BY SUNDOWN, the San Cristobal’s cargo was onshore, but it was still inside the port perimeter. Flatbed trucks were choking the three bridges they had to cross to pick up their imports. Stuck in a tailback along the Niederfelde Brücke was one from Darmstadt with a swarthy man at the wheel. His papers would show he was a German citizen of Turkish extraction, a member of one of Germany’s largest minorities. They would not reveal that he was a member of the Turkish mafia.
Inside the perimeter there would be no tailback. Customs clearance for a certain steel container from Suriname would be problem-free.
So vast is the quantity of freight entering Europe via Hamburg that a rigorous examination of every container is quite simply impossible. German customs, the ZKA, does what it can. Around five percent of incoming cargoes secure close examination. Some of these are random, but most derive from a tip-off, something odd about the description of the cargo and its port of departure (bananas do not come from Mauritania) or just inadequate paperwork.
The checks may involve opening the sea container by breaking the seals, measuring containers for secret compartments, chemical tests in the on-site laboratory, the use of sniffer dogs or just X-ray inspection of the collector truck. Around 240 trucks in a single day are X-rayed. But one banana container would have no such problems.
This container had not been taken to the HHLA Fruit and Refrigeration Centre because it was tagged to depart the docks too quickly to make that worthwhile. Clearance at Hamburg is achieved largely by the IT-based ATLAS system. Someone had entered the twenty-one-digit registration number of the consignment into the ZKA computer and cleared it for release before the San Cristobal had come around the last curve in the river Elbe.
When the Turkish driver had finally inched his way to the head of the queue by the dock gate, his steel container was cleared for collection. He presented his papers, the ZKA man in his booth by the gate tapped them into his computer, noted the clearance for a small import of bananas for a modest little fruit company in Darmstadt and nodded the go-ahead. In thirty minutes, the Turkish driver was back over the bridge, gaining access to the sprawling network of Germany’s autobahns.
Behind him rode one metric ton of pure Colombian cocaine. Before sale to the final inhalers, it would be “cut” or “bashed” to six or seven times its original volume with the addition of other chemicals like benzocaine, creatine, ephedrine or even the horse tranquilizer ketamine. These simply convince the user he is getting a bigger thrill than could be acquired from the amount of cocaine actually going up the nose. Further bulk can be achieved with simple but harmless white powders like baking soda and icing sugar.
With every kilo of a thousand grams converted into seven thousand, and the buyers paying up to $10 U.S. per gram, each kilo of pure would finally sell out at $70,000. The driver had a thousand such kilos behind him, a street value of $70,000,000. Based on the pasta bought from the Colombian jungle peasants for $1,000 a kilo, there was enough to cover the cargo plane to Suriname, a fee for the banana plantation, the tiny freight charge on the San Cristobal and $50,000 slipped into the Grand Cayman account of the corrupt official in Hamburg.
The European gangsters would bear the cost of blenderizing the hard bricks into talc-like fine powder, cutting to multiply the bulk and merchandising to the users. But if the overheads from jungle to Hamburg dock gate were five percent and the European overheads another five, there was still ninety percent profit to split between the cartel and the mafias and gangs across Europe and the USA.
The American President would learn all this from the Berrigan Report, which hit his desk three days later as promised.
While he read the report after dinner, another two tons of Colombian pure in a pickup truck sneaked across the Texan border near a small town called Nuevo Laredo and vanished into the American heartland.
Dear Mr. President,
I have the honor to present the report on the narcotic cocaine as requested by you.
ORIGINS: Cocaine derives solely from the coca plant, a weedy undistinguished shrub that has grown since time immemorial in the hills and jungles of the northwestern arc of South America.
Over that same period it has been chewed by local natives who found that its effect was to mute their permanent hunger and stimulate their mood. It rarely produces flowers or fruit; its stem and twigs are woody and without application; only the leaves contain the drug.
