Europe and Central Asia

Albania

I. Summary

Drug trafficking remains a significant issue for Albania. Organized crime uses Albania as a transit point for drug smuggling due to its strategic location, weak police and judicial systems, and lax border controls. The most common illegal drugs are heroin, cocaine and marijuana. Heroin is typically routed through the "Balkans Route" of Turkey-Bulgaria-Macedonia-Albania, and on to Italy and Greece. Although Albania is not a major transit country for drugs coming into the United States, it remains a country of concern to the U.S. Drug abuse is a growing problem, but remains on a small scale compared with Western Europe. Statistics continue to be unreliable on drug trafficking or use, and the public is generally unaware of the problems associated with drugs.

The Government of Albania (GOA), largely in response to international pressure and assistance, has been confronting criminal elements more aggressively. This continues to be an uphill battle because of lack of resources and corruption in Albania. The government established an antidrug unit in 1998 under the Ministry of Public Order and, in 1999, drafted legislation calling for national coordination to combat drugs and improve investigations of drug-related crimes. Albania is not a party to the UN Drug Convention.

The government is continuing its efforts to build security and stability throughout Albania. Police professionalism has increased, especially among units that defend public order. The judiciary is engaged in improving the legal system with technical assistance from the U.S. Department of State and U.S. Justice Department, though it remains weak and subject to corruption. The current government of Prime Minister Ilir Meta has been in power since October 1999, and has begun to implement commitments to crack down on organized crime. The Albanian military and police work closely with the Italian police and coastal patrol organizations to shut down smuggling runs of illegal immigrants, drugs and other contraband across the Adriatic to Italy. In November 2000, the government mounted an antitrafficking initiative, Operation Eagle, that increased cooperation with these organizations, particularly in the port city of Vlore, a known trafficking center in drugs, illegal migrants, weapons and other contraband.

Plagued by severe unemployment, crime, and lack of infrastructure, the Albanian public focuses little public attention or debate on the problem of drug abuse. There are no independent organizations that compile data on drug use in Albania, nor are significant government assets dedicated to tracking the problem. But Albania is experiencing an upsurge in drug abuse by younger Albanians. Heroin and marijuana are abused; cocaine is also available, but is expensive, and this fact restricts its use. Heroin is imported from the Former Yugoslav Republic of Macedonia, but originates in Afghanistan; marijuana is produced domestically. Local addicts also use a powerful synthetic morphine called pethidine. The limited press and media coverage on the subject speculates that drug use, especially among adolescents in cities, is on the rise. There are no special treatment centers for drug addicts.

Policy Initiatives. In 1998, the Ministry of Public Order opened an antidrug unit, which remains understaffed and lacking basic equipment. In 1999, the government drafted two laws that derive partially from the 1998 UN Drug Convention. These laws call for national coordination of policies regarding use and trafficking of narcotics as well as establishing a framework to improve criminal investigations in drug-related cases. As of December 2000, no date was set for parliament to consider these drafts. The government is also taking an active role with its Balkan neighbors bilaterally and in regional initiatives to combat organized crime. Albania is a participant in the Stability Pact and the Southeast European Cooperation Initiative (SECI).

Accomplishments. Although antidrug authorities do not have the capacity to determine crop sizes and yields, they estimate that police destroyed more than 256,000 marijuana plants in the first 11 months of 2000, believed to be more than 50 percent of the total harvest.

Law Enforcement Efforts. Authorities report that in 2000, police arrested 640 persons for drug trafficking, four of them foreign citizens (one American, two Turks, and one Greek). The police seized 23.5 kilograms of heroin, 28 kilograms of cocaine, and over two liters of hashish oil. Asset seizure was legalized as an anti-smuggling weapon in 1998, when legislation was passed that allows for the seizure and sale of boats used for smuggling. In August 2000, Parliament passed a new Anti-Speedboat law that enables police to seize speedboats used in illegal trafficking, including drugs, not only at sea, as was the case in the past, but on land as well.

Illicit Cultivation and Production. With the exception of cannabis, Albania is not known as a major producer of illicit drugs. According to authorities of the Ministry of Public Order’s antidrug unit, in 2000, cannabis is the only drug grown and produced in Albania, and is typically for consumption or sale in Belgium, France, Germany, Greece, and Italy. Metric ton quantities of Albanian marijuana have been seized in Greece and Italy. The Ministry of Public Order reported that police forces destroyed cannabis plants in 41 villages, mostly in southern Albania. The ministry also reported a new trend(s): the growing of red poppies and cannabis in Northern Albania.

Precursor Chemical Control. Albania is not a producer of significant qualities of precursor chemicals. Albanian law does not address precursor chemicals.

Distribution. Corruption among police and magistrates hampers efforts to crack down on drug distribution, though distribution is less of a problem than transit of illegal narcotics for international trafficking. However, police efforts to combat distribution may be increasingly effective since the government now has greater authority over areas previously out of their control.

Sale, Transport, and Financing. Organized crime plays a significant role in drug trafficking, including the facilitation of sales, financial arrangements, and smuggling. The government, in cooperation with Italian authorities, has made some progress in interdicting narcotics smugglers at sea.

Drug flow/Transit. Heroin and cocaine are the main drugs that transit Albania. Authorities report that heroin typically follows through the "Balkan Route," while traffickers ship cocaine by air from the U.S. and Latin America, with a stop in Albania, and then on to Western Europe.

Agreements and Treaties. The United States has an extradition treaty with Albania that entered into force on November 13, 1935. As stated earlier, Albania is not a party to any of the UN Drug Conventions. Albania signed the U.N Convention Against Transnational Organized Crime and its Protocols in December, 2000.

Demand Reduction. Drug abuse is a comparatively new problem in Albania and the government and Albanian society have been slow to address it. Local and national authorities do not believe the problem is particularly widespread, owing both to traditional cultural norms and low levels of discretionary income.

Corruption. Corruption remains a deeply entrenched problem. Low salaries and social acceptance of graft make it difficult to combat corruption among police, magistrates, and border officials. In 2000, the Ministry of Public Order established an Anti-Organized Crime directorate with technical assistance provided by the U.S. Department of Justice’s ICITAP and OPDAT with funding by the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL).

Bilateral and Multilateral Cooperation. The GOA continues to welcome assistance from the United States and Western Europe. The U.S. is intensifying its activities in the areas of public order and legal reform with expanded programming and additional staff members at the U.S. mission in Tirana. Additional U.S. advisors will work with the Ministry of Public Order to support efforts to fight organized crime and trafficking in 2001. Other USG, EU, and international programs include support for Albanian customs reform and enhanced border controls, continued judicial training, efforts to improve cooperation between police and prosecutors, and anticorruption programs. The U.S. continues to offer Department of Justice/ICITAP police training programs and OPDAT training and technical assistance for prosecutors.

The Road Ahead. The U.S. will continue to push the Albanian government to encourage progress on illegal drug trafficking and use law enforcement assistance efficiently, and support legal reform. The U.S. assistance will increase in 2001 to provide additional guidance and training to law enforcement and judiciary bodies, including the planned posting of two additional ICITAP experts to help establish the Ministry of Public Order's Organized Crime Unit. EU and international efforts will provide the GOA with additional support.

Armenia

I. Summary

Armenia is not a major drug producing country, and domestic consumption is relatively small. The Government of Armenia (GOAM), however, recognizing its potential as a transit route for international narcotics shipments, is working to improve its interdiction ability. The Armenian parliament is presently considering legislation, which would strengthen the Interior Ministry's mandate to combat drug trafficking. Because of limited government resources, however, counternarcotics programs emphasize prevention with little funding for treatment. Armenia is a party to the 1988 UN Drug Convention. It is expected that in January or February 2001 Armenia will sign an Agreement on Collaboration of Member States of the Commonwealth of Independent States in Combating Illegal Trafficking of Narcotic, Psychotropic and Precursor Substances.

Because of its geographical position, Armenia has the potential to become a significant transit point for international drug trafficking. Armenia is presently a secondary trafficking route for drugs because of limited transport between it and neighboring countries. However, according to the Ministry of Interior, transit through Armenia is increasing. The Interior Ministry estimates that 75 percent of all opiates in Armenia are being smuggled from Iran, constituting about 50 percent of all narcotics smuggled into Armenia. Armenia's borders with Azerbaijan and Turkey remain closed due to the Nagorno-Karabakh conflict, but when these borders open, drug transiting could increase significantly. The GOAM's immediate concern is to prepare its law enforcement capabilities for this situation.

Drug abuse is not a serious problem in Armenia. The local market for narcotics, according to the Interior Ministry, is not large and the main drugs of choice are opium and cannabis. Heroin first appeared in the Armenian drug market in 1996 and since then there has been a small upward trend in heroin sales.

The number of substance abusers has been on the rise over the past three years. The average age of users has gone from 35 to 25 in recent years. The Ministry of Interior has reported an increase in drug use among 15 to 17 year olds, which may be explained in part by increased use of narcotics in cafes and nightclubs and a rise in prostitution. The rising number of persons who have tested HIV positive, generally associated with drug use, has also become a concern. It is estimated that the number of drug abusers in Armenia exceeds 10,000, of that number 50 percent report consuming opiates. The average cost of treatment for one drug addict to the state is USD250.

Policy Initiatives. The newly drafted General Section of the Criminal Code has passed all three parliamentary readings and it is currently waiting Presidential approval. This section includes a draft law on narcotic drugs, prepared by the Interior Ministry, pertaining specifically to psychotropic substances and includes provisions that would give the Ministry a clear mandate as the lead agency for combating drug trafficking. The Interior Ministry has also drafted a decree for the establishment of a joint committee to update the classification of drugs and to introduce stricter control over licit production, sale, and distribution of pharmaceutical drugs of a psychotropic nature.

Accomplishments. According to both the Ministry of Interior and the Office of the Prosecutor General (OPG), during the first nine months of 2000, there have been 789 incidents of crime associated with illegal trafficking in drugs registered, compared with 1062 for the same period of the previous year. This constitutes a decrease by 273 incidents or 25.7 percent. To date according to the OPG, 54.0kg of narcotic substances have been confiscated, against 43.1kg for the same period last year. The OPG explains this trend as a result of a more active approach to uncovering criminals involved in the sale of narcotics.

According to the Office of the Prosecutor General domestic production, such as wild hemp, is grown primarily in the Provinces of Ararat and Gegharkunik, and to a lesser extent in the Provinces of Armavir, Lori, and Syunik. Importation of drugs to Armenia originates mainly from Russia, Iran and Turkey for Heroin; Russia, Iran, Ukraine and Asian Countries for Opiates; and Iran for Marijuana. Motor vehicles are the main mode of transportation, though other means such as planes are used as well.

Law Enforcement Efforts. In 1999, the Interior Ministry began to deploy joint teams of Armenian police and customs representatives at each customs post and checkpoint. The Ministry obtained fifteen drug-sniffer dogs from Western Europe for this purpose. Based on the Embassy’s periodic review, initially the canine program was deemed a success, but training of the dogs has not been adequately maintained and they are not exercised on a regular basis, resulting in less effective skills of the dogs in the program.

