90 Footnotes from Heroin Traffic: Some Amazing Coinci- dances... appearing on page 45. 4, Samuel Eliot Morison, The Oxford History of the American People (New York: O.U.B., 1965), pp. 825-26. Pointing to the subsequent impact on all Latin Ametiea, Morison concludes that "The United States is payiog dear today for Roosevelt’s impetuos- ity in 190: 2, For example the “nation-building” activiies in Vietnam of the immigrant Buropenn liberal Joseph Buttinger can be com= pared to those of the French liberal Buncau-Varilla, "who had fire caught the attention ofthe Seligmans through his netivities i the Dreyfus case’ 4, Washington Post, Dec. 22, 1963; quoted in Roger Hilsman, To Move a Netion (Garden City, N.Y Doubleday, 1967), p. 63. 4, Dayid Wise aod Thomas B, Ross, The Espionage Establish ‘ment (New York: Random House, 1967), p. 166. 5. Feank G. Wisner (OSS) came to the government in 1948 from the Wall Street legal firm of Cartes, Ledyard and Milbucn, which represented yarious Rockefeller, Whitney, and Standard Oil interests, As Disector of the “Office of Policy Co-ordination,” which became the CIA’s Plans Division on Jan. 4, 1951, Wisner ‘was in charge of the CIA's covert operations. William Harding Jackson (Republican), Smith's Deputy Director in 1930-51, had been with Carter, Ledyaed and Milbuea from 1934 to 1947, and was now an iavestment partaer of Joh Hay Whitney on the borrd of Bankers’ Trost, ‘Allen Welsh Dalles (OSS, Republican), a war-time director of J. Henry Schroder Banking Corporation and long-time partner ‘of Sullivan and Cromwell (linked with various Rockefeller and Schroder interests), succeeded Jackson as Deputy Director in August 1951 ‘Murray McConnel, President of the Manufacturers Capital Corporation on Wall Street, was the CIA's Deputy Director for ‘Administration in 1930 and 1951. ‘Walter Reid Wolf (Republican), a Vice-President of the Na- tional City Bank of New York and of its investment afiiate City Banke Farmers Teast, was a CIA Deputy Director (presumably ‘MeConnel's successor) from 1951 t0.1953, ‘Robert Amory, Jry son of a New York manufacturer who was 1 co-director of at least three Boston firms with directors of United Fruit, came to the CIA as Deputy Director for Intelligence from the Harvard Law School in 1952 (according to Who's Who). ‘Loftus E. Becker, of the Wall Street law frm Cahill, Gordon, Reindel and Ohl (Fepresenting the investment firms of Dillon Read and Stone and Webster) wvent on leave to the CLA in April 1951 and was named Deputy Dicector ‘for Incelligence”” (accord- ing to the Martindale-Hubbad Law Directory, 1965, p.4707) for A year beginning Janvary 21, 1952. ‘Al of these seven mea except Becker were also listed ia the select New York Social Register, and thus were members not only Of New York's financial-legal elite but of its hereditary upper lass. The known links beeween the CIA and Civil Ais Transport: ‘Air America date from this period, when New York finance eo: joyed a monopoly over the CIA's top cvilisn appointments. 6, David Wise and Thomas B. Ross, The Invisible Goveruntent (New York: Bantam, 1965), pp. 115-16; New Republic, April 12, 1969, p. 8. 7. Wise and Koss, Invisible Government, p. 140, 8, New York Times, 20 September 1957, p. 7. 9. The Pentagon Papers (New York: Bantam, 1971), p. 137. 