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International Narcotics Control Strategy Report, 1999
Released by the Bureau for International Narcotics and Law Enforcement Affairs, U.S. Department of State
Washington, DC, March 2000
SOUTH AMERICA
ARGENTINA I. Summary
Argentina is not a major drug-producing or major drug-transit country, but it remains a conduit for cocaine flowing from neighboring Bolivia, with undetermined quantities of the drug also being moved through Argentina in international transit from Peru and Colombia. Within the last several years, Argentina also has become a transit area for Colombian heroin en route to the U.S. East Coast (primarily New York), although not in quantities determined to have a significant effect on the U.S. According to Argentine government statistics, drug use is growing. The number of people arrested for possession doubled in 1999. The smuggling of coca leaf into Argentina from Bolivia remains a problem, with what is suspected to be a thousand tons of coca leaf transported illegally into Argentina's northern provinces annually for local legal consumption. While aware of its responsibilities in the interdiction area, the Argentine government focuses its counternarcotics efforts on demand reduction.
A new draft law to modify existing money laundering legislation has been approved by the lower house of the Argentine Congress but awaits Senate consent. High-profile money laundering cases, including one involving Colombian drug lord Pablo Escobar's widow, drew public attention to the issue in late 1999. Federal counternarcotics policy is coordinated by the Secretariat for the Prevention of Drug Abuse and Narcotics Trafficking (SEDRONAR). The government has several national security forces involved in counternarcotics efforts, and provincial police forces also play an integral role. Argentina is a party to the 1988 U.N. Drug Convention.
II. Status of Country
Argentina is not a major drug-producing country. Illicit crop production remains negligible. There is very limited refining or manufacturing of illicit drugs. Argentina has a large and well-developed chemical industry, which manufactures almost all the precursors necessary for the processing of cocaine. According to the first national survey on drug use, released in June 1999, 2.9 percent of adults between the ages of 16-65 said they had consumed an illegal drug in the previous 30 days. Marijuana is the most popular illegal drug consumed, with cocaine hydrochloride (HCl) and inhalants ranked second and third.
Most officials agree that the trafficking of narcotics through Argentina is a problem, although it is impossible to quantify the flow with any degree of accuracy. Bolivia is the primary source of cocaine entering Argentina. Some drugs, such as marijuana, enter via Paraguay and Brazil. Within the past several years, the trafficking of Colombian heroin through Argentina to the U.S. East Coast has increased. Seizures of psycho-pharmaceuticals such as "ecstasy" continue to occur. Amphetamine seizures are increasing, as well.
Commercial air, private and commercial vehicles, containerized rail cargo, and foot traffic all serve as means of drug entry into Argentina. The thousands of uncontrolled airfields and small municipal airports, combined with the continuing lack of national radar coverage make Argentina attractive to potential traffickers. Riverine traffic from Paraguay and Brazil is another probable method for moving narcotics into and through Argentina. Drug shipments out of the country are mostly via commercial aircraft or through Argentina's maritime port systems. Couriers of cocaine from Buenos Aires' Ezeiza International Airport are primarily destined for Europe, South Africa, and Australia. Air couriers of heroin are primarily destined for the United States. Maritime transport from Argentina is conducted by both passengers, and possibly, containerized cargo. As a member of MERCOSUR, Argentina cannot open and inspect containers, sealed in another member state, which are transiting through the country. These sealed and uninspected containers are considered to be a high trafficking threat. The Government of Argentina (GOA) has expressed interest in discussing this issue with its MERCOSUR neighbors.
III. Country Actions Against Drugs in 1999
The government actively opposes drug trafficking and the sale and use of illegal narcotics within the country. In 1989, the Argentine Congress passed the laws necessary to bring the 1988 U.N. Convention into effect. Various presidential decrees since then have targeted money laundering and allowed asset seizures. In 1998, a witness protection program for key witnesses in drug-related prosecutions was created.
In 1989, the Menem Administration established the Secretariat for the Prevention of Drug Abuse and Narcotics Trafficking (SEDRONAR) to serve as the central federal anti-drug coordinating organization. In 1996, the government published a federal plan to combat illegal drugs and established a national strategic commission to oversee these efforts. The plan was designed to better coordinate the counternarcotics efforts of the federal and provincial police forces. SEDRONAR was charged with identifying the extent of the narcotics problem in Argentina and drafting a coordinated plan to address the problems on a national basis. The 1999 release of the first national drug survey was a major step forward in developing a scientifically-based national policy.
