Pubdate: Sun, 01 Feb 2004
Source: Bangkok Post (Thailand)
Copyright: The Post Publishing Public Co., Ltd. 2004
Contact:  http://www.bangkokpost.co.th/
Details: http://www.mapinc.org/media/39
Author: Maxmilian Wechsler

UNCERTAINTY OVER PANG SANG

The drug money is still flowing into the Wa capital, but pressure from 
China to curtail the illicit trade may be making the kingpins a little nervous

"If we have any more opium here after 2005, you can come and chop my head 
off." This is the most famous statement of Pau Yu Chang, chairman of the 
United Wa State Army (UWSA), and the richest and most powerful Wa leader. A 
former member of the Communist Party of Burma (CPB), he reigns the Wa 
region with an iron fist, or more like a communist dictator.

As a consequence, he is now reportedly facing an increased challenge from 
his opponents. "His wish might be fulfilled soon," one of them predicted, 
"but with bullets in his head, instead of the chop."

The resentment against his rule grows steadily along with rumours of a coup 
in the capital city of Pang Sang. "Not only ordinary citizens, but also 
middle-ranking military officers supported by some top-ranking UWSA members 
want him out. Everyone is fed up with him," said a former Wa leader who 
keeps regular contacts with local sources.

Many Wa people say Pau Yu Chang is solely responsible for the drug scourge 
and the bad image of the Wa. "We are described as drug dealers and even 
terrorists by the international community," one of them said. "Wa is now a 
dirty word. Everybody is afraid of us, and they say we are the scum of the 
earth.."

"He and his brothers and their cronies are the ones responsible for the 
opium growing and the production of methamphetamines. If he really wants to 
halt the drug business in the Wa region, he can do it easily with his own 
competence. He has the money, intelligence and ruthlessness required to 
accomplish the job. But up to now, he has used all these to keep power and 
make money for himself," another Wa dissident said.

A Chinese businessman who had just returned from Pang Sang recently said 
the atmosphere there was very tense and anything could happen. "There are 
rumours that some coup plotters were arrested last December. Pau Yu Chang 
and his loyalists know that a rebellion against them is possible, so they 
have already adopted some protective measures," he told Perspective.

"It is not certain whether the annual celebration of the Wa Army Day, which 
includes colourful military and civilian parades to mark the victory over 
the CPB in 1989, will be held on this April 17," he added.

LOSING FAVOUR WITH CHINA

The Chinese could be another reason for the sudden turn of Pau Yu Chang's 
fortune, said a Wa watcher. "They supported him quietly for many years, but 
lost patience and turned against him recently after he ignored their 
requests to halt the flow of illicit drugs to China's southern Yunnan 
province."

According to a confidential source, one such request was made to Pau Yu 
Chang at the Beijing military hospital where he underwent a medical 
check-up in 2002. "But he did nothing to stop it, and the drug traffic 
increased."

However, the source said he did not think China would get involved in any 
coup plot against Pau Yu Chang.

The economy in the northern Wa region depends heavily on China. Pang Sang's 
telephone system, both on land and by satellite, is based in China. Most of 
the city's industries, including cigarette, beer, and whisky production, 
are equipped with Chinese-made machinery. "In fact, the town resembles 
China more than anything else," he explained. "Almost every shop has its 
name written in Chinese characters. The Chinese language and currency are 
widely used there."

The first practical confirmation of Chinese displeasure with Pau Yu Chang's 
rule could be a sudden drop in the cross-border trade.

"Normally, dozens of supply trucks cross the border from China's Mong Ah 
town to Pang Sang. But this has trickled to only a few trucks recently," 
said the exiled Wa leader.

This might explain the presence of many Chinese checkpoints set up recently 
on the road from Lancang to Mong Ah, and the take-over since the middle of 
2003 of border guard duty by the People' Liberation Army.

As a result, the favour usually granted by Chinese border officials to Wa 
traders has been revoked, said a Wa trader, who admitted that it was "hard 
to talk to them now."

