Text: 1999 Narcotics Report on the Asia-Pacific Region
(Explanation Statement and Report on Taiwan)STATEMENT OF EXPLANATION
TAIWAN
The United States considers Taiwan a major transit point for drugs affecting the United States due to its geographic location, its role as a regional transportation/shipping hub, and the activities of organized crime groups. Taiwan in 1999 continued its aggressive domestic counter-drug program and its effective cooperation with the United States, through the American Institute in Taiwan (AIT). Through October 1999, Taiwan authorities investigated 68,612 new drug cases, an increase of 48.9 percent over the same time period in 1998. The authorities seized more illicit drugs, primarily methamphetamine-type stimulants, in the first ten months of 1999 than all of 1998. Although indictments and convictions for drug-related offenses on Taiwan continued to fall in 1999, the decline reflects the first full year in which a law, allowing first-time addicts to participate in drug treatment programs in lieu of imprisonment, has been in force.
Taiwan cannot be a signatory to the 1988 Drug Convention because it is not a U.N. member. Taiwan authorities, nonetheless, have passed and implemented laws bringing Taiwan into compliance with the Convention's goals and objectives. Taiwan also continued to expand counter-drug cooperation with U.S. law enforcement agencies, through AIT.
Encouraged by AIT and DEA, Taiwan authorities passed two key drug laws to control both the manufacture and sale of phenylpropanolamine (PPA). The laws allow pre-export notification on shipments of PPA to other countries and establishes a new agency to monitor the production, use, and sale of drugs. Taiwan has continued to strengthen its efforts to stop drug trafficking and is addressing domestically and in conjunction with the international community the problem of money laundering.
Through AIT, Taiwan and U.S. law-enforcement agencies cooperated closely on investigations and joint operations concerning drug trafficking and related crimes. Taiwan authorities worked with the United States and other countries on anti-money laundering efforts. Taiwan is an active participant in the Asia-Pacific Group on Money Laundering and the Egmont Group.
Taiwan
I. Summary
The United States considers Taiwan a major drug-transit point for drugs affecting the U.S. due to its geographic location and its role as a regional transportation/shipping hub. The UN removed Taiwan in 1996 from its list of major drug transit centers. Despite the lack of recent seizures in the U.S. of heroin that has transited Taiwan, Taiwan individuals with connections to organized-crime groups are known to be involved in drug trafficking in the Southeast Asian region. In view of Taiwan's geographic location, its role as a regional shipping hub, and activities of organized-crime groups, it is likely that drugs transit Taiwan to the West, including the U.S.
In 1999 Taiwan continued its aggressive domestic counternarcotics program and its excellent effective cooperation with the U.S. The authorities investigated 68,612 new narcotics cases through October 1999, an increase of 48.9 percent compared to the same time period in 1998. The authorities seized more narcotics, primarily of methamphetamine-type stimulants, in the first ten months of 1999 than all of 1998. Indictments and convictions for drug-related offenses on Taiwan continued to fall in 1999. The decline reflects the first full year in which a law has been in effect allowing first-time addicts to participate in drug treatment programs in lieu of imprisonment. Taiwan cannot be a party to the 1988 Drug Convention because it is not a UN member. Taiwan authorities, nonetheless, have passed and implemented laws in compliance with the goals and objectives of the Convention. Taiwan also continued to expand counternarcotics cooperation with U.S. law-enforcement agencies through the American Institute in Taiwan (AIT); in some cases, however, authorities in Taiwan are not responsive to U.S. requests for assistance in criminal investigations.
II. Status of Taiwan
Taiwan does not cultivate or produce illegal narcotics, but the illegal consumption of both heroin and methamphetamine remains a serious social problem.
Mainland China continues to be the primary source of drugs entering Taiwan. Some 78 percent of methamphetamine and 17 percent of the heroin, whose origin could be identified, came into Taiwan from mainland China.
Despite the lack of heroin seizures in the U.S. that can be directly linked to Taiwan, USG analysts continue to view Taiwan as a major transit point for heroin significantly affecting the U.S. The conclusion is based on analyses of regional trafficking patterns and Taiwan's role as a regional transportation/shipping hub. Taiwan's Kaohsiung harbor is the world's third busiest container port and is a major center for shipping to and from Southeast Asian ports. Of the nearly 6.27 million TEU (twenty-foot-equivalent unit) shipping containers handled at Kaohsiung port last year, a significant percentage was "in transit" and, according to standard international practice, not subject to inspection by Taiwan Customs. Taiwan Customs examined 3.41 percent of inbound containers and 0.73 percent of outbound containers.
Money laundering of drug proceeds is a problem in Taiwan, but money laundering also occurs for non-narcotics-related activities, such as insider trading and smuggling. Through October 1999, 1,003 cases of suspicious financial transactions were investigated, of which charges were filed in seven cases and 116 cases were referred for further investigation.
