U.S. AID FOR THE DRUG TRAFFICKERS?
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Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP80-01601R001000060001-7
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
130
Document Creation Date:
December 9, 2016
Document Release Date:
November 6, 2000
Sequence Number:
1
Case Number:
Publication Date:
July 31, 1972
Content Type:
NSPR
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STATOTHR
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COtIRTI:ft ~ ~J~ OURNAT
S - ~3S?,~U3
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STATOTHR
AS 1'AR'I' ar the effort t.o combat drug
abuse-which, according to President Nixou
last summer, has "assumed the dimensions
of a nat.ioual?emergency"-the adtninistr.at.ion
? ~is committed to an alt-out attack on the irtter-
~national narcotics,trade, This involves not just
'the Brea]>itig up of the syndicaf.es that pro-
cess and import the heroin to the United
;States, but per>uading other governments,
particularly' 9n Southeast Asia where most of
-the world's heroin now originates, to come
. clown Bard on tlte? growers anal markctecrs.
i13ut is the Ni~:on administrat-iotl trying as hard
~as it could to cttt off this profitable trade at
It8 5011I'Ce?
Disturbing evidence is accumulating that
it may not: be.~~There is T1ae Politics of IIeroin
in Soutlreclst. El.sin, t.o be published this fall but
. 'excerpted itr tlrc July issue of Ilarper's by a
'young '1'.,;e graduate student specializing in
Soui:li~ast Asian history and politics. 't'his
'documents the involvelnent~ of high govern-
' !ment and r;ilitary officials in Laos and Thai-
land in 'J7e narcotics trac,'.c; it even charges
'complicii~~ ~~~~ the Central Intelligence Agency.
The CIA ha.s challenged all ~t.he author's a11e-
f;ations, asserting that most of them are with-
out faandatior..
`Tlever' is lacrr'c~ to .use .
But thet?e is also the study made last winter
~,by top-level officials of the CIA, the State Dc-
partment and the Pentagon, and just nory dis-
closed. This report concludes that there is no
prospect of cutting off the smuggling of nar-
cotics from Southeast Asia because of . "the
corruption, collusion and indifference at carne
places in some governments, particularly Thai-
land and South Vietnam." This conclusion,
-too, is being discounted by administration of-
. 'ficials, who argue that it is out of date and
"that "substantial progress" has been made
in the past four months.
Yet it would be naive to assume that a situa-
tiotr that vas so bad could have improved as
App~alawe~,~~rstRlel~~~~~~~?~Ilir~;~1~4n~~l~i~~i~n~i~.~i~'~ ~'~~~~~~t~i~=~~~
Dowling in .The Yansas Cily Star
"T'lae place to start is the
? .other end."
of the opiutM poppy, In 'Turkey's case fhe
United States is to help in compensating the
thousands of poasarit farmers for whom poppy-
growing has been an innocent livelihood for ;
centuries and who now must switch to other
cash crops, Whether the Turkish government
or anyone e1sC is compensating the many mid-
dlemen who have grown fat off the opium "
trade is not discussed publicly.
13ut the LJritcd States has another ~vay ,of
persuading reluctant governments to join the
anti-drug camtiaign. Congress t.ackecl on a pro-
vision to last year's foreign aid bill permitting
the President to suspend aici to any country
that doesn't tike action against the drug traf-
fic. The only .problem is that suspending yid
to the governments of Southeast. Asia would
virtually end the Vietnam war overnight.
It's a diletnrria; to be St1I'e. 131st it's worth
recalling that .last winter, when President
Nixon -was vehemently rciterai:ing this coun-
try's eommittrrent to keeping; President 'Thicu~
in power iu Saigon, even thottt;h this rti-as tllc
Inain obstacle to serious negotiations in Paris,
the same: regitrte was one of the major factors
being blamed by U.S. officials for the con-
tinuation of slur own "national emeraencv"
ing the success it scored last year when it was ~ l~eration and results.
vasive in Southeast Asia to a degree - - -
that even the most cynical American
finds hard to appreciate.
Before the withdrawal of ground
troops made itself felt in the South Viet- .
namese economy, the black market in
Saigon could supply almost. every Amer-
ican luxua?,y item (by local definitions)
small mouth to be carried by one or
two men -all stolen or procured by
bribery from American sources and alI
involving some degree of corrtapt pro-
tection. .
The attack on tl~e illicit drug traffic? ?
must be pushed with all our resources,
'!'here is no need to rehearse the rea-
sons.
Our most potent resource in South-
east Asia is money. The bill sponsored
by Steele and his colleagues (it has
been incorporated into the Foreign As-
sistance act now pending) sltquld be
passed and enforced.
And there must also be occasional op-
portunities for unilateral action against
which our Southeast Asian allies could
hardly protest in public. If a United
States Navy destroyer were to stop and
search. Thai trawlers (many of which ~,
apparently carry cargoes of heroin)
and destroy on the spat those found
with illicit cargoes, it would be a~t Least
more difficult for the drug merchants
to get their gopds out of their own
country. And }tow could the Thai gov-
ernmCnt protest such a laudable ac-
tion?
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STATOTHR
STATOTI~F~ T ~~- Jtn,x i ~7~
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+i.~ `u~1[~ ?~,~ `3rY' G.6' 1:~ k3 i3 F.''1~: ~ [S Gsi 11 la ~~ ,i~ ~ige:J ~~.. ~ ~~~ ~ i e1J~~U (]
I~iarche~fii GaaEc ort C:IAi S~III 111~cier ~uif
Harper & Row has decided, after
much consideration, to honor a request
from the Central Intclligencc Agency to
sec page proofs of Alfred \'~'. McCoy's
controversial September 13 book, "The
Politics of licroin in Southeast Asia,"
and to consider "factual" corrections
that the Cr1A may ofTer. The publisher,
however, has made no advance com-
mitment to accept any requested
changes.
!n his book, ,written +vith Cathleen l3.
