Intensive police action continued against certain dubious establishments purporting to be music parlours, beauty parlours, steam bath centres and so on. The drive of the previc year continued well into 1977 and by the end of the ye the number of suspect establishments still operat- ing had declined substantially.

The 1,766 prosecutions made during 1977 for offences under the Societies Ordinance further emphasised the effort made against organised crime and illegal societies.

The fight against triads is still gaining momentum and much remains to be done. Any relaxing of offensive action by the forces of law and order would soon be exploited. However, in all, a fair measure of progress was made during the year, and the influence of the so-called triads was contained on a wide front.

Criminal Intelligence Bureau

The year proved a significant one in the field of criminal intelligence. After a number of years' experimentation and pilot schemes in districts and divisions, a central Force Criminal Intelligence System came into being in May when approval was received for the creation of the Bureau.

The Bureau is tasked with the responsibility to collect, collate, assess and disseminate criminal knowledge and intelligence throughout the Force, and at the same time acting as the co-ordinating agent for all other intelligence formations. The field of criminal intelligence is relatively new and in the short period since its inception this forma- tion and its district counterparts have contributed signifi- cantly to the Force's fight against crime.

By the very nature of this unit's work it shuns publicity, but it may be of interest to know that it has entailed a shift of emphasis in the traditional approach to criminal investigation. Instead of investigating particular crimes, they newly formed CIB keeps a close watch on individuals who are suspected of being actively involved in crime. In so doing, the Bureau gathers valuable information which is passed on to those units still tasked with the actual investigation of current crime.

Commercial Crimes Bureau

Hong Kong's position in the Far East as an ever-expanding trading and financial centre must inevitably attract indi- viduals who would attempt to take advantage of the situa- tion. To match the opportunities for criminal gain, the Bureau has expanded its staff with selected and skilled personnel. Investigative tasks are allocated to three sections, each with a distinct and important role to play.

Counterfeiting and forgery.

Company fraud.

• General (major) fraud and special enquiries. In the counterfeiting sphere, some major successes were registered during the year. Groups dealt with included a Macau group distributing counterfeit US currency in Hong Kong, a Hong Kong group distributing counterfeit US currency in Thailand, and a syndicate producing travel documents and counterfeit Malaysian and Bruneian

currency.

Large scale investigations continued into the activities of a number of companies that took advantage of the condi- tions that were prevalent during the stock market boom of 1972-73. These are inevitably prolonged and difficult in-

vestigations, and in a few cases the main suspects are no longer within Hong Kong's jurisdiction.

The criminal use of Letters of Credit presented in pay- ment for the export of bogus, or undervalued goods, appeared to have been the most lucrative and most popular method used by white-collar criminals to make a quick killing.

Large-scale frauds which are reported in Hong Kong may perhaps represent only the tip of the iceberg. No one really knows. It could be that some companies have been reluctant to report losses because of a fear of unfavourable publicity which may affect goodwill.

Commercial crime generally is becoming increasingly specialised, and during the year a case was made for a strengthened bureau. Police investigators are now being trained in company law and audit problems at the Hong Kong University and at the Hong Kong Polytechnic. In fact, the Polytechnic has designed a special course to meet Force needs in this field. During the year, one senior officer also attended an FBI course on computer frauds.

The Bureau's staff are, therefore, becoming more ex- perienced and better equipped to meet the challenge of this type of crime. With improved resources, greater pro- fessionalism and more manpower, this challege is being met more than adequately, judging from the Bureau's successes to date.

Narcotics Bureau

The abuse of illicit drugs in Hong Kong - mainly heroin and opium - continues to rank as a serious social problem; the addict population is believed to be in the region of some 60,000. As Hong Kong is not an opium producing area, all its illicit opiates have to be imported, then pro- cessed and distributed. Consequently, a large number of persons are involved in this trade where they hope to make quick profits at the expense of the addict.

Of the estimated 60,000 addicts, more than 90 per cent are believed to be addicted to heroin. Due to the risk factor inherent in the smoking of opium because of its characteristic smell, and the paraphernalia necessary, there has been a continuing swing to the abuse of heroin. The typical Hong Kong drug addict is an adult male, who became addicted before the age of 25, usually from curiosity combined with peer group influence. He would most likely be single or, if married, separated from his family, and educated to primary school standard only. Because of his limited education he would be either un- employed or might have found daily paid work in an unskilled occupation.

Thus, the prevention and detection of drug-related offences is given a high priority by the Force, with the Narcotics Bureau leading the attack and co-ordinating overall action. One of its main tasks is the pursuit of cases which require specialised and protracted investigation, particularly those relating to individuals and groups in- volved in the import, manufacture, large-scale distribution and export of drugs. Another vital aspect is the collection and collation of intelligence, both from within Hong Kong and from overseas.

During 1977 considerable quantities of opium, morphine and heroin were seized, although amounts were less than in the previous year. This came about, in the main, through

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