CONFIDENTIAL

045201

MDHIAN 0117

ISLANDS IN PLACE AND STEAD OF THE PLAINTIFF HEREIN, ON TERMS AND CONDITIONS SET FORTH IN THE FIFTH PARAGRAPH OF THE AFFIDAVIT

OF DENNIS BALFOUR MINNS FILED HEREIN, AS SOLE TRUSTEE OF THE TRUSTS SET FORTH IN THE SAID DEED. UNQUOTE

BY VIRTUE OF HIS ROLE AS PROTECTOR OF CHARITIES, THE ATTORNEY GENERAL IS NAMED AS ONE OF THE DEFENDANTS TO THE APPLICATION.

4. POINT (I) RAISES NO POLITICAL PROBLEMS AND THE ATTORNEY GENERAL

WILL SUPPORT AN AFFIRMATIVE ANSWER. ON POINT (III) THE ATTORNEY

GENERAL WILL ARGUE AGAINST THE PROPOSED ORDER ON THE GROUNDS THAT

THERE IS NO GOOD REASON FOR APPOINTING A FOREIGN TRUSTEE RESIDENT

ABROAD WHERE THE TRUST PROPERTY AND BENEFICIARIES ARE NOT SITUATED.

5. ON POINT (II) THE ATTORNEY GENERAL WILL ARGUE INITIALLY THAT IT

IS PREMATURE TO ARGUE THE MATTER AT THIS STAGE, PARTICULARLY AS THE BASIC LAW MAY HAVE A BEARING ON THE QUESTION. HOWEVER THE

COURT MAY NOT BE PERSUADED TO LEAVE THE MATTER OPEN. IN THAT CASE

WE MAY NEED TO ARGUE THAT IN A LIMITED SENSE A CHARITY OPERATING

IN HONG KONG AFTER 1 JULY 1997 COULD STILL BE SAID TO BE ''BRITISH'

FOR THE PURPOSES OF THE TRUST DEED. WE ARE FULLY ALIVE TO THE RISKS

OF SUGGESTING FOR GENERAL LEGAL PURPOSES THAT SUCH A CHARITY WOULD

REMAIN BRITISH. THE ARGUMENT WOULD BE THE NARROWER ONE THAT THE

''BRITISH'' CHARACTER OF THE CHARITABLE INSTITUTIONS TO BE

BENEFITTED DERIVES FROM THE LEGAL SYSTEM BY WHICH THEY ARE

GOVERNED RATHER THAN IN CONNECTION WITH BRITISH SOVEREIGNTY. IT SHOULD BE POSSIBLE TO TAKE THIS LINE AND, IF SUCCESSFUL IN COURT, TO APPLY THE PRINCIPAL IN FUTURE WITHOUT STARTING POLITICAL HARES.

(THERE IS INCIDENTALLY NO MORE PRECISE INDICATION IN THE ORIGINAL TRUST DEED OF WHAT BRADBURY HIMSELF MEAN BY ''BRITISH'')

6. YOU SHOULD BE AWARE OF THE SITUATION IN CASE THERE IS ANY

PUBLICITY. IF YOU HAVE ANY COMMENTS ON THE POLITICAL JUDGEMENT

ABOVE WE SHOULD BE GRATEFUL TO HAVE THEM QUICKLY. YOU WILL

APPRECIATE THAT THIS IS NOT A MATTER ON WHICH IN LEGAL TERMS THE

ATTORNEY GENERAL CAN BE SEEN TO BE SEEKING INSTRUCTIONS FROM THE

FCO. NEVERTHELESS HE WILL OF COURSE TAKE YOUR VIEWS INTO ACCOUNT.

WILSON

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