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Asian Organised Crime - Australian Parliamentary Inquiry
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PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
ASIAN ORGANISED CRIME IN AUSTRALIA
A Discussion Paper by the Parliamentary Joint Committee on
the National Crime Authority
February 1995
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to table of contents)
3. Asian Organised Crime - Definitions
3.1 The words 'Asian', 'organised' and 'crime' each require a
brief comment in order to explain the scope of the remainder of
this discussion paper.
3.2 The discussion paper deals with the
three ethnically-based groupings commonly regarded as making up
the 'Asian' organised crime of interest to Australian law enforcement
agencies:
the various Chinese groups, sometimes referred to as the triads;
the Vietnamese groups;
and the Japanese groups, generally referred to as the yakuza
or boryokudan.
3.3 The Report of the Review of Commonwealth Law Enforcement
Arrangements recommended that the NCA have 'a strategic and/or
coordination role' in respect of eleven matters, three of which
were 'Chinese Triad Societies', 'Vietnamese organised crime groups',
and 'Yakuza groups' (para. 7.50(4)). The Government has accepted
this recommendation.
3.4 The Committee recognises that the vast majority of the ethnic
communities referred to are not involved in organised, or indeed
any, criminal activity. In using ethnicity as a defining factor,
the Committee is following the well-established practice of law
enforcement agencies both in Australia and overseas. In the view
of these agencies, the particular criminal organisations use membership
of the relevant ethnic group as a key factor in determining who
is allowed to participate, especially at the more senior levels
or in taking the major roles in particular crimes. Ethnic group
membership is sometimes seen as a key factor enabling ethnic-group
organised crime to be more successful than other groups. note#4
It is a matter for debate, however, whether the ethnic factor
is sometimes overstated in the context of 'Asian organised crime'
in Australia.
3.5 Russian organised crime has attracted a great deal of media
interest since the break-up of the Soviet Union. However, it is
not covered in this discussion paper, mainly because it is not
conventionally considered as 'Asian'. Moreover, there is, it seems,
little evidence that it has established any Australian presence
so far. Only one significant case appears to have been reported,
the one in 1993 by the Australian Federal Police (AFP): note#5
In January 1993, the AFP provided ACS [Australian Customs Service]
with information which led to the targeting of Russian ships visiting
Melbourne. As a result, a Russian seaman was arrested as he left
the dock area in possession of 5.5kg of heroin and l50g of cannabis
resin. Further inquiries resulted in the arrest of two alleged
principals in Melbourne. This operation was the culmination of
several years investigation and resulted in the identification
of alleged syndicate members in the former Soviet Union and Australia.
AFP members have travelled to Russia and as a result liaison has
been established with the Russian police authorities.
3.6 However, by omitting consideration of Russian organised crime
from this discussion paper, the Committee is not taking issue
with the view that Australian agencies must remain alert to the
real possibility that Russian-based criminal groups may target
Australia. The Committee notes that the Report of the Review
of Commonwealth Law Enforcement Arrangements recommended that
the NCA have 'a strategic and/or coordination role' in respect
of, amongst other groups, 'Eastern Block Organised Crime Groups',
and that the Government has accepted this recommendation
3.7 Although geographically part of Asia, the Lebanon is not normally
considered 'Asian' in the context of discussion of Asian organised
crime. Hence, the Committee's discussion paper does not cover
the activities of organised Lebanese criminal groups in Australia,
although the Committee notes that such groups have for many years
been involved in drug trafficking into Australia. note#6
3.8 Organised crime groups of ethnic Koreans reportedly exist
in the United States, note#7 but there is
nothing that the Committee is aware of to suggest they have established
any presence in Australia.
3.9 The question of how best to define the term 'organised crime'
has caused much debate over the years. note#8
For the purposes of this discussion paper, the Committee does
not consider it necessary to enter into this debate or to define
organised crime in any rigorous way. The following definition
used by the NCA will serve: 'For the purpose of describing the
broader criminal environment, the NCA defines organised crime
as a systematic and continuing conspiracy to commit serious offences'.
note#9
3.10 The Committee recognises, however, that an important issue
in assessing the threat from, and the impact of, Asian organised
crime in Australia is the degree to which it is organised. One
of the suggestions made in this discussion paper is that Asian
organised crime, as it impacts on Australia at least, is considerably
less organised than might be thought from an uncritical reading
of media reports. The Committee considers that the following observation
made in 1989 by Dr Grant Wardlaw is pertinent in this context:
It seems that one problem we have is that we may often confuse
criminal organisation or sophistication with organised crime.
As society becomes more complex and as technologies open the way
to new crimes or more sophisticated or larger scale ways of committing
old ones, so the nature of crime is changing with the result that
it is, almost by definition, becoming more organised. Looked at
this way, most major crime will eventually become organised crime.
Surely this is not what we mean when we speak of organised crime
though, and use its existence to justify the creation of new investigative
agencies and the legislating of new powers? Nevertheless, it seems
to me that many of the cases, particularly in the drug trafficking
field, which are cited as evidence of the grip of organised crime
are evidence of nothing more than organisation and (rarely) sophistication.
To be sure, this constitutes a serious law enforcement problem,
but one which does not carry the sinister implications of being
'organised crime'. note#10
4.
Chinese Organised Crime in Australia
Scope
of Criminal Activity
4.1 The attention of Australian law enforcement agencies has focused
on Chinese organised criminal activity in relation to a wide range
of matters, including drug importation and distribution, illegal
gambling, illegal prostitution, extortion, immigration malpractice
and money laundering. A relatively new area in which organised
ethnic-Chinese are believed to be prominent is sophisticated credit
card fraud. note#11 There appears to be
no solid evidence of significant organised, ethnic-Chinese, street
gang activity, although it is difficult to be sure as there are
many media reports that refer simply to 'Asian' gangs. note#12
4.2 The priority interest of Australian agencies has been in relation
to organised, ethnic-Chinese, involvement in heroin trafficking
into Australia from south-east Asia.
