DRUG SMUGGLING ARMY AND CIA INVOLVEMENT IN THE USATED L. GUNDERSON, F.B.L SENIOR SPECIAL AGENT-IN-CHARGE, RET. 2118 Wilshire Blvd, + Suite 422 * Santa Monica, CA + Ph: (310) 364-2280 * (310) 650-8674 PROFESSIONAL EXPERIENCE 1979 - Present TED L. GUNDERSON & ASSOCIATES, Santa Monica, California, Founder, owner and operaior of this international security consulting and investigation firm, Hosts the “Ted Gunderson Intelligence Report” radio talk show, weekdays as follows: 1. American Freedom Satellite Network, GE1 103° West (2°to the West of Space Net 4) Channel 7, Sub Audio 5.8 Frequency OAM to 12PM Central Standard Time (C'S.T.) 2. WWR Short Wave Radio 12.160 Frequency, 11M 1012PM (C.$.T.) 1984 LOS ANGELES OLYMPIC COMMITTEE Security and Anti-Terrorism Consultant 1981-1982 CALIFORNIA NARCOTICS AUTHORITY. Appointed by Governor of California as Narcotics Consulting Agent 1979 PAN AMERICAN GAMES, San Juan, Puerto Rico Security and Anti-Terrorism Coordinator Special Appointee of United States Attorney General Griffin B. Bell 1951-1979 FEDERAL BUREAU OF INVESTIGATION 1977-19 Senior Special Agent-in-Charge, Los Angeles, California 1973-77 Special Ageat-in-Charge of Memphis, Tennessee and Dallas, Texas 1973 Chief Inspector 1965-73 Assistant Special Agent-in-Charge, New Haven, ‘Connecticut and Philadelphia, Pennsylvania 1960-65 Special Agent Supervisor, FBI Headquarters, Washington, D.C. 1951-59 Special Agent Received many other awards, including Law Enforcement Officer of The Year. Author of “How to Locate Anyone Anywhere Without Leaving Home” (Penguin Books 1989) and other publications, Has appeared on numerous radio and TV shows including, “Larry King Live”, “Geraldo”, “48 Hours’, “Hard Copy”, “Inside Edition” among others. Currently forming an organization known as “Cutrent and Former FBI Agents For Honest Government"ARMY AND C.I.A, INVOLVEMENT IN BRINGING DRUGS TO THE UNITED STATES FROM VIETNAM A ReportDRUGSIn 1880 an informant told me that drugs were being flown into Army bases from Viet Nam in the late 1960's and early 1970's. I visited the library and researched the aubject.- To my surpris there haw only been one article written on this topic in a nation- al publication, (See attached Time Magazine article ganuary 1, 1973). I have been told by informants that the Army personnel involved in this operation, who were subsequently prosecuted were a minute per- centage of those active in the drug operation, I have also been told that some high ranking Army officers who were in charge of this drug ring have never been identified, tnformants have advised that the Army investigation of the operation was controlled and manipulated to conceal its magnitue and the extent of particips- tion, If true, this accounts for the Arry drug cover up of the MacDonald murders as described by Helena Stoeckley. Helena Stoeckley advised that her Satanic Cult group planned the MacDonald murders Halloween night 1969. At that time MacDonald vas assigned to the military hospital in Fort Bragg, N.C. but was moon- Lighting for extra money at the civilian hospital in Fayetteville. most military personnel sought treatment for drug overdose at the civilian rather than the military hospital to avoid a dishonorable discharge. someone at the civilian hospital was reporting these individuals to Army officials and they were cisnonorably discharg- ed.Stoeckley told P.£, Beasley, a retired Fayetteville police officer, that her Satanic Cult group was trafficking drugs during this per- ied, (Stoeckley was an informant for Beasley at the tise), one of thelr members delivered drugs to New york City every other week. The group planned and carried out the MacDonald murders without the knoviedge or approval of the drug community which included a number of civilians (at Je. t two attorneys) and military personnel, Stoeckley told Beasley that the leaders of the Fayeteville/rort Bragg drug network felt that their operation would be exposed if the Satanic Cult group vas investigated for the murd So they franed Dr, MacDonald. Stoeckley told Beasley and me in October 1980 she would “drop a bombshell and “tell all* if given immunity, 1 asked the Department Of Justice for immunity for her. When Dr. MacDonald's new defense attorney (a forner Assistant U.S, Attorney) learned about this in 1982, he wrote to the Department of Justice and told them to di regard my request. There was never any follow up, toeckley died in January 1983. She had been dead in her apartment for four days. She was nude from the waist dovn, the kitchen faucet wes running* and her six month old child was alive on the floor, “According to informants, Satanists almost always leave a satanic sign at the murder scene, Running water is a known satanic sign,According to the autopsy report she died of “slight* pneaonia of each lung and cirrhosis of the liver. (Normally this fea Linger- ing death not a sudden death); A week before she died she vas beaten up in a parking lot and told to keep her mouth shut. our days before she died she called Beasley who lived five hours away and told Beasley she had an emergency and must hin tmnediate- jy. Beasley called Macdonald's defe attorney who forbid him to go to Stoeckley.On May Sy 1986, P. E, Beasley, retired Fayetteville, vor Carolina police officer advised that Helena Stoeckley was his drug informant fron 1968 to 1972, Helena told Beasley that drugs, mainly heroin, were being smuggled into the United states in the body cavities of the dead soldiers from Viet Nam. These drugs were being brought into the country in U.S. Army planes. Stoeckley furnished this information to Beasley prior to the MacDonald murders on Februaty 17, 1970, After the MacDonald murders, Stoeckley told Beasley the drugs were placed in the body cavities in plastic bags after the autopsy in Viet Nam and before the bodies were placed on the airplanes. The bodies were then sewn up and shipped to various U.S.Army air bases in the U.S., including the air base at Fort Bragg. Stoeckley advised that these who handled the bodies in Viet Nam and the U.S. were army personnel, Most of the drugs cai Stoeckley stated she could give names, dates, places and nore @etails after she was given inmunity by the U.S.Government. She stated military and civilian police officers were involved in this net work. Stoeckley advised her Satanic Cult group that murdered Colette MacDonald and MacDonald children were involved in this international drug network. army authorities were concerned that an investigation of Stoeckley's Satanic Cult group involvement in the MacDonald murders could expose this international drug network. &3/5/26 Fayetteville, Nic. I, Prince Everette Beasley, make the following free and voluntary statement to Ted L. Gunderson, a private investigator from Los Angeles. No threats or promises vere made to get me make this statement. i vas born 6/15/25 at Maxton, N.C. I presently reside at 104 Myra Rd., Raeford, N.C., 28376, Phone: 919-878-3693. 1 am a retired police officer who served on the Fayetteville, N.c. Police Department from 1953 to 1973. Helena Streckley was my drug infornant from approximately 1968 watil 1972, She was turned over to me by Lt. R.A. Studer, Fayetteville, N.C. Police Dept. He turned her over to me because Helena's parents were mad et him for working Helena in the drug community, and because he was made a Lieutenant, and couldn't devote the necessary time to working with her. Studer told ne the reason he turned Helena over to me vas because of his promotion. Helena told me he turned her over to me because of the problen vith her parents. Shortly after I was assigned to the Narcotic Squad, Helena told me that drugs, primarily heroin, were being smuggled into this country in she body cavities of the dead soldiers being returned by air from Viet Nam to the United States. She named Ike Atkinson as the ting leader. Atkinson was located in Goldsbero, N.C.. supposedly working out of Johnson Air Force Base. Helena told ne they were smuggling drugs in the same manner inte Johnson Air Force Base. Johnson Air Force Base is located at Goldsboro, N.C. She advised Atkinson was in the service, but subsequently got out and continued his business in drugs with the same contacts. T @idn't pay much attention to Atkinson because he wasn’t in our jurisdiction. The above information is all that Helena told me up to the time of the MacDonald murders in 1970.deiene rold me after the Macdonald murders that there vere contacts in Viet Nam who put the drugs in the C.T.'s podies, in plastic bags, after the sutopsies were complete The bodies core sewn up and shipped to Pope Air Base, Ft. Bragg, Johnson Mr Base, and other bases which she did not name, when the bodies arrived in the U.S., they were met by # contact in the United States at one of the military bases, and after the drugs ware removed by this contact, the DodSes were sent to their final destination. the person who net the bodier at the respective Air Bases knew dnich bodies: to’ check, based on a pre-determined code. . Aithough t believe Helena knew their identities, she never gave me this information. Helena told me that the people who handled the assignments in Viet Nam, and those who met the planes in the pnited States, were military personnel. She stated most of the drugs came from Thailand. Helena stated the drugs and the pickups vere made at the base at Fort Bragg. The reason she gave me more details after the MacDonald murders was because she wanted me to know that she new what she was talking about, and she stated she would give me details, including names, dates, and places, once she was given innunity by the U5. Governent. When Ted L. Gunderson and I initially interviewed her, we told her we would attempt to get immunity for her on these matters. Helena advised that Spider Newman, his son, Red Newnan, Wineford (winnse) Cole, Tomy Hart, and June Bug Walters (1 don't know Walters’ real first name) vere severel steps in the organization under Atkinson. All of these individuals were civilians who operated in the Fayettville, N.C. area, selling drugs. None of these individuals had a business cover, but sold drugs out of their house. cose of us in law enforcement knew through our intelligence conmunity that Atkinson ran the Viet Nam smuggling operation on the Eastern Seaboard. I believe Atkinson was arrested by the (2Federal Narcotic authorities in the middle 1970's, and he is Presently serving time, He was recently turned down on parole. Spider Newman was being tried for drugs in the mid 1970 There was a court room break, and he was later found in his car behind his home, shot in the head, I later heard that Spider was getting ready to turn states evidence when this happened. The police ruled this a suicide. His trial vas in Federal court. Red Newman has been tried on drugs, and is serving time in the Federal System. Cole went to State Prison on drug charges in Fayetteville. Winford Cole, Tommy Hart; and June Bug Walters vere all tried and convicted of drug trafficking. I believe they vere all tried in local and Federal Court at different times, I don't know 1£ Cole and Walters are in jail now, but I know Hart is in the North Carolina State Penal System. In regard to the Viet Nan operation, Helena told me that military, civilian, and police officers were involved in the Viet Nam drug network. She stated there were two prominant: jocal attorneys and Army officers as high as Generals; who were part of the operation. She stated she would mame and identify the people if given immunity by the U.S. Government. I believe this is part of the “bomb shell" she said she was going to drop. Helena never named the police officers she said were involved in the Viet Nam operation, but she did state that Studer and Sonberg were involved in drugs. Possibly these are the individuals she was referring to in regard to the Viet Nam drug network, who were police officers, Helena also told me after the MacDonald murders that Alan Mazorelle, who was in her coven Satanic Cult, was a Grug runner up and down the East Coast. Mazorelle took érugs as far away as Florida and New York city, Mazorelle was in the Army at the time. She never said where Mazorelle obtained his drugs. Helena also told me that Don Harris, also a member of her coven Satanic Cult, was a heavy user of drugs, This is ‘all she said about him. (che Helena told me that Dwight Smith vas a drug dealer locally, she never said where Smith cbtained his drugs. She said Smith was an “alright guy. Helena told me that Kathy Perry was a user of drugs. she said Perry took as many drugs as she could get her hands on. she said Perry dealt drugs only to maintain her habit. Helena told me that Greg Mitchell vas a dealer and a heavy user of drugs. She never gave details regarding how he dealt, but she stated anytime someore couldn't find drugs. they could always go to Mitchell, and he would have them. At times, he would supply the whole group. Helena told me that Eruce Fowler was a drug dealer and a user, and that she was his girlfriend. she never gave more details than this. + Dwight Smith, Don Harris, Alan Mazorelle, Sruce Fowler and Greg Mitchell vere all in the sane coven Satanic cult with Helena and were all in the military. She stated that all of the above were dangerous, but she was the most afraid of Mazorelle. she stated Mazorelle would kill you in @ minute. T had extensive intelligence files on all of the above close Associates of Helena's, but this information has disappeared fren the Fayetteville Police files, I learned these files disappeared in August. 