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INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT, APRIL 1993
US DEPARTMENT OF STATE
BUREAU OF INTERNATIONAL NARCOTICS MATTERS

DEPARTMENT OF STATE PUBLICATION 10047
RELEASED APRIL 1993

The Report is for sale by the Government Printing Office, 
Superindendent of Documents.  Stock No.:  044-000-02370-9

THIS SEGMENT OF THE INCSR REPRESENTS INDIVIDUAL REPORTS FOR THE 
EUROPEAN NATIONS



EUROPE
  Albania 
  Austria
  The Baltics
     Estonia
     Latvia
     Lithuania
  Belarus
  Belgium
  Bulgaria
  Cyprus
  Czech and Slovak Federal Republics
  Denmark
  Finland 
  France
  Germany
  Greece
  Hungary
  Iceland
  Ireland
  Italy
  Luxembourg
  Malta
  Moldova
  The Netherlands
  Norway
  Poland
  Portugal
  Romania
  Russia
  Sweden
  Switzerland
  Turkey
  Ukraine
  United Kingdom
  Yugoslavia
  Central Asian States
     Kazakhstan
     Kyrgyzstan
     Turkmenistan
     Tajikistan
     Uzbekistan
  Transcaucasia
     Armenia
     Azerbaijan
     Georgia



[EDITOR'S NOTE:  Charts referenced to in brackets [ ] are 
available only in hard copy of report.]

ALBANIA

I. Status of Country.

Albania appears to play a relatively minor role in the drug trade 
although there is little information on the extent of trafficking, 
production, or domestic consumption.  West European authorities 
believe that some Southwest Asian heroin transits Albania to 
Western Europe.  The Government of Albania (GOA) recognizes the 
threat drugs can pose and is assembling a narcotics coordinating 
committee comprised of representatives from Customs and the 
Ministries of Economy and Finance, Financial Police, Public Order, 
Health, and Education.  

II. Country Action Against Drugs in 1992

Narcotics control is not a high priority for Albania.  
Interdiction efforts are limited by shortages of personnel and 
other resources.  Customs officials indicate that any heroin 
transiting the area is likely to enter across the border with 
Greece, although they have done little to enhance the border 
controls.  The customs code recently passed by the Parliament and 
now awaiting President Berisha's approval does contain strict 
penalties for drug trafficking.  

Corruption.  The USG is unaware of any reports of narcotics-
related corruption in Albania.

Agreements and Treaties.  The GOA is not a party to the 1988 UN 
Convention nor the 1961 Single Convention on Narcotic Drugs or its 
1972 Protocol.  Accession to the 1971 UN Convention on 
Psychotropic Substances is pending.  

Cultivation and Production.  Albanian Customs reports that 
cannabis is cultivated in central Albania for sale in Greece, but 
there is no information on its extent.  

III.  U.S. Policy Initiatives and Programs

The Road Ahead.  Over the next year, the USG will encourage the 
GOA to expand its drug control activities and to establish the 
necessary legislative and institutional capabilities.  The USG 
will urge Albania to ratify and implement the UN Conventions.  A 
compliance manual for the 1988 UN Convention prepared by the DOJ 
has been forwarded to the GOA for this purpose.  INM will continue 
to include GOA participants in regional law enforcement and demand 
reduction training to assist Albania's antidrug campaign.
(###)

AUSTRIA

I. Summary

Austria is primarily a narcotics transit country for heroin and 
cocaine destined for Western Europe.  Drug seizures in 1991 (1992 
figures are not yet available) increased over the previous year.  
Heroin seizures rose 33 percent to 102 kg and cocaine seizures 
more than doubled to 84 kg.  The number of drug-related 
indictments and deaths also increased.  Austria's National Bank 
issued a stricter code of conduct in February to tighten banking 
standards against money laundering.  In December, consistent with 
the requirements of the 1988 UN Convention, the Government of 
Austria (GOA) drafted a bill criminalizing money laundering.  
Parliament is reluctant to pass the bill until implementation 
guidelines are developed and loopholes in the bill are closed.  
The extent of money laundering is unknown, but the current legal 
situation makes it a potentially serious problem.

II.  Status of Country

Austria's location on the principal "Balkan route" for narcotics 
trafficking from Turkey to Western Europe makes it an attractive 
transit country for drugs destined for Western Europe.

While some money laundering takes place in Austria, the country's 
bank secrecy laws make it difficult to determine the magnitude.  A 
pending bill to criminalize money laundering, as well as proposed 
changes to the national banking laws, should discourage money 
laundering.  The changes will require banks to report to the 
prosecutor's office suspicious transactions, record the name of 
the person suspected of engaging in money laundering, and refrain 
from processing the transaction.

Austria has a system of voluntary monitoring of precursor and 
essential chemical transactions whereby chemical importers advise 
Austrian police of suspect shipments.  Austria is not considered a 
significant producer or transshipment point for essential or 
precursor chemicals.

Corruption among GOA officials is not considered a problem.

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  The GOA drafted a bill in December which 
would criminalize money laundering.  Additional laws needed to 
enforce the new statute are pending in Parliament.  The U.S. and 
Austria are negotiating a mutual legal assistance treaty (MLAT).  

Both governments cooperate closely on legal matters, including 
narcotics-related issues.  The Austrian National Bank has been 
helpful in assisting USG law enforcement agencies to track 
suspicious banking transactions, and Austrian Police assisted the 
U.S. law enforcement authorities to break up a drug smuggling ring 
involving American citizens.  The USG and GOA are renegotiating 
the current extradition treaty which has been in effect since 
1934.

The GOA antidrug program emphasizes both demand reduction and 
enforcement.  Illicit drug use and trafficking are criminal 
offenses.

Law Enforcement Efforts.  In November, Austrian police scored 
their biggest success against a drug ring with the arrest of 144 
persons.  Austrian authorities cooperate with U.S. law enforcement 
agencies in investigations of suspected money laundering 
activities and drug trafficking.  Pursuant to letters rogatory 
initiated by the USG, Austrian officials seized $600,000 in two 
safety deposit boxes belonging to an international drug trafficker 
and money launderer.  The GOA froze additional bank accounts 
belonging to the trafficker.

Vienna's Schwechat Airport, a key narcotics transit point in 
Austria, has a small, but well-trained, antidrug unit.  Little 
narcotics law enforcement activity, however, occurs at the 
borders.  In general, Austrian Customs does not devote major 
resources to detecting narcotics traffic.

Drug Flow/Transit.  Austria's role as a narcotics transit country 
is shown by drug seizures at airports and border crossings, the 
arrest of couriers, and the identification and seizure of drug-
related assets.  The strife in the former Yugoslavia has 
redirected some Balkan drug traffic through Hungary and 
Czechoslovakia to Austria.  Drug traffickers are making more 
frequent use of private cars and vans for smuggling, as well as 
bonded (TIR) cargo trucks.

Austria has not ratified the 1988 UN Convention.  Austria's 
Parliament must approve the pending money laundering legislation 
and prepare implementation provisions on tracing and seizing of 
assets before it can do so.  With the exception of money 
laundering provisions, the GOA is already meeting the Convention's 
goals and objectives.

IV. U.S. Policy Initiatives and Programs

USG objectives include conclusion of the MLAT now being negotiated 
and an updated extradition treaty.  The USG has encouraged 
Austrian efforts to pass the legislation criminalizing money 
laundering.

The Road Ahead.  The USG looks to continued cooperation with the 
GOA on narcotics law enforcement and money laundering 
investigations.  The USG considers it essential that the GOA 
ratify the 1988 UN Convention.  The USG will encourage the GOA to 
increase its law enforcement efforts at entry points into the 
country and to implement mandatory controls on precursor and 
essential chemicals.
(###)

THE BALTICS

I.  Summary

The drug trade is beginning to emerge in the Baltic states of 
Estonia, Latvia, and Lithuania, as they become conduits for 
smuggling drugs to Western Europe.  The open borders and proximity 
to Scandinavia have prompted Southwest Asian heroin trafficking 
networks to expand routes into the area.  Central Asian and 
Russian crime groups have established smuggling networks in the 
three countries.  In addition, large quantities of illicit 
amphetamines produced in Latvia have appeared in West European 
markets.  Health authorities in all three countries believe that 
drug abuse is on the rise, but that it is still a relatively minor 
problem. 

Economic and political issues continue to dominate the three 
governments, limiting high-level attention to the drug problem.  
Manpower and resource shortages have hampered progress on antidrug 
strategies.  Experts from the three governments met in June to 
discuss the drug problem and agreed to increase regional 
cooperation.  

The USG has limited information to make an assessment of the 
Baltic states' performance in meeting the goals and objectives of 
the 1988 UN Convention.  Each has taken limited measures against 
drug trafficking and, while these actions are consistent with the 
Convention's goals, the three will need to take additional steps 
to meet these goals fully.

All three governments have recognized the need to change their 
domestic legislation and formally accede to the international drug 
conventions.  They have reported efforts to draft updated penal 
codes that will take the UN drug conventions into consideration.  
The UNDCP plans to hold a legislation-drafting workshop for the 
Baltics early in 1993.  
(###)

ESTONIA

II.  Status of Country

The drug trade is gaining ground in Estonia, but the problems of 
trafficking, cultivation, and abuse are still minimal.  Estonia's 
location and lack of border controls make it increasingly 
vulnerable.  Law enforcement authorities indicate that drugs from 
Southwest Asia are smuggled to Estonia by land, sea and air.  
Often the opium and hashish cargoes are transferred to Estonian 
ships bound for Europe, particularly Scandinavia.  Police also 
have noted, for the first time, that small quantities of cocaine 
are transiting Estonia to Western Europe.

Crime is on the rise in Estonia; officials report that it has 
quadrupled since 1987.  Police authorities indicate that some of 
this is connected to the drug trade.  Most drug operations involve 
criminal groups from Southwest and Central Asia.  Police have 
discovered several Russian crime groups that include Estonians and 
are suspected of drug smuggling.  They also note that drug money 
is laundered through hard currency auctions, the buying and 
selling of rare metals, and through the purchase of raw materials 
in Russia for hard currency.  

Because there is no effective state control over the export of 
essential or precursor chemicals, Estonia could be targetted.  
There have already been some reports of small quantities of 
illicit exports of acetone and acetic anhydride to Finland.

Health authorities believe that opiates are the largest drug 
problem.  Nevertheless, the number of drug users, including those 
using cannabis products, is under 8,000.  

II.  Country Actions Against Drugs in 1992

Policy Initiatives.  The government recognizes the dangers of an 
expanding drug trade and has begun to take action.  Efforts are 
underway to draft a new antidrug law and Customs has formed an 
antidrug unit.  Nevertheless, there is no comprehensive drug 
strategy and the efforts by GOE's lead antidrug agency, the 
Ministry of Interior, is hampered by a lack of resources.  There 
were few drug-related cases or arrests between 1990 and 1992.  

Corruption.  The USG is unaware of any reports of official 
narcotics-related corruption in Estonia.

Agreements and Treaties.  The GOE is not a party to the UN drug 
conventions.  The GOE's domestic antidrug law must be modified 
before the GOE can become a party to the 1988 Convention.  The GOE 
is working with UNDCP to identify the legislative changes needed.

Estonia has signed bilateral agreements with eight of the 
republics of the former USSR:  Latvia, Lithuania, Armenia, 
Georgia, Kazakhstan, Kyrgystan, Uzbekistan, and Tajikistan.  

Cultivation and Production.  Although cultivation of opium poppy 
is illegal in Estonia, poppy continues to be cultivated for 
cooking uses.  Law enforcement authorities also believe that 
cannabis and poppy are cultivated for illicit uses, including the 
production of poppy straw extract.

Demand Reduction Programs.  The GOE has a limited drug abuse 
treatment program in six hospitals.  Health authorities indicate 
that there is a need for more public awareness and prevention 
programs.  
(###)

LATVIA

II.  Status of Country

Latvia has emerged as a drug producer.  West European authorities 
are increasingly concerned about Latvia's growing illicit 
amphetamine industry.  German authorities seized a record 3 mt of 
amphetamines from Latvia last year, traced to a licit state-run 
pharmaceutical facility established under the Soviet regime.  The 
Latvian government (GOL) closed the laboratory and confiscated 
drugs and money.  While Latvia does have a system that outlaws 
such production, monitoring efforts have been minimal.  Moreover, 
law enforcement authorities fear that other such state-run 
laboratories also may be involved in illicit production.  

Most of the heroin and cocaine transiting Latvia is destined for 
markets in Western Europe, particularly Sweden, but health 
authorities believe that domestic drug use is also increasing.  
Health experts estimated that drug users numbered approximately 
10,000 in 1991. 

 III.  Country Action Against Drugs in 1992

Policy Initiatives.  The recently formed government has been 
preoccupied with political and economic reform and does not have 
long-range antidrug plans.  There are indications that the GOL 
recognizes a need for increased antidrug efforts, but it has not 
yet committed resources to the problem.  Moreover, the police 
force ranks have been depleted by retirements and the possibility 
that many of its Russian-speaking officers will be unable to pass 
a proposed Latvian language test.  

Corruption.  The USG is unaware of any reports of narcotics-
related corruption in Latvia. 

Agreements and Treaties.  The GOL is not a party to the UN drug 
conventions.  The GOE's domestic antidrug law must be modified 
before the GOE can become a party to the 1988 Convention.  The GOE 
is working with UNDCP to identify the legislative changes needed.

Cultivation and Production.  Cultivation of opium poppy is illegal 
in Latvia,  but officials believe that there is poppy cultivation 
for cooking purposes and for the production of illicit poppy straw 
extract. 

Demand Reduction Programs.  The GOL operates five substance abuse 
centers and finances several NGO demand reduction treatment 
centers.  Nevertheless, health officials believe that there is an 
increasing need for a more comprehensive demand reduction program 
with an emphasis on preventive education.  
(###)

LITHUANIA 

II.  Status of Country 

Political changes and the elimination of enforcement forces of the 
former communist regime have left Lithuania vulnerable to the drug 
trade.  While there is little information on the extent of 
trafficking through the region, West European authorities believe 
that Turkish and other heroin trafficking networks are expanding 
their routes through Lithuania.  The open borders and removal of 
travel restrictions allowed traffickers to expand their smuggling 
operations by using private vehicles and new routes.  There are 
now reports that Lithuania is being used by Polish amphetamine 
networks to move drugs to Sweden.  

Health authorities believe that drug abuse is growing, but they 
have only begun to collect data on the problem.  Most drug abuse 
appears to be of injectible poppy straw extract.  

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  The Lithuanian government (GOL) is concerned 
about drug problems, but lacks the resources or expertise to deal 
with them.  The GOL is establishing a task force to coordinate its 
efforts.  Moreover, the GOL is currently drafting new antidrug 
legislation to increase penalties for drug trafficking and other 
related crimes.  Police have also continued minimal eradication 
efforts and destroyed about 3 ha of opium poppy fields in 1992. 

Corruption.  The USG is unaware of any reports of official 
narcotics-related corruption in Lithuania.  

Agreements and Treaties.  The GOL is not a party to the UN drug 
conventions.  The GOE's domestic antidrug law must be modified 
before the GOE can become a party to the 1988 Convention.  The GOE 
is working with UNDCP to identify the legislative changes needed.

Cultivation and Production.  Cultivation of poppy is illegal in 
Lithuania, but officials find it difficult to enforce this ban 
because of the widespread use of poppy for cooking purposes.  
Officials also note that poppy is cultivated to produce illicit 
poppy straw extract.

Demand Reduction Programs.  The GOL has begun to establish a new 
health program including demand reduction.  It will include 
rehabilitation as well as public awareness.  

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  The USG promotes increased GOL attention to 
the drug problem.  Moreover, the USG also will promote antidrug 
cooperation by nations in Western Europe most directly affected by 
heroin smuggling through the Baltic nations.  The USG is 
encouraging support from the UNDCP to assist Estonian, Latvian, 
and Lithuanian Customs and Police by providing detection equipment 
and training.  

Bilateral Cooperation.  In 1992, the USG opened a counternarcotics 
dialogue with each of the new Baltic governments focussed on 
identifying existing problems, possible areas for assistance, and 
the need to accede to the UN drug conventions.  

The Road Ahead.  The USG will continue to encourage the Baltic 
governments to expand their drug control activities, and to 
establish the necessary legislative and institutional antidrug 
framework.  An implementation manual for the 1988 UN Convention 
prepared by the DOJ has been forwarded to the Baltic governments.

The USG plans to contribute $400,000 in FY 1993 to Eastern Europe 
and the Baltics through the UNDCP, as well as some bilateral law 
enforcement training.  During 1993, U.S. Customs is planning to 
conduct in-country drug interdiction training programs for drug 
enforcement officers in Estonia and Latvia.  
(###)

BELARUS

I.  Summary

Drug trafficking groups are expanding smuggling operations through 
Belarus and domestic drug use is reportedly increasing.  
Traffickers seeking new routes to Russia and Western Europe are 
moving heroin, hashish, and opium from Afghanistan and Pakistan by 
rail.  Health authorities believe that this transit trade is 
fueling an already extensive domestic drug market.  There is some 
cultivation of opium poppy in Belarus, although the extent is not 
known.      The Government of Belarus (GOB) has noted its concern 
about the increased drug threat, but has not yet devoted high-
level attention to the problem.  There has only been limited 
progress in enacting a comprehensive antidrug strategy, and 
possession of drugs for personal use is legal.  Nevertheless, 
Belarus has become a party to all international drug conventions, 
including the 1988 UN Convention.  While Belarus has made only 
limited progress in meeting the goals and objectives of the 1988 
UN convention, efforts are underway to change domestic legislation 
to promote its implementation through pending antidrug 
legislation, which will make possession of small quantities of 
drugs for personal use illegal and increase penalties for drug 
trafficking.  To fully implement the Convention, the GOB inter 
alia will have to increase efforts to target trafficking 
operations, eradicate drug crops, and establish effective controls 
to monitor chemical shipments and banking transactions.

II.  Status of Country 

Drug smuggling operations have adapted rapidly to exploit open 
borders and reduced transit controls in Belarus to smuggle hashish 
and opium from Southwest Asia.  According to Russian authorities, 
Afghan heroin and hashish transiting Belarus is now being seized 
in Western Europe, Canada, and Russia.  Most information on the 
extent of such trafficking is anecdotal, however.  

Local authorities are increasingly worried about the impact of 
increased drug trafficking.  Drug-related crime has risen 
significantly over the past year and police officials indicate 
that one out of every three crimes is drug-related.  In addition, 
drug use, particularly of opiates, appears to be rising.  

Currently, the biggest drug challenge for Belarus is from home-
grown opium poppy which has traditionally been cultivated both for 
cooking and for illicit opium poppy straw production.  This home-
grown poppy is converted to an injectible poppy straw extract 
which health authorities believe is used by 70 percent of the drug 
users in Belarus.  

Small, organized gangs control most of the local drug activities 
in Belarus, according to police officials.  In addition, there is 
some speculation that Central Asian drug groups have become 
entrenched in Belarus.  

There are no reports of drug money laundering or the diversion of 
chemical exports, but officials acknowledge they have made little 
effort to monitor such activities.

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  The GOB has not yet formulated any long-range 
antidrug plans but has proposed the creation of an interagency 
committee to coordinate antidrug efforts.  In addition, a 
coordinating bureau to draft the new antidrug legislation was 
formed with the Prime Minister's support, underscoring the GOB's 
concern about drugs and drug-related crime.  This bureau has 
drafted tough antidrug legislation, which is now before 
Parliament.

Law Enforcement Efforts.  Although its resources are limited, the 
Ministry of Interior has expanded its interdiction and eradication 
efforts this year.  The 41 drug police seized over 200 kg of poppy 
straw and eradicated over 20,000 square meters of poppy and 
cannabis in 1992.  Police, however, believe that the legal code, 
which allows the possession of small quantities of drugs for 
personal use, is inhibiting drug seizures. 

Corruption.  The USG does not have any reports of high-level 
narcotics-related corruption in Belarus.

Agreements and Treaties.  The GOB is a party to the 1988 UN 
Convention, the 1961 Single Convention on Narcotic Drugs and the 
1972 Protocol thereto, and the 1971 UN Convention on Psychotropic 
Substances.  The GOB is modifying its antidrug law to implement 
the 1988 UN Convention.  Effective implementation will require, 
inter alia, stricter controls on narcotics trafficking and 
production, more effective law enforcement, and imposition of 
criminal penalties for narcotics possession.   Cultivation and 
Production.  The GOB continues to outlaw poppy cultivation.  
Officials believe, however, that there is continued cultivation of 
poppy for traditional cooking uses and for opium poppy straw 
production.  Press reports continue to claim that extraordinarily 
large poppies grow in the area adjacent to Chernobyl in Ukraine.  
UN officials recently visited these sites and disputed the claims.   
Demand Reduction Programs.  The GOB's demand reduction campaign 
has focused primarily on treatment.  There are inpatient 
facilities for over 2,000 addicts across the country and over 15 
outpatient facilities.  Health authorities indicate the need for 
increased emphasis on prevention and education.

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  In 1992, the USG 
opened a counternarcotics dialogue with Belarus to urge increased 
attention to the drug issue.  Initial efforts have focussed on 
identifying existing problems, possible areas for assistance, and 
the need to implement the UN drug conventions.  Moreover, the USG 
is promoting antidrug cooperation by those nations, primarily in 
Western Europe, most directly affected by heroin smuggling through 
Belarus.

Against this backdrop, the USG provided INM-funded assistance 
through the DEA and the U.S. Customs Service for Belorussian law 
enforcement and customs officials to participate in a regional 
advanced drug enforcement school, a seminar on precursor and 
essential chemical controls held in Warsaw last May. 

The Road Ahead.  The USG will continue to encourage the GOB to 
expand its drug control activities and to establish the necessary 
legislative and institutional capabilities.  During 1993, the USG 
will focus its support on urging Belarus to implement the 1988 UN 
Convention.  A compliance manual for the 1988 UN Convention 
prepared by the DOJ is being translated into Russian and will be 
forwarded for this purpose.  The Financial Action Task Force and 
UNDCP, with USG encouragement, plan to conduct a regional seminar 
to counter money laundering in Moscow in 1993.  
(###)

BELGIUM 

I. Summary 

Belgium is an increasingly significant entry and transit point for 
heroin, cocaine, marijuana, and hashish destined for Europe.  
Belgium enacted comprehensive money laundering legislation in 1990 
and anticipates that 1992 drug investigations will provide the 
foundation for drug money laundering prosecutions in 1993.  
Belgian justice and police organizations aggressively pursue drug 
trafficking and money laundering.  Belgium recently passed a law 
establishing a new unit to investigate suspicious currency 
transactions reported by financial institutions. 

The Government of Belgium (GOB) has revised its legislation 
regulating export of essential and precursor chemicals to conform 
with the EC's chemical control legislation.  Legislation to ratify 
the 1988 UN Convention is before the Parliament and is expected to 
be adopted by the end of 1993.  Belgium is a contributing member 
to the UNDCP and participates in the Heads of European Narcotic 
Law Enforcement Agencies meetings (HONLEA), the European Committee 
to Combat Drugs (CELAD), the Dublin Group, and other international 
drug control organizations.

II. Status of Country

Authorities believe Belgium is a significant drug threat as 
evident in increased drug seizures and the significant number of 
Belgians convicted of drug crimes.  In addition, drug-related 
deaths almost doubled from about 50 in 1988 to 93 in 1991.  
Belgian authorities have seen the emergence of LSD on the domestic 
drug market, while amphetamine and barbiturate abuse continues.  
The Belgian Police estimate that approximately 10,000 Belgian 
youth abuse the synthetic drug "ecstasy".

Belgian authorities believe that the country will continue to be a 
transshipment point for drugs due to its location, excellent 
seaports and airports, and its role as a major financial center.  
Brussels has the potential to become a money laundering center as 
a result of a legal system which restricts the use of undercover 
investigatory techniques in money laundering cases. 

III. Country Actions Against Drugs in 1992 

Policy Initiatives. The GOB continues to strengthen its laws 
against drug trafficking.  The Belgian judicial and enforcement 
systems are aggressively pursuing drug traffickers, although these 
efforts are complicated by Belgium's legal system which restricts 
the use of undercover operations. 

Law Enforcement Efforts.  This was a critical year for Belgian 
authorities in identifying, investigating, and arresting 
significant cocaine traffickers and for better understanding the 
scope of the Belgian cocaine problem.  GOB 1992 estimates show 
cocaine seizures of approximately 1,200 kg--nearly double that of 
1991. Although a substantial portion was to be transshipped to the 
Netherlands and Germany, significant amounts appear to have been 
destined to remain in Belgium. 

Belgian authorities arrested several traffickers working for the 
Cali cartel.  Investigations show that cartel traffickers were 
responsible for several tons of cocaine shipments to Belgium over 
the past several years and, in addition, have laundered drug money 
back to Colombia. 

Corruption.  Official corruption is not a problem in Belgium.

Drug Flow/Transit.  As noted above, Cali cartel traffickers have 
been responsible for significant shipments of cocaine to Belgium 
over the past several years.  Heroin trafficking continues to be 
controlled by Turkish nationals working with Nigerian heroin 
couriers transiting the Zaventem Airport.  Belgian authorities 
seized 107 kg of heroin in 1992, less than seized in 1991. 

Agreements and Treaties.  Belgium has not yet ratified the 1988 UN 
Convention but expects to do so during 1993.  Belgium is a party 
to the 1961 Single Convention and its 1972 Protocol.  The GOB took 
a critical step in 1992 in strengthening its laws against money 
laundering by adopting legislation requiring disclosure by 
financial institutions of information on financial transactions 
exceeding 10,000 ECU.   The USG and the GOB have an extradition 
treaty.  They also have negotiated a mutual legal assistance 
treaty.

IV. U.S. Policy Initiatives and Programs

Policy Initiatives. The USG bilaterally and in various 
multilateral fora, such as the Dublin Group, will continue to 
encourage the GOB's efforts to strengthen Belgian laws and 
programs to facilitate the extradition of traffickers and drug 
money launderers and to ratify the 1988 UN Convention. 

