The Politics of Heroin in Southeast Asia

The Decline of the European Heroin Trade, and a Journey to the East

During the 1960s local arrests, internal warfare, and international law enforcement activity progressively weakened the Turkey-Italy-Marseille narcotics axis. By the end of the decade, the situation had become so serious that the international narcotics leaders were forced to conduct a major reorganization of the traffic.

In Sicily a costly eight-year battle (1956-1963) between Mafia factions-the "old" Mafia and the "new" Mafia-had reduced the "honored society" to its weakest state since the end of World War 11. The "old" Mafia was made up of traditional rural gangsters, the illiterate tyrants who ruled by fear and exploited the impoverished peasants. In contrast, the "new" Mafia was attracted by the modern business methods and the international heroin smuggling that Lucky Luciano and his American deportee cohorts had introduced in the late 1940s. In the first three years of this war eighteen major mafiosi and countless minor gunmen were eliminated.

Weakened by the enormous cost in leadership, the feud subsided, but it broke out again in 1963 when part of a heroin shipment was stolen by a courier enroute to the United States. It was a singularly inopportune moment for headline murders, as the Mafia itself was well aware, for a parliamentary investigating commission was finally looking into the Mafia. Even though the honored society's Grand Council ordered a moratorium for the duration of the inquiry, passions could not be restrained, and the murders began again. The fast Alfa Romeo sedans favored by mafiosi were being blown up in Palermo with such frequency that the mere sight of one parked was enough for the police to clear the street.

The Parliamentary Commission of Inquiry into the Activities of the Mafia began in the midst of the explosions, and its reports contained the first serious legislative suggestions for combating the venerable society. (84) In 1964, 800 mafiosi were arrested in a major sweep and locked up in Palermo Prison. The good work continued: in 1968, 113 more were arrested (though many were subsequently released) and, in May 1971, 33 of the top leadership were exiled to Filicudi and Linosa islands. (85) Although the impact should not be overestimated, these arrests, together with several major heroin indictments, have made Sicily a much less desirable place for American mafiosi to do business. And since Sicily and southern Italy were still important transshipment points for Middle Eastern morphine and Marseille heroin in the sixties, this weakened the overall strength of the Turkey-ltaly-Marseille axis.

Equally important in reducing the importance of Sicily and Italy in the international drug trade was the sudden death of Lucky Luciano. It was a timely death, since the Federal Bureau of Narcotics had just arrested, in Spain, three of his heroin couriers, who were fleeing a narcotics indictment in New York. American narcotics agents submitted evidence that Luciano had provided liberal travel expenses for their hopscotch flight across the Caribbean, and the courts began to consider an indictment against him. The leftist Italian press screamed for his arrest, and parliamentary deputies denounced the government's laxity.

While drinking a cup of coffee at Naples airport on the evening of January 22, 1962, Luciano suffered a fatal coronary attack. (86) The death of the man who had organized the postwar heroin trade, kept it running against considerable adversity, and was thought to be personally responsible for shipping more than $150 million worth of heroin into the United States over a sixteen-year period (87) was an irreplaceable loss. Without Luciano's organizational genius, it became increasingly difficult for Mediterranean smugglers to survive against the growing pressure of international law enforcement efforts.

The most important blow to the Mediterranean heroin complex, however, came in 1967, when the Turkish government announced plans to reduce, and eventually abolish, opium production. The U.S. government contributed $3 million to build up a special 750-man police narcotics unit, finance research for substitute crops, and improve the managerial efficiency of the government regulatory agency, the Turkish Marketing Organization. (88) Since Turkey's poppy fields were the major source of raw materials for Marseille's heroin laboratories, the impact of the Turkish government's declaration was obvious. According to analysts at the U.S. Bureau of Narcotics, the Corsican syndicates "saw the handwriting on the wall" and quickly realized that they would have to find an alternate source of opium if their lucrative drug racket were to survive. (89) (By early 1972 Turkey had reduced its opium-growing provinces from twentyone to four. And in those areas where poppy production has been prohibited, "U.S. agents have reported little evidence of illicit production, . . . and such crops, when found, have been immediately destroyed." (90) Finally, in mid 1971 the Turkish government announced that it would eradicate all opium production by the end of 1972. (91) (See Map I on page 10.)

Thus, the international heroin trade was at a crossroads in the mid1960s. If it were to continue, a major effort would be required to reorganize the traffic. This could hardly be done by letter or telephone, but would necessitate the personal intervention of a high-ranking underworld figure. As in any other business enterprise, the leaders of organized crime have almost nothing to do with daily operations, but are the only ones who can initiate major corporate changes or new enterprises. But while ordinary businessmen transact much of their basic negotiations by telephone, correspondence, and intermediaries, police surveillance and telephone taps make this impractical for the tycoons of organized crime. Moreover, mafiosi do not sign binding contracts with other gangsters and can hardly take a partner to court if he welshes on a deal. Therefore, it is one of the basic characteristics of organized crime that all important deals require a meeting of the bosses involved so that they can exchange their personal "word of honor." This need for face-to-face discussions also explains why Mafia leaders have repeatedly exposed themselves to conspiracy indictments and banner headlines by arranging large underworld conferences, such as the. ill-fated 1957 Apalachin meeting.

