-Caveat Lector-

<<Rogene Waite, a spokeswoman at the U.S. Drug Enforcement Agency, said
her country’s controlled substance act defines hemp as marijuana.>>


Subject: Hemp-War Declared: Canada vs USA-(DEA)
Date: Wednesday, October 06, 1999 3:09 PM

THE  OTTAWA  CITIZEN
Ottawa, Ontario
October 5, 1999

KENEX SEED SEIZED AT U.S. BORDER

Hemp grower plans to take battle to court

By Jack Aubry

A Canadian Goose couldn’t get high on the stuff but 20 tons of Ontario
birdseed has been confiscated at the Windsor-Detroit border crossing
as part of the U.S. war on drugs.

The truckload of bird feed, which is sterilized seeds processed from
industrial hemp, has been sitting in a Detroit warehouse since early
August after the U.S. Customs Service swooped down on it at the
border.

“It’s very silly.  They are telling us that this a truck full of
marijuana when in fact a bag couldn’t get a buzz from the seed,” said
Jean Laprise from this Chatham-area farm on Monday.

Laprise says instead of enforcing the law, the U.S. drug officials are
making it up because American legislation clearly exempts sterilized
hemp seed from its list of controlled substances.

He estimates the value of the birdseed at $35,000 and says he is now
being threatened with fines of about $500,000 if he doesn’t recall
already shipped products.

Laprise, the owner of Kenex Ltd., is caught in what the New York Times
calls “one of the most bizarre episodes of Washington’s campaign to
curb illicit drug use.”  Hemp and marijuana are different types of
Cannabis sativa but the U.S. government rarely recognizes the
distinctions when it comes to that particular plant species.

It has been over a year since the Canadian government declared hemp a
legitimate crop.

The birdseed seizure is the first time the legislation change in
Canada has run afoul of American drug laws.

While smoking marijuana will lead to a noticeable high, smoking hemp
will have no psychoactive effect.  The psychoactive component of
marijuana, known as THC for tetrahydrocannabinol, usually varies
between five and 20 per cent of a leaf.

The only mind-altering threat posed by the birdseed sitting in
Detroit, which has a THC content of 0.0014 per cent, comes from trying
to imagine how minuscule its psychoactive component is to its
consumer.  Fourteen parts per million THC would hardly make a bird
chirp, let alone reach a higher altitude.

Rogene Waite, a spokeswoman at the U.S. Drug Enforcement Agency, said
her country’s controlled substance act defines hemp as marijuana.

She released a statement from the agency which said that U.S. agencies
“have become aware that sterilized cannabis seed has been imported in
the U.S. for use in food products for human consumption.

“Furthermore, some of that seed, and products made from the seed, may
be contaminated with THC.”  The agency’s position is that any product
containing any amount of THC can only be imported into the U.S. by a
company that is appropriately registered with DEA.

John Roulac, the president of Nutiva, a California company which has
been supplied by Kenex, called the confiscation “crazy”.

“When there are real criminals running around, I guess we have to stay
focused on people who are obeying the law,” said Roulac.  “The reality
is that they are allowing shipments of hemp from France and Germany
right into the U.S.”

He termed the minute amount of THC found in 40,000 pounds of birdseed
“like an olive pit in a railroad car.”

Roulac says the publicity about the seizure has outraged Kenex’s U.S.
customers, who are buying its hemp seeds and fibres for food and
beauty products.  He says he has sold 100,000 hemp bars in the past
five months and drug enforcement officers are trying to shut down the
market.

“In California, this is being laughed at.  Kenex is the largest, most
successful hemp processor in Canada.  They are about as far away as
you can get from a drug dealer.  I mean give me a break,” said Roulac.

He explained that the small amount of THC detected in the seed comes
from unavoidable contact with leaves of the hemp plant.

Lambton-Kent-Middlesex MP Rose-Marie Ur echoed Roulac’s comments,
calling Kenex “a very above-board company.”  She said the U.S.
officials were “making a mountain out of a molehill” and the
confiscation is “absolutely ridiculous.”

She supports the company’s intentions to challenge in court under the
North American Free Trade Agreement the DEA’s interpretation of its
drug laws.(END)

(NEXT)

THE  LONDON  FREE  PRESS
London, Ontario
October 5, 1999

U.S. HALTS ONTARIO HEMP AT BORDER

By John Miner

The U.S. Drug Enforcement Agency has delivered a body blow to
Ontario’s fledgling hemp industry, stopping a shipment of hemp
products to the U.S. and ordering the processor to recall 17 other
tractor-trailer loads.

Jean Laprise, president of Kenex Ltd., said his Chatham-Kent company
now faces more than $700,000 in penalties and has lost the major
market for its products.

“It’s not just us.  It will seriously affect several Canadian
operations,” Laprise said yesterday.

Laprise said he also expects several U.S. customers will be forced out
of business because they won’t be able to get supplies from Canada.
Many have poured money into developing and marketing hemp products.

