TNAG-2658-FCO40-3854-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 6

CONFIDENTIAL

HKD 406/1

CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 274

OF 211535Z FEBRUARY 92

TOP COPY Q DIST?

INFO PRIORITY BTC HONG KONG, UKREP JLG HONG KONG

35

113427

MDLOAN 8412

pa

126/2

PERSONAL FOR PS/GH FROM RICKETTS, HKD

BTC PERSONAL FOR SBTC

UKREP JLG PERSONAL FOR GALSWORTHY

Ga

YOUR TELNO 439: FUTURE BRITISH CONSULATE-GENERAL: PROPOSED

PRIVATE TREATY GRANT

1. MANY THANKS FOR YOUR PERSONAL INTERVENTION IN THIS MATTER.

2. THE POINTS IN YOUR PARA 4 ARE WELL TAKEN. WE AGREE TO THE INCLUSION OF A PROVISION IN THE LEASE, AS YOU PROPOSE IN YOUR PARA 6, THAT THE HONG KONG GOVERNMENT, IN EXERCISING ITS POWERS, SHALL ACT AT ALL TIMES IN CONFORMITY WITH ANY INTERNATIONAL OBLIGATIONS THAT MAY BE APPLICABLE, BEARING IN MIND THE APPROVED USE OF THE PREMISES. WE AGREE THAT THIS WOULD AVOID ANY DIFFICULTIES OVER THE HONG KONG GOVERNMENT APPEARING TO CONFER CONSULAR STATUS ON THE PREMISES OF THE FUTURE CONSULATE-GENERAL: THIS, OF COURSE, IS A MATTER BETWEEN THE UK AND THE PRC AND SUCH STATUS COULD ONLY EXIST AFTER 1 JULY 1997. DO YOU INTEND THAT THIS LANGUAGE SHOULD GO INTO THE PTG AS WELL AS THE LEASE?

WE SHOULD CERTAINLY PREFER IT TO DO SO.

3. THAT TAKES CARE OF ONE OF THE OUTSTANDING POINTS. I DO NOT WANT TO BEHAVE LIKE A CHINESE NEGOTIATOR, BY RAISING TWO MORE ISSUES AS SOON AS ONE IS DEALT WITH. BUT WE ARE STILL CONCERNED ABOUT THE RESTRICTIONS PLACED ON ALLOCATION OF SPACE WITHIN THE NEW BUILDING. THIS IS A QUESTION OF BENEFICIAL USE OF OUR OWN PREMISES AND AS SUCH IS A SERIOUS POINT OF PRINCIPLE, QUITE APART FROM POTENTIALLY BEING A SERIOUS PRACTICAL INCONVENIENCE SHOULD OUR NEEDS CHANGE IN THE FUTURE. THE PRESENT WORDING WOULD PERMIT THE CONSULATE TO MAKE USE OF ANY SPARE SPACE WITHIN THE BRITISH COUNCIL'S 6,500 SQUARE METRE ALLOCATION, SHOULD THE COUNCIL NOT NEED ALL OF IT. BUT WE COULD NOT/NOT (WITHOUT RENEGOTIATING THE PTG) PERMIT THE BTC TO USE ANY OF OUR SPACE WHICH BECOMES SURPLUS IN FUTURE YEARS, NOR COULD WE ALLOCATE IT TO OTHER BRITISH GOVERNMENT BODIES (EG THE

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