PTQ7566 RELEASED IN FULL 4 UNCLASSIFIED PAGE 01 ORIGIN INL-01 STATE INFO INLB-01 DINT-00 INR-00 PA-00 MR-00 LOG-00 OASY-00 TEDE-00 OMB-01 G-00 154018 SOURCE 154018 PT01707 160118Z AID-00 SRPP-00 I0-00 PM-00 010R AMAD-01 EB-00 JUSE-00 P-00 ARA-01 OIGO-01 L-01 SP-00 CG-00 UTED-00 ADS-00 FMP-00 CTME-00 H-01 OIC-02 PMB-00 KODAKB 160002 DRAFTED BY INL LP EFCARROLL -- 07 30 97 PHONE 647-8984 APPROVED BY INL JEBECKER PLHALL EHEAPHY INL MWSRYAN DEA TDOLAN BWOLF RBARRETT ARA MEX JLEONARD ARA PROMERO TREASURY CGOLUMBIC DOJ DNDD HMATZ DOJ MLWA RREN FINCEN MMOSES ONDCP CGARLLAND DOD BMCDONALD CIA CNC JLITSINGER ---------- - ------- DAF72D 1601222 38 0 R 1601162 AUG 97 FM SECSTATE WASHDC TO AMEMBASSY MEXICO IMMEDIATE INFO CIA WASHDC 0000 US CUSTOMS SERVICE WASHDC DEA WASHDC 0000 SECDEF WASHDC 0000 FBI WASHDC 0000 NSC WASHDC 0000 DIRNSA FT GEORGE G MEADE MD TREASURY DEPT WASHDC 0000 USIA WASHDC 0000 UNCLASSIFIED UNCLASSIFIED PAGE 02 STATE 154018 1601182 UNCLAS STATE 154018 E O 12958 N A TAGS SNAR MX UNCLASSIFIED Date Printed 04 01 1998 DOC_NUMBER 97STATE154018 Page - 1 UNITED STATES DEPARTMENT OF STATE REVIEW AUTHORITY OSCAR J OLSON DATE CASE ID 20 JUL 1998 199703991 CHANNEL n a 81 SUBJECT 1996 COUNTERNARCOTICS OBJECTIVES FOR CERTIFICATION DEMARCHE TO MEXICO A LEONARD-BRAYSHAW TELCON 9 25 B AND C MEXICO 1987 REFS STATE 74565 COMBATTING INTERNATIONAL DRUG TRAFFICKING ORGANIZED 1 CRIME AND RELATED CORRUPTION ARE KEY ADMINISTRATION PRIORITIES THE NARCOTICS CERTIFICATION PROCESS REMAINS AN IMPORTANT MEANS OF FOCUSING OUR COUNTERNARCOTICS DISCUSSIONS WITH OTHER GOVERNMENTS AND STIMULATING WE ARE ACTION DESPITE INTERNATIONAL CRITICISM OF IT TRYING TO ADDRESS SUCH CRITICISM CONSTRUCTIVELY BY PROMOTING A GREATER SENSE OF MUTUAL OWNERSHIP OF COUNTERNARCOTICS INITIATIVES AND OBJECTIVES MUCH AS WE ARE DOING IN MEXICO THROUGH THE HIGH-LEVEL CONTACT GROUP ARA HELD A MEETING WITH AMBASSADORS FROM COUNTRIES IN THIS HEMISPHERE SUBJECT TO CERTIFICATION TO DISCUSS OUR NEW APPROACH A SEPARATE MEETING WAS HELD IN 1996 KEY USG WITH MEXICAN EMBASSY PERSONNEL CONCERNS AND EXPECTATIONS WERE PRESENTED TO MEXICO MORE FREQUENTLY AND AT MORE SENIOR LEVELS THAN FOR ANY OTHER COUNTRY SUBJECT TO U S CERTIFICATION AND WE HOPE TO BUILD ON THAT DIALOGUE IN THE COMING MONTHS 2 BECAUSE OF MEXICO'S UNIQUE SITUATION AND THE UNCLASSIFIED UNCLASSIFIED PAGE 03 STATE 154018 160118Z INTENSITY OF THE ONGOING DIALOGUE ON THESE ISSUES THE DEPARTMENT HAS BEEN CONSIDERING THE BEST APPROACH TO USE TO ADVISE THE GOVERNMENT OF MEXICO GOM CERTIFICATION OBJECTIVES BENCHMARKS OF THE THAT THE INTERAGENCY COMMUNITY HAS IDENTIFIED AS CRITICAL TO THE SUCCESS OF MEXICO'S COUNTER-DRUG PERFORMANCE IN 1997 AND OR TO EFFECTIVE COUNTER-DRUG COOPERATION WITH THE AFTER DISCUSSIONS WITHIN THE DEPARTMENT AND WITH U S CHARGE REFTELCON A DEPARTMENT HAS DECIDED TO PRESENT THE CERTIFICATION BENCHMARKS IN THE CONTEXT OF THE HIGH-LEVEL CONTACT GROUP RATHER THAN THROUGH A TRADITIONAL CERTIFICATION DEMARCHE SINCE THE NEXT MEETING HAS BEEN POSTPONED UNTIL OCTOBER HOWEVER THE PRESENTATION