AUSTRALIA: 2007-2008 INTERNATIONAL NARCOTICS

UNCLAS CANBERRA 001610

SIPDIS


SIPDIS

DEPARTMENT FOR INL AND EAP/ANP

E.O. 12958: N/A
TAGS: SNAR AS
SUBJECT: AUSTRALIA: 2007-2008 INTERNATIONAL NARCOTICS
CONTROL STRATEGY REPORT (INCSR),PART I

REF: STATE 136782


1. SUMMARY
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Australia is a committed partner in international efforts to
combat illicit drugs. Domestically, Australian government
policies are designed to address fully both the law
enforcement needs and the demand reduction sides of the
equation. Australian law enforcement agencies work closely
with their U.S. counterparts in Australia and the United
States, and have a robust and growing law enforcement liaison
structure in numerous overseas posts where they also work
closely with U.S. counterparts.


2. STATUS OF COUNTRY
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Cannabis remains the most abused drug in Australia but law
enforcement and health officials continue to be concerned
about the increased use of crystal methamphetamine and
cocaine. The trend towards the use of crystal methamphetamine
('ice') is of particular concern to Australian law
enforcement given its destructive effect on users and the
public. Law enforcement agencies throughout Australia
continue to seize greater amounts of methamphetamine
precursor chemicals and have shut down sophisticated
clandestine laboratories with increased frequency. MDMA is
still very prevalent in the major cities throughout Australia
although a recent study indicates use may be falling. Large
shipments are seized entering Australia from Europe and Asia,
and law enforcement officials continue to encounter
sophisticated MDMA production laboratories in the Sydney and
Melbourne areas. Cocaine use appears to be increasing
throughout Australia. The number of cocaine seizures has
increased, with a majority of the seizures involving couriers
and smaller amounts, but there have also been large shipments
seized from Canada, Hong Kong and Chile. Cocaine use in
Australia remains the drug of choice for the affluent due to
the high price (US$277 (AUD$300)/gram to US$92-115,000
(AUD$100-125,000)/kilogram) and the unsteady supply. (Note:
Throughout this report, figures are in U.S. dollars,
calculated at an exchange rate of A$1 equals U.S.$0.92. End
note.) Its use has been increasing across all socio-economic
levels. Australian media are describing crystal
methamphetamine as the "new heroin," a reference to the
heroin abuse "epidemic" which swept through Australia in the
late 1990's and early 2000's. The heroin "epidemic" resulted
in a significant increase in heroin overdoses and deaths. A
variety of factors contributed to a subsequent decrease in
heroin availability and many heroin users began utilizing
other drugs. Of note, a recent annual drugs survey reported
this downward trend in heroin may not be continuing as many
abusers of crystal methamphetamine may be switching back to
heroin due to the government's high profile campaign against
crystal methamphetamine.



3. COUNTRY ACTIONS AGAINST DRUGS IN 2007
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Policy Initiatives: In an effort to address the increase in
the numbers and sophistication of clandestine laboratories,
changes in legislation have limited the availability of
pseudoephedrine. All pseudoephderine products are now stored
behind the pharmacy counters, and products with high
concentrations of pseudophederine also require a doctor's
prescription. In response to this legislation, many organized
crime groups have undertaken large scale imports of ephedrine
and pseudoephedrine products from locations throughout Asia,
and most recently Africa. Australian law enforcement
officials seize large illicit shipments of pseudoephedrine on
Qofficials seize large illicit shipments of pseudoephedrine on
a regular basis.

With the view that stable governments in the regions are less
likely to be utilized by drug trafficking groups in
establishing drug production facilities, the Australian
Government has strengthened the AFP's capacity to respond to
international crises, particularly within the region. The
AFP's International Deployment Group (IDG) has been increased
by about 400 personnel, taking the total to 1200. This has
been the largest single increase in AFP staff since the force
was established in 1979. The extra resources will allow the
IDG to establish a 150-strong Operational Response Group that
is ready to respond at short notice to emerging law and order
issues in the region and to undertake stabilization
operations. The AFP's international network currently has 86
officers located in 31 posts in 26 countries worldwide. Many
of these posts have close working relationships with area DEA
Country Offices.


Law enforcement efforts: Responsibility for counternarcotics
efforts is divided among the Federal Government, primarily
the Australian Federal Police (AFP),the Australian Customs
Service (ACS),the Australian Crime Commission (ACC),and the
Therapeutic Goods Administration (TGA),in addition to
state/territorial police services. It also has a large and
growing international deployment of AFP oveseas liaison
officers focusing on transnational crime, including
international drug trafficking. Australian law enforcement
has made it a priority to identify and dismantle clandestine
laboratories whose numbers appear to have stabilized after
several years of drastic increases. In the period of July
2006/2007, a total of 333 clandestine labs were seized in
Australia. For the period of July 2005/2006, there were 390
clandestine labs seized, and in 2004/2005, 381 clandestine
labs seized. Although a majority of the seized laboratories
are unsophisticated, small capacity operations, there has
been an increase in the number of sophisticated
methamphetamine/crystal methamphetamine "superlabs" seized
throughout the country. Law enforcement authorities continue
to report the seizure of large-scale active and inactive MDMA
labs in the country. For July 2006/2007, 17 MDMA labs were
seized, up from 7 MDMA labs seized during the July 2005/2006
period. During the 2005/2006 period, some of the MDMA
clandestine labs were 'superlabs' .

