TNAG-2960-FCO40-4239-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 12

8.

We have carried out a risk analysis of the project: the main

risks are:

(a)

Escalating construction costs resulting from increased

activity in the local construction market once the

current political constraints on the new airport and

other work are lifted. If we can maintain our current

programme and invite tenders before construction costs.

escalate we could well be the gainers from particularly

competitive bidding for the contract.

(b)

PCAS3.784

The British Council's Direct Teaching of English

Operations could be vulnerable after 1997 e.g. closure of

the English classes by the Chinese. This would reduce

their requirements by 80% and would subsequently mean

that less than 2 floors of the proposed Council wing

would be needed for the remaining functions. The Private

(currently Treaty Grant for the Colvin House site/prevents us from

sub-letting any future surplus space to outside

If the RF proved verses of the PTG could not he re-vegokiaked, commercial companies. We could in theory, therefore, be

left with large areas of surplus space. But Hong Kong

Dept (FCO), consider that the risk, of political relatins

deteriorating to the point where the Council's operations

were jeopardised, is minimal. In the worst of scenarios,

could

it may be possible to convert surplus space to

residential use; and

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