CONFIDENTIAL
HKD 385/2 нко
*
(39
027546
MDLIAN 0290
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 1999
OF 20085OZ JUNE 89
AND TO PRIORITY WASHINGTON, PEKING
•19
Ente +7:
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OUR TELNO 1564: KERRY AMENDMENT TO ANTI-DRUG ABUSE ACT.
FURTHER TO TUR, WE HAD A MEETING WITH RELEVANT GOVERNMENT DEPARTMENTS TO CONSIDER THE AMERICANS' REQUEST (PARA 3 OF TUR).
2. THE ATTORNEY GENERAL'S CHAMBERS ADVISED THAT PROVIDED THE RESTRICTION ON DISCLOSURE IN SECTION 26 OF OUR DRUG TRAFFICKING BILL IS NOT MADE MORE RESTRICTIVE BY LEGCO, AN AGREEMENT BETWEEN HONG KONG AND THE US ALONG THE LINE OF THE UK/US AGREEMENT CONCERNING THE INVESTIGATION OF DRUG TRAFFICKING OFFENCES ETC WOULD ENABLE US TO RENDER THE ASSISTANCE SOUGHT
BY THE AMERICANS.
3. THE COMMISSIONER FOR NARCOTICS ALSO ADVISED THAT WITH YOUR SUPPORT (TELNO 990 OF 5 MAY 1989), SUCH AN AGREEMENT WITH A SPECIFIED TIME LIMIT AND A PROVISION FOR EXTENSION (PARA 4(D) OF OUR TELNO 1376) WOULD BE ENTERED INTO FOR THE PURPOSE OF DESIGNATING THE US.
4
IT IS OUR PRELIMINARY VIEW THAT IT MAY BE POSSIBLE TO MEET THE REQUEST OF THE AMERICANS BY DESIGNATING THE USA UNDER CLAUSE 28 OF THE BILL (ENFORCEMENT OF EXTERNAL ORDERS) COUPLED WITH A BILATERAL AGREEMENT SIMILAR TO THAT BETWEEN THE UK AND US. THE TERMS OF THE AGREEMENT WOULD INCLUDE THE FRAMEWORK NECESSARY TO CONTROL THE EXCHANGE OF INFORMATION ON DRUG TAINTED FINANCIAL TRANSACTIONS.
5. IN ADOPTING THE ABOVE APPROACH, THERE MAY BE OBJECTIONS FROM THE BANKING SECTOR AS IT IS THEIR VIEW THAT REPORTED INFORMATION SHOULD ONLY BE USED TO COMBAT DRUG TRAFFICKING IN HONG KONG. HOWEVER, GIVEN THE IMPORTANCE OF INTERNATIONAL COOPERATION IN COMBATTING DRUG TRAFFICKING AND THAT HONG KONG SHOULD PLAY ITS PART, THE POSITION TAKEN SHOULD BE DEFENSIBLE.
6. THE CHINESE MAY ASK FOR SIMILAR TREATMENT. OUR RESPONSE WOULD BE THAT THEY WOULD NEED TO PUT LEGISLATION SIMILAR TO THE DRUG TRAFFICKING BILL IN PLACE FIRST . SUCH A REQUEST COULD