Argentina remains very active in multilateral counternarcotics organizations such as the Inter- American Drug Abuse Commission (CICAD), the International Drug Enforcement Conference (IDEC), and the U.N. Drug Control Program (UNDCP). In 1999, Argentina hosted several regional meetings on narcotics-related issues and encouraged MERCOSUR to play a larger role in money laundering and chemical precursor diversion investigations. The GOA will host the IDEC in 2000.
Demand Reduction. The GOA has traditionally focused its narcotics efforts on demand reduction. Drug use is treated as a medical problem and addicts are eligible to receive government-subsidized treatment. Buenos Aires Province (the most heavily populated) has its own well-established demand reduction program that targets a large population of drug users.
The USG is working with the Argentine Ad Council to develop the "Partnership for a Drug-Free Argentina." The Argentine Ad Council launched the program in late 1998, and believes that local media have donated over $12 million in free time and space. The campaign has been very successful, bringing in thousands of calls for information about prevention and rehabilitation programs.
Law Enforcement Efforts. Argentina has many federal and provincial police forces involved in the counternarcotics efforts. The primary federal forces involved are the Federal Police (which also have jurisdiction for crimes committed in or connected to the federal capital), the Gendarmeria Nacional (border police), the National Customs Service, the National Air Police, and the National Coast Guard. The provincial police forces of Buenos Aires, Salta, and Jujuy are also heavily involved in counternarcotics efforts.
The amount of illegal narcotics seized in Argentina in 1999 did not change significantly from 1998 rates. However, arrest statistics rose dramatically in 1999, which is consistent with a pattern of frequent small seizures of drugs and a doubling of the number of arrests for possession. As of late 1999, approximately 6 kilos of heroin were seized in Argentina, with another 22 kilos seized in the United States from people arriving from Argentina.
Corruption. Argentina is a party to the Inter-American Anti-Corruption Convention. The GOA neither encourages nor facilitates the production or distribution of narcotics or other controlled substances, nor the laundering of the proceeds from illegal drug transactions. The USG has no information that any senior member of the government is involved in narcotics corruption. Low-level corruption remains an important issue in Argentina, and the new government of Fernando de la Rua has promised to make fighting corruption one of its highest priorities.
Agreements and Treaties. In 1989, the U.S. and Argentina signed a cooperation agreement against drug trafficking. These programs continue, with a budget value of approximately $2.9 million. In 1990, Argentina and the U.S. signed a mutual legal assistance treaty (MLAT), which has been in force since 1993. In 1997, the U.S. and Argentina signed a new extradition treaty, which now has been ratified by both parties, and the exchange of instruments of ratification to bring the treaty into force is expected to occur shortly. A memorandum of understanding between the U.S. Treasury and SEDRONAR dealing with the exchange of financial information relating to money laundering was signed in 1995.
The GOA is a party to the 1988 U.N. Convention, and it has bilateral narcotics cooperation agreements with many countries. Dublin Group assistance, aside from the USG, remains limited. The United Kingdom, Germany, Australia, France, and Italy provide limited training and equipment support.
IV. U.S. Policy Initiatives and Programs
Under the current bilateral agreement, USG funding is used to provide a wide variety of training programs for Argentine law enforcement officials. Examples include providing essential information technology equipment to better coordinate police counternarcotics efforts and supporting the federal/provincial law enforcement "Northern Border Task Force," a major initiative in the frontier region with Bolivia devoted exclusively to counternarcotics work. The unit is showing good results. In early December 1999, the unit was involved in the seizure of 130 kilos of cocaine in four different operations.
The Road Ahead. The USG will continue to support GOA efforts on the critical northern border area where the vast majority of drugs enters Argentina, without neglecting other potentially important areas such as the tri-border area where Argentina, Paraguay, and Brazil meet. Additional efforts are required to support the Argentine Customs Service and Air Police to target heroin trafficking to the U.S. East Coast and cocaine movements by couriers through Argentina's airports. Moreover, the USG will work with the GOA to determine the extent of South Atlantic maritime trafficking. The USG will also continue to support SEDRONAR programs aimed at developing effective chemical controls and to identify the illegal diversion of precursor chemicals.
