ASIAN ORGANISED CRIME IN AUSTRALIA

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

Triad Societies and Chinese Organised Crime

INTRODUCTION






The relatively small Chinese community in South Africa has a history that is intertwined with the economic and political development of the country. It is a law-abiding community that has maintained a low profile throughout the country’s changing political fortunes. It does not constitute a prominent party-political constituency and was therefore left to advance economically through its own hard work and resources without the benefit of state assistance or the involvement of political benefactors.



The Chinese criminal elements who caught the attention of the police during the 1970s were mainly those active in the shark fin trade from fishing fleets that used South African harbours. In what is now Gauteng, some individuals were involved in the smuggling of products from endangered species, such as rhino horns, and with illegal gambling.



Police investigations into such offences were dealt with in the ordinary course of business by allocating a docket to a detective. The conventional approach to investigating crime at the time was to focus on individual suspects. The concept of organised crime had not yet been introduced into detective training nor was there an appreciation by police management that a different investigative approach was necessary to deal with crimes involving organised criminal groups.



By 1990, it became clear to police management that organised criminal groups were a major contributing factor to the rising crime rate. At a police conference held in April 1991, a serious attempt was made to assess national crime patterns and to develop strategies to combat crime more effectively.1 One of the outcomes was the establishment of a national Organised Crime Intelligence Unit. For the first time, crime intelligence was to become central to investigations into organised crime. Organised groups as a whole and the manner in which they operated were to be investigated in addition to individual group members suspected of crimes. This constituted a move away from the conventional reactive approach towards a more proactive and holistic investigative approach. Organised crime units were subsequently established in all the provinces.



Detectives in the Western Cape had been aware since the early 1980s that Chinese criminal groups and triad societies were more involved in criminal activities in South Africa than previously thought, and that their activities were expanding. When the Western Cape provincial organised crime unit was established, it immediately prioritised the activities of these groups. It was already well-known that large quantities of dried shark fins were being exported by Chinese-linked groups from Cape Town via Johannesburg to Hong Kong and other destinations in South East Asia. Trading in shark fins did not constitute a criminal offence under South African law, provided that the sharks were not caught in South African territorial waters. Because Chinese fishing fleets operating in the rich waters of the South Atlantic Ocean were not properly monitored, South African authorities had difficulty in countering their claims that the shark fins they landed in Cape Town were caught outside territorial waters.



Further police investigations during 1992 and 1993 confirmed for the first time that individuals linked to at least three different triad societies were actively involved and that their illegal activities were much broader than the trade in shark fins. With the assistance of the Hong Kong Police, with whom informal contacts had been established, police established that individuals operating from Cape Town were members of the Hong Kong-based 14K triad, and the Wo Shing Wo triad. The Taiwanese-linked criminal group active in Cape Town was referred to as the ‘Table Mountain Gang’ at that stage. Police soon discovered that members of these triad societies were also operating in the Johannesburg/ Pretoria area, as well as in every harbour city in South Africa.



Police investigations also revealed that the illicit trade in abalone constituted a major component of the business of Chinese organised criminal groups. According to detectives who were monitoring their activities, at least 30 to 40 tons of dried abalone had been exported illegally from South Africa by 1993. Abalone, a delicacy and an aphrodisiac in China, could only be legally harvested off the shores of the South African coast by those who had obtained a quota or a permit to do so. The large quantities smuggled to Hong Kong, Singapore and elsewhere were harvested illegally, usually with the assistance of South African criminal organisations. In Hong Kong, where the possession or sale of abalone is not unlawful, astronomical prices are paid for South African abalone.



During 1993, police discovered for the first time abalone-canning factories operated by members of Chinese triads. They were located, usually in large homes, in Atlantis (Western Cape), as well as in Durban and Johannesburg. Clear links were established between Cape Town-based triad members and Chinese criminal organisations operating from Johannesburg, Pretoria and Durban. Significant improvements were made in gathering information on Chinese criminal organisations during the period from 1991 to 1995. Profiles of approximately 20 leading Chinese suspects, a number of whom were members of the above triad societies, were compiled and their networks were scrutinised. However, the progress made during those years was not sustained.



THE IMPACT OF POLICE TRANSFORMATION





The transformation and restructuring of the former South African Police that followed the first democratic election contributed to the disruption of focused investigations into Chinese criminal organisations. The 11 autonomous police forces of pre-1994 South Africa had to be amalgamated into one new South African Police Service (SAPS). White police officers were anxious about their future and their black counterparts had high expectations of rapid promotion. Provincial police structures were established in the nine new provinces that came into being in 1994. Police were being exhorted to adopt a completely different proactive, accessible style of policing that was in line with the new democratic Constitution. The resultant uncertainty and anxiety among many members of the police, combined with the reluctance of some to accept the new political dispensation, led to morale problems and a lack of focus. There was a widespread ‘wait-and-see’ attitude among police members. During 1995, the specific attention focused on Chinese criminal groups waned considerably.



