The Age from Melbourne, Victoria, Australia • Page 7

it. THE AGE, Thursday 31 March 1983 -7 THE HUG AN HAND INSLUIBY Task force dismisses Attempt to link bank, ex-CIA men uioht ham lunch toeether la Laws, Singleton claim Drug dealer outlined FBI showed lack of co-operation, says report API Distributors Inc, which is thought to have been established by Mr Edwin Wilson, a former CIA employee who was recently convicted of arms trafficking by a US court The correspondence was signed by Mr Ted Shackley, reported to be a former CIA deputy director of operations, on behalf of API Distributors Inc, a company which involved other former CIA personnel, including Mr Thomas Clynes. Letters between Mr Hand and Mr Shaokley indicated the two companies were exploring business together and Mr Hand also suggested that the two men SYDNEY. The report did not set out to establish links between the US Central Intelligence Agency and Nugan Hand but it presents material suggesting an association between the bank and former CIA employees. The investigators focus on a network of relationships involving Mr Hand and Mr Bernie Houghton, who generated business for the bank in the Middle East.

Evidence of then association with former CIA employees is based on correspondence between Mr Hand and a company called Washington with Mr Houghton. Although the report states that Mr Houghton denied having any dealings with the CIA the investt-gators claim there is sufficient evidence to suggest aa association between Mr Houghton and former CIA employees through API Distributors Inc. The report notes that although Nugan Hand executives share a common background, including previous involvement in US defence forces andor the CIA, there is no evidence to prove that the CIA was involved with the bank. heroin "OTro paying louor prominms" -FA I noalthcaro Insurance). if you 're currently with a traditional health fund you could be paying too much.

SYDNEY. Allegations that John Singleton, John Laws, Nugan Hand executives and other public figures attended a send-off lunch for the convicted heroin smuggler Paul Hayward could not be sus-stantiated, the joint task force said, The report said there had been many public allegations of a link between members of the Mr Asia drug syndicate, Paul Hayward, William Sinclair and Warren Fellows, and Nugan Hand. One was that well-known public figures, a member of the Mr Asia syndicate, a leading Sydney magistrate and Nugan Hand executives had attended a farewell lunch at the Basement restaurant shortly before Paul Hayward left for Bangkok in October 1977. (Hayward, Mr Sinclair and Fellows were convicted in Thailand of drug trafficking but Mr Sinclair recently had his conviction over-turned on appeal.) The task force report said the two well-known entertainment, figures allegedly at the lunch were said to be John Laws and John Singleton. "Murray Farquhar, the retired Chief Stipendary Magistrate, is said to be the leading Sydney magistrate while others present are said to have included Ken Nugan, the brother of Frank; Dr Peter Solomon, former secretary of the NSW Liberal Party; Dennis Pittard, former footballer and employee of Nugan Hand, and a former policeman named Fred, believed to be Frederick Krahe, now dead.

"Ken Nugan, Laws, Singleton, Farquhar, Solomon and Pittard were interviewed and each denied that such a lunch took place. "Tlie owner of the restaurant, Bruce Viles, was also interviewed. Mr Viles said that he knew Frank Nugan as a patron of the restaurant and he knew Mr Singleton, but so far as he is aware, Mr Singleton has never visited the restaurant. "He did not know the other people named. He denied any knowledge of the alleged luncheon.

"It does appear that the allegations stem from Mr Graham Beith, a former business partner of Frank Nugan, well known to the CAC The report said several attempts had been made to locate Mr Beith but they had been unsuccessful. "On one occasion, Beith did telephone the task force office when he heard that he was being sought During that conversation Beith briefly reiterated his allegations respecting the lunch and agreed to attend the task force office about two weeks hence. "He did not attend and has not since made contact with the task force. It said officers of the Royal Commission had recently located Mr Beith. The report sadd it found no reliable information to support the claim that Nugan Hand paid for the defence of Mr Sinclair, Hayward and Fellows in Bangkok but it did find the probable basis for it.

"John Singleton said he first met Paul Hayward through the Newtown Leagues Club. Singleton freely admitted that following the arrest of Sinclair, Fellows and Hayward in Bangkok, he arranged for his solicitor, John Tesoriero, to travel to Bangkok to give legal advice to Hayward." Mr Singleton denied any way financially assisting Hayward with his defence and denied knowing either Sinclair or Fellows. ee how you can lower your premiums: if you pay the first: Your annual premium Is: move The quantity of heroin suggested by Mr Hand was five hundred pounds by weight." While Mr Lowe continued on his own drug deals, he was introduced to a Chinese visitor, who claimed to he one of the biggest suppliers of heroin in Asia. The Chinese visitor wanted Mr Lowe to boost his distribution of heroin. Mr Lowe said he could.

not do this but he suggested that he introduce him to Mr Hand. The meeting of the three people took place 10 days later in a Sydney park. According to Mr Lowe, "Mr Hand then tried to impress the supplier by recounting how he used to smuggle drugs in the bodies of dead servicemen during the Vietnam war and how he had CIA connections." The deal agreed upon was for the Chinese visitor to supply the drug in Asia and for Nugan Hand to arrange everything from that point. The CAC says that in June 1980 just before Mr Hand's disappearance Mr Lowe met Mr Hand. Mr Hand, he said, ed very concerned and on the second occasion actually turned and rushed off in a different the report says.

The report concludes: (CAC) delegates have heard from other sources that following the death of Mr F. J. Nugan, Mr Hand had $300 worth of bills. Single $135. $500 worth of bills.

Single $100. Family $240. of bills. Single $68. Family $145.

