TNAG-2660-FCO40-3856-Future-of-Hong-Kong-British-Consulate-General-1992 — Page 51

CODE 18-77

CONFIDENTIAL

Reference.

2. My fall-back option would be the Financial Secretary's House, if suitable.

3. Tactically, we should make maximum play of the idea that the logical move would have been for HMG to retain Headquarters House, but in view of the advice that to press this would lead to an impasse in the defence lands negotiations, which Hong Kong needs to bring to a successful conclusion, eg in order to start new development of prime land, we are willing to look at other proposals. The more we can convey the impression that we take it for granted that Hong Kong will want to give us appropriate house, the easier it will be to get it through.

4. Another way through might be if Mr Patten decides that Victoria House would be a more agreeable place to live than GH, he could perhaps move in after Sir D Ford goes, while still working and holding meetings in GH and using it for formal entertainment. Hong Kong would then have to produce a new house for the CS (future Secretary of Administration). Work could begin a little later on a new house for the future Chief Executive: ideally Mr Patten would move into this in 1996, so that SBTC could move into VH well before 30 June 1994. (But under this scenario, it is less easy to see how to play the Albany card. But if Mr Day is keen to move out, we could rent him something until VH becomes available and let the new CS take Albany when Mr Patten goes to VH.)

гою.

N J Cox

Hong Kong Department

12 June 1992.

cc. Mr Morris

Mr Woodrow

CONFIDENTIAL