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Mr Morris
1.
Reference
HKD 402/13
(29
Chee or
05 JUL 1993
INVE
FUTURE CONSULATE GENERAL: BRITISH CHAMBER OF COMMERCE
30
1.
2.
We spoke about Mr Savage's minute of 23 June.
I have spoken to Mr Savage. He now accepts that we cannot run with SC 7a which envisages uses ancillary to the purposed of the Consulate General (for the reasons laid out in Miss Brooks' minute of 13 May).
3.
However he still feels that there is scope for exploring further SC 13. In particular, (and he mentions this in his minute under reference) he feels that a revocable license which would give no interest in the land, might be a vehicle for including the British Chamber of Commerce without the need to approach the Director. He explains that as he sees it, licensing would not affect our obligation not to "assign, mortgage, charge, demise, under-let" etc (my minute of 5 May and Miss Brook's of 11 May respectively set out the Special condition and explain these terms) without applying for the prior written approval of the Director. Mr Savage tells me this is a device sometimes employed to get round this sort of provision. He has suggested that there would be value in taking legal advice on this locally in Hong Kong. (We would in parallel consult our Departmental Legal Counsellor).
4.
Mr Savage also feels that, even if we do have to go to the Director of Buildings and Lands, we would first need to explore with the Chamber of Commerce the terms of their accommodation within the building. Would they be content with the license arrangement if it could be managed? If such an arrangement will not run for legal reasons, and if we had to pay a premium to the Hong Kong authorities, the BCC must appreciate that the compensation they give for the facilities provided would need to cover this premium in addition to other elements (eg service charge).
5. Mr Savage could arrange to be in Hong Kong at the end of July and to pursue this subject further with Johnson Stokes and Masters and to speak with the BCC.
6. I believe we should hold back instructions to Mr Davies until we have been able to check the license point. (I would ask Mr Savage to instruct BTC on briefing Johnson Stokes and Masters). It would be a neat solution - but we would need to be certain that we would not be seen as in breach of the PTG.
We would need to keep Mr Dinham in the picture.
7.
We clearly do need to talk further to the Chamber of Commerce, although I am not sure that we would want to air the delicate problem of whether we can escape approaching the
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