TNAG-0411-FCO40-457-Allegations-of-bribery-and-corruption-in-the-Hong-Kong-polic-1973 — Page 5

CONFIDENTIAL

Foreign and Commonwealth Office London SW1

Mr P Morris TREASURY

Telephone 01-

Your reference

Our reference

Date 17 December 1973

flie

(384)

MP's LETTER

(372)

385

1. Mr Royle, Parliamentary Under-Secretary of State at this Office, has received a letter from his constituent, Mr Alan Ellis.

2.

In the course of the three page letter Mr Ellis asks Mr Royle to take up the following:

(1) Is the British Government aware of the ultimate

destination and use of millions of pounds worth of gold bullion purchased on the London market, exported with Bank of England approval and transported on the national flag carrier to Hong Kong in transit, with Hong Kong Government approval, to Macau, in which Portuguese territory it officially disappears? Does the British Government have any evidence indicating that such legitimate bullion trafficking is financing illegal international narcotics trafficking, as has been suggested in a number of published works during the past decade? Will the British Government initiate an inquiry into these matters and suggestions?

3. I shall be grateful if you could provide a suitable paragraph to be included in Mr Royle's reply which covers the point raised. I attach an extra copy which you may need for the Bank.

Enc

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M A Goodfellow Hong Kong & Indian Ocean Department