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U.S. DEPARTMENT OF STATE 
INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT
MARCH 1995
BUREAU FOR INTERNATIONAL NARCOTICS AND LAW ENFORCEMENT AFFAIRS

EUROPE                                         301  
Albania                                          303  
Austria                                          305  
The Baltics                                    308  
   Estonia  
   Latvia  
   Lithuania  
Belarus                                               313
Belgium                                         316  
Bulgaria                                              319  
Cyprus                                                323  
Czech Republic                               326   
Denmark                                         329 
Finland                                               331  
France                                                334  
Germany                                        337  
Greece                                                340  
Hungary                                               343  
Iceland                                               346  
Ireland                                               348  
Italy                                                 351  
Luxembourg                                     354  
Moldova                                               356  
The Netherlands                               358  
Norway                                           361  
Poland                                                364  
Portugal                                         367 
Romania                                         369  
Russia                                                371  
Slovakia                                        375 
Spain                                                 378  
Sweden                                        381  
Switzerland                                    384  
Turkey                                             387  
Ukraine                                            392  
United Kingdom                                  394  
Yugoslavia (former)                         397
Central Asian States                          399  
   Kazakhstan  
   Kyrgyzstan  
   Turkmenistan  
   Tajikistan  
   Uzbekistan  
Transcaucasia                               409  
   Armenia  
   Azerbaijan  
   Georgia  

ALBANIA

I.   Summary

After half a century of isolation Europe's poorest country is open to the world, and international narcotraffickers now appear to be using Albania as an east-west transhipment route.  The extent of use is unknown as the Government of Albania (GOA) does not keep statistics on abuse or seizures.  However, an informed Albanian police official estimates that up to 50 kilos of heroin transit Albania from Macedonia each week.  This smuggling activity is the result of traffickers re-routing their cargo to avoid war in former Yugoslavia.  Poor border controls, an inexperienced and under-equipped police apparatus, incomplete criminal legislation, and a judicial system in disarray make Albania attractive to drug smugglers.  No significant processing of drugs takes place in Albania, although precursor chemicals are reported to transit Albania destined for Macedonia.

II.Status of Country

Albania's major drug problem is the transit of illicit narcotics -- primarily heroin -- to Western Europe.  Opportunities for smuggling are expanding with the numerous ferry connections to Greece and Italy.  Albanian criminal networks, supported by extensive connections with Italian and Turkish crime families and with recently established Albanian communities in Italy, Germany and Switzerland, are reported to be heavily involved in the drug trade.

Lax borders and port controls are further fueling drug smuggling opportunities.  Large segments of Albania's borders with Greece and Serbia are unpatrolled, resulting in practically unhindred movement of thousands of migrants.  Border crossings and ports are manned by poorly paid, inexperienced and unmotivated customs officers.  Cocaine trafficking has emerged in Albania, with South American cocaine being shipped directly and through Greece to Albania, and from there to Western Europe, especially Italy.

Cultivation of poppy and cannabis for household consumption is traditional and widely spread in rural areas.  There are reports of domestic marijuana being exported to Macedonia and Greece.  Data on domestic drug usage is lacking.  However, officials have expressed concern that a growing class of newly wealthy business people are creating a domestic demand for drugs.   

Money laundering threatens to become a problem as conditions for foreign investment improve, while corruption and poor controls persists.  However, the primitive banking sector in Albania limits the possibilities for money laundering operations.

III.Country Actions Against Drugs in 1994

Several legislative changes in 1994 will support future anti-drug efforts.  Law number 7491 was amended to outlaw "the preparation, import, possession or sale of drugs and other narcotic material".  It provides for sentences of up to 15 years in prison for those convicted of drug offenses.  A provision criminalizing money laundering has been included in a draft penal code awaiting parliamentary approval.  The Inter-ministerial Committee on Drug Control established in 1993 has been given responsibility for developing a national drug control strategy.

Albania's counternarcotics accomplishments were minimal in 1994.  Modest efforts were hindered not only by lack of training, but also by a lack of even the most basic equipment, including laboratories, communications and surveillance gear, and drug-sniffing dogs.  Lack of effective inter-ministerial coordination also results in gross inefficiencies and poor allocation of scarce resources.  An inadequate judicial system threatened to undermine those law enforcement efforts that were made.

Corruption.  GOA officials believe that corruption exists among public officials with regard to narcotics.  Albania has no special laws governing this type of corruption and has not focused its law enforcement efforts on countering public corruption.  No Albanian officials were arrested for narcotic offenses in 1994.

Agreements and Treaties.  GOA officials acknowledge that accession to the 1961, 1971 and 1988 UN Conventions is a priority for Albania.  In response to a request for legal assistance, a UNDCP expert visited Albania in April 1994 and provided advice on accession procedure and needed changes in current legislation.  The 1933 extradition treaty between the US and Albania remains in force.

IV.US Policy Initiatives and Programs

A DEA representative visited Albania in 1994 to develop contacts with Albanian drug enforcement officials and present a half-day training seminar.  Two Interior Ministry officials attended an INL funded regional law enforcement training program.

The Road Ahead.  Over the next year the USG will encourage the GOA to expand its drug control activities and to establish the necessary legislative and institutional capabilities to support such activities.  During 1995, the USG will focus on urging Albania to ratify and implement the UN Conventions.  Specific attention will be given to supporting efforts to target money laundering.  In addition, the USG will continue to encourage the West European nations most directly affected by drug trafficking from this region to increase assistance to the GOA.  The USG will also urge UNDCP antidrug assistance programs in the region and will provide some bilateral assistance.  INL will include GOA participants in regional law enforcement and demand reduction training to assist Albania's antidrug campaign.


AUSTRIA

I.Summary

Austria is a transit country for heroin and cocaine, primarily destined for Western Europe.  During 1993 (1994 figures are not yet available), the number of arrests for drug offenses rose to 10,915, an increase of 39.8 percent over the previous year.  Drug deaths fell slightly to 173 in 1994.  The Government of Austria (GOA) has not yet ratified the 1988 UN Convention.

Austria is medium-priority money laundering center, although some money laundering occurs.  The diversion of precursor and essential chemicals from Austria to illicit drug manufacturers is not considered a problem.

II.  Status of Country

GOA officials believe there are about 10,000 Austrians addicted to drugs.  About 2,500 are receiving on methadone treatment.  Drug-related deaths were 173 in 1993 compared to 187 in 1992 (most recent statistics).

Austrian officials are concerned about increased drug trafficking from Central Europe and the Newly Independent States of the former Soviet Union.  Austria will join the European Union (EU) in 1995 and will be obligated to coordinate its counternarcotics laws and policies with other EU members, including conforming to the EU directives on money laundering and chemical control.

Austrian officials believe some money laundering takes place. Money laundering is a criminal offense in Austria and in the first three months of 1994 Austrian banks reported 86 suspicious financial transactions to GOA authorities.  The GOA has a system for identifying, tracing, freezing, seizing and forfeiting narcotics-related assets, however, it does not share seized narcotics assets with other countries.

The diversion of precursor and essential chemicals from Austria is not considered a problem.  Austria has no mandatory chemical controls, however, it is drafting laws to control the import and export of precursor and essential chemicals. 

III.  Country Actions Against Drugs in 1994

Policy Initiatives.  Austria is preparing legislation on the control of additional drugs which Parliament is expected to approve in mid-1995.  As noted above, Austria is also working on import and export controls on precursor and essential chemicals.

Austria participates in several international counternarcotics organizations, including the Financial Action Task Force and the UN International Drug Control Program (UNDCP).  In 1994 the GOA contributed approximately $500,000 to UNDCP.

 Accomplishments.  The GOA submitted to Parliament amendments to the penal code to improve asset forfeiture laws and judicial assistance.  Parliament is expected to vote on the amendments in 1995.

Austrian customs authorities established a special counternarcotics unit at the Italy-Austria border to stop smuggling along a new drug route from Turkey to Italy and Germany, via Austria.

Agreements and Treaties.  Austria has signed but not ratified the 1988 UN Convention.  It is generally meeting the goals and objectives of the Convention with regard to cultivation, distribution, sale, transport, financing, and law enforcement and transit cooperation.  The GOA still requires changes to legislation concerning asset forfeiture and precursor chemical control to fully meet the Convention's goals and objectives.

Austria is a party to the 1961 Single Convention on Narcotics and its 1972 Protocol.  The GOA and USG have negotiated and expect to sign a Mutual Legal Assistance Treaty in 1995.  Negotiations are continuing on a new extradition treaty which would replace the 1934 treaty currently in force.

Law Enforcement Efforts.  GOA authorities cooperate closely with USG officials on counternarcotics cases.  Drug statistics for 1994 have not yet been released.  In 1993 Austrian authorities seized 424 kgs. of cannabis (compared to 107 kgs. in 1992), 105 kgs. of heroin (compared to 78 in 1992), and 84 kgs. of cocaine (compared to 58 kgs. in 1992).  Austrian police also arrested 10,915 people on drug-related charges in 1993, compared to 7,805 in 1992.

Corruption.  Narcotics-related corruption is not a problem in Austria.  GOA anti-corruption laws deter public officials from facilitating the illicit production or distribution of drugs, or the laundering of drug money.  The USG is not aware of high-level Austrian government officials' involvement in drug-related corruption.

Cultivation/Production.  The USG is not aware of any illicit drugs produced or cultivated in Austria.

Drug Flow/Transit.  Austrian officials are concerned about increased drug trafficking from Central Europe and the Newly Independent States of the former Soviet Union (NIS).  Cocaine from South America transits Austria, via Central Europe and the NIS, to other markets in Western Europe.  Austria is also a transit country for heroin from Southwest Asia.

Demand Reduction Programs.  GOA's Health and Education Ministries are developing a comprehensive program to educate youths on the dangers of drug use.  A drug information kit has been distributed to all students 14 years or older.  Nationwide there are about 60 drug advisory centers, 12 of which offer specialized therapies for drug-related problems.

IV. US Policy Initiatives

USG and GOA law enforcement cooperation is good.  During 1994, Austria extradited to the United States an individual who was wanted on drug trafficking charges.  The USG has no counternarcotics programs with the GOA, however, in 1994 Department of State counternarcotics officials met with their GOA counterparts to coordinate anti-drug policy related to smuggling from Austria's eastern neighboring countries.

The Road Ahead.   The USG will continue to urge Austria to ratify the 1988 UN Convention, and to continue negotiations on an updated extradition treaty.  The USG will also encourage Austria's continued support for and participation in international drug control organizations, such as the UNDCP. 


THE BALTICS

ESTONIA, LATVIA, LITHUANIA

I.Summary

The drug trade is expanding in the Baltic States of Estonia, Latvia, and Lithuania.  Organized criminal groups from this region are deepening their involvement in the illicit drug trade and establishing closer links with criminal organizations in the West and the former Soviet Republics.  The open borders and proximity to markets in Scandinavia have prompted Southwest Asian heroin trafficking networks to expand routes into the Baltic states.  Illicit amphetamines produced in Latvia continue to show up in West European markets.  Health authorities in all three countries believe that while drug abuse is on the rise, it is still a relatively minor problem and there are few available statistics.  While some small amounts of traditional cultivation of opium poppy and cannabis are common to the region, it is recognized as a problem only in Lithuania and there are no available statistics on the extent of such cultivation.  Production and use of synthetic drugs is a concern, but there is no evidence of a significant increase in 1994.

Economic and political issues continue to dominate the three governments, limiting high-level attention to the expanding drug problems.  There are some nascent signs that the three Baltic nations are increasing their antidrug efforts.  Manpower and resource shortages continue to hamper progress towards establishing domestic antidrug strategies, but the biggest drawback is the lack of political commitment for a national counterdrug strategy.  In Latvia, for instance there is little effort to interdict illicit drug shipments and most signs of increased smuggling through the region are coming from drug investigations in Western Europe.  All three countries began to take some steps in 1994 towards strengthening legal or institutional deterrents to drug trafficking and began to show concern over the potential for laundering money through their vulnerable banking systems.  Yet there is little information on the extent of money laundering operations.  Of the three countries, only Latvia is a party to the 1988 UN Convention.  Estonia and Lithuania are moving towards accession to this convention.  

ESTONIA

II.Status of Country

While domestic substance abuse, cultivation and production are still minimal in Estonia, the criminal problems associated with trafficking and money laundering are growing steadily.  Estonia's location between Russia and the Nordic countries and its modern transportation links make it attractive to drug traffickers for smuggling operations.  Most of the drugs transiting through or brought to Estonia originate in Russia, Transcaucus, Ukraine, Lithuania, Latvia, Afghanistan and the Middle East.
 
Various organized crime groups, primarily from Russia and Central Asia, are involved in illicit drug trafficking.  Estonian authorities report that drug groups from Afghanistan, Pakistan and Turkey have also been active in their country.  The majority of the drugs enter Estonia via railway from Russia and are transhipped out of Estonian ports.  The Baltic highway, linking Europe and Scandinavia through the Baltic States, is also used to smuggle drugs through Estonia.  According to police statistics, about 50 kilos of narcotics were seized on the Estonian portion of the Baltic highway in 1994.

Estonian police officials regard money laundering as the most serious drug related problem.  Hard currency is auctioned and freely exchanged in Estonia and enforcement techniques and experience with money laundering are lacking.  There is new legislation which addresses money laundering, but the legislation does not permit the right of access to bank accounts of suspected drug traffickers.

Domestic cultivation of illegal narcotic substances is negligible due to climatic conditions.  While there are no reports of trafficking in precursor chemicals, the handling of such chemicals in Estonia is mostly uncontrolled due to absence of relevant legislation.

III.Country Action Against Drugs in 1994

Since regaining independence in 1991 Estonia has devoted considerable resources to rebuilding its national institutions, including the police force.  Narcotics problems, thus far, have not received high priority.  New criminal and administrative codes, in effect since 1992, lack many basic drug provisions.  Expert advice and model laws were made available by UNDCP in 1993/94, but no action to revise existing codes has yet been taken.  The police have prepared a strategic narcotics plan, but it has not yet been approved by the Government of Estonia (GOE).

A special unit within the Central Criminal Bureau of the Estonian State Police Board exists to combat organized crime, including drug trafficking.  There are also police officers in every prefecture charged with responsibility for drug-related crime.  While the Police have carried out some drug operations in cooperation with Customs, there is no interministerial  coordination mechanism.  During the period 1987 to 1994 the Estonian police recorded 332 drug cases, including 40 in 1994 with 12 convictions.  The GOE has a limited drug abuse treatment program and recognizes the need for greater public awareness of the danger from drug abuse.

Corruption.  The USG is unaware of any reports of official narcotics-related corruption in Estonia in 1994.

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.  While the GOE has signaled its intention to become a party to these conventions, it made no progress towards this end in 1994.  Estonia is the only Baltic state that has joined the agreement among the police forces of the CIS states on coordination of operational drug activities and exchange of drug intelligence information.  A Mini-Dublin Group was established in Estonia in September 1994.

LATVIA

II.Status of Country

Latvia's location and transportation network make it attractive  for smuggling drugs to Western and Nordic Europe.  Road, rail, ship and air transportation lines through Latvia connect the drug producing nations in Asia and the former Soviet Union to their  markets in Europe.  However, actual reports of cases of international drug trafficking through Latvia in 1994 were limited to anecdotal accounts of heroin transhipments and one controlled purchase of cocaine in early 1994.

Domestic trafficking is marked by seizures of poppy straw and dried and liquid extract, as well as small amounts of hashish and marijuana, all believed to be smuggled into Latvia from Lithuania and Ukraine.  Latvian authorities do not consider the limited domestic cultivation of opium poppy, mainly used for cooking and baking purposes, to be a serious drug threat.

GOL authorities believe that illicit amphetamine production continues in Latvia.  While there are no quantitative data available, the capacity and organization of the producers does not approach the serious level of the 1992 "Latvbiofarm" cases.  There were two reported deaths in 1994 from the use of the locally produced drug "ecstacy".  Seizures of the stimulant ephedrine were recorded in 1994.  Latvia has a national licit drug control system which includes control measures for import and export of precursor chemicals.  While this system is operative, it is apparent that more resources are required if it is to be fully effective.

The growth of Russian and Latvian organized crime elements is having a signficant impact on the drug trade.  Police estimate that twelve organized crime groups control narcotics trafficking in Latvia.  Drug-related crimes are on the increase, and exceed the growth of the general crime rate.  In the first half of 1994 drug crimes were already 20 percent over 1993 figures.

Latvia's position as a regional banking center make it particularly attractive to money laundering.  The absence of strict banking accountability and weak regulatory and enforcement capabilities are added inducements.  Nevertheless, there is little information on the extent of any money laundering operations.  

III.Country Actions Against Drugs in 1994

The Government of Latvia (GOL) is a party to the three major UN drug conventions, but has not taken the necessary steps to implement them.  The delay can be attributed in part to the governmental crises this past summer, when the government fell and a new government was formed.  

The national licit control system, set up in 1993, was strengthened with a new national law and procedures linking related law enforcement and health agencies to the Licit Drug Control Committee established within  the Ministry of Health.  In February 1994, the Ministry of Interior formed the Drug Enforcement Bureau (DEB) within the Police Department.  The DEB, with a staff of approximately 40, is the chief investigative and operational body in the field of drug enforcement, and was created to coordinate the counternarcotics related activities of the Police, Border Guards, and Customs.  The GOL operates substance abuse centers and funds several non-governmental demand reduction programs and treatment centers.  Health official recognize a need for preventive education.

Despite continued reports from Western authorities that illicit drugs seized in Western Europe have transitted Latvia, there were no major narcotics seizures in Latvia in 1994.

Corruption.  The USG is unaware of any cases of drug-related corruption of senior Latvian officials in 1994. 

Agreements and Treaties.  The GOL became a party to the 1988 UN Convention in 1994, and to the 1961 Single Convention, its 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances in 1993.  The GOL has prepared draft implementing legislation to achieve compliance with the Conventions, but it has not yet been submitted to Parliament.

In 1994 a Mini-Dublin Group was formed in Riga to work with the GOL in its counternarcotics programs.  There is a pending request from the GOL for a Mutual Legal Assistance Treaty with the USG.

LITHUANIA

II.Status of Country

Difficult economic circumstances and a marked rise in the overall crime rate have stimulated drug trading and drug abuse in Lithuania.  The police note that organized criminal gangs have increased their involvement in the local narcotics business.  It is estimated that every tenth criminal gang (the authorities believe there are 200) is to some extent associated with the narcotics trade.  Local criminal groups are beginning to establish links with criminal elements, both in the West and in the former Soviet republics, and smuggled drugs are transiting Lithuania in both east-west and north-south directions.  

Government of Lithuanian (GOL) officials indicate that for the first time since independence was established they have detected local organized crime interest in cocaine trafficking.  Some modest quantities of cocaine are being smuggled through Lithuania, either from Germany to Russia or in the reverse direction.  Medical authorities registered one cocaine overdose in 1994.

The most widely used and traded drugs are opiates and their derivatives and marijuana.  Marijuana consumption continues to increase markedly -- 27 kilos of the substance were seized through November 1994, compared to a total seizure of 5 kilos for the same period in 1993.  The police note that hashish, ephedrine, ephedrone, phentanile and metandrostenolon are also frequently abused.
 
The regulation of Lithuania's private banking sector is still in a formative stage, making it increasingly vulnerable to money laundering operations.  Parliament did pass a commercial banking law and legislation on income and asset declaration for tax purposes in 1994.  

III.Country Action Against Drugs in 1994

In early 1994 Lithuania acceded to the 1961 and 1971 UN Drug Conventions.  Efforts are underway to draft the required legislation for the implementation of these conventions and to prepare for accession to the 1988 UN Convention.  Criminal laws and penal codes have already been amended to address organized crime and law enforcement operations.  Issues still to be addressed include money laundering and precursor chemicals.

The GOL intensified its counternarcotics effort in 1994 as evidenced by a growing number of seizures of a variety of illicit drugs.  These included 800 kilos of poppy straw (864 kilos in 1993), 25,595 mililiters of opium extract (634.7 ml in 1993), 1,144.6 grams of pure opium (225 grams in 1993), 3,513 grams of ephedrine and 147 mililiters of ephedrone.  The GOL's fledgling national health program includes drug demand reduction, rehabilitation and public education.

Cultivation/Production.  There are reports of increased illicit cultivation of opium poppy and cannabis, particularly in and around the Kaunas region.  Law enforcement authorities stepped up their eradication operations in 1994, and for the first time employed aircraft of the Defense and Interior Ministries to spot areas of cultivation.  The police destroyed poppy plants in a growing area of some 50,000 square meters.  An additional 500 square meters of cannabis plots were destroyed.  No information is available on the production, trade and possible diversion of licit narcotic drugs and precursor chemicals to illicit channels.

Corruption.  There were no reported cases of high-level official corruption associated with the drug trade.

Agreements and Treaties.   Lithuania is a party to the 1961 Single Convention (but not its 1972 Protocol) and the 1971 UN Convention on Psychotropic Substances.  Preparations are underway for accession to the 1988 UN Convention.  A Mini-Dublin Group was formed in Vilnius in 1994.

IV.  US Policy Initiatives and Programs

The USG continues to maintain a countenarcotics dialogue with each of the Baltic governments focused on identifying existing problems, possible areas for assistance and the need to become a party to and implement the relevant UN Conventions.  Participants from the three Baltic countries attended Department of State funded law enforcement, customs and demand reduction training courses.

The Road Ahead.  The USG will continue to encourage the Baltic States to expand their drug control activities and to establish the necessary legislative and institutional antidrug framework.  The USG will also continue to offer bilateral law enforcement training to each of the Baltic nations and encourage increased UNDCP assistance to all three countries. 


BELARUS

I.  Summary 

Drug trafficking groups are stepping up efforts to expand smuggling operations through Belarus and domestic drug use is increasing.  Belarus has emerged as a transshipment point for drug smuggling operations from Central Asia and the Caucasus to Western Europe.  Domestic cultivation of opium poppy and cannabis fuels in-country drug abuse.  Possession of drugs for personal use is still legal.  There has only been limited progress on enacting a comprehensive antidrug strategy, and efforts to change domestic legislation to promote the implementation of the 1988 UN Convention were stymied by a change in administration and inattention to the issue.  However, there are hopeful signs of increased official awareness and attention to the drug problem.  Belarus with the support of UNDCP has begun to enhance its law enforcement capability and to improve control measures to combat drug trafficking.

II.Country Status

Belarus' location between Poland and Russia, combined with a relatively modern transportation system and weak border and customs controls, make it vulnerable to drug smuggling operations.  Heroin trafficking organizations often move their cargoes from Afghanistan, Iran and Pakistan, via Russia, through Belarus into Poland and Western Europe.  They also smuggle narcotics through other Newly Independent States, including Ukraine, and those in Central Asia, Transcaucasus and Russia.  Belarus authorities believe that such operations include opium, marijuana, hashish and, for the first time in 1994, heroin.  

Authorities have also noted a dramatic increase in drug-related crime in Belarus.  For instance, 777 such crimes were committed in 1992, but 1,401 in 1993.

Drug use is also expanding.  GOB authorities calculate that there are approximately 15,000 drug users in Belarus out of a population of 10 million, and predict this number will reach 90,000 by the year 2000.  There were 2465 registered drug users/addicts in country in 1993.  The most prevalent drug is a home produced opium extract from poppy straw (70%), followed by marijuana and hashish.  Use of ephedrine is also increasing.  Authorities report that use of heroin and amphetamines from St. Petersburg are also on the rise.  

Drug cultivation, including opium poppy and cannabis is illegal in Belarus.  Nevertheless, poppy has traditionally been used in cooking and many continue to defy the ban on cultivation.  While there is no reliable information on the extent of cultivation, the MVD claims to have discovered more than 5,300 plots of opium poppy and cannabis in 1993, covering more than 19,000 square meters. Also, authorities estimate 6000 square meters of illegal cultivation in the "dead zone" of land contaminated with radiation from Chernobyl. 

While there are no reports of drug-related money laundering, GOB authorities indicate that laundering such funds would not be difficult in the country's new banking system. 
 
III.  Country Action Against Drugs in 1994

The GOB made little progress against the escalating drug situation in 1994.  Presidential elections and the change of administration hampered many legislative projects in Belarus, including crime and counternarcotics legislation.  However, a draft of the new Penal Code which includes a chapter on drug related crimes was approved by the parliament in the first reading. A draft National Anti-crime Program includes proposals on anti-narcotics activities.  Redrafting of legislation to criminalize possession and individual consumption is underway.  Moreover, the new president proposed the establishment of a fund for drug enforcement financed by sales of confiscated goods.  

Moreover, although drug seizures increased in 1994, little effort was made by the key drug law enforcement apparatus the MVD's Criminal Investigation Service (CIS), the MVD border Guards, the State Security Committee (KGB) and Customs Committee to coordinate their activities.  Authorities report several record drug seizures including 2 metric tons of hashish enroute to Germany and 2.4 metric tons of hashish seized in the town of Brest on the Polish border.  Another 2.1 metric tons, following the same route, was seized in Poland.  Drug seizures by the police, primarily of opiates, increased to over a metric ton in 1993, up from 253 kilos in 1992.

Demand reduction programs are fairly limited.  However, the Ministry of Health provides 13 specialized narcological centers and 17 asylums where drug addicts are given assistance.  Drug prevention education is part of the national curricula of secondary and technical schools and basic training on drug education is provided to teachers, doctors, nurses, pharmacists and law enforcement officials.

Corruption.  There have been no reported charges of public corruption, although anecdotal reports suggest customs officials and border guards may augment their low salaries by accepting bribes from narcotics smugglers.

Agreements and Treaties.  Belarus is a party to the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs as amended by the 1972 Protocol, and the 1971 Convention on Psychotropic Substances.  Belarus signed an agreement in 1993 on drug control assistance with Italy, and plans to conclude similar agreements with Austria, Bulgaria, Sweden and Germany.

The GOB has also signed bilateral treaties on assistance with Lithuania and China, and Belarus is a party to the Commonwealth of Independent States Convention on Legal Assistance.  In 1993 Belarus became a member of Interpol.

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  In 1994 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 promoting antidrug cooperation by those nations, primarily in Western Europe, most directly effected by heroin smuggling through Belarus.   
 
