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U.S. Department of State - Great Seal

U.S. Department of State

Diplomacy in Action

Andean Counterdrug Initiative


International Narcotics and Law Enforcement: FY 2008 Program and Budget Guide
Bureau of International Narcotics and Law Enforcement Affairs
September 2007
Report
September 18, 2007

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Bolivia

Budget Summary ($000)

   

FY 2006 Actual

FY 2007 Estimate

FY 2008 Request

ACI

79,200

66,000

30,000*

INCLE

---

---

600

Total

79,200

66,000

30,600


*FY 2008 is the first year that funding for Alternative Development (AD) and Administration of Justice (AOJ) is not included in the ACI Account. AD and AOJ funding will fall under the ESF Account from FY 2008 onward, which for FY08 totals $17 million.

Program Objectives and Performance Indicators

Counternarcotics assistance to the Government of Bolivia (GOB) in FY 2008 will focus on continuing to fortify law enforcement cooperation and strengthen law enforcement capability in areas such as interdiction, building local support for coca control and eradication, and highlighting the damage to Bolivian society and Bolivia's neighbors caused by increased coca cultivation, cocaine, and human trafficking.

Increase the GOB's institutional capability to interdict narcotics and precursors produced within or transiting through Bolivia, and its ability to control the marketing of legal coca and to eradicate illicit coca. USG assistance in these areas will allow the Bolivian Special Counternarcotics Police (FELCN) to interdict at least 16 percent of Bolivia's potential cocaine production and reduce the amount of hectares of coca in the country as established by Law 1008, beginning with 5,000 until reaching the goal of 8,000 hectares annually.

Strengthen the ministerial National Drug Prevention Coordinating Council (CONALTID) that coordinates the GOB's anti-drug strategy, develop the coordination and policy development capacity of the Vice Ministries of Social Defense and Integrated Development and Coca; help the GOB develop and implement its social communication policies related to counternarcotics activities; and form a national demand reduction network within civil society. This will reduce actual drug use in Bolivia and rehabilitate those afflicted by drug addiction.

Increase the GOB's institutional capability to identify, prevent, and prosecute cases of trafficking in persons while increasing public awareness of the threat of trafficking to vulnerable populations in Bolivia.

Transformational Diplomacy

Bolivia's Counternarcotics Program advances the Secretary's Transformational Diplomacy Peace and Security objective by funding counternarcotics projects designed to reduce the flow of illegal narcotics and precursors in Bolivia, encourage coca control, and support initiatives to explain the dangers of excess coca production, drug production, and consumption to Bolivian society. Bolivia's porous borders, weak institutions, history of political exclusion, endemic poverty and a succession of short-lived governments has created fertile conditions for regional terrorist organizations, narcotics traffickers, diverse criminal interests and trafficking in persons. While all three counternarcotics pillars (eradication, interdiction and alternative development) are critical to combating cocaine production and trafficking, the GOB's permissive coca cultivation policy undercuts one of the three pillars. Therefore, funding is primarily directed towards interdiction and pre-cursor chemical control (alternative development will be funded through ESF in FY 2008, rather than ACI). We will build local support for coca control and eradication, as well as improve the licit non-coca economy in coca growing areas.

Program Justification

Bolivia remains the poorest nation in South America and the third largest producer of illicit coca and cocaine, with serious social and economic problems and regional fragmentation. The proposed policies of President Evo Morales, elected in December 2005, raises concern over the expansion of coca cultivation in Bolivia and the extent to which the GOB intends to cooperate bilaterally on counternarcotics. However, disengagement and the withdrawal of USG resources would result in the rapid collapse of much of what has been achieved over more than two decades of USG financial and policy support.

The principal challenges facing Bolivia are the control of coca cultivation especially near and in the Yungas, the need to develop new laws and regulations to control precursor chemicals, and pass new laws to modify the current Code of Criminal Procedures, which handicaps drug case prosecutions. Bolivia has produced coca leaf for traditional uses for centuries, and current Bolivian law permits up to 12,000 hectares of legal coca cultivation (mostly in the Yungas) to supply this licit market. The GOB has proposed to increase this amount to 20,000 hectares, which will require modification of Law 1008 and would be in violation of international conventions. The GOB explains that the excess coca leaf not used for internal consumption will be industrialized and exported to an international market that has yet to be identified. The GOB met its coca eradication goal of 5,000 hectares by mid December 2006, however, 2006 represented the lowest level of eradication in more than ten years. From 2001 to 2005, coca cultivation increased from 19,900 to 26,500 hectares, and as a result, Bolivia's estimated potential cocaine production has increased, from 100 metric tons in 2001 to 115 metric tons in 2005 (according to recently revised USG statistics). USG cultivation estimates show an increase in most parts of the country in 2006. Significant quantities of cocaine from Peru and Colombia traverse Bolivia to enter Brazil, Paraguay and Argentina. An increasing proportion of the cocaine both transiting and produced within Bolivia is destined for Europe, Argentina, Brazil, Chile, Paraguay and Mexico (in the case of the last, probably for eventual sale in the United States).

Program Accomplishments

The GOB eradicated just over 5,000 hectares of coca mostly in the Chapare in 2006 (only 46 hectares in the Yungas). The FELCN's interdiction results for 2006 improved over those of 2005. Through 9,132 operations, the FELCN seized 1,344 metric tons of coca leaf, 14 metric tons of cocaine base and cocaine hydrochloride (HCl), 125 metric tons of marijuana, 1,352,152 liters of liquid precursors and 323 metric tons of solid precursor chemicals. The FELCN also destroyed 4,070 cocaine base labs and detained 4,503 suspects. Alternative Development (AD) programs, which notably raised the income levels of farmers in the Chapare, shifted to a more integrated approach, with an emphasis on sustainability and increased participation by communities in developing, implementing and monitoring programs. Average licit gross farm gate family income in the Cochabamba area rose, reaching $2,931 in 2006 (compared with $2,667 in 2005). Estimated net licit family income in the Chapare area increased from $2,297 in 2005 to $2,739 in 2006, while in the Yungas, it decreased from $1,711 to $1,471. In both areas average licit incomes are substantially above the national average. The licit economies in coca-growing regions expanded and consolidated in 2006, providing former coca growers with opportunities to live within the rule of law and make a decent living. In the Chapare, the value of private investment increased, reaching $88.3 million. Chapare and Yungas high-value licit crop exports-such as bananas, pineapple, coffee, cocoa, and palm heart-increased from $36.4 million in 2005 to $40.6 million in 2006. Over 900 kilometers of maintained and improved roads helped farmers reach markets while providing collateral social benefits to thousands of families. In 2006, the GOB also implemented two projects with the support of the Narcotics Affairs Section (NAS): a Drug Demand Reduction Decentralization Project in 20 municipalities and a project on accreditation of rehabilitation centers.

FY 2008 Program

Interdiction

The Special Counternarcotics Police Force (FELCN) is a Bolivian National Police (BNP) entity (comprising 1,106 NAS-supported personnel) which includes a command staff and UMOPAR (rural patrol units), plus various specialized police groups: K-9 (drug detection dogs), and the FOE (Special Operations Force). The FOE comprises some 463 personnel, incorporated from the former intelligence and special operations group, the chemical control group and the money laundering investigations group under one streamlined command; it also includes SIU (a highly specialized intelligence unit, managed by DEA), GRIRMO (mobile roadblocks unit) and GICC (containers investigation group). The FOE in all its forms provides coordination for counternarcotics operations and motivates action on time-sensitive intelligence. The Garras del Valor School is an academy for training new counternarcotics personnel in such courses as basic criminal investigation procedures, the basics of the Bolivian legal system, human rights, and jungle survival skills. The Garras School (16 personnel) also serves as a regional training center for counternarcotics police from other Latin American countries, in order to promote regional integration. The interdiction project also includes support for 71 counternarcotics prosecutors and legal assistants who lead the investigations undertaken by the FELCN elements.

In FY 2008, NAS will continue to support the 1,387 professionals who work in interdiction, including paying for their food (MREs), field equipment and maintenance, medical care, and office rental and costs. Funding will also go towards incentives, stipends, travel and per diem, insuring that all interdiction forces have the required communications capabilities and transportation to be effective.

Eradication

The Joint Eradication Task Force (JTF) consist of approximately 2,000 military, police, and civilian personnel with separate units conducting eradication (including the provision of force protection) in the two zones. The Directorate General for Integral Development of Coca Producing Regions (DIGPROCOCA) supervises the destruction of coca crops and verifies the eradication by helping to measure the fields before and after eradication is to take place. The Ecological Police will provide perimeter security for the JTF and conduct primary reconnaissance for locating coca fields.

Budget allotments reflect our concern over limited cooperation from the GOB on eradication. Funding is primarily directed towards interdiction and alternative development, with eradication financing rationalized to support limited operations and to "keep the pump primed" for increased operations. FY 2008 assistance will continue to feed approximately 1,600 eradicators (including police) and equip 4,500 people (three rotations per year) with uniforms and medical/hygienic supplies. NAS funding will also pay for full medical care, vehicle support, tents, cooking equipment, and aviation support. NAS will also continue to support and work closely with DIGPROCOCA.

Operational/Logistical Support

The entire range of USG counternarcotics projects rely upon a logistical infrastructure involving airplanes, boats, various land vehicles, helicopters, and a decentralized warehousing and supply system. This extensive support enables eradication and interdiction to operate effectively in the often primitive conditions that characterize Bolivia. FY 2008 assistance will provide the GOB with technical advice, equipment, and training for the several components under the Operational/Logistical Project, the Green Devil Task Force (GDTF), the Blue Devil Task Force (BDTF), and Infrastructure (INFRA).

The Green Devils Task Force (GDTF), a unit of 125 Bolivian Army personnel with a fleet of approximately 119 light, medium, and heavy-lift utility and other types of vehicles provided by the USG, provides ground transportation in support to interdiction and eradication operations. In FY 2008, support will provide for the continued repair of the aging fleet of vehicles, including the provision of motors, spares, and fuel, as well support for its personnel to include travel costs and economic incentives.

The Blue Devils Task Force (BDTF) is a special unit within the Bolivian Navy that supports interdiction across the country's extensive river system and collects actionable intelligence. In FY 2008, the project will continue the maintenance and replacement of aged equipment, including 25 boat motors and 30 Zodiacs, along with 30,000 spare parts and support for 170 members, six land bases, five mobile bases (each with a large supply ship and various patrol craft) to control natural river chokepoints. Technical and material assistance in FY 2008 will allow for the gradual reduction of the scale of BDTF.

