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### Viewing cable 05THEHAGUE3305, 2005 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
05THEHAGUE3305 | 2005-12-12 14:32 | 2011-01-19 21:00 | UNCLASSIFIED | Embassy The Hague

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    UNCLAS SECTION 01 OF 09 THE HAGUE 003305

    SIPDIS

    DEPT FOR INL, INL/T, EUR/ERA, EUR/PGI, EUR/UBI
    DOJ FOR OIA, AFMLS, NDDS
    TREASURY FOR FINCIN
    USEU FOR WAGNER AND DOJ
    DEA HQS FOR OEE, OIE, AND OFFICE OF CHEMICAL DIVERSION

    E.O. 12958: N/A
    TAGS: SNAR PREL PGOV KCRM NL
    SUBJECT: 2005 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT
    (INCSR): THE NETHERLANDS - PART 1, DRUGS AND CHEMICAL
    DIVERSION CONTROL

    REF: (A) STATE 209561

    ----------
    ¶I. Summary
    ----------

    ¶1. The Netherlands continues to be a significant transit
    point for drugs entering Europe (especially cocaine), an
    important producer and exporter of synthetic drugs
    (particularly Ecstasy - MDMA), and a substantial consumer of
    most illicit drugs. The current Dutch center-right coalition
    has made measurable progress in implementing a five-year
    strategy (2002-2006) against production, trade and
    consumption of synthetic drugs. According to the public
    prosecutor's office, the number of Ecstasy tablets seized in
    the U.S. that could be linked to the Netherlands dropped to
    0.2 million in 2004 from 1.1 million in 2003 and 2.5 million
    in 2002. This number does not take into account the amount of
    Ecstasy seized in Canada that is destined for the U.S.
    Operational cooperation between U.S. and Dutch law
    enforcement agencies is excellent, despite some differences
    in approach and tactics. In July 2005, ONDCP Director John
    Walters and Dutch Health Minister Hans Hoogervorst signed an
    agreement to exchange scientific and demand reduction
    information. The Netherlands actively participates in DEA's
    El Paso Information Center (EPIC). The 100% controls at
    Schiphol airport on inbound flights from the Caribbean and
    some South American countries have resulted in a dramatic
    decline in the number of drug couriers. Dutch popular
    attitudes toward soft drugs remain tolerant to the point of
    indifference. The Government of the Netherlands (GONL) and
    the public view domestic drug use as a public health issue
    first and a law enforcement issue second. End summary.

    ---------------------
    II. Status of Country
    ---------------------

    ¶2. The central geographical position of the Netherlands,
    with its modern transportation and communications
    infrastructure, one of the world's busiest container port in
    Rotterdam and one of Europe's busiest airports, makes the
    country an attractive operational area for international drug
    traffickers and money launderers. Production of Ecstasy and
    marijuana is significant; there is also production of
    amphetamines and other synthetic drugs. The Netherlands also
    has a large (legal) chemical sector, making it an opportune
    location for criminals to obtain or produce precursor
    chemicals used to manufacture illicit drugs.

    ------------------------------------------
    III. Country actions against drugs in 2005
    ------------------------------------------

    Policy Initiatives
    --------------------

    ¶3. Major Dutch government policy initiatives in 2005
    include:

    ¶4. The National Crime Squad (Nationale Recherche or NR),
    which officially started functioning in January 2004, had a
    very successful year in 2005. Not only did it make the
    largest cocaine seizure ever in the Netherlands, it also
    dismantled the largest Ecstasy laboratory ever found in the
    country (see below for more details).

    Cannabis
    --------

    ¶5. As announced in the 2004 Cannabis Letter, the Dutch
    Government has given top priority to discouraging drug
    tourism and cannabis cultivation, particularly in the
    southern border regions. In November 2005, Justice Minister
    Donner sent the Second Chamber an assessment of the
    government's cannabis policy, highlighting the most important
    developments:

    - Maastricht shortly is expected to begin the trial project
    with special coffeeshop passes for its local residents. If
    successful, the experiment, which will limit the purchase
    soft drugs in Dutch coffeeshops to Dutch nationals, will be
    expanded;
    - In October 2005, Justice Minister Donner proposed amending
    the Opium Act to make it easier for local governments to
    close down premises where drugs are sold illegally.
    Currently, closure of such drug premises is possible with a
    judge's order, but only if there is concrete evidence they
    are causing serious public nuisance;

