LETTER TO WILLIAM J. CASEY FROM THOMAS G. BYRNE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87M00539R002804600026-1
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 85
• Document Creation Date: December 22, 2016
• Document Release Date: May 18, 2010
• Sequence Number: 26
• Publication Date: November 1, 1985
• Content Type: LETTER

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EXECUTIVE SECRETARIAT
ROUTING SLIP
ACTION
INFO
DATE
INITIA
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DCI
X w
NIE
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DDCI
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EXDIR
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D/ICS
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DDI
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DDA
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DDO
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DDS&T
9
Chm/NIC
10
GC
11
IG
12
Compt
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D/OLL
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4
D/PAO
15
D/PERS
66
VC/NIC
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-DIOGI
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C CPN
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SUSPENSE
Date
Exe five Secretary
.1 Nov 85
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 U.S. Department of Justice
Drug Enforcement Administ
Executive Registry
85- 43(08
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Honorable William J. Casey
Director
Central Intelligence Agency
Washington, D.C. 20505
Dear Mr. Casey:
NOV 11985
Enclosed is the 1984 Narcotics Intelligence Estimate (NIE)
produced by the National Narcotics Intelligence Consumers
Committee (NNICC). This report is based on the combined
expertise of NNICC member agencies and is the most comprehen-
sive assessment prepared for the Federal Government on the
worldwide illicit drug situation. Also enclosed are background
material and suggested responses to questions we anticipate may
arise following general release of the report next week.
Your representative to the committee will receive additional
copies of the NIE for internal distribution.
We appreciate your agency's cooperation in the preparation of
the 1984 report. If you require additional information, the
NNICC will be pleased to be of assistance.
Sincerely,
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Thomas G. Byrne
Chairman, National Narcotics
Intelligence Consumers Committee
Deputy Assistant Administrator
for Intelligence
STAT
 Signed by THOMAS G. BYRNE
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S. '" d! atnant Atlataistretor
for XQ.rlhot+
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the 1 report.-.:.'U you require?additional ittlbrtiation, tiff
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NOTICE:
behalf of the National Narcotics Intelligence Consumers
Committee, the DEA Office of Congressional and Public Affairs-has
agreed to make a press announcement publicly releasing the
1984 Narcotics Intelligence Estimate on Wednesday, November 6,
1985. This will allow the principals several days access to the
report before its release. It is embargoed for release on that
date.
October 31, 1985
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The National Narcotics Intelligence
Consumers Committee
Narcotics
Intelligence
Estimate
1984
October 31, 1985
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The Narcotics Intelligence Estimate (NIE)
This annual publication is the product of cooperative efforts of
federal agencies with drug-related law enforcement, foreign and
domestic policy, treatment and research, and intelligence
responsibilities. In 1978, the following agencies established-
the National Narcotics Intelligence Consumers Committee (NNICC)
to coordinate collection, analysis, dissemination, and evaluation
of drug-related intelligence.:
U.S. Coast Guard
Customs Service
Department of Defense
Drug Enforcement Administration
Federal Bureau of Investigation
Immigration and Naturalization Service
Internal Revenue Service
National Institute on Drug Abuse
Department of State
Department of the Treasury
White House Drug Abuse Policy Office
The Committee is chaired by the Deputy Assistant Administrator
for Intelligence of the Drug Enforcement Administration (DEA).
Representatives of the Central Intelligence Agency (CIA) and the
National Security Agency attend NNICC meetings as observers.
Separate data bases and methodologies are used to produce
separate estimates of drug production and use.
In recent years, the NNICC has reviewed and updated various
estimation methodologies. This continuing effort has resulted in
a number of revised estimates for previous years. The NIE, which
is based on the best data currently available and on'the combined
available expertise of NNICC member agencies, is the most
comprehensive assessment prepared for the Federal Government on
the worldwide illicit drug situation.
The 1984 NIE is the eighth estimate prepared by the NNICC; the
first report was prepared for 1977. From the outset, the NNICC's
major emphasis has been to provide joint drug estimates to all
federal agencies, but the estimates are now widely used in the
private sector as well as by foreign and state governments.
Over the years the NIE report has changed in scope, often in
response to needs of consumers and the availability of data. The
broad categories of information generally include: the foreign
origin of illicit drugs, the quantities cultivated and produced;
illicit production, consumption, and availability in the United
States; trafficking patterns; and money flows associated with
drug trafficking. Efforts are underway to resume inclusion of an
estimate of the retail value of drugs consumed in the United
States. Because of gaps in some of the data used to derive the
estimates, there has been a high degree of uncertainty to the
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resulting estimates. The Committee has continually worked to
close these gaps. The 1984 report brought together considerably
more information than had been available in the past. Although
the estimates will continue to be refined as improvements are
made, the changes in the resulting numbers are expected to be
less significant in the future than they were in the 1984 report.
The estimates continue to be considered not only the best that
are currently available, but also sufficiently accurate that the
general trends portrayed can be considered reliable.
The NIE cycle is normally about seven months and usually begins
late in the year covered by the estimate. In December, a draft
outline is circulated to the committee which reflects format and
content changes agreed upon during NNICC meetings over the
previous year. Once the outline is finalized, committee members
are tasked, usually in early January, to submit data within their
areas of responsibility for inclusion in the NIE report.
Concurrently, the NNICC Subcommittee on Production (DEA, State,
and CIA) meets. to prepare foreign drug production estimates for
the Department of State's International Narcotics Control
Strategy Report (INCSR) to Congress required by February.
Although these estimates can be revised as additional data become
available, they are the first concrete step in preparation of the
NIE. Submissions are received from NNICC members in late
February and a first draft is prepared in March. The draft is
first coordinated within DEA and then within the NNICC. Areas of
disagreement and questions are then reviewed to ensure that the
data used were the best available. Before the final draft is
begun every effort is made to resolve questions through
conferences between NNICC members. If a disagreement remains
unresolved, it is sometimes reflected in a footnote-in the
published report. The scrutiny the estimates are given during
interagency coordination has strengthened the estimation process.
The NIE is currently scheduled to be distributed in-June of each
year if there are no unanticipated delays, i.e., delays in
receipt of data or in coordination.
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N
NNICC
E
The National Narcotics Intelligence
Consumers Committee
Narcotics
Intelligence
Estimate
SUGGESTED RESPONSES TO INQUIRIES
October 31, 1985
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Question
How was the domestic marijuana production estimate prepared?
Response
Because. domestic cannabis cultivation differs so significantly
from foreign cultivation, the same type of crop surveys cannot be
conducted. Therefore, a different methodology had to be
developed. The goal of the domestic cannabis eradication program
was to eliminate all cultivation that was confirmed. The
estimate of the amount of cannabis that was not eradicated is
based primarily on a survey of data regarding reported cannabis
cultivation maintained by the eradication coordinators in the 50
states; it is estimated that as much as 1,700 metric tons of
domestically cultivated cannabis may have.been available for use
in the United States.
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Question
How are the production and. consumption estimates derived?
Response
The estimating process is lengthy and very involved. The
production estimates are prepared by the NNICC Subcommittee on
Production and are based on an analysis of all available data
regarding cultivation, crop and weather conditions, eradication,
loss, seizures, and potential yields. The consumption estimates
are based on prevalence and frequency of use and purity data.
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Question
Why were the consumption. estimates for 1981-1983 revised?
Response
The consumption estimates for 1981-1983 were revised to be
consistent with the estimates for 1984 and therefore provide a
valid indicator of trends. An improved methodology was used for
the estimates which brought together considerably more.
information than had been available for past estimates.
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Question
You have stated that, as methodologies and data bases are
improved, additional revisions maybe made in the estimates
published by the NNICC. In this regard, how much confidence can
the public'have in the current NNICC estimates?
Response
The major point to remember is that the estimates published by
the NNICC represent the best information currently available from
all possible sources. As noted in the Preface to the 1984
Narcotics Intelligence Estimate, the development of reliable data,
upon which to base estimates is difficult because production and
distribution of illicit drugs are illegal, underground
activities. We believe that the estimates, despite gaps in.
information, are sufficiently accurate to portray generally
reliable trends.
We are continually working to close the various gaps in the
information which goes into the estimates. Additional refine-
ments in the consumption estimates for 1981-1985 will be made
possible by research currently being sponsored by DEA and by
updated survey information. Although the estimates are being
refined as improvements are made, we can expect changes in the
resulting numbers to be less significant in the years ahead
because of an overall strengthening of the estimation process.
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Question
What correlation is there between drug seizure figures and actual
drug activity in the United States?
Response
Drug seizure data tend to reflect the results of law enforcement
activity (e.g., the number of individuals arrested, quantities of
drugs and assets seized, and conveyances from which seizures were
made).. They do not reflect the quantities of drugs which.werenot-
interdicted-and which consequently reached user.populations.
Therefore, seizure statistics cannot be used by themselves as a
basis for estimates of quantities of drugs available or consumed.
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Question
What is the scope of the 'bazuco' threat in the United States?
Response
'Bazuco' is not a major problem in the United States. The
smoking of coca paste and cocaine base was reported during 1984
in Miami, New York City, and Los Angeles. There has been little
information regarding efforts by South American drug traffickers
to introduce 'bazuco,' which is a more critical problem. in South
America, into the United States.
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Question
What caused the sharp jump in cocaine-related injuries and
Response
The rise in cocaine-related injuries and deaths resulted from
increased use of cocaine in combination with other drugs. There
was also an increase in other more dangerous forms of use, such
as "freebasing" and injection. The number of hospital
emergencies resulting from intravenous use of cocaine and heroin
in combination rose 37 percent. Fifty-nine (59) percent of those
who died from cocaine-related causes were taking more than one
drug. Emergency room admissions resulting from the use of
cocaine in combination with alcohol, heroin, and PCP have been
increasing since 1982.
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Question
What is the degree of reliability for the current Heroin
Signature Program as an indicator of the importance of various
heroin-producing regions?
Response
The Heroin Signature Program, which through chemical analysis
classifies heroin exhibits according to manufacturing process and
then by region of manufacture, has generally been quite reliable.
Heroin laboratory activity has become more geographically
diversified in recent years, however, and processing methods are
no longer always unique to ageographic area. Therefore, conclu-
sions regarding the origin of the heroin are not as consistently
valid as they were in the past. DEA has a ,number of programs
underway to strengthen the program, including planned research to
redefine the various signatures.
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Question
Why was there was a 31 percent increase in heroin-related deaths
in 1984?
Response
The longer an individual uses heroin, the more significant the
resulting health consequences. Available statistics indicate
that the addict population is aging and that there are a larger
number of long-term users. There was a 57.p.ercent rise in deaths
among heroin users 35 to 39 years of age and a. 60 percent rise in
the 40 to 44 age group in 1984. In addition, the increase
occurred almost exclusively among users of heroin in combination
with other drugs.
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Question
How do we explain the 42 percent rise in heroin consumption in
Response
The 42 percent increase in heroin consumption between 1981 and
1982 was caused primarily by a rise in retail purity from 3.9
percent to 5.0 percent. This purity increase alone required a 28
percent increase in quantity'of pure heroin consumed. The
remainder of the increase was probably caused by a combination of
increased frequency of use and more users.' As noted in the.NlE,
the number of heroin users in the United States was estimated at
490,000 in 1981.. Although no later estimates have been made.,
heroin hospital emergencies in subsequent years suggest that the
number of users has increased.
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N.
NNICC The National Narcotics Intelligence
Consumers Committee
E
Narcotics
Intelligence
Estimate
1984
The Supply of Illicit Drugs
to the United States
From Foreign and Domestic
Sources in 1984 (With
Near Term Projections)
Queries should be directed to:
Office of Public Affairs
Drug Enforcement Administration
1405 Eye Street, N.W.
Washington, D.C. 20537
[phone]
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Preface
Since production and distribution of illicit drugs are, by definition,
illegal, there are little reliable data upon which to base estimates of
the quantities of drugs involved. Most of those statistics which are
available tend to reflect the results of law enforcement activity (e.g.,
the numbers of individuals arrested, quantities of drugs and assets
seized, and conveyances from which seizures were made). They
do not reflect the quantities of drugs which were not interdicted and
which; consequently were assumed to have.entered user popula-
tions. Therefore, these statistics cannot be used by themselves as
a basis for estimates of quantities of drugs available or consumed.
Because of gaps in some of the data used to derive the estimates,
there is a high degree of uncertainty to the resulting estimates. It
is believed, however, that they are sufficiently accurate that the
general trends portrayed can be considered to be reliable. Separate
data bases and methodologies are used to produce separate
estimates of drug production and use.
The Narcotics Intelligence Estimate is the product of cooperative
efforts of Federal agencies with drug-related law enforcement,
foreign and domestic policy, treatment and research, and intelli-
gence responsibilities. In April 1978, these agencies established the
National Narcotics Intelligence Consumers Committee (NNICC) to
coordinate foreign and domestic collection, analysis, dissemination,
and evaluation of drug-related intelligence. Membership consists of
the U.S. Coast Guard, Customs Service, Department of Defense,
Drug Enforcement Administration, Federal Bureau of Investigation,
Immigration and Naturalization Service, Internal Revenue Service,
National Institute on Drug Abuse, Department of State, Department
of the Treasury, and White House Drug Abuse Policy Office. The
Deputy Assistant Administrator for Intelligence of the Drug Enforce-
ment Administration serves as Chairman. The Central Intelligence
Agency and the National Security Agency participate as observers.
i
This Narcotics Intelligence Estimate for 1984 is the eighth estimate
prepared by the NNICC. In recent years, the NNICC has reviewed
and updated various estimation methodologies. This continuing ef-
fort has resulted in a number of revised estimates for previous years.
This document, which is based on the best data currently available
and on the combined available expertise of NNICC member agen-
cies, is the most comprehensive assessment prepared for the
Federal Government on the worldwide illicit drug situation in 1984.
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Table of Contents
Preface i
List of Figures 3
1984 in Perspective 7
Projections 8
Chapter One: Cannabis 10
Chapter Two: Cocaine 22
Chapter Three: Dangerous Drugs 36
Chapter Four: Opiates 44
Chapter Five: Drug Money 62
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3
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List of Figures
Figure 1.
Estimate of Approximate Quantities of Drugs Consumed Illicitly
in the United States, 1981-1984
Figure 2.
