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06SANJOSE258 2006-02-01 21:14:00 UNCLASSIFIED Embassy San Jose
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					  UNCLAS SECTION 01 OF 04 SAN JOSE 000258 



E.O. 12958: N/A

REF: STATE 222564

1. Per Reftel Embassy San Jose provides the following information
regarding end-use monitoring of resources acquired with U.S.
Department of State International Narcotics Control (INL) funds.

2. Procedures: Embassy San Jose INL section maintains an
inventory of donated property using an Excel spreadsheet. The
Embassy's Information Systems Center continues to work on
creating a program to transfer the inventory system from the
Excel spreadsheet to a new database to facilitate the issuance of
reports. Post's INL section has been using its own numbering and
label system to keep track of items donated since April 2003 as
NEPA (Non-expendable property application) labels can no longer
be used for INL purchased items. All donated equipment is also
documented with a specific donation document signed by an Embassy
representative and the senior official from the recipient GOCR
agency. The donation document specifies the equipment being
donated and notes the inventory and manufacturer's serial number.
Donation documents include the following text: "If the donated
items do not meet the user's needs, according to the letter of
agreement, then the items may not be reassigned to another
Department and the U.S. Embassy Political Section must be
notified immediately."

3. The Embassy's Narcotics Affairs Officer, DEA Special Agents,
and Office of the Defense Representative periodically visited
Costa Rican counternarcotics installations and verified the
proper use and continued maintenance of equipment acquired with
INL funds. The Drug Control Police (PCD), Narcotics Section,
Financial Crimes Unit, and Cybercrimes Unit of the Organization
for Judicial Investigations (OIJ), Costa Rican Coast Guard
(SNGC), Air Surveillance Section (SVA), and the Costa Rican
Institute Against Drugs (ICD) formerly CICAD all used such
equipment and training in their operations according to the terms
of Letter of Agreement (LOA's) signed with the GOCR. Regular
monitoring of INL-supported projects provides an ongoing
opportunity for specific end-use monitoring, program evaluation,
and identification of additional ways to increase program

4. Resources and status: Embassy San Jose has delivered INL
funded commodities and services to GOCR authorities in the
categories below:

A. Computer Equipment

Coast Guard (SNGC) Academy: In CY 02, CY 03, and CY 04 Post INL
donated a Compaq computer, a Toshiba laptop computer, a Sony
notebook Pentium 4 laptop computer, a Sony digital camera, a Sony
camcorder, an HP office jet print/copy/scan/fax, and a Riso high-
speed reproduction printer in support of the Coast Guard Academy.
All of this equipment is located at the SNGC Academy in Golfito
and is being used for its intended purpose.

Police Academy: In CY 05, Post INL donated a Toshiba laptop,
Epson Printer, and video projector to the Instructor Development
Section of the Police Academy.

Precursor Control: In CY 02 Post INL funded the purchase of
computers and peripherals consisting of a Jaguar computer with
monitor, Microsoft XP and antivirus software, HP desk jet
printer, Epson printer, and a Powerlite LCD projector. The
computer is supplementing a Dell computer and monitor donated in
CY 00. This equipment was originally donated to the Ministry of
Health which at the time had responsibility for precursor
chemical control. In 2004 the Precursors Chemicals Office was
moved from the Health Ministry to the new ICD's headquarters.
The Computers and peripherals are now located in this building
and continue to be used for their intended purpose.

OIJ Narcotics Section: In CY 01, 02, 03, and 04 Post INL donated:
7 Dell Computers, a Cannon Digital Copier, 4 Jaguar computers, 2
Jaguar high performance Pentium IV computers, an Apple computer
with monitor and DVD recorder, 3 HP deskjet printers, 1 laserjet
printer, and 2 Sony digital photo printers. The equipment is
located at OIJ Narcotics Section offices around the country and
is being used to support ongoing counternarcotics

CSE Prosecution Unit: In CY 02, Post INL donated 1 Jaguar
computer, 3 HP foldable keyboards for HP IPAQ pocket PC, and 1
piece of specialized transmission/reception equipment to the
Child Sexual Exploitation Unit of the Prosecutor's Office. A
voltage spike burned out the Jaguar computer in 2004, the rest is
being used for its intended purpose.

