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RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH RUEHVC
DE RUEHHK #0062/01 0090959
ZNR UUUUU ZZH
R 090959Z JAN 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 6618
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE

UNCLAS SECTION 01 OF 04 HONG KONG 000062 
 
SIPDIS 
 
STATE FOR EAP/CM AND INL/AEE FOR JOHN LYLE 
 
E.O. 12958: N/A 
TAGS: SNAR HK
SUBJECT: HONG KONG 2008-2009 INTERNATIONAL NARCOTICS CONTROL 
STRATEGY REPORT (INCSR) PART 1, DRUGS AND CHEMICAL CONTROL 
 
¶1. Summary: The Hong Kong Special Administrative Region (HKSAR) is 
not a major transshipment point for illicit drugs destined for the 
international market.    Some narcotics shipments do transit Hong 
Kong's high volume port, but its efficient law enforcement efforts, 
the availability of alternate routes, and the development of port 
facilities elsewhere in southern China prevent the HKSAR from 
becoming a major transshipment point. Some traffickers continue to 
operate out of Hong Kong, arranging shipments from nearby 
drug-producing countries via Hong Kong to other international 
markets, including to the United States. The HKSAR Government 
actively combats drug trafficking and abuse through legislation and 
law enforcement, preventive education and publicity, treatment and 
rehabilitation, as well as research and external cooperation. The 
1988 UN Drug Convention, to which the People's Republic of China 
(PRC) is a party, also applies to Hong Kong. 
 
¶2. Status: Hong Kong's position as a key port city in close 
proximity to the Golden Triangle and mainland China historically 
made it a natural transit/transshipment point for drugs moving from 
Southeast Asia to the international market, including to the United 
States. In recent years, Hong Kong's role as a transshipment point 
has diminished due to law enforcement efforts and the availability 
of alternate routes in southern China. Despite the diminished role, 
some drugs continue to transit Hong Kong to other international 
markets. Some drug-traffickers continue to use Hong Kong as their 
financial base of operations, including investors involved in 
international drug trafficking activity who reside in Hong Kong. 
Drug trafficking groups operating in Hong Kong are primarily 
transnational in nature. 
 
Hong Kong law enforcement officials maintain very cooperative 
liaison relationships with their U.S. counterparts in the fight 
against drugs. According to HKSAR authorities, drugs seized in Hong 
Kong are smuggled mostly for local consumption and to a lesser 
extent for further distribution in the international market. The 
56th  edition of the Hong Kong Central Registry of Drug Abuse 
(HKCRDA) for 2006 reported that the total number of reported drug 
abusers in recent years declined from 18,513 persons in 2001 to 
13,258 in 2006.  While at this writing, the 57th edition of the 
HKCRDA was not yet available, the Hong Kong Narcotics Bureau 
reported that the number of reported drug abusers in 2007 increased 
slightly to 13,491, with most of the increase attriuted to new 
users under the age of 21.  Through September 2008, the number was 
up yet again over the same period in 2007. 
 
Though heroin is traditionally the most commonly abused drug in Hong 
Kong, the number of heroin abusers has been declining for years. In 
2007, there were 7,390 (or 55.2 percent of drug abusers) reported 
heroin users, with the number of reported heroin users falling 
further in the first three quarters of 2008. The rising trend in the 
abuse of psychotropic substances in evidence over the last 10 years 
continued. The number of psychotropic substance abusers increased to 
7,810, up six percent from the previous record high in 2006. In the 
first three quarters of 2008, psychotropic drug abusers increased 
four percent from the same period in 2007.  Among psychotropic 
substances, the most commonly abused drug is Ketamine (34.2 percent 
of drug abusers). Triazolam/midazolam/zopiclone (9.4 percent), 
Methylamphetamine/Ice (8.9 percent) MDMA/Ecstasy (5.4 percent), 
cannabis (4.9 percent), cocaine (4.7 percent) and cough medicine 
(4.3 percent) are also regularly abused. 
 
In 2008, the Hong Kong Government continued to make tackling 
psychotropic substance abuse a high priority. The Hong Kong 
Government has identified the continuing prevalence of psychotropic 
substance abuse and the growing trend of young people experimenting 
with drugs as their major area of concern in the battle against drug 
abuse and trafficking. 
 
