Foreign and Commonwealth Office
London SW1
8
HN A Willcox Esq 10 Beech Walk
London NW7
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REP.
Your reference
Our reference
Date
НКК 14/3
18 April 1974
As promised in Mr Holt's letter of 20 March, I am now sending you a fuller reply to your letter of 16 March. I am sorry not to have been able to do so sooner.
We agree that the situation in Hong Kong as regards corruption gives cause for concern. Because of the importance of the matter, discussions were held in London last summer between Sir Alec Douglas-Home, then the Foreign and Commonwealth Secretary, and the Governor. We have subsequently been in frequent touch with the Governor on the subject. The Governor is taking very determined measures to combat the problem of corruption and in this he has the full support of the Secretary of State. You may be interested to see the enclosed extract from the Governor's policy speech of 17 October last, made at the opening of the latest session of the Hong Kong Legislative Council, which deals with the subject.
Since that speech, the new Independent Commission Against Corruption has been established, as you know, under Mr Jack Cater. We believe that the new Commission should be given every support and the chance to achieve results. It is our hope that the Commission, with independent direction and with help from the Royal Hong Kong Police Force, and also with the assistance which we are making available from the Police in this country, will be able to tackle the problem firmly, quickly, and effectively. Indeed it is already producing results and has brought some cases to court.
Your letter also refers to our "profiteering out of Hong Kong." I am not sure exactly what you have in mind, but you imply that taxation in Hong Kong is levied by HMG and accrues to the British Exchequer. This is not the case. Taxation in Hong Kong is an internal matter, and as such entirely for the Hong Kong
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