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CONFIDENTIEL

CONFIDENTIAL

17. In late 1968 both brothers called a meeting which was attended by all of Hong Kong's major narcotics traffickers. Both brothers spoke of forming a narcotics co-operative to increase business efficiency. The other traffickers were not at first inclined to accede to this idea but were eventually forced to accept on pain of being forced out of business. The co-operative scheme lasted for two months before it was successfully sabotaged by the people who had been forced to join it.

18.

In early 1969 MA Sik Chun approached the broker and invited him to attend a private meeting with MA Sik Yu. At this meeting, attended only by MA Sik Yu, MA Sik Chun and the broker it was decided that the broker would use his resources to import large quantities of raw opium and morphine into Hong Kong on behalf of the MAs, using the Thai trawler route.

19. It was agreed that the broker would import two or three shipments per year for the MAs and this arrangement was successfully executed until the broker was arrested in Hong Kong on narcotics conspiracy charges. in November 1974.

R.E. Kendall

Chef de Division

Head of Division J. NEPOTE

Secretary General

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