1998 International Narcotics Control Strategy Report

Bureau for International Narcotics and Law Enforcement Affairs
United States Department of State
February 26, 1999

OTHER U.S. GOVERNMENT ASSISTANCE PROVIDED

Drug Enforcement Administration

The preeminent responsibility of the Drug Enforcement Administration (DEA) is to reduce and ultimately minimize the impact posed to our nation by illicit drugs. All cocaine and heroin, as well as some marijuana and other dangerous drugs, are produced outside the United States. These illicit drugs are smuggled from countries of their source, usually through other countries, into the United States. Therefore, the reduction of illicit drug availability in the U.S. requires a strong international counternarcotics strategy. In cooperation and coordination with other nations, as well as with other USG agencies, DEA strives to concurrently suppress illicit drug production; disrupt the availability of these drugs in the distribution chain; arrest and prosecute those involved in any aspect of illegal drug trafficking; and seize their profits and assets.

The primary contribution of DEA in implementing our international counternarcotics strategy is accomplished through the 77 offices that DEA maintains in 55 countries worldwide. The DEA overseas mission is fivefold:

1. Conduct bilateral investigative activities,
2. Coordinate intelligence gathering,
3. Engage in foreign liaison,
4. Coordinate training programs for host country police agencies, and
5. Assist in the development of host country drug law enforcement institutions.

In most countries where DEA maintains offices, DEA carries out all of the above functions. The emphasis on each function is determined by the conditions existing in the host nation. For example, in some countries where the drug enforcement system is advanced, a DEA Country Office may limit its role to selected activities instead of the full range of programs. The following sections provide a few examples of the assistance DEA provided during 1998 to host nation counterparts in support of the five function areas.

1. Bilateral Investigations

DEA's Country Offices work with elements of the host nation law enforcement agencies to investigate activities of drug traffickers that lead to indictments and prosecutions in either the host country, the United States, or a third country. Whenever appropriate and feasible, DEA shares intelligence information on major traffickers operating in host countries with foreign counterparts to enhance their investigative knowledge. The examples that follow illustrate DEA's role in bilateral investigations.

The Barranquilla, Colombia Resident Office provided assistance and support to the Colombian National Police Sensitive Investigative Unit in its investigation leading to the arrest of Alberto Orlandez-Gamboa. Orlandez- Gamboa was a DEA and FBI fugitive wanted in the Southern District of Florida for the importation of several multi-hundred kilogram loads of cocaine who was also wanted by Colombian authorities for murder and kidnapping. In addition to Orlandez-Gamboa, Colombian authorities arrested three long-time associates of his who are all DEA fugitives wanted on the same charges as Orlandez-Gamboa, and considered significant cocaine traffickers in their own right.

The Bern, Switzerland Country Office assisted the Swiss authorities in a three-year investigation of Raul Salinas de Gortari that resulted in the forfeiture of approximately $100 million deposited in Swiss bank accounts. The Swiss investigation concluded that when Carlos Salinas was President of Mexico, his brother Raul received hundreds of millions of dollars in payoffs from Colombian and Mexican drug cartels. In exchange, Raul Salinas used his influence and arranged for the protection of large-scale drug shipments in transit from Colombia, through Mexico, and on into the US. The Bern Country Office provided critical assistance in the investigation, including analyzing 90 different bank accounts and coordinating interviews of important witnesses and balancing Swiss requests with US prosecutions involving mutual witnesses.

The DEA Santiago, Chile Country Office, the DEA Miami Field Division, FBI, the US Coast Guard, the US Attorney's Office in the Middle District of Florida, and Chilean law enforcement officers cooperated extensively during the six-year investigation of Chilean Linear Target Manuel Losada-Martinez. He was indicted in Florida in April 1998 for conspiracy to import illicit drugs and possession with intent to distribute cocaine and he was later indicted for carrying on a continuing criminal enterprise. Jose Castrillon- Henao, a Colombian imprisoned in Panama for money laundering since 1996, was also indicted. In May, Chilean authorities arrested Losada-Martinez, as well as thirteen others, for cocaine trafficking conspiracy and money laundering. In early June, Jose Castrillon-Henao was expelled from Panama and he was placed in the custody of USG authorities in Florida, where he is awaiting trial. During the investigation, DEA agents received information that provided a picture of a conspiracy involving the Cali Cartel using Chilean merchant marine co-conspirators to smuggle multi-ton loads of cocaine to the United States.

The Lima, Peru Country Office assisted Peruvian authorities in an investigation leading to the arrest of Linear Target Lizardo Macedo Santillan, aka Cristal, head of a major Peruvian drug trafficking organization with links to Colombian traffickers. Cristal purchased, processed, and shipped a reported 2,500 kilograms of cocaine base to Cholo- Claudia in Cali, Colombia. Cholo-Claudia's nephew attempted to take over the Peruvian end of the organization but he was also captured in Peru. Additional members of the organization have been arrested and 531 kilograms of cocaine have been seized.

DEA in Colombia and the Colombian National Police conducted a joint investigation that resulted in the arrest in Colombia of former Linear Target Jose Nelson Urrego-Cardenas along with his accountant. Urrego- Cardenas was charged with cocaine trafficking and is currently incarcerated in Colombia. He is a Colombian multi-ton cocaine trafficker and money launderer who is mentioned in over 80 DEA case files dating back to 1982.

In 1996 the Bangkok, Thailand Country Office identified a West African cell led by Nicholas Onaro supplying heroin to the Chicago area. At the direction of the Bangkok Country Office, the Chicago Field Division established an undercover post office box for the delivery of heroin from Onaro and his confederates in Thailand. Through intelligence gathering and coordinated foreign and domestic efforts, the investigation resulted in the arrest of Onaro in Bangkok and the arrest of three of his associates in the US. Onaro waived extradition proceedings in Thailand. When he arrived in Chicago, he was arrested and charged with importing a controlled substance into the United States. On September 8, 1998, he pled guilty to conspiracy to distribute a controlled substance.

The DEA San Diego, California, Field Division; New Orleans, Louisiana Field Division; the Brussels, Belgium Country Office; and the New Delhi, India Country Office conducted a joint investigation to identify the individuals and methods involved in diverting precursor chemicals to manufacture methamphetamine in Mexico for ultimate distribution in the United States. DEA and its counterparts coordinated enforcement efforts, using confidential sources and DEA undercover agents to purchase precursor chemicals and then to facilitate the delivery to members of the Amezcua- Contraras Mexican methamphetamine-trafficking organization. The investigation culminated in the arrest of a German residing in Belgium and the Chief Executive Officer of a Bombay-based Indian chemical company.

