This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 09 THE HAGUE 003305 

SIPDIS 

DEPT FOR INL, INL/T, EUR/ERA, EUR/PGI, EUR/UBI 
DOJ FOR OIA, AFMLS, NDDS 
TREASURY FOR FINCIN 
USEU FOR WAGNER AND DOJ 
DEA HQS FOR OEE, OIE, AND OFFICE OF CHEMICAL DIVERSION 

E.O. 12958: N/A 
TAGS: SNAR PREL PGOV KCRM NL
SUBJECT: 2005 INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT 
(INCSR): THE NETHERLANDS - PART 1, DRUGS AND CHEMICAL 
DIVERSION CONTROL 

REF: (A) STATE 209561 

---------- 
¶I. Summary 
---------- 

¶1. The Netherlands continues to be a significant transit 
point for drugs entering Europe (especially cocaine), an 
important producer and exporter of synthetic drugs 
(particularly Ecstasy - MDMA), and a substantial consumer of 
most illicit drugs. The current Dutch center-right coalition 
has made measurable progress in implementing a five-year 
strategy (2002-2006) against production, trade and 
consumption of synthetic drugs. According to the public 
prosecutor's office, the number of Ecstasy tablets seized in 
the U.S. that could be linked to the Netherlands dropped to 
0.2 million in 2004 from 1.1 million in 2003 and 2.5 million 
in 2002. This number does not take into account the amount of 
Ecstasy seized in Canada that is destined for the U.S. 
Operational cooperation between U.S. and Dutch law 
enforcement agencies is excellent, despite some differences 
in approach and tactics. In July 2005, ONDCP Director John 
Walters and Dutch Health Minister Hans Hoogervorst signed an 
agreement to exchange scientific and demand reduction 
information. The Netherlands actively participates in DEA's 
El Paso Information Center (EPIC). The 100% controls at 
Schiphol airport on inbound flights from the Caribbean and 
some South American countries have resulted in a dramatic 
decline in the number of drug couriers. Dutch popular 
attitudes toward soft drugs remain tolerant to the point of 
indifference. The Government of the Netherlands (GONL) and 
the public view domestic drug use as a public health issue 
first and a law enforcement issue second. End summary. 

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

¶2. The central geographical position of the Netherlands, 
with its modern transportation and communications 
infrastructure, one of the world's busiest container port in 
Rotterdam and one of Europe's busiest airports, makes the 
country an attractive operational area for international drug 
traffickers and money launderers. Production of Ecstasy and 
marijuana is significant; there is also production of 
amphetamines and other synthetic drugs. The Netherlands also 
has a large (legal) chemical sector, making it an opportune 
location for criminals to obtain or produce precursor 
chemicals used to manufacture illicit drugs. 

------------------------------------------ 
III. Country actions against drugs in 2005 
------------------------------------------ 

Policy Initiatives 
-------------------- 

¶3. Major Dutch government policy initiatives in 2005 
include: 

¶4. The National Crime Squad (Nationale Recherche or NR), 
which officially started functioning in January 2004, had a 
very successful year in 2005. Not only did it make the 
largest cocaine seizure ever in the Netherlands, it also 
dismantled the largest Ecstasy laboratory ever found in the 
country (see below for more details). 

Cannabis 
-------- 

¶5. As announced in the 2004 Cannabis Letter, the Dutch 
Government has given top priority to discouraging drug 
tourism and cannabis cultivation, particularly in the 
southern border regions. In November 2005, Justice Minister 
Donner sent the Second Chamber an assessment of the 
government's cannabis policy, highlighting the most important 
developments: 

- Maastricht shortly is expected to begin the trial project 
with special coffeeshop passes for its local residents. If 
successful, the experiment, which will limit the purchase 
soft drugs in Dutch coffeeshops to Dutch nationals, will be 
expanded; 
- In October 2005, Justice Minister Donner proposed amending 
the Opium Act to make it easier for local governments to 
close down premises where drugs are sold illegally. 
Currently, closure of such drug premises is possible with a 
judge's order, but only if there is concrete evidence they 
are causing serious public nuisance; 

