08-DEC-1992 16:48
OED CROYDON
ODE 18-77
7 December 1992
Reference.
081 686 4951
P.01
HKCD $38, 406/1.
(16)
John Morris HKD
BY FAX
071 270 3387
28
STC ACCOMMODATION : HONG KONG
1.
194) or (195
I was disappointed to see from Stephen Day's letter of 4 December that he has returned to the idea of giving up The Albany. I think we all hoped that, with some modest concessions to meet the Day's particular requirements, the flat was to continue to serve the purpose pending resolution of the long term requirement of the future Consul General.
2. As you know OED does not share Mr Day's view of The Albany. We consider it to be a perfectly acceptable solution to the present need. There seems to ha no obvious operational or economic advantage at Repulse Bay. On the contrary, it presents a major disadvantage in terms of location looking both to the short and long term, and the journey times to it will frequently far exceed 20 minutes.
3.
Our lease at The Albany runs to 31 August 1995 and contains an option to renew. The rent, HK$165,000 p.m., was reviewed earlier this year and includes service charges plus the use of 3 parking spaces (not 2) and a dedicated lift. The total of rent, services charges and equivalent parking at Repulse Bay would be HK$158,400
p.m.
4.
Under The Albany lease we are obliged to find a replacement tenant of similar standing and pay rent until we do. We might also be required to reinstate The Albany to its original layout and redecorate, which could be expensive. I imagine that Swires might play ball, but we are concerned lest we send them the wrong signals.
5. Although the layout of The Albany is not perfect by any means that at Repulse Bay has its own disadvantages. We cannot make any judgement on 'style' but outward appearances do not encourage me to think it is likely to be significantly more 'British' than The Albany. And it would also appear to suffer some of the ostentation to which Mr Day took such exception at The Albany.
PJ723.DS