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Date:

STAY

REGISTRY

South East Asia Dept

April 1991

/PUS

Sir John Coles

Hong Kong Dept

Action Taker Parker, Legal Advisers

Security Dept

Ps/Sir Robin Butler

My Colvid

Mr Butas

Sir Arthur Watts

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LORRAIN OSMAN: ALLEGATIONS OF CORRUPTION BY FCO OFFICIALS

Problem

B C

A 1. 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?

D

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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