The Road Ahead.  The USG anticipates continued excellent working 
relationships with GOB law enforcement authorities and Belgium's  
active participation in and support for the UNDCP and other 
international drug control organizations.
(###)

BULGARIA

I.  Summary

Bulgaria's role as a conduit for smuggling Southwest Asian heroin 
grew over the past year, as traffickers expanded routes and 
diversified operations.  In an effort to circumvent improved 
security in West European airports, traffickers, especially 
Nigerian heroin organizations, are now targeting Bulgaria as an 
entry point to the continent. 

The Government of Bulgaria (GOB) expanded its antidrug efforts in 
1992, reflected in increased seizures, the ratification of the 
1988 UN Convention, and a stated policy that the drug trade was no 
longer only a foreign problem. 

II.  Status of Country

While the situation in the former Yugoslavia has forced 
traffickers to shift routes, Bulgaria continues to play a key role 
as a transit area for Southwest Asian heroin.  Bulgaria's central 
location on the Balkan peninsula, and its road and rail networks 
connecting Turkey with Western Europe, make it the most 
significant East European transit country.  The difficulty of 
inspecting the large number of bonded (TIR) trucks that transit 
the "Balkan route" increases Bulgaria's attractiveness to 
traffickers; the Kapitan Andreevo border control post alone is now 
processing up to 1,000 vehicles daily, according to Bulgarian 
officials.  Officials believe that Turkish networks head most of 
the heroin smuggling through Bulgaria.  These networks continue to 
work with Italian, Iranian, and Lebanese drug organizations.  

Other drug trafficking networks are now taking advantage of 
Bulgaria.  Expanding air connections, including direct flights to 
the U.S., Thailand and Nigeria, made Bulgaria vulnerable to 
traffickers seeking to diversify their patterns.  During 1992, at 
least two Nigerian trafficking groups used Bulgaria to smuggle 
heroin from Thailand via commercial flights to the U.S.  The DEA 
reports that Colombians have set up operations to import cocaine 
and obtain essential chemicals for their production labs. 

 There have been no drug money laundering cases discovered in 
Bulgaria since a 1988 heroin money laundering scheme that involved 
Sofia, Istanbul, and Los Angeles.  However, law enforcement 
authorities note that the growing involvement of drug traffickers 
in the country and the lack of strong financial controls make 
Bulgaria susceptible to increased drug money laundering.  

Bulgaria's domestic drug abuse problem is still small, but it is 
increasing as traffickers expand internal distribution networks 
and heroin markets.  Press reports indicate that one-sixth of the 
heroin moving through Bulgaria is for domestic use, and law 
enforcement officials note increasing evidence that heroin use is 
spreading.  In response, health officials have indicated the need 
for a domestic drug abuse treatment and public awareness campaign.

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  Growing concern among Bulgarian officials was 
reflected in several policy changes in 1992.  The most significant 
of these was the ratification of the 1988 UN Convention.  Work is 
now under way to bring Bulgaria's criminal code into line with the 
requirements of the Convention and with those of West European 
nations.  

Law Enforcement Efforts.  The GOB's expanded law enforcement 
efforts included joint investigations with West European nations 
that led to increased seizures in Bulgaria and other parts of 
Europe.  The focal point for the anti-narcotics activities, the 
Central Organization for Combatting Organized Crime and Narcotics 
Trafficking, has increased efforts to target domestic drug 
traffickers.  The Central Organization operates under the Ministry 
of Interior and coordinates the anti-narcotics activities of 
Bulgaria's several police forces and its Customs Service.  This 
office also coordinates investigations on narcotics-related issues 
such as official corruption and money laundering. 

Corruption.  The GOB has expressed its determination to pursue the 
investigation and prosecution of officials engaged in the 
production, processing or shipment of narcotics.

Agreements and Treaties.  In August, the Bulgarian National 
Assembly ratified the 1988 UN Convention.  Bulgaria is also a 
party to the 1961 Single Convention and 1972 Protocol thereto, and 
the 1971 Convention on Psychotropic Substances.  During 1992, 
Bulgaria signed a bilateral antidrug agreement with Germany.

Cultivation and Production.  Opium poppies are grown in small 
quantities throughout Bulgaria for use in home remedies and for 
brewing poppy straw tea.  Opium poppies are also licitly 
cultivated under GOB control.  Clandestine laboratories inside 
Bulgaria produce large amounts of the stimulant Captagon.  
Diversion of legitimately produced Mesocarb may also be a problem.  
The GOB made production of Captagon illegal in 1992.  

Demand Reduction Programs.  The GOB is expanding its antidrug 
activities, but these efforts are still in the beginning stages.  
Moreover, limited resources have constrained the GOB's ability to 
be more active against drugs.  Nevertheless, the GOB's stated 
willingness to increase international antidrug law enforcement 
cooperation and to bolster public awareness of the drug threat 
likely to result in more concrete achievements next year.

IV.  U.S. Policy Initiatives and Programs

The USG continues to promote increased attention to the drug 
problem by the GOB and by West European nations most directly 
affected by heroin trafficking through Bulgaria.  The USG's 
primary objective during 1992 was to urge GOB ratification of the 
1988 UN Convention.

Bilateral Cooperation.  The USG continued its cooperation with 
Bulgaria's counternarcotics agencies.  This was accomplished 
through training of 25 Bulgarian customs officers in narcotics 
interdiction by the U.S. Customs Service; USIS International 
Visitor grants to send Bulgarian officials to the U.S.; an INM-
sponsored Executive Observation Program for a senior Bulgarian 
official from the Central Organization; and a visit of DEA experts 
on money laundering and cocaine trafficking, which included 
discussions with senior banking officials and workshops for nearly 
60 police, customs and banking officials.  In addition, INM 
provided $2,000 to the Central Organization for narcotics test 
kits and equipment. 

The Road Ahead.  The biggest challenge confronting Bulgaria will 
be the continuing expansion of the heroin trade into and through 
the country.  The USG will continue to encourage the GOB to 
bolster its antidrug campaign and to promote cooperation by those 
nations, primarily in Western Europe, most directly affected by 
heroin smuggling through Bulgaria.  In addition, the USG also will 
continue to encourage support from the UNDCP to assist Bulgarian 
Customs and Police with detection equipment and training.

During 1993, the USG will focus bilateral support on assisting 
Bulgaria to develop the necessary legal infrastructure to 
implement the 1988 UN Convention to effectively fight narcotics 
trafficking.  A compliance manual prepared by the DOJ has been 
forwarded to the GOB for this purpose.  In addition, INM will 
provide law enforcement and demand reduction training, and 
equipment to assist Bulgaria's antidrug campaign.  

[Chart - Bulgaria 1993 Statistical Tables
(###)

CYPRUS

I. Summary

Cyprus' location, together with its well-developed commercial and 
tourism facilities, makes it an attractive meeting point for 
traffickers.  Heroin transits Cyprus by container cargo and air to 
and from Europe.  The Government of Cyprus (GOC) continues to 
adopt and strictly enforce strong laws in accordance with the 1988 
UN Convention.

II. Status of Country

Cyprus is not a producer or significant consumer of narcotics, but 
its location and its status as the gateway to and from Lebanon 
make it a convenient transit point for traffickers, especially 
from Lebanon and Turkey.  The island's highly developed business 
and tourism infrastructure attracts traffickers who negotiate 
deals, conceal heroin and cannabis products in the substantial 
container traffic transshipped through Cyprus, and take advantage 
of air connections to move currency and bullion to and from 
Europe.

Cyprus is neither a significant producer nor importer of precursor 
or essential chemicals but it has a system of voluntary chemical 
controls.

Cyprus' system of controls on the movement of gold and currency 
discourages the development of a financial haven.  The Central 
Bank's monitoring of monetary activities helps prevent widespread 
drug-related money laundering.  Cypriot officials do not have any 
evidence that such operations are taking place.

III. Country Actions Against Drugs in 1992

Policy Initiatives.  The GOC passed stricter laws in accordance 
with the 1988 UN Convention, which was ratified in 1990.  In 
March, the GOC amended the law on narcotic and psychedelic 
substances, establishing criminal penalties for drug users, and 
providing stiffer sentences for drug traffickers.  In May, the 
Parliament passed a bill allowing for the confiscation of drug-
related profits and the freezing of profits or a special 
investigation of the suspect's financial records.

Cyprus signed a bilateral narcotics control agreement with 
Czechoslovakia to combat organized crime and illegal drug 
trafficking.

Accomplishments.  In January, President Vassiliou gave the opening 
address at a GOC-sponsored workshop on the prevention of drug 
abuse.  At the close of the conference, the GOC elected to form a 
council to promote drug prevention in Cyprus.

Law Enforcement Efforts.  Narcotics laws are strictly enforced.  
In most cases, the judicial process operates effectively.  
Authorities closely cooperate with the USG and other law 
enforcement authorities in the exchange of law enforcement 
information and maritime enforcement activities.  In September, 
Cypriot authorities assented to the USG's request to search a 
Cypriot-registry vessel boarded by the U.S. Coast Guard in 
international waters.

Drug use and trafficking are illegal in Cyprus.  Although drug-
related sentences were relatively light in the past, mainly 
consisting of fines, the majority of current sentences consist of 
prison terms, ranging from several months to eight years, 
depending on the quantity of drugs involved.

Narcotics control is the responsibility of the Cyprus Police Force 
and the Cyprus Customs and Excise Department.  The level of 
cooperation between these GOC agencies and the fourteen foreign 
narcotics enforcement representatives in Cyprus is good.

Cyprus law enforcement authorities' efforts to prevent the 
transshipment of heroin and cannabis products through Cyprus 
involve stricter checks at all points of entry, including the use 
of drug detector dogs and better surveillance.

International enforcement cooperation is limited by the de facto 
division of the island into a government-controlled area and a 
northern Turkish-speaking area.  The Cypriot enforcement 
authorities have no direct working relations with Turkish-Cypriot 
enforcement authorities or with Turkey.

Corruption.  Corruption is not considered to be a major problem in 
Cyprus.

Cultivation and Production.  The only known production is the 
occasional cultivation of cannabis for individual use.

 Agreements and Treaties.  The GOC is a party to the 1988 UN 
Convention.  By the actions described above, it is generally 
meeting the goals and objectives of the Convention.  Cyprus is 
also a party to the 1961 UN Single Convention and its 1972 
Protocol, and the 1971 UN Convention on Psychotropic Substances.  
The U.S. and Cyprus have a mutual assistance agreement between 
their customs services dating from 1987.

Demand Reduction Programs.  The GOC encourages demand reduction 
and drug abuse prevention.  The Cyprus Rotary Clubs, supported by 
the GOC, police, and local businesses, maintain a drug-awareness 
campaign aimed at Cypriot youth.  In May, the U.S. Ambassador 
conducted the opening ceremony for a new branch of PRIDE in 
Limassol.

IV. USG Policy Initiatives and Programs

Policy Initiatives.  The USG encourages Cypriot officials to 
enhance or implement laws relating to undercover operations, 
electronic surveillance, controlled deliveries, and asset 
seizures.  Officials have made progress in this area, such as the 
new law allowing the confiscation of drug-related profits, and 
better use of surveillance at points of entry into the country.  
Recently, the GOC has drafted legislation related to controlled 
deliveries in undercover operations.

Bilateral Cooperation.  GOC authorities honor a 1931 extradition 
treaty with the U.S. which remained in force after Cypriot 
independence.  In March, a Lebanese sought on trafficking charges 
was extradited to the U.S. 

The 1987 U.S./Cyprus Customs Mutual Assistance Agreement has 
promoted excellent cooperation between the two countries' customs 
and excise authorities.  The USG initiated bilateral discussions 
in 1991 to further amend the agreement to facilitate the sharing 
of assets resulting from customs seizures.  Several GOC ministries 
are now reviewing the proposed amendments. 

The Road Ahead.  The USG looks to continued cooperation from 
Cypriot enforcement officials and will encourage the GOC to enact 
legislation that will enhance Cypriot law enforcement efforts. 

[Chart - Cyprus 1993 Statistical Tables]
(###)

CZECH AND SLOVAK FEDERAL REPUBLIC*

* Note: The Czech and Slovak Federal Republic formally became two 
separate governments on December 31, 1992.  This report covers the 
period when the two countries were still united.

I. Summary

Political changes over the past several years left the Czech and 
Slovak Federal Republic (CSFR) vulnerable to heroin traffickers 
seeking new routes between Southwest Asia and Western Europe.  
This was reflected in the ten-fold increase in heroin seizures 
between 1991 and 1992, most destined for Western Europe.  CSFR 
authorities also continued to interdict numerous couriers headed 
West with small quantities of cocaine.

 The CSFR also emerged as a significant producer of illegal 
amphetamines.  Trafficking groups expanded domestic Czech and 
Slovak drug markets and recruited  couriers from the CSFR.  The 
authorities believe that drug traffickers may target the CSFR 
banking industry to launder funds as well. 

The Government of the Czech and Slovak Federal Republic (GOCSFR) 
has been very active in drug control and was one of the first East 
European nations to establish antidrug cooperation with Western 
Europe and the U.S.  Although the division in 1992 of the CSFR 
into independent Czech and Slovak republics diverted government 
attention, interdiction operations and demand reduction efforts 
continued.  

II.  Status of Country

Political changes and the relaxation of border controls have made 
the CSFR more vulnerable to the international drug trade.  Turkish 
and other heroin traffickers seeking new routes around the former 
Yugoslavia and into Western European markets increasingly have 
been attracted to the CSFR.  Investigations also have revealed a 
number of East European drug rings, including several from the 
CSFR.

South American cocaine traffickers have been establishing a 
foothold in the CSFR.  Authorities made several record cocaine 
seizures in 1991 and noted an increase in the number of couriers 
attempting to smuggle small quantities of cocaine through 
airports.

Traffickers intensified efforts to expand their operations, 
exploiting the collapse of totalitarian rule in 1989 and the 
relaxation of controls on chemicals used in the manufacture of 
illicit drugs.  Combined with the CSFR's large chemical and 
pharmaceutical industry, this has prompted increased illicit 
amphetamine production; several laboratories were discovered in 
1992.  Authorities suspect that the chemical industry also may be 
a source for precursor and essential chemicals.  CSFR officials 
suspect that Italian and other organized crime groups are 
laundering drug money in the CSFR.

Health authorities noted a rise in domestic drug abuse in 1992.  
Registered drug addicts numbered some 4,000 in 1991; but the 
number may be closer to 20,000 in 1992.  Amphetamines and cannabis 
products were the most widely used drugs in 1992, but there was a 
rise in heroin and cocaine use as well.

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  The CSFR's antidrug efforts suffered several 
setbacks because of the domestic political situation.  Efforts to 
develop a new chemical control regime broke down in a dispute over 
whether the republics or the federal government would institute 
controls.  Moreover, the CSFR Narcotics Commission was abolished 
in the division of the federation. 

Some of the narcotics control activity begun under the CSFR 
regime, however, laid the foundation for drug strategies in the 
new republics.  The CSFR sought to establish domestic legislation 
to implement the 1988 UN Convention.  The draft penal code is 
expected to be adopted by the two successor republics and includes 
a number of articles directed against narcotics production and 
trafficking.  The penalties are particularly severe in cases 
involving conspiracy, organized crime, sales to minors, and drug 
sales that result in injury or death.  However, convictions of 
those charged with drug-related offenses can be difficult because 
possession for personal use is not a crime, and the law does not 
define possession or trafficking.

Law Enforcement Efforts .  Heroin seizures rose from 10 kg in 1991 
to 133 kg in 1992.  Drug-related prosecutions also increased from 
60 in 1991 to 76 in the first six months of 1992.

The CSFR in 1992 participated in the Council of Europe's Pompidou 
Group and the Customs Cooperation Council (CCC).  The CSFR is a 
member of the Financial Action Task Force and the UN Commission on 
Narcotic Drugs (CND).  The Czech Republic plans to assume the 
CSFR's seat on the CND and in Interpol.  

Cooperation between the CSFR and German police led to increased 
drug seizures in the CSFR and abroad.  The CSFR also had extensive 
discussions with Russia about increasing cooperation to target 
organized crime groups from the former Soviet Republics.  

Corruption.  The USG does not have reports of serious narcotics-
related corruption in the former Czech and Slovak Federal Republic 
or in the new republics.  

Agreements and Treaties.  The GOCSFR ratified the 1988 UN 
Convention in 1991.  It is a party to the 1961 Single Convention 
on Narcotic Drugs, the 1972 Protocol thereto, and the 1971 UN 
Convention on Psychotropic Substances.  Both successor states have 
stated their intention to honor all obligations and treaty 
commitments of the former CSFR, including the extradition treaty 
with the U.S.  The UN expects the successor republics to honor the 
specific obligations of the conventions.

The two new republics are also expected to continue bilateral 
antidrug agreements established under the CSFR with the U.S., UK, 
France, and Germany, as well as with the EC's association 
agreement, which includes provisions for antidrug cooperation and 
assistance.  

Cultivation and Production.  Authorities believe that illicit 
amphetamine production is extensive, but data is limited. 

Demand Reduction Programs.  Although there are several demand 
reduction and treatment clinics in the CSFR, most are located in 
Prague or other parts of the Czech Republic.  According to press 
reports, there is an increasing need for more demand reduction 
programs in Slovakia.  

It is unclear how the division of the CSFR will affect the 
antidrug efforts in the two new republics.  The CSFR has received 
commitments of assistance from several West European countries as 
well as from the EC and the UNDCP, but this has been deferred 
until the division of the two republics is completed.  The UNDCP 
plans to provide $670,000 in equipment for the Police and Customs 
Service and forensic laboratory equipment.  The EC's assistance 
will be primarily for training and technical assistance to adapt 
CSFR legislation to EC standards. 

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  The USG continues to promote increased GOCSFR 
attention to the drug problem as well as  Western European support 
for its efforts.  INM also contributed $200,000 to UNDCP to assist 
the former CSFR's customs and police with detection equipment and 
training.  

In 1992, the USG increased bilateral cooperation with the CSFR 
with assistance from DEA and U.S. Customs for CSFR participation 
in various INM-funded seminars and training programs.  The FATF 
conducted two seminars for policy makers on countering money 
laundering that include participants from the two republics.  
USAID funded a study of the demand reduction requirements.

The Road Ahead.  The USG will encourage the governments in Prague 
and Bratislava to focus on the drug problem, expand drug control 
and demand reduction activities, and establish necessary 
legislative and institutional capabilities.  The USG also will 
urge the new republics to implement the 1988 UN Convention.  A 
compliance manual for the 1988 UN Convention prepared by the DOJ 
has been forwarded to both governments. The USG will continue to 
provide limited law enforcement and demand reduction training and 
equipment to assist both governments in their antidrug campaign.  
(###)

DENMARK

I. Summary

Denmark's excellent transportation facilities make it a hub for 
drug traffic to the Nordic area.  Danish officials are concerned 
that narcotics abuse may be growing.  Government officials 
estimate there are approximately 10,000 addicts.  There were 188 
drug-related deaths in 1991, an increase of 64% from 1990.  The 
main drugs of abuse are hashish and heroin.  As elsewhere in 
Europe, Danish government officials are also concerned about 
increased use of the synthetic drug "ecstasy."

Danish officials are actively involved in domestic and 
international narcotics control fora.  Denmark works effectively 
with the U.S. to limit drug trafficking.  The Danish government 
introduced new money laundering legislation to implement EC 
directives to prevent the use of the local financial system for 
money laundering.  Denmark has been a party to the 1988 UN 
Convention since 1991.

II. Status of Country

As Scandinavia's only land border within Western Europe and given 
its role as the hub of Nordic air and sea transportation, Denmark 
serves as the entry point for illicit drugs into Scandinavia.  
Most of the illicit drug traffic is destined for either the 
domestic Danish market or for transit to other Nordic countries.  
Copenhagen also serves as a transit point for heroin from 
Southwest Asia to other West European countries and the U.S. and 
as a transit point for South American cocaine destined for other 
points in Europe.  Danish authorities do not have statistics on 
the amount of drugs which transit Denmark.

We have no evidence that Denmark is a money laundering center, 
despite its status as a major international financial center.

Corruption among Danish government officials is not widespread nor 
found at senior levels.

III. Country Actions Against Drugs 

Policy Initiatives.  The Danish government is creating a group to 
work with chemical producers to establish a voluntary program to 
ensure that precursor and essential chemicals do not reach illicit 
drug manufacturers.  The program will permit Denmark to meet the 
requirements of the EC's chemical regulation and the 1988 UN 
Convention goals and objectives for stemming the illicit trade in 
precursor chemicals.

Law Enforcement Efforts.  Danish authorities reportedly seized 40 
kg of cocaine and 31 kg of heroin in 1991, an increase of 38 and 
15 percent over seizures in 1990.  Customs inspection of persons 
and goods entering Denmark is minimal.  Changes in the rules on 
the movement of people and goods which took effect in the European 
Community (EC) on January 1, 1993, have made customs inspections 
even more lax for traffic from the other EC countries.  In 1992, 
Danish law enforcement authorities did arrest approximately 52 
heroin traffickers, successfully prosecuted a Danish group 
importing heroin from Thailand (resulting in 17 convictions), and 
broke up an amphetamine lab.  

Danish law permits asset forfeiture and seizure in drug-related 
criminal cases.  However, this is limited to the proceeds of the 
crime; businesses cannot be seized.  Danish law enforcement 
officials aggressively enforce existing asset seizures and 
forfeiture laws, but no data on asset seizures are available.  The 
state treasury keeps proceeds from asset seizures, and Danish law 
does not permit sharing of assets with other countries.

Demand Reduction Programs.  The Danish government offers voluntary 
demand reduction and treatment programs for drug addicts.  Most of 
the programs are for outpatient care.  There are approximately 
eight drug treatment centers in Copenhagen as well as several 
private care facilities.  The Danish government also periodically 
conducts drug awareness campaigns aimed at youths.

Drug Flow/Transit.  Copenhagen serves as a transit point for 
Southwest Asian heroin and for South American cocaine to Western 
Europe and the U.S.  Most of the illicit drugs seized in Denmark 
are found at the Copenhagen airport.  However,  some heroin from 
Southwest Asia is transported via the Balkan route in bonded and 
sealed cargo trucks through the Netherlands to Denmark.  Hashish 
originates in Lebanon or Morocco and transits the Netherlands on 
its way to Denmark.  In addition, drug traffickers use ferries 
from Poland to Copenhagen.  Government officials believe 80% of 
the amphetamines seized in Denmark are produced in the 
Netherlands, with a smaller amount originating in Poland.

Agreements and Treaties.  Denmark is a party to the 1988 UN 
Convention and participates in EC antidrug efforts.  By the 
actions noted above, Denmark has generally met the goals and 
objectives of the Convention.  Denmark is also a party to the 1961 
Single Convention and its 1972 Protocol, and the 1971 Convention 
on Psychotropic Substances.  The USG and the Danish government 
have an extradition treaty, as well as an agreement to exchange 
narcotics trafficking information, dating from 1928.

IV. U.S. Policy Initiatives and Programs 

The USG seeks to build on its already good working relations and 
cooperation with the Danish government.  The USG will continue to 
encourage the Danish government to participate actively in 
international efforts to stem the traffic in narcotics.

The Road Ahead.  The USG looks forward to close Danish government 
cooperation in law enforcement.  The USG will encourage the Danish 
government to pass laws allowing for the sharing of seized assets 
with third parties, and encourage continued Danish government 
support for the UNDCP. 
(###)

FINLAND

I. Summary 

Modest narcotics trafficking to Finland supplies the domestic 
addict population and transit to third countries.  The Finnish 
government (GOF) has a good record in enforcing its narcotics laws 
which cover most offenses except money laundering.  However, GOF 
expect that money laundering legislation will be enacted in early 
1993.  Demand reduction and prevention programs are actively 
pursued by the government.  The USG supports Finnish narcotics law 
enforcement and provides some training.  The Finns are training 
Estonian officials in drug control techniques. 

II. Status of Country 

Finland produces neither narcotics nor essential or precursor 
chemicals.  Its small but growing transit and consumption problems 
are due in part to increased flows from the former Soviet Union.  
The principal sources of illicit drugs are South America and Asia, 
although amphetamines from Central Europe enter Finland for 
domestic consumption.   Finnish officials have identified 
approximately 2,200 drug addicts.

Most narcotics transiting Finland are destined for Western Europe 
or Russia.  According to police officials, narcotics from the 
former Soviet Union, primarily hashish, supply the local market 
and transit to Central Europe.  There are reports from Albania 
that the Italian Mafia is establishing import/export businesses 
for their smuggling ventures.  Heroin and cocaine, both of which 
have only minor markets in Finland, occasionally transit Finland 
from South America and Asia, an apparent effort to find an easier 
entry point into Western Europe and Russia.

Law enforcement officials believe that some money laundering takes 
place in Finland.  However, money laundering is not yet illegal 
and strict banking secrecy laws prevent financial investigations, 
except when information becomes available as part of a court case 
in a foreign country.  A draft bill is ready to be presented to 
Parliament which will make money laundering illegal and relax 
banking secrecy laws sufficiently to allow financial 
investigations in cases of suspected money laundering.  Finnish 
officials expect that this legislation will be enacted in early 
1993. 

Corruption among public officials does not appear to be a problem 
in Finland.  There are no recorded cases of government officials 
assisting narcotics trafficking. 

III. Country Actions Against Narcotics in 1992

Finland signed the 1988 UN Convention, and its legislation is 
consistent with nearly all the Convention's goals and objectives, 
except the criminalization of money laundering.  The government is 
expected to ratify the Convention by mid-1993.  Existing 
legislation covers the distribution, sale and transport of 
narcotic substances, as well as extradition, law enforcement, 
transit cooperation, essential and precursor chemical control, and 
demand reduction.

Law enforcement is efficient and thorough.  GOF officials arrested 
1,346 persons for drug-related offenses in 1992.  Despite strong 
enforcement efforts by the Finnish Police and the Customs Service, 
the volume of narcotics seized has been low, suggesting that 
trafficking levels are still relatively modest.

The Ministry of Social Affairs and Health demand reduction 
programs emphasize treatment rather than punishment.  The Ministry 
is seeking to develop a joint Nordic approach to narcotics abuse 
treatment. 

