HINTERGRUND, Heft 03-09 - Das weltweite Drogennetzwerk der CIA
Von PETER DALE SCOTT
1 "9/11, Deep State Violence and the Hope of Internet Politics," Global Research; cf. Peter Dale Scott, The Road to 9/11: Wealth, Empire, and the Future of America (Berkeley and Los Angeles: University of California Press, 2007), 4-7, 14-17, etc.
2 Alan A. Block, East Side-West Side: Organizing Crime in New York, 1930-1950 (New Brunswick, NJ: Transaction Books, 1983), 109.
3 Gaia Servadio, Mafioso (New York: Dell, 1976), 125-28.
4 R.T. Naylor, Hot Money and the Politics of Debt (New York: Linden/Simon and Schuster, 1987), 295 ("laundromat"). For Helliwell’s ownership, see Alan A. Block, Masters of Paradise (New Brunswick, NJ: Transaction Publishers, 1991), 165-66.
5 CIA Memo dated 24 April 1974, "RYBAT/JMSPUR/PLVWCADET Traffic Removed from C/WHD Personal Files during Watergate File Search. Traffic can be found in sealed sensitive envelope in safe No. 1322 located in WH/COG, Room 3D46," NARA # 104-10095-10326. C/WHD (Chief of Western Hemisphere Division) in 1974 was Theodore Shackley, discussed below. All of the CIA and FBI documents discussed in this essay can be seen on the Mary Ferrell website, http://www.maryferrell.org/.
6 Block, Masters of Paradise, 161-62, 166.
7 Alan Block subsequently learned that it was the bank’s co-founder, Chicago lawyer "Burt Kanter, more so than Helliwell, who was instrumental in Castle’s formation." He cites speculation that it was originally set up on behalf of the former Cleveland mob racketeer, Morris Kleinman (Block, Masters of Paradise, 172).
8 Jim Drinkhall, "IRS vs. CIA: Big Tax Investigation Was Quietly Scuttled By Intelligence Agency," Wall Street Journal, April 18, 1980.
9 Wall Street Journal, April 18, 1980.
10 Alfred W. McCoy, The Politics of Heroin (Chicago: Lawrence Hill Books/ Chicago Review Press, 2001), 168-74; Block, Masters of Paradise, 169 (Thai police).
11 Alan A. Block and Constance A. Weaver, All Is Clouded by Desire: Global Banking, Money Laundering, and International Organized Crime (Westport, CN.: Praeger, 2004), 38; citing Stephen Schlesinger and Stephen Kinzer, Bitter Fruit: The Untold Story of the American Coup in Guatemala (Garden City, NY: Anchor Books, 1983), 119. Cf. Peter Dale Scott, The War Conspiracy: JFK, 9/11, and the Deep Politics of War (Ipswich, MA: Mary Ferrell Foundation Press, 2008), 47, 67.
12 Wall Street Journal, April 18, 1980.
13 CIA Memo of 18 August 1976 for Chief, Security Analysis Group, NARA #104-10059-10013. The margin of the memo carries the following handwritten reference to Sam Giancana, the major figure in the CIA-mafia assassination plots against Fidel Castro: "for file/ Sam GIANCANA/ not mentioned."
14 Jonathan Marshall, Drug Wars: Corruption, Counterinsurgency and Covert Operations in the Third World (Forestville, CA: Cohan and Cohen, 1991), 54; citing Drinkhall, Wall Street Journal, April 18, 1980.
15 Block notes that the spinoff of I.D.C. from Benguet was accompanied by a "payment of $329,439 to a Hong Kong Bank" (possibly into a Marcos account) (Block, Masters of Paradise, 98).
16 Profits from the Philippine gold mine, and possibly gold itself, reached I.D.C. from Asia. But I have not seen corroboration for the claim of Sterling and Peggy Seagraves that Groves and Helliwell were actually moving parts of the Japanese wartime gold hoard to the Bahamas "out of the Philippines, masquerading as gold from Benguet Mines" (Sterling and Peggy Seagrave, Gold Warriors: America’s Secret Recovery of Yamashita’s Gold [London: Verso, 2003], 147). It is, however, of interest that the Marcos family also entered into business dealings with the CIA-related Nugan Hand Bank (see below), which some say included negotiations for the surreptitious shipment of Marcos‘ gold (Jonathan Kwitny, The Crimes of Patriots [New York: Norton, 1987], 182, 186-87, 190).
17 Lernoux, In Banks We Trust, 83.
18 Marshall, Drug Wars, 54-55. Cf. U.S. Congress, House, Committee on Government Operations, Oversight Hearings into the Operations of the IRS (Operation Tradewinds, Project Haven, and Narcotics Traffickers Tax Program), Hearings (Washington: GPO, 1975, 909; Peter Dale Scott, Coming to Jakarta: A Poem about Terror (New York: New Directions, 1989), 99-103. It is not known if ID Corp. and I.D.C. were related.
19 For the CIA’s close involvement in Lockheed payoffs, see Anthony Sampson, The Arms Bazaar (New York: Viking, 1977), pp. 137, 227-8, 238. The U.S. Air Force was also involved. San Francisco Chronicle, October 24, 1983, p. 22, describes one such USAF-Lockheed operation in Southeast Asia, "code-named ‚Operation Buttercup‘ that operated out of Norton Air Force Base in California from 1965 to 1972."
