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CIA shuts-down Drug Law Enforcement 1915 to 1963

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  • dick.mcmanus
    CIA shuts-down Drug Law Enforcement 1915 to 1963 (copyrighted 3 September 2007) In 1915, the U.S. outlawed opium based patent medicines with the adoption of
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      CIA shuts-down Drug Law Enforcement 1915 to 1963

      (copyrighted 3 September 2007)

      In 1915, the U.S. outlawed opium based patent medicines with the adoption of the Harrison Narcotics Act. In 1921, the Hague Convention made it illegal to import opium from India to China. In 1921, the U.S. Supreme Court ruled that it was illegal for doctors to prescribe narcotic drugs to addicts. Arnold Rothstein was not unlike the robber barons of the 1920's, but unlike Morgan, Mellon, and Rockefeller, Rothstein was America's premier Labor racketeer, bookmaker, bootlegger, and drug trafficker, He was financing an international drug cartel and supplied millions of dollars' worth of illicit drugs to American gangsters. (The Strength of the Wolf, The Secret History of America's War on Drugs by Douglas Valentine, pgs. 6-10)

      In 1921, an estimated 300,000 ounces of heroin were being produced my manufacturers every month in New York, much more than was needed by area hospitals. Huge amounts of narcotics were being diverted onto the black market. As a result, the Jones-Miller Act of 1922 required standardization of manufacturing licenses and registration practices, and made the mere possession of narcotics a crime. This Act also created a federal narcotics commission.(p. 26)

      Around 1925, dope peddlers Charles Luciano, Frank Costello, and Meyer Lansky became a self-appointed heirs to Rothstein's drug trafficking operation. By 1929, the two main sources of illicit drugs from the Far East were the Ezra brothers gang in China and the Eliopoulos ring in Paris. In 1926, the U.S. War and State Departments thwarted the Treasury Department`s Narcotics Division and accommodated the Nationalist Chinese, whose survival depended on profits from drug smuggling.

      In the future, national security and political interests superseded those of the drug law enforcement agencies of the U.S. government. In the process of penetrating the mafia and the French connection, case-making agents of the Federal Bureau of Narcotics (FBN) would uncover FBI's and CIA's ties to organized crime and the FBN would be prevented from investigating the CIA and its Nationalist Chinese allies who operated the world's largest drug-trafficking syndicate. ( pgs. 3 and 10-12)

      In 1924, an American citizen formed a relationship the intelligence officer for General Chang Tsung-chang, a Shangtung warlord contending with Chiang Kai-shek and the Kuomintang Party for control of Shanghai. This American with the knowledge of the State and War Department, provided 6,500 Mausers (rifles) acquired from an Italian arms merchant, in exchange for $500,000 worth of opium. (pg. 12)

      During the Great Depression there was a controversy over national drug policy. Social scientists and other liberals were advocating legalization and a reduction in the price of prescription medicines as a most cost-effective way of putting drug traffickers out of business. Harry J. Anslinger, an apparatchik of corporate America, convinced Congressmen to wage a popular "tough on crime" campaign that to ensure their re-election. He promoted mandatory sentencing and longer prison terms. Relying on Anslinger's contacts in the press, the drug industry, and the Southern (U.S.) evangelical (religious) movement, he conjured up a rogue's gallery of undesirable minorities that appealed to traditional race and class prejudices. Pushing the idea of Killer Weed (Reefer Madness) used by lazy Mexicans on the southwest border, sex-crazed Negros and Puerto Rican seamen, inscrutable Chinese pagans who turned week-willed white women into prostitutes, and lewd Lost Generation atheists preaching free love and Bolshevism in Greenwich Village Cafes.

      On 30 June 1930 the Bureau of Narcotics was formed from the remnants of the Narcotics Division and the Treasury Department's Foreign Control Board. In September 1930, Anslinger, 38 yeas old, took charge - became the head of the new Federal Bureau of Narcotics. He had served as a U.S. Foreign Service officer (with the State Department) from 1918 to 1926 in Germany, Venezuela, and the Bahamas qualified him in view of the mandate imposed by Congress upon the Commissioner of narcotics, go to the foreign source of America's narcotics problem, without upsetting the State Department's apple cart. For the next, 32 years until he retired in 1962, defined the nations war on drugs. Anslinger put top agents in France, German, Holland, Canada, and Italy. Anslinger would become one of the founding fathers of the Office of Strategic Services (OSS) and the CIA in 1947. (pgs. 16 and 22, 26)

      In addition in 1926, Anslinger, was transferred from the State Department to the Treasury Department, where he served until 1929 as chief of the Probation Unit's Division of Foreign Control which had the mission stopping the flow of illegal liquor and narcotics into U.S. ports, arresting smuggling rings, and eliminate corruption. Anslinger's staff assistant Malachi Harney, in the 1920s oversaw Eliot Ness and the Untouchables in the successful pursuit of Al Capone in Chicago. (p. 22)

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      Franklin D. Roosevelt

      Jan. 1933 to April 12, 1945

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      Anslinger had the power to enable him to decide, in consultation with other top U.S. officials, which drug smuggling rings were to remain intact and which ones would be targeted for investigation and prosecution. This applied especially to the Nationalist Chinese government, which since its inception in 1927, relied heavily on drug-smuggling revenues. China and Japan were the major exporters of opiates to the U.S. illicit market throughout the 1930s. After the Japanese forces seized Shanghai in August 1937, Anslinger was less willing to target Chiang Kai-shek heroin trade to North America. Massive profits from the sales of drugs enabled the Kuomintang Party (KMT) to purchase $31 million worth of fighter planes for Chian Kai-shek's National Revolutionary Army. (p. 38)

      Starting in 1932, Stuart J. Fuller was Anslinger's counterpart at the State Department. As chief of the East Asia Division and he was the government's representative to the Opium Advisory Committee.

      In 1934, Treasury Secretary Henry Morgenthau created an Enforcement Board consisting of the heads of the Secret Service, the Bureau of Alcohol Tobacco and Tax, the Internal Revenue Service's Intelligence Unit, the Coast Guard, the custom service, and the (Federal) Bureau of Narcotics (FBN) . The Board's chief coordinator Harold Graves became Alslinger's boss. Also in 1934, Morgenthau gave the custom service jurisdiction for drug investigations in Asia, Latin America, and Mexico and in 1937, he put Customs agent Alvin Schariff in control of anti-narcotic operations in Europe. (pgs. 21-23)

      Schariff and FBI director J. Edgar Hoover were bureaucratic adversaries of Anslinger. While operating as a special employee of the War and State Department during the First World War, Schariff assassinated two German spies. (p. 23)

      Schariff and his 46 agents in European cities, developed a vast network of informants. They learned that narcotics from the Far East were smuggled through the Suez Canal into Italy and Turkey, then to Corsica and Marseilles (France), and that French Corsicans, financed by Greek racketeers, controlled the drug traffic. They also discovered that the over-land narcotics route included the Trans-Siberian Railroad and the Vienna Express from Istanbul to Paris. They located poppy fields in Yugoslovia.

