TNAG-1587-FCO40-2171-Future-of-Hong-Kong-British-Consulate-General-1986 — Page 19

11. THIS OPTION HAS ALL THE DISADVANTAGES OF OPTION 2 EXCEPT THAT

HE INITIAL CAPITAL INVESTMENT CAN BE AVOIDED. THE PREVAILING. MARKET

MONTHLY RENTALS FOR HIGH CLASS OFFICE PREMISES ARE HKD250/M2 N CENTRAL, HKD 140/M2 IN WAN CHAI AND HKD 160/M2 IN TSIM SHA TSUN EAST. IT IS NOT ENVISAGED THAT THERE SHOULD BE ANY DIFFICULTIES

IN RENTING SUITABLE ACCOMMODATION FOR THE CONSULATE-GENERAL.

POINTS TO CONSIDER

12. BEFORE PURSUING ANY OF THESE OPTIONS FURTHER, IT WOULD BE USEFUL TO HAVE A POLICY STEER ON THE WAY AHEAD. CLEARLY OPTION 1

MS THE MOST ATTRACTIVE PROPOSITION, PROVIDED THAT EITHER HMG 4S PREPARED TO PAY THE FULL MARKET VALUE FOR WHATEVER SITE IT

ACQUIRES OP SOME SPECIAL ARRANGEMENTS COULD PE AGREED WITH THE

CHINESE GOVERNMENT (AND ACCEPTABLE TO HONG KONG) FOR THE SITE TO

BE GRANTED TO HMG AT A REDUCED PREMIUM.

13. F IT IS CONSIDERED THAT, HAVING TAKEN ACCOUNT OF ALL THE POLITICAL AND ECONOMIC FACTOPS, THE DEVELOPMENTS OF A FREE- STAND PNG CONSULATE-GENERAL IS NOT A REAL PSTIC PRPOOSITION, FUTURE WORK COULD THEN CONCENTRATE ON THE REMAINING TWO OPTIONS, .E. BUYING AND RENTING. THE NEED FOR HOUSING THE BRITISH TRADE

COMMISSION AND THE BRITISH COUNCIL UNDER THE SAME ROOF AS THE

CONSULATE-GENERAL CAN ALSO BE RE-EXAMINED IN THE LIGHT OF THE COST CONSIDERATION.

ENDS

HOLLOWAY

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HMLNAN 1713

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