WILL BE MADE DURING THE AUGUST PREPCOM 3 ACTION REQUEST PLEASE REVIEW THE DRAFT CERTIFICATION PRESENTATION FOR TECHNICAL PRECISION AND UNCLASSIFIED Date Printed 04 01 1998 DO NUMER 97STATE154018 Page - 2 CHANNEL n a 8 CORRECT PRIORITIZATION AS WELL AS TO ENSURE THAT THE THE PRESENTATION IS OUTLINED IN GOALS ARE REALISTIC PARA 4 WITH PROPOSED TALKING POINTS IN PARR 5 4 CERTIFICATION POINTS - OUTLINE THE GOM WILL NEED TO MAKE MEASURABLE PROGRESS ON THE PRIORITY AREAS i AND AT LEAST SOME FORWARD MOVEMENT ON THE OTHERS IN ORDER TO OBTAIN FULL CERTIFICATION NEXT MARCH THE 1998 CERTIFICATION REVIEW WILL FOCUS PRINCIPALLY ON WHETHER MEXICO HAS EFFECTIVELY IMPLEMENTED THE A ORGANIZED CRIME BILL AND THE NEW MONEY LAUNDERING UNCLASSIFIED UNCLASSIFIED 1601182 154018 STATE PAGE 04 LAWS INTO CONCRETE ACTION AND CONTROLS TRANSLATING HAS MADE PROGRESS IN DEVELOPING AND ENACTING BROAD FORFEITURE REFORM LEGISLATION INCLUDING PROVISIONS FACILITATING INTERNATIONAL COOPERATION IN THIS AREA AS WELL AS ASSET SHARING B THE DEGREE TO WHICH IT HAS DISRUPTED AND OR DISMANTLED THE MAJOR NARCOTRAFFICKING ORGANIZATIONS SUCCESS IN BRINGING FUGITIVES TO JUSTICE C EXTRADITION SEQUENTIAL PROSECUTIONS IN THE U S AND MEXICO AND DOMESTIC PROSECUTION IN MEXICO D THE SERIOUSNESS WITH WHICH IT PURSUES CRIMINAL a a I i n JUSTICE SECTOR ANTI - CORRUPTION REFORM ADDRESSING INSTITUTIONAL AND PROCEDURAL WEAKNESSES WITHIN THE POLICE PROSECUTORIAL AND JUDICIAL-INSTITUTIONS CONTINUED IMPROVEMENTS IN BILATERAL COOPERATION E E G TO MAKE CONCRETE PROGRESS ON INVESTIGATION AND PROSECUTION OF LEADERS OF MAJOR DRUG CHEMICAL TRAFFICKING ORGANIZATIONS IN ADDITION THE U S WILL CONSIDER CAREFULLY OTHER FACTORS SUCH AS F QUANTIFIABLE NET REDUCTIONS IN THE FLOW OF ILLICIT DRUGS TO THE U S ERADICATION OR OTHER EFFORTS TO REDUCE CULTIVATION OF OPIUM POPPY AND UNCLASSIFIED Date Printed 04 01 1998 DOC_NUMBER Page - 3 97STATE154018 CHANNEL n a 81 MARIJUANA REDUCED DIVERSION OF PHARMACEUTICALS UNCLASSIFIED UNCLASSIFIED 154018 160118Z PAGE 05 STATE SEIZURES INTERDICTION LABORATORY DESTRUCTION THE LEVEL OF PROGRESS ON CHEMICAL DIVERSION G CONTROL H IMPROVEMENTS IN BORDER LAW ENFORCEMENT AND CROSS-BORDER COOPERATION 5 DRAFT PRESENTATION A NEW APPROACH TO CERTIFICATION -THE DRUG TRADE INTERNATIONAL ORGANIZED CRIME AND RELATED CORRUPTION ARE-AMONG THE MOST IMPORTANT CONCERNS THE CERTIFICATION OF THE CLINTON ADMINISTRATION PROCESS IS ONE OF THE KEY MECHHNISMS THROUGH WHICH THE ADMINISTRATION REVIEWS WITH THE U S CONGRESS OUR WE APPRECIATE THAT THIS IS AN ACCOMPLISHMENTS OFFENSIVE PROCESS FOR SOME BUT THIS REFLECTS THE UNAVOIDABLE HARD CHOICES WE MUST ALL FACE IN COMBATTING THE DRUG TRADE -AS MEXICO IS WELL AWARE THE 1997 NARCOTICS CERTIFICATION DECISIONS RECEIVED CONSIDERABLE ATTENTION THIS YEAR IN THE U S AS WELL AS ABROAD AND A NUMBER OF THE SPECIFIC DECISIONS WERE VERY CONTROVERSIAL CRITICS IN THE U S AS WELL AS ABROAD HAVE CRITICIZED THE PROCESS AS BEING UNDULY ONE-SIDED AND OFFENSIVE WE WANT TO DEMONSTRATE THAT THIS IS A SHARED PROBLEM UNCLASSIFIED UNCLASSIFIED