AUSTRIA: 2006-2007 INTERNATIONAL NARCOTICS CONTROL

UNCLAS VIENNA 003355

SIPDIS

SIPDIS

DEPT FOR INL, INL/AAE (J.LYLE) AND EUR/AGS (Y.SAINT-ANDRE)
DEA FOR OILS AND OFFICE OF DIVERSION CONTROL
DOJ FOR OIA, AFMLS, AND NDDS
TREASURY FOR FINCEN

E.O. 12958: N/A
TAGS: SNAR PREL PGOV KCRM AU
SUBJECT: AUSTRIA: 2006-2007 INTERNATIONAL NARCOTICS CONTROL
STRATEGY REPORT (INSCR) - PART 1

REF: STATE 155088


1. Per reftel, Post is submitting Part I of the 2006-2007
International Narcotics Control Strategy Report (INSCR) on
Drugs and Chemical Control. Post will provide updates as
they become available. Embassy POC for the INCSR Part I is
Economic-Political Officer Dayna R. Robison, office phone:
43-1-31339-2196 and email: RobisonDR(at sign)state.gov. This
text was also sent by email to the Department on November 17,

2006.


2. Post emailed INCSR Part II on Financial Crimes and Money
Laundering to the Department on November 2, 2006.

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Part I: Summary
--------------


3. Austria is a transit country for drug trafficking into
Western Europe due to its position along the Balkan and
other, major trans-European routes. Foreign criminal groups
from Turkey, the Western Balkans, Eastern Europe, West Africa
(Nigeria),and Latin America dominate organized narcotics
trafficking in Austria. Trafficking by Austrian citizens
remains insignificant. Austria is not a drug-producing
country. The authorities reported a slight increase in
indoor cannabis cultivation for personal use, but the amounts
are low by international comparison.


4. Drug use in Austria increased slightly, but remains below
the European Union average. Austrian health experts and
government authorities do not consider it to be a severe
health problem. Studies indicate that the average age of
Austrian drug users is decreasing. According to health and
law enforcement officials, abuse of drug substitution
medication (e.g. retarding morphines, methadone, and
buprenorphine) is increasing. The number of drug users in
Austria is stable. Authorities estimate that there are
between 15,000 to 20,000 drug users, or fewer than two
addicts per 1,000 inhabitants. The lifetime prevalence of
drug abuse by Austrian citizens, primarily of cannabis, also
remained stable at 20 to 25 percent.


5. International cooperation, particularly with U.S. law
enforcement authorities, continued to be excellent during
2006, and resulted in several significant domestic and
multinational seizures. From January through July 2006,
Austria held the Presidency of the European Union, and made
the fight against organized crime a central theme. The
Austrian Presidency hosted President Bush, U.S. Attorney
General Alberto Gonzales, and other senior U.S. law
enforcement officials for talks on fighting international
organized crime and corruption. In May 2006, Austria
convened a workshop of international experts to discuss
policing along the Balkan drug route. Austria also continued
efforts to intensify international police cooperation within
the "Salzburg Forum," a meeting of regional interior
ministers, and within the European Union's Central Asian
Border Security Initiative (CABSI).


6. In October 2006, Austria held national parliamentary
elections. As of mid-November 2006, Austria was still in the
process of forming the new government. The country's drug
policy experts, however, do not anticipate any major shifts
in the government's overall drug policies or in cooperation
with the U.S.


7. Austria is a party to the 1971 and 1988 UN Drug
Conventions.

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Part II: Status of Country
--------------


8. The drug situation in Austria did not change
significantly during 2006. As of October 2006, the number of
drug-related deaths*which typically fluctuates between 100
and 150 deaths per year*totaled 191.


9. The number of drug deaths from mixed intoxication
continues to rise. The most recent statistics for 2005 show

a 2.68 percent increase in the number of charges Austrian law
enforcement authorities have filed for violation of the
Austrian Narcotics Act, with a total of 25,892 offenses.
This figure includes 25,041 criminal offenses involving
narcotic drugs and 848 for psychotropic drugs, and three
other offenses. The number of individuals charged under the
Austrian Narcotics Act also rose 1.38 percent to 21,335
persons. The Austrian Ministry of Interior investigated 164
cases involving precursor chemicals in 2005, an increase of
36 cases compared to 2004.