Marijuana Consumption in the United States, 1981-1984
Figure 3.
Marijuana Use and Trafficking Indicators, 1981-1984
Figure 4.
Marijuana Seizures from Various Smuggling Conveyances, 1984
Figure 5.
Estimated Sources of Marijuana Available for Use in the United
States, 1982-1984
Figure 6.
Hashish Production in Major Source Areas, 1984
Figure 7.
Probable Sources of Hashish Available in the United States,
1984
Figure 8.
Hashish Seizures from Various Smuggling Conveyances, 1984
Figure 9.
Cocaine Use and Trafficking Indicators, 1981-1984
 IIIIIIIIIIIIII, ,i {.-
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Figure 10.
Estimate of Illicit Cocaine HCI Available for Export to the United
States, 1982-1984
Figure 11.
Cocaine HCI Consumption in the United States, 1981-1984
Figure 12.
Estimated Cocaine HCI Production by Country, 1984
Figure 13.
Probable Sources of Cocaine Available in the United States,
Figure 14.
Cocaine Seizures from Various Smuggling Conveyances, 1984
Figure 15.
Selected Dangerous Drugs Use and Trafficking Indicators,
1981-1984
..Figure 16.
Dangerous Drugs Consumption in the United States, 1981-1984
Figure 17.
Clandestine Laboratory Seizures in the United States, 1981-1984
Figure 18.
Narcotics/Analgesics and Heroin Substitutes/Supplements Use
and Trafficking Indicators, 1981-1984
Figure 19.
Heroin Consumption in the United States, 1981-1984
4
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Figure 20.
Origin of Heroin Encountered in the United States by
Geographic Area, 1984
Figure 21.
Heroin and Morphine Use and Trafficking Indicators, 1981-1984
Figure 22.
Heroin Seizures from Various Smuggling Conveyances, 1984
Figure 23.
Opium Production - Southwest Asia, 1981-1984
Figure 24.
Opium Production - Mexico, 1981-1984
Figure. 25.
Opium Production - Golden Triangle, 1980-1984
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Executive Summary
1984 in Perspective
Marijuana consumption in the United States dropped an estimated
3 percent in 1984, primarily as a result of declining use among young
people (age 25 and under). Marijuana-related hospital emergencies
decreased 9 percent although there was increased use of marijuana
in combination with other drugs. Marijuana, including the more po-
tent varieties, was readily available in all major metropolitan areas,
but there were occasional shortages of Colombian marijuana as a
result of curtailed imports from that country. Colombia, however, con-
tinued to be the major source of marijuana available in the United
States. The supply of Mexican marijuana more than doubled, and
that country became the second largest U.S. supplier. Net domestic
production decreased.
Cocaine use remained widespread. Overall U.S. consumption rose
11 percent. Cocaine-related hospital emergencies and deaths rose
significantly, reflecting the increased frequency and complexity of
cocaine use. Coca paste and cocaine base smoking was reported
in several U.S. cities. The wholesale price of cocaine hydrochloride
(HCI) started to rise, but remained below prices in 1980 through
1983. Retail prices in most metropolitan areas were relatively con-
stant. In spite of setbacks experienced by traffickers and an emerg-
ing role by other countries, Colombia remained the principal cocaine
IHCI processing and distribution country for the United States.
The consumption of all illicitly used dangerous drugs increased an
estimated 15 percent, mainly reflecting increased use of metham-
phetamine and phencyclidine (PCP). Fentanyl analogs continued
to be used. There was decreased use of methaqualone and the
heroin substitute pentazocine.
Heroin consumption decreased an estimated 1 percent in 1984. The
using population continues to be composed primarily of long-time
users or recidivists. The most recent data available is for 1981 and
estimates the number of heroin addicts in the United States at
490,000. Heroin/morphine-related hospital emergencies decreased
1 percent, but deaths increased 31 percent. The increase in deaths
can be attributed almost exclusively to the use of heroin in com-
bination with another drug. There has been a growing awareness
of the strong connection between intravenous heroin use and the
contraction of Acquired Immune Deficiency Syndrome (AIDS). Ac-
cording to DEA's Heroin Signature Program, the proportion of
Southwest Asian (SWA) heroin available in the United States in-
creased slightly, representing half of the total U.S. supply. Mexican
heroin remained at about one-third nationally, while Southeast Asian
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(SEA) heroin accounted for about 17 percent of the total available.
Retail heroin averaged 4.7 percent purity.
Figure' 1 compares the approximate quantities of drugs consumed
illicitly in the United States during the last four years, as discussed
in more detail in the following chapters.
Estimate oaf Approximate Quantities of DruPogs
Consumed I~hcrtly rn the United States,
DangerousDrugs~(billion
Elm 9-W.11.' Alil--A
Marijuana (metric
tons
8Z. 4 8,200-
.000,-.",-
8 000
7,800!
11,,400a . 10,200
9,600
9,200
imption based~esttmates. Estimates for 1981 through 1983
moree detarl.a`see Cheaters 1.. d2 andW4 %Onewmetnc=tong ,
specfve~Study (TOPS)Ainfformat~on. Estimates ford subsequent years are based
Drug AbusetWarnrng Network, (DAWN)mdata therefore direct*comparisonsPoa~re
Quantrtyrs ounded to~thenearest 10mrifion dosage units ~? am a"a
The heroin consumption estimate in 1981 was based on Treatment Outcome
Supply basedd data rndreate that a largerquantrty~of cocarn e$was a vailable for core:
sumption This ifference isvconsrstent with indicators suggest nggthat tk e suppiy.of
Projections
Marijuana consumption trends are not expected to change in the
near term. Decline in use among young people (age 25 and under)
is expected to continue, and decreases in marijuana-related hospital
emergencies are likely. A greater availability of generally higher
potency varieties of U.S., Mexican, and Thai marijuana is projected.
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Shortages of Colombian marijuana are possible in part as a result
of a large-scale herbicidal eradication campaign in 1985. Resump-
tion of herbicidal eradication in Belize would also prevent that country
from increasing production. It is unclear how much of the void traf-
fickers in other source countries will fill.
Cocaine availability will remain at high levels. The number of users
is expected to stabilize, although intensified use patterns will con-
tinue to result in a high incidence of adverse health consequences.
Although no significant expansion in the number of hectares of coca
under cultivation in Bolivia, Colombia, or Peru is anticipated, an im-
proved data base could show higher estimates. The Colombian
Government is considering the feasibility of an herbicidal eradica-
tion campaign against coca. Colombian traffickers, however, are
likely to continue supporting coca cultivation in Brazil, Ecuador,
Panama, and Venezuela. Coca cultivation could also expand
elsewhere in the world, such as in the Pacific Basin. Cocaine traf-
fickers will continue to find it difficult to obtain sufficient quantities
of ether for their laboratories. As a result, cocaine conversion activ-
ity outside Colombia will increase, particularly in Europe and the
United States. Cocaine distribution and use throughout the world
is likely to continue to expand in the near term.
Dangerous drugs use in the United States is expected to remain
relatively unchanged from 1984. Use of methamphetamine, PCP,
and codeine combinations is expected to increase, resulting in more
hospital emergencies and deaths. No changes in use of 'look-alikes'
and MDA are anticipated. Continued decreases in the use of metha-
qualone and pentazocine are expected, but some users will
substitute other pharmaceutical opiates for pentazocine. Enforce-
ment initiatives against laboratories producing synthetic narcotics,
e.g., fentanyl and Demerol analogs, are likely to inhibit the
emergence of these heroin substitutes.
Heroin use in the United States is not expected to change signifi-
cantly. Because of adverse weather conditions and opium poppy
eradication in the Golden Triangle, production is expected to
decrease, but an increase in SEA heroin availability in the United
States is nevertheless possible. Some increase is possible in the
quantities imported from Mexico and increased imports are pro-
jected from Southwest Asia. i
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Availability and Use in the United States
Marijuana consumption in the United States during 1984 was
estimated at 7,800 to 9,200 metric tons, a 3 percent decrease from
1983 (see Figure 2). Athough demand for more potent grades of
cannabis, especially sinsemilla, remained high, their higher cost has
tended to limit use. Marijuana use among youth and young adults
is believed to have declined steadily since 1979, based on a number
of independent surveys. The proportion of high school seniors who
admitted using marijuana or hashish during the year dropped from
51 percent in 1979 to 42 percent in 1983 and 40 percent in 1984,
according to the National Institute on Drug Abuse (NIDA) Annual
Survey of High School Seniors. Reported daily use by high school
seniors has decreased steadily from 10 percent in 1979 to 5 per-
cent in 1984.
Figure 2
Marijuana Consumption in-tithe United 'States,
1981-1984 *
(metric tons)
1981 1982 ` ? '~1983 ? - 1984
(% change) ; ,. % change),:. (% change)
*Marijuana consumption estimates for 1981;,through 1983,"have been revised to be
consistent with the 1984 methodology. Drug prevalence data from the Nab'onal Survey
on Drug Abuse for 1979 and 1982 were'used.in conjunction with estimates of the
population not covered by, the, survey to determine the marijuana-using population
within the various frequency of use categories n 1979 and 1982. These data were
then combined with available information`frorm other sources as an indication of popula-
tion trends from 198140 1984. The resulting. conansumption estimates are consistent
with supply estimates after adjustments for U.S: d transit country seizures and for
loss in transit. All consumption estimates are subject to further revision upon receipt
ofupdated marijuana prevalence, ;frequency, -and dosage data:,-The percentage of
change reflects the 'midpoints of the quantity ranges.
Marijuana-related hospital emergencies decreased 9 percent from
1983 (see Figure 3). This decrease occurred for all age categories
over 25, with the largest percentage decrease among persons age
35 and older. The percentage decrease was greatest for black
females. The use of marijuana alone declined, but the use of mari-
juana in combination with other drugs increased. Alcohol, PCP, co-
caine, and diazepam were the primary drugs used with marijuana
in 1984. Increases were reported in Philadelphia, Chicago,
Washington, D.C., and New Orleans; use also remained widespread
in New York City and Los Angeles.
11
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Figure 3
Marijuana Use and Trafficking Indicators,
1981-1984
Hospital~Emergencies
Reported through the,
DAWN System ~~
Marihuana Wholesale
ON I
Domestic Smsemilla lb ~O
Domestic Commercial/Ib
Colombian Commercial/lbe
Jamaicans Commercial/Ib
Mewcan~Commercial/Ib.
Marihuana Retail P~ricesd
$1,100 $10000 $1 000 $1,200-
$2,000 $2,000 $2,500;
$600 ~~~$350 $350$350
?~w~~~$600~ m $6.50 &$65'0
$600 $350 ?x$400$400
? $500~01 $600 ,$600
$500 $6001, $600$650P
$350 m$300 350 %,$350
`$,400~m $5500 $60.0
0r
Domestic ~nsemi oz~ ~~
pomestic~Commercial/o2
Colombian C mmercial/oz~
Jamaican Comrnerc~al/oz
Mexican C:omrnercial/oz~ ~a
$1000 $100 $ 00 $120$
N~ ~ x$125 $1.500 $1w
$48r1 x$40$40 $45
p $50 ?x,$65 A& $75
$45 0 x$450~~~?~ 0 45~ 00
$65mai5$75
$
all 1 4 ~ R"-$50 $60 11 $70
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Data represent the RA, Panel which includes only those da reported
by ?acilities on a consistent~basrs e* a 90 percent o more dunng ach year Data
representing the total DAWN~System ti~pro ided in~prevrous reports are no longer
used because of reporting fluctuations. Although the Consistent panel numbers are
.
lower because fewer~facii t es report~consistently they are a moore accurate indicators
of trends @f fospital emergenciesF for the years ?t 981 through 1983shave been revised
accordingly.
~
Source Pro/ec
13
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The U.S. marijuana situation continued to be characterized by diver-
sity, with both domestic and other foreign varieties competing with
the dominant Colombian supply. Marijuana was readily available
in all major metropolitan areas. More potent varieties of U.S.,
Jamaican, and Mexican marijuana were more widespread in terms
of both' distribution and consumption.
The average retail price for what is sold as Colombian marijuana
remained relatively unchanged, but retail prices for other commer-
cial grades of marijuana increased $5 to $10 per ounce, and the
price of domestic sinsemilla increased $20 to $30 per ounce.
Wholesale prices of all commercial varieties remained relatively un-
chang id in 1984.
In 1984, 1,760 metric tons of marijuana were seized from all types
of conveyances at U.S. ports of entry, along the United States/
Mexico border, and destined for the United States, compared to
1,620 metric tons in 1983. Most seizures were from non-commercial
vessels) (see Figure 4).
Figurej4
Marijuana Seizures from Various Smuggling
Conveyances, 1984
(percent of total volume)
Commercial Vessels: 3%
Commercial Air: 1%
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Developments In Source Countries
United States: Domestic marijuana accounted for approximately
12 percent of the total U.S. supply, dropping slightly from 1983.
Sinsemilla and high-potency cannabis continued to account for a
large percentage of the U.S. cannabis crop in 1984. Indoor grow-
ing facilities and smaller cultivated plots continued to be used. Local
trafficking organizations usually controlled the intrastate and interstate
distribution of their marijuana.
During 1984, 48 states actively participated in the Domestic Can-
nabis Eradication Program, destroying 3.8 million cultivated can-
nabis plants. As much as 1,700 metric tons may have been available
for distribution. An additional 9 million low-potency, fibre-type can-
nabis plants were destroyed, primarily in Indiana, Minnesota, and
Oklahoma. The greatest number of cultivated cannabis plants were
destroyed in Indiana, Hawaii, and Oklahoma. Arrests at cultivation
sites increased approximately 14 percent over 1983.
Reports of violence and booby-trap devices at cultivation sites in-
creased in 1984. In previous years, violence was confined primar-
ily to the west coast states of California, Oregon, and Washington.
In 1984, shootings, physical injuries, and assaults were reported in
11 southeastern states.
Colombia: Colombia remained the principal source of marijuana
for the United States and Canada. It accounted for 42 percent of
the U.S. supply in 1984 compared to 57 percent in 1983 (see Figure
5). This decrease was due to increased seizures and eradication.
There was also a concomitant increase in cultivation and trafficking
from other source countries.
