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receiving commission", "presents" and "expenses". They feel that the effective prohibition of these lubricants will damage their long- standing business practices and will inhibit dealings with foreigners who are themselves used to such practices. Second, the communist owned or dominated businesses, banks and trade unions: any prosecution or indeed investigation of a communist enterprise would do massive damage to their sedulously nurtured image. Worse still, the authorities in Peking would certainly want explanations, possibly explanations to be delivered back in China. It might be argued with some justification that this lowering of morale is an inevitable
result of drastic but necessary attempts to clean up a corrupt society. In general, I would support that argument.
4. On the other hand there is no doubt that some of the activities of the ICAC Operations Branch, particularly under its Head,
Mr Prendergast, who retired at the end of last year were difficult to reconcile with the principles of democracy and English-style justice. The Overseas Police Adviser, who has recently visited Hong Kong, is very concerned about the morale of the Force as a result of ICAC operations. I attach a copy of the relevant part of his report. We have recently had to refuse authority for the enforced early retirement of
who was investigated on suspicion of corruption by the ICAC and against whom no evidence lag C
whatsoever was discovered. I attach an account of the proceedings ached, which make rather disturbing reading. The problem of the continuation/
I have so far variation of ICAC operations is a very difficult one. found it impossible to judge on the evidence available whether ICAC
On is doing its job efficiently, effectively or cost effectively. the one hand Mr Cater told me in October 1976 that he thought that ICAC had broken the back of the problem and that by the end of 1977
The Governor its role and scope will be reduced and reorientated. told Lord Goronwy-Roberts that Sir Robert Mark (who may or may not know what he is talking about) had congratulated him on solving the problem of corruption in the RHKP. On the other hand, Mr Cater told the Overseas Police Adviser that ICAC would be needed (by implication in its present role) for three years at least and we hear that THIS IS A COPY
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