US embassy cable - 04THEHAGUE3320

UNCLAS SECTION 01 OF 08 THE HAGUE 003320 
 
SIPDIS 
 
DEPT FOR INL, INL/T, EUR/ERA, EUR/UBI 
DOJ FOR OIA, AFMLS, NDDS 
TREASURY FOR FINCIN 
USEU FOR WAGNER AND DOJ 
DEA HQS FOR OILS AND OFFICE OF CHEMICAL DIVERSION 
 
E.O. 12958: N/A 
TAGS: SNAR, PREL, PGOV, KCRM, NL 
SUBJECT: 2004 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT 
(INCSR): THE NETHERLANDS - PART 1, DRUGS AND CHEMICAL CONTROL 
DIVERSON CONTROL 
 
REF: (A) STATE 249035; (B) THE HAGUE 2052; (C) THE HAGUE 1784 
 
--------------- 
I. Summary 
--------------- 
1.  The  Netherlands  continues to be a  significant  transit 
point  for  drugs  entering Europe (especially  cocaine),  an 
important   producer   and  exporter   of   synthetic   drugs 
(particularly Ecstasy - MDMA), and a substantial consumer  of 
most   illicit   drugs.  U.S.  law  enforcement   information 
indicates   the  Netherlands  still  is  by  far   the   most 
significant  source  country for Ecstasy  in  the  U.S.   The 
current  Dutch  center-right coalition  has  made  measurable 
progress  in  implementing a five-year  strategy  (2002-2006) 
against production, trade and consumption of synthetic drugs. 
According  to the public prosecutor's office, the  number  of 
Ecstasy  tablets seized in the U.S. that could be  linked  to 
the Netherlands dropped to 1 million in 2003 from 2.5 million 
in  2002.  The  National  Criminal  Investigation  Department 
("Nationale  Recherche"), which was set  up  to  enhance  the 
efficiency  and effectiveness of criminal investigations  and 
international  joint  efforts against narcotics  trafficking, 
officially  began  operations in  January  2004.  Operational 
cooperation  between U.S. and Dutch law enforcement  agencies 
is  excellent,  despite  some  differences  in  approach  and 
tactics.  This  was  reflected by the several  trips  to  the 
Netherlands  by the DEA Administrator in 2004.   Furthermore, 
in  October  2004, the Netherlands became the first  European 
country  to  sign an MOU with the El Paso Information  Center 
(EPIC) to participate in law enforcement information sharing. 
Dutch popular attitudes toward soft drugs remain tolerant  to 
the point of indifference.  The Government of the Netherlands 
(GONL)  and  the public view domestic drug use  as  a  public 
health  issue first and a law enforcement issue second.   End 
summary. 
 
-------------------------- 
II. Status of Country 
-------------------------- 
2.   The  central  geographical position of the  Netherlands, 
with    its    modern   transportation   and   communications 
infrastructure,  the  world's  busiest  container   port   in 
Rotterdam  and  one of Europe's busiest airports,  makes  the 
country an attractive operational area for international drug 
traffickers and money launderers.  Production of Ecstasy  and 
marijuana  is  significant;  there  is  also  production   of 
amphetamines and other synthetic drugs.  The Netherlands also 
has  a  large (legal) chemical sector, making it an opportune 
location   for  criminals  to  obtain  or  produce  precursor 
chemicals used to manufacture illicit drugs. 
 
--------------------------------------------- ------- 
III. Country actions against drugs in 2004 
--------------------------------------------- ------- 
Policy Initiatives 
-------------------- 
3.    Major  Dutch  government  policy  initiatives  in  2004 
include: 
 
4.   In  January  2004, the National Crime Squad  ("Nationale 
Recherche"  or NR) officially started functioning.   The  new 
department  combines the current five core police teams,  the 
national  criminal  investigation team,  the  Unit  Synthetic 
Drugs  (USD),  the Trafficking in People Unit, and  the  five 
Ecstasy teams.  The NR, which is part of the National  Police 
Services  (KLPD) and which comes under the authority  of  the 
National  Public Prosecutors' Office, gives top  priority  to 
international  cooperation  in the  fight  against  organized 
crime,  in  particular the production of and  trafficking  in 
synthetic drugs. 
 
