Shan Drug Watch

A publication of the Shan Herald Agency for News (S.H.A.N.)

Newsletter October 2010 issue 3

ContentsMessage from the Editor .............................................................................................. 3

Acreage up, output down.............................................................................................. 5

Junta’s drug elimination plan way behind schedule .................................................. 8

Results of S.H.A.N.’s survey of opium cultivation during the 2009-2010 season ... 9

Burma Army “draws pay from the hills”...................................................................... 11

Drug-free Burma by 2014? ...........................................................................................12

Lower opium prices despite poor harvest ................................................................13

Junta militias stepping into the Wa vacuum ..............................................................14

Poor addicts face jail, rich go free .............................................................................17

Wa still the whipping boy of the Triangle ...................................................................18

Rise of the new “politically correct” drug bosses ...................................................19

Yaba flooding Shan State ............................................................................................21

Crop substitution for whom? ......................................................................................22

Drug smugglers using ever new tricks......................................................................24

How Rangoon plays the drug game

“In response to the KMT (Kuomintang) incursion. Rangoon set up the Union MilitaryPolice (UMP) and encouraged UMP officers to deal drugs in competition with the KMT.

Later, Rangoon formed the KKY (Home Guard) to battle against the Communist party ofBurma. The KKYs were given free rein over the drug business.

Then, in 1989, the ceasefire groups were created to aid in the fight against non-ceasefireopposition movements. They were allowed involvement in the drugs trade. The MIS (Mili-tary Intelligence Service) of course received big dividends.

But since the start of 2005, the (junta backed) militia forces have been afforded specialfavor within the drug business. It won’t be long before they outpace the ceasefire groups.”

(UWSA political leader Bo Laikham, Chairman, Wa Political Consultative Conference, speaking to SHAN in April 2010)

Moderation is remedyExcess is endangerment

(Burmese Proverb)

3

Message from the Editor :For the second consecutive year, opium output is down in Burma, particularly in its biggeststate, Shan. Seizures of drugs have also been more frequently reported during the pastyear.

It might thus appear that Burma’s ruling junta really means business against drugs. Indeed,during the past year most international media reports have highlighted the ethnic armies asthe root cause of Burma’s drug problem, particularly those that are refusing to becomejunta-run militias unless their calls for self rule are answered. “Rebels manufacturing mas-sive quantities of drugs to sell for missiles and guns as they plan fight against junta” wasthe sub-heading of a recent British news article.

However, our findings in this newsletter tell a different story. During the past opium growingseason (2009-2010) our researchers travelled to every township in Shan State, interview-ing farmers, traders and officials about poppy cultivation and production and trade of opiumand other illicit drugs.

We learned that poppy cultivation was continuing unchecked in 46 of the 55 Shan town-ships, mostly in areas under the control of the Burma Army and its militias. However, ad-verse weather conditions caused a massive drop in opium output during the last season.

In other words, there is no evidence of sustained effort by the Burmese regime to eradicateopium. On the contrary, opium farmers throughout the state are being taxed by BurmaArmy units.

The regime’s War on Drugs is thus a charade, which is usedto tar its political opponents when convenient. An example isan official document received last year by Shan Drug Watch:The “Assessment of the 2008 Third Four-Monthly Activitiesand Plan for the 2009 First Four-Monthly Activities” producedby the Lashio-based Northeastern Region Command on 24February 2009.

The paper had praised the Kachin Defense Army (KDA), aceasefire group notorious for its drug activities, as a groupcooperating with junta authorities in the fight against drugs,while blaming the Kokang ceasefire group for heavy involve-ment in drugs. The reason for this became clear later in theyear, when the KDA voluntarily agreed to become a pro-gov-ernment militia, while the recalcitrant Kokang were invadedand occupied.

Such cynical manipulation of the drug issue is nothing new for the regime. In the 1960’s, ithad supported home guards led by drug-lords Law Hsing Han and Khun Sa to fight against

Ma Htu Naw, leader of formerKachin Defense Army (KDA)

4

resistance movements. But when Khun Sa made known his aim to free the Shan Statefrom the Burma Army’s occupation, the Kokang, Wa and other groups were supported tofight against him. However, now that the Kokang and Wa have declared their opposition tothe junta-supervised Border Guard Force (BGF) program, the time has come for the re-gime to brand them as drug villains and pit its hand-picked militias against them.

Observers are thus advised not to view the drug problem in Burma too simplistically. As theyears pass, it has become increasingly clear that unless Burma's political and humanrights problems are solved, the resolution of its drug problem does not stand the remotestchance.

Our sincere appreciation goes to the brave PalaungWomen’s Organization (PWO) for exposing the BurmaArmy’s involvement in the opium trade in two reports “Poi-soned Flowers” (2008) and “Poisoned Hills” (2010). We arealso indebted to member news agencies of Burma NewsInternational (BNI) that have kindly allowed us to make useof their findings.

And many thanks to friends who have helped us throughoutthe years and whose only wish, as the Thai saying goes, is“to do thankless jobs without taking credit” (Pid Thong LangPhra).

Mysoong Kha! (May you prosper!)

Shan Drug Watch program

Shan Herald Agency for News 26 June 2010

Kokang leader Peng Jiasheng Law Hsing Han, former “King ofOpium”

Khun Sa, late Mong Tai Armyleader

Pho

to :

SH

AN

5

Acreage up, output downThe 2009-2010 opium sea-son should have yielded abumper crop, with at least 46out of the 55 townships inShan State growing poppy.However, adverse weatherconditions caused a severedrop in overall opium output.

Farmers increasingly planttwo opium crops, one duringthe rainy season in July-Au-gust, and the main one at thestart of the cool season inNovember. Many farmerscomplained of heavy rainsthat washed away their earlycrop. This was followed by anunusually dry winter, whichcaused poppy plants towither and fail to producesap.

The drought has been attrib-uted to El Nino, a change inthe weather which happenswhen the usual cool oceancurrent in the Pacific is re-placed by a warm current.The lack of rain, and evendew, not only devastatedmost of the poppy fields butalso fields growing othercrops, such as paddy andcorn. A previous El Nino dur-ing 1998-1999 had a similarlydevastating effect on opiumoutput.