    - The public prosecutor's office and the police in the
    southern provinces of Brabant and Limburg have started a
    pilot project targeting the criminal organizations behind
    illegal cannabis cultivation, rather than merely focusing on
    individual growers;

    - In anticipation of parliamentary ratification of the
    bilateral law enforcement cooperation treaties with Germany
    and Belgium, practical measures have been taken to reduce
    drug trafficking in border regions. Cross-border
    surveillance has been intensified and license numbers of drug
    tourists are being exchanged;

    - To implement the EU framework decision on illegal drug
    trafficking of November 2004, the Government currently is
    drafting a proposal raising the sentence for large-scale
    cannabis cultivation and illegal cannabis trafficking either
    or not in organized form from 4 to 6 years' imprisonment;

    - The 2004 National Drug Monitor, published by the Trimbos
    Addiction Institute in April 2005, showed that recent (within
    the last-month) cannabis use among young people aged 12-18
    dropped from 11% in 1996 to 9% in 2003. Lifetime prevalence
    (ever-used) of cannabis in this age group dropped from 22% to
    19% over the same period. In 2004, Trimbos began a 3-year
    mass- media publicity campaign, subsidized by the Health
    Ministry, to discourage cannabis use among young people;

    - The average THC content in Dutch-grown cannabis
    (Nederwiet) was 20% in 2003-2004, and appears to be
    stabilizing at between 17 and 20%. The State Institute for
    Health and Environment (RIVM) has been ordered to investigate
    acute health risks of cannabis with high THC levels. Results
    of this study are expected in March 2006.

    ¶6. A July 2005 study estimated the total number of
    coffeeshops in the Netherlands at 737 at the end of 2004,
    down from 754 in 2002. Only 22% of the 483 Dutch
    municipalities allow coffeeshops within their cities - 70% do
    not allow any at all. Half of all coffeeshops are located in
    the five largest cities. On average, coffeeshops are
    controlled four times per year, and criteria for operating
    such shops usually are well observed.

    ¶7. In a November 28, 2005 letter to the Second Chamber,
    Health Minister Hoogervorst stated that legal sales of
    medicinal cannabis by pharmacies have largely failed. He
    said the policy to allow medicinal sales in pharmacies could
    only be effective if an official cannabis-based medicine were
    registered. Hoogervorst intends to end the experiment if the
    pharmaceutical industry fails to develop such a medicine
    within one year. Since March 2003, doctors have been allowed
    to prescribe medicinal cannabis for their chronically ill
    patients. The Health Ministry's Bureau for Medicinal
    Cannabis buys the cannabis from two official growers,
    controls quality and organizes the distribution.

    Cocaine Trafficking
    -------------------

    ¶8. In July 2005, the Justice Ministry expanded prosecutions
    of South American and Caribbean cocaine couriers at Schiphol
    airport. Previously, the government only prosecuted couriers
    carrying 3 kilos or more of cocaine; couriers carrying
    smaller quantities were sent home. Under the new policy,
    couriers carrying 1.5 or more kilos are prosecuted.
    Government officials expect to prosecute all couriers,
    regardless of quantity carried, by January 2006. This has
    become possible because of the dramatic decline in the number
    of couriers due to the stricter controls. During a Justice
    Ministry budget debate in November 2005, the Second Chamber
    questioned the high amount of money spent annually on the
    100% controls: 27 million euros by Justice, and 6.5 million
    euros each by the KMAR military police and Customs. In early
    2006, the Justice Ministry will publish an assessment of the
    Schiphol drug policy, including a long-term plan.

    ¶9. In September 2005, Justice Minister Donner signed
    agreements with his Colombian and Venezuelan counterparts on
    intensified cooperation in combating cocaine trafficking in
    the regions.

    ¶10. In June 2005, the Justice Ministry agreed to resume
    sharing the list of all blacklisted Schiphol couriers with
    DEA's El Paso Intelligence Center (EPIC) after a two-month
    hiatus due to Dutch concerns over privacy protections. To
    date, approximately 5,300 courier names have been provided to
    EPIC.

