LETTER TO THE HONORABLE CHARLES B. RANGEL FROM DCI RE: ILLEGAL DRUGS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000100020131-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 5
• Document Creation Date: December 12, 2016
• Document Release Date: December 20, 2001
• Sequence Number: 131
• Publication Date: February 11, 1972
• Content Type: LETTER

11,
For kelease 2_Q02/02/25 ? CIA-RDP75B00380R000100020131-8
CENTRAI:. INTELLIGENCE AGENCY 01,C
WASHINGTON, D.C. 20805
OF THE DIRECTOR
'The Honorable Charles B. Rangel
House of Representative
;Washington, D. C. 20515
My dear M . Rangel:
eVi,w7-1,0
72-0125
, Thank you for your letter of 26 January 1972 inviting my comments
pon the entry into the United States of illegal drugs and the role of the
Central Intelligence Agency in coping with this problem.
You may be sure that this is a matter of major concern to this
Agency. Our activities consist largely of providing intelligence support
to the agencies that are members of the Cabinet Committee on Inter-
national Narcotics Control (CCINC). In this connection, you might be
interested in the attached Extension of Remarks by Congressman
Charles S. Gubser of California on June 2, 1971.
Your correspondent's inquiry concerns the scope of the national
effort regarding the drug problem, in addition to CIA's role. For further
information, I suggest that you might best contact Mr. Henry Cox of the
White House staff, who is Director of Public and Congressional Relations
fpr.the CCINC.
You may be sure that I fully share your concern about this matter
and hope you will' call on us at any time if we can be of further assistance.
1 I
Sincerely,
ttachmen
asie:
.?
CI)F(iR
Richard Heinle
Director'
75iao 3 0009010g
II
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25X1A 1 - BCC - Henry Cox (Hand carried by
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Approved For Release 2002/02/25 ? CIA-RDP75600380R00010002Q131-8
June 19'21 CONGRESSIONAL R E.CORD ? Extensions of Remarks
The objeetive Of the new policy Is to Indilee
foreign concerns to take the Antidumping
Aot into account hotr?T they engag,e I It
sales to the United Slates,
The 25 rereent itule
The Antidumping: Act provides that iii
normal situations fair valne :than he deter-
mined by compering the ex fail ory home
market price of the merchandise under
Vent ion \Vitt\ the ex factory price at which
the merchandise is sold in the United Statea.
If the price In the United States Is less than
the 110010 market price, then there are "sales
at loss than fair value" within the meaning
of the statute.
The Act also slates that In situations where
the quantity of merchandise sold in the
home market is no small in relation to the
quantity sold for exportation to countries
other than the United States. as to form an
Inadequate basis for comparison, then third
country price should be used as the basis for
comparison.
The Antidumping Regulations provide that
generally for purposes of determining what
constitutes an "inadequate basis of com-
parison" for fair value purposes, home mar-
ket sales will be considered to be inadequate
If less than 25 percent of the non-U.S. sales
of the merchandise are sold In the home mar-
ket.
The selection of home market or third
country price for fair value comparison can
easily be crucial to the results of antidump-
ing investigations, for frequently home mar-
ket price tends to be higher than third coun-
try price. This is particularly true where
merchandise is sold in a protected home mar-
ket and, when sold in third countries, is ex-
posed to the vagaries of world competition:
It has been Treasury's experience that
cases arise where sales in the home market
are adequate as a basis for fair value com-
parison, even though less than 25 percent of
the non-U.S. sales are sold in the home mar-
ket. From a technical standpoint, the exist-
ing regulations provide for this situation,
since the 25 percent rule is introduced by
the adverb "Generally." Examination of the
precedents, however, revealed that the Treas-
ury has not, in recent years at least, made
an exception in applying the 25 percent rule.