Narcotics Control Police (PCD): In CY 01, 02, 03 and 04 Post INL
donated 3 Jaguar computers, 1 Dell Optiplex computer, 1 Imac Ruby
computer, a hard disk, an Apple computer with DVD burner,
computer software and licenses, computer 48-port switch, a 4-port
analog module for connectivity outside San Jose, 1 HP printer, 1
Applied Magic video editor, and Mapinfo geographic information
system (GIS) software. The Jaguar and Apple computers are
installed in the PCD's Counternarcotics Information Center (CIPA)
in San Jose. The 4-port analog module is stored at the Ministry
of Public Security. The Optiplex computer is used to support the
growing number of electronic intercept investigations being
worked with the Prosecutor's Office. All equipment is being used
for its intended purpose.

OIJ K-9 Unit: In CY 01 and 03 Post INL donated 3 Jaguar Pentium
III computers, HP deskjet printer, HP scanjet scanner, 3 ups, two
24-switch ports, and 2 optical fiber converters. This equipment
is at the OIJ's K-9 Unit in Heredia and is being used for its
intended purpose.

ICD Software: Post INL financed the development of administrative
software to enhance ICD's operational capabilities. The software
has had numerous problems and is currently fulfilling 65% of its
intended functions. ICD officials believe the developer will be
able to complete the installation of this software in 2006.

Guardian Software: Post INL funded the purchase of computer
software in 2003 that enabled ICD to electronically communicate
with the El Paso Intelligence Center (EPIC) using the DEA
Guardian software in the format required by EPIC. It was
installed in PCD and SNGC offices around Costa Rica and is
running well.

B. Communications Equipment

Communications Network for SNGC and SVA: In CY 02, Post INL
funded the purchase of a new communications network for SNGC and
SVA vessels and aircraft. The system is still non-operational.
ICE (state-owned telecommunications monopoly) has provided
frequencies to the vendor on two separate occasions, however,
upon testing it was determined that the frequencies were being
used by other parties. The vendor has been slow to provide
equipment. Post INL and Ministry of Public Security officials
are reviewing legal options against the vendor. Previously we
reported that over 50 percent of the funds for this purchase had
not been released. Upon closer review of our records, it appears
that over 70 percent of the funds for this project had been
released as of 2003.

C. Vehicles

Mobile Enforcement Team (MET): In CY 02, 03 and 04 Post INL
provided vehicles and equipment for the Ministry of the
Presidency's MET. INL funded the purchase of a customized
utility truck, utility van, two motorcycles, trailer, a Honda
generator, tools, and equipment for the vehicles. The MET
conducts counternarcotics operations as well as a number of cross-
border training exercises with counterparts in Nicaragua and
Panama. Mechanical problems plagued the truck, and particularly
its transmission, during 2004. During 2005 the MET deployed less
frequently than in 2004. One deployment, however, lasted 10 days
and supported the regional "All Inclusive" exercise.

2003 FORD E-150 8-Passenger Van for PCD: In CY 03 Post INL
donated a Ford van to support PCD operations throughout the
country. The van is being used for its intended purpose.

2003 FORD E-350 15-Passenger van for MPS K-9 UNIT: In CY 03 Post
INL donated a Ford Van to support MPS K-9 Unit operations. The
van is maintained at the MPS K-9 facility located at the Juan
Santamaria International Airport in San Jose. In CY 04 tools
were provided for the van which kept in a locked box inside the
van and a single officer is in charge of the inventory. This
equipment has provided a significant morale boost to the K-9
unit, allowing the unit to deploy anywhere in the country.

2003 TOYOTA RAV-4s FOR OIJ: In CY 03 Post INL purchased 2 Toyota
RAV-4s for donation to the Organization for Judicial
Investigations (OIJ) to conduct undercover surveillance
operations. The vehicles were formally donated in February,
2004, and are being used for their intended purpose.

2003 FORD F-250 XL Truck for SNGC: In CY 03 Post INL funded 50
percent of the total amount to purchase a Ford F-250 truck which
allows the SNGC to transport patrol craft to the different Coast
Guard Stations around the country. The SNGC provided 50 percent
of the funding for this vehicle with the understanding that it
would be subject to the same end use monitoring requirements as
any other vehicle purchased with INL funds. It is being used for
its intended purpose.