10. Experts estimate that the number of conventional illicit
drug users remained stable in 2006 at 15,000 to 20,000, or
roughly 0.25 percent of the population. The number of users
of MDMA (ecstasy) remained largely stable in 2005. 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 most
often cited use of cannabis, with ecstasy and amphetamines in
second and third place. Among young adults (ages 19-29),
about 25 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 had experience
with synthetic drugs. Austria, as a member of the European
Monitoring Center for Drugs and Drug Addition, undertook a
study in 2006, which confirmed that problem drug use is
increasing among 15 to 24 year-olds. (Comment: Post
anticipates updating the above paragraph in late November or
early December 2006, when the new figures become available
from the Ministry of Health. End Comment.)

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Part III: Country Actions Against Drugs in 2006
-------------- --


11. Domestic Policy Initiatives. Austria continues its "no
tolerance" policy against drug traffickers, who face a
minimum sentence of ten years to a maximum sentence of life
in prison when convicted. It also continues its policy of
"therapy before punishment" for non-dealing drug offenders.
In mid-2006, Austria began drafting a series of amendments to
introduce a more rigid system of fines for drug-related
offenses in line with an EU framework decision to harmonize
counternarcotics policies across the European Union.
Following an EU Council decision on synthetic drugs (2C-I and
related substances),in 2006, Austria also passed
legislation, which is awaiting implementation, to bring its
laws into conformity with UN agreements on psychotropic
substances.


12. A 2005 amendment expanded police powers to mount
surveillance cameras in high-crime public areas. The amended
law provides for the establishment of a "protection zone"
around schools, pre-schools, and retirement communities, and
entitles police to ban persons suspected of drug dealing
within a protection zone from that area for up to 30 days.
Austrian authorities say the new law has been effective in
these areas. Critics argue that the law only shifted the
drug scene to non-surveilled areas. In 2005, following
intense public debate, the government improved quality
controls and took a more restrictive approach in substitution
treatment with retarding morphine therapy. A November 2006
decree by the Austrian Health Ministry is designed to further
tighten controls on dispensing substitution medications and
to improve training for general practioners and pharmacists,
who prescribe and dispense this treatment.


13. Regional and International Cooperation. During the
first half of 2006, Austria held the Presidency of the
European Union and hosted several high-profile events. In
May, Austria hosted over 60 heads of state for the EU-Latin
America Summit and led discussions on finding joint
strategies to fight drug trafficking. Fighting organized
crime in the Balkans and increasing regional police
cooperation were also major themes of the EU Presidency. In
May, over 50 nations and international organizations,
including the U.S., met in Vienna to sign the &Vienna
Declaration on Security Partnership,8 which included a

convention on police cooperation. In June, Austria convened
a three-day workshop of experts from Europe, the Western
Balkans, Russia, the United Nations Office of Drugs and Crime
(UNODC),and the U.S., including DEA,s Regional Director for
Europe. The participants discussed strategies for fighting
drug trafficking from Afghanistan and for policing along the
Balkan route. In October 2006, Austria hosted a long-running
meeting of drug trafficking experts from the EU, Central and
Eastern Europe, and the U.S. to discuss measures to increase
law enforcement cooperation.


14. Austria maintained its lead role within the EU,s
Central Asian Border Security Initiative (CABSI) and the VICA
(Vienna Initiative on Central Asia) project, which provide
funding, equipment, and technical expertise to strengthen
border security and reduce trafficking of illicit goods.
Austria continued to address drug trafficking and related
security issues through the &Salzburg Forum8*a recurring
meeting of regional Interior Ministers from Austria, the
Czech Republic, Slovakia, Poland, Hungary, and Italy.
Austria worked with Italy on a project within the UNODC to
reform the justice system in Afghanistan. Austria also
worked on another project with the EU in UNODC to establish
border control checkpoints along the Afghan-Iranian border.
Austria also participates in a UNODC 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 over 20 Austrian embassies
throughout Europe, Russia, and Ukraine, as well as in the
Mediterranean, Morocco, Syria, and Lebanon. (Comment. Post
is seeking to update information on the above-mentioned UNOCD
programs. End Comment.)