20 "The United States and the Overthrow of Sukarno, 1965-1967," Pacific Affairs, LVIII, 2 (Summer 1985), 239-64: "A 1976 Senate investigation into these [Lockheed] payoffs revealed, almost inadvertently, that in May 1965, over the legal objections of Lockheed’s counsel, Lockheed commissions in Indonesia had been redirected to a new contract and company set up by the firm’s long-time local agent or middleman. Its internal memos at the time show no reasons for the change, but in a later memo the economic counselor of the U.S. Embassy in Jakarta is reported as saying that there were "some political considerations behind it." If this is true, it would suggest that in May 1965, five months before the coup, Lockheed had redirected its payoffs to a new political eminence, at the risk (as its assistant chief counsel pointed out) of being sued for default on its former contractual obligations. The Indonesian middleman, August Munir Dasaad, was `known to have assisted Sukarno financially since the 1930’s.‘ In 1965, however, Dasaad was building connections with the Suharto forces, via a family relative, General Alamsjah, who had served briefly under Suharto in 1960, after Suharto completed his term at SESKOAD. Via the new contract, Lockheed, Dasaad and Alamsjah were apparently hitching their wagons to Suharto’s rising star: ‘When the coup was made during which Suharto replaced Sukarno, Alamsjah, who controlled certain considerable funds, at once made these available to Suharto, which obviously earned him the gratitude of the new President. In due course he was appointed to a position of trust and confidence and today Alamsjah is, one might say, the second important man after the President.’"
21 A Senate amendment in 1964 to cut off all aid to Indonesia unconditionally was quietly killed in conference committee, on the misleading ground that the Foreign Assistance Act "requires the President to report fully and concurrently to both Houses of the Congress on any assistance furnished to Indonesia" (U.S. Cong., Senate, Report No. 88-1925, Foreign Assistance Act of 1964, p. 11). In fact the act’s requirement that the president report "to Congress" applied to eighteen other countries, but in the case of Indonesia he was to report to two Senate Committees and the Speaker of the House: Foreign Assistance Act, Section 620(j).
22 Tom J. Farer, Transnational Crime in the Americas: An Inter-American Dialogue Book (New York: Routledge, 1999), 65.
23 Ed Reid and Ovid Demaris, The Green Felt Jungle (New York: Pocket Books, 1964), 217-20. Levinson had fronted for Lansky at the Sands casino in Las Vegas.
24 Peter Dale Scott, Drugs, Oil, and War: The United States in Afghanistan, Colombia, and Indochina (Lanham, MD: Rowman & Littlefield, 2003), 7, 60-61, 198, 207; citing Penny Lernoux, In Banks We Trust (Garden City, NY: Anchor/Doubleday, 1984), 42-44, 84.
25 Naylor, Hot Money and the Politics of Debt, 22.
26 Block, Masters of Paradise, 51. Intra Bank also had a Bahamian branch, Intra Bahamas Trust Ltd.
27 Newsday, staff and editors of, The Heroin Trail (New York: Holt, Rinehart and Winston, 1974), 137 (Francisi); McCoy, The Politics of Heroin, 39 (Luciano). El-Khoury "used Luciano’s money to buy off Lebanese police and customs agents" (Alexander Cockburn and Jeffrey St. Clair, Whiteout: The CIA, Drugs, and the Press [London: Verso, 1998], 131).
28 McCoy, Politics of Heroin, 541.
29 James Mills, The Underground Empire: Where Crime and Government Embrace (New York: Dell, 1978), 70.
30 Scott and Marshall. Cocaine Politics (paperback edition), x-xi. Dayle made this statement during a videotaped teleconference, in the presence of Marshall and myself.
31 Wall Street Journal, April 18, 1980. Dalitz, Kleinman, and Tucker, all veterans of the gambling scene in Cleveland, later had a controlling interest in the Desert Inn casino in Las Vegas (Investigation of Organized Crime in Interstate Commerce: Hearings before the [Kefauver] Special Committee to Investigate Organized Crime in Interstate Commerce, U.S. Senate, 81st Cong., 2nd Sess. and 82nd Congress, 1st Sess., Part 10, US Government Printing Office, [Washington DC: 1950], pp. 907-926). Block’s and Weaver’s later and more detailed study claims that Dalitz did not have an account at Castle, but adds former Lansky associate Lou Rothkopf to the list of mob figures who did (Block and Weaver, All Is Clouded by Desire, 45).
32 Block, Masters of Paradise, 189.
33 Penny Lernoux, In Banks We Trust (Garden City, NY: Anchor/Doubleday, 1984; citing Wall Street Journal, May 23, 1977, February 17, 1981; also, Parapolitics, Spring 1981), 88: "Like Castle, Mercantile was a conduit for CIA money, and Price Waterhouse accountants were `under orders‘ to make sure `outsiders‘ did not have access to the books. If they probed around, said a CIA source, they ‘could unravel a trail to the intelligence community.’"
34 Block and Weaver, All Is Clouded by Desire, 40; cf. Block, Masters of Paradise, 188-91, where Kleinman is called "perhaps a hidden owner" of Castle.
35 Block, Masters of Paradise, 163; New York Times, September 1, 1989 ("part owner").
36 Block, Masters of Paradise, 164.
37 CIA Inspector General’s Report of 1967 on CIA-Mafia Plots to Assassinate Castro, pp. 15-16, NARA #151993.08.11.16:44:08:750007, pp. 3-4.
