TNAG-1996-FCO40-2843-Hong-Kong-Drug-Trafficking-(Recovery-of-Proceeds)-Ordinance--1991 — Page 117

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DRUG TRAFFICKING (RECOVERY OF PROCEEDS) BILL 1989:

DESIGNATION OF COUNTRIES

1. OUR DRUG TRAFFICKING

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(RECOVERY OF PROCEEDS) BILL 1989 HAS

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PROVISIONS FOR THE DESIGNATION OF COUNTRIES FOR THE PURPOSES OF ENFORCING EXTERNAL CONFISCATION ORDERS. THE AMERICANS ARE VERY KEEN

TO BE SO DESIGNATED AS SOON AS OUR BILL BECOMES LAW. THEY HAVE INDICATED THAT, AS AN INTERIM ARRANGEMENT PENDING A BILATERAL AGREEMENT ON THIS, THEY COULD LET US KEEP ALL THE MONEY CONFISCATED IN HK (AS FAR AS U.S. CASES GO), IF THEY WERE DESIGNATED.

2. WE ARE AWARE THAT UNDER THE UN CONVENTION AGAINST ILLICIT DRUG TRAFFICKING, PARTIES ARE OBLIGED TO RENDER LEGAL ASSISTANCE ON DRUG MATTERS TO ONE ANOTHER. THE QUESTION OF DESIGNATION OF COUNTRIES IN THIS CONTEXT, WHICH WILL ARISE WHEN THE CONVENTION HAS BEEN APPLIED TO HK, IS A MATTER FOR SEPARATE CONSIDERATION. THE PURPOSE OF THIS COMMUNICATION IS TO SEEK YOUR VIEWS ON THE QUESTION OF DESIGNATION

UNDER OUR NEW BILL BEFORE THE UN CONVENTION IS APPLIED TO HK.

3. IN THE PAST YEAR OR SO WE HAVE BEEN UNDER CONSTANT PRESSURE FROM

THE AMERICANS FOR GREATER MUTUAL LEGAL ASSISTANCE ON DRUG MATTERS.

PART OF OUR RESPONSE TO SUCH PRESSURE HAS BEEN THAT OUR RECOVERY OF PROCEEDS BILL WOULD OPEN UP NEW AREAS FOR MUTUAL ASSISTANCE. IT WOULD BE DIFFICULT AND INADVISABLE TO POSTPONE THE CONSIDERATION OF

DESIGNATION UNTIL AFTER THE NEW UN CONVENTION HAS BEEN APPLIED TO HK.

4. ON THIS BASIS WE HAVE CONSIDERED A NUMBER OF OPTIONS:

(A) TO DESIGNATE THE U.S. UNILATERALLY AS PROPOSED BY THEM, WITH WHATEVER NECESSARY CONDITIONS AS PERMITTED BY THE NEW ORDINANCE

PROVIDED IN THE ORDER OF THE GOVERNOR-IN-COUNCIL.

THE AMERICAN OFFER TO LET US KEEP ALL THE MONEY APPEARS GENEROUS SUPERFICIALLY. HOWEVER, MY LEGAL ADVISERS TELL ME THAT IF OUR GOAL WERE MAINLY MONEY, WE COULD OBTAIN IT BY OURSELVES BY TAKING EXTRA- TERRITORIAL JURISDICTION AND INVITING THE U.S. TO PROVIDE US WITH THE

EVIDENCE. THE DISADVANTAGE OF OPTION A IS THAT IT DOES NOT PROVIDE

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