*EPF504 03/02/01
Excerpts: Annual Drug Certification Determinations -- East Asia
(Cambodia, China, Laos, Thailand, Vietnam certified) (3020)

The U.S. State Department's annual drug certification process identified Burma, Cambodia, China, Laos, Thailand, and Vietnam as major drug-producing and/or drug-transit countries this year, but the certification determinations recognized each country -- with the exception of Burma -- for counter-narcotics efforts.

A country that produces and/or transits narcotics must receive annual U.S. certification that it has fully cooperated with efforts to achieve full compliance with the goals and objectives of the 1988 U.N. Drug Convention, if it is to receive U.S. assistance or avoid having the United States vote against multilateral development bank assistance for that country.

According to the International Narcotics Control Strategy Report of 2001, Burma -- the world's second-largest source of illicit opium and heroin -- has exerted only feeble efforts to control narcotics production and traffic within its borders.

China, on the other hand, has made significant strides in narcotics control, the report says, and Thailand currently has "one of the world's most effective illicit drug crop control programs."

Although the report identifies Cambodia as the "weak link" in the Asia-Pacific region's efforts to combat drug production and trafficking, that country received certification this year because of "relevant U.S. vital national interests," according to a presidential determination released March 1.

Political instability and corruption hobbled Cambodia's anti-narcotics efforts, the report says. Nonetheless, Cambodia's legislature passed laws this year to create an international tribunal to bring to trial the former leaders of the Khmer Rouge. This, in the U.S. view, is a major step towards greater international acceptance and one that will require donor assistance to Cambodia. Should sanctions be imposed, it would not be possible for the U.S. Government to assist in strengthening Cambodia's democratic development, according to the report.

Following are excerpts from the statements of explanations for the annual drug certification determinations, as made available by the State Department's Bureau of International Narcotics and Law Enforcement:

(begin excerpts)

Annual Drug Certification Determinations
Pursuant to the Foreign Assistance Act

Statements of Explanation

Burma

The world's second largest source of illicit opium and heroin, Burma accounts for approximately 80 percent of the total production of Southeast Asian opium, although production has declined yearly since 1996. Poppy cultivation expanded in 2000 to 108,700 hectares, a 21 percent increase over the 89,500 hectares cultivated in 1999. Because of localized bad weather, Burma produced 1,085 metric tons of opium in 2000, a decrease of 5 metric tons from the 1,090 metric tons produced in 1999. Heroin seizures declined for the third straight year, and opium seizures rose only slightly. Heroin seized in 2000 totaled 171 kilograms compared to 273 kilograms in 1999 and 404 kilograms in 1998. Opium seizures in 2000 totaled 1,528 kilograms compared to 1,445 kilograms seized in 1999 and 5,394 kilograms seized in 1998. Only two heroin refineries were destroyed through November 2000. The Government of Burma claimed to have eradicated 10,985 acres under poppy cultivation in 2000.

In 2000, Burmese officers seized approximately 27 million methamphetamine tablets, a decrease from the nearly 29 million seized in 1999 and only a small fraction of the total produced in Burma. Seizures of ephedrine, the precursor used to manufacture methamphetamines, also declined from nearly 6,500 kilograms in 1999 to approximately 2,700 kilograms in 2000.

The Government of Burma pursued a cautious, low-risk counterdrug program, introduced no new counterdrug policies, continued to exert little direct pressure on major drug organizations, and made almost no attempt to seize drugs or destroy illegal drug factories in United Wa State Army-controlled territories.

The Government of Burma continued to pursue and arrest individual drug traffickers, including members of some former insurgent groups, but has been unwilling or unable to take on the most powerful groups directly. The cease-fire agreements signed with these insurgent groups often implicitly condone their continued participation in drug production and trafficking, at least over the short term. The ethnic drug-trafficking armies, such as the United Wa State Army and the Myanmar National Democratic Alliance Army, remain armed and heavily involved in the heroin trade.

The Government of Burma expressed support for poppy eradication and crop substitution, but allocated few resources to such projects. Its policy is to force the leaders in the ethnic areas to spend their own revenues, including from the drug trade, on social and physical infrastructure. The approach limits the Government of Burma's ability to continue or expand its counterdrug efforts.

