NARCOTICS AND SOUTHEAST ASIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP74B00415R000400050007-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: June 10, 2005
• Sequence Number: 7
• Publication Date: June 28, 1972
• Content Type: OPEN

3'6272 Approved For Release SU(%6 f f r0 IA- 2 L7e Q 15F a( 050007-2
A mass of legislation has been enacted
by the Democratic Congress, but most of
it does not carry the political sex appeal
of these principle issues, The President
is not likely to overlook the opportunity
to expose these shortcomings.
Democrats have a particular talent for
killing each other off, Party infighting
does not help the Nation or the Demo-
cratic Party, The writing of a platform
may expose more weaknesses than the
party can overcome regardless of candi-
date, and George Wallace and others are
attempting to produce a party platform
which is more acceptable to the. Ameri-
can public than the one now proposed.
Yet, efforts to start pulling responsible
party factions together may, have come
too late to be effective. One thing is cer-
tain, the Democratic Party has serious
problems ahead for November. America
wants responsible programs and respon-
sible candidates which it can confidently
support for a better tomorrow. Let us
hope it is not too late to repair the dam-
age within the Democratic Party. Amer-
ica needs a strong Democratic Party un-
der sound leadership.
AN OLD-FASHIONED PATRIOT
SPEAKS OUT
(Mr. HALL asked and was given per-
mission to extend his remarks at this
point in the RECORD and to Include ex-,
traneous matter.)
Mr. HALL. Mr. Speaker, the Missouri
National Guard Association, the non-
military forum of over 1,700 active offi-
cers, retired officers, active and retired
enlisted men of the Missouri National.
Guard recently held its silver anniver-
sary conference in St. Louis, Mo. At that
ceremony Col. Oliver M. Husmann, presi-
dent of the association for 1971-72, and
a prominent St. Louis businessman, gave
his report to the members. .
The conference warmly received this
old-fashioned patriot who spoke out for
his organization, to always defend the
country. From one who has served his
Nation, speaking before those who also
shouldered the task of defense, Colonel
Husmann eloquently and concisely stated
his dedication to the United States, and
its traditional spirit of patriotic mainte-
nance of freedom, plus efforts for peace.
I recommend these words of Colonel
Husmann to this Congress as an example
of the strong devotion to our country
that still persists today:
REMARKS BY COL. OLIVER M. HUBMANN
Webster defines a Patriot as "one who loves
his. country and zealously guards its welfare:
especially a defender of popular liberty."
This is the kind of patriot I was taught to
admire and emulate, The kind who has
fought for his country throughout its his-
tory. The kind who admits the imperfections
of government, but loves his country even
more in spite of them.
Today we have a new kind of patriot. The
draft dodgers who skulks into Canada,
Sweden, or any other country that will grant
them asylum, Those who trample and spit
upon the Flag. Those who bomb and burn
our public buildings and academic institu-
tions. Those who condemn our involvement
in Viet Nam and publicly esteem our en-
emies. Those who question every word
uttered by our leaders, but willingly accept
as the whole truth any and all charges
levied against us by our enemies.
There are many in this country who find
favor with this new type of patriot. We find
these 'sob sisters' amongst our clergy,
among our so-called intellectuals and even
amongst our leaders in the Congress and the
Senate. They say we should not have be-
come involved in Viet Nam and now because
we are so involved, the new type of patriot
must be permitted to vent his frustrations
as he desires.
The National Guard is made up of men.
Men from many walks of life. Men in differ-
ent stages of maturity. Men of different so-
cial antecedents. Men of various religious be-
liefs. Men with different political conic-
-tions. These qualities and characteristics
which each individual possesses, must be
nurtured, moulded and fused with those of
the next man until, as an entity, we can
move forward in a concentrated effort toward
a common goal. We must resolve to do every-
thing in our power to again convince the
people of our country that Webster's defini-
tion of a patriot is and always will be
correct.
There are too many in this country who
have forgotten that the two ideologies-
Democracy and Communism-cannot live
side by side except by artful truces and so-
called cold wars, neither of which can nur-
ture a real, lasting peace. The tentacles of
Communism creep insiduously wherever they
gain a foothold. Our land, our way of life,
our freedom and our liberty, as we know
them, are the prizes Communism strives to
take from us. Guardsmen must be constantly
prepared to fight this threat. We must not
permit ourselves to become the weak link in
the defense of this great nation.
There is a greater need for the existence of.
the Guard today than ever before. We must
let our fellow citizens know that the enemy
wants us to be careless, lazy and uninspired
in the desire to defend our country. That
he looks upon us with utter contempt when
we say we are tired of war. We must make
the public realize that America needs Its
men-soldiers and citizens alike-to work
continously to improve our defensive posture
while there is still time. If we wish to main-
tain for our children the liberty, freedom
and safety which we enjoy,.we must be pre-
pared to defend these truths to the death.
Consider for a moment what life would be
like without these privileges we accept so
matter-of-factly.
One thing is certain; we have the organi-
zation to build such a defense, We have the
know-how and the money in this country
to develop such a defense. Most important of
all, we have US, the National Guard. We can
discourage aggression now. All we have to do
Is feel the urgency, to realize the practica-
bility of being prepared, and to work-work
as men dedicated to the principle that the
freedom we enjoy shall not perish.
Our silver anniversary is an opportune
time to rededicate ourselves to the task at
hand, to filling our ranks with true patriots,
to teaching, to absorbing lessons learned, to
building a defense capable of filling the
needs of our people, our community and our
country.
Guardsmen have taken such dedicated
stands many times in history; always In the
cause of freedom and liberty. Our citizen-
soldiers, our National Guard, is older than
the Nation Itself. Dedicated men of the early
colonies organized units and trained to de-
fend their settlements long before the
Declaration of Independence. Many of our
present-day Guard units trace their histol
directly to these early groups of citizen-
soldiers.
