23
During the Survey Team's visit in Rangoon, it was learned that the Burmese Government had recently inquired about the possibility of a soft loan of $2.5 million to finance the purchase of some U.S.-made earth-moving equipment for irrigation projects. After relaying this request to Washington, the Embassy in Rangoon was told that such a loan would require authorizing legislation.
Upon returning to Washington, the Survey Team was advised by U.S. AID officials that new legislation would be needed because U.S. AID does not have a commercial credit capacity in countries where there is no existing U.S. AID country program. (It is noteworthy that the Japanese Government has such a capacity for the purpose of pro- moting Japanese export products.) According to the Department of State, the Government of Burma indicated that if its initial request was honored it would be interested in increasing the amount of the loan request to $10 million.
Such a request would provide an inexpensive "foot in the door" where the United States now has virtually no influence. While this type of relationship with Burma would not directly affect the ability of the United States to encourage Burmese cooperation in narcotics control, it could provide a starting point for meaningful negotiations on the problem.
In the absence of positive leverage in Burma, there is very little that the U.S. Government can do about internal Burmese opium pro- duction short of taking unilateral action to disrupt the operations of those elements involved in the opium trade.
Fortunately, this situation does not exist in Laos where that Govern- ment is cooperating with the United States in programs to control the illegal production of and trafficking in opium, morphine, and heroin.
LAOS
POPPY GROWING IN LAOS
Northern and western Laos are the traditional poppy growing areas because of climate and the fact that opium has been the only certain source of cash for the Meo and Yao hill tribes, who produce it. Because of the military successes of the Pathet Lao and the North Vietnamese, opium production has been reduced significantly, primarily because the Meo tribes have been forced to evacuate their historic homelands. Since the Communists now control most of the traditional poppy growing areas of Laos, little is known about current opium production in that country. The Department of State estimates that production may be about 30 tons per year, a substantial reduction from the 100-150 tons thought to have been produced annually in the 1960's. Narcotics officials believe that almost all of the opium now being produced remains in that country. Laos, however, is à conduit for opium coming out of Burma for further smuggling to Thailand and through Laos to other parts of the world, including to the U.S. serviceman in South Vietnam.3
a
The G.I. market in South Vietnam, which reached its peak during the period 1970-71, has shrunk considerably due to the large scale withdrawal of U.S. troops.
Page 165Page 166