Belize

Belize, part of the major transit zone for narcotics moving towards the U.S., was removed from the Majors list in 1999. At the time, declining seizure rates and lack of hard evidence that drugs were transiting through Belizean waters and air space supported this decision. However, new evidence that Belize is a regular transshipment point continues to emerge.

The Government of Belize (GOB) recognizes that the transit of cocaine and other drugs are serious matters. The GOB continues to work closely with the United States on narcotics control and other international crime issues—most notably, stolen vehicles. The Belize Police Department, the Belize Defense Force, and the newly established International Airport Canine Unit provide counternarcotics efforts. Although the size of the Belize Police Department did not change in 2003, requests for training and other assistance to professionalize the force have been notable. Unfortunately, police department efforts to battle narcotics transshipment are half-hearted due to lack of air and maritime assets and internal government corruption. Belize is a party to the 1988 UN Drug Convention.

Belize, a potentially significant transshipment point for illicit drugs between Colombia and Mexico, continues to cultivate a small amount of marijuana, primarily for local consumption. The Belize Defense Force and the Belize Police Department have led successful eradication efforts over the past few years. Contiguous borders with Guatemala and Mexico, large tracts of unpopulated jungles and forested areas, a lengthy unprotected coastline, hundreds of small caves, and numerous navigable inland waterways, combined with the country's rudimentary infrastructure add to its appeal for drug trafficking. The number of abandoned suspect boats and airplanes found in Belizean waters and in clandestine areas increased in 2003. Drug-trafficking go-fasts have access to the coast at Belize City and are able to unload illicit cargo alongside legitimate shipments.

Policy Initiatives. The Anti-Drug Unit (ADU) expanded to 35 officers in 2003. The ADU is responsible for all counternarcotics work, both on land and at sea. Roughly one-third of the officers is stationed in the ADU office in Belmopan and the rest are stationed in the Belize City Office. Unfortunately, their superiors assign many ADU officers to combat violent crime in the streets, cutting into the time they can spend on narcotics investigations. The “Canine Unit”, a branch of the ADU, comprising seven canine members and seven handlers, refurbished its kennel in 2003. The U.S. Government donated three canines upon GOB request. One of the canines was trained to detect explosives—a new concept for Belize. Another canine was cross-trained to find both narcotics and weapons.

In 2003, Belize's Ministry of Home Affairs established a Forensic Laboratory project. A newly constructed building in Ladyville will house the Forensic Laboratory, fingerprinting facilities, and city morgue. A British contractor conducted an intense evaluation of the existing program, and upon his recommendation, new equipment was donated, intensive training was requested and a project manager was hired to develop a new Forensics Program with focus on Crime Scene Management and fingerprinting. The police department, which traditionally relied on officers for technical crime scene assistance, realized that it needed dedicated crime scene technicians and fingerprint technicians, and it hired civilians to do the job.

Accomplishments. A recent program provided significant assistance to unlicensed firearms investigations. The GOB installed an anonymous tip line for crime information, and advertised a one-month “Gun Amnesty” period. After the amnesty period, Belize took a harder stance on unlicensed firearms and revised its firearm legislation. This appears to have been one of the most successful self-initiated programs within Belize law enforcement over the past few years.

The GOB fully cooperated in one joint counternarcotics operation in 2003 utilizing Joint Task Force Bravo assets.

Cultivation/Production. The GOB successfully carried out many independent marijuana eradication missions in 2003. By October 2003, 103,058 marijuana plants had been eradicated. Illicit cultivation continues to occur at reduced levels from the widespread cultivation of a decade ago. Belize has a dense rainforest canopy, and farmers often grow crops in remote areas. Marijuana remains the most popular drug crop grown in Belize, but there is no evidence that it has any significant effect on the U.S. The BDF and BPD conduct manual marijuana eradication missions on a regular basis using their own aerial reconnaissance program.

Precursor Chemical Control. Although Belize has had very limited signs of precursor chemical production, the GOB, in support of the 1988 UN Drug Convention, has an existing precursor chemical program. The Medical Department at Carl Heusner Hospital keeps track of all statistics on precursor chemicals. Legislation for precursor chemical control was written and is in the edit process, with no specific date for presentation to the House. The legislation covers a variety of aspects including control, enforcement and registration of all precursor chemicals.

Asset Seizure. GOB law permits the seizure of assets connected to drug trafficking. To date planes, boats, cash, vehicles and weapons have been seized. Unfortunately, the vast majority of these seized assets are sold at grossly undervalued amounts to “friends” of the government. Very little, if any, of the proceeds from sale of seized assets is reinvested in fighting crime or narcotics trafficking.

Domestic Programs/Demand Reduction. GOB demand reduction efforts are coordinated by the National Drug Abuse Control Counsel (NDACC), which provides drug abuse education, information, counseling, rehabilitation and outreach. NDACC also operates a public commercial campaign, complete with radio advertisements and billboards, designed to dissuade youths from using drugs.

Law Enforcement Efforts. Authorities seized 56.7 kilograms of cocaine in 2003. They also seized 55 kilograms of cannabis, 1 kilogram of cannabis seed, 144 grams of heroin, and 2 kilograms of crack cocaine. The ADU is supposed to be dedicated solely to handling narcotics cases and conducts operations throughout the year. To this end, 473 arrests were made on drug-related charges stemming from possession of or trafficking in marijuana, cocaine, crack cocaine and heroin. Additionally, fifteen go-fast boats originating from Colombia and three aircraft were seized. Finally, the Belize police arrested two local high-level narcotics traffickers, who were surrendered to U.S. authorities and currently are being prosecuted in the U.S.

The GOB's most serious internal drug problem is rooted in drug-associated criminality. Obtaining convictions remains difficult, as the Office of the Public Prosecutor remains under-trained, under-paid, and poorly equipped. The GOB is refurbishing its fingerprinting program with the assistance of the Panamanian government and the FBI. This is thought to be the key factor in obtaining convictions. The GOB expects to have its fingerprinting program reconstructed by the end of FY2004. The government also expects to have 14 civilian crime scene technicians trained and in the field by March 2004 to improve crime scene collection in conjunction with the opening of the new Forensics Laboratory.

Corruption. There is no evidence of narcotics-related corruption within the GOB. However, there is a general problem with corruption within some government agencies. In April 2000, the GOB created an Office of the Ombudsman, which can independently investigate allegations of wrongdoing. The police also have an internal affairs investigator charged with handling complaints against police officers. A number of officers were dismissed in 2003 for misbehavior. RSO, DEA and NAS continue to gather increasing evidence and information pointing to the fact that the GOB suffers from serious corruption problems at all levels.

Agreements and Treaties. Belize has been a party to the 1988 UN Drug Convention since 1996. In July 2002, Belize ratified a stolen vehicle treaty with the U.S. Five stolen cars were investigated by the National Insurance Crime Bureau (NICB) and were successfully returned to the U.S. under the treaty. In September 1997, the GOB signed the National Crime Information Center Pilot Project Assessment Agreement, which allows for sharing of information and data between the U.S. and Belize. In 1992, Belize set the standard for maritime counternarcotics cooperation in the region by signing the first Maritime Counter Drug Agreement with the U.S. The GOB and the U.S. signed an Over Flight Protocol to the 1992 Maritime Agreement in April 2000 and placed a request for more joint operations under the Sea Rider Agreement in June 2003. A new Extradition Treaty entered into force in March 2001, and one individual on the “United States Marshals Service 15 Most Wanted” list was extradited under that treaty. The U.S.-Belize Mutual Legal Assistance Treaty (MLAT) entered into force in July 2003; Belize has been extremely responsive, primarily through its Financial Intelligence Unit, in executing requests under this treaty. Belize is a party to the Inter-American Convention Against Corruption.

Drug Flow/Transit. Maritime routes along Belize's lengthy coastline, remote border crossings and navigable inland waterways are the suspected means for trafficking narcotics through Belize to Mexico, Guatemala, and the U.S. The major narcotics threat in Belize is cocaine transshipment through Belize waters for onward shipment to the U.S. Cargo guards protect shipments of cocaine. Mexicans and Colombians carry automatic weapons and are considered extremely dangerous. These circumstances, coupled with the lack of visibility at night and the vegetation concentrated on the mangroves, makes sea duty hazardous. The primary means for smuggling drugs are go-fast boats transiting the reef system; traffickers can operate in relative safety due to numerous hiding spots and shallow water. Often the drugs are off-loaded on the ocean side near the barrier reef to smaller vessels. These vessels freely transit inside Belize waters due to the lack of adequate host nation resources and interdiction capabilities, including equipment, vessels, personnel, and other items deemed necessary, as well as a lack of critical information, such as locations and times of delivery.

Once cocaine is delivered to Belize, it moves northward—often along the northern highway. This highway leads to the Corozal commercial free zone as well as the Santa Elena Belize/Mexico border crossing. Trafficker exploitation of several unguarded remote border crossings and lax customs enforcement contribute to cross-border operations.

Three deserted airplanes suspected of hauling large drug shipments were found in the latter half of 2003. One Antonov Russian cargo plane landed in the Northern District of Blue Creek and was suspected of hauling 2,000 kilograms of cocaine. These discoveries signal that air trafficking has continued to increase in Belizean airspace. It is suspected that river “wet drops” have also increased.