38 Memo of 5 September 1975 to DDO from CI Staff Chief George Kalaris, NARA #104-1010-10003, p. 2.
39Tom Mangold, Cold Warrior: James Jesus Angleton: The CIA’s Master Spy Hunter (New York: Touchstone/ Simon & Schuster, 1991), 314-15.
40 Douglas Valentine, "The French Connection Revisited: The CIA, Irving Brown, and Drug Smuggling as Political Warfare," Covert Action, http://www.covertaction.org/content/view/99/75/.
41 Paul Buhle, "Lovestone’s Thin Red Line," Nation, May 6, 1999, http://www.thenation.com/doc/19990524/buhle.
42 House Select Committee on Assassinations, Investigation of the Assassination of President John F. Kennedy, Appendix to Hearings, Volume IX (March 1978), 47.
43 Ed Reid, The Grim Reapers: The Anatomy of Organized Crime in America (New York: Bantam, 1969), 174.
44 Mangold, Cold Warrior, 329-30; cf. 305, 337. Other authors have written that Dulles and Angleton maintained a "second agency," or "agency-within-the Agency;" see e.g. Mark Aarons and John Loftus, Unholy Trinity (New York: St. Martin’s Press, 1991), 260.
45 Mangold, Cold Warrior, 105.
46 Memo of 4 November 1970 from John K. Greaney, Assistant General Counsel, CIA, NARA #104-10106-10374.
47 "United States of America, Appellee, v. Leonard Russo, et al., Defendants-Appellants"
48 Memo of 4 November 1970 from John K. Greaney, Assistant General Counsel, CIA, NARA #104-10106-10374. Robert Sam Anson once claimed that two of the defendants in these kickback trials, John Larocca and Gabriel Mannarino, were acquitted in 1971 when "one of the star witnesses turned out to be the local head of the CIA" (Robert Sam Anson, "They’ve Killed the President," [New York: Bantam, 1975], 296). Anson told me that this witness was Brod, but I have found no court record that Brod’s testimony was accepted into the court record.
49 Dan E. Moldea, The Hoffa Wars: Teamsters, Rebels, Politicians, and the Mob (New York: Paddington Press, 1978), 130-31.
50 Time, June 9, 1975, 14.
51 Church Committee, Testimony of John Scelso, 7 May 1976, 41-42, NARA #157-10014-10083, 45-46. Angleton’s response suggests that he may have believed what Hank Messick and others later charged: that Lansky had somehow obtained protection from the Bureau [Hank Messick, John Edgar Hoover (New York: David McKay Co., 1972], 229-31, etc).
52 William R. Corson, Susan B. Trento, Joseph J. Trento, Widows (New York: Crown, 1979), 71.
53 For details see Scott, War Conspiracy, 387; Peter Dale Scott, Deep Politics II: The New Revelations in U.S. Government Files, 1994-1995 (Ipswich, MA: Mary Ferrell Foundation Press, 2007), 30-33.
54 See Peter Dale Scott, Deep Politics II: The New Revelations in U.S. Government Files,1994-1999 (Ipswich, MA: Mary Ferrell Foundation Press, 2007), 17-18, 92; also Peter Dale Scott, "Oswald and the Hunt for Popov’s Mole," The Fourth Decade, III, 3 (March 1996), 3; www.maryferrell.org/mffweb/archive/viewer/showDoc.do?absPageId=519798.
55 Peter Dale Scott, Deep Politics II, 30-33.
56 See discussion in Peter Dale Scott, "The JFK Assassination and 9/11: the Designated Suspects in Both Cases," Global Research, July 5, 2008, http://www.globalresearch.ca/index.php?context=va&aid=9511.
57 J. Patrice McSherry, Predatory States: Operation Condor and Covert War in Latin America (Lanham, MD: Rowman & Littlefield, 2005), 139-75; John Dinges, The Condor Years: How Pinochet and His Allies Brought Terrorism to Three Continents (New York: New Press, 2004), 190-98, 248-50; Peter Kornbluh, The Pinochet File: A Declassified Dossier on Atrocity and Accountability.
58 McSherry, Predatory States, 95; citing White cable of October 13, 1978, foia.state.gov/documents/State/Chile3/000058FD.pdf (a URL inactive in 2008); also Diana Jean Schemo, "New Files Tie U.S. to Deaths of Latin Leftists in 1970s," New York Times, March 6, 2001.
59 "I can do no less, without producing a reaction in the U.S. which would lead to legislative restrictions. The speech is not aimed at Chile…My evaluation is that you are a victim of all left-wing groups around the world, and that your greatest sin was that you overthrew a government which was going communist" (Dinges, The Condor Years, 159-62); citing Department of State Bulletin 75 (July 5, 1976), 4 (public speech).
60 McSherry, Predatory States, 159.
61 McSherry, Predatory States, 161.
62 Los Angeles Times, May 7, 2008, http://articles.latimes.com/2008/may/07/nation/na-posada7.
63 Kevin Phillips, American Dynasty: Aristocracy, Fortune, and the Politics of Deceit in the House of Bush (New York: Viking, 2004), 280.
64 Joseph J. Trento, The Secret History of the CIA (New York: Forum/Prima/Random House, 2001), 436-37. In 1978 Trento himself was the recipient of a leak linking Wilson to Shackley.
