TNAG-2967-FCO40-4246-Future-of-Hong-Kong-British-Consulate-General-inclusion-of--1993 — Page 38

03-AUG-1993 15:31

OED FCO APOLLO HSE

CODE 18-77

2 August 1993

Ms D Barnes Jones

Hong Kong Department

cc: Mr Neate

081 760 8152

P.02/02

37

Reference

·HKD

406/15

RECEIVER IN RE:

02 AUG 1993

DES DEFICKE

INDE

ISTRY

14 Tameter

|HONG KONG BCG; ACCOMMODATION FOR BRITISH CHAMBER OF COMMERCE

1..

As agreed by the Steering Committee I took the

opportunity while in Hong Kong on 26 July to explore with the Chamber of Commerce and lawyers Johnson Stokes and Masters ways of meeting the wish to provide accommodation for the Chamber in the new BCG building having regard to the terms of the Private Treaty Grant Special condition 13.

a

2. I met Barrie McWhirter Executive Director of the Chamber and William Courtauld or Jardine Pacific Ltd for an informal, off the record, discussion (Mr Chiu was unable to attend). The Chamber would be quite content to have their use of accommodation in the BCG recorded in a non registrable licence on the assumption that in doing so they would enjoy security for a reasonable period based on an understanding between the parties, convenience and economy. ↑ made it clear that I was not able to discuss 'per se' the principle of whether BC of C should pay rent. However I explained the basis upon which licence fee would be calculated, i.e. six percent on the apportioned cost of construction, actual utility/service costs plus any premium that might be demanded by the Grantor for a variation of the PTG. I gained the impression that it is Common to potn parties that a solution which avoids recourse to the JLG is to be preferred. The Chamber would be very ready to use their contacts with HKG to find an informal solution if we wished. I assured McWhirter and Courtauld that they would be kept informed of our intentions.

3. Mr Rupert Neville of Johnson Stokes and Masters was of the view that although a licence as proposed does not infringe the Grant it could be viewed as being contrary to its spirit. Given the political background he recommended an informal approach to the Building and Lands, avoiding putting the question to the JLG if at all possible.

PCDS4.

24