IN CONFIDENCE
Storage/Distribution
8 Anti-syndicate operations coupled with effective enforcement action by Police Districts at street level have created fluctuations in the prices of narcotics and on occasions severely disrupted street level supplies. Continued harassment has led to a dispersal of street sellers, causing them to abandon their fixed selling points and they now operate on an erratic and highly mobile basis. The addict is experiencing ever increasing problems in establishing a regular source of supply and, this, coupled with higher drug prices has done much to attract addicts towards the Government's methadone treatment programmes.
9 The size of narcotics stores has continued to decrease, apparently as a security measure adopted by traffickers seeking to minimise losses arising from enforcement action. During the review period instances have occurred of normal quality heroin being diluted with such substances as quinine and vanillin in an attempt to increase the bulk of drug to satisfy the market shortage.
Export
10 Hong Kong is now playing a greatly diminished role in the export of narcotics. Effective law enforcement action, coupled with the rising price of drugs, has continued to dissuade overseas traffickers from seeking supplies in Hong Kong. It appears that former local exporters are now operating out of other S.E. Asian cities where the risk of interdiction is reduced. In general it can be said that if the overseas importer is of Hong Kong origin, then he will try to recruit his couriers in Hong Kong; if he is not of Hong Kong origin, he will obtain his couriers from other locations in S.E. Asia or even Europe.
11 The only concrete evidence of export of narcotics during the period of review is that of am- phetamines being body-packed by couriers bound for Japan. Several cases have been interdicted at the departure hall of Hong Kong airport. However, it is only recently that enforcement agencies have been able to attack this problem effectively, because prior to 27th January, 1977, these substances were not classified under the Dangerous Drugs Ordinance.
Cannabis and its Derivatives
12 Cannabis abuse in Hong Kong continues to remain at a low level. Occasional seizures have been made, mainly at Hong Kong airport or from ocean-going vessels, usually from couriers in transit through Hong Kong.
13 Isolated seizures of very small amounts have been made from young people frequenting bar areas.
Synthetic Drugs
14 The effects of the new Bill enacted in January 1977, bringing amphetamines and methaqualone under the scope of the Dangerous Drugs Ordinance, are beginning to be felt. One amphetamine factory (mentioned under para. 7) has been neutralised, and increased penalties are being meted out by the Courts in respect of offences of this nature. Close contact has been maintained between Japan and Hong Kong to observe developments with regard to this problem.
Cases and Seizures
15 (a) Cases
During the 2nd Half of 1977 a total of 4,938 separate drug offences were detected resulting in 4,284 arrests.
Appendix I provides a breakdown of these offences.
(b) Seizures
Appendix II shows the quantities of dangerous drugs seized in the 2nd Half of 1977.
Prices (All expressed in Hong Kong Dollars)
The following were the prices on the illicit wholesale and retail markets at 31st December, 1977.
(a) Wholesale:
Tael
Opium (raw) Opium (Prepared) Morphine
$ 375
$ 525
No. 3 Heroin
IN CONFIDENCE
Ounce
$1,400
2
Pound
$ 4,500
Kilogramme
$
9,925
$ 6,320 $16,500 $22,600
$ 13,900
$ 36,370
$ 49,725
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