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US DEPARTMENT OF STATE
BUREAU OF INTERNATIONAL NARCOTICS MATTERS

INTERNATIONAL NARCOTICS CONTROL STRAGEGY REPORT
APRIL 1994



EUROPE                                      303  
     Albania                                305  
     Austria                                307  
     The Baltics                            309  
        Estonia                             309  
        Latvia                              310  
        Lithuania                           311  
     Belgium                                313  
     Bulgaria                               315  
     Cyprus                                 319  
     Czech Republic                         322   
     Denmark                                325 
      Finland                               327  
     France                                 329  
     Germany                                332  
     Greece                                 335  
     Hungary                                338  
     Iceland                                341  
     Ireland                                343  
     Italy                                  345  
     Luxembourg                             348  
     Malta                                  350  
     Moldova                                352  
     The Netherlands                        354  
     Norway                                 357  
     Poland                                 359  
     Portugal                               362  
     Romania                                365  
     Russia                                 367  
     Slovakia                               370 
     Spain                                  373  
     Sweden                                 376  
     Switzerland                            379  
     Turkey                                 382  
     Ukraine                                387  
     United Kingdom                         393  
     Central Asian States                   393  
        Kazakhstan                          394  
        Kyrgyzstan                          396  
        Turkmenistan                        397  
        Tajikistan                          399  
        Uzbekistan                          401  
     Transcaucasia                          404  
        Armenia                             404  
        Azerbaijan                          406  
        Georgia                             406  



ALBANIA

I.  Status of Country.

Long isolated from the rest of Europe, Albania plays a relatively minor role in the drug trade.  There is little information on the extent of drug trafficking or domestic consumption, but Albanian and foreign government authorities note an increase in heroin and cocaine smuggling along the borders with Greece and Macedonia and through the Tirana airport.  Smuggling operations are carried out by Greek, Italian, and Albanian groups. There have also been reports of domestic cannabis cultivation, and West European authorities believe some Southwest Asian heroin is transiting Albania en route to Western Europe.  

There has been a sharp increase in crime following the collapse of communism.  Long stretches of the border between Albania and Greece are unpatrolled, and customs officials at border crossings, sea and air ports have little experience detecting drug shipments. 

The private banking system in Albania is just beginning to develop after 50 years of rigid state control.  There are few opportunities for money laundering in the country's depressed economy.  The Government of Albania (GOA) is not a party to the 1988 UN Convention.

II. Country Actions Against Drugs in 1993

Albania does accord drug control a high priority.  The GOA formed a committee to address the drug problems comprised of representatives from Customs, the Ministry of Economy and Finance, Financial Police, the Ministry of Public Order, Ministry of Health, and the Ministry of Education, but it has only begun to meet.  

The lack of personnel and paucity of other resources hamper efforts to interdict drugs.  Albanian authorities recently did eradicate several marijuana fields manually.  The Ministry of Public Order established an office to coordinate antidrug law enforcement efforts, but it relies primarily on assistance from INTERPOL.  Customs and border officers received training from UK authorities through a European Union program.   

Corruption.  The USG is unaware of any official 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 1972 Protocol, and is awaiting accession to the 1971 UN Convention on Psychotropic Substances.  The 1933 extradition treaty between the US and Albania remains in force.  

Cultivation and Production.  GOA customs reports that hashish is grown in central Albania and sold in Greece and Italy, but there is no information on the extent.  The GOA has not kept statistics on drug production, trafficking or cultivation.  

III.  US Policy Initiatives and Programs

The Road Ahead.  The USG will encourage the GOA to expand its drug control activities and to establish the legislative and institutional capabilities necessary to support effective narcotics control.  The USG will urge Albania to ratify and implement the UN Conventions.  INM will include GOA participants in regional law enforcement and demand reduction training to support Albania's antidrug campaign.



AUSTRIA

I.  Summary

Austria is primarily a transit country for drugs destined for larger markets in Western Europe.  Most of the drugs enter Austria from its eastern neighbors.  Data is not yet available for 1993, but Austria recorded a record 45% increase in the number of drug-related indictments in 1992.  The Government of Austria (GOA) does not keep statistics on drug use, but is concerned that the problem is becoming more severe; it is especially concerned about a significant increase in drug-related deaths and the increase in AIDs cases.  Austria is not a significant producer of chemicals used to manufacture illicit drugs.

Austrian authorities believe some drug money is laundered in Austria but does not know the extent.  The GOA made money laundering a punishable crime in 1993, and enacted legislation that prohibits the opening of anonymous accounts by nonresidents; the law entered into force on January 1, 1994.  Austria signed the 1988 UN Convention in 1989, but has yet to ratify it.

II.  Status of Country

There are no comprehensive statistics on drug use, but officials reported that drug and AIDS-related deaths increased by 61% between 1991 and 1992: from 116 to 187.  Officials believe cannabis is still the drug of choice, but heroin abuse is a problem as well.

Austria is not a significant producer or transshipment point for essential and precursor chemicals.  It does have a system of voluntary monitoring of such chemicals under which importers advise Austrian police of suspect shipments.

Austria's bank secrecy laws have made it difficult to determine the magnitude of money laundering in Austria.  Banks must report suspicious transactions, record the name of any person suspected of engaging in money laundering and refrain from processing the transaction.  The GOA also enacted legislation prohibiting the opening of anonymous accounts by nonresidents which entered into force in 1994. 

The GOA has established a system for identifying, tracing, freezing, seizing and forfeiting narcotics-related assets.  Austria, however, does not share seized narcotics assets with other countries.

III.  Country Actions Against Drugs in 1993

Policy Initiatives. Austria is a member of the Financial Action Task Force, and increased its pledge to the UNDCP to approximately $500,000.  The GOA signed law enforcement cooperation agreements with  neighboring Central and Eastern European countries.  It also established training courses for law enforcement authorities from Hungary, the Czech and Slovak Republics, Slovenia, and Poland.
 
Agreements and Treaties.  The GOA signed the 1988 UN Convention in 1989 but has not yet ratified it.  Austria is generally meeting the Convention's goals and objectives on cultivation, distribution, sale, transport and financing, on law enforcement transit cooperation, and on demand reduction.  Austria must amend its legislation concerning extradition, asset forfeiture, judicial assistance and precursor chemicals to meet all of the Convention's goals and objectives.

Austria is party to the 1961 Single Convention on Narcotics and its 1972 Protocol.  The GOA and the USG are negotiating a mutual legal assistance treaty, and updating their 1934 extradition treaty.

Law Enforcement Efforts.   Austria has an effective law enforcement force.  In 1992, Austrian police made 7,805 drug-related arrests, a 45% increase over 1991.  Austrian police seized 96 kgs of heroin in 1993, as compared to 102 kgs in 1992.  Seizure statistics for 1993 are not yet available on cocaine and cannabis seizures, but in 1992 Austrian authorities seized 84 kgs of cocaine and 32 kgs of cannabis.  Austrian authorities cooperated closely with USG law enforcement officials on drug-related cases involving US citizens.

Corruption.  Corruption among GOA public officials is not a problem.  Austria prosecutes any public officials who might facilitate the production, processing or shipment of narcotic and psychotropic drugs and other controlled substances, or who discourage the investigation or prosecution of such acts.

Cultivation and Production.  Austria does not cultivate or produce illicit drugs.  The GOA has laws which prohibit the illicit cultivation or production of narcotic and psychotropic drugs and other controlled substances.

Drug Flow/Transit.  GOA authorities are concerned that Italian mafia and organized crime organizations headed by Turks, Serbs, Albanians, Russians, and Rumanians have established drug trafficking operations in Austria and its Eastern European neighbors.  Heroin from Afghanistan, Pakistan, and Iran transits Austria to Europe using routes in the Newly Independent States (NIS) of the former Soviet Union.  Drugs transiting Bratislava, Prague, and Budapest are generally brought into Austria in private cars, and by train. 

Demand Reduction Programs.  The GOA's Ministry of Health operates drug rehabilitation programs and educational programs aimed at youth.
 
IV. US Policy Initiatives and Programs

Bilateral Cooperation.  US and Austrian law enforcement authorities cooperate closely.  The US is seeking to conclude a Mutual Legal Assistance Treaty (MLAT) with Austria as well as to update the bilateral extradition treaty. 

The Road Ahead.  The USG will encourage Austria to expand its support and cooperation in international drug control organizations.  It will also urge Austria to ratify the 1988 UN Convention.



THE BALTICS

ESTONIA, LATVIA, LITHUANIA

I.  Summary

The drug trade is gaining a foothold in the Baltic states of Estonia, Latvia, and Lithuania.  Initially, the open borders and proximity to Scandinavia prompted Southwest Asian heroin trafficking networks to expand routes into the Baltic states.  Central Asian and Russian crime groups also established smuggling networks in the three countries.  Illicit amphetamines produced in Latvia continue to appear in West European markets.  Even so, health authorities in all three countries believe that, while drug abuse is increasing, it is still a relatively minor problem.  

Economic and political issues continue to dominate the agendas of the three governments, limiting their attention to the expanding drug problems, although there are some signs that the three nations, and particularly Latvia, are increasing their antidrug efforts.  However, they are faced with manpower and resource shortages, hampering drug control progress.  

Only Latvia has become a party to the 1988 UN Convention, although Estonia and Lithuania recognize the need to change their laws to formally accede to the UN conventions.  The UNDCP assisted all three governments to draft updated penal codes that will take the UN drug conventions into consideration; these are in various stages of review.  In the interim, the USSR's 1961 penal code is still in place.  



ESTONIA

II.  Status of Country

The drug trade is gaining ground in Estonia.  Domestic drug abuse and cultivation are still minimal, the crimes associated with trafficking and money laundering5are growing steadily.

Estonia is vulnerable to increased drug trade because of its location and lack of border control.  Law enforcement authorities report that drugs from Southwest Asia, Russia, Transcaucasia, Ukraine, and Lithuania are smuggled to Estonia by trucks, rail, and aircraft.  Opium and hashish cargoes are often transferred to Estonian ships bound for Europe, particularly Scandinavia.  Police authorities in 1993 seized 100 kgs of drugs on the Estonia portion of the Baltica highway, which links Europe and Scandinavia.
 
Russian and Central Asian crime groups, that include Estonians, control much of the drug smuggling.  Authorities report that drug networks from Afghanistan, Pakistan, and Turkey also have moved drugs through Estonia.  Local police regard money laundering as the most serious drug-related problem.  It is laundered through hard currency auction, the rare metal trade, and the purchase of raw materials in Russia for hard currency.  Moreover, because there is no effective state control over exporting of essential chemicals Estonia could be used by traffickers seeking them for drug production.  
 
II.  Country Action Against Drugs in 1993

Policy Initiatives.   The Government of Estonia (GOE) moved slowly to design an antidrug strategy.  A new criminal code and administrative code have been in effect since 1992, but they still lack many basic antidrug provisions, including chemical controls and criminal penalties for money laundering.  The GOE has begun to rebuild the police force, and established a special unit within the Central Criminal Bureau of the Estonian State Police Board to combat organized crime and drug trafficking.  From 1987 to 1993, the police recorded 292 cases connected with drugs, but only 114 convictions.  

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

Agreements and Treaties.  The GOE has not yet become a party to the 1988 UN Convention, the 1961 Single Convention or its 1972 Protocol, or the 1971 UN Convention on Psychotropic Substances.  Estonia must modify its laws before it can become a party and effectively implement the 1988 Convention.  The GOE is working with UNDCP to identify the necessary legislative changes.  The 1924 extradition treaty with the US remains in effect; Estonia has not concluded any other extradition treaties since it regained its independence in 1991.  Estonia has signed bilateral drug agreements with Latvia and Lithuania and several of the NIS countries.

Cultivation and Production.  Opium poppy cultivation is illegal, but poppies are still grown for cooking uses. 

Domestic Programs.  Estonian health authorities believe that opiate use is the largest drug problem, but that the total number of users of all illicit drugs is under 8,000.  The GOE has a limited drug abuse treatment program in four hospitals, with a total capacity of 170 beds.  Health authorities believe there is a need for more public awareness and prevention programs.  A new health code is under consideration but has not yet been adopted; it would accord drug addicts the same status as the mentally ill. 



LATVIA

II.  Status of Country

Latvia is ideally located as a conduit for illicit narcotics traffic.  It has good ports, and is a natural route from Russia and other Newly Independent States (NIS) to northern Europe.  Police report that at least 12 organized crime groups engage in drug trafficking in Latvia.  German and Latvian authorities uncovered the illicit production of amphetamines at a state-owned pharmaceutical plant near Riga in 1992, and police police have seized two clandestine amphetamine laboratories.  Latvia does have a monitoring system to enforce laws against such production, but it is only minimally effective.  

Most heroin and cocaine transiting Latvia is destined for markets in Western Europe, particularly Sweden.  Health authorities believe that domestic drug use is increasing, however.  Health statistics for 1991 (the most recent available) estimated a total of 10,000 drug users. 

Latvia is emerging as a regional banking center; officials fear it could become a drug money laundering center.  The government has no currency reporting requirements or other restrictions to inhibit money laundering.

III.  Country Action Against Drugs in 1993

Policy Initiatives.   Government leaders were preoccupied with with political and economic issues, but the Government of Latvia (GOL) took the first steps in forming an antidrug strategy and acceded to the three major UN drug Conventions.  The GOL also formed a National Commission on Narcotics to coordinate drug control efforts.  A lack of funds and authority hampered coordination efforts, but the Commission did draft new drug control legislation which the Parliament will review in early 1994.  Law enforcement also suffered as a result of financial and personnel shortages in the customs and police services.  There were no large seizures of narcotics in Latvia in 1993.

Corruption.  The USG is unaware of any reports of official narcotics-related corruption in Latvia.  Three officials of the state pharmaceutical company faced trial in 1993, but there was no evidence implicating top officials. 

Agreements and Treaties.  The GOL acceded to the 1988 UN Convention on February 24, 1994, and to the 1961 Single Convention, its 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances on July 16, 1993.  Latvia's laws must be modified to implement the 1988 UN Convention.  The GOL has prepared draft implementing legislation to be submitted to Parliament in 1994.  The GOL has requested a review of existing treaties with the US, most of which pre-date 1945; this is under consideration to by the USG. )  

Cultivation and Production.  Cultivation of opium poppy is illegal in Latvia.  Nevertheless, law enforcement officials believe that some is grown for cooking purposes, and for the production of illicit opium poppy straw extract. 

Domestic Programs.  The GOL operates five substance abuse centers, and finances several NGO programs at demand reduction treatment centers.  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 

Economic problems and the erosion of law and order have given a new impetus to drug trafficking and drug abuse in Lithuania.  Its location makes the country attractive to drug smugglers seeking routes to Western markets.  Authorities expect this trend to increase, as borders become more open.  Local organized criminal bands are moving into the drug trade and establishing close links with criminal organizations in the West and the NIS.  Police authorities estimate that about 10 percent of criminal gangs are linked to the drug trade.  Health authorities believe that drug abuse is rising, but report only 495 registered drug addicts in 1992, the most recent data available.  Police officials believe the total number of drug abusers may be as high as 10,000.  The most commonly abused drug appears to be injectable poppy straw extract.  
 
III.  Country Actions Against Drugs in 1993 

The GOL has begun to improve its antidrug efforts.  It has established an interagency task force to review and draft appropriate legislation to permit accession to the UN drug conventions.  However, this legislation thus far has no provisions against drug money laundering.  In 1993, the GOL bolstered enforcement by hiring additional personnel and intensifying exchanges with Western drug enforcement organizations.  Authorities reported 266 drug-related offenses in the year, and continued their modest campaign to eradicate opium poppy fields. 

Lithuanian drug enforcement officials cooperate closely with their counterparts in Latvia, Estonia and the NIS countries. Lithuanian authorities conducted a joint operation with Latvian and Russian police and customs officials against drug dealers.

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

Agreements and Treaties.  Latvia has not acceded to the 1988 UN Convention, the 1961 Single Convention or its 1972 Protocol, or the 1971 UN Convention.  Latvia's laws must be modified before the it can become a party to the 1988 Convention.  The GOL is working with UNDCP to develop the necessary legislative changes.

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; they report it is also cultivated for illicit poppy straw extract.

Domestic Programs.  The GOL is establishing a new health program which includes demand reduction, rehabilitation, public education.   

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG will promote increased Latvian attention to the drug problem, including accession to the UN conventions, as well as greater support from those West European nations most directly affected by heroin smuggling through the Baltic nations.  The USG is encouraging the UNDCP to assist Estonian, Latvian, and Lithuanian customs and police by providing detection equipment and training.  The USG has urged the three governments to identify drug problems, and the areas where assistance is most needed. 

The Road Ahead.  The USG will encourage the governments to expand their drug control activities and to establish needed legislative and institutional capabilities.  The USG will provide most of its assistance through the UNDCP, but will also offer bilateral law enforcement training.



BELGIUM

I. Summary

Belgium is mainly a transit country for illicit drugs bound for larger markets in Western Europe.  Authorities seized twice as much cocaine in 1993 as they did the year before, and seized significant amounts of cannabis and heroin as well.  Heroin use appears to be stable, but the use of synthetic drugs may be increasing. The Government of Belgium (GOB) created a special police financial unit to investigate suspicious financial transactions because of a suspected increase in drug money laundering.  Belgium is not a significant producer of precursor and essential chemicals, but they do transit the port of Antwerp.  Belgium participates in several international drug control organizations, and signed the 1988 UN Convention; ratification is expected in 1994.

II. Status of Country

The GOB does not maintain drug use statistics but authorities believe that the number of heroin users has leveled, while there has been an increase in synthetic drug use--particularly "ecstasy" and LSD--by Belgian youth . 

Belgium is not a significant producer of chemicals used in the manufacturing of illicit drugs, although significant quantities transit through Antwerp.  The GOB revised its legislation in 1993 regulating the export of essential and precursor chemicals to conform to the European Union's directive on chemical control.

GOB authorities believe that money laundering activities may be increasing.  The GOB created a special police unit to investigate suspicious financial transactions based on information supplied by banks.

III.  Country Actions Against Drugs in 1993

Policy Initiatives.  The GOB is a member of several international antidrug organizations, including the Heads of European Narcotic Law Enforcement Agencies (HONLEA), the European Committee to Combat Drugs (CELAD), the Dublin Group, and the UNDCP.  

The Ministry of Justice opened drug liaison offices in Paris, Vienna and Bogota to coordinate its international counternarcotics activities.  It plans to open additional offices in Wiesbaden, Washington, Rome, Madrid, Istanbul, London and Ottawa in 1994. 
 
Accomplishments.  In October, Belgium negotiated a bilateral accord with the Netherlands calling for the Dutch to reduce the number of coffee houses where "soft" drugs are sold, and to prohibit the sale of such drugs to foreigners, including Belgians, in those remaining open.  The Belgian Ministry of Justice expects to conclude the bilateral agreement in early 1994.

 Agreements and Treaties.  The GOB has not yet ratified the 1988 UN Convention.  The Parliament approved the Convention and is waiting for the country's regional governments to approve it.  Ministry of Justice officials believe administrative complications, rather than political considerations. are delaying formal approval, but they expect it to be ratified in 1994.  Belgium is a party to the 1961 Single Convention and its 1972 Protocol.  The US and Belgium have long had an extradition treaty.  An updated extradition agreement and a mutual legal assistance treaty have been signed and are in varying stages of the ratification process in the US and Belgium.

Law Enforcement Efforts.  Belgian law enforcement authorities are efficient and effective.  In July, they confiscated 2,225 kgs of cocaine at the port of Antwerp, their largest cocaine seizure.  The total amount of cocaine seized in 1993 was 2,800 kgs, double the amount seized in 1992.  Belgium authorities also seized 52 kgs of heroin and 620 kgs of marijuana, both above 1992 levels.  Authorities made 15,670 drug-related arrests during the year.

Corruption.  Public service corruption is not considered a problem in Belgium.  Authorities have taken measures to prevent and punish narcotics-related corruption.  Belgium does not as a matter of government policy encourage or facilitate illicit production, the  distribution of drugs or other controlled substances, or the laundering of drug money.  

Drug Flow/Transit.   Belgium will remain an important transit point for drug traffickers because of its excellent seaports and airports.  Most of the illicit drugs enter and leave Belgium through the ports of Antwerp and Bruges, the border with the Netherlands, and the airport in Brussels.  Belgian authorities believe drug traffickers smuggle their products from Istanbul via Romania, Bulgaria, Italy, and the Baltics--especially through the Lithuanian port of Riga.

Cultivation/production.  There is no significant cultivation or production of illicit drugs.

Demand Reduction.  The GOB supports anti-drug educational programs aimed at the country's youth.  Belgian authorities are considering using methadone to treat heroin addicts.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  USG and GOB law enforcement cooperation is excellent.  In 1993 Belgian and USG law enforcement authorities stopped heroin traffickers who were attempting to smuggle 50 kgs of heroin from Belgium to the United States.  The Belgian Ministry of Justice officials and the US Justice Department are establishing working groups for counternarcotics consultations.

The Road Ahead.  The USG looks to continued good working relationships with GOB law enforcement authorities, and to Belgium's active participation in and support for the UNDCP and other international drug control organizations.



BULGARIA

I.  Summary

Traffickers expanded routes and diversified operations through Bulgaria in 1993, especially as a conduit for Southwest Asian heroin.  International sanctions against Serbia increased the use of smuggling routes through Bulgaria.  Heroin traffickers also are targeting Bulgarian air and sea ports, and expanding land routes to circumvent improved security at West European airports.

Bulgarian authorities are concerned about increased domestic drug use.  The Government of Bulgaria (GOB) completed the process of ratifying the 1988 UN Convention, and will review a draft criminal code once the new Bulgarian judicial law passes.

II.  Status of Country

Bulgaria had been primarily a transit route for traffickers smuggling heroin to the West, although recently increased heroin smuggling has also fueled drug abuse in Bulgaria.  National statistics show that 25 percent of all students in Sofia have tried drugs, primarily hashish and heroin.  Trafficking groups appear to be expanding local distribution by introducing illicit drugs at low prices. 

Bulgaria's central location on the Balkan peninsula is attractive to drug smugglers, especially the large number of bonded (TIR) trucks that transit the "Balkan route;" the Kapitan Andreevo control post on the Turkish border processes 1,000 vehicles daily.  Sanctions against Serbia prompted drug traffickers to shift their smuggling from Serbia to Romania or the former Yugoslav Republic of Macedonia; both of these newer routes increase the use of Bulgaria as a transit area.  There are indications that air and sea smuggling is increasing. 

Turkish, Kurdish and Iranian groups control most drug trafficking; other networks are run by expatriates from former Socialist countries or from the Southwest Asian countries.  Bulgarians also are involved in the drug trade; seven Bulgarians were arrested and prosecuted on drug trafficking charges in Western Europe in 1993.  Investigations indicate that illicit psychotropic drugs, such as captagon, are processed and distributed in Bulgaria.  

Colombian traffickers are trying to establish a foothold in Bulgaria.  A number of casinos have opened in Bulgaria, financed, in part, with Colombian capital.  Bulgarian officials believe these could be used to distribute drugs.  

Although Bulgaria is not a major financial center, GOB officials believe the changing character of the banking and financial sectors, and the absence of adequate controls, increase opportunities for money laundering.  Moreover, authorities believe that the private protection or security businesses established after the collapse of the communist system are already laundering drug funds, and are poised to significantly expand their money laundering operations. 

III.  Country Actions Against Drugs in 1993 

Policy Initiatives.  Bulgaria undertook the final step in ratifying the 1988 UN Convention with legislation bringing its criminal code into line with the requirements of the Convention as well as with corresponding codes of West European nations.  The GOB anticipates a heated debate in Parliament over the criminal code; it includes criminal penalties for drug use, even though there is a strong movement to legalize drug consumption.