III. Taiwan Actions Against Drugs in 1999
Policy Initiatives. Taiwan has continued an aggressive island-wide counternarcotics campaign that includes both harsh sentences for narcotics trafficking and social rehabilitation programs. This year was the first full year that Taiwan's tough Omnibus Hazardous Narcotics Prevention Act was in force.
On May 11, 1999, the Legislative Yuan passed two key narcotics laws: The "Law for Management of Controlled Drugs" and the "Organizational Law for the Bureau of Controlled Substances". These laws, which AIT and the U.S. Drug Enforcement Administration (DEA) encouraged the Taiwan authorities to adopt, provide the legal basis to control the manufacture and sale of phenylpropanolamine (PPA). They also allow pre-export notification on shipments of PPA to other countries, as well as establish a new agency to monitor the production, use, and sale of narcotics in Taiwan. In addition, these laws authorize the use of small amounts of seized drugs for research purposes.
The Taiwan authorities want greater cooperation with the People's Republic of China (PRC) to combat drug trafficking, since many of the narcotics-particularly methamphetamine-entering Taiwan come from the PRC. Taiwan's ability to block drug smuggling has been hampered by cross-strait tensions and the concomitant lack of cooperation from PRC law-enforcement agencies. The Taiwan authorities have indicated that they would like to include law-enforcement issues in the cross-strait dialogue, when it resumes.
In order to improve Taiwan's ability to interdict cross-strait smuggling, the Legislative Yuan in 1998 created the Maritime Police Bureau. Approximately 20,000 officers staff this bureau, and it has a total of 87 boats-four more boats will be added in the year 2000. Organized into 16 squadrons, the bureau has stationed 13 boats on Taiwan's west coast to operate in the Taiwan Straits. The Maritime Police Bureau operates within 200 nautical miles off Taiwan's coast. Its predecessor organization had a jurisdictional limit of only 12 miles. Under AIT auspices, DEA has met with bureau officials to discuss intelligence sharing and pending operational matters.
The Money Laundering Prevention Center (MLPC) serves as the enforcement and intelligence backbone of Taiwan's interagency anti-money-laundering efforts. It continues to expand its contacts and exchanges with the U.S. and other foreign law-enforcement officials. The MLPC is a founding member of the Asia-Pacific Group on Money Laundering and, in 1998, became a participant in the Egmont Group, an informal international anti-money-laundering collective.
Through AIT, Taiwan has cooperated closely with U.S. law-enforcement agencies in conducting investigations and joint operations involving illegal narcotics trafficking and related crimes. Taiwan authorities have responded positively and constructively to U.S. requests and initiatives related to counternarcotics issues. Over the past year, Taiwan law-enforcement officials continued to expand their exchanges through AIT with U.S. and regional law-enforcement agencies to share information collected in Taiwan on cases extending beyond the island itself.
Accomplishments. The Taiwan authorities continued to investigate vigorously all potential narcotics leads. By the end of October 1999, Taiwan officers seized 70.62 kilograms of heroin and 1139.34 kilograms of methamphetamine. Those seizures represent a decrease of 44 percent for heroin and a 50 percent increase for methamphetamine compared to the same period in 1998. The number of individuals charged with narcotics crimes in the first ten months of 1999 decreased 37.4 percent to 8,044. The decline is due, in part, to provisions in the Hazardous Narcotics Prevention Act, in force for its first full year in 1999. The Act provides that first-time users who successfully undergo treatment no longer face criminal charges. Likewise, the number of narcotics-related convictions through October 1999 (6,511) also decreased by 63.7 percent from the 1998 ten-month conviction rate.
Law Enforcement Efforts/Corruption. The Ministry of Justice plays a major role in formulating counternarcotics policies and legislation. The Ministry of Justice Investigation Bureau (MJIB) and the National Police Administration's Criminal Investigation Bureau (CIB) are Taiwan's lead counternarcotics law-enforcement agencies.
Taiwan's law-enforcement personnel are fully committed to the fight against narcotics trafficking. Through October 1999, they investigated more than 68,612 new cases. Taiwan has continued a crackdown on organized crime and is aggressively pursuing cases of public corruption. To date, there have been no reported cases of official involvement in narcotics trafficking on Taiwan. Taiwan authorities do not tolerate the production or distribution of illegal drugs.
Taiwan law-enforcement officers have both the will and ability to target major syndicates and individuals trafficking in drugs and have worked with DEA on narcotics investigations. Counternarcotics authorities are often hampered in their ability to conduct long-term investigations, however, because of a legal requirement that investigations be completed within a specified period of time. Laws against entrapment are also strict, and undercover activity by law-enforcement officials remains a legal gray area.