Climate change may alsohave contributed to the swift-ness with which many of the

plants died. Farmers in MongHsat pulling up witheredpoppy plants found an un-usual fungus on the roots. Itwas speculated that warm-ing temperatures may haveled to the spread of suchpests into the highlands.

The death of the poppy plantswas so sudden that somefarmers refused to believethe causes were natural.Some in Lawkzawk wereconvinced it was the work ofsoundless planes which hadflown through the night tospray the crop. “The plantssuddenly turned yellow anddry one morning,” said afarmer who fled to Thailandafterwards. “Nobody wasable to explain how it hap-pened.”

Another farmer who camefrom Kunhing had a differentstory. “My friends said thefields must have been de-stroyed by some sort of rayweapons from the Americansatellite,” he told Drug Watch.

Farmers complained thatthey were harvesting only afraction of the previous year'syield, which had already beenlow due to untimely frost inmany areas.

“The difference with the lastseason (second crop) wasthat while we had frost at thattime, now we have nothing toirrigate the fields, not even theusual morning dew (thatcomes during the cold sea-son),” said a farmer from

Opium field in Namkham Township (10 March 2010)

Pho

to :

SH

AN

6

Kehsi. “When harvest timecame, there was hardly anysap in the poppy pods.”

Only a few townships insouthern Shan State ap-peared unaffected by the ad-verse weather conditions,namely Namzang, Hopong,Faikhun and Panglawng,with the latter two townshipsproducing a bumper crop.

Almost everywhere else inShan State, farmers talked ofdownpours destroying theearly crop and dry weather forthe late crop. “We grew morethan the previous years, butgot less,” was the typical an-swer to Drug Watch’s ques-tion.

The increase in opium culti-vation was evident in all ar-eas of Shan State except forvarious territories along theChinese border, mostly un-der the control of former orcurrent ceasefire groupswhich had declared opiumbans: the National Demo-cratic Alliance Army (NDAA)in 1997, Kokang in 2003 andUnited Wa State Army(UWSA) in 2005.

In eastern Shan State, farm-ers interviewed by DrugWatch said they were able togrow poppies without fearoutside areas controlled bythe UWSA and the NDAA,more commonly known asthe Mongla group.

In Monghsat and Mongton,opposite Thailand’s Chiang-mai and Chiangrai, peoplewere careful their fields didnot overshoot into theUWSA’s 171st Military Re-gion. “If it’s under the Bur-mese (army) and the Lahu(militia), we have nothing toworry about,” one farmer ex-plained. “But the Wa wouldpull out the plants with theirroots.”

In parts of Mongyang andMongyawng not under theNDAA’s control, the situationwas the same. “You couldview the poppy fields from themotor-roads,” said a busi-nessman who makes a liv-ing in Mongyang and thenearby Mongkhark.

opium free in 2006. However,opium cultivation has re-sumed since the 2008-2009season.

“Lern Hsi (The Fourth LunarMonth, corresponding toMarch) is the month weShans usually celebrate,” re-ported a researcher. “Butmany in Hsenwi and Lashiowere conspicuously absent.I found out later that manyhad gone to join the harvestin Bo Mon's areas.”

Upon learning that Bo Monhad quietly lifted the opiumban, many families includingrich investors who had left in2006 wanted to return. ButBo Mon said, “No, I don’t likefair-weather friends like you,”reported the researcher.

In Namkham, on the Sino-Burma border, where theBurma Army has 17 militiaforces, poppy fields were al-most everywhere. “Becausewhere there is a militia, theBurma Army does not botherto patrol” said a housewifefrom the area.

In Namphakka, Kutkhai town-ship, also under militia con-trol, one researcher evensaw fields that used sprin-klers to water the plants.

One good indicator of theextent of poppy cultivation inthe far north is the amount ofgoats people in the north

The pattern of pro-govern-ment militia encouragingopium cultivation was alsoevident in northern ShanState. The Loimaw area(east of Lashio), under thecontrol of militia leader BoMon had declared itself

Bo Mon

7

drive into the neighboringYunnan province to sell, saida trader on the border. “Themore they bring in to sell, themore they are growing,” hesaid. “Because they use goatdung to fertilize the fields.”

As a result, the price of goatdung has been as much asK 20,000 ($ 20) per zaw(about 500 liters).

In other parts of Shan State,the natural fertilizer ischicken droppings, which arepreferred to cow dung. “Withcow dung, the poppy plant isgood but there is not enoughsap,” one farmer in Pang-long, Loilem township, ex-plained. “With chicken drop-pings, the plant grows talland the sap is plentiful.”

The high price of chickenduring droppings during therecent opium season was

therefore another indicationof increased cultivation. Onetruck driver said it was pur-chased at K 2,000 ($ 2) perbucket from the lowlands butsold at K 4,000-6,000 ($ 4-6)in Loilem.

However, the fertilizers wereunable to counter the ad-verse effects of the severe

drought. Around Homong,Mawkmai township, on theThai-Burma border, farmerssaid they harvested onlyabout two-thirds of the previ-ous season’s crop.

Farmers from both Pang-long and Mongkeung, insouthern Shan State, saidmany counted lucky if theyharvested one-third of theprevious year. While innearby Kunhing township, afarmer who came to find workin Thailand said that in theprevious year his opium fieldyielded 10 viss (16kg) butthis season (2009-2010) ityielded only 0.4 viss (0.25kg) despite expanded acre-age.

Interestingly, AFP also re-ported on 16 May 2010 that amystery disease had signifi-cantly reduced Afghanistan'soutput this year. q

Worldwide, more opium is produced legally thanillegally. It is lawfully produced for use in Phar-maceuticals in the following countries:

AustraliaBritainFranceHungaryIndiaSpainTurkey

(Irrawaddy, October 2005)

A Shan addict preparing raw opium for smoking

8

Junta’s drug elimination plan waybehind scheduleThe military regime’s 15-yeardrug elimination master planthat began in 1999 had tar-geted 51 townships:

q 43 in Shan Stateq 4 in Kachin Stateq 2 in Kayah Stateq 2 Chin State

However, after 11 years, ac-cording to S.H.A.N research,41 out of the 51 targetedtownships are still growingpoppies - meaning a mini-mum of several villages in thetownship were found to begrowing extensively (i.e. overhalf of the villagers had poppyfields).

