TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 141

Ms B-I Explained that trea

isn't.

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MND 406/2

Papere leading up to the

65

pu's decision to go His duilding Had w'd help wit the Treefury?

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(Ds bans Ins was ecord, a initiati

Mr Ricketts

Mr Hum

further nation.)

Cir 21/4

2 3 SEP 1993

OFFICEF

GISTRY

INDFROM: Deborah Barnes Jones Hong Kong Department DATE: 21 September 1993

cc: Mr Davey, CRD Mr Smith, OED

Mr Wootton, RFD

Mr Morris, HKD

faxed to Mr Smith, OED

BRITISH CONSULATE GENERAL IN HONG KONG: TERMS FOR BRITISH COUNCIL ACCOMMODATION

/

1. The Treasury have told us that the British Council must

pay rent for its accommodation in the new building (in addition to a pro rata share of running costs) in line with

practice elsewhere and to ensure that the British Council

receives no unfair subsidy to its non grant in aid activities.

We have told the British Council about this at desk level.

Mr Hum has agreed to flag this matter up with his opposite

number, Mr Davey. Mr Hum's meeting on 21 September at 1500 provides an opportunity to do this, and I attach suggested

points to make. But for the reasons set out below, I suggest that a separate meeting should be arranged with the British

Council to go over the implications of the Treasury demand in

more detail and to explore how we might negotiate with the

Treasury terms which will not prove too onerous for the

British Council.

Numbers

2.

OED's initial calculations suggested that even if the British Council were to pay rent calculated using Treasury guidelines in the new building they should still come out

paying about the same as they do for Henessy Road (but with a

high quality custom designed building). This is what I told Mr Hum when I discussed the way forward on 3 September. However, more detailed calculations of running costs indicate

that, were the British Council to have to pay rent at the rate

humbc.CONGEN.dbj

87