CRIMINALS 'USING CANADA AS A BASE'

White House Report Claims Country Haven For Chinese Triads

Canada has become a gateway for Chinese criminal schemes directed at
the United States, says a new White House report on illicit activity
around the world.

The bluntly worded assessment, drafted by key American security
agencies, singles out Canada as a key venue for triads engaged in
credit card fraud, heroin trafficking, illegal migration and software
piracy.

"The United States faces a growing threat from Chinese organized crime
groups that are using Canada as a base from which to conduct criminal
activities that impact our country."

The International Crime Threat Assessment was prepared by a U.S.
working group that included representatives of the Central
Intelligence Agency, Federal Bureau of Investigation, Secret Service,
Customs Service, National Security Council, Financial Crimes
Enforcement Network, National Drug Intelligence Center and several
other bodies.

It concludes the rapid spread of international crime since the end of
the Cold War is unprecedented in scale, spurred by globalization and
technological advances.

The report says crime poses a significant threat to democratic
governments and free-market economies.

The report reiterates many of the points made by recent Canadian
intelligence assessments but reveals some additional details and does
not shy away from pointing a finger at Canada's allegedly lax rules
for newcomers, particularly a plan aimed at attracting foreign investors.

"Members of ethnic Chinese criminal groups from China, Hong Kong,
Taiwan and Macau have exploited Ottawa's immigration policies and
entrepreneur program to enter the country and become Canadian
residents, which makes it easier for them to cross into the United
States."

It describes the triads, which collectively have an estimated global
membership exceeding 100,000, as fluid associations of ethnic Chinese
criminals and quasi-legitimate businessmen involved in an array of
criminal enterprises.

The two largest Hong Kong triads, 14K and Sun Yee On, made substantial
property investments in Canada during the 1990s, says the report.

The 14K, which maintains a base in Toronto, is reportedly the fastest
growing triad in Canada and has been linked to Asian criminal
activities in New York and other U.S. cities.

"Sun Yee On members are involved in trafficking heroin and
methamphetamine, as well as alien smuggling, to the United States,
where the triad has ties to New York's Tung On Gang."

Prominent 14K members from Hong Kong and Macau have emigrated to
Canada, and Sun Yee On members have settled in Toronto, Edmonton and
Vancouver.

The report confirms Canadian assessments that indicate the Big Circle
Boys are the most active Asian criminals in Canada, responsible for
smuggling southeast Asian heroin to the U.S. and the source of many of
the counterfeit credit cards in North America.

In Vancouver last month, police arrested Lai Changxing, the alleged
point man in a vast Asian smuggling enterprise. The move followed a
criminal probe that turned up possible links to triads.

The U.S. report also points to Canada as a source of illicit
marijuana, a centre of activity for Italian crime groups and a
possible target for Japanese organized crime groups, which reportedly
have invested heavily in Canadian real estate, from golf courses to
hotels.