VZCZCXYZ0001
RR RUEHWEB

DE RUEHSG #0521/01 1551301
ZNR UUUUU ZZH
R 041301Z JUN 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 5014
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEHME/AMEMBASSY MEXICO 1313
RUEHQT/AMEMBASSY QUITO 2401
RHEHNSC/NSC WASHDC
RUEABND/DEA HQS WASHINGTON DC

UNCLAS SANTIAGO 000521 
 
SENSITIVE 
SIPDIS 
 
STATE WHA/BSC, INL/LP 
 
E.O. 12958: N/A 
TAGS: PREL SNAR PGOV CI
SUBJECT: ALARM BELLS RING IN CHILE OVER EPHEDRINE LINKED TO 
MEXICAN TRAFFICKERS 
 
¶1. This is an action request.  Please see paragraph 11. 
 
¶2. (SBU) SUMMARY:  Alarmed by recent events that culminated 
with the March 23 seizure of 1100 kgs of ephedrine linked to 
Mexico, the GOC is taking steps to strengthen precursor 
chemical controls.  Ephedrine-based drugs now require a 
doctor's prescription, and imports of pure quantities of 
ephedrine and pseudo-ephedrine will soon be limited to four 
national pharmaceutical laboratories.  Chile's National Drug 
Control Council, CONACE, has also requested an additional 40 
regulators to conduct chemical inspections and is supporting 
draft legislation to strengthen Chile's drug laws.  Chile's 
pro-active approach is limited by the country's inexperience 
in dealing with chemical precursors and a lack of training. 
Post requests $25,000 to provide specialized training for new 
CONACE inspectors.  END SUMMARY 
 
EVENTS CULMINATE WITH MASSIVE 1100 KG EPHEDRINE SEIZURE 
--------------------------------------------- ---------- 
 
¶3. (SBU) Events began on December 31, 2008 when officials in 
Mexico City confiscated 100 kgs of ephedrine that originated 
in Santiago.  Prior to shipment, Chile's Investigative Police 
(PDI) was contacted by a DHL official who thought the package 
was suspicious.  The PDI examined the shipment and permitted 
it to continue because they had neither the field test kits 
nor a trained canine to identify ephedrine. 
 
¶4. (SBU) Following the seizure in Mexico City, the PDI and 
Embassy Santiago's DEA office began investigating the 
Chileans tied to the shipment.  This investigation led to 
additional ephedrine seizures of 100 kgs on March 9 at the 
Santiago International Airport and 122 kgs in Mexico City on 
March 11.  These actions yielded more information about the 
individuals and businesses involved. 
 
¶5. (SBU) The three month investigation culminated in the 
March 23 seizure of 1100 kgs of ephedrine in Santiago and the 
arrest of six Chileans.  The six suspects are currently being 
held without bail and could face up to 15 years in prison. 
DEA estimates the value of the seized ephedrine in Mexico at 
U.S. $13 million; if processed into methamphetamines in 
crystalline form, the estimated value rises to U.S. $19 
million. 
 
PUBLIC RESPONSE DOES NOT REFLECT PRIVATE WORRIES 
--------------------------------------------- --- 
 
¶6. (SBU) Publicly, the 1100 kg seizure generated headlines in 
print and TV media and led to conflicting GOC messages about 
Chile's role in the international drug market.  While 
praising the work of the PDI, Undersecretary of Interior 
Patricio Rosende and PDI Director General Arturo Herrera 
denied that Chile was a transit country for narcotics. 
(COMMENT: This is in stark contrast to previous government 
statements and the 2008 INCSR report, and likely reflects GOC 
fears that the opposition could use the recent seizures to 
underscore allegations that the Bachelet administration has 
failed to tackle crime.  END COMMENT) 
 
¶7. (SBU) Privately, officials from the public prosecutor's 
office (Ministerio Publico - MP) contacted Embassy Santiago's 
DEA office to solicit help on the case.  The lead prosecutor 
told the DEA Asst. Attache that Chile had never seen a case 
of this magnitude and had almost no experience prosecuting 
complex, precursor chemical cases involving ephedrine and its 
use in the production of methamphetamines.  DEA provided 
immediate support, including information about chemical 
precursors, the production and distribution of 
methamphetamines, and the market value of ephedrine in 
Mexico.  The MP successfully used this information during the 
arraignment hearings for the six arrested Chileans.   The MP 
has requested additional DEA assistance, specifically asking 
for help coordinating with Mexican counterparts and pursuing 
possible money laundering and asset seizure investigations 
tied to the case. 
 
PRESCRIPTIONS, IMPORT CONTROLS, AND INSPECTIONS INCREASED 
--------------------------------------------- ------------ 
 
¶8. (SBU) In light of these seizures, the GOC is taking steps 
to strengthen ephedrine and pseudo-ephedrine controls. 
CONACE, the Ministry of Health, and the Institute of Public 
Health (ISP) amended regulations to require prescriptions for 
consumers who want to purchase ephedrine and pseudo-ephedrine 
 
drugs.  Imports of pure quantities of ephedrine and 
pseudo-epehdrine will be limited to four national 
laboratories that are managed by the ISP, preventing small, 
independent drug laboratories from obtaining these products. 
These measures will reduce imports and increase oversight of 
ephedrine and pseudo-ephedrine in Chile. 
 
¶9. (SBU) CONACE is also supporting draft legislation in 
Congress that will enhance Chile's drug laws and has 
requested additional resources to monitor chemical 
precursors.  The draft legislation would expand CONACE's 
oversight to include companies that "commercialize or 
transport" chemical precursors, adding laboratories, 
pharmacies, hardware stores, and logistics companies to the 
list of entities that must register with CONACE.  Under the 
current law, chemical producers are the only companies 
monitored by CONACE.  There are currently five regulators 
responsible for conducting nationwide inspections, and CONACE 
wants to hire approximately 40 additional personnel to 
increase the number and frequency of inspections. 
 
COMMENT 
------- 
 
¶10. (SBU) While there are no reports of methamphetamines in 
crystalline form in Chile, the size of the ephedrine seizures 
and the connection to Mexico have forced the GOC to 
re-examine the issue of chemical precursors.   The GOC is 
taking its emerging precursor problem seriously and has 
developed a multi-pronged approach to tackle the issue. 
Requiring prescriptions for ephedrine and pseudo-ephedrine 
medications, increased oversight of ephedrine and 
pseudo-ephedrine imports, new legislation expanding the 
government's ability to regulate businesses that handle 
chemicals, and hiring additional inspectors are all steps in 
the right direction.  However, Chile has little experience 
dealing with chemical precursor regulations, investigations 
and prosecutions.  While Santiago's DEA Office has provided 
outstanding support, their efforts are largely operational. 
Post's INL budget -- $94,000 in FY08 designated for 
interdiction and judicial reform and no funding in FY09 -- 
does not allow for any support to Chile's nascent precursor 
control efforts.  END COMMENT. 
 
ACTION REQUEST 
-------------- 
 
¶11. (SBU) Cognizant of INL budgetary constraints, Post 
believes that a small amount of funding could play a critical 
role in supporting Chile's efforts to combat precursor 
trafficking, and requests $25,000 for specialized training 
for the 40 new inspectors to be hired by CONACE. 
SIMONS