1. The Eastern Pacific (EPAC) and the Western Caribbean present unique challenges to detection and monitoring: the EPAC due to its vast size, and the Western Caribbean because of the relatively short duration of go-fast smuggling events and the fact that many occur in or near the territorial waters of the surrounding countries.В Although Central America is primarily a transshipment point for Colombian heroin, Guatemala also grows opium poppy.В While opium poppy cultivation in Guatemala is relatively limited compared to major producing areas such as Mexico and Colombia, it is a matter of concern to Guatemalan authorities, and there are indications that opium poppy cultivation within the country may be increasing.В Opium gum produced in Guatemala is sent on to Mexico for processing into heroin and final sale in the United States.

2. The Eastern Pacific (EPAC) and the Western Caribbean present unique challenges to detection and monitoring: the EPAC due to its vast size, and the Western Caribbean because of the relatively short duration of go–fast smuggling events and the fact that many occur in or near the territorial waters of the surrounding countries.
'4; Although Central America is primarily a transshipment point for Colombian heroin, Guatemala also grows opium poppy.
'4; While opium poppy cultivation in Guatemala is relatively limited compared to major producing areas such as Mexico and Colombia, it is a matter of concern to Guatemalan authorities, and there are indications that opium poppy cultivation within the country may be increasing.
'4; Opium gum produced in Guatemala is sent on to Mexico for processing into heroin and final sale in the United States.

3. Operation All Inclusive I–2005 Under the auspices of the International Drug Flow Prevention Strategy, the first initiative, Operation All Inclusive I–2005, was developed to target not only the EPAC and Western Caribbean transit zones of Central America, but the land mass of the Isthmus as well.
'4; Due to the enormous volume of illicit drugs and money moving within this region and the threat described earlier in this testimony, four areas were established to exploit vulnerabilities in the movement of drugs and monies.
'4; These four areas consist of: maritime, overland, commercial air, and private air smuggling.

4. Several countries including Panama, have taken action to strengthen anti-money laundering legislation.В If the governments of Panama and other Central America countries continue to implement and fully enforce newly-enacted legislation, this will substantially decrease their appeal as a haven for money launderers.В We are beginning to see indications of their political will and are monitoring their progress.В Country Profiles Guatemala Guatemala is a major transshipment and storage point for South American drugs en route to the United States.В Its Eastern Pacific (EPAC) and Western Caribbean coasts provide the access needed for go-fast and containerized cargo to enter the country.В В Guatemalas numerous land routes out of the country facilitate drug transportation into Mexico.

5. Several countries including Panama, have taken action to strengthen anti–money laundering legislation.
'4; If the governments of Panama and other Central America countries continue to implement and fully enforce newly–enacted legislation, this will substantially decrease their appeal as a haven for money launderers.
'4; We are beginning to see indications of their political will and are monitoring their progress.
'4; Country Profiles Guatemala Guatemala is a major transshipment and storage point for South American drugs en route to the United States.
'4; Its Eastern Pacific (EPAC) and Western Caribbean coasts provide the access needed for go–fast and containerized cargo to enter the country.
'4;
'4; Guatemala‘s numerous land routes out of the country facilitate drug transportation into Mexico.