TNAG-2078-FCO40-2958-Hong-Kong-culture-1990 — Page 3

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Ms Coglin

Saunder

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Reference.

R&R HIL Canne (8)

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"[SEE Fifoot's

BRITISH CONSULATE GENERAL AND THE BRITISH COUNCIL

GF

612.

reply at (64)

1. Mr Pugh of Asia and Pacific Department of the British

Council called on me on 5 December. The main point we discussed was the compatibility between the British

Council's occupation of the British Consulate General building and its status under Hong Kong law after 1997.

2.

You are dealing with the future status of the British

Council. I understand that they are likely to have to

change their status under Hong Kong law in 1997. They

believe that the only feasible option is to register under

the Companies Ordinance.

3.

The lease for the Consulate General building is likely

to contain a clause excluding commercial use of any of the

land or buildings on it. The question arises whether

registration under the Companies Ordinance would by

definition give the British Council a status which was

incompatible with the terms of the lease.

4. I should be grateful for any comments Mr Fifoot may

have. We shall then, in any case, need to send a telegram

to Hong Kong. Given that we all agree in principle that the

British Council should be able to share the Consulate

General accommodation, we should be able to find a pragmatic

solution as long as those concerned are aware of the

difficulty (if one indeed exists).

hahaja

6 December 1990

Cc: Mr Fifoot, Legal Advisers

Miss Marsden

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CODE 18-77

P A Major (Ms)

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