AUSTRIA: 2005 INTERNATIONAL NARCOTICS CONTROL

UNCLAS SECTION 01 OF 04 VIENNA 003888

SIPDIS

DEPT FOR INL AND EUR/AGS
JUSTICE FOR OAI, AFMLS, AND NDDS
TREASURY FOR FINCEN
DEA FOR OILS AND OFFICE OF DIVERSION CONTROL

E.O. 12958: N/A
TAGS: PTER AU
SUBJECT: AUSTRIA: 2005 INTERNATIONAL NARCOTICS CONTROL
STRATEGY REPORT (INCSR)

REF: STATE 209561

RESPONSES BELOW ARE KEYED TO REFTEL INSTRUCTIONS:

NOTE: THE INCSR'S MONEY LAUNDERING SECTION WILL BE SENT
SEPTEL.


I. Summary
--------------
Austria primarily serves as a transit country for drug
trafficking along major trans-European routes. Foreign
criminal groups from former East Bloc countries, Turkey,
West Africa, and Central and South America dominate the
organized drug trafficking scene. Drug consumption in
Austria is well below west European levels and authorities
do not consider it to be a severe problem. Production,
cultivation and trafficking by Austrian nationals remain
insignificant. The number of drug users is estimated at
between 15,000 to 20,000 - equaling fewer than 2 addicts per
1,000 inhabitants. According to a 2005 study, there is a
lifetime prevalence of drug abuse, primarily cannabis, of
approximately 25 percent, according to the Austrian
respondents.

Cooperation with U.S. authorities continued to be
outstanding during 2005. It led to significant seizures,
frequently involving multiple countries, and a series of
bilateral initiatives. The March 2005 visit of U.S. Drug
Czar John Walters to Austria, the autumn 2005 visits of
Interior Minister Prokop and Justice Minster Gastinger to
Washington, and Chancellor Schuessel's December 2005 meeting
with President Bush underscore the close bilateral
cooperation between the U.S. and Austria. In 2005, Austria
continued its efforts to intensify regional police
cooperation within the "Salzburg Forum," a meeting of
regional interior ministers. Austria also cooperates
closely with the Balkan countries and in the "Central Asian
Border Security Initiative" CABSI. Austria has been a party
to the 1971 and 1988 UN drug conventions since 1997. End
summary.

II. Status of country
--------------
Austria's drug situation did not see any significant change
during 2005. The number of drug-related deaths has
fluctuated between 100 and 150 over the past 5 years, but a
surge in Vienna's drug deaths earlier this year points to a
higher-than-normal overall figure for 2005. The number of
drug deaths from mixed intoxication continues to rise. The
latest available statistics for 2004 show a 12.6 percent
increase in drug-related offenses over 2003, for a total of
24,528 offenses. Of these, 535 involved psychotropic
substances and 357 involved precursor materials.

Experts estimate the number of conventional, illicit drug
abusers at around 20,000 (0.25 percent of total population).
The number of users of MDMA ("ecstasy") remained largely
stable in 2005, while usage of amphetamines rose during the
same period as these substances became increasingly
available in non-urban areas. According to a 2005 study,
which the Health Ministry commissioned, approximately one
fifth of respondents admitted to consumption of an illegal
substance. The respondents cited using mostly cannabis with
"ecstasy" and amphetamines in second and third place. Among
young adults (ages 19-29),about 30 percent admitted "some
experience" with cannabis at least once in their lifetime.
According to the study, 2-4 percent of this age group had
already used cocaine, amphetamines, and ecstasy, while three
percent have had experience with biogenetic drugs.

III. Country action against drugs in 2005
--------------
Domestic policy initiatives:

Throughout 2005, the Austrian government retained its "no
tolerance" policy regarding drug traffickers, while
continuing a policy of "therapy before punishment" for non-
dealing drug offenders. In a 2005 amendment, lawmakers
expanded a 2004 law that permits police to mount
surveillance cameras in high-crime public spaces. This law
also provides for the establishment of a "protection zone"
around schools, pre-schools, and old-age homes. The law
entitles police to ban any person suspected of drug dealing
within a protection zone from that area for up to 30 days.
In reaction to intense public discomfort over an increase in
the number of asylum seekers engaged in criminal activity,
including drug dealing, the federal government in 2005
enacted tighter asylum legislation and stricter citizenship
laws.
Following intense public debate in 2005, the government
decided to improve quality controls and take a more
restrictive approach regarding substitution treatment with
retarding morphine-therapy. Heeding a pertinent
international agreement, Austria included the substance
"zolpidem" in the control regime of the National Narcotics
Act. Adoption of substances 2C-1, 2C-T-2, 2C-T-7, and TMA-2
into the control regime is underway.