Accomplishments.  From January to October, authorities seized approximately 420 kgs of heroin and 4.5 kgs of opium, as well as 176 kgs of domestically produced precursor chemicals.  In 1993, seizures increased 120 percent over those in 1992.

Law Enforcement Efforts.  The Ministry of Interior's Central Service for Combatting Organized Crime and Narcotics Trafficking is working closely with the USG.  This led to the dismantling of several heroin smuggling operations involving couriers through Bulgaria to the United States.  The Central Organization strengthened its capabilities during the year and the number of drug seizures and investigations increased.  The police closed laboratories producing precursor chemicals used in the manufacture of illicit drugs.
 
Corruption.  The USG has no indications that senior Bulgarian government officials are involved in the drug trade.  The GOB states it will pursue the investigation and prosecution of any officials engaged in the drug trade.

Agreements and Treaties.  The GOB completed the ratification process of the 1988 UN Convention.  The ratification effectively updated the existing 1924 extradition treaty, and the 1934 supplementary extradition treaty between Bulgaria and the US, which allowed for the extradition of a heroin smuggler holding a British passport.  Bulgaria also is a party to the 1961 Single Convention, its 1972 Protocol, and the 1971 Convention.  
 
Cultivation and Production.  The GOB reports manually eradicating small plots of opium poppy on the Greek and Macedonian borders.  In 1992 the UN International Narcotics Control Board identified several Bulgarian state-owned pharmaceutical companies involved in the illicit production of controlled psychotropic substances.  

Domestic Programs.  The GOB is expanding some antidrug activities, but demand reduction efforts are limited and focus primarily on treatment rather than prevention.  

IV.  US Policy Initiatives and Programs

Policy Initiatives.  The USG is promoting greater attention by the GOB to the drug problem and by West European nations most directly affected by heroin trnasiting Bulgaria. 

Bilateral Cooperation.  The USG continued to cooperate with Bulgaria's antidrug agencies.  INM and the Central Service signed the first letter of agreement between the two countries to provide communications and investigation equipment.  In addition, the USG financed training for Bulgarian counternarcotics officials in the US and in regional training programs in Hungary, Poland, and Italy.

The Road Ahead.  The biggest challenge confronting Bulgaria with be the expansion of the heroin trade into and through the country.  The USG will encourage the GOB to bolster its antidrug campaign> It will also promote cooperation by Western European countries and support from the UNDCP to assist Bulgarian Customs and police with detection equipment and training.

The USG also will assist Bulgaria to develop the necessary legal infrastructure to implement the 1988 UN Convention and will provide limited law enforcement and demand reduction training and equipment.  

[Chart:  Statistical Tables]



CYPRUS 

I. Summary

Cyprus neither produces nor consumes significant amounts of narcotics.  Its location in the eastern Mediterranean, and its well developed facilities for business, tourism and international communications, make Cyprus a convenient brokering site for traffickers.  The Government of Cyprus (GOC) ratified the 1988 UN Convention in 1990.  Cyprus developed a broad range of laws to meet the goals and objectives of the 1988 UN Convention.  Police and customs authorities strictly enforce these laws, and cooperate closely with the USG and other foreign governments.  Authorities control the movement of bullion and currency, which deters traffickers from using Cyprus as a financial haven.  The Central Bank monitors monetary activities, preventing widespread drug money laundering activities. 

II. Status of Country  

Cyprus is not a producer or a significant consumer of narcotics. Authorities believe cannabis is the most widely abused illicit drug, but some heroin is used as well.  Cyprus is not a significant producer or importer of precursor and essential chemicals.  It has a system of voluntary control of such chemicals.

Cyprus' system of monetary and financial controls discourages potential money laundering operations.  Officials have no evidence that such activities take place.

III. Country Actions Against Drugs in 1993 

Accomplishments.  The GOC has entered a number of bilateral narcotics agreements.  These included an agreement with the Italy to exchange information on drug trafficking through the Balkans; a security cooperation agreement with Greece, with particular emphasis on terrorism, organized crime, and drug use and trafficking; and agreements with the Czech and Slovak republics to join forces to combat organized crime and drug trafficking.

Agreements and Treaties.  Cyprus, which ratified the 1988 UN Convention in 1990, has strengthened penalties for trafficking and adopted laws for the confiscation of profits and assets obtained from drug trafficking, and is meeting the goals and objectives of the Convention.  Cyprus is also a party to the 1961 Single Convention on Narcotics Drugs, its 1972 Protocol, and the 1971 Convention on Psychotropic Substances.  The US and Cyprus signed a customs mutual assistance agreement in 1987,  The two countries have long had an extradition treaty;negotiations are underway to update it.

Law Enforcement Efforts.  The government enforces drug laws strictly, and, in most cases, the judicial process operates effectively.  Narcotics-related criminal penalties range from several months to eight years, with longer sentences handed down to traffickers and dealers.  In 1993 Cypriot authorities made 123 narcotics-related arrests, compared to 62 in 1992.
 
The de facto division of the island into an area controlled by the Cypriot government and a Turkish speaking northern area, which is beyond its control, limit international enforcement cooperation.  GOC enforcement authorities have no direct working relations with Turkish Cypriot enforcement authorities, or with Turkish enforcement officials.

Corruption.  Corruption is restricted to isolated instances.  Cyprus prosecutes any public officials who facilitate the production, processing or shipment of narcotic and psychotropic drugs and other controlled substances, or who discourage the investigation or prosecution of such acts.

Cultivation/Production.  The only known production is the limited, but increasing, cultivation of cannabis for individual use.

Drug Flow/Transit.  The Cyprus police believe that their efforts to combat drug trafficking have converted Cyprus from a drug transit point to a brokering site for dealers.  Cyprus' location in the eastern Mediterranean, its proximity to Lebanon, its highly developed business and tourism facilities, and its modern telecommunications system attract traffickers to Cyprus, where they can arrange deals with third-country buyers.

GOC authorities believe that traffickers continue to smuggle some heroin and cannabis resin in the substantial ship cargo traffic which passes through Cyprus.  However, authorities believe this traffic may be decreasing because of improved stability in Lebanon, permitting Lebanese containerized freight to be shipped directly, without transiting Cyprus.

Demand Reduction Programs.  The GOC encourages demand reduction and drug use prevention, and supports private sector drug awareness programs.

IV.  US Policy Initiatives and Programs 

The USG and GOC cooperate closely on narcotics-related cases.  In November, Cypriot authorities quickly assented to the USG's request to conduct and complete a thorough search of a Cypriot-registered vessel suspected of carrying illicit drugs in international waters. A USG interagency team met with Cypriot officials and began the negotiation of the extradition treaty. 

The Road Ahead.  The USG anticipates continued excellent cooperation from both the Cyprus Police and Cyprus Customs.  The USG will encourage the GOC to enact laws which would broaden and enhance narcotics law enforcement activities, particularly on police undercover operations, electronic surveillance, controlled deliveries and asset seizures.

[Chart:  Statistical Tables]



CZECH REPUBLIC

I.  Summary

Drug trafficking through the Czech Republic is accelerating.  Western European seizures reveal that Turkish drug traffickers are using the Czech Republic to circumvent the former Yugoslavia en route to West European markets.  Production of illegal amphetamines, which began in the former Czechoslovakia, continues in the Czech Republic.  Authorities also express concern that drug traffickers may be targetting the banking industry to launder funds, although the privatization process and real estate transactions may have provided more significant opportunities for money laundering.  Moreover, trafficking groups are expanding domestic drug markets and are recruiting couriers among the Czechs.  

The Czech Government adopted a comprehensive drug control strategy emphasizing an approach with more emphasis on demand reduction.  The demise of Czechoslovakia allowed for the creation of a more efficient drug law enforcement apparatus, and there has been progress in enforcing chemical control.  The government has made little progress, however, in implementing the 1988 UN Convention.  Some drug-related threats, such as money laundering, receive insufficient attention, and the possession of drugs for personal use remains legal in the Czech Republic.  

II.  Status of Country

Drug traffickers target the Czech Republic as a transit route for Southwest Asian heroin and South American cocaine moving to Western European markets.  Initially, the conflict in the former Yugoslavia increased drug smuggling by Turkish and other key heroin trafficking networks through the Czech part of the Czechoslovak Republic and through Slovakia. 

Turkish trafficking networks, the key link between Southwest Asian producers and consumers in the West, still exploit the Czech Republic. Recent drug-related investigations have revealed the emergence of several Serbian and ethnic Albanian trafficking groups in the Czech Republic; and other investigations have shown a number of international drug rings, involving Russian and Ukrainian criminal groups, operating with Czech support.  Officials fear that South American cocaine traffickers are increasingly interested in the Czech Republic.  Authorities made a large cocaine seizure outside Prague in 1992, and small time couriers continue to use Prague's airport.

Illicit amphetamine production has increased in the former Czech and Slovak Federal Republic because of the relaxation of controls on chemicals used in the manufacture of illicit drugs.  Officials in Germany and Poland believe that amphetamine imports from the area are increasing.  Authorities also suspect that drug processing organizations are focussing on the chemical industry as a new supply source.

DEA reports that the Czech Republic has become an important money laundering center.  Money laundering is a crime, but bank secrecy regulations are strict, and controls are lax on vetting the sources of funds invested in the country's privatization process.  Czech officials believe that the Republic is used by organized crime groups from the Newly Independent States (NIS) and the former Yugoslavia, as well as by the Camorra, the Sicilian Mafia, and other criminal organizations. 

Health authorities cite a rise in drug abuse, particularly of heroin; but most data is anecdotal.  Health authorities note that most of the increase in the estimated 20,000 addict population is due to the arrival of foreign users, primarily from the former Yugoslavia.  Amphetamine abuse is the most prevalent drug problem.  However, police and other officials fear that, with increased prosperity, cocaine use will grow.  

III.  Country Actions Against Drugs in 1993  

Policy Initiatives.  Despite the release of a comprehensive counternarcotics strategy, drug control appears to be a relatively low priority for the Czech government.  The policy emphasizes adherence to the spirit, rather than the letter, of the 1988 UN Convention.  For instance, possession of illicit drugs for personal use is not a crime, and the law does not define possession, even though drug trafficking is a criminal offense. 

The Czech Government did little to implement its legislative commitments under the 1988 UN Convention.  Most antidrug legal provisions come from Czechoslovak law.  A recent change to the criminal code facilitates access to bank records for prosecutors and courts, but does not help to identify suspicious transactions.  Moreover, the government rejected a proposal which would have tightened requirements for banks to report large financial transactions. 

Law Enforcement.  The government focused on bolstering demand reduction activity, but did manage to create a single anti-drug police brigade and expanded the number of operations and arrests beyond the previous years' efforts through the CSFR.  Drug seizures, however, declined.

Czech narcotics police participated in joint operations with other European countries, the US, and Canada.  The antidrug brigade recently arrested and extradited to the US an American citizen sought on drug trafficking charges.

Corruption.  The USG is unaware of any reports of official narcotics-related corruption in the former Czech and Slovak Federal Republic or in the new republics.  

Agreements and Treaties.  The Czech Republic stated its intention to honor the Czech and Slovak Federal Republic's ratification in 1991 of the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs, the 1972 Protocol thereto, and the 1971 UN Convention on Psychotropic Substances.  The bilateral extradition treaty between Czechoslovakia and the US has been enforced in the Czech Republic and, in effect, has been updated to encompass drug-related offenses under the 1988 UN Convention.  The UN expects the successor Republic to honor the specific obligations of the UN conventions.
 
Cultivation and Production.  Authorities believe that amphetamine production is extensive, but, again, most data is anecdotal.  According to Czech officials, approximately 11,000 hectares were legally cultivated with opium poppies for pharmaceutical products and for poppy seeds.  There is no information available about large scale cultivation of cannabis, but authorities note that some cannabis cultivation for personal use occurs.

Demand Reduction.  The new government policy emphasizes demand reduction and related drug education programs.  The Ministry of Health will form a center for drug epidemiology, and programs will be established to maintain health and social counseling services.  The Ministries of Defense and Economy will address drug prevention issues. 

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG will promote increased Czech Government attention to the drug problem, and will encourage support from those West European nations most directly affected by the drug flow from this region.  In 1993, the USG increased cooperation with the Czech antidrug agencies, providing assistance through the DEA and US Customs.

The Road Ahead.  The USG will encourage Prague to expand drug control activities and to establish the necessary legislative and institutional capabilities.  The USG will urge the government to enact domestic legislation to implement the 1988 UN Convention.  The USG will channel most assistance through the UNDCP, and will provide limited law training to assist the Czech government in its antidrug campaign.  Additionally, the US, in collaboration with Italy and UNDCP, will support Czech participation in an East European regional demand reduction program in Sicily.  



DENMARK

I. Summary

Denmark's excellent transportation facilities make it a locus for drug traffic to the Nordic area.  Traffickers use Copenhagen as a transit point for heroin moving from Southwest Asia to Scandinavia, Western Europe and the United States.  Significant amounts of South American cocaine transit Denmark, bound for other European countries. Danish officials are concerned that illicit drug use may be growing, particularly use of cocaine and of the synthetic drug "ecstasy."

Danish authorities are involved in domestic and international narcotics control fora.  They are assisting the Baltic states to combat narcotics trafficking and use.  In 1993, Denmark passed new money laundering legislation, and introduced a program to control the shipment of precursor chemicals.  Denmark became a party to the 1988 UN Convention in 1991.

II. Status of Country

Danish officials are concerned that narcotics abuse may be growing.  They estimate that there are approximately 10,250 addicts, 250 more than reported in 1992.  The main drugs of abuse are hashish and heroin, but there is evidence of increased use of cocaine and the synthetic drugs, such as "ecstasy."

Despite being a major international financial center, Denmark is not a significant money laundering center.  Moreover, close government regulation of the financial sector and new money laundering legislation make it unlikely that Denmark will become a major money laundering center.

Denmark's new precursors monitoring program limits the ability of narcotics producers to purchase chemicals from Denmark.

III.  Country Action Against Drugs in 1993

Policy Initiatives.  Denmark is active in the UNDCP, contributing $490,000 in 1992, and participates in the Dublin Group.  Denmark, together with its Scandinavian neighbors, is assisting the Baltic States to develop effective antinarcotics forces.   Most of Denmark's efforts are focused on assisting police forces in Lithuania.

Accomplishments. Denmark enacted a law against money laundering to comply with the European Union's (EU) directive on money laundering.  It also established a task force to monitor the export of precursor and essential chemicals.

Agreements and Treaties.  Denmark meets the goals and objectives of the 1988 UN Convention, which it ratified in 1991.  The US and Denmark have an agreement to exchange narcotics trafficking information, and an extradition treaty dating from 1928.  Denmark is also a party to the 1961 Single Convention and its 1972 protocol, and to the 1971.

Law Enforcement Efforts.  In the first nine months of 1993, Danish authorities seized 39 kgs of heroin, 10 kgs of cocaine, and 859 kgs of hashish. Danish law permits seizure and asset forfeiture in drug-related criminal cases.  However, this is limited to the proceeds of the crime; businesses cannot be seized.  Danish officials enforce existing asset seizure and forfeiture laws and cooperate with foreign authorities.  No statistics on asset seizures have been compiled by the government.  Seized assets are turned over to the State Treasury, since Danish law does not permit either the dedication of seized assets to law enforcement agencies, or the sharing of assets with other countries.

Corruption.  Official corruption is not a problem in Denmark.  The government reported no cases in which senior officials were implicated.  The government does not as a matter of policy encourage or facilitate illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  Senior officials neither engage in production or distribution of drugs nor launder drug proceeds.

Drug Flow/Transit.  As Scandinavia's only land border with Western Europe, and as the hub of Nordic air and sea transportation, Denmark is a convenient entry point for illicit drugs.  Copenhagen is a transit point for Southwest Asian heroin destined for the other Nordic countries, Western Europe and the United States.  South American cocaine arrives in Denmark mostly by air.  More than 85 percent of the heroin and cocaine captured in Denmark was seized in the Copenhagen area, primarily at Kastrup International Airport.

Cultivation and Production:  The manufacture and cultivation of illicit drugs are not problems in Denmark.

Demand Reduction Programs.  The Danish Government has an active drug abuse prevention program.  Danish schools teach the dangers associated with drug use.  The school program is supplemented by antidrug programs at youth centers.  Drug abusers are treated in a large number of institutions throughout Denmark; there are 18 facilities in Copenhagen.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  The USG anticipates continued law enforcement cooperation with Danish authorities.

Road Ahead.  The US will encourage Denmark's active participation in the Dublin Group, its support of UNDCP programs, and its bilateral antinarcotics efforts with the Baltic states.



FINLAND

I. Summary

A small amount of narcotics trafficking in Finland supplies the local addict population and transits to third countries.  Finish authorities believe illicit drug use in Finland increased in 1993.  Finland does not produce narcotic substances or precursor chemicals.  Law enforcement officials believe there is some money laundering; a draft bill making money laundering a punishable offense was sent to Parliament for review.  Finland has not yet ratified the 1988 UN Convention.

II. Status of Country

Although the Government of Finland (GOF) does not keep statistics on drug consumption, officials believe that drug use is increasing, based on the rise in narcotics related crime, and greater seizures of hashish and amphetamines.  Various government organizations are undertaking surveys to determine the amount of drug consumption.
 
III. Country Actions Against Drugs in 1993

Policy Initiatives.  Law enforcement officials are providing narcotics enforcement training for their Estonian counterparts.  The Finns and Estonians have close linguistic and cultural ties, allowing for close cooperation on antidrug efforts.

Accomplishments.  The draft legislation making money laundering illegal was sent to Parliament.  Authorities believe Parliament will pass this legislation in early 1994.

Agreements and Treaties.  Finland has signed the 1988 UN Convention; with the exception of money laundering, its legislation is consistent with the Convention's goals and objectives.  The GOF expects to ratify the Convention in 1994, once money laundering legislation is in place.  Existing legislation covers the distribution, sale and transport of narcotic substances, as well as extradition, law enforcement, transit cooperation, demand reduction, essential and precursor chemical control, and the use of narcotic substances.

Drug Flow and Transit.  Finland has a small but growing narcotics problem due in part to increased cultivated-drug flows from the countries of the former Soviet Union.  However, various other drugs, including amphetamines smuggled from the Netherlands, are the primary source of domestic narcotic abuse.  Heroin and cocaine have small markets in Finland, and occasionally transit Finland to larger markets in Western Europe.

Demand Reduction Programs.  The Finnish Ministry of Social Affairs and Health operates programs to prevent narcotics abuse.  The programs emphasize treatment rather than punishment.  Alcohol abuse is the principal focus of GOF substance abuse programs.

IV. US Policy Initiatives and Programs

The USG anticipates good cooperation with Finland to curb trafficking and abuse.  USG law enforcement officials will offer training opportunities for their Finnish counterparts.  In the last four years, police officials, at the GOF's expense, have attended a variety of counternarcotics courses in the United States.  In 1993, the FBI and DEA collaborated with Finnish authorities on several narcotics-related investigations.

The Road Ahead.  USG-GOF training cooperation is expected to continue as a changing Finnish narcotics situation calls for training in different techniques.  The USG considers it essential that the GOF ratify the 1988 UN Convention.  The USG will encourage the GOF to continue assisting Estonia and other countries of the former Soviet Union in their antidrug efforts.



FRANCE

I.  Summary

France is an important transit country for drugs from the Middle East and Southwest Asia, and for cocaine from South America.  Vigorous enforcement efforts by the French police have led to significant drug seizures; the most current statistics available show that cocaine seizures increased 95% in 1992 over 1991.  Heroin abuse remains the largest domestic problem, but government officials believe cocaine use is increasing.

The French government closely monitors the shipment of precursor and essential chemicals, and adopted the European Union's (EU) chemical regulation in 1993.  Authorities believe there is money laundering in France, despite its having been outlawed since 1987.  France is active in the Financial Action Task Force (FATF).  The Government of France (GOF) is active in international antidrug organizations, including the Dublin Group, where it assumed the chair in 1994.  France also contributes to the UNDCP.  It has been a party to the 1988 UN Convention since 1990. 

II.  Status of Country

French officials believe heroin abuse is the primary drug problem.  Drug-related deaths in 1992 numbered 499, compared to 405 in 1991; 1993 data has not yet been released.  Authorities believe that cocaine use is increasing, as evidenced by increased cocaine seizures.  France produces a variety of precursor and essential chemicals.  The GOF actively monitors and controls the use of precursor chemicals through an interagency office, under the auspices of the French Customs service.  France adopted the European Union's (EU) chemical regulations in 1993.

While authorities believe drug money laundering occurs in France, they assert that the problem is less acute than elsewhere in Europe.  The GOF outlawed drug-related money laundering in 1987.  France's asset seizure law is considered one of the strongest in Western Europe; it allows authorities to seize a convicted trafficker's assets, to the extent of illegal gains, regardless of whether the particular assets seized were legally or illegally obtained.  A Finance Ministry office, TRACFIN, conducts initial investigations of suspicious bank activities.  It refers drug money laundering cases to the police or customs for further investigation.

III.  Country Actions Against Drugs in 1993

Policy Initiatives.  France is active in a variety of international drug control fora, including the FATF, the UNDCP, and the Dublin Group.  Annual French expenditures for overseas counternarcotics assistance of all types (police training, crop substitution, prevention, etc.) totalled approximately $10 million in 1993, including $2.3 million pledged to the UNDCP.  The French Foreign Ministry recently created an Office of Security Affairs which will cover terrorism, narcotics and organized crime issues.  
 
In fall 1993, the GOF announced a new antidrug campaign which includes increased health treatment facilities and strengthened educational efforts.  The French Interior Minister, a staunch conservative, called for a national debate on the de-penalization of drug use.  However, the French public, and most GOF officials, oppose easing French antidrug sanctions, which are among the European Union's harshest.

Agreements and Treaties.  The GOF is a party to and is meeting the goals and objectives of the 1988 UN Convention.  The USG and GOF have narcotics-related agreements, including a 1971 agreement for coordinating action against illicit trafficking.  The US and France have an active extradition relationship under the governing extradition treaty.

Law Enforcement.  French law enforcement forces are efficient and effective.  Drug trafficking arrests increased to 3,162 in 1992, a 20 percent increase over 1991.  In 1992, cocaine seizures increased 95 percent over 1991 figures, while heroin seizures decreased to 327 kgs. 

Corruption.  Public corruption related to drugs is not a problem in France.  The GOF does not as a matter of policy encourage or facilitate illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  As far as the USG is aware, senior officials neither engage in the production or distribution of drugs nor launder drug proceeds.
 
Drug Flows/Transit.  France is a major transshipment point for illicit drugs, especially heroin.  Heroin is shipped from Pakistan, India, Sri Lanka, Lebanon, and Syria where it either enters the French domestic market or is transhipped elsewhere in Europe or to North America.  The amount of heroin that transits France en route to the United States is not known.

France also is a transit route for hashish originating in Southwest Asia, particularly Pakistan, from Lebanon, and from North Africa.  The hashish is destined for domestic French consumption, for other European localities, and for Canada.   France is also a growing transhipment point and consumer market for South American cocaine.  Colombian cartels distribute their product through Italian criminal groups in southern France, near the borders of Spain and Italy.  Cocaine enters France via ship and overland, destined for other European markets.

Cultivation and Production.  The manufacture and cultivation of illicit drugs is not considered a problem in France.  

Demand Reduction.  The French drug control agency, the General Delegation on the Fight Against Drugs and Addiction (DGLDT), is responsible for coordinating demand reduction programs.  It has a budget of approximately $44 million.  Drug education efforts involve teachers, counselors, medical personnel, and the government.  The GOF's new antidrug campaign includes an annual day of national drug awareness to sensitize youth to the dangers of narcotics.

IV.  US Policy Initiatives and Programs

Counternarcotics law enforcement cooperation is good between the GOF and the USG.  The USG will offer the French police opportunities to participate in money laundering courses and in specialized drug training schools.  The USG encourages France to monitor the activities of one-time heroin traffickers residing in France.

