IMPLICATIONS FOR THE UNITED STATES OF THE COLOMBIAN DRUG TRADE

Created: 6/28/1983

OCR scan of the original document, errors are possible

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implications for the united states of the colombian drug trade

volumeestimate

: ISnlWpmcmtWnsI ifib Emma

THIS ESTIMATE IS ISSUED BY THE DIRECTOR OF CENTRAL INTELLIGENCE.

THE NATIONAL FOREIGN INTELLIGENCE: BOARD CONCURS. EXCEPT AS NOTED IN THE TEXT.

Itm foaowingoraonizahofil partk>potmd in lh* praparction ol rh* FihmeW;

Agency, iheot ity

Agency ono* toeeffioerK* c< If* Otportiiieeh 8* SWt

rSt

AUO "Vl .

Ih* Kuiitsml Stall Ine&artment of m* Army Ik* DhmIm> Milgnct,l the Navy

Auinov CM oll* fort*

(feeder ololo. Corpi

srtlti in tit DrugAdmiieirotteB, Oeparlmnl alend to tbe

UnircdKxm Swnce. Depo-tireM ol Ihe Trooney, elto ecMrWeda>ai (nlvaee.

CONTENTS

score

KET

A Ue* Hitfnrv ol Smouung and

Beeenl Trends inmperii, sod Eipert. of Diidi

theTnA

J

Eeotomie Imped, of tht Ntiecbcs Trade

Thr Spillover bio

Trtffiekers tr4 ire

Oullook snd Implie.tuo.br Ihe Uniled

[rnpHimee-iHoOoirUliMtheTrsde

Medium-Term

It* ihe Looirr

ANNEX A. Pioriuuua. TrillPrices, and

ANNEX B- TJie Drue Trad* and OokxnUs';

ioeraphlc

scope note

This Special National Intelligence Estimate assesses the economic and political impact of the drug trade on Colombia and examines Impediments and potential inducements that will affect ihe Colombian Government'! willingness to take mote effective measures to suppress it The outlook and Implications of this trade for the United Slates are also analyzed.

The data on quantitiesrugs produced or trafficked in Colombia are particularly soft; all ligures used in this Estimate should be treated as rough approximations at best. But this softness does notthe basic analysis and conclusions of the Estimate

KEY JUDGMENTS

We judge lhat the far ion impeding more forceful and effective efforts against the narcotics Irade In Colombiacontinue lo outweigh those favoring such measures, at least for the next several years Colombia will nevertheless continue to cooperate with the United Slates In suppressing the traffic at about the same level of effort it now exec's. We doubt that President Be Ian cur will agreearge and sustained program to eradicate the drug crops through aeriil spraying

Colombia now supplies one-half to three-fourths of the marijuana, about three-fourths of the cocaine, and misch of the methaoualone smuggled into the United States each year. This trade generates enormous profits for everyone involved, but particularly for the major exporting and importing organizations that assume the greatest risks.

Perhaps the most basic impediment to more forceful action is that Colombians remain apathetic about narcotics suppression and see itroblem for the United States but not for themselves. The need to control narcotics thus ranks low on their list of priorities, well behind coping svith the worsening economic and internal security problem!

In addition, this Dade constitutes Colombia's second-largest source of foreign exchange (after coffee) and finances at least several hundred million dollars' worth of illicit imports, ranging from clgaiettei to Mercedes Benies Profits from the trade also increase the size of theeconomy lhat Is beyond government controls. On balance, itet economic plus for the country, and this probably contributes to Colombian reluctance lo take more vigorous action.

With the tremendous re&ouron at their disposal, the traffickers can buy influence at one level or another in almost any Colombian ministry or agency. This, plus their ability tothose who refuse to cooperate, has seriously corrupted the customs service, tbe ant (narcotics police, and the judiciary. The influence of drug money is probably much greater at Ihe lower levels of gosemment. although welear appreciation of how high il may reach. But, thus far, the traffickers have made few efforts to influence or control political events on the national level, at least partly because they have procured adequate freedom for iheir operations at trie local level.

Their ire. nevertheless, some (mors that could in the longer run induce tsraeota to tibe stronger antlntrccrt.es measures the growing number of narcotics abusers and addicts tn Colombia, which may increase local concern about the trade, the possibility that tht tradition al elites wdl come to fear and resent the power of the trafficking famines: and thr possibility that the involvement of local guerrilla groups In narcotics trafficking for arms will raise the threat ihey pose to the Colombian Covrrnment's control of the country

Cuba hai long wpported insurgentn Colombia In at least one case (the Gullet Lara aftair* Cuban officials used Cosombian drugs anrtnetto oroide arms to theroup While thereumber of other reports indicating Cuban com pad l> in smuggling drugs from Columbia and elsewhere,o not know the full extent nf wch Cuban activity. The efficient trafficking networks, however, offer great potential for moving arms as well as drugs whenever Cuba chooses to use them

Given the sire of the polenlial growing areas -nd ihe profthe tradr. we tec no chance thattrafficking of

narcotKt ia UJorabu could be tupprrwd -and keptwithout massive sprayingloody,nd prcJonged coercive effort We nidgeota will remain unwilling to accept this cnsl. Even If Colombian drugs were cut out ol the internationaltiade. these sameand ease ofwork to indu"flows from neighboring states

AliKrnifti eradication Or sobfaallal reduction of marijuana and cocah tswrtHtl tn- .iiKtvattaev of UW Cnlnaaha-

an drug problem, narcoticstrategies in the short run are likely to he more effective in areas where the t'nited States eserts more control or can apply pressure more directly.

DISCUSSION

land Norfolk*

hewingi tmuaadinaend. foe ihe moat pat. huocaable hittorv ji Colombia and neiehtmrlna itateal ai early a> WOO BC. and coca played an Important xlunoui role autona Ihe Incai By thel the tpaMihhoca car had apeead Irom Arpralina lo ihe Caribbean Ulanot an indMuion iA the vatf tance nl tha touch and adaptahta plait A* for woucchmmiuedrade pnlicirt enmericantrataaband baa (lowed Mb wan tetcea Calamlatt beadart Nbhct* are deeply affected by thai Baaatiaa ol dadytaf. trade cmtrob Ai JIkj drum heeana an moraus* part rl tha crnoaband. iSey were aareovad ai imply Wn-Irve adjunct! lo lha nld le.'i-e

2 Coaunmia'i tprrtaeulai rUt over lieannaana aniralinai inlv the

United Sum waiaidadmaiur taclori

Cacanaphy Colombia lie* btiwwn the team cocaBolivia and Peru! and the tea mule* ihoniab Iheit hat lone and little patrolled Atlantic aad Parilheaed mauaueucaaicaM mnn auaacroua lutcoa-irolled pn.ai. landing nnpa. and ad of pthsSs ty owned unaII pur**

anar. anraWalkalen. andColombian, are aad Intar Southcriminal world Ca&antua

paclmctett and ceu.-aeHei'en area War.

uaeViiaudana ol ihrol bu>J-etrd bv Americana andvaa|iM ol Ceio>nfwan> inilednurabra ol whoa haie family and/or criminal laaa with unuggkti in Culowfc*i

Cilonibul well nlahluhedeoiald readily Mpand thru tuning tyilam in Include diue trali'iel ina Br the lata 'Bnflt. Colomblantimpuilira. cx'a bate andcni Bolivia and Peru, cnnvcnlca: il to cocaine tiydtochlntlaV, and npoitirg it to Ihe tnHed Stale* aad vlaawharr by ihe tune route* IW had etlabluWd la other eerarebend

3 Colombian* moved tapidlv into mariluana pee-doctton. rathe* than mil imitalaa and Irarupcatiiti ol Illicithen ihey tool ad'iniag* al ihe paraquatamoral US litre* at Meivco beganparaquat on lit maiiiuana liahk Colombia beean lo trow Wicrcaalag Quaatittft ol naariiuana In lhan IhtCsilranhaaa trallicieo began lo promote ihe cukintwn of oaea in Colombia for prrceuma ceeaiaa (Foi naimaled trrnda in pro-eVattaa aad eaporta of ihear diue> over the pa* decade. tre uwa A)

Trenchehxiic- Import, ord Eaperh olt

* CeJeanhaa now ibppliea one-haJ* to ihree-lourtla ofiiii. about three limit hi rl Ihe cocaine.

and much ol the mrlheiiuafenrInto ihe

L'rultd Slalea (Seao, paajrf abo rjowtamount of opium pupvv but. tn Itr aa nedonm- in ihe hemlit nnlr villi iheAlihough |wo tarn pieonitacnlly been completed,(jlomhun drcj-uowma

treat hai evrt htra mad* rlaaana, atbatattt of IB-el nairutm produeoni aie eJ iiecewiti aV

ri frotai that* mien recurU tl reaeevaiawa and eirrir-nl.-ei

r^Mnuiea [For ckeuua on oaelkdoloanr. eOcuird pro-dtctioe, and eaporu wo

t Maruuana latnew tl tfcraartawntt oi CfJoenena Itaw (laueeut teodurtaai for raport it careered in the poor andacethcrn pari of lha countiyrobably crenarei more0 -ti-iii. Irani lor ihlpmenl each year, of which0 inm patch US (horn, aernrdlihl to eatlmiM of lite Nalional Narcolfei Inlel-liaenc* Conaumevt' Cnniinlltra iNMf.CV AccadenU.

