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                  ------------------27B2B5  060024Z /38    
P 060013Z NOV 07
FM AMEMBASSY CANBERRA
TO SECSTATE WASHDC PRIORITY 8513
INFO AMCONSUL MELBOURNE PRIORITY 
AMCONSUL PERTH PRIORITY 
AMCONSUL SYDNEY PRIORITY

UNCLAS CANBERRA 001610 
 
SIPDIS 
 
 
SIPDIS 
 
DEPARTMENT FOR INL AND EAP/ANP 
 
E.O. 12958: N/A 
TAGS: SNAR AS
SUBJECT: AUSTRALIA: 2007-2008 INTERNATIONAL NARCOTICS 
CONTROL STRATEGY REPORT (INCSR), PART I 
 
REF: STATE 136782 
 
¶1. SUMMARY 
----------- 
Australia is a committed partner in international efforts to 
combat illicit drugs. Domestically, Australian government 
policies are designed to address fully both the law 
enforcement needs and the demand reduction sides of the 
equation. Australian law enforcement agencies work closely 
with their U.S. counterparts in Australia and the United 
States, and have a robust and growing law enforcement liaison 
structure in numerous overseas posts where they also work 
closely with U.S. counterparts. 
 
¶2. STATUS OF COUNTRY 
-------------------- 
Cannabis remains the most abused drug in Australia but law 
enforcement and health officials continue to be concerned 
about the increased use of crystal methamphetamine and 
cocaine. The trend towards the use of crystal methamphetamine 
('ice') is of particular concern to Australian law 
enforcement given its destructive effect on users and the 
public. Law enforcement agencies throughout Australia 
continue to seize greater amounts of methamphetamine 
precursor chemicals and have shut down sophisticated 
clandestine laboratories with increased frequency. MDMA is 
still very prevalent in the major cities throughout Australia 
although a recent study indicates use may be falling. Large 
shipments are seized entering Australia from Europe and Asia, 
and law enforcement officials continue to encounter 
sophisticated MDMA production laboratories in the Sydney and 
Melbourne areas.  Cocaine use appears to be increasing 
throughout Australia.  The number of cocaine seizures has 
increased, with a majority of the seizures involving couriers 
and smaller amounts, but there have also been large shipments 
seized from Canada, Hong Kong and Chile. Cocaine use in 
Australia remains the drug of choice for the affluent due to 
the high price (US$277 (AUD$300)/gram to US$92-115,000 
(AUD$100-125,000)/kilogram) and the unsteady supply. (Note: 
Throughout this report, figures are in U.S. dollars, 
calculated at an exchange rate of A$1 equals U.S.$0.92. End 
note.) Its use has been increasing across all socio-economic 
levels. Australian media are describing crystal 
methamphetamine as the "new heroin," a reference to the 
heroin abuse "epidemic" which swept through Australia in the 
late 1990's and early 2000's. The heroin "epidemic" resulted 
in a significant increase in heroin overdoses and deaths. A 
variety of factors contributed to a subsequent decrease in 
heroin availability and many heroin users began utilizing 
other drugs. Of note, a recent annual drugs survey reported 
this downward trend in heroin may not be continuing as many 
abusers of crystal methamphetamine may be switching back to 
heroin due to the government's high profile campaign against 
crystal methamphetamine. 
 
 
¶3. COUNTRY ACTIONS AGAINST DRUGS IN 2007 
---------------------------------------- 
Policy Initiatives: In an effort to address the increase in 
the numbers and sophistication of clandestine laboratories, 
changes in legislation have limited the availability of 
pseudoephedrine. All pseudoephderine products are now stored 
behind the pharmacy counters, and products with high 
concentrations of pseudophederine also require a doctor's 
prescription. In response to this legislation, many organized 
crime groups have undertaken large scale imports of ephedrine 
and pseudoephedrine products from locations throughout Asia, 
and most recently Africa. Australian law enforcement 
officials seize large illicit shipments of pseudoephedrine on 
Qofficials seize large illicit shipments of pseudoephedrine on 
a regular basis. 
 