Intelligence suggests that the Colombian drug cartels have established partnerships with Mexican drug cartels, creating an increase of Mexican drug trafficking activities in Belize. It has also been confirmed that these Mexicans have been masterminding clandestine aircraft and sea vessel drug operations within Belize. The local Belizean drug trafficker merely provides resources and assists in the load transiting Belizean territory into Mexico while the Mexicans are fully in charge and responsible for the operation's success.

U.S. Policy Initiatives and Bilateral Cooperation. The U.S. strategy in Belize continues to focus on assisting the GOB to develop a sustainable infrastructure to combat its drug problems effectively. In 2003, USG support included: counternarcotics and law enforcement assistance, which provided the host nation with equipment and training for the Belize police department's counternarcotics unit and canine branch, as well as the Belize Defense Force; and training for the Department of Immigration and the Customs and Excise Department, as well as the magistrate, supreme courts and the Director of Public Prosecution's Office. Under DEA leadership, an Airport Anti-Drug Task Force was established in October 2003, comprised of the Police Department, Immigration, Customs and the Airport Canine Unit. The USG also responded to a request by the International Airport to purchase new narcotic and explosive detection canines to reinstate a canine program that has been extremely effective in the past. The U.S. Coast Guard and the U.S. Southern Command, including JIATF-E and JTF-Bravo among others, have responded to GOB requests for training and logistics support for counternarcotics activities.

The Road Ahead. Given frequent changes in trafficking routes and Belize's lack of maritime and air assets, the potential remains for Belize to become an ever-increasing transshipment point for cocaine. Local marijuana cultivation necessitates continual monitoring and periodic eradication. After five years in power, the People's United Party continues to advocate combating drug trafficking and associated crime as a top priority, but avoids providing the appropriate units with resources. U.S. Mission support should continue to focus on supporting police counternarcotics units and the task force within the airport, providing improved communications and technology for all law enforcement branches, and improving Belize's Rule of Law infrastructure. Improvements in communications, collection of crime scene evidence and forensic examination, and increased training within the Prosecution office are currently being pursued, and seem to point the way toward a stronger criminal justice system in Belize.

Canada

The Government of Canada (GOC) seeks to reduce the harm caused by illicit drugs within its borders. Health Canada is the ministry charged with overall coordination of the nation's counternarcotics strategy, although other federal departments, municipal and provincial/territorial governments are fully involved in addressing control of illicit drugs. Internationally, Canadian law enforcement coordinates closely with U.S. counterparts to stem the flow of narcotics into North America and to combat transnational organized crime. Canada is a party to the 1988 United Nations Drug Convention Against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances.

In 2003, the GOC promulgated key regulations to help the GOC to monitor and control firms and transactions involving chemical precursors. The regulations, which implement legislation passed in 1996, are an important first step in making it more difficult for traffickers to obtain precursor chemicals and over-the-counter drugs needed to produce illicit synthetic drugs; however, Canada remains a source and transit country for precursor chemicals and marijuana destined for the United States, including higher-potency hydroponically-grown marijuana. The GOC proposed cannabis reform legislation (Bill C-38) that included alternate sentencing in cases involving possession of small amounts of marijuana intended for personal use—civil penalties (fines) rather than criminal charges—and increased criminal penalties for drug traffickers. The bill died under procedural rules in November, but was reintroduced in February 2004 by the new government, led by Liberal Party Leader Paul Martin.

In recent years, Canada has been a significant producer (from imported bulk materials) and transit country for precursor chemicals and over-the-counter drugs that are used to produce illicit synthetic drugs. Regulations effective in early 2003, however, require the licensing of Canadian companies to import, export, produce, or distribute precursor chemicals. This is a positive first step that makes it more difficult for criminals to divert precursor chemicals into the U.S. or other countries.

Pseudoephedrine (PSE), a common cold remedy and the main component in the manufacturing of methamphetamine, is legally imported into Canada from China, India, and Germany. Based on seizures and arrests in the United States in recent years, U.S. law enforcement authorities estimate that a significant portion of the PSE imported into Canada has been diverted to the United States for the production of illicit drugs. In 2003, however, DEA reported a significant drop in seizures of Canadian-sourced PSE, indicating a possible decline in diversion; as of September 15, U.S. authorities had seized 8.8 million Canadian-sourced tablets compared with 22 million tablets in 2002. Other precursor chemicals available in Canada and used in the production of synthetic drugs are sassafras oil, piperonal, and gamma butyrolactone (GBL). These precursors are used in the manufacturing of ecstasy (medthylenedioxymethamphetamine or MDMA), methylenedioxyamphetamine (MDA), and gamma hydroxybutyrate (GHB). A variety of synthetic drugs are also produced in Canada, including MDA and GHB, and are trafficked into the United States.

Cannabis cultivation, much of it destined for the United States, continues to expand throughout the country and is a serious concern for both governments. While the GOC does not produce annual production estimates, the Royal Canadian Mounted Police (RCMP) has, since 1998, estimated annual production of marijuana at approximately 800 metric tons (MT), based on seizures and average yield per plant. However, the a significant increase in marijuana seizures by U.S. law enforcement along the U.S.-Canada border, from 26,435 pounds in 2002 to 48,087 pounds in 2003, has led U.S. analysts to believe that production in Canada may be higher than previously estimated. In addition, productivity appears to be increasing. Vietnamese organizations, for example, have developed technologically-advanced methods to produce high-THC level marijuana in hydroponic hothouses. Canadian law enforcement officials have also seized a few aeroponic installations, in which the roots are suspended in mid-air and sprayed regularly with a fine midst of nutrient-enriched water. Multi-thousand plant operations are no longer uncommon in Canada, and the RCMP has destroyed over 1.1 million plants in each of the last five years. Canadian law enforcement agencies have made considerable efforts to target criminal organizations involved in marijuana production, this is made more difficult by limited resources, increasing cultivation, and the minimal penalties imposed on growers by many courts.

Canada is also a significant consuming country of illicit drugs.

According to the RCMP, outlaw motorcycle gangs and Asian, Colombian, and Italian-based criminal organizations cooperate with one another to varying degrees in the trafficking and distribution of illegal drugs. Asian-based organized crime dominates the trafficking of heroin from Southeast Asia to Canada. The RCMP estimates that one to two tons of heroin are required annually to meet the demand of Canada's estimated 25,000 to 40,000 heroin users. Cocaine trafficking and distribution appears to involve a number of organized crime groups as well as individual carriers and sellers, Canadian or foreign. The RCMP estimates that approximately 15 to 24 metric tons of cocaine enter Canada annually, originating in South America and often transiting through Jamaica and the United States. In addition to substantial domestic production, Canada imports marijuana from abroad. In 2002, Canadian authorities seized nearly 3 metric tons of foreign marijuana coming from the United States, Mexico, Colombia, the Caribbean, the Middle East, and to a lesser degree, Thailand and Morocco. The RCMP reports that ecstasy (MDMA) imports into Canada have been increasing over the past several years and law enforcement officials in Canada seized 1.7 million ecstasy tablets during 2003. Though small-scale production occurs in Canada, it is Netherlands-based traffickers who bring the bulk of the ecstasy supply into Canada from Western Europe. The RCMP estimates that the drug trade in Canada generates over $3 billion in criminal proceeds at the wholesale level and $13.5 billion at the street level. Drug use among Canada's youth appears to be increasing; a Health Canada study in 2003 reported that 50 percent of Canadian youth between the ages of 16 and 19 have tried marijuana more than once.

Policy Initiatives. The GOC recognized that Canada needed to adopt a regulatory and administrative framework to better control precursor chemicals. Regulations, promulgated in 2002, took effect in January 2003, which implemented provisions of the Controlled Drugs and Substances Act. The new system strengthens Canada's ability to monitor and control precursors and other substances used in the clandestine manufacturing of synthetic drugs. Companies must now be properly licensed in order to import, export, produce, or distribute precursor chemicals. As of November 2003, the GOC had granted licenses to almost 300 companies and issued over 400 export and 800 import permits for class A precursors. The new regulations encourage legitimate companies to work with Canadian authorities to identify suspicious trafficking activity; however, reporting of such activity is voluntary rather than compulsory and companies are not required to undergo mandatory on-site visits prior to being registered. Also, the regulations do not grant law enforcement officials access to all records of regulated transactions.

In May 2003, the GOC introduced cannabis reform legislation that, inter alia, included alternate sentencing for possession of small, personal-use amounts of marijuana. Had the legislation passed, an adult caught with 15 grams or less of marijuana (equivalent to about 20 cigarettes) would have received a fine of $115 and a minor, a fine of $75. The legislation died when Parliament prorogued on November 12, although it was reintroduced by the new government in February 2004. Canadian law currently provides for the legal use of marijuana for medical purposes and Health Canada was instructed in 2003 to make marijuana available to some 700 Canadians with medical authorization. An Ontario court of appeals ruled in October that ill people may grow their own marijuana supply or obtain it from designated growers. The ruling closed a loophole, created by a previous court decision, which had effectively invalidated Canada's marijuana possession law as unconstitutional because it failed to provide exemption for medical use. In December 2003, Canada’s Justice Department announced that it would not prosecute the approximately 4,000 people who were charged with possession of marijuana during this period of legal confusion.