Hemp production is legal in Canada, but banned in the U.S., although
the U.S. imports hemp products from other countries.  Several U.S.
farm groups are now suing their government over the ban.

Hemp is used in a wide variety of products, including textiles,
automotive parts and edible oils.

Kenex Ltd. is one of two Southwestern Ontario companies that contract
with farmers to grow hemp.  The other is Middlesex-based Hempline
Inc., which has a processing plant in Delaware.

Laprise said Kenex has not broken any rules and filed an objection
yesterday under the Free Trade Agreement.  The U.S. Drug Enforcement
Agency isn’t following the rules, he said.

Ontario Agriculture Minister Ernie Hardeman said he has asked the
federal government to take quick action to deal with the Kenex
situation.

“We hope the federal government will get on it,” he said.

Production of hemp in Ontario has been supported by the provincial
government with grants to get the industry going.

“We have an interest in making sure that industry succeeds,” said
Hardeman.

Laprise said most of the hemp products shipped to the U.S. were bird
seed containing hemp seed.  The DEA objected, saying the material was
banned because it contained THC, the psychoactive material found in
marijuana, a relative of hemp.

Laprise said Kenex had the material tested in Canadian labs, proving
that the THC content was only 14 parts per million, but the Americans
refused to accept the results.

Geoffrey Kime of Hempline said his company also depends heavily on the
U.S. markets, but hasn’t had any difficulty shipping fibre to the
U.S.  The problems facing Kenex show there is still some
misunderstanding about hemp, Kime said.

Laprise said Kenex can’t pay the $700,000 in penalties imposed by the
DEA.  Jobs at Kenex are also in jeopardy.

“Twenty people are working here.  Those jobs didn’t exist a year and a
half ago,” said Laprise.  “We were hoping to add another 10 jobs, not
take away 10 or 20 jobs.”(END)


(NEXT)

THE SHELBURNE FREE PRESS & ECONOMIST
Shelburne, Ontario
September 28, 1999.

Hemp growers fear forthcoming report

By West Keller

Hemp may prove to be a new source of income for southern Ontario
farmers, but those who would pioneer the harvesting could face a dual
threat, a Shelburne-area supporter says.

Mark Benvenete, a longtime local spokesman for hemp interests, says
there’s a serious risk of financial loss on the farm, and an emergent
risk of seizure at the U.S. border for those who would export to the
American market.

Mr. Benvenete’s comments on hemp followed a weekend “field day” at a
hemp site on the Alan and Shirley Meech farm near Shelburne.

Part of the day focused on a forthcoming federal report on the health
risks of hemp products, a document that the growers say is not only
flawed but is lacking in scientific methodology.

Mr. Benvenete said the outcome of the report could be to create
Canadian safety guidelines that might be 1,000 times more stringent
than any elsewhere in the world and, he says impossible to measure.

The report is not yet publicly available, but a 200-page draft was
leaked to the Toronto Globe & Mail last March.

Although interest in the recent field day may have been less than
expected, participants included major hemp producer Jean Laprise of
Kenex, and research scientist Dr. Ernest Small of Agriculture Canada.

Kenex, said Mr. Benvenete, has a 1,500 acre plantation near Chatham.
The Meech farm expects to grow 40 acres next year.

In decades past, hemp was a common crop in North America. Its fibre
was used principally for production of rope. It became a suspect crop
when it was, perhaps unfairly, associated with marijuana, a similar
plant containing high levels of the narcotic THC.

The hemp grown in Canada contains virtually no THC, but can be used in
the production of soap, salad dressings, clothing, ice cream, and
burgers, among other things.

Financially, Mr. Benvenete says the only way to be certain of earning
a profit by growing hemp is to be able to separate the seed from the
fibre and pulp and find a market for both. There are markets in the
United States. But the U.S. Drug Enforcement Agency recently seized a
tractor-trailer load of seed which had been consigned to a bird-seed
distributor, apparently thinking that the seed could be used to
cultivate crops containing the narcotic THC.

In fairness to the DEA, Mr. Benvenete says there are two sub-species
of hemp, one which does have enough THC in the husk to qualify it as a
drug.

But Canadian farmers don’t grow that species. In any event, the seed
is removed from the husk before it is exported.

The shipper of the seized load of seed (at Detroit on Aug. 9) was
Kenex, Canada’s leading producer and processor of industrial hemp
products.

Now, says Mr. Benevnete, the DEA is demanding a recall of all prior
Kenex shipments, “including oil, granola bars, horse bedding and
animal feed.”

He quotes Kexex president Jean Laprise as saying in a taped interview
that “all the proper documentation has been supplied to Customs in the
past in accordance with our broker’s instructions.

“Kenex has always acted in good faith and has never violated any U.S.
laws. Our U.S. legal counsel has advised us that the DEA and U.S.
Customs are acting in clear violation of the U.S. laws as well as the
NAFTA.”(END)

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