Drugs, Law Enforcement and Foreign Policy (Kerry Committee Report), S. Prt. 100-165

100th Congress S. Prt. COMMITTEE PRINT 100-165 2d Session DRUGS, LAW ENFORCEMENT AND FOREIGN POLICY A REPORT PREPARED BY THE SUBCOMMITTEE ON TEKKORJSM, NARCOTICS AND INTERS • OPERATIONS OF THE . .. ); COMMIT TEE ON FOREIGN REI iATFONS II NJTED STATES SENATE r . i DECEMBER 1988 e Printed for the use of the Committee on Foreign Relations U.S. GOVERNMENT PRINTING OFFICE 96-845 WASHINGTON : 1989 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, DC 20402  LETTER OF TRANSMITTAL U.S. Senate, Committee on Foreign Relations, Washington, DC, April IS, 1989. Hon. Claiborne Pell, Chairman, Committee on Foreign Relations, U.S. Senate, Washington, DC, Dear Mr. Chairman: Two years'Sago, you directed the Subcom- COMMITTEE ON FOREIGN RELATIONS mittee on Narcotics, Terrorism and International Operations to conduct an investigation regarding the links between foreign CLAIBORNE PELL; Rhode Island, Chairman policy, narcotics and law enforcement in connection with drug traf- JOSEPH R. BIDEN, Ja., Delaware " ' JESSE HELMS, North Carolina ficking from the Caribbean and Central and South America to the PAUL §. SARBANES, Maryland ' RICHARD G, LUGAR, Indiana ALAN CRANSTON, California NANCY L. KASSEBAUM, Kansas United States. This Report is the final written product of that in- CHRISTOPHER J. DODD, .Connecticut /RUDY BOSCHWTTZ, Minnesota vestigation inthe 100th Congress. 'JOHN F. KERRY, Massachusetts LARRY PRESSLER, South Dakota Pursuant to your direction, the Subcommittee conducted four- PAUL SIMON, Illinois FRANK H. MURKOWSKI, Alaska TERRY SANFORD, North Carolina . PAUL S. TREBLE, Jr., Virginia teen days of open hearings, nine executive sessions, and received BROCK ADAMS, Washington ■ DANIEL J, EVANS, Washington testimony from 27 witnesses. In addition, the staff deposed an addi- DANIEL P. MOYNIHAN, New York ' . MITCH McCONNELL, Kentucky tional 20 witnesses. Thirty subpoenas were issued, many calling for Geeyld B. Chbistianson; Staff Director the production of extensive documentation. James P/- Lucieb, Minority Staff Director The Subcommittee's investigations resulted in a wide-ranging review of past policies and practices in handling foreign policy and Subcommittee on Tehboeism, Narcotics and International Operations the war on drugs. It is our privilege to transmit the report contain- JOHN F. KERRY, Massachusetts, Chairman ing findings and conclusions based on the investigation, a country- BROCK ADAMS, Washington MITCH McCONNELL, Kentucky by-country analysis of the drug problem as it has affected U.S. for- DANIEL P.. MOYNIHAN, New York FRANK H. MURKOWSKI, Alaska eign policy in Latin America, a review of drug links to the Contra movement and the Nicaraguan war, of money laundering, and of issues involving conflicts between law enforcement and national se- curity. Appendices to the report detail allegations of how the Com- with. mittee's initial investigation in 1986 may have been interfered We very much appreciate the support and assistance you have given us throughout the course of this investigation. I would like to note our personal appreciation for the efforts of the personnel who handled this investigation: Special Counsel Jack A. Blum, Kathleen Smith, and Jonathan Litchman of the Committee Staff; and Rich- ard McCall, Jonathan Winer, and David McKean of Senator Kerry's personal staff, along with Senator Kerry's former adminis- trative assistant, Ron Rosenblith. This report would not have been possible without their dedicated work. (m)  rv X^TT*^ beh€TS that this ^estigation has demon- strated that the drug cartels pose a continuing threat to national SpT*7^ often °T n*d aJ,I°?4 ^ ^at the U*ited Stat^ has too m the past allowed other foreign policy objectives to interfere witti the war on drugs. The Subcommittee hopes that this Report CONTENTS wlU [ contribute to better understand by the Congress Page problem, and to constructive legislative proposals which of this us to avoid repeating the mistakes of the past. may allow Sincerely yours, John Kerry, Chairman. Letter of Transmittal ; m Brock Adams. 