-Caveat Lector- an excerpt from: Scarlet and the Beast - A History of the War Between English and French Freemasonry,Vol 3 John Daniel (C)1994 John Kregel, Inc. P. O. box 131480 Tyler, Texas 75713 ISBN 0-9635079-0-7 ----- can be purchased from: Global insights 675 Fairview Dr. #246 Carson City, NV 89701 702-885-0700 800-729-4131(orders only) --[8]-- 2 MODERN MYSTERY BABYLON AND DRUGS The Chinese Opium Wars: A Blueprint for America As long as this country maintains its drug traffic, there is not the slightest possibility that it will ever become a military threat, since the habit saps the vitality of the nation.(1) So spoke a leading drug trafficker in a letter to his superiors. Although the trafficker could well have been describing America, he is not referring to the United States, but to China in 1838, on the eve of the first Opium War when Great Britain landed troops to compel Chinese to ingest the poison distributed by British merchants. Four years later in 1842, Great Britain's army of ten thousand soldiers had won a victory over 350 million Chinese.(2) London's military success against the Chinese was not due to superior military advantage, but to its strategy between 1830-1839 of decimating the Chinese army through drug addiction. This famous cartoon, reproduced here, dates back to the 1839 Opium War, and shows a British military man shoving opium down the throat of a Chinaman.(3) British Merchants of the Earth The vehicle by which London shipped her drugs to China and elsewhere around the world was founded in 1600. Capriciously called "Dope, Inc.," the British East India Company (BEIC) was incorporated by royal charter on December 31, 1600, under the name "Governor and Company of Merchants of London trading with the East Indies." Begun as a monopolistic trading body, the BEIC became involved in politics and acted as an agent of British imperialism in India starting in the mid-eighteenth century (4) >From its earliest years, the British East India Company was involved in Masonic revolutions, specifically Oliver Cromwell's Rosicrucian-Masonic insurrection against the Stuart monarchy.(5) At first Cromwell dissolved all crown-protected monopolies, but finding his protectorate short of capital, he granted the BEIC a new charter in October of 1657 in return for financial aid.(6) The BEIC was not just another monopoly, but a Masonic monopoly. According to Dr. John Coleman, a former British intelligence officer. "to operate a trading company within the BEIC, the merchant must first be a Freemason or an initiate in one of its adjunct orders; and second, he must be given permission to join by the BEIC stockholders. "(7 )Initially the BEIC received tea, spices, and silks from the Orient in return for fabrics manufactured from cotton grown on the southern plantations in the newly colonized Americas. As the ships sailed on their return from the Orient, they dropped anchor off the coast of Africa to board captured blacks who they would sell as slaves to work the cotton fields on the east coast of America. The use of slave labor enabled BEIC stockholders to maintain low overhead in their cotton production. Merchant families and plantation owners rapidly accumulated great wealth. Prior to the American Civil War, the same British trading companies behind the slave trade in the South were running large numbers of Chinese indentured servants to the West Coast. This was called the "coolie trade" or "pig trade" by its British Hong Kong and Shanghai sponsors.(8) The term "Shanghaied" has its origin in kidnapping drug-addicted Chinese, who were boarded on BEIC ships at the port of Shanghai, and then shipped to the west coast of the United States of America to be sold as indentured servants. These Chinese were the first buyers in the BEIC drug market in the western hemisphere, and as addicts they simultaneously served as the initial means for trafficking in America. The only competition the BEIC faced was from other nations such as France and the Netherlands, which also formed East India companies. The Dutch were unable to compete with the British and eventually gave England their trade rights to India. This gave the BEIC exclusive control of the entire opium trade in India, whose farmers produced the largest drug crop in the world. Through a strong advertising program, the BEIC encouraged the sale of tea while rapidly and energetically expanding its spice trade Expanding revenues from tea made it possible for the English to colonize India, the garden spot of the world for poppy. Poppy juice, called opium, was extracted from the poppy and transported to China by the BEIC. It was this drug that helped bring on the Opium Wars in the mid-1800s, which further benefited British colonialism.(9) America was involved in the opium trade through Freemason John Jacob Astor, founder of the New York Astor family dynasty during the Revolutionary era. Astor was granted the privilege of becoming a BEIC stockholder and was one of the pioneers of the opium trade in China. However, opium was not a regular article of import into China by Americans until about 1816, four years after England made her first attempt to recapture America in the War of 1812.(10) In addition to the Astor group in New York City, the British East India Company developed similar networks in Philadelphia and Boston. Today these wealthy family networks have developed into what is called the "Eastern Establishment," which is headquartered in the Northern Jurisdiction of Scottish Rite Freemasonry at Boston, which stayed loyal to the British Crown following the American Revolution and the War of 1812.