CONFIDENTIAL
goodwill in Hong Kong generated by the Government's efforts over the Nationality Bill to clinch a substantially better deal than would have been
achievable. The next step will be for him to seek ExCo's approval to make HMG a Private Treaty Grant of land at nominal costs (less than £100) on a well located site close to the Central District on Hong Kong Island, known
as the Colvin House site.
5. This is a major concession worth over £20 million at prevailing land prices. It brings the cost, in capital terms, of building a free standing Consulate General below the cost of all the other options which we also explored, such as joint development and shared use with a commercial developer of a high rise building, or renting parts of other buildings. Moreover, none of these other options would have gone as far towards meeting our agreed objectives.
6.
The Colvin House site is large enough for a substantial free-standing building housing not only the Consulate General, but also the British Council, a large Immigration Section and some residential accommodation.
7. A building of this size and quality would satisfy all HMG's post 1997 needs, as well as meeting the political requirements described above. Under the arrangement we
the construction costs.
have negotiated, we would meet
We estimate these to be in the order of £20 million and I included this figure in my present PES bid. We will effectively get a building at half-price.
CONFIDENTIAL