TNAG-1552-FCO40-2116-Hong-Kong-illegal-betting-syndicate-1986 — Page 88

GRS 215

CONFIDENTIAL

FM PORT LOUIS

TO IMMEDIATE FCO

TELNO 048

CONFIDENTIAL

TO COPY Goom

OF 200743Z MARCH 86

AND TO IMMEDIATE HONG KONG

-

MY TELNO 046: ILLEGAL BETTING SYNDICATE

1. THE HONG KONG BASED ESQUEL GROUP OF COMPANIES, OF WHICH YANG IS CHAIRMAN, CONTROL FOUR TEXTILE FACTORIES IN MAURITIUS SPECIALISING IN THE MANUFACTURE OF SHIRTS, MAINLY EXPORTED TO THE

USA AND THE EC. OUTPUT IS ABOUT 6 MILLION SHIRTS ANNUALLY.

ACCORDING TO THE ESQUEL BROCHURE, THE GROUP IS THE LARGEST EMPLOYER LOCALLY, AND ACCOUNTS FOR THE LARGEST LOCAL OUTPUT OF APPAREL. THERE IS A SALES OFFICE IN LONDON. ESQUEL IS CLOSELY

ASSOCIATED WITH THE AF ASIA GROUP OF COMPANIES, ALSO HONG KONG BASED, WHICH CONTROLS SIX FACTORIES IN MAURITIUS.

2. WE PROBABLY CANNOT FIND OUT MORE ABOUT YANG'S OPERATIONS

WITHOUT AROUSING SUSPICION, BUT CAN SAY WITH LITTLE DOUBT THAT, GIVEN THE NATURE OF THINGS IN MAURITIUS, HE WOULD BE A PERSONAL FRIEND OF THE PRIME MINISTER, AND EVEN MORE SO OF THE DEPUTY PRIME MINISTER, SIR GAETAN DUVAL.

3. ONE OF THE BOARD OF DIRECTORS IS STEPHEN CHU, WHO MAY WELL BE THE SAME PERSON AS STEPHEN CHEW, CHAIRMAN OF THE GENERAL CORPORATION OF AUSTRALIA, WHO HAVE NEGOTIATED WITH THE MAURITIAN AUTHORITIES FOR THE CONSTRUCTION OF A DE LUXE HOTEL IN PORT LOUIS TO BE CALLED ''DYNASTY''. A PROMINENT FEATURE OF THIS HOTEL WILL BE ITS CASINO. WE OURSELVES HAVE SEEN NO EVIDENCE OF THE

INVOLVEMENT OF GEORGE FREEMAN.

CROWSON

LIMITED

HKK 295 /1 RECEIVED IN REGISTRY

2 1MAR 1986

HKD

EAD

DESK OFFICER

CONSULAR D

PEGKTAY

INDEX

PA

Action Taken

COPIES TO:

MR WOOD, LEGAL ADVISERS

DR WILSON

MR JOHNSON

CONFIDENTIAL

A