THE chairman of the Royal Hong Kong Police Shooting Club has had his firearms licence withdrawn and faces internal disciplinary action following an inquiry into his role in handling a weapon owned by prominent barrister Kevin Egan. Chief Inspector Peter Dawson is awaiting the outcome of his appeal to the Governor-in-Council. Last July, the Police Licensing Office ruled that Mr Dawson was not a fit and proper person to hold a private firearms licence. Despite this judgment, he has been allowed to keep his service revolver and shoots in regular competitions for his club using its private store of rifles, shotguns and pistols. Mr Dawson is also chairman of the Disciplined Services Shooting Association, which has members in the Customs and Excise Department, the Correctional Services Department and the Independent Commission Against Corruption (ICAC). He is also regional director of the International Practical Shooting Confederation. He is being investigated by the Complaints Against Police Office (CAPO), which has apparently recommended that he face a charge of bringing the force into disrepute. The licence revocation follows Mr Egan's acquittal last year on criminal charges. Before the case went to court, it was revealed that Mr Egan gave a shotgun to Mr Dawson for repair. Mr Dawson apparently sent it on to a gun dealer in Australia. Once Mr Egan, a keen sporting shooter, was absolved of any wrongdoing, the ICAC's Operations Review Committee referred material to CAPO, which commenced an investigation into Mr Dawson's role. Mr Dawson, 55, joined the force in July 1974. He yesterday refused to comment on his firearms licence until the resolution of his appeal. A private firearms licence allows the holder to own a personal weapon of choice, but it cannot be stored at their residence. The type of weapon is subject to licensing office criteria. It is understood Mr Dawson played a prominent role in engineering the Police Shooting Club's successful bid for 1.5 million round-nose bullets auctioned by the police force earlier this year - a deal which outraged the territory's tight-knit shooting community. The 7,000-strong membership paid $200,000 for the massive ammunition stock - 7.5 cents a bullet. Experts say the rounds cost local dealers about 80 to 90 cents wholesale, but retail for anywhere up to $1.50 a bullet. The .38 calibre bullets were deemed to be surplus stock because of the force's change to more powerful hollow-point, semi-jacketed ammunition. The round-nose bullets, still used by many police forces, are excellent for target shooting. However, senior police opted to sell them at government auction. Last year, the Licensing Office gave the Government Supplies Department (GSD) a list of firearm dealers, suppliers and sporting organisations considered able to legally submit a tender for the ammunition. 1 GSD Principal Supplies (Procurement) Officer Wong Chi-yui said each group was then sent an invitation. (Cont'd on Page 5, Col 1) There was no public advertisement. No consideration was given to selling the bullets to a buyer from a foreign country. The groups were Hong Kong Sporting Arms Co Ltd, Super Value Sporting Goods Co Ltd, All In Industries Hong Kong Ltd, Joe's Paradise Ltd, Combat Theatre Ltd, the Police Shooting Club and Getz Brothers and Co Hong Kong Ltd - the official supplier of firearms and ammunition to police. Only one application was received. It is understood the Police Shooting Club was the only organisation that had an exemption to store such a vast stock of ammunition. It was also exempted from storage fees. The bulk of the ammunition is being held at an armoury on Stonecutters Island. The club's vice-chairman, Senior Inspector Cleland Rogers, said he was pleased with the purchase. ''We operate under an exemption permit because we are not a dealer,'' he said, ''and because our members are police officers or [police] civilians and we are not a profit-making facility.'' Eight months ago, Mr Dawson was transferred from his operational post at the Shamshuipo District to the Management Services Wing.