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### Viewing cable 03HANOI1549, NARCOTICS CERTIFICATION PROCEDURES FOR 2003

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
03HANOI1549 | 2003-06-20 06:22 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Hanoi

`

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

` `

    UNCLAS SECTION 01 OF 06 HANOI 001549

    SIPDIS

    STATE FOR INL/AAE; EAP/BCLTV; INR/EAP/SEA; L/LEI

    E.O. 12958: N/A
    TAGS: SNAR PREL PGOV KCRM PINS VM CNARC
    SUBJECT:  NARCOTICS CERTIFICATION PROCEDURES FOR 2003

    REF:      A.  STATE 153955         G.  Hanoi 1043
              ¶B.  STATE 99648          H.  Hanoi 353
              ¶C.  UNVIE 373            I.  Hanoi 549
              ¶D.   02 Hanoi 2980           J.  Hanoi 1504
    ¶E.   02 STATE 190339          K.  Hanoi 550
    ¶F.   HCMC 499            L.  Hanoi 117
                                       ¶M.  Hanoi 1538

    ¶1.  (U)  In response to ref a request, post is providing
    responses keyed to 2003 certification demarche points (ref
    b) as follow:

    ¶2.  (U)  Implementation of the counternarcotics Master Plan
    for 2001-2005:

    --This is an ongoing activity that continues to make slow
    but steady progress.  The United Nations Office of Drugs and
    Crime (UNODC) continues its support with a USD 276,000
    project designed to assist the GVN to finalize the plan
    (which now is extended to 2010).  The USG is contributing
    USD 100,000 to the project.  According to UNODC Resident
    Representative Dr. Doris Buddenberg, the GVN submitted its
    final draft to UNODC in January and the plan now is in the
    Office of the Government (Prime Minster's office) waiting
    for approval.  According to Dr. Buddenberg, approval should
    be forthcoming "soon," as MPS and MOLISA have resolved
    interagency issues concerning responsibilities for drug
    treatment and rehabilitation.

    ¶3.  (U)  Continued focus on narcotics-related corruption,
    including policy statements that make it clear that
    narcotics-related corruption will not be tolerated and will
    be severely punished, including the removal and prosecution
    of corrupt officials, when found:

    --The UN, law enforcement agencies, and even the GVN view
    corruption in Vietnam as an endemic problem that exists at
    all levels and in all sectors.  In its public statements,
    the GVN takes a strong stand against corruption in general,
    but has not singled out narcotics-related corruption for
    specific attention.  Colonel Bui Xuan Bien, the director of
    the Standing Office for Drug Control (SODC), confirmed that
    "any GVN official who violates laws about corruption" would
    be prosecuted.  A major criminal case (that of "Mafia" chief
    "Nam Cam" in Ho Chi Minh City) included charges of
    corruption, in addition to crimes such as murder, assault,
    gambling, etc.  Two defendants had been expelled from the
    Communist Party of Vietnam's Central Committee in 2002 in
    connection with this case; one of these had also been a Vice
    Minister of Public Security.  Another defendant had been the
    Deputy Supreme Prosecutor.  Of the 155 defendants, including
    numerous police officials, 154 were found guilty.  There
    were six death sentences and a variety of other prison
    sentences, including life imprisonment.  On the day of the
    verdict, one of Nam Cam's top syndicate officials, Nguyen
    Van Hoa, and seventeen others were arrested in Japan for
    trafficking in heroin, according to press reports.  In
    March, nine MPS officials were judged guilty for bribery.
    In June, the People's Court in Quang Nam province in central
    Vietnam sentenced the director of a state-run construction
    company to life imprisonment for embezzlement.  In another
    case, President Tran Duc Luong rejected leniency pleas from
    two former executives sentenced to death for a scheme to
    "appropriate state property through graft," according to a
    May press report.

    --Senior GVN officials continue to speak out against
    corruption.  In late January, Prime Minister Phan Van Khai
    visited MPS and emphasized the need to fight all crime and
    corruption.  In March, the Prime Minister said that
    officials who "turn a blind eye to drug-related crime will
    be punished."  In February, the Ministry of Foreign Affairs
    spokesperson said in response to a question that the GVN
    considers the fight against corruption "an important task."