The Road Ahead.  The USG looks forward to the French chairing of the Dublin Group, to its active participation in the FATF, and its continued support of UNDCP.  Through these organizations and bilateral consultations, the USG will encourage the GOF to maintain its counternarcotics assistance to narcotics production and transit countries, especially in areas where France has particular national interests and influence: such as the Caribbean, Francophone Africa, and the Middle East.  The USG will also press for a bilateral agreement on sharing seized and forfeited assets.



GERMANY

I. Summary

The Federal Republic of Germany (FRG) is an important drug trafficking and consuming country.  Heroin represents the largest volume of illicit trafficking in the FRG, usually shipped to or through Germany from the Southwest Asia via Turkey, Bulgaria, Hungary, Poland, Romania, and Austria.  German officials believe heroin is the primary drug of abuse, but cocaine consumption is increasing.  The FRG also is a significant consumer of amphetamines from Poland and the Netherlands.

Some FRG leaders, and such key cities as Frankfurt, call for the legalization of narcotics use.  However, senior German drug policy officials, including Germany's "drug czar", as well as the majority of the German population, oppose legalization.

Germany is a major international banking and finance center, with limited mechanisms to curb or deter money laundering.  Recent legislation improved the authorities' ability to trace illicit profits, and seize trafficker's assets, but prosecutors are still learning how to apply these new tools.

Germany produces a large number of precursor and essential chemicals.  The industry complies with chemical control regulations and avoids commerce with known narcotics producers.  Most German companies cooperate with law enforcement agencies in investigating suspicious shipments.  The authorities recently stopped a number of suspect shipments.  Nevertheless, Germany is a source of chemicals used in illicit drug manufacturing, and German brokers have been identified as arranging chemical shipments.  Germany is implementing the European Union (EU) chemical regulations which came into effect in 1993.

Germany ratified the 1988 UN Convention in 1993.  The FRG actively participates in various antidrug organizations, including the Dublin Group; Germany organized Dublin Group meetings on counternarcotics assistance and alternative development contributions to narcotics control objectives for Eastern Europe.

II.  Status of Country

German officials believe heroin remains the primary drug of abuse in the FRG.  Overdose deaths declined from 1,501 for the first nine months in 1992 to 1,182 for the same period in 1993.  Authorities attributed the decline to a reduction in the amount of heroin transported to the FRG.  Authorities, however, remain concerned about increases in cocaine consumption. 
 
Germany's central location, its major seaports and airports, and an extensive highway system, make it a convenient conduit for drug transshipment.  Trafficking is aided by the openness of Germany's borders and the ease of entry granted to European Union citizens and "guest workers."  Poorly trained East European border patrol authorities add to the country's attractiveness to organized crime groups as a transit route for drugs.

III. Country Actions Against Drugs in 1993

Policy Initiatives.  The government passed a law on profit-tracing and on reporting suspicious financial transactions designed to curb money laundering.  It announced a "security package," expected to be ready for legislative action early in 1994, which includes stronger sentences and law enforcement measures against drug syndicates and other criminal organizations.

Agreements and Treaties.  The FRG is generally meeting the goals and objectives of the 1988 UN Convention, which it ratified in 1993.  The existing USG-FRG accords include a 1978 agreement on controlling drug abuse, and a 1956 agreement to exchange information on trafficking.  The US and Germany have an active and cooperative extradition relationship under their extradition treaty.  In 1993, Germany extradited a number of fugitives wanted on drug trafficking charges to the US.

Accomplishments.  The FRG completed the legislation process for implementing the 1988 UN Convention in 1993.  In April 1993 it hosted a Dublin Group meeting on alternative development; in October, it organized a meeting in Bulgaria on antidrug assistance to Eastern Europe.

Law Enforcement Efforts.  Within the framework of Germany's relatively narrow police investigative powers, enforcement against narcotics trafficking is generally effective.  In the first nine months of 1993, authorities seized 595 kgs of heroin, 647 kgs of cocaine, 743 kgs of marijuana, and 80 kgs of amphetamines.  German authorities are establishing local interagency task forces to fight organized crime and narcotics trafficking.
 
Corruption.  Corruption is not a significant problem in German law enforcement.  Authorities have taken strong measures to prevent and punish any narcotics-related corruption.  The government does not as a matter of policy encourage or facilitate illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  Senior officials neither engage in production or distribution of drugs nor launder proceeds.

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

Drug Flow/Transit.  Heroin represents the largest volume of illicit drugs trafficked in the FRG, usually shipped to or through Germany from Southwest Asia via Turkey, Bulgaria, Hungary, Poland, the Czech Republic, Romania, and Austria.  Germans, Turks, Slavs, Moroccans, Algerians, Italians, and Colombians account for the greatest number of traffickers.  

The FRG is a significant consumer of amphetamines produced in Poland and the Netherlands, and of cannabis and opiates from Southwest and possibly Central Asia.  Colombian cocaine traffickers recently have turned to Rostock and Germany's other Baltic ports as a route to the European market.  Frankfurt international airport is a center of narcotics smuggling operations; shipments in sea cargo containers also are significant, particularly of marijuana.  FRG authorities encounter numerous cases of individuals importing small quantities of marijuana from the Netherlands by car or train.

Demand Reduction Programs.  Annual federal spending on drug prevention, treatment, and research is approximately $80 million; several German states also have significant narcotics programs.  An extensive network of public health and research services carried out prevention and treatment programs in 1993. However, despite increases in federal and state funding, the need for such programs still exceeds availability.  The FRG promotes outpatient treatment models to supplement the traditional long-term therapies supported by most states and insurers.

IV.  US Policy Initiatives and Programs

Bilateral Cooperation.  Cooperation between the FRG and USG on drug law enforcement and the extradition of drug traffickers remains good.  The FRG is also active in international bodies like the Dublin Group and the UN Commission on Narcotics Drugs. The US and the FRG  consult regularly on narcotics matters at senior and working levels.

The Road Ahead.  The USG will work with Germany bilaterally and in the EU context to strengthen applicable regulatory and enforcement mechanisms, especially in areas of money laundering and chemical control.  The USG will urge Germany and the EU to take the lead in drug control efforts in Eastern Europe and with the Newly Independent States.



GREECE

I.  Summary

Greece is a transit route for narcotics from drug producing nations in the Middle East and South Asia, destined primarily for Western Europe and, to a lesser extent, the United States.  Civil strife in the former Yugoslavia diverted many traffickers to overland routes to Western Europe, increasing the amounts of heroin and hashish transiting Greece.  Greek officials believe domestic drug abuse is becoming a larger problem, especially with locally grown marijuana and imported hashish and heroin.

Greece is a party to the 1988 UN Convention.  The Government of Greece (GOG) passed legislation in July, 1993,  which strengthened penalties for drug trafficking and use.  The law also established a state-controlled agency, Okana, chaired by the Ministry of Health, to coordinate demand reduction efforts. 

Although Greece is not an important financial center for the eastern Mediterranean region, nor an important tax haven, USG and GOG authorities suspect that drug-related money is being laundered.  Greece is not a major supplier or transhipment point for chemicals used to manufacture illicit drugs.

Cooperation is good between Greek enforcement authorities and USG agencies.  The GOG participates in various international antidrug organizations, including the Dublin Group, where it chairs the regional working group for the Balkans/Near East.

II.  Status of Country

Officials believe domestic drug abuse is increasing.  There is a growing market for readily available, locally grown marijuana and imported hashish and heroin.  Amphetamines and barbiturates are prevalent as well.  GOG authorities estimate there are approximately 16,000 cocaine users, mainly among the upper-middle class.  Authorities estimate there are approximately 40,000 heroin users in Greece; 70 overdose deaths were reported in 1993.  Drug overdose deaths, coupled with the visibility of heroin paraphernalia around schools and parks, have heightened public consciousness on the drug problem.

Greece is not considered an important money laundering center, but US and Greek authorities suspect there is drug money laundering.  The GOG has adopted legislation making money laundering a crime.  It has not adopted legislation permitting the seizure and forfeiture of trafficking-derived assets; however, Greek authorities have cooperated with the USG in freezing accounts which have been shown to contain drug-related proceeds.

Greece does not produce significant amounts of precursor or essential chemicals, and the GOG monitors imports and shipments of those chemicals.  Greece is in the process of implementing chemical control legislation instituting reporting and record keeping requirements for shipments of precursor and essential chemicals. 
 
III.  Country Action Against Drugs in 1993

Policy Initiatives.  Greece is active in a variety of international antidrug organizations, including the Dublin Group, where it chairs the Balkan/Near East working group.  Greece helped organize a Dublin Group meeting in Bulgaria on drug control assistance to Eastern Europe and the NIS. 

Accomplishments.  Greece passed legislation in July which toughened penalties for narcotics trafficking and use.  The law also established a state-controlled agency, Okana, chaired by the Ministry of Health, to coordinate Greek demand reduction efforts.  

Agreements/Treaties.  Greece ratified the 1988 UN Convention in 1992, and is generally meeting its goals and objectives: especially on drug cultivation, distribution, sale, transport, on law enforcement transit cooperation, and on demand reduction.  While it enacted "know your customer" regulations in 1993, Greece still must institute changes to its legislation on asset forfeiture and precursor chemicals to meet all the Convention's goals and objectives.  Greece and the US have an extradition treaty and an agreement to exchange information on narcotics trafficking, both dating from 1928.  Greece also has a bilateral agreement on narcotics matters with Russia.

Law Enforcement Efforts.  The Central Narcotics Council (CNC), consisting of representatives of the Ministry of Public Order, Ministry of Finance, and the Merchant Marine Ministry, helps to coordinate drug enforcement activities among the police, customs and coast guard.  Law enforcement authorities seized 5.5 kgs of cocaine, 134 kgs of heroin, 150 kgs of hashish, and 250 kgs of marijuana in 1993.

Corruption.  Narcotics-related corruption is not a problem in Greece.  The GOG does not as a matter of policy encourage or facilitate the illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  It does have laws which effectively deter such actions by government officials.

Cultivation/Production.  Cannabis is cultivated in small amounts for local use, the only illicit drug produced in Greece.  Authorities seized approximately 20,000 marijuana plants in 1993.

Drug Flow/Transit.  Greece is a transshipment route for heroin and hashish from the Middle East and South Asia; most is destined for Western Europe, although a small amount goes to the US as well.  Drugs are smuggled in ships and on bonded "TIR" trucks.  The trucks typically enter Greece via the Syria-Piraeus ferry or overland through Turkey, then cross by ferry to Italy.  Hashish is also off-loaded in remote areas of Greece and transported to Western Europe by boat or overland.  There has also been an increased flow of amphetamines and barbiturates from Bulgaria, destined for Egypt, across Greek territory. 

Demand Reduction Programs.  GOG demand reduction and drug abuse prevention programs emphasize policing of schools to prevent the sale of narcotics, and public service advertisements aimed at Greece's youth.  The new state agency, Okana, chaired by the Ministry of Health, coordinates demand reduction efforts, including substance abuse prevention and rehabilitation, and methadone treatment.  The Center for the Therapy of Dependent Individuals (KETHEA), a non-governmental organization (NGO), is also involved in drug abuse treatment programs.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  The USG anticipates continued close cooperation with Greek law enforcement agencies.  DEA and US Customs provided a number of training seminars in 1993 for Greek narcotics enforcement officers.  DEA maintains an office in Athens, and added a third agent, responsible for northern Greece, in 1993.  DEA hosts monthly narcotics meetings 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 in improving the exchange of law enforcement information and in improving cooperation among the participants. 

Road Ahead.  The USG will collaborate with Greek narcotics control agencies, and will encourage the GOG's active participation in international antidrug organizations, including the Dublin Group.  The USG also will encourage Greece to implement chemical control legislation requiring specific record keeping and reporting of precursor and essential chemicals shipments. 



HUNGARY

I.  Summary

Drug traffickers expanded and diversified their operations through Hungary, out-pacing the government's interdiction and other drug control efforts.  Drug organizations are now shipping more drugs, mostly heroin but also some cocaine, through Hungary to Western Europe.  Hungarian officials believe that drug traffickers also continue to take advantage of the banking industry to launder funds, although information is limited.   

The Government of Hungary (GOH) stepped up interdiction efforts, but was hindered by shortages of trained customs and police personnel, equipment, and other resources.  Similar problems limit demand reduction programs.  Political and economic problems in the region prevented the emergence of a coordinated antidrug campaign among East European nations.  Hungary has signed, but not yet ratified, the 1988 UN Convention. 

II.  Status of Country 

Hungary's location between eastern opium source countries and West Europe consumer countries traditionally has made it a transhipment route.  Heroin is smuggled through Hungary in sealed containerized cargo trucks.  Recent investigations revealed that smugglers are using water routes as well; 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.  Customs officials cited several heroin seizures on Russian cargo ships transiting the Danube.

Hungarian National Police officials believe that the opening of Eastern Europe increased drug smuggling over the past year.  Seizure reports indicate that the strife in the former Yugoslavia prompted traditional Balkan route heroin trafficking to move to parts of northern Hungary.  Turkish drug trafficking groups lead smuggling operations through Hungary.  Officials note, however, that drug networks now also involve significant numbers of Russians, Syrians, Lebanese, Ukrainians, Albanians, and Khazaks.  South American traffickers also made inroads into Hungary; several Colombian cocaine couriers were apprehended at Budapest's international airport.

Hungary's antiquated banking system, lacking adequate controls, is attracting drug money laundering.  Customs officials believe that Italian mafia and other organized crime groups may already be exploiting the Hungarian banking system and bank secrecy laws to launder drug funds.  Investigations also have revealed drug money laundering by Colombian traffickers.  Authorities do enforce existing controls on the amount of currency brought into the country, and banks are now required to maintain records of suspicious transactions.  However, few if any such transactions have yet been reported to the National Bank of Hungary.  

While most drugs transit Hungary in route to markets in Western Europe, health officials also noted an increase in domestic drug abuse.  Drug use traditionally entailed a crude variety of morphine made from home-grown opium poppy and amphetamines, but a recent Health Ministry survey suggests an expansion in heroin use throughout the country as well. 

II.  Country Actions Against Drugs in 1993

Policy Initiatives.  Hungary's financial and political problems received high priority, but concerns about the rising drug threat have prompted key policy changes over the past few years.  A high-level interministerial committee was created in 1991 to coordinate antidrug efforts among the 15 ministries concerned with the issue.  The Health Ministry has headed this committee, promotes efforts to collect drug abuse data, and is reviewing legislation designed to meet the requirements of the 1988 UN Convention.

Law Enforcement.  GOH Customs increased its interdiction efforts and established mobile drug squads with training from the USG and the  UNDCP.  Customs is developing a nationwide drug information computer system, linked to other enforcement systems in the region, and plans 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; existing law must be modified before Hungary can ratify it.  Hungary is a party to the 1961 UN Single Convention, its 1972 Protocol, and the 1971 UN Convention.  Hungary participates in the EC's Pompidou group, the Customs Cooperation Council (CCC), and has bilateral antidrug agreements with the US, UK, and Sweden.  The EC's association agreement with Hungary also includes provisions for antidrug cooperation and assistance.  Hungary 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.  While most poppy is used for cooking purposes, some may be used to produce crude forms of opium.  There is no evidence, however, of wide-scale illicit poppy cultivation for the manufacture and export of heroin.  

Domestic Programs. The government's limited enforcement capabilities reflect the continued need for resources and training.  Hungary does receive aid from several West European countries, including the UK and Germany, and from the UNDCP.  Most of this assistance has been to bolster Customs interdiction efforts.  

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG seeks to promote increased GOH attention to the drug problem as well as greater support from Western Europe, which is most directly effected by heroin smuggling through Hungary.  The USG also encourages UNDCP to assist Hungary's customs and police agencies with detection equipment and training.  

The USG has increased direct cooperation with Hungary's drug enforcement agencies.  Over the past three years, the USG provided assistance through the DEA and US Customs for Hungarian law enforcement and customs officials to participate in a number of training course: including the regional advanced drug enforcement school, an international narcotics enforcement management seminar in Washington, a forensic chemist seminar, and a seminar on precursor and essential chemical controls held in Warsaw.  The FATF, with USG encouragement, conducted a seminar in Budapest for East European policy makers on countering money laundering.  INM also has funded demand reduction seminars while USAID funded a needs assessment of demand reduction requirements in Hungary. 

The Road Ahead.  The GOH has stated that antidrug priorities over the next year include increasing interdiction efforts, improving capabilities to detect and prevent money laundering, and establishing additional drug prevention and treatment programs.  

The USG will continue to encourage the GOH to expand its drug control activities, and to ratify and implement the 1988 UN Convention.  INM will to provide limited law enforcement and demand-reduction training and equipment to assist Hungary's antidrug campaign.  We will encourage Western Europeans to provide significant assistance as well. 



ICELAND

I. Summary

Iceland, with a population under 300,000, has a modest drug problem by international standards.  However, the continuing growth in illicit drug abuse is a matter of some concern, especially the growing practise of combining amphetamines with other drugs.

There is no legislation criminalizing money laundering, but the extremely small size of the Icelandic banking system makes it unattractive for money laundering.  Government of Iceland (GOI) officials are drafting new legislation that will serve as a deterrent.

The GOI has not become a party to the 1988 UN Convention.  However, an inter-Ministry committee continues to work on a package of implementing legislation to meet the requirements of the Convention; Iceland plans to become a party to the Convention following passage of the implementing legislation in 1994. 

II.  Status of Country

Approximately 70 percent  of Icelandic drug abusers are unemployed people in their 20's with little education, according to Reykjavik narcotics police.  Hashish has been the most widely used drug for the last 25 years, but narcotics police are most concerned about users who combine amphetamines with other drugs, such as strong pain relievers.  Cocaine remains popular among the upper-middle class.  Authorities also note the growing use of LSD and "ecstasy." 

In November, the Government of Iceland (GOI) narcotics police made the first heroin seizure in Iceland.  However, authorities believe there are very few heroin addicts. 

While money laundering is not a problem, Iceland is drafting legislation to deter any such activities.  this legislation would meet the goals of the 1988 UN Convention.

Iceland is not considered a significant producer nor a transit point for precursor or essential chemicals.  It has a system of voluntary controls for imports of such chemicals for domestic use.

III.  Country Actions Against Drugs in 1993

Agreements and Treaties.  While Iceland has not yet become a party to the 1988 UN Convention, it generally meets the Convention's goals and objectives.  GOI officials plan to sign and seek Parliamentary approval of the Convention after conforming legislative changes are in place in 1994.  Iceland is a party to the 1961 Single Convention, its 1972 Protocol, and the 1971 Convention.  The USG and GOI have an extradition treaty dating from 1902; a supplementary extradition treaty was signed in 1905.

Law Enforcement Efforts.  The Reykjavik Narcotics Police, which has national jurisdiction, the Customs Service, and local police departments have enforcement responsibilities in narcotics cases.  Authorities seized 17 kgs of hashish and 3 kgs of amphetamines during the year, slight increases over 1992 seizures.  

Icelandic law enforcement authorities cooperate closely with Interpol, the "PTN" Nordic countries narcotics control organization, and with DEA in efforts to intercept traffickers.

Corruption.  Public corruption is not a problem in Iceland.  The GOI does not as a matter of policy encourage or facilitate illicit production or distribution of illicit drugs or the laundering of drug money.  Senior officials neither engage in the production or distribution of drugs nor launder drug proceeds.

Cultivation and Production.  There is no known cultivation and production of illicit drugs in Iceland.  The GOI has laws which prohibit the production of narcotic and psychotropic drugs and other controlled substances.

Drug flow/Transit.  Most illicit drugs are smuggled into Iceland by airline passengers coming from Europe.  Small aircraft are used increasingly used to transport narcotics within and through Iceland.  Icelandic authorities believe that most drugs in Iceland are purchased in the Netherlands and Denmark.  The Iceland narcotics police believe that illicit drugs are imported primarily for local consumption, although small amounts may continue to the US for consumption as well.

Demand Reduction Programs.  The GOI emphasizes drug abuse prevention through a comprehensive drug abuse education program.  The USIS office in Iceland works with Icelandic officials in the Ministries of Education and Health, providing international visitor grants for leaders in the field of drug abuse prevention education.

IV. US Policy Initiatives and Programs

Cooperation is good between the USG and GOI law enforcement authorities.  The USG established a Joint Information Coordination Center (JICC) in Iceland in 1989.  The USG is working closely with the GOI on the operation of the JICC program, and helps to identify more efficient ways for Icelandic Customs agents to transmit data from the field.  DEA has funded computer training courses for the GOI law enforcement agent in charge of the JICC. 

The Road Ahead.  The USG looks to close cooperation with the GOI, particularly in monitoring shipments between the US and Europe through the JICC database.  The USG will encourage the GOI to become a party to the 1988 UN Convention.



IRELAND

I.  Summary

Ireland's long, infrequently patrolled coastline and the country's proximity to larger European markets make it attractive to narcotics traffickers as a transit base.  Government of Ireland (GOI) authorities seize shipments of cannabis, heroin and synthetic drugs, such as "ecstasy" and LSD.  

In 1993, Irish law enforcement authorities made one of their infrequent seizures of cocaine, although authorities believe it is not widely used in Ireland.  Cannabis is the most commonly abused illicit drug, but there are also some heroin addicts in Dublin.

Ireland is neither a significant producer nor an importer of precursor and essential chemicals.  Irish officials are concerned about a possible increase in drug money laundering.  Officials believe Parliament will pass a law against money laundering and ratify the 1988 UN Convention in early 1994.

II.  Status of Country

Irish officials are concerned that drug use among the young may be growing, particularly of synthetic drugs, such as "ecstasy."  Cannabis is still the drug of choice, but authorities are concerned that the 1993 seizure of cocaine may signal an increase in its use, mainly by the upper middle class.  Authorities believe heroin abuse has stabilized, but estimate that the 4,000-5,000 heroin addicts in Dublin are responsible for approximately half of all violent crime in the capital. 

Ireland does not produce significant amounts of precursor or essential chemicals.  Irish authorities are unaware of the import or export or diversion of precursor chemicals.  Authorities suspect that the Irish Republican Army (IRA) may sporadically import small amounts of chemicals used to manufacture amphetamines.

Officials believe that drug money laundering is becoming more common, especially through IRA investments in legitimate businesses, and through the purchase of real estate by foreigners involved in drug trafficking.

III. Country Actions Against Drugs in 1993

Policy Initiatives.  Authorities stepped up air and sea surveillance in the GOI, to contain smuggling across the country's borders.  Ireland is a member of the Dublin Group, and fully cooperates with US and European governments on counternarcotics issues.

Accomplishments.  The Customs Service created a 74-member drug team in January 1993.  The team works from 10 sites around the country, and has six maritime and six drug canine teams.

Agreements and Treaties.  Officials believe Parliament will ratify the 1988 UN Convention once it passes a new money laundering law in early 1994.  The GOI is meeting the 1988 Convention's goals and objectives on cultivation, distribution, sale, transport, law enforcement and transit cooperation, and demand reduction.  The GOI still requires changes to laws concerning money laundering, asset forfeiture, judicial assistance, and precursor chemicals to meet all of the Convention's goals and objectives.  Ireland is a party to the 1961 Single Convention, the 1972 Protocol thereto, and the 1971 Convention.  The USG and GOI have an extradition treaty dating from 1983.

Drug Flow/Transit.  Irish authorities believe that most of the  drugs entering Ireland come from Morocco and the Middle East.  