We need to review the heritage willed its
by those who early stood in the defense of
our country. We need to relive the struggles
of the past, to see in our minds eye and feel
in our hearts the valiant stand they took so
this nation might be free. We need to think
of those who stood with Washington at
Brandywine and Germantown. We need to be
reminded of the Guardsmen, militiamen,
minutemen, call them what you will, who
bled at Bunker Hill. We need to trace their
footprints that marked with blood the snows
of Valley Forge. We must bend our backs and
grasp with freezing fingers the frosted oars
with Washington as he crosses the icy Dela-
ware. We must lay seigo with him to the
heights of Yorktown. We must strive with
those who followed Lee, Sherman and Grant.
We must feel the fury of the charge at San
Juan. We must share with them the blood
and sweat of the Philippines and the Mexicali
Border. Let us follow "Black-Jack" Pershing
through the holocaust of WWI. Eisenhower,
MacArthur and Patton through the war to
end all wars. Let us relive with them Argon-
ne, Chateau Thierry, Corregidor, Normandy
and MIG Alley. Finally Korea and Viet Nam.
For the first time in history American fight-
ing men find themselves in the unusual posi-
tion of fighting a battle they cannot win, a
war they are not supposed to win. A classic
study in frustration.
Is Freedom, Democracy and the American
way of life, which was bought at such a
tremendous price to be lost to the most
deadly enemy that has over theatened free
men? Has the sacrifice they made, been made
in vain? Can we not continue the fight, can
we not as citizen-soldiers bolster the de-
fenses, main them effectively and surely,
against any and all attacks of an enemy?
Can we not show a love for our country? A
love that surmounts all fears, all weaknesses
and dedicates men to preserve with their
lives the land they love?
I am not asking that we dedicate our-
selves to becoming a nation of warmongers.
No, I ask that we dedicate ourselves to work
for peace. I firmly believe a strong aggressive,
defensive posture is the best offense avail-
able to a country whose democratic ideals
prevents it from initiating an attack against
any enemy unless provoked beyond en-
durance.
Until we have made our country so Im-
pregnable, so invulnerable that an attack
would be suicidal, will our enemies keep their
distance. Until we have done this, the possi-
bility of America becoming a major battle.
field in a new world conflict becomes more
apparent with each passing day.
Gentlemen. Now is the time for us to look
to our defenbes, time to follow the heritage
which Is ours. The time to demonstrate, once
again, to all the world, that democracy is a
living thing, transcending all other ways of
life, and worth protecting at any cost.
(Mr. PRICE of Illinois asked and was
given permission to revise and extend
his remarks in the body of the RECORD
and to include an address by Mr. HoLI-
FIELD.)
(Mr. PRICE of Illinois remarks will
appear hereafter in the Extensions of
Remarks.]
(Mr. Bi7CHANAN asked and was given
permission. to extend his remarks at this
point in the RECORD and to include extra-
neous matter.)
[Mr. BUCHANAN'S remarks will ap-
pear hereafter in the Extensions of Re-
mar
NARCOTICS AND SOUTHEAST
(Mr. WOLFF asked and was given per-
mission to extend his remarks at this
point in the RECORD and to include ex-
traneous matter.)
Mr. WOLFF. Mr. Speaker, at this point
in the RECORD, I would like to insert the
texts of several formal statements made
before an Informal hearing which the dis-
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June 28, 1972 CONGRESSIONAL RECORD -HOUSE
tinguished gentleman from Illinois (Mr.
MURPHY) and I held on June I in New
York City.
The subject of the hearing has inter-
national narcotics traffic and I believe
that my colleagues in the House will find
this information most interesting and
useful to their work in finding a solution
to this vital problem :
NARCOTICS AND SOUTHEAST ASIA
(Opening statement of the Honorable LES-
TER L. WOLFF, of New York, June 9, 1972)
Let me open these hearings by stating that
they are an extension of the investigations
which we have conducted into the question
of international narcotics traffic and its con-
trol.
The drug problem here in the United
States has been steadily increasing over the
past decade and now permeates our daily
lives. The problem of hard drug addiction is
no longer confined to the urban ghettos; it
has spread into suburban communities and
even into our armed forces.
As members of the Foreign Affairs Com-
mittee we bear the heavy responsibility of
proposing and enacting legislation to assist
in anti-smuggling efforts throughout the
world. Such an important responsibility can
only be discharged properly based on com-
plete and accurate information. I for one
must say in all honesty that I have not had
cooperation in obtaining the necessary In-
formation. In fact, the reason for this hear-
ing and the ones which will follow is to get
at the information which we have thus far
found elusive.
I have been told about the impact of our
new anti-drug programs in the interna-
tional sphere on the heroin supply in this
country-some sources say it has had some
effect, others say it has had no effect. I
have been told that we are making strong
representations to other governments on this
matter, and I have been told by our own
agents that they cannot stop the drug traffic
overseas because their hands have been tied
for political reasons. Despite rosy predictions
and statements by high officials In our gov-
ernment, the International traffic in narcotics
continues to increase steadily.
I am deeply concerned that our priorities
in dealing with foreign governments may be
beclouded. Protecting our own people from
the scourge of heroin addiction by halting
the flow of narcotics at the source must be
our number one priority. I feel that there Is
a question as to whether we are suppressing
information related to the involvement of
officials of foreign governments in the drug
traffic reaching our shores. This perhaps is
being done to preserve the sensitive nature
of our international relations and we gloss
over the massive domestic problem which
confronts our nation. In effect we are basing
policy decisions not on the national self-
interest of protecting our own young people,
but of protecting an international situation
of questionable priority.
We are conducting this investigation pre-
cisely to bridge the gap between rhetoric and
reality on this question. The rhetoric about
the heroin traffic has been voluminous and
emotive; the time has come to. get the in-
formation necessary to halt this deadly traf-
fic by firm action.
We shall publish the information which we
uncover in this continuing investigation in
the Congressional Record and we will be call-
ing on the appropriate agencies of the Fed-
eral Government to report back to us as soon
as practicable on the veracity of the infor-
mation and on any actions they initiate to
deal with the problem. I for one refuse to be'
satisfied with the contradictory and evasive
answers which I have received and I am com-
mitted to bring the complete story to the
attention of my colleagues in the Congress
and to the American people.