Against this backdrop, the USG provided INL-funded assistance through the US Drug Enforcement Administration and US Customs Service.  The USG through INL also earmarked funds for a UNDCP project now underway in Belarus which will cover all aspects of drug control, including licit drug use and money laundering.  The project will provide a centralized resource for drug interdiction efforts in Belarus as well as a framework for further multilateral and bilateral drug and law enforcement assistance.  

The Road Ahead.  The USG will continue to encourage Belarus to expand its drug control efforts and to improve its institutional law enforcement capacity.  While the USG will provide some limited bilateral training in 1995, we will urge the West European nations most directly affected by the drug traffic through Belarus to provide bilateral and multilateral counternarcotics assistance to Belarus. 


BELGIUM

I. Summary

Belgium is mainly a transit country for illicit drugs bound for larger markets in Western Europe.  Belgian law enforcement authorities are concerned about an increase in heroin trafficking from Turkey and from the former Soviet Union states.  Belgium has a small heroin addict population, but authorities are concerned about increasing use of synthetic drugs from the Netherlands.

Money laundering is not a significant problem in Belgium.  The Financial Police Unit in the Ministry of Finance referred 81 cases of suspicious transactions to prosecutors in the first 10 months of 1994.

Belgium is not a producer of illicit drugs, or of precursor chemicals used in the manufacture of illicit drugs.  The Government of Belgium's (GOB) chemical export laws conform to the European Union's (EU) directive on chemical control.

The GOB has signed, but not ratified, the 1988 UN Convention.  Ratification has been postponed by the government's constitutional reforms which have devolved significant responsibilities to the regional communities (states); they have not modified their laws to conform to the Convention.

GOB and USG law enforcement cooperate closely, and the two governments consult on international drug policy matters in international drug control organizations, including the Dublin Group.

II.  Status of Country

The Belgian government does not maintain statistics on drug use, but authorities believe that the number of heroin users has stabilized.  Authorities are concerned about an increase in synthetic drug use, particularly "ecstasy" and LSD.

Belgium's large port facilities (Antwerp is Europe's second busiest port), excellent transportation infrastructure, and central location in Western Europe make it an attractive transit point to the rest of Europe for illicit drugs and precursor and essential chemicals. 

The Special Unit in the Ministry of Finance, organized in 1993, reviews suspicious transactions reported by banks and other financial institutions.  A majority of laundered currency enters Belgium from the UK and is converted into Dutch guilders before being moved on to the Netherlands.  Belgium is a member of the Financial Action Task Force (FATF) and its laws conform with the EU directive on money laundering.  Belgium has asset forfeiture legislation, but does not have a system of sharing the assets with other foreign governments.
 
III. Country Actions Against Drugs in 1994

Policy Initiatives.  The Ministry of Justice, in an effort to improve international counternarcotics coordination, opened drug liaison offices in the capitals of Germany, the US, Italy, Spain and The Netherlands in 1994.  These are in addition to offices in Colombia, France and Vienna.  The Ministry plans to open offices in Moscow, Istanbul, London and Ottawa in 1995.

Belgium is a member of several international antidrug organizations, including the Heads of European Narcotics Law Enforcement Agencies (HONLEA), the Dublin Group, the FATF and the UNDCP.  Belgium contributed approximately $900,000 to UNDCP in 1993 (1994 figures are not yet available).

Accomplishments.  The Belgian parliament passed legislation authorizing the use of wiretaps in criminal investigations, an important step in assisting law enforcement authorities investigate suspected drug traffickers. 

Belgium and the Netherlands signed an agreement requiring the Dutch to reduce the number of coffee houses where cannabis products are sold, and to prohibit the sale of such drugs to foreigners, including Belgians.

Agreements and Treaties.  Belgium signed the 1988 UN Convention, but has not yet ratified it because of Belgium's constitutional restructuring which shifted significant powers to regional communities; they must revise their laws to implement the Convention's objectives.  Belgium is a party to the 1961 Single Convention and its 1972 Protocol.

The US and Belgium have an updated extradition treaty signed in 1987, but it has not been ratified, due to Belgian concerns about the USG position on the abduction of fugitives.  The Belgian government in late 1994 signaled its readiness to proceed with ratification.  Belgium concluded a mutual legal assistance treaty (MLAT) with the US in 1988 and is expected to ratify it in 1995.

Law Enforcement Efforts.  The Judicial Police and the Gendarmerie (national police) cooperate closely and are effective and efficient.  In the first 10 months of 1994, GOB law enforcement authorities seized 335 kgs of cocaine (total 1993 seizures of 2,891 kgs included a single seizure of 2,225 kgs), as well as 123 kgs of heroin (52 kgs in 1993).  Authorities arrested 13,406 suspects for drug-related offenses in 1994 versus 15,670 in 1993.

Corruption.  Corruption is not a problem in the Belgian public service or among law enforcement agencies.  There were no reports of drug-related corruption by public officials in 1994.  There are effective laws to combat and punish corruption.
 
Cultivation/Production.  There is no significant cultivation or production of illicit drugs in Belgium.

 Drug Flow/Transit.  Belgium is an important transit point for drug traffickers because of its good port facilities, its airports, and its excellent road connections to neighboring European countries.  Most illicit drugs enter Belgium through the ports of Antwerp and Bruges, across the border with the Netherlands, and through the Brussels airport.  Belgian authorities believe drug traffickers smuggle their products into Belgium from Istanbul via Romania, Bulgaria and Italy.  Authorities report increasing heroin traffic through the Baltic ports, particularly Riga in Lithuania.

Demand Reduction.  The Belgian government has an active drug abuse program.  Belgium schools teach the dangers associated with drug use.

IV. US Policy Initiatives and Programs

Bilateral Cooperation.  USG law enforcement agencies (DEA and the FBI) cooperate closely with Belgian law enforcement and judicial authorities.  In 1994, the USG hosted visits by several Belgian law enforcement officers and magistrates to participate in US seminars on narcotics and other law enforcement matters.

Road Ahead.  The USG will encourage the Belgian government's active participation in the Dublin Group, Financial Action Task Force, its support of UNDCP's programs and continued close bilateral cooperation on law enforcement matters.  The USG also will urge the GOB to ratify the updated extradition treaty and MLAT it concluded with the US 


BULGARIA

I.  Summary

Bulgaria is increasingly one of the most important conduit nations for Southwest Asian heroin operations seeking markets in Western Europe.  In 1994, drug traffickers continued to use Bulgaria as a means to circumvent the once traditional smuggling routes through Serbia.  Traffickers diversified their operations and established new smuggling routes.  Domestic drug use, while still relatively low, is increasing.  The Government of Bulgaria (GOB) has begun to develop a national counternarcotics campaign and law enforcement authorities are increasing cooperation with the USG and West European authorities.  Nevertheless, the GOB still lacks key counternarcotics and criminal legislation to thwart drug trafficking operations in Bulgaria.  Moreover, possession of drugs remains legal in Bulgaria.

II.  Status of Country                       

Bulgaria is primarily a conduit for drug traffickers smuggling heroin to the West.  However, increased heroin smuggling through the region and weak penalties for trafficking and distribution have fueled drug abuse in Bulgaria, particularly among youth.  Trafficking groups appear to be expanding local distribution.  The incidence of drug abuse in Bulgaria is low but increasing and heroin is increasingly used by a younger crowd.  Narcotics are available at relatively low street prices.  Bulgarian authorities estimate that there are 3,000 to 5,000 hard core addicts and 15,000 to 20,000 drug users. 

Bulgaria's central location on the Balkan peninsula makes it increasingly attractive as conduit for smuggling drugs to Western markets.  The large number of bonded (TIR) trucks that transit the "Balkan route" increases Bulgaria's attractiveness to traffickers; the Kapitan Andreevo control post on the Turkish border processes 1,000 vehicles daily.  The imposition of sanctions on Serbia has prompted drug traffickers to shift their smuggling from Serbia to Romania or the former Yugoslav Republic of Macedonia.  Both of these newer routes emphasize increased use of Bulgaria as a transit area.  There are indications that air and sea smuggling is also common.

Drug trafficking in the region once controlled primarily by Turkish and Iranian groups now includes other networks run by expatriates from former Socialist countries or the Golden Crescent countries.  Bulgarian nationals have also been drawn into the drug trade.  Colombian drug barons are also continuing efforts to establish a foothold in Bulgaria.  Routes West through Bulgaria to the former Yugoslav Republic of Macedonia (FYROM) are also being reestablished.  

Although Bulgaria is not a major producer, the press reported illegal opium cultivation in the southwestern region in 1994.  Bulgarian officials are concerned about the production of precursor chemicals and their illegal shipment from Bulgarian chemical companies.
 
GOB officials believe the state of flux in the banking and financial sector and the absence of comprehensive legislation has increased opportunities for money laundering.  Moreover, the collapse of communism led to the formation of private protection or security businesses that established and enforced their own codes.  According to GOB authorities these security groups are already laundering funds and maybecome involved in drug money laundering in a much bigger way.  To date, however, GOB authorities do not have information on the extent of such operations.

III.  Country Actions Against Drugs

Policy Initiatives.  The GOB is moving slowly to develop a domestic counterdrug strategy through the Interministerial Council for Drug Matters chaired by the Minister of Health.  Following accession to the 1988 UN Convention last year, the government drafted a revised criminal code which was expected to be introduced to Parliament last Spring.  It is now expected to go to Parliament later this year.  Meanwhile, the GOB is relying on existing legislation and administrative procedures to the extent possible in implementing the 1988 UN Convention.  The GOB anticipates a heated debate in Parliament over the criminal code because it includes criminal penalties for drug use and there is a strong movement to legalize drug use.

On balance the GOB has begun to take some legislative changes.  In May 1994, the GOB promulgated the text of the 1990 Council of Europe Convention on laundering, search, seizure, and confiscation of proceeds from crime in the state gazette, thereby making it a part of Bulgaria's body of domestic law. 

Law Enforcement Efforts.  The Ministry of Interior's Central Service for Combatting Organized Crime and Narcotics Trafficking has increased its investigative capabilities over the past year.  This office also coordinates investigations on drug-related issues such as official corruption and money laundering.  This office is continuing to work with the US on drug-related cases.  

Bulgarian authorities report that increased drug seizures show greater smuggling operations and increased participation in criminal activities by Bulgarian citizens.  Customs officials have seized over 780 kg of illegal drugs in 1994, and police have seized approximately 140.   Bulgarian authorities are increasing cooperation with European law enforcement agencies to thwart efforts by West European criminal organizations to obtain precursor chemicals in Bulgaria.  

Corruption.  The Ministry of Interior's Central Service for Combatting Organized Crime and Narcotics Trafficking coordinates investigations on drug-related issues, including official corruption and money laundering.  The USG has no information that senior GOB officials are involved in drug trafficking, but there are some unconfirmed reports of corruption at the working level.

 Agreements and Treaties.  Bulgaria is a party to the 1988 UN Convention, the 1961 Single Convention and 1972 Protocol thereto, and the 1971 Convention on Psychotropic Substances.  In May 1994, the GOB promulgated the text of the 1990 Council of Europe Convention on laundering, search, seizure, and confiscation of proceeds from crime in the state gazette, thereby making it a part of Bulgaria's body of domestic law. 

Cultivation/Production.  Law enforcement agencies reportedly  eradicated several hectares of illegal cannabis cultivation in 1994.  In addition, the GOB uncovered approximately 10 hectares of poppy cultivation in southwestern Bulgaria.  However, this cultivation has not yet been eradicated because Bulgarian law requires that prosecutors prove intent to produce illegal substances before the cultivation can be eradicated. 

Domestic programs.  Although demand reduction programs are not a high priority, the National Center for Addiction recently developed a new treatment center.  Educational programs are being developed and implemented in high schools, and the center is working on similar programs for university level students.

IV. US Policy Initiatives and Programs   

Policy Initiatives and Bilateral Cooperation.  The USG promotes increased GOB attention to the drug problem.  The USG will continue to promote antidrug cooperation by those nations, primarily in Western Europe, most directly affected by heroin smuggling through Bulgaria.  Against this backdrop the USG increased cooperation with Bulgaria's antidrug agencies in 1994.  The USG has provided INL-funded training assistance through the US Drug Enforcement Administration (DEA) and US Customs Service.

Bilateral cooperation.  In July 1994 the US State Department provided the Bulgarian Central Service for Combating Organized Crime with equipment to improve communication on drug cases throughout Bulgaria.  Bulgarian counternarcotics officials received training in the US on forensics and other law enforcement topics in 1994.

The Road Ahead.  The biggest challenge confronting Bulgaria is the expansion of the heroin trade into and through the country.  The USG will continue to encourage the GOB to bolster its antidrug campaign.  During 1995, bilateral USG support will focus on assisting Bulgaria to develop the necessary legal infrastructure to implement the 1988 UN Convention and effectively fight narcotics trafficking.  In addition, INL will continue to provide limited law enforcement and demand reduction training, and equipment to assist Bulgaria's antidrug campaign.  

[CHART:  BULGARIA STATISTICAL TABLES]


CYPRUS

I.Summary

Cyprus' location in the Eastern Mediterranean and its well developed business, tourism, and communications infrastructure make it a popular meeting point for drug traffickers.  Cyprus strictly enforces tough antidrug laws in accordance with the 1988 UN Convention, which it ratified in 1990.

Cyprus police and customs authorities cooperated closely with United States authorities in 1994.  Cyprus officials are concerned that Cyprus' offshore business sector is being used for international money laundering activities, and monitors some monetary activities to deter such activities.

II.Status of Country

Cyprus' location in the Eastern Mediterranean and its close proximity to Lebanon and Turkey make it a convenient transit point for Turkish and Lebanese narcotics traffickers.  Cyprus' highly developed business and tourism facilities, a modern telecommunications system, and a large merchant shipping fleet further attract traffickers to Cyprus.  Traffickers conceal heroin and cannabis resin in the substantial container traffic transshipped through Cyprus, and take advantage of air connections to transship drug-related currency to and from Europe.

Although the Government of Cyprus (GOC) does not collect statistics on drug use, authorities believe drug use in Cyprus is relatively low.  Hashish is the most commonly used drug, followed by heroin and cocaine.

Cyprus has also attracted over 15,000 offshore companies from all over the world, over 2,000 of which are Russian.  Cyprus' success as an international offshore center has made it vulnerable to international money laundering activities, particularly by the Russian mafia, and other organized crime groups.  The Cyprus Central Bank monitors monetary activities to deter money laundering, but must rely on enforcement of banking regulations to do so.  Cypriot law does allow for the confiscation of drug-related profits, though this law has not been actively utilized.

GOC customs officials, in cooperation with USG authorities, attempt to monitor the flow of precursor chemicals that transit Cyprus to Lebanon.  GOC officials work closely with chemical brokers in Cyprus to monitor chemical shipments.  Cyprus authorities believe diversion of chemicals to illicit drug manufacturers is not a significant problem.

IIICountry Action Against Drugs in 1994

Policy Initiatives.   The Cypriot legislature is reviewing a bill to allow "controlled delivery" of narcotics for drug-trafficking law enforcement investigations and is expected to vote on it in 1995.
 
Accomplishments.   In December, the GOC's Central Bank issued regulations extending bank compliance officers' responsibilities to include anti-money laundering procedures.  In September, the Cyprus police force organized a task force of financial investigators and Central Bank officials to identify fraudulent financial activtities.

The GOC also signed separate bilateral counternarcotics cooperative agreements with the governments of Egypt and the United Kingdom in 1994.

Agreements and Treaties.  The GOC ratified the 1988 UN Convention in 1990 and is generally meeting the Convention's goals and objectives.  The GOC is also party to the 1961 Single Convention, the 1972 Protocol, and the 1971 Convention of Psychotropic Substances.  Cyprus cooperates closely with the USG under the 1987 USG-GOC Customs Mutual Assistance Agreement.

Law Enforcement Efforts.  Narcotics laws are enforced strictly in Cyprus.  Cyprus police and customs authorities maintain excellent relations with United States and other foreign government officials.  Domestic law enforcement cooperation is limited by the de facto division of northern Turkish speaking Cyprus, an area beyond the GOC's control.  Authorities in the government controlled areas have no direct working relations with enforcement authorities in the "Turkish Republic of Northern Cyprus" or with Turkey.  Turkish Cypriots have their own law enforcement organization, responsible for the investigation of all narcotics related matters and have carried out seizures and other enforcement activiites in the northern part of Cyprus.

GOC officials are concerned about rising drug-related crime.  At the end of September 1994, Cyprus police arrested 166 people on drug-related charges, compared with 123 in all of 1993.  Cypriot sentencing guidelines call for a maximum prison term of one year for drug users under 25 years of age with no police record.  Sentences for drug traffickers range from four years to life, depending on the substances involved and the offender's criminal record.  

In 1994, GOC authorities seized 5 kilograms of cannabis (compared to 15 kilograms on 1993), 2.6 kilograms of heroin (compared to 1 kilogram in 1993) and .04 kilograms of cocaine (compared to 4.9 kilograms in 1993).

Corruption.  Corruption among public officials is not a problem in Cyprus.  There are no recorded cases of senior government officials involved in narcotics trafficking-related activities.

Cultivation/Production.  GOC officials believe small amounts of marijuana are cultivated for personal use.  The USG is not aware of any other production or cultivation of drugs in Cyprus.

Drug Flow/Transit.  The Cyprus police believe illicit drugs, particularly heroin, transit northern Cyprus from Turkey to other parts of Europe.  Cyprus is also a transit point for cocaine transported by commercial air from Brazil to Cyprus and destined to the Middle East and countries of the former Soviet Union. 
 
Demand Reduction Programs.  Recent increases in drug use prompted the GOC to focus more attention on demand reduction efforts and education.  In 1994, the GOC increased the number of drug abuse consultative centers in Cyprus.

IV.  USG Policy Initiatives and Programs

In June 1994, the Drug Enforcement Administration (DEA), in cooperation with INL, held two seminars on money laundering for 70 bank officials.  DEA also provided money laundering training to Cyprus police  officials.  In September, DEA, in conjunction with INL, held a drug enforcement seminar for officials of the Cyprus police and customs service.

The GOC and USG are negotiating an updated extradition treaty that would supersede the existing one.  A memorandum of understanding on the treaty was initialed but the treaty has not yet been concluded.

The Road Ahead.  The USG looks forward to continued good law enforcement cooperation with the GOC.  For the coming year the USG will encourage further efforts to deter money laundering activities in Cyprus, and will continue negotiations on an updated extradition treaty.


CZECH REPUBLIC 

I.  Summary

Drug trafficking organizations accelerated their efforts to target the Czech Republic in 1994.  Seizures indicate that a variety of trafficking organizations use the Czech Republic to move Southwest Asian heroin to West European markets.  Significant new drug markets--primarily of heroin--also are emerging throughout the Czech Republic.  Increased availability, low prices, and legislation which allows drug possession have attracted drug tourists from Germany and Austria.  According to Czech officials, there also is continuing production of illicit amphetamines.  

The Government of the Czech Republic (GOCR) is increasingly concerned about the escalating drug trade.  As a result, it has stepped up efforts to strengthen its legislation, expand law enforcement activities, and increase implementation of the 1988 UN Convention.  

II.  Status of Country

The drug trade made further inroads into the Czech Republic in 1994.  Drug traffickers used the republic as a conduit to move Southwest Asian heroin and South American cocaine to Western European markets.  Czech police also reported increased cocaine smuggling through West and North Africa to Europe.  Czech officials believe that the republic is used by organized crime groups from the Newly Independent State (NIS) and the former Yugoslavia, as well as by Italian organized crime groups such as Camorra and the Sicilian mafia, and by other criminal organizations.

New drug patterns observed by the police in 1994 included amphetamines arriving from Poland by road; pervitin, a stimulant manufactured locally from ephedrine, spreading abroad, notably to Germany and Canada; and cocaine traffic from South America through Polish ports and on flights transiting Amsterdam to Prague.

Law enforcement officials believe that seizures, availability, and the low price of illicit drugs, particularly for heroin, indicate that drug trafficking organizations are expanding domestic markets.  Health authorities believe that the number of drug addicts increased between two- and six-fold from 1993 to 1994.  Drug abuse is particularly prevalent among school children 15 to 19.  Escalating drug abuse in rural areas poses a particular challenge to authorities, given the limited demand reduction programs in these areas.  Moreover, drug tourists from Germany and Austria appear to be attracted increasingly to the Czech Republic where heroin sells for one-third the amount in their own countries.

Although heroin and cocaine use are on the rise, amphetamines remain the  most popular drugs in the Czech Republic.  The government relaxed controls on chemicals used in the manufacture of illicit drugs, prompting an increase in illicit amphetamine production in the CSFR in 1992.  Czech officials believe that amphetamine production continues.
 
The Czech Republic is not an important regional financial center, but authorities do not know the origin of large amounts of available capital.  Moreover, although money laundering is a crime, there is stringent bank secrecy and controls are lax on the sources of funds invested in the economic privatization process.  Czech officials believe organized crime groups launder funds in the Czech Republic, but it is not clear to what extent the funds laundered are from narcotics trafficking or other activities.

III. Country Actions Against Drugs in 1994

The concerns of the government about the drug trade prompted a revision of its drug control strategy, which previously emphasized demand reduction.  The government expanded police efforts against trafficking, and adopted or proposed a series of legal steps and other programs.  Law enforcement efforts in the first nine months of 1994 increased significantly over 1993, and included seizures of 150 kgs of heroin and 70 clandestine laboratories.  Police investigations indicated that much of the drugs were for domestic use.  

The government raised the National Drug Commission (NDC), which coordinates the drug activities of nine ministries and departments, to the ministerial level.  The NDC is focussing on preparing legislation to target drug trafficking, money laundering, and the diversion of precursor chemicals.  The NDC forwarded bills to parliament establishing criminal penalties on money laundering, and requiring reporting of all financial transactions, as well as all cash transactions over 500,000 Czech crowns.  The bill, which is pending parliamentary action, also would establish a unit in the Ministry of Finance to analyze such transactions.

The GOCR also has taken steps to combat the amphetamine production.  In accordance with the republic's obligations under the three UN drug conventions, the Ministry of Health established in September a special unit to monitor legal drugs and precursor chemicals.  Five more essential chemicals were added to the list of controlled substances.  

In order to implement the 1988 UN Convention, the NDC in October announced plans to revise antidrug legislation.  The revisions would:  

--  allow provisions for controlled deliveries;  
--  criminalize all money laundering;
--  amend the penal code to penalize the possession of drugs for personal use;
--  control the production of legal drugs and ban the production of other types of drugs;   
--  monitor the export of precursor chemicals and pharmaceuticals.

GOCR efforts in demand reduction promoted an increase in public awareness and treatment outreach programs.  The Ministry of Health established a national coordinator for drug epidemiology to gain a better understanding of the extent of domestic drug abuse.  The ministries of Health and Education developed demand deduction prevention programs for teachers and hospitals and are supporting an media public awareness campaign.  Public and private treatment programs are available in the major cities.  
 
Corruption.  The USG is unaware of any reports of narcotics-related corruption among Czech officials.

Agreements and Treaties.  The Czech Republic intends to honor the UN 1961 Single Convention, its 1972 Protocol, the 1971 Convention on Psychotropic Substances, and the 1988 Convention.  The bilateral extradition treaty between the Czech Republic and the US is in effect and includes drug-related offenses under the terms of the 1988 UN Convention.

The Czech Republic also has ratified an agreement with the European Union which takes effect in February 1995; it provides for cooperation on organized crime and drug trafficking.

Cultivation/Production.  Authorities believe that there is extensive methamphetamine production, but most data is anecdotal.  Czech officials report that there were approximately 8,800 ha of opium poppy legally cultivated in 1994 for use in the pharmaceutical industry and for poppy seeds for the food industry; the hecterage devoted to poppies was expected to increase sharply to about 28,000 ha in 1995.  There is no information available on cannabis cultivation, but authorities note there is some cannabis cultivation for personal use.

IV. US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  In 1994, the USG promoted government attention to the drug problem.  The USG encourages antidrug support for the republic from those nations, primarily in Western Europe, most directly affected by drug problems in the region.  In November, a delegation from the Financial Action Task Force consulted with Czech counterpart agencies on methods to target money laundering.  Through UNDCP, INL contributed funds to strengthen the law enforcement and customs communication infrastructure, and to enhance surveillance and interdiction capabilities.  Additionally, INL provided training through DEA and US Customs.

The Road Ahead.  The USG will encourage Prague to expand its drug control activities, and to strengthen its institutional capabilities, including key drug control legislation, such as criminalizing drug possession.  INL will provide limited law enforcement training and equipment to assist the government in its antidrug campaign.  INL and UNDCP are co-funding the GOCR's participation in a regional demand reduction program in Sicily.   


DENMARK

I.  Summary

Denmark is a popular drug transit point for drugs destined to the Nordic region.  South American cocaine and Southwest Asian heroin traffickers use Denmark's excellent transportation system to move their products to Scandinavia, Western Europe and the US  Danish officials are concerned that narcotics use is spreading from large urban areas to small communities; they estimate that there are now approximately 10,000 addicts.  Heroin and hashish are the drugs of choice, but cocaine and amphetamines use is growing.  Law enforcement authorities seized over 9,000 kgs of hashish in 1994, ten times the amount seized in previous years. 

Denmark ratified the 1988 UN Convention in 1991.  Danish officials actively participate in international narcotics control fora, including the UNDCP. 

II.  Status of Country

Danish authorities estimate there are approximately 10,000 addicts.  However, Danish officials are concerned that cocaine and synthetic drug use may be increasing.

Denmark is not a significant money laundering center.  It is unlikely it will become one, given close government regulation of the financial sector, and the effective money laundering legislation passed in 1993.  Denmark has implemented the recommendations of the Financial Action Task Force (FATF) as well as the EU directive on money laundering.

The Danish government closely monitors exports of precursor and essential chemicals.  Danish chemical diversion to illicit drug manufacturers is not considered a problem.  Denmark's chemical control measures are in accordance with the EU directive on chemical control, and with the 1988 UN Convention.

III.  Country Actions Against Drugs in 1994

Policy Initiatives.  In conjunction with its Scandinavian neighbors, Denmark provides law enforcement training assistance to the Lithuanian police.  In 1994, it assigned an officer to Lithuania to oversee the training programs.
 
Danish officials are active in multilateral antidrug fora, including the Dublin group and the UNDCP.  Denmark contributed $1.3 million to UNDCP in 1994.