The Managua, Nicaragua Country Office (MCO) worked closely with the Nicaraguan National Police (NNP) on an investigation leading to the seizure of 1,610 kilograms of cocaine and the arrest of two Nicaraguans. The investigation was of a Nicaraguan/Guatemalan based organization, which specializes in smuggling cocaine from Colombia through Nicaragua to Guatemala. The Guatemala City Country Office was also involved in this investigation. The MCO also supported the NNP in an investigation of the organization headed by Colombian narcotrafficker Almido Yens-Bryan. The investigation resulted in the seizure of 1,200 kilograms of cocaine, arrests of four Colombians, and seizure of one go-fast vessel. This organization specializes in smuggling cocaine from Colombia to Nicaragua in high-speed vessels and then the cocaine is transported to Mexico.

The Islamabad, Pakistan Country Office's investigation with their host country counterparts resulted in 5 arrests and the seizure of approximately $500,000. The investigation targeted retired Pakistani Army Major Mohammad Shafiq, who was conspiring to smuggle a multi-hundred kilogram shipment of heroin to North America. With the assistance of the Los Angeles Field Division in an undercover operation, three individuals in Los Angeles were arrested, followed by the arrest of Shafiq in Pakistan and the intended heroin recipient Ranjit Cheema, long-time target of Canadian authorities.

The Bogota, Colombia Country Office (BCO) identified numerous Colombian heroin traffickers smuggling multi-kilogram quantities of heroin to the United States. As a result of combined efforts and joint investigations among the BCO, the Colombian National Police, and the Colombian Military, the BCO Heroin Task Force reported the seizure of 72 kilograms of heroin, 32 kilograms of morphine, and 84 arrests during FY 1998.

As a result of a joint investigation by the Tegucigalpa, Honduras Country Office and Honduran counterparts, Juan Ramon Hernandez-Menjivar was arrested in June 1998 for kidnapping and murder. Hernandez was a sub-target of recently approved Panama-based DEA/Linear target Arturo Navarro. Hernandez kidnapped three subjects and killed two, in an attempt to retrieve $240,000 in U.S. currency. The $240,000 was found hidden in one of the two cars seized at the time of Hernandez' arrest. On December 5, 1998 Hernandez escaped from prison.

The Belize Country Office assisted in the seizure of 3,001 pounds of marijuana from a false compartment of a cargo container destined to be loaded aboard a vessel bound for Miami. The Belize Country Office and the Belize Police Force worked jointly on the investigation, which resulted in this seizure and the arrest of three traffickers.

The Austrian National Police, working closely with the Vienna, Austria Country Office and in cooperation with undercover agents of the San Francisco Field Division (SFFD), arrested two Belgians and one Dutch and seized 102,000 tablets of ecstasy. This seizure is reportedly the largest ecstasy seizure ever made by the Austrians. The SFFD undercover agents had been negotiating on the delivery of approximately 5,000,000 ecstasy tablets in exchange for cocaine.

Based on information provided by DEA, the Turkish National Police (TNP) seized 750 kilograms of cocaine, the largest cocaine seizure ever in Turkey. Through information provided to the Istanbul, Turkey Resident Office by the DEA Panama Country Office, the TNP was on the lookout for a container being used to smuggle drugs from Panama to Turkey. A search of the container revealed 1,300 cases of canned fruit cocktail, 50 of which contained approximately 750 kilograms of cocaine. A document search revealed that the container was shipped from Chile to Panama to Italy then transferred to another vessel for transport to Turkey. A fictitious company in Maryland was listed as the importer. This seizure resulted in 14 arrests, including the freight expediter and defendants of Turkish, Chilean, Spanish, Polish, and Arab nationalities.

The DEA offices in Singapore, Malaysia, Burma, Thailand, and India cooperated on an investigation involving a multi-ton shipment of ephedrine originating in China and shipped from India through Malaysia and Thailand en route to Burma. The Southern Thailand "Sae Tan" family, a major heroin smuggler/broker who placed the order for the ephedrine, is also a major shareholder of the container shipping company used to transport the ephedrine. The shipment of ephedrine was believed to be used in the production of methamphetamine. In coordination with the DEA office in Kuala Lumpur, the Malaysian Ministry of Health, Pharmaceutical Services Department impounded the five tons of ephedrine.

The DEA Santo Domingo, Dominican Republic Country Office (SDCO) assisted in a collaborative investigation that resulted in the seizure of over $22 million in assets belonging to the organization of Juan Moya-De La Cruz, a notorious drug trafficker. The assets seized pursuant to Dominican Republic Money Laundering Law included houses, apartment buildings, real property, a hotel, vehicles, betting parlors, and currency. The SDCO compiled and analyzed information from DEA investigations in Puerto Rico and New York and worked closely with the Dominican National Directorate for Drug Control.

DEA Seoul, Korea Country Office participated in an investigation leading to the arrest of a Philippine national by Korean authorities for her involvement in the shipment of more than 100 kilograms of heroin to the US via Federal Express packages. To date, a total of 23 shipments have been confirmed through shipping documentation from Federal Express and Express Mail Services, accounting for approximately 85 kilograms of heroin.

The Bogota, Colombia Country Office assisted the Colombian National Police in identifying and seizing narcotrafficker aircraft and investigating narco- pilots and the aviation companies that operate these aircraft. The program focused enforcement efforts on airframe alterations, aircraft identification, sweeps (residue), and all available source data with the aim of developing sufficient evidence to support seizure and forfeit. Efforts resulted in 81 immobilized aircraft, three of which were later forfeited to the Government of Colombia.

Special Agents from the Caracas, Venezuela Country Office coordinated with Guyana Customs to search a Colombian-owned vessel. Based on information supplied by a DEA confidential source, Customs Agents were able to locate and seize 3,154 kilograms of cocaine, which were welded into a secret compartment in the cargo hold.

A multinational team led by Caribbean Field Division agents and including personnel from St. Vincent, St. Lucia, and St. Kitts conducted a cannabis eradication operation in St. Vincent. Over 1.1 million plants were destroyed in visits to 291 fields; 142 curing huts were also destroyed, and 1, 400 pounds of cured marijuana were seized and destroyed.

