TNAG-0414-FCO40-460-Review-of-narcotics-problem-in-Hong-Kong-1973 — Page 171

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where in this report opium is used to obtain arms, cash, and other necessities by the dissidents and other groups that operate in Burma, Laos, and Thailand. One U.S. official observed that some high ranking military officials in Laos may be trafficking in munitions.

While there is no proof that high ranking Lao officials have been or are involved in smuggling activities, the fact that opium has been produced in Laos and smuggled into the country from Burma on Lao aircraft with the support of at least one high ranking official would tend to bear out the allegations that there was official in- volvement before the law banning opium transactions was passed in 1971. U.S. officials in Laos indicated that there is no evidence to prove that Gen. Ouan Rathikoun and others are implicated at the present time.

The questions that remain unanswered are the nature of the role of Quan and others in supplying heroin to United States military forces in South Vietnam and, if they were implicated, with whom were they working in South Vietnam?

The answer to these questions may never be known.

UNITED STATES-LAO COOPERATION

In spite of the possibility that several members of the Laotian National Assembly, and other military and governmental officials, may be implicated in narcotics smuggling, it is the opinion of U.S. officials in Laos that the Government there is serious in its efforts to detect and prosecute violators of the anti-narcotic law.

To support this conclusion, U.S. officials cite a number of exam- ples. The establishment of the Groupe Spéciale d'Investigation (GSI), passage of the first comprehensive anti-narcotics law in the history of Laos, the prohibition which has been placed on the importation of acetic anhydride (an essential chemical in the production of heroin), and the demonstrated willingness of the Lao Government to allow U.S. narcotics agents, Customs personnel, and other U.S. officials to advise and train Laotian narcotics enforcement personnel are the most prominent. BNDD agents work closely with GSI, and the Lao Govern- ment has requested U.S. assistance in improving their Customs Service. In addition to the close working relationship that has been estab- lished between BNDD agents in Laos and the Group Spéciale d'In- vestigation, other American advisers from the Agency for Interna- tional Development (AID) work closely with their counterparts in the National Police.

Successful interdiction of narcotics also depends upon effective customs inspection procedures. The U.S. Bureau of Customs is assisting Lao Customs with a program which it is hoped will result in increased seizures, especially along the Mekong River in the Golden Triangle area. As a part of this program, U.S. Customs has implemented a "cus- toms to customs" exchange to help Laos develop an effective customs force capable of enforcing customs law and anti-narcotics laws.