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Green Gang Secret Society Ruled Kuomintang China Through Narco Trade

PHOTO: Coroflot

It should be clear that the porous southwest U.S. border and ensuing lawlessness is a booster for drug trafficking by large para-political/criminal organizations that have captured state functionaries. This is malevolent by intent and explains the real purpose behind “President” Biden’s policies.

Biden’s border crisis has morphed into a drug crisis as transnational cartels have taken over large swaths of the southern border. Fentanyl seizures at the southern U.S. border have spiked 4,000% this year. This cheaper and plentiful fentanyl is alarming, as it will be used as filler for other drugs, also brought in by the same gangs, and add to their lethalness. 

A Winter Watch core interest in our research and world view is with para-political Crime Syndicate elements. For this we turned to an excellent historical template for understanding this process: the Green Gang of pre-Communist China. Source material is covered in the books “The Shanghai Green Gang: Politics and Organized Crime, 1919-1937” by Brian G. Martin and in “The Soong Dynasty” by Sterling Seagrave.

The Green Gang, also known as the Society for Common Progress, focused on opium and later heroin, extortion, gambling and prostitution. “Gangster tactics” (aka extrajudicial violence) was utilized as was a tight-knit generational familial structure organized into — surprise, surprise — a secret society. The Green Gang’s roots and structure derived from 19th century salt smugglers.

And this one was no Taco Bell misdirection commercial. It brought other made men and associates into the ranks by sworn brotherhood. Competition and rivalry was controlled by a face-saving measure whereby a declining chieftain would swear brotherhood to a rising thug to keep continuity. This included the police and government officials whose ranks were filled with sworn brothers. This sworn method was extended to include elite Shanghai capitalists, as in a literal Carlinian “big club and you ain’t in it” mechanism [Martin, p. 21].

Shanghai in the interwar years was particularly fertile ground for secret society gangs, not least because it was divided between a Chinese run city, the International Settlement, and the French Concession. Additionally, war lords, rather than a central or strong regional government, ruled most of China, including Shanghai, resulting in an absence of law and order. This anarcho-tyranny cleared the path for organized criminal gangs, much like what is developing in the U.S.


California Anarcho Tyrants Prepare to Release 78,000 Hardened Felons into Unsuspecting Communities

One of the means that proved rather effective was bribing the consuls of countries enjoying extraterritoriality in order to obtain the nominal citizenships of these states and the extraterritorial privileges that went with it. The hazy sanctuary city residence status of tens of thousands of para-criminal gangs settling in the U.S. combined with police defunding is a carte blanche Trojan Horse for employing this method.

With this method, the gangster bosses could ensure that any criminal cases involving themselves would be heard before these bribed and corrupted consuls in the courts of the International Settlement and the French Concession, which would invariably dismiss the proceedings. The French made Green Gang kingpin, Pockmarked Huang, the chief of detectives in the French Concession.

Du Yuesheng
Du Yuesheng

With this protection from prosecution, Big-Eared Du Yuesheng went about taking control over the rackets and quite quickly institutionalized power. He was simultaneously the dominant opium and heroin importer and distributor, the operator of a successful commercial bank, a major municipal philanthropist, the communal leader of organized labor and the operator of a prominent club for the Chinese bourgeoisie.

In the 1920s, the Portuguese, Spanish and Chilean consuls enjoyed a lucrative business by selling the rights of citizenship of their respective countries to a large number of local Shanghai gangsters. These gangsters include the aforementioned Du Yuesheng, who enjoyed Portuguese citizenship, and the Chaozhou narcotics king, Ye Qinghe, who claimed to be a “Chilean protoge” [Martin, pgs. 34-35].

Once the Gang established a strong toehold because of the lawlessness, the abjectly corrupt Kuomintang Party (KMT), under the political leadership of Chiang Kai-shek, was happy to delegate operational responsibilities to thugs and share in the largesse. “The government, in fact, was nothing more than a glorified extortion agency whose main administrative function was to run gambling houses, opium divans and brothels,” Martin wrote [pg. 151]. The result was a para-criminal corporatist model of government, very much as seen in the Fifth Column takedown of the United States today.

