TNAG-1996-FCO40-2843-Hong-Kong-Drug-Trafficking-(Recovery-of-Proceeds)-Ordinance--1991 — Page 244

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MDLIAN 6425

ROR ME

Jon 6/10

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FM HONG KONG

TO PRIORITY FCO

TELNO 3324

OF 06101OZ OCTOBER 89

AND TO PRIORITY PEKING, WASHINGTON

YOUR TELNO 1363: KERRY AMENDMENT TO ANTI-DRUG ABUSE ACT

1. THE DRUG TRAFFICKING (RECOVERY OF PROCEEDS) ORDINANCE (THE ORDINANCE) WAS ENACTED IN JULY 1989. COPIES OF IT HAVE EARLIER BEEN SENT TO YOU.

·

2. WE AGREE WITH THE SECOND AND THIRD SENTENCES OF PARA 3 OF TUR

AND HAVE NOW WRITTEN TO THE AMERICANS PROPOSING TO MEET THEIR REQUEST (PARA 3 OF MY TELNO 1564) THROUGH A BILATERAL AGREEMENT BETWEEN HONG KONG AND THE U.S FOR THE DESIGNATION OF THE U.S. UNDER SECTION 28 OF THE ORDINANCE. WE ENVISAGE INCLUDING IN THE AGREEMENT PROVISION FOR SPECIFIC REQUESTS FOR INFORMATION BETWEEN THE PARTIES BASED ON PARTICULAR DRUG TRAFFICKING INVESTIGATIONS BY ENFORCEMENT AUTHORITIES. ON OUR PART, RESPONSE COULD INCLUDE SUPPLY OF SUCH BANKING INFORMATION REPORTED BY FINANCIAL

INSTITUTIONS UNDER THE ORDINANCE.

3. IN OUR REPLY TO THE AMERICANS, WE HAVE PURPOSELY REFRAINED FROM MAKING SPECIFIC REFERENCE TO THE UK/US AGREEMENT AS SUBSEQUENT TO MY TELNO 1999, WE WERE ADVISED BY THE ATTORNEY GENERAL'S CHAMBERS THAT AN AGREEMENT ALONG THAT LINE WOULD IMPOSE AN OBLIGATION TO RESPOND TO REQUESTS FOR ANY BANK RECORDS ALLEGED BY THE U.S. TO BE RELATED TO DRUG TRAFFICKING.

4. WE NOW AWAIT THE AMERICANS' RESPONSE.

WILSON

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