65 Trento, The Secret History of the CIA, 395 (Helms), 344 (cadre).
66 Block, Masters of Paradise, 191.
67 Block, Masters of Paradise, 192: "The major Pritzker link to the Teamsters was crafted by Stanford Clinton, " a lawyer "who represented some of Chicago’s leading hoodlums" and also had a Castle account.
68 Block, Masters of Paradise, 195.
69 Block, Masters of Paradise, 171; cf. 32-33.
70 Block, Masters of Paradise, 172-73, 182.
71 Scott, The War Conspiracy, 46-47, 60, 64-68, 263, 278-79.
72 OSS officer and Corcoran friend Ernest Cuneo, quoted in David McKean, Peddling Influence: Thomas "Tommy the Cork" Corcoran and the Birth of Modern Lobbying (Hanover, NH: Steerforth, 2004), 286.
73 "Lawyers and Lobbyists." Fortune, February 1952, p. 142; quoted in Scott, The War Conspiracy, 47.
74 Joseph J. Trento, Prelude to Terror: The Rogue CIA and the Legacy of America’s Private Intelligence Network (New York: Carroll and Graf, 2005), 9.
75 Scott, The War Conspiracy, 278-79
76 Block, Masters of Paradise, 170.
77 McKean, Peddling Influence, 140-43; Scott, War Conspiracy, 64-65.
78 McKean, Peddling Influence, 149-50.
79 Bruce Cumings, The Origins of the Korean War, Vol II (Princeton: Princeton UP, 1990), 107, 153; Trento, Prelude to Terror, 9.
80 Oral History Interview with Arthur R. Ringwalt, June 5, 1974, Truman Library, http://www.trumanlibrary.org/oralhist/ringwalt.htm.
81 Bertil Lintner, Burma in Revolt: Opium and Insurgency Since 1948 (Chiang Mai: Silkworm Books, 1999), 192; Scott, Drugs, Oil, and War, 51, 187, 192-93, etc.
82 Daniel Fineman, A Special Relationship: The United States and Military Government in Thailand, 1947-1958 (Honolulu: University of Hawai’i Press, 1997), 214-15; cf. 206.
83 Penny Lernoux, In Banks We Trust (Garden City, NY: Anchor/Doubleday, 1984), 82-83.
84 Anthony Summers with Robbyn Swann, The Arrogance of Power: The Secret World of Richard Nixon (New York: Viking, 2000), 242.
85 Memo of 18 August 1976 to Chief, Security Analysis Group, NARA #104-10059-10013; also partially released as p. 6 of Meyer Lansky Security File, 1993.08.13.17:42:12:560059.
86 Memo of 18 August 1976 to Chief, Security Analysis Group, NARA #104-10059-10013; Reid, The Grim Reapers, 119-23.
87 Jeff Gerth, in Sid Blumenthal and Harvey Yazijian (eds.), Government by Gunplay: Assassination Conspiracy Theories from Dallas to Today (New York : New American Library, 1976), 138.
88 Summers with Swan, The Arrogance of Power, 242, 252; Jim Hougan, Spooks, 398. Cf. Denny Walsh, New York Times, January 21, 1974; Gerth, in.Government by Gunplay, 137-39.
89 Block, Masters of Paradise, 94-96; Summers with Swan, The Arrogance of Power, 244-45.
90 Summers with Swan, The Arrogance of Power, 244-45, 253-54.
91 Block, Masters of Paradise, 46, 101.
92 Inspector-General’s report on CIA Plots to Assassinate Fidel Castro, 29-30; quoted in Peter Dale Scott, Deep Politics II: The New Revelations in U.S. Government Files, 1994-1995 (Ipswich, MA: Mary Ferrell Foundation Press, 2007), 60.
93 San Francisco Chronicle, March 3, 1967, 41; quoted in Scott, Deep Politics II, 67.
94 Block, Masters of Paradise, 100-01.
95 Inspector-General’s report on CIA Plots to Assassinate Fidel Castro, 29-30; quoted in Peter Dale Scott, Deep Politics II, 59
96 Some of the documents in this file, including the FBI Report quoted in this paragraph, are incorporated into the Inspector-General’s report on CIA Plots to Assassinate Fidel Castro, 29-30; quoted in Peter Dale Scott, Deep Politics II, 59. In addition, the CIA’s report on its interest in Resorts International, quoted above, carries the handwritten notation "for file/ Sam GIANCANA/ not mentioned." The allusion to Giancana makes sense in the context of the CIA-mafia plots, but as far as I know not otherwise.
97 "MOSS, Edward K. #172 646," CIA Memo of 14 May 1973, in Meyer Lansky Security File, p. 9, NARA #1993.08.13.17:42:12:560059. The CIA used the misspelling "Verona" which occurred just once in the FBI source document, and ignored the correct spelling "Varona" which was abundantly used as well. Note below their use of "Cellino" (rather than "Cellini") and "Lenzieri" (for Lanzieri) in related CIA documents. By this device both the FBI and CIA could avoid responding to document searches for the correct name. For example in the 1940s the CIA told the French that they had no documents on the SS war criminal Klaus Barbie, whom they were harboring. The American documents referred to him systematically as "Barbier."
98 "MOSS, Edward K. #172 646," CIA Memo of 14 May 1973 from Jerry G. Brown for Deputy Chief, Security Research Staff, NARA #1993.08.13,17:42:12:560059.