With the view that stable governments in the regions are less 
likely to be utilized by drug trafficking groups in 
establishing drug production facilities, the Australian 
Government has strengthened the AFP's capacity to respond to 
international crises, particularly within the region. The 
AFP's International Deployment Group (IDG) has been increased 
by about 400 personnel, taking the total to 1200. This has 
been the largest single increase in AFP staff since the force 
was established in 1979. The extra resources will allow the 
IDG to establish a 150-strong Operational Response Group that 
is ready to respond at short notice to emerging law and order 
issues in the region and to undertake stabilization 
operations. The AFP's international network currently has 86 
officers located in 31 posts in 26 countries worldwide. Many 
of these posts have close working relationships with area DEA 
Country Offices. 
 
 
Law enforcement efforts: Responsibility for counternarcotics 
efforts is divided among the Federal Government, primarily 
the Australian Federal Police (AFP), the Australian Customs 
Service (ACS), the Australian Crime Commission (ACC), and the 
Therapeutic Goods Administration (TGA), in addition to 
state/territorial police services. It also has a large and 
growing international deployment of AFP oveseas liaison 
officers focusing on transnational crime, including 
international drug trafficking. Australian law enforcement 
has made it a priority to identify and dismantle clandestine 
laboratories whose numbers appear to have stabilized after 
several years of drastic increases. In the period of July 
2006/2007, a total of 333 clandestine labs were seized in 
Australia. For the period of July 2005/2006, there were 390 
clandestine labs seized, and in 2004/2005, 381 clandestine 
labs seized. Although   a majority of the seized laboratories 
are unsophisticated, small capacity operations, there has 
been an increase in the number of sophisticated 
methamphetamine/crystal methamphetamine "superlabs" seized 
throughout the country.  Law enforcement authorities continue 
to report the seizure of large-scale active and inactive MDMA 
labs in the country. For July 2006/2007, 17 MDMA labs were 
seized, up from 7 MDMA labs seized during the July 2005/2006 
period. During the 2005/2006 period, some of the MDMA 
clandestine labs were 'superlabs' . 
 
Corruption: The federal agencies rarely are targets for 
allegations of corruption and misconduct. The Australian 
Crime Commission (ACC), the Australian Federal Police (AFP), 
the internal affairs sections of State Police departments, 
and legislative-established commissions actively investigate 
and pursue corruption or misconduct charges. Generally, 
investigations involving public corruption are reported by 
the media.  As a matter of policy, the Australian government 
does not encourage or facilitate the illicit production or 
distribution of narcotic or psychotropic drugs or other 
controlled substances, or the laundering of proceeds from 
illegal drug transactions.  Likewise, no senior official of 
the federal government is known to engage in, encourage or 
facilitate such illicit production, or to launder proceeds of 
illegal drug transactions, to post's knowledge. 
 
Agreements and treaties: Australia is a signatory to 
international counter-drug treaties and conventions that 
include the 1961 U.N. Single Convention (amended in 1972), 
the 1971 U.N. Convention on Psychotropic Substances, the 1988 
Convention against the Illicit Traffic in Narcotic Drugs and 
Psychotropic Substances, and the U.N. Convention against 
Transnational Organized Crime. Australia also is actively 
involved in many international organizations that investigate 
drug trafficking. Australia acts as co-chair in Asia-Pacific 
Group on money laundering, is a member of the Financial 
Action Task Force, INTERPOL, the Heads of Narcotics Law 
Enforcement Association (HONLEA), the International Narcotics 
Control Board, the South Pacific Chiefs of Police, the 
International Drug Enforcement Conference (IDEC) and the 
Customs Cooperation Council among others. 
 
