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Viewing cable 06ZAGREB1338, CROATIA INCSR 2006 - PART ONE

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Reference ID Created Released Classification Origin
06ZAGREB1338 2006-11-06 14:52 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Zagreb
VZCZCXYZ0045
RR RUEHWEB

DE RUEHVB #1338/01 3101452
ZNR UUUUU ZZH
R 061452Z NOV 06
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC 6884
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEABND/DEA WASHDC
UNCLAS ZAGREB 001338 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR EUR/SCE, INL 
JUSTICE FOR OIA, AFMLS, AND NDDS 
DEA FOR OILS AND OFFICE OF DIVERSION CONTROL 
TREASURY FOR FINCEN 
 
E.O. 12958: N/A 
TAGS: SNAR PREL KJUS KCRM HR
SUBJECT: CROATIA INCSR 2006 - PART ONE 
 
REF: STATE 172484 
 
Sensitive but unclassified; please handle accordingly. 
 
1. (U) Below please find per reftel request, part one of post's 
submission for the annual International Narcotics Control Strategy 
Report.  Part two on money laundering will be submitted septel. 
 
I. Summary 
Croatia is not a producer of narcotics. However, narcotics 
smuggling, particularly heroin, through the Balkans route to Western 
Europe remains a serious concern. Croatian law enforcement bodies 
cooperate actively with their U.S. and regional counterparts to 
combat narcotics smuggling. Croatia is a party to the 1988 UN Drug 
Convention. 
 
II. Status of Country 
Croatia shares borders with Slovenia, Serbia, Montenegro, Hungary, 
and Bosnia and Herzegovina, and has a 1,000 km long coastline (4,000 
km adding in its 1,001 islands), which presents an attractive target 
to contraband smugglers seeking to move narcotics into the vast 
European market. Croatian police have noted a steady increase in 
smuggling from the east, estimating that 70 to 80 percent of heroin 
destined for European markets is smuggled through the notorious 
"Balkans Route." 
 
III. Country Actions Against Drugs in 2006 
Policy Initiatives.  In December 2005 Croatia adopted a National 
Strategy for Narcotics Abuse Prevention in November for the 
2006-2012 period, developed with assistance from the European 
Monitoring Center for Drugs and Drug Addiction (EMCDDA). The 
Strategy aims to bring demand and supply reduction efforts in line 
with EU policies and creates a National Information Unit for Drugs 
to standardize monitoring and the assessment of drug abuse data to 
facilitate data sharing with the EU's EMCDDA programs.  In February 
2006 the Government adopted the Action Plan on Drug Abuse Control 
for the 2006-2009 period.  Its goal is to achieve equal availability 
of programs throughout the country targeting primarily children, 
youth and families.  By the end of 2005, the Government completed 
establishment of the network of addiction prevention centers, which 
are now available in all of Croatia's 22 counties. 
 
In June 2006, Parliament adopted changes to the Criminal Code, which 
increased sentences for possession and dealing of illicit drugs. 
The amendments also simplified confiscation of assets of organized 
criminals.  Croatia instituted changes to the criminal code during 
the year, increasing penalties for several provisions.  The minimum 
penalty for individual narcotics production and dealing was 
increased from one to three years. The minimum penalty for selling 
of narcotics by organized groups was increased from three to five 
years.  The minimum penalty for incitement or facilitating the use 
of illegal narcotics was increased to one year.  In addition, 
possession of related equipment or precursor chemicals is now 
punishable by a punishment of no less than one year, an increase 
from three months. 
 
According to the criminal code, police are able to control 
deliveries and shipments, a method that was used frequently with 
international cooperation.  One of the changes to the criminal code, 
effective October 2006, eased measures to confiscate assets of 
organized crime groups.  The amendment places the burden of 
providing evidence about the origins of assets on the defendant 
rather than the prosecutor, and allows confiscation of assets 
acquired during the period of incriminating activity. 
Croatia continues to cooperate well with neighboring and other 
European states to improve the control and management of its porous 
borders. Cooperation on narcotics enforcement issues with 
neighboring states is generally described as excellent. 
 
