NEARLY 5 TONS OF COCAINE FOUND ON SHIP

HOUSTON - Federal authorities confiscated nearly five tons of cocaine
from a cargo ship delivering iron ore to Houston yesterday. It was one
of the biggest cocaine busts in U.S. history.

"This amount of cocaine could put at least one dose of the drug in the
hand of every schoolchild across America, from preschool to high
school," Transportation Secretary Rodney Slater said at a news
conference at the Houston Ship Channel.

"By stopping it before it moves to our streets and our schools, we do
the work of the American people," he said.

The 9,500 pounds of cocaine was packaged in 190 50-pound bundles. The
cocaine seizure was one of the 10 largest in U.S. history, Slater said.

Customs Service officials said it was the biggest cocaine case ever
investigated by that agency in Texas.

Yesterday, President Clinton commended the federal agencies involved
in the investigation "for their tireless work in curbing the flow of
illegal drugs."

Coast Guard officials found the cocaine Jan. 12 while inspecting the
580- foot freighter Cannes, a Greek-owned, Panamanian-registered vessel.

They boarded the ship in the Caribbean, about 125 miles southwest of
Jamaica, after the captain gave his consent. The bundles of drugs were
hidden in a crater beneath 4-5 feet of iron ore in the forward hold.

Adm. James Loy, commandant of the Coast Guard, declined to say whether
his agency had prior intelligence of drug activity aboard the ship.

"Our challenge is to extend our borders as far away from Texas and
Louisiana and the Florida coast as possible and seize this contraband
on its way to the United States," Loy said.

Authorities believe that the drugs were smuggled onto the vessel after
it picked up 26,000 metric tons of iron ore from Brazil on Dec. 20.

However, they do not know whether the drugs were loaded while the ship
was at sea or at another port.

The vessel's last port of call before it was boarded by the Coast
Guard was Punta Buera, Trinidad, on Jan. 6.

"Somewhere out there are some very angry and disappointed drug
smugglers," U.S. Customs Commissioner Raymond Kelly said.

Coast Guard officials remained aboard the Cannes until it arrived in
Houston on Wednesday night.

Five of the 24 crew members were arrested: the captain, three officers
and a seaman. The captain is Greek; the others are Panamanian,
Ukrainian and Nicaraguan.

They face federal charges of illegal importation of cocaine and
violation of maritime drug enforcement laws.

The other sailors, most of whom are Ukrainian, were questioned by
authorities and remain aboard the vessel, which is anchored in the
ship channel.

Officials with the Coast Guard, Customs Service and Drug Enforcement
Administration said other arrests were anticipated as the
investigation continues.

The ship is owned by Quest Ocean Way Limited of Paraeus,
Greece.

Marilyn Hebinck, a lawyer representing the ship owner's insurer,
declined to comment.

Jack Holman, the vessel's Houston-based shipping agent, said he was
working with federal authorities to determine the origin of the drugs.