CONFIDENTIAL

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5.

Dr Mahathir raised the Osman case when he called on the Prime Minister in December 1990. He was particularly concerned that if convicted and the sentence extended beyond 1997, Osman might have to serve in a jail in mainland China. Dr Mahathir asked if it would be possible to serve the sentence either in Malaysia or UK rather than Hong Kong. He also expressed concern about Osman's safety in Brixton jail, following his transfer there from Pentonville. The

Home Office will be submitting a draft letter from the Prime Minister to Dr Mahathir, responding to these points, in the week commencing 13 May. A copy of the draft, which has been cleared with all concerned (including the Hong Kong Government and our own Legal Advisers), is attached.

6. We cannot give a categorical assurance that Osman, if

convicted, would not be transferred to the mainland after

1997. However the Joint Declaration and the Basic Law provide for the continuation of the present judicial and legal system of Hong Kong.

7. It might be possible for Osman to serve his sentence in Malaysia provided that he and HKG agree and that Malaysia enacts domestic legislation to accommodate such a transfer. It would be for the Malaysian authorities to take this up with Hong Kong.

MTHAUF/3

CONFIDENTIAL

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