TNAG-2961-FCO40-4240-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 95

XAHKN36

RECEIVE

Ни

KN 363 1/1.

Samage. 8/17/6

CONFIDENTIAL

لمة 31/1

20 JUN 1990

DESY O

INDEX

PM/90/037

:

PRIME MINISTER

ce

PS/Mr Miuide Psliad Brabazon

PUSD (CN) PSIPOS

Hcl Security

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Ha POD на

Mr Fifoot- Legal

Adusels

SAK

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Mr McLovel

Chust Clerk

•Mr Blatheruuk

Mr MOSS

My Bums

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Ita OEA Migle на сев Ha MVD Ha RMD HO FED

Future British Consulate-General in Hona Kona

1.

During your meeting with the Governor of Hong Kong in February 1989, you agreed that it was important for future confidence in Hong Kong that Britain should be seen to acquire a substantial building on a prestigious site for its official representation. You recognised that this would inevitably be expensive but that the costs would have to be borne.

2. We have conducted extensive and robust negotiations with the Hong Kong Government, with the aim of achieving

our agreed objectives. We have now made substantial

progress.

3. As you know, HMG own no property in Hong Kong. had to acquire land and construct a suitable building at full market prices, the cost would be well over £40 million at current prices.

If we

4.

Accordingly we have pressed Hong Kong to give us markedly preferential terms, in the form of a free grant of land. A few months' ago, it would have been very difficult to persuade Exco to accept this. The Governor now recommends that we should take advantage of the

CONFIDENTIAL