CELEX: 51983DC0176
Language: en
Date: 1983-03-25
Title: GENERAL BUDGET FOR 1983 SECTION III - COMMISSION TRANSFER OF APPROPRIATIONS No 5/83 (non-compulsory expenditure)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 176
Vol. 1983/0049
 ---pagebreak--- Disclaimer
Conformément 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
règlement.
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 Economic
Community and the European Atomic Energy Community (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 Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---      C O M M IS S IO N OF THE EUROPEAN C O M M U N ITIES
     GENERAL BUDGET FOR 1983                                                      COM(8j) 176 final.
     SECTION I I I - COMMISSION
                                                                                  Brussels, 25 March 1 9 8 3 ,
                                  TRANSFER OF APPROPRIATIONS No 5/83
                                      ( non-com pulsory e x p e n d itu re )
    FROM CHAPTER B - 101                      -    CONTINGENCY RESERVE
    TO CHAPTER A - 20                         -    INVESTMENTS IN IMMOVABLE PROPERTY,
                                                   RENTAL OF BUILDINGS AND ASSOCIATED
                                                   COSTS
    A r t i c l e A - 206                     -    A c q u is itio n o f in a o v ah le p ro p e rty
                                                                                                        667 000 ECU
    The F in a n c ia l C o n tr o lle r approved t h i s p ro p o sa l on 11 March 1983 i n accordance
    w ith A r t i c l e 2 1 ( 4 ) o f th e F in a n c ia l R e g u la tio n and c e r t i f i e d th a t th e
    a p p r o p r ia tio n s a re a v a ila b le .
COM(83) 176 final.
 ---pagebreak---                                                                              QROtnTDS
 1.      The p re s e n t s i t u a t i o n
 The D e le g a tio n o f th e Commission o f th e European Communities in South and
 S o u th -E ast A sia was opened i n Bangkok i n September 1979· The lim ite d property-
m ark et, e s p e c ia ll y la r g e re s id e n c e s s u ita b le f o r d ip lo m a tic r e p r e s e n ta tiv e s ,
meant t h a t i t to o k f iv e months t o f in d a house f o r th e Head o f D eleg atio n .
 F in ally - a th r e e - y e a r le a s e was sig n ed on a house i n H uaaark. B esid es bein g
 a lo n g way from th e D e le g a tio n , a d isad v a n ta g e compounded by th e t r a f f i c
 s i t u a t i o n i n Bangkok, th e house i s l i a b l e to flo o d in g d u rin g th e ra in y season.
 T his h as become w orse e v e ry y e a r 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 e r y e a r . At th e end o f 1982, th e ra in y season flo o d s
re a ch e d th e house w hich, b e s id e s c au sin g th e oocupants c o n sid e ra b le d isco m fo rt,
meant t h a t i t c o u ld n o t be u sed f o r o f f i c i a l fu n c tio n s f o r more th a n th r e e
m onths.
B ecause th e owner i n s i s t e d t h a t th e le a s e be renewed f o r a f u r th e r two o r
th r e e y e a r s , th e Head o f D e le g a tio n had to le a v e th e house i n m id-January and
move i n t o a h o t e l . The owner *s r e f u s a l to g ra n t a o n e -y e ar le a s e to enable
th e Commission t o f in d a s u b s t i t u t e i n acco rd an ce w ith normal b u d g etary
p ro c e d u res and th e s i t u a t i o n c r e a te d by th e flo o d s a t th e and o f 1982 have
fo rc e d th e Commission to propose th e s o lu tio n which i s s e t out i n t h i s
document.
A th o ro u g h s e a rc h h a s shown t h a t a house o f s u ita b le s iz e and la y o u t and i n a
b e t t e r lo c a t io n i s f o r s a le a t 588 Soi Sanguansuk* D u sit. This t r a n s f e r o f
a p p r o p r ia tio n s i s t o e n ab le t h a t house t o be p u rch ased .
2.       Descr i p t io n o f th e p r o p e rty
        ■■hi·'· u ~ a m m a r £ ^ a a * n «w b » b i — t - x n a n m m ctO U
The house, whioh i s su rro u n d ed by 2 680 sq . a . o f garden, c o n s is ts o f th r e e
bedrooms, two bathroom s, a liv in g ,''d in in g room, a k itc h e n /b r e a k f a s t room and
a s tu d y t o t a l l i n g 375 sq . » · O u tb u ild in g s and o th e r accommodation (se rv a n ts*
q u a r te r s , e t c . ) acco u n t f o r a f u r t h e r 127 sq. m. There i s a swimming pool in
th e g ard en - a f e a tu r e whioh i s i n no sen se a lu x u ry i n t h a t re g io n .
