2006 JAPAN INCSR PART I

UNCLAS SECTION 01 OF 03 TOKYO 006569

SIPDIS

SIPDIS

INL

E.O. 12958: N/A
TAGS: SNAR SOCI JA
SUBJECT: 2006 JAPAN INCSR PART I

--------------

I. Summary
--------------


1. (U) Japan's efforts to fight drug trafficking comply with
international standards. A party to the 1988 United Nations
Convention Against Illicit Trafficking in Narcotics, Japan
cooperates with other countries in intelligence sharing and
law enforcement. Methamphetamine abuse remains the biggest
challenge to Japanese anti-narcotics efforts, but MDMA
(ecstasy) trafficking has also become a persistent problem.
Cocaine and marijuana use is relatively smaller in scale, but
still significant. According to Japanese authorities, all
illegal drugs consumed in Japan are imported from overseas,
usually by organized crime syndicates and foreign drug
trafficking organizations. In spite of bureaucratic
obstacles, Japanese law enforcement officials are proactively
addressing the problem, and have conducted precedent-setting
operations in cooperation with DEA Tokyo. Although drug
seizures are down from 2005 levels, continuing
short-supply-driven high street prices indicate that law
enforcement has been effective.


--------------
II. Status of Country
--------------


2. (U) Japan is one of the largest markets for
methamphetamine in Asia. A significant source of income for
Japanese organized crime syndicates, over 80 percent of all
drug arrests in Japan involve methamphetamine. The National
Police Agency (NPA) estimates there are 600,000
methamphetamine addicts, and between one and three million
casual users nationwide. Authorities unofficially estimate
that between four and seven metric tons is trafficked
annually into Japan. MDMA has also become a significant
problem in Japan; over 50,000 ecstasy tablets had been seized
by police as of September 2006, and officials say that they
expect MDMA abuse to increase. Marijuana use has also grown
steadily in Japan since 2000.


3. (U) Japan is not a significant producer of narcotics. The
Ministry of Health, Labour and Welfare strictly controls some
licit cultivation of opium poppies, coca plants, and cannabis
for research. According to DEA and the National Police
Agency, there is no evidence that methamphetamine or any
other synthetic drug is manufactured domestically.

--------------
III. Country Actions Against Drugs in 2006
--------------


4. (U) POLICY INITIATIVES: The Headquarters for the Promotion
of Measures to Prevent Drug Abuse, which is part of the Prime
Minister's Office (Kantei),announced the Five-Year Drug
Abuse Prevention Strategy in July 2003. This strategy
includes measures to increase cooperation and
information-sharing among Japanese agencies as well as with
foreign countries, utilize more advanced investigation
techniques against organized crime syndicates, and raise
awareness about the dangers of drug abuse. The Ministry of
Health, Labour and Welfare added 30 more drugs to its list of
controlled substances in 2006.


5. (U) LAW ENFORCEMENT EFFORTS: Japanese police are
effective at gathering intelligence and making arrests, in
spite of operating under a number of legal and operational
constraints. Prosecutors do not have the option of
plea-bargaining in Japan, which severely limits the amount of
information police can extract from the people they arrest.
Japan also has laws restricting the use of informants,
undercover operations, and telephone intercepts. Officials
nevertheless maintain detailed records of Japan-based drug
trafficking, organized crime, and international drug
trafficking organizations. Japan regularly shares
intelligence with foreign counterparts and engages in
international drug trafficking investigations. The National
Police Agency and Tokyo Metropolitan Police conducted two
groundbreaking operations in 2006 with DEA's assistance.
Using technically sophisticated methods to attack organized
crime drug traffickers, officers seized 30 kilograms of
Nepalese cannabis resin in July and two kilograms of Peruvian
cocaine in September.


6. (U) The decrease in drug seizures in 2006 could be a sign
of reduced supply. The closure of several methamphetamine
mega-labs in Indonesia, Malaysia, and the Philippines as well
as Japan's increased international cooperation may be
limiting the flow of drugs into the country. The fact that
drug prices have risen in the last year strongly suggests

TOKYO 00006569 002 OF 003


that there has not been an increase in the supply on the
street. As of September 2006, police had seized 45 kilograms
of methamphetamine, a significant decrease from the 126
kilograms confiscated during the same period in 2005.
Marijuana and cannabis resin seizures as of September 2006
were 154 kilograms and 57 kilograms respectively, over a
third less than the same period of the previous year. MDMA
seizures during January-September fell from 350,000 tablets
in 2005 to only 50,000 in 2006. Cocaine, heroin, and opium
seizures remained roughly at their 2005 levels: 3 kilograms,
1 kilogram, and 3 kilograms respectively.


