R 021448Z JAN 09
FM AMEMBASSY MEXICO
TO SECSTATE WASHDC 4525
INFO DIR ONDCP WASHINGTON DC//OR//
DEA HQS WASHINGTON DC
USCBP WASHINGTON DC
HQ BICE WASHINGTON DC
FBI WASHINGTON DC
AMEMBASSY BELIZE 
AMEMBASSY GUATEMALA 
AMEMBASSY SAN JOSE 
AMEMBASSY SAN SALVADOR 
AMEMBASSY SANTO DOMINGO 
AMEMBASSY PANAMA 
AMEMBASSY TEGUCIGALPA

UNCLAS MEXICO 000001 
 
 
STATE FOR INL/LP AND WHA/MEX 
DEA FOR OD, OF, OFC, AO, DO, NPSM 
FBI DIR FOR LA/CU, OC/DB, OIU, CID 
 
E.O. 12958: N/A 
TAGS: SNAR KCRM KJUS PGOV PREL MX
SUBJECT: GOM Views on Next Steps in Regional Precursor Control 
Project 
 
¶1. (SBU) Summary: Nadia Levy-Popp, Director of Precursor Chemicals 
in PGR/SIEDO, recently shared with Emboffs a report that reviews the 
status of precursor controls in Central America (below).  Levy-Popp 
stressed the importance of training to the development of new 
precursor regimes in Central America and to building the key 
relationships that will strengthen the region's ability to control 
precursors in the wake of Mexico's improved legal and enforcement 
framework.  Levy-Popp urges a major training effort from June to 
September 2009 in either ILEA San Salvador or Mexico City, supported 
jointly by the GOM, the USG, and the United Nations Office on Drugs 
and Crime (UNODC).  End Summary 
 
EMPHASIS ON TRAINING EFFORT FOR THE REGION 
------------------------------------------ 
 
¶2. (SBU) NAS Director and DEA Analyst met December 17 with Nadia 
Levy-Popp, Director of Precursor Chemicals in PGR/SIEDO, and 
formerly on contract as an advisor to the USG to work throughout 
Central America and the Southern Cone developing new legal tools to 
control the flow of precursor chemicals.  Levy-Popp is working on 
Mexico's precursor regime but remains focused on the region as well. 
 She shared with us a paper -- Reduction in Imports in Central 
American and Southern Cone, Strengthening the Mechanisms of Control 
-- which derives from the project she has been working on for the 
past year.  A translation of the paper is included below. 
 
¶3.  (SBU) Levy-Popp made two key points with regards to the future 
of the effort to strengthen precursor controls.  First, she believes 
keeping Mexico engaged is crucial, as Mexican officials will often 
have success in bringing together their Central American 
counterparts, where U.S. officials might be less successful. 
Second, regional training is vital to the effort.  In addition to 
the improved capacity it brings, training leads to networking among 
the various officials who will be working on precursor controls, 
always in a cross border setting, and opens doors for those 
providing the training to high level officials throughout the 
region.  Levy-Popp urges a joint program by the USG and GOM, with 
UNODC involved in support as the provider of key software.  She 
suggests a training effort from June to September 2009, held either 
in Mexico City or ILEA San Salvador, in which participants are 
provided computers and software which they would train on and then 
take back to their home country. 
 
REPORT ON STRENGTHENING THE MECHANISMS OF CONTROL 
--------------------------------------------- ---- 
 
¶4. (SBU) Levy-Popp provided Emboffs with a report on the precursor 
control project, a translation of which is provided below: 
 
Begin Text 
 
Title: Project -- Reduction in Imports in Central American and 
Southern Cone, Strengthening the Mechanisms of Control 
 
CENTRAL AMERICA DEVELOPMENTS (APRIL 2007) 
 
-- Regional initiative to strengthen control mechanisms in Central 
America: US Embassy in Mexico, GOM in coordination with authorities 
from the region. 
 
-- Training in: chemical identification, diversion techniques, 
auditing techniques, NDS system and the COFEPRIS experience 
(strategy to reduce imports), and PGR/SIEDO (presentation of 
diversion cases). 
 
-- Meetings with authorities to raise awareness on the problem of 
diversion in the region and the necessity to update controls and 
implement new mechanisms. 
 
-- Coordination was handled by the Ministry of Health which has a 
legal basis to strengthen regulations on narcotic, psychotropic and 
chemical substances. 
 
 
OBJECTIVE: Confirm the legal destination of precursor chemicals and 
prevent diversion in Central America to Mexico and the United 
Status. 
 
 
FACTS: 
 
-- Drastic reduction in imports to Mexico since 2004 and their 
subsequent cancellation in 2008. 
 
-- Lack of controls in Central America with respect to the import 
and distribution of pseudoephedrine (raw materials and finished 
pharmaceutical products). 
 
-- The 1988 United Nations Convention against Illicit Traffic in 
Narcotic Drugs and Psychotropic Substances requires control of raw 
materials, not finished pharmaceutical products. 
 
-- Result: Increase in illegal imports of pseudoephedrine to Central 
America and the possible diversion of raw materials and finished 
pharmaceutical products in internal chains of distribution. 
 
 
NORTH AMERICA: 
 
-- When the US and Canada strengthened their control mechanisms 
through changed legislation, diversion moved to Mexico which peaked 
at a legal import of 216 tons in 2004. 
 
