TNAG-1981-FCO40-2814-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1989 — Page 148

CODE 18-77

FARAGT

Mr MacLeod

Reference...

нко

HKD 28611

23

SIR S K TANG

1. Thank your for your minute of 6 September, together with the very helpful analysis and draft letter.

2.

By coincidence I happened to come across some correspondence on the UK/HK Scholarship Scheme, which is mentioned on the correspondence sent to you, and attached. It transpires that the money already spent is by no means a small amount and, more importantly, we are effectively already committed to using all the income from two thirds of the Trust to fund the scheme.

3.

Briefly HMG and HKG have each agreed to give up to £125,000 per annum to fund about 20 scholarships for Hong Kong students to study in the UK. HMG's contribution is coming from: £40,000 from the AUS SAS vote and £85,000 from income from Sir S K Tang. Although in theory the scheme is only agreed for two years (1988/89 and 1989/90), In practice some of the students are on three year courses, and have been "promised" scholarships for the whole period.

I have written to HKG, whom I understand are disbursing the funds. I have asked them for details as to how exactly they go about this and under what authority.

4.

Clearly until I know more about what is going on, I do not wish to write to the Charity Commissioners. So please bear with me for another few weeks.

5.

15 September 1989

мля

Mikil ustare.

M V Stone

Hong Kong Department