TEXT: INTERNATIONAL NARCOTICS REPORT -- TAIWAN
(U.S.-Taiwan law enforcement cooperation expanded in 1996)

The State Department has just released its annual International Narcotics Control Strategy Report (INCSR), to accompany the release of the president's drug certification decisions. Following is the section on Taiwan:

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STATEMENT OF EXPLANATION

TAIWAN

Taiwan's geographical location relative to the Golden Triangle and its importance as an advanced regional transportation and shipping center make it a major transit point for drugs destined for the U.S. and other markets. Taiwan authorities dispute this assessment, citing reduced seizures and arrests as a signal of the deterrent effect of their considerable counternarcotics efforts. The pattern of trafficking in the region, however, suggests that because of its geographic location and its ports, Taiwan will remain a target for drug traffickers. Taiwan law enforcement authorities, in fact, recently expressed concern that Hong Kong-based drug traffickers may be collaborating with Taiwan organized crime groups to transfer their base of operations to Taiwan before Hong Kong reverts to Chinese sovereignty in July of 1997, and their cooperation with the U.S. on counternarcotics efforts continues to be good.

Taiwan's law enforcement cooperation with DEA (under the auspices of the American Institute in Taiwan) and other U.S. agencies expanded in 1996. Taiwan is setting up a new National Drug Intelligence Center; we envisage increased cooperation with U.S. law enforcement agencies resulting from this. The American Institute in Taiwan and the Taiwan Economic and Cultural Representative Office continue to negotiate a Memorandum of Understanding to provide a framework for even broader counternarcotics cooperation. Taiwan has been conducting an aggressive anti-crime campaign on other fronts, as well, including prosecuting cases of public corruption. There are, however, no known cases of official involvement in narcotics trafficking.

In 1996, Taiwan also passed money laundering legislation meant to bring it into closer conformity with the goals and objectives of the 1988 U.N. Drug Convention. While the law enhances the ability of law enforcement officials to deal with the problem, it requires a number of revisions to enable Taiwan to meet international standards.

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