has been recognised by the Government. In December 1976, an increase of 20 high-grade staff was approved, mainly for the formation of a company fraud section.
A major problem encountered in investigations is the frequent delay in reporting by business firms and banks which, understandably, are keen to secure the return of misappropriated funds, and consequently negotiate with. the culprit in the first instance. Only when this effort has failed, and often after the offender has left Hong Kong, is a complaint laid. The effect of such delays is self-evident and illustrated by four current cases in which extraditions are being sought and which involve property exceeding $3 million in value.
The office is also responsible for the investigation of offences in relation to forged and counterfeit currency, the number and extent of which varies annually. Until recent years, the problem was manifest mainly in forged United States dollars produced in other countries and imported by seamen. During 1976, however, forged local currency in the form of one and two dollar coins, twenty cent coins and hundred dollar notes was found in circulation.
The precise value of property involved in investigations is difficult to quantify precisely since, in many cases, the full amount is unknown or difficult to assess. However, in broad terms, the amount reported missing during 1976 was more than $54 million, of which $25 million was con- firmed as being stolen.
Narcotics Bureau
The abuse of illicit drugs in Hong Kong, mainly heroin and opium, continues to rank as a serious social problem. Al- though there are no comprehensive statistics, it is estimated that there are some 60,000 addicts. As all illicit opiates are imported into Hong Kong, then processed and distributed within the territory, a large number of persons are involved in this trade where they make quick profits at the expense of the addicts.
Of the estimated 60,000 addicts, some 50,000 are believed to be addicted to heroin and the remainder to opium. Due to the risk factor in the smoking of opium, there has been a continuing swing to the smoking of heroin which is not so easily detectable. The profile of a typical drug addict in Hong Kong is that he is an adult male of over 21 years, in the lower income group, and of limited primary education; he is employed in unskilled or semi-skilled labour and resides in overcrowded and generally squalid accommoda- tion. The addict is usually single; if he is married, he is often separated from his family.
Thus, the prevention and detection of drug-related offences is given a high priority. The Narcotics Bureau leads the attack and co-ordinates overall Force action while the Preventive Service, a branch of the Commerce and Industry Department, mainly fulfils its searching role at the International Airport and in Victoria Harbour.
One of the main objectives is the pursuit of cases which require specialised and protracted investigation, particularly those relating to individuals and groups involved in the import, manufacture, large-scale distribution and export of drugs. Another vital aspect is the collection of intelligence, both from within Hong Kong and from overseas.
During the year considerable quantities of opium, mor- phine and heroin were seized. When placed against the estimated annual consumption of opiate drugs in Hong
Kong, these seizures can be interpreted as representing the interdiction of more than 40 per cent of the illegal importa- tion of opium, and some 20 per cent of the heroin destined for Hong Kong's addicts.
Other major successes during 1976 illustrating the work- load of the bureau (and the rest of the Force) and the effect on the illicit trade were:
the discovery of eight heroin refineries the neutralisation of 13 drug stores
the interception and seizure of five major narcotic consignments
the arrest of 102 high-level operatives
Apart from large-scale shipment by fishing vessels, there is an increasing practice of recruiting seamen and others to carry drugs into Hong Kong. Typical modi operandi are: the use of seamen working aboard ocean-going cargo vessels plying Southeast Asian ports the employment of airline passengers to carry small consignments, often of one or two kilos, to con- tacts in Hong Kong
Frequent operations mounted by the Force resulted in the arrest of 17 people engaged in the manufacture of drugs, and the seizure of drugs and manufacturing equipment from three farms and five residential flats being used as heroin refineries. Results of other extensive investigations included the elimination of two major organisations, one of which controlled the large-scale distribution of heroin within the area of West Kowloon.
In addition to the 102 persons arrested for engaging in
$55000
$50000
$45000
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$35000
$30000
$25000
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JFMA M
A
1975
Morphine D
Heroin AAX
J J A S OND JFMAM J J ASO
Л A
1976
Я
******* Opium (prepared) 82 [#]
*** Opium (raw) M (E)
F2+1=
Lotie
Highly successful Narcotics Bureau action sent illicit wholesale drug prices soaring during the year. This graph shows, per kilo, the spiralling rise.
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