TNAG-2077-FCO40-2957-Hong-Kong-culture-1990 — Page 26

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GUVI HOUSE как

7-10 11:37

The British Council

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Your ref

Tel ext

CF/HKG/0680/12

7th June, 1990

Confidential

Mr William Ehrmann, Political Adviser, Government Secretariat, Room 314, Main Wing, Central Govt Offices,

MANU KUNG.

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

Easey Commercial Building 255 Hennessy Road Hong Kong Telephone: 8315138 Facsimile: 8345731

Telex Code: 74141 BCOUN HX

Director: Mr Julian Davey

Ou William,

We will be meeting next week when I introduce my successor, Tom Buchanan. In addition to any general discussion, there is one issue I would like to discuss and it may be helpful if I outline it briefly in advance.

British Council Status

Some two years ago I discussed with your predecessor the question of British Council status after 1997 and agreed that although the matter was not urgent, it was desirable that we should investigate where we stood and what steps might need to be taken to secure our position for the future.

ML

bilay Line, WICK COOK the view that the continuation of organisations such as us was provided for by the Joint Declaration and that it was preferable no special approach be made to the Chinese authorities.

VUL Piebent status 13 as a body incorporated by Royal Charter in the UK and, by extension, in Britain's dependent territories (unless limited by local law). We have no other status here and hence, in 1997, our legal basis will disappear.

One course of action would be to seek special agreement with the PRC (? or SAR) government which would define the Council's presence and areas of operation. This is the basis under which we operate in many countries (i.e. under 'technical assistance' or 'cultural' agreements). However, I have assured, following the earlier discussions referred to, tha. you would not favour this course. We, too, would see dangers in that our mode of operation here is quite different from that of the Council in the PRC, which might 'be seen by the Chinese as the more desirable model.

The main alternatives, identified by our lawyers, would be:

incorporation under the Companies Ordinance

(a)

(b)

(c)

incorporation under the Registered Trustees Incorporation Ordinance

incorporation under a special ordinance

PHGE 02