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Harmony of Nations

Annan Tries to Sack Butler

UN, US Spy on Saddam

AN extraordinary conflict has erupted within the highest echelons of the
United Nations as Kofi Annan, the Secretary-General, attempted to
discredit and oust Richard Butler, the combative Australian who heads
the UN weapons inspection mission to Iraq.
The power struggle in New York has been brought into the open by
disclosure that the United States used Mr Butler's teams to spy on
Saddam Hussein. Although the Unscom chief denied the claims, American
officials have since confirmed them.

In the most embarrassing development, Scott Ritter, the former arms
inspector, details in the accompanying article how Mr Butler colluded
with the US hijack of the UN eavesdropping operation in Iraq. The
disclosures could mark the downfall of Mr Butler.

Mr Ritter predicts that the American actions will "kill" Unscom, the
special commission set up after the Gulf war to track down Saddam's
arsenal of nuclear, chemical and biological weapons.

Few analysts believe that the inspectors who evacuated their Baghdad
base just hours before December's bombing raids will be allowed to
return to Iraq unless Unscom undergoes a major overhaul and change of
leadership. But that would pander to the demands of Baghdad and is
opposed by Washington and London.

Mr Annan's campaign against Mr Butler will fuel criticisms in London and
Washington that he is keen to appease Baghdad after the failed accord he
drew up with Saddam last February. The political ructions at the UN
headquarters are certainly playing into the hands of Saddam, who has
stepped up his campaign to expose rifts within Western and Arab circles
since last month's bombing raids.

The UN split reflects long-standing antagonism between Mr Annan's camp,
which is intent on avoiding confrontation with Baghdad, and the hardline
anti-Iraq lobby that is led by Washington and London. They back Mr
Butler, who has highlighted Saddam's efforts to thwart his inspectors'
work. Mr Annan took the unusual step of telephoning Madeline Albright,
the US Secretary of State, last week to deny that he had expressed
scepticism about Unscom's work or Mr Butler's credibility. But the call
came only after some of his officials had given the opposite message.

The secretary-general's spokesman Fred Eckhard sought, unconvincingly,
to portray the confusion as a consequence of Mr Annan's accessibility to
journalists. And significantly, Mr Eckhard failed to deliver the
once-automatic declaration of support for Mr Butler.

Officials close to Mr Annan were behind the series of authoritative
leaks to American newspapers last week disclosing that US intelligence
agents had used the UN arms inspection mission to penetrate Iraq's
intelligence network and track Saddam's movements and security
arrangements.

Mr Butler denied the claims, only to be contradicted by American
confirmation that they were true. At this stage, he demanded to know
whether his mission had been unwittingly used to spy on the Iraqis.

However, the most damaging blow is likely to have been delivered by Mr
Ritter, who says that Mr Butler co-operated with the US surveillance. Mr
Ritter also discloses that several military sites bombed during
Operation Desert Fox last month were pinpointed by American intelligence
from the information they had garnered from Unscom's work.

His disclosures effectively confirm long-held Iraqi claims that the UN
arms inspections were used as a cover for American espionage. But he
says it is the US, not Iraq, that "killed" Unscom's mission to track
down Saddam's weapons by seizing control of its eavesdropping
activities.

Despite continued public support for him from Washington and London, Mr
Butler may not survive. Russia and China have called for his dismissal
while the French have made the same demands behind the scenes.

If he goes, the celebrations will be in Baghdad but his fall will have
been manufactured in New York where Mr Annan is desperate to revive the
UN's role as a world peace-making body. Privately, Mr Annan is
understood to be furious that Washington and London bombed Iraq last
month without the backing of the other three permanent members of the
Security Council: France, Russia and China.

The future of Unscom is also clouded in uncertainty. Neil Partrick, the
head of the Middle East programme at London's Royal United Services
Institute, said America and London are planning for a "containment-plus"
policy without Unscom.

He said: "The target of containment will rely on military strikes to
keep Saddam under control and prevent him extending his military
operations or weapons of mass destruction. The 'plus' element is the
policy of backing Iraqi opposition groups that want to overthrow
Saddam."

The London Telegraph, Jan. 9, 1999


Money Laundering

Triads Battle for Control of Macao

Portuguese Go Home

A GANG war is raging in Macao as triads battle for control of lucrative
gambling and prostitution rackets before the enclave is handed back to
China in December.
The last year of Portuguese rule in the tiny territory has started
bloodily. Five separate shooting incidents last week left one triad
member dead, a prison warder fighting for life and five other people
wounded. Car bombings and drive-by shootings by hired hitmen have been a
fact of life in Macao for more than three years, but the number of
incidents has grown in recent months as fighting between two large gangs
- the 14K and Big Circle - has become increasingly bitter in the run-up
to the handover.

