RESTRICTED
B
equivalent accommodation. For this reason the "depreciation" formulation in the Hong Kong draft is unacceptable. We have sought to persuade the BLD to remove the reference to depreciation and to replace it with our preferred formulation. This (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.
6. The BLD, who have throughout sought to avoid straying from the standard template 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 would wish to avoid going to the Land Commission so as not to risk giving the Chinese any further levers to use against HMG. Our view ́ 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 see whether there there is flexibility at a higher level on the points that concern us.
PF Ricketts
RESTRICTED
chetused
(after discussion
The Steering Conguitle for the future
Consulate General)
No comments yet.
Private notes are available after approval.