Morgan, Was being held yesterday under a naval guard at the former Floating Restaurant, Peking Road Jetty, following his arrest on the afternoon of Christmas Day by Japanese military police. He is ae cused by them of the attempted theft of a cargo of wood oil from Pootung, and had been kept in custody in the Floating Restaurant since Boxing Day, the "North-China Daily News" was informed yesterday. Following representations by the British Consular authorities, and a visit to the Floating Restaurant by a party of S.M.P. detectives, including a Japanese officer, Mr. Morgan was handed Over to the S. M. Police at 7 pan yesterday, and will appear in H.M. Police Court this morning.
'A Japanese report last night stated that Mr. Morgan was detained by ihe Japanese Military Water Police, together with two alleged accomplices, one Japanese and a Chinese, yesterday. The three men were later handed over to the civil authorities, "Morgan being taken into custody by the S.M. Police, While the Japanese military authorities, the report stated, strongly denied reports that the three men were implicated in an espionage scheme, they refused to dis the alleged crimes for which they were being held, pending the Sconclusion of a full investigation.
Other Japanese sources, howeve stated that the men were being accused of having attempted to steal two barges loaded with oil belonging to one of the major Japanese trading companies in Shanghai The Japanese member of the trio is said to have secured a permit for the removal of the oil barges said to have been on the Pootung shore.
Text read from the printed page and cleaned; old type leaves the occasional error.