Approximately 10,000 to 13,000 hectares of cannabis were
cultivated in Colombia in 1984, mostly in the northeastern part of
the country. There were also increased reports of cannabis cultiva-
tion in northern Colombia in the Gulf of Uraba region. Harvests oc-
curred primarily in the spring and fall, with the spring harvest pro-
ducing a relatively smaller crop. Occasionally, staggered planting
extended the fall production cycle from August to December.
An experimental aerial herbicidal eradication campaign was initiated
in Colombia in 1984. The Government of Colombia reported that
3,400 hectares were destroyed; additionally, a large number of
seedbeds were destroyed. An additional 3,300 metric tons were
seized, reducing the supply available from that country to 4,100 to
7,500 metric tons. %
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Figure 5
Estimated Sources of Marijuana Available for
Use in 1the United States,1982.1.+984
Country
1982 s e
-41
Colombia p
Jamaica
Mexico &xv
Domestic
Otk er
Percentage .Percentage
~of 'Total = of Total
Quantity Imports* ~' Supply" "
(metric tonslv.
7 000 a 8 00 r 67 57.
1, 750" ? 2 500 19 :` 16
750 6 as 62,000 0 ?15
a..rov~ 840 4 m8_ 6';
Total Auailabfe F 8;12,340 X14 090 100 1`00
`
-less: U S seizures
wseizures in transit? t
Net Marijuana
a ~ a
Availa~wg 8,'_7,00?10,200
S.upply baser Jdata indicate, that a l"rig rtz otmarijuana was available for ex-
port to~or rn the case of tlomesticatly producedd marrfuana for distribution within the
Unitedtates The supply estimates have been?ad~usted for mar~uana seizures in
the United States and rn international transit and lasso n transit. The lass factor, in
C1' marluana lost~because}of~abandoneb shipments gundistrrbutea stockpiles,
m,inetftcientthandlin , etC g a ma
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Colombia
Jamaica,-,,
Mexico ,
Domestic*
Other
Total Available-0less: U.S. seizures,
seizures.xin transit `,
and losses;_ a'?
Net Marijuana
Available,,,
1'984
Colombian V$t
Mexico ~~
Jamaica#
Belize a g
Domestic
Other
ZRA
Total Available
U S?` seizures,
less:
seizures in transit
and losses ~~
6x900 T 9,300
66
57
1750
1`4
1=2
~1300
it
9i
go"
X2,000
g
?
A1a4
M
1O150
kl'8
4;100 ~ 7,50Q;~ 1 48
2q; 500 3000 24
1500225O:W~N 16
Nwn
~ i1,100 ~ 8
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While use of marijuana and 'bazuco'* continued in Colombia, in-
ternal consumption had little impact on the amount available for ex-
port. Trafficking by maritime vessel continued to be the preferred
smuggling method, and marijuana was sometimes concealed in
cargo containers. General aviation aircraft continued to be a secon-
dary form of transport to the United States. Both maritime and air
activity tended to be concentrated on Colombia's north coast, but
Colombia's Pacific coast was used on occasion.
Mexico: The supply of Mexican marijuana to the United States in-
creased in 1984, as Mexico became the second largest foreign sup-
plier. Net production available for export after removals increased
from 1,300 metric tons in 1983 to between 2,500 and 3,000 metric
tons in 1984, due in part to the use of sophisticated agricultural prac-
tices. Such techniques included landscaping, fertilization, mecha-
nized cultivation, and the use of irrigation systems to support cultiva-
tion in remote arid regions. These sophisticated methods were en-
countered in November 1984 in Chihuahua, the location of the
largest single marijuana seizure in the world. An estimated 2,400
metric tons of net marketable marijuana were seized, along with five
large-scale cultivation sites and eight associated processing camps.
Some highly organized Mexican trafficking groups had apparently
combined their manpower and financial resources, probably to
achieve a more efficient operation by sharing operating costs and
risks.
Land transport was still the primary method of shipment to the United
States. The wide assortment of airstrips on both sides of the border,
however, suggests that substantial quantities may have been
smuggled via general aviation aircraft.
Jamaica: Jamaica was the source of approximately 14 percent of
the U.S. marijuana supply in 1984. Over 3,000 hectares of cannabis
were cultivated, producing between 2,000 and 3,000 metric tons
of cannabis before removals.
Three cannabis derivatives continued to be available for export from
Jamaica: sinsemilla, commercial grade marijuana, and hashish oil.
Although hashish oil is available for export in relatively small quan-
tities, Jamaica remains the only significant source in this hemisphere
and most is supplied to Canada; limited amounts are consumed
locally. Sinsemilla production increased in 1984, but still accounted
for only, an estimated 5 to 10 percent of the total crop. The highest
quality sinsemilla was grown along Jamaica's west coast. Commer-
cial grade cannabis is cultivated throughout the island. Two can-
*The smoking of cocaine base or coca paste with marijuana or tobacco.
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nabis crops are planted each year, in January and June, and peak
harvesting occurs in May and October; Jamaica's climate, however,
allows some cultivation and harvesting year-round.
Local consumption, loss, conversion of cannabis to hashish oil,
eradication, and seizures accounted for approximately 25 percent
of Jamaica's gross production, leaving 1,500 to 2,250 metric tons
of marijuana available for export in 1984. A large amount of mari-
juana was smuggled to the United States via general aviation air-
craft from any of the approximately 73 airstrips, about half of which
are clandestine. Many of these aircraft airdropped their marijuana
to small pleasure craft in Bahamian and Florida waters. Occasionally
multi-ton quantities were also transported via small motherships,*
and to a lesser extent via pleasure craft and cruise ships. Jamaica
was also the source for many small seizures from air passengers
and commercial maritime cargo (including containerized cargo)
shipments in the United States.
Belize: Belize became an increasingly significant marijuana source
in 1984. Gross annual production was approximately 1,300 metric
tons. An estimated 1,100 metric tons were available for export to
the United States after seizures, local consumption, limited manual
eradication, and shipment to other countries, about a 145 percent
increase over the 450 metric tons available in 1983. Although net
marijuana production increased, cannabis cultivation remained
relatively unchanged at approximately 1,200 hectares. This was
largely because the aerial herbicidal eradication campaign which,
was conducted in 1983 was not resumed in 1984.
Processed marijuana was generally exported to the United States
via twin-engine aircraft from about 52 largely uncontrolled airstrips
located throughout the country. Smuggling to the United States by
pleasure craft and land transport was limited.
Other Countries: Other countries supplied approximately 4 per-
cent of the marijuana available in the United States in 1984. In-
donesia and Nigeria supplied limited amounts. Nigeria enacted
legislation during 1984 designating drug smuggling as a capital of-
fense; penalties for marijuana violations were also increased. Costa
Rica, Panama, and Venezuela made a concerted effort to control
production through manual eradication and increased investigative
efforts. While Brazil continued to produce significant quantities of
marijuana, most production was consumed locally. Brazil destroyed
over 2,600 metric tons of marijuana by September 1984, nearly trip-
ling 1983 eradication totals. Thailand continued to produce a signifi-
19 -
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cant amount of marijuana for users in Southeast Asia and for ex-
port. Thai marijuana, which has a relatively high THC content* and
is expensive, was smuggled to the United States in increasing
quantities.
Cannabis was cultivated in 12 of the 17 provinces in northeastern
Thailand. Cannabis cultivation, which is financed to some extent by
Thai and foreign syndicates involved in international smuggling ven-
tures, increased substantially. To control production, the Royal Thai
Government initiated a large-scale eradication campaign in 1984
and destroyed 3,000 metric tons of marijuana.
Hashish Production and Trafficking: Hashish production
throughout the world changed little in 1984. Lebanon, Pakistan, and
Afghanistan continued to produce the bulk of North America's
supply Morocco remained an important source country, but most
of its production was consumed internally or shipped to Europe.
Nepal and India continued to produce small amounts primarily for
local consumption (see Figure 6).
Figure 6
Hashish Production In ;Ma~orSource Areas g 1984
e anon
/ fghanistan
Pakistani`
Morocco~a~~n
The sources of supply to the United States changed little in 1984.
Although political and military disruptions in Lebanon continued to
affect the movement of hashish out of the Bekaa Valley, the primary
production area (see Figure 7), the level of exportation did not ap-
pear to change. In addition, the opening of the Lebanon/Israel
borderI during the Israeli military presence in Lebanon inadvertently
facilitated hashish trafficking into Israel. Traffickers also transshipped
Lebanese hashish to Egypt through Israel.
*THC (delta-9 tetrahydrocannabinol) is the principal psychoactive ingredient in
cannabis.
20 -
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Figure 7
Probable Sources of Hashish Available in the
United States, 1984
(percent of total)
Based on reports of increased hashish trafficking activity, it appears
likely that hashish importation during 1984 exceeded the 150 metric
tons reported in 1983. Much of the seized hashish in the United
States, moreover, was destined for Canada which has a greater
hashish problem.
Figure 8
CHashish Seizures from Various Smuggling
Conveyances, 1994
(percent of total volume)
Hashish trafficking patterns to North America may be changing
slightly. To avoid increased interdiction activity in the Mediterranean
Sea, some traffickers used alternative routes in 1984. For instance,
a number of multi-hundred kilogram shipments which were seized
during late 1984 had been routed from Pakistan or India through
Southeast Asia and the Pacific Ocean to the U.S. west coast; both
air freight and maritime transport were utilized. The hashish was
allegedly destined for west coast traffickers as well as for traffickers
in Canada and the Northeastern United States (see Figure 8).
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Availability and Use in the United States
The availability and use of cocaine hydrochloride (HCI) remained
widespread in 1984. Use continued to include all socio-economic
levels. According to the NIDA 1984 Annual Survey of High School
Seniors, cocaine use among that group during the last 30 days rose
from 4.9 percent in 1983 to 5.8 percent in 1984.
There was a significant increase in the adverse health consequences
of cocaine use for all age groups. Cocaine-related hospital emergen-
cies increased 51 percent over 1983 (see Figure 9). The largest
growth in cocaine-related hospital emergencies occurred among
black males. As in the past several years, some of this increase was
attributable to more dangerous forms of use, such as 'freebasing,'
injection, and combining cocaine with other drugs.
The intravenous use of heroin/cocaine combinations known as
'speedballs' continued to expand within the narcotic addict popula-
tion. The number of hospital emergencies resulting from 'speedballs'
rose 37 percent. Increased use of 'speedballs' continued to be
reported in Miami, Baltimore, New Orleans, New York City,
Philadelphia, Chicago, and Washington, D.C. San Francisco sur-
passed Los Angeles in 1984 in the number of hospital emergen-
cies associated with this combination.
During the year, there were at least 617 cocaine-related deaths, over
one-third of which resulted from homicides. Among those who died
from drug ingestion, 59 percent died from taking multiple drugs and
41 percent.from taking cocaine alone. Total deaths increased 77
percent over the previous year. One study of cocaine use shows
that daily users who snort or inject the drug consume approximately
five grams per week; cocaine 'freebasers' consume over nine grams
per week. Emergency room admissions resulting from the use of
cocaine in combination with alcohol, heroin, and PCP have been
increasing since 1982.
The smoking of coca paste and cocaine base was reported during
1984 in Miami, New York City, and Los Angeles. These drug forms
are attractive to the trafficker because of the elimination of the refin-
ing process, including the use of ether and other dangerous
chemicals required for processing cocaine HCI. Users were attracted
to these drug forms because of the convenience and relative low
cost.
Production-based data indicate that 71 to 137 metric tons of cocaine
HCI were available for export to the United States in 1984 (see Figure
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Figure9
Cocaine Useand Trafficking Indicators, 1981 1984;
a ,~ '1981" a 1,982 1"983 ,.,, 1984
Hospitals Emerge"
ties Reported
Throughthe
DAWNt~System
Cocaine-Related
Deaths" * Less
NewYork City}
Cocaine Retail
Puri/a:
,(thousands}.$,55 a~$65~$55 ~$65$45:~a~ $55,;; x$40 a? $5Q
LaborattoriesrSei
7,(U.S.) ,
no;longerd
3 have#been revised
10). Consumption-based data indicate that between 55 and 76
metric tons were consumed in the United States in 1984 (see Figure
11). * The production-based estimate continues to reflect uncertainty
regarding the amount of coca cultivation in Bolivia and Peru.
The consumption and supply estimates, which are based on independent data
bases and methodologies, serve to corroborate each other. Consumption and supply
may fall at any point within their respective ranges for a given year.
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Estimate of Illicit #Cocaine HCI Available for Export
to the Unrted States 1'982 1984
Figure 10 ~"
metric Eons Wr_..
Maximum illici cocaine HC.I
which could'be produced
from availablecocaleaf
Less cocaine-expo e t to
other countries" (Europe
Asia, Canada and Latin
=America ~ 4 ~ . p~~
Subtotal
Subtotals'
Less amount seized
507575 921101176
may become delayed orstockpled
ists from field to~ultimate consumer
Hof cocaine not convertedm ...
m _,
91982'
m. 1 b983
; .1984
V15-140
227 n
1352, `ik
Els
A07,115,
*80r-, 90
65. 90
X95 112. ,
130-206
u rately coca ne not converted includes '
rtum produc ive capacitygana consump=2;
country~consumption crop/leaf spoilage,
sing sand what might be described asthe
removals which ,,take placebe wen ,
lion Included are such factors as soy
ier s
disease; parasites rneffic~encres of pr
Deaf paste base) i d cocaine HC(~ hich.
extensive rnultr stage?pipeline .which ex
Price/Purity Trends
By early 1984, cocaine was so plentiful that there were substantial
wholesale price reductions in many U.S. cities. In the spring of 1984,
kilogram prices were as low as $16,000 in south Florida and $30,000
in New York City. By the end of the year, however, kilogram prices
had risen to between $33,000 and $38,000 in Miami, and between
25
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Figure
Cocaine H(1 Consumption in the United States'
1.9811984 ~~~a a~~~sffPo EPo o? a a ,r .ai
1981 19~82~~~~~1983~~ 198,4
(1a change) (% change) s g(% change)
3360 4e5 62(+15)a 5068(+10) 55.76(+141)
be consister t wrth,the 1984 methodology. Drugvprevalence data from't e NIDANNa
tron llSurveys an Drug Abuse~fo 1 9~and ~ 1982~were used fo determine the c^o,?