      The Chief of U.S. Naval Intelligence wanted Schariff to obtain information in Europe and to use his narcotics investigations for merely a cover for espionage activities. In Paris as part of his espionage mission, Schariff worked with Ambassador William Bullitt in an effort to penetrate a faction of the Surete that protected Louis Lyon.

      NOTE: Sûreté

      (French for "surety" but transliterated as "safety" or "security") is a term used in French speaking countries in the organizational title of a civil police force.

       

      Lyon had work with Eliopoulos gang in Paris smuggling narcotics to various American gangsters. He operated a heroin factory in Paris. From his factories in Turkey and China, tons of opium moved to his accomplice, Corsican Paul Carbone in Marseillus, France. By 1940, Paul Carvone and Elie Eliopoulos became Nazi collaborators. The Surete protected Lyon because he spied against fascist French with ties to Nazi Germany. Lyon posed as a Nazi sympathizer in order to expose Gestapo agents trying to infiltrate the French Resistance. Following World War II, Lyon was awarded the French Legion of Honor. (p. 24-25)

      A member of the mafia boss Vincent Mangan's crime family in Brooklyn provided Ford Motor Company with the muscle it needed to smash an autoworkers strike outside Detroit in 1932. He was rewarded with a lucrative franchise until 1951 to move cars (and secretly, drugs) between Detroit and New Jersey and throughout New England and the East Coast. (p. 29)

      In 1930, Charles "Lucky" Luciano made a five-family crime group, made peace overtures to his rival crime lords in Chicago, and formed a national commission. of mafia bosses. Luciano became the American mafia's boss of bosses, and his partner, Meyer Lansky, incorporated crime in America. Meyer channeled mafia profits into legitimate business ventures, including Florida land deals, Mexican racetracks, and casinos in Cuba.

      Lansky became the chief financial officer and liasion to a worldwide network of Jewish gangsters. The Commission settled disputes and regulated four industrial-sized rackets: labor racketeering, gambling, prostitution, and drug trafficking. (pgs. 31-32.)

      In 1936, Luciano was convicted of compulsory prostitution and received a 32 year prison sentence. He remained the boss of bosses behind bars. He entrusted his mafia family to Vito Genovese. But Genovese was indicted for murder and fled to Italy in 1939. and Frank Costello ran took leadership of the Commission. Costello also managed gambling operations and casinos with Meyer Lansky , a Louisiana casino with Carlos Marcello, had a joint gambling and labor racket venture with Bugsy Siegel on the West Coast, Los Angeles and Las Vagas (Jack Dragna in California), and in New Jersey with Joe Adonis. Costello was said to have been a bootlegging partner of Joseph Kennedy's (a made man), father of JFK. He also had political contacts with Congressmen and Tammany bosses. In 1943, Costello got Thomas A. Aurelio a seat on the New York State Supreme Court. (pgs. 31 and 41)

      In 1934, Pendergast, the man who hand picked Harry Truman for the Senate and supported Truman through his political career helped Kansas City survive the Depression. He opened up the City to gambling, Black jazz musicians and by extension, the mafia's drug syndicate. (p.56)

      The FBN made a case against the Hip Sing T'ong, the drug-smuggling Chinese-American trade association and in November 1937, made mass arrests. (p. 27)

      In his autobiography, Narcotic Agent , FBN agent Maurice Helbrant explains that in the early days of the FBN, ambitious FBN supervisor in their quest to show success, asked agents to set up illegal wiretaps or break into a drug dealer's apartment to plant evidence.

      Helbrant learned that Jose Guillen was trafficking in drugs to finance a rebellion in Honduras. A collapse of the banana economy in Honduras prompted Honduran President Tiburcino Carias to also resort to drug smuggling . Associates of a cargo airline, Transportes Aereos Centro-Americanos (TACA) were backing Pres. Carias for re-election in October 1936, the U.S. had backed candidate. The State Department "ordered all (FBN) surveillance of the TACA group curtailed." In March 1936, the investigation concluded without uncovering any hint of TACA involvement in drug smuggling. Carias

      won the election. FBN knew he was smuggling drugs into Panama on TACA planes in 1937. Top U.S. officials including Stuart Fuller (State Department) and Harry Anslinger, looked the other way, because Carias provided the U.S. government and its corporate backers, with a with a valuable ally in Latin American as war loomed on the horizon. (pgs. 34-36)

      By March 1939, TACA held cargo service concessions in Costa Rica, Nicaragua, Guatemala, El Salvador, and Honduras and continued to engage in smuggling activities, "virtually untouched by (U.S.) government action. - William K. Jackson, the vice president of United Fruit (Company- now Chiquita Brands) put this situation in economic prospective "The greater the development of our trade relation with Latin America, the lesser their dependence on....." end quote (snip) Hitler (my word).. (The Strength of the Wolf, p.36)

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      In 1942, Naval intelligence was convinced that information about ship convoys leaving the US was being transmitted to the Axis by longshoreman of German and Italian

      extraction. Naval intelligence turned to the mob/outfit for help.

      A New York U.S. District Attorney gave Navy officials access to his Racket Bureau files so they could hire (recruit) low-level mafiosi to spy on potential saboteurs along the waterfront. (The Strength of the Wolf, p. 40)

      Navy Secretary Frank Knox created a special intelligence unit headed by Lt. Commander Charles Radcliffe Haffenden. Haffenden met with mob figures in his office at the Manhattan Astor Hotel. Gangster Meyer Lansky met with Haffenden and promised to get Lucky Luciano's support. Lucky Luciano became a partner with the U.S. Government to prevent sabotage on East Coast ports.

      Mafia bosses began providing Navy intelligence officers with union books and undercover jobs on fishing boasts from Maine to Florida. In return for services to the U.S. government, ruthless hoods were protected from prosecution for dozens of murders. This included the January 11, 1943, murder of Carlos Tresca in New York by Genovese's boys. He was a staunch anti-fascist and socialist publisher. Anslinger was fully aware of the Costello`s immunity through the Luciano Project (p. 40 and 41)

      Alslinger directed the FBN's New York office to investigate Costello link to drug smuggling, Starting in 1939, FBN had been building a case and as a result, in 1943 FBN arrested 106 smugglers in Mexico and the U.S. The gangsters had been moving drugs from Mexico through Texas to New York, where clandestine labs processed opium into heroin. Thomas Lucchese, Meyer Lansky and Frank Costello were the financial backers of this drug trafficking and were implicated in it, but were not indicted. (The Strength of the Wolf, p. 42)

      Union strikes

      and sabotage were practically nonexistent on the New York docks during the war. And when the U.S. forces landed in Sicily, there were mafia men waiting to show them the location of German position and safe routes through minefields.

      During this final phase of the war, the mafia-military cooperation - known as the Luciano Project or Operation Underworld - moved from the Navy to the Office of Strategic Services (OSS) forerunner of the CIA.