Corruption: The federal agencies rarely are targets for
allegations of corruption and misconduct. The Australian
Crime Commission (ACC),the Australian Federal Police (AFP),
the internal affairs sections of State Police departments,
and legislative-established commissions actively investigate
and pursue corruption or misconduct charges. Generally,
investigations involving public corruption are reported by
the media. As a matter of policy, the Australian government
does not encourage or facilitate the illicit production or
distribution of narcotic or psychotropic drugs or other
controlled substances, or the laundering of proceeds from
illegal drug transactions. Likewise, no senior official of
the federal government is known to engage in, encourage or
facilitate such illicit production, or to launder proceeds of
illegal drug transactions, to post's knowledge.

Agreements and treaties: Australia is a signatory to
international counter-drug treaties and conventions that
include the 1961 U.N. Single Convention (amended in 1972),
the 1971 U.N. Convention on Psychotropic Substances, the 1988
Convention against the Illicit Traffic in Narcotic Drugs and
Psychotropic Substances, and the U.N. Convention against
Transnational Organized Crime. Australia also is actively
involved in many international organizations that investigate
drug trafficking. Australia acts as co-chair in Asia-Pacific
Group on money laundering, is a member of the Financial
Action Task Force, INTERPOL, the Heads of Narcotics Law
Enforcement Association (HONLEA),the International Narcotics
Control Board, the South Pacific Chiefs of Police, the
International Drug Enforcement Conference (IDEC) and the
Customs Cooperation Council among others.

Cultivation/production: The licit cultivation and processing
of opium poppies in Australia is strictly confined to the
Australian state of Tasmania. Tasmania is considered one of
the world's most efficient producers of poppies with the
highest yield per hectare of any opiate producing country.
Qhighest yield per hectare of any opiate producing country.
With an annual average crop yield of approximately 2.5 tons
per hectare, Tasmania supplies around one half of the world's
legal medicinal opiate market. The Australian poppy industry
utilizes the Concentrated Poppy Straw process, which
processes the dry poppy plant material 'poppy straw' for use
in the production of codeine and thebaine. The Australian
Federal Government and the Tasmanian State Government share
responsibility for control of the poppy industry. During the
growing and harvesting season, crops are regularly monitored
by the Poppy Advisory and Control Board field officers and
any illegal activity is investigated by the Tasmania Police
Poppy Task Force. The export to the U.S. of Australia's
narcotic raw material (NRM) is regulated by the '80/20 rule'
which limits 80% of the NRM market to traditional suppliers
(India and Turkey) while the remaining 20% is shared by
non-traditional suppliers (Australia, France, Hungary, Poland
and Yugoslavia). There were approximately 1000 poppy growing
licenses granted for the 2006/2007 growing season in which
13,000 hectares were under poppy cultivation.

Domestically produced marijuana (cannabis) continues to be
Australia's most abused illicit drug. Cannabis cultivation
and distribution is not dominated by any group and appears to
be organized on an entrepreneurial basis. Sophisticated
hydroponic grow sites of various sizes have been seized
throughout the country. Use of hydroponic grow sites continue
to be the preferred method of the more advanced marijuana
trafficking organizations. There is still no evidence
indicating any large exportation of Australian produced
marijuana but there have been instances of small amounts of
Australian-produced hydroponic marijuana being transported to
Asian nations for use by ex-patriate communities in those
countries.

Drug flow/transit: The Embassy continues to receive
information indicating MDMA traffickers may be utilizing
Australia as a transit point for MDMA shipments to other
parts of the world. These reports remain unconfirmed but the
situation continues to be monitored closely by both the DEA
and Australian law enforcement organizations.

Domestic programs/Demand reduction: The availability of
treatment services for drug users remains an integral part of
Australia's National Drug Strategy. There is a wide range of
treatment options available throughout Australia, including
detoxification, therapeutic communities, residential
facilities, outpatient treatment, day programs, and self-help
groups. As part of the Tough on Drug Strategy launched in
1997, the Australian government has committed substantial
resources to reducing the demand for illicit drugs throughout
the country. This strategy, coupled with the activities of
state/territorial agencies and non-governmental
organizations, is aimed at reducing the demand for all types
of drugs throughout the country. In 2001, the New South Wales
government approved a heroin injection room in the Kings
Cross area of Sydney. The Commonwealth of Australia
government has opposed the operation of these injection rooms
and is pursuing alternative harm reduction methods. To date,
this safe injection room remains in operation.


4. U.S. Policy initiatives and programs
--------------
The United States undertakes a broad and vigorous program of
counternarcotics activities in Australia, enjoying close
working relationships with Australian counterparts at the
policy making and working levels. There is an active
collaboration in investigating disrupting and dismantling
international illicit drug trafficking organizations. The
United States and Australia cooperate under the terms of a
Memorandum of Understanding that outlines these objectives.
U.S. and Australian law enforcement agencies also have
agreements in place concerning the conduct of bilateral
investigations and the exchange of intelligence information
on narcotics traffickers. Both sides continue to pursue
closer relations, primarily in the area of information
sharing.

Chemical Control issues: The Serious Drug Offenses and Other
Measures Bill has strengthened the ability of law enforcement
and regulatory agencies to combat the diversion of chemicals
and the operation of clandestine laboratories. The
legislation increased uniformity of drug offenses throughout
the country, simplified prosecutions concerning precursor
chemical diversion, removed legal loopholes, enhanced
protection for children, and strengthened protection for
businesses involved in the legitimate sale of precursor
chemicals. This legislation forms an integral part of the
Australian government/s National Illicit Drugs Strategy.

MCCALLUM