U.S. AID FOR THE DRUG TRAFFICKERS?

Document Type: 
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
File: 
AttachmentSize
PDF icon CIA-RDP80-01601R001000060001-7.pdf11.4 MB
Body: 
STATOTHR Approl ~~ f~Rea~~~20011~3/04 : CIA-RDP80-0 COtIRTI:ft ~ ~J~ OURNAT S - ~3S?,~U3 ~ - { . 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 'ficials, who argue that it is out of date and "that "substantial progress" has been made in the past four months.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? Approved For Release 2001/03/04 :CIA-RDP80-01 X01 R001~000060001"-7 STATOTHR STATOTI~F~ T ~~- Jtn,x i ~7~ Approved, Fb~l- F~I~~s~2001/03/04 : CIA-RDP80-016 +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 Approved For Release 2001/03/04 : CIA-RDP80-016018001000060001-7 W9:SH~NGTON POST Approved For Release 2001i?0~/~~~ Q~Q-RDP80-01601 RO .. ~'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." . Approved For Release 2001/03/04 :CIA-RDP80-016018001000060001-7 App(r e~?~~Re4ea~@'-2001/03/04 : C~pf{@1 ~ E - 204,749 ? 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 Approved For Release 2001/03/04 :CIA-RDP80-016018001000060001-7 -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 Approved For Release 2001/03/04 :CIA-RDP80-01601 R0010000600;~1-7 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 STATOTHR Approved For Release 2001/03/04 :CIA-RDP80-01601 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 Approved For Release 2001/03/0,4 : GIA-RDP80-01 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' Approved For Release 2001/03/04 : CIA-~tDP80-016018001000060001-7.~ ? 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