Then A I take over and pay the rest in full up to $15,000 SYDNEY. One of the most serious allegations in the report is that a well-known drug trafficker told the former narcotics bureau of an enormous drug deal involving Nugan Hand in 1976 years before Nugan Hand's activities became known. The allegations by the drug dealer, Andrew Lowe, are such that the CAC has recommended that further investigations should be made into "the activities of the former narcotics bureau, in the investigation of the Nugan Hand organisation andor its executives. "The scale of the allegations is such: as to invite cynicism, however, (CAC) delegates cannot reject the allegations outright the allegations should not be dismissed lightly by reason of the criminal background of Mr Lowe or the value of the drugs alleged to be involved." the report says. Mr Lowe, says the report, was a major figure in the stockpiling and distribution of heroin in Sydney when he was approached by Mr Michael Hand late in 1975.

Hand wanted to know the best method of importing heroin. "According to Mr Lowe during a subsequent conversation Mr Hand outlined a proposition to ship a huge amount of heroin to the United States via Australia utilising containers of machinery on board vessels. The heroin was to come from Chinese suppliers 'and'Mt Lowe wasthe for singles and $25.000 for families. HEAIIHCARIi FAI HMMKsra-Hrs staply Mm test! for brochumatuB (Mailt phone (03) 627W1 or poUcoupon to: FAI Healthcare lnuraoc. Stock Exchang Hou, 361 Colli Street.

Melbourne. 3000. SYDNEY. The CAC report strongly criticises the United States Federal Bureau of In-; vestigation for its lack of co--' operation in the Nugan inquiry. The report said there was no doubt a hie on Nugan Hand was held by the US Department of Justice within the FBI, and it has strongly recommended that the -J US Government co-operate with Australian investigations.

"Certainly, given the notority of the collapse of the Nugan Hand group, the death of its Chairman, Mr Frank Nugan, and the disappearance into hiding of its vice-president, Mr Hand, co-operation from the United States fought to be requested afresh for benefit of the Stewart Royal -i Commission." It said that in 1979 a Sydney journalist. Mr Brian Toohey, of the 'National had reques-t "ted access to the file under the Freedom of Information Act, but the Justice Department had ex- plained that of the 119 pages of material, 73 had to be withheld their entirety in the interests of national, defence, foreign tV. policy or because it involved in-. r' telhgence sources or methods. "The material actually provid-ed to Mr Toohey was so heavily censored' as to provide almost negligible information.

"A meeting was held between the delegates (of the CAC) and "representatives of the FBI in Sydney on 22 March 1982 and a 'request made for the provision of :11 information held by the 2 bureau. 'The' request was rejected. The delegates are not satisfied' with the extent of co-opera- tkm offered by the FBI The limited material made available to Mr. Toohey by the FBI sug-s gests that the bureau had an interest in the Nugan Hand organs as early as 1978." The report said other material available to the CAC indicated that the US Federal Bureau of-Customs as well as Interpol were also interested in Nugan Hand. "According to material available it appears that during 1979 the Hong Kong police were involved in an operation code-, named Ilsington, in which it had been suggested that the Nugan Hand Bank had been used as a laundering service for money and as such was connected with orga- nised crime including drugs in the US and Australia." The report said die Hong Kong police had been told by a US Treasury official that the infor- nation was possibly true.

The -KM been heard to express concern fabout the possible violent activities of Osians. This, at leavt, is consistent with Mr Lowe's statement that Mr Hand sought to avoid him in June 1980. Investigated role as weapons trader Wilson was involved In an arms deal involving Saudi Arabia valued at $200 million, in which the bank acted as a "financial in But, like much of the evidence presented in the report, the investigators were unable to validate the statement. The report examines in detail material suggesting that the bank explored the possibility of arms dealing in South Africa. Considerable doubt is cast on the activities of Mr Michael Hand, a part ner or tne Dank, who supposedly withdrew as a shareholder while he lived South Africa during and early it.

From KATE LEGGE SYDNEY. No hard and fast conclusions have been drawn about Nugan Hand's involvement in arms trafficking, but there is enough material to suggest that the bank explored the possibility of arms sales to South Africa, Rhodesia (now Zimbabwe), Thailand and Saudi Arabia. The investigators were unable to conclude whether any transactions took place but there is evidence to suggest the bank was interested; in "arms'; dealing as a commercial in-" the -report includes what appears to be memos or jottings, madefcy Mr Frank Nugan, which'' read "Military weapons Rhodesia pay- -in-; goJdrecordless riflesi (sic)mortars 6080 mlM79 gre-ade launches (sic)quad 50 'calibre' machine guns." Investigations revealed a link between the bank and Mr Edwin Wilson, an American with one conviction on an trafficking offence and awaiting trial on more serious charges related to the same activity. A former Nugan Hand representative, Mr Neil Evans, said Mr Through the evidence of former Danic personnel the rerxrt traces negotiations between Nugan Hand and an unlikely arms supplier in Sydney called Loy Arms Corporation Pty Ltd which has since disappeared from business. A search of the name revealed that no company by that name is register ed in new south waies.

The businesses owner, Mr Kevin "Joseph Loy, interviewed in March 1982, produced records of negotiations between him and Nugan ofiicial nad added that it unlikely Uft uthorities would-jever lay any charges against I Nugan Hand because "they were i too The report said that the State or Federal Governments should make an approach to the US Sen-( ate select committee investigating Nugan Hand for a "candid' ex-? change of information. Hand representatives. The only deal arranged involved the shipment of 10 second-hand pistols to oe exported to Singapore. il I I I A A A I 'aM-'ivvviii jMsk 11 l'-S-mu tittt ttlltfiillf- ACSTTER WIDTH Tilt-a-do? can be made wide enough to garage. And asit only takes up1" of space overhead, you benefit from a better clearance.

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