TNAG-2344-FCO40-3410-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 158

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A

C

d)

e)

we should invite outline design proposals from 5 architectural practices (subject to their acceptability to the Project Manager); and

we should strengthen and accelerate liaison with the HK Immigration Service on accommodation-related issues.

Mr Burns' Steering Committee, which held its second meeting on 13 November, concurs.

Background

3.

My minute of 12 September to PS/Lord Caithness set out an approach to the management and design of the new Consulate- General which Lord Caithess's meeting on 17 September broadly endorsed. Mr Burn's subsequent meeting on 4 October coordinated all departmental views. In consequence, Mr Newey (OED Project Manager), Mr Savage (OED Estate Surveyor), Mr Morris (HKD's Project Coordinator) and I visited Hong Kong last week to take forward the key discussions. This submission summarises the outcome of those discussions and makes recommendations about the way forward.

Private Treaty Grant (PTG)

4. We had several meetings with members of HKG's Lands Branch about the unofficial first draft of the proposed PTG and its attached Special Conditions. The Grant will constitute our title to the site and buildings for a 50 year term. We enquired about an option to renew, but they explained that the Joint Declaration. gives HKG no power to grant this (and Legal Advisers have now confirmed that this is correct). We had some difficulties with HKG's proposals, which are much less flexible and significantly more onerous than we would willingly accept elsewhere. HKG argued that every other recipient of a PTG had accepted similar terms to those put to us, but accepted that the inclusion within our development of eventual diplomatic premises (within the meaning of the Vienna Convention) could merit some

reconsideration.

5. There are four main specific problems for us in the present drafts:-

a)

b)

an absolute bar on alternative use for any space that might become surplus to BCG requirements during the 50 year term;

the Grantor's right to re-possess the premises (without compensation) if he judges that our use of them "has SO diminished that the retention of the land

is no longer justifiable", or (with compensation) if the site is required "for the improvement of Hong Kong or for any other public purpose whatsoever"; but the absence of a diplomatic

break clause;

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