    ¶11. In August 2005, the Rotterdam police seized 4,500 kilos
    of cocaine - the largest cocaine seizure ever in the
    Netherlands. The cocaine, hidden inside two large steel
    cable spools, was worth an estimated 273 million dollars.
    The investigation involved close cooperation with DEA offices
    in Spain, Belgium, and the Netherlands. Cooperation among
    Dutch, German and Spanish police led to the seizure of 1,650
    kilos of cocaine at the Port of Rotterdam in November. The
    cocaine, with an estimated street value of 60 million
    dollars, was hidden in tins of asparagus and red peppers.

    Ecstasy
    ---------

    ¶12. In July 2005, Justice Minister Donner submitted to the
    Second Chamber an interim evaluation of the Government's 2002-
    2006 Ecstasy action plan. The report, which covers the
    period up to 2004, indicated positive effects, such as
    increased seizures, suspects, and completed investigations.
    (For more details, see para on cultivation/production.)

    ¶13. On November 29, 2005, the National Crime Squad (NR) and
    the FIOD-ECD fiscal and economic investigation service
    dismantled the largest Ecstasy lab ever found in the
    Netherlands. The professional lab was found in Nederweert
    (southern Limburg province), and was estimated to have had a
    production capacity of 20 million Ecstasy tablets. The
    police also found more than 300 liters of PMK and a small
    quantity of MDMA powder and amphetamine. In addition, more
    than 50,000 liters of chemicals were discovered at a
    different location. Six people were arrested, all of them
    from Limburg province. The investigation, which began in May
    2005, was carried out in close cooperation with German and
    Belgian authorities. This was the first Ecstasy lab
    discovered in 2005; previously, only amphetamine laboratories
    had been found this year.

    Heroin Experiment
    -----------------

    ¶14. In June 2005, Ministers Donner and Hoogervorst informed
    the Second Chamber that projects providing free heroin to
    hard-core drug addicts would be expanded to another 15
    municipalities, for which 7 million euros would be made
    available over the next few years. Amsterdam, Rotterdam, The
    Hague, Utrecht, Groningen and Heerlen already have such
    projects, which include a total of 300 addicts. In total,
    980 addicts could be treated with the extra money.

    Accomplishments
    ---------------

    ¶15. The new National Crime Squad (NR) has proved very
    effective in drug investigations, and resulted in closer
    cooperation with the DEA. In July 2005, the national police
    (KLPD) assigned a liaison officer to China to work on joint
    precursor chemical investigations. In addition to working
    directly with the Chinese, the Netherlands is an active
    participant in the INCB/PRISM project's taskforce.
    Law Enforcement Efforts
    -----------------------

    ¶16. Overall the Health Ministry coordinates drug policy,
    while the Ministry of Justice is responsible for law
    enforcement. Matters relating to local government and the
    police are the responsibility of the Ministry of Interior. At
    the municipal level, policy is coordinated in tripartite
    consultations among the mayor, the chief public prosecutor
    and the police.

    ¶17. The Dutch Opium Act punishes possession, commercial
    distribution, production, import, and export of all illicit
    drugs. Drug use, however, is not an offense. The act
    distinguishes between hard drugs that have unacceptable
    risks (e.g., heroin, cocaine, Ecstasy), and soft drugs
    (cannabis products). Trafficking in hard drugs is
    prosecuted vigorously and dealers are subject to a prison
    sentence of up to 12 years. When trafficking takes place on
    an organized scale, the sentence is increased by one-third
    (up to 16 years). Sales of small amounts of cannabis
    products (under five grams) are tolerated (i.e., not
    prosecuted, even though technically illegal) in coffeeshops
    operating under regulated conditions (no minors on premises,
    no alcohol sales, no hard drug sales, no advertising, and not
    creating a public nuisance).

    ¶18. The Dutch National Police (KLPD) and the National
    Prosecutors office continue to give high priority to
    combating the illegal drug trade. The new National Crime
    Squad (Nationale Recherche - NR), a branch of the KLPD,
    became operational on January 1, 2004; two of the NR's
    primary missions are investigating of smuggling and cross
    border trade in cocaine and heroin, and investigating the
    production and trade of synthetic drugs. As part of the
    bilateral Next Steps law enforcement negotiations, DEA has
    obtained increased access to the NR office in The Hague,
    which focuses on cocaine investigations, and is working
    toward a similar relationship with the NR office in Helmond,
    which focuses on synthetic drugs. In September 2004, DEA
    assigned an additional special agent to The Hague Country
    Office, increasing the office's manpower to six, the largest
    it has ever been.

