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713Jan 1969 to Aug 1974 The Nixon years, 2nd ed. part 8

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  • dick.mcmanus
    Oct 24, 2013
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      Khashoggi’s function as an agent of influence in the Middle East and elsewhere after the United States, by the Corrupt Federal Practices Act of 1978, outlawed direct payments by US corporations to foreign individuals.


      BCCI also inherited and vastly expanded Khashoggi’s use of money to influence and corrupt American politicians.  BCCI’s Pakistani president, Agha Hasan Abedi, rescued Bert Lance from bankruptcy.

      A Senate report on BCCI (1992) concluded that BCCI's systematically relied on relationships with, and as necessary, payments to, prominent political figures in most of the 73 countries in which BCCI operated.  The result was that BCCI had relationships that ranged from the questionable, to the improper, to the fully corrupt with officials from countries all over the world.  And from two well-researched books by journalists from Time and the Wall Street Journal, we learn that among later highly-placed recipients of largesse from BCCI, its owners, and its affiliates, were Ronald Reagan’s Treasury Secretary James Baker, who declined to investigate BCCI; and Democratic Senator Joseph Biden and Republican Senator Orrin Hatch, the ranking members of the Senate Judiciary Committee, which declined to investigate BCCI.


      Sen. John Kerry produced a report that declared, "It is clear that individuals who provided support for the Contras were involved in drug trafficking...and elements of the Contras themselves knowingly received financial and material assistance from drug traffickers." And, the report indicated, the CIA had been aware of this. Kerry's findings provoked little reaction in the media and official Washington. Almost a decade later, the CIA inspector general would release a study confirming these conclusions. The Contra probe led Kerry into other muck pits. He discovered that the US government had long sat on information regarding the crimes of Manuel Noriega, the drugged-up dictator of Panama. The Noriega investigation drew Kerry to the Bank of Credit and Commerce International, a $23 billion institution used by money launderers, arms merchants, drug dealers, terrorists and spy services, including the CIA. Good work, Democratic senators sarcastically told him, investigating a bank that maintained relationships with prominent Democrats including Jimmy Carter, Andrew Young and Clark Clifford. The first President Bush openly attacked Kerry, who publicly accused the White House of trying to dig up dirt on him. In 1992 his subcommittee issued a report that assailed the CIA, the Justice Department and US banking regulators for having "failed to recognize and contain the international bank fraud of BCCI."  http://www.thenation.com/section/Ted-Kennedy?page=10


      But Barry is not the only link between the drug banks of Helliwell and BCCI. A more central figure is BG George Olmsted, the head of the Washington bank holding company known as the International Bank. In March 1973 Olmsted had the International Bank (which "had a reputation as a CIA bank") buy 66 percent of the capital stock of the failing Mercantile Bank in the Bahamas (Castle’s predecessor), even though "International’s officers knew the actual state of Mercantile’s financial health." Starting in 1977, International started to sell its stock in Financial General Bankshares (later known as First American), a major American bank holding company, to BCCI front men, who later took over First American for BCCI.


      The most common explanation is that the CIA not only used the bank, but had helped develop it. Journalists Peter Truell and Larry Gurwin, the authors of the definitive book on BCCI, speculated that the CIA.s relationship with its founder, Agha Hasan Abedi, might have gone back to before BCCI.s founding in 1972. They observed also that BCCI was only the latest in an overlapping series of money-laundering banks that did services for the CIA, Deak & Company, Castle Bank & Trust, and Nugan Hand.


      Another drug-linked bank was the Australian Nugan Hand Bank.  After its spectacular collapse in 1980, Australian investigators concluded that Nugan Hand had been involved in the financing of major drug deals, as well as the laundering of profits: two official investigations "placed Nugan Hand in the critical role of surreptitiously transferring drug income overseas, where it obviously could be reinvested in more illegal drugs."  Nugan Hand’s representative there, Neil Evans has said he was present when Michael Hand and Ron Pulger-Frame, the former Deak & Company courier who went to work at Nugan Hand, discussed the shipment of CIA money to the Middle East, Saudi Arabia, and Panama. Evans has said Nugan Hand moved $50 to $60 million at a time for the CIA, and also that Nugan Hand was involved in Third World arms deals.