leuurei. and uilei In olhrirU ne Ihouthc lo

anoun> lor Ihr drllrreni*

SCCKT

coca leaf to coca paste lo coca base to cocaine hydrochloride

Ovrr the putyean, cocaine surpassed mari-Mama In terms of tipori valueolombiarew enough core to prodwv SS metric toes of ceeiine hydrochloride and produced at IraH an additionaloens from paste or base (mooned Irrtai Bolivia and Pars (Foi dciatb on the rnanof ictur-Insnnri AI Demotic prod'Ktim) is risingrapidly ai tralftcian establish Anting* In the virgin forests ol southeastern Cotornbta Their yield could ri- to peikapt IS tow bvhousands ol new fuMi have ban ohaentd Irom the aw. but no systematic survey has ret been made

otalfrom dometiic crow andbeae andlor the United States1 ii alienated by the US Embassy in Boeota ato SO ions of cocaine hydrochloride. This ain total US cocaine imports ai estimated b> the NVICChen the same commfnee ceeelurl-ed that Colombia lupplied al lout half of the cocaine entering the Uniledlearly one or anr of time ntlmatn L> off. becawie iheie ate no naiooa to think lhal Bolivian or Peruvian production has dropped in-iiadly0 Ihe Unwed States may be absorbing much more thanIntnl. or vatl Ionium may be soma to o'hee markets, or Ihe acreage an) peedwtW etflmates miv be !eo ht^i. (For further discussion, see ai.tsea A; Whateitr the ml tinmen of CcJooiblan cocaine eiports.lear that local cultivation is growing rapidly In new areas and lhal the regionhole will lave much mere cocaine available for eipoil over the neal few years (and more than the US market can absorb) as things to ettimiites ol ihe Drug fcrifortiment Adation (DRAX Colooabla eiponed aboutetric toot ofthe eouivalenl ofereerK of ihe eailmated US macket for this drug In illicit form. West Germany, Hiwgary. and China have since taken ticca to control balk exports ol* met fug ua lone. Colombian enf orceeieet ef lorti have tncrcssed, and the volume of iBlest Colombian eiports oi tins drug mav be drop ecus

The Mac Son io of tha Troon

, le* 'famines" apoeai to controltrade In Colombia; about the wne numberio dominate the manmana trade. In atcases, tbe same family now handle" bothof ihew ftmlllnara lbought toegunfashioned contraband expended intoUV aad added manwana hifamilies lilt 'nin two main"hose who mast no effort totuddan wraith, and who are based mainlyind the Cuura Peninsula, andluancsntao. who own legitimateand lave adoed drum lo their other caper!additional detail.see annea CJ

The main Iralticklng orgsntaalionf art large and "flea uphiaicaud. Some control the wholeIrom lUruvi labor to plant, eollivaie, and harvest Ihe crop, through gathering together ihloeeble loo. lo moving it by plant or ibip lo the United States tn tome eases ihey may ilso be the importers in Miami am) elsewhere in Ihe United States

Traditionally, cocaine trafficker! aiuM arrange to buy snd move mntb ol the paste and bate ihey need Irom Peru and Bolivia and process It Into cocaine in Cutnitihis (ibe labs are frrauentlyities where me aecesnry chemicali and chemists are more easily arranged for) Ai domestic production inrrrwn. (lie need to irauggi* pa'le or betelunbla will lessen, at in all probability will the sometimes blocdv comtMitiion bei-ree Cotoinbua and ether iiafltrtrn in Per* aad Bolivia Indeed, this competition a

scc#r

lo b* one reason behind lite eMeblohmeeil of coca pbMaMoBJ in Colombia o'er ike pad few vein, another bring the addilicnal profit gained bv cutting out tbe raiddleeaea

II Mm! of the minjuar* exported to the United State* it moved by ship, while mo* ol thehought to go bv Krptane. (Routes used by traffickersihown in figurehipped, often wMh ihee ctbetn beth Aim ind planet We kic.i- much lea about bo- ill tie* drop move to other importingul suspect ibe pattern Is timtbr

v. do end Mo-hups

13enormous. Id 1WWmple, anion shtpraenl ofworth levo.0o0 If Ihe grower* brought moreof which closetufcon was clear profit-to Ihr importer in ihe United Scale* From the field to tbe it reeb In tbe United Stnta. nuniunnan rtl* fromer poundound, ai illustrated to table 1

Ilgtat .narkups ue later, by thejmI by tbe importeri into the United SUM* The* are ire Iwo rrofl complei phaeer ol ihe Mlficklmhew iheol failure. The lane organiiatsoru havesksharlnso-evai. lastot, -ay toward euauring their imvlvibiliiv. even in Ibe lite of high rata o. irileidietlon. Foe example. DEftclair, much evirfcuc.wterserd credit c- Alp on cor.iigna.eet to maw ind UUCed importingnd. at least laaoree ta.es. dependable importer, are not obliged to pay moreraction ol the value of tbe impmei*nterdicted or otherwise

Table I

Value of Marifuaaa From Crowei> lo US Retaileii

n

M

hklkn or'

ISIfc

Otnuiki

t-.1

loat to them The dowa payment or othereealy Quite large enough In ami inmate the eipofler fee hb oul-of-pocket eipenaea In Cotambea Impoiten ebo minimize rukariety ol tactic* One of the more common appears lo bep and man alternate cJIWtraj Mr* lor seaborne iWpaienti Forlo ride-batedton load of rnarbuaoa mlo South Carolina, theeed were datedecondary drop nir that war morebut lew convanieH, and the re* waa to be nnuggJed inio the primary tile. Tbe minimum success rate rot* oegaitliation waawulmt to accept wai thes

IS Wc krxi. lea about the rcic* chaincocaine, but the Importeri' profitbought to be at lent at high a) for martjiuna. The exporter make* lew net profit when he ha. to buy the paste orfrom Peru or Bolivia, and be incur, em. cipeme lo inutile il into Cblotnbu for proofing lota cocaine bvdioehlorkde, Nererthclea. according to tbe apot pnees occasionally reported,iven amount ol cocaine bate into cocaine hydrochloride approximately double the price, and virtually all of the cocaine eiportcd fromrocessed there Tbe relative coat* oi couriers,nd traw pt-urton are probably ro higher than for marijuana, and lor ihe maior Irgfflekiog organization* Inev iruy becoruirlertbly lea.

i praaablv even more pgofltabte

produclion and large markup

Economic Impact ol the Norcotkc Trode em CeJombia

IT On babnee. lbs dreg trade nowigneficant econonue plus foe Colombia. The annualof tonUaUnd exporu bai been wmewbeie0 million .id s3 billionthe put ilw rear* (Foe detaill on th* puce and volume auumptiom behind Hut eUimale vitd furtherof the economic impact of thu irade. tee annex BItabJv amounted to aboutillion0 and dropped in around II billion2 a. thel both mariwana and cocaine al ibe poirg cd eirsrt reportedly (ell over ihew Bv way nf comunriwn. total .ooorded cijotl fellillion Ore* Ihc ume periodiugt curoiituied abouiitth ol toul Colomhlan ei-

poet*Not alt of Ibe revenue* from eoniia-band remain in or return toColombis: and iflicii drugs do rot account for all llie eonfrabird.rug earnings, however rirlmatnl constitute CoW bias second most importani source ol foreignand dlicitconsumer gocdi-linanced bv drug eiDOri.ear [recorded or legal imports have been on the order of DMear)

pproalmaiely one-third of drug earnings are mooetUcd and thu* increase Colombia*hange holdings Such carmngs are converted lo peso, mainly ihrough the (ouiiscn andccount and through overin.otclng of cgpceis. The services4 probably the principal mcau. of laundering .fetal foreign currency eurnme* Estimates ol ibe proportion

mntl

iutwruJttUU*Uiwbi" mwjl.wi.iwfflrti.

nr reported tnllosv* from touriim and service*a reality, lauodeied money range bet-awnnd SO percent ol ihe total. Similarly, aboutercent ol the leeorded noncoffee etports are thought to be fane and thus serve Io launder illegal funds.

rag production emptor* an)ost ol whom are basically suUbleooc farn.ro and ca*ual laborers Thi. is equivalent to aboutpercent of the agricultural labor fore* and has hadr no effect on food production, because almost all nuriiuan* ii grown on marginal land little lotted lo othernd most of tbe coca isery thiol, populated areas on virgin land These crops do. bo-ever. provide far belter return* thanter tali ve rmptovmrnl for their cuhlvalon andap-ard pressure on rural wages. Marisuaru fanners' family incomes, for rumple, probably averageear or aboutimes the national per capita income (See

Flt-re

Colombia: Income per Hectare* by lis port0

hus. monetized foreign eicbange earnings, employment lor somend ihe financing af UinificjntImport* conniiutr lb*contributions that drug revenue* mala lo ihc CoJomdipciiromi. The negative rflnli of ihls money are equally difficult lo quantify bul include at leail thean addHional inflationaryow* iu pool of illetal assets heldome and abroad that eooM be- uied to "take cer" much olmall and fragile icduslry and financial Inttitutnot. and additional corruption that can and doeiboth economic and political deeuionmaking.

onetized drug earning]trong rt-pauinruiv pressure on the basic money supply60 Official stailHIci indicate,r. lhatIn money mpply have not had moeh thorl-trrm impact on overall ratt of inllatmi. which it more attributable to the growing fiscalto* peel it tons, aod. perhaps most important.the pour no (ot ma nee of the agrlcultoral we thai contributed to clung land cuttv Drug money mnvhad ill moil significant imparl on the cost of luiury housing and other uneniiiei in llie main drug-trafficking cities, principally ttirnnqujlhi and Medellin

hereool of "blacfc dullars" in Colombia thai circulate in Ihr underground economy,irobably larger pool ol Cclombiano-ned 'aarco-dollars" lac-Id abroad Scune-berc between ane-fourlh anJ oitrhJf of the whir oft.mi, thvuflii lo go inlo ihete pooh each year. The domestic Marl dollar! -ere rstinuied to total bel-een MO millionillion9 Dollars held abroad may Icul several Ulliuiti. bulo wayrefining this estimate Taken together. Ihrse narcudoQao ico'd surpass Cottenbta's total official foreignrrser.es

iX Strxr Colombia 'i flnaneralhinlyIiltlr rrgulalrd. and already prcaic to irregular-illei. fliiw obtrtws >ec wmiderable danger lhat the linitx-ia! and induilria' sector* could raUlt be taken over or disrupted by rebnveis small amounts olrug intinrr- Thr government of Colombia hit brrn making rilul* innii-nairagel'ir fluv. nf assets bark to Colombiaaihal (iaii-ii iv dnlaialHin rf hidden aunt both imide and outsidc-

Ihe country The betsrlila ol such an infhji of ear lunds ire currently deemed tothe danger* I

(xilr.nibia'i view.

into Politic!