The Field Support Program (INFRA) supports the operating expenses for NAS facilities located outside of La Paz (including field offices, procurement, accounting, vehicle maintenance facilities and warehouses in located Santa Cruz, Cochabamba, Trinidad, Chimore, and Villa Tunari). This infrastructure provides a common support platform for NAS and DEA-supported activities throughout the country. Assistance in FY 2008 will continue to support administrative and operating expenses not attributable to individual projects, such as personal services contract (PSC) and Foreign Service National (FSN) personnel salaries/benefits, travel, transportation expenses, real property rentals, office supplies, phones/utilities, and other contracted services needed in support of NAS-supported projects within their jurisdictions.

Aviation

The Aviation Support Project is designed to increase the GOB's institutional capability to provide aviation logistical support to its eradication and interdiction activities, given the state of infrastructure throughout the respective zones of operation. FY 2008 funding will provide the GOB with technical advice, equipment, and training in support of the Red Devils Task Force (RDTF) and Black Devils Task Force (BlkDTF).

Red Devils Task Force (RDTF): The RDTF provides general aviation support for the eradication and interdiction programs. American citizen contractors assist the RDTF with maintenance, quality control, logistics and training, with day-to-day contract oversight. In FY 2008, the project will provide support GOB forced eradication in the National Parks, and continued limited eradication operations in the Yungas and Chapare. Assistance will go towards operational and maintenance costs for the remaining ten UH-1H helicopters. The project will also support maintenance for two light fixed-wing aircraft; a qualified force of helicopter pilots, fixed-wing pilots, crew chiefs and support technicians, and support qualification of maintenance technicians as flying crew chiefs.

Black Devils Task Force (BlkDTF): FY 2008 funds will allow the project to continue to support the GOB's interdiction and eradication activities even more effectively, with the incorporation of a refurbished King Air aircraft into the project's assets. The project's other assets are three C130B aircraft, which transport project personnel and supplies throughout Bolivia and move RDTF and BlkDTF spare aircraft parts, supplies and other project equipment to and from continental U.S. Support also covers all maintenance, repairs, spare parts, and required major inspections at U.S. facilities, as well as in-country costs for fuel and per diem, uniforms, equipment and economic incentives for 81 personnel (19 pilots, co-pilots and navigators, and 62 enlisted personnel who provide maintenance support). The goal for FY 2008 is to maintain a trained, reliable medium-lift-capable aviation unit that provides aviation support to NAS projects, while maintaining an operational rate of 90 percent of requested missions; support an American PSC who oversees BlkDTF activities, as well as four technicians who supervise maintenance; and an FSN warehouseman to maintain control of the multi-million dollar spare parts inventory.

Policy Development/Demand Reduction

The ministerial-level National Drug Control Council (CONALTID) is the GOB's central policy making body for counternarcotics. The Vice Ministries of Social Defense and Coca and Integrated Development are the most significant implementers of these polices. This project supports the operations of these entities, by providing technical advice, equipment, training, consultancies and other support as appropriate.

This project also supports demand reduction activities, focusing principally on enabling civil society - through training and other interventions - to provide basic rehabilitation, diagnostic center, and other services the public sector remains incapable of delivering. The project also supports the DARE program, which will seek to reach 40,000 middle school students in a broader base of cities. Financial assistance in FY 2008 is also destined for technical schools in coca growing regions, PRIDE (national youth group), and innovative departmental demand reduction programs.

This project also has a public affairs component that promotes USG interests in drug issues, provides accurate information on counternarcotics questions and policies to the media, enhances the professionalism of the media (especially on drug-related themes) and helps generate information useful to the USG. FY 2008 assistance will go towards national contests for preventive theater, support to journalists, workshops, and a toll-free telephone hotline.

Program Development and Support (PD&S)

Funds will be used for the salaries, benefits, allowances and travel of direct hire and contract U.S. and foreign national personnel, residential leasing, International Cooperative Administrative Support Services (ICASS) costs and other administrative and operating expenses for program planning, design, implementation, monitoring, and evaluation.

Trafficking in Persons (TIP)

INCLE funds will be used to assist the GOB in strengthening law enforcement and the rule of law to interrupt TIP national and transnational crime networks. Project funds will be allocated to prevention programs, including television and radio spots, and a telephone line; training for prosecutors, police, judges, and government and school officials; equipment; infrastructure such as shelters for victims and more police TIP units; and legal services support including tracking cases as they move through the Bolivian justice system.

Bolivia
INL Budget
(000)

FY 2006 FY 06
Supp
FY 2007 FY 07
Supp
FY 2008
Interdiction
FELCN, UMOPAR, GIOE, 12,992 - 14,646 - 10,648
GISUQ, GIAEF, K9,
Garras School, Prosecutors
Operational/Logistical Support (BDTF, 3,578 - 2,872 - 3,533
GDTF, Field Support)
Aviation (RDTF, BlkDTF, Helo 3,118 - 3,324 - 3,957
Upgrade (if applicable))
Sub Total 19,688 20,842 18,138
Eradication
JTF, Eco Police, DIRECO, DIGECO 10,194 - 4,200 - 4,418
Operational/Logistical Support (BDTF, 3,578 - 2,128 - 1,467
GDTF, Field Support)
Aviation (RDTF, BlkDTF, Helo 3,119 - 2,216 - 1,643
Upgrade (if applicable))
Sub Total 16,891 8,544 7,528
Demand Reduction 847 - 600 - 534
VM/SD, Demand Reduction
Border and Transportation Control 34 - - - -
Secure Borders
Money Laundering 767 - 214 - -
LEDP, FIU Development
Law Enforcement Restructuring 593 - 1,000 - -
OPR, LEDP
Sub Total 2,241 - 1,814 - 534
Program Development and Support
U.S. Personnel 795 - 808 - 808
Non-U.S. Personnel 1,293 - 1,287 - 1,304
ICASS Costs 788 - 800 - 800
Program Support 874 - 905 - 888
Sub Total 3,750 - 3,800 - 3,800
Administration of Justice * 2,970 - 3,000 - -
Alternative Development * 33,660 - 28,000 - -
Trafficking in Persons - - - - 600
ACI Total 79,200 - 66,000 - 30,000
INCLE Total - - - - 600
Bolivia Total 79,200 - 66,000 - 30,600
*In FY06-FY07, funds are transferred to USAID who manages these programs.
In FY 2008, AOJ and AD funding comes out of the ESF Account.
The ESF Account in FY 2008 is $17M.

Brazil

Budget Summary ($000)

FY 2006 Actual

FY 2007 Estimate

FY 2008 Request

5,940

4,000

1,000

Program Objectives and Performance Indicators

Assistance to the Government of Brazil (GOB) will continue to build and strengthen Brazil's interagency law enforcement and drug interdiction border control operations. Support will also enhance federal, state, civil, and military law enforcement capabilities by providing operational support, training, and equipment to conduct more effective investigations and interdiction operations against international narcotics organizations. Specifically, assistance will:

Enable the GOB to dismantle and/or disrupt high echelon drug trafficking organizations that operate in and/or through Brazil and have criminal ties to the United States;

Increase the number of bi-lateral and multi-lateral drug investigations that Brazil participates in, leading to an increase in drugs and assets seized by the Brazilian Federal Police;

Enable Brazilian counternarcotics operations PEBRA, BRAVO, and COBRA to be self-sustaining;

Provide training to enhance GOB port and airport security which will be reflected by an increase in the number of arrests and drug seizures;

Improve the ability of federal and state law enforcement authorities to combat gang activities, such as drug- and weapons trafficking, and prison violence. This will be reflected in a five percent increase in the number of arrests of gang members.

Transformational Diplomacy

The counternarcotics program in Brazil advances the Secretary's Transformational Diplomacy Peace and Security objective by strengthening Brazil's ability to combat narco-trafficking and gang violence, and by promoting demand reduction. In pursuit of this goal, INL assistance to Brazil will focus on improving the security of Brazil's borders with Colombia, Peru, Bolivia and Paraguay by strengthening interdiction operations along these porous borders. Assistance will also directly target state police forces and the Public Security Secretariat (SENASP) to combat the increasingly violent gang activity in Rio de Janeiro, Sao Paulo, and other states.

Program Justification

Brazil is a transit country for cocaine base moving from other Andean cultivation areas to processing laboratories in Colombia. Although Brazil is not a significant drug-producing country, it is the only country that borders all three coca-producing countries in the Andes - Peru, Bolivia, and Colombia. The sparsely populated Amazon region comprises more than one half of the country, which has long and porous borders. This makes Brazil a conduit for cocaine from the source countries to North America, Europe, and Brazilian cities. Brazil cooperates with its neighbors in an attempt to control its remote and expansive border areas where illicit drugs are transported. Additionally, cocaine and marijuana are used among youths in the country's cities, particularly Sao Paulo and Rio de Janeiro, where powerful and heavily-armed organized drug gangs are involved in narcotics-related arms trafficking. By assisting Brazil to improve its law enforcement capabilities, the United States will diminish the flow of illicit drugs passing through Brazil to the United States, as well as have an impact on illegal arms shipments and money laundering in Brazil.

Program Accomplishments

In 2006, the Brazilian Federal Police seized 13.2 mt of cocaine and 144 kg of crack. Marijuana seizures totaled 161.1 mt in 2006. Brazilian Federal Police also seized 57 kg of heroin. The Tri-border area with Paraguay and Argentina is particularly porous, but in 2006 the Brazilian Federal Police (DPF) seized over 24 metric tons of marijuana and about 126 kg of cocaine in Foz do Iguaï¿œu, which had been smuggled from Paraguay. The DPF had a number of successes in 2006 against foreign narcotrafficking organizations operating within Brazilian territory; the most significant of which was the arrest of kingpin target Pablo Joaquin Rayo Montano in Sao Paulo. The GOB also broke up Mexican and Colombian groups involved in sending heroin to the United States, and is now targeting groups that sell prescription drugs illegally via the internet. The DPF is placing a higher priority on interdiction capabilities along the Bolivian border, where seizures of cocaine base increased.

In an effort to expand their collaborative efforts with neighboring countries, the Brazilian Federal Police played a major role in "Operation Seis Fronteras" to disrupt the illegal flow of precursor chemicals in the region. The GOB also supported "Operation Alliance" with Brazilian and Paraguayan counterdrug interdiction forces in the Paraguayan-Brazilian border area.

