1967 Opium War
The 1967 Opium War took place in northwestern Laos between February and August 1967; actual fighting took place from 29 July to 1 August 1967. A Burmese mule train carrying 16 tons of opium crossed into Laos to Ban Khwan, where they were attacked by rival drug smugglers from the Chinese Nationalist's Third and Fifth Armies. The intended recipient of the shipment, Royal Lao Army General Ouane Rattikone, bombed both sides while moving in troops to sweep the battlefield. With both Burmese and Nationalist Chinese defeated and expelled from Laos, the Lao general confiscated the opium for himself.
With this supply of raw opium base, plus his greater grasp on the drug trade, Ouane's refineries began to ship their heroin worldwide. He also supplied this injectable heroin to his allies—U.S. troops in the Vietnam War.
Background
As World War II ended, the French found themselves embroiled in the First Indochina War. On 23 December 1950, the United States signed the Pentalateral Treaty with France, Cambodia, Laos, and Vietnam binding them to financially support the French effort. From that point onwards, the U.S. would fund an ever greater proportion of the French war effort; by 1952, it was funding about a third of the French budget for the war. Beginning as early as 6 May 1953, the U.S. Central Intelligence Agency (CIA) used its proprietary airline, Civil Air Transport, for combat supply drops in support of the French Army in Laos. Following the North Vietnamese 1953 invasion of Laos and the French defeat at Dien Bien Phu, the independence of the Kingdom of Laos was confirmed by international treaty on 20 July 1954. In December 1955, the secretive Programs Evaluation Office was established in the American embassy in Vientiane, Laos to help the Royal Lao Government battle the communist insurgency.