The Green Gang formed certain quid pro quid relations with Chiang Kai-shek who curiously became acquainted with the gang while living in Shanghai from 1915 to 1923. In fact the “Encyclopedia Britannica” entry for Chiang Kai-Shek states he “belonged to the Green Gang (Qing Bang), a secret society involved in financial manipulations.”

Green Gang carrying out 1927 Shanghai massacre

In 1927, Chaing’s Kuomintang forces were advancing on Shanghai. On April 12 of that year, the gangsters initiated a vicious crackdown (called the Shanghai massacre, or White Terror) on the local Communist Party organizers and labor activists. During the subsequent “reign of terror,” the city’s labor movement was destroyed and 6,000 were executed.

This pact with the Kuomintang strengthened the Green Gang’s grip on official power, so much so that Du Yuesheng was given a seemingly free hand to operate throughout Kuomintang-dominated areas of China.

The leaders of the Green Gang in 1920s (Du Yuesheng on right)

In the early 1920s, sleazy narco overlord Du Yuesheng had promoted a fake cure for opium addiction. He produced “anti-opium” pills that contained heroin, which sold by the millions. The Shanghai Gang was importing 10 tons of heroin-opium substitute annually from the West.

Following the 1928 Geneva Convention ban on the marketing of heroin, the Shanghai traffickers set up their own refineries. They were so successful that, in 1934, the Shanghai municipal council received a report that heroin was being more widely used than opium. By then, Shanghai had become a major heroin exporter to the United States.

Du Yuesheng supervised a comprehensive narcotics distribution network whilst controlling all aspects of life from underworld operations to local government and municipal finances. As head of the Chung Wai Bank and chairman of the board of directors of the Commercial Bank of China, he easily financed his illicit dealings. Yuehsheng was now by far the most powerful man in China.

In July 1935, he became a key member of the new Opium Suppression Commission, a capture tool that enabled him to ruthlessly suppress all independent operators under government sanction.

A couple examples of U.S. capture:

T. V. Soong
Chinese Foreign Minister and bankster T. V. Soong makes a BBC broadcast. PHOTO: Getty

Another key player with Green Gang ties was Chiang’s brother-in-law, Shanghai-based T. V. Soong. He received his bachelor’s degree in economics from Harvard University in 1915. He worked at the International Banking Corporation in New York while pursuing graduate studies at Columbia University. He was governor of the Central Bank of China (1928–1934) and Minister of Finance (1928–1933). He founded the China Development Finance Corporation (CDFC) in 1934, which borrowed heavily from transnational cosmopolitan banksters.

Kuomintang took power in stages. By 1928, it largely had control over most of urban China. The state was effectively bankrupt, and the para-criminal gangs extorted the Shanghai banks into purchasing national treasury bonds. Soong in particular used the Green Gang as muscle and pressured big businesses into buying up national bonds in exchange for a lack of corporate tax imposed by the government. KMT run government had access to cheap credit, but everybody else was crowded out and paid dearly. Sound familiar?

Ultimately a devastating hyperinflation emerged as between 1935 and 1949, China experienced  prices rising by more than a thousandfold. The immediate cause of the inflation is easy to isolate: the KMT government continually injected large amounts of paper currency into the Chinese economy.

The Ministry of Finance also became dependent on the flow of funds from drug trafficking. As more provinces in China came under KMT control, Chiang had turned most of the opium enterprises over to his ally, Du Yueh-sheng.

In the book “The Soong Dynasty” by Sterling Seagrave, this role was dissected. He also lays down the gauntlet in terms of the reach of this para-criminal secret society.

Soong and family then moved into the military hardware business during China’s war with Japan in the 1930s and 40s. A member of the United States Embassy staff noted in 1936 that Ai-ling Soong received “a moderate but invariable commission on all purchases of military planes,” while the British ambassador wrote that Ai-ling’s husband, H. H. Kung, had such a ”preference for his own interests over those of his country” and that he was ruining the economy.

Gen. Joseph W. Stilwell was mystified and angry over the disappearance of huge amounts of lend-lease supplies in World War II; and immense American loans, many of which passed through the hands of T. V. Soong, his brothers or his brother-in-law, were never adequately accounted for.

Seagrave gives us another template for our times with the Chinese experience. There was a “grand strategy” between Chiang/Soong and the criminal gangs in both Canton and Shanghai during early 1927. Later that same year, the revolution in Wuhan was “subverted by the Green Gang until it collapsed from within.”

