RESTRICTED
9.
(c)
us from sub-letting any future surplus space to outside commercial companies. If the terms of the PTG could not be re-negotiated, we could in theory be left with large areas of surplus space. But Hong Kong Dept (FCO), consider that the risk, of political relations deteriorating to the point where the Council's operations were jeopardised, is minimal. In the worst of scenarios, it could be possible to convert surplus space to residential use; and
Expropriation of the site and new buildings by the Chinese is a possibility, but HKD consider the risk is minimal and the recent introduction of a satisfactory compensation clause in the PTG would protect our investment.
Our Ministers have accepted our proposed course of action to proceed with the project at a total estimate cost of £27.55 million while continuing to scrutinise every aspect of the project for further cost savings. I should be grateful for your agreement to proceed. The DCFS on the Passport options will be forwarded as soon as possible (para 6 (a) above). I would normally have delayed this letter until these were also available but time is important as we need to keep to programme for occupation by 1 July 1996. dates are:-
(1 May 1993
June 1993
August 93
Took possession of Colvin House site).
Submit FSDs to Hong Kong Authorities for Building Ordinance approval.
Site clearance and enabling works including demolition of Colvin House.
Go to tender for the foundation works.
Start on site on foundation works.
Go to tender for main works contract.
Key
February 94
July 94
Start on site on main works.
10.
This letter has been agreed by RFD and our Economic Advisers.
Yours
Alex Ismill
A D Smith
PPU OED
PCAS3.784
RESTRICTED