1979. During the MacDonald trial I was given a subpoena to bring these records to the trial, It was then that I learned they were gone, In 1981 oF 1982, I talked to Mrs. Greg Mitchell, after Greg had died. She told me Greg had previously told her about drugs being smuggled into the U.S. in the body cavities of the dead G.I.'s from Viet Nam. She stated Greg didn't give her the names of persons involved, but told her about the contacts in Viet Nam who placed the drugs in plastic bags, into the bodies, end others in the U.S. at our Air Beses who met the planes, and took the drugs from the bodies, She stated military personnel were involved in this operation in Viet Nam and /n the U.S. pe3. Lieutenant Studer told ne in 1968-1969 that drugs were being brought inte the U.S. from Viet Nam in the body cavities of the dead soldiers. He said they were being flown into the United States to the military Air Bases, and dispersed from there by contacts within the military. Studer subsequently vas promoted to Captain, Chief of Detectives, but was forced to resign because he misappropriated pornographic material obtained during an investigation. Helena told me that Studer monitored the drugs that Helena obtained, and if he didn't Like them he had her exchange those drugs for drugs that Studer could use. Helena told ne that if the police obtained drugs on an arrest, they would often be on the street the next day, Studer would take the drugs and give then to Helena to sell back on the street. The only vay I know that Studer could get these drugs vas from the evidence roon. Studer and Detective Larry Sonberg both had keys to the evidence room, Helena told me that William F. Ivory, ¢.I.D., and Studer were close friends. she stated that Ivory was dealing drugs with Studer. She stated she would give more details concerning Ivory if she was given inmunity. Ivory was involved in the crime scene search on the MacDonald case. She also stated she would give more informatio: on Studer if she was given inmunity. Joseph Bullock was an informant and undercover operator for me and Studer from 1969 to 1971, Bullock advised me that he saw Studer and Ivery exchange envelopes on occasion at the Dunkin' Donuts, Bragg Blvd., Fayetteville, N.c., during this period of tine. Studer dropped Bullock shortly after this because, according to Bullock. Studer knew too much of what was going on. Bullock was subsequently shot in the head during an ambush when he came home from -vork. It was general knowledge in the community that Bullock was an informant for me. Bullock deseribed Studer as a “son of a bitch.” Sonberg left town unexpectedly, shortly after the MacDonald murders. The rumor was that Sonberg had double-crossed some drug dealers, and had to leave town. Helena told me that Sonberg was dealing 1sdrugs even though he was a police officer, 1 have no knowledge that Sonberg was involved with the drug operation out of viet Nam. Helena once mentioned the name Procter to me, I don’t recall what was said about him, but I know she knew him. I assume she was referring to James Proctor, Judge DePree’s former scn-in-law. I don't recall if she referred to Proctor by his first name, She mentioned this sometime after the MacDonald murders, She id she would talk more about Proctor if given immunity. Helena told me that 3 or 4 nights after the MacDonald murders she was picked up by Ivory and I believe ¢.1,D. agent, shaw. {I don't know his first name.) She stated they talked to her about the MacDonald murders. Helens advised she gave them a story that they didn't believe, and they turned her loose. Helena told me that Studer contacted her shortly after the MacDonald murders and Studer told her to get out of town because Beasley wes after her. She ultimately left, and went to Nashville, Tennessee. During the time I worked with Helena (1968 to 1972) T estimate that she was responsible, as an informant, for the arrest of hundreds of individuals. TI estimate at least 200 persons or nore ware arrested as a result of information furnished by her. Sha set up Mazorelle and Thomas Rizzo for the arrest on drugs just before the MacDonald murders, When I looked for the intelligence files on the Stretchly group in 1979, T recall also looking for the arrest file on Mazorelle and Rizzo for their arrest. I recell they were arrested in January 1970. 1 remember that these arrest files were intact at that time. I have since been told that the arres files on Mazorelle and Rizzo are now missing. Tt 1s interesting to note that Mazorelle claims he was in jail the night of the MacDonald murders. He claims he can prove this from Superior Court records in Cumberland County. 1 have been told there is a slip of paper in the court records that shows Mazorelle was in jail the night of 2/16-17/70. These records are available to the public, isT know Mazorelle was not in jail 2/16-17/70 because I arrested him in January 1970 and recall that the trial was set for Mazorelle the day of 2/17/70. If Mazorelle hed been in jail that date (2/16-17/70) he would have been available for trial on 2/17/70, and I would have appeared in court as a witness. John De Carter of the Sheriff's office was with mé in the arrest of Rizzo and Mazorelle and he would have also had to appear in couct 2/17/70, ft specifically recall that r dia not appear in court on any case at the Cunberland County court House on 2/17/70. Twas on the street all day looking for suspects on the MacDonald murders. T don't recall that Mazorelle was out on bail, but I believe he was, oF he would have appeared in court 2/17/70. Since he aidnit appear I believe he jumped bail, which means a bench warrant vould have been issued for him. 1 recall he vas subsequently arrested in Waycross Georgia for burglary, but I have been inforned through my sources in law enforcement that the Waycro: records are also missing, arrest I recall that a bondsman, C.B. Avertt, vent to Waycross to extradite Mazorelle for jumping bond on my drug arrest, 1 talked to avertt in 1979, and he told ne that he didn't recall making the bond and had no record. 1 talked to hima month later and he recalled shat he made bond for Mazorelle for $2500.00 after the MacDonald murders, which, according to him, would confirm that Mazorelle was in jail the night of 2/16-17/70. avertt is either involved in the cover up or is mistaken, Mazorelle‘s bond could not have been made after the MacDonald murders because the trial was set for 2/17/70, as explained above. 7 don't have knowledge concerning the possible altering of Court House records concerning the Mazorelle-Rizzo drug arrest, but I recall a number of occasions when Cumberland Court House records were altered after working hours at night. £ don't believe Mazorelle was in jail the night of the murders. :In addition to the above, Helena told me that Mazcrelle was out that night and involved in the Mactonald murders. In regard to cases that Helena made for me, I recall that she was responsible for the largest drug recovery in the history of our police department up to the time I retired. Several months before the MacDonald murders, she tipped us on drugs that were being transported from Canada to Fayetteville. Seven suspects were arrested, and over $20,000.00 worth of drugs were recovered. Helena was also responsible for the arrest of four suspects from Texas, who were also transporting and selling drugs in Fayetteville. We recovered about $40,000.00 worth of drugs on this case. Helena told me about every instance where drugs came into Fayetteville from other areas. At the time I didn't think about it, but I now believe she told us about drugs coming from outside Fayetteville to eliminate competition, probsbly protecting the local drug scene, i.e. The Viet Nam operation. ‘This is my opinion. Judge DePree and the U.S. Governnent have attempted to discredit me, insinuating I am having, and have had mental problems. I would like to point out that I have been on the Police Officers Advisory Commission for North Carolina since before I returned from the Fayetteville Police Department in 1973. I have read this @ page statement, and it is true and correct, to the best of my knowledge, Prince £, Beasley Ted L. Gunderson 5/5/86 Fayetteville, N.C. \ycane Coffin, aud Corruptions The tinerarase af the ict narcoven uate brine vith let of perniclowsly [eel probealy be a long lie, howe Le heloce any noe Caplery can top Sic tee now wnpoldine ( eliewed that traficker end couleutn] Aumrticun servicemen Ui tmwrate drest into the US, from Smiheast Asia {a the second, huge (inet of heralm confiscated by the Kee York patie department lematieally noken. put Back into the linet trace, ued mu] ROW be a tource fibers forthe tellaps, Hetewith re poten the two cai Grisly Smuggling = It ooked Hite w trom Southeast Aca "lam Fria ef Dover rare Aboard the KC-135 were 64 pas many of them Gla and two Aly coffins Suddenly the plane was iréered 10 reroute ishily and land at (ncrewt Air Fotee Bete 18 Maryland, ners federal suihotiien, acting on & |p tat 20 Flos of heroin were aboard, Truly took the ranapon apa. They not hed any drupe but they did cise ‘over at one of the twa bodies which fd undergone aulopyy elie, hud te Sl. 0f Caste Hayne, TC who was drened in the uniform EXUS- Army sergeant Southerland, tbo fahcly cliimed be had served 4 wiveyes led on charges of impersonation and ing fake document, Southerland was araigned in US distie court in Balimore ted ted ia feet $5.00 oat at acemed ct thi for the formal charger bee Hant US Adocmey Miensel © Mare trade the Sut iek by convincing a fret court last weet that Souceriend sian “incredibly high bad pak The Teavont (ederal autre belts Dat ‘Scuoveland an spersie in 29 icrotfonal ring tat tegeay hes bora ousting milfors of Sian wort of Fern into the US over the pan eight Jeart-The principal may reraporte -Tpeeiastors contend, 8 GL eacavern, “The rly logwuct ae roan de felt ts hey may appeat to be Sue hen with acount malay. facies Sbpercnly have managed tow te TiRin into the corpus in, Southeast Sie Whe de body count low ese dex heny wes fowiobringina Gheeache of erage The amupglen can So thiewas well ental back ae forc, ft wilby dint of exnterfct eden Tak Ga tha fpr e beets was pre fSnibly Temoted at Hickam eid Shere many miliary vaneports (rot Indochina top for 16 0 24 hours bee fore proceedog to the maaiuod. The planed here art ter nial pare “ince there ape eo ciors per ion thi it telatiely cay. AvthorGer {Sumate that the hing buys the drug Southeast Ara for 517003 ko andre delet in the Sats for upto 3250,008, AA fullacate inwewiyaton under way Scthin tee US ant i Southeast AE Thi bear out tree canpesone the tation alsendy bei Gy the tony onficrwil And hell face to foe Sih the mont widows case of ware protisring inte Bitory.1 alae iit pe BEG vaps at i a ae malteba atige Hi lade ae ae CEs al ie Tae eG Ty oe a Hetil ee SETS mH ee Huh 1p ge eee Ye The ET 4 nee Hl ae eae fall : tat Hit Wel a is ahi ae by cee we = Will a Bizarre Suit Become a Watergate of the Jungle? (Ge omen Tew Oat ie May 3 TW ek, appease LE a aa a PUREThe following articie appeared in the April, 1968 issue of INTERVIEW Magazine: Note Mr. Daniel Sheehan states the CIA flew drugs into the U.S. curing the Viet Nam war, If the Army and the CIA flew drugs {n- to the U.S, during this period there possibly was collusion be- <2 tween members of these agencies. ‘9ERIC ALTERMAN: So you're geing to nail the “secret team” in cour, Lal's siart at the beginning. We've got « bombing that « ‘tokes place when? DANIEL SHEEILAN: May 30, 1984. EA:.Contra leader Eden Pastora, who's riot cooperating with the CIA, ‘at his press conference in La Penca, Nic 2regua, just over the Coste Rican borden, Three journalists are killed * DS: And five others—nonjournalicts. Eighteca to twenty-four people are seri- veasly injured, We don’t know the exact sum, . : EA: Pastora te injured but nok Killed. The United States blames the Sandinistas. 2S: The Unlied Siztes docse’t do any hing. The Reagan administration—ex- ecutive branch, Sute Department, and CIANall secuse the Sundinizas, " "A: Your client, ABC comeraman Tony Argan, ls lnjured in the bombing. He ond “wife, {ellow journalist Manha Honey, such en lnvexiigation for the Comminiee 2 Protect Journalires; they name Joba ‘full as the mon who facilitated the 2S: That's right, 1A: don Hlull sues them for libel. 2S: Brings an acturl criminal charge “gainst them in Costa Rica. * ‘A: And loses, Enter Danny Sheehan? OS: Right. 1 sald to Tooy and Martha, “Look, you ought to continue with this. ing, soe them ia the feden!'court i Aiarci, We'll 60 that foc you." la May of 1986, they reained the Christie lastiunte 10 repairs a civil ease against 29 poople who onepired to blow up the press Gonfereace. Aor: broadly, we are charging under the Racketeer Inibeoced and Corrupt Organi aoas (RICO) Act that ibese 29 people cqunted a “criminal racketeering enter: cise” that engaged in drug smuggling, runrunsing, political assassinations, yooey laundering, and other criminal acts 1 mupport ofthe contras and earlier covert nas. . oe Under the RICO Act, we are given road powers (0 subpocs and examine ese people's business records and other ransactions. Under RICO, in orderto have landing (0 prosecute the syndica vember of the syndicate or one of feu ceranis has to have injured you in your commercial activities. A cameraman’s uipment was blown up and his business rocked, We've got sanding, then, (0 50 \ter the peopie who bombed him, We're ‘ing after people like John Hull, Felipe Fidal, Ren€ Convo, the Villaverde broth x7, Ramén Palacio, and others. We talk ‘bout the detailed mectings that took place > plan the bombing, We name wie was vere, We're saying that they used C4 plosives. which were part of the syndi- caie's shipment of arms to mount an illegal war aprinat Nicaragua, Pastors was inthe way, Membert of Uv syndicate took tops ta eliminate him. EA: This is the CIA? DS: This is men in the CIA. There's a ‘group of men within, and around, the CTA, who've been involved together in covert activities since the passage ofthe National Security Act in 1947, which set up the Central intelligence Agency. Clark Gifford {Counsel to the President under Truman} sisted expeessly that there was ever any intention to allow members of the CIA the right to engage in covert ne tions, What happened is that feld oper. toes in the agency decided to games that authority for themselves. But we can't really get at any of them because weren't directly involved in the supply of miliary equipment that Injured our cli- conus, We uracked as far back as we could, 10 1959, t0 find the guys who were directly Involved. We saw very clearly that they had uadertaken a virtually identical oper tion against Cuba. EA: This isthe “secret team"? DS: Exacly right. They eroeied into a soully black area when they decided to set pa secret aseassinution program to elimi- sate Casto. In order to dtguise it, they ‘worked with the Mafia: Sento Traffcanti, Johnay Roselli, Sem Gianeans—these ‘were gunden-variety Mafioei. That way, if any part of their enterpeise was ever ex- Poted, people would say the mob di i. It Sete saeeraeecs . ial Sine If tey odd easane Caste the payoft would be that the racketecring syndicate could reesabich iuelf in Cubs. dida't work, but these people estab ished relationships with the Mafia. ‘There's a bt of information that the Mafia hhas access to which is of importance to a ‘covert operations group. It's a whole mi- Tieu in which to move. Theodore ran the operation. It was shut ce. “EA: How do you know that Clines was his 2 DS: Clines was the director of taining. 