TNAG-2960-FCO40-4239-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 80

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recently identified a space saving on their side of the building

that is large enough to house the FCO Procurement Unit. This is

helpful, but does not reduce the capital cost of the building.] Their operation in Hong Kong is currently profitable and they

propose further to expand their revenue generating teaching in the new building. They could afford to make some contribution if not in capital then in revenue terms. I appreciate that they may have other plans after 1996 for the funds they currently spend on rent for their Hennesey Road premises, but OED similarly had prior commitments for the funds which it is now proposing should pay for the cost overruns on the new building.

[We do not have figures for the rent the British Council

currently pay, but the British Trade Commission in much smaller

premises albeit in a more expensive area than the British Council, currently pay around £552,000 p.a. in rent and service

charges. In contrast an annual rent equivalent to the interest

charges over 50 years on £700,000 (the British Council's notional "share" of the current cost overrun) would be about

£45,000 p.a.] We all including the British Council should

expect to share the hardship under the current PES climate.

PF Ricketts

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