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STRANGE SILENCE OF OSS ABOUT ATS



WRITTEN WED 1 MARCH 2000, 6:00AM

 STRANGE SILENCE OF OSS ABOUT ATS
---------------------------------
Illicit drug issues in Burma are always controversial. All of us are
aware about the controversy surrounding the forced-displacement of WA
opium farmers near Thai-Burmese border. Should it be the WA rebel
leaders making pre-emptive move to counter possible drug-eradication
program? Or more likely, a southward expansion of WA's heroin empire. 

On the one hand, there has been a strange silence by the Burmese
military government, especially the Office of Strategist Studies (OSS),
regarding with production and sales of Amphatemint-Type-Stimulants(ATS).
This silence by OSS has heightened our suspicion about General Khin
Nyunt's direct involvement in the drug trafficking. In particular, a
report last year indicated General Khin Nyunt himself acquired shares in
five amphetamine laboratories (see excerpts of Prof. Desmond Ball's
report broadcasted last August). There have also been concerns expressed
by the Government of Thailand early this year about the ATS production
and trafficking by the WA groups (see two Strait Times articles below).
The fact usually responsive OSS has been silent on this particular
matter may indicate the their own boss - Gen Khin Nyunt -- has been
certainly involved in the ATS trafficking.

ATS : A MORE ATTRACTIVE OPTION
Observers note that since 1995/96, the increase in production and sale
of designer drugs (or) Amphetamine Type Stimulant (ATS) tablets from
Burma. As for the heroin production, Burma had been the largest producer
until 1997. Since that time, Burma accidentally fell-off from top-spot
as the  world's  greatest opium producer simply because of the bad
weather in Shan State and a dramatic increase of opium production in
Afghanistan. Burma's druglords seems to have also shifted their focus to
exporting the ATS.

In contrast to heroin export, the Burmese drug-lords are targeting these
ATS sales  to the local market, i.e. Thailand. In selling ATS, the
producers appears to keep a closer contact with their wholesale agents
in Thailand. In amphetamine production, the return for their investment
may also be quicker than that of  heroin. As for repatriation of
narco-profits, these wholesaler/agents in Thailand and their
producer-counterparts  in Burma do not need cumbersome money transfer
and laundering methods: few visits to Casinos across the border may 
pretty well do the job. 

QUIET PERSUASION TO MEGAPHONE DIPLOMACY
One would have no doubt about Thailand and its ASEAN colleagues have
made  "Quiet Persuasion" to Burmese junta in recent years to tackle the
drug problem. Considering lack of progress, the Thais necessarily
changed this type of persuasion to the so-called "Megaphone Diplomacy"
-- openly condemning Burmese junta through international media (see
Strait Times reports on 5 & 15 January 2000). Inspite growing disquiet
from Thailand, Burma's druglords brazenly continue operating their
amphetamine laboratories just across Thai/Burmese border. I was quite
surprise to find an amphetamine lab established not far from Mae
Sot/Myawadi in a report last year (see Far Eastern Economic Review on
9-September-1999). This must be seen as how the druglords in Burma
becomes so confident simply because they have put Burmese generals in
their pockets.

AMERICAN DRUG CONCERNS ON BURMA: OUR POLICY INDULGENCE?
Like many of Burma democracy supporters and activists, I would in some
way indulge myself thinking the international community and Americans in
particular would help resolve Burmese issues, provided that it is in
their national interests. In addition to human rights and democracy, the
illicit drugs from Burma is one possible issues to this end. One needs
to note this kind of thinking are made not only from the pro-democracy
camp alone.  The SPDC/SLORC itself had several times tried to exploit
the drug issue to approach US administration and international community
for proper acceptance. The ethnic liberation groups in Shan State in
some way also like to use the drug issues as a mean to legitimise
themselves in drug-eradication process (Personally, I see nothing wrong
about this).

In the wake of last years' INTERPOL Drug Conference in Rangoon, I was
led to thinking that the international community has an urgency to solve
drug problem in Burma. In my view, international community's cooperation
with Burmese junta (especially by military assistance) to suppress drug
production and sale in Shan State is unacceptable. Whereas several sides
(democracy/junta/rebels) appear try to get involved on this issue, I
have suggested to the international community and US Government last
March (15-Mar-1999 Communication) to initiate aerial-spraying program
that could be done with minimal cooperation from Burmese junta. We are
aware the opium cultivation is labor intensive process and it is most
efficient to destroy opium-poppy field on the ground. As for the
amphetamine labs (we know where they are), few drops of GPS guided
arsenals would do the job. My view is that, should there be any urgency
by International Community or Americans to solve drug problems in Burma,
they are to help themselves by all means. Nevertheless, this year's
opium season had already passed (opium gum were collected Nov/Dec), we
could only look forward to next year for such action.

