LOSING A WAR: HEROIN MORE PLENTIFUL, CHEAPER, PURER THAN EVER

Sydney is the illegal drug capital of Australia, where heroin is now
more freely available, almost 60 per cent pure, and cheaper than ever,
says the Australian Bureau of Criminal Intelligence.

A wide-ranging report released yesterday by the bureau covers
everything from world production of heroin to its purity in Cabramatta
and the old and new methods of selling it at street level, which
includes hiding it in children's chocolates.

"Street-level dealers continue to hide heroin in small balloons in
their mouth," the report said.

"If police approach them they swallow the balloons.

"NSW police reported heroin being concealed in containers of a type
usually used to hold small toys within chocolate eggs."

The Australian Illicit Drug Report 1999-2000 paints a grim picture for
law enforcement, warning that an opium production boom in Afghanistan,
which started in 1999, could soon lead to an even greater flood of
heroin on our streets.

A reading of the 144-page report suggests that despite the best
efforts of police, the war against drugs is failing, with only a small
percentage of heroin being seized. It also points out that other drugs
- - cannabis, cocaine and amphetamines - are also freely available,
particularly in Sydney.

The Police Minister, Mr Whelan, said it was "factually inaccurate" to
say the war on drugs was lost because recent large drug seizures had
led to the price of heroin rising - not falling.

But he said Sydney was "regrettably the port of call for the dumping
of heroin" into Australia because it was the largest east coast city -
and therefore close to Asian drug markets - and had the most shipping
movements.

The bureau says while heroin arrives at a number of points in
Australia, most comes into Sydney before being brokered and
distributed to other centres.

"NSW Police intelligence suggests that the main suppliers of heroin
coming into the State are Cantonese Chinese," the report says.

Two groups had been identified with heroin distribution, "a Shanghai
syndicate and a joint Vietnamese-Chinese group".

The report says while Vietnamese and Chinese crime groups have been
responsible for heroin distribution, a new trend is emerging. The
Sydney office of the National Crime Authority has found that
"Cambodian crime groups, which were previously not prevalent, are now
becoming more involved". Vietnamese criminals are seen to be more
entrepreneurial than other Asian gangs, being less hesitant about
doing business with others.

But the report points out that while Asian gangs will sell a
"half-catti" - a 350 gram block of heroin - to Asian distributors for
between $40,000 and $50,000, "higher prices are demanded for sales to
Caucasians".

The report confirms what most Sydneysiders already know - that
Cabramatta is Heroin Central.

It is the "most active centre for heroin distribution", and police
have found that users travel from all over the city to buy heroin.

"Cabramatta police reported residential premises beingrented solely
for the purpose of heroin distribution," the report says. "These
residences are heavily fortified: security doors and grilles make
forced entry difficult."

Registered import-export companies linked to Asian and Lebanese groups
"continue to facilitate the importation of heroin to Australia".

Heroin is cheapest in NSW ($240 a gram) followed by Victoria ($300).
"The price has fallen by about $150 a gram in these States, to the
point where it is now half what it used to be."

Sold in caps on the street, users pay $20-$30.

The report says that NSW recorded the highest median heroin purity in
1999-2000 at 59 per cent, with Western Australia next at 55 per cent,
although Victoria Police had recorded seizures with a purity as high
as 85 per cent.

The bureau says law enforcement agencies reported 3,668 heroin
seizures resulting in 734 kilograms of the drug, although this was not
a true figure because no figures were available from South Australia.

"Despite the high number of heroin seizures at the Customs border and
in the various jurisdictions during 1999-2000, there is no evidence
that heroin availability has diminished," the report says.

"Heroin remains readily available despite reports of temporary
shortages in some cities ...

"Despite the best efforts of law enforcement agencies, heroin remains
freely available in Australian cities.

"Demand is strong, so the incentive is there to import heroin for
sale."

The report says that opium production in Afghanistan "increased
dramatically in 1999, to over 4,600 tonnes". Afghanistan produced 77
per cent of the world's illicit opium while Burma was responsible for
about 17 per cent.

Police commissioners from around the country form the board of control
of the Bureau of Criminal Intelligence. However a spokesman for the
NSW Commissioner, Mr Peter Ryan, said he had not read the report.

The Justice Minister, Senator Ellison, rejected Opposition claims that
the report showed the Government had buried its head iu the sand in
claiming victory for its Tough on Drugs strategy.