TNAG-2658-FCO40-3854-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 51

CODE 18-77

Reference.

3 February 1992

BY FAX

See Telour e for еры

19/2

J Morris HKD

FUTURE CONSULATE-GENERAL, HONG KONG : PTG

1. I refer to Smith-Laittan's letter of 31 January and enclosures.

2. Some progress is evident and welcome but many of the original reservations remain. A letter of comfort may be helpful but for my part I would much prefer to press for a satisfactory, legally binding document capable of registration. We do not know what the letter of comfort might say but it would be interesting to know what Legal Advisers here think of the idea in principle. I assume it would deal sympathetically with our concerns over possible unreasonableness in the exercise of the Grantors powers and the property's diplomatic status.

3.

As far as the redrafted conditions are concerned I would comment as follows:

Clause 2 (a) Agreed

LO

(b) Agreed

5

(b)

7

8

11

(c)

Agreed

I still consider this to be too onerous. It is unreasonable to leave the question of Consulate General ancillary accommodation and the activities which the Council may undertake subject to the approval of the Director. I would like to insist on the redraft I proposed last time.

Whilst not a clause highlighted previously this is another instance where we need to ensure the Director acts reasonably.

Again over the 50 year term I believe we should have the right to allocate space, within the overall permitted total, at our discretion.

PJ14.DS