1. Executive Summary and Conclusions 1 Daniel P. Moynihan. Past Failures 2 Policy and Priorities 3 Administrative Recommendations - 3 Specific Legislative Recommendations 4 2. INTRODUCTION 5 Origins and Methodology 5 The Scope of the Threat.,-. 7 Domestic Effects of International Drug Trafficking 8 Effects on Foreign Countries 9 The National Security Implications of the Drug Trade 10 Synopsis of the Report 12 Open Issues and Subjects Requiring Further Investigation 12 3. The Bahamas „ 14 Introduction : 14 Growth of Official Corruption with Vesco and Bannister - 15 Use of Norman's Cay For Smuggling 16 Response by U.S. to Lehder Problem - 17 Extent of Bahamian Corruption Today 19 Bahamas Seeks To Influence U.S. Policymakers 20 Bahamian Conclusions "Cooperation" ; 21 21 Appendix: State Declassified Material.. 23 4. Colombia : 25 Introduction .-, 25 Origins of Narcotics Trafficking in Colombia 26 Origin of the Cartels 27 Organization and Wealth 28 The Cartel's War Against the Colombian Government. 30 Adequacy of Legal and Law Enforcement Measures 30 Conclusions ':. 33 5. Narcotics Traffickers and the Contras...„ 36 . Introduction .. 36 Executive Branch Response to Contra Drug Allegations 37 The Guns and Drug Smuggling Infrastructure Develops 39 Drug Pilots The Trafficking and the Covert War ;. — --. 41 42 U.S. Government Funds and Companies with Drug Connections 42 A. SETCO/HONDU CARD3 44 B. FRIGORIFieOS DE PUNTERENNAS .-. 45 C. DIACSA - 47 D. VORTEX ; 48 John case' The Hullof George Morales and FRS/ARDE 1 , 49 53 San Francisco' The FrogmanConnection Cuban-American Case, UDN-FARN ; and PCNE 58 59 Ramon-Milian Rodriguez and Felix Rodriguez 61  Page VI vn ■ Page 6. Cuba and Nicaragua ~g2 Case Studies 126 Introduction _ go Michael Palmer „ 126 Historical Background !!.!!!!!! 63 Frank Camper , 128 Richard Brennecke ; 130 Cuba As a Way-Station Case History: for George MoraleSmugglers !!!!!!!™!!!!!!!!!!! !!!!!!!! s 63 Conclusion 132 64 Ideological Use of Drugs gg 12. Conclusions „ 133 Cuba, Panama and the Cartel "I!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 66 Castro Denies Involvement *"'!. gg National Security Issues 133 Allegations Summary andConcerning Federal Priorities 135 ConclNicaragua usions ;, !!!!!!!!!!!!!!!!!!!!!!!!!!!!! *" 67 gg Covert Activity Issues Law Enforcement Issues.-. 136 137 7- H^11 • 69 Money Laundering Issues 142 Introduction Personnel Issues 143 The Colombians Move In gg Neutrality Act..;. 144 !..!!!!!!!!!!!!!!!!! 70 The Miami Connection !!!!!!!!!!!!!!! 71 DEA's Operations in Miami and in Haiti APPENDIXES !.!!! ' 72 Conclusions * " Y2 A. Narcotics and the North Notebooks 145 8. Honduras yg Summary „ 145 Introduction Committee Action 146 Selected Drug Related Entries 146 History of Narcotics Bueso-Eosa, Trafficking Latchiniah and Narc in Honduras.!!';^™™!"™™^!!*!!!™!!*."!"' o-Terrorism 73 76 Ramon Matta Ballestero's „ " 77 B. Allegations' op Interference With The Committee Investigation 147 Eigoberto Regalado Lara :„...". !!!!!!!!!!!!!!! 78 Allegations of Interference .". 147 Policy Issues ; !!!!!!!!!!!!!!!!!!! ' Chronology 150 78 9. Panama ^ C. Witness List : , 167 Introduction 79 Witnesses ; 167 Origins of Corruption in Money Lamtdexii^ZZ Writs „ 169 Early Panamanian Involvement in NarcotZZZZZZ ics ZZZ 80 82 Subpoenas i 169 Noriega s Corruption of Panamanian Institutions • •»——-- ^ Depositions .'. 169 Noriega s Involvement in the Arms Business ' "' 84 Appendix Noriega and the Cartel.. - " oc Noriega's Rift with the Cartel 'f " 86 The Exhibits consist of documents referred to in footnotes. Noriega's U.S. Partners ZZZZZZ."""r 87 U.S. Knowledge of Noriega's Activities..!.