TNAG-1996-FCO40-2843-Hong-Kong-Drug-Trafficking-(Recovery-of-Proceeds)-Ordinance--1991 — Page 118

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MDLIAN 7537

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RECIPROCITY. BESIDES, THE LACK OF PRECISION AND LIMITS IN SUCH AN OPEN-ENDED ONE SIDED COMMITMENT COULD STRAIN OUR RESOARQUZS JH FJ

UHOVE US NO NEGOTIATING POSITION AS REGARDS COSTS OF ENFORCING EXTERNAL ORDERS. IT WOULD ALSO SET A BAD PRECEDENT FOR OTHER

COUNTRIES WHICH WE WOULD LIKE TO DESIGNATE ONLY ON THE BASIS OF

BILATERAL AGREEMENTS.

(B) TO DESIGNATE THE U.S. WITH AN UNDERTAKING FROM THEM AS TO RECIPROCITY.

THIS IS NOT POSSIBLE BECAUSE CURRENT U.S. LEGISLATION CAN ONLY PROVIDE RECIPROCITY ON THE BASIS OF AN AGREEMENT. BESIDES, THIS OPTION WOULD HAVE THE SAME DISADVANTAGES AS OPTION (A) EXCEPT ON THE QUESTION OF RECIPROCITY.

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(C) THE HAVE THE UK/U.S AGREEMENT APPLIED TO HK AS THE PRE-

REQUISITE FOR DESIGNATION.

THE U K/U.S. AGREEMENT DOES NOT MEET ALL OUR NEEDS (EG WE WOULD PROBABLY NEED A CLAUSE ON THE RESOURCE CONSIDERATION). IT WOULD ALSO SET A BAD PRECEDENT FOR MLA ARRANGEMENTS WHERE WE INTEND TO CONSTRUCT (UNDER UK AUTHORIZATION) OUR OWN ARRANGEMENTS, AND MAKE THE TRANSITION FROM THE DRUG AGREEMENT TO THE MLA AGREEMENT MORE DIFFICULT. ALSO, WE UNDERSTAND THAT YOU ARE NOT VERY HAPPY WITH THE AGREEMENT THAT YOU NOW HAVE WITH THE U.S. ARE YOU ABLE TO ADVISE WHAT

THE UNSATISFACTORY AREAS ARE?

(D) WE ENTER INTO OUR OWN AGREEMENT WITH THE U.S. AND THEN ON THIS BASIS DESIGNATE THEM.

THIS OPTION DOES NOT HAVE THE DISADVANTAGES OF OPTIONS A-C AND WOULD

ALLOW OUR SPECIAL NEEDS TO BE BETTER CATERED FOR. IF SUCH AN AGREEMENT WERE TO CONTINUE POST 1997 WE SHOULD NEED TO CONSULT THE CHINESE. (THIS REQUIREMENT IN FACT APPLIES TO ALL THE FOREGOING OPTIONS). HOWEVER, WE EXPECT THAT SUCH DRUG AGREEMENTS WOULD BE SUBSUMED UNDER EVENTUAL MLA ARRANGEMENTS WHICH WE ARE PLANNING TO

ENTER INTO WITH THE U.S. AND OTHER JURISDICTIONS. IN THAT CASE IT WOULD BE BETTER TO LEAVE OUR CONSULTATION UNTIL THAT STAGE IS REACHED. THUS, IF WE ARE TO AIM FOR A TIME-LIMITED AGREEMENT, SAY FOR 3 YEARS, WITH A VIEW TO HAVING IT SUBSUMED UNDER A FUTURE MLA AGREEMENT, WE WOULD NEED ONLY TO INFORM, RATHER THAN CONSULT, THE CHINESE AT THIS STAGE ON OPTION D. THE TIME-LIMITED AGREEMENT COULD BE EXTENDED, SAY, ON A YEARLY BASIS, IF CIRCUMSTANCES SO REQUIRE.

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