Accomplishments.  In December, the Danish police and DEA worked with the Latvian police which led to the first heroinseizure in Latvia.

Agreements and Treaties.  Denmark ratified the 1988 UN convention in 1991 and is meeting the convention's goals and objectives.  The USG and the Danish government have an agreement to exchange narcotics trafficking information and an extradition treaty dating from 1928.  Denmark is a party to the 1961 Single Convention and its 1972 Protocol, and the 1971 Convention on Psychotropic Substances.
 
Law Enforcement Efforts.  Danish law enforcement authorities are effective and efficient.  In the first 11 months of 1994, authorities seized 9,000 kgs of hashish (compared to 937 kgs in 1993), 27 kgs of heroin, (compared to 23 kgs in 1993), and 25 kgs of cocaine (versus 10 kgs in 1993).  Authorities arrested approximately 11,000 suspects for narcotics-related offenses (compared to 12,000 in 1993).
 
Danish law permits asset forfeiture and seizure in drug-related criminal cases; however, the government does not compile statistics on asset seizures.  Seized assets are turned over to the state treasury; Danish law does not permit the use of assets by law enforcement agencies, or the sharing of assets with other countries. 

Corruption.  Narcotics-related corruption is not a problem in Denmark.  Danish corruption laws deter public officials from facilitating the illicit production or distribution of drugs, or the laundering of drug money.  The USG is not aware of senior government officials involvement in drug-related corruption.

Drug Flow/Transit.  Drug traffickers use Copenhagen as a transit point for heroin from Southwest Asia to Scandinavia, Western Europe, and the US  Traffickers also use Denmark as a transit route for South American cocaine bound for other European countries.  Most drug seizures take place at Copenhagen's airport.

Cultivation/Production.  The manufacture and cultivation of narcotics is not a problem.  The USG is not aware of any cases of illicit drug production or cultivation in 1994. 

Demand Reduction Programs.  The Danish government has an active program to prevent drug abuse and treat addicts.  The Ministry of Education makes video tapes and other antidrug educational material for use by both teachers and students.  The school program is supplemented by counternarcotics programs in youth centers.  Drug abuse treatment is available at hospitals and communal institutions.

IV.  US Policy Initiatives and Programs

USG and Danish government law enforcement cooperation is excellent.  DEA works closely with the Ministry of Justice.

The Road Ahead.  The USG will encourage active Danish government participation in the Dublin Group and continued Danish support for the UNDCP.  The USG will look to expanding joint USG-Danish law enforcement efforts, particularly in the Baltic region. 


FINLAND

I.  Summary

Narcotics trafficking and usage is not a significant problem for the Finnish government.  In 1994 drug abuse remained low.  Also, Finnish authorities had little problem coping with the minor amount of trafficking which took place in this small, ethnically homogeneous and lightly populated nordic country.  The Finnish government has an efficient record in enforcing narcotics-related laws.  Demand prevention programs are pursued by the Finnish government.  The United States government supports Finnish narcotics enforcement by providing training for Finnish officials.  The Finns in turn are providing training to Estonian officials.

In 1994, Finland ratified the 1988 UN Convention, and also made money laundering a crime.  Finland also signed a narcotics enforcement cooperation agreement with Russia in 1994.

II. Status of Country

Finland produces neither narcotic substances nor precursor  and essential chemicals.  The Government of Finland (GOF) does not maintain statistics on drug use.  However, various government organizations are beginning to undertake surveys to determine the scope of the problem in Finland. 

In 1994 Finland designated money laundering as an illegal and punishable act.  Finnish officials believe little money laundering takes place in Finland.  Since January 1994, the GOF National Bureau of Investigation has received 75 reports of suspicious financial activity from financial institutions, and insurance companies.

Finnish national police and customs officials work closely  with all chemical brokers in Finland.  This close cooperation has prevented precursor and essential chemical diversion problems. 

II. Country Actions Against Drugs in 1994

In 1994 the Finnish National Police and the Russian Ministry of Internal Affairs (MVD) signed an agreement providing for joint counternarcotics efforts.  This agreement covers all types of criminal investigations.  Finnish officials also provided narcotics enforcement training for Estonian authorities in 1994, using USG training programs as a model. 

Finland provides small amounts of international counternarcotics assistance.  Over the past two years, anti-drug assistance has been limited to $23,000 contributed to the UN International Drug Control Program's narcotics laboratory in Vienna.

 Agreements and Treaties.  Finland ratified the 1988 UN Convention in May 1994, and its legislation is consistent with all the Convention's goals and objectives.  Finnish legislation covers the distribution, sale, and transport of narcotic substances, as well as extradition, law enforcement, transit cooperation, precursor and essential chemical control, and demand reduction.

Law Enforcement Efforts.  Finland has an effective and efficient law enforcement force.  The Finnish Customs Service and the police cooperate closely and adapt their tactics and operations to match changing criminal and smuggling trends.  In 1994 Finnish authorities seized 52 kilograms of hashish (compared to 106 kilograms in 1993), 5 kilograms of amphetamines (compared to 14 kilograms in 1993), .7 kg. of heroin (compared to .4 kilograms in 1993), and .03 kilograms of cocaine (compared to .006 kilograms in 1993).  They arrested 2,162 people on drug-related charges in 1994, compared to 2,188 in 1993.

Corruption.  Corruption among public officials is not a problem in Finland.  There are no recorded cases of government officials involved in narcotics trafficking-related activities.

Cultivation/Production.   The USG is not aware of any reported cultivation or production of illict drugs in Finland.

Drug Flow/Transit.  Finnish authorities are concerned about increased narcotics flows from the former Soviet Union.  However, drugs smuggled from the Netherlands are the primary source of narcotics in Finland.  The other principal sources are South America and Asia.  Most narcotics transiting Finland are destined for larger markets in Western Europe.

Demand Reduction Programs.   The Finnish government's anti-drug programs generally emphasize treatment rather than punishment.  The Finnish Ministry of Social Affairs and Health is involved in the drug use treatment and educational programs.  The agency focuses its prevention efforts on programs for students between the ages of 10-14.   

IV.  US Policy Initiatives and Programs

The USG offers drug-related training opportunities to Finnish officials.  In the last five years, Finnish police officials have attended a variety of relevant courses in the United States, including the international narcotics enforcements managers seminar and the international forensic chemists seminar sponsored by the Department of State.

In 1994, a member of the Finnish national police responsible for money laundering investigations  participated in a USG sponsored asset forfeiture and seizure seminar in Moscow for Newly Independent States officials.  Also in 1994, USG authorities worked closely with Finnish authortities in arranging a controlled delivery of heroin to a Nigerian trafficker attempting to operate out of Finland.  The operation led to the arrest of the Nigerian and the breakup of a newly organized drug network.

 The Road Ahead.  The USG looks forward to continued close law enforcement cooperation with the Government of Finland.  In 1995, the USG will continue to encourage the Finnish government to assist Estonia and other former Soviet Union countries develop effective counternarcotics programs.
 

FRANCE

I. Summary

France is an important transit country for drugs from the Middle East, Southwest Asia, and South America.  In 1994, French authorities seized a 1.2 mt cocaine shipment, the France's single largest cocaine seizure.  Heroin use is the French government's primary domestic abuse problem, but officials believe heroin seizure rates will keep increasing as well.  The Government of France (GOF) has increased the number of methadone treatment sites to treat heroin addicts.

The GOF is actively involved in international antidrug fora, including chairing the Dublin Group in 1994.  The GOF closely monitors the shipment of precursor and essential chemicals, and has adopted the European Union's (EU) directive on chemical control.  France has been a party to the 1988 UN Convention since 1990.

II. Status of Country

French authorities report drug-related deaths decreased in 1993 (454 cases versus 499 in 1992); however, they believe that heroin abuse is a serious problem, although 1994 statistics are not yet complete.  Officials are concerned that cocaine use, including crack, is growing, based on the increasing number of cocaine-related arrests (1,021 in 1993 versus. 950 in 1992).  Crack-related arrests increased to 300 in 1993 from 140 in 1992.

French authorities believe that there is laundering of drug proceeds, particularly through French bank branches in the Caribbean.  A French Finance Ministry office, TRACFIN, reviews suspicious transactions and refers cases to judicial authorities if money laundering is identified.

France produces some precursor and essential chemicals, but the French Customs Service closely monitors chemical shipments.  French precursor and essential chemical control laws are in compliance with the EU directive on chemical controls and with the 1988 UN Convention.

III. Country Actions Against Drugs in 1994

Policy Initiatives.  Revisions to the French penal code went into effect in March covering drug trafficking.  The revised code makes drug trafficking punishable by life imprisonment, and persons convicted of drug production can be jailed for up to 30 years.  Previously, drug trafficking was listed as a misdemeanor,  although traffickers usually were given lengthy sentences for other drug-related offenses.
France actively participates in a variety of international drug control fora, including the UNDCP, the Financial Action Task Force, and the Dublin Group.  It chaired the Dublin Group's two annual meetings in 1994.  Annual French expenditure in 1994 for overseas counternarcotics assistance was approximately $10 million, including a $2 million contribution to the UNDCP.

 Accomplishments.  In January, French authorities seized approximately 1.2 mt of cocaine in southwestern France, the single largest cocaine seizure.  The French drug control agency, the General Delegation for the Fight Against Drugs and Addiction (DGLDT), substantially expanded the number of methadone treatment sites for heroin addicts. 

Agreements and Treaties.  The GOF became a party to the 1988 UN Convention in 1990, and is fully meeting the Convention's goals and objectives.  The USG and the GOF have narcotics agreements, including a 1971 accord for coordinating action against illicit trafficking.  The USG and GOF also have an active extradition treaty; however, French law does not permit the extradition of French citizens, although French nationals  accused of drug-related crimes in the US can be tried and imprisoned in France.

Law Enforcement Efforts.  French law enforcement authorities are efficient and effective.   Official 1994 seizure statistics are not yet available, but authorities believe that total drug seizures will surpass those of previous years. Authorities seized 386 kgs of heroin in 1993, compared to 327 kgs in 1992, and 1,715 kgs of cocaine in 1993, compared to 1,625 kgs in 1992.  Crack cocaine seizures increased to 5 kgs in 1993 from 2 kgs in 1992.  Drug trafficking arrests increased to 6,451 in 1993 from 3,162 in 1992; over half the arrests were for heroin-related offenses. 

Corruption. Official drug-related corruption is not a problem in France.  The GOF 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.  The USG is not aware of any senior officials involved in the production or distribution of drugs or in money laundering.

Drug Flow/Transit.  Traffickers smuggle heroin from Pakistan, India, Sri Lanka, Lebanon, and Syria into France; some of it is consumed in France, with the remainder transiting to other European and North American markets.  Much of the drug trafficking is controlled by Nigerians.  France also is a growing transshipment 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.  France is also a transit route for hashish from Southwest Asia, particularly Pakistan,
Lebanon, and North Africa.
 
Cultivation and Production.  French authorities believe that illicit drugs are not manufactured or cultivated in the country, nor is the USG aware of any illicit drug cultivation or production in France. 

Demand Reduction.  The DGLDT is responsible for coordinating demand reduction programs; it has a budget of approximately $58 million, an increase from $44 million from 1993.   Much of the increase funded additional methadone treatment centers and drug prevention/education programs involving teachers, medical personnel, and the government.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  Counternarcotics law enforcement cooperation is good between the GOF and the USG.  The USG offers the French police opportunities to participate in money laundering and narcotics-related law enforcement courses.

The Road Ahead.  During France's presidency of the European Union Council in 1995, the USG will work with the GOF to ensure that US-EU counternarcotics cooperation are a priority.  The USG will encourage France to maintain its support for the UNDCP, its active participation in the FATF and the Dublin group, and greater French counternarcotics maritime cooperation in the Caribbean.


GERMANY 

I. Summary

The Federal Republic of Germany (FRG) is important both as a drug consuming and trafficking country.  German officials are concerned about an increase in narcotics from Central Europe and the former Soviet countries transiting Germany to other European markets.  Heroin use is Germany's most serious drug abuse problem, although cocaine and amphetamine use is increasing. 

Local governments in some major German cities, such as Frankfurt and Hamburg, called for a relaxation of laws against all illicit drug use in 1994.  However, federal government counternarcotics officials strongly oppose loosening drug possession or use restrictions.

The German parliament passed a strict precursor and essential chemicals control law, making the manufacture and sale of chemicals with the intention to manufacture illicit drugs a crime. 

Germany is a major international financial center.  FRG officials believe money laundering occurs, and law enforcement authorities have arrested suspected money launderers under strict money laundering laws passed in 1993.

Germany's money laundering and chemical control laws are in compliance with the European Union (EU) directives, and with the 1988 UN Convention.  Germany ratified the convention in 1993.

II. Status of Country

German authorities consider heroin the principal drug of domestic abuse. In the first six months of 1994, first-time heroin users increased to 3,459, compared to 3,283 for the corresponding period in 1993.  Authorities are also concerned about increasing use of cocaine and amphetamines.  First-time consumers of cocaine rose in the first half of 1994 to 1,629, from 1,090 for the same period in the previous year.  Amphetamine users increased to 830 in the first six months of 1994, from 576 for the same period in 1993. 

Germany has effective money laundering laws.  Financial institutions must identify transactions in excess of $13,000 to federal authorities who determine if the account should be frozen for suspected money laundering.  Authorities may seize assets obtained through criminal activity. 

Germany is a major producer of precursor and essential chemicals.  Manufacturers generally cooperate with law enforcement authorities, investigating cases of possible chemical diversion to illicit drug manufacturers.  In 1994,the government made the export of chemicals to known illicit drug manufacturers a crime.
 
III. Country Actions Against Drugs in 1994

Policy Initiatives.  Germany is active in various  international antidrug drug organizations, including the Dublin Group and the UNDCP.  The FRG hosted in March a Dublin Group meeting on alternative development and drug control, and actively participated in two of the group's meetings in Brussels during 1994.  Germany contributed approximately $1.3 million to the UNDCP, and provided technical and financial counternarcotics assistance to the newly independent states of the former Soviet Union (NIS).

Accomplishments.  The German precursor and essential chemical control law passed in 1994 makes it illegal to manufacture, smuggle, import or export chemicals used to manufacture illicit drugs.  The law conforms with the EU's directive on chemical control and with the UN Convention.  In 1994, the FRG also enacted legislation that allows the enforcement of criminal forfeiture orders. 

German law enforcement authorities arrested three members of a major money laundering operation under the strict money laundering law passed in 1993.

Agreements and Treaties.   Germany ratified the 1988 UN Convention in 1993; it is meeting the convention's goals and objectives.  USG-FRG agreements include a 1956 accord on the exchange of narcotics trafficking information, and a 1978 agreement to control drug abuse.  The USG and FRG cooperate extensively under their mutual extradition treaty.
 
Law Enforcement Efforts.  German law enforcement authorities are efficient and effective.  They are concerned that drug seizures will grow as traffickers smuggle more narcotics into Germany.  In the first six months of 1994, the most recent available statistics, authorities seized 724 kgs of heroin, compared to 379 kgs for the same period in 1993.  They also seized 288 kgs of cocaine, compared to 349 kgs in 1993. 

Corruption.  Drug-related corruption among officials is not problem.  The FRG 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.  There were no reports that senior FRG officials were engaged in the production or distribution of drugs or involved in money laundering activities.

Cultivation/Production.  Germany is not a major narcotics producing country, although there is small-scale production of amphetamines.  Law enforcement authorities destroyed six small illicit drug manufacturing laboratories in 1994.

Drug Flow/Transit.  Heroin smuggled from Turkey through the Balkans and Southeastern Europe is Germany's most serious trafficking problem.  Most traffickers are Germans, Turks, Italians, and Moroccans.  Cocaine is smuggled from Colombia in maritime cargo or by courier via west Africa.  Colombian nationals control most cocaine trafficking.  Increasingly, narcotics traffic is routed to Germany through Central Europe and the former Soviet countries.
 
Demand Reduction Programs.  The federal government and several states have drug treatment and drug prevention programs.  Annual federal spending for drug treatment, prevention, and research programs is approximately $80 million.  The FRG's National Program on Drug Abuse Control objectives are to increase international cooperation, as well as to increase federal, state and local financial commitments in the drug control effort.

IV. US Policy Initiatives and Programs

USG and FRG law enforcement cooperation is good.  German and USG authorities routinely cooperate on joint investigations of international drug trafficking organizations.  US law enforcement authorities provide demand reduction and narcotic investigation training to their German counterparts on a self-funded basis.

The Road Ahead.  The USG will continue working with Germany, bilaterally and in other multilateral counternarcotics fora, including the Dublin Group.  The USG will encourage Germany to chair the Dublin group in 1996, and to continue supporting the NIS in developing effective counternarcotics and organized crime programs.


GREECE

I. Summary

Greece is a transit route for narcotics produced in the Near East and South Asia and destined primarily for Western Europe.  Continuing civil strife in the former Yugoslavia in 1994 diverted traffickers to new routes which transit Greece and the Balkans.  Authorities made record seizures of heroin transiting Greece in 1994.

Greek officials believe drug abuse is growing, particularly of heroin.  Overdose deaths increased 67 percent over 1993 to 135 deaths.

Greece is a party to the 1988 UN Convention and is generally meeting its goals and objectives, with the exception of those relating to money laundering.  In December, the Government of Greece (GOG) began drafting additional money laundering legislation to comply with the Convention.  Greece is not a major supplier or transshipment point for precursor chemicals.

There is excellent cooperation between Greek and US enforcement agencies.  The GOG actively participates in various international antidrug organizations, including the Financial Action Task Force (FATF), and the Dublin Group where Greece chairs the Balkans/Near East regional working group.

Part II.  Status of Country

Greece is attractive as a drug transshipment route to other points in Europe,  due to its extensive coastline, numerous islands, and large merchant marine industry.  Drug routes through the Balkan peninsula passed from Turkey through Greece and Albania to Italy; or from Greece and/or Turkey to Bulgaria and then north to Central and Western Europe.

There is a small but growing domestic market for illicit drugs, especially heroin.  Drug overdose deaths increased to in 1994 from 135 in 90 in 1993.  Small amounts of cocaine, barbiturates, amphetamines and locally grown marijuana also are used.  GOG officials believe there were some 70-80,000 heroin users in 1994, up from about 40,000 in 1993.  Authorities seized a small amount of crack cocaine for the first time, but do not believe it is used widely. 

Greece is not considered a major financial or moneylaundering center, but authorities believe that some money laundering occurs.  As a result, in 1994 the Greek parliament began drafting additional money laundering legislation in accordance with the EU directive on money laundering and the recommendations of the FATF.  Authorities cooperated with the USG in freezing bank accounts suspected of containing illicit funds derived from drug trafficking.
 
Greece is not a major producer, supplier or transshipment point for precursor chemicals.  A special unit in Greek Customs tracks and investigates chemical imports and exports.

Part III. Country Actions Against Drugs in 1994

Policy Initiatives.  Greece is active in a member of international antidrug organizations, including the Dublin Group; it participated in two Dublin Group meetings in Brussels.

Accomplishments.  The Greek parliament approved legislation implementing chemical controls and licensing requirements, and a new customs unit was established to conduct on-site inspections of precursor and essential chemicals shipments. 

A new organization, Okana, was established in 1994 to expand and improve the country's demand reduction and addict treatment programs.  It will introduce methadone drug treatment for the first time in 1995. 

Agreements and Treaties.  Greece ratified the 1988 UN Convention in 1992, and it generally meets the Convention's goals and objectives relating to drug cultivation, distribution, sale, transport, law enforcement, transit cooperation, and demand reduction.  Greece passed implementing legislation for essential and precursor  chemical controls.  However, the GOG needs to enact legislation on asset forfeiture and controlled deliveries of narcotics to fully meet the Convention's enforcement goals.  The GOG and the USG have an extradition treaty and an agreement to exchange information on narcotics trafficking, both dating from 1928.  

Law Enforcement Efforts.  Greek and American law enforcement authorities cooperate closely.  The GOG routinely honors specific USG legal assistance requests.

The Central Narcotics Council, consisting of representatives of the ministries of Public Order, Finance, and the Merchant Marine, helps to coordinate drug enforcement activities. Authorities seized 240 kgs of heroin in 1994, compared to 38 kgs in 1993, 60 kgs of cocaine versus 5 kgs in 1993, and 6 mt of hashish, compared to 150 kgs in 1993. 

The GOG has no laws permitting sharing of seized assets with the USG.

Corruption.  Narcotics-related corruption is not considered a significant problem in Greece.  Greek anti-corruption laws deter public officials from facilitating the illicit production or distribution of drugs, or the laundering of drug money.  In September, ten prison guards were charged with alleged narcotics trafficking in prisons.

Cultivation/Production.  Cannabis is cultivated in small amounts for local use, the only illicit drug produced in Greece.  Authorities seized approximately 26,000 marijuana plants in 1994.

Drug Flow/Transit.  Greece is a transshipment route for heroin and hashish from the Middle East and South Asia to Western Europe, although a small amount goes to the US as well.  Nigerian drug organizations smuggle heroin and cocaine through the Athens airport. Larger amounts of drugs are smuggled into Greece in ship containers, on bonded "TIR" trucks, in automobiles, on trains, and in buses.  The trucks typically enter Greece via the land crossings between Greece and 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.

Demand Reduction Programs. The Ministry of Health's demand reduction agency, Okana, coordinates all demand reduction efforts.  Okana became operational in July.  It develops and administers information and prevention programs, runs therapeutic communities for substance abusers, and coordinates with other agencies working on narcotics treatment and prevention.  It plans to open a training school for drug prevention officers (social workers, teachers, psychologists) in early 1995.  Okana also runs a program for addicted prisoners, and a substance abuse information center for teachers. 

Public education programs against drug use and press reporting on overdose deaths have heightened public awareness of the growing drug problem in Greece.

Part 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 programs to Greek officials in 1994.  DEA hosts monthly meetings attended by representatives from the Greek Coast Guard, the National Police and Customs, INTERPOL, and narcotics coordinators from foreign embassies.  These meetings ensure a useful exchange of law enforcement information.

The Road Ahead.  The USG plans to negotiate a mutual legal assistance treaty with the Greek government in 1995 to complement existing cooperative arrangements.  The US also will offer investigative training opportunities and encourage active Greek participation in international antidrug organizations, including the Dublin Group.


HUNGARY

I.Summary

Efforts by drug traffickers to expand and diversify drug operations through Hungary continued to outpace interdiction and other anti-drug activities in 1994.  Drug organizations continued to use Hungary as a conduit for smuggling drugs to Western Europe.  Both expanded trafficking from opium source countries and improved enforcement were reflected in the number of heroin and hashish seizures in 1994.  Hungarian officials believe that drug traffickers also continue to take advantage of the banking industry to launder funds.  Although the Government of Hungary (GOH) had made strides toward developing an antidrug strategy in 1993, progress in changing antidrug legislation and increasing law enforcement efforts was hampered by other more pressing concerns in 1994.  Antidrug activities continue to be limited by the shortages of trained customs and police personnel and equipment.  However, Parliament did pass key legislation on money laundering.  The GOH has not yet ratified the 1988 UN Convention, but passage of comprehensive domestic legislation, which will support implementation of the Convention, is pending.  

II.Status of Country

Hungary's location is increasingly attractive to drug smuggling operations from Southwest Asia and Latin America.  Police officials note that the total annual amount of illicit drugs crossing Hungary's borders could be as high as 20-25 tons, or about twice the amount of earlier estimates.  Authorities believe that most drugs entering Hungary are destined for the more lucrative Western European markets.  Increasing amounts of narcotics -- heroin, hashish and some cocaine -- are, however, remaining in the country and contributing to growing domestic drug use.  Heroin traffickers are making use of Hungary's modern road and rail transportation systems and the Danube-Rhine canal system, on which river barges from the Black Sea pass through Hungary, to move their illicit cargos westward.  Seizure reports indicate that the war in former Yugoslavia is causing traditional Balkan-route heroin trafficking to move to parts of northern Hungary.  Seizures of cocaine also underscore Hungary's role as an entry point for drugs originating in Latin America.  

Turkish drug trafficking groups continue to spearhead smuggling operations through Hungary.  In addition, South American traffickers are making inroads into Hungary and in recent months several Colombian cocaine couriers have been apprehended at Budapest's international airport.

Amphetamine production is on the rise in Hungary, but still of little significance  Hungarian authorities discovered and closed down two small laboratories producing amphetamines for export.

There are no data yet on money laundering in Hungary.  However, during 1994 the penal code was amended to make money laundering a crime and banks are now required to report transactions exceeding circa USD 20,000. 

The Hungarian Ministry of Health and Welfare notes that domestic drug abuse is rising and abusers appear to be shifting to stronger drugs such as cocaine and heroin.  The police discovered the first local heroin distribution network in 1993.  Despite these indicators official estimates put the number of drug addicts in treatment under 3,000.  Preferred substances of abuse are still organic solvents, prescription drugs, amphetimines, and various types of poppy straw extracts, only quite rarely administered by injection.  

III. Country Action Against Drugs in 1994

During 1994 Hungary took important steps to bring it closer to ratifying the 1988 UN Convention and ratification is expected in 1995.  The Hungarian Parliament passed key legislation, such as amendments to the penal code and legislation on money laundering.  However, draft comprehensive legislation is still under review and pending submission to Parliament.  The Inter-ministerial Committee (IDC), which coordinates antidrug efforts in 15 ministries, continued to harmonize Hungarian legislation to meet the requirements of the 1988 UN Convention.  The police also approved a strategy for internal control of precursor chemicals, psychotropic substances and legal prescription drugs, which is to be instituted via a ministerial order.

The GOH's narcotics strategy remained to interdict smugglers at its borders, arrest and prosecute narcotics offenders, and prevent the use of narcotics domestically through prevention programs.  Sanctions enforcement against the former Yugoslavia continued to draw resources away from drug interdiction.  However, modernization of five key border crossings during 1994-95 and additional contributed resources for interdiction and education programs should increase the effectiveness of Hungary's counternarcotics effort.

The amount of heroin seized at Hungary's borders in 1994 (812 kilos), doubled that seized in 1993.  Two illicit amphetamine laboratories were discovered and shut down.  As a result of enforcement efforts, legal cases are pending on 162 individuals as compared to 62 in 1993.  To reinforce interdiction efforts, Hungarian Customs deployed an added five mobile specialized drug squads in 1994, increasing the total by fifty percent, to 15.  Ongoing modernization, with contributed funding, is enhancing inspection capabilities at five key border crossings and has provided computers and modern drug testing equipment to help combat crime and control drugs.