™:"!!!!'!!!"!!! ' 88 ABA Why Did the U.S. Fail To Respond to Noriega Allegations?. ' Mixed Messages 91 State Report, 1988, International Department "Criminal Justice in Crisis" Narcotics - Control Strategy Eeport (LNCSE), 171 „„, 94 March 1988, Paraguay., 172 Conclusion.. ...!!!!!!!!!!!!!!!!!!!!! Appendix: GAD-NSC Correspondence!!!!!!!!!!!!!!!!!!!!!!.!!!!!!!!!!!!!!!!!!!!!!!!!! 97 97 State Department LNCSR, 1989, Mexico London Sunday Times Magazine, September 29, 1985: Paradise Lost ; 174 175 State Department LNCSR, 1988, Bahamas.... ; 199 NBC Nightly News, April 30, 1987 „ 200 Introductio State Department LNCSR, 1988, Bahamas 204 Defining then.Problem , „9f Money..... Lauhdering'!'..... ...!...;...!,!!!!!!!,„..„.„: !!!!!!!!!!!!!!!! „„ 112112 State Department INCSR, 1989, Bahamas ■. 205 The Bank Secrecy Act 'Restricts Money Laundering.........'. !.!!.!!. Black, Manafort and Stone, Proposal for the Government of the Bahamas 206 113 Bruce Bagley, "Colombia The International Loophole Case Histories ■ ■ " 113 State Department INCSR, and 1987,theColombia.- War on Drugs," Foreign Affairs .^.„ 226 249 Z'ZZ. 114 The Miami Herald, November 29, 1987, "The Medellin Cartel" 252 Cayman Islands : !.!!!!!!!!!!!..!.!!!!!!!.!!!!!!!!;!!! " 114" Bahamas _ !!!!!!!!!!!!!!!!!!!!!!!!"' 115 The Miami Herald, December 2, 1987, "Little Man Led to Big Drug Bust" 256 The Miami Herald, December 3, 1987, "Cartel's Killers Stalked Heroic Cop One Panama U.S. Money ResponseLaunderer's „ E^erience........; ■..„„.. ..J!!!!!!!!!!"!!!.! ;..;..!!!!!!!!!!!!!!!!!!!'!!!!!!!!!!!!!!! ' " 115 117 For a Year" 259 to the Problem ; !!!!!!!!!!!!!!!!!!!!!!!! 118 State Department INCSR, 1988, Colombia 262 Effectiveness of Current Reporting Requirements !!!!!!!!!!!!!!!!!!!!!!!! 119 State Dept. Doc. No. 3079c "Allegations of Misconduct of the Nicaraguan Summary and. Conclusions...^. . „„... !!!;!!!!!" 120 Resistance,* March, 1986...... 263 11. Law Enforcement vs. National Security: Confused Priorities State Dept. Doc. No. 5136c "Allegations of Drug Trafficking and the Nicara- 120 guan Democratic Resistance," July 26, 1986 : 266 _ Introduction North ipn Memo, Notebooks, Robert Owen"Pastora Revealed North, asApril Drug1, Dealer" 271 ; to Oliver 1985 272 Barry Seal and the Cartel !!!!!!!!!!!!!!!!! " 121 Letter, Eden Pastora to Elliot Abrams and David Sullivan, April 10, 1986 275 Bueso-Rosa and the Contras !.! !.!!!!!!!!!!!!!!!!!!"" 121 Customs Report, Guy Penilton Owen, May 9, 1983 _ 278 Intelligence vs. Law Misguided Priorities : Enforcement. ... ' " 122 Shippers Export Declaration, R/M Equipment, Inc., for Hondu Carib Cargo to v 123 Armed Forces of Honduras February 28, 1985 296 Consequences of Privatizing U.S. Foreign PoTicy'!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!'!!!!! 124 Statements,found Notebook aboard Soto, Hondu Carib Rodriguez, plane, "RobApril Owens".... 3, 1987 — 297 ^ Carlos in re: .Luis 298 Statements, Carlos Soto, in re: Luis Rodriguez, May 8, 1987 303  vm Page DC Statements, Carlos Soto, in re: Luis Rodriguez, June 17, 1987 307 AP,Sa April 14, 1987, "North Got FBI Report' on Contra-Supply Probe, Officials Tl9S? GPt' °f Enforcement Investigative Report, EugerioGarciaTAprii y' 517 Report, Pegasus/Camper, December 12, 1984 519 Testimony ofUS. Carlos S(^~8^i^^'^19&TZZ7"~ 310 MemCom, Jeffrey Feldman, November 18, 1987, Internal Security Section, Indictment, v. Floyd Carlton-Caceres et al ' oTo Criminal Division, Justice Department 527 Affidavit of DEA Agent Moritz, U.S. v. Carlton ' ogf Christian Science Monitor, "Justice Officials Find No Crime Link to Contra U.S. v. Caballero Motion for Permission to Travel '" qrt Leaders," May 6, 1986, Warren Richey 530 Indictment, U.S. v. Luis Rodriguez .... ' q«5 U.S. Department of Justice, Memo from Ken Bergquist to Steve Trott, re Frigorificos Account, NHAO, GAO Summary ' qra Upcoming "Contra" Hearings in the Senate Foreign Relations Committee, NHAO Signature Cards, Frigorificos de Punterennas... "" , ibb May 13, 1986 531 NHAO Records, Frigorificos . Attendees at May 6, 1986 Meeting between Foreign Relations Committee and Ocean Hunter, Inc. corporate records " """ orb Mi-. Shrimp; NCP Trading corp. records"."