ORGANISED CRIME AS A POLICE PRIORITY





By 1997, the situation had changed. With many of the more complex restructuring tasks concluded, police management gave renewed attention to organised crime. The Annual Police Plan for the year 1997/1998, submitted to parliament by the national commissioner of the SAPS, listed the investigation of criminal organisations as the second highest policing priority for the year.2 Government embarked on initiatives that aimed at strengthening both legislative and operational measures against organised crime. By 1999, the new Prevention of Organised Crime Act was in place and specialised investigation units, including the élite Scorpions unit, were established to combat organised crime in a more professional manner. State capacity and commitment to combat organised crime had made significant advances.3



However, all these steps aimed at bolstering the fight against organised crime, in general, appear to have bypassed Chinese criminal organisations operating in South Africa. Compared with other organised criminal groups such as South African motor vehicle theft syndicates or Nigerian drug-smuggling groups, the Chinese organised groups have not been regarded as a priority target or as constituting a serious threat to South Africa. The SAPS, for example, has not established a permanent desk to focus on the investigation of Chinese organised criminal activities, nor is there any specialised group focusing on the role of triad societies in organised crime in South Africa. One reason for the relatively low priority given by the police to these groups is that their main criminal activities — the illicit harvesting and export of abalone, the importation of counterfeit goods, and the trafficking in illegal immigrants — do not fall within the five priority categories of serious transnational organised crime identified by the SAPS. These categories are theft of motor vehicles, drug-related offences, fraud, motor vehicle-hijacking, and offences relating to illegal weapons and ammunition. However, the recent increased involvement by Chinese groups in drug-trafficking and an increase in the interception of illicit abalone may contribute to a higher media profile for such groups, leading law enforcement authorities to start paying more attention to them.



By 2000, there was still no dedicated police unit in place to monitor and investigate the activities of Chinese criminal organisations. In the Western Cape, the Marine Investigating Unit, a small unit of six police officers, was tasked with monitoring and investigating the illicit harvesting and trading in abalone until it was disbanded and incorporated into the Organised Crime Unit of the Western Cape during 2000. The unit had become aware that Chinese criminal groups were involved in an expanding number of criminal activities including the trafficking in narcotics, prostitution and money-laundering. However, as the Unit had no mandate to investigate offences other than those linked to marine resources such as abalone, this information was not used in wider criminal investigations. The police appear to have accumulated relatively little information about the broad nature and impact of the activities of Chinese criminal groups in South Africa.



A brief reference to the history of triad societies in Hong Kong and China is useful for an understanding of Chinese organised criminal groups in South Africa.4



TRIAD SOCIETIES IN CHINA AND TAIWAN





The secrecy and popular myths surrounding triad societies have a long history. 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.5 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, in fact, had 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 ritualised initiation ceremonies that were meant to instil 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 organised 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 relationship among individual triad members are based on ties between ‘Dia-Los’ (big brothers) and ‘Sai-Los’ (little brothers), where the Sai-Los 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 triad members, triads clearly serve as international networking associations that facilitate such activity. Moreover, monetary profits from the criminal activities of triad members often flow to the top in indirect ways, such as through gifts. A member of the Hong Kong-based 14K triad explained these relationships as follows:6

"I was not required to pay any percentage of profits to the 14K leadership. Triads do not work that way. Triad members do favours 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 organisational 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."

Triad membership is therefore a valuable asset to the new international criminal. It facilitates criminal activities in a manner similar to the way membership in business associations facilitates the activities of a legitimate businessperson.



Prior to Hong Kong being reincorporated into the Peoples’ Republic of China, the police estimated that there were about 50 triad societies in Hong Kong, with about 15 of them being very active. While it is 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.



The National Police Administration in Taiwan recognises 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, with an estimated membership of over 20 000. The second group is the Four Seasons Gang, also known as Sei Hoi, with an estimated membership of over 5 000.



CHINESE CRIMINAL GROUPS IN SOUTH AFRICA





From available information, it appears that, since the mid-1980s, Chinese criminal groups have become well-organised entities, modelled on the triad societies of Hong Kong and China. They are now active in a number of South African cities and have branched out into a range of criminal activities such as various forms of fraud, drug-trafficking, firearm-smuggling, extortion, money-laundering, prostitution, illegal gambling, the smuggling of illegal immigrants, tax evasion, and the large-scale importing of counterfeit goods. The illicit harvesting and exporting of abalone, although still an important component, no longer constitutes the core activity of these groups. Gauteng has become the hub of their activities — far more members of Chinese criminal groups are now active in the Johannesburg/Pretoria area than in Cape Town. They are now also active in all South Africa’s harbour cities and have recently been observed in as small a seaside resort as Port Alfred in the Eastern Cape. They also have a presence in Bloemfontein and Bronkhorstspruit and in most of South Africa’s neighbouring states.



At present, the SAPS are aware of seven major Chinese organised criminal groups. All of them have members in Cape Town and Johannesburg. Four of them, mainly Cantonese-speaking, originate from and have links with Hong Kong and China, and the other three, mainly Mandarin-speaking, originate from and have links with Taiwan. The four groups that model themselves on the triad societies of Hong Kong and China are, in the order of their prominence in South Africa:



the Wo Shing Wo group;

the San Yee On group;

the 14K-Hau group; and

the 14K-Ngai group.