FY 2008 Program

Narcotics Law Enforcement

This project will contribute the additional resources and training needed to enhance BFP effectiveness in its counternarcotics efforts. Funding will support training against arms trafficking by various USG agencies. Additionally, INL funds will provide equipment, such as bullet-proof vests, communications equipments and GPS devices that will improve Brazilian law enforcement capabilities in remote areas.

Northern Brazil Law Enforcement

Funding will contribute to the GOB's various border operations to reinforce its borders with Colombia, Peru, Venezuela, and Bolivia. Specific assistance will provide training, equipment, and operational support.

State Security Law Enforcement

Funds from this project will assist SENASP and various state-level civil and military police forces by providing training and equipment for use in conducting investigations and interdiction operations against gangs and narcotics cartel leaders and their associates.

Program Development and Support (PD&S)

Funds will be used for the salaries, benefits, allowances and travel of direct hire and contract U.S. and foreign national personnel, residential leasing, International Cooperative Administrative Support Services (ICASS) costs and other administrative and operating expenses for program planning, design, implementation, monitoring, and evaluation.

Brazil
INL Budget
($000)

FY 2006 FY 2006
Supp
FY 2007 FY 2007
Supp
FY 2008
Interdiction
Federal Police Enforcement & Training 1,940 - 876 - 100
Northern Brazil Law Enforcement 2,000 - 943 - 100
State Security Law Enforcement 1,000 - 900 - 100
Sub-Total 4,940 - 2,719 - 300
Demand Control & Demand Reduction 500 581 0
Program Support
U.S. Personnel 125 - 176 - 176
Non-U.S. Personnel 125 - 160 - 160
ICASS Costs 125 - 170 - 170
Program Support 125 - 194 - 194
Sub-Total 500 - 700 - 700
Total 5,940 - 4,000 - 1,000

Colombia

Budget Summary ($000)

   

FY 2006 Actual

FY 2006 Supplemental

FY 2007 Estimate

FY 2008 Request

ACI

464,781

---

465,000

366,968**

INCLE

---

3,300

---

---

CFSP

29,970

---

61,035

*

Total

494,751

3,300

526,035

366,968


* The Critical Flight Safety Program (CFSP) was merged into Colombia's ACI budget in FY2008

*FY 2008 is the first year that funding for Alternative Development (AD) and Administration of Justice (AOJ) is not included in the ACI Account. AD and AOJ funding will fall under the ESF Account from FY 2008 onward, which for FY08 totals $139.5 million.

Program Objectives and Performance Indicators

Disrupt Illicit Drugs

Reduce the cultivation of coca and opium poppy to a non-commercial level.

Reduce and discourage coca and opium poppy cultivation in traditional growing areas, as well as potential new areas for cultivation, through forced eradication and alternative development.

Counter the rapid replanting and pruning of coca in sprayed areas.

Increase manual eradication in areas where aerial spraying is not feasible.

Maintain optimal mission readiness rates for an aging air fleet that is required to fly more hours every year.

Dismantle major drug trafficking organizations and prevent their resurgence.

Interdict cocaine and heroin at current high levels until production has been more severely reduced.

Identify and destroy drug producing laboratories to reduce demand for coca leaf and opium resin.

Support the GOC's increase in the number of police to extend state authority throughout the country.

Increase Government of Colombia (GOC) control of the vast Pacific coastal zones.

Employ technical assistance and training to allow the GOC to investigate, arrest, prosecute, and convict more key narcoterrorists.

Extradite major narcotraffickers to the United States.

Strengthen Institutions

Enhance respect for rule of law throughout Colombia and increase access to justice.

Strengthen permanent police presence in conflictive areas to cement the recently established government presence and help construct additional stations as needed.

Continue the transition to the oral accusatory system of justice and train more judges, prosecutors, and police.

Consolidation and Nationalization

Support Colombia's new Strategy for Strengthening Democracy and Social Development

Help Colombia implement the "Improving National Security" and "Consolidating State Presence" components of that strategy

Continue to transfer to the GOC greater responsibilities for counternarcotics funding, management, and operations currently supported by the USG, while maintaining operational results.

Transformational Diplomacy

Peace & Security: INL assistance to Colombia has helped transform Colombia from a country on the verge of becoming a narco-state to a democratically stable, economically healthy ally in an increasingly problematic Andean region. INL's support to Colombia's security forces (both military and police) is a small but essential element of Colombia's security budget, and provides much-needed technical assistance in the areas of drug crop eradication (both aerial and manual), drug interdiction, aviation support, public security, and training. As a result, the surge in illicit crop cultivation that occurred through the 1990s reversed from 2002 to 2004. Nearly all indicators show that Colombia's security is improving: violent crime, kidnappings, acts of terrorism, and the size and influence of Colombia's terrorist organizations declined. Eradication has reduced Colombian opium poppy cultivation by 68 percent since 2001, from 6,540 hectares to 2,100 hectares in 2004. Colombian coca cultivation and potential cocaine production are well below their 2001 peak despite an upswing in the 2005 USG estimate of coca cultivation, which was due to an 81 percent increase in the survey area (there was no USG poppy estimate in 2005). Continued support for the successful Carabinero program of expanding police presence throughout the country remains a high priority.

Colombia is still a country at war and Colombian soldiers and police still die daily in the battles for public security, establishment of state presence, and disruption of the illicit drug economy waged against the Revolutionary Armed Forces of Colombia (FARC), National Liberation Army, Colombia (ELN), and other narcotics traffickers. However, Colombia is at a turning point, and FY 2008 funds will help the GOC consolidate its hard-fought gains, further disrupt and diminish the illicit drug economy, train and equip more police and judges, and continue assuming responsibility for USG-funded programs.

Governing Justly & Democratically: Colombia's Latin American-style written judicial system is being transformed into a more efficient and transparent oral accusatory system. The new procedures are now in place in Bogota, Medellin, Cali, and seven other municipalities. Criminal cases in those areas are now being resolved more quickly and with a higher percentage of convictions. Although challenges remain, the GOC, with USG assistance, is working to have the system fully functioning nationwide by the end of 2008. This new judicial system, combined with Colombia's impressive extradition record, is strengthening Colombia's ability to bring justice to narco-traffickers, narco-terrorists, and other criminals.

Program Justification

Despite the gains made in recent years, Colombia remains a country fighting a multi-front internal war against narco-terrorists and narco-traffickers who have relied on the illicit drug economy to fund their operations. Colombia remains the supplier of roughly 90 percent of the cocaine and 50 percent of the heroin entering the United States. Aggressive disruption of the illicit drug trade, therefore, remains a top USG priority.

The funding requested in FY 2008 will continue to consolidate the successes of the Plan Colombia Emergency Supplemental of 2000 and subsequent Andean Counterdrug Initiative (ACI) programs. It will also be used to further develop and strengthen the GOC's institutions, a necessary prerequisite for Colombia's assumption of ownership and responsibility for USG-funded programs.

Program Accomplishments

Colombia's USG-supported aerial eradication program halted the rapid growth in coca cultivation that occurred through 2001. USG coca cultivation estimates went from 67,200 hectares in 1996 to 169,800 hectares in 2001, while the size of the area surveyed remained relatively stable. Between 2001 and 2005, the estimated area of coca cultivation declined by 15 percent, from 169,800 to 144,000 hectares, while the estimated potential cocaine production declined 22 percent, from 700 mt to 545 mt, despite a survey area that more than doubled in size in the same time period.

Colombia continued its series of consecutive record-breaking years for eradication of illicit crops in 2006, spraying 171,613 hectares of coca and manually eradicating another 42,111 hectares. These represent improvements of 24 and 35 percent, respectively, over 2005's efforts, and also represent the first time Colombia has exceeded 200,000 hectares eradicated in a single year. Colombia also eradicated over 1,900 hectares of opium poppy in 2006, and declared that no plantation-sized cultivations of opium poppy remained in the country.

In 2006, the Colombian National Police (CNP) formally made manual coca eradication a nationwide responsibility of regular, municipal-level police units with the initiation of an institutional plan entitled "Todos Contra la Coca," or "Everyone Against Coca."

In 2006-2007, despite intense diplomatic pressure from Ecuador, the CNP sprayed over 15,600 hectares of coca near its border with Ecuador, much of it planted by the FARC after the halted aerial eradication in that area in early 2006.

Continued intelligence coordination and more intensive utilization of the Counterdrug Brigade has kept the number of hostile fire impacts on spray aircraft below historic levels, even as the program sprayed more hectares. Reducing hostile fire incidents and impacts has helped to sustain the operational tempo of aerial eradication operations by reducing time lost to repair damaged aircraft.

In 2006, Colombia interdicted 178.3 mt of cocaine and cocaine base, their second highest interdiction total ever, and the fifth consecutive year that total has exceeded 100 mt. The INL-supported Air Bridge Denial program has caused the number of illegal flights over Colombia to decrease more than 70 percent, from 637 in 2003 to 171 in 2006. Colombian forces also destroyed 1,952 rustic cocaine base labs and 156 cocaine HCl labs in 2006.

These efforts demonstrate a coordinated attack across the entire drug supply chain - cultivation, precursors, processing, and transportation - that is depriving narco-traffickers and narco-terrorists of billions of dollars in potential income. INL-supported programs also work in conjunction with USG investments in alternative development programs to encourage farmers to abandon the production of illicit crops. They also help the GOC provide the public security necessary for the success of not only these programs, but of Colombia's continued social and economic development.

Colombia's justice system continued its transition to an accusatorial system similar to that of the United States in 2006. The GOC, with USG assistance, is working to have the system fully functioning nationwide by the end of 2008. This new judicial system, combined with Colombia's impressive extradition record, is strengthening Colombia's ability to bring justice to narco-traffickers, narco-terrorists, and other criminals. Over 20,000 prosecutors, judges, and criminal investigators have received intensive training in the new accusatory system.

Since 2002, the GOC estimates over 41,000 persons have demobilized - 11,000 under the individual desertion program and over 30,000 United Self-Defense Force of Colombia (AUC) (paramilitary) under the collective program. AUC members who chose not to demobilize, as well as those who do not qualify for the demobilization program, will continue to be investigated and prosecuted under normal Colombian law. In 2006, FARC desertion increased over 50 percent compared to 2005.

As part of USG and GOC nationalization efforts, the USG continues to help the CNP Air Service (ARAVI) train more pilots and mechanics within Colombia and perform more maintenance and repairs in Colombia. A shift of procurement operations for aviation repair and maintenance parts from the United States to Colombia is under way, and an on-the-job training program commenced in 2006. With USG assistance, ARAVI began training for over-water Night Vision Goggle (NVG) missions in 2006.

