U.S. FAULTS CANADA FOR LETTING DRUGS ACROSS BORDER

Ottawa Failing To Crack Down On Exports Of Ingredient In Speed, White House
Says

WASHINGTON and OTTAWA -- Ottawa's belated efforts to throttle massive and
illicit shipments to the United States of a chemical used to make illegal
narcotics were called "inadequate" yesterday by President George W. Bush,
adding yet another irritant to growing border disputes.

While praising Canadian police, the White House faulted Ottawa for failing
to crack down on soaring exports -- likely more than 100 tonnes annually --
of pseudoephedrine, a key chemical component of methamphetamine, which is
also known as speed.

White House drug czar John Walters said methamphetamine use is rising
rapidly in the United States in a deadly echo of the crack epidemic. A
substantial portion of pseudoephedrine used to make speed comes from
Canada, he said yesterday in an interview, adding that he believes Canadian
authorities know that new federal regulations that came into force in
January are inadequate and that tough rules to control the illicit export
are needed.

Solicitor-General Wayne Easter said U.S. concerns about pseudoephedrine
have been largely addressed in the new regulations, but if not, Ottawa will
review them. He noted that the drug trade is a two-way street and illegal
narcotics come into Canada from the United States, too.

The White House said "the regulations . . . should be stronger."

Canada was included for the first time yesterday in an annual U.S. report
that names the offenders in the international illicit drug trade. The
Netherlands was also in the report for the first time, although neither
country was on the 23-nation list of major drug-exporting countries, which
was unchanged from last year and includes nations such as Burma, Colombia,
Guatemala and Nigeria.

Canada and the Netherlands were named for failing to stop illicit exports
of synthetic drugs to the United States. However, the Dutch government
received high praise for its efforts.

"We are confident that the government of the Netherlands is committed to
close collaboration and co-operation internationally to eliminate ecstasy
production and trafficking," said Paul Simons, acting Assistant Secretary
of State for International Narcotics and Law Enforcement Affairs.

Mr. Simons said Ottawa wasn't doing enough. "We would like the Canadians to
take a closer look at who it is that's importing these substances," he said.

Drug Enforcement Agency officials have claimed that gangs of Arabs in
Canada with links to terrorist groups have reaped huge profits from illicit
exports of pseudoephedrine to the United States.

The RCMP say they have no evidence of links to terrorist groups, and
defence lawyers for some of the more than 100 men charged in connection
with illicit imports of pseudoephedrine from Canada call accusations of
terrorist links a smear campaign.

While neither the White House nor the State Department repeated that
accusation yesterday, the inclusion of Canada in Mr. Bush's annual
determination of countries contributing to the global illicit drug trade
signalled that Washington plans to intensify pressure on Ottawa to crack
down further.

"Although the United States enjoys an excellent level of bilateral
co-operation with Canada, the United States government is concerned that
Canada is a primary source of pseudoephedrine and an increasing source of
high-potency marijuana," the report said.

U.S. officials say imports of pseudoephedrine into Canada have soared in
the past five years to more than 170 tonnes annually from about 30 tonnes.
While the chemical is a legitimate ingredient in cold remedies, Washington
believes that most of a huge increase in imports to Canada is being
clandestinely shipped into the United States to make methamphetamine.

Michel Juneau-Katsuya, a former agent with the Canadian Security
Intelligence Service, dismissed the U.S. action as "pure politicking."

"The U.S. has been trying to make us a scapegoat for a long time. As far as
I'm concerned, it's all just a big, political game. They're trying to pass
the buck, but the fact is, it stops with them.

"Now it's drugs. Before, they accused us of letting in terrorists. And that
was bogus, too. The Sept. 11 hijackers didn't come through Canada. They
came through the front door."