(11) A direct descendant of John Jacob Astor was American citizen Waldorf Astor, of Waldorf Astoria Hotel fame. Waldorf Astor, a high-degree Mason in the Northern Jurisdiction of Scottish Rite Freemasonry, was, after World War n, made chairman of the Royal Institute of International Affairs (RIIA), which oversees the worldwide distribution of drugs for English Freemasonry.(12) The counterpart of the RHA in America is the Council on Foreign Relations (CFR), founded on July 29,1921. In 1973 the CFR created the Trilateral Commission (TC) to establish tighter control over America's industries and financial institutions. (These organizations are the political arm of English Freemasonry in America, and will be discussed in more detail in the next chapter.) Another American family which made its fortune in Chinese opium was the Freemasonic Delano family of the American Civil War era. Warren Delano, head of a China trading company in the mid-1800s, was the biggest U.S. dealer in opium. In a 1986 story on the history of drugs in America, the U.S. News & World Report said that "Delano equated the opium trade with the liquor business—both profitable and both the cornerstones of great family fortunes."(13) Moreover, "Eleanor Roosevelt admitted in 1953 that the Delanos, 'like everybody else, had to include a limited amount of opium in their cargoes."(14) Warren Delano's grandson was 32nd degree Freemason Franklin Delano Roosevelt, the three-term President who stacked the Supreme Court with a majority of Freemasons.(15) Other American families involved in the opium trade were the Sutherlands, Mathesons, Barigs, and Lehmans. The Sutherland family, one of the largest cotton and opium traders in the South, were first cousins to the Matheson family of Jardine Matheson, now one of the largest Hong Kong banking families financing the growing and distribution of the drugs in the Orient. The Barings founded the Peninsular and Orient Steam Navigation Company that transported opium from the Orient. The Freemasonic Rothschild family, as well as their New York banking cousins, the Lehmans of Lehman Brothers, all made their initial entry into the United States through the pre-Civil War cotton, drug, and slave traded English Freemasonry's Bid for Global Control of Narcotics As we learned in volume one of Scarlet and the Beast, whether the English or the French have controlled the politics of any nation during the last two hundred years has been determined by which of the two opposing Masonic powers has had the most lodges in any given nation. The American Revolution, for example, was successful against the British because there were more French Masonic lodges in America than English. It was from French Masonic lodges that the American Revolution was plotted.(17) While the French were chartering greater numbers of lodges throughout the continent of Europe and the New World, London was concentrating on the Orient. Wherever the BEIC traveled, its merchant shippers, doubling as the British Army and Navy, left behind a wake of English-chartered Masonic Lodges in the Far East. Mackey's Encyclopedia of Freemasonry confirms that "it will thus be seen that the planting of the Craft in India [was] by English merchants, soldiers, and sailors first...."(18) Mackey details the development of British Freemasonry in India. George Pomfret, the first Provincial Grand Master of East India, was appointed in 1728. Captain Ralph Farwinter succeeded him the following year. In 1730 Farwinter constituted Lodge No. 72 in Bengal. The first Lodge on the Coast of Coromandel was established at Madras in 1752. A military lodge was chartered at Ceylon in 1761. Lodge No. 234 was constituted at Bombay in 1758, and Lodge No. 569 at Surat in 1798. According to Mackey, planting lodges in India coincided with the period of planting lodges in; America. This was not coincidental, for Mackey confirms that the lodges established on both continents, on opposite sides of the earth, were chartered by the same English merchants, soldiers, and sailors.(19) The 1750s also saw the development and expansion of the worldwide missionary movements of Protestant denominations. In India, where drug use was a religious rite in the Hindu religion, Christian missionary activity was curtailed by the BEIC. The Encyclopaedia Britannica confirms that "the British East India Company, conscious of the disadvantages of unnecessarily antagonizing its Indian subjects, excluded all Christian missionary activity from its territories. Indeed, the Company continued the patronage accorded by indigenous rulers to many Hindu temples and positively forbade its Indian troops to embrace Christianity."(20) Not only did the British repress Christian activity in India, London initially forbade Indian nationals, who were considered inferior to the white race, to join Freemasonry. According to Mackey, it was "not until long afterwards and then in small numbers only that they began to be admitted into membership."