After providing a brief history of the opium trade in Hong Kong and the narcotics market in post-World War II, the paper discusses the current drug situation in Hong Kong. Regarding drug supply, the paper notes that Hong Kong is a major port center and has a strategic location with reference to the Golden Triangle and southern China, giving Hong Kong a long history as a base for the transit/transshipment of drugs from Southeast Asia to overseas markets. The network for importing heroin into Hong Kong is well established. All observers agree that no. 4 heroin is the primary drug of choice in Hong Kong. Currently, a person can easily purchase heroin any time of day in every district of Hong Kong, and the price is reasonable; however, all sources of drug-use statistics indicate there has been a dramatic decline in the number of newly reported young people using heroin over the last 7 years. This decline has been offset by corresponding increases in the use of amphetamines and ketamine. The emergence of these drugs is one of the most significant changes in the history of Hong Kong's drug market. The Hong Kong Police Force has a frontline role in countering the possession, manufacturing, and trafficking of drugs within the territory. The movement of drugs into and out of Hong Kong falls within the jurisdiction of the Customs and Excise Department. 4 tables and 8 references