handed over
in consulatation with British Council.
There will be no saving to the British Council. They will
remit to the FCO any difference between the cost budgeted for their present operation in Hong Kong and the running costs of the new building. We expect this to amount to around £???? at
1993 prices. Note: OED to refine this tiret and to fill in
figure which will depend on whether the £508,000 is increased
to reflect long term maintenance/rates.
The Council accepted the Ministerial decision despite fears
that the prospects of the (non grant in aid) English language
teaching operation might suffer because of (i) moving away
from the Wanchai area and (ii) close association with the
official representation of the former colonial power.
The money remitted by the British Council to the Foreign Office would be be a contribution or "rent" towards capital
costs incurred for building the space devoted to non grant in
aid work.
Space in the new building dedicated to non grant in aid work
has been assessed at 4245 square metres. The percentage of
space devoted to this work will not necessarily remain
constant; it would of course decrease with any drop in demand
for English language teaching in Hong Kong post 1997. Using
the Treasury Discounted Rate formula, rent for non grant in
aid space charged at current exchange rates would come out at
around £425,000. Added on to running costs, this sum would
represent a substantial increase over what the British Council
is now paying to run its operation in Hong Kong.
The British Council could not meet the increase.
- Were the British Council chosing new premises in the absence
treasury.CONGEN.dbj