Nate Thayer

Chinese City of Dreams By Nate Thayer

Chinese City of Dreams

By Nate Thayer

Phnom Penh Post

August 12 1994

THE Cambodian government has finally rejected a massive project to create a Chinese-controlled city, "a new Hong Kong", in the heart of Cambodia after more than a year of official support that almost saw the project approved.

The project called for an investment of more than $1 billion by Chinese-controlled companies in exchange for Cambodian authorities turning over a 20 sq km plot of land adjacent to Phnom Penh and agreeing to allow 200,000 ethnic Chinese to immigrate to inhabit and develop the land.

The scheme would have effectively created the fourth biggest city in Cambodia and some Cambodian official supporters say it was designed to replace Phnom Penh as the commercial capital.

Cambodian government officials say that the plan is not yet dead. More subtle revised versions of the bold initiative may be submitted for approval which include promises of large-scale investment in return for rights of immigration of overseas Chinese.

The Cambodia-China City Company (CTGC) was created by the Overseas Construction Company of the China Non-Ferrous Metal Company, of Beijing, which is "managed" by Wu Chheang Chang, son in law of Chinese paramount leader Deng Xiaoping, according to Cambodian government and company documents obtained by the Post.

The contract between the government and the two companies called for the "development right for 20 square km as a joint capital of the Cambodia-China City and shall provide favorable policies including the right of residence of 200,000 immigrants who shall organize, build, and live in the Cambodia-China city."

Since March of 1993, the contract received the approval of at least eight Cambodian government bodies, including the National Investment Committee, the office of the Council of Ministers, and the governor of Kandal Province, which adjoins Phnom Penh municipality.

The huge project would have been located in Kandal Steung district, immediately adjacent to Phnom Penh city.

On March 15 the Kandal provincial governor requested the Cambodian Development Council - a powerful board headed by Prime Minister Norodom Ranariddh that overseas all investment policy in Cambodia - to approve the project "to reconstruct and develop Cambodia, bring Chinese and overseas Chinese throughout the world to Cambodia, and invest in the building of a Cambodia-China City in Kandal Steung district."

The contract specifically called for Chinese citizens - representatives of the CNFC - to assume the political authority of deputy governor of the city.

Cambodian government officials who supported the project say that the idea was "to create a new city of Phnom Penh. Rather than restoring and rehabilitating Phnom Penh, create a new Phnom Penh - a new Hong Kong in Cambodia." Indeed, government sources say that the overseas Chinese the project had in mind were primarily Hong Kong residents fearful of a looming 1997.

While there were vague references to what kind of investment the new city would entail, the proposals were remarkably lacking in detail about the purpose of the massive project beyond the right to the huge plot of land - nearly as big as Phnom Penh itself - and the granting of a legal right of immigration of 200,000 ethnic Chinese.

On June 25, Co-Prime Minister Prince Norodom Ranariddh requested that the Cambodian Development Council "examine and give [an] opinion immediately on the project" and reminded the CDC that the "company has made the above proposal once already, recently in Beijing."

The reference to Beijing, according to senior Cambodian government officials, was regarding a message from King Sihanouk - who is convalescing there - that the government should examine the proposal seriously.

On June 28, Keat Chhon, the deputy head of the CDC and the Minister of State for Reconstruction and Development, replied to Prime Minister Ranariddh. He said that "the proposal to establish a Cambodia-China City involves the use of 20 sq km of land for a period of 70 years, permission for 200,000 Chinese immigrants to live together on this land together with the use of $1,000 million of capital to develop this area. I believe that this is not a mere ordinary investment problem but rather a national political issue because it involves 200,000 immigrants. In addition 20 sq km is an extremely large piece of land.

"If foreigners live together there it may become a foreign city in the middle of Cambodia. It is my opinion that dealing with this issue exceeds the competence of the CDC. Therefore, I suggest that this problem be submitted to the Council of Ministers to examine and decide," he told the Prime Minister.

In July, the Council of Ministers - headed by the two Prime Ministers and vested with the authority to approve any such project-rejected the proposal based on concerns over massive foreign immigration.

But in many ways Cambodia presents an ideal place for such a move, and Cambodian government sources say that this proposal and others on a smaller scale are not dead yet.

Historically refered to by China "as the rice bowl of Asia", Cambodia is rich in untapped resources, sparsely populated, bordered by booming Thailand and Vietnam, and blessed with the Mekong River and the Sihanoukville deep water port to the south.

Cambodia's nine million people over 181,000 square km is ripe for immigrants compared to neighboring Vietnam and Thailand's populations of 80 and 60 million respectively.

But Cambodia suffers from an almost non existent skilled labor force after two decades of warfare and economic devastation.

Some Cambodian official planners say that Phnom Penh's infrastructure is in such poor condition that it would be cheaper to build a whole new capital from scratch-and they see an ethnic Chinese controlled capital as the quickest and most promising means for seeing economic development in the country.

 

THE CAMBODIAN CONUNDRUM:U.S. drug policy and U.S. foreign policy interests collide By Nate Thayer

THE CAMBODIAN CONUNDRUM

Cambodia represents a case study of what can happen when U.S. drug policy and U.S. foreign policy interests collide

FOREIGN SERVICE JOURNAL

March 2002

By Nate Thayer

(This article details the way the U.S. war on drugs is actually played out in the real world, the hypocracy betwwen the rhetoric to hunt down and the reality of giving political protection to the powerful narcotics kingpins. U.S. policy is rarely implemented when the high level drug dealers have politcal protection from governments the U.S. has other wise good relations with. While billions are spent going after the small fish, making the U.S. have the highest percentage of people in prison than any other nation in the world--those in charge of narcotics trafficking are not just untouchable, but protected, and, too often,  given the red-carpet treatment by the American government)

On April 8, 1997, Theng Bunma, Cambodia’s most powerful tycoon, upset at “rude” treatment from airline personnel, marched out onto the tarmac of Cambodia’s Poechentong International Airport, pulled out a Russian K-59 automatic pistol and shot out the tires of the Royal Air Cambodge Boeing 737-400 he had just arrived in from Hong Kong.

Bunma complained that the national airline had lost his luggage and refused to adequately reimburse him: “So I said, ‘If you do not pay me that, I will shoot your airplane—for compensation.’” He added: “If they were my employees, I would have shot them in the head.”

Yet Theng Bunma is no bombastic, small-time thug: He is arguably the most powerful man in Cambodia. “In Khmer we say, ‘He makes the rain. He makes the thunder,” said a senior Cambodian official. “Everybody knows that Theng Bunma can do what he wants.”

Theng Bunma intimidates every Cambodian, from noodle vendors to the Prime Minister. As well as, the record shows, the government of the United States.

“We have reliable reporting that he (Theng Bunma) is closely and heavily involved in drug trafficking in Cambodia,” a state department spokesman, Nicholas burns, said in July 1997.

But that public admission by the United States government was years in coming, and came only after an overwhelming and embarrassing mountain of public evidence emerged through the press, forcing Washington to acknowledge the reality it had long tried to suppress: Cambodia has become a classic narco-state.

Theng Bunma is a poster child for the weakness of America’s so-called war on drugs in narco-states like Cambodia. The record shows that the United States government has gone through years of acrobatics to turn a blind eye to Theng Bunma and his benefactors in the Cambodian government.

The U.S. dilemma is simple: successive administrations have been reluctant to implement strict “zero tolerance” policy directives against governments that protect, abet, and benefit from narcotics traffickers. U.S. law requires that they “decertify” these nations as being cooperative in fighting the drug trade, thus cutting off bilateral aid and, potentially, multilateral aid to these governments. But decertification might, officials argue, derail concomitant attempts to develop otherwise good relations with governments they are trying to nurture as “emerging democracies.” So, in Cambodia, the United States has avoided the mandate on the war on drugs.

It’s not that the United States isn’t aware who Bunma is. “Theng Bunma is a well known figure widely reported to be involved in drug trafficking,” a State Department official said in December 2001. But he also noted that Cambodian “cooperation with the Drug Enforcement Administration remains excellent” and said the U.S. government was pleased with “the reorganization of anti-narcotics coordination” within the Cambodian government.

“Cambodia has taken a number of positive steps,” the official said, citing $460,000 that the U.S. government gave in 2001 to the United Nations Drug Control Program to help Cambodian authorities combat drug trafficking.

Still, the U.S. reluctance to recognize the impunity with which Bunma conducts his international criminal enterprises provides a colorful case study of how organized crime, narcotics trafficking and political corruption, when left unchallenged, undermine fundamental tenets of democracy.

By 1997, Bunma represented the height of political and economic legitimacy in Cambodia. He had twice been elected president of the Cambodian Chamber of Commerce. His Cambodian diplomatic passport described him as “economic advisor” to the head of the ruling Cambodian People’s party. And because of his beneficence to royal charities, he held the high honorific title of “Okna,” bestowed upon him by King Sihanouk.

He is also the country’s single biggest taxpayer and landholder and owns its biggest newspaper. His Thai Boon Roong holding company owns banks, airlines, tobacco concessions, logging concessions, shipping fleets, hotels, casinos, and credit card concessions—among many other legitimate businesses.

With offices in Phnom Penh, Bangkok, and Hong Kong, his company is the single biggest corporate entity in Cambodia. Financial records put his net worth in the billions of dollars.

But that is not the source of Theng Bunma’s power. He is a narcotics trafficker. He runs a multi-billion dollar international criminal syndicate that lavishes money and gifts on Cambodia’s leaders. In turn, he is given political protection by the Cambodian government to do just about anything he wants.

Booming Business

Before the 1990’s, Cambodia was not involved in any significant narcotics activity. It was neither a producing country nor a transshipment route. But in 1991, the DEA began noticing—though not yet intercepting—shipments that left Cambodia and headed into a maze of fishing boats. The first drug shipment abroad identified as having originated in Cambodia, according to international investigators, was in 1993.

“In the last two years, we have seen a dramatic increase in Cambodia being used as a heroin smuggling point,” a senior Bangkok-based DEA official said in 1993. “Our intelligence is now picking up four to six shipments a year” of high grade refined heroin with “a minimum of 300 kilograms. The largest we have detected so far is 800 kilos.” (An interception of 300 kilos—660 pounds—of heroin would rank in the top ten drug busts from the Golden Triangle.)

Regarding Cambodian government anti-drug efforts, the DEA official scoffed:” The only thing hampering them is the weather.”

The formula is simple: Criminal syndicates involved in narcotics trafficking seek out week governments that, through the exchange of corruption money for political protection, allow them to conduct their criminal activities. Cambodia in the early 1990’s was just such a case, and organized crime descended to set up shop.

Bunma came to prominence in Cambodia in the late 1980’s. Though born in Cambodia, he carried fake passports and identity cards that identified him as a citizen of Thailand. And he had plenty of money for Cambodia’s political leadership, including both Prime Minister Norodom Ranariddh and Second Prime Minister Hun Sen, political enemies who shared power in an uneasy alliance as the result of United Nations-sponsored democratic elections held in 1993.

In February 1994, U.S. Ambassador to Cambodia Charles Twining invited Finance Minister Sam Rainsy and another senior government official to a private luncheon at his residence. In his living room, Twining turned up the music and lowered his voice. According to Rainsy, Twining offered this warning:”Please tell Ranariddh not to get involved with Theng Bunma because we Americans have evidence that Theng Bunma is involved in drug trafficking.”

Twining, when asked to confirm the conversation, said through an embassy spokesman: “We don’t comment about confidential conversations with a host government.”

Airplanes and Limousines

The United States had reason to worry about penetration of the highest levels of the Cambodian government. Bunma’s many gifts to officials were legendary. In 1993, he paid $1.8 million for Ranariddh’s personal King Air-200 plane and gave Hun Sen the Mercedes limousines that ferried him to official functions. When the government was low on funds in 1994, Bunma underwrote the state budget with several million dollars interest-free “loans.” He paid the entire salary of the Cambodian army during their 1994 dry-season offensive against the Khmer Rouge.

According to one American narcotics official, Cambodia in 1994 was a place where criminal syndicates were “using government planes, helicopters, military trucks, navy boats and soldiers to transport heroin.”

It was also in February 1994—the same month that Twining warned the Cambodian government o distance themselves from Bunma—that the U.S. embassy did the opposite: Bunma was issued a U.S. visa so he could attend the Congressional Prayer Breakfast, with president Clinton the keynote speaker.

Bunma was accompanied by Interior Minister Sin Song, a former Khmer Rouge officer who eight months earlier has led a coup attempt. The two Cambodians were given the red-carpet treatment in Washington. They asked for and were granted a meeting with U.S. officials.

Attending the meeting at the Pentagon, were officials from the CIA, the State Department, the Department of Defense and other agencies. Sin Song, to the shock of the Americans, asked formally for U.S. support for another coup d’état. Bunma identified himself as the “financier” of the effort, according to three officials at the meeting.

In July 1994, a coup was indeed launched, but it too failed.  Sin Song was arrested. So were 33 Thai officials, connected to powerful figures within Thai military circles, who had flown in from Bangkok. Their airline tickets on Cambodian International Airlines were all booked under the credit card of Bunma’s Thai Boon Roong holding company, according to the head of the airline. While dozens were jailed, no action was taken against Bunma.

In August 1994, the opposition newspaper Voice of Khmer Youth published a front-page profile of Bunma, accusing him, among other things, of having been arrested for drug smuggling in 1972. The report said he bribed his way out of jail and fled to Thailand. Less than a week after the article appeared, men in military uniforms gunned down its editor in broad daylight on a busy Phnom Penh street. No one has ever been arrested.

A Fine Line

In March 1995, the U.S. government issued its Narcotics Control Strategy Report, in which the State Department walked a fine line regarding Bunma and Cambodia: “Involvement (in the drug trade) of some leading businessmen with access to the highest levels of government is a known concern. There are indications that some high-level businessmen who give financial support to politicians are involved in heroin smuggling.” No names were given, however.

The report, ironically, outlined the effectiveness of “public diplomacy” in the U.S. war on drugs: “It is in the drug trade’s interest to remain behind the scenes working through corrupt government officials who can maintain a façade of probity and respectability. One of the best ways of routing out drug corruption is to expose it to public scrutiny. Corruption is a threat to any nation’s security, for it allows criminal elements to undermine the legitimacy of the state from within.”

Despite these concerns, the U.S. embassy issued Bunma another visa the following month, this time to accompany the Cambodian head of state, Chea Sim, and his official delegation to Washington. Chea Sim dined with U.S. Assistant Secretary of State Winston Lord, held talks with National Security Council officials and met—at the personal request of Ambassador. Twining—Sen. John McCain, R-Ariz., and Rep. Dana Rohrabacher, R-Calif., among others.

The entire Cambodian government delegation’s rooms at the Willard Intercontinental Hotel in Washington during this visit were reserved for and paid in the name of Theng Bunma, according to the hotel.

Just prior to the U.S. visit, the State Department formally, but secretly, put Bunma on the visa ban list, according to department documents, but decided to issue a de facto waiver so that Bunma, described in his diplomatic passport as an “economic advisor,” could accompany Chea Sim. “We did not want to create problems at the start of what was an important bilateral visit,” said one embassy official.

Grounds for Exclusion

Placing Bunma on the visa blacklist, according to the U.S. government document, was based on State Department provision P2C, which cites section 212 of the U.S. Immigration and Naturalization Act: “ Controlled substance traffickers…who the consular or immigration officer knows or has reason to believe (are) or (have) been illicit traffickers…(are) excludable.” Bunma was also banned from entering the United States under another State Department provision (code “00”) covering other unspecified “derogatory information.”

“According to our records he (Bunma) does not hold a U.S. visa,” a State Department official said in December. “No determination regarding his eligibility to enter the U.S. can be made prior to his application, but we would obviously take all relevant facts into account.”

In June 1995, after Bunma and Chea Sim had left the United States, State Department spokesman Nicholas Burns reiterated longstanding official U.S. policy toward nations who fail to move against drug traffickers: “Governments that reward corruption and that allow trafficker influence to penetrate the highest levels of authority will have difficult relations with the United States.” But he was referring to events in Columbia, not Cambodia, and U.S. officials continued to avoid confronting the Cambodian authorities.