Corruption. There were no cases reported of government officials being involved in drug-related corruption in 2000. However, corruption remains endemic in Armenia.

Agreements and Treaties. Armenia is a party to the 1988 UN Drug Convention, the 1961 UN Single Convention as amended by the 1972 Protocol, and the 1971 Convention on Psychotropic Substances. Armenia is a signatory to the 1992 Kiev and 1996 Dushanbe narcotics control assistance agreements of the NIS countries. In 1999, Armenia, Georgia, and Iran signed a trilateral agreement on cooperation to combat drug trafficking. Armenia has also signed bilateral agreements on cooperation against illicit traffic in narcotics and psychotropic substances with the Customs Service of Turkmenistan, Customs Committee of Georgia, and the Customs Committee of Tajikistan. The OPG expects that in January/February 2001 Armenia will sign an Agreement on Collaboration of Member States of the Commonwealth of Independent States in Combating Illegal Trafficking of Narcotic, Psychotropic and Precursor Substances.

Cultivation and Production. Cannabis (hemp) and opium poppy grow wild in northern areas of Armenia, particularly in the Lake Sevan basin and in some mountainous areas. No illicit laboratories producing synthetic drugs were discovered in Armenia in 2000.

Drug Flow/Transit. Transit of illegal drugs is recognized as the most serious concern for the GOAM, however, no estimates of the total amount of drugs transported through Armenia are available. The main drug routes run from Iran, to Russia and Ukraine and almost all heroin brought to Armenia originates from those countries.

Demand Reduction. Drug abuse is one of the most serious concerns of health authorities, due to poor financing, a lack of communication with remote rural areas, and a lack of interest in "preventative actions" on the part of local NGOs.

Bilateral Cooperation. Cooperation was established between the U.S. and Armenian law enforcement agencies in a number of areas. Armenian officials have participated in U.S.-funded training sessions both in Armenia and at the International Law Enforcement Academy (ILEA) in Budapest, Hungary. Armenian police officers and border guards have attended training on investigative techniques, forensic techniques, crisis management, domestic violence, and internal controls. Members of the legal sector have attended training on drafting legislation, prosecutorial functions, judicial reform, and public corruption. The Armenians have teamed up with U.S. advisors to work on launching a program that will combats money laundering and economic crimes for Armenian law enforcement officers and judges.

The Road Ahead. The U.S.G. will continue working with the Armenian government to improve training of both their law enforcement and rule of law sectors. There are plans to provide much needed equipment that will enhance training in every area of concern. The Armenian government has agreed to continue its cooperation with neighboring countries in a regional effort to control drug trafficking through the Caucasus.

Austria

I. Summary

Throughout 2000, Austria remained primarily a transit country for drug trafficking from the Balkans to Western European markets. Organized drug trafficking is carried out largely by non-Austrian criminal groups. Austrian authorities have expressed concern over the continued rise of organized crime, which they attribute predominantly to Mafia-type gangs from Russia and other former East Bloc countries. Production or cultivation of illegal substances in Austria remains insignificant. The law enforcement community believes the expanded investigative tools, contained in several recently passed laws, give them the means to fight organized crime. Austria made combating narcotrafficking a priority during its OSCE chairmanship in 2000. Cooperation with U.S. authorities is excellent. Austria has been a party to the 1971 and 1988 UN drug conventions since 1997.

Production of illicit drugs in Austria continues to be marginal, but Austria remains a transit country for drugs that organized crime syndicates transport along the major European drug routes. Seizures of heroin rose to 200 kilograms by November 2000 from 118.213 kilograms in 1999. Seizures of MDMA ("ecstasy") also rose significantly in 2000. The number of drug-related deaths rose to 215 in 2000 from 174 in 1999. Unofficial estimates place drug-related crime at about 30 percent of all offenses. Most organized drug crime can be traced back to perpetrators in the NIS (Newly Independent States). Austria heeded a European court decision and abolished anonymous passbook savings accounts in 2000, further hindering money-laundering possibilities. This move also halted a related Financial Action Task Force (FATF) initiative to suspend Austria's membership for noncompliance. Complementary legal measures in 2000 served to close remaining loopholes for unmonitored transactions.

Policy Initiatives. The new center-right coalition government (OVP/FPO), installed in February 2000, has sought minor changes in Austria's liberal drug policies. Its policy objectives include measures to reduce the decreed "limit quantities" (e.g. 20 grams for cannabis THC), over which drug use becomes a crime. One part of the government has called for increases of the existing range of punishments for drug dealers. Drug experts have termed these steps a move toward a more "repressive" drug policy, while the opposition Social Democrats and Greens continue to favor total decriminalization of cannabis. The Government of Austria's strategy at the same time includes a commitment to intensify drug prevention education. Existing legislation, last overhauled in the 1998 Narcotic Substances Act, focuses on therapy for drug users and foresees severe penalties for drug dealers. While drug dealers may face up to 20 years in prison, first-time users of cannabis may avoid criminal proceedings if they agree to therapy.

Austrian investigators maintain that a 1998 law directed against organized crime, which allows technical surveillance of persons "strongly suspected" of having committed "crimes punishable up to 10 years," has helped them arrest a large number of drug dealers since its passage. A related investigative tool, the "Police Powers Law," was amended in 2000 by the new government. It authorizes investigators to collect and analyze information about likely extremist/terrorist groups without judicial approval and prior to the establishment of "substantiated suspicion."

Accomplishments. With the help of new legal tools and the support of the DEA Office at the U.S. Embassy in Vienna, police seized 104 kilograms of heroin at Vienna's Schwechat Airport in June 2000. This and most other drugs seized in Austria in 2000 entered Austria by way of the Balkan route. In May 2000, authorities seized 1,170 kilograms of cannabis at the border crossing from Slovenia. Authorities believe the absence of major cocaine seizures at Vienna's Airport, a traditional cocaine transit port, could be attributed to a redirection of drug-smuggling routes. In the fall of 2000, Austrian authorities arrested members of an Austrian-Polish drug ring, whom they accused of producing and selling illicit drugs (including 120,000 ecstasy tablets) worth $670 million. In December 2000, Austrian authorities destroyed a drug-ring in the state of Styria, arresting 16 suspected drug dealers. Also in December 2000, Austrian authorities, in cooperation with the DEA, seized 10.5 kilograms of heroin from a Polish, Russian, and German drug ring. Overall, authorities estimate that one out of two criminal offenses in Austria is drug-related.

In 1999, authorities registered 17,597 cases of domestic drug-related criminal offenses, compared to 16,624 for the previous year; 2000 figures are not yet available. (Fifteen cases involved U.S. citizens). No major changes in these figures are expected for 2000. According to a 1998 study, the country spent about $135 million annually (i.e., 0.27 percent of total budget outlays that year) to combat illegal drugs. Two-thirds of this amount went into law enforcement efforts.

International Policy. As chair of the OSCE in 2000, Austria worked diligently to make the fight against drug trafficking one of the priorities of its term. During its term as OSCE Chief, Austria sponsored an antidrug summit in Tashkent/Uzbekistan in October 2000. Austria continues to cooperate within EU fora, to prioritize social and health policy measures and to urge inclusion of NGOs at the planning stages of the EU's antidrug strategy plans. Overall, Austrian authorities routinely stress the need for increased international cooperation in view of the growing internationalization of the drug trafficking cartels. The central narcotics bureau participated in a reciprocal exchange program for improving investigative procedures with officials in Slovakia, FYROM (Former Yugoslav Republic of Macedonia), and Slovenia.

Austria has legislation allowing freezing and forfeiture of assets. Criminal courts are responsible for tracing and seizing assets. Austria has not enacted laws for sharing seized narcotics assets with other governments; however, mutual legal assistance treaties can be used as an alternative vehicle to accomplish equitable distribution of forfeited assets. In the first 11 months of 2000, $10.7 million were frozen, of which $7.7 million were due to one case.

Law Enforcement Efforts. As of November 1, 2000, law enforcement authorities had registered a marked rise in heroin seizures (200 kilograms by the end of November 2000) and a notable drop of cocaine seizures at Vienna's Schwechat Airport. In 1999, authorities seized 99.140 kilograms of cocaine, an increase from the 62.377 kilograms seized in 1998. Of all drug offenses in 1999, 386 were related to illegal possession of psychotropic substances, mainly in the form of controlled substance medications. No offenses were registered in 1999 regarding precursor materials. The overall number of illicit drug abusers is believed to have remained stable, although no exact figures exist. In 2000, as in previous years, there were approximately 15,000 to 20,000 drug users in Austria. By October 2000 authorities had registered 215 cases of suspected drug-related deaths, an increase over the 174 drug-related deaths reported in 1999.

Corruption. Austria ratified the OECD Antibribery Convention in 1999. The GOA's public corruption laws recognize and punish the abuse of power by a public official. Austria has eliminated tax deductibility of bribes and any gray market payments. There are no cases pending at the moment which involve any bribery of foreign public officials. According to a December 2000 Interior Ministry report, use of corruption by NIS-based organized crime gangs constitutes a rising threat. In reaction, Austrian authorities have increased their efforts to prevent and fight corruption since 1999. For this purpose, an ad hoc panel was established in the Interior Ministry that is charged with designing counter strategies. The U.S. is not aware of any high-level Austrian government officials' involvement in drug-related corruption.

Agreements and Treaties. The U.S.-Austrian Mutual Legal Assistance Treaty, signed in 1995, was ratified by the Austrian Parliament in June 1998 and entered into force on August 1, 1998. An updated U.S.-Austrian extradition treaty became effective in January 2000. It replaced a 1930 extradition treaty with Austria and a 1934 supplementary extradition convention. The new treaty is a modern dual criminality treaty, i.e., it no longer lists specific extraditable offenses, but makes extraditable all criminal offenses that are prosecuted in both countries and carry a penalty of more than one year or a residual penalty of more than three months.

Vienna is the seat of UNDCP, and Austria is a "major donor" to the UNDCP. As in past years, it has pledged ATS 6.88 million ($460,000) each year for 2000 and 2001. In 1998, Austria became a full member of the Schengen process, to eliminate passport control and visas for internal travel among European member states. It has invested an equivalent of $250 million for Schengen-related measures since. Vienna is a co-sponsor of the "UN-Vienna Civil Society Award," a USD 100,000 prize given to individuals and organizations fighting drug abuse and organized crime. In 2000 the UN and Austria awarded the prize to organizations from Colombia, Chad, and Thailand, as well as to the late British drug expert Roger Lewis. On December 12, 2000, Austria signed the UN Transnational Organized Crime Convention and its protocols, and urged "swift ratification of the document by all signatory parties."

Cultivation. The U.S. is not aware of any significant cultivation or production of illicit drugs in Austria. Austria recorded no domestic cultivation of coca, opium, or cannabis in 1999.

Drug Flow/Transit. Most drugs enter Austria by way of the Balkan Route from Southwest Asia. The illicit trade is carried out mainly by Turkish groups, but also by Albanian traffickers based in southern Yugoslavia, followed by nationals of countries of the former Yugoslavia. The Slovak capital of Bratislava remained a temporary heroin depository for traffickers. Cocaine continues to be smuggled by couriers of South American drug cartels, to some extent also by African traffickers and, most recently, by Caribbean-based Austrian nationals. South American drug cartels increasingly use Central and Eastern European airports, including Austria's. Since 1999, Croatian cocaine traffickers with links to South American cartels have become more prominent in Austria.