Drug Trafficking Activities
4.3 A 1991 assessment for the Commonwealth Government stated:
In terms of what might be termed 'mainstream' importation of heroin
to meet Australian market demand, the principal source region
(in terms of regularity of supply) is South-East Asia. This statement
is not intended to diminish the importance and threat from other
regions; a significant amount of heroin is known to be sourced
from South-West Asia and the Middle East (even though seizure
results indicate that these areas are responsible for 5 to 10
per cent of overall supply, some enforcement authorities estimate
that the real order of magnitude is much higher than this). The
assertion concerning South-East Asia as the principal source of
heroin supply is persuasively based on both the consistent intelligence
reporting on criminal activities and in the investigative outcomes
of successful seizures of heroin. note#13
4.4 Others agree on the importance of south-east Asia as a source
of the heroin arriving in Australia. The Report of the New
South Wales Crime Commission for the year ended 30 June 1993,
for example, stated on page 16 that 'the large importations mainly
originate in China and South East Asia'. More recently, the Australian
Federal Police (AFP) stated: 'Some 80% of the heroin seized in
Australia can be sourced to the Golden Triangle' note#14
- that is, to the area in south-east Asia where Burma, Thailand
and Laos meet.
4.5 Australian law enforcement agencies believe that ethnic Chinese
have been for many years, and still are, the major organisers
of heroin imports into Australia. A 1988 media report cited the
National Crime Authority's Chinese liaison officer as saying that
the Chinese had been linked to every major seizure of heroin in
the previous two financial years, totalling 63 kg, and that an
estimated 96 per cent of those cargoes seized had been triad-related.
note#15
4.6 A 1991 assessment stated: 'The AFP and others estimate that
Chinese crime groups are responsible for the importation of perhaps
80 per cent of all heroin being imported into Australia'. note#16
According to a media report based on a leaked 1992 national intelligence
assessment, 85 to 90 per cent of heroin imports into Australia
were organised by Chinese organised crime groups. note#17
The NSW Crime Commission reported in 1993: 'Essentially, heroin
importation is largely controlled by persons of Chinese origin
in Australia and overseas'. note#18 The
AFP said in 1994 that:
Stability in the price of heroin and its quality in Australia
indicate the importation of heroin into Australia is well organised
and dominated by Chinese Organised Crime groups. Heroin is routed
through Bangkok, the Malay Peninsula, Hong Kong and the People's
Republic of China. note#19
4.7 Ethnic-Chinese are much less dominant
in the distribution of heroin once it has been imported. The NSW
Crime Commission reported in 1992 on organised heroin trafficking:
Some groups are concentrated at certain levels. Thus it has been
observed that the highest stratum is often occupied by persons
of Chinese origin who tend to be responsible for the introduction
of much heroin to Australia and conduct the largest bulk transactions.
It is unusual to find persons of Chinese origin in a supply stratum
involving small quantities. The pattern is less consistent with
other groups which will buy bulk locally and also engage in importation.
Their associates within a group may occupy a range of levels in
the supply chain and they will deal with groups which dominate
particular levels such as the Chinese groups. note#20
4.8 A 1991 intelligence assessment stated:
One feature of heroin trafficking arrangements in Australia that
reinforces the notion of an accommodation between operators, is
that the majority of the importation efforts of the Chinese criminal
groups is geared towards supplying other, non-Chinese, groups
for their own distribution networks. The Chinese operate what
is largely a heroin wholesale business, with little evidence of
their further involvement downstream into retail distribution.
note#21
Triad
Societies and Chinese Organised Crime
4.9 In much popular discussion, Chinese organised crime is treated
as synonymous with the triad societies, although the importance
of the connection between the two is a matter for some debate.
The following description of the triads is taken in edited form
from a 1992 report of a United States Senate subcommittee: note#22
Modern triads trace their history to secret political societies
formed in China during the 17th Century to overthrow the Ching
Dynasty and to restore the Ming Dynasty to power. The term 'triad',
later coined by British authorities in Hong Kong, is based on
the triangular symbol found on flags and banners of the early
secret societies. The symbol represents the three essential elements
of heaven, earth, and man.
Because the early triads were attempting to topple the ruling
elements of the day, and had, in fact, been persecuted in the
past they developed secret forms of identification and communication.
Triads today remain obsessively secretive and closed criminal
fraternities. The triads also developed highly ritualized initiation
ceremonies meant to instill a strong sense of secrecy, and more
importantly, loyalty to other triad members. ...
The existence of triads is most extensively documented in Hong
Kong, where the number of triad members is estimated to be in
the tens of thousands, and to a lesser extent in Taiwan. ...
Triad societies all display some degree of hierarchy, and a typical
triad has members organized by rank. Each rank carries a title
and a numerical value, based on triad ritual. The leader of a
triad is known as the 'Dragon Head,' and carries the rank '489'.
Other 'office bearer' positions also exist, including '438', which
is the second highest rank in a triad, and may be held by several
different officials. ... other triad members are known as ordinary
members or soldiers, and hold the rank of '49'. The relationships
among individual triad members are based on ties between 'Dai-Lo's'
(big brothers) and 'Sai-Lo's' (little brothers), where the Sai-Lo's
give loyalty, support and sometimes money to their Dai-Lo, in
exchange for protection and advice.
Although hierarchical in nature, triads tend not to be strictly
controlled from the top, in contrast to more familiar crime groups
such as La Cosa Nostra. Instead, triad members frequently branch
out into their own criminal enterprises. While the triad leadership
does not always initiate and direct the activities of all the
triad members, triads clearly serve as international networking
associations that facilitate such activity. Moreover, monetary
profits from criminal activity of triad members often flow to
the top in indirect ways, such as through gifts. ...
As one member of the Hong Kong-based 14K triad testified:
"I was not required to pay any percentage of profits to the
14K leadership. Triads do not work that way. Triad members do
favors for each other, provide introductions and assistance to
each other, engage in criminal schemes with one another, but triads
generally do not have the kind of strictly disciplined organizational
structure that other criminal groups like the Italian mafia have.
For example, a triad member would not necessarily be required
to get permission from the dragonhead of his particular triad
in order to engage in a particular criminal undertaking - even
if the particular deal involved an outsider or even a member of
another triad. On the other hand, on the occasion of traditional
Chinese holidays such as Chinese New Year, triad members traditionally
give gifts to their 'big brother' or 'uncles' who often are office
bearers in the triads."
Further testimony regarding relationships among Chinese crime
groups came from Johnny Kon, a convicted heroin smuggler and triad
member. He noted the importance of the Chinese concept of 'Guan
Shi' in facilitating criminal relationships:
"Members of the Big Circle get power from 'Guan Shi' which
is a relationship among people. Through such relationships, Big
Circle members can call on triad members or other Big Circle members
for help."
