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CHINA MOVES ON MYANMAR
Part 3: The opium capital of the world

By Iris Tsang

Part 1: PLA masses on the border 
Part 2: Casino town loses out

HONG KONG - Well before the capture of Hambali, a top terrorist who had been suspected of hiding in Myanmar, the United States had already listed this Southeast Asian country as one of its anti-terrorism fronts. In a Senate hearing early last year, Randy Beers, assistant secretary of state for narcotics control and law enforcement, and US ambassador-at-large for counter-terrorism Francis Taylor alleged for the first time that the guerrilla United Wa State Army (UWSA) in northeastern Myanmar - part of the Golden Triangle - was not only composed of drug traffickers but terrorists.

Myanmar's neighbors China and Thailand have long kept a close eye on Wa state. During the Chinese military buildup along the Myanmar border that started on September 9, Ruili, the main port linking China with the state, was a focus of the deployment. Although the flow of narcotics from Myanmar into China is a serious problem for Beijing, the People's Liberation Army's interest in Wa state is not just about security. China has long had a special relationship with the region.

Meanwhile, the United States and other countries are on high alert because the state is known as a base for drug manufacturing. In 2002, US satellite surveillance found that poppy fields had grown fivefold in the state. Then the US government warned Myanmar that the military option would not be ruled out unless Myanmar took effective measures to fight drug trafficking in its part of Golden Triangle.

Indeed, Myanmar is a big name in drug manufacturing and trafficking. According to the annual report of the United Nations Commission on Narcotic Drugs (CND) in 2002, Myanmar is the world's largest opium producer, and its output accounts for 50-60 percent of the global total.

Behind these figures, Wa state has played an indispensable role in the regional drug business of the Golden Triangle. According to research of the CND, the US Central Intelligence Agency and renowned narcotics researchers in China, opium output of the state represents 70-80 percent of the total from the Golden Triangle. Experts hold that Wa state's drug production plays a leading role in the triangle, and that is why it is always in the limelight.

While it draws close attention from the outside world, Wa state also enjoys special status inside Myanmar. Its legitimate name is Special Region 2 of Shan State of the Union of Myanmar. In several rounds of negotiation with the government since 1993, representatives from the region insisted on the name "Wa state" and turned down such terms as "special autonomous region" or even "special region at state level" suggested by the government. But as states of the union enjoy some degree of autonomy under Myanmar law, Yangon refused to grant the "state" designation. However, people inside "special region" continue to refer to their homeland as "Wa state".

Wa state's tough stance against the central government is backed by strong military force. UWSA has regular army troops of some 18,000, most of them among several guerrilla forces in northern Myanmar. In 1996, Wa state initiated attacks, in the name of "eradicating the globally largest drug group", on the Mong Tai Army (MTA) of the notorious drug lord Khun Sa and finally forced him to surrender to Yangon.

After Khun Sa's capitulation, the government started to turn its efforts against the UWSA. Internationally too, dark clouds began to loom over the Wa army.

Kobsak Chutikul, deputy leader of Chat Thai party, wrote that "the US should not rule out [the] military option in the fight against one of the world's largest drug armies, operating freely along the Thai-Myanmarese border" and "surgical air strikes against the Wa Army would be in line with the emerging world order".

Then in March 2002, the Bangkok Post reported that Beers and Taylor, testifying before the US Senate, had defined the UWSA for the first time as "an infamous terrorism group with close ties to global drug trade". The move was interpreted as a precedent, the first time the US had treated a drug group as a terrorist organization.

On March 20, 2002, Myanmar Foreign Minister Win Aung protested against the US criticism, and Washington backed down somewhat. Priscilla Clapp, US charge d'affaires to Myanmar, said: "We do not view the United Wa State Army as a terrorist organization." She said Washington regretted that categorization and had dropped it.

But the damage might have been done. Possibly because of fear of war, the population of Panghsang, the capital of Wa state, has dropped dramatically since then from more than 20,000 to about 10,000, and the floating population from more than 10,000 to several thousand.

The Wa state government has promised to make the region opium-free by 2005. But with only two years left before that deadline, most farmers still make a living by poppy cultivation. Despite the government's huge investment on cassava seeds, sugarcane and pig feed in the hope of fostering alternatives for local farmers, stagnant market demand, low prices and farmers' lack of knowledge about products other than opium have stalled the program.

China, together with other nations and organizations, has offered a helping hand in funds and technology and has even sent professionals to support Wa state in its anti-drug cause. China's police forces have held numerous joint raids with their Myanmar counterparts against drug traffic. In the joint anti-drug actions from November 2001 to January 2002, Liu Ming, a major drug trafficker, was shot dead, which was a severe blow to the Ko Kang drug cartel. Another major trafficker named Liu Quan was netted in a May 12, 2002, raid and later repatriated to China by Myanmar police.

Wa state has found an alternative subsistence under the auspices of China. Yunnan province has waged an array of drug-fighting programs there, including the erection of the Nankajiang Rubber Factory where local farmers plant rubber trees instead of poppies, their single livelihood in the past. The factory is funded by Regiment 2518 of UWSA and technically supported by Yunnan. Wang Ping, the standing manager, is a Yunnan person who came to the factory as a Chinese technician in 1997. Wang said China has promised to purchase as many rubber products as possible.

In effect, the liaison between China and Wa state may be more than just an alliance against drugs. Panghsang, only two kilometers away from Yunnan's Meng'e Port, looks like a beautiful Chinese town, where Chinese characters appear in fascias everywhere and Chinese has been the spoken language.

Intimate bonds have been built between China and the supreme authority of Wa state, such as Zhao Ni-lai (general secretary of the United Wa State Party and honorary chairman of the Wa state government), Bao You Chang (commander-in-chief of UWSA, chairman of the Wa state government and minister of finance), Li Zi-ru (vice commander-in-chief of UWSA and Standing Committee of UWSP), etc. These top-ranking officials, of Chinese origin, received early education in China, which they have frequented for further studies and visited many times after joining the Communist Party of Myanmar, thus infusing themselves with Chinese culture.

Towns such as Panghsang and Namkham have figured prominently in the coverage of the anti-drug campaign in mainland press. Revealed in myriad investigative reports, these exotic towns have become widely known among the Chinese. De facto, Wa state is a colony of China, which although it claims no sovereignty over the region, manipulates unparalleled leverage in the local politics and economy.

This is the conclusion of this series.

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Nov 26, 2003



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