(21) The decision to admit Indians into Freemasonry was made a half century prior to the first Chinese Opium War in 1840. The purpose of admission was to educate discretely a select group of Indian nationals in London's plan to ship an ever-increasing supply of drugs from India to China. Once destabilized, the vast and wealthy Chinese empire could be easily stripped of its wealth. China: The First Drug Market for London Freemason Thomas Robert Malthus (1766-1834), one of the initiators of British race patriotism, was the first to warn about the overpopulation of the world, especially from the proliferation of the dark-skinned races. The latter half of the nineteenth century saw a renewed interest in British race patriotism when Masonic economist John Stuart Mill (1806-1873) took up the cause of Thomas Malthus. During the days of Malthus and Mill, the British race patriots taught that the Aryan race (i.e. light-skinned, blue-eyed, and blond people) was God's gift to the world. To save mankind from self-destruction, it was taught that the duty of British race patriots was to bring into subjection the ignorant, darked-skinned races. Thereafter, British colonialism no longer was considered a means of territorial expansion, but rather a means of the expansion of the white race at the expense of the dark-skinned nationals and their homelands. This, in turn, gave justification to strip the assets of every nation occupied by the British colonialists. It was during this time that the word "liberalism" was Coined by the BEIC to defend the "freedom" of the British Masonic oligarchy to loot the world of its assets.(22) Colonialism and asset-stripping of a nation became synonymous a century before the First Chinese Opium War in 1840. The primary tool used by London to strip a nation of its assets was, and still is, to declare a drug war on that nation. Not only does widespread drug use weaken the moral fiber of an empire and its vitality to fight, it also strips it of hard currency. For example, between 1829 and 1840, a total of seven million silver dollars entered China, while 56 million silver dollars were sucked out by the soaring opium trade.(23) These were published figures for the decade leading up to the First Opium War; however, this kind of asset-stripping had already been going on for a century. Moreover, it was during this same century that London was planting lodges in India and the Americas as part of its grand scheme to fund the growth of the British empire and its white race. The authors of Dope, Inc. explain how opium played a vital role in London's success: Opium was the final stage in the demand cycle for British-financed and slave-produced cotton. British firms brought cotton to Liverpool. From there, it was spun and worked up in cloth in the mills in the north of England, employing unskilled child and female labor at extremely low wages. The finished cotton goods were then exported to India.... India paid for its imported cloth...with the proceeds of Bengali opium exports to China. Without the "final demand" of Chinese opium sales, the entire world structure of British trade would have collapsed. It is around the slave production and transport of cotton that Britain gathered allies in the United States into the orbit of the East India Company's opium trade cycle.(24) Beginning in 1729, the British exploited an already drug-addicted China. The Witters sketch the development of drug addiction in China up to this decisive year: During the so-called Dark Ages that followed the collapse of the Roman Empire, Arab traders were actively engaged in traveling the overland caravan routes to China and to India, where they introduced opium. Eventually those two countries grew their own opium poppies. The opium poppy was a factor in a drastic change that took place in China: widespread drug addiction among its population.... At first the seeds, and later opium, were used medically. Recreational use was not a problem until the introduction of opium smoking in the late 1690s.... The Chinese government, fearful of the weakening of national vitality by...drugs... especially the potent opiate, forbade their use by the people. In 1729 China outlawed the sale of opium; the penalty was death by strangulation.(25) By imperial edict China closed its ports to "free trade" in 1729 in an attempt to curtail the flow of England's disastrous drug traffic. Free trade and the increase of drug trafficking go hand-in-hand, for free trade means limited inspections or none at borders. Closing the borders, however, did not hamper Great Britain's lucrative drug trade for two reasons. First, the imperial power of China was failing; for the next four decades it was unable to enforce the ban. Second, the Masonic BEIC had already made arrangements with the Chinese Triads, a vicious hodgepodge of secret societies similar to western Freemasonry, to smuggle the drugs across Chinese borders. British Masonic Drug Lodges and the Triad Societies To establish a beachhead on Chinese soil, English Freemasonry chartered its first Masonic lodge in the port city of Canton in 1767 (Amity Lodge No. 407).(26) Over the next six years the British East India Company substantially increased its illegal opium imports to China by selling the drugs to the Triads, who then smuggled them from port warehouses into inland China. By 1773, the-burgeoning demand for opium was so great that the British colonial government of India granted the BEIC an exclusive monopoly over the entire Indian poppy crop to meet Chinese demand.(27) It was at this time that the British began to initiate Indian nationals into Freemasonry. With these Indian lodges and the Chinese Triad societies, London declared a secret drug war on China. A History of the Triad Societies Secret societies have long played an integral role in the history of China. An old Chinese saying reads, "The officials draw their power from the Law, the people from the Secret Societies."