Even then the drug constitutes well under one percent of the leaf by weight. It takes 375 kilograms of harvested leaf—enough to fill a pickup truck—to create 2.5 kg of coca paste— the intermediate form—which in turn will provide one kilo of pure cocaine in the familiar white powder form.
GEOGRAPHY: Of the global supply today, approximately 10% comes from Bolivia, 29% from Peru and 61% from Colombia.
However, Colombian gangs take over the product of the two smaller contributors at the coca paste stage, complete the refining and merchandise virtually 100% of the drug.
CHEMISTRY: There are only two chemical processes needed to turn the harvested leaf into finished product and both are extremely cheap. That is why, given the desperate poverty of the jungle farmers who grow what is virtually only a very tough and hardy weed, eradication at source has proved so far impossible.
The raw leaves are steeped in an old oil drum in acid—cheap battery acid will do—which soaks out the cocaine. The sodden leaves are then scooped out and thrown away, leaving a sort of brown soup. This is shaken up with alcohol or even gasoline, which leaches out the alkaloids.
These are skimmed off and treated with a strong alkali such as sodium bicarbonate. This mixture delivers a scummy off-white sludge which is the basic paste, or “pasta.” This is the standard unit of the cocaine trade in South America. This is what the gangsters buy off the peasants. About 150 kg of leaves have become 1 kg of pasta. The chemicals are easily obtained and the product is easily transportable from jungle to refinery.
FINISHING: In secret refineries, also usually hidden by the cover of the jungle, the pasta is converted into snow-white cocaine hydrochloride powder (the full name) by adding more chemicals such as hydrochloric acid, potassium permanganate, acetone, ether, ammonia, calcium carbonate, sodium carbonate, sulfuric acid and more gasoline. This concoction is then “reduced,” the residue dried, and what is left is the powder. All the ingredient chemicals are cheap and, being involved in many legitimate industries, easy to acquire.
THE COSTS: A coca-growing peasant, or “cocalero,” may work like a dog all year harvesting up to six crops from his jungle patch, each crop netting him 125 kgs of coca leaf. His total production of 750 kgs of leaf will yield five kilos of pasta. After his own overheads, he may earn just $5,000 a year. Even after refining to powder, one kilogram can be priced at about $4,000.
THE PROFITS: These are the highest for any product in the world. That single kilogram of Colombian “pure” rises from $4,000 to $60,000 to $70,000 just by traveling three thousand miles from the coast of Colombia to the USA or five thousand miles to Europe. Even that is not the end. The kilogram will, at the buyer’s end, be “cut” (adulterated) to six times its weight and volume without loss of price per gram. The users will finally pay the last dealer in the chain about $70,000 for that sugar-bag-sized kilogram that left the coast of Colombia valued at just $4,000.
RESULTS: These profit margins guarantee that the big operators can afford the finest technology, equipment, weaponry and expertise. They can employ world-class minds, bribe officialdom—in some cases up to the national presidential level—and are almost embarrassed by the number of volunteers clamoring to help in the transportation and merchandising of their product in exchange for a cut. No matter how many low-level “mules” are caught and sent to prison, there are always thousands of the destitute and/or stupid prepared to volunteer to take the risks.
STRUCTURES: After the killing of Pablo Escobar of the Medellín cartel and the retirement of the Ochoa brothers of Cali, the gangsters in Colombia split into up to a hun
dred mini-cartels. But over the past three years, a new and gigantic cartel has emerged that has unified them all under its domination.
Two independents who tried to hold out were found dead after spectacular suffering, and resistance to the new unifiers ceased. The mega-cartel calls itself the Hermandad, or “Brotherhood,” and operates like a major industrial corporation with, in back, a private army to guard its property and a psychotic punishment squad to enforce its discipline.
The Brotherhood does not manufacture cocaine. It buys the entire product of every mini-cartel as the finished white powder product. It offers a “fair” (its own definition) price not on a take-it-or-leave-it basis, but on a take-it-or-die basis. After that, the Hermandad merchandises to the world.
