TNAG-0414-FCO40-460-Review-of-narcotics-problem-in-Hong-Kong-1973 — Page 117

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of the illicit narcotics trade to solve their problems of course would be unreasonable. The cost would have to be borne by those countries mainly affected by the opium products of

'The Golden Triangle', which in practice would probably mean that the main burden would have to be shouldered by the United States. This could be done on a reimbursement basis behind the scenes, the Thai Government overtly conducting the whole operation.

40.

That narcotics traffickers serving the international markets would endeavour to evade the compulsory purchase require- ments of an opium monopoly must be anticipated. Undoubtedly they would offer higher prices for drugs than the monopoly which would ensure the continuance of an illicit traffic to some degree. However, basically it is against human nature to do illegally what can be done lawfully. The tribesmen who produce opium are only concerned with selling their opium as a cash crop. Provided the prices paid by the nonopoly were reasonably in line with the black market price, and law enforcement measures were rigorously applied to those breaking the monopoly law, it is believed that a very substantial amount of the narcotic drugs produced in this region could be removed from circulation at or near the source.

41.

The idea of a Thai Opium Monopoly outlined here represents only the framework of what would be a major operation to organise both diplomatically and at ground level. Such a measure would need strong American support from the outset other- wise it would be very unlikely to succeed. But notwithstanding the difficulties, it is suggested that the idea should be pursued, initially by taking it up with the United States Government. It is essential to adopt a substantial scheme such as this outside the limited field of law enforcement, but working in harness with the law enforcement effort, if the core of the illicit narcotics trade affecting Hong Kong is to be excised and within a reasonable period of time. The application of an opium monopoly to Laos will also require consideration should it prove possible to bring such a project to fruition in Thailand.

The position of China

42.

For many years allegations have been made in various quarters, notably in the United States and Tai Wan, that China is involved in the illicit narcotics trade and that as a matter of deliberate policy is exporting opium and heroin with the object of poisoning the West in particular and non-communist countries in general. There is no evidence to support this contention, in fact the reverse appears to be the case. While there may be some smuggling of opium by tribesmen across the Chinese frontier from Yunnan Province into Burma and Laos where the border is mountainous and wild, there is nothing to suggest that this is done with the connivance or concurrence of the Chinese Government. It would be quite contrary to the high standards of morality displayed by Peoples' Republic of China. to be involved in the illicit international drug traffic.

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