12 Approved For For Release 2002/01/28: CIA-RDP75B00380R0002000500414----
MEMORANDUM FOR: Director of Central Intelligence
VIA:
SUBJECT:
REFERENCE:
2 8 DEC MS
a /*CM
Deputy Director for Operations
Jack Anderson 27 December Article Regarding
..Congressman Lester Wolff
1. Action Required: None. This memorandum is for your
information.
2. Background:
A. The attached 27 December 1973 Washington Post article
by Jack Anderson discusses Congressman Lester Vilff's proposed visit
to Southeast Asia. According to Anderson, Mr. Wolff has agreed to
provide his services as a mediator during negotiations with the
Loi Maw KKY (Shan United Army) for the release of two Soviet medical
?. technicians currently held by the Loi Maw.
B. Your attention is called to the "footnote" in the
third column wherein Anderson claims that "the Shans say that they
are also willing to burn a ton of opium for Wolff to prove they
can deliver the deadly drug in tonnage lots." The ton of opium
referred to in the Anderson column corresponds
that the Shan State Army was arranging for
the delivery of 600 viss (2010 pounds) of "goods" to the Thai-
Burma border to give to Mr. Wolff. The opium was scheduled to
reach the border by late December 1973.
C. Please note that the group holding. the Soviet
medical technicians (Loi Maw Or Shan United Army) is a separate
insurgent faction from the Shan States Army (SSA) which is the
group in contact with Mr. Wolff. The delivery of the ton of
opium to Mr. Wolff is a separate, although possibly related, mat-
ter from the release of the Soviet medical technicians. Pre-
sumably the SSA is offering to place Mr. Wolff in contact with
the Loi Maw. We have no information to indicate that Mr. Wolff
has ever been in communication with the Loi Maw.
E2 IMPDET
CL BY 039806
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D. During a 15 November 1973 briefing for Mr. Wolff by
CEA, Mr. Wolff expressed considerable interest in the status of the
Soviets and inquired about the feasibility of a visit to the tri-
border area. It now appears that at the time of this briefing Mr.
Wolff was already weighing the merits of the SSA proposal for him
to act as a mediator in the Soviet case.
E. 'During December 1973 General .Kriangsak, Deputy Chief
of Staff_of the Royal Thai Supreme Command Communicated to American
Embassy?
25X1A inal negotiations for theSoviets' re-
ease on a uniiaterai OaSIS. Since that time the U.S. Government has
- not been directly involved in the negotiations with the Loi Maw.
Discussions with Kriangsak by both Embassy and
25X1A any significant progress in their
efforts to obtain the Soviets' release.
3. Staff Position:
A. Mr. Wolff .is apparently seriously planning to: go to
the Thai-Burma border area for direct discussions with representatives
of 'the Silan- SLate- Army and possibly representaLives of Lhe Loi
It is not known whether Mr. Wolff will deliver the demands of the Loi
Maw to the American Embassy in Bangkok or deal directly with the
Soviet .Embassy. The SSA seems to retain hopes of a deal with the
:U.S. Government involving the sale and destruction of a large- quantity
of opium, thus taking it out of the world market. This proposal
could play a role in the upcoming Wolff-SSA talks.
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Chief, East Asia Division
Attachment
As stated
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By Juck Athlerson - -.
In an international intrigue
worthy of James Bond, a mild,
bespectacled congressman has,
been called on by wild Burmese
rebels to negotiate the freedom
lof two ,kitinaped Russian doe-
The Capitol Hill 007. is Rep
Lester Wolff (D-N.Y.), :who- won
the. Shan guerrillas' confidence
last August during a trip to
Southeast Asia. As chairman of
Ifonao narcotics subcommit-
tee, -Wiiiff brought liaek the.
Shan offer to burn 450 tons
ay; u in for man on. ?
This would havtt drained the
opium from the world market
and cut off .part of tile U.S. her-
oin supply, at the SOLUTO. Al-
though the State Department re-
jected the 'offer, the Shans came
to trust Wolff. and have now-
asked hint to help out with on
even stranger deal. ? . . ,
Last April, at the isolated
Burro, eae village of ,Taungyi,
two humanitarian Russian doe--
torn were working at the Soviet
hospital when a force of Shan
rebels, descended on them and
dnapell them ,at gunpoint. The
rebels, according to our Shan
searctai, had laeped to grab the
Russian 'ambassador to Burma
who was supposed to be visiting
the hospital at the tune:, ? ?