15. Law Enforcement Efforts and Accomplishments.
Comprehensive seizure statistics for 2006 are not yet
available. Statistics for 2005 show a marked increase in the
quantity of cocaine and heroin seized and a slight decrease
in confiscations of ecstasy pills and LSD dose units, or
"hits." Police made nearly the same number of confiscations
of amphetamines and methamphetamines in 2005, but the
quantities of both drugs seize during 2005 decreased.
According to government igures, Austian authorities seized
820 kilograms(kg) of cannabis products (-26.39% decrease
over2004),282 kg of heroin ( 20.79%),13 kg of raw opum,
245 kg of cocaine ( 224.50%),114,103 ecstas tablets
(-6.98%),and 2,108 LDS dose units (-5.6%). Police seized 9
kg of ampheamines (-65.3%) and 0.7 kg of methamphetamines
(-62.9%) and 27,104 pieces ( 28.3%)of pharmaceutical,
psychotropic substances.


16. As part of an international investigation in January
2005, police in Austria made a record seizure of 143 kg of
cocaine, which originated in Peru and traveled via the U.S.,
France, and Germany before transiting Austria. The seizure
resulted in five arrests and disrupted a European drug
trafficking ring. The authorities recorded two other large
seizures of 30 kg and 24 kg, respectively, of cocaine in

2005. Austrian police made three major heroin busts at
customs checkpoints and weigh stations in the country in
2005: 70 kg in February, 97 kg in July, and 68 kg in August.
Austrian authorities seized 30,571 ecstasy pills in January,
15,000 in March, and 10,050 in December, which the police
determined all originated from the Netherlands.


17. In 2005, the Austrian Ministry of Interior investigated
164 criminal cases involving precursor chemicals, an increase
of 36 cases over 2004, and seized 100 grams of Category I
precursors.


18. In 2006, average retail or &street prices8 of illicit
drugs remained basically unchanged from 2005, and were as
follows: cannabis resin/hashish for euro 7.50 or $9.50 per
gram; herbal cannabis/marijuana for euro 3.50 or $4.50 per
gram; cocaine for euro 65-90 or $82-114 per gram; brown
heroin for euro 45-70 or $57-89 per gram; white heroin for
euro 80-90 or $101-115 per gram; amphetamines for euro 7.50
or $9.50 per gram or euro 15-25 or $19-32 per tablet; ecstasy
(MDMA) euro 10-15 or $13-19 per tablet, and LSD euro 30-35 or
$38-44 per dose unit or "hit."


19. Corruption. Austria has several laws in place (e.g. the

Criminal Code, Criminal Procedures Code, Law on
Responsibility of Associations for Criminal Offenses),which
contain provisions on corruption. In 1999, Austria became a
party to the OECD anti-bribery convention and also abolished
the tax deductibility of bribes and gray market payments. A
2006 report on corruption by the OECD confirms this and
recommends that Austria further clarify its definition of a
foreign bribery offense to ease investigations by tax
authorities. 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. A November
2006 survey by the British research organization Transparency
International ranked Austria as the eleventh least corrupt
country out of 163 nations surveyed.


20. Agreements and Treaties. An extradition treaty and a
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 to the U.S. 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. In 2005, the U.S. and Austria signed
protocols to put into effect new provisions of the U.S.-EU
Extradition and Mutual Legal Assistance Agreements. 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 and its
protocol against trafficking in persons in 2004. (Comment:
Post is seeking to update donor figure above. End Comment.)