In November 1995, the Far Eastern Economic Review published a cover package entitled “Cambodia: Asia’s New Narco-State?” It detailed Bunma’s involvement in drug trafficking and criminal syndicates. A few days later, Hun Sen, a primary beneficiary of Bunma’s largesse, threatened that “a million demonstrators” might take to the streets to protest foreign interference in Cambodian affairs.

“Diplomats should stay indoors,” he warned. “I cannot guarantee their safety.” The United States sent a special envoy, Kent Wiederman, to try to calm the situation. Wiederman, then deputy assistant secretary for East Asian and Pacific Affairs, emerged from a private meeting with Hun Sen commending his “commitment to human rights and democracy.” The French ambassador, who had just ordered the destruction of sensitive documents because of Hun Sen’s threat, reacted to Wiederman’s praising of Hun Sen by commenting: “What planet did he arrive from?”

On January 7, 1996—at the dedication of the new “Hun Sen park” on the Mekong River, paid for by Bunma—Hun Sen announced his government would “never abandon “ Bunma, “who has helped our party.” On the VIP dais were both Bunma and U.S. charge d’affaires Robert Porter.

Our Intelligence Was Clear

Several months later, a U.S. government regional drug conference was held in Bangkok, with attendees from State, the CIA, the DEA and other agencies. The Phnom Penh embassy official who supervised narcotics issues argued with representatives from other U.S. embassies and agencies who questioned why the U.S. embassy in Cambodia was refusing to acknowledge—let alone confront—Bunma as a drug trafficker.

“Our intelligence was clear and overwhelming that Bunma was a major player,” said a U.S. government official from another embassy who attended the conference. “We couldn’t understand what the Phnom Penh embassy was doing.”

The Phnom Penh embassy cited “suspicions but no proof.” Other American officials involved in narcotics policy were outraged.

On March 1, 1997, in its required annual report to Congress on narcotics, the State Department noted that “Cambodia made significant efforts towards taking control of the drug trafficking and transit problems” in 1996.

But according to Cambodian and Interpol records, the seizure by foreign law-enforcement authorities of drugs originating in Cambodia increased by more than 1,000 percent in 1996 over 1995.

The State Department report added that promises by the Cambodian government to crack down on officials involved in narcotic trafficking or corruption: have thus far yielded no concrete indictments or results.”

Yet they again officially “waived” Cambodia from being decertified as a nation that failed to move against drug trafficking.

The FBI Investigates

Later that month, a terrorist grenade attack targeting Cambodia’s main opposition leader, Sam Rainsy, killed 19 and wounded more than 120 on a bright Sunday morning in a peaceful gathering outside the parliament building. Rainsy was long a vocal critic of Bunma and Hun Sen, publicly linking them to the narcotics trade.

Because an American citizen, and employee of the congressionally-funded International republican Institute, was wounded in the attack, the FBI sent a team to Cambodia to assist the investigation.

A state Department spokesman told me on April 14, 1997, that with regard to drug money supporting the Cambodian government, “we are actively looking into reports that corrupt elements of the military and government may be facilitating drug trafficking, but we are not in a position to comment on those reports.”

By May, the FBI’s preliminary findings had concluded that the terrorists were linked not only to Bunma but to Hun Sen himself. They informed U.S. ambassador Kenneth Quinn that their investigation pointed to some of the prime minister’s top aides, including the head of his personal bodyguards.

Further, the FBI told Quinn, the grenade throwers appeared to be part of a paramilitary unit of assassins who were on the payroll of both the government and Bunma and operated out of one of Bunma’s hotels.

The next step, the FBI said, was to interview Hun Sen and give him a polygraph test. Quinn was not pleased at the potential diplomatic ramifications. Within days, he ordered the FBI team to leave Cambodia, citing “threats” to their safety from the Khmer Rouge. The source of the threats? Hun Sen.

“There is no question our investigation was halted by the highest levels because it was leading to Hun Sen,” said one American law enforcement official directly involved.

Quinn and others in the U.S. government privately argued that Cambodia’s stability was already teetering on the brink of civil war. To continue the FBI investigation to its logical conclusion would push the country over the edge, they contended. (Quinn did not respond to my request for comment).

The departure of the FBI team from Phnom Penh, didn’t, of course, help calm things down. It further bolstered those in the Cambodian government who felt, correctly, that they were capable of intimidating the United States and could act with impunity without harmful diplomatic consequences.

Between the growing fractious deterioration within the Cambodian coalition government, the rising international scrutiny focused directly on Hun Sen from the high-profile grenade attack on Sam Rainsy, and the very public international calls for increased pressure to stem the influence of organized-crime syndicates and drug traffickers over the corrupt Cambodian government, the pressure mounted—and the government imploded.

A bloody coup d’état occurred in early July 1997. The 2.8 billion dollar U.N peacekeeping effort, which began with the signing of the 1991 Paris Peace Accords and culminated in the 1993 elections, was now formally a failure. Civil war had returned. The winners of the election—Ranariddh and his supporters—were ousted from power and in exile; the losers—backers of Hun Sen—had full control. The Khmer Rouge, now allied with the ousted government leaders, was fighting from the jungle. And parliament, the press, opposition politics, a coalition government, and other tenets of the “emerging fragile democracy” had collapsed.

Perhaps no one was happier than Theng Bunma. In an interview shortly after the coup, he boasted of having given millions of dollars in cash and gold to Hun Sen to finance it. “For the clash of 6 July 1997, I called Mr. Hun Sen and I talked to him. I gave him one million dollars to do whatever the control the situation,” said Bunma. “He asked me whether I had the money in Cambodia….I said I would send one hundred kilograms of gold in a plane to Cambodia.”

“I say what Hun Sen did was correct,” Bunma said. “Why? One reason. Take the example of my hotel.” Hun Sen “put three tanks and soldiers around to protect it.”

No Formal Linkage

A few days after this interview appeared in the Washington Post, the U.S. government publicly stated, for the first time, that Theng Bunma was a drug trafficker. But State Department spokesman Nicholas Burns hastened to add that the United States “does not have evidence that links Hun Sen himself, personally, to these accusations of drug trafficking.”

“We think the Cambodian government can do a lot more to purge itself of obvious corruption in the government, of obvious linkages between…members of the government and narco-traffickers,” Burns said.

Burns careful separation of Bunma from Hun Sen was no coincidence. It allowed the State Department to avoid the conclusion that the Cambodian government itself was involved in drug trafficking. Such a conclusion would require the United States to decertify Cambodia, with all its implications—including cutting off bilateral aid and voting against loans from the IMF, the World Bank, the Asian Development Bank and other multilateral aid. That would have been the death knell for a government that derived almost half its budget in 1996 from such sources.

It was the same reason the U.S. government refused to label the “events” of July a coup d’état. That also would require a cessation of aid to Hun Sen’s government.

In June 1998, the Thais issued an arrest warrant for Bunma, who was charged with fraud for allegedly providing false information to obtain a Thai identity card and passport under two different names. In 1999, criminal charges were brought against Bunma in Hong Kong for falsifying immigration documents. Later the prosecution dropped all charges after the Cambodian Foreign Minister, Hor Nam Hong, presented a diplomatic note citing Bunma’s “top honors and ranks” to the Hong Kong court. “Mr. Theng Bunma has claimed diplomatic immunity through his lawyers. The Royal Government of Cambodia has claimed diplomatic immunity on his behalf,” the court said, “The administration has carefully considered the claims and has concluded that Mr. Theng is entitled to immunity from criminal jurisdiction. In those circumstances, the prosecution has decided to drop the charges,” said the Hong Kong government spokesman

And while the Thai arrest warrants remain open, Bunma’s connections in powerful circles in Thailand have prevented any movement to touch him.

On June 18, 2000, Bunma’s daughter was married to a Thai army officer in a lavish ceremony in Phnom Penh. It was hardly a quiet affair.

The Thai military’s Supreme Commander, Gen. Mongol Ampornpisit, chartered a military plane from Bangkok full of top army officers. Hun Sen’s wife was guest of honor and a witness to the engagement ceremony. Cambodia’s defense Minister Gen. Tea Banh, served as the bride-to-be’s sponsor. The Interior Minister, Sar Kheng, also attended. The Bangkok Post reported that “diamond jewelry and stacks of cash” were presented to the bride and groom.

A “Transit Route”

After the coup of 1997, under pressure from Congress, the United States suspended most of its bilateral aid to Cambodia. According to the State Department’s Narcotics Control Strategy Report released in March 2001, “U.S.-Cambodia bilateral narcotics cooperation is hampered by restrictions on official assistance to the central government that have remained in place since the political disturbances of 1997” and “remained suspended in 2000.”

“Cambodia’s principal involvement in the international narcotics trade is as a transit route for Southeast Asian heroin to overseas markets, including…the United States,” the report says.

The report cites Cambodia’s National Authority for Combating Drugs (NACD) as “playing a central role, provid(ing) more effective measures” and said the NACD had the potential “to become an effective policy and coordination tool for the government.”

The same report also noted that in 2000 the deputy police commissioner had alleged that four senior Cambodian government officials—including the former and current heads of the NACD and a deputy commander-in-chief of the Cambodian military—had accepted bribed from narcotics traffickers.

Nevertheless, a few months later, President Bush removed Cambodia from the list of “major Drug-Producing or Transit Countries.” According to the White House,” The only change in the list from the previous year is the removal of Cambodia.”

“I have removed Cambodia from the major’s list,” said President Bush in a prepared statement dated November 1, 2001. “Cambodia was added to the Majors List in 1996 as a transit country for heroin destined for the United States. In recent years, there has been no evidence of any heroin transiting Cambodia coming to the United States.”

Could it be that no one really wants to look for evidence?

 

Expat Returnees pose legal questions for the West By Nate Thayer

Expat Returnees pose legal questions for the West

Phnom Penh Post

Friday 10 March 1995

By Nate Thayer

Some come back for the best of reasons, some are "less than altruistic." Expat returnees are posing hard legal questions for their adopted homelands. Nate Thayer reports.

WHEN Sok Chenda Sophea returned to Cambodia in 1992 after nearly two decades in exile in France, he came with a vision of doing his part to help rebuild his shattered homeland. The 38 year old Chenda, now an under secretary of state for the Ministry of Tourism , cuts a sharp figure with his European tailored suits, fluent French and English, and university and professional background in advertising and tourism promotion. His government salary is the equivalent of US$27 a month.

Likewise, Samnang Siv, 39, quit her US$90,000 a year job working for a biotechnology firm in Massachusetts in the US in April 1994 and returned to Cambodia. Leaving behind her husband and 20 year old son, she now serves as an advisor to the Minister of Tourism, and, with fluency in three languages and her dynamic personality, has been instrumental in assisting foreign companies to come to Cambodia and invest.

"I have been given 40 liters of petrol for my car," she says, and no salary yet. "I just want to contribute my knowledge, my skills, and help my government. I think they need people like me."

In a country whose most decimated commodity after decades of warfare is it's human resources, Sok Chenda and Samnang Siv are exactly what Cambodia needs to get back on it's feet. And there are hundreds of Khmers like them who have brought back their technical expertise, leaving behind "the good life" for reasons that are explained in terms little more complicated than a patriotic commitment to their native lands. "I just want to help my country and people," says Chenda.

But along with the good has also come the bad. Cambodia is choc-a-bloc with scores of corrupt and rapacious ethnic Khmers, many holding foreign citizenship and passports, who have returned since the fall of communism and are now officials in the new government. According to many businessmen and other Cambodian officials, the ranks of government are filled with foreign citizens lining their pockets with kickbacks.

"Oh boy," says Chhang Song shaking his head, "We were puritans compared to these guys."

Chhang, a former Minister of Information in the notoriously corrupt, US-backed Lon Nol regime that fell to Pol Pot's Khmer Rouge in 1975, is an American citizen from Washington, DC who recently returned to serve as an advisor to the current government.

The recent phenomena of foreign citizens returning to participate in the rebuilding of their countries since the collapse of communism and the cold war has raised a new set of legal and other complexities for the mostly western governments that the returnees hail from. While Cambodia stands out as a particularly stark example, it is also increasingly common in Eastern Europe, the former Soviet Union and the Baltic states.

A recent Prime Minister of Bosnia Herzogovina is an American. And in 1992, when an American citizen was chosen as defence minister of the newly independent Lithuania, the U.S. government forced him to make a choice between his passport or the job. A recent Foreign Minister in Armenia was also an American. A Wisconsin politician, Rudy Perpich, was considering accepting the post of Prime Minister of Croatia in 1991. But when U.S. authorities informed him they could not guarantee that he could maintain his American citizenship, he declined the position, according to U.S. diplomats.

But nothing compares to Cambodia. Senior officials who are citizens of foreign countries include the Queen, the First Prime Minister, the Ministers of Foreign Affairs, Interior, Education, Agriculture, Rural Development, Women's Affairs, Tourism, Information, and even Culture.

As well, the head of the powerful Cambodian Development Council, at least 30 members of Parliament, numerous provincial governors, secretaries and under secretaries of state, civil servants, ambassadors, and military generals hold foreign citizenships.

The bulk of these officials hold French, American, or Australian passports, but Canada, New Zealand, Japan, and Switzerland are also represented. Most fled on the heels of the communist victory in 1975 or through refugee camps on the Thai border set up after the Vietnamese invasion of Cambodia in late 1978.

"On the one hand we want to encourage them to come back to help reconstruct their country," says a US diplomat, "This is a good thing. But there are complications."

While American law states that a US citizen cannot take an oath of allegiance to a foreign government, the law is rarely enforced. "The policy has shifted over the years since the end of the cold war," said a US government lawyer familiar with the issue. "We now approach these on a case by case basis."

One reason, say diplomats from several governments, is that many of the senior officials in the newly emerging democracies would not return to help reconstruct their homeland if forced to give up their foreign citizenship. " The political situation remains unstable during the transition period in many of these countries. They fled for their lives to exile once before, and they want to keep that option open," said a Phnom Penh based diplomat.

A US government internal cable sent to all embassies in February offered instructions on how to deal with U.S. citizens serving foreign governments. It cited several "potentially expatriating acts" which include "joining another country's armed forces" or "taking an oath of allegiance to another government". Scores of Cambodian-Americans fit that bill. It also requires embassies, under section 349 of the US Immigration and Nationality Act of 1952 , to inform Washington of any "high level official in a foreign government in a policy making position" who is an American citizen.

But US diplomats say that the courts have now interpreted that Americans can serve in foreign governments as long as they had "no intent of relinquishing citizenship." In effect, it is largely up to the American citizens, according to current US government legal interpretation, whether they choose to give up their citizenship when they join the ranks of a foreign government.

Indeed, foreign governments find benefits in having their citizens in positions of influence. It does not hurt Australia, for instance, to have the Cambodian Foreign Minister hold Australian citizenship. Nor is it detrimental for Australia-which dominates the telecommunications industry in Cambodia-to have Australian citizens in charge of the Ministry of Post and Telecommunications.

The French, who have campaigned strongly for the reemergence of Francophone in Indochina, can only be pleased to have the Cambodian Minister of Culture a French citizen. And the Americans have used Cambodia's top cop, an American citizen, You Hokry who hails from Maryland and serves as minister of interior, to get US citizens in a pickle extra attention.

But there are numerous potential minefields in this new post cold war phenomena. It is well known that many Cambodian government officials who hold dual nationalities are lining their pockets with kickbacks, and their reasons for returning to Cambodia may be less than altruistic. Some Cambodian officials believe that many are here to cash in and have little interest in remaining in Cambodia.

But if they are US citizens, they must file US taxes. "The law is clear. You must declare all your income, whether illegal or legal," said a spokesman for the United States Internal Revenue Service. The US tax laws are often used to collar bad guys involved in more difficult-to-prove criminal activities, such as drug running. As an example the IRS spokesman cited Al Capone, the famous US gangster of the 1930's, who was ultimately jailed for tax evasion. It is common practice for Cambodian government officials to receive kickbacks, and rumors abound of the millions of dollars being pocketed by various officials.

Current Finance Minister Kiet Chhon, estimated that lost revenues from corruption is about US$100 million a year-or more than one-third of internally generated revenue.

