US TAGS RP AS MAJOR DRUG HUB

WASHINGTON has la-beled the Philippines as a major source and
trans-shipment point of illegal drugs.

According to the annual report conducted by the US Department of State
which was released March 1, the Philippines has developed into a major
producer of crystal methamphetamine, locally known as "shabu," based on the
quantity of seizures last year.

"Domestic production of methamphetamine exceeds demand, with most of the
precursor chemicals smuggled into the Philippines from surrounding
countries, primarily from the People's Republic of China," the report said.

It noted that the wholesale price of methamphetamine ranges from P800,000
to P1 million per kilogram ($14, 500 to $18,000). The same methamphetamine
sells on the street for twice that amount.

The US report also cited the Philippines as a transshipment point for
further export of methamphetamine of foreign manufacture to Japan,
Australia, Korea, the United States, Guam and Saipan.

The US government further said that Philippines also produces, consumes and
exports marijuana and that Philippine authorities continue to encounter
difficulties stemming production.

"Marijuana is generally cultivated in areas inaccessible by vehicles and/or
controlled by insurgent groups," it added.

Also, the US State Department said that corruption continues to hamper the
intensified drive against illegal drugs.

"Corruption and inefficiency among government officials also complicate
eradication efforts," it said.

Based on the information gathered by Washington, most of the marijuana
produced in the Philippines is consumed locally while the rest is being
smuggled out to Australia, Japan, Malaysia, Taiwan and Europe. The
wholesale price of marijuana is estimated around P11,160 per kilogram
($203). Street price varies according to the quality of the product.

Furthermore, the MDMA, otherwise known as Ecstasy, is fast becoming a
recreational drug in the Philippines.

"Philippine government authorities report a surge in Ecstasy use among
young, prosperous adults, particularly in bars and clubs. The street price
for an Ecstasy/MDMA tablet is estimated to be P1,500 [$27]," the report said.

And while the US government lauded the administration for its relentless
efforts to curb the problems on illegal drugs, Washington said the law
enforcement agencies "are less efficient in developing and transmitting
intelligence on outbound shipments."

"While the GRP has chemical controls laws, enforcement of them is uneven.
This is due to a perceived unwillingness of prosecutors to pursue cases
where only precursor chemicals and no drugs are seized and of judges to
accept the seized chemicals as evidence," it said.

The US also said that several procedures of the Philippine law enforcement
agencies apparently restrain the authorities to effectively carry out their
mandate.

"Major evidentiary and procedural obstacles exist in the Philippines in
building effective narcotics cases. Restrictions on the gathering of
evidence hinder narcotics investigations and prosecutions. Philippine laws
regarding electronic surveillance and bank secrecy regulations constrain
prosecutors' ability to build narcotics cases," the US said.

Also, the report noted links between big-time drug traffickers and
local-based terrorists such as the Abu Sayyaf Group and the Communist Party
of the Philippines and its armed wing the New People's Army.

These groups were earlier listed in the Foreign Terrorist Organizations of
the US government.

"Throughout 2003, Philippine authorities drew clear linkages between drug
trafficking activities and terrorist organizations. The Abu Sayyaf Group
(ASG), a U.S.-designated Foreign Terrorist Organization operating in the
extreme southwest of the Philippines, collects money from drug smugglers by
acting as protectors for foreign trafficking syndicates. The ASG also
controls a thriving marijuana production site in Basilan," it said.

Citing intelligence report, the State Department said that the CPP/NPA
receives money for providing safe haven and security for many of the
marijuana growers in the northern Philippines and collects "revolutionary
taxes" on the sale of drugs.

The 2003 International Narcotics Control Strategy Report (INCSR) is an
annual report by the Department of State to Congress prepared in accordance
with the Foreign Assistance Act. It describes the efforts of key countries
to attack all aspects of the international drug trade in Calendar Year 2003.

Assistant Secretary Robert Charles of the Bureau of International Narcotics
and Law Enforcement said that the annual report "really marks the narcotics
control performance of all the countries that have received INL, State
Department INL assistance in the last two fiscal years.

"It focuses special attention on the major drug producing and drug transit
countries, and it also includes, by law, the major money laundering
countries and major precursor chemical countries," he said in an interview
posted at the website of the US Embassy in Manila.