40. Arnold Dibble, "The Nine Lives of Cat,” Saturday Evening Post, 18 May 1968, p. 30. New York Times, 1i November 1949, p. 14; 5 April 1970, p. 22; Free Ching Review, November 1963, p. 31. In 1949 the IGincheng Bank ostensibly severed its ‘conacctions with CAT, ia the vain hope of continuing to operate fon the maicland. But Wang Wea-san, then Manager of the Kin: cheng Bank, is sill Chairman of CATCL’s Board, on which the KMT-Chinese Nationalists have three of the ve seats. Air America pilots still cielate the rumor that "Madam Chiang owas the (continued on page 92) Hoo alg CIO Join the Paul B. Army — Fashion to the People! 1003 North Rush Street, Chicago Other Paul B, Stores located in New Town and Highland Park(Continued from page 0) planes and we lease them from her” (Sen Francisco Chronicle, 2 Apeil 1970, p. 31). 11, Joha R. Beal, Marshall in China (New York: Doubleday, 1970), p. 00 12, US Congress, House, Committee on Un-American Acti ties, International’ Commitniom: Conrltation with Major-General Claire Lee Chennault, 85th Cong., 204 Ses 9-10; US Department of State, US Policy (Washington: G.P,O,, 1950), pp. 21-22. 13, Time, 15 October 1951, p.23- 14, New York Times, 6 July 1951, p. 9; ef. June 9, 1951, p. 6 IB. Stone, The Hidden History of the Korea War (New Vork: ‘Monthly Rebiew Press, 1969), p. xi. The New York Times wrote thae "the soybean is expected to come under any Congressional inguiry of the China Lobby”; bue no such inquiry ever took place. Te may be relevant that Joe McCarthy himself took part in the profitable soybean speculations, on the advice of « Pepsi-Cola Tobbyise 15, The build up of US military airlift inside Korea was flown by CATCL, which soon boasted assets of some $5.5 million, and income’in the order of from $6 t0 $12 million a year (Colliers, AT August 1951, p. 35). 16. Cleveland Amory, Who Killed Society? (New York: Pocket Books, 1960), p. 202 17. One indication of this mutual advantage between political and economic concerns is the later convergence in the board of fone enterprise (Cino Engineering) of former CIA Director Bedell Smith, of his deputy director Murray MeConnel, and of ‘McConnel's successor Walter Reid Wolf who was iavolved io setting up CAT Tne. 18, New York Times, 3 Apeil 1970, pp. 1, 22. Air America pilots like Lockheed’s U-2 pilots, are mostly recrwited from the ‘USAR, and are said to have the same tights of retura lato the ‘USAF atthe end of theie “civilian” tour. 19. Transamerica Corp the Giannini holdieg cosporation, ‘was in the late 1940's the largest stockholder in both baaks, own ing about 9 percent of Ciibaak, and 22 percent of the Bank of Amerie 20. New York Times, 8 Apeil 1960, p. 62; US Congress, House, Commitee on Armed Services, Special Subcommittee on National Aislift, Hearings, 86th Cong., 2ad Sess, (Washington: G.P.O., 1960), pp. 4616-50, 4730-34. The President of Pan Am testified that bis company would have to release 300 pilots during the next six months "if tafic—other than noemal civil talic—doesn’t be- come available.” Tt has been noted that the Congressional com- promise becween the Pentagon and the commercial airlines con- ‘tained “ao recommendation about what to do if the combiaation ‘of more strategic airlift and coatiauing guarantees 10 the ( Tines) industry produced too much airlift in nonwar situations” Grederick C. Thayer, Air Transport Policy and National Secnrity, Chapel Hill, N.C: University of North Carolina Press, 1963, 1p. 225). Thanks to the Eaotiaa airlift and war, thac problem was not faced. 21, Angus MeDonald and Al McCoy, “Pa Am Makes the Going Grea,” Scanlan's (April 1970), p. 53. In 1961 Pan Am's Adlantic competitoc, TWA, lost $38 million. In 1962 Pan Am's total ais cargo load rose 500 percent, thanks in part to the ailife fn that year of US tcoops to Thailand. 