The North Korean government continues to sanction narcotics trafficking, according to the State Department's International Narcotics Control Strategy Report (INCSR) for 2003.

"... [N]umerous drug smuggling incidents linked to North Korea over the past several decades, reflect official involvement in the trafficking of illicit narcotics for profit, and make it highly likely, but not certain, that P'yongyang is trading narcotic drugs for profit as state policy," the report says.

North Korea is one of 195 countries reviewed this year in the annual report to Congress. In accordance with the Foreign Assistance Act, the INCSR describes the efforts of key countries to attack all aspects of the international drug trade, from drug and chemical control activities to money laundering and financial crimes, and provides the factual basis for the Presidential narcotics certification determinations for major drug-producing and/or drug-transit countries. If a country does not receive certification, it will lose most of its U.S. financial assistance, and the United States will be required to vote against funding by six multilateral development banks to that country.

The report for 2003 is available in full at:

http://www.state.gov/g/inl/rls/nrcrpt/2003/index.htm

Burma

Burma is the world's second largest producer of illicit opium and the second largest cultivator of opium poppy. The gap between Burma and the number one producer of illicit opium and number one cultivator of poppy, Afghanistan, increased considerably in 2003. Burma remains the primary source of amphetamine-type stimulants (ATS) in Asia, producing hundreds of millions of tablets annually. Although still a major producer of illicit opium, Burma's overall production in 2003 declined substantially for the seventh straight year. According to the joint U.S./Burma opium yield survey, opium production in Burma totaled no more than 484 metric tons in 2003, down more than 23 percent from a year earlier, and a fraction of the 2,560 metric tons produced in Burma in 1996. Burma's opium is grown predominantly in Shan State, in areas controlled by former insurgent groups. Since the mid-1990s, however, the government has elicited "opium-free" pledges from each cease-fire group and, as these pledges have come due, has stepped up law enforcement activities in areas controlled by these groups. The ethnic Wa group in northeastern Shan State has pledged to end opium production and trafficking at the end of the 2005 poppy harvest, but the government has been unable to curb the Wa's current cultivation and production activities. Wa cultivators now account for approximately 52 percent of Burma's total poppy crop. Major Wa traffickers continue to operate with apparent impunity, and United Wa State Army (UWSA) involvement in methamphetamine production and trafficking remains a serious concern. During the 2003 drug certification process, the USG determined that Burma had "failed demonstrably" to meet its international counternarcotics obligations.

Over the past several years, the Burmese government has extended significantly its counternarcotics cooperation with other countries. In 2001, it signed counternarcotics Memoranda of Understanding (MOUs) with both China and Thailand, and has joined with China in annual joint operations in the northern and eastern Shan State, which resulted in the destruction of several major drug trafficking rings, including a group that the Chinese called one of the largest "armed drug smuggling groups in the Golden Triangle area." Cooperation with Thailand increased considerably in 2003 as the Thai government pursued an aggressive domestic "drug-free" policy. The Thai Prime Minister and other cabinet-level officials visited Burma in 2003 to discuss counternarcotics cooperation with senior leaders of the Burmese military government. Burma is a party to the 1961 UN Single Convention, the 1971 UN Convention on Psychotropic Substances, and the 1988 UN Drug Convention.

Cambodia

The number of drug-related investigations, arrests and seizures in Cambodia increased in 2003. However, it is unclear whether this reflects increased effectiveness of law enforcement or simply an escalation in drug activity. The government is concerned at the increasing use of amphetamine-type stimulants (ATS) among middle-class youth. The government's principal counternarcotics body, the National Authority for Combating Drugs (NACD), cooperates closely with DEA, regional counterparts, and the United Nations Office on Drugs and Crime (UNODC). Cambodia is not a party to any of the major UN drug conventions but is studying all of them preparatory to becoming a party.

China

The People's Republic of China (PRC) remains a major drug-transit country. In addition to its continuing domestic heroin problem, China has seen a surge in the consumption of synthetic drugs, particularly Ecstasy (MDMA) and crystal methamphetamine, known locally as "ice." PRC authorities clearly understand the threat posed by drug trafficking within the PRC and in the region, and they continue vigorous law-enforcement activities to stem the production, abuse, and trafficking of narcotics within the PRC, as well as efforts to integrate the PRC into regional and global counternarcotics initiatives. The PRC is a party to the 1988 UN Drug Convention.

Cooperation with United States counternarcotics officials has strengthened over the past year. A joint U.S.-PRC investigation culminated in May 2003 with the breakup of a major heroin trafficking operation in Fujian Province. In 2003, the Chinese government also continued to provide U.S. counternarcotics officials with samples of drugs seized, including drugs destined for the United States.

