TNAG-1996-FCO40-2843-Hong-Kong-Drug-Trafficking-(Recovery-of-Proceeds)-Ordinance--1991 — Page 282

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2138

OF 290925Z JUNE 89

CONFIDENTIAL

057162

MDLIAN 2749

42

HKD 385/2 to ERD Ri mican copy

YOUR TELNO 990

:

DRUG TRAFFICKING (RECOVERY OF PROCEEDS) BILL 1989 :

DESIGNATION OF COUNTRIES

WE NOTE THAT YOU AGREE IN PRINCIPLE THAT UNDER AUTHORIZATION WE SHOULD NEGOTIATE OUR OWN BILATERAL DRUGS AGREEMENT WITH US WHICH IS INTENDED TO BE TIME-LIMITED, AND ULTIMATELY SUBSUMED UNDER A WIDER MLA AGREEMENT.

2.

WE ARE THEREFORE WORKING ON A DRAFT HK/US DRUGS AGREEMENT, USING THE UK/US AGREEMENT AS A REFERENCE. HOWEVER, WE NOTE THAT THE SCOPE OF THE LATTER IS WIDER THAN WHAT IS STRICTLY REQUIRED FOR THE PURPOSE OF DESIGNATION UNDER YOUR 1986 ACT. FROM OUR POINT OF VIEW WE WOULD PREFER TO HAVE OUR DRUGS AGREEMENT WITH THE US RESTRICTED MAINLY TO WHAT IS REQUIRED FOR DESIGNATION UNDER OUR LEGISLATION. FOR THIS PURPOSE WE WOULD APPRECIATE IT IF YOU COULD

LET US HAVE SIGHT OF ONE OF YOUR AGREEMENTS WITH A FOREIGN COUNTRY OTHER THAN THE US WHICH IS MORE RESTRICTED IN SCOPE.

3.

REGARDING THE BILATERAL DRUGS ARRANGEMENT BETWEEN OURSELVES, WE DID SUGGEST TO THE VISITING UK DRUGS TEAM IN OCTOBER 1988 THAT A HK/UK ARRANGEMENT SHOULD BE DRAFTED IN A FORM CAPABLE, WITH NECESSARY ADAPTATION, OF CONTINUING AFTER 1997. SINCE WE NOW ENVISAGE A COMPREHENSIVE HK/UK MLA ARRANGEMENT TO REPLACE THE CONTEMPLATED HK/UK DRUGS ARRANGEMENT, WE CONSIDER IF SUFFICIENT, FOR THE PURPOSE OF DESIGNATING THE UK UNDER THE DRUG TRAFFICKING (RECOVERY OF PROCEEDS) ORDINANCE, TO CONCLUDE A SHORT EXCHANGE OF THE KIND YOU HAVE BEEN SUGGESTING FOR OTHER DEPENDENT TERRITORIES. THE DETAIL OF WORKING GUIDELINES IN SUCH AN ARRANGEMENT WOULD BE SIMILAR TO THOSE TO BE CONTAINED IN THE PROPOSED HK/US BILATERAL.

4. WE SHOULD BE GRATEFUL FOR YOUR VIEWS ON THE ABOVE APPROACH TO THE HK/UK DRUGS ARRANGEMENT. IF YOU ARE AGREEABLE TO THIS APPROACH, IT WOULD BE USEFUL TO US IF YOU COULD LET US HAVE VIEW OF A DRAFT EXCHANGE OF NOTES YOU EMPLOY WITH DEPENDENT TERRITORIES IN DRUGS ARRANGEMENTS. WE WOULD THEN LET YOU HAVE A DRAFT HK/UK EXCHANGE AS SOON AS POSSIBLE.

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