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operators were able to get small shipments out of Laos-but not much."
What is not clear is by what authority Ouan continued to regulate opium transactions in Laos after the Prime Minister had rescinded the order banning opium transactions in 1964.
Whatever the circumstances there is no doubt that by 1967 Quan Rathikoun knew more about the narcotics business in Laos than prob- ably any other Government official.
For Ouan's own assessment of the opium situation in Laos, see ap- pendix A and appendix B.
During this same period, Royal Lao Air Force aircraft were used to transport opium throughout Laos, with the approval of General Quan. Quan has written that in 1966-
After being told by some of the Air Force officers about their poor living con- ditions, I decided to allow them to transport goods on the condition that the transportation must be organized and made under only one chief's orders; there must be no transportation of private goods for any officer of the Air Force; the transportation must occur in the Kingdom of Laos only; there must be no trans- portation of goods outside the Kingdom of Laos; and it must be the duty of the merchants themselves to transport goods outside of Laos.
Seventy percent of the income from this activity went to the Air Force, 15 per- cent to the pilots, 10 percent to those who worked on the ground, and 5 percent to the mechanics.
At the same time, I contacted the U.S. Government asking it to aid the Air Force. I told the U.S. Government that if the Air Force was given aid, it would stop completely the transportation of opium. [Italics added.] My request was considered by the U.S. Government. Later, in 1969-70, the U.S. Government sent its administrative experts to investigate. After their three-month investigation, no change was made. Later, in 1971, the U.S. Government began to pay sufficient per diem to pilots. At the present time, the U.S. Government still pays them per diem.
According to the Department of State, the United States does not pay per diem to Lao pilots. Combat pilots do receive a small pay- ment per combat mission. A representative from the Department of State indicated that the United States makes no direct payments in Laos. U.S. aid is placed in the Lao Defense budget and is disbursed by the Lao Government.
Quan claims that the Royal Lao Air Force stopped transporting opium in 1971. The Survey Team was told that Lao Air Force pilots are still involved in the smuggling of opiates throughout South- east Asia.
U.S. officials state that there is no evidence of this. They do not dis- count the possibility, however. According to one U.S. official in Vien- tiane "there are a number of Air Force officers suspected of smuggling narcotics at the present time."
Quan is not the only high ranking Lao official thought to be in- volved in the smuggling activities, particularly opium, arms, and ammunition. There have been rumors that the other government offi- cials are also implicated. Again there is "no hard evidence."
In addition to the smuggling of narcotics, it is likely that Lao mili- tary personnel are also involved in the arms traffic. As noted else-
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