!"." Floridarec """ ' """ X government Messick agencies MemCom, May 6, 1986 '. meeting 533 535 Aquarius Seafood, Florida corp. ords. 370 Deposition of. Leon B. Kellner, Esq., November 8, 1989 ; 540 FBItssms. Investigative combing Report of George Kiszynski, -. rrom"rJC"Dia^"reCon'^ental o7-, Narcotics Investigation, October 5, 1988 (with attachments) 608 Drugs, Law Enforcement and Foreign Policy, Central America, September 28, 1987 (with attachments) 889 L1sai^9n John C' Lawn t0 Senatoi" ^^'^"i£^^T^^^'jmua^ Deposition of Thomas E. Marum, October 25, 1988 : 991 North notebook entries re "John Hull" " ooo Deposition of Mark N. Richard, November 7, 1988 1067 """" ™* Newsweek, "The CIA Blows An Asset".... "-" " Sanrtussoniello Franciseo Examiner, , letter to the Editor from U.s7'Attorney" J Joseph c nqa Teletype to FBI Director re ZavaWCab^ZZ777 Sn CBS Evening News, June 12, 1986 " -" ' '" . |Vq State Department documents, NHAO, back up documente"to"Frigoriricos"de ^Pirnterennas notarized by "Francisco Aviles Saenz".... - 411 ™ 302 s of George lOszynski, including statements of Rafael Tores Jimenez , Rene Corvo, Joseph Marcos, Francisco Hernandez . 41 q San^i^s^Examiner, "Big Bay Area Cocaine Ring "tied "to Contoas"" ■Letter Lugar;from Jolm"11,Bolton August 1986 to Senator" cTafrorn^P^Ua^^ 482 Aoa All Things Considered, May 5, 1986......'. "" " ' ' 43? Shippers Export Declaration, Florida Air Leasing Corp7'Mlrch 671985 "for ™ ^j^al Monda supphes" Aircraft Leasingfor "Salvadoran Refugees" 442 Corp, Invoice to "American Flyers," for Fort Lauder- dale-San Salvador-Fort Lauderdal e 443 Florida Aircraft. Leasing. Declaration, March"*, 1985!.... . J . Busmess Cards Moises Nunez, Frank Chanel from FBI InVestigative:"Fiies > released in U.S. v. Corbo _ .„„ . ? " . 44g frJl SS'SE? interview with Frank Report, mteryiew with Castro: Bamon l^^'^loS^^'^Xl^Z~.} .- . : 447 August 10, 1987 „ . mco . August 20, 1987 "" : : f.*"'' """"" -:^a - March 8, 1985 „ ;ZZZZZZZZZ ZZ ■ V""";"^" ; . *g Customs 1Report, interview with Ramon Mman"RodrigueI'May T 1983""""""" 462 Redacted State copy of DEA Department interview INCSR, 1988: of "Miami Attorney' ' - "" 470 Cuba „ _ , u Uf» Haiti .,..„;;;. . ; 4tg Honduras... ;„ ' ' V """ 404 New York Times, ^Military Officers"m"'Honauras" LnikedTo' Drug"Tr'ade7: ■ February 12, 1988, James LeMoyne e * ' 407 Washmgton ter Jromt Post, December ;;™„ 7, 1987,...;•„......,; :.„■. "U.S. Looks at Ho^du^'as''6r^" \ .Sa^• -489 Memorandum from Jose Blandon to Subcommittee,' February :T988""V"' " 492 Panama A Haven For Traffickers, Knut Royce, June 1985 "". -lit nSaSSS^Stt^''' 1985> "panamk -"-^ «!»>» .EnS-si NBC Nightly News, February 22, 1989... .-- -«• , «? Reuters, Pebruary-25, 1987, re.\Bueso-Rosa..<. h '" Sit AGeo?rferSa25' ^ <<Norfh.. ^ ™ Defending"'Convicted"Ho^^  EXECUTIVE SUMMARY AND CONCLUSIONS in "The American the past people how (our) mustandunderstand safety that of ourmuch betteris than children they ever threatened have by Latin drug conspiracies (which are) dramatically more successful at subversion in the United States than any that are centered in Moscow." 