Liu Chin-yu was a professional engineer graduated from University of Paris, France. He was one of the classmates of Wu Kuo-chen, then Provincial Governor of Taiwan.
Liu Chin-yu’s three sons were leftist students who participated in student movements and fled from Taiwan to China because of the April 6 Incident at National Taiwan University and Normal College. Through Tsai Hsiao-chien, they sent letters to their father to inform him that the Communist military would attack Taiwan right away, and request that he should protect the Sun Moon Lake Power Plant. Once arrested, Tsai Hsiao-chien revealed all, leading to Liu Chin-yu’s arrest.
Liu was sentenced to death because of his son’s and friends’ letters. The death of Liu Chin-yu indirectly led to conflict of Wu Kuo-chen and Jen Hsien-chun, director of the financial department, with Chiang Kai-shek and Chiang Ching-kuo. Upset with agents arresting people out-of-hand, Provincial Governor Wu Kuo-chen and Jen Hsien-chun, argued with Chiang Kai-shek and his son. This led to Wu’s resignation and exile in the U.S., while Jen lost his position and was put in prison for five years.