ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (83) 176 
 
 
 
 
Vol. 1983/0 049 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1 ), this file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 2 43 vom  27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung m it Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION OF THE EUROPEAN COMMUNITIES
G EN ER A L B U D G ET FOR 1983 
SECTION I I I  -  COM M ISSIONCOM(8j) 176 final.  
Brussels, 25 March 1 9 8 3,
TRANSFER OF APPROPRIATIONS No 5/83 
( non-compulsory expenditure)
FR O M  CHAPTER B -  101 -  CON TIN G EN CY  RESERVE
T O  CHAPTER A  -  20 -  INVESTM ENTS IN IM M O V A B L E  PROPERTY, 
RENTAL OF BUILDINGS A N D  ASSOCIATED 
COSTS
A rtic le  A  -  206 -  A cq u isitio n  o f inaovahle p ro perty
667 000 E C U
The F in a n c ia l C o n tro lle r approved t h i s  proposal on 11 March 1983 in  accordance 
w ith A rtic le  21(4) o f th e  F in a n c ia l R egulation and c e r tif ie d  th a t the 
a p p ro p ria tio n s  a re  a v a ila b le .
COM(83) 176 final.

QROtnTDS
1. The p re se n t s itu a tio n
The D eleg atio n  o f th e  Commission o f th e  European Communities in  South and 
South-E ast A sia was opened in  Bangkok in  September 1979· The lim ite d  property- 
m arket, e s p e c ia lly  la rg e  re s id e n c e s  s u ita b le  fo r d ip lom atic re p re s e n ta tiv e s , 
meant th a t i t  took fiv e  months to  fin d  a house fo r th e  Head o f D elegation. 
Finally- a  th re e -y e a r le a s e  was signed on a house in  Huaaark. B esides being 
a long way from th e  D eleg atio n , a disadvantage compounded by th e  t r a f f i c  
s itu a tio n  i n  Bangkok, th e  house i s  lia b le  to  flo o d in g  du rin g  th e  ra in y  season. 
This has become worse every y e ar and th e  a re a  where th e  house i s  s itu a te d  haB 
sunk a t a  r a t e  o f 10 cm p er y e a r. At th e  end o f 1982, th e  ra in y  season floods 
reached th e  house which, b e sid e s causing th e  oocupants co n sid erab le discom fort, 
meant th a t i t  could n ot be used fo r o f f i c i a l  fu n ctio n s fo r more th an  th re e  
months.
Because th e  owner in s is t e d  th a t th e  le a s e  be renewed fo r a fu rth e r two o r 
th re e  y e a rs , th e  Head o f D elegation had to  leav e th e  house in  m id-January and 
move in to  a  h o te l. The owner *  s re fu s a l to  g ran t a one-year le a se  to  enable 
th e  Commission to  fin d  a s u b s titu te  i n  accordance w ith normal budgetary 
procedures and th e  s itu a tio n  c re a te d  by th e  flo o d s a t th e  and o f 1982  have 
fo rced  th e  Commission to propose th e  s o lu tio n  which i s  s e t out in  t h i s  
document.
A  thorough sea rc h  has shown th a t a  house o f s u ita b le  s iz e  and layout and in  a 
b e tte r  lo c a tio n  i s  fo r s a le  a t 588 Soi Sanguansuk* D u sit. This tr a n s f e r  o f 
a p p ro p ria tio n s  i s  to  enable th a t house to  be purchased.
2. Descr i p t io n  o f th e  p ro p e rty
■■hi·'· u ~ a m m a r £ ^ a a * n «w b»b i—t - x n a n m m c tO U
The house, whioh i s  surrounded by 2 680 sq. a . o f garden, c o n s is ts  o f th re e  
bedrooms, two bathroom s, a  liv in g ,''d in in g  room, a k itc h e n /b re a k fa s t room and 
a study t o t a l l i n g  375 sq. » · O utbuildings and o th e r accommodation (servants* 
q u a rte rs , e t c . )  account f o r  a fu r th e r  127 sq. m. There i s  a swimming pool in  
th e  garden -  a  fe a tu re  whioh i s  i n  no sense a  luxury in  th a t region.
The house was com pletely re p a ire d  and re fu rb ish e d  re c e n tly . I t  i s  f u lly  
fu rn ish e d  and s itu a te d  c lo se  to  th e  D eleg atio n  and about 3 ksa from th© main 
m in is tr ie s . I t  was in s p e c te d  by a  surveyor who concluded th a t, o v e ra ll, d esp ite 
i t s  age (60 y e a r s ), th e  house and a l l  th e  p ro p e rty  a re  in  e x c e lle n t condition. 
His re p o rt a ls o  p o in t«  out th a t th e  town p lan n in g  r u le s  fo r th a t are a  (whioh 
i s  n e a r th e  ro y a l p a la c e ) lim it b u ild in g s  to  s ix  storeyB  so th e re  i s  no r is k  
o f th e  house becoming surrounded by tow er b lo ck s. The m unicipal a u th o ritie s  
ra is e d  th e  a c c e ss ro ad  a  few y e a rs  ago and i n s ta lle d  adequate drainage. The 
owner o f th e  house has a ls o  c a r rie d  out improvements to  ensure th a t th e  
d rainage system  i s  e f f i c i e n t . The house was in sp ec te d  du rin g  th e  ra in y  season 
and no sig n  o f flo o d in g  o r dampness was discovered.
I t s  s iz e  and fe a tu re s  make th e  house p a r tic u la r ly  s u ita b le  fo r a  Head o f 
D elegation and fam ily  and i s  n ot lik e ly  to  provoke c ritio ie ra s  from th e  embassies 
o f th e  Member S ta te s .