1 That warning was delivered in Subcommittee testimony by Gen- eral Paul C. Gorman, now retired and formerly head of U.S. South- ern Command in Panama. Such a characterization, coming from an individual who served with such distinction in the United States Army, should not be taken lightly. There should not be any doubt in anyone's mind that the United States is engaged in a war directed at our citizens— the old, the young, the rich, the poor. Each day, with what has become a numb- ing regularity, the American people are besieged with the news of the latest casualties in the drug war. The Colombian drug cartels which control the cocaine industry constitute an unprecedented threat, in a non-traditional sense, to the national security of the United States. Well-armed and operat- ing from secure foreign havens, the cartels are responsible for thousands of murders and drug-related deaths in the United States each year. They exact enormous costs in terms of violence, lower economic productivity, and misery across the nation. The American criminal justice system has been overwhelmed by the drug war. To date, most of the U.S. law enforcement efforts have been directed at the domestic drug distribution network. The result is a criminal justice system swamped with cases which cannot be processed fast enough, jails that are overflowing with prisoners, a greater influx of cocaine than when the war on drugs was declared in_1983, and a cheaper, higher quality product. As a recent study sponsored by the Criminal Justice Section of the American Bar Association noted: A major problem reported by all criminal justice partici- pants isthe inability of the criminal justice system to con- trol the drug problem . . . through the enforcement of the criminal law. Police, prosecutors and judges told the Com- mittee that they have been unsuccessful in making a sig- nificant impact on the importation, sale and use of illegal drugs, despite devoting much of their resources to the arrest, prosecution and trial of drug offenders.2 Attempts to interdict the flow of drugs at the border, while im- portant, has experienced only marginal success. According to U.S. officials in the vanguard of the war on drugs, at best, interdiction 1 Subcommittee testimony of General Paul Gorman, Part 2, February 8, 1988, p. 27. s Criminal Justice in Crisis, A Report to the American People and the American Bar on Crimi- nalton, Justice in the United DC, November 1988, P-States, 5. American1 Bar Association, Criminal Justice Section, Washing- (1)  2 3 results in the seizures of only 15 percent of the illegal narcotics coming into the country. For the drug cartels, whose production ca- that each U.S. government agency which had a relationship pabilities stagger the imagination, a 15 percent loss rate is more with Noriega turned a blind. eye to his corruption and drug than acceptable. dealing, even as he was emerging as a key player on behalf of Demand reduction through education and rehabilitation are criti- the Medellin cartel. cal elements in the war on drugs. But most experts acknowledge Policy and Priorities that even this strategy will require a considerable period of time before major inroads are made into significantly reducing cocaine -International drug trafficking organizations are a threat to usage in this country. . . . U.S. national security. Our government must first acknowledge The narcotics problem is a national security and foreign policy that the activities of the drug cartels constitute a threat of issue of significant proportions. The drug cartels are so large and such magnitude and then establish a more coherent and con- powerful that they have undermined some governments and taken sistent strategy for dealing with the problem. over others in :our hemisphere. They work with revolutionaries and -The threat posed by the drug cartels should be given a major terrorists>They have demonstrated the power to corrupt military priority, in the bilateral agenda of, the U.S. with a number of and civilian institutions alike. Their objectives seriously jeopardize countries, including