D. Vessels

COASTAL PATROL CRAFT: Before restrictions on such donations came
into effect due to the absence of a bilateral Article 98
agreement, the USG provided Costa Rica with three 82-ft
decommissioned USCG cutters as a donation of Excess Defense
Articles (EDA) in CY 1999 and 2001. Transfer packages for these
vessels were supported with Post's INL funds, and included the re-
fitting of all electronics and communication systems, training
for the SNGC crews, and a full complement of spare parts.

The ship "Juan Santamaria" is stationed in the Atlantic port town
of Limon, and the "Juan Rafael Mora" in the Pacific port town of
Puntarenas. The "Pancha Carrasco" is stationed in the southern
Pacific coast town Golfito. All ships are operational and are
being used for their intended purpose.

craft were transferred to SNGC in CY 00, 01, and 02. Each RHI is
equipped with two Honda 130 hp outboard engines and complete
rigging, electronics, and safety equipment. None are
operational. These locally manufactured vessels have experienced
numerous problems with the inflatable section of the hull.

FIBERGLASS FAST BOATS: two 26-foot fiberglass fast boats were
donated to the Ministry of Public Security in CY 02. Each fast
boat is equipped with two 120 horsepower Mercruiser diesel
engines, complete rigging, electronics, and safety equipment.

E. Canine Program

Ministry of Public Security K-9 Unit: In CY 03 Post INL
contracted with CSI International for five narcotics detection
dogs with a one-year training and certification package. The
contract called for the delivery of five narcotics detection dogs
and an initial two-week training course, followed by monthly
follow-up training, leading to certification. One of the dogs
died of chronic ehrlichiosis (transmitted by infected ticks) in
June 2004. Another dog needed surgery for coxofemoral dysplasia
in 2005. MPS K9 handlers were certified on September 18, 2004.
CSI has not followed through on promises to address concerns
about the quality of the dogs it provided. Post will not
consider CSI for future procurements.

F. Construction Projects

Ministry of Public Security Penas Blancas Border checkpoint: In
CY 02 Post INL provided funding for the construction of a
counternarcotics inspection station at Penas Blancas, located at
a natural chokepoint on the border between Costa Rica and
Nicaragua. The inspection station modernized this busy border
crossing and facilitated cargo inspections that otherwise would
not have occurred. In CY 03 Post INL funded the purchase of
tools, furniture, and other equipment to outfit the inspection
station. Also in CY 03, Post INL secured the donation of a 40-
kilowatt Cummins diesel-powered electrical generator from Embassy
San Jose for the border inspection station. Construction was
completed in November 2003 with the exception of minor
modifications. The inspection station was formally donated in
April, 2004. Regular operations began in March 2004 and problems
arose with the building's structure, drainage and electrical
systems, fans, and air conditioners almost immediately. Regular
visits by the contractor and better maintenance by the users have
addressed some of the problems. However, ongoing drainage
issues, combined with cracks in the floors and walls, point to
problems with the initial site preparation by the Army Corps of

Coast Guard Station in Quepos: Post's INL funds were used to
construct a 3000 square foot two-story building with a
storage/maintenance facility for two fast boats. It also
includes a dormitory for 15 personnel, kitchen, dining
facility/conference room, operations center, and storage
facilities. Furniture, computer software, fax, a cordless phone
and two file cabinets were purchased with INL funds to outfit the
station. The coast guard station is located in the Pacific port
town of Quepos and has been operational since November 2003. The
station and the equipment were formally donated to the SNGC in
February 2004.

G. Miscellaneous Equipment

Immigration Directorate: In CY 02 Post INL donated 60 optical
passport readers, 5 mobile inspection terminals and funded the
development of specialized software for the Directorate of
Immigration. The optical passport readers are located at the
Juan Santamaria, Daniel Oduber, and Tobias Bolanos international
airports, Ports of Puntarenas, Limon and Quepos, and the border
crossings at Paso Canoas and Penas Blancas. Three mobile
inspection terminals are located in the maritime inspection
stations of Limon and Puntarenas and are rotated between ports.
Two are maintained at the San Jose office to be deployed randomly
throughout the country. The software is performing as expected.
One of the mobile passport readers was damaged by a water leak in
the ceiling above the reader.

