THE set of a major Hollywood movie being filmed in Western was descended upon by a gang claiming to be triads and demanding protection money, a court heard yesterday. Veiled threats were made and $50,000 was demanded by the gang, who said the Los Angeles film company had not asked for ''permission'' to film parts of Dragon: The Bruce Lee Story in Ching Lin Terrace, it was claimed. Old Code Production Ltd had gone to Western to shoot parts of the blockbuster movie in May last year, the District Court was told. It had made a deal with a local firm, Salon Film Co, to supply local staff and equipment. On May 10 the production manager, Suen Ka-wai, was told that a gang of men was on the set to collect protection money. The court heard that Miss Suen spoke to one of the men on a telephone, who said: ''Come up right away otherwise your colleagues will have to leave immediately. Who has given you permission to shoot here? We don't have any knowledge about it.'' Miss Suen called the location supervisor, Chu Chi-hung, and asked him to deal with the situation, the court heard. Mr Chu was said to have met two men accused of blackmailing him. On trial is Lam Ka-fai, 25, who denies a charge of blackmail. His alleged accomplice, Hui Ching-yin, 28, failed to turn up for trial and a warrant was issued for his arrest. He is accused of being the gang leader and is charged with blackmail and claiming to be a triad member. Other alleged members of the six-strong gang have not been identified. It was claimed that Hui told Mr Chu: ''When you come to shoot a film you're to reach an agreement with me and get our permission before you are allowed to do so. Otherwise you cannot shoot the film. This area is protected by us.'' Mr Chu told the court: ''I told them we had already discussed it with people from a temple. I told them we had already paid some money in order to use the place for shooting. They said they were the ones looking after that area. ''I have been in the trade for 10 years already and I understand on many occasions when we have outdoor shootings people of this kind will come and ask for money,'' he said. ''They told me that nothing would happen to the people or the vehicles if we paid the money.'' Mr Chu said Hui told him that if director Philip Chan, who marched against triad involvement in film production, had been shooting the film they would have to pay a lot more. He then told Miss Suen what had happened and they called the police, the court heard. The trial before Deputy Judge Livesey continues today.