1990-02-27
12:10 A GO
CONFIDENTIAL
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853 668 0570
7.
Apparently
a
from
subsequent
communications
as
(presumably informal and verbal) with Sir SK Tang, it emerged that he left it fairly open for HMG to make suggestions to how the donation might be used and invested. FCO suggested several options (Tel No. 708) and in Tel No. 1377 HKG informed FCO that Sır S K Tang dad not wish to become involved in setting up trust and did not want the capital itself to be used either. He favoured using the interest from two thirds of the donation for funding scholarships for Hong Kong students to study in the UK (if possible, administered by the British Council) and donating the interest from the remaining one-third to
medical trust, such as cancer research.
8.
The letter of
10
March 1986 taken in connection with what he subsequently indicated, in particular his that the interest receivable from the gift be distributed 20 the manner he favoured are not enough to create a trust in favour of the charities specified. It appeared from subsequent communications with Sir SK Tang that he knew he could by a legal document have made compulsory the application of the El million for the charitable purposes he favoured but he indicated that he did not wish to set up a trust. Donating a sum of money in order that the donee may have the ability Co subscribe to certain charities has never been held to amount to a trust in favour of the charities (Wheeler v. Smith (1860), 1 Giff. 300, at 308).
9.
Sir S K Tang's will (copy attached) would be good evidence of whether or not he intended to impose a trust upon HMG in respect of the donation. However, the will is silent as to the said gift.
10.
As 11 seems to be the correct view of this case that Sir S K Tang depended upon HMG to fulfil his wish with regard to the charities concerned, he did not intend to impose any legal obligation and therefore, did not include them in his will or in any legal document. An expression of wish would not set up a
trust unless the circumstances indicate that the words were used in an imperative sense.
11.
From 10 March 1986 to 10 June 1986 the latter being the date when a cheque for fl million was handed to the Chief Secretary (who accepted it on behalf of HMG), the case is wholly without evidence to prove that any valid trust was created or attached to HMG's legal interest. On a fair consideration of the whole of the evidence in this case, my view is that the transaction amounts to this : that a charitable gift was made to HMG when Sir S K Tang was living, no objects were pointed out for whose benefit the gift was to be applied, it was left to HMG's discretion to apply 1t as they might think fit but he trusted that HMG would exercise such power in doing such charitable acts as they knew he would most approve of.
that
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