      Source: Crossfire, The Plot that Killed Kennedy by Jim Marrs 156 - 167

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      After World War II, the Americans' great fear for Italy was that communist partisans fighting in the north would join with organized labor to bring the left to power. The OSS and its successors were apparently prepared to use any measures to forestall that event, including political assassination, terrorism, and alliances with organized crime. According to one OSS memo to Washington, the U.S. seemed to support a monarchist plan to use ``fascist killers'' to commit acts of terror and blame the left. U.S. involvement in Italian politics began in 1942, when the OSS successfully pressured the Justice Department to release imprisoned mobster Charles ``Lucky'' Luciano. Luciano had agreed to make contacts with Mafia pals to ease the way for the U.S. invasion of Sicily in 1943.

      The Luciano deal forged a long-standing alliance between the U.S. and the international Cosa Nostra. It also set a pattern of cooperation between U.S. intelligence agencies and international criminal organizations involved in drugs and arms traffic. The deal's godfather was Earl Brennan, OSS chief for Italy. Before the war, he had served in the U.S. Embassy, using his diplomatic cover to establish contacts with Mussolini's secret police and leading fascists.

      The Catholic Church also cooperated. U.S. ties to the Vatican were already substantial; one of the strongest links was a secret fraternity, the Rome-based Sovereign

      Military Order of Malta, which dates back to the First Crusade. OSS head William ``Wild Bill'' Donovan was a member. So were other top U.S. officials, including Myron Taylor, U.S. envoy to the Vatican from 1939 to 1950, and OSS officer William Casey. OSS Italy chief Brennan had contacts as early as 1942 with Vatican Under-Secretary of State Gian Battista Montini, who became Pope Paul VI in 1963

      Sources: Operation GLADIO: THE SECRET U.S. WAR TO SUBVERT ITALIAN DEMOCRACY by Arthur E. Rowse

      http://www.mega.nu:8080/ampp/gladio.html

      Luciano Project gangsters helped the US intelligence agencies keep in touch with Sicilian Mafia leaders exiled by Italian dictator Benito Mussolini. Domestically, the aim is while in Italy the goal is to gain intelligence on Sicily prior to the allied invasions and to suppress the burgeoning Italian Communist Party., Luciano developed connections in Lebanon and Turkey that supply morphine base to labs in Sicily. The Office of Strategic Services (OSS) and Office of Naval Intelligence (ONI) also work closely with Chinese gangsters who control vast supplies of opium, morphine and heroin, helping to establish the third pillar of the post-world War II heroin trade in the Golden Triangle, the border region of Thailand, Burma, Laos and China's Yunnan Province.

      In its first year of existence, 1947, the CIA continues U.S. intelligence community's anti-communist drive. Agency operatives help the Mafia seize total power in Sicily and it sends money to heroin-smuggling Corsican mobsters in Marseille to assist in their battle with Communist unions for control of the city's docks. By 1951, Luciano and the Corsicans have pooled their resources, giving rise to the notorious `French Connection' which would dominate the world heroin trade until the early 1970s. The CIA also recruits members of organized crime gangs in Japan to help ensure that the country stays in the non-communist world. Several years later, the Japanese Yakuza emerges as a major source of methamphetamine in Hawaii.

      Source: http://www.fas.org/irp/congress/1998_cr/980507-l.htm

      In March 1941, on returning from China, Lauchlin Currie, a young economist in the White House, recommended to President Roosevelt that China be added to the Lend-lease program (lend or supply military aid or supplies) . In May 1941, he presented a paper on Chinese aircraft requirements to General George Marshall and the Joint War Board. The Lend-lease program began in March 1941, nine months before attack on Pearl Harbor.

      The American Volunteer Group, a group of USAAF, USN and USMC pilots recruited under a secret executive order signed by President Roosevelt April 15, 1941 authorizing Army Reservists on active duty to resign from the Army Air Corps in order to sign up for the AVG.

      The AVG was largely the creation of General Claire Chennault, retired from the U.S. Army Air Corps. The resultant clandestine operation was organized in large part by Lauchlin Currie, and by Franklin D. Roosevelt intimate Thomas Gardiner Corcoran.. Chennault spent the winter of 1940-1941 in Washington, helping to negotiate the purchase of 100 Curtiss P-40 fighters. He also supervised the recruiting of 100 pilots. The AVG is unique in that it had government funding and approval to recruit from active duty units in the United States. The pilots were either currently serving in American armed services or reserve officers. The pilots who volunteered were discharged from the American armed services, to fly and fight as mercenary for the Republic of China Air Force. They were officially employees of a Private military contractor, the Central Aircraft Manufacturing Company, which employed them for "training and instruction". Currie also organized a large training program in the United States for Chinese pilots.

      These activities, together with Currie's work in helping to tighten sanctions against Japan, are said to have played a part in provoking Japan's attack on Pearl Harbor.

      http://en.wikipedia.org/wiki/Flying_Tigers

      http://en.wikipedia.org/wiki/Lauchlin_Currie

      To protect Taiwan from the PRC, the U.S. China lobby raised nearly $5 million of private money, which the CIA used to buy airplanes for Gen. Chennault. (The Strength of the Wolf, p. 77)

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      Harry S. Truman April 12, 1945 to January 20, 1953

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      Detachment 101

      of the Office of Strategic Services (OSS) The unit was in existence from April 14, 1942 to July 12, 1945. During most of that time, it funded and coordinated various resistance groups made up of the Kachin peoples of northern Burma. One resistance force was known as the Kachin Rangers and was under the command of

      Carl F. Eifler

      though often the term Kachin Rangers has been used to describe all Kachin Forces raised during the war by the Americans in Northern Burma.

      Flying vital supplies to OSS Detachment 101's scattered guerrilla units, air supply was critical to the Allied campaign in Burma. Such means were the only way that logistical problems caused by the difficult terrain and the lack of good roads and navigable waterways could be solved. Without a reliable air supply system, Allied operations in Burma could not have been successful.

      Overall, during Detachment 101's tenure in Burma, its forces eliminated over 5,000 Japanese troops, assisted in rescuing over 300 downed Allied airmen, derailed 9 trains, blew up 56 bridges, destroyed 252 vehicles, and eliminated numerous dumps and other enemy installations.