After Luciano's death in 1962, the logical successors to his leadership in the narcotics trade were his two subordinates, Meyer Lansky and Vito Genovese. However, in 1958 Genovese had been indicted for heroin trafficking by a New York court and was later sentenced to fifteen years imprisonment. Although he continued to direct many of his enterprises from Atlanta Federal Penitentiary, where he was treated with great respect by prisoners and guards alike, he was in no position to conduct the reorganization of the narcotics trade. (92) Lansky at sixty-six was now too old and too carefully watched to repeat his 1949 business trip. And by November 1970, when he retired to Israel, he had already turned over much of the major decision making to his subordinates. (93) Thus, by death and default, the responsibility logically fell to Santo Trafficante, Jr.

At age fifty-seven, Trafficante is one of the most effective organized crime leaders still operating in the United States. Avoiding the ostentatious life style of Cadillacs and diamonds that is so attractive to many mafiosi, Trafficante cultivates the austerity of the old Sicilian Dons. But unlike the old Sicilians he manages the organization with reason rather than force, and is one of the few major Mafia leaders whose "family" has not been torn apart by internal power struggles or vendettas with other families.(94) Despite his high prestige within the organization, Trafficante's good sense has prevented him from campaigning for a leading position on the Mafia's National Commission. This self-effacing attitude no doubt accounts for his personal safety and considerable influence. Through his studious avoidance of publicity, he is one of the least-known and most underestimated leaders of organized crime.

Trafficante himself is reportedly involved in the narcotics traffic only at the level of financing and crisis management; he never sees, much less handles, any heroin. His organization is so airtight, and he is so discreet, that federal narcotics agents consider him virtually untouchable. (95)

Trafficante's territory has been Florida and the Caribbean, where he served as one of Meyer Lansky's chief retainers. During the late 1940s and 1950s Trafficante was heavily involved in Luciano's and Lansky's heroin smuggling operations, and after his father's death in 1954, he succeeded him as Mafia boss of Florida and fell heir to his relationship with Lansky. Trafficante has always done his best to look after Lansky's interests. When Anastasia, the head of Murder, Inc., tried to open a competing casino in Meyer Lansky's Havana in 1957, Trafficante arranged a friendly meeting with him in New York. An hour after Trafficante checked out of the Park-Sheraton Hotel, three gunmen murdered Anastasia in the hotel barbershop. (96)

The Cuban revolution in 1959 forced Trafficante to write off his valuable Havana casino operations as a total loss, but this was partially compensated for by the subequent flood of Cuban refugees to Miami.

His association with leading Cuban gangsters and corrupt politicians when he was living in Havana enabled him to expand his control over the Florida bolita lottery, a Cuban numbers game, which became enormously lucrative when the refugees started pouring into Florida in 1960. (97) By recruiting Cubans into Trafficante's organization to expand the bolita lottery, organized crime may have acquired a new group of narcotics couriers and distributors who were unknown to American police or Interpol. With Latin couriers, new routes could be opened up, bringing European heroin into Miami through Latin America.

The Mafia's transfer of narcotics importation and distribution to its new Cuban associates has caused some confusion in the press; many analysts have misinterpreted the appearance of Cuban and South American couriers and distributors to mean that organized crime has given up the heroin trade. The Justice Department's "Operation Eagle" revealed something of this new organization when, in June 1970, 350 federal narcotics agents made 139 arrests "in the largest federal law enforcement operation ever conducted against a single narcotics distribution ring." Although the arrests were carried out in ten cities, the Bureau of Narcotics stated that all five of the ringleaders were Spanish-speaking and three were Cubans residing in Miami. (98) In addition, federal authorities report that bulk heroin seizures in the Miami area have increased 100 percent during 1971, indicating that the beachfront city has remained a major distribution hub. (99)

While the recruitment of Cuban gangsters may have solved the problems with couriers and distributors, the Mafia still had to find an alternative source of morphine base and, if possible, a reserve source of heroin to protect itself in case of problems in Marseille and Europe. There were a number of alternatives, among which Southeast Asia was the most promising. While Mexico had been refining small amounts of low-grade, brownish-colored heroin for a number of years, she had never been able to produce the fine white powder demanded by American addicts. Though India and Afghanistan had some lively local opium smuggling, they had no connections with the international criminal syndicates. But Southeast Asia was busily growing more than 70 percent of the world's illicit opium, and the Chinese laboratories in Hong Kong were producing some of the finest heroin in the world. Moreover, entrenched Corsican syndicates based in Vietnam and Laos had been regularly supplying the international markets, including Marseille and Hong Kong, with opium and morphine base for almost a decade. Obviously this was an area ripe for expansion.

In 1947, when Lucky Luciano wanted to use Havana as a narcotics transfer point, he went there personally. And just before Marseille embarked on large-scale heroin production for the American market in 1951-1952, Meyer Lansky went to Europe and met with Corsican leaders in Paris and on the Riviera.

So, in 1968, in the time-honored tradition of the Mafia, Santo Trafficante, Jr., went to Saigon, Hong Kong, and Singapore. (100)