Law Enforcement Efforts.  The Irish Customs Service and the police are primarily responsible for the enforcement of narcotics-related laws, and are effective and efficient.  The Irish Navy also participated in several maritime seizures during the year.  GOI authorities made two of their largest seizures;  one involved a British yacht, and the other resulted from the accidental discovery of a cannabis cache on the ocean floor by a French trawler in Irish territorial waters. The value of drugs seized increased 60 percent in each of the last two years, but there is no good data on the total quantities of illicit drugs entering the country.  Authorities seized 32 kgs of cocaine, 120 kgs of heroin, 4,000 tablets of LSD, and 3,200 tablets of ecstasy during the year.

Demand Reduction Programs.  Authorities emphasize demand reduction and treatment, and promote educational programs on the dangers of drug use.  The GOI is also increasing the number of methadone programs to treat heroin addicts.

Corruption.  Narcotics related corruption among Irish public officials is not a serious problem.  The GOI does not as a matter of policy encourage or facilitate illicit production or distribution of drugs or other controlled substances or the laundering of drug money.  It does have laws which effectively deter any such actions by GOI officials.

IV. US Policy Initiatives and Programs

Cooperation between USG law enforcement officials and the Irish Custom Services is good.  The USG does not operate antidrug programs in Ireland nor does it provide antidrug assistance to the GOI.

The Road Ahead.  The USG will encourage Ireland to ratify and implement the 1988 UN Convention.  The USG also encourages Ireland's close cooperation in various international drug control organizations, such as the Dublin Group.



ITALY

I.  Summary

Italy is a transit route for Southwest and Southeast Asian heroin destined for other parts of Europe and the United States.  Further, the Colombian traffickers supplying cocaine to the American market are increasing their efforts in Italy in an uneasy alliance with Italian organized crime.  Cocaine and other drug use seemed to increase in 1993, but heroin use and trafficking appeared to stabilize, or even decrease in some areas. 

Italian drug policy emphasizes demand reduction and treatment, but authorities also focus on law enforcement, particularly in Mafia-related activities.  Italians voted more than 50 percent in favor of removing penalties for the personal use of drugs in an April referendum.  Italian law enforcement authorities believe that this will allow them to concentrate on major traffickers rather than consumers.

Italian authorities believe that significant investments in the financial sector come from organized crime activities, including narcotics trafficking.  Italy has a number of statutes to deter money laundering, including a new law which went into effect in 1993 that increases money laundering penalties. 

Precursor and essential chemicals diversion is not a serious problem; the Government of Italy (GOI) closely monitors such shipments.  Italy is actively involved in several international drug control organizations including the Financial Action Task Force (FATF) and the Dublin Group, and is a major donor to the UNDCP.  Italy became a party to the 1988 UN Convention in 1990.

II.  Status of Country

While heroin use leveled off or even decreased in some areas, cocaine abuse grew in 1993.  Law enforcement and public health authorities estimate that there are 400,000 to 700,000 drug users in Italy, with heroin abuse accounting for at least 150,000 and cocaine for 150,000 to 200,000.  GOI authorities are also concerned about an increase in the use of synthetic drugs, particularly "ecstasy."  Officials reported 655 drug-related deaths in 1993, down from 1,214 in 1992.

Italy enacted financial recording laws in 1992, but the Guardia Di Finanza (Financial Police) believe that significant investments in the financial sector comes from organized crime, including narcotics trafficking.  In response, Italy enacted a new money laundering law which increases the penalties for those convicted of money laundering.

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

III.  Country Actions Against Drugs in 1993

Policy initiatives.  In an April referendum on removing penalties for the personal use of drugs, 55 percent of voters favored the measure.  The law permits administrative sanctions, e.g., suspension of driver's licenses, rather than prison terms.  Italian officials believe this will permit law enforcement authorities to focus more on cases against major traffickers.

Italy is active in many international drug control organizations, including the FATF and the Dublin Group, in which it chairs the Eastern Europe working group.  Italy also is a major donor to UNDCP; in 1992-1993 it contributed $1.5 million.  Italy's primary narcotics assistance project is a $4.3 million telecommunications information system that links law enforcement agencies of Western European and Central/Eastern European countries.  Italy hosted a Balkan drug conference in Rome to promote the system.

Accomplishments.  The new money laundering law took effect in October providing strong penalties for illegal money laundering.  The law establishes five predicate offenses for the crime of money laundering, one of which is narcotics trafficking.  In keeping with European Union (EU) policy, the law also mandates the reporting of suspicious monetary transactions. 

Agreements and Treaties.  Italy is a party to the 1988 UN Convention.  Apart from its policy to lift criminal penalties on the personal use of drugs, the GOI's counternarcotics efforts are consistent with the goals and objectives of the Convention.  Italy is a party to the 1961 Single Convention, the 1972 Protocol thereto, and the 1971 UN Convention.  The US has a mutual legal assistance treaty with Italy, as well as an extradition treaty. 

Law Enforcement Efforts.  In 1993, authorities seized 1,703 kgs of cocaine, 916 kgs of heroin, 762 kgs of marijuana, and 10.5 metric tons of hashish.  Additionally, there were several seizures of "ecstacy."  Authorities arrested 21,442 suspects on drug trafficking charges in 1993, down slightly from 1992. 

Drug Flow/Transit.  Italy is a transit country for Southwest and Southeast Asian heroin en route to other European countries and, to a lesser extent, the United States.  Significant drug shipments from Lebanon and Syria transit Greece in bonded and sealed TIR trucks, and cross by ferry to Italy.  Drug smugglers also use sea and air cargo, Nigerian and Lebanese couriers, and international mails.

Colombian traffickers have stepped up cocaine imports and distribution in Italy in a loose association with Italian organized crime.  Cocaine is smuggled mostly by merchant vessels from Colombia and Brazil.

There were several cases in which American criminal organizations brokered cocaine transactions between Colombian and Mexican suppliers and Italian buyers.  There were also instances of Italians trading cocaine for heroin in the United States.

Corruption.  While corruption of public officials has been a problem in Italy, there is no information on the extent to which such corruption is narcotics-related.  The GOI has taken legal measures to prevent and punish public corruption, especially by senior government officials.  Italy does not, as a matter of government policy, facilitate illicit production or distribution of drugs nor the laundering of drug money.

Cultivation/Production.  Cannabis cultivation is becoming an enforcement problem for Italian state police in Sicily and southern Italy.  All cultivation is for domestic consumption.

Demand Reduction Programs.  Italy emphasizes demand reduction and treatment, and the government opened several drug addiction treatment facilities in recent years, but no new efforts were begun in 1993.

IV.  U,S. Policy Initiatives and Programs

Policy Initiatives.  Cooperation is excellent between US and Italian law enforcement authorities.  USG agencies work closely with Italian authorities on joint antidrug and organized crime operations.  A US-Italian working group composed of representatives from the Ministry of Interior and law enforcement agencies meets periodically to review cooperation against organized crime, including drug trafficking.

The DEA office in Rome held a conference in June on chemical diversion operations, attended by officials from 35 countries; this was followed by related training seminars.  DEA also held two intelligence training courses, funded by the GOI. 

The Road Ahead.  The USG will support Italy's efforts to counter narcotics-related activities of organized crime, including money laundering.  The USG will encourage Italy to support multilateral organizations such as UNDCP, and will continue to urge its active participation in the Dublin Group, particularly in the Eastern European working group.



LUXEMBOURG

I. Summary

Luxembourg is a transit route for small amounts of illicit drugs.  While the number of registered drug users in the country is modest, Government of Luxembourg (GOL) authorities believe drug use is growing.  Luxembourg is not a significant producer or exporter of precursor and essential chemicals.  Luxembourg is a major banking and financial center, where bank secrecy laws have fostered money laundering activities.  However, the GOL is working aggressively to control illicit money laundering; in 1993 it toughened its money laundering law.

Law enforcement cooperation is excellent between American and Luxembourg authorities.  GOL officials are involved in a number of international drug control organizations, including the Dublin Group.  Luxembourg is a party to the 1988 UN Convention. 

II.  Status of Country

The number of registered drug users is in Luxembourg is small (872 in 1993), but authorities are concerned that the number is increasing.

While the country is neither a significant producer nor exporter of precursor and essential chemicals, Luxembourg's Parliament is reviewing draft precursor chemical control regulations designed to ensure compliance with the European Union's directive on chemical control, which Luxembourg was required to adopt in 1993.

GOL officials believe that money laundering is related mostly to cocaine trafficking.  Luxembourg's financial sector law went into effect in April, strengthening penalties for drug-related money laundering.  The law also requires the financial sector to report suspicious transactions to public prosecutors.  The government established a public account in 1992 to handle forfeited drug money and assets, but no forfeited assets have yet been deposited.

III.  Country Actions Against Drugs in 1993

Policy Initiatives.  Luxembourg contributed approximately $590,000 to Gambia, Sierra Leone, Guinea, and Guinea Bissau to purchase computer equipment for coastal surveillance against drug smuggling.  This program is conducted in collaboration with the Canadian Agency for International Development and the World Bank.

Agreements and Treaties.  Luxembourg is a party to the 1988 UN Drug Convention and is generally meeting the Convention's goals and objectives.  Luxembourg is also a party to the 1961 Single Convention and its 1972 Protocol, as well as the 1971 UN Convention.  The US and Luxembourg updated their extradition agreement in 1987, but it remains to be signed. 

Law Enforcement Efforts.  Law enforcement authorities seized 10 kgs of heroin, and 15 kgs of cocaine during 1993, up slightly from 1992.

Corruption.  Official corruption is not a problem.  The GOL does not encourage or facilitate the illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  Luxembourg law imposes severe penalties for police malfeasance.

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

Cultivation/Production.  There are no reports of any cultivation or production of illegal drugs.

Demand Reduction Programs.  Luxembourg's drug policy has traditionally focused on demand reduction.  Luxembourg continues to target the school-age populace for its education programs.  These are coordinated by the Ministry of Education, the Ministry of Public Health and the Ministry of Justice.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  The USG anticipates good cooperation with Luxembourg authorities on money laundering cases.  The GOL has readily shared information with the USG on joint counternarcotics investigations, and has used information provided by the USG to seize drug traffickers' assets.

The Road Ahead.  The USG will encourage cooperation on important money laundering cases, and in multilateral antidrug fora such as the FATF and the Dublin Group.



MALTA

I.  Summary

Malta neither produces nor consumes significant amounts of narcotics, nor is it likely to become an importer of precursor and essential chemicals.  There is no current evidence of active money laundering, but the Maltese Parliament is reviewing new money laundering legislation to deter any such activity.  Malta is not yet a party to the 1988 UN Convention.  In 1993 the Parliament did approve a law allowing for controlled deliveries and undercover drug-related investigations, in accordance with the Convention's goals and objectives.

II.  Status of Country

There are no statistics available on drug use. However, authorities believe cannabis is the most widely used drug, although a small number of citizens do use heroin.  Malta is not a producer or importer of precursor and essential chemicals.

While authorities have no evidence of money laundering, the country's proximity to Italy makes it a potentially attractive location for Italian organized crime groups to conduct offshore banking activity.  Asset seizure legislation already exists in Malta, but prosecutors must prove that the assets are the product of drug sales or other illegal activity.  The Government of Malta (GOM) did not report any assets seized in 1993.

III.  Country Action Against Drugs in 1993

The Maltese Parliament approved a bill covering a broad range of measures to help authorities investigate, punish or rehabilitate drug traffickers and abusers.  The law comes into force in the spring of 1994, and authorizes the use of controlled deliveries and undercover operations; this brings Malta closer to full compliance with the 1988 UN Convention.  Parliament is reviewing legislation to control money laundering as part of a reform of financial and offshore banking activities.  The GOM also is contemplating legislation to authorize telephone taps.

Agreements and Treaties.  Malta is not yet a party to the 1988 UN Convention, but has met the Convention's requirements on cultivation, distribution, sale, transport, financing, law enforcement, transit cooperation, and demand reduction.  The GOM still requires changes to legislation on chemical and financial controls, and on controlled delivery provisions, to meet the Convention's goals and objectives fully.  Malta is a party to the 1961 UN Single Convention, its 1972 Protocol, and the 1971 Convention.

Law Enforcement Efforts.  Maltese police investigated over 150 drug related cases during the year; almost 100 persons were arraigned.  Of these, 70 were charged with possession and 20 were accused of trafficking.  There were four cases of marijuana importation and five cases of cannabis cultivation during the year.  Heroin was the drug most often seized by the police, but among the 60 substantial drug seizures recorded during 1993 there was one kg of cocaine.

Corruption.  Official corruption is infrequent, and the government would prosecute any public officials who might facilitate the production, processing or shipment of narcotic and psychotropic drugs and other controlled substances, or discourage the investigation or prosecution of such acts.

Cultivation/Production.  The only known production is the small-scale cultivation of cannabis for personal use.  

Drug Flow/Transit.  Maltese authorities believe that most of the narcotics transiting Malta enter in containerized cargo through the port of Freeport, en route to Italy and other European countries.  Authorities also believe smaller drug shipments arrive by couriers aboard commercial aircraft or aboard pleasure craft.  Maltese officials cooperate closely with Italian law enforcement officials to prevent the transshipment of drugs through Malta to Italy, and use drug detector dogs and patrol boats to monitor sea traffic. 

Demand Reduction Programs.  The GOM encourages demand reduction and drug use prevention, and provides support to private sector drug awareness programs.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  The USG assisted the GOM in modifying laws to bring Malta into compliance with, and to permit Malta to become a party to, the 1988 UN Convention. 

The Road Ahead.  The USG will continue to encourage the GOM to take the steps necessary to become a party to the 1988 UN Convention and will offer guidance to Maltese officials where appropriate.



MOLDOVA

I.  Status of Country

Moldova plays a relatively minor role in the drug trade.  Moldovan authorities believe, however, that narcotics production, trafficking and domestic consumption are growing rapidly, although there are few statistics on the problem.  Southwest Asian heroin is transiting Moldova en route to Western European markets, according to authorities in Chisinau.  Moldova is also becoming an important transit point for opium cultivated in the Newly Independent States (NIS).  According to Moldovan authorities, gypsies control drug smuggling in the northern region.  They are also involved in production of opium and psychotropic drugs. 

Drug-related social problems also are expanding.  Moldovan officials believe that there is an increase in drug-related crime.  During 1992, and in the first six months of 1993, law enforcement groups arrested more than 700 suspects for narcotics related crimes, including nationals from South and Southeast Asia.  In 1993, police eradicated 156 hectares of wild hemp, 1,087 plantations of hemp (120 hectares), and 903 plantations of oil-bearing poppy (12 hectares).

Domestic drug use problems date from the mid-1980s.  Moldovan officials assert that the Gorbachev anti-alcohol campaign prompted the increased use of more readily available opiates and hashish.  The Government of Moldova (GOM) estimates that 25 percent of the populace under 30 have tried drugs.  Opiates and cannabis products are the drugs most widely abused.

II. Country Action Against Drugs in 1993

Policy Initiatives and Law Enforcement Efforts.  There is a growing recognition by the GOM that the drug problem is accelerating, but narcotics law enforcement is not a priority for Moldova.  The GOM does not have a strategy for dealing with illicit drug trafficking.  Antidrug legislation was forwarded to Parliament, but has yet to be reviewed.  Enforcement efforts focus on drug abusers; supply control efforts were limited to an annual police operation on interdiction and some eradication of opium poppy and cannabis.  The absence of antidrug legislation and police resources hamper this operation.

Agreements and Treaties.  The Soviet Union was a party to the 1988 UN Convention, the 1961 Single Convention, and the 1971 Convention.  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.  However, Moldova has not yet taken the steps necessary to accede to the Conventions.

The USG has only limited information on whether Moldova is meeting the goals and objectives of the 1988 UN Convention.  However, the GOM is preparing updated penal codes that will allow it to take elements of the UN drug conventions into consideration.  

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

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG encouraged the GOM to identify existing problems and possible areas for assistance, and urged the GOM to implement the objectives of the UN drug conventions.  Moreover, the USG is promoting antidrug assistance for Moldova from those Western European nations most directly effected by heroin smuggling through Moldova.

The Road Ahead.  The USG will encourage Moldova to expand its drug law enforcement activities, strengthen its legislative and institutional antidrug infrastructure, and implement the UN drug Conventions.  The USG will provide most of its counternarcotics assistance for the NIS through the UNDCP, but will offer bilateral regional law enforcement and demand reduction training as well.  



THE NETHERLANDS

I. Summary

Dutch drug policy continues to make a distinction between "hard" drugs, such as heroin and cocaine, and "soft" drugs, particularly cannabis products.  Dutch policy is to treat drug use as a medical and health problem, with an emphasis on prevention and treatment.  Narcotics and dangerous drugs are illegal, but the use of "soft" drugs by adults is tolerated under specific conditions.  The Dutch Government strongly opposes narcotics trafficking, and works closely with other countries to combat it.  There is growing concern about the use of the Netherlands as a transit point for South American cocaine and Southwest Asian heroin destined to other European countries, and as a drug money laundering site.

The Dutch are tightening aspects of their domestic drug legislation.  In 1993, Parliament voted against changing the current drug policies, but did ask for stricter regulation of coffeehouses where cannabis is openly sold to adults for personal use.

Dutch authorities are concerned about increased money laundering activities through the country's financial facilities.  The Parliament passed an addendum to the criminal code providing for the prosecution of financial officers involved in money laundering.  In addition, legislation was enacted which now requires all financial institutions to report cash transactions higher than 25,000 guilders.  Until this year, only banks were required to report suspicious transactions, although the authorities encouraged and received voluntary reporting as well.

The GON became a party to the 1988 UN Convention in 1993.  It also ratified the 1990 Convention of Strasbourg on money laundering and confiscation.  The lower house of Parliament is to debate a US-Netherlands agreement on asset sharing in 1994.

II. Status of Country

The government strongly opposes the trafficking and use of "hard drugs" like heroin and cocaine, but tolerates the adult use of "soft drugs" such as marijuana.  Authorities are working to impose stricter controls on the large number of coffeehouses where adults can buy limited amounts of cannabis products for personal consumption.  Coffeehouses were originally intended to protect young people from experimenting with "hard drugs," but the number of coffeehouses has proliferated, and there are signs that some are being used by organized crime for various purposes.  

Authorities estimate there are 600,000-800,000 users of cannabis products; a survey of 10,000 students indicated that the percentage of high school students who have smoked marijuana rose from 4 percent in 1984 to 13 percent in 1992.  One private 1992 study suggested there were approximately 20,000 heroin addicts in the Netherlands, and that the average age of addicts was increasing (33 in 1992).  Dutch authorities are concerned that cocaine use may be increasing.  A study by the Rotterdam Municipal Council showed that over 3 percent of Rotterdam's youth over age 14 have used cocaine.  

 The Netherlands is a major transit and brokering country for European chemical exports.  In 1993 it adopted chemical controls measures in accordance with the European Union (EU) chemical regulations.  Its chemical industry voluntarily monitors export of chemicals.

The Netherlands is also a financial transit point, and some drug funds have been laundered within the Dutch financial system.  The Parliament passed an addendum to the section of their criminal code concerning the receipt of stolen goods, effectively the Netherlands' new money laundering regulation; it provides for the prosecution of institutions for money laundering offenses.  In response to the EU money laundering directive, legislation on reporting suspicious transactions and identifying financial service customers was enacted in 1993.

III.  Country Actions Against Drugs in 1993

The GON participates in a variety of multilateral counternarcotics organizations, including the UNDCP, to which it contributed $368,000 in 1993, the Council of Europe's Pompidou Group, and the Dublin Group, where it serves as chair for the Caribbean working group.  The Hague was chosen as the headquarters for Europol, a European-wide police organization which will focus initially on narcotics trafficking and collateral activities. 

The lower house of Parliament is to consider the proposed US-Netherlands agreement on asset sharing, and a bill to change Dutch judicial procedures to permit the Netherlands to implement the agreement.  The Parliament is expected to approve it in the spring of 1994.

Accomplishments.  The Netherlands became a party to the 1988 UN Convention, and the 1990 Convention of Strasbourg on money laundering and confiscation.  National legislation to implement the Strasbourg Convention which enables special law enforcement teams to confiscate assets purchased with illegally obtained funds is now in effect.  Apart from its policy toward the domestic use of cannabis products, the GON's narcotics control efforts are consistent with the goals and objectives of the 1988 Convention.

Agreements and Treaties.  The US and the Netherlands enjoy a cooperative relationship on extradition issues, and their extradition treaty has been in effect since 1983.  The GON extradited several individuals wanted in the US for narcotics offenses during the year.  The Dutch also have cooperated under the US-Netherlands Mutual Legal Assistance Treaty (MLAT), which entered into force in 1983.

Law Enforcement Efforts.  Dutch Customs seized 2,958 kgs of cocaine, 880 kgs of heroin, and 116.2 metric tons of marijuana during the year.  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. 

Corruption.  The Dutch have recognized that corruption among drug enforcement personnel is a growing problem.  The GON does not as a matter of policy encourage or facilitate the illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  Senior officials neither engage in production or distribution of drugs nor launder drug proceeds.
 
Drug Flow/Transit.  Heroin from Southwest and Southeast Asia, cocaine from South America, hashish from North Africa and the Middle East, marijuana from South America, the Philippines and West Africa, all transit the Netherlands in large quantities, bound for other European markets.  Most drugs were smuggled in containerized sea cargo.  

An overland containerized shipment of 14 metric tons of hashish, en route to the Netherlands, was seized in Uzbekistan.  Evidence of additional new routes of transport for containerized cocaine and marijuana included the seizure of marijuana in Latvia which had originated in Nigeria, and the a seizure in Russia of 1,000 kgs of cocaine in Russia en route to the Netherlands.  GON officials believe that most of the cocaine entering the Netherlands for distribution within Europe is shipped via maritime vessels from Colombia and Venezuela.  Only 13 percent of the cocaine seized in the Netherlands in 1993 came from Suriname, due to increased law enforcement efforts at Schiphol airport; these measures have deterred traffickers from using that airport as a point of entry into the Netherlands. 

Cultivation/Production.  There is significant domestic production of LSD, amphetamines, and similar drugs.  LSD, MDMA, and amphetamines are smuggled into other European countries and the United States.  In 1993, Dutch authorities arrested a US citizen and closed the largest LSD laboratory in the world.  The lab was producing drugs for export from the Netherlands.  Dutch authorities recognize that the increasing domestic cultivation of cannabis is a problem, and began reporting seizures of domestic grown cannabis separately from seizures of imported cannabis in 1992.

Demand Reduction Programs.  Netherlands' demand reduction activities, including education, public information and treatment programs are among the most comprehensive in the world.  School and public awareness programs include cannabis products among the substance health hazards.  Addicts are offered methadone maintenance and other treatment programs, including free hypodermic needles.  Dutch officials estimate that their extensive programs reach about 80 percent of users.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  The US-Netherlands Asset Sharing Agreement, along with the existing Mutual Legal Assistance Treaty, will provide a solid legal framework for bilateral drug control cooperation.  The USG enjoys close cooperation in the area of law enforcement, particularly with the Dutch Central Criminal and Investigation Service, which assigns drug liaison officers abroad.  Continued Dutch participation and information exchanges with the USG about antidrug activities through organizations such as the UN and the Council of Europe will further broaden USG and GON drug control cooperation.

The Road Ahead.  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.



NORWAY

I. Summary

Norway is not a significant producer of drugs, but authorities believe it is becoming an increasingly important transit country for European-bound narcotics from Southwest Asia.  Nigerian groups and migrant workers participate in these transit and trafficking operations.  While drug-related deaths declined in 1993, Norwegian officials are concerned that more urban youth are using drugs, particularly cannabis.

Drug money laundering and the diversion of precursor chemicals are not problems in Norway; the Government of Norway (GON) has a system of laws and voluntary controls to prevent them from becoming a problem.

Norway is a member of several international drug control organizations, including the Dublin Group and the UNDCP.  Norway has signed, but not yet ratified, the 1988 UN Convention.