    --A bilateral anti-corruption agreement with Sweden,
    providing about USD 2.7 million to fund research on socio-
    economic policy and anti-corruption measures over a three-
    year period was signed in 2002.  Under the agreement, Sweden
    is supporting a study on the "institutional framework of
    anti-corruption policies."  While the official agreement is
    with the Ministry of Planning and Investment, the actual
    partner is the Communist Party of Vietnam and, according to
    an official of the Swedish Development Corporation, the
    program is "quite sensitive."  A diagnostic study on how to
    implement the program "should be started by the end of the
    year."

    ¶4.  (U)  Developing and implementing regulations enabling
    the tools provided in the new counternarcotics law to be
    used fully and effectively to investigate major drug-
    trafficking groups:

    -- The National Assembly passed a comprehensive
    counternarcotics law on December 9, 2000, which came into
    effect on June 1, 2001.  The GVN directed MPS and other
    ministries, including the Ministry of Justice (MOJ), to
    agree on a common approach for implementation.  In addition,
    MOJ was tasked with working with MPS and other relevant
    agencies to review existing counternarcotics legal documents
    and make appropriate amendments to facilitate implementation
    of the new law.  According to Dr. Buddenberg, UNODC is
    assisting the GVN in an "ad hoc" manner in this area,
    especially concerning implementing decrees and legal
    training.  There is now a "donor coordination" group
    consisting of Sweden, Denmark and the USAID-funded Support
    for Trade Acceleration project that meets once a month to
    discuss legal issues; however, the focus is not specifically
    on narcotics.

    --Since our last report, the GVN has made public eight
    decrees related to the counternarcotics law.  These decrees:
    a.  list the narcotic substances and pre-substances;
    b.  guide the control of lawful drug-related activities in
    Vietnam;
    c.  stipulate the rehabilitation order, procedures, and
    regimes for drug addicts consigned to compulsory
    rehabilitation centers;
    d.  designate family organization and community-based
    rehabilitation;
    e.  prescribe the regime of compensation and allowances for
    individuals, families, agencies, and organizations suffering
    life, health, and property damage while participating in
    drug prevention activities;
    f.  stipulate the rewards and commendations for individuals,
    families, agencies, and organizations recording achievements
    in drug prevention; and,
    g.  assign responsibility on international cooperation in
    the field of drug prevention.  According to DEA's Hanoi
    Country Office, this decree contains no concrete formulation
    fro creating a framework to allow for information sharing
    and/or cooperative law enforcement efforts, however.  The
    decree also does not provide implementing regulations for
    international controlled deliveries, which is at least
    mentioned in the 2001 drug law.

    --An eighth (and key) decree, concerning law enforcement,
    has apparently been issued, but according to an MPS
    official, it has not been made public due to its
    "sensitivity."  According to DEA, without knowing what is in
    this decree and/or without access to MPS officers, DEA (and
    other foreign law enforcement entities) are unable to know
    what law enforcement training would be most useful.

    --A preliminary analysis by a UNODC legal official concluded
    that the decrees are "insufficient in terms of establishing
    a proper drug control legal system," however.  The decrees
    tend to focus on drug control areas, which are "generally
    less complex and controversial," the official added.  There
    is still a need for "new and proper" legal instruments in
    areas such as procedures, conditions, systems for
    investigations, international cooperation, extradition,
    controlled delivery, and maritime cooperation, according to
    the analysis.

    --Another problem is Vietnam's lack of judicial capacity.
    The UNODC's Dr. Buddenberg lamented that this issue is
    "still not adequately addressed" by the donor community.
    Without improved judicial capacity, concrete progress in
    this area "will be difficult," she opined.