Read, Mr. McCoy, a ?_6-year-old student
in Yale's l'h.ll. program in history, al-
Ief;cs that French, Vietnamese and U.S.
pcrsonnci have used the traffic in opium
and licroin in Southeast Asia for their
c/ ?ow?n ends,~and that the C:Ir\ and other
U.S. agencies have either acccptcd or
? have rC517011ded inadequately to the sit-
? uation..h4r. P1cCoy told Congressional
committees curly in June (including the
- foreign olierations subc'onunittce:, headed
- by Scn. 14'rlllarn Proxmire, D., \Vis., of
the Senate Appropriations Committee),
.~
that he had had more than 2~0 intervie+vs
about the drug traffic, including talks
with CIA and South Victnamcsc offi-
cials, and that President Thicu and
Premier Khiem ++?crc involved: he gave
details o` many allegations which appear
also in the book, 13. Brooks -Thomas,
harper vice-president and general coun-
sel, tells 1'I?V he and the editors have
worked ,closely ++ith Mr. McCoy on the
manuscript, have insisted on documen-
tation of all material points, and ha}?e
had outside experts read it. As a result,
Harper & Row is convinced that tfte
book is well-documented, scholarly and
deserves to be published.
.A chapter from the book, adapted,
appears in the July Harper's magazine.
The magazine has. received a letter from
the CIA's .executive director, W. E.
Colby, denying allegations involving the
CIA. I/arper's reportedly plans to pub-
lish the letter soon. Mr. Colby and an of-
ficer of Air, America (a contract airline
which does work for CIA in Southeast
Asia) also +vrote to the Washington Star,
disputing allegations picked up by a Star
columnist from Mr. McCoy's findings.
In these protests, and in its approach to
Harper ~. Row, the CIA is said to 'bc
departing sharply from its usual policy of
silence concerning criticism,
Harper ~: Row +sas approached early
in June, when a representative called
upon Cass Canfield, Sr., former chief
executive, now a senior editor four the
fine, and said the agency understood the
h4cCoy manuscript: contained serious al-
legations about CIA and other agcn-
cics-allegations that he said .might be
libelous to individuals or severely dam-
aging to the national interest. The repre-
sentative spoke also to \1. S. \Vyeth, Jr.,
executive editor of the trade department.
The harper officials said the manuscript
was not }'ct ready to be read; but that nc~
request mould be considered.
In weighing their decision, 1{arpcr 8r.
Row officials and editors- talked among
themselves and ++ith respected publishing
colleagues, including experts in the field
of the frccdum to read. On Junc 30, I+9 r.
Thomas +vrotc to the CIA asking the
agency to state its request, _+cith reasons
Ironically, in vices of ClA clTorts
refute the charges by Iv]r. McCoy and
others, ~personncl of C1A,.Statc. and the
Department of Defense completed in
February a report to the Cabinet Com-
mittcc on Narcotics Control ++-hick but-
Iresscd many of tI1C ChaCL,CS, according to
Seymour Iiersh in a front page tiea
York Times story, .luly 2~I. Mr. Ilersh
reviewed the harper-Clf\ discussions in
the Times of July 2?..
"fhc CIA's procedure with respect to
Mr. McCoy's boot: is in sharp contrast to
government action on an as-yct-
unwrittcn book, a nonfiction ~+ork about
the CIA, ++trich Victor L. lv4archcui~ is
under contract to prepare for I:nopf. ltr
that case, the Justice Department ob-
tained in April ?a restraining order to
prevent Mr. Marchetti from publishing
the proposed book, on the ground that it
would be likely to divulee curn:ntly clas-
siticd infor;nation in violation cC ;r se-
crec}' agreement that Mr. Marchetti irui
made as a CIA empk~}ee. 41 r. Mar.i~etti
worked for the CIA for I-# years ltnd
resigned in 1964. He then wrote a no~cl,
"The Rope llanccr" (Crasser), based on
his observations.
Judge Albert V. [3r}~an, Jr.,
triet Court, Alexandria, \'a.,
the restraining order, ruled
Tv4archctti's agrccntcnt ++ith
U. S. C)is-
in is,uing
that 11 r?
the C1A
came from Laurence R. Houston, gent/ First Amendment." The r\meriarn Civil
oral counsel of the CIA. Ile +vrotc that
the CIA +vas in no way questioning
Harper & Row's right to .publish the
"book, but said, "\4'c belie+?e +ve could
demonstrate to you that a considerable
number of Mr. iticCoy's claims" about
the ClA were "totally false" or "dis-
torted" or "based on ?uncouviricing evi-
dence."
Harper ~? Row then decided to let the
CIA sec the book-subject to the au-
thor's approval, without which, Harper
& Row president Winthrop Knowlton
told PGi~, the CIA's request u?oirld not be
acccptcd. The author finally accepted the
decision, to let the CIA look at page
proofs only, and to give a quick reply,
with Iiarpcr & Row reserving all its o,p-
tionsand rea8irming its right to publish. ?
"As head of the house oF_Ilarper &
Row," Mr. Knowlton told PW, "I am
sensitive, like all my colleagues in pub-
lishing, to the problem of censorship,
and if I felt this request involved censor
ship we would not be agreeing to it. In
view of the gravity of the allegations, ++e
'simply think this is the most responsible
L.ibcrtics Union, representing Mr.
lv]archctti, denies this and argues that the
author cannot in fact sign a+ra}? hi, First
Amendment rights. ~hhe Associution of
American 1'ublishcrs and the f\uthor:;
League have filed anrkves crrrirre briefs
supporting Mr. Marchetti in Further .
court proceedings.. (See P]I~, /lprii 24,
Junc S, June 12.)
? STATOTHR
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~'1'k~ ~~'E;~~~~~l;~~E~~?r~ Ir~~a~l'~w~s~c~~~>i;~
" ,~fIC'.T:..?.~rrrler?~ort,
- 1~'itlt enormous fanfare las4
1'?Sarch, tlrc J?hai c;overntnet)t.
anriounred it had hurnc(1 ?.G
tons of opiutti. The pyre tt?as
hailed iu 1v'ashiugton tu.ui
]3auglcok as evidence tlt:rt
Thailand at Iast was j;etti.nfr,
serious about cuttinj; eft the
flow of heroin to the U.S.
"'i'bis quantity of opium if
~?efincd into heroin," crowed
the State Department to Con?
!greys, "could have suppliccl
orrc?half the U.S. market for
one 7?ear." ':Cbe value of the
opitnn fed to the bonfire was
estimated in the lturtdreds of
milions.