Domestic Programs (Demand Reduction). Austrian authorities have traditionally viewed drug addiction as a disease rather than a crime, a fact reflected in rather liberal drug legislation last amended in 1998, and in related court decisions. Experts predict that legislative plans by the new center-right coalition will redress what some perceive as an excessively tolerant philosophy. Existing antidrug plans on the federal and state level pursue a "balanced, comprehensive and integrative" approach, with special emphasis on the prevention of social marginalization of drug addicts. Demand reduction puts emphasis on primary prevention, drug treatment and counseling, as well as "harm reduction," i.e., medically supervised availability of narcotics to recalcitrant abusers. The use of heroin for claimed therapeutic purposes is generally not allowed.

Drug education starts at the pre-school level. It extends to apprenticeship institutions and includes out-of-school youth programs. The government and local authorities routinely sponsor "educational campaigns" inside and outside school, e.g. mass media campaigns. Austria has syringe exchange programs for HIV prevention. New AIDS cases declined in 1999 and 2000, while the spread of Hepatitis B and C remains a relatively new challenge. There is a growing trend toward diversification in substitution treatment (methadone, prolonged action morphine, and buprenorphine), which has been in place for over a decade. The city of Vienna has been considering the use of cannabis for medical purposes, but has been unable so far to put a pertinent legal framework in place.

Bilateral Cooperation. Although Austria has no specific bilateral narcotics agreement with the U.S., Austrian cooperation with U.S. investigative efforts is excellent. U.S.-Austrian negotiations on the establishment of an Interior Ministry liaison office at the Austrian Embassy in Washington, D.C. continued in 2000. The office would handle bilateral issues involving all forms of crime, including illegal narcotics. In July 2000, the Austrian chief of narcotics participated in the "Club Drugs Conference," sponsored by the DEA, which discussed ways to combat synthetic drugs. In August 2000, Austrian Interior Minister Strasser discussed cooperation on law enforcement issues in Washington with officials from U.S. agencies, including the DEA, FBI, CIA, the State Department, and with U.S. Attorney General Janet Reno.

The Road Ahead. The U.S. will continue to support Austrian efforts to create more effective tools for law enforcement, as well as to work with Austria within the context of U.S.-EU initiatives, the UN and the OSCE, promoting among Austrian officials a better understanding of U.S. drug policy will remain a priority.

Azerbaijan

I. Summary

Azerbaijan is located along a drug transit route running from Afghanistan and Central Asia west into Western Europe, and from Iran north into Russia and west into Western Europe. Consumption and cultivation of narcotics are at low, but levels of use are increasing. During 2000, the main drugs seized were opium and cannabis. Section 907 of the Freedom Support Act has precluded the funding of U.S. counternarcotics assistance. Azerbaijan is a party to the 1988 UN Drug Convention.

Azerbaijan's main narcotics problem is the increased transit of drugs through its territory resulting from the disruption of the "Balkan route" due to regional ethnic conflicts in several countries of the former Yugoslavia. Narcotics from Afghanistan and South Asia enter from Iran or cross the Caspian Sea from Central Asia and continue on to markets in Russia and Europe. Azerbaijan shares a 700-km frontier with Iran, but its border control forces are insufficiently trained and equipped to patrol it effectively. Iranian and other traffickers are exploiting this situation. Domestic consumption is growing with over 13,500 persons registered in hospitals for drug abuse in Azerbaijan. The actual level of drug abuse is estimated to be many times higher. Government authorities suspect that persons displaced by the Nagorno-Karabakh conflict have been drawn into drug trafficking out of economic necessity. The Government of Azerbaijan (GOAJ) continues to claim that the Armenian occupied areas of Azerbaijan are used for drug cultivation. The GOAJ also maintains that narcotics are transported across the approximately 100 km of Azerbaijan's border with Iran that is under the control of Armenian/Nagorno-Karabakh forces.

Policy Initiatives. The "State Committee on Drug Control" headed by Deputy Prime Minister Ali Hasanov, continues to lead antinarcotics policy initiatives. This Committee is responsible for the implementation of the United Nations General Assembly resolutions relating to drug control. The Ministry of Internal Affairs has continued their program in the southern portion of the country, along the border with Iran, that organizes local counternarcotics police officials to work closely together across local jurisdictions.

Accomplishments. A new criminal code entered into force in September.

Law Enforcement Efforts. There were 2,061 drug-related arrests during the first ten months of 2000. Police lack basic equipment and have little experience in modern counternarcotics methods. Border control capabilities on the border with Iran and maritime border units are inadequate to prevent narcotics smuggling. This year customs officials seized and destroyed a large shipment of opium poppy seeds that originated in Afghanistan.

Corruption. Corruption permeates the public and private sectors. Government officials including the President and Prime Minister have remarked on the gravity of the problem. Current legislation has proven inadequate to address police and judicial corruption.

Agreements and Treaties. Azerbaijan has no narcotics-related agreements or treaties with the U.S. and no extradition agreement. Azerbaijan is a party to the 1988 UN Drug convention, the 1971 Convention on Psychotropic Substances, and the 1961 Single Convention. Azerbaijan signed the UN Convention Against Transnational Organized Crime and Accompanying Protocols in December, 2000.

Cultivation and Production. Cannabis and poppy were cultivated illegally, mostly in southern Azerbaijan. During the first ten months of 2000, law enforcement authorities discovered and destroyed about 388 tons of cannabis and about 45 kilograms of potential opium gum, which were under cultivation.

Drug Flow/Transit. Narcotics traffickers seem to rely on familiar transit routes. Opium and poppy straw originating in Afghanistan and South Asia transit through Azerbaijan from Iran, or from Central Asia across the Caspian Sea. Drugs are also smuggled through Azerbaijan to Russia, then on to Central and Western Europe. Azerbaijan cooperates with Black Sea and Caspian Sea states in tracking and interdicting narcotics shipments, especially morphine base and heroin. Caspian Sea cooperation includes efforts to interdict narcotics transported across the Caspian Sea by ferry. Law enforcement officials report they have received good cooperation from Russia, but have encountered considerable reluctance from Iran to assist in counternarcotics efforts.

Demand Reduction. Opium and cannabis products are the most commonly used drugs. The government of Azerbaijan has begun education initiatives directed at curbing domestic drug consumption.

Bilateral Cooperation. U.S. Law enforcement exchange of information with Azerbaijan has increased in 2000. Counternarcotics programs are severely limited because section 907 of the Freedom Support Act prohibits assistance to the Government of Azerbaijan. Three Azerbaijan government officials participated, at their own expense, in a regional U.S. training program in Georgia.

The Road Ahead. Without establishment of legal authority to allow the U.S. to provide counternarcotics assistance to the government of Azerbaijan, a key strategic partner in improving regional stability in the Caucasus, nothing more than piecemeal, bilateral cooperation between the two countries will be possible.

Belarus

I. Summary

Belarus’ economic, political, and geographical situation increases its potential of becoming a major drug transit and production site. Deteriorating economic conditions and a sharp drop in real wages continue to dislocate many workers. The sentiment that wealth can and should be acquired by any means possible is growing. The Belarusian government currently lacks both the legislative framework and the financial resources to combat drug trafficking.

Belarus’ location between Russia and the West, combined with its good rail and road transportation system, and a customs union with Russia that eliminated internal boarders between the two countries, add to Belarus’ potential as a narcotics transit corridor.

According to Ministry of Health data, the number of officially registered drug addicts totals 5000, with an estimated 700 to 800 new registrants per year. These numbers do not take into account non-registered addicts who are estimated to exceed these numbers by a factor of ten. Most addicts use products made of opium poppy, oil poppy or marijuana. However, synthetic drugs such as barbiturates, heroin, cocaine, and other drugs are being used in increasing quantities. There is a growing market for low-quality brown heroin.

Policy Initiatives. Belarusian President Lukashenko has taken steps to strengthen the state’s capacity to fight organized crime and drug trafficking. In Lukashenko’s presidential decree 21, of 1997, he directed the police to intensify their efforts to combating organized crime and their enterprises. There were no significant policy initiatives in 2000.

Accomplishments. In June 1995 an interagency commission for combating crimes and drug abuse was established. This commission is charged with coordinating the activities of various Belarusian agencies, as well as, state committees, public associations, and international organizations.

Law Enforcement Efforts. A considerable number of crimes recorded over the last two years are related to smuggling. These crimes included: stealing narcotic and addictive substances; organizing or maintaining drug dens for using drugs; and forging medical documents with the aim of procuring drugs. The Minsk office of the UN High Commission for Refugees has indicated that illegal immigrants in Belarus, attempting to travel to the west, often finance their trips through narcotics smuggling.

Responsibility for investigating and discovering narcotics- related crime is divided among the ministry of internal affairs, KGB, customs committee, border guards and ministry of health. Even with many agencies responsible for drug interdiction, resources are scarce and officers are spread thin because of other non-drug-related responsibilities.

Corruption. Belarus also faces many of the same organized crime problems that plague other countries of the Former Soviet Union. The absence of Belarusian laws on organized crime allows lead syndicates to use Belarus for not only drug production and trafficking, but also other drug related crimes such as money laundering.

Agreements and Treaties. Belarus is a party to the 1988 UN Drug Convention, the 1961 Single Convention and the 1971 UN Convention on Psychotropic Substances. Belarus is a member of INTERPOL, hosting a department of 12 persons dealing with issues of crime that transcend national borders. In addition, Belarus has joined regional efforts at law enforcement cooperation and has also signed bilateral agreements on cooperation against organized crime and drug trafficking, such as the 1993 on Drug Control Assistance Agreement with Italy and inter-state treaties with Lithuania and China. Currently, there are plans to sign similar agreements with Austria, Bulgaria, Sweden and Germany. Belarus signed the UN Convention Against Transnational Organized Crime and its accompanying Protocols in December, 2000.

Cultivation and Production. Opium poppy straw and marijuana are produced in Belarus mainly for domestic consumption. Belarus does not cultivate narcotics, but the country has major chemical production facilities and has all the resources necessary for the production of synthetic narcotics. The laboratory and technical capabilities are in place while much of the industrial plants are lying idle. There is no legislation or regulations dealing with precursor chemicals. Law enforcement is not trained in the detection of drug making facilities and does not have a ready list of indicators of clandestine production of synthetics. Unfortunately, control of precursor chemicals is not an issue that appears to be on the agenda of policy makers or even law enforcement officials, and the chemical industry is left to police itself. Since most precursor chemicals are highly regulated, Belarusian authorities believe that they do not have a serious problem.

Drug Flow/Transit. Belarus is growing in importance as a transit country. Good rail and road connections running east to west and north to south are used to transport narcotics from areas such as Ukraine, Central Asia, the Caucasus, and Russia to Western Europe. In addition, incidents of drug transportation destined for Poland and Germany have increased dramatically as a result of the customs union that eliminated internal borders between Belarus and Russia.

