0003170
G.F. 317
I
TOP SECRET
2
Two telegrams from the Soviet Ministry of Foreign Affairs, through the British Ambassador, Moscow, concerning visas for the same group followed almost immediately.
3.
As KHANGALDIAN had signed the two contracts obtained in 1966, there appeared, on the face of it, no valid reason for the presence of four other Sudoimport representatives to sign additional contracts. The fact that only one of the contracts tendered for in December had been signed gave the impression that the other two were being deliberately witheld
A subsequent as a bargaining point for the granting of visas. check by the Security Service showed that KHANGALDIAN had been assessed by the Japanese, and by a reliable defector, as a Russian Intelligence Officer, and that AZAROV had been identified
as a member of the G.R.U.
4.
Notwithstanding the information from the Security
Service, it was decided, in view of the potential value of further contracts, estimated to be in the region of $6 million, that the possible economic advantages to the Colony outweighed any possible disadvantages from a security point of view, and KHANGALDIAN, BABYNIN and ZOUEV were therefore issued with 20 day visas by the British Embassy, Moscow, on the 10th March, 1967. A security objection was raised to the visit of AZAROV.
The Chief Manager of Kowloon Docks received a
5.
telegram on the 17th March, 1967, from Sudoimport, informing him that KHANGALDIAN, BABYNIN and ZOUEV would come to Hong Kong
As it was when visas had been issued to AZAROV and GURYANOV.
believed that the Russians intended to exploit these visits to
establish a permanent presence in the Colony or for
intelligence purposes; and because
a)
it would be difficult to keep an eye on the two
additional men; and
b)
the arrival of so large a Soviet delegation could easily provoke comment and complaint from the Chinese,
expecially in view of current Soviet radio and press
criticisms of Chinese policy towards Hong Kong,
OP SLORET the view
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