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1. I spoke on 9 November with the American Vice- Consul in Chiang Mai who has responsibility for Burma. The following points emerged in the conversation:
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i.
The KMT Generals Lee and Tuan are still being used by the Thais in counter-insurgency operations on Doi Luang and in other parts of East Chiang Rai. If this operation went wrong and there were signs that it might, then given the fact that the KMT were becoming an increasing political liability this would have adverse effects on the careers of certain Thai Generals (Kriangsak etc).
ii. The Burmese Army three divisions strong had
two divisions committed to fighting the White Flag and although they had fought well and won some victories it seemed that they just could not cope. They could have had weapons from the Russians and from the Americans but their neutrality had led them to refuse and it was now too late: The BCP White Flag are now about 25 miles from Keng tung as opposed to 60/70 miles last year. It was possible that Kengtung would be surrounded by the end of the year but unlikely that it would actually fall. This advance was designed more to stop the operations of the Taiwanese IBMND than to undermine the position of the Burmese Government as such. General Ma previously in control of this operation had now retired or resigned but his successor was still over-active. It was unlikely that the IBMND operation was any more acceptable to the Thais than it was to the Burmese and particularly since the change of government.
iii.
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Jimmy Yang had disappeared from the Rincome Hotel. It was widely rumoured that he had "gone off to fight the war" but it was less clear which war he had gone to fight, His future at the Rincome was not bright. Since his disappearance Ferrari the Manager had said several times that if he could find Jimmy to fire him he would. was asked whether HMG had finally given Jimmy Yang the passport he had requested from HM Consul in Chiang Mai. I said that we had strongly advised HM Consul not to have anything to do with Jimmy Yang. If he had applied for a passport, the application would doubtless have been refused.
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DO 897261 230443 SCOM 5/72 GM 36×3/2