IV. U.S. Policy Initiatives and Programs  

The principal focus of USG policy is to enhance Finnish efforts to 
prevent narcotics trafficking and abuse, especially through 
training programs.  In the last three years, Finnish police have 
attended a variety of narcotics-related courses in the U.S. funded 
by INM.  Finnish officials have also attended DEA regional 
seminars, such as the international asset forfeiture and financial 
investigation seminar.  In 1992, the FBI conducted a week-long 
seminar in Helsinki on financial investigations.  Finnish public 
health officials attended the international scientific conference 
on biomedical approaches to illicit drug demand reduction in the 
U.S.  Finnish officials conducted narcotics enforcement training 
for their Estonian counterparts, using their U.S. training as a 
model.  

The Road Ahead.  The USG will continue close cooperation with GOF 
officials, particularly in law enforcement.  The USG considers it 
essential that the GOF ratify the 1988 UN Convention.  The USG 
also will encourage the GOF to continue providing antidrug 
training and assistance to Estonia and other Newly Independent 
States of the former Soviet Union.
(###)

FRANCE

I. Summary 

France is important as a transit country for drugs from the Middle 
East and Southwest Asia.  Vigorous enforcement resulted in 
significant drug seizures by police, including over three mt of 
cocaine seized in 1992.  Cooperation between the French Central 
Narcotics Office (CNO), the DEA, and other international law 
enforcement agencies is good.  Heroin and cocaine use is on the 
rise.  Recent French legislation has facilitated police undercover 
activity, especially in money laundering investigations.  France 
is active in international antidrug organizations, including the 
Financial Action Task Force (FATF) where it served as its first 
president, the Chemical Action Task Force (CATF), and the Dublin 
Group.  It is a contributing member of the UNDCP. 

II. Status of Country

Although France does not produce any significant quantities of 
illicit drugs, trafficking and use are growing problems.  Heroin 
and other drugs enter from the Middle East and Southwest Asia 
destined for internal, European, and North American markets.

France has a significant domestic heroin abuse problem; Government 
of France (GOF) officials estimate there are approximately 120,000 
heroin abusers.  France is also rapidly becoming a market area as 
well as a conduit for cocaine.  French authorities reported 405 
drug overdose deaths in 1991, a sharp increase over the 280 
reported in 1990.  Recently, authorities have been concerned over 
the growing use of the synthetic drug "ecstasy."

Drug-related money laundering is a crime in France.  Some money 
laundering occurs, but the extent is unknown since no statistics 
are available.  A 1990 money laundering law requires French banks 
to report all suspicious transactions.  France's asset seizure law 
is considered one of the strongest in Western Europe since it 
allows authorities to seize all of a convicted trafficker's 
assets, including those legally obtained.

The manufacture and cultivation of illicit drugs is not considered 
a major problem in France.  One heroin laboratory was seized in 
southern France in 1992.

France produces licit amphetamines and some precursor and 
essential chemicals used in their manufacture.  The manufacture of 
all amphetamines is closely regulated.  As a producer of chemicals 
subject to illicit diversion, France has been an active member of 
the G-7 CATF, including chairing its working group to draft legal 
and regulatory measures to counter diversion.  As an EC member, 
France was obliged to adopt the EC chemical regulation on January 
1, 1993, which includes mandatory controls.

Narcotics-related corruption is not a problem in France.

III. Country Actions Against Drugs in 1992

Policy Initiatives.  The National Assembly is increasingly 
interested in drug control matters, primarily as a result of its 
Finance Committee's concern with criminal activity in France.  The 
French Parliament supports an annual Paris conference on drugs and 
crime.  Antidrug legislation enacted in December 1991 allows for 
limited undercover investigations, which had been constrained by 
French "agent provocateur" laws.

In December 1991, the French Senate passed  legislation 
authorizing police and customs to use limited undercover 
techniques in money laundering operations and drug investigations 
with judicial consent.  Enforcement officials find the new 
legislation an improvement, but feel the consent requirement 
seriously hinders investigative capabilities.  The French 
investigative unit in charge of money laundering crimes (TRACFIN) 
comes under the Ministry of Finance.

In 1991, France contributed over $1.7 million to the UNDCP (the 
latest available figure).  In addition, the GOF has provided 
bilateral antidrug assistance to the Andean region.  However, most 
of its international narcotics control programs concentrate on 
Francophone Africa.

Law Enforcement Efforts.  The GOF has strengthened its penalties 
for traffickers and increased its budget for law enforcement.  
Maximum penalties for drug trafficking are up to 40 years.  French 
authorities arrested 39,760 persons for drug-related offenses in 
1991.  French police officials believe that they interdict 
approximately ten percent of the heroin smuggled into France.  
French police and customs authorities work closely with each other 
to control the transshipment of drugs, mainly through surveillance 
at all entry points into the country, and information-sharing 
among French and international law enforcement agencies.

Cocaine seizures and arrests were up in 1992.  Authorities seized 
613 kg of cocaine, the single largest cocaine seizure ever in 
France.

Drug Flow/Transit.  Heroin is shipped from Pakistan, India, Sri 
Lanka, Lebanon, and Syria through France destined for North 
America and other parts of Europe.  Much of the heroin enters 
France in bonded (TIR) cargo trucks from the Balkans or by 
couriers traveling by air.  The percentage that actually reaches 
the U.S. is unknown. 

France is a growing transshipment point and a consumer market for 
cocaine from South America.  Colombian cartels distribute their 
product through Italian criminal groups in southern France, near 
the borders of Spain, Italy and Switzerland.  Most of the cocaine 
is smuggled into France by ship and commercial aircraft.

France has also been a transshipment country for hashish 
originating in Southwest Asia, Lebanon, Northern Africa (Morocco), 
and Pakistan.  The hashish is destined for other European 
localities, Canada, and for internal consumption.  

Demand Reduction Programs.  Traditionally, France has emphasized 
health issues over enforcement and has one of the most extensive 
demand reduction programs in Europe.  There are approximately 145 
special centers for the treatment and rehabilitation of drug 
addicts, as well as five hospital wards and 58 post-treatment 
centers.  The General Delegation on the Fight Against Drugs and 
Addiction (DGLDT) is the lead agency responsible for demand 
reduction efforts.  It has an annual budget of approximately $50 
million.  It hosted a well-attended November 1992 symposium at 
UNESCO on drug addiction and prevention.

Agreements and Treaties.  The GOF has pursued various antidrug 
initiatives that are consistent with the goals and objectives of 
the 1988 UN Convention.  France complies with the International 
Narcotics Control Board recommendations and reports all licit 
narcotics production.  The U.S. and France have a 1927 agreement 
to exchange information regarding drug trafficking, a 1971 
agreement for coordinating action against illicit drug 
trafficking, and extradition agreements dating from 1909 and 1970.

IV.  U.S. Policy Initiatives and Programs 

Counternarcotics cooperation between the GOF and the USG is good, 
particularly in demand reduction and law enforcement.  The USG 
encourages the GOF to continue its efforts domestically and 
internationally through such fora as the Dublin Group, FATF, CATF, 
and UNDCP.  Through these organizations and bilateral 
consultations, the USG encourages greater GOF assistance in the 
major producing and transit countries, especially in areas where 
they have particular national interests and influence, such as the 
Caribbean, Francophone Africa, and the Middle East.

The USG has not shared forfeited assets with France.  However, the 
USG considers it important for the GOF to develop legislation that 
would permit the sharing of assets with third parties for 
cooperative efforts in prosecuting drug-related cases.

The Road Ahead.  The USG will continue to work with the GOF to 
build on already close cooperation.  The USG looks forward to 
France's continued active participation in the Dublin Group, where 
it holds the regional chair for the Caribbean, the FATF, the CATF, 
and its continued support of UNDCP. 

The USG will offer the French police opportunities to attend 
courses on money laundering and narcotics in specialized training 
schools, and increase their appreciation of U.S. narcotics laws.  
It will encourage the authorities to monitor the activities  of 
"French connection" heroin traffickers residing in France who 
might have resumed their activities. The USG also will attempt to 
develop mechanisms for sharing intelligence information with the 
French military port authorities on suspected traffickers and drug 
shipments to the U.S.

We will encourage the French CNO and the financial unit to work 
with DEA and U.S. Customs in developing intelligence in suspected 
drug money laundering cases that have a direct impact on the U.S.  
And we will urge legislation that will permit the seizure of 
monies derived from illicit drug trafficking as well as a USG-GOF 
agreement on sharing seized and forfeited assets. 
(###)

GERMANY

I. Summary

The Federal Republic of Germany (FRG) increasingly is affected by 
narcotics trafficking.  Overdose deaths reflect the expanding 
domestic market for illicit drugs.  Germany's federal and state 
governments have moved to combat drug abuse on several fronts, 
following the promulgation in 1990 of a comprehensive national 
program on drug abuse control.  In 1992, the number of drug 
therapy sites in the FRG increased by 18 percent.  The FRG 
legislature passed an organized crime law that made money 
laundering illegal, permitted the seizure of illicit assets, and 
widened the application of existing narcotics control laws.  In 
addition, bills on tracing illicit profits and on implementing the 
1988 UN Convention advanced in the legislative process.  To 
streamline inter-agency coordination, the Federal Government in 
1992 created the position of National Drug Coordinator in the 
Interior Ministry.  Internationally, the FRG hosted a Dublin Group 
meeting on assistance to Eastern Europe and is organizing 
preparatory work for the development of the Europol drug unit.  

II. Status of Country

German officials believe heroin remains the primary drug of abuse, 
but cocaine consumption also is increasing; cases involving crack 
cocaine were reported for the first time.  Germany's central 
location in Europe, major sea and airports, and extensive highway 
system make it a conduit for drug transshipment.  Trafficking is 
further facilitated by the openness of its border crossings and 
the ease of entry granted to EC citizens and "guest workers."  
Inexperienced police in the former East Germany make the post-
unification borders along the Baltic Sea, Poland, and 
Czechoslovakia attractive transit points for organized crime 
groups.

The only known cultivation of narcotics is the licensed growth of 
poppy in Bavaria for poppy seeds used in bakery products.  There 
is some small-scale production of illicit amphetamines.

The FRG is a major international banking and finance center, but 
it only has limited mechanisms to curb or deter money laundering.  
Proposed legislation would improve government capabilities to 
trace illicit profits. 

Germany produces or sells virtually all types of precursor and 
essential chemicals.  The industry generally complies with 
chemical control laws and regulations.  Most German companies 
cooperate with law enforcement agencies in investigating suspected 
diversion of controlled and noncontrolled chemicals.  However, 
chemicals produced in the FRG continue to be found at cocaine 
laboratories in Latin America.  As an EC member, Germany was 
obliged to adopt the EC chemical regulation on January 1, 1993, 
which includes mandatory controls and is in the process of 
implementing them. 

III.  Country Action Against Drugs in 1992

Policy Initiatives.  The FRG produced a series of bills to 
strengthen laws against narcotics.  The government completed 
measures needed to implement and ratify the 1988 UN Convention and 
sent it to the legislature.  The timetable for passage is unclear.  
At issue is the concern of some German Federal states and 
opposition party figures to the Convention's obligation to include 
among criminal offenses any purchase or possession of narcotics, 
which could affect some medical practitioners as well as 
individual users.  However, most German authorities are confident 
the bills will be passed.  

The cabinet established the position of Federal Narcotics 
Coordinator in August and appointed Interior Ministry 
Parliamentary State Secretary Eduard Lintner to fill it.  At the 
same time, the cabinet created a National Drug Advisory Council 
that will address questions related to the liberalization of 
"soft" drugs. 

Accomplishments.  The FRG entered into an agreement against 
organized crime with Bulgaria in 1992, following the signing of 
similar agreements with Czechoslovakia, Hungary, and Poland in 
1991.  In September, the FRG hosted the first Dublin Group Meeting 
on drug control assistance to Eastern Europe.  The FRG budgeted DM 
46 million for antidrug training and equipment for 1992-94, 40 
percent of which is destined for its Eastern European neighbors.

Law Enforcement Efforts.  Within the framework of Germany's 
relatively narrow police investigative powers, law enforcement 
against narcotics trafficking is generally effective.  German 
authorities established a number of new local task forces in 1992 
to fight organized crime and narcotics trafficking.  Authorities 
seized nearly two mt of "hard" drugs in the first ten months of 
1992.  In December they seized three mt of amphetamines produced 
in Latvia and destined for Western Europe, the largest single 
seizure of such drugs.

Money laundering efforts have been constrained by stringent 
privacy laws and the lack of requirements for reporting large 
transactions.  However, the situation is expected to improve if 
proposed legislation on tracing illicit profits is adopted and 
enforced.

Corruption.  Corruption is not a significant problem in  narcotics 
law enforcement. 

Agreements and Treaties.  Although the FRG has not yet ratified 
the 1988 UN Convention, it has undertaken initiatives that are 
consistent with the goals and objectives of the Convention.  
German officials continue to pursue agreements on cooperation 
against organized crime with various states of Eastern Europe and 
the Newly Independent States of the former Soviet Union.  U.S.-FRG 
efforts are guided by various accords, including a 1978 agreement 
on cooperation in controlling drug abuse and a 1956 agreement to 
exchange information regarding trafficking of illicit drugs.  
However, there is no mutual legal assistance treaty between the 
U.S. and the FRG. 

Drug Flow/Transit.  Heroin represents the largest volume of 
illicit trafficking in Germany, usually shipped to or through 
Germany from the Middle East via the "Balkan route" through 
Turkey, Bulgaria, the former Yugoslavia, and Austria.  Germans, as 
well as Turks, Yugoslavs, Moroccans, Algerians, and Italians, 
account for the greatest number of traffickers.  In 1992, 
traffickers routed shipments around the conflict in the former 
Yugoslavia, entering Germany through Czechoslovakia and Poland.  
Poland and Latvia are significant producers of amphetamines 
destined for Germany, and the Central Asian States produce 
cannabis products and opiates for the FRG market.  Frankfurt 
International Airport was at the center of several drug smuggling 
operations in 1992.  Shipment of drugs, particularly of marijuana, 
in sea cargo containers is also significant.  FRG authorities also 
encountered numerous cases of individuals importing small 
quantities of marijuana from the Netherlands by car or train.  

Demand Reduction Programs.  For 1992-1993, German officials raised 
federal spending on drug prevention, treatment, and research from 
DM 50 million to DM 55 million.  Publicly funded health and 
research services and facilities for narcotics treatment and 
prevention were expanded by 18 percent nationwide, from 3,400 to 
4,023, and are expected to expand by another eight percent by 
early 1993.  The FRG continues to promote outpatient treatment 
models to supplement the traditional long-term therapies supported 
by most states and insurers.

IV. U.S. Policy Initiatives and Programs. 

Policy Initiatives.  Cooperation between the FRG and the USG is 
good, including mutual support for law enforcement as well as in 
international bodies like the Dublin Group and the UN Commission 
on Narcotic Drugs.  At the FRG's initiative, it held consultations 
in Washington in 1992, reflecting an increased German interest in 
expanding drug control cooperation between the two governments.  
One result was an agreement to intensify bilateral contacts in 
some key producing countries where both governments have 
significant aid or anti-narcotics programs. 

The Road Ahead.  The USG will continue working with Germany, as 
with other EC members, to strengthen the regulatory and 
enforcement frameworks, especially in money laundering and 
chemical controls.  The USG also will continue to urge the FRG, as 
well as other EC members, to take the lead in drug control efforts 
in Eastern Europe and the Newly Independent States.
(###)

GREECE

I. Summary

Greece is a key transshipment point for illicit narcotics from 
major producing nations in the Middle East and South Asia, 
destined for Europe and the U.S.  The turmoil in the former 
Yugoslavia has forced many traffickers to bypass that region, 
resulting in increased levels of heroin and hashish leaving Greece 
by ship.

Greek narcotics enforcement agencies made numerous arrests and 
substantial progress toward dismantling major drug rings in 1992.  
There was close cooperation with USG agencies, which provided 
equipment to assist Greek authorities in narcotics enforcement. 

The Government of Greece (GOG) participates in various 
international antidrug organizations, including the Dublin Group.  
Greece ratified the 1988 UN Convention in 1992.  The government 
recently proposed new legislation to establish a state-controlled 
agency to coordinate substance abuse prevention and 
rehabilitation, and to toughen penalties for narcotics-related 
offenses.

II. Status of Country

Illicit narcotics trafficking in Greece involves transshipment 
from the Middle East and Asia to Western Europe and the U.S., and 
the use of Greek carriers to transport illicit narcotics to 
Western markets.  Significant quantities of hashish and heroin 
from the Middle East, especially Lebanon and Syria, pass through 
Greece in bonded (TIR) trucks, which do not undergo customs 
inspection.  They enter via the Syria-Piraeus ferry line or pass 
overland through Turkey.  From Greece, they cross by ferry to 
Italy or continue by land through Yugoslavia; the latter obviously 
has become less common due to the civil strife.  Hashish is 
offloaded in remote areas of Greece and smuggled onward to Eastern 
Europe.

The organizers and transporters of this traffic include Greeks and 
other nationals.  Heroin is arriving in Greece in increasing 
quantities.  The bulk continues to Europe and the U.S.  Greek-
owned commercial vessels and maritime personnel play a role in the 
transshipment of hashish from Lebanon to Western Europe and the 
U.S.

Greece also faces a growing domestic drug abuse problem.  The 
large pool of unemployed urban youth is a market for readily 
available, locally grown marijuana and imported hashish and 
heroin.  Overdose deaths in Greece have steadily increased, and 
the visibility of heroin paraphernalia around schools and parks 
has heightened public concern.  Amphetamines and barbiturates are 
easily procured, while cocaine is the upper-middle class drug of 
choice.  Cannabis, which is widely cultivated for local use, is 
the only illicit drug produced in any quantity, although 
reportedly a very small quantity of opium is produced for illicit 
use as well.

II. Country Action Against Drugs in 1992 

Policy Initiatives.  As noted, the government recently proposed 
legislation to toughen penalties for narcotics-related offenses 
and to establish a state-controlled agency to coordinate substance 
abuse prevention and rehabilitation. 

The rise in illicit drug use and trafficking prompted the GOG to 
take a more active role in multilateral fora.  Greece is an active 
member of the EC's antidrug group (CELAD) and the Dublin Group, 
where it served in 1992 as the Group's regional chair of the 
Balkan Route region.  The EC is evaluating a proposal by Prime 
Minister Constantine Mitsotakis for an EC-funded central drug 
information center on the "Balkan route" in Greece.

In 1992, Greece signed an agreement with Russia for cooperation 
and assistance on narcotics investigations. 

Law Enforcement Efforts.  Greek Customs and National Police share 
primary responsibility for drug law enforcement.  Drug legislation 
passed in 1987 provides for heavy sentences for convicted 
traffickers.  Several heroin dealers were sentenced to life 
imprisonment in 1992.  Government drug rehabilitation and 
treatment programs are still in the development stages, slowing 
the implementation of mandatory treatment of convicted addicts.  

A 1987 law called for the creation of the Central Narcotics 
Council (CNC) to coordinate drug enforcement activities.  The CNC 
is to consist of representatives from the Ministry of Public 
Order, Ministry of Finance, and Merchant Marine Ministry 
(responsible for the Coast Guard), but the council is still in its 
early stages of development.

Greece's bank secrecy laws permit access by prosecuting 
magistrates to account information when probable cause exists. The 
Ministry of Finance has discussed the possibility of USG 
assistance in establishing an organization that will track 
financial data as an enforcement tool against money laundering 
through Greek banks. 

Corruption.   In 1992, the National Police investigated and 
arrested police officers involved in the trafficking of illegal 
narcotics in two separate incidents.  One involved a high-ranking 
narcotics enforcement officer who is presently incarcerated and 
awaiting trial for his alleged association with and protection of 
major narcotics traffickers.  Greek law imposes severe penalties 
for police malfeasance.

Agreements and Treaties.  As noted, Greece signed a bilateral 
agreement for cooperation and assistance with Russia on narcotics 
investigations in October.  Senior Greek officials also have 
expressed an interest in pursuing a mutual legal assistance treaty 
with the U.S.

Cultivation/Production.  Cannabis is the only illicit drug grown 
in any quantity in Greece.  It is cultivated primarily for 
domestic use.

Drug Flow/Transit.  Greece is a key transshipment country for 
heroin and hashish from Southeast Asia  for Western Europe, 
although some moves to the U.S. as well.  Increasing amounts of 
heroin are entering Greece from  Turkey via car and truck, 
primarily at the Ipsala/Kipi border crossing.  Once in Greece, 
most of the heroin is transshipped to Yugoslavia or is shipped to 
Italy by sea.  

Demand Reduction Programs.  Kesykana coordinates GOG demand 
reduction programs.  The Center for the Therapy of Dependent 
Individuals (Kethea), an NGO, is also engaged in drug abuse 
treatment.

IV. U.S. Policy Initiatives and Programs 

USG policies focus on strengthening cooperation in law enforcement 
and on assisting Greece to gain a better understanding of its 
domestic consumption problems.

The USG's primary objectives are to encourage a greater focus on 
law enforcement efforts and to assist Greek narcotics enforcement 
agencies through better training and improved equipment.  The USG 
provided law enforcement agencies approximately $39,000 in 
equipment for narcotics enforcement investigations in 1992.  DEA 
maintains an office in Athens and hosts a monthly narcotics 
meeting which is attended by representatives from the Greek Coast 
Guard, the National Police and Customs, Interpol and narcotics 
coordinators from various foreign embassies.  These meetings have 
proved beneficial for improving the exchange of law enforcement 
information and improving cooperation among the meeting 
participants.  In addition, the DEA, with INM funds, provided a 
number of training seminars in 1992 to Greek narcotics enforcement 
officers.

The USG encourages the GOG and private sector organizations to 
focus on the drug problem by providing information, sponsoring 
seminars, and providing equipment to institutions working on 
demand reduction.  USIS sponsored the "1992 PRIDE World Drug 
Conference" in Athens to focus attention on the drug problem. 

The Road Ahead.  The USG looks to continued close cooperation with 
Greek drug control agencies and will promote the GOG's active 
participation in international antidrug organizations. 

[Chart - Greece 1993 Statistical Tables]
(###)

HUNGARY

I.  Summary

Efforts by drug traffickers to expand their operations outpaced 
the government's antidrug activities in 1992.  Drug organizations 
are now shipping more drugs, mostly heroin but also some cocaine, 
through Hungary to Western Europe.  Hungarian officials suspect 
that drug traffickers also are using the antiquated banking 
industry to launder funds.

The Government of Hungary's (GOH) interdiction and demand 
reduction efforts have been limited by the shortages of trained 
customs and police personnel, equipment, and other resources.  
Political and economic problems in the region have prevented the 
emergence of a regional coordinated antidrug campaign among East 
European nations.  

II.  Status of Country 

Hungary's location between eastern opium source countries and 
Western European consumers makes it a natural transshipment area.  
Heroin is smuggled through Hungary in containerized cargo trucks; 
smugglers are now using waterways to smuggle drugs to the West.  A 
new canal system in Germany connects the Rhine and Danube river 
systems and is used by traffickers to move drugs on river barges 
from the Black Sea to Western Europe.  GOH customs officials 
reportedly have cited several heroin seizures on Russian cargo 
ships transiting the Danube.  The situation in the former 
Yugoslavia also is causing traditional "Balkan route" heroin 
trafficking to move to parts of northern Hungary.  

Turkish drug trafficking groups continue to dominate smuggling 
operations, but significant numbers of Arabs, Russians, Syrians, 
Lebanese, Ukranians, Albanians, and Khazaks are involved as well.  
South American traffickers are now making inroads; several 
Colombian cocaine couriers have been apprehended at Budapest's 
international airport.

Hungary's banking system lacks strong controls and is attracting 
drug money laundering.  Customs officials believe that Italian 
Mafia and other organized crime groups, including Colombian 
traffickers, may already be exploiting bank secrecy laws to 
launder drug funds.  Law enforcement officials do enforce existing 
controls on the amount of currency brought into the country and 
banks are now required to maintain records of suspicious 
transactions; but few, if any, have been reported to the National 
Bank of Hungary.  

While most drugs transit to Western Europe, Hungarian health 
officials also recently have noted a rise in domestic drug abuse.  
Traditional consumption of amphetamines and crude morphine made 
from domestic opium poppies continues, but heroin use is also 
rising.  

II.  Country Actions Against Drugs in 1992

Policy Initiatives.  Government concern about the rising drug 
activity prompted some key policy changes over the past two years.  
The inter-ministerial committee, which is headed by the Ministry 
of Health  and coordinates antidrug efforts in 15 different 
ministries, was created in 1991 and has promoted efforts to 
collect drug abuse data.  It is reviewing legislation designed to 
meet the requirements of the 1988 UN Convention.

Law Enforcement Efforts.  Hungarian Customs has increased its 
interdiction efforts and established mobile drug squads, trained 
by the USG and the UNDCP.  Customs also is developing a national 
drug information computer system, linked to other law enforcement 
systems in the region, to track precursor and essential chemical 
shipments.  

Corruption.  The USG is unaware of any reports of official 
narcotics-related corruption in Hungary.

Agreements and Treaties.  The GOH has signed, but not yet 
ratified, the 1988 UN Convention; national legislation must be 
modified before Hungary can ratify it.  Hungary is a party to the 
1961 Single Convention on Narcotic Drugs, the 1972 Protocol 
thereto, and the 1971 UN Convention on Psychotropic Substances.  
Hungary participates in the EC's Pompidou group, the Customs 
Cooperation Council (CCC), and has bilateral agreements with the 
U.S., UK, and Sweden.  The EC's association agreement with Hungary 
also includes provisions for antidrug cooperation and assistance.  
The Hungarian government is a member of the Chemical Action Task 
Force (CATF) and the Financial Action Task Force (FATF).  

Cultivation and Production.  There have been reports of small 
amounts of opium poppy cultivation in Hungary.  Most of this poppy 
is used for cooking: there have been unconfirmed reports that some 
is used to produce crude forms of illicit drugs solely for 
domestic use. 

Demand Reduction Programs.  Although the GOH's efforts have been 
hindered by the lack of resources and training, the GOH has 
outlined priorities for next year including increasing 
interdiction, arrest and prosecution of drug offenders, developing 
abilities to detect and prevent money laundering, and creating 
drug prevention and treatment programs.  Moreover, Hungary is now 
receiving antidrug aid from several West European countries and 
from the UNDCP, principally to assist Customs.  

