CONFIDENTIAL
CONFIDENTIAL
FM HONG KONG
TO PRIORITY FCO
HKB 011/10
RECE
ISTRY
037
1993
TELNO
1243
DESK OFF:
OF 27093OZ JULY 1993
INDZY
REGISTRY
Action Take
INFO PRIORITY PEKING
рапонк
107712
MDLIAN 7624
10)
TOP COPY Q DIST?
LEE AND SZETO VS LI AND TA KUNG PAO
SUMMARY
MARTIN LEE AND SZETO WAH HAVE ENCOUNTERED SERIOUS DIFFICULTIES SECURING LEGAL REPRESENTATION FOR THEIR JOINT ACTION AGAINST SIMON LI AND THE TA KUNG PAO. THEY HAVE BEEN TURNED DOWN BY EIGHT FIRMS OF SOLICITORS SO FAR AND OTHERS ARE SHOWING SIGNS OF RELUCTANCE. THIS PUSILLANIMOUS DISPLAY BY THE LEGAL PROFESSION, IN THE FACE OF REAL OR IMAGINED CHINESE DISPLEASURE, IS A CAUSE FOR SERIOUS CONCERN ABOUT THE PROSPECTS FOR THE RULE OF LAW IN HONG KONG.
DETAIL
2.
ON 15 JULY SEVERAL LOCAL NEWSPAPERS REPORTED RETIRED COURT OF APPEAL JUDGE, AND NOW ONE OF THE SARPC PRELIMINARY WORKING COMMITTEE DEPUTY DIRECTORS, SIMON LI AS SAYING THAT MARTIN LEE AND SZETO WAH COULD NOT QUALIFY FOR THE LEGCO THROUGH-TRAIN. SIMON LI WAS SPEAKING IN PEKING WHILE ATTENDING THE INAUGURAL MEETING OF THE SARPC PRELIMINARY WORKING COMMITTEE. HE WAS REPORTED TO HAVE SAID THAT MARTIN LEE AND SZETO WAH HAD ENCOURAGED DEPOSITORS TO WITHDRAW THEIR FUNDS FROM THE BANK OF CHINA IN PROTEST OVER THE JUNE 1989 TIANANMEN SQUARE MASSACRE. HE APPARENTLY ARGUED THAT THE TWO UDHK LEADERS HAD THUS DEMONSTRATED THAT THEY WERE NOT PREPARED TO UPHOLD THE BASIC LAW AND CONSEQUENTLY COULD NOT EXPECT TO RIDE THE THROUGH-TRAIN. THE PRO-PEKING TA KUNG PAO ENDORSED THESE SENTIMENTS IN A COMMENTARY PUBLISHED ON 17 JULY.
3.
MARTIN LEE AND SZETO WAH DECIDED TO BRING AN ACTION FOR DEFAMATION AGAINST SIMON LI AND THE TA KUNG PAO. THEY APPOINTED A LOCAL FIRM OF SOLICITORS, DEACONS, TO ACT FOR THEM. DEACONS PREPARED THE NECESSARY WRITS BUT THE PARTNERS THEN DECIDED THAT THEY WOULD RATHER NOT TAKE ON THIS WORK. THE GENERAL ASSUMPTION IS THAT THEIR DECISION WAS BASED ON AN ASSESSMENT OF THE FIRM'S COMMERCIAL BEST INTERESTS. DEACONS HAVE A CONSIDERABLE CHINA PRACTICE.
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