CONFIDENTIAL

The

widespread syndicated corruption still exists in the Police. prosecution record of ICAC is 144 charges (of which many were multiple charges against single accused persons) brought in 1975 resulting in 111 convictions. These figures when compared with the size of the RHKP (17,200) and the population of Hong Kong (officially 4.5 million but probably many more) are not very impressive.

one.

5.

It is difficult to decide whether the time is now ripe to call for an evaluation of ICAC's activities. The Hong Kong Government would certainly resent what they would regard as an unwarranted interference in their affairs. There would be some justice in such a stance. The ICAC operation was undertaken with the full support of Ministers: the corruption problem was undoubtedly an enormous

Three years is not a very long time to deal with such a problem. The difficulty of setting up such an operation, establishing methods and actually carrying out investigations, many of which by their nature must be long-drawn, have been great. I do not therefore recommend that we should suggest an appraisal of the ICAC at this time. Mr Murray and I will be visiting Hong Kong in March and I propose that we should discuss this particular problem informally

then.

6. I believe that if corruption is to be stamped out in Hong Kong the ICAC or some similar body must be allowed to pursue its activities vigorously. That is the line that Ministers have taken in the past in Parliament. I believe further that much of the present public reaction against ICAC is caused by the fact that the Commission has recently turned its attention to corrupt activities in the commercial sector and that those taipans who insist on a completely honest Police Force and Public Service are now squealing because the same standards are expected from them. I also believe and so recommend that the justifiable alarm felt by the honest citizens of Hong Kong, both in the official sector and otherwise, could be allayed to some extent by the appointment of a completely impartial review and appeal authority. This might take the form of an Ombudsman, i.e. a person to whom all appeals against administrative injustices: or malpractices

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