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International Narcotics Control Strategy Report, 1998
Released by the Bureau for International Narcotics and Law Enforcement Affairs,
U.S.Department of State 
Washington, DC, February 1999


CAMBODIA

I. Summary

Cambodia is not a major producer of narcotics or a center for narcotics-derived
money laundering, although reports that narcotics proceeds are in fact laundered
there persist. Huge amounts of marijuana are cultivated for export, reportedly in
Koh Kong, Preah Vihear, Banteay Meanchey, Kampong Cham, Kratie, and Stung Treng
provinces. Marijuana production and trafficking is not thought to have a major
effect on the U.S. The country's principal involvement in the international
narcotics trade is as a transit route for Southeast Asian heroin to overseas
markets, including the United States. There are numerous reports that narcotics
traffickers, alien smugglers, and other criminals have found refuge in Cambodia.
Corruption and factionalism among Cambodia's police is also a continuing problem.
One police unit attacked another earlier this year in an effort to intimidate the
unit attacked.

Outward cooperation by Cambodian police officials with the Drug Enforcement
Agency (DEA) however is excellent. Senior Government officials consistently
responded to U.S. requests to make available persons wanted on U.S. arrest
warrants, including in narcotics cases. The Royal Government of Cambodia (RGC)
has established a National Authority for Combating Drugs (NACD) and a special
drug enforcement unit in the Ministry of Interior, however; the effectiveness of
these bodies has been limited by a lack of resources and training, corruption at
various levels of the RGC, the country's geographical location adjacent to major
narcotics producing areas, and involvement by some elements of the Royal
Cambodian Armed Forces (RCAF) and the national police in narcotics trafficking.
While there were several high profile arrests of narcotics traffickers in 1998,
including one of two American citizens and another of an active-duty RCAF
officer, the number of arrests and seizures fell off from 1997 levels. Cambodia
is taking steps to become a party to the 1988 UN Drug Convention.

II. Status of Country

Cambodia is not a major poppy producing country and, with no known heroin
production, is not a major importer of precursor chemicals. Since Cambodia has
only a small drug abuse problem and no indigenous chemical industry, it is also
unlikely to become a major producer of amphetamines or other manufactured illegal
drugs. consequently, chemical control is a low priority. Marijuana is grown in
Cambodia, some for domestic consumption, but in large part for export. There is
no accurate estimate of the amount of land committed to marijuana production.
Cambodia shares borders with Thailand, Laos and Vietnam and lies near the major
trafficking routes for Southeast Asian heroin. The country's recently-formed
enforcement agencies have very few resources, and generally lack even basic
training in law enforcement techniques and drug enforcement measures, including
drug identification. The country's geographical location and the lack of funds
for training and operations make Cambodia a vulnerable target for drug
traffickers and money launderers operating in Southeast Asia.Anecdotal evidence
and reports of seizures by the Cambodian authorities suggest that Cambodia is a
viable trafficking route and may be emerging as a magnet for ethnic Chinese
groups involved in drug trafficking, money laundering, and alien smuggling.
However, little reliable information exists about the extent of money laundering
in Cambodia, although most observers do not believe it is a major
money-laundering center.

III. Country Actions Against Drugs in 1998

Policy Initiatives. In 1998, the senior levels of the RGC were preoccupied with
responding to political instability stemming from the July 1997 factional
fighting and the July 26, 1998 national elections and political demonstrations
that followed. Few major policy initiatives in any area were undertaken by the
RGC in 1998, including narcotics control. Nonetheless, in 1998 the RGC translated
into Khmer and forwarded to the Council of Ministers one of the two UN Drug
Conventions it has not yet signed, and at year's end was searching for funds to
have the remaining convention translated (translation into Khmer is a legal
prerequisite for RGC action). Senior RGC officials remained committed to securing
Cambodia's accession to all three UN conventions as soon as possible, and the
NACD became operational for the first time, albeit with very thin resources.

Prior to the July 1997 factional fighting and the resulting political
instability, the RGC made strides toward effective control of drug trafficking
and transiting in Cambodia. In December 1996, the national assembly passed a
comprehensive counter-narcotics law which was drafted with UNDCP assistance and
advice and reviewed by the Departments of State and Justice. The law includes
anti-money laundering provisions. Passage of the law has provided the police and
the courts, previously hamstrung by lack of comprehensive legislation, with the
legal basis to operate more effectively against narcotics traffickers. There have
been no prosecutions for money laundering, and money laundering continues to be
reported in Cambodia. There is unlikely to be any change in this situation, until
the government takes steps to enforce the anti-money laundering legislation
already in place. A second significant step towards controlling narcotics
trafficking in Cambodia was the formation of a special, 40-person national
anti-drug unit to replace the existing national anti-narcotics unit of the
national police.

