A Danish director of Swiss-based coffee trader Socadec was held in Laos from 29 Jan 2001 to February 2001 on charges of fraud related to contracts enacted by bankrupt commodity trader G.Premjee Ltd of Singapore. Jens Nielsen had been detained in the town of Pakse in the southern coffee growing area of Laos for 10 days before diplomats were able to meet with him briefly. Nielsen was the managing director of Geneva-based Socadec S.A.'s Asian operations and a former employee of G.Premjee's coffee unit, which was bought by Socadec in November 2000. G.Premjee Trading Pte Ltd in Singapore, a unit of Bangkok-based trading firm G.Premjee Ltd, was put under judicial management in October 2000 with debts totalling $111 million, according to court documents. Jens Nielsen was charged as his signature appeared on exporter documents, but funds had not reached the coffee suppliers.

"It is very clear the contracts were for the buyer (G.Premjee, Singapore)...and not in his (Nielsen's) own name," a diplomat said.

Nielsen arrived in Pakse on January 15 and was arrested on January 19, 2001. He was held in primitive prison until finally he was granted access to his lawyer and a foreign diplomat.

"He is confident (that he will be released soon). He hasn't done anything wrong," one source said. "The Danish government fully supports his case and there is no reason for Laos to retain him any longer."

It was reported that G. Premjee Ltd. owed Laotian coffee exporters US$180,000 in unpaid bills. Regardless of whether a company has declared bankruptcy, the trader concerned is usually the one held accountable for transactions made and not the manager of the company taking over the investment project. So typical is the judicial process in Laos whereby anyone can be held in 'proxy' for a crime they didn't commit. Just so long as the Laos government has someone to pay them money.

Definition of state sponsored terrorism "whereby a person is detained by a STATE for political or financial gain".

CHIANG MAI, THAILAND -(Dow Jones)- A former coffee trader for G. Premjee Ltd is expected to be released soon from a prison in Laos, a source familiar with the case told Dow Jones Newswires Thursday. Jens Nielsen, a Danish citizen, was vice president of Premjee's coffee unit and now works for Geneva-based Socadec S.A.. He has been detained in Laos since late January for outstanding bills Premjee failed to pay Laotian exporters.

Nielson was scheduled to speak at the Seventh Asian International Coffee Conference in Chiang Mai, Thailand, but was replaced by his Socadec colleague Tran Ngoc Han.

The source said Nielsen went to Laos to set up new business for Socadec, and didn't expect to be arrested for Premjee's debts.

"He is confident (that he will be released soon). He hasn't done anything wrong," the source said. "The Danish government fully supports his case and there is no reason for Laos to retain him any longer."

G. Premjee Ltd. owed Laotian coffee exporters US$180,000 in unpaid bills, the source said. He said in Laos as well as Vietnam, regardless of whether a company has declared bankruptcy, the trader concerned is usually the one held accountable for transactions made. He said Nielsen hasn't been treated like a regular prisoner and has been provided with better conditions.

Socadec bought Premjee's coffee unit in November, not long after Premjee's Singapore unit was placed under judicial management after incurring debts totaling US$111 million. Socadec had sought the help of the Laotian embassy in Paris for Nielsen's release, he said.

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