aef1.1g/bgm/9.22.7 See
HM Treasury
59
DIEL
Parliament Street London SW1P 3AG Telephone 071-270
MKD 406/2
0 6 AUG 1993
66
4895
CONFIDENTIAL
RECENT
A J Wootton Esq
Resource and Finance Department Foreign and Commonwealth Office Room 2/107
Old Admiralty Building Whitehall
LONDON
SW1A 2AF
22 July 1993
Alan,
HONG KONG: NEW CONSULATE GENERAL
Thank you for your letter of 7 July. The information it contained was extremely helpful, in particular your confirmation that the Hong Kong Consulate General project was at the top your priority list has enabled us to take decisions about the case from OED for Treasury approval. When we spoke by telephone you also clarified that this project is not amongst the 5 per cent savings options in the Foreign Secretary's Position Report for the 1993 Survey.
2.
I am glad to learn that the British Council pays the FCO rent for the space it occupies in Diplomatic Wing buildings. If it did not do so, there would be a subsidy to the British Council which not only effectively increased the grant in aid but also would amount to unfair competition by the British Council in the supply of its non-grant in aid services. I am sure you will agree that
could not be tolerated.
new accommodation in rent. You say the rent for their present correctly, taken into
3. Against that background, I am surprised that the British Council will not be contributing in any way (apart from negligible ground rent) to the capital costs of their Hong Kong, either directly or through currently paid by the British Council accommodation in Hong Kong was, quite account in the investment appraisal for the new Consulate General building. However, it is quite another matter that the Council will be making a rent saving once they move into the new accommodation.
4.
We have re-examined the 1990 papers we have about the new building. We can find nothing in them to suggest that it was the intention that the Diplomatic Wing should provide virtually free accommodation to the British Council, especially when it is paying for its current accommodation. I should therefore be grateful if you would review this matter.
сик
sincerely, Mass
You
From 1
BG MARR AEF1
Switchboard 071 270 5000
Fax 071-270 5653
Telex 9413704
59