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112765 MDHIAN 9591

GOVERNMENT, YANG ASKED THAT HKG SHOULD ''ORDER'' WU TO LEAVE HONG KONG IMMEDIATELY. HE ALSO ASKED THAT MEASURES BE TAKEN TO PREVENT THE MINIATURES FROM BEING DISTRIBUTED AND THE STATUE FROM GETTING INTO HONG KONG. DPA CONFINED HIMSELF TO THE PERSONAL COMMENT THAT IF MR WU WAS IN HONG KONG LEGALLY, AND HAD NOT BROKEN THE LAW, THERE WOULD BE NO GROUNDS FOR EXPELLING HIM. LIKEWISE, UNLESS THE SMALL REPLICAS WERE IN SOME WAY ILLEGAL, HE COULD NOT SEE HOW WE COULD WISH TO INTERFERE WITH THEIR DISTRIBUTION. HE TOOK NOTE OF YANG'S COMMENTS AND SAID HE WOULD REPORT THEM.

LEGAL POSITION

4. HONG KONG'S IMPORT AND EXPORT LAWS HAVE BEEN DRAFTED TO

BALANCE THE IMPERATIVES OF A FREE PORT AGAINST THE NEED TO EXERCISE SOME CONTROL OVER THE MOVEMENT OF GOODS. EFFECTIVELY, THEREFORE, ALL GOODS CAN BE IMPORTED FREELY INTO HONG KONG WITHOUT THE NEED FOR AN IMPORT LICENCE UNLESS THEY FALL INTO CERTAIN RESTRICTED CATEGORIES WHICH REQUIRE A PERMIT OR LICENCE.

5. FOR EXAMPLE, DUTIABLE COMMODITIES (E.G. TOBACCO, HYDROCARBON OILS, COSMETICS, ALCOHOL) REQUIRE LICENCES. CERTAIN ITEMS CONSIDERED TO BE STRATEGIC COMMODITIES (E.G. HI-TECH MACHINERY) REQUIRE LICENCES, WHILE CERTAIN SUBSTANCES ARE MADE ILLEGAL UNDER OTHER LAWS (E.G. DANGEROUS DRUGS, FIREARMS). BUT OUTSIDE OF THESE LIMITED CATEGORIES, ALL GOODS MAY ENTER HONG KONG WITHOUT RESTRICTION.

6.

CUSTOMS ARE EMPOWERED TO DETAIN GOODS IF THEY HAVE REASONS

TO BELIEVE THAT THEIR IMPORTATION WITHOUT A LICENCE IS PROHIBITED. THEY MAY SEARCH FOR CONTRABAND (GOODS NOT DECLARED ON A SHIP'S MANIFEST) AND FOR PROHIBITED SUBSTANCES SUCH AS DRUGS.

BUT APART FROM THAT THEY HAVE NO POWER IN LAW TO DETAIN GOODS OR

PREVENT THEIR IMPORTATION INTO HONG KONG.

7. IF A STATUETTE IS NOT A DUTIABLE COMMODITY, AND DOES NOT OFFEND ANY STATUTE OR REGULATION, IT CANNOT BE PREVENTED FROM BEING BROUGHT INTO HONG KONG.

8. IN VIEW OF THE LEGAL POSITION DESCRIBED ABOVE WE PROPOSE TO CLEAR THE STATUE THROUGH CUSTOMS. IT IS LIKELY TO BE RELEASED ON 6 JUNE. WE WILL INFORM THE CHINESE OF THIS IN ADVANCE. WU IS A PRIVATE BUSINESSMAN AND OBTAINED NORMAL MULTIPLE ENTRY VISA IN OCTOBER 1990. WE DO NOT PROPOSE TO TAKE ACTION EITHER AGAINST HIM OR HIS KEYRING MINIATURES. THERE ARE NO/NO GROUNDS FOR TAKING

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