Cannabis 
----------- 
5.   On  July  1,  Dutch Parliament approved the  April  2004 
"Cannabis  Letter" from the Ministers of Health, Justice  and 
Interior,  which  included  an  "Action  Plan  to  Discourage 
Cannabis  Use"  (ref  C).  According  to  the  letter,  Dutch 
coffeeshop  policy  has  not led to  a  significantly  higher 
cannabis use since Dutch use is average compared to  that  of 
other EU countries.  [In fact, the number of coffeeshops  has 
shrunk  by almost 30% over the past few years.] The Ministers 
argued  the  distinction  between hard  and  soft  drugs  had 
worked: hard drugs were seldom found in coffeeshops.   Still, 
they  were  concerned about the health risks of cannabis  use 
and  the  sharp  rise in the THC content.   The  Action  Plan 
included the following initiatives: 
 
--  An experiment with the introduction of special coffeeshop 
passes  for  Dutch  residents in  order  to  ban  foreigners. 
Justice  Minister Donner said the ban was in  line  with  the 
stricter EU drug regulations.  Donner wants to start a  trial 
project with the special passes in Maastricht (close  to  the 
German  and Belgian borders).  If successful, the experiment, 
which will limit the purchase soft drugs in Dutch coffeeshops 
to Dutch nationals, will be expanded; 
--  An  investigation into possible risks of cannabis with  a 
high  THC  content.  (In 2003, the THC content of Dutch-grown 
cannabis ("Nederwiet") was 18% and Dutch hashish 35.8%.)   If 
research should prove use of high-level THC cannabis involved 
serious health risks, cannabis with high THC levels could  be 
placed on List 1 of the Opium Act, making it an illegal  hard 
drug; 
--  Stricter licensing criteria with respect to the  distance 
between coffeeshops and schools; and 
-- Intensified controls on cannabis cultivation. 
 
6.  The 2003 National Drug Monitor, published in March  2004, 
showed  the number of recent (last-month) cannabis  users  in 
the Dutch population over the period 1997-2001 rose from some 
326,000  to 408,000, or 3 percent of the Dutch population  of 
12  years  and  older (of a total population of 16  million). 
Life-time   prevalence  (ever-use)  of  cannabis  among   the 
population  of 12 years and older rose from 15.6  percent  in 
1997  to  17  percent  in 2001.  The average  age  of  recent 
cannabis  users  is  28  years.   According  to  the  Trimbos 
Addiction Institute, cannabis use among young people ages 12- 
18  dropped in 2003: recent (last-month) use for boys dropped 
to  10 percent, which was almost one-third less than in 1966. 
Last-month cannabis use by girls stabilized at 7 percent. 
 
7.   According  to  a  December 10,  2004  letter  by  Health 
Minister  Hoogervorst to the Second Chamber, legal  sales  of 
medicinal  cannabis by pharmacies have largely failed.   Only 
some  1,000  to  1,500  patients are buying  the  government- 
controlled  cannabis, which is one-tenth  of  the  number  of 
expected customers.  The disappointing sales, which will cost 
the Ministry almost 400,000 euros in 2004, are attributed  to 
reluctance  among doctors to prescribe and the higher  prices 
of  the  "state wiet."  Since March 2003, doctors are allowed 
to  prescribe their patients medicinal cannabis.  The  Health 
Ministry's  Bureau for Medicinal Cannabis buys  the  cannabis 
from two official growers, controls quality and organizes the 
distribution.    According  to  the  Health  Ministry,   more 
scientific  research should improve the  image  of  medicinal 
cannabis. 
 