In September 2003, the provincial government of British Columbia opened a supervised drug injection site in the Downtown Eastside area of Vancouver, home to an estimated 4,000 injection drug users. The pilot project, the first of its kind in North America, will cost an estimated $1.5 million a year to operate. British Columbia is financing the project, although Health Canada has committed $1.15 million to fund research. Vancouver city officials hope that the injection site will reduce the number of heroin deaths in the city as well as decrease the spread of HIV and Hepatitis C from intravenous drug use.

On December 12, Prime Minister Paul Martin announced a major initiative to create a new Ministry of Public Safety and Emergency Preparedness (PSEP). The new Ministry incorporates the law enforcement and public security activities of the former Office of the Solicitor General with additional functions of critical infrastructure protection and emergency preparedness; it will also add a National Crime Prevention Centre. In addition, a new Canada Border Services Agency will build on the Canada-U.S. Smart Border Initiative and the progress being made in expediting trade and travel while enhancing security with respect to high-risk arrivals. A new National Security Advisor to the Prime Minister in the Privy Council Office has been appointed and a new Cabinet Committee on Security, Public Health, and Emergencies established to manage national security and intelligence issues and activities and coordinate government-wide responses to all emergencies, including public health, natural disasters and security.

Accomplishments. In May 2003, the GOC announced the renewal of its comprehensive drug strategy. Health Canada committed $186 million over five years to reducing both the demand for, and the supply of, illegal drugs in Canada. The renewed strategy will attempt to accomplish its goals through education, prevention, and health promotion initiatives, as well as stronger enforcement efforts. The strategy also provided new funding for statistical research on Canadian drug trends to enable more informed decision-making.

Law Enforcement Efforts. In April 2003, the DEA and RCMP announced the arrest of over 65 individuals in ten cities across the United States and Canada. The investigation, dubbed Operation Northern Star, targeted the entire methamphetamine trafficking process, including the suppliers of precursor chemicals, chemical brokers, transporters, manufacturers, distributors, and money launderers. The 34,000 pounds of pseudoephedrine seized in the investigation could have produced approximately 20,000 pounds of methamphetamine.

In May, the RCMP seized approximately 1.4 metric tons of cocaine in international waters in Project Outer Limits, the fifth largest single seizure of cocaine in Canadian history, with a street value of $105 million. In December, RCMP and Canada Customs seized 200 kilograms of ecstasy, the largest amount of this drug ever seized in Canada. In September, an interagency police operation netted over 12,000 marijuana plants in eastern Ontario, worth an estimated street value of over $9 million.

Corruption. Canada holds its officials and law enforcement personnel to a very high standard of conduct and has strong anticorruption controls in place. Government personnel found to be engaged in malfeasance of any kind are removed from office and are subject to prosecution. Investigations into accusations of wrongdoing and corruption by government officials are thorough and credible. As a matter of government policy, Canada neither encourages nor facilitates illicit production or distribution of narcotic or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions.

Cultivation/Production. Cannabis cultivation, because of its profitability and relatively low risk, is a thriving industry in Canada. While the GOC does not produce a national estimate of cannabis production, the RCMP has estimated it at around 800 metric tons for many years; however, the USG believes that the figure could be much higher. Law enforcement officials seized approximately 1.1 million plants in raids in 2003. While outdoor cultivation continues, use of indoor grow operations is increasing because it allows production to continue year-round; they are also becoming larger and more sophisticated. Canadian law enforcement authorities estimate that marijuana cultivation in British Colombia alone represents a $1 billion dollar a year growth industry with a sizable amount of the harvest being smuggled in to the United States. Nationwide, marijuana production generates an estimated $4 billion in criminal proceeds annually.

Drug Flow/Transit. Drugs are smuggled into Canada for domestic use and for transshipment to the United States. Some illicit drugs destined for Canada come from or through the U.S. Heroin and marijuana arrive by both sea and land; cocaine and hashish arrive primarily by sea. Traffickers use couriers, commercial shipments, and international mail to move drugs.

Domestic Programs (Demand Reduction). Health Canada is the focal point for the nation's drug control policy and emphasizes demand reduction as an integral component of its drug control strategy. In an effort to decrease demand, Health Canada has financed a number of public education campaigns, many with a specific focus on youth. The GOC, along with NGOs, also offers extensive drug abuse prevention programs. Drug treatment courts in Vancouver and Toronto offer alternatives to jail for convicted drug abusers facing incarceration for non-violent drug possession offenses.

Agreements and Treaties. Canada is a party to the 1988 UN Drug Convention, the 1971 UN Convention on Psychotropic Substances, and the 1961 UN Single Convention on Narcotic Drugs as amended by the 1972 Protocol. Canada is a party to the Inter-American Convention on Mutual Legal Assistance in Criminal Matters and the Inter-American Convention Against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives and Other Related Materials. Canada has also signed the Inter-American Convention Against Corruption. Canada has ratified the UN Convention against Transnational Organized Crime. Canada has ratified all 12 United Nations Security Council Resolutions pertaining to terrorist financing.

Canada actively participates in international activities aimed at eliminating illicit drugs. In November 2003, Canada assumed the Chairmanship of the Organization of American States’ Inter-American Drug Abuse Control Commission (CICAD) at its meeting in Montreal. In 2003, Canada provided technical assistance and $115,000 to CICAD for specific projects, including developing partnerships between health and law enforcement officials on drug issues. The GOC participates actively in the Dublin Group and the Commission on Narcotic Drugs (CND) of the United Nations Office on Drugs and Crime (UNODC).

Bilateral Cooperation. Canada and the United States have an extensive cooperative law enforcement relation. The two countries collaborate closely at both the federal and state/local levels, and this also extends into the multilateral arena. The principal bilateral cooperative forum is the annual Cross-Border Crime Forum, which engages policymakers in a joint effort to guide that relationship and to enhance coordination. The Forum’s technical working groups continue to identify areas and priorities, such as intelligence sharing, where the two countries can better advance a common agenda.

In 2001, the U.S. Department of Justice and the Canadian Department of the Solicitor General released a joint report assessing the common threat posed by the cross-border illegal drug trade; this is currently being updated. In addition, Project North Star is an ongoing mechanism for operational coordination. The two governments also have broad array of agreements in place to facilitate cooperation in legal matters, such as the extradition and mutual legal assistance treaties, an information-sharing agreement, and an asset sharing agreement.

Canada is one of the USG' principal extradition partners.

The RCMP and U.S. law enforcement agencies provide reciprocal direct access to each other's criminal databases, including the Canadian Police Information Center (CPIC), a firearms identification database, and a unique automotive paint chip database. Canadian law enforcement benefits from access to the El Paso Intelligence Center (EPIC) and the USG's tactical National Drug Intelligence Center (NDIC). However, some aspects of Canada’s criminal justice system, such as Canada’s strict privacy laws, limits timely information exchange in some areas.

The Road Ahead. The U.S. is confident that law enforcement cooperation and coordination with Canada will continue to expand in the future. The GOC has taken important steps to enhance the capabilities of Canadian law enforcement to confront the growing threat of international organized crime, drug trafficking, and money laundering. For the year ahead, the USG remains particularly interested in the issue of precursor chemicals, and hopes that the chemical control regulations enacted by Canada in 2003 can be further strengthened to become an even more effective instrument in the effort to stem the diversion of these chemicals into the United States or other countries. Given the impact of Canadian-produced marijuana on the U.S., the USG is concerned about the possible negative consequences that some aspects of the proposed cannabis reform package could have on trafficking or on international cooperation, and hopes that international considerations are taken into account as the legislative process proceeds.

To further improve cooperation with Canada, the USG is committed to: support Canadian efforts to further strengthen chemical control legislation and regulatory practices, consistent with international standards and practices; maintain and expand two-way intelligence sharing to include the timeliness and relevance of information provided; expand professional exchanges and cooperative training activities between our law enforcement agencies; work with the GOC to increase the risks and penalties for criminals engaged in drug trafficking and other organized crimes; maintain joint cross-border investigations and operations; and to actively promote drug abuse awareness and prevention, particularly among our young people.

Costa Rica

Costa Rica serves as a transshipment point for narcotics from South America to the United States and Europe. The bilateral Maritime Counterdrug Cooperation Agreement, which entered into force in late 1999, continues to improve the overall maritime security of Costa Rica and serves as an impetus for the professional development of the Costa Rican Coast Guard. Costa Rican law enforcement officials continue to demonstrate growing professionalism and reliability as USG partners in combating narcotics trafficking and dealing with ever-changing drug smuggling methods. The amount of illicit narcotics seized in Costa Rica increased dramatically in 2003, almost doubling in the case of cocaine and more than doubling in the case of heroin. The Government of Costa Rica (GOCR) continued to implement a 2002 narcotics control law that criminalized money laundering and created a Counternarcotics Institute to coordinate the GOCR's efforts in the areas of intelligence, demand reduction, asset seizure, and precursor chemical licensing. Costa Rica is a party to the 1988 UN Drug Convention.

Costa Rica's location astride the Central American isthmus makes the country an attractive transshipment area for South American-produced cocaine and heroin destined primarily for the United States. The difficulty of maritime interdiction in Costa Rican waters is exacerbated by a total maritime jurisdiction that is more than 11 times the size of Costa Rica's land mass. These territorial waters are used for both transshipment of illegal drugs and refueling operations in which fishing vessels re-supply go-fast boats. In 2003, 2660 kilos of cocaine were seized in Costa Rica's Eastern Pacific. Traffickers along northbound maritime routes continued to use routes through Costa Rica's Pacific Exclusive Economic Zone and those further out to sea in the Eastern Pacific. In the last quarter of CY 2003, two seizures of 500 kilos of cocaine, one of 127 kilos and one of 67 kilos, suggest traffickers' efforts to smuggle sizable quantities of cocaine by land, a method that had not been seen in Costa Rica since 1998.