99 "Moss, Edward K. #172 646," CIA Memo of 19 April 1967 [at the time of the I-G Report mentioning Moss], NARA #104-10122-10006; Inspector General‘ Report on CIA-Mafia Plots to Assassinate Fidel Castro (henceforth I-G Report), NARA # 104-10213-10101, p. 38. Cf. memo of 7 November 1962 in CIA’s Edward K. Moss folder, p. 26, NARA #1994.05.03.10:54:53:780005.
100 "Manuel Antonio Varona," FBI Memorandum of January 16, 1961 to A. H. Belmont, 105-76826-20; NARA #124-90055-10139.
101 "Manuel Antonio Varona," FBI Memorandum of January 16, 1961 to A. H. Belmont, p. 2, 105-76826-20; NARA #124-90055-10139. Cf. "Moss, Edward K. #172 646," CIA Memo of 14 May 1973, in Meyer Lansky Security File, p. 9, NARA #1993.08.13.17:42:12:560059; CIA letter of 16 December 1960 to FBI, FBI file 105-76826-18; NARA #124-90055-10133.
102 CIA letter of 16 December 1960 to Director, FBI, FBI File 105-76826-18; NARA #124-90055-10133. Apparently no copy of this letter has been released from CIA files.
103 "Manuel Antonio Varona," FBI Memorandum of January 16, 1961 to A. H. Belmont, p. 2, 105-76826-20; NARA #124-90055-10139.
104 Peter Dale Scott, Deep Politics and the Death of JFK (Berkeley: University of California Press, 1998), 145; cf. 238-40.
105 "Moss, Edward K. #172646," CIA Memo of 28 November 1962, NARA #1994.05.03.10:54:53:780005.
106 I-G Report, p. 38.
107 "Manuel Antonio Varona," FBI Memorandum of January 16, 1961 to A. H. Belmont," p. 2, 105-76826-20; NARA #124-90055-10139.
108 FBI Memorandum to Attorney General, January 23, 1961, NARA # 124-90055-10140.
109 Anthony Summers with Robbyn Swan, The Arrogance of Power: The Secret World of Richard Nixon (New York: Viking, 2000), 194; citing I-G Report.
110 Don Bohning, The Castro Obsession: U.S. Covert Operations Against Cuba (Washington: Potomac Books, 2005), 181.
111 Summers with Swan, Arrogance of Power, 283 ($1 million); Robert Baer, Sleeping with the Devil (New York: Crown, 2003), 43 (briefcase); Kessler, The Richest Man in the World, 170 ("several million"); Renata Adler, "Searching for the Real Nixon Scandal," Atlantic (December 1976), 76–84 ($200 million). Khashoggi admitted publicly to a gift of $43,000 to the Nixon campaign in 1972.
112 Kessler, Richest Man in the World, 170.
113 Kessler, Richest Man in the World, 142, 181.
114 It has been alleged that at the Sands in 1960 the FBI saw the casino’s courtesy prostitutes "running in and out of" Senator Jack Kennedy’s suite, and a million dollars was allegedly given to Kennedy in a brown leather satchel by the hotel’s owners (John William Tuohy, "The Sands,"AmericanMafia, August 2001, http://www.americanmafia.com/Feature_Articles_155.html).
115 Omar Garrison, Howard Hughes in Las Vegas (New York: Dell, 1970), 48-49, 56, 58; Peter Dale Scott, Crime and Cover-Up: The CIA, the Mafia, and the Dallas-Watergate Connection (Palo Alto, CA: Ramparts Press, 1977), 29.
116 Kessler, Richest Man in the World, 149-50.
117 Sally Denton and Roger Morris, The Money and the Power: The Making of Las Vegas and Its Hold on America, 1947-2000 (New York: Knopf, 2001), Prologue. Sally Denton later enlarged on the details: "When it became clear 70 United States, American, banks were involved, had the complicity, knew about every single one of the wire-transfers and transactions — banks including Chemical Bank, Bank of New York, CitiBank, American Express –… President Clinton and Madeline Albright stepped in and intervened and stopped the entire investigation and closed all of the cases" (Discussion at Taos Community Auditorium on October 12, 2002; http://www.taosplaza.com/taosplaza/2003/pages/tmff_drugs.php).
118 Gigi Mahon, The Company That Bought the Boardwalk (New York: Random House, 1980), 136.
119 Kessler, Richest Man in the World, 275–78. A friend of Khashoggi’s, Larry Kolb, reports that Khashoggi himself essentially corroborated the story that Khashoggi and John Kennedy had a friendship in the 1950s that "evolved primarily out of whoring together" (Larry J. Kolb, Overworld: The Life and Times of a Reluctant Spy [New York: Riverhead/Penguin, 2004], 236). The woman who destroyed the presidential aspirations of Senator Gary Hart in 1987 was one of Khashoggi’s many girls.
120 Kessler, The Richest Man, 238, 240.
121 Prince Turki bin Faisal gave Georgetown University alumni a frank account of the Safari Club’s formation in response to post-Watergate restrictions: "In 1976, after the Watergate matters took place here, your intelligence community was literally tied up by Congress. It could not do anything. It could not send spies, it could not write reports, and it could not pay money. In order to compensate for that, a group of countries got together in the hope of fighting Communism and established what was called the Safari Club. The Safari Club included France, Egypt, Saudi Arabia, Morocco, and Iran."
122 Kolb, Overworld, 238, 242–43.
123 Sally Denton and Roger Morris, The Money and the Power: The Making of Las Vegas and Its Hold on America, 1947-2000 (New York: Knopf, 2001), 72; citing laudatory article on Greenspun in the Jerusalem Post, July 1993.
