PERSONAL AND

CONFIDENTIAL

accept it. The latest wheeze produced by HKG is that the cost of building a replacement for Headquarters House should

be met by our handing back to HKG some surplus GCHQ flats (Pendragon). We have so far been trying to sell Pendragon † HKG

(though they are not very marketable) or to swap them for

other properties suitable for most junior staff accomodation for the BCG. Presumably even with the Governor's deal, the FCO would have to compensate GCHQ in due course, so it

wouldn't be a cost-free option for us.

4. Mr Galsworthy's preferred option of seeking a

non-military house runs back into the ExCo problem.

this is one for the new Governor?

Perhaps

Pachuch

PF Ricketts

JM1ADI/2

PERSONAL AND

CONFIDENTIAL

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