the Bahamas, Haiti, Colombia, Bolivia and U.S. foreign policy interests and objectives throughout Latin Amer- Paraguay. It should be among the most important issues with ica and the Caribbean. a number of other countries, including Mexico and Honduras. The Subcommittee investigation has led to the following conclu- -In order to signal to. other countries the seriousness with which sions and recommendations. the United States regards the drug issue, the President should convene a summit meeting of Latin American leaders to begin Past Failures developing- a strategy to deal with this issue and related eco- nomic problems. — In the past, the United States government has either failed to -Narcotics law enforcement has often taken a back seat to other acknowledge, or underestimated, the seriousness of the emerg- ing threat to national security posed by the drug cartels. The diplomatic and national security priorities. The war on drugs reasons for this failure should be examined by the Senate must not in the future be sacrificed to other foreign policy con- siderations. Select Committee on Intelligence, in concert with the Senate Committee on Foreign Relations, to determine what corrective ADMINISTRATIVE RECOMMENDATIONS . steps should be taken. — In some instances, foreign policy considerations interfered with -The Treasury Department should begin negotiations on gather- . the U.S.'s ability to fight the war on drugs. Foreign policy pri- ing information oh large foreign U.S. dollar deposits, as au- orities towards the Bahamas, Honduras, Nicaragua, and thorized bythe 1988 Omhibus Drug Bill. Panama at times delayed, halted, or interfered with U.S. law -The State Department should make a special effort to control enforcement's efforts to keep narcotics out of the United multiple entry visas from countries which are major drug tran- States: In a few cases within the United States, drug traffick- sit countries or which harbor major drug organizations. ers sought ,to manipulate the U.S. judicial system by providing -The Federal Aviation Administration should undertake a services in support of U.S. foreign policy, with varying results. major effort to inspect hundreds of substandard aircraft, many — U.S. officials involved in Central America failed to address the of which are used for smuggling illegal narcotics. These air- drug issue for fear of jeopardizing the war efforts against Nica- craft are located throughout the United States, and those ragua. which mediately. do not meet FAA specifications should be grounded im- — The war against Nicaragua contributed to weakening an al- -Individuals who represent themselves as working for the CIA ready inadequate law enforcement capability in the region which was exploited easily by a variety of mercenaries, pilots, or other national security agencies of the United States Gov- and others involved in drug smuggling. The Subcommittee did ernment, and who in fact do not, should be prosecuted prompt- not find that the Contra leaders personally were involved in ly to the full extent of the law. drug trafficking. There was substantial evidence of drug smug- -All U.S. law enforcement agencies should devote significantly gling through the war zones on the part of individual Contras, greater attention to counter-intelligence in order to prevent Contra suppliers, Contra pilots, mercenaries who worked with drug traffickers from penetrating their operations. the Contras, and Contra supporters throughout the region. -The existing distrust among law enforcement agencies working — The saga of Panama's General Manuel Antonio Noriega repre- on the drug problem and national security agencies must be re- sents one of the most serious foreign policy failures for the solved. Ways must be found to make it possible for law enforce- ment agencies to have access to