RESTRICTED
been administered on HMG's behalf by the Hong Kong Government.
The third designated for the ICR has been left intact.
However,
since 1988 two thirds of the accrued interest has
gone towards funding the worthy UK/Hong Kong Merit Scholarship
Scheme.
5.
Since 1986, Hong Kong Department have been in endless
discussion with FCO Legal Advisers, Legal Advisers in Hong
Kong and with the Charity Commissioners about how to administer the Bequest. After several frustrating years of
delays and contradictory advice we have now received what we
consider to be sound advice from the Treasury Solicitors, on
which we intend to act. Briefly, the Treasury Solicitors
have recommended the setting up of a Sign Manual Direction
allocating the funds under the terms agreed between ourselves
and the British Council (through a Declaration of Trust) and
the ICR (through a letter of intent). We will be submitting
in more detail to Ministers once we know that the British
Council and the ICR are content with the basis on which we
intend to proceed.
6.
We are content that we have found the correct legal way of
proceeding but are now faced with paying the legal fees of the Treasury Solicitors. Initial informal enquiries have led to the soliciting of an Opinion of Counsel on 13 January
outlining the various procedural options open to us. This has
cost £600 plus VAT and has not yet been paid for. Mr Lawton
in the Treasury Solicitors Office has estimated a rough final
cost of £2,000 but has stressed that this is a back of the
envelope figure and not one to which he can be held. I fear
that in effect costs will be a good deal higher.
7.
Having explored possible avenues of funding for incurred
legalfees.2204
RESTRICTED