CONFIDENTIAL AND PERSONAL

that any departure from the standard terms for land grants tends to be seen in BLD as a policy issue. A further concern is that although our proposal is in line with Special Condition 13, our Legal Advisers have suggested that we should draw HKG's attention to a complicating factor, namely that it is somewhat difficult to reconcile Special Condition 7 with Special Condition 13 (for ease of reference both Special Conditions are enclosed). Our Legal Advisers think that we should seek from BLD an acknowledgement that in granting a licence to the BCC there would be no breach of Special Condition 7.

I would be most grateful if you could ask someone to take some soundings on what we propose and let me know whether the way is clear for Francis Cornish to take up the matter of accommodation for the BCC formally with the Director of Buildings and Lands. Any advice on how to present the point would also be appreciated! On timing, it would be useful if possible to have an initial response before Mr Goodlad's visit to Hong Kong in October; he may wish to have a word with the Governor about this.

Ye ever,

PF Ricketts

Beter Rickett

It.bloeung20sep.NAT

JEB

CONFIDENTIAL AND PERSONAL

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