Triad membership is thus a valuable asset to the new international
criminal. Triad membership facilitates criminal activities in
a manner similar to the way membership in business associations
facilitates the activities of a legitimate businessman. Thus,
even though triads, as organizations, may not control a wide range
of criminal activity, it is important for law enforcement officials
to understand, investigate, and develop intelligence about triad
organizations, because individual triad members are invariably
involved in a wide range of criminal activity.
Although the criminal activities of triad members can be thought
of as constituting both domestic and international activities,
even domestic activities such as illegal gambling, extortion,
and prostitution often have an international element. For example,
prostitutes are imported or smuggled, sometimes against their
will, over national borders, while proceeds from illegal domestic
activities such as gambling are often laundered internationally.
International activities include narcotics trafficking, money
laundering, counterfeiting currency and credit cards, and alien
smuggling. ...
The RHKP [Royal Hong Kong Police] estimate that there are currently
about 50 triad societies in Hong Kong, with about 15 of those
being very active. While it is very difficult to determine the
exact number of triad members in Hong Kong, most authorities agree
that there are at least 80,000. Some triads are thought to have
as little as 100 members while Hong Kong's largest triad, the
Sun Yee On, is believed to have at least 25,000 members.
After the Sun Yee On, the next largest triads are the Wo Group,
including the Wo Hop To and at least nine other subgroups, which
have over 20,000 Hong Kong members. The 14K Triad, including over
30 subgroups, is also believed to have over 20,000 Hong Kong members.
The fourth largest group is the Luen Group with approximately
8,000 Hong Kong members. The Tung Group is thought to have approximately
3,000 Hong Kong members. All of these groups also have substantial
overseas membership. Other triads exist with smaller membership.
...
The Big Circle Gang, which is sometimes referred to as a 'Mainland-based
triad' is a relatively new group. This group initially consisted
primarily of former Red Army Guards who left China for Hong Kong.
Big Circle Gang members are particularly violent, specializing
in armed robberies of jewelry stores in Hong Kong as well as in
heroin trafficking. The Big Circle Gang is not technically a triad,
but most Big Circle Gang members are also members of various triad
societies. Johnny Kon, a former Big Circle associate and convicted
heroin smuggler, testified that he helped organize a group of
Big Circle Gang members into a tightly organized and disciplined
group known as the Flaming Eagles which expanded from jewelry
store robberies in Hong Kong to a world wide heroin distribution
network. All of Kon's Big Circle associates were also members
of other triads. ...
The main law enforcement body in Taiwan, the National Police Administration
(NPA), recognizes two major Taiwan-based triads. The best known
and largest of the two is the United Bamboo Gang, also known as
the Chu Lien Pang. The second group is the Four Seas Gang, also
known as Sei Hoi.
The United Bamboo Gang has an estimated membership of over 20,000.
... The Four Seas Gang has an estimated membership of over 5,000.
4.10 The Director of the United States Central Intelligence Agency
told a United States Senate committee in April 1994:
These triads are fluid associations of criminals and quasi-legitimate
businessmen based on contact networks and cultural, geographic
and linguistic ties. ... The triads play an important role in
worldwide heroin trafficking by facilitating transport and by
providing a network of contacts for triad affiliated smugglers.
They play a particularly important role in moving heroin through
transshipment hubs, such as Hong Kong, Taiwan and Singapore, due
to their influence over transportation unions and over shipping
companies. note#23
4.11 Criminal triad societies of a sort are said to exist in Australia,
even if they lack some of the characteristics of the traditional
Hong Kong triad societies. The National Crime Authority's then
Chairperson, Justice Stewart, said in 1988:
Broadly speaking, the Authority's investigations confirm earlier
assessments that Chinese criminal elements in Australia have formed
criminal associations, modelled to some extent on the traditional
Chinese Triad secret societies such as exist in Hong Kong, Taiwan
and elsewhere in Asia. These groups involve themselves in a wide
range of criminal activities such as drug importation and distribution,
extortion, fraud and money laundering.
There is no real evidence that these associations follow Triad
initiation ceremonies or other rituals, or adopt a strict internal
hierarchy. There is evidence however that members of well known
Triad societies are resident in Australia and overseas members
visit here from time to time for illegal purposes.
The power of individuals in these Australian Triad groups seems
to be based on accumulated wealth, connections or demonstrated
capacity for criminal enterprise rather than on traditional Triad
power bases. Many of these people move with comparative ease between
Australia, Hong Kong and elsewhere in South East Asia. note#24
4.12 In 1988, Mr Peter Lamb, at the time an AFP Assistant Commissioner,
said that there were 'between three and ten' triad societies then
operating in Australia. note#25 Media reports
in 1988 claimed that Australian triad societies had perhaps 2,000
members. note#26 A 1989 report claimed that
the 14K triad 'is well organised and well entrenched in Sydney,
with offshoots in Melbourne'. note#27 In
June 1991 a former NCA officer, Mr Carmel Chow, said: 'We are
looking at maybe half a dozen triad groups in Sydney. We are talking
about the Sun Yee On, the 14K, the Wo Yee Tong, the Big Circle.
So really, we have half a dozen gangs now operating in Sydney.'
note#28
4.13 The buyer of a 1988 importation into Sydney of 31 kg of heroin
was (John) Chai Nam Yung, who was sentenced in March 1991 to 24
years' imprisonment for his part in the deal. He was described
as the head of the Australian branch of the Wo Yee Tong triad,
as well as being the owner of an illegal Sydney gambling club.
note#29 A media follow-up story on the case
said that 'Police sources here estimate that no more than half-a-dozen
of these triad cells are operating in Australia, with an estimated
membership of between 2000 and 3000' and that 'the majority of
triad activity is centred on Sydney'. note#30
A 1992 internal report by the Asian division of the Victoria Police
reportedly stated that there were known to be triads based in
Melbourne and referred to members from triad groups such as the
14K, Sun Yee On, Wo Yee Tong and Wo Shing Wo. note#31
4.14 A 1992 United States report stated that the Sun Yee On triad
has 'a presence' in several countries including Australia, the
Wo Hop To triad 'has been tied to criminal activity' in Australia,
and the Big Circle Gang 'has gained a foothold' in Australia.
note#32 More recent reports from United
States sources state that the 14K triad group and the Sun Yee
On triad have a foothold in Australia. note#33
In September 1994, a member of the Victoria Police Asian crime
squad told a court that the Sun Yee On triad had become more active
in Melbourne in the previous year. note#34
4.15 The February 1994 Report of the Review of Commonwealth
Law Enforcement Arrangements stated (para. 4.49):
Within Australia, it is apparent that several Triad societies
do exist. As in Hong Kong, they provide a local pool of contacts
for criminal ventures. Moreover, Australian residents who were
Triad members in Hong Kong or other foreign countries have immediate
access to a range of colleagues overseas who may be prepared to
assist with criminal activities. There have been claims that certain
Triad groups in Australia have operated as organisations when
establishing gambling and protection rackets, but it is also possible
that the criminals concerned were using a Triad's name for their
own benefit and were acting outside the organisation.
