TNAG-1594-FCO40-2179-Honk-Kong-leading-personality-Sir-Yue-Kong-Pao--businessman-1987 — Page 37

should be met outside the Scheme.

The Foundation have now dropped this

suggestion. But they have now sent to the SEDC a set of final minutes, signed by Sir Y.K. Pao, which nevertheless record that the Commission agrees to Mr

Lee's appointment. We are aware of these revised minutes only because we

received a copy from the SEDC, who have agreed with our thinking but have been

careful not to take sides.

6. The SEDC have now proposed to the Foundation an amendment which we had suggested to the SEDC, to the effect that the Commission decided to discuss

the proposal at their next meeting. We and the SEDC both know that the

Commission did not decide this, but see it as a face-saving way out. If the

minutes record what actually took place they could only imply that either Sir

YK Pao's handling of the meeting or our representatives were seriously at

fault. But Sir YK Pao is believed to have reacted strongly to ODA questioning

his own recollection of the meeting (and implicitly his handling of it), and

proposing to record it inaccurately in the minutes. His reaction creates the

difficulty that our position has to be put firmly enough to prevent such a

misunderstanding occurring agains, but not so firmly as to antagonise the originator and (with the SEDC) main contributor to the Scheme.

7.

The Foundation's handling of this proposal has not inspired trust:

i) although they claim to have 'tabled' this proposal for the

Commission meeting, we certainly had no knowledge of it beforehand, though the Foundation apparently discussed it informally with the SEDC;

ii) their draft minutes do not reflect what we recall as having

happened at the meeting; and

iii) the 'final' text of the minutes has been put to the SEDC for their signature, having been signed by Sir Y.K. Pao, without the revised paragraph being cleared with us. The Foundation has given us no

indication that this revised text is in existence, let alone that Sir

Y.K. Pao has signed it.

Much of this reflects differences in the practices adopted by Governments and

commercial companies respectively. Sir Y K Pao may be receptive to this as an

explanation for the misunderstanding, and agree that better procedures need to

be agreed on for the future.

8.

But in the circumstances, it is difficult to regard the proposed

position of Honorary Secretary as merely a honorific which can be conceded at