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Miss Sandals er 30/3

Ms Haspel

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who from Ki 30/3

THE SIR S K TANG BEQUEST: UK/HK SCHOLARSHIPS SCHEME

1. /

14

You will have a copy of Mr Smith-Laittan's letter to me of 25 March. The purpose of my current exchange with Hong Kong the BTC and the Hong Kong Education Department is to clarify the funding arrangements for scholarships up to 1996/97.

2. I think probably the proposals for the further disposition of the actual Bequest is more a a matter for Hong Kong Department. We are very glad to be getting the two-thirds of *he interest on the Bequest principal for scholarships use. Obviously we should be delighted if we could have a higher percentage. But I had understood it was a matter of the Bequest terms that part of the proceeds should go in the direction of medical relief/cancer research, etc. May I leave you to take up with the Trade Commission the Arrangements/conditions for the Bequest?

3. The only point I would make is that we had earlier gone into the issue of whether to let the British Council take on the role of trustees of private funds put at the disposal of the FCO for scholarships purposes generally. Our conclusion was that this would be quite unsatisfactory since it would mean having to hand over complete financial control to the Council and there would be no effective legal means of directing them to use the money in accordance with FCO objectives.

iseancy

M J Long

Overseas Students Policy Section

Cultural Relations Department 30 March 1992

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