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minutes attached for ease of reference).

The Private Treaty Grant (PTG), which allows us the use of the Colvin House site until 30 June 2047, was formally signed on April 1993: title to the site would revert to the Government of China in the event of HMG having no further need for it.

4.

We

In Dec 91, OED appointed, after interviews and fee offers, Swire Properties Ltd as Project Managers. In February 1992, OED commissioned outline design proposals to a full brief from six firms of UK Architects with experience of Hong Kong. subsequently selected Terry Farrell and Company to develop their design submission which they estimated, at April 1992 prices and rate of exchange, at £24.2 million: this was in line with estimated cost of the other competition schemes and within the October 1991 PES settlement figure of £24.8 million. Farrell's original design provided for two separate ten storey buildings for the Consulate- General and British Council, linked internally plus a staff Residential block of 9 flats and a small swimming pool and fitness room to cater for the residents: the latter two facilities are included in the majority of Residential complexes which we lease in Hong Kong. Farrell produced in late September 1992 their Preliminary Sketch Designs (PSDs) which fully met the requirements efficiently and securely. However the first detailed estimate of the cost was not available until November 1992 and, at £32.15m, was unacceptably high even when taking account of sterling's devaluation in October 1992.

5.

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We therefore looked at ways substantially to reduce the costs of the Preliminary Sketch Designs. We have changed some of the specification levels, for example, changing the precast concrete cladding proposed by Farrell for a good quality natural stone, and reduced and/or omitted some of the original requirements e.g. the omission of the British-Council's multi-purpose hall, the deletion of an enclosed link between Consulate and British Council buildings, deletion of two staff flats, reduction of car parking, and reduction of British Council's classrooms from 30 to 23. As a result, the size of the buildings has now been reduced from 10 to 9 storeys and the revised total estimated cost now stands at £27.55. (The estimate has been prepared by the Consultant Quantity Surveyors, Widnell). Farrell produced revised PSDs to take account of the above changes: their revised drawings maintained the quality and operational efficiency of the buildings. We therefore instructed Farrell in March 1993 to progress their proposals to Final Sketch Design in order to maintain the current programme for occupation by 1 July 1996.

6. The future Consulate General, as now designed, will satisfy all HMG's post-1997 needs, and house them in a fitting building of quality that provides excellent value for money. As the Foreign Secretary noted in his minute to the Prime Minister, we will effectively get a building at half price. The estimated cost

PCAS3.784

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