OPENING REMARKS BEFORE THE HEROIN
TRAFFIC HEARING IN NEW YORK
Mr. MURPHY of Illinois. Good morning dis-
tinguished visitors and gentlemen of the
press. I have just a few words before we be-
gin today's proceedings.
I think most Americans are well aware of
the situation we face today with the mas-
sive use of heroin and other drugs among our
young people as well as a great number of
.military veterans.
I. along with the two other gentlemen here,
have conducted numerous investigations on
the use of heroin among our soldiers in Viet-
nam and our civilian population and the one
fact discovered in all cases was that drugs
are grown and refined illegally in foreign
countries with the final product then being
shipped clandestinely to the United States.
I think this is an important fact to re-
member because if we are ever going to pre-
vent the use of illegal drugs we must first
deal with the countries in which they are
grown and processed.
In the course of past hearings, we have
gathered a great amount of testimony from
many witnesses and all this testimony has
served to strengthen my belief that strong
measures are necessary to deal with the drug
.epidemic,
Today, we are going to hear more testimony
from several knowledgeable people in the
(fields of law enforcement, world health and
from an author who recently completed a
study on the politics of heroin.
Although we are planning more hearings
around the country, let us hope that we can
begin to further the education of the Ameri-
can public on the menace of drug abuse
with the facts presented during this hearing.
ALFRED W. McCOY
Mr. WOLFF. Alfred W. McCoy is presently a
Ph. D. student in Southeast Asian history at
Yale University. He has spent the last 18
months researching the international drug
traffic and his findings will be published in
a forthcoming book entitled "The Politics of
Heroin in Southeast Asia," Harper & Row.
Mr. McCoy's findings are based on research,
documents, and more than 250 personal in-
terviews conducted in the United States,
Europe and Southeast Asia. Sources of infor-
mation include V.S. military, intelligence,
and Embassy reports on narcotics, as well as
interviews with U.S. Embassy, A.I.D. and
C.I.A. personnel. Mr. McCoy also met with
numerous officials of local military, intel-
ligence, and customs bureaus in South Viet-
nam, Laos, Thailand, Hong Kong, and
Singapore.
In addition, Mr. McCoy has spent a week
living with an opium growing Moo tribe in
Laos. I am Informed that he has already
briefed our Bureau of Narcotics and Dan-
gerous Drugs on his findings.
TESTIMONY IIY ALFRED W. MCCOY BEFORE TILE
CONGRESSIONAL INQUIRY REGARDING INTER-
NATIONAL NARCOTICS TRAFFIC, JUNE 0, 1972
Southeast Asia is fast becoming the major
source of illicit narcotics for America's grow-
ing population of heroin addicts. Inter-
national criminal syndicates began shifting
their major sources of supply to Southeast
Asia in the late 1960s when the Turkish
government began a drastic reduction of its
opium production. If current programs are
completed as expected, Turkey will have com-
pletely eradicated legal opium production by
the end of this year. And within the corning
months Turkey's illicit drug traffic will also
be eliminated. However, many responsible
officials inside the State Department and the
US Bureau of Narcotics are very much aware
that unless serious preventative measures are
taken it is only a matter of time until all of
America's heroin supply comes from South-
east Asia. And if the drug traffic in South-
east Asia is ignored all our efforts in Turkey
will have been wasted.
116273
President Nixon has told us that there can
be no end to the drug traffic in this country
until illicit opium production has been
eradicated. Even at its peak in 1907-68 Tur-
key produced an estimated 100 tons of illicit
opium, equivalent to only 5% to 7% of the
world's total illicit supply. According to the
United Nations, Southeast Asia's bountiful
Golden Triangle Region-which comprises
the rugged mountain areas of northeastern
Burma, northern Thailand, and northern
Laos-harvests an estimated 1,000 tons of raw
opium annually. This is equal to more than
70% of the world's illicit opium supply. By
itself northeastern Burma accounts for over
50% of the world's illicit opium. In fact,
more recent US Bureau of Narcotics reports
estimate that northeastern Burma alone may
now be producing 1,000 tons of raw opium
annually.
Increasing quantities of Southeast Asian
narcotics are entering the international
smuggling routes and are finding their way
to the United States. Clandestine labora-
tories located in the tri-border area where
Burma, Thailand, and Laos converge are
producing a high grade of heroin which is
reaching the United States through the West
Coast, Europe, and Latin America. Hong
Kong's flourishing heroin laboratories use
morphine base from Southeast Asia to re-
fine high grade heroin for the American
market. Finally, Indochina's Corsican syndi-
cates have been supplying Marseille's heroin
laboratories with limited quantities of
Southeast Asian morphine base since the
early 1960s.
In many ways, Thailand Is the key to the
drug traffic in Southeast Asia. Most of the
region's Illicit narcotics transit through
Thailand on their way to the international
smuggling circuits. Across its northern bor-
der march Vast mule caravans carrying hun-
dreds of tons of Burmese opium. In fact,
most of Burma's opium exports pass through
Thailand. Opium refineries located along
Thailand's northern border process morphine
base and high grade heroin for the interna-
tional markets. Thailand's ports on the Gulf
of Siam serve as loading points for the
wooden-hulled trawlers that sail regularly to
Hong Kong loaded with morphine base for
Hong Kong's heroin laboratories. Moreover,
Thailand itself produces an estimated 160-
.200 tons of illicit opium every year, equiva-
lent to roughly 15% of the world's total
illicit supply. Given the importance of
Thailand's role in Southeast Asia's drug traf-
fio, it is not too much to say that the suc-
cess or failure of our government's campaign
against the International drug traffic hinges
to a large extent on Thailand.
Secretary of State Rogers and Ambassador
Unger have stated publicly that the Thai
government is giving us its "full coopera-
tion" and is doing everything possible to
stem the flow of illicit narcotics across its
borders. Despite these claims of progress, the
opium caravans continue to cross Thailand's
northern frontier unimpeded and the trawl-
ers are still sailing for Hong Kong regularly.