(28) Of the many secret societies that have existed in China, none has wielded greater power than the Triad group. They are mentioned in nearly every history of the Chinese people. Like Freemasons, their members are bound together by an intricate system of secret rituals, oaths, and passwords. And like Freemasonry, they actually were a brotherhood for freedom. For example, they led many brave, but abortive uprisings against the Manchu emperors, who retaliated with even more than usual oriental ruthlessness. Fenton Bresler in The Chinese Mafia (1984) explains: Just as the Mafia was founded by [Freemason] Giuseppe Mazzini in Palermo, Sicily in 1860 as a guerilla force to drive out a foreign ruler and unite with mainland Italy in the name of patriotism and liberty, so the earliest Triad Societies came into existence in Fukien province in the latter part of the seventeenth century as valiant resistance fighters against the alien oppression of the Manchus, "barbarian" tribesmen who had swept across the Great Wall of China and in 1644 defeated the ruling native Ming Dynasty of Emperors to set up their own Ch'ing Dynasty."(29) Legend traces the founding of the first Triad Society to a militant group of Buddhist monks at a monastery near Foochow in Fukien province in 1674. Their monastery was a rallying-point against the Manchus, and the monks practised a highly specialized form of physical self-defense that they had perfected for themselves—Kung Fu. The Triads' activities also had a darker side. Like the Italian Masonic Mafia, the Triads directly, or through subsidiaries, controlled much of the gambling, robbery and prostitution enterprises in China and in overseas Chinese communities. Like the Freemasons, they were unmatched in politics. In imperial China, the Triads were the principal instrument for the expression of political grievances. And like Freemasonry, it was the Triad Societies who won the political fortunes of the republic, whose most famous president was Triad member General Chiang Kai Shek.(30) Hong Kong police officer W.P. Morgan observed in 1960 that "'the assistance given by the Triad Society to the Republicans resulted in its virtual official recognition by the new government and, free from restrictions, it expanded to an even greater extent than before. Its power as a lobbying force became such that ambitious civic and military officials were usually bound to join the society in order to further their ends, and merchants and traders found membership and subscriptions to the society greatly eased their commercial ventures."(31) The Triad societies were fit companions for the Freemasonic British East India Company. This "Chinese Mafia" taught the English Freemasons how to subvert the Chinese government and thus bypass the drug control laws meant to suppress and eliminate opium use. And it was the Triads' underworld drug-dealing knowledge that was carried back in 1860 by those same English Masons to Freemason Joseph Mazzini and his Sicilian Mafia. With assistance from the Triads, opium imports into China kept rising in the name of British commercial enterprise. Fenton Bresler in The Chinese Mafia picks up the story: Successive Emperors pronounced further bans on the traffic in 1796, 1800, 1813 and 1815—but all to no avail. The situation became intolerable. The Chinese government demanded the right to regulate trade into its own country and protect its own subjects, the British demanded recognition of the right to do exactly what they wanted.(32) In blatant disobedience of the 1729 edict and its successors, and with the services of the Triads under the compulsion of Masonic Brotherhood," the British East India Company increased the amount of opium entering China from 200 chests in 1729, to 30,000 to 40,000 chests (about 130 lbs. each) in 1838.(33) Throughout the eighteenth century, a complex network of drug-smuggling secret societies were developed on mainland China with the help of local officials, who pocketed bribes from the smugglers. The Masonic-controlled BEIC shipped the drugs from India to their port in Canton. >From there Triad gangs smuggled the drugs out of the warehouse area into the pores of the communities. And like the Italian Mafia one hundred years later, if any of their members or government officials got out of line they were ruthlessly eliminated.(34) While a succession of failing emperors helplessly watched the debauchment of the population and the theft of their nation's assets, everyone beneath them was making money in the illegal drug trade.(35) By 1829, a full century after the 1729 drug control edict, uncontrolled drug traffic was creating such severe trade deficits that Imperial China got serious about drug addiction and ordered the strict enforcement of the century-old edict against importation. The Emperor sent an honest and vigorous official, Imperial Commissioner Lin Tse-Hsu, to Canton to handle the problem. Lin demanded that the foreign importers surrender their stores and cargoes of opium. When the British traders refused, he threatened the Chinese merchants who were illegally trading in opium.