TNAG-2962-FCO40-4241-Future-of-Hong-Kong-British-Consulate-General-building-incl-1993 — Page 85

1113

ནྡྷ} པ

Reference.........

Thanks. (Through Ricketts I think?)

Март

MVD 406/2

Mr Wootton, RFD

23 NOV 1993

Mr. Mais

12/11

متحد

I'll now

put Me theme

in the picture

ше

discussi

に

اسف

KAT KI11

12/11.

HONG KONG CONSULATE GENERAL: BRITISH COUNCIL CONTRIBUTION

1.

Please see Mr Elam's minute to me and Mr Bertram's minute to me both of 11 November.

2.

I outlined to you on the 'phone today OED's latest thoughts ie. backing away from a meeting now with the Treasury. Mr Bertram has now gone into print. I am content with what he suggests - the meeting with the Treasury was in any case an OED initiative. I agree that Mr Smith should go ahead and draft to the Treasury; as Mr Bertram recognises, CRD and the British Council will need to be consulted on the text to be sent.

3.

According to Mr Bertram's suggestions, the letter to the Treasury would not need to go into the question of how future payments by the British Council would be arrived at. OED now seem to have moved away from their initial suggestion of tying the British Council contribution after an initial settling down period to the success of the English language teaching operation. Rather, he is suggesting that rent would be based on the Treasury formula for an economic return on capital expended i.e. 6% TDR indexed to UK inflation. The (perfectly sound) argument is that the rent that would be charged by the FCO would be less than the British Council could obtain anywhere else for acceptable accommodation because the site came to us cost-free.

4.

Mr Elam's approach is rather different it is in fact a variation on the earlier OED suggestion of a review which would look at the health of the English language teaching operation. Mr Elam goes for a review dependent on movement in the Hong Kong market for rented property.

5.

Either way, we are looking at some kind of review procedure and at the British Council paying more money over at some point in the future. I am not sure whether we need to unite FCO Departments behind one approach before talking again to the British Council or tell the Council about the various options that have occurred to us and let them consider what line of argument they find most attractive. Any thoughts?

6.

Mr Gunesekera telephoned me from the British Council to ask where matters stood. I have explained to him that, while we feel a meeting with the Treasury may well be necessary further down, the road, for the moment we are concentrating on

min.bcgontri.NAT

JEB

CODE 18-77

115