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INFO PRIORITY HONG KONG
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FCO TELNO 617 TO HONG KONG:
1.
¿LSIG ADO D
LORRAIN OSMAN
OSMAN'S GUILTY PLEA AND SUBSEQUENT ONE-YEAR SENTENCE HAVE BEEN REPORTED PROMINENTLY HERE. THE COVERAGE INCLUDED PASSING REFERENCES TO THE REVIVAL BY LORRAIN'S DEFENCE COUNSEL OF EARLIER SUGGESTIONS OF MALAYSIAN GOVERNMENT COMPLICITY IN THE BMF AFFAIR. BUT THE WHOLE TONE HAS BEEN TO STRESS THAT LORRAIN'S CONFESSION AND CONVICTION DEMONSTRATE THAT HE AND HIS IMMEDIATE ACCOMPLICES WERE SOLELY RESPONSIBLE FOR THE FRAUD.
2.
COPIES OF THE KEY ARTICLES FOLLOW BY BAG.
COMMENT
3. PRIME MINISTER DR MAHATHIR SAID DURING A RECENT PRESS CONFERENCE THAT HE DID NOT EXPECT THE BMF AFFAIR TO GO AWAY ALTOGETHER. IT WAS NOT ENTIRELY CLEAR WHAT HE MEANT BY THIS · PROBABLY THAT THERE WILL BE FURTHER PRESS INSINUATIONS ABOUT THE MALAYSIAN GOVERNMENT'S ROLE DESPITE THE LORRAIN CONVICTION. GOVERNMENT HERE WILL NONETHELESS BE RELIEVED BY THE WAY THE CASE IN HONG KONG HAS GONE, AND ANY VESTIGIAL DANGER OF THE LORRAIN OSMAN CASE RE-EMERGING AS A PROBLEM IN OUR BILATERAL RELATIONSHIP WITH MALAYSIAN HAS DISAPPEARED.
SLATER
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HKD
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HOME OFF/C7 DIV//SMITH
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DISTRIBUTION
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NEWS D
LEGAL ADVISERS
HKD 384/1
29 Ju. 1993
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