IT is, so Alex Salmond told his audience as he launched Scotland House, a "little bit of England that will be forever Scotland".

Or at least for the next 17 days of the Olympics.

While down the road the UK Government has upgraded the plush Lancaster House and turned it into the grand-sounding British Business Embassy, the Scottish Government has taken over the Army and Navy Club in swish Pall Mall to promote Scotland and try to win some business contracts in the process. It will also provide a quiet haven for "Scolympians" wanting to escape the bustle of the Olympic Park.

Amid all the Union flags fluttering in this part of London, a large Saltire could be spotted in the famous thoroughfare and people knew they were entering a little piece of Scotland when the skirl of pipes greeted them at the door.

For this launch of the Scottish business pavilion, the Pall Mall Room became the Ben Nevis Room and inside were some of the great and the good of the Olympic executive committee, including Sir Craig Reedie, the former British Olympic Association chairman, who this week became the first Scot to be elected vice-president of the International Olympic Committee.

As suited types ate canapes and downed Beaujolais in the sweltering heat of Scotland House, Her Majesty's Press were told to expect some celebrities but the only ones spotted were singer Lulu – previously Marie McDonald McLaughlin Lawrie from Lennoxtown – actress Elaine C Smith, a leading light of the Yes Scotland campaign, The Proclaimers and Lord Puttnam, the film producer.

Invited guests were shown the premiere of Scotland the Olympic movie with pictures of famous and not so famous Scots carrying the Olympic torch.

The music was familiar, the signature tune from Chariots of Fire, produced by none other than the Labour peer himself, but with the added twist of a Scots fiddle.

There were scenes of young athletes running on the beach at St Andrews, where, of course, the opening credits of the Oscar-winning movie were actually filmed. Needless to say, the moment brought a broad smile to the bearded face of Lord P.

The First Minister revealed that in the Salmond household four Scottish figures were revered more than others; one was Eric Liddell "perhaps the most celebrated Scottish Olymipian of all time".

He announced a new edition of the Chariots of Fire film would be made available to every Scottish school so pupils could learn more about the 400m gold medallist, "his humility, dedication and absolute commitment to the service of others".

As sweat dripped from the brows of the invited guests, the FM spoke warmly about how Scotland House would help showcase Scottish business, industry, culture, food and drink.

During the next fortnight, there will be whisky tastings, sports receptions, a fashion show, athletics meetings, a charity fundraiser, music concerts and even a quiz night.

The Proclaimers, who else, were on hand to lift the spirits of the melting audience with Letter from America and 500 Miles.

Then it was Salmond no more as, the Macschmoozing over, the FM was off to prepare for the five-hour marathon that would be the Games' opening ceremony. But before he could get into a waiting car he was photographed with local Tony Appleton, who was dressed up in the scarlet uniform of a traditional London bellringer. It was difficult to see who was enjoying the encounter more.

He may not be a Scolympian but among non-political London folk Mr Salmond enjoys being the most recognisable Scottish celebrity; probably even more than Lulu.