CONFIDENTIAL
Tel issued.
Pw (31)
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
TELNO 2706
(AMENDED DISTRIBUTION)
OF 07090OZ SEPTEMBER 90
INFO PRIORITY WASHINGTON
004722 MDLIAN 0024
TOP COPY Q DIST?
OUR TELNOS 2038 AND 2608 : DESIGNATION OF THE US UNDER THE DRUG
TRAFFICKING (RECOVERY OF PROCEEDS) ORDINANCE
=
1 THE SECOND ROUND OF TALKS WITH THE U.S. WAS HELD IN HONG KONG FROM 4-6 SEPTEMBER. THE U.S. SIDE MADE IT CLEAR FROM THE OUTSET
THAT BECAUSE OF THE SIGNIFICANT AREAS OF DIFFICULTY DESCRIBED
IN PARA 2 OF 1ST TUR THEY SAW NO PROSPECT OF FINALISATION OF A
COMPREHENSIVE AGREEMENT AT THIS STAGE.
2. THEY PROPOSED THEREFORE TO CONCENTRATE ON AN AGREEMENT LIMITED
IN SCOPE TO RESTRAINT AND CONFISCATION OF ASSETS, AS DESCRIBED IN PARA 3 OF 1ST TUR. NEGOTIATION PROCEEDED ON THIS BASIS, AND AN AGREEMENT WAS INITIALLED ON 6 SEPTEMBER. A COPY OF THE INITIALLED TEXT FOLLOWS BY FAX FOR YOUR INFORMATION.
3. YOU WILL NOTE THAT THE INITIALLED TEXT OMITS THE COMMITMENT TO FURTHER NEGOTIATION CONTAINED AS ARTICLE IX IN THE DRAFT ''SHORT FORM'' AGREEMENT FAXED TO YOU EARLIER. THE U.S. SIDE STATED THAT
THEY WOULD PREFER DISCUSSION OF THE EXTENSION OF THE SCOPE OF COOPERATION, AND THEREFORE THE AREAS OF DIFFICULTY ASSOCIATED WITH THIS, TO TAKE PLACE IN THE CONTEXT OF LATER COMPREHENSIVE
MUTUAL LEGAL ASSISTANCE NEGOTIATIONS. WE ARE CONTENT WITH THIS
APPROACH.
WILSON
YYYY
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