(Adds suspension of extradition bill)
By Greg Torode
HONG KONG, June 15 (Reuters) - Hong Kong leader Carrie Lam has delayed indefinitely a proposed law that would allow extraditions to mainland China, in a dramatic retreat after widespread anger over the bill sparked the biggest street protests in three decades.
The extradition bill, which would cover Hong Kong's 7 million residents as well as foreign and Chinese nationals in the city, was seen by many as a threat to the rule of law in the former British colony.
(To see a live blog of coverage of the Hong Kong protests, click https://reut.rs/2Iajtez)
WHAT DOES THE EXTRADITION BILL INVOLVE?
The Hong Kong government first launched the proposals in February, putting forward sweeping changes that would simplify case-by-case extraditions of criminal suspects to countries beyond the 20 with which Hong Kong has existing extradition treaties.
It explicitly allows extraditions from Hong Kong to greater China - including the mainland, Taiwan and Macau - for the first time, closing what Hong Kong government officials have repeatedly described as a "loophole" that they claim has allowed the city to become a haven for criminals from the mainland.
Hong Kong's leader would start and finally approve an extradition following a request from a foreign jurisdiction but only after court hearings, including any possible appeals. However, the bill removes Legislative Council oversight of extradition arrangements.
If the bill becomes law, it will be possible for mainland Chinese courts to request Hong Kong courts to freeze and confiscate assets related to crimes committed on the mainland, beyond an existing provision covering the proceeds of drug offences.
WHY IS THE HONG KONG GOVERNMENT PUSHING IT NOW?
Officials initially seized on the murder last year of a young Hong Kong woman holidaying in Taiwan to justify swift changes. Police say her boyfriend confessed on his return to Hong Kong and he is now in jail on lesser money-laundering charges.
Taiwan authorities have strongly opposed the bill, which they say could leave Taiwanese citizens exposed in Hong Kong and have vowed to refuse taking back the murder suspect if the bill is passed.
A long-forgotten issue, the need for an eventual extradition deal with the mainland was acknowledged by government officials and experts ahead of Hong Kong's handover from British to Chinese rule in 1997 under the "one country, two systems" model.
The city maintains a separate and independent legal system as part of the broader freedoms the formula guarantees. Little progress has been made in discreet talks since then with justice and security officials on the mainland, where the Communist Party still controls the courts.