      Formed in 1942, Detachment 101 supported Stilwell's, and later Sultan's, Northern Combat Area Command as an intelligence-gathering unit and as an organization for assisting in the return of downed Allied airmen to friendly lines. By the spring of 1945, however, Detachment 101, commanded by Col. William R. Peers, had organized a large partisan force behind enemy lines in northern and central Burma. Reaching a peak strength of over 10,000 native Burmese Kachin tribesmen and American volunteers, the detachment operated as mobile battalions screening the advance of British and Chinese forces moving on Mandalay and Lashio. Completely supported by air, they employed mainly hit-and-run tactics and avoided pitched battles against better trained troops.

      http://www.ibiblio.org/hyperwar/USA/USA-C-Burma45/index.html

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      Pres. Roosevelt increased the number of FBI agents fivefold. The FBI was made responsible for intelligence operations in the western hemisphere. Hoover spread 150 intelligence special agents throughout Latin America and Canada. The FBI set up an exclusive liaison relationship with British intelligence operations in the western hemisphere. When Pres. Truman decided to give the new CIA operational control for collecting intelligence in the western hemisphere in 1947, taking it away from the FBI, Hoover ordered his FBI special agents not to share their files or sources with the CIA. (pgs. 250-251)

      Irving Brown

      In Inside the Company, CIA Diary by Philip Agee, wrote, "At the highest level, labor operations congenial to the Agency are supported through George Meany, President of the American Federation of Labor (AFL), Jay Lovestone Foreign Affairs Chief of the AFL and Irving Brown, AFL representative — all of whom were described to us as effective spokesmen for positions in accordance with the Agency's needs."

      Lovestone's very extensive, and expensive, anti-communist operations in Europe were

      largely financed from money siphoned off from the Marshall Plan (officially the European Recovery Plan), which provided $13 billion to Western European nations between 1948 and 1950.

      The Free Trade Union Committee (FTUC) was established at the AFL's 1944 convention with a mandate to assist unions abroad. It was tightly controlled by four

      prominent labor leaders: George Meany, then the federation's secretary-treasurer; David Dubinsky, president of the International Ladies' Garment Workers Union; Matthew Woll, president of the Photoengravers Union, and George Harrison, president of the Railway Clerks.

      The FTUC was an "off budget, off contribution" agency, whose financial operations were kept secret, even from union leaders in the AFL's upper echelons. Two of its first

      actions were to appoint Jay Lovestone as executive secretary and name Irving Brown as the AFL's sole representative in Europe.

      Arriving in Paris in October 1945, Brown said of his duties as the AFL representative: "I want to build up the non-communist unions in France and Italy and weaken the Communist-Socialist labor coalition (Confederation Generale du Travail) - CGT in France and the CGIL in Italy." He was to report regularly to Lovestone and Meany. There were only three major political parties in France-Socialist, Communist, and Gaullist- General de

      Gaulle's new anti-Communist party (Rassemblement du Peuple Francais, RPF) and by a simple process of elimination the CIA wound up bedding down with the Socialists. The CIA's operatives supplied arms and money to Corsican gangs for assaults on Communist picket lines and harassment of the important union officials. During the month-long strike the CIA's gangsters and the purged CRS police units murdered a number of striking workers and mauled the picket lines. http://www.drugtext.org/library/books/McCoy/book/14.htm

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      In 1947-48, Brown hired squads of goons to wrest control of the docks at Marseilles and other southern ports from the communist port unions, thus enabling allied ships to deliver food, machinery and other items in short supply to France and Italy. Brown enlisted Corsican and Sicilian gangsters to toss strikers off the docks into the water. (The Strength of the Wolf, p. 272)

      Brown could not have cleared the docks for allied shipping or effectively challenged the communist-led unions without the huge sums of money which he continuously received to bribe foreign union leaders, organize demonstrations, call or break strikes, influence union elections and disrupt communist meetings.

      Between 1945 and 1948, Brown was getting funds from the AFL treasury, the U.S. State Department and major corporations like Exxon, General Electric, Singer Sewing Machines and others that had commercial interests in Europe. Then, in 1948, the U.S. launched the Marshall Plan (European Recovery Plan), which allotted $13 billion to Western Europe, but nothing to countries in the Soviet orbit.

      The Marshall Plan stipulated that 5% of the funds should be used for administrative purposes and rebuilding Western European unions. But since Brown had developed a cozy relationship with Averill Harriman, the Marshall Plan director, he was able to get a good slice of the $800 million available in the a slush fund (CIA funding) to finance his expanding activities.

      When the Marshall Plan folded in 1950, the Central Intelligence Agency was there to continue funding Brown's secret operations on an even grander scale. The CIA turned over tens of millions to the Free Trade Union Committee (FTUC), because the spy agency found Brown's covert operations useful. Neither the CIA nor the FTUC were obliged to report these undercover financial transactions.

      Brown felt he could be of special value to the United States by organizing and unifying the Greek non-communist unions. It was a difficult assignment, because the principal force among the workers were the Greek communist guerrillas, who had fought the Nazi-Italian occupation, as well as their homegrown fascists.

      Source: AFL-CIO's Dark Past, November 15, 2004

      http://www.laboreducator.org/darkpast3.htm

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      In June 1962, a Federal Bureau of Narcotics Special Agent launched an investigation of Irving Brown for drug trafficking, but this Agent was quickly told to drop the case by the CIA. (The Strength of the Wolf, p. 270 - 273)

      Irving Brown was a protege of Jay lovestone. In 1945, with the support of the Lovestone became executive secretary of the Free Trade Union Committee. CIA officer James Angleton became Lovestone's CIA case officer in 1947. After Angleton became chief of counterintelligence in 1955, he contacted Lovestone. Angleton paid Lovestone and thus Brown, through labor lawyer Mario Brod, Angleton's liaison to the mafia. (p. 271)

      FBN learned that the flow of one avenue of heroin into Kansas City, went from Marseilles via Havana via Tampa, Flordia. Santo Trafficante Sr, the patron "saint of drug," who won a mafia war with his mafia competitors in Florida and went on with Meyer Lansky to control the Cuba-to-Tampa drug connection. (p. 56)

      In January 1946, Luciano's 32 years prison sentence was commuted and he was deported to Italy and we was a free man there. In October 1946, Luciano traveled to Havana and held the Cuban Crime summit with the other U.S. mafia Commission bosses. (The Strength of the Wolf, p. 52)

      By mid-1947, several of the gangsters from the Luciano Project, including Lansky, were actively involved in arms and drug smuggling in the Middle East. As the New York Times

      reported on 28 November 1948, the Israel was combating "widespread narcotics smuggling" by criminals who were still trafficking in drugs and guns as they had during the war. (The Strength of the Wolf, p. 72)

      On behalf of the CIA, FBN headquarters focused U.S. public opinion by blaming Kuomintang (Taiwan) drug smuggling ring in San Francisco on a Chinese Communist-Cuban and allowed top Taiwanese drug smugglers to escape punishment. George White told the press the Taiwanese heroin had come from Communist China/PRC. The CIA's anti-Castro Cubans were smuggling spies and terrorists into Cuba and returning with shiploads of narcotics for sale in America. (The Strength of the Wolf, p. 235)

      Determined to prevent the UN from admitting the PRC, the China (American-Taiwanese) lobby launched a massive propaganda campaign based largely on FBN head, Harry Anslinger going back to 1949. (p. 77)

      FBN chief, Harry Anslinger made public assertions that the PRC was using opium profits to finance wars in Korea, Vietnam, and Malaysia, even if that assertion was contradicted by the facts. (p. 80).

