She made the remarks at a ceremony during which the US Consulate General to Hong Kong presented a cheque of 2.9 million US dollars to the Hong Kong Special Administrative Region government. The money represents part of the assets seized in an international drug trafficking case.

Ip said that Hong Kong and the United States have enjoyed excellent law enforcement cooperation in a wide range of areas for many years. Criminal activity and the proceeds of crime do not stop at national borders. That is why it is vitally important for different jurisdictions to join hands in fighting transnational crime and confiscating the proceeds of those criminal activities.

"One of the lessons we learned from the terrible events of September 11 is that we cannot take our safety and security for granted. And that is why we are more alert than ever to the dangers of money laundering and terrorist financing, and the need for cross-boundary cooperation," said Ip.

James R. Keith, US consul general to Hong Kong, said that the United States appreciates the close cooperation between Hong Kong and the US law enforcement authorities on counter-terrorism issues. Hong Kong has an important role to play given its status as a major financial and transportation hub.

Since February 1994, the US Drug Enforcement Administration and the Hong Kong Customs and Excise Department, along with numerous international law enforcement agencies, have conducted an investigation into an international drug syndicate that laundered its proceeds through the acquisition of properties in the United States and France. The properties were owned by Hong Kong-registered companies that were controlled by the drug syndicate.

In March 1994, one of the syndicate's heads, Claude Duboc, was arrested in Hong Kong and extradited to the United States. After his arrest, the Hong Kong Customs and Excise Department searched the premises of 10 companies in Hong Kong and confirmed that Duboc was one of the owners.

The Hong Kong Customs and Excise Department conducted an extensive financial investigation into the Duboc syndicate and traced its funds, discovering 10 million US dollars in offshore accounts. The total assets seized so far in the Duboc case total approximately 100 million US dollars.

The cheque presented to HKSAR on Thursday is in addition to 900,000 US dollars in assets presented in June 2000 by Director Barry McCaffrey of the US Office of National Drug Control Policy. In all, the United States has given Hong Kong approximately 4 million US dollars for its integral contributions to the case.

(Xinhua News Agency July 17, 2003)