      Evans also told Australian television that the millions he handled were "garnered from the drugs transiting the area. The bank, he put it starkly, was a (money)laundry for Meo [Hmong] tribesmen and other poppy growers."


      All of the major deep events in recent American history can be linked to this global drug connection:


      -- The first U.S. postwar presence in East Asia was established in conjunction with the drug-financed KMT in Taiwan.


      -- The U.S. presence in Southeast Asia began with Sea Supply’s support for KMT drug traffickers in East Burma, then expanded in the mid-fifties with the drug-financed PARU force into Laos, while the CIA secured Saigon by controlling drug distribution there.


      -- The interlocking finance company Deak & Company, founded by OSS veteran Nicholas Deak, "was reportedly used by the CIA to finance covert operations, including the 1953 overthrow of democratically elected Iranian Prime Minister Mohammed Mossadeq."


      -- The 1954 overthrow of democratically elected Guatemalan President Jacobo Arbenz was partly achieved with the support of Nicaraguan dictator Anastasio Somoza, a major figure in Lansky’s arms pipeline to Israel in the 1940s, and whose Guardia Nacional was deeply involved in Caribbean drug trafficking thereafter.


      --- The introduction of CIA covert forces in Laos in 1960, which eventually grew into a drug-financed irregular army of tens of thousands, was achieved with a force that grew out of the Sea Supply operation in Thailand. The CIA’s private war in Laos.


      -- The overthrow of democratically elected Indonesian President Sukarno in 1965 was achieved in part by covert assistance through Lockheed Corporation payoffs, and in part by the intervention of Sasakawa Ryoichi, a CIA agent of influence, along with his friend Kodama Yoshio, with the yakuza in Japan.  Sasakawa and Kodama were also recipients of Lockheed payoffs facilitated partly by Deak & Company, and partly on the scene by Shig Katayama, whose ID Corp. in the Cayman Islands conducted mysterious business transactions with Helliwell’s Castle Bank.


      -- BCCI provided the initial infrastructure for the CIA intervention in Afghanistan in 1979, and the ensuing alliance with the major drug trafficker Gulbeddin Hekmatyar. Pakistan’s President Zia arranged for Zbigniew Brzezinski, Carter’s National Security Adviser, to work with Lt.-Gen. Fazle Haq; while a BCCI informant told US authorities that Fazle Haq was "heavily engaged in narcotics trafficking and moving the heroin money through the [BCCI] bank." Hekmatyar in the next decade received more CIA aid than any other CIA asset before or since.


      -- In 1970, a CIA officer with the pseudonym Henry J. Sloman, who was also "a high-risk smuggler directly linked to the Mafia," was dispatched to Chile, where he became involved with the right-wing plotting to assassinate General René Schneider, commander-in-chief of the Chilean Army.


      (Source: Deep Events and the CIA's Global Drug Connection by Peter Dale Scott, August 17, 2008    http://u2r2h-documents.blogspot.com/2008/09/thai-money-operation-condor.html#ixzz1d06q0VHy



      US government cover-up of the fact that US Vietnam POW/MIAs were left behind in Southeast Asia and this cover-up is linked to trafficking in drugs and guns by the CIA, (or the shadow CIA) organizations with ties to the US intelligence and military. A great deal of pressure was placed on 60 minutes TV news executive and others to keep this story from coming to the attention of the American public. The reporters of this story had alleged that nerve agent (chemical weapons) were used in the extraction of behind the enemy lines teams with helicopters.  Nerve agent was dropped on enemy troop chasing/pursuing these special forces covert American (long range surveillance/ sniper teams) soldiers to aid in their rescue/retreat from the enemy. (Source: Kiss the Boys Goodbye, by Monika and Bill Stevenson).