II. Status of Country

Norway is primarily a consumer country for narcotics.  While drug-related deaths in Oslo decreased for the first time in ten years, declining from 70 in 1992 to 43 in 1993, authorities believe drug abuse among young urban Norwegians may be growing.  The results of a September poll showed over 20 percent of Oslo youths have tried cannabis, compared to 17 percent in 1992, and heroin use had increased from 1.5 to 2.5 percent.  Authorities are also concerned about increased cocaine and synthetic drug use, particularly LSD.  Norway is not a significant producer or exporter of precursor and essential chemicals.  It has a system of voluntary chemical controls among producers and brokers.

While money laundering is not yet considered a problem, Norway amended its money laundering law to apply to proceeds from all criminal activity, not just narcotics.  Further regulations are expected to enter into force in 1994; these regulations will increase bank reporting and record keeping, and will require banks to report suspicious transactions.  The new rules will bring Norway into compliance with the 1993 European Union (EU) directives on money laundering.

II. Country Action Against Drugs in 1993

Norway is a member of a number of international drug control organizations, including the Pompidou Group and the Dublin Group.  The GON contributed $571,000 to the UNDCP in 1993.  Norwegian officials began negotiations for customs agreements with Poland, Estonia, Lithuania, Latvia and Turkey.

Agreements and Treaties.  Norway has signed, but not yet ratified the 1988 UN Convention.  Norway generally has met the Convention's goals and objectives on cultivation, distribution, sale, transport, and financing, and law enforcement transit cooperation, chemical controls, and demand reduction.  Norwegian officials expect the Parliament to ratify the Convention early in 1994, since the new money laundering regulations came into force on January 1, 1994.  Norway is a party to the 1961 Single Convention on Narcotics, as amended by the 1972 Protocol, and to the 1971 Convention on Psychotropic Substances.

It has a customs agreement with the USG, and an extradition treaty dating from 1977.  Norway has customs accords with Estonia, Latvia, and Lithuania.

Law Enforcement Efforts.  Norwegian authorities aggressively investigate and prosecute narcotics offenses.  The level of drug-related crime remained unchanged in 1993, with over 3,500 individuals prosecuted for drug offenses, about the same as in 1992.  Seizure statistics for 1993 are not yet available, but authorities believe they increased from 1992--when authorities seized 10 kgs of heroin, 2 kgs of cocaine, and 177 kgs of cannabis.  Norwegian law authorizes the seizure of assets, and the value of such seizures increased in recent years.  However, the law does not allow assets seized and prosecuted in Norway to be shared with other countries, although assets seized in Norway in connection with a foreign prosecution may be shared.

Corruption.  Corruption among Norwegian officials is not considered a problem.  Authorities have taken strong measures to prevent and punish any narcotics-related corruption.  The government does not as a matter of policy encourage or facilitate the illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  Senior officials neither engage in the production or distribution of drugs nor in the laundering of proceeds.  

Cultivation/Production.  There is no known cultivation or production of illicit drugs in Norway.

Drug Flow/Transit.  Cannabis products from Pakistan, Afghanistan, Lebanon and Morocco enter Norway by sea or land.  GON officials believe 70 percent of the heroin reaching Norway originates from Pakistan and Afghanistan, with the remainder coming from Southeast Asia.  According to police, Turkish traffickers smuggle most of the Pakistan/Afghanistan heroin into Norway overland via Istanbul, and through Eastern and Central Europe.  Cocaine enters Norway directly from South American source countries, or via Spain and Italy.

Demand Reduction Programs.  The GON emphasizes drug abuse prevention and rehabilitation.  Education on the dangers of substance abuse is compulsory in elementary and secondary schools.  Sports, social, religious and other organizations receive government subsidies to provide anti-drug information.  The government also provides extensive drug rehabilitation and medical programs. 

IV. US Policy Initiatives and Programs

Policy Initiatives.  The USG anticipates continued cooperation with Norwegian authorities in the interdiction and prosecution of drug smugglers.  In 1993, USG and GON authorities worked together to intercept an aircraft attempting to deliver amphetamines to Norway from the Netherlands.  Police arrested 13 suspects and seized 13 kgs of amphetamines in connection with the case. 

The Road Ahead.  The USG considers it essential that Norway ratify the 1988 UN Convention. The USG will encourage Norway, along with other West European countries, to expand their efforts to assist the antidrug efforts of the countries of the Newly Independent States of the former Soviet Union. 



POLAND

I.  Summary

Poland is playing an increasingly important role as a drug transit area, an amphetamine producer, and a drug consumer market.  Southeast and Southwest Asian heroin networks are expanding routes through Poland to smuggle heroin to Western Europe.  A record seizure of 517 kgs of cocaine in January 1994 pointed to South American traffickers' efforts to establish a foothold in Poland as a route to Western Europe.  Heroin smuggling routes from Russia to Poland also are emerging.

There are signs that drug abuse in Poland is increasing.  The possession of drugs for personal use is not illegal in Poland.  Polish narcotics control laws lack key enforcement provisions, complicating arrests and convictions for drug-related activities.  Limited manpower and resources have hampered the antidrug efforts of the Government of Poland (GOP). There has been little progress towards establishing a comprehensive anti-drug strategy.  

II.  Status of Country. 

Poland's financially troubled chemical industry and banking infrastructure, the expansion of its import/export businesses, its central European location, and its diverse population of 38 million people make it increasingly attractive to narcotics trafficking.  Myriad new smuggling routes have emerged into and through Poland.  Police reporting indicates that cocaine traffickers from Colombia, heroin and hashish traffickers from Southwest Asia and Russia, heroin and marijuana traffickers from Nigeria, as well as Polish traffickers of domestically produced opiates and amphetamines, are developing new transit and distribution routes.

Traffickers move drugs by many, including overland, routes from Russia, through the port of Gdansk, across the Polish/German border, and through the mail, principally from South America and Africa.  Police report that legitimate businesses and front companies are often used to smuggle drugs.  South American cocaine traffickers are using Poland's relaxed border controls to expand operations on the continent.  At Gdansk, authorities seized one-half metric ton of cocaine from Ecuador, as well as several other multi-hundred kgs shipments during 1993.

West European authorities are concerned about Poland's illicit  amphetamine industry, which is controlled by Polish criminal organizations.  GOP regulations are not adequate to prosecute those engaged in amphetamine production, and there are few controls on chemical exports.  

Most of the heroin and cocaine transiting Poland is destined for European markets.  Health officials attribute the escalating domestic drug abuse problem to increased availability.  Health officials estimated that the total number of drug users was 200,000 in as of early 1992. The most widely used drug is kompot, an injectable opiate made from a mixture of boiled poppy straw, which some experts believe produces an effect similar to heroin.  Polish authorities have noted an increase in the number of HIV-positive patients who contracted the illness through needle sharing.  

Banking officials suspect that drug money is laundered in Poland, but have no data on its extent.  Money laundering is not illegal in Poland.

II.  Country Action Against Drugs in 1993

Policy Initiatives.  The GOP has not formulated any long range drug control plans, but there are some signs of possible progress.  The Social Democratic Alliance and the Union of Labor are preparing to introduce antidrug legislation which would make the possession of drugs illegal and would create an antidrug agency.  A debate over drug possession penalties appears to have hampered this initiative.  Moreover, the Parliament recently defeated draft legislation authorizing undercover operations because of concern that such powers could be abused.  This legislation also included criminal penalties for economic crimes, such as money laundering.

Law Enforcement.  Current Polish laws limit law enforcement effectiveness.  Drug-related investigations are particularly difficult without provisions permitting controlled deliveries or paid informants.  Moreover, because possession for personal use of all narcotic drugs and psychotropic substances is legal, officials must apprehend the suspect in the act of smuggling or illicit production.  There is no lead agency for narcotics control.  The Polish Police, Justice Department, Customs, and Security Service share responsibility for drug enforcement, and operations are often unilateral.  Police officials give higher priority to fighting organized crime.  The recent increase in drug-related arrests is the result of information from foreign authorities, although one record seizure of 2.5 metric tons of hashish was discovered by accident.

Accomplishments.  The National Bank of Poland instituted a regulation that requires banks to record financial transactions over $10,000.  This will facilitate the tracing of laundered funds, although money laundering remains legal.  Also, the GOP passed legislation outlawing the production of several precursor chemicals used in amphetamine production.

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

Agreements and Treaties.  The GOP has signed, but not ratified, the 1988 UN Convention.  It is a party to the 1971 UN Convention, and to the 1961 Single Convention, but not its 1972 Protocol.  The GOP must modify its domestic laws before it can ratify the 1988 Convention.  The GOP is working with the UNDCP to identify the necessary legislative changes.  Effective implementation of the Convention will require stricter controls on narcotics trafficking and production, more effective law enforcement, and criminal penalties for money laundering and narcotics possession.

Cultivation and Production.  Polish police report continued amphetamine production, but do not know its extent.  There are  unconfirmed reports of opium poppy cultivated in Poland.  Polish laws are vague with regard to poppy cultivation.  Poppy farmers are required to register their licit fields, but there is no enforcement of this law.  GOP officials note that kompot is produced throughout Poland.  

Domestic Programs.  Demand reduction programs are understaffed, and resources are limited.  Poland has begun to receive antidrug aid from several West European countries and from the UNDCP.  

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG has urged greater GOP attention to the drug problem.  The USG will promote anti-drug cooperation with those nations in Western Europe most directly affected by heroin smuggling through Poland.  The USG is also encouraging the UNDCP to assist Poland's customs and police with detection equipment and training.  

The USG increased cooperation with Poland's anti-drug agencies in 1993, and provided INM-funded training assistance through DEA and US Customs.

The Road Ahead.  The USG will encourage the GOP to expand its drug control activities and to establish the legislative and institutional infrastructure necessary for an effective drug control campaign.  The USG also will encourage Poland to ratify and implement the 1988 UN Convention, and accede to the 1972 Protocol to the 1961 UN Single Convention.  The USG will urge the GOP to create a cadre of professional law enforcement officials focussed on the drug threat.  INM plans to provide law enforcement training and equipment to assist Poland's antidrug activities.  The USG, in collaboration with the Italian Government and the UNDCP, is supporting Poland's participation in an East European regional demand reduction program in Sicily.  



PORTUGAL

I. Summary

Portugal is a transit route for narcotics bound to Western Europe, including  cocaine from South America, heroin from Asia through Angola, Mozambique and Cape Verde, and hashish from Northern Africa, primarily Morocco.  Portuguese authorities are concerned by rising cocaine consumption.  The numbers of heroin addicts are also increasing, as are drug seizures and arrests.

The Judicial Police (PJ) actively pursues drug traffickers.  Authorities prosecute traffickers vigorously and cooperate fully with European and USG law enforcement agencies.  Further, the Government of Portugal (GOP) emphasizes demand reduction through education and treatment.  A new money laundering law, which conforms with the European Union's directive on money laundering and includes provisions for the seizure of assets of convicted narcotic traffickers, went into effect in 1993.

Portugal produces some chemicals used in the manufacture of illicit drugs, but diversion to drug traffickers is not considered a problem.

The GOP is active in several international drug control organizations, including the Dublin Group.  Lisbon was chosen by the European Council as the site of the new European Monitoring Center for Drugs and Drug Abuse, which is to become operational in mid-1994.  The GOP ratified the 1988 UN Convention in 1991.

II. Status of Country

Authorities estimate that there are approximately 50,000 drug addicts, mostly heroin abusers, and believe that drug use, including cocaine, is growing.  Hashish is still the most common illicit drug among young Portuguese.  The Attorney General estimates that 60 percent of crimes committed against property in Portugal's urban centers are connected to drug use.  There is a vigorous public debate on the legalization and decriminalization of drugs.

III. Country Actions Against Drugs in 1993

Policy Initiatives.  Portugal is active in the Dublin Group, and contributed to the UNDCP.  The GOP provides counternarcotics and law enforcement support and training for African countries with which it has historical and linguistic ties.  The European Council chose to base the new European Monitoring Center for Drugs and Drug Abuse in Portugal.  The Center will gather and analyze statistics and information provided by the European Union member states on drug abuse, and monitor national counternarcotics legislation and strategies.  The Center will begin operations in July 1994 with a budget of $ 6.25 million, and a staff of eighteen.

Accomplishments.  A new money laundering law went into effect in which conforms with the European Union's directive on money laundering, including provisions for the seizure of assets of convicted narcotic traffickers.  The GOP also adopted a comprehensive drug law that strengthens sentences for traffickers and money launderers.

Agreements and Treaties.  The GOP ratified the 1988 UN Convention in 1991, and is a party to the 1961 Single Convention and the 1971 Convention.  Portugal has complied with all the provisions of the UN Conventions.  The US, and Portugal have a long-standing extradition treaty.

Law Enforcement Efforts.  The GOP has responded vigorously to growing narcotics trafficking.  Law enforcement authorities are strong advocates of international cooperation, including the extradition of drug traffickers.  The PJ arrested 4,279 traffickers and users, and seized more than 166 kgs of cocaine and 86 kgs of heroin in 1993.  In addition, authorities seized more than 48 metric tons of hashish, and discovered 60 metric tons of hashish in containers off the coast of San Miguel island in the Azores.  Although military officials were successful in recovering only 22 metric tons of the captured drugs, this was the largest single drug seizure ever in Portugal.  A Brazilian national, sought by the DEA, was successfully extradited to the United States.

Drug Flow/Transit.  Portugal's location and its lengthy sea and land borders facilitate the transit of illicit drugs.  The lack of efficient border controls and, until recently, the absence of an effective money laundering law, made Portugal attractive to traffickers.  Portugal's close cultural, linguistic, and historic ties with Brazil and the former Portuguese colonies in Africa also attract traffickers from those countries.  Cocaine arrives by ship from Brazil and transits Portugal to the rest of Europe.  The African route (Angola, Mozambique and Cape Verde) is used as an alternative to the Balkans to move heroin from Pakistan and Southwest Asia to Western and Northern Europe.  Hashish enters by boat (usually fishing trawlers) from Morocco and is trucked to Spain and northern Europe.

Corruption.  The GOP does not encourage or facilitate the illicit production or the distribution of drugs or the laundering of drug money.  However, there are allegations of corruption at lower levels of the paramilitary police organizations, which are accused of aiding drug smuggling in Portugal.  Senior officials neither engage in production or distribution of drugs nor launder proceeds. The GOP indicated a strong position against corruption.

Demand Reduction Programs.  The GOP's National Drug Policy Council coordinates six ministries involved in demand reduction and treatment programs.  The programs emphasize drug abuse education, treatment and family support for drug abusers.

IV. US Policy Initiatives and Programs

Policy Initiatives.  US and Portuguese law enforcement authorities cooperate closely on narcotics related cases.  The USG sponsored the visit to Washington in 1993 of the chief of the judicial police  The USG also provided a money laundering expert who chaired a seminar for Portuguese banking and law enforcement officials.  DEA sponsored a money laundering training course for the police.

The Road Ahead.  The USG looks forward to continued good relations with the GOP, both bilaterally and in various multilateral fora.  The USG also anticipates the GOP's continued active participation in the Dublin Group and other international drug control organizations.



ROMANIA

I.  Status of Country. 

Drug trafficking is increasing through Romania to Western Europe.  The relaxation of border controls and the civil war in the former Yugoslavia prompted heroin traffickers to reroute heroin shipments northward through Romania.  Seizures and other statistics indicate that Romania is now frequently used to smuggle Southwest Asian heroin from Turkey through the Balkans into Germany.  There has also been increased heroin smuggling across the Black Sea on trucks ferried from Istanbul to Constanta, Romania. 

Most of these heroin smuggling operations appear to be dominated by well-established, Turkish-based drug trafficking organizations, but there has also been an increase in East European networks which include Romanians.  The National Police believe that the drug industry is expanding, and that Italian and Chinese crime organizations and South American cocaine traffickers are establishing connections in Romania.

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

II.  Country Action Against Drugs in 1993

Policy Initiatives and Law Enforcement.  Although drug control is not a high priority, the Government of Romania (GOR) has begun to draft a country-wide antidrug strategy.  The bulk of the effort is focussed on small-time interdiction operations.  As a result, the GOR has created antidrug departments in the National Police and Customs Service.  Efforts are hampered by a lack of resources and of sustained high-level commitment, which have prevented the emergence of a comprehensive drug control strategy.  Moreover, the GOR has not yet established controls to monitor financial transactions or the export of chemical shipments.

The GOR became a party to all of the UN drug Conventions in 1992, including the 1988 UN Convention.  It has increased antidrug cooperation with the US, and responded quickly and positively to a USG request to extradite an American citizen wanted on drug trafficking charges.

Corruption.  The GOR has had little success in addressing official corruption, which is alleged to be a serious problem.  Nevertheless, the USG is not aware of any reports of official narcotics-related corruption in Romania.

Agreements and Treaties.  On January 23, 1993, the GOR has become 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.  Compliance with the 1988 Convention will require stricter law enforcement, 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 opium poppy cultivation in Romania.

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG promotes increased GOR attention to the drug problem, and will encourage antidrug support for Romania by those Western European nations affected by heroin smuggling through Romania.  The USG also encourages the UNDCP to assist Romania's customs and police with detection equipment and training.  

The USG provided modest INM-funded assistance through the DEA and US Customs for Romanian law enforcement and customs officials to participate in a regional advanced drug enforcement school, and a seminar on precursor and essential chemical controls.  The GOR has cooperated in enforcement efforts with the extradition of two Americans to face charges for drug offenses.

The Road Ahead.  The USG will encourage the GOR to expand its drug control activities and to develop the necessary legislative and institutional infrastructure to conduct a sustained antidrug effort.  The USG will urge Romania to adhere to the obligations of the 1988 UN Convention, and to create a cadre of professional law enforcement officials to deal with the drug threat. The USG will provide limited law enforcement and demand reduction training and equipment.



RUSSIA

I.  Summary

Russia's drug problems grew in 1993.  The economic situation, a general lack of senior level coordination over narcotics matters, and the loosening of border security attracted drug smugglers seeking new routes from Asia to West European drug markets.  Drug seizures in the first ten months of 1993 were 50 percent above the total for 1992; the number of drug-related crime doubled and shows no sign of abating.  Authorities believe that drug abuse also is expanding at a dramatic rate, fueling a growing domestic drug market, the largest among the Newly Independent States (NIS) of the former Soviet Union. 

While resource constraints place clear limits on progress, the Government of Russia (GOR) is developing a comprehensive antidrug strategy.  Russia is making modest gains in bolstering its law enforcement efforts, and is drafting new drug control legislation.

Russia is a party to the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs (but not its 1972 Protocol), and the 1971 UN Convention; the GOR is taking steps to meet the goals and objectives of the 1988 UN Convention.  Moscow is also promoting implementation of the 1988 UN Convention by the other NIS.

II.  Country Status 

Drug traffickers are targeting Russia as a key market, as a conduit to Western drug markets, and as a producer.  The largest threat is from opium poppy grown in the Central Asia states, as well as from heroin from Iran, Pakistan, and Afghanistan.  Russian authorities report 1.5 million drug users, and are concerned that this number is rising.  Statistics follow the use of cannabis, opium poppy straw extract and heroin, but officials are also noting an emergence of cocaine use among affluent youth.

Drug trafficking through Russia is accelerating, and new drug smuggling routes are emerging.  Russian officials report seizing over 35 metric tons of hashish, opium, heroin, and cocaine in 1993, doubling the previous year totals.  Traffickers from Central Asia are taking advantage of lax border controls to expand their operations into Russia and to open new routes to Prague, Budapest and Bratislava, and Belarus.  Authorities seized over one metric tons of cocaine in St. Petersburg in January 1993, which demonstrates that Russia is not beyond the reach of South American traffickers.  

Officials noted an upsurge in Russian criminal gangs expanding into the drug trade; authorities believe that Russian and other criminal groups control most of the trafficking and distribution.  Most appear to operate locally, but many of the small criminal gangs located in the Central Asian and Transcaucasus states and Ukraine have formed links with Russian distributors in key Russian cities. 

Russia is emerging as a drug producer, although information on the extent of production is limited.  Russian authorities report the seizure of 215 illicit laboratories, including amphetamine laboratories.  Equipment has been stolen from government laboratories to set up small-scale local amphetamine operations.  Russia's chemical industry exports small quantities of precursor and essential chemicals, primarily acetic anhydride, to Eastern Europe and Finland.  Russian officials report that wild and cultivated opium poppy and marijuana production continues.

Drug money laundering is a growing problem.  The lack of regulatory controls or legislation limits government efforts to target laundering operations.  A Central Bank official acknowledged that criminals have taken control of some banks and are laundering proceeds from a wide  variety of criminal activities, including drug sales.  Moreover, a series of 37 contract murders of bankers and businessmen in 1993 alarmed Russia's financial community.

II. Country Action Against Drugs in 1993

Policy Initiatives.  The GOR, concerned about the drug problem, designed a two-year $65 million antidrug program which is to begin in 1994.  It will establish an inter-service commission, including 24 government entities to target drug-related crimes.  The program will emphasize interdiction, but will also include crop eradication, and basic drug prevention and treatment programs.  It is expected to have an international component promoting drug control cooperation among the NIS and with the West.  

The President's office is reviewing legislation, drafted by the Ministry of Interior (MVD), to repeal current law permitting the possession of drugs for personal use.  The government still needs to institute controls to monitor precursor and essential chemicals and financial transactions.  

Law Enforcement Efforts.  The GOR is bolstering law enforcement, and recently increased the number of counterdrug officers from 1,000 to over 3,000.  One result of this increase was a doubling of drug cases.  The regional drug law enforcement school in Belgorod enrolled 150 students in 1993.  Moscow is pursuing a regional response to the drug threat and is increasing cooperation with other states of the former Soviet Union.

Cultivation and Production.  Moscow retains the USSR's ban on opium poppy and cannabis cultivation.  Authorities believe that opium poppy is produced in southern Russia both for cooking purposes and for the production of illicit opium poppy straw.  A small amount of opium poppy is grown legally for agricultural and scientific research.

Corruption.  In 1992 President Yeltsin issued a decree aimed at curbing corruption; he has taken a number of steps against government corruption.  The USG has no reports of high-level government 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, but not its 1972 Protocol, and to the 1971 Convention on Psychotropic Substances.  The GOR is drafting a new penal code which is expected take the UN Conventions into account.  However, to fully implement the 1988 Convention, the government will need stricter controls on trafficking and production, more effective law enforcement, and the imposition of criminal penalties for narcotics possession.

Domestic programs.  The Moscow City Council supports school-based drug prevention programs.  A number of private organizations are now sponsoring demand reduction programs throughout Russia.  

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG continues its counternarcotics dialogue with Russia, especially to identify existing problems, possible areas for assistance, and steps needed to fully implement the UN Conventions.  INM funded a number of training courses in Moscow, including a regional law enforcement program for the NIS, and a money laundering conference.  Additionally, the USG funded Russian participation in a regional US Customs course, regional asset forfeiture training, and an international chemical control conference.  The USG also encouraged Western European nations which are most directly effected by drug smuggling through Russia to take a more active rule 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 framework to pursue effective narcotics control.  The USG plans to contribute $500,000 to the NIS, including Russia, through the UNDCP, as well as bilaterally, for enforcement training.



SLOVAKIA

I.  Summary

There appears to be less drug trafficking through the Slovak Republic (Slovakia) than though its neighbors, but Slovak authorities believe that drug traffickers are using the country to smuggle some Southwest Asian heroin to Western European markets.  Trafficking groups which once targeted the former Czech and Slovak Federal Republic (CSFR) appear poised to expand domestic Slovak drug markets and to recruit couriers.  The USG, however, has little information on the extent of the Slovak drug problem.  West European authorities report seizures of amphetamines that they believe originated in the Slovak Republic.  

The division of the CSFR in 1992 diverted high-level attention to issues other than illicit drugs.  Nevertheless, authorities carried out some drug interdiction operations in 1993, and the government drafted new criminal legislation which includes antidrug measures.  The Slovak Republic has inherited all treaty and other international obligations of the former CSFR, including those of the 1988 UN Convention.

