TNAG-1709-FCO40-2384-Hong-Kong-narcotics-offences-and-drug-trafficking-1988 — Page 25

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PARAGUAY

Summary: Paraguay is a transit country of increasing importance in the cocaine trade, with indications of role in cocaine refining. It is a significant producer and exporter of marijuana to regional markets. In response, through 1987 and continuing on into 1988, the DNNDP has decided to increase its manpower allocation utilized to investigate major trafficking organizations. This factor, combined with the receipt of essential material from the U.S.,

the U.S., plus the opening of a DEA office in Asuncion, should combine to enhance the scope of DNNDP activity. One can expect continued interest in narcotics-related training courses. In 1987 the GOP has already sent its DNNDP Director to a major regional and a major international narcotics-related conference. The GOP has also promised to assign a member of its Foreign Ministry to fulfill Paraguay's reporting requirements vis-a-vis the international narcotics treaties to which it is a signatory. End Summary.

In May-June 1987, the DEA marijuana survey aircraft spent nearly a week in Paraguay surveying existing marijuana fields in Eastern Paraguay, and potential cocaine laboratory sites in Western (Chaco) Paraguay. Initial observations have been

shared with Paraguayan Narcotics Police (DNNDP).

In response to this visit

this visit of DEA aircraft and analysts, the DNNDP quickened the pace of its marijuana eradication efforts in Amambay and Canendiyu provinces, Eastern Paraguay. The DNNDP succeeded in capturing more than ten tons of marijuana in the last three weeks of June alone. Numerous growers have been jailed, and the demonstrated great energy in tracking attempting to interdict trafficking with problem of marijuana production persists. Based upon aerial reconnaissance and ground operations, DEA and GOP sources have estimated 3,000 to 5,000 hectares of marijuana. This figure is up substantially from previous estimates.

district judge has down growers and in Brazil. Still, the

ring

In December-January, a major cocaine trafficking combining Hong Kong Chinese, Bolivians and Paraguayan citizens was broken up.

The Chinese ringleader planned to loads of cocaine to the U.S. in hearts of Publicity on this case awakened many Paraguayans to the growing danger of narcotics trafficking in and through Paraguay.

multi-kilo

cans.

ship palm

The Embassy has initiated efforts to obtain information on money laundering in Paraguay. Present indications are both Bolivian and Peruvian drug money has been used to purchase that ranchland property in the Chaco, and business property in and around Ciudad Presidente Stroessner in Eastern Paraguay.