These groups act independently of Hong Kong and from each other in South Africa. However, this does not exclude occasional instances of co-operation when the utilisation of specific expertise or resources is mutually beneficial to the different groups. The positive identification of some members of these four groups as triad society members was possible as a result of close police co-operation between Hong Kong and South Africa. The same cannot be said about police co-operation with Taiwan. Members of the SAPS have complained that, due to the reluctance of the Taiwanese police to assist South African authorities with information about individual suspects and their criminal activities, relatively little is known about the three groups with links to Taiwan.



The Taiwan-linked groups appear to be less structured and sophisticated than those with links to Hong Kong. Some of them were linked to the Table Mountain Gang in the past, but it appears that the use of this particular name has now fallen away. One of the three groups — consisting of approximately 10 members — still concentrates on shark fins. It is a loosely knit group that has no particular name and that has managed to retain the shark fin trade monopoly. The second Taiwan-linked group — consisting of between 10 and 15 members — is mainly active in illegal gambling and prostitution. It has been involved in bringing holidaymakers from Taiwan to South Africa and is also linked to the exporting of illicit firearms from South Africa to the East. The third group is also loosely knit and concentrates mainly on the illegal abalone trade. Because there is insufficient information to confirm that the three Taiwan-linked groups are linked to triad societies, the discussion in the remaining part of this paper will relate mainly to the four Hong Kong and triad-linked Chinese criminal groups.



The particulars of the structures within each of the above four Hong Kong-linked groups in South Africa are not known. In general, however, they appear to base their structure on the more modern triad structures in Hong Kong and elsewhere. Although the structures vary from group to group and are more simple than those of the traditional triad societies in China, they retain a hierarchical structure headed by what is often referred to as the ‘chairman’ or the traditional ‘Dragon Head’. He tends to be the most influential office bearer with the largest group of followers within his organisation. Under the chairman, a number of senior office bearers (also referred to as 426s) carry out specific organisational responsibilities. These could be the accountant, the liaison person, or the person who initiates new members. The leader of the group, the chairman, tends to control promotions within the group. Together with his committee of senior office bearers, the chairman supervises internal discipline and attends to and settles internal and external disputes and conflicts. The chairman and the office bearers tend to keep their hands clean and leave the more risky criminal activities to junior members. The junior members, the so-called 49-ers, constitute the third layer within the structure. They are the foot soldiers of the group who have to perform tasks such as the safe transport and storage of illicit abalone and the storage and distribution of narcotics.



Significant use is also made of aspirant members, often referred to as the ‘Blue Lanterns’. They hope to be inducted as members of the criminal group at some stage and participate in high-risk criminal activities in order to prove themselves and to win the favour of senior office bearers. They face the greatest threat of detection and arrest. The aspirant members, members and office bearers of a particular group do not necessarily reside in one centre in South Africa. They operate from various cities such as Johannesburg, Cape Town and Durban. A strict code of conduct, based on a detailed oath of loyalty, provides the necessary cohesion and discipline within a group, irrespective of where members might find themselves. The benefits of being a member of one of the four Chinese criminal groups are high. The financial rewards, increased security and status of membership ensure that the groups have no problems to recruit new members from the growing Chinese community in South Africa or from outside of the country.



METHODS OF OPERATION





Many of the members of the four groups have followed a long and patient route to establish themselves in South Africa. Individuals from China sometimes visit South Africa as tourists in order to scout around and familiarise themselves with the terrain and with possible contacts for legitimate or illicit business opportunities. They then head home to Hong Kong and China and return with sufficient capital for investment in South Africa to obtain a work or residence permit. Upon entry, a portion of the capital is invested in a legitimate business such as a restaurant or import/export company which is then used as a front to enable the newcomer to settle down and slowly build up contacts. Some of the funds brought into the country are then invested in the illicit activities of existing criminal groups within South Africa, thereby gradually enabling the newcomer to become part of their activities.



There are also examples of individual members who were born in South Africa and are South African citizens, who have followed the arduous route of slowly building up capital from small beginnings through illegal and legal activities. Many members of the four organised criminal groups are therefore involved in both markets. Legitimate businesses consist of textile factories, nightclubs, retail outlets such as electronics or clothing shops, import/export agencies and restaurants. In Cape Town, for example, there are restaurant owners who are known members of one of the four triad groups. The more successful members own and live in large homes in expensive suburbs.