The Country Offices in Port-au-Prince, Haiti and Santo Domingo, Dominican Republic coordinated Operation Genesis, an initiative designed to foster cooperation between Haiti and the Dominican Republic. This initiative resulted in unprecedented exchanges of law enforcement cooperation between the two countries and also increased cooperation with the USG. For example, Haiti provided the U.S. with a list of 47 Colombians currently incarcerated in Haiti and offered assistance in investigating and extraditing them. Operation Genesis resulted in the arrest of 126 individuals and increased law enforcement cooperation between Haiti, the Dominican Republic, and the United States.

2. Coordinate Intelligence Gathering

DEA coordinates intelligence worldwide on the cultivation and manufacture of illicit substances, the sale of precursor chemicals for making illicit drugs, and the transportation routes of these drugs into the United States. The following activities demonstrate the breadth of DEA involvement worldwide.

Since December 1997, the San Jose, Costa Rica Country Office, in conjunction with the Organization of Judicial Investigations (OIJ), has been investigating the maritime smuggling activities of the Jorge Cardona organization, a significant Colombian transportation network based in Cali, Colombia and operating in Costa Rica. A total of 17 court-authorized electronic interceptions were conducted. As a result, 2,226 kilograms of cocaine were seized and eight mid-level associates were arrested. Next, the OIJ executed a series of warrants which resulted in the arrest of seven Colombians and three Costa Ricans, principal members of the organization, and the seizure of 700 kilograms of cocaine.

The Panama Country Office (PCO) and their Panamanian counterparts have been gathering intelligence on the association of major Panamanian traffickers with the Mexico-based Arellano-Felix Organization. This investigation has resulted in 11 arrests and a series of cocaine seizures totaling approximately 2,268 kilograms. Joint investigations during 1998 between the PCO and Panamanian authorities resulted in the seizure of 10,271 kilograms of cocaine, 39 kilograms of heroin, 10,647 kilograms of marijuana, and 166 drug-related arrests.

Since 1995, the Bogota, Colombia Country Office and the Colombian National Police (CNP) have been investigating the Galeano criminal organization, which is considered to be one of the most significant organizations involved in the manufacture of cocaine hydrochloride (HCl) and its distribution to other drug trafficking organizations throughout Colombia. In June 1998, Colombian authorities arrested brothers Jose Del Carmen Galeano-Murcia and Melecio Galeano-Murcia. CNP anti-narcotics units seized and destroyed several large cocaine HCl processing facilities controlled by the Galeano organization. One such laboratory destruction operation netted the seizure of some 5,000 kilograms of cocaine HCl.

The Bangkok, Thailand and Singapore Country Offices, in conjunction with DEA offices in Seattle, Washington; Bridgeport, Connecticut; and Portland, Oregon conducted an investigation leading to the dismantling of Arthur Torsone's marijuana distribution organization. Cambodian law enforcement authorities arrested American nationals Arthur Torsone and Michael Smith, a Royal Thai Navy officer, and four other Thais. They also seized three tons of marijuana. The traffickers were attempting to transport the marijuana from Cambodia to Indonesia for onward shipment to Seattle, Washington. Intelligence information indicated that the Torsone organization had been off-loading shipments in the Pacific Northwest and transporting them to New York City for distribution since the early 1980's. Smith, the Royal Thai Navy Officer, and Torsone were expelled from Cambodia into the custody of DEA agents for prosecution in the United States. Subsequent to the arrests in Cambodia, 13 of Torsone's associates operating in the U.S. have been arrested and 18,500 pounds of marijuana seized.

Many of the seizures made by Guatemalan law enforcement officials resulted from information obtained from confidential sources developed by the Guatemala Country Office (GCO). After receiving information about a shipment of cocaine to arrive on a yacht and be transported to Guatemala City for subsequent overland distribution to Mexico, the GCO coordinated with the Guatemalan authorities to conduct maritime surveillance operations in Guatemalan territorial waters. Approximately 1,003 kilograms of cocaine were recovered.

A multilateral investigation involving DEA offices in Miami, Florida and Merida, Mexico; and Swiss authorities in Bern, Switzerland; resulted in the seizure of nearly $25 million from 30 separate bank accounts in Geneva, Switzerland and one arrest. The seized bank accounts were controlled by Francisco Brady. Through information obtained by the DEA Merida Resident Office, Brady was identified as a major money launderer for Mexican drug traffickers. In 1997 he relocated from Mexico, established operations in Miami and Geneva, Switzerland, and purchased a controlling interest in two fiduciary companies, which he used to launder the proceeds of other Mexican-based drug traffickers.

In early 1998, a Special Field Intelligence Program (SFIP) was initiated by the Caracas, Venezuela Country Office in conjunction with Venezuelan law enforcement officials to target individuals using Venezuela to launder funds from the U.S. to Colombia. This resulted in 14 arrests in Venezuela and seizures in the United States in excess of $2 million. This SFIP also resulted in the seizure of approximately $3.7 million from a Venezuelan laundering organization's bank accounts.

DEA Ecuador established the Joint Information Coordination Center (JICC) in Guayaquil. The JICC is under the command of the Ecuadorian Judicial Police Directorate and coordinates with members of the Ecuadorian Armed Forces, the Ecuadorian National Police, other JICCs, and EPIC. This is an important first step in improving Ecuador's weak air and maritime port control programs.

The Curacao Country Office and the Criminal Investigative Division of the Curacao Politie launched Operation AYO, which is an intelligence gathering initiative designed to counter use of Curacao as a meeting location and transshipment zone for Colombians. Scrutiny of immigration records of Colombians entering the island has led to the identification of many individuals with criminal histories, including several DEA fugitives.

3. Engage in Foreign Liaison

DEA Agents establish close relationships and networks with their counterparts that foster cooperation in international drug law enforcement. The following examples illustrate the impact of DEA's foreign liaison activities.

