US embassy cable - 05BOGOTA10891

C O N F I D E N T I A L SECTION 01 OF 02 BOGOTA 010891 
 
SIPDIS 
 
DEPARTMENT FOR INL/LP AND WHA/AND 
ONDCP FOR DIRECTOR WALTERS 
 
E.O. 12958: DECL: 11/21/2015 
TAGS: PGOV, SNAR, CO 
SUBJECT: ONDCP DIRECTOR WALTER'S NOVEMBER 8 MEETING WITH 
DNE DIRECTOR VIVES 
 
 
Classified By: CHARGE MILT DRUCKER FOR REASONS 1.4 (B) AND (D) 
 
1.  (C) SUMMARY.  During his visit to Colombia, Office of 
National Drug Control Policy (ONDCP) Director John Walters 
met with the Director of Colombia's National Directorate on 
Dangerous Drugs (DNE), Juan Vives.  Dr. Vives and his DNE 
colleagues briefed Director Walters on DNE activities, 
including DNE,s role in asset forfeiture.  Director Walters 
reviewed statistics on demand reduction in the USA as well as 
emerging information on changes in the cocaine market in the 
USA.  END SUMMARY. 
 
2. (C) As part of a trip to Colombia, ONDCP Director John 
Walters visited Colombia,s DNE Director Dr. Juan Vives on 
November 8, 2005. 
 
3.  (C) The U.S. participants in the meeting were: 
--ONDCP Director John P. Walters 
--ONDCP Assistant Deputy Director Patrick Ward 
--ONDCP Colombia Policy Analyst Richard O,Connor 
--NAS Director Julie Gianelloni Connor 
--NAS Program Officer Paul Dever 
 
The Colombian participants were: 
--DNE Director Juan Vives Menotti 
--DNE Deputy Director for International Relations Carlos 
Medina 
--DNE Legal Advisor Camilo Guzman 
--DNE Deputy Director for Chemical Precursors Marta Romero 
--DNE Officer for Media Maria Elena Romero 
 
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Colombian Seizure Laws and Effect 
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4. (C) DNE Director Vives detailed the successes and the 
(minor) drawbacks of the Colombian Asset Seizure Laws.  The 
assets confiscation process is a victim of its own success. 
The state is confiscating more property (to include vehicles, 
watercraft, aircraft, buildings, companies, and farms) than 
it can manage.  They know that they have seized over 32,000 
properties but are unable at this time to complete a proper 
inventory due to lack of assessors and other qualified people 
to verify the value of the properties seized.  While they 
cannot give an accurate figure on the value of seized goods, 
their ballpark figure is USD 482 million. (Post comment: the 
Colombian seizure laws state that property seized must be 
maintained in the same condition in which it was seized in 
case the goods are returned rather than forfeited. End 
Comment.) 
 
5. (C) DNE uses USG-donated computer software, FARO, to track 
all of the 32,000 seized properties, and another system, 
FRISCO, to track those properties for which they have title. 
At present, the GoC holds title for only 3,000 items, or less 
than 10% of the seized properties. 
 
6. (C) Director Vives explained that there are legal 
constraints to the seizure process. It can take several years 
to resolve a case, and in the interim the state must take 
care of the property.  It is difficult to find qualified 
caretakers due to the danger attached to caring for 
confiscated property due to the personal threats often levied 
against DNE-appointed managers.  An example Vives gave was a 
dairy farm which needs daily attention from qualified workers. 
 
7. (C) Director Vives gave a short history of the seizure 
process:  The law governing seizures was improved in 2002. 
Previously, the district attorneys who dictated the 
confiscation orders did not have to include complete 
information regarding the seized assets.  As a result, DNE,s 
records on assets seized prior to 2002 are incomplete.  Since 
the implementation of the new law in 2002, the records are 
more accurate and detailed.  Proceeds from the auction of 
confiscated properties beginning in 2006 will go to support 
the construction of new prisons for the next ten years. 
Also, seized cash is portioned out to several national 
agencies, including the police. 
 
8. (C) When asked why farmers are not being arrested for coca 
cultivation, DNE Observatory Director Carlos Medina stated 
that the law was implemented mainly for the large traffickers 
and that, although cultivation is illegal, their target is 
large-scale traffickers. (Post comment: Almost no one has 
been arrested and charged with coca cultivation; confiscation 
procedures are mainly brought against traffickers. End 
comment.) 
 
9. (C) Director Walters expressed concern about the seizure 
process and its difficulties.  DNE Director Vives explained 
that the Colombian government is doing what it can to 
streamline the process so there are fewer difficulties and a 
shorter process. 
 
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REASONS FOR LITTLE CHANGE IN PRICE OR PURITY OF COCAINE 
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10. (C) Director Walters discussed possible reasons why the 
price and purity of cocaine over the years had not changed. 
First, while the supply is decreasing, so is the demand in 
the USA.  Director Walters offered statistics on the decline 
in drug usage among young Americans.  In addition, Director 
Walters said that the overproduction of cocaine in the 
1980,s and 1990,s surpassed consumer demand and led to a 
reserve being built up.  It has taken several years of 
intense GOC eradication and interdiction for this reserve to 
be drawn down.  Director Walters also noted that the coca 
production pipeline stretches from 12 to 24 months, so 
immediate price change is not guaranteed.  Director Walters 
stated that he was optimistic that there would shortly be 
good news on positive trends in the USA showing an increase 
in cocaine prices and a decrease in cocaine purity (NOTE: On 
November 17,2005, Director Walters did announce significant 
progress in reducing the purity of cocaine in the U.S. and 
raising its price.) 
 
11. (C) DNE Director Vives felt that was possible, but he had 
another theory: synthetic drugs.  He expressed concern that 
synthetic drugs will soon replace cocaine as the drug of 
choice.  His fear is that knowledgeable Colombian chemists 
will turn to producing and exporting these newer, more 
dangerous drugs. 
 
12. (C) Concerning demand reduction, Director Vives explained 
that the Ministry of Social Welfare currently has the 
responsibility for prevention and anti-drug education 
policies and programs.  The DNE, which some years ago was 
responsible for this area, would like to resume work on 
demand reduction.  Dr. Vives is seeking approval for this. 
 
13. (C) Director Vives reported that another major area of 
DNE work is the "Drug Observatory," which is the GOC,s 
official compilation of data on drug issues in Colombia.  DNE 
Deputy Director Medina heads this project.  An annual report 
giving data concerning illegal drugs in Colombia is 
published, and an English translation of the latest volume is 
being prepared with USG financial assistance. 
 
14. (C) COMMENT.  Since Dr. Vives took over the directorship 
of the DNE in May 2005, the Embassy has enjoyed a good 
working relationship with DNE.  NAS has been consulting on 
ways to collaborate with the DNE, especially on demand 
reduction projects and on anti-drug media campaigns. Regular 
joint DNE-NAS meetings have begun.  END COMMENT. 
 
DRUCKER 
DRUCKER