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RFD are reviewing this with other departments and with the

British Council. The British Council take the view that they

came in on the understanding that they would not have to pay

rent. They are not happy about the Treasury queries (which

echo questions raised by RFD). RFD will brief the Committee

(a representative from the British Council will be present).

We agree with the British Council that the Consulate General

was conceived as a joint FCO/British Council capital bid.

Where we part company is that we think they should make a

rental contribution towards extra costs of construction, just

as OED is finding extra capital resources, outside the Hong

Kong Consulate General PES bid.

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British Chamber of Commerce You might like me to update the

Steering Committee on developments since the last meeting on

collocation of the British Chamber of Commerce. Mr Savage will be in the area at the end of July and could discuss with

the BCC the terms of their inclusion.

Developments in question are that Mr Goodlad wrote to offer

the British Chamber space on the basis that their inclusion

can be organised within the terms of the lease and that the

BCC agree to pay a fair rent for the space occupied. The

Chamber are lobbying for free accommodation, but both Mr

Goodlad and Mr Needham have made it clear that this is not on

offer. We and OED are still exploring how best to square the

inclusion of the BCC with the conditions of the lease. Mr

Savage has identified an approach which might fit the bill (a

licensing arrangement, which, subject to legal advice, will

not breach Special Condition 13 which stipulates that the Grantee "shall not assign, mortgage, charge, demise,

under-let, part with the possession of or otherwise dispose of ..the lot"). Mr Savage will be at the meeting and could go

min.steering.NAT

JEB

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