It should be noted, however,that there are actually only 39targeted townships in ShanState and not 43 townshipsas designated in the plan.Mongkoe and Panghsai arenow in Muse township andthe 6 UWSA-controlled town-ships have been reorganizedinto 4 (according to theSPDC’s Home Ministry's2004 township lists).

In Shan State only 10 of thetargeted townships can claimto be free of opium cultiva-tion. These are almost allceasefire or former ceasefireterritories which lie along theChina border.

Panghsai Burma Army controlled since 1987Laokai/ Laogai Kokang-controlled 1989-2009Kunggyan Kokang-controlled 1989-2009Mongla National Democratic Alliance Army-

controlledPangwai United Wa State Army-controlledManphang United Wa State Army-controlledNapharn United Wa State Army-controlledMongmai United Wa State Army-controlledPangyang United Wa State Army-controlledWiangkao United Wa State Army-controlled

To page 18

10 targeted townships which are opium-free

Opium poppy growing areas in Shan State during 2009-2010 season

9

Results of S.H.A.N.’s survey of opiumcultivation during the 2009-2010 seasonPhase One (1999-2004): 22 townships targeted by SPDC for opium elimination

SHAN TOWNSHIP FREE NOT FREE REMARKSTATE

North (15) Mongkoe NFKunggyan F MNDAA(Kokang) territoryLaokai F MNDAA(Kokang) territoryKunlong NFHopang NFMongyai NFTangyan NFLashio NFNamtu NFMantong NFHsenwi NFKutkhai NFNamkham NFMuse NFPanghsai F Burma Army

East (1) Mongla F NDAA-ESS terrirory

South (6) Kunhing NFMongpan NFLangkher NFHsihseng NFFaikhun (Pekhon) NFMong Keung NF

Total 22 4 18

Phase Two (2004-2009): 20 townships targeted by SPDC for opium elimination

STATE TOWNSHIP FREE NOT FREE REMARKKachin Karmaing NF

Waingmaw NFMoemauk NFMoehnyin NF

Shan North Pangwai F UWSA territoryManphang F UWSA territoryNapharn F UWSA territoryMongmai F UWSA territoryPangyang F UWSA territoryWiangkao F UWSA territory

10

STATE TOWNSHIP FREE NOT FREE REMARK

STATE TOWNSHIP FREE NOT FREE REMARK

Shan State Kehsi NFSouth Monghsu NF

Namzang NFYawnghwe NFLaikha NF

Kayah Loikaw NF(Karenni) Dimawso NF

Chin Tonzang NFFalam NF

Total 9 - NF 9

Grand Total 51 10 41

Phase Three (2009-2014): 9 townships targeted by SPDC for opium elimination

Reports from both the Shan Herald Agency for News and other agencies also indicate thatat least 25 townships not targeted in the 15-year plan are also growing poppies:

Northern Shan State (6): Mongmit, Namhsan, Kyaukme, Nawngkhio, Manwiang andHsipaw

Southern Shan State (5): Loilem,Taunggyi, Kalaw, Lawksawk and MawkmaiEastern Shan State (3): Markmang (Metman), Tachilek and MongphyakKachin State (5): Sumprabum, Tanai, Putao, Machangbaw and HpakantKayah State (1): ShadawChin State (2): Tiddim and PletwaKaren State (1): MyawaddySagaing (2): Kalemyo and TamuMandalay : Areas adjoining Shan StateMagwe : Areas adjoining Arakan State

Reports from western Burma also indicate that poppy cultivation has spread across theborder into Bangladesh’s Chittagong hill tracts.

Shan East Mongyang NFKengtung NFMongyawng NFMonghsat NFMongton NFMongpiang NFMongkhark NF

Shan South Hopong NFMongnai NFPanglawng NF

Total 20 6 14

11

Burma Army “draws pay from the hills”Today’s Burma Army unitsare more involved in lookingafter themselves than fight-ing rebels, especially thosedeployed in the far-flung fron-tier areas. This is in accor-dance with the ‘live off theland’ policy established fol-lowing the 1988 coup.

Units on patrol in the coun-tryside therefore alwayshave two basic tasks to fulfil:to get both rations and taxfrom the people.

The tax scales are fixed lo-cally with the understandingthat poppy fields will be leftalone by the army and, in theevent that they have to be cutdown in order to satisfyNaypyitaw’s PR needs, thefarmers will be informed inadvance so they have time toselect a suitable field (orfields) that is either poor oralready harvested.

In Namkham, northern ShanState, each village is requiredto pay K 250,000-300,000 ($250-300) to the military. “Wealso have to pay the police,officials from town forestry,agriculture, militias and eventhe narcotic police. So if youhave only a small field, itdoesn’t leave you much af-ter the payments have beenmade.”

In Lashio, farmers say theypaid K 600,000 ($600) pervillage at harvest time. Whilefurther west in Mongngaw,Kyaukme township, authori-ties demanded tax in kind,30% per viss (1.6 kg).

In Panglong, Loilem town-ship, southern Shan State, itis K 150,000 ($ 150) per vil-lage tract, while in the nearbyLangkher-Mawkmai area, In-fantry Battalion # 132 com-manded by Lt-Col Zaw NaingTun had asked for K 300,000($ 300) after advising the vil-lagers “to plant it on the nape(meaning in hidden valleysand hillsides) and not on theforehead (meaning whereoutsiders can see and re-port)”

In Lawkzawk’s Nawng Woe-Kyaukgu-Indaw area, where

Infantry Battalion 292 is su-preme, people were orderedto have a field for the army.“Some soldiers joined in dur-ing harvest and took the sapfor payment,” said a localfarmer.

In eastern Shan State, one ofthe favorite sayings of theBurma Army when a unit hasbeen assigned to patrol thecountryside is, “It's time todraw our pay from the hills.”

