[Federal Register Volume 68, Number 24 (Wednesday, February 5, 2003)]
[Presidential Documents]
[Pages 5787-5791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-2960]


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  Federal Register / Vol. 68, No. 24 / Wednesday, February 5, 2003 / 
Presidential Documents  

[[Page 5787]]


                Presidential Determination No. 2003-14 of January 30, 
                2003

                
Presidential Determination on Major Drug Transit 
                or Major Illicit Drug Producing Countries for 2003

                Memorandum for the Secretary of State

                Pursuant to section 706(1) of the Foreign Relations 
                Authorization Act, Fiscal Year 2003 (Public Law 107-
                228) (FRAA), which was enacted on September 30, 2002, I 
                hereby identify the following countries as major drug 
                transit or major illicit drug producing countries: 
                Afghanistan, The Bahamas, Bolivia, Brazil, Burma, 
                China, Colombia, Dominican Republic, Ecuador, 
                Guatemala, Haiti, India, Jamaica, Laos, Mexico, 
                Nigeria, Pakistan, Panama, Paraguay, Peru, Thailand, 
                Venezuela, and Vietnam.

                The Majors List applies by its terms to countries. The 
                United States Government interprets the term broadly to 
                include entities that exercise autonomy over actions or 
                omissions that could lead to a decision to place them 
                on the list and, subsequently, to determine their 
                eligibility for certification. A country's presence on 
                the Majors List is not necessarily an adverse 
                reflection of its government's counternarcotics efforts 
                or level of cooperation with the United States. 
                Consistent with the statutory definition of a major 
                drug transit or drug producing country set forth in 
                section 481(e)(5) of the Foreign Assistance Act of 
                1961, as amended (FAA), one of the reasons that major 
                drug transit or drug producing countries are placed on 
                the list is the combination of geographical, 
                commercial, and economic factors that allow drugs to 
                transit or be produced despite the concerned 
                government's most assiduous enforcement measures.

                Pursuant to section 706(2)(A) of the FRAA, I hereby 
                designate Burma, Guatemala, and Haiti as countries that 
                have failed demonstrably during the previous 12 months 
                to adhere to their obligations under international 
                counternarcotics agreements and take the measures set 
                forth in section 489(a)(1) of the FAA. Attached to this 
                memorandum are justifications for each of the countries 
                so designated, as required by section 706(2)(B).

                I have also determined, in accordance with provisions 
                of section 706(3)(A) of the FRAA, that provision of 
                United States assistance to Guatemala and Haiti in FY 
                2003 is vital to the national interests of the United 
                States.

                Additionally, the alarming increase in the quantity of 
                illegal synthetic drugs entering the United States, 
                especially ecstasy from Europe, is of particular 
                concern. A significant amount of the ecstasy consumed 
                in the United States is manufactured clandestinely in 
                The Netherlands (in 2001, a total of 9.5 million 
                ecstasy tablets were seized in the United States, and 
                the Drug Enforcement Administration believes that the 
                majority of tablets originated in The Netherlands). We 
                are working closely with Dutch authorities to stop the 
                production and export of ecstasy, which we both regard 
                as a serious threat to our citizens. We expect Dutch 
                authorities to move effectively and measurably in the 
                coming year against the production and export of this 
                drug, including dismantling labs and proceeding against 
                trafficking organizations. Early in the year, we plan 
                to discuss specific steps we can take together to 
                reduce drug trafficking.

                Although the United States enjoys an excellent level of 
                bilateral cooperation with Canada, the United States 
                Government is concerned that Canada is a primary source 
                of pseudoephedrine and an increasing source of high 
                potency marijuana, which are exported to the United 
                States. Over the past

[[Page 5788]]

                few years there has been an alarming increase in the 
                amount of pseudoephedrine diverted from Canadian 
                sources to clandestine drug laboratories in the United 
                States, where it is used to make methamphetamine. The 
                Government of Canada, for the most part, has not 
                regulated the sale and distribution of precursor 
                chemicals. The regulations to restrict the availability 
                of pseudoephedrine, which the Government of Canada has 
                just promulgated, should be stronger. Notwithstanding 
                Canada's inadequate control of illicit diversion of 
                precursor chemicals, I commend Canadian law enforcement 
                agencies, which continue to work energetically to 
                support our joint law enforcement efforts.

                Under section 706 of the FRAA, you are hereby 
                authorized and directed to submit this memorandum to 
                the Congress, and to publish it in the Federal 
                Register.

                    (Presidential Sig.)B

                THE WHITE HOUSE,

                    Washington, January 30, 2003.

Billing code 4710-10-M


[[Page 5789]]

                Statement of Explanation

                Burma

                The United States has determined that Burma failed 
                demonstrably to make sufficient efforts during the last 
                12 months to meet its obligations under international 
                counternarcotics agreements and the counternarcotics 
                requirements set forth in section 489(a)(1) of the 
                Foreign Assistance Act of 1961, as amended.