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  The USG increased cooperation with Hungary's 
antidrug agencies in 1992.  Over the past three years, the USG has 
provided assistance through INM-funded programs administered by 
the DEA and U.S. Customs for Hungarian law enforcement and Customs 
officials to participate in a variety of seminars and training 
programs.  In 1992, INM funded an Executive Observation Program 
for the head of Hungarian Customs; it also provided Customs with 
radio equipment and narcotics test kits.  The FATF is conducting a 
seminar in Budapest for East European policy-makers on countering 
money laundering.  INM also funded demand reduction seminars and a 
needs assessment for demand reduction requirements. 

The Road Ahead.  The USG in 1993 will continue to urge Hungary to 
ratify and implement the 1988 UN Convention.  It will also provide 
limited law enforcement and demand reduction training and 
equipment.  A key element of our strategy will be to encourage 
Western European nations most directly affected by trafficking 
through Hungary to provide narcotics control assistance.
(###)

ICELAND

I.  Summary

Iceland's drug problems are less severe than those of its European 
neighbors, primarily because of its small population  and its 
isolation.  However, the use of cocaine and other drugs is 
growing.  Government of Iceland (GOI) policy-makers and law 
enforcement officials are committed to combatting illicit drugs.  
As the problem grows, the GOI is showing a willingness to extend 
international cooperation and to establish legal standards 
consistent with the 1988 UN Convention.  Iceland cooperates 
closely with Interpol, other Nordic countries, and the DEA to 
intercept drug traffickers.

II. Status of Country

The primary drugs of abuse in Iceland are amphetamines, hashish, 
cannabis, cocaine and, increasingly, the synthetic drug "ecstasy."  
Heroin use is negligible.  While Iceland to date has avoided a 
significant crack cocaine problem, GOI officials are concerned 
about the increased purity of cocaine entering the market. 

GOI authorities believe illicit drugs are smuggled into Iceland by 
airline passengers from the U.S. and Europe.  Authorities are not 
aware of significant shipments of illicit drugs from Iceland to 
the U.S.

There has been no evidence of money laundering in Iceland's small 
banking system, despite the absence of specific legislation making 
money laundering illegal.  An Icelandic inter-ministerial 
committee is working on money laundering and other legislation 
that would create standards under Icelandic law similar to those 
in the 1988 UN Convention.

Iceland is not considered a significant producer or transit point 
for precursor or essential chemicals.  It has a system of 
voluntary controls for imports of such chemicals for domestic use.

Corruption among GOI officials is not considered a problem.

III. Country Actions Against Drugs in 1992

GOI antidrug efforts focus on interdicting drugs entering Iceland.  
The GOI actively participates in international drug control 
efforts.  Icelandic enforcement agencies rely on profiles of drug 
dealers and intelligence data shared with Interpol, DEA, and other 
Nordic narcotics police, in addition to informant information.

Keflavik NATO base authorities monitor the mail and incoming 
passengers on military flights to prevent drug smuggling.  Random 
testing helps control illicit drug use by base personnel.

Iceland agrees in principle with, but is not a signatory to, the 
1988 UN Convention.  Iceland has not been able to complete the 
administrative apparatus necessary for ratification and 
implementation of the convention.  An Icelandic inter-ministerial 
committee is working on money laundering and other legislation 
that would create standards under Icelandic law similar to those 
in the Convention.

Iceland is a party to the 1961 Single Convention and its 1972 
Protocol, and the 1971 Convention on Psychotropic Substances.  The 
USG and GOI have an extradition treaty dating from 1902.

IV.  U.S. Policy Initiatives and Programs 

USIS sponsors visits by American substance abuse prevention and 
rehabilitation experts to enhance Icelandic educational efforts.  
The U.S. Embassy coordinates the activities of the Reykjavik 
Narcotics Police and the DEA regional office in Copenhagen.  The 
Reykjavik Narcotics Police, working with the DEA, monitor the 
illicit shipments between the U.S. and Europe.  To strengthen GOI 
capabilities to monitor illicit traffic, INM funds computer 
training for the Reykjavik Narcotics Department officer 
responsible for the Joint Information Coordination Center (JICC) 
database in Reykjavik.  The JICC handles information collected by 
U.S. law enforcement, military and other government officials on 
private aircraft, vessels and selected categories of individuals.

The Road Ahead.  The USG will work with the GOI to build closer 
cooperation, especially in monitoring drug shipments between the 
U.S. and Europe through the JICC database.  The USG also will 
encourage the GOI to sign and ratify the 1988 UN Convention as 
soon as possible.
(###)

IRELAND

I. Summary

Ireland is increasing in importance as an international narcotics 
transit country.  Its long, sparsely patrolled coastline makes 
maritime drug transfers and clandestine landings of drugs 
relatively easy.  Its proximity to other West European drug 
markets, such as Great Britain and the Netherlands, makes it 
increasingly attractive as a base.  Irish authorities suspect that 
the Provisional Irish Republican Army (PIRA) is increasingly 
involved in racketeering and may be becoming more active in 
narcotics trafficking.  Ireland's small population limits domestic 
demand, but drug use is increasing, especially among the affluent 
young.  Irish authorities do not believe that trade in precursor 
chemicals is a problem, but fear that money laundering is 
increasing.  Reliable statistics are scarce.

Ireland is a founding member of the Dublin Group and an active 
participant in the EC's Trevi Group, and continues to support 
international narcotics control cooperation.  Ireland has not yet 
ratified the 1988 UN Convention .

II. Status of Country

Domestic demand for illicit drugs in Ireland is not high, although 
cocaine use reportedly has increased.  Data on the amount are not 
available, but authorities believe that drug use is increasing 
among the affluent young, especially "designer drugs" and hashish.  
Heroin use is largely confined to the poorest slum areas and has 
declined since it peaked during the 1970s.  

Ireland's proximity to major narcotics markets and other EC 
countries makes it attractive to narcotics traffickers.  Several 
residents of the country are suspected of active involvement in 
this activity, including foreign nationals who have recently 
purchased vacation homes in the western part of the country.

Irish authorities are unaware of significant imports or exports of 
precursor or essential chemicals and do not consider diversion a 
problem.  However, they suspect that the PIRA has sporadically 
imported chemicals for the manufacture of amphetamines in Ireland.

Ireland is not an important regional financial center nor is it 
considered a money laundering center.  However, officials fear 
that money laundering is becoming more common, especially in the 
cases of investment in legitimate businesses by the PIRA and the 
purchase of real estate by foreigners.

III.  Country Actions Against Drugs in 1992 

The Government of Ireland (GOI), in response to diversion of 
opiates from licit suppliers, is strengthening control mechanisms, 
including the training of medical practitioners in the prescribing 
of narcotics.  It has also increased air and sea surveillance to 
help contain smuggling across its borders.

Ireland was a founding member of the Dublin Group and plays an 
active role in the EC Trevi Group, which appears to be steadily 
focusing on narcotics trafficking.  Irish authorities fully 
cooperate with their U.S. and British counterparts.

Drug Flow/Transit.  Besides the diversion of opiates from licit 
sources, Irish authorities believe that most of the illicit drugs 
imported into Ireland come from the Middle East.  They have not 
detected large-scale imports directly from North or South America.

Law Enforcement Efforts .  Although seizures are up, it is 
impossible to tell whether they reflect better law enforcement or 
increased trafficking.  The Customs Service and the Police are 
principally responsible for narcotics enforcement.  They are 
present at the country's three international airports and at the 
major seaports and increasingly use drug detector dogs.  The lack 
of maritime patrol boats makes it difficult to patrol coastal 
waters adequately.

Penalties for those convicted of drug trafficking range up to 
fifteen years in prison.  Penalties for drug use are relatively 
minor, from probation for first offenses to several years 
imprisonment.

Corruption.  Corruption among law enforcement officials does not 
appear to be widespread or to be a significant problem in law 
enforcement against narcotics trafficking.

Agreements and Treaties.  Ireland has not yet ratified the 1988 UN 
Convention.  The GOI must pass and implement legislation, such as 
in the areas of money laundering and chemical controls, before it 
is able to meet fully the goals and objectives of the Convention.  
As a member of the EC, it is obligated to adopt such legislation.  
It recently became a party to the 1971 Convention on Psychotropic 
Substances.  In addition, it is a party to the 1961 Single 
Convention and its 1972 Protocol.  The USG and GOI have an 
extradition treaty dating from 1983.

IV.  U.S. Policy Initiatives and Programs

The USG does not have any antidrug programs in Ireland nor does it 
provide antidrug assistance to the GOI.  The USG will continue to 
encourage Ireland's ratification and implementation of the 1988 UN 
Convention and look forward to its continued participation and 
cooperation in the various international narcotics control 
organizations.
(###)

ITALY

I.  Summary

Italy is a transshipment point for drugs moving from Southwest 
Asia to the United States.  Italian antidrug policy emphasizes 
demand reduction and treatment, but authorities are also focusing 
on law enforcement, particularly on Mafia-related activities.  
Despite new financial record-keeping requirements, Italy is 
emerging as a leading money laundering center in Europe.  The 
Italian authorities have cooperated closely with the USG, as 
evidenced by the success in 1992 of Operation "Green Ice," a DEA 
international money laundering investigation.  Italy is active in 
the Dublin Group, the Chemical Action Task Force (CATF), and the 
Financial Action Task Force (FATF), and is a major donor to the 
UNDCP. 

II. Status of Country

The domestic market for heroin and cocaine is extensive and the 
drugs are readily available throughout Italy.  Authorities believe 
that cocaine and heroin addiction grew in 1992.  Official 
estimates of cocaine users ranged from 400,000 to 700,000.  The 
death rate among addicts is increasing, both as a result of 
overdose and the spread of AIDS.  The majority of hashish entering 
Italy is transshipped to other European markets with occasional 
shipments to Canada and the U.S.  While there is no known 
cultivation of opium poppy or coca in Italy, small-scale 
cultivation of cannabis occurs in areas south of Rome.

The Sicilian Mafia is the largest and most influential trafficking 
group in Italy, and its influence is felt throughout the country.  
Although the Mafia traditionally operates in the south of Italy, 
the northern financial capital of Milan has become the center for 
its investment activities and the transfer of funds to Swiss and 
other European banking facilities.  Milan ranks third in the 
number of homicides in Italian major cities, much of it the result 
of turf wars among trafficking groups.  As Operation "Green Ice" 
demonstrated, Colombian and other South American cocaine 
trafficking organizations with networks in Italy also want to 
establish money laundering  operations.  

Italian authorities closely monitor precursor chemical shipments.  
Periodic audits by Italian Customs officials and voluntary 
reporting systems have proved effective in curbing diversion.

No cases of officials involved in drug trafficking or money 
laundering have been reported.  Narcotics-related corruption is 
not considered a major problem.

III. Country Actions Against Drugs in 1992

Policy Initiatives.  In keeping with its emphasis on demand 
reduction and treatment, the GOI opened several drug addiction 
treatment facilities in 1992.  Authorities also are attempting to 
determine precisely the number of cocaine addicts.

Law Enforcement Efforts.  Between January and May 1991 (latest 
data available), 1,770 persons were arrested for drug use.  During 
the same period, 8,398 persons were arrested on charges of 
trafficking or possession with intent to sell.  Controversy 
between law enforcement agencies and the judiciary continues on 
what constitutes an amount for "average daily personal use."  This 
determines whether a person is simply detained, identified and 
released, or if they are arrested for possession.  However, the 
GOI recently issued a decree amending a 1990 narcotics law to de-
penalize the personal use of drugs.  The decree permits 
administrative sanctions (e.g., suspension of driver's license) 
rather than prison terms.  It also increases the amount considered 
to be for personal use.

The extradition of three Sicilian Mafia members in 1992 resulted 
in the dismantling of a major drug trafficking/money laundering 
group, the Cuntrera-Caruana organization.  The three Cuntrera 
brothers were expelled from Venezuela to Italy where they were 
arrested on charges of drug trafficking and distribution.  The 
Cuntrera brothers were also wanted by both the U.S. and Canada.  
Over $30 million in assets thus far have been seized, including 
bank accounts, hotels, homes and vehicles.  Law enforcement 
authorities in Italy, the U.S. and Venezuela continue to unravel 
the complexities of this major crime organization. 

As noted, Italy's new record-keeping requirements for all 
financial institutions, including the stock exchange, are a useful 
deterrent against money laundering.  But other new financial laws 
have resulted in the creation of thousands of small companies 
involved in "finance" activities, some of which are suspected of 
transferring narcotics-related funds to other international 
financial centers. 

Drug Flow/Transit.  Besides serving as an important domestic 
market, Italy is also a transshipment point for heroin from 
Turkey, Syria, India, Thailand and Bangladesh, often destined for 
the U.S.  In 1991, Italy seized 1,036 kg of heroin (most recent 
available data).  Cargo trucks travelling the Balkan route remain 
the most common smuggling method for drugs and other contraband.  
Significant quantities of drugs from Lebanon and Syria pass 
through Greece in bonded and sealed TIR trucks.  From Greece, 
these trucks cross by ferry to Italy or continue by land through 
the former Yugoslavia.  Italy has attempted to work with countries 
in the area to curb the flow of heroin, but the effort has been 
hampered by the conflict in the former Yugoslavia.  Marine and air 
cargo, couriers and, increasingly, international mails are also 
routine smuggling methods. 

There is evidence that Italian organized crime groups are 
cooperating with Colombian and other South American cocaine 
trafficking organizations to import and distribute cocaine 
throughout Europe.  The cocaine from Colombian suppliers enters 
Italy mainly by marine and air cargo and courier.  In 1992, Italy 
seized 1,444 kg of cocaine.

Agreements and Treaties.  Italy ratified the 1988 UN Convention in 
1990.  The U.S. and Italy have a mutual legal assistance treaty 
(MLAT), as well as an extradition treaty.  Italy is a member of 
the Dublin Group, the G-7 CATF, and the FATF.  It has provided 
financial and material assistance to several Andean countries and 
multilateral antidrug organizations.

IV.  U.S. Policy Initiatives and Programs

Bilateral cooperation includes mutual support for law enforcement 
efforts as well as cooperation in international bodies like the 
Dublin group and the UN Commission on Narcotic Drugs. The U.S.-
Italian working group, consisting  of representatives from the 
Ministry of Justice and law enforcement agencies, meets at least 
once a year to review cooperation against organized crime, 
including drug trafficking.  USG law enforcement agencies with 
offices in Rome, including DEA and the FBI, work closely with the 
Italian authorities on joint antidrug and organized crime 
operations.

The Road Ahead.  USG policy objectives will center on Italy's 
efforts to counter organized crime narcotics-related activities, 
including money laundering.  In addition, the USG will continue to 
encourage Italy's commitment to support multilateral institutions 
and participation in the Dublin Group, the CATF and the FATF.

The USG will look to the EC, including the GOI, to assume the lead 
in assisting Eastern Europe and the NIS of the former Soviet Union 
with their antidrug efforts.
(###)

LUXEMBOURG

I.  Summary

Luxembourg has become a major banking and financial center and 
Government of Luxembourg (GOL) officials are working to forestall 
illicit money laundering, which did occur in the past.  The 
conviction in Luxembourg of two Cali cartel money launderers in 
April marked the first time in Europe that drug money launderers 
were prosecuted under specific money laundering statutes.  
Luxembourg also established an assets forfeiture fund to support 
drug abuse programs and Luxembourg's participation in multilateral 
drug control efforts.  Luxembourg has a growing abuse problem.  

II.  Status of Country 

Luxembourg's domestic drug policy has traditionally focused on 
demand reduction.  Authorities are concerned that the number of 
drug abusers is increasing; they estimate there are approximately 
1,500 heroin addicts, 700 cocaine addicts and 3,000 - 4,000 
marijuana abusers in a total population of 390,000.  Officials are 
trying to curb drug consumption by sponsoring drug awareness 
programs targeted at the country's youth. 

III.  Country Actions Against Drugs in 1992 

Policy Initiatives.  Past use of some Luxembourg banks and 
financial institutions for money laundering prompted the GOL to 
enact strict financial measures.  Traditional bank secrecy no 
longer applies in drug-related cases. 

The GOL cooperates on narcotics control at international meetings 
with its European partners, including the EC's Trevi summits, and 
shares drug-related information and interdiction experience. 

Law Enforcement Efforts.   The police seized 5.7 kg of heroin and 
approximately 10 kg of cocaine in 1992, down slightly from 1991.  

Drug Flow/Transit.  Small quantities of cocaine, heroin and 
marijuana for domestic use are smuggled by air and by vehicle from 
neighboring countries.  USG authorities do not believe any 
significant quantities of illicit drugs transit the country.

Corruption.  Corruption is not a problem among GOL officials.

Agreements and Treaties.  Luxembourg ratified the 1988 UN 
Convention on March 17, 1992.  The ratifying legislation brought 
Luxembourg's laws into conformity with the Convention.  By these 
actions, Luxembourg is generally meeting the goals and objectives 
of the Convention. 

Luxembourg signed (but has not ratified) the 1971 Convention on 
Psychotropic Substances; it has ratified the 1961 Single 
Convention.  The GOL and the USG do not have a bilateral narcotics 
control agreement, but this has not hindered cooperation.  The 
U.S. has several requests pending for the return of accused drug 
offenders under the U.S.-Luxembourg extradition treaty.

Demand Reduction Programs.  Authorities are seeking to control 
drug abuse by sponsoring drug awareness programs targeted at 
youth.  Officials used European Drug Prevention Week in November 
to promote public awareness of the danger of drug abuse.

IV. U.S. Policy Initiatives and Programs

In 1992, the USG sponsored the visit to Washington of the chief of 
the Luxembourg Gendarmerie who met with the DEA Administrator, 
officials of the FBI, and members of the U.S. intelligence 
community.  In July, at an INM-funded DEA training session in 
Denmark on money laundering, a GOL official gave a presentation on 
the case involving Europe's first successful drug money laundering 
prosecution. 

The Road Ahead.  The USG seeks close cooperation with the GOL on 
important money laundering cases and in multilateral antidrug fora 
such as the Financial Action Task Force and the Dublin Group.  The 
USG will pursue cooperative efforts to unblock drug-related 
assets, frozen in Luxembourg banks, so they can be jointly 
forfeited.  The assets belong to a deceased alleged member of the 
Medellin cartel.
(###)

MALTA

I.  Summary

Because of its small size and limited domestic market, Malta is 
unlikely to become a significant producer of drugs or precursor 
chemicals.  Maltese officials have no evidence of active money 
laundering taking place.  Local court narcotics cases have 
predominantly involved prosecution for possession.  The Government 
of Malta (GOM) last received INM assistance in FY 91, with the 
donation of two former USG patrol boats for use in coastal 
surveillance.  Maltese Police have participated in two recent DEA 
training seminars.  Local drug cultivation is insignificant.  The 
GOM intends to sign and ratify the 1988 UN Convention once 
domestic legislation is brought into conformity with it.

Part II.  Status of Country

Heroin and cocaine consumption remains Malta's primary illegal 
drug problem.  In 1991, Maltese officials estimated there were 
6,000 drug users.

Malta is not a significant producer of precursor chemicals.  Since 
the GOM plans to sign the 1988 UN Convention, it will have to 
bring its chemical control legislation into conformity with the 
convention.

Although Maltese authorities have no current evidence of active 
money laundering, its proximity to Italy makes it a potentially 
attractive location for Italian organized crime groups to conduct 
offshore banking activity.

III. Country Actions Against Drugs in 1992

Law Enforcement Efforts.  There are currently no plans to increase 
penalties for drug trafficking or drug use which are already 
stiff, consisting of fines and imprisonment.  The current maximum 
penalty for drug dealing is 30 years in prison.  In 1992, 66 
persons were in Maltese courts on narcotics charges.  Of these, 48 
were arraigned for possession, 11 for trafficking, 5 for 
importation of cannabis, and 2 for cultivation of cannabis.  From 
January through mid-November 1992, Maltese authorities seized 146g 
of cannabis leaves, 884g of cannabis resin, 74 cannabis plants, 
300 cannabis cigarettes, 736g of heroin, 5.5g of cocaine, and 
small quantities of tranquilizers.  Comparable seizures occurred 
in 1991.  Corruption among GOM officials is not considered a 
problem.

Maltese officials cooperate closely with Italian law enforcement 
officials to prevent the transshipment of drugs through Malta to 
Italy.  Maltese Customs use drug detector dogs and patrol boats to 
control small private vessels and to monitor larger ocean-going 
commercial ships. 

Agreements and Treaties.  The GOM intends to sign and ratify the 
1988 UN Convention once it brings domestic law into conformity 
with the Convention's aims, a slow process.  The GOM has not set a 
date when it expects to sign the Convention.   In addition to 
chemical control legislation, financial investigation  and 
controlled delivery provisions must be  enacted before Malta can 
be in full compliance with the 1988 Convention.  As it now stands, 
these measures (including phone taps and some undercover 
operations) would violate Malta's Constitution.  Support is 
growing in the GOM to enhance drug enforcement, but an amendment 
to Malta's Constitution would probably be necessary before 
authorities could do so.

Asset seizure legislation already exists in Malta, but prosecutors 
must prove that the assets in question were the product of drug 
sales or other illegal activity.

Malta is a party to the 1961 UN Single Convention and its 1972 
Protocol, and the 1971 Convention on Psychotropic Substances.

IV.  U.S. Policy Initiatives and Programs

The DEA hosted the head of the Malta Police forensic laboratory 
for a two-week INM-funded seminar in September.  In October 1991, 
the head of the Malta Police Drugs/Vice Squad participated in a 
DEA narcotics management seminar, also funded by INM.  DEA 
training funded by INM is the mainstay of USG counternarcotics 
initiatives in Malta.

The Road Ahead.  The USG will continue to work with the GOM to 
build close cooperation, especially in the area of law enforcement 
training.  The USG will continue to encourage the GOM to ratify 
and implement the 1988 Convention.  The USG has provided the GOM 
with guidance on how to modify Maltese law to bring it into 
compliance with the convention.
(###)

MOLDOVA

I.  Status of Country

Moldova plays a relatively minor role in the drug trade.  There is 
little information on the extent of drug trafficking, possible 
production, and/or domestic consumption.  Moldovan authorities 
believe, however, that increasing amounts of Southwest Asian 
heroin are transiting Moldova to Western Europe.  They note that 
such transit trade is relatively minor, however.

Drug-related problems may be growing.  In 1991, 109 crimes and 167 
misdemeanors linked respectively to the use of drugs and to 
addiction were recorded in Moldova, compared to 63 crimes and 120 
misdemeanors in 1991.  Small-scale cultivation of opium poppy and 
cannabis exists, but no statistics are available on the extent of 
cultivation. 

II. Country Actions Against Drugs in 1992

Policy Initiatives and Law Enforcement Efforts.  Drug control is 
not a priority for Moldova.  The Government of Moldova (GOM) does 
not have a strategy for dealing with illicit drug trafficking.  An 
interagency Commission on Narcotics was established last year, but 
has never met.  Efforts to interdict drugs are limited by 
personnel and other resources.  The Ministry of Interior has the 
lead on narcotics, but it has only two officers devoted to drug 
issues and the unit's laboratory was closed in 1991. 

Agreements and Treaties.  The Soviet Union was a party to the 1988 
UN Convention, the 1961 Single Convention on Narcotic Drugs and 
its 1972 Protocol, and the 1971 Convention on Psychotropic 
Substances.  Prior to the dissolution of the USSR, each republic 
agreed at Alma Ata that it would continue to observe the treaties 
to which the USSR was a party.  Based on these undertakings and 
the relevant principles of international law, the USG has reached 
the conclusion that Moldova, as a successor state to the USSR, 
continues to be bound by these instruments.  Nonetheless, the USG 
has urged Moldova to take necessary actions to accede to the 
conventions, so that the depository will include them on its list 
of parties.  

The USG has limited information on which to base an assessment of 
whether Moldova is meeting the goals and objectives of the 1988 UN 
Convention.  Moldova will need to take additional steps to meet 
those goals fully.  The GOM has reported efforts to draft updated 
penal codes that will take the UN conventions into consideration.  
Meanwhile, the USSR's 1961 penal code remains in place.

Corruption.  The USG is unaware of any reports of official 
narcotics-related corruption in Moldova.

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  In 1992, the USG began a counternarcotics 
dialogue with the GOM.  Initial efforts have focussed on 
identifying existing problems, possible areas for assistance, and 
the need to implement UN drug  conventions.  Moreover, the USG is 
promoting antidrug assistance from those nations, primarily in 
Western Europe, most directly affected by heroin smuggling through 
Moldova.

The Road Ahead.  Over the next year, the USG will continue to 
encourage Moldova to expand its drug control activities and to 
establish the necessary legislative and institutional antidrug 
capabilities.  Specific attention will be given to urging the 
implementation of the 1961, 1973, and 1988 UN Conventions.  An 
implementation manual for the 1988 UN Convention prepared by the 
DOJ is now being translated into Russian and will be forwarded to 
the GOM.

The USG plans to provide $400,000 for counternarcotics assistance 
for the NIS through the United Nations Drug Control Program as 
well as some bilateral regional law enforcement and demand 
reduction training.  
(###)

THE NETHERLANDS

I. Summary 

The Netherlands is becoming an important transit point for cocaine 
from Suriname and Colombia and heroin from Southwest Asia.  
Nigerian organizations are prevalent in the Netherlands and are 
responsible for a large portion of the heroin arriving from 
Bangkok.  Government of the Netherlands (GON) officials are also 
concerned about the role of the Dutch territories of Aruba and the 
Netherlands Antilles in shipping significant quantities of illicit 
drugs to the country.  The Netherlands is an important source of 
amphetamines for other European countries and a major transit and 
brokering country for chemical exports.  The Netherlands has long 
had a domestic policy which tolerates personal use of small 
amounts of cannabis products and a generous system of medical and 
social care for addicts.  This traditional emphasis on treatment 
rather than criminal enforcement is a matter of ongoing debate 
within the Netherlands and an occasional source of controversy 
with neighboring countries.  The major bilateral accomplishment of 
1992 was the signing on November 20 of an agreement with the U.S. 
on asset-sharing and forfeiture.  The GON expects to ratify the 
1988 UN Convention in 1993.

