WA 'SEEKING ALTERNATIVE TO DRUG TRADE'

Experimenting With Mining, Cultivation

The United Wa State Army, the biggest drug trafficking organisation in
Southeast Asia, has since early this year initiated gold and silver mining
in its southern military command with the help of Chinese experts.

A source with ties on both sides of the Thai-Burmese border, said heavy
machinery had been used to drill through mountains near Mong Yawn, opposite
Ban San Ton Du in Mae Ai district, Chiang Mai. But he could not confirm any
findings so far.

He said mining and vast agricultural projects in Mong Yawn and surrounding
areas were being presented as part of the Wa's effort to find an alternative
to drug trafficking.

The Wa army's political arm, the United Wa State Party, had already
announced it would stop involvement in drugs by 2005. The party has its
headquarters at Pangsanh, in Burma's Shan state.

The source estimated some 120,000 Wa soldiers, their dependents and other
civilians had been relocated from various areas to newly-developed
settlements opposite Mae Ai district.

Some 90,000 people were reported to be in Mong Yawn and surrounding areas
under the leadership of Wei Xai-tang. The rest were reportedly in Ban Hong,
opposite Ban San Maked, Mae Fah Luang district of Chiang Rai, under Wei
Hsueh-kang, who is wanted by Thailand and the United States on drug
trafficking charges.

The source said most new settlers under Wei Xai-tang were ethnic Wa, while
those under Wei Hsueh-kang were largely ethnic Chinese from mainland China
as well as from the Shan state and other regions of Burma.

He said Wa leaders in both Mong Yawn and Ban Hong had started huge
agricultural projects "a few years ago", including rice cultivation and
fruit orchards which were getting labour from new settlers.

Early experiments with rice cultivation were unsuccessful because of a large
population of rats in Mong Yawn, the source said.

"Most of the rice fields and orchards are owned by the leaders in both
settlements. Some orchards have up to 30,000 trees," he said. "Part of the
harvest goes to feed the army."New settlers were guaranteed one year's
supply of rice and every adult received a monthly allowance of 50 baht, the
source said.

"Drug trafficking will certainly go on until at least 2005," he said, adding
it was difficult to absorb all the new settlers and to build a
self-sufficient community from largely uneducated soldiers.

Thai authorities are keeping a close watch on developments in Wa-controlled
areas.