BOLIVIA I. Summary
An extremely effective eradication program in the Chapare, Bolivia's principal coca-growing region, surpassed last year's record-setting results, reducing the number of hectares of coca under cultivation by more than half, and by 43 percent overall. Even though Bolivia produced less cocaine hydrochloride (HCl) and cocaine base than in 1998, interdiction forces increased arrests and drug seizures (measured in terms of a percentage of potential production). A highly effective chemical interdiction program has forced Bolivian traffickers to continue to rely on substitutes for scarce and expensive chemicals smuggled in from neighboring countries and an inferior process to streamline base and HCl production. As a consequence, the purity of Bolivian cocaine has been greatly reduced and most foreign traffickers now prefer to purchase base in Bolivia and process it into HCl in Brazil, where essential chemicals are readily available. Alternative development initiatives in the Chapare continue to provide licit alternatives to coca, but demand for alternative development is exceeding the ability of the Government of Bolivia (GOB) to provide it. The (GOB) enacted a new Code of Criminal Procedures and is training judges, prosecutors and police in the new trial procedures. No action was taken against money laundering in 1999. Bolivian media and public opinion continue to be largely supportive of counternarcotics efforts. Bolivia is a party to the 1988 UN Convention against Illicit Trafficking in Drugs and Psychotropic Substances (the 1988 UN Drug Convention).
II. Status of Country
During 1999, Bolivia fell further behind Colombia and Peru in the production of coca leaf and cocaine, but remains the world's third largest supplier of cocaine. During 1999, the GOB eradication program reduced coca cultivation by 43 percent nationwide-and by 68 percent in the Chapare. Potential cocaine production fell from 150 metric tons in 1998 to 70 metric tons-the lowest levels of cultivation and potential cocaine production since the USG began conducting imagery-based crop estimates for Bolivia in 1985. This year, for the first time, field abandonment became an important factor in the decline in coca leaf production, with farmers abandoning approximately 1,650 hectares.
As of the end of 1999, Bolivia has approximately 21,800 hectares of coca under cultivation (down from 38,000 hectares in 1998) with 7,500 hectares in the Chapare; 14,000 in the Yungas; and 300 in Apolo. In 2000, the GOB plans to continue eradicating coca in the Chapare and begin preparations for an eradication program in the Yungas. Article 29 of Law 1008, Bolivia's basic counternarcotics law, presently allows for the cultivation of 12,000 hectares in the Yungas in order to satisfy legal demand, although there is evidence that the needs of the legal coca market can be met with half that amount. The same article permits the government to periodically reevaluate the needs of the legal coca market and revise the limit accordingly, which the government plans to do during 2000. There is evidence that Yungas coca is being diverted to the illicit market for conversion to cocaine products, although there is no reliable seizure data at present. The GOB plans to initiate control operations in 2000. The amount of coca grown in Apolo is not significant, and there is no evidence it is being grown for other than legitimate purposes.
III. Country Actions Against Drugs in 1999
Policy Initiatives. The GOB announced the country's first-ever comprehensive counternarcotics strategy early in 1998, and began implementation shortly thereafter. The four part strategy has been extremely successful in eradication, interdiction and alternative development and somewhat less so in prevention/rehabilitation.
In 1999, the Bolivian Legislature enacted a new Code of Criminal Procedures. The new code establishes an accusatorial, adversarial, oral, and public criminal procedure designed to be more rapid and transparent than the current system. Public proceedings and citizen participation (cases will be heard by two professional judges and three citizen judges, i.e., jurors) should help to diminish the possibility of corruption and improve the credibility of the judicial system. The new code permits the police to use undercover agents and to make controlled deliveries of narcotics and other contraband.
The Judicial Council, created in 1998, was designed to de-politicize the selection of judges and to serve as a mechanism for disciplining members of the judiciary. Although it has not performed to expectations, its members unwilling or unable to work together, the Council did suspend or remove 23 judges in La Paz, Santa Cruz and Cochabamba on charges ranging from the acceptance of bribes to judicial misconduct. However, in reviewing the dismissal of a Cochabamba judge, the Constitutional Tribunal, created at the same time as the Judicial Council, reinstated the judge, concluding that members of the judiciary can only be removed subsequent to a final judgement by a criminal court, not an administrative body.
Cultivation. Of the total cultivation in Bolivia of 21,800 hectares at the end of 1999, 17,150 hectares were of mature, harvestable coca, a 40 percent reduction from the previous year. Only 800 hectares of new coca were planted.
One hectare of Chapare coca yields an average of 2.7 metric tons of sun-dried coca leaf, which, in turn, produces 7.44 kilos of cocaine. The elimination of 16,999 hectares of Chapare coca during this year, therefore, prevented approximately 113 metric tons of cocaine from being manufactured from harvestable coca and exported to the U.S. and other destinations.
Production. For the fifth year in a row, total potential cocaine production in Bolivia has declined, from 240 metric tons in 1995 to 70 metric tons in 1999. Moreover, the destruction of 9,725 hectares of new coca and 62,865 square meters of seedbeds ensures this trend will continue if the government's aggressive eradication effort is sustained in 2000.