In March 1998, DEA sponsored the 16th annual International Drug Enforcement Conference (IDEC). At the conference, 85 senior drug law enforcement officials from 29 member countries throughout the Western Hemisphere and observers from Europe, Asia, and Australia met to discuss and exchange insights on counternarcotics enforcement activities. Presenters described their counternarcotics law enforcement strategies and shared lessons learned from multilateral investigations and operations. Members adopted initiatives pertaining to the development of regional multinational enforcement investigations and operations targeting major drug traffickers in the hemisphere. The conference, hosted by Costa Rica, provided a forum for the delegates to exchange information and build personal relationships that are key to enhancing closer coordination among law enforcement agencies.

The close relationships and networks that the Moscow, Russia Country Office (MCO) has established with the Russian Ministry of Internal Affairs (MVD) resulted in the forcible deportation of a foreign national from Russia to the U.S. for the first time. Without the unprecedented level of cooperation enjoyed between the MCO and the Russian MVD, this successful outcome could not have been achieved. Approximately 884 kilograms of cocaine had been seized in Philadelphia. Subsequent to the seizure, a controlled delivery was conducted to New York, which resulted in the arrest of 4 individuals. A follow-up investigation, coordinated between the DEA New York Field Division, Moscow Country Office (MCO) and Ecuador Resident Office concluded that Francis Vargas, an Ecuadorian national, had orchestrated the shipment of cocaine to New York and was en route to Russia. He was arrested and charged under Russian law with possession of a false passport. Through further coordination between the MCO and host nation counterparts, Vargas was forcibly deported and flown to New York, where he was placed under arrest. He was arraigned in the Southern District of New York and ordered detained. Since his arrest, Vargas has expressed a desire to cooperate with DEA.

In July 1998, the DEA Moscow, Russia Country Office facilitated the signing of a Memorandum of Understanding between DEA and the Ministry of Interior, Russia's primary law enforcement agency and DEA's principal counterpart. The Memorandum of Understanding provides a legal basis for cooperation and the exchange of sensitive law enforcement information. It is viewed as evidence of a commitment to combat international drug trafficking, and the further development of a working relationship between the two agencies.

DEA Turkey has initiated close cooperation with law enforcement officials in Turkmenistan, Azerbaijan, and Georgia. These countries are at the threshold of developing viable law enforcement agencies, and need as much assistance as possible. Recently, agents from the DEA Istanbul Resident Office traveled to Turkmenistan to conduct joint liaison meetings with Turkmenistan law enforcement and government officials. While there, law enforcement officials escorted DEA Special Agents to the Afghanistan and Iranian borders to gather first-hand knowledge on the major smuggling activities of that area. The Special Agents provided an overview of DEA's intelligence capability worldwide and indicated that DEA was committed to assisting in their interdiction and investigative operations.

The close working relationship and trust established between the Quito, Ecuador Country Office, the Ecuadorian National Police, and other Ecuadorian government officials was instrumental in the arrest and extradition from Quito of two high-level Colombian DEA fugitives. One of the fugitives had been indicted for kidnapping and attempted murder of two Colombia-based DEA Agents in February 1982. The other was wanted under a January 1997 indictment for drug trafficking-related charges.

DEA Bolivia has spearheaded efforts for the Bolivian Special Counter Narcotics Force (FELCN) to establish contact with their counterparts in Argentina, Paraguay, and Brazil. DEA has hosted bilateral host nation meetings to establish liaison between local border Argentine/Bolivian DEA- supported task forces. DEA has also opened offices along the Brazilian border area at Puerto Suarez and along the Argentine border in the Yucuiba area. The result of the increase in focus on the Santa Cruz to Puerto Suarez corridor is that of the 4,884 kilograms of cocaine seized for the Santa Cruz department in 1998, 2,082 kilograms were seized in the Puerto Suarez zone.

The Kingston, Jamaica Country Office participated in monthly liaison meetings with Government of Jamaica officials to discuss progress in the marijuana eradication effort and implementation of Jamaica's money laundering, asset forfeiture, and precursor chemical control legislation. These meetings have resulted in a more comprehensive approach to dealing with the drug situation in Jamaica.

Throughout 1998, the DEA offices in Thailand and Hong Kong conducted successful liaison programs, not only with the host nations but also with other nations in the region. Regular liaison trips to Hanoi, Vietnam; Vientiane, Laos; and Beijing, People's Republic of China have continued to promote a growing bilateral relationship with counterpart personnel. As a result of these liaison efforts, DEA was able to secure a permanent presence at US embassies in Vientiane, Laos and Beijing, People's Republic of China, with the assignment of one Special Agent to each respective office. A DEA office in Hanoi, Vietnam is scheduled to open in the spring of 1999 with the placement of two Special Agents.

DEA offices in Southeast Asia performed liaison activities to ensure the success of the November 1998 International Law Enforcement Academy (ILEA) Key Leaders Conference in Bangkok, Thailand. Participants included senior criminal justice leaders from countries in Southeast Asia. The conference was held to discuss plans for the ILEA and ways in which the ILEA can best meet the needs of the region. Formal negotiations between Thailand and the United States to establish the ILEA-Bangkok began in March 1998. It is anticipated that the ILEA will increase the capabilities of regional law enforcement agencies to ensure professional standard law enforcement efforts.

4. Coordinate Training Programs for Host Country Police Agencies

DEA's international training activities are conducted in coordination with DEA's foreign offices, U.S. Missions, and the Department of State, International Narcotics and Law Enforcement Affairs. The full range of the international anti-narcotics training program is addressed in the International Training Section.

The table at the end of this chapter provides a summary of training courses provided by DEA to foreign law enforcement officials.

5. Assist in the Development of Host Country Drug Law Enforcement Institutions

DEA provides training and material support to foreign law enforcement partners to help them combat major drug trafficking organizations and the production and transportation of illicit drugs. DEA Agents meet with their counterparts to discuss policy and legislative issues and provide assistance in developing drug control laws and regulations. The activities described below are representative of DEA's efforts to develop host nation drug law enforcement capabilities.

DEA assisted with the installation of and training on Global Systems Mobile Communications cellular intercept equipment in the Narcotics Division of the Istanbul, Turkey Police Department. The Turkish National Police can simultaneously monitor 30 cellular telephones. Since the installation, a total of 417 kilograms of Southwest Asian heroin have been seized and 25 significant international heroin traffickers arrested. Also in Turkey, the DEA Istanbul Resident Office and the Turkish National Police established drug awareness education programs targeting Istanbul area schools. The drug awareness programs have received considerable praise, and plans are being made to establish nationwide programs.