7982 and werre combne`d wrth ava lab~e ntv mat on from er sours stas an n
icatror ofpopulatron trends from, 981 to 1984 Since'thrs produces a conservative
estimate, a second estimate which rs believed to be exaggerated was computed''
for eac year based on consumpton rates of treatment clients The two estimatesa
were us 'to
determine a tinge which was~then narrowed based on supply estimates.
-31
actual consumption is believed Eto bey near~the midpoints. These estmatesrare. sub-
$40,000 and $45,000 in New York City. The national average price
of a kilogram of cocaine was $40,000 to $50,000 compared to the
$45,000 to $55,000 range reported for 1983. Average wholesale
purity continued at 1983 levels, around 90 percent.
In contrast, retail prices in most metropolitan areas remained
relatively constant. Most cities continued to report gram quantities
selling for $100 or more, but a few cities, such as Miami and New
York, reported gram quantities selling for less. Average retail purities
of gram quantities continued at 1983 levels, around 35 percent.
Trafficking Trends
The wholesale traffic continued to be dominated by Colombian
organizations in 1984, although traffickers of Cuban (resident aliens)
and other nationalities have become more prominent, particularly
in southern California, south Texas, and New York. At the lower level
of the wholesale and retail distribution network, the ethnic composi-
tion of traffickers remained mixed, although the number of black
traffickers has increased as has the degree of organization in their
operations.
M 26
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Not all the cocaine that is smuggled into the United States arrives
as processed cocaine HCI. Because the chemicals used to convert
cocaine base into cocaine HCI can be obtained in the United States,
some areas of the country, especially south Florida, have experi-
enced increased cocaine conversion laboratory activity. The cocaine
laboratories seized in the United States in 1984 varied in size and
sophistication. Based on the chemicals found at nine laboratory sites,
the production capabilities ranged from less than two kilograms to
around 500 kilograms of cocaine HCI. During 1984, 18 of the 21
cocaine conversion laboratory seizures nationwide occurred in south
Florida. The number of cocaine conversion laboratories seized in
the United States has risen steadily, from three in 1980 to a total
of 21 in 1984, a sevenfold increase; moreover, 1984 seizures were
almost double the number seized in 1983.
Developments in Foreign Countries
The most significant factor impacting on the international cocaine
traffic during 1984 was the expansion of all phases of the traffic in-
cluding cultivation, processing, and distribution. Not only was illicit
coca cultivation expanding in the source countries of Peru, Bolivia,
and Colombia, but it was spreading into other countries, such as
Ecuador and Brazil. As illicit coca cultivation increased, cocaine
refineries and transshipment centers continued to emerge
throughout the hemisphere. Overall expansion of coca cultivation
and cocaine traffic was partly the result of intensified law enforce-
ment activity in Colombia during 1984.
Peru continued to be the major site of coca cultivation in 1984.
Although some coca cultivation in Peru is licensed, production ex-
ceeded the amounts needed for licensed purposes; at least 75 per-
cent of the total crop ultimately entered the international traffic as
cocaine HCI. As in the past, most of this production was exported
in the form of coca paste or cocaine base to Colombia for process-
ing into cocaine HCI before distribution to the United States. Dur-
ing 1984, small quantities of coca paste continued to be smuggled
into Brazil for refinement into cocaine HCI. Evaluation of coca cultiva-
tion trends in Peru is difficult because most cultivation is in remote
areas. A particularly troublesome deficiency in production estimates
in Peru is that, while coca is also grown in Peru's south-central and
northwestern departments, most surveys to date have concentrated
on Huanuco Department in the Upper Huallaga Valley in central
Peru. Available data, however, suggest that 50,000 to 70,000 hec-
tares were under cultivation in 1984 (see Figure 12).
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Figure X12
Estimated Cocaine HC1Production kb r Country
(used on cacti
ffi
Gross 'Goca
Cultivation (hectares) ~~
50 000 r~ 3 000
X15X000 ~
1000 ~k~
Lim e
~ ~
70,000 45:000
~~ 157 000
~~ ~
~ , ~(.
Estimated Coca
~ ~ ~~
~W~G~~t
Leaf Yield* ~~
~~
0
5,000 ~~42 000
12,000
(metric,tons)? a
70,000 ~~ 163',000
i`4 000;
M aximum Co ,
carne h~Ch
Capac~tys(metr c
tons * *~* ~~
ry lea" yield conversion~factors have been revrsed baseds01
egranal var~aU?t~s~rn yreld per hectare The taetors~used~
'er~~`and aECUador~w _ m~raraP~hectara~malric,nna=C'i)+rnai'rr~t
Coca cultivation is legal in Bolivia, which continued to be the sec-
ond major source with an estimated 30,000 to 45,000 hectares under
cultivation in 1984. Much of the coca grown in the Yungas area was
believed to have been consumed locally, but overall 80 percent of
Bolivia's coca was refined into products for illicit sale elsewhere. As
in Perul, estimates of coca cultivation are speculative because the
two current surveys of Bolivia's principal growing areas differed
greatly' The Chapare and Yungas continued to be the main areas
of cultivation. Local consumption appears to have had little, if any,
influence on production, refining, and trafficking.
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Coca cultivation is illegal in Colombia. Although the size of Colom-
bia's crop, estimated at 15,000 to 17,000 hectares, was static over
the last few years, cultivation was reported more widely throughout
the country in 1984. Most concentrations of coca were located in
Colombia's southern and eastern departments in the Llanos and
Amazon regions. Coca leaves cultivated in Bolivia and Peru have
a higher alkaloid content than the Colombian variety, and therefore
approximately 85 percent of the cocaine base refined in Colombia
is smuggled from Bolivia and Peru.
In 1984, for the first time, significant coca cultivation was confirmed
in Ecuador, where an estimated 1,000 hectares were under cultiva-
tion. While this is not considered large-scale by Peruvian or Boliv-
ian standards, there were mature, well-tended fields, some with
bushes the size of small trees. The bulk of the country's cocaine
and other coca derivative production was probably shipped to
Colombia.
In Brazil, eradication campaigns in 1984 confirmed coca cultivation
in the Amazon region. Apparently Colombian traffickers have been
supporting coca cultivation in this area for three years. The variety
of coca cultivated in the Amazon region is called 'epadu.' It
resembles bamboo, grows in tropical forests, and can attain a height
of 10 to 15 feet. The alkaloid content of the 'epadu' coca leaf is con-
siderably less than that of the Andean variety grown in Peru and
Bolivia.
In 1984, some small coca plots were reportedly destroyed in
Panama near the Panama/Colombia border. There were also un-
confirmed reports of coca cultivation in Venezuela.
Consumption
Latin America: Coca use has a long history in Peru. Approximately
25 percent of the coca leaf harvested is believed to be for chewing
and medicinal use. There are an estimated three million coca leaf
chewers in Peru. Accompanying the expansion of coca cultivation,
however, has been an increase in the smoking of coca paste and
cocaine base during the last several years. Domestic paste and base
consumption has increased rapidly and is estimated by Peruvian
officials to be around one-half metric ton annually. There are an
estimated 156,000 users of refined coca products and an estimated
84,000 users of cocaine HCI in Peru, and domestic refining and con-
sumption of cocaine HCI appeared to increase in 1984. Illicit refined
drug consumption is largely concentrated in metropolitan Lima, but
use in other cities and rural areas also increased during 1984.
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Coca paste and cocaine base smoking has spread from Peru to
Bolivia, Colombia, and Ecuador. In 1984, there were unconfirmed
reports of coca paste and cocaine base smoking in Venezuela and
Paraguay, as well as elsewhere in the hemisphere.
A few years ago the use of substances other than coca leaf was
rare in Bolivia. Domestic annual legal consumption of coca leaf is
estimated at 15,000 to 16,000 metric tons, primarily through chew-
ing or incorporation into tea or locally prepared medicines. In 1984,
illegal consumption of coca products gained momentum. There may
have been as many as 40,000 to 50,000 habitual users of the leading
drug, 'pitillo,' a cigarette made of tobacco and coca paste. Domestic
use still accounts for minor quantities of coca products compared
to those' which are exported from Bolivia.
Domestic coca is consumed within Colombia, primarily through coca
paste and cocaine base smoking. The use of 'bazuco' continued
to be a serious problem in Colombia during 1984. It is similar to
'pitillo,' but consists of cocaine base or coca paste most commonly
mixed with tobacco and occasionally mixed with marijuana. Over-
production of coca in source countries has been responsible for the
increase in 'bazuco' use in recent years. Consultations at drug
counseling centers for 'bazuco' problems rose from 25 percent of
all cases in 1981 to 57 percent in 1983, a trend which continued
in 1984. The problem is most serious among Colombian youth, and
the Ministry of Health estimates that over 600,000 persons under
age 18 regularly smoke 'bazuco.'
Western Europe: Cocaine availability and use in Europe increased
in 1984: Although cocaine seizures were down slightly from 1983,
they continued at high levels, totaling approximately 840 kilograms.
Cocaine use, once confined to the more affluent, is now affecting
all levels of society. Virtually all European countries reported some
cocaine use, but the most serious problems were reported by The
Netherlands, the United Kingdom, Italy, and the Federal Republic
of Germany (FRG).
Laboratories/Refineries
Colombia remained the principal cocaine HCI processing and
distribution center for the United States and Canada in 1984. Co-
lombian traffickers, however, experienced a number of setbacks
throughout the year which, combined, caused some disruption in
the traffic and slightly weakened their position vis-a-vis other com-
petitors. Beginning in March 1984 with the seizure and destruction
of a major processing complex in Caqueta Department and the loss
of 10 metric tons of cocaine products and 10,000 barrels of
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chemicals, Colombian traffickers quickly suffered other major losses
including two other large-scale processing complexes in other
departments in southern and eastern Colombia. Increased pressure
by the Special Anti Narcotics Unit of the Colombia National Police
and decreased availability of chemical supplies for cocaine conver-
sion continued to force some traffickers to establish their cocaine
processing operations outside of Colombia. Although they attempted
to protect their operations by moving to adjacent border areas, Co-
lombian traffickers lost other major laboratories in Panama and in
Venezuela as well as thousands of barrels of essential chemicals.
Drug-related violence and a growing drug use problem in the coun-
try have created a greater government awareness of the danger
to society caused by drug trafficking, which led to extradition of four
Colombian nationals to the United States in early January 1985. The
threat of extradition has been disruptive to traffickers, causing some
to remain mobile and in hiding.
Figure 13
Probable Sources of Cocaine Available in the
United States, 1984*
(percent of total)
* These percentages are general estimates because it is difficult to trace drugs to
their original source. Colombia may have been the source for at least 75 percent;
the other countries may have been the sources for up to the percentages indicated.
Along with increased cultivation of coca leaf, the refining of coca
into coca paste, cocaine base, and cocaine HCI within Bolivia has
increased in recent years, affecting both international trafficking and
internal consumption patterns. In 1984, Bolivian traffickers estab-
lished cocaine HCI laboratories capable of producing 100-kilogram
quantities in the Santa Cruz and Beni regions. Law enforcement ac-
tivity in Colombia in 1984 made Bolivian traffickers more reluctant
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to continue to supply large quantities of coca paste and cocaine
base to,Colombian traffickers. Essential chemicals were smuggled
from Brazil and other producing nations through Argentina and
Paraguay. In addition, some Bolivian coca products went to north-
ern Argentina and Brazil for conversion to cocaine HCI destined for
Europe, and the United States.
Cocaine conversion activity was noted elsewhere in the hemisphere
during 1984. Increased coca cultivation in Peru resulted in increased
domestic refining, but not to the extent as in Bolivia. A combination
of cocaeradication programs and increased seizures of cocaine HCI
in Brazil in 1984 revealed that the cocaine trafficking community has
gained a firm foothold at all echelons of production from cultivation,
through processing, to international distribution. While no major
laboratory seizures were reported in Brazil, the country's ether in-
dustry along with extensive commercial air routes to Europe make
the development of cocaine processing facilities there feasible.
Drug Smuggling/Trafficking Patterns
i
United States: Cocaine smuggling to the United States continued
to be dominated by Colombian organizations. Florida was the prin-
cipal point of entry and the location of 94 percent of the cocaine
seizures, from all conveyances in 1984. Significant quantities also
were seized in Texas and Arizona. The majority of the cocaine
reaching the United States in 1984 was shipped by general avia-
tion and. commercial aircraft. The seizure of quantities of cocaine
rangin, from 330 to 1,100 kilograms from maritime vessels in
Jamaican, Haitian, and Honduran waters clearly demonstrates that
significant volumes also were smuggled by sea. There was con-
siderable diversification of transportation modes in 1984 (see Figure
14).
Additionally, the seizure of three cocaine HCI laboratories in Mex-.
ico, one laboratory in Canada, major complexes in Panama and
Venezuela, and 21 laboratories in the United States is indicative of
increased smuggling of cocaine base to the United States and other
countries where essential chemicals are more readily available. In
July 1984, more than one metric ton of cocaine base was seized
from a single air cargo shipment to south Florida.
Western Europe: Cocaine from Peru, Bolivia, and Colombia is
smuggled to Western Europe, frequently through cities in other South
American countries. Almost all Western European countries were
used as'transit points. The largest seizures of cocaine were in the
FRG, Spain, Belgium, France, and The Netherlands, each report-
ing totals of over 50 kilograms by yearend. Commercial air couriers
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Figure 14
Cocaine Seizures from Various Smuggling
Conveyances, 1984
(percent of total volume)
Commercial
Vessels: ??,
Land
IiSIS1M1([.]i)LAii
General Aviation
Aircraft: 62%
were the most commonly used means of smuggling small quantities,
while commercial aircraft and vessels were used to transport large
quantities. In November 1984, Dutch officials seized cocaine base
at the Port of Amsterdam from a freighter originating in Cartagena,
Colombia, which is significant because cocaine conversion facilities
have been encountered in Europe only in the last five years.
