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DRUG AND BURMA: HUMAN RIGHTS SUB-CO



Subject: DRUG AND BURMA: HUMAN RIGHTS SUB-COMMITTEE REPORT ON OCT-95.

/* posted Sat Mar 2 6:00am 1996 by DRUNOO@xxxxxxxxxxxx
                                                in igc:soc.culture.burma */
/* -----------" BURMA HUMAN RIGHTS REPORT, OCT 95 (4.15-4.27) "---------- */

CHAPTER FOUR: (4.15 - 4.27)
**************************
The Parliament of the Commonwealth of Australia
Joint Standing Committee of Foreign Affairs, Defence and Trade

A REPORT ON HUMAN RIGHTS AND THE LACK OF PROGRESS TOWARDS DEMOCRACY
IN BURMA (MYANMAR)     October 1995

CHAPTER FOUR: BORDER REGIONS (4.15 - 4.27)
-----------------------------------------
THE DRUG TRADE

The Extent of the Drug Trade

4.15  What has flourished in northern Burma since the ceasefires of 1989 is
not peace but the drug trade. Prior to the  ceasefires  the  production  of
opium  was  estimated  at less than 1,000 tons; in 1992-93 it was more than
2500 tons. The area under cultivation in north eastern Burma has  increased
from  92,000  ha  in  1987 to 142,000 ha in 1989 to more than 165,000 ha in
1993.

The Nature of the Drug Trade

4.16 In the Shan State major  Chinese  narcotics  traffickers  have  become
involved  with  the  ethnic  insurgent  groups. Ex-members of the Communist
Party of Burma (CPB) have used the drug trade and the money it can generate
to establish themselves as warlords in the northern  provinces.  The  peace
they  have  brokered with the military regime in Rangoon has left them with
their arms and their areas of control  undisturbed.  Conflicts  within  the
various  Shan  State  organisations  reflect  disputes  between  those with
political objectives and those with illicit economic interests as  well  as
power  struggles between the crime syndicates eying for control of the drug
trade.

4.17 Over the last ten years it appears that there ahs been a shift in  the
centre  of operations from the Thai border in the southern Shan State where
Khun Sa had most of his heroin laboratories to rival groups on  the  border
of Yunnan province. It is estimated that Khun Sa's share of the opium trade
has  fallen  from  80  per  cent in the mid-80s to less than 50 per cent by
1993. This north eastern  region  is  now  largely  under  the  control  of
remnants  of  the CPB, chiefly the United Wa State Army (UWSA), the Burmese
National Democratic Alliance (BNDA) and the  Eastern  Shan  State  National
Democratic  Alliance  (ESSNDA).  Individual  narcotics  dealers such as the
Pheung brothers, the Wei brothers, the Yang clan and Lo Hsing Han  and  Lin
Ming Xian compete for a share of the heroin trade. The distribution network
has also shifted to routes through Yunnan and China to Hong Kong and Taiwan
or  through Laos and Cambodia as well as the more traditional route through
Thailand. The ethnic armies  protect  the  areas  of  cultivation  and  the
initial  transport  routes,  but  organised  crime  provides a distribution
network into the markets  of  China,  Taiwan,  United  States,  Europe  and
Australia [11].

Corruption of Government

4.18  The drug trade corrupts every government and every region it touches.
It is an international problem  requiring  an  international  solution.  It
leads  to  the  bribery  of  officials who thwart the implementation by the
national government of any corrective policy; it distorts financial markets
through money laundering practices; it is attended by criminal  activity  -
murder,  smuggling  and  the spread of private armies; it is accompanied by
addiction and the consequent debillitation of the population, prostitution,
the trafficking of people, illegal immigration and the spread of HIV/AIDS.

4.19 In Burma the Government of the SLORC has publicly and  internationally
declared  that it seeks to eradicate the cultivation of the poppy and opium
refining in the border regions. It seeks development assistance to  provide
alternative  to  the border communities and it wishes to cooperate with the
UN  and  other  international  drug  control  agencies.  Particularly,  the
Government has claimed that the signing of ceasefire agreements provides an
opportunity to deliver economic development to these areas.

4.20  In  September  1994,  the  Government announced a Master Plan for the
Development of the Border Areas and National Races. Drug  control  operates
through  the  central  Committee  for Drug Abuse Control (CCDAC). It has 17
narcotics task forces (NTF). Burma is a party to UN Conventions on Narcotic
Drugs and Psychotropic Substances.  It  passed  a  new  law  in  1994,  teh
Narcotic  Drugs  and Psychotropic Substance Law, which brings Burma's legal
code into compliance with the relevant UN conventions. In July 1993,  three
year  United Nations Drug Control Program (UNDCP) projects commenced. These
involve  law  enforcement  training  and  very  limited  crop  substitution
projects in the eastern Shan State and the Wa areas.

4.21 The US Drug Enforcement Agency (DEA) has also maintained a presence in
Burma. Pressure from the DEA to target the 'kingpins' in the industry would
appear  to  be  behind  the  attacks  on  Khun Sa [12]. This thrust is from
Thailand. (See the recommendation in Chapter 19 of the JSCFADT report  into
Australia's Relations with Thailand dealing with AFP/DEA coordinaiton.

