TNAG-1587-FCO40-2171-Future-of-Hong-Kong-British-Consulate-General-1986 — Page 18

HR) WAN CHAR RECLAMATION FLEMING ROAD (6,000 M2)

SAME SIZE AS (NN) BUT LESS ATTRACTIVE IN TERMS OF LOCATION.

7. SETTING ASIDE THE LEGAL AND TECHNICAL QUESTION OF HOW TO SECURE BEFORE 1997 LAND TITLES UPON WHICH THE CONSULATE-GENERAL

CAN RELY THEREAFTER, MT WILL BE NECESSARY TO CONSIDER WHETHER

AND IF SO HOW MUCH LAND PREMIUM WILL BE CHARGED FOP THE SHTE. AT

PRESENT ALL CONSULATES-GENERAL AND HIGH COMMISSIONS ARE HOUSED IN

COMMERCIAL PREMISES AND IN THE MAJORITY OF CASES RENT RATHER THAN

OWN THE IR ACCOMMODATION. THE ONLY EXCEPTION IS THE U.S. CONSULATE- GENERAL, WHICH OCCUPIES A SITE ON GARDEN ROAD GRANTED TO THE U.S. GOVERNMENT BY PRIVATE TREATY IN 1950. THE LEASE TERM OF THE

U.S. CONSULATE-GENERAL SITE RUNS FOR 75 YEARS (RENEWABLE FOR

ANOTHER 75 YEARS) FROM 1950, AND THE PREMIUM WAS CHARGED AT FULL

MARKET VALUE (HKD 1.41 MILLION). IF THIS PRECEDENT IS TO BE FOLLOWED, THE LAND PREMIUM FOR THE VICTORIA BARRACKS SITE AND

MURRAY ROAD SITE KS ESTIMATED TO BE HKD 1.656 MILLION AND HKD

360 MILLION RESPECTIVELY. THE COST OF THE FLEMING ROAD SITE WILL

BE LOWER AND IS ESTIMATED TO BE IN THE REGION OF HKD270 MILLION.

A LIST OF POSSIBLE SITES IN CENTRAL AND WANCHAM IS AT APPENDIX .

8. LAND PREMIUM PAND BY HMG WILL BE SHARED BETWEEN HKG AND SARG

IN ACCORDANCE WITH ANNEX M TO THE JOINT DECLARATION.

OPTION 2 : PURCHASING EXISTING PREMISES

9. THE EXISTING MARKET RATE FOR FIRST-CLASS OFFICE PREMISES IN

CENTRAL IS ABOUT HKD 30,000/M2. THE COST FOR BUYING 5,000 M2 OF

OFFICE SPACE WILL BE IN THE REGION OF HKD150 M, WHICH IS

SIGNIFICANTLY LOWER THAN THAT IN OPTION 1. THE COST CAN BE REDUCED IF IT IS DECIDED THAT THE CONSULATE-GENERAL, OR PART OF T

(E.G. THE BRITISH COUNCIL) CAN BE HOUSED IN WAN CHAN OR TSIM SHA

TSUN. A LIST OF NEW COMMERCIAL BUILDINGS IN CENTRAL AND WANCHAI,

TOGETHER WITH DEVELOPMENTS SCHEDULED TO COME ON STREAM IN THESE

AREAS IN AROUND 1990, WHICH MAY BE AVAILABLE FOR SALE IN THE

MARKET IS AT APPENDIX DK.

10. THE MAIN DISADVANTAGES OF THIS OPTION IS THAT THE CONSULATE-

GENERAL WILL NOT BE ACCOMMODATED IN A FREE-STANDING BUILDING AND

THERE WILL BE THE USUAL PROBLEMS OF ACCESS AND SECURITY ETC. COMMON

TO ALL MULTI-USER COMMIERCIAL BUILDINGS IN HONG KONG.

OPTION 3 : RENTING EXISTING PREMISES

1.