4.16 As noted in paragraph 2.8 above, as long as people believe
in the existence of powerful triad groups, they will be reluctant
to resist the demands of those claiming to be triad members, or
to inform police of their activities. This provides an incentive
for ethnic-Chinese criminals to claim triad membership, however
spurious the claim may be or however powerless and unorganised
the triad in question may really be. note#35
Thus claims by criminals to be triad members cannot be taken at
face value. Equally, assertions that criminal triads exist in
Australia as powerful, well-organised, functioning entities must
be treated sceptically insofar as the assertions are based on
statements from criminals claiming membership in such organisations.
4.17 In 1988, the leaders of a non-criminal triad, the Melbourne-based
Mun Ji Dong (MJD), which began life on the Victorian goldfields
in the middle of the last century, presented their view on possible
criminal triad presence in Australia. note#36
MJD members said law enforcement agencies were on the wrong track
if they were working on the 'Chinese Mafia network' theory that
international criminal Triads had established themselves in Australia
and controlled a comprehensive range of criminal activities.
The MJD said there appeared little evidence that these crime Triads
had established themselves here. A more realistic scenario was
that some Chinese crime syndicates had individuals on the fringes
of the Australian Chinese community, working as contacts for the
importation of illicit narcotics and Asian prostitutes.
However, these people appeared to be low-profile operators without
established criminal Triad power bases. 'I think we'd have spotted
them (established Triad crime gangs) if they were around, but
we haven't seen anything to suggest they've established themselves
here,' said Mr Edmond Louey, a vice-secretary of the MJD.
Mr Louey said there were indications that some petty Asian criminals
claimed 'heavy' Triad affiliations to intimidate victims.
MJD members dismissed suggestions that criminal Triads controlled
illegal gambling: Chinese casinos in Melbourne and Sydney were
operated by individuals.
4.18 There has in recent years apparently been some difference
of opinion among law enforcement agencies in Australia and overseas
about how important triads are to understanding and tackling Chinese
organised criminal activity. The Chairperson of the National Crime
Authority, Mr Tom Sherman told the Committee in 1992:
You get your two schools of thought, really. There is one school
of thought that says the Triads are very important, and there
is another school of thought that seems to be equally well informed
that says that they are not so important. I suspect that, like
all things, the truth lies somewhere in between. note#37
4.19 The National Crime Authority's General Manager, Operations,
Mr Peter Lamb, made a similar point in a media interview in 1993:
note#38
Asked if there was an organised Asian crime system in Australia,
Mr Lamb said: 'I don't think anyone who has worked against organised
crime would deny that.' But Mr Lamb said that was not to say groups
like the Yakuza and Triads had cemented an illegal operation in
Australia. The NCA's intelligence shows that some criminal groups
in Australia have Triad members. But as Mr Lamb said: 'Whether
that equates to the Triads being the real force behind the crime
is another matter.'
4.20 As far as the Committee can discern, there is an increasing
tendency to play down the relevance of triad links. It is not
clear from the material available to the Committee to what extent
this tendency is due to a better understanding of Chinese organised
criminal activity, and to what extent it might reflect a shift
in the way that activity is being conducted. There are suggestions
that the more traditional, triad-oriented, way in which those
criminal activities were once organised is increasingly being
replaced by a more entrepreneurial, ad hoc, and multi-ethnic
approach.
4.21 From a United States' perspective, the 1992 United States
Senate subcommittee report previously referred to stated:
... neither triads, tongs nor gangs appear to be currently involved,
as organizations, in heroin trafficking. While members of these
groups frequently utilize their membership to benefit their heroin
trafficking enterprises, the groups themselves are not typically
part of the heroin smuggling.
... In fact, it is relatively easy for triad members to form criminal
associations with members of other triads or with outsiders. note#39
4.22 An overview of the south-east Asian heroin trade was given
to that subcommittee by a witness from the Central Intelligence
Agency. He also stressed the fragmented, ad hoc organisation
that was involved.
The main point is that Southeast Asian heroin trade is highly
segmented with many independent organizations conspiring to supply
the United States and other consuming countries. As heroin moves
through the trafficking chain, control of the shipment is transferred
several times:
In the initial phase, producers and refiners in Burma, Thailand
and Laos obtain raw opium from farmers and refine it into heroin.
Some three-quarters of the region's heroin refining capacity is
concentrated just inside Burma.
In the second stage, international brokers in the region arrange
the sale, consolidation and movement of large heroin shipments
from refineries in Burma through Thailand to transshipment points
elsewhere in Asia. note#40
Next, wholesale buyers, in places like Hong Kong and Singapore,
purchase heroin from the brokers and move shipments to the United
States for resale. The buyers are frequently connected with Chinese
or other international organized crime groups.
Finally, retail distribution networks in the United States and
Western Europe sell the product on the streets. They often have
business connections with the Asian organized crime groups who
dominate the wholesale business.
We believe that each heroin shipment has unique features. Processing,
financing and transport operations are tailored according to the
resources and requirements of the producers and the wholesale
buyers. A single heroin shipment may involve multiple transactions
between different brokers. note#41
4.23 A 1991 internal review of the NCA's Chinese organised crime
reference (Iliad) stated:
Investigations under the Iliad Reference have, however, provided
significant collateral for the proposition that Triad organisations
in Australia are not central to the heroin trade, but are one
element of the Chinese criminal environment in which criminal
entrepreneurs undertake a variety of activities, including heroin
importation. note#42
4.24 The Australian Bureau of Criminal Intelligence provided a
'national strategic assessment' in May 1992 called Chinese
Organised Crime in Australia. The NCA informed the Committee
that:
The ABCI Report considered a range of criminal activities including
heroin importation and distribution, prostitution, illegal gambling,
violence and money laundering. It also discussed Triad activities
and questioned the importance of Triads to an understanding of
COC [Chinese Organised Crime] activities in Australia. note#43
4.25 A 1993 paper by two Australian criminologists argued: 'Our
ethnically Chinese criminals are just ethnic Chinese criminals;
they can be organised in the corporate or enterprise sense but
Triad membership or otherwise appears something of an irrelevance'.
note#44 Another criminologist, Ian Dobinson,
offered a similar view of the role of the triads in ethnic-Chinese
organised heroin trafficking. He noted that '...law enforcement
in Hong Kong appears to hold the view that small groups are involved
and that there are no significant triad links'. note#45
He also argued that:
This is not to suggest that Chinese heroin groups are not 'organized'.
