TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 36

10 December 1993

Mrs Barnes Jones awap out 14//2.

Hong Kong Department WH312

HONG KONG : NEW CONSULATE-GENERAL

CC:

125

Reference..

Mr Wootton, RFD Mr Elam, CRD

1. I attach a copy of my letter of 8 December which has now been forwarded to Treasury. You will see that, as agreed, the amendments suggested by the British Council, in para 3 of Mr Gunesekara's letter of 1 December to you, have been incorporated in my letter.

2.

It was also agreed, by you, RFD and CRD, that we should dispute some of the statements in para 4 of the British Council's letter under reference and that this should be in writing. I therefore attach a draft for your, and copy addressees consideration. I feel that it should go from either you or CRD.

In

3.

The draft only covers the last sentence of para 4 of Mr Gunesekara's letter. I had considered also disputing the second sentence about "the Council will not be able to meet an economic rent at any time". But on reflection this point is probably not worth arguing over unless the Treasury come back and insist on a rent element for the BC premises. these circumstances OED are likely to suggest a rent of £631,590 based on the 6% TDR formula (at current estimated construction cost): this compares with a market rent of £1.72 million approximately per annum based on the lower Wanchai rate of $25 per foot square per month for 66,087 ft2

(6,142m2) and exchange rate of 11.50.

Alen Ismitt

A D Smith

PPU/OED

Room 503/505 AP

760 8245

HUD 406

12

RECE

16 DEC 1993

CODE

018-0077

PJADS1.164

INUE.

12