The amount of illicit narcotics seized in Costa Rica increased dramatically in 2003, almost doubling in the case of cocaine and more than doubling in the case of heroin. The GOCR runs an effective airport interdiction program aimed at passengers and the Embassy has worked with its counterparts to extend that success to cargo inspection at the Juan Santamaria International Airport. A similar effort is underway in the seaports of Limon and Caldera; however, clear legal authority for onboard inspection of containers and ships has yet to be established. This legal impediment and a lack of sufficient export control procedures for effective identification and inspection of high-risk cargo continue to present challenges.

Costa Rica has a stringent governmental licensing process for the importation and distribution of controlled precursor and essential chemicals and prescription drugs. Local consumption of illicit narcotics including crack cocaine and “club drugs,” along with the violent crimes associated with such drug use, are growing concerns to Costa Ricans. Costa Rican investigators made two seizures of ecstasy pills in the last quarter of 2003 that were significant by local standards, the first of 211 pills on October 30 and the second of 1051 pills on December 5. These two seizures suggest increased consumption in Costa Rica and the potential use of Costa Rica as a transshipment point for “club drugs.” In September 2003, Costa Rican authorities made the first recorded seizure of indoor hydroponic cannabis in Central America, raising concern over the possible export of high-quality cannabis. The GOCR is directing more resources to address the serious threats posed by narcotics trafficking but budgetary limitations continue to constrain the capabilities of law enforcement agencies.

Policy Initiatives. The 1999 bilateral Maritime Counterdrug Cooperation Agreement and the Coast Guard Professionalization Law passed in 2000 have continued to catalyze the professional development of the Costa Rican Coast Guard. The Agreement, the first comprehensive six-part agreement in the region, has been instrumental in improving the overall maritime security of Costa Rica. The Costa Rican Coast Guard Academy established its permanent home in Golfito on the southwest Pacific Coast in 2002, and has thus far graduated 75 officials. On April 10, nine countries—Costa Rica, the Dominican Republic, France, Guatemala, Honduras, Haiti, the Netherlands, Nicaragua, and the United States—signed the “Agreement Concerning Co-operation in Suppressing Illicit Maritime and Aeronautical Trafficking in Narcotics Drugs and Psychotropic Substances in the Caribbean Area” in San Jose. Subsequently, Jamaica signed, bringing the total number of signatories to ten. While the agreement is not yet in force, the GOCR serves as the agreement's depository. The Costa Rica Counternarcotics Institute does develop an annual counternarcotics plan; however, resource limitations frustrate full implementation of the plan.

Accomplishments. Relations between U.S. law enforcement agencies and GOCR counterparts, including the Judicial Investigative Police Narcotics Section, the Ministry of Public Security Drug Control Police, the Coast Guard, and the Air Surveillance Section, remain close and productive, resulting in regular information sharing and joint operations. Evidence in 2003 of the USG's confidence in GOCR counterparts included the first-ever transfer by the USG to the GOCR, following a seizure on the high seas, of a significant amount of cocaine (1,360 kilograms) for destruction and a defendant for prosecution. In 2003, the Costa Rican Coast Guard, the U.S. Coast Guard and JIATFS conducted one joint counternarcotics operation. The refueling of two Costa Rican patrol craft in blue water made this another successful combined maritime operation and demonstrated again that Costa Rican vessels are a true force multiplier for the U.S. maritime interdiction effort.

Law Enforcement Efforts. The primary counternarcotics agencies in Costa Rica are the Judicial Investigative Police, under the Supreme Court, and the Ministry of Public Security's Drug Control Police. The Judicial Investigative Police operate a small, but highly professional, Narcotics Section that specializes in investigating international narcotics trafficking. The Drug Control Police investigate both domestic and international drug smuggling and distribution, and are responsible for airport interdiction as well as land-based interdiction at the primary ports of entry. Both entities routinely conduct complex investigations of drug smuggling organizations, resulting in arrests and the confiscation of cocaine and other drugs, using the full range of investigative techniques permitted under the country's progressive counternarcotics statutes.

Agents of the Drug Control Police have increased the threat to overland trafficking through the effective use of contraband detectors/density meters at both northern and southern borders, resulting in seizures of cocaine hidden within tractor-trailers. The Drug Control Police achieved a milestone in 2003 by initiating intelligence and enforcement action that resulted in arrests in Costa Rica and New York. The effectiveness of the Costa Rican investigation led to the seizure of six kilograms of heroin and the indictment of 15 individuals in the Southern District of New York. Given the threat posed by trafficking via commercial air cargo and container shipments, increased attention was given in 2003 to training counterparts in the Ministry of Finance's Fiscal Control Police and Customs Agency. Efforts continued in 2003 to link local law enforcement resources with the private sector through the Business Anti-Smuggling Coalition (BASC) program. In September, a Costa Rican BASC member provided information to the Embassy that led to the seizure by U.S. Customs and DEA of 48 pounds of cocaine from a container ship in Ft Lauderdale, Florida.

Corruption. The commitment to combat public corruption reaches to the highest levels of the GOCR. President Pacheco has worked aggressively to deter corruption among public officials. Vice President Saborio leads the National Council on Citizen Security and Participation that is charged with implementation of initiatives that encourage good governance and public sector transparency. The National Commission for the Improvement of Justice Administration is an umbrella organization responsible for promoting anticorruption awareness and transparency principles in the government and private sectors. Its work encompasses projects addressing judicial training and civic education, including instruction on fundamental rights for Costa Rica's indigenous population, human rights, and training programs in prisons. U.S. law enforcement agencies consider the public security forces and judicial officials to be full partners in counternarcotics investigations and operations with little or no fear of compromise to on-going cases. To the best of the United States' knowledge, no senior official of the GOCR engages in, encourages, or facilitates the illicit production or distribution of such drugs or substances, or the laundering of proceeds from illegal drug transactions. In December 2003, the GOCR signed the UN Convention Against Corruption. The Embassy is working with the Ministries of Finance and Public Security to reinforce the commitment against corruption through the enhancement of anticorruption mechanisms at each ministry.

Agreements and Treaties. The six-part bilateral Maritime Counterdrug Cooperation Agreement continues to serve as the model maritime agreement for Central America and the Caribbean. The agreement has promoted closer cooperation in the interdiction of maritime smuggling and permitted the interdiction of 15,903 kilograms of illicit drugs in Costa Rica's Exclusive Economic Zone by U.S Coast Guard and Navy vessels since 1999. Results of the agreement in 2003 include one combined maritime counternarcotics operation, 16 U.S. law enforcement ship visits to Costa Rica in support of Eastern Pacific and Caribbean counternarcotics patrols, and a number of search and rescue cases by USG assets. The United States and Costa Rica have had an extradition treaty in force since 1991. The treaty is actively used for the extradition of U.S. citizens and third-country nationals, but Costa Rican law does not permit the extradition of its own nationals. Costa Rica has ratified the Inter-American Convention Against Corruption and signed the UN Convention Against Corruption. Costa Rica ratified a bilateral stolen vehicles treaty in October 2002. Costa Rica is a party to the 1988 UN Drug Convention, the 1961 Single Convention on Narcotic Drugs, as amended by its 1972 Protocol, and the 1971 Convention on Psychotropic Substances.

Costa Rica and the United States are also parties to bilateral drug information and intelligence sharing agreements dating from 1975 and 1976. Costa Rica is a member of the Caribbean Financial Action Task Force and the Egmont Group. It is also a member of the Inter-American Drug Abuse Control Commission of the Organization of American States (OAS/CICAD). Costa Rica has signed the UN Convention against Transnational Organized Crime, the Protocol to Prevent, Suppress and Punish Trafficking in Persons, and the Protocol against the Smuggling of Migrants, and the Protocol against the Illicit Manufacturing of and Trafficking in Firearms. Costa Rica asserted its leadership on trafficking issues in 2003 by promoting the creation of a regional database to monitor child sexual exploitation through the Regional Commission on Migration.

Cultivation/Production. Marijuana cultivation is relatively small-scale and generally found in remote mountainous areas near the Panamanian border, in the Caribbean region near Limon and Talamanca, and the Valle del General on the southern Pacific coast. Such cultivation is sometimes intermixed with legitimate crops. Joint eradication operations are periodically carried out under the auspices of “Operation Central Skies,” utilizing U.S. Army air assets. Over six million marijuana plants have been destroyed to date during these operations. In 2003, the Costa Rican Air Section and the Drug Control Police demonstrated an ability to conduct eradication operations independent of USG assistance, while seizing 448,000 plants. The quantity of plants eradicated suggests that marijuana is not being exported from Costa Rica. The first-ever seizure of hydroponic marijuana in 2003 created a concern that Costa Rica could become a distribution point for this drug. Costa Rica does not produce other illicit drug crops.