Law Enforcement Efforts. The Interior Ministry, Justice Ministry and 
Customs Directorate have primary responsibility for law enforcement 
issues, while the Ministry of Health has primary responsibility for 
the strategy to reduce and treat drug abuse. The Interior Ministry's 
Anti-Narcotics Division is responsible for coordinating the work of 
counter-narcotics units in police departments throughout the 
country.  The Interior Ministry maintains cooperative relationships 
with Interpol and neighboring states, and cooperates through the 
South-Eastern Cooperation Initiative (SECI). Croatian police and 
Customs authorities continued to coordinate counter-narcotics 
efforts on targeted border-crossing points, although with 189 legal 
border crossings, the level of coordination was not consistent. 
Heroin (25 kg in 2005 vs. 80 kg in the first nine months of 2006) 
and hashish (6 kg in 2005 vs. 12 kg in the first nine months of 
2006) seizures increased this year.  The sharp rise in heroin 
seizures was attributed to a large seizure by border police. 
Marijuana (428 kg in 2005 vs. 144 kg in the first nine months of 
2006) and cocaine seizures (17.6 kg in 2005 vs. 5kg to date this 
year) declined, as have amphetamine and ecstasy seizures.  Police 
reported 4.7 percent more arrests this year in connection with 
narcotics charges when compared to 2005.  Increased attention has 
been paid to detecting money laundering with funds obtained through 
narcotics dealing.  In 2005 police submitted ten such criminal 
charges. 
 
Corruption. Narcotics-linked corruption does not appear to be a 
major problem in Croatia.  As a matter of government policy, Croatia 
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. 
Similarly, no senior government official is alleged to have 
participated in such activities.  In 2006, police increased efforts 
to fight corruption internally, resulting in the removal of six 
hundred thirty officers. 
 
Agreements and Treaties. Croatia ratified the UN Convention Against 
Corruption in April 2005. Croatia is a party to the 1988 UN Drug 
Convention, the 1961 UN Single Convention as amended by its 1972 
Protocol and the 1971 UN Convention On Psychotropic Substances. 
Croatia is also a party to the UN Convention against Transnational 
Organized Crime and its protocols against trafficking in persons, 
migrant smuggling, and illegal manufacturing and trafficking in 
firearms.  Extradition between Croatia and the United States is 
governed by the 1902 Extradition Treaty between the U.S. and the 
Kingdom of Serbia, which applies to Croatia as a successor state. 
Croatia has signed bilateral agreements with 29 countries permitting 
cooperation on combating terrorism, organized crime, smuggling and 
narcotics abuse.  The Croatian constitution prohibits the 
extradition of Croatian citizens; however, the Government of Croatia 
permits its citizens to be extradited to the International Criminal 
Tribunal for the Former Yugoslavia (ICTY). 
 
Cultivation/Production.  Small-scale cannabis production for 
domestic use is the only narcotics production within Croatia.  In 
2005, 2,960 cannabis plants were seized.  Opium poppies are 
cultivated on a very small scale for culinary use of the seeds. 
Because of Croatia's small market and its relatively porous border, 
Croatian police report that nearly all illegal drugs are imported 
into Croatia.  However, authorities believe that given the existence 
of ecstasy labs in Bosnia and Herzegovina, it is inevitable that 
small-scale labs will be discovered in Croatia. 
 
Drug Flow/Transit. Croatia lies along part of the "Balkans Route." 
Authorities believe that up to 80 percent of the heroin from Asian 
sources travels across this route on its way to the European market. 
 Although not considered a primary gateway, police seizure data 
indicate smugglers continue to attempt to use Croatia as a transit 
point for other drugs, including cocaine and cannabis-based drugs. 
A general increase in narcotics abuse and smuggling has been 
attributed to liberalization of border traffic and increased tourism 
and maritime activities.  Police noted that cocaine seizures 
primarily occurred at Croatia's seaports.  Cannabis-based drugs have 
increasingly been identified at road border crossings.  Ecstasy and 
other pill-form narcotics are smuggled into Croatia both from 
Western Europe (The Netherlands and Belgium are primary suspected 
sources) and eastern countries in small quantities for domestic use. 
 
