Issue

CONFIDENTIAL

Objective/explanation

17

Present status/progress

China

interest

UK

inter

Secretary for Security (Cont'd)

Bilateral drug trafficking

proceeds agreements

The 1971 United Nations Convention on Psychotropic

Substance

To enter into time-limited agreements with foreign jurisdictions based on our draft model agreement as a basis for designation under section 28 of the Drug Trafficking (Recovery of Proceeds) Ordinance 1989. In the case of the UK, to conclude an exchange of letters to enable mutual designation under our respective legislation. These arrangements are intended to be subsumed under comprehensive mutual legal assistance

arrangements before 1997 and therefore the Chinese need only be informed and not consulted.

To seek an extension of the Convention to Hong Kong and declaration that Hong Kong is a separate region under Article 28 of the Convention by the UK.

As

The draft model agreement has been transmitted to the American, Canadian and Australian authorities. Their comments awaited. regards the UK, FCO's agreement is being sought on our proposed arrangement to reach an agreement on the working guidelines prior to an exchange of letters.

FCO's comments on the draft speaking note for use with the Chinese awaited. First draft of the ExCo paper being circulated.

The

UK ratified the Convention in March 1986 and it came into force in June 1986. The UK has not yet applied the Convention to Hong Kong

although Hong Kong in practice complies with its

provisions. It is intended

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