Conaprton

Officialndemic lo the Colombian system and long antedates the advent ol the drug IrndV The corrupting influence of narcoticsillerenl however, at least in magnitude. With ihe tremendous resources at their disposal, drugkeis are capable o( buying influence, it one level or another, in almost any governmenl ministry or agency.specially lodges, -ho have reiected bribesto haw been murdered Alone newipapti-man uadS official. "Cotombian hit men areefficient, and iheliow."

Corruption and imimadation bite particularly affected Customs, the Office ol Ihe Attornev Cencral {which controls the indicia! police anitnarcotlcthc ludiciary. and tbe nairirol policepersonnel rarely arrest growl oevery liw maior or "cbss one" trafficker* have been contused, important; deport boru and drugs seized ai evidence are olien misplaced or lost DEA offieert have neicithe clot ruction al seized tocame after it owed through ihe judicial process Mukh ce mciit nf uiih mate-rial must he presumod lo find lie

tlBf^ tll*F^ rt^eP ^BflnsT^rJ

he influence of ding money it probably muchit theand middle levels of thesenrgameations. where pat is meager and crcxlmi-ly la traiftrkcri is greater.ot lo say that such curruplidn does not reach llir higher le>rli srf govrcv meet,early bat in some Bolivianutlear appreciation of how pervasive drug corruption Is at these levels

Potticol htfiience

27 While several known trail liken (from Ihedrug families) -ere elected to Contrcs* ia Marchare unable to asiess the Imp-cl of drug

Mm

ES Thrnfiume*meife VxaJeu Important maior

rvj"hdeauimanuArUw.fi hW

f ,order fee, amor (ltvmffirhm,tun

-=2

theop,heof OgVabiaaoopenalll the

group, whichtufaucMly

rd b,l ol lta,W .uWy

t- beocc*

which it perorimto cod ihcse

I* both dnag*mdles do notbe mtereeted in obtainingoKiccpnrfrrriai iw.Itar tnfhaenee

onor been*,Ihe lndeilon.1wrtt-placed bribe So fat.ethe, mom ammtto control or .nf>aeoe. ttobactl rventt on thr aabW Irnit Ttar

Infhaencr toIreedoan for theirr. -obe-nnJ n* Ihr InceJ irvrf

Bng wealth ind tophiillewion of tone tiafficllni ianuHrv panicuUrl, those mcocaine ma.

aanor.VroJ

theirthe tradrlicnnlfct*Ih*Hshnuml "Umilve. ai.iWrkg be*school.

*-dpafrons ofe.ou On lha north cceui. tome lMVr built and dottedaaheirtb and von. fartd. ToIlk ^icni rbr, gau, more WM|hey may al*.iherow group that hu lradn.on.il,edh trend, -e. cioarh, headnsur, *ndproUbfy being restated bv the raabiofamcni whichilai not fell ihrmtrned b, lh-, 1^ H. iptar

i- -ci" andlo aaagtjafjiaftg

m Mm dernorrae. poincU process

Ko ih* out kvciiI nun. thereeen

remit and rumen af ronihncioM beti-ee a >

mneedhe MAS

cronym for Drain tohich,med Bee

bond,e laeWd

member, caf .rulrhy lr.lfi.ling families lorh* Colombian Attorney Generalcg of S3 mtAtty eon.locaVed .gfa ih*ea-uch nubbrli. repertixlly rn.aend the milKerr. We do net (now .hrthre iKr- connectinn. air baaed ob . err arenafna.

the drnre ol thosef.clved to ilie

h" Both

bei-cm the gggggn aid nv batfhtfM would aerve lo Mhlbi; eflnn. lo mWe the rolerag traffickingnsjiia.

Cauitoohfor m* UniMd SraW

ConvoW,Tr.g.

*asfel.nce

ol the wflatie,.

0 theU-frnae wMhlrr. mill

t.ry unit, (mm ihr rffoee lo interdict drug innvem. nl.

bg onr..

Maggoveanmrnr.hen formal USbegan,-llhtb,intoJ.ratadedand monry for thr National|gW. Beh-d

ta .eyfe-rrat, opaakm as 'o the narc tua,,, ,he 1llde Cotombun

initudnave changedespite US efforts io Dobllciu Ihe damage drags da Coioratmm Mill seeS problem. arguing ihii US demand lor nairotics creeled the drut indoilry The quetilon of illicit Colombian oarcobei hat nottloi political issue This,erious impediment the US coal of getting Colombia lo attack the trade more actively.

rom it flows tbe second nuuor anpediraent. ratcetics controlocus ol altenhco for theranks well below tbe eeonomic prH-em,security (including ecaamon crime) and pacification of the-international alfalri and inptcnsenlalicts of Be tan-cui') policies of Improving the lea of lha urban and rural poorgibftcaui reduction of the narcotics trade could work again* one or mote of these higher priorities.

he Colombian economy, for eiamplc. is cur-lenlly in wets* shape than II hat bean fee years,il, foreign exchange holdings arc down. Interest rates and inflation are high, and the budget is lis deep delicti by Colombian standards. Domestic production of food and many ewisumer goods is eouly and inefficient, while demand for ItadHianal legalsugar, andsluar.oh Am naior cut in drug eipoiis would unnen Ihe foreignproblem, reduce the availability of importedtcak unemploy menl in those areas where drugs are gnmii Moicover. reduction of Ibe trade would be fiprnilie in terras of men andobservers haw; estimated that an cllectlve etlorl woulti coat at leastimes "hat Cnbsnsbia now apends ce narcotics reduction

serious suppression effort wOuM email other politicalbias! some setback to Bel incurs post of improving ihe lot of ibe poor (through the economict least some increase in the alreadyromical levels of common crime and violence as some of the newly unemployed flocked to the cstse* in search'telihond or ininrd ihe insurgent! In protest, andprobably not boost u> these

he rlleel of the nareolles trade on these guerrillaow miied The largest. FARC, is actively eratagid In ihe drug business.provides for iccen lo money, arms, and

. leaps

from diuas also serve lo "corrupt" trust tone of IB memberi and reduce Iheir revolutionary motivation and the cohesion of lie orgatiiatson.umber ofy officers have told US officials thai Ihey view FAKC'lwith drugs at particular ly dci'abiliang to that guerrilla orssanitalion and effort. Huna ins the mow poerful

nother, and very significant, impedeneirt lo tn effective effort io suppress ihe narcotics trade is the fact thai Colombiar. bw enforcement fores are stretched eiircmdy thin, Ihe Navy and Coast Cuard are Ice small to patrol ihe coasts against contrahand; the Army and National Pohce wrili do not really rub in the eastern half of the country, which is lamely beyofd government conirol and where the FARC and coca growers operate with relative imoonilv- aed tha police warn alrwu hetplev againa common crime and violence despite ihe fact lhal thtv iinpi-ue on almost every rttiien. Between rural bandits, urban (boss, atd terioea groups. Cceonvhia is now probably the most violent soclrlv on ihe continenthis yeenu lo indlctle. Colouhis laeki Ihe means ond/oi Ibe will to suppreu commonis seenevere problrm by iheit is dlfl'cuk tc are where the will and/or the resources lo suispreu tSe

4

trade which it rol teen bv (be public loem-uicome finm

cnal tpraytrg ul dim ciopa with

in lor Irs maupnart and rnjulprncnl lhan

wouldoda-alion (the only method carreollv in use Wt Colombia) lea Ihe lame nauHt And tha Urated Siilei ayrgug Coloobca la ipeai Ihe anaruuaa* fiatdl with niraoaat An eradxu-licaIihium H> lhal ta Meiioa hW eoi CJ'rd givwmg inneach country art rough)*nukebag dec* la rate eeacaaalesao loaiuuana 'etching ihe US market,f it batedumber of growingTha

wggeitim hai ivealdtiihle

Colombia Co'canbian pubhc health lutnoritim argue thaifangmiaii and aid whr they thvuld fipoie their propat and landi lo ihii herbicide whenUniled Slain Jnei nol ipcay II on lit own matliui na field* Airborneoca plinli abo remain* Dtt*Jeirialical. hut the at-vernmenl CunerUly leemi more iniernlod In waving coo* lhan marlyua-

inal mid impediment Ui aa efleclive nar cnllri wppreulon elloel In CotwitUa ii ihe wine amy of eouran meauim ilia gtowen and tnlfickeiible to them A* Bhawn bv npcienrahe'nd Suolbweal Aala and tacaicoa

arela ituTt thru graalog area: and.-if ru in 'inajnenl triorce*

gtral peetKirnetenxilU ir. table aa aeartieiceai ef CtJmfay (aad* Ike? arras aJetg ihe .Mr no and Caeca Hi-en araJ ia ihr hash Andn i'r unmiled in 'he hwh"growen can reduce the ant of indntdual aloti. move theni lodifficult tcnain. and "amtuflage Ihr noptcr[Mining It aimloud (tot-heutlet me aainn aie tltn open In marijuana grower*

