Opium trade undermines Afghan democracy, U.S. says

WASHINGTON (Reuters) - The United States estimated on Thursday that Afghanistan's opium production hit a record high last year and said the narcotics trade is undermining democracy and security in the Southwest Asian U.S. ally.

In its annual "International Narcotics Control Strategy Report" on worldwide efforts to combat narcotics, the State Department criticized Venezuela and Bolivia, saying anti-drug work was faltering in both nations.

The two volume, 1,045-page report praised Colombia, the world's largest cocaine supplier, for its "political will and tenacity" in fighting illegal drugs as well as Mexico, which is the main corridor for drugs flowing into the United States.

But it suggested far more needs to be done in many other countries, including Bolivia, Haiti, Venezuela and Afghanistan, which has been a key ally of the United States since U.S.-led forces toppled the Taliban regime in 2001.

The report said there is strong evidence that the drug trade helps fund and arm the Taliban, which sheltered al Qaeda before the September 11 attacks and which has launched a deadly insurgency against U.S.-led forces in Afghanistan.

"Drug profits now support elements of the Taliban and fund attacks on U.S. and NATO forces. While counternarcotics efforts intensified last year, results to date are insufficient. More must be done," Assistant Secretary of State Anne Patterson told reporters.

The report estimated 172,600 hectares (426,500 acres) were under poppy cultivation in Afghanistan in 2006, up from 107,400 hectares (265,400 acres) in 2005.

While that figure was below the record 206,700 hectares (510,800 acres) in 2004, the resulting opium production has hit a record of 5,644 tons because of improved crop yields, it said.

"The resurgence of Afghan opium cultivation has increased the flow of heroin to Europe, Russia and the Middle East, which undermines those societies and the consolidation of democracy and security in Afghanistan," the report said.

'POLITICAL WILL ... FALTERED'

The report is separate from the annual U.S. announcement of which countries have "failed demonstrably" to live up to international commitments to combat drugs, a step that can halt U.S. aid beyond counternarcotics and humanitarian funds.

Venezuela, led by leftist President Hugo Chavez, was placed on the list last year. The U.S. government is debating whether to add Bolivia, where President Evo Morales, a Chavez ally, has argued for greater legal cultivation of coca.

"Political will in Venezuela and Bolivia faltered last year," Patterson said. "Venezuela's permissive and corrupt environment led to more trafficking, fewer seizures and an increase in suspected drug flights over the past 12 months."

The report said the success of the Colombian government had triggered a shift of trafficking into neighboring countries like Venezuela.

It said Haiti, a major transit country for drugs from South America saw a surge in smuggling of cocaine out of Venezuela.

Asked if Bolivia was edging closer to the "failed demonstrably" standard, Patterson said: "We're certainly concerned about what appears to be a tendency of their government to increase the area under cultivation ... to basically make it legal to have small plots."

Patterson said the United States had not seen evidence of North Korean government involvement in narcotics in recent years but noted it has limited information about the country.