The message from the au-thorities is thus clear encour-agement to grow opium.

A Burma Army major in Kehsieven frankly told villagers ina meeting: “Of course, youhave to grow (opium). If youdon’t, you’re crazy. You onlyneed to give us a fair shareso both of us can survive.” q

Don’t say I’m not cooperative

Ceasefire groups that refuse to conform toNaypyitaw’s BGF demand

12

Drug-free Burma by 2014?2015 has been marked as azero drug production year forthe 10-member Associationof Southeast Asian Nations(ASEAN). Burma’s junta, asthe ruler of the largest opiumproducing country in the re-gion, has set its deadline oneyear ahead of Asean’s.

One of the questions ShanDrug Watch had asked farm-ers, junta personnel andbusinesspeople thereforewas: How realistic is the tar-geted year, barely 4 yearsfrom now?

The answers (of respon-dents outside Wa andKokang areas) consistentlyreflected the same message:with the Burma Army on ourbacks, there is no way thatdrugs can be eliminated.

Before the Burma Armycame, shattering peace andthe traditional way of life, therice-cultivating people ofShan State were self-suffi-cient. Not rich, but earningenough to feed themselves,pay tax and enjoy a simplelife.

“If we were allowed to returnto our old ways, putting anend to poppy cultivationwouldn’t hurt us,” said apoppy farmer, who was for-tunate enough to receive amonastic education during

his younger days. “But ourquestion is: can the Burmesearmy, the militias, the policeand government officials livewithout taking from us?”

Both businesspeople andstate personnel interviewedby Drug Watch also agreed.“A junior clerk is paid K38,000 ($ 38) a month and asenior clerk K 48,000 ($ 48),”said an official in Lashio. “Buta bag of rice is K 25,000 ($25) per bag and cooking oilis K 6,000-7,000 ($ 6-7).Moreover, our children going

to school each weekdayneed their pocket money, atleast K 500 ($ 0.5) each.”

A Burmese private earns onlyK 22,000 ($ 22) per month,whereas a Thai private ispaid over ten times thisamount, earning B 8,200 ($250) a month.

During the British days, therewere only 2 infantry battalionsin the whole of Shan State.Today, the Burma Army has

To page 23

13

Lower opium pricesdespite poor harvestIn most parts of Shan State,apart from border areas,prices of opium were re-ported to have fallen from theprevious year.

In northern Shan State, inLashio the price fell from K1,000,000 ($ 1,000) to K900,000 ($ 900) per viss.Similar drops were reportedin Mantong where the pricefell to K 630,000 ($ 630) perviss, and Loimaw K 770,000($770) per viss.

Buyers in Loimaw, wherecultivation was banned in2006 but re-allowed since2008, included ethnic Chi-nese coming from Wa-con-trolled areas, according tosources in Tangyan. TheManpang militia leader BoMon is the one of the mostpowerful figures in the area.

In southern Shan State, dur-ing harvest time in Februaryof this year, the price inNamzang, where one viss ofopium fetched some K700,000 ($ 700) last year,came down to K 500,000($500). “It broke me,” said aresident who left his home tofind work in Thailand, “be-cause after I’d paid all mydebts and dues, including tothe military, there was almost

nothing left for me and myfamily.”

Sources have blamed thefollowing reasons for theprice drop:

q Political instability thatstarted following the rul-

ing military junta’s pressurelast year on the ceasefirearmies to come under thecontrol of the Burma Army.The instability works in favourof buyers, who urge farmersto sell quickly and cheaplywhile they can.

q The fall in the opium out-put due to the adverse

weather conditions. “If theoutput is huge, the buyersdon’t have to spend so muchtime and expense looking forother sources,” one informedbusinessman explained. “Sothey are willing to pay a higherprice. But if the output is

small, expenses increaseand the price has to godown.”

It is only along the Chineseand Thai border areas thatthe price of opium appears tohave increased to as high as.K 1 million ($ 1,000) per vissin the former and up to B32,000 ($ 1,000) per viss inthe latter from B 25,000 lastyear.

However, in the Homongarea, opposite Thailand'sMaehongson province, theprice was down to B 20,000($ 625) in April when itsneighboring areas were thenselling at B 25,000 ($ 760).“It was because we were notallowed to sell to anyone ex-cept the Homong militia (ledby Maha Ja),” a farmer whovisited Maehongson ex-plained. q

Think Piece

Only 24% if the world’s pain relief needs are being metwhile 77% of the world’s morphine and codeine are con-sumed by just 7 developed nations. Yet in Afghanistan,the world’s biggest opium producer, such drugs are al-most completely unavailable.

(The Economist, 8 October 2005)

14

Junta militias stepping into the WavacuumTaking advantage of increas-ing tension between theBurma Army and ethnicceasefire armies led by theWa, due to the former's de-mand that the latter comesunder its control, variousBurma Army-backed militiashave been setting up newdrug refineries along theThai-Burma border.

The Bangkok Post reportedon 20 December 2009 thatsome 50 drug refineries wereactive along the Thai-Burmaborder. Many of these new“factories” that have sprungup are run by pro-govern-ment militias. Seizing theday, Thai entrepreneurs hadlost no time in helping to setup the factories and furnish-ing them with necessaryequipment and chemical pre-cursors.

The best known militias thathave been filling the vacuumleft by the Wa are Punakoand Kya Tey in Monghsattownship and Nampung inTachilek township, oppositeThailand’s Chiangmai andChiangrai provinces. Each ofthem is said to have oneheroin factory in their respec-tive areas assigned by theBurma Army.

“Anyone who wants to growpoppies has to get himself/herself registered with thelocal militia,” said a business-man from Eastern ShanState. “And if any of themneeds starting capital, theywill furnish it on condition thatthe loan is repaid in kind. Thecrop is also not to be sold tooutsiders except those au-thorized by the group con-cerned.”