Demand Reduction. Belarus has not formulated a national drug abuse prevention strategy and only limited efforts are devoted to preventative and educational programs. Instead, the main emphasis is put on treatment and social rehabilitation of current drug addiction problems. Treatment for drug addicts is generally performed in psychiatric hospitals, either through arrest or self-enrollment. The emphasis of all Belarusian programs is to achieve detoxification and physical stabilization. Knowledge is lacking on how to further assist addicts with psychological counseling and social rehabilitation.

Bilateral Initiatives. Counternarcotics programs are prohibited by section 907 of the Freedom Support Act, which prohibits assistance to the Government of Belarus. This policy of selective engagement has resulted in the USG not providing support to GOB police agencies since February 1997.

The Road Ahead. Without legal authority to provide U.S. counternarcotics assistance to the government of Belarus, the U.S. is only able to engage in piecemeal humanitarian bilateral assistance.

Belgium

I. Summary

The Kingdom of Belgium has not been a significant producer of narcotics or precursor chemicals used in the production of illicit narcotics. However, police report that through November 2000, ten amphetamine or ecstasy labs have been seized compared to only four in all of 1999. Police also report a recent increase in cannabis cultivation. Belgium is a major trader in chemicals and is frequently used as a transit country for precursor chemicals destined for South America. Narcotics traffickers continue to exploit Belgium's large port facilities, transportation infrastructure, and central location in Western Europe for transshipment of illicit drugs. The increase in the incidence of trafficking in MDMA/ecstasy, which began in 1999, continued unabated in 2000. Belgium's contribution to the United Nations Drug Control Program (UNDCP) budget rose to $451,000 in 2000. Belgium is a party to the 1988 UN Drug Convention.

Belgium has not been a significant producer of illicit narcotics or precursor chemicals. Recent developments, however, are cause for concern. Police seized ten amphetamine or ecstasy laboratories in 2000, compared to only four in 1999. Authorities suspect that Dutch synthetic drug producers are periodically shifting operations over the border from the Netherlands in order to avoid mounting law enforcement pressure there. Cannabis resin, also called hashish, is the most widely distributed and used illicit substance in Belgium, but heroin abuse produces the most important health and social problems, including drug-related crime. Belgian police recognize the growing threat posed by trafficking in MDMA/ecstasy.

Heroin trafficking into Belgium is in the hands of Turkish trafficking groups who dominate the Balkan transportation route. Turkey is both a major heroin processing country and a major heroin transit country, particularly for heroin destined for Europe. Authorities estimate that 75 to 80 percent of the Belgian heroin market is controlled by these Turkish groups. Additionally, Belgium is an important transit route for heroin destined to other European markets, but not the U.S.

Policy Initiatives. In 1998, the government adopted a plan to re-organize the police forces. At the federal level, the Gendarmerie and the judicial police will be integrated into a federal police force in charge of major criminal investigations, including significant national and international narcotics investigations. At the local level, the Gendarmerie and the municipal police will be merged. The reorganization includes the creation of an anticorruption service for the federal police. The plan will combine approximately 17,000 members of the Gendarmerie, 1,200 members of the judicial police force, and 19,000 local and municipal police. Integration on the federal level is scheduled for January 1, 2001 when national agencies of the judicial police and the Gendarmerie will be merged. Local integration will follow later in the year.

A new state security plan, announced in June, included the creation of a special working group, under the auspices of the Ministry of Health, to devise a new Drug Control Strategy for Belgium. This working group, composed of representatives of all interested ministries, was expected to announce its findings in November 2000. However, discussions were continuing in December 2000 and the final report was delayed until early in 2001.

Accomplishments. In 1999 parliament passed an organized crime law that defines a "criminal organization" and criminalizes membership in such an organization. Individuals can be extradited or tried based solely on their membership in a criminal organization. The legislation endorses the use of undercover operations and wiretaps by law enforcement agents.

Law Enforcement Efforts. Belgian law enforcement authorities pro-actively investigate individuals and organizations involved in illegal narcotics trafficking into and through Belgium. The law enforcement efforts of the Gendarmerie currently focus on major trafficking organizations; particularly those involved in trafficking of heroin, cocaine and, most recently, those involved in MDMA or ecstasy.

Belgium is also one of the preferred transit routes for organizations trafficking ecstasy to the United States, although there is no evidence that ecstasy entering the U.S. from Belgium is in an amount sufficient to have a significant effect on the U.S. Most of the ecstasy trafficked through Belgium originates in the Netherlands. Recently, special units have been established within the Gendarmerie to specifically investigate ecstasy trafficking organizations. Ecstasy seizures have increased dramatically. Dutch trafficking organizations commonly use Brussels' Zaventem airport as a transit point for drug couriers en route to the United States. Ecstasy seizures at Zaventem increased from 132,000 tablets in 1998 to 296,000 in 1999. Arrests increased from six in 1998 to 24 in 1999.

Interdiction efforts by Belgian customs authorities at Antwerp and Zeebrugge lack sufficient resources and manpower. Customs officials report that a five-man team of inspectors is responsible for all port activities involving drugs. Officials report that 3,000-4,000 containers are loaded and unloaded at the port of Antwerp on a daily basis. The inspection team has the capacity to search five to ten containers per week. In addition to containerized freight, customs also reports increased activity involving the ships' crew members. This entails the smuggling of smaller quantities of drugs by individual crew members and larger operations where crew members arrange to off-load large amounts of drugs from the ship before it reaches the dock.

Interdiction efforts by police and customs increased significantly in 2000. Customs officials seized an increasing number of packages destined for the U.S. from express mail companies and the Belgian postal service. For the first time, police at Zaventem airport initiated enforcement operations targeting outbound flights to the United States in response to the increasing number of couriers transporting (primarily) ecstasy to U.S. cities. The U.S. has no evidence that ecstasy entering the U.S. from Belgium is in quantities sufficient to have a significant impact on the U.S. Belgian customs officials at the port of Antwerp remain proactive and responsive to information concerning suspected drug shipments secreted on vessels or in containerized freight.

Belgian law on asset confiscation was expanded through national legislation adopted July 17, 1990, which allows for confiscation of proceeds of a crime, including investment income from crime proceeds and assets purchased with criminal proceeds. These measures complement Article 42 of the Criminal Code that defines confiscation. If the goods subject to confiscation cannot be located, a judge may assess their value and order confiscation of equivalent assets. This practice is known as "confiscation by equivalent."

Asset seizure legislation was expanded in May 1997 to provide procedures for the seizure of real estate and to provided a legal basis to freeze assets pending the outcome of a criminal investigation. The 1997 law also permits the Belgian judiciary to execute foreign judgments regarding seizure and confiscation of assets derived from drug trafficking or money laundering. Since the assets seizure legislation was implemented in 1990, judges have most frequently used "confiscation by equivalent" procedures. Since 1990, judges have used the confiscation procedure in 330 cases, involving an estimated illegal profit of more than $155.5 million.

Corruption. Corruption is not judged a problem within the narcotics units of the law enforcement agencies. Legal measures exist to combat and punish corruption.

Agreements and Treaties. Belgium is a party to the 1988 UN Drug Convention. Belgium is also a party to the 1961 Single Convention and its 1972 Protocol and the 1971 UN Convention on Psychotropic Substances. In December 2000 Belgium signed the UN Convention Against Transnational Organized Crime and its protocols. The U.S. and Belgium have an extradition treaty, as well as a new mutual legal assistance treaty entered into force in January 2000. Belgium and the United States are in the process of finalizing a Memorandum of Understanding to formalize Belgian participation in the Caribbean Maritime Counterdrug Initiative. Final approval is expected in early 2001.

In 2000, Belgium entered into a bilateral police cooperation agreement with Poland. This agreement is comprehensive in nature and includes the framework/guidelines for cooperation on narcotics matters. Negotiations for a bilateral police cooperation agreement are also underway with Slovakia.

The Belgian Ministry of Justice maintains drug liaison offices in 13 foreign cities with territorial competence for 33 countries. The drug liaison offices in Bangkok, Bogota, The Hague, Istanbul, Madrid, Moscow, Paris, Rabat, Rome, Vienna, Warsaw, Washington, and Wiesbaden are staffed by either judicial police or Gendarmerie officers. In 2000, new liaison officers were assigned to Morocco (Rabat) and Bucharest.

Belgium is a member of several international antidrug organizations, including the heads of European Narcotics Law Enforcement Agencies (HONLEA), the European Committee to Combat Drugs (CELAD), and the Dublin Group. Belgium is a member of the major donors group of the UNDCP. Belgium ratified the Europol convention in June 1998.

Cultivation/Production. Police have noted an increase in production of amphetamines and ecstasy, primarily in illegal laboratories on the Belgium/Netherlands border. These laboratories are linked to criminal organizations that distribute the drugs within Europe and to the United States—most frequently through the cities of New York, Miami, Los Angeles and Orlando, Florida. Authorities have also reported an increase in the cultivation of cannabis, primarily in greenhouses but also in hydroponic facilities.

Drug Flow/Transit. Belgium remains an important transit point for drug traffickers because of its port facilities (Antwerp is Europe's second busiest port), airports, excellent road connections to neighboring countries, and central geographic location. Most illicit drugs pass through Belgium via the ports of Antwerp and Zeebrugge; across the border from the Netherlands; or through Brussels Zaventem airport. Smuggling routes change constantly, but Belgian authorities believe an increasing number of heroin shipments arrive from Central Asia via Turkey. Belgian customs reports that the heroin is most probably concealed in containerized freight in relatively small quantities of 10-15 kilograms. Customs reports that because Antwerp is considered a "free trade zone," traffickers know that inspections of containerized freight are minimal. These shipments take one of two trafficking routes: in northern Europe through Hungary, Poland, the Czech Republic, Slovakia and Austria or in southern Europe through Italy. Cannabis sold in Belgium originates in Morocco, Latin America, and Southeast Asia and arrives via land, air, and sea routes.

Express mail companies in and around Brussels are commonly used by trafficking organizations to smuggle ecstasy tablets into the United States. The express mail method of transport is particularly popular with import organizations in Los Angeles, New York, and Florida. Recently, Dutch groups have begun utilizing the Belgian postal system to send packages containing drugs to U.S. destinations. Israeli criminal organizations continue to play a prominent role in the transportation of ecstasy from producers in the Netherlands and Belgium to distributors in the United States. Belgian authorities are cooperating with U.S. law enforcement agencies to disrupt this transit route.

Demand Reduction. Belgium has an active antidrug educational program that targets the country's youth. The regional governments (Flanders, Wallonia, and Brussels) now administer such programs. The programs include education campaigns, drug hotlines, HIV and hepatitis prevention programs, detoxification programs, and a pilot program for "drug-free" prison sections. The Belgian system contrasts with the U.S. approach in that Belgium directs and targets its programs at individuals who influence young people versus young people themselves. Teachers, coaches, clergy, and the like are thought to be better suited to deliver the antidrug message to the target audience because they already are known and respected by the young people.