-  2 -
3. Breakdown o f cogta
The p ro p erty , in c lu d in g  lan d , f u r n itu r e  and f i t t i n g s ,  was o r ig in a lly  o ffe re d  
fo r s a le  a t a p ric e  o f B 17 000 000 (770 276 ECU). A fte r len g th y  n e g o tia tio n s , 
t h i s  was reduced to  B 14 000 000 (about 667 000 ECU). The u su al p ra c tic e  i s  
fo r Heads o f D elegation to  re n t a p ro p e rty  i n  t h e i r  own name and to  re c e iv e  
an allow ance covering p a rt o f th e  r e n t. In  t h i s  case, however, th e  owner does 
not wish to  re n t th e  house on a permanent B asis, u n le s s  th e r e  i s  a  lo n g  le a s e  
( f iv e  o r seven y e a rs) w ith  payment i n  advance.
B esides th e  d i f f i c u l t i e s  which payment o f f iv e  o r seven y e a r s ' re n t in  advance 
would pose from th e  p o in ts  o f view o f th e  Budget and c e r ta in  re g u la tio n s , 
r e n ta l i s  not an economic o p tio n . S im p lifie d  fig u re s  comparing purchase and 
r e n ta l are  annexed and show th a t from th e  e lev e n th  y e a r th e  purchase p ric e  would 
have Been exceeded By th e  amount o f re n t p a id , assum ing th a t t h i s  i s  indexed 
in  lin e  w ith  movements in  th e  comsumer p ric e  index in  T hailand over th e  l a s t  
th re e  y e a rs.
At th e  re q u e st o f th e  Commission a d m in is tra tio n , which wanted an independent 
o pinion, a  surveyor nom inated By P ric e  W aterhouse, Bangkok, p rep ared  a re p o rt. 
This showed th a t th e  c u rre n t fa sh io n  o f B u ild in g  la rg e  urban complexes and 
oo-ownership B locks i n  Bangkok means th a t hig h  q u a lity  one-fam ily houses o f th e  
type sought By Businessmen and diplom ats a re  th re a te n e d  w ith  t o t a l  disap p earan ce 
and w ill proBaBly cease to  e x is t By th e  end o f th e  e ig h tie s .
The average Budget provided fo r em bassies w ishing to  purchase am bassadors' 
re sid e n c e s i s  Between B 20 m illio n  and B 30 m illio n .
The p o l i t i c a l  s itu a tio n  i n  T hailand i s  reg ard ed  as th e  most s ta b le  o f a l l  
th e  c o u n trie s  i n  th e  re g io n , in c lu d in g  Singapore and M alaysia. There 
appear th e re fo re  to  Be no fa o to rs  which would make investm ent th e re  im prudent 
i n  e ith e r  th e  sh o rt o r th e  lo n g  term .
4· C onclusion
The re q u e st fo r a  tr a n s f e r  o f a p p ro p ria tio n s  a s s e t out above fo r th e  purchase 
o f t h i s  p ro p e rty  appears j u s t i f i e d  By th e  s ta t e  o f th e  p ro p e rty  m arket in  
Bangkok, independent r e p o rts  on th e  p o l i t i o a l  and economic s t a b i l i t y  o f 
T hailand, th e  economic a sp e c ts  o f th e  purchase and th e  u n fo reseen  d i f f i c u l t i e s  
which fo rce  th e  Head o f D eleg atio n  to  liv e  i n  a  h o te l u n t i l  a  permanent 
workable s o lu tio n  can Be found.

COM PARISON FOR THE COM MISSION (iff BAHT) B E T W E E N  RENTAL O N  THE LO C A L 
M A R K ET A N D  INVESTM ENT F R O M  THE G EN ER A L B U D G E T
RENTAL INVESTM ENT FR O M  O W N  M JN D S
TYPE OFCOST*A G G R EG A TE TYPE O FCOSTA G G R E G A T E
EXPENDITURE COST EXPENDITURE COST
1983 R en tal 960.000 960.000 R ents!960.000 960.000
1984II960.000 1.920.000 Purchase 14.000.000 14.960.000
1985II960.000 2.880.000 - - 14.960.000
1986II1.248.000 4.128.000 - - 14.960.000
1987II1.248.000 5.376.000 - - 14.960.000
1988II1.248.000 6.624.000 - - 14.960.000
1989II1.622.400 8.246.400 - - 14.960.000
1990II1.622.400 9.868.800 - - 14.960.000
1991II1.622.400 11.491.200 - - 14.960.000
1992II2.109.120 13.600.320 - - 14.960.000
1993II2.109.120 15.709.440 - - 14.960.000
1994II2.109.120 17.818.560 - - 14.960.000
1995II2.741.900 20.560.460- - 14.960.000
1996II2.741.900 23.302.360 - - 14.960.000
1997II2.741.900 26.044.260 - - 14.960.000
1998( 13.564.470 29.608.730 - - 14.960.000
1999II3.564.470 33.173.200 - - 14.960.000
2000II3.564.470 36.737.670 - - 14.960.000
2001II4.633.800 41.371.470 - - 14.960.000
2002II4.633.800 46.005.270 - - 14.960.000
2003( 14.633.800 50.639.070 - - 14.960.000
2004II6.023.940 56.663.010 - - 14.960.000
2005II6.023.940 62.686.950 - - 14.960.000
2006II6 .0 2 3 .9 4 0 68.710.890 - - 14.960.000
* C alculated, on th e  b a s is  o f fig u re s  provided by P ric e  Waterhouse