TNAG-1550-FCO40-2114-Proposed-donation-by-Sir-Shiu-Kin-Tang--Hong-Kong-philanthro-1986 — Page 5

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Mr Wood, Legal Advisers, W44/5

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B

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

1.

Shortly before his death in June of this year, Sir S K Tang, a noted Hong Kong

Kong philanthropist, donated £1 million "to be used for charitable purposes in the UK, at the complete discretion of HMG". Following consultations with the 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 Sir S K Tang who 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, if be arranged) and donating the interest from the remaining one-third to a medical trust, eg cancer research.

that C

2.

that

At a subsequent meeting between British Council representatives and those of CRD and HKD in August, it was agreed

Trust а

Fund would

and need to be established

Trustees appointed to administer the Fund. British Council confirmed that 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

letter of 19 September how they would be able to assist.

3.

The option in paragraph 5 of Ms Bowland's letter appeals to us as it would avoid the necessity for us to set up a Trust, appoint Trustees and become involved in the Trust's

an

administration.

We are therefore inclined, as a matter of 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 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 directive from 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.)

4.

Before taking this matter further I should be grateful for your advice on whether you consider that we are likely to encounter any legal objections or obstacles if we accept the alternative suggested in para 5 of Ms Bowland's letter and whether this option could result in the donation being subject to eg income or other UK taxes.

нии 226/4

I Thomas.

J Thomas

Hong Kong Department

CODE 18-77

October 1986

- 2 DEC 1986

WH 312

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/Mr Thomas