    ¶19. In April 2005, the Dutch participated in the
    International Drug Enforcement Conference (IDEC) in Santiago,
    Chile. This conference, involving approximately 50 nations,
    meets to share drug intelligence, identify joint targets and
    assist in coordinating international drug trafficking
    investigations. In July 2005, the KLPD assigned a liaison
    officer to Beijing, China to facilitate joint cooperation on
    precursor chemical investigations. In November 2005, the
    Dutch hosted the Synthetic Drug Enforcement Conference
    (SYNDEC II), which focused on ways to increase international
    cooperation on synthetic drug and precursor chemical
    investigations.

    ¶20. All foreign law enforcement assistance requests continue
    to be sent to the DIN (International Network Service), a
    division of the NR. The DIN has assigned two liaison
    officers to assist DEA and other U.S. law enforcement
    agencies. Since the reorganization into the NR, the DIN has
    allowed DEA and other liaison officers to contact one of the
    five NR offices directly with requests. In addition, DEA has
    been allowed to contact regional police offices on a case-by-
    case basis. This policy has permitted better coordination
    during ongoing enforcement actions, such as controlled
    deliveries and undercover operations. Under Dutch law
    enforcement policy, prosecutors still control most aspects of
    an investigation. Dutch police officers must get prosecutor
    concurrence to share police-to-police information directly
    with foreign liaison officers. This can hamper the quick
    sharing of information, which could be used proactively in an
    ongoing investigation. However, the quick sharing of police-
    to-police information is improving as a result of the
    increased access for DEA agents with NR units. This improved
    information sharing led to the seizure of approximately 4,500
    kilograms of cocaine and the dismantling of a Colombian
    cocaine transportation cell operating in the Netherlands and
    Spain in September 2005. Dutch law enforcement has also
    become much more willing to undertake controlled delivery
    operations with DEA. In fiscal year 2004, the Dutch did not
    accept any requests from DEA for controlled delivery
    operations. In FY 2005, the Dutch and DEA conducted 10
    inbound controlled deliveries of cocaine. This trend is
    continuing with three controlled delivery operations
    attempted so far in FY 2006. Most of these controlled
    deliveries are small amounts of cocaine (less than five
    kilograms) contained in parcels being sent from South America
    or the Caribbean.

    ¶21. The 100% controls on inbound flights from the Caribbean
    and some South American countries continue at Schiphol
    Airport. Currently couriers with more than 1.5 kilograms of
    cocaine are prosecuted. The Dutch Ministry of Justice
    anticipates prosecuting all cocaine couriers, regardless of
    quantity, at Schiphol beginning in January 2006. The
    manpower required to conduct these 100% controls remains a
    major monetary expense and logistical challenge for the
    authorities at Schiphol. The program negatively affects the
    number of flights targeted for outbound checks, and as a
    result, the number of outbound drug couriers going to the
    United States arrested at Schiphol remains low.

    Corruption
    ----------

    ¶22. The Dutch government is committed to fighting national
    and international corruption. It does not encourage or
    facilitate illicit production or distribution of narcotic or
    psychotropic drugs or other controlled substances, or the
    laundering of proceeds from illegal drug transactions. No
    senior official of the Dutch government engages in,
    encourages or facilitates the illicit production or
    distribution of such drugs or substances, or the laundering
    of proceeds from illegal drug transactions. Press reports of
    low-level law enforcement corruption appear from time to time
    but the problem is not believed to be widespread or systemic.
    In November 2005, 140 officers of the special Schiphol
    CargoHarc drug team staged a preventive security control
    action of the airport's baggage basement, searching for drugs
    and other potential criminal activities. The action did not
    result in any arrests.

