DRUG SMUGGLING PLOT.

Dunstan Times, Issue 3205, 4 February 1924, Page 7

DRUG SMUGGLING PLOT.

A 50,000,000 gold mark (£2,500,000) drug, smuggling plot ifias been discovered in Hamburg. Seventy of the most influential men in the 1 dyes and drugs tradb there have been arrested on a charge of defrauding,the German Government of export taxew on drugs smuggled into America and England and other countries, and warrants have been issued against many others. The Government’s Secret Service Department states the amount of the frauds' will probably exceed 50,000,000 gold marks. Many of those arrested immediately confessed that they had smuggled enormous quantities of cocaine, codeine, and other drugs out of the country during the last two years. In most cases the shipments were concealed among bulky consignments of other chemicals. The Hamburg Schupo Police, who have been called in to help the Secret Service men owing to the easiness of the swindle, state that English and American importers will bo involved. Seven important German chemical manufacturers who have their principal export establishments in Hamburg have had their licenses revoked by the Government already. Twenty-five of the most important German dyes and drug firms of world-wide reputation are said to be already involved in the swindle. From the German Government [mint ot view the seriousness of these vast frauds hinges almost exclusively upon the unlawful practice of shipping all kinds of drugs without declaring them and without paying the high export duty. The fact that enormous quantities of German narcotics may have been smuggled into England, America, and other countries concerns them little. What they are concerned about is that the men who have shipped these narcotics abroad have not only violated the German export tax regulations, but German and international regulations governing traffic in drugs. Under The Hague Convention the German Government must take drastic action in these cases. The export of dyes without paying taxes is the least important part of the conspiracy, because the profits aro much smaller than the profits from smuggling narcotics. The export tq*es on dyes and ordinary drugs range from 20 to 40 per cent. *