- The public prosecutor's office and the police in the 
southern provinces of Brabant and Limburg have started a 
pilot project targeting the criminal organizations behind 
illegal cannabis cultivation, rather than merely focusing on 
individual growers; 

- In anticipation of parliamentary ratification of the 
bilateral law enforcement cooperation treaties with Germany 
and Belgium, practical measures have been taken to reduce 
drug trafficking in border regions. Cross-border 
surveillance has been intensified and license numbers of drug 
tourists are being exchanged; 

- To implement the EU framework decision on illegal drug 
trafficking of November 2004, the Government currently is 
drafting a proposal raising the sentence for large-scale 
cannabis cultivation and illegal cannabis trafficking either 
or not in organized form from 4 to 6 years' imprisonment; 

- The 2004 National Drug Monitor, published by the Trimbos 
Addiction Institute in April 2005, showed that recent (within 
the last-month) cannabis use among young people aged 12-18 
dropped from 11% in 1996 to 9% in 2003. Lifetime prevalence 
(ever-used) of cannabis in this age group dropped from 22% to 
19% over the same period. In 2004, Trimbos began a 3-year 
mass- media publicity campaign, subsidized by the Health 
Ministry, to discourage cannabis use among young people; 

- The average THC content in Dutch-grown cannabis 
(Nederwiet) was 20% in 2003-2004, and appears to be 
stabilizing at between 17 and 20%. The State Institute for 
Health and Environment (RIVM) has been ordered to investigate 
acute health risks of cannabis with high THC levels. Results 
of this study are expected in March 2006. 

¶6. A July 2005 study estimated the total number of 
coffeeshops in the Netherlands at 737 at the end of 2004, 
down from 754 in 2002. Only 22% of the 483 Dutch 
municipalities allow coffeeshops within their cities - 70% do 
not allow any at all. Half of all coffeeshops are located in 
the five largest cities. On average, coffeeshops are 
controlled four times per year, and criteria for operating 
such shops usually are well observed. 

¶7. In a November 28, 2005 letter to the Second Chamber, 
Health Minister Hoogervorst stated that legal sales of 
medicinal cannabis by pharmacies have largely failed. He 
said the policy to allow medicinal sales in pharmacies could 
only be effective if an official cannabis-based medicine were 
registered. Hoogervorst intends to end the experiment if the 
pharmaceutical industry fails to develop such a medicine 
within one year. Since March 2003, doctors have been allowed 
to prescribe medicinal cannabis for their chronically ill 
patients. The Health Ministry's Bureau for Medicinal 
Cannabis buys the cannabis from two official growers, 
controls quality and organizes the distribution. 

Cocaine Trafficking 
------------------- 

¶8. In July 2005, the Justice Ministry expanded prosecutions 
of South American and Caribbean cocaine couriers at Schiphol 
airport. Previously, the government only prosecuted couriers 
carrying 3 kilos or more of cocaine; couriers carrying 
smaller quantities were sent home. Under the new policy, 
couriers carrying 1.5 or more kilos are prosecuted. 
Government officials expect to prosecute all couriers, 
regardless of quantity carried, by January 2006. This has 
become possible because of the dramatic decline in the number 
of couriers due to the stricter controls. During a Justice 
Ministry budget debate in November 2005, the Second Chamber 
questioned the high amount of money spent annually on the 
100% controls: 27 million euros by Justice, and 6.5 million 
euros each by the KMAR military police and Customs. In early 
2006, the Justice Ministry will publish an assessment of the 
Schiphol drug policy, including a long-term plan. 

¶9. In September 2005, Justice Minister Donner signed 
agreements with his Colombian and Venezuelan counterparts on 
intensified cooperation in combating cocaine trafficking in 
the regions. 

¶10. In June 2005, the Justice Ministry agreed to resume 
sharing the list of all blacklisted Schiphol couriers with 
DEA's El Paso Intelligence Center (EPIC) after a two-month 
hiatus due to Dutch concerns over privacy protections. To 
date, approximately 5,300 courier names have been provided to 
EPIC. 

