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Legal advice sought after the paper was circulated to IMO members revealed certain legal inaccuracies which led to the

Hong Kong Government's wish to withdraw the paper

unreservedly.

There was also the risk that the paper could endanger their current discussions with the Chinese on those

incidents which were starting to bear some fruit. In place of the paper, Hong Kong wished to prepare a speaking note, withdrawing the paper, for use at next week's IMO Maritime

Safety Committee (the Chinese have seen the paper but have not

made any comment). Outside the meeting, Mr Morris said the paper was circulated without reference to the Political

Adviser's Office or the International Law Division of Security

Branch.

2.

The incidents concern Chinese official vessels and

officials performing customs functions with a high degree of

force. The problem is in part due to the Chinese operating a

bounty system for officials charged with bringing smuggling to

an end. This presents a high incentive to retrieve goods

using force where necessary. Cases of fire arms being used against merchant vessels are not uncommon and a cause for

concern. However, it is unlikely that victims of these operations report attacks as more often than not the cargo they are carrying is smuggled. Mr Morris pointed out that

although the Chinese official interceptions are truly aimed at

curbing smuggling, the methods used to retrieve the cargo

exceed the bounds of reasonable force. But to say that the

Chinese are involved in Piracy is taking matters too far.

3.

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Mr Wall of the Department of Transport pointed out the

pitfalls in withdrawing the paper at this stage. To withdraw now would be tactically unwise in terms of the IMO's operating procedures. Any withdrawal would simply draw unwanted

attention to the paper. He doubted whether the Chinese IMO delegate would react to the paper. On reflection, the Hong

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