TNAG-2959-FCO40-4238-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 26

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MDHIAN 7882

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FM BTC HONG KONG

TO IMMEDIATE FCO

TELNO 41

OF 01113OZ FEBRUARY 93

TOL COPY Q DIST?

MIPT: FUTURE CONSULATE-GENERAL: RECURRENT COSTS.

1. WE HAVE SEEN NO FIGURES IN PAPERS REACHING US (E.G.THE RECORD OF THE STEERING COMMITTEE MEETING ON 6/1) FOR THE BUDGETING IMPLICATIONS OF THE BUILDING CUTS UNDER CONSIDERATION.

2.

WE KNOW, FOR EXAMPLE, THAT TO DELETE THE RESIDENTIAL ELEMENT OF THE CONSULATE GENERAL, WHILST GENERATING AN INITIAL SAVING OF 2.7 MILLION POUNDS WOULD RESULT IN LEASE COSTS OF 280,000 POUNDS PA (2.8 MILLION POUNDS AT CURRENT PRICES IN JUST TEN YEARS). SIMILARLY, THE DELETION OF ONE FLOOR ON THE CONSULATE GENERAL SIDE OF THE BUILDING, WHICH WE PRESUME TO INCLUDE ONE UNIT OF RESIDENTIAL ACCOMMODATION AND THE FCO PROCUREMENT UNIT, WOULD RESULT IN ANNUAL LEASE COSTS OF 146,000 POUNDS (1.46 MILLION IN THEN YEARS). THESE FIGURES DO NOT TAKE INTO ACCOUNT INCREASES IN RENTAL COSTS, CURRENTLY RUNNING AT APPROXIMATELY 20 PERCENT AFTER A TWO YEAR LEASE, INFLATION AT 9.4 PERCENT IN 1992 OR ANY COST IMPLICATION THAT THE REMOVAL OF A FLOOR ON THE BRITISH COUNCIL SIDE MAY HAVE.

3.

THE RECORD OF THE 6/1 MEETING QUOTES OED AS HAVING INFORMALLY DISCUSSED WITH MY MO THE DELETION OF THE MULTI-PURPOSE HALL. WE PROPOSED THE DELETION OF THIS IN JUNE AND ON SEVERAL OCCASIONS THEREAFTER, MOST RECENTLY IN MY MO'S FAX AT THE BEGINNING OF JANUARY, CLEARED WITH ME AND SENT FOR THAT MEETING. THERE ARE NUMEROUS REFERENCES ON OUR FILES TO THIS HALL BEING OF NO VALUE TO THE CONSULATE-GENERAL AND POSSIBLY A COST LIABILITY TO THE COUNCIL. AGAIN, THE RECURRENT COSTS ARE OUR MAIN CONCERN.

4. MY COLLEAGUES ARE KEEN ON M ORE PARKING SPACES BUT I LONG FELT THE PROVISION UNNECESSARILY LARGE BY COMPARISON WITH OTHER COMPARABLE BUILDINGS IN HONG KONG. THERE ARE SEVERAL PUBLIC CAR PARKS IN IMMEDIATE VICINITY. INDIVIDUAL SPACES RANGE FROM APPROX HONG KONG DOLLARS 18,000 PER YEAR AND DOLLARS 36,000 PER YEAR.

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