Regional/International Cooperation:

Throughout 2005, Austria maintained its lead role within the
Central Asian Border Security Initiative (CABSI) and the
VICA (Vienna Initiative on Central Asia) project. At the
same time, Austria intensified efforts to cooperate with
countries in the Balkans. Austria hosted events such as the
November 25, 2005 "Western Balkans Summit." Furthermore,
Austria continued to address drug trafficking and related
security issues through the "Salzburg Forum" - a recurring
ministerial-level security policy meeting which includes
representatives from Austria, the Czech Republic, Slovakia,
Poland, Hungary, and Italy. Also in 2005, Austria, together
with Italy, continued work on a project within the United
Nations Office on Drugs and Crime (UNODC) for reform of the
justice system in Afghanistan. In 2005, Austria continued a
project in cooperation with the UNODC, the EU, and Iran to
establish border control checkpoints along the Afghan-
Iranian border. Within UNODC, Austria participates in a
crop monitoring and alternative development plan in Peru.
As in past years, the Austrian interior ministry dispatched
anti-crime and drug trafficking liaison officers to Austrian
embassies in 20 countries in Europe and the Mediterranean,
including Russia, the Ukraine, Morocco, Syria, and Lebanon.

Law enforcement efforts and accomplishments:

Comprehensive seizure statistics for 2005 are not yet
available. Statistics for 2004 show a marked increase in
cannabis and cocaine seizures, and a minor surge in heroin
and amphetamine seizures. "Ecstasy" and LSD confiscations
remained stable at 2003 levels. In spring 2005, for the
first time, police confiscated "ecstasy" pills containing,
apart from MDMA, the substances MCPP and MDHOET. Experts
stress that the degree of purity and concentration of
"ecstasy," "speed," and other illegal substances has become
increasingly volatile, representing a growing risk factor.

The total street value of illicit drugs remained basically
unchanged during 2004-2005. One gram of cannabis sold for
EUR 7.00 (USD 8.20); one gram of heroin for EUR 60.00 to
95.00 (USD 70.20 - 111.10); and one gram of cocaine cost EUR
90.00 (USD 105.30). Amphetamines sold for EUR 20.00 (USD
23.4) per gram, and LSD for EUR 30.00 (USD 35.10) per gram.

In 2004 (figures for 2005 not yet available) authorities
registered 21,118 seizures of drugs containing psychotropic
substances, 35 percent more than in 2003. The number of
criminal cases involving precursor materials rose by 38
percent, from 93 in 2003 to 128 in 2004. For 2005,
officials expect higher seizure figures for heroin and
cocaine, and a significant reduction in seizures of ecstasy.

Corruption:

The GOA's public corruption laws recognize and punish the
abuse of power by a public official. Austria has been a
party to the OECD anti-bribery convention since 1999.
Austria is currently working on an amendment to broaden the
1999 law to eliminate the tax deductibility of bribes and
gray market payments. There are no corruption cases pending
that involve bribery of foreign public officials. The
government has not yet prosecuted any cases, which would
test the degree of the current law's enforcement. The U.S.
government is not aware of the involvement of any high-level
Austrian government officials in drug-related corruption.
According to Transparency International, a Berlin-based
research group, Austria ranks among the top ten least
corrupt countries out of 159 countries in its 2005 survey.

Agreements and treaties:

An extradition treaty and mutual legal assistance treaty are
in force between Austria and the U.S. The extradition
treaty contains a caveat that would permit Austria to
require a formal assurance prior to extradition that the
death penalty would not be imposed or carried out.

In 2004, Austria enacted legislation to implement the EU
council framework decision on the European arrest warrant
and the surrender procedure between member states.

