CHINA BUILDING SHARE IN HEROIN TRADE

CHINA could overtake Thailand and Burma as the world centre for heroin
production, a national police conference has heard.

The Australian Federal Police told the Brisbane conference recent surveys
and drug seizures showed that heroin imported to the country was
increasingly coming from China.

Queensland police drug squad acting det-insp Terry Ryan said it appeared
China had increased production of opium poppies.

It also had many sea ports which, combined with the recent takeover of Hong
Kong, provided outlets for drug distribution.

"Heroin is still coming from south-east Asia with large quantities from
Thailand and Burma, but the AFP have identified that China is increasing its
market share of the heroin production area," Insp Ryan said.

The Multi-Jurisdictional Crime Conference was told that drugs, prostitution
and illegal fishing were the key spheres of Asian crime for Australian law
enforcement.

Police Commissioner Jim O'Sullivan, who officially opened the national
conference, said Queensland led the way in fighting Asian crime because of
its high level of co-operation with other law enforcement agencies and the
Asian community.

More than 120 Australian law enforcement agencies and health authorities
attended the two-day conference.

Its aim was to reinforce the need for national strategies to combat the
illicit drug trade and crimes linked with Asian elements.

Insp Ryan said intelligence suggested Queensland was at the end of the
delivery chain for heroin importers.

The state's coastline presented a significant security problem.

New South Wales and Victorian police told the conference of ways to tackle
the exploitation of Asian females brought to Australia for prostitution.

Insp Ryan said southern police reported Thai women would often voluntarily
enter into contracts where they would be paid about $40,000 upfront and work
off their debt after they were "onsold" to traders based in Australia.

"(So) $67.50 went to the owner of the prostitute, $2.50 for the protector
and the other $30 to the brothel owner," he said. "They have services to
perform which is around 60 clients a week at a $l00 a time and for the first
12 months they do not get any of the money."

Insp Ryan said that in their second year, the women then had to repay "board
and keep" for the first 12 months and would often stay indebted to their
"owners".

He said police had no evidence to suggest Asian prostitution existed in
Queensland because legislation - under which organised prostitution is
illegal - was a deterrent

Checked-by: Don Beck