PAGE 06 STATE 154018 160118Z BY ADDRESSING THESE CONCERNS CONSTRUCTIVELY THROUGH UNCLASSIFIED Date Printed 04 01 1998 DOC_ BER ' 97STATE154018 Page - 4 CHANNEL n a 81 INTENSIFIED BILATERAL DISCUSSIONS INCREASED TRANSPARENCY AND ARTICULATION OF CLEAR CERTIFICATION THE STANDARDS -- TO THE EXTENT POSSIBLE --STANDARDS WILt INCORPORATE THE GOALS AND OBJECTIVES OF THE COUNTRIES INVOLVED AND THOSE IDENTIFIED IN BILATERAL FORA -THE U S NATIONAL DRUG STRATEGY AND OTHER U S POLICY DOCUMENTS ON DRUG CONTROL UNDERSCORE U S EFFORTS TO CURB ITS OWN DRUG PROBLEMS INCLUDING CONSUMPTION WE WILL ENDEAVOR TO CONVEY MORE CLEARLY AND OPENLY OUR EFFORTS IN THAT REGARD AS WE HAVE DONE IN THE MEXICO US BI -NATIONAL DRUG THREAT ASSESSMENT HOWEVER WE ARE CONVINCED THAT NO NATION'S DOMESTIC -POLICY CAN SUCCEED WHILE DRUG CRIMINALS CONTINUE TO OPERATE WITH IMPUNITY AROUND THE WORLD AND THE CERTIFICATION PROCESS HAS HELPED TO FOCUS WORLD ATTENTION OUR ACTIONS AND STATEMENTS ARE FULLY CONSISTENT WITH THE GOALS OF THE 1988 UN CONVENTION AND ARE MADE PURSUANT TO DOMESTIC LEGISLATION ON CERTIFICATION WE ARE VERY INTERESTED IN EFFORTS TO IMPROVE REGIONAL COOPERATION AND REGIONAL ACTIVITIES TO SUPPORT THE GOALS OF THE 1988 UN DRUG CONVENTION SUCH ACTIVITIES AND INITIATIVES WHILE NOT NECESSARILY ADDRESSING CRITERIA FOR CERTIFICATION WILL BE GIVEN ALL DUE CONSIDERATION WHEN EVALUATING COOPERATION OUR AIM IN RAISING THE CERTIFICATION PROCESS WITH UNCLASSIFIED UNCLASSIFIED PAGE 07 STATE 154018 1601182 YOU NOW IS TO DISCUSS THE FACTORS THAT WILL BE TAKEN INTO CONSIDERATION BY THE U S IN THE UPCOMING CERTIFICATION PROCESS IN THE BROADER CONTEXT OF YOUR OWN NATIONAL ANTI-DRUG EFFORT THE FULL RANGE OF BILATERAL COOPERATION AND THE INTERNATIONAL COMMITMENTS ENCOMPASSED IN THE 1988 UN CONVENTION B MEXICO - BENCHMARKS FOR CERTIFICATION BASED ON THE OBJECTIVES IDENTIFIED DURING THE HIGH-LEVEL CONTACT GROUP THE SENIOR LAW ENFORCEMENT PLENARY AND THE BILATERAL WORKING GROUPS THE PRINCIPAL CRITERIA FOR MEXICO FOR THE UPCOMING CERTIFICATION REVIEW WILL BE UNCLASSIFIED ' Date Printed 04 01 1998 DOC_NUMBER 97STATE154018 Page - 5 CHANNEL n a 8 -- WHETHER MEXICO HAS EFFECTIVELY IMPLEMENTED THE ORGANIZED CRIME BILL AND THE NEW MONEY LAUNDERING CONTROLS TRANSLATING LAWS INTO CONCRETE ACTION -- THE DEGREE TO WHICH IT HAS DISRUPTED AND OR DISMANTLED THE MAJOR NARCOTRAFFICKING ORGANIZATIONS PROGRESS IN CRIMINAL JUSTICE SECTOR ANTI-CORRUPTION REFORM AND CONTINUED IMPROVEMENTS IN BILATERAL COOPERATION IN ADDITION THE U S WILL CONSIDER CAREFULLY OTHER FACTORS SUCH AS -- SUCCESS IN BRINGING FUGITIVES TO JUSTICE UNCLASSIFIED UNCLASSIFIED PAGE 08 EXTRADITION PROSECUTION 160118Z STATE 154018 PARALLEL PROSECUTIONS AND DOMESTIC QUANTIFIABLE REDUCTIONS IN THE FLOW OF ILLICIT DRUGS TO THE U S INCLUDING ERADICATION OR OTHER EFFORTS TO REDUCE CULTIVATION OF OPIUM POPPY AND MARIJUANA REDUCED DIVERSION OF PHARMACEUTICALS DRUG SEIZURES INTERDICTION AND CLANDESTINE LABORATORY DESTRUCTION THE LEVEL OF PROGRESS ON CHEMICAL DIVERSION CONTROL -- IMPROVEMENTS IN BORDER LAW