¶3. Actions Against Drugs in 2008 
Policy Initiatives:  Although there were no major policy changes in 
2007 and 2008, the Hong Kong Government continued to work with 
existing counternarcotics policies and strategies in drug prevention 
efforts. Minor policy changes included the replacement of the Action 
Committee Against Narcotics on Research by the Research Advisory 
Group (RAG). Apart from monitoring research, the RAG provides advice 
on interpreting drug abuse statistical trends and drawing together 
the latest research findings from both local and overseas 
narcotics-related studies.  The Hong Kong Government publicly 
discussed the idea of mandating drug testing in public schools, but 
public opposition to the proposal appears to have stalled it. 
 
Law Enforcement Efforts: Hong Kong's law enforcement agencies, 
including the Hong Kong Police and Hong Kong Customs and Excise 
Department (HKCED), place high priority on meeting the objectives of 
the 1988 UN Drug Convention. Their counternarcotics efforts focus on 
the suppression of drug trafficking and the control of precursor 
chemicals. The Hong Kong Police have adopted a three-level approach 
to combat narcotics distribution: at the headquarters level, the 
focus is on high-level traffickers and international trafficking; 
 
HONG KONG 00000062  002 OF 004 
 
 
the regional police force focuses on trafficking across police 
district boundaries; and the district level police force has 
responsibility for eradicating street-level distribution. In 2008, 
the Hong Kong Police continued ID checks on entertainment premises 
in order to deter young people from visiting venues where drugs are 
more easily available. 
 
The HKCED's Chemical Control Group, in cooperation with the U.S. DEA 
office in Hong Kong, closely monitors the usage of precursor 
chemicals and tracks the export of suspicious precursor chemical 
shipments to worldwide destinations with significant results 
impacting on several regions including the United States. Due to an 
effective chemical tracking program, in April 2008, a significant 
seizure of 5.6 million tablets of pseudoephedrine was made by law 
enforcement authorities in Guatemala.  The seizure of this 
consignment exemplifies the close and successful cooperation between 
the DEA Hong Kong Office and Hong Kong Customs and Excise 
authorities against the illicit diversion of chemical precursors for 
manufacture of dangerous drugs. 
 
Corruption: The HKSAR government strongly opposes illicit production 
or distribution of narcotic or psychotropic drugs or other 
controlled substances, and the laundering of proceeds from illegal 
drug transactions. No senior government official is alleged to have 
participated in such activities. Hong Kong has a comprehensive 
anticorruption ordinance that is effectively enforced by the 
Independent Commission Against Corruption (ICAC), which reports 
directly to the Chief Executive. In addition, the UN Convention 
Against Corruption, which the PRC ratified on January 13, 2006, is 
applicable to Hong Kong. 
 
Agreements and Treaties/International Cooperation:  Upon resuming 
the exercise of sovereignty over Hong Kong, China advised the UN 
Secretary General that the 1961 Single Convention and the 1972 
protocol, the Convention on Psychotropic Substances, and the 1988 UN 
Drug Convention apply to Hong Kong. Also, the UN Convention against 
Transnational Organized Crime and the UN Convention against 
Corruption apply to Hong Kong. Hong Kong has "mutual legal 
assistance in criminal matters agreements (MLAA)" with the United 
States and many other countries. Hong Kong signed surrender of 
fugitive offenders' agreements with Finland, Germany and Korea in 
2006 and with Ireland in 2007 to bring the total number of countries 
with which Hong Kong has such agreements or treaties to 17, 
including the U.S. Hong Kong has also signed transfer of sentenced 
persons' agreements with eight countries, including the U.S. In 2007 
Hong Kong signed a mutual legal assistance agreement with Finland. 
 
Hong Kong law enforcement agencies enjoy a close and cooperative 
working relationship with their mainland counterparts and 
counterparts in many countries. In October 2008, a Colombian money 
launderer was successfully extradited from Hong Kong back to the 
United States to face federal money laundering charges. The subject 
was arrested on a Provisional Arrest Warrant filed under the MLAA. 
In this same case and pursuant to a U.S. MLAA request, the Hong Kong 
authorities restrained over $1.1 million dollars in several Hong 
Bank accounts belonging to this subject.  The funds in those banks 
are pending U.S. forfeiture proceedings. 
 
Last year Hong Kong's Joint Financial Intelligence Unit (JFIU) 
entered into Memoranda of Understanding in respect to intelligence 
sharing with the financial intelligence units of Australia, Korea, 
Japan, Singapore and Canada. In the eleven years since Hong Kong 
returned to Chinese control, liaison information sharing and 
data-networking functions between Hong Kong and Chinese authorities, 
such as customs information, have been formalized and have 
successfully increased the levels of inter-system cooperation and 
efficiency. Training is an important element of cooperation between 
U.S. and Hong Kong law enforcement counterparts. In November 2008, 
the U.S. Internal Revenue Service/Criminal Investigation Division 
(IRS/CID) participated in a two-week financial training seminar 
hosted by Hong Kong's Joint Financial Intelligence Unit (JFIU) at 
Hong Kong Police Headquarters. 
 
