OCR
ték - page three to an official poliey of pushing rapidly ahead the opium produc= t4on. This policy is carried out with the grpabest energy, despite the pious declaration of the Paiping R gime fesued on Mare re 1951, in which the Regime, in answer t8 international criticism, deelared that 16 nad achieved " huge success" in the fight on Opium, naturally without giving any sort of facts. The reason for this in= erease in production - an inerenase which’, arcording to our obser= vers, will be even, barring a bad harvest, much more spsctasniar in 1953 - is two fold t first, that this production ia giving the Red regimes a very large sum in hard cyrrency in order to make illegal purchases of strategic materials ; second, beceuss in the opinion of the top men in the Red regimes, 4% is a good way by the same token to demoralize the free regimes. This latter point seems far fetehed, but our observers insist on 4% very strobaly. But production is not all. The main Gifficulty of the matter is the marketing and selling of the gods. Ané. here, the organigation of the China Russia Opium Pool is becoming outstanding. The main outlet 18 today Burma. Since the Burmese Governement has become tolerant of Red Chinese operations, a large number of Export= Import and other similar ergonizeations have been ergenized in Akyab, Rangoon; Movimein and Tevoy, There are sone rfiner one's tn other tows, but they are without 4mportance, These offices, corporat ions or counters are in many instances headed by Chinese Nationealiats, ox people posing at that. They official iy trade very broadly with Tndonesia and Indias They really trade, Bul the bulk of their bussiness is to 8811 to Red China the essontial stretegic materials which then reach them via tho Burma road, from the proseedse of the Opium, which from these places goes ite way. Cut of Burma, the Opoum or ite derivates goes mostiy to India, indonssta but also in minor gtentities to Indchina, Siam and even Hong-Kong. From there gtill through the same organizations, 4% 19 shipped in large quan= ¢4ties to Gentral and Cpribbean America, anc. hence, mostly illegally via Mexico or ¢land estinely via the Geribbean, to the United Stetses, the main goai of these axporta. The tnberesting part of the whole machinery is, that all the way the organization for the distr& bution of Opium is alco used for the purchase of rare atrategic materiel, which in almost atl instances is the raturn freichtd sp to speak. And that furthermore, from the Burma counters dom to the distributors, the whole organization is financed and its operating capital provided by the Red Governements. The Capital is very great part in these operations, and has been sometimes 2 weakness when the Narcotics trade was stiil in the hends of private people. The fact that the present Narcotics ring has no problems on that account, gives the machine added strength end operating facilities. Our observers make two points of importance 3: While the Red Narcotics Ring 18 already by far the strongest in the World today, it is still expanding, especiakity with the expanding of AS.