FO371-24687 — Page 15

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6.

one period in the negotiations the British Company's

Chinese connexions reported that Liang Hung-chih

(head of the Reformed Government) had stated that.

the ransom would "run into millions, which the

Chungking Government would have to pay".

9.

Eventually, Mr. u was released on the

1st March, and Mr. Smith, accompanied by Mr. C.S.

Shen (another director of the Yee Tsoong Tobacco

Distributors Limited) visited him at his own house.

Mr. Wu, whom Mr. Smith described as looking gloomy,

gave them most of the information contained above,

adding, however, that he had discovered during his

captivity that he had been closely watched by

Japanese agents in Hongkong ever since July of last

year. He stated that he had seen the order for his

arrest, on a charge of using the bank's monies to

finance guerillas in the interior, and that this

order had been signed by Mr. Itagaki. He said that

his release had been effected on the following terms:

Payment of two hundred thousand dollars;

10.

Complete severance of his relations with

the Chungking Government;

To confine himself strictly to the affairs

of his bank;

To remain on parole in Shanghai in complete

liberty, provided his wife and family were

kept as hostages in Hongkew.

It will be observed that according to this

/account

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