CHANOS CALLS FOR TOUGH ACTION ON METHAMPHETAMINE 'SUPER LABS' COMING OUT OF
MEXICO

Attorney General George Chanos on Tuesday called for the Bush
administration to toughen its response to methamphetamine imports from
Mexico, including possible action against firms overseas that supply
Mexican "superlabs" with ingredients for the drug.

Mexico imports more than 250 metric tons of ephedrine and
pseudoephedrine annually, while the country's legitimate uses for the
chemicals in legal medications are limited to only 50 metric tons,
Chanos said, citing figures given to state officials by the White
House this week.

"Clearly the balance, I believe, may be being used by Mexican
superlabs," Chanos said. Drug lords utilize the precursor chemicals in
manufacture of methamphetamine, a highly addictive stimulant being
used with alarming health and crime effects in a number of states.

Chanos, attending the annual conference of the National Association of
Attorneys General, asked about meth and Mexico when the state
officials met Monday with White House drug czar John Walters.

Walters, director of the Office of National Drug Control Policy,
responded the Bush administration was talking with Mexico and with
Germany, China and India, where chemical and pharmaceutical firms
legally export ephedrine and pseudoephedrine, Chanos said.

U.S. officials are trying to persuade Mexico to voluntarily reduce its
imports to the amounts that could be put to legitimate use.

Walters "indicated it was a serious issue that they are involved in
ongoing negotiations," Chanos said, adding he did not know if he had
confidence the talks will bear fruit.

"The United States should be doing everything it can to combat Mexican
superlabs including but not limited to cutting off the supply of
precursors," Chanos said.

The Nevada official said federal authorities should "consider what
legal remedies might be available against German, Chinese and Indian
companies that may be aiding and abetting a criminal enterprise by
providing Mexican superlabs with the necessary precursors."

Walters was traveling on Tuesday, a spokeswoman said, and White House
staff was not immediatley able to confirm his remarks to the attorneys
general or his possible view on the Nevadan's comments.

Earlier this week, White House deputy anti-drug director Scott Burns
discussed the administration's efforts during an appearance in Arkansas.

Burns said administration officials have identified nine companies
that manufacture precursors and "there is an obligation by the federal
government to try and stop the flow of pseudoephedrine to Mexico,
which is being diverted for illegal purposes."

While not wanting to limit their ability to do business, Burns said
U.S. officials are carrying on frank discussions with the firms about
what are legitimate amounts of product to ship to Mexico.

The officials "are literally traveling to these nine companies that
produce ephedrine and pseudoephedrine and saying, 'you're poisoning
us,'" Burns said.

Rob Moritz of the Stephens Media Arkansas News Bureau contributed to
this story.