TNAG-1981-FCO40-2814-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1989 — Page 112

CODE 18-77

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6. There are two other points I would like to raise. Is it safe to assume that Sir SK's specification that only accrued interest could be used, means that only the nominal value of the donation need be preserved - as opposed to the real value? I have in mind that if we have to increase the capital base to take account of inflation, then there will be precious little left to disburse. A second related point is the nature of investment permitted. Historically funds on deposit have done very poorly compared to shares or mixed investments. Could we place the funds with say, fund managers it might decrease as well as increase?

with the risk that

7. I have no objection to your seeking the advice of the Charities Commission (but see detail below) but in parallel, I would wish to pursue the points above.

8. On your draft letter to the Commissioner, at 22' in this file:

(a) I would prefer para 3(d) to continue to the effect that

you hope and assume this will not be necessary. I do not want to trouble Sir SK Tang's widow again on this.

(b)

On para 4, I would not wish you to copy your letter to the British Council or the Cancer Research Institute at this stage.

4 October 1989

PS

uffare اللتان

M V Stone

Hong Kong Department WH312

270 2651

I have no objection to the declassification of the popers mentioned

i