CONFIDENTIAT

Tiii)

It is possible that the only defence which could be sustained under Clause 10 is that the accused had come into possession of "dispropor- tionate" funds through criminal activities other than bribery and it is not right that a man should be forced to admit to the commission of some other criminal offence in order to defend himself against a charge under Clause 107

14. The Governor and his Attorney-General have argued for the retention of the Clause on the following grounds:

(1)

(ii)

(111)

(iv)

Corruption in Hong Kong is a much greater problem than it is in Britain and consequently tougher measures than those which have been effective in Britain are imperative to deal

with it.

A removal of the Clause would be regarded by unofficial members of Councils and the public generally as an unreasonable refusal to allow Hong Kong effectively and comprehensively to tackle the problem of corruption.

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) and because it is evidence of a determination to tackle corruption vigorously.

The excision of the Clause after its publica- tion and acceptance by representative bodies in Hong Kong, will be seen to have been done at H.F.G's insistence and public servants and the public will draw the conclusion that H.M.G. do not regard corruption as a particularly serious matter and that it can be indulged in with comparative impunity.

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