TNAG-0525-FCO40-620-Visit-of-UK-Members-of-Parliament-(Defence-and-External-Affa-1975 — Page 33

only because there has been an increase in demand in connection with

initial fumishings.

IR ROPE:

I do not understand the increased world-wide demand. I did

not know there was an increase in diplomatic posts in the last few years.

A. I think: the answer is that there has been a longe inonesse in the number

of post hirings. The proportion of post hirings there fumiture issupplied

by the PSA is about 66 per cent.

C. That has cone up significently?

A. Yes.

CHATIAN: In Athens we om only one residential property, and that is the

nice residence of the Ambassador. Would it have been possible to have

bought more probably in the early 1970s before the escalation of prices?

A. (Ir Houlex) The situation has been examined several times since 1970,

and two visits were carried out by PSA surveyors in the first quarter of

1971, and prices were found to average more than 12 times the rent of the

properties investigated. Subsequently, the position vis-c-vis the 4DR

has deteriorated.

FIR SANDELSON: There is another aspect to this affair which rather worries

me. Bearing in mind the restriction on the outlet of capital for purchase

ofproperty abroad, with continuing inflation in these countries it rust

clearly be worth while to acquire properties rather than pay even increasing

and often extortionate rentals. I would have thought that there should be

a Foreign Office policy for house purchase. On the 20 year rent basis we

are paying an annual rent bill of sone 277,000 in Athens, and on a 20

year purchase the capital involved there is C1 million, and in a 40 year

purchase taking into account the inflated position in Athens, it is a total

of £3 million. Clearly you cannot lay out £3 million in one fell swoop

Surely there must be sone progressive policy over the years of acquiring

properties for the benefit of this country in expensive ospitals so that we

cen house our people in the right way with all that that inplies. I recall

questions that we mut to our staff over there in regard to commercial