Written Statement of Celerino Castillo, 3rd (Former DEA Special Agent)

JULY 2000

For

THE HOUSE SELECT COMMITTEE ON INTELLIGENCE

(The CIA Inspector General Report of Investigation) VOLUME II : The Contra
Story
Released October 8, 1998

And

REPORT ON THE CIA's ALLEGED INVOLVEMENT IN CRACK COCAINE TRAFFICKING IN THE
LOS ANGELES AREA

HOUSE OF REPRESENTATIVES
ONE HUNDRED SIXTH CONGRESS

SECOND SESSION

FEBRUARY 2000








    Several years ago, as a patriot, I took an oath to protect the
Constitution of the United States and itís citizens.  I fought for it in
Vietnam and as a Special Agent with the Drug Enforcement Administration.  And
now, I find myself ready to fight for it once more.  Sadly enough, it's a
battle against the criminals in my own government.  It has cost me so much to
become a complete human being, that I realize by exposing these powerful
criminals, I have placed my life in danger.  However, I strongly believe that
by placing my life on the line, I will make a difference in preserving my coun
try from these criminals. Some of the evidence that you are about to view
have never been exposed to the public.  These atrocities were committed by my
government, from drug trafficking, to obstruction of Justice, to murder with
relative ease.

    The following statement would have been my testimony before the
governmentís committees investigating the allegations of US government
involvement in drug trafficking.  However, for apparent reasons, I was never
summoned to testify.  My only stipulation was, that if I was to be
interviewed, I would  be allowed to record the interview.  Because of my
prior experience with the government, that would had been my only proof of
what I did or did not say.

    You will view some, but not many, quotations that you have read in the
past.  However, I hope that the viewer will focus on these quotations as part
of my foundation of evidence for the criminal cases.  You will also view some
quotations that haven't been witnessed by many.  This is essentially
important in building my cases against these criminals.

    As a twenty year criminal investigator, specifically drug cases, I have
found overwhelming evidence that would convict, without reasonable doubt,
these criminals in my own government.  Furthermore, you will view evidence
that has continuously been there, but because of agendas or simply because of
people protecting their career, it was never exposed.  I will also prove,
emphatically and without equivocation, that high US Government officials
"Obstructed Justice".  These individuals should be held accountable for their
actions for deceiving the American people, judges and members of Congress.

    My first response would have been to Senator John Kerry's "Senate
Committee Report on Drugs, Law Enforcement and Foreign Policy".  At the time,
as a special agent with the Drug Enforcement Administration (DEA), I should
have had my, "God given right as a citizen and as a government agent to
testify before this committee."  One of the reasons that the committee gave
for not interviewing me, was that the DEA had established, "That no evidence
was found that the Contras were involved in  drug trafficking."  As you begin
to view my evidence, you will sense the  massive cover up by the DEA and
other government agencies because they  1
were terrified of the CIA.  Most of the evidence will fall, with
confirmation, that IIopango Air Base in El Salvador was the "O'Hare Airport"
of drug trafficking.  It still boggles my mind why a criminal investigator,
for these investigative  committees, never bothered to travel to Guatemala or
El Salvador to interview US elements of the US Embassies.  Some of these
agents had gathered the intelligence and evidence that implicated the US
Government in drug trafficking.  The only reason I could gather would be that
the committees came to an understanding with the government about the "drug
issue".

    "In 1995, Deutch, fired two CIA officials from the Office of Operation
for Guatemala."

NOTE: Chances are that they were hired back as "contract labor".


"If this information turns up wrong doing, we will bring these people to
justice and make them accountable." John Deutch, DCI - 11-15-96


OVERT ACT :  An open, manifest act from which criminality may be
 implied.  An outward act done in pursuance and               manifestation
of an intent or design.  An open act, which           must be manifestly
proved.




Selections from the Senate Committee Report on Drugs, Law Enforcement and
Foreign Policy chaired by Senator John. F. Kerry

1988


    "We permitted narcotics, we were complicit, as a country, in narcotics
trafficking.  At the same time, we are spending countless dollars in this
country to try to get rid of this problem.  As law enforcement officials risk
their lives, how can you ask a DEA agent to go out there and risk his life,
when there is a whole other policy out there that is willing to overlook
narcotics.  It's mind boggling."

                                   Senator, John Kerry, 1988

2
1. INTRODUCTION

SPRING OF 1986,...On the basis of this evidence, it is clear that individuals
who provided support for the Contras were involved in drug trafficking, the
supply network of the Contras was used by drug trafficking organizations, and
elements of the Contras themselves knowingly received financial and material
assistance from drug traffickers.

