TNAG-2961-FCO40-4240-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 85

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Our Ref:

Your Ref:

7 June 1993

•

Mr B G Marr

CC Mrs Barres Joves (for a record)

HID

12716 11/6

DM. Mathis to me 2) M-Wooow oir please speak - I'll update

Foreign & Commonwealth

Office

Overseas Estate Department

Apollo House

36 Wellesley Road

Croydon

Surrey, CR9 3RR

Telephone: 081-760- 8245

Facsimile: 081-686 4951

HM Treasury

Parliament Street

London SW1P 3AQ

you

3 pa lolo

nis]

HICD 406/2

RF

17 JUN 1993

}

जे

SI

Dear Brian,

HONG KONG: NEW CONSULATE-GENERAL

1.

Ifv.

We have now reached the stage where we require Treasury agreement to proceed with the construction of the new Consulate General in Hong Kong at a maximum total estimated cost of £27.55M. We remain confident that the scheme represents excellent value for

money.

2"

As you are aware, the background to this project is that the Prime Minister and FCO Ministers decided in 1990 on the construction of a substantial building in Hong Kong to house Britain's official representation after sovereignty reverts to China in 1997. Ministers have concluded that Britain should colocate its official representation, including the British Council, in such a building. We plan that the building should be ready for occupation by July 1996.

3. The route taken to reach this conclusion started with consideration of various options including joint (or developer) ventures with Hong Kong development companies; buying a building that would suit; buying and converting a building; leasing a building; acquiring a site and building on it. The facts indicated that all these options would cost 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 terms. Negotiations were complicated by the necessity for Chinese agreement to the grant. After a long haggle, during which several sites were considered and agreement with the Chinese reached, HMG accepted the Hong Kong Government offer of the Colvin House site (which has an excellent central location) at no capital cost. This outcome was summarised in the Foreign Secretary's 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

PCAS3.784

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