The GOH nationwide drug prevention program was expanded in 1994, with several more urban areas establishing multisectoral drug prevention committees.  

Cultivation/Production.  Cultivation of opium poppy for individual consumption, mostly culinary, is traditional.  There are 5,500 hectares of licensed plantations under cultivation.  In July 1994, 500 kilos of marijuana was seized, reportedly cultivated by a Dutch national in the vicinity of Budapest for export to the Netherlands.  Police eradicated 21 cannabis plots in 1994, all reportedly funded by foreigners.  
 
Corruption.  The USG is unaware of any reports of official narcotics-related corruption in Hungary.

Agreements and Treaties.  Hungary is a party to the 1961 UN Convention as amended by the 1972 Protocol, and the 1971 UN Convention.  It has signed but not yet ratified the 1988 UN Convention.  Legislation is being prepared and adopted to comply with Convention requirements with the possibility of ratification in 1995.  Hungary has bilateral antidrug agreements with the  U.K. and Sweden.  Its Association Agreement with the EC also includes provisions for antinarcotics cooperation and assistance.  

IVUS Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG continues to urge increased GOH attention to the drug problem.  In 1995 the USG will continue to promote antidrug cooperation by those nations, primarily in Western Europe, most directly affected by heroin smuggling through Hungary.  The USG is also encouraging support from the UNDCP to assist Hungary's customs and police agencies with detection equipment and training.  

In 1994 INL funded the participation of Hungarian officials in several law enforcement courses.  USIA sponsored several Hungarian officials in drug prevention policy fora and a Hungarian pilot version of USIA-sponsored lifeskills training, which includes information on the danger of drug abuse, was implemented in some 58 Hungarian schools.

The Road Ahead.  The USG will continue to encourage the GOH to expand drug control activities and to enact the antidrug legislation and establish the institutional capabilities necessary for Hungary to become a party to the 1988 UN Convention.  INL will channel most assistance through the UN Drug Control Program (UNDCP) and will continue to provide limited law enforcement equipment to assist the Hungarian government in its antidrug campaign.  Additionally, INL will support Hungarian participation in an East European regional demand reduction program in Sicily.  


ICELAND

I.  Summary

Iceland is not an important narcotics producing or transiting country, or exporter of precursor and essential chemicals.  The Government of Iceland (GOI) officials believe the number of drug abusers remains small, however they are concerned about the continued abuse of cannabis and amphetamines.

In 1994 the Government of Iceland implemented new anti-money laundering laws and identified a money laundering case for the first time.  The case is currently under investigation. 

Iceland has not ratified the 1988 UN Convention.  The USG provided two new computers to Iceland's law enforcement authorities for counternarcotics activities.

II.  Status of Country

GOI officials continue to be concerned about the use of hashish and amphetamines.  Narcotics police believe that hashish, marijuana, and amphetamines can be purchased in most of the bars in Reykjavik. 

Iceland is not an important regional financial center and money laundering is not considered a significant problem.  The GOI recently implemented anti-money laundering legislation in 1994.

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

III.  Country Actions Against Drugs in 1994.

Policy Initiatives.  The GOI implemented anti-money laundering laws in 1994.  The laws were used for the first time in December when a Bahamanian-registered company laundered about ten million dollars through two Icelandic commercial banks.  This matter remains under investigation. 

Agreements and Treaties.  Iceland has not yet ratified the 1988 UN Convention, however, it generally meets the Convention's goals and objectives.  The GOI plans to seek ratification of the Convention by Parliament after all implementing legislation is in place.  Drafting implementing legislation is a slow process, partly due to the small number of officials responsible for drafting the legislation.  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.  GOI and USG law enforcement cooperation is excellent.  Iceland's custom service, and national and local police cooperate effectively in narcotics cases.  In 1994, authorities seized 369 gms. of cocaine (compared to 69 gms. in 1993), 2 gms. of heroin (the same as in 1993), 783 gms. of amphetamines (compared to 3,375 gms. in 1993) and 20,235 gms. of hashish (compared to 17,699 gms. in 1993).  There were no reports of assets seized in 1994.

Corruption.  Corruption among public officials is not a problem in Iceland.  There are no recorded cases of government officials involved in narcotics trafficking-related activities.

Cultivation/Production.   The USG is not aware of any reported cultivation or production of illicit drugs in Iceland.

Drug Flow/Transit.   GOI officials believe most illicit drugs which transit Iceland are destined for larger markets in Europe.  Most of the drugs are smuggled into Iceland by commercial airline passengers.  Small aircraft also are used to transport illicit drugs within and through Iceland.  Icelandic authorities believe that small amounts of narcotics from Europe pass through Iceland on the way to the United States.

Demand Reduction Programs.  The GOI's anti-drug programs emphasize drug abuse prevention.  The GOI's Ministries of Education and Health are responible for Iceland's counternarcotics educational programs.  The United States Information Service office in Iceland works with GOI officials in developing drug abuse prevention materials.  

IV.  US Policy Initiatives and Programs

In July, the USG signed a memorandum of understanding with  Iceland's Justice and Finance Ministries, committing the police and customs for the first time to work together on the Joint Information Coordination Center (JICC) program.  In 1994, the USG provided funding to purchase two computers to allow the GOI to expand the JICC program.  The USG has now provided three computers to Iceland's JICC as well as JICC computer training courses.  JICC equipment allows Iceland's police and customs services to detect suspicious travelers at Iceland's two main airports.

The Road Ahead.   In 1995, the USG will encourage the GOI to expand its counternarcotics program from using the JICC for information gathering purposes to implementing its own searches and seizures.  The USG also will urge Iceland to continue taking the steps necessary to become a party to the 1988 UN Convention.


IRELAND

I  Summary

Cannabis remains the main drug of abuse in Ireland, however Irish authorities are concerned about growing use of heroin and the synthetic drug "ecstasy".  In 1994, Irish law enforcement authorities continued to seize shipments of heroin, cannabis, and synthetic drugs, most of which were in transit to the United Kingdom and continental Europe.

Ireland is neither a significant producer nor importer of precursor and essential chemicals.

In 1994 the Irish Parliament passed a major criminal justice law that makes money laundering a criminal offense and provides for the seizure of proceeds from drug trafficking.  This new legislation brings Ireland into compliance with the 1988 UN Convention.  Ireland expects to ratify the Convention by mid-1995.

II. Status of the Country

Cannabis continues to be the main drug of abuse in Ireland, accounting for about three quarters of all arrests and seizures.  Irish authorities are concerned about growing use of heroin and "ecstasy".  Irish health department officials believe there are 4,000-5,000 heroin users in Ireland.  Officials do not have statistics on ecstasy users.  However, the Irish national police seized 15,520 ecstasy tablets in the first six months of 1994, more than seven times the amount taken in all of 1993.  The Irish police seized crack cocaine for the first time in March 1994, however health officials believe the number of crack users remain small.

Ireland is not an important financial center, and Irish authorities believe little, if any, money laundering takes place in Ireland.  Ireland's money laundering laws are in  compliance with the 1988 UN Convention and the European Union directive on money laundering.

Part III.  Country Actions Against Drugs in 1994

Policy Initiatives.

The Government of Ireland (GOI) is a member of the Dublin Group and is taking an active role in the European Union's new European Drugs Unit established at The Hague in 1994.  In September 1994, Ireland participated in "operation piranha," an annual two week multinational maritime operation designed to identify and interdict suspicious vessels during what is the height of the cannabis harvest in north Africa.

Accomplishments.  A major goal of Ireland's national counternarcotics masterplan was achieved in 1994 with the passage of the 1994 Criminal Justice Act (the "Act").  This new law provides for the seizure and confiscation of the illegal drug trafficking proceeds, makes money laundering a prosecutable offense, requires financial institutions to prevent and assist in the detection of money laundering, and enables Ireland to enter into mutual assistance arrangements with other countries on criminal matters.
 
Agreements and Treaties.  The Act conforms to the requirements of the 1988 UN Convention.  Ireland plans to promulgate the implementing regulations for the Act before it ratifies the 1988 UN Convention, probably in mid-1995.

Law Enforcement Efforts.  Primary responsibility for Irish drug law enforcement lies with the 11,000 member national police force.  One-third of the force has received training in drug enforcement, and 111 officers are assigned fulltime to this work.

The Irish customs service is responsible for detecting the illegal importation of drugs.  Irish customs works with the Irish naval service to intercept ships suspected of carrying drugs.  Ireland received $150,000 from the European Union to purchase five small maritime craft in 1994.

In the first nine months of 1994, Irish authorities seized 1,060 kilograms of cannabis (compared to 4,200 kilograms in 1993), 35 gms. of cocaine (compared to 347 gms. in 1993) and 1,697 gms. of heroin (compared to 1,284 gms. in 1993).

Corruption.  Narcotics-related corruption among Irish public officials is not a 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.  The USG is not aware of any high-level GOI officials involved in the production or distribution of drugs or money laundering.

Cultivation.  A small amount of illicit drugs is cultivated or produced in Ireland.  The GOI seized "a few thousand" cannabis plants in 1994 primarily from people growing them for their personal use.

Drug Flows/Transit.  Irish authorities believe that much of the cannabis and other drug products which transit Ireland originate in north Africa (primarily Morocco) and are transported to Ireland on recreational yachts and fishing trawlers.  The rugged and sparsely populated southwest coast of Ireland provides many landing points for these vessels to unload their illicit cargo undetected.  Once the drugs enter Ireland, authorities believe the bulk of the drugs are transported to the UK and to other European countries via container trucks.

Demand Reduction Programs. The 1991 counternarcotics plan placed a heavy emphasis on reducing the demand for illicit drugs through education, outreach, treatment, and rehabilitation.  Every school in the country is required to have a drug education program and teachers must receive regular training on drug-related matters. 

IV. US Policy Initiatives and Programs

The USG and GOI law enforcement cooperation is good.  USG law enforcement authorities assisted Ireland with their drug-related law enforcement training programs.

The GOI has no provisions for the sharing of forfeited narcotics-trafficking derived assets with other governments.
 
The Road Ahead.   The USG will work with the GOI to develop a MLAT and will encourage it to ratify the 1988 UN Convention.  In the coming year, USG officials also look forward to continued close cooperation with Irish law enforcement officials, and cooperation within the Dublin Group.


ITALY

I. Summary 

Italian organized crime and South American cocaine traffickers   are partners in moving illicit drugs to Italy and to other European markets.  Southeast and Southwest Asian heroin transits Italy to Europe and the US  Italian authorities believe heroin use has stabilized, but that the use of cocaine and synthetic drugs has increased. 

Italian officials are concerned about continued money laundering activities; they intensified their efforts in 1994 to enforce money laundering laws passed in 1993.  Increased law enforcement efforts against the mafia resulted in more drug seizures, the closing of money laundering operations, and the prosecution of some of the organized crime leaders. 

Italy became a party to the 1988 UN Convention in 1990, and it is an active participant in the Financial Action Task Force  (FATF) and the Dublin Group.  Italian enforcement agencies cooperate closely with USG law enforcement agencies. 

II. Status of Country 

Heroin consumption in Italy has been stable for the past two years, with an estimated 150,000 to 200,000 addicts.  Cocaine use is on the rise, with current estimates of 300,000 to 500,000 users.  GOI officials are concerned about increased use of synthetic drugs, particularly "ecstasy", most of which originates in the Netherlands.  Law enforcement officials believe drug use would have increased without the 1993 referendum which lifted criminal penalties for the "personal" use of drugs.

Italian organized crime proceeds from drug trafficking and other criminal activities are invested in legitimate sectors of the Italian economy.  In 1994, the GOI implemented tough money laundering laws, which enacted in 1993.  The money laundering regime has begun to produce significant results.

The GOI maintains strict and effective controls on shipments of precursor and essential chemicals to prevent diversion to illicit drug manufacturers.

III.  Country Actions Against Drugs in 1994 

Policy Initiatives.  In November, Italy hosted the UN Ministerial Conference on Organized Transnational Crime in Naples.   Representatives of 140 countries agreed to greater cooperation to control money laundering, and to integrate laws against organized crime.  Prime Minister Berlusconi committed his government to make permanent tough anti-organized crime laws which are to expire in 1995.
 
Italy was active in multilateral antidrug fora, including the FATF, the Dublin Group and the UNDCP.  Italy contributed approximately $12.5 million to UNDCP in 1994, down slightly from $15 million in 1993.  The GOI promoted its $4.3 million telecommunications drug trafficking information system which now links 11 Central European countries' law enforcement authorities to share data on drug traffickers.  

Accomplishments.  Tough money laundering legislation passed in 1993 resulted in several successful prosecutions.  Nineteen defendants in the joint USG-GOI "Green Ice" operation were given lengthy sentences, including principal Colombian defendants Ospina Vargas and Villaquiran, who received 30 and 25 years respectively.  In mid-September, the FBI and its Italian authorities investigated a large international drug importation network (operation "Onig"), resulting in the arrests of 74 suspects in the US and Italy.  In December, US and Italian officials announced the completion of a two-year money laundering operation ("Dinero") which resulted in 88 arrests in five countries, and the seizing of $52 million in narcotics-derived assets and currency.

Italy, as regional Dublin Group chair for the Eastern Europe working group, initiated the formation of several new mini-Dublin groups in the region, including in Prague, Riga, and Vilnius.  These are effective in identifying and coordinating donor's drug control assistance to the region.

Law Enforcement Efforts. Italy's efficient and effective law enforcement authorities made the largest European cocaine seizure to date: 6,5 mt of cocaine seized in 1994, compared to 1.1 mt in 1993.  This increase is attributed to one 5.4 mt seizure in northwestern Italy in March.  Heroin seizures increased from 630 kgs in 1993, to over 1,121 kgs in 1994.  Italian police seized 759 kgs of marijuana in 1994, down from 1,360 kgs in 1993.  Hashish seizures also declined, from 10.6 mt in 1993 to 8.2 mt in 1994.  Italian police arrested 28,986 suspects for drug-related offenses in 1994, up from 21,442 in 1993. 

Corruption.  Despite comprehensive investigations of official corruption in Italy over the past two years, there has been no evidence of high-level government involvement in illicit drug activities.  There are ongoing investigations of possible links between former officials, including former Prime Minister Giulio Andreotti, and organized crime.

Agreements and Treaties.  Italy is a party to the 1988 UN Convention; it is generally meeting its goals and objectives, with the exception of strict criminal penalties for drug users.  Italy also is a party to the 1961 Single Convention, the 1972 Protocol thereto, and the 1971 UN Convention on Psychotropic Substances.  The USG and Italy have a mutual legal assistance treaty, and an active extradition treaty.  USG officials believe Italian cooperation on extradition and mutual legal assistance matters is good.

Cultivation and Production.  There is no production of heroin or cocaine in Italy.  A small amount of cannabis is grown in southern Italy, exclusively for domestic consumption.

Drug Flow/Transit.  Italy is a transit country for Southwest Asian heroin destined for the Italian and European markets, which flows increasingly through the Balkans.  South American cocaine transits Italy in increasing quantities, due to closer contacts between Italian organized crime and South American traffickers.  Cocaine from Colombia, Argentina and Brazil arrives in Italy in seagoing containers directly from South America and indirectly by truck from Spain and France.

Demand Reduction.  Italy's local governments, especially in Sicily, have devoted more resources to antidrug civic action campaigns.  The GOI emphasizes domestic demand reduction and treatment through a network of drug treatment centers.  Internationally, the GOI, in cooperation with the USG and UNDCP, conducts demand reduction workshops at the Eastern European demand reduction training center project in Sicily.

IV. US Policy Initiatives and Programs 

US and Italian cooperation on narcotics control is excellent.  US and Italian law enforcement authorities work closely in numerous investigations and operations targeting money laundering, drug trafficking, and organized crime.  The Minister of Interior attended the Italian/American working group meetings in Washington in 1994, underscoring Italy's dedication to close bilateral cooperation against organized crime.  The USG and GOI will organize international law enforcement training initiatives which emerged from the Naples organized crime conference in November.

Road Ahead.   The USG will provide training programs related to money laundering to Italian law enforcement officials.  The USG also will focus on enforcement cooperation against European, and North/South American drug networks, and coordination of antidrug assistance to Central Europe.  The USG will encourage Italy to support multilateral organizations, such as the UNDCP, and to continue active in the Dublin Group, particularly in Central Europe.
 

LUXEMBOURG

I.  Summary

Illicit drugs are not produced in Luxembourg, although small amounts of drugs transit the country.  Luxembourg authorities believe there are few drug abusers in their country, however authorities are concerned that drug use may be increasing.  In 1994, there were 29 drug-related deaths, double the amount in 1993.  Luxembourg is an important banking and financial center, and the Government of Luxembourg (GOL) is working aggressively to deter money laundering.  The USG and GOL cooperate closely in counternarcotics matters.  The GOL participates in a number of international counternarcotics fora, including the Dublin Group and the Financial Action Task Force (FATF).  Luxembourg ratified the 1988 UN Convention in 1992. 

II.  Status of Country

The GOL does not compile statistics on drug use.  However, authorities believe there are approximately 2,000 drug abusers in Luxembourg.

Illicit drug production and trafficking are not significant problems in Luxembourg.  Money laundering has occurred in Luxembourg in the past and the GOL considers narcotics-related money laundering a crime.  Luxembourg's anti-money laundering laws have been strengthened in recent years. 

Luxembourg law provides for asset forfeiture, and the GOL deposited almost $1 million of forfeited funds to this account in 1994.  The funds will be used to finance demand reduction programs in Luxembourg and to facilitate Luxembourg's participation in multilateral antidrug efforts.

The diversion of precursor and essential chemicals to illicit drug manufacturers is not a significant problem in Luxembourg.  Luxembourg's Parliament is expected to vote on a comprehensive chemical control law in 1995.  The law will bring Luxembourg into compliance with the European Union's directive on chemical control.

III.  Country Actions Against Drugs in 1994

Policy Initiatives.  Luxembourg strongly supported the 1994  European Union Commission's new anti-narcotics five-year action plan which emphasizes drug use prevention and provides policy guidelines for EU member states.

In July, the GOL proposed focussing its counternarcotics policy on therapeutic assistance for drug addicts, and reducing emphasis on criminal sanctions for drug use.

 Accomplishments. In November, the GOL established the "Luxembourg Center for Preventive Action," a public/private organization responsible for coordinating all drug-abuse prevention efforts in Luxembourg. 

Agreements and Treaties. Luxembourg ratified the 1988 UN Convention in 1992 and is generally meeting the Convention's goals and objectives.  The GOL is a party to the 1961 Single Convention and its 1972 Protocol, and the 1971 Convention on Psychotropic Substances. 

The GOL and USG have agreed to conclude an extradition treaty in 1995.

Law Enforcement Efforts.  Luxembourg authorities made 152 drug arrests, the majority of which went to prosecution.  High priority continued to be given to counternarcotics law enforcement, and the adequacy of resources was good, with increasing numbers of personnel being hired.  In 1994, Luxembourg authorities seized 316 kgs of cannabis (compared to 402 kilograms in 1993), 1 kg. of heroin (compared to 10 kilograms in 1993), and 15 kilograms of cocaine (compared to less than 1 kg. in 1993).

Corruption.  Corruption among public officials is not a problem.  There are no recorded cases of government officials involved in narcotics trafficking-related activities.

Drug Flow/Transit.  Small quantities of illict drugs are smuggled  into Luxembourg via commercial air and overland from neighboring countries for domestic use.

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

Demand Reduction Programs.  Luxembourg continues to target youths in its demand reduction efforts.  Educational programs are administered by the Ministry of Education, the Ministry of Public Health and the Ministry of Justice.  The new center for preventative action is expected to improve coordination of and expand preventative education.

IV.  US Policy Initiatives and Programs

The USG  did not have programs in Luxembourg in 1994.  The GOL and USG cooperate closely on judicial matters, particularly on pending money laundering cases.

The Road Ahead.  The USG looks forward to continued close law enforcement cooperation with the GOL.  In 1995, the USG will encourage the GOL's continued participation in the Dublin Group, and the FATF.


MOLDOVA

I.Summary

Moldova rates low among the former Soviet Republics in drug-related criminal activity.  Nevertheless, 1994 saw an increase in drug-related offenses, drug trafficking, local manufacturing of illegal narcotics and in government efforts to combat all of the above.  While the police and security services of Moldova are ill-equipped and poorly trained to handle the increasing burden of counternarcotics work, the national leadership has begun to bolster its efforts to target the problem.  In November the Moldova parliament approved several UN drug Conventions.  Other initiatives in 1994 included Moldovan membership in Interpol and a nascent effort to enlist regional cooperation and exchange information with its neighbors on narcotic matters.  The Government of Moldova (GOM) has made steady progress in recognizing, pursuing and disrupting narcotics trafficking and local cultivation of narcotics in 1994.

II.Status of Country

Drug related information available in Moldova is limited and much of it anecdotal.  However, the GOM believes that Moldova currently is a significant transhipment point and that its use as such will dramatically increase in the near future.  Authorities note that there is not yet a well developed criminal infrastructure in Moldova and that the sale and financing of drugs within country is now limited.  However, as the police and security services increase their efforts to monitor and interdict, we expect the level of known activity will increase.  In particular, drug trafficking from Central Asian Republics and locally grown or manufactured narcotics activity are expected to rise significantly.

III.Country Action Against Drugs in 1994

The GOM has begun to recognize the increased drug activity and taken steps to combat it.  This year for the first time the GOM identified Central Asian "narcomafia" personnel traveling to Moldova to organize opium and cannabis growers. The GOM responded with a fledgling effort to locate and destroy these illicit crops and a determination to closely monitor this new threat. Almost weekly, the GOM now makes a seizure of locally grown poppy or cannabis and has opened several hundred cases involving narcotics-related offenses.

Efforts at regional cooperation and exchange of criminal information with neighboring countries as well as membership in Interpol are significant achievements in 1994.  The GOM expects that Moldova will become an increasingly frequented transhipment point for Central Asian traffickers and is attempting through regional cooperation to augment its ability to monitor and interdict these shipments.

 While the GOM has not yet developed a national counternarcotics plan, the Ministry of Internal Affairs now has a special section charged with countering illicit narcotic activity.  The GOM is currently engaged in drafting new antidrug legislation.

Corruption.  The GOM has not yet articulated a policy with regard to official corruption.  The USG is unaware of any reports of official narcotics-related corruption in Moldova in 1994.

Agreements and Treaties.  The Soviet Union was a party to the 1988 UN Convention, the 1961 Single Convention, and the 1971 Convention on Psychotropic Substances.  Prior to the dissolution of the USSR, each republic agreed at Alma Ata that it would continue to observe the treaties to which the USSR was a party.  Based on these undertakings and the relevant principles of international law, the USG has reached the conclusion that Moldova, as a successor state to the USSR, continues to be bound by these instruments.  In November 1994 the Moldova parliament adopted these three UN Conventions, plus the 1972 Protocol to the 1961 Single Convention.  The GOM must now make formal notification of this action to the UN.

IV.US Policy Initiatives and Programs

US goals in Moldova are to increase GOM effectiveness against the narcotics target, to foster increased cooperation among Moldova and its neighbors on narcotics matters and to provide assistance in developing and implementing laws to counter all forms of criminal narcotics activity.

During 1994 the USG provided counternarcotics law enforcement training and two more of these programs will be provided in 1995.

The Road Ahead.  The USG will encourage Moldavan counternarcotics efforts and will play a key role in providing training, expertise and support to advance GOM implementation of the 1988 UN Convention.


THE NETHERLANDS

I.  Summary

Dutch policy is to treat drug use as a medical and public health problem with an emphasis on education and demand reduction.  The Dutch have long differentiated between "hard" and "soft" drugs, the latter being cannabis products.  All commonly abused drugs are illegal in the Netherlands.  However, the use of "soft drugs" by adults is "tolerated," and "coffee houses" are permitted to remain open if they sell only cannabis products to adults under certain, strictly enforced, conditions.

Combatting global drug trafficking remains a priority for Dutch authorities.  There is also concern about the use of the Netherlands as a transit point for South American cocaine and Southwest Asian heroin destined to other European countries.

The Netherlands has effective laws against money laundering and chemical controls.  The GON became a party to the 1988 UN Convention in 1993.

II.  Status of the Country 

Under the Dutch Opium Act of 1919, as amended in 1928 and 1976, the possession, sale, transport, trafficking, and manufacture of certain drugs is illegal.  Drugs are divided into two classes, those that present "unacceptable risks, hard drugs" (cocaine, opiates, etc.) and cannabis products.  The possession of the latter group of drugs is subject to less severe penalties if it is for personal use only.  Drug consumption per se is not illegal under this act. 

Although the sale of cannabis is illegal, the sale of cannabis in "coffeehouses" is tolerated, if the coffee house does not become a nuisance to the community, advertise, provide adults with more than 30 grams of cannabis for personal use, and/or handle "hard drugs." 

The number of heroin addicts in the Netherlands has stabilized.  Authorities believe there are about 21,000 addicts in the country, and approximately 600,000 users of cannabis products.

The Netherlands, an important global financial center, is considered a target for money laundering.  To counter these activities, the Dutch government passed money laundering legislation which went into effect on February 1, 1994 (see Accomplishments).  The legislation is in compliance with the EU directive on money laundering control and corresponds to the Financial Action Task Force (FATF) recommendations.

The Netherlands manufactures some precursor and essential chemicals and is a major transit country for European chemical exports.  The Dutch Ministry of Finance investigates potential violations of precursor and essential chemical controls (see chemical control chapter).

 III. Country Actions Against Drugs in 1994 

Policy Initiatives. In 1994 the Dutch Parliament required that authorities more closely supervise operations of "coffeehouses" and place "problem drug users under constraint", that is to give them a choice between prison or treatment.

Dutch money laundering legislation, passed in 1993, went into effect in 1994.  It requires all financial institutions to disclose to the Ministry of Finance unusual transactions over approximately $14,000 or any transactions under that amount which appear suspicious.  The number of unusual transactions reported by financial institutions between February and October 1994 was 12,000 (compared to 5,000 in 1991 and 1992.)