UMef carina &iriitivhii nukluoionIhi Win irtnnu Di luahli IS miioi.id the tvaienlVWMleeiJPtol lie ilea ttui eauU tuievl llat al tial Iv^tMrdl

i muU Ai Ir imlO- taaluiru

Ai That Im. Cokaeibuo growen and trafftcirn have relied on began and threat! lo eiyarre rtJaDve freedom of artan But if wreak*beganbtte deesft aaat ttartr arof tla. they could tatea tnHani af the aatem hai of tkceeewble oaf* by babcvfarilane o* thalow draftll of which -on Id be at lent (Oinewhot uncepllMe to unaMarmi lite

taPU*f.ei.ii mentsfleclivo naicotin nipprnaion. ibercumber of laeHiri lhal cuuld afleet tie balance Innduce thai or ihetimri*uitiKB loore fecefulli agame the trade Far aar thatc ta, earavber of Caacanteaa aVogoagJnrhi ta ineeraaa ihralun of theat an>at rwae for Aeii inewty Seecad. if lha tnllicting faeiilinnadl iheir way intoduitry. and other Itadilional areai-iher innocal metiiwirend mltbl he enhanced by meriting embarravimeni me-

rpulaliniiilce imrce o! drug* or by further bank ca Imanrial irandak altiibutable loi-i' i All ofoieMlal developmr-nl*

lend to Increaie CnloenUiii imtVrnrcaiiing of the thai drug* poar la their rarti and featrt

liar trade

Siaadaib. aaoVatioai af rhnrr .eaf iwneunneciicni between ihr sarn' gurnllk gaoara andalio invoi-rd iradiiat naircNir* forwould induce the military lo pay moie attention to the narcotic*vei the manning ecmrrnic and crime taoblenu. I'raidenl hrlanciit mutt ounlin-ue lo pa* heed an othttoiernmenl and the mimaiy that tie mora lympalheticterestl and more eoaeeriad alu-ul Coonbii'in -lib Cuba.were wied liteadauuuii ime beeaane el Caba'ifor thetat we thui thai Meatmoral

ehcae before thvtr factoet whach eaggM wortfianae tn Cobmeaae irinptioa* el the

Cria I'/'unni problem rwahl geificarl

difference

sCtJFi

Id mm. -lodge that the (iilnmbun Govern aieMoei the out several veer* aill umimue lo make about samehat it ha> in the recent past to meetnternational treaty romnulmenii on nartot a* Otheratoaamy. crame. andcommmb to rani abovehehartarcfasPMmmmBelanew cone*thr narcotic* iradena) fhrr Eetorslt paak w* doaili llw Hue will attract much additional annul mnu tern in offxe

vSooh

ver Ihe neat levrn! vi.i. we raped ihe Colombian Govern men! to cvnlinuc ill present level of coooctuion with lhaotwl Guard and with the US urcotiia enforcement team In Bogota. We alto eapm Bogota to maintain ihepolice effort to

intndaJ ihipnwnl. and lu itWni pU.ilings aianua-'i (For detail oa HiHart* we ante* A) But

iWn* Here it Irrth: cbaece lhat tea't implerarMerial wnaa papaM or make other

niic efctran tn impnve the intina'eoiici program

Ikm Colombia will remain thr JrvnlnaDt nuicfnd probably thr - supplier of mariuina lo ihe UnitedIndeed,ports will probaMv IttrtMtt-

In*

ver ihr iocovr run we (Sink lhat drugColoocia wdl (row and thai (Im. in turn, wd; lead le vie*rjJrm.aacaar theodd. ale atntf lltv (dtr that the CorWweawdlearneconceined about thr luurs bei-emaavdthr arm in ihr Kanda of nor or mote of thetroop,hetr larrcetilkm change. Cnhi-nlnihe eipectrd lo adopt mure elUntivr antinarcotio Polincluding aerial apraving and rr effom lon

*T. Bul wo we no chance that the ajowlml and

Iraffi. ol narcotlci In Colombia cm Id he lup-

preued and kept thativen the abaericT of attractive alternative erupt, the war and iactoaibi!:t> of nV aaeenr grewmgand. above al Inr peafli-abdtr* ef ihrloody eipr-iivr and ptclcngrd eoenclie rllon And we ktdajr ua* Boctanttttaan ttnwdhng re aeon* that coat

aen if Cabmhaan draap -ere rat cast ol thewrMxi Hade ihear aaaneprofit' and rate ofwank lobuitBte (low from otaweiaril Vm-iurk. Peru. Boh.it ,nd Cinil AaureKa

li uhnaulial ieduction of

nuriruaaa and corn prnductlon it raarnllal in any Vsng-tern, rrtoratlon of ihr Taiaeenhlan drugot let control tlrtteglet In the ahnil leem are likely lo be more rffettivr In airai wliere llir United State* eaerll more eoMrol or can apply premier moreftiaki fur trafficked. In riampV can he mcreued hy tteppang upaf lord on the high teal, in Ihe air. and al Ihe noinl of enirv inlo the Untiedntelhgrare Commimily tncmbeit rHlanatr thai let* lhan fl> oercenl of it* marl*aana and cow en mule in Ihe United Statet l> cunenlly trued or otherwise

IMndictrd Idrellfynig and impounding the aucb ol

ialiichingalan uwmartredwrev ihrfioatt Ha* Iradr Swllarr-bnd hit recentagrrrdbitagareesof it*aectect rnglaMocdet I* (muriatedeoCafiuag

waji Olwn JfJnre 'at hairni ilor Laulft watfc aa Panarua aiad Uwardt have the* far been rrtuataM to lo thebrcrM. rrpuw thai traf-ficim are beiorwg rono-nwdtfoetl to llnd and eur drug piolilt aonv* CcaWmbianeriih lo be taking moir paint tnmovr mine of then nieti to olfthare haiena. pailirultih'Htf lhallfort it having an impart

annex a

production, trafficking, prices, and interdiction

Whale limned miveyi' of ihe areai panled lo

Illicit narcotici crops In Colombia and inoring countries have born made, ntimatrt of yield lor marijuana and cocaine and of conversion facton foivariant Heal In prorctttng coca leaf to cocaine Bydrocluondr mwf widely Tbei* arr levenl varieties of can olani. gggfc thought to haveyield* under aamilajnd ri'M ia aim thoucht to vary coratsdciebia depc.id.na on the age of the plant,altitude, type of aod. and SI, oe rainfall

E EMamaM el pmlaM and esports ce* these drugs areotw and ctroendon police and nfurman" report* :bal deai wiih particular areai. inctdrmi. or eirjui and ii* cbtri-atumi of Finhauv pr-sonnel whoraveled is orc al Irait parts of the area* trfiere we believe ihe dnui crnpa art concent rated Srnurei and eradicataoii fi|urn air haieil entlreiv an statiitlci lubmltlrd by the Ccdnmlvin agentle) iniotvrd in narcolica eoHrel and ahlinal certainly contain tome

doulalc tOdMlng and.

S KaaaakV. am raahaaae ol draan rearaV

he United State* areestimates olvaikble lor eaporl. mm an steamed tare-centaae lorraatstt err-dent and aaleir nancaaramct To anmrbev are abo chrchrd agaaiastaaev setwatetvol how much of this drugirmuroed in the Cm ted Slues, leta eV una ted imports frccn other counlrie*

* With all thete caveati. thenndiVale Ihe tarojeof enimaled production andeapnrUthe pari tevrial yean The various differing eilimatra are not mated that It they come from dilfetenl sources, andwriltinto (be raaciarage etlimalri or vice versa

Ria lawanw nailnn

itu-ein ITS! snihrll"nured umpWn

Table i

Eitianatcarij-aaca lleetarage and Production in Colombia and Eiporti tonitedei

fear

lha Uarted Juaei

?

.