The expansion of illicit activities often necessitates the establishment of legitimate businesses to facilitate them. Some Chinese-owned import/export companies facilitate not only the legal export of abalone to the East, but also the illicit trade in this commodity. For example, during September 2000, police arrested the alleged leader of a Chinese criminal group for attempting to smuggle 603 kilograms of abalone from Johannesburg International Airport to Hong Kong. The suspect ran a legitimate abalone-exporting business from his warehouse near the airport where the illegal abalone for which he was arrested was recovered. The abalone formed part of a consignment of 14 tons worth more than R10 million that the police recovered over a 12-week period in one operation.7



A conservative estimate by the police puts the illicit export of abalone, a market that is totally dominated by Chinese organised criminal groups, at about 500 tons per annum. At a retail price of about US $65 per kilogram in Hong Kong, the gross income of illicitly exported abalone is therefore approximately US $32.5 million. Although the South African groups that export abalone will have earned only a portion of this amount, it remains a lucrative business. Vast tracts of the South African coastline have been stripped of abalone through illegal poaching. This has prompted the Department of Marine and Coastal Management to reduce the annual quota for legal abalone harvesting from 530 tons in 1998/99 to 327 tons for 2000/2001.8



The growth in the illicit importing of counterfeit goods is also facilitated through companies owned by members of the criminal groups. Although it is not possible to confirm that Chinese organised criminal groups dominate this market, it has become a substantial trade that involves counterfeit watches, clothing, shoes and electronic equipment. Another criminal activity pursued by Chinese criminal groups that has seen a marked increase is drug-trafficking. The San Yee On group focuses more on narcotics than the other three. During 1999, South African law enforcement authorities intercepted two containers containing about 2.9 million mandrax (methaqualone) tablets valued at about US $14.4 million. In both cases, the origin was China and the destination Johannesburg.9 However, Chinese groups in South Africa are not yet dominant in the mandrax trade as there are South African, Indian and Pakistani groups that also traffic in substantial quantities of the drug.



The nature and extent of the above criminal activities provide an indication of the extensive professional expertise that exists within the four triad organisations in South Africa.



THE USE OF VIOLENCE





The strict hierarchy and the code of conduct that applies to membership of the four triad groups are probably the reasons why there appears to be very little intergroup violence. However, ruthless violence is sometimes used to eliminate competitors or to persuade debtors to repay money owed. During the past year, there have been a number of what appears to be contract killings of Chinese businessperson in different cities in South Africa. The police have not yet been able to solve these murders, but it is thought that organised Chinese criminal groups might be behind the deaths. A more recent development has been incidents of kidnapping persons for ransom money. Although only a few cases have been reported, the brazen violence associated with this crime was not typical of Chinese organised crime in past years.



Violence aimed at settling turf battles or at extorting money is perpetrated primarily by members of the respective groups themselves and generally not by contracted ‘hitmen’. Some contract killings have been performed by professionals brought in from China, but this cannot be regarded as a typical feature of the Chinese criminal groups. Access to firearms is not difficult in South Africa. There is a vast illegal market for firearms, primarily as a result of the steady supply from ongoing conflict areas in the region. Many members of the four triad groups have South African citizenship and are engaged in legitimate business activities that also enables them to obtain legal firearms.



CORRUPTION OF STATE OFFICIALS





Corruption plays an important role in facilitating the activities of all organised criminal groups. The Chinese criminal groups are involved with corruption aimed mainly at lower level officials in the Department of Home Affairs in order to facilitate activities such as illegal immigration. Officials from the Department of Customs and Excise have been targeted for the purpose of clearing illicitly imported counterfeit goods, often with forged documents, as have airport officials to facilitate the export of illicit abalone. Present indications suggest that corruption has not involved senior level officials or elected politicians. Nor are there any indications that these criminal groups have infiltrated the police or the judiciary. There have been relatively few arrests and trials of members of the four triad organisations. This may explain why any attempts at such infiltration would probably not warrant the risk involved at this stage. They presumably perceive themselves as operating in a low-risk environment.



The Chinese community is a relatively closed society, which tends to refrain from involving itself in the country’s political life. The Chinese criminal organisations similarly avoid any political involvement or positioning. There are no indications that they have been involved in attempts to influence political parties at any level or to stand for political office. Nor are there any indications that they have links with any armed opposition or terrorist groups. However, it must be assumed that, should the illegal activities of the Chinese criminal groups expand, they will target higher echelons for corruption and possibly individual senior politicians for favours.



THE CULTURAL ENVIRONMENTS





The Chinese community in South Africa consists of approximately 100 000 citizens/residents. The police estimate that, in addition, there are between 100 000 and 200 000 illegal immigrants from China and Taiwan. The members of Chinese criminal organisations associate themselves with their community and with the cultural life of their fellow Chinese and, because of the relatively small size of the community, have wide contacts and extensive kinship bonds within the community.



The particular cultural, physical and linguistic characteristics of members of the Chinese criminal groups make them more difficult to infiltrate by police undercover agents than, for example, indigenous South African organised criminal groups. A cultural/ethnic loyalty, or perhaps fear, among members of the Chinese community as a whole, provides a measure of protection and a safe haven for the criminal elements among them. For example, the police find it more difficult to recruit informants from within the Chinese community than is the case with other communities in South Africa. It is also very difficult for the police to obtain assistance with translations from within the Chinese community when a member of a Chinese criminal group has been charged with an offence.



