0003160 G.F. 316
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which would facilitate and make more effective any naval operations as in the previous paragraph, and in any case would alert the Police and the Preventive Service to concentrate the maximum effort in Hong Kong at the most appropriate time. It was stated that to establish such a procedure would require a notice to masters issued by the appropriate national authorities. This is a good idea which deserves to be followed up. In general, a Thai trawler operating outside the Gulf of Thailand will be in breach of its licence conditions and may be considered to be engaged in an unlawful pursuit.
Drug Importers in Hong Kong
19.
The position in relation to the Hong Kong drug importing syndicates was discussed in some detail together with the various means which can be employed to counter them. The Americans laid some emphasis on how effective they had found the harrassment of drug importers legitimate businesses in the United States by way of very strict and detailed tax inspection procedures. The difficulties of adopting this method of attack in Hong Kong were explained due mainly to the fact that the Colony does not have a comprehensive income tax aystem. However, there may be merit in taking a fresh look at this aspect locally to see whether worth- while means cannot be found to get at our known 'Mr. Bigs' in this way.
Heroin Refining in Hong Kong
20.
There are estimated to be some 30 to 40 heroin refineries in Hong Kong. The great difficulties attached to detecting them wore discussed at length and various means suggested to assist in the task. None offered any real hope of an early breakthrough.
21.
Acetic anhydride is an essential chemical used in the refining process from morphine base to heroin. The possibility of adulterating it in such a way as to render it incapable of being used for heroin refining is being examined. It was suggested, however, that as acetic anhydride has a very pungent smell, there may be value in training dogs to detect it. Mr. Train said that he would follow this up in London, though there is no reason why it cannot be pursued locally where a dog has already been trained successfully to detect opium.
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