TNAG-2957-FCO40-4236-Future-of-Hong-Kong-British-Consulate-General-Colvin-House--1993 — Page 16

2 February 1993

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Mr M C Sze

Secretary for Constitutional Affairs

Central Government Offices

Hong Kong

PRIVATE TREATY GRANT FOR THE COLVIN HOUSE SITE

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I am not sure to what extent your office has been tracking

progress on the negotiations between the British Trade Commission (BTC) on behalf of HMG and the Building and Land Department (BLD) over the terms of the Private Treaty

Grant (PTG) for the Colvin House site. We have resolved

various problems over the last year, but differences remain which cause us considerable concern and which prevent us from agreeing to the PTG as now drafted. Preparation of the site for construction is scheduled to start in April; we are of course anxious that an agreed text be ready for signature as soon as possible by early March at the latest. With apologies for burdening you with these complications, I am writing to explain our difficulties and to ask for your advice and assistance in moving things forward.

Briefly, our main problem is that the PTG as now drafted would not provide what we judge to be adequate protection in the event of future expropriation. Special Condition 14 of the PTG deals with this subject. In examining the PTG we have

colvin.NAT

JEB

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