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by Peter Dale Scott
March 13,
2014
from
TheAsiaPacificJournal Website
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Peter Dale Scott, a former Canadian diplomat and English
Professor at the University of California, Berkeley, is
the author of Drugs Oil and War, The Road to 9/11, and
The War Conspiracy: JFK, 9/11, and the Deep Politics of
War.
His
most recent book is American War Machine: Deep Politics,
the CIA Global Drug Connection and the Road to
Afghanistan.
His
website, which contains a wealth of his writings, is
here. |
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The
concept of the Deep State
is at the
forefront of today�s news.
In this March 2014 article
published by
Asia Pacific Journal and Global Research,
Professor Peter
Dale Scott analyses the role of �Deep State�,
namely the
Shadow Government
integrated by
Wall Street, US intelligence,
the military
industrial complex, the Washington think tanks, etc.
This secret government
overshadows the
official government,
including the
White House
and the US
Congress.
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In the last decade it has
become more and more obvious that we have in America today what the
journalists Dana Priest and William Arkin have called,
two governments:
-
the one its
citizens were familiar with, operated more or less in
the open
-
the other a
parallel top secret government whose parts had
mushroomed in less than a decade into a gigantic,
sprawling universe of its own, visible to only a
carefully vetted cadre - and its entirety�visible only
to God. 1
And in 2013, particularly
after the military return to power in Egypt, more and more authors
referred to this second level as America's "Deep
State."2
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Here for example is the
Republican analyst Mike Lofgren:
There is the visible
government situated around the Mall in Washington, and then
there is another, more shadowy, more indefinable government that
is not explained in Civics 101 or observable to tourists at the
White House or the Capitol.
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The former is
traditional Washington partisan politics: the tip of the iceberg
that a public watching C-SPAN sees daily and which is
theoretically controllable via elections.
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The subsurface part
of the iceberg I shall call the Deep State, which operates
according to its own compass heading regardless of who is
formally in power.3
At the end of 2013 a
New York Times Op-Ed noted this trend, and even offered a
definition of the term that will work for the purposes of this
essay:
DEEP STATE n.
A hard-to-perceive
level of government or super-control that exists regardless of
elections and that may thwart popular movements or radical
change.
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Some have said that
Egypt is being manipulated by its Deep State.4
The political activities
of the Deep State are the chief source and milieu of what I have
elsewhere called "deep politics:"
"all those political
practices and arrangements, deliberate or not, which are usually
repressed rather than acknowledged."5
Others, like Tom
Hayden, call the Deep State a "state within the state," and
suggest it may be responsible for the failure of the
Obama
administration to follow the policy guidelines of the
president's speeches:
We have seen evidence
of a "state within the state" before, going back as far as the
CIA's operations against Cuba. In Obama's time, the president
correctly named the 2009 coup in Honduras a "coup", and then
seemed powerless to prevent it.6
This development of a
two-level or dual state has been paralleled by two other dualities:
-
the increasing
resolution of American society into two classes - the "one
percent" and the "ninety-nine percent" - and the bifurcation
of the U.S. economy into two aspects.
-
the domestic,
still subject to some governmental regulation and taxation,
and the international, relatively free from governmental
controls. 7
All three developments
have affected and intensified each other - particularly since the
Reagan Revolution of 1980, which saw American inequality of wealth
cease to diminish and begin to increase.8
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Thus for example we shall
see how Wall Street - the incarnation of
the "one percent"
- played a significant role in increasing the Deep State after World
War Two, and how three decades later the Deep State played a
significant role in realigning America for the Reagan Revolution.
In earlier books I have given versions of this America-centered
account of America's shift into empire and a Deep State.
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But another factor to be
mentioned is the shift of global history towards an increasingly
global society dominated by a few emergent superpowers.
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This trend was
accelerated after the Industrial Revolution by new technologies of
transport, from the railroad in the 19th century to the
jet plane and space travel in the 20th.9
In the fallout from this rearrangement we must include two world
wars, as a result of which Britain ceased to act as the dominant
superpower it had been since Napoleon. Not surprisingly, the Soviet
Union and the United States subsequently competed in a Cold War to
fill the gap.
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It was not however
predetermined that the Cold War would be as thuggish and covertly
violent as for decades it continued to be.
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For that we should look
to more contingent causes on both sides of the Iron Curtain -
starting with the character of Stalin and his party but also
including the partly responsive development of
the American Deep State.
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The Deep
State, The Shadow Government and the Wall Street Overworld
The "Deep State" was defined by the UK newsletter On Religion
as,
"the embedded
anti-democratic power structures within a government, something
very few democracies can claim to be free from."10
The term originated in
Turkey in 1996, to refer to U.S.-backed elements, primarily in the
intelligence services and military, who had repeatedly used violence
to interfere with and realign Turkey's democratic political process.
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Sometimes the definition
is restricted to elements within the government (or "a
state-within-the state"), but more often in Turkey the term is
expanded, for historical reasons, to include "members of the Turkish
underworld."11
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In this essay I shall use
"Deep State" in the larger sense, to include both the second level
of secret government inside Washington and those outsiders powerful
enough, in either the underworld or overworld, to give it direction.
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In short I shall equate
the term "Deep State" with what in 1993 I termed a "deep political
system:"
"one which habitually
resorts to decision-making and enforcement procedures outside as
well as inside those publicly sanctioned by law and society."12
Like myself, Lofgren
suggests an ambiguous symbiosis between two aspects of the American
Deep State:
-
the Beltway
agencies of the Shadow Government, like the
CIA and
NSA, which have been
instituted by the public state and now overshadow it.
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-
the much older
power of Wall Street, referring to
the powerful banks and law
firms located there.
In his words,
It is not too much to
say that Wall Street may be the ultimate owner of the Deep State
and its strategies, if for no other reason than that it has the
money to reward government operatives with a second career that
is lucrative beyond the dreams of avarice - certainly beyond the
dreams of a salaried government employee.13
I shall argue that in the
1950s Wall Street was a dominating complex.
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It included not just
banks and oil firms but also the oil majors whose cartel
arrangements were successfully defended against the U.S. Government
by the Wall Street law firm
Sullivan and Cromwell, home to the
Dulles brothers.
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This larger complex is
what I mean by the Wall Street overworld...
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The Long
History of the Wall Street Overworld
Lofgren's inclusion of Wall Street is in keeping with Franklin
Roosevelt's observation in 1933 to his friend Col. E.M. House
that,
"The real truth� is,
as you and I know, that a financial element in the larger
centers has owned the Government ever since the days of Andrew
Jackson."14
FDR's insight is well
illustrated by the efficiency with which a group of Wall Street
bankers (including Nelson Rockefeller's grandfather Nelson Aldrich
and Paul Warburg) were able in a highly secret meeting in 1910 to
establish
the Federal Reserve System - a
system which in effect reserved oversight of the nation's currency
supply and of all America's banks in the not impartial hands of its
largest.15
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The political clout of
the quasi-governmental Federal Reserve Board (where the federal
Treasury is represented but does not dominate) was clearly
demonstrated in 2008, when Fed
leadership secured instant support from the successive
administrations of a Texan Republican president, followed by a
Midwest Democratic one, for public money to rescue the reckless
management of Wall Street banks:
banks 'Too Big To
Fail,' and of course far 'Too Big To Jail,' but not Too Big To
Bail.16
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Wall Street
and the Launching of the CIA
Top-level Treasury officials, CIA officers, and Wall Street bankers
and lawyers think alike because of the "revolving door" by which
they pass easily from private to public service and back.
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In 1946 General
Vandenberg, as Director of Central Intelligence (DCI), recruited
Allen Dulles, then a Republican lawyer at Sullivan and
Cromwell in New York,
"to draft proposals
for the shape and organization of what was to become the Central
Intelligence Agency in 1947."
Dulles promptly formed an
advisory group of six men, all but one of whom were Wall Street
investment bankers or lawyers.17
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Dulles and two of the six
(William H. Jackson and Frank Wisner) later joined the agency, where
Dulles proceeded to orchestrate policies, such as the overthrow of
the Arbenz regime in Guatemala, that he had previously
discussed in New York at the
Council on Foreign Relations.18
There seems to be little difference in Allen Dulles's influence
whether he was a Wall Street lawyer or a CIA director.
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Although he did not
formally join the CIA until November 1950, he was in Berlin before
the start of the 1948 Berlin Blockade,
"supervising the
unleashing of anti-Soviet propaganda across Europe."19
In the early summer of
1948 he set up the American Committee for a United Europe (ACUE), in
support of what became by the early 1950s,
"the largest CIA
operation in Western Europe."20
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The Deep State
and Funds for CIA Covert Operations
Wall Street was also the inspiration for what eventually became the
CIA's first covert operation: the use of,
"over $10 million in
captured Axis funds to influence the [Italian] election [of
1948]."21
(The fundraising had
begun at the wealthy Brook Club in New York; but Allen Dulles, still
a Wall Street lawyer, persuaded Washington, which at first had
preferred a private funding campaign, to authorize the operation
through the National Security Council and the CIA.)22
Dulles's friend Frank Wisner then left Wall Street to oversee
an enlarged covert operations program through the newly created
Office of Policy Co-ordination (OPC).
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Dulles, still a lawyer,
campaigned successfully to reconstruct Western Europe through what
became known as the Marshall Plan.23
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Together with George
Kennan and James Forrestal, Dulles also,
"helped devise a
secret codicil [to the Marshall Plan] that gave the CIA the
capability to conduct political warfare. It let the agency skim
millions of dollars from the plan."24
This created one of the
earlier occasions when the CIA, directly or indirectly, recruited
local assets involved in drug trafficking.
