TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 70

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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and the only other realistic option i.e. renting.

As stated in para

3 of my letter to you of 7 June 1993 we fully appraised in 1989/90

other options and all those that included land cost elements remain

relatively much more expensive in comparison with building on the

free Colvin House site. The reasons for discarding other possible

+ option remain as explained in para 7 of the letter of 7 June 1993.

The summary below of the build and leasing options serves to

demonstrate conclusively that building is still much the more

economic solution:

Build new Offices (all Consulate-General

and British Council) and

7 UK staff flats

Lease new Offices (Consulate-General and

British Council) and

7 UK staff flats

.NPV £32.8m

Appendix A

NPV £77.7m

Appendix B

4. We have carried out a further risk analysis of the project and

conclude that those identified in para 8 of my letter of 7 June

will continue to be the main risks.

5.

Our Ministers have accepted our proposed course of action to

proceed with the project at a total estimate cost within £29.0

million. I should be grateful for your agreement to proceed as

soon as possible. Time is important in order to keep to programme

for occupation by 1 July 1996.

PJADS1.92

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