"It is shameful," he said.

Senior government ministers privately grouse about a number of their colleagues who are on the take. One example is over a recent US$1.3 billion contract awarded to a little known Malaysian firm, Ariston, for gambling casinos and related development projects in the seaside resort of Sihanoukville. Two senior government officials say they have "proof" that another senior government official-who holds an American passport-received a US$10 million kickback for awarding the contract to Ariston. They say that other companies, including the American hotel firm Hyatt, who bid for the contract "never had a chance" and the corrupt process did "immeasurable damage to our reputation among investors."

Former Finance Minister Sam Rainsy, sacked last fall, and the country's most aggressive anti-graft fighter, said on March 2: " I have spoken with one of the other bidders which did not win the contract...They have been asked ten million dollars in cash. They (were told ) that 'if you give us 10 million US dollars the contract is for you.'" Senior government sources say the official who received the kickback is an American citizen and the company in question which was denied the contract was an American firm. American companies are prohibited by American law from paying bribes to foreign governments, but it is unclear whether American citizens working for foreign governments can receive them without breaking American law.

"In the last few months, the Royal Government of Cambodia has signed a number of contracts with foreign private companies in circumstances which are, to say the least, dubious. These dubious contracts are seriously harmful to the country, the administration of which has become more chaotic and less transparent," said Rainsy. He himself is a French citizen, an elected Member of Parliament, and regularly rates as one of the Kingdom's most popular politicians in public opinion polls.

Furthermore, it remains untested, say legal experts, whether foreign nationals holding senior government portfolios could be charged under criminal and civil laws that apply to the country they hold citizenship in. Of particular concern could be such positions as Minister of Interior or senior officers in the Ministry of Defence who hold American or other passports and ultimately are responsible for the conduct of their subordinates, human rights lawyers point out.

In Cambodia, both the police and military have been repeatedly implicated in human rights abuses including torture and murder in recent years. Rarely, despite cases with overwhelming evidence, are the offenders arrested or prosecuted. The U.S. Torture Victims Protection Act does allow for American authorities to prosecute American or other citizens implicated in torture overseas.

Amnesty International, in a report to be released on 14 March, a copy of which has been obtained by the Post said "members of the armed forces and police are able to impose their will on the civilian population with impunity, committing acts of violence including deliberate and arbitrary killings and extra judicial executions....the Cambodian authorities appear to lack the political will and ability to bring these violators to justice." The report, and an earlier one released by the United Nations Center for Human Rights, cite numerous cases of torture, including military officers involved in eating the livers and gall bladders of their prisoners, and cutting off the heads of prisoners who are alive and under interrogation. The government has, to date, refused to arrest the officers involved.

"Theoretically, they could be charged with, say, conspiracy to obstruct justice," said one human rights lawyer, citing superior officers - who hold foreign citizenship - of subordinates involved in torture. The Cambodian Co-Minister of Interior and scores of senior officers in both the national police apparatus and the military hold US passports.

But "There would have to be some act committed on American soil," insisted a US government lawyer responsible for analyzing such issues. "In general, U.S. law does not follow them around."

But Cambodia's reputation for political thuggery has even spilled over to American soil. Last year, a Cambodian general-an American citizen- was back in California and allegedly threatened a California-based, Khmer language newspaper editor with arrest and death if he returned to Cambodia because of articles critical of the new government, according to complaints filed with U.S. authorities by the newspaper.

U.S. government sources say the general was back in the U.S. to take care of his annual tax obligations, when he read the articles that offended him.

And last month, when an American relief worker in a remote province suffered a heart attack, an official of the Civil Aviation Authority refused to allow an emergency medical airplane run by a non-profit Christian relief organization to take off from Phnom Penh until "fees" were paid. The Civil Aviation official is an American citizen. Could an American citizen be charged with relevant criminal or civil complaints-such as extortion-committed against another American citizen, even though the criminal act was committed on foreign soil? Such questions are largely, so far, in uncharted territory.

"To tell you the truth, we don't like to talk about it. It's a headache," said one American diplomat.

Thai Border: A Wild West of Anarchy By Nate Thayer

Thai Border: A Wild West of Anarchy

By Nate Thayer

Phnom Penh Post

Friday, 20 November 1992

BANGKOK, Thailand-Thai officials, black market traders, and U.N. workers who have operated on the Thai-Cambodian border for years say U.N. efforts to impose economic sanctions against the Khmer Rouge will be virtually impossible to enforce.

The U.N. hopes to pressure the Khmer Rouge into rejoining the deadlocked peace process, in part by sealing the 830-kilometer border, where Khmer Rouge timber and gem concessions add millions of dollars a year to the coffers of the powerful guerrilla faction.

Except for a strip of only a few kilometers near the Thai border town of Aranyaprathet, the central government is not in control of most of the border, from the Gulf of Thailand to Laos.

Aside from the Khmer Rouge, the Cambodian-Thai frontier is home to a powerful plethora of shady businessmen, rebel groups, warlords, fortune seekers, gangsters, and assorted bad guys who have operated without serious hindrance for generations.

Since the days of the anti-French resistance in the 1940s, Khmer rebels and outlaws have used the sanctuary of the mountain and jungle escarpment to fight whoever was in power in Phnom Penh. Scores of other warlords have maintained small armies that control trading routes.

Since 1979 the border has been home to the three Khmer resistance factions. The signing of peace accords in October 1991 resulted in the factions' foreign backers cutting off all supplies, forcing the groups to seek revenue elsewhere.

Now that there is "peace" in Cambodia, some of the rebel armies have embarked on an orgy of lucrative trading. No longer under the control of their nominal commanders, dozens of separate military units are carving out control of their own plots of Cambodia, selling everything from toothpaste to surface-to-air missiles. While some of the trading ends up in the central coffers of these groups, most is controlled by loosely-monitored bands of independent operators.

With the peace plan mandating that the Cambodian armies disarm and turn their weapons over to the United Nations, many of the soldiers have opted for a more profitable alternative. The frontier has turned into one of the biggest arms bazaars in Asia, with thousands of weapons being sold in recent months.

Arms traders recently offered the Phnom Penh Post a selection of SAM-7 surface-to-air missiles at 280,000 Baht (U.S. $11,200) each. Tanks, helicopters, artillery, and assorted light weaponry and ammunition are also available.

Intelligence officials and black market arms dealers say that the border has attracted representatives of a number of groups from around Asia looking for weapons. They say that the notorious Burmese drug warlord Khun Sa recently purchased two surface-to-air missiles, as did anti-Burmese Karen rebels. Anti-government guerrillas from the Philippines and Sri Lanka have also made inquiries, as have representatives from Sikh separatist organizations in India and Muslim separatists from the Burmese-Bangladeshi border.

"I think you should buy them," said the arms dealer with a look of alarm. "Some of the people I am dealing with seem to be very dangerous people. It is better that you have them all.''

Black market traders on the Thai border, who operate easily with Cambodian guerrillas as well as Thai officials, say that processed heroin is available for sale, as are ancient Khmer artifacts looted from temples, and even uranium.

The border has also turned into a freeway for cars stolen in Thailand and slipped over the border, where hundreds of vehicles have showed up in Phnom Penh to be openly sold in the markets. Some are seen with military license plates of the Phnom Penh regime attached to make transport across western Cambodia less difficult at checkpoints.

Across from southeast Thailand, more than a 100,000 Thais and Burmese have crossed the border to seek their fortune in Khmer Rouge-controlled ruby mines, a major source of income for the faction. The miners say that they can carry out handfuls of gems worth millions of baht in their pocket, and they laugh at the thought that the blue-bereted UN peacekeepers will be able to stop them.

Thai Minister of Parliament Thanit Traivut, who represents the border province of Trat adjoining the Khmer Rouge-controlled gem mines, told the Post that 57 Thai companies now operate in the ruby area, with nearly 1,000 earth-moving vehicles. He said that U.N. sanctions could cause the companies, which have invested more than 3 billion Thai baht on equipment, to lose their shirts.

One rai (1,600 square meters) of earth is leased to the mostly small companies at a cost of 2 million baht (U.S. $40,000). Whole divisions of Khmer Rouge fighters have turned into "economic cadre" to provide security, build roads, and check permission papers of the Thai miners. The miners say that no Cambodians are allowed to work in the area.

On the northern borders, controlled by the notorious one-legged Khmer Rouge commander Ta Mok, Thai logging companies said to be linked with senior members of the Thai military have paid millions of dollars for the right to cut logs in Cambodia.

The Thai government has sold the rights to 17 entry points to Thai companies who in turn are given the right to tax logs coming into Thailand. Senior Thai officials are reportedly on the receiving end of some of the profit.

According to traders, the highly-secret Thai intelligence unit known as 838, which was responsible for covert liaison and weapons supplies to the Khmer Rouge during the 13-year war against the Vietnamese, receives 40 baht (U.S. $1.60) for each cubic meter of wood that crosses into Thailand.

Through a complicated procedure of payoffs, Thai loggers pay fees of around 5,000 baht (U.S. $197) per cubic meter for soft wood, and considerably higher for hardwoods. Several Thai companies, known to be controlled by Thai organized-crime groups, are involved in the logging concessions, with the sanction of several well-known Thai political figures.

Thanit Traivut, in an interview with the Post, said that UNTAC officials have asked Thailand to be prepared to close the border by the end of the year. He said that Thailand "will request to postpone [implementation of sanctions] until next year in order to allow Thai companies to recoup their losses.''

Furthermore, the Phnom Penh regime is involved in buying logs from their enemies-the Khmer Rouge-paying fees to the Khmer Rouge in many areas in order to transport logs through Cambodia, often to the port at Kompong Som. This adds further complications to the effectiveness of U.N. sanctions, which are not directed at the Phnom Penh regime.

In case U.N. officials are looking for reference points to study in their effort to impose the sanctions, they need look no further than the Thai border to the west with Burma.

There Khun Sa, reputed to be the world's number one opium trader and with a U.S. arrest warrant à la Manuel Noriega on his head, controls a section of Burma from which he exports the drug through Thailand.

Despite the efforts of hundreds of U.S. drug and intelligence agents, and with the stated support of both the Thai government and military, the flow of opium and its derivative heroin continues virtually unabated.

One Thai weapons trader, reflecting on the reaction of the Khmer Rouge if the United Nations attempts to cut its purse strings, said: "Right now the Khmer Rouge do not hurt the U.N. But if the U.N. does that, they will have to kill them. You know, they don't like foreigners anyway."

Another Thai arms dealer, with long experience running weapons through Thai borders with several neighboring countries, said: "It will be easy to order sanctions, but impossible to enforce. The order just comes from air-conditioned rooms. But in the field, too many people are making money."

Cambodia: Asia’s New Narco-State? Medellin on the Mekong By Nate Thayer

Cambodia: Asia’s New Narco-State?

Far Eastern Economic Review

COVER STORY (Three story package below)

 23 Nov 1995

Has Cambodia become a mafia state? Nate Thayer reports that in the two years since UN-run elections, criminal syndicates protected by high-ranking have turned the country into a major centre for heroin trafficking and money laundering. Doubly disturbing, some of the same military units accused of killing government opponents are implicated in drug smuggling and other crimes. Western aid donor countries are alarmed. Also: A profile of Theng Bunma, a businessman who has bestowed millions of dollars on the Cambodian regime.

(Authors note: The Review and I were sued by Theng Bunma for this story and I was forced to leave Cambodia for a short while because of serious threats to my life as a consequence of its publication. The U.S, government refused to go on the record that they had identified Bunma as an organized crime figure and drug trafficker, despite innumerable U.S. sources privately, in detail, saying he was. Thailand and Hong Kong, after publication of the below stories, both banned him from entry to their countries and issues criminal warrants for his arrest. Over drinks one night, in what will remain an unnamed remote Asian country, I was expressing frustration to a resident American diplomat at the U.S. refusal to acknowledge publicly Bunma’s status as banned from entry to the U.S. having been formally designated a drug trafficker. I was being sued by Bunma at the time causing considerable distraction. The diplomat responded: “Fuck that. Come to the embassy tomorrow morning. I’ll give you the documents.” I told him I wanted them to give to the Hong Kong court and he—the diplomat-- would be technically committing treason by giving me the classified documents. “Fuck it. You are a U.S. citizen. It is my job to protect American citizens.” I carried with me at the time a copy of Bunma’s Cambodian diplomat and civilian passport as well as his Thai passport under an alias. The next morning, I arrived at the embassy and the very accommodating American diplomat took the passport numbers, punched them into a computer, and up came Bunma’s classified designation as banned from entry to the U.S. based on his designation under two U.S. Immigration criminal classifications: (1) drug trafficker, and (2) “Undesirable person”—which often refers to an organized crime figure. “Which documents would you like?” asked the diplomat. “All of them,” I answered. He pushed print and out spit a U.S. government document, on embassy letterhead, stating Bunma was banned from entry to the U.S. that would appear on any immigration computer on entry to the United States. I turned it over to my lawyers, who turned it over to the Hong Kong court, who turned it over to Bunma’s lawyers. They dropped the lawsuit. I then wrote a follow up story based on the document and the Review printed a graphic photocopy of the official U.S. government document to emphasize the point.  End of story)

CAMBODIA: Medellin on the Mekong:

 

The UN spent $3 billion to lay the foundation for peace and democracy in Cambodia. Now the country's fragile democratic institutions are being subverted by the wealth of drug lords. The REVIEW's Phnom Penh correspondent, Nate Thayer, researched these stories over a four-month period in Cambodia, Thailand, Hong Kong, France and the United States.

It wasn't your typical diplomatic luncheon. In February 1994, U.S. Ambassador Charles Twining invited Cambodian Finance Minister Sam Rainsy and another senior official to dine at his residence in Phnom Penh. Leading them into the living room, Twining turned up the music and lowered his voice.

Then, according to Rainsy, Twining asked him to convey a message to Prime Minister Norodom Ranariddh: "Please tell Ranariddh not to get involved with Theng Bunma because we Americans have evidence that Theng Bunma is involved in drug trafficking." The other Cambodian official confirms the account.

The United States ambassador had just named Cambodia's wealthiest businessman, but the allegation didn't shock his listeners. Western governments, international law-enforcement officials and Cambodian sources say businessmen engaged in criminal activities have amassed immense power in Cambodia in the two-and-a-half years since United Nations-run elections. Protected by senior government officials, they've turned Cambodia into a major centre for drug trafficking, money laundering and smuggling.

Although Theng Bunma denies any wrongdoing (see story on page 27), his company has been fined at least twice since 1993 for attempting to smuggle gold and other goods into Cambodia. Yet Bunma holds a Cambodian diplomatic passport issued in January that identifies him as special adviser to National Assembly President Chea Sim. He's a benefactor of both prime ministers: He paid $1.8 million in August 1993 for Ranariddh's Kingair-200 plane and gave Second Prime Minister Hun Sen the Mercedes limousine that ferries him to official functions. He even helped underwrite the 1994 state budget with interest-free loans of several million
dollars--effectively funding the dry-season offensive against the Khmer Rouge, the REVIEW has learned.

Cambodia is a place where, one American official charges, criminal syndicates "are using government planes, helicopters, military trucks, navy boats, and soldiers to transport heroin." Doubly disturbing, some of the same military units involved in drug trafficking have been implicated in political violence, pointing to dangerously close links between crime syndicates and political figures.

The allegations have far-reaching implications for Cambodia, which receives 44% of its $410 million annual budget in aid from Western donor countries. U.S. officials told the REVIEW that Cambodia will join 29 other countries on the Major Narcotics Country list in coming weeks, which could lead to a cut-off of aid.

France has already put Phnom Penh on notice that unless top officers it believes are involved in crime syndicates are removed from the national military police it will stop aiding the force. Australia, meanwhile, is worried by evidence that the navy--which it is assisting--is directly
involved in shipping heroin.

The revelations could cause additional embarrassment to U.S. diplomats, whose government has officially made the fight against drug trafficking a top foreign-policy priority. In late April, Twining's embassy issued a visa to Theng Bunma--the same businessman the ambassador had alleged to be a drug smuggler. Bunma visited the U.S. as part of a delegation headed by Chea Sim, who was acting head of state.