The house was c o m p le tely r e p a ir e d and r e f u r b is h e d r e c e n tly . I t i s f u l l y
fu rn is h e d and s i t u a t e d c lo s e t o th e D e le g a tio n and about 3 ksa from th© main
m i n i s t r i e s . I t was in s p e c te d by a su rv e y o r who concluded t h a t , o v e r a ll, d e s p ite
i t s age (60 y e a r s ) , t h e house and a l l th e p ro p e rty a re i n e x c e lle n t c o n d itio n .
H is r e p o r t a ls o p o in t« o u t t h a t th e town p la n n in g r u l e s f o r t h a t a re a (whioh
i s n e a r th e r o y a l p a la c e ) l i m i t b u ild in g s t o s i x sto rey B so th e r e i s no r i s k
o f th e house becom ing su rro u n d ed by tow er b lo c k s . The m u n icip al a u t h o r i t i e s
r a i s e d t h e a c c e s s ro a d a few y e a r s ago and i n s t a l l e d ad eq u ate d ra in a g e . The
owner o f th e house h a s a ls o c a r r ie d o u t im provem ents t o en su re th a t th e
d ra in a g e system i s e f f i c i e n t . The house was in s p e c te d d u rin g th e ra in y season
and no s ig n o f flo o d in g o r dampness was d isc o v e re d .
I t s s iz e and f e a t u r e s make t h e house p a r t i c u l a r l y s u ita b le f o r a Head o f
D e le g a tio n and fa m ily and i s n o t l i k e l y t o provoke c r itio ie r a s from th e em bassies
o f th e Member S ta te s .
 ---pagebreak---                                                       -   2 -
3.      Breakdown o f co g ta
The p ro p e rty , in c lu d in g la n d , f u r n i t u r e and f i t t i n g s , was o r i g i n a l l y o f f e r e d
f o r s a le a t a p r ic e o f B 17 000 000 (770 276 ECU). A fte r le n g th y n e g o tia tio n s ,
t h i s was reduced t o B 14 000 000 (a b o u t 667 000 ECU). The u s u a l p r a c t i c e i s
f o r Heads o f D e le g a tio n t o r e n t a p ro p e rty i n t h e i r own name and t o re c e iv e
an allow ance c o v e rin g p a r t o f th e r e n t . I n t h i s c a se , however, t h e owner does
n o t w ish t o r e n t th e house on a perm anent B a s is , u n le s s t h e r e i s a lo n g le a s e
 ( f i v e o r seven y e a r s ) w ith payment i n advance.
 B esid es th e d i f f i c u l t i e s w hich payment o f f i v e o r seven y e a r s ' r e n t i n advance
 would pose from th e p o in ts o f view o f th e Budget and c e r t a i n r e g u la tio n s ,
 r e n t a l i s n o t an economic o p tio n . S im p lifie d f ig u r e s com paring p u rc h a se and
 r e n t a l a re annexed and show t h a t from th e e le v e n th y e a r th e p u rc h a se p r ic e would
 have Been exceeded By th e amount o f r e n t p a id , assum ing t h a t t h i s i s in d ex ed
 i n l i n e w ith movements i n th e comsumer p r ic e in d e x i n T h a ila n d o v er th e l a s t
 th r e e y e a r s .
 At th e re q u e s t o f th e Commission a d m in is tr a tio n , which w anted an in d ep en d en t
  o p in io n , a su rv e y o r nom inated By P r ic e W aterhouse, Bangkok, p re p a re d a r e p o r t.
  T his showed t h a t th e c u rre n t fa s h io n o f B u ild in g la r g e u rb a n com plexes and
  oo-ow nership B locks i n Bangkok means t h a t h ig h q u a lity o n e -fa m ily h o u ses o f th e
  ty p e sought By B usinessm en and d ip lo m a ts a r e th r e a te n e d w ith t o t a l d is a p p e a ra n c e
  and w i l l proBaBly c e a se t o e x i s t By t h e end o f th e e i g h t i e s .