1 Know that because I've talked to Carl Jenkins, a fellow CIA agcat, who trained the guys oa the ground, Clines took over from Jenkins, Shackley went over to Laos. {know that from talk IA people in TS_ Army who met with him. |know that Trom talking to Jerry Zellman, chiel Trom talking to Jerry Zeilman, chiel put Su DiBEKIEY Wren ne B30 poRtoies Fras aro rete Ure Out who he was going w beingin. He ee ase tories te omit a shiumwatocd tamed Vang Pio oto “Tonal wart ane Date eo iness were mysierously axtasmealed, Ging Pao wad aly GCM OE ae monopoly controller of opium ia exfiange for his services. It was a very sabiicand ‘smooth operation. Shackley, Cimemand ~* Olllic’s buddy Richard Second didettrwant the communist Pathet Lao {the Lamon equivalent of the Viet Cong] o comeinto power. They told Vang Pao, “Wwe got ‘tome trainers here-Cadt Jonker, OB@Chi Fitna wad Dicorin Cher, Theyea> aaged ia an “overt” covert opcarian, which essentially consisted of tmeting down the keadership of the Pathet Lacuand “covert” covert section, which emasi- nated them #1" °° EP Basically the whole program ia Simeth- east Asia ran from '65 io 75. Excetesgh — ‘Shackley and Clines bounced outalithere “== for a two-year period, from "7 1a "— whea they were back at CLA beadgmsters in Langiey, Virginia, doing Westeraifemi- ‘sphere suff, which was primarily Chie— ‘by September of "73 they were api in charge of Far East operations. At that point, Carl Jenkins asked for earty etize- meat from the CLA. He went to Australia. ‘Thea Richard Sccord started showing up > ig Australia. Cal Cai Quiatero axrted showing up in Australia. Tom Clices: ‘started showing up in Australi vel Hand, a former Greea Beret, started! i Ae ia, Te ee at ice eae Nt iand Bank in Sere ee oe Tavesipative report on the Nugat-Hand Bank to prove it, We've also gat direct information on the tonnage, of weapons removed from Vietnam during thelist two years of the war and brought to aa indoor ‘air base in Thailand. You've got moncy ‘going down to Nugan-Hand and weapoory going to the air base. EA: So these men in high positions in the Ctkare smuggling heroin out ofLaor and te eee Hand, end er ‘DS: That's right, EA: John Stockwell, Ralph McGelee. and Frank Snepp—dissident ex-CIA egents— shave problems with your thesis at this point, They attribute the transportation of heroin ond the smuggling of guns directly 10 the CIA. DS: They're saying that this is definitely the CIA running the operation as a maiter ‘of policy. I don’t know that to be true. If HLacking me (oF being more conservative 8 my charges than they are. They're saying thatthe CLA did i, I'm exying that all 've ‘otis that these men did it EA: Pick it up from shere. DS: At that slage, from 1971, when che Phoenix Project was.cxpoced, 10 1976, which was the year (6 elect a new presi= dent, there wat a whole chain of public revelations about covert operations by Senator Frank Char «Sleet Commies to Study Government. Operations, Not just the Phoeaix Proc oc the Cuban Buf ba iso domestic covert operations: FBI ‘Splicer, nd rT ‘CIA pot io over ist ncesid To cverthrow elected socialist nresidens EE ae ot STE, shackle, who was be ec ate deputy director for operations —this is, a cavey gry We're dealing with—tays, “We've got potential big trouble here.” He calls a meeting, off the record. A conver tation occurs ia the winter of 75 10°76,in the armored limousine of Richard Second, Edwin Wilton, who's siting there, says “What if Carter gets elected? Whai's going to happea to our operations? We're going to have o set up some tort of opera- tioa “outside,” because we know how e- sential these activities are.” All the steps being taken—shipping the weapons to ‘Thailand, the money to Australia—are “preparations.” In my opinion, they are not a “back channel” for the agency. They are preparations for aa “ollthe-thell" op- ‘eration. if it becomes necessary. EA: Like thas described by Ollie North at the Iranfecors hearings? DS: Exactly. After Carter was elected ia November of 1976, Sbackley, Clinés, Second, Erich oa Marbod fessinant seo. retary of state for Far Easter offers une der Kissinger}, and Wilson met at the Coyeal City Marriot Hotel. They si, “Bingo! I's happened. We're looking ata reform administration here. This meant curtains for our operation, We're going to have to set up a private company tobe able {0 continue.” And they set up the Intema tional Research and Trade Corporation (IRT).One of Wilson's attomeys marted setting things up over in Switterland; they set something up down in the Grand Caymans, They set up the account in ‘Switaertand; IRT became partners withthe Exyptins-Ameriean Transport and Service ‘Company (EATSCO). Clines came out of ctliwer for IRT which later became EATS CO, hecause EATSCO owned St percent SCIRT, That's theie operation, The port= nem were Shackley, Clines, Second, wa Marbod, and Witsin, EA: Thi company wus set up ta treutsfer farms ta Egypain the afternatl of the Cany Duvid Aevord? DS: That's right. This is the “off-thee shel operation. EA: Tell me ubout their connection to the Shah em Somora, - ‘The fink between tran and Nicaragua ix really w fascinating one, Wilson was He was supplying electronic surveillance ‘equipment 1o the SAVAK, the Shah's se= cret police, to help them in their search aed-desiroy missions against alleged ter. roriats opposing the Shah EA: Offcsally or uncficiclly? . Wot he on the CIA payroll wh SGeoine Bush wes the recor ane working for Clines and Shackley in Iran.” = allo real tive serorisi raining bese DS: The executive briech wotld, Th were directaction test. I'm not ait potition on thite good or bad. | 's group is assassinatng tv Wiltoa is told to pass te inforration the Nicaraguans being tained in Liby: Chi Chi Quintero. EA: Who wet Chi Chi Quintero work ‘foot yroll wh No, Fe worked in the scart at anal who was i Bush at the. DSO teegh 176, Bu Won. apne under Gen esate funding was axed because he woulda't 25° OC 197 Cartrest off rit reveal what the program was about. How: "” equipment and further itefigence in| cere, in 1977 Wilson discovered that be mada to Somaca, tn Febceary of 17 ‘was sill being funded—by someone else. "Wilson, Clinez, Doug Scblachter- He was working directly for Shackley and -“Joagtime Wilsod ssseciato—Quinte lines, who were both sill in the ageney. - and Good-Time Charis Wilsoo—a cx EA: So Wilson was unwittingly worting for, gresmman from Texas—Eyio Nicaragus « peiwste company and no longer for the | mest with Sorooza and offex him a de US. goxernment? they're going to give him ieeligeoce DS: Wittingly or unwittingly—with | formation oa his opponeats, coming it Wilson, it doesn't make much difference, Nicaragut, who ooght tbe sssassinatc ax long as he thinks he's covered. He's They bave'a tpecia! socarity eam of doing that operation. He's going with " mem, paid $80,000 apiece, beaded up stem when hey bust all these people— Cal Cai Quintero, We've got the pape: they line them up and blow them away. the contracts, everything, And they off ‘They kill them, one right after anothes, “to sell Somoza the weapoes that hve be time after time, mission after mission, He "et ofl. They carry 00 acgotiations for knew exactly what was happening. ‘yess from February of 978 to February EA: They were opponents of the Shak? | 1979. The deal is closed by Chi Chi Qui (DG: That's right, Then they discover that " tero, How do I ksow that? Because Qui there's a group of Iranians being trained ero told Cart Jenkins about it in dea comide Ive who wre coming beck into the | EA? Why do you think Jenkine ove coumry and assassinating the SAVAK his information? teaderthin Shactley and Clines tip Wilhon DS: To try to protect the CIA. He eat that they're being trained somewbere ia” down in a mecting withthis guy Ferzus bya, Wilton moves ia wich fellow CLA the deputy of Bob Gites (depury dire: agent Frank Tepil and the others, who first of the CIA}, who said, “I wast you sar supplying slow fuses to the Libyans, understand this: Shackley's operation then C-4 expiptives, then trainers to use not the C1A's. If you're goiag-o sac h eC, assassins, anditgoesoa let the chips fall where they may. It: vp the bierdrchy until Wilson can locate us.” : the base. He finds the base, He gettaPLO So they've got 8 major assassinat ‘contact fo tell hima when the next group of -”*epertion going on down there in Cen five people are leaving Libya for Iran. He” America, They started to mupply eqt ess the [ale names on their passports and "meat to Somoza beforehe fell Allerw: their fight nurnbera. And thea they're as-,- Quiatero reestablished the contract : sassinated. He also finds out that » group of Nicaraguans and Salvadorans, a3 well’ as people aginst Marcos in the Philipe pines, are being trained in Libya, EA: These are lefiwing people? DS: Oh, yes. They're all in Libya: oppo nents of Marcos, opponents of Somozs, ‘opponents of the goverment in El Si Continued to supply Soenora's top fit military commanders, ia their incarmat as the “contras.> To this day, the top f * teen ofthe fifiees miliary commander the contra army are the same men ¥ were present at those meetings with Qi {ero, They're being supplied by Shack D- Clines, Secord, and Albert Hakim, ¥Germero ie North. DS, landary Bl, in gomes Ronald Regan. The pew sdinisration decides to s37ply ROSEY equipment to tee con tre they goieg to use? They've soca whole fpunrunning network set up by Theodore Shockley. EA Did Bil Casey have any relationship with these people? ; DS: Well, Shack was the director of the transition (eam for covert operations for the Reagan admisistration, selected by Bill Casey, But they couldn't bring Shackley back ing the CIA, because it 1d foveal hat be was Wilsoa's partncr, ‘by this point, Wilson had been in- “A for selling arms to Qaddafi. ‘What happens then? Casey aes over the cotura supply “aon, This x where i's not clear. The “yuatog we bave is that the CIA used came sipply network —the same guys rot caught mining the Nicaraguan ov, ped and passing out assassination seas, Thi spo accident, Well if there \ supposedly no big assassination pro- n going oc dows there, what were all “ge dead bodies? They were jus assassi- sions from the program, And, as of 81, a particular guy had to give the okay ca all of these bits before they could be ‘ase, That was William Buckley. 54: William Buckley thé CIA egent who was held hostage? - DS: That's right. The bead of the antiter- wrist group of the CIA, whom they sue ly sent over 19 become the Beirut Einion chief forthe agency. In March of "34, Buckley was Kidnapped and taken out to the Bekaa Valley outside Beirut. He was then akea o ras, othe boly city of Qua, bat brought back to die in the Bekas Malley. os ‘Does this explain the CIA's and the House's obsession with Buckley? DS: That's exactly right, Because he stared ulking about the “olfthe-shell™ ‘operation —the' assassination program. EA: Why haven't the Iranians revealed swhat he said? DS: Because that's exactly what has given them the leverage to get the Tow missiles. EA: But right now, that's over with? DS: Itisn'Cover with, It isn't close to over with. George Shultz made three more passes a getting those missles, even after the arms deal was revealed, You just 20 check it. [The public record of the Ieanicooita offer shows only one meeting, tex December 13, 1985, between State De- periment and CIA officials and represen tatives ofthe Iranion government after the farms sales were reveated-—ed.) EA: The existence of Buckley's videotuped confession ix keeping Iran sofe from the United States? November of 184. Ht no coincidence Jou got ths povate enerpnee engaged Ira number of Speratvons. They've got an ussssination progeam goin wBICh if functioning under Shackley, Clinea, and Quintero, They've got Secord supplying Seapons, They're tupplying weapons nt ‘only 10 the contras, but also 19 the anti- Marcie UNETA rebels in Angola and the febels in Eihiopia, as they had tothe Smith (government in Roodesia in the '70s—all ‘ver the place. They've got sk Rae Be alers of operation, Congress doesn't have, the spine, (rom their point of view, 10 do what has to be dose to fight the commu nists, Thea, when they uke Buckley in Tran, it tains ou these guys wbo arc ian volved in the “olT-the-chell™ operation are the tame ones who were climioating tere ‘rorists io [ran with Wilsoa, Why is it that. the same guys who are running the suff to the coniras somehow ead up in the middle ‘of the Tow missile sale? Why docs that happen? There must be more people ‘aroud than that who can speak Fars. But" ‘you don't have more people than that who work for Shackley, That's bow that thing. comes down. : EA: First f all, how do you know that ‘Shackley i the man in charge here? David MeMichae\ who also works at the Chzis- tie Instine ond isa former CIA cent—a “dissident CIA agent—says that this i only a passing hypothesis. DS! Know x because the people who told * me that Secord, Hakim, rnd Clines were ‘supplying weapons to the coniras are Ge same ones who said chat this was ‘Shackley's operation. EA: You'we given those sources 10 the Fudge, bud you haven't released them othe ‘media? DS: That's right. EA: You refise to give them tothe media? 