Table 3

lalei

1

i8j*

It

iv-c)

0

1 of CocafWuctton in Cocaine Equrealeoti aa Colombia and Total Eiporls From la to ihe United Stales'

allium niiulli poor and undricloprd im1 of thr GitH of I'rahalor nvw ol Ihr inl ol Ihr

rtinl Hip area -bach prohibitntarn

OOm.

ft Oi. Ihr Bow. ri find riramayean andhetnfoecenaciaT Adnaeairaiirei

nlifflaln lhal ihr avr'aar yietd prr acre

on aitarnina. lao harvest! ytncrmotiof ihiiprodm-ei twoear. Colcrnhrior! hirt.il0eat

n iiititlirc lubnullrd bi

ii|in inrived in lOllumNiliInUlid lie linereratav null.'^ and at

ell il irliicra 'I baila toll being prepared Im .lap.

rncm If lancet unool be iitdrpredrnilt lenfied arid k'mlil imoltr tome dourJrm. tome jinnunU nnl demoted tflei tenure nhlrh lind iheir Wll back into circulation, aril tome element of rut* WiilnitinvadedInihii anlinar-coicioteitv't rnd'c nnUvmote nl am iJml

ratraacdaaa'i atW-erarreorru*rt

tlarvh laetaan

l Theree. rrportihat dulled to ihrthr Culf ii Uiaha and thai InctejMi.ii amm-at irehipnvd (dim Ihr Pacific coast.haw vaneillinrr and paiivtt aicen tn on* tiem ihr Onitmu-nily .Umilln thai llir laaruar ul rnaiimana lha'. Irainhra

II jtl'iitii mdrii. pnliatn0

ib, Ml

4 Mirrocraardpaaa by

beang eoenpretenlratei then nanr* In pactra* toarehoinea" ot thrdi healed in ih-ek iinei near twang ilrlpi or beaches ihrU of il nirnn b| anal tit imull ship through th* Caribbean lolhr all

und null Cwuli i1ilrd Sidle* Mint of

linn In smallo ihr nrnr iWirution Ihr

ilrr-ait) nf pfrrntP liiidirx ifript - v. ol the

athai rue

eh-l

MH Cnorn

iw lii rarli I i -

ue<j'i. th ni-ir rani luenlnnrd nilh

Tables

A Price Cbaii for Colombian MaiiHiane

11

I i<

.ISftitlarip-rosiiFd:

Cw-er

UdiUnuu.Bretir

O Income Stale men) of Colombian Marijuana Espoeier

IMO I

i|tv*n*

ale nienl o<

porter

lahulatumypical ZtMon shipment ol marijuana, using hii own ship,otel lohe maruuara. and trapping anorn lot aripntteringle transaction, ihe ri-pot tec. with ootlai'tXO coatd crassillion,et profit ol nearlyote vertically integrate') teganliuion would have substantially lotver ecrfit. Mure than likely, il would circumvent the broker and buy directly liom the giowcrt. ihereby cutting costi by pnuiblyInrobaW* would own the irantpoil xrhicln Tins total cost estimate, therefore, probablywont case' scenario lot the tupfJln. Moreover,ave caiuervat-vely Cfiimsted trtji tncnine. Fur largescale molher thip operatioiit. then, the tut-plier't limine to ct proseelieved lo be no leu. Eliminating Ihe lural bceket ard sellingighert'i perwould raite the ratfis

Lu Dialing the image cotli and paollls ol urgr US maniuara impiirtrri it difficult becaute of the peat variation tn method) andreported bynd other mlcemants Neveripulhrtiial baataae sheet0 ten ciar.iuanaeannrwrted below Alitough tbe imnortei mauulntentsa! ainocnl olnd ihr labor ol II attoiiatei.

llaaair-rrn^tUiawuiignet profit

of aee.it> Hand. ha* thru Coaanbtai. cowaterpam met acquired mora* nraety trtplr tkWar raprsttei TW coata aacwrnd for drstveey and dlrlruVrfion sorraaior* wnwid fbsetautr dr-perding on thapanenltas thr place and mode of debar**paclutr of Ikeioaoenlna al HO per pound would allow Ihe iminuter ro lower thr tost bv ante than II milliontuii. tho ratio of ummie to etpeeiei would In<rrate byhalf. and netbout M

M to au oovioli ionmind

fill -vJumdi In an aanialr InllnS

nil

Iron uW il II

Fx

ron lural broVri ir (IK pfi (

Pn.iit at null ardItan* mnll wiiaiulx niiuuiH

ViaanL.

R'ntalw'>..

t eluhll IIOU9 h

"ilpiai

Vrwe'

da* vwvatr

Total

Sri .

I. ..

a

r.

ain

" iwan ii nam

31

si

coca-grow irgjhr traffickingiur-m- new plantings in ihr. wwh-aMreneh

Thlimm rt tropical rain forest laced with tmoll an) medium size mm lhal Iced the mattr Overs flowing ir'o the Amazon and O'lrccn and serve at ihe main meant of Irantprtrl The lowlands arc thinly populaled. mainly hv Ind Urn whositlrtvcc farmen While ihe arealittle hai not been wrvryed lyyinnatically lor cot* pUnta Horn one wiveyOO-tqua re-kilometer ario alone-vo-edhlt in IWJ.rrUirt plusields recentlyl not ycl planted, lotaliraf aoeetaiea This small area alone is opevletl to produce the co-ilva lent oforn ofear In IvNS Tho-itandt of newly cleared and planted field) bateottedere In the ratteen balandt

CoraereroiMl biuh.mall lie* whose teovei can be pitied freuucrilly (the number of hai-vrsla per year se-emi to depend on vaiaMv. ted, and climate) and who* yield of leaves riles dransallcaHv *fh ace. as indtcaled in labor 5

ean

Ulika

Table 5

til

Ml Id-it

ol Cert lira

d'l M

oiaa *

jrin-.rPpei ttw* rWeri

OH

rt hr--ew.

tear

mini tl ffl* 4

he main variety of coca now under cultivation in ihrse lowlands does not require ihe elaborate tcedbeds and careful iransplaniliya thought to be required by the vsrwtlet grown in the traditional coca Producing arras of OJcenbia and in Pee. and Rcdivla.ew "mother" plant* can berelv pruned for raiting, thai are simply stuck in the ground to gtow

Moitufoclor-o" Process

IT. Cocaine is un. of ihe alkaloids in the leotes of the coca plant. Traditionalonly lhal Ihe leaves be picked and dried carefully, but Ihe eslractkiii of cocaineorerocess thai usually reniures Uvea* separate slew First ihe cocaae ts extracted front the leaf tooca pa-re. secondte is further refined toue, and finally the bete it convened to cocaine hydrochloride (CHCU

-Tbe "chemisuv" of the procea It KraisJirfor ward Ihe process ItscH docs not teejeiie ac-.es* lo "nolle" chemicals or euuipenctvl Production of coca utile it parlictilaily ample, and "liboea-tcnies" arc generally no moret larp stretchedt 'Trocess pQutpment" can3 taOn drum, plastic funnels, garden hew rt-an be located :r.mit* to coca fseaJs istid are. tar lieu-la tly in Colombia) and manned by unskilled laborers

Tbe teoond and ihitd lleps do irquire more care and are generally conducted In somewhat more el.bvr.k- facilllle, SlJl. the eompleWlv of ihe pnceo is minimal, though some nl ihe cbemi-call, paiih-ulan, ciher.ite md eaplosion liasard and tequiie some ore in handling

Theremint subtlHut* mules lo puriftcalion; altemi'iv? teciuenccs of tfept. thrmicah used, etc FOI Mtmple. lu-iotene is often turd in paste manufacture. Istit ether petroleum solvents aoulduallythe Llano* region nf Colombia, vatuh'ie it empknetl And wherentr i.t can beperceni with water and serve equally -ellclveal-

Finally, because of the tremendous variability in

facilities, sill! fcvrb. etc. preen-in, efficiencies

can and do vary widely Aicur*te laboratory diia generally da not eiitt. and where xY.es do thev represent only asample (torn which to gcneraliie

here ii consideiablr uncertainly Over IhcIt. how muck cocaequiredilogram ol CHCL. Discrepancies anions sources vary bv aotor Irrit important auanriiy. Moreover, Ihereunknown (and perhap) unkrowahle) knset dur lo pilferage, spoilage, etc.oehere live "reconeiliatloo of eatlmatei of coca production with estimates of cocaine Imported into the United Stain Priduclion estimates indicateetric torn of cocaine could enter ihe marknt whereas ihe Naremict inirlligenie Ettlmalerepared by the National NarcoticsConsumer! Committee. etliato AH ton* did enter the USdifference wc cannot uiiifH>nnly account for.

he final Wage of cocaine hydrochlorideinvolve*ilullag" the pure cocaine hyrlrorlilrnideariely nl adulterantsnrnuch at tactoie. drttrote. and rnannitol; or "actue cud" sacheniediine. procaiiir. and bdocaine

boutilmram* of elher i* irauired toilngiim ol ccva.ne hydrochloride DtAatedeview of elher import tialitlict. indiraleillion kiliigrami ufere import ed into Colombia1 Some unknownof lint elhei -tt Iranultiptuvl lo fUivia mid

Peru, while tome was probably stockpiled inAlia ihr ether bminew in Cefcmbi* was to lucrative (wiih profit* nfrrcenlhat many oewxoeners entered ihe market generating upward pressure on imports which may not gcouaiely reflect cuirenl demand by trafficstrr* Transhipment and cmrtupply notwiihtlandlng. however, toch ether iinport* strongly suggest that Colombian cocaine hy-drochk>ide production may be significantly higher lhan previously estimated

ost of the cocaine esported from Colombia is still made fiom paste and/or bate imported front Peru and Bolivia over four majorhe Pan-American highway from Peru through frtiadot. across the po-rout be den with Peru and Fcuadnride variety of vehirfes. bi mimE boal* from Ecuador lo Pacific ports in touthern Colombia, and via the many rivers thai connect lovthceacin Colombia with lit neighbor* The iaat tbree routes converge on tbe city of Pulo. where onward thiponenl by air and oirrhsnd toino laburatonet in PotMyen, Peretra. Call. Medel-liii and Ikuota is arranged Coca page and hi v- are alto Iknvn directly from Peru and Bolivia to the Amaaon city of Leticia for onward air ttiipmen let Call. Mrdeltln. or Bogota Commercial aircraft ire occasionally uwd tolls coca product* lo maiorcities Irom La Par. Bolivia; Lima. Peru, and Guayaquil and Ouito. truxlor

