TNAG-2764-FCO40-3981-UK-Hong-Kong-Scholarship-Scheme-donation-to-the-UK-Governme-1993 — Page 51

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SK TANG: ADVICE FROM THE TREASURY SOLICITOR

1.

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I have spoken to Anthony Lawton, the Treasury Solicitor, about the division of Sir S K Tang's bequest between the British Council and Imperial Cancer Research. I asked him whether there would be any difficulty in bringing ICP's portion back to the UK whilst leaving the British Council's portion in Hong Kong for as long as possible, where it is most effective. He said that this might prove difficult, given that the bequest was a lump capital sum. However, because the bequest was gifted to HMG, it is in effect, a free agent to deal with the bequest as it wishes and there is, in Mr Lawton's view, no reason why a Royal Sign Manual should not take the direction deemed appropriate by HMG.

2. I also asked Mr Lawton about the possibility of drawing up a Declaration of Trust between ourselves and the British Council as a sleeping document (as mentioned by Ms Haspel, in her minute of 2 February to Mr long, CRD). Mr Lawton was in favour of this suggestion. It would mean that the Declaration could be activated at short notice and there would also be no reason why the terms could not be altered before final enactment if necessary.

3. On both points (paras 1 and 2) Mr Lawton will probably have to go to the Law Officers for an Opinion of Counsel, Mr David Unwin. He also wishes to make a note of how things stand at the moment between ourselves and the Treasury Solicitors and how we wish him to proceed. I recommend that we ask him to obtain an Opinion of Counsel on both points. However, it is unlikely that these Opinions will be provided free of charge and it may be wise to ascertain now what the likely cost will be (and how it will be paid!).

4.

Our own Legal Advisers are unsighted on our discussions with the Treasury Solicitor. But it may be better to wait until we have a full Opinion from the Treasury Solicitors before we send Ms Brooks our draft submission for clearance. We should then be in a position to attach necessary supporting documentation which in the long run may save a good deal of time. Depending on the Opinion of Counsel, we could start preparing the Declaration of Trust once we have

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