IMPORTANCE OF POLICY ALTERNATIVE
At this point, one could well conclude such thinkings/advocacy about
American drug policy may be our own indulgence. On the one hand, such
alternative policy is quite necessary in order to prevent the military
junta exploiting the drug issues. From outside governments' view also,
it will be more efficient, insofar as drug eradication is in concern, to
cooperate with junta that is having power. Not all of these advocacy
efforts, therefore, are useless in spite visible results have we rarely
seen. 

ATTACK ON MONEY LAUNDERING
Though the international community obviously making  minimal commitment
on solving proper drug problem, they should not fail to counter money
laundering in Burma. The USG should make particular efforts to suppress
the Burma's druglords establishing links with legitimate business,
especially in Burma's neighbouring countries. The money laundering is a
very complex and technically sophisticated, and only few international
instrument to cover the matter. However, the effective use of Financial
Action Task Force (FATF) Recommendations, Mutual Legal Assistance
Treaties(MLATs) combined with diplomatic pressures may make improvement
to the money laundering problems in Burma.

We would never know the amount of narco-profit repatriated back to
Burma, except that it is substantial. For example, 80% of heroin sold in
Australia come from Burma (so too is in US and Canada). In this year,
the Australian Police have seized few large consignments of heroin.
However, for every one consignment seized, quite a few may have escaped
from the net since the heroin price in Australia has been as cheap as
ever. Hopefully, tracing down of these drug money and suppressing it
would help alleviate the drug problems in Burma. 

An Australian Federal Police officer has also stationed in Rangoon for
six month trial. I particularly do not have a high expectation that the
SPDC/SLORC will be meaningfully cooperating with the Australian drug
officer. This we still have yet to find out.

With best regards, U Ne Oo.
    
ENCLOSED IN THIS POSTING ARE:

1. ABOUT BURMA DRUG REPORT BY PROF DESMOND BALL (16/8/99)
2. THE STRAIT TIME REPORTS (5/1/2000 & 15/1/2000)

=====================================
WRITTEN 16-AUG-99, 6:00AM.

   BURMA DRUG REPORT BY PROF DESMOND BALL

I felt almost fallen ill as I read Professor Desmond Ball's recent
report on "BURMA AND DRUG: The Regime's Complicity in the Global Drug
Trade". The paper make an extremely serious allegation about direct
involvement by top SPDC/SLORC officers in heroine trafficking and
production and sales of amphetamine-type tablets. 

ACTIVISTS, JOURNALIST AND ACADEMICS: DIFFERENCE IN REPORTING MERITS

Although there were discussion amongst activist circle about the
possible involvement of senior Burmese military officers in drug trade,
since the logistics is difficult to all activists, we have never been
able to find any concrete evidence. Journalists, on the other hand, do
have some resource/connection to find out the possible leads to the
junta's trafficking problems. For example, reporters such Mr Bertil
Lintner and some from the Geopolitical Drug Watch, over the years, have
extensively reported the Burmese military personnel's direct involvement
in drug traffickings. Nevertheless, these journalists are considered
staunchly anti-junta and pro-democracy and therefore, their testimonies
has to be treated with proper caution.

Current drug report by Professor Desmond Ball not only comes from
academic quarters, but also describe in detail of top military officers
involving in drug trade as follows :

(BEGIN.EXCERPT)

     "[M]any of the top General in the SLORC/SPDC have benefitted
personally and directly from drug 
     trafficking activities. Some such as KHIN NYUNT, have organised
their own shares in drug 
     production and movement operations. Others have made lucrative
deals with various drug gangsters, 
     both those 'retired'in Rangoon and those controlling the operations
in the border areas, involving the 
     proceeds from 'money laundering'. The relationship between SENIOR
GEN THAN SHWE and Khun 
     Sa is probably of this sort.

     The second-in-command of the SPDC, General MAUNG AYE, who is also
Commander-in-Chief of the 
     Army, has extensive drug connections. Before he became
Vice-Chairman on 31 March 1993 he was 
     commander of the Eastern Command, based in Taunggyi, where he
commanded one of the main durg 
     production ares.