The enclave is renowned for its gaming industry and attracts hordes of
gamblers from nearby Hong Kong. Macao's 13 licensed casinos are
nominally controlled by a private company, Sociedade de Turismo e
Diversoes de Macau (STDM). But triads earn big commissions and agent
fees by organising groups of "high rollers", who bet huge sums in the
private rooms of STDM hotels. There are also good profits to be earned
from pimping for the thousands of local prostitutes.

The departing Portuguese administrators have found themselves unable to
exert the power needed to rein in the gangsters, who have little respect
for them in the dying months of colonial rule. The triads have been able
to cripple law enforcement through bribery and intimidation of police
and prison officers.

Those who refuse to be bought by the triads have become targets for
hitmen, who can be hired in China for as little as �3,500. In one attack
last month, a gunman shot dead a 26-year-old Portuguese warder at
Macao's Coloane Prison, as he sat in a cafe. He was one of nine
"incorruptibles" sent from Portugal two months earlier to watch over Wan
Kwok-koi, the head of the 14K triad gang and the man believed to be
behind the escalation into open warfare between 14K and the Big Circle
gang. Even the capture of Wan in a raid on the Lisboa Hotel has turned
sour on the authorities. Conditions in Macao's only prison have since
degenerated into chaos with regular riots between prisoners and the
warders.

At the spot in Beijing's Tiananmen Square where a clock once ticked away
the seconds to Hong Kong's return from British rule in 1997, a similar
instrument is now digitally marking time until the last outpost of
"foreign domination" is brought back to "the Motherland".

There are few in Macao who dread the prospect of Chinese rule. After the
deterioration in public order and a long recession, only a minority of
Macao's beleaguered population regrets the demise of 442 years of
Portuguese rule. "Macao has a lot of problems," said Antonio Ng
Kuok-cheong, the sole pro-democracy member of the local legislature.
"Triad crime is very serious, there are huge economic problems, and
taxes from gambling are falling. In terms of governability, I don't
think the situation can be worse."

Macao's gambling industry, which generates more than half the
government's revenue, has been hit hard by the east Asian economic
turmoil. This year is expected to be the third of the recession, with
the economy forecast to shrink by four per cent and unemployment to rise
above five per cent.

Despite the gravity of the economic problems, the new administration -
likely to be led by a local banker, Edmund Ho - will be judged on its
ability to fight crime, say local analysts. Beijing has grown
increasingly vocal about the threat to Macao posed by violent crime. The
senior Chinese official handling preparations for the handover publicly
warned Portuguese officials last week that the immediate restoration of
order was "the only way of carrying out a smooth transition and peaceful
transfer of administration".

President Jiang Zemin of China recently added his voice to the criticism
of Macao's degeneration into lawlessness and indicated that his
government was ready to intervene, saying: "We will never sit idle when
these evil forces run rampant."

The official Chinese press reported last month that the execution of a
Hong Kong gangster, Cheung Tze-keung, was a warning to his counterparts
in Macao that Beijing would not tolerate open defiance by the
underworld. And, as a signal that it intends to play a more active role
in policing Macao than it has in Hong Kong, China has already sent in
anti-terrorist police from nearby Guangdong province. It has also
announced that it will station People's Liberation Army troops in Macao
in December.

With less than a year to the handover, the Portuguese are leaving in
droves. It has been made clear to Portuguese officials that they will
not be welcome to join the new government. Many are returning to their
old jobs in Portugal."They believe that when the Chinese have the upper
hand, they will not be easy to work with," said Fr Francisco Fernandes,
the sole remaining Portuguese parish priest in Macao. "They will
remember everything bad that has taken place in the past." Fr Fernandes
says the exodus is already well under way. In the past year, the size of
his scout troop has halved to 100. Many other people plan to move back
to Portugal before December.

While Fr Fernandes and some of the visitors who enjoy the cuisine may
miss the departing Portuguese, many of the locals will not mourn their
absence. "The Portuguese never made any attempt to build a support base
in the local population," a Macao newspaper editor said. "Consequently,
whenever they look for support, the local Chinese always oppose them."

The London Telegraph, Jan. 9, 1999
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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