Design team when needs have arisen. I anticipate that these practices will continue throughout the project. The OED professional advisory team provide me with support and advice as necessary. There will be a need for continual site supervision during construction and suitably qualified site control staff, reporting to PM, will be resourced from within the existing consultant team.
8.
Your letter of 22 July to Alan Wootton asked us to review the question of financial arrangements with the British Council. The background to the assumption that the British Council should not pay rent stems from the Ministerial decision in 1990 that co- location in a high quality building was the best way to demonstrate Britain's commitments to and interest in Hong Kong after 1997. understood that Treasury acceptance of our total PES bid for the co-location of the Consulate-General and the British Council meant, in practical terms, that the capital cost of creating the British Council space would be funded from capital to be dedicated to the Council's specific purpose in Hong Kong after 1997 and that no rent would be payable by the British Council.
9.
However, as you pointed out in your letter under reference, the Council would be making a saving (on the cost of their operations in their present premises at present estimates) if they were only to pay for their share of running costs once they moved into the new accommodation. This saving would, in effect, be an additional subsidy to the British Council and we recognise that this should not occur. The FCO has therefore discussed this with the British Council. The British Council accept that they should not make savings and have agreed that should outgoings on the new building be less than the rent and outgoings in their present premises, they will surrender the savings to the FCO. The details of this arrangement will be incorporated in a Memorandum of Terms of Occupation (MTO) to take effect from 1 July 1996.
10. This letter has been seen and agreed by RFD and our Economic Advisers.
Yours sincerely
Alen Osmitt
A D Smith
PPU/OED
PJADS1.92
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