Rather, it is to argue that they are not organized in the sense
of large hierarchical syndicates inexorably linked to various
triads. The significance of these groups in relation to their
contribution to heroin availability cannot be denied, but Chinese
involvement may be simply a reflection of a criminal counterpart
to the legitimate economic dominance of ethnic Chinese in Southeast
Asia. note#46
4.26 The prevalent view, therefore, appears to the Committee to
be that whatever criminal triads exist in Australia do not operate
as branches that are subject to control from some overseas headquarters.
Indeed, it may be overstating things to regard them as enduring
entities at all. In recent years in Australia, loosely-organised,
syndicates appear to have been the predominant form in which Chinese
organised crime has manifested itself. Some syndicate members
may belong to a particular triad, others may belong to different
triads, and some syndicate members may not have any triad connections.
4.27 The impetus for engaging in a particular criminal activity
seems to come from the individuals rather than a triad. Syndicates
form for particular purposes in very flexible ways and may dissolve
once the immediate purpose, such as a major heroin importation,
has been achieved. Alternatively they may re-form with altered
membership for another purpose. Individuals may claim to be members
of one triad at one time, and a different triad on a later occasion.
The strength of a particular triad may be perceived to increase
as particular successful criminals use it to facilitate their
activities, and may rapidly decline if these criminals are arrested,
retire or shift to another triad. In other words, this view suggests
that Australian triads have little enduring strength, continuity
of power, or inherent organisation.
Approach of the Law Enforcement Review Report
4.28 In describing the role of Chinese in 'major and organised
crime in Australia', the February 1994 Report of the Review
of Commonwealth Law Enforcement Arrangements, focused on the
triads, note#47 although it did note that
not all organised criminal activity undertaken by people from
Chinese backgrounds could be attributed to the triad societies.
note#48 In listing the criminal groups and
activities upon which it thought the National Crime Authority
should focus, the Review Report listed 'Chinese Triad Societies'
rather than using an expression such as 'Chinese organised crime
groups'. note#49
4.29 Too much, perhaps, should not be read into the expression
used. Nonetheless, the Committee found this approach by the Review
somewhat puzzling, given the preponderant view (set out above)
that concentration on triad societies and membership in them is
of only limited value in understand and tackling ethnic-Chinese
organised criminal activity. It is interesting to contrast the
Review's approach with an April 1994 statement by the United States
Federal Bureau of Investigation setting out the main international
organised crime/drug enterprises that it regards as a major threat
to United States society. On Asian organised crime, the statement
does not refer to triad societies at all, but defines the groups
as follows:
Asian Criminal Enterprises - the groups which pose the greatest
threats are:
- Chinese criminal enterprises, such as criminally-influenced
Tongs and their affiliated street gangs, which control illegal
gambling, loansharking, and extortion activities in many Asian
communities.
- Multi-ethnic Asian drug trafficking groups which smuggle Southeast·Asian
heroin into the United States.
- Independent Asian gangs with international, national, or regional
influence, including violent Chinese and Vietnamese gangs that
are transient in nature. note#50
Geographic
Spread within Australia
4.30 Justice Stewart told the Committee in 1988 that the NCA had
not been able, due to lack of resources, to look at Chinese organised
crime in any depth outside Sydney. However, it had evidence which
strongly supported the conclusion that Chinese organised crime
was just as entrenched in Melbourne as it was in Sydney, and that
there was a strong Western Australian connection too. He suggested
that wherever there was a Chinese community there would be some
organised extortion. note#51
4.31 The South Australian Police Commissioner, Mr David Hunt,
said in September 1994 that there was no direct evidence of triad
activity in South Australia, although the number of Chinese prostitutes
in Chinese-owned massage parlours had increased. note#52
4.32 In relation to the geographical scope of drug trafficking,
an intelligence assessment in 1991 stated that:
Intelligence reports suggest strongly that, for most consignments
of heroin, Sydney is the main destination point, with importation
taking place either in Sydney itself or, on occasion, in other
gateway airports for subsequent movement within the domestic transportation
system across the country to Sydney. Border interdiction results
from law enforcement operations show, likewise, a higher level
of detections in Sydney than at any other port in Australia. note#53
4.33 Of the 33.667 kg of heroin seized at the Customs barrier
in 1993, just over half (17.576 kg) was seized in NSW. note#54
Data for total seizures (ie. at the barrier and elsewhere in Australia)
for 1993 also show the dominance of Sydney: of the 115.8 kg of
heroin seized, 90 kg was seized in New South Wales. note#55
To the extent that ethnic-Chinese groups dominate the import of
heroin, this gives some measure of the distribution of their activities,
although the figures fluctuate from year to year. Thus a single
seizure of 71.6 kg in Sydney in 1993 accounts for nearly 80 per
cent of the total seized in NSW during 1993. A single importation
of over 120 kg that was seized in Darwin in September 1994 will
similarly have a distorting effect on the 1994 figures.
4.34 In addition, point of seizure is, of course, not necessarily
a reliable guide to where the importer is based. In September
1994 an operation involving the AFP and other agencies resulted
in the seizure of 37.5 kg of heroin in Perth and another 11 kg
in Adelaide. note#56 According to media
reports, police believed the heroin originated in the Golden Triangle.
It had been imported into Australia on a bulk-carrier through
the port of Geraldton by Chinese seamen recruited in southern
China and Hong Kong. Police thought that the entire shipment was
destined for Sydney and was organised by a Sydney-based group
with links to Hong Kong and Canada. Those arrested included Chinese
nationals resident in Australia, Hong Kong nationals and Chinese-Canadians.
