TNAG-1712-FCO40-23901-Open-extracts-Folios-79--80-1987 — Page 14

CONFIDENTIAL

the Hong Kong Government. He said that the local Manager of GEC had

recently floated with him the idea of a joint development of a site

in Hong Kong. The GEC representative had said that the local

company was cash-rich and would like to invest in a prestige

building in Hong Kong: would HMG be interested in coming into the

project and using part of the accommodation for Government offices?

Mr Holloway had expressed guarded interest, but taken the matter no further. This could however be a promising avenue to explore if the

Hong Kong Government are looking for development of the suggested

sites which would be too intensive for use by HMG alone.

5.

Mr Wiggham reminded me that at an earlier stage the Hong Kong

Government had drawn attention to two vacant sites in or near

Central which could be used for a Consulate General. He asked

whether we could confirm that these sites had now been ruled out. I

said my impression was that HMG would not have the resources to

compete for either site in open auction: I would however check on

the position and let him know.

6.

Please could Mr Hill go over all these points with OED and

let me know how they propose that we should take matters forward. should note that the GEC proposal (paragraph 4 above) is apparently a local initiative by the Hong Kong manager: Mr Holloway believes

that it has not been cleared with GEC head office in London.

I

CSA

CO Hum

CONFIDENTIAL