Amat Please-
CONFIDENTIAL
Mr Guest
Guert
CORRUPTION IN HONG KONG:
for leaping about
-ialus.
BLAIR-KERR REPORT
A.R
(259)
1956
FLAG B
233
FLAG
246
1. The comments in FCO telegram to Hong Kong no 1000 were
agreed with me before despatch and I thus concur in Mr Stuart's
minute of 15 October.
2. It is now apparent from Hong Kong telegram no 1178 that,
except on the question of the amendment of the Fugitive Offenders
Act and on the establishment of the independent commission, the
Governor proposes only to endorse the objectives of the Blair-
Kerr recommendations and to say that they will have to be looked
at very carefully indeed. He does not propose to announce the
Government's other proposals until 14 or 15 November and this
gives us a little more time to consider Hong Kong's counter-
proposals on some of the issues covered in the enclosure to Mr
Stuart's minute.
3. It would however be useful to know whether Mr Royle accepts
that we are right in going along with Hong Kong on the extension
of Section 10 of the Bribery Ordinance, to provide that an
accused could be convicted for failing to provide adequate
explanation of property held not only by himself but by his
near relatives. This extension of the burden of proof which
already falls on the accused under Section 10 could well be
criticised here and could thus lead to political difficulty in
Parliament. The answer to criticism would have to be that we
had already accepted that in the particular circumstances of
Hong Kong the only effective way of catching the corrupt is by
requiring an explanation of unusual and unexplained financial
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CONFIDENTIAL
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