This left the Treasury with two alterna-
tives. It could have ignored the previous in-
terpretations of the Antidumping Regula-
tions which had, in effect, applied the regula-
tions as if the word "Generally" were not
there, or it court propose a change in the
Antidumping Regulations to eliminate the
25 percent rule. We chose the latter course.
The proposal was published in the Federal
Register of April- 27, and is currently open
for comment by, interested persons. Any COM-
ments receiVed will be carefully considered
before we take final action on this proposal.
A LOOK INTO THE FUTURE
In my judgment, we have only come to
the end of the beginning of the rejuvenation
process. But, I believe we have made a solid
start.
Let me take a final brief moment to touch
upon what I see happening in the future. We
have taken steps to initiate a fresh examina-
tion of the Treasury's antidumping proce-
dures and regulations to see what more can
be done. The regulations were substantially
revised in mid-1968 after a broad review,
with the dual objectives of conforming the
Treasury's procedures to the requirements
of the International Anti-Dumping Code,
and also of having the regulations imple-
ment in clear and precise language the ob-
jectives of the Antidumping Act. With al-
most three additional years of experience
under the regulations, as then revised, it Is
now appropriate to stop and take a new look ?
to see whether additional changes may be ap-
propriate. A Notice of Proposed Rule Making
.to this effect whs orbpykagargte
Register of Api01110,I HMV u
Sixty days are being allowed for the sub-
mission of comments. would assume that
many perions present here today?if you are
not &ready aware of the Treasury'fi invita-
tion to ettbmit comments may wish to do
no.
Lot, ow emphasize that the Tref-irony De-
partment emititmen, as islways, to adhere to
its policy of equitable adminiaration of the
Antidumping Act, With the increar;ed per-
sonnel assigned to this ii ('Id 1(11 (1 modernized
procedures and policies, we shall speed up
antidumping i?vestigations, thereby making,
administration of the law more effective?all
this without sacrificing equity.
Let me also emphasize that the Treasury
Department and the Adminiatration are
strongly opposed to having the Antidumping
Act transformed into an instrument of pro-
tectionism. On the other hand, we are
equally strongly opposed to allowing foreign
firms to injure U.S. industry by unfair price
discrimination. It Is with the latter objec-
tive in mind that the Treasury Department
introduced the changes in the administra-
tion of the Antidumping law, which I have
discussed with you today. To the extent that
we succeed in our objective, the Treasury's
rejuvenation of the Antidumping Act will
become an increasingly important influence
in favor of a freer international trade policy.
In conclusion, I would like to repeat a
statement made by Secretary Connally on
May 17 before the Subcommittee on Inter-
national Trade of the Senate ComMittee on
Finance:
"The efforts to foster Increased competi-
tiveness ill our economy must be actively
pursued in the context of fair and liberal
trading rrangements."
RAMPARTS MAGAZINE MISREPRE-
SENTS ROLE OF CENTRAL INTEL-
LIGENCE AGENCY IN FIGHTING
AGAINST IMPORTATION OF DAN-
GEROUS DRUGS
HON. CHARLES S.
OF CALIFORNIA
IN THE HOUSE OF REPRESENTATIVES
Wednesday, June 2, 1971
Mr. GUBSER. Mr. Speaker, recently
Ramparts magazine published an article
which, like so many other articles which
appear in new left publications, attempt-
ed to discredit established agencies of the
Government, including the Central In-
telligence Agency. Unfortunately, the
Stanford Daily, the newspaper pub-
lished by students at Stanford Univer-
,sity, saw fit to lend credibility to this
/article by reprinting it.
A tearsheet from the Stanford Daily
was sent to me by a constituent and I
submitted it to the Bureau of Narcotics
and Dangerous Drugs with a request for
comment. Under date of May 27 I re-
ceived a reply from Mr. John E. Ingersoll,
director of the Bureau of Narcotics and
Dangerous Drugs. His letter should be
brought to the attention of all responsible
Members of Congress and the press since
it certainly contradicts the implications
contained in the Ramparts magazine
article. Mr. Ingersoll's response follows:
Hon. CHARLES 5, GIJOSER
U.S. House 01 Representatives
Washington, D.C.
