TNAG-2960-FCO40-4239-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 78

£700,000

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4.

It is worth bearing in mind that the British Council will be expanding their lucrative ELT operations in Hong Kong once they are in the new building. No doubt they have already earmarked uses for this enhanced revenue. But in the current bleak PES climate, I think we are entitled to probe this argument pretty hard.

5. I do not disagree with Mr Bertram's recommendation and believe it important that we should get on with the next stages of this project. I propose that the Minister of State be invited to approve the recommendation subject to a further effort, perhaps by Mr Muir or RFD, to negotiate a contribution from the British Council towards the increased costs of the building - perhaps in the form of an increased contribution to running costs from 1996. One basis on which this could be calculated would be a repayment over a defined number of years of their share of cost overrun (some £700 plus some interest).

PF Ricketts

hum7.4cg

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