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AFL member Irving
Brown, the assistant of AFL official Jay Lovestone (a CIA
asset), was implicated in drug smuggling activities in Europe, at
the same time that he used funds diverted from the Marshall Plan to
establish,
a "compatible left"
labor union in Marseilles with Pierre Ferri-Pisani.
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On behalf of Brown
and the CIA, Ferri-Pisani (a drug smuggler connected with
Marseilles crime lord Antoine Guerini), hired goons to shellack
striking Communist dock workers.25
An analogous funding
source for the CIA developed in the Far East, the so-called,
"M-Fund," a secret
fund of money of enormous size that has existed in Japan [in
1991] for more than forty years.
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The Fund was
established by the United States in the immediate postwar era
for essentially the same reasons that later gave rise to the
Marshall Plan of assistance by the U.S. to Western Europe,
including the Federal Republic of Germany�
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The M-Fund was used
not only for the building of a democratic political system in
Japan but, in addition, for all of the purposes for which
Marshall Plan funds were used in Europe.26
For at least two decades
the CIA lavishly subsidized right-wing parties in countries
including Japan and Indonesia, possibly still using captured Axis
funds.27
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(One frequently
encounters the claim that the source of the M-fund was gold looted
by Japan during World War Two - "Yamashita's gold").28
As a general rule the CIA, rather than assimilating these funds into
its own budget, appears to have left them off the books in the hands
of cooperative allied powers - ranging from other U.S. agencies like
the Economic Cooperation Administration (ECA. set up in 1948
to administer the Marshall Plan) to oil companies to powerful drug
kingpins.29
The CIA never abandoned its dependency on funds from outside its
official budget to conduct its clandestine operations.
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In Southeast Asia, in
particular, its proprietary firm Sea Supply Inc., supplied an
infrastructure for a
drug traffic supporting a CIA-led
paramilitary force, PARU.30
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The CIA appears also to have acted
in coordination with slush funds from various U.S. government
contracts, ranging from the Howard Hughes organization to (as
we shall see) the foreign arms sales of U.S. defense corporations
like Lockheed and Northrop.31
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Lockheed
Payoffs and CIA Clients - The Netherlands, Japan, Italy, Indonesia,
and Saudi Arabia
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Kodama Yoshio,
war
criminal, drug trafficker,
and
purveyor of Deep State US funds
to
Japanese politicians
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Through the 1950s payouts from the M-fund were administered by
Kodama Yoshio,
"probably the CIA's
chief asset in Japan;" while "All accounts say that after the
end of the occupation, the fund's American managers came from
the CIA."32
Kodama also received and
distributed millions of funds from Lockheed to secure military
contracts - an operation the CIA knew about but has never admitted
involvement in.33
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Lockheed's system of
payoffs was world-wide; and one sees CIA involvement with it in at
least four other countries:
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the Netherlands
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Italy
-
Indonesia
-
Saudi Arabia
(Lockheed, the builder of
the U-2, was a major CIA-cleared contractor.)34
The beneficiary in the Netherlands was Prince Bernhard, a
close friend of CIA directors Walter Bedell Smith and Allen
Dulles, and the organizer of
the Bilderberg Group.35
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In the case of Italy,
payments were handled through a contact ("Antelope Cobbler") who
turned out to be whoever was the Italian Prime Minister of the
moment (always from one of the parties subsidized earlier by the
CIA).36
In the revealing instance of Indonesia, Lockheed payments were
shifted in May 1965, over the legal objections of Lockheed's
counsel, to a new contract with a company set up by the firm's
long-time local agent or middleman, August Munir Dasaad.86
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This was just six months
after a secret U.S. decision to have the CIA covertly assist,
"individuals and
organizations prepared to take obstructive action against the
PKI [Indonesian Communist Party]." Over the longer term this
meant identifying and keeping tabs on "anti-regime elements" and
other potential leaders of a post-Sukarno regime.37
Although Dasaad had been
a long-time supporter of Sukarno, by May 1965 he was already
building connections with Sukarno's eventual successor, Gen.
Suharto, via a family relative, General Alamsjah, who knew
Suharto and was the beneficiary of the new Lockheed account.38
�
After Suharto replaced
Sukarno, Alamsjah, who controlled certain considerable funds,
at once made funds available to Suharto, earning him the gratitude
of the new President.39
In July 1965, furthermore, at the alleged nadir of U.S.-Indonesian
aid relations, Rockwell-Standard had a contractual agreement to
deliver two hundred light aircraft (Aero-Commanders) to the
Indonesian Army (not the Air Force) in the next two months.
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Once again the commission
agent on the deal, Bob Hasan or Hassan, was a political associate
(and eventual business partner) of Suharto.
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More specifically,
Suharto and Bob Hasan established two shipping companies to
be operated by the Central Java army division, Diponegoro. This
division, as has long been noticed, supplied the bulk of the
personnel on both sides of the
Gestapu coup drama in September
1965 - both those staging the coup attempt, and those putting it
down.40
While this was happening, Stanvac (a joint venture of the Standard
companies known later as Exxon and Mobil) increased payments to the
army's oil company, Permina, headed by an eventual political ally of
Suharto, General Ibnu Sutowo.
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Alamsjah is said to have
been allied with Ibnu Sutowo in plotting against Sukarno, along with
a well-connected Japanese oilman, Nishijima Shigetada.41
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After Suharto's overthrow
of Sukarno, Fortune wrote that,
"Sutowo's still small
company played a key part in bankrolling those crucial
operations, and the army has never forgotten it."42
We shall deal later with
the special case of Lockheed kickbacks to Saudi Arabia, which were
far greater than those to Japan.
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It is important to note,
however, the linkage between Middle East oil and arms sales:
as U.S. imports of
Middle East oil increased, the pressure on the U.S. balance of
payments was offset by increased U.S. arms sales to the region.
"In the period
1963-1974, arms sales to the Middle East went from 10 per
cent of global arms imports to 36 per cent, half of which
was supplied by the United States."43
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Iran in 1953 -
How an Oil Cartel Operation Became a Job for the CIA
The international lawyers of Wall Street did not hide from each
other their shared belief that they understood better than
Washington the requirements for running the world.
�
As John Foster Dulles
wrote in the 1930s to a British colleague,
The word "cartel" has
here assumed the stigma of a bogeyman which the politicians are
constantly attacking.
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The fact of the
matter is that most of these politicians are highly insular and
nationalistic and because the political organization of the
world has under such influence been so backward, business people
who have had to cope realistically with international problems
have had to find ways for getting through and around stupid
political barriers.44
This same mentality also
explains why Allen Dulles as an OSS officer in 1945 simply
evaded orders from Washington forbidding him to negotiate with SS
General Karl Wolff about a conditional surrender of German
forces in Italy - an important breach of Roosevelt's agreement with
Stalin at Yalta for unconditional surrender, a breach that is
regarded by many as helping lead to the Cold War.45
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And it explains why
Allen, as CIA Director in 1957, dealt summarily with Eisenhower's
reluctance to authorize more than occasional U-2 overflights of the
USSR, by secretly approving a plan with Britain's MI-6 whereby U-2
flights could be authorized instead by the UK Prime Minister
Macmillan.46
This mentality exhibited itself in 1952, when Truman's Justice
Department sought to break up the cartel agreements whereby Standard
Oil of New Jersey (now Exxon) and four other oil majors controlled
global oil distribution.
�
(The other four were
Standard Oil Company of New York, Standard Oil of California or
Socony, Gulf Oil, and Texaco; together with Royal Dutch Shell and
Anglo-Iranian, they comprised the so-called Seven Sisters of the
cartel.)
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Faced with a government
order to hand over relevant documents, Exxon's lawyer Arthur Dean
at Sullivan and Cromwell, where Foster was senior partner,
refused:
"If it were not for
the question of national security, we would be perfectly willing
to face either a criminal or a civil suit. But this is the kind
of information the Kremlin would love to get its hands on."47
�
48 Wall Street
the
former headquarters of both
Sullivan and Cromwell and
the J.
Henry Schroder Banking Corporation
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At this time the oil cartel was working closely with the British
Anglo-Iranian Oil Company (AIOC, later BP) to prevent AIOC's
nationalization by Iran's Premier Mossadeq, by instituting,
in May 1951, a successful boycott of Iranian oil exports.
In May 1951 the AIOC
secured the backing of the other oil majors, who had every
interest in discouraging nationalization... None of the large
companies would touch Iranian oil; despite one or two
picturesque episodes the boycott held.48
As a result Iranian oil
production fell from 241 million barrels in 1950 to 10.6 million
barrels in 1952.
This was accomplished by denying Iran the ability to export its
crude oil. At that time, the
Seven Sisters controlled almost 99%
of the crude oil tankers in the world for such export, and even more
importantly, the markets to which it was going.49
But Truman declined, despite a direct personal appeal from
Churchill, to have the CIA participate in efforts to overthrow
Mossadeq, and instead dispatched Averell Harriman to Tehran
in a failed effort to negotiate a peaceful resolution of Mossadeq's
differences with London.50
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Allen and John Foster Dulles,
pillars of both the state and the Deep State
�
All this changed with the election of Eisenhower in November
1952, followed by the appointment of the Dulles brothers to be
Secretary of State and head of CIA.
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The Justice Department's
criminal complaint against the oil cartel was swiftly replaced by a
civil suit, from which the oil cartel eventually emerged
unscathed.51
Eisenhower, an open
friend of the oil industry� changed the charges from criminal to
civil and transferred responsibility of the case from the
Department of Justice to the Department of State - the first
time in history that an antitrust case was handed to State for
prosecution.
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Seeing as how the
Secretary of State was John Foster Dulles and the defense
counsel for the oil cartel was Dulles' former law firm (Sullivan
and Cromwell), the case was soon as good as dead.52
Thereafter,
Cooperative control
of the world market by the major oil companies remained in
effect, with varying degrees of success, until the oil embargo
of 1973-74.