CONCLUSION





South African law enforcement agencies should expect a considerable expansion of criminal activities by Chinese triad-based criminal groups. The most recent success in intercepting a shipment of narcotics from China says it all: on 10 January 2001, the authorities in Durban recovered one million mandrax tablets (methaqualone) in a Durban warehouse, with a street value of R40 million.10 This is a significant volume of drugs by any standards, and it appears that the police have been unable to identify and arrest the senior persons who organised the shipment. The fact that South Africa now has diplomatic relations with the People’s Republic of China has led to a significant increase in trade and interaction between the two countries. These growing links will undoubtedly be of major benefit to South Africa, but they will also make it easier for Chinese criminal elements to operate in the slipstream of the expanding exchanges between the two countries. The activities of organised Chinese criminal groups deserve increased scrutiny. The South African authorities should anticipate their expansion and accord a greater priority to the investigation of their criminal activities.



ABOUT THIS PAPER





Since the 1970s, Chinese criminal groups have been engaged in activities such as the illegal trading in shark fins and rhino horn. In the 1980s, this extended to the harvesting and export of abalone, the importation of counterfeit goods and trafficking in illegal immigrants. When South Africa’s law enforcement agencies moved towards investigating organised crime, the picture of Chinese organised criminal groups with links to the Triad societies of China and Taiwan became clearer. These groups also branched out into serious crimes such as drug-trafficking, prostitution, money-laundering, fraud and kidnapping. Police work has been hampered by, among others, the difficulty of infiltrating Chinese criminal groups and the lack of a dedicated investigation unit.

Triads

Triads



The term 'Triad' was given by the Hong Kong government to Chinese secret societies based on the triangular symbol which once represented such societies. The symbol is the Chinese character 'Hung,' encased in a triangle, representing the union of heaven, earth, and man. So Triads even today are sometimes referred to as the 'Hung Society' or the 'Heaven and Earth Society.' Get it right, or you'll get beaten roughly with plastic lawn chairs, I've seen it happen. The Triads, and depictions in the movies.





The purpose of these societies, it is said, was the overthrow of the Qing empire and the restoration of the Ming. The character 'Hung,' in addition to meaning the most auspicious and lucky color 'red,' also alludes to the founder of the Ming Dynasty, Hung Wu. Because of the treasonous nature of their enterprise they developed secret forms of communication and elaborate initiation ceremonies to impress upon new members the need for absolute loyalty and secrecy.



Triads have a rather elaborate history which is partly based on reality, partly myth. It involves not only a struggle against the Qing dynasty, but a retreat to the Shaolin monastery and the eventual famous burning of the monastery are an integral part. Only five survived the fire, and these are said to be the 'Five Ancestors' of modern triads. They go on to have a number of adventures which are still remembered by triad officials and sometimes represented in initiation rituals.



Triad origin mythology holds that when they recruited thousands of people to their cause, including Sun Yat-Sen, the Qing Dynasty was finally defeated. Whatever the cause of the collapse of the Qing, and whatever the triad's involvement, when it at last fell, triad societies no longer had a dedicated cause and so realigned their purposes. Some became (and in fact had been already) devoted strictly to criminal activities. Others were martial associations. Still others were like labor unions and trading associations. Many were some combination of all of these. Joining a Triad did not mean that you were a criminal, and there were many advantages to membership. The greatest advantage was that by joining the Triad you were joining an international fraternity of like-minded individuals who could then offer assistance and protection to you when necessary. Just like people who put down their fraternity affiliation on a resume these days in the hopes that their prospective employer also happens to be a Phi Beta Kappa.



It is important to note that the Triads are not synonymous with Chinese criminal syndicates. That is to say, not all syndicate members or criminals are automatically triad members. On the other hand, all triad members are criminals, if only because membership alone is considered a criminal offence under Hong Kong's 1994 Organized & Serious Crimes Ordinance. But even though everyone who is part of a triad is breaking the law through membership alone, most triad members are not otherwise criminally active. So membership in a given Triad may be estimated at 20,000, but only 2000 of those would be designated as 'active' -- i.e., engaged in criminal activity. On the other hand, a small street-level gang may have no Triad affiliation at all. Children who grow up to enter a street gang have usually made some triad contacts and it is likely they would join for the protection and status membership provides. When it comes right down to it, it's just like the fact that not all Republicans are NRA members, and vice versa, even though there is a very strong relationship between the two.



The triads then are not at all like the Mafia. The Mafia is known for strong familial ties, and a rigid pyramidal hierarchy. Triads on the other hand, are loose affiliations in the extreme. Although there is an hierarchy to Triad leadership, those lower on the ladder have much more freedom of lateral movement. In fact, rarely are the movements and activities of smaller gangs directed by the leaders of a triad. Triad members do not typically have to secure permission from the head of a triad in order to engage in a criminal activity, even if the activity involves partnering with people who are not members of the triad or are even in fact members of a different triad. So how does it all work, then?



Joining a triad can be a great advantage to a person who wishes to engage in criminal activity. Immediately upon entering a triad, they will have greater access to resources and be able to more easily partner with other members of the triad to pull off their money-making schemes. Not only that, claiming membership in a large criminal fraternity backs up an individual criminal and increases his status. Victims of extortion are much less likely to protest when they feel that the powerful and mysterious triads, who have tentacles all over the world, are leaning on them, as opposed to just feeling picked on by some 14 year old punk without much in the way of future prospects. The street punks themselves find greater self-respect in the fanciful idea that they belong to a fraternity of noble warriors whose history extends back hundreds of years. Although there is not necessarily a direct benefit to senior members of triad fraternities from the actions of junior members, benefits do move upward especially through monetary and other gifts given by junior triad members to their seniors on special occasions such as the Chinese New Year and other holidays.



