Zilos

U.S. officials remain concerned about potential increases in Canadian-produced marijuana crossing the border in light of proposed cannabis legislation, said a State Department report released Friday.

There's already been an increase in U.S. seizures of Canadian marijuana, much of it more potent and profitable than what's grown south of the border. To combat that problem and others, officials want to share more intelligence with Canada, expand joint training and operations and work with Canadian officials to increase penalties for drug criminals, said the annual narcotics control strategy report.

The report noted the two countries already have an "excellent" law-enforcement relationship and said 2004 was a "productive " year for Canada in fighting the drug trade.

The departments applauded Canadian efforts to curb cross-border smuggling of chemicals used to manufacture various drugs. It also noted Canada's plan to target organized crime behind marijuana-growing operations.

But it said Canadian financial institutions remain vulnerable to money-laundering and terrorist financing from illegal drug sales.

Canada needs to keep actively participating in international groups dedicated to fighting those crimes and continue efforts in the timely sharing of financial information, it said.

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