¶11. In August 2005, the Rotterdam police seized 4,500 kilos 
of cocaine - the largest cocaine seizure ever in the 
Netherlands. The cocaine, hidden inside two large steel 
cable spools, was worth an estimated 273 million dollars. 
The investigation involved close cooperation with DEA offices 
in Spain, Belgium, and the Netherlands. Cooperation among 
Dutch, German and Spanish police led to the seizure of 1,650 
kilos of cocaine at the Port of Rotterdam in November. The 
cocaine, with an estimated street value of 60 million 
dollars, was hidden in tins of asparagus and red peppers. 

Ecstasy 
--------- 

¶12. In July 2005, Justice Minister Donner submitted to the 
Second Chamber an interim evaluation of the Government's 2002- 
2006 Ecstasy action plan. The report, which covers the 
period up to 2004, indicated positive effects, such as 
increased seizures, suspects, and completed investigations. 
(For more details, see para on cultivation/production.) 

¶13. On November 29, 2005, the National Crime Squad (NR) and 
the FIOD-ECD fiscal and economic investigation service 
dismantled the largest Ecstasy lab ever found in the 
Netherlands. The professional lab was found in Nederweert 
(southern Limburg province), and was estimated to have had a 
production capacity of 20 million Ecstasy tablets. The 
police also found more than 300 liters of PMK and a small 
quantity of MDMA powder and amphetamine. In addition, more 
than 50,000 liters of chemicals were discovered at a 
different location. Six people were arrested, all of them 
from Limburg province. The investigation, which began in May 
2005, was carried out in close cooperation with German and 
Belgian authorities. This was the first Ecstasy lab 
discovered in 2005; previously, only amphetamine laboratories 
had been found this year. 

Heroin Experiment 
----------------- 

¶14. In June 2005, Ministers Donner and Hoogervorst informed 
the Second Chamber that projects providing free heroin to 
hard-core drug addicts would be expanded to another 15 
municipalities, for which 7 million euros would be made 
available over the next few years. Amsterdam, Rotterdam, The 
Hague, Utrecht, Groningen and Heerlen already have such 
projects, which include a total of 300 addicts. In total, 
980 addicts could be treated with the extra money. 

Accomplishments 
--------------- 

¶15. The new National Crime Squad (NR) has proved very 
effective in drug investigations, and resulted in closer 
cooperation with the DEA. In July 2005, the national police 
(KLPD) assigned a liaison officer to China to work on joint 
precursor chemical investigations. In addition to working 
directly with the Chinese, the Netherlands is an active 
participant in the INCB/PRISM project's taskforce. 
Law Enforcement Efforts 
----------------------- 

¶16. Overall the Health Ministry coordinates drug policy, 
while the Ministry of Justice is responsible for law 
enforcement. Matters relating to local government and the 
police are the responsibility of the Ministry of Interior. At 
the municipal level, policy is coordinated in tripartite 
consultations among the mayor, the chief public prosecutor 
and the police. 

¶17. The Dutch Opium Act punishes possession, commercial 
distribution, production, import, and export of all illicit 
drugs. Drug use, however, is not an offense. The act 
distinguishes between hard drugs that have unacceptable 
risks (e.g., heroin, cocaine, Ecstasy), and soft drugs 
(cannabis products). Trafficking in hard drugs is 
prosecuted vigorously and dealers are subject to a prison 
sentence of up to 12 years. When trafficking takes place on 
an organized scale, the sentence is increased by one-third 
(up to 16 years). Sales of small amounts of cannabis 
products (under five grams) are tolerated (i.e., not 
prosecuted, even though technically illegal) in coffeeshops 
operating under regulated conditions (no minors on premises, 
no alcohol sales, no hard drug sales, no advertising, and not 
creating a public nuisance). 

¶18. The Dutch National Police (KLPD) and the National 
Prosecutors office continue to give high priority to 
combating the illegal drug trade. The new National Crime 
Squad (Nationale Recherche - NR), a branch of the KLPD, 
became operational on January 1, 2004; two of the NR's 
primary missions are investigating of smuggling and cross 
border trade in cocaine and heroin, and investigating the 
production and trade of synthetic drugs. As part of the 
bilateral Next Steps law enforcement negotiations, DEA has 
obtained increased access to the NR office in The Hague, 
which focuses on cocaine investigations, and is working 
toward a similar relationship with the NR office in Helmond, 
which focuses on synthetic drugs. In September 2004, DEA 
assigned an additional special agent to The Hague Country 
Office, increasing the office's manpower to six, the largest 
it has ever been. 