Although triads originated in China, Hong Kong is the undisputed capital. Triad activity is most concentrated there. Triads do have international scope, however, with members in nearly every country in the world, especially strong in China, southeast Asia, and the United States. Triad criminal activity includes but is not limited to street-level crime like gambling, extortion, and prostitution, and international activities such as narcotics trafficking, counterfeiting, and smuggling goods and people.



In Hong Kong, it is estimated that there are 50 triad societies with a total membership of at least 80,000. Of these societies, about fifteen are criminally active. What follows is a list of the largest triads operating in Hong Kong:



Sun Yee On: The largest triad in Hong Kong with an estimated 25,000 members. In addition to activities in Hong Kong, intelligence reports since 1994 seem to indicate that they dominate the government of Guangdong Province on the mainland.



Wo Group: There are around nine subgroups in this triad grouping with a total membership of around 20,000. Different subgroups have been known to 'specialize' in different activities, the Wo Shing Yee controls dockworkers, the Wo On Lok specializes in loan-sharking, the Wo Hop To runs protection rackets, and so on. The original Wo group triad was the Wo Shing Wo, and it is the longest established triad in Hong Kong.



14K Triad: Also with roughly 20,000 members, the 14K originated with the fight by the Guomintang against communism. Chiang Kai-Shek ordered that a league of all triad societies be established and used to fight communist forces using guerrilla tactics. The '14' in the name refers to the address of the original headquarters of this effort. There are over thirty subgroups to the 14K, and it remains one of the most powerful triads internationally.



Big Circle Gang: Former Red Army Guards and PLA soldiers form a sort of loose affiliation of gangs, though they are not technically a triad society. They enter Hong Kong illegally and are known for violent armed robberies of jewelry stores, banks, and gold dealers. Often they are equipped with military weaponry such as assault rifles and grenade launchers. The name may derive from re-education detention camps in China to which Red Guards have been sent or escaped from, and which are marked on maps by a large circle.



Triad Organization



At its most basic level, the heirarchy of triad members matters little except in each individual relationship between two members, each based on ties between the 'Dai-Lo,' or big brother, and 'Sai-Lo', or little brother. The big brothers give work, protection, and advice to the younger brothers, who give loyalty, support, and money in exchange. In many cases, this is the only relationship that matters.



But there is a triad heirarchy. It is not really known to what extent it is still used. Most analysts agree the lower level ranks are still commonly in place, but how many triad groups use the more complicated higher rankings and to what extent cannot be accurately measured. Along with the names of each rank, triad ranks also have numbers, all beginning with the number 4, which represents the four oceans which were said to surround China in ancient times, and so signifies the universe as a whole.



489: At the top of the triad hierarchy is the man known as Mountain Lord, First Route Marshal, or Dragon Head. The Dragon Head is an elected position, and the person in this position has final responisibility for the triad organization as a whole, including arbitrating conflict within various branches, and guiding the general direction the organization should be taking. His word is law. He is sometimes referred to as a 21 (4+8+9), the character for which reflects the symbol for 'hung,' as used to represent the Hung Society as a whole.



438: Below the Dragon Head are a number of positions of equal rank: The Assistant Mountain Lord, the Incense Master, and the Vanguard. The assistant acts as the Dragon Head's proxy in his absence, and is often conferred with by the Dragon Head for important decisions. The Incense Master and Vanguard officiate over triad rituals, in this respect they are extremely important in preserving the rituals and ensuring that they remain potent symbols of the triads history and power. In this regard, the number 438 becomes 15 (4+3+8), which further breaks down into 3 X 5: 3 symbolizing creation, and 5 symbolizing longevity. Of course, all this numerological massaging is suspect at best. Although these are common explanations for the rank numbers, it is more likely that the numbers had some significance as part of the ancient mystery rites from which triads developed, long ago, significance which has long been forgotten and supplanted by explanations based on more recent triad history and numerology.



426: The Red Pole. Red Poles were originally military unit leaders, they are now gang leaders. A Red Pole may have around fifty men under his command. He is the one who takes care of the messy aspects of triad life, if pressure needs to be put on, if someone needs to be rubbed out, the Red Pole is called and he carries out the assignment with his men.



415: At the same level as the Red Pole is the White Paper Fan, or administrativie officer. The White Paper Fan is responsible for keeping the books, investing the money, determining legal strategy, and so on. Typically highly educated and not a fighter, but may consult with a Red Pole on strategy.



432: The Straw Sandal, also at the same rank in a triad organization as Red Poles and White Paper Fans, is the triad messenger. Someone need a ransom notice? The Straw Sandal delivers. He also organizes branch meetings and gang fights.



