1

2

(2)

(3)

a memo from the Chief Secretary's Office informing the Director of Accounting Services that the Chief Secretary would send a personal letter to Sir S K and that there was no need to issue a separate receipt (Annex D); and

a telegram from Hong Kong to you (Telno 4049) reporting that the Acting Governor had spoken to Lady Tang about the gift and she was content to leave the matter entirely to the UK Government and the Governor (Annex E).

In our legal advisers' opinion, there is sufficient evidence of a charitable gift for a distribution from the fund to be made with safety. We would therefore hope that you can now reconsider this on the basis of the additional documentation and information now available.

In case your legal advisers feel that further evidence is necessary, please let us know.

With Best Wishes,

Yu, for,

Which

(CE Leeks) Private Secretary

Mr P J Morris

Hong Kong Department

Foreign and Commonwealth Office London SW1A 2AH

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