Asked whether he had informed Rainsy of U.S. suspicions about Theng Bunma, Twining said: "We don't comment about confidential conversations with a host government." But his employer, the U.S. State Department, has publicly voiced its worries about Cambodia. In a report on narcotics and Cambodia issued in March, it said "involvement of some leading businessmen with access to the highest levels of government is a known concern. We are not aware of any prosecutions for narcotics-related corruption. There are indications that some high-level military officials and powerful businessmen who give financial support to politicians are
involved in heroin smuggling."

Cambodian sources, international law-enforcement officials and diplomats say numerous senior military and police officers are involved in transporting heroin through Cambodia or protecting the traffic. The drug, originating in the Burmese segment of the Golden Triangle, arrives by
land from Thailand and Laos, or aboard small boats from Thailand. Then most of it is shipped out of Cambodia through ports in the southwestern province of Koh Kong, destined mainly for the U.S. About a third departs through Phnom Penh's Pochentong airport, often destined for Europe.

"It is clear that Cambodia is a new and rapidly increasing trafficking route," says Bengt Juhlin, deputy head of the UN International Drug Control Project regional office in Bangkok. He points to the absence of an effective legal system, lack of resources to combat drug smuggling, and
official corruption. "The presence of the three makes Cambodia very vulnerable."

An added attraction for international criminals is the ease of laundering money in Cambodia. A confidential report prepared this year for the Interior Ministry says that 19 of Phnom Penh's 29 banks are suspected of being fronts for cleaning tainted cash. As the BCCI scandal showed a
few years ago, crooked banks pose a special risk to the international financial system. But it doesn't take a bank to launder--in Cambodia's cash economy, it's easy to unload dirty dollars at restaurants, nightclubs, luxury-goods dealerships and the casino.

"Cambodia is now a mafia state because there are a group of businessmen who consider themselves above the law, who have infiltrated all spheres, all aspects of government, the judiciary, the parliament," says Rainsy, who was sacked from his government post in September 1994 and has just formed an opposition political party. "These people--these politicians--are at least protecting and at worst working for the mafia."

It's a sinister symbiosis. When the influence of crime bosses permeates the apparatus of state, then elements of the security forces can become their tools. Critics say that's happening in Cambodia, compounding the climate of fear created by the government's increasingly heavy-handed treatment of its political opponents. In fact, the two units most frequently cited in connection with political violence and other human-rights abuses--the Defence Ministry's intelligence force and the national military police--are also deeply implicated in smuggling and other crimes, according to international law-enforcement officials and diplomats (see
story on page 30).

That means those who highlight the links between crime bosses and government officials are doubly at risk. In August, after Phnom Penh's popular Morning News published reports about military complicity in heroin smuggling, a hand grenade was thrown in the house of the paper's publisher.

A year earlier, the editor of The Voice of Khmer Youth was shot dead at midday at a busy Phnom Penh intersection. The attack came just days after the newspaper published a detailed biography of Theng Bunma, accusing him of heading a large criminal syndicate whose activities included drug trafficking.

"Cambodia is now like Noriega in Panama. Nobody dares to speak out because they will be killed," says a senior officer in one of Cambodia's security services.

Police Gen. Nouen Souer, the former head of the national police anti-drug unit, is one of the few Cambodian officials to have spoken out publicly about government corruption and the drug trade. After his remarks were published in an August newspaper interview, he received death threats. He has been silent since then.

In the August interview, though, Souer claimed that 600 kilograms of heroin a week were coming through Phnom Penh. "I knew about this, but I couldn't do anything," he said. "The smugglers are rich and have high-ranking officials behind them." Asked who the high-ranking officials were, he replied: "I can't tell you or I will die."

Cambodian sources, international law-enforcement officials and diplomats name several wealthy and well-connected Cambodian businessmen as suspected heads of criminal syndicates. But none is better connected than Theng Bunma, a master at playing both sides of the fence.

In addition to bestowing gifts on the prime ministers, the magnate was linked to a failed July 1994 coup that attempted to shore up the power of some former communist officials who were being marginalized under the new regime. Cambodian and Thai officials say the 33 Thai nationals implicated in the coup plot arrived in Phnom Penh on air tickets booked by Bunma's holding company, the Thai Boon Roong Group. The invoice remains unpaid, however, and Bunma contends the order was unauthorized.

Until this year, Bunma seemed to be content to operate from behind a veil of enforced silence. But on October 15, he was elected president of the Cambodian Chamber of Commerce by a vote of 21-1. That shocked Western donor countries, who were well aware of Bunma's unsavory reputation. "This time they went too far," one Western ambassador in Phnom Penh quoted his U.S. colleague, Twining, as saying.

Twining's discomfort was understandable. His embassy had issued Bunma a visa so he could visit the U.S. in May as part of Chea Sim's delegation. That was 15 months after Twining's warning to Rainsy.

Twining and other U.S. officials refused to comment publicly on why suspected drug traffickers were issued visas, but one U.S. embassy source defends the decision: "We had no firm proof, only suspicions," he says.

But other U.S. government sources close to the issue reject that defence. "The decision was mainly political. We did not want to force a confrontation with a government that we have good relations with," says one official.

When several Thai MPs were put on the U.S. immigration "watch list" last year, barring them from entering the country because of suspected links to drug trafficking, the diplomatic and political fallout was heavy. Yet this time, the effort by diplomats to avoid controversy may have backfired.

To start with, letting suspected Cambodian drug traffickers into the U.S. appears to directly contradict post-Cold War U.S. foreign policy, which calls for "public diplomacy" to expose foreign officials who participate in or protect international crimes such as drug trafficking.

"It is in the drug trade's interest to remain behind the scenes working through corrupt government officials who can maintain a facade of probity and respectability. One of the best ways to routing out drug corruption is to expose it to public scrutiny," says the U.S. Government Narcotics Control Strategy report released by the State Department in March. "Corruption is a threat to any nation's security, for it allows criminal elements to undermine the legitimacy of the State from within."

When Chea Sim came to the U.S., his delegation's rooms at the Willard Intercontinental Hotel in Washington on May 8-10 were reserved and paid for in the name of Theng Bunma.

Chea Sim dined with U.S. Assistant Secretary of State Winston Lord, had talks with National Security Council officials, and met Sen. John McCain of Arizona and Rep. Dana Rohrabacher of California, according to his official schedule prepared by the State Department. Teng Bunma didn't accompany Chea Sim on his official rounds in Washington, but Rohrabacher was incensed when he learned afterwards that U.S. officials suspected a member of the Cambodian delegation of involvement in the drug trade.

"If Chea Sim was accompanied to the United States by major drug dealers, I would be very upset. Not only upset with the drug dealers, but upset with my own government for not tipping me off," says the congressman, who met Chea Sim on May 10. "The Cold War is over. We have no more excuse to turn a blind eye to this kind of behavior by governments."

President Bill Clinton seems to agree. In a speech marking the 50th anniversary of the UN, he announced that the U.S. was identifying and putting on notice countries that tolerate laundering of drug money, and threatened economic sanctions against governments that failed to crack down.

"President Clinton's speech . . . represents a significant new conception of U.S. foreign policy," Zoe Baird, a member of the president's Foreign Intelligence Advisory Board, wrote on October 25. "The U.S. may stop supporting a leader who is tolerant of a drug cartel though it
previously supported him because he was a staunch anti-communist. The U.S. may risk embarrassing or destabilizing a government that is weak in rooting out--or protects--terrorists or organized crime."

The Cambodian government protests that it is doing what it can to fight crime. On September 15, it set up a special committee chaired by the prime ministers to combat drug-related crimes. Already, it says it's "closely cooperating with international organizations--such as the UN and  Interpol and with countries such as the U.S. and France--in implementing measure aimed at ferreting out and apprehending criminals, seizing drugs and sending them to the court."

But unless concrete results are visible soon, it may be too late to protect U.S. aid to Cambodia. American officials say it's only a matter of weeks before Cambodia is placed on the Major Narcotics Country list. Once that happens, U.S. law will require that Phnom Penh demonstrate that it has "taken legal and law-enforcement measures to prevent and punish public corruption--especially by senior government officials--that facilitates the production, processing or shipment of narcotic drugs, or that discourages investigation or prosecution of such acts."

If Cambodia cannot satisfy these terms, the U.S. is obliged to consider halting most forms of bilateral assistance, and voting against multilateral assistance programmes such as those of the World Bank, the International Monetary Fund and the Asian Development Bank--the financial lifeblood of the Cambodian government.

In several cases, countries that failed to meet the criteria were issued U.S. "national-interest waivers" by the White House, sparing them from the full force of sanctions. But Cambodia, which lacks the strategic importance of a country like Pakistan, could conceivably end up on a short list of the countries that have been "decertified" by the U.S: Afghanistan, Burma, Iran, Syria and Nigeria. That would give it virtual outlaw status.

"You don't want to be on that list," says one U.S. official. "Its significance is the loss of assistance, but it's also political. It's like being on the terrorist list."

 

 (Story two)

Sugar Daddy

Businessman emerges as pillar of the regime

 

His name is a household word to Cambodians, from noodle vendors to civil servants. It is synonymous with wealth and power on the streets of Phnom Penh. “In Khmer, we say ‘He makes the rain, he makes the thunder’,” says a senior Cambodian official. “Everybody knows that Theng Bun Ma can do what he wants.”

Theng Bun Ma, a 54-year-old ethnic Chinese, is Cambodia’s richest businessman. But his aura of power doesn’t come from his October 15 election as president of the Cambodian Chamber of Commerce—it comes from his close connection to the country’s political and military elite.

With interests ranging from cigarette distributorship to a casino, Bunma’s company, the Thai Boon Roong Group, is Cambodia’s biggest taxpayer. But he has also showered the leadership with gifts and even helped underwrite the military budget.

Clearly, Bunma has come a long way from the eastern province of Kampong Cham, where he started out as a driver’s assistant on a rural bus line and moved into small trading. “I was young, then I traded rice and ran buses,” he said in a rare interview with a Phnom Penh journalist, “I had contact with Thai’s selling beans, sugar, cement.”

That wasn’t all he traded, according to a detailed biography published in a Phnom Penh newspaper in August 1994. The Voice of Khmer Youth alleges that in 1972, Bunma was arrested in the western city of Battambang, when he tried to smuggle 20 kilos of opium in from Thailand under the hood of his car.

Sentenced to twenty years in prison, Bunma bribed a guard and escaped, it charged. “Using a bamboo stalk as a ladder, he crawled out a prison window (and)…hid in a rice loft. The court issued an arrest warrant for Bunma. From this point on, Bunma took refuge at the Khmer-Thai border,” the newspaper said.

Less than a week after the newspaper printed the biography, its editor was gunned down by men in military uniform in broad daylight on a busy Phnom Penh street. No one has been arrested for the murder.

Bunma said he moved to Thailand in 1972 simply because Khmer Rouge guerrillas were disrupting trade. Whatever the reason for the move, Bunma received a Thai citizenship card on July 8, 1975. The next month he registered Thai Boon Roong as an import-export company with capital of $100,000. “I did business through waterways using ships to transport goods to sell in Vietnam,” Bunma said in the interview.

It was a tumultuous time to be trading with Vietnam, where the south had just fallen to the communists. The Voice of Khmer Youth report said that Bunma used boats to smuggle everything from palm oil to tobacco into the country, returning with Vietnamese girls and well-off Sino-Vietnamese refugees.

Smuggling made Bunma a rich man, the newspaper said. That charge incenses the tycoon, who prepared for the October interview by having an aide tape a patch of traditional Chinese medicine to his chest. “You’ll be asking questions so I am putting this patch on for fear that my energy is not strong enough,” he said. “My heart is not strong.”

Then he lashed out at public accusation that “I am mafia, that I deal in drugs.” Bunma said he made his fortune during the Thai property boon of the 1980’s. “Can the people who do dirty business be equal to me? I sold a piece of land on Sukhumvit (in Bangkok), which I’d bought for $400 million, and I sold it for than $800 million. I bought another piece of land, also in Thailand, for $100 million and I sold it for $470 million. Do people dealing in drugs make that much money?”

Bunma didn’t explain, however, where the initial capital came from. Nor did Thai Boon Roong’s move into real-estate mean an end to smuggling: Cambodian customs officers have fined the company at least twice in recent years for illegally importing goods: One incident in 1993 involved 104 kilograms of gold.

Bunma, who is managing director of the Thai Boon Roong group, said it was a desire to “reconstruct the Khmer nation” that made him one of the first major investors in Cambodia after the country started opening up in 1992. Actually, Bunma was already trading with Cambodia on a massive scale by the late 1980’s, and he helped the army meet its payroll when Soviet and Vietnamese aid ended.

In the early 1990’s, he snapped up hundreds of hectares of property in Phnom Penh and the deep-water port of Sihanoukville. When the government began privatizing its assets, He became a major contributor to the formerly communist ruling party, the Cambodian People’s Party, in the run-up to the 1993 UN-run elections.

Bunma now has major stakes in a wide range of legitimate businesses in Cambodia, including the Mekong bank, the Holiday International casino, the Regency Park hotel-office complex, a daily newspaper and a plywood factory. Thai Boon Roong is partnered with Intercontinental Hotels in building Phnom Penh” first five-star hotel. It also has exclusive distribution rights for Jet brand Indonesian cigarettes in Indochina; business associates say the monopoly nets at least $4 million a month on sales of 100,000 cases.

In the interview, Bunma also talked about owning three Boeing 737 aircraft and “49 pieces of land in Thailand, but I have not had time to construct.”

Bunma’s business skills have earned him his share of admirers. Says one Overseas Chinese Businessman in Phnom Penh: “he keeps his word. There is not a lot of paperwork in the traditional Chinese way of doing business, and he always pays his bills.”

Says another associate: “He is a very shy person, quiet, dignified. There is a physical presence, but he doesn’t swagger. For what it is worth, he is a very doting grandfather.”

One Asian intelligence agency, which has an extensive file on Bunma, mentions that he suffers from diabetes. He speaks Khmer, Thai, and Chinese, but no European languages.

“He is very demanding—he only eats dishes prepared by his wife,” said the newspaper biography. He has been married twice and has ten children—eight sons and two daughters. One son is the director of the Mekong bank; the other runs Sharaton Hotel in Phnom Penh, which houses the casino.

The casino business is perhaps most emblematic of the man, who used to spend his free time gambling on card games even as a small-time trader in sleepy Battambang. Now, according to an Asian intelligence official, “every time he gambles it’s not less than $1 million.”

 

(Story three)

The Storm Troopers

Abuses prompt donor countries to reconsider aid

It wasn’t exactly a clean getaway. When confronted by Phnom Penh’s anti-drug squad early this year, a gang of suspected heroin traffickers opened fire on police and to sanctuary inside a compound belonging to military intelligence on the western edge of the capital.

Was that a sign that the Cambodian Defence Ministry’s feared intelligence force was abandoning its security role for more lucrative pursuits? No, apparently it was just diversifying: On July 13, dissident politician Sam Rainsy’s bodyguards were dragged to the same compound, where they were beaten and threatened.

Diplomats, international law-enforcement officials and human-rights advocates who monitor Cambodia say a disturbing pattern has emerged: The same military and police units responsible for violence against opponents of the government are also the most deeply implicated in criminal activities. These include military intelligence and the national military police, or gendarmerie.

The way crime permeates the apparatus of state is problematic for Western aid donors. It is particularly awkward for France, which is aiding the military police. French officials say they notified the Phnom Penh government in October that unless the commander of the military police—Gen. Kien Savuth—is purged, France will halt its multimillion- dollar programme to train and equipt the force.

Formed during the 1979-1989 Vietnamese occupation and still essentially controlled by the same men, military intelligence and the military police both adapted quickly to life after communism after the signing of the 1991 Cambodian peace agreement. “From the very beginning, these people, in addition to arresting, held people for ransom,” says a former top official of the United Nations Transitional Authority in Cambodia (Untac), which organized the 1993 elections. “They have been involved in both extortion arrests and political arrests.”