The Air Bridge Denial (ABD) program completed its third year of operations, and the number of illegal flights over Colombia dropped to 171 in 2006, a decrease of more than 70 percent from 2003. Coordination between the Colombian Air Force (COLAF), other GOC ground forces, and Colombia law enforcement agencies also increased. One aircraft was forced down. The COLAF also coordinated with other GOC authorities to destroy illegal airfields and monitor legitimate ones. In 2006, the program resulted in eight law enforcement actions, resulting in four aircraft impounded, 1.6 tons of cocaine seized, and one arrest.

FY 2008 Program

INL's FY 2008 assistance program in Colombia seeks to further the transformational process in the areas of Peace & Security and Governing Justly & Democratically by continuing to support Colombia's successful counternarcotics, public security, and judicial reform programs. At the same time, we will continue to transfer responsibility and operational control of these programs to the GOC so that USG funding levels can continue to decline in the long term.

These goals will be challenged by 1) reduced INL financial support for Colombia in FY 2008, 2) increased operational pace of all programs as a result of the rapid rate at which President Uribe has moved against narcoterrorism, and 3) the GOC's focus on rapidly augmenting its own public security forces and operations.

INL's funding for Colombia will support Colombia's Strategy for Strengthening Democracy and Social Development, the GOC's follow-on to Plan Colombia. The strategy continues Plan Colombia's successful counter-terror, counter-drug, democracy, human rights, alternative development, and humanitarian policies, and places increased emphasis on consolidating state presence and development through sustainable growth and trade. Improving national security and consolidating state presence are two of the Strategy's six components which INL-funded programs directly support.

Eradication

The Plan Colombia Helicopter Program (PCHP)

The PCHP consists of UH-1N, UH-1H II, UH-60L, and K-Max helicopters and is part of the Colombian Army (COLAR) Aviation program. It provides support to eradication, interdiction, counterterror, high-value targets, and humanitarian missions, using human rights-vetted Colombian military personnel. Nationalization efforts to train pilots and mechanics will continue in FY 2008, and the number of U.S. contractors is declining, according to plan. The Colombian Army Counterdrug Brigade conducts drug interdiction and provides essential ground security for aerial eradication, a crucial element in reducing ground fire aimed at our spray aircraft.

Colombian National Police (CNP) Aviation Support

Funding for the ARAVI aircraft supports transport aircraft, eradication escorts, and intelligence platforms for interdiction and eradication operations. Funds are used to support the fleet of 60 rotary-wing and 21 fixed-wing ARAVI aircraft. Other major expenses will include training for CNP personnel and the purchase of spare parts, tools, contract labor maintenance costs, ammunition, training, communications support, and aviation-related infrastructure costs.

Colombian National Police (CNP) Support for Eradication

This program enhances Colombia's ability to conduct sustained eradication operations against illicit cultivation. Funding will provide for operations and maintenance for the eradication aircraft fleet that includes spray aircraft, escort helicopters, imagery gathering aircraft, and heavy transport aircraft. These funds will also be used to purchase three aircraft to replace lost or aging spray aircraft, as well as the chemicals used for eradication. The new spray aircraft will be able to spray coca and poppy and will be easily supportable by the GOC, facilitating program nationalization. These funds will also support upgrades and maintenance of reconnaissance aircraft equipped with advanced imagery and mapping devices to improve the CNP's ability to locate illicit crops. Manual eradication efforts will be increased in areas where aerial spraying is not feasible, although we will proceed with caution since manual eradication is more dangerous than aerial eradication. We will provide equipment, training, and technical assistance to protect these units from mines, explosive devices, and violent narcotraffickers. The 2007 spray plan will reflect a further pursuit of smaller, more dispersed fields, as well as more frequent repeat spraying of key cultivation areas. Aircraft range limitations and severe topography will diminish efficiency and keep eradication flight hours high.

Colombian Army (COLAR) Counterdrug Mobile Brigade

Continued support and development of the Counterdrug Brigade enhances Colombia's ability to conduct sustained eradication missions and interdiction operations. The majority of these funds will be used to train, equip, transport, and sustain the Counterdrug Brigade. Funding will provide logistical and operations support to the COLAR Counterdrug Brigade's interdiction operations, including high value targets, as well as to the CNP's aerial eradication missions. Funds will also provide similar support to other selected units of the Colombian military performing counternarcotics operations.

Colombian Army (COLAR) Aviation Support

COLAR Aviation support enhances the ability to conduct both interdiction and eradication operations. FY 2008 funds will support the COLAR Aviation Brigade aircraft, consisting of UH-1N, UH-60, Huey II, and K-MAX helicopters that provide airlift support for eradication and interdiction operations, as well as high-value target missions. Major expenditures will include fuel, parts, repair and maintenance of the helicopters, training for crews and support personnel, and infrastructure support. FY 2008 funds will also be used to support helicopters and facilities dedicated to protecting the petroleum infrastructure in Arauca Department. In 2008, Colombia will continue to require sustained high levels of helicopter airlift support. Three battalions of the Counterdrug Brigade will continue to expand their area of operations from the conflict regions of Colombia.

Interdiction

Airbridge Denial Program

These funds will provide continued operational and maintenance support for the Colombian Airbridge Denial Program (ABD) consisting of five Cessna Citation 560 aircraft and two C-26 aircraft. It will also provide continued training for Colombian aircrews and USG contract ground and air safety monitors. ABD assets will conduct limited maritime air patrols needed to extend Colombian Government control over trafficking by sea. This would allow the Colombian Air Force to conduct maritime patrol missions in conjunction with the Colombian Navy and Joint Interagency Task Force South (JIATF-S) providing better coverage of the trafficking routes in, through and departing Colombian territory. Other in-country costs associated with the ABD program will continue to be funded through other headings within the Colombian Military budget.

Air Force Interdiction and Surveillance

Narcoterrorists have traditionally exploited Colombia's vast and relatively unsecured borders to move illicit narcotics, weapons, money and other contraband via air. To counter this threat, logistical and technical assistance support will be provided to the Colombian Air Force for interdiction and surveillance programs in support of endgame operations against unauthorized aircraft flights (the Air Bridge Denial program) in coordination with COLAR and CNP Aviation units. Funds will cover in-country expenses and INL contractor costs in support of the ABD program. Uses include assistance in the maintenance and operation of forward operating locations, minor infrastructure improvements, fuel, training, U.S. safety monitors, and specialized equipment. Funding also pays for the contract maintenance and operation of Cessna Citation C-560, Cessna 182, and FAC C-26 aircraft.

Navy/Maritime Interdiction

Colombia's extensive river network connects the interior with the coastal regions and is a key link between narcotics cultivation and processing facilities and embarkation points. These funds will be used to train and equip specialized units to analyze operational intelligence and interdict contraband traffic, particularly along Colombia's Pacific coast. The primary beneficiaries of this program are the Colombian Navy units.

Colombian National Police (CNP) Support for Interdiction

Continued support for this program enhances Colombia's ability to conduct interdiction operations by funding non-aviation CNP Anti-Narcotics Directorate (DIRAN) activities, including training and equipping DIRAN's 20 operational companies and three airmobile interdiction companies (Junglas). Funding will cover DIRAN and Junglas training costs in Colombia and at U.S. military and commercial training institutions. It will also upgrade existing DIRAN interdiction facilities, especially along Colombia's eastern, southern and western zones so that DIRAN can project force into these remote but critical areas. Funding will also provide equipment and training to sustain a DIRAN Polygraph Unit to ensure the integrity of personnel performing interdiction and security duties in Colombia's ports and other locations. The Airport Security program will continue to develop with funding for small equipment purchases and maintenance, operational expenses, anti-narcotics police training, and recertification of canines and handlers. As with eradication efforts, these programs are an ongoing cost of making the illicit drug trade unsustainable in Colombia.

Carabineros

The reestablishment of public security and general government presence in conflict zones will continue to require an expansion of the CNP's presence in these zones. Funds will be used to organize, train, and equip municipal police to be stationed in new areas or dangerous areas that are currently severely understaffed. Funding will also be used to continue to organize, train and equip the 150-man mobile "Carabineros" (rural police) squadrons. Equipment purchases will include field equipment, light weapons and munitions, communications/command and control systems, medical supplies, force protection upgrades, vehicles, and operational logistics support. U.S. funds will also be used to continue to construct and upgrade hardened police stations in the larger municipalities to provide cover for reinserted CNP units in particularly conflicted areas.

Judicial Reforms Program

Colombia's transition to an accusatorial judicial system similar to our own has required a significant amount of training and technical assistance and has led to a change in the roles and responsibilities of judges, prosecutors, and criminal investigators. It is hoped that the implementation of this new judicial system throughout the country will be completed in 2008. The USG, through the Justice Sector Reform Program (JSRP) and rule of law assistance, will continue to help Colombia in this process. DOJ, USAID, and other USG agencies will provide training, technical assistance, and equipment to enhance the capacity and capabilities of the Colombian system and to make it more transparent to the public. Significant training and technical assistance will be provided in the area of money laundering, asset forfeiture, and organized crime investigations. As in our police and military programs, there will be significant emphasis on respect for human rights and anticorruption measures. Specialized units will receive training in investigating and prosecuting these types of cases. Technical assistance, specialized equipment, and training will also be provided to support areas crucial to the new judicial system like forensics and professionalization.

Other Programs to Promote the Rule of Law

This portion of the budget includes drug awareness and demand reduction efforts and the important Culture of Lawfulness program that promotes a respect and appreciation for rule of law in the youth who comprise the future of Colombia. Already in ten cities, the program will train additional teacher trainers to move the program closer to self-sufficiency. The Culture of Lawfulness program will continue to be integrated into CNP basic training programs. We will also provide limited technical assistance and equipment to the GOC for its individual deserter program. ACI funding administered by the DOJ contributes to training for judges, prosecutors, and police, and the promotion of timely and effective investigations and prosecutions of human rights violations. Additionally, there is a program that will provide training and technical assistance to Colombian law enforcement groups that are attacking narco-terrorist finances.

Trafficking in Persons (TIP)

INCLE funding will be used to help Colombia strengthen its capacity to interrupt national and transnational human trafficking networks. Training and technical assistance for law enforcement on how to identify and rescue victims, investigate cases, coordinate and prepare prosecutions, and collaborate with nongovernmental organizations are imperative. Funding will also be used to support the adoption of anti-trafficking laws, improve the legal framework for addressing TIP, and promote the rescue and protection of victims.