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Drug Control Efforts
Peru: The Government of Peru (GOP) continued to make progress
in implementing coca and drug control programs in 1984. Although
eradication and interdiction efforts suffered because of violence in
the Upper Huallaga Valley, more than 3,100 hectares of illicit coca
cultivation were destroyed, a significant increase over the 700 hec-
tares destroyed during an eight-month period in 1983. This was the
largest amount of coca that has been eradicated in any country to
date. The Upper Huallaga Valley was declared an emergency zone
in July, land the Army restricted the narcotics control efforts of the
Guardia Civil's mobile narcotics police unit while directing all its ef-
forts against insurgents. By yearend, the GOP committed to resume
the interdiction and other drug control activities of the 300-man unit.
Coca eradication in the Upper Huallaga Valley continued until mid-
November, when efforts were temporarily suspended after the
murders of 19 field workers. Seizures of coca paste in Peru ex-
ceeded 3 metric tons in 1984.
Bolivia : The government did not sustain effective narcotics control
programs in 1984. A U.S.-supported special narcotics police strike
force was deployed in August to reestablish government control in
the Chapare region, but was withdrawn several weeks later. A
special law enforcement unit to investigate and prosecute major nar-
cotics traffickers was deployed in the Beni in late summer and fall.
Although it seized a number of ranches, laboratories, and small
planes; it was not successful in arresting and prosecuting major traf-
fickers: Seizures of coca paste, cocaine base, and cocaine HCI in
Bolivia'totalled approximately 2 metric tons. Organizations formed
to carry out eradication programs and control sales of legitimate coca
were largely ineffective. Control of legitimate coca production re-
mained in the planning stage.
Colombia: The United States and Colombia are working together
to develop an environmentally safe herbicide which will be effec-
tive in Colombia. A parallel objective of stepping up interdiction of
drug shipments and the destruction of coca processing sites was
realized'; in 1984. Following a strategy of deploying alternately for
interdiction and eradication operations, the Special Anti Narcotics
Unit organized periodic raids against coca processing sites. In 1984,
Colombian authorities seized 16 metric tons of cocaine base and
cocaine,, HCl, compared to 2.5 metric tons in 1983.
Ecuador: Two coca eradication operations were mounted by the
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Ecuadorian national police after the new administration took office
in August and approximately 100 hectares were destroyed. An ex-
pansion of eradication efforts in 1985 with U.S. Government fund-
ing is anticipated. 0
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01,
rg "~ -, ugh '.'k ,,r x 7` ~ .:p"/ :~~..~* . -"fi t?'" ~~,:."" d -. a .,m .tea, < .
Chapten i.?.?
'Chap
hree
1 Ll
WI ///Ij
IIIIIIIIIIIIIII', i~' . ..
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The term 'dangerous drugs' refers to a category of substances, both
licit and illicit, which include the following: stimulants other than co-
caine; narcotics/analgesics other than heroin and opium; psycho-
mimetics/hallucinogens other than cannabis products; and all
depressants and sedatives.
During 1984, the trafficking and use of controlled stimulants,
sedative-hypnotics, hallucinogens, and narcotic analgesic heroin
substitutes and supplements were generally similar to those reported
for 1983 (see Figure 15).
Total dangerous drugs consumption during 1984 was estimated at
over three billion dosage units, a 15 percent increase over 1983
(see Figure 16). This was largely a result of the increased use of
methamphetamine and PCP.
In 1984, clandestine laboratories continued to produce a large pro-
portion of the illicit dangerous drugs supply. It is estimated that all
of the PCP, almost all of the methamphetamine, and approximately
80 percent of injectable amphetamine available illicitly in the United
States were produced in clandestine laboratories operating in this
country. During 1984, a total of 312 domestic clandestine laboratory
'seizures were reported, of which DEA participated in 209. The
number of laboratory seizures in 1984 increased 38 percent over
1983. Methamphetamine, amphetamine, and PCP accounted-for
82 percent of all clandestine laboratory seizures in 1984, about the
same as in 1983. Cocaine processing laboratory seizures, discussed
in Chapter Two, almost doubled (see Figure 17).
Methamphetamine: The illicit manufacture, trafficking, and use
of methamphetamine increased during 1984. This increase was most
evident in the central Texas and Philadelphia, Pennsylvania areas.
San Francisco also experienced serious methamphetamine use
problems in 1984. Clandestine laboratories remained the principal
source of methamphetamine in 1984, and outlaw motorcycle gangs
were a major factor in methamphetamine manufacture and traffick-
ing. Methamphetamine-related hospital emergencies and deaths
each increased 20 percent over 1983 levels (see Figure 15).
Amphetamine: In contrast to methamphetamine, there was a
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Figure 15
Selected Dangerous
Drugs Use and% Trafficking
1
Ind cators, 1981. 19p84
1981 ~ 1982 g 1983 ~`
Methaq pheta)rne 1 697 r 1 7 5~ m1 6.1
Metha uatone ~.m~ ' ? 362a~~ x2,764 a~
Hospital Emergencies E
Reported through DAWN
System " mf
Amphetamine/
D Amphetamine (oral@
=LSDeg ~~
Jrug Related Deaths
Amptetamine u
~,~aD Anphetam~net,
(injectable)
Methamphetairnne
MethaquaioneMelt,
LSD
Prices
Wholesale " _.
Amphetamine/'e1
D Amphetamine (tl u )
Methamphetamine (oz) k $900 $1400
Mettaqualone t(d u) 4 na$l 50 ?m $2 00
Retail `~
Amphetamine
t D=Amphetam
(gmro)?
Methaquato
{5% pure}a ~ a ~ $1 Q 00 $12 00 $10 00 $15 00 $1O OQ $15 00 $10.00 $1,5.00 g, g
~s $1.50 $150a ~i$150.,
$1:400 $1 800 $1 000$2 000 $1 100 $2 000`
741
$2 00 $2 50 $2 00 $2 60 $1 75 $ 50-"
0$900 $1,200' =$1,20?.
1A 9
$1.50 $1.50 < $ 50
(counterfeit)-(d u )< $3 7 $4' 00~ $3 0 ~$5r00 $3.00- $5 00 $3 00 :?$5 00
for medical examinee po ?iss o smallcompar d o he total DAWNS t ha
rt rs not a valid e d indr cator DAWN med+c l examiner datarare not subject to the
samereporhnd inconsistencies as DAWN emergency room data. Medical examiner;;
accordinglyt
~.ffData represent the DAWN Consistent Panel which rrtcludes only those data reported
by ffacrlrtres~on a: consistent basis' )`ems at 90 percentror morebduring each year Data
representr the totalrDAWN System prov~ded, in prevrous2reports dare no longer
fused bec usetof reportrrtg ffuctuatr s Alts ough tl e Consistent numbers are
lower~because fewer facilities report consistently they are a more accurate indicator
of trends Hospital emergencies fa, r"the years 1981 through 1983,have,been,r'e`vlsed
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decrease in the availability and use of oral dosage forms of am-
phetamine in 1984, a continuation of a trend since 1981. The oral
dosage amphetamine supply has historically been dependent upon
diversion from legitimate distribution channels. In 1984, the amount
of amphetamine which the U.S. Government permitted to be
manufactured legitimately was decreased, which probably ac-
counted for the lowered incidence of oral amphetamine use during
the year. The decline is reflected in a 25 percent decrease in
amphetamine-related hospital emergencies since 1981 (see Figure
15). In contrast, there was an increase in the incidence of
amphetamine-related deaths reported for the second straight year.
Almost all such deaths resulted from intravenous use.
After 1981, most oral dosage forms of amphetamine used illicitly,
and other stimulants, phentermine (lonamin), and fenthylline (Cap-
tagon), were smuggled into the United States from Mexican sources.
`Look-Alikes': The term 'look-alikes' refers to capsules or tablets
containing non-controlled ingredients and manufactured to closely
resemble controlled substances. Although still considered a problem
in some states, the overall availability and use of these stimulant
drugs continued to decline during 1984. 'Look-alikes' are now limited
by federal regulation to contain only one active ingredient, such as
caffeine, rather than a potentially synergistic and dangerous com-
bination of ingredients. Legislation enacted in 47 states further re-
quires that 'look-alikes' no longer physically resemble controlled
substances. 'Look-alikes' continued to be sold through the mail as
Dangerous Drugs Consumption ~n the United
States 198~11~9846~~~~~~~(dosage units)m~ ~~~5~ ~.~ @~~. s4~~g
1982
ctane) ~(?!o Gctange)~ ~~ (?!o change
formedran integral past of the ~i982drugconsumptronest~rnates inee therewere~
no surveys in 1983~and 1984 the estimates were developed using a riationally
representative samplereot cons seer tly reporting liosp taiemergency rooms Quantity
is rounded~to tf e nearest i0 million dosage units.
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Figure?17
Clandestine Laboratory Seizures in the United
States 1x981 1984 ~a m ~
~~
1981
1982
E
Methamphetamine ~
89
~133
~~119~
Amphetamine
Methaqualone ~
114 ~
13
18
7
25
10
Cocaine
5 )
6~
a~
Others Drugs
X27 ~
~
i~p
185
a~~ ~ 4
M
21
Total< , a ~ a~ M 183 225 "m . _ , ~ 226 .312
stimulants, diet aids, and decongestants to people who desired the
mild stimulant effects of these caffeine-, ephedrine-, or phenylpro-
panolamine-containing products. The excessive use of any of these
drugs alone or in combination, however, may still pose health
hazards, to users.
i
Depressants
Methaqualone: The availability and use of methaqualone con-
tinued to decline during 1984 due to worldwide shortages of bulk
methaqualone powder in international commerce, a consequence
of international controls which have been adopted by virtually all
major producing and exporting countries. Some foreign countries,
however, currently have large inventories of methaqualone powder
in stock. Additionally in 1984, the U.S. Government placed metha-
qualone' in Schedule I of the Controlled Substances Act. This action
legally precludes the manufacture, distribution, or possession of
methaqualone in the United States and its territories except for
research purposes. Methaqualone-related hospital emergencies and
deaths decreased 45 and 78 percent, respectively, from 1983 levels
(see Figure 15). Miami and New York City experienced the most
serious methaqualone use problems in 1984.
In 1984, the bulk of purported methaqualone tablets available in
the United States were counterfeit, generally containing an alternative
depressant or sedative-hypnotic such as diazepam, phenobarbital,
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secobarbital, or diphenhydramine. Diazepam remained the primary
active ingredient in counterfeit methaqualone tablets smuggled into
the United States from Canada; tablets smuggled from Mexico con-
tained secobarbital.
Clandestine methaqualone laboratories in the United States con-
tinued to be a significant factor in the availability of the drug. Dur-
ing 1984, the focus of illicit trafficking activities remained in south
Florida. Available intelligence suggests that counterfeit Quaaludes
are reputed by users to be of generally poor quality and consistency.
The retail price per dosage unit of genuine methaqualone ($4 to
$15) continued to be significantly higher than that for the counterfeit
product ($3 to $5), as in 1983.
Diazepam: Diazepam was available and used as a street
depressant during 1984, as it has been for many years. Generally,
the drug was used in combination with other psycho-active
substances. As in the past, most diazepam available illicitly was
diverted from domestic licit channels, but there continue to be reports
of significant diversion and smuggling of the product from Canada,
Mexico, and Colombia. There was a 10 percent decrease in hospital
emergencies and deaths in 1984.
Hallucinogens
PCP: PCP continued to dominate the illicit hallucinogen situa-
tion in the United States as it has for the past nine years. The entire
supply of PCP available to illicit users is produced in clandestine
laboratories and is distributed by small, locally-oriented groups and
outlaw motorcycle gangs. In 1984, PCP availability and use con-
tinued to expand significantly in specific cities, notably Los Angeles,
New York City, and Washington, D.C. Recent reporting has indicated
an increase in use in San Francisco and New Orleans. PCP-related
hospital emergencies increased 3 percent over 1983 levels (see
Figure 15).
Both the illicit manufacture and distribution of PCP were increas-
ingly dominated by black and Hispanic traffickers in 1984. The PCP-
using populations also consisted increasingly of black and Hispanic
youth. The major exception to this pattern was in the Queens sec-
tion of New York City and adjacent Long Island where PCP is heavily
used by white males between the ages of 15 and 25.
LSD: The availability and use of lysergic acid diethylamide
(LSD) appear to have decreased in 1984 following a brief period
of resurgence in the early 1980's. LSD-related hospital emergen-
cies decreased 9 percent from 1983 levels (see Figure 15). In addi-
tion, only one LSD-related death was reported through DAWN dur-
ing 1984. The principal cities experiencing serious LSD use prob-
lems in 1984 were New York, San Francisco, Chicago, and Los
Angeles. The most prevalent forms of LSD in 1984 remained the
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low-potency 'microdots' and 'blotter paper,' tested at 15 to 60
micrograms per dosage unit. By comparison, the tablet forms of LSD
trafficked during the late 1960's typically averaged 100 to 200
micrograms in potency.
MDA: The availability and use of MDA remained unchanged
from 1983. Although MDA has pharmacological properties of am-
phetamine, it is classified as a hallucinogen because of its effect on
users. Three MDA laboratories were seized in 1984, compared with
five in 1983. The clandestine manufacture of MDA was concentrated
in Atlanta and on the west coast.
Narcotics/Analgesics and Heroin Substitutes/
Supplements
Pharmaceutical products containing narcotics continued to be a
significant part of the illicit drug traffic during 1984. These products
were used alone or in combination, both as substitutes for and sup-
plements to heroin, and were primary drugs of choice for a substan-
tial portion of the narcotics addict population in the United States
(see Figure 18).
Codeine/Glutethimide combinations ('fours and doors'), hydromor-
phone;(Dilaudid), and oxycodone (Percodan) continued to be used
in significant quantities. Many users of these narcotics and heroin
substitutes preferred these combinations as drugs of choice. The
trafficking and use of Talwin (pentazocine) in combination with triplen-
namine ('T's and Blues'), however, continued to decrease signifi-
cantly as a consequence of the reformulation of Talwin with the nar-
cotic antagonist, naloxone. Addicts are reportedly rejecting the drug
due to the adverse effects of the antagonist. The DAWN data reflect
the decreasing use of pentazocine and continued use of other phar-
maceutical opiates.
