CONFIDENTIAL

FM FCO

TO IMMEDIATE HONG KONG

TELNO 718

OF 271621Z JULY 93

INFO PRIORITY PEKING

CONFIDENTIAL

Mis

HKB 011/10

RECE

GISTRY

Q^ ** 1993

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INDLA

PA

REGISTRY

Action Taker

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110766 MDHOAN 6121

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YOUR TELNO 1243: LEE AND SZETO VS LI

AND TA KUNG PAO

1. Martin Lee reported the difficulties he is having securing Legal representation when he met Mr Goodlad and the Secretary of State on 27 July. He made similar points to those in TUR about the reluctance of Hong Kong Chinese solicitors to act for him in his libel case. (According to Lee, one firm were motivated by the fact that they act for the Bank of East Asia of which Simon Li is a director). Lee said that a friend who operates in Macau had told him a year ago of a commercial dispute between two prominent Macau businessmen, where one of them was unable to secure legal representation because the other was too well connected with China interests. Lee had thought this could never happen in Hong Kong, but now it had happened to him he had to ask 'what price the rule of law after 1997?' The Secretary of State said that he took Lee's point, and hoped that Lee would find a solicitor prepared to act for him.

2.

News

In a press conference after his meetings with Ministers, Lee evidently told the press that he had raised this issue. Department have been asked for comments on the wider implications of the case. We have taken the following Line:

Mr Lee mentioned these matters to Mr Goodlad and the Secretary of State, who took note.

- (Defensive) This is a private matter as we understand it, an alleged libel case. Remedies for libel are available under Hong Kong Law.

- (If pressed) This is a private matter for Mr Lee. But

naturally we would hope that solicitors in Hong Kong would act in accordance with the professional standards expected of practitioners in the Hong Kong and British Legal systems.

HURD

PAGE 1 CONFIDENTIAL

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