Untac documents implicate the current head of military intelligence, Maj-Gen. Chhum Socheat, in a number of incidents of political intimidation and violence during the run-up to the 1993 election, including the abduction and execution of four opposition-party activists in Battambang, in western Cambodia.

Military intelligence troops have been enforcing a reign of terror in western Cambodia since at least 1991, according to a 1994 report from the UN Centre for Human Rights. The confidential UN report said intelligence units were “making use of wide and uncontrolled powers they enjoy in the province to arrest, detain, interrogate, torture, and execute to carry out, concurrently to their military intelligence work, more lucrative activities.”

Socheat was responsible for the 5^th military region, which covers western Cambodia, at the time.

One UN official assigned to investigate a murder committed by senior military intelligence officers, vented his frustration with their impunity in a March 13, 1993 memo to his superiors: “Is someone going to escape going to trial for cold-blooded murder merely because he is a high-level military figure?” he said. “If so, this Human Rights Officer would prefer someone else tell the sister of the victim.”

The record of the military police, which answers directly to the two prime Ministers, isn’t much better. From 1985 through 1993, Gen. Kien Savuth’s 820-man unit was responsible for Phnom Penh’s security. It was called in by the Prime Minister to put down anti-corruption demonstrations in December 1991. According to the former top Untac official, the unit was directly “implicated in the killings of unarmed demonstrators during the unrest” and “was responsible for numerous cases of ill-treatment of peasants” during other operations.

“because of its record, recommendations were made during the Untac period that it be made among the first units to be demobilized because its very existence was antithetical to the creation of a neutral political environment,” the former official says.

Instead, the unit survived the Untac period and was transformed into a military police force after the election. In October, the gendarmes were used to break up an opposition-party meeting that had been banned by Hun Sen. Earlier, grenades were thrown and more than 30 opposition officials and supporters were hurt.

The nationwide networks of military intelligence and military police give them the means to traffic contraband, Nguon Pen, deputy governor of Stung Treng province, charged in September that planes controlled by the military were flying heroin from the province, which borders Laos, to Phnom Penh. “Who can fight them if some of the crimes are committed by those in the army themselves,” he said.

Military intelligence’s Gen. Socheat and the gendarmerie’s Gen. Savuth have something else in common: links to powerful businessmen. Uniformed and plainclothes gendarmes guard Theng Bunma’s residence in Phnom Penh, and also handle security at the Holiday International casino, which Bunma controls.

In February 1994, gendarmes forcibly evicted hundreds of families from a property owned by Bunma near Phnom Penh and slated for development. Gen. Savuth personally directed the operation, during which scores of villagers were beaten, one child shot to death, and one man taken into custody and executed, according to foreign human-rights investigators.

A record like that has made France balk. “We have officially told the Cambodian government already that if Gen. Kien Savuth is not dismissed, removed as head of the military police, we will not support them anymore. We will be forced to halt our gendarme programme,” a senior French official in Phnom Penh told the REVIEW. “We know very well the truth about this man. We cannot continue to support him.”

Australia, another key donor country in Cambodia, is faced with a similar dilemma. Much of Australia’s military assistance programme is focused on helping Cambodia rebuild its navy. But law enforcement officials say some elements at the navy are deeply involved in criminal syndicates, using naval vessels to transport or protect shipments of heroin and marijuana. “We are very disturbed by some of what we know,” says an Australian official in Phnom Penh.

Cambodia’s main drug export route is the southwestern coastal province of Koh Kong, where former navy chief Adm. Tea Vinh, the younger brother of Defence Minister Tea Banh, wields immense influence. A foreign narcotics official says that since 1991 “our intelligence began picking up four to six shipments a year” of high-grade refined heroin through Koh Kong, with each shipment weighing at least 300 kilograms. That is probably just the tip of the iceberg, he adds. “The only thing hampering them is the weather.”

Not that there isn’t the occasional raid. A combined force of police and customs officials swooped down on a speedboat off Koh Kong on August 11, seizing 71 kilograms of heroin. But two of the arrested smugglers were cops, who quickly fingered their superior officer. “The province of Koh Kong is completely under the control of the mafia,” charges a senior Cambodian government official. “Virtually the entire political structure is involved in illegal activities.’

 

Faded red: The death throes of the KR By Nate Thayer

Faded red: The death throes of the KR

Phnom Penh Post

By Nate Thayer

Friday, 21 April 1995

The final chapters of history are being readied for one of the most brutal regimes in recent times, the Khmer Rouge. Nate Thayer investigates.

ANGKOR CHUM, SIEM REAP - Along this isolated stretch of provincial highway, 19 blown bridges isolate the remnants of villages that were burned to the ground in recent months by Khmer Rouge guerrillas.

Huge craters in the road explain the carcasses of trucks destroyed recently by anti-tank mines. Dozens of soldiers with protective eye-wear gently expose thousands of land mines laid in rice fields, as truckloads of ragged government troops pass by on the way to nearby front lines.

Intermittently, deafening explosions mark another mine detonated in place. The automatic weapons bursts puncturing the quiet have been a regular feature of life in rural Cambodia for more than 25 years.

The tree line on the other side of the rice paddy marks Khmer Rouge zones, where the remnants of one of the worlds last communist guerrilla movements wages what now seems a war without issue. But despite the depressing scenario of ongoing warfare, most Cambodians and analysts agree, the Khmer Rouge appear, ultimately, to be doomed.

In the wake of a vicious military campaign of terror targeting civilians begun late last year, Pol Pot's Khmer Rouge have suffered significant defeats in northern Cambodia in recent months. Nearly half their forces in this once key stronghold of Siem Riep have defected to the new government, unwilling to continue fighting what they say is a hopeless cause with no clear objective. While it may be a few years away, analysts agree that the group is dying a slow death, with little chance of recovering as a potent political force.

"The Khmer Rouge must die because they have lost their political base, their support base, their ideological base. Now they just have an army, and the army has turned against the masses," said Siem Riep governor Toan Chhay.

The governor is not just spouting government propaganda. Since 1979 until 1993's UN-sponsored election, Toan Chhay was chief of staff of the royalist guerrilla army that fought with the Khmer Rouge. His forces shared jungle supply lines, covert Chinese aid, and battlefield strategies with Pol Pot, aimed at ousting the Vietnamese occupation army and the government they installed.

Now, as a senior official of the government that emerged from those 1993 elections, he is welcoming Khmer Rouge defectors using psychological warfare and political and economic incentives. Against the recalcitrant hard-core cadre still fighting from increasingly remote jungle outposts, he and the army are coordinating military assaults.

For the government, the combined use of amnesty where Khmer Rouge elements are sincerely invited to defect without retribution and effective but cautious military pressure has turned Siem Riep province into a model of national reconciliation that has brought a level of peace and development unseen in decades.

In many areas long under guerrilla control, Khmer Rouge defectors have rallied to the government and continue to administer the same zones they did as guerrilla cadre. Four months ago, much of Ankor Chum district, 30 kilometers from Angkor temple, was at war, inaccessible to government forces. In January, after Pol Pot and other Khmer Rouge leaders ordered troops to kidnap and execute local officials, burn villages, and mine roads that connect the desperately poor communes, many long time cadre said enough is enough.

552 Khmer Rouge guerrillas in Angkor Chum alone defected to the government after their commanders cut a deal with provincial authorities. Last week, in a bizarre scene, hundreds of armed Khmer Rouge, still in their Chinese PLA style uniforms, lounged in village markets, flirting with vendors and providing security against the remnants of their former comrades now hunkered in small groups in the surrounding jungle.

"When we received the order to carry out the policy to attack the people and villages, I led the people into the forest to protect them, but of course then my commanders wanted to kill me," said Tung Yun, 38, who commanded two regiments of 600 guerrilla fighters until January. He smiled as a 152 mm artillery parked near his house shook the earth as it fired at his former Division commander, who with less than 75 men, had retreated to the jungle a few kilometers away. "Don't worry, I took all the big weapons with me, they can't fire back."

Tung joined the Khmer Rouge in 1974. "Wherever I looked in 21 years I never found a happy place," he said over lunch in a handsome village house that belongs to relatives. "The happiest I have been is now." Tung continues to command his troops, and the government now pays his salary and provides his ammunition. "I don't know why they are still fighting, I guess they just want power."

Meanwhile, the defections have meant unprrecedented levels of security in many areas of Siem Riep, allowing an array of development projects such as road construction, dam repair, demining around former front-line villages, and agricultural infrastructure improvements. These efforts have increased levels of local support for the government, further eroding the rebels' ability to appeal to the sympathies of long neglected villagers.

The Khmer Rouge leadership view forces like Tung's differently: "In certain units, 50 to 60% (of our troops) are organized enemy elements" who are "poisoned by enemy ideas", say written directives from Pol Pot and Ta Mok issued in late 1994 and obtained from defectors in Siem Riep.

But despite the clear-cut successes of the government in marginalizing the Khmer Rouge in Siem Riep, it stands in stark contrast to the other primary area of guerrilla influence-Battambang.
There, the guerrillas have been able to deflect government military offensives effectively and remain capable of sustaining themselves.

Cancerous levels of corruption from top to bottom in government and military abuses continue to be a major source of popular discontent and provide a ripe breeding ground for anti-government sympathy. Says a source close to the Khmer Rouge: "Corruption is the basis of the regime. Personal gain has replaced any ideology. Reasons to resist the government remain."

"The weakness of the DK should not be considered by itself. It should be considered in the framework of a balance of forces," says a source close to the Khmer Rouge leadership. "Even a weak DK remains something strong compared to this government."

Agrees Toan Chhay: "We need to strengthen the discipline of our own soldiers. It is not a Khmer Rouge problem, it is our problem."

In Battambang there have been no significant defections in recent years. Analysts say that the military and provincial government there is sufficiently corrupt and brutal that there is little incentive or atmosphere of trust that encourage the Khmer Rouge to come over to the government side. Human rights workers and government sources in Battambang say that the military continues to carry out murder, intimidation, and extortion of innocent civilians as well as families suspected of having Khmer Rouge connections. Government sources say that there have been several cases of Khmer Rouge forces attempting to negotiate to defect, only to be scuttled by local military leadership more interested in confrontation and revenge than reconciliation.

The legendary resilience of the Khmer Rouge organization should not be underestimated, say those who know the Khmer Rouge well. They point out that, except for their disastrous three years, eight months, and 20 days in power in the late 1970's, Pol Pot and his top cadre have lived underground in difficult jungle conditions since the 1960's fighting a series of governments considerably more formidable than the current regime.

But while these failures of the government may allow for the Khmer Rouge to continue as an army for years, there is little to indicate that they have a future as a political movement. The Khmer Rouge no longer seem to have a political program of significant credibility in the countryside. They are fighting for survival, say analysts, resembling warlords more than revolutionaries, rebels without a cause. Defectors speak of a hierarchy isolated, demoralized, and increasingly unable to get their troops to implement the directives of the leadership. Intelligence sources and defectors say that more moderate elements who favored a political solution to the conflict have waned in influence and more hard-line field commanders are on the ascendancy.

"The first priority of the DK has always been to defend and preserve their leadership and forces," says a source close to the movement. "It is the number one priority before launching offensives or actions against the enemy."

For the first time since they were ousted from power by the Vietnamese invasion in 1979, the Khmer Rouge are employing new tactics in the countryside that include targeting normal peasants and burning whole villages effectively abandoning their previous hearts and minds strategy.

"In 1979, we were on our deathbed. We should have died in 1979. Why didn't we die? Because even though we made alot of mistakes, and had many enemies who hated us... in every situation we have kept control of the countryside, and that is the reason we have been able to survive," Pol Pot said in a 1992 speech to senior cadre. "Our army was completely defeated and dismantled, but was rebuilt from the countryside. The necessity for us is the countryside, not communism."

But their renewed campaign of terror in rural villages - scores of which have been razed in recent months - have deeply alienated much of their previous base of support and many of their own fighters. Many of the villages are populated by families of their own cadre, who have abandoned the movement and joined the government after being asked to attack their own kin. As a result the remaining Khmer Rouge cadre in some key areas of the country have been denied access to food and provisions which came from these same villages.

"The Khmer Rouge strategy is to regroup, keep the struggle alive and tell the world they are still alive," said Toan Chhay. "Blow up bridges, lay mines. OK, we will rebuild the bridges again and again."

Both sources close to the Khmer Rouge and western intelligence officials confirm that the Khmer Rouge leadership has approved the use of terrorism - including urban attacks - as a new tactic. "Many people in the leadership want to use terrorism now. I can't be more specific," says a source knowledgeable of current thinking within the leadership. Western intelligence officials say they have hard evidence that the Khmer Rouge have sanctioned targeting westerners for terrorist attacks. Such attacks, analysts agree, would be extremely difficult to prevent because of widespread availability of weapons and explosives and lack of effective control of Phnom Penh by security services.

But perhaps most importantly, for the first time in 30 years, the Khmer Rouge have found that both foreign and domestic allies that were essential for the groups survival have evaporated. The United Nations, the US, and ASEAN who backed the Khmer Rouge-dominated guerrilla coalition during the Vietnamese occupation, now are focusing on strengthening the current government and helping destroy the guerrilla faction. The political and material support of China has halted. In recent months Thailand has gone to great lengths to diminish crucial cross border access. And the Khmer Rouge's former battlefield allies during the 1980's are now the internationally recognized government that emerged from the $3 billion UN peace plan that culminated in elections in May 1993.

In his Feb 1992 speech, Pol Pot predicted the current scenario: "Democratic Kampuchea (the Khmer Rouge) cannot be strong all on it's own. When these guys (UN and western powers) strafe everybody else and leave Democratic Kampuchea on it's own, it is possible for Democratic Kampuchea to be weakened. Once that happens they will attack Democratic Kampuchea and drag the other forces into joining with Phnom Penh. It would become an alliance between the West, the (Vietnamese), the contemptible puppets, and two of the three parties. If this were the case, then the Chinese, the Thai and ASEAN would all accept it whether they liked it or not... that is why we need friends among the three parties until the day we die, and we need (foreign) friends until the day we die." But if one thing is clear, the Khmer Rouge have few, if any, friends these days.

The crackdown on covert Thai military support has hurt the Khmer Rouge deeply, according to sources close to the faction. Without access to Thailand, the key guerrilla rear bases along the Thai border would be unable to sustain themselves, deprived of foodstuff, fuel, medicine and other key commodities. While smuggled support continues it is greatly diminished, sources close to the guerrilla faction say.

Meanwhile, the Khmer Rouge are now threatened with losing much of their main sources of gem and timber income. Thai businessmen and intelligence sources confirm that the vast majority of the gem fields near Pailin which brought millions of dollars a month to Khmer Rouge coffers in recent years, have virtually dried up.

In the Thai border town of Borei, where cross border gem trading was centered, most of the scores of banks and big gem companies have closed since last year. "Now it is small scale, nothing significant," said an Asian diplomat who monitors the trade. "In terms of economic strength, the Khmer Rouge are very shaky, unless they have a lot stored away."

Furthermore, cross-border logging through Khmer Rouge-controlled check-points is expected to be greatly diminished in coming months as the Cambodian government has vowed to end logging exports. "If the government has a policy not to issue logging licenses to Thai companies, the Khmer Rouge logging will finish," said the Asian diplomat. "Thai companies now get export licenses from the Cambodian government for Khmer Rouge logs."

The Cambodian authorities, motivated by kickbacks, issue licenses to Thai companies to take logs from KR border areas, effectively helping finance their enemies.

With an effective clamp down on logging in Khmer Rouge areas, which now allow trucks to cross in from Thailand smuggling other crucial goods to the guerrillas, these supplies would also dry up, say Thai border officials.

Intelligence estimates now put the fighting strength of the Khmer Rouge at between 5,000 and 6,000 regular troops under arms. About 2,000 of them are holed up in remote, sparsely-populated jungles of the far north, with the rest in the mountainous western provinces of Battambang and Pursat. Small pockets of guerrilla fighters - usually numbering less than 100 - remain in numerous jungle outposts in other areas of the country collecting "taxes" at gun point. They are more a minor irritant than a political threat.