       In the 1970s, a CIA's handbook/manual on interrogation (using the codeword for the CIA “KUBARK”  in the title)  that had been used to teach torture to South American death-squads type soldiers was made public. This manual describes several techniques to "disrupt the prisoner's sense of chronological order...Some interrogates can be regressed by persistent manipulation of time by retarding and advancing clocks and serving meals at odd times....Day and night are jumbled." (leaving the lights on all the time).  The 128-page classified secret manual on the “interrogation of resistant sources” (people being interrogated) is/was heavily based on the research commissioned by MKultra.   The manual includes a lengthy section on sensory deprivation that referred to “a number of experiments done at McGill University.”  What these experiments showed was that the “deprivation of stimuli induces regression” in the experimental subjects so that during interrogation people would view the interrogator as a father-figure.” (pgs. 39- 40, The Shock Doctrine by Naomi Kline)


        A historian at the University of Wisconsin, Alfred W. McCoy, documented the evolution of torture techniques since the Inquisition in his book A Question of Torture:   CIA Interrogation from the Cold War to the War on Terror describes the KUBARK manual’s formula for sensory deprivation followed by sensory overload as the “first real revolution in the science of Pain” (fear).  “KUBARK” was a code word indicating a message address for the CIA, headquarters that is/was used on teletype messages.  


      The manual taught, certain patterns—all designed to induce, deepen and sustain shock.  The manual instructs that prisoners should be captured in the most jarring and disorientating way possible, late at night or in early-morning raids. They are immediately hooded or blindfolded, stripped and beaten, then subjected to some form of sensory deprivation.  And from Guatemala to Honduras, Vietnam to Iran, the Philippines to Chile, the use of electroshock was ubiquitous. (p. 41)


      In 1966, the CIA sent three psychiatrists to Saigon, Vietnam, armed with a Page-Russell shock machine.  According to McCoy, “in effect, they were testing, under field conditions, whether “the ‘de-patterning’ techniques could actually alter human behavior.”  (p. 41)


      In 1988, The New York Times ran a investigative report into U.S. involvement in torture and assassinations in Honduras.  It told the story of how 25 interrogators with Honduras’s brutal Battalion 3-16, were taken to Texas and trained by the CIA.  “They were taught psychological methods—to study the fears and weaknesses of a prisoner.  Make him stand up (forced standing) don’t let him sleep, keep him naked and isolated, put rats and cockroaches in his cell, give him bad food, serve him dead animals, throw cold water on him, change the temperature.”   The NY Times failed to mention the use of electro shock.  (p.38,       The Shock Doctrine by Naomi Kline)  




      In the late 1950: Cord Meyer, joined the CIA and begins working in its International Relations Division of which he is soon put in charge. The express purpose of this division is to covertly finance, infiltrate, and encourage noncommunist liberal-left movements and institutions, such as labor unions, creative-academic societies, and student groups. He was the in charge of operations Mockingbird from 1962 till 1973. 


      From 1954 until 1962 Meyer was head of the CIA's international organizations division. A number of new anti-Communist organizations soon came into existence and established cells throughout the Far East.  One of these was the religious cult of the Moonies, founded by the South Korean Sun Myung Moon, with help from the CIA and its South Korean stepchild, the KCIA. Another was the Asian Peoples' Anti-Communist League (APACL), founded by South Korea's Syngman Rhee, Taiwan's Chiang Kai-shek, and the CIA. Kodama's old friend Sasakawa Ryiochi became the champion of the Moonies in Japan, and one of the prime movers behind the Japanese branch of APACL.


       In 1970, Sasakawa organized the World Anti-Communist League as the successor to APACL. According to one version, the Reverend Moon and Sasakawa jawboned with prominent Japanese

      rightists at one of Sasakawa's speedboat racing courses at the foot of Mount Fuji and laid their plans to spread the League worldwide. During its early years, WACL was widely reported to have been financed largely from Sasakawa's huge fortune.


