TNAG-2077-FCO40-2957-Hong-Kong-culture-1990 — Page 57

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FUTURE OF THE BRITISH COUNCIL IN HONG KONG

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1 THE DIRECTOR OF THE BRITISH COUNCIL HAS WRITTEN TO THE POLITICAL ADVISER ASKING HKG'S ADVICE ON SAFEGUARDING THE STATUS OF THE

BRITISH COUNCIL AFTER 1997.

2. THE JOINT DECLARATION MAKES CLEAR IN SECTION X OF ANNEX 1 WHICH DEALS WITH CULTURE AND EDUCATION, THAT INSTITUTIONS OF ALL KINDS MAY RETAIN THEIR AUTONOMY AND CONTINUE TO RECRUIT STAFF AND USE TEACHING MATERIALS FROM OUTSIDE THE SAR. WE PREVIOUSLY TOOK THE VIEW THAT THIS PROVIDED FOR THE CONTINUATION OF ORGANISATIONS SUCH AS THE BRITISH COUNCIL AND THAT IT WAS PREFERABLE THAT NO SPECIAL APPROACH SHOULD BE MADE TO THE CHINESE.

3. THE PRESENT STATUS OF THE COUNCIL IN HONG KONG IS AS A BODY INCORPORATED BY ROYAL CHARTER IN THE UK AND, EXTENSION, IN THE UK'S DEPENDENT TERRITORIES. THE COUNCIL HAS NO OTHER STATUS HERE AND HENCE, IN 1997, ITS LEGAL BASIS WILL DISAPPEAR IF NO ACTION IS TAKEN TO GIVE IT A NEW BASIS.

4. THE COUNCIL'S LAWYERS HAVE IDENTIFIED SEVERAL ALTERNATIVES FOR PROVIDING A NEW LEGAL BASIS. ONE WOULD BE INCORPORATION UNDER A SPECIAL ORDINANCE. THIS IS A ROUTE WHICH HAS BEEN TAKEN BY BODIES SUCH AS THE BRITISH RED CROSS SOCIETY, THE COMMUNITY CHEST AND THE YMCA. ALTHOUGH FAVOURED BY THE COUNCIL'S LAWYERS, IT IS A HIGH-

PROFILE ROUTE.

5. ANOTHER OPTION, WHICH WOULD BE LESS HIGH-PROFILE, WOULD BE THE POSSIBILITY OF REGISTRATION AS AN OVERSEA COMPANY UNDER THE COMPANIES ORDINANCE. SECTION 333 OF THAT ORDINANCE ALLOWS FOR BRANCHES OF FOREIGN BODIES TO HAVE A LEGAL BASIS IN HONG KONG IF A COPY OF THE DOCUMENT INCORPORATING THE PARENT COMPANY IN THE COUNTRY OF ORIGIN IS PROVIDED TO THE REGISTRAR OF COMPANIES. ALTHOUGH THE BRITISH COUNCIL IS INCORPORATED IN THE UK BY ROYAL CHARTER, HKG LAWYERS DO NOT THINK THAT THIS WOULD PRECLUDE THE COUNCIL HERE FROM REGISTRATION AS AN OVERSEA COMPANY, SINCE SECTION

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