Th tdr purpose was to hold him
as ransom In the return of se-
Shea icadors now 'in
made off with the two phytii-
clans. Our sources say the pair
have been moved from one re-
mote camp to another N.vhile the
Russians and Americans, coop-
erating secretly, have sought to
free them. Meanwhile, the
Burmese have refused the kid-
.
nap clemanda ,??';
. ? .
At one point, we started to
break the story but 'yielded to;
State :Department'phadings
that publicity might endanger
the rescue efforts and perhaps
result in the doctors' dcathil.
A days age, hey:aver, in-
formation reached us from the
far north regions Of _Burma
that the rebels were interested
in freeing the doctors. '
' ' a ?
. "The two, Russian doetera axe
(with) Kiln Siang of the SE.:1A
(Shan United Army) Who origi-
nally captured them," said the
cryptic message. "The Russian
embassy in Bangkok has asked
for mediation) ? with -? ICun
Siang.". - ???
? The Mediator selected by the
Slums is Lester Wolff. Ti:ley feel
if Wolff helps thorn to work out a
fair deal on the Russians, it will
increase the Shan' world credi-
bility. ? ?
Reluctant at first to leave, his
congressional chores, Wolff has
noW decided to do the risky, hu-
manitarian thing.- He has
agreed. to serve as an "honest
d ? #
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71,13-r?d;Yipz....i. 27, )5173 - DT 7.
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takes to free the two Clots.
:Footnote: The Shans:say they
are alsowill ijg to burp a ton of
opium for Wolff to. Prove they
can deliver the deadly drug in
ton o ki-ae lots. They promise to do
it 'without the cheating that
'went into (General) Lao Li's sim-
ilar deal two or. three years
ago." The "cheating" refers to a
mix of opiann and vegetation
that was pawned-off for $1 mil-
lion on the United States in.
Thailand. When we exposed
what - happened, the White
tfouse rte gad a aound-tinal-lial.i
press conference to insist the
opium \VW; pure and to de-
nounce us as 'liars. We backed
op our story by quoting from the
secret CIA ?taccount of the mil-
lion-doll al. swindle. Now we are
happy to print this additional
unsolicited substantiation f:of
an- original stozy. , 4 ?
. MM.= for Christmas?Con-
gressmen received a $2,million
Christmas present from a be-
nevolent House Administration
Committee in the form of an in-
crease in their office' allow-
ances, , ? - ? ,
? ?
. Chairman Wayne- Hays
Obialaestowta9. the gilt in a let-1
ter to his colleagues. With 'kind
personal regards," ho informed
them that next session each con-
gressman could dip into the sta-
tionery 1:0,10mmee for a total of
$5,1150. increase will cost
rnic:so go,,T..f-Ament custody, broker" and fly to the rugged tha more. than
...(amtraatafra;:turo SyntiicAta?
lyinj 's "v, taay Shan territoay, if, that is 'what it? COO
; . . .
This ?little extra is particu-
larly appreciated, because the
stationery allowance is So curl-,
:ously unrestricted that a ce. ?
;
:gressman may pocket the entire
;amount if he wishes.
? All earlier hays circular an---
;nounced a quarterly increase in.
the telephone -service to their
home districts?a small adjust-
uncut that will add about
.000 to the taxpayers'-bill.
? A '25i per Cent increttae was
:also. granted in the unit allow-
for 'aangaztal'aaal
!phone and telegraph service:
Although the- ultimate Cost is
hard to pin down, it. may.run as
high as million a y8ata '
But -that's not all. Congress-
men have 01.5.0 been given an in-
crease in the amount; they can
spend for "official" expenses in
their offices back home. This
will-cost the taxpayers another
'4151,000.? -. ?
. ? -
There was. still another special
gilt from the thoughtful Hays. -
Unexpended clerk?hiro, funds "
up to $250 per month, -under the
new arrangments, can be spent
upon congressional mail. This.
means the taxpayers could wind
up footing the bill, indirectly,
for political mass mailings. ,
" As a' Christmas token to his
colleagues, in other words, nays
offered them_ new
waYs to skin the. taxpayers.
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