Priceo-iJt* Chc'i

rices Ice coca Inf. page, and bate appeal to haw droptiedbe put several tear* while prim for ctt-iin-at ihepotni ol irxpurt into ihe United Slatrs and oa Ihr ttreel" have remained unite atable A* in tbe similar case fee maiuuaiiihis may rellect the Colombianr over lha Irade The diop in coca pwtr and baw [inn-however, ha* been much grralee. and ihe mi- tunl the farmer foi leaves now appears to be only lt> to percent of what it was0 (See figurenw price iliifls appear to point lo over product ion lit tin-farmer. invuWi greater cuitlpr-IKionlr ami tiaur drains, and tbe developmentorking cartel or oligcciolt among ihe cocaine eiporters andirh gfttet to shift the profits to this Inter utgrptnenli may aim Sr having an effect

at!

he ical csptanatioii (ol these change* nt llir priti' chain, wr have no indication*im plantain m* are be in*thriei In tie ul ttiablr new coca-Browing area) in boii'la a* ui-ll at in OAiiidinl verms almost inr-gable llul riK'.iit* npott* from Colombia and Ihr rrgaonilrn ihr neat lew tran We expect jntt more ol it lo go to Wrslrrn Europe

Erooarolion ond Inter diction

IS eednrnl olficiallv accrdrd

l&ataoa CaaitoianJ WwUncn on

U 1WI r.ltirwt. with thr

orttinallt- and<+Ummm* Law I. ol 1Irr ismiI Mlitid h* anrrarsttatar ofiarchilln' Maul Irani

irat, .ill.wtedr--it ifnaaawlwan (atnavrm Thr Congressall tha* aiald aaiir lie "mlalaliilini taiid.d CoSumbianaf

i- drug iraf licking Durum IMI (he Colombian VipnTtir C'rtJllnnilitutional re-

forma* desatned. aii-ji'* nllinO am-

hr luoaei'ulanii of diui IrallM-hrrt, andrinnulnrMlicr

ond laool Pine***

2b. tItaiK inn "in law.iaVrtm thrrrbn<unn

P't^aF'^*'lf*H* flt1 v tfrtr*^aP** I

luiuVlt ilwn-ui ami lailii'all lip miilii nil iw"nnlinr ilinga

uai'iaiUiHicim TWuiadrqiaa-

11in tlmwrl lUjamarH awrl i'm*idman ihr Welti nal

i a

ap>nv-**

IT aWaranl Fa/ur TW Salmanl of Ii lihK'ial Pt4ae mbwnnl andr' Ibr

d ihr Atl-irari jul .unpum

J.II iib-ii ami wmnaiiltllulre -laiaiuwiaJ auruli will* llwI II--providing adrrnniyratiw- and IngiMic fcippnrl Thr

I nil is tiradquditrred inlli imlonalBuiiamiuiHa Call. Mrdrlhn. Pailn. andIhrit was ciratrd in(niliinned a* thrdtr ofa> lob* Ihr Allornri Cestrralilriiwiarnrrd thr pbratrd ripansaiinvrwI< cferoracand thr ireesst ntamj

lha? Cnlianbwhr Mcsttl (Wlorm ofhope far an r'pamfcd iolr int rnlorcrmrmAC and the ludirial Puliwto hr -at lean lempo'ariltthr rorhi In II* blld hiiluri. Ihr Anliuartvlics Inn of ihr fudiul Polite haiess- miccpwci-In nirtiiiiciualnnriiiteidlclion

tH ValaoaMl Pofiee Tlar nsoaian*r

ppmacb to ciauan-rmirpl-inwmtin

new aCanrtalt ISAM)IMannVStMWmJM

roah -aJr up olu..'. -

onetvjn urai ilrplorril inann* andtfM-

nun iritethavncr umt. *rrv(-ailh*rm ol Ihr new orKvnratiwi Tnr laatuiNl hate been encouraging Pnun IhriiHi lis'hr trafficking in-.n. theyi-'ui'it. actnrdint to ihnt irnnitt. i'iainrltrd in ncevlKl mmic (on* of luaiuuana and moreull ion duugr unit* of

ilm Tin- SWl"l halcam an iwhtiaaaBnnh

r DrpawlBarWaattcn and aw thr I

29 Cma*<awi. aoeia :

iir|Unird in I* inWraOt aadf rwlit Tlrw OilierrJlaxl

bul Ih*of-r*

midr during ruutmrTlieii ilrlurnnlhnn illj-lmint ihaird with IS funrfu The Inst,uid .ivlnih Ihr muth ccuil and ii 1

ANNEX B

THE DRUG TRADE AND COLOMBIA'S ECONOMY

on me AlhKtnd Icxd Eceafioeaie*

peofgarile cropatfaagtiin lunrcn -ho drfrt*rage ol

onN. cW lo IS ODDe

Few of iSrar (aimer* havehn Man nopi. ind

n-ut *ar rmrgirn) lind for la* inairuani via rat hence. mcK nrrunet arc of major impotitceam

addition, aa animated JOOO CLmblaru ate Ineolind in irini|iiilng. hauling, and guarding lha ciup Eilupolailng Irom ihenrocne andebiililmnl ihnwn in annri A. lhal

'. In-ir

andfficial* psccaU, totalnHaa each mi

mt'iiuara boors (raneHoa aawhrd rut in the prnperit*mnlaiiiiin

ntm inch al narranquilla. Baric Iralltfleri bail*

raprnii'r hnuan iod indulged ihemarlvc* in wher0 much ol Ihit vliibO iiiccoerltv hat rvaDoriiod ai Iml price* for rtdiijuam Inw fallen

alaata ttttViiUuo

will rlraitataalli mcre-aie the CnDnrtime ol ihe coca trade lo local trrtoe* of Cokaabia'i aranaea* by *ampa*gj gatBaaaa of arm 'io lhaan In adoation lo Oheae rncDra nana, there nlor -often tond le.'ioe the Iravei into eara

oattr rieanng th* landaborperalion

ind probablytend pat and ilaidy einptot -nvent inttufalat haii.all* iliih and burn wlwiitrntie igilcuhuce. Acccndirg luCiilimihian Covetrnmenl officii I.age taUiy for these hminlimrobata) (he biuetindividual* in (he >oci grua.ngabout %t0 per daood picter caa eim few? tjimn ihe aarvttard rural aaga Ihe tame ceTarial parii ihr naanbar efaafcied inatoa grawaag cocaht* Manatee neati near the awl men trui (here are tnrral ihnuand *rparatr lurtiii in in. Llano* that!lkrly employ al (east one worier per lield

Coca It alio groan in the traditional moviniautou*ofolombia, but we haee no betb Ice euinu'int Ihr eumhet of lab-am ti rmplnyi

S SamaWht. ant ate* eaanwn of tha coat* of bribe* rtiemati" eapUred la (aura* buratle. and rnmportatirrn ra* cocamc- In mtmieb ceal* aie higher lhan fm marUuana. because ihr> much mora 'tillable.

Impoct tn lha No'iono! fjeoncimy

hne are practically an firm data no thr tiar aad ttttpaci of drag earnings oa ihr aatiaaol eecooeai. partly becauK Inew tnniacucm are illegal tndia.galv hWden. and partly Intuit Colctnblaa tiade and other UilUIKt are, as indicated Ui ihr due till km uf pilcei and vohimet In annea A, both pure and -olumere very root* IhrrHoee. ihr >tlv*f CJcu-or><ian ding npoeti ie thr pan meral tear* ceaild have been at low0ear or a* high at t3 bdnoa. a: in labial.

doubt thil cither iV mail mora or mttdtrrum taturs hate Imn tptaoached Intyean lavaute tar lower inmate reporti lend tube itutlal-ed Kith the higher priceure plausible

tangrbeulimn per ira- i-

aaate* eaaar br OK and thr USt rV-gou lag the .ihe of Giaoaabaan drug nptas*0 atBVai

here ha*arled ilrcl.ue In lla- fob onto of ntaiiiugngontldeiible rive In domestic laoducilun nl coca, plus overproduction in Bi-liiu and Knu lime have leducrd the tarke of cocatnd that Ihr coat olnto

ilal> atbnrl

anunT il oainna mm lea name* are anmi Ur in' twl ilr anf-rfritilrilaanmeant ti'ler iahu>nuai leu. Ilnw -rearedni-cC at 'nilfi- oailnf ri

T.MrT

Cadoanbian Drag Kiporlt im IWcwat ttun

MCO

rniaaal If

at*'

n- mwm

tawnaai nwnaaltetnra a, .an ,

l 'ill..-

mlt-owi

Metru.ta.lii. VihallD-to

Columbia. In3 Ihr US tmbauv inettlmaicd ihe fob valvar ef Colombian diutai (lightly more (ham II hllllen loi IWII le-iutnleni loriceni olrow national product) Factoring In uihaeovrnliimated volume ci( maniuana tiputti and taking the midpounl ol the Imrtatiy't ei'imaiiotal

oi tlighl'y lewI bt'jion However, the rfiarp

drop tn marlr-ana piim uud Im theae etiimaiet ti biUQue lo Columbia Thrteumb" of leeeni irpurla olound It)