Still later, “The Nanking government was quite simply a Trojan horse, painted in bright colors by the Soong clan.” Inside this horse “were hidden the generals, secret policemen and Green Gang leaders who actually yielded power in China.” Similar forces, he believes, lay at the heart of the New Fourth Army Incident of 1941, when a KMT attack on Communist troops prompted the collapse of the United Front against the Japanese.

In typical fashion, this para-criminal conspiracy was papered over in the U.S. by Henry Luce’s pro-Soong news network, Soong’s lobbying network, the obstinacy or lethargy or capture of State Department veterans like Stanley Hornbeck, and the incompetence, ignorance or, we would say, culpability of Franklin D. Roosevelt. Do we see a pattern here?


Read “Portrait of Evil: Walter Duranty, The New York Times Moscow Bureau Chief Who Deliberately Hid Soviet-Imposed Famine that Killed Millions in Ukraine”

Chiang Kai Shek

The Kuomintang, after their defeat by the Communists in 1949, fled in two directions.  One group, led by Chiang Kai-shek, escaped south from Shanghai and via Hong Kong to settle in Formosa (Taiwan). The other group, led by General Lee, escaped through Yunnan to settle in northern Thailand and Burma.

With CIA support, the Kuomintang remained in Burma until 1961, when a Burmese army offensive drove them into Laos and Thailand. By this time, however, the Kuomintang had expanded Shan State opium production by almost 1,000%, from less than 40 tons after World War II to an estimated 300 to 400 tons by 1962.

From bases in northern Thailand, the KMT continued to send huge mule caravans into the Shan States to bring out the opium harvest. By 1971, these KMT caravans controlled almost a third of the world’s total illicit opium supply and a growing share of southeast Asia’s thriving heroin business. The Hong Kong-based “14K” triad, with its strong links to the old Shanghai Green Gang, was able to link the Kuomintang-controlled highlands of the Golden Triangle to the distribution channels of the USA and Europe.

In the otherwise excellent movie “American Gangster,” Kuomintang control of the Golden Triangle region in Thailand is mentioned by Frank’s cousin, and then the two do the big heroin deal with the KMT general. What was never explained adequately in the movie is exactly how the American gangsters were able to smuggle drugs flown into Ft. Bragg. It was conveniently hidden in the coffins and bodies of dead U.S. soldiers. How does that operation really work?

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9 Comments on Green Gang Secret Society Ruled Kuomintang China Through Narco Trade

  1. Communist China was created by Rothschilds and their agents.
    October 1 1949, Mao Tse Tsung declared the founding of the People’s Republic of China in Tiananmen Square, Beijing. He was funded by Rothschild created Communism in Russia and also the following Rothschild agents: Solomon Adler, a former United States Treasury official who was a Soviet Spy; Israel Epstein, the son of a Jewish Bolshevik imprisoned by the Tsar in Russia for trying to ferment a revolution there; and Frank Coe, a leading official of the Rothschild owned IMF. Jews were behind the rise to power of Mao Tse Tung, the communist dictator of China, who tortured and murdered tens of millions of Chinese (mostly Christians) during his brutal reign. Sidney Shapiro, an American Jew, was in charge of China’s propaganda organ. Another Jew, Israel Epstein, was Mao’s Minister of Appropriations (Finance).
    https://lorddreadnought.livejournal.com/37272.html
    Jews Created Communist China.
    https://www.deathofcommunism.com/jews-created-communist-china/
    Communist China was created by the Jews and serves their interests.
    https://lorddreadnought.livejournal.com/37272.html

  2. Let’s hope that the third time is the charm (I had two other uploads fail and both posts got lost in the process) for this thread, which I am glad is here today. Honestly, I was looking forward to adding to this thread; however, fate seems to indicate that I would be better off sitting on the sidelines. Well, will give it one more shot and see if this one actually loads.