                Burma remains the world's number one producer and 
                trafficker of methamphetamine and the world's second 
                largest producer and trafficker of heroin. Judging from 
                the situation in neighboring countries, production and 
                trafficking of methamphetamine from Burma continues to 
                be one of the most serious problems facing Southeast 
                Asia. Drug gangs operate freely within Burma along its 
                borders with China and Thailand, producing several 
                hundred million methamphetamine tablets annually by 
                using precursors imported from neighboring states.

                Although Burma banned the import, sale, and use of 25 
                precursor chemicals and related substances used in the 
                production of methamphetamine in 2002, Burma has yet to 
                take effective measures against methamphetamine 
                production and trafficking or the importation of 
                precursor chemicals from neighboring states used in the 
                production of methamphetamine. Hundreds of millions of 
                methamphetamine tablets flooded the region, and 
                seizures of methamphetamine went down significantly in 
                2002 (about 9 million tablets compared to 32 million in 
                2001), representing only a tiny fraction of the 
                estimated production. In addition, the government 
                destroyed a smaller number of methamphetamine and 
                heroin labs in 2002 compared to the previous year.

                Burma has also yet to curb involvement in illicit 
                narcotics by the largest, most powerful, and most 
                important trafficking organization within its borders, 
                the United Wa State Army (UWSA). Although the 
                government claims it has increased pressure on the UWSA 
                to end opium production, major UWSA traffickers 
                continue to operate with apparent impunity and UWSA 
                involvement in methamphetamine production and 
                trafficking remains a serious concern.

                While the United States gives Burma a failing grade due 
                to the magnitude of the above issues, we do note some 
                progress on several counternarcotics fronts. Although 
                Burma remains the world's second largest producer of 
                illicit opium, opium production in Burma declined 26 
                percent in the past year, seizures of heroin and opium 
                increased, and the government has initiated several 
                cases against accused money-launders under new anti-
                money laundering laws.

                The Government of Burma (GOB) also continued to 
                cooperate with regional and international 
                counternarcotics agencies and organizations, resulting 
                in several cases against traffickers and their 
                organizations in cooperation with the United States, 
                Australia, Thailand, China, and others. Increased 
                cooperation with China, in particular, resulted in the 
                rendering of several narco-traffickers to China in 
                2002.

                We urge the GOB to redouble efforts in those areas 
                where it is making progress and to address those major 
                gaps where it has made no serious efforts to date.

                Guatemala

                Despite improvements towards the end of the year, 
                Guatemala failed demonstrably during the last 12 months 
                to make substantial efforts to adhere to its 
                obligations under international counternarcotics 
                agreements and to take the counternarcotics measures 
                set forth in section 489(a)(1) of the Foreign 
                Assistance Act of 1961, as amended. Guatemala remains a 
                major transshipment point for drugs, primarily cocaine, 
                moving from South America

[[Page 5790]]

                to the United States. However, the vital national 
                interests of the United States require the United 
                States to continue providing assistance to Guatemala 
                under the Foreign Operations, Export Financing, and 
                Related Programs Act, 2002 (P.L. 107-115).

                During 2002, Guatemala's overall counterdrug commitment 
                deteriorated. The Government of Guatemala's (GOG) 
                counternarcotics efforts traditionally have been 
                limited by a lack of resources for police, prosecutors, 
                and judges. However, in 2002, a heightened level of 
                corruption also impeded significant progress in the 
                battle against narcotrafficking. Seizures of illegal 
                narcotics and narcotics-related prosecutions in 
                Guatemala were dramatically lower than in years past, 
                despite evidence that the flow of illegal drugs had not 
                diminished. Efforts to pass and implement anti-
                corruption and transparency legislation floundered. Few 
                high-level figures were formally investigated or 
                indicted, and the Anti-Narcotics Police was disbanded 
                after several attempts at reform and the firing or 
                reassignment of 75% of all personnel. The majority of 
                Anti-Narcotics Prosecutors were also removed or 
                transferred in the last year due to poor performance. 
                During 2002, police stole an amount of drugs estimated 
                at double the amount officially seized, and were 
                identified as responsible for drug-related extra-
                judicial executions of both narcotraffickers and 
                civilians.

                Toward the end of 2002, at the request of the United 
                States the GOG took some positive counternarcotics 
                steps. The GOG promulgated regulations to implement the 
                modern money laundering legislation passed in 2001 
                (though there have been no convictions to date). A 
                number of police officers were arrested and others 
                removed from office in connection with a gun battle 
                over a drug shipment in the town of Chocon. The GOG 
                recently began regularly destroying newly confiscated 
                drugs not needed for evidence, and, in December, 
                destroyed a modest amount of drugs stored from older 
                cases.