Cocaine Couriers 
--------------------- 
8.   Justice Minister Donner touted the Schiphol airport 100% 
control  measure,  initiated in December 2003  to  stop  drug 
trafficking   into  the  Netherlands  from  the   Netherlands 
Antilles, Aruba, Suriname, and later Venezuela, as a success, 
citing declining cocaine seizures at Schiphol as an indicator 
(ref  B).   According to the program's sixth progress  report 
published  December  16, 2004, 3,313  cocaine  couriers  were 
arrested in the first eleven months of 2004, all of whom  had 
been blacklisted.  739 kilos of cocaine were seized from  the 
bodies of the couriers, on top of 3,451 kilos hidden in other 
materials.  An additional 1,675 kilos of cocaine were  seized 
at Schiphol and 565 couriers arrested during regular controls 
(coming from countries other than those targeted in the  100% 
control program).  Over the 11-month period, a total of 1,545 
kilos  of cocaine were found at Schiphol in freight, of which 
713  kilos were discovered through the 100% control  program. 
On average, two couriers are found per flight now (initially, 
there  were an estimated 80-100 couriers per flight).  Donner 
noted  the  primary  goals of his policy, seizing  drugs  and 
blacklisting  couriers, have proved much more effective  than 
simply  arresting  large  numbers of  "small"  couriers.   He 
planned  to continue the policy for the time being, including 
the  "temporary" measure of turning back "bolita  swallowers" 
carrying   less  than  three  kilos  ("catch  and  release"). 
Although cocaine seizures in Rotterdam port have been  rising 
this  year, the report stated it was too early to draw a link 
with  the  100% Schiphol control program, noting seizures  at 
the  port  fluctuate  from year to year,  just  as  in  other 
European ports. 
 
Heroin Experiment 
------------------------ 
9.   In  June  2004,  the Cabinet approved expansion  of  the 
experiment, under which heroin is medically prescribed  to  a 
group of seriously ill and chronic addicts for whom all other 
forms  of  treatment  have failed.   The  number  of  persons 
receiving such "medical treatment" will be increased from 300 
currently  to  1,000  over  15  major  cities  (up  from  six 
currently).   For  each participant a treatment  contract  is 
drawn   up  stating  improvements  required  within  a  year. 
Government funding to the project of 5 million euros per year 
will be raised by one million in 2005. 
 
Ecstasy 
--------- 
10.    In  June  2004,  Justice  Minister  Donner  officially 
launched  an  information campaign to keep potential  Ecstasy 
traffickers  from smuggling to other countries.  The  Justice 
Ministry has opened a website with information about  foreign 
prison sentences and prison conditions. 
 
Accomplishments 
---------------------- 
11.   A major accomplishment was the drafting of the EU 2005- 
2008  Drugs  Strategy during the Dutch EU presidency  in  the 
second  half of 2004.  In October 2004, the Dutch  Government 
signed  a joint cooperative agreement with the Government  of 
China  concerning  precursor  chemical  investigations.   The 
agreement  pledges both countries to cooperate  on  precursor 
chemical   investigations.   The  GONL  also   approved   the 
stationing  of  a  police drug liaison officer  in  China  to 
facilitate  law  enforcement  cooperation.   In  addition  to 
working  directly  with the Chinese, the  Netherlands  is  an 
active  participant  in the INCB/PRISM  project's  taskforce. 
Minister  Donner said on March 31, 2004 the first  assessment 
report  of  the  five-year (2002-2006)  Ecstasy  action  plan 
proved very successful. 
 
Law Enforcement Efforts 
--------------------------------- 
12.   Overall  the Health Ministry coordinates  drug  policy, 
while  the  Ministry  of  Justice  is  responsible  for   law 
enforcement.  Matters relating to local  government  and  the 
police are the responsibility of the Ministry of Interior. At 
the  municipal  level,  policy is coordinated  in  tripartite 
consultations between the mayor, the chief public  prosecutor 
and the police. 
 
