TNAG-2957-FCO40-4236-Future-of-Hong-Kong-British-Consulate-General-Colvin-House--1993 — Page 42

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B

for the full cost of equivalent reinstatement in alternative

accommodation of a similar standard - and all ancillary

expenditure incurred in such reinstatement.

We have sought to persuade the BLD to remove the references to depreciation and to the Director's discretion in deciding the

sum and to replace them with our preferred formulation. Our

proposed redraft or the clause (copy attached) defines

compensation as the full cost of equivalent reinstatement in alternative premises and allows for arbitration by an

independent expert if the two principals fail to agree on this sum within six months.

6.

The BLD, who have throughout sought to avoid straying from the standard wording for PTGS in Hong Kong, refused to accept our suggestions saying that this would deviate so far from established practice that it would need ExCo and possibly even Land Commission approval. For obvious reasons we should, if possible, avoid having to go to the Land Commission, which would almost certainly produce lengthy delay. Our view (endorsed by the Steering Committee on the future Consulate General), is that

we have not yet secured enough from the Hong Kong Government and

that we should now enlist the aid of the Constitutional Affairs

Branch to ensure that the problem is considered in a wider

policy perspective with HKG. If necessary, we may need to bring the Governor in at some point. We must secure protection for our investment in Hong Kong equivalent to that which we would

expect to receive from other countries.

ஓட்ட

PF Ricketts

fut.com.NAT.jrb

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