Critical Flight Safety Program

The primary objective of the multi-year Critical Flight Safety Program (CFSP) is to ensure aircrew and aircraft safety, specifically structural integrity, of the aircraft operated by the INL Air Wing. Upon completion of this program the Department will have ensured to the best of its ability that the INL aviation fleet will not suffer loss of life or valuable aviation resources due to structural fatigue and aging aircraft. The secondary objective of the CFSP is to refurbish 30-year old, Vietnam-era military aircraft to a modern commercially supportable standard, thereby making them less costly to operate, easier to maintain, and more reliable. In summary, the Air Wing CFSP will: increase safety for aircrews and personnel flying in these aircraft; extend the service life of these aircraft, maximizing their value; control or potentially eliminate large increases in maintenance and part costs; make aircraft commercially supportable; and increase operational readiness and sustain mission success.

In FY 2008 we will continue refurbishing and upgrading aging Vietnam-era UH-1H helicopters, refurbishing UH-1N helicopters (giving first priority to eradication helicopters), extending the service life of OV-10D airframes, and initiating armament upgrades for Colombia search and rescue (SAR) aircraft.

Program Development and Support (PD&S)

PD&S funds are used for general administrative and operating expenses for the planning, design, implementation, monitoring, and evaluation of INL programs in Colombia. Funds cover salaries, benefits, and allowances of direct hire and contract U.S. and foreign national personnel; residential and warehouse leasing; field travel; International Cooperative Administrative Support Services (ICASS) costs (these are the overhead costs paid to the Embassy for occupying an Embassy facility and using basic Embassy services); and other general administrative and operating expenses for counternarcotics and anticrime program planning, design, implementation, monitoring, and evaluation. The NAS may be moving to new office space within the main Embassy building in 2008; some funds will be used to adapt, equip, and furnish this new space. These funds also cover temporary duty (TDY) personnel and general administrative and indirect operating expenses that cannot be identified with a specific project.

Colombia
INL Budget
($000)

FY 2006 FY 2006
Supp
FY 2007 FY 2007
Supp
FY 2008
Support to the Colombia Military
Army Counterdrug Mobile Brigade 1,832 - 2,200 - 2,000
Army Aviation Support 123,453 - 104,080 - 99,525
Air Bridge Denial Program 4,574 ** 15,800 - 14,000
Navy Maritime Interdiction Support 455 *** 1,000 - 1,000
Sub-Total 130,314 - 123,080 - 116,525
Support to Colombian National Police
Aviation Support 70,518 - 69,000 - 65,000
Support For Eradication 81,695 - 81,950 - 85,000
Support For Interdiction 16,513 - 16,500 - 15,000
Administrative Support 1,376 - 1,000 - -
Sub-Total 170,102 - 168,450 - 165,000
Carabineros 19,367 - 18,650 - 20,000
Judicial Reforms Program 5,940 3,300 6,000 - 6,000
Prison Security 89 - - - -
Individual Deserter Program 495 - 500 - 500
Demand Reduction 228 - 500 - 214
Culture of Lawfulness 594 - 250 - 250
Money Laundering - - 250 - 879
Institutional Reform for Ministry of Defense 178 - - - -
Bomb Squad/Explosive Database 228 - - - -
Sub-Total 27,119 3,300 26,150 - 27,843
Program, Development & Support
U.S. Personnel 1,938 - 1,915 - 2,223
LES 2,796 - 2,696 - 2,711
ICASS Costs 1,004 - 938 - 1,100
Program Support 1,588 - 1,851 - 1,566
Sub-Total 7,326 - 7,400 - 7,600
NAS Sub-Total 334,861 3,300 325,080 - 316,968
Critical Flight Safety 29,970 - 61,035 - 50,000
Alternative Development (USAID) *
Support for Democracy 18,810 - 19,000 - *
Alternative Development 72,005 - 73,500 - *
Support for Vulnerable Groups/IDP 30,690 - 31,000 - *
Demobilization and Reintegration 8,415 - 16,420 - *
AID Sub-Total 129,920 - 139,920 - *
Counternarcotics Total 494,751 3,300 526,035 - 366,968
* In FY 2008 Alternative Development managed under Economic Support Funds (ESF)
** $13 million in FY 06 was funded as part of INL central budget but was spent in the Colombia country budget for ABD
*** $13 million of FY 06 supplemental INCLE funding for the procurment of a maritime patrol aircraft for the Colombian Navy was appropriated by P.L. 109-234, but was later rescinded by P.L. 110-28.

Ecuador

Budget Summary ($000)

  

FY 2006 Actual

FY 2007 Estimate

FY 2008 Request

ACI

19,800

17,300

7,000*

INCLE

---

---

200

Total

19,800

17,300

7,200

*FY 2008 is the first year that funding for Alternative Development (AD) and Administration of Justice (AOJ) is not included in the ACI Account. AD and AOJ funding will fall under the ESF Account from FY 2008 onward, which for FY08 totals $6 million.

Program Objectives and Performance Indicators

Interdiction

Enhanced Ecuadorian National Police, criminal justice system and military forces efforts coupled with improved cooperation disrupt the transit of drugs through Ecuador from neighboring countries.

More counternarcotics police stationed along frequently used or newly emergent trafficking routes create choke points; and improvements in mobility, communications and technical operations enable a ten percent increase in drug seizures by the counternarcotics police.

Enhanced interdiction operations by the Ecuadorian army and navy in the country's coastal waters and along land borders lead to a ten percent increase in seizures.

International trafficking in drugs, persons and other illicit goods are disrupted and criminal organizations dismantled.

Stabilization

A ten percent increase in Ecuadorian law enforcement operations conducted along the border with Colombia discourages narcotics traffickers and illegal armed groups from crossing into Ecuador.

Criminal Justice Development

Government institutions are able to better combat drug and other organized crime groups because Ecuadorian police and military personnel have the required knowledge and skills; and police, prosecutors and judges have a common understanding of permissible and best-practice investigatory techniques; documentation and evidentiary requirements; oral testimony and other necessary elements to conduct more successful investigations and prosecutions of significant drug cases under the new code of criminal procedures.

Enhanced police, prosecutorial and judicial capabilities lead to a five percent increase in prosecutions and convictions.

Money laundering and precursor chemical controls are implemented with greater specialized expertise, resulting in increased prosecutions and convictions for violations.

Transformational Diplomacy

Traffickers exploit Ecuador's porous land borders, maritime ports, and its vast Exclusive Economic Zone in the Pacific. The growth of drug production by Colombian armed insurgent groups has rendered Ecuador's northern border particularly vulnerable to illicit trafficking and production. Similarly, successes against Colombian drug transport organizations have forced them to shift tactics to load drugs onto Ecuadorian vessels at sea without having crossed Ecuadorian soil. Weak public institutions, widespread corruption and a poorly regulated financial system make Ecuador vulnerable to organized crime. Border controls of persons and goods remain weak and easily evaded. The Ecuadorian National Police and military forces have neither personnel nor equipment adequate to meet all of the international criminal challenges they face.

U.S. counternarcotics assistance is provided to improve the professional capabilities, equipment and integrity of Ecuador's police, military and judicial agencies and enable them to counter illicit drug activities more effectively. There has been a dramatic increase in the use of Ecuadorian-flagged motherships carrying drugs since 2004. The U.S. is working with Ecuador to facilitate effective law enforcement regarding interdiction of suspected vessels and the judicial treatment to be accorded persons engaged in illegal trafficking. With a dollarized economy and weak banking controls, bulk currency enters and leaves Ecuador with little or no control. The USG is providing operational support to financial intelligence and investigative units being formed and trained in order to combat money laundering and financial crimes. Major USG-funded projects train police, prosecutors and judges for their roles under the revised criminal procedures, and USG programs seek to increase awareness of the dangers of drug abuse and to disseminate proper information about abuse prevention through demand reduction programs.

Program Justification

Ecuador is a major transit country for illicit drugs produced in Colombia and Peru. Cocaine hydrochloride and heroin from Colombia and Peru are carried to Ecuador's air and sea ports for international distribution in volumes ranging from ingested individual loads of a few hundred grams to multi-ton sea shipments. Ecuador's porous borders with Colombia and Peru have been inadequately controlled. The growth of drug production by Colombian armed insurgent groups has rendered Ecuador's northern border particularly vulnerable to illicit trafficking and production spillover in recent years. Ecuador's long seacoast is also inadequately protected against illicit activities of all kinds. Increasingly, drugs are loaded onto Ecuadorian vessels at sea by Colombian boats without having crossed Ecuadorian soil.

While Ecuador generally cooperates with the U.S. in the fight against narco-trafficking and regional terrorism, drug trafficking has steadily increased in recent years. Ecuador's law enforcement and border control programs are inadequate to deal with this growing trend, and weak institutions, widespread corruption and an unstable government further impede progress. The Ecuadorian National Police (ENP) and military forces are inadequately equipped and trained to deal with international criminal or insurgent pressures.

Despite some advances in recent years, port cargo remains inadequately controlled. Cocaine seizures reached 38 metric tons in 2006, while seizures of heroin and precursor chemicals continued at high levels. Laboratory seizures pointed to cocaine processing activity in southern Ecuador. In November 2006, Ecuador's National Police uncovered three cocaine processing labs in southern Ecuador in the largest drug bust operation in Ecuador to date. This development indicates that Ecuador may be moving from a transit country to a production platform. Additionally, uneven implementation of the new (2001) criminal procedures code and a faulty judicial system hamper prosecutions. The USG is providing equipment, infrastructure and training to help improve counternarcotics performance.

There is no evidence that significant illicit crops or drugs are produced in Ecuador. Cultivated coca has been found occasionally in widely scattered, sparsely planted small plots. The plantations discovered from 2000 through 2006 were of little commercial significance, singly or cumulatively. Maritime cocaine shipments aboard Ecuadorian flag vessels and through Ecuadorian waters again increased in 2006. Although Ecuador has no bilateral maritime agreement with the U.S., law enforcement operators have improved their ability to work cooperatively to facilitate boarding and search of suspect vessels by United States law enforcement personnel. Detected shipments of drugs via international mail and messenger services continued at a high level in 2006.