QUANTITIES: Total product is about 600 tons per year, and this divides into about 300 tons for two destinations: the USA and Europe, almost the only two continents that use the drug. Given the profit margins listed above, the total profits are not calculated in hundreds of millions of dollars but in tens of billions.
DIFFICULTIES: Because of the vast profits, it may be there are twenty traders between the cartel and the end user. These traders may be transporters, passers on or final sellers. That is why it is extremely hard for the FLO (Forces of Law and Order) in any country to touch the big players. They are massively protected, use extreme violence as a deterrent and never even touch the product personally. The smaller fry are constantly caught, tried and jailed, but they seldom “squeal” and are immediately replaced.
INTERCEPTIONS: American and European FLO are in a constant state of war with the cocaine industry, and interceptions of cargo in transit or captures of depots are ongoing. But the FLO of both continents achieve only around 10 to 15% of the cocaine market, and, given the staggering margins, this is not enough. It would be necessary to raise the “intercept” and “confiscate” levels to 80% or more to cripple the industry. If they lost 90%, the cartels would implode and the cocaine industry would at last be destroyed.
CONSEQUENCES: Only thirty years ago cocaine was popularly regarded as mere “nose candy” for socialites, bond traders and entertainers. Today it has grown to a massive national scourge causing disastrous societal damage. On two continents, the FLO estimate that around 70% of acquisitive street-level crime (car theft, burglary, mugging, etc.) is carried out to get the funds to support a habit. If the “perp” is high on the particularly vicious by-product of cocaine called “crack,” insensate violence may accompany robbery.
Beyond that, the profits of cocaine, once laundered, are used to fund other crime forms, especially trafficking weapons (also used for crime and terrorism) and people, most particularly illegal immigrants and abducted girls for the sex-slave trade.
SUMMATION: Our country was quite properly devastated by the destruction in the fall of 2001 of the World Trade Center and the attack on the Pentagon, which cost almost 3,000 lives. Since then no American inside the homeland has died from foreign-generated terrorism, but the war on terrorism goes on and must go on. Yet in that decade, a conservative estimate must put the figure of destroyed lives through narcotic drugs at ten times that 9/11 casualty cost, and half of these by the chemical called cocaine.
I have the honor to remain, Mr. President,
ROBERT BERRIGAN
Deputy Director (Special Operations)
Drugs Enforcement Administration
AROUND THE TIME the Berrigan Report was being delivered by messenger to the White House, a British ex-customs officer sat in a nondescript dockside office in Lisbon staring in extreme frustration at a picture of a battered old trawler.
Tim Manhire had spent his whole adult life as an excise man, not always the most popular of professions but one he believed to be profoundly necessary. If revenue-gathering for a greedy government from a hapless tourist does not quicken the blood, his job in the dusty back streets of Lisbon’s dockland was a fulfillment of a sort, and would have been more so but for the frustrations of that old enemy: inadequate resources.
The small agency he headed was MAOC-N, yet another acronym in the world of law and order. It stood for Maritime Analysis Operations Center for Narcotics and drew together experts from seven countries. The six partners of the UK were Portugal, Spain, Ireland, France, Italy and the Netherlands. Portugal was the host, and the director was a Britisher, transferred from HMRC (Her Majesty’s Revenue & Customs) to SOCA (Serious and Organised Crime Agency) to take the job.
What MAOC did was to try to coordinate the efforts of the European FLO and naval forces to counter the smuggling of cocaine from the Caribbean Basin across the Atlantic to the twin coasts of Western Europe and West Africa.
The reason for Tim Manhire’s frustration that sunny morning was that he could see another fish with a big and valuable cargo about to slip the net.
The photo had been taken from the air, but beyond taking pretty pictures the patrol aircraft had been helpless to do anything. It had simply passed the image within seconds to MAOC many miles away.