Air Surveillance Section (SVA): In CY 02 and 03, Post INL
donated eight GPS navigation systems for SVA aircraft, and two 6-
man aviation life rafts with canopies. The donated GPS
navigation systems have been installed in the aircrafts and are
functioning properly. The life rafts and maintenance parts are
being properly stored, logged, and used for their intended
purpose at the SVA's facilities at Base 2, Juan Santamaria
International Airport in San Jose.

PCD: In CY 01 Post INL donated five complete contraband detector
kits to the PCD. Two of the kits are currently deployed with PCD
units located at the Penas Blancas and Paso Canoas border
checkpoints. One is in the possession of DEA for re-calibration
and the remaining two are at PCD headquarters in San Jose. This
equipment has proven highly effective in detecting cocaine
secreted in hidden compartments, the fuel tanks and tires of

tractor-trailers crossing into Costa Rica. An additional kit
used for training by Post's Customs Advisor was donated to the
PCD in 2004, when the Customs Advisor position was vacated due to
lack of funds. All of these detectors are heavily used and
getting old. Costly re-calibration of the density meters is
required with increasing frequency. One of the density meters
(belonging to the kit donated in 2004) was lost during an

Undercover Surveillance Equipment: In CY 03 and CY 04 Post INL
funded the purchase of technical equipment to provide video and
audio surveillance in PCD operations. This equipment is highly
versatile, essential for officer/agent safety, and has been used
for documentation of undercover narcotics purchases, providing
valuable documentary evidence that has been used in criminal
judicial proceedings. In addition, Post INL donated 2 Panasonic
digital camcorders, 7 digital Handycams, 60 remote GE tape
recorders, 1 scanner, 1 Sony GVD 1000 video recorder, 2 Panasonic
13" monitors, and five night vision goggles to support undercover
operations. All this equipment is well maintained and being used
for its intended purpose.

Cameras and other video equipment: In CY 02, 03, and 04, Post INL
donated 2 Epson digital cameras, 2 Sony digital camcorders, 3
Sony digital cameras, 2 Panasonic digital camcorders, 10 night
vision goggles, 5 binoculars, 6 double cassette decks, 2 micro
recorders disguised as cigarette packs, 2 micro recorders
disguised as eyeglass cases, 3 Sony standard cassette
transcribing machines, 3 Sony micro cassette transcribing
machines, and 2 Sony minidvd camcorders to the OIJ Narcotics
Section. One of the Sony digital camcorders was stolen in May
2003 and the 6 double cassette decks proved unsuitable for their
original purpose. The OIJ Narcotics Section returned them to its
Procurement Office instead of the Embassy where they were
redistributed among OIJ offices in San Jose and two courts.
Otherwise, all this equipment is being used for its intended

Demand Reduction Videos: In 2003 Post INL funded the purchase of
a 3-minute video and five 30-second broadcast advertisements. In
2005 Post funded a new master video and related material to
continue with this program.


Embassy San Jose engaged in a $2.15 million, three-year (2000-
2003) SNGC Development Plan with Colombia Supplemental funding
($1.9 million) and Post's INL funds, following implementation of
the bilateral maritime agreement. As a result, the SNGC
experienced significant growth, increased its operational
capability, and has become a more professional organization. In
2005, increased trafficking of narcotics by maritime routes has
apparently continued, with 11 incidents and a total of 3,620
kilos of cocaine seized at sea in 2005. Another 2,548 kilos were
seized in the vicinity of a grounded go-fast boat. Traffickers
used Costa Rican-flagged fishing boats to smuggle drugs and to
provide fuel for other go-fast boats.

Approximately $600,000 in Post's INL funds in CY 02 and 03 were
used in the construction of the Penas Blancas border checkpoint.
Located at a natural chokepoint on the Pan-American Highway, this
investment has paid off handsomely, with over 1,000 kilos of
cocaine seized since it was formally donated in 2004. Penas
Blancas represents a permanent deterrent to overland narcotics

The numerous computer systems donated to the various GOCR
agencies (over $20,000 in 2005) have increased interagency
cooperation by allowing easier communication and information-
sharing between agencies. This has led to a more integrated
approach to counter-narcotics operations and helped address a
critical resource shortage.

Undercover surveillance equipment donated by Post INL has led to
the corroboration of intelligence obtained by the OIJ and the DEA
Costa Rica Office. The equipment has also greatly enhanced
officer safety and resulted in higher conviction rates.

Embassy San Jose POC is Robert Copley,