The clandestine synthesis, trafficking, and use of synthetic heroin
substitutes emerged as a problem on the west coast in 1984. Fen-
tanyl analogs, with analgesic potencies up to 1,000 times greater
than that of morphine, have been associated with several deaths
in California and Oregon. Although the use of illicitly produced
Demerol-type drugs (MPPP) was reported in California, availability
has not been confirmed by laboratory analysis since 1982. A by-
product (MPTP) formed during the synthesis of MPPP has caused
Parkinson's-like symptoms, a progressive, degenerative disorder of
the central nervous system.
International Developments
The diversion of dangerous drugs from licit channels has become
a major worldwide problem. International diversion of phar-
maceuticals and precursors is accomplished primarily through the
use of,falsified importation documents. The U.S. Government has
cooperated with various international organizations such as the
United Nations in efforts to eliminate this type of diversion. Addi-
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Figure 18
Narcotics/Analgesics and Heroin Substitutes/
Supplements" Use and Trafficking Indicators,
1981-1984_
Hospital Emergencies
Reported through DAWN_
System
Pentazocine
2,235
2177
1,461
679
Hydromorphone
654
685:
726{
710
Oxycodone
.1,271~
1,283
1,189,
1,207
Drug-Related, Deaths
Pentazocine
59
54
28,
13
Hydromorphone
21
19
141,
13
Oxycodone
17
11:
12
Prices
Retail
~?.=
Pentazoeinel
, ,
Triplennamine (set }
,
-$8 00
$1,0:06
-'*?$10.00-$12.00',
$15.00
codeine/
Glutethimide (set) $600
$6.00-$8.00,,,
$6.00-$12.00
$7.00-$14.00
Hydromorphone
(per 4mg.)(Dilaudid),I$4000
140.00
$40.00
$40.00
* Data represent the'DAWN Consistent Panel which includes only those data reported
by facilities on a consistent basis i e.,-, at ; 90 percent or more during each year. Data
representing the total DAWN System, provided in previous reports, `are no longer
used-because of, reporting ?fluctuations.-Although the Consistent Panel numbers are
lower because fewer facilities report consistently, they area more accurate indicator
of trends. Hospital emergencies for the years ,1981 through 1983 have been revised
accordingly.: 4 fi'
* * Data represent the ??total _DAWN System. The DAWN Consistent; Pan el data base
for medical'examiner7eports is-,so small compared to the total, DAWN System that
it is not a valid trend` indicator. PA A, medical examiner data` are not subject to the
same reporting inconsistencies as DAWN emergency room data. Medical examiner
data for New York City, however are imcompieteTafter 1981. ,'.
Source: Project DA WN, annual reports and SEA enforcement statistics.
tionally, U.S. Government programs to interdict suspicious shipments
at selected major ports continued during 1984. For example, 4.8
million dosage units of dangerous drugs originating outside of the
United States were seized at U.S. borders from all conveyances in
1984, about 98 percent in Texas. Most of this contraband was
shipped as air cargo. Thirty percent of the dangerous drugs reported
seized at Texas points of entry was counterfeit methaqualone com-
posed of secobarbital and was smuggled by land conveyances.
During 1984 there were increased efforts toward international
cooperation among those nations which manufactured controlled
substances and precursors. This cooperation was evident in such
activities as the exchange of timely intelligence, specialized law en-
forcement operations, and joint cooperative investigations. 0
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:.
:............; ,.,.,.,.,.,.,.,...................................................?..
Chapten 3?:
Hour
D o
ILI'
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Availability and Use in the United States
The number of heroin addicts/users in the United States in 1981 was
estimated at 490,000. Although no later estimates have been made,
heroin hospital emergencies in subsequent years suggest that the
number of users increased between 1981 and 1983. The
preponderance of heroin users since 1979 have not been first-time
users, but long-time users or recidivists. There also have been some
new initiates to heroin use; however, data from the national
household surveys show that individuals who first started using
heroin between 1979 and 1984 use it less frequently than those who
began their heroin use in previous years. In the 1980's, heroin users,
including new initiates, were older than their counterparts in the
1960's and 1970's. Based on year of first use data from treatment
programs, an increasing proportion was white. It is estimated that
in 1984 heroin users consumed about six metric tons, a stabiliza-
tion after increases during recent years (see Figure 19).
I Figure 19
Heroin Consumption In the United,wStates,
1981-1984* {
metric tons)
1982 9 1983 1984
(oto change) (% change) (0/ change)
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3.85 547;(**)
5.97 (-1)
"Heroin consumption estimates, for m 1982 and 1983 have been revised to be consis-
tent with the 1984 methodology. The revised heroin consumption estimate for 1981
was based on Treatment Outcome Prospective Study (TOPS) information applied
to data in the DEA publication, Heroin-Related Grime. Estimates for subsequent years
are based on Drug Abuse Warning Network (DAWN) Consistent Panel reporting of
hospital emergencies. Because the size of the user population and quantity of the
drug actually consumed are, small compared to other drugs, pure-drug heroin quan-
tities are estimated to theone-hundredth,of a metric ton to indicate trends.
* *Because of the difleront data' bases used in computing the 1981 and 1982 heroin
consumption estimates, ,those estimate$,arenot comparable.
Rates of change in heroin consumption during the past four years
have been heavily influenced by regional changes in availability,
as reflected by retail purity and price and by related trends in use.
The heroin situation of the 1980's has reflected the impact of the
three competing sources of supply. Heroin use and trafficking pat-
terns generally vary between different geographic regions of the
United States (see Figure 20), and sometimes within a region as well.
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Overall trends in the Northeast have been influenced by the availa-
bility of Southwest Asian (SWA) and Southeast Asian (SEA) heroin.
Most of the heroin in that region as well as in the Southeast was
SWA in 1984. According to the DEA Heroin Signature Program,*
SWA heroin, primarily heroin refined along the Afghanistan/Pakistan
border, accounted for 51 percent of the U.S. supply, a proportion
comparable to that of the three previous years. The Signature Pro-
gram indicates that only 17 percent of the U.S. heroin supply came
from Southeast Asia in 1984; however, the large opium production
in Southeast Asia and newly identified smuggling routes suggest
that there may have been more SEA heroin available. This area re-
mainsithe principal source of heroin for Canada. Trends in the West
have been influenced by the supply of Mexican heroin, which in
1984 constituted 32 percent of the U.S. supply and had a higher
purity at wholesale levels.
The connection between the supply and use can be seen by two
regional increases in heroin use which occurred in the past six years,
one in the Northeast and one in the West. The first, which started
during 1979 in the Northeast corridor, resulted from an increase in
SWA heroin. The second began during 1981 in southwest cities as
a result of an increase in the availability of Mexican heroin. In addi-
tion, SEA heroin became more readily available between 1982 and
1984. By 1983-1984, heroin indicators for the Northeast had started
to decline, while those reflecting heroin use in the West continued
to increase. In 1984, the conflicting trends offset one another,
together resulting in a slight decline at the national level.
The number of heroin/morphine-related hospital emergencies also
varied by region. These emergencies rose significantly between
1980 and 1982, a period characterized by rapidly rising heroin
availability, increasing retail purities, and lower prices. Since 1982,
the rate of increase has been much less pronounced. During 1984,
heroin/morphine-related hospital emergencies decreased 1 percent
from 1983 levels (see Figure 21). New York City reported'a 16 per-
cent decrease. Detroit and Los Angeles also experienced declines,
while Chicago, Miami, and Washington, D.C. showed increases. The
number of heroin-related deaths reported in 1984 increased 31 per-
cent; this increase occurred almost exclusively among that popula-
tion which uses heroin in combination with other drugs. In addition,
death data are weighted more heavily by trends in the West because
of the absence of death data from New York City.
*Heroin 'signature chemical analysis identifies and quantifies selected heroin
characteristics and secondary constituents. From the resultant data, heroin exhibits
are classified according to the process by which they are manufactured, which in
turn enables the association of exhibits with geographic regions.
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Figure 20
Origin of Heroin Encountered in the United States
by Geographic Area, 1984*
Mexican: 0 Southeast Asian: Southwest Asian: 0
73% 9% 18%
57% 27% 16%
estimates were derived frorn Heroin Signature analysis
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The connection between intravenous heroin use and the contrac-
tion of AIDS is now clearly documented. Treatment officials in New
York City and Newark reported large numbers of AIDS victims
among heroin users in 1984, and projected that the numbers would
increase substantially because of the large number of addicts who
have been exposed and will most likely develop symptoms after the
incubation period. This is a concern in other states as well.
Approximately 79 percent of the heroin reaching the United States
in 1984 arrived by commercial air (see Figure 22). Smuggling con-
veyances continued to differ between the three main source areas.
Although commercial air was the principal mode of transportation
for SWA and SEA heroin, most Mexican heroin arrived by land
transportation. Commercial and non-commercial vessels have a
minor to negligible role in opiate smuggling.
The primary suppliers of wholesale quantities of SWA heroin in the
Northeast and Southeast in 1984 included not only traditional
organized crime groups, but also Pakistanis, Lebanese, Nigerians,
and Turks. Import/export companies were sometimes used as fronts
for narcotics smuggling. Nigerians supplied SWA heroin to black
organizations in Washington, D.C., as well as to those in smaller cities
such as Durham and Greensboro, North Carolina.
The primary source of heroin in the Midwest and Southwest was
Mexico; seizures of kilogram quantities were more common than
in the late 1970's and early 1980's. Houston was a major transship-
ment point for Mexican heroin from the Durango area destined for
distribution in Chicago. Lebanese, Pakistani, and Iranian nationals
also controlled wholesale quantities of SWA heroin in the Midwest.
Arizona was the principal Southwest point of entry for Mexican
heroin,' although Texas was also frequently used.
In most areas along the west coast, Mexican heroin availability and
purity increased. The availability of 'black tar,' a poorly processed
heroin, but sold at the street level with higher than average purity,
also increased. The lowest 'black tar' purities reported were 40 per-
cent, but most samples were of higher purity. While Mexican heroin
remains the most widely used variety of heroin on the west coast,
it continues to compete with SWA and SEA varieties. California was
the principal point of entry for the majority of Mexican and SEA heroin
entering the west coast area, but SEA heroin also entered via Hawaii
and Seattle, Washington.
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Heroin and Morphine .Use and .Trafficking indicators,
Figure 21
19$1 , .1982`: 1983
DAWN System" 7,037 ,w , 9,967:; 11,028 10,901
i of-i oq
Hospital. Emergencies
Reported through the
Heroin/Morphine :r
related
Deaths (less New
York City) * * 698 894 771 1,005
New York City o? 232 ? 97 29: 41
Retail `Heroin Puntym 3 9 5 0 4.5 4,7
Origin
-(%)*
. ~R
Southwest Asia k 54, ? 52 48, 51
Mexico. 36 34 .33 ? 32
Southeast Asia a 10 14 19 = 17
Heroin Prices (Newt
York City)?,
Wholesalew (per kg } x 225 $200 $215.. $215
'
(thousands)
Retail (per:,1 5ygm) , $50 $60g . $45=$60 -$6Q_,$45465
*Data represent the DAWN"Cohsistent`Panel which includes only those data reported
by facilities on a consistent basis,F i e at 90,percent or more during each year. Data
representing the total DAWN System provided in previous reports, are no longer
used because of reporting fluctuations4.,'Although the Consistent Panel numbers are
lower because fewer facilities report consistently,, they are a more accurate indicator
of trends. Hospital emergencies for the years 1981. through 1983 have been revised
accordingly.
-'Data represent the total DAWN System :The DAWN Consistent Panel data base
for medical examiner reports is so small compared, to-the total DAWN System that
it is not a validtrend indicator DAWN medical ;examiner data are not subject to the
same repoiting`inconsistencies as DAWN emergency room data. Medical examiner
data for New York City however are incomplete after 1981.
* *Percentage of total supply of source area ~s based on the DEA Heroin Signature
Programg
Source: ?.# Proiect`DAWNsannual?feports grid?DEA"enforc`ement statistics.
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Figure 22
Heroin Seizures from Various Smuggling
Conveyances, 1984
(percentlof total volume)
M. - M Me M M
Commercial Air: 79%
Developments in Source Countries - Southwest Asia
Opium Production: Estimates of illicit opium production in
Southwest Asia are lower in 1984, due to the availability of better
data on Afghanistan (see Figure 23). In the absence of intelligence
in that regard, there is no reason to believe that Iranian opium poppy
cultivation declined from the level of the past four years. Pakistani
opium production, however, declined slightly. Unconfirmed reports
of significant cultivation in Lebanon surfaced during 1984.
tion d Southwest Asia 1981 1984'
x~;"A axr s 3~
Opium Produxllitola
~r`.x`~5't~"~~axre:x; rt ax'
(metric~tons)~~
* ~ ,* ~ 11981 1 8 re :e ~ 83
m ~~~ ~ ~ ~ red ~~ ~ ~" ~~ ~ are~+~ ~+;~~ ~ ~? ~~~, ?Afghanistan ~ 225~~ X250-300 400 575 140 180
Iran X400600 ~ 400 600 X 400 600 400 .,600
Pakistan 7512550 7545 X60 40"" 50
Total 7.00 ,950 00 975 845 235 580 830
Despite the decrease in the regional opium poppy harvest in 1984,
there were no indications that major opium shortages resulted.
Stockpiles held in the North-West Frontier Province (NWFP) of
Pakistan may have prevented large price increases. Prices for
opium, however, have more than doubled compared with 1983.
Whereas in 1983 a farmer received about $30 to $35 per kilogram,
in 1984 he was paid at least $70 for the same quantity.
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The Government of Pakistan has been successful in its effort to
reduce gradually the country's opium poppy cultivation. The
decrease in 1984, however, was caused in part by an absence of
winter rains; with sufficient water, the poppy crop could have ex-
ceeded that of 1983.
The apparently enormous reduction in the Afghan opium poppy
harvest may have been due to a combination of less than ideal
weather and a change in the methodology used to estimate opium
poppy cultivation in Afghanistan.
In Iran, the long war with Iraq, the ongoing rebellion by the Kurdish
minority, and economic stagnation prevented the government from
pursuing an effective narcotics control program in 1984. In addi-
tion, the large and growing opiate addict population has likely in-
creased demand. As a result, opium poppy cultivation probably has
not decreased over the past four years.
