AN alleged spy who was deported from the United States to Hong Kong will not be subject to any local investigation, according to police sources. Kao Yenmen, who was accused of trying to buy embargoed state-of-the-art American military hardware for the Chinese, has not committed any offence here and so will not attract any police attention, say officers. Kao, who also goes by the name Ko Yungwan, possesses a Hong Kong identity card but does not have any property or business interests here. He was met by his daughter at Kai Tak airport on Sunday. Local police are understood to be alarmed at the high profile given to the deportation by the Americans. They feel that as Kao was expelled simply on the grounds of overstaying a business visa and not formally convicted of any offence, the Americans were abusing his rights. ''Maybe they were sending a signal to China. They had rendered him ineffective and they used the media to announce it, yet he was never found guilty of anything more serious than overstaying his visa. As far as we are concerned, he is an innocent man,'' said one source. Kao, 54, was arrested at his home in Charlotte, North Carolina, on December 3 after a 61/2-year FBI investigation. The FBI said he had tried to buy a Navy Mark 48 Advanced Capability Torpedo, two F404-400 General Electric jet engines used in the FA-18 Hornet fighter jet, an AN-APG-68 fire control radar system used in the F-16 fighter jet and oscillators used in satellite systems. Immigration prosecutors told the court he offered more than US$2 million (HK$15.45 million) for the torpedo alone, and that his client was China. Kao first arrived in the US in 1971. His Chinese wife is a naturalised American and they have a 20-year-old daughter and a son aged 18. The couple ran a restaurant and lived in a US$135,000 home. Kao's wife, Kathy Kao Ying Mui-chen, has said she will remain in America. Kao was not charged with espionage but only with violating immigration laws. He said he would have fought his deportation if he were younger and he strongly denied the spying allegations. The FBI reportedly did not want a full hearing on the spying allegations because it would have forced them to reveal operational details.