Khmer Rouge sources and intelligence officials agree that the faction is suffering from significant ammunition shortages. In recent months Khmer Rouge radio has repeatedly called for villagers and soldiers to produce quotas of "pungi sticks" to defend bases. Analysts say that captured soldiers and defectors complain of ammunition shortages, and the guerrillas are stepping up campaigns to buy supplies from corrupt government commanders.

"It is similar to the situation in 1973 after the peace agreement signed with Vietnam," Pol Pot said in a communique to supporters in 1993. "At that time we were isolated from external support. We had to rely on the people and we had to get our ammunition from the enemy."

But what seems to be the Khmer Rouge's biggest obstacle to survival is their lack of any coherent political program that appeals to the population. Their directives to cadre and radio broadcasts are almost singularly focused on the ridiculous claim that millions of Vietnamese troops and civilians have flooded Cambodia as part of a massive plot by Vietnam to "swallow" Cambodia. But the racist invective - while attempting to appeal to deep strains of racial hostility many Cambodians harbor towards their eastern neighbor - rings particularly hollow in the rural areas of Cambodia where the war is conducted and virtually no Vietnamese have been seen since the Vietnamese army pulled out in 1989.

"Their line on the Vietnamese issue does not fit the reality in many parts of the country, particularly the north and west," says one Cambodian source close to the Khmer Rouge. "Once the people realize there are no Vietnamese, all the DK logic collapses."

"Most of us do not believe that Vietnamese control Cambodia," said former Khmer Rouge regiment commander Tung Yun who defected in January. "When we went to fight we did not see other nationalities. We fought because we were ordered to do so but in our hearts we did not want war anymore."

The Khmer Rouge daily attack the United States, Australia, and France who they say, in collusion with Vietnam, "are waging war against the Cambodian nation and people." But such talk also rings hollow to villagers who see millions of dollars of donor assistance coming in to build roads, healthcare, and other infrastructure development. For most Cambodians now, including many who once sympathized with the Khmer Rouge during the Vietnamese occupation, after 25 years of warfare, destruction, and disastrous political experimentation, there is little motivation to fight and no enemy except those who continue to wage war.

Khmer Rouge attacks late last year in Siem Riep province created 70,000 new refugees from poor rural villages, but most have returned home and vast areas of the province long under guerrilla influence are now with the government. Development workers who had been restricted because of security from many areas for years say that they are getting unprecedented access and security, much provided by former KR soldiers and supporters.

British and French NGO's are clearing thousands of mines from roads and villages. They are followed by UN-supported road building crews, many who employ Khmer Rouge defectors and their families. After the roads are built, other NGO's are entering to repair irrigation systems and provide veterinary health care.

"You can see in Siem Riep that many areas have suddenly opened up," said David Salter, chief project engineer for the International Labor Organization in Siem Riep, whose mandate is to build roads to rural areas. "Because of improved security, access to development has improved. Everyday we employ 1400 people. A lot of those people are defectors or their families. It brings them into the economic life and development process. When they have a job they protect their jobs. When the road gets built the value of their land goes up. When their lives are improved it encourages more defections and security is further improved and more development work can be undertaken."

Last week in Siem Riep town, scores of military officers and officials gathered to celebrate the Cambodian new year. "Together with the Khmer Rouge and the government working together we will build roads, build schools, build happy places," Toan Chhay said in a toast. Scores of drunken former Khmer Rouge and government officers cheered wildly.

In 1988, Pol Pot told his followers that "peace will bring many new complications" and the "enemy will come at us even more strongly, this time flush with money."

Said an ASEAN diplomat with long ties to the Khmer Rouge: "There is no way out now for the Khmer Rouge, they will die slowly."

Said Toan Chhay " I think it will take ten years to get rid of the Khmer Rouge now. Contain them, isolate them, development, development. It is a political strategy."

Uneasy boom in Cambodia

Uneasy boom in Cambodia

New Straits Times

February 13, 2000 | Zainon Ahmad

Zainon Ahmad
New Straits Times
02-13-2000
Uneasy boom in Cambodia
Byline: Zainon Ahmad
Edition: New Sunday Times;
Section: Opinion
Memo: (STF) - There is now peace in Cambodia but the general view is that stability will only be achieved when all the institutions of the state have been properly established and strengthened, reports Zainon Ahmad, who was in Phnom Penh and Siem Reap last week.

"ALL is not what it seems in Cambodia," said an Asean diplomat. Most foreigners stationed in Phnom Penh say the same thing when a visitor observes that the capital is booming and that tourists are once again flocking to the country.

Government leaders tell visitors that there is peace in the country following the UN-sponsored general election of 1993, that democracy has taken root and the Press is free. Others, including opposition leader Sam Rainsy and some non-governmental organisations agree that all is not what it seems in Cambodia. They say the peace is uneasy, the economy is a sham and there is no democracy.
"Cambodia is a dictatorship under the control of Hun Sen - make no mistake about that," said jounalist Nate Thayer of the Far Eastern Economic Review magazine to a group of Asian and German editors in Siem Reap last week.

Sam Rainsy of the opposition Sam Rainsy Party said there was no rule of law and as a result, mafia elements from Hong Kong and Macau had flocked to Cambodia.

But everyone agrees that there is now peace in the country, beginning with the election victory of strongman Hun Sen's Cambodian People's Party in the 1998 election.

People are finding employment in the small factories that have mushroomed in and around Phnom Penh in recent years. Shops are stocked with goods and restaurants are well patronised. They are also employed in the scores of hotels.

When asked about the state of things, government officials are quick to say that the economy is growing again after the so-called Asian flu. And they have figures at their fingertips.

They admit that Cambodia is still one of the poorest countries in the world but say that the one year of peace has attracted many investors and that the future looks good.

The economy is the Government's priority, they say. It has called itself "the economic government" as a strategy to convince prospective investors that it is business-friendly.

"The gross domestic product growth has been fairly consistent with our projections and we hope to achieve at least six per cent growth this year," said Kong Vibol of the Ministry of Economy and Finance at a Konrad Adenauer Foundation-sponsored meeting of Asian and German editors in Phnom Penh last week.

He and other economists spewed statistics to convince the editors that the economy is doing well and that the investment climate in the country is never better.

The editors were told that "the real GDP growth of Cambodia is based on the following: a forcast 3.8 per cent growth in agriculture premising on three factors - a 5.1 per cent increase in rice production, a six per cent expansion in production of other cereals and a 14.8 per cent growth in fisheries products.

Kong Vibol also said: "The goals of the Government's reform programme are poverty alleviation and the achievement of sustainable economic growth. This programme is premised on strengthening the rule of law and governance and tackling corruption."

To which Sam Rainsy said all the glossy statements were presented to convince the donor community that the necessary reforms were taking place and corruption was being eradicated.

An official of one of the European NGOs (there are almost a hundred of them from Europe, America, Japan, Australia and other countries spending money on projects in Cambodia) said because of corruption, Australia was pulling out from extending a helping hand to the Royal Cambodian Navy.

Most of the government economists said Cambodia had benefited tremendously from being admitted as the 10th member of Asean in 1998. But they were quite unsuccessful in explaining how. They would not even admit that it was another bid for legitimacy.

Some NGO officials said government ministers and officials were not used to explaining things to their people. And because of the obsequious nature of the Cambodians in general, they saw no need to do so. "And this perhaps explain why some leaders commit all sorts of criminal acts with such impunity," said an NGO representative from Europe.

In the 1998 general election, Hun Sen's party failed to win two- thirds of the seats in the National Assembly, necessary for any move to amend the constitution. The CPP (the former Cambodian Communist Party) had no choice but to coalesce with the party it ousted in a bloody coup in 1997 - Prince Norodom Ranariddh's Funcinpec.

Ranariddh, son of King Norodom Sihanouk, is now content to play his role as speaker of the country's Parliament - the National Assembly.

This gives rise to speculation that some form of a deal had been worked out which would lead Ranariddh to be the next king of Cambodia. But only Sam Rainsy dared to speak out. Or, as some put it, was foolhardy or crazy enough to speak out.

He told the meeting of editors it was one of the reasons why he wanted the procedure of selecting the next king to be made public. The people should learn to break free from the feudal mentality under which they had lived for hundreds of years.

In his new millennium message, he lambasted the ruling regime. He said: "The superficially revamped communist regime - under a thin veneer of monarchy which is nothing else than a facade of legality and democracy for an illegal and dictatorial regime - preserves and promotes this type of mentality which forms the moral foundation of the unacceptable present status quo."

When leaders of the CCP and Funcinpec appeared on radio and television to blast him, Sam Rainsy appealed to some foreign embassies to protect him.

Asked by the editors why he made such extreme statements, he said the message was meant to shake up the thinking of the Cambodian leaders and people.

But peace does not mean that no more murders and killings are taking place. Cases of extrajudicial killings abound. Other killings and murders continue with impunity.

Nate Thayer cited examples of impunity, including the failure of the Government to arrest anyone for the 1997 grenade attack that killed at least 17 people and injured more than 100, for the more than 100 extrajudicial killings of Funcinpec security officials following the 1997 factional fighting, and for the lack of action following the December acid attack against a 16-year-old girl police said was led by the wife of a Council of Minister's official.

"People with money are able to buy off people with power, and people with guns are able to buy off people with power," the journalist charged. He said Cambodian officials' links to criminal syndicates were key to understanding why institutions were as weak as they were now in Cambodia.

Nate Thayer blasted the business practises of Teng Bunma, who directs the Thai Boon Roong Group and heads the country's Chamber of Commerce. The tycoon has been barred from entering the United States because of suspected links to drug-trafficking. Teng Bunma has denied the allegations.

One government senior official agreed with much of what Nate Thayer said. "Someone has to say the truth," said the official who spoke on condition of anonymity.

There were also Cambodians at the talk who disagreed. National Television of Kampuchea deputy director-general Kem Gunawadh said: "Nate Thayer knows well about my country, but he doesn't understand the differences now compared to before. What he said was true before 1998, but not now."

Lao Mong Hay, the executive director of the Khmer Institute for Democracy and regular government critic, said: "He might have gone too far."

Despite the bleak picture of Cambodia as painted by Thayer, some visitors to Phnom Penh get a sense that the country is enjoying prosperity especially at night when the city is all lighted up.

Neon signs proclaim the numerous casinos and nightclubs. Far greater number of casinos and nightclubs, said one diplomat, had mushroomed on the western strip of the country bordering Thailand, which does not allow casinos on its soil. Thais and others cross the border in hordes to enjoy themselves there while Cambodians flock there to work.

While Cambodians have no money to gamble they are certainly doing it with their soul, remarked the diplomat.

(Copyright 2000)

Uneasy boom in Cambodia

 

Uneasy boom in Cambodia

New Straits Times

February 13, 2000 | Zainon Ahmad

Uneasy boom in Cambodia
Byline: Zainon Ahmad
Edition: New Sunday Times; 2*
Section: Opinion
Memo: (STF) - There is now peace in Cambodia but the general view is that stability will only be achieved when all the institutions of the state have been properly established and strengthened, reports Zainon Ahmad, who was in Phnom Penh and Siem Reap last week.

"ALL is not what it seems in Cambodia," said an Asean diplomat. Most foreigners stationed in Phnom Penh say the same thing when a visitor observes that the capital is booming and that tourists are once again flocking to the country.

Government leaders tell visitors that there is peace in the country following the UN-sponsored general election of 1993, that democracy has taken root and the Press is free. Others, including opposition leader Sam Rainsy and some non-governmental organisations agree that all is not what it seems in Cambodia. They say the peace is uneasy, the economy is a sham and there is no democracy.
"Cambodia is a dictatorship under the control of Hun Sen - make no mistake about that," said jounalist Nate Thayer of the Far Eastern Economic Review magazine to a group of Asian and German editors in Siem Reap last week.

Sam Rainsy of the opposition Sam Rainsy Party said there was no rule of law and as a result, mafia elements from Hong Kong and Macau had flocked to Cambodia.

But everyone agrees that there is now peace in the country, beginning with the election victory of strongman Hun Sen's Cambodian People's Party in the 1998 election.

People are finding employment in the small factories that have mushroomed in and around Phnom Penh in recent years. Shops are stocked with goods and restaurants are well patronised. They are also employed in the scores of hotels.

When asked about the state of things, government officials are quick to say that the economy is growing again after the so-called Asian flu. And they have figures at their fingertips.

They admit that Cambodia is still one of the poorest countries in the world but say that the one year of peace has attracted many investors and that the future looks good.

The economy is the Government's priority, they say. It has called itself "the economic government" as a strategy to convince prospective investors that it is business-friendly.

"The gross domestic product growth has been fairly consistent with our projections and we hope to achieve at least six per cent growth this year," said Kong Vibol of the Ministry of Economy and Finance at a Konrad Adenauer Foundation-sponsored meeting of Asian and German editors in Phnom Penh last week.

He and other economists spewed statistics to convince the editors that the economy is doing well and that the investment climate in the country is never better.

The editors were told that "the real GDP growth of Cambodia is based on the following: a forcast 3.8 per cent growth in agriculture premising on three factors - a 5.1 per cent increase in rice production, a six per cent expansion in production of other cereals and a 14.8 per cent growth in fisheries products.

Kong Vibol also said: "The goals of the Government's reform programme are poverty alleviation and the achievement of sustainable economic growth. This programme is premised on strengthening the rule of law and governance and tackling corruption."

To which Sam Rainsy said all the glossy statements were presented to convince the donor community that the necessary reforms were taking place and corruption was being eradicated.

An official of one of the European NGOs (there are almost a hundred of them from Europe, America, Japan, Australia and other countries spending money on projects in Cambodia) said because of corruption, Australia was pulling out from extending a helping hand to the Royal Cambodian Navy.

Most of the government economists said Cambodia had benefited tremendously from being admitted as the 10th member of Asean in 1998. But they were quite unsuccessful in explaining how. They would not even admit that it was another bid for legitimacy.

Some NGO officials said government ministers and officials were not used to explaining things to their people. And because of the obsequious nature of the Cambodians in general, they saw no need to do so. "And this perhaps explain why some leaders commit all sorts of criminal acts with such impunity," said an NGO representative from Europe.

In the 1998 general election, Hun Sen's party failed to win two- thirds of the seats in the National Assembly, necessary for any move to amend the constitution. The CPP (the former Cambodian Communist Party) had no choice but to coalesce with the party it ousted in a bloody coup in 1997 - Prince Norodom Ranariddh's Funcinpec.

Ranariddh, son of King Norodom Sihanouk, is now content to play his role as speaker of the country's Parliament - the National Assembly.

This gives rise to speculation that some form of a deal had been worked out which would lead Ranariddh to be the next king of Cambodia. But only Sam Rainsy dared to speak out. Or, as some put it, was foolhardy or crazy enough to speak out.

He told the meeting of editors it was one of the reasons why he wanted the procedure of selecting the next king to be made public. The people should learn to break free from the feudal mentality under which they had lived for hundreds of years.

In his new millennium message, he lambasted the ruling regime. He said: "The superficially revamped communist regime - under a thin veneer of monarchy which is nothing else than a facade of legality and democracy for an illegal and dictatorial regime - preserves and promotes this type of mentality which forms the moral foundation of the unacceptable present status quo."

When leaders of the CCP and Funcinpec appeared on radio and television to blast him, Sam Rainsy appealed to some foreign embassies to protect him.

Asked by the editors why he made such extreme statements, he said the message was meant to shake up the thinking of the Cambodian leaders and people.

But peace does not mean that no more murders and killings are taking place. Cases of extrajudicial killings abound. Other killings and murders continue with impunity.

Nate Thayer cited examples of impunity, including the failure of the Government to arrest anyone for the 1997 grenade attack that killed at least 17 people and injured more than 100, for the more than 100 extrajudicial killings of Funcinpec security officials following the 1997 factional fighting, and for the lack of action following the December acid attack against a 16-year-old girl police said was led by the wife of a Council of Minister's official.

"People with money are able to buy off people with power, and people with guns are able to buy off people with power," the journalist charged. He said Cambodian officials' links to criminal syndicates were key to understanding why institutions were as weak as they were now in Cambodia.