      In remarks delivered to the UN's Commission on Narcotic Drugs in April 1953, Anslinger falsely reported all heroin seized in Japan "came from Communist China. (p. 133)

      In 1955, at a U.S. Senate hearing, Anslinger convinced Senators that the PRC was "the greatest purveyors of drugs in history". George White also testified at a Congressional Committee that the PRC had been smuggling drugs in exchange for gold, with which it bought strategic materials to arm North Vietnam. (pgs. 152- 153)

      As the communists swept to power in China in 1949, more than 12,000 troops from the 3rd and 5th armies of the Chiang Kai-Shek's CIA-backed Kuminatang (KMT) fought their way out of Yunnan province while their compatriots hot-footed it to Taiwan. The dedicated troops set up a makeshift camp deep in the jungles of northern Burma, and for the next 12 years waged a vicious, opium-funded guerrilla war against the armies of both communist China and Burma.

      In 1944, John S. Service, a Foreign Service (State Dept.) officer serving as General Joseph Stilwell's liaison to the Communist Chinese reported, the Nationalist (Chiang Kai-shek were decadent, totally dependent on opium, and "incapable of solving China's problems." His report contributed to the Truman administration's decision not to come to Chiang Kai-shek's rescue. In 1955, people in the U.S. government tried to destroy the reputation or label John Service as a communist sympathizer. (pgs. 69 and 79)

      In March 1950, U.S. Senator Estes Kefauver (D-TN) worked to form Special Committee to Investigate Organized Crime in Interstate Commerce to expose the role of organized crime in political corruption., illegal gambling and labor racketeering. The FBI director, J. Edgar Hoover, refused to allow FBI agents to serve as investigators for this committee. (The Strength of the Wolf, p. 85)

      An alliance of three intelligence agencies, Thai, American and Nationalist Chinese, played a catalytic role in promoting the production of raw opium on the Shan Plateau of northern Burma. During the early 1950s, the CIA covert operations in northern Burma fostered political alliances that inadvertently linked the poppy fields of northern Burma with the region's urban drug markets. After the collapse of the Nationalist Chinese government in 1949, some of its forces fled across the border into Burma, where the CIA equipped them for several aborted invasions of China in 1950.

      To retaliate against Communist China for its intervention into the Korean War, President Truman had ordered the CIA to organize these Nationalist elements inside Burma for an invasion of China. The idea was that the masses of southwestern China would rise up in revolt against communism and China would evidently pull its troops out of Korea, and our troops in Korea would be saved.

      After their invasions of 1950 were repulsed with heavy casualties, these Nationalist troops camped along the border for another decade and turned to opium trading to finance their operations. Forcing local hill tribes that produced opium, the Nationalist troops supervised a massive increase of opium production on the Shan Plateau of Burma. After the Burmese army evicted them in 1961, the Nationalist forces established a new base camp just across the Burma border in Thailand and from there dominated the Burma opium trade until the mid-1980s. By the early 1960s, when this CIA operation finally ended, Burma's opium production had risen from fifteen to three hundred tons, thus creating the opium zone that we now call the Golden Triangle.

      During their own Vietnam War, French military integrated opium trafficking with covert operations in a complex of alliances that the CIA would later inherit. After abolition of the opium monopoly in 1950, French military imposed centralized covert controls over an illicit drug traffic that linked the Hmong tribal poppy fields of Laos with the opium dens then operating in Saigon, generating profits that funded French [covert] operations during their Vietnam War from 1950-1954. When America replaced the French in Vietnam after 1954, the CIA fell heir to these covert alliances and their involvement in opium trading. In Laos during the 1960s the CIA battled communists with a secret army of 30,000 Hmong highlanders, a secret war that implicated the CIA in that country's opium traffic. Although the Agency did not profit directly from the drug trade, the combat strength and covert action effectiveness of its secret army was nonetheless integrated with the Laotian opium trade.

      How and why?

      The answer lies in the CIA's doctrine of covert action and its consequent reliance upon the influence of local military leaders or warlords. In Laos a handful of CIA agents relied on tribal leaders to motivate their troops and Lao generals to protect the cover of this operation. After fighting in Vietnam spilled over into Laos in 1965, the CIA recruited 30,000 Hmong highlanders into this secret army, making the tribe a critical CIA asset. Between 1965 and 1970 the Hmong guerrillas recovered downed U.S. pilots, battled local communists, monitored the Ho Chi Minh Trail, and, most importantly, protected the radar that guided the U.S Air Force bombing of North Vietnam.

      By 1971, according to a U.S. Air Force study, every Hmong family had lost members.

      To fight this secret war, the CIA sent in American agents in a ratio of one for every thousand Hmong guerrillas, numbers that made the Agency dependent upon tribal leaders who could mobilize their people for this endless slaughter. The CIA gave its chosen client, Hmong General Vang Pao, control over all air transport into Hmong villages scattered across the mountain-tops of northern Laos-the shipment of rice, their main subsistence commodity, into the villages and the transport of opium, the tribe's only cash crop, out to markets. With his chokehold over the household economy of every single Hmong family, General Vang Pao was transformed from a minor tribal warlord into a powerful man who could extract boy soldiers for slaughter in an endless war. Since opium trading reinforced the authority of these Hmong officers, the CIA found it necessary to tolerate the traffic.

      The CIA's policy of tolerance towards its Laotian allies did not change even when they began producing heroin to supply U.S. combat forces fighting in South Vietnam. In 1968-1969, CIA assets opened a cluster of heroin laboratories in the Golden Triangle region where Burma, Thailand and Laos converge. When Hmong officers loaded opium on the CIA's Air America and the Lao army's commander-in-chief opened a heroin lab to supply U.S. troops in South Vietnam, the Agency was silent.

      All of this heroin was smuggled into South Vietnam. By 1971, according to a White House survey, 34%, or more than one-third, of U.S. troops were addicted to heroin. Instead of trying to restrain drug trafficking by its Laotian assets, the Agency participated in, engaged in, concealment and cover-up.

      By 1974 Southeast Asian syndicates were supplying a quarter of the demand for U.S. heroin with Golden Triangle heroin.

      When Alfred McCoy's book, The Politics of Heroin: CIA Complicity in the Global Drug Trade, was in press, the CIA's Deputy Director for Plans pressured his publisher to suppress it. After the book was published, unaltered, CIA agents in Laos pressed his sources to repent and convinced investigators from the House Foreign Relations Committee that his allegations were baseless. The CIA's Inspector General conducted a secret internal investigation that confirmed the core of these allegations.

      Source: Alfred McCoy, http://www.voxfux.com/features/cia_drug_trafficking2.html

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      Back to the 1950s

      In 1950, (around the time of outbreak of the Korean War) the former OSS, now CIA, created a pair of front companies to supply and finance the KMT soldiers. One of these, based in Taiwan, was Civil Air Transport (CAT). Lt. General Claire Chennault was put in charge of CAT.