Sensing trouble, Pau Yu Chang might be trying to get even closer to the 
Burmese government, and to mend his relationship with Thai officials, as he 
has nowhere else to turn to, said a Burmese analyst.

A reliable source told Perspective that Pau Yu Chang met with Chinese 
officials in Kunming in December and again in January to request that 
restrictions on the delivery of consumer goods into Pang Sang be lifted.

RICH MAN'S HIDEOUT

While the majority of the Wa people are extremely poor, individuals close 
to Pau Yu Chang _ including Li Zu Ru, who is the vice commander-in-chief of 
the UWSA and vice chairman of the United Wa State Party _ are very wealthy.

"Li Zu Ru is the second richest man after Pau Yu Chang. They are close 
friends and are often seen together inspecting different projects in the Wa 
region," the dissident said, adding, "Many Wa officials and ordinary people 
are unhappy with their close ties with the Burmese government and their 
support for the road map (Burmese Prime Minister Khin Nyunt's plan for 
national reconciliation)."

Pau Yu Chang is a highly enterprising man with investments in many 
businesses in Burma, including an airline, animal farms, casinos, 
factories, hotels, jewelry business, mines, real estate and restaurants. He 
also holds a big equity in the Myanmar Mayflower Bank and Asia Wealth Bank. 
Both were among the first foreign financial institutions to be designated 
by the US treasury secretary as of "primary money laundering concern."

According to a US Treasury press release published on November 19, 2003, 
the two banks have been linked to narcotic organisations in Southeast Asia.

The trouble in Pang Sang, however, proves profitable for currency traders, 
who are swamped by orders for the US banknotes reportedly hoarded by 
certain UWSA leaders.

An eyewitness revealed that the UWSA keeps an "incredible amount" of cash 
in several foreign currencies in a heavily guarded and fortified house 
inside their base. "I saw big piles of US and Singaporean dollars as well 
as Japanese and other Asian currencies," he asserted.

Another major culprit responsible for drug production in the Wa region is 
the infamous drug-lord Wei Hsueh-kang, who is wanted by the United States 
and Thailand for drug trafficking, and who recently declared that he had 
stopped all drug-related activities.

A well-informed Shan leader told Perspective that Wei presently resided in 
Mongla, a town located in the eastern Shan State close to the Chinese 
border, officially called Special Region 4. "The area is controlled by the 
National Democratic Alliance Army, a 1,000-strong ceasefire group 
consisting of Akha, Chinese, Lahu, Kokang and Shan people. They are 
involved in the drug business, but otherwise very little is known about 
them," he said.

Indeed, Wei has found just "the right place" to hide, with an escape route 
not too faraway, he added.

"There is absolutely no difference between Pau Yu Chang and Wei Hseuh-kang. 
They are both involved in the narcotics trade," confirmed the same Shan leader.

A reliable source told Perspective that the Burmese government recently 
imposed restrictions on the movement of Wei Hseuh-kang. "If he shows up in 
Mandalay, Lashio or in Rangoon, we will arrest him immediately," the source 
said, adding that there could be "a problem" if the authorities attempt to 
arrest him in his hideout. He didn't elaborate.

"But despite his rather uncomfortable position, Wei and his two brothers 
manage to cover almost a half of the UWSA expenditures at this time, in an 
attempt to assert their power base and influence over the Wa regions. 
However, the vast majority of medium and top Wa leaders dislike them," 
concluded the Shan leader.

Another source claimed that a high-ranking Chinese law-enforcement officer 
met Wei Hseuh-kang in 2002. He told Wei of Beijing's displeasure with his 
drug dealings and vowed to take unspecified retaliatory action if he did 
not stop.

Maybe the current blockade of the Wa region is what the Chinese had in 
their minds, in line with the old Leninist slogan: "And now from theory to 
practice."
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MAP posted-by: Jay Bergstrom