TNAG-2959-FCO40-4238-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 64

CONFIDENTIAL MANAGEMENT IN CONFIDENCE

045007

MDHIAN 5190

A)

THE CAR PARK ON THE BRITISH COUNCIL SITE, AND B) ONE FLOOR THROUGHOUT THE BUILDING.

WE SHOULD THEN ATTEMPT AN ASSESSMENT OF THE LONG TERM COSTS (E.G. COST OF PRIVATE PARKING PLACES, COST OF OUT HOUSING FCO PROCUREMENT) IN ORDER TO CALCULATE THE NEXT SAVINGS.

7. IN HIS MINUTE OF 10 DECEMBER, ALEX SMITH SUGGESTED THAT IT MIGHT BE POSSIBLE TO FIND A FURTHER 5 PERCENT SAVINGS WITHOUT SIGNIFICANT CHANGES TO THE SOR OR TO THE CURRENT DESIGN. IT WOULD BE HELPFUL TO KNOW WHAT CONCLUSIONS WERE REACHED ABOUT SUCH SAVINGS, WHICH COULD BE WORTH BETWEEN POUNDS 1 MILLION AND POUNDS 2 MILLION.

8.

WE ALSO WONDER WHAT THE GENERAL POLICY IS ON COVERING ADDITIONAL COSTS ARISING FROM DEVALUATION OF STERLING. AS ALEX SMITHS FIGURES SHOW THAT DEVALUATION FROM POUNDS 13.5 TO 12.4 ACCOUNTS FOR POUNDS 2 MILLION. SHOULD NOT THE TREASURY BE ASKED TO COVER THE FULL AMOUNT QUERY.

9.

WE LOOK FORWARD TO RECEIVING THE DATA REQUESTED ABOVE, AFTER WHICH WE WILL OFFER FURTHER COMMENTS AND SUGGESTIONS AS APPROPRIATE. IN THE MEANTIME, THE SECRETARY OF THE COMMITTEE HAS SENT SOME QUICK COMMENTS TO ALEX SMITH (HIS FAX OF 5 JANUARY).

10.

FINALLY, I SHOULD LIKE TO FLAG UP TWO WAYS IN WHICH I THINK CO-ORDINATION BETWEEN US COULD BE IMPROVED:

(A) COULD COPIES OF THE STEERING COMMITTEES PAPERS AND MINUTES BE SENT TO US AUTOMATICALLY FOR INFORMATION, AS AGREED EARLIER:

(B) COULD THE LOCAL PROJECT MANAGER BE AUTHORISED TO BRIEF US FROM TIME TO TIME ON DEVELOPMENTS (PERHAPS WE COULD HAVE A COPY OF THE AGREEMENT WITH SWIRE PROPERTIES SO THAT WE UNDERSTAND THEIR ROLE):

(C) COULD FURTHER CONSIDERATION BE GIVEN TO THE SECONDMENT HERE OF A UK BASED OFFICER, PERHAPS FROM OED, WHOSE JOB WOULD BE TO SERVE AS AN INTERFACE BETWEEN YOU AT THE LONDON END AND THE 'END USERS' REPRESENTED BY MY COMMITTEE, AS THE BALANCE OF WORK WILL UNDOUBTEDLY SHIFT HERE THE SAVINGS WHICH SUCH A SECONDEE COULD IDENTIFY WOULD AMPLY REPAY THE COSTS INVOLVED AND IT WOULD ALSO MAKE IT EASIER