�
That the cooperation
was more than tacit can be seen by the fact that antitrust
regulations were specifically set aside a number of times during
the 1950-1973 period, allowing the major companies to negotiate
as a group with various Mideastern countries, and after its
inception [in 1960], with the Organization of Petroleum
Exporting Countries or OPEC.53
Also in November 1952 CIA
officials began planning to involve CIA in the efforts of MI6 and
the oil companies in Iran54 - although its notorious
Operation TPAJAX to overthrow
Mossadeq was not finally approved by Eisenhower until July 22,
1953.55
The events of 1953 strengthened the role of the oil cartel as a
structural component of the American Deep State, drawing on its
powerful connections to both Wall Street and the CIA.56
�
(Another such component
was the Arabian-American Oil Company or ARAMCO in Saudi Arabia,
which increased oil production in 1951-53 to offset the loss of oil
from Iran. Until it was fully nationalized in 1980, ARAMCO
maintained undercover CIA personnel like William Eddy among its top
advisors.)57
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The five American oil
majors in particular were also strengthened by the success of AJAX,
as Anglo-Iranian (renamed BP) was henceforth forced to share
40 percent of the oil from its Iran refinery with them.
Nearly all recent accounts of Mossadeq's overthrow treat it as a
covert intelligence operation, with the oil cartel (when mentioned
at all) playing a subservient role.
�
However the chronology,
and above all the belated approval from Eisenhower, suggest that it
was CIA that came belatedly in 1953 to assist an earlier oil cartel
operation, rather than vice versa. In terms of the Deep State, the
oil cartel or Deep State initiated in 1951 a process that the
American public state only authorized two years later.
�
Yet the inevitable bias
in academic or archival historiography, working only with those
primary sources that are publicly available, is to think of the
Mossadeq tragedy as simply a "CIA coup."
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The CIA, Booz
Allen Hamilton, and the Wall Street Overworld
The "revolving door" also circulates top-level intelligence
officials and the chiefs of the cleared contractors referred to by
Mike Lofgren as part of the Deep State.
�
Tim Shorrock
revealed in 2007 that,
"about 70 percent of
the estimated $60 billion the government spends every year on�
intelligence" is outsourced to private intelligence contractors
like Booz, Allen & Hamilton (now Booz Allen Hamilton) and
SAIC.58
For example Mike
McConnell,
"went from being head
of the National Security Agency under Bush 41 and Clinton
directly to Booz Allen, one of the nation's largest private
intelligence contractors, then became Bush's Director of
National Intelligence (DNI), then went back to Booz Allen, where
he is now Executive Vice President."
Intelligence officers in
government write the non-competitive contracts for the private
corporations that they may have worked for and may work for again.59
�
And over the years the
"revolving door" has also exchanged personnel between
Booz Allen
and the international oil companies served by the firm.
The original firm of Booz, Allen, & Hamilton split in 2008 into Booz
Allen Hamilton, focused on USG business, and Booz & Company in New
York, assuming the old company's commercial and international
portfolio.
�
Booz Allen Hamilton is
majority owned by the private equity firm
the Carlyle Group, noted for its
association with political figures like
both presidents
Bush.60
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Booz Allen Hamilton Headquarters
�
Lofgren points to the Deep State importance of Booz Allen Hamilton,
99 percent of whose business dependent on the U.S. government.61
�
Booz Allen has been
linked in the media to NSA ever since its employee Edward Snowden
decamped with NSA records. But Booz Allen, one of the oldest and
largest of the "cleared contractors," has been intertwined with the
CIA's covert operations since Allen Dulles became CIA Director in
1953.62
�
In the same year, Booz
Allen began,
"to take on several
overseas assignments�: a land-registration system in the
Philippines, a restructuring of Egypt's customs operations and
textile industries, and work for Iran's national oil company."63
All three assignments
overlapped with CIA covert ops in 1953, including the Philippine
land distribution program which Edward Lansdale promoted in order to
fight a Huk insurrection, and the CIA's operation TP/AJAX (with
Britain's MI6) to rescue the Anglo-Iranian oil company (later BP).64
�
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Miles Copeland, Jr.,
ex-CIA,
ex-Booz Allen & Hamilton,
ex-Khashoggi's
private CIA
�
But the most important CIA-Booz Allen cooperation may have been in
Egypt.
�
In March 1953 Miles
Copeland, having resigned from the CIA to join Booz-Allen,
"returned to Cairo
under what was, for all practical purposes, a joint CIA-BA&H
mission."65
In addition to offering
management advice to the Egyptian government in general, and to a
private textile mill, Miles also gave Nasser advice on establishing
his intelligence service (the Mukhabarat), and "soon became his
closest Western advisor" (as well as his top channel to the USG,
more important than either the local US ambassador or CIA chief) 66
Copeland's role with Nasser did not make him a shaper of U.S.
policy; his pro-Nasser views were largely subordinated to the
pro-British anti-Nasserism of the Dulles brothers.
�
But they did establish a
bond between Copeland and the Eisenhower White House.
�
By 1967, when Nixon
was preparing to run for president, Copeland had taken a leave of
absence from Booz Allen to become a prestigious and well-paid
consultant for oil companies.
�
�
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The CIA, Miles
Copeland, and Adnan Khashoggi
In 1966 Copeland, while technically on leave from Booz Allen, made
close contact with Adnan Khashoggi, a young Arab who was in
the course of becoming both a "principal foreign agent" of the U.S.
and also extremely wealthy on the commissions he earned from
Lockheed and other military firms on arms sales to Saudi Arabia.67
"To give some sense
of the size of the business, the company acknowledged in the
mid-1970s that it had provided $106 million in commissions to
Khashoggi between 1970 and 1975, more than ten times the level
of payments made to the next most important connection, Yoshi
[sic] Kodama of Japan."68
�
Adnan Khashoggi,
shadowy backer of politicians
(Time, Jan. 19, 1987)
�
By Copeland's own account in 1989, this encounter with Khashoggi,
"put the two of us on
a 'Miles-and-Adnan' basis that has lasted for more than twenty
years of business, parties, and a very special kind of political
action."69
Copeland adds that,
Adnan and I,
separately had been called on by our respective friends in
Langley [i.e., CIA] to� have an official [sic], off-the-record
exchange of ideas on the emerging crisis in the Middle East, and
come up with suggestions that the tame bureaucrats would like to
have made but couldn't.70
Copeland almost
immediately flew to Cairo and immersed himself in a series of
high-level but ultimately unsuccessful efforts to forestall what
soon became the 1967 Six Day Egyptian-Israeli
Six Day War.
�
By his account, his
mission, though unsuccessful, gave a "tremendous boost" to his
reputation, enabling him,
"to accelerate the
attempt I had already started to establish a 'private CIA' by
use of confidential arrangements with politically astute members
of the client companies."71
Copeland's self-promoting
claims are controversial, and a number of establishment writers have
described his books as "unreliable."72
�
But eyewitness Larry
Kolb corroborates that Copeland was close to Khashoggi, and that
the two of them,
had written a white
paper� proposing that� rich countries, including not only the
United States but also the Arab oil states, should establish a
"Marshall Plan" for all the needy countries of the Middle East,
including Israel.
Rewritten with Kolb's
assistance after consultation with the Reagan White House, the plan
would be backed by a "Mideast Peace Fund" to which,
"Adnan was pledging a
hundred million dollars of his own money."73
The proposal failed,
partly because of the Middle East's resistance to negotiated
solutions, but also partly because by the 1980s Khashoggi was no
longer as rich and influential as he had once been.
�
His function as an agent
of influence in the Middle East and elsewhere had been sharply
limited after the United States, by the Corrupt Federal Practices
Act of 1978, outlawed direct payments by US corporations to foreign
individuals.
�
Henceforward the function
of bestowing money and sexual favors on client politicians passed
primarily from Khashoggi to another CIA connection, the Bank of
Credit and Commerce International (BCCI).74
�
A major shareholder in
BCCI was Saudi intelligence chief Kamal Adham, Khashoggi's
friend and business partner and (according to the Senate BCCI
Report),
"the CIA's former
principal contact in the Arab Middle East."75
What the story of the
failed "Mideast Peace Fund" reveals is,
-
first, that
Khashoggi (like BCCI after him) was of interest to
Washington because of his ability to negotiate with both
Israel and Arab countries
-
second, that
Copeland and what Copeland called his "private CIA,"76 was
in a commanding position as lead adviser to Khashoggi, while
still on unpaid leave from Booz Allen Hamilton
�
�
Khashoggi, the
CIA's Asset Edward K. Moss, and Political Corruption
A powerful connection was formed by combining Copeland's political
contacts with Khashoggi's millions.
�
Copeland may have been
responsible for Khashoggi's inspired choice of the under-recognized
Edward K. Moss, another man with CIA connections, as his p.r.
agent in Washington.77
Back in November 1962, the CIA, as part of its planning to get rid
of Castro, decided to use Moss for the Political Action Group of the
CIA's Covert Action (CA) staff.78
�
This was more than a year
after the FBI had advised the CIA that Moss's mistress Julia Cellini
and her brother Dino Cellini were alleged to be procurers, while,
"the Cellini brothers
have long been associated with the narcotics and white slavery
rackets in Cuba."79
This FBI report suggests
an important shared interest between Moss and Khashoggi: sexual
corruption.
�
Just as his uncle Yussuf
Yassin had been a procurer of women for King Abdul-Aziz, so
Khashoggi himself was said to have,
"used sex to win over
U.S. executives."