    So recently, I was on WW and made a few comments related to Afghanistan, China and Mexico in the context of the United States intelligence community’s connection to the larger drug trade:

    https://www.winterwatch.net/2021/07/geopolitics-profit-and-poppies-how-the-cia-turned-afghanistan-into-a-failed-narco-state/#comment-21791

    Also, as I had originally written for this post, that I believe we might first wish to acknowledge the role of the British royal family (actually German at the time of beginning opium trading in China), the British East India Company, and the massive trade deficit between the two nations before this commodity was widely utilized in trade. In doing so, we might consider that long before the Rothschild family (mentioned in other posts) had reached an apex in the European banking community, the British royal family and their agents, the British East India Company, had already begun trading opium for tea and textiles in China.

    “By the 19th century, opium smoking had become a major problem in China. Use – and, correspondingly, supply – of the drug had expanded rapidly over the previous century, despite efforts by various rulers to quash the trade. From 1773, most opium in China was imported by British traders, and by 1838 some 40,000 chests – around 2,500 tonnes – were arriving in Chinese ports each year. The Daoguang Emperor decided it was time to act.”

    https://www.historyextra.com/period/victorian/china-britain-opium-war/

    https://artsandculture.google.com/exhibit/the-burning-of-opium-at-humen/AR2zugte

    If we consider that the rise of the Rothschild family in England, and more importantly over the guilds in the City of London (not London proper, but the City, an autonomous business zone within London) had an inception point of (roughly) June 18, 1815, then we might keep responsibility firmly with the British government, first. Now this is not to say that the Rothschild family did not partake in or profit from the trade of opium (please read on), but I was seeking to establish the inception point of opium trading as having originated in the 18th century, around 1760, which does occur while they were on an ascendency in the banking world, but had still not reached an apex.

    Now there is a very good point to be made of how the whole of Asia began to change in the 19th century and the role that our own nation played in the regions evolution. We might acknowledge that the United States of America, as represented by its elected officials and the United States Navy, forced trade upon a peaceful, but isolated nation, known as Japan / Nippon / Nihon. American greed and jealously of the European nations resulted in the very un-American action (please recall, no foreign entanglements) of forcing a nation to become a trading partner against their own will. Prior to this point, the British, Dutch and French had been quasi-politely imposing their national will upon the Chinese. Further, we may also wish tot recall the atrocities of Spain in the Philippians (which was followed by American colonization, then a Japanese invasion, and finally more American control with a “window dressing” of independence). Overall, we might concur that Asia has not been treated very well by western nations and to a large extent it would be a combination of corporations, governmental offices, and intelligence organizations that have done the greatest harm.

    Back to China…we know that the British royal family and its corporate proxy seek dominance in the region regarding the opium trade:

    “1763: British traders asserted its opium monopoly in India and excluded native, Dutch and French merchants who previously bought opium in competition.

    1790: In China opium use was fashionable for rich youths, young clerks and government officials.

    1799: China gives imperial proclamation to prohibit the importation of opium throughout China.”

    (https://www.providencehealthcare.org/salome/timeline.html)

    So if we pass on the Dutch, Portuguese, the French, trade from Turkey, as well as any direct trade from India (pre-British control / very historic) with regard to opium and China since the quantities were smaller, the trade was also part of a larger basket of traded commodities between these nations, and the sale of the opium was directed toward the recreational use by the wealthy / middle class, as opposed to a wider spread epidemic aimed at the larger populous. What we are left with is British involvement, a trade deficit and inflation:

    “The roots of the Opium War (or First China War) lay in a trade dispute between the British and the Chinese Qing Dynasty. By the start of the 19th century, the trade in Chinese goods such as tea, silks and porcelain was extremely lucrative for British merchants. The problem was that the Chinese would not buy British products in return. They would only sell their goods in exchange for silver, and as a result large amounts of silver were leaving Britain.

    In order to stop this, the East India Company and other British merchants began to smuggle Indian opium into China illegally, for which they demanded payment in silver. This was then used to buy tea and other goods. By 1839, opium sales to China paid for the entire tea trade.”
    (https://www.nam.ac.uk/explore/opium-war-1839-1842)