Those sympathetic to the Thai government
have offered a number of plausible explana-
tions for this failure: the rugged mountains
which form the country's northern frontier
are almost impossible to patrol; the That
government has no control over the dozens
of armed bands which bring opium across its
northern frontier; and the That trawlers are
extremely elusive and their movements are
carefully concealed. However, these expla-
nations are not borne out by the facts of the
situation.
In reality, the Thai government has a
great deal of control over the situation on Its
northern border. According to the CIA, some
80% to 90% of all the Burmese opium
which crosses into northern Thailand is car-
ried by caravans belonging to Nationalist
Chinese irregular units known as the III
Army, the V Army, and the 1st Independent
Unit. Through an elaborate network of radio
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11 6274 CONGRESSIONAL RECORD -HOUSE
posts and purchasing agents scattered across
northeastern Burma, these Nationalist
Chinese irregulars buy up most of the avail-
able opium every year during the harvest
season. Once the opium is collected from the
hill tribe farmers, Nationalist Chinese army
caravans comprising up to 600 mules and 300
armed men set out from their headquarters
in northern Thailand. These caravans move
from village to village through the rugged
ridges and mountains of northern Burma
and often return with up to 20 tons of raw
opium. Once the opium is brought into Thai-
land it is processed, frequently at the Na-
tional Chinese military bases, into heroin,
morphine and smoking opium.
Even though they are heavily involved in
the narcotics traffic, these Nationalists
Chinese irregular units are closely allied with
the That government. They patrol Thailand's
northern border with admirable efficiency
and collect an "import duty" of about $5.00
on every kilo of raw opium entering Thai-
land. In addition, some 1,400 of these irregu-
lar troops are providing an invaluable service
to the That government by battling anti-
government rebels in northern Thailand and
are used to prevent rebellions in other
troubled areas.
The remaining 10% of Burma's opium ex-
ports are controlled by Burmense rebels who
enjoy the covert support of the Thai govern-
ment. The That government has granted all
of these rebel bands closely guarded sanctu-
aries near its northern border. The Huei Kral
camp area in Chinagrai province has long
been a major sanctuary area for Burmese
rebels engaged in the opium traffic east of
the Salween River. The area surrounding the
Nationalist Chinese III Army headquarters
in Chiangmai Province is the most impor-
tant sanctuary for Burmese armed bands in-
?volved in the opium traffic. Gen. Mo Heng's
Shan United Revolutionary Army, Brig. Gen.
Jimmy Yang's Kokang Revolutionary Force,
Gen. Zau Seng's Kachin Independence Army,
Gen. Jac, Nhu's Shan State Army and Gen,
Kyansone's Pa-O rebels are among those
croweded together on a few mountain tops
in the Chiangmai Province, sanctuary area.
The entrances to all of these camps are well
guarded by That police, But so far there has
been no serious effort to slow down the flow
of opium crossing the border from Burma.
Similarly, the movement of the That trawl-
ers between Bangkok and Hong Kong is one
of the most meticulously monitored aspects
of the entire international drug traffic.
Through their own intelligence nets in Thai-
land, the US Bureau of Narcotics' agents are
sometimes able to learn the precise details
about the size of the drug shipments, the
name of the trawlers, and their probable de-
parture dates. For example, when I was in
Bangkok in September 1971, US agents told
me that a trawler had just loaded 1,500 kilos
of raw opium and 260 kilos of morphine base
for shipment to Hong Kong. However, be-
cause of systematic Thai police corruption
it was impossible to stop the shipment. As
these trawlers move into international Sea-
lanes, round the sopthern tip of Vietnam,
and head north through the South China Sea
to Hong Kong, they are monitored by US
Navy patrol aircraft. Several times during
their voyage, each of these trawlers is photo-
graphed and carefully studied by US Naval
intelligence officials. Yet even with this de-
tailed intelligence the That police have been
unable to disrupt the trawler traffic in any
significant fashion.
US narcotics agents have reported that
systematic corruption among the Thai police
makes serious enforcement work extremely
difficult. According to US agents, almost every
major narcotics trafficker has a high level
"advisor" on the Thai police force. Before
every major shipment of narcotics is moved
the syndicates consult the police to make
sure there will be no unexpected interference.
US agents have learned through bitter ex-
perienco that any intelligence they gather on
the traffic will find Its way to the syndicates
if they share their information with their
That counterparts.
In light of these enormous problems, See, of
State Rogers' assertion that the Thai-au-
thorities are giving us "full cooperation" with
our anti-narcotics effort hardly seems justi-
fied. In fact, responsible US officials in Wash-
ington, D.C. have admitted to me privately
in recent weeks that the Thais are still very
far from taking serious steps to end the
narcotics traffic. These officials report that
the sensitive state of Thai-American rela-
tions, particularly over the negotiations for
the opening of new air bases for the Vietnam
War, make It impossible for anti-narcotics
work to be anything more important than
"one of our top five or six priorities" in Thai-
land.
Once again we are faced with a situation
where our diplomats have chosen to sacri-
fice anti-narcotics work to political and
military objectives. And once again we are
faced with a clearcut choice between our
fruitless quest for military victory In Indo-
china and eradicating the international drug
traffic. There are enough narcotics in South-
east Asia to fuel our heroin plague for gen-
erations to come. Until we make anti-nar-
cotics work our No. 1 political priority in
Southeast Asia we will have to learn to live
with our heroin problem.
NELSON G. GROSS
Mr. WOLFF. Our next witness is the hon-
orable Nelson G. Gross. We are pleased that
Mr. Gross who serves as Senior Advisor to
the Secretary of State and coordinator for
international narcotics matters was able, on
very short notice, to rearrange his schedule
to appear here today. We look forward to
hearing your comments.
STATEMENT DY NELSON GROSS, SENIOR ADVISER
TO TIIE SECRETARY OF STATE AND COORDINA-
TOR FOR INTERNATIONAL NARCOTICS MATTERS
BEFORE THE CONGRESSIONAL INQUIRY REGARD-
ING INTERNATIONAL NARCOTICS TaAFFIc,
JUNE 9, 1972
I welcome the opportunity of appearing
today and setting the record straight on the
progress and the integrity of the United
States Government's anti-narcotics program
in Southeast Asia. I shall address my state-
ment essentially to the recent allegations
regarding that program made by Mr. Alfred
W. McCoy, a student at Yale, and then an-
swer your questions.