Now, t.1te CIA. and other fed-
eral aj;crrcies have quietly in?
fartrted lirashin_c,ton that soirtc?
thing besides opium went up
in i.hat bonfire. The real story
is that Thailand r~.nd, indi-
rectIy ? the U.`;., were horn-
stvoggled? into bcIieving that I
?..G tops bf opium were burned,
when, in fact, most of it was
cheap fodder.
The tale of duplicity begins
in November, ]071, when the
drug?srnuggling remnants of
Nationalist Chinese troops
along the '.Choi-13tu?ma?I~aos
border heard the 'T'hai t;overn? ~
ment wanted to buy up ~ some
opiuttt for a public demonstra-
tion.
The aging Nationalist gener-
als ?rveren't born yesterday.
7lavirry lived by tlteir wits for
20 years, they saw art opportu-
!nity to make a killing,
Instead of Ioadin" raw
opium, they pushed 100 mules
with fodder, other plant mat-
ter, chemicals, acrd about 20
per cent opium.
Ttre caravans made tlteir
way down Pram the rEntote
border areas of Kachin and
Sltan to the northern drub
center at Chiang hTai tshere
t:he burning was to take place.
As orte mule after another
was unburdened, the 'Thais
paid off ttrc Chinese--itt part,
probably, with U.S. aid funds.
In all, the cagy dope peddler;s,
passed off five tons of opiant'
as 7fi tons anti pocketed more
than $2 t)tillion from the fan
castle hoax.
I lsi.ther throubh corruption
~ar stupidity, t.hc'i`hr,i officials
failed to test the huge tnoutt;is
of "ol:~itttit" before they soalcecl
it with t;asolinc and put it to
the tore}),
Only as the smell of burning
molasses wafted throu~~h
Chiang 11Iai did the'1'hais sus-
g
na
reduction of
pect tlrcy.had been had. Theu,ldcatlr from f'ragmcnts but ap-
! it was too late to cio anything
bttt cover up th:cir hoof.
And cover up they ciid. They
hastily recruited gangs of
~eoz?hers to bury tl~r~e "hundreds
of millions of dollars" wazK.h
of fodder and opiturt ashes.
~1VE;',~ ~~.~t'.,i
Ttvo years at~o, tine reported
tliat thousands of. American
lives could Iravc been saved in
Vietnam if the t'tr?tny ltad de?
velopcd adequate head and
body armor.
'i'Ire brass hats began a fu?
rious search for au answer to
our charPcs but found the po?
sition, in the words of. one gcn-
oral, "too weak. to merit a re?
btrttal."
L~isturbc(1 over our disclo-
sures, Sen. ChF,rlcs Pfc. 1ia-
thias (R1]d.), recluestcd a Gen-
eral Accounting Office investi-
gation. The GAO report, not
yet released to the public
,
backs us up coutpletcly.
Ciitinn a "prclaminary analy-
sis" of 2,'103 ltrzny and GL7 i41a-
rine casualties, the report de?
clares that "the Army's nylon
vest did not significantly re-
duce casualties ar deaths" and
that "the helmet, used by both
the Army acrd i1!l~arine Corps,
gives mar
i
l
? STATOTHR?
I pai?ent.ly no reduction lrt c?tra-
ua.lt.ics."
i\Tot only clid the armor pro-'
vide insufficient j:,r?olcction,
t,e reported (n?igurally," but.'
n)any lives had been lost 1)e?`
cause the GIs hadn't been
trained to wear. their Cattle
gear.
l]ili~tary autharit:ics, in. re-
~l)ollye, ytea(1faSLly illSlSlE'd tlt(:
helmet and vest ~~.~ere regu-
larly worn. I~ut the C;.10, bas.
lug its conclusion ott the
7u?nty's Owlr research, said:
"If the Army vest was tvortr,.
al)out a 40 per cent decrease
in wottnds in pI'Oteete(1 areas
could he anticipated r,,hainst
all fra~rtnentation weapons
and about a 55 per cent de?
crease ai;ahtst the lI??t; hand
grenade....
"Under identical ]Meat; hu-
midity, wind and cloud?covet?
conditions, the itlarine Corps
use of vests averaged '73.7 per
cent while Army usa~n aver-
aged otilj~ IG.1 per. cent.
"1Vc believe the Arnr~''s low
fuse of the vest in Vieinant re?
laces to a lack of training and
euilihasis on using it during
combat. Iti couirast, the i.1a?
rive Corps (foes use the vest
in training and puts emphasis
on its use dttrin~ combat."
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e~?~~Re4ea~@'-2001/03/04 : C~pf{@1
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EXAMIIJr~R ~ C`itiONICLE
" , S - 640, 004
~4UL 3 019' ---
~~~~~- N
3' ~~?AS the harvest land
.J~. far raw opium, the infa-
'-moos "golden h?iangle." In'
the corner embracing north-
eastern L u r m a, northern
Thailand and northern Laos
-about 1000 tons of ra5v opium
was produced, about 70 per
cent of the world's supply.
- from there it eventually
` iound its way to the Amert-
~'ean market, but that source
of heroin, according to Ad-
ministration officials, haci
been turned off.
?"VVe thitt3t all t.lte coun-
tries are caoperaling with us
and we are quite satisfied
with that cooperation," said
Secretary of State Nilliarn
P. it.ogers ta.a Senate sub-
committee last 11tay.
Ott the Defetisivc
`'~ .How much cooperation,
however, was subject to dis-
~ -pute, 5vith the Central Intel-
ligence Agency and eventa-
- ~ ally the Administration on
'. 'the defensive last week.
actively involved themselves
in the trade.
The CIA lattnched a big ef-
fort to refute t.~e charges,
calling them t1175var1'allted,
unproven and fallacious, and
managed to- persuade the
publishers of the expose,
Ilarper ~~: RoSV, to permit the
CIA to review the rllanu-
sct?ipt prior to publieatioli.
~i'he boat: ltas been based
on More than 250 interview-
ers, some . of them, McCoy
said, with past and present
officials of the CIA.
H e said that top-1e5re1
South Vietnamese officials;
~~7~ ~,~'~ WdS
aC~ S~~ o~C~PEJ~
tr~~$e~Ecia~~l
inchtcling President Nguyen
Van Thicu and I'remicr
..Part of the official worry Tran Van IChiem, were in-
originated 5vith the soon-to- vowed. -
b e- p tt b u s h e d hook by The CIA begalt all tll]liStial
A I f r e d tiv. McCo}?, a" 2G- public. defense by sending
year-old Yale grachtate stn- two. letters fQr publication to
dent who spent 18 months in- the z this matter s~aa published i>s, ~'he New YorDc '~ix~es on :fu1y ~~.