    --While not directly related to the drug law, on May 29 the
    GVN issued Decree 58, which deals with the control of
    import, export, and transit of drug substances, precursors,
    additive drugs, and psychotropical substances.  According to
    the decree, only businesses authorized by the Ministries of
    Health, Industry, and Public Security can import/export drug
    substances, precursors, additive drugs and psychotropical
    substances for specific, licit purposes.  The GVN has tasked
    MPS to coordinate with other concerned ministries and
    agencies to manage and control the import/export of these
    narcotic substances.  While this decree may prove useful,
    thus far the GVN has shown a tendency not to use the laws
    already on the books in a proactive manner.

    --While the counternarcotics law allows for law enforcement
    techniques such as controlled deliveries, the GVN appears
    reluctant to engage in this area and/or meaningfully
    cooperate with DEA's Hanoi Country Office or other law
    enforcement entities in Hanoi (ref l).   In January,
    February, and March 2003, DEA informed MPS' counternarcotics
    unit (C-17) about three major heroin shipments transiting
    Vietnam.  C-17 officials did not respond or react to the DEA-
    provided information.  According to DEA, implementing
    controlled delivery techniques could have resulted in major
    seizures.  In addition, even when DEA has offered funding to
    assist in an operation, DEA's MPS counterparts have not
    cooperated.  Furthermore, the MPS continues to stick to its
    line that it is unable to share operational information with
    DEA due to "national security considerations."

    ¶5.  (U)  Increased seizures of opium, heroin, and
    amphetamine-type stimulants (ATS), followed by increased
    investigations and prosecutions of traffickers:

    --The GVN has continued to arrest and prosecute drug
    traffickers in 2003, but there is a relative decline thus
    far in 2003.  According to GVN statistics, during the first
    five months of calendar year 2003, there were 4,135 drug
    cases with 6,310 suspects arrested.  If projected over the
    entire year, it appears that case numbers will decline
    significantly - by 30 percent in the number of cases and by
    35 percent in the number of suspects arrested. (Note:  For
    past drug reports, we have routinely received such
    statistics from SODC.  Despite several requests, SODC
    declined to provide us with updated drug statistics in 2003.
    We instead obtained the information from the Ministry of
    Labor, Invalids, and Social Affairs - MOLISA, which also
    plays a role in counternarcotics activities, primarily in
    the drug treatment and rehabilitation area.  End note.)
    Concerning arrest and case statistics, DEA and other law
    enforcement entities have not changed their view that most
    arrests involve relatively low-level street dealers.

    --On the seizure front, the official press (and post - ref
    j) reported on a major seizure of 40 kilograms of heroin
    that occurred in June.  This seizure represents over 65
    percent of the total amount of heroin seized in Vietnam
    (57.4 kilograms) during 2002.  Despite this relatively
    impressive seizure, the UN's "Mini-Dublin" 2003 report noted
    that, Vietnam remains a "major transit route for drug
    traffickers, with Vietnamese traffickers demonstrating
    increased sophistication in trafficking techniques and
    concealment."  The report further stated that Vietnam is
    atypical in that very few drugs (at least until this recent
    seizure) are seized at border crossings, indicating the
    "inefficiency of Vietnam's border control capacity."

    --Attempting to address this issue, UNODC (supported
    primarily by the USG) will implement beginning in July 2003
    a project to improve law enforcement and information
    capacity within the GVN.  Concerning prosecutions, the GVN,
    according to law enforcement sources, moves fairly
    vigorously to prosecute those arrested.  However, those
    prosecuted are generally street-level dealers.  In addition,
    GVN law enforcement authorities have not demonstrated the
    will to pursue higher-level narcotics traffickers, according
    to DEA.

    --Vietnam's threshold for the death penalty is among the
    lowest in the world and drug sentences tend to be harsh.
    Possession of 100 grams of heroin or 20 kilograms of opium
    can result in the death penalty, according to SODC and press
    reports.  An April press report noted that a man and his
    wife in Vung Tau were sentenced to death for trafficking
    33.3 kilograms of opium and 0.3 kilograms of heroin.  From
    January to April 2003, 27 drug traffickers were sentenced to
    death.  On June 12, a 15-year old Australian - Vietnamese
    girl received a life sentence for attempting to bring about
    six-tenths of one kilogram of heroin into Vietnam, according
    to a press report.