(36) When his warnings were repeatedly ignored, Lin burned 20,291 chests of opium in 1830, a hoard valued at £2 million. The strict enforcement in 1829 by the Chinese government of its successive drug control edicts, and the 1830 prohibition of free trade created a crisis for London. The destruction by Lin Tse-Hsu of the Warehoused opium inventory was only a temporary financial blow. The long-term commercial implications to England, if the Imperial Commissioner's order were allowed to stand, was enormous. England's economic survival was at stake. London could not permit her lucrative drug trade to be curtailed. Her worldwide commercial expansion required it and funds to recapture the Americas demanded it. England must go to war. But, how could Great Britain defeat an oriental nation on the far side of the globe, numbering 350 million people? Communications criss-crossed the oceans. A drug trafficker assured his London superiors that "as long as this country [China] maintains its drug traffic, there is not the slightest possibility that it will ever become a military threat, since the habit saps the vitality of the nation."(37) Hence, the British garrison at Canton was given orders to force drugs down the throats of the Chinese until the Imperial Army was decimated by drug addiction. In preparation for war, the BEIC opened in 1839 its first Masonic lodge at Basrah (in present-day southern Iraqi), to function as a center for Great Britain's intelligence operations under the guise of "pan-Islamism" or "pan-Arabism."(38) Over the next three decades intelligence lodges were established at every port where the BEIC landed. These British Masonic outposts served two purposes: (1) to keep the colonial governments in the East abreast of any potential American-type revolution; and (2) to control the movement of drug traffic to the West. Meanwhile, as war plans were discussed at Canton in 1838, the BEIC sent a memorandum to Freemason Henry Palmerston, the British Foreign Secretary, requesting that the Emperor be forced to agree to "(1) full legalization of opium trade into China; (2) compensation for the opium stockpiles confiscated by Lin to the tune of £2 million; and (3} territorial sovereignty for the British Crown over several designated offshore islands. In a simultaneous memorandum to Palmerston, Jardine placed J&M's [Jardine and Mathesons] entire opium fleet at the disposal of the Crown to pursue war against China."(39) Convinced that the time was right, Great Britain sent 10,000 troops to lay siege to Chinese ports in June of 1840. Decimated by ten years of rampant opium addiction within the Imperial Army, the Chinese forces proved no match for the British.(40) Palmerston maintained constant communication with the war effort. Confident of victory, he sent a message in January 1841 to Freemason Lord Auckland, then Governor General of India, informing him of Britain's desire to increase opium production after the war. Following is an excerpt from that communication: The rivalship of European manufacturers is fast excluding our productions from the markets of Europe, and we must unremittingly endeavor to find in other parts of the world new vents for our industry [opium].... If we succeed in our China expedition, Abyssina, Arabia, the countries of the Indus and the new markets of China will at no distant period give us a most important extension to the range of our foreign commerce [of opium]....(41) While the British fleet encountered a few difficulties in Canton, its threat to the northern cities, particularly Nanking, forced the Emperor to terms. Painfully aware that any prolonged conflict would merely strengthen Britain's bargaining position, the Emperor petitioned for a treaty to end the war.(42) In 1841, Crown Commissioner Captain Charles Elliot went to the negotiating table with the Emperor. He had orders from Freemason Lord Palmerston to demand admission of opium into China as an article of lawful commerce, increase indemnity payment, cede Hong Kong island to British colonial rule, and give the British access to several additional Chinese ports.(43) Bowing to a superior sovereign, the Emperor had no choice but to see his beloved China further impoverished. The Treaty of Nanking, signed in 1842, brought the British Crown an incredible sum of £21 million, as well as extraterritorial control over the "free port" of Hong Kong, which to this day is the capital of Great Britain's global drug-running operations. The only drawback of the treaty was the requirement that British opium merchants pay import duties, which created onerous bookkeeping and tax burdens to the Masons who were accustomed to the illegal drug trade.(44) The First Opium War solidified the production and proliferation of drugs. The profiteering from mind-altering drugs became a cornerstone of British imperial policy. The drug trade was managed by English Freemasonry's far eastern lodges, which were strategically chartered throughout China following the war.(45) The Royal Sussex Lodge, No. 735, for instance, was warranted at Canton in 1844. In 1847 Samuel Rawson was appointed Provincial Grand Master for China. All in all, the Grand Lodge of England established lodges in southern China at Amoy, Canton, Foochow, Swatow, and five at Hong Kong. In northern China, lodges were chartered at Chefoo, Chinkiang, Hankow, Newchang, Tongshan, Wei-Hai-Wei, two at Tientsin, and three at Shanghai.(46) Before the ink was dry on the Treaty of Nanking, the British opium merchants began complaining about the bookkeeping overhead created by import duties. In response to their complaints, the British Crown precipitated events that would culminate in the Second Opium War against China in 1856, with similar disastrous consequences for the Chinese and with monumental profits for London's drug traffickers.