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Ms Brooks
Legal Advisers
چاو
COVERING CONFIDENTIAL
File
ок інк
p.a.
SCHOLAMEND SCHEME
$
Reference
FILE
SH SANG WAB 2285/2
Aux 201
ED
A
B and C
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G and H
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SIR SHIU-KIN TANG'S DONATIƆN TO HMG
1. I have been given the task of resurrecting activity on the SK Tang bequest. I would greatly appreciate your help and advice on how to take things forward from their present dormant state.
Background
2. A short background note detailing key points relating to the bequest was written in January 1990 by the Hong Kong Government.
3.
As explained in the background at para 5, disbursements from the bequest have been made to the UK/Hong Kong Scholarships Scheme. (The most up to date details summarising the financial status of the bequest are contained in Mr Lai's letter of 9 January 1990 and Mr Cheng's letter of 12 March 1990.) However, Mr Edwards, Legal Adviser, expressed serious doubts about the validity of these payments. This in turn forced HKD to focus its attention on establishing the legal basis of the bequest with the eventual aim of transferring the administration of the fund to the UK.
4. As a result, the primary question to be answered was whether the original donation fully satisfied the legal requirements for a charitable trust. The following action was taken in helping to find the answer.
(a) Firstly, legal advice was sought from Hong Kong. Mr Stone wrote to Mr Lai at the Government Secretariat in Hong Kong in November 1989 to discover the status of the bequest in the law of Hong Kong.
(b) At the same time, advice was sought from the Charity Commissioners. Mr Macleod, Legal Adviser, wrote to
Mr Venables at the Charity Commissioners. In paras 9 and 10, Mr Macleod outlined some practical arrangements which the trust should accommodate once it was set up and administered in England.
(c) Mr Venables confirmed in his two replies that, in his opinion, the bequest did constitute a charitable trust. Provided there were no difficulties in Hong Kong, a scheme could be devised by the Charity Commissioners to arrange for the running of the trust in the UK. He suggested holding a meeting with the FCO to discuss how matters should proceed.
(d) After a considerable delay, Mr Lai replied with the advice of lawyers in Hong Kong. Senior Crown Counsel, Ms Lee, believed that the donation constituted a general gift
PEPACI
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COVERING CONFIDENTIAL
CODE 18-77