The licit opium poppy harvest in India was 434 metric tons in 1984,
lower than the expected 700 metric tons because of adverse weather
conditions early in the year. If world demand remains stable, the
large opium stockpile managed by the Government of India will
decrease marginally. Although illicit cultivation in India is believed
to be insignificant, this activity reportedly is expanding in non-
traditional growing areas.
Consumption: Heroin use in Pakistan continued to escalate. By
the end of 1984, it was estimated that there may have been 200,000
to 300,000 addicts in the country, as well as at least 300,000 opium
users. Drug treatment and education programs were improved, and
public awareness of the situation was heightened by greater media
attention.
The number of opium addicts in Afghanistan probably remained in
the 100,000 to 125,000 range, while heroin smoking reportedly
increased.
Prior to the 1979 revolution in Iran there were in excess of one million
opium addicts in the country, in addition to about 50,000 regular
heroin smokers. While opium use may have decreased somewhat,
heroin addiction has increased, particularly among the urban,
unemployed youth; there probably were at least 100,000 heroin ad-
dicts in Iran by the end of 1984.
In 1984, there were an estimated three to five million individuals in
India who used* drugs diverted from licit Indian production or
smuggled across the India/Pakistan border. An estimated 200 to
300 metric tons may be diverted annually from licit supplies to the
*Opium users in this region are of varying degree, from the occasional user to the
addict.
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illicit market. Heroin addiction in India, which was negligible two
years ago, has become a significant problem. Drug using Afghan
and Iranian refugees have increased the number of addicts within
India.
Labor) tories/Refineries: The large quantities of heroin seized in
Pakistan - about two metric tons annually since 1982 - reflect con-
tinuedlheroin laboratory activity in the tribal areas of Pakistan and
eastern Afghanistan. Pakistani authorities confiscated three opera-
tional heroin laboratories during 1984; all were located in remote
areas of the Khyber Agency, NWFP. The seizure in December in-
volved, a facility larger and more sophisticated than any prior
laboratory seized in Pakistan, and also included approximately 500
kilograms of partially refined heroin base.
There] were numerous active heroin laboratories in eastern
Afghanistan; most of their output was exported to or through
Pakistan. The laboratories in southwestern Afghanistan may have
been ithe sources for some of the heroin smuggled to Iran.
Laboratory activity in Iran was believed to have been concentrated
in or near the cities of Tabriz, Tehran, and Zahedan, as well as along
the Iran/Turkey border.
Illicit heroin production in India continued to be minimal compared
to other source areas. Most of the laboratory activity was located
in north-central India, in close proximity to the licit poppy growing
areas.iThere were reports of two new refinery areas, one in western
India, and the other near the India/Nepal border.
Conversion of morphine base and opium gum in Turkey, first noted
in lateI1983 after a two-year lapse, continued to escalate in 1984.
Four laboratories were seized. in 1984, two in eastern Turkey, one
in south-central Turkey, and another in Istanbul. These new
laboratories were crude and the facilities were poor, but the prod-
uct was a high-purity heroin. It was usually sold in multi-kilogram
quantities to other Turkish traffickers who then sold it to customers
in Europe. While there is no illicit production of essential chemicals
in Turkey, an increasing trade in diverted acetic anhydride has
developed over the past few years to meet the needs of heroin
chemists both in Turkey and elsewhere in the Middle East. There
is no evidence that Turkey was the primary source for the opium
processed there.
In Syria, Kurdish and Armenian traffickers with transborder ties re-
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mained active in the conversion of opiates to heroin during 1984,
primarily in the northern border area around Aleppo and Latakia.
No laboratory activity was confirmed in Lebanon during 1984;
however, the civil war has virtually eliminated police action. It was
likely that opiate refining continued in the Baalbek area, Tripoli, and
Beirut.
'Trafficking Trends: Pakistan remained a major heroin refining and
trafficking site. Much of Afghanistan's opiate production was ex-
ported across its mostly open border with Pakistan. Iran continued
to be an important outlet for both Pakistani and Afghan opiates. The
proportion of these imports consumed within Iran and the amount
transshipped to Turkey, Western Europe, and North America in 1984
are unknown. Since late 1982 the Persian Gulf States have been
popular transit areas, in part because of their large populations of
expatriate Pakistanis.
India continued to serve as both a transshipment and consumption
country for much of the opiates produced in Afghanistan and
Pakistan and also as a transshipment country for SEA heroin.
Chemicals used in the heroin conversion process, particularly acetic
anhydride, were produced in India and smuggled across the In-
dia/Burma border to SEA heroin refineries. Some heroin produced
in these laboratories was smuggled back across the Burma/India
border for shipment elsewhere. Drug trafficking from India by
members of separatist groups increased during 1984.
The number of Nigerian nationals arrested with heroin increased
significantly during 1984, and the quantity of heroin seized more
than doubled. Alternative methods of operation, including the use
of non-Nigerian couriers and less conspicuous routing, have evolved
in response to worldwide drug law enforcement pressure.
Turkey's location between opium producing areas in Pakistan and
Afghanistan and consumers in Western Europe and North America
continued to make it a natural transit country for illicit narcotics. The
quantities of opiates transiting Turkey were substantial. Opium gum,
morphine base, and heroin were smuggled to Turkey from the east
- generally from Iran but also from Iraq - and were shipped either
directly west to Syria or south to Turkey's Mediterranean coast. The
drugs were then moved to Western Europe and the United States.
The most common route from Turkey was overland through Eastern
Europe. There were indications that traffickers increasingly were shift-
ing to sea routes via Syria, Lebanon, and southern Turkey, and then
to Italy, other Western European countries, or the United States.
Syrian traffickers continued to deal primarily in heroin for central and
Western Europe, and the United States. Most were from Aleppo and
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Azaz, although the use of couriers from Jordan and other Arab na-
tions has increased. All modes of commercial transportation were
used. The political disruptions in Lebanon have forced traffickers
to use a number of new routes. Increased heroin seizures in
Damascus during 1984 indicate that traffickers continued to use the
Damascus rather than the Beirut airport. Additionally, violators were
using small vessels for transportation to intermediate destinations
in the' Mediterranean.
Heroin seizures in Europe during 1984 totaled approximately 1,500
kilograms, the same as in 1983. SWA heroin commanded approx-
imately 80 percent of the supply in Europe. The European coun-
tries reporting the largest quantities of heroin seized during 1984
were: Italy, the United Kingdom, the FRG, France, and Belgium.
The majority of Western European countries reported an increase
in heroin use. While data concerning drug-related deaths and drug
use in' European countries are not comparable due to varied in-
dicator systems, the data in most countries reflected increases. Over
the last four years, nearly all Western European countries reported
increases in drug-related deaths. Heroin overdose deaths accounted
for over 90 percent of all drug fatalities. Addict population figures
remained relatively constant during the same period, with the ex-
ception of Italy and Spain which reported increases.
Most of the SWA heroin in the United States entered directly from
SWA source countries or was transported via Europe. Trafficking
groups based primarily in Italy, France, and Spain transshipped
substantial quantities of heroin from Europe to the United States in
1984. Italian organized crime elements located in those countries
have direct contact with their U.S. counterparts. In many cases
heroin was concealed within legitimate commercial goods
transported to the United States in air or sea freight shipments. Dur-
ing 1984, an increase was noted in heroin trafficking by Lebanese
and Syrian groups which have established operations in France and
Spain. These groups were capable of smuggling multi-kilogram
quantities of heroin, favoring transshipment to the United States via
courier.
Drug Control Efforts: In 1984, the Government of Pakistan con-
tinued1to improve its opium poppy crop reduction efforts. Govern-
ment eradication efforts and drug law enforcement pressure against
planting opium poppy in NWFP areas receiving development
assistance contributed to the decline in the country's opium pro-
duction to about 45 metric tons for the 1984 harvest. In September
1984, implementation of Pakistan's Special Development and En-
forcerrient Plan, administered by the United Nations Fund for Drug
Abuse; Control, began in the Dir area of Pakistan's NWFP. The U.S.
Department of State likewise provided assistance to the Dir area in
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1984. Opium poppy eradication in the Malakand and Buner Sub-
divisions and the Gadoon/Amazai region continued in 1984. Despite
these efforts, there was clearly enough opium available to fuel heroin
laboratories in the region, with Pakistani opium supplemented by
production from Afghanistan.
The Government of Afghanistan may have been partially responsi-
ble for a drop in that country's opium poppy cultivation in 1984.
This outcome, however, would have been incidental, as the govern-
ment's measures were designed to destroy the food production
systems in some areas controlled by guerrilla forces. Poor weather
could also have been a contributing factor.
In 1984, the Iranian government was reported to have instituted
severe measures, including the death penalty, against large numbers
of narcotics traffickers. Since 1980 the Government of Iran has sub-
mitted reports to the United Nations of unverified enormous ag-
gregate annual seizures of narcotics. There have been no reports
of opium poppy eradication in Iran since 1980.
Turkish enforcement efforts remained effective in suppressing opium
production during 1984, but that country continued to be a conduit
for SWA opiates. There were some signs that Turkish enforcement
efforts were stimulating a shift in trafficking routes to Syria and
Lebanon, where there are virtually no controls.
Developments in Source Countries - Mexico
Opium Production: Mexico remained a significant source for heroin
during 1984. Opium poppy cultivation continued to expand, with
an estimated 5,200 hectares under cultivation, a 40 percent increase
over the 3,700 hectares cultivated in 1983. The Government of Mex-
ico (GOM) reported that opium poppy eradication also increased,
from 2,000 hectares destroyed in 1983 to more than 3,100 hectares
in 1984. Although the heaviest concentration of opium poppy cultiva-
tion was in the traditional tri-state area of Durango, Chihuahua, and
Sinaloa, poppy growth was scattered throughout the country. There
is a degree of uncertainty regarding the GOM estimate of opium
poppy hectarage and amount eradicated; therefore, the U.S. and
Mexican Governments are planning joint survey activities in 1985
to better estimate the extent of cultivation and the effectiveness of
the eradication program.
Despite eradication efforts in 1984, about 21 metric tons of opium
are believed to have been produced during the year, surpassing
production during each of the previous four years (see Figure 24).
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Figure 244 ~
Y
Opium TProduction
d Mexico X1981, 1984
(metric tons) v e..o-vra~ w o--.
? a
Base', on a yield factor of ten kilograms of opium to one kilogram
of heroin, and considering that almost 100 kilograms of opiates were
seized during the year, an estimated 2.0 metric tons of heroin are
believed to have been available for export. The majority of the heroin
produced in Mexico is shipped to the United States.
Consumption: An insignificant quantity of opiates and other drugs
continued to be consumed in Mexico, generally in the major
metropolitan areas.
Laboratories/Refineries: Heroin conversion laboratory seizures in
Mexico increased from five in 1983 to twelve in 1984. Several
laboratory seizures were made in unusual locations such as Mex-
ico City and Nuevo Laredo on the United States/Mexico border.
The GOM reported 70 kilograms of opium seized in 1984, a 42 per-
cent increase over the 49 kilograms seized during 1983. Heroin
seizures in Mexico rose 38 percent from 9 kilograms in 1983 to 24
kilograms in 1984.
Trafficking Trends: Drug-related violence, primarily in Culiacan,
Sinaloa, and Guadalajara, Jalisco, increased in 1984. This activity
is underscored by increased competition among traffickers and a
continuation of severe economic problems. 'Black tar' heroin of Mex-
ican origin, noted in 1983, continued to appear in the Southwestern
United States. Known as 'chapapote' or 'tar,' this gummy heroin
is relatively inexpensive and of high purity.
There has been little change in Mexican heroin smuggling methods
over the past few years. The predominant conveyance method con-
tinued 'to be ground transportation, mainly automobiles, trucks,
buses, and pedestrians; small aircraft may also have been used.
The average purity of the heroin seized from both air and land con-
veyances along the border rose from almost 19 percent in 1983 to
approximately 52 percent in 1984; the increase was actually less
dramatic because one large seizure of low-purity heroin (around 6
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percent) in 1983 affected the overall average for that year. Most of
the Mexican heroin seized along the border in 1984 was at Califor-
nia points of entry. Seizures along the southern borders of Arizona
and New Mexico increased during 1984 and those along the Texas
border decreased.
Drug Control Efforts: The air wing of the Mexican Attorney
General's office continued widespread aerial opium poppy eradica-
tion efforts using herbicides in 1984. The helicopter and fixed wing
aircraft fleet was expanded to permit the establishment of an in-
dependent verification component directed by the Inspector
General's office. In 1984, a strike force concept also was im-
plemented, whereby eradication forces were concentrated in the
key sectors of the country. Sweep operations took place in the states
of Oaxaca, Guerrero, and Chihuahua. The Mexican Army also con-
tinued its manual eradication effort.
Developments in Source Countries - Southeast Asia
Opium Production: Another abundant opium crop was harvested
in the Golden Triangle during the 1983/1984 growing season, an
estimated 145 metric tons more than the previous year (see Figure
25). Ideal weather and expanded planting in Burma caused the in-
creased production. Burma produced approximately 90 percent of
the total, while Thailand and Laos supplied the balance. As in the
past, between one-half and two-thirds of Burma's opium poppy crop
was produced in insurgent-controlled areas of the eastern and north-
ern Shan State where the Burma Government exerts little control.
Thousands of small poppy fields were dispersed across rugged and
remote terrain in an area about the size of Louisiana.
Opium Produ4ct`iGoldenTrlanglpe, 1980 X1984*
Figure 25
(metric ntons)
Burma
?The Thailand figures are based on annualThar Goverment surveys, the Burmese
figures on ground surveys in government controlled areassand estrma`tes',of BGP,
controlled growrng areas sand the Laos?estimates oo assumedrnumber of hectares
under- cultivatron~ ~~~nw~~.. ~.a
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An estimated 85 to 90 percent of Thai opium was consumed locally;
in the past many politically active Thai, including most government
leaders, believed that the problem of hill tribe opium production
could ~be solved without recourse to such confrontational methods
as eradication. This position has changed, however, and a Thai
government policy has emerged which favors eradication in in-
stances in which farmers have benefited from development
assistance, have alternative means of income, and yet continue to
grow opium for sale. It is anticipated that this policy will result in con-
siderable reductions in opium production.
