TNAG-2960-FCO40-4239-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 49

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buying a building that would suit; buying and converting a building; leasing a building; acquiring a site and building

on it.

All these options looked like costing in the £70/100M range. FCO Ministers subsequently brought pressure on the Hong Kong Government to grant the British Government a suitable site on preferential term. Negotiations were complicated by the necessity for Chinese agreement to the

grant. After a long haggle, during which several sites were considered and the Chinese squared, HMG accepted the Hong Kong

Government offer of the Colvin House site (which has a

prestigious central location) at no capital cost. This

outcome was summarised by the Secretary of State in his minute

to the Prime Minister of 17 June 1990. The Prime Minister

thought this a good outcome as did the Chief Secretary (copies

of exchange of minutes attached for ease of reference). The

Private Treaty Grant (PTG) which allows us the use of the Colvin House site was formally signed on 15 April 1993: title

to the site will revert to the Government of China in the

event that HMG has no further need for it.

[Present para 2: leave unchanged. NB typo in "commission" in line 1].

[Slight revision to present paragraph 3 see below re-draft

from sentence now finishing" reduction of British

Council's classrooms from 30 to 23".]

As a result the size of the buildings has now been reduced

from 10 to 9 storeys and the revised total estimated cost now

stands at £29M. (The estimate has been prepared by the Consultant Quantity Surveyors Widnell). Farrell have now

produced revised PSDs to take account of the above changes.

Farrell's revised drawings maintain the quality and

operational efficiency of the buildings. We therefore instructed Farrell in March 1993 to progress their proposals

cons.gen21Apr.NAT

JEB

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