22, Bd Reid, The Grim Reapers (Chicago: Henry Regnery, 1969), p. 219; Wallace Turner, Gamblers! Money: The New Force in American Life (Cambeidge, Mass: Houghton Miflin, 1963), PP. 10, 274, 23, George A. Dole, Chief Brecutive Officer of Air America, ‘Amos Hist, Treasurer, and Hugh Gruady, President of Air Asia, alll were recruited from Pan Am and its foreign subsidiari ‘as William Pawley had worked for Pan Am's China subsidiary ‘CNAC before setting up the Flying Tigers in 1941, One also notes that the “American Miers for Laos” who yolunteered in response to the 1939 Laos “iavasion’" were recruited by Cliford L. Speer, ‘1 “major in the Air Force Reserve and civilian employee at Fort 92 Huschuca, Arizona” (New York Times, 27 September 1959, p. 16). Pan Am has a contract at Fort Huachuca to conduct highly secret "electronics weapons” research for the USAF. 24, J. T. McAlister, Vietnam: The Origins of « Revolution (New York: Knopf, 1969), p. 226; cited in David Feingold, "Opium and Politics in Laos," in Nina Adams and AI MeCoy (eds.) Leor War and Revolution (New York: Harpe, 1970), p. 335. 25, George ‘Thayer, The War Business (New York: Simon and Schuster, 1969), p.'158, emphasis added, Even the US Govern ment Area Book Jor Thailand (Washington: GP.0., 1968), r6- cords of the KMT troops that "Their principal income allegedly ‘comes from serving as armed escort for the opium caravans moving southward" (to Bangkok) (p. 454). 26. G. William Skinnec, Chinese Society in Thailend: a Ane bial History (Idhacs, N.Y: Cornell UP, 1957), p. 289. 27. UN Document E/CN.7/213 (communicated by the US Representative), 17 November 1950, p. 9. 28, Ego statement of Harry J. Anslinger, then US Commis- sioner of Nercoties, before the Senate Committee on the Judiclacy, Mlicit Narcotics Trafic, Hearings, 84th Cong., 20d Sess. (Wash ington: Government Printing Office, 1955), p. 13; U.N. Docs. ‘ment E/CN.7/394, 29 April 1960, p. 2 29. US Congress, Senate, Committee on the Judiciary, Narcotic Contral Act of 1936, Hearing, 84th Cong., 2nd Sess., 4 May 1956, 1p. 34, Before the Tenth (1955) session of the UN Narcotice Commission, the US representative noted that from 200 t0 400 tons of opium were imported anavally south into Thailand across the Burma-Laos border, of which only 100 tons were consumed in Thailand itself (UN Document H/CN. 7/303/Rev. 1, P. 34)- 30. UN commission on Narcotics Deugs, Report of the Ninth Session (1934), B/CN.7/283, p. 22. 31. UN Commission on Narcotic Drugs, Report of the Thirteenth Session (1958), E/CN.1/354, p. 26, cl. p. 225 Report of the Fifteenth Session (1960), B/CN.7/395, p. 19, ep. 18. 32. UN Commission oa Narcotic Drugs, Report of the Fifteenth Sesion (1960), B/CN.7/398, p. 18. 433. UN Commission on Narcotic Drugs, Report of the Bit teenth Session (1960), B/CN.7/395, p. 15. 34, San Francisco Chronicle, 4 September 1970, p. 1. Pree Chine and Ada, a joucoal published by the KMT agency sesponsible for chartering the CAT fights, gave details of Yunnan military opern- tons and wrote of "plans to rise up in coordination with the ‘efforts of the Tibetans against the Communist cule, particularly ‘those in Yunnan and Sikang” (Free China and Asia, Jone 1959, P. 215 ef January 1959, p. 10). 45. Wilfeed Blythe, Impact of Chinese Secret Societies in Malaya (Condon: Oxford UP., 1969), pp- 190, 250. 36. CF. (eg) UN, Committee on Narcotic Deugs, Report of the Seventeenth Session, B/CN.1/432, p. 15. 37, Blythe, pp. 449, 441. 