The Bangkok, Thailand Country Office established two vetted Sensitive Investigative Units (SIU) during 1998. Personnel for the units were recruited from the Thai Narcotics Suppression Bureau and the Office of Narcotics Control Board. As a result of an investigation initiated by one SIU, six individuals were arrested delivering 60 blocks of heroin #4, weighing 22.2 kilograms, to undercover Royal Thai Police, Narcotics Suppression Bureau agents. Members of this unit have been trained in the U.S. by DEA and are tasked with investigating the heroin smuggling activities of the United WA State Army and its associates.

In 1998, the DEA Pretoria, South Africa Country Office met with the heads of various law enforcement agencies in South Africa to outline the concept of Operation Pipeline and its success in the United States. Operation Pipeline is the profiling of vehicles and passengers on interstate highways. DEA's presentation influenced the South African law enforcement community to conclude that the program could work in South Africa. DEA then brought an Operation Pipeline team to South Africa for two sessions to train approximately 150 uniformed officers. Within the first month, nine arrests and seizures were made, some of which involved hidden compartments.

DEA Bolivia is supporting the revitalization of the Special Counter Narcotics Force (FELCN) through significant new Andean Initiative and Sensitive Investigative Unit funding. This funding is being used to upgrade the FELCN Headquarters and professionalize the force through training and DEA advisory assistance. The La Paz Country Office (LPCO) has played a key role in discussions on revisions to the Bolivian Code of Criminal Procedures, which governs all Bolivian law enforcement investigations, including counter narcotics investigations. The LPCO recommended inclusion of the legal use of undercover officers in investigations, plea bargaining, controlled deliveries, and the legal use of informants.

DEA encourages other countries and organizations to adopt strict laws and policies over the sale and trade of chemicals used to produce illicit drugs. DEA conducted chemical training seminars in China, Spain, and El Salvador that described the impact of these dual-use chemicals on the United States. The seminars were offered in an effort to influence adoption of chemical control legislation and regulations. They were tailored to meet the specific needs of each country and how their problems affect the United States.

The Guatemala Country Office (GCO) assisted Guatemalan authorities in establishing chemical control programs and in 1998 Guatemala passed legislation controlling production, importation, and distribution of precursor chemicals. The GCO and DEA sponsored the second inter-regional chemical diversion training seminar, which emphasized the importance of preventing the diversion of chemicals from Central America.

DEA provided law enforcement officials from Hong Kong, Belgium, and Australia with a presentation describing the methods and procedures used to investigate internal criminal and administrative matters. The presentation specifically described Special Agent and other DEA personnel training on integrity issues, supervisor's accountability for employees' actions, and the responsibility of all employees to report ethical violations.

DEA worked closely with the Costa Rican Organization of Judicial Investigations (OIJ) and the Costa Rican legislature to help them develop money laundering laws with stiffer penalties. In May 1998 the Costa Rican legislature passed a money laundering bill that reflected DEA's efforts to make it more difficult to conduct money laundering in Costa Rica. DEA also assisted the OIJ in creating a financial crimes unit.

DEA Mexico City, Mexico Country Office provided material and financial support and participated with Mexican authorities in a joint investigation leading to the arrest of Jesus and Luis Amezcua, principal members of the Amezcua-Contreras methamphetamine organization. DEA provided resources for surveillance of possible locations where Luis and other Amezcua associates were residing. Consequently, both Jesus and Luis were charged with organized criminal activity and operating with resources from illicit gains, but the charges were later dropped and they were ordered released. However, they were immediately re-arrested based on a USG provisional arrest warrant and are being held pending resolution of the USG extradition request. DEA has conducted numerous other investigations during 1998, many of which have led to indictments in the United States of significant leaders of Mexican drug cartels.

The DEA Caribbean Field Division set up the Unified Caribbean On-Line Regional Network (UNICORN) program in Barbados, the Dominican Republic, Haiti, Jamaica, and Trinidad & Tobago to enhance the sharing of information and strengthen law enforcement efforts in the Caribbean. This computer program provides unsecure Internet links for the drug squads within their area of responsibility and has facilitated database checks of suspicious persons and stopped vehicles.

The Manila, Philippines Country Office is assisting the Government of the Philippines in creating a drug enforcement agency modeled after DEA to battle illegal drug trafficking, particularly foreign drug distribution organizations operating in the Philippines. The Manila Country Office met with senior-level Government of Philippines officials regarding President Estrada's ordered study on the proposed Presidential Drug Enforcement Agency. DEA Manila has been requested to provide technical expertise and model legislation during the creation of the new organization.

The Copenhagen, Denmark Country Office played a valuable role in the passing of money laundering legislation in both Lithuania and Sweden. Lithuania is the first Baltic country to enact truly meaningful money laundering legislation. After several years of drafting money laundering legislation, Sweden succeeded in enacting a comprehensive money laundering law that became effective January 1, 1999.

The Singapore Country Office (SCO) assisted the Indonesian National Police in arresting a DEA Idaho fugitive and seizing his catamaran sailing vessel in Bali, Indonesia. The SCO helped prepare the vessel for sale via sealed bid. Half of the $303,000 paid is going to the Indonesian National Police for training, equipment, and interdiction activities. This sharing action will set a precedent involving American and Indonesian law enforcement agencies.

DEA Summary of International Asset Forfeiture Sharing [Excel file]

DEA Training [Excel file]

United States Coast Guard

Combined Operations

Coast Guard counterdrug law enforcement in the Caribbean and maritime borders of Latin America is largely dependent on international combined operations. Partnering with law enforcement officials of other nations helps develop indigenous interdiction forces and enhances the cumulative impact of interdiction against drug traffickers in the region. Combined operations with other nations' maritime forces provide practical training for foreign, as well as Coast Guard personnel.

CARIBE VENTURE is a recurrent series of multinational operations in the Eastern Caribbean. Participants extend legal authority to law enforcement officials of other nations that permit entry and pursuit of suspects through sovereign sea and air space. International partners presently include: United Kingdom and dependent territories, the Netherlands and Netherlands Antilles, France and the French West Indies, Dominican Republic, Antigua & Barbuda, St. Kitts & Nevis, Anguilla & Montserrat, Dominica, Grenada, Barbados, St. Vincent & the Grenadines, St. Lucia, and Trinidad & Tobago. In addition, all RSS member nations participate in ad hoc combined operations conducted in the vicinity of their territorial sea and airspace.

