TNAG-2273-FCO40-3272-UK-Hong-Kong-Scholarship-Scheme-donation-by-Sir-Shiu-Kin-Tan-1991 — Page 10

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

English law provides a highly developed system of dealing with charitable trusts, and it would be more convenient for us from several points of view if the trust was subject to English law.

10. Secondly, the trust has to be capable of operating after

1997.

It cannot therefore, in my view, be tied too closely to the present arrangements in the Colony. I would suggest for example that it would be unwise to involve officials from the present Hong Kong Government as trustees on an ex officio basis, and I think it would be better, so far as possible, to transfer the whole administration of the trust to people in the UK, who are independent of HMG and HKG. Third, it would be undesirable for FCO officials (HK Department, Legal Advisers) to become involved in the day to day administration of of the trust.

11. I should therefore be grateful for your views on this difficult and increasingly muddled affair, although I appreciate that much depends on the position in Hong Kong law.

- Do you have any general thoughts about how we should proceed?

- How can we reconstitute the trust in England or transfer its administration here?

- Who would administer it in the UK, on what terms, and with what powers (of investment etc)?

How soon could this be done, if there were no legal problems at the Hong Kong end?

12. If you think it would be helpful to arrange a meeeting, either with FCO officials only, or with the British Council and the Cancer Research Institute, please do not hesitate to say so. We here will be very happy to attend or organise any such meeting.

cc Mr Stone, HKD

Iain MacLeod Legal Advisers

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