TNAG-2344-FCO40-3410-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 176

CONFIDENTIAL

MANAGEMENT IN CONFIDENCE

British Council Colocation

E

6.

We examined the various considerations bearing on the British

Council's colocation in the Consulate-General building, and believe

that there are no major outstanding difficulties. The HKG have

confirmed that the Council's English Language Training (ELT)

activities will not be incompatible with the conditions of the PTG

(HK Telno 3268). Although the Council's legal status under Royal

Charter in Hong Kong will lapse in 1997 and it is unclear what

attitude the Chinese will adopt thereafter, the Council have

concluded that registering under the Companies Ordinance offers the

best chance of continuation of operations. If the Chinese insisted

on imposing restrictions, the Council would adapt as necessary but

having registered will in any event do no harm: the Goethe

Institute have registered in this way upon the same rationale.

7. On the question of whether close association with HMG might

damage their interests after 1997, the Council have concluded that

the balance of advantage lies in colocation. If things turned bad,

neither anti-British demonstrators nor the Chinese authorities are

likely to consider the Council free from British taint, even if

they were located separately from the Consulate-General (and

locally engaged staff recall that anti-British demonstrators in the

late sixties made no such distinction). Conversely, if things

turned very bad, the Council might well be safer in the

Consulate-General development.

CONFIDENTIAL

MANAGEMENT IN CONFIDENCE