      Among other covert operations, Helliwell's black-money channels were used to underwrite Lansdale's anti-Huk campaign in the Philippines, the election of President Magsaysay, and subsequent Filipino political contests. From the Philippines, it was used to pay the Indonesians fighting Sukarno. When America became entangled in Vietnam, Helliwell's financial magic was used to keep the Saigon generals happy and to set up overseas accounts for Laotian

      princelings and druglords.


      October 12, 1964: Mary Meyer is shot to death, execution-style, at 12:45 p.m., on a park towpath by the Georgetown Canal in Washington, D.C.  She was a mistress to Pres. Kennedy and it is alleged she got LSD from Timothy Leary and used it with JFK.  Just before Cord Meyer died on March 13, 2001, when questioned about who the thought killed Mary Meyer, he said, “ Who had committed such a heinous crime? "The same sons of bitches," he hissed, "that killed John F. Kennedy.”


       Ben Bradlee was Cord Meyer's brother-in-law, editor of the Washington Post. CIA counterintelligence chief, James Angleton confiscates and later burns the diary in which Mary has recorded her liaisons with JFK.


      In 2007 the son of former CIA agent and Watergate figure E. Howard Hunt came forward with a tape recordings and other documentation in which his father, on his death bed, claimed Meyer was one of the people who ran the CIA plot to kill Pres. Kennedy.







      Back to …The War Against Developmentism -- the Milten Friedman’s school of unabashed laissez-faire capitalism


      History of Congressional oversight of the CIA prior to Watergate and leading up to the development of the Economic Hit-Man Operation

      From beginning of the CIA, they adopted the policy that it would give the four Congressional committees any intelligence reports they might seek and would respond to their requests for briefings, however few requests were received. The committees had no place to store intelligence information, and therefore nothing could be left with them. Members or staff who wanted to read intelligence analysis had to do so by having it brought to them or by visiting the CIA. The committees employed small staffs during this period (typically five to seven professionals to serve a full committee and its subcommittees), and not all of these staffers had the required security clearances were to have access to intelligence.

      CIA's formal appearances before "its committees" were relatively infrequent. One of the CIA officials involved in this period recalled, "[In] the early years, we practically had to beg them to hold hearings. Years would go by sometimes without any hearing at all being held on the Agency's budget."

      The "CIA committees" would hold occasional oversight hearings as well as receive briefings on world events. For example, each of the four committees held hearings in 1950 on CIA's performance in predicting the outbreak of the Korean War.  The amount of sensitive information imparted to the four committees during these briefings was minimal.(8) For example, although DCI Dulles briefed the committees in 1959 on Soviet strategic capabilities, they were not told this information was principally collected by U-2 flights over the Soviet Union. Dulles directed that the CIA subcommittees be advised of the planning for the Bay of Pigs operation several months in advance of its execution in 1961 by CIA-trained Cuban exiles. (9)

      From the beginning of the CIA, they provided classified written reports on a semiannual basis to the Joint Atomic Energy Committee on the Soviet atomic program. The committee occasionally held hearings to receive the DCI's testimony on this report. At this time, the Joint Atomic Energy Committee  had the only storage facility on Capitol Hill for classified information (located on the fourth floor of the Capitol).  This committee was the only regular customer of CIA briefings for many years. This committee received occasional requests from other committees for substantive briefings, but very infrequently.

      In late 1959, CIA also established a new and uncharacteristically open relationship with the Joint Economic Committee. DCI Dulles agreed to testify for the first time in public on the Agency's view of the Soviet economy. Beginning in 1960, CIA started contributing unclassified articles on aspects of the Soviet economy to compilations of economic research periodically published by the JEC and known as the "Green Books," a practice that has continued to the present.

