CONFIDENTIAL
FRAUD
Annexure 'I'
Mr Liu Wen commented that China's open door policy had offered opportunities for a number of criminals, masquerading as legitimate businessmen or investors, to perpetrate frauds in the country. He appreciated the difference in the existing legal system in the 2 territories whereby Hong Kong residents could not be returned to China for trial after committing fraud in the mainland. The Chinese authorities had taken various measures in dealing with this crime including sending PSB officers to Hong Kong to collect evidence. Mr Liu said since this crime was on the increase and it was impracticable to send officers to Hong Kong to investigate every case, he proposed that, except in very serious cases, RHKP officers should interview the suspects in Hong Kong and warn them to return to China to settle the matter.
2.
Mr Anning replied that the recommendation was practically difficult because the legal authority in Hong Kong had laid down guidelines in which police were not permitted to warn a person unless there was proof that he had committed an offence. Mr Liu Wen was told however that RHKP officers could interview a person at the request of NCB China and pass on a request to them.
3.
A serious fraud case committed by Hong Kong businessmen to the detriment of 4 Chinese trading companies was brought up by Mr Liu Wen. Although the case was still under investigation by RHKP, Mr Liu complimented the Hong Kong Interpol Bureau for their enthusiasm and professional manner in handling the case.
4.
The Hong Kong side reported that the suspects had been identified but prior to interviewing them, the investigators concerned needed to visit Indonesia to complete the enquiry. Mr Liu Wen was assured that the case would be finalized in the near future.
5.
The Chinese side stressed that co-operation between the 2 sides was important in the investigation of fraud cases and suggested that, in cases of serious nature, members of the Guangdong Interpol Liaison Office should visit Hong Kong to discuss with RHKP officers. CP welcomed the suggestion and felt that both sides should endeavour to work out effective measures and procedure in bringing these criminals to justice.
CONFIDENTIAL