     KHIN NYUNT, the No.3 man, probably has the most extensive drug
connecitons. AS the chief 
     architect of the ceasefire for opium production exchange agreements
with the former insurgent groups, 
     he ensured himself a share of their drug profits. His Military
Intelligence (MI) network is used to 
     expedite passage of drug shipments both through northern Burma and
across the various borders. For 
     example, MI Detachment 17 in Sagaing Division is involved in the
passage of heroin into India. KHIN 
     NYUNT's closest personal relationships are with Lo Hsing-han to
whom he gave special trafficking 
     privileges in 1993; and, more recently, Lin Min-shing (Lin
Mingxian), who is based at Mong La 
     opposite Yunnan, and who is now ( since the retirements of Lo
Hsing-han and Khun Sa) the most 
     powerful drug warlord in Burma. In addition to his heroin
interests, KHIN NYUNT has recently 
     acquired shares in five amphetamine laboratories in areas
controlled by Lin Min-shing near Mong
     La.

     Other members of the SPDC who have direct and important drug
connections are the No.4, Lieutenant 
     General LIEUTENANT GEN TIN OO, who is officially titled Secretary
(2) of the Council, and who is 
     part-owner of two heroin refineries, at Murng Kerng and
Kaesee(Kesi) in central Shan State: 
     Bragadier General MYINT AUNG, who is now Commander of the Southeast
command (based at 
     Moulmein), but who in 1995-97 was the tactical operations
commandeer in the Mong Ton area of the 
     Traangle Region Command, where he was paid large bribes to protect
the herion refineries
     around Mong Ton, Mong Taw and Mong Tha."

(END.EXCERPTS)

Recalling one decade ago when I was in Burma, I have heard things about
military/MI convoys were involved, not in trafficking heroin, but in
some Jade/Gemstone blackmarket operations. Given the magnitude of
lawlessness as is now in Burma, it is entirely possible that the
allegation of traffickings by military and involvements of top military
leaders in it may be well founded. 

POLITICAL(HUMAN RIGHTS) AND SECURITY ISSUE

As the Burmese opposition activists, we do engage in a daily campaign
for reconciliation with the military junta, no matter one considered how
heinous of their 'human rights crimes' against the Burmese people. The
junta leader's involvement in drug trafficking, however, are not human
rights issues: it is considered a downright criminal activity. The issue
is critically international security issue on which we (the opposition
activists outside) or National League for Democracy will have not much
influence to say. As the allegation has been extremely serious, we must
certainly draw it to the attention of UN Security Council and
influential governments.

Burma observers would have well noticed that last July the Thai military
officials expressing concerns about Burmese army's involvement in drug
trade and Canadian Foreign ministers offers for cooperation. Hopefully,
it is not too late for junta to come clean of its drug involvements and
immediately cooperate with international community and opposition NLD to
resolve the issues.

With best regards, U Ne Oo.
*****************************

   The Straits Times, JAN 5 2000 

 Drugs: Thai PM blames Yangon 

 Chuan Leekpai hits out at Myanmar's lack of  cooperation in stemming
the inflow of drugs,  alleging that the latest haul comes from Myanmar 

 BANGKOK -- Thai Prime Minister Chuan Leekpai  yesterday blamed the
Myanmar authorities for soaring  drug-addiction  sates among youth
because of their lack  of cooperation in stemming the inflow of illicit
drugs.  The criticism follows the discovery by police here of two hauls
totalling 3.8 million amphetamine tablets allegedly manufactured by
ethnic Wa insurgents in eastern Myanmar. 

 "I have instructed the national police chief to find more effective
measures to intercept drugs as this haul has proved that international
cooperation was useless," Mr Chuan told reporters.   "From the report it
is clear that the drug belongs to the Wa, so the drugs certainly came
from outside Thailand," he said. 

 "I have made the observation that the arrests were accidental. How can
that quantity of the drugs have slipped past the authorities' eyes." 
Although Mr Chuan did not directly name Myanmar, Yangon has repeatedly
vowed to cooperate with neighbouring Thailand to clamp down on the
illicit cross-border trade. 

 Thai Foreign Minister Surin Pitsuwan received an assurance of
cooperation while in Yangon in August at a meeting with powerful junta
First Secretary Lieutenant-General Khin Nyunt.  Thai officials have
blamed the United Wa State Army for trafficking hundreds of millions of
amphetamine tablets made in jungle laboratories across the border. 

