HEARING ON DRUG PRODUCTION AND TRAFFICKING IN LATIN AMERICA AND THE CARIBBEAN, MAY 12, 1983

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91B00135R000200330020-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 7
• Document Creation Date: December 20, 2016
• Document Release Date: March 11, 2008
• Sequence Number: 20
• Publication Date: May 3, 1983
• Content Type: MEMO

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Central Intelligence Agency
Office of the Deputy Director for Intelligence
NOTE FOR: David Gries, NIO/Narc
FROM :F- --IDDI/Congressional Support
Attached is background supplied by the
Subcommittee staff to the Members for the
May 12th open hearing. 'Your briefing on
Wednesday, May 11, at 1:30 p.m. should provide
classified information that responds to the
questions raised and alerts the Members to key
issues that should be covered in the open
hearing. The format is up to you.
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M E M O RAN D U M
TO: Members of the Subcommittee on Crime
FROM: William J. Hughes
SUBJECT: Hearing on Drug Production and Trafficking in Latin
America and the Caribbean, Mayf2, 1983
Drug Trafficking is a major focus of Federal criminal law
enforcement. Reducing the supply of drugs is believed to be
a major factor in reducing the use and abuse of dangerous con-
trolled substances. This use and abuse of substances that have
been described as "crimogenic substances" plays a strong role
in the commission of crime in the United States. There is a
national consensus that eliminating drugs at the source is
cheaper than trying to interdict them after they leave the
source country.
Latin America is a major source of marijuana, cocaine and counter-
feit methaqualone. The Caribbean is a major route for shipment of
these drugs.
The Crime Subcommitteee, as part of its overview of the nation's
crime problem and the means that can reduce crime, needs to
consider: (1) the current situation involving the production and
trafficking in drugs in Latin America and the Caribbean, (2)
current efforts.of the United States and the governments in the
region to curb the production and trafficking in the region,
and (3) the economic, political and social circumstances in each
country that affect the desire and ability of a particular govern-
ment to curb the production and traffic.
The hearing is designed to learn more about the factors in the
source countries that will determine how successful control or
eradication of drug crops and trafficking might be.
The hearing will be an open hearing. The Administration naturally
is reluctant to make speci is statements in writing about the extent
of corruption or other sensitive factors in a particular country,
but may be less reluctant to do so in response to specific ques-
tions in oral testimony.
Economic Impact
It is often asserted that the export of drugs hurts the economies
of the various nations and is frequently inflationary. What is the
actual economic impact of the drug traffic in these nations? What
is the inflationary mechanism? Is the impact of the export of
drugs different than other types of exports?
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Impact of Corruption
Drug trafficking provides a strong impetus for corruption. How
significant is that factor in the decisions other nations may
make about their enforcement policies? What is the extent of
the use and abuse of various drugs in the source countries?
What role on enforcement decisions will those social and cul-
tural factors play?
Eradication, Crop Substitution, and the Peasant Cultural Context
What are the factors necessary for a successful crop substitution
program? What is the effect of crop substitution on peasant cul-
ture? In a strategy of crop substitution, is it likely that the
value of the drug crops will exceed the value of any proposed sub-
stitute crop? To what extent can illegal drug crops be planted in
new areas at a rate that may exceed the ability of a government
to eradicate? What is the status of herbicidal eradication pro-
posals? Are there feasible methods of eradication that do not
have the political problems of aerially-sprayed herbicides? How
expensive will it be to the United States to pay for these programs?
Money Laundering, Off-Shore:Banks and Tax Havens
Several Caribbean islands serve as havens for drug traffickers
because their laws facilitate secret transfer of funds to avoid
American currency controls. This hearing, in order to limit its
scope to some degree, will not focus on these issues.
The Bahamas, because of the proximity of its numerous islands
to the United States, has traditionally been a base of smuggling
to the United States. In recent years, the Bahamas has emerged
as a significant base for drug smuggling to the United States
because of the emergence of Colombia as a drug source country,
and its location north. of the passages between the Caribbean and
the Atlantic. Recently the General Accounting Office suggested
that drug enforcement regarding the Bahamas lacked strategy.
What is the relationship of the United States to the Bahamas
concerning drug enforcement? What are the prospects for further
cooperation with this close island neighbor?
BELIZE
Belize, the former British. Honduras, is the northernmost nation in
central America. Th DEA office in Guatemala, which has liaison
with Belize, successfully encouraged the Government of Belize to
allow. the Government of Mexico to eradicate marijuana fields in
Belize, most of which was destined for the U.S. market. The DEA
has initiated a program for identification of suspect vessels and
aircraft which are using Belize to transit drugs to the United
States.
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How extensive is the marijuana cultivation in Belize? What are
the details of the Belizean marijuana eradication program? Was
paraquat sprayed aerially?
BRAZIL
Brazil has an enormous undeveloped agricultural potential. Many
areas have been deforested and have been determined to be relatively
infertile for growing legitimate crops. How likely is it that
remote areas of this enormous nation may become source areas for
contraband crops?
