THE WASHINGTON TIMES, Monday, May 3, 1999

KLA finances war with heroin sales

By Jerry Seper

The Kosovo Liberation Army, which the Clinton administration has
embraced and some members of Congress want to arm as part of the NATO
bombing campaign, is a terrorist organization that has financed much of
its war effort with profits from the sale of heroin.

Recently obtained intelligence documents show that drug agents in five
countries, including the United States, believe the KLA has aligned
itself with an extensive organized crime network centered in Albania
that smuggles heroin and some cocaine to buyers throughout Western
Europe and, to a lesser extent, the United States.

The documents tie members of the Albanian Mafia to a drug smuggling
cartel based in Kosovo's provincial capital, Pristina. The cartel is
manned by ethic Albanians who are members of the Kosovo National Front,
whose armed wing is the KLA. The documents show it is one of the most
powerful heroin smuggling organizations in the world, with much of its
profits being diverted to the KLA to buy weapons.

The clandestine movement of drugs over a collection of land and sea
routes from Turkey through Bulgaria, Greece and Yugoslavia to Western
Europe and elsewhere is so frequent and massive that intelligence
officials have dubbed the circuit the "Balkan Route."

Mr. Clinton has committed air power and is considering the use of ground
troops to support the Kosovo rebels against Yugoslav President Slobodan
Milosevic. Last week, Sen. Mitch McConnell, Kentucky Republican, and
Sen. Joseph I. Lieberman, Connecticut Democrat, called on the United
States to arm the KLA so ethnic Albanians in Kosovo could defend
themselves against the Serbs.

Mr. McConnell and Mr. Lieberman introduced a bill that would provide $25
million to equip 10,000 men or 10 battalions with small arms and
anti-tank weapons for up to 18 months.

In 1998, the U.S. State Department listed the KLA -- formally known as
the Ushtria Clirimtare e Kosoves, or UCK -- as an international
terrorist organization, saying it had bankrolled its operations with
proceeds from the international heroin trade and from loans from known
terrorists like Osama bin Laden.

"They were terrorists in 1998 and now, because of politics, they're
freedom fighters," said one top drug official who asked not to be
identified.

The U.S. Drug Enforcement Administration, in a recent report, said the
heroin is smuggled along the Balkan Route in cars, trucks and boats
initially to Austria, Germany and Italy, where it is routed to eager
buyers in France, Germany, Italy, the Netherlands, Portugal, Spain,
Switzerland and Great Britain. Some of the white powder, the DEA report
said, finds its way to the United States.

The DEA report, prepared for the National Narcotics Intelligence
Consumer's Committee (NNICC), said a majority of the heroin seized in
Europe is transported over the Balkan Route. It said drug smuggling
organizations composed of Kosovo's ethnic Albanians were considered
"second only to Turkish gangs as the predominant heroin smugglers along
the Balkan Route." The NNICC is a coalition of federal agencies involved
in the war on drugs.

"Kosovo traffickers were noted for their use of violence and for their
involvement in international weapons trafficking," the DEA report said.

A separate DEA document, written last month by U.S. drug agents in
Austria, said that while the war in the former Yugoslavia had reduced
the drug flow to Western Europe along the Balkan Route, new land routes
have opened across Romania, Hungary and the Czech Republic. The report
said, however, the diversion appeared to be only temporary.

The DEA estimated that between four and six metric tons of heroin leaves
each month from Turkey bound for Western Europe, the bulk of it
traveling over the Balkan Route.

A second high-ranking U.S. drug official, who also requested anonymity,
said government and police corruption in Kosovo, along with widespread
poverty throughout the region, had contributed to an increase in heroin
trafficking by the KLA and other ethnic Albanians. The official said
drug smuggling is "out of control" and little is being done by
neighboring states to get a handle on it.

"This is the definition of the wild, wild West," said the official. "The
bombing has slowed it down, but has not brought it to a halt. And,
eventually, it will pick up where it left off."

The heroin trade along the Balkan Route has been of concern to several
countries:

The Greek representative of Interpol reported in 1998 that Kosovo's
ethnic Albanians were "the primary sources of supply for cocaine and
heroin in that country." Intelligence officials in France said in a
recent report the KLA was among several organizations in southern Europe
that had built a vast drug-smuggling network. France's Geopolitical
Observatory of Drugs said in the report that the KLA was a key player in
the rapidly expanding drugs-for-arms business and helped transport $2
billion worth of drugs annually into Western Europe. German drug agents
have estimated that $1.5 billion in drug profits is laundered annually
by Kosovo smugglers, through as many as 200 private banks or
currency-exchange offices. They noted in a recent report that ethnic
Albanians had established one of the most prominent drug smuggling
organizations in Europe. Jane's Intelligence Review estimated in March
that drug sales could have netted the KLA profits in the "high tens of
millions of dollars." The highly regarded British-based journal noted at
the time that the KLA had rearmed itself for a spring offensive with the
aid of drug money, along with donations from Albanians in Western Europe
and the United States.

Several leading intelligence officials said the KLA has, in part,
financed its purchase of AK-47s, semiautomatic rifles, shotguns,
handguns, grenade launchers, ammunition, artillery shells, explosives,
detonators and anti-personnel mines through drug profits -- cash
laundered through banks in Italy, Germany and Switzerland. They also
said KLA rebels have paid for weapons using the heroin itself as
currency.

The profits, according to the officials, also have been used to purchase
anti-aircraft and anti-armor rockets, along with electronic surveillance
equipment.