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I think this could be a great idea if it would always be used when police officer has to testify in court, currently most lawyers advice you never speak to a police officer under any circumstance : http://www.youtube.com/watch?feature=player_detailpage&v=6wXkI4t7nuc&t=239
If every police officer were required to have an always on camera, then their interactions with the public and their testimony in court would no longer be based on their opinion of the situation, or what they though they heard you say, but hard video evidence. Also it could generally make the police a lot more aware of how they interact with the public, which in my experience in the US, has generally been very negative.
I am no lawyer, but my current belief is to never speak to a police officer.