Belgium recently participated in a training program with the U.S.-based DARE program. DARE officials traveled to Belgium to sponsor a "train the trainers" project. Belgian based trainers are now qualified to teach the DARE program to other demand reduction officers in Europe.

Bilateral Cooperation. Cooperation between the United States and Belgium continues to be excellent with an increasing number of joint investigations. This has resulted in an increase in the number of International Controlled Drug Deliveries (ICDs) facilitated by DEA between Belgium and the United States. These ICDs have been particularly effective in combating ecstasy trafficking between the two countries.

The DEA and the FBI enjoy close and effective cooperation with the judicial police and the Gendarmerie. U.S. law enforcement agencies represented in Brussels enjoy excellent working relationships with offices of the Belgian national magistrates and prosecutors.

The Brussels DEA country office and the Belgian Gendarmerie regularly exchange intelligence information concerning trends and techniques employed by ecstasy trafficking organizations operating between Belgium and the United States. This exchange of information (including arrest and seizure statistics) enables both countries to anticipate emerging patterns of drug transportation. Belgian police have recently initiated an intelligence program targeting outbound commercial flights from Belgium to the United States.

The Road Ahead. The United States looks forward to continued close cooperation with Belgium in combating illicit drug trafficking and drug-related crime, and to continued Belgian participation in multilateral counternarcotics fora such as the Dublin Group.

Bosnia and Herzegovina

I. Summary

Bosnia and Herzegovina (BiH) remains a small but growing market for drug consumption and is emerging as a regional hub for narcotics transshipment. Despite increasing inter-entity law enforcement cooperation, gradual improvements in oversight of the financial sector, and several major drug seizures, local authorities are still politically divided, law enforcement efforts still poorly coordinated, and the justice system still antiquated and inadequate. The narcotics trade remains an integral part of the influence of the foreign and domestic organized crime figures and the ethnic extremists who operate with the tacit acceptance—if not active collusion—of corrupt public officials. Minimal border and customs controls, grave flaws in the regulatory structure, and the absence of political will have left few practical impediments to narcotics trafficking and related crimes through Bosnia. Bosnia is a party to the 1988 UN Drug Convention, and is attempting to forge ties with regional and international law enforcement agencies.

Bosnia occupies a strategic position along the historic Balkan smuggling routes between heroin processing centers in Turkey and markets in Western Europe. Although Bosnia is not a major transit country for drugs coming to the United States, it remains a country of concern to the U.S. Narcotics trafficking emerged as a serious problem during the Bosnian conflict, both as a reflection of the general breakdown of law and order and as a means for the warring parties to generate revenue. Bosnian authorities at the state, entity, and cantonal level have been unable to stem the continued transit of illegal aliens, black market commodities (especially cigarettes), and narcotics since the conclusion of the Dayton Accords. Traffickers have capitalized in particular on minimal border controls, an inefficient judicial system, widespread public sector corruption, and poor coordination between law enforcement agencies.

Although domestic production is limited to small-time cannabis cultivation, local authorities - particularly those in Sarajevo canton - are concerned that the "foreign influence" of Bosnia's large international community and the impact of rapid urbanization and high unemployment will contribute to the development of a domestic market for narcotics consumption.

Policy Initiatives. Although Bosnia has neither a national police force nor a national counternarcotics strategy, the initial deployment of the State Border Service (SBS) in June has markedly improved controls at a limited number of international crossing points. Telephone hotlines, local press coverage, and public relations efforts organized by the international community have focused public attention on smuggling and black-marketeering. Foreign donors continue to provide law enforcement assistance training to Bosnian authorities both on a bilateral basis and through international agencies. The USG's bilateral law enforcement assistance program continues to emphasize counternarcotics and task force training.

Accomplishments. Under close supervision by the international community, Bosnian law enforcement agencies have taken initial steps toward substantive cooperation on the counternarcotics front, most notably with the recent formation of an inter-entity joint task force. The Federation (one of two "entities" created by Dayton, the other entity being the "Republika Srpska" or "RS") Interior Ministry is finalizing plans to establish branch offices in each canton, an initiative which will greatly increase its ability to more aggressively pursue its mandate as the lead counternarcotics agency in the Federation.

Despite these isolated initiatives, however, neither the RS nor the Federation has made significant progress in addressing the sclerotic legal environment that allows criminals to act with virtual impunity. Neither entity has vigorously pursued new legislation to reinforce existing asset seizure/forfeiture or money-laundering statutes. Law enforcement cooperation is primarily informal and ad hoc. Mutual legal assistance is severely limited by the judicial bureaucracy, and serious legal and bureaucratic obstacles to the extradition of Bosnian citizens remain in place. The conclusion of a bilateral border-control agreement with Croatia, upgrades in Bosnia's INTERPOL office and more active participation in regional fora such as the Southeast Europe Cooperation Initiative (SECI) may presage improvements in these areas.

Law Enforcement Efforts. Law enforcement efforts improved in 2000, but remain inadequate given the level of narcotics trafficking. Police counternarcotics operations in the Federation have resulted in 394 arrests and the seizure of over 40 kilograms of marijuana in 2000. Cantonal police in Bihac in Western Bosnia seized over 2,000 marijuana plants in 2000. In separate actions between September 30 - October 1, 2000, law enforcement authorities in the Republika Srpska (RS) seized a 144 kilograms shipment of cocaine and a 70 kilograms shipment of marijuana, both reportedly destined for shipment to Western Europe.

On November 29, 2000, Sarajevo Canton authorities arrested Nazim Uskuplu, a Turkish national wanted by European authorities for his alleged role in narcotics trafficking operations throughout Central and Eastern Europe. Uskuplu's arrest (based on an INTERPOL warrant) is an important step forward in Bosnia's full membership in INTERPOL; local officials are investigating Uskuplu's actions and associates in Bosnia but believe his presence in BiH indicates major trafficking activity. On November 11 2000, local authorities seized an 11 kilogram shipment of marijuana, reportedly from Albania, near Mostar in southern BiH.

These actions represent largely isolated efforts by local authorities rather than a coordinated national counternarcotics program. Despite these individual successes, narcotics-trafficking remains a crime of opportunity limited primarily by the interest of criminal elements in the higher profit margins offered by black-marketeering and alien smuggling. Ethnic Albanians, supplied by Turks, are responsible for smuggling Turkish-refined heroin through Bosnia to Western Europe. Authorities have yet to focus systematically on major narcotics traffickers; they have yet to bring a major case to trial or bring adequate resources to bear. The recent closure of the UN Drug Control Program (UNDCP) office in BiH will further complicate local initiatives and impede coordination with international authorities. To date, existing asset seizure and forfeiture statutes have neither been pursued by prosecutors nor imposed by judges. There is no established mechanism to identify, trace, or share narcotics-related assets.

Corruption. Law enforcement agencies have substantiated links between the narcotics trade and the parallel institutions that undermine the rule of law in Bosnia. Bosnia has no laws specifically targeting narcotics-related public sector corruption and has not pursued charges against public officials on narcotics-related offenses. A long-standing parliamentary inquiry into the disappearance of over 20 kilograms of heroin from the safe of the war-time Federation Interior Minister has made no progress to date. The U.S. Embassy in Sarajevo is coordinating closely with the Stabilization Force (SFOR), the United Nations Mission in Bosnia-Herzegovina (UNMIBH), and the Office of the High Representative (OHR) to combat the influence of organized crime, corrupt officials, and ethnic hard-liners, all of whom use the narcotics trade to generate revenue.

Agreements and Treaties. There is no bilateral agreement between BiH and the United States specifically pertaining to counternarcotics. Counternarcotics does feature prominently in the USG's bilateral law enforcement assistance training program, which has provided both the Federation and the RS advice and assistance in a broad range of law enforcement issues including investigative techniques, border controls, and major case management. Although both entities worked closely with the UNDCP under the terms of a 1997 agreement, UNDCP concluded its program in BiH in early 2000. Bosnia is a party to the 1988 UN Drug Convention and is developing bilateral law enforcement ties with neighboring states to combat narcotics trafficking. Bosnia signed the UN Convention Against Transnational Organized Crime and its Protocols in December, 2000.

Drug Flow/Transit. Major heroin and marijuana shipments are believed to travel through BiH by several well-established overland routes. Local officials believe that Western Europe, not the U.S., is the ultimate destination for this traffic. Judging by reported seizures, cocaine trafficking is minimal; the market for designer drugs such as ecstasy in urban areas is small but reportedly growing. Law enforcement authorities posit that elements from each ethnic group and all major crime "families" are involved in the narcotics trade, often collaborating across ethnic lines. There is mounting evidence of links between—and conflict among—Bosnian criminal elements and organized crime syndicates in Russia, Albania, the FRY, Croatia, Austria, Germany, and Italy. Drugs are believed to have figured prominently in the June murder in Sarajevo of a Montenegrin figure with reputed ties to narcotics trafficking.

Cultivation and Production. Federation Interior Ministry officials believe that domestic cultivation is limited to small-scale marijuana crops grown in southern and western BiH. Although refinement and production are negligible, law enforcement officials indicate that Bosnia is increasingly becoming a temporary storage point for drug shipments en route from east to west.

Domestic Programs. USG-sponsored community-oriented policing programs, which contain a strong antidrug component, have reached over 40,000 Bosnian children. Although individual cantons have sponsored pilot community outreach programs and sought international assistance to introduce more proactive initiatives, there is no national drug awareness program.

Bilateral Cooperation. The USG remains committed to providing the counternarcotics training and support needed to foster independent law enforcement operations by BiH authorities.

The Road Ahead. With the International Police Task Force's ongoing shift from training to monitoring of local police forces, the international community ("IC") will increasingly emphasize advanced specialized training in areas such as counternarcotics. The USG in particular has focused its bilateral training programs on related subjects such as organized crime, public sector corruption, and border controls. The IC is working to increase local capacities and to encourage interagency cooperation by mentoring and advising the local law enforcement community. The recent formation of an inter-entity joint task force will facilitate the exchange of information between RS and Federation authorities and could pave the way for inter-entity law enforcement operations, a distant, but essential goal.

Bulgaria

I. Summary

Centrally located on Balkan routes leading through Romania or Serbia, Bulgaria is an important transit route between Turkey and Western Europe for Southwest Asian heroin and Southeast Asian marijuana. Authorities have also seized maritime deliveries of South American cocaine. Although Bulgaria is not a major transit country for drugs coming to the United States, it remains a country of concern to the U.S.

In total, Bulgaria's seizures in 2000 are comparable to those in the rest of Europe combined, and represent a major increase over previous years. Bulgaria is a party to the 1988 UN Drug Convention. The Government of Bulgaria (GOB) seeks to expand and enhance regional and international counternarcotics cooperation, and requires schools to offer a demand reduction program. Law enforcement authorities cooperate actively with U.S. and third country counterparts, both bilaterally and multilaterally, on counternarcotics case and issues. Narcotics use is a relatively small, but growing problem.

Bulgaria is a significant drug-transit country centrally located on three traditional Balkan routes between Turkey and, respectively, Serbia, Romania, and the former Yugoslav Republic of Macedonia. Small quantities of opium poppies and cannabis are grown in Bulgaria. Clandestine labs produce amphetamines and diverted acetic anhydride is transported from Bulgaria to Turkey.