1D: No: | don't. Each time the quesion * thas come tp, I've told you who they were. {told you about Cart Jenkins. And there's Eugene Wheaton, a retired U.S. Air Force warrant ‘Wheaton was an antiter+ Tous advisor to the SAVAK for the U.S. ‘army. He knows all thoze guys, He was evolved with some of the officers ia the ‘Rie Force’ special investigations section Sho were looking into cost overruns and Grercharges from when Secord was the Foreign Military Sales dircetor EA: So your sources are Jenkins and Wheaton? DS: Right. Jenkins, Wheaton, and Ferguson. EA: What happened next? DS: Casey comes on board, and the supply network functions from June of 1981. But by March of "$4, Casey knew that the jig when Cameress was eoing to pass the lake wait Dans Of and tet x rua. Apa EA Whar ie Clic Nor elaslonahip 10 the “enserpeie”? DS: Noch was the dep diectr fthe National Security Council in charge of “political and military liaison,” whatever thal mean, He was “laison” to the secret tere - team. Buckley was kidnapped in March of "gay and in Apc of thal year the National Security Council Decision Direnive 138; war signed, The directive formed 8 Ter rovist Interagency Working Group beaded, by none other than Ollie North, Ofie was, an expert on terrorism; he got involved; with the antiterrort dimensions of the, thing. Then the CIA took its hands off. ‘Since Ollie was more involved than he was, 10 be, given the Boland Amend tment, all the fire came down oa bia, EA: He's taking the ht. DS: That's right, But be ain't running the, show EAs Tell me what the show is with eperdio, drag running in Niccragua and how our, ‘clients were wronged. "The Tact it, we don't have any evt- dence ta the cores We irecty ine ‘volved in drug smuggling until mid-1983° e when Congress wal Co ‘sidering cutting OT funding. For year the ‘anti-Castro 2506 Brigade in Miami bas feted as the middleman for the Medellia Cartel and the Galante family—the Mafla—o bring cocaine into the United States, They use the moncy to buy weap? fons, They've got warchouses full for that = (peat day when they therland. They saw thatthe syndicate was trying to open up the Southera Frost, on the border between Nicaragua end Coma caher base outside the United Stas” Twas a double agenda: to get involved ‘with anicommunist fighting 4nd 0 4t up ‘umidshipment point for drug smuggling. They wanted to ally themselves with the FDN [Nicaraguan Democratic Force— the main contra arms}, which was tering ‘supplied by the syndicate, The FDN said ‘kay, but Eden Pastora refused to deal with them. He and the FDN were rival conira (tetions, and Pastors was already on the Southern Front, The Cubans got all wpe. They went 1 Joba Hull, EA; An American citizen living on 6 ranch in Costa Rice. Bsr a North American guy. Twenty-five years down there, He's no only a recipient Of the ryndicate's weapons forthe conurat down there; he's the base of operations fou Ukevrightewing crazies, like Tom Posey's ian Military Atsistance group, EA: This is an American far-right pare- miliary organization, 0 Soldier of For can retake the fa <5es Uy feasie Ua Wey La peta \astors 10 foie the FON. Hull's guys, "pring more sophisticated than the everage "eae, wat saying, “Hey. what's he story with this guy Patton? Are you kidding? Just blow him may.” ‘Thea Buckley is kidnapped. (Duane) Dewey Clarridge, who was rvaaing Latin American operations, is made the director of the CIA's Counterterrorism Cemex. He replaces Buckley. He delivert ukimatum to Pasiora through conire leader Alfonso Robelo: “You've got 30 ays. Either you submit weal tothe eoae trol Of the FDN—the FDN will rua the Soxckera Front, and you will ke orders from tham—or you'r eat of this apees- on,” Comes the 30th, Prato i going 32 stand nght up to them. Going 10 call» press comlereace sad spit ia their eyes. He calls prese conference, they blow him up. FA: Bat what exectly isthe connection to ee “secret team 15: Shackley was in charge ofthe assassi- sation program, which they code-aamed “Fish Fire.” Seconl was in charge of air ‘operations, the supply of weaponry. ‘They've tried to open up the Southern Front. Their people have got the power 10 ‘come ia and rua the Southern Froot, and this guy has got to g0. So he does. The cefterpiite aot only supplied the U4 ex- plosives with the specific kaowiedge that they would be used for terrorist bombings inside Nicaragua, against civilizns, to thow that the Sandinistas can’t protect people, but also, there was a specific ob fective: to get rid of Pastors, EA: What do you hope to accomplish wih the affidavit ogcinst these guys? IDS: We hope to obeain all the information 1c the setvites ofthese people from Jamu ary 1, 1959, 10 chow the people of the United States, in an irefutable wry, what Iappened. Then we will obuain a judgment against the “secret team,” We.will eqeire Bat the court face the question, whielt sobody wants 10 ask: does the executive branch have the authority to allow people © ina pondeclared war situation? | don't think £0. We want to get that ruled pon. Then, very importantly, we wast 19 emonsirate that an “offthe-thelf,” sand- ing-alone, self-financing covert-opera- tions capacity, which the Iran/conira investigation supposedly revealed and put ed in this form since 19773 ; and will continue to exist, oles something is done to stop it. EA: The Christi Instinue, you, ond specie feally this offdevit have very Uule credl- ‘ily in Weshington. DS: Because Washington didn't want 10 sedrit that the enterprise existed in the Br place. EA: Why didn't you come through with, ‘your sources when you besifed before thé Route Select Committes on Warcotlet DS: Do you want to hear bow that thing went? Fil tell you exactly how, 1 said, “Look, the Democratic majority in Cone ress is urying 1 get information to prove {ht the conirar are running drugs, The Republican Party in this sdminisirtion supports the contres. Ergo, the Re+ publican Party ia endorsing drug smug- Gling in this country. 1sn°t that awful? That's not hove this thing should go." 1 sid, “I'm prety willing 10 give you the sources. But it give them 10 you, the Republican guys siting here —Dob Dor an [Rerublicen, Cafifaeniat ant the he x4 —will be commptled to deny it, They'l« Sy that it fan" tue, They wall be com- felled to go oot aod tlk to their contra fends and tell them exactly who the sources are, S016 lke to propose that we orm 4 subcommittee of intec Ke publicans, chosen by the Republicant, and {wo Democrats, choten by the Democrats, to that the Republicans control the mub- group I will st dowa with them and give them cry tingle source I've got. Not aly that—{ will personally tke you to 8 souree. EA: Wry docan't Washington believe you today, even afterall that we've heard? DS: Because ts taboo, talking about thi pop EA: But i's mt taboo among liberal Dem exraiz, DS: It sure is taboo armong libera} Demo- caus, Liberal Democrats are being told to ‘vote $36 million tothe conirag, What, we you kidding? EA: You showldn's s2y that, because you DS: But you waich what they're going to do. The Republicans are oll moeming. and ‘proaning right pow, saying, “You've got1o ‘Support the $36 million for the coxrrasSor hae we're not going to be able to nop’the Sandinistas.” I've run into this all the rowty defeated in the House, Democratic leaders then proposed cn “alternative” $30 million cocira cid plan, which wos tao defeated.—ed.} EA: What's the essence ofthis corruption? DS! i's dialectical, deriving from prag- matic, local politics. There's no real effec tive protection of the public interest. ‘What's the mott idical satement you cant ‘Bet out of Senator Dodd [Democrat, Cone necticut]? Dodd will say, “We all agzee: (hut something should be done abo Sandinists government down there be Cause, you know, they're Marxists, but ‘disagree on bow it should be done. xtEXC Wha wa! he func ofthe Ieantcon tea committe? DS: The function of the Ira/contra com mittee was to rexpond to de fact that Ed Meese was geting ahead of the curve. We were talking to these guys for six months totry to gettbemto mt up asclect commit- tee. We were offering them any rources they wanted, They woulds't do a thing about it because there was no shoct-term political advantage. It's a cxicism of the limitations of our demacratic system, The difference between reality and political pretense is profound in this ow. I'm not eying to be vulgar or bangicg my Be in my drink with these people. I'm imply saying that the Constitution is ia cajor danger bere, There is a covert siructure in place, which Congress knows is ia place. These ‘uys are not dumb, They koow this thing ‘exist, but they don't want io tlk about = Whea we were trying to act up a select committee bearing, Peter Rodino, the Democratic chairman ofthe House Jie ary Conamnitice, said, “My God, if this is true, my whole life bas beea a lie. I've bees telling poopie 10 vote for their esa sgrcssman, (0 write to their congressman if they disagree with a certain policy. I this Is true, we hrven’t been ia charge, I'm pot going to investigate anything like that” What does that mean? The evolution of cur poliial consciousness hes a long way tog. ‘The difficulty if that the America peo ple have 2 decp and abiding sense that they're being hoodwinked by politicians. ‘They don’t know exactly how. The fect is, ‘when you go out and tell them about this thing, they say, “Right!” Seventy-three percent of the American people don't supe port giving a dime to the coniras. The fewest the polls hive goee is fifteeine percent. How are these guys reflecting that ‘ver here in Washingtoa? Do you tec scy- centy-three percent ofthe congressmen £3y- ing. “My constiwenus don't tupport this"? EA: A lat of people wha are hoping for your success feel that you've overplayed ‘your hand! thet, by aot being careful ‘enough about the accusations end sources in your effdavit, which may be scited ‘upon in court, you could put the country in ‘an even worse pesition, in effect clearing these guys by destroying your own credibility DS: The fact is, without the affidavit, we wouldn't be anywhere at all. I've set forth the information onthe basis of good faith beliefas io what istruc, and have dared to say what nobody wanted to say. There may bbe a disagreement over particular items. ‘Obviously, I'l be able to demonstrate that big opium money has been used to fund & covert operation. We're very big on that. Former agents are saying tat they believe EA. Donat mesticnr “1 Unt, not DS: For someone not 19 believe it, 1 eit trow i ead ty fave sept proclivity for'saying that if they don't know, it can't be ue, “How could tomes thing be uve without my knowing iT” That is the arogance of Washington, That is what we ran into atthe very beginning. But we're in the process of showing se ‘iatim that our claims are true, It's my ‘opinion that we have been very responsi+ ‘ble and will be beld responsibie for prov- ing what we've s3id, The fact is tt we Jaa laid it down ina court of law, Inthe seposit ser etn, the Filth Amendment, of clai privilege not to talk about ite foal security” reasoos. They'ie Bot ying it ise nr ae they wing any how it Beate toe," a ished on a the Journal of ane puppet that coc eos intelligens if: As ‘would have it” fant tat x Sap oT cc wae guys x rand say i Ry was wateking in oman rasa, ey Ek: One of your main sources it Edwin Wilken; who was prosecuted for selling weapons to Qaddafi, emong her things. cand és spending the rest of his life in Mor ‘on Prison. According to your ergume? ‘he was a main ployer in the “secret team.” Is he the mast credible of wisnesses? DS: He was siting down there in K Unit, ‘with nobody talking to Bim. I mid, “I'm aware tliat you believe you somehow got ‘the chaft And I want you to expla to me why you think you go. the shaft, I know tat you were in there, dealing with the suyt who tet up the assassination pro- gram. You're in prison for 52 years. No- body gives a shit about you. They al thi you're a tou assbole, If you want to ex- Plain why you're sot, bee Iara.” And 69 be nated talking 19 me, When he'd get io * particular point if he didn't want to talk about it, 14 ty, “I know about that” and 14 ell him what I knew. He'd say, “How id you find out?” I'd say, “It doesn't mat te ow: js tel me about hsp.” And tell me. EA: You seem on unlikely person for Wilson 1 choose ex a confessor. Why you? DS: | don't know. I really don't know. 1 - kknow that people talk to people and you can never figure out why. I don't know ‘why people ut to cops after they've been artes, The cops xy, "I ink you robbedAce Wrying 10 feed you disinformation, 10 fey give you part ofthe ruth and thea pot 1 pin on i. | think I'we beea able to weed (xr what's true from wht i". That's te gril comniicity doesn't want to dp it. That's part of the reason why these guys will wik to me. They think I"m more Like them thas @ lot ef the Dberals, frowned ers Reet! yeAfterword: DOES THE CHRISTIC INSTITUTE CASE °S HOLD UP? | by KenS ilverstein . ccallagues on behalf of their cicats, the jpmoalins Martha Honey and Tony Avir ‘Pam. The couple retained Sheehan after [ (Aeirgn was seriously injured inthe bomb azempt oa contra leader Eden Pas vera't Life ut La Ponca ia 1984. The afTa- ‘Wik ets forth Shochaa's theory 26 '0 whe wet behind the bombing. Despits tome ‘detour assertions, the portion of Chris e's investigation dealing with the imme- Sete cicumseances of the bombing cts ECHL It when Sheshan and his wscei- | = Que central problem ster from Cite err apparct dee wrod charting an mesncy of the US. government, and ia perculer the CIA, with complicity in the plex Instead, the affidavit proposes a Secret tam” of private individuals mas rexninding decades of eximinal conspir acm including astussinations and drug’; smmeing. The practical consequence of ‘comtining the accusations 1o these individ- sek is thal Christie's rte willnat be con eet by the U.S. Junice Deparment, ‘wit its limites financial resources, but hic expedient —if such it wat—hat not | fetped the perzuasivences of the ease ‘The basic premise of the Chrisie In- smi Lawsuit is that a eeeret team of fore exrCIA officials, U.S. miliary officer, feed ums merchants, led by Theodore ‘Shechley and his loyal “depury." Thomas (Clie, isthe group that masterminded the Semmtcorire affair. The (28m, #8 Oe theory aes has worked together since the late ESRC, planning the Bay of Pigs eperaiion saad coher antiCasiro activisies, Theit 1 SSIS operons on seal cots, | Major operations included running the se, * eregwarin Laos isthe 1960s, asastinnting polikal opponents ofthe Shah, destbilize ing Allende's Chile in'the 1970s, and expasizing the corare war in the 19805. At Ames the team has worked with the knowl ‘edge and cooperation of the CLA and at timet a8 an “off-the-shelf” offhe-books Private army. . Unfortunately, the theory, as advanced «in the afBdaviy that isthe basis of the lawnuit and Daniel Shechan's public pro pouncemeats, i marred by factual erors land what one eric has referred to 88 Tekcassive extraptlation.” Somme of the ‘miraket botgh misoc Gs some doubt the rblablity of Sbechan and Crise, dates wre inscourate, and numbers are seemingly plucked foes the als. But the ‘meet serious problems invelve Sheehan's Contentions about the secret tears actual scivies dusng the past reveal decades, Shackicy and Clines; transferred fom in = Year Shactley was nazmed chief of station, With Clines serving as his deputy, Theit primary duties involved training indig- | enous Hmong wibermen in unconven- Nional-warfare accivities, with « speciah emphasis on palitical assassination. Ace cording to the affidavit, this Hmong unit “seereily assassinated over 100,000 nan combatant village mayors, bookkeepers, clerks and other civilian bureaverats in the sounttier of Lacs, Cambodia and Thailand.” They funded these getty largely th ris of Vans aH nin the ‘Tidavity 5 adorn! whos Shactiey baa AEeo=0E (6 Raloh MeGebec, an ESCA teen who sere wr Stuckey in Soubeas Asia and itnow taj a of the agency, this secounk i waclabie, ‘The United Stites was running 4 majog war in Laos, which