TNAG-2967-FCO40-4246-Future-of-Hong-Kong-British-Consulate-General-inclusion-of--1993 — Page 12

BOHONG RUNG

ния

FAX TRANSMISSION HUD

Our Reference:

25 October 1993

PF Ricketts Esq

HKD

FCO

Fax no

Page 1 of 2

RECE

LM

INJE/

MON 25 OCT 93 09:47

Vo

6/13

RESTRICTED

219 OCT 1993

Godine!

My Wood

#f. c. to CED! sence. Mr Bertram, Molinine)

Lest

me

Know where t

conndation & costs is

reaching. Fco Corums 27/10

525/10

ран

PG.03

British

(4

Trade Commission

Hong Kong

9th Floor, Bank of America Tower, 12 Harcourt Road, Hong Kong

Mail Address: GPÓ Box No 528, Hong Kong

Telephone: 523 0176

Telex: HX 73081 (a/b 78031 UKTRA HX) Facsimile: (852) 845 2870

please pass. Bu Min Barnes Joues o/r

Cable Address: UK TRADE, Hong Kong

48

Dew Peter

BRITISH CONSULATE-GENERAL/BRITISH GENERAL CHAMBER OF COMMERCE

1. I said in my letter of 14 October that the next step would be a meeting between Mr Needham and the Chamber's Chairman, Deputy Chairman and Hammberbeck.

2. In the event they scarcely touched on the subject of co-location. Mr Needham said simply that, by the way, he would be prepared to have a battle with the Treasury on behalf of the Chamber. Messrs Chiu and Courtauld replied that they had taken that as read!

3. But I spoke subsequently in some detail to Chiu and to some other Chamber members. As a result, I think that their position is about as follows. As the Chamber's committee has already voted in favour of the principle of co-location, they will not want to revisit that unless something dramatic was to happen. So the key factor is likely to be the question of

costs.

On that score, Chiu and some others believe that the British Chamber has done so much for our trade that we ought to show our gratitude by being generous over the rent. This unrealistic thought mingles with the lingering memory that one of my predecessors said something which was taken as a promise to secure space rent-free. I think most now accept that this was a misunderstanding. But nonetheless, they find it a bit difficult to dismiss the thought entirely.

5. The more sensible point to another factor. A number of western firms are beginning to move their offices away from Central (where rents are already up around HK$50 per sq ft) to Wanchai, Causeway Bay and other locations where the rent may be half that. Inchcape, Shell and some others are going. Chamber members whose firms have moved in this way would find it very difficult to see why the Chamber itself should pay to live in a style which most of its members can no longer afford for themselves.

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