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1.

THE INDEPENDENT COMMISSION AGAINST CORRUPTION

From February 1974 to 1 April 1976 the Independent Commission Against Corruption (ICAC) received 7,026 complaints of corruption, as a result of which 2,820 investigations were launched. 2,436 investigations had been concluded and 408 people were prosecuted resulting in 275 convictions. A further 57 people are still before the Courts.

2. The budget for the ICAC in 1976/77 is being increased to nearly HK$38 million (52%) with the aim of bringing the establishment up to its full strength of 1,000 by the end of the year.

3.

The ICAC received a good press in Hong Kong while its operations were mainly concentrated on the public sector. Now that it has moved into the commercial field some sections of the business community have objected that the ICAC is interfering with "normal business practice". Public concern has also been expressed at the possibility of the Commission's abusing its powers: e.g. in letters to the press; during the debate in the Legislative Council on the 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.

4. The Governor has always advised that it would take some time to break the back of corruption and Ministers, in resisting proposals for some kind of UK Commission of Inquiry, have taken the view that the ICAC should be given the opportunity to carry out its task. They have also defended the operations of the ICAC, while making it clear that the attack on corruption should not be conducted at the expense of the freedom of the individual.

Line to Take

5.

Lord Goronwy-Roberts may wish to ask Sir Y K for his

impressions of the impact which the ICAC is having in the fight

against corruption and of the degree of public support which its operations command.

RESTRICTED

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