These users reported an average retail price of 78 pounds per gram, almost twice the average wholesale price of 41 pounds. Between October 1980 and June 1983, the retail and wholesale prices fell by 20 to 25 percent relative to inflation. Reports from heroin users and other indicators over this period suggested that heroin availability increased and that dilution (cutting) was much less significant than in the United States. The paper also discusses the distribution system and the effects of price fluctuation on consumption. Charts, tables, and 37 references. (Author abstract modified)