ENFORCEMENT AND CROSS-BORDER COOPERATION i -- AS DISCUSSED AT THE HIGH-LEVEL CONTACT GROUP OVERSIGHT COMMITTEE MEETING IN MAY THE U S GOVERNMENT WILL WORK TO INCREASE PUBLIC AND CONGRESSIONAL AWARENESS OF THE MANY AREAS WHERE WE ARE COOPERATING WELL FOR EXAMPLE WE ARE OFF TO A GOOD START ON DEVELOPING THE JOINT STRATEGY UNDER THE AUSPICES OF THE HIGH LEVEL CONTACT GROUP WHICH WE NEED TO COMPLETE BY THE END OF THE YEAR AT THE SAME TIME WE CANNOT DOWNPLAY PROBLEMS OR OBSTACLES -I WOULD LIKE TO STRESS THAT THE CERTIFICATION STANDARD OF' FULL COOPERATION DOES NOT REQUIRE THAT OTHER GOVERNMENTS GRANT EACH AND EVERY U S REQUEST OR UNCLASSIFIED Date Printed 04 01 1998 DOC_NUMBER 97STATE154018 Page - 6 CHANNEL xa a 8f THAT THEY COMBAT CRIMINAL THREATS THE SAME WAY THE U S DOES BUT THERE ARE ISSUES IN THE US MEXICO RELATIONSHIP ON WHICH WE NEED TO MAKE PROGRESS SUCH AS ON BILATERAL INVESTIGATIONS AGAINST MAJOR DRUG AND CHEMICAL UNCLASSIFIED UNCLASSIFIED STATE PAGE 09 154018 160118Z TRAFFICKERS AND MONEY LAUNDERERS COMBATTING ORGANIZED CRIME -MEXICO MADE NOTABLE PROGRESS IN 1996 IN PASSING LEGISLATION TO ENHANCE ITS ABILITY TO COMBAT ORGANIZED CRIME THE CHALLENGE FOR 1997 IS TO'PUT THE LEGISLATION INTO ACTION THE CREATION OF VETTED AND TECHNICALLY-PROFICIENT -TEAMS TO COMBAT ORGANIZED CRIME SHOWS GREAT POTENTIAL FOR IMPACT AGAINST THE CARTELS AND FOR IMPROVING BILATERAL COOPERATION WE NEED TO WORK TOGETHER TO ENSURE THEIR FUTURE EFFECTIVENESS WE HOPE THAT BY YEAR'S END WE WILL HAVE MOVED BEYOND RECRUITING VETTING AND TRAINING AND ACTUALLY BE DEVELOPING SIGNIFICANT CASES AGAINST CRIMINAL ORGANIZATION --- THE U S IS PARTICULARLY CONCERNED ABOUT THE MANY DIFFICULTIES THAT HAVE BEEN ENCOUNTERED IN BUILDING AND SUSTAINING THE BILATERAL BORDER TASK FORCES WE LOOK TO THE MEXICAN GOVERNMENT TO ENSURE THE INTEGRITY AND CONTINUITY OF THESE UNITS WHILE U S LIAISON PERSONNEL HAVE BEEN PROVIDED APPROPRIATE OFFICIAL STATUS THEIR SECURITY REMAINS A SERIOUS CONCERN TO US -SPECIAL UNITS ARE CRITICAL -BUT WE ALSO NEED TO WORK TOGETHER TO FIND OTHER APPROACHES TO ATTACKING AND DISRUPTING THE MAJOR MEXICAN NARCOTICS TRAFFICKING ORGANIZATIONS THIS COULD INCLUDE SUCH ACTIONS AS UNCLASSIFIED UNCLASSIFIED UNCLASSIFIED Date Printed 04 01 1998 DOC_NVMBER 97STATE154018 Page - 7 CHANNEL n a 81 154018 1601182 STATE PAGE 10 MOBILIZING PUBLIC SENTIMENT AGAINST THEM USING REWARD OFFERS AND WITNESS PROTECTION TO BRING FORWARD WITNESSES AGAINST THE CARTEL LEADERS AND THEIR OPERATIONS BOTH CRIMINAL AND SO-CALLED LEGITIMATE BUSINESS FRONT COMPANIES CRIMINAL JUSTICE SECTOR REFORM AND TRAINING MEXICO'S BROAD-SWEEPING JUSTICE SECTOR REFORM EFFORT --IS AMBITIOUS AND CRITICALLY IMPORTANT THE U S IS PREPARED TO PROVIDE TRAINING AND TECHNICAL SUPPORT BUT CANNOT PURSUE SOME ASPECTS OF THIS PROGRAM UNTIL MEXICO SIGNS THE BILATERAL LETTER OF AGREEMENT LOA WHICH WE WE HAD HOPED TO CONCLUDE NEED TO OBLIGATE THE FUNDING THIS BY THE END OF JULY AND MUST CONCLUDE IT BY SEPTEMBER 30 OR THE FUNDING WILL BE LOST -- WHILE WE WELCOME GOM EFFORTS TO IDENTIFY AND REMOVE