II. Status of Country

With the world's largest harbor (Rotterdam), a major international 
airport (Schiphol), and a dense rail and road network, Dutch 
officials acknowledge that the movement of illicit drugs 
constitutes a troubling problem.  Over the past five years, there 
has been an increase in seizures of cocaine, LSD and "designer 
drugs."  The  GON devotes significant resources within its budget 
constraints to fighting drug trafficking.

The GON reported that there are approximately 20,000 addicts in 
the Netherlands in 1992.  The average age is rising to 
approximately 33.  However, a study by the Rotterdam Municipal 
Council showed that some 3.3 percent of Rotterdam's youths over 14 
use cocaine.  GON officials believe 2-3 ,percent of the population 
use cannabis products.  There is significant domestic production 
of LSD, amphetamines and similar drugs; drug laboratories are 
regularly raided and dismantled.  Swedish and British authorities 
estimate that 75 percent of all amphetamines in their countries 
are produced in the Netherlands.  Small amounts of cannabis are 
cultivated.

The Netherlands is a major transit and brokering country for 
European chemical exports.  As a member of the EC and the Chemical 
Action Task Force (CATF), it is obliged to adopt chemical controls 
in accordance with the EC chemical regulation and the CATF 
recommendations.

The Netherlands is also a transit point for money laundering, but 
in some instances, funds may be converted within the Dutch 
financial system as well.  Legislation has been drafted which will 
make money laundering a separate and distinct criminal offense; it 
is currently covered by general provisions of law dealing with 
property of criminal origin.

Established cases of corruption among drug enforcement personnel 
are very infrequent and have been confined to a handful of lower-
level officials. 

III. Country Actions Against Drugs in 1992

On November 20, a bilateral agreement on asset sharing and 
forfeiture was signed in Washington by the U.S. Attorney General 
and the Netherlands' Minister of Justice.  The agreement marks an 
important milestone in enhanced law enforcement cooperation with 
the GON and may serve as a valuable precedent with other 
countries.  The agreement will enter into force after ratification 
by the Netherlands.

The GON pursues enforcement cooperation through a variety of 
multilateral mechanisms, including the UNDCP, to which it 
contributed approximately $2 million in 1991, the Dublin Group, 
and the Council of Europe's Pompidou Group.

There is international antidrug cooperation among police and 
customs authorities at the national level with countries such as 
the U.S. (which included improved judicial cooperation under the 
mutual legal assistance treaty), and at local levels through 
cooperation with its German and Belgian neighbors.

Demand Reduction Programs.  Netherlands' demand reduction 
activities, including education, public information and treatment 
programs, are among the most advanced in the world.  School and 
public awareness programs include cannabis products among the 
substances constituting health hazards.  Methadone maintenance and 
other treatment programs are provided to addicts.  Dutch officials 
estimate that about 80 percent of users are reached by the 
Netherlands' extensive drug addiction out-reach program.  The 
Parliament defeated proposals to cut budget outlays for drug 
treatment in December. 

Law Enforcement Efforts.  In 1991, Dutch Customs seized over 2.5 
mt of heroin and cocaine.  In addition, authorities seized more 
than 50 mt of hashish and marijuana.  Most of the heroin and 
cocaine was confiscated in Rotterdam, at Schiphol Airport, and in 
Amsterdam.  Dutch officials believe trafficking by sea is 
increasing, and they are intensifying maritime interdiction 
efforts.  In addition, Dutch Customs has increased the number of 
drug detector dogs used at airports and other entry points.

Dutch law enforcement authorities arrested 29 members of a 
Ghanaian drug gang importing cocaine from Suriname and heroin from 
Southeast Asia via Ghana, Togo, and Nigeria.  

Drug Flow/Transit.  Officials believe that much of the cocaine 
entering Europe is shipped from Suriname.  They are also concerned 
about drugs shipped from Aruba and the Netherlands Antilles.  The 
large amount of containerized shipping, especially in Rotterdam 
through which some one million containers a year pass, is a major 
source of drugs. 

Agreements and Treaties.  The Netherlands is a signatory to the 
1988 UN Convention.  The government hopes to ratify the Convention 
in 1993.  However, under the Dutch constitution, ratification must 
be preceded by conformation of domestic legislation to the treaty 
provisions, a lengthy process.  Implementing legislation is needed 
in the areas of money laundering and chemical controls before the 
Netherlands is able to meet fully the goals and objectives of the 
Convention.

The USG and GON have an extradition treaty dating from 1980 and a 
mutual legal assistance accord.

IV. U.S. Policy Initiatives

The bilateral asset sharing agreement, along with the existing 
mutual legal assistance treaty, will provide a solid legal 
framework for USG-GON antidrug cooperation.  Dutch participation 
in antidrug activities through institutions such as the UN, EC and 
the Council of Europe will further broaden USG and GON cooperation 
against the international drug traffic.

The USG will encourage an active Dutch role in the Dublin Group 
and the UNDCP, and in areas such as money laundering and chemical 
diversion control.  The USG encourages greater GON assistance to 
the major producing and transit countries, especially in areas 
where the Netherlands has particular national interests and 
influence, such as the Caribbean.  

The Road Ahead.  The USG considers it essential that the GON 
ratify the 1988 UN Convention and will encourage it to do so.  It 
will continue close cooperation in the area of law enforcement, 
particularly with the Dutch Central Criminal and Investigation 
Service, which assigns drug liaison officers to the Caribbean and 
the U.S.  The USG looks to the GON's continued active involvement 
in the international antidrug organizations as well as in the area 
of law enforcement, particularly in the Caribbean.  The USG will 
be pressing the GON to be more forthcoming in chemical diversion 
control by participating in international enforcement efforts.
(###)

NORWAY

I. Summary 

Norway is not a significant producer of narcotics or other 
controlled substances, but Norwegians are increasingly concerned 
about the effects of illicit drug usage.  Norway's long coastline 
and its open borders with Russia (Kola Peninsula) and its 
Scandinavian neighbors make it difficult for authorities to 
control smuggling.  With a rise in drug overdose deaths and drug-
related crime, Norwegian law enforcement personnel are pressuring 
the government and the Parliament to devote more resources and to 
pass legislation to counter the drug threat.

The Government of Norway (GON) is active in a number of 
international antidrug organizations including the Pompidou Group 
and the Dublin Group.  It is a contributing member to the UNDCP 
and has provided antidrug assistance to major drug source 
countries in the Andean region and the Golden Triangle.  Norway is 
a signatory to the 1988 UN Convention and hopes to ratify it in 
the spring of 1993.

II. Status of Country

With the exception of some amphetamine production, Norway does not 
produce significant amounts of illicit drugs.  The amount of 
amphetamines produced, however, is probably less than five percent 
of domestic consumption.  Current estimates on amphetamines 
indicate that, while increasing amounts (up to fifteen percent) 
now come from Poland and other East European countries, almost all 
of the remainder is imported from the Netherlands.  The drugs of 
choice in Norway, as reflected in seizure statistics for 1991, are 
cannabis products (393.3kg), amphetamines (19 kg), and heroin (10 
kg).

In Oslo, drug seizures and drug-related indictments increased with 
1,024 indictments in 1992 compared to 847 in 1991; while heroin 
seizures rose from 1.4 kg to 1991 to 1.6 kg in 1992.   Fewer 
cocaine seizures in 1992  (.6 kg) than in 1991 (3.9 kg) suggest 
that a predicted wave of cocaine use has not yet hit Norway.

Norwegians are concerned about the steady increase in drug-related 
deaths and criminal activity.  Over a ten-year period, the 
national annual total of drug-related deaths rose from 25 in 1982 
to 96 in 1991.  Criminal activity over a 30-year period increased 
from some 39,000 reported cases in 1960 to 236,000 in 1990.  
Norwegian officials believe a major reason is the increased drug 
problem.

Norway is not a significant producer or transit point of precursor 
chemicals.  It does have a system of voluntary control of 
chemicals among producers and brokers. 

Official corruption among Norwegian officials is not considered a 
problem.

III. Country Actions Against Drugs in 1992

Norway's Minister of Justice has announced that drug-related 
sentences would be increased, with the heaviest meted out to 
dealers and traffickers. This tougher stance was evident when a 
Syrian drug dealer received 15 years for smuggling 2 kg of heroin.  
Several other persons involved in the same case received a total 
of 50 years in prison, very long sentences by Norwegian standards.  
The Minister also announced the need for stronger banking laws 
that would criminalize money laundering.

Banks are required to report to the Norwegian Central Bank any 
international cash transactions over 25,000 kroner  ($4,000) and 
other international monetary transactions which exceed 60,000 
kroner ($10,000).  The Minister of Justice established a special 
unit of experts for investigation and prosecution of economic and 
environmental crime which apparently has produced good results 
over the past two years, and is continuing to work with the banks 
and the Prosecutor General.  

Law Enforcement Efforts.  Oslo police officials report that their 
antidrug units accounted for 20 percent of arrests in Oslo in 
1992. 

Norway's law enforcement officers use a variety of law enforcement 
tools, including drug detector dogs.  There are also asset seizure 
laws on the books but more training needs to be conducted to teach 
law enforcement officials on how to apply them.

Norwegian law on asset seizure in drug cases is adequate to ensure 
fulfillment of both international and national obligations.  Under 
present law, the government can seize and retain any assets which 
can be linked to criminal activity. 

The Director General of Prosecution, an autonomous entity 
responsible for enforcement of existing laws, takes an aggressive 
approach to asset seizures; the value of assets seized has 
increased in recent years. At the same time, some local officials 
may not be fully aware of the availability of this anti-
trafficking weapon. 

The GON cooperates with international efforts and makes use of 
information from foreign enforcement agencies.  The GON is 
currently engaged in bilateral enforcement efforts with the UK.  
Local law does not permit sharing of seized assets with other 
countries.  There is strong cooperation with government efforts 
from the banking community. 

Drug Flow/Transit.  Drugs are smuggled in at airports from the 
Middle East and other major source regions, across the Kola 
Peninsula border with Russia, and by ferries from Denmark.  GON 
officials have expressed concern that the EC's open border policy 
in 1993 will result in increased amounts of drugs entering Norway.

Demand Reduction Programs.  In response to growing drug-related 
deaths, the GON proposed opening a methadone clinic.  Some health 
and social welfare authorities in Norway have expressed concern 
over the morality of supplying narcotic substances to individuals.  
Although controversy over the methadone program continues, the GON 
has launched a small pilot project.

Treaties and Agreements.  The GON signed the 1988 UN Convention 
and expects to ratify it in the spring of 1993.  Implementing 
legislation is needed for ratification, especially in the area of 
money laundering.  With the exception of money laundering, Norway 
is generally meeting the goals and objectives of the convention.  
The U.S. and Norway have an extradition treaty dating from 1977.  
Norway has signed the 1990 EC directive on money laundering and 
seizure.  Norway is a member of Interpol, the Customs Cooperation 
Council, and the Nordic Coordinating Committee on Drug Abuse; it 
is a member of the Pompidou Group, which it chairs for the 1991-93 
term, and became a member of the Dublin Group in October. 

IV. U.S. Policy and Initiatives.

There have been no important cases of cooperation between the GON 
and the USG, but the GON's readiness to cooperate in this area is 
evident from its cooperation with other nations in money 
laundering cases in the past, such as the 1992 arrest and 
deportation of a German suspected of non-drug-related money 
laundering.  The USG does not provide antidrug assistance to 
Norway.  The DEA and Norwegian law enforcement officials share 
information.

The Road Ahead.  The USG looks forward to working with Norway in 
the Dublin Group and in other international antidrug 
organizations.  The USG considers it important that Norway ratify 
the 1988 UN Convention in 1993.  The USG will encourage Norway 
along with other West European countries, to take the lead in 
assisting the countries of the former Soviet Union with their 
antidrug efforts.
(###) 

POLAND

I.  Summary

Poland is playing an increasingly important role in the drug trade 
as a transit area and an amphetamine producer for Western Europe.  
The political changes in Eastern Europe have prompted Southwest 
Asian heroin traffickers to expand transit routes through Poland 
to Western Europe.  Cocaine traffickers also have begun to exploit 
Poland's relaxed border controls.

Economic issues dominated the Government of Poland's (GOP) 
domestic agenda during 1992, limiting attention to drug problems.  
Moreover, the GOP's antidrug efforts have been limited by manpower 
and resource shortages.  There has been little progress towards 
establishing a comprehensive antidrug strategy.  Drug trafficking 
is illegal in Poland, but possession of drugs for personal use is 
not.  

II.  Status of Country 

Political changes and the elimination of enforcement forces of the 
former communist regime have made Poland increasingly vulnerable 
to Turkish and other heroin traffickers.  Traffic in the past was 
confined to smuggling in bonded (TIR) trucks on main highways 
through the Balkans.  The open borders and removal of travel 
restrictions have allowed traffickers to expand their smuggling 
operations, using private vehicles and new routes.  Nigerian, 
Indian, Pakistani, Russian,and Turkish networks are now exploiting 
Polish commercial airlines, while merchant vessels move heroin 
through Poland to Western Europe.  

South American cocaine traffickers are also beginning to gain a 
foothold on the continent through Poland.  At Gdansk, Polish 
authorities seized some 100 kg of cocaine transported from 
Colombia on a Polish ocean liner.  A similar 100-kg cocaine 
seizure made in Czechoslovakia is believed to have been part of an 
earlier shipment through Gdansk.

Poland also has emerged as a drug producer.  West European 
authorities are concerned about Poland's growing illicit 
amphetamine industry, which press reports note is second only to 
that of the Netherlands.  The production, trafficking, and 
distribution of amphetamines is primarily controlled by Polish 
criminal organizations which are often involved in other types of 
illegal activity.  Current regulations are not adequate for the 
prosecution of persons engaged in amphetamine production, and 
there are few controls on precursor and essential chemical 
exports.  There are also indications that a crude opium 
derivative, kompot, continues to be produced in Poland.  West 
German authorities noted the first import of kompot last year when 
a German citizen died from an overdose.

Most of the heroin and cocaine transiting Poland is destined for 
Western Europe.  But drug abuse in Poland is also rising, 
according to both Polish health and law enforcement authorities.  
Health experts estimate that drug users number approximately 
200,000 in 1992.  The most widely used drug is kompot.  Polish 
authorities have noted an increase in the number of HIV patients 
who contracted it through needle-sharing.  

Bank officials suspect that drug money laundering occurs, but do 
not have any statistics on its extent.  Poland does not have laws 
which make money laundering illegal although Parliamentary 
committees are currently reviewing several proposals aimed at 
curtailing it.  

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  The recently formed Suchocka government has 
been preoccupied with political and economic reform, and has not 
yet formulated long-range antidrug plans.  Moreover, there are few 
indications that the GOP views the expanding drug problems as a 
threat. 

Law Enforcement Efforts.  There is no lead agency on narcotics 
issues.  The Polish Police, Justice Department, and Security 
Service share responsibility for drug enforcement.  Police 
officials give higher priority to fighting organized crime, and 
Customs officials focus on interdicting alcohol and weapons 
shipments.  Drug-related investigations are particularly difficult 
without legal provisions that allow for controlled deliveries.  
And while drug trafficking is illegal, possession of all narcotic 
drugs and psychotropic substances for personal use is legal in 
Poland.

Corruption.  The USG is unaware of any reports of official 
narcotics-related corruption in Poland.

Agreements and Treaties.  The GOP has signed, but not yet 
ratified, the 1988 UN Convention and is a party to the 1961 Single 
Convention on Narcotic Drugs (but not its 1972 Protocol), and the 
1971 UN Convention on Psychotropic Substances.  Poland's antidrug 
law must be modified before the GOP can ratify the 1988 
Convention.  The GOP is working with the UNDCP to identify the 
necessary legislative changes.  Effective implementation of the 
Convention, once ratified, will require, inter alia, stricter 
controls on narcotics trafficking and production, more effective 
law enforcement, and criminalizing of narcotics possession, 
including for personal use.  The EC's association agreement with 
Poland also includes provisions for antidrug cooperation and 
assistance.  Poland and the U.S. are parties to an extradition 
treaty signed in 1927.  

Cultivation and Production.  There have been unconfirmed reports 
of small amounts of illicit opium poppy cultivation in Poland.  It 
is unclear whether this is cultivated for illicit purposes or 
diverted from licit fields.  The Polish laws are vague with regard 
to opium poppy cultivation.  Farmers are required to register 
their licit fields, but there is little or no enforcement of this 
law.  Health and law enforcement officials note that kompot is 
produced throughout Poland, a homemade mixture of boiled poppy 
straw that some experts believe causes the same effects as heroin.   
Demand Reduction Programs.  There are several demand reduction 
treatment programs, but they are understaffed and other resources 
are limited.  Poland receives antidrug aid from several West 
European countries, including the UK and Germany, and from the 
UNDCP.  Germany has offered DM 4 million to Polish Police for 
antidrug efforts.  

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  The USG continues to promote increased GOP 
attention to the drug problem as well as antidrug cooperation by 
Western Europe nations most directly affected by heroin smuggling 
through Poland.  The USG is also encouraging support from the 
UNDCP to assist Poland's Customs and Police with detection 
equipment and training.  

Bilateral Cooperation.  Against this backdrop, the USG increased 
cooperation with Poland's antidrug agencies in 1992.  Over the 
past three years, the USG has provided INM-funded assistance 
through the DEA and U.S. Customs Service for Polish enforcement 
and customs officials to participate in a regional advanced drug 
enforcement school, and a seminar on precursor and essential 
chemical controls held in Warsaw last May.  The head of Polish 
Customs was invited to the U.S. as part of the Executive 
Observation Program.  In addition, USAID funded a needs-assessment 
study of demand reduction requirements in Poland. 

The Road Ahead.  The USG will continue to encourage the GOP to 
expand its drug control activities, to establish the necessary 
legislative and institutional capabilities, and to ratify and 
implement the 1988 UN Convention and accede to the 1972 Protocol 
to the 1961 Single Convention.  A compliance manual for the 1988 
UN Convention prepared by the DOJ has already been forwarded to 
the GOP for this purpose.  The Financial Action Task Force, with 
USG encouragement and INM funding, is conducting a seminar on 
countering money laundering.  

In addition, the USG will urge the GOP to give more attention to 
creating a cadre of professional law enforcement officials to 
target drug problems.  INM will provide limited law enforcement 
and demand reduction training and equipment.(###)

PORTUGAL

I.  Summary

Portugal increasingly is an important transit point for illicit 
drugs, particularly cocaine from South America destined for 
Western Europe.  Some cocaine has been shipped through Portugal to 
the U.S.  Rising domestic consumption of cocaine concerns 
Portuguese authorities.  Hashish, the traditional drug of choice, 
is readily available and affordable.  The number of heroin 
addicts, drug seizures and arrests are increasing.  The Judiciary 
Police (PJ) has been increasingly active in drug enforcement.  New 
drug control legislation will aid police in their drug 
investigations.  The Government of Portugal (GOP) traditionally 
has focused on demand reduction.  However, Portuguese authorities 
prosecute traffickers vigorously and cooperate fully with European 
and USG law enforcement agencies.  The GOP is also active in 
several international drug-control organizations, including the 
Dublin Group.  The Prime Minister recently appointed a new 
domestic drug policy coordinator/commissioner and raised the level 
of the drug issue on Portugal's national agenda. 

II. Status of Country 

Portugal is primarily a narcotics transit country.  Large drug 
seizures, particularly of cocaine, are becoming common, as 
indicated by the GOP's 1.8 mt seizure off the coast in 1992. 

The country has a substantial heroin addict population.  Reliable 
figures on the extent of domestic drug use are not available, but 
Portuguese authorities believe it may be extensive and that it is 
increasing, including the use of cocaine.   However, GOP 
authorities still consider hashish the preferred drug  among young 
Portuguese.

III.  Country Actions Against Drugs in 1992

Policy Initiatives and Accomplishments.  A new money laundering 
law took effect in January 1993, which conforms to the EC 
directive on money laundering, including provisions for the 
seizure of assets of convicted narcotics traffickers.  In 
addition, the GOP will soon implement a new drug law which 
provides for sentences of up to 20 years for traffickers, up to 15 
years for money launderers, and authorizes the police, for the 
first time, to infiltrate trafficking organizations.

Law Enforcement Efforts.  The GOP has responded vigorously to 
growing illicit narcotics traffic.  For the first 9 months of 
1992,  police arrested 3,275 traffickers and users.  The PJ is in 
charge of all drug-related investigations; it is forming a special 
unit to enforce the new money laundering law.  Portuguese 
authorities seized 1.9 mt of cocaine and 48 kg of heroin.  

Although Portugal is a producer of some essential and precursor 
chemicals, diversion is not considered a problem.

Corruption.  Corruption among senior Portuguese officials is not 
considered a problem. 

Drug Flow/Transit.  Portugal's geographic location, with long, 
easily permeable sea and land borders, facilitates the transit of 
illicit drugs.  The lack of effective border controls and, until 
recently, the absence of a money laundering law have made Portugal 
an attractive country for the traffickers.  Hashish enters 
Portugal by sea (usually fishing trawlers) from Morocco and is 
trucked to Spain and Northern Europe.  Cocaine from Latin America 
enters Western Europe in increasing quantities through Portugal by 
air and sea.  

Demand Reduction Programs.  The Prime Minister recently 
restructured the National Drug Policy Council, giving it increased 
authority to coordinate the activities of the six ministries 
involved in demand reduction and treatment.  The Council is 
involved in reduction and prevention programs, including drug 
education, treatment, and family support programs.

Agreements and Treaties.  Portugal is a party to the 1961 Single 
Convention on Narcotic Drugs and the 1971 Convention on 
Psychotropic Substances.   It ratified the 1988 UN Convention in 
1991.  Portugal generally has complied with the provisions of 
these conventions. 

There are no recent bilateral narcotics agreements between the USG 
and the GOP, although there is a 1929 agreement for the exchange 
of certain information regarding traffic in narcotic drugs.  The 
U.S.-Portugal Extradition Treaty entered into force in 1908.

Portugal is active in several international antidrug  
organizations.  It is the Dublin Group's regional chair for 
Africa, and headed the EC's Trevi working group on narcotics 
during the first six months of 1992 when it was President of the 
EC. 

IV.  U.S. Policy Initiatives and Programs

The USG, both bilaterally and in various multilateral fora, such 
as the Dublin Group, will continue to work with Portugal in 
support of its drug control efforts.

The Road Ahead.  The USG anticipates continued good working 
relationships with the GOP's enforcement authorities and the GOP's 
active participation in support of the Dublin Group and other 
international drug control organizations. 
(###)

ROMANIA

I.  Status of Country 

Drug trafficking through Romania appears to be accelerating.  The 
elimination of internal transportation controls, which essentially 
confined smuggling to bonded (TIR) trucks on main highways, have 
made it easier for smugglers to operate.  There are indications 
that the civil war in Yugoslavia has forced heroin traffickers to 
reroute heroin shipments northward through Romania from Turkey and 
through the Balkans into Germany.  An increase in heroin smuggling 
across the Black Sea on trucks ferried from Istanbul to Constanta, 
Romania, also has been detected.

Most heroin smuggling appears to be dominated by well-established 
Turkish drug trafficking organizations, but there has also been an 
increase in East European networks that include Romanians.  

Press reports have noted increased concern by health officials 
that drug abuse, particularly of opiates, is growing, but there is 
little information on the extent of the problem.

 II.  Country Action Against Drugs

Policy Initiatives.  The new Romanian Government (GOR) has begun 
to recognize the need for increased antidrug efforts.  It recently 
became a party to all of the UN drug conventions, including the 
1988 Convention.  The GOR has also indicated a willingness to 
increase international antidrug cooperation.  The GOR acted 
promptly in response to a USG request to extradite an American 
citizen wanted on drug trafficking charges.

However, a lack of resources and sustained high-level commitment 
has prevented the development of a comprehensive antidrug 
strategy.  The GOR has not yet established controls to monitor the 
export of chemical shipments or financial transactions.  

Corruption.  The GOR has had little success in addressing official 
corruption, which is rampant at all levels.  Nevertheless, the USG 
is unaware of any reports of narcotics-related corruption in 
Romania.

Agreements and Treaties.  On January 23, 1993, the GOR became a 
party to the 1988 UN Convention, the 1961 Single Convention on 
Narcotic Drugs and its 1972 Protocol, and the 1971 UN Convention 
on Psychotropic Substances.  Effective implementation of the 1988 
Convention will require, inter alia, stricter law enforcement 
efforts, controls for monitoring the shipment of chemicals and 
financial transactions, anti-corruption initiatives, and tougher 
penalties for drug trafficking.  

Cultivation and Production.  There have been unconfirmed reports 
of small amounts of illicit poppy cultivation in Romania.

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  The USG promotes increased GOR attention to 
the drug problem.  The USG also will promote antidrug cooperation 
by  Western European nations most directly affected by heroin 
smuggling through Romania.  The USG is encouraging support from 
the UNDCP to assist Romania's Customs and Police with detection 
equipment and training.  

The USG increased cooperation with Romania's antidrug agencies in 
1992.  Over the past three years, the USG has provided INM-funded 
assistance through the DEA and U.S. Customs for Romanian law 
enforcement and Customs officials to participate in an advanced 
drug enforcement school, and in a seminar on chemical controls 
held in Warsaw last May.  INM also provided Romania with some 
limited technical equipment, including narcotics test kits.  

The Road Ahead.  The USG will encourage the GOR to expand its drug 
control activities and establish the necessary narcotics control 
legislative and institutional framework.  In 1993, the USG will 
urge Romania to implement the 1988 UN Convention.  A compliance 
manual for the 1988 UN Convention prepared by the DOJ has already 
been forwarded to the GOR for this purpose.  

