VZCZCXYZ0000
RR RUEHWEB

DE RUEHSG #1032/01 3061838
ZNR UUUUU ZZH
R 021837Z NOV 09
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC 0209
INFO RUEHSG/AMEMBASSY SANTIAGO

UNCLAS SANTIAGO 001032 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR CI
SUBJECT: CHILE: INCSR 1 Submission 
 
REF: STATE 97230 
 
¶1. Per reftel, please find below Embassy Santiago's INCSR 1 
submission.  Post will also submit via email. 
 
¶2. Chile 
 
¶I. Summary 
 
Chile is a transit country for Andean cocaine shipments destined 
for Europe and has a domestic marijuana consumption problem.  In a 
new development that surfaced in 2009, Chile has been a source of 
ephedrine for methamphetamine processing in Mexico.  It is also 
potential 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 is an attractive transit country for drug traffickers because 
it shares long, difficult-to-monitor borders with Peru, Bolivia, 
and Argentina and has a number of international ports. Chile ranks 
second in per capita cocaine consumption and first in marijuana 
consumption among South American countries, according to the United 
Nation's 2009 World Drug Report.  Some marijuana is cultivated in 
Chile, but most is imported from Paraguay for use by Chilean 
teenagers and young adults.  Chilean police officials report an 
increase in drug trafficking from Bolivia in 2009.  Authorities 
also report a recent increase in the domestic supply of cocaine and 
a corresponding drop in price.  Chile's National Drug Control 
Commission (CONACE), which is responsible for formulating and 
implementing drug policies, released a study in 2009 that showed an 
increase in the perception of risk associated with drug use. 
 
 
 
III. Country Actions against Drugs in 2009 
 
 
 
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 2009, Chile 
assumed a leadership role in the international anti-narcotics 
community, serving as the president of the Organization of American 
States Inter-American Drug Abuse Control Commission (OAS/CICAD). 
Chile also hosted an EU-Latin America and Caribbean drug treatment 
conference and INTERPOL's 20th Regional Conference of the Americas. 
 
 
 
 
Chile classified "spice", a mixture of herbs and synthetic 
cannabinoid compounds that has effects similar to marijuana, as a 
prohibited drug in April.  CONACE maintained its pilot drug court 
program in Santiago, Valparaiso, Iquique and Antofagasta.  There 
are now 18 drug courts in Chile which are similar to U.S. drug 
courts in offering rehabilitation to drug offenders under judicial 
supervision. 
 
 
 
The Chilean Congress continued to evaluate legislation that would 
replace CONACE with a National Service for the Prevention of Drug 
Consumption and Trafficking.  The National Service would have 
responsibilities similar to CONACE, including the development and 
implementation of drug prevention and rehabilitation policies, but 
would report to a newly created Ministry of Public Security instead 
of the Ministry of Interior. 
 
 
 
Law Enforcement Efforts. Through June 2009, Chile reported seizures 
of approximately 1659 kilograms (kg) of cocaine; 2537 kg of cocaine 
paste; 6402 kg of processed marijuana; and 32,284 units of illegal 
pharmaceutical drugs.  Statistics were not available for heroin, 
Ecstasy, or LSD.  Noteworthy operations included the May 2009 
seizure of 243 kg of cocaine valued at $243 million near 
Antofagasta in northern Chile.  The seizure took place using aerial 
surveillance and resulted in six arrests. 
 
 
 
Chile's counternarcotics law enforcement efforts are led by the 
Carabineros de Chile (uniformed national police) and the Policia de 
Investigaciones (investigative police-PDI).  Both the Carabineros 
and the PDI have dedicated anti-drug units that are considered 
highly professional and competent.  Law enforcement efforts target 
 
both street level dealers and major traffickers and their 
organizations.  In 2009, Chilean law enforcement officials 
uncovered several advanced drug trafficking techniques, including 
highly compressed cocaine molded into the shape of suitcases.  The 
Carabineros continued to implement "Plan Vigia" (Plan Lookout) in 
northern Chile in response to increased drug trafficking from 
Bolivia.  The plan, which was initiated in 2008, increased 
anti-narcotic resources in northern Chile, including the 
introduction of aerial surveillance.  The National Customs Service 
acquired two truck scanners that are used to screen cargo at border 
crossings.  The Border Intelligence and Analysis Group continued to 
operate with limited success. 
 
 
 
Chile's Coast Guard, the General Directorate of Maritime Territory 
and Merchant Marine (DIRECTEMAR), is responsible for all maritime 
law enforcement activities, including counternarcotics.  DIRECTEMAR 
has more than 80 small, medium, and large vessels that patrol 
Chilean coastline and waterways and operates two Defender fast 
boats in Arica to intercept maritime drug shipping.  It coordinates 
with the Carabineros, PDI, and Customs agency to conduct maritime 
narcotics operations.  DIRECTEMAR's ability to confront maritime 
trafficking is limited by Chile's extensive coastline which 
stretches more than 4000 miles. 
 
