My letter of 23 April informed the Committee that no property had been sold or purchased in the third quarter of financial year 2006-07. I enclose our latest report, which lists the properties sold (Annex A) and purchased (Annex B) in the fourth quarter of 2006-07. For the Committee's convenience, I also enclose a full list of estate sales (Annex C) and purchases (Annex D) for financial year 2006-07.

  As with previous reports, the figures shown for estate sales are the gross sales proceeds. Transaction costs will vary, but can be expected to average 6-8%. The properties in Vienna and Mbabane were the Residence of the Permanent Representative to the United Nations Organisations in Vienna and the Head of Mission respectively. The Vienna sale reflects the appointment in September 2006 of HMA Vienna as the Permanent Representative to the UN in Vienna, whilst the sale in Mbabane follows the changes to the FCO overseas network announced in the House by the then Foreign Secretary in 2004.

  In July 2006, we informed the Committee of the sale of residential property in Tel Aviv (the previous March). I am afraid that we incorrectly reported that the amount received represented a deposit of 60%, in fact, the £885,000 represented a 70% deposit. We are still waiting for the full balance of funds and will inform the Committee once the transaction has completed. In October 2006, we informed the Committee of the sale of offices in Asuncion. We will include the final balance of funds in our report for the first quarter of 2007-08.

  Further estate returns will be incorporated into the Permanent Under Secretary's quarterly letter on FCO management issues.

Richard Cooke

Parliamentary Relations Team

1 August 2007