TNAG-2961-FCO40-4240-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 35

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He would recommend incorporation if it was decided that whilst the non revenue earning parts of the operation should be located within the Consulate-General, the revenue earning parts could not be within the Consulate-General complex.

If it was decided that the whole of the Council operation should be outside the Consulate-General then he would recommend the registration option.

In the case of both the incorporation and registration options local legal advice would be required.

6

TIMING

A subsidiary point that needs to be borne in mind is that whilst the Land Commission has still to approve the Land Grant for the Corsulate-General complex, OED is having to proceed with planning, including financial planning, on the basis of premises, as agreed by Ministers, with about 30% of the space allocated for a full British Council operation.

Clearly, if major nugatory expenditure is to be avoided, a decision on the location of the Council post 1997, which itself may depend on the best status to pursue, will need to be taken before OED's planning process is Cumplete.

7 I do hope this gives you sufficient information for you to pursue the

question within the FCO and with the Hong Kong Government.

yu

R

E C PUGH

Head

Asia and Pacific Department

cc. Peter Holmes, CRD, FCO Derek Savage, OED, FCO David Thom, Legal Adviser Director HONG KONG

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Director APAD