Keilrvlir

i Drew, ftvwawp

atmaea aorrttmaCeaaaafc atari May be conienad into paata, ant* b- ttaed to ttauaneeaatv iocwUu-hek market doIUr tcononti, or aaar netitu -wnaoV ol Coatovbta Drag ctporti arr not tha cady tower ol Matt dorian Oa Ihe baaaa of viiadW of ottwt eoanaband ripcrtinuayihaa ramiagt from illegall tradnwnale oeo)>abh>0 miln the caletatutoea lhat foflfiw thmtlote. w* au-me inai ri-ntnaliom traditional"etndtodum! aceounl lorercent olllegal eaaaSHow

rug etrnlrgi are tmiieitrd to pete* Intone-tiied> prlniipally ihrniagh >hr lournm and tervket account andi Invoking of eaporUi

Fahe eapuiltcfnetieit ettinurr lhatercent of leie.rledetporl

levrnum tlx nut irprnen' actual physical irana-aelaona and are tttad to Umuter illegal dollan

ira ihuenvoi lee eiporo

1 (II1 btgaatt) tugaen (hotn drug rarnaagt rraaM beMt Ihtt way

aad mncn The lowitm ted lerncet

i<(urfinf inier-rl rrreipfti it iheal meant nf alunderrg illegal foreign currency

rarmnp Localof ihe nioouiittm and tervicet inflow! lhat do not rror rami real Iranaacllont rongr fromoercent The Inibuat utrd ihe midpoint ol thb tango foe ui calciilattunt lorl ratimated that abnulmillion in diug eaimrgintonrliied hi tlut way

II. Ftnatnrfng fmto-'i Uru* dovlart aw uted to finance imperii an ihr loitering wayt

ing ef attnnmatr mtporti TVtaoe factltlilet the evatton ol aalrt taiet and

importartirnta-lr prevalent for

article* coaaicaled by kemet Srudiet have WaK-

eatrdl folomtan'tmnatati rnrrr undenr wared That cCald amturat for

0 mlillcn in drug mcies 'imported'Inway.

impnnt lb* mial imirntanl uaeg

doDart probably it to flittaku illtcil imrortt. niairJv vviauoiei gawda tuth at IcleiitiOD teU. teililet.hechiel nnlrt pointtfor conliaband are San Andrnt. th* free trade tone) of Herrantullla andnd the CuH of Urab* Froaleo (lh* National ledentiuu olMrrrhtnlil etllmalet that crwtraband im-portt amount lo II billion pn year Wbiar thtt rttouir teemt clrarltigureC maUion l> poaaabar Tha wotatd accouaat laar about SVA fmllioa al CraVtatahu't drag eanuagt again awaking lhaternwg of thr total atg-fiataneed coMiaband "

It Aitotrwe mainamtUlan It ancorpo-

raiioo into ibr pool of Ceiomctan "blacfc

whichw .at ett.iualed to beI

bilhon rh*e* it no way of irl.'ij how much gt>*g

' tt>-an imlt Bfirnwian bi-c nokiliwn t> on loi mwi-rtaaw hanlinulr ihr. iu*avita) ni^aari aut ertr

money actually enteis Ccuooibu. We can rsimate how nvuch il tnc*ietiied trd bow much it used to pay for illegal Impom The residualhe Colombt-an black dotal market. It taken cul of the country in suitcases, oc Indeed never enten Colombia. Another analyticalit the diipotaioo ol* fundi acciulna to Colombian nationals who may be involved in llir "do wmi ream" aspects of roerkeitig cocaine and man Nine in Ihe United Slates There ii no way of qmntif ytrg lhear sums, either

0 the EnybaHy In Bogotam liar attempt to estimate ihe usestly earned Jul la is (which then probably totaled closewicegorr) using itxnewlut diffeienl ovrrhodltndA comparison of the two, both admittedly very rough,iidhate* that illicit Imports were similar us both years (on the order of HOT million! that the proportion of ibe total inat was moral trad ihrank:0 perceni)nd lhal the share going Into Ihe illicit dollar pool in Colombia or held abroad shrank tbefrom aboutetcent lo less loanel cent This would Indicateurprising amount of Colombian earnings from contraband.of the total, return toCnkvnbla either tsmnnrtlicd adcitirms lo official foreign etchs-nte holdings or as ulicir Imports

It fining* nodAsnjr fcilanff.ghile lower12

important scarce of iWerrutloral reservesnlintle second lo coffer, however, andercenlaee of colle* tipoits have not grownricept1 when colfetercent^

drug earnings have beencontributing lo the surplus it Ihe ctirn-nlIOTA tnnd Iheir evident declineomributed lo ihr negative prdoimaiuvcurrent account In thine yei

l'ee earning! are much more im-pcaiani in eipfoinang changes inurrent account balance than are drug ruteingi

is lotlc doubt that moneliied drughaslrnng camrsinmry preuuebasic money supply6 andin net Merrill incut retfrvrt cnnslllbtedfactor in prhnirt nronrtart e> cannondeclitilrg moretitalion of drug earnings has lacut thai, whiletgnjfk-anl part ol primary imntarv cipannon. drug earnings were less1ban as the69

fficialrdieaw lhal variations inupplr andore-tijed drug eamitags have not bad much short term impact on itilalion rtles Tire Columbian rrntnl bank's esptarubon (or thr lick of resprrmveness ofIion lo vailillnm in money supply is thit "the rate ol inflation is besetind of incrtii caused bt ficfcet collide Ihe realm of mooetaiv control" These

faclori are ltdlitionarvol both *nlcri

induilitallil* which are codified bi liulriatoa

If. Aparl frontand Ihroal drfiWh* wnra of ih* aaamllrai rotna of ihr aancvhaiiJap>r ihr hey drtrintinuc un reatuhi-tt eate-

ixwt Wr-rli Ihiin Ihr (WBuoi'i pisve indai The

cccrelalioii of Inflation rate* between 1UTI andilb luminal airvcuftaral frowtfioir utnLli (anlhal "ilh picnrv Mpplt arcwlh

Noxco-DoJIiai.otential Th.-oi'

Ocantaao pn.Me aarU bald tblvai pn*ai.,

nil hfBnei Jolbii.iiiAalral of ahadioa of thea*ia<at*>the Ensbaai pnnti -i' their

wuhiLineotBe*iir of the Cotomfc.-an awni ForZ drui eaminei efillon ii mil the cnmblned sale* ol the nine Urte-ri (Alcoibaanrompamri Thr dnoiptlvc ef (eel ol that (uridi could be

liceVd (rpntlialeai uiiiHiiiMi

A number of rvrnti could rncwiaa* ihe return laaMabtoad

tied eVxW ia US inlaeeaihat. eaeuro* tn ihe Coambtaa linaacaal market owe attract lie

lacreated US mfcecanseni effort* and ihe USforfeiture la-aailiut diu< iitflickeri

The Colombiani amnesty, ssdtteb aavcotirnae* the declaration ol hldnrn a* tats lanlboutoth inaade and carivor Caeaaahia

aa current dornratic aeemorait piubliai.atind to ledonndeti the benefit* of mi arflui of fund* to ouraearh ihe

II. Unit funds, however, do pnar sortr potential dintjeii io Ihr financial and induitrlal lector* of Co-Itimhia'tnnimaitv The case af Fein Cerrta. president of Ihr fuladaeaonal. ut inatrjcOve Coerea -a. able to puichaae contra* of CohaabtaI ateeed laeprvcamor onlyThe faabare af let Bancomay hat been relatedaecotioIn lha in.-

to thel'-i> ftnaaeiil paeae in CilomKal irnee

he Uti thai most tare* drponton in the llarco Si clonal have not come lot and in claim their kSteU tt-idi lo tonlirm raSpK-luns lhal the Banco Ntclutal ail uied lo harbordeiai money

e'hftV eht* "eww| the pmtant i

awarems of the trad io menclbn reeabtiioo of the loainoden cothaaj ret lo indolethe ef feili-erew. ef ai resukatney aaanaw* hat incrraxd In ihntTfinancial aretoe and H* undrrcip lull ted timeould eaiily be di*-tupted by irlalively mull amouifi id new money.

annex c

biographicnarcotics traffickers

Colon*ton Trafficking Familial

J InCok-tmbta the trimnnrj to reft* to tn indiicnoas group of rnrcotics Ir iffho hive is-aisrcticryi wiih Colombian ultima Is llvine; tbratrl. nsrralty ia New Yorkerids. but who have uo lire to ihe Sicilian Mat ii (Com Nostra] exeept. perbapi. on ihe haiii of Individual busmen transactions- Tbe (arm hu. bees adopted because mac, Cofomfalan trafficking network* lie bated largely or.nded ftttilv rekiiion.'iiip. Thate net-oiks formlher Itrnily groups lo aiiend thourlain aceea lo spaedicnch a* clandestine laboratories Both men and women pariktpiie In all aspect* of llir drat Made, but women serve at cuur-eti more often lhan men. Family member* alio engage in legitamalc businesses,otels, and contlroc-llon firms are lypNa) of Iheirn addition, roost Itrae Smlly oiganination* own senral farms or laarhm. many wHh aire rati Landing Unps

atilarrhal form of organ nation eiitit in moil nrlweakt Al tl* tnex Hands the Parlnnn {godfatherX lurrounded by h's Iriltted lieutcnanti. oflcri ton* or

poiilioiu Alliancv* "Jelween patriarch; gig common pure, but networkseiy merged The death or long-term im-irimnnieatatriarch has yo-oielirae* kd lo the tfusctutton of

ypical hrge cocaine trafficking orgaiUittion operating out of fSarranquitla would Involve about ZOO people, both Colombian* and foreigner* Several tub-ordlrute iralficking group* handle ihiptnenl of the cociine One tucb organiialionegistered cvtuoerciil ait cargo service lhal wa* iited almost eiciusivelv lo tramfer narcotk* lo ihe b'niled Stales Anther groupleet of iheunp boats lothe dins Private yacht* and smallit.ft were also chartered In al least one instance. Colombian military pilot* allowed narcotics to be secreted on military aircraft making regular training (lights between Colombia and the United State*Colombia, cocaine Is generally shipped bv truck

couriers stand al the bottom of thepyramid Such couriers, who hide the taarcetics cm their persons or In their luggage, get one-thirdromised payment upon ka'iasj Colombia and the remainder when Ihe cocaine is delivered In the United Stales. Some couriers travel on US passports, either forged or bought from US tourist* tn Colombia