According to this story, CIA 'asked '~ have an opportunity to review the book
becaus? it b8lieved that i:t contained staicoraontfa concerning the .agency that s~e:re
to~11y false and without foundation. The CIA lette:e to HaY.par and Ross s~~ted:
"It is our ba3lieSE that no r+iwputak~l~a publishing house wrould svish ~ publisix such ells-~
gati.an$ without"being assured that the supporting evidence was valid.'
~~ ` B.`>3zooka Thomas, vice presidcnt~and general counsel of Harper and Rc~w, said:
~Ve ro net submitting to censorship or anything like that. ti~e're taking a respontsl.ble
uaicZdlo 'po>3iti.c-n. I dust believe that the CIA :should have the chance to review it." .
Yam t3ux? 4hat it is known at P~BC that manuscripts being considered by
reputable publishers are always submitted to exports tar review prior to publication?
Oar of~ th?-big r~istakas McGraw-Hill made with rho Irving book an Reward iJughes was
that it did trot take the prrrcautian oil having the book read by people who wore
sufticimntly knowledgeable about the subject of t11e book. of course, a publisher
iffi trcm ~:o accept or rce~ect the auggastiana ;jade by the reviecrers. EaT?a think it
would ?aa irrc~sponsiblm for a publisher to ignore warl7ings that a manuscript containr~d
amriouta inaccuracies and to rattise ice permit those able to paint out the. inaccuracies
to.havQ zan opportunity to do ao prior to publication. Hy taking every precaution
to ~.naura~~ accuracy, the publiahnr h?lps establish his a~n credibility, thr, credib3.lifi~y
of thc~ book, sand hey avoids increasing rho amount of mi>3inform;ation that circulates
. i.n public r,.hann~al$. Wo do not think this hail zrny cruu~nection with cons3arslnip, which
ca.~anotar~ lcsgal corupulsion to prc3vtsnt statements from being publish~:d. since CIA hus
i,~o ~.cgal p~c~1c to prevent Harper and ~~or~r #raz~ publishing anything. t~r? UF;rley's oharga
mat ~"~hd publisher Y-ad subr~ittod to ~priar censorship aee~as to be clearly f~-lso?
Approved For Release 200'/03/O~I~~t~~Op?1~~~Q~1 ev~~~d
A ascend satatatne~nt than ws~
i,~iaccuratQ ~ygo~tiaztt to rho v~,a?+~ar was the f`ollaw~.rbf1 ~
pEFICEIiS:
Dr, f rands G, Wilson, !'resident/Alhhons 1. liar.kl, Vice President
Abraham -I~Kalish, Executive Sec~refary/John K. McLean; Treasure
David S. Llchtenslein, General Counsel
The Hon. Dean Achesont/Hurray Baron/ ambassador Llbridge Durl
Dr. William Yandell Elliott/Harris L. Ernst/Eugene Lyons/Dr. Charles Burton Harsh:rll
R. Adm. William C. Mott, USN (ReL)/Edgar Ansel Mowrer
. STATOTH R
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-2- ;
"And there wais the Thai government's wolf, publicized extravagansa in
'ilse golden triangl?--then burning of 26 tons o1' opium. It came just after U. S.
Cangressaman Lester Wolff accused the Thais of inadequate drug control. A
skeptic would see it as strong public relations covering up weak law enforceulont."
t:Ttzile you new describe this event as "wcl~. publicixed," AIM has a com-
pl.aint that this event was almost totally ignored by American TV and newspapers.
aid tdHC News report the opius~'destruction to its viewers in March? Do you have
any evidence .that this was we21 publicized by the American news media?
If.the amount of opium destroyed was in fact 26 tons, this would rate
as one of the largest seizures of this drug in hi:~tory. The U. S. street value
of 26 tons of opium converted into heroin would bs~ about 51.3 billion. Ta pass
such a seizure off as "weak law enforcement" whil~a making much of the seizure
in New York of ~ only 260 lbs. of he:coin in the Jaguar automobile
secs very 'odd.
i~ third flaw in the program was the failure to mention anything about
td~e involver;~nt of cosnnunist countries in drug pr~xluction and traffic. since
the program purported to be a presentation of tihe facts about opium and heroin
procuction and traffic .in the Far East, the oraiss.ion of any mention of opium
ia~:ooiuction in Com~tuzist China sL-ood out as a grav~a deficiency. Fact Sheet 2 of
the Bureau of Narcotics and Dangerous Drugs stats:ss
In the Far East, opium is cultivated 3n vast quantities in tl~e Yunnan
' ~~mvince of China and the,~Shan and Kachin Staten in Surma. Although much is
c:c~ltisu~d by opium smokers in the region, considerable amounts of thQ drug ;
sir=d their wav to the Unittod States.
1962, even though North Vietnam was denyir:q that it was producing.opium.
The Yteport of the Smventeenth Session 11962? of the United Nations' Commis-
ion on Narcotic Drugs included specific details about the production of opium
in ~'unnan Province and its being transported to Burc-a. Former BNDD Corznissioner,
I?ar~.y Anslinger, is on record in testimony given the U. N. Commission on Narcotic
Drugs with detailed inforcnati.on about the involvement of.the Chinese Cou~unists
in thn illicit opium traffic. In addition, there is the statement of the Egyptian
new~apaper, P;1 Ahram, that Premier Chou En-Lai told Nasser in' 1965 that China was
planting the best kinds a'f opium especially for the American troops in Vietnam.
Chou reportedly said that they would seek to bring about the demoralization of
the American forces with drugs. In a speech on September 21, 1961, Congresr~man
Francis E. Walter charged that the Chinese were 'guilty of using "dope warfare"
.against American troops in the Korean War. It was reported that an opium processing
-plant was found by American troops .in Pyongyang, Korea.