124 Investigative reporter Jim Hougan reports the incredulity of congressional investigators that Lockheed was the only large corporation not to have made a contribution to Nixon’s 1972 election campaign (Hougan, Spooks: The Haunting of America—The Private Use of Secret Agents [New York: William Morrow, 1978], 457–58).
125 Drinkhall, Wall Street Journal, April 18, 1980. Drinkhall also reported that "Helliwell reputedly was one of the paymasters for the ill-fated Bay of Pigs invasion in 1961," a claim repeated in virtually every book dealing with Helliwell since that time (except my own). I have looked at dozens if not hundreds of CIA Bay of Pigs documents, many of them concerning financial payments to anti-Castro individuals and groups, and I have never seen any document involving either Helliwell or an unidentified cryptonym.
126 Pete Brewton, The Mafia, CIA and George Bush (1992), 296-97
127 Block and Weaver, All Is Clouded by Desire, 36-37; citing Robin Winks, Cloak & Gown: Scholars in the Secret War, 1939-1961 (New York: William Morrow, 1987), 377-78 (X-2 in Vienna).
128 Peter Truell and Larry Gurwin, False Profits: The Inside Story of BCCI, the World’s Most Corrupt Financial Empire (Boston: Houghton Mifflin, 1992), 384 ("ties").
129 Block and Weaver, All Is Clouded by Desire, 86. Abbas Kassimali Gokal, whom British prosecutors accused of stealing $1.3 billion from BCCI, was a board member of the Inter Maritime Bank from 1978 through 1982. In 1997 Gokal was sentenced to 13 years by a UK court for his role in the BCCI fraud.
130 Truell and Gurwin, False Profits, 384. Truell and Gurwin claim that Hartmann went from Intermaritime to BCCI; the Kerry-Brown BCCI Report claims that Rappaport recruited Hartmann from BCCI/BCP for his own bank.
131 Block and Weaver, All Is Clouded by Desire, 85.
132 U.S. Congress. Senate, 102nd Cong., 2nd Sess. The BCCI Affair: A Report to the Senate Committee on Foreign Relations from Senator John Kerry, Chairman, and from Senator Hank Brown, Ranking Member, Subcommittee on Terrorism, Narcotics, and International Operations,… September 30, 1992, 1-2. Cited henceforth as the Kerry-Brown Report, 69.
133 Jane Hunter "Covert Operations: The Human Factor," The Link , August 1992, Volume 25, Issue 3, 8, http://www.ameu.org/page.asp?iid=139&aid=183&pg=8.
134 Leonard Slater, The Pledge (New York: Pocket Books, 1971), 175.
135 Sindona had links to the Italian intelligence service SISMI, to drug traffickers like Rosario Gambino, and to the Nixon Administration. See Jonathan Marshall, Peter Dale Scott, and Jane Hunter, The Iran-Contra Connection: Secret Teams and Covert Operations in the Reagan Era (Boston: South End Press, 1987), 71, 73; Lernoux, In Banks We Trust, 178-79, 193-95, etc.
136 Block and Weaver, All Is Clouded by Desire, 36; citing Robin W. Winks, Cloak & Gown: Scholars in the Secret War, 1939-1961 (New York: William Morrow, 1987), 377-78.
137 Smith, OSS, 165.
138 Operation Safehaven began as a U.S. Treasury effort to trace the movements of stolen Nazi gold, and possibly implicate Nazi collaborators in America. Taken over by OSS X-2, it recuperated SS assets that were used instead to support former SS agents.
139 Anthony Cave Brown, The Secret War Report of the OSS / edited by Anthony Cave Brown (New York: Berkeley, 1976), 565-66.
140 Ronald Kessler, The Richest Man in the World (New York: Warner Books, 1986), 162, 300; Jonathan Beaty and S.C. Gwynne, The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI (New York: Random House, 1993), 54, 80, 263-64.
141 Truell and Gurwin, False Profits, 83-87.
142 Kerry-Brown Report.
143 Beaty and Gwynn, 357.
144 Truell and Gurwin, False Profits, 373-77.
145 Olmsted’s intelligence connections dated back to wartime service on the staff of General Albert Wedemeyer in China, where he was in charge of clandestine operations and in that capacity worked with OSS. He was thus a senior figure in what I am tempted to call the OSS China connection, which united so many of the people who were prominent in Helliwell’s post-war global drug connection. We have already mentioned Helliwell himself, who was head of the Special Intelligence branch of OSS in Kunming before he created Sea Supply Corp in Bangkok. Willis Bird was the deputy chief of OSS China and then became the most important figure in Sea Supply after Helliwell’s return in 1951 from Bangkok to America. C.V Starr, later represented by Corcoran, opened his insurance empire in China to the creation of an OSS network outside the OSS-KMT cooperation agreement. See Richard Harris Smith, OSS: The Secret History of America’s First Central Intelligence Agency (Berkeley: University of California Press, 1972), 267 (Starr), 273 (Bird), 326 (Helliwell). But this is not the whole picture. Elsewhere I have dealt with the post-war activities of other members of the small OSS Detachment 202 under Paul Helliwell in Kunming: E. Howard Hunt, Ray Cline, Lou Conein, John Singlaub, and Mitchell WerBell. All of these men went on to develop post-war connections for the CIA with drug-traffickers: Hunt in Mexico, Cline in Taiwan, Conein in Vietnam, WerBell in Laos, and Singlaub with the World Anti-Communist League which Hunt and Cline had helped to create (Scott, Drugs, Oil, and War, 20, 207).