The Netherlands is a member of the UN International Drug Control Program (UNDCP), and participates in the Dublin Group in which it is the regional chair for the Caribbean working group.  In 1994, the GON contributed approximately $1.4 million to UNDCP.  It also provided bilateral anti-drug assistance to Suriname, Bolivia, and Colombia.

Accomplishments.  The Dutch Parliament ratified an asset seizure sharing agreement with the USG in June 1994.  The USG has not yet recieved reports of assets shared in 1994.

Agreements and Treaties.  The Netherlands ratified the 1988 UN Convention in 1993 and is generally meeting the Convention's goals and objectives with the exception of changing its legislation to make illicit drug use per se a crime.  The Dutch actively cooperate with the USG in law enforcement matters under the 1983 US-Netherlands Mutual Legal Assistance Treaty (MLAT).  

Law Enforcement Efforts.  The USG and the GON have cooperative agreements on extradition, mutual legal assistance, and asset seizure sharing.  Official drug seizure statistics for 1994 have not yet been release, but preliminary Dutch customs and press reports indicate that over seven tons of cocaine were seized in 1994, more than double the  3,720 kilograms seized in 1993 and a larger total than any other european country.  In 1994, heroin seizures apprear to be down compared to high level (916 kgs.) in 1993. 

In October, the Royal Netherlands Navy conducted their first trial deployment with US Coast Guard personnel for counternarcotics patrols in the Caribbean.  Despite this cooperative effort, no seizures were made.  Future trial deployments have been scheduled for 1995, while a formal agreement is negotiated.

Corruption.  Drug related corruption among Dutch public officials is not a problem.  The Netherlands 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.  There were no reports that senior GON officials were engaged in the production or distribution of drugs or involved in money laundering activities.

 Drug Flow/Transit.  The Netherlands' excellent transportation infrastructure, including, Rotterdam (the world's largest container port), makes it an attractive drug and chemical transhipment point.  Dutch authorities are concerned that the Netherlands has become an important transit point for South American cocaine and Southwest Asia heroin, much of which follow trafficking routes across the former Soviet Union and Eastern Europe.

Cultivation/Production.  Dutch authorities are concerned about marijuana grown for personal use.  In 1993 Dutch authorities seized 194,413 marijuana plants.  The Netherlands is a prime illicit producer of "ecstasy" which is exported and also used in the Netherlands.  In 1993, twelve laboratories which were producing "ecstasy", amphetamines, and LSD were closed.  Additional labs were detected in 1994, but 1994 statistics on the total number have not yet been released.

Demand Reduction Programs.   Drug use is considered a health problem in the Netherlands and Dutch demand reduction activities are among the most comprehensive in the world.  School and public awareness programs label cannabis products as substance health hazards.  Addicts are offered methadone maintenance and other treatment programs, including free hypodermic needles to help prevent the spread of AIDS.  Dutch officials believe they assist about 75 percent of current addicts in the Netherlands and supply 7,000 heroin addicts with methadone on an average day.

IV. US Policy Initiatives and Programs  

USG and GON Law enforcement cooperation is good.  The USG  offers opportunities to GON authorities for anti-drug related training on a self-funded basis.  The GON is working closely with the USG to strengthen the existing asset sharing agreement and Mutual Legal Assistance Treaty.  Continued active Dutch participation with the USG on counternarcotics activities through multilateral organizations such as the UNDCP, the Dublin Group and the Council of Europe will further broaden USG and GON drug control cooperation.

The Road Ahead.   The USG will continue working closely with the Dutch on counternarcotics activities, inlcuding enhancing our maritime cooperation in the Caribbean.  We will also increase our cooperation with the Dutch, as chair of the Caribbean region in the Dublin Group, particularly in supporting the actions of the Caribbean nations in controlling drug trafficking and money laundering.  We will also encourage an active Dutch role in the UNDCP and other international counternarcotics efforts.


NORWAY

I. Summary 

Narcotics production, money laundering, and diversion of precursor chemicals are rare.  Norwegian officials believe that Norway is increasingly becoming a transit country for drugs from Central Europe and are concerned about the potential for narcotics smuggling from Russia in Norway's northernmost districts. 

Drug usage and associated violence, although less a problem in Norway than it is in many European countries, is nonetheless troublesome.  Deaths from heroin overdoses reached a record high in 1994 as the result of an abundant and cheap heroin supply.

The Government of Norway (GON) views drug abuse as a health problem and provides extensive drug treatment programs through the social welfare system.  

Norway ratified the 1988 UN Convention in 1994.  It is a member of the Dublin Group, and cooperates with international counternarcotics efforts.  

II.  Status of Country

In the first six months of 1994, GON authorities seized eight times as much heroin, twenty times as much cocaine, and one hundred times as many amphetamines as in 1993.  Many Norwegians blamed Oslo's immigrant groups for the increased problem, complaining that smuggling is widespread among young African and Colombian men.

Production of illicit drugs, money laundering, and control of precursor chemicals are not significant problems in Norway.  Nonetheless, Norway, like many other wealthy, democratic societies, is an attractive market for narcotics.  Among Norwegian youth, hashish has been the drug of choice for many years.   The second most popular drugs are hallucinogens, particularly LSD and ecstasy.  Cocaine and heroin are less popular, however 73 reported heroin-related deaths occurred in Oslo in 1994, surpassing the 1993 total.  Many of the deaths, according to Oslo police, resulted from resumed use of heroin following a period of abstinence.

Norway is not a major world financial hub and money laundering is a criminal offense.  Suspected money laundering activities are adequately investigated by a special police unit on economic crime (ECOKRIM).

Norwegian customs officials monitor movements of key narcotics chemicals and cooperate actively with Norwegian chemical companies, who notify authorities of suspicious purchases and orders.  The regulations and practices of Norwegian customs satisfy the requirements of the chemical control provisions of the 1988 UN Convention.  

III.  Country Actions Against Drugs in 1994

Norway is a member of the Dublin Group, and the Pompidou Group which it has chaired since 1991.  Norway is a member of Interpol, the Customs Cooperation Council, the Nordic police and customs initiative (PTN), and the Nordic Coordinating Council on drug abuse.  Norway contributes $750,000 annually to the UN International Drug Control Program (UNDCP).  Additionally, through the Nordic "Pompidou Group," Norway contributed $450,000 in 1994 for a narcotics education project in Central Europe. 

In response to an abundance of cheap narcotics and increased drug-related deaths, the Ministry of Justice launched an offensive against the illegal drug trade.  The police started investigating distribution channels in Norway, including certain pubs and night clubs where drug dealing was suspected.

Agreements and Treaties.  Norway ratified the 1988 UN Convention in 1994  and  is in full compliance with its objectives.  Norway also is a party to the 1961 Single Convention, as amended in 1972, and the 1971 Convention on Psychotropic Substances.  Norway has bilateral customs agreements with the United States, most European countries and Russia.  Norwegian customs liaison officers are posted in London, Madrid, Islamabad, and Karachi. 

Law Enforcement Efforts.  Norway's law enforcement efforts are effective.   In the first six months of 1994, Norwegian police arrested 111 persons for narcotics-related violations.  Seizures for the same period included 89 kilos of hashish, 12 kilos of heroin, 11 kilos of amphetamines, and 461 tablets of ecstasy.  GON authorities believe that the average street price for heroin in Oslo fell to $150 per gram in 1994, a 30 percent drop compared to 1993.

Norwegian law authorizes the seizure of assets, and the value of such seizures increased in recent years.  The law allows the sharing of assets seized in connection with a foreign prosecution with other countries.

Corruption.  Official corruption, punishable under Norwegian law, is unusual.  Law enforcement authorities note that police are instructed to take a "big picture" view of narcotics control, that is, connect drug-related criminal activities with theft, assault, and tax evasion.

Drug Flow Transit.  Major sources of illicit drugs in Norway are Pakistan, Afghanistan and the golden triangle for heroin and cannabis; Latin America for cocaine; and the Netherlands and Poland for LSD.  Most of the drugs transit Central Europe.  Norwegian authorities are concerned about the potential for illegal trafficking from Russia and are skeptical of the ability or willingness of the Russian police to deal with narcotics smuggling.

Cultivation/Production.  Aside from a small amount of illict amphetamine production, drugs are not known to be produced or cultivated in Norway.

Demand Reduction Programs.  Norway views drug abuse as primarily a health/social problem rather than a law enforcement problem.  The GON provides treatment to drug addicts and its treatment centers are funded centrally but administrated locally.  Officials note that drug prevention programs, especially school programs aimed at young people, are lacking.
 
The GON reacted strongly to a recent recommendation to decriminalize heroin, cocaine and cannabis in Norway, citing the UN narcotics committee's opposition to drug legalization and "failed" experiments in the Netherlands and Switzerland.  Norwegian health experts have asked the GON to consider distribution of clean needles to heroin users, including convicts in detention centers.  In 1994 Norway began a trial methadone treatment project at an Oslo hospital.

IV. US Policy Initiatives and Programs

The USG looks to build already good counternarcotics law enforcement cooperation with the GON.  In 1994, the USG had no counternarcotics programs in Norway.

The Road Ahead.  The USG will encourage Norway, along with other European countries, to expand their efforts to assist the anti-drug efforts of the Newly Independent States of the former Soviet Union.


POLAND

I.  Summary

Drug traffickers use Poland for storage and transhipment of drugs, as an amphetamine producer and as an expanding market for their drugs.  A record seizure of over one ton of cocaine in 1994 underscores the increasing efforts by South American drug barons to use Poland as a transit point for smuggling cocaine to West European markets.  Southwest Asian heroin trafficking networks are continuing their efforts to expand routes through Poland to smuggle heroin to Western Europe.  Poland remains a major producer of amphetamines.  While cultivation of opium poppy persists at traditional levels, an increased interest in cannabis cultivation has been detected over the last two years.  Domestic drug abuse is also increasing and heroin and cocaine are become more available in the big cities.  The Government of Poland (GOP) has begun to take action against the escalating drug problems, including ratifying the 1988 UN Convention.  However, domestic legislation still permits possession of drugs and lacks key enforcement provisions, making arrests and convictions for drug-related activities difficult.  The GOP's antidrug efforts have been limited by manpower and resource shortages.  The Polish police are struggling to combat crime with a budget that has fallen in real terms every year since 1990.

II.Status of country

Increased drug seizures, including a sevenfold increase in cocaine and fivefold increase in heroin seized in 1994, reflect Poland's improving interdiction efforts but also underscore efforts by drug trafficking organizations to exploit Poland as a transit area.  These seizures include a recent shipboard seizure at an English port of over one ton of cocaine destined for Poland.  This was an accomplishment of a joint Polish/English police action.  It also illustrates the Colombian Cali Cartel's smuggling of cocaine to Western Europe through Poland by sea and in general cargo.  Authorities believe that large quantities are stored in facilities in Poland, then repackaged and shipped in smaller quantities to Western Europe and, in several cases, the United States.  

Heroin trafficking groups are also using routes through Poland to circumvent the war in the former Yugoslavia.  Heroin comes across the Black Sea from Turkey, and then across Ukraine or Belarus and Poland by car or truck.  Polish police estimate that as much as 500 kilos of heroin were smuggled in this manner in the first half of 1994.

Poland also continues as a drug producer.  West European authorities are concerned that 20 percent of the amphetamines used in Western Europe come from Polish criminal organizations.  GOP regulations are not adequate to prosecute persons engaged in amphetamine production.  Furthermore, there are few controls on chemical exports and there are chemists willing to engage in this illicit production.  There are reports of amphetamine production in universities and hospitals, although most production appears to take place in clandestine laboratories.  

Independent drug abuse experts estimate there are 100,000 drug addicts in Poland, with twice as many casual users and perhaps three times as many marijuana users.  According to these estimates, half of the drug addicts are HIV positive, and needle sharing is the leading cause of AIDS in Poland.  Although kompot, a locally produced poppy straw derivative, is the most prevalent drug in Poland, amphetamine use is becoming increasingly widespread.  Police also report availability of cannabis, and cocaine and heroin in large cities.

Polish authorities believe that Poland is not a significant money laundering center and that most laundering activities are related to tax evasion and criminal activities other than narcotics.  A new law was passed by the Sejm in 1994 making money laundering a criminal offense.  It still requires the approval of the Senate and the President.  This new law is supported by regulations already in place that require banks to know and record the identity of their customers and to report suspicious transactions.

III.Country Actions Against Drugs in 1994

The GOP bolstered its antidrug campaign in 1994, including ratifying the 1988 UN Convention.  A 1994 law will make money laundering a criminal offense once it receives Senate and Presidential approval.  The Minister of Justice recently formed an interagency counternarcotics committee that is drafting new antidrug legislation to enhance efforts to prosecute drug traffickers.

However, the legislation does not criminalize drug possession or address areas of police operations such as wiretapping and undercover operations.  Currently, Polish authorities are precluded from using paid informants and police officers cannot participate in undercover operations.  Wiretapping and controlled deliveries are legal only under special circumstances.  Suspected traffickers can only be prosecuted for bringing drugs into Poland, or manufacturing illegal drugs.  Possession for personal use is not penalized, and traffickers have successfully claimed even large quantities as personal stocks.

Despite a declining budget, the National Police created an Organized Crime Unit that has 300 officers and continues to expand.  To date, however, the Organized Crime Unit has concentrated primarily on car theft and racketeering.  Despite these drawbacks, Polish narcotics police played an instrumental role in a record seizure of 1,200 kilos of cocaine loaded on a Polish ship in Venezuela and seized in England by British authorities.  Polish authorities were also able to prosecute the perpetrators.  Eradications of illegal poppy plantations rose 60 percent from 1993, and 16,000 cannabis plants were destroyed in 1994.

Cultivation/Production.  Polish law permits the cultivation of opium poppy subject to established controls.  Farmers are required to register their licit fields with the Ministry of Agriculture.  Only low morphine strains are legal and farmers are required to sell poppy straw to the government.  However, enforcement is lax and many farmers continue to self-seed older, more potent varieties, and there are also unlicensed poppy fields aimed at illegal drug production.  GOP officials note that the poppy straw concoction "kompot" is produced throughout Poland.  Kompot is a homemade mixture of boiled poppy straw or morphine base that some experts believe causes the same effects as heroin.  
 
Marijuana cultivation has been discovered over the last two years, both for export and for domestic consumption.  However, Polish police are optimistic that Poland's short growing season and lack of sunshine are inhospitable enough that marijuana cultivation will not become a serious problem.

Corruption.  The United States Government is unaware of any reports of narcotics-related official corruption in Poland.

Agreements and Treaties.  The GOP ratified the 1988 UN Convention in 1994.  Poland is a party to the 1971 UN Convention and the 1961 Single Convention, and its 1972 Protocol.  The new law on dangerous drugs being drafted by an interagency committee should permit full compliance with the UN Conventions and the 1972 Protocol.  Polish police authorities are developing working contacts with western law enforcement agencies, especially Germany, the United Kingdom  and the US, as well as with their central and eastern European neighbors.

IV. US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The USG increased cooperation with Poland's antidrug agencies in 1994.  The USG provided INL-funded training assistance in 1994 for Polish law enforcement and drug abuse prevention officials.  DEA and US Customs are cooperating with Polish authorities on operational matters and will continue to do so in 1995.

The USG will continue to promote increased GOP attention to the drug problem.  Additionally, the USG will urge antidrug cooperation by those nations, primarily in Western Europe, most directly affected by heroin smuggling through Poland.  The USG is also continuing to encourage support from the United Nations Drug Control Program (UNDCP) to assist Poland's customs and police with detection equipment and training.  

The USG will continue to encourage the GOP to pass antidrug legislation and to establish effective institutions to enforce those laws.  During 1995, the USG will focus its support on urging Poland to implement fully the 1988 UN Convention and to give more attention to enhancing effective law enforcement.  


PORTUGAL

I. Summary 

Portugal is an important transit point for cocaine from South America, heroin from Southwest Asia, and hashish from northern Africa (primarily from Morocco) destined for Western Europe.  Portuguese officials are concerned about continued  illicit drug consumption (especially heroin) and  trafficking.  Enforcement of drug laws was strengthened in 1994 by the designation of the Judicial Police (PJ) Narcotics Section as the lead coordinating agency for all narcotics-related investigations.

Some chemicals used to manufacture illicit drugs are produced in Portugal, but diversion to drug traffickers is not considered a problem.

Authorities believe money laundering occurs.  Several money laundering cases are currently under investigation under the Portuguese anti-money laundering laws passed in 1993. 

Portugal ratified the 1988 UN Convention in 1991.  The Government of Portugal GOP is a member of several international drug control organizations, including the Dublin Group.  The European Monitoring Center for Drugs Abuse in Lisbon, which will gather drug use information from European Union member states, became operational in 1994.

II. Status of the Country. 

The GOP does not maintain statistics on drug use, Portuguese authorities believe drug use has stabilized.  In 1993, authorities estimated that there were approximately 50,000 drug users, mostly heroin addicts.

The European Union's (EU) Center for Drugs and Drug Addiction, located in Portugal, began operation in 1994.  The Center gathers and analyzes statistics provided by EU member states on drugs, addiction and the causes of drug addiction.  

Money laundering legislation enacted in 1993 has allowed narcotics officials to initiate investigations of several corrupt business, cash/currency exchanges and banking establishments.  Although none of these investigations us yet complete, the fact that they are ongoing indicates the government's intentions to control money laundering.

III. Country Actions Against Drugs in 1994

Policy Initiatives.   GOP officials plan to form an inter-agency task force to identify and target major narcotic traffickers.  The task force would combine investigative resources of various police agencies to improve investigations of illict drug trafficking. Portugal is also active in the European Police Organization (EUROPOL) which is located in the Netherlands, and assigned law enforcement personnel to the organization in 1994.
 
Accomplishments. In 1994, the Judicial Police (PJ) Narcotics Section was designated as the lead coordinating agency for all narcotics-related investigations.  Prior to 1994, a lack of coordination of narcotics related investigation by various GOP agencies resulted in wasted resources and unsuccessful investigations.

Agreements and Treaties.  Portugal  ratified the 1988 UN Convention in 1991 and is meeting the Convention's goals and objectives.  The GOP also is a party to the 1961 Single Convention, the 1972 Protocol, and the 1971 Convention.  The USG and GOP have an extradition treaty dating from 1908.

Law Enforcement Efforts.   Portuguese and US law enforcement cooperation is good.  The GOP routinely honors specific USG legal assistance requests.  GOP law enforcement authorities believe drug trafficking has stabilized.  In 1994 authorities seized 1,600 kilograms of cocaine, 76 kilograms of heroin, and 13 kilograms of marijuana.  Authorities also seized 36 metric tons of hashish in 1994.

Corruption.  Corruption  by government officials is not considered a problem.  The GOP does not as a matter of policy or practice encourage or facilitate the illict production or distribution or drugs or the laundering of money.  Portuguese authorities reported no cases of drug-related corruption among high-level officials in 1994.

Drug Flow/Transit.  The lack of efficient border controls and the nation's lengthy coastline make Portugal an attractive transit point for drugs from South America to the rest of Europe.  Portugal's close cultural, linguistic, and historic ties to Brazil and the former Portuguese colonies in Africa attract traffickers from those countries to Portugal.  Hashish from Morocco transits Portugal to the larger European markets.  Most of the drugs arrive by ship.  

Cultivation/Production.  Cultivation or production of illicit drugs is not considered a problem in Portugal.  The USG is not aware of any significant production.

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

The USG sponsored training for Portuguese officials in 1994, including two money laundering courses.  Officials also attended courses on analysis of drug-related intelligence.

Several USG sponsored trips to the United States for key GOP law enforcement officials for counternarcotics investigative training also occurred.

The Road Ahead.  The USG looks forward to continued good counternarcotics cooperation with the GOP.  During the coming year, the USG will urge the GOP's continued participation in the Dublin Group and other international organizations.
 

ROMANIA

I.Summary

Romania has become a key transshipment point for heroin destined for western Europe.  Drug traffickers increased their efforts to smuggle illicit drugs through Romania in 1994.  Moreover, the volume of illicit narcotics including heroin, cocaine, opium, hashish and cannabis seized in Romania and the number of drug trafficking-related arrests increased significantly in 1994.  With the continuation of the war in the former Yugoslavia limiting transit to Western Europe by traditional routes, drug smugglers have expanded air, land, and sea routes through Romania.  The Romanian police and security services' interdiction efforts were hampered by limited resources, alleged corruption, disorganization and weak penalties for drug trafficking.

II.Status of Country

Romania is a rapidly emerging major transit point for drug smuggling, particularly heroin, from Turkey and Bulgaria to Western Europe.  Romania's geographical location and the war and instability in former Yugoslavia, a lax judicial system, corruption within the police and security services and a liberal entry policy all fuel drug smuggling through Romania.  Traficking operations are exploiting rail and sea cargo as well as trucks ferried by sea from Istanbul.  The Danube canal system is also used to move drugs on river barges from Black Sea ports into Germany.  Air routes into Sofia are vulnerable to entry of cocaine originating in South America and heroin from Thailand.

Opium poppy and cannabis are grown in small quantities in Romania for culinary and household use.  Romanian anti-drug units investigated reports of cannabis cultivation in western Romania, but no arrests were made.

Money laundering is also on the rise.  Although information is limited, Romanian authorities report increased involvement of Italian organized crime and Chinese and South American criminal groups in money laundering operations.  However, Romania's limited financial system will impede large amounts of illegal capital from being laundered through Romania in the near future.

III.Country Action Against Drugs in 1994

As the Government of Romania (GOR) struggles with inflation, unemployment, and other major economic problems, drug control has not yet become a high priority concern.  Nevertheless, the Romanian police, customs, and security services all have established counternarcotics departments and investigative programs and operations.  These departments and senior GOR officials are pushing for stricter law enforcement, controls for monitoring financial transactions, anti-corruption initiatives and tougher penalties for trafficking to comply with the UN Conventions to which Romania is a party.  These efforts, however, have not progressed beyond parliamentary discussion and debate.  
 
The bulk of Romanian anti-drug work in 1994 focused on investigating several small-time heroin and cocaine operations.  The result was the break up of small organizations and approximatly 30 drug seizures in 1994.  These included hashish and cannabis, 12,700 kilos; opium, 15 kilos; heroin, 415 kilos; cocaine, 137 kilos; and morphine, 278 vials.  The vast majority of these narcotics were discovered in vehicles or private residences.  

Corruption.  Romania has yet to formulate a policy and take action against 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 in 1994.

Agreements and Treaties.  On January 21, 1993, the GOR became a party to the 1988 UN Convention and to the 1971 UN Convention on Psychotropic Substances. It is also a prty to the 1961 Single Convention on Narcotic Drugs and its 1972 Protocol.  The GOR is engaged in developing the institutional framework and legal requirements necessary for effective implementation of the Conventions.

IV.US Policy Initiatives and Programs

The USG continues to encourage antidrug cooperation by those nations, primarily in Western Europe, most directly affected by heroin smuggling through Romania.  The USG also supports the United Nations Drug Control Program's (UNDCP) assistance to Romania's customs and police services.  

The USG continued to provide modest INL-funded assistance -- through the US Drug Enforcement Administration (DEA) and the US Customs Service -- for Romanian law enforcement and customs officials.

The Road Ahead.  The USG will continue to encourage the GOR to expand its drug control activities and to establish the necessary legislative and institutional capabilities to fulfill the goals and objectives of the UN Conventions to which it is now a party.  In addition, the USG will urge the GOR to give more attention to creating a cadre of professional law enforcement officials to target drug problems and will continue to provide limited law enforcement and demand reduction training and equipment to assist Romania's ant-idrug efforts.
 

RUSSIA

I.Summary

In Russia in 1994, drug trafficking with its consequent problems continued to increase.  The most prevalent drugs in Russia -- traditionally hashish, marijuana, opium, poppy straw and pharmaceuticals -- now include cocaine from Colombia, heroin, and drugs such as ephedrine, pervitin, methadone, phencyclidyn, phentanyl and trimethyphentanyl.  Drugs coming into Russia from abroad in 1994 increased to 47 percent of the entire amount of confiscated drugs, compared to 33 percent in 1993.  Russian Government (GOR) authorities note that the drug trade is becoming increasingly organized and professional and that the very high prices paid for heroin and cocaine in Russia are attracting the attention of international drug barons.  Another trend is the local production and widespread distribution of psychotropic substances, which flourish despite GOR efforts to close down clandestine laboratories.  Laws and legislation based on UN models and supporting more effective law enforcement are in progress in the executive and parliamentary branches of government.  While the GOR is increasing efforts to expand its antidrug campaign, clear results remain to be seen.

II.Country Status

Illicit drug interests are exploiting Russia's geographical location and its vulnerable borders, attempting to cash in on its potentially huge and lucrative market.  The availability of opium poppy and chemical raw materials beckon illicit drug producers, as do the large number of underemployed chemists and pharmacologists and a well developed system of research institutes and laboratories.  Incomplete anti-narcotics legislation and lack of personnel and equipment in law enforcement bodies also attract the attention and initiative of drug traffickers.

New trends in trafficking emerged in 1994, including heroin smuggled from Southeast Asia by sea through Vladivostok and by land from Mongolia.  Trafficking groups from southern Siberia maintain networks in the Kyrgyzstan city of Osh, a key location on the new trafficking route for Afghan heroin through Tajikistan.  In Primorski Kray, in the far east of Russia, GOR authorities apprehended a North Korean heroin smuggling ring.  According to Russian officials, the Colombian Medellin drug cartel has already visited Moscow and has reportedly stationed permanent agents there.  Representatives from local criminal organizations have likewise traveled to Latin America.

Moscow continues the USSR ban on opium poppy and cannabis cultivation.  However, illicit cultivation and production, particularly of poppy straw in southern Russia, together with illicit imports from neighboring Ukraine and the Central Asian States account for the greater part of all drug seizures in Russia.
 
Although most information is anecdotal, the illicit manufacture and trafficking of psychotropic substances is another growing threat in Russia.  The most popular of these substances is trimethylfentanyl, which was invented by four chemistry students at Kazan University in 1990.  Its popularity is confirmed by a growing number of clandestine laboratory seizures.  Recently, illicit Russian laboratories  began producing trinisillintoline, which until now had only been manufactured in the United States.

On a positive note, clandestine manufacturing of ephedrone and pervitin, which was first detected in 1986, is almost completely extinguished.  Controls on licit ephedrine have been tightened and are strictly enforced.  Over-the-border trading in precursor chemicals is enforced through a well developed licensing system.  However, Russian authorities have notified the USG regarding exports in 1994 of the precursor benzyl methyl ketone (P2P).