The Washington Intelligence Report fox March-April 1972 alas points out
.that North Vietnam is Producing opium. A North ~'fetnamesQ defector, Nguyen N~oc trat.
a journalist formerly with the Hanoi newspaper, Tien Phong, described huge poppy
fields that ho had seen in Ha Giang, Son La, Lai^Chau and Cao Bang provinces in
North Vietnam. He said half of the raw opium was sent to China for pzocesssing anti
the root of it was loade3d on Soviet ships. According to this Report, The, Soviet
Union of2'icially reported importing 29,000 lbs. c+f. opium from North Vi?tnam in
Approved ,For Release "2001/0~/04:CIA-RDP80-0160.1 8001000,060001-7
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r - 3
It is not necessary to go into all of the evideance of involvement by both
Cora~nunist China and North Vietnam in the opium and heroin traffic. You ca~~ surely
find r~ gresat deal of information on this subject if you wish to investigate. it.
xn addition to the issue of The Washington Intcalligencoi Report mentiancd above,
you may want to refer to the Congressiohal Record of March 29, x.972. Cong:ceasrian
John Ashbrook had a long insertion in the Raca~d beginning on page H 2.84E3 on they tale
of~Ca~aunist China in the drug tra~Eic.
It seems that the cvi~ence of Coamnunist complicity is strong enoug'rz to
cast serious doubt an the accuracy of the remark that your documentary attributed
to~aan unidentified anthropologist to the effect that the communists wer? "had for
,the opium lousiness." On the contrary, th?y would appe~ir to be very much involvcrd.
in it.
R few days before you aired your program which was clearly designed to
CO12VCy thG: impression that the government ~4~C Thailand was not being cooper~~tive
in cracking dcrrre on opium traffickers, I noted a report in the Washington east
to the of,rcect that Thai agents. had seized some 5232 million worth of dangerous
drugs .in two raids on July 23 and July 24 at Mai Sai. This seizures cit~rarfs the
saizures wade in this country over long periods of timer. Yet you. gave no credit
to the Thai'govornurent for this outstanding success. -~ .
One radditional small point. In putting Fred S>anfman on the air to maJce
song unsulastantiated charges, you identified hi~n only as a fozraer IVIS wor;cer in
Vietn~n. I prasu~-e; that this is the starve Fred f~ranfmy 7e
rres
;
e
nese
riiarketin~ T,uild-up Sifted
~~~~th~aSt Asia. It was inane-i
diately assailed by Mr, Krogh.' Government intelligence
Asked in an interview today ~g;encies recently set ttp; a joint
analysis, Mr, xrogn acxnvw- 4Va11, to stem tnc grow7ng quent communications between
Strategic Intelligence Otfice of, )edged that "from what I've smuggling through United Chinese heroin traffickers in
the Bureau of Narcotics and ilearned so far, there has 'to ;late and Canadian docjc areas., IQew Yor}:, Seattle, San Fran-
Dangerous 17rugs, further be a strong likelihood" that or- irJithin a mar]th of the I~ro- Cisco, Portland and Vancouver,
showed that narcotics-control ganizcd crime is involved in - -- -- -- --_~ ~ suggesting that an extensive
personnel was beginning to ac- the flow of heroin from South-; gram's initiation on A ~rii 7, wholesale marketing rneclta-
cumulate evidence linking or- east Asia, but he added that' the report saint, eight ethnte nism exists or. is being estab-
ganized crime to the Southeast the evidence was not yet con-I Chinese were arrested, most of fished."
Asian dntg market^-4 -` a cltrsive. 1 them carrying one to fotu~ In recent years, United
Times an Monday, concluded] lie empasized that the Ad- One seizure, on April 11, re-
that there was "no. prospect"~ ministration set up its interna- salted in the arrest of seven
of halt}ng fhc drag flaw from ;tionah narcotics program only !Chinese se~unen carrying; a to-
Southeast Asia into the United ' 18 months ago. Because of this, ',tag of 11 pounds of heroin, the
States. 1'17is Cabinet-]eve} study he ~ said, it would be "impos- ~ bureau's report said. It added
was later discounted by ihe~?Bible" to estimate accurately ithat "further information de?
raga who con]missioned it-Epil~ which area in Llte world was veloped that this I1 pounds
M. Iirogh Jr., a special White responsible for which percen- was part of a Ip0-pou~]d ship-
Ilouse aide for narcotics mat- loge of the heroin reaching the ri7ent whirl] originated n Wang-
lers. United States. "Statistics at kok and was evidently delivered
h4r. Krogh said "these has this time arc so fhtid," he said. by a European diplon7at as-
been substantial progress" in Other officials said that signed to Thailat7d. Sensitive
reducing the ,influx of drugs content of the bureau's analysis sources have revealed that
fron] Southeast Asia. had been approved by that 'more shipments, sponsored by
The Narcotics Bureau report agency's over-all intelligence other groups, are on til7c way;
'.stated that "the traffic at pros- board? before its dissemination ;arrests are anticipated in the
'eat relatively unorganized, but irisidc the Government. near future."
hoc definite potential for ex- , The Narcotics Bureau, a Jus- Significantly, the report noted
pansion as a replacement fori~,tice I7epartn]crtt agency, indi- that "the smuggling activities
Turkish-Frencl] heroin." rated in its study, made avail- of Chinese seamen iimply a
Officials from the Central In-Fable today, U]at much of the loose but rather extensive ar-
telligenceAgency, State Depart-i ~growit]g amount of heroin from rangement between the seamen
meat, Narcotics Bureau and De-~
fense IJepartment "are present=
ly reviewing tl7e international
trade," the report a;~ded, "with
particular focus on Southeast
Asia as an alternate to the Mid-
dle x ast as a source of supply."
tuhite Douse 'T'hinks Otherwise
of the total Untted States an-
nual supply.
Last month Nelson G. Gross,
the State Department's senior
adviser for international narco-
tics matters, told ?a Congres-
sional hearing that "the over-
whelming majority of the heroin
coming to t17e United States
originates in the Middle East
and is processed in l:uropcan
laboratories befot?e being smug-
gled into our, country. We esti-
mate tI7a probably 5 per cent
,
and certainly~~~t~~y] ~10i h1 ~ `l~s3~~~g ql~~~f " ~f
per cent of t. t n r., e 7 t o 7 e 7
flowing into .the United States United States and Canada,"
men 17ave repeatedly main-; i' I~.trther~intelligence may "re-
tained publicly, m oppos}lion to ~.eai more precise}y the role of
statements of critics, that heroin,'Far Fast heroin in the United
smugled from Southeast Asia!States," the document said,
makes up only a small fraction'iima.t-j
ed chat; althoui it lhcre arc+,
about Gb,OQO }latiehts in f50
methadone treattneltt lircgrams;
?- federal, state, lot:,] and;
}xriv^te -- in ih^ United 5t.ates,!
as many as ?O,000 r~lore arLl on
Scrti?tce.