    “First, opium. In China, it was a normal item of use and trade for centuries before the 1840 war. Not until the later 1790s did the Chinese court start to worry about its growing and intensive use. In the 1820s it began seriously to prohibit opium imports, though the bans entirely failed to stop Chinese people from growing or buying it in in-creasing quantities. Still less did it stop Chinese citizens, merchants, gangs and hordes of officials from ignoring the prohibitions and smuggling it into the country. Even sen-ior officials in charge of coastal protection grew very rich indeed from smuggling, or smugglers’ kickbacks. In the later 1830s the emperor’s most senior advisers debated whether it would be better to enforce the opium prohibitions or to legalize, regulate and tax the trade. Not until 1838-39 did the emperor finally opt for enforcement and send the admirable Commissioner Lin to Canton to see to it. The most important official concerns were two. One was the damage done to the health and capacity for work of the people using opium, especially the addicts. The other was the economic damage done by the opium trade. Most importantly, too much silver was being paid to foreign merchants for opium, and thus leaving China. The do-mestic price of silver was therefore going up. But the price of everyday copper cash re-mained the same. So tax payments, which had to be made in silver, were effectively tax increases, causing much popular resentment and social unrest.”
    (https://ces.fas.harvard.edu/uploads/files/Working-Papers-Archives/CES_WP136.pdf)

    Speaking of silver, how about we circle back around to the Rothschild family? They peg the date of their involvement with China to 1838, which gave them plenty of time to join the opium trade through currency exchanges, loans, owners of equities / gilts (https://en.wikipedia.org/wiki/Gilt-edged_securities), insurers, and private sponsorships:

    “The first firm evidence of trading links between N M Rothschild & Sons and China dates from 1838, In the earliest surviving letters from Rothschilds’ agents in Canton (now Guangzhou). Chinese silks feature considerably, alongside tin, tea, cochineal and quicksilver, as the stock in trade of an increasingly bustling corner of the globe. Following the Anglo-Chinese Treaties of 1842 and 1858, which ended the Opium Wars, N M Rothschild & Sons moved to expand the Chinese links. Much of the correspondence with their agents in Shanghai focused on silver, the medium of commercial payment in China.

    Sycees (a type of silver bullion) took the form of ingots called ‘shoes’, so-called because they were supposed to resemble the Chinese female foot. They were used throughout China in varying weights and sizes. Each ingot was stamped with the name of the smelter, date of casting and an indication of the weight and fineness. Trading and shipping of specie and bullion had, from the first, been a central pillar of the business of N M Rothschild and the firm was quick to organise a substantial trade to China.”

    (https://www.rothschildarchive.org/collections/treasure_of_the_month/treasure_of_the_month_may_2014)
    Further, I would opine that the British Foreign Office were (in essence) proxies for the Rothschild family in China and the Royal Navy / Maries were their enforcers. Not to out done by our Anglo cousins, the United States jumped into both the opium trade and conflict in China during the 19th century. As we might agree, the Roosevelt family was rather wealthy due to its involvement with the original Bank of New York, which became the Federal Reserve Bank branch in New York City (think of the film Goldfinger, but move the vault in your mind from Kentucky to New York City or watch the barely watchable Die Hard 3, the choice is yours), the most powerful branch of the twelve; however, in the old Delano-Roosevelt match-up, the actual big money came from the Delano side since that family made its money drug dealing:

    https://delanceyplace.com/view-archives.php?p=3509

    http://content.time.com/time/subscriber/article/0,33009,796730,00.html

    https://en.wikipedia.org/wiki/Warren_Delano_Jr.

    Then there were the Astors:

    https://www.history.com/news/john-jacob-astor-opium-fortune-millionaire

    And the Forbes:

    https://en.wikipedia.org/wiki/Forbes_family

    https://en.wikipedia.org/wiki/Francis_Blackwell_Forbes

    If we are wondering about the Jewish influence in the drug trade, beyond the Rothschild family, then we need to consider the Sassoon and Kadoorie families; although the later family was not considered to be directly involved with the drug trade, the Kadoorie family originally worked for the Sassoon family and therefore participated in the enterprise of opium trading.

    https://www.jacksonville.com/story/entertainment/books/2020/06/28/book-review-how-two-jewish-families-shaped-modern-china/41740643/

    Actually, if we really wish accountability in the spread of opium in China and the environment that followed (including the rise of Triad gangs such as the Green Gang), then we need to hold the Sassoon family accountable for their actions:

    “In 1844, Elias Sassoon of Bombay set up family business operations first in Canton and shortly thereafter, in Shanghai. Sassoon was among the first Jews to engage in the opium trade in Shanghai, and that trade became the financial basis for Shanghai’s Jewish community. Most of opium’s stakeholders, from the growers of the drug to its shippers, supercargoes, and distributors, were fully aware that, apart from small amounts of opium gathered for genuine medicinal purposes, they were handling an addictive, physically debilitating, and socially destructive recreational narcotic. The overworked, largely illiterate Chinese end users employed the drug for immediate relief from arduous labor and most likely were not fully aware of these social complexities.”
    (https://www.chinacenter.net/2020/china_currents/19-3/some-unanswered-questions-about-the-shanghai-jewish-experience/)
    Now this post has become very long and I should close it down here. The first post I wrote was more succinct and better paced. This one covers most of the raw data I amassed and the basic ideas I had been working on.

    In closing, I would state that although I do hold the Rothschild family responsible for its role in World War II as a whole, I do not believe that China’s turn toward communism was completely under their sphere of influence. Humbly, I would consider a few other players / events as also influencing Mao’s eventual path:

    Franklin Delano Roosevelt was a true fascist (not a socialist), who was admired by both Mussolini and also Mao, had an effect on the latter with regard to an iron grip on a large nation;
    I think to some extent Mao viewed Stalin (for the iron hand) and Hitler (for turning around an economy utilizing socialist techniques) as influences as well;
    The American Lend Lease program that supported both Mao and Chiang Kai-shek had an impact on how the United States could direct the future course of both men;
    (http://pwencycl.kgbudge.com/L/e/Lend-Lease.htm)
    The OSS / CIA / SIS desire to have a Cold War extend well beyond the European theater (too big to even get into, although this thread does touch upon It already);

    And

    Secret societies of both the west and east coming together to reshape Asia as a whole (Freemasons and Triads, Freemasons and the Yakuza / Daimyos, as well as other similar groups).

    All of these elements / groups / events would have been factors in the larger picture of the why / how Asia turned out the way it had, following World War II. Although I am sure that the Rothschild family was a major aspect of Anglo-American policies, I would just as easily point to Rockefeller influence, especially regarding Communist China and Mao in particular. To my knowledge, the Chinese government under Mao did in fact receive loans from Chase Manhattan Bank, a Rockefeller organization, well before the nation began to open up toward the west. Also, we would never forget the Goldman and Sachs influence that began in the 1980s.

    Well I am sure I missed quite a bit in this one and went way off topic; however, I do hope that some of the links are supportive of what culminates in the history detailed in this thread.

    All my best,
    Simple Citizen

  3. Having done lots of research on China (20s through 40s when Mao took over), this info was still eye opening! I wonder though if the Green Gang was part (or is part) of the so-called “Triads”….and now I know where so-called “China White” came from. On reason I turned leftist in the late 60s (but turned around from that in a short time) was the corruption research I’d done on Chaing Kai-shek and the KMT. Thanks, Russ! And this post also reminded me of the beginning scenes in “Indiana Jones and the Temple of Doom,” that Shanghai night club run by a drug mob boss.

    • Interesting post and a great image from a film that works well with the thread. I do believe that the Green Gang would have been a part of the Triad system.

      In terms of my own cinema image, I often think of After the Thin Man, Year of the Dragon, for some strange reason, and / or The Last Emperor. Only the last one takes place in China, yet each movie intersects with the Triads, the drug trade and / or the British.

      Best,
      SC

      • That was a brilliant recap. Amazing research skills. I, too, notice how these stories are resold to us in movie form.

  4. Big-eared Tu was the Chinese High Commissioner on Opium Production at the very same time that Fredrick Delano was the League of Nations High Commissioner on Opium Production. Delano’s father was Warren Delano, the ‘Opium king of China’. Fredrick’s favorite nephew and presumed successor in the dope business was Franklin Roosevelt. Why FDR? because Fredrick had five daughters, but no sons.

  5. Peter Dale Scott deals a lot with the overlap of WACL, Chinese drug barons and the KMT in “Deep Politics and the Death of JFK”. Madame Chiang (TV Soong’s daughter) somehow had the American press kissing her feet. TV Soong’s pose was that he was Christian. Which didn’t square with his associtions or business practices. But Americans at that time ate it up. When Chiang tangled with Japan, he called on his American friends for help. I have not read any source that alleges Japan was engaged in the opium trade. They wanted a pliable neighbor.

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