Money laundering is a major drug concern.  Russian efforts to curb money-laundering have been confounded by an antiquated financial system which easily permitted criminal groups to set up their own banks.  As a counter-measure the minimum capital requirement for a bank was increased in 1994 from USD 50,000 to USD 1.27 million, and is planned to reach USD 5.5 million by 1999.  Only a small percentage of all currently licensed banks meet the 1994 requirement.  New banking regulations came into force in January 1994 which require commercial banks to report transactions exceeding USD 10,000 to the Central Bank.

III.Country Action Against Drugs in 1994

Based on the State Drug Control Policy adopted in July 1993, an Interministerial Committee on Controlling Drug Abuse and Illegal Drug Dealing was established in July 1994.  The Committee includes 29 ministries and departments and is to provide coordination of the ministries combatting illegal drug and control activities in this field.  The Committee prepared a comprehensive federal program on controlling drug abuse and drug dealing for 1995-97, still to be discussed at the State Duma, which sets forth guidelines in the following fields:

--development of national anti-drug legislation;
--prevention of drug abuse;
--treatment and social rehabilitation of drug addicts;
--security controls for legal drug production and distribution
--control of illicit drug trafficking.

The Ministry of Internal Affairs (MVD) has 3,500 agents working exclusively on narcotics issues (the same level as in 1993).  It is understood that the MVD could not recruit an additional 1,000 agents planned for 1994 due to a poor response attributed to the low salary offered to beginning agents.

 GOR authorities seized 50 tons of illicit narcotics in 1994.  Reported crimes associated with drug trafficking numbered around 75,000 in 1994, a 50 percent increase over l993, and the GOR estimates that this is only 10-15 percent of the total.  Total illegal drug circulation is estimated at hundreds of billions of rubles (USD 1 was equal to 3,500 rubles as of the end of December 1994).

Domestic drug abuse is supported mostly by opium poppy and cannabis growing wild or cultivated in Russia, the neighboring Ukraine and the Central Asian States.  Poppy straw accounted for 35 of the 50 tons of seized narcotics in 1993.  The MVD's general operation MAK (poppy)- 94, aimed at cutting off sources and channels for trafficking all vegetable-origin narcotics, was described as successful.

Corruption.   The USG is aware of no reports of drug-related corruption in the political elite.  However, there are numerous reports that various political figures and parties are funded partly by organized crime groups, some of which are involved in drugs trafficking.  

Although direct linkage between political contributions, drugs and government officials is murky, there are credible reports that criminal groups spend 30 to 50 percent of their gross profits on bribes to government officials, especially customs and police officers.  The State Duma adopted a law in October 1994 designed to prevent state bureaucrats from abusing their positions by requiring them to submit an annul declaration of the their personal income and assests.  It is unclear how this law will be enforced.

Agreements and Treaties.   Russia is a party to the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs unamended, and the 1971 Convention on Psychotropic Substances. While some progress has been made, the GOR must take additional action in order to meet more fully the goals and objectives of the 1988 Convention.  The GOR submitted two draft laws to the State Duma in late 1993 on legal drug circulation regulations and illicit drug trafficking control.  Once adopted, they will introduce stiffer penalties against those convicted of drug-related crimes.  The proposed legislation has not moved forward at the Duma.

IV.US Policy Initiatives and Programs

There was a much publicized visit in July by the US FBI Director, followed by the US Interagency Anti-crime Cooperation Delegation visit in October.  As a result of these visits closer ties between the law enforcement bodies of the two countries have been established and training programs to combat international organized crime, financial crime and narcotics trafficking have begun.  In addition, the US and Russia are negotiating a mutual legal assistance agreement to promote cooperation in criminal matters.

Five Russian detector dog officers participated in training in the US in 1994, and were later deployed in their respective areas with their partner American dogs.  In November the Financial Action Task Force (FATF) team held a series of meetings with GOR agencies and officials to review the suggestions against money laundering made by the FATF in 1993.  Numerous seminars and workshops were funded by INL  and conducted by DEA in 1994.
 
The Road Ahead.   In a continuing effort to encourage Russia in narcotics controls, the USG with funds from the Freedom Support Act and INL will provide the following training courses for Russia's anti-narcotics law enforcement agencies in 1995:
 

SLOVAK REPUBLIC

I.  Summary

The Slovak Republic recognizes that is it vulnerable to drug interests in the region, and is bolstering its antidrug apparatus.  There is little information available on the extent of trafficking or on the overall drug situation, but West European authorities report that much of the heroin seized in southern Germany and Austria passes through the Slovak Republic.  Additionally, West European authorities believe that illicit amphetamines seized in Western Europe are produced in Slovakia, but solid information is limited.   

Despite a change in the regime, the efforts of the Government of the Slovak Republic (GOSR), backed by high-level support, to develop a counternarcotics strategy are beginning to pay dividends.  In 1994, the government enacted crime legislation which included strong drug control provisions, including penalties for narcotics possession and authorizing controlled deliveries.  The government restructured the police force to improve coordination, and released a national drug program.  Even with these advances, however, seizures of illicit narcotics totalled less than 100 grams.  Interdiction operations are expected to increase with the help of stronger legislation.  These efforts should help the Slovak Republic to meet the goals of the 1988 UN Convention.  The GOSR assumed all treaty and other international obligations of the former Czech and Slovak Federal Republic, including the 1988 Convention.

II.  Status of Country

The Slovak Republic's location and its lack of effective border controls leave the country open to Turkish and other drug networks that have smuggling operations in the region.  According to the central drug service report and Western law enforcement authorities, opiates from Central Asia are smuggled via Ukraine.  Meanwhile, Slovak authorities are concerned about the vulnerability of Slovak's well-developed chemical and pharmaceutical industries.  Currently all licit narcotics issues, including licensing of export/import controls and the drug prescription system, are handled by one official in the Ministry of Health.  Plans to privatize the industry could play into the hands of drug trafficking organizations seeking ownership of the means to produce illegal narcotics or precursor chemicals.  Because the banking sector is still very modest,  Slovak officials believe that drug money laundering operations are limited. 

Health authorities believe that drug abuse may be increasing, but there are few supporting statistics.  The Bratislava-West Slovakian region reported a ten-fold-plus increase in the number of heroin addicts referred for treatment in 1992-93; other regions also have reported substantial increases, according to the UNDCP.

 III.  Country Action Against Drugs in 1994

Policy Initiatives and Accomplishments.  The GOSR's increased commitment to drug control resulted in several significant policy changes during the last quarter of 1994.  These included revamping the criminal code, the development of a national antidrug plan,  and the restructuring of the National Police Force.   

The new criminal legislation which went into force in October made significant changes in the Slovak criminal and penal codes, and will enhance the ability of law enforcement agencies to investigate, arrest, and prosecute drug criminals.  The new legislation includes provisions for undercover operations, criminalizes drug possession and money laundering, and includes controls for precursor and essential chemicals used in illicit narcotics production. 

In November, the GOSR announced a comprehensive antidrug plan which targets trafficking and drug use.

The National Police was reorganized in August into three administrative structures, one of which included a new drug squad.  The result is a more streamlined command structure and better coordination between specialized police units.  

Law Enforcement.  Despite severe resource restrictions, and a previously inadequate criminal code, the police conducted limited antidrug operations during the year. The National Police arrested 32 suspects for drug related offenses.  The new legislative tools and a variety of assistance programs are expected to bolster the effectiveness of the national police in 1995.  Moreover, the new National Drug Program calls for increased coordination between Slovak enforcement agencies and increased regional cooperation.  

Corruption.  The USG is unaware of any reports of official narcotics-related corruption in the Slovak Republic.  There is some concern within law enforcement circles that officials in the ministries of Finance or Privatization may be willing to turn a blind eye to investments by crime organizations in the Slovak Republic's pharmaceutical or chemical industries.  There were no reports of such cases in 1994, and the changes to the criminal code which took effect in October address many of these areas, expanding enforcement authority to investigate and prosecute corruption cases.
 
Agreements and Treaties.  The Slovak Republic intends to honor all obligations and treaty commitments of the former Czech and Slovak Federal Republic, including adherence to the 1988 UN Convention, the 1961 Single Convention, the 1972 Protocolthereto, and the 1971 UN Convention on Psychotropic Substances.  The bilateral extradition treaty between Czechoslovakia and the United States remains in force and, in effect, has been updated to encompass drug-related offenses through the Slovak Republic's adherence to UN conventions. 

Cultivation and Production.  Authorities believe that there is extensive production of illicit amphetamines, but evidence is anecdotal, or from press reports.  There are no indications of opium poppy cultivation, and only minimal cannabis cultivation in private greenhouses.  
 
Domestic Programs.  The Slovak Republic's demand reduction program, limited to several treatment beds in a Bratislava hospital, is expected to expand under the new National Drug Plan.  It includes proposals for increased public awareness programs and additional treatment centers.

Germany is providing DM 1.5 million in computers, communications and surveillance equipment, and vehicles.  Slovakia receives equipment for the police and customs service and forensic laboratory equipment from the UNDCP.  The EU and Germany plan significant training programs for 1995.  The EU is also providing significant training and equipment to establish a national drug information system, expand demand reduction programs, and develop legislation, mechanisms and procedures for to control precursor chemical and money laundering activities.  

IV.  US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  The FBI Director and the DEA Administrator traveled to Bratislava and met with key Slovak officials to expand the counternarcotics dialogue.  Through UNDCP, INL contributed funds to strengthen the law enforcement and customs communication infrastructure, and to enhance their surveillance and interdiction capabilities.  Additionally, INL has funded training by DEA and US Customs.  FBI also offered training to combat organized crime.  The USG is urging key West European donor countries to support the GOSR's antidrug efforts.  It will encourage Bratislava to expand its drug control activities, enforcement capabilities.  INL and the UNDCP are co-funding GOSR participation in a regional demand reduction program in Sicily.   
 

SPAIN

I. Summary 

Spain is a popular transit route for South American cocaine destined for other parts of Europe.  DEA estimates that approximately 80 percent of the cocaine found in Europe enters the continent through Spain.  Its proximity to Morocco also makes it a major hashish transit country to Europe.

Spanish officials believe domestic cocaine use has increased, but that heroin consumption has stabilized.  They are concerned about a significant increase in the availability and consumption of the designer drug "ecstasy".

Heroin and cannabis seizures increased significantly in 1993 from previous years.  Annual statistics for 1994 will be released in November 1995, but authorities believe they will be similar to those for 1993.  Seizures in recent years are attributed to a shift in Spanish law enforcement emphasis from small-volume drug dealers to the investigation of larger trafficking operations.

The Government of Spain (GOS) ratified the 1988 UN Convention in 1990.  Spain is in compliance with the EU directives on money laundering and precursor chemical controls.
 
II.  Status of Country

The sale of and trafficking in illicit drugs is a criminal offense in Spain, but possession or use of small amounts of drugs is subject only to administrative penalties, such as fines.  According to 1994 opinion polls, 60 percent of Spanish citizens oppose drug legalization; law enforcement authorities do not believe Spain will legalize drugs in the near future. 

The use of hallucinogens and stimulants among Spain's youth has increased dramatically, leading to increased trafficking in these drugs in Spain.  Spanish officials believe that cocaine and cannabis use have increased less dramatically.  However, intravenous heroin use has declined, primarily out of concern about contracting AIDS. 

Spanish law enforcement authorities are concerned that money laundering may be increasing, and have proposed changes to the penal code allowing Spanish authorities to more effectively investigate money laundering cases and enforce existing laws (see Policy Initiatives).  Spain complies with EU directives on money laundering, as well as the 1988 UN Convention. 

Spain is not considered a significant diversion source for precursor and essential chemicals.  Spanish laws are in accordance with EU chemical control directives, and the 1988 UN Convention.

III.  Country Actions Against Drugs in 1994

Policy Initiatives.  

The parliament is expected to enact new legislation early in 1995 permitting the use of undercover agents and the controlled deliveries of narcotics and cash for investigative purposes.  It will also create a witness protection program, and permit more flexible use of electronic surveillance of traffickers. 

Spain actively participates in various international counternarcotics fora, including the Dublin Group.  It provided approximately $400,000 to the UNDCP.

Agreements and Treaties.  Spain is generally meeting the 1988 UN Convention's goals and objectives.  To fully meet them, Spain needs stricter criminal penalties for drug users.  Spain ratified the mutual legal assistance treaty with the US in 1992, which contains provisions to cooperate in narcotics-related investigations.  Spanish authorities have complied fully with the spirit and the letter of the MLAT, as well as the US-Spain extradition treaty.

Accomplishments.  Spanish law enforcement authorities seized 60,000 "ecstasy" tablets, the single largest seizure of its kind in Spain.   Spanish officials also seized approximately $20 million in drug-related proceeds in 1993, a 20 percent increase over 1992.  In August, the Spanish coast guard seized a one-mt shipment of cocaine off the coast of Suriname.

Law Enforcement Efforts.   Spain's law enforcement authorities are efficient and effective.  In 1993, Spanish authorities arrested 30,161 suspects for narcotics trafficking.  Of these, 43 percent were involved with the traffic in opiates, 13 percent with cocaine, 36 percent with cannabis, and 7 percent with hallucinogens.  The number of arrests in 1993 increased approximately 9 percent over 1992.

USG and GOS law enforcement cooperation is good.  Spanish authorities cooperate fully with USG authorities in pursuit of international narcotics traffickers.

Corruption.  Drug-related corruption among Spanish 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.  There were no reports that senior Spanish officials were engaged in the production or distribution of drugs, or in money laundering activities.

Cultivation/Production.  Spanish authorities believe cultivation or production of illegal drugs in Spain is not a significant problem.  Authorities seized one small cocainelaboratory in Madrid in 1994.

Drug Flow/Transit.  DEA estimates that 80 percent of all cocaine destined for Europe transits Spain, with most arriving via the Galician coast in northwestern Spain.  Spain is also a major transit country for hashish from North Africa destined for other parts of Europe.

Demand Reduction.  Spain emphasizes prevention and rehabilitation, in coordination with interdiction and prosecution.  The Spanish Drug Plan Office (PNSD) coordinates demand reduction efforts.

IV.  US Policy Initiatives and Programs

Policy Initiatives.  The USG cooperates closely with Spanish law enforcement officials, and offers law enforcement training opportunities to Spanish authorities, funded by the GOS.  In January 1994, DEA sponsored a two-day seminar on money laundering, the first such gathering of Spanish and USG counternarcotics officials and Spanish financial representatives.  In November, DEA sponsored a precursor and essential chemicals training conference for Spanish law enforcement officials.
 
The head of the Spanish drug effort and USG officials met to discuss a variety of narcotics-related issues in the fall of 1994; three ranking members of the Spanish judiciary and counternarcotics prosecutor's office visited the US in 1994 to study US judicial procedures.

USIA provides information to the Spanish authorities on all aspects of the drug threat, such as sharing USG experiences on money laundering and chemical diversion control.  In 1995, USIS expects to sponsor a world-net program devoted to the debate on the legalization of drugs.

The Road Ahead.  The USG looks to expanding existing bilateral cooperation with the GOS and identifying new areas of possible cooperation, particularly in Latin America.  The USG will encourage  continued Spanish support and active participation in multilateral antidrug organizations such as UNDCP and the Dublin Group.


SWEDEN

I. Summary

Amphetamines and cannabis/hashish are the most frequently abused drugs in Sweden.  Smaller quantities of heroin and LSD are also used.  Swedish authorities are concerned about increasing amounts of inexpensive amphetamines from Holland and Poland.  Amphetamine seizures surpassed cannabis seizures in 1994. 

The diversion of precursor and essential chemicals and money laundering are relatively minor problems in Sweden.  Sweden is active in a variety of international anti-drug fora, and is one of the largest donors to the UN International Drug Control Program (UNDCP).  Cooperation with USG law enforcement authorities continues to be excellent.  The Government of Sweden (GOS) ratified the 1988 UN Convention in 1991.

II. Status of Country

Sweden is not noted for illicit drug production, trafficking, money laundering, or precursor and essential chemical production.  The GOS takes a strict anti-narcotics stand and the Swedish National Institute for Public Health promotes a healthy lifestyle and subsidizes drug use prevention programs.  

The latest GOS study, published in 1993, indicated that there were 14,000-20,000 daily drug users in Sweden in 1992 (about two percent of the total population). 

Sweden is not a significant narcotics money laundering center.  Money laundering is a crime under Swedish law which requires banks and other financial institutions to identify new customers and register large currency tranaction with the central bank.  Swedish law allows for the seizure of assets derived from drug-related activity.

Sweden monitors imports and exports of all precursor and essential chemicals.  The Swedish Medical Products Agency is responsible for precursor and essential chemical control.

III.  Swedish Actions Against Drugs in 1994 

Policy Initiatives.  Swedish police have a cooperative, informal relationship with authorities in many countries to control drug smuggling.  Swedish customs officials train officials of Baltic nations in drug trafficking intelligence work.  An ongoing program, that was started in 1993, allocates $8.5 million to a three-year project for Swedish police and customs to assist the Baltic nations in constructing criminal surveillance centers.  Sweden participates in a number of anti-drug fora, including the UN Commission on Narcotic Drugs and the Dublin Group.  In 1994 Sweden contributed approximately $7 million to UNDCP.

Accomplishments.  Legislation pursuant to Sweden's EU accession on January 1, 1995 was passed in late 1994, including legislation relating to police and customs controls.  In 1994, Swedish law enforcement officials were assigned to Tallinn and Riga.  Swedish police and customs drug liaison officers also are posted to The Hague, Bangkok, Athens,, Copenhagen, Lisbon, London, Warsaw, Bonn, and Budapest.

Agreements and Treaties.  Sweden ratified the 1988 UN Convention in 1991 and is fully meeting the Convention's goals and objectives.  Sweden also is a party to the 1961 Single Convention, as amended by the 1972 Protocol, and to the 1971 Convention on Psychotropic Substances.  Sweden has bilateral customs agreements with the United States, Germany, the United Kingdom, the Netherlands, France, Finland, Denmark, Norway, Iceland, Spain, and Poland.  New customs agreements came into force in early 1994 with Russia, Estonia, and Hungary.  Sweden cooperates with the United States under a 1984 extradition treaty.

Law Enforcement.  Swedish law enforcement authorities are efficient and effective.  In 1994, Swedish authorities seized 21 kilograms of heroin (compared to 22 kilograms in 1993), 29 kilograms of cocaine (compared to 13 kilograms in 1993) and 457 kilograms of cannabis products (compared to 563 kilograms in 1992).  In 1993, (1994 figures have not yet been released) they prosecuted 7,200 people for narcotics-related offenses.

Corruption.  Swedish anti-corruption laws deter public officials from facilitating the illicit production or distribution of drugs and from the laundering of drug money. Corruption is very rare and when discovered is severely punished.

Cultivation/Production.  In 1994, five small laboratories producing amphetamines were seized and destroyed by the police.  No other illicit drugs are known to be produced or cultivated in significant amounts in Sweden. 

Drug Flow/Transit.  Sweden is a destination country for narcotics, which enter the country in commercial goods, overland, by mail, by air and by ferry from Poland, Denmark, Finland (from Russia) and the Baltic nations.  Once in Sweden, few drugs are shipped to other countries.

Swedish officials are particularly concerned about the increase in illicit drugs smuggling from Poland and through the Baltics and Russia.  The Netherlands remains the main source for amphetamines, but increasing amounts of amphetamines originate in Poland.

Demand Reduction Programs.  The GOS emphasizes drug abuse prevention combined with a restrictive drug policy, enforcement measures, and drug rehabilitation.  Under Swedish law, drug abusers can be sentenced to drug treatment.  The Swedish National Institute of Public Health coordinates all drug preventive efforts.  The dissemination of information on the dangers of drug abuse is compulsory in Swedish schools.  Political, religious, sports, and other organizations receive government subsidies to carry out information and activity programs aimed at youth and parents.  Various private organizations also are active in drug abuse prevention and public information. 

 IV. US Policy Initiatives and Programs

The USG looks to strengthen its good counternarcotics law enforcement cooperation with the GOS.  In 1994, the USG had no counternarcotics programs in Sweden.

The Road Ahead.  The USG will encourage Sweden to continue their support of UNDCP and, along with other European countries, to expand their efforts to assist the counternarcotics efforts of the Newly Independent States of the former Soviet Union.


SWITZERLAND

I.  Summary

Switzerland is mainly a drug consumer country, although some marijuana is cultivated as well.  Drug-related deaths are down, but authorities believe considerable amounts of narcotics continue to enter the country.  Most of the drug trade is controlled by non-Swiss.

Cantonal governments (states) have autonomy on narcotics policy resulting in varying degrees of tolerance for drug abuse and differing enforcement procedures.  Unlike previous years, only the city of Zurich still tolerates an open drug scene; drug-related violence increased to unprecedented levels in Zurich by mid-1994. 

Switzerland is a major financial center, and has been used by international narcotics traffickers for money laundering.  The Government of Switzerland (GOS) has money laundering laws and has implemented a number of law enforcement measures to control money laundering.

Switzerland produces some precursor and essential chemicals, but diversion is not considered a problem.  The GOS does have controls on many precursor and essentials chemicals.
 
The Swiss government has not ratified the 1988 UN Convention.  It has been delayed by public opposition to the Convention's provisos against the purchase and possession of narcotics for personal use. 

II. Status of Country

The GOS does not compile national statistics on drug use, but authorities believe consumption is slowly increasing.  Heroin abuse is the greatest concern, but cocaine and synthetic drug use also are troublesome.  Authorities report a slight decline in drug-related deaths (357 in 1993 versus 157 for the first six months of 1994).

Under the Swiss federal system, substantial autonomy is accorded to cantonal and city governments in law enforcement and drug policy matters.  This results in varying degrees of tolerance for drug abuse and differing enforcement policies, but only the city of Zurich still has an open drug market.

Drug-related violence increased in Zurich in 1994 as Lebanese and Kosovo Albanian gangs sought to dominate the heroin distribution market.  In an effort to control Zurich's open drug scene, the GOS authorized pilot projects to distribute narcotics under medical supervision, and increased thedetention and eventual return of addicts to the Swiss regions from which they came.

 Swiss authorities believe that drug-related money laundering decreased in 1994 due to greater diligence by financial institutions and more aggressive law enforcement measures.   Switzerland is an active member of the Financial Action Task Force (FATF), and Swiss money laundering laws are in accordance with the Council of Europe's convention on money laundering.
 
The GOS controls the export of most precursor and essential chemicals.  Swiss authorities believe some chemicals were diverted to drug producing countries in 1994, including the diversion of ephedrine to illicit drug manufacturers in Mexico.  In late 1994, the GOS was working to revise its legislation to bring additional chemicals under regulation by mid-1995.

III.  Country Actions Against Drugs in 1994 

Voters approved in December a stricter law authorizing the detention of foreigners suspected of criminal activity (including narcotics trafficking) for up to nine months.  Previously, foreigners suspected of criminal activity could only be incarcerated for one month.

The Federal Council (cabinet) will assign Swiss police officers to a dozen diplomatic missions abroad to improve international law enforcement coordination.  Officers will be assigned to Interpol in Lyon, and to Washington in 1995.   Additional officers will be assigned to other locations in 1996.  The Federal Council announced plans to strengthen its financial support for drug therapy programs in 1995, and to assume a portion of the construction costs of a new detention center for drug traffickers in Zurich.  It also implemented a test program for the medically controlled distribution of narcotics to addicts.

The GOS appointed a group of experts, including scientists, members of the political parties, and government officials to identify areas where Swiss counternarcotics laws need to be strengthened.  This group will announce proposed changes at a national conference in February 1995.  Proposals reportedly will involve early attention to treat new addicts, tougher measures to control drug traffickers, and better cooperation between the local authorities.  

Agreements and Treaties.  Switzerland signed, but has not yet ratified, the 1988 UN Convention.  The GOS must resolve the question of public opposition to mandatory punishment of narcotics users.  To fully comply with the Convention, the government needs to expand controls of additional precursor and essential chemicals.  The USG expects the February 1995 experts conference to address these issues.  Switzerland is a party to the 1961 Single Convention, and its 1972 Protocol.  The USG and GOS have a mutual legal assistance treaty signed in 1977, and an active extradition treaty dating from 1900.  Switzerland in 1994 extradited to the US two individuals sought on drug trafficking charges.

Law Enforcement.  Swiss law enforcement authorities believe increasing amounts of cocaine are entering Switzerland. In the first six months of 1994, authorities seized 87 kg. of cocaine compared to 333 kilograms for all of 1993.  During the same period, authorities seized 133 kilograms of heroin compared to 178 kilograms in 1993, and 326 kilograms of marijuana/hashish in 1994 compared to 683 kilograms in 1993.

The GOS and USG have cooperated actively in the sharing of forfeited assets.  For example, in December the USG transferred $1 million in forfeited trafficking proceeds to the GOS in recognition of Swiss cooperation in the drug trafficking prosecutions.

Corruption. Corruption is not considered a problem.  The GOS does not as a matter of policy or practice encourage or facilitate the illicit production or distribution or drugs or the laundering of money.  Swiss authorities reported no cases of drug-related corruption among high-level officials in 1994.

Drug Flow/Transit.  Switzerland is an important connecting point for flights from Asia, the Middle East, and Africa, and attracts traffickers from those regions.  Most of the drugs transit Switzerland to other European countries.  Swiss authorities believe distribution of heroin in Switzerland is controlled by Lebanese or Kosovo Albanians who reside in the country illegally, or are seeking asylum.

Cultivation/Production.  Small quantities of marijuana are cultivated for personal use; authorities seized 737 plants in the first six months of 1994.

Demand Reduction Programs.   The GOS emphasizes demand reduction  and prevention over law enforcement.  In 1994, the government evaluated 14 pilot projects started in 1993 involving 600 addicts who receive daily doses of methadone, morphine, or heroin.  Results of the program are mixed.  Addicts receiving heroin improved their health and housing conditions, while addicts receiving morphine dropped out of the program due to health side-effects.  Based on the success of the heroin distribution program, the GOS will expand it to a total of 1,000 addicts.  The GOS will continue to evaluate the morphine/methadone program.