(47) Meanwhile, Lord Palmerston had attained the 33rd degree in Freemasonry; he had also been elected Prime Minister of England. As High Priest of English Freemasonry and head of British policy, he launched the Second Opium War in 1856, thereby fulfilling the "open China" policy he had outlined fifteen years earlier as foreign secretary. In 1860 the British completed the process of opening all of China to the opium trade.(48) That year the British East India Company turned over to the Triads the shipping of drugs into China and went into "legitimate business" by incorporating merchant banks and trading companies on the island of Hong Kong and the port of Shanghai under the corporate name of the Hong Kong & Shanghai Corporation. Banking became the primary source of "legitimate" revenue for the Masonic oligarchy; revenue that was generated by the financing of poppy farmers, drug manufacturers, and the laundering of dirty drug money deposited by the Triads. The British East India Company was no longer needed by English Freemasonry's "merchants of the earth." It went into decline and in 1873 was dissolved. To this day, the banks of the former Masonic stockholders of the BEIC serve as the central clearing house for all Far Eastern financial transactions relating to the black market in opium and its heroin derivative.(49) These financial transactions were, and are still, made in gold bullion from Great Britain's South African gold mines . The importance of London's control of South African gold mines is directly related to the drug trade in the Orient. Gold is the only medium of monetary exchange accepted by opium farmers. British bankers at Hong Kong pay the Chinese Triad Societies in gold bullion for their heroin. The gold is then used to purchased raw opium from the farmers. From the farmers the opium is transported by mule train to the drug manufacturers. The cycle is complete when the heroin is shipped to Hong Kong in exchange for more gold.(50) An ever increasing demand for gold, therefore, was directly proportionate to the escalating drug market. British Masonic bankers knew that their South African gold mines could not provide an endless supply, but central banking could—so long as central banking in every nation was under their control. How English Freemasonry accomplished this feat will be discussed in chapters 4 and 5. Meanwhile, within four years after the end of the Second Opium War, Great Britain held financial control of seven-eighths of the vastly expanding opium trade into China. This trade amounted to over £20 million in 1864 alone. Over the next twenty years, the total opium exported from India—most of which went to China—skyrocketed from 58,681 chests in 1860, to 105,508 chests in 1880.(51) Although the Manchu dynasty still opposed the trade, by 1898 China was well established in growing its own poppy for export. The controllers of the growing, manufacturing, and distribution of the drugs were the Chinese Triads, the financiers of the Chinese Republicans. With drug revenue to finance the overthrow of the dynasty, the Chinese Republicans deposed the Manchus on February 15, 1912. Leading the rebellion was the westernized Triad enforcement officer Dr. Sun Yat Sen. Dr. Sen's successor was General Chiang Kai Shek, himself a member of the old-style Triad Society.(52) Alfred W. McCoy in his monumental study, The Politics of Heroin in South-East Asia, shares the evaluation of a Chinese historian of these events: "Perhaps for the first time in Chinese history, the underworld gained formal recognition in national politics."(53) Fenton Bresler, in his book The Chinese Mafia, informs us that "the Triads became the strong-arm of Chiang Kai Shek's rule: generals, soldiers, intelligence workers, villains, gangsters, drug traffickers, businessmen, murderers, a mixture of the honest and the criminal."54 At the center of the Chinese revolution was Hong Kong. British Freemasonry had foreseen that the Triad-backed Republicans would sooner or later overthrow the Manchus. In 1898, a decade before the revolution, London signed a ninety-nine year lease with the Chinese for the "free port" of Hong Kong. The sole purpose of the lease was to establish "offshore" banking that would be exempt from Chinese audits, no matter what government was in power. To this day no Hong Kong bank has been audited by any Chinese government, nor has any outgoing ship been checked for cargoes of opium.(55) >From this beginning at Hong Kong in 1898 the offshore banking of British Freemasonry was destined to spread around the world. In fact, Fenton Bresler informs us that illegal drugs are today transported to the West on Royal British Fleet Auxiliary vessels which supply the Royal Navy all over the world.(56) Bresler also documents throughout his book how the ruthless mafia-style Triads continue to protect their British Masonic lords. By the beginning of the twentieth century, the narcotics problem had become universal and severe. In response, an international conference was held at The Hague in 1911 (where England had founded one of her first Masonic Lodges on the Continent in 1731). This gathering became known as the "Hague Convention," which itself was a follow-up to an Anglo-Chinese agreement made in 1905. World pressure on England and China had forced an agreement to curtail drug traffic; the Chinese agreed "to reduce domestic opium production, while the British were to reduce their exports to China from British India correspondingly."