¶19. In April 2005, the Dutch participated in the 
International Drug Enforcement Conference (IDEC) in Santiago, 
Chile. This conference, involving approximately 50 nations, 
meets to share drug intelligence, identify joint targets and 
assist in coordinating international drug trafficking 
investigations. In July 2005, the KLPD assigned a liaison 
officer to Beijing, China to facilitate joint cooperation on 
precursor chemical investigations. In November 2005, the 
Dutch hosted the Synthetic Drug Enforcement Conference 
(SYNDEC II), which focused on ways to increase international 
cooperation on synthetic drug and precursor chemical 
investigations. 

¶20. All foreign law enforcement assistance requests continue 
to be sent to the DIN (International Network Service), a 
division of the NR. The DIN has assigned two liaison 
officers to assist DEA and other U.S. law enforcement 
agencies. Since the reorganization into the NR, the DIN has 
allowed DEA and other liaison officers to contact one of the 
five NR offices directly with requests. In addition, DEA has 
been allowed to contact regional police offices on a case-by- 
case basis. This policy has permitted better coordination 
during ongoing enforcement actions, such as controlled 
deliveries and undercover operations. Under Dutch law 
enforcement policy, prosecutors still control most aspects of 
an investigation. Dutch police officers must get prosecutor 
concurrence to share police-to-police information directly 
with foreign liaison officers. This can hamper the quick 
sharing of information, which could be used proactively in an 
ongoing investigation. However, the quick sharing of police- 
to-police information is improving as a result of the 
increased access for DEA agents with NR units. This improved 
information sharing led to the seizure of approximately 4,500 
kilograms of cocaine and the dismantling of a Colombian 
cocaine transportation cell operating in the Netherlands and 
Spain in September 2005. Dutch law enforcement has also 
become much more willing to undertake controlled delivery 
operations with DEA. In fiscal year 2004, the Dutch did not 
accept any requests from DEA for controlled delivery 
operations. In FY 2005, the Dutch and DEA conducted 10 
inbound controlled deliveries of cocaine. This trend is 
continuing with three controlled delivery operations 
attempted so far in FY 2006. Most of these controlled 
deliveries are small amounts of cocaine (less than five 
kilograms) contained in parcels being sent from South America 
or the Caribbean. 

¶21. The 100% controls on inbound flights from the Caribbean 
and some South American countries continue at Schiphol 
Airport. Currently couriers with more than 1.5 kilograms of 
cocaine are prosecuted. The Dutch Ministry of Justice 
anticipates prosecuting all cocaine couriers, regardless of 
quantity, at Schiphol beginning in January 2006. The 
manpower required to conduct these 100% controls remains a 
major monetary expense and logistical challenge for the 
authorities at Schiphol. The program negatively affects the 
number of flights targeted for outbound checks, and as a 
result, the number of outbound drug couriers going to the 
United States arrested at Schiphol remains low. 

Corruption 
---------- 

¶22. The Dutch government is committed to fighting national 
and international corruption. It does not encourage or 
facilitate illicit production or distribution of narcotic or 
psychotropic drugs or other controlled substances, or the 
laundering of proceeds from illegal drug transactions. No 
senior official of the Dutch government engages in, 
encourages or facilitates the illicit production or 
distribution of such drugs or substances, or the laundering 
of proceeds from illegal drug transactions. Press reports of 
low-level law enforcement corruption appear from time to time 
but the problem is not believed to be widespread or systemic. 
In November 2005, 140 officers of the special Schiphol 
CargoHarc drug team staged a preventive security control 
action of the airport's baggage basement, searching for drugs 
and other potential criminal activities. The action did not 
result in any arrests. 

Agreements and Treaties 
----------------------- 

¶23. The Netherlands is party to the 1988 UN Drug Convention, 
the 1971 UN Convention on Psychotropic Substances, the 1961 
Single Convention on Narcotic Drugs, and the 1972 Protocol 
amending the Single Convention. The Netherlands is a member 
of the UN Commission on Narcotics Drugs and the major donors 
group of the UNODC. The Netherlands is a leading member of 
the Dublin Group of countries coordinating drug-related 
assistance. The Netherlands ratified the UN Convention on 
Transnational Organized Crime in 2004, and ratified the 
protocols on trafficking in persons and migrant smuggling in 
¶2005. 