CORRUPT INDIVIDUALS INSTITUTIONAL CHANGES ARE NEEDED TO THE CREATION OF VETTED UNITS PREVENT IT FROM RECURRING IS A SOLID FIRST STEP IN ADDRESSING THE PROBLEM OF CORRUPTION MEXICO SHOULD EXPAND THE VETTING PROCESS TO INCLUDE A WIDER RANGE OF OFFICIALS IN SENSITIVE POSITIONS IN KEY INSTITUTIONS AS WELL AS EXAMINE WAYS TO FURTHER STRENGTHEN ITS SECURITY PRACTICES -MEXICO'S DECISION TO EXPAND THE ROLE OF THE MILITARY IN THE COUNTER-DRUG EFFORT HAS BROUGHT NEW ENERGY TO THAT EFFORT BUT IT RAISES NEW PROBLEMS FOR EFFECTIVE UNCLASSIFIED UNCLASSIFIED PAGE 11 STATE 154018 160118Z PROSECUTIONS AND CONCERNS ABOUT HUUUN RIGHTS AND DUE PROCESS TRAINING FOR MILITARY PERSONNEL PERFORMING POLICE ROLES WILL HELP TO ENSURE EFFECTIVE ADMINISTRATION OF JUSTICE AID MILITARY PERSONNEL IN ENHANCING ITS SUPPORT TO THE PGR ENSURING PROPER HANDLING OF EVIDENCE ETC AND TO ENSURE FULL PROTECTION FOR CIVIL AND HUAAN RIGHTS MILITARY PERSONNEL IN CRITICAL LAW ENFORCEMENT POSITIONS SHOULD UNDERGO AT LEAST BASIC ORIENTATION IN APPROPRIATE LEGAL METHODS AND TECHNIQUES AND PROCEDURES FOR CRIMINAL INVESTIGATIONS UNCLASSIFIED Date Printed 04 01 1998 DOC_NUMBER 97STATE154018 Page - 8 CHANNEL n a 81 MONEY LAUNDERING ----------------FROM THE PERSPECTIVE OF LAUNDERING OF DRUG PROCEEDS WE FACE THE SHARED PROBLEM OF THE MOVEMENT OF LARGE VOLUMES OF ILLICIT U S CURRENCY INTO MEXICO THROUGH ITS FINANCIAL SYSTEM AND THEN BACK INTO THE UNITED STATES VIA COURIERS AND ARMORED EXPRESS VEHICLES BANK DRAFTS DRAWN ON U S CORRESPONDENT ACCOUNTS OF MEXICAN BANKS AND WIRE TRANSFERS -- WE MUST WORK JOINTLY TO IDENTIFY THIS ILLICIT CURRENCY MOVEMENT SEIZE AND FORFEIT ITS PROCEEDS AND INSTRUMENTALITIES AND PROSECUTE THOSE WHO ENGAGE IN OR KNOWINGLY FACILITATE THIS ACT IVIT ACCORDINGLY WE WOULD LIKE TO SEE PROGRESS IN FOLLOWING AREAS TO ACCOMPLISH THESE MUTUAL GOALS -- AN INCREASE IN THE NUMBER OF INVESTIGATIONS UNCLASSIFIED UNCLASSIFIED PAGE 12 154018 STATE 160118Z UNDERTAKEN AND PROSECUTIONS INITIATED PURSUANT TO ARTICLES 400 BIS THE DEVELOPMENT OF A SPECIALIZED UNIT WITHIN THE PGR TO INVESTIGATE AND PROSECUTE MONEY LAUNDERING AND OTHER FINANCIAL CRIMES AND AN ENHANCEMENT OF COOPERATION BETWEEN THE MEXICAN TREASURY HACIENDA AND THE PGR ON INTEGRATING THE INVESTIGATIVE AND PROSECUTIVE ASPECTS OF A MONEY LAUNDERING ENFORCEMENT ACTION FULL IMPLEMENTATION OF THE ANTI-MONEY LAUNDERING REGULATORY REGIME PUBLISHED ON MARCH 10 1997 INCLUDING AN ANALYSIS OF THE NUMBER AND TYPES OF FINANCIAL INSTITUTIONS REPORTING SUSPICIOUS AND LARGE-VALUE TRANSACTIONS TO HACIENDA THE NUMBER OF SUCH REPORTS FILED AND ACTIONS TAKEN AS A RESULT OF THOSE REPORTS CONSIDERATION BY MEXICO OF ADDING A STRUCTURING OFFENSE TO THE PENAL CODE TO COVER THOSE OCCASIONS WHERE AN INDIVIDUAL DELIBERATELY BREAKS UP DEPOSITS TO AVOID THE REPORTING REQUIREMENTS UNCLASSIFIED Date Printed 04 01 1998 DOC NUMBER 97STATE154018 Page - 9 CHANNEL n a 81 PASSAGE AND IMPLEMENTATION BY MEXICO OF LAWS MANDATING OUTBOUND CURRENCY AND MONETARY INSTRUMENTS REPORT CMIR TYPE REPORTING FOR CASH AND MONETARY