TNAG-2967-FCO40-4246-Future-of-Hong-Kong-British-Consulate-General-inclusion-of--1993 — Page 110

Miss Brooks

Legal Advisers

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O 5 MAY 1993

Reference

FUTURE CONSULATE GENERAL HONG KONG: SPECIAL CONDITION 13 OF PRIVATE TREATY GRANT

One

1. On present plans, the British Chamber of Commerce will be allocated space within the new Consulate General. Whether or not this goes ahead will depend on a policy decision confirming (or not) the offer to the Chamber of Commerce. element which we need to consider is how we can reconcile the need, given the present stringent PES climate, to get paid a commercial rent for the facilities on offer, with Special Condition 13 of the Private Treaty Grant "Alienation" which reads as follows:

"Unless the prior written approval of the Director is obtained the Grantee shall not assign, mortgage, charge, demise, under-let, part with the possession of or otherwise dispose of or encumber the lot or any part thereof or any building or part of any building thereon or enter into any agreement so to do, except in so far as the provision of accommodation for and permitting the British Council to Occupy the same for its official activities shall not constitute a breach of this Special Condition."

2. OED as the corporate memory - confirm that the question of financial arrangements for facilities in the new Consulate General have so far been flagged up rather than discussed in any detail.

I anticipate that Mr Hum's Steering Committee will be asked to look again at the question of housing the British Chamber of Commerce within the new Consulate General Building both in light of the MRS review now underway and because the Chamber of Commerce lobbied Mr Needham on a recent visit to Hong Kong for more space than they have provisionally been allocated. They are also anxious for details of what the conditions for their accommodation within the building would

be.

3. I would welcome your advice on what room for manoeuvre we have. Putting aside for the moment the question of charging for house room for the Chamber of Commerce, how might we characterise their presence in the building in a way which would not necessitate the prior written approval of the Director as set out in Clause 13? On renting, by whatever name we call it at the end of the day, could you comment on what is

spec.cond.NAT

CODE 18-77

SLM