The bill for the madam
who supplied girls en masse to his yacht in the Mediterranean ran to
hundreds of thousands of dollars.80
�
Khashoggi made a practice
of supplying those he wished to influence with dollars as well as
sex.
�
Khashoggi's Superyacht Kingdom 5KR,
now owned by Prince Al-Waleed bin Talal
�
The CIA of course was forbidden to use sex and money in this way in
the United States, or to make in the United States the payments to
right-wing politicians that characterized its behavior in the rest
of the world.
�
But no such prohibition
applied to Khashoggi.
�
According to Anthony
Summers,
Khashoggi had courted
Nixon in 1967 by putting a plane at his disposal to tour the
Middle East after the Six-Day War. Soon afterward, using a
proxy, he opened an account at Rebozo's [Bebe Rebozo, Nixon's
close confidante] in Florida.
�
He did so, he
explained to Watergate prosecutors, hoping to "curry favor with
Rebozo," to get an entr�e to the man who might become president,
and to pursue business deals.81
Khashoggi in effect
served as a "cutout," or representative, in a number of operations
forbidden to the CIA and the companies he worked with.
�
Lockheed, for one, was
conspicuously absent from the list of military contractors who
contributed illicitly to Nixon's 1972 election campaign. But there
was no law prohibiting their official representative, Khashoggi,
from cycling $200 million through the bank of Nixon's friend Bebe
Rebozo.82
(Pierre Salinger heard from Khashoggi that in 1972 he had donated $1
million to Nixon, corroborating the often-heard claim that Khashoggi
had brought it in a briefcase to Nixon's western White House in San
Clemente, and then "forgotten" to take it away.) 83
Khashoggi of course did not introduce such corruption to American
politics; he merely joined a milieu where defense companies had used
money and girls for years to win defense contracts in Washington and
Las Vegas.84
�
Prominent in this
practice was Howard Hughes, whom Khashoggi soon joined in
international investments.
�
(After a Senate
investigator on Khashoggi's trail registered at the Hughes-owned
Sands Hotel in Las Vegas, a blonde came unexpectedly to his hotel
room, and said, "I'm here for your pleasure.") 85
But Khashoggi's corruption channels and targets overlapped with
those of others with CIA connections. In 1972 it was alleged that
funds from the Paradise Island casino in the Bahamas were being
secretly carried to Nixon and his friend Bebe Rebozo, by a casino
employee.
�
This was Seymour (Sy)
Alter, who was both "a friend of Nixon and Rebozo since 1962"
and also an associate of Edward Moss's brother-in-law Eddie Cellini,
the casino manager at Paradise Island. 86
�
The funds came from the
Paradise Island Bridge Company, a company partly owned by an officer
of Benguet International, a firm represented in America by Paul
Helliwell.87
�
It is likely that Nixon
himself had a hidden interest in the Bridge Company, which might
explain the revelation through
Operation Tradewinds that a
"Richard M. Nixon" (not otherwise identified) had an account at
Helliwell's Castle Bank.88
Three facts point to a Deep State interest in what might otherwise
seem a matter of personal corruption.
-
The first is that
Paul Helliwell had set up two companies for the CIA - CAT
Inc. (Later Air America) and SEA Supply Inc. in Bangkok -
that became the infrastructure of the CIA's covert
operations with drug-trafficking armies in Southeast Asia.89
�
-
The second is
that Paul Helliwell's banking partner, E.P. Barry, had been
the postwar head of OSS Counterintelligence (X-2) in Vienna,
which oversaw the recovery of SS gold in Operation
Safehaven.90
�
-
The third is that
for over four decades persons from Booz Allen Hamilton have
been among the very small group owning the profitable
Paradise Island Bridge Company. (A recent partner in the
Paradise Island Bridge Company is Booz Allen Senior
Vice-President Robert Riegle.) 91
�
The Safari Club today,
now the Fairmont Mount Kenya Safari Club
�
�
�
Moss,
Khashoggi, the Safari Club, and the International Overworld
The power exerted by Khashoggi and Moss was not limited to
Khashoggi's access to funds and women.
�
By the 1970s, Moss was
chairman of the elite
Safari Club in Kenya, where he
invited Khashoggi in as majority owner.92
�
The exclusive property
became the venue for an alliance between intelligence agencies that
wished to compensate for the CIA's retrenchment in the wake of
President Carter's election and Senator Church's post-Watergate
reforms.93
As former Saudi intelligence chief Prince Turki bin Faisal
once told Georgetown University alumni,
In 1976, after the
Watergate matters took place here, your intelligence community
was literally tied up by Congress. It could not do anything.
�
It could not send
spies, it could not write reports, and it could not pay money.
In order to compensate for that, a group of countries got
together in the hope of fighting Communism and established what
was called the Safari Club.
�
The Safari Club
included,
-
France
-
Egypt
-
Saudi Arabia
-
Morocco
-
Iran. 94
Prince Turki's candid
remarks,
"your intelligence
community was literally tied up by Congress... In order to
compensate for that, a group of countries got together� and
established what was called the Safari Club",
...made it clear that the
Safari Club, operating at the level of the Deep State, was expressly
created to overcome restraints established by political decisions of
the public state in Washington.
Obviously the property owned by Khashoggi and Moss in Kenya should
not be confused with the intelligence operation of the same name.
�
But it would be wrong
also to make a radical separation between the two:
the two men Khashoggi
and Moss would appear to be part of this supranational
intelligence milieu.
Specifically Khashoggi's
activities of corruption by sex and money, after they too were
somewhat curtailed by Senator Church's post-Watergate reforms,
appear to have been taken up by the Bank of Credit and Commerce
International (BCCI), a bank where Khashoggi's friend and business
partner Kamal Adham, the Saudi intelligence chief and Safari Club
member, was a part-owner.95
�
�
BCCI on the cover of Time,
July 6,
1991.
�
�
�
The Deep
State, the Safari Club, and BCCI
The usual account of this super-agency's origin is that it was,
the brainchild of
Count Alexandre de Marenches, the debonair and mustachioed chief
of France's CIA.
�
The SDECE (Service de
Documentation Ext�rieure et de Contre-Espionnage)� Worried by
Soviet and Cuban advances in postcolonial Africa, and by
America's post-Watergate paralysis in the field of undercover
activity, the swashbuckling Marenches had come to Turki's
father, King Faisal, with a proposition�
�
[By 1979] Somali
president Siad Barre had been bribed out of Soviet embrace by
$75 million worth of Egyptian arms (paid for� by Saudi
Arabia)�.96
However the well-informed
Mahmood Mamdani sees it as the product of Washington's search
for new proxies after the debacle of the U.S.- South African debacle
in Angola in the mid-1970s:
Apartheid South
Africa was confirmed to be a political liability. The
recognition only aggravated the search for proxies. Its first
success was a regional alliance called the Safari Club, put
together with the blessing of Henry Kissinger.97
As Kissinger was still
Secretary of State when the Safari Club was founded, this would
suggest that it was an authorized, not a Deep State creation.
�
So would the Club's early
successes that Mamdani cites, especially when,
it helped bring about
the historic rapprochement between two strategic American
Allies, Egypt and Israel, laying the ground for Anwar al-Sadat's
pathbreaking November 1977 visit to Jerusalem.
�
The suggestion for
the meeting was first made in a letter from Israeli Prime
Minister Yitzhak Rabin to President Sadat, carried by the
Moroccan representative in the club.98
But after Carter
was elected, according to Trento, the Safari Club allied itself with
Richard Helms and Theodore Shackley against the
restrained intelligence policies of Jimmy Carter.
�
In Trento's account, the
dismissal by William Colby in 1974 of CIA counterintelligence
chief James Angleton,
combined with
Watergate, is what prompted the Safari Club to start working
with [former DCI Richard] Helms [then U.S. Ambassador to Iran]
and his most trusted operatives outside of Congressional and
even Agency purview.
�
James Angleton said
before his death that,
"Colby destroyed
counterintelligence. But because Colby was seen by Shackley
and Helms as having betrayed the CIA to Congress, they
simply began working with outsiders like Adham and Saudi
Arabia.
�
The traditional
CIA answering to the president was an empty vessel having
little more than technical capability."99
Joseph Trento adds
that,
"The Safari Club
needed a network of banks to finance its intelligence
operations�
�
With the official
blessing of George Bush as the head of the CIA, Adham
transformed� the Bank of Credit and Commerce International
(BCCI), into a worldwide money-laundering machine."100
Trento claims also that
the Safari Club then was able to work with some of the controversial
CIA operators who were then forced out of the CIA by Turner, and
that this was coordinated by perhaps the most controversial of them
all: Theodore Shackley.
Shackley, who still
had ambitions to become DCI, believed that without his many
sources and operatives like [Edwin] Wilson, the Safari
Club-operating with [former DCI Richard] Helms in charge in
Tehran-would be ineffective�
�
Unless Shackley took
direct action to complete the privatization of intelligence
operations soon, the Safari Club would not have a conduit to
[CIA] resources.
�
The solution: create
a totally private intelligence network using CIA assets until
President Carter could be replaced.101
Kevin Phillips has
suggested that Bush on leaving the CIA had dealings with the bank
most closely allied with Safari Club operations:
the Bank of Credit
and Commerce International (BCCI).
