On 4 August 1975, five members of the Japanese Red Army (JRA), a communist militant organisation, stormed the AIA (American Insurance Associates) Building on Jalan Ampang in Kuala Lumpur, Malaysia. The building housed the United States and Swedish embassies. The attackers took approximately 53 embassy employees hostage, gathering them on Level 9 of the building. Hostages included United States Consul Robert C. Stebbins, Swedish embassy officer Fredrik Bergenstråhle, Swedish embassy secretary Ulla Odqvist, and several members of the Lancaster family holding American and Australian citizenship.
The JRA demanded the release of several imprisoned leaders and threatened to kill all hostages if the demand was not met. Malaysian Prime Minister Tun Abdul Razak's government responded, with Inspector General of Police Mohammed Hanif Omar taking command of rescue operations. A Special Action Unit strike team led by DSP Mohd Zaman Khan prepared a rescue attempt but aborted it once negotiations began. Minister of Communications Manivasagam initially attempted to negotiate with the JRA but was unsuccessful; he was replaced by Home Affairs Minister Ghazali Shafie, who led negotiations from early in the crisis through its conclusion. Ghazali Shafie later persuaded Libyan leader Muammar Gaddafi to accept the hostage-takers and freed prisoners into Libya, and separately persuaded Sri Lankan Prime Minister Sirimavo Bandaranaike, despite her reluctance, to allow the aircraft carrying the group to refuel in Colombo.
The Japanese government eventually agreed to release five JRA members from custody. They were flown to Kuala Lumpur aboard a Japan Airlines DC-8. To guarantee safe conduct, Malaysian Deputy Transport Minister Dato' Ramli Omar and Home Ministry secretary-general Tan Sri Osman Samsuddin Cassim were handed over as substitute hostages. The hostage-takers, the newly freed prisoners, and the two Malaysian officials then departed on the DC-8, stopping in Colombo before arriving at Tripoli Airport, Libya, on 8 August 1975, where they were sheltered by the Gaddafi government. Samsuddin Cassim and Ramli Omar returned to Malaysia unharmed on 10 August 1975.
Among those freed was Kunio Bandō, previously jailed for his role in the Asama-Sansō incident. Bandō was later believed to have assisted in the 1977 hijacking of Japan Airlines Flight 472, and as of available reporting remained at large, reportedly having spent time in Russia, China, the Philippines, and Japan between 1997 and 2007. The US embassy in Kuala Lumpur was later relocated in the 1990s. In 2009, Sweden's King Carl XVI Gustaf awarded the Royal Order of the Polar Star to Tan Sri Samsudin Osman Kassim in recognition of his role during the crisis, presented by the Swedish ambassador to Malaysia.