NOTE:  I will prove that, not only did the CIA turned a "blind eye", but were
       complicit in drugs and arms trafficking.  Not to mention the
   participation in assassinations by CIA assets.  As you view the
 evidence, you will find dates, times, places, and for the first time names
   of CIA officials who participated in the approval of these murders.


    "There is no question in my mind, "one or more agencies" of the US
government had information regarding the involvement either          while it
 was occurring, or immediately thereafter.  Reports were
            reaching the highest councils of our government.  In the White
House and the Justice Department.  There is no question about that,     I can
document that."
                John Kerry

II. THE EXECUTIVE BRANCH RESPONSE TO CONTRA-DRUG CHARGES

    In the wake of press accounts concerning links between the Contras and
drug traffickers beginning DECEMBER, 1985, with a story by the Associated
Press, both houses of Congress began to raise questions about the
drug-related allegations associated with the Contras.  This caused a review
in the spring of 1986 of the allegations by the State Department, in
conjunction with the Justice Department and relevant US intelligence agencies.

    Following the review, the State Department told the Congress in April,
1986 that it had at that time "evidence of a limited number of incidents in
which known drug traffickers tried to establish connections with Nicaraguan
resistance groups."

NOTE:  John (Jack) McCavett was the CIA Chief of Station in Guatemala
and El Salvador during this time period (1980s).



3

Spring of 1986, ...At the time, the FBI had "significant information"
regarding the involvement of narcotics traffickers in Contra operations and
Neutrality Act violations.

NOTE:  Costa Rica and El Salvador airbase "Ilopango" were the main targets
 of these investigations.

Footnote: See extensive FBI investigative materials released in discovery in
                US v Corbo and US v Calero, SD Florida, 1988, documenting
             information the FBI had collected regarding these matters from
            1984 - 1986.  See Iran/Contra Deposition of FBI Agent Kevin
Currier,            Appendix B, Vol. 8 pp. 205-206.

            FBI 302's of SA Kisyznski, released in US v Corbo, SD Florida
1988.

    ...the FBI had already assembled substantial information confirming the
Neutrality Act violations, including admissions by some of the persons
involved indicating that crimes had taken place.

    In fact, as the FBI had previously learned from informants, that
Cuban-American supporters of the Contras had shipped weapons from south
Florida to Ilopango....Corbo, one of the principals in the shipment,
explicitly told the FBI that he had participated in shipping weapons to the
Contras in violation of US Neutrality laws.

NOTE:  Did Jack McCavett know this? He states in his response to the House
      Permanent Select Committee on Intelligence, that "The Contra effort at
  Ilopango was closely supervised".

 1987
    In August 1987, the CIA's Central American Task Force Chief     became
the first US official to revise that assessment to suggest  instead that the
links between Contras ...to narcotics trafficking was   in fact far broader
than that acknowledged by the State Department  in 1986.

Footnotes:  Iran-Contra testimony of Central American Task Force Chief
              August 5, 1987, 100-11, pp. 182-183.

        "Drugs moved in and out--"Fiers on Ilopango", interview with
Iran Contra investigators, 1991"

(1) OVERT ACT ON DRUG TRAFFICKING
4

1987, DEA Assistant Administrator David Westrate said of the Nicaraguan war:
    "It is true that people on both sides of the equation (in the
Nicaraguan war) were drug traffickers, and a couple of them were    pretty
significant".

Footnote: Subcommittee testimony of David Westrate, Part 4, July 12, 1988,
            p. 144.
                   THE CONTRA STORY VOL. II (THE AMERICAN CITIZEN).

NOTE:  DEA at that time, had assembled substantial information of drug
      trafficking at Ilopango Air Base during Jack McCavett's watch.
  However, when DEA asked where (SA Cele Castillo or SA Sandy
Gonzlaes) agent's reports were, they testified that there were no reports
 to implicate the Contras in drug trafficking.

     Example: Walter Grasheim, US citizen, was running a covert operation
at Ilopango since 1984.  In May 3,1986 he was forced to land his aircraft
in Florida. He had with him two suitcases which contained suspected
cocaine.  He alleged that he was transporting top secret documents in the
suitcases for the CIA.  After the incident, he went back to his operation at
Ilopango.

    Jack McCavett was aware of the incident and permitted him to
continue his support for the Contras.  Jack could have warned
    everyone at the embassy about the Grasheim allegation.

