APRIL 1994


I. Summary

Cyprus neither produces nor consumes significant amounts of narcotics.
Its location in the eastern Mediterranean, and its well developed
facilities for business, tourism and international communications, make
Cyprus a convenient brokering site for traffickers.  The Government of
Cyprus (GOC) ratified the 1988 UN Convention in 1990.  Cyprus developed a
broad range of laws to meet the goals and objectives of the 1988 UN
Convention.  Police and customs authorities strictly enforce these laws,
and cooperate closely with the USG and other foreign governments.
Authorities control the movement of bullion and currency, which deters
traffickers from using Cyprus as a financial haven.  The Central Bank
monitors monetary activities, preventing widespread drug money laundering

II. Status of Country  

Cyprus is not a producer or a significant consumer of narcotics.
Authorities believe cannabis is the most widely abused illicit drug, but
some heroin is used as well.  Cyprus is not a significant producer or
importer of precursor and essential chemicals. 

 It has a system of voluntary control of such chemicals.

Cyprus' system of monetary and financial controls discourages potential
money laundering operations.  Officials have no evidence that such
activities take place.

III. Country Actions Against Drugs in 1993 

Accomplishments.  The GOC has entered a number of bilateral narcotics
agreements.  These included an agreement with the Italy to exchange
information on drug trafficking through the Balkans; a security
cooperation agreement with Greece, with particular emphasis on terrorism,
organized crime, and drug use and trafficking; and agreements with the
Czech and Slovak republics to join forces to combat organized crime and
drug trafficking.

Agreements and Treaties.  Cyprus, which ratified the 1988 UN Convention
in 1990, has strengthened penalties for trafficking and adopted laws for
the confiscation of profits and assets obtained from drug trafficking,
and is meeting the goals and objectives of the Convention.  Cyprus is
also a party to the 1961 Single Convention on Narcotics Drugs, its 1972
Protocol, and the 1971 Convention on Psychotropic Substances.  The US and
Cyprus signed a customs mutual assistance agreement in 1987,  The two
countries have long had an extradition treaty;negotiations are underway
to update it.

Law Enforcement Efforts.  The government enforces drug laws strictly,
and, in most cases, the judicial process operates effectively.
Narcotics-related criminal penalties range from several months to eight
years, with longer sentences handed down to traffickers and dealers.  In
1993 Cypriot authorities made 123 narcotics-related arrests, compared to
62 in 1992.


The de facto division of the island into an area controlled by the
Cypriot government and a Turkish speaking northern area, which is beyond
its control, limit international enforcement cooperation.  GOC
enforcement authorities have no direct working relations with Turkish
Cypriot enforcement authorities, or with Turkish enforcement officials.

Corruption.  Corruption is restricted to isolated instances.  Cyprus
prosecutes any public officials who facilitate the production, processing
or shipment of narcotic and psychotropic drugs and other controlled
substances, or who discourage the investigation or prosecution of such

Cultivation/Production.  The only known production is the limited, but
increasing, cultivation of cannabis for individual use.

Drug Flow/Transit.  The Cyprus police believe that their efforts to
combat drug trafficking have converted Cyprus from a drug transit point
to a brokering site for dealers.  Cyprus' location in the eastern
Mediterranean, its proximity to Lebanon, its highly developed business
and tourism facilities, and its modern telecommunications system attract
traffickers to Cyprus, where they can arrange deals with third-country

GOC authorities believe that traffickers continue to smuggle some heroin
and cannabis resin in the substantial ship cargo traffic which passes
through Cyprus.  However, authorities believe this traffic may be
decreasing because of improved stability in Lebanon, permitting Lebanese
containerized freight to be shipped directly, without transiting Cyprus.

Demand Reduction Programs.  The GOC encourages demand reduction and drug
use prevention, and supports private sector drug awareness programs.

IV.  US Policy Initiatives and Programs 

The USG and GOC cooperate closely on narcotics-related cases.  In
November, Cypriot authorities quickly assented to the USG's request to
conduct and complete a thorough search of a Cypriot-registered vessel
suspected of carrying illicit drugs in international waters. A USG
interagency team met with Cypriot officials and began the negotiation of
the extradition treaty. 

The Road Ahead.  The USG anticipates continued excellent cooperation from
both the Cyprus Police and Cyprus Customs.  The USG will encourage the
GOC to enact laws which would broaden and enhance narcotics law
enforcement activities, particularly on police undercover operations,
electronic surveillance, controlled deliveries and asset seizures.

[Chart:  Statistical Tables]