    Agreements and Treaties
    -----------------------

    ¶23. The Netherlands is party to the 1988 UN Drug Convention,
    the 1971 UN Convention on Psychotropic Substances, the 1961
    Single Convention on Narcotic Drugs, and the 1972 Protocol
    amending the Single Convention. The Netherlands is a member
    of the UN Commission on Narcotics Drugs and the major donors
    group of the UNODC. The Netherlands is a leading member of
    the Dublin Group of countries coordinating drug-related
    assistance. The Netherlands ratified the UN Convention on
    Transnational Organized Crime in 2004, and ratified the
    protocols on trafficking in persons and migrant smuggling in
    ¶2005.

    Cultivation and Production
    --------------------------

    ¶24. Although commercial (indoor) cultivation of hemp is
    banned, about 80 percent of the Dutch cannabis market is
    Dutch-grown marijuana (Nederwiet). A 2004 national police
    report of the Dutch drug market estimated the Netherlands has
    between 17,000-22,000 cannabis plantations producing about
    68,000-99,000 kilos of Nederwiet. In 2004, 2,261 hemp
    plantations were dismantled, up from 1,867 in 2003. Although
    the Dutch government has given top priority to the
    investigation and prosecution of large-scale commercial
    cultivation of Nederwiet, tolerated coffeeshops appear to
    create the demand for such cultivation. To end the
    controversial policy of allowing front-door cannabis sales
    in coffeeshops but banning back-door deliveries, a Second
    Chamber majority urged the Government in October 2005 to
    approve a trial program regulating cannabis cultivation.
    Proponents, including the Mayors of Amsterdam and Maastricht,
    argued that the measure would end large-scale home
    cultivation, in which organized crime plays an important
    role. Justice Minister Donner and Interior Minister Remkes
    strongly opposed the experiment on the grounds that it would
    violate international treaties to which the Netherlands is
    committed.

    ¶25. The Netherlands remains one of the largest producers of
    synthetic drugs, although the National Crime Squad (NR) has
    noted a production shift to Eastern Europe. According to the
    NR, there also appears to be a shift from Ecstasy to
    amphetamine production. According to a July 2005 report by
    the National Crime Squad (NR), 197 Ecstasy suspects were
    arrested in 2004, down from 214 in 2003. The NR seized
    11,120 liters of chemical precursors compared to 11,453
    liters in 2003. The NR completed 60 criminal investigations
    in 2004 and 40 in 2003. The Fiscal and Economic
    Investigation Service (FIOD-ECD) completed 23 investigations
    in 2004 and 19 in 2003. The total number of Ecstasy tablets
    with an alleged Dutch connection confiscated by U.S.
    authorities continued to drop from almost 2.3 million tablets
    in 2002, and 1.1 million in 2003, to about 0.2 million in
    ¶2004. The number of registered Ecstasy tablets seized in the
    Netherlands totaled 5.6 million in 2004, compared to 5.4
    million in 2003.

    ¶26. According to the same NR report, 2004 drug seizures
    around the world that could be related to the Netherlands
    involved more than 10 million MDMA tablets (2003: 12.9
    million) and more than 1,000 kilos (2003: 870 kilos) of MDMA
    powder. MDMA (powder and paste) seizures in the Netherlands
    in 2004 dropped to 303 kilos from 435 kilos in 2003. The
    number of dismantled production sites in the Netherlands for
    synthetic drugs dropped to 29 in 2004 from 37 in 2003. Of
    the 29 production sites, 13 were for amphetamine and 11 for
    Ecstasy production, and 5 were meant for Ecstasy tableting.

    Drug Flow/Transit
    -----------------

    ¶27. The Netherlands remains an important point of entry for
    drugs to Europe, especially cocaine. According to a November
    2003 report by the National Crime Squad, an estimated 40,000-
    50,000 kilos of cocaine are smuggled annually into the
    Netherlands, of which about 20,000 kilos enter via Schiphol
    and the remainder via seaports and road from Spain (Dutch
    cocaine use is estimated at 4,000-8,000 kilos annually). The
    Dutch government has stepped up border controls to combat the
    flow of drugs, including the successful Schiphol Action Plan.
    Cocaine seizures in the Netherlands dropped to 12,387 kilos
    in 2004, of which about 8,155 kilos were seized at Schiphol.
    The government has expanded the number of container scanners
    in the port of Rotterdam and at Schiphol airport. Controls
    of highways and international trains connecting the
    Netherlands to neighboring countries have also been
    intensified.

