IN CONFIDENCE
· ROYAL
HONG
KONG
POLICE
ROYAL HONG KONG POLICE
NARCOTICS BUREAU BULLETIN
2ND HALF 1974
Introduction
The latter half of 1974 saw an acute shortage of drugs in Hong Kong and an accompanying dramatic rise in prices on the illicit market. This was brought about by a curtailment of trawler traffic supplying drugs to the Colony, coupled with increasing success on the part of local counter- narcotics operations. Some morphine has been reaching Hong Kong, a little by air, but according to intelligence reports the bulk is being brought in by seamen couriers. These supplies have had very little effect on the overall price situation.
2. The arrest of several major syndicate personalities in November 1974 had a marked effect on known top-echelon traffickers. A number have gone into hiding, others have left Hong Kong, and those few who remain in circulation within the Colony have abruptly ceased trading in narcotics. This operation is reported in more detail at paragraphs 40-42.
3. A second factory producing Acetic Anhydride was discovered in August (see paragraph 15); the first, found in the New Territories in June, was reported in the previous Bulletin. As far as is known these are the only instances of the illicit production of acetic anhydride anywhere in the world. The law relating to possession, importation and manufacture of acetic anhydride is currently under review and greatly increased penalties for offences are expected to be introduced in the near future.
4.
The discovery of a number of small caches of opium on outlying islands or underwater during the last two months of 1974 would seem to indicate a change in storage patterns. Importers, unwilling to risk the loss of their entire consignments as happened several times recently, appear to be storing only a few sacks at a time in a number of different locations. One recent report suggests that syndicates are now afraid to store opium on land at present because of the success of the Police drug detecting dogs.
Manufacture
During the period under review two heroin manufacturing centres were discovered by Narcotics Bureau (paragraphs 18-19 refer), bringing to seven the number of refineries discovered during 1974.
In neither of these refineries was manufacture in progress at the time of the raid, and it seems likely that their operation had been halted because of the difficulty in obtaining morphine supplies.
5.
1
IN
CONFIDENCE