In Phillips' words,
After leaving the CIA
in January 1977, Bush became chairman of the executive committee
of First International Bancshares and its British subsidiary,
where, according to journalists Peter Truell and Larry Gurwin in
their 1992 book 'False Profits' [p. 345], Bush 'traveled on the
bank's behalf and sometimes marketed to international banks in
London, including several Middle Eastern institutions.'102
It is clear moreover that
BCCI operations, like Khashoggi's before them, were marked by the
ability to deal behind the scenes with both the Arab countries and
also Israel.103
�
�
�
Khashoggi,
Copeland, BCCI, and the Iran-Contra Scandal
Joseph Trento adds that through the London branch of this bank,
which Bush chaired,
"Adham's petrodollars
and BCCI money flowed for a variety of intelligence
operations"104
It is clear moreover that
BCCI operations, like Khashoggi's before them, were marked by the
ability to deal behind the scenes with both the Arab countries and
also Israel.105
Khashoggi and BCCI together, moreover, with the assistance of
Miles Copeland, initiated what we remember as the Iran-Contra
arms scandal.
�
According to Theodore
Draper, in his exhaustive study of Iran-Contra,
A chance encounter
between Adnan Khashoggi and Manucher Ghorbanifar effectively set
the Iran affair in motion. As Khashoggi told the story to the
French writer Michel Clerc, the meeting took place in Hamburg in
April 1985.
Draper notes furthermore
that the deal soon involved three Israelis,
-
Yaacov Nimrodi
-
Adolph (Al)
Schwimmer
-
David Kimche,
...for whom,
"Khashoggi was no
newcomer."
Together with Israeli
Defense Minister Sharon, the three had,
"met with President
Nimeiri of the Sudan [in May 1982] at a safari resort in Kenya
owned by Khashoggi" i.e., the Safari Club.106
But Khashoggi's
connection to Schwimmer went even further back: the two men had been
introduced in Las Vegas by Schwimmer's partner in gun-running to the
infant state of Israel, Hank Greenspun.107
Draper's account of the Hamburg meeting fails however to note that
Miles Copeland and his assistant Larry Kolb were (according to their
own accounts) also present.
�
Copeland writes that he
and Khashoggi met with the Iranian arms dealer Manucher
Ghorbanifar, after which Copeland wrote up an Iran arms sales
proposal.
�
Copeland claims this had
nothing to do with either Contras or hostages, but was intended as
a,
"second paper to
McFarlane�as an appendix to the 'Marshall Plan' paper.
�
So far as [Khashoggi]
was personally concerned, he was attracted to [Ghorbanifar's]
proposal only to the extent to which it could be tied into plans
for over all Middle Eastern peace."108
Copeland's aide Larry
Kolb agrees that he, Copeland, Khashoggi, and Schwimmer were all
present with Ghorbanifar and others at the 1985 Hamburg meeting.
�
There, according to Kolb,
Khashoggi,
said that in recent
meetings in Washington, he'd been told that if the American
government was going to participate in this venture�it would
have to be structured in such a way that there would be no trail
of arms� leading from the United States to Iran.
�
So, Adnan said� it
had been arranged that the actual goods could come from the
Israeli government� and be transported directly from Israel to
Iran�.
But arms trading and spare parts and hostages took up very
little of the conversation that day.
�
Most of the time was
spent thinking, and talking,� about a strategic opening between
the United States and Iran - as a means of blunting Soviet
attempts to dominate the world's third largest oil producer.109
Later he and Copeland
wrote up the meeting in a paper titled,
"'Adnan Khashoggi's
Views on the Possibilities of a Strategic Initiative Between the
United States and Iran'," that "wasn't about an arms deal."
They gave it to Khashoggi
to present to McFarlane.
We had no idea then
that� months later a wild-ass Marine colonel would force the
whole thing out into the open by stealing Adnan [Khashoggi]'s
fifteen-million-dollar bridge loan which funded the sale and
sending the money to the Nicaraguan Contra rebels.110
The Congressional
investigation of the Iran-Contra Affair agrees with Kolb that,
"Khashoggi suggested
that Ghorbanifar try to develop access to the United States and
its arms through Israel."111
And the Senate
investigation of BCCI also reports:
Both Saudi
businessman Adnan Khashoggi and Iranian arms merchant Manucher
Ghorbanifar were central agents of the United States in selling
arms to Iran in the Iran/Contra affair.
�
According to the
official chronologies of the Iran/Contra committees, Khashoggi
acted as the middleman for five Iranian arms deals for the
United States, financing a number of them through BCCI...
�
According to his own
and other published accounts, he provided some $30 million in
loans altogether... Both Khashoggi and Ghorbanifar banked at
BCCI's offices in Monte Carlo, and for both, BCCI's services
were essential.112
Both Ghorbanifar and
Khashoggi have been presented as mavericks interested in arms sales
for their own individual profit.
�
However the participation
of Copeland suggests that, once again, what Copeland called "friends
in Langley" may have been interested in engaging them in an
operation to which both the Secretaries of State and of Defense were
resolutely opposed.
�
�
�
The Deep State
and the BCCI Cover-Up
It is clear that for years
the American Deep State in
Washington was both involved with and protected BCCI.
�
Acting CIA director
Richard Kerr acknowledged to a Senate Committee,
"that the CIA had
also used BCCI for certain intelligence-gathering
operations."113
Later, a
congressional inquiry showed that for more than ten years
preceding the BCCI collapse in the summer of 1991, the FBI,
the DEA, the CIA, the Customs Service, and the Department of
Justice all failed to act on hundreds of tips about the
illegalities of BCCI's international activities.114
Far less clear is the
attitude taken by Wall Street banks towards the miscreant BCCI.
�
The Senate report on BCCI
charged however that the Bank of England,
"had withheld
information about BCCI's frauds from public knowledge for 15
months before closing the bank."115
Of course the scope and
influence of BCCI reflected changes in the global superstructure of
finance since the oil price hikes of the 1970s.
�
A recent study of the
dangerously unstable concentration of ownership in the world showed
only four recognizable Wall Street institutions among the top
twenty: JPMorgan Chase & Co, the Goldman Sachs Group, Bank of New
York Mellon Corp, and Merrill Lynch.116
�
Of these, Bank of New
York, the bank heavily involved in the 1990s looting of Russia,
interlocked with BCCI through the Swiss banking activities of the
international banker Bruce Rappaport,
"thought to have ties
to US and Israeli intelligence."
(Alfred Hartmann, a board
member of BCCI, was both vice-chairman of Rappaport's Swiss bank,
Bank of New York-Intermaritime, and also head of BCCI's Swiss
subsidiary, the Banque de Commerce et de Placements).117
�
The mysterious E.P.
Barry, the OSS veteran who had overseen the recovery of SS gold
in Operation Safehaven before becoming the banking partner of Paul
Helliwell, was also a major stockholder in Rappaport's Inter
Maritime Bank.118
The collapse of BCCI in 1991 did not see an end to systematic
Saudi-financed political corruption in the U.S. and elsewhere.
�
After a proposed major
arms sale in the 1980s met enhanced opposition in Congress from the
Israeli lobby, Saudi Arabia negotiated a multi-billion pound
long-term contract with the United Kingdom - the so-called al-Yamamah
deal. It developed much later that overpayments for the purchased
weapons were siphoned off into a huge slush fund for political
payoffs, including,
"hundreds of millions
of pounds to the ex-Saudi ambassador to the US, Prince Bandar
bin Sultan."119
According to Robert
Lacey, the payments to Prince Bandar were said to total one
billion pounds over more than a decade, including,
"a suitcase
containing more than $10 million" that went to a Vatican priest
for the CIA's long-time clients, the Christian Democratic
Party.120
The money went through a
Saudi Embassy account in the Riggs Bank, Washington; according to
Trento, the Embassy's use of the Riggs Bank dated back to the
mid-1970s, when, in his words,
"the Saudi royal
family had taken over intelligence financing for the United
States."121
As we saw earlier, the
CIA had,
"laundered over $10
million in captured Axis funds to influence the [Italian]
election [of 1948]."122
These practices, in other
words, survived the legal efforts to end them.
�
�
�
Conclusion - A
Supranational Deep State
The complex milieu of Khashoggi, the BCCI, and the Safari Club can
be characterized as a supranational Deep State, whose
organic links to the CIA may have helped consolidate it.
�
It is clear however that
decisions taken at this level by the Safari Club and BCCI were in no
way guided by the political determinations of those elected to power
in Washington.
�
On the contrary, Prince
Turki's candid remarks revealed that the Safari Club (with the
alleged participation of two former CIA Directors, Bush and Helms)
was expressly created to overcome restraints established by
political decisions in Washington.
A former Turkish president and prime minister once commented that
the Turkish Deep State was the real state, and the public state was
only a "spare state," not the real one.123
�
A better understanding of
the American Deep State is necessary, if we are to prevent it from
assuming permanently the same role.
�
�
Notes
1 Dana Priest and
William Arkin, Top Secret America: The Rise of the New American
Security State (New York: Little Brown, 2011), 52.
2 E.g. Marc Ambinder and D.G. Grady, Deep State: Inside the
Government Secrecy Industry (New York: Wiley, 2013); cf. John
Tirman, "The Quiet Coup: No, Not Egypt. Here," HuffingtonPost,
July 9, 2013: "Now we know: the United States of America is
partially governed by a Deep State, undemocratic, secret,
aligned with intelligence agencies, spying on friend and foe,
lawless in almost every respect."
3 Mike Lofgren, "A Shadow Government Controls America," Reader
Supported News, February 22, 2014.
4 Grant Barrett, "A Wordnado of Words in 2013," New York Times,
December 21, 2013.
5 Peter Dale Scott, Deep politics and the death of JFK
(Berkeley: University of California Press, 1998), 7.
6 "Tom Hayden discussing the crisis in Venezuela," Tikkun,
February 25, 2014.
7 To take a single telling example, six of Sam Walton's heirs
are now reportedly wealthier than the bottom 30% of Americans,
or 94.5 million people (Tim Worstall, "Six Waltons Have More
Wealth Than the Bottom 30% of Americans," Forbes, December 14,
2011). Cf. the devastating picture of a disintegrating America
in George Packer, The Unwinding: An Inner History of the New
America (New York: Farrar, Straus and Giroux, 2013).