Cooperation with Other Criminal Groups
4.35 The observation was made above (para. 4.7) that much of the
heroin importation by Chinese criminal groups is directed towards
supplying other, non-Chinese, groups for their own distribution
networks. As an illustration, a former Queensland Criminal Justice
Commission officer was reported in February 1994 as having said
that Chinese heroin importers were the source for an ethnic-Romanian
drug distribution network on Australia's eastern seaboard. note#57
4.36 The Western Australia Police Deputy Commissioner, Mr Les
Ayton, was recently reported as saying: 'An emerging threat is
the cooperation that is developing between Chinese and Italian
organised groups (that are) complementing each other with their
knowledge of importation practices and distribution networks'.
note#58 However, the Committee is not aware
of other evidence for the emergence of this threat.
4.37 The extent of organised criminal connections between Vietnamese,
Vietnamese-born Chinese (Sino-Vietnamese) and other Chinese is
unclear. In 1988, Justice Stewart told the Committee that there
was some evidence that Chinese organised criminals were using
ethnic-Vietnamese as 'foot-soldiers'. note#59
There is more recent evidence that suggests that the Vietnamese
are no longer so ready to adopt subordinate roles.
4.38 Deputy Commissioner Ayton recently
said: 'Vietnamese criminals, initially, were used by Chinese organised
crime for use as couriers and as part of the distribution network.
There is good intelligence and anecdotal evidence that the Vietnamese
(criminals) are now emerging as major importers of heroin.' note#60
Mr Ayton also said that Vietnamese criminals were acting in concert
with Chinese criminals in serious and widespread credit card fraud.
He said counterfeit credit cards were being manufactured in Hong
Kong and were readily available in Australia to organised crime
groups.
4.39 The Australian Federal Police Annual Report 1992-93,
p. 57 noted: 'A national intelligence project into Chinese organised
crime continued. Research in Sydney has been widened to focus
on the Vietnamese and Sino-Vietnamese gangs engaged in heroin
trafficking and money laundering.' The NCA's most recent annual
report states that NCA investigations in Melbourne had 'identified
a Sino-Vietnamese group involved in heroin importation, distribution
and other offences'. note#61
4.40 A January 1994 media report referred to the activities of
the Criminal Justice Commission and stated:
It is suspected that members of the Vietnamese community may have
criminal links to members of the Chinese community in Brisbane.
Because of the increasingly noticeable criminal activities of
the ethnic Chinese from Vietnam as well as native Vietnamese,
a CJC intelligence project has been launched to embrace total
Asian crime in Queensland ... note#62
4.41 On the other hand, another recent media report cited an unnamed
'senior Perth academic' as saying that the Vietnamese and Chinese
had been fighting for dominance in the Perth heroin market. note#63
The report said in the previous two years the wholesale price
of heroin in Perth had dropped from $15,000 an ounce to about
$8,000 while the strength (purity) on offer had doubled. Police
considered it was plausible to attribute this to the effect of
the competition.
4.42 Law enforcement agencies have a legitimate concern that their
task will be made more difficult if different groups of organised
criminals work together - if for example, the triads form alliances
with Italian or Vietnamese organised crime groups. The inconclusive
reports that this may be occurring are, however, open to more
than one interpretation. They may be no more than a reflection
of the view set out above - that much that might be attributed
to triad activity is more accurately seen as the work of temporary
syndicates and networking by individuals. In the context of this
view, alliances with non-triad groups are just further evidence
of the opportunistic and ad hoc nature of those who use
the triad label.
Hong Kong's Reversion to Chinese Rule in 1997
4.43 Some years ago concerns began to be expressed that the return
of Hong Kong to the control of the People's Republic of China
in 1997 would lead to an exodus of triad members. It was feared
that those leaving would try to establish themselves in criminal
activities in countries such as Australia, note#64
although this view was not unanimous. note#65
However, the February 1994 Report of the Review of Commonwealth
Law Enforcement Arrangements (para. 4.50) presented a different
view:
While there had been concern that there would be an exodus of
Triad members from Hong Kong to Australia in the lead up to 1997,
it now seems probable that the Triads have already established
themselves in southern China and that they are mostly unconcerned
about the return to PRC rule.
4.44 It seems that the economic boom in China, especially the
part nearest Hong Kong, combined with greater economic freedom
in China, have presented attractive opportunities for Hong Kong-based
organised criminals. There are media reports of increased triad
activity in China, especially in the coastal areas, and in November
1994 China's Justice Minister said that the re-emergence of the
triads in China was posing a serious threat to its social stability.
note#66
(continue to start of section 5)
(return to table of contents)
ENDNOTES
4. See for example United States Senate, Subcommittee on Terrorism,
Narcotics and International Operations of the Committee on Foreign
Relations, Recent Developments in Transnational Crime Affecting
U.S. Law Enforcement and Foreign Policy, Hearings, 21 April
1994 (US Gov. Printing Office, Washington, DC, 1994), p. 123 where
Bill Olson, a former Deputy Assistant Secretary of State for Narcotics
and a Fellow at the National Strategy Centre set out what he regarded
as five major characteristics of international organised crime:
... Fifth, such groups are generally ethnically based. This is
a particular advantage when groups begin to operate beyond their
original homes or in multi-ethnic societies. By relying on a closed
community of people who speak the same language and have cultural
clues about identity that outsiders cannot penetrate easily, such
groups developed added protection against penetration by law enforcement.
5. Australian Federal Police, Annual Report 1992-93, p.
58. See also "Police follow drug trail to Russia", Canberra
Times, 24 July 1993, p. 16.
6. See Review of Commonwealth Law Enforcement Arrangements,
February 1994, AGPS, Canberra, paras. 4.56 - 4.59 for a brief
description. See also "Australia the main target for Lebanese
drug exports", Australian, 29 March 1994 (reporting
claim by Lebanese Interior Ministry referring to cannabis and
cocaine, as well as heroin).
7. See for example the evidence of the United States Assistant
Attorney General, Criminal Division, Robert S. Mueller, before
the US Senate, Permanent Subcommittee on Investigations of the
Committee on Governmental Affairs, Asian Organized Crime,
Hearing, 6 November 1991 (US Gov. Printing Office, Washington,
DC, 1992), p. 167:
Let me speak for a moment about the Asian organized crime problem
in this country. It, in essence, consists of 4 major groups: first,
Chinese organized crime, including triads, criminally-influenced
tongs, and street gangs; second, the Japanese criminal society
known as the Boryokudan, or "Yakuza"; third, Vietnamese
organized crime, which largely consists of street gangs; and,
lastly, Korean gangs, some of which are closely associated with
the Boryokudan.
