IN CONFIDENCE
Seizures
7. During 1985 the Police and Customs and Excise Service seized 99 kilograms of opium, 113 kilograms of heroin base and 247 kilograms of No. 3 heroin, as compared with 53 kilograms of opium, 972 kilograms of heroin base and 181 kilograms of No. 3 heroin in 1984. The substantial seizure of heroin base in 1984 was due to the successful neutralization of a single syndicate.
Retail Prices
8. The retail price of No. 3 heroin began the year at $90.46 per gram but quickly fell in price as the new opium crop from the Golden Triangle was harvested successfully. By August this price had fallen to its lowest level for many years at $55.45 per gram, although purity had also fallen from 20% in January to 18%. However, an apparent shortage of heroin base in October forced retail heroin prices to rise and purity to fall further, and by the end of 1985 one gram of No. 3 heroin cost on average $93.16 and was only 12.1% pure, the lowest average purity figure ever known in Hong Kong.
Wholesale Prices
9. The wholesale price of heroin base in January 1985 was $48,700 per kilogram and remained around $50-60,000 until October when a considerable increase to $84,500 was noted. Heroin base ended the year at $115,400 per kilogram, a 137% increase in price. No. 3 heroin at wholesale level followed a similar trend beginning the year at $15,200 and rising to $26,260 per kilogram by December.
Purity
10. The purity of No. 3 heroin dropped from 20% in January 1985 to 12.1% in December. This was the lowest purity ever recorded in Hong Kong.
Heroin Packet Size
11. The average street level packet of No. 3 heroin during 1985 varied from 0.07 of a gram to 1.83 of a gram. The price for these packets fluctuated dependant on the size and on the locality in which it was purchased. Generally, it was cheaper in the urban area, where a packet varied from $20 (US$2.5) to $60 (US$7.6). In the rural area it was more expensive ranging from $40-$100 (US$5-12.8).
12.
The price per packet indicates that an addict, depending on his consumption, which might vary from 2 to 3 packets, may spend between $45-$90 (US$5.7-11.5) in the urban area and possibly $80-$180 (US$10-23) per day in a non-urban area.
13. Heroin continued to be the most prevalent drug of abuse; injection remained the slightly more. popular method of taking heroin than smoke inhalation.
14. At street level, drinking straw segments continued to be a popular trafficking medium. Conceal- ment in the underclothing or in items which can be readily disposed of, such as cigarette packets, were a continuing trend.
Manufacture
15.
Since 1976 the incidence of manufacturing No. 3 heroin from morphine base has declined in Hong Kong, duc mainly to the introduction of legislation controlling acetylating substances. During the last six years the acetylating process to convert morphine base to heroin base has invariably been conducted. in the source countries, and the heroin base then smuggled into Hong Kong. This has three major advantages for the drug syndicates. Firstly, the tight restrictions on the importation, possession and sale of acetylating substances in Hong Kong are avoided. Secondly, heroin base can currently realize five to six times its own weight of No. 3 heroin so much smaller quantities can be imported and concealment problems are reduced. Thirdly, the conversion of heroin base to No. 3 heroin is a relatively quick and simple process using readily available chemicals such as hydrochloric acid, caffeine, strychnine hydrochloride and quinine hydrochloride. The whole process can be completed in 2-4 hours compared with 8-14 hours for a full process from morphine base to No. 3 heroin.
16. All of these advantages for the drug syndicates have made detection by enforcement agencies considerably more difficult. Nevertheless, considerable quantities of heroin base were seized in 1985 and six clandestine laboratories were detected.
IN CONFIDENCE
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