13.   The  Dutch  Opium  Act punishes possession,  commercial 
distribution, production, import, and export of  all  illicit 
drugs.   Drug  use,  however, is not  an  offense.   The  act 
distinguishes  between "hard" drugs that have  "unacceptable" 
risks  (e.g.,  heroin, cocaine, Ecstasy),  and  "soft"  drugs 
(cannabis   products).   Trafficking  in  "hard   drugs"   is 
prosecuted  vigorously and dealers are subject  to  a  prison 
sentence  of 12 years.  When this takes place on an organized 
scale, another one-third of the sentence is added (up  to  16 
years).   Sales of small amounts of cannabis products  (under 
five  grams)  are  "tolerated" (i.e.,  not  prosecuted,  even 
though technically illegal) in "coffeeshops" operating  under 
regulated  conditions  (no minors  on  premises,  no  alcohol 
sales, no hard drug sales, no advertising, and not creating a 
"public nuisance"). 
 
14.  Dutch  police teams and National Prosecutors  give  high 
priority to combating drug trafficking.  DEA agents stationed 
with  Embassy  The  Hague  have  close  contacts  with  their 
counterparts  in the Netherlands. Beginning in FY  2002,  the 
Dutch  assigned  Dutch liaison agents to Miami,  Florida  and 
Washington,  D.C.  to  improve  coordination  with  U.S.  law 
enforcement agencies. 
 
15.   In   September  2004,  the  Dutch  joined   the   Joint 
Intelligence  Working Group (JWIG) in Washington  D.C.   This 
group   representing  six  countries  meets  to  share   drug 
intelligence  and  assist in coordinating international  drug 
trafficking investigations. In October 2004, the KLPD  signed 
a  Memorandum of Understanding (MOU) with the DEA and the  El 
Paso Intelligence Center (EPIC) in order to enhance police-to- 
police     intelligence    sharing    on    narcotics-related 
investigations. 
 
16.  All  foreign  assistance requests are sent  to  the  DIN 
(International  Network Service).  The DIN has  assigned  two 
liaison   officers  to  assist  only  DEA.  Since   the   new 
reorganization,  the DIN has allowed DEA  and  other  liaison 
officers to contact one of the five regional offices directly 
with   requests.    This  policy  has  allowed   for   better 
coordination  during  ongoing enforcement  actions,  such  as 
controlled  deliveries. Due to Dutch law enforcement  policy, 
the   prosecutors   still   control   all   aspects   of   an 
investigation.  Dutch  police  officers  still  need  to  get 
prosecutor concurrence to share police-to-police information. 
This policy often hampers quick sharing of information, which 
can  be  used proactively in an ongoing investigation.   Many 
controlled  delivery requests sent to  the  DIN  by  DEA  are 
turned  down  due  to  lack  of manpower.   In  November  and 
December  2004,  however, the Dutch approved four  controlled 
delivery  requests  (including  one  involving  70  kilos  of 
cocaine  which resulted in the arrest of six suspects).   The 
vast  majority  of  these  controlled  deliveries  are  small 
amounts  of  cocaine (less than five kilograms) contained  in 
parcels  being  sent  from South America  or  the  Caribbean. 
Since  the initiation of the 100% controls on inbound flights 
from the Caribbean, there has been a serious reduction in the 
amount  of  outbound  couriers arrested  at  Schiphol.   This 
reduction  is  due in part to the amount of  law  enforcement 
capacity  required to conduct the 100% inbound  checks.   The 
amount of flights targeted for outbound checks has decreased. 
 