INSTRUMENTS INCLUDING ALL COURIERS AND ARMORED EXPRESS VEHICLES AND SEIZURE FORFEITURE AND PUNITIVE AUTHORITY WITH RESPECT TO UNREPORTED UNCLASSIFIED UNCLASSIFIED PAGE 13 STATE 154018 1601182 AMOUNTS WORK TOWARD THE CREATION AT LEAST INFORMATION TO COMPARED IN AN AUTOMATED THE U S CUSTOMS SERVICE OF ANALOGOUS CMIR FORMS OR BE RECORDED EXCHANGED AND DATABASE AS WE DO THROUGH NIPS EXPLORATION OF THE POSSIBILITY OF CONTEMPORANEOUS EXCHANGE OF CMIR INFORMATION BY CUSTOMS SERVICES AT THE BORDER EXPLORATION OF THE POSSIBILITY OF THE CREATION OF BILATERAL INVESTIGATIVE TASK FORCES TO 1 IDENTIFY AND ADDRESS THE MOVEMENT OF LARGE VOLUMES OF U S CURRENCY FROM MEXICO BACK INTO THE UNITED STATES BY COURIERS AND ARMORED EXPRESS VEHICLES AND 2 TO ADDRESS TEH USE OF'U S CORRESPONDENT ACCOUNTS OF MEXICAN FINANCIAL INSTITUTIONS TO REPATRIATE ILLICIT DRUG PROCEEDS INTO THE U S FINANCIAL SYSTEM --- ALTHOUGH THE ORGANIZED CRIME BILL CONTAINS FORFEITURE AS A PENALTY FOR THAT OFFENSE MEXICO SHOULD REVIEW AND CONSOLIDATE ITS ASSET FORFEITURE LAWS SO THAT FORFEITURE OF PROCEEDS AND INSTRUMENTALITIES WILL BE A SANCTION CLEARLY AND ROUTINELY APPLIED TO ALL MAJOR OFFENSES INCLUDING DRUG TRAFFICKING AND MONEY LAUNDERING EVEN IN CASES WHERE THE OFFENDER MAY HAVE DIED' OR ABSCONDED BEFORE FORFEITURE COULD BE ACHIEVED THROUGH A CRIMINAL PROCEEDING UNCLASSIFIED UNCLASSIFIED Date Printed 04101 1998 DOC_NUMBER 97STATE154018 Page - 10 CHANNEL n a 81 UNCLASSIFIED PAGE 14 154018 160118Z STATE WE ALSO ENCOURAGE MEXICO TO ENACT AS PART OF SUCH -LEGISLATIVE REVISIONS MEASURES THAT WOULD PROVIDE FOR INTERNATIONAL COOPERATION AS ENVISIONED IN THE U S -MEXICO MUTUAL LEGAL ASSISTANCE TREATY MLAT AND ARTICLE V OF THE 1988 UNITED NATIONS VIENNA SUCH LAWS SHOULD ALSO PROVIDE FOR CONVENTION RECIPROCAL ASSET SHARING WITH COOPERATING FOREIGN JURISDICTIONS CHEMICAL CONTROL ---------------SINCE METHAMPHETAMINE ABUSE HAS BECOME WIDESPREAD IN -THE U S YOUR GOVERNMENT'S EFFORTS TO ESTABLISH CONTROLS ON THE PRECURSOR CHEMICALS REQUIRED TO PRODUCE IT ARE GREATLY APPRECIATED THESE INCLUDE MEASURES TO LIMIT THE NUMBER OF AUTHORIZED PORTS OF ENTRY FOR SUCH CHEMICALS BILATERAL CHEMICAL CONTROL AND LABORATORY -INVESTIGATIVE TRAINING HAS BEEN VERY SUCCESSFUL AND COOPERATION ON BILATERAL CASE INVESTIGATIONS HAS IMPROVED MARKEDLY WE HOPE TO SEE THIS POSITIVE TREND CONTINUE AND BEGIN TO YIELD EVEN MORE SOLID RESULTS IN THE COMING MONTHS -THERE IS AN ADDITIONAL PROBLEM HOWEVER CONTROLLING THE DIVERSION OF THE ESSENTIAL OF CHEMICALS SUCH AS ACETONE AND SULFURIC ACID USED TO MANUFACTURE COCAINE AND HEROIN AS REQUIRED BY THE 1988 UN CONVENTION TABLE II WE FULLY RECOGNIZE THAT THIS IS UNCLASSIFIED UNCLASSIFIED PAGE 15 STATE 154018 1601182 A MORE DIFFICULT CHALLENGE THAN CONTROLLING THE RELATIVELY SMALL NUMBER OF PRECURSOR CHEMICALS BUT IT IS ONE THAT MEXICO NEEDS TO ADDRESS THIS IS SOMETHING I BELIEVE THE U S CAN HELP YOU IN DEVELOPING PERHAPS VIA THE BILATERAL WORKING GROUP WE LOOK FORWARD TO SWIFT MOVEMENT ON LEGISLATION TO EXPAND THE MEXICAN CONTROL REGIME TO INCLUDE