CODE 18-77
J Wilde
CRD
OAB G/42
17
XFA 093/8
Reference..
GIFT FROM SIR S K TANG
Treasury have now replied to our informal approach to them on how best to proceed in this case.
1.
2.
They say that if the money is accepted by HMG it will go straight to the Consolidated Fund as an extra receipt. No interest would be paid.
3.
They therefore agree with your suggestion that the money be held in trust by the British Council, and are content for you to proceed on those lines.
4.
Clearly the terms of the Trust will need to be drawn up carefully. In view of the Fund's indefinite life, it probably cannot be restricted to Hong Kong students there could come a time when it was undesirable or impossible for the money to be spent that way. It may also be necessary to register the Fund as a Charity to avoid payment of income tax. But I am sure these and any other points will be considered when all concerned get down to the nitty gritty.
16 July 1986
En bertan
R W Horton
Finance Department 210 6021
HKK 286/4
28 JUL 1986