BKK Post, March 26, 1998. DRUGS

[burma@xxxxxxxxxx]

March 26, 1998. DRUGS

Burma still major source of heroin
US study finds half world's supplies there
Nusara Thaitawat

Burma remains the largest source of opium and heroin, with an output of 
more than half the world's supplies, according to a report released by 
the US State Department this month.

The annual "Report on International Narcotics Control Strategy" 
estimates Burma's 1997 crop at 155,150 hectares, which could yield up to 
2,365 metric tons of opium gum, enough to produce 197 metric tons of 
heroin.

The report said there was no evidence the Burmese government "on an 
institutional level" was involved in the drug trade, but certain 
officials, particularly military men posted in outlying areas, were.

The Burmese government made more seizures of illicit drugs and 
destruction of refineries last year. It also arrested and prosecuted 
more corrupt officials, and cooperated more with the United States and 
Thailand, but these efforts suffered from lack of resources and 
political will, the report said.

There was also no discernible effort during 1997 to stop money 
laundering, suspected to be carried out on a massive scale. "The 
government systematically encouraged leading drug traffickers to invest 
in infrastructure and other domestic projects," the report said.

Ethnic drug trafficking armies with which the Burmese government has 
negotiated ceasefires, such as the United Wa State Army (UWSA) and the 
Myanmar National Democratic Alliance Army (MNDAA-Kokang Chinese), 
remained armed and heavily involved in the heroin trade, the report 
said.

It also listed top leaders of those ethnic armies which the US 
government believes are involved in the heroin and/or amphetamine trade 
as follows:

Sai Lin (Lin Mingxian) of the Eastern Shan State Army (ESSA); Yang 
Maoling, Peng Jiasheng and Liu Goushi of the MNDAA; Pao Yugiang, Li Zuru 
and Wei Xuekang of the UWSA; Mahtu Naw of the Kachin Defence Army; and 
Yawd Serk of the Shan United Revolutionary Army. Chang Shifu, better 
known as Khun Sa, is also believed to still be involved, at least 
indirectly, in the narcotics trade through his subordinates.

The report also said drug abuse, in particular intravenous drug use, is 
on the rise in Burma and with it an alarming spread of HIV/Aids, 
especially in the ethnic minority areas that are the sources of the 
drugs.

The US government urged Burma to prosecute drug trafficking 
organisations and their leaders, to deprive them of assets from the 
illicit drug trade, to act against drug-related corruption, and to hand 
over fugitive drug traffickers to the United States through third 
countries, like the case of Li Yunchung.

It also urged Rangoon to eradicate opium poppy on a wide scale in areas 
under its direct control or immediate influence, to press ethnic groups 
such as the Wa, the Kokang and the Kachin who have pledged to create 
opium-free zones in their regions to make good their commitments, to 
enforce laws against drugs and money laundering, and to provide strong 
support to multilateral drug control projects in Shan State.

The United States cut aid to Burma in 1988 following its brutal 
suppression of pro-democracy demonstrators. However, it has extended 
$500,000 under congressional authority to a two-year crop substitution 
project in the Kutkai area of northern Shan State. Counter-narcotics 
cooperation is limited to basic law enforcement operations. The Drug 
Enforcement Administration's liaison office in Rangoon focusses on 
providing intelligence on enforcement targets and on coordinating 
investigations of international drug trafficking groups.

------------------------------------------------------------------------