    --MOLISA's statistics for seizures other than heroin also
    point to a sharp downward trend.  Projecting the January -
    May statistics over CY 2003, opium seizures may decline 48
    percent; cannabis 54 percent, and ATS by nearly 75 percent.
    Dr. Tran Xuan Sac, Director of National Policy and Planning
    in MOLISA's Department of Social Evils Prevention,
    nonetheless predicted that seizures would "probably
    increase" over the course of the year, while declining to
    explain how or why.

    ¶6.  (U)  Productive cooperation with regional neighbors,
    including Laos, the PRC, and Burma to reverse threatening
    trends in narcotics trafficking:
    --During 2003, Vietnam has continued efforts at regional
    cooperation.  According to a January 2003 "People's Police"
    press report, from 1998 to the end of 2002 the GVN sent 122
    delegations, including over 700 counternarcotics police
    officials, to overseas training and/or conferences.  Vietnam
    has existing counternarcotics MOUs with the PRC, Burma,
    Thailand, Cambodia, and Laos.  In May, Vietnam was set to
    host an "MOU Conference" in Hanoi, but the conference was
    postponed until October due to SARS.  According to SODC and
    press reports, in March MPS Deputy Minister Le The Tiem
    visited the PRC and discussed bilateral drug cooperation
    with the leadership of the PRC's Drug Control Committee.
    Tiem also traveled to Thailand to learn more about
    Thailand's drug control activities; during this visit, Tiem
    also proposed hosting a drug control conference among six
    Vietnamese northern border provinces and two PRC border
    provinces.  In February, another GVN delegation traveled to
    Thailand to attend a regional conference on controlling
    opium poppy cultivation.  In April, Vietnamese and Lao
    provincial counterparts from Nghe An and Laos' Xiengkhouang
    provinces met to improve cross-border counternarcotics
    cooperation.  In June, Vietnam hosted the ASEAN Senior
    Officials Meeting on Transnational Crime (SOMTC) and
    Counterterrorism as well as separate SOMTC+EU, SOMTC+China,
    SOMTC+3, and SOMTC+US sessions.  The meetings included a
    discussion on regional drug issues. Specifically, the
    Burmese delegation discussed the need for an enhanced
    regional approach.  According to DEA, there is no evidence
    that the attendance of GVN law enforcement officials at
    regional or international fora leads to enhanced
    cooperation, however.

    ¶7.  (U)  Continued eradication of domestic illicit poppy
    cultivation and support of crop-substitution projects to
    eliminate it completely:

    --The USG officially estimates that there are about 2,300
    hectares of opium poppy under cultivation in Vietnam.
    However, there has not been a satellite-based opium yield
    survey since 2000.  This estimate is considered high by the
    GVN, UNODC, and law enforcement sources.  The GVN estimates
    approximately 315 hectares of poppy cultivation in generally
    remote, mountainous regions.  According to UNODC's "Global
    Illicit Drug Trends (2002), "due to small production,
    Vietnam cultivation figures have been included in the `other
    Asia' category since 2000."  In 1999, the last year Vietnam
    was considered independently, UNODC estimated opium
    cultivation at 442 hectares.  Based on numerous provincial
    visits, there appears to be a sincere effort to eradicate
    poppy, when found.  However, GVN officials have admitted
    that complete eradication is unrealistic, given the
    remoteness of mountainous areas in the northwest and extreme
    poverty among ethnic minority populations who still use
    opium for medicinal purposes.  Regrowth in remote areas,
    particularly in the northwest, remains a small, but
    apparently persistent problem, as does limited cannabis
    growth in areas near the Cambodian border.  According to
    SODC's Bien, the GVN eradicated 124 hectares of opium poppy
    during the first quarter of CY 2003, virtually all of it in
    the northwest.  Bien confirmed that "when we find poppy, we
    eradicate it."