238. Blythe, pp. 441-42, 39. William Skinaer, Chinese Seciety in Thailand, An Analytic History (Ithaca, N.Y Cornell U.P., 1957), pp. 120-21. 40. Skinner, p. 337. 41, UN Document B/CN.7/210, 3 November 1950, p. 3. 42, H.R. Isaacs, The Tragedy of the Chinese Revalation (Stan ford, Cal: Sanford U.P,, 1951), pp. 81, 142-46; ¥. C. Wang, Journal of Asia Studtes, May 1967, p. 437; Blythe, pp. 28-29, 21. 43. UN, Commission on Narcotic Drugs, Report of she Bight canth Sesion, B/CN.7/435, p. 10. 44, Will Ovrsler and 1. D. Smith, Nercotis America's Peril (Garden City, N.Y: Doubleday, 1932), p. 87. 45, B/CN.7/394, 29 Apsil 1960, p. 8. 46, Ross Y. Koen, The China Lobby in American Poitice (New York: Macmillan, 1960), p. ix 47, Joseph Keeley, The China Lobly Man (New Rochelle, N.Y. Aslington House, 1969), p. 148, emphasis added, 48, Michael Straight, "Corruption and Chiang K: Republic, § October 1951, p. 12. 49. New York Times, 16 February 1961, p. 9; Siugapore Straits sek,” New‘Times, 20 February, 1961, p. 1, 50. APACL—Its Growth and Outlook (Taipeh: APACL, 1960). 51. Christian Science Mowitor, 16 June 1970, p. 83 cf. 29 May 1970, p. 14: “Clearly the CIA is cognisant of i aot party tO, the ‘extensive movement of opium out of Laos. Ose charter pilot told me that friendly’ opium shipments get special CIA clearance and ‘monitoring on their fights southward out of the country. The same source alleged two or three fights without this ‘protection’ ‘crashed under mysterious circumstances.” 52. US Note of 29 April 1960 to UN Commission on Narcotic Drugs, B/CN.7/394, p. 2. 53. B/CN.7/394, p. 1; Pree China and Asia, January 1959, p. 10. 54. Bernard Fall, Anatomy of a Crisis (Garden City, New York: Doubleday, 1969), p. 99. 55. The Thai police favoritism shown the KMT during 1952 1954 had been disnvowed in 1956; and Prime Minister Phibun stated ata publie press conference, “The Kvomiatang causes 100 much rouble: they trade in opium and cause Thailand to be blamed in the United Nations” (Skinner, p. 343). The next year Phao was ousted from power by the preseat military rulers of Thailand, id reports that Phao, "a sort of local Beria ... ran the gold exchange and opium trade” (New York Times, 6 Novernber 1957, p34). 56. UN Commission on Narcotic Drugs: Report of the Seventeenth Sesion (1962), B/CN. 7/432, p. 11. 57. APACL, Free China and Asia (October, 1959), ps 14 58. Free China and Asia, October 1959, p. 31. 59, In fact Veha Akkhat was litle more than a front forthe Nation: alist Chinese airlines from which i chartered six planes and pilots. On 19 February 1961, four days after the CAT/ECRA plane was shot down by the Burmese, a Vehe Akhat C-47 leased from # Taiwan company was shot down over Laos; four of the six personnel aboard were said to be Nationalist Chinese officers. (Bangkok Post, 22 Febroasy 1961, p. apore Siraits Times, 22 February 1961, p. 3). The same year Taiwan's second airline, Foshing, reported a decrease in its tir fleet from three C-47's to two. Foshing Airlines was headed by Moon Chin, a former Assistant Operating Manager of Pan Am’s China ‘subsidiary, NAG, under William Pawley. 60, Banghok Post, 18 April 1964, G1, San Francivo Chronicle, 16 August 1971, p. 12. 