trust for charitable purposes generally. I wonder if that is not too wide; they might be required, for example, to apply it in other ways to advance the education of Hong Kong people, or for educational purposes in the UK, or perhaps to consult the FCO about how to use the funds.
6. The powers set out in para 6 do seem extremely detailed, but whether it is necessary or advisable to include them all is a point on which I am not in a position to judge and suggest you ask the advice of Treasury Solicitors. You asked what are the essential elements of the Declaration. I would suggest that something similar to the conditions set out in the draft letter of intent to the ICR would be the bare minimum, in particular condition (d) about investment and condition (e) about not reducing the principal sum.
7. Counsel has also advised that a Sign Manual direction is needed, which would appoint the BC funds to be held on the terms of the Declaration of trust and the ICR funds to be held on terms similar to the draft letter of intent (dated 30 January 1989). The draft letter looks fine to me, except that the final sentence of (e) "Without the approval..." should not be a separate sentence.
8. I have suggested a few amendments to your draft submission in manuscript on the text.
9.
Assuming that the recommendations in your submission are agreed, I would suggest that the next step should be to discuss the terms of the gift with both the ICR and BC, but make clear that agreement with them is subject to the further advice of Treasury Solicitors. You could discuss with the BC our reservations about their draft Declaration, and, if our comments are well taken, invite them to send us a redraft. Then I suggest you ask Treasury Solicitors to draft a Sign Manual direction (or, if necessary, instruct Counsel to do so) and seek their advice on the redrafted Declaration.
10. There is a budget administered by the Legal Advisers which could be used to pay for the expenses incurred in obtaining advice from Treasury Solicitors. If you wish to make use of these funds, when you receive their invoice, you should forward it to me with an itemised list of what advice was obtained, and I will then certify that the amount has been properly charged, and forward it to Legal Executive Section, who will arrange for payment to be made.
Tull Banit
Jill Barrett