Combating administrative corruption and organized crime are policy priorities for the Bulgarian government. The President, in office since January 1997, supports these priorities. The GOB has at its disposal potentially wide-reaching new anticrime legislation, including a 1998 money laundering law which authorities are working to implement, and which some in the government have suggested might be usefully updated and strengthened. As a result of late 1998 legislation which took full effect on January 1, 2000, the magistracy's investigative functions have been restructured. The government has provided extensive training to police investigators and others given greater responsibilities by these structural changes. The Prosecutor General, in office since January 1999, continues to seek ways to ensure a more effective prosecutorial assault on crime, including narcotics trafficking.

Policy Initiatives. National strategy against narcotics is coordinated by an inter-ministerial body composed of ministers or deputy ministers from 17 ministries and agencies. This council has designated the National Service for Combating Organized Crime (NSBOP) as the national focal point to gather and analyze information from all agencies. NSBOP continues to develop its new Center for Narcotics Data Coordination, with five analysts and four technical experts. It plans to open linked centers in major population centers, beginning with Plovdiv and Varna, and will provide additional training for its analysts with funding from the EU’s PHARE and UNDCP multi-country drugs project.

Accomplishments. GOB narcotics seizures during 2000 were significant, both in the numbers of seizures and in the quantities of illicit drugs seized. NSBOP believes its seizures during 2000 were even more significant since they involved highly-placed or centrally-placed individuals in the narcotics distribution system. NSBOP also has pointed to greater coordination within the government, included with the Customs Agency and other divisions of the Ministry of Finance. Additional GOB accomplishments in 2000 included increasingly focused application of the money-laundering law in conformity with international standards, and productive use of assistance from PHARE and other western sources.

Law Enforcement Efforts. A 1999 Drugs and Precursors Law provided a legislative framework for GOB antinarcotics strategy, and law enforcement agencies, primarily NSBOP, attempted in 2000 to carry out this strategy with a team approach in which analysts developed expertise in specialized fields, then coordinated information. The new Narcotics Information Center coordinates data from internal sources, from Interpol, and from Romania and Macedonia, and will be expanded to include data from the region as a whole. The Customs Agency used newly improved methods and training to discover and seize large amounts of narcotics during 2000.

Current statistics were compiled from data provided by the Interior Ministry's National Service for Combating Organized Crime and by the Finance Ministry's Customs Agency (renamed in 2000 formerly the General Customs Directorate). In 2000, there was a significant increase in the total number of drug seizures at border check points. Specifically, in 2000, there were 80 drug seizures at border check points compared to 31 and 35 seizures in 1999 and 1998, respectively. However, there is an increase in the number of drug users in Bulgaria, estimated at 44-48,000, up from 25–30,000 in 1998. Also, five illicit drug laboratories were destroyed in 2000.

Corruption. There have been significant improvements under the current government, but corruption, including allegedly among police and especially Customs officials, continued in 2000 to be an important political topic in Bulgaria and could figure largely in the scheduled 2001 elections. The U.S. has no specific information that any senior GOB official has been involved in drug trafficking or other narcotics-related crimes. The government, in place since May 1997, has made the fight against organized crime and corruption a major priority, and has pressed forward with an extensive legislative reform effort to strengthen anticrime laws.

Agreements and Treaties. Bulgaria is a party to the 1988 UN Drug Convention, the 1961 Single Convention and its 1972 Protocol, the 1971 Convention on Psychotropic Substances, and the 1990 Convention on Laundering, Search, Seizure and Confiscation of Proceeds from Crime. Bulgaria signed the UN Convention Against Transnational Organized Crime and its Protocols in December, 2000.

The 1924 U.S./Bulgarian Extradition Treaty and a 1934 supplementary treaty are in force and in use, although there have been some difficulties in implementation. For example, a Bulgarian court in 2000 released a narcotics trafficker whose provisional arrest and extradition the U.S. had requested. Consultations are anticipated in 2001 regarding Bulgarian implementation of the treaty. Bulgaria is also party to the 1957 Council of Europe Convention on Extradition, the 1959 European Mutual Legal Assistance Treaty in Penal Measures, and the 1983 Council of Europe Convention on Transfer of Sentenced Persons. It also has a bilateral treaty with Turkey for transfer of convicted persons. The Bulgarian Customs Agency has memoranda of understanding on mutual assistance and cooperation with several European counterparts and is negotiating or updating others. The U.S. and Bulgaria signed a cooperation agreement in 2000. The GOB coordinates with INTERPOL and EUROPOL.

International Cooperation. Bulgarian and U.S. law enforcement agencies work well together in counternarcotics investigative efforts and in information sharing. Information on criminal investigations subsequent to arrest is held in secret, but is releasable to foreign law enforcement agencies at the discretion of the Prosecutor's office.

Bulgaria has signed and ratified the 1988 UN Drug Convention and is a signatory to the 1990 Council of Europe Convention on Laundering, Search, Seizure and Confiscation of Proceeds from Crime. International agreements enter automatically into Bulgarian law. The Bulgarian government cooperates closely in providing timely information and evidence, but it has not adopted specific laws or regulations to ensure availability of narcotics investigations records to appropriate USG and other government personnel.

The GOB has no bilateral agreements with other countries on money laundering. It is a party to the 1988 UN Drug Convention, and is building its antinarcotics units to more effectively combat the problem. It works with INTERPOL and is trying to expand and extend other forms of international cooperation, including especially with the EU. It is set to play an active, indeed leading role in South European Cooperation Initiative (SECI) anticrime efforts.

Cultivation and Production. Law enforcement officials do not routinely calculate crop size or yields for illegal narcotics crops. When necessary, case-specific determinations are made based on the weight of dry leaves yielded from one square meter times the dimensions of the field. In general, yield calculations for illegal narcotics crops are difficult, since it is not unusual, for example, to find cannabis hidden in a cornfield.

Drug Flow/Transit. Heroin from the Golden Crescent and Southwest Asian sources (e.g., Afghanistan) is the main illegal drug transiting Bulgaria, though some marijuana and cocaine also transits. The northern Balkan route from Turkey through Bulgaria to Romania is the most frequently used overland route; there are others through Serbia and the former Yugoslav Republic of Macedonia. In previous years, GOB officials noted the transiting of apparently increasing amounts of Brazilian cocaine. The precursor chemical acetic anhydride, possibly produced in Bulgaria or coming from Macedonia, is transported from/through Bulgaria to Turkey.

Domestic Programs (Demand Reduction). Bulgaria's drug abuse problem is small but growing. Experts estimate that in this country of some eight million, there are up to 50,000 heroin users, fewer than 10 percent of whom are in treatment. Cocaine is too expensive for all but the wealthy. Marijuana has traditionally been used in rural areas. Ecstasy is an important and growing problem among university students. As in previous years, drug consumption is particularly worthy of note among marginalized Roma, among whom glue sniffing is a serious problem. There is also drug abuse in prisons, in some localized geographic areas, and among traffickers. Demand reduction has received government attention for several years. The Ministry of Education requires that schools nationwide teach health promotion modules on substance abuse. There is also a World Health Organization program for health promotion in 30 target schools. The Bulgarian National Center for Addictions provides training seminars on drug abuse for schoolteachers nationwide. There are also municipal demand reduction programs co-sponsored by the National Center for Addictions and the Institute of Public Health in six major cities and a number of smaller communities. Three universities provide professional training in drug prevention.

For drug treatment, there are 35 outpatient units and 10-12 inpatient facilities nationwide. The National Center for Addictions has psychiatric units in 20 regional centers. Specialized professional training in drug treatment and demand reduction has been provided through programs sponsored by UNDCP (funded by the U.S. State Department and the Government of Italy), EU/PHARE, and the Council of Europe's Pompidou Group.

The U.S. promotes increased attention to the problems of narcotics trafficking and money laundering, assists Bulgarian law enforcement and anticrime legislative reform efforts with training, advisory assistance and some equipment, and encourages further cooperation between Bulgarian and U.S. law enforcement agencies, including the DEA, FBI, and Customs. In late 2000, the Department of Justice sent a regional legal advisor, who will set up a permanent office in Sofia in early 2001 to work with the GOB on law enforcement issues including drugs. Likewise, a Department of Justice/Central and East European Legal Initiative advisor was appointed to consult with and advise Bulgarian prosecutors and investigators. USAID's assistance to the training of magistrates, to date primarily judges, also serves to reinforce the GOB's antinarcotics effort.

Bilateral Cooperation. Bilateral cooperation between U.S. and Bulgarian law enforcement officials is excellent, with regular and close consultation between the GOB and DEA. U.S. bilateral assistance has focused on ILEA mid-level training and periodic FBI training. Through this INL-funded program, the USG has also provided advisory assistance to the GOB in the drafting of money laundering legislation and reform of the penal code and procedural penal code.

The Road Ahead. With new Department of Justice advisors funded by the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL), the continuation of USAID assistance to magisterial training, and U.S. Embassy training and equipment aid to Bulgarian law enforcement agencies in the pipeline, 2000 was a promising year for USG aid to the GOB. In 2001, the U.S. will use this assistance and will continue to encourage the GOB in antidrug efforts, combating money laundering, drafting and implementing anticrime legislative reforms, and continuing mutual cooperation with U.S. law enforcement. It will work with the GOB to identify further law enforcement training, advisory and equipment needs, and seek funding to meet those needs. The U.S. encourages the GOB to exchange counternarcotics information with other states in the region. The U.S. will also promote counternarcotics cooperation with regional and Western European assistance and UNDCP support for Bulgarian law enforcement authorities.

Croatia

I. Summary

Croatia is not a major producer of narcotics. However, smugglers—driven to other routes in the early 1990s by war and instability—once again are using Croatia as part of the Balkans transshipment route of narcotics, particularly heroin, to Western Europe. Organized crime elements in Albania control heroin trafficking into Croatia. Cocaine also transits Croatia, entering frequently at the port of Rijeka. There have been some large cocaine seizures in Croatia. Although Croatia is not a major transit country for drugs entering the United States, it remains a country of concern to the U.S. During 2000, no new antinarcotics laws were passed, although the government is considering new legislation to increase its capacity to fight organized crime and corruption and to strengthen the interdiction powers of the customs directorate. In 2000, Croatia joined the Southeast European Cooperation Initiative's regional center for combating transborder crime.

The Ministry of Interior is the government ministry most directly involved in antinarcotics activities. Croatia's national narcotics strategy focuses on reducing domestic availability and demand for narcotics and curtailing Croatia's use as a transshipment point. Croatia generally has strong cooperation with its neighbors to disrupt drug trafficking. Croatia is a party to the 1988 UN Drug Convention.

Croatia, with a geographic position along the most direct route to Europe from Asia and limited resources for securing its extensive coast and borders, offers significant possibilities for transshipping narcotics. The Balkans route crossed Croatian territory prior to the break-up of Yugoslavia, although that traffic was substantially displaced to neighboring states (for example, the Czech Republic and Hungary) during the turmoil following the break-up of Yugoslavia. The government of Croatia detects an increased use of Croatia as a transshipment center corresponding to the increase in stability in the region.

