TNAG-2344-FCO40-3410-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 175

CONFIDENTIAL

MANAGEMENT IN CONFIDENCE

4. There are four main specific problems for us in the

present drafts: -

a) An absolute bar on alternative use for any space that might

become surplus to BCG requirements during the 50 year term;

b) 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;

c) The Grantor's sundry unfettered rights over future premises

including the right to enter the premises at any time, in some

circumstances without notice;

D d) Delay in giving us possession of an important strip of the site

(cross-hatched on the attached plan) until adjacent road works are

completed, the programme for which is slipping beyond the time of

our needing to build, (although an acceptable compromise involving

an earlier start on a segment of the road may be possible here).

5. HKG agreed to consider all these problems in compiling their

next draft. I think it possible that they will not move in our

direction as much as we should like, and perhaps indeed need. I

recommend, however, that we await sight of this next draft and, if

it still falls substantially short of our reasonable requirements

(including satisfactory estate management arrangements), that Lord

Caithness should consider whether to raise the outstanding problems

with the Governor.

CONFIDENTIAL

MANAGEMENT IN CONFIDENCE