Cultivation and Production 
-------------------------- 

¶24. Although commercial (indoor) cultivation of hemp is 
banned, about 80 percent of the Dutch cannabis market is 
Dutch-grown marijuana (Nederwiet). A 2004 national police 
report of the Dutch drug market estimated the Netherlands has 
between 17,000-22,000 cannabis plantations producing about 
68,000-99,000 kilos of Nederwiet. In 2004, 2,261 hemp 
plantations were dismantled, up from 1,867 in 2003. Although 
the Dutch government has given top priority to the 
investigation and prosecution of large-scale commercial 
cultivation of Nederwiet, tolerated coffeeshops appear to 
create the demand for such cultivation. To end the 
controversial policy of allowing front-door cannabis sales 
in coffeeshops but banning back-door deliveries, a Second 
Chamber majority urged the Government in October 2005 to 
approve a trial program regulating cannabis cultivation. 
Proponents, including the Mayors of Amsterdam and Maastricht, 
argued that the measure would end large-scale home 
cultivation, in which organized crime plays an important 
role. Justice Minister Donner and Interior Minister Remkes 
strongly opposed the experiment on the grounds that it would 
violate international treaties to which the Netherlands is 
committed. 

¶25. The Netherlands remains one of the largest producers of 
synthetic drugs, although the National Crime Squad (NR) has 
noted a production shift to Eastern Europe. According to the 
NR, there also appears to be a shift from Ecstasy to 
amphetamine production. According to a July 2005 report by 
the National Crime Squad (NR), 197 Ecstasy suspects were 
arrested in 2004, down from 214 in 2003. The NR seized 
11,120 liters of chemical precursors compared to 11,453 
liters in 2003. The NR completed 60 criminal investigations 
in 2004 and 40 in 2003. The Fiscal and Economic 
Investigation Service (FIOD-ECD) completed 23 investigations 
in 2004 and 19 in 2003. The total number of Ecstasy tablets 
with an alleged Dutch connection confiscated by U.S. 
authorities continued to drop from almost 2.3 million tablets 
in 2002, and 1.1 million in 2003, to about 0.2 million in 
¶2004. The number of registered Ecstasy tablets seized in the 
Netherlands totaled 5.6 million in 2004, compared to 5.4 
million in 2003. 

¶26. According to the same NR report, 2004 drug seizures 
around the world that could be related to the Netherlands 
involved more than 10 million MDMA tablets (2003: 12.9 
million) and more than 1,000 kilos (2003: 870 kilos) of MDMA 
powder. MDMA (powder and paste) seizures in the Netherlands 
in 2004 dropped to 303 kilos from 435 kilos in 2003. The 
number of dismantled production sites in the Netherlands for 
synthetic drugs dropped to 29 in 2004 from 37 in 2003. Of 
the 29 production sites, 13 were for amphetamine and 11 for 
Ecstasy production, and 5 were meant for Ecstasy tableting. 

Drug Flow/Transit 
----------------- 

¶27. The Netherlands remains an important point of entry for 
drugs to Europe, especially cocaine. According to a November 
2003 report by the National Crime Squad, an estimated 40,000- 
50,000 kilos of cocaine are smuggled annually into the 
Netherlands, of which about 20,000 kilos enter via Schiphol 
and the remainder via seaports and road from Spain (Dutch 
cocaine use is estimated at 4,000-8,000 kilos annually). The 
Dutch government has stepped up border controls to combat the 
flow of drugs, including the successful Schiphol Action Plan. 
Cocaine seizures in the Netherlands dropped to 12,387 kilos 
in 2004, of which about 8,155 kilos were seized at Schiphol. 
The government has expanded the number of container scanners 
in the port of Rotterdam and at Schiphol airport. Controls 
of highways and international trains connecting the 
Netherlands to neighboring countries have also been 
intensified. 

