TNAG-1996-FCO40-2843-Hong-Kong-Drug-Trafficking-(Recovery-of-Proceeds)-Ordinance--1991 — Page 126

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CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 3795

OF 151045Z NOVEMBER 89

CONFIDENTIAL

cc (with attachment) Mr. Edwardi

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Legal Advisers

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OUR TELNO 3599: DRUG TRAFFICKING (RECOVERY OF PROCEEDS) ORDINANCE 16/11

1989: DESIGNATION OF US

1. AS PROMISED IN PARA 3 OF TUR, A DRAFT MODEL DRUG AGREEMENT FOLLOWS BY FAX TO YOU.

2. SUBJECT TO YOUR COMMENTS ON THE DRAFT AGREEMENT, WE PROPOSE TO TAKE THE FOLLOWING STEPS IN SEQUENCE:

(A) SEEK EXCO'S APPROVAL, IN PRINCIPLE, TO NEGOTIATE AND CONCLUDE WITH THE US ON THE BASIS OF OUR DRAFT:

(B)

NEGOTIATE WITH THE US:

(C) AGREE ON AN INITIAL TEXT WITH THE US:

(D) REQUEST UK'S FORMAL AUTHORIZATION FOR HK TO CONCLUDE A BILATERAL

WITH THE US ON THE BASIS OF THE AGREED TEXT:

(E) IN PARALLEL TO (D), INFORM THE CHINESE OF OUR INTENTION TO SIGN THE AGREEMENT WITH THE US:

(F) CONCLUDE THE BILATERAL AGREEMENT WITH THE US: AND

(G) SUBMIT TO EXCO FOR APPROVAL TO DESIGNATE THE US UNDER OUR DRUG

TRAFFICKING ORDINANCE.

3. APART FROM THE INCREASING PRESSURE FROM THE US FOR A SPEEDY DESIGNATION UNDER OUR DRUG TRAFFICKING ORDINANCE, THERE ARE ALSO PRACTICAL BENEFITS TO HK FOR AN EARLY AGREEMENT WITH THE US. WE

SHOULD THEREFORE BE GRATEFUL FOR YOUR EARLY COMMENTS ON THE DRAFT

AGREEMENT.

FORD