Program Accomplishments

The USG continued to receive good cooperation from the ENP and from the Armed Forces, who do the bulk of border patrolling in Ecuador and continue to seize large amounts of white gas, a chemical precursor for drug processing. The GOE continues to reinforce its security presence in the northern border area. An ongoing initiative begun in 2001 seeks to improve the staffing, mobility and communications of military and police forces in the northern border region. Maritime cooperation has increased dramatically in response to a surge in maritime smuggling from Ecuador. Resources are being provided to the Ecuadorian Navy for expanded patrol and interdiction operations on Ecuador's northwestern coast and for in-port inspections. In August 2006, Ecuador and the U.S. finalized standard procedures for interdicting and boarding suspected smuggling vessels on the high seas. Cooperation between the USG and GOE agencies in 2006 resulted in several successful large-scale drug interdiction operations. The control of drug precursor chemicals continued through 2006 with a high level of seizures for the fourth straight year

The Counternarcotics Directorate (DNA) of the National Police was increased from 1385 to 1500 members in 2006. New DNA bases and stations were opened with USG assistance in 2006 in El Oro Province at Puerto Bolivar (Machala) and Y de Jobo. Additionally, an air police helicopter base was constructed in Pichincha Province at Santo Domingo de los Colorados. Construction of a large Ecuadorian navy pier at San Lorenzo, Esmeraldas Province to be completed by spring 2007 will give maritime forces greater flexibility to interdict maritime smuggling routes.

In 2006, construction began on a major police base and inspection station at Tulcan, Carchi Province, where the Pan American Highway joins Ecuador and Colombia. A port cargo inspection facility in Esmeraldas also was begun in 2006. Numerous smaller construction projects, including several military vehicle and aircraft support facilities, were completed during the year. Communications equipment, ground vehicles and the canine program continue to be areas supported through USG assistance and for which recent successful operations can be credited. Digital x-rays and ion scanners provided by the USG are being used for cargo and passenger inspections in many locations.

Judicial police who successfully completed a USG-provided course on the new penal code in 2002 are now training their colleagues. Major USG-funded projects begun in 2006 have successfully helped train police, prosecutors and judges for their roles under the revised criminal procedures.

The U.S. mission is working with the Ecuadorian Army to ensure that they can rapidly move trained forces to counteract incursions by Colombian insurgents on the northern border. The Narcotics Affairs Section (NAS) and the U.S. Military Group provide operational support, including field rations, fuel, uniforms, and other non-lethal field gear.

FY 2008 Program

Narcotics Law Enforcement

Police Operations: Police operations are responsible for nearly all of the drug seizures in Ecuador. USG facilities construction in recent years and the Ecuadorian government's augmentation of the Counternarcotics (CN) police force will increase the volume and range of police operations, in turn increasing the need for operational support, such as vehicles and communications. Project funding in FY 2008 sustains the DNA, which receives minimal budgetary support from the ENP. Funds will support the DNA port and canine operations; acquisition of law enforcement and communications equipment; vehicle acquisition, maintenance, repair and operational costs; and the cost of providing a port advisor from the U.S. Customs and Border Protection Agency (DHS/CBP).

Police Facilities Construction: Funding will support expanding police presence and counternarcotics operations to sensitive outlying locations inadequately protected against narcotics trafficking. Program funds will construct new DNA bases, complete with inspection stations and living quarters, which will enable the GOE to maintain 30 to 40-member units at key interdiction points, especially in remote sites on the northern Ecuadorian border with Colombia, and major roadways connecting Ecuador's borders and ports.

Police and Judicial Training: Law enforcement training is essential to improving the detection and seizure of drugs and drug-related contraband and the disruption of trafficking organizations. Program funding will extend and refine training in implementation of the new code of criminal procedures to emphasize practical application of the code in areas such as chain of evidence, forensic science, and oral trial practice. Strong emphasis will also be given to training in proper implementation of the comprehensive money laundering law. The addition of new DNA personnel has further increased the need for basic and advanced training emphasizing ground and airborne field operations, intelligence methods, and cargo and personnel inspection techniques.

Money Laundering and Chemical Control: With a dollarized economy and weak banking controls, bulk currency enters and leaves Ecuador with little or no control. In order to combat this problem, the Government of Ecuador approved a draft comprehensive money laundering law in 2005. FY 2008 funds will support the formation, training and operations of new financial intelligence and investigation units. The country also produces chemical precursors and is a transit corridor for diverted chemicals. FY 2008 program funds will provide training and equipment to assist the GOE's establishment of chemical control units, as well as for the enforcement units that will support them.

Military Border and Coastal Control

To discourage and counteract incursions by Colombian insurgents on the northern border, the Ecuadorian Army must be able to rapidly deploy trained forces to problem areas. Supporting military border and coastal control units, such as the quick reaction forces and the marine detachments, with vehicles, field equipment and operational support in FY 2008 will further strengthen Ecuador's ability to protect its national territory against narco-terrorist incursions and to interdict illicit international shipments of drugs and chemicals.

Drug Awareness/Demand Reduction

Demand reduction programs seek to increase awareness of the dangers of drug abuse and to disseminate proper information about abuse prevention. FY 2008 support to the Ecuadorian Ministry of Education and non-governmental organizations active in the awareness and prevention fields will continue projects that work to counter Ecuadorian public misunderstandings and disinformation regarding U.S. policies and activities and explain the true nature of drugs, terrorism and other transnational challenges. Support will include provision of informational materials, sponsor travel to view U.S. counternarcotics projects and activities, and fund guest speakers.

Program Development & Support (PD&S)

Funds will be used for the salaries, benefits, allowances and travel of direct hire and contract U.S. and foreign national personnel, residential leasing, International Cooperative Administrative Support Services (ICASS) costs and other administrative and operating expenses for program planning, design, implementation, monitoring, and evaluation.

Ecuador
INL Budget
($000)

FY 2006 FY 2006
Supp
FY 2007 FY 2007
Supp
FY 2008
Interdiction
Police Operations 2,757 3,000 2,750
Police Facilities Construction 1,325 500 1,650
Police and Judicial Training 875 1,100 800
Military Border and Coastal Control 2,358 3,000 950
Drug Awareness/Public Diplomacy 60 60 50
Sub-Total 7,375 7,660 6,200
Financial Crimes and Money Laundering
Money Laundering/Chemical Control 200 440 180
Program Support 0 0 20
Sub-Total 200 440 200
Alternative Development 11,425 8,400 *
Program Development and Support 800 800 800
Total ** 19,800 17,300 7,200
*Alternative Development now managed under Economic Support Funds (ESF)
** $200 K of FY 08 total is INCLE Funding vice ACI Funding

Panama

Budget Summary ($000)

FY 2006 Actual

FY 2007 Estimate

FY 2008 Request

4,455

4,000

1,000

Program Objectives and Performance Indicators

Enhance Panama's interdiction capability to disrupt the regional flow of illicit drugs, chemicals, weapons, and people by improving its law enforcement infrastructure and control of its borders and international ports of entry and exit.

Assistance to increase operational readiness of the Panamanian National Police (PNP) Anti-Drug Sub-Directorate's (DAD), the newly created Anti-Drug Joint Task Force (FTCA), the PNP's Mobile Inspection unit, the K-9 unit, airport groups, the Riverine unit, and special operations units within the Directorate of Information and Intelligence (DIIP) will result in a 10 percent increase in seizures of illegal drugs by PNP components over FY 2007.

Establishing an effective coastal/riverine interdiction capability; ensuring better inter-agency communications capabilities; augmenting specialized units' anti-terrorism capability; and constructing border outposts will result in a 10 percent increase in the number of seizures of illicit drugs in Panama's border regions over FY 2007.

Facilitating the National Maritime Service's (SMN) move to a new Atlantic Base; supporting the National Air Service's (SAN) Fixed-wing and Rotary-wing fleets that participate in counter-drug missions; providing support to the Panamanian Coast Guard once it has been created from the merger of the SMN and the SAN; establishing a spare-parts logistics infrastructure to support previously donated USG equipment; increasing the pool of trained pilots, mechanics, and trainers; and improving communications inter-operability with other Panamanian Public Forces will result in a 10 percent increase in the number of maritime seizures of illegal contraband in and through Panamanian waters, and in air readiness and air mobility over 2007 figures.

Transformational Diplomacy

Panama's Interdiction Program advances the Secretary's Transformational Diplomacy Peace and Security objective by funding counternarcotics projects designed to reduce the flow of illegal narcotics and other contraband through Panama and its surrounding waterways. Panama is the only land connection between North and South America, as well as a major global air traffic, financial, communications, and world commerce hub. This makes Panama a natural nexus for transnational crime-including drug and precursor chemical trafficking, money laundering, arms trafficking, and illegal immigrants. The flow of illicit drugs has contributed to increasing domestic drug abuse, encouraged public corruption, and undermined the Government of Panama's (GOP) criminal justice system.

Program Justification

By virtue of its geographic position and well-developed transportation infrastructure, Panama is a major drug transshipment point to the United States and Europe. Panama's containerized seaports, the Pan-American Highway, a rapidly growing international hub airport, numerous uncontrolled airfields, and unguarded coastlines on both the Atlantic and Pacific facilitate drug movement. These drugs are moved in fishing vessels, cargo ships, small aircraft, and go-fast boats. Illegal airplanes utilize hundreds of abandoned or unmonitored legal airstrips for refueling, pickups, and deliveries. The Torrijos Administration (which took office in September 2004) has cooperated closely with the U.S. and its other neighbors on security and law enforcement issues, but Panama's budgetary constraints limit its law enforcement. U.S. support to Panama's law enforcement agencies remains crucial to ensure fulfillment of agency missions.

Program Accomplishments

In 2006, several USG-supported GOP units grew and expanded operations--the Public Ministry's Technical Judicial Police (PTJ) Sensitive Investigative Unit (SIU) responsible for investigations of major drug and money laundering organizations; as well as the Panamanian National Police (PNP) Mobile Inspection Unit and Paso Canoas (Costa Rica border) Interdiction Enhancements, the Tocumen International Airport Drug Task Force, and the Canine Unit. International drug-related arrests increased slightly in 2006 from 2005. A three-year investigation by the Drug Prosecutors Office (DPO), the PTJ, and several other law enforcement agencies in the region culminated in the May 2006 arrest in Brazil of Pablo Rayo Montano, a Colombian-born drug kingpin. Assets located in Panama belonging to his criminal cartel were among those seized by the GOP following his indictment by a U.S. federal court in Miami.

INL and other USG financial assistance, technical help and professional cooperation enabled the GOP to further enhance its capability to interdict drugs and secure its land, maritime and air borders that resulted in increased drug and drug money seizures in 2006. This included 36,635.5 kgs of cocaine, 107.24 kgs of heroin, 4,276.9 kgs of marijuana, $8,324,761.39 in currency, diaqmonds and gold, 299 arrests for international drug-related offenses, and seven extraditions for such offenses in 2006. Also in 2006, U.S. Immigration and Customs Enforcement (ICE) developed a joint strategic bulk cash smuggling initiative with Panamanian Customs called Operation Firewall, which resulted in seizures of approximately 40 kgs of gold (valued at approximately $900,000), $357,100 in U.S. currency, and 26,000 Euros.

