TNAG-0691-FCO40-840-Review-of-narcotics-problem-in-Hong-Kong-1977 — Page 89

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82. On 24th November 1976 information was passed to the Narcotics Bureau by the Royal Canadian Mounted Police to the effect that three Czech Canadian males were travelling to Hong Kong with the intention of buying heroin to the value of approximately HK$140,000. The three arrived separately between 24th and 26th November and were identified by the Narcotics Bureau as being Karen KULAS, Vladimir KATRENIAK and Jan CERKL. KATRENIAK departed Hong Kong for Europe on 29th November and was searched at Frankfurt with nil result. His extradition to the U.S.A. will be sought.

83. KULAS and CERKL were detained by the Narcotics Bureau on 30th November as they werd about to board a flight to Honolulu. Whilst they were being questioned, a message was receivee that Canadian female Catherine Ada HAYES had been arrested in Honolulu on her arrival from Hong Kong in possession of approximately 1 kilogramme of No. 4 Heroin. She claimed that she had been recruited as a narcotics courier in Canada by KATRENIAK and had been given the heroin in her hotel room in Hong Kong by KATRENIAK, KULAS and CERKL with instructions to deliver it to Seattle.

84. KULAS and CERKL were released by the Narcotics Bureau the following morning and placed aboard a flight for Tokyo and Los Angeles. At the time neither was aware of the arrest of the courier in Honolulu. KULAS was arrested in Honolulu and CERKL in Los Angeles. Both will be taken to Seattle to face narcotics charges.

85. KATRENIAK, KYLAS and CERKL were connected to a former major Czech Canadian organiza- tion involved in narcotics trafficking. Sixteen members of this group are currently on trial in Canada. The arrest of a number of the couriers engaged by the group

resulted from their identifica- tion in Hong Kong by the Narcotics Bureau.

(NB/CON/80/432/76)

86. In August, 1976, a joint Narcotics Bureau/United States Drug Enforcement Administration. operation was initiated against a major Narcotics Bureau target, Chinese male YEUNG Yan-lok (2799/0088/3157). YEUNG was arrested on 4th December in connection with the delivery of approximately 680 grammes of No. 4 heroin by one of his couriers to a U.S.D.E.A. agent, posing as a narcotics buyer, in San Francisco. A second Chinese male, identified as being present during negotiations in Hong Kong between YEUNG and the U.S.D.E.A. agent was also arrested.

87. YEUNG and the second man, Lo Wah-hung (5012/5478/3163), have initially been charged with Trafficking In A Dangerous Drug. A Nolle Prosequi has been entered in respect of Lo. YEUNG is awaiting trial.

(Wch/CR/3643/76)

88. In May, 1976, a joint Narcotics Bureau/Thai/Royal Canadian Mounted Police/Australian Police operation was mounted in Bangkok and resulted in the arrest of four persons involved in trafficking heroin from Thailand to Australia. Amongst those arrested were Chinese males PAK Yok-lin (4101/3768/7792), the Hong Kong based organiser, and CHAN Man-ching (7115/2404/2972). CHAN was also wanted by the Royal Canadian Mounted Police for drug trafficking, but both PAK and CHAN were subsequently released by the Thai authorities.

89. On his release, CHAN returned to Hong Kong and was arrested on arrival for possession of a false passport, for which he received 2 months' imprisonment. Meanwhile, the Canadian Government instituted extradition proceedings against him but they failed on the grounds of in- sufficient evidence. Subsequently, a previous associate of CHAN's, serving a four year prison sentence for exporting heroin to Canada, offered to give evidence against him. CHAN was re- arrested on his release from prison on 7th December, and has been charged with Conspiracy To Traffic In Dangerous Drugs and Doing An Act Preparatory To Trafficking In Dangerous Drugs. He is awaiting trial.

(S/CR/111/76)

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