TNAG-2957-FCO40-4236-Future-of-Hong-Kong-British-Consulate-General-Colvin-House--1993 — Page 56

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J C Morris

Hong Kong Department 5 January 1993

Mrs Barnes Jones

Miss Brooks

Mr Savage, OED

Mr

Ricketts Minute

Mr Hum

det 57;

PRIVATE TREATY GRANT

HONG KONG FUTURE CONSULATE GENERAL:

(PTG)

1.

Mrs Barnes Jones' minute analyses the problem of Special Clause 14 of the PTG. In essence, Hong Kong Buildings and Land Administration (BLA) maintain that the amendment we seeking would create a precedent and would require ExCo (and possibly even Land Commission) approval. BLA are therefore not prepared to go beyond their latest redraft of SC14. OED regard this redraft as failing to give HMG adequate financial protection, and as constituting "a most unusual basis on which to proceed with an important or costly development" We need to take a policy decision: either -

2.

a) to accept what Hong Kong Buildings and Land Administration are prepared to offer; or

-

whose aid

b) to attempt to go over Buildings and Land's head (initially to Constitutional Affairs Branch we sought earlier to good effect and ultimately to the Governor, if necessary).

I

I recommend that we explore the matter with CAB. would hesitate to burden the Governor. We may eventually conclude that, in the present circumstances, it would be politically difficult to secure all we want, and that we should sign now and seek to renegotiate with the HKSARG in due course. But I think we should first establish whether there is any more flexibility at the policy level in HKG.

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Thonia

J C Morris

HKCD 406/1

REC!

12 JAN 1993

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