Posts tagged Laos

Laos closes Casino in Golden Boten City

Last May, following stories about Chinese gamblers held hostage at Golden Boten City, the PRC withdrew its support for the Chinese-run Casino exclave in northern Laos. Yesterday, the Lao government has definitely pulled the plug. France24 reports:

Laos is ending gambling in the former casino enclave of Boten on the Chinese border because of worries about crime, state media said Wednesday.
“There has been speculation over criminal activity in the gambling town, which forced the government to close the casino,” the Vientiane Times reported, without saying when the business was shut.

Donald Frazier (Forbes) was quick to note that the planned $3.8 billion casino complex in Cambodia will be more than happy to accommodate the homeless gamblers. Interestingly, however, the other Chinese-run Casino exclave in Laos, the Golden Triangle Special Economic Zone on the Mekong, seems not to be affected by the closure of Golden Boten, according to Bikya Masr. The decision to close Golden Boten appears to have been taken after careful consideration. Bangkok Post cites the Vientiane Times:

The Laos government decided to act when the project’s developer began looking into selling the venture to another Chinese investor, the Vientiane Times said.
The new investors will not operate a casino in the area, the report said, but will instead develop the area into “a tourism destination,” it said.

The most interesting question is, of course, who is the new investor?

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Andrew Marshall on the the Mekong incidents

In October 2011, a Chinese cargo vessel was attacked on the Mekong. Thirteen sailors died. Initial reports blamed Naw Kham, the legendary pirate and drug lord. Later it seemed that a unit of Thai special forces was arrested for their alleged involvement. A special report by Andrew Marshall (Reuters) now reveals that nothing is clear yet. The Thai soldiers have not been charged with any crime (they are still on duty) and USD 6 million worth in Methamphetamine pills was found on board the ship.

If you are interested in the story of a modern day freshwater pirate, the business in meth as opposed to opium, the Shan rebels, and the role of a Chinese casino and Special Economic Zone, read this fascinating piece.

Here is a teaser:

Opium and heroin are no longer the Golden Triangle’s only products. Since the late 1990s, secret factories in Shan State have churned out vast quantities of methamphetamine. This highly addictive drug is known across Asia in pill form by the Thai name yaba (“crazy medicine”) and in its purer crystalline form as ice or shabu.
It is now the top drug in Japan, South Korea, the Philippines, Thailand, Cambodia, Laos and Brunei, the United Nations Office of Drugs and Crime reported in 2011. Naw Kham’s rise coincided with this explosion of meth use, which transformed the ill-policed Mekong between Myanmar and Laos — Naw Kham’s patch — into one of Southeast Asia’s busiest drug conduits.
Every year hundreds of millions of Myanmar-made methamphetamine pills are spirited across the river into Laos or down into Thailand. The trade is worth hundreds of millions of dollars — enough to corrupt poorly paid law enforcement officials across the region.
Narcotics are not the Mekong’s only contraband.
Other lucrative goods include: endangered wildlife such as tigers and pangolins; weapons, stolen vehicles and illegal timber; and, in the run-up to this month’s Tet celebrations, thousands of dogs in filthy cages bound for restaurants in Vietnam.
There is human contraband too. Illegal migrants from Myanmar and Laos are bound for Thailand’s booming construction or sex industries, while a constant stream of North Koreans journey across southern China and through Laos to surrender to the Thai authorities, who obligingly deport them to South Korea.

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Poppy Production in Golden Triangle

Souksakhone Vaenkeo for The Economic Observer:

According to a new report from the United Nations Office on Drug and Crime (UNODC), opium cultivation in Myanmar and Laos has increased, with high prices offering farmers a better incentive to plant the illicit crop.

According to the report, despite the efforts of national governments to reduce the planting of opium, the area of opium plantations in Laos increased by 37 percent in 2011, up to 4,100 hectares from last year’s 3,000 hectares.

Interesting development against the background of all the Chinese efforts and investments to turn these opium farmers into producers of rubber (see, for example, the work of Antonella Diana here and here)

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China’s Security Chief Goes on Tour

Hannah Beech reports in TIME on 23 Aug 2011:

Over the past week, as I’ve traveled across Asia, I’ve discovered an unlikely partner in my continental peregrinations: China’s security chief Zhou Yongkang. The senior Chinese envoy’s travels have taken him to Nepal, Laos, Cambodia and Tajikistan. The final stop is Mongolia, where Zhou is expected to head on Tuesday.