Burma's 1993 Narcotic Drugs and Psychotropic Substances Law conforms to the 1988 UN Drug Convention and contains useful legal tools for addressing money laundering, seizing drug-related assets, and prosecuting drug conspiracy cases. Government officials, claiming they lack sufficient expertise, have been slow to implement the law, targeting few, if any, major traffickers and their drug-related assets. Money laundering in Burma and the return of drug profits laundered elsewhere are thought to be significant factors in the overall Burmese economy, although the extent is impossible to measure accurately.

The Government of Burma continued to refuse to transfer to U.S. custody drug lord Chang Qifu on grounds that he had not violated his 1996 surrender agreement. The 1988 UN Drug Convention obligates parties, including Burma, to prosecute such traffickers.

The Government of Burma's counterdrug efforts in 2000 showed progress in a number of areas: crop eradication continued with modest expansion; anti-drug forces conducted more vigorous law-enforcement efforts; and members of some cease-fire groups were arrested for drug trafficking. Such efforts must be expanded, however, if they are to have a significant impact on the overall trafficking problem.

On balance, the United States Government remains concerned that Burma's efforts are not commensurate with the extent of the illicit drug problem within its borders. Large-scale poppy cultivation and opium production continues, and enormous quantities of methamphetamines are produced. The Government of Burma's effective toleration of money laundering, its unwillingness to implement its counterdrug laws, and its failure to transfer notorious traffickers under indictment in the United States are all serious concerns.

Cambodia

Cambodia remained a weak link in the region's efforts to combat the drug trade. Through 1998, chronic political instability hindered Cambodia's ability to mount a sustained counterdrug effort. Cambodia's institutions are now only slowly improving. The Government of Cambodia recognizes that its counterdrug performance to date has been inconsistent and often ineffective, and there is widespread recognition that the country must be more aggressive in tackling drug-related issues.

There was some progress in improving law enforcement and limiting corruption in 2000, but there was insufficient progress for Cambodia to qualify for full certification.

There were positive developments reported. Cambodia's lead counterdrug agency, the National Authority for Combating Drugs (NACD), cooperates closely with the U.S. Drug Enforcement Administration, regional counterparts, and the UNDCP. Cambodia is a party to the 1993 Regional Memorandum of Understanding on Drug Control, and is also a party to a six-country Subregional Action Plan for Drug Control. In mid-2000, the United States Government permitted mid-level Cambodian officials to participate in courses at the International Law Enforcement Academy (ILEA) in Bangkok, an initial step toward fulfilling critical training shortcomings.

The Government of Cambodia continued to have some success in combating illegal cultivation of marijuana. The military conducted numerous sweeps against marijuana producers in the major growing zones and destroyed 60 hectares in 2000, three times the previous total. However, seizures of harvested marijuana declined. The Prime Minister spoke out forcefully against corruption. He fired some high level officials, including a provincial governor and his staff, for involvement in illegal logging, and publicly threatened to fire another governor for failure to act against illegal marijuana cultivation.

Despite those positive developments, corruption in Cambodia remained prevalent. Until this crucial problem is more fully addressed, effective law enforcement will remain elusive. The institutions needed to combat illegal drugs remain in a nascent state, and neither the institutions nor many of the officials within them are sufficiently competent to address the problems they face. This combination of a lack of competence and continued corruption results in Cambodia failing to meet the standards for full certification.

A vital national interests certification is necessary again this year to protect U.S. vital national interests in Cambodia. Democracy in Cambodia is progressing. This year the legislature passed laws to create an international tribunal to bring to trial the former leaders of the Khmer Rouge, a major step towards greater international acceptance and one that will require donor assistance to Cambodia. Should sanctions be imposed, it would not be possible for the United States Government to assist in strengthening Cambodia's democratic development. Cambodia remains vulnerable to drug trafficking and other crime due to the weakness of its institutions, a vulnerability that will also put at risk its immediate neighbors. This vulnerability would only be exacerbated by the consequences of decertification. The risks to democracy in Cambodia and to regional stability outweigh the risks posed by Cambodia's failure to fully implement effective drug control.

