Russ Jarvis

Management Officer

BTC Hong Kong

by faxlok

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нко 406/

R+

14 JAN 1993

INDE

file copy

Foreign & Commonwealth

Office

London SWIA 2AH

Telephone: 071-

13 January, 1993

Dear Russ,

FUTURE CONSULATE

HKD 406/2

NERAL

GENERAL BUILDING:

2

215 ов

PRIVATE TREATY GRANT

Our telno 2 referred to consulting Ministers about the PTG and problems in getting the language we want on SC14.

1.

Mr Goodlad has now agreed that we should seek better conditions in the event of expropriation than HKG have so far offered. We recommended enlisting the aid of the

Constitutional Affairs Bureau and we will be in touch with you more formally in due course to run our proposals by you.

2.

In the meantime I enclose our preferred version of SC14 and would be grateful if you could let Johnson Stokes and Masters (JSM) take a further look at it. As you will see, we found their suggestions (conveyed to me under cover of your letter of 11 November) helpful and have incorporated most of them. The version I attach has been agreed by OED and Legal Advisers here. We are conscious that in asking for 36 months' notice we are probably being over optimistic, but this is our ideal. Other changes were governed by our desire to strengthen as much as possible provisions for equivalent reinstatement in premises of a similar standard and to get away from basing compensation on depreciated values. We are now drawing up minutes of the 6 January meeting of Mr Hum's Steering Committee which discussed these matters; these will be copied to you in due course.

3.

I will not burden you with a blow by blow account of how we settled on the language in our latest version. There is one point on which you may find it useful to have the background to our thinking. We have left the language in the second line of the JSM draft, i.e. expropriation of "all of the lot" rather than "all or any part of the lot" as it stands in the HKG draft. It was felt by OED that it would be preferable to have the right of expropriation applying to the whole site and not to part only. (They took the view that spelling out the right to appropriate part of the site was best avoided and that if the Grantor were to require part of the site only for normal public purposes, it should be possible to negotiate separately on this). Nevertheless, we agreed that if we were able to secure language meeting our

406/1.ptg.dbj

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