Mr Colvin

Mr Burns

RESTRICTED

COVERING SECRET

HKD 384

RECENS

23 APR 1991

DESK OFFICER INDEX

GRIPY

PA

kotiute laken

From:

Date:

CC:

-CT 23/4

Ge Ms Barrett

J W Guy

+

Mr

25

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nija 23/4

to por

South East Asia Dept

12 April 1991

PS/PUS

Sir John Coles

Hong Kong Dept

Mr Parker, Legal Advisers

Security Dept

PS/Sir Robin Butler

Sir Arthur Watts

PS/Lord Caithness

LORRAIN OSMAN: ALLEGATIONS OF CORRUPTION BY FCO OFFICIALS

Problem

A 1.

B C

D

Mr Kevin Cahill, a journalist, has written to Sir Arthur Watts

alleging corrupt action by FCO officials handling papers relating to

the request from the Hong Kong authorities to extradite Lorrain

Osman from the United Kingdom to face fraud and other charges. He wrote similar letters to Sir Robin Butler and to Ms Rita Fan, a

member of the Hong Kong Legislative Council. He bases his

allegations on a confidential telegram (Hong Kong telno 2874 of 1985 in FCO) the contents of which could become public knowledge through

Cahill's actions. Should we take legal action to stop him?

Recommendation

2.

I recommend against any legal action to prevent Cahill using the official document in his possession; that we should instead reply to Mr Cahill rejecting his allegations. Legal Advisers, Hong Kong

Department and Treasury Solicitors agree. Sir Robin Butler is

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