Bolivia is one of the two major sources of coca cultivation. More
than one-half the Bolivian population regularly uses coca. The
Bolivian military which had controlled the govenrment for many years
has a reputation for corruption and direct involvement in the
cocaine trade. Just recently there was a change in government.
On April 13; Attorney General Smith signed a joint communique with
the Bolivian government that Bolivia would "undertake a program to
reduce expeditiously the excess production of coca leaves to the
level required to satisfy legitimate demand." The United States
signed a $4.3 million food-for-work project agreement to be
administered by the Agency for International Development (AID).
Early statements by the new Bolivian government had stressed the
need for vigorous action against narcotics traffickers, but stated
or implied that coca cultivation was the right of farmers and
should remain untouched. This communique reflects a gradual
recognition by Bolivian officials that coca leaf production needs
to be reduced if cocaine production and trafficking are to be
reduced.
How significant is this communique? What kinds of action by the
Bolivians can be reasonably anticipated, and how soon can it be
expected?
COLOMBIA
Colombia is the source of marijuana, cocaine and quaaludes that
are easily shipped to the United States by air and sea. For 5
years there has been extensive cooperation between the Colombian
government and the United States. Various military and law enforce-
ment.agencies have engaged in several campaigns to disrupt the
drug traffic and to suppress cultivation of marijuana. While great
achievements have been claimed, success has not been achieved.
Recently, reports have developed that coca is now being cultivated
in regions of Colombia, which is a new development. In addition,
use of marijuana, cocaine and other drugs in dramatically increasing
among the Colombian population.
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A new government was inaugurated last summer. President Reagan
and Attorney General Smith have had the opportunity to meet with
Colombian officials.
There have also been serious problems with political insurgents
in Colombia, and there have been reports that they have been
implicated in some of the drug trafficking.
What can we expect to happen in Colombia? What is the role, if
,any, of political corruption in the development and implementation
of the Colombian anti-narcotics program? It has been suggested
that the aerial spraying of herbicides may be politically diffi-
cult. What are the full dimensions of that political situation?
What role does drug crop cultivation and the revenue from drug
trafficking play in the political problems of the Colombian
government? What change, if any, in Colombian policy will be
produced by a rise in drug abuse in that nation?
In January 1982, reports began to develop that there has been
involvement of. the Castro government in trafficking in marijuana
to the United States in exchange for the cooperation of smugglers
in transferring weapons to leftist insurgents in Colombia. Accord-
ing to DEA, Raul Castro (Fidel's brother), Cuba's Minister of
Armed Forces, met in Nicaragua with an indicted drug smuggler,
Jaime Guillot Lara in 1981. In January-1982, the United States
began an effort to extradite Guillot from Mexico where he was
jailed.
Recently, a Cuban defector,) I has alleged that
upon the direction of the.Cuban government,.he distributed cocaine,
marijuana and methaqualone in New York, New Jersey and Florida, and
that he delivered between 2 million and $3 million in proceeds to
Cuban officials. Further, has told Federal officials
that 3000 other Cuban agents infiltrated the United States in the
Spring of 1980 as part of the Mariel sea-lift.
How reliable is the evidence of Cuban involvement? What is the
potential significance of Cuban involvement? What steps could
or should be taken if the Cuban government has determined upon
a policy to serve as a major transshipment platform for drugs
to the United States?
JAMAICA
Use of Cannabis, called "ganja", has been a part of the Jamaican
culture for decades. In. the 1970's Jamaican marijuana was highly
prized in the United States among drug users. One and a half years
ago, a new government took office in Jamaica that was very concerned
about the "ganja" problem and was eager to work with the Reagan
Administration. What has been accomplished in that time?. How
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much "ganja" is now being exported from Jamaica? Are there
lessons from the Jamaican experience that can be applied to
other nations?
Mexico in the 1970s was a major source of both heroin and marijuana
to the United States. A drug eradication program using aerially
sprayed herbicides was effective at dramatically reducing the
heroin exports, and fears concerning the contamination of Mexican
marijuana almost eliminated Mexico. as a source for that drug.
Mexico now is suffering an economic catastrophe. How will the
economic situation in Mexico effect the national will to continue
to prevent the cultivation and exportation of controlled substances?
Mexico has just inaugurated a new President. It is possible that
a new government that must expand the nation's exports and sources
of foreign currency may look away from drug growing and smuggling?
What are we doing to prevent that danger? Are there lessons from
the Mexican experience that can be applied to other nations?
Peru is another nation that is struggling against a Communist
insurgency. Coca use has a centuries-long tradition among the
peasants of Peru. But a great deal of coca is diverted and is a
major source of the cocaine that comes to the United States. Peru
has undertaken what is generally regarded as a good faith effort
at enforcement. Will it continue? What is the extent of corrup-
tion-in the Peruvian government and society due to the cocaine
traffic? What level of reducing export of coca leaf, cocaine
base or cocaine will be or can be considered successful?
What is the political relationship of coca control or eradication.
and the government's need to retain the allegiance of the nation's
peasants? To what extent, if any, is the traffic in illicit coca
leaf, cocaine paste, and cocaine a source of revenue to the Commu-
nist insurgents? What is the overall economic impact of the cocaine
traffic to the nation?
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