ALTHOUGH POLICE IN SEVERAL CITIES HAVE UNDERCOVER ANTIFENCING UNITS OR OPERATIONS, AND THE FEDERAL GOVERNMENT IS WILLING TO FUND THEM, THEIR SUCCESS HAS BEEN QUESTIONABLE IN SAN DIEGO. A CONTINUING RISE IN THEFTS INDICATES THAT THE MARKET FOR STOLEN GOODS, AND PERHAPS FENCING, CONTINUES TO FLOURISH. MOREOVER, SAN DIEGO POLICE FEEL THAT, WHILE FENCING OPERATIONS ARE FEW, THE PUBLIC IS WILLING TO BUY STOLEN PROPERTY DIRECTLY FROM THIEVES. FENCING IS DIFFICULT TO STOP BECAUSE MANY FENCES ARE OFTEN BUSINESSMEN WITHOUT CRIMINAL RECORDS, CITIZENS ARE UNCOOPERATIVE WITH POLICE, FENCING HAS LOW VISIBILITY AND PROSECUTION REQUIREMENTS DEMAND THAT SUSPECTS BE IN POSSESSION OF IDENTIFIED STOLEN PROPERTY THEY KNOW IS STOLEN. AN ANTITHEFT STRATEGY POPULAR WITH POLICE IS THE UNDERCOVER STOREFRONT OPERATION, IN WHICH POLICE MASQUERADE AS BUSINESSMEN BUYING STOLEN GOODS. IN THESE OPERATIONS, PROSECUTION OF THIEVES CAUGHT WHILE UNLOADING THEIR BOOTY, AS VIDEO TAPES ARE MADE OF ALL SALES, HAS BEEN UNUSUALLY SUCCESSFUL: 92 PERCENT OF DEFENDANTS IN A SAN DIEGO OPERATION WERE FOUND GUILTY, AS OPPOSED TO 52 PERCENT PROSECUTED THROUGH ROUTINE INVESTIGATIONS. IN ADDITION, 87 PERCENT OF STOLEN PROPERTY WAS RETURNED TO ITS OWNERS, AS OPPOSED TO THE NORMAL RATE OF 9-12 PERCENT. HOWEVER, UNDERCOVER OPERATIONS ARE COSTLY AND REQUIRE A CONSTANT FLOW OF CASH TO BUY STOLEN GOODS. THEY ALSO REQUIRE SKILL AND TIME TO DEVELOP INFORMANTS AND VERIFY THEIR INFORMATION. ADDITIONAL UNDERCOVER OPERATIONS TO STALK BURGLARS ARE RECOMMENDED, AND A COMBINATION OF TRADITIONAL INVESTIGATIONS, UNDERCOVER OPERATIONS FOR HIGH-CRIME AREAS, AND IMPROVED PUBLIC AND POLICE EDUCATION ABOUT THEFT AND FENCING ARE RECOMMENDED FOR EFFECTIVE BURGLARY AND FENCING CONTROL. REFERENCES ARE INCLUDED. (PAP)