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5/3
Mr Morris
Mr Ricketts
A
Bowleged Mr Smith orally
Da 8/3
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Reference
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OED SUBMISSION ON HONG KONG CONSULATE-GENERAL
the fo
1. I attach OED's draft submission. I have passed on initial comments to OED after discussion with Mr Morris. These were:
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Paragraph 5. As drafted, it gives the impression that the design changes listed from A to E received the endorsement of the Steering Committee. This was not the case for C or D (the Steering Committee agreed to the deletion of only one unit of residential accommodation). Mr Smith felt that the second sentence of paragraph 2 made it clear that all the design changes had been endorsed. He agreed to look at this paragraph again in the light of my comments.
Paragraph 7. I suggested to Mr Smith that the submission could usefully spell out the approximate amount, say per annum that we would be looking for from the British Council. (When we were looking at finding an extra £3 million for the building OED now tell us the likely revised estimate costs exceeds by £1.84 million the updated PES figure - OED did some sums for us. An annual rent equivalent to the interest payments on £1 million over the life of the lease might work out at around £64,000 per annum). Mr Smith agreed to work in a formula along the lines given to us earlier by OED.
2.
I also suggested to Mr Smith that the submission would need to give some indication of the likely reaction of the British Council to this approach. Mr Smith has not broached with the British Council the idea of their paying an annual "rent" as their share of the cost overrun. I suggested that, should OED decide that this was not the moment to go over this ground with the British Council, they would need to give some flavour in a submission of the likely reaction - which OED evidently think will be negative - or at least to say that the subject has not yet been opened with the British Council.
3. I have indicated in manuscript on the draft slight amendments.
4. Grateful to know whether you would like to me to raise any other points with OED. We are asked to give them our comments by close of play today.
Mr Barnes Jones,
Deborah Barnes Jones
WH 312
270 2068
HKD 406/2
RE
09 MAR 1993
J5/3
5 March 1993
oed.sub NAT.JRB
CODE 18-77
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INL