CONFIDENTIAL

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Mr Goodfellow See reply

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CORRUPTION IN HONG KONG

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The Governor has warned us (Hong Kong telegram No 1181)

may be acquitted on 19 October,

19/0.

largely on the technicality that evidence of his German bank

account may not be legally admissible. This evidence was

obtained in confidence from the German police, and cannot even

be used to confront

2. The Governor is rightly worried that if

is simply

The

allowed to go free, public confidence could be affected.

press are indeed likely to point to

and Godber as dual

examples of the way that the establishment looks after its own,

despite the fact that, in both cases, the Government have done

their best to bring them to justice. The Governor therefore

wants to be able to announce on 19 October what further steps

are to be taken about

He has suggested that

should be retired without pension under Colonial Regulation 55.

3. We have already agreed (FCO telegram No 938, para 7) that

Regulation 55 is appropriate where solid proof of corruption

exists, but where the evidence cannot be produced in court.

This is almost certainly true of

But the legal

advisers consider that the decision cannot be delegated; must

should be taken at Ministerial level here; and must be based on a

CONFIDENTIAL

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