    (1) Overt Act "Obstruction of Justice" by both the DEA & CIA


V.  THE PILOTS

...Gary Wayne Betzner, drug pilot who worked for convicted smuggler George
Morales, testified that twice in 1984 that he flew weapons for the Contras
from the US to northern Costa Rica and returned to the US with loads of
cocaine.

    ...Betzner testified that his first delivery of arms to the Contras was
in 1983, when he flew a DC-3 carrying grenades and mines to Ilopango in El
Salvador.  His co-pilot on the trip was Ricahrd Healey, who had flown drugs
for Morales.

Footnote: Subcommittee testimony of Gary Betzner, Part 3, April 7, 1988, pp.
            262-265.
            Address book seized by Customs, Port Charlotte, Florida, N2551,
            March 16, 1987. 5
    DC-4 seized by the DEA on March 16, 1987.  DC-4 was registered to drug
traffickers.  ...US Law enforcement personnel also found an address book
aboard the plane, containing among other references, the telephone numbers of
some Contra officials and the Virginia telephone number of Robert Owen,
Oliver North's courier.

NOTE:  US Col. Oliver North (DEA file # GFGD-91-9139) was working out of
   Ilopango during that time period. It is suspected that this DC-4 flew out
   of Ilopango.  Jack McCavett was still in El Salvador. Who was the
 plane registered to.?  Col. North was documented in DEA files         going
back to the 1980s.  Two years before running for US Senate,
               he was documented, "smuggling weapons to the Philippines with
       known drug traffickers."



(2) OVERT ACT ON DRUG TRAFFICKING


    ...In October 1984, Colombian drug trafficker, George Morales,
transported a C-47 from Haiti to Ilopango Air Force Base in El Salvador.
Morales donated the aircraft to the Contras at Ilopango.


(3) OVERT ACT ON DRUG TRAFFICKING

NOTE:  Ilopango had been utilized by drug traffickers since 1984.  Jack
       McCavett was in Central America or on his way at that time.  He should
       have been briefed prior to his arrival.  Where are his reports?

Footnote: Ibid., p. 15.


    ...Adolfo "Popo" Chamorro gave the Subcommittee a list of flights made by
that C-47 to ferry arms from Ilopango to Costa Rica and La Penca.  Between
October 18, 1984 and February 12, 1986, some 156,000 pounds of material were
moved from Ilopango to air fields in Costa Rica.

NOTE:  A clear violation of the Neutrality.


Footnote:  Chamorro, ibid., pp. 11-12.
6
    ...In addition, Cesar told the Subcommittee that he told a CIA officer
about Morales and his offer to help the Contras.

Senator KERRY:  Did you have occasion to say to someone in the CIA that you
were getting money from him and you were concerned he was a drug dealer?  Did
you pass that information on to somebody?

Mr. Cesar:  "Yes, I passed the information on about the --not the
relations--well, it was the relations and the airplanes; yes.  And the CIA
people at the American military attachÈ's office that were (sic) based at
Ilopango also, and any person or any plane landed there, they had to go..."

...Morales continued to work with the Contras until January 1986.  He was
then indicted for a second time in Florida and was arrested on June 12, 1986.

...In November 1988, the DEA gave Morales a lengthy polygraph examination on
his testimony before the Subcommittee and he was considered truthful.

Footnote:  See correspondence from DEA Mr. Lawn to Senator Kerry, Jan.13,
        1989. Evidences About My Investigation At Ilopango (Extracts from my
Journals)
Note: Every DEA 6 report or cable that I submitted was approved by my Country
Attache, Robert J. Stia

November 08, 1985, Placed a Contra pilot-DEA Informant (Manundo) on a
flight to the US from Guatemala.  This pilot had severely hurt his leg in an
airplane accident in a clandestine airstrip in Costa Rica.  His brother,
Charlie Manundo also became a DEA informant. DEA Russell Reina  was the case
agent.

FOOTNOTE: DEA case file TG-85-0014, Frank Carvajal-Florez

December 05, 1985, Libyans came to Guatemala in an attempt to assassinate
Jack McCavett.  Information was provided by the DEA Airport detail.  A
couple of days later, the Libyans were found murdered.  Information     about
the Libyans was given to CIA Officer, Manny Brand   (Cuban-American).  He
then gave the order to the Guatemalan G-2.   A  couple of days later, the
Libyans were found murdered.  This was  reported in the local newspaper.