   The a v erag e Budget p ro v id e d f o r em bassies w ish in g t o p u rc h a se am b assad o rs'
   re s id e n c e s i s Between B 20 m illi o n and B 30 m illio n .
   The p o l i t i c a l s i t u a t i o n i n T h a ila n d i s re g a rd e d a s th e most s t a b l e o f a l l
   th e c o u n tr ie s i n t h e re g io n , in c lu d in g S in g ap o re and M alay sia. There
   a p p ea r th e r e f o r e t o Be no f a o to r s w hich would make in v e stm en t t h e r e im prudent
   i n e i t h e r th e s h o rt o r th e lo n g term .
    4·     C onclusion
    The re q u e s t f o r a t r a n s f e r o f a p p r o p r ia tio n s a s s e t ou t above f o r th e p u rc h a se
    o f t h i s p ro p e rty a p p e a rs j u s t i f i e d By th e s t a t e o f th e p ro p e rty m arket i n
    Bangkok, in d ep en d en t r e p o r t s 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 h a ila n d , th e economic a s p e c ts o f t h e p u rc h a se and th e u n fo re s e e n d i f f i c u l t i e s
    which fo rc e th e Head o f D e le g a tio n t o l i v e i n a h o te l u n t i l a perm anent
    w orkable s o lu tio n can Be found.
 ---pagebreak---           COMPARISON FOR THE COMMISSION (iff BAHT) BETWEEN RENTAL ON THE LOCAL
                          MARKET AND INVESTMENT FROM THE GENERAL BUDGET
                       RENTAL                                           INVESTMENT FROM OWN MJNDS
        TYPE OF                               AGGREGATE            TYPE OF                     AGGREGATE
                              COST*                                                    COST
       EXPENDITURE                                 COST           EXPENDITURE                     COST
1983      R e n ta l          960.000             960.000            R en ts!         960.000      960.000
1984         II               960.000          1.920.000                          14.000.000   14.960.000
                                                                    P urchase
1985         II               960.000          2.8 8 0 .0 0 0           -               -      14.960.000
1986         II           1.248.000            4.1 2 8 .0 0 0           -               -      14.960.000
1987         II           1.248.000            5.376.00 0               -               -      14.960.000
1988          II          1.248.000            6 .6 2 4 .0 0 0          -               -      14.960.000
1989          II          1.622.400            8.2 4 6 .4 0 0           -               -       14.960.000
1990          II          1.622.400            9.8 6 8 .8 0 0           -               -       14.960.000
1991          II          1.622.400          11.491.200                 -               -       14.960.000
1992          II          2.109.120          13.600.32 0                 -               -      14.960.000
1993          II          2 .1 0 9 .1 2 0    15.709.440                  -               -      14.960.000
1994          II          2 .1 0 9 .1 2 0    17.818.560                  -               -      14.960.000
1995          II          2.74 1 .9 0 0      20.560.46 0                 -               -      14.960.000
1996           II         2.7 4 1 .9 0 0     23.302.36 0                 -               -      14.960.000
1997           II         2.7 4 1 .9 0 0     26.044.26 0                 -               -      14.960.000
1998           (1         3 .5 6 4 .4 7 0    29.608.73 0                  -               -     14.960.000
1999           II         3 .5 6 4 .4 7 0    3 3 .173.2 0 0               -               -     14.960.000
2000           II         3 .5 6 4 .4 7 0    36 .7 3 7 .6 7 0             -               -     14.960.000
2001           II         4 .6 3 3 .8 0 0     4 1 .371.4 7 0              -               -     14.960.000
2002            II        4 .6 3 3 .8 0 0     46 .0 0 5 .2 7 0            -               -      14.960.000
2003           (1         4 .6 3 3 .8 0 0     5 0 .639.0 7 0               -               -     14.960.000
2004            II        6 .0 2 3 .9 4 0     56.663.0 1 0                 -               -     14.960.000
 2005           II         6 .0 2 3 .9 4 0    62 .6 8 6 .9 5 0             -               -     14.960.000
 2006           II         6 .0 2 3 .9 4 0    6 8 .710.8 9 0               -               -     14.960.000
* C alcu la te d , on th e b a s is o f f ig u r e s p ro v id e d by P r ic e W aterhouse