TNAG-2663-FCO40-3859-Future-of-Hong-Kong-British-Consulate-General.-With-photogra-1992 — Page 24

STAFF IN CONFIDENCE

5.

The alternative property recently identified by Mr Day is a

penthouse on the 26 and 27 floors of a large modern development

overlooking Repulse Bay on the South side of Hong Kong Island.

It appears on plan to be suitable. The rent including service

and parking charges is about £155,300 per annum. A decision is

required by early January.

Argument

6.

The Albany is well located in Central Hong Kong. The quoted journey times to Repulse bay of 15 minutes to 20 minutes appears a minimum. From a functional point of view the arguments appear to be finely balanced. HKD's view is that in representational

terms there is little to choose between a flat in Central and a

flat in Repulse Bay. The properties are roughly equal in prestige although the Repulse Bay flat may have slightly more flexibility in that it has a roof garden and considerably more parking spaces for visitors.

The only type of accommodation which would offer significant representational advantages would be a detached house; but this is not what is under consideration

at present.

7.

From an estate management point of view there is no benefit

in moving. Running costs will be much the same while there

would inevitably be considerable additional capital expenditure involved both in fitting out the new accommodation and possibly also in surrendering of The Albany lease. The landlords (Swires) are legally entitled to ask for reinstatement and

dilapidations plus rent until a new tenant takes over. SBTC

argues that Swires would let us out of the leas gratis; that may

be so, but we cannot know unless we explore the points with them. We would not wish to do so (given the potential

embarrassment) unless there was a good case to move.

THIS IS A COPY THE ORIGINAL HAS BEEN

CLOSED UNDER

FOI EXEMPTION NO. 40. (2)

hk.res.JM

SLM

STAFF IN CONFIDENCE