US embassy cable - 03KATHMANDU1133

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001133 
 
SIPDIS 
 
STATE FOR SA/INS, SA/RA AND INL, DS/IP/SA 
LONDON FOR POL-GUERNEY 
NEW DELHI FOR DEA AND CUSTOMS 
 
E.O. 12958: DECL: 06/19/2013 
TAGS: SNAR, NP 
SUBJECT: NEPAL: MID-YEAR STATUS REPORT ON DRUG TRAFFICKING 
 
Classified By: Charge Robert K. Boggs for Reasons 1.5 (b,d). 
 
1. (C) Summary.  Nepali police have seized 149 kg of cannabis 
and hashish and 6.9 kg of heroin in the first half of 2003, 
up from only 38 kg of hashish and .38 kg of heroin in the 
same period in 2002.  Forty-four Nepali citizens and 8 
foreigners have been arrested in Nepal, while 12 Nepali 
citizens have been arrested overseas in connection with drug 
trafficking.  Nepali police estimate that domestic production 
of cannabis and hashish is high, but seizures are extremely 
difficult, as most illicit drugs are transported by land to 
India.  Anectodal evidence indicates that Maoist insurgents 
levy a 35 percent tax on the cultivation and transportation 
of cannabis.  Increased evidence of Nepali traffickers' 
expanding connections with international drug rings has 
raised fears that Nepal will become a transit point for 
heroin and other 'hard drugs' from India, Pakistan and 
Thailand to North America and Europe.  End Summary. 
 
2. (SBU) On June 17, PolOff met with Hemant Malla, 
Superintendant of Police for the Narcotic Drug Control Law 
Enforcement Unit (NDCLEU), to discuss progress on 
interdiction and conviction of drug traffickers in Nepal. 
The NDCLEU has eight satellite units: six in the Terai 
(southern belt), one in Pokhara and one at Tribhuvan 
International Airport outside Kathmandu.  NDCLEU employs 21 
police officers at the satellite units and 54 officers at 
headquarters in Kathmandu.  Ten of these officers work 
undercover as buyer agents.  (Note.  Most interdictions made 
within Nepal are based on intelligence provided by the 
undercover police officers, not from random searches.  End 
Note.)  According to Malla, the NDCLEU's largest operational 
problem is the unpredictable rotation and reassignment of 
police in Nepal; officers may work at the NDCLEU anywhere 
from two months to several years.  (Transfers of civil police 
in Nepal are common throughout the 46,000 strong force as a 
means to limit corruption.)   Malla must constantly train new 
officers, which he does through a team-based approach whereby 
new officers are teamed with more experienced officers in the 
field. 
 
--------------------------------------------- - 
Domestic Production, Consumption and Seizures 
--------------------------------------------- - 
 
3. (SBU) Nepal is a source country for cannabis, which is 
exported primarily for consumption in India, and hashish, 
which ends up in North America, Europe and South East Asia. 
According to Malla, Nepal consumes approximately 30 percent 
of its domestically-grown cannabis and hashish as well as 
imported low-grade heroin from Pakistan and India.  Malla 
also reported a growing incidence of methamphetamine use, as 
well as a rise in the abuse of prescription drugs, such as 
tidigesic injectable (synthetic heroin), nitrogepam and 
diagepam. 
 
4. (C) Illicit growers in Nepal cultivate two breeds of 
marijuana: a 'high breed' that grows quickly and can be 
harvested three times per year, and a 'Nepali breed,' in 
higher-demand, that is only harvested twice per year in 
January-February and October-November. The NDCLEU, during the 
first 2003 harvesting season, seized 149 kg of cannabis in 
primarily four districts (Parsa, Bara, Mahattari and 
Makwanpur) in the Terai, the southern lowlands of Nepal. 
This year the NDCLEU also seized 6.9 kg of heroin in transit 
from India, as compared to 6.5 kg by year-end 2002.  In 
connection with these seizures, the NDCLEU arrested 44 Nepali 
citizens and 8 foreigners, including 2 Israelis, 2 Poles, 3 
Japanese and 1 Burmese.  There have been no seizures of 
precursor chemcials since 1997. 
 
5. (C) Malla would not estimte the quantity of hashish and 
cannabis exported by land to India, although he believed the 
amount was very high.  Commercial trucks, returning to India 
after delivering goods in Nepal, and private vehicles stash 
illegal drugs in hidden compartments, including inside the 
seats and behind exterior side panelling.  A commercial truck 
can stash 500-700 kilograms of hashish or cannabis, while a 
small private vehicle can easily stash 70 kilograms. 
Interdictions of these vehicles is extremely difficult, said 
Malla, because the India-Nepal border is open and porous, 
with thousands of vehicles crossing by each of the major 
roads every day. 
 
6. (C) Malla referred to anectdotal evidence that Maoist 
insurgents in the middle hills of Nepal levy a tax on both 
the cultivation and transportation of cannabis.  Much of this 
cannabis is sold to China through rural Dolpa.  Malla 
estimated that the levy was as high as 35 percent of the 
value of the crops. 
 
------------------------------------- 
International Connections are Growing 
------------------------------------- 
 
7. (C) Malla reported that a growing number of Nepali 
citizens are becoming active in the international drug trade. 
 For the past six years, the NDCLEU has been working with DEA 
and other international drug control agencies to track three 
drug syndicates, helping in the arrest of over 100 
traffickers from Pakistan, India, Indonesia, Thailand and 
Nepal.  Malla reported a growth in the number of Nepali 
traffickers, based in Bangkok, who are involved in the 
financing and organizing of drug trafficking.  So far this 
year, 12 Nepali citizens have been arrested outside the 
country for trafficking in hashish, cocaine and heroin, with 
one case linked to methamphetamines.  In one case in early 
June, three Nepalis were arrested in China, near the Nepal 
border, carrying 4 kg of heroin.  Malla said he had evidence 
that Nepali drug traffickers based overseas are expanding 
their connections with Pakistani, Thai, Indian and possibly 
other international drug rings.  (Note.  Three Yakuza were 
detained at Tribhuvan International Airport in early June 
with excessive cash.  End Note.)  He fears that these 
expanding networks will result in Nepal providing a transit 
point for heroin and other 'hard drugs' from South and South 
East Asia to North America and Europe. 
 
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Comment 
-------- 
 
8. (C) It is difficult to determine the reason for the 
increase in drug seizures.    However, in view of Nepal's 
faltering tourism industry and declining economy, it is 
possible that Nepali farmers are increasing cannabis 
cultivation in order to feed their families and businessmen 
are looking for more lucrative trade.  It is also possible 
that Maoist leaders are encouraging illicit production in an 
effort to fill their depleted war chests.  The open border 
with India will continue to limit severely the ability of law 
enforcement agencies to interdict drug traffickers, creating 
a ripe environment attracting traffickers to Nepal.  End 
Comment. 
BOGGS