FRONTIER LANCE was a surge operation south of the island of Hispaniola involving U.S. Coast Guard surface and air assets as well as Haitian and Dominican Republic interdiction assets. This operation used shipriders from both countries and helped foster a better working relationship between Haiti and the Dominican Republic. During the operation 2,990 pounds of cocaine, 1,120 pounds of marijuana, and 8 vessels were seized and 20 arrests made. This operation also marked the first time USCG forces conducted counterdrug operations from a foreign base in Baharona, Dominican Republic. Independent of FRONTIER LANCE, the Coast Guard has been embarking a Haitian Coast Guard shiprider on its cutters for all FY98 to conduct combined operations in the territorial waters surrounding Haiti.

OPBAT is an ongoing interdiction program involving forward staged Coast Guard and Army air assets, DEA agents, along with Bahamian Police and Turks & Caicos Islands Police forces. During FY98 OPBAT forces seized 13,071 pounds of cocaine, 6,018 pounds of marijuana, 13 vessels and made 89 arrests. There are three primary staging sites for Coast Guard and Army helicopters, which may respond to targets throughout the Bahamas and Florida Straits. OPBAT style techniques were exported to other regions of the transit zone (Operation FRONTIER LANCE) and are being considered for implementation in other regions of the Caribbean in FY99. During FY98 the Coast Guard also conducted four separate operations with the Royal Bahamian Defense Force.

HALCON is a recurrent series of counterdrug and alien migrant operations conducted between the Coast Guard and Dominican Republic (DOMREP). Shipriders extend legal authority that permits entry and pursuit of suspects through sovereign sea and air space. One operation in the series was conducted in December 1997.

Professional exchange missions such as OPVISTA and OP TIBURON were conducted frequently during the year by a high or medium endurance cutter operating in the Caribbean or Eastern Pacific. In FY98 these operations were conducted in Panama and Dominican Republic. The Coast Guard cutter crew conducted training with members of the host nation's navy for one week and provided domestic support in the form of humanitarian aid.

The Coast Guard also conducted the maritime professional exchange and training components of TRADEWINDS 98, a longstanding annual exercise sponsored by the Department of Defense. Crewmembers from a Coast Guard medium endurance cutter and patrol boat accomplished a broad spectrum of maritime training for personnel from CARICOM nations at three different sites in Belize, Antigua, and Trinidad and Tobago.

OP CONJUNTOS is a continuing series of counterdrug operations that exercise the existing bilateral agreement with Panama. CONJUNTOS was conducted once in FY98 and plans are to continue the series in FY99.

OP VENUS is another continuing operation; this one is with Venezuela. This year the U.S. Coast Guard conducted a two-phase operation with the Venezuelan Coast Guard. In the first phase, the two maritime services conducted a combined dockside boarding. The second phase consisted of a professional exchange between the two nations.

OP RIP TIDE was the first combined operation conducted with the Jamaican Defense Force Coast Guard (JDFCG) in FY98. These operations were very successful and provided significant training to the JDFCG. The operation involved JDFCG shipriders aboard Coast Guard cutters, and patrolling with Jamaican surface assets in a Task Force concept. The operation recorded one disruption and a seizure of a stolen go-fast.

OP ALLIED STRENGTH was conducted with Belize during FY98. In the combined operation with the Belize Defense Force, a USCG LEDET conducted boardings in Belize territorial seas, and an embarked helicopter was used to identify marijuana fields for eradication. Efforts continue toward resolving intelligence sharing differences and communications problems encountered during the operation.

OP SNOWBIRD was an extensive international engagement conducted by the Coast Guard over a three month period in FY98 as a proof of concept for the Coast Guard's new Caribbean Support Tender. This operation provided opportunities for professional exchange and technical assistance with Haiti, Dominican Republic, several Eastern Caribbean Nations, and Venezuela.

The Coast Guard also conducts coincidental operations with the Mexican Navy in the Gulf of Mexico and the Eastern Pacific. During these operations, Coast Guard and Mexican Naval units operate simultaneously, and exchange on- scene information, which may assist in the interdiction of drug traffickers. The Coast Guard assisted the Mexican Navy with the boarding of and subsequent seizure of 5,643 pounds of cocaine on board F/V LADY DOUNIA in FY98. In addition, Coast Guard LEDETs provided dockside boarding technical assistance to the Mexican government on four occasions in FY98.

Law Enforcement Detachments (LEDETs) are largely responsible for the success of combined operations with foreign countries. Coast Guard currently deploys LEDETs on British and Dutch warships which extends the Coast Guard's maritime law enforcement authority. LEDETs provide technical support to foreign countries conducting dockside boardings when requested by the foreign government, usually by operating drug detection devices, and providing guidance on detecting hidden compartments.

Beginning in April 1996, the USCG International Training and Technical Assistance Division (ITD), in conjunction with the Canadian Coast Guard, has been conducting a full time training and advisory program in Haiti, under the direction of the Chief, US Military Liaison Officer, a USCG Commander. The team has been developing the Haitian Coast Guard (HCG), a unit of the Haitian National Police. The HCG now consists of 96 personnel and eight operational boats. They are very enthusiastic in all of their mission areas, especially drug law enforcement. Unfortunately, they are severely restricted in manpower despite a recent doubling of their force. They do not have a reserve force, so every operation impacts their training and qualification program. The HCG is not yet capable of protecting Haiti's 1500kms of coastline and numerous ports from the drug trafficking threat due to a lack of assets, minimal infrastructure, and a shortage of personnel. The HCG has three 40ft Monark patrol boats slated for active service. One is currently in operation the other two are at ISC Miami for repairs. Several others may be rehabilitated in the future. USCG Integrated Support Command Miami is also completing upgrades on two, seized, 32-ft Go-Fast boats, utilizing INL funds, to participate in the HCG efforts along the South Coast of Hispanola.

In addition to the team of trainer/advisors on the ground in Haiti, there has been significant involvement with Haitian students in USCG resident schools. In 1996, the first seven members of the Haitian Coast Guard received a customized 6-week training program at RTC Yorktown. In 1997 and 1998, 28 Haitian students attended residential training at Coast Guard training centers in the United States. These students attended a variety of courses, but the majority of courses attended provided the basic skills needed by the growing Coast Guard. Additionally, several HCG members have attended professional officer training including the International Maritime Officers Course and Officer Candidate School. The HCG has also had two graduates of the USCG Chief Petty Officer Academy.