IV.  US Policy Initiatives and Programs 

USG and GOS law enforcement cooperation is good.  Authorities  regularly exchange information on illicit drug shipments, andextradition cases.  The two countries also exchange information on drug policies/programs through multilateral organizations such as the UNDCP and the FATF.

The Road Ahead.  The USG looks forward to continued close law enforcement cooperation with Swiss authorities.  Over the next year, the USG will encourage the Swiss government to ratify the 1988 UN Convention, add additional precursor and essential chemicals to its export control list, and continue supporting multilateral counternarcotics organizations such as the UNDCP.


TURKEY

I.  SUMMARY

Forming a natural land bridge for Southwest Asian heroin destined for Europe and America, Turkey is a natural conduit for narcotics trafficking.  The evidence is compelling:  Interpol estimates almost three-quarters of all drug seizures and arrests in Europe involve Turkish traffickers and narcotics that came through Turkey.  There is increasing evidence that drugs from Turkey are shipped to the U.S. as well.

In close cooperation with the United States, the Turkish government is striving to curb the drug trade.  Traditional U.S. assistance enhances Turkey's investigative and interdiction capabilities with training and equipment.  A new U.S.-funded project supports research on domestic drug abuse.  A second new project, coordinated with a companion UNDCP project, will strengthen the interdiction capabilities at land border at customs gates with neighboring countries through training and equipment.  On the policy side, the U.S. continues to urge Turkey to act expeditiously on ratification of the 1988 UN Convention (and accompanying laws on money-laundering, asset seizure, and controlled delivery), which moved to Turkey's parliament in fall 1994.

II.  Status of Country

Turkey's preeminent narcotics challenge is curbing the production of heroin and the trafficking of heroin and hashish across the Anatolian plateau destined for Europe and America.  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.  Traffickers continue to use Turkey's overland routes for the smuggling of Captagon (FENETHYLINE) to the middle east.

DEA in Turkey now estimates that as much as one-half of the opium and hashish transits Turkey by air and sea routes, as ethnic strife in Turkey's southeast and the conflict in former Yugoslavia disrupt traditional overland routes through Turkey and the Balkans.  However, thousands of trucks continue to traverse Turkey each year, enabling traffickers to move large quantities of drugs overland from Asia to Europe and the United States.  Traffickers also 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 southeast Turkey, and with increasing frequency in the Marmara region south of Istanbul.

Turkey is recognized as one of the "traditional" poppy growing countries by the International Narcotics Control Board (INCB) and the USG for licit cultivation of opium poppies to meet legitimate world demand for cooking and pharmaceutical uses.  The Turkish Government permits such cultivation in a limited number of provinces.  Due to its effective controls over cultivation and production, there is no evidence of leakage into illicit channels.  The government pays high prices for the poppy straw, levies heavy penalties for collecting opium gum and carefully monitors growing areas.

 The government's Bolvadin alkaloid plant, uses the Concentrate of Poppy Straw (CPS) method that grinds up the entire poppy plant, for the production of morphine used by international pharmaceutical companies.  The CPS factory is the largest of its kind in the world.  Turkey increased cultivation 33.6% in 1994 because of increased demand for its morphine.

In the fall of 1994 the government signaled its resolve to enact critical money laundering legislation by moving the 1988 UN Convention to Parliament for ratification, with accompanying laws on money laundering, asset seizure, and controlled delivery.  Early in 1995 the legislative package was reported out of the Justice Committee, but the legislation still must be reviewed by one or two other committees before it comes to a vote.  Currently, however, Turkey has no legislation prohibiting money laundering.  Turkey is considered to be a medium-high priority for money-laundering because of the lack of controls and the likelihood that some drug profits are returned to Turkey for investment in legitimate businesses.

III.  Country Action Against Drugs in 1994

Policy Initiatives.  The government has drawn up an integrated, three-year narcotics strategy, long sought by the USG, to boost the effectiveness of Turkey's interdiction efforts and improve assistance coordination among donors.

As mentioned, in fall 1994 two companion bills moved from the Prime Ministry to the Parliament, where the government hopes they will be enacted in 1995.  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:

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

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 UN Convention annex.

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

Accomplishments.  Despite the magnitude of drug trafficking across Turkey (DEA estimates between three and five metric tons of heroin and morphine base transit Turkey each month on its way to Western markets) US-Turkish cooperation has yielded impressive results over the past several years, although seizures of heroin and hashish declined in 1994 in the absence of spectacular seizures that skewed results in 1992 and 1993.

 For the first 11 months of 1994, Turkish National Police (TNP) seized 1,591 kgs of heroin and 233 kgs of morphine base.  During 1994, TNP officers in the Istanbul area sezed four large functional heroin laboratories, aided in part by USG provided equipment.  In the previous five years, only one laboratory had been seized.  On Christmas day, 1994, TNP seized one of their largest shipments of acetic anhydride ever:  16.5 metric tons on the M/V Searim, a Honduran flagged vessel from Lebanon unloading its cargo off of the Turkish Mediterranean island of Dana (opposite the coastal town of Silifke).

Law Enforcement Efforts.  Turkish enforcement agencies cooperate closely with the U.S. and other user countries, aggressively pursue drug investigations, and prosecute traffickers.  The principal law enforcement agencies are the TNP and the Jandarma (rural police).  With the help of DEA and U.S. Customs Service training, and INM-financed search and detection equipment, the Customs Undersecretariat is creating a professionally trained cadre of narcotics interdiction agents, a first for Turkish Customs.  The Turkish Coast Guard is also playing a growing role in interdiction.

The USG believes that only a small fraction of the heroin passing through Turkey is seized, despite the efforts of Turkish authorities.  This is in part due to manpower and financial shortages.  There are a mere 140 narcotics officers in Istanbul, a major drug transit and processing center with a population of over ten million.  It is also due to the increasing sophistication of traffickers, using sophisticated equipment beyond the reach of traditional police intelligence-gathering methods.  Limited finances prevent Turkish law enforcement agencies from purchasing the most advanced law enforcement equipment.

Corruption.  The Turkish Government has a history of vigorous punishment of 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.

There are, however, occasional instances of alleged corruption within the police and criminal justice systems, perhaps exacerbated by the low pay of police officers.  While senior law enforcement and most other government officials fully cooperate on narcotics interdiction efforts, drug cases 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.  The USG and the GOT have longstanding bilateral treaties covering extradition and mutual assistance in criminal matters as well as a Narcotics Assistance Protocol.  The USG made no requests under the extradition treaty in 1994.  Turkey is a party to the 1961 UN Single Convention on Narcotic Drugs (but not to its 1972 Protocol), and to the 1971 Convention on Psychotropic Substances.  As noted, progress is being made on ratification of the 1988 UN Convention.

 Domestic Programs.  During the past several years, domestic consumption of both heroin and cocaine has increased, in marked contrast to prior years when Turkey could find comfort in its historically low rates of substance abuse.  The Director of the widely respected Istanbul Research and Treatment Center for Alcohol and Substance Addiction (AMATEM) drug treatment clinic and research center, outside Istanbul, has confirmed that drug abuse is climbing.  This troubling trend has been noted both among affluent young urban dwellers, particularly in Istanbul, and among residents of outlying regions torn by ethnic conflict and wracked by poverty and high unemployment.  The GOT is implementing demand reduction programs in the Istanbul area, with the Turkish National Police organizing programs in the schools.

IV.  U.S. Policy Initiatives and Programs

U.S. Policy Initiatives.  The USG continues to urge the government to ratify the 1988 UN Convention, with accompanying laws on money-laundering, asset seizure, chemical regulation, and controlled transfer.  The USG also encourages Turkey to play a greater regional role in coordinating interdiction and training efforts with the Newly Independent States.  The USG is also providing assistance and guidance to AMATEM clinic in an effort to both obtain more accurate statistics on the addict population and to conduct demand reduction campaigns.

Bilateral Cooperation.  The U.S. and Turkey cooperate closely against narcotics trafficking.  The USG focuses its assistance on training and equipment support for Turkish National Police operations and intelligence gathering activities.

In 1994, the USG inaugurated a new program of assistance to the Customs Undersecretariat to improve interdiction at Turkey's primary customs crossings with Bulgaria, Iran, Iraq, Syria, and Georgia.  DEA and U.S. Customs provided training in 1994 to help the Undersecretariat create a new cadre of officers with narcotics interdiction skills.

The USG also inaugurated a new project with the AMATEM, funding drug abuse research and providing computer hardware to track trends.  At the U.S. Mission's request, experts from the U.S. National Institute of Drug Abuse visited AMATEM in 1994 and are providing technical assistance.

In light of growing maritime trafficking patterns, the U.S. Coast Guard offered basic interdiction training to its Turkish counterparts.

The Road Ahead.  As Turkey edges toward the 21st century, there are troubling signs on several fronts in the war against trafficking.  Ethnic conflict in Turkey's southeast and the collapse of the Soviet Union have spawned new overland trafficking routes through the NIS, and maritime routes through the Suez Canal, all converging in Istanbul.  Istanbul traffickers orchestrate their multi-ton, multi-million dollar deals with the latest communications technology.  Finally, there are signs of domestic drug abuse problems, centered for now in Istanbul, but spreading also to outlying rural areas and covering the spectrum from the poorest (glue, hashish, and heroin) to the richest (cocaine) elements of the population.  Against this backdrop, U.S. assistance across the board -- for training, search and detection equipment, and for research at AMATEM clinic into emerging drug abuse trends -- has never been more important.

[CHART:  TURKEY STATISTICAL TABLES]
[GRAPHIC:  TURKEY HEROIN SEIZURES 1989-1994]


UKRAINE

I.Summary

There was an increase in narcotics trafficking through Ukraine on its way to Europe in 1994.  Also, there was an upswing in drug use among the general population, particularly among the young.  This situation has led to increased concern on the part of the Government of Ukraine (GOU) over money laundering as local narco-traffickers look for ways to hide their profits.  Ukraine no longer permits the cultivation of narcotics related crops, although government officials acknowledge that opium poppy is still grown in southwestern Ukraine.  GOU awareness of the problems associated with narcotics has become more acute, although implementation of new programs to combat drug use and trafficking in Ukraine has lagged for lack of training and resources.  Moreover, Parliament has not yet adopted new anti-drug legislation, and possession of small quantities of drugs for personal use remains legal in Ukraine.

II.Status of Country

Drug trafficking networks continue to exploit Ukraine's location on the Balkan and Afghanistan drug shipment route and its traditional role as an opium poppy producer.  Ukraine was once a source of licit poppy for the Soviet Union, and authorities note that poppy continues to be grown in some areas.  The extent of such cultivation is unknown.

Authorities believe that small organized gangs control most of the domestic drug activities in Ukraine.  One Ukrainian official estimated in 1993 that there were 500 such gangs producing and distributing opium poppy straw in the eastern cities of Kharkiv, Dnipropetrovsk and Donetsk.  Most of these gangs are Ukrainian or from Central Asia and the Transcaucus states.

Drug smugglers are making increasing use of Ukraine as a conduit for drugs from Central Asia and Afghanistan to Western Europe.  Over the last two years the GOU seized over 50 metric tons of illicit drugs, including hashish, opium, poppy straw, and amphetamines, and estimate that this amount is less than one-half of what now passes through Ukraine annually.  In October 1994 a Colombian was arrested at Borispil Airport with 6.4 kilos of cocaine.

The Ukrainian Ministry of Internal Affairs reports that there has been an increase of 40 percent in the number of drug users in Ukraine in the last year.  The Ministry of Health reports a decline in the number of registered addicts from 54,000 to 30,000.  Officials of both ministries concur in an estimate of 500,000 drug users, primarily young, in a population of 52 million.

Strict governmental controls and the lack of a free exchange system make Ukraine an unattractive location for money laundering.  Ukrainian criminal groups are assumed to transfer their profits to Europe and capital flight is a large problem for Ukrainian authorities and one which they take very seriously.  Crimea has become a haven for Russian banks and, it is reported, a money laundering center for Russian criminal enterprises.

During the Soviet period Ukraine was a major producer of chemicals, and production was controlled from Moscow.  Ukraine is still a major chemical producer, but the GOU has not yet established the necessary controls to monitor chemical production or exports.  Ukraine has no laws that directly address the issue of chemical precursors for narcotics use, nor are the chemical companies held responsible for their export policies.

III.Country Action Against Drugs in 1994

The Committee for Combatting Narcotics and Narcotics Addiction, formed in 1993, was upgraded to the Ministerial level in 1994, and Deputy Prime Minister Yevhen Marchuk, former head of the Ukrainian Security Service, was put in charge of it.  According to GOU officials, Marchuk has overseen the drafting of a three year plan to combat narcotics that was under consideration by the Cabinet of Ministers in late 1994.  Marchuk is expected to release a report on Ukrainian counternarcotics efforts in early 1995.  The Parliament has also begun to consider a national drug policy which is expected to be passed soon.  

The Security Service of Ukraine cooperated with the DEA and Dutch Government organizations in 1994 to seize a shipment of precursor chemicals transiting Ukraine.  Ukrainian authorities claim to have confiscated more than 50 metric tons of narcotics over the past two years.  However, a lack of training and limited funding have impeded the efforts of police and security services to enforce drug laws.

Corruption.  President Kuchma has made fighting government corruption a major priority of his administration.  His first decree in office was an anti-corruption measure which addressed public concerns about corruption, but it has yielded few convictions.  Corruption is still considered to be widespread, but is rarely reported as drug-related.

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.  In early 1995, Ukrainian officials hope to adopt legislation that will address the goals of the 1988 UN Convention, but to date they have relied on the outdated and ineffective USSR penal code of 1961.  In 1994 the GOU signed an agreement with UNDCP to begin joint programs to combat and control illicit drug trafficking and use in Ukraine.


UNITED KINGDOM

I.  Summary

The United Kingdom (UK) is primarily a consumer country for illicit drugs.  British authorities believe marijuana is the illicit drug of choice, however heroin use is considered the UK's most serious drug use problem.  Amphetamines are relatively inexpensive and considered the second most popular drug in the UK.  Ecstasy, which is commonly found in the British club scene, is the most popular drug among youthful British club enthusiasts.  Cocaine use continues to grow.  In January 1994 British authorities seized the largest shipment of cocaine ever discovered in the UK. 

Her Majesty's Government (HMG) drug policy focuses on drug abuse treatment, drug abuse education, law enforcement, and international counternarcotics cooperation.  Locally based demand reduction programs are the foundation of domestic drug policy.

In April 1994, HMG enacted new money laundering regulations to further protect its financial institutions against money launderers.  British authorities actively monitor the trade in precursor and essential chemicals through a voluntary arrangement with the British chemical industry.

HMG ratified the 1988 UN Convention in 1991 and it is meeting the Convention's goals and objectives.  The UK contributes to international drug control efforts, bilaterally and multilaterally.  British officials actively participate in numerous international drug control fora, including the Dublin Group, the Financial Action Task Force (FATF), and the United Nations International Drug Control Program (UNDCP).

II.  Status of Country  

British authorities believe there are approximately 100,000 heroin addicts.  Authorities believe crack and cocaine use have increased, however the anticipated cocaine epidemic has not occurred, probably due to its high price in the UK.  In 1994 "ecstasy"-related deaths of several young people underscored the growing use of the drug  by young people in club scene.  British authorities also are concerned about the use of amphetamines which have been termed "the poor man's cocaine."

The UK produces and exports many precursor and essential chemicals.  HMG has chemical control legislation in place and the National Criminal Intelligence Service (NCIS) and the UK chemical industry cooperate in a voluntary monitoring scheme.  Additionally, HMG actively participates in the Council of Europe's Pompidou group which develops strategies to control trade in precursor and essential chemicals. 

British financial institutions have been vulnerable to money laundering.  The Criminal Justice (international cooperation) Act of 1993 which made money laundering illegal for all types of criminal offenses became effective on April 1, 1994.  Prior to enactment, only money laundering related  to narcotics and terrorism activities was illegal.  Offshore banking facilities in British territories (in the Caribbean and Hong Kong) also are believed to attract drug money and have adopted money laundering provisions.  HMG continues to actively participate in the Financial Action Task Force (FATF), and was the first to adopt the Council of Europe's directive on money laundering control.

III.  UK Counternarcotics Efforts in 1994 

Policy Initiatives.  HMG continued its active participation in international counternarcotics efforts.  In the Dublin Group, HMG chairs the Southwest Asia regional working group and participates in mini-Dublin Groups located in the capitals of most major drug producing and transit countries.  The UK provides bilateral anti-drug assistance to South America, and in Southwest Asian countries.  HMG contributed approximately $5.3 million to UNDCP in 1994.

In October 1994, HMG proposed a new domestic drug strategy.  The new strategy, "Tackling Drugs Together," focusses on increasing community safety from drug related crime, helping young people resist drugs, and reducing the health risks of drug abuse.  This strategy would be implemented through "drug action teams" comprising of police, probation, health, education, and prison authorities.   HMG plans to publish a formal proposal for Parliament to review in the Spring of 1995.

Accomplishments.  British authorities seized 1,300 kilos of cocaine in January 1994, the largest single cocaine seizure ever in the UK.  The cocaine originated in Venezuela and was destined for Poland where it would have been distributed throughout Europe.

In 1994, the British Parliament passed a new stringent criminal act law, which provides for longer sentences for illict drug use.

Agreements and Treaties.   HMG ratified the 1988 UN Convention in 1991, and is fully 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 1994 HMG extradited several persons wanted in the United States for drug-related offenses.  The USG and UK have an agreement allowing US Coast Guard personnel to serve aboard British ships patrolling Caribbean waters to control maritime drug smuggling. 

Law Enforcement Efforts.  British law enforcement officials  are vigilant and effective.  In 1993 HMG seized nearly 56,000 kilograms of controlled substances (of which nearly eight percent was cannabis) and convicted, cautioned or fined 83,221 drug offenders.  In 1993 there were 70 to 80 prosecutions for money laundering.  Drug-related seizures prosecutions for 1994 have not yet been compiled.

Corruption.  The UK is free of narcotics-related public corruption.  HMG's anti-corruption laws deter public officials from facilitating the illicit production or distribution of drugs or the laundering of drug money.

Cultivation and Production. HMG authorities detected and destroyed a few laboratories manufacturing small amounts of LSD, amphetamines, and ecstasy.  A small amount of marijuana is grown in the UK exclusively for domestic consumption which authorities destroy when discovered.

Drug Flow/Transit.   Heroin and marijuana shipments generally originate in Afghanistan and Pakistan and are routed through the Balkans.  There is increasing concern about Russian organized crime transporting drugs to/through the UK.  Cocaine shipments usually arrive direct from Central and South America. 

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 harmful effects of drugs, dissementing information, offering training seminars for youth workers, and organizing diversionary activities for youngsters.

IV. US Policy Initiatives and Programs 

Since 1989 the USG and HMG have conducted periodic  consultations coordinating counternarcotics policies, plans and programs, in all areas of the two government's anti-drug efforts.  The USG does not have counternarcotics programs in the UK.  USG and HMG law enforcement cooperation is excellent.

HMG cooperation with the USG to trace or seize assets is good.  HMG local laws permit sharing of forfeited assets only with the USG.

The Road Ahead.  The USG will encourage HMG to maintain its support to UNDCP, its active participation in the FATF and the Dublin Group, and its good counternarcotics maritime cooperation with the USG in the Caribbean.  The USG will look to the UK, along with other Western European countries, to continue assisting Central Europe and the Newly Independent States with their anti-drug efforts. 


THE FORMER YUGOSLAVIA

I.Summary

The conflict in the territory of the former Yugoslavia and the nature of our relatinship with some of the succesor regimes there have severely limited information on the narcotics situation and drug control efforts in this region.  The information that is available is largely anecdotal.

An alternate "Balkan Drug Road" has been established running through the Southern Balkans, across the Adriatic Sea to Italy.  The Italian Mafia is allegedly involved in the smuggling of drugs on this route.  Drug abuse in the former Yugoslavia is still relatively minor compared to abuse in West European countries.  Belgrade provides and ideal location for laundering of drug money, however, the extent of its use is unknown.

II.Status of Region.

The Balkan Drug Road.  Prior to the breakup of the former Yugoslavia, Serbia/Montenegro served as a principal transhipment point point for the northernly movement of drugs from the Golden Crescent -- Afghanistan, Iran and Pakistan -- into Western Europe.  The Serbian town of Dimitrovgrad, on the Bulgarian border, reputedly held the European record for total amount of drugs seized.  

With the outbreak of the Serbo-Croat conflict in the summer of 1991 and the subsequent closure of the main north-south arterial between Belgrade and Zagreb, the drug transit corridor shifted east and north.  This trend is underscored in the INCSR chapters on Romania, Hungary, the Czech Republic, Slovakia, Poland and the Baltic States.  The shift was further reinforced when United Nations' sanctions were imposed in May 1992.  

As authorities began to target the newer East European route, traffickers responded by developing another route using the southern part of the former Yugoslavia.  This alternate route runs along the Southern Balkans -- Bulgaria, Macedonia, Albania, Kosovo and Montenegro -- providing a conduit for drugs moving West from the Black Sea to the Adriatic.  Boats from Albania and Montenegro, allegedly under the control of the Italian mafia, transport drugs across the Adriatic to Italy.  

Drug Abuse.   A weak criminal code neither distinguishes between dealers and users nor between soft and hard drugs.  As a result, drug addiction is on the rise, though the problem is still relatively minor compared with drug addiction in Western European countries.  Statistics on addiction and drug abuse are unreliable , with the number of addicts in Belgrade ranging from 10,000 to 50,000 in a population of 1.5 million.

Money Laundering.  With its weak banking regulations and cash-based economy, Belgrade provides an ideal location for laundering of drug money.  The extent of its use for this purpose may be revealed in INTERPOL's "Eastwash" project, established to assess the prevelance of money laundering in Central European and CIS countries including the former Yugoslavia.  

 Corruption.  Although the USG has no hard facts, there are anecdotal reports of official, drug-related corruption in the former Yugoslavia.


CENTRAL ASIAN STATES

KAZAKHSTAN, KYRGYZSTAN, TAJIKISTAN, TURKMENISTAN, UZBEKISTAN

I.Summary

The drug trade is accelerating in Central Asia.  Drug trafficking interests appear to be targeting all five countries to smuggle drugs, obtain supplies and expand markets and there are no indications that this trend will abate in 1995.  Expanding air, road and rail links, particularly westward, but also into China, Afghanistan and Iran, combined with inadequate border controls make this region vulnerable to drug interests.  Reports of endemic corruption and armed conflict in Tajikistan are further attracting drug smuggling operations.  Although no current figures are available, it is known that Uzbekistan authorities seized over 30 tons of hashish in the period December 1992 - February 1993, as well as several tons of opium enroute to Turkey.  Western authorities believe such trafficking has continued.  Officials from Tajikistan continue to note that Afghan opium is often traded for arms and supplies on the Tajik-Afghan border.  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 and appears to be escalating.

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, in Turkmenistan, Kyrgyzstan, Uzbekistan, and Kazakhstan.  Tajikistan authorities continue to indicate that opium poppy cultivation is increasing in the Afghan border regions.  Despite increased reporting of a rising population of injectable opium poppy extract users, government authorities in the Central Asian States do not yet view domestic drug use as a serious problem.

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.  However, cannabis and opium poppy extract are the most widely used drugs.  Russia, the largest consumer of Central Asian opiates and cannabis, has become increasingly concerned about criminal organizations' increased smuggling operations into Moscow and elsewhere in Russia.  

Most drug trafficking organizations that operate in Central Asia are local criminal gangs, according to domestic counterdrug authorities.  Also, there are some reports of criminal elements from Russia and the Transcaucas region establishing drug connections in Central Asia.  In addition, to cultivation and smuggling operations, these groups have tapped into licit controlled pharmaceuticals.  The pharmaceutical plant in Chimkent,  Kazakhstan which operated for the entire Soviet Union was closed in 1991, but resumed operation in 1993 with the purchase of 50 tons of raw opium from India.  Another 100 tons of Indian raw opium is scheduled to be processed from 1994 to 1995.  According to Kazakhstan authorities the clandestine diversion of opium and manufactured drugs from the plant is increasing.

The underdeveloped and inefficient banking systems in these States are not currently conducive to money laundering operations.  However, as commercial links with the West evolve this too could become a growing problem.  

In 1994 all five Central Asian States have continued their antidrug efforts.  Kyrgyzstan has developed a domestic counterdrug strategy which is now in force.  Kazakhstan and Uzbekistan have also developed antidrug plans.  Kazakhstan's plan is expected to be approved in 1995.  All governments have attempted some limited eradication of opium and seizures of illicit narcotics begun under the Soviet Union but, limited resources have hampered any real success in this area.  Efforts to coordinate a regional response to the drug problem have been limited.

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.  In April 1994 Kyrgyzstan's parliament approved accession to the UN Conventions, and implementing legislation should be considered by the parliament in 1995.  The other four Central Asian States have exressed the intention to bring their laws and drug control mechanisms into compliance with the objectives of the UN Conventions, but little actual progress was made in 1994.


KAZAKHSTAN

II.Status of Country

Well-organized criminal networks of inter-regional scope appear to be increasingly entrenched in Kazakhstan.  Authorities believe that these organizations have established expansive contacts with the Newly Independent States (NIS), but particularly Russia.  They are targeting Kazakhstan as a source of opiates for the region and as a key transhipment point for smuggling drugs to Russia and the West from Southwest Asia.  Kazakhstan is also emerging as a drug market.  

Kazakhstani authorities believe that illicit opium poppy cultivation is accelerating.  Some limited eradication of opium poppy continues, but there are no official estimates of the extent of this growth.  Officials are even more worried about wild cannabis in the Chu Valley, where Interior Ministry (MVD) eradication efforts are severely limited, since MVD no longer receives helicopter support from Moscow.  Some cannabis from this region continues to appear in Western Europe.  Authorities are also concerned about increased diversion of licit opiates. 
 
Kazakhstan's location as a crossroads for Central Asia and the NIS combined with ineffective border and customs controls have prompted an increase in smuggling opportunities.  Recent reports by custom authorites confirm such activity and show a dramatic increase in drug arrests and seizures in 1994; 74 cases in 1994 as opposed to 11 in 1993, and one each in 1992 and 91.  Authorities are also concerned about an increasing amount of drug traffic detected along the Chinese border.  