 
 
Corruption. The Government of Chile (GOC) 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. 
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 such 
activities.  In cases where police are discovered to be involved in 
drug trafficking, or in protecting traffickers, simultaneous 
termination and investigation are immediate.  Chile is 
traditionally considered one of the least corrupt countries in the 
Western Hemisphere and ranked as the least corrupt country in South 
America in the 2008 Corruption Perception Index Survey released by 
Transparency International. 
 
 
 
Agreements and Treaties. Chile is a party to the 1961 UN Single 
Convention on Narcotic Drugs 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 and the United States and Chile are negotiating  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 and transit Chile via legal and 
illegal border crossings with Peru, Bolivia, and Argentina. 
Chile's borders with these three countries stretch more than 1300 
miles and there are approximately 150 illegal border crossings. 
Rough terrain inhibits efforts to intercept narcotics along the 
borders.  Narcotics transit out of Chile to Europe and possibly the 
United States by sea.  Inspection restrictions established by the 
treaty ending the War of the Pacific require Chilean authorities to 
seek permission from the Government of Bolivia to inspect cargo 
originating in that country and transiting Chile.  This impedes 
efforts to intercept illegal narcotics as it allows some cargo to 
pass through ports in Arica, Iquique, and Antofagasta without 
Chilean inspection.  Some narcotics also transit out of Chile via 
international airports in Santiago and Arica. 
 
 
 
Domestic Programs/Demand Reduction. CONACE has offices in all 15 
regions of the country and offers a wide variety of drug prevention 
and treatment programs.  Prevention programs target schools, 
families, and the workplace.  CONACE has also instituted a 
community fund that provides grants to local organizations that 
design and implement prevention programs.   Chile offers drug 
rehabilitation treatment through CONACE and the Ministry of Health 
 
at more than 200 health centers around the country.  Chile does not 
promote or sanction harm reduction programs. 
 
IV. U.S. Policy Initiatives and Programs 
 
Policy Initiatives. The USG works closely with Chile to strengthen 
Chile's ability to confront drug trafficking.  Specific U.S. goals 
include enhanced interagency cooperation among Chilean law 
enforcement entities, an increase in Chile's ability to conduct 
international drug investigations, and an increase in 
anti-narcotics resources in northern Chile.  Chile is a strong 
anti-narcotics partner and the U.S. works closely with Chilean 
partners to achieve shared objectives. 
 
Bilateral Cooperation. In 2009, the USG and GOC worked together to 
address interagency cooperation and complex, international drug 
investigations.  In March, Chilean law enforcement officials 
attended a money laundering presentation at the U.S. Embassy.  In 
June, police officers from the Carabineros and PDI participated in 
the ILEA Drug Unit Commanders Course in Lima, Peru.  In August, 
chemists from Chile's Institute of Health attended a week-long 
course at the DEA Laboratory in Washington, DC to enhance drug 
analysis intelligence.  In October, Drug Enforcement Administration 
(DEA) officers conducted a five-day Chemical Precursor course in 
Santiago.  DEA offices in Santiago, Lima, and Asuncion continued to 
support an Officer Exchange Program among their respective host 
nations in 2009.  Officials from the National Prosecutor's Office 
(Ministerio Publico) also traveled to the U.S. to participate in a 
chemical precursor course. 
 
 
 
The Road Ahead. The USG will continue to foster interagency 
cooperation, provide assistance in international investigations, 
and promote increased resources for northern Chile.  The USG and 
Chile formed a trilateral development partnership in 2009 to offer 
assistance, including law enforcement training and development, to 
other Latin America countries.  Chile is a strong anti-narcotics 
partner, and the USG encourages the GOC to continue its 
antinarcotics leadership. 
 
 
 
Chile: Chemical Precursors 
 
 
 
Chile has a large petrochemical industry engaged in the 
manufacturing, importation, and exportation of thousands of 
chemical products.  Chile has been a source of ephedrine for 
methamphetamine processing in Mexico.  In 2009, Chilean authorities 
arrested and prosecuted individuals who purchased large amounts of 
ephedrine through a local chemical company and then covertly sent 
the ephedrine to Mexico using commercial mailing companies.  Chile 
is also a potential source of precursor chemicals used in coca 
processing in Peru and Bolivia. 
 
 
 
Chilean law enforcement entities have specialized chemical 
diversion units.  Companies that import, export, or manufacture 
chemical precursors must register with CONACE, maintain customer 
records, and are subject to CONACE inspections.  There is pending 
legislation in the Chilean Congress to expand the list of companies 
subject to inspection by government authorities.  CONACE has also 
requested additional resources to hire more inspectors so it can 
provide stronger oversight and regulation of the petrochemical indu 
SIMONS