8.
We have carried out a risk analysis of the project: the main
risks are:
(a)
Escalating construction costs resulting from increased
activity in the local construction market once the
current political constraints on the new airport and
other work are lifted. If we can maintain our current
programme and invite tenders before construction costs.
escalate we could well be the gainers from particularly
competitive bidding for the contract.
(b)
PCAS3.784
The British Council's Direct Teaching of English
Operations could be vulnerable after 1997 e.g. closure of
the English classes by the Chinese. This would reduce
their requirements by 80% and would subsequently mean
that less than 2 floors of the proposed Council wing
would be needed for the remaining functions. The Private
(currently Treaty Grant for the Colvin House site/prevents us from
sub-letting any future surplus space to outside
If the RF proved verses of the PTG could not he re-vegokiaked, commercial companies. We could in theory, therefore, be
left with large areas of surplus space. But Hong Kong
Dept (FCO), consider that the risk, of political relatins
deteriorating to the point where the Council's operations
were jeopardised, is minimal. In the worst of scenarios,
could
it may be possible to convert surplus space to
residential use; and
RESTRICTED