The “king of kings” amongthem appears to be Punako,led by Ai Long, his youngerbrother Kyaderh and theirbrother-in-law Kya Ngoi. Thegroup first came to the atten-tion of the Thai media whenits drug market cum transitpoint at Maejok, oppositeHmong Kaolang, Mae FaLuang district, Chiangraiprovince, was overrun by theShan State Army “South” on8 February 2002.

Aside from producing andtrading in drugs, the group isalso running a protectionracket for drugs coming fromoutside its territory. “This isnot unlike Naw Kham (who isrunning another racket in theGolden Triangle, betweenBurma, Laos and Thailand),”the businessman remarked.

“Also like Naw Kham, thegroup is also paying kick-backs to the junta command-ers from the local up to theregional command.”

One of the Punako trio, KyaNgoi, is often seen playinggolf with the Military Opera-tions Command (MOC) #14commander in Monghsat.“While the Burmese com-mander has only 4 armedbodyguards, he alwayscomes to the golf course witharound 10 bodyguards of hisown,” he said, “leading to ajoke that he must be seniorto the MOC commander.”

The Wa, meanwhile, are notcompletely out of the game.However, as their move-ments are coming under rig-orous scrutiny by the BurmaArmy, even they have be-come increasingly depen-dent on the militias for thetransfer of their products.

Apart from those mentionedabove, the former ceasefiregroup the Kachin DefenseArmy (KDA) that agreed tobecome a pro-governmentmilitia last year in Shan StateNorth's Kutkhai township andthe Markkieng militia inNamzang, Shan State South,

15

have become the bestknown, especially the latter.

“The shoes (“kep tin”- Shanslang for heroin blocks madeby Markkieng) are compactlike bricks,” said an informedsource in Shan StateEast.“Try dropping one on theground, and it will not cracklike those manufactured byother militias. Sometimes,they are even preferred tothose of the Wa, which arealso of high quality.”

38 viss (48 kg) of standardquality opium will produce 6kg of heroin, while sub-stan-dard opium of the sameweight will produce 4-5 kg,

according to sources. 38viss is the amount one usesfor one large cooking pan.

The yaba, or methamphet-amine, being produced bythe militias is also of varyingquality, depending on howmany pills are produced fromone kg of ephedra (“ma-huangsu” in Chinese) :

Best quality 30,000 pills(such as Tiger“Dimpled”/concave-shaped)

Medium quality 40,000 pillsLow quality 50,000 pills

While the best precursors for

Militias inShan State

Shan State is divided intothree administrative re-gions: North, South andEast. According to a top-secret document leaked inFebruary 2009, in theNorth alone there are 396militias with core strengthnumbering 8,365 and re-serve strength of up to16,320.

16

heroin come from India(acetyl anhydride - in liquidand crystal form) and Thai-land (soda, alcohol, “wuxui”,ether and “longhua”), themahuangsu for yaba comesfrom China. However, asnatural ephedrine is hard tocome by these days, yabaproducers are relying moreand more on pseudo ephe-drine, widely used in cold andcough relief drugs. This

comes from China, India, In-donesia, Malaysia and Thai-land.

The militia units along theThai-Burma border are nowproducing twice as manyyaba pills as the Wa atpresent, according tosources close to the militia.

On 27 March, almost 3months ago, militia leaders

who were attending the 63rdanniversary of Burma’sArmed Forces Day cer-emony were reportedly toldby the Tachilek area com-mander Col Khin Maung Soeon the sidelines: “This is yourgreat opportunity. You woulddo well not to let it slip by. Myonly advice is to sell as muchas you can across the bor-der (i.e. Thailand) but not onthis side of the border.” q

“We are fighting this [war on drugs] for them [the west]. This drug thing is not a big prob-lem in this country.”

(SPDC spokesman Col Hla Min, AFP, 26 June 2003)

“We’re opposed to drug trafficking, but certainly we don’t want the military to go in andattack people and create human rights violations as they had in the past.”(Scott Marciel, Deputy Assistant Secretary of State for East Asia and Pacific Affaire and US Ambassador to ASEAN,

reported by International Herald Tribune, 6 November 2009)

17

Poor addicts face jail,rich go freeThe people in the Mao Valleyon the Sino-Burma bordersay they never knew a drugaddict could be cured locally.In the past, addicts were sentto Wethtikan in lower Burmanear Rangoon, they said.

Then in 1995, two ceasefiregroups the Shan State Army(SSA) “North” and ShanState National Army (SSNA)who were active in the areaoffered to set up treatmentcenters. They went well, butafter a few years, the rulingjunta told the two groups theywere acting out of their juris-diction and ordered the clo-sure of the centers.

Afterwards, there were a fewcenters operating under theauspices of the junta-backedUnion Solidarity and Devel-opment Association (USDA).

In 2007, a UNODC supporteddrug treatment center at NamOom, Muse township, was

completed. It was active fora few years, until for someunknown reason it also wentout of operation.

“We don’t see anything hap-pening there anymore,” saida Lashio resident. “Now someof our friends who have ad-dicts in their families aresending them to a Christianchurch-run center at Nawng-leng village.”

Other users who don’t havethe money to bribe their wayfree if caught, are going to jail,according to other reports.

One example is Sai Long andhis brother Sai Lek (not theirreal names) arrested lastyear after finding 3 yaba pillsand 0.75 gm of heroin in theirpossession. “Had they gotthe money to pay the policeand the judge, they wouldhave got off easily,” said afamily friend. “But they madejust enough money for their To page 24

daily use of drugs, but notenough to bribe, so they got12 years each.”

According to the authorities,had they been caught beforethe 4-nation (Burma, China,Laos and Thailand) coopera-tion agreement became ac-tive, they would have re-ceived a lighter sentence of3-7 years. “You are really outof luck,” one friendly policeofficer told them before theywere taken to Lashio prison.

When they got there, theywere asked K 20,000 ($ 20)for bed and board. As they didnot have the money, theywere beaten and then lo-cated next to the lavatory.They were also required toclean it each day.

It was also found out laterthat prisoners have to pay K500 ($ 0.5) even to take abath.

“The senior general’s mantra has always been: Narcotics harm no Burmese. Drugs harmonly the US and Thailand. So let the Americans and Thais die!”

