TNAG-2961-FCO40-4240-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 42

See Cb

HKD 406/2

RECF

06 AUG 1993

Barnes Jones, HKD

CONFIDENTIAL

HONG KONG: NEW CONSULATE GENERAL

we suche

minuts

This BJ

Mr Mornis

67

PM's explenites spring to mind?

Yes, let's talks.

RFD putting a little clistena between themselves this puddlem! Can we speak.

27/1155.

OED/hongkg,bc

1. I have enclosed a copy of the Treasury's reply to my letter dated 5 July on the question of the British Council's contribution to the cost of the new Consulate General. You will see from paragraph 4 that Mr Marr did not buy the line we put so much work into perfecting!

2. We need to agree the way forward. Although the correspondence on this issue has been through me, HKD are in the lead on the project. I therefore suggest you invite interested Departments to agree an FCO approach and then hold discussions with the British Council before going back to the Treasury.

3. The basic options appear to be to undertake further work to establish a convincing case that the British Council have reason to use the building rent free or we must persuade the Council that they must make a contribution. Both of these options present difficulties.

4. Our earlier discussions revealed that the collective memory was clear that it had been agreed that the British Council would not need to pay rent in the special case of Hong Kong. However, RFD, OED, CRD, HKD and, as a last resort, the British Council themselves spent much time looking through their files for a definitive statement without success. It therefore comes as no surprise that Mr Marr states (in para 4) that the Treasury was unable to find any papers stating that this was the original intention.

I

5. The British Council have already reviewed their space needs in the new building and minimised their requirement. understand that they have also made it clear that they have no funds available for paying rent. One fact that would help in this respect is a clear statement of their current costs in Hong Kong (rent and running costs for the existing buildings) against the best forecast of ground rent and running costs in the new building. For the record I have enclosed a copy of the background note that the British

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CONFIDENTIAL