included upprosic 'y 170,000 sorties pee year—moxtly bombing rine—between 1969 and 1572 Records thow that the entre effort was being funded by the U.S. goverment, to ‘p10 $260 millon per yest To wegen that any significant portion of ese stivities * gout have " ‘MeGehee. He aao claim that the gure of 100,000 politcal assassinations i highly lnfted, and points cut thal the Unied Secs would Mive i peaia oki evitian ~ burawcras i Lage, a qusey the US. was mippated tobe Seeing’ =, According to thé: Christie Institute, Shacidey and Cline Safer sassfere Saigon inthe late I96G%, were reaied to ‘the United: a ( ly ‘government. sin September of 1973." ‘Actually: the “Tine IT" operation had box tur in 1970, eves. before Allende took ofBoe, and his hel of afl General Rene ‘Schosider, bad been assassinated in Oc= there, Shaciley ad Clines moved {0 the CIA's East Asid division, where they “directed the Phocaix Projes in Viet~ ‘sam in 1974 apd 1975." The Phoeaix Proj- ect the alfdevit xy, resuled inthe polite eal exsassination “of some 60,000 village mayors, Ueasurers, school teachers snd ‘ether non=Viet Cong adminizintors.” But {he Phocnix Project, which tezan during the 1960s, was over by 1972, William CCotby, who supervised the project and was later named ‘director of the agenéy, has acknowledged that approximately 20,000 people were killed, Some South Viet samese estimates place the figure as high 11540,000, but no one else has eltimed that $0,000 people were assusinated. Also, the purpose of Phoenix was fo day the political infrastrocture of the KLF (Wa- tional Liberation Front]. would bardly ‘make sense, then, to targel village mayors and treasurers, who were a par of the South Vietnamese political infruinetore. In fact, as McGehee points out these were the people whe were being targeted by the Viet Cong, : ‘After a mids19%0¢ stint supposedly die ring an assassination project puinsthe Shah's opponents, Shackley and Clines supervised Edwin Wilson's dealings with Muamar Qaddafi, Wilson, though provi ‘ams, explosives, andcercing fo the affidavit, “inieltigence * gathering activities deat tned ts pt ine bis bands the ienulies, missions tod ta tt of the Libyan, artisShah terrorist op- cratioe.” The operation was blown when Kevin Mulcahy (ipelled Muleakey in the AMCidavit), who worked with Wilson, Twrksewingly revealed” his bass" sativi= es (0 4 person friendly with a federal he Cori vein of qe isan vas povidg lage gue Sewer duane pty Sligo aba Bos ml oe ttratm tae or eae waa eee OS, Toh Whe iy ne aed cooper od precios tase wgency, his dealings with QaddiS were Silty ete meson ar ‘The afBdavit claims that Ratae! Quin- ter, Rad! Villaverde, and Rafsel Vil- Were, thee Cubens with lobe Gi wie cain nt “bese operatives for the secret team, were > comaced by Wisoe wo mun Lah terrists. But the record shows that SG tized wo poy be bun toh cope of Calan ing i Eo Thethree men, who hive ac nteal galas Sout monet we reine selene cae idee peta ee cad Se lng Quad Set Tr Quintet cpereaiy prone ne, Sather inl peioely ia ed raced Gina apneic ‘Gon on to Shackley, Accordjag to a 1981 vm in tbe Washingwn Pose Shackley_ fer ped tis lacuee ca 8 ober GA officials, who notified the-FEI. * MeGchoe belies that tite, only because would wast “io cover isha oon alee aur ce ~ Gent ppp ted ode ere raped U's paso Gack Spe per he oe Seay oe canbe peti an eet Seen oT an Trl, vin Maley ai 96" taowingy" ove uy maton, He calito tape wha cold eens Spot ogee Causal aged Mehe ittSome eons tet Wis’ activities ia 1976 called the GX ther he ule we eas fer on them. Maley hen earceé hs ‘resnics tnd went ohio, Bare ecc noert yer hewtedo esead fir fom ai different weccigocy Sorccs ging werpure Wiens het eeeTasee Dac tats Pa, tid have ded ef nt cree toe ee pense Leon ne nurse for eprint Wibon Fes of the wai in appear akon. Fin, Shechan claina tat Ges was Shackley’s deputy in Lace, Veins sd he United Sates. McGehee and Jana Stocktell, another intelligence etieey Cumed erie, bexh claim that Clnes wad never of walficent ran to have sare a Shackiey's écputy. McGehee, wig worked on smucact ea om Sasha says that ‘not only did he never tex Cine there bat he also knows who Shackley's deputy wat AU the tne (be cannot reveal the rant fame becuse of recrcy retin! that apply tall x-CIA fils} Also! in 1576, when Stacey was chief othe East ‘Asia dviion and sappoacdly funning tbe ardiShab bi tquads with Cline” eiite lanes, they werent even wocking tpechon ‘Shechn furber claims that the Secet {eam moved aT the books of he #peney in 1973, According to the afTidavit, teem srembers “knew that their secret anion: muni cuerminstiog program was going {0 be shut down” in Southeast Arise Therefore, they began their non-CIA. pis vate nerwock “lo operate after the end of the Vietnar caagn." The mere team's worldwide banker war suppotedly Richard Arméage, then 4 anal officer it Seigon, who sened as barr for Ving Pao's opium money. According to age moved te Bangkok ia with the suit claim there 4x no tolid evidesce that conrects Annie USE to any ofthe acivties in which he is implicated. la at least x portion of the time, he was supposed to be in Bangkok, Armiuage was working in Washington af an adminiswative assisant te Secator Bob Dole, secording to Dote's fice and the Penutgea. While Shochan secs i maveric cabal! some analysis believe that Shackley. worked on a number of covert activities but always for the CIA. By creating a mythical conspiracy, they 13y, Shochaa ix letting the CIA off the hook, Stockwell (oid one reporter that “Theodore Shackley “was only one ofthe top 300 officers in te agency. The problem is with the policy of feovert operations.” MoGehee doesn't believe that there was 4 secret team either, He sys that Shackley was certainly not the mastermind being the Inunvconira affair and, in fact, had a minima role. According to MeGehee, ‘Shavicley was “wying to got in on the ac. tion but they ignored hire -2s- iovrsonara ecpoet prepared by ine Btessional Commitiegs says that s_ ahkey met wich Mamuchee Ghorsaniion the Wanita armt dealer —welltte U.S. intelligence affclale=in New Of 1984, la West Germany. Aerors: iy the repoet, “Chortasitar told Skacaicy that foe 0 price be could amange for the release of U.S. heuages In Lebanon vbrough hs Innias conics... Upon hls Fear tthe Unkind Suzaa, Skacticy nent a mamonadi about Nf meeting’ with to Lt. Gea, Vernon Waters, OlEcisls, who concidered the Propoul « “scam”; In December, as told that the Suto Depart mma “Was ot interested in purmuing the Fansoes proposal.” Aarne dows bis lr of help. This wpaoce lands like support io the Chriss theory, Ths scile of the covet activin that ‘Sheehan sccuses Shactley and sssociates (Cearrying out appear 10 big for a mall foup of private individuals, 20 meer bow sophisticrted and experienced. One analyw'clims that the “CLA should be ‘happy withthe lnwauit because it removed - rexpoactbi thea.” This macy of these private individeals, moet! otably Sbackley, were high-level ofBoon « in the CLA. there wes a “team™ it would! ‘Dorn katy heve boon a direct enterprine of the US. government,Information contained in the April 1988 Interview magazine, the August 8, 1988 Spotlight and the August 24, 1982 Wall Street Journal could explain the reason the Army framed Dr. Jeffrey R. MacDonald. The following relates to this case. oaSPOTLIGHT Angus 5. 1008 N IN-DEPTH LOOK AT: AMERICA’S DRUG PROBLE : CIA and Big Bankers Key Drug qi rade Players The illegal drug plague Vs the major cause of erime in our nation and is coniributing 10 the near destruction of an entire generation of Americans, The drug industry is @ muliibilfion- dollar venture; and its enormous profitability is the primary reason it is s0 hard to contei much less wipe out. The economies of entire naifons are run on drug money, and the private armies raised to prolect the growers and distribution networks rival. end. in some cases, outgun, those of na sional defense forces, such es Colombia. Of course, such financial power has enor- ‘mous polircal implications. For years, rumors have circulated that the drug traffic could not continue without official USS. compliance, if not active participation These rumors have particularly entered aroundUS, intelligence agencies, alleging that the drug lofds were being permitted 10 carry on their rade in return for performing certain fa- vors for these agencies. In this week's OVERVIEW, we examine the roots of these allegations and some of he more «| intriguing, and supportable, exampies of these charges If eny of there charges are true, then the 3) US. government has much 10 answer for. Drugs aré a serious social problem, one of the ‘most serious facing the country today. If the government is in any wy involved in drug Smuggling, of even turns a blind eye to drug smugglers in return for certain favors, the pub- Hic has every right to know. And, if these charges are irve, and the public is informed, it would certainly topple whatever politcal parry was in control atthe time, Thus itis doubiful that 2 full and public i guiry will be called on the matier by any poli Gian, bul these charges need 10 be aired in order to sir the public fo demand such a heer . ine. aeAse analyzed in y moni SPOTLIGHT Kees. tnroas new hight en the Him Fh ime CIA ahd the intemational banks in the hweonng buciness, The most revealing of Lt. Col, James “Bo heroin warlord Khun Sa in the following ra comes from first-hand observers or seasoned players in this lawless trade, Read in coniext they provide answers to the underlying questions of the US. drug crisis. ‘The narcotics market, long confined to the crimi- nal underworld, entered on a period of expansion in 1963, law enforcement expen explained. Today it is no longer just another racket: it is the fastest- growing commodity canel in the wor! How was the illegal “coke and smoke” wade, de- nounced by politicians and pursued by police, ele- vated to such economic eminence? The answer that ‘appears most likely at this point is thai behind-the- scenes Washington bureaucrats and Wall Street bankers both proved willing to participate in it. CIA operatives say that the agency is always in need of guns and money for its worldwide covert ‘operons. It is willing to work with drug smugglers able to provide either—or both. HAULING POT was flying weapons from Florida to Honduras Rie ARO MENTE ind! bea CIA evn, Sensie subommitiee In sem texiimons last May ‘On 4 typical {ight we shipped about 24,000. pounds of military supphes—puns, ammunition, things like usat, fn 18A." Mange! Tellier told a of cargo did you bring back?” Tole Te “Bot—some 25,000 pounds of it. | mean manjua- sa, Yeah. mutjsana the ex-IA pilot eaplaned, “We brought the marijuana back to Florida in the ‘same plane.” ‘Tolliver's startling account, The SPOTLIGHT found, is supported by similar testimony from four other drug pilots. Testifying under oath, they gave detailed descriptions of missions flown for the CLA that frequently involved black matket weapons going into Centra) America, with loads of narcotics: smuggled to Florida on the return trip. The Latin country where the interlocking network of intelligence agents, dope dealers and international bankers is most visibly-daminant is Panama. js “Drug money is the lifeblood of dur economy.” exiled Panamanian joumalist Jaime Pedron told The SPOTLIGHT's diplomatic correspondent in Miami recently, “Panama's government pays the police and firemen with dollars derived from the narcotics traf- fic. Panama's two leading industries are drugs and ‘money laundering.” Matching recent intelligence about the Panama ‘scandals with data obtained from southeast_Asia tums up a nuns oP fey fpsrs babed os doeer ‘Ed Armitage, cited by Gritz for his alleged links to Golden Triangle drug lords, was also found to be a familiar visitor in Panama where he has held several: private meetings with Gen. Manuel Antonio Nori- ‘¢ga, the nation’s strongman, in recent moruhs. Shabowy PRESENCE ‘The Mossad, Israel's secret service, has acquired a shadowy prosenee in southeast asia singe the United States abandoned Vietnam in 1973-1 is also. ‘a major player in Panama's financial and drug mar- kets. The SPOTLIGHT found. Michael Harari, ve!- ‘eran boss of a Mossad hit squad. has emerged in re~ cent years as Nomiega’s right-hand man. “There is overahelming evidence.” asseried a> thor Jonathan Kwitny, a veteran investigator of in- ternational crime. “that U.S, agents punureg the heroin sendicate of the Gorden Tangle inthe 1960s “Biibcipedexpon theme” —OSSOSS~—S ais found that CIA operatives played a simi- Jar role in Central America. “Drug impons into the United States have been facilitated by Latin ‘American coven operations run bv the CIA and the Defense Deparment” the noted mvesigave wnitet ‘conclugea- Some Americans may find stanting-—and hard 19 ~rlewothat “respectable” leaders of goverment BCJol sand Dr Phihpps Rivets Haghesen. a dn soosuitunt at LN Bealquuners in Now Yeh "In 19s the U.S. federal budget tor narcotics ea foremetu—the total appropriation for this pupae ood ut under $4 million, Today it's over S4 bil- lion, a thousandfold increase. The drug bureaucrats have acquited an empire of their own. They have become a ‘nurcocracy’.” ENFORCEMENT EMPIRE The domain of the Reagan administration's Drug Enforcement Administration (DEA). which doles ‘out most of these funds. includes Nets of ships and specdboats: squadrons of jets and helicopters: even stands of radar blimps. tethered in the waters around Flonda and Georgia. In Washington. the DEA oper- ates some of the largest official computers: abroad, it has its own attaches in U.S. embassies. Yet. despite the growth of this empire of enforce- ment. dope is cheaper and more plentiful in America than ever before. Wholesale cocaine prices have dropped from a high of some $50.000 per kilo during the early years of the Reagan era. 10 around © (Continued From forcement agent, who asked not to be quoted by name, “suggest that despite all the hoopla, more co- caine is entering the United States, along better-or- ganized import lines and a more efficient distribu- tion system, than ever before.” If door-pounding, badge- popping federal en- forcers cannot stop the Mow of dope, how docs the DEA hang on to its Chrismas wee of powers and perks? The answer is that it has converted the drug alarm publiciy into a racket, consistently reporting its seizures of contraband in terms of the drug's street value. ‘A major raid neting. say, 1.000 pounds of smug- gled cocaine is announced on the front pages as a mayor victory: It has inflicted a heavy lass on the drvg cariel—as much as $250 