 
Domestic Programs/Demand Reduction. The Office for Combating Drug 
Abuse is the focal point for coordination of various agencies 
activities to reduce demand for narcotics. This Office develops the 
National Strategy for Narcotics Abuse Prevention, which was adopted 
by the government in November for the period of 2006-2012. 
According to the Office, Istria County continued to have the highest 
rate of treated addicts, followed by the Zadar and Varazdin County. 
The high rates in Istria did not necessarily reflect high drug abuse 
rates, but rather an efficient system of their inclusion in 
treatment due to good cooperation between drug abuse prevention 
centers and general practitioners.  In 2005, 6,688 persons underwent 
drug addiction treatment, which is a 15.6 percent increase from in 
the previous year. 
 
The majority of those treated were opiate addicts.  The number of 
the first-time seekers of addiction treatment, which has been 
sliding since 2001, rose by 9.3 percent in 2005 and the number of 
new opiate addicts increased 7.2 percent compared to 2004. 
Government sources ascribe the increase to a wider and more 
efficient network of addiction prevention centers.  Approximately 72 
percent of the overall number of addicts was addicted to heroin. 
The Government said that the number of addicts infected with 
hepatitis C and HIV, which stood at 47 percent and 0.5 percent 
respectively, has not changed significantly in 2005.  The number of 
deaths caused by overdose continued to rise.  There were 104 
drug-related deaths in 2005, down from 108 in 2004 (of which 88 died 
from overdose). 
 
Demand reduction programs are coordinated by the Government's Office 
for Combating Drug Abuse.  The Ministry of Education requires drug 
education in primary and secondary schools. Other ministries and 
government organizations also run outreach programs to reach 
specific constituencies such as pregnant women. The state-run 
medical system offers treatment for addicts, but slots are 
insufficient to accommodate all needing treatment. 
 
Methadone is used in the treatment of 67 percent of patients.  The 
Ministry of Health operates in-patient detoxification programs as 
well as 14 regional outpatient methadone clinics.  In January 2006, 
Croatian authorities adopted guidelines to change the official 
health protocol on disbursement of heptanon and other heroin 
addiction replacement therapy drugs.  This initiative was taken to 
counter the growing abuse of heptanon in Croatia: seizures of 
illegal heptanon doubled in 2005 compared to 2004 and 20 persons 
died from overdose.  Under the guidelines only licenced 
psychiatrists are allowed to prescribe substitute treatment which 
must occur in the presence of a general practitioner.  The Ministry 
of Heath is currently forming guidelines for buprenophine usage. 
 
The Government spend 49.8 million kuna (8.6 million USD) on all drug 
abuse related programs) in 2005, which is eight percent less than in 
the previous year.  It has created a network of county-level expert 
advisory groups that work with local governments to counter 
narcotics abuse and serve as incubators for policy initiatives.  In 
Varazdin, the advisory group continued a random drug testing program 
for high school students. 
 
IV. U.S. Policy Initiatives and Programs 
Bilateral Cooperation. The primary objectives of U.S. initiatives in 
Croatia are to offer assistance with the development of skills and 
tools among Croatian law enforcement agencies to improve their 
ability to combat organized crime and narcotics trafficking and to 
improve Croatian law enforcement agencies' abilities to work 
bilaterally and regionally to combat trafficking.  Having achieved 
basic objectives, U.S. assistance for police reform efforts under 
the ICITAP (DoJ) program was refocused on combating organized crime 
and corruption.  In October 2006, Croatian police formed the first 
joint police-prosecutor task force to target a criminal organization 
allegedly involved in drug trafficking and other illegal activities. 
 In addition, Croatian police have been regular participants in 
training programs at the U.S.-funded International Law Enforcement 
Academy in Budapest as well as follow-on training in Roswell, New 
Mexico.  Under the Export Control and Border Security (EXBS) 
program, police and customs officers have been trained this year on 
border security, tracking training, and commodity identification, 
all of which will assist in preventing trafficking through Croatia. 
 
Road Ahead. For 2007, U.S. expert training teams will join 
in-country U.S. trainers to help Croatian police develop skills in 
surveillance, management development, port security and port 
vulnerability assessments.  Resident advisors will continue to 
assist the Ministry of Interior in improving police and prosecutor 
cooperation in complex narcotics and organized crime cases. 
Additional training and detection equipment donations planned for 
2007 under the EXBS program will have ancillary benefits for 
Croatia's fight against narcotics trafficking, particularly in the 
areas of interagency cooperation and border management. 
BRADTKE