A a5-million fund was rc- ;
quested to apprc:?:imatcly dou- ~.
ble the ]iresent rese~rctx activi-i
tins of the Eurcalt of N2rco-i
tics and Dan, erotns t~rugs, they
Utlreau of c.u :toms and tile;
J:l;ciculturc Ucpartntent. j
CIA-RDP80-016018001000060001-7
WASHINGTON >?osT STATOTHR
Approved For Release 200~/$3,~4 ~~~~A-RDP80-01
TV .~~zgl~liglits
`Chronolog'
Tonight the entire
"Chronolog" program (fl:30
p.m., Channel 4) will he de-
voted to an expanded ver-
sion of an earlier story on
Southeast Asian heroin. Pro-
duced by Thoznas Tomizawa,
the earlier report spot-
lighted the hill country
where Burma, Laos and
Thailand meet as the focal
point of a growing debate
over the narcotics trade.
The expanded report will
include Garrick Utley's in-
terview with Alfred ililou W1tIlOUt increasing
the existing burden on taxpayers. The rec-
entte shifting proposal can achieve this ob-
jectlve in the planner described below, Y,ase@
on t.tle Tax I~'oundatiwl's estimate that the
Federal governuicnt wlll collect 593.7 billion
in personal iuconie taxes in PY 1972.
1. P'ederai personal income tax rates arc
reduced by 5.34 per cent thereby reducing
? the Iiersonai income tax yield by S5. Uillion.
This will reciuco Lhc total Fcrleral personal
income tax colle.ctfons to 88II.7 billion na-
tionally.
2. In addition to the personal income taxes
? which it is to collect. for.the federal govcrn-
meat, the rRS 15 dh?ccted t.o coneot on behalf
of each state luuless such state otherwise
ltt which in
directs) an acidltional hlcreme
the aggregate would result in tllC ctistribu- after year that the war is going well and
tion tcz the states of g5 billion. Based on i,his Cach day we see llo~t~ weak and helllles.s
111ttstratio7t, tills would n1Can that Il3.S WOt11C1 Otll' allies al'C lvitl]Otlt OUl' Illllltary pi'0?
collect an increment of 5.6 per cent abovC the tecaion so we have also been told tha t
amount collected on behalf of the Federal the battle ag'aillst dl'Ug5 11aS the active
government, and sincere cooperation of our Soutk~east
3. Assuming no state speci~icnily directs Asian allies. Taut it Holy appears from the
otherwise, thr. collection of this ~.G per Cent
increntmlt aUove the personal income taxes `0videnCC presented t0 my Stibcon]mittee
collected by the 1I25 for the purposes of the on Fol'eign Uperatio]ls and from a series
T'edcral government would result in a dis- of articles in the New York Times by
trlbution to the states of ~5 billion? Seymotu Tiersh, that our allies in South-
' 4. Under this proposal, an individual state east Asia are harboring a major and
would be aU1e to authorize the IIZS to collect @.rowing source of drugs which addict our
Inore cr Iess than the 5.c per cent iucrelnent servieeir.en anal which are sold to ow'
front its residents, 't'hus a state which elected
be- Youth at home. I believe that the drug
It
s
not to have IRS Collect wily taxes on
111L1f could, 1n effect, provlcie a 5.34 per cent problem alone is sttflicient reason to ?,et of iiarcotias in Southeast Asia has taken
tax cut for its residents. On the other hand, out of the tear and out of Southeast Asia. ti backseat to the administration's war
another state which is particularly hard Ax]d now is the time to do it. 't'he tear in policy.
pressed for rcvettue could elect to authorise Southeast Asia is?not tvortli a single drub
the IRS t0 CO1lCCt nl OTe than tl1C 111 CTCment addicted Aln,erleal]. WAR PCI,ICIES NOT LVORTII SLIFFEIIING ANU
a5 all alternative to increasing its sales tax, G"r1t1CS Of Ollr 111VOlvemellt 111 SOtlth- ~ nROIiPN LIVI'.S
for example. c-ast ?Asia have often pointed to t:he ad= Mr. President, I mast reject this kind
r. Advantages of the "Revenue Shirting" verse don]estic consequences of our. mill- of policy and I shudder at the suffel'ing
Alternative: tary activities there. Uur economy con- and broken lives it has brought about.
1. Because the states have the' power to ~ '
direct Ins to increase, reduce or clhninate times to suilel' from life inflation first We n1aY have as many as ,60,000 young
Mlle amount to be collected on their behalf, brought oil by the war. T:ssential pro- Americans who aro addicted to hez'oin,
they retain fi~pprovieldt'FolraRelteasea2001/03%04: CIIA-RDP80a101601~R001000060001 i~ecl vetel'-
tioutlleast Asia are not engaged n] diu?,
aro paid to some, often '7o',v tax effort
states at the cxlJensc of life SitorC Urban, in- tl'ail'leklllg. Irideccl, the GOVCl'rili]CritS
dustriauzca states which are cn17?ently ex- of Laos, Th1ti]and, and Vietnam have
NARCOTICS AND TIIE ~TiTAR IN
SUU'i'IIFAS'>,. ASIA
Mr. PROXMII~,E. ICI;[o7Il1T opium in 'J.'haiiuncl, I49r. Grass 't'urkey forn:crly q~racluceci~
Special to ThQ ti2ty Yo;'s Ttmc:s calicd the study, written ~ in about 7.00 tons of opium
r
h i
,
mtc
1VA51II\GTOI'7, Tuly ~?;i __. i'ehruary, "cam},Ielely out of of w}rich ~~.as etported ille,~,n Southeast
Asia, purchase imxnu~uty, and even
subvert g~ove~rnment channels of
transportation to get their drugs out
of the countries involved and on their
': way to Snarliets abroatY, chiefly in
the United States, .
Mr. Steele and two other com-
gressmen, Lester L. Wolff of New
York and Morgan F. Murphy of
Illinois, are sponsors of a bill that
-would cut off amore than $100 million
in paid to Thailand unless the Thai
cooperated better in anti-drug ac-
tivities.
out if we put too much pressure on
them."
