Drug Intelligence Brief

Hong Kong's Changing Role in Drug Trafficking - October 1999

Summary

Ethnic Hong Kong Chinese continue to play an important role in international drug trafficking, even though Hong Kong’s role as a drug transit/transshipment point has significantly diminished over the past several years. Furthermore, Hong Kong has had several small-scale seizures of Southeast Asian heroin and methamphetamine in the past several years, but none were proved to be destined for the United States. Additionally, no heroin seizures in the United States in recent years have been transshipped through Hong Kong. Most of the heroin seized by Hong Kong authorities was destined for the local Hong Kong market, while most of the methamphetamine was destined for other Asian countries in the region. No current evidence exists to show that Hong Kong produces heroin, methamphetamine, ecstacy, or any other synthetic drug.

Background

In the 1960s, 1970s, and 1980s, international heroin traffickers used the then British Crown Colony of Hong Kong as a major transportation hub. Multikilogram amounts of heroin from the Golden Triangle (see map on page 2) were smuggled into Hong Kong, primarily by sea, stockpiled, then concealed in legitimate cargo, and shipped to the international market.

By 1990, the number of Wa-operated heroin refineries in the Shan State of Burma had increased significantly and many of these newer clandestine laboratories were located close to the Burma–China Border. During the same period of time, the Peoples Republic of China (PRC) had relaxed restrictions on travel and tourism and its borders were opened to increased commerce and trade, not only with Hong Kong, but also with Burma, Thailand, Laos, and Vietnam. Trucks and private vehicles now moved relatively freely from the Burma-China frontier to Kunming (Yunnan Province) and Nanning (Guangxi Province); and then onward to the southern coastal cities of Guangzhou, Shenzhen, and Zhuhai (Guangdong Province); Macao; Hong Kong; and Xiamen and Fuzhou (Fujian Province).

Along with the increase in trade in the 1990s, drug smuggling through the PRC increased sharply, resulting in the formation of a major new drug trafficking route for Golden Triangle-based heroin traffickers. Heroin seizures, as well as heroin addiction, in southern China rose dramatically in the 1990s.

DRUG TRAFFICKING: THE CHINA ROUTE

Hong Kong in the 1990s

The attraction of Hong Kong as a drug transshipment center has diminished significantly with the opening of the Mainland. As the PRC’s infrastructure has improved, the drug traffickers have been provided with an alternate smuggling route and a new market for heroin.

Drug trafficking into Hong Kong now takes place largely along land routes, rather than from adjacent seaports. In earlier years, Thai fishing trawlers often were used to smuggle heroin from Thailand to Hong Kong, but that method appears to have been abandoned largely in favor of the “China route.” The Golden Triangle area, especially the Shan State of Burma, remains the source of all heroin seized in Hong Kong. Much of Hong Kong’s heroin now is transported through Yunnan and Guangxi Provinces into Guangdong Province, and then travels across the land border into Hong Kong for local consumption.

In July 1997, the British Colony of Hong Kong reverted back to the PRC after a century of rule by the United Kingdom. The Hong Kong Police (Narcotics Bureau) and the Hong Kong Customs and Excise Department are the key Hong Kong agencies engaged in drug law enforcement efforts. The Drug Enforcement Administration (DEA) has enjoyed excellent working relationships with both of these agencies since establishing an office in Hong Kong in the early 1970s, and has participated in numerous, successful, joint counterdrug operations with these Hong Kong counterparts over the years. Heroin seizures in the PRC increased five-fold in the 1990s (see table), while Hong Kong seizures have decreased.

Heroin Seizures in China (kilograms)

Heroin that originates in Burma's Shan State is transported through Southern China to Guangdong Province.
The shaded area is the Golden Triangle.

Heroin Trafficking

Although most of the heroin seized in Hong Kong is destined for local consumption, small shipments, usually 10 kilograms or less, continue to transit/transship Hong Kong enroute to other Asian countries. In almost all cases, these shipments are either by courier or by mail. Again, as with the United States, no significant seizures in recent years in the Far East or Australia have originated from Hong Kong. In December 1997, 42 kilograms of heroin were seized in Canada from a flight which originated in Thailand, but transited Hong Kong. Likewise, Taiwan authorities have made numerous seizures from couriers on flights which originated in Thailand, but transited Hong Kong. These seizures seldom exceed 2 kilograms. In January 1999, Hong Kong Customs and Excise Department officers at Chep Lap Kok International Airport made four separate seizures of heroin from couriers bound for Taiwan. The total amount of heroin seized in the four seizures was 11.9 kilograms. At that time, customs officials feared Hong Kong was becoming a transshipment point for heroin bound for Taiwan. However, this has yet to be proven. In recent cases involving ethnic Hong Kong Chinese investigated by the DEA Hong Kong Country Office, heroin is shipped from the PRC and other Southeast Asian countries directly to the international market, bypassing Hong Kong.

Methamphetamine Trafficking

Methamphetamine, in its crystalline “ice” form, is produced primarily in Guangdong and Fujian Provinces, PRC. Most of the PRC-produced methamphetamine is smuggled directly from the PRC to other Asian countries; however, some of this product is transshipped through Hong Kong to Taiwan, Japan, South Korea, and the Philippines.

To date, no significant amounts of PRC-produced methamphetamine have been seized in North America. Small amounts of “ice” have been seized in Guam and Hawaii over the past 3 years, but there does not appear to be a sizeable market for PRC-produced methamphetamine in the United States.

Heroin Abuse in Hong Kong

Southeast Asian heroin is the most prevalent drug of abuse in Hong Kong, with methamphetamine ranking second. Official Hong Kong Government figures estimate the number of heroin addicts to be between 40,000 and 50,000. However, this estimate is questioned by many professionals in the health and social services sector who believe the actual number of addicts may be four or five times the official government estimate, which is based upon voluntary reporting by various law enforcement, treatment, and welfare organizations.

In Hong Kong “cutting houses,” small bricks of compressed high-purity heroin are pulverized into powder form then blended with antipyrine, caffeine, or strychnine as “cutting agents”—to double the amount of powder. Another powder substance, midazolam, is added to prolong the narcotic effects of the heroin. The adulterated heroin then is sold to street dealers.

Hong Kong: An Outlook

Ethnic Hong Kong Chinese will continue to be involved in international heroin trafficking at the highest levels, but these traffickers increasingly will conduct their drug businesses in other Asian countries, outside of the Hong Kong Special Administrative Region. As the PRC continues to develop its roads, rail systems, airports, sea container ports, and telecommunications systems, the role of the PRC as a drug transit area will increase, while Hong Kong’s role in the drug trade will continue to decrease. One example is Shanghai. As Shanghai develops its financial and commercial sectors, drug trafficking and money laundering activities may shift from Hong Kong to Shanghai. In addition, Southeast Asian heroin will remain the most prevalent drug of abuse in Hong Kong.