CONFIDENTIAL

L. In two recent cases OED have fixed rents for British Council

ccupation of part of Embassy buildings at rates which forced the ouncil to go elsewhere. Miss Spencer's minute of 30 July to rs Sutherland and Budapest telegram 358 (attached) explain the ifficulty. Since the British Council operation would represent ich a major part of the Colvin House project, it will be essential

· establish appropriate guidelines on rent levels and have them reed with the British Council before a final decision to go ahead

taken.

2. R. Holmes

3 Holmes

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