(57) The purpose of the Hague Convention was to regulate the narcotics trade, with the goal of eventual total suppression. The success of the Hague Convention depended on strict enforcement of the earlier Anglo-Chinese agreement of 1905. The British, however, completely evaded both the 1905 and 1911 agreements by shipping opium to their unregulated extra-territorial bases, Hong Kong and Shanghai. The Chinese, who had subscribed enthusiastically to both protocols, soon discovered that the number of licensed opium dens in the Shanghai International Settlement had jumped from eighty-seven in 1911 at the time of the Hague Convention to 663 in 1914. In addition, the Triads, backed by British Masonry and operating out of the warehouses of Shanghai, doubled their smuggling operations to inland China.(58) The British Masonic drug lords had remembered well the treaty that followed the First Opium War, which created a massive bookkeeping burden to handle import duties. They would tolerate no repetition of that with the Hague Convention. The end result was that the Hague Convention failed to regulate the narcotics trade. Instead, Masonic drug traffickers side-stepped its protocols by moving production and distribution to the black market. Predictably, profits increased. The broad compatibility between British Masonic banking and the worldwide production of drugs can be seen from the following and telling example. In 1911, London issued a major new loan to Persia (now Iran), the collateral of which was Persia's opium revenues.(59) This kind of international loan became the new way by which the British Masonic Oligarchy could legally and vastly increase its wealth. By advancing money to Third World nations, the Masonic financiers can in effect say, we're only loaning money to this nation. We can't help how it's repaid. China: from Democracy to Communism The wealth of any nation today is determined by its trade with other nations. If a nation sells less than it buys in return, it is said to have a trade deficit. If it sells more, it has a trade surplus, which results in an increase of its gold supply. For example, the two world wars made the United States of America the wealthiest nation on earth because its industrial output to supply war materials to Allied nations was far greater than what it purchased abroad. By the end of World War II, America held in reserve most of the world's gold. Each nation in the world struggles to develop something unique to sell to other nations: banking services, oil, agricultural products, steel, gold, diamonds, computer technology, and narcotics. Terms, such as banking economy, oil economy, agricultural economy, industrial economy, or narco-economy define any given nation's economic output. If a nation sells more of its economic output than it buys, it becomes wealthy. How that wealth is distributed to its citizens will determine whether a middle-class will develop. Absolute monarchies, communist republics, socialist republics, and corrupt democratic republics generally have no middle class, because the rich and powerful control a strong central government, thereby keeping most of the citizenry poor. On the other hand, constitutional monarchies and democratic republics that protect citizens with a "bill of rights" and assure a free enterprise system with protective laws and tax incentives, spread their wealth more evenly among its citizens, thus developing a strong middle class. By nature, nations with narco-backed economies are corrupt. Not only are their citizens poor, the corrupt narco-rich, who fund their own private army to dispose of enemies, bribe corrupt politicians so they can operate with impunity. Such was the China ruled by Triad member, Chiang Kai Shek. Although the British Masonic Hong Kong banks supported Chiang with narco-dollars, he faced opposition to his ambitions to head a free, republican China. To the north Grand Orient Freemason Mao Tse Tung. commander of the Chinese Red Army, had in the fall of 1926 captured the northern seaport of Shanghai, by then the country's largest and most modern city. The recapture of Shanghai was essential to Chiang Kai Shek and his narco-funded republican party. Chiang, therefore, solicited the help of the Triad Society in Shanghai, known as the Green Pang and which was headed by a brilliant young villain named Tu Yueh Sheng.(60) The Triads were the strong-arm wing of Chiang's republican party, which was known as the Chinese Nationalist Party, or Kuomintang (KMT). Chiang used the Triads for jobs his official KMT army could not do. For example, in the spring of 1927, soon after he arrived in Shanghai, Chiang met with Tu secretly to plan the destruction of the Communists. The morning of April 12, 1927, Green Pang thugs massacred almost all the members of the Communist-led labor unions. As a reward, Tu received the official rank of major-general in the KMT Army and was unofficially "allowed to consolidate his position as the 'Opium King' of Chiang Kai Shek's China. (61) Mao Tse Tung, however, had plans of his own. If drug revenues could finance the free society of China, it could also bankroll Communism. In 1928 the Chinese Red Army began planting large fields of poppy in areas over which they had won control.