With all due respect to Mr. McCoy's ob-
vious interest in seeing the scourge of drug
abuse brought to an end, our official infor-
mation reveals that much of what he has
reported is out of date and thus must be
labelled misleading and inaccurate. The
problem of drug abuse is all emotionally-
charged issue. While it may well make good
copy In the eyes of a book publisher to
charge-as Mr. McCoy has done in sensa-
tional fashion-that the Government of the
United States "is aiding and abetting the
influx of heroin into our nation," nothing
could be further from the truth. Equally
sensational and, as far as we can ascertain,
unsubstantiated, is the charge by Mr.-Mc
-
Coy that high government officials in Thai-
land, Laos and South Viet Nam "are actively
engaged in the heroin traffic and are pro-
tecting the region's powerful narcotics syn-
dicates."
Mr. McCoy somehow missed the name of
the kingpin of the heroin traffic in South-
east Asia. The man is LO Using Han of
Burma. His control of the area opium runs
the gamut from opium poppy fields, along
the smuggling routes, to his heroin re-
fineries.
LO has a virtual monopoly on heroin re-
fining in the section. Many of the refineries
driven out of Laos and Thailand have come
under LO's control in Burma.
June 28, 1972
We have discussed the urgent problem
posed by LO's operation with the Burmese.
But LO operates within insurgent-controlled
territory and is beyond the control of the
Burmese Government.
I now turn to the three major allegations
made by Mr. McCoy in his June 2 statement
before the Foreign Operations Subcommit-
tee of the Appropriations Committee, U.S.
Senate.
1. "Much of the heroin entering the United
States now originates in Southeast Asia,"
Southeast Asia is not a major source of
heroin on our market. While the "Golden
Triangle" area of Burma, Laos, and Thailand
yields an estimated two-thirds of the world's
illicit opium supply, most of that output is
consumed in traditional Asian markets. The
overwhelming majority of the heroin coin-
ing to the United States originates in the
Middle East and is processed in European
labs before being smuggled into our country.
We estimate that probably only five percent,
certainly no more than ten percent, of the
heroin presently flowing to the United States
originates In Southeast Asia. Whatever the
figure, we are obviously concerned. We are
further concerned about the prospect of a
swing in international traffickers' interest
from the Middle East to Southeast Asia, par-
ticularly. as the Turkish Government's ban
on opium poppy cultivation results in di-
minished supplies.
2. "The governments of South Viet-Nam,
Laos, and Thailand are actively engaged in
the heroin trafflo."
It so happens that Mr. McCoy selected
three of the countries with which we are
working very closely. Perhaps progress has
not been as rapid as one would like, but,
drugs have been tolerated over many gen-
erations in these countries, and the solution
Is far from an overnight solution. Traffick-
ing in drugs in Thailand was legal until
1958, and not until last November did the
Lao Government move to prohibit drug traf-
fleking. At the moment in Laos, we have two
BNDD agents with an additional one expect.
ed to arrive, four permanent Customs agents
and five additional ones on TDY, two Public
Safety Officers with three more scheduled to
arrive in the near future, and one AID of-
ficial.
In Thailand, we have ten BNDD agents, two
Customs agents, and one Foreign Service
Officer.
And in Viet-Nam, there are ten Public
Safety Officers, two Customs agents, and one
BNDD agent.
I should like to provide additional com-
ments on each of the three countries:
South Viet-Nam-The U.S. troop with-
drawal and suppression efforts have knocked
the bottom out of the heroin market in Viet-
Nam, causing prices to plummet from $8,000
per kilo last year to $3,000 or less at present,
All indications are that heroin sellers have
had little success in building an alternative
market among the Vietnamese to replace
their lost G.I. consumers. In such a situation,
it is logical that suppliers will be tempted to
seek channels to other markets, including the
United States. For this reason, our authorities
in Viet-Nam have been watching intently for
signs of such a development. Our most recent
intelligence indicates that there is no orga-
nized apparatus smuggling heroin from Viet-
Nam to the U.S. Without exception, those im-
plicated in such activities have been low level,
individual entrepreneurs who lack an orga-
nized distribution system. With the disap-
pearance of the G.I. market, many traffickers
in the region appear to be abandoning heroin
to return to the traditional opium trade.
The Government of Viet-Nam with the co-
operation of the U.S. Mission has made con-
siderable progress in reducing narcotics traffic
and drug abuse. The U.S. Mission has been
intensely aware of the heroin traffic in Viet-
'Nam since the drug first appeared in late 1909
and first became available to U.S. servicemen
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during the first half of 1970. In March 1970
the Bureau of Narcotics and Dangerous Drugs
(BNDD) initiated a survey to define the role
of Asia in the world's narcotics traffic which
laid the groundwork for addressing the basic
problems in Southeast Asia of production,
distribution, suppression, and rehabilitation.
As evidence of the Mission's concern over in-
creasing drug abuse, IVIACV carried out a na-
tionwide drug survey in July 1970 which indi-
cated that heroin was being introduced in
Viet-Nam in considerable quantity. As a re-
sult, a MACV drug abuse task force was
formed in August 1970, and a comprehensive
drug suppression program was developed and
carried into effect. Under the program Com-
bined Anti-narcotics Enforcement Commit-
tees were established in each military region.
A joint American and Vietnamese Narcotics
Investigation Detachment was to gather drug
intelligence and provide a coordinated in-
vestigative capability to eradicate large sup-
ply sources of narcotics. Another important
feature was the establishment of a joint U.S.
Service Customs Group.
On the civil side, the Mission developed a
narcotics control action plan which calls
for the involvement of all elements con-
cerned with the suppression of drug abuse
and trafficking.
