TEXT: INTERNATIONAL NARCOTICS REPORT -- HONG KONG
(Excellent U.S.-Hong Kong cooperation on combatting drugs)

The State Department has just released its annual International Narcotics Control Strategy Report (INCSR), to accompany the release of the president's drug certification decisions. Following is the section on Hong Kong:

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STATEMENT OF EXPLANATION

HONG KONG

Hong Kong's role as a money laundering base for the international drug trade continues to grow, while its role as a transit point for drugs appears to have lessened. There were no drug seizures in the United States in the first 10 months of 1996 unequivocally linking Hong Kong to the U.S. as a transit point for drugs. The overall pattern of drug trafficking in the region, however, continues to point to Hong Kong as a key transshipment point for drugs destined for the U.S. and other Western markets.

Hong Kong authorities continued to strengthen the legislative framework for combatting narcotics trafficking. They extended licensing controls to an additional 21 precursor chemicals, introduced implementing legislation for bilateral extradition agreements and proposed legislation establishing heavier sentences for drug traffickers who target the young. On December 20, 1996, the U.S. and Hong Kong signed an agreement for the surrender of fugitive offenders (an extradition agreement) and the two sides have initialed a Mutual Legal Assistance Agreement that will expand the basis for mutual legal assistance over a wide range of criminal activity, including that currently covered by a Bilateral Narcotics Agreement, which will be terminated by its terms on June 30, 1997.

Hong Kong's mature and experienced law enforcement structure is characterized by dedication and no reported narcotics-related corruption among senior officials. Cooperation between the United States and Hong Kong on matters relating to drug trafficking and money laundering continues to be excellent.

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