humsp.CONGEN.dbj
MEETING WITH MR DAVEY, BRITISH COUNCIL 21 SEPTEMBER 1993
HONG KONG: BRITISH CONSULATE GENERAL BUILDING
You will be aware that the Treasury have made it clear to us that they would expect the British Council to pay rent for the space to be occupied in the new building or to contribute in some other way to the capital costs of the new accommodation. The Treasury tell us they want to avoid a situation in which the Council would in effect be receiving a subsidy for non grant in aid services.
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Appreciate that this is unwelcome to you. We must look for an accommodation with the Treasury which is acceptable to all
concerned.
Both you and we are looking at the various costs for maintaining and servicing the new building.
- Our Overseas Estate Department is taking a very detailed look at the Swires figures on which your calculations for running costs are based. We think that you may have overestimated the running costs (Swires model not appropriate for non profit making organisation). Won't go into detail now, but suggest a separate meeting to look at this whole issue in more detail.
The rent question is a bigger problem than that of running costs. Our case to the Treasury will take account of the fact that the British Council should not be expected to pay a premium for complying with Ministers' wishes.