AnnualReport-1939 — Page 222

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of supplies of heroin, temporary disruption of supplies of the auxiliary ingredients, caffeine, quinine, sugar of milk, etc. following the outbreak of war in Europe and, strangely enough, to the housing shortage in the Colony, which has made it more difficult for the manufacturers of heroin pills to secure adequate accommodation for their factories within urban limits. While acknowledging these aids, however, it may fairly be claimed that the most potent causes have been the successful detection of numerous factories, the relentless raiding of divans and the exemplary sentences imposed by the Courts on all convicted of the manufacture of heroin pills or of smuggling of this drug.

23. Altogether 3,741,914 heroin pills and 115 9/10 ounces of heroin were seized as compared with 2,713,181 pills and 31 ounces in 1938. Most of these seizures were made in heroin pill factories and the figures are the more meritorious in that it is known that the amount of heroin entering the Colony was less than in previous years.

An unwilling tribute to the success of the department's detective work is also paid by the immeasurably greater precautions now being taken by smugglers in covering their tracks. Unfortunately, it is inexpedient to give details in a public report, but it may be safely said that though these precautions have undoubtedly increased the difficulties of detection, they have also increased the expenses and reduced the profits of the heroin trade.

24. Approximately 36 factories have been successfully raided during the year. More than a third of these have been large-scale establishments employing between 5-10 workers and provided with ample apparatus. A feature of the year's successes has been that many of these factories were located and raided almost immediately after they had first commenced work and before they had had time to show a profit. It is undoubtedly due to these successes, as well as to the housing shortage already referred to, that factories have been established in outlying suburbs and even in remote country districts. Perhaps the most interesting and satisfactory seizure of the year was made at a lonely beach on Lantau Island, where a large-scale factory had just been established in a mat-shed. No less than 48 ounces of heroin were seized together with 56,200 pills and 1,429 lbs. of auxiliary ingredients. Five persons were arrested and all were convicted and sentenced to five years' hard labour. The raid was carried out on the night of the day on which the factory commenced work.

25. As in the case of opium, the system of intensive and repeated raiding of divans was carried out with marked success. The number raided by this department alone was 649, and approximately 5,000 pipes and 11,000 lamps were seized and destroyed. As the year progressed, there was a marked decline in the prosperity of the divans, and there was ample evidence that the depression in the heroin traffic was making itself felt. Analysis of pills seized revealed a considerable diminution of the heroin content, and it was noticeable that most of the divans were catering more and more for opium smokers as an offset to the loss of heroin trade.

VII. LEGISLATION

26. Early in the year, a new ordinance called the Hydrocarbon Oils Ordinance was passed, and the Motor Spirit Ordinance was repealed.

The new ordinance provided for the taxation of all light oils, as had been in the case of the Motor Spirit Ordinance, but it went a stage further by taxing heavy oils imported into the Colony for use as fuel in any heavy oil road vehicles. The change was rendered necessary by the fact that many buses had been converted from petrol into heavy oil vehicles, and Government was losing revenue formerly drawn from this source.

VIII. CERTIFICATES OF ORIGIN

27. There has been a considerable increase in the work done by this department in connexion with the issue of certificates of origin. The total number of certificates issued was 26,586, an increase of 9,120 over the 1938 total of 17,466.