WAREHOUSE IN RICHMOND YIELDS 70 KILOS OF HIGH-GRADE HEROIN

Vancouver RCMP have seized 70 kilograms of high-grade heroin and two
Mercedes Benz automobiles and arrested five people in what they consider a
major blow to Asian organized crime.

The suspects arrested in Richmond, Toronto and Hong Kong have not been
linked to any known Asian crime gangs.

Police said those arrested were dealing with a major organization that was
shipping heroin from the Golden Triangle in Southeast Asia, and stockpiling
it in Vancouver before shipping it elsewhere in North America.

The heroin was found in a Richmond warehouse where it was being stored
before shipment to lower-level dealers in the North American market.

"It illustrates that Vancouver is being used as a transnational shipping
point for heroin," said Staff Sergeant Al Armstrong, who led the operation
as team leader of the RCMP's Greater Vancouver drug section.

Police said the organization believed it had enough heroin to influence
heroin prices, by withholding product to force up the price.

Simon Fraser University criminologist Neil Boyd said the police have an
uphill battle to fight.

While large seizures can temporarily affect supply and price, the long-term
impact of police seizures is negligible, he said. Despite the international
police actions, heroin sold in the streets of North America is more pure and
cheaper than that available 20 years ago.

"Historically they have had very little long-term success globally or
nationally," Boyd said.

If the police were more successful and seized so much heroin that its price
increased over the long term, the result could cause addicts to commit more
crimes in order to feed their more expensive habits, he said.

"They might actually create a more dangerous situation on the streets," Boyd
said.

Police would not say where the heroin was destined beyond saying it was
intended for the North American market. The investigation is continuing and
seizures of more illegal drugs, as well as charges under proceeds of crime
legislation, said Staff Sergeant Len Wolokoff of the RCMP's proceeds of
crime section.

Chi Hang Chan, 30, of Richmond appeared in Vancouver provincial court
Tuesday to face charges of possession of heroin for the purpose of
trafficking, conspiracy to traffic in heroin, and possession of the proceeds
of crime.

Kwok Yung Chan, 35, of Toronto, has been charged with conspiracy to traffic
in heroin. He was flown to Vancouver to face a charge of conspiracy to
traffic in heroin.

The Hong Kong Police Narcotics Bureau has also arrested and charged two
persons and charged them with dealing with property known or believed to
represent the proceeds of drug trafficking.

Siu Yuk-shan and her husband Chan Kok-hung were arrested in Hong Kong
Tuesday.

Kwok Yung Chan of Toronto, is the brother of Chan Kok-hung.

Chi Hang Chan and Kwok Yung Chan are brothers-in-law and are both from
China. Chi Hang Chan was awaiting deportation from Canada. Police allege the
two were travelling under false identities.

Kwok Yung Chan has already been charged in Toronto with an unrelated heroin
trafficking charge related to a seizure of 6.4 kilograms of heroin in May
1997.

Alleged money courier Lin Xin-nian was arrested in Hong Kong on Oct. 7 in
connection with the investigation.

In Hong Kong, $380,000 was seized in the first application of its recently
enacted proceeds of crime law.

Another $100,000 was seized in Vancouver.