Corruption 
-------------- 
17.   The  Dutch government is committed to fighting national 
and  international  corruption.  It  does  not  encourage  or 
facilitate illicit production or distribution of narcotic  or 
psychotropic  drugs  or other controlled substances,  or  the 
laundering  of  proceeds from illegal drug transactions.   No 
senior   official  of  the  Dutch  government   engages   in, 
encourages   or   facilitates  the  illicit   production   or 
distribution  of such drugs or substances, or the  laundering 
of proceeds from illegal drug transactions.  Press reports of 
low-level law enforcement corruption appear from time to time 
but the problem is not believed to be widespread or systemic. 
An  investigation  in 2004 by the special Schiphol  CargoHarc 
drug   team,  comprised  of  Kmar  military  police,   fiscal 
investigation/control service (FIOD-ECD) and Customs, led  to 
the  arrest  of  fourteen  baggage  handlers  and  four  shop 
assistants  accused  of smuggling drugs through  uncontrolled 
airport channels.  To address concerns about the influence of 
drug trafficking on police, Customs and other officials,  the 
Justice  Ministry  is  funding  a  study  on  the  extent  of 
corruption in the Netherlands that will be completed by  mid- 
2005. 
 
18.   The  national prosecutor's office confirmed in November 
2004  a criminal organization involved in large-scale cocaine 
smuggling and money laundering had invested part of its  drug 
profits in Air Holland, a Dutch charter airline flying mostly 
to  the  Netherlands Antilles, which went bankrupt  in  April 
2004. 
 
Agreements and Treaties 
------------------------------- 
19.  The Netherlands is party to the 1988 UN Drug Convention, 
the  1971 UN Convention on Psychotropic Substances, the  1961 
Single  Convention on Narcotic Drugs, and the  1972  Protocol 
amending  the  Single Convention. It has  ratified  the  1990 
Strasbourg  convention on money laundering and  confiscation. 
The  U.S.  and the Netherlands have agreements on extradition 
and  mutual legal assistance (including asset sharing).   The 
Netherlands  has enacted legislation on money laundering  and 
controls on chemical precursors.  The Netherlands is a member 
of  the UN Commission on Narcotics Drugs and the major donors 
group  of the UNODC.  It is a member of the Financial  Action 
Task Force (FATF) and the Caribbean Action Task Force (CATF). 
The  Netherlands is a leading member of the Dublin  Group  of 
countries   coordinating   drug-related   assistance.     The 
Netherlands  ratified  the  UN  Convention  on  Transnational 
Organized  Crime on May 26, 2004, but still needs  to  ratify 
two of its Protocols. 
 
Cultivation and Production 
---------------------------------- 
20.   About 75 percent of the Dutch cannabis market is Dutch- 
grown marijuana ("Nederwiet"), although indoor cultivation of 
hemp  is  banned, even for agricultural purposes.  A November 
2003   national  police  report  of  the  Dutch  drug  market 
estimated the Netherlands has between 17,000-22,000  cannabis 
plantations   producing   about   68,000-99,000   kilos    of 
"Nederwiet."    Although the Dutch government has  given  top 
priority  to the investigation and prosecution of large-scale 
commercial  cultivation of Nederwiet,  tolerated  coffeeshops 
appear  to create the demand for such cultivation.  According 
to  the  Government's "Cannabis letter," about  half  of  the 
anonymous  crime  reports received annually  relate  to  drug 
trafficking,  particularly cannabis  cultivation,  indicating 
serious public concern. 
 
21.  The Netherlands remains one of the largest producers  of 
synthetic  drugs,  although the INCB has  noted  a  shift  to 
Eastern   Europe.   According  to  a  report  by  the   South 
Netherlands Core Team/Unit Synthetic Drugs (KTZ/USD) and  the 
five  Dutch  Ecstasy  teams (all of  them  now  part  of  the 
National  Crime  Squad), some 214 suspects were  arrested  in 
2003  from  105  in 2002.  Together the teams  seized  11,453 
liters  of  chemical precursors compared to 10,801 liters  in 
2002.  They also completed 33 investigations from 21 in 2002. 
The  total  number of Ecstasy tablets with an  alleged  Dutch 
connection  confiscated by U.S. authorities more than  halved 
to  one  million  tablets  in 2003  compared  to  2002.   The 
seizures  of drugs around the world that could be related  to 
the  Netherlands  involved almost  13  million  MDMA  tablets 
(2002:  24.6  million)  and more than 871  kilos  (2002:  910 
kilos)  of  MDMA powder and paste.  MDMA (powder  and  paste) 
seizures  in  the Netherlands in 2003 dropped to  435  kilos, 
about 50 percent less than in 2002, and the number of Ecstasy 
tablets  seized dropped 20 percent to more than 5.4  million. 
The number of dismantled production sites for synthetic drugs 
dropped to 37 from 43 in 2002.  Of the 37, some 11 were found 
in   residential  areas.   The  KTZ/USD  reported   increased 
amphetamine seizures in 2003 from 2002. 
 
