TNAG-1996-FCO40-2843-Hong-Kong-Drug-Trafficking-(Recovery-of-Proceeds)-Ordinance--1991 — Page 348

CONFIDENTIAL

NTIAMED 385/2

19

073555

MDHIAN 4820

ра

CONFIDENTIAL

FM HONG KONG

TO IMMEDIATE FCO

TELNO 1564

OF 16093OZ MAY 89

AND TO IMMEDIATE WASHINGTON, PEKING

-(18)

YOUR TELNO 1004 : KERRY AMENDMENT TO ANTI-DRUG ABUSE ACT

AT THE REQUEST OF THE AMERICANS, WE HAD A MEETING WITH ART KOBLER, DEPUTY CONSUL GENERAL AND OTHER REPRESENTATIVES FROM THE AMERICAN CONSULATE GENERAL YESTERDAY, THE RECORD OF WHICH FOLLOWS BY FAX.

2. THE MEETING WAS FRIENDLY. THE AMERICANS SEEMED TO BE QUITE IMPRESSED BY THE STEPS WE HAVE TAKEN TO COMBAT DRUG TRAFFICKING AND MONEY LAUNDERING. WE POINTED OUT THAT HONG KONG HAD A GOOD TRACK RECORD OF CO-OPERATING WITH THE US FEDERAL AND LAW ENFORCEMENT BODIES. WE STRESSED THAT LARGELY FOR REASONS OF EXTRA-TERRITORIALITY, WE REGARDED ANY ATTEMPT TO IMPOSE US STANDARDS ON BANKS OPERATING IN HONG KONG (OR BRITIAIN) AS COMPLETELY UNACCEPTABLE. THE US TEAM APPEARED TO BE QUITE RELAXED AND DID NOT TAKE ISSUE WITH US. THEY SEEMED TO ACCEPT THAT HONG KONG AND US SHARED THE COMMON OBJECTIVE OF COMBATTING MONEY LAUNDERING ALTHOUGH DIFFERENT MEANS WERE USED.

3. THE AMERICANS ENQUIRED WHETHER, AS A BASIS FOR UNDERSTANDING, A MECHANISM COULD BE WORKED OUT WHEREBY THE US LAW ENFORCEMENT AGENCIES WOULD BE GIVEN ACCESS TO INFORMATION ON SUSPICIOUS TRANSACTIONS INVOLVING US CURRENCY REPORTED BY LOCAL FINANCIAL INSTITUTIONS. WE EXPRESSED RESERVATIONS ABOUT THE PROPOSAL BUT AGREED TO CONSIDER IT CAREFULLY AND REVERT TO THEM SHORTLY.

WILSON

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