    Money Laundering
    ----------------

    ¶28. The Netherlands participates in the FATF. Forty
    separate anti-money laundering measures recommended by FATF
    have been integrated in the financial sector. Additionally,
    legislation making money laundering a separate, stand-alone,
    offense became effective in 2002. (Septel)

    Asset Seizures
    --------------

    ¶29. The Dutch have signed the Strasbourg Convention and have
    drawn up national legislation to enable courts to confiscate
    the proceeds of drug-related crime. The U.S. and the
    Netherlands have an asset seizure agreement.

    Extradition and Mutual Legal Assistance Treaty
    --------------------------------------------- -

    ¶30. The U.S. and the Netherlands have fully operational
    extradition and mutual legal assistance agreements (MLAT).
    Some defense attorneys, however, have argued that suspects
    who may be accused in the United States of terrorist offences
    should not be extradited because of the way they may be
    treated in the U.S. Courts have been receptive to this
    argument.

    Demand Reduction
    ----------------

    ¶31. The Netherlands has a wide variety of demand and harm-
    reduction programs, reaching about 80 percent of the
    country's 26,000-30,000 opiate addicts. The number of opiate
    addicts is low compared to other EU countries (2.6 per 1,000
    inhabitants); the number has stabilized over the past few
    years; the average age has risen to 40; and the number of
    overdose deaths related to opiates has stabilized at between
    30 and 50 per year. Needle supply and exchange programs have
    kept the incidence of HIV infection among intravenous drug
    users relatively low. Of the addicts known to the addiction
    care organizations, 75 percent regularly use methadone.

    ¶32. According to the 2004 National Drug Monitor, the out-
    patient treatment centers registered some 29,173 drug users
    seeking treatment for their addiction in 2003, compared to
    27,768 in 2002. The number of cannabis addicts seeking
    treatment rose to 4,485 in 2003 from 3,701 in 2002, but the
    number of opiate addicts seeking treatment dropped from
    16,043 in 2002 to 15,195 in 2003. Statistics from drug
    treatment services show a sharp increase in the number of
    people seeking help for cocaine addiction, from 6,103 in 2000
    to 9,216 in 2003. About 65 percent of addicts seeking help
    for cocaine problems are crack cocaine users.

    ¶33. Drug use among students ages 12-18, 1999 and 2003
    (percent reporting life-time (ever) use and last-month use)

    Life-time use Last-month use
    ------------- --------------
    1999 2003 1999 2003

    Cannabis 20.0 19.0 9.0 9.0
    Cocaine 2.8 2.2 1.2 0.8
    Heroin 0.8 1.1 0.4 0.5
    Amphetamine 2.8 2.2 1.1 0.8
    Ecstasy 3.9 2.9 1.4 1.2

    (Source: National Drug Monitor 2004, Trimbos Institute

    Prevention
    ----------

    ¶34. Drug prevention programs are organized through a network
    of local, regional and national institutions. Schools are
    targeted in efforts to discourage drug use, while national
    campaigns are conducted in the mass media to reach the
    broader public. The Netherlands requires school instruction
    on the dangers of alcohol and drugs as part of the health
    education curriculum. The Netherlands Institute of Mental
    Health and Addiction (the Trimbos Institute) has developed a
    project in the field of alcohol and drugs in the context of
    teaching healthy living in classrooms. About 75 percent of
    Dutch secondary schools participate in the project. In 2004,
    the Health Ministry and the Trimbos Institute launched a
    three-year cannabis information campaign warning young people
    in the 12-18 age group about the health risks. The 24-hour
    national Drug Info Line of the Trimbos Institute has become
    very popular.

    ---------------------------
    IV. U.S. Policy Initiatives
    ---------------------------

    Bilateral Cooperation
    ---------------------
    ¶35. U.S. and Dutch law enforcement agencies maintained
    excellent operational cooperation, with principal attention
    given to countering the Netherlands' role as a key source
    country for MDMA/Ecstasy entering the U.S. The U.S. Embassy
    in The Hague has made the fight against the Ecstasy threat
    one of its highest priorities. Dutch law enforcement has
    dramatically improved its acceptance of controlled delivery
    operations with the DEA, but continues to resist use of
    criminal infiltrants in investigations of drug traffickers.
    They are also reluctant to admit the involvement of large,
    international drug organizations in the local drug trade and
    do not use their asset forfeiture rules often. The fourth
    bilateral law enforcement talks, which were held in
    Washington in April 2005, resulted in additional agreements
    to the Agreed Steps list of action to enhance law
    enforcement cooperation in fighting drug trafficking.

