TNAG-1550-FCO40-2114-Proposed-donation-by-Sir-Shiu-Kin-Tang--Hong-Kong-philanthro-1986 — Page 13

RESTRICTED

Reference......

HKK 286/4.

24

Mr Wood, Legal Advisers, W44/5

W

Enter and bu w ond week please.

HONG KONG: DONATION TO HMG BY THE LATE SIR SHIU-KIN TANG

1.

A

B

ດ

C

Sir

a

я

Shortly before his death in June of this year, S K K Tang,

noted

donated £1 Hong Kong philanthropist, million "to be used for charitable purposes in the UK, at the

with Following consultations

the complete discretion of HMG". interested Departments within the office we informed Hong Kong of the options we considered existed for disbursing the money. Hong Kong discussed the alternatives with

the alternatives with Sir S K Tang who

SK said he would be agreeable to HMG using the interest from two-thirds of the donation to fund scholarships for Hong Kong students to study in the United Kingdom (administered by the British Council, that

interest and arranged) remaining one-third to a medical trust, eg cancer research.

2.

C

a

be

At

a

donating

meeting subsequent

the

between

if

from

the

Council

British representatives and those of CRD and HKD in August, it was agreed that

Trust Fund

need would

to be

and established

Trustees British Council confirmed that appointed to administer the Fund. they could not set up a fund on our behalf but could select and administer students to benefit under the scheme. British Council subsequently set out in Ms Bowland's letter of 19 September how they would be able to assist.

3.

to us as

appoint

letter appeals to set up a Trust, in the Trust's

matter of

The option in paragraph 5 of Ms Bowland's

it would avoid the necessity for us

Trustees and become

therefore are

involved

inclined,

а as

We administration. courtesy to ask Hong Kong, to seek the agreement of Sir SK Tang's executors to our proceeding in this way. If this agreement was forthcoming we would then invite the Council to draft a letter to them from HKD setting out the terms and conditions of such an arrangement. (The proposals for charges to meet admin costs etc seem fair enough.) This draft could then be cleared with HKD and British Council legal advisers. It would however require a clear

from directive

the FCO to the Council about the "special purposes", in order to meet the late Sir S K Tang's known wishes. This would need to cover both the scholarship and medical charity elements. (I read Ms Boland's final para as an attempt to leave the latter aspect to the FCO.)

CODE 18-77

4.

your

encounter

we

alternative whether this option could result in the donation being subject to eg income or other UK taxes.

Before taking this matter further I should be grateful for advice on whether

consider that

to we are likely you

if obstacles

the any legal objections or

accept

in

5 para

Ms suggested

of

letter and Bowland's

J Thomas

Oetebor 1986

Hong Kong Department WH 312

233 4828

ЫКИ 2842

RESTRICTED

RECEIVED IN REGISTRY

14 OCT 1986

XY

PA

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