Accomplishments. In 1998, the National Bank of Cambodia strengthened its
oversight of banks operating in Cambodia, for the first time suspending the
license of a bank, which failed to meet regulatory requirements. Cambodian
authorities also continued to cooperate with visits by U.S. drug enforcement
agency officials based in Bangkok, including in the case of an arrest of
marijuana traffickers and seizure of marijuana. However, as noted above,
Cambodia's continuing political instability during the year slowed legal reform
and blunted enforcement efforts.

Law Enforcement Efforts. Cambodian enforcement authorities have focused their
efforts on heroin trafficking and the eradication of domestic marijuana, as well
as the import and sale of "ecstasy" and methamphetamine. In 1998,
authorities continued to target trafficking organizations rather than
individuals, and maintained their policy of readily sharing intelligence and
requests for assistance. According to figures supplied by the NACD, 34
individuals were arrested in 1998 for narcotics related crimes, down from 101 in
1997 but equal to the 34 persons arrested in 1996. The NACD reported seizing
8,560 kilograms of marijuana, 1.3 kilograms of heroin, and 4.05 kilograms of
opium in 1998, all of which were lower than the amounts seized in 1997. There
were two high profile drug enforcement actions in 1998, one against two American
citizens and a Thai citizen who were attempting to traffic a large quantity of
marijuana from Koh Kong province, and one against an active-duty RCAF officer who
was involved in heroin smuggling.

Corruption. While no new high-level corruption cases were exposed publicly in
1998, the arrest of the RCAF officer described above continued the government's
apparent effort to identify and target corrupt military and police officials
involved in drug trafficking. Clearly, though, corruption remains an important
factor in the misuse of Cambodia by criminal elements.

Agreements and Treaties. In 1998, Cambodia took steps to become a party to the
1988 UN Drug Convention and the other two major UN drug treaties. While formal
extradition cooperation with the U.S. in narcotics-related cases is not possible
since there is no extradition treaty, senior Cambodian authorities have
consistently responded positively to requests by the United States to render
persons facing arrest warrants, including warrants issued in narcotics cases.

Cultivation/Production. As noted above, significant amounts of marijuana are
grown in Cambodia, although estimates of the amount of land under cultivation
vary widely, and there is no reliable basis for concluding that it equals or
exceeds 5000 hectares. Government authorities and most outside observers do not
believe that opium poppy is cultivated in Cambodia. With the exception of a
laboratory reportedly producing amphetamines in Koh Kong province, drugs such as
heroin, cocaine, and "ecstasy" are not believed to be produced in the
country. Domestic narcotics use is not a major problem, although anecdotal
evidence suggests that narcotics use by foreigners is significant. Abuse of
pharmaceutical drugs, which are not presently regulated in an effective manner,
is common in Phnom Penh. Non-governmental organizations operate a few small
demand reduction programs targeted at street children and other
"at-risk" children.

IV. United States Policy Initiatives and Programs

Bilateral Cooperation. All U.S. Government non-humanitarian assistance to the
Cambodian Government, including in the anti-narcotics area, was frozen after the
July 1997 factional fighting. Hopes last year that a elections would quickly
produce a new coalition government which would focus on narcotics and crime
issues proved to be premature. A new coalition government resulted from the
elections, but only after another year passed without adequate government
attention to Cambodia's pressing crime and narcotics problems. As a result, a
drug-testing laboratory funded by the Department of State and delivered to
Cambodia in 1997 could not be turned over to the RGC during 1998, and the
technician trained to operate the laboratory was forced to find employment
elsewhere. Despite the restrictions on U.S. assistance, the RCG continues to
welcome bilateral cooperation with DEA and other U.S. Government agencies. DEA
personnel continued to visit Cambodia regularly in 1998 and received excellent
cooperation from the RGC. The U.S. Embassy in Phnom Penh accepted a number of
drug samples from the RGC for transport to the U.S. for identification and
analysis by the DEA. The RCG continued cooperation with its neighbors in
Southeast Asia by attending regional conferences, and a representative from the
Cambodian Embassy in Thailand attended the opening of the International Law
Enforcement Academy (ILEA) in Bangkok at the invitation of Thailand.

The Road Ahead. After nearly 18 months of political turmoil in Cambodia, a new
broad-based coalition government has been formed, following elections held on
November 30, 1998. The new government, like its predecessor, is headed by Prime
Minister Hun Sen. With the establishment of the new government, the U.S. is
reviewing its restrictions on non-humanitarian assistance to the RGC. Besides
establishing the drug testing laboratory and resuming training activities, there
is a critical need for a policy dialogue on counternarcotics issues with the RGC,
perhaps in conjunction with the UN Drug Control Program. Establishment of the new
government may also make possible more rapid progress on ratifying the applicable
UN conventions on illicit drugs and modifying existing narcotics laws and
regulations, especially the expansion of the list of illicit narcotics as well as
the strengthening of enforcement of money laundering legislation.

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