SCARED SMUGGLERS OF GOLD

Press, Volume XCVIII, Issue 28920, 13 June 1959, Page 10

SCARED SMUGGLERS OF GOLD

Only The Commonwealth Customs Profited [Ba NOEL BAILEY] SYDNEY, June 3. A cheque for about £5OOO was paid this week into the Customs Department revenue account. The windfall results from the chance discovery in Sydney 13 months ago of a load of “smuggled gold.” The gold will go into the reserves of the Commonwealth Bank of Australia.

Little did a Sydney Customs officer realise when he found two unclaimed leather brief cases in the overseas terminal at Kingsford Smith airport that he was setting in motion a fantastic investigation which would: Extend to at least 10 countries. Involve Scotland Yard, the Paris Surete, the Criminal Investigation Branches of Switzerland, Lebanon, Pakistan, India, Japan, Australia, and “Interpol,” the world police organisation. Result in the New South Wales Revenue Account of the Customs Department receiving a “gift” of more than £5OOO. * On April 23, 1958, a 8.0.A.C. Britannia landed at Sydney from London.

The passengers were cleared, and all luggage was taken from the Customs hall —except two brand-new leather brief cases.

Calls were put over airport loudspeakers, but no-one came forward to claim the two unlabelled cases, so the Customs officer took possession of them. In one was a bottle of Scotch whisky and a newspaper, in the other nothing. Then he lifted them up and realised they were unusually and suspiciously heavy, though apparently they were empty. Within minutes, the experienced fingers of the “searcher” had removed false bottoms in both cases. Revealed were 10 gold bars in paper-thin leather pouches. A subsequent assay, under direction of the Collector of Customs, Mr T. V. Maher, showed that each bar weighed 32.15 ounces and was of “999 fine” or almost pure gold. “Legitimate” value of the 10 bars was just on £5OOO. On the “black” market the price was estimated aj, at least £25,000, possibly more. Obviously, the Customs officer had stumbled on a “load of hot gold.” Trail Led To Beirut Mr Maher placed the ingots in the Commonwealth Bank of Australia for safe keeping and reported the facts to “Interpol,” the world police organisation, with headquarters in Paris.

It was established that the gold bars had been moulded and “branded” by Samuel Montague and Company, recognised and reputable, long-established London bullion merchants who regularly and legitimately exported gold bullion to Beirut. The 10 bars had been sent to Lausanne, Switzerland, to the Bullion Exchange and Trading Company, who in turn had .sold the-bars to clients in Beirut. Inquiries spread around the world. Investigators steadily pieced together evidence to indicate that the gold had somehow fallen into the hands of two brothers living in Lebanon. They are believed to be the leaders of

an international smuggling ring. One, with headquarters in Switzerland, directed the organisation of couriers. The other, stationed in Beirut, handled negotiations with buyers in eastern and southeastern Asia, particularly India. The most ready market for “black gold” has developed in India.

The brother in Switzerland, it was established, preferred to recruit as couriers British nationals, usually Greek Cypriots. In Lebanon, his brother generally chose Swiss nationals, either alone or in pairs. Equipped with specially designed vests or valises, they would carry anything from 20 to 40 kilograms (44 to 881 b) of gold bars each on a trip.

“Through” Tickets

Preferred

Almost invariably, it was found, suspected couriers travelled on a through ticket. Interpol explains that this was to facilitate transfer, free, from Customs interference of the “parcels.” In the case of the “Mascot gold,” it was established that two couriers had boarded the 8.0.A.C. Britannia in London, with through tickets to Sydney.

But the couriers left the plane at Karachi without their brief cases, which were carried on to Sydney. Obviously something had gone wrong with the organisation and the couriers were warned.

At Karachi they received a cable message, signed in the name of the ringleader in Switzerland, reading “Receivez bien notre ami” Harmless at first glance, it was without doubt a coded order to get rid of the gold and return home.

The couriers doubled back to Switzerland on the next plane from Karachi on April 22—24 hours before their “luggage” was found at Mascot. In August last year a courier, ostensibly en route to Tokyo, was intercepted at Colombo about to “pass on” 30 kilograms (661 b of gold bars secreted in a specially designed waistcoat. A Chinese was intercepted early last year carrying 10 thin sheets of pure gold in the linings of his gloves. Also, last year, according to infortnation gathered by Interpol, 60 kilograms were “hi-jacked” at Karachi.

What caused the upset in plans that produced the “Mascot gold” incident may never be known. But this week, the Collector of Customs, Mr Maher, is not unduly worried about the explanation. He has waited the prescribed 12 months for a claimant for the gold. None has been forthcoming. Now all he has to do is to wait for a cheque from the Commonwealth Bank of Australia.

The gold will go into the bank’s reserves.—Associated Newspapers Feature Services.