Drug Flow/Transit 
------------------------ 
22.   The Netherlands remains an important point of entry for 
drugs  to  Europe,  especially  cocaine.   According  to  the 
National  Crime  Squad, an estimated 40,000-50,000  kilos  of 
cocaine  are  smuggled annually into the  Netherlands,  about 
20,000 kilos via Schiphol and the remainder via seaports  and 
across the road from Spain (Dutch cocaine use is estimated at 
4,000-8,000  kilos  annually).   The  Dutch  government   has 
stepped  up  border  controls to combat the  flow  of  drugs, 
including the Schiphol Action Plan. The government  has  also 
expanded  the  number of container scanners in  the  port  of 
Rotterdam and at Schiphol airport.  Controls of highways  and 
international   trains   connecting   the   Netherlands    to 
neighboring countries have also been intensified. 
 
Money Laundering 
----------------------- 
23.    The  Netherlands  participates  in  the  FATF.   Forty 
separate anti-money laundering measures recommended  by  FATF 
have  been integrated in the financial sector.  Additionally, 
legislation  making money laundering a separate, stand-alone, 
offense became effective in 2002.  See septel. 
 
Asset Seizures 
----------------- 
24.  The Dutch have signed the Strasbourg Convention and have 
drawn  up national legislation to enable courts to confiscate 
the  proceeds  of  drug-related  crime.   The  U.S.  and  the 
Netherlands have an asset seizure agreement. 
 
Extradition and Mutual Legal Assistance Treaty 
--------------------------------------------- -------------- 
25.   The  U.S.  and  the Netherlands have fully  operational 
extradition  and  mutual  legal assistance  agreements.  Some 
defense  attorneys,  however,  have  argued  successfully  to 
judges  the U.S. judicial protections are inadequate, slowing 
the  pace  of extradition in cases involving Ecstasy dealers. 
Using  differences  in our legal systems  and  misconceptions 
about  the  American criminal justice system, they  criticize 
(1)  the  U.S. plea bargaining system which they  argue  puts 
pressure  on innocent suspects to confess; and (2) delays  in 
repatriation  to  the  Netherlands of  previously  extradited 
Dutch  citizens who were then convicted in the U.S.  and  are 
now  seeking  to  serve their terms in the Netherlands.   The 
Hague  Appellate Court recently ruled, however, there was  no 
evidence  to  sustain these allegations.  Since that  ruling, 
defense attorneys have been unable to use these arguments  to 
prolong cases. 
 
Demand Reduction 
------------------------ 
26.   The Netherlands has a wide variety of demand and  harm- 
reduction  programs,  reaching  about  80  percent   of   the 
country's 26,000-30,000 opiate addicts.  The number of opiate 
addicts is low compared to other EU countries (2.6 per  1,000 
inhabitants);  the number has stabilized over  the  past  few 
years;  the  average age has risen to 40; and the  number  of 
overdose deaths related to opiates has stabilized at  between 
30 and 50 per year.  Needle supply and exchange programs have 
kept  the  incidence of HIV infection among intravenous  drug 
users  relatively low.  Of the addicts known to the addiction 
care organizations, 75 percent regularly use methadone. 
 