As soon as the narcotics problem began to
assume serious proportions, high level coor-
dination and planning efforts began between
the Mission and the Government of Viet-
Nam. Prime Minister Khiem initiated a pro-
gram to reduce the use of and traffic in
drugs throughout the country. Ambassador
Bunker and General Abrams met with Presi-
dent Thieu to discuss specific measures, and
as a result President Thieu designated a team
of experienced intelligence and police offi-
cials to develop and carry out an effective
action program. He also set up interminis-
terial drug suppression committees at the
national and provincial levels, replaced key
personnel in the police and other areas af-
fecting narcotics activities, and dictated a
nationwide customs crackdown to seal off
all airports and harbors through South Viet-
Nam. A tax-free reward system was estab-
lished and a drug education campaign was
begun. Prime Minister Khiem was given di-
rect supervision of the national campaign
and was instructed to use the coordinating
machinery of the pacification program to
carry it out.
As a result of these combined U.S. Mis-
sion/Vietnamese Government efforts, the
number of arrests on narcotics charges went
from 2,911 in 1969 to 6,464 in 1971. Heroin
seizures throughout Viet-Nam rose from 12
pounds in 1969 to 271 pounds in 1971 and
opium seizures increased from 11 pounds in
1969 to 1,071 pounds in 1971. Most impor-
tant, the big time traffickers no longer find
it profitable or safe to operate in the coun-
try. Even now, under existing conditions of
martial law and the requirements of national
defense against the North Vietnamese inva-
sion, joint U.S./South Vietnamese narcotics
operations continue.
The arrest last year of two pro-Thieu mem-
bers of the Lower House is an indication the
Vietnamese Government is actively engaged
against the heroin traffic. One was dismissed
and the other was sentenced to seven years.
Laos-The Narcotics Control Law imple-
mented last November makes any cornmer-
cial transaction involving opium or its deriv-
atives illegal and for the first time gives the
Lao Government a legal basis for interdict.,
ing illicit traffic. Strict controls have also
been placed on the importation and distribu.
tion of acetic anhydride, a chemical required
in the heroin refining process. Last November
7, 730 gallons of acetic anhydride-enough
to make three tons of heroin-were seized.
Also several seizures of opium and heroin
have been made, The most recent seizures
were 28 kilos of opium, on May 26 and 30 kilos
of opium and 9 kilos of #4 heroin on June
7. Inspection procedures on domestic and in-
H 6275
up. . AA, CASI and Lao air development are in-
in the absence of laws forbidding narcotics spected. Where boarding passengers refuse to
trafficking, Lao law enforcement agencies had submit to inspection or are found to have
not been staffed, trained or equipped to in- contraband in their possession, they are
terdict the traffic. Therefore, since passage
of the law, the Government has concen-
trated on establishing an equivalent of the
BNDD to lead and coordinate narcotics con-
trol. It is headed by a military officer who
reports directly to the Prime Minister and
has jurisdiction over civilian and military
enforcement efforts. The Lao national po-
lice and customs agency have also established
special narcotics control units.
The U.S. Mission was most effective in en-
couraging the passage of the Lao law. Our
narcotics enforcement advisers from the
BNDD, Customs, and USAID's Public Safety
Division are hard at work advising and train-
ing their Lao counterparts in Vientiane and
other key points, including Ban Houei Sai in
the Golden Triangle. Specialized equipment
will be provided to the new narcotics agen-
cies as their personnel are trained to use it.
The production of opium in Laos, which
may have been as high as 100 tons a year,
has been sharply curtailed, and our intelli-
gence indicates that the flow of opium and
heroin through the country have also de-
creased considerably.
In Mr. McCoy's statement of June 2, he
indicated that most of the opium traffic In
northeast Laos in controlled by Vang Pao.
This statement ignores the fact that most of
northeast Laos is controlled by the North
Vietnamese. Opium production in those areas
of northeast Laos still under Lao Govern
ment control could not exceed more than a
few tons a year, and these are consumed by
the hill tribesmen. As for Vang Pao, he has
taken a strong public position against opium
cultivation and trafficking by the Moo. He
considers opium addiction a serious problem
among his people and wishes to prevent fur-
ther addiction and to rehabilitate those al-
ready addicted.
As for Ouan Rathikoun, It may be that he
was involved in the opium traffic before It
was illegal, but we are not aware of anything
more than unsubstantiated allegations con-
cerning his past or present complicity. With
regard to his "control" of the "largest heroin
laboratory in Laos," once again, all we have
is allegation. Mr. McCoy was apparently re-
ferring to a refinery at Ban Houle Tap which
was abandoned last summer. Equipment and
chemicals were discovered in the jungle and
seized by a team of Lao narcotics agents. Mr.
McCoy quoted a CIA source in stating that
this refinery had a capacity of 3,000 kilos of
heroin per year. Members of our Mission have
examined the site and have estimated that it
could have produced less than 1,000 kilos as-
suming a 24-hour-a-day operation.
With regard to Mr. McCoy's allegation con-
cerning Air America, I should like to quote
the following statement released in Wash-
ington on June 2 by the Managing Director
of Air America:
"Mr. Alfred W. McCoy today told the Sen-
ate Foreign Operations Committee: 'In
Northern Laos, Air America aircraft and heli-
copters chartered by the U.S. CIA and USAID
have been transporting opium harvested by
the agency's tribal mercenaries on a regular
basis.'
"This statement is utterly and absolutely
false. AA and USAID have cooperated in a
security program which effectively prevents.
the carriage of drugs on any of the airline's
equipment. This program is constantly being
reviewed to make sure that drug smugglers,
cannot misuse the company's facilities. There
is an intensive program of inspection of both
passengers and cargo carried out in close
collaboration with local and U.S. authori-
ties. At up-country sites, Inspectors inspect
all baggage of passengers and crew members
departing from their stations. All cargo
placed aboard up-country sites is inspected
by members of the Inspection service. All
denied the right to board the aircraft and
their names are turned over to local Lao
authorities. Through these and related meas-
ures, attempts by individuals to carry opium
on company airplanes have been detected and
prevented. These small time smugglers and
users are the greatest threat and the security
inspection service has constituted an effec-
tive deterrent,
"Through its many years in the Far East,
AA and its employees have been well aware
of the dangers of drug use and the drug
traffic. It has been the policy of the com-
pany and its many local employees to do
everything in their power to oppose. any
traffic in drugs. To this end there has been
close cooperation between the company and
U.S. and local authorities concerned with
the drug problem.
