Albright Steps Up Attack on Drugs

Laura Myers / Associated Press

KUALA LUMPUR, Malaysia (AP) Secretary of State Madeleine Albright urged
Southeast Asian nations today to attack the region's pervasive narcotics
trade by refusing to deal with drugtainted Burmese businesses.

"Narcotics production has grown in Burma year after year, defying every
international effort to solve the problem," Albright said in a statement at
a postministerial conference of nations with a stake in Asia.

"As a result, drug traffickers who once spent their days leading mule
trains down jungle tracks are now leading lights in Burma's new market
economy and leading figures in its new political order."

Burmese Foreign Minister Ohn Gyaw responded with a presentation on what his
country is doing to halt the drug trade, but a European Union official,
speaking on condition of anonymity, said he and others are skeptical.

In the closed meeting, Albright also urged Southeast Asian nations to
liberalize trade in financial services such as banking and insurance.

Malaysian Prime Minister Mahathir Mohamad, in turn, continued his dayslong
rampage against Western speculators he blames for recent currency plunges
in the region, said officials at the meeting. Over the weekend he cited
American businessman George Soros, saying Soros was punishing Southeast
Asia for its closer ties to Burma. Soros denies the charge.

In a hastily prepared U.S. response, Undersecretary of State Stuart
Eizenstat chastised critics, saying, "Blaming these events on speculators
is not supported by the evidence."

"Experience suggests that market movements are not dominated by a small
number of currency speculators, let alone one person, who happens to be a
be a U.S. citizen," Eizenstat said.

In Burma, the country's $1 billion annual drug trade mostly in opium and
heroin matches its legal exports, according to the U.S. embassy in
Rangoon, the capital.

The Clinton administration has tried to isolate Burma's military regime,
which came to power in a 1988 coup and refused to recognize 1989 election
results. In April, Washington imposed a ban on new U.S. investment in Burma.

Albright charged that Burma's drug traffickers, with government
encouragement, are laundering profits through Burmese banks and companies,
including some that are joint ventures with foreign firms.

"Drug money has become so pervasive in Burma that it taints legitimate
investment and threatens the region as a whole," Albright argued. "This is
a challenge we must face together and another reminder that it will be
hard to do normal business in Burma until a climate of law is restored."

Albright praised efforts in Thailand and Laos whose crossroads with
Burma makes up the infamous "Golden Triangle" of the narcotics trade for
eradicating drug plants and encouraging cultivation of legal crops.

Foreign ministers from the Association of Southeast Asian Nations met with
their "dialogue partners" the United States, Canada, the European Union,
Russia, India, China, South Korea, Japan, Australia and New Zealand.

Members of the 30yearold ASEAN are Brunei, Indonesia, Malaysia, Thailand,
Burma, Laos, Singapore, Vietnam and the Philippines.

Albright also asked the Asian nations to consider allowing the 10 partner
countries to form a group to monitor developments in Cambodia where a
coalition government fell in a coup July 56. ASEAN is working on a
political settlement to ensure free elections next May.

Albright also met privately with South Korean Foreign Minister Yu Chongha
to discuss the Aug. 5 fourparty peace talks with North Korea and China in
New York. They agreed food aid would continue to North Korea regardless of
what happens on negotiations to formally replace an armistice to end the
Korean War, State Department spokesman Nicholas Burns said.

Albright also met with Indonesian Foreign Minister Ali Alatas in what Burns
called a "philosophical discussion" on their countries' relationship.
Tensions had risen after Indonesia cancelled planned purchases of F16
fighter jets over U.S. criticism on East Timor.

On Sunday, Albright challenged Burma to adopt democratic reforms.

"Burma is the only member of ASEAN singled out by the U.N. General Assembly
for refusing to honor election results, the only member where the state and
society are fundamentally at odds," she said.

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