M Davidson
America, Pacific and South Asia
Division
The British Council
10 Spring Gardens
LONDON SW1A 2BN
270 2651
ROBALM
7 September 1988
SIR S K TANG DONATION
1.
2.
FINANCIAL ARRANGEMENTS
Thank you for your letter of 3 June.
The purpose of this letter is to set out the arrangements which we understand will apply to the funds we intend should be administered by you which will, subject to the terms of this letter, now be confined to the sum to be used for UK/Hong Kong scholarships for students from Hong Kong.
(a) The fund comprises the capital of £666,667 and interest
earned, or to be earned, thereon.
(b) The fund will be given to the British Council as a
conditional donation.
(c) The fund will be remitted to the British Council in the
UK.
(d) The British Council will invest the conditional donation
under a trust fund arrangement in the UK.
(e) Unless otherwise agreed with the FCO:
(i)
(ii)
(iii)
(iv)
the fund will only be used for scholarships for students from Hong Kong to study in the UK. The scholarships will be administered by the Hong Kong Government in collaboration with the FCO; no withdrawals may be made against the capital sum of £666,667;
the maximum withdrawal per annum of interest earned for use for the purposes of the donation shall be limited to £85,000. Any unspent sum of the maximum annual withdrawal of £85,000 may however be drawn upon in any subsequent year. The British Council will nominate its Representative in Hong Kong as Fund Manager.