    ¶36. The U.S. and the Netherlands cooperate closely on law
    enforcement activities throughout the Kingdom of the
    Netherlands. The U.S. is also working with the Kingdom to
    assist Aruba and the Netherlands Antilles in countering
    narcotics trafficking. The 10-year FOL agreement between the
    U.S. and the Kingdom for the establishment of forward
    operating locations on Aruba and Curacao became effective in
    October 2001.

    ¶37. Since 1999, the Dutch Organization for Health Research
    and Development (ZonMw) has been working with NIDA on joint
    addiction research projects.

    The Road Ahead
    --------------

    ¶38. We expect U.S.-Dutch bilateral law enforcement
    cooperation to intensify in 2006. The bilateral Agreed
    Steps process will continue to promote closer cooperation in
    international investigations, including Ecstasy and money
    laundering cases. In particular, increased access for DEA
    agents to NR drug units is expected to result in enhanced
    police-to-police information sharing and coordination. The
    Dutch government's Ecstasy Action Plan is expected to result
    in further improvements in Dutch counter narcotics efforts.
    The Dutch synthetic drug unit, which now is part of the
    National Crime Squad, will continue to make concrete
    progress. The stationing of the Dutch liaison officer in
    China in July 2005 is expected to increase cooperation among
    the U.S., China and the Netherlands on precursor chemicals.
    We have also noticed improved and expedited handling of
    extradition requests.

    -------------
    ¶V. Statistics
    -------------

    ¶37. Drug Seizures
    2003 2004
    ---- ----
    Heroin (kilos) 417 1,244
    Cocaine (kilos) 17,560 12,387
    Ecstasy (tablets) 5,420,033 5,600,193
    Ecstasy (powder and paste)(kilos) 435 303
    Ecstasy production sites 37 29
    Amphetamine (kilos) 843 533
    Amphetamine (tablets) 14,000 10,355
    LSD (doses) - 52,000
    LSD (tablets) 1,642 -
    Methadone (tablets) 57,430 13,866
    Cannabis resin (kilos) 10,719 16,101
    Marijuana (kilos) 7,067 7,491
    Nederwiet (kilos) 1,179 2,163
    Hemp plants 1,111,855 1,127,174
    Dismantled hemp plantations 1,867 2,261

    (Source: KLPD National Police Force)

    Chemical Control
    ----------------
    ¶38. Responses below are keyed to the questions in reftel.

    -- (a) The Netherlands is a party to the 1988 UN Drug
    Convention and 1990 European Union Regulations. Trade in
    precursor chemicals is governed by the 1995 Act to Prevent
    Abuse of Chemical Substances (WVMC). The law seeks to
    prevent the diversion of legal chemicals into the illegal
    sector. Violations of the law can lead to prison sentences
    (maximum of six years), fines (up to 50,000 Euros), or asset
    seizures. The Fiscal and Economic Information and
    Investigation Service (FIOD-ECD) oversees implementation of
    the law.

    The NR synthetic drug unit and the Public Prosecutor's Office
    have strengthened cooperation with countries playing an
    important role in Ecstasy production, in particular with
    countries exporting chemical precursors. The GONL signed an
    MOU with China concerning chemical precursor investigations.

    -- b) The Dutch continue to work closely with the U.S. on
    precursor chemical controls and investigations. This
    cooperation includes formal and informal agreements on the
    exchange of intelligence. The Netherlands is an active
    participant in the INCB/PRISM project's taskforce.

    -- (c) Yes, the Netherlands is a party to agreements on a
    method of maintaining records of transactions of an
    established list of precursor and essential chemicals.

    -- (d) The Netherlands established such procedures in 1994.

    -- (e) The Netherlands has efficient national chemical
    control legislation in place which imposes record keeping and
    reporting requirements for listed chemicals.

    -- (f) No, the Netherlands doesn't encourage illicit
    production of controlled substances or the laundering of
    proceeds from illegal drug transactions.

    -- (g) No.

    Blakeman

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