"If Mr. McCoy or any other individual can
bring any proof that any Air America em-
ployee has been connected in any manner
with the drug traffic appropriate disciplinary
action-will be taken and the matter referred
to the proper authorities."
Thailand-For some years the Thai Gov-
ernment has been engaged in a major effort
to settle the Meo hill peoples and to bring
them under control, Unfortunately, these
RTG efforts have been a major source of
Moo resentment toward the Thai and have
helped make the Moo receptive to Commu-
nist antigovernment propaganda and insur-
gency. In addition to military efforts to put
down the Communist rebellion, the Thai are
trying to improve hill tribe welfare. Particu-,
larly noteworthy is the interest of the King
of Thailand 111 the welfare of the hill peo-
ples: he is assisting in the development of
other cash crops as alternatives to the opium
POPPY.
Enforcement efforts by the That Govern-
ment are hindered by the impossibility of
controlling adequately a long and mountain-
ous border and the complexities of con-
trolling passenger and commercial traftlo
inside Thailand. In its efforts to control nar-
cotics trafficking, the RTG has initiated a
resettlement program for the Chinese Irregu-
lar Forces (CIF) under which the CIFs would
turn over all their opium stocks to the RTG
and cease their involvement with narcotics
in return to land upon which to settle.
Twenty-six tons of CIF opium were burned
by the RTG in March 1972.
During the past year, the Thai have in-
creased their efforts in the drug field with
U.S. and UN assitance. A US/Thai Memo-
randum of Understanding was signed in
September 1971 provding for increased Thai
enforcement capability through U.S. assisdr-
ance to That police and customs officials.
The Thai also signed an agreement with the
UN in December 1971 establishing a program
to deal with the long-range aspects of the
drug abuse problem through crop substitu-
tion and addict rehabilitation.
After the US/Thai Memorandum of Un-
derstanding was signed, a planning group
was forced and has been negotiating specific
programs for implementation of the agree-
ment. BNDD has assigned agents in Bangkok
and Chiang Mat while U.S. Customs Service
personnel are serving in Bangkok. Thai police
have recently moved to crack down on local
traffickers and several major Thai and Ameri-
can traffickers have been arrested. A promis
ing start has been made and programs begun
which have the potential to bring the drug
problem under increasing control.
Based on all intelligence information avail-
able, the leaders of the Thai Government are
not engaged in the opium or heroin traffic,
nor are they extending protection to traffick-
ers. There have been reports of corruption
among some working level narcotics officials.
Police General Prasert, head of the Thai Na-
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 Approved For Release 2005/06/22: CIA-RDP74B04 00050007-2 June 28, 1972
? 116276 CONGRESSIONAL RECORD --i~tJUS~
tional Police and a member of the ruling of morphine In 1970 was more than 176,000 tional addiction and reducing the demand of
market for With
heroin, however the re-
s. The National Executive Council, has stated pub- killnaglhaeroin in the estimated illegal, is about present
lichy that he would punish any corrupt p
official. 10,000 kilograms of pure heroin each year. sources of law enforcement could indeed play o of
meani
more
heroin is roughly
ure
role. a. "The U.S. Government aware this Since one uival nt tolone kilo of morphine in terms a Thmuch e si gle most important step that can
q
traffic, but has not moved to stop op and has a
consciously concealed evidence of It of the inn- - of the opium consumed, it is apparent that be taken to stop the spread of narcotics a -
volvement of our Southeast Asian Allies." only about five percent of the free world' , diction and to reverse the trend of continu-
Clearly, the U.S. Government is aware of nar- opium supply is being diverted into the U.S. ' lug expansion of drug abuse is preventive
cotics trafficking in Southeast Asia, but to black market. Most businessmen would agree education. It is absolutely essential to per-
that
apotential nd undesi addicts This
say we have done nothing to counter it is that this is quite a small percentage of loss suade dictionthe ish uue body of
patently inaccurate. Since the President's in terms of Ordinary pilferage. ar.
message to Congress on Juno 17, 1971, we One can be thankful that the controls over cannot be done once drug use begins. It must
have moved urgently to commit Customs, legal supplies of opium have been main- be done beforehand. The potential addict
BNDD, CIA, AID, and State Department per- tamed as well as they have. The United must be satisfied that the only choice, when
sonnel and resources to the fight against States e ip 9uced` 20,000 kilograms of the it-' confronted ,with an opportunity to use drugs, of mor-
to se
international drug trafficking. Moreover, far p
from concealing involvement of persons in- legal heroin in black market channels, and DR. RODOLPIIE COIGNEY
volved in pushing drugs, our Government has very little if any of this supply is believed
been sharing intelligence with friendly gov- ? to have been diverted Into illegal markets. Mr. WOLFF. Dr. Rodolphe Coigney of the
ernments in a concentrated effort to uncover There is, of course, no diversion of heroin World Health Organization and formerly di-
the various persons and systems which are from legitimate channels in this country' rector of the International Refuge Organ-
operating In the area. since there is no legal production or use of Ization has devoted his entire life to the
We feel that the drug problem is a major - the drug in that form. study of problems in international health.
facet in our bilateral relations with many. Other countries which consume a substan- Dr. Coigney who currently serves as direc-
countries throughout the world. We have tial amount of legal opium for medicinal pur- tor of the World Health Organization's liaison
made that point clear to those countries and poses are Belgium, Bulgaria, Czechoslovakia, office with the United Nations received his
we are asking them to join with us in the France, Germany, Hungary, India, Japan, the M.D. from the University of Paris and a
fight. The Governments of Thailand, Laos, Netherlands, Poland, Rumania, South Africa, Master's Degree in public health from Col-
and Vietnam have already joined us in the Spain, Switzerland, Russia, England and umbia University. He has served in the world
fight and, while we have a long way to go, we Yugoslavia. With this much legitimate nob heWealtharorgardgratefulzation since 105Yor taking the
feel that during the past year some real elimination of the opium poppy to him
progress has been achieved. appear to be a realistic goal, at least not time to enlighten us as to the work of the
until a substitute pain-killer has been de-' World Health Organization in the matter of
WHITNEY NORTH SEYMOUR, JR. voloped. The best that can be hoped for is drug abuse control.