49: At the bottom of the triad hierarchy are the 49s. Almost all triad members belong to this category. They are the footsoldiers of organized crime. 49 becomes 36 (4 X 9), the number of oaths a new recruit must swear before joining the triad.



According to recent police reports, many triads organize themselves out of Red Poles and 49s. The Red Poles might each be branch leaders. A council of Red Poles presides over the triad as a whole, with one of the Red Poles being elected as Chairperson, another as Treasurer. Most of the other ranks have fallen into disuse.



Triad Initiation Ceremonies



Elements of triad initiation are derived from all aspects of the history of triad societies. The ritualized aspect derives in part from when triads were more like cults. The swearing of absolute secrecy comes from their tradition of anti-government activities. Initiation fees are paid, dating from practices in place when triads were more similar to trade-guilds or cooperatives. Each element of the initiation ceremony represents some aspect of the myth and occasionally the reality of triad origins.



The initiation ceremony as it was practiced as recently as twenty years ago could take six hours to complete. These days, however, triad officials have little time to conduct such elaborate ceremonies, and fewer and fewer people even know the proper way to conduct one. Instead, new recruits are given a quick, fifteen minute ceremony in which they must swear the thirty-six oaths, and really that's about it. The longer ceremonies may still occasionally be conducted for promotions.



It begins, then, with entrance into the triad lodge. The lodge is not a fixed space, rather it is wherever the ceremony is set up. It could be someone's basement, or even an alleyway. As a result, the layout of the ceremonial chamber is adapted to meet the needs of the situation. The recruit is summoned to the lodge by a notice written on red paper or a strip of bamboo. The recruit must remove his shoes and socks, and bare his chest before entering. The Incense Master and the Vanguard preside over the ceremony.



Upon entering the lodge, there are three archways or gates through which the initiate must pass. In front of the first, on which a warning is written which reads, 'On entering the door, do not proceed further if you are not loyal,' the initiate does a ritual dance, then passes through. The archway itself is made of crossed swords, and entering the archway is called 'Passing the Mountain of Knives.' On the other side the Vanguard records information about his membership (of course, no written records are kept). The second gate is named the 'Loyalty and Righteousness Hall.' A sign on the arch declares 'Before the gate of loyalty and righteousness all men are equal.' After passing through this second arch, the initiate pays his initiation fee, handing it over in a little red envelope. Past the third gate is the 'Heaven and Earth Circle,' and a sign on the arch states, 'Through the Heaven and Earth Circle are Born the Hung Heroes.' The recruit must pass through the third arch, then the 'Heaven and Earth Circle' itself, a bamboo hoop. Passing through the hoop represents a sort of rebirth into triad society. On the other side of the Circle the initiate enters the main hall and must then navigate through a series of episodes symbolizing the history of the triads, with names like 'The Stepping Stones,' 'The Two Plank Bridge,' and 'The Fiery Pit.' Senior triad officials stand on either side, observing the progress of the initiate through the ritual.



At last, the initiate stands before the triad altar at the end of the hall, where senior triad leaders recite some triad poetry to him. Believe it or not, there are books full of triad poetry, kept carefully guarded and secreted away by some triad members. After the poetry slam, the initiate washes his face, removes his clothes, and is given white robes and straw sandals to wear. His old life washed away, he is now prepared for his rebirth as a triad member. In front of the altar, he swears the thirty-six oaths, and binds the oaths with blood -- usually a cock is killed and its blood dripped into a bowl of wine. Then yellow paper is burned and its ash added to the blood wine, and it is tasted by the initiate. The bowl is broken to illustrate what becomes of traitors. The recruit is now a 49. The ceremony ends with a trip to a restaurant for a feast of celebration.



The elaborate ceremony instills respect and fear of the institution into new triad recruits. As long as a sense of awe and respect fills his heart, he will be loyal. But ever since the crackdown on triads in Hong Kong, elaborate initiation ceremonies are a dying breed. Sometimes the new recruit may nowadays forgo the entire ceremony, instead swearing to an altar to Guan Yu, the God of War. Although Guan Yu is worshipped by all triads (and police) in Hong Kong, he actually does not figure in the original initiation ceremony, which adheres strictly to symbolism derived from the triad origin myths, in which Guan Yu does not play a part.



The Thirty-Six Oaths



I found many sources for the thirty-six oaths, each one differing widely from the other. The most legitimate list I could find comes from W.P. Morgan's Triad Societies in Hong Kong, written in 1960, and reprinted below. These days the oath-taking is much abbreviated, but this list can be considered a list of traditional Triad oaths, which the so-called honorable Triad men would follow.









After having entered the Hung gates I must treat the parents and relatives of my sworn brothers as my own kin. I shall suffer death by five thunderbolts if I do not keep this oath.



I shall assist my sworn brothers to bury their parents and brothers by offering financial or physical assistance. I shall be killed by five thunderbolts if I pretend to have no knowledge of their troubles.



When Hung brothers visit my house, I shall provide them with board and lodging. I shall be killed by myriads of knives if I treat them as strangers.



I will always acknowledge my Hung brothers when they identify themselves. If I ignore them I will be killed by myriads of swords.