8. For two recent contributions see: P. Dickie and P. Wilson,
"Defining Organised Crime: An Operational Perspective",
Current Issues in Criminal Justice, vol. 4, no. 3, March
1993, p. 215; and D. Greaves and S. Pinto, "Redefining Organised
Crime: Commentary on a Recent Paper by Phil Dickie and Paul Wilson",
Current Issues in Criminal Justice, vol. 5, no. 2, November
1993, p. 218.
9. National Crime Authority, Corporate Plan July 1993 - June
1996, AGPS, Canberra, 1993, p. 22.
10. G. Wardlaw, "Conceptual Frameworks of Organised Crime
Useful Tools or Academic Irrelevancies?", paper delivered
at the Australian Institute of Criminology's Organised Crime
Conference, Canberra, 5-7 September 1989, p. 4.
11. See for example, para. 4.38 below and "Triads strike
on gold cards", Sunday Mail (Brisbane), 23 October
1994, p. 34. See also United States Senate, Permanent Subcommittee
on Investigations of the Committee on Governmental Affairs, The
New International Criminal and Asian Organized Crime, Report,
December 1992 (US Gov. Printing Office, Washington, DC, 1993),
pp. 44-45 (footnote omitted):
Losses resulting from counterfeit credit card activity have risen
dramatically over the past few years. Technological innovations
during the mid-1980's managed to stem a previous spurt of counterfeiting,
but the criminal sophistication of Chinese criminal groups based
in Hong Kong has led to a notable resurgence of credit card counterfeiting
in the past few years. Hong Kong-based counterfeiting rings were
responsible for as much as 40 percent of the total worldwide counterfeit
credit card losses of about $200 million in 1991. While much of
the actual counterfeiting is done in such locales as Hong Kong,
Thailand, Singapore, and Malaysia, the counterfeit cards are now
being used in Europe, Australia, and North America as well.
12. See para. 5.12 below in the context of discussion of Vietnamese
street gangs.
13. G. Wardlaw, D. McDowell and J. Schmidt, Australia's Illegal
Drug Problem: A Strategic Intelligence Assessment, (A paper
prepared by The Criminal Environment Assessment Unit), April 1991,
Attorney-General's Department, Canberra, para. 5.11.
14. Australian Federal Police, "Australia's Relations with
Thailand: An AFP Perspective", September 1994 (a submission
from the AFP to the Foreign Affairs Sub-Committee of the Joint
Parliamentary Committee on Foreign Affairs, Defence and Trade),
p. 4.
15. "Chinese Triads behind '86 pc of heroin seized'",
Australian, 13 July 1988, p. 3. Note that the headline
uses the figure 86% while the body of the story uses 96%.
16. G. Wardlaw, D. McDowell and J. Schmidt, Australia's Illegal
Drug Problem: A Strategic Intelligence Assessment, (A paper
prepared by The Criminal Environment Assessment Unit), April 1991,
Attorney-General's Department, Canberra, para. 5.35.
17. "Asian crime gangs lead heroin imports", The
Weekend Australian, 20-21 November 1993, p. 3
18. New South Wales, Report of the New South Wales Crime Commission
for the year ended 30 June 1993, p. 16.
19. Australian Federal Police, "Australia's Relations with
Thailand: An AFP Perspective", September 1994 (a submission
from the AFP to the Foreign Affairs Sub-Committee of the Joint
Parliamentary Committee on Foreign Affairs, Defence and Trade),
p. 4.
20. New South Wales, Report of the Crime Commission for the
year ended 30 June 1992, para. 2.76.
21. G. Wardlaw, D. McDowell and J. Schmidt, Australia's Illegal
Drug Problem: A Strategic Intelligence Assessment, (A paper
prepared by The Criminal Environment Assessment Unit), April 1991,
Attorney-General's Department, Canberra, para. 5.40.
22. United States Senate, Permanent Subcommittee on Investigations
of the Committee on Governmental Affairs, The New International
Criminal and Asian Organized Crime, Report, December 1992
(US Gov. Printing Office, Washington, DC, 1993), pp. 3-6, 10-11.
23. United States Senate, Subcommittee on Terrorism, Narcotics
and International Operations of the Committee on Foreign Relations,
Recent Developments in Transnational Crime Affecting U.S. Law
Enforcement and Foreign Policy, Hearings, 20 April 1994 (US
Gov. Printing Office, Washington, DC, 1994), p. 7.
24. Text of a public statement, 22 June 1988, reproduced in the
NCA's Annual Report 1987-88, p. 66.
25. ABC TV, 7.30 Report, 24 October 1988 (transcript, p.
5).
26. For example, see "Chinese Triads behind '86 pc of heroin
seized'", Australian, 13 July 1988, p. 3; "The
story of a Chinese mafia", Melbourne Herald, 23 August
1988, p. 13; "The day of the Triads: Hong Kong's gangs move
in on Australia", Newsweek, 8 November 1988.
27. "Big Circle Gang a maverick group", The Age,
13 May 1989, p. 4.
28. Channel Nine, Sixty Minutes, 23 June 1991 (transcript,
p. 2).
29. "How Australian cops snared the triad's diplomat couriers",
Sydney Morning Herald, 11 May 1991, p. 45; "The Asian
Connection" The Bulletin, 2 April 1991, p. 86.
30. "The Asian Connection" The Bulletin, 2 April
1991, pp. 86, 87.
31. "Police report predicts rise in Asian crime", The
Age, 10 August 1992, p. 1.
32. United States Senate, Permanent Subcommittee on Investigations
of the Committee on Governmental Affairs, The New International
Criminal and Asian Organized Crime, Report, December 1992
(US Gov. Printing Office, Washington, DC, 1993), pp. 9, 10, 11.
33. "Triads linked to Australia", West Australian,
7 September 1994, p. 7 citing "FBI documents".
34. "Police tell of triad push", Herald Sun,
14 September 1994, p. 10.
35. See for example R.J. Kelly, Ko-Lin Chin and J.A. Fagan, "The
dragon breathes fire: Chinese organized crime in New York City",
Crime, Law and Social Change, vol. 19, 1993, p. 258: "By
emulating Triad initiation rites and internalizing Triad norms
and values, they [gang members] can claim a certain traditional
legitimacy within their communities. This folkloric benediction
elevates them above the kind of simple street thug and enables
them to instill a level of fear that no other ethnic gangs can
match."
