TNAG-1683-FCO40-2333-Cultural-agreement-between-Hong-Kong-and-Japan-1987 — Page 2

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£106,667 eamed June 86-31de687

4.

(b)

Mr Hum

1

agree subject to the necessan agreement being Blam

SIR SK TANG BEQUEST

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1.

In 1986, Sir S K Tang made a bequest to HMG of £1 million to be used for charitable purposes. Just before his death Sir SK Tang agreed with our suggestion that some of the money could be used to benefit the people of Hong Kong. He said that one third of the interest earned should be used for medical research and two thirds should be used for educational purposes. He would prefer the capital to remain untouched.

3.

2.

Since June 1986, the £1 million has been placed on one month renewable fixed deposit in Hong Kong. Interest earned up to 31 December this year will be about £160,000.

(a)

If you agree, we now propose to deal with the bequest in the following way:

arrange to transfer one third of the capital and interest from Hong Kong to London (ie £333,333 plus £53,333 making a total of £386,667), and make it over to the Institute of Cancer Research. We would stipulate that the Institute would need to invest the capital and enjoy only the annual interest earned (at 7% this would give them an annual income of £23,333):

the two thirds remaining in Hong Kong (£666,667) should yield about £68,000 in interest per year and we will arrange with BTC and British Council to use this amount to support the new scholarship scheme. By adding the £68,000 (approx) to the £40,000 committed under the existing British Council scheme we will be contributing a total of £108,000 (approx) which is roughly £17,000 short of our agreed maximum annual contribution of £125,000. This shortfall could be made up from interest earned to date.

We will need to secure the agreement of other parties, and to consider how the above should be done, but if you agree the aims set down in para 3 I can take this further as necessary.

нко

RECEIVED

286.

CODE 18-77

نسو

15 December 198711 JAN 1988

INDEN

P J Morris

MrFoorgan (in/o) N29/12

Mr Morris

please proceed as

you propose in

para 4.

W/23/12