VZCZCXYZ0012
RR RUEHWEB

DE RUEHSG #0974/01 3042003
ZNR UUUUU ZZH
R 302003Z OCT 08
FM AMEMBASSY SANTIAGO
TO SECSTATE WASHDC 3900

UNCLAS SANTIAGO 000974 
 
SIPDIS 
 
STATE PLEASE PASS TO JOHN LYLE, INL 
 
E.O. 12958: N/A 
TAGS: SNAR PREL ECON KCRM CI
SUBJECT: CHILE: 2008-2009 INCSR 1 SUBMISSION 
 
REF: STATE 100970 
 
Chile 
¶I. Summary 
Chile is a transit country for Andean cocaine shipments 
destined for the U.S. and Europe. Chile has a domestic 
cocaine and marijuana consumption problem, and use of the 
amphetamine-type drug ecstasy is increasingly popular. Chile 
is also a source of precursor chemicals for use in cocaine 
processing in Peru and Bolivia. Chile is a party to the 1988 
UN Drug Convention. 
 
II. Status of Country 
Chile,s long, difficult-to-monitor borders with Peru, 
Bolivia and Argentina and international ports make it an 
appealing transit country for cocaine from the Andean region 
enroute to the U.S. and Europe. Consumption of cocaine 
hydrochloride (HCl), which is cocaine in its powdered form, 
has increased domestically, although abuse of cocaine base, a 
form of crack cocaine, is more prevalent. Chile ranks fourth 
in cocaine consumption and first in marijuana consumption 
among South American countries, according to the United 
Nation,s 2008 World Drug Report. Some marijuana is 
cultivated in Chile, but most is imported from Paraguay for 
use by Chilean teenagers and young adults. Chile,s National 
Drug Control Commission (CONACE) released a study in 2008 
that revealed increased availability of marijuana among 
students between 2005 and 2007. 
III. Country Actions Against Drugs in 2008 
 
Policy Initiatives. Chile recognizes the threat posed by 
illicit narcotics and has adopted policies and enforcement 
efforts that contribute to worldwide drug control efforts. 
In 2008, Chile changed its criminal statutes to align 
penalties for trafficking marijuana with penalties for 
trafficking cocaine, heroin, and other drugs.  Previously, 
convictions for marijuana trafficking did not have the same 
severity under the law as convictions for trafficking in 
other drugs such as cocaine or heroin.  The change can be 
attributed to an alarming increase in the illicit importation 
of marijuana from Paraguay. 
 
In 2008, CONACE continued to review its national drug control 
strategy. The new strategy, which will be published in 2009, 
will likely place a stronger emphasis on drug prevention. 
CONACE also expanded its drug court pilot program to Iquique 
and Antofagasta. There are now 18 drug courts operating in 
Chile. These courts, similar to U.S. drug courts, provide 
rehabilitation to drug offenders under judicial supervision. 
CONACE also signed an agreement with the Public Ministry,s 
office to evaluate the drug courts initiative. 
 
Chile,s adversarial judicial system continues to mature. 
Chile completed its transition from an inquisitorial to an 
adversarial system in 2005, and feedback in 2008 suggests 
that there is greater public acceptance of the new system, 
and faster resolution of cases. Challenges of training 
judges, prosecutors and law enforcement officials on evidence 
collection and analysis, law enforcement techniques such as 
undercover operations, courtroom presentation methods, and 
court administration procedures remained. 
 
Law Enforcement Efforts.  Through June 2008, Chile reported 
seizures of approximately 791 kg of cocaine; 1,865 kg of 
cocaine pasta base; 4,156 kg of processed marijuana; 11 units 
of illegal pharmaceutical drugs; Statistics were not 
available for heroin, ecstasy, or LSD. Noteworthy operations 
included the April 2008 seizure of 29 kg of cocaine and other 
drug ingredients from the &Los Gaete8 Drug Cartel that 
resulted in ten arrests. 
 
The Carabineros de Chile and the Policia de Investigaciones 
(PDI) have primary responsibility for counternarcotics law 
enforcement.  Both the Carabineros and the PDI have dedicated 
anti-drug units that are considered highly professional and 
competent.  Law enforcement efforts target both major and 
micro-traffickers.  Chile,s long coast-line and 
international ports contribute to drug shipments by sea.  In 
2008, the PDI created a Maritime Container Investigations 
Unit designed to target drug trafficking organizations using 
ports in Chile for the transit of narcotics and chemical 
precursors.  The Carabineros de Chile also launched &Plan 
Vigia8, an effort to focus on drug traffickers in northern 
Chile.  &Plan Vigia8 provided more resources to the 
northern region, specifically near Calama, in response to an 
increase in the trafficking of Bolivian cocaine.  Chile 
formed the Border Intelligence and Analysis Group designed to 
increase intelligence collection and dissemination among 
various law enforcement agencies.  The group is composed of 
members of the Carabineros, PDI, Customs Service, and the 
Bureau of Prisons.  This inter-agency effort builds on the 
success of the Arica Narcotics Investigations Task Force, 
launched in 2007. 
 
