TNAG-2764-FCO40-3981-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1993 — Page 27

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been administered on HMG's behalf by the Hong Kong Government.

The third designated for the ICR has been left intact.

However,

since 1988 two thirds of the accrued interest has

gone towards funding the worthy UK/Hong Kong Merit Scholarship

Scheme.

5.

Since 1986, Hong Kong Department have been in endless

discussion with FCO Legal Advisers, Legal Advisers in Hong

Kong and with the Charity Commissioners about how to administer the Bequest. After several frustrating years of

delays and contradictory advice we have now received what we

consider to be sound advice from the Treasury Solicitors, on

which we intend to act. Briefly, the Treasury Solicitors

have recommended the setting up of a Sign Manual Direction

allocating the funds under the terms agreed between ourselves

and the British Council (through a Declaration of Trust) and

the ICR (through a letter of intent). We will be submitting

in more detail to Ministers once we know that the British

Council and the ICR are content with the basis on which we

intend to proceed.

6.

We are content that we have found the correct legal way of

proceeding but are now faced with paying the legal fees of the Treasury Solicitors. Initial informal enquiries have led to the soliciting of an Opinion of Counsel on 13 January

outlining the various procedural options open to us. This has

cost £600 plus VAT and has not yet been paid for. Mr Lawton

in the Treasury Solicitors Office has estimated a rough final

cost of £2,000 but has stressed that this is a back of the

envelope figure and not one to which he can be held. I fear

that in effect costs will be a good deal higher.

7.

Having explored possible avenues of funding for incurred

legalfees.2204

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