Drug Flow/Transit. The last half of 2003 witnessed a return to sizable overland shipments transiting Costa Rica in truck compartments, dump truck loads and car compartments that were characteristic of trafficking trends before 1999. GOCR officials have made numerous seizures at the international airport in San Jose, typically from departing passengers. Along with traditional body carrying methods, counternarcotics law enforcement personnel have uncovered some novel modes of concealment. The recent trend of increased trafficking of narcotics by maritime routes has continued, with indications that maritime traffickers solicit Costa Rican-flagged fishing vessels to serve as refueling vessels for northbound go-fast boats in the Costa Rican exclusive economic zone. Costa Rican internal drug use is mostly limited to marijuana, cocaine, and crack, but ecstasy is increasing in popularity among young adults. LSD and heroin have also been detected.

Domestic Programs (Demand Reduction). Costa Ricans have become increasingly concerned over local consumption, especially of crack cocaine and ecstasy. Abuse appears highest in the Central Valley (including the major cities of San Jose, Alajuela, Cartago, and Heredia), the port cities of Limon and Puntarenas, the north near Barra del Colorado, and along the southern border. The Prevention Unit of the Costa Rica Counternarcotics Institute oversees drug prevention efforts and educational programs throughout the country, primarily through well-developed educational programs for use in public and private schools and community centers. In November 2003, the Institute launched a country-wide campaign against ecstasy use with print, television and radio spots; web site information and training programs involving community leaders in contact with the target audience. The Institute and the Ministry of Education distribute demand reduction materials to all public school children. The Costa Rican Drug Abuse Resistance Education (DARE) Foundation, modeled after its U.S. counterpart, conducts drug awareness programs at over 500 public and private schools.

U.S. Policy Initiatives. The principal U.S. counternarcotics goal in Costa Rica is to reduce the transit of drugs to U.S. markets. Means of achieving that goal include: reducing the flow of illicit narcotics through Costa Rica; enhancing the effectiveness of the criminal justice system; reducing the use of Costa Rica as a money laundering center by strengthening enforcement of controls against such activities and encouraging the enactment of stricter controls on offshore banking; supporting efforts to locate and destroy marijuana fields; and the continued targeting of high level trafficking organizations operating in Costa Rica. Specific initiatives include: continuing to implement the bilateral Maritime Counterdrug Cooperation Agreement; enhancing interdiction of drug shipments by improving the facilities and training personnel at the northern border crossing of Penas Blancas; enhancing the ability of the Air Section of the Public Security Ministry to respond to illicit drug activities by providing equipment and technical training; improving law enforcement capacity by providing specialized training and equipment to the Judicial Investigative Police Narcotics Section, the Drug Control Police, the Intelligence Unit of the Costa Rica Counternarcotics Institute, the National Police Academy, and the Customs Control Police; and increasing public awareness of dangers posed by narcotics trafficking and drug use by providing assistance to Costa Rican demand reduction programs and initiatives. The single formal border crossing between Costa Rica and Nicaragua at Penas Blancas provides a unique opportunity for law enforcement officials to reduce northbound overland cocaine trafficking through Central America via the Pan-American Highway. There are no secondary crossing points or alternative routes on the Costa Rican-Nicaraguan border to bypass this main checkpoint, except for routes that require use of a four-wheel drive vehicle. The U.S. Embassy is nearing completion of an enhanced port-of-entry/exit facility for greater border control. This facility will have the potential for future expansion to allow for southbound inspections seeking traffic in illegal arms, currency, precursor chemicals and stolen equipment. This facility is expected to be completed in January 2004. A Mobile Enforcement Team (MET) possessing specialized vehicles and equipment was inaugurated in 2003. The team—an interagency effort of canine units, drug control units, customs police and the Counternarcotics Institute—will supplement interdiction efforts at the inspection station. In November 2003, the MET participated in the first joint deployment of MET vehicles in a cross-border operation with Nicaraguan counterparts. The U.S. Customs Service and the DEA will continue to train MET officers.

Bilateral Cooperation. The Department of State allocated $1.9 million appropriated under Title III, Chapter 2, of the Emergency Supplemental Act, 2000, as enacted in the Military Construction Appropriations Act (P.L. 106-246) for expanded assistance to the Costa Rican Coast Guard consistent with the MOU on Maritime Assistance and the Maritime Agreement. This assistance is designed to enhance Costa Rican and U.S. maritime security through the development of a professional Coast Guard. In 2003, USG assistance provided numerous U.S. Coast Guard training programs, over $100K in maintenance and spare parts for the three U.S. donated 82-ft patrol boats, completed construction on a Coast Guard Station in Quepos on the Pacific coast, and continued funding support for a U.S. Coast Guard Advisor and a contract maritime engineering advisor position. The U.S. also provided increased information sharing on suspect vessel and air traffic movements near Costa Rica. The U.S. Embassy hosted a series of seminars on the law of maritime interdiction and boarding procedures that brought together Costa Rican Coast Guard officers, prosecutors and judges. The Embassy used the same inter-agency approach to provide a training series on law enforcement techniques related to border control and cargo inspection to five police organizations. Increased emphasis on operations that combine the forces of various law enforcement entities is anticipated in the next year. The United States acquired upgraded computers, peripheral equipment, and software for the Ministry of Public Security's Drug Control Police, Air Surveillance Section, and Migration Section; the Judicial Investigative Police Narcotics Section; the Public Prosecutor's Economic Crimes Section and Sex Crimes Section; and the Costa Rica Counternarcotics Institute's Financial Analysis Unit, Intelligence Unit and Precursor Chemicals Unit. Surveillance Vehicles were purchased for the Drug Control Police and Judicial Investigative Police Narcotics Section. A training package, four canines and a transport van were donated to the Ministry of Public Security's Canine Section.

The Road Ahead. The U.S.-sponsored, $2.2 million Costa Rican Coast Guard Development Plan was completed in 2003. Subject to the availability of funds, the United States will continue to provide technical expertise, training, and funding to professionalize Costa Rica's maritime service and enhance its capabilities to conduct U.S. Coast Guard-style maritime law enforcement, marine protection, and search and rescue operations within its littoral waters in support of the bilateral Maritime Counterdrug Cooperation Agreement. Funding will also be sought for a Coast Guard Advisor. The United States seeks to build upon the on-going successful maritime experience by turning more attention and resources to land interdiction strategies, including expanded coverage of airports and seaport facilities. The centerpiece of this expanded focus will be the inauguration of the Penas Blancas Inspection Station. In conjunction with the Inspection Station, GOCR counternarcotics agencies' interdiction capabilities will be enhanced through the continued in-country presence of a USG technical advisor from the U.S. Customs Service. The United States will cooperate with the GOCR in its efforts to professionalize its public security forces and implement and expand controls against money laundering.

El Salvador

El Salvador is a transit country for narcotics, mainly cocaine and heroin. In 2003, the Government of El Salvador (GOES) passed a new counternarcotics law. The Forward Operating Location (FOL) facilities were expanded, and Salvadoran law enforcement cooperated with U.S. authorities on cases that led to the indictment in the U.S. of six major foreign drug traffickers. The National Civilian Police (PNC) increased their seizures of heroin. While El Salvador is not a major financial center, assets forfeited and seized as the result of money laundering or other crimes amounted to $4.23 million dollars in 2003. Salvadoran authorities complied with resolutions regarding terrorist assets and did not find assets from individuals or entities on the terrorism lists.

Located in the isthmus between the U.S. and the major drug producing nations, El Salvador is a transit point for trafficking. Cocaine and heroin are the most commonly trafficked drugs. Climate and soil conditions are unfavorable for coca cultivation. Precursor chemical production, trading, and transit are not significant problems.

Policy Initiatives. According to the Salvadoran Anti-Drug Commission (COSA), progress in implementing the 2002-2008 National Anti-Drug Plan, the counternarcotics master plan of the Salvadoran Government (GOES), was made in the categories of 1) prevention, treatment, rehabilitation, and social reintegration; 2) research, information, and statistics; 3) substance control; and 4) law enforcement. In addition, the Salvadoran Legislature passed a new counternarcotics law.

Accomplishments. A significant development in achieving or maintaining compliance with the goals and objectives of the 1988 UN Drug Convention was the passage of a new counternarcotics law, which came into effect on November 7, 2003. The new law contains a stronger and more well-defined conspiracy provision, increases the penalties for a broad range of drug-related offenses, and includes additional aggravating circumstances that can further enhance penalties. It also punishes simple possession of illegal drugs and better defines procedures for the use of undercover agents, undercover buys, controlled deliveries, and confidential informants. In addition, the new law includes detailed procedures for the immobilization, seizure, and forfeiture of assets, including the establishment of a special fund for forfeited drug-related assets to be used for law enforcement, drug treatment, and drug prevention purposes. Another significant legislative development was the October 9, 2003 passage of an antigang law that led to the arrest of some gang members with connections to drug-trafficking.

Other significant developments included the establishment of an inter-agency working group to exchange information and coordinate actions to control the import and export of chemical substances and precursors as well as to respond to questionnaires and surveys required by the International Narcotics Control Board (INCB).

COSA points out its accomplishments in the following areas. In the area of prevention, strides were made including: the development of drug-prevention plans at the municipal level, celebration of the first-ever National Anti-Drug Week, the formation of youth counternarcotics coalitions in the country's 14 departments, and presentation of drug-prevention training courses and workshops.

