4. For some years the Thai Government pursued a policy of trying to get the KT to leave Thailand but it appears that this policy has now been abandoned. In this context the most important single event was the burning in Chiang Mai in February 1972 of 26 tons of opium which was purchased from the KT for 20 million Baht. It subsequently became known that General Kriengoak, the Deputy Chief of staff, Suproae Command who is in control of nont of the Thai Governments dealing with the KT, had fixed up a deal whereby the KIT would be given money and some land tenure security
At the time in return for a promise to get out of the opium trade. it was hard to imagine that the KT would get out of narcotics, that would be like ICI getting out of chenicals, but 15 months on it 18 clear that while the KT has not movered its connection with narcotics,
Clearly the deal requires they are diversifying their activition. good will on both sides for it to work but in the finul analysis the Thais are probably wiable to shift the KWT militarily and equally the KIT really have no-one else to turn to cxcopt the Thai Government and nowhere else to go except Thailand. It seems that the KMT want to become Thai citizens if not for themselves at least so that their children can be educated and have an opportunity to enjoy a moro settled life. One might have thought that it was financially much more rewarding to trade in opiwa tian to be a former but the real profits on narcotics are not being made by the XIT, certainly not by the average soldier. AB Comeone said to me, if you have the choice between being a poaceful former and taking a string of bad-tempered mules over the border into Burna in' the wet season and bringing them back while other people try and shoot you to get the opium then a reasonable man might choose the farming. After all, the IT are not being asked to becone paddy Taracro, they are being given the
In many wO78 opportunity to bocone legitimate rerchant Turners. they will have less problem in finding markets for their products than any other group in the hills because the KKT intelligence network hns for years depended on a system of law traders spread around the
There villages of the North with connections in the bigger cities. are two indications that the Thai Government in trying to keep itu side of the bargain: five months ago the King opened a new connery It in Daan Yang, Fang district as part of the hill tribe project. may be an expression of Prince Biondej'a business acumen that he has nited the cannory in the chief EMT support village because he nouumes they are the only people cfficient enough to run it and it may be that the two roads which Alb are to build this year connecting nan Yung with other villages in the district are also to be built with the hill tribep in mind but I think at the very lengt it is a move by
Becondly, the Thui Government to kill two biras with one stone. Gonoral Kriengoak has been engaged in helping the KIT invest Bone of their 20 million Zaht in tea plantations, which in politicully quite n good nove although it is hard on the northern miang (fermented ten) industry which is already in decline no tastes shift away tovarún Coko etc. of course there is something more in the deal for the Thai Government than just the crcation of a Chinese controlled tou industry in the liorth. The K T have been used by the Thais to fight the
To the best of insurgents at which they have been quito successful.
Tunn and knowledge they are still being so used in East Chiang Rai.
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