Cultivation/production: The licit cultivation and processing 
of opium poppies in Australia is strictly confined to the 
Australian state of Tasmania. Tasmania is considered one of 
the world's most efficient producers of poppies with the 
highest yield per hectare of any opiate producing country. 
Qhighest yield per hectare of any opiate producing country. 
With an annual average crop yield of approximately 2.5 tons 
per hectare, Tasmania supplies around one half of the world's 
legal medicinal opiate market. The Australian poppy industry 
utilizes the Concentrated Poppy Straw process, which 
processes the dry poppy plant material 'poppy straw' for use 
in the production of codeine and thebaine. The Australian 
Federal Government and the Tasmanian State Government share 
responsibility for control of the poppy industry. During the 
growing and harvesting season, crops are regularly monitored 
by the Poppy Advisory and Control Board field officers and 
any illegal activity is investigated by the Tasmania Police 
Poppy Task Force. The export to the U.S. of Australia's 
narcotic raw material (NRM) is regulated by the '80/20 rule' 
which limits 80% of the NRM market to traditional suppliers 
(India and Turkey) while the remaining 20% is shared by 
non-traditional suppliers (Australia, France, Hungary, Poland 
and Yugoslavia). There were approximately 1000 poppy growing 
licenses granted for the 2006/2007 growing season in which 
13,000 hectares were under poppy cultivation. 
 
Domestically produced marijuana (cannabis) continues to be 
Australia's most abused illicit drug. Cannabis cultivation 
and distribution is not dominated by any group and appears to 
be organized on an entrepreneurial basis. Sophisticated 
hydroponic grow sites of various sizes have been seized 
throughout the country. Use of hydroponic grow sites continue 
to be the preferred method of the more advanced marijuana 
trafficking organizations. There is still no evidence 
indicating any large exportation of Australian produced 
marijuana but there have been instances of small amounts of 
Australian-produced hydroponic marijuana being transported to 
Asian nations for use by ex-patriate communities in those 
countries. 
 
Drug flow/transit: The Embassy continues to receive 
information indicating MDMA traffickers may be utilizing 
Australia as a transit point for MDMA shipments to other 
parts of the world. These reports remain unconfirmed but the 
situation continues to be monitored closely by both the DEA 
and Australian law enforcement organizations. 
 
Domestic programs/Demand reduction: The availability of 
treatment services for drug users remains an integral part of 
Australia's National Drug Strategy. There is a wide range of 
treatment options available throughout Australia, including 
detoxification, therapeutic communities, residential 
facilities, outpatient treatment, day programs, and self-help 
groups. As part of the Tough on Drug Strategy launched in 
1997, the Australian government has committed substantial 
resources to reducing the demand for illicit drugs throughout 
the country. This strategy, coupled with the activities of 
state/territorial agencies and non-governmental 
organizations, is aimed at reducing the demand for all types 
of drugs throughout the country. In 2001, the New South Wales 
government approved a heroin injection room in the Kings 
Cross area of Sydney. The Commonwealth of Australia 
government has opposed the operation of these injection rooms 
and is pursuing alternative harm reduction methods. To date, 
this safe injection room remains in operation. 
 
¶4. U.S. Policy initiatives and programs 
--------------------------------------- 
The United States undertakes a broad and vigorous program of 
counternarcotics activities in Australia, enjoying close 
working relationships with Australian counterparts at the 
policy making and working levels. There is an active 
collaboration in investigating disrupting and dismantling 
international illicit drug trafficking organizations. The 
United States and Australia cooperate under the terms of a 
Memorandum of Understanding that outlines these objectives. 
U.S. and Australian law enforcement agencies also have 
agreements in place concerning the conduct of bilateral 
investigations and the exchange of intelligence information 
on narcotics traffickers. Both sides continue to pursue 
closer relations, primarily in the area of information 
sharing. 
 
Chemical Control issues: The Serious Drug Offenses and Other 
Measures Bill has strengthened the ability of law enforcement 
and regulatory agencies to combat the diversion of chemicals 
and the operation of clandestine laboratories. The 
legislation increased uniformity of drug offenses throughout 
the country, simplified prosecutions concerning precursor 
chemical diversion, removed legal loopholes, enhanced 
protection for children, and strengthened protection for 
businesses involved in the legitimate sale of precursor 
chemicals. This legislation forms an integral part of the 
Australian government/s National Illicit Drugs Strategy. 
 
MCCALLUM