Maritime Counterdrug Agreements

Coast Guard officers are key members of interagency USG delegations traveling to Caribbean countries to negotiate bilateral maritime counterdrug agreements. The "Six Part" model agreements include shipboarding, shiprider, pursuit, entry-to-investigate, overflight, and order to land provisions. Coast Guard officials are also assisting the State Department in negotiating agreements to improve maritime migrant interdiction operations.

Coast Guard officers are posted in key embassies of source and transit zone countries. Current billets include Bahamas, Barbados, Colombia, Dominican Republic, Haiti, Mexico, Panama, Peru, Trinidad and Tobago, and Venezuela. These officers coordinate a significant amount of informal training and assistance to host nation forces delivered by visiting Coast Guard cutter and aircraft crewmembers, as well as coordination of counterdrug operations.

Training

The U.S. Coast Guard provides basic and advanced training in its four core mission areas of Maritime Law Enforcement, Maritime Safety, Marine Environmental Protection and Defense Readiness. Specific skill sets include enforcement of laws and treaties (counter-narcotics, fisheries, smuggling, alien interdiction); search and rescue; marine environmental response and protection; safety and security of marine transportation, ports, waterways and shore facilities; contingency and response planning; legal authority and jurisdiction; resource management to include budget formulation and workforce planning, training and retention; and national defense preparedness.

The training program development process begins by first assessing the state of the partner nation's maritime program, resources and the organization designated as the lead for this responsibility. A tailored, and possibly joint, training plan is then developed to meet the partner nation's program goals. Ultimately, in-country teams help the partner organization carry out the developed training plan to the point of established self-sufficiency. The team can assist a country in achieving national maritime goals in non-defense areas within the U.S. Coast Guard's area of expertise. Should the partner nation have a mission or issue that is covered by multiple U.S. agencies, which includes the U.S. Coast Guard, the team leader will assist in acquisition of personnel from other U.S. agencies. Mission areas that have been addressed by previous Coast Guard and joint training teams include: evaluation of maritime law enforcement programs, development of model ports relative to narcotics intervention, creation of an implementation plan for a multi-mission, multi-agency maritime service management model, and development of training plans and institutions for multi-agency marine safety and maritime law enforcement programs.

The following pages provide actual and projected training and assistance events for FY98 and FY99.

INCSR 1998 - U.S. COAST GUARD TECHNICAL ASSISTANCE

U.S. Coast Guard Technical Assistance

*There will be significant additions to this plan as the INL training program is developed, especially in the Caribbean, Central America, and South America.

U.S. Coast Guard Vessel Transfer Under Excess Defense Articles Program

United States Customs Service

Since 1973, the U.S. Customs Service has provided a comprehensive program of international counter narcotics training and assistance to foreign customs and other border control agencies. Individual training and assistance programs are tailored to meet the needs of the recipient country but usually focus on one or more of the following subject areas: narcotics interdiction at air/sea/land ports of entry; financial investigations; training development; and management of special enforcement teams.

Counter Narcotics Training And Assistance

In 1998, U.S. Customs conducted a total of 38 international counter narcotics programs involving 1,487 participants from 40 countries. Programs conducted outside the U.S. included eight Overseas Enforcement Training (OET) Programs for individual countries; three Regional Overseas Enforcement Training (ROET) Programs for two or more countries; one Train- the-Trainer Workshop (T3W) for an individual country; two Regional Train- the-Trainer Workshops (RT3W) for two or more countries; 19 Money Laundering Seminars (MLS); and four Short Term Advisory (STA) programs. The one program that was conducted in the U.S. during 1998 was a Mid-Management Seminar (MMS) presented to 25 mid to upper level customs and police officials from six high-threat cocaine source and transit countries.

In addition to the normal schedule of international counter narcotics training and assistance conducted under the auspices of INL, U.S. Customs carried out a number of counter narcotics projects in response to high priority concerns during 1998. Among these are the following:

• U.S. Customs provided technical training and assistance in support of the International Law Enforcement Academy (ILEA) programs currently operating in Budapest and Costa Rica. In addition to presenting the Customs module during both core-programs, U.S. Customs has developed and conducted specialized training with DEA focusing on Drug Investigations and Financial Crimes for Russian and Ukrainian officials (ILEA/Budapest), as well as officials from the various countries participating in ILEA/South (Costa Rica).
• In support of Operation Laser Strike, a DOD-sponsored initiative created to disrupt cocaine traffickers in the South American source zone, U.S. Customs and the U.S. Coast Guard conducted joint INL-funded port assessments in Colombia at the seaports of Barranquilla, Buenaventura, and Santa Marta, and at the El Dorado International Airport in Bogota.
• A joint U.S. Customs/Coast Guard INL-funded maritime assessment was conducted in Lebanon in anticipation of future training and technical assistance. The focus of the assessment was centered on Lebanese Navy port and coastal operations, customs seaport operations, and port administration.
• U.S. Customs provided expert instructors for three OAS- funded Regional Port Security Seminars, which were conducted in Panama, Peru, and Barbados, and included a total of 99 participants from 32 countries.
• Two U.S. Customs officers traveled to El Salvador during May 1998 to provide DEA-funded on-the-job training in cargo inspection at air, sea and land border ports of entry to officers of the Salvadoran National Civil Police, Anti-Narcotics Division (DAN).
• A U.S. Customs canine team (dog/handler) traveled to the Dominican Republic during May 1998 on a SOUTHCOM-funded operation to assist the Dominican National Drug Control Directorate (DNCD) with special roadblock searches near the Dominican/Haitian border.
• Two U.S. Customs officers traveled to Costa Rica during July 1998 to provide DEA-funded on-the-job airport interdiction training for Costa Rican Drug Control Police at the San Jose and Liberia airports.
• Two U.S. Customs officers traveled to the Dominican Republic during October 1998 to provide Post-funded formal classroom training and field practical exercises in land border interdiction to the newly created Dominican Anti-Crime/Counter narcotics Border Unit.
• Two U.S. Customs officers traveled to four commercial seaports in Colombia during November 1998 on a Post-funded inspection technology assessment to provide recommendations for future port investment in high technology inspection equipment.
• Two U.S. Customs officers traveled to Guatemala during November 1998 to provide a Post-funded Intelligence Collection and Analysis Course to Central American Narcotics Police Officers.