II.  Status of Country.

While most information on the current drug situation is anecdotal or from press reports, officials also report that the Slovak Republic is increasingly vulnerable to the drug trade.  Initially, the relaxation of border controls and the search for routes around the former Yugoslavia prompted Turkish and other heroin traffickers to look to the former CSFR as an alternate route for smuggling heroin to the West.  The Slovak Republic Central Drugs Service reports that drugs are entering across southern borders and across the border with Ukraine.  Slovak officials believe that South American cocaine traffickers, who are already active in the Czech Republic, may have begun smuggling operations in the Slovak Republic as well.  DEA reports that Slovak authorities seized two kgs of cocaine destined for Canada in 1993. 

The collapse of totalitarian rule in 1989 also prompted a relaxation of controls on chemicals used in the manufacture of illicit drugs.  Draft crime legislation currently under review will include provisions for chemical controls, but no interim measures are in place.  Slovak authorities are concerned that the well-developed Slovak chemical and pharmaceutical industry could be sold to international drug networks and used to produce illegal narcotics or precursor chemicals.  These officials report that the Ministry of Finance and Ministry for Privatization oppose legislation designed to place controls on the ownership and operation of chemical plants.

Health authorities believe that drug abuse may be increasing, but few statistics are available.  UNDCP officials who traveled to Bratislava in May noted an increase in heroin overdose emergencies in the Slovak Republic.  There is concern that the increased drug trade may also prompt a concomitant domestic drug problem, as it has in the Czech Republic.

III.  Country Action Against Drugs in 1993

Policy Initiatives.  Although antidrug efforts were not a high priority, the Government of the Slovak Republic (GOSR) did take a number of steps to improve its antidrug institutions.  For instance, the GOSR established a high-level drug commission, chaired by Deputy Prime Minister Roman Kovac, to oversee antidrug efforts.  The GOSR also drafted a law on organized crime, which is expected to be approved by Parliament in 1994.  The legislation includes provisions against drug trafficking, money laundering, and chemical diversion.

Law Enforcement.  The Slovak police set up the Central Drug Service (CDS), a special drug unit to coordinate police anti-drug activities.  During 1993, the CDS arrested and convicted 38 people for drug related offenses.  The unit's operations continue to be hampered by ineffective antidrug legislation.  The CDS established law enforcement contacts with the UK, Germany, Italy and the United States.  The CDS is planning an expansion of its analytical and investigative capabilities.  UNDCP plans to provide $670,000 in equipment for the police and customs service and forensic laboratory equipment.  The EC will assist primarily with training and technical assistance to adapt Slovak drug control legislation to EC standards.  

Corruption.  The USG is unaware of any reports of official narcotics-related corruption in the Slovak Republic.  Although no cases have been reported, Slovak law enforcement circles fear that officials in the Ministries of Finance or Privatization may be willing to turn a blind eye to investments by criminal organizations in the Slovak Republic's pharmaceutical or chemical industries.  

Agreements and Treaties.  The Slovak Republic has stated its intention to honor all obligations and treaty commitments of the former Czech and Slovak Federal Republic, including those of the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs, the 1972 Protocol thereto, and the 1971 UN Convention on Psychotropic Substances.  The extradition treaty between Czechoslovakia and the US has continued in force in the Slovak Republic and has, in effect, been updated to encompass drug-related offenses by virtue of the Slovak Republic's succession to the UN Conventions. 

Cultivation and Production.  Slovak authorities report that amphetamine production is extensive, but the information is anecdotal.  There are some indications of possible opium poppy or cannabis cultivation.  

Domestic Programs.  The Slovak Republic's demand reduction effort is limited to several treatment beds in a Bratislava hospital.  The US and Italian governments, together with the UNDCP, are funding the GOSR's participation in a regional demand reduction program in Sicily.  

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG is promoting increased GOSR attention to the drug problem, and is encouraging antidrug support from Western European nations most directly threatened by the potential for trafficking through the Slovak Republic.  The USG contributed some assistance, through the UNDCP, to provide Slovak Customs and the CDS with detection equipment and training.  In 1993 the USG established a cooperative relationship with the GOSR's antidrug agencies, and provided some training through DEA and US Customs.  

The Road Ahead.  The US will encourage Bratislava to focus on the potential threat of a growing drug problems, expand its drug control activities, and establish the necessary legislative and institutional framework to deal with the challenge.  The USG also will urge the new republic to ensure that domestic legislation permits the full implementation of the 1988 UN Convention.  The bulk of American antidrug assistance will be provided through UNDCP, although INM will offer limited law enforcement training and equipment to assist the government in its antidrug campaign.    



SPAIN
I. Summary 

Spain is a major transit route for South American cocaine destined to Europe, accounting for an estimated 75 percent of the cocaine traffic to the region.  Cocaine and heroin seizures were up for the first 10 months of 1993.  Heroin remains the primary drug of abuse in Spain, but cocaine use is growing, as is public concern about illicit drugs.  Spanish authorities also are concerned about an increase in the availability and consumption of the designer drug "ecstasy."

The Government of Spain (GOS) traditionally has emphasized demand reduction and rehabilitation over law enforcement and criminal prosecution.  And, while Spain ratified the 1988 UN Convention in 1990, Spanish law does not penalize personal possession or use of small amounts of drugs.  The Spanish Parliament passed new money laundering legislation in December.

II.  Status of Country

As an important transit country for cocaine from South America, Spanish authorities believe cocaine use is increasing, while heroin use, which traditionally has been the greater drug abuse problem, appears to be declining.  The GOS does not compile statistics on drug use, but a study conducted by the Spanish Heart Association reported that there were 640,000 regular users of cocaine in Spain, and that some four million Spaniards had tried cocaine at least once.

The sale and trafficking of illicit drugs is a criminal offense in Spain, but the possession and consumption of small amounts of narcotics for personal use are subject only to administrative penalties, such as fines.

Spanish law enforcement authorities believe money laundering is a major problem.  They estimate that $230 million in drug money was laundered in Spain between 1991 and 1993.  The legislature enacted new laws to combat drug money laundering in December.

Spain does not divert significant amounts of precursor and essential chemicals.  Spanish chemical control laws are in accordance with the 1993 European Union directive on chemical exports, and with the 1988 UN Convention.

III.  Spanish Actions Against Drugs in 1993

Policy Initiatives.  The Spanish Drug Plan Office (PNSD), in  cooperation with UNDCP, hosted the "First International Conference on Drugs in the Workplace" in Seville in October.  Private and public sector representatives discussed ways the private sector could assist international drug control efforts.  Spain actively participates in various international counternarcotics fora including the Dublin Group.  It provided approximately $650,000 in 1992 to the UNDCP.

Agreements and Treaties.  Spain ratified the 1988 UN Convention in 1990 and is generally meeting its goals and objectives.  Spain ratified the Mutual Legal Assistance Treaty with the US in 1992 which contains provisions to assist in narcotics related investigations. 

Accomplishments.  The Spanish Parliament passed the special money laundering legislation in December which includes provisions for administrative penalties for bankers who fail to report suspicious transactions, and requires banks and other financial institutions to report the identity of customers engaging in large currency transactions.  Spanish law also provides for seizure of assets related to illicit drug activities.

Law Enforcement Efforts.  In the first 10 months of the year, authorities made 25,000 arrests for narcotics-related violations.  They seized over 4,900 kgs of cocaine, 672 kgs of heroin, and 250,000 ecstasy pills, an increase over 1992.  Confiscation statistics have not yet been compiled for 1993, but in 1992, authorities seized approximately $11 million in drug-related proceeds, 947 vehicles, and 27 boats and yachts.

Corruption.  Corruption among Spanish public officials is not a problem.  The Spanish government does not as a matter of policy encourage or facilitate the illicit production or distribution of drugs or other controlled substances or the laundering of drug money.  While two high ranking officials in the Guardia Civil anti-drug unit were disciplined for paying informants with confiscated narcotics in 1992, senior GOS officials do not normally engage in production or distribution of drugs or launder drug proceeds.

Cultivation/Production.  There is no reported cultivation or production of illegal drugs in Spain, although authorities found a few small drug processing laboratories in 1992.

Drug Flow/Transit.  DEA estimates that 75 percent of all cocaine destined for Europe transits Spain.  Most arrives via the Galician coast in Northwestern  Spain.  Spain is also a major transit country for hashish from North Africa and destined for other European countries.

Demand Reduction.  Spain emphasizes prevention and rehabilitation in coordination with interdiction and prosecution.  The Spanish Drug Plan Office (PNSD) coordinates Spanish demand reduction efforts, such as drug abuse educational programs, in cooperation with several voluntary organizations (NGO's).  

IV.  US Policy Initiatives and Programs

Policy Initiative.  The USG cooperates closely with Spanish law enforcement officials, and offers GOS-funded law enforcement training opportunities to Spanish authorities.  The DEA plans to host a two-day money laundering seminar for Spanish counternarcotics officials and Spanish financial institution representatives in early 1994. 

 
Under the US/Spain Demand Reduction Agreement, the USG will encourage bilateral exchanges of policy level and scientific delegations to improve demand reduction programs and identify more effective treatment methods.  A delegation of senior Spanish Government demand reduction officials visited the US in October to learn more about American counternarcotics legislation, demand reduction programs, and law enforcement practices.

The Road Ahead.  The USG looks to expanding existing bilateral antidrug efforts and identifying new areas of cooperation with the GOS, including encouraging Spain to take a more active role in support of counternarcotics efforts in Latin America.



SWEDEN

I. Summary 

Sweden is not a significant drug producer or a major drug transit country, or a money laundering center; however, Swedish authorities are concerned about increasing amounts of heroin brought to Sweden through Russia and the Baltics.

Amphetamines and cannabis/hashish are the primary drugs abused, although heroin and cocaine are available.  Swedish officials believe drug use by young Swedes may have stabilized.  The Government of Sweden (GOS) emphasizes drug abuse prevention and subsidizes private initiatives to distribute information on the dangers of alcohol, narcotics, and tobacco use. 

The diversion of chemicals used to manufacture illicit drugs, and money laundering are not considered serious problems in Sweden.  Sweden has a number of laws to deter both chemical diversion and money laundering.

Sweden is active in international drug control organizations, including the UNDCP and the Dublin Group.  Cooperation is excellent with USG law enforcement agencies.  Sweden ratified the 1988 UN Convention in 1991.

II. Status of Country

Swedish authorities believe amphetamines and cannabis are the drugs most often abused, but cocaine and heroin are used to a lesser extent.  GOS officials believe the number of drug users may have leveled.  A study published in October showed that the number of drug abusers had increased from 10,000-14,000 in 1979 to 14-20,000 in 1992, but that the number of heavy drug users below the age of 25 decreased from 37 percent to 10 percent of the total user population.  A 1992 poll among conscripts in the Swedish military showed that 5 percent said they had tried illicit drugs at least once; this was down sharply from the 1980 survey when 19 percent admitted having tried drugs.

GOS authorities believe precursor and essential chemical diversion is not a problem.  Sweden participates in a monitoring program for imports and exports of chemicals used to manufacture illicit drugs as part of a Nordic initiative among police and customs authorities.  Sweden passed legislation in 1993 to bring its laws on chemical exports in line with the European Union's (EU) directive on chemical control.

Sweden is not a significant drug-money laundering center.  The Swedish Parliament amended Sweden's laws in 1991 making money laundering a crime and requiring that large currency transactions be registered with the central bank.  Swedish laws permit seizure of assets, including vehicles used to transport narcotics, property, real estate, and banks accounts. 

III.  Country Actions Against Drugs in 1993

Policy Initiatives.  Sweden is active in a number of international antidrug fora and is the second largest donor to the UNDCP, contributing about $6.8 million.  Sweden also participates in the Dublin Group, the Pompidou Group and the UN Commission on Narcotic Drugs.  Swedish law enforcement authorities have developed cooperative relationships with authorities in several of the Baltic countries to help stem the flow of drugs from those countries to Sweden.  Swedish Customs offer drug control training to the Baltic customs organizations.  The GOS also is assisting Eastern European countries to develop regional intelligence centers to detect drug trafficking.

Accomplishments.  A new law went into force permitting police to take urine samples to prove drug use, and enabling judges to sentence users to drug treatment.  Previously, police and judges could not use such tests as evidence of drug use, and were restricted to imposing only fines akin to parking tickets for narcotics use.  The GOS also passed new legislation on the control of precursor and essential chemicals to bring them into line with the EU directives on chemical controls; Sweden was obligated to adopt the EC standards in order to participate in the European Economic Area.

Agreements and Treaties.  Sweden ratified the 1988 UN Convention in 1991.  Sweden is generally meeting the goals and objectives of the Convention.  Sweden is also a party to the 1961 Single Convention on Narcotics, its 1972 Protocol, and to the 1971 Convention on Psychotropic Substances.  The GOS has a customs cooperative agreement, and an extradition treaty with the USG.

Law Enforcement Efforts.  Law enforcement forces are efficient and effective in Sweden.  In the first 10 months of 1993 Swedish authorities seized 365 kgs of cannabis (440 kgs in 1992), 24 kgs of heroin (16 kgs in 1992) and 60 kgs of cocaine (8 kgs in 1992). 

Corruption.  Public corruption is not a problem in Sweden.  The GOS does not as a matter of government policy encourage or facilitate illicit production or distribution of illicit drugs or  the laundering of drug money.  Sweden has effective laws in place to serve as a deterrent against corruption.  Senior officials neither engage in the production or distribution of drugs nor launder proceeds.

Drug flow/Transit.  Sweden remains a destination country for illicit drugs from Poland, Denmark, Finland and the Baltic nations.  Swedish officials believe approximately 35 percent of the amphetamines entering Sweden originate in Poland. 

South American cocaine, destined for Sweden, is generally smuggled through Africa, by couriers or through the mail.  Larger quantities arrive directly from South America by ship in containerized cargo.  To combat this form of smuggling, Customs officials requested a specially designed "Intensive Container Examination" training program, conducted by US Customs.  Drugs are distributed mainly in the three largest cities of Stockholm, Gothenburg and Malmo, where they are sold to dealers from smaller cities.  Few of the drugs entering Sweden are shipped onward to other countries.

Demand Reduction Programs.  The Swedish Government emphasizes drug abuse prevention, combined with a restrictive drug policy, enforcement measures, and drug rehabilitation.  Information on the dangers of alcohol, narcotics, and tobacco are distributed in all elementary and secondary schools.  Political, religious, sports and other organizations receive government subsidies to develop information and activity programs.  Various private organizations are also active in drug abuse prevention and public information programs.  The publicly-owned radio and television networks present programs on the dangers of drug abuse, and teachers' colleges provide training on the dangers of alcohol, tobacco and drug abuse.

IV. US Policy Initiatives and Programs

Policy Initiatives.  Swedish law enforcement officials cooperate with USG law enforcement agencies by sharing information on illicit drug shipments, and by extraditing drug traffickers sought by the US

The Road Ahead.  The USG anticipates continued close cooperation between US and Swedish enforcement officials.  The USG will encourage the GOS to continue supporting UNDCP efforts and to assist the Newly Independent States of the former Soviet Union in antidrug efforts.  The US also will work with Sweden in the Dublin Group. 



SWITZERLAND

I.  Summary 

Switzerland does not produce illicit narcotics, but considerable amounts enter the country.  Most of the drug trade is controlled by non-Swiss traffickers.  Drug abuse is a problem in some major cities, but the number of drug-related deaths declined for the first time in 1993.  

Switzerland produces some precursor and essential chemicals, but diversion is not considered a problem.  As a major international financial center, Switzerland is used by traffickers for money laundering.  The Government of Switzerland (GOS) has anti-money laundering laws and has implemented a number of enforcement measures. 

Cantonal governments have autonomy on various aspects of narcotics policy, within Switzerland's Federal structure.  French-speaking cantons take a tougher line against addicts than do officials in German-speaking cantons.  Switzerland signed, but is not a party to, the 1988 UN Convention, primarily because of a lack of national consensus on punishing narcotics users.

II.  Status of Country

The GOS does not compile national statistics on drug use, but  authorities believe narcotics consumption is a problem in some major cities.  Heroin abuse is the greatest concern, but authorities believe there is some cocaine abuse as well.  However, the number of drug-related deaths stabilized in 1992 and even declined slightly during the first six months of 1993.

The federal system accords substantial autonomy to regional cantonal and city governments in law enforcement and drug policy matters, leading to varying degrees of tolerance for drug use and different enforcement practices among the country's cantons and city governments.  The French-speaking cantons have adopted tough anti-narcotics policies, but several German-speaking cantons experimented, until 1992, with more permissive policies.  However, due to public complaints, the authorities revised their position; only the city of Zurich still tolerates open drug use.

International traffickers take advantage of privacy provisions of Switzerland's banking legislation to engage in money laundering, but new legislation and greater diligence by financial institutions is reducing this activity.  Switzerland ratified the Council of Europe's convention on money laundering and the confiscation of criminal assets in 1993.  Switzerland is also a member of the Financial Action Task Force (FATF).

Switzerland produces several precursor and essential chemicals, but diversion is not considered a problem.  The government has had a voluntary chemical control system in place since 1991.  A national task force is drafting legislation based on the Chemical Action Task Force recommendations on the control of precursor and essential chemicals, which will be completed in 1994.

III.  Country Actions Against Drugs in 1993

The Swiss Parliament reviewed tougher measures to fight organized crime, improvements in asset forfeiture laws, and the issue of reporting suspicious financial transactions.  Swiss law now only imposes criminal penalties on well-defined activities.  The changes in the law will facilitate the confiscation of illicitly acquired assets, since this would be authorized without the necessity of establishing a direct linkage between an asset and a specific crime.  The revised penal code also will allow bank employees to report suspicious transactions without fear of violating bank secrecy regulations.  The upper house of Parliament approved these measures in December, but they will not become law until approved by the lower house in 1994.

Agreements and Treaties.  Switzerland has signed, but is not a party to, the 1988 UN Convention.  The government must first resolve the issue of public opposition to mandatory punishment of narcotics users, and put in place mandatory controls for precursor and essential chemicals in order to fully meet the Convention's goals and objectives.  Switzerland is a party to the 1961 Single Convention, and its 1972 Protocol.  The USG and the GOS have a Mutual Legal Assistance Treaty (MLAT) concluded in 1977, and an active extradition treaty dating from 1900.

Law Enforcement Efforts.  Swiss law enforcement authorities are efficient and effective.  In the first half of 1993, GOS law enforcement authorities seized 113 kgs of cocaine, 60 kgs of heroin, and 645 kgs of marijuana.

Corruption.  Corruption is infrequent among drug enforcement personnel.  The GOS does not as a matter of policy or practice encourage or facilitate the illicit production or distribution of drugs or other controlled substances or the laundering of drug money.  Senior officials neither engage in production or distribution of drugs, nor launder drug proceeds.

Drug Flow/Transit.  Switzerland is a major connecting point for flights from Asia, the Middle East, and Africa, and attracts drug traffickers from those regions.  Most of the heroin transits Switzerland to other European countries, although some drugs remain in Switzerland for domestic consumption.  Swiss law enforcement officials believe that Kosovar Albanians are involved in most of the domestic heroin distribution in Switzerland. 

Cultivation/Production.  Small quantities of cannabis are cultivated for personal use; authorities seized 232 marijuana plants in first six months of the year.

Demand Reduction Programs.  The GOS condemns the use of narcotics.  It seeks to reduce drug consumption with a strategy of prevention, enforcement, and social assistance.  The federal and cantonal governments devote significant efforts to preventing drug abuses through information campaigns and the training of social assistance workers.  In June 1993, the Federal Council (cabinet) approved 14 pilot projects to distribute narcotics to addicts under medical control.  The first project started in December in Zurich, and will provide up to 150 addicted women with daily doses of morphine, methadone, or heroin.  All the projects are located almost exclusively in German-speaking cities, and will last until 1996.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  US and Swiss enforcement authorities cooperate closely.  The US-Swiss asset sharing agreement, along with the bilateral MLAT, provide a solid legal framework for drug control cooperation.  The two countries are also broadening cooperation with exchanges about antidrug activities through organizations such as the UNDCP and the FATF.

The Road Ahead.  The USG looks toward good law enforcement cooperation from the Swiss authorities.  The USG will press Switzerland to become a party to the 1988 UN Convention, and to provide greater support to the UNDCP.



TURKEY

I.  Summary

Turkey, a natural route for Southwest Asian heroin destined for Europe and America, faces a rising tide of narcotics trafficking.  Almost three-quarters of all drug seizures and arrests in Europe involve Turkish traffickers and narcotics coming through Turkey.  The Turkish government is working aggressively to curb the drug trade.  Turkey cooperates very closely with the United States.  In cooperation with the DEA, Turkish authorities seized 2.75 metric tons of morphine base and 13.5 metric tons of hashish aboard a Turkish merchant ship, the Lucky S, in January 1993.  USG assistance focuses on enhancing Turkey's investigation and interdiction efforts with training and equipment.  The US urges Turkey to ratify the 1988 UN Convention, and to enact accompanying laws on money-laundering, asset seizure, and controlled transfer.

II.  Status of Country

Turkey's primary narcotics problem is the production and trafficking in heroin, and the transit of hashish through the country.  Thousands of trucks cross Turkey each year, providing enabling traffickers to easily movie drugs from Asia to Europe and the United States.  There has been greater use of air and sea routes as the conflict in the former Yugoslavia disrupted traditional overland routes through the Balkans.  Seizures confirm that drug traffickers process morphine base and heroin base into heroin in Turkey.  Laboratories used to convert imported morphine base into heroin have surfaced in remote regions of southeastern Turkey, as well as in the Marmara region near Istanbul.  Major Turkish, Iranian and other international trafficking organizations operate from Istanbul, where they maintain contacts in Pakistan, Afghanistan, Iran and eastern Turkey, as well as in Europe, and North America.

For centuries, opium poppy has been cultivated in Anatolia for medicinal purposes.  Turkey is one of the traditional opium poppy growing countries that the USG recognizes for licit poppy cultivation.  The GOT permits poppy cultivation in a limited number of provinces, using the Concentrate of Poppy Straw (CPS) production method for the production of morphine for the international pharmaceutical market.  The GOT effectively controls the licit cultivation and production of opiates.  There is no significant leakage from licit cultivation because the government pays high prices for the poppy straw, levies heavy penalties for using the old incision method of collecting opium gum, and carefully monitors the growing areas.  The Bolvadin alkaloid plant, the government's CPS production facility, is the largest of its kind in the world.

Turkey has no legislation prohibiting money laundering.  Given the volume of trafficking, however, it is highly likely that some drug  profits return to Turkey, where they are invested in legitimate businesses.  Without laws against money laundering, it is virtually impossible to track these inflows or 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.  Recently, however, the government signaled its resolve to move the 1988 UN Convention to Parliament for ratification, with accompanying laws to deal with drug money laundering.

III.  Country Action Against Drugs in 1993

Policy Initiatives.  The government is drawing up a comprehensive narcotics strategy "Master Plan," sought by the USG to improve drug control coordination with other donors.  

Although Turkey has not ratified the 1988 UN Convention, reports that PKK separatists fighting for a Kurdish state in southeast Turkey use drugs to help finance their insurgency, are pushing the GOT toward ratification.  Two bills should be enacted in 1994 to move the process forward.  The first calls for ratification of the Convention, with its text attached.  The second proposes new laws in four areas in which the Convention requires action.  Once the Convention is ratified, Turkish law will have been altered to achieve the following:

--  Money-laundering:  For the first time, money-laundering will become a crime.  The bill also creates a new "Financial Investigations Bureau" within the office of the Prime Minister.

--  Asset-seizure:  Existing laws are strengthened to bring them into line with the 1988 Convention.