million, assert the DEA spokesmen. But in reality. law enforcement expéns say, when. a narcotics smuggler loses a shipment. his loss amounts only to the cost of replacing it, Curenily, the seizure of a hypothetical 1.000-pound dope cargo means a setback of about $5 milli-n 10 the Colombian cocaine cartcl—a large sum tbat is, nev ertheless, factored into the cost of doing business in advance. aay fupve CONTRARY INDICATOR The seizure rate for contraband drugs has shot wp in revent years, nearly a hundredfold.” said the law enforcement agent. “But as am indicator, it shows only that more and more dope is coming in and going into retail outlets. It ig not a mark of suc- cessful drug suppression—just the contrary.” AS for some of the largest Wall Street banks. led by the Federal Reserve, “I can tell you firsthand that they regard narcotics, not as a crime problem. but as just another. commercial venture.” declared Ramon Milian, a major money manager for the Colombian drug moguls. - | Milian, who is serving a 43-year federal prison sentence for laundering hundreds of millions of dol- lars in dope profits, has appeared before several congressional committees. His calm, detailed ac- count of how he made use of America’s largest fi- Rancial instirutions—in fact, of the entire Federal Reserve Sysiem—to sanitize and invest vast amounts of “hot money” is one of the mast reveal- ing testimonies ever obtained by Congress. . “The banks were never concemed about the source of my mammoth cash assets,” Milian re~ counted: . “They were preoccupied only with making 2ven-Gritz Says U.S. iovernment in League With Drug Dealers The following is @ transcript af a re cent edition of Radio Free America. the talk show on North America One hosted by Tomt Valentine. Tom's quest was Li. Col. James “Bo” Grits. Grits, 4 hero of the Vieinam War, has alleced that high US. government afficials ave actively involved in the international drug trade. Valentine's questions ore in bald. Responses are in regular type. Bo, you were on a television show fellow by the name of Ron Paul, the Libertarian candidate for president, Tunderstaad. Aod last night Ron was cur guest on this show and we talked all about the Libertarian point of view and then we finally got into the legalization of narcotics, of dope. And a jot of the eallers and the people got a litile uptight with that one, ané 1 Understand that you have some very strong views about narcotics in this country. “Tom. there is no question that I have a strong and on narcotics. 4 was with Ron Paul: we were on the Morton Downey Jr. showt—which is becoming quite’ popular. W's. kind of a scream talk show. ‘And Ron Paul made a statement that 1 couldn't believe. 1 was looking for an al- temative candidate because honestly Tcan- riot vois for Bush. { was Commander of Special Forees in Latin America the same time that Bush was head othe CIA in the United States | knew thar [Panamanian stroAgman Manuel] Noriega was not only a dope. ‘smuggler but a communist I recommend ed chat we dump him, we didn’t, and now he's emerged as a wart on our political nose. I cannot vote for Gearge Bush be- ‘cause of what I know about him. and the smuggling of drugs, and the use of drugs to circumnavigate our Constitutional sys- tem, Now. 1 don't know enough about Du- 33BO GRITZ ++ Names names, dates and places. Lakis so I was looking at Ron Paul. But shen Ron Paul stood there on the Mortan Downey show and said with an angry face, “We mist legalize all drugs.” and Downey said. "You mean to tell me you would legalize crack?” and he said. “Yes. 1 would, and heroin and cocaine.’ ‘Tom. this is the greatest nation on the face of the Earth. | honestly believe—you may think I'm a fool—but I believe that God allowed us to inhabit this nation and to have it as ours as long as we remained a righteous people. I think it's supposed to be a nation where people from all over the ‘world can come here in religious freedom as long as we remain a righteous nation, ‘And. it’s simple. all you need to do is check your conscience—ls it right. is it wrong? How can we stand, regardless of our religious beliefs. before God one day + and say. “We took 2 nation of milk and honey that you gave us and we decided for various political pressures. or to take the profit out of it, or to go along’ with the Supreme Count. that we would legalize rugs in your nation and be poison to your children.” . It's not right. it's hot American and it makes me wonder about these people who would do with this nation what we know that our Father in heaven would not do 10 it. So, 1 am strongly against it. If you com- promise, Tom. you lose. + of mine, Scot Weekly. to go into Burm: Now we've alreudy seen we can't teach creauonism in the schools any more. so that leaves only one thing we aU find out, that we all came out of the ocean as slime. You can't say the Pledge of Allegiance any more because ii has “God” in it. You “can’t pray but you can do oms [media- tien] in school, And then we wonder how’ come the United Staies is being baked in aheat wave and our crops are shriveling in the Midwest and the Mississippi and Missouri rivers are drying up? We better look at who we need to be thankful for and get bbacho being a righteous nation before we take “In God We Trust” off our coinage. So, that's why I am so strongly against it you don’t mind me continuing here for just a minute, I'll tell you that George Bush, his office, asked me and a comrade 1986 10 lonk for prisoners of war, We got in there. |General] Khun Sa is the overiard. of the Golden Triangle, which produced in 1986 700 tons of heroin that came into the free world, Now, in 1987. it was 900 tons and this year its 1.200 tons. We didn’t find any prisoners of war there. But we brought back a video inter- + view with Khun Sa intended to go to the president and on that interview Khun Sa said, “I will stop 900 tons of opiates in 1987 and I will divulge every U.S. govera- ment official that has been my best cus- tomer for the last 20 years if President Reagan will help me to legitimize my economy.” " Now, Khun Sa is anti-communist. He's surrounded by communist Burmese, by communist Chinese, and by communist Lao. Every one of his weapons, all his military equipment is made in the U.S.A. Now. I thought not having any prisoners of war we have failed there but I thought we were going to get an “atta boy” from the White House, because you got Nancy Reagan saying “no” to drugs, We tumed those videotapes over to the White House just before Christmas of 1986 and the White House response was - “no interest.” I went back into Burma and came out again in 1987, June, just about a month ago this time tast year. 1 brought back the names of government officials that Khun Sa says have been dealing hier in-and trading for arms for more than 20 year rt bet Thee woclude meb-rankine C14 uff cds they alo include 3 curreniiy serine Tayiant wecreuary of defenyp Now what Tmukes this crime even more heinous, Tom. MANUEL NORIEGA +++ Gettr warned goverament aboot him, is that the man that Khun Sa named as the bag man. the accountant. the man who was dealing with the banks in Australia, wasa man ichard Arm) ‘Armitage is not a publicly elected offi- cial. but was appointed by George Bush and is serving as an assistant secretary of defense today. He is responsible 10 the American people for the renum of TTS: yor Ot w. ‘Now. I couldn't figure out why in five attempts to rescue Americans we kept los- ing in the 11th hour. Something would happen. an enemy gunboat would show | up. the American prisoners of war being” recaptured by the enemy. One time it was Voice of America announcing that we were in Laos—commandos from America —to rescue U.S. POWs and of course we | had to abon our mission. When Khun Sa identified Richard Ar- ‘mitage in June, 1987 it tumed a Tight on for mé. { returned 10 the United States and brought this information before the U.S, Congress and, “no interest “Khun Sa-tizo- made in writing «com pain to he Justice Department namie “Hese tre people inJune, WUT Noting: Fappened, Then. in Marche T1S8%-Khun Se “wrote a letter making an offer to give, as a show of good faith. one ton‘of refined heroin to George Bush if Bush would open, 14 dialog 1o'stop the trafficking Of all hero- se ‘The reason there’S no interest because these bureaucrats are trying 10 cover op their wrongdoing for more than 20 vears, For more than 20 years they have been By passing the Constitutional system. going around Congress in executive decisions. much like Ollie North said, they were set ting up a way to suspend the Constitution of the United States. {10 establish] 2 paral- Jel government - Wel, all that is done, Because | know the guys that are in the middle of all of this. L work for them: You and Ollie North are the’ same rank, aren't you? Well. that’s correct and 1 was made a lieutenant colonel back in"1972, so my back there. But the 1g disgusting. I know that alot of your listeners have probably contributed money to help the “contras” and I agree with that. But here is what happened to their money’ ‘The money did not go to the contas, the » Money went in the pockets of arms dc ers. Then thoserarms dealers, through B- rael, bought weapons, from the Soviet bloc, helping the Soviets—brought those ‘weapons in and sold them to the cantras at up (0 300 percent profit. It farened their pockets, it heiped the communists, and we haven't gorten one step closer to defeating the'Sadinistas yet in Neaneue NoW; Gea, Richard’ man who was Fight in thesmiadle ofthat and worked very clos¢ly with Ollie North. ‘When Secord appeared before the Senate investigating comminee looking into the 1 Tran-contra scaridal he was asked, “Were © you selling ams to the contras7™ and he Said, “Yes.” They ssid. “Were you selling at a prof- 7" and he said.“Yes." 2. ~ And they said: “I thought we were there {0 help the contras. Why.were you selling those arms at a profit?” ~ And he said: "Well. couldn't we have ‘0 purposes? We were in business 10 make money.” . He also said about the Iran arms deal} think I deserve the $8 million that we made for all my hard work,” Now, Tom. I submit to you that if. you have to pay a patriot. you've got the wrong man. These are patriots for profit. ‘They're people that wear a veil of patrio- tism but their rea} basiness is war, money and guns: . And they are using dope because the Third World countries that they're seHingy to don't have the money to buy the arms. But all of them have one thing in com-mon—a lot of illegal narcotics You see. their planes are taking arms 10 Nicaragua, 1uming around and bringing dope into the U.S.A. You see American bankers and you see intemational banks fattening themselves on this dope profit i's pant of a conspiracy and a year ago. Tom, I wouldn't have believed it. But 1 shave touched the beast and I've seen it and M've smelled it and tasted it The fact is that there is a conspiracy ip the United States. I involves intemational aneing, I involves paralle! governments ‘hat would steer the United Staies toward Gestruction. For what purpose? | really don’t know yet but it certainly isn’t in the interest of the American people. Well. that’s my opinion right now. And it's not only mine. When I got back here in June of “87 1 thought | was the Lone Ranger. | had in: formation from the Golden Trianole, Gen. Khun Sa, thar American officials. by Tome, ware dealing in drugs But when irived here I tead in the May issue of Time” maguzine that a super-patriot by the name of H. Ross Perot. down in Dal- lus. Texas, had received police repons. Now. they didn’t say this in “Time” but Vve got a copy of those police reports since then And. he received police repons from the FSI Tom the Washineion. DC ‘Police. and other agencies around the ries State naming Richard Armtase 3 Torus smuggler anc an rms dealer. Perot. it says in “Time” magazine—May 4, page 18, for your listeners if they’ want 10 check it—went to see his old friend, George Bush and that Bush told him 10 go to the proper authorities, He went 1o William Webust then heid of te FAT] who inom aa ratkgre worieer tone ee HORE carping a pile of documeas so Tanna Ra wen - SEE SE ot Defene Pant Co, lux who fs Armilage's pace wea 1a Mp (See GRITZ, Page 18) (Continued From Page 17) Perot end acked him to sion pureving Ace ie Rese STE Sealer inthe Sond, TE FTA RON Feral. a super pat Just [eo they em of Anwa The Hun, and Tyou've gor 2 Tenieetns culfit called the rise Institute {see relaied story), all Saving The samething—and nothing ig happening, T've heard your story several times and each time I just sit there and I think itis shocking to the core. I know that you know what you are talking about because you have your facts. Now, you've presented those things and your riend Scott Weekly has been sent to prison on a trumped-up charge. Is he still in prison? And if his time's up. why isn't he out? Well, thank you. Tom, Just this last Fii= day, praise God. the judge for the first time in 14 months actually heard evidence about Scott in Oklahoma City. A man by the name of Alley. a federal judge, who had sentenced Scott to'five years in prison, heard evidence and immediately released him. Scout walked out-of the courtroom last Friday. He's back with his family. Right now he is a free man. He was unuly 2 political prisoner. What happened was when we came back in’ December of °86 and we gave that videotape showing Khun Sa offering to divulge government officials, the White House, 1 think, and specifically, Richard Armitage, became very alarmed and very afraid, ‘The Justice Deparment notified Okla- ‘noma authorities that ] was an arms dealer with Iran, that 1 had been dealing with Ollie North and there was more to be found by investigating me than Ollie Nomth. They said they couldn't get to me because 1 had connections in the White House; that they would get to me through Seon. . Now, we ad been training Afghan fr dom fighters in the deserts of Neva rear where I live, in August and Septem- ber of '86. Then we received our briefitig from the White House in October of *86: ‘we went to Burma in November of "86. ° ‘They knew that Scott had access 10 Eyeplastic explosives, and’ had shipped the same out here from Fort Hill, Oklahoma. and they charged him and he never had the Spporninity to have a lawyer. He was sen- tenced by Judge Alley to five years. They charged him with ansporiation of explo- sives aboard a commercial airliner, which isnot against the law if you are working for the government. The judge finally heard the evidence but it was 14 months t00 late, The whole thing. Tom, was a setup in order to by to crush us so that we could not go into, Burma and it worked on the other end too, because the United States threatened to re- move the tens of millions of our tx dol- lars that we give to the communist Burmese and the Thais for drug suppres- sion unless they were able to kill Khun Sa, They were banner headlines in all of the newspapers for about three months about, “U.S. declares no mercy in drug war.” and, “Air strikes against Khun Sa Finally 1 read one that said, “Khun Sa mountain stronghold seized.” - You know it took Scort and me six days —three “days coming, three days going —on horseback 10 get to Khun Sa's head quariers in “86. In °87. I drove in a pickup truck on a newly buill highway straight ¢o- his headquaners and there were 10-ton | military vehicles fram Thailand coming * thé ottier way loaded with heroin. Yes, and they were supposed to be making war-of this drug lord, and you thought there was a war going on from “the papers. And I recall this is Ameri- can tax méney; did it have to do a lot with that road? I don't know, but I know they bulldozed it because this is virgin teak forest in Burma, These are mountains like you find only in West Virginia, they go suaight up or straight down, thickly covered with hardwood teak. Gigantic. U.S.