Indeed, during the past weeks, there has been so much good news on the strengthening of ties between China and its neighbours. See these: “Senior Chinese official proposes enhanced China-Laos ties“; “Border towns witness China-Mongolia trade boom“; “Mongolian PM sees ‘golden era’ for Mongolia-China ties“; “Senior CPC official meets Cambodian PM, hails longstanding friendship“; “China Tajikistan pledge to deepen pragmatic cooperation“. And Zhou Yongkang (left below, a member of the Standing committee of the Political Bureau of the CPC Central Committee, as well as a secretary of the Commission for Political and Legal Affairs of the CPC Central Committee) was the man to lead the show.

 

Zhou meets Mongolian PM Sukhbaatar Batbold in Ulan Bator, 24 Aug 2011 (Xinhua/Liu Weibing)

Beech’s report continues:
In Zhou’s wake, the narrative has tended to follow the same plot-line: first, China’s state media proclaims “mutually beneficial cooperation” and “longstanding friendship” between Beijing and the local government. Then a raft of trade deals or bequeathing of military goodies is announced. Finally, an undercurrent of unease follows, with regional analysts wondering about China’s growing economic and security might.
Last Saturday, Zhou was in Cambodia, where he met with Prime Minister Hun Sen. In addition to various mining, road-construction and farming deals, China has agreed to supply nearly $200 million in helicopters to Cambodia. Beijing is already the Southeast Asian nation’s largest foreign investor, and Hun Sen, who has quietly evolved into one of Asia’s longest-serving strongmen, has been vociferous in his support of China. His enthusiasm for Chinese largesse stands in marked contrast to his feelings toward Western donors who tend to attach pesky strings like human-rights commitments to their aid. The Phnom Penh Postquoted a local researcher worrying that “Cambodia will become subservient to China.”
Before that in Nepal, Zhou oversaw the signing of more than $50 million in trade and aid. Sandwiched between India and China, Nepal has turned into a kind of proxy ground tussled over by the two Asian giants. The Chinese delegation arrived just days after Nepal’s Prime Minister had resigned. Political dysfunction, though, didn’t stop the caretaker government from trying to profit from what China’s 60-person delegation had to offer. During the Chinese security czar’s stay, members of Nepal’s Tibetan refugee community were warned against expressing any sentiment that might be considered “anti-China.” (Zhou’s previous political duties have included serving on a Beijing committee that deals with Tibet; he helped oversee a crackdown on Tibetan activity in the southwestern Chinese province of Sichuan.)
Zhou’s travels produced some consternation in India, which shares a long border with China and has skirmished with its northern neighbor over the contested boundary. On August 22, the Times of India reported that the Indian Army was considering the creation of a Mountain Strike Corps to counter a Chinese military build-up in Tibet, which borders India. Ultra-light howitzers and light tanks would possibly be stationed along parts of the 4,057-km Line of Actual Control, according to the Times. Despite such tough talk, however, it’s unclear whether India is really willing to commit financial resources to a military expansion.
Luckily for China, the official reaction to Zhou’s visit was far rosier in communist Laos. According to China’s state-run news agency, Xinhua, Laos’ President Choummaly Sayasone announced last week that “China has become a significant force in the international community and is playing a key role in promoting regional and global peaceful development, which reveals the vitality of socialism and greatly encourages the Lao people.” Socialist brotherhood doesn’t get any better than that.
Hmmm it makes me wonder: Why now? Why is Zhou acting like the Santa Clause touring around signing multimillion deals now? And why only Nepal, Laos, Cambodia, Tajikistan and Mongolia? (and not, say, Vietnam, is this meant to make Vietnam feel painful??)
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Ron Gluckman on the remains of Golden Boten City

Ron Gluckman for Forbes Asia Magazine searches for traces in Golden Boten City, the once booming Chinese special zone in northern Laos. Since Chinese authorities took action against the excesses in Boten back in May, the casino and brothel boomtown has turned into a ghost city:

Today new casinos, hotels and multistory gem warehouses with exterior detailing of Greek goddesses all stand completed, but most are vacant. Some 10,000 people a day used to mob Boten. “It was so crowded, you could barely move,” says a Golden City official. Now a few dozen visit each day. “We are shut down until we find new financing,” the official says on a tour of sites for a potential golf course and luxury housing. “We’re waiting for investment to come.” Says Huang Minxuan to FORBES ASIA: “Please be patient. When we finalize our modifications and come up with a new development plan around September or October, we will invite you to come over for an interview.”

Reportedly, a Singapore firm by the name of FBI365 has been hired to help “rebranding” the special zone.

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