In addition, the USG will urge the GOR to create a cadre of 
professional law enforcement officials to target drug problems and 
will continue to provide limited law enforcement and demand 
reduction training and equipment.
(###)

RUSSIA

I.  Summary

The demise of the Soviet Union, increased political turmoil, the 
new convertibility of the ruble, and the relaxation of strong 
border and internal controls have led to escalating drug 
trafficking and abuse in and through Russia.  According to Russian 
officials, over 15 mt of hashish, opium, heroin, and cocaine were 
seized in Russia over the past five years, much of it from Central 
Asia, Pakistan, Afghanistan and the Ukraine.  Russian authorities 
believe that the increased transit trade is fueling a growing 
domestic drug market which they cite as the largest in the Newly 
Independent States (NIS).  Concern over these problems has 
prompted Moscow to increase its antidrug efforts and pursue 
increased counternarcotics cooperation with the West and within 
the NIS.  

Over the past year, the Russian Government (GOR) has accelerated 
its antidrug campaign, signaling an increased high-level 
commitment to targeting the threat.  Recent efforts include the 
expansion of the antidrug force, increased enforcement efforts, 
and the drafting of new narcotics control legislation.  There is 
growing sentiment within the Ministry of Interior (MVD) that 
recent legislation allowing for possession of drugs for personal 
use must be repealed.  Further domestic efforts are needed to 
institute controls to monitor precursor and essential chemicals 
and financial transactions.  

Russia is a party to the 1988 UN Convention, the 1961 Single 
Convention on Narcotic Drugs and its 1972 Protocol, and the 1971 
Convention on Psychotropic Substances.  It is making strides in 
meeting the goals and objectives of the 1988 UN Convention.  
Within the NIS, Moscow is promoting greater regional cooperation 
to target rising trafficking from Central Asia and elsewhere.

II.  Status of Country 

Soviet officials noted increased drug smuggling several years ago, 
but recent political changes and relaxed border controls have left 
Russia more open to the drug trade.  Heroin and other drug 
smugglers appear to be accelerating their efforts to use Russia as 
a conduit for drugs, including heroin, hashish, and opium straw, 
from Afghanistan, Pakistan, and Central Asia to the West.  A 
record seizure of over one mt of cocaine on the Finnish border in 
February signals efforts by South American cartels to establish a 
foothold in Russia.  Numerous drug couriers also have been 
discovered on Aeroflot flights transiting Moscow.

Russian officials believe, however, that their principal domestic 
drug threat is from opium poppy and cannabis grown in Russia, 
Ukraine, and the Central Asia States, as well as from Afghan 
heroin.  In 1990, the USSR reported 1.5 million drug users, 
including Afghan war veterans.  The new regime in Russia reports 
23,000 registered users, but acknowledges that drug use, including 
opium poppy straw extract and heroin, is much higher.  Moreover, 
drug use is increasingly prevalent in rural areas as well as in 
the major cities. 

Information on trafficking groups is limited.  Most appear to 
operate locally, but Russian authorities believe that many of the 
small groups in the Central Asian States and Ukraine have formed 
links with Russian distributors in key Russian cities. 

The manufacture and trafficking of psychotropic drugs is another 
emerging drug threat.  In the past year, authorities have 
discovered over 47 laboratories that produced fentanol, a 
barbiturate, in and around Moscow.  Equipment has been stolen from 
government laboratories to set up small-scale amphetamine 
operations for local markets.

Russia's chemical industry exports small quantities of  precursor 
and essential chemicals, primarily acetic anhydride, to industries 
in Eastern Europe and Finland.  

Russia is not an important financial center, but its status as a 
money laundering center is likely to grow, according to GOR 
estimates.  The MVD reports efforts by foreign organized crime 
groups to establish links in Russia to launder drug money.  The 
lack of regulatory controls or legislation inhibit government 
efforts to target drug money laundering.

III. Country Actions Against Drugs in 1992

Policy Initiatives.  Although Russian drug control programs suffer 
from the lack of an overall strategy and some basic resources, 
Moscow is shoring up its domestic control program.  The GOR is 
creating a regional enforcement training center and has 
established centers in ten priority regions to coordinate 
government efforts.  Legislation has been drafted targetting 
organized crime and drug traffickers, and the drug control office 
is working to reinstate the comprehensive ban on drug use that 
ended when Parliament decriminalized possession for personal 
consumption in 1991.

Law Enforcement Efforts.  The GOR is bolstering its law 
enforcement efforts and recently increased the number of drug 
enforcement officers from 800 to over 1,500.  Operations against 
drug suppliers and traffickers are a priority, and measures to 
improve security at pharmacies and increase surveillance at 
airports and borders have been instituted.  The GOR continues to 
eradicate opium poppy in southern Russia.  

Moscow is seeking to orchestrate regional antidrug efforts and 
greater counternarcotics cooperation with the West.  Over the past 
year, the government hosted three regional conferences and 
sponsored a NIS cooperation agreement to exchange antidrug 
information.  In addition, Moscow plans to invite students from 
other NIS states to participate in its new regional drug law 
enforcement school.  A number of narcotics control agreements 
signed by the USSR continue in force with countries including 
Spain, Austria, Argentina, Italy, the UK, Canada, and the U.S.  
The GOR also gives high priority to multilateral programs, 
including Interpol, the UN Commission on Narcotic Drugs, and the 
UNDCP.  

Cultivation and Production.  Moscow continues the USSR's ban on 
opium poppy and cannabis cultivation.  The GOR prosecuted 60 cases 
of illicit opium poppy and 4,500 cases of illicit oil poppy (a 
less potent form of  opium poppy) cultivation in 1992.  
Authorities believe that opium and oil poppy cultivation exists in 
southern Russia for cooking purposes and for the production of an 
illicit opium poppy straw.  A small amount of opium poppy is grown 
for agricultural and scientific research.

Corruption.  President Yeltsin issued a decree in November aimed 
at curbing corruption and has taken a number of steps against 
government corruption.  The USG has no reports of high-level 
officials involved in the drug trade.

Agreements and Treaties.  Russia is a party to the 1988 UN 
Convention, the 1961 Single Convention on Narcotic Drugs and its 
1972 Protocol, and the 1971 Convention on Psychotropic Substances.  
The GOR is drafting a new penal code which is expected take into 
account the UN accords.  However, effective implementation of the 
1988 UN Convention will require, inter alia, stricter controls on 
trafficking and production, more effective law enforcement, and 
imposition of criminal penalties for narcotics possession.

Demand Reduction Programs.  The Moscow City Council supports 
several new school-based drug prevention programs and a number of 
NGOs are now sponsoring demand reduction programs throughout 
Russia.  

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  In 1992, the USG opened a narcotics control 
dialogue with the new Russian regime.  Initial efforts have 
focused on identifying problems, possible areas for assistance, 
and the full implementation of UN drug conventions.  In 1992, INM 
funded a DEA basic training seminar in Moscow.  Russian 
participants attended a DEA-sponsored meeting on precursor and 
essential chemicals in Warsaw.  DEA also instructed an INM-funded 
basic law enforcement session.  The USG also encouraged Western 
European nations most directly affected by drug smuggling through 
Russia to take a more active role in assisting the GOR.

The Road Ahead.  The USG will encourage Russia to expand its drug 
control activities, and to establish the necessary legislative and 
institutional antidrug framework.  An implementation manual for 
the 1988 UN Convention prepared by the U.S. Department of Justice 
is now being translated into Russian, and will be forwarded to 
Russia and other NIS states in the near future.

INM plans to contribute $400,000 to a UNDCP program for the NIS as 
well as some bilateral law enforcement training, including a DEA 
training course in Moscow in 1993.
(###)

SPAIN

I. Summary

Spain has become a principal gateway for cocaine shipped to 
Europe.  The U.S. Drug Enforcement Administration (DEA) estimates 
that roughly 55% of the cocaine destined for the European market, 
largely from the Cali and Medellin cartels, flows through the 
Iberian Peninsula.  Spain also is a transit point for hashish from 
the Maghreb and heroin from Asia.  Spanish interdiction efforts 
have stopped some large shipments of cocaine, heroin, and hashish. 
Heroin is the primary drug of abuse, but cocaine use is on the 
rise as is public concern about illicit drugs.  Spanish officials 
traditionally have preferred demand reduction and rehabilitation 
rather than by law enforcement and criminal prosecution.  Spain 
ratified the 1988 UN Convention in 1990, and in 1992 passed 
special legislation on money laundering, asset forfeiture, and 
precursor chemicals in compliance with European Community (EC) 
directives.  There were some notable successes in international 
interdiction in 1992, including Spanish cooperation and active 
participation in a transatlantic maritime cocaine smuggling case 
coordinated under the auspices of Article 17 of the 1988 UN Drug 
Convention.  USG officials believe that Spanish officials are 
placing a higher priority on enforcement and more aggressive 
prosecution of traffickers and money launderers than in the past.  

II. Status of Country

Spain is an important transit country for South American cocaine 
entering Europe.  Spanish authorities believe its use is 
increasing, but they still consider heroin abuse a larger problem.  
Hashish and marijuana remain abundant despite a crack-down on 
hashish trafficking.  Spanish authorities also see an increase in 
the use of synthetic drugs such as "ecstasy".  Officials are 
concerned about even greater trafficking through Spain as a result 
of the EC's 1993 open border policy and believe more EC funds 
should be directed towards combatting the drug problem in a 
borderless Europe. 

International narcotics trafficking organizations increasingly use 
Spanish multinational banks to launder illicit profits.  Spanish 
officials appear willing to prosecute financial crimes, as 
illustrated by their participation in DEA's "Operation Green Ice", 
an international money-laundering sting operation.

In 1992 Spain passed special legislation on precursor chemicals in 
compliance with EC directives.  However, Spain is not considered a 
major diverter of precursor chemicals. 

III. Country Actions Against Drugs in 1992 

Spain has actively participated in various international fora 
including the United Nations International Drug Control Program 
(UNDCP), the Dublin Group, and the European Committee to Combat 
Drugs (CELAD).  In October, Spain hosted a high-level USG 
delegation which discussed money laundering and ways to combat the 
problem.  In addition, senior Spanish and USG anti-drug 
authorities met in Washington in May to discuss a number of 
narcotics related issues, including the U.S.-Spain Demand 
Reduction Agreement, signed in November 1991. 

Accomplishments.  In December, Spain passed special narcotics 
legislation to comply with EC directives.  To combat money 
laundering, Spanish banks instituted a policy of requiring 
identification from persons depositing currency in excess of 
$10,000.  The Spanish Parliament is currently debating a new penal 
code, including legislation to allow for easier searches without 
warrants based on probable cause.

Law Enforcement Efforts.  Although total 1992 seizures were down 
from prior years, increased international cooperation and 
coordination efforts against the major trafficking organizations 
are expected to strengthen Spain's ability to combat the 
traffickers.  A newly established "Civil Guard of the sea" is 
expected to boost Spain's maritime surveillance capabilities as it 
grows from 13 to 77 vessels and its personnel is increased from 
338 to 2,245 by 1995.

In April the U.S. Coast Guard and Navy at the request of the GOS, 
assisted in the interception in international waters of a Spanish 
flagged ship suspected of smuggling a substantial amount of 
cocaine from Colombia to Spain.  This was the first time a foreign 
country requested assistance to intercept a foreign flagged vessel 
under the auspices of Article 17 of the 1988 UN Convention.  The 
operation resulted in the arrest in Spain of 18 persons suspected 
as being major importers of hashish and cocaine into Spain.

Corruption.  Although corruption is not considered a major 
problem, in 1992 two high ranking officials in the Guardia Civil 
counter-narcotics unit were accused of paying  informants with 
confiscated narcotics because, the officers claimed, of budgetary 
constraints.

Agreements and Treaties.  Spain ratified the 1988 UN Convention in 
1990 and is generally meeting all the goals and objectives of this 
convention.  In 1992, the Spanish Parliament passed a special 
package of narcotics legislation in order to bring Spain into 
compliance with EC directives.  Spain also ratified the U.S./Spain 
MLAT in 1992, and in 1991 it signed the U.S./Spain Demand 
Reduction Agreement. 

Cultivation.  There is no reported illicit cultivation of illegal 
drugs in Spain.  However, police have uncovered an insignificant 
number of small drug processing laboratories.

Drug Flow/Transit.  According to DEA estimates, 55% percent of 
cocaine imported for the European market flows through the Iberian 
Peninsula, the bulk of which arrives via the Galician coast in 
northwestern Spain.  Most of the hashish entering the country 
crosses the Mediterranean from source countries in North Africa.  
Heroin enters the country through the traditional Balkan route, 
via Germany and finally into Spain.  A smaller but growing amount 
of heroin comes via maritime routes from Lebanon.  Smaller amounts 
of the drug are intercepted at the major international airports. 

Demand Reduction.  Spain emphasizes prevention and rehabilitation 
over interdiction and prosecution.  Although sale and trafficking 
of illicit substances is a criminal offense, possession and 
consumption of narcotics are subject only to administrative 
penalties, i.e. fines.  Spanish officials do not foresee any 
changes in existing policy.  Encouraged by positive results in the 
United States, Spanish officials have expressed an interest in 
learning more about drug abuse educational programs in American 
schools. 

IV.  U.S. Policy Initiatives and Programs 

The U.S.-Spain bilateral cooperation on drug abuse is well 
established.  Spanish narcotics officials participate in most 
major multilateral narcotics organizations and generally support 
USG policy goals and initiatives.  The USG will encourage close 
cooperation and coordination with the Spanish Government for 
extradition requests under a USG and GOS extradition treaty signed 
in 1970.  Under the US/Spain Demand Reduction Agreement, the USG 
authorities will encourage bilateral exchanges of policy level and 
scientific delegations with the ultimate goal of reducing demand 
and identifying better and more effective treatment methods. 

Road Ahead.  The USG looks forward to expanding existing bilateral 
anti-drug efforts and identifying new areas of cooperation with 
the Government of Spain and USG.  This includes encouraging Spain 
to take a more active leadership role in the field of 
counternarcotics policy and enforcement in Latin America where it 
has historical cultural ties. 
(###)

SWEDEN

I.  Summary

Sweden is not a significant drug producer, transit country for 
U.S.-bound drugs, or a money laundering center.  Amphetamines and 
cannabis are the major drugs of abuse, although heroin is also 
available.  Recently there has been an increasing flow of drugs to 
Sweden from transit points in  Eastern Europe and the Balkans.  
Cocaine smuggling is on the rise, with cocaine now an established 
drug in the Swedish market.  

Although Government of Sweden (GOS) statistics show that overall 
drug use has remained stable, with a decline in intravenous heroin 
use among the younger Swedes, Swedish drug enforcement officials 
believe the data understate the problem.  Drug treatment 
facilities and methodology are improving, but have not kept pace 
with the demand for treatment.  The GOS is assuming more 
responsibility for demand reduction, as local programs suffer from 
budget cutbacks needed to trim public sector expenditures.

Sweden remains active in international antidrug organizations.  
Cooperation continued to be excellent between the USG and the GOS.  
Sweden ratified the 1988 UN Convention in 1991.

II. Status of Country

Sweden is not noted for drug production, trafficking, money 
laundering, or diversion of precursor chemicals.  However, drug 
use in Sweden is widespread.  The drugs of choice are amphetamines 
and cannabis.  Despite a marked increase in drug seizures during 
1990-92, overall drug abuse has remained statistically stable.  
The mix of drugs abused, however, is changing.  Swedish Health 
Ministry officials report that the intravenous heroin-user 
population is growing older, with fewer young persons using the 
drug; the estimated heroin-user population has declined from about 
4,000 in 1979 to an estimated 2,000.  Public concern over the 
spread of the HIV/AIDS virus has probably been the main factor for 
the decline.  Swedish officials are concerned, however, by the 
spread of abuse of other drugs among the middle class.

The diversion of precursor and essential chemicals is not 
widespread.  As part of a Nordic initiative among police and 
customs authorities, Sweden participates in a monitoring program 
for imports and exports of all the chemicals recommended for 
control by the G-7 Chemical Action Task Force (CATF), plus six 
additional chemicals. 

Sweden is not an important financial or narcotics money laundering 
center.  In 1991, the Swedish Parliament amended its laws to make 
money laundering a crime in conformity with the 1988 UN 
Convention.  Large currency transactions must be registered with 
the Central Bank as well.  Swedish police cooperate closely with 
the DEA to prevent money laundering by Swedish banks and Sweden is 
an active member in the G-7 Financial Action Task Force (FATF).

Current Swedish laws permit seizure of any assets, including 
conveyances used to transport narcotics, property, goods, real 
estate, and intangible property such as bank accounts.  Legitimate 
businesses owned by a drug criminal can be seized.  The government 
receives proceeds from narcotics asset seizures and forfeitures, 
as directed by the courts.  In 1990, the Swedish police seized 
over $600,000 in connection with drug seizures, a marked increase 
over previous years.

Corruption among Swedish officials is not considered a problem.

III. Country Actions Against Drugs in 1992 

Accomplishments.  The GOS appointed a working group to study the 
CATF recommendations on the control of precursor and essential 
chemicals which will result in new legislation in early 1993, 
supplementing initiatives already taken to comply with the CATF 
recommendations.  The aim of the study group is to harmonize the 
new law with the EC directives on chemical control.

During FY 1991/92, Sweden contributed approximately $7.4 million 
to the UNDCP and made experts available to its projects.  In FY 
1990/91 and 91/92, Sweden donated approximately $1.6 million to 
the World Health Organization's global Program on Substance Abuse.  
Sweden participates in the committee for "European Cooperation in 
the Struggle Against Drug Abuse and Illicit Traffic" and the 
Council of Europe's Pompidou Group.  It is a member of the UN 
Commission on Narcotic Drugs (CND) and participates in the CND 
subcommittee for the Near and Middle East.  It is also a member of 
the Dublin Group.   Drug Flow/Transit. Sweden is mainly a 
destination for narcotics coming overland, by air and by ferry 
from Poland, Denmark and Finland (transshipped from Russia).  
Narcotics are sent through the mail and hidden in commercial 
goods.  Much of the heroin, amphetamines and cannabis transit the 
Netherlands.  Cannabis couriers travel from Morocco through Spain, 
from Lebanon and Southeast Asia, often via the Netherlands and 
Denmark.  Within Sweden, drugs are distributed mainly in the three 
largest cities of Stockholm, Gothenburg and Malmo.  

Swedish Customs reports that about 70 percent of the amphetamines 
in Sweden originates in the Netherlands, and 20-25 percent come 
from Poland directly or via Germany, often smuggled in cars.  
Heroin reaching Sweden mainly comes via East and West Africa.  
During the fall of 1992, Sweden saw a wave of heroin brought by 
East Africans through Zurich, Copenhagen, London, or Turkey.  In 
addition, Yugoslav smugglers bring heroin from the Golden 
Triangle, while Iranians smuggle heroin from Turkey and Iran.

Cocaine smuggling has increased so much that the drug is now 
considered to be established on the Swedish market.  Earlier, 
cocaine came directly from South America, but recently it has been 
smuggled from Africa concealed in suitcases or by mail.  Larger 
quantities have been hidden in  containerized commercial goods 
e.g. 150 kg in asphalt drums and 40 kg among raisins.  Swedish 
authorities believe that cocaine shipments are repacked in the 
port of Gothenburg and transported by automobile to Western 
Europe.

Demand Reduction Programs.  The GOS emphasizes drug abuse 
prevention combined with a restrictive drug policy, enforcement 
measures, and drug rehabilitation.  The dissemination of 
information on the dangers of alcohol, narcotics, and tobacco is 
compulsory in elementary schools, and drug education continues in 
secondary schools.  The government has the primary responsibility 
to reduce both supply and demand, with emphasis on the latter.  
Political, religious, sports, and other organizations receive 
government subsidies to carry out information and activity 
programs aimed at youth and parents.  Various private 
organizations are also active in drug abuse prevention and public 
information.  The publicly-owned radio and television networks 
occasionally present programs on the dangers of drug abuse, and 
the teachers colleges instruct future teachers about alcohol, 
tobacco and narcotics.

Law Enforcement Efforts.  GOS authorities reported narcotics 
crimes were up 16% in 1991 over 1990.  In 1991,  Sweden reported 
that 4,692 persons were sentenced for drug crimes.  A law 
criminalizing use (possession had already been a crime) of illegal 
narcotics was passed in 1988, making it a misdemeanor to use 
narcotics.  Enforcement officials believe, however, that it has 
had minimal deterrent effect.  The Swedish police are not 
permitted to take urine samples and only issue fines similar to 
parking tickets.  A Justice Ministry proposal, which will allow 
urine samples to be taken as evidence of drug use, is to be 
enacted in early 1993.  In addition, law enforcement authorities 
have been urging relaxation of strictures against wire taps and 
"sting" operations to combat increasingly sophisticated 
trafficking.

Customs and Police report that 327 kg of cannabis were seized 
during the January-October period and more than 654 kg in all of 
1991.  Heroin and cocaine seizures have likewise increased.  Due 
to concern about the increase in smuggling of drugs from Poland 
and through the Baltic nations and Russia, Swedish police have a 
cooperative informal relationship with authorities in those 
countries to stem the flow of drugs.

Agreements and Treaties. Sweden ratified the 1988 UN Convention on 
July 22, 1991.  By the actions described above, Sweden is 
generally meeting the goals and objectives of the convention.  
Sweden is a party to the 1961 Single Convention and its 1972 
Protocol, and the 1971 Convention on Psychotropic Substances.

The GOS has bilateral customs agreements with Germany, the UK, the 
Netherlands, France, the U.S., Finland, Denmark, Norway, Iceland, 
Spain, and, most recently, Poland.  

IV. U.S. Policy Initiatives and Programs

The USG has no antidrug programs in Sweden, nor does it provide 
Sweden with such assistance.  Swedish law enforcement officials 
cooperate with USG law enforcement agencies by sharing information 
on illicit drug shipments and bilateral meetings between high-
level GOS and USG law enforcement officials, such as a meeting 
between the U.S. Attorney General and the Swedish Ministers of 
Justice and Public Administration last summer.  The USG will 
continue to work towards increased Swedish flexibility in 
extraditing drug traffickers to the U.S. under the 1984 
extradition treaty.

The Road Ahead. The USG expects continued GOS support for UNDCP 
and other antidrug international organizations.  The USG 
encourages Sweden, along with its West European neighbors, to 
support Poland, Russia and the Baltic nations in their narcotics 
control efforts.
(###)

SWITZERLAND

I. Summary

Switzerland has a significant narcotics consumption problem in 
some of the major cities.  The supply of narcotics is abundant, 
with distribution largely controlled by non-Swiss.  Drug-related 
deaths are growing.  Within Switzerland's federal structure, 
cantonal governments have autonomy on various aspects of narcotics 
policy, with  French-speaking cantons taking a tougher line 
against abuse than do officials in German-speaking cantons.  
International narcotics traffickers sometimes use Switzerland as a 
transit point.  A major international financial center, 
Switzerland has been used by traffickers for money laundering, but 
the government has taken significant legal and enforcement actions 
which should make Switzerland a much less attractive money 
laundering site.  Switzerland signed, but has not ratified, the 
1988 UN Convention.

II. Status of Country

Switzerland has been used by traffickers for money laundering and 
occasionally for drug transit.  The Federal Government of 
Switzerland (FGS) has implemented the Financial Action Task Force 
(FATF) recommendations involving a number of significant legal and 
enforcement actions which should make Switzerland a much less 
attractive money laundering site.  It has amended its penal code 
to make money laundering a crime, and virtually eliminated the 
historic numbered Swiss bank account, while establishing a code of 
conduct for banks to cooperate with authorities.  Switzerland also 
signed the Council of Europe's convention on money laundering and 
confiscation of criminal wealth.

Switzerland is a major producer of precursor and essential 
chemicals but diversion is not considered a problem.  It has had a 
domestic chemical control system in place since 1991.  Switzerland 
is a member of the Chemical Action Task Force (CATF); the Swiss 
Federal Council decided in March to accept the CATF 
recommendations on control of chemicals and will bring their 
legislation into conformity with the 1988 UN Convention.

Narcotics consumption is a problem in some major cities.  Drug-
related deaths continue to rise. 

II. Country Actions Against Drugs in 1992 

The FGS condemns the abuse of narcotics and seeks to reduce 
consumption through prevention, law enforcement, and social 
assistance.  Under the Swiss federal system, the regional cantonal 
and city governments have considerable autonomy in law enforcement 
and drug policy matters.  In practice, this results in varying 
degrees of tolerance for drug abuse and enforcement practices.  
While the French-speaking cantons in western Switzerland have 
adopted a tough anti-narcotics policy, the German-speaking cantons 
of Bern, Basel and Zurich have experimented with new policies, 
including a more "open" drug environment.

Drug Flow/Transit.  As Switzerland is a major connecting point for 
flights from the Far East, Middle East and Africa, drug 
trafficking from those regions continues.  South American cocaine 
traffickers smuggle cocaine to Switzerland through Zurich and 
Geneva airports.  Heroin transits the country overland on its way 
to other points in Western Europe.  By a variety of Customs checks 
and border controls, the Swiss authorities seized over 168 kg of 
cocaine and over 58 kg of heroin in 1992.  There is no reported 
corruption among FGS officials.

Agreements and Treaties.  Switzerland's ratification of the 1988 
UN Convention has been delayed by opposition of many Swiss to the 
convention's measures against possession and purchase of minimal 
amounts of narcotics.  The Swiss Government hopes to achieve 
ratification by Parliament in 1993.  Switzerland will be able to 
fully meet the goals and objectives of the convention once it 
brings its laws on possession and purchase of narcotics and 
chemical control into conformity with the Convention.

Switzerland is a party to the 1961 Single Convention.  The USG and 
the GOS have a mutual legal assistance treaty (MLAT) dating from 
1977 and an extradition treaty from 1901.

Demand Reduction Programs.  Concerned about an AIDS infection rate 
that is the highest per capita in Europe, public health officials 
in Zurich and Bern authorized distribution of needles to addicts.  
This more open and tolerant policy toward addicts led to 
complaints from the populace. City officials subsequently closed 
the "needle parks" in Zurich and Bern, but this has dispersed the 
problem.  It also produced some spill-over of narcotics activity 
into other cantons.  This necessitated a massive deployment of the 
police.  For a short time, the police succeeded in arresting 
dealers and disrupting the market.  But the market quickly 
recovered, supplying enough narcotics so that the number of drug 
deaths exceeded that of 1991.  Zurich city officials would prefer 
a more liberal national drug policy.  The federal government is 
divided over how to respond.

