TNAG-2165-FCO40-3100-Agreements-between-Hong-Kong-and-third-countries-regarding-d-1990 — Page 84

CONFIDENTIAL

CONFIDENTIAL

FM HONG KONG

TO PRIORITY FCO

TELNO 2038

OF 020933Z JULY 90

TOP COPY HKC3852Q HKC385 2Q DIST?

24 JUL 1990

۳۱۷

uken

111110

MDLIAN 2966 15

HKB 355/1

JUL 990

DESIGNATION OF THE US UNDER THE DRUG TRAFFICKING ( RECOVERY OF PROCEEDS) ORDINANCE *198!

1. FURTHER TO OUR TELNO 003 OF 18093OZ MAY TO WASHINGTON, COPIED TO FCO, THE FOLLOWING REPORTS PROGRESS ON OUR NEGOTIATIONS WITH THE

US.

2. THE HONG KONG TEAM MET WITH A TEAM FROM THE US STATE AND JUSTICE

DEPARTMENTS FROM 4 8 JUNE IN WASHINGTON DC TO CONSIDER A

RECIPROCAL AGREEMENT BASED ON OUR DRAFT MODEL. BECAUSE OF SIGNIFICANT AREAS OF DIFFICULTY RELATING MAINLY TO THE SCOPE OF THE AGREEMENT, THE DEATH PENALTY SAFEGUARD AND THE LIMITATION OF USE PROVISION, WE WERE UNABLE TO INITIAL AN AGREEMENT AT THAT SESSION.

3. TO ENSURE THAT THE US IS INCLUDED IN THE FIRST BATCH OF

JURISDICTIONS TO BE DESIGNATED LATER THIS YEAR, WE PROPOSED THAT, AS AN INSURANCE AGAINST FAILURE TO FINALISE A COMPREHENSIVE AGREEMENT IN TIME FOR DESIGNATION ON THAT BASIS, WE SHOULD PREPARE A 'SHORT FROM DRAFT LIMITED IN SCOPE TO RECIPROCITY AS REGARDS RESTRAINT AND CONFISCATION OF ASSETS. THIS WOULD BE SUFFICIENT FOR THE PURPOSES OF DESIGNATION BUT, BECAUSE OF ITS LIMITED SCOPE, WOULD AVOID THE MAJOR AREAS OF DIFFICULTY. OUR MUTUAL OBJECTIVE, HOWEVER, REMAINS THE FINALISATION OF A COMPREHENSIVE AGREEMENT THE LONG FORM') THROUGH A FURTHER NEGOTIATING SESSION, AND DESIGNATION ON THAT BASIS IF PRACTICABLE.

4. WE HAVE SUBSEQUENTLY ADVISED THE US SIDE THAT WE ARE CONTENT TO SEEK DESIGNATION ON THE BASIS OF THE 'SHORT FORM IF TIMELY AGREEMENT CANNOT BE REACHED ON THE LONG FORM', AND AWAIT THEIR CONFIRMATION THAT THEY ARE WILLING TO DO LIKEWISE.

5. HAVING REGARD TO THE TIME REQUIRED FOR POLICY CONSIDERATION OF THE AREA OF DIFFICULTY IN THE 'LONG FORM' WE HAVE PROPOSED THAT A SECOND ROUND OF TALKS BE HELD IN HONG KONG IN LATE AUGUST/EARLY

SEPTEMBER: WE AWAIT A RESPONSE.

6. COPIES OF THE DRAFT 'LONG' AND 'SHORT FORM' AGREEMENTS RESULTING

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