the case of Hong Kong the agreement on co-location precludes us from charging a commercial rent.

I can confirm that the project to build the new Consulate General in Hong Kong is at the top of our priority list. have to go ahead with the building in order to have it completed by the handover of Hong Kong to the Chinese in

1997.

We

It has taken me longer than I would have liked to reply to your letter because I had to consult widely on the facts. pointed out to Kim Elliman that I hoped your questions on the British Council would not delay the overall consideration you are giving to this project. The FCO's Steering Committee on the Consulate General project asked me to point out that we ought now to be letting the demolition contract and asked how long it would take to obtain Treasury approval. I would be grateful for an indication.

Yours sincerely,

Alan Moott

A.J.Wootton

Resource and Finance Department

OED/hongkg, bc, tsy2

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