    --Regarding crop substitution, there is a major UNODC
    project (with significant USG support) ongoing in the Ky Son
    district of Nghe An province, one of the drug "hotspots" in
    northern Vietnam.  This project, currently in its second
    phase, includes a crop substitution/alternative development
    component, where various types of fruit trees and other
    enterprises, such as bee raising, have been implemented in
    areas formerly dedicated to poppy.  UNODC's Buddenberg
    viewed the first phase as "successful," with an increase in
    agricultural production and corresponding drop in drug
    activity.  Based on an Embassy monitoring visit in April
    (ref g), there is progress in the livestock and agricultural
    models (the focus of USG assistance); however, the selection
    process of those receiving project assistance was not clear,
    a problem that UNODC is now addressing.  A similar project
    planned in Son La province, another drug area along the Lao
    border, will not proceed.  Prior to the proposed project
    signing, the GVN requested an alternate project location and
    more autonomy in administering the project.  UNODC declined
    to meet the GVN's demands; after deliberation, UNODC decided
    not to proceed.

    --In addition to Ky Son, the GVN's Ministry of Agriculture
    and Rural Development (MARD) has continued to support
    projects in various provinces.  The GVN, through MARD,
    independently supports crop substitution projects in other
    provinces, including Hoa Binh, Yen Bai, Ha Giang, Cao Bang,
    and Lang Son.  The GVN has tasked MARD to develop a national
    crop substitution proposal to include in the GVN's 2001-2005
    Master Plan.  To avoid indirectly encouraging poppy
    cultivation through subsidies for eradication, the GVN has
    placed all crop substitution subsidies under national
    programs to alleviate poverty in poor, mountainous regions.

    ¶8.  (U)  Continued focus on creating a legal framework to
    address money laundering and other forms of financial
    crimes:

    --At present, money laundering is not considered a major
    issue in Vietnam because of the state-controlled banking
    system and high transaction costs.  However, partly due to
    the work on terrorist financing, over the last year there
    has been a growing awareness and concern among State Bank of
    Vietnam (SBV) officials on the issue of money laundering and
    financial crimes in general.  SBV officials have begun to
    work with the U.S., the IMF, and other donors to identify
    and address weaknesses in their banking system.  However,
    without major reform (including greater transparency), it
    will be difficult for sufficient safeguards to be
    introduced.  According to a 2003 UNODC report, "Vietnam is
    obviously ill equipped to fight the escalation in financial
    crimes unfolding in most of Southeast Asia."  While the
    State licenses wholly foreign-owned and joint venture state-
    private banks to operate alongside the State commercial
    banks, their market penetration and asset base are small.
    Foreign exchange currency controls for private and joint
    venture banks are considered to be strict.  However, the
    banking system in Vietnam is segmented and lacks real,
    transparent, and easily verifiable controls.  Although banks
    are under the supervision of the State Bank, that
    supervision is minimal.  Vietnam is in the process of
    implementing banking reform as part of their World Bank and
    IMF loans, and some of that reform is relevant to these
    issues (increased transparency, more effective regulation,
    and overall stability of the banking system).  It will be
    critical that reform of the banking system is accompanied by
    law enforcement training regarding financial crimes.

    --There is currently no specific law in Vietnam regarding
    money laundering, although it is mentioned in the
    comprehensive counternarcotics law very generally, but
    internal discussion has begun on the need to draft specific
    regulations on this issue.  According to UNODC, the GVN is
    aware of the potential problem and "trying to take
    preventive measures" such as inviting international experts
    and participating in ILEA training.  To that end, post had
    lined up several appropriate State Bank officials to attend
    ILEA-sponsored training on financial crimes in May;
    unfortunately, Vietnam's participation in the course was
    cancelled by ILEA due to SARS.

    ¶9.  (U)  Increasing efforts to support drug awareness and
    prevention, demand reduction, and treatment of drug users
    and addicts:

    -- The GVN views drug awareness and prevention as a
    significant objective in its fight against drugs as well as
    an integral part of its efforts fully to comply with the
    1988 UN Drug Convention.  The GVN has continued a steady
    drumbeat of anti-drug propaganda, culminating in June's drug
    awareness week (the week of June 23).  If last year's
    activities are any guide, during the week youth and mass
    organizations will engage in various activities to spread
    the anti-drug message.  These include art contests,
    speeches, and meetings.  Within the past few months, state-
    controlled television has begun a weekly program called "SOS
    Drugs" and has been airing a series of anti-heroin spots.
    According to the UNODC's Buddenberg, Vietnam and UNODC will
    be signing an agreement to implement a demand reduction
    project (supported mainly by Italy) "within the next few
    months."

