The report first presents trend indicators through 1992 for heroin, cocaine, chemical drugs, cannabis, and the drug money flow. Information on heroin addiction in Canada indicates that it is a problem primarily in the large metropolitan areas of Vancouver, Toronto, and Montreal. The availability of heroin decreases according to the distance from these metropolitan centers. The Golden Triangle remains the primary source of opium and heroin for Canada and the world market. Statistics indicate that more cocaine was available in Canada than ever before in 1989. A number of new cocaine trafficking patterns emerged in 1989/90. Stepped-up enforcement in the United States has caused traffickers to turn increasingly to Mexico as a transshipment point for cocaine bound for the North American market. MDA, PCP, and methamphetamine remained the major chemical products of domestic clandestine laboratories in 1989. The relatively low and stable prices of chemical substances made them highly attractive to teenagers and young adults. Marijuana, hashish, and liquid hashish remained the most widely abused illicit drugs in Canada during 1989/90. Intelligence indicates that proceeds generated from drug trafficking in Canada were sent abroad to pay for illicit drugs, to be laundered, or to be repatriated as profits by criminal organizations based in source countries. Figures are also provided on major Canadian-related drug seizures in 1989. 45 figures