-made.bull- dozers were being used by the Thais to make this heroin highway. Now, funnily enough a man by the 80 abead-and make it look tike ai name of David Wesley, who is the No, 2 man in our Drug Enforcement Administra~ tion, called me and said: "Bo, that is not a heroin “highway. That is @ graduation road. . Now, if you believe this then I'm from the government and I'm here to help you, Tom.-and all your listeners. At first they denied there was any soad at all. But then he finally said, “We admit there is a road there.” But he said Khun Sa was having a spe- ial military graduation and he didn't~want to have the Thai VIPs that he'd invited have to ride horses for three days coming and then again three days going back. sova oad to his headquarters was built so they ‘could drive there. Well, wait a minute now. I thought, the Thais were supposed to be wiping him out with our money. * : ._.When | saw Khun Sa I was amazed be- Gduse it only took us 12 hours to get to his: headquaners on this new road, When I= ‘saw him he asked me; “Col, Bo, what topk” — solong™ we And I said, “General, I was waiting for: evar todie down” = Fee And he just laughed and said, “It wai newspaper wan” ‘The Thais and the Burmese; who are, communist both, came to him. He’said: “They told me they stood to lose tens of illions of U.S, dollars in drug suppres. sion unless they made it look like they’ were doing something. | told‘them, *You = ‘you want to but T want a highway built = her’> : - ‘And so in exchange for the'road they * ‘$01 to put the headlines in. And it worked, because one of the later headlines showed “= fan American ambassador'giving a very smiling Thai an additional $1.8 anilign for the good job they hal done’ against-Khun ‘= Sh ee ‘Yes, and of course we neéd more. money to fight the drug war, dont we? We better budget more money or it'll never stop the flow of drigi.” 1's not more money we need, it's ener and clean government, Until we.get these cockroaches out of there we're not ‘going. wo have a chance, 1 don't care’ who: © ‘vor for president in'L95g” 7! rabiedns 31Now, Bo, you are a soldier. you have fought for this country and I kro» you are one of the most sincere patriotic Fighting men I've ever heard speak. You're almost a dinosaur in this age of naivete, as you said yourself, But. when you returned to the United States vou did not dreara that your reception would be even colder than chilly. They tried to indict you, I understand. ‘What they did is, they did it with wam- ings. Now, when we first took the viceo- tapes in 1986 I thought we were going 0 seta pat on the back, because here was an ‘opportunity ta stop 900 tons of heroin and discover Who the guys in the government " were that had been dealing in it Twas amazed wi was no inter eqTOvte Whe Hong Then when wear back, they knew that [had gone (athough] I didn’t go on White House authority the second time. The White House knew that | had used a false passpon during my av- tls in the "87 tip into Burma and Iwas called and told that, and this is 2 quote, Bo. if you don't erase and forget every, Box if you con't erase and forget even NANCY REAGAN = Dida't she say "co"? ee thing vou've leamed vou are poing to hun Reseenpe ‘And T said: “Whose govemment? Not rine, not the one my dad died for during World War 11.” And they said: “Bo, knock it off, We are trying to help you.” ‘They said: “You've got to erase and for- 3871 9F youse going ta,set hud yourself. If ‘you don’t cooperate with us you yourself Tndionie mines seo (od the guy—t called him “citizen” ="Citizen, let me tell you something ‘That's an insult to me, to you, and to 200 years of Constitutional goverment.” ‘And so they did. they brought up the only thing they could get against me, Tom: misuse of a passpon. Now, Jane Fonda Used a false passport when she went in 10 avon with the enemy in Hanoi during the war. oe Ollie North and Robe McFarlane used false Irish passports when they went in to Iran to effect an iMlegal arms deal. So, I consider it a™wesny” charge. My trial Comes up on the 12th of September and interestingly enough the maximum penalty if T'm found guilty is five year in prison, asaielony, “ Yow are coimtng up for trial this Sep- ; tember, a little over two months from nom. « . Yeah, on the 12th of September. I have » great faith in the American jury system + and I don’t believe that there's a jury [that would convict me), once they hear the evi- dence. OF course the judge has 16 allow the evidence to be heard. + Ofcourse. * And of course in Scott's case there” wasn't any evidence even presented. He was just sentenced to five years in prisgn. ‘And be spent 14 months in the Lom- _ Poc federal prison. . Fourteen months away from‘his two small children, He had a litle son who was Just a year old, and a wife. There was no employment, and his wife did not work. It was really a strain on him and his family just because they were trying to keep us from bringing the truth before the Ameri- can people.Right, and Scott was in reality sale nicer like Yourself to go after the miss- ing in action, and he was. what, a Navy Interestingly enough Scon Weekly was 3 classmate of Olfie North in the naval academy, He was in the Navy Seals over in Vietnam, He's been with me twice on res- cue missions for prisoners of war and he was with me on the initial mission when 1 Went into Burma in 1986. Now; I understand our government is trying to discredit you on those missions into Laos and so forth. Well, what they do is thew conduct 2 srieer campaien and a hare campaisi “They put out a National Security Council memo—undated. unsigned—that basically akey me look like some kind of a charac- ter, But the truth is that all you have to do is read “Time” magazine or wonder how Bo Gritz could have top secret special ane telligence information that only the Joint Chiefs of Staif had if 1 wasn't working within the government. How could I have 1.500 photographs going into Laos? Why would they, over Voice of America—ahich is not an NBC affifiate. i's run by the U.S. Information ‘Agency—put out information that Ameri- ‘can commandos were in Laos to rescue prisoners if they wanted to stop us? And it was the U.S. government that asked us t0 go. But | don’t think they ever intended for us to actually come back with Prisoners, They wanted it 10 look Like thay were doing something just like they look like they were doing something with Khun Sa, So it doesn’t make any difference, Tom, ‘what happens to me. I'm just one man. I've been a soldier. never wanted to be anything but a soldier, of this nation. If 1 go down swinging and it helps this nation then I'm satisfied, Well, you know, Bo, we've only got five more minutes and I know-you're going to go out and .. . By golly, ladies and gentlemen, he's got a Boy Scout thing to go to tonight, and he’s a ded cated man . . . He has to leave here in about five more minutes. Bul in the next few minutes, Bo, { wanted to go into one other aspect of this thing. You've got a trial coming up and that should be a sensational trial with lots of media. You think there will be any media coverage? Well, a tot of it will depend upon how much evidence the judge will allow in. 1 want to make the tial a forum to get out the information we have on prisoners of war and the government dealing in dregs and the only reason [ have ever used this false passport, and I'm not denying that 1 used it . ‘Asa matter of fact, the U.S. atiomey is having trouble with that, But most people come in and claim the Fifth Amendment fr they would deny it. I'm saying. yes: 1 used a false passport. I used it many + times—every time in pursuit af US. pris; oners of war, Aatd I've got that passport. I'm willing to show it to the jury. It shows many en- ies, every entry only going to one place, All right. I'm looking at this like the listeners out there. We probably have thousands of TV satellite listeners sit- ting there saying, “How come I never heard this’ I want (o point out that the first time 1 met you it was af a press conference that you had called in Los Angeles, at the Press club, and every network, all the local television and the Los Angeles “Times” and the “Daily News” and As- sociated Press weee all there, You told this story and you documented it with videotapes and the only newspaper that brought it out was The SPOTLIGHT. 2 Yeah, The SPOTLIGHT, The reason is. ‘we found out later. every assignment edi- or for all of the large papers and televi- sion—NBC, ABC, CBS—wanted 10 do the sory but, “Someone at the top shched it Dike yeu go hink thatthe conspir- ‘cy includes people that control the media, ‘And they're not going to let anything out ‘hat might shake their house of cards. No, “conspiracy” is a bad word, you know, it’s a terrible thing t0.be.so con- troversial, And yet, here we have Ollie North and he is getting all of this play, while the people ia the right wing were saying, “This guy should get a medal and not go to jail” - ‘What you need, Bo, is a beautiful sec- retary" - That may help, You know one thing. 39Tom, thil 4x se got ts he sem careful of, sind that 1s, if yuu ute being raped you Gon wnt to tah in E61 tomes, unlens you Tike being raped. Thi nation 1s being attacked, This nae tion is. without knowing it. fighting @ war against a destroyer for its very life. And Seve got to speak out in strong terms. and the hell sith being coniroversial. Because the only way we ate going 10 survive is to speak out und 10 make a stand, Well, I agree with you. Bo. and we sre nuing to help you speak out. I'll be Watching your trial. You are running for Congress in your area of Nevada, is that correct? Yes. sit. I'm a Republican and I'm on the- Republican ticket. The way I figure it 4s. that you have got to take a stand and a platform and planks to make it firm, like 1 do. As a soldier I fought for this nation against foreign enemies. Now as a soldier Tm willing to Gent those domestic ene- . mies and the way to fight is probably . through the Constitutional system. ‘And 1 intend to do it and I'll be a cone gressman not only.for southern Nevada, but for every American out there that wanis to see this nation a nation under * God. . OLIVER NORTH RICHARD SECORD : € + ++ Bo Grits ays patious shouldn't prof,Khun Sa: Here’s How to Eradicate Problem The following is a fener wrinen bx Thar Gen Khun Sa. overlord of Asia's “Golden Triangle” dewg producine and expuruing region. The letter wat written to the US. Justice Department im June of 1967, and in ut Khun Sa asks the US. government io help his people get our of the drug expurting business. The general hos made the same offer in previous communicetions, set no one in the government has Seen fit to take him up on tt Ref, No. TRC/FA-0687 Date: June 28. 1987 : To USS. Jusuce Deparment. Washington. D.C. US.A. SUBJECT: Imponant fact for te Drugs Eradication Program to be successful Sirs: 7 ‘This lener 10 the U.S. Justice Department is to make it clear about our deepest con em in wishing to help eradicate drugs and forall the American people 25 well a5 the world to know the truth that for the past ($1 years they have been misled to look 'pon us as the main source of all the drug problems. 1. The refusal of the United States government to accept our “SIX YEARS DRUGS ERADICATION PLAN” presented ai the Congressional Hearing by ‘Congressman Mr. Lester Wolff after his visit to Thailand in April 1977, was really & reat disappointment for us. ._. Even afier this disappointment, we continued writing leters wo Presideat Caner and President Reagan forwarding our sincere wish 1 help and panicipate in eradicating drugs. We are really surprised and doubtful as 1o “why the U.S. governent refused ‘sur paricipation and help to make a success of the drugs eradication programm Furthermore, “why the world has been misled to azcuse us as the ‘main cillpni for all the drug trades... while in realty, we are most sincere and willing to help solve the drug problems in South East Asia, Through our own secret investigation, we found out that some high officials in the U.S. goverment’s drugs control and enforcement deparmment and with the influence of comupled persons objected 10 our active paricipation in the drugs eradication pro ram of the U.S. government so as 10 be able to retain their profitable self.inierest from the continuation of the drug problems. ‘Thus. the U.S, goverument and the American people ay well ay the world have been hoods inked. 2. During the pesiad (1968-1975) CIA Chief in Laos. Theos: ley was in the drug business, having contacts wih The Pa aid Dar og Han a lowers. Santo Trafficante acied as his buying and trunsporung agent while Richard | ‘Armitage handled the financial section wah the Bank in Ausraia van aficr she Vigrnam Wasended. when Richard Ammiuge was being posted to the UIS, Embawwy in Thasland, his dealings in the drug business continued as before. He ‘was then acing as the U.S. government official concerning with the drugs problems in South East Asia. After 1979, Richard Armitage resigned from the US. Embassy's posting and set up the “Far East Trading Company” as 2 front for his continuation in the drug trgde and to bribe CIA agents in Laos and around the word .Soon woes 2 se iy Dewees ell a the transposon waht (5 ee Dates nei own oct Gea eRe Somnase fo over 1 seats Amlage woppomed hve men th Lace aod Thollane cat se provity fo his erop tae apd font of the cavh were deperied wh ine beaks Ausiraia which was to he wed in Busing hi way for quicker promonem tehroney “Within the month of Jol). 