and illegal narcotics
trafficking, and fundraising for extremist organizations;
uncontested boundary dispute with Uruguay over Isla Brasilera at the
confluence of the Quarai/Cuareim and Invernada rivers, that form a
tripoint with Argentina; the Itaipu Dam reservoir covers over a once
contested section of Brazil-Paraguay boundary west of Guaira Falls
on the Rio Parana; an accord placed the long-disputed Isla
Suarez/Ilha de Guajara-Mirim, a fluvial island on the Rio Mamore,
under Bolivian administration in 1958, but sovereignty remains in
dispute

Illicit drugs:

second-largest consumer of cocaine in the world; illicit producer of
cannabis; trace amounts of coca cultivation in the Amazon region,
used for domestic consumption; government has a large-scale
eradication program to control cannabis; important transshipment
country for Bolivian, Colombian, and Peruvian cocaine headed for
Europe; also used by traffickers as a way station for narcotics air
transshipments between Peru and Colombia; upsurge in drug-related
violence and weapons smuggling; important market for Colombian,
Bolivian, and Peruvian cocaine; illicit narcotics proceeds earned in
Brazil are often laundered through the financial system; significant
illicit financial activity in the Tri-Border Area

This page was last updated on 18 December, 2008

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@British Indian Ocean Territory

Introduction
British Indian Ocean Territory

Background:

Formerly administered as part of the British Crown Colony of
Mauritius, the British Indian Ocean Territory (BIOT) was established
as an overseas territory of the UK in 1965. A number of the islands
of the territory were later transferred to the Seychelles when it
attained independence in 1976. Subsequently, BIOT has consisted only
of the six main island groups comprising the Chagos Archipelago. The
largest and most southerly of the islands, Diego Garcia, contains a
joint UK-US naval support facility. All of the remaining islands are
uninhabited. Between 1967 and 1973, former agricultural workers,
earlier residents in the islands, were relocated primarily to
Mauritius, but also to the Seychelles. Negotiations between 1971 and
1982 resulted in the establishment of a trust fund by the British
Government as compensation for the displaced islanders, known as
Chagossians. Beginning in 1998, the islanders pursued a series of
la