7. (U) CORRUPTION: There were no reported cases of Japanese
officials being involved in drug-related corruption in Japan
in 2006. The government does not encourage or facilitate the
illicit production or distribution of narcotics, psychotropic
drugs, controlled substances, or the laundering of proceeds
from illegal drug transactions.


8. (U) AGREEMENTS AND TREATIES: Japan abandoned efforts to
pass an anti-conspiracy bill this year, a major step backward
for a country otherwise very progressive on fighting illegal
narcotics trafficking. As a result, Japan cannot ratify the
UN Convention on Transnational Organized Crime. Japan is a
party to the 1988 UN Drug Convention, the 1961 UN Single
Convention on Narcotic Drugs, the 1972 Protocol amending the
Single Convention, and the 1971 UN Convention on Psychotropic
Substances.


9. (U) The United States-Japan Mutual Legal Assistance
Treaty (MLAT) went into effect in August 2006, Japan's first
MLAT with any country. The MLAT, which includes an
extradition agreement, allows Japan's Ministry of Justice to
share information and cooperate directly with the Department
of Justice in connection with investigations, prosecutions
and other proceedings in criminal matters.


10. (U) CULTIVATION/PRODUCTION: Japan is not a significant
cultivator or producer of controlled substances. The
Ministry of Health, Labour, and Welfare's research
cultivation program produces a negligible yield of narcotic
substances.


11. (U) DRUG FLOW/TRANSIT: Authorities believe that
methamphetamine smuggled into Japan originates in the
People's Republic of China (PRC),Taiwan, North Korea, Burma,
Malaysia, Indonesia and the Philippines. Drugs other than
methamphetamine often come from the these same source
countries, however airport customs officials have made
several recent seizures of cocaine coming from the United
States, and authorities confirm that methamphetamine and
marijuana are being imported from Canada as well. Most of
the MDMA in Japan originates in either the Netherlands or
China. Japanese officials regularly cooperate with their
international counterparts to prevent drugs from being
trafficked into Japan.


12. (U) DOMESTIC PROGRAMS (DEMAND REDUCTION): Most drug
treatment programs are small and are run by private
organizations, but the government also supports the
rehabilitation of addicts at prefectural (regional) centers.
There are a number of government-funded drug awareness
campaigns designed to inform the public about the dangers of
stimulant use, especially among junior and senior high school
students. The Ministry of Health, Labour, and Welfare, along
with prefectural governments and private organizations,
continues to administer national publicity campaigns and to
promote drug education programs at the community level.

--------------
IV. U.S. Policy Initiatives and Programs
--------------


13. (U) POLICY INITIATIVES: U.S. goals and objectives include:
-- Building on the successes of the last year by
strengthening law enforcement cooperation related to
controlled deliveries and drug-related money-laundering
investigations.
-- Encouraging more demand reduction programs.
-- Supporting increased use of existing anti-crime
legislation and advanced investigative tools against drug
traffickers.
-- Promoting greater involvement from government agencies
responsible for financial transaction oversight.


14. (U) THE ROAD AHEAD: DEA Tokyo will work closely with its
Japanese counterparts to offer support in conducting
investigations on international drug trafficking, money-
laundering, and other crimes. DEA will continue to pursue an
aggressive education and information-sharing program with
Japanese law enforcement agencies to foster knowledge of

TOKYO 00006569 003 OF 003


money laundering investigations, and their relationship to
narcotics trafficking and terrorist financing.

--------------

V. Data Tables
--------------

15. (U) Not Applicable.

--------------
VI. Chemical Control
--------------


16. (U) The Ministry of Health, Labour, and Welfare uses
licenses to control every step in the flow of trade in
precursor chemicals, including all the substances listed in
Table I and Table II of the 1988 UN Drug Convention. In
addition, strict control of distribution channels further
limits diversion into illicit activities. There are two
companies in Japan that refine ephedrine and pseudoephedrine,
chemicals used to treat nasal/breathing problems that are
also essential ingredients in methamphetamine. Government
regulations specify the type and security of storage
facilities as well as inventory, disposal, and accounting
requirements. On-site inspection is used to verify
compliance with these requirements.
DONOVAN