China

The People's Republic of China (hereafter, China) continued a multifaceted approach to combat the use and trafficking of illicit drugs. Preliminary figures suggest that heroin seizures will mirror those in 1999, which fell steeply from record levels in 1998, but most seizures of Burmese heroin now take place in China. Seizures of amphetamine-type stimulants (ATS) skyrocketed in 2000, demonstrating the growing threat from synthetic drugs in China.

For the first time, Chinese authorities provided the United States Government with samples of drugs seized en route to the United States. China cooperated with the United States and other countries in providing pre-export notification of dual-use precursor chemicals, and continues to cooperate actively on operational issues with the U.S. Drug Enforcement Administration through its office in Beijing. China eliminated new anonymous bank accounts to combat money laundering.

China's domestic counterdrug strategy emphasizes both education and rehabilitation. The approach includes anti-drug education for all school children, warnings to citizens of the link between intravenous drug use and HIV/AIDS, and a pilot "drug free communities" program.

During 2000, China cooperated with the UNDCP and regional states on projects on demand-reduction and on crop-substitution in Burma and Laos. The United States and China signed a Mutual Legal Assistance Agreement in June 2000, but China has not yet activated the bilateral Customs Mutual Assistance Agreement signed in 1999. In October, China signed a Memorandum of Understanding with Thailand to enhance counterdrug cooperation and in November signed a bilateral cooperation accord with Laos on transnational crimes, including illicit drug trafficking. China is a party to the 1988 UN Drug Convention, the 1961 UN Single Convention on Narcotic Drugs and its 1972 Protocol, and the 1971 UN Convention on Psychotropic Substances.

Law enforcement cooperation with the United States Government has advanced over the last three years, but China frequently does not respond to U.S. requests for information or responds too late to be of operational value. China has also continued its nonengagement in the Asia-Pacific Group on Money Laundering and did not pursue membership in the Financial Action Task Force.

Despite some shortcomings, China has acted forcefully to stop the production, trafficking in, and use of illicit drugs within its borders and within the region and is committed to achieving the goals of the 1988 UN Drug Convention.

Laos

Laos remains the world's third largest producer of illicit opium, behind Burma and Afghanistan. For the 2000 growing season, the United States Government estimates Laos's potential production at 210 metric tons, which is substantially greater than the 1999 estimate of 140 metric tons. Opium cultivation increased six percent. The higher production estimate can be attributed to improved weather conditions and an increase in estimated yields, although the increase in cultivation also contributed to a lesser degree.

Laos continued to cooperate with the United States Government in crop substitution projects. Most crop substitution project areas funded by the United States Government continued to show low levels of opium cultivation. As a first step for the new Lao-American project in Phongsali Province, construction began on a 72-kilometer road that will link remote, opium-cultivating villages. The Government of Laos also continued cooperation in Houapanh Province.

In March, the Government of Laos held its first national conference on drug control, at which counterdrug strategies and work plans were formulated. In October, Laos formally committed itself to eliminating opium by 2008 and all drugs by 2015, in accordance with the political statement and plan of action enacted by the Association of Southeast Asian Countries at a UNDCP Congress in Bangkok. The Government of Laos continued to work closely with the UNDCP to develop a master plan for opium elimination and to raise funds for that effort.

Cooperative efforts on law enforcement also continued. New counterdrug law enforcement offices opened in Champasak and Houapanh provinces, and the office in Udomxai moved to quarters refurbished with U.S. assistance. Seizures of heroin and methamphetamine increased sharply, and the Lao police cooperated with United States Government officials in counterfeit U.S. currency investigations. Police performance and law enforcement in general, however, continued to fall short of goals. Counterdrug police units need more training and better coordination. The Government of Laos is not yet a party to the 1988 UN Drug Convention; its stated goal is ratification of the convention in the near future, as agreed by all participants in the 1998 UN General Assembly Special Session on Drugs.

Thailand

Thailand has one of the world's most effective illicit drug crop control programs. United States analysts estimate that Thailand's opium production in the 2000 growing season remained at a maximum of 6 metric tons. Cultivation remained under 1,000 hectares for the second year in a row, although there was a slight increase to 890 hectares. Continuing trends established in previous years, opium farmers are cultivating smaller, more isolated fields and engaging in multiple cropping to avoid eradication.