27.   According to the 2003 National Drug Monitor,  the  out- 
patient  treatment centers registered some 26,605 drug  users 
seeking  treatment for their addiction in 2000,  compared  to 
26,333.   The  number of cannabis and opiate addicts  seeking 
treatment  has  stabilized at 3,443 and 15,544, respectively. 
Statistics from drug treatment services show a sharp increase 
in  the  number  of people seeking help for cocaine  problems 
(representing  an  increase of 49 percent  between  1994  and 
2000).   Two  out  of three people seeking help  for  cocaine 
problems  are crack cocaine users.  The average age  of  drug 
"clients"  was  39  years.   Total costs  of  drug  treatment 
programs are put at 100 million dollars. 
 
28.    Although   more  recent  data  about  drug   use   are 
unavailable,  drug experts have noted a significant  drop  in 
Ecstasy use, while cocaine use appears to be going up. 
 
29.   Drug  use among the general population of 12 years  and 
older,  1997  and 2001 (life-time (ever) use  and  last-month 
use) 
                Life-time use           Last-month use 
                 1997      2001         1997      2001 
 
Cannabis         15.6      17.0          2.5       3.0 
Cocaine                 2.1      2.9          0.2       0.4 
Amphetamine             1.9      2.6          0.1       0.2 
Ecstasy                   1.9        2.9                  0.3 
0.5 
Hallucinogens           1.8      1.3          0.0       0.0 
-of which LSD           1.2      1.0           --        -- 
Mushrooms          1.6      2.6          0.1       0.1 
Heroin                      0.3          0.4              0.0 
0.1 
(Source: National Prevalence Survey, Center for Drug Research 
(Cedro), University of Amsterdam) 
Prevention 
------------- 
30.  Drug prevention programs are organized through a network 
of  local,  regional and national institutions.  Schools  are 
targeted  in  efforts to discourage drug use, while  national 
campaigns  are  conducted  in the mass  media  to  reach  the 
broader  public. The Netherlands requires school  instruction 
on  the  dangers of alcohol and drugs as part of  the  health 
education  curriculum. The Netherlands  Institute  of  Mental 
Health and Addiction (the Trimbos Institute) has developed  a 
project  in the field of alcohol and drugs in the context  of 
teaching "healthy living" in classrooms.  About 75 percent of 
Dutch secondary schools participate in the project.  In March 
2004,  the Health Ministry and the Trimbos Institute launched 
a major cannabis information campaign warning young people in 
the  12-18  age  group about the health risks.   The  24-hour 
national  Drug Info Line of the Trimbos Institute has  become 
very popular. 
 
------------------------------- 
IV. U.S. Policy Initiatives 
------------------------------- 
Bilateral Cooperation 
--------------------------- 
31.  Despite  excellent operational cooperation between  U.S. 
and  Dutch law enforcement agencies, concern remains over the 
Netherlands'  role as the key source country for MDMA/Ecstasy 
entering  the U.S.  Embassy The Hague continues to  make  the 
fight   against  the  Ecstasy  threat  one  of  its   highest 
priorities. Although the Dutch and U.S. agree on the goal, we 
differ  over  which  law  enforcement  methodology  is   most 
effective in achieving it.  The Dutch continue to resist  use 
of  controlled deliveries and criminal infiltrants  in  their 
investigations of drug traffickers.  They are also  reluctant 
to   admit  the  involvement  of  large,  international  drug 
organizations  in the local drug trade and do not  use  their 
asset  forfeiture  rules  often.  The  third  bilateral   law 
enforcement  talks,  which were held in The  Hague  in  March 
2004, resulted in additional agreements to the "Agreed Steps" 
list  of  action  to enhance law enforcement  cooperation  in 
fighting drug trafficking. 
 
32.   The U.S. and the Netherlands cooperate closely  on  law 
enforcement   activities  throughout  the  Kingdom   of   the 
Netherlands.   The U.S. is also working with the  Kingdom  to 
assist  Aruba  and  the  Netherlands Antilles  in  countering 
narcotics trafficking.  The 10-year FOL agreement between the 
U.S.  and  the  Kingdom  for  the  establishment  of  forward 
operating locations on Aruba and Curacao became effective  in 
October 2001. 
 
