Drug Production and Trafficking by Armed Insurgents

Shan insurgents purchased arms form the KMT and engaged in opium trade in this way

       ln -1959-60 the Shan insurgents arose and formed an unholy alliance with the KMT for the purpose of raising funds for their existence through drug trafficking. Some of the Self-Defense Forces formed to combat them also succumbed to the lure of drug profits and began to traffic in drugs. In 1973 when the Government decided to end these forces some of them refused to turn in their arms and instead became drug traffickers.
       The Burma Communist Party (BCP) moved into the Kokang and Wa areas in 1968, and to gain funds and allies the began to traffic drugs and even to later produce heroin directly. Thus the volume of drugs production in that area increased eve further.