      Chiang Kai-Shek's men, funded by the CIA in a hopeless notion that they could retake mainland China, became the foot soldiers of the Asian drug armies. They persuaded Burmese farmers to switch from growing food to growing opium. The CIA put Paul Helliwell in charge of Sea Supply Corporation in Bangkok. The company was a CIA front shipping firm, which used CAT planes to deliver weapons and food to Burma and fly out drugs.

      It is important to note that Helliwell would later become Ted Shackley`s paymaster to anti-Castro Cubans. Shackley was then the Chief of Station of the CIA's covert Miami station that planned the Bay of Pigs operation and other anti-Castro operations. Shackley would later become a leading CIA, special-mission operations officer in Southeast Asia.

      When Mao Tse-tung's peasant armies captured Shanghai after World War II, they drove China's heroin traffickers out of the country. The new Communist regime then began a massive detoxification program to combat its addict population, estimated at 40 million, the largest in the world. Communist cadres identified addicts and sent them to local drug clinics; persistent addicts were dispatched to labor camps. Through the process of land reform, extensive poppy fields were reclaimed for food production and further opium cultivation was banned. The People's Liberation Army began patrolling the Chinese border to prevent an expected counter-attack by CIA-supported Nationalist Chinese troops and China's drug trade virtually ceased.

      The CIA and the U.S. Agency for International Development (USAID) supplied the region's opium and heroin dealers with arms, ammunition, transportation of food supplies, buildings and "humanitarian aid", in exchange for mercenary forces or political leverage. These dealers included the Kuomintang (KMT or Nationalist Chinese) on the Chinese border, Hmong tribesmen in Laos led by narcotics trafficker Vang Pao, and various political factions in South Vietnam and Burma.

      The OSS and Office of Naval Intelligence (ONI) also work closely with Chinese gangsters who control vast supplies of opium, morphine and heroin, helping to establish the third pillar of the post-world War II heroin trade in the Golden Triangle, the border region of Thailand, Burma, Laos and China's Yunnan Province.

      Throughout the Cold War, the CIA used gangsters and war lords, many of them drug dealers, to fight communism. It includes Marseilles Corsicans, Lao generals, Thai police, Nationalist Chinese irregulars, Afghan rebels, Pakistani intelligence, Haitian colonels, Mexican police units, Guatemalan military and more. During the forty years of the Cold War, government intelligence services-our own CIA included--forged covert action alliances with some of Asia's key opium traffickers. The Agency tolerated such trafficking and when necessary blocked investigations. Since ruthless drug lords made effective anti-Communists, and heroin profits amplified their power.

      Since British colonial India supplied these colonial governments in Southeast Asia with limitless, low cost opium, Southeast Asian colonial governments had no reason to encourage local opium production. The sudden growth of the Golden Triangle opium production in the 1950s appears in retrospect a response to two stimuli: prohibition and protection.

      Responding to pressures from the UN, Southeast Asia's governments abolished legal opium sales. They closed the legal opium-smoking dens between 1950 and 1961, thereby creating a sudden demand for illicit opium in the cities of Southeast Asia.

      The second factor: protection. An alliance of three intelligence agencies, Thai, American and Nationalist Chinese, played a catalytic role in promoting the production of raw opium on the Shan Plateau of northern Burma. During the early 1950s, the CIA covert operations in northern Burma fostered political alliances that inadvertently linked the poppy fields of northern Burma with the region's urban drug markets. After the collapse of the Nationalist Chinese government in 1949, some of its forces fled across the border into Burma, where the CIA equipped them for several aborted invasions of China in 1950.

      To retaliate against Communist China for its intervention into the Korean War, President Truman had ordered the CIA to organize these Nationalist elements inside Burma for an invasion of China. The idea was that the masses of southwestern China would rise up in revolt against communism and China would evidently pull its troops out of Korea, and our troops in Korea would be saved.

      After their invasions of 1950 were repulsed with heavy casualties, these Nationalist troops camped along the border for another decade and turned to opium trading to finance their operations. Forcing local hill tribes that produced opium, the Nationalist troops supervised a massive increase of opium production on the Shan Plateau of Burma. After the Burmese army evicted them in 1961, the Nationalist forces established a new base camp just across the Burma border in Thailand and from there dominated the Burma opium trade until the mid-1980s. By the early 1960s, when this CIA operation finally ended, Burma's opium production had risen from fifteen to three hundred tons, thus creating the opium zone that we now call the Golden Triangle.

      As in Burma, so in Laos, distance would insulate the Agency from the consequences of its complicity in the drug trade.

      During their own Vietnam War, French military integrated opium trafficking with covert operations in a complex of alliances that the CIA would later inherit. After abolition of the opium monopoly in 1950, French military imposed centralized covert controls over an illicit drug traffic that linked the Hmong tribal poppy fields of Laos with the opium dens then operating in Saigon, generating profits that funded French [covert] operations during their Vietnam War from 1950-1954. When America replaced the French in Vietnam after 1954, the CIA fell heir to these covert alliances and their involvement in opium trading. In Laos during the 1960s the CIA battled communists with a secret army of 30,000 Hmong highlanders, a secret war that implicated the CIA in that country's opium traffic. Although the Agency did not profit directly from the drug trade, the combat strength and covert action effectiveness of its secret army was nonetheless integrated with the Laotian opium trade.

      http://sonic.net/~doretk/Issues/97-06%20JUN/ciacovert.html

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      In 1952, Meyer Lansky was purchasing a share of the Cabaret Montmartre gambling casino in Havana and entering into a partnership with Cuban dictator Fulgencio Batista. The Kefauver hearings had shutdown Lansky's gambling clubs in Florida and Batista allowed the mob t control Cuba's hotel and tourist unions and convert Havana into the acknowledge brothel of the western hemisphere. The deal also allowed Santo Trafficante to move narcotics from the Middle East and Far East through Cuba to Miami. Lansky's partner John Pullman formed the Exchange and Investment Bank of Geneva specifically to laundering money for the drug syndicate. (The Strength of the Wolf, p. 113)

      ----------

      Dwight D. Eisenhower

      January 20, 1953 to January 20, 1961

      ----------

      In 1954, Santo Trafficante Sr. died and his son Santo Trafficante Jr. took over his rackets in Cuba and Florida. (p. 156)

      In 1955, Sami Khoury sold 50,000 submachine guns to Israel. According to FBN agent Jim Attie, the Israelis spend millions in CIA money bribing officials in Europe and the Middle East for information and protection. The Israelis provided the contacts and money that enabled Khoury to move narcotics across Europe. With protection guaranteed by the Israeli foreign intelligence service, Mossad, Khoury packed his car full of morphine base and drove to France, where he stayed at an Israeli safehouse. Attie also claims that the Israelis prevented the FBN from conducting investigations against drug-dealing Israeli agents in Aleppo, Syria the major transit point in the region. (pgs. 125-126)

      Chief CIA's counterintelligence Division, James Angleton's contact with the mafia was Mario Brod. Brod was a Army counterintelligence Corps (CIC) officer who had worked with OSS officer Angleton. Angleton held the Israeli account at CIA and he and his inner circle of subordinate CIA officers alone were in liaison with the Mossad. One of Angletons missions for CIA was to penetrate the intelligence services of France. (p. 151-152).