Agreements and Treaties. Taiwan authorities have long indicated an interest in negotiating a mutual legal assistance agreement with the U.S. AIT and its Taiwan counterpart, the Taipei Economic and Cultural Representative Office in the United States (TECRO), are discussing the possibility of negotiating a mutual legal assistance agreement and are currently negotiating a customs mutual assistance agreement. In 1992, AIT and TECRO signed a memorandum of understanding on counternarcotics cooperation in criminal prosecutions. Taiwan is not now party to any other formal bilateral counternarcotics agreements and cannot be a party to the 1988 UN Drug Convention because it is not a UN member. Nevertheless, the Taiwan authorities state they are committed to the goals and objectives of the Convention and have enacted legislation to bring Taiwan's counternarcotics laws into close conformity with its provisions.
Despite the lack of formal agreements, Taiwan law-enforcement officials work closely with their counterparts in the region. For example, they have shared intelligence information with Japan, Hong Kong, and The Philippines. This coordinated effort resulted in a number of significant investigations, which led to the seizure of large quantities of methamphetamine and numerous arrests. In addition, through AIT, DEA and MJIB conducted a joint investigation over several years that has led to the disruption of a major methamphetamine trafficking organization. In a joint DEA-MJIB investigation, the MJIB seized 76 kilograms of methamphetamine and 22 kilograms of heroin and arrested four people in February 1998. MJIB developed more information, which it shared with its Japanese counterparts. This effort led to the October 1999 seizure of 616 kilograms of methamphetamine in Japan and the arrest of 15 people. As a result of another joint DEA-MJIB investigation, Japanese authorities were provided with intelligence that resulted in the seizure of 101 kilograms of methamphetamine and the arrest of 17 people.
Cultivation/Production. Taiwan is not a producer of illicit drugs.
Drug Flow/Transit. From January to October 1999, Taiwan authorities seized 70.62 kilograms of heroin, of which 35.6 percent arrived from Thailand, 14.2 percent from Hong Kong, and 10.2 percent from mainland China. Of the 1139.34 kilograms of methamphetamine seized, 68.5 percent came from mainland China and 5.2 percent came from Thailand. Some heroin is smuggled into Taiwan on container ships. Both heroin and methamphetamine are smuggled into Taiwan through a variety of methods and routes. Drugs traffickers send couriers and trawlers carrying narcotics from numerous Asian locations to Taiwan's ports and airport. Fishing boats continue to be the principal means of smuggling heroin and methamphetamine from mainland China to Taiwan.
Domestic Programs. The Hazardous Narcotics Prevention Act, implemented in 1998, recognized the importance of rehabilitation in addition to more traditional methods of dealing with drug use. The Act requires users to undergo observation and treatment at narcotics rehabilitation centers. Users who succeed in kicking their habits do not face criminal charges. If they fail to pursue treatment seriously, they may be charged. While still in the early stages, this approach has had some success. During the first ten months of 1999, 33,634 individuals (including 31,396 adults and 2,238 juveniles) entered treatment programs. Of the 32,968 individuals who completed treatment, the authorities believe that 22,406 (68 percent) have not resumed drug use.
Taiwan continues to employ an aggressive media campaign to educate the public on the negative consequences of narcotics use and has expanded school programs designed to discourage juveniles from trying drugs. In addition, Taiwan is also encouraging private organizations to participate in school programs and the management of rehabilitation centers.
IV. U.S. Policy Initiatives and Programs
Policy Initiatives. The USG, through AIT, has vigorously pursued closer working-level cooperation on counternarcotics matters, including increased intelligence exchanges and joint operations. During the past year, DEA has expanded its working-level contacts with Taiwan law-enforcement agencies.
In March 1999, AIT and DEA met with various executive Yuan agencies and Legislative Yuan members to encourage Taiwan to adopt a comprehensive control system for the export of narcotic precursor chemicals, including pre-export end-user checks. In May, the Legislative Yuan approved two laws to control these items.
In April, a chemist from the DEA's special testing lab visited Taiwan to exchange information with his counterparts at MJIB. Subsequently, MJIB sent one of its chemists to the U.S. In June, DEA conducted training for MJIB on undercover operations, informant handling, and drug trafficking trends in Southeast Asia. Also in June, the Deputy Director of DEA's Office of Diversion Control and the Chief of Chemical Controls visited Taiwan to discuss controls on precursor chemicals and pre-export checks.
Through AIT's voluntary and international visitor programs, the U.S. has exposed key Taiwan prosecutors and legislators to U.S. law-enforcement policymakers and programs.
Road Ahead. In the coming year, AIT and U.S. law-enforcement agencies will continue to work closely with Taiwan to further promote joint counternarcotics operations, money-laundering investigations, and two-way exchanges of information.
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