Illicit production of narcotic drugs increased during the reporting period; poppy cultivation spread to Guatemala and Colombia, and the 1988 Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances was passed. In addition, the Board stressed that all governments must institute machinery to permit effective international coordination in drug law enforcement. As an increasing number of diversion attempts have been made by illicit drug traffickers using falsified import certificates, the Board noted that controls applied in certain countries over firms engaged in international trade in narcotic drugs needed improvement. In the area of psychotropic substances, the report pointed out the necessity to establish and maintain a system to detect suspicious consignments in free ports and free zones. While diversions of substances in Schedule II have been largely prevented due to effective international controls, some substances on Schedules III and IV had been diverted from Europe to illicit channels on other continents. The Board is in the process of preparing a report on the demand for and supply of opiates for medical and scientific needs. Two further sections of the report cover the expiration of transitional reservations under Article 49 of the Single Convention and implementation of Article 12 of the 1988 Convention.