      The Daniel Act in 1955, provided mandatory sentencing, so that a teenage caught with a joint was treated as severely as a mafia don. (p; 153)

      In October 1957, a series of mafia summit meetings in Palermo, Italy were carefully monitored by the FBN and verified the existence an International Grand Council of Mafiosi. Lucchese and Lansky had sent their sons to West Point. They and Santo Sorge were rich and didn't need all the heat from U.S. government drug law enforcement and so tried to convince the bosses to get out of the drug business. The Sicilians gave the American mafiosi an ultimatum to Palermo. "They knew there were a number of rebellious young hoods in America, so they told the bosses, 'If they don't deal with us, we'll deal with them'. Not having control over narcotics would have put all their rackets at risk, so the Americans had no choice but to go alone." Via a wiretape of a Boston hood who had attended this Palermo summit, FBN learned about the Apalachin, New York convention/meeting of American mafia bosses on November 17, 1957. (p. 168)

      The FBN in 1957, had solid evidence that Jimmy Hoffa was beholden to the mob and certain locals in New York were providing logistic support to the mafia's national drug-distribution syndicate. FBN also learned that Sam Giancana was the mafia boss in Chicago and they had identified his sources of drugs in Canada, Mexico and Latin America.(The Strength of the Wolf, pgs. 177 and 207)

      ----------

      The U.S. adventure in Vietnam actually began in 1954, when President Eisenhower decided that the U.S. could replace France as the colonial power there. Lucien Conein was the first CIA officer (tasked to service) in Vietnam. As a member of OSS, Conein distinguished himself by parachuting into Indochina and leading raids against the Japanese Army. He arrived just after the French decided to call it quits following the loss of the garrison at Dein Bien Phu. The armistice signed in Geneva on July 21, 1954, divided Vietnam at roughly the 17th Parallel. (pgs 327-328)

      The majority of Vietnamese favored Communism, they honored Ho Chi Minh as the man who had led the war of liberation against the French. One of the provisions of the Geneva agreement was the resettlement provision. By May 1955, every Vietnamese had to choose whether to live in the north or south. The CIA gave its men (officers) a blank check to resettle enough Catholics in the south to create a political base for Ngo Dinh Diem. The CIA spent $100 million moving nearly a million Vietnamese from the north to the south. General Chennault conducted the evacuation using his Civil Air Transport (CAT), which he ran from Taiwan. One of Conein's jobs was to creat a sense of panic and terror over what life would be like for those who remained in the north. (p. 329)

      (The Secret History of the CIA, by Joseph Trento, p. 332).

      ----------

      Over the next decade, Burma's Shan states were transformed into the world's largest opium producer. The CIA's alliance with the opium armies in the Burma-Thai borderlands lasted for a decade. The Agency delivered arms to their forces in Burma and then loaded opium aboard Civil Air Transport planes for the return flight to Bangkok. Infiltration routes for CIA commando teams into Southern China were also used as drug smuggling routes for traffickers in Burma and Thailand. The Agency maintained five secret training camps and two key listening posts in the Shan states, protected by drug smuggling KMT (Nationalist Chinese) troops and local tribesmen.

      The rationale behind the CIA's support for drug traffickers in the region was best summed up by General Tuan Shi-wen, a veteran of the CIA's covert war in Burma.

      The CIA, via its Sea Supply Company, threw its full support behind General Phao, making him the strongest man in Thailand. In exchange, Phao allowed the CIA to develop two Thai paramilitary organizations, the Police Aerial Reconnaissance Unit and the Border Patrol Police (BPP). To manage the training and equipping of the BPP, the CIA brought in Paul Helliwell, one of their specialists on forming front companies and laundering funds for "black" operations, to set up a cover organization operating out of Miami.

      By 1953, the CIA had supplied General Phao with $35 million of naval vessels, arms, armored vehicles, communications equipment and aircraft, and the Agency had 275 agents working with Phao's police. Phao became Thailand's most ardent anti-Communist and it appears that his major task was to support the KMT's political aims in Thailand and its guerrilla units in Burma. Phao protected KMT supply shipments, marketed their opium and helped to generate support for the KMT among Thailand's overseas Chinese community, the richest in Asia.

      By 1955, Phao's National Police Department (TNPD) had become the largest opium-trafficking syndicate in the country and was intimately involved in every phase of the narcotics trade. The level of corruption was remarkable, even by Thai standards. Police border guards escorted the KMT opium caravans from the Thai-Burma border to police warehouses in Chiangmai. From there, police guards brought it to Bangkok by train or police aircraft. Then it was loaded onto civilian coastal vessels and escorted by the maritime police to a mid-ocean rendezvous with freighters bound for Hong Kong or Singapore. The military elite that ruled the country grew immensely wealthy from their drug monopoly and from ties to the CIA.

      The CIA's airlines Civil Air Transport (later Air America) and Air Asia, along with the CIA's front company, the Pacific Corporation, provided air support for many of the drug operations in the Far East.

      In Laos, the CIA hoped to defeat the Pathet Lao (Laos's own pro-Communism guerrilla army). General Vang Pao organized sabotage forays into China for the CIA and sold Burmese opium to another CIA protégé, General Phoumi Nosavan, political leader of the Laotian right-wing. The economic alliance between Phoumi and the Hmong opened up a new trading pattern that supplied increasingly significant quantities of Burmese opium for the flourishing Laotian heroin laboratories.

      Phoumi had come to power in 1958 when an unexpected electoral victory by the Pathet Lao movement panicked the U.S. Fearing that Laos might eventually turn Communist, the CIA financed the formation of a right-wing coalition, while the State Department plunged the government into a fiscal crisis by cutting off all aid. Little more than three months after the elections, Prime Minister Souvanna Phouma and his neutralist government resigned. A new right-wing government took control, declaring: "We are anti-Communists." The State Department provided funds of $3 million a month to the new government. Backed by the CIA, Phoumi became a cabinet minister and a general, and with his personal CIA agent always by his side, plotted coups, rigged elections and helped the CIA build up its Secret Army in Laos.

      In July 1959, Garland Williams, a narcotics specialist for the State Department's Office of Public Safety, stated in a report, "The Narcotics Situation in South Asia and Far East" that the Kuomintang as the region's primary narcotics producer and Bangkok as "the most important single source of illicit opium in the world today. It is also the locale for the least amount of corrective effort by responsible American agencies."