THESE IMPORTANT CHEMICALS AS OTHER CHEMICAL MANUFACTURING COUNTRIES HAVE UNCLASSIFIED Date Primed 04 01 1998 DOC NIIMSER 97STATE154018 Page - 11 CHANNEL n a 81 IMPOSED EXPORT CONTROLS ON THESE ESSENTIAL CHEMICALS SOUTH AMERICAN DRUG PRODUCERS HAVE INCREASINGLY LOOKED TO MEXICO TO PROCURE CHEMICALS THIS RAISES THE PROSPECT OF MEXICO BECOMING A PROCESSING POINT FOR COCAINE -- AT LEAST ONE COCAINE LAB WAS FOUND IN MEXICO LAST YEAR -- FINALLY WE URGE THE GOVERNMENT OF MEXICO TO GIVE SERIOUS CONSIDERATION TO ESTABLISHING A CENTRALIZED UNIT COMBINING REGULATORY AND ENFORCEMENT FUNCTIONS EXPERTISE TO SERVE AS A COMMAND AND CONTROL CENTER FOR CHEMICALS WE HAVE TABLED A CONCEPT PAPER IN THIS REGARD THROUGH THE BILATERAL CHEMICAL CONTROL WORKING GROUP BUT YOUR GOVERNMENT IS ULTIMATELY BEST POSITIONED TO DETERMINE HOW SUCH A UNIT MIGHT BE CONFIGURED THE IMPORTANT ASPECT IS THAT REGULATORY INVESTIGATIVE AND ENFORCEMENT PERSONNEL WORK TOGETHER WE TRUST THAT THE RECENT VISIT BY MEXICAN OFFICIALS TO SEE THE ANALOGOUS CENTRALIZED UNIT IN THE U S PROVIDED SOME IDEAS -MOREOVER WE REMAIN CONCERNED ABOUT THE UNCONTROLLED SALE OR FRAUDULENT PRESCRIPTION OF DANGEROUS PHARMACEUTICALS SUCH AS FLUNITRAZEPAM BRAND NAME UNCLASSIFIED UNCLASSIFIED STATE PAGE 16 FLROHYPNOLLF 154018 1601182 AND ANABOLIC STEROIDS TO INDIVIDUALS WHO CLEARLY INTEND TO SMUGGLE THEM INTO THE US THIS IS WELL-ARTICULATED IN THE THREAT ASSESSMENT AND WE HOPE TO DEVELOP A PLAN FOR CONFRONTING THIS SITUATION TOGETHER PREFERABLY UNDER THE EXPERT DIRECTION OF THE BILATERAL CHEMICAL CONTROL WORKING GROUP INTERDICTION -- WHILE MEXICO AND THE U S HAVE AGREED THAT MARITIME DRUG TRAFFICKING CONSTITUTES ONE OF THE MOST SERIOUS THREATS FACING OUR NATIONS AND THE HEMISPHERE WE DO NOT YET HAVE A JOINT PLAN OF ACTION TO ADDRESS THIS THREAT WE MISSED A VALUABLE OPPORTUNITY TO ADVANCE COOPERATION IN THIS AREA BY NOT CONDUCTING THE LAST PROPOSED ROUND OF COINCIDENTAL MARITIME OPERATIONS THIS NEEDS TO BE ADDRESSED IN 1997 AND INTEGRATED INTO OUR OVERALL APPROACH TO INTERDICTING DRUG SHIPMENTS THESE MATTERS NEED TO BE ADDRESSED IN OUR STRATEGY TO COMBAT NARCOTICS BEING DEVELOPED UNDER THE HIGH LEVEL CONTACT GROUP UNCLASSIFIED Date Printed 04 01 1998 DOC_NUMBER 97STATE154018 Page - 12 CHANNEL n a 81 WE VERY MUCH APPRECIATE THE RECENT COMMITMENTS BY MEXICO TO INCREASED FLEXIBILITY IN OBTAINING LANDING OVERFLIGHT PORT VISIT REFUELING AUTHORIZATION IN MEXICO AND LOOK FORWARD TO ADVANCING COOPERATION AND COORDINATION AS WE IMPLEMENT THESE STREAMLINED PROCEDURES THIS WILL ASSIST THE USG IN IMPROVING ITS INTELLIGENCE SUPPORT TO MEXICOI S INTERDICTION PROGRAM WHILE MEXICO AND OTHER COUNTRIES RESPONDED QUICKLY UNCLASSIFIED UNCLASSIFIED PAGE 17 STATE 154018 160118Z TO THE THREAT OF TRAFFICKER USE OF FAST-MOVING CARGO JETS THIS PHENOMENON COULD RECUR AND WE HOPE THAT MEXICO WILL BE PREPARED TO DETECT AND INTERCEPT SUCH INCURSIONS SUCH AS THROUGH THE EXPANSION OF YOUR NATIONAL RADAR SYSTEM TO COVER THE KEY APPROACHES FUGITIVES MUTUAL LEGAL ASSISTANCE ---------------------------- - ---- --- WE