Mr Burns

PS/PUS

LORRAIN OSMAN

RESTRICTED'

Jike

37

B

JUL9991

PA

From:

PB Yaghmourfa

SEAD

16 July 1991

Date:

CC:

Mr Carter

Mr Morris, HKD

Mr Parker, Legal Advisers Mr Underwood, CT Division,

Home Office

Problem

1.

A journalist, Kevin Cahill, has written to Sir John Coles about

the Lorrain Osman case. He alleges that meetings and correspondence between Sir David Gillmore and the Malaysian MFA took place in 1983 and were intended to influence the Hong Kong police investigation

into Osman's activities.

Recommendation

2. Mr Cahill has already received two letters from Sir John Coles, in reply to his earlier correspondence on this case. I reconnend

that he should be given a short departmental reply this time, which

goes no further than the line taken by Sir John Coles, and that any future correspondence should be dealt with similarly. I submit a draft of the reply I propose to give. Legal Advisers, HKD and Home

office concur.

.A

Background

3. The PUS will recall the case of Lorrain Osman, a Malaysian businessman held in the UK pending extradition to Hong Kong to face charges of corruption, from his time as High Commissioner in Kuala

Lumpur. A background note by the Home Office is attached.

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