TNAG-2913-FCO40-4188-International-support-from-the-USA-regarding-the-future-of-H-1993 — Page 28

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Bilateral cooperation helped break up a major international fraudulent credit card ring and a US dollar counterfeit ring in February. Cooperation in the fight against narcotics smuggling and drug money laundering also is fruitful. In 1992, 15 individuals were extradited from Hong Kong to the United States. Fourteen of the cases were drug-related. This included a major international heroin trafficker, who had smuggled 380 kilograms of heroin to the United States in 1987. Under a bilateral agreement which came into effect in January 1991, the two parties "grant to each other assistance in the freezing, restraining, seizure, forfeiture and confiscation of the proceeds and instrumentalities of drug trafficking." More than $25 million in drug-related assets have been seized in both the United States and Hong Kong under this agreement.

There is a growing problem of smuggling of Chinese illegal aliens to the United States, with Hong Kong companies and individuals substantially involved. We have raised our "côncerns with the Hong Kong government and anticipate that the authorities will intensify actions against would-be smugglers.

(0) Agreements

There are more than a dozen principal U.S. bilateral agreements that presently apply to Hong Kong. Most of these were agreements with the United Kingdom that also apply to Hong Kong. Others are concluded directly with Hong Kong under entrustment from the U.K. Bilateral discussions have not yet been conducted with the PRC concerning continued application of these agreements to the Hong Kong Special Administrative Region (HKSAR).

The U.S. and Hong Kong are currently negotiating three new agreements intended to apply to the HKSAR in the period following 1997, covering air services, extradition, and bilateral investment. Hong Kong's participation in the negotiations was authorized by the Joint Liaison Group (JLG). Progress on all three agreements has been slow. The United States has completed several rounds of talks on the air services and extradition agreements with the Hong Kong government after the JLG approved the relevant model texts. Negotiations on investment protection are at a very preliminary stage.