Domestic narcotics abuse remains a priority area of attention, a problem that has mildly worsened during 2000. In particular, police are concerned about an increase in overdose deaths as well as a surge in amphetamine and ecstasy among the nation's youth.

Policy Initiatives. Croatia continues to pursue its national strategy for combating abuse of narcotics. This initiative included implementation of measures to reduce both supply and demand. The Interior Ministry, Justice Ministry, and Customs Directorate have primary responsibility for law enforcement issues, while the Ministry of Health has primary responsibility for the strategy to reduce and treat drug abuse. The Interior Ministry's antinarcotics division is responsible for coordinating the work of drug units in police departments throughout the country. The Interior Ministry maintains cooperative relationships with INTERPOL, neighboring states as well as with counterparts in Germany and the United States.

Law Enforcement Efforts. During the first ten months of 2000, police made 5,532 seizures of narcotics and 6,132 persons had drug-related criminal charges filed against them. The number of criminal acts represents approximately a ten percent increase over 1999. Seized drugs include: 6.2 kilograms of heroin, one kilogram of hashish, 390 kilograms of marijuana, 930 kilograms of cocaine, 9,100 ecstasy pills and two kilograms of amphetamines. Croatian officials believe that the vast majority of seized cocaine was destined for European markets, largely because cocaine is prohibitively expensive for most citizens of Croatia. It represents only seven to eight percent of total drugs consumed in the Croatian market.

Croatian officials estimate that there are between 10,000 to 15,000 heroin addicts, consuming between 400 to 500 kilograms of heroin annually. On average, approximately 1,400 Croatians become addicted to heroin every year, although the rate of growth is slowing and the average age of addicts is increasing, suggesting that demand for heroin may have peaked.

Corruption. Croatian Interior Ministry officials maintain that corruption is not an endemic problem. Throughout 2000, however, there continued to be allegations of narcotics-related corruption and narcotrafficking involving the then-ruling HDZ party, elements of the Croatian intelligence and military and Bosnian Mafia groups. These allegations have not been substantiated.

Agreements and Treaties. In 2000, Croatia entered the Southeast European Cooperative Initiative's (SECI) agreement to prevent and combat transborder crime. Croatia is a party to the 1988 UN drug convention, the 1961 UN Single Convention and its 1972 Protocol and the 1971 UN Convention on Psychotropic Substances. Extradition between Croatia and the United States is governed by a 1902 extradition treaty between the U.S. and Yugoslavia, which remained in force after Croatian independence. According to the Croatian constitution, Croatian citizens may not be extradited with the exception of extradition to the International War Crimes Tribunal in the Hague. Croatia signed the UN Convention Against Transnational Organized Crime and its Protocols in December, 2000.

The Croatian government is drafting a new narcotics law that will enhance its ability to prosecute those suspected of trafficking in precursor chemicals. Pending passage of the law, the government uses its adherence to the 1988 UN Drug Convention as the basis for prosecuting precursor trafficking. The GOC also is preparing new legislation to strengthen undercover activities against the drug trade as well as new measures to enhance its ability to fight organized crime.

Cultivation/Production. The Interior Ministry continues a program to identify areas of marijuana cultivation. The ministry assesses that small-scale marijuana production (less than 15,000 plants) for domestic sale and use is the only narcotics production within Croatia.

Demand Reduction. 40,000 young people use drugs regularly, and between 10,000-20,000 are addicts, according to Croatian authorities. The GOC continues to follow its 1998 national strategy on demand reduction. The Ministry of Health, with limited resources, has implemented demand reduction programs. The Ministry of Education requires drug education in primary and secondary schools. The state-run medical system offers treatment programs for addicts. The GOC attempts to use high-profile events, such as the destruction of over 900 kilograms of seized cocaine to raise awareness of the dangers of narcotics trafficking and the role of law enforcement.

Most demand reduction initiatives, however, are locally driven and are financed from the local budgets. These local programs encompass everything from prevention of drug abuse to rehabilitation and re-socialization of the addicts. The GOC does not maintain a comprehensive list of institutions dealing with demand reduction. After much debate, the GOC rejected a proposal to decriminalize possession of marijuana for personal use.

Croatia's democratic transition in early 2000 opened new opportunities for cooperation and assistance on rule-of- law and law enforcement cooperation issues that the U.S. is actively pursuing actively. The Interior Ministry and U.S. law enforcement agencies enjoyed strong cooperation at the operational level. In addition, the United States is providing technical assistance to the Croatian Customs Directorate as part of a World Bank-funded effort trade facilitation project that would, inter alia, improve the capabilities of Croatian customs to profile suspicious shipments, interdict drug shipments and curb corruption.

Cyprus

I. Summary

Cyprus is not a producer of significant amounts of narcotics. There is increasing concern about a perceived increase in drug use among the population, but the Government of Cyprus (GOC) traditionally has low tolerance for any narcotics use and continues its public affairs campaign to remind Cypriots that narcotics use carries heavy penalties. As a result of its large offshore banking sector, Cyprus remains vulnerable to money laundering. Cyprus is a party to the 1988 UN Drug Convention.

Cyprus has a small, but growing population of soft-core drug users. Hashish is the most commonly encountered drug, followed by heroin, cocaine, and ecstasy, all of which are available in most major towns. Users consist primarily of young people and tourists. Cypriot law carries a maximum prison term of one year for drug users under 25 years of age with no police record. While there is no indication of illicit drug or precursor chemical trafficking, the island’s highly developed business, modern telecommunications system, fifth largest merchant shipping fleet in the world, and the free-port status of its two main seaports make Cyprus an ideal location for such activity. Still low by international standards, drug-related crime has been steadily rising since the 1980's.

Policy Initiatives. During 2000, the GOC continued its efforts against money laundering, as outlined in the subject chapter of this report. It followed a low tolerance policy on drug use in the country.

Accomplishments. These are mostly in the money laundering area, which are found in the subject chapter of this report.

Law Enforcement Efforts. Although no statistics are available, Cyprus aggressively pursues drug seizures, arrests, and prosecutions for drug violations. Cypriot police are generally effective in their law enforcement efforts; their techniques and capacity remain restricted by a shortage of financial resources.

International enforcement cooperation is limited somewhat by the political division of the island into the internationally recognized Republic of Cyprus and the "Turkish Republic of Northern Cyprus (TRNC)." Turkish Cypriots have their own law enforcement organization responsible for the investigation of all narcotics-related matters. There continues to be strong evidence of a growing trade in narcotics between the "TRNC" and Turkey and Britain, as well as significant money laundering activities. There is also some evidence of smuggling of narcotics from the "TRNC" to southern Cyprus.

Corruption. There is no evidence of senior or other officials facilitating the production, processing, or shipment of drugs.

Agreements and Treaties. Cyprus is a party to the 1988 UN Drug Convention and the 1995 European "Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime." During 2000, Cyprus ratified the European "Convention on the Transfer of Proceedings in Criminal Matters" and the European "Convention on Mutual Assistance in Criminal Matters." A new extradition treaty between the U.S. and Cyprus went into effect in September 1999. A mutual legal assistance treaty, signed by the GOC and USG in December 1999 awaits ratification by the U.S. Senate and the GOC.

Cultivation/Production. The only illicitly cultivated controlled substance in Cyprus is cannabis, and this is grown only in small quantities for local consumption. The Cypriot authorities vigorously pursue this illegal cultivation.

Drug Flow/Transit. There is no indication that Cyprus is used as a significant transit route for illicit narcotics. Law enforcement efforts have mostly converted Cyprus from a drug transit point to a "broker point," in which dealers meet potential buyers and negotiate the purchase and shipment of future shipments. This change is likely also as a result of improved conditions in Lebanon. Lebanese containerized freight now moves directly to third countries without transiting Cyprus.

Domestic Programs/Demand Reduction. While drug use remains relatively low in Cyprus, recent increases have prompted the government to actively promote demand reduction programs through the school system and social organizations, occasionally with DEA-Nicosia participation. Drug treatment is available.

Policy Initiatives. Combating money laundering in Cyprus continues to be one of the highest priorities of the USG’s policy towards Cyprus.

Bilateral Cooperation. Bilateral cooperation between the USG and GOC in law enforcement efforts has been excellent, as has GOC bilateral cooperation with neighboring countries.

The Road Ahead. The USG seeks closer cooperation from the Office of the Attorney General, the Central Bank, the Cyprus Police and the Customs Authority officials in drug enforcement and anti-money laundering efforts. The USG will work with the GOC to heighten its enforcement of its laws.

Czech Republic

I. Summary

The Czech Republic is both a transhipment and destination country for illegal narcotics. Limited amounts of pervitine are also produced in country. Continuing a trend cited in last year's report, Czech antidrug policy emphasizes interdiction and criminal penalties against both narcotics traffickers and, to a lesser extent, users. Czech cooperation with U.S., European and other international law enforcement efforts remains excellent. The Czech Republic is a party to the 1988 UN Drug Convention.

Heroin from the south (mostly Turkey, moving north via the Balkans) continues to transit the Czech Republic en route to Northern and Western Europe. Czech authorities attribute much of this activity to Kosovar Albanian organized crime gangs, some of which maintain warehouse operations in the Czech Republic. Some heroin is also sold in the Czech Republic. Cocaine and West African marijuana also reach the Czech Republic, mostly in transit to Northern and Western Europe. While cocaine tends to be too expensive for the average Czech, some is sold to Western tourists. Marijuana is the drug of choice for younger Czechs. The use of ecstasy is reportedly also increasing, particularly among Czech University students. Some pervitine is produced in the Czech Republic, primarily for local consumption (although some is now being exported to nearby countries, e.g., Germany and Poland).

Recognizing that money laundering had become a problem, the Czech government took steps in 1999 and 2000 to clamp down on illegal financial transactions. On August 1, 2000, for example, a law prohibiting new anonymous accounts went into effect. As part of their drive toward European Union (EU) membership, the Czechs have also been engaged in legal and judicial reform efforts aimed at fighting major economic and financial crimes and public corruption.

Policy Initiatives. In October 2000 the Czech government approved a "National Drug Strategy, 2001-2004," which will guide Czech antinarcotics efforts in the coming years. At the same time, the Czech government approved a new "Strategy for the Fight Against Organized Crime," which includes several antinarcotics components.

Another significant new policy initiative (announced in November 2000) was to give the Czech National Antidrug Center (NADC) greater autonomy. Effective January 1, 2001, the NADC will report directly to the Minister of Interior.

Law Enforcement Efforts. The Czech National Antidrug Center (also known as the Antidrug Police) and a special Czech Custom's unit which focuses on narcotics and weapons smuggling have the lead in most major antinarcotics cases. Both are considered elite law enforcement units. Two other special police units, the Anticorruption Squad (SPOK) and the Anti-Organized Crime Police (UOOZ), sometimes handle cases which involve narcotics (e.g., UOOZ might discover an organized crime gang engaged in a combination of prostitution and drug-smuggling operations), but tend to turn purely narcotics cases over to the NADC. Despite budgetary problems, all of these units appear to work hard, take their antinarcotics responsibilities seriously and cooperate effectively on drug cases.