Thailand remains a major drug transit country; a significant amount of heroin transits Thailand on its way to the United States. Throughout 2000, Thailand continued its long tradition of cooperation with the United States and the international community in anti-drug programs. With U.S. Drug Enforcement Administration support, the Royal Thai Police (RTP) established the fourth in a series of specially trained drug law enforcement units to target major trafficking groups. Despite treatment, epidemiology of substance abuse, and demand reduction programs, the epidemic of methamphetamine abuse grew, especially among the young. The methamphetamine problem underscored the need for cost-effective community-based models of addiction treatment and additional abuse-prevention training for both public and private sector health professionals.

Thailand enhanced its leadership role in transnational crime issues by co-managing the International Law Enforcement Academy (ILEA) in Bangkok with the United States. The bilateral extradition relationship continues to be highly successful, and Thailand continues to extradite its nationals to the United States under the treaty. Indeed, Thailand is one of the top countries in the world in cooperating with the United States on extradition requests. Extensive cooperative law enforcement programs continued to bear fruit. According to Royal Thai Government figures, 290 kilograms of heroin were seized and 9 methamphetamine labs were destroyed during the first 10 months of 2000. Despite Thailand's good record on counterdrug enforcement, many elements of government and society remain rampantly corrupt.

2000 was also a productive year for legislation and regulation. Implementing regulations for the 1999 Money Laundering Control Act came into effect in October 2000. The Act requires reporting for most financial transactions of more than 2 million baht (approximately $50,000). A senior police official has been named to head the 64-person money laundering control office. The Thai Cabinet approved accession to the 1988 UN Drug Convention and final arrangements are being undertaken by the Ministry of Foreign Affairs.

Vietnam

Vietnam intensified its efforts to combat the production, trafficking, and use of illicit drugs. Due to improved weather, Vietnam saw a 10 percent increase in poppy cultivation to 2,300 hectares in 2000 from 2,125 hectares in 1999. Potential opium production in 2000 increased 36 percent to 15 metric tons from 11 metric tons in 1999. The Government of Vietnam continued its efforts to reduce poppy cultivation through education, eradication, and crop-substitution programs. Drug seizures increased in most categories, although amounts seized were still small. Law enforcement officers seized 60 kilograms of heroin, 567 kilograms of opium, 2,200 kilograms of marijuana, 119,465 vials of addictive drugs, 66,192 doses of heroin, and 6,783 tablets of amphetamine-type stimulants (ATS), including methamphetamine. The quantities of opium, vials of addictive drugs, and tablets of ATS interdicted increased by 26.5 percent. Vietnam cooperated with the U.S. Drug Enforcement Administration, which opened an office in Hanoi in February 2000, and signed a counterdrug agreement with Japan in February 2000 providing for information sharing and training.

The Government of Vietnam received increased counterdrug funding from the United States, up from $11.6 million in 1999 to $14.3 million in 2000. The Government of Vietnam drafted a new two-stage Master Plan for 2001-2010. The Plan entailed 14 projects to combat drug production and trafficking and to strengthen education and drug-treatment programs, as well as an intensified one-year, six-point counterdrug program. The Government of Vietnam restructured and rationalized its drug control institutions. The National Assembly passed a counterdrug law, drafted with U.S. assistance, and legislation criminalizing money laundering.

The United States and Vietnam have not yet concluded a counterdrug agreement. Vietnam has not fully eradicated poppy crops, and farmers reverted to poppy cultivation in some high-poverty rural areas, increasing the total to 2,300 hectares devoted to poppy crops. Revisions to the Penal Code that criminalize money laundering took effect on July 1, 2000. Vietnam's new banking law also requires financial institutions to report suspicious transactions, although they are only reported to a central authority upon request.

Despite some notable shortcomings, Vietnam has made a vigorous effort to combat drug production and trafficking. There is no question that the Government of Vietnam at the highest levels fully realizes the threat drugs present to Vietnamese society and is doing everything possible to counter the availability and use of illicit drugs.

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(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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