• 415

IMEDIATE

CYPHER/CAT A

FM HONG KONG 188755Z

CONFIDENTIAL.

CONFIDENTIAL

Dee (118

TO IMMEDIATE F.C.O TELNO.500 OF 18 APRIE

HKK Sea/2 382/2

INDEX

19/3

No

Mind Che

an

(14)

YOUR TELNO.303.

(113

THE FOLLOWING REPLIES TO THE P.Q.S ARE SUGGESTED:

1. MR COSTAIN 'A TOTAL OF 210 CARS HAVE BEEN ORDERED FROM

METRO-CAMMELL AT AN APPROXIMATE TOTAL COST OF H.K DOLLARS SEVEN HUNDRED MILLION INCLUDING AN ALLOWANCE FOR INFLATION TO THE END

OF THE CONTRACT.'' (WE PRESUME THAT YOU WILL PRODUCE THE FIGURE FOR THE EFFECT ON EMPLOYMENT IN U.K).

2, 14R WALKER WE ASSUME THAT THIS REFERS TO STATEMENT ON 3 APRIL

BY MR MILES JACKSON-LIPKIN, QC AS DEFENCE COUNSEL IN A TRIAL AT VICTORIA DISTRICT COURT. HE WAS DEFENDING OWNERS OF TWO NIGHT

CLUBS WHO PLEADED GUILTY TO CHARGES OF EVADING H.K DOLLARS ONE

POINT FIVE MILLION OF TAX. IN MITIGATION HE CLAIMED THAT HIS

CLIENTS HAD TO MEET OPERATING EXPENSES INCLUDING PAYMENTS TO FOLICE AND TRIADS, THAT PAYMENTS TO POLICE WERE CONTINUING, THAT

HIS CLIENTS WERE AFRAID TO REPORT TO ICAC, AND THAT THE AUTHORITIES. MERE IGNORING THE FACT THAT CORRUPTION WAS WORSE THAN BEFORE THE

AMNESTY, DESPITE PROSECUTING COUNSEL OBJECTIONS ABOUT ABSENCE OF EVIDENCE THE SPEECH WAS ALLOWED TO STAND BY JUDGE COLLIER WHO

IS REPORTED TO HAVE SAID THAT HE WOULD HAVE FINED THEM MORE BUT FOR THE FACT THAT HE ACCEPTED THE STATEMENT. ICAC HAS FOLLOWED UP BUT HAS SO FAR BEEN UNABLE TO INTERVIEW THE CLIENTS. ICAC CONSIDER THE STATEMENT TO BE A WILD EXAGGERATION. WE SUGGEST A

REPLY ALONG THE FOLLOWING LINES:

''I PRESUME MY HON. FRIEND IS REFERRING TO A RECENT STATEMENT IN MITIGATION BY DEFENCE COUNSEL ACTING FOR CLIENTS PLEADING GUILTY TO TAX EVASION CHARGES. THE INDEPENDENT COMMISSION AGAINST CORRUPTION CONSIDER THE CHARGES UNFOUNDED BUT ARE SEEKING, SO FAR UNSUCCESSFULLY, TO INTERVIEW THOSE ON WHOSE BEHALF THE CLAIM WAS

MADE.**

CONFIDENTIAL

/3.

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