NORTHERN EXPOSURE: COCAINE TRAFFICKING ON THE RISE

C O N F I D E N T I A L SANTIAGO 000665

SENSITIVE
SIPDIS

WHA/BSC
INL/LP FOR DHOOKER
LA PAZ FOR NAS/GLLEWELLYN

E.O. 12958: DECL: 07/14/2019
TAGS: PGOV SNAR KCRM CI
SUBJECT: NORTHERN EXPOSURE: COCAINE TRAFFICKING ON THE RISE
IN CHILE

REF: SANTIAGO 521

Classified By: CDA Carol Urban for reasons 1.4 b/d


1. (C) SUMMARY: Law enforcement contacts in northern Chile
report that cocaine trafficking from Bolivia to Chile has
increased in the past six to eight months -- a development
that some officials link to the departure of DEA agents from
Bolivia. Chilean police complain that they lack sufficient
resources to confront the problem, which is magnified by poor
interagency coordination and a complete distrust of Bolivian
counterparts. Chilean authorities recognize the threat posed
by chemical precursors, which are highly susceptible to
diversion for cocaine production in Bolivia. Chile's recent
decision to focus on combating small-scale drug dealers will
likely hamper efforts to disrupt major traffickers. END
SUMMARY.

INCREASED DRUG TRAFFICKING FROM BOLIVIA RAISES CONCERNS
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2. (C) During a recent trip to northern Chile, a region
characterized by rough terrain and porous borders, law
enforcement officials told Poloff that their number one
priority is drugs, particularly the threat from Bolivian
cocaine traffickers. Police, public prosecutors, and customs
officials in the northern cities of Iquique, Antofagasta, and
Calama reported that the drug situation in their regions has
deteriorated over the past six to eight months, with notable
increases in the frequency and quantity of smugglers
transiting through Chile from Bolivia. The assistant public
prosecutor in Calama, an isolated mining town approximately
30 miles from Bolivia, revealed that his office routinely
deals with seizures of 20 kgs of cocaine a week compared to
seizures of 60 kgs of cocaine a year when he first arrived in

2001. Investigative Police (PDI) contacts pointed to the
departure of DEA from Bolivia as a turning point that marked
the beginning of increased activity in northern Chile.


3. (SBU) Officials highlighted several trafficking trends,
including an increase in the number of individual traffickers
who swallow drugs and the continued use of small boats for
maritime trafficking along Chile's long coast. Police in all
three cities reported a direct connection between Chilean car
robberies and Bolivian drug trafficking. Vehicles, usually
trucks or 4x4 SUVs, are stolen in Chile, transported across
the porous border with Bolivia, and routinely exchanged for
6-8 kgs of cocaine. The cocaine is then smuggled back into
Chile for distribution or exported overseas. According to
Chilean officials, the Government of Bolivia regularly
declares amnesty for vehicles lacking proper paperwork, which
feeds demand for stolen vehicles.


4. (C) Contacts predicted that northern Chile will continue
to be an attractive transit point for drugs destined for
Santiago and overseas. Mauro Mercado, the chief of
Antofagasta's PDI anti-narcotics unit, reported that a
Bolivian informant told him "large, organized groups have
reorganized in Bolivia and it's very easy to smuggle, there
are no controls." Mercado confessed that he was especially
worried about the impending expansion of Antofagasta's
international airport. (NOTE: Antofagasta -- located on the
Pacific coast and a major hub for mining and shipping -- has
an international airport that will begin three weekly
international flights to La Paz, Bolivia in August 2009. END
NOTE.) He speculated that his unit would seize more than 500
kgs of cocaine in 2009 compared to 300 kgs seized in 2008,
but refused to guess what amount of cocaine successfully
transits his region.

LAW ENFORCEMENT EFFORTS FAIL TO KEEP PACE
--------------


5. (C) Chile has increased anti-narcotics efforts in the
north, but officials complain that they still lack the

resources needed to confront the problem. The PDI, in
particular, suffers from a severe shortage of officers and
equipment. In Iquique, home to a major free trade zone and a
large international port, the PDI anti-narcotics unit
consists of 23 officers, but they have requested 20
additional personnel to respond to increased demands.
Working out of dilapidated offices and using officers'
personal computers, the unit relies on telephone intercepts
for most of its investigations. The PDI anti-narcotics unit
in Calama has more than doubled in size since 2007 from seven
to 17, but the unit only has two vehicles and no official
phones -- officers must use personal cell phones to
communicate.


6. (C) The Carabineros, Chile's uniformed police force, is
better staffed and supplied, including the recent purchase of
a plane based in Iquique. Their anti-narcotics efforts are
focused on border enforcement at official crossings and known
drug trafficking routes within Chile. Chile's Customs
service prioritizes drug seizures during routine inspections
at ports and border crossings but does not conduct
investigations.


7. (C) Chile's law enforcement efforts are hampered by
institutional rivalries and a lack of information sharing
(septel). The PDI and Carabineros do not have any
relationship with Bolivian law enforcement agencies and they
repeatedly stated that Bolivian officials cannot be trusted.
In Calama, representatives from the PDI, Carabineros, and
Public Prosecutor's office told Poloff that the Ministry of
Interior recently instructed law enforcement agencies to
crack down on street dealers in a bid to enhance citizen
security. Officials claimed that they will be able to
increase operations against street dealers and continue
complex investigations, but they did not explain how this
would be accomplished given limited resources.

CHEMICAL PRECURSORS VIEWED AS NEW THREAT
--------------


8. (SBU) While officials agreed that Chile is primarily a
transit and destination country for Bolivian cocaine,
contacts in Iquique and Antofagasta are increasingly worried
about the threat of chemical precursors. Northern Chile is
home to large mining operations, and officials reported that
sulfuric acid is likely being diverted from Chile to Bolivia
for use in cocaine production. Resources to confront this
problem are especially limited, as Antofagasta is the only
city that Poloff visited with a trained PDI unit dedicated to
investigating chemical precursors. Erik Menay, the chief of
PDI's anti-narcotics unit in Iquique, has requested
additional personnel to form a chemical precursor group.


9. (SBU) Law enforcement officials in northern Chile have
very little interaction with counterparts at the National
Drug Control Council (CONACE),the organization charged with
regulating companies that deal with chemical precursors. The
PDI chemical precursor unit in Antofagasta reviews the list
of registered companies that CONACE maintains. However, the
PDI feels the list does not provide useful information in
initiating new investigations and could be improved. The
unit is looking to partner with the primary sulfuric acid
supply company in the area to use GPS tracking devices on
trucks to prevent diversions. The Public Prosecutor's office
in Iquique said it had investigated three or four diversion
cases but admitted a lack of expertise prevented them from
fully pursuing the cases.

COMMENT
--------------

10. (C) Law enforcement authorities face a difficult
challenge in northern Chile. Increased supply from Bolivia,
a harsh environment, limited resources, no relations with
Bolivian counterparts, and poor interagency coordination
combine to make successful investigations rare events. Given

already limited resources, Post thinks that the Ministry of
Interior's recent instructions to focus on street dealers
will further weaken Chile's ability to disrupt major drug
traffickers, despite law enforcement claims to the contrary.
Chilean authorities recognize the threat posed by chemical
precursors, but they lack the resources and expertise to
strengthen enforcement. As a result, Post asks for renewed
consideration of its action request for $25,000 in additional
INL funds (reftel) to support specialized chemical precursor
training.
URBAN