FO371-24687 — Page 13

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reputation was not of the best and that, immediately

on his return to Shanghai, he had started attendance

at a gambling den in Gordon Road, where he was evidently

being watched, and he expressed the view that Mr. Wu had perhaps been taking unnecessary risks. Mr. Li

who fully realized the dangers visualized by Mr. Rogers,

advised the managers of the three banks to take every

precaution and especially to keep silence.

6.

The Commercial Counsellor subsequently

obtained an account of the affair from Mr. R.R. Smith,

a director of the Yee Tsoong Tobacco Distributors,

Limited, by whom he had been informed some time pre-

viously that the Director-General of the Inland

Revenue

Administration had been kidnapped, although

it was not then realized that Mr. Wu was the Chairman.

of the Ningpo Commercial and Savings Bank, or that

the kidnapping might be for purposes other than

ransom. Mr. Smith, who has been, owing to the

activities of his company, very closely in touch

with Mr. Wu, explained that the latter is an exceedingly

wealthy man, and a prime favourite and protégé of

Madame H.H. Kung, wife of the Minister of Finance,

and that when the previous Director-General resigned

on Dr. Kung's assuming office, Mr. Wu accepted the

post for reasons of "face". Mr. Smith added that

Mr. Wu had been educated in Japan.

177.

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