146 Block and Weaver, All Is Clouded by Desire, 41; cf. Block, Masters of Paradise, 191.
147 Block and Weaver, All Is Clouded by Desire, 41-42; Truell and Gurwin, False Profits, 40-43, etc.
148 Truell and Gurwin, False Profits, 123-24; cf. 128-29: Expanding over seven pages on these and many other intelligence connections, they asked whether the bank’s illegal acquisition of an American bank holding company, First American Bankshares, was not in fact serving the purposes of U.S. intelligence:
"No one can deny that virtually every major character in the takeover was connected in one way or another to U.S. intelligence: Olmsted who controlled the company [First American] for years; Middendorf, who headed the group that acquired it from him; Abedi, who arranged for clients of BCCI to buy the company from Middendorf’s group; [Mohammed Rahim Motaghi] Irvani,, the chairman of one of the dummy companies set up to carry out the acquisition; [his partner Richard] Helms, who advised Irvani; [former Saudi intelligence chief Kamal] Adham, the lead investor in Abedi’s group; [Clark] Clifford, who steered the deal through the regulatory maze and then became the chairman of the company….Can all this be a coincidence? Or is it possible that First American was affiliated with U.S. intelligence all along and that it was simply passed from one group of CIA associates to another, and then another? No proof has emerged that this is what happened, but it is certainly not a far-fetched theory."
149 Jonathan Kwitny, The Crimes of Patriots (New York: Norton, 1987), 96.
150 Kwitny, The Crimes of Patriots, 162. BCCI also used Price Waterhouse as its auditor. In addition, BCCI and Nugan Hand used the same law firm and registered agent (Bruce Campbell & Company) in the Cayman Islands (Truell and Gurwin, False Profits, 125).
151 Kwitny, The Crimes of Patriots, 243.
152 Kwitny, The Crimes of Patriots, 334-35.
153 Trento, Prelude to Terror, 313-14.
154 Kwitny, The Crimes of Patriots, 207, 208.
155 James A. Nathan, "Dateline Australia: America’s Foreign Watergate?" Foreign Policy (Winter 1982-83), 183; quoted in Jonathan Marshall, Peter Dale Scott, and Jane Hunter, The Iran-Contra Connection: Secret Teams and Covert Operations in the Reagan Era (Boston: South End Press, 1987), 38.
156 Scott, The Road to 9/11, 126-27.
157 Thomas Goltz, Azerbaijan Diary: A Rogue Reporter’s Adventures in an Oil-Rich, War-Torn, Post-Soviet Republic (Armonk, NY: M. E. Sharpe, 1999), 272-75. Richard Secord was allegedly attempting also to sell Israeli arms, with the assistance of Israeli agent David Kimche, another associate of Oliver North. The mujahideen were recruited in Afghanistan by Gulbuddin Hekmatyar, the leading recipient of CIA assistance in Afghanistan in the 1980s, and most recently a leader of the al Qaeda-Taliban resistance to the U.S. and its client there, Hamid Karzai. See Scott, Drugs, Oil, and War, 7, 8, 20.
158 Loretta Napoleoni, Terror Incorporated: Tracing the Dollars Behind the Terror Networks (New York: Seven Stories Press, 2005), 90-97: "[IMU leader] Namangiani’s networks in Tajikistan and in Central Asia were used to smuggle opium from Afghanistan. It was partly thanks to Namangiani’s contacts in Chechnya that heroin reached Europe" (91)…. "It was thanks to the mediation of Chechen criminal groups that the KLA and the Albanian mafia managed to gain control of the transit of heroin in the Balkans" (96). Napoleoni does not mention Azerbaijan, which however lies between Uzbekistan and Chechnya.
159 "KLA Funding Tied To Heroin Profits," Washington Times, 5/3/99.
160 Daniel Ellsberg with Kris Welch, KPFA, 8/26/06, http://wotisitgood4.blogspot.com/2006/10/ellsberg-hastert-got-suitcases-of-al.html.
161 Vanity Fair, September 2005. According to the ATC web site, "As one of the leading business associations in the United States, the American-Turkish Council (ATC) is dedicated to effectively strengthening U.S.-Turkish relations through the promotion of commercial, defense, technology, and cultural relations. Its diverse membership includes Fortune 500, U.S. and Turkish companies, multinationals, nonprofit organizations, and individuals with an interest in U.S.-Turkish relations." It is thus comparable to the American Security Council, whose activities in 1963 are discussed in Scott, Deep Politics, e.g. 292.
Edmonds has been partially corroborated by Huseyin Baybasin, another Turkish heroin kingpin now in jail in Holland, in his book Trial by Fire: "I handled the drugs which came through the channel of the Turkish Consulate in England." But as he adds: "I was with the Mafia but I was carrying this out with the same Mafia group in which the rulers of Turkey were part." Baybasin claimed he was assisted by Turkish officers working for NATO in Belgium ("The Susurluk Legacy," By Adrian Gatton, Druglink Magazine, Nov/Dec 2006, http://adriangatton.com/archive/1990_01_01_archive.html).
