ENG-1979 — Page 171

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PUBLIC ORDER

vestigative capability. In 1979, there was a great improvement in the gathering and assess- ment of intelligence, despite a significant proportion of the bureau's personnel being diverted to problems caused by the influx of refugees from Vietnam and illegal immigrants from China.

Organised Crime Bureau

During the year, the Triad Society Bureau and the Special Crimes Bureau were amalgamated under the control of a senior superintendent and were renamed divisions, although their respective charters remained unchanged. The function of the Triad Society Division is the investigation of high-level triad personalities, the penetration of organised gangs, and the neutralisation of crime syndicates. During the year 575 people were arrested for triad- related offences, 44 were prosecuted for blackmail and 16 charges of conspiracy were brought. Gang activity throughout the year showed an increase with 775 gang attacks and 116 gang fights being reported.

The Special Crimes Division is charged with the responsibility of investigating crimes in which property valued at more than $250,000 has been stolen, in which a genuine firearm has been used, or in which unusual brutality or ingenuity has been displayed. In 1979, the division undertook 436 investigations which resulted in 69 people being charged and seven firearms being seized; property to the value of $936,400 was recovered.

Commercial Crime Bureau

During 1979, the Commercial Crime Bureau's Company Fraud Section completed a num- ber of complex and protracted investigations into several large-scale company frauds arising from the 1972-3 stock market boom. Inquiries into other complicated fraud cases continued and a number of new investigations were launched.

Investigation of frauds involving letters of credit and dishonoured cheques continued to be the major task of the General Fraud Section. Among the cases handled during the year was one large-scale maritime insurance fraud involving the deliberate sinking of cargo vessels. '

Successful action was taken against possessors and producers of counterfeit currency and valuable securities. In one case, seven men were arrested for possessing and uttering counterfeit United States banknotes valued at US$183,220. Because of its nature, the counterfeiting of currency has wide international implications.

Narcotics Bureau

Action in combating narcotics abuse was effective both in the field of enforcement and in the treatment of addicts in 1979. The police and the Customs and Excise Service frustrated the efforts of a number of groups importing and distributing heroin. These efforts, together with factors operating outside Hong Kong, led to a general increase in the price of heroin. Traffickers continued their attempts to import a relatively pure heroin base in small quantities through Hong Kong International Airport, Kai Tak. In June, it became apparent that there was a severe shortage of heroin in Hong Kong which resulted in the price of drugs at street-level increasing fourfold from January to August. At the same time, the quality and the general purity of the drug dropped from 28 per cent to 18 per cent purity, causing users to turn to methadone treatment centres for help. Attendance rose from approximately 5,450 at the end of May to 8,000 in August - an increase of 45 per cent. It is considered that the shortage of heroin, caused by the recent poor opium crop in the 'Golden Triangle' and increased pressure by law enforcement agencies abroad and at Kai