Golden Triangle

The Golden Triangle’s rugged terrain and destabilized governance made it ideal for poppy cultivation and opium trafficking, controlled by ethnic militias, warlords, and remnants of the Chinese Nationalist Kuomintang (KMT). After the 1949 Mao's victory in China, KMT forces under General Li Mi fled to Burma’s Shan State, establishing a base for “anti-communist” operations. The region’s opium trade became a financial lifeline for these groups, intersecting with U.S. efforts to contain 'communism' in Asia, particularly during the Korean War (1950–1953) and the Vietnam War (1955–1975).

CIA Involvement

The CIA’s activities in the Golden Triangle centered on supporting anti-communist forces, with opium trafficking proceeds often tolerated or indirectly facilitated as a byproduct. Key aspects include:

Support for KMT Remnants in Burma (1950s–1960s):

After retreating to Burma, KMT forces, backed by the CIA and Taiwan’s Chiang Kai-shek, aimed to destabilize China through guerrilla incursions. The CIA provided arms, training, and logistics under Operation Paper, launched in 1951, to support the KMT’s “Third Force” in Yunnan Province.

The KMT controlled large opium fields in Shan State, using drug profits to fund operations. The CIA was aware of this, as declassified documents and reports (e.g., by historian Alfred McCoy) confirm, prioritized anti-communist goals of reinstalling Chiang in China over drug suppression which they used to covertly fund their efforts, setting the precedent to institute this practice worldwide. KMT opium was processed into heroin in Thailand and trafficked globally, with tacit U.S. approval.

By the early 1960s, international pressure from Burma and China forced most KMT forces to relocate to Thailand and Taiwan, where they continued opium trafficking under CIA-backed Thai General Phao Siyanon’s patronage. The CIA’s complicity was evident in its use of KMT-controlled airstrips for supply drops.

Laos and the Secret War (1960s–1970s):

In Laos, the CIA orchestrated the “Secret War” (1961–1975) to counter the Pathet Lao and North Vietnamese forces along the Ho Chi Minh Trail. The CIA trained and armed Hmong militias under General Vang Pao, who controlled opium-producing regions in northeastern Laos.

Hmong and other ethnic groups used opium as currency, with CIA-operated Air America helicopters transporting raw opium from Hmong villages to processing labs in Vientiane or Thailand, as documented by McCoy and whistleblowers like Air America pilot Michael Levine. The CIA denied direct trafficking but acknowledged “incidental” involvement due to reliance on drug-running allies.

Vang Pao’s forces, funded partly by opium and the CIA, grew into a 30,000-strong army by the late 1960s. The CIA’s tolerance of drug profits ensured Hmong loyalty, but heroin from these operations flooded U.S. markets, contributing to the 1970s drug epidemic focused primarily in minority inter-cities.

Thailand and Anti-Communist Alliances:

Thailand, a key U.S. ally, hosted CIA bases and served as a hub for Golden Triangle heroin processing. The CIA worked with Thai police and military leaders, like Phao Siyanon, who controlled the opium trade and used profits to fund anti-communist operations.

The CIA supported Thai counterinsurgency programs, such as the Border Patrol Police, which collaborated with KMT and Shan drug lords. Declassified cables show the CIA knew of these connections but viewed them as secondary to containing 'communism'. The CIA would eventually funnel approximately $35M to the Thai national police securing access to both air and sea ports for these operations.

Drug Trafficking and Deniability:

The CIA’s involvement in the drug trade was largely indirect, relying on intermediaries like the KMT, Hmong, and Thai officials. Agency aircraft, CIA supported/created front companies (e.g., Air America), and banking networks facilitated logistics, but the CIA maintained plausible deniability by avoiding direct handling of drugs.

Declassified documents, such as the 1972 CIA Inspector General’s report, admit awareness of allies’ drug activities but claim no policy sanctioned trafficking. However, critics argue the CIA’s failure to curb allies’ opium trade effectively enabled the global heroin surge, with Golden Triangle heroin accounting for an estimated 30% of U.S. supply by 1970.

World Anti-Communist League

The World Anti-Communist League (WACL), co-founded by Chiang Kai-shek in 1966, overlapped with CIA activities in the Golden Triangle. KMT remnants in the region, supported by Taiwan and the CIA, were linked to the WACL’s Asian chapter (APACL). The WACL’s broader network, including figures like John Singlaub, later supported drug-linked 'anti-communist' terror groups like the Nicaraguan Contras, suggesting a pattern of tolerating illicit funding. While no direct evidence ties the WACL as an organization to opium trafficking, its alignment with CIA-backed KMT forces implicates it in the broader ecosystem.