      In 1962, Senator J. William Fulbright, chairman of the Senate Foreign Relations Committee, complained publicly that his committee needed access to intelligence in order to fulfill its responsibility to oversee foreign policy. He suggested that a joint committee on intelligence might help solve the problem. But Senator Russell remained staunchly opposed, even rejecting a compromise. (10) Efforts to resurrect the joint committee proposal were beaten back in the House in 1964 and in the Senate two years later, due to the efforts of the powerful leaders of the CIA committees.

      In 1966, Senator Russell invited Senator Fulbright and several other Senators who had co-sponsored the failed legislation to attend the meetings of the CIA subcommittee of the Senate Armed Services Committee.. Senator Fulbright attended one or two such meetings, but he soon found they were not worth his time, complaining, "They (CIA) never reveal anything of significance."(11)

      Still, membership on the "CIA sub-committees" carried a certain aura. Members had access to the secrets of the CIA and could, if they chose, cite such access to justify positions they were taking on particular issues--that is, "if you knew what I know, you would understand why I'm taking this position."

      The chairmen of the "CIA sub-committees" for the most part kept their colleagues on other committees at bay. As indicated above, efforts in the House and Senate to create joint committees on intelligence were repeatedly and decisively beaten back. Requests by other committees or individual Members for intelligence briefings normally had to be cleared with the House or Senate chairman concerned. CIA was advised, for example, that other Senate committees were not to be briefed unless Senator Russell approved, and all such briefings were to be limited to Members. (12)

      In practice, however, CIA was permitted to provide substantive briefings to other committees so long as they did not include information on intelligence operations or funding. For some of these entities, notably the Joint Atomic Energy Committee  and the Joint Economic Committee -neither of which had budget, oversight, or legislative authority--CIA's analytical assistance was substantial.

      In the late 1960s as Congress grew more assertive in foreign policy and military affairs. Prompted in part by growing public mistrust toward the executive over its handling of the Vietnam War, Congress began to assert itself more forcefully on how the war was being prosecuted as well as on the arms control and defense initiatives of the Johnson and Nixon administrations. As a result, Congressional demands for intelligence increased.

      In 1966, to handle an increasing level of involvement with Congress, DCI Richard Helms created a separate Office of Legislative Counsel with a staff of six. It was the first time the head of any US intelligence agency had seen fit to establish a separate office to handle Congressional relations.

      The Senate Foreign Relations Committee held hearings in March 1969 on the Nixon administration's request to fund a new ABM system known as Safeguard.   Secretary of Defense Melvin Laird disclosed that the Soviet Union was developing a new missile, the SS-9, which, if deployed in sufficient numbers by 1974 it could give Moscow a first-strike capability by wiping out all US land-based missiles. This public testimony was at odds with the conclusions reached in a National Intelligence Estimate (NIE) concerning the SS-9, prepared six months earlier, which had previously been briefed to the Senate Foreign Relations Committee. (15) A few days after Laird's testimony, the conclusions of the NIE were leaked to the New York Times. (16)  On 6 August 1969 the Senate agreed by a narrow margin to fund the ABM missile system deploying one site nearby the US ICBMs in North Dakota.

       In the following year, Congress became agitated by press leaks, attributed to administration officials, concerning possible expansion of the Soviet submarine base at Cienfuegos, Cuba.

      The number of CIA's appearances on the Hill reached a low point in 1971  Relations between CIA and the Senate Foreign Relations Committee heated up in 1972 when the Senate Foreign Relations Committee, as part of its inquiry into the Vietnam war, requested copies of all NIEs and Special National Intelligence Estimates (SNIEs) relating to Southeast Asia since 1945. CIA objected to the request but offered to provide briefings to the committee on issues of concern to it.

      In reaction to CIA's perceived stonewalling, Senator John Sherman Cooper of Kentucky introduced a bill requiring that intelligence information and analysis be provided to Congress; he argued that Congress could not carry its constitutional responsibilities in the foreign policy area without such intelligence support. The Senate Foreign Relations Committee held hearings on the proposal, and witnesses from the Nixon administration and the Intelligence Community testified in vigorous opposition. The bill died in committee.

