TNAG-2390-FCO40-3472-Extradition-from-the-UK-to-Hong-Kong-case-of-Lorrain-Esme-Os-1991 — Page 222

CONFIDENTIAL

FM HONG KONG

TO DESKBY 09093OZ F C O

TELNO 2788

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OF 09034OZ AUGUST 91

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5. Jaly

il- Mgons

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TOP: OPY or

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076311

MDHIAN 1791

HKD 384/1.

LORRAIN OSMAN: LETTER FROM KEVIN CAHILL TO SIR

YOUR TELNO 1623

J COLES

THE BACKGROUND TO KEVIN CAHILL'S LETTER IS AS FOLLOWS: IN THE COURSE OF THE LAYTON AND PICKEN TRIAL, A DOCUMENT WHICH HAD BEEN FOUND IN LAYTON'S POSSESSION WAS PRODUCED IN EVIDENCE. IT WAS A FILE NOTE MADE BY LAYTON OF A CONVERSATION THAT HE ALLEGEDLY HAD WITH WARWICK REID IN FEBRUARY 1988 CONCERNING THE PROSECUTION OF THE LOW BROTHERS OF KA WAH BANK. THE FILE NOTE BY LAYTON INDICATED THAT A GOVERNMENT OFFICIAL IN TAIWAN WAS IN A POSITION TO PROCURE THE RETURN OF TWO LOW BROTHERS (WANTED IN HONG KONG FOR A MASSIVE BANK FRAUD) AND THAT FOR THE SUM OF NT DOLLARS 2,500,000 PLUS AIR TICKETS THIS COULD BE ACHIEVED. IT WAS SAID THAT THE THEN DPP AND AG WERE AGREEABLE TO PAYING THIS MONEY IF THEIR NAMES WERE KEPT OUT OF IT. THAT NOTE WAS READ OUT IN COURT AND RESULTED IN THE SOUTH CHINA MORNING POST REPORTING ITS CONTENTS ON 9 JULY THIS YEAR. (WE ARE FAXING YOU SEPARATELY A COPY OF THE MORNING POST STORY).

2. IT SEEMS THAT LAYTON DID PUT TO REID A PROPOSAL TO BRIBE OFFICIALS IN TAIWAN IN ORDER THAT THE LOW BROTHERS COULD BE SENT BACK TO HONG KONG. LAYTON WANTED TO KNOW WHETHER OR NOT THE THEN AG AND THE THEN DPP WOULD DECLINE TO PROSECUTE IF THEY WERE RETURNED TO HONG KONG UNDER THOSE CIRCUMSTANCES. THERE WAS NEVER ANY SUGGESTION THAT THE THEN AG (MICHAEL THOMAS), OR THE THEN DPP (JAMES FINDLAY) HAD EVER PROPOSED THAT TAIWANESE OFFICIALS BE BRIBED TO RETURN THE LOW BROTHERS. THEIR ATTITUDE WAS THAT THERE WOULD BE NO REASON NOT TO PROSECUTE IF THE LOW BROTHERS WERE BROUGHT BACK UNDER THOSE CIRCUMSTANCES.

3.

THE DAY AFTER THE DOCUMENT WAS PRODUCED IN COURT THE LEADING COUNSEL FOR THE CROWN (JOHN SPOKES QC) MADE A STATEMENT THAT THERE WAS NO EVIDENCE THAT THE FORMER AG OR DPP WAS IN ANY WAY INVOLVED IN AN ARRANGEMENT TO PAY BRIBES TO HAVE THE LOW BROTHERS BROUGHT BACK FROM TAIWAN. WE ARE ALSO FAXING YOU SEPARATELY A COPY OF A TRANSCRIPT OF WHAT WAS SAID IN COURT BY SPOKES. DESPITE THE HOPE BY THE JUDGE THAT THE REMARKS WOULD BE NOTED BY THE

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