Hong Kong participates in Project Prism and Operation Cohesion, both 
managed by the International Narcotics Control Board, to control the 
illegal diversion of chemical precursors. Hong Kong also 
participates in joint tracking programs, which allow Hong Kong 
Customs and the U.S. Drug Enforcement Agency to target the movement 
of precursor chemical shipments exported from, transshipped or 
transiting via Hong Kong to high-risk countries. In addition to the 
monitoring of controlled chemical precursors, Hong Kong monitors the 
movement of ephedra, a raw material for the manufacture of 
ephedrine. The 1988 UN Drug Convention, 1961 UN Single Convention as 
amended by the 1972 Protocol, and the 1971 UN Convention Against 
Psychotropic Substances are applicable to Hong Kong. 
 
Cultivation and Production:  Although Hong Kong police detected and 
destroyed several minor drug production and cultivation enterprises 
in 2006, including four small-scale crack cocaine production labs 
 
HONG KONG 00000062  003 OF 004 
 
 
and three cannabis cultivation sites, Hong Kong is generally not 
considered a significant producer of illicit drugs. 
 
Drug Flow/Transit: Some drugs continue to flow through Hong Kong for 
the overseas market, to destinations including Australia, China, 
Japan, Taiwan, Europe, and the United States. In July 2007, based on 
an aggressive container profiling program, the HKCED seized 160 
kilograms of cocaine which was concealed within containerized cargo 
believed to be destined for European markets. The container was 
transiting through Hong Kong in order to disguise its origin. 
Traffickers use land routes through mainland China to smuggle heroin 
into Hong Kong. In 2007, Hong Kong Customs authorities arrested 14 
Thai nationals at Hong Kong International Airport attempting to 
smuggle heroin into Mainland China. 
 
There continues to be an increase of cocaine and other ATS 
(amphetamine-type stimulants) such as methamphetamine, MDMA, and 
ketamine being smuggled into Hong Kong.  Cocaine consumed in Hong 
Kong is primarily sourced out of Southern China (Guangzhou 
Province).  The cocaine and other ATS drugs destined for Hong Kong 
are usually transported via courier (by train), in ounce and gram 
quantities.  Couriers also still continue to smuggle drugs by way of 
concealment methods through the airport.  In July 2008, Hong Kong 
Police authorities seized over 13 kilograms of powdered cocaine 
concealed in plastic containers of protein powder and arrested the 
two couriers at Hong Kong International Airport. 
 
The heavy volume of vehicle and passenger traffic at the land 
boundary between the Chinese Mainland and Hong Kong continues to 
pose difficulties in the fight against the trafficking of drugs into 
and out of Hong Kong. In an effort to curb Hong Kong's role as a 
transit/transshipment point for illicit drugs, the HKSAR maintains a 
database of information on all cargo, cross-border vehicles, and 
shipping. The air cargo clearance system, the land border system and 
the customs control system are all capable of quickly processing 
information on all import and export cargoes, cross-border vehicles 
and vessels. The local Chinese population dominates the Hong Kong 
drug trade. Contrary to common belief, there is not a significant 
and direct connection between Hong Kong narcotics activity and Hong 
Kong triads at the wholesale and manufacturing level. Therefore, 
drug investigations are not focused on known triad societies, but 
rather on the particular trafficking syndicates or individuals 
involved. Trafficking destined for mainland China by Southeast 
Asians continues to be prominent. 
 
Domestic Programs: The Hong Kong Government uses a five-pronged 
approach to confront domestic drug problems, including legislation 
and law enforcement, preventive education and publicity, treatment 
and rehabilitation, research, and external cooperation. In 2007, the 
Hong Kong Government's preventative education policy efforts 
continued to focus on youth and parents. The Hong Kong Government 
has provided a comprehensive drug prevention program throughout Hong 
Kong's education system.  As previously noted, the Hong Kong 
Government publicly discussed the idea of mandating drug testing in 
schools, but public opposition to the proposal appears to have 
stalled it. 
 