I shall not disclose the secrets of the Hung family, not even to my parents, brothers, or wife. I shall never disclose the secrets for money. I will be killed by myriads of swords if I do so.



I shall never betray my sworn brothers. If, through a misunderstanding, I have caused the arrest of one of my brothers I must release him immediately. If I break this oath I will be killed by five thunderbolts.



I will offer financial assistance to sworn brothers who are in trouble in order that they may pay their passage fee, etc. If I break this oath I will be killed by five thunderbolts.



I must never cause harm or bring trouble to my sworn brothers or Incense Master. If I do so I will be killed by myriads of swords.



I must never commit any indecent assaults on the wives, sisters, or daughters, of my sworn brothers. I shall be killed by five thunderbolts if I break this oath.



I shall never embezzle cash or property from my sworn brothers. If I break this oath I will be killed by myriads of swords.



I will take good care of the wives or children of sworn brothers entrusted to my keeping. If I do not I will be killed by five thunderbolts.



If I have supplied false particulars about myself for the purpose of joining the Hung family I shall be killed by five thunderbolts.



If I should change my mind and deny my membership of the Hung family I will be killed by myriads of swords.



If I rob a sworn brother or assist an outsider to do so I will be killed by five thunderbolts.



If I should take advantage of a sworn brother or force unfair business deals upon him I will be killed by myriads of swords.



If I knowingly convert my sworn brother's cash or property to my own use I shall be killed by five thunderbolts.



If I have wrongly taken a sworn brother's cash or property during a robbery I must return them to him. If I do not I will be killed by five thunderbolts.



If I am arrested after committing an offence I must accept my punishment an not try to place blame on my sworn brothers. If I do so I will be killed by five thunderbolts.



If any of my sworn brothers are killed, or arrested, or have departed to some other place, I will assist their wives and children who may be in need. If I pretend to have no knowledge of their difficulties I will be killed by five thunderbolts.



When any of my sworn brothers have been assaulted or blamed by others, I must come forward and help him if he is in the right or advise him to desist if he is wrong. If he has been repeatedly insulted by others I shall inform our other brothers and arrange to help him physically or financially. If I do not keep this oath I will be killed by five thunderbolts.



If it comes to my knowledge that the Government is seeking any of my sworn brothers who has come from other provinces or from overseas, I shall immediately inform him in order that he may make his escape. If I break this oath I will be killed by five thunderbolts.



I must not conspire with outsiders to cheat my sworn brothers at gambling. If I do so I will be killed by myriads of swords.



I shall not cause discord amongst my sworn brothers by spreading false reports about any of them. If I do so I will be killed by myriads of swords.



I shall not appoint myself as Incense Master without authority. After entering the Hung gates for three years the loyal and faithful ones may be promoted by the Incense Master with the support of his sworn brothers. I shall be killed by five thunderbolts if I make any unauthorized promotions myself.



If my natural brothers are involved in a dispute or law suit with my sworn brothers I must not help either party against the other but must attempt to have the matter settled amicably. If I break this oath I will be killed by five thunderbolts.



After entering the Hung gates I must forget any previous grudges I may have borne against my sworn brothers. If I do not do so I will be killed by five thunderbolts.



I must not trespass upon the territory occupied by my sworn brothers. I shall be killed by five thunderbolts if I pretend to have no knowledge of my brothers' rights in such matters.



I must not covet or seek to share any property or cash obtained by my sworn brothers. If I have such ideas I will be killed.



I must not disclose any address where my sworn brothers keep their wealth nor must I conspire to make wrong use of such knowledge. If I do so I will be killed by myriads of swords.



I must not give support to outsiders if so doing is against the interests of any of my sworn brothers. If I do not keep this oath I will be killed by myriads of swords.



I must not take advantage of the Hung brotherhood in order to opress or take violent or unreasonable advantage of others. I must be content and honest. If I break this oath I will be killed by five thunderbolts.



I shall be killed by five thunderbolts if I behave indecently towards small children of my sworn brothers' families.



If any of my sworn brothers has committed a big offence I must not inform upon them to the Government for the purposes of obtaining a reward. I shall be killed by five thunderbolts if I break this oath.



I must not take to myself the wives and concubines of my sworn brothers nor commit adultery with them. If I do so I will be killed by myriads of swords.



I must never reveal Hung secrets or signs when speaking to outsiders. If I do so I will be killed by myriads of swords.



After entering the Hung gates I shall be loyal and faithful and shall endeavour to overthrow Ch'ing and restore Ming by co-ordinating my efforts with those of my sworn brethren even though my brethren and I may not be in the same professions. Our common aim is to avenge our Five Ancestors.





[UPDATE: For those sharp triad boyz who have posted below requesting that this information be removed because it is super top-secret sensitive information: while I appreciate the vote of confidence, where have you been? This information is public knowledge and can be gathered by anyone with a library card (which is how I got it). For that matter, you can find another translation of the oaths, and more triad information, over at wikipedia now. This article was written solely to increase your understanding and enjoyment of Hong Kong movies with Triad themes. Kids, don't play with these oaths at home!]