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CONSIDERABLE BOOST.

4. AN APPROACH TO THE CONSEIL D'ETAT WOULD HAVE TO BE MADE WITHIN TWO MONTHS OF 19 SEPTEMBER, THOUGH WE SHOULD NEED TO INDICATE THAT WE WERE GOING TO FOLLOW THIS ROUTE PREFERABLY BEFORE 19 SEPTEMBER. AN APPROACH COMES IN TWO PHASES, FIRST A SHORT ANNOUNCEMENT THAT ONE IS INTENDING TO 'SAISIR LE CONSEIL D'ETAT' TOGETHER WITH A COUPLE OF PARAGRAPHS OF RESUME OF THE CASE, AND SECOND A DETAILED PAPER SETTING OUT THE LEGAL ARGUMENTS. THE LATTER HAS TO BE RECEIVED BY THE CONSEIL WITHIN FOUR MONTHS OF THE INITIAL NOTIFICATION.

5. OUR RECOMMENDATION IS THAT WE SHOULD FOLLOW COUNSEL'S ADVICE. OBVIOUSLY CREATING A PRECEDENT OF THIS KIND WOULD BE UNWELCOME TO THE FRENCH GOVERNMENT, BUT COUNSEL'S SUGGESTED TACTICS ARE THAT THE INITIAL COMMUNICATION SHOULD BE PHRASED IN SUCH A WAY AS TO ALLOW THE MINISTRY OF JUSTICE A LET-OUT (I.E. THAT THEY SHOULD ACCEDE TO OUR DEMANDS, WITHOUT THE MATTER BEING CONSIDERED BY THE CONSEIL D'ETAT). MME MASSE-DESSEN IS CONFIDENT THAT A WATERTIGHT LEGAL DOCUMENT OF A NON-CONFRONTATIONAL KIND CAN BE DRAFTED. SHE WOULD UNDERTAKE THIS HERSELF IN CLOSE LIAISON WITH CLIFFORD CHANCE.

6. GRATEFUL FOR AN INITIAL REACTION TO THE ABOVE IF POSSIBLE ON THE MORNING OF 18 SEPTEMBER. INCIDENTALLY, OUR RECOMMENDATION IS MADE ON THE ASSUMPTION THAT IN SUCH A LARGE FRAUD CASE THE ADDITIONAL LAWYERS FEES WHICH CONTINUING THE APPEAL PROCESS WILL CERTAINLY ENTAIL CAN BE MET BY THE HONG KONG GOVERNMENT.

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