8 See Kevin Phillips, The politics of rich and poor: wealth and
the American electorate in the Reagan aftermath (New York:
HarperCollins, 1991). Cf. John T. Stinson, The Reagan Legacy
(Bloomington, IN: iUniverse, 2009), 146; Timothy Noah, The great
divergence: America's growing inequality crisis and what we can
do about it (New York: Bloomsbury, 2012).
9 For the impact of railroads on expanded social awareness, see
Benedict Anderson, Imagined communities: reflections on the
origin and spread of nationalism (London: Verso, 1991).
10 "What is the Deep State?" On Religion [2013].
11 Gareth Jenkins, "Susurluk and the Legacy of Turkey's Dirty
War," Terrorism Monitor, May 1, 2008; quoted in Peter Dale
Scott, "9/11, Deep State Violence and the Hope of Internet
Politics," Global Research, June 11, 2008. For the Susurluk
incident, see also Scott, American War Machine, 19-20, etc.
12 Scott, Deep Politics and the Death of JFK, xi-xii.
13 Lofgren, " A Shadow Government Controls America."
14 Quoted in Peter Dale Scott, The Road to 9/11: Wealth, Empire,
and the Future of America, 1.
15 Forbes magazine founder Bertie Charles Forbes wrote six years
later: "Picture a party of the nation's greatest bankers
stealing out of New York on a private railroad car under cover
of darkness, stealthily riding hundred[s] of miles South,
embarking on a mysterious launch, sneaking onto an island [the
appropriately named Jekyll Island] deserted by all but a few
servants, living there a full week under such rigid secrecy that
the names of not one of them was once mentioned, lest the
servants learn the identity and disclose to the world this
strangest, most secret expedition in the history of American
finance. I am not romancing; I am giving to the world, for the
first time, the real story of how the famous Aldrich currency
report, the foundation of our new currency system, was written
(B.C. Forbes, Leslie's Weekly, October 19, 1916; in T. Cushing
Daniel, Real money versus false money-bank credits; the most
important factor in civilization and least understood by the
people [Washington, D.C., The Monetary educational bureau,
1924], 169; cf. B.C. Forbes, Men who are making America [New
York: Forbes Publishing Co., 1922], 398; cf. G. Edward Griffin,
The Creature from Jekyll Island: A Second Look at the Federal
Reserve [Westlake Village, CA: American Media, 1994]). Paul
Warburg later wrote that "Though eighteen years have since gone
by, I do not feel free to give a description of this most
interesting conference, concerning which Senator Aldrich pledged
all participants to secrecy" (Paul Warburg, The Federal Reserve
System: Its Origin and Growth [New York, Macmillan, 1930], ZZ).
16 Congress was persuaded to provide perfunctory support of the
bailout, under an alleged mysterious threat of martial law. See
Peter Dale Scott, "Martial Law, the Financial Bailout, and War,"
Global Research, January 8, 2009; reprinted in Michel
Chossudovsky and Andrew Gavin Marshall, eds., The Global
Economic Crisis: The Great Depression of the XXI Century
(Montreal, Global Research Publishers. Centre for Research on
Globalization, 2010), 219-40; Llewellyn H. Rockwell, Jr., "Sen.
Inhofe: [Henry] Paulsen [Secretary of the Treasury and former
Chief Executive Officer of Goldman Sachs] Threatened Martial Law
To Pass Bailout," LewRockwell.com, November 20, 2008.
17 Richard Helms with William Hood A look over my shoulder: a
life in the Central Intelligence Agency (New York: Random House,
2003), 82-83. Cf. Scott, American War Machine, 26-28.
18 Laurence H Shoup and William Minter, Imperial brain trust:
the Council on Foreign Relations and United States foreign
policy (New York: Monthly Review Press, 1977).
19 Gordon Thomas, Secret Wars: One Hundred Years of British
Intelligence Inside MI5 and MI6 (New York: Thomas Dunne Books/
St. Martin's Press, 2009), 98. This may have occurred during
Dulles's visit to Europe in the spring of 1947 (James Srodes,
Dulles: Master of Spies [Washington: Henry Regnery, 1999], 392).
20 Richard Aldrich, The Hidden Hand: Britain, America, and Cold
War secret intelligence (Woodstock, NY: Overlook Press, 2001),
343. Dulles also chaired the executive committee of the
companion National Committee for a Free Europe (behind the Iron
Curtain), whose legal affairs were handled by Sullivan and
Cromwell (Wilson D. Miscamble, George F. Kennan and the Making
of American Foreign Policy, 1947-1950 (Princeton, NJ: Princeton
University Press, 1992), 204.
21 Amy B. Zegart, Flawed by Design: The Evolution of the CIA,
JCS, and NSC (Stanford: Stanford UP, 1999), 189; citing
Christopher Andrew, For the President's Eyes Only (New York:
HarperCollins, 1995), 172; see also Church Committee, Final
Report, Book 4, 28-29.
22 David Wise and Thomas B. Ross, The Espionage Establishment
(New York: Random House, 1967), 166; Scott, Road to 9/11, 13.
23 "In January 1946 Dulles outlined in some detail a
reconstruction plan that is one of the earliest notions of what
would, a year later, be known as the Marshall Plan" (Srodes,
Allen Dulles: Master of Spies, 374).
24 Tim Weiner, Legacy of ashes: the history of the CIA (New
York: Doubleday, 2007), 28.
25 Douglas Valentine, "The French Connection Revisited: The CIA,
Irving Brown, and Drug Smuggling as Political Warfare," Covert
Action.
26 Norbert Schlei, "Japan's 'M-Fund' Memorandum, January 7,
1991," JPRI [Japan Policy Research Institute] Working Paper No.
11: July 1995: "Incident to the revision of the Security Treaty
[in 1960], Vice President Nixon agreed to turn over exclusive
control of the M-Fund to Japan. It has been alleged that this
action by Nixon was part of a corrupt political bargain, whereby
it was agreed that if Japan would assist him to become President
of the United States, Nixon would agree to release control of
the Fund to Japan and, if he became President, would return
Okinawa to Japan."
27 "C.I.A. Spent Millions to Support Japanese Right in 50's and
60's," New York Times, October 9, 1994. Cf. Scott, American War
Machine, 93-94, 298-99; citing Chalmers Johnson, "The 1955
System and the American Connection: A Bibliographic
Introduction," JPRI [Japan Policy Research Institute] Working
Paper No. 11: July 1995.
28 Sterling Seagrave and Peggy Seagrave, Gold warriors:
America's secret recovery of Yamashita's gold (London: Verso,
2003). Cf. Richard Hoyt, Old Soldiers Sometimes Lie (New York:
Forge, 2002), 80.
29 Scott, American War Machine, 94, etc.
30 Scott, American War Machine,
31 Norman Mailer, "A Harlot High and Low: Reconnoitering Through
the Secret Government," New York, August 16, 1976 (Hughes);
Michael Schaller, Altered states: the United States and Japan
since the occupation (New York: Oxford University Press, 1997),
294 (Lockheed).
32 Johnson, "The 1955 System and the American Connection."
33 David E. Kaplan and Alec Dubro, Yakuza: Japan's Criminal
Underworld (Berkeley: University of California Press, 2003),
89-90. Cf. Jonathan Marshall, in William O. Walker, III, ed.,
Drug control policy: essays in historical and comparative
perspective (University Park, PA: Pennsylvania State University
Press, 1992), 108:
"Yoshio Kodama's fortune, built of profits from tungsten and
opium, established the party that today rules Japan�. Kodama
contributed to the pervasive corruption of Japanese politics by
steering huge corporate contributions into the coffers of
favored LDP members. This pattern culminated in the Lockheed
scandal, which revealed that multi-million-dollar payoff by
American aerospace firms had swayed key procurement decisions by
Japan's national airline and defense establishment and raised
the possibility that the CIA had used Kodama and corporate funds
to influence Japanese politics. The money-laundering channel
used for Lockheed's bribes was favored both by the CIA and
international drug traffickers."
34 Thomas Fensch, ed. The C.I.A. and the U-2 Program: 1954-1974
(The Woodlands, TX: New Century Books, 2001).
35 William D. Hartung, Prophets of war: Lockheed Martin and the
making of the military-industrial complex (New York: Nation
Books, 2011), 121; David Boulton, The Grease Machine (New York:
Harper & Row, 1978), 97 (friends).
36 Andrew Feinstein, The shadow world: inside the global arms
trade (New York: Farrar, Straus and Giroux, 2011), 265; Anthony
Sampson, The Arms Bazaar (New York: Viking, 1977), 135-36.
37 Bradley R. Simpson, Economists with guns: authoritarian
development and U.S.-Indonesian relations, 1960-1968 (Stanford:
Stanford University Press, 2008), 142;
quoting from CIA, "Political Action Project,", November 19,
1964; FRUS, 1964-1968, 26:181-84.
38 In addition there was "a US deal to deliver 200 light
aircraft to the Indonesian Army in July 1965." The aircraft went
to the army's Diponegoro division, which " as well as supplying
the bulk of the [September 30] "coup" personnel in Java, � also
provided the bulk of the personnel for its suppression"
(Nathaniel Mehr, Constructive bloodbath' in Indonesia: the
United States, Britain and the mass killings of 1965-66
[Nottingham: Spokesman Books, 2009], 36).
39 Peter Dale Scott, "The United States and the Overthrow of
Sukarno, 1965-1967," Pacific Affairs, 58, Summer 1985; citing
United States. Congress. Senate. Committee on Foreign Relations,
Multinational corporations and United States foreign policy,
hearings before the Subcommittee on Multinational Corporations
(Washington: U.S. Govt. Printing Office, 1973-1976), Part 12,
937-65.