Nate Thayer blasted the business practises of Teng Bunma, who directs the Thai Boon Roong Group and heads the country's Chamber of Commerce. The tycoon has been barred from entering the United States because of suspected links to drug-trafficking. Teng Bunma has denied the allegations.

One government senior official agreed with much of what Nate Thayer said. "Someone has to say the truth," said the official who spoke on condition of anonymity.

There were also Cambodians at the talk who disagreed. National Television of Kampuchea deputy director-general Kem Gunawadh said: "Nate Thayer knows well about my country, but he doesn't understand the differences now compared to before. What he said was true before 1998, but not now."

Lao Mong Hay, the executive director of the Khmer Institute for Democracy and regular government critic, said: "He might have gone too far."

Despite the bleak picture of Cambodia as painted by Thayer, some visitors to Phnom Penh get a sense that the country is enjoying prosperity especially at night when the city is all lighted up.

Neon signs proclaim the numerous casinos and nightclubs. Far greater number of casinos and nightclubs, said one diplomat, had mushroomed on the western strip of the country bordering Thailand, which does not allow casinos on its soil. Thais and others cross the border in hordes to enjoy themselves there while Cambodians flock there to work.

While Cambodians have no money to gamble they are certainly doing it with their soul, remarked the diplomat.

(Copyright 2000)

COPYRIGHT 1999 The New Straits Times Press (M) Bhd. Provided by ProQuest LLC. All inquiries regarding rights or concerns about this content should be directed to Customer Service. For permission to reuse this article, contact Copyright Clearance Center.

Tycoon Says He Financed Hun Sen Coup; $1 Million Underwrote Cambodian Takeover

Tycoon Says He Financed Hun Sen Coup; $1 Million Underwrote Cambodian Takeover

The Washington Post

July 24, 1997

By Nate Thayer

A powerful Cambodian businessman and suspected drug kingpin says he gave more than $1 million in cash and gold to co-prime minister Hun Sen and his allies to fund a coup that ousted rival government leader Prince Norodom Ranariddh this month.

Theng Bunma, reputedly Cambodia's wealthiest man and a staunch supporter of Hun Sen, told Western journalists in an interview in Phnom Penh last week that he had called Hun Sen during the July 5-6 coup to offer his support. Among those present at the interview was an Australian television news crew, which made a tape available to The Washington Post.

"I gave him {Hun Sen} $1 million to do whatever to control the situation," Bunma told the reporters. "He asked me if I had the money in Cambodia. I said no, but I would send 100 kilograms {220 pounds} of gold in a plane into Cambodia." That amount of gold is worth about $860,000. Bunma, who is president of the Cambodian Chamber of Commerce and owns holdings worth an estimated $400 million in Cambodia, also said he paid three renegade members of Ranariddh's Funcinpec party $50,000 each to support Hun Sen's coup. The tycoon made it clear that he saw the takeover as good for his business interests, but he did not explain why he was revealing a role in bankrolling it. The U.S. government believes that Bunma, in addition to owning a hotel, a bank and an import-export company in Cambodia, is the country's biggest heroin trafficker. In the interview, Bunma reiterated his previous denials of involvement in drug trafficking. "I was accused of being a drug trafficker, and I am telling you, drug trafficking, I really hate that," he said. "I have never done it." In a briefing in Washington Tuesday, however, State Department spokesman Nicholas Burns said, "We have reliable reporting that he {Theng Bunma} is closely and heavily involved in drug trafficking in Cambodia." He said the United States "does not have evidence that links Hun Sen himself, personally, to these accusations of narcotics trafficking" but that "we think the Cambodian government can do a lot more to purge itself of obvious corruption in the government, of obvious linkages between . . . members of the government and narco-traffickers." In an interview with The Washington Post in Bangkok Saturday, Ranariddh charged that Bunma and another wealthy suspected drug trafficker, Mong Rethy, have long been bankrolling Hun Sen. "He gets money from them, and they are drug traffickers," Ranariddh said. "I ask now that President Clinton . . . make public the investigation of the {Drug Enforcement Administration} on drug trafficking in Cambodia," Ranariddh added. "The DEA knows clearly." "The mafia is now in charge in Cambodia," Ranariddh declared, saying he was referring to "people like Theng Bunma, who is very, very powerful." During the coup, more than 300 of Hun Sen's troops, backed by tanks, were dispatched to protect Bunma's property. In the interview last week, Bunma expressed appreciation for that action and support for Ranariddh's ouster. "I say what {Hun Sen} did was correct," Bunma said. "Why? One reason. Take the example of my hotel." Ranariddh's troops wanted to destroy it, he said, but Hun Sen "put three tanks and soldiers around to protect it." Bunma said that he gave $50,000 each to three Funcinpec politicians opposed to Ranariddh -- provincial governors Toan Chhay and Duong Khem and minister of state Ung Phan -- to "encourage them" and cement their support for Hun Sen's coup. According to Western military sources in Phnom Penh, Bunma also has provided Hun Sen in recent days with Russian-made Mi-26 transport helicopters to ferry troops to front-line positions in northwestern Cambodia to battle Funcinpec loyalists. The helicopters are owned by Bunma and piloted by hired Russian crews. Intelligence sources say the helicopters also have been used to carry Southeast Asian heroin to Cambodian ports as part of international smuggling operations.

Drug Suspects Bankroll Cambodian Coup Leader; Narcotics Traffic Booms as Loans, Gifts Flow

Drug Suspects Bankroll Cambodian Coup Leader; Narcotics Traffic Booms as Loans, Gifts Flow

The Washington Post

July 22, 1997

By Nate Thayer

When a prominent businessman and senior adviser to Cambodian co-prime minister Hun Sen was implicated in an attempt to smuggle seven tons of marijuana out of the country recently, a top official in the government's royalist faction vowed to seek his arrest.

"The court is preparing documents to arrest him now," Ho Sok, the secretary of state for the interior, said of the businessman, Mong Rethy. Hun Sen responded with a blunt warning: Anyone trying to arrest Mong Rethy, who had contributed more than $45 million to Hun Sen's development projects, should "wear a steel helmet," he said.

The warning turned out to be prophetic. During a coup two weeks ago in which Hun Sen ousted his rival co-prime minister, Prince Norodom Ranariddh, Ho Sok was hunted down by Hun Sen's forces and killed with a bullet to the head. According to Western anti-narcotics officials and Cambodian sources, Hun Sen has surrounded himself with suspected drug traffickers who bankroll his projects, lavish gifts on him and other leaders and seem bent on turning this country of 10 million people into an Asian narco-state. In recent years, Cambodia has grown into a major transshipment center for Southeast Asian heroin, a significant exporter of home-grown marijuana and a haven for money laundering. At least 120 tons of Cambodian marijuana were seized in Europe last year, and hundreds of tons more are believed to have gotten through, anti-narcotics agents say. Cambodia has become "the single fastest-growing narcotics transshipment point in the world," three U.S. senators complained in a letter to Secretary of State Madeleine K. Albright last month. Calling the drug trade a "critical threat" to Cambodia's government, people and future development, they said Phnom Penh "must take decisive action to halt the flow of narcotics through its borders and prosecute all government officials involved in narcotics trafficking." So far, however, the traffickers and corrupt officials have operated in Cambodia with near impunity. Of particular concern to the United States lately have been the activities of Theng Bunma, Cambodia's most powerful tycoon and president of its Chamber of Commerce. His Cambodian investments, which include a bank, hotel and import-export business, are estimated to be worth more than $400 million. He also owns a major holding company in neighboring Thailand, the Thai Boon Rong Group. Bunma has showered Cambodia's leaders with cash and gifts, including black Mercedes limousines, an airplane and helicopters used by Hun Sen and other top officials. And, according to a confidential U.S. government document, Washington believes Bunma is also involved in drug trafficking and has banned him from entering the United States. Bunma denies any such involvement. In a recent interview with Fortune magazine, he challenged accusers to produce evidence and arrest him. He also warned that he is a man of his word. "If I say I will shoot you, I'll really shoot you!" the magazine quoted him as saying. Mong Rethy also denies being a drug trafficker. "Many people have tried to harm me in this way before," he said. "They have alleged I and Theng Bunma have provided {Hun Sen} funds to construct schools, temples, roads and bridges through smuggling of drugs. This is untrue." He added, however, that he was sure he would not be arrested, because then "the school construction couldn't be finished." In an interview with The Washington Post on Saturday, Ranariddh said Hun Sen gets "millions of dollars" from Bunma and Mong Rethy. "They are drug traffickers," he asserted. "The Americans know well. Now the administration doesn't seem to care." A close ally and financier of Hun Sen, whom he often accompanies on trips abroad, Bunma travels on a diplomatic passport and holds the title of economic adviser to Chea Sim, the acting head of state and chairman of the ruling Cambodian People's Party. In 1994, Bunma gave $3 million in no-interest "loans" to the government to pay for military expenditures, according to Finance Ministry documents. He has funded the repair of Mao Zedong Boulevard, one of the capital's main thoroughfares, and has paid the salaries of much of the Cambodian armed forces since early 1997, diplomats and Cambodian officials say. A 1995 U.S. State Department report on Cambodia said: "There are indications that some high-level military officials and powerful businessmen who give financial support to politicians are involved in heroin smuggling." A U.S. official familiar with that report said it referred to Bunma. "We consider him a major trafficker," said another senior U.S. anti-narcotics official, "We have followed him for a long time." But despite State Department warnings that drug-corrupted governments would have "difficult relations" with Washington, the U.S. government has appeared ambivalent about confronting Cambodian authorities on their relationship with drug syndicates. In February 1994, then-U.S. ambassador Charles Twining warned a Cambodian cabinet minister that Bunma was a drug trafficker and asked that the government distance itself from the tycoon, Cambodian officials said. The same month, however, the U.S. Embassy issued Bunma a visa to attend the National Prayer Breakfast in Washington, an event organized at Congress and presided over by President Clinton. Mother Teresa was the keynote speaker. After hearing Clinton's speech, Bunma was granted a meeting with U.S. officials at the Pentagon. In May 1995, Bunma was again issued a U.S. visa as a member of Chea Sim's delegation on an official visit to Washington. Bunma paid the large delegation's bills at the posh Willard Hotel, according to hotel sources and Cambodian diplomats. Since then, Bunma has been barred from returning to the United States, but he seems to have grown even more influential in Cambodia. On Jan. 7, 1996, at the dedication of a new "Hun Sen Park" that the tycoon financed in Phnom Penh, Hun Sen declared that he would "never abandon" Bunma, "who has helped our party." On the VIP dais to observe the ceremony were both Bunma and the U.S. Embassy's charge d'affaires. Var Huoth, Cambodia's ambassador in Washington and an ally of Hun Sen, called Bunma "a big trader in Cambodia" but someone about whom "nobody knows" very much. He acknowledged rumors about Bunma's involvement in drug-running, but declined to respond to the allegation. "We are the victim of trafficking from abroad," he said. In a report to Congress in March, the State Department praised Cambodia for "significant efforts in 1996 toward addressing its drug trafficking and transit problems." The report certified the Cambodian government as "fully cooperating" on counter-narcotics efforts. But according to Interpol documents, the seizure by foreign law enforcement authorities of drugs originating in Cambodia increased in 1996 by more than 1,000 percent over 1995. Foreign authorities are especially concerned about large shipments of heroin that cross from Laos and Thailand to Cambodia's long seacoast. The traffickers "are using government planes, helicopters, military trucks, navy boats and soldiers to transport heroin," said a U.S. official who tracks the Cambodian drug trade. "There are definitely more drugs coming through Cambodia this year than before, but what can I do?" said Police Gen. Skadavy M. Ly Roun, who heads Cambodia's national anti-drug force. He said serious enforcement is next to impossible because of political infighting, corruption and the involvement of powerful figures. Staff writers William Branigin and R. Jeffrey Smith in Washington contributed to this report.

"Historical Ties" Underpin French Aid

"Historical Ties" Underpin French Aid

Phnom Penh Post

Friday, 26 February 1993

By Nate Thayer

 

When one turns on the television in Phnom Penh these days, one can be treated to French movies and game shows beamed from Paris. Radio France International now broadcasts 24 hours a day here, with a new studio and transmitter, and a new French language newspaper hit the streets last week.

Any morning of the week hundreds of people throng outside Alliance Francaise-one of the biggest in the world-as they take advantage of friendship prices to promote French language and culture.

But on the back streets of Phnom Penh, the hundreds of private language schools that have popped up are almost all teaching English, and of the more than 100 billboards now lining the road to the capital from the airport, only five are in French. It is a sign of a battle for cultural influence that has France fighting against a strong-some say inevitable-tide of Asian influence that most think will dominate the country in the post-war period.

When French President Francois Mitterand arrived in Phnom Penh on 11 February with a delegation of 270, it was a culmination of not-so-subtle French efforts in recent months to position itself to have dominant influence when Cambodia emerges with a new government after U.N.-sponsored elections.

Mitterand's visit was the first of a Western head of state since Charles De Gaulle in 1966, and came on the heels of a steady stream of high level French visitors since the signing of the Paris accords, including the foreign minister and the defence minister.

The French push in Cambodia has far exceeded efforts of any other Western power, and has come up against criticism by some for subordinating long-term Cambodian interests in order to promote French national interests in Cambodia.

The Paris Peace Accords-of which France is cosponsor with Indonesia-calls for foreign countries to deal only with the SNC-the interim body which groups the four former warring factions to work with the United Nations Transitional Authority in Cambodia (UNTAC) until a new government is formed after elections later in 1993.

But France has begun a number of bilateral arrangements with the current authorities in Phnom Penh. In January, more than 700 municipal officials from Phnom Penh gathered for a conference sponsored by Phnom Penh's sister city, Paris, on urban planning and development. France has had officials giving training and advice to the Phnom Penh authorities police force since last year. And France has pledged more than 20 million Francs for refurbishing the badly dilapidated Phnom Penh water and electricity systems.

Senior Cambodian sources say that France has offered to provide major military assistance to the new government that emerges from U.N.-sponsored elections. "They said just do what you need to do to form a new government and we are prepared to give you whatever you need," said one senior official. Three separate senior French military delegations have visited Phnom Penh since last fall, which include private meetings with leaders of the factions likely to assume power in a new government.

France's approach to bypass the letter of the terms of the peace agreement by dealing officially with the individual factions has caused friction with other permanent five member of the U.N. security council. "The other governments are abiding by the agreement which say bilateral agreements have to go through the SNC," said one senior UNTAC official, "but the fact is Cambodia needs the help and some of it is just sour grapes from the Anglos."

The French friendly relations with the authorities of the Vietnamese installed State of Cambodia regime has drawn a constant stream of Khmer Rouge vitriol in recent months, with accusations of a French plot to recolonize Cambodia in conjunction with the Vietnamese.

Indeed France has pledged major funding for recreating Cambodia's badly dilapidated educational and medical structures, and those that complain are offering little alternatives. French officials contend that their aid is going for the rebuilding of the country and will benefit whatever new government comes into power. "The international community has requested help. There is no long term scheme for development, people are thinking of short term benefits that have no benefit for Cambodia with the money leaving the country. In fact, we have no real economic interest in Cambodia. We want to be a partner in knowledge, not buying the country," said one French diplomat here.

But critics say that the French assistance to rebuilding the education structure could reinforce Cambodia's isolation, by France's insistence that any French aid be contingent on instruction being in French language.

While France has launched a multi-pronged approach in Cambodia that includes high profile political delegations and economic assistance, all their efforts are dwarfed by a major push of language and culture, which they see as an instrument of promoting and ensuring French influence in the region.

The Alliance Francaise in Phnom Penh has more than 8,000 students, far exceeding any English language institutions in the country. According to French government briefing papers, another 7,000 Cambodian students are studying French from four to 14 hours a week. Cambodia was invited to attend the last summit on Francophone countries, and the secretary of state for International Cultural Relations and Franco-phonie has visited Cambodia twice in recent months. The Ministry of Cooperation-the French cultural and other development arm, which previously was limited mainly to Africa and never before in Asia, has pledged 40 million Francs to Cambodia this year.

