CODE 18-77
22 October 1992
J Morris HKD
Reference
pa 406/1
COLVIN HOUSE PTG
We discussed Russ Jarvis's letter of 16 October and I agreed to look again at the provisions of Special Condition 14 which deals both with the Grantor's right to determine the tenure and the Grantee's rights to compensation.
1.
2.
Miss Brooks and I agree that we would be far better off without the condition at all and I would suggest that we could very reasonably argue that all interested parties should accept the provisions of the Vienna Convention mentioned in Shelagh Brooks minute of 15 September as a compromise. It is quite unusual in my experience for a development of this nature to bear the contractural risks inherent in Condition 14. In this context I would mention that within the last month and, I believe for the very first time the Peking Diplomatic Services Bureau has unilaterally terminated the lease of one of our flats. This has caused us to review our traditional reliance on what is technicaly a very limited tenure in considering future capital expenditure. I would not suggest that this is an entirely valid comparison but it does show that the unexpected can happen.
3.
If it proves impossible to eliminate Section 14 in its entirety then I agree again with Shelagh Brooks that 14 (b) (i) and (ii) are irrelevant and should be removed. As to the remainder I enclose an annotated extract from the PTG as a draft form of words for you and Shelagh to consider.
s
D Savage
Manager Area One
CC: RT Jarvis BTC
Miss S Brooks Legal Counsellor
PCDS3.335
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