62, Tis striking chat in 1961, when the CIA inaugurated covert tir operations from Saigon against North Vietaam, it spurned ihe available planes and facilites of CAT at Saigon’s Ten Son Nhot port and set up a new, unselaced “proprietary,” "Aviation Investors, Inc," 4/b/a/ Vietoam Air Trensport. Vietnam Ait ‘Teansport is said to have hired Nguyen Cao Ky, then fired himn after learning that he used his “Operation Haylift” ights as 9 cover for oplum-smugeling from Laos to Saigon, 63. Staley Karnow once named a “debonsice, pencil-moustached Corsican by the name of Bonaventure Francisci” a8 one of the top opium-ruaners in Laos ("The Opium Must Go Through, Life, 30 August 1963, p. 12). The Fracise family has been linked 1 the Spitito-Ventuti arm of the Corsican mafia in Marseille, which in corn reaches to America theough Spndicate associate Vincent Cotroni of Montreal (US Congress, Senate, Committee on Goverament Operations, Organized Crime and Iieit Trafic in Narcotics, Hearings, 88th Cong. 206 Sess., Washington, G.P.O, 1964, pp. 956, 961; cited hereafter as Narcotics Hearinge) This (continued on page 94) 6 Must THIS show go on? Help us say... NO! EMT {THE NATION 333 Sixth Avenue New York, N.Y, 10014 C1 Ml join you for 1 year (48 issues). I enclose $12.50. 1 I'll try you for 6 months (24 issues), Enclosed $7.50. (Add $1 per year postage for Canads Mexico; $2 ofber foreign) State, Zip94 (continued from page 93) Corsican trafic dates back at least to the 1950's, according 1© ‘Martin Pera, « sentor Nacotes Bureau oficial: “When French Indochina existed, there were quactities of opium that were shipped tthe labs... around Marseilles, France, tothe Corsican ‘underworld there, and then tcansshipped to the United Staes” (US Congress, Senate, Select Committee on Impcoper Activities fn the Labor or Management Tield, Hearings, 85th Cong, 2nd Sess, (Washington? G.P.O,, 1959), p. 12225 (ced hereafter 48 ‘McClellan Hearing). 64, In 1965 Bird's ni feet was sold to Continental Ai Services, « hewly ceeated subsidiary of Continental Air Lines headed. by Robert Rouselot, CAT and Ait America yeteran, The sale price twas said to have been over $1 million (Wall See Journal, 23 ‘August 1965, p. 20; Continental Ailines, dnl Report, 1265, p.13:New York Times, 27 August 1964, p. 6). 665, US Congress, House, Commitee on Government Operations, US Aid Operations in Laos, House Report No. 546, 86th Cong, Int Sess. (Washington: Government Printing Office, p- 1959), 1.2; Hearingy p. 329; New Vork Times, 24 Match 1959, p. 19 66. New York Timer, 2 February 1962, p.8. 67. Saoley Katnow, Washington Post, 16 March 1970, A10. ‘Theodore Sorenson records that “Chiang war». vexed with Kennedy... over ove quiet pressure for the removal of his forag- ing force from Burma” (Kenedy, New York: Harper, 1963, p. G61) The KDA lobbied publicly for these troops w,be given the job of stopping communism as a “volunteer force” in Laos (ree China and Ais, December 1960, pp. 5-6); and were sip ported in the USA by elements in she Pentagon and American Security Councit (including Admiral elix Stamp, Aic Amecicr's Board Chairman). Western Laos was the aren of the celebrated “opium battle of July 1967, between 800 KM troops and the forces of the opiam-emugaling Laotian general Ouane. Rathi. couse, who also ures prominently fa the Laotian invasion faud of September 1939} Sau Francis Chronicle, 16 August 1971, p 12; Feingold, in Adams and MeCoy, Confer Laos, p. 323; Prank Browning aad Banaing Garret, “the New Opium War," Ram- ars, May 1971, pe 34 68. New York Times, 19 March 1964, p. 4; Banghok Pos, 20 NEW SCHOOLS EXCHANGE 301 East Canon Perdido St Santa Barbara, Calif. 