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Manufacture
8.
The level of activity surrounding the manufacture of heroin fluctuates with shortages of both morphine and acetic anhydride. Security measures taken by the traffickers and manufacturers have been greatly improved with the consequence that detection and the gathering of intelligence has become more difficult than ever. The situation has now arisen where there is a growing trend to what can be called 'suitcase' refineries. These refineries are geared to facilitate small manufacturing operations of heroin on a highly mobile basis. Their equipment is designed in such a way that it can be packed up quickly and moved to another location as soon as the manufacture is complete. There are also indications that heroin is now being refined to order-the chemist making up a pre-determined quantity, and then waiting until that quantity is used up before refining a second batch. All these have created immense difficulties for law enforcement agencies in detecting heroin refineries. During the first half of 1977, no operating refineries have been discovered, although some success has been achieved with seizures of heroin manufacturing equipment.
9.
Export
During the period under review, two opium-preparing plants have been neutralised.
10. There is increasing evidence that Hong Kong now plays a diminishing role in the export of narcotics. Effective law enforcement action coupled with a dramatic rise in the price of drugs, have continued to discourage overseas traffickers from seeking supplies in Hong Kong, and it now appears that local exporters are operating out of other S.E. Asian cities where the risk of interdiction is less. Increasing use is being made of a system whereby even though the couriers may be recruited in Hong Kong, they are not supplied with drugs until they stop over in Thailand or other areas of S.E. Asia. In such circumstances, a search of suspects departing from Hong Kong would only alarm them. More is achieved by notifying the authorities in the countries of destination that a suspect is believed to be travelling in their direction; this procedure has resulted in a number of interceptions overseas,
11.
In general, it can be said that if the overseas importer is of Hong Kong origin, then he will try to locate his couriers in Hong Kong. If the overseas importer is not of Hong Kong origin, then he will obtain his imports and his couriers from other locations in S.E. Asia or even Europe.
Storage/Distribution
12. The arrest of two major syndicates (reported in Narcotics Bureau Bulletin, 2nd Half 1976), has had a far reaching effect on syndicates in general, especially when taken in conjunction with the greatly increased custodial sentences and fiscal penalties handed out by the courts. Mainly, it has been possible to proceed by way of conspiracy charges. These not only bring home the message of culpability to the
persons charged, but, being based as they are on the evidence of erstwhile accomplices, they signal a warning to others in the trade that their colleagues and henchmen may not be as trustworthy as they appear now. This spreads unease and distrust at all levels and, together with positive raiding on selected targets, has meant that prices have been maintained at a high level, stocks of drugs at all levels of distribution have been reduced and, generally, the market is in relative disarray compared with the situation some five years ago.
13.
Pressure has been maintained at street level, by continuously raiding the heroin selling points. As a result, it has become extremely difficult, if not impossible, for addicts to purchase heroin in the traditional manner i.e. from fixed on-street selling locations. Traffickers, in an attempt to avoid detection and arrest, have adopted more complex methods of operation. Rarely will drugs be sold to a new customer, and traffickers are using the tactic of mobility in preference to selling from one particular location. This in turn has caused difficulties for the addict in obtaining regular supplies, particularly when his usual supplier is arrested and the addict has to establish a new connection. This has prompted many addicts to seek treatment at the Government's methadone treatment facilities. 14. Narcotics stores have continued to hold small stocks of drugs, and at the premises raided this year, quantities have rarely exceeded a few kilogrammes.
Cannabis and its Derivatives
15.
Relatively few seizures have been made during the period under review, and of these the more significant cases have been at Hong Kong Airport. It is believed that in most cases the drug was not intended for local consumption. The incidence of abuse of cannabis in Hong Kong remains low.
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