ONDCP DIRECTOR WALTER'S NOVEMBER 8 MEETING WITH

C O N F I D E N T I A L SECTION 01 OF 02 BOGOTA 010891

SIPDIS

DEPARTMENT FOR INL/LP AND WHA/AND
ONDCP FOR DIRECTOR WALTERS

E.O. 12958: DECL: 11/21/2015
TAGS: PGOV SNAR CO
SUBJECT: ONDCP DIRECTOR WALTER'S NOVEMBER 8 MEETING WITH
DNE DIRECTOR VIVES


Classified By: CHARGE MILT DRUCKER FOR REASONS 1.4 (B) AND (D)


1. (C) SUMMARY. During his visit to Colombia, Office of
National Drug Control Policy (ONDCP) Director John Walters
met with the Director of Colombia's National Directorate on
Dangerous Drugs (DNE),Juan Vives. Dr. Vives and his DNE
colleagues briefed Director Walters on DNE activities,
including DNE,s role in asset forfeiture. Director Walters
reviewed statistics on demand reduction in the USA as well as
emerging information on changes in the cocaine market in the
USA. END SUMMARY.


2. (C) As part of a trip to Colombia, ONDCP Director John
Walters visited Colombia,s DNE Director Dr. Juan Vives on
November 8, 2005.


3. (C) The U.S. participants in the meeting were:
--ONDCP Director John P. Walters
--ONDCP Assistant Deputy Director Patrick Ward
--ONDCP Colombia Policy Analyst Richard O,Connor
--NAS Director Julie Gianelloni Connor
--NAS Program Officer Paul Dever

The Colombian participants were:
--DNE Director Juan Vives Menotti
--DNE Deputy Director for International Relations Carlos
Medina
--DNE Legal Advisor Camilo Guzman
--DNE Deputy Director for Chemical Precursors Marta Romero
--DNE Officer for Media Maria Elena Romero

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Colombian Seizure Laws and Effect
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4. (C) DNE Director Vives detailed the successes and the
(minor) drawbacks of the Colombian Asset Seizure Laws. The
assets confiscation process is a victim of its own success.
The state is confiscating more property (to include vehicles,
watercraft, aircraft, buildings, companies, and farms) than
it can manage. They know that they have seized over 32,000
properties but are unable at this time to complete a proper
inventory due to lack of assessors and other qualified people
to verify the value of the properties seized. While they
cannot give an accurate figure on the value of seized goods,
their ballpark figure is USD 482 million. (Post comment: the
Colombian seizure laws state that property seized must be
maintained in the same condition in which it was seized in
case the goods are returned rather than forfeited. End
Comment.)


5. (C) DNE uses USG-donated computer software, FARO, to track
all of the 32,000 seized properties, and another system,
FRISCO, to track those properties for which they have title.
At present, the GoC holds title for only 3,000 items, or less
than 10% of the seized properties.


6. (C) Director Vives explained that there are legal
constraints to the seizure process. It can take several years
to resolve a case, and in the interim the state must take
care of the property. It is difficult to find qualified
caretakers due to the danger attached to caring for
confiscated property due to the personal threats often levied
against DNE-appointed managers. An example Vives gave was a
dairy farm which needs daily attention from qualified workers.


7. (C) Director Vives gave a short history of the seizure
process: The law governing seizures was improved in 2002.
Previously, the district attorneys who dictated the
confiscation orders did not have to include complete
information regarding the seized assets. As a result, DNE,s
records on assets seized prior to 2002 are incomplete. Since
the implementation of the new law in 2002, the records are
more accurate and detailed. Proceeds from the auction of
confiscated properties beginning in 2006 will go to support
the construction of new prisons for the next ten years.
Also, seized cash is portioned out to several national
agencies, including the police.


8. (C) When asked why farmers are not being arrested for coca
cultivation, DNE Observatory Director Carlos Medina stated
that the law was implemented mainly for the large traffickers
and that, although cultivation is illegal, their target is
large-scale traffickers. (Post comment: Almost no one has
been arrested and charged with coca cultivation; confiscation
procedures are mainly brought against traffickers. End
comment.)


9. (C) Director Walters expressed concern about the seizure
process and its difficulties. DNE Director Vives explained
that the Colombian government is doing what it can to
streamline the process so there are fewer difficulties and a
shorter process.

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REASONS FOR LITTLE CHANGE IN PRICE OR PURITY OF COCAINE
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10. (C) Director Walters discussed possible reasons why the
price and purity of cocaine over the years had not changed.
First, while the supply is decreasing, so is the demand in
the USA. Director Walters offered statistics on the decline
in drug usage among young Americans. In addition, Director
Walters said that the overproduction of cocaine in the
1980,s and 1990,s surpassed consumer demand and led to a
reserve being built up. It has taken several years of
intense GOC eradication and interdiction for this reserve to
be drawn down. Director Walters also noted that the coca
production pipeline stretches from 12 to 24 months, so
immediate price change is not guaranteed. Director Walters
stated that he was optimistic that there would shortly be
good news on positive trends in the USA showing an increase
in cocaine prices and a decrease in cocaine purity (NOTE: On
November 17,2005, Director Walters did announce significant
progress in reducing the purity of cocaine in the U.S. and
raising its price.)


11. (C) DNE Director Vives felt that was possible, but he had
another theory: synthetic drugs. He expressed concern that
synthetic drugs will soon replace cocaine as the drug of
choice. His fear is that knowledgeable Colombian chemists
will turn to producing and exporting these newer, more
dangerous drugs.


12. (C) Concerning demand reduction, Director Vives explained
that the Ministry of Social Welfare currently has the
responsibility for prevention and anti-drug education
policies and programs. The DNE, which some years ago was
responsible for this area, would like to resume work on
demand reduction. Dr. Vives is seeking approval for this.


13. (C) Director Vives reported that another major area of
DNE work is the "Drug Observatory," which is the GOC,s
official compilation of data on drug issues in Colombia. DNE
Deputy Director Medina heads this project. An annual report
giving data concerning illegal drugs in Colombia is
published, and an English translation of the latest volume is
being prepared with USG financial assistance.


14. (C) COMMENT. Since Dr. Vives took over the directorship
of the DNE in May 2005, the Embassy has enjoyed a good
working relationship with DNE. NAS has been consulting on
ways to collaborate with the DNE, especially on demand
reduction projects and on anti-drug media campaigns. Regular
joint DNE-NAS meetings have begun. END COMMENT.

DRUCKER
DRUCKER