Major achievements in the research, information and statistics category included the initiation of the second phase of the Inter-American System of Uniform Data on Drug Consumption survey, submission of quarterly reports on money-laundering and drug-related arrests, and the completion of a drug survey in 19 prison facilities.

Under the substance control category, major achievements included the creation of a coordination group for the auditing and control of substances at the ports of entry and holding two training workshops for 70 Customs and police personnel.

In addition, the United Nations Office on Drugs and Crime and the Inter-American Drug Abuse Control Commission of the Organization of American States (OAS) held a mock money-laundering trial. El Salvador joined the Caribbean Financial Action Task Force, implemented the PNC's strategic counternarcotics plan, and reinforced security and control in the customs houses at the ports of entry.

Instances of regional counternarcotics cooperation included: the creation of a Permanent Central American Commission for the Eradication of the Production, Trafficking, Consumption, and Illicit Use of Drugs and Psychotropic Substances in Honduras; the establishment of a regional office of the International Criminal Police Organization in El Salvador; the PNC's continuing implementation of the Regional Plan for Reducing Drug Demand and Supply; a database for the exchange of information with local and international authorities regarding money laundering; and the operation of the Joint Information Coordination Center (JICC) which coordinates regional counternarcotics investigations and operations.

The GOES responded to the annual questionnaire of the United Nations International Drug Control Program, provided training to forensic laboratory personnel, held a training seminar on improving the quality of analysis regarding seized drugs provided to the courts, sent delegates to the Second Sub-regional Workshop of the Coalition of Central American Youth Organizations for the Prevention of Drug Abuse and HIV/AIDS, and participated in the School Prevention Seminar for the development of national plans for drug prevention, rehabilitation, and social reintegration.

The obstacles that prevented El Salvador from fully achieving all of the objectives of the 1988 UN Drug Convention included legal shortcomings, limited resources, and the consequent need to seek additional support from international organizations to carry out programs that would reach those objectives.

The new FOL facilities, located within the Salvadoran Air Force Base at Comalapa International Airport, were inaugurated on November 13, 2003, and include expanded office, storage, runway, and classified briefing spaces.

Law Enforcement Efforts. Law enforcement efforts in 2003 were adequate, given resource constraints and legal shortcomings, and in some areas represented an improvement over past years. These efforts were heavily focused on priority targets of mutual interest to both the U.S. and Salvadoran governments. Salvadoran efforts in this area led directly to the U.S. indictment of six major foreign drug traffickers, two of which were successfully expelled to the United States.

Salvadoran law enforcement efforts are still hindered by constitutional prohibitions on investigative tools such as wiretapping. Salvadoran authorities have encountered difficulties obtaining judicial authorization to destroy clandestine airstrips situated on private property and used by drug traffickers. The GOES gives a very high priority to counternarcotics law enforcement, but its available resources are inadequate to achieve all of its counternarcotics objectives. This is mainly because El Salvador is a poor country whose resources are targeted to other national priorities. Nevertheless, in 2003, the PNC's Anti-Narcotics Division (DAN) seized 17 kilograms of cocaine, less than 1 percent of last year's record haul of 2,068 kilograms, and slightly less than the 18 kilograms seized in 2001. This result reflects the somewhat anomalous single capture of 2,000 kilograms of cocaine in 2002 and, probably, traffickers' reluctance to risk sending large shipments by way of El Salvador given the presence of the FOL.

In 2003, the DAN also seized about 22.1 kilograms of heroin, an amount more than 66 percent greater than the 13.2 kilograms seized in 2002 and more than twice as much as the 10.5 kilograms seized in 2001. There were 1,390 drug arrests in 2003, 4 percent more arrests than the 1,338 recorded in 2002, but 66 percent fewer than the 4,003 in 2001. This arrest level reflects the DAN's change of focus from arresting small drug dealers to investigating major drug traffickers. However, like the rest of the PNC, the DAN suffers from a lack of resources. U.S. aircraft flying out of the FOL played a significant role in the seizure of more than 39 tons of cocaine, mostly on the Pacific high seas.

The Salvadoran Navy's ability to patrol the Pacific coast was enhanced by the transfer of ex-U.S. Coast Guard vessels and boarding equipment in 2001. However, the Salvadoran Navy has been not yet been able to take full advantage of these new acquisitions in 2003 because of a lack of funds for fuel and maintenance.

Corruption. With U.S. Government (USG) assistance, the GOES drafted a code of government ethics and proposed an Office of Government Ethics to prevent, identify, and control corruption among public officials. A bill to establish the Office within the Court of Accounts (the Salvadoran equivalent of the Inspector General's Office) was submitted to the Legislative Assembly. The PNC's Internal Affairs Unit and the Attorney General's Office (FGR) investigate and prosecute police officers for corruption and abuse of authority. The USG provided specialized training in anticorruption to police, prosecutors, and judges.

The new drug law's provisions criminalizing drug conspiracies, preparative acts to commit drug offenses, cooperation in trafficking, and being an accessory to such offenses could apply to a corrupt official involved in drug trafficking. Moreover, using one's official position in relation to the commission of a drug offense is an “aggravating circumstance” that can result in an increased sentence of up to one-third of the statutory maximum. Furthermore, Salvadoran anticorruption laws apply broadly to corrupt acts, including accepting or receiving money or other benefits in exchange for an act or omission in relation to one's official duties, whether or not such bribery is drug-related.

The FGR's Anti-Corruption Unit is investigating several important cases of public corruption, including one involving the public water utility (ANDA) in a multimillion-dollar fraud. Although none of these cases is directly related to narcotics, they show that the GOES is making efforts to enforce its laws against corruption.

As a matter of policy, the GOES does not encourage or facilitate illicit production or distribution of narcotics or psychotropic drugs or other controlled substances, or the laundering of proceeds from illegal drug transactions. No senior official is known to engage in, encourage, or facilitate the illicit production or distribution of such drugs or substances, or the laundering of proceeds from illegal drug transactions. The GOES has no INL-provided aircraft, nor has it misused any other equipment purchased with INL funds.

El Salvador is a party to the Inter-American Convention Against Corruption. Consistent with the country's obligations under that Convention, the law criminalizes soliciting, receiving, offering, promising, and giving bribes, as well as the illicit use and concealment of property derived from such activity.

Agreements and Treaties. The current extradition treaty between the United States and El Salvador does not provide for the extradition of nationals. Narcotics offenses are covered as extraditable crimes by virtue of the 1988 UN Drug Convention, to which El Salvador is a party. Negotiations for a new, more comprehensive extradition treaty began in 2001 but are still in progress. El Salvador is a party to the 1971 UN Convention on Psychotropic Substances and the 1961 UN Single Convention on Narcotic Drugs as amended by the 1972 Protocol.

There is no bilateral mutual legal assistance treaty between El Salvador and the United States. But, mutual legal assistance in narcotics cases is available to the United States and El Salvador under Article 7 of the 1988 UN Drug Convention. Also, El Salvador has signed the Inter-American Convention on Mutual Assistance in Criminal Matters which, once ratified by El Salvador, will provide additional tools to facilitate legal cooperation between the United States and El Salvador. There is no bilateral precursor chemical agreement between El Salvador and the United States. Formal negotiations continue on a comprehensive maritime counternarcotics cooperation agreement, and the USG has offered an interim step of an International Maritime Interdiction Support Agreement that would allow expeditious movement of detainees and samples of contraband seized at sea to move through Salvadoran territory to the U.S. for prosecution. Annually, the two governments sign agreements under which the USG provides counternarcotics assistance to El Salvador.

El Salvador’s Legislative Assembly approved the UN Convention against Transnational Organized Crime and its protocols on November 12. El Salvador is a signatory to the Central American convention for the Prevention of Money Laundering Related to Drug-Trafficking and Similar Crimes. There is a Central American Mutual Legal Assistance Agreement between all Central American countries and Panama. The Protocol against the Illicit Trafficking of Migrants by Land, Sea, and Air was approved by the Legislative Assembly on November 17. The Protocol to Prevent, Suppress, and Sanction Trafficking in Persons, Especially Women and Children, was approved by the Legislative Assembly on November 18. The Protocol Against the Manufacture and Illicit Trafficking of Firearms, their Parts, Components, and Munitions was approved by the Legislative Assembly on October 23.

Cultivation/Production. Climate and soil conditions do not favor the cultivation of coca plants. Small quantities of cannabis are produced in the mountainous regions along the border with Guatemala and Honduras. However, the cannabis is of poor quality and is consumed domestically. There were no gains or setbacks in controlling cannabis cultivation and production because the small quantity and poor quality of the crop does not justify the expenditure of a systematic campaign against it.

There is no local methodology for determining cannabis crop size and yields. Cannabis is detected thanks to tips, routine foot patrols, and air surveillance.

Drug Flow/Transit. Cocaine from Colombia typically transits El Salvador via the Pan-American Highway and via maritime routes off the country's Pacific coast. Heroin from Colombia usually goes through Panama, then via courier on a commercial passenger flight to El Salvador to another commercial flight to Honduras and then by bus to Guatemala. The Pan-American and Littoral Highways are the land routes preferred by traffickers. As in the rest of Central America, there has been a notable increase in the amount of heroin transiting both the international airport and land ports of entry. Both heroin and cocaine also transit by sea off the Salvadoran coast as well as through Salvadoran airspace.