(Maj Aung Lyn Tut, Military intelligence officer who defected to the West, 15 November 2007)

“History has shown that security and stability are essential pre-requisites for the eradica-tion of poppy cultivation.”

(Leik Boonwat, Affirmative Development Specialist with UNODC,Mizzima News, 14 December 2009)

18

Wa still the whipping boy of theTriangleDrug smuggling has contin-ued unabated through the in-famous Golden Triangle fromShan State into Thailand andLaos. According to Thai andinternational news reports,the United Wa State Army arethe main source of thesedrugs.

On the Lao side of theGolden Triangle, the mainmarket is for heroin. Theprice there was $10,200 perblock (700 kg) before August2009, when the Kokang wereattacked by the Burma Army,causing a drop to $9,800.However, a report in earlyJune says the price has re-turned to $10,200. Most of thebuyers in Laos come fromHong Kong, according tosources.

Drugs entering Thailand aremostly lesser amounts of

heroin but huge amounts ofyaba (methamphetamine).Contact and purchase is usu-ally made at Tachilek, butactual transfers are madewest of the city where theborder crossings are mostlyunguarded or under the swayof the militias on the Bur-mese side.

Protection and transfer fees,according to a militia source,are as follows:

One viss of opiumB 500 ($15.5)

One block (700 gm) of heroinB 1,000-2,000 ($31-62)

One pill of yabaB 1-5 ($ 0.03-0.16)

One kg of Ice (crystallizedyaba)

B 5,000-10,000 ($ 156-310)

“But the rates vary from one

group to another,” he admit-ted.

The increasing numbers ofdrug refineries in the militia-controlled areas close to theThai border mean that drugsentering Thailand are in-creasingly coming fromthese areas and not the Waterritories. Some militia haveeven been producing fake“WY”-stamped yaba pills.

Despite this, most yaba com-ing across the border is stillclaimed to be of Wa origin,according to sources. Rea-sons for this include:

q Wa products are rarelybothered by other rival armedgroups, who fear retaliationfrom the UWSA

Looking at the reports fromfield researchers, the wholeof Shan State minus the10townships already men-tioned and 2 other townships- Pindaya and Ywa-ngan -was still producing opiumduring the last season.(There is even one report thatthe Danu-dominated Pindaya

From page 8

and Ywa-ngan have re-sumed cultivation but furtherconfirmation is still beingsought - Editor).

Still, not all the townships arelarge-scale producers likeNamkham in the north,Panglawng in the south andMonghsat in the east. The

following northern Shan Statetownships were reported tobe small-scale producers:

q Mongkoeq Museq Namtuq Mongmitq Namhsanq Nawngkhio

To page 20

19

Rise of the new “politically correct”drug bossesThese days, formerly notori-ous drug bosses like WeiXuegang are perfectly con-tent just to stay in the back-ground while younger menare taking over the helm.

Wei, for one, who has alwaysshunned the limelight, wasreportedly disturbed by themedia coverage of the con-struction of his Y 200 million($ 30 million) mansion justoutside the Wa capitalPanghsang and quietly trans-ferred it to the Wa CentralAuthority upon completion on8 August 2009.

The newcomers, in contrast,have no such inhibitions.

They include:

u Kyaw Myint-Kyaw HtwePanhsay militia leaders,Namkham township

u Than Win (Chen Shan)Tangyan based top busi-nessman

u Hla Baw T a n g y a nbased top businessman

u Bo Mon Manpang mi-litia leader, Tangyantownship

u Lieng Hsai Markkiengmilitia leader, Namzangtownship

u Naw Kham Leader of theprotection racket on theGolden Triangle

u Yishay Nampong militialeader, Tachilek township

u Kya Law Bo Loikhai mi-litia leader, Mongpiangtownship

u Kya Hay Tanghseng mi-litia leader, Monghsattownship

u Ai Long and Kya DerhPunako militia leaders,Monghsat township

u Kya Ngoi Mae Jok mili-tia leader, Monghsattownship

As for Kyaw Myint, KyawHtwe, Bo Mon, Naw Khamand Yishay, Drug Watch hasalready introduced them toreaders in our previous re-ports.* There is not much toadd about them except forNaw Kham, who made theheadlines again for the thirdconsecutive year with the

shoot-out on 20 February2010 on the Mekong that left13 policemen dead and 2wounded.

A “hot pursuit” was launchedafterwards by the Burmesesecurity forces but to date,Naw Kham, also known asthe Godfather of the GoldenTriangle, is still at large. Heis reportedly close to both theBurma Army and its militiasin the area and his influenceis such that his house andland in Tachilek, confiscatedby junta authorities since2006, still have no buyers.

The rise of the new militialeaders as drug bosses ismainly thanks to the resis-tance of the ceasefiregroups, once the regime'sfavorites, to the Border GuardForce (BGF) program, de-signed to place them underthe direct control of theBurma Army. It is also a re-ward for the militias’ “politicalcorrectness,” that is, thegroups’ continued allegianceto the regime’s political ob-jectives.

As a result, territories as-signed by the regime to thesegroups have been servingmulti-functions in the drugtrade: as markets, transitpoints, storages, staging ar-Kyaw Myint

20

eas and production centers.

Understandably, militia forcesthat have territories along theinternational borders arewealthier than the rest. How-ever, the down side is thatthey are also better known tointernational drug enforcers.

Among the newest faces, thebest known appears to be ColLern Hsai aka Lieng Hsai akaSai Lu, leader of the MarkKieng militia, in Namzangtownship. A native ofMongpiang and a former of-ficer in the Mong Tai Army

Tachilek stumbled upon atruck carrying more than 750kg of heroin. Initially, the fin-ger of suspicion was pointedat Wei Xuegang andZhousang, of the Nayai mili-tia, (both of whom categori-cally denied involvement)and then at Chen Tafa, 46, aKokang from Nakawngmu,Mongton township, oppositeChiangmai, who was laterfound to be a middleman.Further reports confirmedthat Lern Hsai was one of themasterminds of the consign-ment.

