TNAG-1651-FCO40-2299-Bankruptcy-in-Hong-Kong-Bankruptcy-(Amendment)-Ordinance-198-1987 — Page 49

Foreign and Commonwealth Office

London SW1A 2AH

PA 10411 (atter).

7

Telephone 01- 270 2958

Your reference

RAJ Bunten Esq APA I

Government Offices

Lower Albert Street HONG KONG

HKC 104/1

RECEIVED IN REGISTRY

26 OCT 1987

REGISTRY

DESK OFFICER TROEX

PA

Action Taken

Our reference

Date 23 October 1987

Dear Red

KA WAH BANK PROSECUTION:

5

EVIDENCE FROM TAIWAN

1. Our telno 2768 of 20 October promised we should send further comments on this case. The following points result from discussions with Legal Advisers.

2.

We have considered section 19A of the Hong Kong Evidence Ordinance and do not think it causes problems over recognition of Taiwan.

3. The question arises as to whether such an approach to the various Taiwanese bodies or authorities to obtain the evidence is permissible at all. As you know we do not recognise Taiwan as State and do not in principle have government-to-government dealings with the nationalist authorities. To approach them for these purposes might be seen as contradicting that policy, and could draw an angry reaction from the Chinese.

4.

We agree therefore than an approach should be hedged around with as many safeguards as possible to make it seem an indirect and low-level contact on a specific and technical matter. In this context it is helpful that the approach would be made through a firm of lawyers; it is also helpful that the Counsel to be sent out will not have any direct contact with the Taiwanese authorities. The lawyers should also be briefed, if possible, to say that they are acting on behalf of the Hong Kong prosecuting authorities rather than on behalf of the Hong Kong Government. This may help to down-grade the contact and give it a rather technical overtone. We also agree that expressions denoting recognition, such as "Republic of China" must definitely be avoided. We suggest the formula "local authorities in Taiwan" could be used when and as appropriate.

5. We too see advantage in approaching the Chinese to inform them of how we intend to act. we shall wish to have a line to take with them which could also be used in public, should questions be asked (if for example, the Taiwanese authorities attempted to make political capital of the approach). This should be that this was

SB6ABQ

CONFIDENTIAL