      Congress grew increasingly restive in the early 1970s concerning the existing oversight arrangements for intelligence. Senator Russell's death in 1971 had removed the personification of the old system from the scene. During the same year, legislation was offered in both houses that would have required CIA to report on its overseas activities to the Senate Foreign Relations Committee and House Foreign Affairs Committee. Although both bills were beaten back, they did represent a sense of growing dissatisfaction. CIA's Legislative Counsel advised DCI Helms that the "aging and harassed protectors and benefactors" of the Agency could not be expected to "hold the lines" much longer against increasingly aggressive Congress members with different outlooks and temperaments.(22)

      (8) According to the unpublished draft CIA History Staff study, no records could be located at CIA that indicated these committees had been briefed on CIA's involvement in covert actions during the early 1950s.

      (9) Unpublished draft CIA History Staff study on relations with Congress.study.

      (10) Ibid.

      (11) Smist, pp. 6-7.

      (12) Unpublished draft CIA History Staff study.

      (15) For an excellent case study of this episode, see Lundberg, Kirsten, The SS-9 Controversy: Intelligence as a Political Football (Cambridge: John F. Kennedy School of Government, 1989).

      (16) Unpublished draft CIA History Staff study.

      (22) The Rise and Decline of the CIA by John Ranelagh, New York: Simon and Schuster, 1996.  https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-publications/books-and-monographs/sharing-secrets-with-lawmakers-congress-as-a-user-of-intelligence/1.htm


      In January 1970 the first revelations about the US Army's spying on the civilian population came from Christopher H. Pyle. Pyle learned while in the Army in the 1960s that "Army intelligence had 1,500 plainclothes agents watch every demonstration of 20 people or more throughout the United States.”    In the late 1960s, Pyle was an army captain teaching constitutional law at the U.S. Army Intelligence School in Fort Holabird, Maryland. In that capacity, he learned about the army’s domestic spying operation, which involved 1,500 plainclothes military personnel spying on antiwar and civil rights protesters across the country. 

      Pyle’s whistle-blowing did not sit well with the military, which put him on President Nixon’s “enemies list.” His taxes were audited, and efforts were made to defame his reputation and monitor his mail.

      Pyle stated, “What killed the Army's spying were the stories of former agents that were leaked to the press, week after week. The Army was so frustrated by our leaks that it established a secret 50-man damage control unit in the Pentagon. The sole task of this rather large plumbing firm was to find out who was behind the leaks and discredit them. Fortunately I had a source in the unit. He was code-named "Yellow Pants," after the mustard-colored corduroys he was wearing the day we first met, and he helped us to discredit the dis-creditors.”


      The Overseas Private Investment Corporation (OPIC) is an agency of the United States Government established in 1971 that helps US businesses to invest to "foster economic development in new and emerging markets in support of US foreign policy.  The agency provides political risk insurance against the risks of expropriation.   OPIC operations cost nothing to American taxpayers.  OPIC forbade American companies from interfering in domestic politics of other countries. 

      The OSIC is an independent agency of the United States government under the U.S. President vs. an Executive Department like Defense, State or Justice. OPIC’s Board of Directors consists of fifteen members— eight from the private sector and seven from the federal government (like the Department of State or Commerce).  (Source: The Secret History of the CIA by Joseph J. Trento. p. 393)

      The Economic Hit Man project

      I find it interesting that the Economic Hit Man covert operation got started as Congress was demanding to know what the secret operations the CIA was doing.   It is possible that the economic hit-man operations discussed in his book, The Confessions of an Economic Hit Man, by John Perkins was started by the shadow CIA to continue illegal covert operations in such a way as to avoid Congressional oversight and to work around the OPIC law.

      John Perkins was recruited in a similar secret manner very similar way a CIA officer, vets a human so

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