Since! Laos is a denied area, the narcotics situation is difficult to
estimate. Lao hill tribe growers reportedly were selling increasing
amounts of opium on the illicit market to Burmese buyers who pay
more 'than the official price offered by the Laotian government. In
the past, the government has sold opium to Communist Bloc coun-
tries f I or medicinal purposes.
Consumption: Southeast Asia remained the primary recipient of
Golden Triangle opiates in 1984. Burma, Thailand, Malaysia, and
Hong Kong were the major opiate consumers and, while estimates
vary, there may be more than one million narcotics addicts in the
Far East. Elsewhere in the region, an estimated 35,000 to 45,000
Australian heroin addicts were primarily consumers of SEA heroin.
Somel SEA heroin entered the United States and Europe.
Laboratories/Refineries: As in past years, some of the opium pro-
duced in Burma was converted in the Shan State in territory con-
trolled by the Burmese Communist Party (BCP) into impure mor-
phinei base and heroin base to reduce bulk and prepare it for con-
version at heroin refineries. These products, along with opium, were
moved to refineries concentrated along the Burma/Thailand border.
These remote refining areas, outside government control, continued
to belrun by well-armed insurgent forces and trafficking organiza-
tions.jThese numerous heroin refineries do not all produce continu-
ally, but are subject to such factors as availability of raw materials
and supplies, orders for their products, and security considerations.
The refineries vary in size and design from isolated and temporary
thatched huts to more permanent wooden structures with living
quarters and defensive positions.
In 1984, the two dominant opiate producing and refining groups
in the Golden Triangle continued to be the BCP and the Shan United
Army;(SUA), once an insurgent force, but now strictly a trafficking
organization. The BCP moved into a SUA-controlled area at the
Thailand/Burma border in 1983, but was forced out within a few
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months. While the two remain antagonists, they find it mutually
beneficial to do business with one another. The BCP continued to
sell opium and opiate products to the SUA, other trafficking groups,
and independent refinery operators along the border in 1984. Some
of the opiates produced by refineries along the Burma/Thailand
border and BCP refineries in the Shan State were smuggled to In-
dia and from there to other countries.
Heroin refineries for conversion of heroin base to SEA No. 3 (smok-
ing) heroin also operated in Malaysia, primarily in Penang and in
jungle terrain along the Thailand/Malaysia border. Some of this
heroin was exported, but most went to Malaysian addicts.
Trafficking Trends: A variety of ethnic and political insurgent and
trafficking groups along the Burma/Thailand border were engaged
in various facets of opiate smuggling, refining, and sales to finance
their organizations. Traditionally, major ethnic Chinese traffickers in
Bangkok controlled much of the foreign sale and movement of
Golden Triangle heroin from Thailand. A combination of drug law
enforcement pressure, publicity, and the drought had reduced their
share of the market for a few years; but in 1984, with heroin becom-
ing abundant again, the major Chinese traffickers were once again
controlling a sizeable portion of the drug traffic. In addition, there
was an increase in the number of Sino-Thai traffickers, both in
Bangkok and other parts of Thailand, who controlled smaller
amounts of opiates for shipment elsewhere.
While Thailand remained the primary route through which Golden
Triangle heroin was distributed, alternative transportation routes con-
tinued to be used more frequently in the face of stepped-up pressure
from both Bangkok and Rangoon police and military units operating
against the Burma/Thailand border refineries and trafficking groups.
An increasing amount of opiates moved south through Burma along
the Tenasserim Coast, both overland and by sea, to southern
Thailand and Malaysia, for conversion at heroin refineries along the
Thailand/Malaysia border and in Penang. Several routes to India
through the Burmese cities of Mandalay, Taunggyi, and Maymyo
were also used to bring large quantities of precursor chemicals the
other way for use at refineries in BCP-controlled areas and along
the Thailand/Burma border.
Malaysia appeared to be emerging as an important refiner and
transshipper of Golden Triangle opiates. Some Malaysian narcotics
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officials speculate that the country's growing addict population con-
sumes approximately five metric tons of heroin annually and that
even imore heroin is exported or transshipped abroad every year;
moreover, they believe that the great majority of that heroin is now
processed within Malaysia using morphine or heroin base from the
Golden Triangle. While these estimates are unofficial, they may repre-
sent a growing perception of heroin production, export, and use
in Malaysia.
Hong Kong, a primary consumer of Golden Triangle opiates, im-
ported large amounts of heroin base for local conversion into heroin
No. 3~, or smoking heroin. Seizures of heroin base in Hong Kong
have 'risen steadily over the past several years; more than a thou-
sand kilograms were seized in 1984. Many heroin couriers travel-
ling from Asia, particularly to Europe, were Hong Kong Chinese.
Hong Kong was also a major financial and money laundering center
for narcotics sales and purchases. Some of the heroin produced
in the' Colony for local consumption was shipped elsewhere, but
there are no reliable estimates of the amount.
SEA heroin activity in Europe continued at high levels, especially
in The Netherlands, Belgium, and France. Although seizures
decreased from 1983 levels, SEA heroin commanded approximately
20 percent of the supply in Europe. In The Netherlands, moreover,
two heroin laboratories that were converting heroin base to smok-
ing heroin were seized from Chinese traffickers who have become
more active in the SEA heroin traffic.
Drug Control Efforts: The governments of Thailand and Burma
took al number of actions in 1984 to stem the flow of narcotics from
the Golden Triangle. As most of the opium and heroin entering
Thailand originates in Burma, Thai government narcotics control ef-
forts were focused on destroying heroin refineries inside Thailand,
disrupting trafficking routes from Burma, and preventing the smug-
gling of precursor chemicals into Burma. As a result, Burmese traf-
ficking groups have been denied the use of Thai territory for sanc-
tuary, and heroin refineries have moved deeper into Burma. Some
progress was made in opium poppy eradication in Thailand. In-
creased eradication is expected during the next growing season.
The Burma government continued to emphasize opium poppy
eradicl tion, and in late 1984, conducted an aerial poppy eradica-
cn
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tion test program. The Burma government has agreed to an ex-
panded eradication program for the next growing season. In the
1983/1984 growing season, the government reportedly manually
,destroyed approximately 4,450 hectares of poppy, an 11 percent
increase over the number of hectares destroyed in the 1982/1983
season. The government also continued its interdiction efforts aimed
at disrupting the activities of insurgents and opiate traffickers..
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 ----------------- --
Chaqten
ILive
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As has been the case for several years, south Florida, specifically
Miami, continued to be the center for drug money activity in 1984.
South Florida's prominence in this regard is attributable in large
measure to its status as a major importation and distribution center
for both marijuana and cocaine; moreover, Colombians launder the
greatest amount of proceeds generated by the sale of these drugs.
Successful law enforcement operations in southern Florida have
caused some drug trafficking organizations to change their methods
of operations, including their financial activities. Some traffickers,
most notably those dealing in marijuana or cocaine, have moved
at least part of their money laundering activity to other major U.S.
cities such as New York, Los Angeles, and Houston. These cities,
and Miami, serve as collection points for monies associated with all
types of illicit drugs.
Drug monies were transported to these collection points by a vari-
ety of methods. Currency was physically transported by couriers
using land vehicles, and private and commercial aircraft. Drug
monies were also moved through financial instruments, such as
cashier's checks, wire transfers, and checks drawn on corporate
and personal accounts. The transactions using these instruments
were usually concealed to resemble a legitimate business transaction
or accomplished through nominee names which disguise the true
identity of the drug monies' owner(s). Money couriers travelled to
specific areas to pick up drug monies and then purchased cashier's
checks, often in nominee names, from different banks in denomina-
tions of less than $10,000 to avoid U.S. Treasury Department report-
ing requirements. * These checks were then physically transported
or mailed to an individual who deposited them in a bank account.
Once in an account, these monies are easily wire transferred to either
another domestic or an overseas financial institution.
Some drug monies never left the United States. Instead, they were
either used to support expensive lifestyles, or were invested in local
business and real estate ventures, certificates of deposit, and, to
a lesser degree, collector items and precious stones and metals.
On rare occasions, drug traffickers buried their drug monies in the
ground. A trafficker in St. Louis, for example, buried over $340,000.
Another trafficker buried on his Virginia property gold, platinum, and
jewelry, primarily proceeds of his illicit drug trafficking activity.
Provisions of the U.S. Bank Secrecy Act require that financial institutions report
currency transactions in excess of $10,000. This act also requires the reporting of
the movement of over $10,000 in currency or negotiable instruments by individuals
into or out of the United States.
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Wire transferring funds overseas was just one of the methods uti-
lized by traffickers to transport their drug monies out of the United
States during 1984. Drug monies, in the form of bank drafts or U.S.
currency, were also transported by seamen or commercial air
couriers. Private aircraft were used to physically transport boxes of
U.S. currency.
The methods used to return laundered funds to the United States
were also very diverse, although the most common appeared to be
loans, or gifts from a foreign entity or asset acquisition by a foreign
entity. One method in 1984 was the use of a credit card issued by
a tax 'haven bank. The U.S. citizen can charge items to his credit
card in the United States which results in a debit against the foreign
account.
The banking system in the Caribbean and Central America con-
tinued to be the primary recipient of drug monies associated with
South American cocaine, Mexican heroin and marijuana, and Co-
lombian and Jamaican marijuana during 1984. The principal recip-
ient of these monies was Panama, the center preferred by Colom-
bian traffickers. Panama's appeal is attributed to the country's ideal
location, and its bank and commercial secrecy laws. Panama also
offers the Latin drug trafficker an opportunity to deal with a banking
community that speaks a common language and an economy that
is closely tied to the United States. Traffickers of other nationalities
and some Colombians patronized The Bahamas, the Netherlands
Antilles, and the Cayman Islands. The Turks and Caicos Islands,
Antigua, St. Vincent, and Montseratt also were reported to be ac-
tively promoting themselves as havens since the United States has
become increasingly successful in gaining access to data which
previously were withheld from law enforcement scrutiny in some of
the more prominent havens. The Cayman Islands was the preferred
money laundering center in the Caribbean for Jamaican traffickers.
Drug ;monies may remain in the Caribbean banking system for only
a brief period and are then transferred to a second financial center,
such as Switzerland, or the United States for investment purposes.
Some investigations involve more than one country: a trafficker may
utilize~one country to maintain bank accounts, another to incorporate
a company or trust, and a third in which to locate the parent com-
pany.1 Secrecy regulations in three countries must be considered
in documenting a transaction for law enforcement purposes.
i
Financial centers in Europe and the Middle East were the primary
recipients of drug monies associated with SWA heroin and hashish.
Switzerland was probably the most significant recipient of drug
monies; Liechtenstein, the Channel Islands, and Luxembourg were
also significant recipients. Banking officials in Switzerland and Lux-
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embourg have indicated that monies associated with cocaine and
marijuana trafficking in Europe are deposited in these countries. DEA
has received information that a number of Colombian and more
recently Pakistani citizens have stayed at hotels in Luxembourg for
one or two nights, possibly to act as financial couriers for cocaine,
marijuana, and heroin traffickers. Again, the above-mentioned finan-
cial centers may only serve as transit centers for much of the drug
monies they receive. It is known, for instance, that some Italians and
Pakistani nationals involved in SWA heroin trafficking have used
Switzerland merely as a transit center. Very little Pakistani drug
Money, however, is repatriated to Pakistan; most of it is believed
to be held in dollar accounts in the Persian Gulf area. The money
is.often deposited in a fiduciary account which permits a financial
advisor or a bank to make transactions on behalf of a client without
identifying the beneficiary.
In the Far East, Hong Kong has been the leader in the financial and
banking sector. Some SEA heroin traffickers have reportedly
relocated their money laundering activities, since Hong Kong will
revert to Chinese control in 1997 and its future economic status is
uncertain. If an exodus of SEA heroin monies from Hong Kong does
in fact occur, Singapore would undoubtedly receive a sizeable por-
tion of these monies. Singapore's bank secrecy law already attracts
a 'considerable flow of drug monies. There is also speculation that
some SEA heroin monies may be laundered domestically in the large
Asian communities in California. Interestingly, both the Los Angeles
and,San Francisco Federal Reserve offices reported considerably
higher surpluses in 1984 than in 1983.
International Cooperation
International concern over the magnitude of existing and potential
problems generated by the illicit drug traffic has increased signifi-
cantly in the recent past. The increase in the number of treaties and
informal agreements that permit the exchange of financial records
is evidence of such concern and cooperation.
The United States signed a financial information agreement on July
27, 1984, with the United Kingdom and the Government of the
Cayman Islands which entered into force on September 13, 1984.
The agreement requires that, upon request, the Cayman Islands pro-
vide federal prosecutors with financial data, documents, and records
relating to U.S. drug and organized crime investigations. U.S. prose-
cutors successfully used this agreement to obtain bank information
on several occasions in 1984.
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The United States and Switzerland signed a Mutual Legal Assistance
Treaty on Criminal Matters in 1977 and since then the United States
has made over 250 requests for assistance. In the past two years,
the Swiss Government has frozen over $100 million in drug-related
assets with expected forfeiture to the Swiss Government. The treaty
enables law enforcement agencies to gain access to banking infor-
mation in criminal matters. The United States has similar treaties with
Italy (not yet in force) and The Netherlands, with the exception that
seized assets are forfeited to the government requesting the action.
Treaties with Panama and The Bahamas are currently in the negotia-
tion stage.
Several other countries have existing laws that provide for the seizure
of drug assets. These countries include Ecuador, Denmark, Finland,
Iceland, Norway, Sweden, Egypt, Venezuela, Brazil, Costa Rica, and
Bolivia. Egypt has used its drug asset removal laws to seize $1.6.5
million in drug-related assets.
Limited use has been made of the drug asset removal laws available
in several of the above-mentioned countries, primarily because the
forfeiture requires a greater burden of proof by the prosecution. In
these countries, law enforcement and some legislators have
recognized the need for new legislation. Several other countries in-
cluding Thailand, Malaysia, Jamaica, and Argentina are in the proc-
ess of enacting drug asset removal legislation or at a minimum, are
studying the matter. In addition, in 1984, a financial group was
established at Interpol Headquarters in St. Cloud, France. The
group's activities are intended to emphasize and facilitate financial
investigations as a way to deal with international drug trafficking,
and to encourage multilateral approaches to the problem. ?
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