CONFIDENTIAL

(ii) The removal of the clause would be regarded by

Unofficial Members of the Executive and Legislative

Councils and the public generally as an unreasonable

refusal to allow Hong Kong effectively and comprehensively to deal with the problem of corruption. It is the opinion of successive Commissioners of Police in Hong Kong

that little progress against corruption can be made

without Clause 10 which is considered to be the heart

of the Bill.

(iii) The clause is in substance based on the considered

advice of the Hong Kong Advisory Committee on Corruption

who have repeatedly expressed dissatisfaction at the

extent to which their advice has been ignored and this

matter delayed.

(iv)

The clause may well not be used very frequently but it is

an essential ingredient of the legislation, not only because it is a strong deterrent (fear of being found

out is the main deterrent to corruption and since bribery

is normally a two-way exchange of benefits the law otherwise will not be a strong deterrent); but also

because it is evidence of a determination to tackle

corruption vigorously. The Governor has stated that

cases exist now which could be proceeded with if the

provisions of the clause were in force but on which no progress is possible without them.

(v) The excision of the clause after its publication and

acceptance by representative bodies in Hong Kong will be

seen to have been done at HMG's insistence and public

servants and the public will draw the conclusion that

HMG do not regard corruption as a particularly serious matter and that it can be indulged in with comparative impunity. (This point arises only because the Bill was

originally published in Hong Kong without prior reference to the FCO).

CONFIDENTIAL

/ 9.

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