Corruption in government i s
pervasive in Southeast Asia to a
degree that even tkze most cynical
American finds hard! to appreciate.
Before the withdrt?~wal of ground
troops made l.self felt in t:13e South '
Vietnamese econaz~iy, the b l a c k
market in Saigon cattld supply almost:
every American luxury item (by local.
definitions) small enough to be ~car-
ried by one or two men-all stolen or
procured by bribery from American
sources and all involving some degree
of corrupt protection..
THE A'.CTACI~ on the illicit drug
traffic must be pushed ~vit"n all ~ our
resources. There is no need to
rehearse the reasons.
Ourmost potent resource izi
Southeast Asia is urtoney. The law
sponsored. by 1V1r. Steele and h.is col-
Ieagues (it has been. incorporated in-
to the Forei ,distance act now
pendingj~ should' b~o passed and en-
forced.
Acid there must also be occasional
opportrtnities for Ltnilateral action
against which our Southeast Asian
allies could hardly protest in public.
If a United States Navy destroyer
were to stop and :Search Thai
trawlers (many of 'which apparently
carry cargoes of ltaroin.) and d~e~stroy
an the spot those found with illicit
cargoes, i~t would 'be at least unore
difficult for the d>ug merchants to
get their goods out ~o-f their own coun-
try. And how could the Thai govern-
nient protest such a laudable action?
Such action is xeco~mmended in
the newly leaked report. The t?eport
a.s addressed Ito t)ie Cabinet Com-
nuttee on International Narcotics
Control. Now that its contents have
been anode public, perhaps fnere will
be two .beneficial results:
First, that the United States
demonstrate a sincere toughness in
dealing on this subject with its allies
STATOTHR
kt 4:Utt~'1CS3tur1ctl atcuiiais ?~..~.~ .. _ --- --
r~ s of s uc o- Ancl second, that the ad-
p`pp~~~~n~ili~~i~ ~iQ1.4 :r-~#~~8i0 ~n~~~n?'1~~Td60001-7
that t-he administration is afraid us with protestations of g o oct
~thev''A tell .us to take our air bases cooperation and results. ~.
~:
~~? Wn1rFf l~ct n,nnth testified at
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OMAN11, Idr~isii.,
~~'ORL1? Ii~RAI,b
M - 125,376
S -- 273, 394 .
- ? ?-:...
I
~ , ~~
-Rcuta, mews Anencr. One passage said: "The
1~ ashington-The State most basic problem, and the
Department Monday sought tc one that unfortunately apiiears
play clown a report that least likely of any early sofa- i
declared it could see no lien; is the corruption, col-
;'prospect of stemming nar_ 'fusion and indifference at
some places in some govcrti-
~~~rntics smuggling by sea and meats, particularly 'fhailancl ~
;fair from Southeast Asia, and ;oath Vicfnam, that
/ t; Spokesman Charles Bray precludes more effective sup- ?~
J :emphasized that prohress had pression of (clruh) traffic by
;~~~lieen made on uarcolics tl.e government on whose ter-
'smugf;ling since the report ritory it takes place.." J
`was compiled in February. The repvrt was In sharp
He described the document contradiction to the ad- ~
,as. necessarily more ministration, which has ~
retrospective than prospective stressed t1.S. successes in
yin outlook and said it showed comhatting the n a r c: o t i c s
.'how some officials viewed the trade.
~tarug~ situation. ~ _ --
. 1'he report, which was .
`,disclosed in 1lfionday's 1'~ew
York 7?imes', was prepared by \/
'officials of the.. Cen>ral,:tified about]
I3e said the report., compiled Ile called the report "more 3_.000 narcotics pushers.
by officiltls with ?he Central) retrospective than prospect-
Intelligence, Agency, State De- ~ive" in outlook, and was not
partmeut and Defense Depart- l a State Department report,
ment ,.was submitted last I'eb-i
ruary; ?"but in the last four ~ j but "a report to the Slate
months thoee has been sub- i I Department.
,,,~?,,;~, ~?,?~,??,,,,~? 11leana~hile, the Bureau of '
"A few hours later, hOR'PV er,~~y~~~~~"`? aa,u uaii6ci~us
Sen. 1'ance Hartke (D-Ind.) in-` Drugs (D1TDD) announced that
troduced alast-minute amend:I U.S. ahenis and Thai police
mint to the Foreign Assistance ;Sized about $230 million worth
Act to forbid farther economic 'of opium, morphine and her-
-and military aid to Thailand, oin in two days of raids. in
,~ .Northern Thailand.
because of its major role in
.the international narcotics traf. According to D\DD director
tic, ~~ JoliIi Ingersoll, the raids net-
The Senate defeated the ted nearly three tans of oii-
amendment last riiuht on a ~ ium, along with guns and other
vote of 67 to 22. equipment.
I3~artke criticized Pres~~lent I Yesterday morning, federal
Arixon for failing to withdraw' drub law enforcers told Presi-~~
aid to Thailand, "despite a I dent Nixoti, that the Bureau of ~
provis`on of the Fareign As- ;Customs anti the D~TI)ll ]zad
sistan~~e Act that allows the t~ haud~in removing mare than
'President to suspend aid to 470,000 pounds of narcotics
any nation iliat doesn't take ; "from world illicit traffic" in
action" ~:~ halt black market 'F'iscal Ycar 1972. Phis, they
narcotics exports. said in their year-end report,
The President's. inaction, he more than doubled the confis-
said, is "in the face of hard ev- i catcd poundage over 1971.
idence that 'T'hailand serves as lllarijuana constituted abaut
the conduit: f.or the trans-ship- ~ 94 pez? teat of the seized n.ar-
ment of opium uroduced in; cotics. '1'he administratiozi said
Southeast Asia, the largest op-~arrests of drug dealers rose
ium?growing area iii the from 12,497 last yearao mare
world:" ? - than 16,000 during Fiscal 1~rL.j
Recently published accounts It was reported that the num-
of the pessimistic multi-agency ber of addicts scekinb metha-
study of Southeast Asian drug , clone treatment has also in-
traffic said governments 'of. ~ creased dramatically, though
the regioxi were unable and no numbers were cited.
soitietiines unwilling to halt] Assistant Treasury Secre-
the .flow of opium and other Lary Eugene T. Rossides a-e-
narcotics: ~ ported that "tho President is
]3ut Kt?ogh argued that the 'pleased that we're ou the of-'
tide. "ran be stemmad in Pensive now, whereas three
Southeast Asia." IIe cited in- years ago ~we were on the de-~
creased seizures of heroin fensive:'
"and other substances" in the ~ '
region and. said the problem .
was being,approachcd in an -
atmospl~re o rOVe~1~OPe' '
~L1011." pp ~elease 2001/03/04 :CIA-RQ~$0-01601 8001000060001:=:~
" STATOTHR
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NEW HAVI~N, ~C'ONN.
