TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 116

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The difference between our present costs and the projected running costs (£300,707) may meet the perceived Treasury requirement of a return on the 4245 square metres. However any agreement on this will need to include acceptance by FCO to meet the costs relating to the items under (b) above, and allow for the payment to vary according to the amount of space the Council expects to use, on an annual basis. I understand that these conditions are implicit in the Memorandum of Understanding currently being negotiated between the Council and OED to govern the Council's general use of OED buildings overseas. The one exception would be the rates, which would need to be specially agreed in this case.

I hope this information helps in your deliberations.

I will be away on tour from the end of this week until the beginning of November, but if you need to discuss this further Julian Davey will be back in the office from the 19 October.

Yours sincerely

Romesh Gunesekera

Assistant Regional Director

East Asia and Pacific

CC:

CC:

Mr S Whittle, OED

Mr J Neate, OED