--  Chemical Precursors:  Existing law covers only acetic anhydride (AA).  The new law would create controls over both importation and domestic use of all chemicals listed in the 1988 Convention annex.

--  Controlled delivery:  The new law would allow narcotics transiting Turkey to be delivered to their designations abroad so that investigations could identify major traffickers in the consuming countries.  Heretofore, narcotics transiting Turkey have almost always been confiscated immediately upon discovery.

Accomplishments.  Despite the magnitude of the drug trafficking problem in Turkey (DEA estimates between three and five metric tons of heroin and morphine base transit Turkey each month on the way to Western markets) US-Turkish cooperation has yielded impressive results, including the "Lucky S" seizure mentioned above.  The police also made several significant seizures during 1993.  During the first 11 months of the year, they seized 1,966 kgs of heroin and 2,902 kgs of morphine base.  

Law Enforcement Efforts.  Turkish enforcement agencies cooperate closely with the US and other countries, aggressively pursue drug investigations, and prosecute traffickers.  The principal law  enforcement agencies are the Turkish National Police and the Jandarma (rural police).  Turkish Customs, which turns narcotics matters over to the police, historically has lacked a professionally trained cadre of narcotics interdiction agents.  With the help of DEA and US Customs Service training, however, the Undersecretariat of Customs is seeking to create such a cadre.  The Turkish Coast Guard is also playing a larger role in interdiction.

Despite the efforts of Turkish authorities, the USG estimates that very little of the heroin passing through Turkey is seized because of manpower shortages.  There are only approximately 130 narcotics officers in Istanbul, a major drug transit center with a population of over 10 million.  Nation-wide, however, there are over 1,000 narcotics law enforcement specialists.

Corruption.  The Turkish Government strongly punishes public corruption, especially by senior government officials, in all areas of public service, including the police and customs.  As a matter of policy, the government does not encourage or facilitate the illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  The USG is unaware of any senior official engaging in production, distribution of drugs, or money laundering of proceeds. 

There are, however, allegations of corruption at lower levels of the criminal justice system.  While senior law enforcement and most other government officials fully cooperate on narcotics interdiction efforts, drug investigations have been compromised at the investigative level, and there are problems of corruption once apprehended traffickers enter the judicial system.

Agreements and Treaties.  Turkey has signed several bilateral agreements for narcotics interdiction.  Denmark, Spain, Italy, the UK, Austria and Germany, as well as the US, have resident police liaison officers in Turkey.  The USG and the GOT signed a treaty on extradition and mutual assistance in criminal matters in 1979 (in force since 1981) and a Narcotics Assistance Protocol in 1980.  In 1993, the US requested the extradition of a suspected majortrafficker; it is pending.  Turkey is a 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.  As noted, it has signed but not yet ratified the 1988 UN Convention.

Domestic Programs.  The GOT considers local drug consumption and abuse to be a minor problem, since Turkey traditionally has not had major substance abuse problems.  Drug abuse, however, is growing in Istanbul; several deaths from heroin abuse were reported.  There are also indications that cocaine abuse among the more affluent populace is on the rise.  A 37 percent increase in cocaine seizures between 1992 and  
1993 suggests that cocaine availability is growing.  Staff at the Istanbul Research and Treatment Center for Alcohol and Substance Addiction (AMATEM) predict that Turkey will face a major addiction problem in the future unless it institutes effective demand reduction programs.  The GOT emphasizes the role of education in preventing drug abuse, especially among the young.

IV.  U.S. Policy Initiatives and Programs

US Policy Initiatives.  The USG is urging the government to
ratify the 1988 UN Convention, with accompanying laws on money-laundering, asset seizure, chemical regulation, and controlled transfer.  It also would like Turkey to chair a periodic policy-level meeting in Ankara to strengthen coordination between bilateral donors, the UNDCP, and the GOT on interdiction strategy, assistance packages, and identification of new trafficking trends.  The USG hopes Turkey will play a greater regional role in coordinating interdiction and training efforts with the Newly Independent States.

Bilateral Cooperation.  The US and Turkey cooperate closely against narcotics trafficking. The USG focuses its assistance on support for national police operations and intelligence gathering activities which account for 95 percent of seizures.

In 1994, the USG will inaugurate a new program to improve Turkish interdiction at its primary customs crossings in Bulgaria, Iran, Iraq, Syria, and Georgia. The USG also provides assistance to strengthen the interdiction capabilities of the Customs Undersecretariat.  DEA and US Customs provided training in 1993 to help the Undersecretariat create a new cadre of officers with narcotics interdictions skills.  The USG also provided training and facilities for an integrated interdiction unit at the Istanbul International Airport.  An August, 1993, seminar with USG experts provided technical assistance for the preparation of new anti-money laundering laws.

The Road Ahead.  There is considerable concern about Turkey's apparent inability to market the CPS/morphine which it produces from licit cultivation.  This has resulted in a substantial inventory of unsold morphine, which, although tightly secured, continues to grow each year, and presenting a potential diversion problem.  The USG believes that despite the efforts of the GOT, very little of the illicit heroin passing through Turkey is detected and seized, and hopes for greater success in 1994.  The USG welcomes evidence that the 1988 UN Convention, together with enacting legislation, will soon move to the Parliament for consideration

[Charts:  Statistical Tables; Turkish Heroin Seizures 1989-1993]



UKRAINE

I.  Summary

Drug traffickers appear to be stepping up efforts to target Ukraine as a transit area and as a producer of illicit opium poppy straw, and possibly as a site to launder drug profits.  Government officials indicate that the severity of the drug problem is further demonstrated by a 33 percent increase in drug seizures in 1993.  Moreover, although official estimates of the number of consumers are low, Ukrainian authorities believe drug abuse is emerging as a serious problem.  According to the DEA, some licit opium poppy cultivation occurs in the Ukraine, but the Government of Ukraine (GOU) has been reducing amounts of licit poppy.  Ukrainian security services continue to expand their counternarcotics capacities even as they seek additional advice and training from abroad.  

Ukraine is a party to the UN drug Conventions, including the 1988 UN Convention.  Efforts are underway to change domestic legislation in order to implement the 1988 UN Convention.  Possession of small quantities of drugs for personal use is legal in Ukraine and the (GOU) will need to change this, and take additional counternaroctics actions, in order to meet fully the goals and objectives of the 1988 UN Convention.  

II.  Status of Country

Drug trafficking networks are stepping up efforts to exploit Ukraine's location and traditional role as an opium poppy producer.  Ukraine was once a source of licit poppy straw for the USSR and, while most poppy cultivation was outlawed in 1987, authorities note that the extensive use of the poppy for cooking makes it difficult to enforce the law.  Moreover, authorities continue to discover illicit cultivation.  Ukrainian authorities also indicate increased discoveries of amphetamine processing laboratories.  

Authorities believe that small, organized gangs control most of the domestic drug activities in Ukraine.  One Ukrainian 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 Transcaucus states.

Drug smugglers are also using Ukraine as a conduit for drugs from Central Asia and Afghanistan destined for Western Europe.  In the first half of 1993, Ukrainian authorities seized over 6 tons of  illicit drugs, including hashish, opium poppy straw, and amphetamines, compared to less that 25 kilograms in 1991.  In 1993 illicit drug cargoes transiting Ukraine were seized in Belarus, Germany, Sweden, and the Netherlands.

Increased drug problems in Ukraine have led to expanded drug use, particularly of injectible opium poppy straw extract.  The Health Ministry reports over 54,000 narcotics addicts, but a treatment expert from the region recently indicated the number could be more than four times higher, and border troops estimate that the number could be as high as 400,000.  Other officials have stated that one of every two university students in Ukraine has used drugs.

Ukrainian officials are concerned that drug traffickers are exploiting the inexperienced, two year old Central Bank system to launder drug profits.  Moreover, Ukraine does not yet have any laws against money laundering and no asset seizure laws have been passed.  

III.  Country Actions Against Drugs in 1993 

Policy initiatives.  The economic crisis is the most pressing concern for the GOU, and there has been little attention given to developing a country-wide strategy to combat narcotics.  Antidrug efforts continue  to suffer from lack of resources and inexperienced personnel.  However, the Ministry of Health recently created a Committee for the Fight Against Narcotics which includes representatives from the four security services, the Ukraine Ministry of Health and the Ministry of Foreign Affairs.  The effectiveness of this body has been been limited by interagency rivalries.  Various government bodies have drafted antidrug legislation, but the Parliament has not yet reviewed the legislation.  Moreover, the old legal code which allows the possession of small quantities of drugs for personal use remains an impediment to effective law enforcement operations.  

Law Enforcement.  The Ministry of Interior, which shares the lead for antidrug efforts with the Ministry of Health, has expanded its drug law enforcement measures, including the annual poppy eradication effort.  The security services have established narcotics departments and are reprogramming resources for counter-narcotics.  Interdiction efforts have expanded over the last year, and the Ukranian militia reported that 19.7 tons of drugs were confiscated in 1993, up from 15 tons in 1992.

Corruption.  The economic crisis has also led to claims of significant corruption among government officials and politicians.  The government  has been unable to take effective action against 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 1971 UN Convention on Psychotropic Substances.  The GOU is modifying its antidrug law to implement the 1988 UN Convention.  However, effective implementation will require,inter alia, stricter controls on narcotics trafficking and production, more effective law enforcement, the imposition of criminal penalties for narcotics possession, and the promulgation of laws preventing money laundering and establishing asset seizure provisions.  

Cultivation and Production.  The GOU continues to outlaw poppy cultivation, except for officially registered hemp and poppy crops, which are limited to 9,000 hectares in 176 farms, and are strictly monitored by police units stationed in fields while the crops are being harvested.  However, illicit cultivation exists.  Koknar, a homemade mixture of boiled poppy straw that some experts believe causes the same effects as heroin when injected, is produced throughout Ukraine.  

Domestic 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.  US Policy Initiatives and Programs.

Policy Initiatives and Bilateral Cooperation.  In 1993, the USG continued 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 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 in Moscow and in Budapest.  The US is also funding Ukrainian participation in a demand reduction training program.  

The Road Ahead.  The USG will continue to encourage the GOU to expand its drug law enforcement activities, and to establish the necessary legislative and institutional capabilities.  US drug control assistance will be provided primarily through the UNDCP, however, INM will also fund some limited bilateral training, including two Coast Guard courses and a regional drug enforcement program in Kiev.



UNITED KINGDOM

I. Summary

The UK is mainly a consumer country for illicit drugs.  It continues to attract cocaine and heroin traffickers due to higher market prices for the drugs than in the United States.  British officials consider heroin their principal drug use problem, but they are also concerned about growing cocaine use. 

Her Majesty's Government (HMG) follows a two-pronged strategy to reduce the supply of drugs through improved international cooperation, and to reduce narcotics consumption through better drug abuse education programs and more effective rehabilitation and treatment programs.  In 1993, HMG introduced a tougher crime bill in response to an increase in drug-related crime levels, and strengthened UK money laundering laws to deter drug-related money laundering.  By the time HMG ratified the 1988 UN Convention in 1991, it already had passed legislation to implement the Convention's goals and objectives. 

HMG monitors domestic trade in precursor and essential chemicals through a voluntary arrangement with the UK chemical industry.  HMG is also active in the Council of Europe's Pompidou Group to develop strategies to control trade in precursor and essential chemicals.

HMG actively participates in international drug control efforts with bilateral agreements and is involved in multilateral organizations, such as the Dublin Group, the UN International Drug Control Program (UNDCP), and the Financial Action Task Force (FATF).

II.  Status of Country

While HMG does not maintain statistics on drug use, UK authorities believe heroin abuse is their primary drug abuse problem.  They acknowledge that while the anticipated crack cocaine epidemic has not occurred, cocaine use is increasing.  Authorities are also concerned about an increase in the use of synthetic drugs, particularly MDMA (ecstasy) and LSD.

The UK produces and exports many precursor and essential chemicals.  HMG has in place national chemical control legislation based on the European Community regulations.  HMG has been monitoring domestic trade in precursor and essential chemicals since 1971.  This has been accomplished through a voluntary arrangement between the National Criminal Intelligence Service (NCIS) and the UK chemical industry.

British banks and other UK financial institutions are vulnerable to money laundering.  Narcotics proceeds are converted in the UK and also transit the country.  The Channel Islands and the Isle of Man have offshore banking facilities that are believed to attract drug funds, and have adopted money laundering countermeasures.  HMG continues to participate actively in the Financial Action Task Force (FATF), and was the first to ratify the Council of Europe's Convention on Money Laundering.

III.  Country Actions Against Drugs in 1993 

Policy Initiatives.  HMG actively participates in international counternarcotics fora, such as the Dublin Group where it chairs the Southwest regional working group.  It is a major donor to the UNDCP contributing approximately $4.8 million in 1993.  It plays a lead role in Europol, an EU-wide police organization responsible for collecting, analyzing and disseminating intelligence on drug trafficking, money laundering and other criminal activities.  

Accomplishments.  In 1993, the USG and HMG concluded a Mutual Legal Assistance Treaty (MLAT) which provides for bilateral sharing of evidence and identification of witnesses.  The MLAT was signed in January 1994 and will enter into force after ratification.

In response to rising gang violence, some of which is related to drug trafficking, HMG drafted a tougher crime bill, which is expected to be passed by the British Parliament in 1994.  Also in 1993 HMG amended its Drug Trafficking Offenses Act of 1986 to allow financial institutions to make voluntary reports of suspicious transactions to UK authorities without breaching bank confidentiality laws.

Agreements and Treaties.  HMG ratified the 1988 UN Drug Convention in 1991, has passed appropriate implementing legislation, and is generally meeting the Convention's goals and objectives.  The United States and the UK have an active and cooperative extradition relationship under the governing extradition treaty.  During 1993 HMG extradited a number of individuals wanted in the United States on charges of drug trafficking.  The USG and UK also have an agreement allowing US Coast Guard personnel to ride British ships patrolling Caribbean waters. 

Law Enforcement.  HMG law enforcement forces are efficient and effective.  In 1993, UK police authorities made over 50,000 arrests for drug related offenses, and seized over 2,200 kgs of cocaine (2,300 kgs in 1992) and 546 kgs of heroin (449 kgs in 1992).  Law enforcement authorities have successfully detected and eliminated laboratories engaged in the illicit production of synthetic drugs, particularly amphetamines. 

Corruption.  Public service corruption is not considered a problem in the United Kingdom.  Authorities have taken strong measures to prevent and punish narcotics-related corruption.  They do not as a matter of government policy or practice encourage or facilitate the illicit production or distribution of drugs or other controlled substances or the laundering of drug money.  Senior officials neither engage in the production or distribution of drugs nor launder proceeds derived from drug trafficking.

Drug Flow/Transit.  Cocaine shipments usually arrive directly from Central and South America.  Shipments of heroin and marijuana originate in Pakistan and Afghanistan and arrive either via the Balkans or across the Mediterranean from North Africa through Spain.  UK drug seizures figures indicate the flow of drugs continues to grow, particularly heroin.  Almost all the MDMA comes from the Netherlands, while the LSD comes directly or indirectly from California.  DEA reports that of all the European nations, the UK has the highest demand for LSD.

Demand Reduction Programs.  HMG's demand reduction efforts focus on educating young people.  Teams located in high-risk urban areas work closely with the community in advertising the harmful effects of drugs, disseminating information, running training seminars for youth workers, and organizing diversionary activities for youngsters.  Authorities believe effective educational programs on the dangers of drug use aimed at the young have prevented a predicted epidemic in crack use. 

IV.  US Policy Initiatives and Programs 

The USG does not have counternarcotics programs in the United Kingdom. Law enforcement cooperation between the HMG and USG law enforcement authorities is excellent.  HMG cooperates closely with the USG and other countries to trace or seize assets.  Approximately $20 million of assets were forfeited and/or seized in the past year.  HMG laws permit the sharing of forfeited assets only with the USG. 

The Road Ahead.  The USG will look to the UK, along with other Western European countries, to take the lead in assisting Eastern Europe and the Newly Independent States with their anti-drug efforts.  The USG looks forward to continuing to hold periodic counternarcotics consultations with UK anti-drug officials and to collaborate closely in a number of multilateral organizations such as the Dublin Group and UNDCP.  The USG will continue to encourage the UK to maintain its counternarcotics efforts in the Caribbean, Latin America, Southwest and Southeast Asia, and Africa. 



CENTRAL ASIAN STATES 

Kazakhstan, Kyrgyzstan, Tajikistan Turkmenistan, and Uzbekistan

I. Summary

The drug trade is gaining ground in the Central Asian States of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.  Political and economic changes have exacerbated the drug problems in 1993.  Open borders and conflict in Tajikistan are fueling domestic production and encouraging trafficking.  Opportunities for drug smuggling have further increased with the expansion of commercial ties and transportation links to other parts of the Newly Independent States (NIS), and to the West.  Direct flights from Tashkent and Almaty to Frankfurt and Ankara opened new smuggling routes.  Uzbekistan authorities seized over 30 tons of hashish in December 1992-February 1993 and several tons of opium enroute to Turkey.  Officials from Tajikistan and Uzbekistan also note that Afghan opium is often traded for arms and supplies on the Tajik-Afghan border.  Meanwhile, Moscow is becoming more vocal about the smuggling of heroin and hashish from Afghanistan through the Central Asian states.  

Opium cultivation is also continuing.  For years, opium poppy was cultivated in Kyrgyzstan and Kazakhstan for licit pharmaceuticals, while it was 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, illicit opium poppy cultivation continues.

Central Asian authorities report that there are no reliable statistics on the extent of current cultivation, but indicate that most opium poppy is grown in small plots, often in remote mountain areas, primarily in Kyrgyzstan, Uzbekistan, and Kazakhstan.  Tajikistan authorities indicate that opium poppy cultivation is increasing in the Afghan border regions.  All the Central Asian states, but particularly Turkmenistan, Tajikistan, and Uzbekistan, have reported that opium use is increasing and there are signs that heroin use is emerging.  Cannabis and injectible opium poppy extract are the most widely used drugs, however. 

Most drug trafficking organizations that operate in Central Asia are local criminal gangs, according to domestic counterdrug authorities.  In addition, there are some reports of criminal elements from Russia and the Transcaucasus region establishing drug connections in Central Asia.

While in 1993 all five Central Asian States began limited antidrug activity, a high-level response has not emerged from any of the States.  The governments are unable even to continue many of the operations formerly conducted under the Soviet Union due to a lack of resources, particularly in law enforcement and border control activities.  Kyrgyzstan continues to be the most advanced in designing a domestic antidrug strategy, but government efforts have focussed on continuing the limited interdiction and manual eradication activities begun under the USSR.  Turkmenistan's demand reduction program, albeit small, is the most advanced in the region in response to a rising opium problem.  

The Soviet Union was a party to the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs and the 1971 Convention on Psychotropic Substances.  Prior to the dissolution of the USSR, the new Republics agreed at Almaty 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.  

None of the States has taken the necessary actions to accede to the conventions and be listed by the depositary.  However, each has continued limited measures against drug trafficking.  While these actions are consistent with the Convention's goals, the states will need to bolster their efforts to meet these goals fully.  All five governments are in different stages of drafting updated penal codes that will take the UN drug Conventions into consideration.  None of them has completed the effort.  In the interim, the USSR's 1961 penal code is in place.


Kazakhstan

II.  Status of Country

In 1993 the drug trade in Kazakhstan accelerated.  Drug traffickers continued to exploit the location, the fields of wild cannabis, and the fields of opium poppy which were once cultivated for licit production.  Ministry of Interior (MVD) officials estimated a 30 percent increase in drug production and trafficking over the previous year.  

These officials are even more worried about wild cannabis in the Chu Valley, which they estimate covers 138,000 hectares with a potential annual yield of 5,000 tons.  However, the MVD has halted most eradication efforts, because it no longer receives helicopter support from Moscow.  European officials believe that cannabis from this region is now exported to Europe by ethnic Greek and German gangs.  Press reports claim that Colombian drug traffickers and Italian Mafia have been in contact with Chu Valley traffickers to purchase cannabis.

MVD officials continue to express concern about illicit opium poppy cultivation.  In contrast, some limited eradication of opium poppy continues, but there are no official estimates of the extent of this growth.  Moreover, because it is a crossroads for Central Asia and the NIS, most drugs, including opiates and hashish, from Southwest Asia are smuggled through Kazakhstan.  Press reports indicate 1.4 tons of morphine base from Afghanistan were stored temporarily in Almaty before onward shipment through Central Asia, to Turkey.  The lack of effective customs controls, together with better transportation links throughout the area, is increasing such trafficking activity.

Health officials state that drug abuse is much higher than reflected in the number of registered addicts; 10,697 in 1991.  This number primarily reflects cannabis users in regions where cultivation is high.  In Chimkent, a 1993 survey indicates one out of every 14 citizens uses cannabis.  Health officials note that the use of homemade opium poppy straw and other opiates is on the rise.

II.  Country Action Against Drugs

Policy Initiatives/Law Enforcement.  In 1993, the Government of Kazakhstan (GOK) began to formulate a new counterdrug strategy.  The plan has not yet been released.  Most of the antidrug resources are focussed on the China border.  These activities, which come under the Ministry of Interior (MVD) and the Prosecutor General's office, focus on small-time interdiction and eradication of poppy.  The MVD's 400 police officers, 100 sniffer dogs, and a special drug investigative unit of 12 officers, however, remain constrained by a lack of resources and training.  The new penal law is still under review.  

Kazakhstan has been a leader in urging cooperation among the Ministries of Internal Affairs of the other Central Asian States.  In addition, Russia and Kazakhstan agreed in 1993 to conduct periodic sweeps in the Chu Valley and to cooperate with Kyrgyzstan in joint eradication efforts.  The GOK has signed antidrug cooperative agreements with Turkey, Pakistan, China and Iran.  The GOK has requested a Memorandum of Understanding with the US, and is seeking Western assistance to revamp the legal code and to introduce new provisions on drug trafficking, organized crime, money laundering, and customs regulations.  

Cultivation and Production.  Cultivation of opium poppy and cannabis is illegal in Kazakhstan.  However, MVD officials report that illicit poppy is grown in southern Kazakhstan, though the extent of such growth is unknown.  Kazakhstani authorities also estimate that the country has over 138,000 hectares of wild cannabis, with an unusually high THC content.  The UN reports, however, that massive eradication of this cannabis could prompt an ecological disaster, transforming the valley in which it is grown into a desert. 

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 1991, the pharmaceutical plant in Chimkent processed 150 tons 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 has drafted a new penal code which takes into account the international drug conventions and is expected to go to the Parliament for review.  In the interim, the GOK 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 the imposition of criminal penalties for narcotics possession.

Domestic Programs.  The Ministry of Health is continuing its limited antidrug programs, which include a Narcology Center with a treatment and prevention program that targets teenagers.  In theory, addicts can submit themselves for voluntary treatments of two-month periods, with follow-up therapy over five year periods.  In fact, authorities lack the resources to furnish treatment on demand, and are revamping their program to conform to changed political and financial realities.


KYRGYZ REPUBLIC

II.  Status of country.  

The drug trade is increasingly targeting Kyrgyzstan as a  transshipment point for opiates going to Europe.  Senior Kyrgyz law enforcement officials report increased smuggling from Tajikistan.  The on-going civil strife in Tajikistan combined with the Kyrgyz law enforcement agencies' limited resources suggest that drug trafficking will continue to grow.  In 1993 alone, more than 100 kgs of opium entering the Kyrgyz republic from Tajikistan were confiscated.  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.  The growing use of this route by traffickers has resulted in a corresponding rise in drug related crimes in Kyrgyzstan.  Moreover, the GOK is concerned that, with the introduction of international flights to Bishkek in 1994, the volume of drugs transiting Kyrgyzstan will increase.

Kyrgyz officials also believe that opium cultivation is on the rise, although there are no reliable estimates on such cultivation.  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.  Several Kyrgyz officials have indicated that the drug cultivation and trafficking is destined primarily for markets within the former Soviet Union.