21. Cultivation. Production of illicit drugs in Austria was
marginal in 2005 and 2006. Experts noted a minor rise in the
private, indoor growth of cannabis, but the amounts are low
by international comparison. Austria recorded no domestic
cultivation of coca or opium.


22. Drug Flow/Transit. Austria is not a source country for
illicit drugs and illicit trafficking by Austrian nationals
is negligible. Foreign criminal groups primarily from
Turkey, the Western Balkans, Eastern Europe, West Africa
(Nigeria),and Latin America (Colombia) carry out organized
drug trafficking in Austria. Based on 2005 seizures,
counternarcotics officials note that traffickers continued to
rely on conventional means of transportation, such as
trucking, for drug smuggling. Drug traffickers are
increasingly using Central and East European airports,
including those in Austria.


23. Domestic Programs/Demand Reduction. Austrian authorities
and the public view drug addiction as a disease rather than a
crime. This is reflected in liberal drug abuse legislation
and in court decisions. Austria held national parliamentary
elections in October 2006. The new government will most
likely continue the fight against organized crime and drug
trafficking as a major policy goal. 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. According to
health officials, ongoing challenges in demand reduction are
the need for psychological care for drug victims and greater
attention to older victims and to immigrants.


24. Primary prevention 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 treatmnt and care policies. Austria has
syringe exchage 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 to work toward greater diversification in
substitution treatment for drug addiction (using, for
example, methadone, prolonged-action morphine, and
buprenorphine) continued. Although no official data is
available, both drug policy and treatment experts in Austria
note an increase in the abuse of substitution medications and
an increase in the availability of these medications on the
local black market. Public debate continues in Austria on
methods to further tighten controls on this medication and to
provide training to general practioners and pharmacists, who
prescribe or dispense this medication. (Comment: Post is
waiting for updated figures on HIV from the Ministry of
Health. End Comment.)


25. Austrian health officials are also looking for new
measures to increase secondary prevention awareness,
especially concerning re-integration of recovering addicts
into the labor market.

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


26. Bilateral Cooperation. Cooperation between Austrian and
U.S. authorities continued to be excellent in 2006. Although
Austria has no specific bilateral narcotics agreement in
place with the U.S., several bilateral efforts exemplified
this cooperation. These include continuing 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
continuing DEA support of BKA investigative efforts across
Europe and in the Western Balkans to combat the flow of
Afghan heroin. Austrian Interior Ministry officials
continued to consult the FBI, DEA, and Department of Homeland
Security to gain know-how on updating criminal investigation
structures and techniques and to share investigative
information. In June 2006, an FBI Special Agent Supervisor
shared his experiences on fighting drug trafficking along the
Balkan route with Austrian and EU law enforcement officials
during a workshop in Vienna. The U.S. Embassy also sponsors
speaking tours of U.S. counternarcotics and drug treatment
experts in Austria.


27. In May, the Austrian EU Presidency hosted U.S. Attorney

General Alberto Gonzales and Department of Homeland Security
Deputy Secretary Michael P. Jackson at a meeting of Justice
and Interior Ministers from the EU and Russia. In June,
Austria hosted President Bush, Secretary of State Condoleezza
Rice, and other senior U.S. officials for the U.S.-EU Summit.
Increasing cooperation in the fight against terrorism,
corruption, and organized crime, including drug trafficking,
were central themes of these meetings.


28. The Road Ahead. The U.S. will continue to support
Austrian efforts, both bilaterally and within the UN and the
OSCE, to create more effective tools for law enforcement.
This includes working closely with Austrian authorities
against drug trafficking rings in Austria and collaborating
with Austria to improve border controls and security efforts
in the Western Balkans and Central Asia. The U.S. will
continue to facilitate workshops or other meetings between
U.S. and Austrian police, drug policy and treatment experts,
and senior government officials. The U.S. will work closely
with Austria to implement U.S.-EU initiatives and to deepen
the level of law enforcement cooperation gained during the
Austria EU Presidency in the fight against drug trafficking
and other organized crime. Promoting a better understanding
of U.S. drug policy among Austrian officials and the public
remains a top priority.
MCCAW