TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 34

16 December 1993

Mr Romesh Gunesekera

British Council

Foreign & Commonwealth

Office

Miles 406/2

London SWIA 2AH

Telephone: 071-

10 Spring Gardens

London SW1A 2BN

REC

16 DEC 1993

Dear Romach,

INULA

126

HONG KONG CONSULATE GENERAL: COLLOCATION OF BRITISH COUNCIL

1.

2.

Thank you for your letter of 1 December.

121

I now attach a copy of Alex Smith's letter of 8 December to the Treasury. You will see that his letter fully incorporates the amendments suggested in paragraph 3 of your letter under reference. We must hope that these will satisfy the Treasury and we will let you know as soon as we receive a

response.

3.

124

Whether or not the Treasury gives us approval for the remainder of PES funds for the project, I must put on record the concern caused us by the last sentence of your paragraph 4. This states that the Council can at no time undertake to consider going above the present cost ceiling. We are anxious to ensure that the British Council is in no way penalised for collocating with the FCO in line with Ministers' wishes. Nevertheless, it is only realistic to put in place arrangements to cover future payments which will take into account circumstances such as size of operation, inflation and so on when calculating the amount to be paid by the British Council in years to come under the terms of a Memorandum of Terms of Occupation (MTO).

It.gunesek14.NAT

JEB