Tel. No.: Whitehall 1234.
AIONAL
SCHER
5.4392/47
Your Reference...............
Treasury Reference O. F. 110/59/34
(14)
Dear Mayle,
RECEIVEL
19 SEP 1947
| C. O. REGY
12 5315
TREASURY CHAMBERS,
GREAT GEORGE STREET,
LONDON, S.W.1.
17th September 1947
Your letter of the 4th September to Williams regarding the terms of rental for the new site for the United States Consulate in Hong Kong has been passed to me.
I am afraid that there is no specific advice we can give to you concerning the capitalization terms set out in
(13) Hong Kong Savingram No. 462, as we assume that these have
been arrived at locally in the light of local practice. You will be aware that as H.M.G. will only remain responsible for American diplomatic and cultural expenditure in the sterling area until 31st December 1951, it is generally advantageous to seek annual rental terms which are liable to be revised at stated intervals, having regard to the fact that the site value might appreciate. But if (a) local land practice, and (b) the wishes of the Americans lead to other arrangements such as the capitalization proposal, we must look to the local authorities to put forward what they consider to be the most acceptable proposition in the circumstances. If you are satisfied that this is the case in the present instance, we have no further observations. in this e988,
Yours sincerely,
1.J. Charles
N.L. Mayle Esq.
Colonial Office,
D22
for won. Serpell.