TNAG-2344-FCO40-3410-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 166

Reference

file 160

CONFIDENTIAL

HKC 406/1

406/1

folio 157.

/

A

HONG KONG: FUTURE BRITISH CONSULATE-GENERAL: BRITISH COUNCIL CO-LOCATION AND FUTURE STATUS

1.

I attach for your information a copy of a paper dealing with the British Council's future status and colocation in the new Consulate-General building. This was drafted in response to the Governor's request (recorded in BTC telno 299) to see a paper setting out the arguments and conclusions on the question of the British Council becoming closely identified with HMG's official presence after 1997. The paper's conclusions are summarised in Mr Bertram's submission of today's date.

2.

The paper was written after consultation with the British Council in Hong Kong and reflects their views. Mr Pugh has also seen a copy and concurs. (We do not intend to submit the paper; its purpose was to reassure the Governor that we have thought through the implications in detail and, to this end, I left a copy with Government House.)

3.

As agreed, I also raised with Mr Buchanan your concerns about the implications of registration under the Companies Ordinance. He told me that they had considered the matter in depth and were content that, (in so far as these things can be predicted) they should be able to operate as effectively as now with their new status. He pointed out the distinction between their chosen route - registration as a branch of an overseas body (which the Goethe Institute has also done), as distinct from registration as a local company, which the Alliance Francaise has done. On the question of administrating an Aid fund, he said that, so long as Hong Kong remains as successful as it is, there is little

likelihood that they will qualify for Aid. But in any event, if the Chinese decide that their new legal status is unacceptable, the Council can always adapt as necessary.

Jharia

J C Morris

Hong Kong Department

WH 312

270 2068

15 November 1991

cc: Mr Ricketts

Mr Bertram, OED Mr Cox

CODE 18-77

JCMAAC

CONFIDENTIAL