TNAG-1709-FCO40-2384-Hong-Kong-narcotics-offences-and-drug-trafficking-1988 — Page 255

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Triads attracted international attention as newspapers in Australia, Canada, Great Britain and the United States alleged that Hong Kong triad members had set up operations in those countries (including narcotics' trafficking).

trafficking). The Hong Kong Government maintains that it has no evidence that the planned 1997 return of Hong Kong to China has led to any exodus of criminal elements.

Hong Kong, the third largest financial center in the world and the largest in Asia, is also a financial center of the drug trade. Strict bank secrecy laws and the absence of controls makes the territory a convenient place to bank, for narcotics traffickers and thousands of others. Given Hong Kong's freewheeling economic and financial character and the role that the banking system has played in creating the territory's stability

stability and prosperity, the Government will carefully examine any proposals for change. It has revised its banking laws during the last two years in order to facilitate drug-related investigations.

There is no evidence that any terrorist organization operates in Hong Kong or that there are any terrorist connections to narcotics trafficking.

A.5. Drug Abuse Problem: Prevention, Treatment and Rehabilitation Programs

The drug of choice among Hong Kong users is heroin no. 3. Both heroin prices and purity have remained depressed since dropping at the end of 1985. The price of one gram of heroin no. 3 in November 1986 was U.S.$7.14, down even from the low 1985 price of $7.89. Heroin purity dropped to 10 percent, far below the 15 percent of 1985.

Hong Kong has a small but diminishing population of opium addicts. Small quantities of opium are imported to supply these elderly addicts.

There is an upward trend in cannabis use. The Philippines has emerged as a major supplier, along with Thailand. Hashish comes in small quantities from Nepal and China.

There is no evidence of widespread cocaine abuse, although it appears that members of the expatriate community and wealthy Chinese with U.S. connections may use the drug in small quantities. Hong Kong had its first crack seizure in 1986.

There is also some evidence of barbiturate abuse in the upper-class Chinese and expatriate communities. The largest "soft" drug problem is methaqualone abuse. During 1986 police seized 259,000 tablets of Mandrax, a brand name of methaqualone.

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