TNAG-0103-FCO40-139-Briefs-and-background-notes-for-Lord-Shepherd-1967 — Page 134

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and coordinates executive action in the field.

14. In September 1965 the Reform Club sent a "Report on Organised

Crine" to the Governor which, anongst other things, contained allegations

that there were drug rings operated by people in high positions which

appeared to be immune fron prosecution, and an apparent tic-up between

the drug traffic and the smuggling of gold through the colony from the

Macao froe narkot. The report alloged the position was such as to require

the appointment of a special commission of enquiry by H.M.G. or the

Governor. (Sinilar allegations had been made earlier in the year by

Mr. Frederick Joss, an unstable ox-Fleet St. journalist now deceased, in

press articles and in letters to the Secretary of State). The Hong Kong

Government's reply to the Reform Club pointed out that these statements

were unaccompanied by any supporting evidence, and that if they had such

evidence it should be made available to the police. Assiduous police

investigation of the drug traffic had not revealed any, The Police Force

was making continuous efforts to check and eradicate as far as possible

all forus of vice and the Government was satisfied that a special

commission of enquiry would be unlikely to disclose any significant

information that is not already known and, where possible, acted upon.

There is no case for the appointment of a Commission by H.M.G. to

inquire into the position and it is very unlikely that a formal enquiry

would produce any evidence of value. Those who have information are less,

15.

rather than nore, likely to give it in so public a manner. There is a

lack of knowledge of the local extent and causes of drug addiction but

this is not a field in which investigation by outside experts, unfamiliar

with local Chinese society, is likely to help very much.

16.

The situation was discussed by Mrs. White at her meetings with the

Governor and his officials during her visit to Hong Kong in January.

Mrs. White said that she appreciated the difficulties of the problen and

asked to be kept informed of developments.

Hong Kong Department,

October, 1967.

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