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CONFIDENT:EL

CONFIDENTIAL

10. In late 1968 a group of fishermen were contracted to collect forty sacks of opium at sea and bring the drugs into Hong Kong. However the plan was made known to a local opium dealer who decided to hijack the shipment. The dealer was able to forcibly remove thirty-six sacks of opium from the junk but overlooked four more that had been concealed in the boat's oil tanks. The fishermen who had been originally responsible for bringing the drugs into Hong Kong were detained by MA Sik Chun and some of his followers in a Hong Kong hotel where they were interrogated and beaten up.

11. The identity of the opium dealer was eventually revealed and his wife was detained in the same hotel where she too was interrogated and beaten up by MA Sik Chun and his men.

12.

The thirty-six sacks were finally recovered and the four sacks from the oil tanks were dropped into the sea where they were later recovered by the police.

13. In the summer of 1971 a group of fishermen entrusted to bring a consignment of forty sacks of opium into Hong Kong decided to steal the drugs and, with the assistance of friends, hijacked the shipment whilst it was still in international waters. The men were all located and eventually admitted their responsibility for the theft, they stated however that they no longer had the drugs. They were all detained and the following day were violently interrogated by MA Sik Chun and his men who demanded the return of the opium. Still unable to produce the drugs, one of the men paid $150,000 to MA Sik Chun's elder brother MA Sik Yu as compensation for the theft.

14. In mid 1969 two fishermen hijacked twenty-five sacks of opium that. they themselves were bringing into Hong Kong on the behalf of MA Sik Yu. The men offered to sell the drugs back to MA but whilst negotiations concerning the price were being held, the son of a fisherman who had originally contracted the two men to collect the drugs was picked up and detained in a private flat in Hong Kong by MA Sik Chun, who handcuffed and threatened him. MA Sik Chun at one stage offered the man money as a reward for assisting in the recovery of the drugs but later made threats against his life and against the lives of his family.

15.

The drugs were eventually recovered and the man released.

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Use of Other Resources

16.

In the early 1960s a major Hong Kong narcotics broker became acquainted with MA Sik Yu and MA Sik Chun. At that time the broker controlled a flourishing street level heroin network and occasionally bought two hundred to three hundred ounces of heroin from both MA Sik Yu and MA Sik Chun for redistribution.

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