Industry Partnership Programs

Carrier Initiative Program (CIP) and Business Anti-Smuggling Coalition (BASC) training are conducted for U.S. Customs' industry partners. The Carrier Initiative Program provides counter narcotics and security training to air, sea and land commercial transport companies (carriers) and emphasizes public-private partnerships in which U.S. Customs and the carrier companies cooperate to prevent commercial conveyances from being utilized to smuggle narcotics. The Business Anti-Smuggling Coalition (BASC) is a business-led, U.S. Customs-supported alliance created to combat narcotic smuggling via commercial trade. As a voluntary program for businesses, with no Government-imposed mandates, corporate participants are expected to set self-imposed business standards that will significantly deter narcotics traffickers. The BASC program examines the entire process of manufacturing and shipping of merchandise from foreign countries to the United States, emphasizing the creation of a more security-conscious environment at foreign manufacturing plants to eliminate, or at least reduce, product vulnerability to narcotics smuggling. By examining packing and shipping practices and identifying and correcting deficiencies along the spectrum of the import process, businesses can reduce their exposure to the likelihood that their shipments will be used as narcotics smuggling vehicles.

FY 1998 was the eighth year in which INL has funded Customs' international training for the Carrier Initiative Program, and the second in which INL funding was provided for the BASC. FY 1998 INL funds were used to present CIP and BASC training to 848 employees in 16 programs. These programs were offered in the following countries: Antigua, Chile (three programs), Ecuador (three programs), Guyana, Mexico, Panama (six programs) and St. Maarten. Furthermore, site surveys were conducted in Anguilla, Chile, Ecuador, Guyana, Mexico, Panama, and St. Maarten/St. Martin. Costs relating to these programs are partially offset by the sponsoring commercial transportation companies.

At present, 2,900 sea carriers, 925 land border carriers, and 160 airlines participate in the Carrier Initiative Program, for a total of 3,985 signatories. In FY 1998, Customs Industry Partners effected 82 foreign interceptions of illegal drugs, with a total weight of 42,665 pounds. They also provided information and assistance leading to 54 drug seizures at the U.S. border, with a weight of 21,217 pounds. In total, CIP signatories participated in 136 interceptions and seizures, preventing 63,882 pounds of illegal drugs from entering the United States. Over 200 foreign manufacturers and exporters have begun participation in the BASC since its inception in 1996.

U.S. Customs and the Mattel Corporation, one of private industry's first proponents of the Business Anti-Smuggling coalition, addressed the 10th Working Group meeting of the World Customs Organization's (WCO) Alliance of Customs and Trade for the Interdiction of Narcotics (ACTION/DEFIS). Discussed were the development of the BASC program, reasons why industry desired such a program, and the benefits enjoyed by Customs and industry as a result of the program. It was announced that the International Chamber of Commerce has endorsed BASC and hopes to work with the WCO in expanding BASC around the world. The Americas Counter Smuggling Initiative (ACSI) is a priority undertaking established by U.S. Customs to build upon the success of the CIP and BASC, by strengthening and expanding our anti- narcotics security programs throughout Central and South America. Under the auspices of ACSI, U.S. Customs officials are being detailed to select Central and South American countries to assist businesses and host governments in developing security programs and initiatives to safeguard legitimate shipments from being used to smuggle narcotics. A parallel track of the ACSI includes the training of counterpart customs administrations and other appropriate foreign government anti-drug forces. During 1998, U.S. Customs made an intensified and successful effort to introduce ACSI to the governments and trade and transportation entities in the countries of Colombia, Panama, Peru and Venezuela.

Results

Particularly noteworthy in assessing U.S. Customs international counternarcotics training and assistance during FY 1998 are the following reports on the results of the training efforts in terms of narcotics seizures, improvement in the organization of counternarcotics law enforcement, and increased public awareness:

• On December 3, 1998, at the Port of Cartagena, Colombia, the Colombian Anti-Narcotics Police seized 16,000 pounds of cocaine, which was concealed behind a false wall in an ocean container, en route to Cuba. On July 10, 1998, at the Port of Cartagena, the police seized 15,000 pounds of cocaine in an ocean container. In both cases, a U.S. Customs Americas Counter Smuggling Initiative (ACSI) team was in Cartagena, providing interdiction training to the police, the export companies, and port authorities.
• On November 24, 1998, the Guatemala Anti-Narcotics Police (DOAN) at Puerto Quetzal seized an estimated 1,200 pounds of cocaine found inside a twenty-foot container and commingled with a shipment of tools arriving from Buenaventura, Colombia. This is the third seizure of cocaine this year found in Puerto Quetzal commingled with cargo originating in Colombia. This seizure is a result of a manifest review by DOAN agents who were trained by the U.S. Customs advisor assigned to the Narcotics Affairs Section in Guatemala.
• On July 9-10, 1998, in Cartagena, Colombia, ACSI team members provided training to Colombian Anti-Narcotics Police on targeting methods and examination techniques for shipments of commercial cargo. During the afternoon of July 10, 1998, Colombian Anti- Narcotics Police in Cartagena effected a seizure of 14,986 pounds of cocaine, in a shipment of 192 metal spools of nylon thread. In addition to the technical training, U.S. Customs provided assistance in the removal of the narcotics.
• During FY 1998, the Costa Rican Drug Control Police have seized approximately 8 metric tons of cocaine. The Drug Control Police partly attribute the surge of seizures this past year to INL-funded U.S. Customs regional training conducted over the past two years.

Customs Mutual Assistance Agreements

1n 1998, the United States Government signed Customs Mutual Assistance Agreements (CMAAs) with the Governments of Latvia and Romania, and pending signature with Panama. CMAA negotiations are currently on going with the Governments of Chile, China, and Colombia. CMAAs provide for mutual assistance in the enforcement of customs-related laws, and U.S. Customs utilizes these agreements to assist in evidence collection for criminal cases involving narcotics smuggling and money laundering. U.S. courts have ruled that evidenced gathered via these executive agreements is fully admissible in U.S. court cases.

Shared Financial Assets

In FY 1998, U.S. Customs shared financial assets with the following countries:

U.S. Customs Training Statistics