JOURNA JUJU`"~E;EI~~
I
M -~ 32, 217
A Yale University graduate
student's forthcarnhzg taook on
', heroin traffic in Southeast Asia,
is reportedly being reviewed by'
? ~tlze Central Inte}ligence Agency
Alfred W. I~IcCoy, 26, of 29
Lake Place, a Ph.D. student in
+Southeast. Asian studies, spent
18 months in Asia vzve'stigating
narcotics operations and recent-
ay'tcstified before the Senate
.Appropriations Subconvmit.tc~
on I'aeeigtz ltid. '
'. He testified at the time. that
aircraft chartered by the CIA
"and the Agency for Internation-
al Development "have been
' transporting opium harvested
Eby .the agency's tribal rnerce-
'fhe CIA, with the permission
of harper & Itow, the book's
'publishers, is reviewing l h e
the Golden 't'riangle-nort.heast-
ern I3urana, northern Thailand
and northern Laos--produce 70
per cant of the world's supply
of raw opium and that much of
it is being funneled to addicts
on New York streets.
"After pouring billiozis of dol-
lars into Southeast Asia for'
over 20 years, the United States
has acquired enormous power
in the region. And it has used
this power to create new na-
narieson a regular basis."
t~ , ~..__ ,. , ... , . _____
?~ AC the time of his Congres-
sional testimony, 1V4cCoy .was
described as a "very thorough
-scholar .and not the antiwar
type" by a senate staff mem-
ber. .
f In the magazine article,
1 cCoy wrote that during the
art several months of I970,
ore American soldiers were
. vacuated "tnas casualites
ram South Vietnam for. durg-
dated reasons than far reasons
jawing to do with tear wounds."
' IIe also wrote that farmers ir,
individual CIA men have abet-
ted the op ium traffic."
partedly rarri:~cl opium a n d
manuscript of 11IcCoy's hook
`vith the intention of clemon-
strat.ing that some of the book's
claims hre "totally false and
without foundation," according
ko a recent article in 'fhe New
York Times. '
McCoy testified in two Con-
gressional appearances in June
that the maternal in the forth-
cotning book, "'fhe Politics of
heroin in Southeast Asia", was
based on more than 2`A inter-
views, some with CIA officials.
In a chapter of the book print-
ed in the current issue of Harp-
er's I,lagazine, 14IcCay charged
that 'American involvr~tacnt
'-has gone beyond coincidental,
;complicit,Y; emt~assies It a v e
'consciously covered up involve-
ment by client governm~ts,
~IA contract airlines have re-
bons were non-existed, to hard
pick prime ministers, to topple
goverrunents and to crush revo-
luti~ns.
"Unless something is done to
change America's policies ~ Ord
priorities in Southeast Asia, the
drug crisis will c.'~eepen and the
'heroin plague trill continue to
spread," ItlcCoywrote.
- ivlcCoy could nut tie reac}zed
Sunday night for comment.
f{A'I IIIIYN IjOLI~IiO[t5'
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? STATOTH R
July ,2.~p.#~1'~ed For Rele~~'~t~x.6G8A~1~~'~t0010
only delaying the passage of this bill
after the long and weary course it ]Ias
taken. Vde arc only jeopardizing the bill
itself:
Senatoz?s have now gone on rcrord as
expressing their cotzcern about tZte pris-
oners war. IIovrever, that action is not
galllg t0 b2'Illg tkle p1'1SanCI'S of war home
1 minute sooner, It is not going to ac-
complish this perfectly desirable pur-
pose, upon which eve a.il agree. It is not
going to have any efiect except t,o delay
the bill, tie it up in the other body, tic it
up in conference, and possibly cause it
to fail.
Tlzerefoz?e, a motion to stripe wottld be
licrfectly izI order.
)VIr. S`I')~NNIS. Mr. President, I yield 3
minutes to the Senatol? from South
Carolina.
'The P1Z1~SI7JFI.7Cz OT`FICIR. The Sen-
at01' from. SaUtll Car'ohlra 1S I'CCa?Y11Ze(1
for 3 minutes.
Mr.'TIIUII,MON7]. A~Lr. President, I rise
to support the amendment of t:1te distin-
guished Scnataz' from 3ilississippi.
Ir1r. Pz~esici0ut, the U.S. Government is
conamiti~ed 'to briei,IC1:It. !.'lte Sen-
ator has I2 minutes renaainuig.
Mr. CHLJIZCIi, llh?. President, I yield
4 minutes to the Senator from California.
Tho PILFSIDINI_= OI~'FICLl1Z. The. Sen-
ator from C1Llifornia is reco~;trized.
Mr. CRA NS'TON. 11Zr. President, every
day someone tells tls zzety stories about
what is happening in Indochina, and
every other day someone else denies
t?hcm. We are being asked to vote funds
for the war, but vre have noway of knot;~-
ing whether t?he si;ories are i.rttc. I~'ur
0vidence we see nothing but a Puttch-
and-Judy show of charges and couzztcr-
Cl1ar'~CS.
Igor example, tl.zc Swedish AnzUassaclor
to North Victna-m, JOau-Christoplt0
Oberg, chal?g;ed in June that the United
States-has ~i0liberatcly bombed dikes in
Nort11 Victnatn. A correspondent? from
ngence Prance-PressO, Jean 'I'haraval,
recently z.nade this same accu~:a.tion. Iotl.t
n:en based i;heir r0ports an iirstltand ob-
servatiorl. Ilanoi claims that b.ttveen
April 10 anti JwtO 10, U.`r. r,?arplaues
clroppecl GG5 bombs i.n GS difiererlt raids
against dikes.
)v7:r. l-'resid.ent, r