162 Marshall, Drug Wars, 55; citing Tad Szulc, "The Money Changer," New Republic, April 10, 1976, 10-11.
163 See Scott, The War Conspiracy.
164 Peter Dale Scott, "The United States and the Overthrow of Sukarno, 1965-1967" Pacific Affairs (Vancouver, B.C.) 58.2 (Summer 1985), pp. 239-64.
165 AMPO (Japan), January 1974, 44 (Indonesia); David E. Kaplan and Alec Dubro, Yakuza [New York: Macmillan, 1986], 90 (Deak); Marshall, Drug Wars, 54-55 (Katayama, Kodama). Kodama and Sasakawa were both arrested by the U.S. for war crimes but not prosecuted. In 1941 Kodama had plotted the assassination of Japan’s Prime Minister Konoye by dynamite, to block his attempted peace negotiations with the U.S. Kodama then made a fortune in Shanghai during World War II, allegedly in part through his control of the drug traffic in conjunction with the kempeitai. Kodama and Sasakawa both became staunch supporters of the Asian People’s Anti-Communist League,that as we have seen has had persistent connections to the post-war Asian drug traffic.
166 Beaty and Gwynn, The Outlaw Bank, 48. [See Clarification of this footnote, published 2/21/2009.
167 Seymour Hersh, The Price of Power: Kissinger in the White House (New York: Summit, 1983), 279, 290.
168 Dinges, The Condor Years,, 190-98.
169 Robert Parry, Secrecy & Privilege: Rise of the Bush Dynasty from Watergate to Iraq (Arlington, VA: Media Consortium, 2004), 112-38, etc.; Scott, Road to 9/11, 99-107. According to Parry, Michael Ledeen was also part of this effort.
170 "Turkey’s pivotal role in the international drug trade," Le Monde diplomatique (July 1998), http://mondediplo.com/1998/07/05turkey. Cf. Daniele Ganser, NATO’s Secret Armies: Operation Gladio and Terrorism in Western Europe (London: Frank Cass Publishers, 2005), 237-38. Author Claire Sterling attempted to blame the KGB for the assassination attempt, and her view that the KGB was the heart of what she called a global "terror network" was forced on CIA analysts by William Casey and Robert Gates (see final footnote below).
171 Iran-Contra Affair, Report of the Congressional Committees Investigating the Iran-Contra Affair, 100th Congress. 1st Session, H. Rept No 100-433, S. Rept No. 100-216, pp. 164, 166, 228, etc.
172 Block and Weaver, All Is Clouded by Desire, 95-116, etc. Burt Kanter, the co-founder of Castle Bank, was recurringly involved in Rappaport’s IMB-BONY dealings (Block and Weaver, 100, 102, 193, 105, 113).
173 Scott, Road to 9/11, 163-65, 351; Thomas Goltz, Azerbaijan Diary, 272-75.
174 Scott, Road to 9/11, 167-68, citing Michel Chossudovsky, "Macedonia: Washington’s Military-Intelligence Ploy," Transnational Foundation for Peace and Future Research, http://www.transnational.org/SAJT/forum/meet/2001/Chossudov_WashingtPloy.html.
175 Lernoux, In Banks We Trust, 72; cf. Mother Jones, March 1984.
176 Daniel Fineman, A Special Relationship: The United States and Military Government in Thailand, 1947-1958 (Honolulu: University of Hawai’i Press, 1997), 179-80; cf. FRUS, 1952-1954, 12, 1, 689-90.
177 Trento, The Secret History of the CIA, 410.
178 Report of the Congressional Committees Investigating the Iran-Contra Affair, 100th Congress. 1st Session, H. Rept No 100-433, S. Rept No. 100-216, p. 164.
179 Trento, Prelude to Terror, 283-84.
180 Scott, Road to 9/11, 52-53.
181 See Rowan Scarborough, Sabotage: America’s Enemies Within the CIA (Washington: Regnery, 2007); Kenneth R. Timmerman, Shadow Warriors: The Untold Story of Traitors, Saboteurs, and the Party of Surrender (New York: Crown/ Random House, 2007),
182 "It works like this: Blackwater, for example, will win a U.S. government contract; it will then subcontract with itself–that is, with Greystone–to do the job. From there, Greystone looks to its network of international affiliates, firms like Pizarro’s Grupo Tactico in Chile or ID Systems in Colombia, which maintain informal relationships with what are known in the trade as "briefcase recruiters"–individuals with connections to the local paramilitary scene" (Bruce Falconer and Daniel Schulman, "Blackwater’s world of warcraft," Mother Jones, March-April 2008). Cf. Jeremy Scahill, Blackwater: The Rise of the World’s Most Powerful Mercenary Army (New York: Nation Books, 2008).
183 This false ideology was enforced even inside the CIA. Author Claire Sterling wrote a book called The Terror Network, claiming "that all major terrorist groups were controlled by the Soviet Union." The book, with little credibility today, was warmly endorsed by then Secretary of State Alexander Haig, who passed it to William Casey, who presented its thesis to the Senate Select Committee on Intelligence. Casey also assigned top CIA terrorist analysts and Soviet experts to prepare a special national intelligence estimate, or SNIE, based on Sterling’s book. When the experts reported there was no merit to Sterling’s claims, Casey’s Deputy Director of Intelligence, Robert Gates, had their negative assessment rewritten and reversed by new low-level personnel who had just arrived in the Agency. See Mark Perry, Eclipse: The Last Days of the CIA (New York: William Morrow, 1992), 47-49, 319-320. Today Robert Gates is America’s Secretary of Defense.