40 Scott, "The United States and the Overthrow of Sukarno."
41 Masashi Nishihara, The Japanese and Sukarno's Indonesia:
Tokyo-Jakarta relations, 1951-1966 (Honolulu: University Press
of Hawaii, 1976), 171, 194, 202; Scott, "The United States and
the Overthrow of Sukarno."
42 Fortune, July 1973, 154, cf. Wall Street Journal, April 18,
1967.
43 John Dumbrell and Axel R Sch�fer (eds.), America's 'special
relationships': foreign and domestic aspects of the politics of
alliance (London: Routledge, 2009), 187.
44 John Foster Dulles to Lord McGowan, Chairman of Imperial
Chemical Industries; in Nancy Lisagor and Frank Lipsius, A law
unto itself: the untold story of the law firm of Sullivan &
Cromwell (New York: Morrow, 1988), 127.
45 Charles T. O'Reilly, Forgotten Battles: Italy's War of
Liberation, 1943-1945 (Lanham, MD: Lexington Books, 2001), 288;
Peter Dale Scott, "How Allen Dulles and the SS Preserved Each
Other," Covert Action Information Bulletin, 25 (Winter 1986),
4-14. Dulles's plans to use SS resources in post-war Germany cab
be seen as part of a successful plan to frustrate the
implementation of Roosevelt's so-called Morgenthau Plan to
deindustrialize Germany.
46 Stephen Dorril, MI6, 659-660.
47 Ovid Demaris, Dirty Business: The Corporate-Political
Money-Power Game (New York: Avon, 1974), 213-14.
48 J.P.D. Dunbabin, International relations since 1945 : a
history in two volumes
(London: Longman, 1994), Vol 2, 344. The boycott is denied
without argumentation in Exxon's corporate history (Bennett H.
Wall et al., Growth in a changing environment: a history of
Standard Oil Company (New Jersey), Exxon Corporation, 1950-1975
(New York: McGraw-Hill, 1988), Vol. 4, 476: "Despite oft-printed
statements to the contrary, the oil majors did not conspire to
boycott NIOC oil."
49 Robert Palmer Smith, Darkest truths of black gold: an oil
industry executive breaks the industry's code of silence (New
York: iUniverse, 2007), 256. In July 1952 Mossadeq attempted to
break the embargo by contracting to sell oil to a small private
Italian oil firm. The manoeuver was frustrated by the British
Royal Navy, which in July 1952 intercepted the Italian tanker
Rose Mary and redirected it to Aden. The news dissuaded other
tankers from trying to reach Abadan (Mary Ann Heiss, Empire and
Nationhood: The United States, Great Britain, and Iranian Oil,
1950-1954 [New York: Columbia University Press, 1997], 130;
Stephen Kinzer, All the Shah's men: an American coup and the
roots of Middle East terror [Hoboken, NJ: John Wiley & Sons,
2003], 136).
50 Mostafa Elm, Oil, Power, and Principle: Iran's Oil
Nationalization and Its Aftermath (Syracuse, NY: Syracuse
University Press, 1992), 198-99 (Churchill); Robert Moskin,
American Statecraft: The Story of the U.S. Foreign Service (New
York: Thomas Dunne Books/ St. Martin's Press, 2013), 627-28
(Harriman).
51 Demaris, Dirty Business, 214-25: "The incoming Eisenhower
Administration� quickly dropped the criminal case. The civil
suit that was instituted alleged that the five American oil
companies violated the Sherman Antitrust and the Wilson Tariff
Acts by conspiring to divide and control foreign production and
distribution�. An inadequate staff was assigned to the case and
the action finally petered out a decade later with a couple of
meaningless consent decrees."
52 Robert Sherrill, The oil follies of 1970-1980: how the
petroleum industry stole the show (and much more besides)
(Garden City, NY: Anchor Press/Doubleday, 1983), 221).
53 William R. Freudenburg and Robert Gramling, Oil in troubled
waters: perceptions, politics, and the battle over offshore
drilling (Albany : State University of New York Press, 1994);
17; citing Shukri Mohammed Ghanem, OPEC, the Rise and Fall of an
Exclusive Club (London : KPI, 1986); Mira Wilkins, "The Oil
Companies in Perspective," in Raymond Vernon (ed.), The Oil
Crisis (New York: Norton, 1976).
54 William Roger Louis, "Britain and the Overthrow of Mossadeq,"
in Mark J. Gasiorowski and Malcolm Byrne (eds.), Mohammad
Mosaddeq and the 1953 coup in Iran (Syracuse: Syracuse
University Press, 2004), 168. Cf. William R. Clark, Petrodollar
warfare: oil, Iraq and the future of the dollar (Gabriola
Island, B.C.: New Society Publishers, 2005), 125: "[T]he Dulles
brothers had already conceived a plot when Eisenhower became
president in January 1953."
55 Scot Macdonald, Rolling the iron dice : historical analogies
and decisions to use military force in regional contingencies
(Westport, CT: Greenwood Press, 2000), 98. Cf. Richard H.
Immerman, John Foster Dulles: Piety, Pragmatism, and Power in
U.S. Foreign Policy (Wilmington, DE: Scholarly Resources, 1999),
67. Allen Dulles played a personal role in TP/AJAX, by flying to
Italy and persuading the frightened Shah to return to Tehran.
56 In the past, wishing to dissociate the term "Deep State" from
organizational connotations, I have written of the American
"Deep State" as "a milieu both inside and outside government
with the power to steer the history of the public state and
sometimes redirect it" ("William Pawley, the Kennedy
Assassination, and Watergate," Global Research, November 29,
2012. But because there are extra-governmental structural
components to the Deep State, it might be better to think of it
as not just a milieu, but more analogous to an oligopolistic
market.
57 See Chalmers A Johnson, The Sorrows of Empire: Militarism,
Secrecy, and the End of the Republic (New York: Metropolitan
Books, 2004), 218-19; Timothy Mitchell, Carbon Democracy:
Political Power in the Age of Oil (New York: Verso Books, 2011),
212.
58 Tim Shorrock, Spies for Hire (New York: Simon & Schuster,
2008), 6.
59 Glenn Greenwald, "Mike McConnell, the WashPost & the dangers
of sleazy corporatism," Salon, March 29, 2010.
60 George H. W. Bush was an adviser to Carlyle, which in its
early days "backed a management-led buyout of Caterair and
appointed George W Bush to the board" (Jamie Doward, "Bush Sr's
Carlyle Group Gets Fat On War And Conflict," The Observer, March
25, 2003.)
61 Lofgren, " A Shadow Government Controls America."
62 Booz Allen Hamilton's headquarters is now in McLean,
Virginia, close to the HQ of the CIA.
63 Art Kleiner, Booz Allen Hamilton: Helping Clients Envision
the Future, (Old Saybrook, CT: Greenwich Publishing, 2004), 43.
64 John Prados, Safe for Democracy: The Secret Wars of the CIA
(Chicago: Ivan R. Dee, 2006.), 139. Cf. Christine N. Halili,
Philippine History (Manila: Rex Book Store, 2004), 258
(Philippines land distribution).
65 Miles Copeland, The Game Player: the confessions of the CIA's
original political operative (London: Aurum Press, 1989), 158.
66 Ephraim Kahana and Muhammad Suwaed, Historical dictionary of
Middle Eastern intelligence (Lanham, MD: Scarecrow Press, 2009),
65 {"advisor"); Jack O'Connell, King's Counsel: A Memoir of War,
Espionage, and Diplomacy in the Middle East, (New York : W.W.
Norton & Co., 2011), 20 (channel).
67 The BCCI Affair: BCCI, the CIA and Foreign Intelligence,
Report to the U.S. Senate Committee on Foreign Relations by John
Kerry and Hank Brown, December 1992; 102nd Congress, 2nd
Session, Senate Print 102-140 ("agent").
68 William D. Hartung, Prophets of war: Lockheed Martin and the
making of the military-industrial complex (New York: Nation
Books, 2011), 126.
69 Copeland, The Game Player, 231.
70 Copeland, The Game Player, 233.
71 Copeland, The Game Player, 239.
72 E.g. Evan Thomas, The Very Best Men: Four Who Dared: The
Early Years of the CIA (New York: Simon & Schuster, 1995), 380.
73 Larry J. Kolb, Overworld: The Life and Times of a Reluctant
Spy [New York: Riverhead/Penguin, 2004], 237-38. Cf. Copeland,
The Game Player, 230, 262-63; Ronald Kessler, The Richest Man in
the World: The Story of Adnan Khashoggi (New York: Warner
Books), 300-01: "[O]n May 17, 1983, [Khashoggi] submitted to
President Reagan a confidential 'yellow paper' [which] proposed
an economic aid program similar to the 1949 Marshall Plan
developed by the U.S. for Europe. Called a Peace Fund, it would
provide up to $300 billion in regional economic aid from the
U.S., Saudi Arabia and Kuwait to Israel and any Arab country
that signed a peace treaty with it."
74 Peter Dale Scott, "Deep Events and the CIA's Global Drug
Connection," 911truth.org, October 12, 2008; American War
Machine, 160-65.
75 "The BCCI Affair." Khashoggi's status had declined, but by no
means vanished. As late as 2003, Khashoggi was negotiating with
Richard Perle, a member of the Cheney-Rumsfeld clique who at the
time was still Chairman of the U.S. Defense Policy Board, to
invest considerable Saudi money in Perle's company Trireme
(Seymour Hersh, New Yorker, 3/17/03).
76 Copeland, Game Player, 239; cf. 2128.
77 Kessler, The Richest Man in the World, 84, 188, etc.; Scott,
American War Machine, 158-62.