The Federal Council (Switzerland's seven-member executive body) 
issued a decree on narcotics in October effective through 1996.  
It is geared toward prevention of drug abuse, seeks to improve the 
living conditions of narcotics addicts and emphasizes therapeutic 
measures to address narcotics abuse.  The most controversial 
portion of the decree includes a limited test program to 
distribute heroin to addicts in several major Swiss-German cities.  
The program has an experimental rather than a treatment focus and 
includes only about 250 persons.  Members of Parliament have 
publicly criticized the distribution program.  Opponents are 
trying to ban it in a national electoral initiative. 

IV. U.S. Policy Initiatives and Programs

Swiss authorities cooperate with U.S. enforcement agencies in 
accordance with the MLAT by sharing narcotics trafficking-related 
information, mainly bank records, and by freezing bank accounts 
containing drug proceeds.  Swiss authorities regularly act on such 
information.  Since July, the U.S. has shared approximately $3.5 
million of seized and forfeited assets with  the Swiss government.  
Swiss laws do not permit sharing of forfeited assets with other 
countries, but Swiss authorities are seeking means to share 
forfeited assets.  

The Road Ahead.  The USG looks toward continued cooperation from 
the Swiss on efforts to counter narcotics trafficking.  However, 
the USG considers it essential that the Swiss government ratify 
and implement the 1988 UN Convention
(###)

TURKEY

I.  Summary

A land bridge for Southwest Asian heroin destined for Western 
Europe and the U.S., Turkey has become an important narcotics 
trafficking route.  Almost three-quarters of all drug seizures and 
arrests in Europe involve Turkish (mostly ethnic Kurd) traffickers 
and drugs coming through Turkey.  Heroin laboratories also have 
begun to appear in isolated areas of the country.  The Government 
of Turkey (GOT) is working to diminish drug trafficking and 
processing.  During 1992, investigations coordinated by the DEA in 
Ankara and Istanbul helped to disrupt the flow of heroin across 
Turkey and of essential and precursor chemicals into the country.  
As a result, authorities made record seizures in December 1992 and 
January 1993 of 7.5 mt of morphine base.  The GOT has achieved 
nearly  complete success in controlling licit opium poppy 
cultivation; virtually none leaks into illicit channels.  Turkey 
was one of the first countries to sign the 1988 UN Convention, but 
still has not ratified it.

II. Status of Country 

Turkey is a production and trafficking site for heroin and hashish 
from Asia to Europe and the U.S.  Thousands of trucks cross Turkey 
each year, a ready means of transport for drugs.  However, 
traffickers increasingly are using air and sea routes from 
Southwest Asia, particularly Pakistan, because of the  conflict in 
the former Yugoslavia and the disruption of traditional overland 
routes through the Balkans.  Seizures in recent years confirm that 
traffickers now process multi-ton quantities of heroin in Turkey.  
Laboratories to convert imported morphine base into heroin have 
surfaced in remote regions of southeastern Turkey, as well as in 
the Marmara region near Istanbul.  Turkish authorities seized one 
such laboratory in 1992.  Major Turkish, Iranian and other 
international trafficking organizations operate from Istanbul, 
where they maintain connections with Pakistan, Iran and eastern 
Turkey, as well as Europe, the U.S. and Canada. 

Turkey is one of the traditional opium poppy growing countries, 
recognized by the USG for legal poppy cultivation.  Turkey uses 
the concentrate of poppy straw (CPS) method to produce licit 
opiates for the manufacture of pharmaceuticals.  Turkish 
government measures to control cultivation and production of 
opiates appear effective, including high government prices paid to 
farmers for licit opium poppy straw, heavy penalties for using the 
incision method of collecting opium gum, and government monitoring 
of growing areas.  The Bolvadin Alkaloid Plant, the government's 
CPS facility, is the largest of its kind, with an annual capacity 
to process 20,000 mt of straw.  Turkey produced 5,200 mt of straw 
in 1992, for a total of 13.3 mt of CPS, but exported only 2 mt of 
CPS to the U.S. 

Turkey has no laws against money laundering.  Given the scope of 
trafficking, it is highly likely that narcotics profits return to 
Turkey where they are invested in legitimate businesses, but it is 
impossible to estimate their magnitude.  Turkish nationals may 
freely purchase foreign exchange and hold foreign exchange 
denominated accounts; these transactions are reported only in the 
aggregate to the Central Bank. 

III. Country Action Against Drugs in 1992 

Policy Initiatives.  Turkey was one of the first countries to sign 
the 1988 UN Convention.  However, it still has not ratified it, 
and there were few signs in 1992 that the government would submit 
the Convention to the national assembly for ratification in 1993. 

Accomplishments.  In three record seizures, Turkish authorities 
confiscated over 7.5 mt of morphine base.  On December 16, the 
Turkish Navy intercepted the Turkish flag vessel "Kismetin I" with 
a reported 3.4 mt of morphine base on board.  Two weeks later, 
Turkish border authorities seized over 1.4 mt of morphine base on 
two container trucks entering Turkey from Georgia; the narcotics 
reportedly originated in Afghanistan.  In January 1993, the 
Turkish Navy seized the "Lucky S" carrying 2.7 mt of morphine base 
and 11 mt of hashish bound for Istanbul.  These narcotics 
originated in Pakistan.  During the first 10 months of 1992, the 
Police and Jandarma seized over one mt of heroin/morphine base and 
one heroin processing laboratory.  

Turkey needs laws permitting the controlled delivery of illicit 
drugs; this would greatly increase its narcotics interdiction 
capability by allowing drug evidence (and thus investigations) to 
travel to another country and lead authorities to other members of 
international trafficking organizations.  Laws against money 
laundering, asset seizure, and conspiracy are also required.  
Passage of such laws is called for under the 1988 UN Convention. 

Law Enforcement Efforts.  Turkish enforcement agencies cooperate 
closely with the U.S. and other countries.  The principal agencies 
involved in law enforcement are the Turkish Police and the 
Jandarma.  The Turkish Customs turns narcotics cases over to the 
Police.  The Turkish Coast Guard is beginning to play a larger 
role in interdiction.  The Ministry of Interior coordinates all 
smuggling interdiction.  A major problem in Turkish interdiction 
efforts is a lack of manpower.  Currently, there are only 126 
narcotics officers in Istanbul, a major drug transit center with a 
population of over 10 million.  There have been no major changes 
in narcotics law enforcement measures since 1988, but there is 
mounting pressure from countries affected by the narcotics traffic 
to make the changes needed to comply with the 1988 UN Convention.  
Very little of the heroin passing through Turkey is detected and 
seized. 

Corruption.  Although Turkish laws carry heavy penalties for 
corruption, especially related to narcotics, there are allegations 
of corruption at many levels of the criminal justice system.  
Senior law enforcement and most other government officials fully 
cooperate on narcotics interdiction efforts, but drug 
investigations have been compromised at the investigative level.  
Corruption also is a problem once apprehended traffickers enter 
the judicial system.  The USG is unaware of reports of any senior 
Turkish officials engaged in illicit drugs or money laundering. 

Agreements and Treaties.  Turkey has signed several bilateral 
agreements on narcotics control.  Denmark, Spain, Italy, the UK, 
Austria and Germany, as well as the U.S., have resident narcotics 
liaison officers in Turkey.   The USG and the GOT signed an 
extradition agreement in 1979 which went into effect in 1981.  The 
first extradition request by the U.S. under the agreement occurred 
in 1992; it is anticipated that the fugitive will be extradited in 
March 1993.  The U.S. and Turkey also have a bilateral mutual 
assistance agreement and a narcotics assistance protocol.  Turkey 
is party to the 1961 UN Single Convention on Narcotic Drugs, but 
not to its 1972 Protocol; it is a party to the 1971 Convention on 
Psychotropic Substances.  

Demand Reduction Programs.  Drug addiction is not presently a 
significant problem in Turkey, although some educators, police 
officials and medical personnel are concerned that it could become 
one.  Most Turks believe that only a few of the young, wealthier 
Turks in large cities use cocaine; hashish is more widely 
consumed.  Heroin addiction appears to be confined to Iranian 
immigrants.  The GOT emphasizes education in preventing drug 
abuse, especially among the young.  Many primary and secondary 
school officials invite narcotics officers to lecture on the 
hazards of drug abuse.  The Ministry of Health limits the sale of 
controlled drugs through a special prescription system. 

IV  U.S. Policy Initiatives and Programs 

Policy Initiatives.  USG efforts help to strengthen investigation 
and interdiction institutions in Turkey, especially in the 
southeastern region as well as along the east-west highways of the 
country.   The U.S. continues to urge ratification of the 1988 UN 
Convention.

Bilateral Cooperation.  U.S.-Turkish cooperation against narcotics 
trafficking is close, as evidenced in the vessel seizures in 
December 1992 and January 1993.  USG funds are used to improve the 
mobility of the Turkish Police, enhance their detection of illegal 
operations, and facilitate the transmission of intelligence on 
potential smuggling operations.  The USG also trains Turkish 
Police and Jandarma officials.  Some USG assistance is provided to 
the Turkish Alkaloids Board to help prevent the diversion of opium 
poppies. 

The Road Ahead.  Despite the Turkish government's commitment to 
reducing narcotics trafficking, 70 percent of all drug seizures 
and arrests in Europe still involve Turkish traffickers and 
narcotics coming through Turkey.  It is imperative that Turkey 
move quickly to ratify the 1988 UN Convention and implement its 
provisions.  This will greatly strengthen interdiction efforts and 
international cooperation. 

[Chart - Turkey 1993 Statistical Tables]
(###)

UKRAINE

I.  Summary

Ukraine is playing an increasingly important role in the drug 
trade both as a transit country and as a producer of illicit opium 
poppy straw.  Recent political changes and newly opened borders 
have given rise to increased trafficking operations from Central 
Asia and the Transcaucas through Ukraine.  Most smuggling 
operations involve the shipment of heroin, hashish, and opium from 
Afghanistan and Pakistan by rail.  Health authorities believe that 
this smuggling is fueling an already extensive domestic drug 
market. 

There is limited recognition of the escalating drug threat by the 
Government of Ukraine (GOU).  As a successor state to the USSR, 
Ukraine is a party to the major international drug conventions, 
including the 1988 UN Convention.  Efforts are underway to change 
domestic legislation to promote implementation of the 1988 UN 
Convention.  Nevertheless, economic and other issues dominated the 
GOU's domestic agenda during 1992, diverting high-level attention 
from the expanding drug problems.  The GOU's antidrug efforts have 
been further limited by manpower and resource shortages.  There 
has been little progress towards establishing a comprehensive 
antidrug strategy.  Since possession of small quantities of drugs 
is legal in Ukraine, the GOU will need to change this law and take 
additional counternarcotics actions in order to meet fully the 
goals and objectives of the 1988 UN Convention.  

II.  Status of Country 

Ukraine's location and traditional role as an opium poppy producer 
make it increasingly vulnerable to expanded drug operations.  
Ukraine was once a source of licit poppy straw for the USSR.  
While most poppy cultivation was outlawed in 1987, authorities 
note that the extensive use of poppy for cooking makes it 
difficult to enforce the prohibition, despite the fact that 
poppies are also cultivated for the production of illicit poppy 
straw extract.

Authorities believe that small organized gangs control most of the 
domestic drug activities in Ukraine.  One Ukranian official 
estimated there are about 500 such gangs producing and 
distributing opium poppy straw in the eastern cities of Kharkiv, 
Dnepropetrovsk, and Donetsk.  Most of these gangs are Ukrainian or 
from Central Asia and the Transcaucasus states.

Drug smugglers are also using Ukraine as a conduit for drugs from 
Central Asia and Afghanistan destined for Western Europe.  
Although information on the extent of such smuggling is limited, 
shipments transiting Ukraine have been seized in Romania, Hungary, 
and the Netherlands.

Widespread opium poppy cultivation in Ukraine has led to expanded 
drug addiction, particularly of injectible opium poppy straw 
extract.  Authorities report over 20,000 registered drug addicts, 
but believe that the actual number is closer to 150,000. 

Some officials suspect that drug money laundering occurs, but do 
not have any statistics on the extent of this activity.  Ukraine 
does not yet have any laws against money laundering.  

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  The recently formed Ukrainian government has 
been preoccupied with political and economic reform and has not 
yet formulated any long-range antidrug plans.  Nevertheless, the 
GOU has indicated that it views the expanding drug problems as a 
threat and is taking limited action, including becoming a party to 
all the UN drug conventions and proposing new antidrug 
legislation, now before Parliament.  Moreover, the Health Ministry 
has already enacted a program to monitor and control the 
production and export of pharmaceuticals. 

Law Enforcement Efforts.  The Ministry of Interior, which shares 
the lead for antidrug efforts with the Ministry of Health, 
recently indicated the need for stepped-up law enforcement 
measures.  Efforts by the police are limited by resource and 
manpower shortages and the old legal code which allows the 
possession of small quantities of drugs for personal use.  Customs 
has also taken on a new antidrug role and is establishing a 
special narcotics and contraband division. 

Corruption.  The USG does not have any reports of official 
narcotics-related corruption in Ukraine.

Agreements and Treaties.  Ukraine is a party to the 1988 UN 
Convention, the 1961 Single Convention on Narcotic Drugs and the 
1972 Protocol thereto, and the 1971 UN Convention on Psychotropic 
Substances.  The GOU is modifying its antidrug laws to implement 
the 1988 UN Convention.  However, effective implementation will 
require, inter alia, stricter controls on narcotics trafficking 
and production, more effective law enforcement, and imposition of 
criminal penalties for narcotics possession.  

Cultivation and Production.  The GOU continues to outlaw poppy 
cultivation, except for officially registered hemp and poppy crops 
which are limited to 9,000 ha in 176 farms and strictly monitored 
with police units stationed in fields while they are being 
harvested.  However, evidence that illicit cultivation exists 
includes the discovery of an illegal poppy plantation near Odessa 
in 1992 and the seizure if 39 mt of illicit poppy over the past 
five years.  Koknar, a homemade mixture of boiled poppy straw that 
some experts believe causes the same effects as heroin when 
injected, is produced throughout Ukraine.     Demand Reduction 
Programs.  In response to widespread poppy straw addiction, 
Ukraine established a demand reduction campaign in 1990 that 
includes participation by nine different ministries.  Although the 
program suffers from limited resources, the GOU has continued the 
education and treatment program. 

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  In 1992, the USG opened a counternarcotics 
dialogue with Ukraine to urge increased attention to the drug 
issue.  Initial efforts have focused on identifying existing 
problems, possible areas for assistance,  and the need to 
implement the UN drug conventions.  Moreover, the USG is 
encouraging antidrug assistance from those nations, primarily in 
Western Europe, most directly affected by heroin smuggling through 
Ukraine.  

Against this backdrop, the USG has provided assistance for 
Ukrainian law enforcement and Customs officials to participate in 
a regional advanced drug enforcement school and a seminar on 
precursor and essential chemical controls held in Warsaw last May. 

The Road Ahead.  The USG will continue to encourage the GOU to 
expand its drug control activities and to establish the necessary 
legislative and institutional capabilities.  During 1993, the USG 
will urge Ukraine to implement the 1988 UN Convention.  A 
compliance manual for the 1988 UN Convention prepared by the 
Department of Justice is being translated into Russian and will be 
forwarded to the GOU for this purpose.  In addition, INM plans to 
offer demand reduction training for Ukrainian health experts.  
(###)

UNITED KINGDOM

I.  Summary

The UK actively participates in international drug control efforts 
and has bilateral narcotics control agreements with the USG and a 
number of other governments.  Her Majesty's Government (HMG) 
chaired several multilateral organizations and participated in a 
number of important drug control initiatives in 1992.  Law 
enforcement officials believe South American cocaine traffickers 
are attempting to expand their market in the UK, as indicated by a 
significant increase in cocaine seizures in recent years, 
especially of crack cocaine.  UK strategy is to reduce the supply 
of drugs through improved international cooperation, enhance 
border customs control and domestic police enforcement, raise the 
quality of drug abuse education, and promote more effective 
rehabilitation and treatment programs.  By the time the government 
ratified the 1988 UN Convention in 1991, it had met most of the 
goals and objectives of the convention. 

II. Status of Country

The UK is an increasingly attractive target for cocaine 
traffickers because of the higher market prices for cocaine than 
in the U.S., and because of the expected easing of border controls 
among the EC states beginning in 1993.  UK authorities estimate 
there are between 50-100,000 heroin addicts, with the number 
remaining relatively stable.  Recently, drug officials have become 
concerned about the increased use of synthetic drugs, particularly 
"ecstasy," most of which comes from Britain's European neighbors.  
The government's domestic policy is focused primarily on drug 
prevention and treatment.

The UK is a producer and exporter of precursor and essential 
chemicals, but the authorities closely monitor their domestic 
trade. 

Officials believe UK banks and other financial institutions are 
vulnerable to money laundering; drug proceeds both from domestic 
sales and the transit of narcotics are converted in the UK.  Law 
enforcement authorities participated in Operation "Green Ice," a 
DEA international money laundering operation.  The Channel Islands 
and the Isle of Man have offshore banking facilities that are also 
believed to attract drug funds; accordingly, they have adopted 
money laundering countermeasures.

III.  Country Actions Against Drugs in 1992 

Policy Initiatives.  HMG assumed a leadership role by chairing the 
Dublin Group.  As President of the Council of Europe, it also 
chaired the European Committee to Combat Drugs (CELAD).  The UK 
provided the leadership for the working group on Europol, an EC-
designed project to collect, analyze and disseminate intelligence 
on drug trafficking, money laundering and other organized crime. 

The UK was the first government to ratify the Council of Europe's 
Convention on Money Laundering.  It participates actively in the 
Financial Action Task Force (FATF).

Accomplishments.  Customs and Excise authorities conducted 
training seminars for customs inspectors in 27 countries.  The 
National Criminal Intelligence Service (NCIS) assisted in the 
design and development of a national drug intelligence unit in 
Czechoslovakia.

Law Enforcement Efforts.  UK authorities seized a one-mt shipment 
of cocaine from Colombia worth an estimated $250 million, a record 
seizure for the UK.  HMG Customs and Excise statistics showed that 
officials seized 449 kg of heroin, 2,2 mt of cocaine and 44.5 mt 
of cannabis products in 1992.

HMG continues to address the problem of international 
transportation of illegal-source currency and monetary 
instruments.  There were 24 prosecutions for money laundering in 
1992 and 42 prosecutions currently are in the judicial system.  In 
addition, HMG authorities are aggressive in enforcing existing 
drug-related asset seizure and forfeiture laws.  Approximately $12 
million of assets were forfeited and/or seized in 1992.

Law enforcement authorities have eliminated many illicit drug 
producing laboratories, particularly those producing amphetamines.  
The government has implemented the measures required under the 
1988 UN Convention on the diversion of precursor and essential 
chemicals.  HMG is active in the Chemical Action Task Force (CATF) 
and the Council of Europe's Pompidou Group to develop strategies 
to control the trade in precursor and essential chemicals.

Corruption.  Public service corruption is not considered to be a 
problem in the UK.

Agreements and Treaties.  HMG ratified the 1988 UN Convention in 
1991, but  it had already criminalized most drug-related 
activities, established severe penalties, and provided for 
bilateral cooperation in the extradition of accused offenders.  
The Ministry of Defense issued to its naval forces the rules of 
engagement for the interdiction of drug traffic on the high seas 
under Article 17 of the 1988 UN Convention.  In 1992, HMG and the 
USG extended a 1988 agreement related to the investigation of drug 
trafficking offenses and the seizure and forfeiture of drug 
trafficking proceeds to cover Gibraltar and the Isle of Man.  The 
USG and HMG are negotiating a mutual legal assistance treaty 
(MLAT) providing for the sharing of evidence in drug-related 
cases.

Drug Flow/Transit.  Cocaine shipments usually arrive directly from 
Central and South America.  Shipments of heroin and marijuana 
typically originate in Pakistan and Afghanistan and arrive either 
via the Balkans or across the Mediterranean from North Africa to 
Spain.  UK drug seizure figures indicate the flow of heroin, 
marijuana, and cocaine have increased significantly.

Demand Reduction Programs.  The UK's program seeks to curb the 
incidence of drug abuse, particularly among the young.  Teams in 
high-risk urban areas work closely with the community to 
disseminate information on the harmful effects of drugs and to 
organize training seminars and social activities.  As EC President 
from July-December, HMG focused the EC's attention on the drug 
problem by declaring November 16-20  European Drug Prevention Week 
and by sponsoring a media seminar.

IV. USG Policy Initiatives and Programs

The USG collaborates closely with HMG on a bilateral basis and in 
a number of multilateral organizations such as the Dublin Group.  
Since 1989, the USG and HMG have conducted periodic bilateral 
antidrug consultations leading to closer coordination of drug 
control programs and policies.  HMG is a major donor and actively 
participates in the activities of the UNDCP.  

Since 1989, the USG has transferred over $5 million in seized and 
forfeited assets to the HMG as a result of assistance provided by 
UK law enforcement authorities to the U.S. in successfully 
prosecuting drug-related cases. The two governments reached an 
asset-sharing arrangement and the USG recently made its first 
request, in the Rodriguez Gacha case.  More than $1 million in 
drug proceeds has been forfeited in the UK, based on a forfeiture 
order entered in Florida.  The USG asked that a portion of these 
funds be shared with the U.S. and with Colombia. 

The Road Ahead.  The USG will continue to look to the UK, in 
cooperation with other EC countries, to assume the lead in 
assisting Eastern Europe and the Newly Independent States of the 
former Soviet Union in their antidrug efforts.  The UK will chair 
the Dublin Group's Sub-group on Southwest Asia, the region which 
is the principal source of heroin consumed in the EC countries.  
(###)

YUGOSLAVIA

II. Status of Country

The political, economic and social turmoil, and the outright 
warfare which have occurred within the borders of the former 
Yugoslavia, have dismembered or preoccupied the official 
organizations which previously had responsibility for narcotics 
interdiction efforts and analysis.  These organizations have 
splintered along republic and even ethnic intra-republic lines in 
the case of Bosnia-Hercegovina.  Cooperation among the former 
Yugoslav republics has deteriorated significantly, ceasing 
entirely in some cases, thereby further reducing drug interdiction 
capabilities in the Balkan area.

The same turmoil has led to a reduction of drug trafficking 
through Yugoslavia.  Yugoslavia was once a key transit country for 
traffickers smuggling heroin from Southwest Asia to Western 
Europe.  Most traffickers who once moved heroin in bonded (TIR) 
trucks are now diverting their operations through other parts of 
Eastern Europe.  There are some unconfirmed reports, however, that 
paramilitary, separatist, and possibly even government groups have 
been involved in drug smuggling to finance the purchase of weapons 
and other military equipment. There are no longer any accurate 
statistics on the volume of narcotics passing through the former 
Yugoslavia.

Yugoslavia was a party to the 1988 UN Convention, the 1961 Single 
Convention on Narcotic Drugs, its 1972 Protocol, and the 1971 UN 
Convention on Psychotropic Substances.  Slovenia became a party by 
depositing its instruments of accession for all three conventions 
with the UN.  None of the other republics of the former Yugoslavia 
have taken steps to do so.  There are no indications that any of 
these states have adopted new antidrug legislation.  
(###)

CENTRAL ASIAN STATES 

I. Summary

The collapse of the Soviet Union and the opening of borders has 
heightened the drug threat in the Central Asia states of 
Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.  
For years, opium poppy was cultivated in Kyrgyzstan and Tajikistan 
for licit pharmaceuticals, but also grown illicitly in all five 
republics.  In 1973, Moscow banned all poppy growing because of 
the high cost of protecting the licit fields against addicts and 
drug dealers.  Although all five states have continued these bans, 
there are reports of illicit opium poppy cultivation.

While the extent of such cultivation is unknown, authorities 
believe that most is for domestic consumption or markets in Russia 
and the European Newly Independent States (NIS).  All the Central 
Asian states, but particularly Turkmenistan, Tajikistan, and 
Uzbekistan, have reported that opium use is increasing.  There is 
also widespread use of cannabis products and injectible opium 
poppy extract.  

Little is known about the drug trafficking organizations that 
operate in Central Asia.  There is information that local criminal 
groups control distribution in the key cities.  In addition, there 
are some reports of criminal elements from the Transcaucas region 
establishing drug connections in Central Asia.

Open borders, commercial ties and growing transportation links to 
the West and elsewhere are expanding opportunities for 
international drug operations.  Central Asian governments plan to 
connect their railroads with those of neighboring states, 
including Iran, China and Turkey; Pakistan has proposed connecting 
its deep water port at Karachi with rail links to the Central 
Asian States; and Pakistan and Uzbekistan are making arrangements 
for a Pakistani airline to make direct flights from Tashkent to 
Karachi and Frankfurt.

These links could accelerate drug trafficking in the region.  
Moscow continues to express concern that heroin and hashish from 
Afghanistan are being smuggled through the Central Asian States.  
This trafficking is likely to expand with any rise in opium poppy 
cultivation in Afghanistan.  Tajik officials also note that Afghan 
opium is often traded for arms and supplies on the Afghan border.  
Uzbekistan authorities seized over 30 mt of hashish from December 
1992 to February 1993. 

There is some recognition by the Central Asian States that the 
drug trade presents a challenge to the region.  However, all five 
governments are severely hampered by a lack of resources, 
particularly in law enforcement and border control.  Kyrgyzstan's 
nascent efforts to form a domestic antidrug plan appear to be the 
most advanced.  However, most governments' efforts have focused on 
continuing the limited interdiction and manual eradication 
activities begun under the USSR.  Turkmenistan's demand reduction 
program is the most advanced in the region because of its rising 
opium problem.

The USSR was a party to the 1988 UN Convention, the 1961 Single 
Convention on Narcotic Drugs and its 1972 Protocol, and the 1971 
Convention on Psychotropic Substances.  Prior to the dissolution 
of the USSR, the new  republics agreed at Alma Ata that they would 
continue to observe the treaties to which the USSR was a party.  
Based on these undertakings and the relevant principles of 
international law, the USG has reached the conclusion that these 
states, as successor states to the USSR, continue to be bound by 
these instruments.  Nonetheless, the USG has urged each of these 
states to take the necessary actions to accede to the conventions, 
so that the depository will include them on its list of parties.  