Corruption. We are unaware of any new cases of drug-related police or public corruption having been exposed during 2000. The antidrug police, in particular, pride themselves on their integrity. The government's "Clean Hands" anticorruption campaign has sought to identify and prosecute both public officials and business executives engaged in illegal financial dealings (including money laundering), but has not reported any narcotics-related cases.

Agreements and Treaties. The Czech Republic has upheld its responsibilities as a party to the 1988 UN Drug Convention and the World Customs Organization's Convention on Mutual Administrative Assistance for the Prevention, Investigation and Repression of Customs Offenses. Antinarcotics cooperation with the U.S. is excellent, both in agency-to-agency terms and within the framework of the U.S.-Czech Mutual Legal Assistance Treaty and the U.S.-Czech Customs Mutual Assistance Agreement. The Czechs also cooperate closely and effectively with several of their European partners. Germany, France, Switzerland, and the Nordic states have antinarcotics liaison officers attached to their embassies in Prague. The Czech Republic signed the UN Convention Against Transnational Organized Crime in December, 2000.

Cultivation/Production. Marijuana production is negligible and apparently for personal uses only. The Ministry of Agriculture monitors the cultivation and marketing of opium poppies grown for the poppy seeds used in traditional Czech cuisine. Production in 2000 should remain consistent with non-illicit domestic use.

Pervitine (a Czech-produced methamphetamine) is the second-most popular drug (after marijuana) in the Czech Republic. Traditionally, pervitine is produced in small labs in private homes, with production aimed at domestic users. Official reports suggest some Czech-produced pervitine is being exported to neighboring states (specifically, Germany and Poland).

Drug Flow/Transit. According to a recent report by the Mini-Dublin Group, there are some indications (based on seizure data) that the transit of cocaine and ecstasy through the Czech Republic is increasing. Czech police are also concerned about the role of organized crime (particularly groups from Kosovo, Nigeria, Vietnam and the CIS-states) in the trade and trafficking of marijuana and heroin. Amphetamines produced in Poland and Slovakia reportedly transit the Czech Republic en route north and west.

Domestic Programs/Demand Reduction. There are approximately 16,000 Czech drug addicts. Czech schools engage in various antidrug education programs, but their effectiveness is difficult to gauge. The U.S. has funded some efforts to train teachers in demand reduction methods. The Czech government also maintains a network of counseling and health centers available to drug users seeking drop-by or continuing treatment. For heroin addicts both methadone therapy and needle-exchange programs are available. Health experts believe the needle-exchange program has greatly limited the spread of HIV/AIDS among IV drug users.

Policy Initiatives. U.S. goals and objectives in the Czech Republic include bolstering Czech law enforcement (including antinarcotics) capabilities, maintaining effective links between U.S. law enforcement agencies and their Czech counterparts, supporting Czech anti-money laundering efforts, and promoting drug abuse awareness.

Bilateral Cooperation. In recent years, the U.S. has provided a number of training opportunities for Czech police, customs officers, prosecutors and judicial officials. This training has included, inter alia, antidrug and anticorruption components. Moreover, DEA maintains an extremely active cooperative relationship with the Czech Antidrug police, and U.S. Customs Service agents work effectively with their Czech counterparts. The U.S. has also helped fund a teacher-training program aimed at demand reduction.

The Road Ahead. The U.S. will continue to cooperate very closely with Czech government and police officials in their antinarcotics efforts. Czech NADC officers and U.S. DEA agents will remain in close contact both on specific cases and in broader counternarcotics program. The U.S. will work to identify resources to continue to provide various training programs for Czech police, investigators, prosecutors and judges to complement our goals of improving law enforcement effectiveness and assisting in Czech anticorruption efforts.

Denmark

I. Summary

Denmark's strategic geographic location and status as Northern Europe's primary transportation point make it an attractive drug transit country. The Danes cooperate closely with their Scandinavian neighbors and the EU against the transit of illicit drugs, and Denmark plays an increasingly important role in helping the Baltic States combat narcotics trafficking. While quantities of drugs seized in Denmark are relatively small, Danish authorities assume that their open border agreements and high volume of international trade allow some drug shipments to transit Denmark undetected. Danish authorities report a dramatic increase in the use of ecstasy and amphetamines in 2000, especially among younger Danes, although the figures on seizures do not reflect this increase. Denmark is a party to the 1988 UN Drug Convention.

Drug traffickers use Denmark's excellent transportation network to bring illicit drugs to Denmark for domestic use and for transshipment to other Nordic countries. Evidence suggests that drugs from Russia, the Baltic countries, and central Europe pass through Denmark en route to other EU states and the U.S. The amount flowing to the U.S. is relatively small and is not in an amount sufficient to have a significant effect on the U.S. Seizures of all drugs except amphetamines are significantly lower than last year. Police in the region report this is due to a change in the trafficking routes used by drug traffickers.

Policy Initiatives. Denmark continues to provide training, financing, and coordination assistance to the three Baltic countries (Estonia, Latvia, and Lithuania), principally to improve interdiction efforts. Denmark, Sweden, and Norway have each stationed a Nordic liaison officer in one of the Baltic countries through their Politi Told Nordic (PTN - Nordic Police Customs) agreement. Denmark's officer is stationed in Lithuania.

Accomplishments. Danish police continued their aggressive counternarcotics efforts in 2000. Because of public outcry over the release of arrested drug dealers in 1996, many of whom were foreigners, Danish law was amended to make it easier to place drug dealers behind bars and to expel foreign dealers who reside illegally in Denmark. Danish authorities view narcotics-related money laundering as a manageable problem despite Denmark's role as a major financial center.

Danish law permits forfeiture and seizure of assets in drug-related criminal cases. Authorities strongly uphold existing asset seizure and forfeiture law and cooperate with foreign authorities in such cases. There were no significant seizures of assets in 2000. In 1998, U.S. authorities criticized Danish customs for lax enforcement on exports of precursor chemicals to Latin America. Since then, the Danes have been very responsive and proactive on monitoring exports.

Law Enforcement Efforts. Seizures for all types of drugs except amphetamines were down in 2000, reflecting increasingly effective narcotics control efforts and changes in trafficking routes. Through December 2000, Denmark confiscated 18.6 kilograms of cocaine (down from 24.2), 20.7 kilograms of heroin (down from 96), 1,697 kilograms of hashish and marijuana (down from 14,051), and 18,538 MDMA tablets down from 26,117.) Figures used here for 1999 include a few more months data than those used in last year's report. (The decline in seizures of hashish and marijuana is not as dramatic as it appears as the large numbers in 1999 were due to a single 12-ton seizure aboard the M/V Kvedara.) Amphetamine were the only drugs that saw an increase in seizures - from 31.6 kilograms in 1999 to 42.9 kilograms in 2000. In April, authorities seized eight kilograms of cocaine off of a charter flight from Venezuela at the international airport in Bilund. Local gangs had discovered that there were no customs checks, not even drug-sniffing dogs, at this airport. In a related operation, in August authorities arrested a large number of Danish drug traffickers, along with Bandido and Hell's Angels gang members. One group of traffickers had enlisted the Bandidos as bodyguards and distributors and the other group had enlisted the Hell's Angels. This multi-ton hashish trafficking operation made Danish authorities aware that Danes, and not foreigners as previously believed, conduct much of the drug trafficking in Denmark.

Denmark continues to bolster the interdiction capabilities of the Baltic States. One of the bases of operations is on the Baltic island of Bornholm, Denmark's easternmost territory, where a continuing project involving the customs services and police, in cooperation with the Danish Navy, works to interdict narcotics, other smuggled contraband and illegal migrants.

Corruption. The U.S. has no knowledge of any involvement by Danish government officials in drug production or sale, or other drug-related corruption. Danish laws regarding public corruption in general are sufficiently stringent that there are no laws specifically targeting narcotics-related corruption.

Agreements and Treaties. Denmark complies with the requirements of all major international conventions and agreements regarding narcotics to which it is party. Denmark also contributes toward the development of common counternarcotics standards within the international organizations of which it is a member. Denmark ratified the 1988 UN Drug Convention in 1991 and signed the enabling legislation for the European Drugs Unit, now Europol, in 1997. Denmark signed the UN Convention Against Transnational Crime and its protocols in December 2000. The U.S. has signed a Customs Mutual Assistance Agreement (CMAA) and an Extradition Treaty with Denmark. Denmark participates in the Dublin Narcotics Assistance Coordinating Group and EU meetings on related topics.

Cultivation/Production. There is no substantial cultivation or production in Denmark.

Drug Flow/Transit. According to law enforcement officials in Denmark, drugs transit Denmark on their way to neighboring European nations and, to a lesser extent, to the U.S. There is no evidence that drugs entering the U.S. from Denmark are in an amount sufficient to have a significant effect on the U.S. The ability of the Danish authorities to interdict this flow is slightly hampered by Denmark's membership in the EU and the resultant open border policies.

Domestic Programs/Demand Reduction. Denmark's Ministry of Health estimates that there are between 10,000 and 12,000 drug users in Denmark, which includes only those people who are officially registered as addicts with the government and enrolled in government programs. The country maintains an extensive counternarcotics education program in schools and youth centers. Drug addicts are treated in a large number of institutions throughout Denmark. In addition to in-patient care at hospitals, out-patient care is available at hospitals, youth crisis centers, and special out-patient clinics. These programs are free of charge to Danish residents. In 1996, the government began funding programs that involve the treatment of addicts through a medically supervised reduction program as an alternative to serving prison sentences. The debate on a proposal to permit doctors to supply some addicts with heroin continues, but support is waning.

Bilateral Cooperation. The U.S. enjoys excellent cooperation with its Danish counterparts on drug-related issues and in assisting in joint investigations.

The Road Ahead. In the coming year, the Danish authorities hope to increase their seizures of ecstasy tablets within Denmark and work closely with the Norwegian authorities in interdicting drugs. The Danes will also continue to build on the PTN agreement with their Nordic neighbors to increase information sharing and cooperation against narcotics trafficking. The U.S. will continue its liaison with Danish authorities and work to deepen its regional cooperation against illicit drug trafficking.

Estonia

I. Summary

This increase in drug use and transit through Estonia has been met by an increased response from law enforcement authorities. The arrest of Estonian drug traffickers in neighboring countries and domestically, as well as the destruction of several domestic drug labs, demonstrates Estonia's involvement in the international narcotics trade. Nevertheless, by international standards, Estonia's narcotics problem is not grave. Estonia joined the international community and ratified the 1988 UN Drug Convention in May of 2000.

Estonia's geographical position, on the edge of the Baltic Sea linking Europe and Russia, makes transportation of persons and goods and tourism the country's leading economic sectors. Tourism and soft border controls between EU members has resulted in relatively safe transit routes for heroin, amphetamine and cannabis products from the Netherlands, Belgium, and the Scandinavian countries to Estonia.

There is a growing demand for illicit narcotics. A recent survey shows that the number of 15-16 year old students who admit having tried illegal drugs at least once has increased