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day.
ZOUEV differed in that his main purpose in coming to the
Colony appeared to be to enter into negotiations with Wallem
and Co. Ltd., whose offices are in the Hong Kong and Shanghai
Bank building. ZOUEV is the Vice-President of Sovfracht, the
principal Soviet ship chartering agency. He apparently obtained
his Hong Kong visa under the cover of Sudoimport, possibly
anticipating that an application to visit Wallem's in his true
capacity would be rejected.
11.
During week-ends, the Russians showed themselves to
be prodigious walkers, the area within miles of their hotel
being thoroughly 'window-shopped'.
only minor purchases of clothing.
12.
As far as is known they made
Immediately following their arrival, the Russian party
entered into discussions, with the management of Kowloon Docks, on
the subject of future repair contracts.
At this stage they
added a rider, however, that they wished to have the following
clauses included in the repair contracts:-
13.
"The Builder undertakes to ensure timely granting
of entry visas to the Purchaser's Surveyors and the
Purchaser's Representatives.
Should the Builder fail to receive entry visas for the
above persons within the shortest time from the date
of application for the said entry visas by the
Purchaser, the Purchaser has the right to cancel this
Contract without payment of any charges incurred by
the Builder prior to the cancellation date".
The Chief Manager of Kowloon Docks informed the Russians
unequivocally that he could not consider inserting the proposed
clauses in the contracts as he had no control or influence over
the issue of visas. He was then told verbally by KHANGALDIAN
that they would like to have resident in Hong Kong, for the period
of all ship's repairs (which is expected to extend to the end of
October, 1967), one Hull Surveyor, one Engine Surveyor, and one
Sudaimport representative.
The Chief Manager of Kowloon Docks
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suggested that the local office of Lloyds could handle the
survey work, but KHANGALDIAN did not seem very enthusiastic about the idea and the matter was left in abeyance.
14.
On the evening of the 3rd April, all three Russians were entertained, at the exclusive Marco Polo Restaurant, by representatives of Wallem and Co. Ltd., and on the 4th April they attended a luncheon given in the Kowloon Docks Boardroom, at which ZOUEV showed that he had a good command of English,
On the evening of the 5th including the idiom of the language.
April, the three indulged in a protracted drinking session at the Peninsula Court Lounge indicating that R.I.S. officers are no different from other Russians in that they like to indulge in an occasional fierce drinking bout. It was approaching noon next
day before KHANGALDIAN and BABYNIN appeared and they only spent
By evening, however, a matter of two hours at Kowloon Docks.
all three were able to visit Mr. A.J. Hardy, the Managing Direc- tor of Wallem and Co. Ltd., at his home, following which they went out for an evening's entertainment with this gentleman and
his wife.
15.
Late that evening all
On the afternoon of the 10th April, ZOUEV was seen to visit the s.s. KHABAROVSK, & Russian cruise ship which had arrived in Hong Kong on the 8th April, 1967. three men were taken to the Show Boat Hotel, by two representatives
The precise of Wallem and Co. Ltd., where they passed the night. reason for their visit to this particular hotel is not known although it is believed they were provided with a variety of
'entertainment!!!....
16.
The Russian party received a telegram on the morning of the 11th April, from SVIRIN, in Singapore, seeking their aid in getting short visit visas for Hong Kong for KASSIS and himself, for the purpose of preparing articles for the Russian press about the ship repair contracus. The Russians passed the request to the Chief Manager of Kowloon Docks who, in turn, referred it to the Director of Immigration, Hong Kong.
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This application was once again refused.
17.
On the evening of the 12th April, all three Russians
were entertained, at his home, by Mr. Leitch. The reliable
source directed against KHANGALDIAN's room, which had proved to to
unproductive, from an intelligence view point, was withdrawn on
this day.
18.
The following day, the Russians again raised once more
with the Chief Manager of Kowloon Docks the question of their
having representatives resident in Hong Kong during the entire
period required. for repairs to their ships. They hinted that
unless proper supervision could be arranged they would have to
look elsewhere, e.g., to Japan, for suitable facilities.
19.
On the 14th April, applications by KHANGALDIAN and
BABYNIN for extensions of stay until the 10th May, 1967, were
granted by the Director of Immigration. That evening all three
Russians were escorted, by two representatives of Kowloon Docks,
to the Peak district of Hong Kong where, it is understood, they
were entertained by representatives of Mollers Ltd., another
local shipping firm.
20.
Two days later, on the 16th April, ZOUEV departed for
Singapore and that evening KHANGALDIAN and BABYNIN went to Kowloon
Docks where they remained until after midnight.
21.
The next day, the Chief Manager of Kowloon Docks re-
ceived a further telegram from SVIRIN, from Tokyo, requesting
his assistance in acting as sponsor for SVIRIN and KASSIS, in
obtaining visas for their entry to Hong Kong. As before, the
telegram was passed to the Director of Immigration, Hong Kong.
On the 21st April, the Chief Manager of Kowloon Docks,
following consultations with the Director of Immigration, in-
formed KHANGALDIAN and EABYNIN that permanent representation of
Sudoimport, in Hong Kong, was not feasible and reiterated that
a guarantee regarding visas could not be an integral clause of
contracts between the two parties.
22.
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/He said
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