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 Other Presidential Documents Force's List of Non-Cooperating Countries and Territories. To its credit Burma responded by drafting new anti-money-laundering legislation, but its passage has been delayed until sometime in 2002. In 200% the GOB took stronger, more aggressive law-enforcement actions against some ethnic groups, notably the Kokang Chinese, engaged in drug production and trafficking and considerably improved counternarcotics co- operation with China and Thailand. In areas controlled by the United Wa State Army (the principal drug-producing and drug-trafficking organization in Burma) the government has been very cautious, only slowly expanding its administrative presence, but not yet attempting any aggressive law-en- forcement operations comparable to those it has staged elsewhere. Al- though unwilling to risk confronting the Wa, a potent organization with a well-manned and well-trained military force, the GOB did take the modest steps of establishing a police presence in the Wa territories in 2001 and, in December 200% opening its first military intelligence office in the Wa territories. Seizures of opium in 200\177 modestly exceeded the amounts seized last year, but seizures of heroin declined for the fourth straight year. Burmese law- enforcement agencies seized approximately %629 kilograms of raw opium and 98 kilograms of heroin during 200\177. Heroin seized in 2000 totaled 159 kilograms compared to 273 kilograms in \177999 and 404 kilograms in \177998. The GOB has not yet taken effective action against methamphetamine pro- duction and trafficking. Considering that an estimated 800 million meth- amphetamine tablets are produced in Burma each year, the amounts seized in each of the past two years represent only small fraction of the total pro- duced and have no real effect on the overall scope of the problem. In 200% Burma seized 32.4 million methamphetamine pills, compared to 26.7 mil- lion pills seized during 2000. The GOB continued to refuse to transfer to U.S. custody drug lord Chang Qifu (Khun Sa), who resides in Rangoon, on grounds that he had not vio- lated his \177996 surrender agreement. The 1988 UN Drug Convention obli- gates parties, including Burma, to prosecute such traffickers. While recognizing that Burma has intensified its counternarcotics efforts in 200% particularly during the second half of the year, those efforts must be sustained and expanded, if they are to have a significant impact on the overall scope of the production and trafficking problem. Burma has not yet curbed involvement in illicit narcotics perpetrated by the largest, most powerful and most important trafficking organization within its borders, the United Wa State Army. On balance, the United States Government remains concerned that the GOB's efforts are not commensurate with the extent of Burma's illicit drug problem and believes that Burma has failed demonstrably to make substan- tial efforts to adhere to its obligations under international counternarcotics agreements and to take the counternarcotics measures set forth in section 489(a)(\177) of the Foreign Assistance Act. Large-scale poppy cultivation and opium production continue and enormous quantities of methamphetamines are produced in and trafficked from Burma, having serious adverse effects on neighboring countries and throughout the region. Its toleration of money laundering, its unwillingness to implement fully its counterdrug laws, and its failure to transfer notorious trafficker Chang Qifu (Khun Sa) under in- dictment in the United States are all serious concerns. 281

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