TNAG-2764-FCO40-3981-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1993 — Page 125

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duties which it is to fulfil and the powers which it will

need. Also, do the FCO have any individuals in mind as

potential first trustees, and how (and from whom) is it envisaged that future trustees would be recruited?

12.

However, it may be worth reconsidering whether

a separate trust of the whole fund is really wanted at

all. If it is to be simply a "money-box", it would impose an extra layer of trust administration where none

is really needed.

Even if suitable trustees were willing

to act without remuneration, it would almost inevitably

lead to some extra expense.

13.

The alternative would be to revert to something

like the FCO's earlier proposals, under which the capital would be paid over to the ICR and the British Council on suitable terms. The capital would then be retained and

administered directly by those bodies, with income being

applied each year. The British Council would presumably

want their share to be governed by a declaration of trust, as they did in 1989, but there would be no need

for separate trustees. The draft declaration produced by

the British Council could be revised to ensure that it

gave effect to Sir S.K. Tang's wishes.

14.

If this second approach were to be adopted, two

main documents would be needed:

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