Money Laundering 
---------------- 

¶28. The Netherlands participates in the FATF. Forty 
separate anti-money laundering measures recommended by FATF 
have been integrated in the financial sector. Additionally, 
legislation making money laundering a separate, stand-alone, 
offense became effective in 2002. (Septel) 

Asset Seizures 
-------------- 

¶29. The Dutch have signed the Strasbourg Convention and have 
drawn up national legislation to enable courts to confiscate 
the proceeds of drug-related crime. The U.S. and the 
Netherlands have an asset seizure agreement. 

Extradition and Mutual Legal Assistance Treaty 
--------------------------------------------- - 

¶30. The U.S. and the Netherlands have fully operational 
extradition and mutual legal assistance agreements (MLAT). 
Some defense attorneys, however, have argued that suspects 
who may be accused in the United States of terrorist offences 
should not be extradited because of the way they may be 
treated in the U.S. Courts have been receptive to this 
argument. 

Demand Reduction 
---------------- 

¶31. The Netherlands has a wide variety of demand and harm- 
reduction programs, reaching about 80 percent of the 
country's 26,000-30,000 opiate addicts. The number of opiate 
addicts is low compared to other EU countries (2.6 per 1,000 
inhabitants); the number has stabilized over the past few 
years; the average age has risen to 40; and the number of 
overdose deaths related to opiates has stabilized at between 
30 and 50 per year. Needle supply and exchange programs have 
kept the incidence of HIV infection among intravenous drug 
users relatively low. Of the addicts known to the addiction 
care organizations, 75 percent regularly use methadone. 

¶32. According to the 2004 National Drug Monitor, the out- 
patient treatment centers registered some 29,173 drug users 
seeking treatment for their addiction in 2003, compared to 
27,768 in 2002. The number of cannabis addicts seeking 
treatment rose to 4,485 in 2003 from 3,701 in 2002, but the 
number of opiate addicts seeking treatment dropped from 
16,043 in 2002 to 15,195 in 2003. Statistics from drug 
treatment services show a sharp increase in the number of 
people seeking help for cocaine addiction, from 6,103 in 2000 
to 9,216 in 2003. About 65 percent of addicts seeking help 
for cocaine problems are crack cocaine users. 

¶33. Drug use among students ages 12-18, 1999 and 2003 
(percent reporting life-time (ever) use and last-month use) 

Life-time use Last-month use 
------------- -------------- 
1999 2003 1999 2003 

Cannabis 20.0 19.0 9.0 9.0 
Cocaine 2.8 2.2 1.2 0.8 
Heroin 0.8 1.1 0.4 0.5 
Amphetamine 2.8 2.2 1.1 0.8 
Ecstasy 3.9 2.9 1.4 1.2 

(Source: National Drug Monitor 2004, Trimbos Institute 

Prevention 
---------- 

¶34. Drug prevention programs are organized through a network 
of local, regional and national institutions. Schools are 
targeted in efforts to discourage drug use, while national 
campaigns are conducted in the mass media to reach the 
broader public. The Netherlands requires school instruction 
on the dangers of alcohol and drugs as part of the health 
education curriculum. The Netherlands Institute of Mental 
Health and Addiction (the Trimbos Institute) has developed a 
project in the field of alcohol and drugs in the context of 
teaching healthy living in classrooms. About 75 percent of 
Dutch secondary schools participate in the project. In 2004, 
the Health Ministry and the Trimbos Institute launched a 
three-year cannabis information campaign warning young people 
in the 12-18 age group about the health risks. The 24-hour 
national Drug Info Line of the Trimbos Institute has become 
very popular. 

--------------------------- 
IV. U.S. Policy Initiatives 
--------------------------- 

Bilateral Cooperation 
--------------------- 
¶35. U.S. and Dutch law enforcement agencies maintained 
excellent operational cooperation, with principal attention 
given to countering the Netherlands' role as a key source 
country for MDMA/Ecstasy entering the U.S. The U.S. Embassy 
in The Hague has made the fight against the Ecstasy threat 
one of its highest priorities. Dutch law enforcement has 
dramatically improved its acceptance of controlled delivery 
operations with the DEA, but continues to resist use of 
criminal infiltrants in investigations of drug traffickers. 
They are also reluctant to admit the involvement of large, 
international drug organizations in the local drug trade and 
do not use their asset forfeiture rules often. The fourth 
bilateral law enforcement talks, which were held in 
Washington in April 2005, resulted in additional agreements 
to the Agreed Steps list of action to enhance law 
enforcement cooperation in fighting drug trafficking. 

