TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 103

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what the formula would be and how the performance of the revenue earning funcition would be measured. At this stage it is the principle we are attracted by.

4. At our meeting we recognised that we would need to consult you first on whether this approach might run with the British Council. We also recognised that it might take some time to get an answer from the British Council. We need to discuss the question of arangments for the British Council with the Treasury within the next two weeks in order to gauge the extent of Treasury objections to the arrangements as explained to them to date. (We are presuming that the Treasury will not be prepared to give final agreement to the commitment of the funds for construction of the building until this is sorted out). We therefore propose going ahead with a meeting at working level with the Treasury. This meeting (which we plan should include a British Council representative and should take place during the week beginning 22 November) would not raise this new suggestion but would set out the position as we see it. (I attach a rough draft speaking note for FCO officials which we discussed in our meeting and which needs considerable work but will give you the flavour).

5. Grateful if you could let us know quickly whether you are prepared to sound the British Council out on this.

IN Bannes Domes

Deborah Barnes Jones

Hong Kong Department WH 312

7

270 2068

November, 1993

cc Mr Wootton RFD, OAB 2/119

Mr Smith, OED

bcc.0411.CONGEN.dbj

CODE 18-77

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