0.P. 323
CONFIDENTIAL # 密
5-
13.
In an effort to retain the initiative offered by BARFORD, KONG Sum-chuen, another well-known drug syndicate head, was requested to attend Police Headquarters for enquiries. KONG has been particularly active during the last two years, but was already reported to be seriously trying to sever his connections with the narcotics trade, having lost more than $35 million to successful No B. operations in the past year. KONG did appear at PHQ, although obviously greatly perturbed. He admitted knowing certain personalities of interest to the BARFORD enquiry, and offered to return a few days later with CHENG Yung, at that time still at large; he did not do so, but fled the Colony to Taiwan on 17th November, the day before he had agreed to return to Police Headquarters. According to newspaper reports, KONG was arrested by the Taiwan Police in his Taipei hotel on 25th November, together with LAM Chun-fui, manager of the Shaukiwan drug retail syndicate. KONG is alleged to have admitted involvement in drug distribution in Hong Kong, although not as far as is known his role in the field of import and manufacture; it is not known whether LAM has admitted his part in drug trafficking,
14.
A second syndicate head known to have left the Colony is MA Sik-yu. Until about 3 years ago MA controlled the largest drug syndicate in Hong Kong; since then he has more or less ceased his narcotics activity, although still controlling se Fa and illegal gambling syndicates. MA left for Manila on 18th November for unknown reasons. He returned to the Colony on 25th November and arrangements are now in hand for MA too to be called up to Police Headquarters, simply to maintain the current pressure.
15.
At least five drug personalities of major significance have left the Colony. Exactly how many more of lesser rank have departed is not known; but there is no doubt that since the BARFORD. arrests the leading figures are greatly worried and have either gone to ground or have left Hong Kong. The longer they are out of circulation the greater the disruption to their drug syndicates.
The Current Situation
16.
Usually reliable sources close to the syndicates suggest that no large-scale imports have been arranged for the next few months, and existing stocks of drugs are therefore unlikely to be replenished in the near future. One report from Bangkok alleges that a Thai trawler sailed for Hong Kong on 19th November, but this cannot be confirmed; the normal precautions will however be taken and attempts made to locate the vessel by aerial reconnaissance.
17.
It is understood that there is no immediate shortage of opium; the switch over the last year or so of many former opium addicts to heroin has led to a declining demand for opium and enabled some stockpiling to take place, and supplies are estimated to be sufficient to last for about three months. Diven activity is relatively low, and those divans which remain operating are small and mobile, and open at irregular hours only for known and trusted customers.
CONFIDENTIAL #
}.
/18. The