CODE 18-77
We
groke
Reference
• poke to David Popplestone in RFD. Wait for Alex Smith's calculation, then discuss further
158
Mr Morris
CONSULATE GENERAL:
1.
CHAMBER OF COMMERCE
I have been trying to establish what rent we would need to charge the Chamber for space in the new building so that BTC can discuss the framework with the Chamber and find out whether they want to pursue the project.
2.
54
Mr Smith's minute of 12 November laid out OED's understanding of the basis for calculating rent charges for the Chamber (there would have to be other charges too - for services and use of facilities in the building beyond their 200 sq m
this minute does not touch on these additional costs). RFD comment in Mr Wootton's minute of 17 November.
3. His advice is that we will need to increase the base charges to take into account depreciation of the building and a "land return". The first seems justifiable (and not too expensive) but the second sets off alarm bells. I suspect that adding in this element would be bound to escalate the cost to the Chamber beyond what they would be prepared to pay. The whole point of getting the building a relatively cheap basis is that it puts us in a position where we are well placed to carry out Ministers' wishes that the building should house a British presence.
4. I thought that I would copy the RFD letter to BTC as a follow up to my letter of 17 November to Mr Smith-Laittan and ask them for their reactions to the formula - and whether they have any feel at this stage about the sort of budget the Chamber might have (they probably won't - that is what the next discussion stage will establish). I anticipate BTC's reactions will be in line with my own and they will look to us to knock "land return" on the head. What do you think? Any other good arguments to use with RFD?
nBJawn
406/13
HUD 406/13
RFC:
56
Deborah Barnes Jones
Hong Kong Department
WH 312
270 2068
19 November, 1993
INDA
2 3 NOV 1993
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