TNAG-1636-FCO40-2252-Visits-by-FCO-officials-to-Hong-Kong-1987 — Page 78

1

(iii)

CONFIDENTIAL

the building was paid for by the HKG and the site

reverts to the HKG when there is no military use

for it. But because of the circumstances of its

financing (which involved release of another

valuable site to the HKG) we might conceivably be

able to argue for favourable financial

arrangements from the HKG;

(iv)

The building is suitable from other points of view

(see paragraph 7 of the annex to this paper);

22.

On the other hand numerous considerations argue

against use of the PWB:

(i)

(ii)

it would run counter to present Chinese

intentions, as we understand them. The Chinese

have made it clear that as a general principle all

military sites should be kept available for the

use of their garrison after 1997. To press for

retention of such a dominating site, especially

one with such strong colonial and military

associations, could well be offensive to them;

it would equally run counter to the present

intentions of the HKG, who have begun considering

alternative uses (as a police headquarters or

government offices) on the assumption that the

site will revert to them. It would not be

politically expedient to seek to force the HKG to

cede the site to us against their wishes;

CONFIDENTIAL