93101 Sree tant schools of one sare or March 1964; New York Times, 27 August 1964, p. 6 Sonth China ‘Morning Post, 22 Jone 1964, p. 1; Sanrday Review, 11 May 1968, pid. 69. McClellan Hearings, pp. 15262-72, 70. Hank Messick, Leusty (New York: G. P. Putnam's, 1971), 2-89. In 1968 Citibank refsed to produce « §200,000 certificate Of deposie which had been subpoened in an investigation of stock fraud. (New York Times, 1 December 1969, p. 42). 11, New York Times, 13 May 1950, v.34. 72, Pawley, on the advice of President Roosevelt and Tommy Corcoran, set up the Flying Tigers under » secret presidential executive order, exempting him from the neutealty provisions of the US code (Anna Chant Chenaault, Chennenlt wnd tbe Thing sr, New York, P. . Briksson, 1963, pp. 76-83). Ta 1949) Pawley petitioned the State Department to secure similue author zation for the Commerce Internatiocal (China) mission, but was turned down (US Congress, Senate, Commivee on Judiciary, Gonmuist Threat tthe United States tbrongh the Caribbean, Hear™ ings, 86th, Cong 2nd Sess testimony of William D. Pavey, 2'September 1960, p. 729}.. Admiral Charles ‘Cooke, later member of the American Security Council proceeded anyway. 13. Washingion Pos, 9 September 1981, A1, AS; reprinted in Congressional Record, Senate, 10 September 1951, p. 1066-675 Reporter, 29 April 1952, pp. 10-115 Ross, p. 5. 74.7. A. Wise, "The World of Alexander Guterma,” Fortune, December 1939, p. 160, Also figuring in the Gucerma scandals were Mathew Fox, a former registered lobbyist for Indonesia With possible CIA connections. (Chester Cooper, The Lost Grae Jade, New York, Dodd Mead, 1970, p. 52), and William Bear & {former intelligence agent. Giserma himself came from Shanghal and the Philippines, and used Philippiaecapial to launch himself ingo Morida land development. 75. Theough Cheslr’s Seven Acts Productions, Led; of Messick, Lansky, p. 228; Bd Reid, The Grin Reapers, p. 107 76. Messick, Lawsy, p. 201, 77. MeCTellan Hearings, 122462 78. The company's president was an officer forthe realty invest. ‘meat interests of Lindsey Hopkins, J, himself an oficer of CIA proprietacies in Miami eg. Zenith Enterprises and Mela, Ine. Inthe 1960's). As a director of Specry Corp, and its subsidiaries, Hopkins had been iaked co Willem Pawley’s establishmen: of the Flying Tigers in 1941 (Cheough a Sperry subsidiary, lver- continent Corp.). Through the Catl G. Fisher Corporstion, Hop- kins iaheried a fortune in Miami Beach hotels, end cook part in the postwar land boom in the Babamas. One of his business associates, the former singer Moston Downey, was also involved jn'a Las Vegas casino 79. New York Times, 1 December 1969, p42, 80. New York Times, 14 August 1959, p. 14; Messick, Lansy, ps 263, Allan Dorfman, whose fciendship wich Hoffa helped win the ‘Teamsters’ insucanee contract for US Life in 1930, has vecenly heen indicted for accepting kickbacks on Teamster loan to the Neisco. Corp. (San Prevefico Chrovile, 13 July 1971, P. 3)» 1Nelsco's Chairman G. A Hosvath was Board Chateman and prin: cipal owaer of the Miami National Bank in 1964, 81. The Thai King's general counsel in New York feom 1943 10 190, Carl O. Hoffmena of OSS, is today Board Chairman of the Fist Horida Resoucee Corp. 182, Reid, Grim Reapers, pp. 225-26 83, Reid, Grin Reaper, p. 296. 84. Messick, Lensly,p. 241. 85,1n March 1970, for example, Ait America flew in several hhundzed ‘Thai troops to defend the CIA's Meo ovtpost at Long Cheng (New York Times, Apel 1970, p. 225 Hight Inreationah 16 July, 1970). 186, Biot Marshall, “Heroin; The Source of Supply,” New Re: dublic, 24 and 31 July 1971, p. 24: "Shutting down the Turkish plum route. i likely ¢o'do no more than deve the industry Ferdher east”