TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 57

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FAX 071 389 4141

BRITISH COUNCIL

Ou

HKG/680/1

Your ref

071 389 4810

Direct line.

071 389 4141

Direct fax.

The British Council

2001 002

Mrs Deborah Barnes Jones

Hong Kong Department

FCO

London SW1

HUD 406/2

RE

1 DEC 1993

124

INJE,

Promoting cultural, educational and technical co-operation between Britain and other countries

10 Spring Gardens

London SW1A 2BN Telephone 071-930 8466 Telex 8952201 BRICONG Fax 071-839 6347

1 December 1993

cc Mr Bertram DED

Mv

Wootton RFD

کے

Mr: Ochenden Financial Advisers

Den Debat

NEW BUILDING

Thank you for faxing me the draft letter to the Treasury.

We think that paragraph 8 in the letter puts forward our agreed position, and is indeed both accurate and powerful. Paragraph 9 however appears to take away from the force of the main argument by introducing the notion of a rental agreement. It seems to us that this paragraph should be dispensed with entirely, and this would be consistent with the approach you identified in your note to OBD of 4 November.

If, however, you feel that some mention of the arrangements with regard to Council costs has to be made, then we suggest you amend paragraph 9 to read as follows which makes clear our present understanding,

'However, as you pointed out in your letter under reference, the Council would be making a saving (on the costs 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

they should

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.'

Registered in England as a charity no. 209131

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