 Critics of the Myanmar regime accuse it of allowing the Wa insurgents
to continue trading drugs in return for a ceasefire.  Many believe the
junta also profits financially from the trade, a charge Yangon's
generals deny.  Myanmar is one of the world's biggest producers of
heroin along with Afghanistan and is accused of hosting hundreds of
amphetamine factories along its border with Thailand. 

 Meanwhile, Thailand reportedly has more than 600,000 child drug
addicts.  Researchers from Chulalongkorn University's Education Centre
for the Underprivileged recently found that children made up more than
50 per cent of total drug arrests and up to 80 per cent of cases in the
juvenile court related to amphetamines. 

 In Bangkok, amphetamine use is rampant in the slums. In Klong Toey port
slum -- home to 100,000 taxi drivers, stall holders, dockers and the
unemployed -- amphetamines known as Ya Baa are widely consumed by users
who need to stay awake for long working shifts. -- AFP 


The Strait Times- JAN 15 2000 

 Myanmar drug barons find sweet way to beat drug ban 

 Thai officials believe the drug barons are using  sugar mills to
produce ephedrine as millions of amphetamine tablets are seized each day 

 BANGKOK Narcotics officials fear drug barons in Myanmar are using sugar
mills to achieve self-sufficiency in ephedrine, the key ingredient in
amphetamines flooding from the military- ruled country.  With
cross-border movement of ephedrine under ever tighter control by world
governments, they believe guerilla groups like the United Wa State Army
and Eastern Shan State Army set up the outwardly legitimate enterprises
to beat the ban. 

 The Myanmar government ridicules the suggestion, but Thai officials say
the development would pose enormous problems in their battle to stem a
cross-border tide of hundreds of millions of amphetamine tablets every
year.  Viroj Somyai, head of the narcotics division of the Thai Food and
Drug Administration, told Reuters he had no hard evidence yet to prove
ephedrine was being made in Myanmar's Shan state. 

 "But from my calculations, I fear it may be happening at this moment.
There are huge quantities of methamphetamines flowing into Thailand and
the raw materials are not so easily obtained.  "We're seizing one
million, two million, three million tablets a day. That must mean
there's a huge amount of ephedrine being used." 

 Narcotics experts say the drug dealers of northeastern Myanmar's Shan
state have tended to get ephedrine illicitly from China, where it is
extracted from the indigenous ephedra plant.  But pharmacists say it can
also be produced by processing sugar or cheaper molasses with
benzaldehyde, a non-controlled substance that can be freely imported 

 This process, exploited commercially by firms like India's Krebs
Biochem to produce lawful ephedrine for hay fever and asthma medicines,
is now possible in Shan State given the sugar mills which ethnic groups
have established in recent years. 

 "What we are wondering is whether we were misled by trying to control
ephedrine from other sources -- from ephedra rather than sugar cane
molasses," said a senior Thai narcotics police officer who did not want
to be identified. 

 Mr Viroj said it was relatively simple to make ephedrine using sugar.
"It's not a complicated technique at all. It's cheap technology. If you
have a sugar mill industry and the facilities to produce alcohol or
whiskey, then you can do it." 

 Ethnic groups in Shan State say sugar production provides an
alternative to opium, long their main cash crop.  As well as sugar
mills, they have established plants for local production of alcoholic
beverages like whiskey. 

Mr R.T. Ravi, managing director of Krebs Biochem, told Reuters making
ephedrine from sugar or molasses did not need very costly technology but
he doubted it could be done without the knowledge of local authorities. 
"It's not big money about $3 million would give you a plant for 70-80
tonnes of ephedrine a year." 

 Mr Viroj said it was possible to test whether amphetamines were
produced with ephedrine from sugar or from ephedra.  He said the most
recent Thai tests were on drugs seized in 1998, which showed the
ephedrine was derived from ephedra.   A UN narcotics official in Bangkok
said he was unaware of ephedrine production in Shan state, but added:
"They are certainly producing a lot of sugar up there, and more and more
of it all the time." -- Reuters 

 EPHEDRINE: What it is 

 EPHEDRINE can be produced in two ways. By  extracting it from the
ephedra plant or by processing  sugar or cheaper molasses with
benzaldehyde.  Medicinally, it is used as a decongestant to treat
colds,  allergies and asthma.  It is classified as a stimulant and has
been banned by international sports bodies. Several athletes, including
Argentine soccer hero Diego Maradona, have been banned for testing
positive for Ephedrine.  Its side-effects sometimes mimic the effect of
amphetamines.  It is used to make the drug Ice. 

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