-Caveat Lector-

"To this day American defense contractors are the biggest drug-money
launderers in the world."

Dave Hartley
http://www.Asheville-Computer.com/dave

-----Original Message-----
From: Dan Russell [mailto:[EMAIL PROTECTED]]
Sent: Sunday, January 09, 2000 4:24 PM
Subject: Nationalist Chinese Chiang Kai shek and US gold

>From my upcoming book: Drug War:Covert Money,Power & Policy:

Helliwell founded SEA Supply of Bangkok in 1950 specifically to transport
cargo, such as arms from Okinawa, to his Civil Air Transport for the Burma
KMT operation. The 1950 idea was to use the Kuomintang troops in Burma to
threaten "China’s soft underbelly." But, since the underbelly didn’t turn
out to be so soft, the entrepreneurial KMT settled into the opium business
instead, sending CAT’s arms supply planes back to Bangkok and Taiwan loaded
with opium or morphine from Burma’s Shan states of Kokang, Wa and
Kengtung.55
In fact, with military control of the richest opium-producing area in the
world, the KMT was no longer dependent on even the pretense of political
legitimacy, since it now had the tactical support of the Thai and Taiwanese
armies. The CIA’s KMT operation, therefore, became self-sustaining, an
enlightening object lesson for all intelligence professionals in achieving
complete independence from civilian policy control. As DCI William Casey,
who worked under Helliwell, later put it, "a completely self-funding,
off-the-shelf operation."
Even Gen. Bill Donovan, the wartime head of the OSS and 1953 ambassador to
Thailand, had lost political control of the CIA’s covert operations. Burma
had protested in the U.N. that the Kuomintang was conquering northeastern
Burma with CIA help. But Donovan found that his strong demands for a
complete KMT withdrawal were met with a transparent charade that left the
situation unchanged.
The KMT’s main Bangkok connection, Gen. Phao, the commander of the Thai
police who coordinated CAT air traffic with Gen. Li Mi’s 5,000 Shan State
KMT, was also the commander of the Thai government’s relationship with the
CIA. Explained KMT Gen. Tuan Shi-wen, "To fight you must have an army, and
an army must have guns, and to buy guns you must have money. In these
mountains, the only money is opium."56 So the KMT went into the business of
enslaving the Karen hill tribes of the Shan States as opium sharecroppers.
According to Professor McCoy, the first snow-white #4 heroin lab was opened
by KMT-affiliated Hong Kong chemists on the Thai-Burma border in the late 60
’s.57 The KMT are also known, fittingly, as the "White Chinese."
Covert government by defense contractor means corrupt wars of conquest,
government by dope dealer. When the world’s traditional inebriative herbs
become illegal commodities, they become worth as much as precious metal,
precious metal that can be farmed. That makes them, by definition, the
preferred medium of exchange for armaments. Illegal drugs, solely because of
the artificial value given them by Prohibition, have become the basis of
military power anywhere they can be grown and delivered in quantity. That’s
why Paul Helliwell, OSS chief of special intelligence in China during the
war, helped run SACO’s KMT opium and heroin. He was arming the KMT. To this
day American defense contractors are the biggest drug-money launderers in
the world.

Dan Russell
[EMAIL PROTECTED]
Kalyx.com
P.O. Box 417
Camden, NY 13316
http://www.kalyx.com

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