IN CONFIDENCE

Prices (All expressed in Hong Kong dollars)

17. The following were the prices of drugs on the illicit wholesale and retail markets at the close

of 1976:

(a) Wholesale

Opium (raw)

Opium (prepared)..... Morphine

No. 3 Heroin

(b) Retail at street level

Opium (prepared)...

No. 3 Heroin

:

Tael

Ounce

Pound

Kilo-

gramme

$240

$ 2,880

$ 6,350

$350

$ 4,200 $ 9,260

$830

$ 8,600

$ 18,860

$1,000

$16,000

$ 35,270

$3,756

$ 9,960

$60,096

$ 21,960

$132,490

('Tael' is a local term equivalent to 37.7 grammes)

Preventive Service

18. During 1976, 836 vessels were searched by the Preventive Service and guards placed on 551 others to deter narcotics smuggling. A total of 370,905 items of sea cargo and 26,163 postal packets were examined. 2,564 aircraft were searched and 625,275 items of air cargo examined.

CASE SUMMARIES

Manufacture

19. On 21st August, 1976, a party of Police officers from Western Police Station conducted a raid at a residential flat in Sands St., Hong Kong. A search of the premises revealed a large quantity of chemicals and equipment associated with the manufacture of heroin stored in one of the bedrooms. Forensic evidence was found to suggest that heroin manufacture had taken place in that room.

20. Two Chinese males were arrested in connection with the case. CHAN Kam-lau (7115/6855/ 2692) and CHENG Chung-kan (6774/1813/0530) were charged with Manufacturing A Dangerous Drug and Possession of Dangerous Drugs For The Purpose Of Unlawful Trafficking, the latter charge arising from the seizure of a small quantity of heroin in a connected raid. CHENG has been committed to stand trial in the Supreme Court. CHAN was discharged at committal but pleaded guilty at Victoria District Court to the Trafficking charge and was sentenced to 3 years' imprisonment.

(W/CR/1185–6/76)

21. On 4th November, 1976, following a period of surveillance, Narcotics Bureau officers con- ducted a raid on a heroin factory in Tung Tau Tsuen Road, Kowloon Walled City. A large quantity of chemicals and equipment were discovered in the flat, together with 2 blocks of ‘999' brand morphine and a quantity of heroin, packed ready for distribution. Indications were present to suggest that heroin had been manufactured in the premises on previous occasions and that preparations were complete for the manufacture of a further batch.

22. The drugs seized comprised 2.529 kilogrammes of a mixture containing 2.3472 kilogrammes of a salt of morphine and 0.7541 kilogramme of a mixture containing 0.189 kilogramme of salts of esters of morphine. 5.36 litres of acetic anhydride, a chemical essential in the conversion of morphine to heroin, were also discovered.

23. Chinese males LAM Wai (2651/1218) and LAM Wai-wah (2651/0251/5478), and Chinese female WONG Wai-yeung (7806/1902/2799) were arrested in connection with the case. They have all been charged with Manufacturing A Dangerous Drug, Doing An Act Preparatory To The Manufacture Of A Dangerous Drug (alternative charge), Possession Of Dangerous Drugs For The Purpose Of

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IN CONFIDENCE

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