THE Government's London office will be scaled down and re-organised into an economic and trade office after 1997, according to a proposal from the London Commissioner. Secretary for Trade and Industry, Brian Chau Tak-hay, said the first stage of the re-organisation, to take place in 1994-95, involves moving the responsibility for appointments from the London office to the Civil Service Branch and deleting eight posts. The Hong Kong-based officers concerned would return to the territory at the end of their postings, the locally-employed staff would be either redeployed within the office or be invited to apply for redundancy. The second stage - to begin the following financial year - would see the restructuring and streamlining of the community services and student affairs divisions, he said. Mr Chau said the restructuring and streamlining of the Parliamentary Liaison Division in 1996-97 would conclude the exercise. The Secretary said the administration would review the Commissioner's proposals for 1995-96 and 1996-97 nearer the time, in the context of the annual draft estimates. Mr Chau said the commission made no specific proposal on the future of the Grafton Street office or the Commissioner's residence in Cowley Street. The administration, however, was committed to a lease for the Grafton Street office until June 2004, and the Commissioner was studying the feasibility of sharing the premises with other Hong Kong-based organisations with offices in London, he added.