Pubdate: Sat, 22 Jul 2000
Source: South China Morning Post (Hong Kong)
Copyright: 2000 South China Morning Post Publishers Limited.
Contact:  http://www.scmp.com/

SAR WORKS FOR REMOVAL FROM US DRUG 'HIT-LIST'

Considerable luck would still be needed for Hong Kong to be struck from an 
American global "hit list" of major illegal drug trafficking and money 
laundering centres, a senior SAR official warned yesterday.

Commissioner for Narcotics Clarie Lo Ku Ka-lee said she had been given 
assurances from US officials that Hong Kong would be dealt with fairly and 
squarely but no guarantees that it would be pulled from the list.

"I am confident there is now a greater understanding of all our efforts in 
Washington and I think they are impressed at everything we are doing," Ms 
Lo said after a week-long trip to the US capital. "We are still going to 
need some luck I think . . . this is an issue we will have to keep working on."

Hong Kong's position on an annually updated White House list of drug 
centres has been a source of increasing annoyance and embarrassment to the 
Government, ranking the SAR along with countries including Panama, Vietnam 
and Columbia. The list, last revealed by President Bill Clinton on State 
Department recommendations in March, included the SAR in a list of states 
co-operating with US government efforts as well as taking their own 
enforcement action but still deemed major transit points.

Ms Lo met senior State Department, Customs, FBI and Drug Enforcement 
Administration officials as well as the White House's "drug czar", General 
Barry McCaffrey. Getting Hong Kong off the list was the priority of the 
trip - her second in less than a year to claim firm enforcement action.

Mr McCaffrey visited Hong Kong last month and expressed satisfaction at the 
territory's efforts and said he would be recommending its removal from the 
list.

However, his is just one of several opinions involved in the decision and 
other officials warned that no final decisions have been made, Ms Lo said.

She said she outlined legislative proposals to make money laundering easier 
to enforce, and recent regulations to tighten supervision of the SAR's 
extensive network of money changers and remittance agencies.
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