4.22  However,  the  Committee  was  told that a significant feature of the
Golden Triangle's narco-political situation was:

        * the presence and role of major Chinese narcotics  traffickers  in
        the upper echelons of ethnic minority independence movements within
        the Shan State;
        * the increasing involvement of major players tolerated by national
        governments; and
        * the continuing involvement of national security organisations and
        intelligence  agencies  in  narcotic enforcement and the associated
        potential development  of  conflicts  of  interest  this  situation
        presents [13].

4.23 In support of this, the view was put to the Committee that the attacks
on  Khun  Sa  occurred at a time when his power was in decline and that the
prime objective of the SLORC was to crush the political opposition, not  to
eradicate  the  drug trade. It was claimed that the burning of opium by the
SLORC was a sham public relations exercise as the amounts made no impact on
a rapidly expanding trade. Khun Sa was expendable.

4.24 Of more serious concern was the claim, put by  a  number  of  sources,
that,  despite  the  statements of the SLORC to the contrary, the narcotics
trade was protected at the highest level of the Government.  The  Committee
was told that the involvement was evident at two general levels:

        *  on  an  individual  basis for personal profit, covering areas of
        responsibility for transport, protection and patronage; and
        * as a matter of policy, either explicit or  covert,  in  order  to
        raise government revenue [14].

There  is  a  curious  discrepancy  in  Burma's  national accounts. The IMF
estimates of Burma's foreign  exchange  reserves  for  1991  were  $US  310
million;  however they showed no decline in 1992-93 despite a trade deficit
of $US 406 million and a current account deficit  of  $US  112.7.  Moreover
Burma  has  purchased  arms  to the value of $US 1.2 billion in this period
[15].

4.25 Witnesses went on to say:

        In practical terms, the importance attached  to  the  role  of  the
        Directorate of Defence Services Intelligence (DDSI) and the Burmese
        Army  has  meant  that these organisations have a greater interface
        with ethnic minority groups than the police .... Representatives of
        the ethnic minority groups claim that most Burmese Army officers in
        the  Shan  State  are  corrupted  by  the  opium  trade.  Opium  is
        warehoused  at  Burmese  military  bases, while trucks transporting
        narcotics are sometimes escorted  by  military  vehicles  to  avoid
        inspection en route.

        Allegations  of  corruption  on  the  part  of members of the junta
        abound, with senior officers continuing  to  amass  fortunes.  ....
        According  to  Burmese  businessmen  who have dealt with them, both
        General Than Shwe [and] Lt  General  Khin  Nyunt  have  accumulated
        personal fortunes by manipulating the system and accepting millions
        of dollars in kickbacks [16].

If  these  allegations  are  true, and the only way to dispel them would be
greater transparency in the system of government in Burma, then it is clear
why the SLORC is  so  reluctant  to  recognise  the  results  of  teh  1990
election.  The  biggest  threat  to  their  status, power and wealth is the
democracy  movement.  This  committee  believes   that   until   there   is
accountability  in  the  system of government and a proper democratic base,
there can be no lasting solution to the problems of corruption, no  end  to
the  drug  trade  and no end to the violence and abuse of those Burmese who
wish to speak out against the corruption in their midst.

4.26 The Committee recommends that:

        THE AUSTRALIAN GOVERNMENT:

        (A) CONTRIBUTE TO THE UNITED NATIONS DRUG CONTROL  PROGRAM  (UNDCP)
        IN SUPPORT OF THE EXPANSION OF CROP SUBSTITUTION MEASURES;

        (B) EXAMINE THE FEASIBILITY OF CONTRIBUTING TO THE UNDCP PROGRAM BY
        OFFERING LAW ENFORCEMENT TRAINING; AND

        (C)  ENCOURAGE  ITS  DIALOGUE  PARTNERS IN ASEAN TO PURSUE WITH THE
        GOVERNMENT  OF  BURMA  LONG  TERM  SOLUTIONS  TO  THE  PROBLEMS  OF
        TRAFFICKING  IN  WOMEN AND DRUGS THROUGH FULLY NEGOTIATED POLITICAL
        SETTLEMENTS  IN  THE  BORDER  REGIONS  IN  CONJUNCTION   WITH   THE
        CEASEFIRES.

4.27  The  Committee  also  endorses  the  recommendation  on a cooperative
regional training program in  Chapter  19  of  its  report  on  Australia's
Relations with Thailand.

Footnotes:
---------
[11]  This  information  came  to  the  Committee from a number of sources.
Exhibit No 40, Confidential  submission  No.  35  and  Jane's  Intelligence
Review, Special Report No 5, The Drug Trade in South East Asia.

[12]  In  December  1993,  the  Burmese  armed  forces mounted an offensive
against the Golden Triangle warlord, Khun Sa and his army  which  is  still
continuing.  Thousands  of Government forces have since blockaded the ferry
crossings on the Salween River and put  an  economic  stranglehold  on  his
headquarters at Homong.

[13] Confidential submission

[14] Confidential submission/

[15] ibid.

[16] ibid.
-----------------------------------------------------------------------
Above materials are reproduction from the findings of Human Rights
Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence
and Trade of the Parliament of Australia, published in October 1995.
Anyone wishing to inquire about the document may contact Ms Margaret
Swieringa, Secretary, Human Rights Sub-Committee, Parliament House,
Canberra A.C.T. 2600, AUSTRALIA.
Best regards, U Ne Oo.
ENDS(4.15-4.27)\