Domestic Programs (Demand Reduction). In counternarcotics education efforts, the Anti-Drug Foundation of El Salvador (FUNDASALVA), with funds provided by the Madrid City Council, has worked with students, parents, and public schools to teach drug prevention. Together with the Ministry of Education, FUNDASALVA has also worked on a prevention program in high-risk zones that benefited 6,250 students. FUNDASALVA, public and private institutions, and the private sector have also been developing programs for a drug-free workplace. In addition, FUNDASALVA provides information about the effects of drugs to specific populations, especially students. The PNC draws on the U.S. Drug Abuse Resistance Education (DARE) program for its counternarcotics presentations at schools. The Ministry of Education uses the U.S. Military Information Support Training (MIST) program to inform elementary school children of the dangers of drugs.

FUNDASALVA also runs a comprehensive drug treatment and rehabilitation program. The Psychiatric Hospital also runs a program sponsored by the Public Health and Social Assistance Ministry that focuses on rehabilitation and the training of facilitators among the recovered addicts. Other less comprehensive rehabilitation programs exist, usually faith-based and run by ex-addicts.

The exact magnitude of the country's drug abuse problem is unknown, but a comprehensive study of the problem funded by the USG is being organized by FUNDASALVA. Relative to the presumed size of the at-risk and addicted populations, demand reduction programs are inadequate.

Policy Initiatives. The United States aims to assist in the professional development of the GOES' law enforcement agencies, increase their ability to combat money laundering and public corruption, and ensure a transparent criminal justice system.

Bilateral Cooperation. The United States provided funding for operational support for Grupo Cuscatlan and the high-profile crimes unit (GEAN) within the DAN, a mobile ion-scan machine and essential equipment for border police. In addition, USG funds were used to provide a laser tattoo-removal machine (to reduce drug consumption and crime), a comprehensive national study of drug use, an antitrafficking-in-persons public awareness campaign, and for drug treatment and rehabilitation in prisons. The USG also funded training and travel related to airport security, money laundering, maritime boarding operations, and antigang measures. DEA officers work closely with the DAN on issues of mutual concern.

Road Ahead. The USG will continue to provide operational support to Salvadoran law enforcement institutions, anti-money-laundering training, and essential investigative tools. In partnership with the GOES, the United States plans to finance the construction of a vehicle inspection facility, new headquarters for the JICC, and new kennels for the DAN's narcotics detection canine unit.

Guatemala

Guatemala remains a major drug-transit country for cocaine, heroin and illicit narcotics en route to the United States and Europe. In spite of improvements in the Government of Guatemala’s (GOG) counternarcotic efforts in 2003, large shipments of cocaine continue to move through Guatemala by air, road, and sea. Guatemala’s de-certification with a national interest waiver in early 2003 spurred the GOG to dramatically increase their efforts against narcotics trafficking; these efforts led to Guatemala’s recertification in September.

The long-standing problems of acute lack of resources, weak leadership, widespread corruption and frequent personnel turnover continue to affect GOG ability to deal with narcotics trafficking and organized crime. However, there is a fair list of accomplishments. Most notably, cocaine seizures more than tripled compared to 2002, thereby returning to pre-2000 levels. Many of these seizures were made as a direct result of improved GOG police/military coordination, and cooperation with USG agencies in the interdiction of suspect aircraft violating Guatemalan airspace. Currency seizures totaled over $20 million, including $14.5 million seized from one drug trafficking organization, the largest bulk seizure of currency in Guatemala’s history.

The GOG also made positive steps to pursue corrupt police: two cases involving 24 former members of the now defunct National Civilian Police’s (NCP) Anti-Narcotics Operations Department (DOAN) were sentenced to prison for the theft of cocaine from the drug warehouse and for the torture and killing of two prisoners.

The newly created NCP’s Anti-narcotics Information and Analysis Service (SAIA) has been very responsive to U.S. training and technical assistance. The USG will continue to assist in the professionalization of the SAIA, train prosecutors and courts in order to enhance investigations, and enhance interdiction and eradication operations. The GOG recognizes that there is a growing domestic consumption problem and supports an active demand reduction program. After eight years of negotiations, a comprehensive six-part maritime counternarcotics agreement was signed and ratified; however, it is not yet in force, as we are awaiting the transmittal of the relevant documents from the GOG. Guatemala is a party to the 1988 UN Drug Convention and the OAS Inter-American Anti-Corruption Convention.

Guatemala continues to be the preferred staging point in Central America for onward shipment of cocaine to the United States. USG estimates indicate that up to 400 metric tons of cocaine are shipped annually through, over and around the Central American corridor to Mexico and the United States. Guatemalan law enforcement agencies interdicted 8.8 metric tons of cocaine in 2003. This was a significant increase from the previous year’s 2.4 metric tons. Narcotics traffickers continue to pay for transportation services with drugs, which enter into local markets, leading to an increase in domestic consumption and crime.

While Guatemala has enacted and implemented a law criminalizing the laundering of proceeds of crime, full monitoring has not yet been ensured and the country has not yet been removed from the list of countries that the Financial Action Task Force (FATF)on Money Laundering considers uncooperative in efforts to counter money laundering. The FATF is planning a visit to Guatemala in early 2004 to consider removing Guatemala from the list of uncooperative nations.

Guatemala grows minimal quantities of opium poppy. Marijuana is also grown, but only for local consumption. Apart from crack and marijuana, it is unknown if any quantities of illicit narcotics or club drugs are processed in Guatemala. Diversion of precursor chemicals is, at present, a non-quantified problem in Guatemala; the registration and control of these substances has just begun. With the enactment in 1999 of precursor chemical control legislation, and the approval of implementing regulations this year, the legislation is now a potentially useful law enforcement tool.

Policy Initiatives. In 2003, Guatemala signed three Letters of Agreement (LOAs) amendments with the USG on counternarcotics and demand reduction. The GOG also developed and approved an updated counternarcotics master plan for the period 2003-08, replacing the plan that had been in force for the previous five- year period.

Following their decertification with a national interest waiver, the GOG organized a multi agency-working group to focus their counternarcotics efforts. As a result, progress was made on all nine benchmarks and Guatemala was recertified in September. We will urge the new government taking office in January 2004 to retain the working group as an effective means to focus GOG interagency efforts and coordination with the USG.

Guatemala’s Congress ratified a comprehensive six-part maritime agreement with the U.S. during 2003, and also issued implementing regulations for the control of precursor chemicals.

No progress was made on implementing the legal and regulatory changes necessary for Guatemala to comply with the terms of the Inter-American Convention Against Corruption that was signed in 2001. Guatemala signed the UN Convention Against Corruption.

Illicit Cultivation, Production and Distribution. Guatemala has significant cannabis cultivation, all of which is consumed locally. There is minimal opium poppy cultivation. The GOG continues to have an active manual eradication program for cannabis and poppy. Eradication of cannabis plants continues to be robust, with more than a 40 percent increase in eradication from the previous year. Over 625,602 marijuana plants were eradicated in the remote northern area of the country during 2003.

Past seizures at processing labs indicate that shipments of cocaine transiting Guatemala are reprocessed to reduce purity, prior to repackaging for onward shipment to the U.S.

Sale, Transport, and Financing. Guatemala more than tripled total cocaine seizures in 2003. Seizures were made from land, air and sea transportation.

The Pan-American Highway is a major conduit for drugs traveling north to Mexico and eventually the U.S. The trend continued of individuals transiting Guatemala being arrested in U.S. airports with cocaine and heroin. This year the trend for delivery to Guatemala shifted toward the employment of small and medium sized aircraft; the use of go-fast boats and commercial fishing vessels declined but continues.

Commercial containers, both on land and through seaports, continue to offer the best opportunity for smuggling larger quantities of drugs through Guatemala’s ports of entry. Unfortunately, this is the area that has had the least amount of interdiction success. Guatemala’s Port Security Program (PSP) is trying to improve counternarcotics interdiction at the seaports. PSP is self-financed by a fee levied on shipping companies and provides monetary and technical assistance to the SAIA agents who operate in the ports. The USG provides technical assistance, logistical support, and training. Seizures have been very low due to continuing corruption in the seaports.

ONDCP estimates that, in some transactions, up to 33 percent of the cocaine transiting north toward the U.S. may be used as payment for the services of local smuggling groups. Most of the cocaine is sold to other traffickers moving cocaine to the U.S., while a portion is sold locally to users in Central American countries. This is a major factor behind increased domestic consumption and the violent crime committed by drug trafficking gangs.

Law Enforcement and Transit Cooperation. Guatemalan law enforcement representatives work with U.S. personnel and organizations to curtail the flow of drugs through Guatemala in instances when the USG can provide intelligence, funding and technical assistance. U.S. law enforcement agencies continue to have collaborative relationships with Guatemalan law enforcement authorities and Guatemala exchanges limited information and maintains links with other Joint Intelligence Coordination Centers (JICCs) in South and Central America.

Guatemala actively participated in the Central Skies combined counternarcotics campaign plan that included DEA and the U.S. Army. Guatemala has also been very cooperative in allowing the U.S. permission to enter their airspace and territorial waters in connection with counternarcotics missions.

Demand Reduction. The GOG continues to support counternarcotics education and rehabilitation programs pursuant to the country master plan. Guatemala’s demand reduction agency, SECCATID, implemented a variety of projects, including the first nationwide comprehensive drug consumption survey. The study found that in the last five years alcohol use has increased by 50 percent, cocaine by 40 percent, marijuana by 55 percent, and tranquilizers (primarily by young females) 380 percent.