Indonesia

Although by international standards not a major drug producing, consuming, or drug transit country, Indonesia has a growing narcotics problem in all three areas. The Indonesian National Police (INP) have participated in several international donor-initiated training programs and sought to commit increased resources to counternarcotics efforts. The INP has received equipment, including vehicles, computers, safety and tactical equipment to support its efforts against crime and drugs. INP efforts are firmly based on counternarcotics legislation and international agreements. The INP relies heavily on assistance from major international donors, primarily the U.S. Indonesia is a party to the 1988 UN Drug Convention.

Laos

The Government of Laos (GOL) continued to make some counternarcotics progress in 2003, primarily in its efforts to reduce opium poppy cultivation. Specific actions included: A sustained campaign to eradicate illicit opium poppy; better enforcement efforts against drug traffickers, increased counternarcotics cooperation with the U.S. by the GOL's Customs Department; continued counternarcotics cooperation with the United Nations Office of Drugs and Crime (UNODC) and several non-governmental organizations (NGO); continued cooperation and progress with the U.S.-Laos bilateral assistance program; an increased tempo of counternarcotics public awareness activities; and cooperation on HIV/AIDS, an issue related to drug use. In addition, the GOL decided to allocate for the first time a modest budget ($200,000) to the Lao National Commission for Drug Control and Supervision (LCDC), the GOL agency tasked with coordinating the fight against drugs.

The Ministry of Public Security's (MPS) cooperation with the DEA Vientiane Country Office was for all practical purposes nonexistent, and overall law enforcement cooperation remained unsatisfactory. However, the GOL's Department of Customs did cooperate with DEA on a fugitive case. Corruption remains a severe problem; GOL law enforcement authorities failed to arrest any major drug traffickers; and provincial counternarcotics units (CNU) have shown limited results after several years of USG support. Mainly due to extreme poverty, the GOL devoted few of its own modest resources to fighting drugs, relying overwhelmingly on the donor community. Laos is not yet a party to the 1988 UN Drug Convention; its stated goal is ratification of the Convention in the near future.

North Korea

For decades North Koreans have been apprehended for trafficking in narcotics and engaging in other forms of criminal behavior, including passing counterfeit U.S. currency. During 2003, there was one major heroin trafficking incident linked to North Korea. The "Pong Su," a vessel owned by a North Korean enterprise, was seized by Australian Federal Police (AFP) and other Australian security forces in mid-April 2003 after apparently delivering 125 kilograms of heroin to criminals at an isolated beach near Lorne, Australia. Another incident with a connection to North Korea occurred in June in Pusan, South Korea, where customs authorities seized 50 kilograms of methamphetamine from a Chinese vessel that had stopped at the port of Najin, North Korea, before arriving in Pusan. There were no methamphetamine seizures linked to North Korea in Japan in 2003. The "Pong Su" seizure and numerous drug smuggling incidents linked to North Korea over the past several decades, reflect official involvement in the trafficking of illicit narcotics for profit, and make it highly likely, but not certain, that P'yongyang is trading narcotic drugs for profit as state policy.

The Philippines

Philippine law enforcement agencies demonstrated continued progress in the war against drugs in 2003. The Philippine government continues to develop a dedicated counternarcotics capability in the newly established Philippine Drug Enforcement Agency (PDEA). However, based on the quantity of seizures in 2003, authorities assess that the Philippines has developed into a major producer of crystal methamphetamine. Evidence suggests links between terrorist organizations and drug trafficking activities. The Philippines is a party to the 1988 UN Drug Convention.

Thailand

Thailand has ceased to be a major source country for heroin, and the U.S. Government did not include Thailand in its annual survey of opium poppy cultivation and heroin production in Southeast Asia for 2003. Thailand is a major importer and consumer of amphetamine-type stimulants (ATS), which are largely manufactured in Burma. The ATS abuse problem in Thailand is the worst in the world. It is recognized by the Thai government and people as a major national security problem, and an important threat to the safety and health of the Thai people. The Thai government has had successes in implementing its comprehensive national strategy to combat illicit drug abuse, trafficking and production by controlling drug demand through prevention and treatment, and reducing drug supply by drug law enforcement, interdiction and drug crop elimination. During 2003, Thai authorities carried out an intensified national campaign to suppress illegal drug sales, which many observers claim led to complicity by some provincial police in killing of suspected drug traffickers. Drugs smuggled into Thailand also transit to other countries including the U.S. No quantified information on the extent of such transit is available. The U.S. as a matter of policy encourages Thailand to continue to implement its national drug control strategy, and to maintain and enhance its regional leadership role and growing status as a donor of drug control assistance to other countries. Thailand is a party to the 1988 UN Drug Convention.