Domestic drug use continues to grow, but is not yet considered a serious threat by the Government of Kazakhstan (GOK).  Marijuana remains the most prevalent drug, but health officials report that the use of homemade opium poppy straw derivatives is on the rise.  There were 14,881 registered drug abusers in Kazakhstan in 1994.  Approximately 6,000 of these were classified as addicts, most under 30 years of age.  In addition, the GOK believes there are over 200,000 occasional illicit drug users.

III.Country Action Against Drugs in 1994

The GOK is bolstering its antidrug campaign and recently developed a four year (1994 - 1997) national drug control strategy, which is under parliamentary policy and funding review.  As a further sign of increased commitment the GOK has established the State Narcotics Enforcement Committee to coordinate the government's anti-narcotics efforts.  The Parliament is reviewing new law enforcement and customs legislation.

Authorities indicate that international narcotics control training programs and institutional and legislative changes are paying significant dividends.  During 1994, over 10 tons of narcotics were seized, over 9,400 narcotics-related criminal cases investigated, and 115 narcotics "dens" eliminated.  Nevertheless, law enforcement efforts are severely hampered by limited resources. 

Cultivation/Production.  Marijuana remains the primary drug crop, although ephedrine and opium poppy cultivation continue to expand.  Approximately 138,000 hectares of cannabis grow wild in the Chu Valley with some 30,000 additional hectares of growth in other region of Kazakhstan.  Government authorities estimates that Kazahkstan can produce 5,000 tons of marijuana each year.  The GOK is considering large-scale aerial application of herbicides in the Chu valley, but is concerned about environmental risks. 

Opium poppy cultivation is concentrated in southern Kazakhstan.  There are no data available on yield or the extent of cultivation.  Wild-growing ephedra plants are found in abundance in the Zailyiski and Junggar mountain ranges.  The government estimates that approximately 2,000 tons of ephedra can be harvested in Kazakhstan during a single summer, and it is aware that clandestine production of ephedrine is increasing.

Eight types of licit drugs, including morphine, codine, promedol, thebaine, and ethylmorphine, are produced from raw opium in the largest bio-pharmaceutical plant in the NIS located at Chimkent.  Shut down from 1991 to 1992, production resumed in 1993 with the purchase of 50 tons of raw opium from India.  Another 100 tons of Indian raw opium is scheduled to be processed from 1994 to 1995.  According to the GOK, the clandestine diversion of opium and manufactured drugs from the plant is increasing.
 
Corruption.  Corruption is reportedly widespread within the government and some narcotics-related corruption incidents have been reported.  In November, three employees assigned to the MVD's Organized Crime and Corruption Department were arrested after attempting to sell three kilos of opium worth an estimated USD 5,000.  The GOK is concerned with the extent of official corruption and has begun an anti-corruption campaign.

Agreements and Treaties.  Prior to the dissolution of the Soviet Union, the new republics, including Kazakhstan, agreed that they would continue to observe the treaties to which the USSR was a party, including the 1961, 1971 and 1988 UN Conventions.  The GOK is preparing and approving legislation to fully comply with these Conventions, and it is reported that the procedure for accession to the 1961 Convention is already underway.  Kazakhstan is a member of the Customs Cooperation Council, INTERPOL, and has observer status at meetings of the UN Commission on Narcotic Drugs.


KYRGYZSTAN

II.Status of Country

A key smuggling route is the road linking Tajikistan's volatile Gorno Badakhshan region with the Kyrgyz city of Osh.  This road is reported to be used for smuggling both opium produced in Tajikistan and opium and heroin from Afghanistan.  Government of Kyrgyzstan (GOK) officials estimate that drugs transiting this route more than doubled in 1994, and that as many as 60 kilos of opium now enter Kyrgyzstan daily from Tajikistan.  From Kyrgyzstan the smuggled drugs are moved on to the west through other of the Newly Independent States (NIS), such as via Central Asia - Caspian Sea - Transcaucasia - Turkey.  The airport in Bishkek handles charter flights from high-threat countries, and is another access point for drug smugglers.  The country's underpaid, understaffed and resource poor law enforcement agencies are poorly equipped to increase interdiction operations.  GOK authorities believe that the problem will only escalate. 

Estimates of drug users, mostly marijuana and hashish, rose 10 percent in 1994 to 55,000.  There are 2,321 registered drug addicts.  Drug abuse among adolescents is reported to be growing especially fast.

Kyrgyzstan has no laws which address money laundering, nor has it adopted "due diligence" or "banker negligence" laws.  While Kyrgyzstan's banking system is all but inoperable and could only be of limited use to money launderers, there have been unsubstantiated reports that foreign entities are looking to or have already established banks in Kyrgyzstan as fronts for money laundering.

III.Country Action Against Drugs in 1994

In April 1994 Parliament approved the GOK decision to accede to the 1961, 1971 and 1988 UN Conventions.  Implementing legislation which contains provisions for modern enforcement procedures was submitted to Parliament in October 1993, where approval was initially delayed and then fell victim to President Akayev's actions in barring the convening of Parliament in the fall of 1994.  The implementing legislation should be considered and approved when the new Parliament convenes in summer 1995.  
 
The State Commission for the Control of Illicit Drugs which was formed in 1993 to coordinate all government drug enforcement activities, has not fulfilled its mandate.  As a result of this and other factors, including budgetary constraints, little progress has yet been made in carrying out the five year National Program to Combat Drug Addiction and Illicit Trafficking, which was adopted in 1993.  

Seizures in 1993 totalled close to 2 tons of narcotics, including 500 kilos of cannabis, 153 kilos of opium and 500 kilos of poppy straw.  In the first six months of 1994, opium seizures increased to 200 kilos.  GOK authorities reported the destruction of 418 opium and cannabis plantations.  In addition, 1,836 hectares of wild cannabis were eradicated.

Cultivation/Production.  Kyrgyzstan was once the source of 16 percent of the world's annual production of licit opium.  Opium poppy cultivation was banned in 1973.  According to GOK officials, opium poppy cultivation in Kyrgyzstan is now insignificant, although there are no official estimates of how much is grown.  Cannabis grows wild in Kyrgyzstan's Chu Valley and in other parts of the country as well.  The country's potential annual marijuana yield is estimated at 2,300 tons.  Ephedra plants which are used to produce the stimulant ephedrine grow wild throughout Kyrgyzstan.

Corruption.  Recognition of corruption within the government prompted the creation of a compartmentalized anti-corruption unit within the State Security Agency (KNB) to investigate corruption in all law enforcement agencies.  The new unit has arrested some junior officials.

Agreements and Treaties.  Kyrgyzstan has acceded to the 1988 UN Convention, the 1961 Single Convention on Narcotic Drugs and the 1971 UN Convention on Psychotropic Substances.  The GOK is also a party to the agreement among the police forces of the NIS which calls for the coordination of operational drug control activities.  There is also an agreement with Kazakhstan to cooperate on drug enforcement.  In 1993 Kyrgyzstan signed a bilateral agreement on drug enforcement with Germany.


TAJIKISTAN

II.Status of country

In 1994 Tajikistan emerged as key smuggling route for opium and hashish from Southwest Asia to Russia and other NIS states.  Its loosely controlled borders, particularly in Gorno-Badakhshan, the continuing conflict in Afghanistan, and its deteriorating economy have fueled drug operations in Tajikistan.  GOT officials estimate that 80 percent of the drugs smuggled through Tajikistan follow the Khorogosh road in Gorno Badakhshan to the city of Osh in Kyrgyzstan.  They also estimate that the volume of drugs on this route has doubled in 1994.  A lesser used route is from Dushanbe via rail and air to Russia and surrounding NIS states.  While the vast majority of drugs transiting Tajikistan are of Afghan origin, officials note that Tajik origin opium has been found as far east as Vladivostok and as far west as Austria.  
 
A drug organization from Gorno Badakhshan, with regional drug warlords, is becoming increasingly wealthy and influential in the region.  Multiple sources allege ties between these criminal bands and elements of the Russian border guards, the Tajik opposition, the GOT, and Afghan mujahidin.

Opium poppy cultivation, according to Ministry of Interior (MVD) and Justice Ministry officials, is proliferating in Tajikistan, primarily in the Zarafshan Valley.  Narcotics drug abuse inside Tajikistan is still a small problem.  Tajikistan is not a drug money laundering center nor producer/exporter of precursor chemicals.

III.Country Action Against Drugs in 1994

Recognition of the escalating drug problems in the region prompted some limited high-level attention to narcotics for the first time in 1994.  As a result the GOT plans to introduce antidrug legislation in the new Parliament in 1995.  According to ministry officials, provisions for Tajikistan to adhere to the major international drug control treaties and conventions are included in the new legislation.

According to GOT officials, there was an increase in 1994 in the number of arrests for drug-related crimes, the number of hectares of opium poppy destroyed, and the number of special squads fielded to detect drug cultivation.  However, these same officials believe that the increase in arrests and eradication did not keep pace with the increase in drug smuggling and cultivation.  Complete statistics on drug seizures and eradication in 1994 are not available.

Cultivation/Production.  The cultivation of opium poppy is illegal in Tajikistan.  According to MVD officials, 80 percent of the opium poppies grown in Tajikistan are grown in the Penjikent district in the Zarafshan Valley.  A multi-agency task force destroyed 500 hectares of opium poppy there in 1994 compared with 370 hectares destroyed in 1993.  The total number of hectares under cultivation is unknown.  In the first half of 1994, 51 cannabis plantations and 32 hectares of wild growing cannabis were destroyed, roughly equivalent to 1993 half-year accomplishments.

Corruption.  There are reports of drug-related official corruption at senior levels of the GOT, as well as among members of the NIS peacekeeping forces and Russian border guards stationed in Tajikistan.  These reports remain unconfirmed except for one case in which ten Russian soldiers were prosecuted and convicted of drug smuggling by the Russian military courts in Tajikistan during 1994.  The GOT does not encourage or facilitate the illicit production or distribution of drugs or other controlled substances, or the laundering of drug money.

Agreements and Treaties.  Legislation anticipated in 1995 should replace the USSR's penal code of 1961, and provide for Tajikistan's accession to international drug control conventions and treaties, including the 1988 UN Convention.

Tajikistan has no bilateral extradition treaties, although several are under negotiation with other NIS states.  Tajikistan is a party to the agreement among the police forces of the Commonwealth of Independent States calling for the coordination of operational drug control operations.  Tajikistan has no bilateral nor unilateral narcotics agreements with the US or other countries.


TURKMENISTAN

II.Status of Country

Turkmenistan is becoming more attractive to drug traffickers as it rapidly expands its international transportation links.  Direct air routes now link Ashgabat with Teheran, Istanbul and Karachi.  A rail line to Iran is under construction.  Truck transport to Europe has become common in the post-Soviet era.  New border crossing posts have been opened on the Iranian and Afghanistan frontiers.  There are reports that the old "Silk Road" through Uzbekistan, across Turkmenistan, the Caspian Sea and Transcaucasia to Turkey is being resurrected.  All of these changes create new opportunities for the smuggling of drugs.  Record opium and heroin seizures already mark Turkmenistan as a key transit route for illicit drugs destined for Russia and Turkey.  
 
Turkmenistan appears to have a sizable domestic opium addict population.  Opium was traditionally 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 prevalent.

Drug sales and distribution are 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, Uzbekistan, Tajikistan 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.

There is no coordinated strategy on health care for drug abusers, and there is no specific program for treating addicts.  However, government clinics in Ashgabat and the five regions of the country do have assigned specialists in drug treatment.  The Narcotics Unit of the Medical Center in Ashgabat presently works with the World Health Organization project on demand reduction, targeting secondary school students with educational programs, and medical officials with drug-related seminars.

III.Country Action Against Drugs in 1994

Turkmenistan still relies on the outdated USSR Penal Code of 1961.  In 1994 a group of local legal experts began work on a new draft of the Penal Code and Penal Procedure Code.  The Government of Turkmenistan (GOT) plans to submit the drafts to the new Parliament which will be seated sometime in 1995.  In 1994 the GOT also adopted the Law on Money Laundering, and added a clause to its Criminal Code which stipulated that large-scale drug-trafficking was a capital crime.  

In 1994, 657 kilos of raw opium, over a ton of hashish and 2 kilos of heroin were seized in operations by the Committee for National Security (KNB) and Turkmen Customs.  This compares with 261 kilos of opium and 10 kilos of heroin seized in 1993.  The majority of seizures occurred on the border with Afghanistan.
 
Cultivation/Production.  While climatic conditions are favorable for the cultivation of opium poppy and cannabis, illicit cultivation is reported to be undertaken almost exclusively for individual consumption.  There is no evidence of large plantations.  A growing number of abusers in urban areas have taken to injecting rather than smoking or swallowing opiates.  There are no statistics on cultivation or country wide drug abuse for 1994.

Corruption.  The USG has no reports of official drug-related corruption in Turkmenistan in 1994.

Agreements and Treaties.  Turkmenistan has not taken independent action to accede to any of the UN Conventions.  However, a UNDCP Legal Assistance Mission was in Turkmenistan in June 1994 to consult with the legal experts who are drafting the new Penal Codes and to advise them on the requirements of the international drug control conventions.  Turkmenistan is a party to the agreement among the police forces of the Newly Independent States.


UZBEKISTAN

II.Status of Country

Uzbekistan has emerged as an attractive transit center for drug operations in Central Asia since it lies along narcotrafficking routes involving Afghanistan, Turkmenistan, Tajikistan and Kyrgyzstan.  Expanded smuggling activity and opium cultivation underscore Uzbekistan's attractiveness, as evidenced by a record seizure of over 14 metric tons of Afghan hashish destined for The Netherlands in 1993.  Uzbekistan is already emerging as a key conduit for moving drugs from Central and Southwest Asia to Russia and the West.  The source of most narcotics is from Afghanistan and Tajikistan.  The recent discovery of new heroin processing laboratories in the Badakhshan province of Nothern Afghanistan indicate that the future flow of illicit opium poppy into Central Asia will increase.

Seizures reveal drug smuggling operations in Uzbekistan are primarily run by Uzbeks and Russians.  Some large scale traffickers with organized crime connections operate from bases outside the country.  GOU authorities indicate that Georgian, Azeri, Turkish and other nationalities are involved.

The Ministry of Health estimates that there are 44,000 drug users in Uzbekistan.  Unofficial estimates go as high as 200,000.  The primary substance  of abuse is cannabis, but a growing practice of intravenous injection of primitive poppy straw extract is of concern to public health officials.  Demand reduction is limited to the compulsory treatment of addicts, 14,000 of whom were registered in 1994.

III.Country Action Against Drugs in 1994

National drug control objectives and realistically designed strategies are formulated in the draft National Program on Drug Control for 1994-1996, with responsibility for their implementation explicitly linked to specific government agencies.  The program sets objectives for prevention of drug abuse, treatment and social rehabilitation of drug addicts, eradicating illicit  cultivation of narcotic crops, suppression of illicit drug trafficking, strengthening and streamlining of licit control measures and regulations, international cooperation, and strengthening of the legal and institutional framework of drug control.  The GOU announced in April 1994 the creation of the State Inter-Ministerial Coordinating Committee on Drug Control, headed by the First Deputy Prime Minister.  The newly elected parliament will consider a draft crimminal code in spring 1995 which contains new severe punishments for selling, buying or smuggling drugs.  The new bill also contains provisions dealing with money laundering.

While GOU domestic programs suffer from inadequate resources, the government does maintain six substance abuse clinics throughout the country.  These tend to focus primarily on alcohol problems.

Cultivation/Production.  Conditions are favorable for the growth of opium poppy in Uzbekistan and cannabis is a common wild-growing road-side crop.  Opium poppy and cannabis cultivation is prohibited, but an exemption is provided for men over 60 and women over 55 years of age.  MVD officials indicate that opium poppy continues to be grown in Samarkand and other mountainous areas of the region, primarily along the border with Tajikistan.  The GOU estimated 400 hectares of illicit opium poppy under cultivation in 1994, mostly in small plots.

Corruption.  The USG has no reports of high-level government officials involved in drug-related corruption in Uzbekistan in 1994.  The MVD has elaborated a program for combating crime for 1994/5 in which special attention is focused on the fight against corruption.  In November 1994 the Ministry of Justice announced that more than 1,000 officials had been charged with accepting bribes, embezzlement, speculating against the new national currency and abusing official powers.  

Agreements and Treaties.  The GOU has acknowledged that formal accession to the UN Conventions is a priority.  Parliament will consider ratification in spring 1995.  A new draft Penal Code which takes into account the provisions of the international drug control conventions has been submitted for approval to the Parliament.  For now, the GOU relies on the USSR's Penal Code of 1961.  Uzbekistan is a party to the agreement among the police forces of the Newly Independent States calling for coordination of  drug control operations.  In 1993, the GOU National Security Service signed an agreement with its counterpart in Kazakhstan for cooperation in the field of drug control.  Uzbekistan's September 1994 membership in INTERPOL has increased its ability to combat organized crime.

IV.US Policy Initiatives and Programs

Policy Initiatives and Bilateral Cooperation.  In 1994 the USG continued a counternarcotics dialogue with each of the five Central Asian States to urge them to give priority to the drug issue.  Efforts are focused on identifying existing problems, possible areas for assistance and the need to accede to the UN drug Conventions.  INL sponsored a variety of DEA and US Customs Service courses and visits in the five Central Asian States, including regional workshops in Almaty.  In addition, funding was provided for officials to attend NIS regional workshops and seminars sponsored by INL in Moscow and Kiev and for three senior officials from Tajikistan to attend a DEA/European Union seminar for NIS officials.
 
Moreover, the USG has worked with the UNDCP to encourage increased drug control support for Central Asia.  In 1993 the UNDCP established a regional office in Tashkent, Uzbekistan which also covers Kazakhstan, Kyrgyzstan and Turkmenistan.  These four countries were visited by the UNDCP Executive Director in 1994.  While the UNDCP sponsors some training for Tajikistan law enforcement officials, the armed conflict there has inhibited greater involvement.

The Road Ahead.  Over the next year the USG will continue to encourage the Central Asian States 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 stress development of licit drug legislation and controls and demand reduction programs.  The USG will urge the NIS to increase opportunities for bilateral and international cooperation.  The bulk of USG assistance to Central Asia in 1995 will be channeled through contributions earmarked for the UN.  In addition, INL will continue to sponsor bilateral and regional training at the current modest level.  US Customs has scheduled training in this region for 1995, including a Regional Train-the-Trainer workshop.
 

TRANSCAUCASIA

ARMENIA, AZERBAIJAN, GEORGIA 

I.  Summary

The three countries of Transcaucasia are located on an increasingly active transhipment route for illicit narcotics, particularly opium, originating in Afghanistan, Central Asia and Iran and destined for the European market and, to a lesser degree, for Russia.

While the governments of Azerbaijan, Armenia and Georgia have evinced interest in taking measures to counter narcotic transhipment through their territories, they made no significant progress toward this end in 1994.  Only Georgia has mounted a law enforcement interdiction campaign, but such efforts have been military type operations and have had little, if any, effect on the transhipment problem.  The three countries are deficient in resources needed to combat organized narcotraffickers, and known corruption reaching high levels of government in Azerbaijan and Georgia is an additional deterrent to success.  Moreover, intense ethnic rivalries continue to prevent the emergence of effective regional drug cooperation.

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 noted in Central Asia and Russia.

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 the dissolution of the USSR, 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, including the 1972 Protocol.  Azerbaijan did the same, but for the 1988 UN Convention only.  Georgia has not yet taken steps to accede to any of the UN Conventions.


ARMENIA

II.  Status of Country

The Ministry of the Interior (MVD) reports that Armenia is becoming a significant transit point for narcotics traffic, principally opium, between Asia and Europe.  Traffic flows from Asia through Iran, Armenia, then onward to Georgian ports or to Russia.  The Armenian-Iranian border is particularly vulnerable to drug smuggling.  According to the MVD, Iranians and Russians as well as Armenians are involved in the transhipment of narcotics through Armenia.  
 
Narcotics production is minimal in Armenia.  Hemp and opium poppy grow wild in the countryside and without doubt some of the hemp is processed for local illicit drug use.  However, the MVD  has no evidence that the wild poppy is being exploited for drugs.  

Armenia is not a large market for narcotics.  MVD reports about 1000 registered drug addicts in Armenia.  Estimates of actual users, primarily of hashish and opium, range from 5 to 20 thousand. 

III.  Country Action Against Drugs in 1994

The National Inter-Ministerial Committee on the Fight Against Drug Trafficking and Drug Abuse was established in February 1994 to lend support to the government's counternarcotics effort.  Already it has helped to draft and enact a mandatory sentencing law for narcotics trafficking.  

The GOA's counternarcotic trafficking efforts have focused on developing cooperative relationships with French and Iranian police to interdict traffic and on arresting major players in the "narco-business".  A Yervan newspaper recently reported that the Armenian State Directorate for National Security and its Russian counterpart conducted a joint counternarcotics operation in Moscow and Yervan resulting in multiple arrests and confiscation of a large amount of heroin and firearms.  In December, the GOA suspended the opposition Dashak Party for alleged involvement in criminal activity, including drug trafficking.  The suspension of an entire political party, however, has raised concerns that the GOA exceeded its  authority.

In 1994 the GOA began legal proceedings in 353 illicit drug cases, resulting so far in the conviction and sentencing of 55 drug dealers.  In the same period the MVD has confiscated considerable quantities of poppy, hashish, marijuana and opium.  

Corruption.  The USG is unaware of any reports of official narcotics-related corruption in Armenia in 1994.


AZERBAIJAN

II.  Status of Country

A significant heroin transport network runs from Iran through Azerbaijan and thence to Russia and to the Baltic States.  Transhipment routes also originate in Afghanistan and Central Asia.  The ferry route between Azerbaijan and Turkmenistan is probably a major "bridge" for narcotic traffic from Afghanistan through Central Asia.  The Jafar Rahani group, an Istanbul-based trafficking ring, is believed to have links in Azerbaijan.  Limited quantities of the drug trimetyl pentonyl are produced in Azerbaijan and reportedly shipped to the Baltic states.  Locally grown hashish is exported to Georgia.  Large areas in the Caucaus foothills are suitable for the cultivation and clandestine production of ephedrine and there is evidence of this in the confiscation of ephedrine tablets.

III.   Country Action Against Drugs in 1994

Azerbaijan has not developed any new domestic policy initiatives to combat commerce in illicit drugs since the setting up of an inter-agency permanent committee on counternarcotics in 1992-93.  The Ministry of the Interior has proposed revamping the criminal code to deal more effectively with drug-related offenses, but the Parliament has not yet acted on its proposals.

The Government of Azerbaijan periodically announces small seizures of illicit narcotics.  However, no large-scale seizures have been made and there has been no discernible impact on transhipment volume in 1994.  Seizures include small quantities of marijuana, cocaine, hashish, raw opium, refined opium, heroin and ephedrine tablets.  In the same period, authorities destroyed 18 hectares of poppy plants, an 88 percent increase from the previous year.  The Azeri authorities initiated 88 drug-related criminal prosecutions through November 1994.  Fifty-five ended in conviction with sentences averaging 3-5 years.

Corruption.  The Ministry of the Interior and  the Prosecutor's Office have not reported any narcotic-related corruption cases in 1994.  This fact in itself indicates that high-level attention is yet to be devoted to this problem.


GEORGIA

II.   Status of Country

Georgia is one of the major routes for narcotics moving from Central Asia and the Golden Crescent to the West.  There is virtually no control over vehicle, aircraft, and ship traffic entering or leaving Georgia. According to Georgian authorities, border and customs officials are susceptible to bribes; a relatively small sum will persuade officers to turn a blind eye to narcotics trafficking.  Although much of the information of this region is anecdotal, multi-ton seizures of opium in Turkey over the past several years indicate Georgia continues to be a key transhipment point.  It also appears that drug interests are increasing efforts to target Georgia for smuggling heroin.

Indigenous production of cannabis and poppy appears to be on the rise, although there are no reliable estimates on cultivation at this time.  The Ministry of the Interior (MVD) recently seized 2000 liters of hydrochloric acid, intended for use in illicit drug refining.

Despite the poor economic conditions, banking in Georgia seems to be a thriving business.  GOG officials believe that some of these banks have been established solely to launder illegal profits from narcotrafficking.

III.  Country Action Against Drugs in 1994

In the Fall of 1994, the MVD redrafted legislation applicable to drug crimes, proposing stiffer penalties and adherence to international narcotics conventions and agreements.  The legislation is now under parliamentary review.  

The Georgian MVD formed a Counternarcotics Bureau consisting of approximately 350 officers to combat the growing narcotic problem.  This Bureau conducted several large-scale antinarcotics operations in 1994, with occasional assistance from the military or the security service.  Raids were conducted throughout the country and netted significant amounts of illegal drugs, weapons and stolen goods.  Of the 1038 criminal cases brought to trial in Georgia in 1994, 177 were drug-related, the majority of which involved drug distribution.  The conviction rate for these drug cases was eighty-five percent and most received sentences of 3-5 years in prison. 

The GOG began interdicting illicit drugs intended for  domestic consumption in 1994.  However, by their own estimates, GOG officials believe they are only interdicting 1-2 percent of the illegal drugs transiting through Georgia.

Corruption.   The USG has no indication of corruption in the recently established MVD Counternarcotics Bureau.  However, there are rumors that the GOG is beginning to take steps to clean out the Customs Service, a notoriously corrupt organization.

IV.   US Policy Initiatives and Programs

The USG continues to maintain a limited dialogue with the three countries in the Transcaucasus region and to exchange information on counternarcotic matters.  All three countries are receptive to exchanges and training opportunities and the US encourages this with in-country visits and analysis of needs.  Aid, including US funded counternarcotics and law enforcement training, for Azerbaijan is limited by Freedom Support Act Section 907.

In 1994 the three Transcaucasus countries participated in  regional counternarcotic training programs held in Kiev, Moscow and Salzburg.  Additional training opportunities will be provided in 1995 (subject to limitations of Section 907 of the Freedom Support Act), including a week-long counternarcotic law enforcement training program in Tbilisi for 50 Georgian officials.  The USG is promoting anti-drug assistance from other Western donors and from the UNDCP for the Transcaucus region.

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 capabilities to improve intra-government cooperation and ensure efficient legal prosecution of narcotics-related crimes.  Specific attention will be given to urging the implementation of the provisions of the 1961, 1971 and 1988 UN Conventions.


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