-- In a 2007 report, the International Narcotics Control Board 
(INCB) warned that the multilateral chemical control initiative 
Project Prism had led to a new trend in diversion; contraband in the 
form of finished pharmaceutical products transit Central and South 
America through internal chains of distribution toward North 
America. 
 
 
CENTRAL AMERICA STRENGTHS: 
 
-- Signatory states of the 1988 Convention. 
 
-- Participants in OAS/CICAD. 
 
-- General legislation on chemical precursor control exists, but an 
update addressing finished pharmaceutical products and efficient 
enforcement is necessary. Some cases require substantial reform or 
emission of concrete laws that state the Convention's commitments 
and controls. 
 
 
CENTRAL AMERICA WEAKNESSES: 
 
-- Varied difficulties using the NDS 6.0 and PEN Online Systems 
(INCB), except in Costa Rica. 
 
-- Limited coordination between the responsible authorities 
(Ministry of Health, customs, law enforcement, and prosecutors). 
 
-- Health authority's limited involvement with the pharmaceutical 
industry (self regulation). 
 
-- Lack of material resources and sufficient capable staff. 
 
PROGRESS BY COUNTRY: 
 
PANAMA: 
 
-- Currently analyzing imports against therapeutic needs and pushing 
for the reformulation of pharmaceuticals by 2010. 
 
-- The list of controlled substances has already been approved by 
the National Commission for the Study and Prevention of Crime 
Related to Drugs (CONAPRED) in accordance with Law 19, to be 
published in the Official Gazette. 
 
NICARAGUA: 
 
-- July 25, 2007, Ministerial Resolution 223 - 2007: pseudoephedrine 
and ephedrine were included in the list of psychotropic substances 
and are controlled as such. Pseudoephedrine and products containing 
it are controlled through import/export permits. 
 
-- Currently drafting a Ministerial Resolution to prohibit the 
import and sale of pseudoephedrine in Nicaragua. 
 
EL SALVADOR: 
 
-- Incorporated the diversion concept into the Regulatory Law of 
Activities Related to Drugs and established civil sanctions and 
penalties for the diversion of pharmaceutical products. 
 
-- September 3, 2008, Agreement for the control and handling of 
pseudoephedrine: fixes import quotas based on actual consumption, 
sets a one-year deadline for the removal of the chemical from over 
the counter drugs, and requires products with the chemical to be 
restricted to retained-prescription only. 
 
BELIZE: 
 
-- June 21, 2008, Statutory Instrument 72: prohibits the import of 
pseudoephedrine, ephedrine and pharmaceutical products that contain 
them. 
 
COSTA RICA: 
 
-- The Costa Rican Drug Institute (ICD) is working to control 
products that contain substances from Table I of the 1988 
Convention, limiting their sale by medical prescription. 
 
-- Once these controls exist, they plan to issue specific 
instructions to pharmacies for registering sales of these drugs and 
establishing limits on quantities sold. 
 
-- Until the list of controlled substances is modified, the national 
pharmaceutical industry, importers, and wholesale distributors have 
the option of reporting imports/exports of these types of 
medications on a voluntary basis to the ICD. 
 
-- The modification of the list of controlled substances will 
strengthen import/export permits on any medication that contains 
substances from Chart I. 
 
HONDURAS: 
 
-- The Ministry of Health convened a "Commission to Reform the Legal 
Framework." 
 
-- June 4, 2008, Ministerial Agreement 997: calls for a 90% 
reduction in pseudoephedrine and ephedrine imports. The substances 
must be distributed solely by authorized establishments exclusively 
for medical use and by retained-prescription. The agreement also 
calls for the reformulation of existing pharmaceuticals. 
 
-- An additional proposal seeks to prohibit the use of 
pseudoephedrine and ephedrine in cold remedies 
 
-- Within the framework of the National Council against Drugs, 
Honduras has also created an inter-institutional commission to 
control precursor chemicals. 
 
GUATEMALA: 
 
-- The Ministry of Health is working on the "Guatemala 
pseudoephedrine free" project to control the import of products 
containing the precursor and to establish a substitute. 
 
-- Their goal is to reach complete independence from imports by 
¶2010. 
 
 
TRAINING: 
 
Courses have allowed us to gain the trust of officials involved in 
controlling chemical precursors from health agencies, customs, 
federal police forces, drug enforcement, the judiciary, and national 
drug councils. 
 
-- Immersion Course: October 6-10, 2007, Mexico City, included 
Central American agencies. 
-- Training Course for the Judiciary 
-- Training Course in Belize 
 
 
-- Training Course in Paraguay 
-- Training Course in Peru - "6 Fronteras" 
-- NDS y PEN Online training (coordinated with UNODC) 
 
 
 
CONCLUSIONS: 
 
-- The Seminar on Chemical Control has helped Central America raise 
consciousness and further recognize the dangers posed by synthetic 
drugs highlighting the importance of control mechanisms. 
 
-- Due to a lack of control over finished pharmaceutical products it 
has been difficult for authorities to determine what is legally 
imported in each country and whether imports have increased over 
recent years. 
 
-- Diversion moves from region to region in search of a lack of 
legislation and norms. 
 
-- While the number of countries with strengthened mechanisms on raw 
materials increases, traffickers take advantage of loopholes in 
legislation to divert finished pharmaceutical products. 
 
-- Also, as international controls regarding finished pharmaceutical 
products improve, traffickers develop new methods and diversion 
routes, relying on internal distribution chains, taking advantage of 
lax or non existent regulations. 
 
End Text 
 
BASSETT