(According to Gamani, an in-dependent writer fromTaunggyi, the Tachilek drughaul climaxed in the “suicide”of the wife of Lt Col MaungMaung Myint, Taunggyi-based Eastern Regioncommand’s Staff Officer G-1 (Grade 1). “She was actu-ally murdered to hush up theinvolvement by the regionalcommander, G1 and the Mili-tary Affairs Security officerCol Win Bo. According to aninsider report, Saya Kyaungaka Aung Ko Win and DeputySenior General Maung Aye,who are the two main shareholders of Kambawza Bank,are also directly involved inthe drug trade to make up forthe plummeting in the bankprofits. And according to astory coming from Taunggyi,the attack on Kokang (in Au-gust 2009) was a diversion-ary attack designed to divert

From page 18

(MTA) that had surrenderedin 1996, he has until latelybeen overshadowed by otherformer colleagues such asZhousang of Nayai, Bo Monof Manpang, Maha Ja ofHomong and Yishay ofNampong.

He came into prominencelast year when authorities in

Lieng Hsai aka Sai Lu

attention on the generals’drug scandal from PengJiasheng and his people.”)

To no one’s surprise he wasroutinely questioned but laterlet off, being one of the “po-litically correct” persons.

It was not clear what hap-pened to the drugs seized.But on 3 November 2009, theDemocratic Voice of Burmareported that around 15 po-lice officers in Shan Statewere arrested after allegedlysubstituting seized drugs forfake ones.

* - Finding Neverland: Thestory of Yawngkha (2005),P. 204

- Hand in Glove: The BurmaArmy and the Drug Trade inShan State (2006), P. 42-48

- Shan Drug Watch (2007),P. 16

Pho

to :

SH

AN

q Wa products are fa-vored over others’ and fetchhigher prices

q When caught, sayingthe consignment comesfrom the Wa prevents toomany probing questions

q Seizure of productscoming from the Wa ratherthan from others lesserknown is a much neededbooster to a drug buster’sreputation

21

Yaba flooding Shan StateA native of Pongpakhem,Shan State, 10 miles north ofthe Chiangmai border, re-cently told Drug Watch: Tenyears ago, it was really hardto find a yaba-user here. Nowit is very different. It's hard tofind people who don’t use it.

In 2003, Thailand launchedan all out war on drugs caus-ing a flowback of millions ofmeth pills stranded on theborder. “At first, users said itwas good for a person aftera hard day in the fields,” hesaid. “Now even the police-men and the soldiers are us-ing them day and night.”

Yaba is all the rage amongyoung people, particularlystudents. The slang for yabais “baw long” (Burmese forfootball), no doubt as muchfor its round shape as for the“kick” from using it.

Suppliers include officials,especially those responsiblefor law enforcement.

q In Lashio, Police SgtKhin Zaw Moe of # 2 Po-

lice Station is a known druguser and supplier. His retail-ers include U Aung Tin andDaw Nang Mya of 12th Quar-ter, who receive K 100,000 ($100) monthly payment fromhim.

q In Kengtung, Maung Win,a durwan (watchman) of

Nawng Pha primary school,Quarter # 5 is selling yaba tostudents for a drug police of-ficer. The neighborhood haseven informed the local po-lice, but no action has beentaken against Maung Win andhis wife.

Everywhere in Shan State,the story is the same: Yabais no more a novelty but anew culture. You only needmoney and money will takecare of ev-erything.

Prices how-ever are notthe same.They varyfrom placeto place,from qualityto qualityand frombrand to brand: K 900 ($ 0.9)to K 5,000 ($ 5) per pill.

WY is of course the mostpopular brand. That's why ithas a lot of forgeries. But atthe same time, it is not hardto differentiate the fake fromthe original. The original WY:

q has a pleasant smellq produces less smokeq tastes betterq soothes one's throatq has a swift effect on the

user

But last year, even TigerTo page 23

“Dimpled”, regarded as thebest WY and manufacturedin the Wa-controlled areas,became a casualty ofBurma's volatile politics.

The cause was the invasionof the Kokang area by theBurma Army in August 2009.The effect was a rush tomove stockpiles and cutlosses by the investors. As aresult, prices took a suddenplunge:

Ice B 1 million / kgto B 700,000

Heroin $ 10,200 /blockto $ 95,000

Tiger B 51 /pill to B 45

But since then, prices havebeen steadily on the rise.Quality Ice is getting B 1 mil-lion ($31,250) again and Ti-ger “Dimpled” costs B 47($1.5) per pill, but this is still4 baht down from last year’sprice, as it is facing stiff com-petition from the newcomers.

22

Crop substitution for whom?In 2004, a Chinese firmsigned a contract with one ofthe ceasefire groups on theborder, Mongla-based Na-tional Democratic AllianceArmy - Eastern Shan State(NDAA-ESS), to set up asugar factory in Mongyang asan opium crop substitutionproject. The company wouldnot only grow its own sugar-cane but buy it from the localpeople.

Accordingly, the order wentout from the NDAA’s 369thBrigade for each householdto start planting sugarcane.At present, there are about100,000 “mou” (17,000acres) of sugarcane fields inthe areas under the controlof the 369th: some 60% ofthem are being worked bysome 1,000 households ofChinese farmers and the restby local farmers.

At harvest, the companypays Y 180 ($ 25) per ton tothe Chinese farmers but Y150 ($ 23) to the Shan farm-ers. The rationale is that theChinese farmers are re-quired to pay rent to the NDAAfor the use of land.

The Shan farmers are nothappy about this. “Each yearwe work very hard,” said avillager from Hsaleu. “But af-ter the expenses, the net

profit is only a little over Y1,000 ($ 138). That’s not fair.”

This year, a new project wasannounced by Mongla au-thorities: coffee. The seedswould be distributed to each

rest of the year it’s corn, po-tatoes or sweet potatoes, forthose who are lucky.”

In Wa, it is the same. “Grow-ing rubber is only better thangoing hungry,” an ex-poppy

household that was requiredto grow at least 1 “mou”.