Qr^ur'ration* and Spheres of Infl-jense

Embassy offu-ial* In Botsottaid thti. liilujgb most Colombian* view the trafficking organi-sations as monolithic in structure, these organ; fallow can be broken down both geographicallynction-aBy. with lha miniuani, ir.cl'aijuilone dcalcn active principally onelh coast and the ttwalnnopen ting mosllv in milbern Colombia aid the mayorhird clesler ol trafficker* operates In the eastern plainsinos* Some Cokxnbian observeri have attested lhal the traffickers, who has* become wealthy and Infhienlial through the drug trade, :aw control ihe cation,aiollel money market, linincing key politicalndim all ntHgHug lhaaa wholo thwart tbeir power We sedge Ihu lo be an overstate* mtnl of their jreie.it role

B. In our hidgrnent. tha traffickerott prevalent in four areas of Colonibiin life- local poh-lics. economics, sports, and hit squads thai protect

usually

en volthe corruption of tolititiini in order to facilitate onerjlions. Their political Influence it mott evident on the aoeih cout. where nitcvtiei trafficking hu become so pervaaiie that it Is difficult tobetween trtffiekeci and local potittrtan* seeking support, according lo US diplomats in Bogota. They lay that druglso used lo enure that future political loader* do net become antidrug ciuudeii Funds are also loutlrvrti employed lo buy oil law enforcement olliciiL*inis" Hive emc**Oieei of

NOMN

ceuiii. in the rini Instance In avoid arte* ind in ihc Utter to jvoid pnoccution if aliened Low-paid tnldlaii and potter air particular* susceptible InFormer Frettdeot lullo Turbay and hatinister admittedhat the chief leaaon thai the armed forces withdrew from the antidrugm the Cuattra regno0 wai the corrupting influence that vast sums of money had on milthary pei*in.-ir'.

Economic, tofluene*

y virtue of the large amount of money with which they deal, the traffickers' activities Impact significantly on the Colombian economy, as fadieted ineat cilate Is the sector of the econceny in which their influence has been most notiewarA*& both urban and rural real estate prices in certain areas hive skyrocketed as the traffickers upgraded their holdings In urban areas the trafficker* haw focused on luxury apartments and hotels in high-reni districts They have also purchased large tracts of rural land in lh* Gueiiia and Llanos regionshere much of CoiombU'i maiijiiana and coca is now produced on previously unproductive land

The Sports Cortnoelion

S. The US Embassy in Bogota has ievened that till licfcett' influence Is applied to soccer and cycling in Colombia Their involvement lo soccer firstmaioraauaryhan two

Spanish rafctees who had effsciattd at games Mini in Colombia claimed publicly thai the nircoltn trgf-fickers bought games bv bribing the referees EaphUv ing that concern for their personal safely kept ihcm from making public disclosure* while in Colombia, the officials gated that Ihey were threatened and abufed during their stay because lbey turned down offers lo guarantee milch results The Colombian Sportsmbsequenllytheses in otherowever,bellingeitite field lor drug money. According lo US Embassyt least one soccer learn. Nutonal de Medellln. i* owned by an unidentified families dealer

0 Ineports appeared in llie CoIcnbUn press ol trafficker involvement in bicycle racing, wiih posuble drugging of lome participants. Again ihe Sporti Federation brushed olf Ihe allegations The chock initially amused by the publicity abated, and no imeitigtnni were mad*.

Ratal iom With tha Audio

n our virw. lb* irallickrn* influence on ihe CeaOrnbian mediaa itudy id -inning through irrmudataon si We ihre* i* no hard evidenceaaeauaie Irafftckn melt em *tthg* orcttki'm assda* tha Crlibinds*ary has

aloae Klilr to ripear orc-ganaed crirne W*

he media Killer from feareeling of helptesseess aa the fan el the trif lichen US Enabass-ofltciab In Bcai'abe media have reached anorrtsal agreement withhe kindsthai can be passed on Torse include:

on the trailic in general without raatnang

ttepiinls al asnrie* that have app*ared in fecetgn puhlicatioas and-or broadcasts

cmriagc nf individual incidents oa 'rinwrltoro, a; long is rq.uvciligalivettempted

with lefeirnce lo rado.uscor lliat trafficked are inmlved in cupe radial coveo-bono, lha* stalion is owned b* the rodriguez family cfhich thr cotomh.ii rumc* mill ha: linked to tbe cocaine ttaflickr'i in thr cent* area.

eNgslk IVcggihoaahiutfttj ond Irollitkan

11 tbetrnil lack ef laahwiwim for the

ev.li aaxoticitprcaalt tmar

aanedmong pacta: otpcoenb are bote tnec-ben ol ihrrhe uttrftaetan.

ew pcti'ical trrlen ar>l laatnest groups

cadidg to the errbtuyew people cppise ecotrci rffottser profit from th* jiuw,

tilde, others do actthai mari'iana it harmful

aascag the lacierocal minority thai ha* calledngaliaalioo of mariiaina to thai it woatd bring io revenue lot ihe government and provide protpeiriv lot lh* tndmrmnii gmw-rs for several years the natural attociati'iii ofnstitutions finublicilv cainiwicn iii favor of legal-ling the rullivaimn and eapvtl ol maiiiuana in iwo. lh* cohinabun weaken untune, lh* naltont lrgrvt labordrra>iun. alto called publicly loi ihetioti of mariiattna.

lthough tmuaxhiva ia nerraaiiili coraat eeed irprehrmiblr uiuicl (tlc-mbiiro-let MfMut tiaftirhnri tn br mlccording in US Farihauv calii-iab In fcajota Theae diplomat! *a* lhalilm of tbr ascial ablr an- report edl.ihrar children flora baah-ttaiu* *efioeh (hat an now aur-una; lata* irnnlnn of chilciirr. from nm-tau nehe lamUirt la nat arrai hvwr.r* trafficker* airh- teerceted hat admired Aa ashr* mi laitnea/oottc* duln -to iiikaboy -to made ha. loetiaBe and otaar bath lo do (rood works Atttaa* Baikal'* proraetieen the ton ei-daonharifc aad lha aru-atalniOrM Ct-tratl for lha

'ra'ficheri

f3 One lyravral trailukar operate* out ol Wed-llin. impoeteni rata ooraIl acoruae.itofaini nf iwraln* monthly Hi* wife aid ton hrad hli nai<otKi red work In ihr Unitedun-tiilawticalona, Spain, head* hi* European net v. orhr tuff Icier own* Ihtee apart-

Ki Mlaeil and thrra- ranchrs in Florida, one of ahicbandlnBriceannuidaie bahelar-optrr

cbua, trall-ckaa haada aOtaa^DB. can of aVajcta, -v. office* mHi hatgainhen hr raracad arreat for narcolica

ckinf by MraJimIaucrafl In Septembrr

he Cohirriblanikwjano of cocaine thai he had cached for ila-anent to the United St*lea At ihai time he had mot*ilium US dofku* in hit rasadnacr and uwned ewer lwt> doaaii vehklet Uted la tiaff Irklnaoomendine, arip and mini llaht aircraft in Miami Ha

own* aeaeral leeptimaie tnnaettet In Colombia, in-

caldlna; aadealrnnp

aaothei iiaffictrretworkmat ml Medefhota aeaeral botneoea tad

lia the areainn tap bei>ea*rd it the eonitracticaia ihr Iowa of Taiaia Aftti pnace rvjded ou of Ha rtnehea,coca-procntini eip'iprnenl wai in opetalion he was finedO and Iiugitive from in

dlssfm-natton not-cf

i. Thhc* dw^ow by th. DVKtanM ol irrt-jfera ofxy tb<ia torf

yr*ov fcto or harny

bohrtk* wHMaoncffo* ttff

tor. mouaad ittimdi far tha dt^tmorrf of stat*

t orator,afar-ey, forohkosanatory ol Dcrfom*

and th*llvi of v* jotnt Chi*fi- Ajutoc&nf cw ol start lor Milorlrackr ol ncnrdofry

m CM oflir

i. ork tor of lrttjftgikntb. for ha^^jortari. merita corp*

rtfory tor Dofora (vogrcm. lor ft*> of Er*roy

k Atttanl divartor.for th> 'aom fckr*sv ofcoctor of WA. farfew-ty

t or$aurffy. lot ftw oapcrtirant of hv

traosicy

iw chpt 'ytor vtl^v- r-afhrtawt agoncy

vn*o" lctf ^storaft oi

itay ratata it for o

r ti'tii :i* im";f *rjl *

* to tha for-wlng oorvv Or porruik* *hodCr batf it* forworclrto

nordorxa wi*2

tmf rfcti ovxutwt*t it wxtofv1*^

Original document.

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