The photo showed a shabby beam trawler on whose bow was the name Esmeralda-G. She had been found by a stroke of luck just on the cusp of darkness and dawn in the eastern Atlantic, and the absence of a wake indicated she’d just hove to after cruising unseen through the night. The definition was good enough for Manhire, peering through the magnifying frame above the picture, to see that the crew was about to drape her from stem to stern with a blue tarpaulin. This was the standard practice for cocaine smugglers at sea to avoid detection if they could.
They cruised at night, then spent the day bobbing silently beneath a tarpaulin that blended with the surrounding sea, extremely hard to spot from above. At sundown the crew peeled back the tarpaulin, stowed it and cruised on. It took time, but it was also safer. To be caught at dawn about to drape the tarpaulin was a giveaway. This was no fish catcher. Her cargo was already in the hold, up to a ton of white powder, multiwrapped and baled to prevent salt and water damage, where it had been since loading at a rotten timber jetty in a creek of Venezuela.
The Esmeralda-G was clearly heading for West Africa, probably the narco-state of Guinea-Bissau. If only, Manhire groaned, she had been farther north, passing the Spanish Canary Islands, or Portugal’s Madeira or Azores. Either country could have put a Coast Guard cutter to sea to intercept the trafficker.
But she was way down south, a hundred miles north of the Cape Verde Islands—but they could not help anyway. No equipment. And it was no good asking the line of failed states running in a curve around from Senegal to Liberia. They were part of the problem, not the solution.
So Tim Manhire had appealed to six European navies and the USA, but they had no frigate, destroyer or cruiser in the neighborhood. The Esmeralda- G, having seen the aircraft that photographed them, would have realized they were spotted and would have abandoned the tarpaulin trick to cruise hard for landfall. They had only two hundred nautical miles to go, and even at a plodding ten knots would be safe among the mangrove swamps off the Guinea coast before the morrow.
Even after an interception at sea, the frustrations did not end. After a recent stroke of luck, a French frigate had responded to his plea and found, with MAOC’s directions, a coke-carrying freighter four hundred miles out. But the French were obsessed with legal niceties. Under their rules, the captured smugglers had to be towed to the nearest “friendly” port. That happened to be another failed state—Guinea-Conakry.
Then a French magistrate had to be flown from Paris to the captured ship for “les formalités.” Something about the rights of man—les droits de l’homme.
“Droits de mon cul,” murmured Jean-Louis, Manhire’s colleague on the French contingent. This even the Britisher managed to recognize as “rights of my arse.”
So the freighter was impounded, the crew arraigned and the cocaine confiscated. Within a week the ship had slipped her moorings and sailed. She was crewed by her own team, who had easily secured bail from a magistrate who had graduated from a dusty Peugeot to a new Merced
es, and the impounded bales had, sort of, vaporized.
So the director of MAOC sighed and filed the name and image of the Esmeralda- G. If she was ever seen again . . . But she would not be. Forewarned, she would be rerigged as a tuna fisher and renamed before entering the Atlantic again. And even if she did, would there be another lucky aircraft belonging to a European navy that just happened to be flying past when the tarpaulin was flapping in the breeze? It was a thousand to one.
That, thought Manhire, was most of the problem. Tiny resources and no retribution for the smugglers. Even if they were caught.
A WEEKLATER, the U.S. President sat alone with his director of Homeland Security, the super-agency that collated and overlorded the thirteen primary intelligence-gathering agencies of the USA. He stared at his commander in chief in astonishment.
“Are you serious, Mr. President?”
“Yes, I believe I am. What do you advise?”
“Well, if you are going to try to destroy the cocaine industry, you will be taking on some of the most vicious, violent and ruthless men in the world.”
“Then I guess we are going to need someone even better.”
“I think, sir, you mean even worse.”
“Do we have such a man?”
“Well, there is a name, or rather a reputation, that comes to mind. He was for years head of counterintelligence at the CIA. Helped trap and destroy Aldrich Ames when he was finally allowed to. Then he headed Special Ops for the Company. Almost trapped and assassinated Osama bin Laden, and that was before 9/11. Released two years ago.”
The Cobra Page 2
