TNAG-2967-FCO40-4246-Future-of-Hong-Kong-British-Consulate-General-inclusion-of--1993 — Page 6

2-NOV-1993

16:05

CODE 18-77

Reference.

P.03

will be £56,160 per annum. OED therefore consider that the market rent based on the cheaper localities is more justifiable for a NGO given that you wish to encourage the BCC to colocate in order that Minister's intentions are complied with and there will be benefits to the FCO in the colocation. In addition there would be some onerous lease terms e.g. short notice termination, which would have to be imposed on any NGO user of the building. In these circumstances full normal commercial lease terms would not be applicable and therefore rent could be below the open market for the area. Before any decision is taken to apply a below market rate for Central District I assume that you, in liaison with RFD and Joint Directorate, will assess the possibility of criticism on political, subsidy and unfair competition grounds.

2. In addition to the rent charges, which should be index linked to UK inflation and the service charge, we would expect the Chamber to pay any premium that might be demanded for a variation of the PTG and their proportion of any Rates (if applicable). The above does not cover any use of other CG facilities such as Commercial Section's

Conference/Exhibition areas: any necessary charges for the use of such facilities is down to Post to agree with the Chamber. The BCC will also be responsible for procurement of their own furniture and fittings which must be to UK standards.

Alex Smith

A D Smith

PPU

AP Rm 503

Ext 8245

CC:

Mr Wootton RFD

PCAS4.256