1980, Thailand's English newspaper Bangkok “Post vrcluded a news-repon that CLA agents sere using Australia we auransivbise for thet c-vg bovine and the banks in Ausirlia for depoviling transfering the large sum of 1 one) involved Venfications of the news report cun be made by the U.S. Justice Department with bangkok “Post™ and in Australia, Oiher facts given herewith have been drawn out from our Secret Reports files soa to present fo YoU ofthe real facts 25 to “why the dave preblemJs being prolonsed til toons.” 3. Finally, we sincerely hope in the nearest future to be given the opportunity to sztively take part in helping the U.S. government, the Ameticans and people of the orld in eradicating and uprooting the drug problems . Uremain Yours Respectfully, : Vice Chairman THAILAND REVOLUTIONARY COUNCIL. KHUN SA —. KH Sas | Gea. Khun Sa confirms Bo Gritr's allegations. * | |ww Pan Il Friday, Avgust 19. Ima ® Hee Angelee Simes Cover-Up Alleged in Drug Agent’s Deatt By KIM MURPHY, Timer Stef Writer Lawyers for wo of three men accused in the minder of US. arug agent Enrique Camarena 6216 ‘Thursday they have evidence that the US. government has falled 1 prosecute one of Menco's major Grog smugglers, because he has secretly provided nancial suppor. and arms assistance to the Nieara- sguan Contras. In a motion filed in Los Angeles federal cour, the defense claims that it has received new Drug Enforcement Administration ree ports indieating that Miguel Felix- Gatlarda, a suspect in the Camar- cena case who has not been indicled, Wvaneed more than $150,000 19 the Nicaraguan rebels through his pi fot, Werner Lotz, Defense lawyers said the DEA reports reveal that Lotz, who now an informant for the US, government, told DEA agents in November chat Felix-Gallarde was “a big supporter” of the Contras and was also involved with Law in smuggling arms into Nicaragua. “From an examination of all the available evidence, it is apparent thal various agencies of the federal government. including the CIA, were aware of Felix-Gallario's cow caine smuggling activities and have purposefully ignored them doe to Felix-Gallardo's ‘chanuable ‘contributions’ to the Contras,” t- tomeys Barry Tarlow and Donald Randolph, represenuing. defendant Jesus Felix-Guuerres, ead in their mouien. The wo lawyers, joined by at- tomeys for defencant Rene Marin lugo-Urquider, accused the government of covering Up evi- Gence that Felix-Galiardo paruci- pated in the torture and murder of Camarena to “avoid the embar~ rassment of disclosing compelling ‘evidence that the ‘freedom fight of the Contras was funded by illicit rag revenues with the tacit ap- proval of branches of the United States government ‘According to the court papers, Lou told DEA agents that Felix: Gallardo had advanced Low “be- tween $150,000 and $170,000" for ransler to the rebels—money that Low was apparently expecied 10 repay—and was, himself, a sup- porter of the Contras, Government prosecutors have admitted that Felix-Gallardo, be» lieved tobe one of Mexico's largest manana and cocaine tralfickers, may have had some role in the lucnap and murder of Cemarena and his pUot, AUlrede Zavais-Ave- dar, in Guadalajara in February of 3885, But the USS. attomey’s office in Los Angeles refused Thursday to ‘comment on the new defense alle- {tions or the status ef any snvesti- Bion involving Felix-Gallardo. “We will respond to the mations filed today in our oppontion papers, which will be filed Mendey," US. Auy. Robert C. Bonner said through a spokeswoman. ‘ADEA spokesman in Washing- ton said Felix-Gallardo is now being sought by Mexscan authori- ues for “carplicity” in Camarena’s ‘murder. “He is very big, and very significant in our view,” the spokesman said, “He's a much- sought-after fugitive and bebeved tebe in Memes.” Defense lawyers have refused to publicly disclose any of the reports ‘upon which they base their allega- ons about Felix-Gallardo's pur- Ported involvement in the murder for in support of the Nicaraguan rebels, ‘But according w their court, papers, some of the evidence comes from a mysterious new transcript of the interrogation of Camarena. which was produced by the gov- ernment three weeks into the tial. ‘The government has said it does rot have the tape from which the anseript was derived and has Felused to disclose in open court how the transcript was obuained. ‘Political Pressure! Tarlow and Randolph have said they believe the transenpt_ was obtained through “political pres- sure” exerted by the US. govern- ment on the government of Mexico. ‘Two tape recordings of the tor- ture session have already been played to the jury, both of whieh appear to inenimunite the govern- ment’s key suspect in the case, rug baron Rafzel Caro-Quintero, who has been indicted along wich the three men now facing tal in _ Los Angeles, but who temains i Mexean custody, -230- +? deBut defense lawyers say the new wranseript reveals that Camarena told his captors chat it was Felix- Gallardo who was the “most impor - tant” target of the DEA in Guada- Jajara. The transeript also purport edly reveals that Camareaa had seen Felix-Gallardo's car in the past at the Guadalajara residence believed to have been the scene of the torture-murder. ‘The defense has also introduced evidence that a photograph of Camarena was found at Felix-Gal- Jardo's house a few days after the murder, when he fled Guadalajara. ‘The new evidence is critical to the defense, because it appears to but tress their argument that Caro. Quintero and his associates were set_up as “sacrificial lambs” by corrupt Mexican authorities to cov er up for the real culprits, Cases Agninst 3 Felix-Gutierrez is not accused of the murder, but of helping Caro- Quintero flee Mexico shortly after the killing. Verdugo-Urquidez and a third defendant, Rau! Lopez-Al- varez, are accused of being at the scene of the interrogation and murder. Assistant US. Attys. Jimmy Gu- rule and Roel Campos, who are prosecuting the case, have said that evidence against Felix-Gallardo does not absolve Caro-Quintero his associates of responsibility. "Caro-Quintero may have had assistance from other Mexican traf- fickers who may have had an interest in the information to be forced out of Camarena.” the gov- ernment said in papers filed with the court. “Any evidence of Pelix- Gallardo's criminal participation is not exculpatory, unless it further shows that Caro-Quintere did not participate in any way in the Jadnapings and murders.” Government prosecutors said they have already introduced evi- dence that Camarena had headed a massive investigation into Caro- Quintero’s marijuana operations in Mexico, resulting in plantation raids that had cost Caro-Quintero's organization at least $5 billion in lost profits, atNUGAN HAND BANK OF AUSTRALIA Nugan Hand Bank of Australia handled funds from international drug trafficking, ysRH Be eae ane iy Ha nd it a i ipl apeey i id Hea ain’ i uci ub di age) pall} nee Bou nee i ae tee ay aa jitiial cli a Hat luna! Abn ih Lita ate ih dudanhs “Feeteg *Aage 4 ages . 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Banker Frank Nugan In Final Days Faced A Charge of Fraud But His Violent Death Came As Surprise to Associates; His Partner Disappears A Phone Call From ‘Charlie’ By Janu Kemer BUT Repetea Tan Wass Brana tn, SYDNEY, dusrata—There were severt! boy 4 mulinllien-dotar es: ute for bis faruly. And be apparendy tae ‘Whipped # genous raking prose. ‘BL ar the fateh date Of dan 26 ap Prouched, Mr. Napan war eoelratied Woh {eo serious feral problems that threatened Possible ruin foc bis bunk. In resorpect orrover, there weve sis of eccrine Be havior Gal stodé have aened is warn bs. Me. Nupan bad sopped spending mest of fis Sve at Nupaa Hasd’s Spey beasauar- ters and be wis malay more Rrstclas fe {Wins around We word on mission his esse Cities didn always ndersund. A Walk With Jesus He began going to church dally and scrawiing mymcal notes: his Bible, tle was always wid im. A sample: “i place {his day my ie, my wark, my koved ones in ie Lord's hands. He i #0 good tod Kell be a goad day 1 believe I elieve It wll bea Hloniows, magical, mlriculow day. He i SOO me now. Jers walks with ie bows VE ualize “Won eusomers worlwide, + Prayense, arualue, One of ir, Netan's eral proolems ew ‘out of 4 15TT sctnanl ita bad develope ‘over a frut ang vegetable business rus by Mr. Nuran's rower, Ken, in their bore town, Gritih, 406 miles vd froma Syne. Several lange insurance companies Mg 80 ured 2 47h Interest In Ov busines during 2187 stock gale 1 raise 1708000 for dew cannery. Later, ey complained al Ret Bugas was elverting funds ‘Aucitors auscovered big cash payolls to people apparently need te rarceies trate Ken Noran explained that Oe paymec were 1 {rut farmers whe wate (e remain Anonymous (or tu: reasons and 40 were i Ing dope dralers’ amet as peeudonyms ‘Amid much publicty, Ken Nugan fred Oe fugitors ans kicked’ ine Insurance men otf the company's bosre Tis was dove at two rowdy thareholser eeiney At waled drunks and Whips wil newly ised Testare Hockboidings pacted ‘he hall and rrayed procedural roles Frank ‘Nugaa had beiped orcbestrate Bs brovver& Aritery, wad eule officials fled trad charges arunn boos Brothers kad private detective Dey Bred. Sindag Wid a Geseral Daring the two years of court hearings see the churros would be ined, one of 5 i é Re Rep Hand Hava Gea Bick ays wat ated the court hearings Just i etisty Bis cures. E i it ‘ad Ghat Ken also transferred 1 lot of Fan Hand's eck in the frlt company w the ives of Frank Nugan and Michael: Hand, {he ice chatrman of tbe Bask, Mr HUI ys De arroed vainly Ua Ube stock shoul be an set ofthe Bank. ‘Less than a month before be dled, Frank Nopan leroed that be ang hs brother would be ‘ined for fraud. a development Lat seemed sire to allect is Baak'y reputation, ike Nuraa’s tral pow if scheduled for later is year, after many delays.) ‘A Probiem With Price Waterhouse ‘The ouver problem probably weighing oo Frank Nugan's mind on the night of Jan. 2 vas the relusl of Price Waterhouse & Cas Bahamas office to sign Nugan Hand bank's ‘books far the year ended June 3, 1978. (The Batamian otlice covers the Cayman Is lands, where the bank tad legal headgear ters because of the salt rerulatery climate there.) Mr. HI had taker the Books (0 the Caymans ta October 18%. The loeal Price Waterhouse partners had approved Use| ‘books fer the two previous years but Us lume there was a new Price Waterhouse au: itor on apd, Clive Jennings. Ht balked “There were significant gaps In the re cconis.” Mr. Jennings S278, Mr. Hil has tested (Bat he rewrote the coun's annually on Instructions Irom Frank Nugan, He said that In 1879 hus bot ordered H milion in customer accouRts Pires Tura to Peoe 16, Coloma SHO-~iustrallan Mystery: Head of Nugan Hand Bank Had Serious Legal and Personal Problems in Final Days Conunved From-First Pope - witien off as having been paid ta cash, the boots, To clean the Bank's books, * accounts were assigned io Nugun Hand amma, whieh Me. Hill said wad macy 4 ret: 1 ervatr lor phony accounts needed to the books, Mast of the bank's 117 mulllce th slated assets were really 1OUs from cornpa- {ales that were secredy 2Hlated with and ‘hese bopus assets were aliered as Seeded to + even Be sumbers, De. Full has testified that be was accom agi Bg te 3g wets lnagl TT x i EE | Fi B | f i & E | 3 Hi iy ge i an u i # E f i E uy ig pu i Hirtag a New President Dr Mugen was log Bs rp om Mae! aad ts ob Ocobet ECR Aenea ‘president of the entire Nugan Hand proap of companies. Mr. Beasley was Nugan Hand's farsi real banker. A former Federal Reserve Dank examiner, be had become the pres: ‘dent of Great American Banks Ine. of North Mum, Fla, when Marvin Warner, lis chet ‘executive, had Jef to become Presigeat Cat ter's ambassador to Switzeriend. When Mr. Warner returned, MP. Betsley left 10 nin Ngan Hand. Mr. Beazley is now the pres: Gent of Gullsream Bank in Boca Raton, Pua, whose one-bant holding company is Lunied on the New York Sizck Fachange, Mr. Beazley bas tid tnternewert in cluding this newspaper that be never really was Une president of Nugan Hand, but “was ut Were on an interim basis (to) see If Nt ee ify i fe te é by resting na ae i | ay ee l E fl i { E E i H tl H g eine RE i i i E EE i bE 0 tie! fense and iecarity ugencies. Gea, Manor belped run Nupan Hand's Philippine 1d Mearrs, McDonald and Pauker z aout what The Malayein man ealied “our resent noncotficin) bARLINg acuviver.” All of Wen countries and others Lz be reion, Uncluding Aurratia, have Ugh reririctond e@ ting money out of the country. wed ‘was Magus Hand's main allracion & tuning cunomers. Mugen Hind wir Wlowed Lalo many countries only under Ut belie! at ft Was 2 Lnlernatiena! Unde broter, That summer his Ameriean-tors wile, Lee, had returned to her parenis Ln Nash’ ville, Temn.. Uking the couple's two chil dren. Records show thal she ran up 21.200 4 Bilis on her American Express card in ine meats, AUSCraNAR Ueiidalor Jobe O'Brien says th she alse took $1 milion “| waver’ checks with ber. She bas resised Bumerous antempes by Us reporer Uo inter i Heat igi il Hetre ft ghitee oi a a if iF Ie i be Oe i ul u z 3 i i git Hs t F e # K i | x i 8 E ae i aBE i ib Ag i i ul If an UE Ee i i t 3 i H E te & & E 5 FA u Ea it Bt ae ne : ie BL xo When Nuran Hand's liquidation came on ell 1, 1880, Wiltred Gregory of the firm's Mani office saya Gat be and Gen. Muro ‘were warned by their lawyer, Willlam Qui HLA. leave the Phlppinet or Wey “sould ‘wand up ta Jail” Mr, Gregory says tat be Sayed but thal Gen. Manor leh overnight Gen. Manor, pow runsing a reured officers” Adioclation in Virginia, wouldn't say when ‘or why be eft the Phllpplnes, and Mr, Qua: 1 tayt be ear't discuss bs advice lo cil: ‘he afice for constKe ee a Ta ca ile i LE er sabe ay a4] Hlth tant mae a i gle aa ® 5 ue aedgegsz ania piers bane ans eae (aia HEINDIVIDUALS INVOLVED IN BOTH MIA AND DRUG TRAFFICKING MATTERS Some of the same people involved MIA matters are reportedly also involved in the satanic drug. cult network. ashThe following was furnished by the American Defense Institute, 1055 North Fairfax Street, Second Floor, Alexandria, Virginia 22314 >\ i 2661 ysnBny ontondy “PIS JSBAYINO UI UONDY UF BuISSIP] 10 JEM JO JAUOSHe [{PS JaUUOSIAd BD!/UBS UPRDLOWYY 99ZZ JOJ JUNDIIE 0} SOYA S,JUBLULAAOB *S"f) BY} 0} Pajejas s]UaLUNdOp payissejd-ap AjJUada! Basu} SOPN|DU! 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