CONFIDENTIAL

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EXEMPTION No ......3.%........

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Commission has already built up an impressive record in this field. During its first two years it has received 7,026 complaints; investigated 2,820 cases; concluded 2,436 investigations; and obtained 275 convictions. As Ministers have stated in Parliament • the Commission has made impressive progress and while much remains to be done it has made a dent in the problem of corruption. The increase of 52% in the Commission's budget for 1976/77 raising it to HK$30 million - will enable its establishment to be brought fully up to strength. The Commission's evident determination seems to have been partly responsible for a relaxing of the pressure on HMG to appoint a Commission of Enquiry into the problem of corruption in the Colony.

2.

Some concern has been expressed in recent months at the possibility of the Commission abusing its powers. This concern has found expression in letters to the Hong Kong press, in the Legislative Council on a Bill to extend the powers of the Commission, and from the Hong Kong Branch of "Justice". Members of Parliament

have also received letters from individuals in Hong Kong concerned

about the abuse of the Commission's powers. The question was discussed with Mr Cater the Commissioner, ICAC, during the latter's recent visit to the Office; but we did not get the impression that he was convinced of the need for some adaptation.

3.

Criticism has centred on the length of time investigations take; on the number of unsuccessful prosecutions; on investigations into the payment of commissions in the private sector (which are considered traditional and on such practices as detaining suspects overnight in windowless rooms and morning raids on suspects before they are awake. Not all of these are justified, particularly in a field where detection is so difficult as in that of corruption; but the application of the methods of early morning raids etc could cause us difficulties in cases, such as that of evidence could not be made to stand up in court.

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