Through the National Program of Preventive Education, SECCATID trained 1,138 instructors this year throughout the country using the “train the trainer” concept with the participation of the Ministries of Health and Education. SECCATID also provided training and education to parents, students and teachers. SECCATID also provided training to NGO reps, private company reps, soldiers, prison guards, and adults. The DARE program provided training to students and teachers. In 2003, SECCATID developed and distributed counternarcotics educational materials, including pamphlets, t-shirts and caps and school items, 50,000 school agendas, 60,000 notebook dividers, and with drug prevention messages.

Law Enforcement Efforts. In addition to the seizures described above, GOG law enforcement scored some notable successes during 2003. There has been a marked improvement in the ability of the GOG to react to incoming suspect aircraft, due to close cooperation between the USG and the Guatemalan Air Force (GAF). The GAF provides, when it can, air assets for interdiction missions and airlift for police and prosecutors conducting drug interdiction and eradication operations. Aging aircraft and lack of money for fuel continue to be constraints.

The SAIA has the potential to become a credible threat to narcotics trafficking. However, GOG law enforcement agencies must function with limited resources, as the GOG is having trouble paying salaries and utilities for all of its agencies. Significant resources, training and support from the USG will be needed to prepare and support the GOG to effectively engage in counternarcotics operations, particularly against major organized crime figures.

As in pervious years, success in prosecuting major narcotics traffickers has been limited. The Public Ministry’s narcotics prosecutors receive USG training and assistance, and continue to try cases and achieve convictions. However, corruption, intimidation, lack of resources in the judiciary, as well as an absence of criminal conspiracy laws in Guatemala, are important reasons for the lack of success in prosecuting and convicting major traffickers.

Widespread corruption, high turnover of law enforcement personnel and poor leadership also frustrate GOG law enforcement efforts. During the Portillo administration, there were four Ministers of Government, seven Directors of the National Civilian Police (PNC), and eleven different directors of the DOAN/SAIA. This constant turnover made continuity for operations and investigations impossible.

Corruption. Corruption remains the largest single obstacle to overall efficiency of all USG sponsored programs in Guatemala. Transparency International’s August 2003 rankings listed Guatemala as one of 34 out of 133 countries where corruption is perceived to exist among public officials and politicians. There are frequent allegations of police, prosecutors, and judges being corrupt. High levels of impunity and intimidation exacerbate the problem.

The GOG is making efforts against corruption. Currently, new entries to the SAIA undergo a background investigation, polygraph exam, and urinalysis testing. On average, this process eliminates in excess of 60 percent of new candidates. This program has been institutionalized and extended to the Anti-Corruption, Money Laundering and Narcotics prosecutors’ offices and includes the periodic re-testing of all active members of the SAIA.

The GOG also aggressively pursued corrupt police: eight members of the now-defunct National Civilian Polices Anti-Narcotics Operations Department (DOAN) were each sentenced to 16 years imprisonment for the theft of cocaine from the drug warehouse. In another case, 16 former members of the DOAN were each sentenced to more than 25 years in prison after their convictions for the torture and killing of two suspects in an effort to steal 2000 kilos of cocaine. Also during the year, 11 police were arrested for attempting to steal 10 kilos of cocaine from the drug warehouse and are expected to be tried during 2004. These arrests were made as a result of improved accountability procedures instituted by the SAIA at the drug warehouse. In compliance with one of the recertification benchmarks, the GOG also inventoried and destroyed all drugs seized before 1999. Newly seized drugs are being destroyed in an expeditious fashion. The USG has assisted the SAIA in developing written procedures for the storage and destruction of seized drugs, implementing new security measures to protect seized drugs, and providing some minor physical upgrades.

Finally, several high-level figures, including a congressman, were charged and arrested this year for theft of social security funds.

Agreements and Treaties. Guatemala is a party to the 1961 UN Single Convention and its 1972 Protocol; the 1971 UN Convention on Psychotropic Substances; the 1988 UN Drug Convention; the Central American Commission for the Eradication of Production, Traffic, Consumption and Illicit Use of Psychotropic Drugs and Substances; and the Central American Treaty on Joint Legal Assistance for Penal Issues. Guatemala has ratified the UN Convention Against Transnational Organized Crime.

Guatemala has also signed bilateral counternarcotics agreements, including information exchanges, with Mexico (1989), Venezuela (1991), Argentina (1991), Colombia (1992), Ecuador (1992), Peru (1994), and Spain (1999).

While most GOG law enforcement efforts have been consistent with the goals and objectives of the 1988 UN Drug Convention, some aspects of the Convention, such as the provisions on extradition, have not been codified into law. The extradition treaty between the GOG and the USG dates from 1903. A supplementary extradition treaty adding narcotics offenses to the list of extraditable offenses was adopted in 1940. When a Guatemalan citizen is involved, an extradition request will usually involve a significant expenditure of effort and time due to the required legal procedures. U.S. citizen fugitives are often expelled to U.S. custody on the basis of violations of Guatemalan immigration laws, a much shorter process. During 2003, a long-standing request for extradition of a Guatemalan citizen wanted for a double homicide in the U.S. was completed. There are currently 15 outstanding extradition requests; three are in jail in Guatemala pending judicial processing. In December the GOG signed the OAS multilateral Mutual Legal Assistance Treaty, to which the U.S. is a party.

Bilateral Cooperation. The USG supports a wide range of law enforcement assistance and counternarcotic programs in Guatemala. The USG works with the office of the Vice President to support Guatemala’s demand reduction agency, SECCATID, to provide technical assistance in education, training and public awareness programs.

The USG also works with the Public Ministry and the Attorney General to support three task forces dealing with narcotics, corruption and money laundering investigations. This cooperation takes the form of training, technical and logistical support on case management and specialized legal subjects.

The USG supports the specialized drug police (the SAIA) through an agreement with the Ministry of Government. This support is designed to create a professional and capable force through training and development of infrastructure for units involved in counternarcotics operations.

An important part of this program is the Regional Anti-Drug School. The school primarily teaches the basic entry course for new SAIA agents, narcotics investigations and canine narcotics detection. They also offer regional courses in polygraph, false documents, intelligence analysis, and canine explosive detection, among others. This year the school had student participation from Bolivia, Colombia, Venezuela, Uruguay and all of Central America.

Policy Initiatives and the Road Ahead. U.S. strategy in Guatemala continues to focus on strengthening the GOG law enforcement and judicial sector through training, technical assistance, and the provision of equipment and infrastructure, especially for the units directly involved in combating narcotics trafficking and other international organized criminal activity that directly affects the U.S.

Special emphasis is placed on management skills, leadership, human rights, investigative techniques, and case management issues.

The U.S. strategy also is aimed at reducing the level of corruption in Guatemala by implementing training, education, and public awareness programs.

Future efforts will focus on investigations, interdiction, corruption, money laundering, task force development, and successfully implementing the maritime agreement. The USG will also continue to assist the GOG in improving the successful Regional Counternarcotics Training Center.

As a result of reorganization, the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs (INL) will assume responsibility for the Department of Justice International Criminal Investigation Training Assistance Program (ICITAP) in Guatemala. This program which will continue to focus on law enforcement areas not specifically related to narcotics trafficking, such as the unification of police and prosecutor forensic laboratories, establishment of an Internal Affairs Unit in the Public Ministry, computerization of police case files, and the continued development of a model precinct that includes offices for prosecutors and judges to increase successful case investigation and closure.

Honduras

The transshipment of cocaine through Honduras by air, land, and maritime routes continued, but with significant disruption in 2003. Overall, seizures in Honduras were higher than the past five years combined. Corruption within the police, Public Ministry and the judiciary tempered some of the law enforcement successes. The Government of Honduras (GOH) moved forward with the implementation of the new Money Laundering Law, passed in 2002.

The National Council for the Fight Against Drug Trafficking renewed its commitment to lead the country's counternarcotics efforts. The Supreme Court operated with greater independence, but remained susceptible to political pressures. Funds to implement the approved counternarcotics plan were severely limited. Even though the Ministry of Public Security (which includes all police) and the Honduran Armed Forces took a more active role in counternarcotics operations, the Public Ministry did little to prosecute high-level suspects or dispose of seized assets. Honduras is a party to the 1988 UN Drug Convention.

Honduras’s primary drug problem stems from the movement of drugs, particularly, cocaine, via air, land, and maritime routes through its territory. There are direct air and maritime links to U.S. cities and the Pan-American Highway crosses southern Honduras. While the Honduran police and Honduran Navy lack sufficient maritime assets to comprehensively attack drug trafficking along its north coast, there was nonetheless a significant increase in drug seizures this year. Despite the recent passage of a broader money laundering law, money laundering in Honduras remains a serious concern. Honduras is not a significant producer of drugs.

Policy Initiatives. In April 2003, the Government of Honduras launched a joint police and military counternarcotics effort to thwart the transit of drugs along its north coast and southern borders. The effort included increased interdiction and other law enforcement initiatives to discourage traffickers from using Honduras as a transit point. A new Pan-American Highway checkpoint, manned by the Honduran Frontier Police, provided a deterrent to the flow of narcotics into Honduras from its southern border with