·CONFIDENTIAL

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6.

g) ICAC:

The team thought that ICAC's procedures were generally

satisfactory and found no evidence to support the contention that they had concentrated unfairly on the RHKPF. They suggested that the Governor should be kept informed of major corruption investigations and recommended that ICAC staff should not be employed continuously on corruption investiga-

tions but should be transferred to other departments of ICAC.

These recommendations have been accepted and are being

implemented.

Other subjects studied by the team included procedures, staff relations, the work of the traffic branch, communications and sport and welfare facilities. Most of their recommendations in these areas have either been accepted or are the subject of further

study at the moment.

7. We have not yet received any assessment from the Governor of

Mr Crane's review. But he seems to have done a very thorough job and come up with a sensible and workable set of recommendations. It is the Governor's intention to invite Mr Crane to return to Hong Kong in early 1979 to review progress in implementing his various recommendations, as he confirmed to Mr Crane in his letter

of thanks.

8. I doubt whether there is any need to go over the ground covered in the ExCo Memorandum in any detail in talking to Mr Crane. But you may wish to ask him for his general impression of the present state of the RHKPF, and for his assessment, in the light of his review, of the prospects for the future. It would also be appropriate to add our own congratulations to those of the Governor for the work that he and his colleagues have done, and for the contribution he has made in enabling the RHKPF to recover from the

trauma of last November.

7 June 1978

cc:

OPA (with Flags)

PS/Lord Goronwy-Roberts 3

Mr Murray News Dept

CONFIDENTIAL

Revanthu

RJT McLaren

Hong Kong & General Dept

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