Corruption. As a matter of policy, no senior GOC official or 
the GOC encourages or facilitates the illicit production or 
distribution of narcotic or psychotropic drugs or other 
controlled substances, or the laundering of proceeds from 
illegal drug transactions. Narcotics-related corruption among 
police officers and other government officials is not 
considered a major problem in Chile, and no current Chilean 
senior officials have been accused of or engaged in such 
activities. In cases where police are discovered to be 
involved in drug trafficking, or in protecting traffickers, 
simultaneous termination and initiation of an investigation 
are immediate. Chile is traditionally considered the least 
corrupt country in Latin America and ranked as the third 
least corrupt country in the Americas behind Canada and the 
United States in the most recent Corruption Perception Index 
Survey released by Transparency International. 
 
Agreements and Treaties. Chile is a party to the 1961 UN 
Single Convention as amended by the 1972 Protocol, the 1971 
UN Convention on Psychotropic Substances and the 1988 UN Drug 
Convention. Chile is also a party to the UN Convention 
against Transnational Organized Crime and its protocols 
against trafficking in person and migrant smuggling, and the 
UN Convention Against Corruption. The 1900 U.S.-Chile 
Extradition Treaty is currently in force. (Note: This was 
signed in 1900 and entered into force in 1902.) The U.S. and 
Chile continue to negotiate a new extradition treaty.  While 
the U.S. and Chile do not have a bilateral mutual legal 
assistance treaty (MLAT), both countries are parties to the 
Organization of American States, 1992 Inter-American 
Convention on Mutual Assistance in Criminal Matters, which 
facilitates mutual legal assistance. 
 
Cultivation/Production. Chile produces a small amount of 
marijuana that is consumed domestically. 
 
Drug Flow/Transit.  Narcotics enter Chile through border 
crossings with Peru, Bolivia and Argentina. Within Chile, 
narcotics move along Route 5, the main north-south corridor 
and part of the Pan American Highway. Narcotics transit out 
of Chile to the U.S. and Europe via maritime routes. Efforts 
to intercept illegal narcotics in the northern ports are hurt 
by inspection restrictions. These restrictions, established 
by the treaty signed after the War of the Pacific, allow 
cargo originating in Peru and Bolivia to pass through ports 
in Arica, Iquique, and Antofagasta without Chilean 
inspection. 
 
Domestic Programs/Demand Reduction. CONACE offers a full 
range of programs designed to reduce domestic drug 
consumption. The programs focus on drug prevention in 
schools, the workplace, and the community. There is a 
movement to increase family involvement to prevent drug abuse 
and CONACE has several programs designed to help parents talk 
to their children about the danger of drugs. Chile does not 
promote or sanction any harm reduction programs.  The GOC 
also provides rehabilitation treatment for drug addicts 
through CONACE and the Ministry of Health. 
 
IV. U.S. Policy Initiatives and Programs 
 
Policy Initiatives. U.S. anti-narcotics objectives in 2008 
focused on increased intelligence capabilities, enhanced 
inter-agency cooperation among Chilean law enforcement 
agencies, and support for anti-money laundering efforts. 
These objectives aimed to increase the ability of Chilean law 
enforcement agencies to combat some of the most challenging 
aspects of the drug trade in Chile. 
 
Bilateral Cooperation. The USG and GOC have a strong record 
of bilateral anti-narcotics cooperation. In 2008, the USG and 
GOC worked together to address intelligence gathering 
capability, inter-agency cooperation, and maritime security 
through training and exchanges. DEA officers in Santiago 
conducted a three day Law Enforcement Tactical Training 
Course for members of the PDI anti-narcotics unit and an 
undercover operations course for the Carabineros. DEA offices 
in Santiago, La Paz, Lima, Buenos Aires, and Asuncion 
continued to support an Officer Exchange Program among their 
respective host nations in 2008. 
Chilean officials traveled to Houston/Galveston and U.S. 
Coast Guard facilities in California to learn about port 
security and maritime security. 
 
The Road Ahead.  In the future, USG support for Chile,s 
counternarcotics efforts will focus on interagency 
cooperation and conducting complex investigations. USG 
training and equipment will assist Chile,s efforts to 
gather, analyze and share counternarcotics intelligence among 
its different law enforcement agencies, particularly in the 
northern border region.  The USG will also train Chilean 
judges, prosecutors, and the law enforcement community in 
support of Chilean efforts to create a criminal justice 
system which can deal with complex, transnational crime. 
This training will enhance Chile,s ability to pursue major 
cases related to drug trafficking and money laundering. 
 
Chemical Controls 
Chile 
Chile has a large petrochemical industry involved in the 
manufacturing, importation, and exportation of thousands of 
chemical products and by-products. Chile is a source of 
precursor chemicals for use in coca processing in Peru and 
Bolivia. In March 2008, law enforcement groups seized over 
4000 kg of pre-cursor chemicals in Iquique, the largest 
seizure to date in Chile. Companies that import, export, or 
manufacture chemical pre-cursors must register with CONACE, 
maintain customer records, and are subject to CONACE 
inspections. Chilean law enforcement entities also have 
specialized chemical diversion units. 
SIMONS