The SAN also provided excellent support for counternarcotics operations, for example, seizing 500 kgs of cocaine and a stolen aircraft, and apprehending two Mexican traffickers in April 2006. The SAN also participated in the interdiction of several go-fast targets in cooperation with Joint Interagency Task Force (JIATF) South, and seized a twin engine King Air B-90 when traces of drugs were detected through an IONSCAN machine donated by the USG. In 2006, the SMN continued to respond to USG requests for boarding and interdictions, assisted the U.S. Coast Guard (USCG) with verifying ship registry data, and transferred prisoners and evidence to Panama for air transport to the United States.

In 2006, Panama also made steady progress in other areas of law enforcement, police professionalism and integrity. A USG-funded "Culture of Lawfulness" program has trained officials from the Ministry of Education, the PNP, and the PTJ, and a separate initiative to train twelve PNP officers as certified polygraph examiners has resulted in improved PNP candidate selection. With the new precursor chemical control legislation in place, focus has shifted towards capacity building to assist in implementation of the new laws. The new legislation created a chemical control unit, which worked closely with DEA Diversion Investigators to initiate investigations on suspicious companies. The Chemical Control Unit identified 20 companies that need to be monitored on a regular basis and conducted administrative inspections at several company sites. The Chemical Control Unit also coordinated with the PNP Narcotics Unit to conduct the necessary enforcement operations. The GOP also improved its ability to combat precursor chemical diversion through training and by conducting joint investigations with the DEA in 2006. In the area of drug awareness and demand reduction, the National Drug Control Council (CONAPRED) funded seven prevention and/or treatment projects with a total cost of approximately $1.05 million in 2006. The Ministry of Education and CONAPRED, with USG support, promoted anti-drug training for teachers, information programs, and supported the Ministry of Education's National Drug Information Center (CENAID).

FY 2008 Program

Interdiction/Border Control

Panamanian National Police (PNP): The PNP bears the principal responsibility for disrupting the large volume of Colombian narcotics being transshipped to the United States as well as other contraband being smuggled along this principal trafficking corridor. The PNP's funding levels remain insufficient to meet the dual challenges of confronting the Andean spillover as well as maintaining law and order in the rest of the country. USG assistance in FY 2008 will focus on training and technology to ensure the PNP's ability to respond to these threats. The USG will provide a groundbreaking six week course in advanced police management developed by the Embassy's Narcotics Affairs Section (NAS) in partnership with the University of Louisville's Southern Police Institute. Additional funding will be used to leverage existing partnerships and facilitate knowledge-sharing with current partners such as Boston, Miami Dade and Vancouver, British Colombia Police Departments and prosecutorial partner, the U.S. Attorney's Office for the District of Massachusetts. These exchanges will concentrate in key areas such as public corruption, use of crime mapping technology, community-based policing and 911 call/dispatch technology. The NAS will also continue to provide equipment (including vehicle spare parts for vehicles previously donated by the NAS), training, and operational expenses for the PNP mobile interdiction team and the PNP's K-9 unit.

Border Enhancement: This project assists GOP law enforcement agencies with controlling trafficking of narcotics, arms, illegal migrants, and other contraband along the country's major transportation routes. Funds will provide training, equipment, and infrastructure support on PNP operating bases along the Panama/Costa Rican border and at the Meteti in the Darien, as well as a counternarcotics advisor to enhance security controls at Panama's major airports and choke points along the Pan-American Highway. The NAS will continue to provide equipment, training, and operational expenses for the chemical group (under the Attorney General's leadership), the Technical Judicial Police's (PTJ) vetted unit, and the Guabala checkpost border police.

National Maritime Service (SMN): The SMN provides law enforcement and security for Panama's territorial waters (including the Panama Canal), a major smuggling corridor for drugs and other contrabands. FY 2008 funds will continue to provide equipment (including two new vehicles that will be used to support mobile boat maintenance teams), training, maintenance on previously USG-donated 82 ft patrol boats, infrastructure support (including the building of floating piers, boat ramps, maintenance facilities, and limited housing) on two forward operating posts in the Chiriqui province, and other operational expenses for the SMN small boat unit. Once the SMN and the SAN merge to create a Coast Guard, the NAS would also provide training to pilots and aircrew to operate a new King Air medium lift aircraft that will be used for aerial surveillance and target detection.

Joint Intelligence Coordination Center (JICC): The NAS and the Ministry of Governance and Justice (MOGJ) will support a Joint Intelligence Coordination Center (JICC) equipped with a digital database to facilitate information sharing to all law enforcement agencies. The JICC is a multi-agency intelligence information center. It is manned by members of all public forces and the PTJ. It has direct access to over 25 databases that house information that the JICC can access for investigative purposes on request. The JICC is also capable of providing database consults to U.S. law enforcement agencies such as DEA and DHS.

Program Development & Support (PD&S)

PD&S funds will be used to pay salaries, benefits, and allowances for U.S. and foreign national direct hire and contract personnel, field travel, and International Cooperative Administrative Support Service (ICASS) costs, and general administrative and operating expenses for program planning, design, implementation, monitoring, and evaluation.

Panama
INL Budget
($000)

FY 2006 FY 2006
Supp
FY 2007 FY 2007
Supp
FY 2008
Interdiction/Border Control
National Police 650 - 635 - 200
National Air Service 250 - 150 - -
Border Enhancement 400 - 300 - 100
National Maritime Service 650 - 560 - 200
Joint Intelligence Coordination
Center (JICC) - - 75 - 100
Panamian Customs Service 300 - - - -
Sub-Total 2,250 - 1,720 - 600
Law Enforcement Restructuring
Technical Judicial Police 500 - 425 - -
Law Enforcement Modernization 375 - 300 - -
Sub-Total 875 - 725 - -
Financial Investigations Unit 150 - 150 - -
Anti-Corruption Initiatives* 350 - 300 - -
Drug Awareness/Demand Reduction 75 - 50 - -
Justice Systems** - - 300 - -
Program Development and Support
U.S. Personnel 303 - 347 - 200
Non-U.S. Personnel 45 - 45 - 30
ICASS Costs 310 - 242 - 150
Program Support 97 - 121 - 20
Sub-Total 755 - 755 - 400
Total 4,455 - 4,000 - 1,000
* INL will transfer a portion of these funds to USAID who will administer a few projects in this area in FY 2007
** This is an INL funded and USAID administered program in FY 2007

Peru

Budget Summary ($000)

FY 2006 Actual

FY 2007 Estimate

FY 2008 Request

106,920

103,165

36,844

*FY 2008 is the first year that funding for Alternative Development (AD) and Administration of Justice (AOJ) is not included in the ACI Account. AD and AOJ funding will fall under the ESF Account from FY 2008 onward, which for FY08 totals $30 million

Program Objectives and Performance Indicators

The Government of Peru (GOP) institutionalizes policy-making and coordination and begins to take over management of certain counternarcotics programs. Indicators include:

The maintenance and operation of Peruvian National Police (PNP) air wing is performed 100 percent by Peruvian nationals. USG contractor provides oversight on maintenance, training, and operations of equipment and helicopters.

Improved coordination and capabilities of Peruvian agencies involved in counternarcotics law enforcement lead to more effective action against illicit drug trafficking.

Increase the Peruvian National Counternarcotics anti-drug police (DIRANDRO) to over 2800 personnel to spread DIRANDRO's presence and ability to enforce law and deny freedom of action for narcotics trafficking activities.

Maintain a comprehensive maritime and port interdiction program to diminish substantially the exploitation of Peru's northern ports by narco-traffickers through increased seizures and number of Manifest Review Units established.

Improvements in the efficiency of the Peruvian judicial sector allow it to effectively prosecute drug cases.

Continuing USG support for special narcotics prosecutors and support for judicial personnel in regions with heavy narcotics caseloads results in an increase in the number of arrests/prosecutions of major criminals and narco-traffickers and a decrease in pre-trial detention time.

The illegal cultivation of coca and opium poppy is reduced and eventually Peru becomes a marginal rather than major source of illicit drugs and drug trafficking.

Programmed and voluntary eradication will eliminate 13,000 hectares of illicit coca in CY 2007.

The GOP establishes a reliable tracking system of the production of traditional licit coca.

The GOP, with the help of the USG, develops a reconnaissance capability to identify and eradicate 150 hectares of opium poppy cultivations.

The number of port and road counternarcotics interdiction checkpoints east of the Peruvian Andes is increased by ten percent in 2007, resulting in a ten percent increase in the number and amount of cocaine seizures over previous years.

An increased awareness of the dangers of drug trafficking and drug abuse increases public support for counternarcotics policies and leads to a reduction in the demand for illicit drugs.

Peru generates statistical data on public concerns about drug abuse and related criminal activity. The data is used to design, implement, and evaluate public awareness campaigns.

Public support and GOP political will for law enforcement efforts against illegal drug cultivation and trafficking are realized and maintained at high levels.

Both survey results and GOP actions indicate that Peruvians will no longer tolerate illegal drug cultivation and trafficking leading to a larger percentage of the Peruvian population recognizing coca cultivation and narco-trafficking as a threat to national wellbeing.

Increase in the number of prevention and training activities undertaken by grant recipients.

Transformational Diplomacy

U.S. assistance will serve to strengthen governance in isolated areas where drug traffickers and terrorists operate, use aggressive eradication, interdiction and chemical control to reduce drug production, provide alternative development that reduces dependence on illicit coca cultivation, help the government improve its counter-terrorism efforts and publicize the links between drug production and common crime so that Peruvians understand that their quality of life (and not just that of Americans) is degraded by drug-trafficking. This is the most resource-intensive objective because it requires high-priced equipment like helicopters and labor-intensive manual eradication. The Nethercutt Amendment prohibits Peru from receiving military assistance since it has not signed an Article 98 agreement. No other country provides any significant financial assistance in promoting this Peace and Security objective.

