2
The British Crown Colony plays a major role in the trafficking and refining of narcotics which originate in the "Golden Triangle":
(1) It serves as a major target for the production area;
(2) The criminal syndicates behind the Southeast Asian drug traffic are based in Hong Kong;
(3) It serves as the refining center for "Golden Triangle" opium and morphine base: and
(4) It is a major transshipment point for heroin coming into the U.S. and for transshipment to our 7th Army in Germany via The Netherlands.
Addiction in Hong Kong
Opium trading has taken place in Hong Kong since it was acquired by the British in 1842. The British East India Company created a market for Indian opium in Hong Kong.
In 1945 the Japanese then occupying Hong Kong turned the opium franchise over to Chinese syndicates. These syndicates remained in the drug trade after opium smoking was outlawed in 1946, and are today the major financiers of the Southeast Asian drug traffic.
As it has for years, Hong Kong still has the highest addict per capita of any place in the world.
British officials estimate that out of a total population of 4 million the current addict population is 80.000: 20.000 opium addicts and 60,0003 heroin addicts. The American mission estimate is 100,000: 25,000 opium addiets and 75.000 #3 heroin addicts. The Cabinet Com- mittee on Narcotics estimates it to be closer to 150,000: 30,000 opium addicts and 120.000 heroin addicts. Accurate figures should be avail- able in three years from a computerized central police register which has just been established.
To supply this addict population. the American mission estimates that 17 tons of prepared opium (1.7 kg/yr/addiet) and 4.8 tons of uncut 3 heroin (58.5 gm/yr/addict) is required annually. The World Opium Survey estimates the need to be 48 tons of prepared opium and 7 tons of pure heroin. These consumption figures readily indicate why Hong Kong is a major target itself for Southeast Asian drug traffickers.
The consumption pattern has changed radically in recent years. trending toward "harder" drugs. Fifteen years ago. 90 percent of the opiates consumed was opium and 10 percent heroin. Now it is re- versed: 90 percent heroin and 10 percent opium.
Addiction has remained stable or slightly increased since narcotic consumption was made illegal in Hong Kong because: (1) the 1949 Communist takeover of the Mainland forced thousands of opium smokers to Hong Kong: (2) opiates unlike alcohol enjoyed social approval for many years; (3) the Government of Hong Kong failed to establish effective control and rehabilitation measures; and (4) the accelerated urbanization and industrialization of Hong Kong has created social disorganization and a breakdown in the Chinese family
structure.
Prices
The street price for heroin has markedly decreased in Hong Kong, indicating that amounts considerably in excess of the local demand