33.   Since 1999, the Dutch Organization for Health  Research 
and  Development (ZonMw) has been working with NIDA on  joint 
addiction research projects. 
 
The Road Ahead 
--------------------- 
34.   We   expect   U.S.-Dutch  bilateral   law   enforcement 
cooperation  to intensify, building on the successful  visits 
of  the  DEA Administrator to the Netherlands in  2004.   The 
Dutch government's Ecstasy Action Plan should further counter 
narcotics efforts.  The Dutch synthetic drug unit, which  now 
is  part  of the National Crime Squad, will continue to  make 
concrete  progress.  The bilateral "Agreed  Steps"  agreement 
will    certainly   boost   cooperation   on    international 
investigations, including Ecstasy and money laundering cases. 
We anticipate increased cooperation among the U.S., China and 
the  Netherlands on precursor chemicals once the  Dutch  drug 
liaison officer is stationed in China (early 2005).  We  have 
also  noticed improved and expedited handling of  extradition 
requests. 
 
------------- 
V. Statistics 
------------- 
35.  Drug Seizures                     2002       2003 
----------------------                                   ---- 
---- 
Heroin (kilos)              1,122           417 
Cocaine (kilos)                  7,968       17,560 
 
Ecstasy (tablets)              6,878,167     5,420,033 
Ecstasy (kilos)                    849            435 
Ecstasy     production     sites                           43 
37 
Amphetamine (kilos)                     481               843 
Amphetamine (tablets)           1,028           14,000 
LSD (doses)                    355            - 
LSD       (tablets)                                         - 
1,642 
Methadone (tablets)        9,446           57,430 
Cannabis resin (kilos)              32,717           10,719 
Marijuana (kilos)                9,958           7,067 
"Nederwiet" (kilos)              -           1,179 
Hemp plants               900,381    1,111,855 
Dismantled hemp plantations        1,574          1,867 
 
(Source:  KLPD national police force) 
 
Chemical Control 
---------------------- 
36.  (a)  The  Netherlands is a party to  the  1988  UN  Drug 
Convention  and  1990 European Union Regulations.   Trade  in 
precursors  is governed by the 1995 Act to Prevent  Abuse  of 
Chemical  Substances (WVMC).  The law seeks  to  prevent  the 
disappearance  of  legal chemicals into the illegal  circuit. 
Violations  of the law can lead to prison sentences  (maximum 
of six years), fines (up to 50,000 Euros), or asset seizures. 
The  Fiscal Information and Investigation Service (FIOD)  and 
the Economic Control Service (ECD) oversee implementation  of 
the law. 
 
37.   The  USD  and  the  Public  Prosecutor's  Office   have 
strengthened cooperation with countries playing an  important 
role  in  Ecstasy  production, in particular  with  countries 
exporting chemical precursors.  The GONL signed an  MOU  with 
China concerning chemical precursor investigations. 
 
38.  (b) The Dutch continue to work closely with the U.S.  on 
precursor   chemical   controls  and   investigations.   This 
cooperation  includes formal and informal agreements  on  the 
exchange  of  intelligence.  The  Netherlands  is  an  active 
participant in the INCB/PRISM project's taskforce. 
 
39.  (c) Yes, the Netherlands is a party to agreements  on  a 
method   of  maintaining  records  of  transactions   of   an 
established list of precursor and essential chemicals. 
 
40. (d) The Netherlands established such procedures in 1994. 
 
41.  (e)  The  Netherlands  has efficient  national  chemical 
control legislation in place which imposes record keeping and 
reporting requirements for listed chemicals. 
 
42.   (f)  No,  the  Netherlands  doesn't  encourage  illicit 
production  of  controlled substances or  the  laundering  of 
proceeds from illegal drug transactions. 
 
43.  (g) No. 
 
Sobel