Austria is a party to the 1988 UN drug convention, the 1961
single convention on narcotic drugs and its 1972 protocol,
and the 1971 UN convention on psychotropic substances.
Vienna is the seat of the United Nations Office on Drugs and
Crime (UNODC). Austria is also a "major donor" to the
UNODC, with an annual pledge of approximately $440,000.
Austria ratified the UN convention against transnational
organized crime in 2004.

Cultivation:

Production of illicit drugs in Austria continued to be
marginal in 2005. Experts note a minor rise in private,
indoor-grown, high-quality cannabis. Austria recorded no
domestic cultivation of coca, opium, or cannabis in 2004 or

2005.

Drug flow/transit:

Austria is not a source country for illicit drugs. Illicit
drug trade by Austrian nationals is negligible. Foreign
criminal groups (e.g. Kurdish clans from Turkey, Albanians,
nationals from the former Yugoslavia, West African gangs,
and Central and South American gangs) carry out organized
drug trafficking in Austria. Counternarcotics officials
note a slight decrease in body-packing drug smuggling in
favor of other, conventional means of transportation. The
illicit trade increasingly relies on Central and East
European airports, including in Austria.

Trafficking of ecstasy products (originating in the
Netherlands) decreased slightly in 2004 from 2003. Illicit
trade in amphetamines and trading in cocaine increased.
Criminal groups from Poland and Hungary were primarily
responsible for this trade.

Domestic programs (demand reduction):

Austrian authorities and the public generally view drug
addiction as a disease rather than a crime. This is
reflected in rather liberal drug legislation and in court
decisions. The center-right government made the fight
against drug trafficking a major policy goal. At the same
time, the government remains committed to measures to
prevent the social marginalization of drug addicts. Federal
guidelines ensure minimum quality standards for drug
treatment facilities. The use of heroin for therapeutic
purposes is generally not allowed. Demand reduction puts
emphasis on primary prevention, drug treatment, counseling,
and so-called "harm reduction" measures, such as needle
exchange programs. Ongoing challenges in demand reduction
are the need for psychological care for drug victims and
greater attention to older victims and to immigrants.

Primary intervention starts at the pre-school level and
continues through secondary school, apprenticeship
institutions, and out-of-school youth programs. The
government and local authorities routinely sponsor
educational campaigns both within and outside of educational
fora. Overall, youths in danger of addiction are primary
targets of new treatment and care policies.

Austria has syringe exchange programs in place for HIV
prevention. HIV prevalence rate among drug-related deaths
slightly increased to 8 percent in 2004, while hepatitis
prevalence rates declined. Policies toward greater
diversification in substitution treatment (methadone,
prolonged-action morphine, and buprenorphine) continued.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation

Cooperation between Austrian and U.S. authorities continued
to be excellent in 2005. Although Austria has no specific
bilateral narcotics agreement with the U.S, several
bilateral efforts exemplified this cooperation. These
include joint DEA and BKA (Criminal Intelligence Service)
training at the International Law Enforcement Academy; the
drafting of a criminal asset sharing agreement between the
U.S. and Austria; and DEA support of a BKA plan to initiate
Joint Investigative Teams with Balkan countries to combat
the flow of Afghan heroin. Austrian interior ministry
officials continued to consult the FBI, DEA, and Department
of Homeland Security on know-how to update criminal
investigation structures. The U.S. Embassy also regularly
sponsors speaking tours of U.S. counter-narcotics experts in
Austria.

In March 2005, John Walters, Director of the Office of
National Drug Control Policy, spoke at the UN Commission on
Narcotic Drugs, and held bilateral meetings with Austrian
National Drug Coordinator Franz Pietsch and other drug
policy and treatment experts in Vienna. Walters highlighted
the excellent, ongoing cooperation between U.S. and Austrian
law enforcement authorities, and he exchanged views with his
counterparts on "harm reduction" techniques. The October
2005 visits to Washington by Interior Minister Prokop and
Justice Minister Gastinger, and Chancellor Schuessel's
meeting with President Bush in December 2005, solidified the
close U.S.-Austrian law enforcement connection.

The road ahead:

The U.S. will continue to support Austrian efforts to create
more effective tools for law enforcement. The U.S. will
work closely with Austria during its EU Presidency and
within other U.S.-EU initiatives, the UN, and the OSCE. Our
priority will remain promoting a better understanding of
U.S. drug policy among Austrian officials.


V. Statistical tables not required

VI. Chemical control not required
McCAW