¶36. The U.S. and the Netherlands cooperate closely on law 
enforcement activities throughout the Kingdom of the 
Netherlands. The U.S. is also working with the Kingdom to 
assist Aruba and the Netherlands Antilles in countering 
narcotics trafficking. The 10-year FOL agreement between the 
U.S. and the Kingdom for the establishment of forward 
operating locations on Aruba and Curacao became effective in 
October 2001. 

¶37. Since 1999, the Dutch Organization for Health Research 
and Development (ZonMw) has been working with NIDA on joint 
addiction research projects. 

The Road Ahead 
-------------- 

¶38. We expect U.S.-Dutch bilateral law enforcement 
cooperation to intensify in 2006. The bilateral Agreed 
Steps process will continue to promote closer cooperation in 
international investigations, including Ecstasy and money 
laundering cases. In particular, increased access for DEA 
agents to NR drug units is expected to result in enhanced 
police-to-police information sharing and coordination. The 
Dutch government's Ecstasy Action Plan is expected to result 
in further improvements in Dutch counter narcotics efforts. 
The Dutch synthetic drug unit, which now is part of the 
National Crime Squad, will continue to make concrete 
progress. The stationing of the Dutch liaison officer in 
China in July 2005 is expected to increase cooperation among 
the U.S., China and the Netherlands on precursor chemicals. 
We have also noticed improved and expedited handling of 
extradition requests. 

------------- 
¶V. Statistics 
------------- 

¶37. Drug Seizures 
2003 2004 
---- ---- 
Heroin (kilos) 417 1,244 
Cocaine (kilos) 17,560 12,387 
Ecstasy (tablets) 5,420,033 5,600,193 
Ecstasy (powder and paste)(kilos) 435 303 
Ecstasy production sites 37 29 
Amphetamine (kilos) 843 533 
Amphetamine (tablets) 14,000 10,355 
LSD (doses) - 52,000 
LSD (tablets) 1,642 - 
Methadone (tablets) 57,430 13,866 
Cannabis resin (kilos) 10,719 16,101 
Marijuana (kilos) 7,067 7,491 
Nederwiet (kilos) 1,179 2,163 
Hemp plants 1,111,855 1,127,174 
Dismantled hemp plantations 1,867 2,261 

(Source: KLPD National Police Force) 

Chemical Control 
---------------- 
¶38. Responses below are keyed to the questions in reftel. 

-- (a) The Netherlands is a party to the 1988 UN Drug 
Convention and 1990 European Union Regulations. Trade in 
precursor chemicals is governed by the 1995 Act to Prevent 
Abuse of Chemical Substances (WVMC). The law seeks to 
prevent the diversion of legal chemicals into the illegal 
sector. Violations of the law can lead to prison sentences 
(maximum of six years), fines (up to 50,000 Euros), or asset 
seizures. The Fiscal and Economic Information and 
Investigation Service (FIOD-ECD) oversees implementation of 
the law. 

The NR synthetic drug unit and the Public Prosecutor's Office 
have strengthened cooperation with countries playing an 
important role in Ecstasy production, in particular with 
countries exporting chemical precursors. The GONL signed an 
MOU with China concerning chemical precursor investigations. 

-- b) The Dutch continue to work closely with the U.S. on 
precursor chemical controls and investigations. This 
cooperation includes formal and informal agreements on the 
exchange of intelligence. The Netherlands is an active 
participant in the INCB/PRISM project's taskforce. 

-- (c) Yes, the Netherlands is a party to agreements on a 
method of maintaining records of transactions of an 
established list of precursor and essential chemicals. 

-- (d) The Netherlands established such procedures in 1994. 

-- (e) The Netherlands has efficient national chemical 
control legislation in place which imposes record keeping and 
reporting requirements for listed chemicals. 

-- (f) No, the Netherlands doesn't encourage illicit 
production of controlled substances or the laundering of 
proceeds from illegal drug transactions. 

-- (g) No. 

Blakeman