0003170

G.F. 317

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19

At the end of July or the beginning of August 1961, Mr. X

telephoned me and asked me to go to the Ying King Restaurant for tea

at about 1000 hours the next day. Mr. X told me that he planned

to expand the Z Business and asked me to solicit business for him.

Afterwards I asked

and YAM Sai Ping to go to the

Ying King Restaurant.

On the following day I arrived at the Ying

King Restaurant with YAM Sai Ping. Mr. X an

arrived

there together. 4 of us sat at a large round table on the right

hand side of the 1st floor of the restaurant. Some time later Mr.

CHU (identified as accused) arrived. I was sitting besidel

HON touched me with his elbow by which he meant that this

"CHU" was "CHU Leung" whom he had mentioned to me earlier. HON did

not know then that I had met CHU on previous occasions.

was the last to arrive

identified in person).

Sai Ping and

YAH Sai Ping and

As far as I know at that time YAM

did not know Mr. CHU. On the arrival of

Mr. CHU, Mr. X said that all were good friends and would have tea

together. When

arrived, Mr. X introduced him to Mr.

CHU. The table was separated into 2 groups. Mr. X was engaged

in conversation with Mr. CHU. I talked with YAM Sai Ping about

the Z Business. About half an hour later I left together with

YAM Sai Ping and

I did not know what had transpired

between Mr. X and Mr. CHU. This party sat at one table not two.

Nothing of an intelligence nature was discussed at this meeting.

This was the last time I saw CHU Leung before I was arrested.

After

arrival in Hong Kong I asked him to

work for me on K.M.T. field intelligence work and he did so. On two

occasions

ave me verbal reports, one on 20th June,

1961 and the second one at the beginning of October, which, according

to

came from CHU Leung. The first was concerned with

the transfer of a high ranking officer to Special Branch from

Singapore and I was told that this officer, a Britisher, was anti-

communist. He did not know his name. The second report was

concerned with the case of John TSANG which was by and large similar

to those reported in the newspapers.

There were two other reports which

said were

from the Hong Kong Police Force. One was concerned with a person

KWAN Yuen Leung who was being investigated by the Police. The other

was concerned with SO Pui who was passing forged U.S. currency both

in Hong Kong and Taiwan.

/20.....

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