national security intelligence United States. Throughout the 1970's and 1980's, Noriega was information related to the drug threat. able to manipulate U.S. policy toward his country, while skill- -Federal salaries of senior prosecutors and investigators must fully accumulating near-absolute power in Panama. It is clear be raised and special Senior Executive Service positions ere-  5 ated in order to encourage the most talented and experienced the State Department to the House and Senate Foreign Affairs personnel to remain on the job. * ■ and Foreign Relations Committees, and Select Committees on Specific Legislative Recommendations Intelligence. — The annual drug certification report should be required to -The President should bef given a series of optional sanctions to review links between international narcotics trafficking, apply to major drug producing and drug-transit countries money laundering and international terrorism (mcluding guer- which have not fully cooperated with the U.S. in drug enforce- rilla groups on the right and the left with regard to ideology.) ment efforts. This would allow the President to certify a nation —The National Director of Narcotics Policy should be required under the national security provision of 481(h)(2)(a)(i)(ID, and to report to the Congress on current U.S. federal personnel thus avoid the mandatory sanctions contained in current law, practices affecting all persons engaged in the war on drugs to determine whether adequate resources are being devoted to while still giving him other - optional' sanctions. The proposed sanctions wtiuld include: prohibiting ships that have-stopped at hiring, training, promotion, and retention of federal employees such a nation within 60 days from discharging passengers or responsible for narcotics matters. cargo in the U.S.; denying landing rights ul the U.S. tothe na- tional airlines Of such' a nation; subjecting goods and contain- INTRODUCTION ers from any such nation tb'special inspections, quarantines, or Origins and Methodology other additional regulations to prevent them from being used to transport prohibited substahceV to the United States; deny- In early 1986, Senator John Kerry began a staff investigation of ing or lmuting non-immigrant visas to nationals of any such allegations that elements of the supply network supporting the nation; elimmating Customs pre-clearance agreements with Nicaraguan contras were linked with drug traffickers. In April, any such nation. -No government employee or official with responsibility for nar- 1986, "Senator Kerry took information he .had developed to the Chairman of the Foreign Relations Committee, Richard Lugar, who cotics issues in either the Executive or Legislative branches of government should be permitted to represent a foreign govern- agreed to conduct a staff inquiry into those allegations. ment on narcotics matters for a period Of three years after In response to a request the Lugar sched- by Senator Kerry, Senator Relations uled a closed session of Committee on Foreign on they leave. The penalties for violating such a prohibition June 25, 1986, to discuss these allegations and to determine wheth- should be the same as for violations of" the Federal Regulation er or not adequate attention and priority was being given to inter- of. Lobbying Act of 1946. ,: -, . . . , . national narcotics law enforcement efforts generally. Senator -The Department of State should he required to notify the Con- was concerned tShat because of the preoccupation with other Kerry gress within 10 days;,whenever it denies a- request from law en- forcement for reasons.' of national security .or ■ foreign policy. The notification should include a full description .of the reasons foreign not"priorities policy States was several, relating towith dealing adequately globalUnited natibnsythe