                Despite Guatemala's demonstrable failure on 
                counternarcotics efforts, U.S. vital national interests 
                require that U.S. assistance to Guatemala continue. 
                Social and political problems underlying the country's 
                36-year civil conflict remain, and many Peace Accord 
                commitments have not been met. There is a need for 
                continued assistance to programs that diversify the 
                rural economy, increase access to education and medical 
                services, strengthen judicial and human rights 
                institutions, foster the development of civil society, 
                and address environmental concerns. These programs 
                create an environment conducive to building democracy 
                and reducing illegal migration. They also address 
                social injustice, poverty, and distrust of civil 
                authority in Guatemala, which are contributing factors 
                behind Guatemalan involvement in the drug trade. The 
                upcoming Central American Free Trade Agreement 
                negotiations will also require significant U.S. 
                involvement and assistance in projects linked to 
                further economic liberalization. Additionally, 
                suspension of assistance to Guatemala would result in 
                the further deterioration of Guatemalan institutions 
                essential to combating the ever-growing influence of 
                organized crime in Guatemala.

                Haiti

                Haiti failed demonstrably during the last 12 months to 
                make substantial efforts to adhere to its obligations 
                under international counternarcotics agreements and 
                take the counternarcotics measures set forth in section 
                489(a)(1) of the Foreign Assistance Act of 1961, as 
                amended. Haiti remains a significant transshipment 
                point for drugs, primarily cocaine, moving through the 
                Caribbean from South America to the United States. 
                However, the vital national interests of the United 
                States require the United States to continue to provide 
                assistance to Haiti under the Foreign Operations, 
                Export, Financing, and Related Programs Act, 2002 (P.L. 
                107-115) Haiti's overall counterdrug commitment has 
                remained weak, in part due to political instability and 
                low levels of assistance. Such instability, coupled 
                with economic degradation, has led to an increase in 
                criminal and political violence and compromised

[[Page 5791]]

                internal security. Corruption is rife; including 
                reported police involvement in kidnapping-for-ransom, 
                car theft, and coercion of junior police officers 
                either to assist in or to ignore drug trafficking 
                activities. President Aristide has attempted to shore 
                up his personal and political security by politicizing 
                the Haitian National Police (HNP). This, in 
                contravention to one of President Aristide's 
                commitments to the United States Government, bodes ill 
                for an effective counternarcotics effort.

                With two exceptions (putting into force a 1997 U.S.-
                Haiti bilateral maritime counternarcotics interdiction 
                agreement and establishing a Financial Intelligence 
                Unit), the Government of Haiti (GOH) has taken no 
                action on its own initiative in the past year either to 
                cooperate with the United States to interdict the flow 
                of drugs destined for the United States or to honor its 
                commitments as a party to the 1988 U.N. Drug 
                Convention.

                Other than signing a bilateral counternarcotics Letter 
                of Agreement, permitting the polygraph examination of 
                40 HNP anti-drug unit officers, and removing those with 
                questionable results, Haiti failed to take significant 
                counterdrug actions requested by the United States 
                Government. In summary, the GOH did not:

                    1) Deposit an instrument of ratification of the OAS 
                Inter-American Convention Against Corruption;
                    2) introduce anti-corruption legislation;
                    3) prosecute drug-related public (including police) 
                corruption;
                    4) implement fully the anti-money laundering law 
                passed in January 2001;
                    5) enforce existing anti-money laundering 
                guidelines issued by the Central Bank;
                    6) require cross-border currency declarations and 
                provide penalties for noncompliance;
                    7) increase the number of arrests of major 
                traffickers;
                    8) establish a permanent BLTS (French acronym for 
                the HNP anti-drug unit) office outside Port-au-Prince; 
                or
                    9) provide training to judges, prosecutors, and law 
                enforcement officials.

                Despite Haiti's demonstrable failure on 
                counternarcotics issues, U.S. vital national interests 
                require that U.S. assistance to Haiti continue. Haiti 
                is the hemisphere's poorest country. There is a 
                continued need for assistance to programs that increase 
                access to education, combat environmental degradation, 
                fight the spread of HIV/AIDS, and foster the creation 
                of legitimate business and employment opportunities. 
                These programs can create an atmosphere conducive to 
                building democracy and reducing illegal migration. They 
                will also address root causes of poverty and 
                hopelessness in Haiti, contributing factors behind 
                Haitian involvement in the international drug trade. 
                Suspension of assistance to Haiti would result in the 
                further deterioration of Haitian institutions. 
                Additionally, suspension would hamper U.S. efforts to 
                ensure implementation of OAS Resolution 822, which 
                commits Haiti to hold legislative elections in 2003.

[FR Doc. 03-2960
Filed 2-4-03; 8:45 am]
Billing code 4710-10-M