(62) British Freemasonry, not opposed to doing business with anyone who grew poppy, bought opium from Mao through its Hong Kong banks. By 1935 the Communists controlled more opium fields than did the Republic. Chiang Kai Shek's revenues began to decline and his political days were numbered. After World War II, China in effect was handed over to the Communists by the West by the decision to refuse General Chiang Kai Shek military help. In 1949, remnants of the general's rag-tag KMT army fled to opium-rich Burma, where it built airstrips to fly opium to South Vietnam. Some Triad Societies went with them, while others fled to Hong Kong. The Communists, now in control of mainland China, sought throughout the 1950s to extend their territory by supporting Ho Chi Minh, president of North Vietnam from 1945 to 1969, while constantly fighting the remnants of the KMT for control of drug trade in the Golden Triangle. The Golden Triangle is comprised of the rugged Shan hills of northeastern Burma, the mountian ridges of northern Thailand, and the Meo highlands of northern Laos. In the 1960s, these skirmishes, which by then had involved North Vietnam, erupted into a full-blown war, known as the Vietnam War, a drug war which will be discussed in chapter 8. Meanwhile, needing the financial support of the Hong Kong banks to back his own narco-economy, Mao Tse Tung permitted the British lease of Hong Kong to continue. The British bankers carried on business as usual. By 1983, Red China had nine million acres of poppy under cultivation. Today sixty-four percent of the Peking government's income comes from the drug trade, while fifty to seventy percent of the world's drugs are refined in 101 legal narcotics factories in mainland China.(63) More Wars Bring More Drugs Meanwhile, as a welcomed relief for the battlefield wounded, the purchase of narcotics during World War I brought more wealth to the Masonic drug barons. After the war the vast warehouses of opium needed new customers. The new market was Japan. So widely known was this British traffic into Japan that even the U.S. weekly magazine, The Nation, ran a series of documentary reports highly critical of the British role in illegal drugs.(64) By this time the League of Nations had been founded by Grand Orient Freemasonry, the bitter enemy of English Freemasonry. The League of Nations' Opium Committee demanded that the British government account for the vast discrepancies between the official figures on opium shipments into Japan released respectively by the Japanese and British governments. From 1916 to 1920, Japanese figures showed a thriving British traffic; London claimed only negligible shipments, all earmarked for medical use. When confronted with this discrepancy as prima facie evidence of large-scale British black market smuggling of opium into Japan, the British delegate argued that such black-marketeering merely proved the case for creating a government-owned opium monopoly. London had little concern for the views of the League of Nations. For examples in 1923, after a British government commission under Lord Inchcape had investigated India's finances, its report went on to warn against reducing the acres of poppy under cultivation, because of the need to safeguard "this most important source of revenue."65 Inchcape was a direct descendant of the Masonic founder of the Peninsular & Orient Steamship Line which transported drugs a century earlier. As heir to the family's fortune, he had good reason to endorse continued opium production in British India. Brian Ingles wrote in The Forbidden Game: A Social History of Drugs (1975) that while the British Government was professing to be taking measures to reduce consumption of opium and hemp drugs, its agents in India were in fact busy pushing sales in order to increase the colony's revenues."(66) By 1923 the United States Congress was concerned about the British-run black market in opium. Representative Stephen Porter, Chairman of the U.S. House of Representatives Foreign Affairs Committee, introduced and passed a bill through Congress that called for country-by-country production and import quotas on opium, with the goal of reducing consumption by ninety percent. The ten percent left represented generally accepted levels of necessary medical consumption. Porter's proposal was brought before the League of Nations Opium Committee, where it was publicly opposed by the British representative. In defiance of the world community, the British delegate drafted an amendment to Porter's plan which called for increased quotas to account for "legitimate opium consumption" beyond medical use. The quotas assigned beyond that required for medical use referred, of course, to the opium needed to supply the massive addict population in British colonies and spheres of influence where opium was unregulated. The U.S. and Chinese delegations were enraged and led a walkout of the plenipotentiary session, while the British rubber-stamped the creation of a Central Narcotics Board, which was designated with authority to gather information and nothing more. Journalists stationed in Geneva henceforth referred to what remained of the Committee as the "Smugglers Reunion."(67) The attempt by the League of Nations to regulate the escalating illegal drug traffic controlled by the British was met with such shenanigans at every turn. How was it that London was able to rebuff every political attempt to thwart her trafficking in narcotics? The answer can be found in her control of the political machines and financial institutions of all industrial nations. The next chapter will document how English Freemasonry took over the politics of the world's seven largest industrial nations to assure that her number one income producer—narcotics—would always be secure. --cont-- Aloha, He'Ping, Om, Shalom, Salaam. 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