C

6. Estimated annual volume of opium and No. 3 heroin

to Singapore/Malaysia from Bangkok by Niyom's Thai trawlers:

1 boat per month with an average of

7,

Minimum:

B. Maximum:

2 tons of opium and 1:10 ratio of

No. 3 heroin = 24 tons opium & 2.4 No. 3.

1 boat per month with an average of

3 tons of opium & 1:10 ratio of No. 3

heroin = 36 tons opium and 3.6 No. 3.

Other, less frequent trawler trips are made by

Additionally,

Niyom's vessels to Sabah, North Borneo.

every three months, small loads of No. 4 heroin and smoking

opium (80-200 kilograms) are shipped to South Vietnam.

8.

There have been instances of ton-loads of smaking

opium being shipped to Hong Kong along with normal raw

opium shipments, strongly suggesting that--despite certain

claims to the contrary--at least some of the raw opium has

been imported for refining into morphine base or heroin at

Hong Kong's numberous refineries, and not just conversion into

smoking opium for purposes of local consumption.

9. Current estimates of Hong Kong (See B #2 attachment)

opium consumption indicates that approximately 52-55 tons

of bpium/heroin is used for local consumption. This could

mean that of the remainder (roughly 40 tons), about 10 tons

is transshipped to the Philippines, and the rest is

destined for conversion into narcotics for international

markets.

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