TNAG-2967-FCO40-4246-Future-of-Hong-Kong-British-Consulate-General-inclusion-of--1993 — Page 13

NG KONG

MON 25 OCT 93 69:49

PG.04

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6.

I have told Chiu that he and his members can drop any notion that HMG will agree to subsidize the Chamber, whose members include some of the most profitable companies in the world. They will certainly be expected to pay their share of the costs. I think that Chiu now accepts this and, if he does, so will most of the influential members. But the question still remains how the rent and costs formula we propose will compare with what individual members are at that stage paying for their own office space. So I hope that the Department and OED can sort out soon which formula we shall use and what broad figure it produces.

7. I cannot rule out that if we end up with a fuss about costs within the Chamber, some of them may wish to re-examine the wisdom on political grounds of co-location, particularly if a controversy about money was to coincide with a deterioration of the atmosphere between China and Britain over Hong Kong.

you eve

Francis Cornish

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