CONFIDENTIEL

- 2 -

CONFIDENTIAL

2.* The evidence available indicates that morphine delivered to Hong Kong on board ocean going cargo vessels was off loaded after the ship had arrived in Hong Kong harbour and was then ferried ashore in small motor boats. Raw opium on the other hand was normally transferred from Thai trawlers to junks of the Hong Kong and Macau fishing fleets in international waters.

3. In addition to these two methods a major Hong Keng narcotics broker agreed to make his own resources available to the MAs to enable them to bring further shipments of both raw opium and morphine into Hong Kong.

4. MA Sik Chun is deeply implicated in every facet of this operation and there is strong evidence to MA Woon Yin's involvement in the importation of morphine by way of the ocean going cargo vessels.

Polish Merchant Ships

5. In 1969 MA Sik Chun's elder brother, MA Sik Yu (7456/1917/1172), was introduced to a man who had in the past rendered assistance to other narcotics syndicates to import 1999 morphine blocks from Thailand using this method. It was agreed that this man would work for the MA group and would mobilise his contacts to import one shipment of between one hundred and twenty blocks of morphine once every three weeks.

6. Having agreed to help the MAs he was introduced to a number of people inside the MA organisation who, he was told, were to assist him in the venture. One such person was MA Woon Yin who was to be responsible for supplying the American dollars with which to pay the seaman courier and also with a large amount of Hong Kong currency to cover any miscellaneous expenses such as bribes to stevedores on the ship if necessary.

7. All went relatively smoothly with regular deliveries of one shipment every three weeks and with all such payments being handled either by MA Woon Yin or by his assistant.

8.

In 1972 a shipment had been landed at, the Western water front in Hong Kong when a group of men, posing as Customs officers, seized all of the morphine in the consignment and took it away. The blame for the loss was placed on the men who had brought it ashore and at that time it was believed that they had connived to steal the drugs. They were all detained for two days during which time they were interrogated and beaten up by MA Sik Chur and his followers who claimed that the morphine belonged to MA Sik Chun and that they would stop at nothing to recover them.

Thai Trawlers

9. The basic "modus operandi" used in this form of importation involved Thai trawlers bearing raw opium meeting junks of the Hong Kong and Macau fishing fleets in international waters and closing with each other upon the hoisting of pre-arranged signals. Opium would than be transferred to the fishing junks after the crews of the respective vessels had further assured each other of their identities.

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