DEAR CONGREssmaN GUBSER: This is in 1. The reported increasing Incidence of
response to your letter of May 21, 1071, which heroin addiction among U.S. servicemen in
agickvgall betweenreigastintell Southeastigence Indicatinga
E5305
city) of the article entitled, "The New Opium
War," rts reprinted from "Ramparts Mag-
azine."
Charges made in the article appear to be
a part of a continuing effort, to discredit
III:eficim of the U.S. Government, such as the
U.S. Military, the NIL the CIA, and the De-
partment of fStrite, all of whieli are, in point
Ill fact, working actively with tile Bureau of
Narcotic:1 and Dangerous Drugs (FINDS)) in
our worldwide effort to curtail international
Mae; traffic.
Actually, CIA has for sometime been this
Bureau's strongest partner in identifying,
foreign sources and routes of illegal trade in
narcotics. Their help has included both direct
support in intelligence collection, as well as
in intelligence analysis and production. LAM-
11011 between our two agencies is close and -
constant in matters of mutual interest. Much
of the progress we are now making in iden-
tifying overseas narcotics traffic can, In fact,
be attributed to CIA cooperation.
In Burma, Labs, and Thailand, oplmn is
produced by tribal peoples, some of whom
lead a margin-al existence beyond the polit-
ical reach of their national governments.
Since the 19,50's, this Southeast Asian area
has become a massive producer of illicit
opium and is the source of 500 to 700 metric
tons annually, which is about half of the
world's illegal supply. Up to now, however,
less than ten percent of the heroin entering
the United States comes from Far Eastern
production.
The dimensions of the drug problem and
the absence of any strong political base for
control purposes has been a dilemma for
United Nations opium control bodies op-
erating in Southeast Asia for many years.
Drug traffic, use, and addiction appears to
have become accepted GS a fact of life in this
area and, on the whole, public attitudes
are not conducive to change.
The U.S. Government has been concerned
that Southeast Asia could become the major
source of illicit narcotics for U.S. addicts
after the Turkish production is brought
under control. The Bureau of Narcotics and
Dangerous Drugs, with the help of CIA,
.DOD, and the Department of State, has been
working to define and characterize the prob-
lem so that suitable programs to suppress
the illicit traffic and eliminate illegal opium
production, such as the proposed United
Nations pilot project in Thailand, can be
implemented.
It is probable that opium production in
Southeast Asia will be brought under effec-
tive control only with further political de-
velopment in these countries. Nevertheless,
in consideration of U.S. Military personnel
in the area, as well as the possibility that
opium from this area may become a source
for domestic consumption, concerned U.S.
Agencies, including CIA, Bureau of Customs,
DoD, and State, are cooperating with BNDD
to work out programs to meet the immedi-
ate problem as well as provide longer term
solutions.
Since the subject matter of your letter
concerns CIA, I have taken the liberty of
furnishing a copy along with my reply to
Director Richard Helms.
Sincerely,
JOHN E. INGERSOLL,
Director.
As art enclosure to his letter, Mr. In-
gersoll included a paper entitled "Recent
Trends in the Illicit Narcotics Market
in Southeast Asia." This should also be
of interest to every person Who is con-
cerned about this problem and I there-
fore include the text herewith:
RECENT TRENDS IN THE ILLICIT NARCOTICS
- MARKET IN SOUTHEAST ASIA
v
Approved Fdr"
and the United States may also be increas-
ing, suggest that Southeast Asia is grow-
ing in importance as a producer of heroin.
While this phenomenon in part reflects im-
provement in information available in re-
cent months to the U.S. Government, there
are also good indications that production of
illicit narcotics in Southeast Asia has in-
deed risen in 1971.
BACKGROUND
2. The Burma, Laos, Thailand border area,
1