78 "Moss, Edward K. #172 646," CIA Memo of 19 April 1967, NARA
#104-10122-10006; CIA Inspector General's Report on CIA-Mafia
Plots to Assassinate Fidel Castro, NARA # 104-10213-10101, p.
38. Cf. memo of 7 November 1962 in CIA's Edward K. Moss folder,
p. 26, NARA #1994.05.03.10:54:53:780005.
79 "Manuel Antonio Varona," FBI Memorandum of January 16, 1961
to A. H. Belmont, p. 2, 105-76826-20; NARA #124-90055-10139. Cf.
"Moss, Edward K. #172 646," CIA Memo of 14 May 1973, in Meyer
Lansky Security File, p. 9, NARA #1993.08.13.17:42:12:560059;
CIA letter of 16 December 1960 to FBI, FBI file 105-76826-18;
NARA #124-90055-10133. The CIA itself had notified the FBI on
December 16, 1960, that Julia "Cellino" had advised that her
brothers "have long been associated in the narcotics and white
slavery rackets in Cuba (CIA letter of 16 December 1960 to
Director, FBI, FBI File 105-76826-18; NARA #124-90055-10133;
apparently no copy of this letter has been released from CIA
files).
80 Kessler, Richest Man in the World, 29 (Yassin), 275�78 (Khashoggi).
A friend of Khashoggi's, Larry Kolb, reports that Khashoggi
himself essentially corroborated the story that Khashoggi and
John Kennedy had a friendship in the 1950s that "evolved
primarily out of whoring together" (Larry J. Kolb, Overworld:
The Life and Times of a Reluctant Spy [New York:
Riverhead/Penguin, 2004], 236). The woman who destroyed the
presidential aspirations of Senator Gary Hart in 1987 was one of
Khashoggi's many girls.
81 Anthony Summers with Robbyn Swan, The Arrogance of Power: The
Secret World of Richard Nixon (New York: Viking, 2000), 283. Cf.
Kessler, The Richest Man in the World, 171: Khashoggi told the
prosecutors "that he churned millions through the tiny [Rebozo]
bank to win favor with the president."
82 Investigative reporter Jim Hougan reports the incredulity of
congressional investigators that Lockheed was the only large
corporation not to have made a contribution to Nixon's 1972
election campaign (Hougan, Spooks, 457�58.
83 Scott, Road to 9/11, 35; citing Summers, Arrogance of Power,
283; Robert Baer, Sleeping with the Devil (New York: Crown,
2003), 43. (Baer reports the year of the briefcase as 1968, not
1972.) Kolb ("unequivocally, and from personal experience")
denies the briefcase story (Overworld, 299).
84 Scott, Deep politics and the death of JFK, 234-39.
85 Kessler, Richest Man in the World, 129, 160-61. When Hughes
flew from Las Vegas to the Paradise Island casino in the Bahamas
(where Edward Moss's brother-in-law Eddie Cellini was casino
manager, he did so on a Khashoggi plane. (Kessler, Richest Man,
149-50).
86 Summers with Swan, The Arrogance of Power, 242, 252; Jim
Hougan, Spooks, 398. Cf. Denny Walsh, New York Times, January
21, 1974; Gerth, in Government by Gunplay, 137-39.
87 Block, Masters of Paradise, 94-96; Summers with Swan, The
Arrogance of Power, 244-45. Benguet Mines have also been
associated with Yamashita's gold (Seagrave, Gold Warriors, 147;
Scott, American War Machine, 322n15).
88 Summers with Swan, The Arrogance of Power, 244-45, 253-54.
89 Scott, American War Machine, 71-72. Cf. Wall Street Journal,
April 18, 1980: "In 1951, Mr. Helliwell helped set up and run
Sea Supply Corp., a concern controlled by the CIA as a front.
For almost 10 years, Sea Supply was used to supply huge amounts
of weapons and equipment to 10,000 Nationalist Chinese [KMT]
troops in Burma as well as to Thailand's police."
90 In the course of Operation Safehaven, the U.S. Third Army
took an SS major "on several trips to Italy and Austria, and, as
a result of these preliminary trips, over $500,000 in gold, as
well as jewels, were recovered" (Anthony Cave Brown, The Secret
War Report of the OSS [New York: Berkeley, 1976], 565-66).
91 Who's who in Finance and Industry, Marquis Who's Who, 1979,
568.
92 Kessler, Richest Man in the World, 238-41; Scott, American
War Machine, 161-62.
93 The operation kept the name "Safari Club" even after moving
from Khashoggi's Club to a permanent headquarters in Cairo.
94 Ibrahim Warde, The price of fear: the truth behind the
financial war on terror (Berkeley: University of California
Press, 2007), 133. Cf. Lacey, Inside the Kingdom, 66, 72, 76.
95 Christopher Byron, "The Senate look at BCCI," New York
Magazine, October 28, 1991, 20�21.
96 Lacey, Inside the Kingdom, 66. Cf. John Cooley, Unholy Wars
(London: Pluto Press, 1999), 24-27.
97 Mahmood Mamdani, Good Muslim, bad Muslim: America, the Cold
War, and the roots of terror (New York: Pantheon Books 2004),
84.
98 Mamdani, Good Muslim, bad Muslim, 85.
99 Joseph J. Trento, Prelude to terror: the rogue CIA and the
legacy of America's private intelligence network (New York:
Carroll & Graf, 2005), 61.
100 Trento, Prelude to terror, 104-05. Kevin Phillips also notes
that "Bush cemented strong relations with the intelligence
services of both Saudi Arabia and the shah of Iran. He worked
closely with Kamal Adham, the head of Saudi intelligence" (Kevin
Phillips, "The Barrelling Bushes," Los Angeles Times, January
11, 2004).
101 Trento, Prelude to terror, 113-14.
102 Phillips, "The Barrelling Bushes," Los Angeles Times,
January 11, 2004.
103 There is no published evidence that Copeland was involved in
the Safari Club covert operations. But it may be significant
that Copeland's activity of advising the Egyptian Army became
after the creation of the Safari Club a franchise of a "private"
U.S. firm, J.J. Cappucci and Associates, owned by Theodore
Shackley (Trento, Prelude to Terror, 150, 247).
104 Trento, Prelude to Terror, 139.
105 There is no published evidence that Copeland was involved in
the Safari Club covert operations. But it may be significant
that Copeland's activity of advising the Egyptian Army became
after the creation of the Safari Club a franchise of a "private"
U.S. firm, J.J. Cappucci and Associates, owned by Theodore
Shackley (Trento, Prelude to Terror, 150, 247).
106 Theodore Draper, A Very Thin Line (New York: Hill and Wang,
1991), 129, 131. Cf. Dan Raviv and Yossi Melman, Every spy a
prince: the complete history of Israel's intelligence community
(Boston: Houghton Mifflin, 1990), 261; Mayn Katz, Song of Spies
(Heliographica Press, 2005) 136-37.
107 Samuel Segev ; translated by Haim Watzman, The Iranian
triangle : the untold story of Israel's role in the Iran-Contra
(New York: The Free Press, 1988), 10. For the collaboration of
Greenspun, Schwimmer and Meyer Lansky in gun-running, see
Leonard Slater, The Pledge (New York, Simon and Schuster, 1970).
Paul Helliwell may have been part of this operation; see Scott,
American War Machine, 71, 164.
108 Copeland, The Game Player, 263.
109 Kolb, Overworld, 246.
110 Kolb, Overworld, 247.
111 Iran-Contra Affair, Report of the congressional committees
investigating the Iran-Contra Affair (U.S. Congress, H. Rept.
No. 100-433, S. Rept. No. 100-216), 164.
112 Kerry-Brown Report, Part 11, "BCCI, the CIA and Foreign
Intelligence."
113 Kerry-Brown Report, Part 11, "BCCI, the CIA and Foreign
Intelligence."
114 Dan Bawley, Corporate Governance and Accountability: What
Role for the Regulator, Director, and Auditor? (Westport, CT:
Quorum, 1999). 37.
115 Bawley, Corporate Governance and Accountability, 37.
116 "Revealed - the capitalist network that runs the world." New
Scientist, October 24, 2011.
117 Scott, American War Conspiracy, 163; quoting from Peter
Truell and Larry Gurwin, False Profits: The Inside Story of
BCCI, the World's Most Corrupt Financial Empire (Boston:
Houghton Mifflin, 1992), 384 ("ties").
118 Alan A. Block and Constance A. Weaver, All is clouded by
desire: global banking, money laundering, and international
organized crime (Westport, CT: Praeger, 2004), 36-37.
119 "Saudi prince 'received arms cash'," BBC, June 7, 2007. It
is unclear whether payments continued after 2001, when the UK
signed the OECD's Anti-Bribery Convention, making such
overpayments illegal.
120 Robert Lacey, Inside the Kingdom: Kings, Clerics,
Modernists, Terrorists, and the Struggle for Saudi Arabia (New
York: Penguin Books, 2009), 108.
121 Trento, Prelude to Terror, 102.
122 Amy B. Zegart, Flawed by Design: The Evolution of the CIA,
JCS, and NSC (Stanford: Stanford UP, 1999), 189; citing
Christopher Andrew, For the President's Eyes Only (New York:
HarperCollins, 1995), 172; see also Church Committee, Final
Report, Book 4, 28-29.
123 Former Turkish President and Prime Minister Suleyman Demirel
commented that "In our country� there is one Deep State and one
other state�. The state that should be real is the spare one,
the one that should be spare is the real one" (Jon Gorvett,
"Turkey's 'Deep State' Surfaces in Former President's Words,
Deeds in Kurdish Town," Washington Report on Middle East
Affairs, January/February 2006); quoted in Scott, American War
Machine, 24.
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