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6.
Council would, obviusly, pay their share of running costs (including ground rent).
We have consistently taken the line that the Consulate General building will convey the message in Hong Kong of Britain's continuing interest in Hong Kong and of our support for the continuing British commercial stake, and that it needs to be as impressive as possible within the constraints of our resources. Ministers decided early on that a building including the British Council will do much more to make a British mark than a building confined to core activities and have been consulted along the way. You will recall PS/No 10's much quoted letter of 22 February 1989 to the PS. This said that "it was very important to future confidence in Hong Kong that Britain should be seen to acquire a substantial building on a prestigious site for its official representation. This would inevitably be expensive, but that would have to be borne."
6.
But the Treasury are concentrating not on the principles underlying the decision to construct, but on practice elsewhere in the FCO estate - where the British Council apparently pays rent. The Treasury will find it difficult to accept a net saving to the British Council as a result of the move to new accommodation (the Council will presumably argue, as they have in the past, about the possible risks they are taking by moving in with the FCO). Once we get the British Council and OED figures, we should be able to see whether the British Council will in fact make a net saving when they move into the accommodation.
7. Mr Marr refers to the supply of non grant in aid services by the British Council and asserts that rent free space would amount to an unfair subsidy to the British Council in the supply of these services. Grateful for advice from CRD on what services are covered under this rubric. Do we know whether they are provided in Hong Kong?
Mr Dames Jones.
Deborah Barnes Jones
Hong Kong Department
WH 312
AUGUST
270 2068
6 July, 1993
cc Mr Magor, CRD
Mr Smith, OED Mr Savage, OED Mr Morris, HKD
6.8.CONGENdbj
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