Drug use, particularly among youth, is becoming more prevalent in Kyrgyzstan.  In 1993, President Akayev expressed concern that  Kyrgystan has one of the largest drug abuse problems in Central Asia with 50,000 consumers.  Officials believe that the recent decline in law and order, a loosening of family ties, and the increase in crime among youths have fueled domestic use of opium.  Escalating drug trafficking from Afghanistan via Tajikistan makes opiates, including heroin, more available.

III.  Country Action

Policy Initiatives.  In 1993 the GOK began to form a national strategy for drug control.  Against this backdrop, the GOK created the State Commission for the Control of Illicit Drugs, to coordinate all government activities, in May 1993.  A comprehensive nation-wide campaign against drug addiction and illegal use was also adopted by the GOK.  With UN assistance the GOK drafted new antidrug legislation, which is expected to go into effect in 1994.  The Soviet penal code continues in force in the interim. 

Law Enforcement Efforts.  Kyrgyzstan still lacks many of the basic resources to institute effective, coordinated law enforcement efforts.  Four government agencies are involved in drug control activities in Kyrgyzstan.  These include the Ministry of Interior with 180 special drug control officers, the Committee for National Security, Customs, and the office of the procurator.  Seizures in 1993 include 500 kilos of cannabis, 100 kilos of opium, and 500 kilos of opium poppy.  Most law enforcement efforts focus on eradication and interdiction activities begun under the former Soviet Union.  In the first nine months of 1993, the GOK eradicated 3,416 square meters of poppy and 2,663 hectares of wild hemp, and seized 36 laboratories producing psychotropic drugs.  

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

Agreements and Treaties.  The Parliament is expected to review and approve the UN drug control treaties early in 1994.  The GOK is also expected to pass antidrug legislation which will take into account the need to implement 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 signed an antidrug agreement with all other NIS in 1992, and a bilateral agreement with Germany in 1993.

Cultivation and Production.  Although Kyrgyzstan was once a key supplier of licit opium poppy for the Soviet Union, the GOK continues the ban of opium poppy cultivation imposed by the Soviet Union in 1973.  Prior to 1973, over 7,000 hectares of opium poppy were cultivated annually and sent to a plant in Kazakhstan for morphine processing.  Difficulties in controlling the licit cultivation and processing of opium prompted Moscow to ban opium poppy growing in 1973, and to begin importing opium poppy straw from India. 

Opium poppy continues to grow wild, and is also still cultivated for illicit purposes.  Most cultivation is in remote mountainous regions, although authorities report the discovery of a poppy field in Bishkek.  There are no reliable estimates of the extent of the cultivation.  There are also reports that the ephedra plant 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 Chu Valley, which stretches south of Kazakhstan and near Ysyk-kol Lake.

Domestic Programs.  Economic conditions in Kyrgyzstan prompted the GOK to slash funds allocated to the country's five drug treatment centers in Bishkek, Osh, Karakol, Naryn, and Talas.  


TURKMENISTAN

Part 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 domestic opium addict population.  Opium was smoked, brewed, or processed into a beverage for celebrations, medicine, or daily use by tribal peoples.  Health officials report that 70 percent of opium users in urban areas inject opiates.  Intravenous opium use in rural areas, once practically nonexistent, also increased in 1993.  Some domestic processing and use of heroin may also occur.  Marijuana use is also prevalent.

Opium from Afghanistan and Iran reportedly transits Turkmenistan, as well as Uzbekistan and Tajikistan, en route to markets in Russia and Turkey.  Opportunities for drug smuggling are expanding with the breakup of the Soviet Union and the opening of borders with Iran and  Afghanistan.  Recent improvements in international transportation connections are increasing possibilities for drug trafficking.  Direct air routes now link Ashgabat with Teheran, Istanbul, and Karachi; a rail line is being constructed to Iran; and truck transport to Europe has become more common.

Drug sales and distribution appear to be controlled by local traffickers, according to Turkmen authorities. The apparent increase in opium use suggests a higher incidence of drugs being smuggled into the country from Iran and Afghanistan.  Increased local production, likely on small plots, may also be a factor, according to health officials.  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 1993

Policy initiatives.  There have been some recent signs that the Government of Turkmenistan (GOTX) will devote increased priority to the drug problem.  Drug enforcement and rehabilitation programs to date have been minimal.  Efforts begun in 1992 by the Ministry of Health to formulate a national drug policy foundered in 1993.  The December, 1993, visit by a representative of the Central Asia field office of the United Nations drug control program (UNDCP) heightened interest in drug issues by GOTX officials.  The development of a government coordinating committee on drug issues, a requirement for the provision of UNDCP assistance, is expected in 1994.  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.  Despite limited enforcement resources, the GOTX has recently interdicted cargoes of Afghan opium bound for Turkey in trucks and cars.  Turkmen authorities are becoming more open to cooperative anti-drug efforts within the region, and to international efforts, including with the DEA.  To the extent possible, police forces under the Ministry of Internal Affairs (MVD) continue to enforce Soviet-era laws against drug possession, use, and opium poppy cultivation.  Semi-annual campaigns using helicopters to locate and destroy illegal poppy and cannabis fields continued in 1992-93.

Turkmenistan has also increased its level of contact with international organizations such as the UNDCP and the World Health Organization.  Health officials have taken advantage of training opportunities, and customs officers have received training on drug interdiction.

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

Agreements and treaties.  Turkmenistan has made no effort as yet to become a party to the any of the drug-related UN conventions in its own right. It has entered into no bilateral agreements with the US on drug-related issues.  Currently the GOTX 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 the imposition of criminal penalties for narcotics possession.

Cultivation/production.  The cultivation of opium poppy is illegal in Turkmenistan.  Illegal cultivation, however, does occur, particularly in remote mountain and desert areas and in small local plots.  No quantifying statistics are available.  Cannabis is also widely grown in Turkmenistan.  Processing of opium resin and poppy straw extract, using widely available chemical agents, occurs, primarily for individual use.

Domestic programs.  A limited drug and alcoholism treatment program continues under the Ministry of Health.  The program was started during Soviet rule, with over 100 physicians involved.  Health personnel have benefited from recent training opportunities, but the government has not significantly increased budget allocations for demand reduction programs.


TAJIKISTAN

II.  Status of Country 

Tajikistan's uncontrolled frontier areas, and the conflict in northeast Afghanistan suggest Tajikistan may emerge as a preferred conduit for opium trafficking.  Drug traffickers are already exploiting Tajikistan to smuggle opiates from Afghanistan, Pakistan and possibly Iran and India to other NIS states and, to a lesser extent, Western Europe.  Political upheaval, open borders, and a rise in Afghan opium production across the border have left Tajikistan vulnerable to the drug trade.

There are increasing indications that these smuggling operations are becoming more sophisticated.  Government of Tajikistan (GOTI) authorities indicate that 60 percent of the opium from Afghanistan's Badakhshan province is smuggled into the Pamiri region of Gorno Badakhshan via a network of small rivers and the Ishkahsim into Gorno Badakhshan and then via the Khoroq-Osh road to Kyrgyzstan.  Another key route is through the Pamir region and then to Dushanbe by road and air.  MVD authorities also believe that one-third of all illicit drugs from Afghanistan are smuggled through Dushanbe and onward to Moscow, other NIS states, and some European states.

Several accounts, including from the GOTI, note that guns and opium from Afghanistan are exchanged for food and medicine.  There 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 abuse of opium in Dushanbe and the Pamir region (Gorno Badakhshan) is growing, with low grade heroin surfacing for the first time in Dushanbe.  GOTI efforts to stop trafficking were stymied in 1993 by a loss of control of much of the area that is used for trafficking.

Tajikistani officials indicate that the opium crop is expanding.  GOTI authorities claim that private opium buyers from Uzbekistan, Turkmenistan, and elsewhere are prompting a dramatic increase in the production of Tajikistan-grown opium which appears to be destined for foreign markets.  However, it is difficult to counteract this threat, since the breakdown of inter-republic ties following the collapse of the Soviet Union has disrupted cooperation on narcotics control and a loss of timely intelligence sharing.  The GOTI has developed no other instrument for international cooperation, such as through the UN or Interpol.

III.  Country Action Against Drugs

Policy Initiatives/Law Enforcement Efforts.  A diversion of law enforcement and other resources to deal with domestic turmoil has prevented the emergence of a GOTI drug strategy and limited efforts to target the drug trade.  Nevertheless, the government decreed in the Spring of 1993 that Sovkhoz and Kholkhoz leaders can be held responsible for illicit opium or other narcotics found growing on their territory.  This, according to officials, has garnered increased cooperation from such local leaders who in the past were often unwilling to offer full cooperation to state anti-narcotics authorities.

The Ministry of Interior has drafted legislation to reorganize and  increase financing for the two existing anti-narcotics offices in the Ministry, combining their efforts and expanding staffing to include anti-narcotics personnel in each district.  The legislation is now under review by the Council of Ministers.  The combined and expanded unit would be better positioned to coordinate with units of the National Security Council (KNB, formerly KGB), Customs, Ministry of Health and the General Prosecutor.  Coordination between these units, at this stage, remains ad hoc. 

Law enforcement efforts have been hamstrung by an inadequate administrative framework and antiquated or non-existent national legislation.  Moreover, the collapse of the Soviet system has left the government without funding or focus in its antidrug activities.  GOTI officials believe that the increase in seizures and eradication was outpaced by the increase in trafficking and opium production.  

The enforcement apparatus of the Ministry of Interior (MVD) has drafted antidrug legislation to allow for controlled deliveries, wiretap operations, and increased international cooperative operations.

Corruption.  There are rumors of official corruption at more senior levels, but cases remain unproven.  The GOTI does not encourage or facilitate the illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.  No senior official is known to engage in the production or distribution of drugs, or in money laundering. 

Agreements and treaties.  Once it is passed, the new antidrug legislation will allow for implementation of the provisions of the international drug 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 the imposition of criminal penalties for narcotics possession.

Tajikistan has no applicable bilateral narcotics agreement with the US, or any multilateral agreements.  An anti-narcotics coordination meeting scheduled for Baku in Azerbaijan in late 1993 never materialized. 

Cultivation/Production.  Cultivation of opium is illegal in Tajikistan.  The principal opium production occurs above the 4,000 foot elevation in the Zarafshan valley in the Pendjikent area.  Contrary to previous reports, senior MVD officials insist that the principal product is not opium straw  but opium culled from the bulbs of the poppy.  In the Zarafshan valley, opium poppy is harvested approximately every 45 days.

Domestic efforts.  Funding shortages limit domestic demand reduction programs.  Dushanbe maintains the only drug abuse treatment center, a hospital/clinic with 20-30 beds and no rehabilitation program. 


UZBEKISTAN

II.  Status of Country 

Uzbekistan's location in Central Asia and the relatively modern transportation system through Tashkent make it an increasingly attractive brokering center for drug operations.  Expanded smuggling activity and opium cultivation underscore Uzbekistan's attractiveness.  As evidenced by a record seizure of over 14 tons of Afghan hashish destined for the Netherlands in February of 1993 and another of 13 tons in 1992, Uzbekistan is already emerging as a central conduit for moving drugs to Russia and the West.

These operations, increased smuggling by air and increased indications that drug sales are funding armed groups in Afghanistan and Tajikistan, have heightened Government of Uzbekistan (GOU) concern.  GOU officials note that drug-related crime is rising  steadily.  They also fear that the economic disruption following the collapse of the Soviet Union and its ruble zone and the recent sudden introduction of a national currency will lure Uzbekistanis into the drug trade.  Uzbekistani authorities indicate that Azeri, Georgian, and other criminal groups appear to make use of Tashkent for their connections to Russia and the West.

There are some signs that opiate use is increasing, and domestic drug use is receiving more attention.  The Ministry of Health cites 12,000 registered addicts, but estimates a total of 44,000 addicts.  

MVD officials have indicated that opium poppy continues to grow in Samarkand and other mountainous areas of the region, primarily on the border with Tajikistan.  Uzbekistani authorities believe that most cultivation is small individual plots for domestic consumption.  Cannabis also grows wild in Uzbekistan.

III.  Country Action Against Drugs

Policy Initiatives/Law Enforcement Efforts.  The GOU is still the process of formulating a national drug strategy.  Coordination between the three key agencies--the National Security Service, the Ministry of the Interior and State Customs Committee--is still informal.  The new draft criminal codes are now under review, and the GOU passed a law on mandatory treatment for drug addicts.  In 1993 minimal eradication efforts through police raids on illicit opium poppy and cannabis fields continued.  Police are working with local governments to target drug smuggling, including Afghan hashish operations.  The recently established Customs Service is beginning to train officials to detect drug smuggling operations. 

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

Agreements and treaties.  A new draft penal code is under review by the GOU which will take into account the provisions of the international 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, and more effective law enforcement.

Cultivation/Production.  GOU officials acknowledge the existence of opium poppy cultivation, particularly in the mountainous regions of Samarkand and Syrhandarya.  There are no accurate statistics on the extent of such cultivation.  Current practice is to equate acreage eradicated with acreage under cultivation; GOU anti-narcotics officials have asked for help to increase their capability to locate remote fields.  Cannabis grows wild, and is commonly used in many rural areas.

Demand reduction programs.  GOU domestic programs continue to suffer from adequate resources.  The GOU has six substance abuse rehabilitation clinics throughout the country, but these tend to focus primarily on alcohol problems.

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  In 1993, the USG continued a counternarcotics dialogue with each of the new governments of the Central Asian states to urge them to give priority to the drug issue.  Efforts are focussed on identifying existing problems, possible areas for assistance, and the need to accede formally to the UN drug Conventions.  Against this backdrop, the INM sent a delegation to Uzbekistan, Turkmenistan, Kyrgyzstan and Kazakhstan to conduct a preliminary needs assessment.  INM followed this assessment with several regional training courses, including a demand reduction course in Almaty, a Customs course in Almaty, and a DEA-regional course in Moscow that included the Central Asian states.  Another DEA regional course for the five Central Asian States is planned for Tashkent in the near future.

INM is also encouraging the development of a preliminary estimate  of opium poppy cultivation.  This has proved difficult because most opium poppy in the region appears to be cultivated in small plots in remote areas.  

Moreover, the USG has worked with the UNDCP to encourage increased drug control support for Central Asia.  The UNDCP opened a regional office in Tashkent in June 1993.  The United States continues to urge those Western European nations which are most directly affected by heroin smuggling through Central Asia to increase earmarked contributions for UNDCP.  

The Road Ahead.  Over the next year, the USG will continue to encourage the Central Asian States' governments to expand their drug control activities, and to establish the necessary legislative and institutional antidrug capabilities to enable them to comply with the 1988 UN Convention and other international instruments.  The USG will also urge the NIS to increase opportunities for bilateral and international cooperation.  The bulk of US assistance to Central Asia in the near term will be channeled through contributions earmarked to the UN.  In addition, INM will continue to offer modest levels of bilateral training for Central Asia.  



TRANSCAUCASIA  

Azerbaijan, Armenia, and Georgia

I.  Summary

The Transcaucasus region--Azerbaijan, Armenia, and Georgia--has emerged as a transshipment point for hashish and opium from Central Asia and Afghanistan to Russia and Europe.  Although much of the information on the this region is anecdotal, several record seizures of heroin and opium in Georgia between 1992-93 demonstrate the vulnerability of the region to drug smuggling.  Moreover, drug-related corruption is causing concern in Georgia.  Various sources indicate that criminal gangs from the Transcaucasus operate drug distribution networks in Russia and elsewhere in the NIS and Europe.  Drug gangs from Azerbaijan and Georgia continue to be particularly visible in Central Asia and Russia.  

There is some recognition that the drug threat is intensifying; however, the governments of Armenia and Azerbaijan do not appear overly concerned, and their counterdrug efforts have been limited.  Early in 1994 Georgia mounted a counterdrug operation that included raids in nine regions, with tanks and anti-aircraft guns.  Conflict in Georgia and Azerbaijan continues to prevent the emergence of effective regional counterdrug cooperation.  

The USSR was a party to the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs, and the 1971 Convention on Psychotropic Substances.  Prior to its dissolution, each Republic agreed at Almaty 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 the new republics, as successor states to the USSR, continue to be bound by these instruments.

In 1993 Armenia deposited its instruments of ratification with the UN for all three drug Conventions; Azerbaijan did so for the 1988 UN Convention.  The US continues to urge Georgia to take necessary actions to accede to the UN drug Conventions, so that the depositary will include it on its list of parties.  


ARMENIA

II.  Status of Country

There is little information on the extent of drug trafficking, cultivation, or abuse 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.  However, there are unconfirmed press reports that Afghan hashish and opium poppy straw from Central Asia are now smuggled through Armenia.   Moreover, the Armenian government (GOA) acknowledges that international drug organizations operate in Armenia.  This is underscored by the seizure of a 12 kilograms of South American cocaine in 1992.  Most drug smuggling is controlled by several organizations, which are exploiting weak state control of transportation and inadequate government resources for combatting crime, according to Ministry of Internal Affairs (MVD) officials.  These officials also note strong ties between Armenian networks and organized crime groups in Russia.

Hemp and opium poppy continue to grow wild in Armenia.  Both opium and heroin are brought into Armenia from central Asia for local use and, possibly, for transshipment to neighboring countries. The GOA believes that most serious crimes in Armenia are drug-related.

The GOA believes that the proceeds from drug operations are laundered through local businesses.  The country operates primarily on a cash economy, and it is likely that narco-profits are laundered through Russian banks.  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, but no diversions were reported in 1993.  

The GOA is concerned about drug abuse which appears to be increasing, especially among young adults.  Although official statistics number registered drug addicts at 5,000, MVD officials estimate that there are  at least 20,000 drug users.  The MVD attributes the expanding problem to a breakdown of the social structure.  Cannabis appears to be the most prevalent drug, but there are some reports of injectible opium from poppy straw in Yerevan.

II.  Country Action Against Drugs

Policy Initiatives and Law Enforcement Efforts.  The GOA has stated its intention to bolster regional counternarcotics operations in 1994.  In 1993 antidrug efforts were limited to becoming a party to the UN drug Conventions, and to several small scale interdiction operations.  These operations resulted in seizures of approximately 30 kilos of marijuana, 30 kilos of cocaine, and 7 kilos of hashish.  Interdiction operations resulted in the destruction of 11 hectares of cannabis and 3 hectares of opium poppies.  

The MVD, the KGB, and Customs all have counterdrug responsibilities.  In late 1992, the MVD expanded its counternarcotics department to 39 officers.  Local police stations also have one counternarcotics officer.  The GOA proposed a revised criminal code, with tougher penalties for drug trafficking, which is still pending in the Armenian Parliament.

Corruption.  The GOA reported that the director of the chemical and poison research laboratory, a GOA official, was arrested for narcotics trafficking in 1993 and is being prosecuted.

Cultivation and Production.  Hemp and opium poppy continue to grow wild in Armenia, but there is little available information on the extent of this cultivation.

Agreements and Treaties.  Armenia became a party to the three UN drug Conventions in May 1993.


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 Azeris resident in northern Iran.  

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

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

III.  Country Action Against Drugs

Policy Initiatives and Law Enforcement Efforts.  Before the USSR's collapse, all antidrug efforts were orchestrated from Moscow.  After gaining independence, the GOA responded to its perceptions of a a growing drug threat by assigning 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 immediately began counternarcotics training for 1,200 officers, and there have been several small scale arrests by Customs and the police.  Nevertheless, interdiction efforts continue to be hamstrung by interagency rivalries, corruption, and laws which are excessively protective of suspects' rights.  Azerbaijan has begun cooperative counternarcotics efforts, and signed antidrug agreements with Iran, Georgia, and Russia.

Corruption.  Azeri 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

Rising drug trafficking and abuse have recently prompted high-level concern in Tbilisi.  Georgian officials have noted an increased smuggling of opiates and hashish, but most concrete information comes from Western authorities.  For example, Turkish authorities seized 1.5 tons of Afghan morphine base in 1992 and 1.3 tons of opium that had transitted Georgia.  According to Georgian authorities illicit drugs from Afghanistan and Central Asia are  smuggled primarily from Iran, via Azerbaijan and Armenia.  Georgian officials also report that opiates are often smuggled in from Russia through southern Ossetia, which is under Russian protection.

Concern over drug-related corruption prompted the Government of Georgia (GOG) to conduct a series of investigations which led to the arrest of 17 government officials on charges of drug trafficking, use, and corruption.  Georgian authorities report that corruption is wide-spread in the MVD, and that paramilitary groups provide security escorts for drug smugglers and have a reputation for using drugs.  

Demand Reduction.  Georgian medical experts estimate that at least three percent of the Georgian population are addicted to some form of opiate.  Official statistics report 4,000 registered drug addicts in Georgia, but health authorities believe that the number is actually much higher.  They cite the use of hashish, opium, morphine, and even heroin.  Police  officials indicate that expanded drug activity is prompting a rise in burglaries, robberies, assaults, and even murder.

III.  Country Action

Policy Initiatives and Law Enforcment Efforts.  Until January 1994, Georgia's nascent antidrug efforts have been hampered by limited resources and the outbreak of war in Abhazia.  In March 1993, the Government of Georgia (GOG) established an antinarcotics task force of thirty, but these men were later redeployed to fight in the war.  Before the redeployment there were a number of seizures and some limited eradication.  In an unprecedented move in 1994, the Ministry of Interior sponsored a counterdrug operation in nine regions of Georgia.  The operation, which included four T-62 tanks 600 heavily armed GOG police and military men, and a self-propelled antiaircraft gun, netted ten kilos of refined opium, and a large cache of weapons, including machine guns and 50 arrests.

The GOG prepared draft legislation to permit asset forfeiture, but the since the state of emergency declared in October 1993, the Parliament has not been in session. 

GOG officials have participated in regional antidrug meetings to increase drug control cooperation and share narcotics-related investigative information.  Georgia has also just recently become a member of Interpol.  The Ministries of Interior and of National Security have expressed interest in negotiating an extradition treaty with the United States.

Corruption.  There are reports of widespread corruption in Georgia, including corruption among counterdrug officials.  In February 1994, the GOG began investigations into corruption charges and arrested 17 government officials on corruption, drug distribution, and drug use charges.  Of these 17, three were mid-level MVD officials including one involved in the raids mentioned above, a Tblisi prison Director, and the Senior Inspector of the Management Board to Combat Organized Crime and Police Corruption; one was a Customs agent; nine were Georgian military and para-military members, including field grade officials; three were employees of Ministry of National Security;  and one was a Russian military doctor charged with illegal distribution of morphine. 
 
Georgia has bolstered its efforts to target corruption, and the recently formed military police was given a mandate to investigate the Georgian military and paramilitary groups, for alleged drug trafficking and other charges.  Moreover, the newly formed Ministry of National Security has been given broad powers to investigate narcotics trafficking and the implications of related government corruption.

Cultivation and Production.  Opium poppy and marijuana are cultivated in Georgia.  Although the extent of such cultivation is unknown, GOG officials believe that most cultivation is for domestic use.  GOG officials report that they continue to increase their eradication efforts.  

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  In 1993, the USG continued a limited dialogue with each of the governments in the region to urge them to give priority to the drug issue.  Efforts have continued to focus on identifying existing problems, on possible areas for assistance, and on the need to implement UN drug Conventions.  All three countries participated in a INM-funded DEA course in Moscow.  Moreover, the USG is promoting antidrug assistance by those nations, primarily in Western Europe, most directly affected by heroin smuggling through the Transcaucasus.

The Road Ahead.  Over the next year, the USG will continue to encourage the Transcaucasus 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.

The USG plans to continue providing counternarcotics assistance for the NIS through the United Nations Drug Control Program (UNDCP) as well as some bilateral law enforcement training, including regional DEA training courses in Kiev and a regional customs course.

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