36. "Cut out the theatrics, 'good' Triad tells police",
Australian, 19 November 1988, p. 4.
37. Parliamentary Joint Committee on the National Crime Authority,
in camera Hansard, 27 November 1992, p. 87.
38. "Terror as Asian gangs rule the streets", Sun-Herald,
30 May 1993, pp. 12-13.
39. United States Senate, Permanent Subcommittee on Investigations
of the Committee on Governmental Affairs, The New International
Criminal and Asian Organized Crime, Report, December 1992
(US Gov. Printing Office, Washington, DC, 1993), p. 29.
40. More recent reports suggest that there has been a significant
shift in the trafficking route, with only about half the heroin
traffic passing through Thailand, with a significant proportion
now going through China: "Pusher With A Cause", Far
Eastern Economic Review, 20 January 1994, p. 26.
41. United States Senate, Permanent Subcommittee on Investigations
of the Committee on Governmental Affairs, Asian Organized Crime:
The New International Criminal, Hearing, 4 August 1992 (US
Gov. Printing Office, Washington, DC, 1992), pp. 67-68 (Evidence
of D. Cohen, Associate Deputy Director for Intelligence, Central
Intelligence Agency).
42. NCA, Shamrock Report, April 1991 quoted in a paper
by the NCA Intelligence Branch, Progress Report to the Parliamentary
Joint Committee on the National Crime Authority on the Chinese
Organised Crime National Initiative, December 1992, para.
11.
43. ibid., para. 16.
44. P. Dickie and P. Wilson, "Defining Organised Crime: An
Operational Perspective", Current Issues in Criminal Justice,
vol. 4, no. 3, March 1993, p. 222.
45. I. Dobinson, "Pinning a Tail on the Dragon: The Chinese
and the International Heroin Trade", Crime & Delinquency,
vol. 39, no. 3, July 1993, p. 374.
46. ibid.
47. paras. 4.48 to 4.50.
48. para. 4.37.
49. para. 7.50(4).
50. United States Senate, Subcommittee on Terrorism, Narcotics
and International Operations of the Committee on Foreign Relations,
Recent Developments in Transnational Crime Affecting U.S. Law
Enforcement and Foreign Relations, Hearings, 20 April 1994
(US Gov. Printing Office, Washington, DC, 1994), p. 81 (prepared
statement, incorporated in the transcript, of James Frier, Deputy
Assistant Director, Criminal Division, FBI). The statement also
lists yakuza gangs and eurasian gangs (ie. from the former Soviet
Union). Later in the statement (p. 83) the term "multi-ethnic
Asian drug trafficking organizations" is expanded:
These groups are often comprised of Chinese, Thai and other Asian
criminals, who frequently use their current or past membership
in Triads, criminally-influenced Tongs, or gangs to facilitate
their activities. These loosely organized groups are global in
nature and scope, and are involved in the production, transportation,
distribution, and money laundering aspects of international heroin
trafficking.
51. Parliamentary Joint Committee on the National Crime Authority,
in camera Hansard, 3 June 1988, p. 578.
52. "Fear of gang ties to prostitution", Advertiser,
22 September 1994, p. 9.
53. G. Wardlaw, D. McDowell and J. Schmidt, Australia's Illegal
Drug Problem: A Strategic Intelligence Assessment, (A paper
prepared by The Criminal Environment Assessment Unit), April 1991,
Attorney-General's Department, Canberra, para. 5.27.
54. See Australian Bureau of Criminal Intelligence, Australian
Drug Intelligence Assessment 1993, p. 35.
55. ibid., p. 38.
56. See "Arrests, drug seizure have hurt gang: police",
West Australian, 24 September 1994, p. 31; "WA gateway
for heroin", Sunday Times, 25 September 1994, pp.
1, 2; and "Massive hauls of high-grade heroin", Sunday
Mail (Brisbane), 25 September 1994, pp. 12-13. A report subsequent
to completion of this discussion paper indicated that the heroin
was originally destined for Canada, and a last-minute change of
destination by the ship resulted in the heroin coming to Australia:
"Heroin trio face life in jail", West Australian,
10 December 1994, p. 6.
57. "Chinese import drug, Romanians control it", Sunday
Mail (Brisbane), 13 February 1994, p. 13.
58. "Triads linked to Australia", West Australian,
7 September 1994, p. 4.
59. Parliamentary Joint Committee on the National Crime Authority,
in camera Hansard, 3 June 1988, p. 578.
60. "Triads linked to Australia", West Australian,
7 September 1994, p. 4.
61. NCA, Annual Report 1993-94, p. 30.
62. "CJC probes ethnic links to cocaine, heroin", The
Weekend Australian, 1-2 January 1994, p. 3.
63. "Cheap Asian heroin blamed for deaths", West
Australian, 8 September 1994, p. 10.
64. See for example, NCA, Annual Report 1987-88, p. 66
(report of 22 June 1988 public statement by the NCA's Chairperson,
Justice D. Stewart); M. Booth, The Triads, Grafton Books,
London, 1990, pp. 137-38, 148-49; "Police report predicts
rise in Asian crime", The Age, 10 August 1992, p.
1.
65. See for example, United States Senate, Committee on the Judiciary
and the Caucus on International Narcotics Control, U.S. International
Drug Policy - Asian Gangs, Heroin and the Drug Trade, Joint
Hearing, 21 August 1990, p. 16 (statement of R.M. Bryant, FBI):
One theory puts forth the idea that the triads will basically
leave Hong Kong and come to other countries such as the United
States, Canada, Australia, whatever. The second theory held by
the Royal Hong Kong Police is that they will remain in Hong Kong
and exist under the People's Republic of China.
66. "Crackdown urged on rising organised crime", South
China Morning Post 29 November 1994, p. 16. See also "Criminals
know no boundaries", Sydney Morning Herald, 15 September
1994, p. 15:
Senior criminal intelligence officers in the Hong Kong police
believe that the biggest of the Triad gangs, the Sun Yee On, which
is thought to have more than 30,000 members in the British colony,
now has a stranglehold on the government of Guangdong Province
[in mainland China] which boasts one of the world's fastest growing
economies.
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