Program Justification

Peru is the second largest cocaine producing country in the world and a major exporter of cocaine and cocaine base to markets in South America, Mexico, the United States, and Europe. The price, cultivation, and yield of coca are on the increase in Peru; 38,000 hectares of coca were estimated by CNC to be under cultivation at the end of 2005; an increase of 38 percent, despite the record programmed and voluntary eradication of 12,688 hectares. This equates to 34 metric tons of cocaine kept from production. It is estimated that these cultivation levels produce a potential annual harvest of approximately 110,000 metric tons of coca leaf. According to the Peruvian Institute of Statistics and Information (INEI), approximately 4 million Peruvians use up to 9,000 metric tons of coca leaf for legal purposes each year, leaving approximately 100,000 metric tons of coca leaf available to produce an estimated 190 metric tons of cocaine HCl annually. A relatively small percentage of Peruvians are involved in growing coca, processing coca leaf and trafficking cocaine and cocaine base. Despite these obstacles, the Peruvian Government has made significant progress in strengthening policy capacity and in addressing maritime smuggling of cocaine shipments, both key to long term success.

Program Accomplishments

After a decade of impressive reductions of coca cultivation, the price for Peruvian coca leaf has hit 12-year highs, creating a strong economic incentive for greater production. The GOP conducted operations on land, sea, and air to disrupt the production and transshipment of cocaine. Peruvian law enforcement authorities seized 14.10 metric tons of cocaine HCl and 4.09 metric tons of cocaine base in these CY 2006 operations. The price of coca leaf continues to rise steadily, except in areas of rolling interdiction, and the number of hectares under cultivation as well as the densities of the plants in each plot have grown in areas not under GOP control.

The Crime and Narcotics Center (CNC) estimate for 2005 is 38,000 hectares of coca, a 38 percent increase from the 27,500 hectares of coca it measured in 2004 in key regions including the Monzon Valley and Ene-Apurimac River Valleys (VRAE). Expansion of coca is probably related to the sustained high prices for coca and the perception of impunity fostered by initial government reluctance to confront growers. Despite this increase, the Ministry of Interior's coca eradication group (CORAH) eradicated 12,688 hectares in 2006 (10,137 programmed, 2,551 voluntary).

Aside from its eradication efforts, NAS support has assisted the GOP in successfully accomplishing a number of strategic drug control goals. In 2006, Peru made significant progress in strengthening police capacity east of the Andes with 750 new police officers dedicated to counternarcotics law enforcement, including 150 women, reinforcing the 400 police who graduated in 2005. Their entry on duty has allowed the PNP to effect sustained interdiction in source zones and to carry out eradication in valleys where coca farmers have violently resisted programmed eradication in the past.

The GOP has also made progress in addressing and improving maritime smuggling of cocaine shipments, which is becoming the primary method of exporting multi-ton loads of cocaine. New container x-ray scanners were installed and are operational in the ports of Callao and Paita. Peruvian Customs nearly achieved their self-imposed staffing obligations for 24/7 operations in Callao and 16/7 operations in Paita. This, coupled with the export control system enacted by Peruvian Customs, brings export control security in Peru to an all time high. As a result, the Ports Program seized 2.1 metric tons of cocaine HCl in CY 2006, more than double the amount seized last year.

There has been a remarkable push by non-governmental organizations, universities and the mass media to heighten the Peruvian public's concern about the extent of influence of narco-trafficking and the influence of narco-trafficking over coca grower organizations. Many Peruvians have lost their sympathy for "oppressed" coca farmers, and there is widespread recognition of the link between coca leaf cultivation and drug consumption.

In FY 2006, over 30 money-laundering cases researched by the GOP's Financial Intelligence Unit have been forwarded to the national prosecutor's office. In 2005, the public prosecutor won two money laundering convictions.

FY 2008 Program

Narcotics Law Enforcement

Law Enforcement Support: As in the past, interdiction operations will be conducted by air, on land, in seaports and on rivers. The use of dogs in operations has been successfully introduced. The major change in the FY 2008 police program will be the requirement to support a much-enlarged presence of the Peruvian National Police anti-drug police (DIRANDRO) in the coca growing valleys. The NAS police project will also support continued intensive training efforts at three police basic training academies, a rapid expansion of a K-9 program and new task forces that link the DIRANDRO units with regional police units (DIVANDRO) in the coca-growing valleys. This will further extend the reach of interdiction efforts in the major coca growing valleys. This will also enhance the capabilities of DIRANDRO to provide stability and security in the drug source zones, conduct advanced road interdiction and interdiction in hard-core areas. The increased workforce will enable DIRANDRO to extend its counter-drug efforts to cover areas of expansion as well as traditional growing areas.

A new project in FY 2008 is designed to establish regional task forces so that DIRANDRO troops can gain the operational support of the regional police to promote interaction between the DIRANDRO and the regional counter-drug police. Additionally, DIRANDRO will have enlarged its special operations groups sufficiently to be able to carry out continuous campaigns that encircle drug production zones, destroy cocaine laboratories, and choke the flow of chemicals in and drugs out of those zones.

Aviation Support: Aviation support is essential to interdiction and eradication. Since 1988 NAS Aviation has furnished support for counternarcotics efforts in Peru. A complementary goal is to prepare the PNP Aviation (DIRAVPOL) to take over the aviation program. With this aim in mind, FY 2008 will continue heavy investment of funds in training and career development of PNP aviation personnel in addition to budgeting for increased flight hours due to the presence of the 23 UH-2s fleet.

In FY 2008, with the dramatic increase of counternarcotics police personnel to 2800, a significant increase in aviation resources will be required to transport these personnel to support expanded drug interdiction and eradication efforts. Funding is required to cover fuel, maintenance, hangars and warehousing, aircraft rental when needed, and operational support for DIRAVPOL personnel.

Port Security Support: FY 2008 funding will focus on maintaining Peru's ability to effectively detect drugs smuggled through its commercial and fishing ports through technical assistance, training, and the provision of detection equipment. In FY 2008 emphasis will be placed on helping Peruvian law enforcement authorities, Customs, port authorities and shippers create secure cargo and container controls, and developing closer GOP interagency cooperation to inspect suspect container in Peru's main seaport, Callao, and in other ports used by narco-traffickers.

Eradication

Coca and Opium Poppy Eradication: The FY 2008 budget will support eradication efforts by the GOP's Coca Monitoring and Reduction Agency (CORAH) in entrenched coca growing areas and areas of expansion as well as continue to monitor new coca. Police eradication targets the nearly inaccessible opium poppy cultivation areas. INL supports all CORAH operations while continuing to develop Peruvian capacity for institutional management, operations, and strategic planning. Funding covers these expenses in addition to the construction and maintenance support for offices, field camps, facilities, communication equipment, and civic action programs used by CORAH.

New equipment will allow CORAH communications specialists to work closely with the GOP and USG communications experts to inform Peruvians in the growing areas about the reasons for coca reduction and the dangers posed by the narcotics industry to individuals, families, and communities.

Support to the Armed Forces: The USG and the GOP are currently working to improve the capacity of the Peruvian military and police to affect air, ground, seaport, and river end games based upon actionable intelligence.

Crop Monitoring and Research: A branch of CORAH called CADA (Corps for Assistance to Alternative Development) monitors and maps coca and poppy cultivation, estimates cultivation for voluntary eradication programs and verifies that fields are actually uprooted. CADA will continue to map coca and poppy cultivation. It will also map opium poppy fields and work with police to detect cultivation patterns; generate geographic information that supports counternarcotics projects; and provide ground-truthing for the CNC.

In addition, a joint USG/OAS/CICAD Alternative Crop Research and Extension Project complements the bilateral alternative development program. This project will continue to perform field research into coffee and cacao diseases, with a focus on finding ways to increase production yields in alternative development areas and developing international markets. The Institute for Tropical Crops (ICT) helps former coca growers develop licit crops, conducts research for the USDA, and collaborates with USAID, the Andean Countries Cocoa Export Support Opportunity (ACESSO) project, and other development efforts.

Administration of Justice

Narcotics Prosecution: In FY 2008, funding will continue to support regional senior GOP prosecutors assigned to oversee police and military drug enforcement operations, interrogate suspects and witnesses, secure evidence, supervise the destruction of illegal facilities such as laboratories or airstrips, and prepare cases for trial. Prosecutors are also needed to accompany eradication when eradicators uncover pozas, chemicals, and cocaine producing paraphernalia. Prosecutors verify that rights are not being violated and to defuse protests. With expansion of interdiction and eradication, more prosecutors are needed in the field. Funds will provide selected jurisdictions with enhanced communications and field equipment and improved facilities.

Drug Awareness

Public Relations and Media Engagement: As the result of several years of engagement in public information, there has been a change in attitude among Peruvians about coca. They now recognize the link to drug production, corruption, and crime. A new project in FY 2008 will be the development of a training center for drug prevention agents. The project, "Seeding Awareness" aims to educate over 200,000 students and members of civic groups in drug prevention techniques so they can educate others. Additionally in FY 2008, NAS proposes supporting a major advertising and communications campaign by the NGO, Alliance for a Drug-Free Peru, to reach the farmers in coca-growing valleys.

Program Development & Support (PD&S)

PD&S funds will be used to pay salaries, benefits, and allowances for U.S. and foreign national direct hire and contract personnel, field travel, International Cooperative Administrative Support Service (ICASS) costs, and general administrative and operating expenses for program planning, design, implementation, monitoring, and evaluation.

Peru
INL Budget
($000)

FY 2006 FY 2006
Supp
FY 2007 FY 2007
Supp
FY 2008
Eradication
Coca and Opium Poppy Eradication 9,200 8,000 8,000
Crop Research and Extension (ICT) 900 700 500
Aviation Support 17,000 22,300 4,699
Crop Monitoring and Research 1,600 1,500 1,000
Sub-Total 28,700 32,500 14,199
Interdiction
Law Enforcement Support 16,000 10,000 7,500
Port Security Program 2,000 2,450 2,050
Peruvian Customs 3,000 3,500 2,000
Public Relations and Media 600 750 500
Administration of Justice/Prosecution 400 500 200
Support to Armed Forces 500 500 -
Chemical Control 1,000 - -
Institutional Development 260 - -
Aviation Support - - 6,595
Sub-Total 23,760 17,700 18,845
Demand Reduction 1,500 1,400 -
Money Laundering 450 400 -
Program, Development & Support
U.S. Personnel 726 758 585
LES 1,212 1,220 1,244
ICASS Costs 895 925 955
Program Support 1,167 1,097 1,016
Sub-Total 4,000 4,000 3,800
NAS Sub-Total 58,410 56,000 36,844
Alternative Development (USAID)
Alternative Livelihood 46,582 47,165 -*
Program Support 1,928 - -*
AID Sub-Total 48,510 47,165 -*
Counternarcotics Total 106,920 103,165 36,844
* Alternative Development now managed under Economic Support Funds (ESF)



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