TNAG-2957-FCO40-4236-Future-of-Hong-Kong-British-Consulate-General-Colvin-House--1993 — Page 11

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sad point.

Secondly,

to

while we are not required technically to Commission on individual conditions of

are obliged to make quarterly returns of

consult the Land grant, we variations

lease documents to the Land Commission.

The proposed variations to the BCG grant could be regarded as a material

departure from the standard conditions previously approved by the Land Commission. They would come within the scope of the returns we make and the variations would therefore соде to the attention of the Chinese. In any event, land grant documents go into the public

domain after execution and

Chinese would be able to have access to them. We think there is a real risk that the Chinese might object to the FCO's formulation as they would see it as committing the future SARG to obligations more onerous than those found in other PTGS. The Chinese might even threaten to disown the land grant on the grounds that they have not been consulted over such variations. (Indeed, it is not possible to rule out entirely an adverse reaction to more moderate variations which we might find acceptable.)

only

Thirdly, the Chinese might also argue that compensation on the basis of "full cost of reinstatement in alternative accommodation" etc. would conflict with JD 86 and BL 105, which provide

for compensation corresponding to the "real value of the property concerned". While such provisions may be open to different interpretation, We think it would be prudent not to give the Chinese

an excuse to tear up the BCG land grant on the pretext of an apparent breach of the JD/BL.

In view of the practical constraints described above, we are strongly disinclined to accept any proposals which would clearly require ExCo approval or on which the Chinese in the

might have a reasonable expectation of consultation Land Commission or JLG. Given that we are dealing with a building that will become a consulate-general on 1 July

1997, We think We will be in a much stronger position if we could demonstrate that the variations incorporated in the BCG grant conditions are required to foin enable US fully to comply with the relevant provisions of Convention on Consular Relations of 1963, which

urely?

the Vienna

are binding on both the UK and the PRC.

Having consulted the Governor, we think that an acceptable compromise proposal that should meet your legitimate concerns should contain the following elements :

acceptance of a period of 24 months notice, unless the parties agree a shorter period;

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