BELIEVE THAT SIGNIFICANT PROGRESS WAS MADE IN 1996 ON THE RETURN OF FUGITIVES AND PREVENTING CRIMINALS FROM HIDING BEHIND NATIONALITY TO EVADE PROSECUTION THERE IS HOWEVER ROOM FOR FURTHER IMPROVEMENT SUCH AS IN PRIORITIZING PENDING CASES AND IN EXTRADITING MEXICAN CITIZEN DRUG FUGITIVES WE WILL CONTINUE TO SEEK THE EXCLUSION OF MARIO RUIZ -MASSIEU FROM THE U S WE ARE PLEASED THAT OUR JOINT EFFORTS RESULTED IN THE CONFISCATION OF NINE MILLION DOLLARS OF HIS ASSETS BY A FEDERAL COURT IN HOUSTON WE HOPE YOU WILL PROVIDE THE INFORMATION WE REQUESTEDPREVIOUSLY FOR USE IN MAKING A DECISION ON THE EQUITABLE SHARING OF'THOSE ASSETS AMONG GOVERNMENTS AND AGENCIES INVOLVED IN THE CASE -WE APPRECIATE THE INCREASING USE OF DEPORTATIONS TO RETURN U S CITIZEN CRIMINAL DEFENDANTS FROM MEXICO AND WE URGE YOUR GOVERNMENT TO CONTINUE TO USE WHENEVER POSSIBLE THIS SPEEDY AND DIRECT METHOD TO REDUCE THE BACKLOG OF PENDING CASES WE UNDERSTAND THE ROLE OF THE AMPARO - A CONSTITUTIONAL PROTECTIVE ORDER --- IN THE UNCLASSIFIED UNCLASSIFIED Date Printed 04 01 1998 D0C NUMBER 97STATE154018 Page - 13 L CHANNEL n a 81 UNCLASSIFIED PAGE 18 STATE 154018 1601182 MEXICAN LEGAL SYSTEM HOWEVER WE URGE YOUR GOVERNMENT TO VIGOROUSLY CONTEST THE FRIVOLOUS AND DILATORY TACTICS USED BY SOME CRIMINALS TO AVOID DEPORTATION WE STRONGLY URGE THE GOM TO CONTINUE TO GIVE SERIOUS -CONSIDERATION TO THE USE OF THE EXCEPTIONAL CIRCUMSTANCES STANDARD IN ORDER TO RETURN TO THE U S PERSONS ACCUSED OF HEINOUS CRIMES ESPECIALLY NARCOTRAFFICKERS WE ALSO NEED TO REACH AGREEMENT ON THE PROPOSED PROTOCOL FOR TEMPORARY RETURN TO OUR EXTRADITION TREATY PROVIDING FOR SEQUENTIAL TRIALS ERADICATION AND ALTERNATIVE DEVELOPMENT WHILE MEXICO HAS INVESTED MASSIVE HUMAN AND MATERIAL -RESOURCES IN A NATIONWIDE ERADICATION CAMPAIGN AND HAS MADE STRIDES IN REDUCING NET PRODUCTION GROWERS ARE UNDERMINING THIS THROUGH INCREASED CULTIVATION HUGE AMOUNTS OF MEXICAN-PRODUCED HEROIN AND MARIJUANA CONTINUE TO ARRIVE IN THE U S -- WITH STRATEGIC PLANNING BETTER TACTICAL DEPLOYMENT INTELLIGENCE-DRIVEN OF AIR ASSETS AND PERSONNEL USE OF MODERN TOOLS AND TECHNIQUES AND WITH A GREATER EFFORT TO ENGAGE COMMUNITIES IN DRUG-GROWING REGIONS THROUGH COMMUNITY MOBILIZATION AND SUSTAINABLE ALTERNATIVE DEVELOPMENT PROGRAMS THE SAME LEVEL OF RESOURCES COULD HAVE A SIGNIFICANTLY-GREATER IMPACT UNCLASSIFIED UNCLASSIFIED PAGE 19 CONCLUSION -- STATE 154018 1601182 THE U S GOVERNMENT FULLY APPRECIATES HOW SENSITIVE THIS ISSUE IS IN MEXICO BUT BELIEVES THAT IT-IS CRITICAL TO ESTABLISH A CLEAR MUTUAL UNDERSTANDING ABOUT THE PROCESS AND THE OBJECTIVES I VERY MUCH UNCLASSIFIED Date Printed 04 01 1998 DOC_NUMBER 97STATE154018 Page - 14 CHANNEL n a 81 APPRECIATE YOUR PATIENT ATTENTION THROUGH THIS LONG PRESENTATION AND HOPE THAT IT HAS ADDRESSED AT LEAST SOME OF YOUR QUESTIONS AND CONCERNS ABOUT THE PROCESS ALBRIGHT UNCLASSIFIED NNNN Current Handling Restrictions n a Current Classification UNCLASSIFIED UNCLASSIFIED Date Printed 04 01 1998 DOC_NUMBER 97STATE154018 Page - 15 CHANNEL 'n a 81