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Mr MoLaren

Morale

Private Secretary

07 OCT 1987/

36

CONFIDENTIAL

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Hong Kong Department

& October 1987

PS/Lord Glenarthur

*PS/PUS

Mr Fifoot,

Legal Advisers

CRD

FED

HONG KONG: INSTRUMENT OF ENTRUSTMENT TO THE GOVERNOR TO CONDUCT HONG

KONG'S EXTERNAL CULTURAL RELATIONS

Problem

The Hong Kong Government wish to conclude a "cultural agreement"

with the Government of Japan. In what terms should the Governor of

Hong Kong be given authority to conclude the agreement?

1.

Recommendation

2.

I recommend that the Secretary of State give the Governor an

instrument of entrustment to enter into cultural agreements in

general terms on the lines of the attached draft. Legal Advisers,

Hong Kong and Peking agree.

Background and Argument

3. The Hong Kong and Japanese Governments have agreed the terms of

a cultural agreement which would provide significant funds (up to

about £210,000 per year) from the Japanese Government for Japanese

linguistic and cultural studies in Hong Kong. The Japanese have

insisted that the agreement must be a government to government one

which, in line with similar agreements they have made with other

countries, would directly involve the Hong Kong Government in receiving and managing the funds. The Hong Kong Government (having tried unsuccessfully to negotiate an alternative arrangement that

would not involve it directly), is now willing to comply with this condition in order to achieve an agreement that would significantly

CONFIDENTIAL

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