The USG has limited information on which to base an assessment of 
whether each of the Central Asian States is meeting the goals and 
objectives of the 1988 UN Convention.  Each has taken limited 
measures against drug trafficking and, while these actions are 
consistent with the Convention's goals, they will need to take 
additional steps to meet these goals fully.  All five governments 
have reported efforts to draft updated penal codes that will take 
the UN conventions into consideration.  Meanwhile, the USSR's 1961 
penal code remains in place.

KAZAKHSTAN

II.  Status of Country

Kazakhstan plays a key role in the Central Asian drug trade 
because of its location, its fields of wild cannabis, and the 
traditional production of licit opiates.  One-third of all illicit 
drug seizures in the USSR took place in Kazakhstan, reflecting its 
role as a center for drug smuggling.  The lack of effective 
customs controls, and the increasing transportation links 
throughout the area, will likely bolster trafficking.  There also 
have been unconfirmed reports of opiate smuggling from Kazakhstan 
to Russia, but  it is unclear whether these opiates are produced 
from local opium poppy or imported from Afghanistan.  There is 
little information on local drug smugglers or their operations, 
although there are some reports of Kazakhstani involvement in drug 
smuggling in Eastern Europe. 

Although drug abuse is not considered a serious threat, health 
officials believe it is much higher than reflected in the number 
of registered addicts, 10,697 in 1991.  This number primarily 
reflects marijuana users in regions where cultivation is high.  In 
Chimkent, a recent survey indicates one out of every 14 citizens 
uses cannabis products.  Health officials report that the use of 
opium poppy straw and ephedrine may also be on the rise.  

II.  Country Actions Against Drugs in 1992

Policy Initiatives. The Government of Kazakhstan's (GOK) nascent 
drug control efforts largely have continued activities begun under 
the USSR and have focused on illicit trafficking and cultivation.  
These efforts, which are based in the Ministry of Interior (MVD) 
and the Prosecutor General's office, have received little high-
level attention, and the GOK has yet to develop a coordinated 
antidrug strategy.  However, the Prosecutor General's office is 
now drafting a new penal law and a program to expand some 
counternarcotics activities.  

MVD efforts in 1992 concentrated on "Operation Mak" during which 
police destroyed opium poppy and cannabis and seized 10 mt of 
opium.  Efforts by the MVD's 400 police officers, 100 detector 
dogs, and a special drugs investigative unit of 12 officers remain 
constrained by a lack of resources and training.     Cultivation 
and Production.  Cultivation of opium poppy and cannabis is 
illegal in Kazakhstan.  However, there are reports of illicit 
poppy fields in southern Kazakhstan, although the extent is 
unknown.  Kazakhstani authorities also estimate that the country 
has over 138,000 ha of wild cannabis, with an unusually high THC 
content.  The UN reports, however, that massive eradication of 
this cannabis could have severe ecological effects. 

A shortage of hard currency to purchase Indian opium led 
Kazakhstan, the only supplier of licit opiates for the former 
Soviet Union, to halt all opiate manufacturing in 1991.  Between 
1973 and 1992, the pharmaceutical plant in Chimkent processed 150 
mt of Indian opium annually to produce morphine, codeine, thebaine 
and ethyl morphine.  Previously it had obtained its opium from 
Tashkent and Kyrgyzstan.  

Corruption.  The USG does not have any specific reports of 
official narcotics-related corruption in Kazakhstan.

Agreements and Treaties.  The GOK is drafting a new penal code 
which is expected to take into account international drug 
conventions.  In the interim, it still relies on the USSR's Penal 
Code of 1961.  Effective implementation of the 1988 UN Convention 
will require, inter alia, stricter controls on trafficking and 
production, more effective law enforcement, and imposition of 
criminal penalties for narcotics possession.

Demand Reduction Programs.  The Ministry of Health has limited 
antidrug programs which include a treatment and prevention program 
that targets youth. 
(###)

 KYRGYZSTAN

II.  Status of Country  

The illicit drug industry has already begun to gain a foothold in 
Kyrgyzstan.  Opium poppy cultivation and trafficking are 
accelerating throughout the country.  Several Kyrgyz officials 
have indicated that the drug cultivation and trafficking is 
destined primarily for markets within the former Soviet Union.

Kyrgyzstan once supplied more than 16 percent of the world's raw 
licit opium for consumption within the Soviet Union.  Opium 
cultivation was banned in 1973.  Kyrgyz officials maintain there 
is now little or no domestic opium poppy cultivation and that all 
opiates seized in Kyrgyzstan during the past year were imported 
from neighboring states, particularly Tajikistan.  Unconfirmed 
reports suggest, however, that some opium poppy continues to grow 
wild or possibly is cultivated for illicit domestic or Russian 
markets.  Cannabis and ephedra also grow wild throughout the 
country. 

There is little concrete information on drug trafficking through 
Kyrgyzstan and no reports of drugs from this region reaching the 
U.S.  Nevertheless, Kyrgyzstan's location makes it attractive to 
increased transit trade, as heroin and hashish traffickers seek 
new routes from Pakistan and Afghanistan to Russia and the West.  
Russian authorities believe Kyrgyzstan is already a conduit for 
such smuggling.

President Akayev expressed concern in February 1993 that 
Kyrgyzstan has one of the largest drug abuse problems in Central 
Asia, with 50,000 users.  The combination of greater availability 
and low prices may nurture even greater domestic drug markets in 
the future.  The Government of Kyrgyzstan (GOK) also reported a 
73-percent increase in drug-related crime in 1992.  Abuse or sale 
of cannabis products accounted for most of the arrests, but the 
sale and manufacture of other drugs, especially amphetamines and 
ephedrine, also increased.  

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  Recent government concern may set the stage 
for more active antidrug efforts over the next year.  To date, 
such activity has been minimal.  However, the GOK has begun 
drafting legislation for a long-term national drug program.

Law Enforcement Efforts.  Kyrgyzstan has not yet drafted a 
comprehensive counterdrug campaign and lacks many of the basic 
resources to institute effective, coordinated law enforcement 
efforts.  The GOK did establish a central drug law enforcement 
office with 180 officers in 1991 under the Minister of Interior.  
This new office reports that there were 1,750 drug-related arrests 
in 1992, a 73-percent rise over the previous year.  Seizures in 
1991 include 904 kg of marijuana, 23 kg of hashish, 4.94 kg of 
opium, and 16 laboratories.  The GOK also identified 29 small 
opium poppy plots.

Corruption.  The USG does not have any reports of official 
narcotics-related corruption in Kyrgyzstan.

Agreements and Treaties.  The GOK is drafting a new penal code 
which takes into account the UN drug conventions.  In the interim, 
Kyrgyzstan still relies on the USSR's Penal Code of 1961.  
Effective implementation of the 1988 UN Convention will require, 
inter alia, stricter controls on trafficking and production, more 
effective law enforcement, and imposition of criminal penalties 
for narcotics possession.  The GOK recently signed an antidrug 
agreement with all other NIS states and plans to sign a bilateral 
agreement with Germany in 1993.

Cultivation and Production.  Although once a key supplier of licit 
opium poppy for the Soviet Union, the GOK presently bans opium 
poppy cultivation.  In 1991, the newly formed GOK announced it 
would again begin licit cultivation of opium poppy in order to 
earn hard currency.  In response to international pressure, 
however, it has continued the ban.  Opium poppy continues to grow, 
but it is unclear if such growth is wild or is cultivated for 
illicit purposes; there are no reliable estimates of the extent of 
its cultivation.  There are also reports that ephedra grows wild 
in Kyrgyzstan.  A recent UN mission report indicates that ephedra 
is collected for the  legal manufacture of ephedrine at a plant in 
Chimkent in Kazakhstan.  There are also indications that cannabis 
is grown in Kyrgyzstan, possibly around Bishkek in the Chuskaya 
Valley, which stretches south of Kazakhstan and near Issy-Kul 
Lake.

Demand Reduction Programs.  Kyrgyzstan maintains a limited drug 
prevention and treatment program.  The program includes a 
treatment and prevention program.  
(###)

TURKMENISTAN

II.  Status of Country 

Traditional cultivation and use of opium poppy, and open borders 
make Turkmenistan increasingly vulnerable to the drug industry.  
Turkmenistan appears to have a sizable opium addict population.  
Traditionally, opium was smoked, brewed, or processed into a 
beverage for celebrations, medicine, or daily use by tribal 
peoples.  Local health authorities note that such traditional use 
may be declining, but that injectible poppy straw extract use may 
be on the rise among urban youth.  Some domestic processing and 
use of heroin may also occur.  Marijuana use is prevalent.

Inadequate international transportation connections make 
Turkmenistan a poor candidate for international drug trafficking.  
Opportunities for drug smuggling, however, are expanding with the 
breakup of the USSR and the opening of borders with Iran and 
Afghanistan.  There are unconfirmed reports of drugs transiting 
Turkmenistan to Russia, but no indications yet that drugs from 
Turkmenistan have arrived in the U.S.

Drug sales and distribution appear to be controlled by local 
traffickers, according to Turkmen authorities.  Health authorities 
also have noted an increase in use of opium from Iran, 
Afghanistan, Moldova, Uzbekistan, and Ukraine.  These officials 
predict increased drug use, particularly if the political 
situation in Afghanistan fuels the influx of ethnic Turkmen-
Afghans, among whom opium use is reportedly high.

III.  Country Actions Against Drugs in 1992 

Policy Initiatives.  Government of Turkmenistan (GOTX) officials 
have recently expressed concern that drug trafficking and abuse 
are on the rise, but antidrug efforts are not a high priority and 
efforts to date have been minimal.  The Ministry of Health has 
begun to formulate a program covering drug production, 
trafficking, and abuse for consideration by the cabinet next year.  
Meanwhile, the GOTX maintains the policies and laws of the USSR.  
The cultivation of opium poppy and the use, sale, and manufacture 
of narcotic drugs are illegal.

Law Enforcement Efforts.  Domestic law enforcement activities are 
limited by the lack of high-level commitment and resource 
shortages.  To the extent possible, police forces under the 
Ministry of Internal Affairs continue to uphold Soviet-era laws 
against drug possession, use, and opium poppy cultivation.  
Semiannual campaigns using helicopters to locate and destroy 
illegal poppy and cannabis fields continued in 1991-92.  There has 
been little attempt to assess the effects of such efforts, 
however.

In 1992, the GOTX participated in several international antidrug 
conferences; early in 1993, the GOTX signed an antidrug law 
enforcement protocol with Iran. 

Corruption.  The USG has no reports of government officials 
involved in drug-related activities in Turkmenistan. 

Agreements and Treaties.  Effective implementation of the 1988 UN 
Convention will require, inter alia, stricter controls on 
trafficking and production, more effective law enforcement, and 
imposition of criminal penalties for narcotics possession.

Cultivation and Production.  Cultivation of opium poppy is illegal 
in Turkmenistan.  There are some indications of illegal 
cultivation in remote mountain and desert areas and in small local 
plots, but no statistics are available.  Cannabis is also grown in 
Turkmenistan, but local users reportedly prefer stronger varieties 
from neighboring states.  Law enforcement officials indicate that 
no opium processing occurs.  Health officials note that a crude 
form of opium and an injectible form of poppy straw is produced 
locally.

Demand Reduction Programs.  A limited drug treatment program 
continues under the Ministry of Health.  The USSR established this 
program, with over 100 physicians, in response to growing opium 
addiction in the republic.  
(###)

TAJIKISTAN

II.  Status of Country 

Political upheaval, open borders, and a rise in Afghan opium 
production across its border, have left Tajikistan open to the 
drug industry.  Trafficking organizations have already exploited 
the country's location between Afghanistan and the West to move 
hashish and opium to Russia and the European NIS.  Limited 
information suggests that much of the activity is on the Afghan 
borders in the Northern Kunduz area and the mountainous region of 
Gorno-Badakhshan.  Several accounts, including from the Government 
of Tajikistan (GOT), note that weapons and opium from Afghanistan 
are exchanged for food and medicine.  There also are unconfirmed 
reports that members of the Islamic opposition may be involved in 
the trade.  Tajik authorities have noted several opium seizures in 
the Pamir region, linking Pamir tribal leaders to cultivation and 
production operations.

The GOT tends to minimize domestic drug abuse.  Nevertheless, 
opium has had traditional uses in Tajikistan and there are 
unconfirmed reports of significant abuse of cannabis products, 
opium, and heroin, particularly in Dushanbe.  No statistics on use 
are available.

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  A diversion of law enforcement and other 
resources to deal with domestic turmoil has prevented the 
development of a GOT drug strategy and has limited efforts to 
disrupt the drug trade.  The Ministry of Interior's antidrug 
police have been diverted to work with border forces against armed 
groups and arms smugglers.  Concern about drug trafficking 
activities has prompted Ministry of Interior officials to seek USG 
assistance to revamp the antiquated penal code and improve 
interdiction operations.  The GOT also has participated in a 
Russian-led effort to coordinate NIS antidrug cooperation.

Corruption.  The USG has no reports of government officials 
involved in drug-related activities in Tajikistan.

Agreements and Treaties.  Last year the GOT began efforts to draft 
a new penal code; authorities indicated their intention to take 
into account the provisions of the UN conventions.  The status of 
such efforts is unclear, but in the interim the GOT continues to 
rely on the USSR's Penal Code of 1961.  Effective implementation 
of the 1988 UN Convention will require, inter alia, stricter 
controls on trafficking and production, more effective law 
enforcement and imposition of criminal penalties for narcotics 
possession.

Cultivation and Production.  Cultivation of opium poppy is illegal 
in Tajikistan.  There are indications of illegal cultivation in 
the Panjkent area and wild cannabis growth throughout the country, 
but no statistics are available.  There are no reports of opium 
processing. 

Demand Reduction Programs.  There is no information available on 
drug rehabilitation efforts, suggesting that any government 
program is limited.
(###)

UZBEKISTAN

II.  Status of Country 

Expanded smuggling activity and opium poppy cultivation underscore 
Uzbekistan's attractiveness to the drug trade.  As evidenced by a 
record seizure of over 14 mt of Afghan hashish destined for the 
Netherlands in February 1993, and another of 13 mt in 1992, 
Uzbekistan is a conduit for drugs to Russia and the West.  
Moreover, Uzbekistan's borders with the other four Central Asian 
States and Afghanistan, and its relatively modern transportation 
system through Tashkent, make it attractive as a brokering center 
for drug operations.  Uzbek authorities indicate that Azeri, 
Georgian and other criminal groups appear to make use of Tashkent 
for their connections to Russia and the West.

Authorities are concerned about a rise in opium poppy cultivation, 
traditionally grown in Uzbekistan.  There is little information on 
the extent of such cultivation, although Uzbek authorities believe 
that most entails small individual plots for domestic consumption.  
Cannabis also grows wild in Uzbekistan.

Most information on the extent of drug use is anecdotal, but the 
Ministry of Health reports 11,000 registered drug addicts.  
Marijuana is the most widely used drug, but opium poppy straw and 
ephedrine are becoming increasingly popular.  

III.  Country Actions Against Drugs in 1992

Policy Initiatives/Law Enforcement Efforts.  The Government of 
Uzbekistan (GOU) has not made drug control a priority and has yet 
to formulate a long-term strategy.  There have been minimal 
eradication efforts through police raids on illicit opium poppy 
and cannabis fields.  Police have also begun to target increased 
drug smuggling, including Afghan hashish operations.  The GOU has 
established a Customs Service.  

Corruption.  The USG has no reports of government officials 
involved in drug-related activities in Uzbekistan.

Agreements and Treaties.  Plans are underway to draft a new penal 
code; authorities indicate their intention to take into account 
the provisions of the UN drug conventions.  In the interim, the 
GOU relies on the USSR's Penal Code of 1961.  Effective 
implementation of the 1988 UN Convention will require, inter alia, 
stricter controls on trafficking and production, more effective 
law enforcement and imposition of criminal penalties for narcotics 
possession.

Cultivation and Production.  GOU officials report extensive 
illicit opium poppy and cannabis cultivation, particularly in the 
mountainous regions.  There are no accurate statistics on the 
extent of such cultivation.

Demand Reduction Programs.  The GOU has six substance abuse 
rehabilitation clinics throughout the country, but these tend to 
focus primarily on alcohol problems.  

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives.  In 1992, the USG opened a counternarcotics 
dialogue with each of the new governments of the Central Asian 
states to urge them to give priority to the drug issue.  Initial 
efforts have focused on identifying existing problems, possible 
areas for assistance, and the need to accede formally to the UN 
conventions.  A preliminary estimate of opium poppy cultivation is 
also planned for the region.  Moreover, the USG is encouraging 
antidrug assistance from nations in Western Europe most directly 
affected by heroin smuggling through Central Asia.

The Road Ahead.  The USG will continue to encourage the region's 
governments to expand drug control activities and to establish the 
necessary legislative and institutional antidrug framework.  An 
implementation manual for the 1988 UN Convention prepared by the 
DOJ is now being translated into Russian and will be forwarded to 
the governments upon completion.

The USG also plans to contribute $400,000 in FY 1993 to the NIS 
through the UNDCP as well as some bilateral law enforcement 
training, much of which will be used for Central Asia.  Funding is 
being provided for participants from the Central Asian states to 
attend a DEA training course in Moscow.  In addition, bilateral 
regional training will be offered to Central Asian police, 
customs, and demand reduction authorities. 
(###)


TRANSCAUCASIA

ARMENIA, AZERBAIJAN, GEORGIA

I.  Summary

The Transcaucasus region--the countries of Azerbaijan, Armenia, 
and Georgia--is emerging as a transshipment point for hashish and 
opium from Central Asia and Afghanistan to Russia and possibly 
Europe.  There are few statistics on such smuggling operations, 
but Russian authorities and press reports indicate that a number 
of criminal groups from the Transcaucasia operate drug 
distribution networks in Russia and elsewhere in the Newly 
Independent States (NIS).  

The governments of Armenia, Azerbaijan, and Georgia do not appear 
overly concerned by the drug threat, and their counterdrug efforts 
have been minimal, although there are indications that Armenia is 
planning to strengthen its antidrug legislation.  Even if 
individual countries were so inclined, intense ethnic rivalries 
would prevent effective regional cooperation.  

The USSR was a party to the 1988 UN Convention, the 1961 Single 
Convention on Narcotic Drugs and its 1972 Protocol, and the 1971 
Convention on Psychotropic Substances.  Prior to its dissolution, 
each republic agreed at Alma Ata that it would continue to observe 
the treaties to which the USSR was a party.  Based on these 
undertakings and the relevant principles of international law, the 
USG has concluded that the new republics, as successor states to 
the USSR, continue to be bound by these instruments.  Nonetheless, 
the USG has urged each of these states to take necessary actions 
to accede to the conventions, so that the depository will include 
them on its list of parties.  However, to date none of the states 
has given priority to acceding to, or implementing, existing 
narcotics conventions. 
(###) 

ARMENIA

II.  Status of Country

There is little information on drug activities in Armenia, 
suggesting that Armenia's role in the drug trade may be minor.  
Armenian authorities report that there is no illicit opium poppy 
cultivation in Armenia, but there are unconfirmed press reports 
that Afghan hashish and opium poppy straw from Central Asia are 
now smuggled through Armenia.  The opening of roads to Turkey and 
Iran is likely to expand smuggling operations.  Moreover, the 
Armenian Government (GOA) acknowledges that international drug 
organizations operate in Armenia.  This is underscored by the 
seizure of 12 kg of South American cocaine last year.

The GOA believes that the proceeds from drug operations are 
laundered through local businesses.  Armenia's chemical industry, 
one of the largest in the NIS, could attract attention as a 
supplier of precursor and essential chemicals for illicit drug 
production.

Armenian authorities believe that the 5,000 registered drug 
addicts represent only a small fraction of the total drug user 
population.  Marijuana appears to be the most prevalent drug, but 
there are some reports of injectible opium from poppy straw in 
Yerevan.

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  The GOA has stated that its current antidrug 
efforts are satisfactory and that it does not have any plans to 
expand its small-scale antidrug efforts.  Antidrug investigations 
are covered by six drug officers at the Ministry of Internal 
Affairs.  The GOA's revised criminal code, with tougher penalties 
for drug trafficking, is now before the Armenian Parliament.

Corruption.  The USG has no reports of high-level Armenian 
officials involved in the drug trade.  
(###)

AZERBAIJAN 

II.  Status of Country

Narcotics trafficking and abuse in Azerbaijan increased markedly 
in the past year as its location and open borders make it an 
increasingly attractive transshipment point.  Azerbaijan has 
promoted cross-border trade and travel with Russia and Central 
Asia, and has opened its border with Iran to encourage contact 
with the 12 to 20 million Azerbaijanis resident in northern Iran.  

Information on the drug trafficking groups in Azerbaijan is 
limited but there are press reports that Azerbaijani criminal 
networks, headquartered in Baku and other key cities, control 80 
percent of the drug distribution operations in Moscow.

Local officials note that money laundering has not become 
widespread because of the limited banking system, but they believe 
that some drug profits are laundered through local enterprises.

III.  Country Actions Against Drugs in 1992

Policy Initiatives.  Before the USSR's collapse, all antidrug 
efforts were orchestrated from Moscow.  After independence, the 
GOA assigned antidrug functions to the Ministry of Interior, the 
State Customs Committee, the Ministry of National Security, the 
Office of the President, and Azerbaijan's prosecutor.  The State 
Customs Committee began counternarcotics training for 1,200 
officers and there have been several minor arrests by Customs and 
the Police.  Nevertheless, interdiction efforts continue to be 
hindered by interagency rivalries, corruption, and laws highly 
protective of suspects' rights.  

Azerbaijan has begun cooperative counternarcotics efforts and 
signed antidrug agreements with Iran, Georgia, and Russia.

Corruption.  Azeribajani officials have noted that corruption is 
widespread within the Republic and in regional law enforcement 
bodies.  The USG has no reports on such activity.

Cultivation and Production.  Opium poppy cultivation is illegal in 
Azerbaijan.  There are reports of opium poppy and cannabis 
cultivation for domestic use and export, mostly near the Iran 
border.
(###)

GEORGIA

II.  Status of Country

Georgian officials recently have expressed concern that drug 
trafficking and abuse may be escalating.  Press reports state that 
opium poppy and hashish are being brought into or through Georgia 
from Central Asia and Azerbaijan, but most information on 
smuggling operations is anecdotal.  Turkish authorities, however, 
recently seized 1.35 mt of Afghan morphine base that reportedly 
transited Georgia.  Official statistics report 4,000 registered 
drug addicts in Georgia, but health authorities believe the number 
is much higher and that use is expanding.  They cite the use of 
hashish, opium, morphine, and even heroin.  Police officials 
report that expanded drug activity is prompting a rise in 
burglaries, robberies, assaults, and even murder.

III.  Country Actions Against Drugs in 1992

Law Enforcement Efforts.  Georgia's antidrug campaign appears to 
have come to a halt with the break-up of the Soviet Union.  The 
country's program of prosecution, treatment, rehabilitation, and 
education begun by Soviet officials in the 1960s is hampered by 
limited resources and a lack of commitment amid the current 
political and national security crises.  

Corruption.  The USG has no reports of high-level Georgian 
officials involved in the drug trade.  

IV.  U.S. Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  In 1992, the USG 
opened a counternarcotics dialogue with each of the new 
governments in the region to urge them to give priority to the 
drug issue.  Initial efforts have focused on identifying existing 
problems, possible areas for assistance, and persuading the 
government to implement the UN conventions.  Moreover, the USG is 
promoting antidrug assistance by nations in Western Europe most 
directly affected by heroin smuggling through the Transcaucasus.

The Road Ahead.  The USG will continue to encourage the 
Transcaucus governments to expand their drug control activities 
and to establish the necessary legislative and institutional 
antidrug capabilities.  Specific attention will be given to urging 
the implementation of the 1961, 1973, and 1988 UN Conventions.  An 
implementation manual for the 1988 UN Convention prepared by the 
DOJ is now being translated into Russian and will be forwarded to 
the three governments upon completion.

The USG plans to provide $400,000 for counternarcotics assistance 
for the NIS through the UNDCP as well as some bilateral law 
enforcement training, including regional DEA training courses in 
Moscow and Central Asia.   


[Chart - Europe 1993 Statistical Tables]

1 Note on European Statistics:  Meaningful data on the trafficking 
and use of drugs in Europe are hard to find.  Those statistics 
which do exist are generally drawn from single sources--customs, 
police or treatment facilities--and do not reflect over-all trends 
in any one society, let alone the region.  We do know that there 
were dramatic increases in cocaine seizures in Europe from 1985-
91, with less than one ton confiscated in 1985, and nearly 
fourteen metric tons taken in 1991.  More than one-half of the 
latter amount (7.6 tons) were confiscated by authorities in Spain.  
Complete data are not yet available for 1992, but preliminary 
evidence suggests reductions in seizures in Spain and increases in 
northern ports and the United Kingdom.  Over-all cocaine seizure 
levels in Europe will probably be around 17 metric tons in 1992.

Cocaine usage appears to be increasing in Spain, the United 
Kingdom, France, and Italy.  Heroin, however, remains the drug of 
choice in Europe and the object of most governmental concern.  In 
Germany, for example, authorities report that the number of first 
time consumers of hard drugs increased thirteen percent in 1992 
over 1991.  Heroin usage increased more dramatically (by fifteen 
percent) than either cocaine or amphetamines.

One reason for this may be that increasing amounts of heroin are 
coming into the European Community through Eastern Europe, where 
the many political, economic, legal and social changes have 
provided new opportunities for traffickers. Community officials 
estimate that some 75 percent of the heroin available on the 
streets of Western Europe enters along the so-called "Balkan 
route," which is supplied from fields and laboratories Southwest 
Asia and originates in Turkey.  Political instability and 
uncertainties in the Central Asian republics of the former Soviet 
Union have contributed to related problems, both in trafficking 
and production.

Community officials, particularly the Germans, are concerned about 
the foregoing and are devoting considerable attention, bilaterally 
and through the Council of Europe's Pompidou Group to addressing 
drug-related problems in Eastern Europe.  Association agreements 
signed by the community with all six nations in the latter region 
call for cooperation in a number of areas (public awareness, 
chemical controls, money laundering) to address the problem. 
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