      Williams noted that not only were Thai, CIA, and Kuomintang officials involved in the drug trade in the Golden Triangle, but also the French intelligence. The information Williams noted, became public knowledge in 1962 in Andrew Tully's book, CIA: The Inside Story. (p. 274)

      On 29 February 1960, Joseph Kennedy, JFKs father, met with Sam Giancana (Chicago mafia boss), Johnny Roselli and Mario Brod (James Angletion's liaison to the mafia) at a restaurant in New York. The purpose of this meeting was to negotiate the terms by which the mafia's constituents in Illinois would vote for JFK in the upcoming election. The hoods were trying to decide whether to support JFK or Lyndon Johnson, who was backed by Carlos Marcello. The mafia bosses agreed to contribute $500,000 to JFKs compaign. (p. 256).

      In November 1960, Pres. Kennedy appointed Bobby Kennedy as Attorney General. Bobby Kennedy increased the number of attorneys in the Criminal Division from 15 to 60 and directed them against the nation's leading mafia bosses. (p. 253)

      Hoover had known since October 1960, that Sam Giancana was a "million-dollar-man" (slang for a CIA protected drug trafficker) who had a role in CIA's plots to kill Castro. Hoover did not tell Bobby Kennedy this until April 1962. It wasn't until May 7, 1962 that the CIA finally told Bobby about the CIA's operations against Castro. And CIA security chief Sheffield Edwards and CIA General Counsel Laurence Houston lied that the CIA assassination attempts using mafia people had ended with Trafficante's exposure as a double agent working for Castro. CIA was still working with the mafia. (p. 257)

      In July 1961, FBN special agent Siragusa denounced Trafficante as a double agent. He insisted that Castro had jailed Trafficante as a ruse, and the he was in fact working with Castro's agents in the lucrative bolita gambling business in Miami. (p. 225)

      After Pres. Kennedy learned that top CIA officers had encouraged ultra (right) generals in Algeria to mutiny against Charles de Gaulle, he fired CIA director Allen Dulles. (p. 257)

      In late summer 1962, Carlos Marcello (mafia don in New Orleans) to Edward Becker, a businessman from California, that President Kennedy was going to be assassinated. In Miami, Santos Trafficante told Jose Aleman, a wealthy Cuban exile and underworld financier, that JFK was, "going to be hit" before the 1964 elections. Becker and Aleman informed the FBI of these allegations, but J. Edgar Hoover didn't alert Bobby Kennedy, the Attorney General, or JFK, or take any preventative action. (p. 284)

      The CIA had subverted the FBN's 1962 investigation of labor leader Irving Brown. Brown was given "port privileges at JFK Airport in New York, so he was routinely ushered through Customs without having his bags open (check for drugs). Brown had a relationship with French drug smuggler, Maurice Castellani. The FBN dropped its investigation of Castellani and he continue to traffic in Narcotics for seven years. Castellani had the support of the CIA and SDECE (Service de Documentation Extérieure et de Contre-Espionnage - the French foreign intelligence and counterintelligence service) and perhaps the Vatican. (The Strength of the Wolf, p. 362)

      Gen. Charles de Gaulle was funding his political actions teams through the drug trade. Many of the traffickers were heroes of the Resistance who worked closely with SDECE. The SDECE acted as a conduit for drug trafficking Corsicans abroad and de Gaulle protected them all. SDECE had an assassination squad that de Gaulle used to silence his enemies. (The Strength of the Wolf, p. 375)

      The French controlled Vietnam, Cambodia, Laos and Thailand and after the French defeat at Dien Bien Phu the U.S. moved in. The French when there financed their covert intelligence operations with opium. Maurice Belleux, who was the head of SDECE confirmed this. He stated that French paratroopers would collect raw opium and move it by French military aircraft to Saigon where it was distributed by the Sino-Vietnamese Mafia. The Corsican crime syndicate also shipped opium to Marseilles and refined it into Heroin from where it was distributed to Europe and the U.S, aka "The French Connection."

      In July 1962, the United States and the Soviet Union signed the Geneva Agreements on Laos, theoretically terminating their military operations in that chaotic region. Although American Green Berets and military advisers were withdrawn by October as specified, the CIA devised a number of deceptions to continue its covert activities. All of the CIA operatives moved to adjacent areas of Thailand but returned almost every day by helicopter or plane to direct guerrilla operations. Civilian personnel (not covered by the Geneva Agreements) were recruited for clandestine operations. In December 1962, for example, CIA officer Edgar Buell trained Hmong guerrillas in demolition techniques and directed the dynamiting of six bridges and twelve mountain passes near Ban

      Ban. The U.S. Embassy declared that Air America flights to Hmong villages, which carried armaments as well as refugee supplies, were "humanitarian aid" and as such were exempted from the Geneva Agreements.

      The CIA's paramilitary training programs in Laos developed into a covert war of unprecedented scale against the Pathet Lao in the northeast of the country, while providing bases for bombing raids against North Vietnam on the northwestern border. The CIA recruited and trained a private army of over 30,000 Hmong and other Laotian tribesmen. This group was known as L'Armee Clandestine (Secret Army). 40 or 50 CIA officers ran this operation, later aided by 20,000 Thai mercenaries at a cost of some $300 million a year.

      The CIA's Secret Army went on the rampage throughout northern Laos, attacking Pathet Lao villages and expanding Hmong commando operations into bordering provinces. As each village was captured, the inhabitants were put to work building crude landing strips, usually 500 to 800 feet long, to receive Air America's "refugee" supplies. These landing strips were then used by Air America to fly Hmong opium to markets in Long Tieng and Vientiane. Vang Pao's CIA counterpart Tony Poe later revealed that Vang Pao flew heroin across southern Laos into central Vietnam, where "the number two guy to President Thieu would receive it."

      To cover a fraction of the cost of the massive covert operations, Paul L.E. Helliwell , an active leader in the Florida Republican Party, and a friend of Nixon's friend Bebe Rebozo established and directed a string of drug money-laundering banks for the CIA. Helliwwell had set up a Bangkok trading company Sea Supply, which provided cover for CIA officers advising the drug-smuggling Thai border police.

      In Panama the World Commerce Corporation, the commercially oriented espionage net was formed by William Donovan and British spymaster William Stephenson. In Honduras, Richard Greenlee, a member of Donovan's law firm and a former OSS officer in Bangkok, set up Vangard Services in 1962 as a front for yet another batch of CIA-financed, drug related anti-Castro operations. There were dozens of CIA proprietary (front) companies operating world wide in similar fashion. The head of FNB, Harry Anslinger, stated that the CIA and Hoover subverted a grand jury that had been convened in Miami to probe the financial affairs of dozens of top mobsters. (pgs. 260- 261)

      Following the loss of his gambling and vice concessions in Cuba, mafia boss, Meyer Lansky, re-established his gambling business with, among others, Louis A. Chesler and Wallace Groves. Chesler, a Canadian millionaire and a former rumrunner, formed the Grand Bahama Development Company in 1961 with Groves. With the help of Helliwell, Donovan, and other CIA officers, large amounts of Thai, Taiwanese, and Vietnamese drug trafficking profits were allegedly invested (money laundered) in Castle Bank and Florida real estate deals through Chesler`s General Dev

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