Mr. WOLFS'. We are pleased to welcome the the exorcise of adequate controls over pro-
TESTIMONY BY DR. RODOLPEIE VOIGNEY
Honorable Whitney North Seymour, Jr. as our duction, distribution and demand.
next witness. Mr, Seymour has served for the Although the United States is the prize Mr. CHAIRMAN: I am honoured at the in-
past three years with great distinction as market for illegal heroin because of the al- vitation extended to me to speak about the
the United States Attorney for the Southern most unlimited dollars that U.S. addicts have, role my organization--the World Health Or-
District of New York. He has testified on this available to spend, it is not the only place ganization-is playing in the fight against
critical subject before other congressional where illegal narcotics traffic is a problem. ? the growing menace of drug-dependence
panels and I feel sure that his remarks will Nearly all of the countries in Asia have an around the world.
be most relevant and useful to us, illicit traffic in opium. There has also been an I used the phrase "drug dependence" dolib-
_ ? increase in illegal opium in European cotiul- erately to make the point that it is the
TESTIMONY nY WHITNEY NORTH SEYMOUR, JR., ? tries. The main area of illicit traffic In heroin area of drug dependence with which we are
U.S. ATTORNEY, SOUTHERN DISTRICT OF NEW and morphine, in addition to the United vitally concerned. The control of interna-
YORH States, are France, Iran, Southeast Asia and tional narcotics traffic is not within our com-
the Far East. petence, although it is an essential part of
So long as there is any cultivation of the Law enforcement efforts, upon which we one and the same problem that brings us all
opium poppy anywhere in the world, and so have relied primarily to control heroin traf- . here today.
long as the huge profits continue, heroin fic, must continue to play an important role. There is little doubt that drug misuse and
traffickers. Will seek out the opium wherever The key requirement is to readjust our en- . abuse, which ultimately leads to drug do-
it is grown and bring it into the U.S. market. , forceinent thinking to meet the problems pondence, has been on the upswing over re-
That does not mean that We should not pur-
sue which have developed over the course of our cent years. This is so not only for narcotics, every available means of control of opium experience with the narcoticsblack market, , as opium, heroin, but also-and perhaps I
and heroin production. It simply means that . The heart of those problems is the difficulty should say particularly so-for the new, psy-
we must not be so naive as to assume that of controlling the physical substance of chotropic drugs:
this will completely eliminate the narcotics heroin so that it cannot be grown, smuggled The amphetamines, or the stimulants;
problem, and distributed in the black market network . The barbiturates, or the sedatives; and
There is no immediate prospect that the without detection. Our present law enforce- The hallucinogens, as LSD.
cultivation of the opium poppy will ever be ment machinery is little better than trying The Global anxiety has been expressed
eliminated, for it is needed in large quan- to hunt an elephant with a cork gun. If law through international agencies calling for
titles .for legitimate medicinal purposes. In- enforcement is to have any major impact in. action-action on .all fronts, against illicit
deed, actual elimination of the poppy would curbing narcotics traffic, these minimal steps . traffic, against illicit supply and against il-
do great harm in terms of world health be- , must be taken: licit demand of drugs.
cause the supply of morphine as a pain re- 1. The machinery for international con- The U.N. Commission on Narcotic Drugs,
liever for medical purposes entirely depends , troh of heroin growth and manufacture must . the U.N.'s Economic and Social Council, the
upon it as a source of raw material. The only be strengthened. International bodies charged U.N. General Assembly itself, all have spoken
basis on which opium cultivation might be with the responsibility of opium control strongly to the issue-as has the governing
halted is through the development of an in- _
expensive must be adequately funded and staffed. Their authority of my own organization, the
substitute painkiller for opiates mission should extend to controls over all World Health Assembly.
which could be made available in all parts stages of opium growth, shipment, cultivat- As you know, a U.N. Fund for Drug Abuse
of the world. ion, conversion and stockpiling. Control has been created, financed out of
The major reporting world producers of 2' Effective lirpitations on illegal opium voluntary contributions, to support pro-
legal opium have been India, Turkey, and production and heroin smuggling can be grammes of such agencies as the World
Russia, in that order. Turkey and Russia pro- greatly advanced by technological research, ' Health Organization, the U.N. Food and
duce about equal amounts of opium; India if that research can produce practical tracer Agriculture Organization, and others. To this
produces about three times the combined elements which can be used in fertilizers or fund, the United States has already pledged
total of the other two. Countries producing sprayed on crops to aid in spotting concealed 'o, contribution of $2,000,000.
legal opium in smaller quantities include shipments of heroin. Research might also. What then is WHO's role? As mentioned,
Bulgaria, Japan, Pakistan and Yugoslavia. produce- remote sensor devices which can the suppression of illicit drug traffic and
Production of legal opium has been increas- themselves locate concealed shipments of supply is beyond its scope. But, even here,
mg in recent years, but even so it is insuffi- the drug. There are indications that this type WHO has the responsibility of identifying
cient to meet all of the legitimate needs, and of, technology could be developed with the dependence-producing substances, the avail-
most countries have had to draw on existing adequate commitment of funds. These posei- ability of which should be controlled; and of
stocks. The countries importing legal opium bilities should be fully canvassed, for they defining the degree of control recommended
for medicinal purposes have obtained 95 per- strike at the very heart of the problem of in. relationship to the therapeutic usefulness
cent of their supplies from India and Turkey. controlling the illegal movement of heroin. of the drug.
According to reports filed by participating Law enforcement alone can never fully con- This suggests very strongly that the fight
countries with the International Narcotics trol the Illegal black market in drugs with. against drugs must be based on a multi-dis-
Control Board, the. total legal manufacture out a major program for preventing adds- ciplinary strategy. The man from Interpol
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