In 2007 and 2008, the Hong Kong Police Narcotics Division continued 
publicity efforts to teach Hong Kong adolescents about the 
detrimental effects of commonly abused drugs like Ketamine by using 
announcements in the public interest through TV and radio 
broadcasts, short internet films, and wide dissemination of posters 
and printed materials. The Hong Kong Government's Narcotics Bureau 
partners with youth organizations and groups such as Junior Police 
Call, the Hong Kong Red Cross, and the Scout Association of Hong 
Kong to promote an anti-counternarcotics message to youths. The Hong 
Kong Government also implemented a public awareness campaign to 
educate the public about the harmful effects of Ketamine and 
Ecstasy, the two most commonly abused drugs among youth. A Hong Kong 
Government sponsored Hip Hop Dance and Music Competition encourages 
youth to participate in healthy activities and reinforces a healthy 
drug-free lifestyle. The Hong Kong Government also launched an 
updated drug education kit to disseminate counternarcotics messages 
in schools and regularly publicizes the consequences of 
cross-boundary drug abuse. 
 
In June 2004, the Hong Kong Government formally opened the Drug 
Information Centre (DIC), funded by the Hong Kong Jockey Club. The 
DIC is the first exhibition center in Hong Kong dedicated to 
counternarcotics education. Since the DIC's opening, it has received 
more than 100,000 visitors for various drug-prevention education 
activities. The Government also continued to commission 
nongovernmental organizations to assist in educating primary and 
secondary school children by sponsoring counternarcotics education 
programs in local schools and conducting counternarcotics seminars 
with parents, teachers, social workers and persons from various 
uniform groups. For the 12 month period ending in August 2007, 
163,000 school-age children participated in drug education programs 
provided by the government. 
 
HONG KONG 00000062  004 OF 004 
 
 
 
The Hong Kong Government also continued to implement a comprehensive 
drug treatment and rehabilitation program in 2008. The fourth 
Three-year Plan on Drug Treatment and Rehabilitation Services was 
released in March 2006. The plan sets out the overall direction for 
enhancing Hong Kong's treatment and rehabilitation services and 
increases focus on early intervention efforts and focus programs 
that reach out to substance abusers. The Department of Health and 
the Social Welfare Department continued to operate seven residential 
drug treatment centers and five counseling centers for psychotropic 
substance abusers and the Department of Health continued its 
operation of a methadone treatment program. The Correctional 
Services Department continued to provide compulsory treatment for 
convicted persons with drug abuse problems.  In early 2008, the Hong 
Kong Government launched a pilot cooperation scheme to refer abusers 
to designated medical practitioners who provide comprehensive health 
check-ups and motivational interviews, to alert abusers of any signs 
of health deterioration as a result of drug use, and to heighten 
abusers awareness of early treatment options. 
 
¶4. U.S. Policy Initiatives and Programs 
Bilateral Cooperation: The U.S. Government and the HKSAR continue to 
promote sharing of proceeds from joint counternarcotics 
investigations. In May 2003, Hong Kong began participating in the 
U.S. Container Security Initiative (CSI), which U.S. law enforcement 
believes will increase the potential for identifying shipments of 
narcotics, even though its focus is on terrorism and weapons of mass 
destruction. Hong Kong is also an active participant in the 
International Law Enforcement Academy (ILEA) in Bangkok, Thailand. 
From 2003 to October 2005, Hong Kong Customs, Hong Kong Department 
of Health and the U.S. DEA launched a joint operation to monitor the 
movement of precursor chemicals that are used in the production of 
methamphetamine and other drugs from Hong Kong to high-risk 
countries. The operation effectively decreased the frequency of 
these shipments and, through the high level of information exchange 
and timely international tracking, indicated strong cooperation 
between Hong Kong Government officials and their U.S. counterparts. 
 
 
To further strengthen international cooperation against trafficking 
of precursors used in the production of amphetamine and other 
amphetamine-type stimulants (ATS) drugs, Hong Kong secured an 
agreement with the U.S., Mexico and Panama to impose stringent 
controls on such shipments. Since the agreement's implementation in 
April 2005, no shipment of such products to Mexico or any other 
high-risk countries has been detected. Another cooperative chemical 
initiative was implemented in February 2006. This program allows the 
U.S. DEA and Hong Kong Government to monitor and track other 
precursor chemical shipments sourced from countries or territories 
in Asia, which transit through Hong Kong, and are destined to 
high-risk countries. 
 
The Road Ahead: The Hong Kong Government has proven to be a valuable 
partner in the fight against drug trafficking and abuse. Hong Kong 
law enforcement agencies, among the most effective in the region, 
continue to cooperate closely with U.S. counterparts. The U.S. 
Government will continue to encourage Hong Kong to maintain its 
active role in counternarcotics efforts. 
DONOVAN