Alternative Development. The U.S. Agency for International Development (USAID) provides support for the GOB's alternative development activities in Bolivia, which provide licit income-generating alternatives to growing coca. Alternative development assistance was given to those communities and farmer organizations that voluntarily eliminated all of their coca plantings or that had all of their coca forcibly eradicated-114 groups since June 1997 (or approximately 14,570 families).
Licit alternative development production totaling 58,388 metric tons left the Chapare during April, May and June of 1999, with a market retail value of $23.7 million and a farm gate value of $5.7 million. Volumes of all major Chapare products increased in 1999-nine percent in bananas, 437 percent in tangerines, 117 percent in oranges, 242 percent in papayas, 174 percent in pineapples and five percent in plantains. During July, August and September of 1999, while the Bolivian export sector suffered a 15-20 percent decrease, Chapare banana exports increased by 20 percent over the previous quarter, with USAID-assisted firms shipping 6000-7000 boxes per week to Argentina and Chile. One of the project-assisted palm heart packers began shipping 2,000 cases per week to supermarkets in Argentina.
Because of the GOB's resolve to eliminate illicit coca and because it is the second poorest country in Latin America, demand for alternative development is outpacing the GOB's ability to provide it. Only 25 percent of Chapare farmers have received the assistance, and current funding levels will enable the GOB to reach only 50 percent of the communities that have signed coca eradication agreements.
Money laundering. Bolivia's 1996 law against money laundering is still not being enforced, and the GOB is considering transferring jurisdiction from the Superintendency of Banks to a cabinet ministry.
Asset seizure. The seized asset regime set out in the new Code of Criminal Procedures does little to resolve the ambiguities and conflicts in Law 1008 and the Supreme Decree issued in the last year of the previous administration. The code provision appears to be unconstitutional on its face as it provides for the seizure and sale of the property of the accused before a final determination of guilt or innocence. The USG suspended its assistance to the seized asset directorate in 1998.
Extradition. Bolivia and the U.S. signed a bilateral extradition treaty in 1995. The treaty has been in force since 1996. There were no extraditions of Bolivian citizens to the U.S. in 1999. The U.S. has {six} requests pending with the Bolivian government-five of them related to narcotics violations. Two of these individuals are currently serving sentences in Bolivia.
Demand Reduction Programs. The Vice Ministry for Prevention and Rehabilitation received little funding in the GOB's 1999 budget and has been unable to plan a sustainable, comprehensive program.
Law Enforcement Efforts. As Bolivia produces few of the chemicals utilized in processing coca leaf into coca base and HCl, most are smuggled from neighboring countries. Over the last two years, the GOB has operated the region's most effective chemical interdiction program, making some essential chemicals hard to obtain or difficult to afford. In reaction, Bolivian traffickers have streamlined the cocaine production process to reduce or eliminate the need for some chemicals, and are using inferior substitutes for some chemicals and recycling others. As a consequence, the purity of Bolivian cocaine has been reduced to as low as 47%, and Bolivian traffickers continue to use cutting ingredients to make up the quantities requested by their customers. Understandably, demand for Bolivian HCl has fallen, with most foreign traffickers now preferring to purchase base and refine it into HCl in Brazil, where essential chemicals are readily available. This has also caused Bolivian traffickers to purchase Peruvian coca base and HCl. This is an emerging trend that will be closely monitored in 2000.
Even though Bolivia produced less cocaine in 1999 than the year before, drug seizures, expressed in terms of percentage of potential production, are up from 7.7 percent in 1998 to 9.8 percent in 1999.
In June, the special narcotics task force arrested Marino Diodato and fifteen members of his organization. Diodato and his accomplices are part of the Benedetto Santapaola Organization of the Italian Mafia. The Diodato trial is underway, and more than $5.7 million in assets held by him and his organization have been seized.
Corruption. Bolivia's small to mid-sized trafficking organizations do not seem to exercise a corruptive influence at the higher levels of the Bolivian government. Although there were no criminal cases of narcotics-related public corruption brought against senior level officials during 1999, several cases of corruption are pending against narcotics judges in Santa Cruz and Cochabamba. In addition, former Minister of Justice and Human Rights, Carlos Subirana, was forced to resign because of his attempted involvement on behalf of a Diodato co-conspirator during a pre-trial hearing. The present government neither condones, encourages nor facilitates any aspect of narcotics trafficking.