“First, sugarcane, now cof-fee,” complained a villager.“And nobody has told us howmuch I can expect from 1mou of coffee,”

In Kokang, the rubber projecthas yet to bear satisfactoryfruit. The buckwheat projectintroduced by Japan is a fail-ure. “Most of the ex-poppyfarmers are eating rice onlyfor 3 months a year,” a Shanbusinessman, who speaksChinese, reported. “For the

farmer said. “But my familyis breaking up, because assoon as they reach puberty,my children are leaving us.My only consolation is theknowledge that I’m not alonein this.”

This is a sample of what’shappening with crop substi-tution programs in theceasefire areas, whose ex-istence depends, to a con-siderable extent, on thegoodwill of China.

Outside the ceasefire areas,the situation is no better. In-

Pho

to :

SH

AN

Rubber plantation along Nam Kha river near Pang Hsang,the Wa capital

23

deed, in many places it isworse. For one thing,people’s lands are confis-cated for so-called crop sub-stitution schemes. For an-other, they have to becomehired hands or free laborerson the projects or leave whatused to be their homeland.

In Mantong, 2,000 acres ofland were confiscated in2002 to be sold to Mandalay-based Inwa DevelopmentCo. for its sugarcane project.The former owners of theland faced the choice of ei-ther becoming monthly wageearners on the site, at K36,000 ($ 36) a month, orleaving.

While in Namkham, pro-juntamilitia leader Panhsay KyawMyint, known for the exten-sive poppy fields under hisprotection, has started apomelo orchard on theNampaw river and a rubberproject between Wiangkangand Kawngkard, both sup-posedly crop substitutionprojects. The problem is thatthe former owners plantedtea and poppy fields hadnever been seen.

“I really don’t know what theauthorities are up to,” onefarmer from the Namkhamarea told Drug Watch. “Butwhatever it is, it has nothingto do with our (the people’s)welfare.” q

Another drug, Khakhu orYapantawng, a mixture ofopium and dried bananaleaves or pennywort(hydrocotyle asiatic), is alsoa hit among wealthier people.Mild and soothing, smoking itrelieves the rousing effects ofyaba and can put one tosleep, claim sources.

“Even police and military of-ficers, returning from patrols,are asking for it,” reported asource from Mongton, oppo-site Thailand’s Chiangmai.

From page 12

more than 150 infantry bat-talions in the same area, notcounting supporting units.

“There are only two choicesfor us if we have to continuesupporting the Burmesearmy and their officials.” saida farmer from Namkham.“We either go to China orThailand to find work andsend back money, or wegrow poppies.”

The income from opium isseveral times that from othercrops, according to the farm-ers from different parts ofShan State:

u Namkham,Shan State North 5:1

u Homong,Shan State South 3:1

u Mongpiang,Shan State East 4:1

“If the government reallyacted like a government tous, like a parent caring for thewelfare of his/her children,” afarmer in Lashio told DrugWatch, “the problem shouldbe easily resolved.”

But with no end in sight to theregime’s military expansionin Shan State, the problemwill inevitably persist. Afarmer from Mongpan, south-ern Shan State, put it suc-cinctly: “An opium ban won’tlast long if the soldiers stillneed us to feed them.” q

Ketamine and Ecstasy, how-ever, have been heard spo-ken of but not seen used byany of the sources. “Ya-K(Ketamine) and Ya-E (Ec-stasy) have yet to becometrendy in Shan State,” wroteone of the Drug Watch datacollectors.

Other reports indicated how-ever that as yaba is quite ex-pensive, some people areturning to cheaper drugs,such as opium, heroin andeven glue. q

From page 21

There are 3 types of cells:common, special and iso-lated. The two brothers haveno idea how much the in-mates occupying specialcells have to give the prisonauthorities. But they heardthese people could even con-tinue to indulge in drugsthere.

The two brothers’ plight was

Drug smugglers using ever new tricksCaught by relentless law en-forcers time and again, drugsmugglers have to keep in-venting new tricks to stayahead of the game, accord-ing to informed sources onthe Sino-Burma border.

The most well-known is toencase heroin - it is almostalways heroin - inside thelogs crossing the border fromBurma into China. “But suc-cessful smugglers neveremploy the same tricks morethan twice,” says a 60-yearold Shan businessman whospeaks Chinese and is wellversed in the Chinese way oflife.

According to him and others,drugs have been carried in:

2001-2002 water melons2003 pickled bamboo

shoots2004 scrap iron

2005-2006 coal andcharcoal

2007 dry tea leaves

“In 2008, some smugglersbegan buying newborn in-fants from poor families, say-ing they were childless andwished to adopt them,” saidthe Chinese-speaking Shan.“They usually paid Yuan5,000-6,000 (US$ 780-930)per child.”

The infant was then disem-boweled and filled up withdrugs, administered disinfec-tants and perfumes to hidethe stench, and carriedacross the border. “Like othermethods, it was quite popu-lar for a while,” he said. “Butthe police later got wise to it,and it had to be abandoned.”

The latest technique em-ployed last year was to insertthe drugs inside the bowels

using oiled condoms made inThailand “because they arethe slickest,” according to asource from Mongla. “Onecan carry half a kilo to one kiloin this way.”

In February, officials fromMongla-based NationalDemocratic Alliance Army(NDAA), caught 35 womentransporters before crossingthe border into XixuangbannaDai Autonomous Prefecture.The women told the officialstheir destination was Simao,north of Jinghong (Kenghungin Shan).

“Since then, we haven’tcaught anyone carryingdrugs this way,” said an offi-cial. “But it doesn’t mean thatthe smugglers have run outof tricks. Right now theymust already be using newermethods.” q

From page 17

Previous SHAN publications on the drug trade in Shan Stateavailable at www.shanland.org

eased when prison authori-ties later discovered that theywere educated. One becamea tutor for the children of theprison officials and the othera computer typist. Theirwages were of course expro-priated by the prison person-nel, but their treatment im-proved. Besides them, therewere also gardeners, tailorsand sculptors in prison whose

talents were similarly usedto supplement their warders’meager income.

Meanwhile those who werecaught with drugs for salewere able to stay out of jailby paying K 70-100 million ($70,000-100,000), said onereport. q