France has pledged a minimum of 150 million Francs for 1993, and French sources say that will increase significantly in coming months. Sixty-five million Francs is destined to rebuilding Cambodia's health sector , with a concentration on training at the Faculty of Medicine in Phnom Penh. The other targets include the Faculties of Economics, Law, the Technical institute, Institute of Agriculture, and the creation of a school to train civil servants.

Efforts to attract French business have not taken off, with limited investment in banking, oil exploration, construction, and hotels, and rebuilding Cambodia's formerly French run rubber plantations, among other areas. When Foreign Minister Roland Dumas visited Phnom Penh in November 1991 with more than 100 top French businessmen, it resulted in few major French investments, diplomats say. French Embassy sources say that France is Cambodia's 5th largest partner for imports, and 16th for exports from Cambodia. The Banque Indosuez has recently opened a branch in Phnom Penh.

For Cambodia, "there is no more strategic value or real economic value," said one senior UNTAC official, "there is no serious interest here for the big powers. It is mainly greasing the road to Vietnam." This may be why no other major economic power has seriously set the stage for a big political or economic push here. But for France it is different set of considerations.

France continues to view Indochina as the jewel of the French empire, and much of their efforts seem to reflect a sentimental fondness of the grandeur of yesteryear. The three former French colonies here are seen, according to diplomats, as France's only chance to maintain a foothold in Asia, where they have failed to penetrate significantly, other major areas, such as Japan or China.

During the drawing up of the terms for implementation of the peace agreement at U.N. headquarters in New York in the fall of 1991, France became embroiled in a contentious debate with other architect countries of the peace agreement with their demand that French be the official language of the U.N. operation in Cambodia. While settling for dual official languages of English and French, the issue has continued to be a source of rancor. The French Ambassador to Phnom Penh stormed out of a U.N.-sponsored Human Rights conference in December after the program was not presented in French, on top of a planned program of Khmer and English. French diplomatic sources say that the French Ambassador has sent a memo to embassy staff ordering them to refrain from speaking English when possible. "The situation of French in Cambodia calls for neither triumphalism nor defeatism," declared a recent French briefing paper on Cambodia, "situated primarily in an anglophone and sinophone region, Cambodia has, more than all other countries in Asia, maintained it's attachment to French language and culture."

Aside from the high profile television, radio, and language operations, the battlefields are drawn in an increasingly contentious debate over the higher education systems in Cambodia.

After the Khmer Rouge period, when education was abolished, Cambodia entered into more than a decade of Soviet influence, where a rudimentary higher education system was created, with Russian language courses taught in the universities. Several thousand students studied in Phnom Penh or the former Soviet Union. But with the breakup of the Soviet Union, Russia abruptly halted it's aid programs, which included courses taught mainly in Russian language by Russian teachers. Hundreds of students at Phnom Penh University and the other faculties here, many who devoted years of their youth to the mastering of Russian, were left stranded with useless language skills and interrupted instruction.

Since early 1992, France has begun a major push to take control of the institutions of higher learning in Phnom Penh, offering assistance of teachers, textbooks, and curriculum development for the faculties of law, medicine, economics, as well as Phnom Penh University. But French assistance is largely contingent on instruction being limited to French language, causing many to qustion whether France has Cambodia's best interests at heart.

At the Faculties of Medicine and Economics, French assistance is contingent on students studying 14 hours a week of French language. At the law school, some U.N. officials claim that the French have blocked other offers of law courses because instruction would be in English. And aid for the resumption of courses at the Khmer-Soviet Technical Institute has been held up because some agencies are balking at French demands that if they fund the courses, which are to replace the halted Soviet aid, it must be contingent on "no English language curriculum."

"French is easier than Russian, but now 99% of the people in Phnom Penh speak English," says Douch Samedy, a student at the Technical Institute. "Only English will make it easier to find a job. I am worried about finding a job, but to study I must speak French."

But the French response is simple. "We are renovating building, providing teachers-the full project from a to z. We are not going to pay for everything in order for the courses to be taught in English. It will be development as the French do it," said one French diplomat.

Many Cambodians fear that higher education being limited to French will seriously impede the ability of Cambodia to reintegrate with regional and world economic powers who are poised to resume dealings with Cambodia once a new government is formed later this year. "I studied French for 22 years and I can't even by a bowl of noodles in Thailand," says one Cambodian who works for the U.N. here. Others remember being reprimanded as a child for speaking their native Khmer language during school hours. French primary and secondary school curriculum was taught in French before 1970.

Critics of the French aid programs say that Cambodia's natural and inevitable commercial and political partners in coming years will be dominated by ASEAN, Japan, and other Asian countries such as Hong Kong and Taiwan.

"Learning in French instead of English is going to do Cambodians about as much good as Russian did them," said one university faculty member. "The French say that Cambodia has entered the francophone community, but the region is anglophone, and the people they are going to have to deal with will speak English."

But observers here say that the French efforts to bring Cambodia into the community of franco-phone nations is destined to fail because the inevitable trends point toward ASEAN and Japan dominating the region in the post war period.

"The most France can hope for is a French flavor here," said one Cambodian official. "But when we need money, where are the anglo saxons. In the end, the French efforts are destined to fail. It is based on an illusion that they can recreate the past."

"ASEAN and Japan are going to swamp this place," said one western observer, "And then, no matter how much money they put in, the French language is history. It will be the end of the game."

Thai Border: A Wild West of Anarchy

Thai Border: A Wild West of Anarachy

Phnom Penh Post

Friday, 20 November 1992

By Nate Thayer

BANGKOK, Thailand-Thai officials, black market traders, and U.N. workers who have operated on the Thai-Cambodian border for years say U.N. efforts to impose economic sanctions against the Khmer Rouge will be virtually impossible to enforce.

The U.N. hopes to pressure the Khmer Rouge into rejoining the deadlocked peace process, in part by sealing the 830-kilometer border, where Khmer Rouge timber and gem concessions add millions of dollars a year to the coffers of the powerful guerrilla faction.

Except for a strip of only a few kilometers near the Thai border town of Aranyaprathet, the central government is not in control of most of the border, from the Gulf of Thailand to Laos.

Aside from the Khmer Rouge, the Cambodian-Thai frontier is home to a powerful plethora of shady businessmen, rebel groups, warlords, fortune seekers, gangsters, and assorted bad guys who have operated without serious hindrance for generations.

Since the days of the anti-French resistance in the 1940s, Khmer rebels and outlaws have used the sanctuary of the mountain and jungle escarpment to fight whoever was in power in Phnom Penh. Scores of other warlords have maintained small armies that control trading routes.

Since 1979 the border has been home to the three Khmer resistance factions. The signing of peace accords in October 1991 resulted in the factions' foreign backers cutting off all supplies, forcing the groups to seek revenue elsewhere.

Now that there is "peace" in Cambodia, some of the rebel armies have embarked on an orgy of lucrative trading. No longer under the control of their nominal commanders, dozens of separate military units are carving out control of their own plots of Cambodia, selling everything from toothpaste to surface-to-air missiles. While some of the trading ends up in the central coffers of these groups, most is controlled by loosely-monitored bands of independent operators.

With the peace plan mandating that the Cambodian armies disarm and turn their weapons over to the United Nations, many of the soldiers have opted for a more profitable alternative. The frontier has turned into one of the biggest arms bazaars in Asia, with thousands of weapons being sold in recent months.

Arms traders recently offered the Phnom Penh Post a selection of SAM-7 surface-to-air missiles at 280,000 Baht (U.S. $11,200) each. Tanks, helicopters, artillery, and assorted light weaponry and ammunition are also available.

Intelligence officials and black market arms dealers say that the border has attracted representatives of a number of groups from around Asia looking for weapons. They say that the notorious Burmese drug warlord Khun Sa recently purchased two surface-to-air missiles, as did anti-Burmese Karen rebels. Anti-government guerrillas from the Philippines and Sri Lanka have also made inquiries, as have representatives from Sikh separatist organizations in India and Muslim separatists from the Burmese-Bangladeshi border.

"I think you should buy them," said the arms dealer with a look of alarm. "Some of the people I am dealing with seem to be very dangerous people. It is better that you have them all.''

Black market traders on the Thai border, who operate easily with Cambodian guerrillas as well as Thai officials, say that processed heroin is available for sale, as are ancient Khmer artifacts looted from temples, and even uranium.

The border has also turned into a freeway for cars stolen in Thailand and slipped over the border, where hundreds of vehicles have showed up in Phnom Penh to be openly sold in the markets. Some are seen with military license plates of the Phnom Penh regime attached to make transport across western Cambodia less difficult at checkpoints.

Across from southeast Thailand, more than a 100,000 Thais and Burmese have crossed the border to seek their fortune in Khmer Rouge-controlled ruby mines, a major source of income for the faction. The miners say that they can carry out handfuls of gems worth millions of baht in their pocket, and they laugh at the thought that the blue-bereted UN peacekeepers will be able to stop them.

Thai Minister of Parliament Thanit Traivut, who represents the border province of Trat adjoining the Khmer Rouge-controlled gem mines, told the Post that 57 Thai companies now operate in the ruby area, with nearly 1,000 earth-moving vehicles. He said that U.N. sanctions could cause the companies, which have invested more than 3 billion Thai baht on equipment, to lose their shirts.

One rai (1,600 square meters) of earth is leased to the mostly small companies at a cost of 2 million baht (U.S. $40,000). Whole divisions of Khmer Rouge fighters have turned into "economic cadre" to provide security, build roads, and check permission papers of the Thai miners. The miners say that no Cambodians are allowed to work in the area.

On the northern borders, controlled by the notorious one-legged Khmer Rouge commander Ta Mok, Thai logging companies said to be linked with senior members of the Thai military have paid millions of dollars for the right to cut logs in Cambodia.

The Thai government has sold the rights to 17 entry points to Thai companies who in turn are given the right to tax logs coming into Thailand. Senior Thai officials are reportedly on the receiving end of some of the profit.

According to traders, the highly-secret Thai intelligence unit known as 838, which was responsible for covert liaison and weapons supplies to the Khmer Rouge during the 13-year war against the Vietnamese, receives 40 baht (U.S. $1.60) for each cubic meter of wood that crosses into Thailand.

Through a complicated procedure of payoffs, Thai loggers pay fees of around 5,000 baht (U.S. $197) per cubic meter for soft wood, and considerably higher for hardwoods. Several Thai companies, known to be controlled by Thai organized-crime groups, are involved in the logging concessions, with the sanction of several well-known Thai political figures.

Thanit Traivut, in an interview with the Post, said that UNTAC officials have asked Thailand to be prepared to close the border by the end of the year. He said that Thailand "will request to postpone [implementation of sanctions] until next year in order to allow Thai companies to recoup their losses.''

Furthermore, the Phnom Penh regime is involved in buying logs from their enemies-the Khmer Rouge-paying fees to the Khmer Rouge in many areas in order to transport logs through Cambodia, often to the port at Kompong Som. This adds further complications to the effectiveness of U.N. sanctions, which are not directed at the Phnom Penh regime.

In case U.N. officials are looking for reference points to study in their effort to impose the sanctions, they need look no further than the Thai border to the west with Burma.

There Khun Sa, reputed to be the world's number one opium trader and with a U.S. arrest warrant à la Manuel Noriega on his head, controls a section of Burma from which he exports the drug through Thailand.

Despite the efforts of hundreds of U.S. drug and intelligence agents, and with the stated support of both the Thai government and military, the flow of opium and its derivative heroin continues virtually unabated.

One Thai weapons trader, reflecting on the reaction of the Khmer Rouge if the United Nations attempts to cut its purse strings, said: "Right now the Khmer Rouge do not hurt the U.N. But if the U.N. does that, they will have to kill them. You know, they don't like foreigners anyway."

Another Thai arms dealer, with long experience running weapons through Thai borders with several neighboring countries, said: "It will be easy to order sanctions, but impossible to enforce. The order just comes from air-conditioned rooms. But in the field, too many people are making money."

 

 

Cambodia has hope to rebuild in peace

Cambodia has hope to rebuild in peace

Chicago Sun-Times

November 17, 1991 | Nate Thayer

PHNOM PENH, Cambodia The return of exiled Prince Norodom Sihanouk after the signing of a peace accord kindles a desperate desire among Cambodians to rebuild their ruined land.

Sihanouk's emotional return Thursday to lead a national reconciliation council is filling the southeast Asian country with hope that peace may finally come after 21 years of war, genocide and famine.

Yet a halt in the fighting isn't enough, many say. Unless the ruined economy is infused with massive international aid, political stability will be elusive.

"Everyone is happy the war will stop,"said Sarouen Sok, a 24-year-old student. "But we need foreign aid to help us. We need to only spend money now that will rebuild our country."

Many are pinning their hopes for peace on the foreign troops that have started to arrive under the terms of a United Nations-brokered peace accord signed in Paris last month.

The treaty was signed by the Vietnamese-installed Cambodian government and the guerrilla groups that fought it for 13 years: the detested Khmer Rouge and two non-Communist factions.

Under the accord, the peacekeepers will monitor a cease-fire and help administer elections scheduled for 1993. Until then, the Phnom Penh government will rule the country, advised by the Sihanouk-led Supreme National Council made up of the four warring factions.

Since the first contingent of UN troops arrived from Australia this month, thousands of Phnom Penh residents have gathered to stare in wonder at their headquarters in the capital.

Many residents have expressed hope that the troops not only will help prevent renewed fighting but also will prevent a return to power of the Khmer Rouge, whose three-year rule starting in 1975 led to hundreds of thousands of deaths.

Beyond peace, the wants of most Cambodians are simple. They would like to have enough rice to eat, decent medical care and a homeland free of the legacies of war, including the millions of land mines that remain planted throughout the countryside.

By almost every yardstick - per-capita income, child mortality, disease - the country is among the world's most deprived nations.

Analysts and officials say that if the economic conditions aren't addressed, instability will continue.

"If people are hungry, they will be in bad temper," Deputy Foreign Minister Long Visulo said in a recent interview. "If people are full, the situation will be calm. Foreign investment and economic development will help us solve the political problems."

Yet many Cambodians also worry about the new interim council, since its members are a bitter reminder of the failed leadership of the past.

Miners risk all for Cambodia rubies

Chicago Sun-Times

January 27, 1991 | Nate Thayer

Associated Press

BORAI, Thailand Thousands of fortune hunters risk land mines and malaria digging for rubies in the war zones of guerrilla-controlled western Cambodia.

Ruby fever has gripped this border town. Miners tell their adventures in bustling poolrooms and bars.

Lucky miners make fortunes, as in the gold rushes of the American West in the 19th century. They emerge from the jungle with pockets full of rubies.

Wutipong Sophapong, owner of a gas station in Borai, sat on his back porch fondling several hundred gems - dug from his yard in a single day, he said.

The Khmer Rouge captured the area east of Borai in 1989 and opened the border to Thai miners to help finance its war with Cambodia's Vietnam-sponsored government.

About 50,000 miners a month trek over the Ban Thad Mountains into the Cambodian jungles, according to Thai authorities. They say hundreds have died there, about one-third return with deadly cerebral malaria and others lose limbs to land mines.

Despite the risks, newcomers arrive every day.

"Over this mountain a few days' walk, you just stick your hand in the ground and the dirt is filled with red jewels," a miner said, his eyes sparkling while he waited to be checked for malaria.

The Khmer Rouge, who abolished money and all forms of private enterprise during their brutal 3 1/2 years in power, now oversee a sophisticated mining operation that miners and provincial officials say brings them millions of dollars a month.

Each miner pays the equivalent of $60 for access to the region and can keep whatever he finds. Officials say the windfall may allow the Khmer Rouge to buy weapons on the black market if supplies dry up from China, which is among the world powers searching for a peace formula in Cambodia.

Borai District officials estimate that more than 100 million baht ($4 million) change hands every day in deals over rubies.

"There are a lot of 3 or 4 million baht stones," the district chief of Borai said. "The most valuable one so far went for 24 million baht," about $1 million.

Less than a yard from where Wutipong sat on his back porch, the yard disappeared into a 100-foot-deep hole the size of a football field. The hole was filled with pumps, workers and two cranes worth $280,000 each, which the gas station owner bought after striking it rich a few months ago.

"There is an old canal under my house and we found rubies on both sides, so we are going to tear down the house in a few weeks," he said.