An Office of Professional Responsibility has been established within the Special Narcotics Task Force, the national police organization that supervises the activities of most police units involved in counternarcotics activities, to investigate allegations of corruption and human rights violations against judges, prosecutors and police. This unit investigated 60 allegations of improper action by the police. Of the 60 cases, 53 were investigated and closed, 4 are currently under investigation and 3 are awaiting final disposition. Of 13 cases where there were allegations of human rights violations by police, investigations revealed that only one was substantiated, and disciplinary action is pending in that case.
Agreements and Treaties. Bolivia is a party to the 1961 Single Convention on Narcotic Drugs, the 1972 Protocol thereto, and the 1971 Convention on Psychotropic Substances. Bolivia is also a party to the 1988 UN Drug Convention. Bolivia and the U.S. signed an extradition treaty in 1995. The treaty has been in force since 1996.
IV. U.S. Policy Initiatives and Programs
Policy Initiatives. To ensure that the human rights of Bolivian citizens are respected by USG-supported counternarcotics forces, the mission made the prompt, thorough and impartial investigation of all credible human rights violations-a conditional precedent for the disbursal of balance of payments funds. The mission is helping prepare Bolivian police and prosecutors for the implementation of the new Code of Criminal Procedure and the changes in their respective roles.
Bilateral Cooperation. Chaired by the U.S. ambassador and the Vice-President of Bolivia, the Bi-National Commission, made up of the Bolivian Ministers of Government, National Defense, and Agriculture, other relevant Bolivian officials and key counternarcotics officers of the U.S. Embassy in La Paz, meets regularly to monitor progress toward the goals set out in the 1998-1999 USG-GOB counternarcotics agreements and to consider new programs and initiatives. Many USG law enforcement agencies, including DEA and U.S. Customs, provided training to the Bolivian National Police and military units dedicated to the counternarcotics program.
Road ahead. During 2000, the GOB will concentrate on eradicating excess coca remaining in the Chapare and on planning and preparing for the implementation of an eradication program in the Yungas. Bolivia faces serious short-term economic difficulties and cannot provide the funds required to eliminate all of Bolivia's illegal coca and prevent its future cultivation absent substantial support from the USG and other concerned international donors.
Bolivia Statistics
(1991-1999)
1999 1998 1997 1996 1995 1994 1993 1992 1991 Coca Net Cultivation(1) (ha)
21,800
38,000
45,800
48,100
48,600
48,100
47,200
45,500
47,900
Eradication (ha)
16,999
11,621
7,026
7,512
5,493
1,058
2,397
3,152
5,488
Cultivation (ha)
38,799
49,621
52,826
55,612
54,093
49,158
49,597
48,652
53,388
Leaf: Potential Harvest(2) (mt)
22,800
52,900
70,100
75,100
85,000
89,800
84,400
80,300
78,000
HCl: Potential (mt)
70
150
200
215
240
255
240
225
220
Seizures Coca Leaf (mt)
56.01
93.72
50.60
76.40
110.09
202.13
201.25
188.90
5.45
Coca Paste(3) (mt)
-
-
0.008
-
0.05
0.02
0.01
0.33
0.94
Cocaine Base(4) (mt)
5.48
6.20
6.57
6.78
4.60
6.44
5.30
7.70
3.12
Cocaine HCl (mt)
1.43
3.12
3.82
3.17
3.59
1.02
0.31
0.70
0.32
Combined HCl & Base (mt)
6.91
9.32
10.39
9.95
8.19
7.46
5.61
8.40
3.44
Agua Rica(5) (ltrs)
30,120
44,560
1,149
2,275
16,874
16,874
14,255
50,820
23,230
Arrests/Detentions
2,050
1,926
1,766
955
600
1,469
1,045
1,226
1,003
Labs Destroyed
Cocaine HCl
1
1
1
7
18
32
10
17
34
Base
893
1,205
1,022
2,033
2,226
1,891
1,300
1,393
1,461
Domestic Consumption Coca Leaf (licit)(6) (mt)
-
-
13,300
13,300
13,300
13,300
13,300
10,000
10,000
(1)The reported leaf-to-HCl conversion ratio is estimated to be 370 kg of leaf to one kg of cocaine HCl in the Chapare. In the Yungas, the reported ratio is 315:1.
(2)Most coca processors have eliminated the coca paste step in production.
(3)Includes dry cocaine content of agua rica (see subsequent footnote).
(4)In 1995, an additional 4.1 metric tons of cocaine HCl were seized in Peru based on information provided by DEA in Bolivia.
(5)Agua Rica (AR) is a suspension of cocaine base in a weak acid solution. AR seizures first occurred in late 1991. According to DEA, 37 liters of AR equal one kg of cocaine base.
(6)Licit consumption estimates revised in 1993.[end of document]
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