TNAG-1981-FCO40-2814-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1989 — Page 214

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Our

Your ret

GEN/688/2

Tel ext

4809

P Morris Esq

MILD 286/4

915

1. cc CRD... mv. Long.

2. Retum to me.

Hong Kong Department

FCO

Nobe

Spoken Dr Howell. He will

N15

The British Council

PA

Promoting cultural, educational and technical co-operation between Britain and other countries

10 Spring Gardens London SW1A 2BN Telephone 01 930 8466 Telex 8952201 BRICON G

9 May 1988

3894786

(a) check whether this arrangement wouldbe free of tax in the VK (b) check what art of management Here the British Carnal his in mind. If the answer to (a) is no, he would be jasparo to me this in K2K.

Dear Peter

11215

SIR S K TANG DONATIAN

FINANCIAL ARRANGEMENTS

It has taken a little while for this matter to be looked at by our legal and financial people as well as by the Geographical Division. It proved to be somewhat less straight forward than might at first have appear. However we seem now to have reached an internal concensus on what might best be arranged.

We propose the following:

1.

2.

3.

4.

5.

FCO gives the £lm to the Council for use as a conditional donation. This is the course required by our Financial regulations.

Given the political position in Hong Kong and the fact that the payments from the fund are most likely to be in sterling in the UK, the sum should be remitted to the UK.

The British Council then invests the conditional donation under a trust fund arrangement in the UK.

The conditions of the donation would be that it could only be used on scholarships for Hong Kong and possibly Cancer Research Institute.

The British Council would then nominate its Representative Hong Kong as Fund Manager and he could administer the fund in collaboration with the Hong Kong Government and FCO on whatever cooperative basis was thought appropriate and utilising a local management advisory group.

This would appear to meet most, if not all, of the points raised originally and would provide a workable basis for the administration of the scheme for which we would expect to derive a management charge at an appropriate rate to be agreed.

Yours sincerely

چہ

Dr Gareth Howell

fr Controller

Americas, Pacific and

East Asia Division

X

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