    -- By the end of 2002, the GVN admitted officially to
    142,000 registered addicts, although the UN and other
    agencies suspect the actual number is substantially higher.
    Even that official figure is 25 percent higher than 2001.
    MOLISA is the GVN ministry tasked with providing drug
    treatment services.  Since 2001, emboffs have visited most
    drug treatment centers in northern Vietnam as well as some
    in the south.  According to SODC, there are 73 centers at
    the provincial level, which have a capacity of between 50 to
    3,000 addicts each.  Provincial authorities run most
    centers, but some are supported by mass organizations, such
    as the Youth Union.  Drug treatment centers range from the
    most basic to relatively modern.  Most suffer from a lack of
    physical and material resources.  The addict population is a
    combination of those who enter voluntarily and others who
    are undergoing "compulsory" treatment.  Drug treatment, as
    with other public sector services in Vietnam, suffers from a
    lack of resources.  However, the GVN has continued efforts
    to expand drug treatment in 2003.  According to a March
    press report, of 142,000 addicts, approximately 48,000 had
    undergone detoxification treatment.

    --Some drug treatment centers suffered some escapes, likely
    due in part to a 2002, GVN decree that mandated minimum
    stays of one year.  No such escapes have been reported in
    2003, however.  Vocational training in the centers is
    uneven, ranging from fairly good to nonexistent.  This is
    mainly due to a lack of resources.  Lack of resources has
    also had a negative impact on the GVN's plan to improve drug
    treatment in one of Vietnam's "hotspot" provinces, Nghe An.
    A 700-bed center was scheduled to fully open in early 2003,
    but due to funding constraints, this has been delayed until
    the end of 2003, according to MOLISA's Dr. Sac.  Presently,
    there are "only a few addicts" staying in the partially
    completed facility, he added.

    --In addition to drug treatment centers, those with less
    severe addictions may be treated under a community-based
    treatment scheme (ref I).  Despite apparently good
    intentions, it appears that implementation is rather thin
    and uneven, with "peer pressure" the main component of
    treatment following detoxification.  Community-based
    treatment nonetheless at least provides addicts with a
    supportive infrastructure (and limited vocational training)
    that would otherwise not be available.

    --During its June 2003 session, the National Assembly
    approved a five-year pilot project on post-treatment
    vocational training developed by the HCMC People's
    Committee.  The one to three-year program is compulsory for
    those judged at high risk for returning to drugs.  It is
    voluntary for others who have finished their compulsory
    treatment and judged less at risk.  According to Nguyen
    Hoang Mai of the National Assembly's Social Affairs
    Committee, the goal of the program is to try to reduce the
    relapse rate (generally estimated at about 80 percent,
    similar to western countries) by providing recovering
    addicts with more skills that will enable them to assume
    "productive lives after treatment."  The pilot project, set
    to begin on August 1, will be implemented in HCMC (where the
    relapse rate may be as high as 90 percent), and other
    provincial cities, according to press reports.

    ¶10.  (U)  Signing a narcotics agreement with the United
    States to permit even closer counternarcotics cooperation
    between Vietnam and the United States:

    --We are unable to report progress on this front during
    ¶2003.  The GVN has yet officially to respond to the
    Department's October 2002 non-paper, despite repeated
    promises to do so.  The GVN apparently harbors concerns over
    concerning human rights, taxation, and the training
    participant certification regarding non-drug trafficking
    (refs k and m).  The MFA has also unofficially expressed
    concern over what officials have termed the "small size" of
    the projects attached to the draft Letter of Agreement
    (LOA).  Senior GVN officials and official documents continue
    to claim that signing the agreement remains a priority; this
    view has not thus far translated to meaningful progress.
    Both countries nonetheless agree in principle that an LOA
    would enhance cooperation and allow the bilateral
    relationship to develop further.
    BURGHARDT

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