NOTE:  The information on the Libyans was given to FBI agent Sullivan
  (Panama AttachÈ). Jack McCavett was stationed in Libya.   7
(1) Overt Act Murder

..."I said, I want you to tell, Abu Abbas, that I'm coming after him, and
when I get to him, I AM GOING TO KILL HIM!" Duane "Dewey" Clarridge
CIA Official 1957-1987

January 13, 1986,  I wrote a DEA 6  report on El Salvador (GFTG-86-9145).

January 14, 1986, Met with V.P. George Bush re: Contras at Ilopango.

    NOTE:  Was forewarned of the Contras-Drug connection.

January 16, 1986: Report on aircraft Colombian aircraft -- HK-1217W--Contra
pilots Carlos Silva and Tulio Pedras.

January 28, 1986: Contra supporter Sofie Amuary, gave the names of Raul
Samana and Adela Herrera (Brigada 2506). Salomon Nassad (Armenia)

NOTE: DEA file TG-86-0003

Feb. 05, 1986, I seized $800,000 in cash, 35 kilos of cocaine, and an
airplane          at Ilopango airport in El Salvador. Colombian M-19
terrorist.

Note: The above case was initiated by Jack McCavett's asset.  The   operation
was conducted by the  CIA "goon squad".  The squad  members were made up of
several former Venezuelans Police Officers  working as advisors for McCavett.
 Leader of this group was Victor    Rivera who was involved in several
murders for the CIA in El Salvador  and Guatemala.  This is a FACT that is
well documented in DEA files.

Footnote: DEA-6 Case file TG-86-0001, Giatan-Giatan, Leonel

Example: A Salvadoran Military Major was kidnapped in Guatemala by
    Rivera and his crew. The Major was then tortured and assassinated by
Rivera.  This was done with the approval of Jack McCavett and CIA   agent
Manny Brand. I assisted the squad in the capture of the Major in    Guatemala
City under the pretext that the Major was a fugitive.  Who was  the plane
registered to at Ilopango?

(2) Overt Act on Murder

8
April 17, 1986, wrote DEA 6's reports on Costa Rican Contra Pilots at
    Ilopango.

Footnote:  El Salvador case file GFTG-86-9999, Air Intelligence

March 24, 1986, I wrote a DEA 6 report (GFTG-86-4003) on the Contra
      operation in El Salvador. It was on Frigorificos de
Puntarenas, S.A.  US registration on aircraft N-68435 (Cessna            402)
white/brown at Ilopango.

NOTE:  DEA files GFTF-86-9999 (Air Intelligence) and GFTF-86-4003, IE4-C0,
       Frigorificos de Puntarenas, SA.  Who was the plane registered to?

March 25, 1986, HK-2281P (Tail Number)  Juan Mata-Ballesteros

NOTE:  Who is the plane registered to?

    Early part of 1986, I received a cable from DEA SA Sandy Gonzales in
Costa Rica.  He was requesting for me to investigate Hangers 4 and 5 at
Ilopango.  He advised that they had received reliable information that the
Contras were flying cocaine into the hangers.  Both hangers were owned and
operated by the CIA and the National Security Council.  Operators of  hanger
4 were US Lt. Col. Oliver North and former CIA agent Felix Rodriguez.

(See attached letter by Bryan Blaney (OIC) dated March 28, 1991)

FOOTNOTE:  Southern Front Contras 447---In April 1986, a CIA cable to
Headquarters reported information from a March 18, 1986 DEA report  regarding
Carlos Amador.  According to the cable, the DEA report noted    that Amador
had recently flown a Cessna 402 from Costa Rica to San  Salvador where he had
access to Hanger 4 (Felix Rodriguez) at Ilopango    air base.  The cable also
indicated that a "DEA source stated that    Amador was probably picking up
cocaine in San Salvador to fly to   Grand Cayman and then to Florida." The
cable also reported that DEA    request the San Salvador police investigate
Amador and anyone   associated with Hangar 4.  It linked Amador with Hangar
14 at Tobias    Bolanos International Airport in San Jose.  The hangar was
owned by    Segio and Jorge Zarcovic.  These two individuals reportedly under
DEA     investigation in connection with a shipment of cocaine that was
seized in   Miami.

NOTE:    See DEA 6s from Costa Rica and El Salvador. 9
(4) Overt Act on drug trafficking

April 1986, The Consul General of the US Embassy in El Salvador (Robert J.
      Chavez) forewarned me that CIA Officer George Witters was
   requesting a US visa for a documented Nicaraguan drug trafficker
       and Contra pilot by the name of Carlos Alberto Amador.
(mentioned in 6 DEA files)

NOTE:  McCavett was questioned by me as to why the CIA was issuing a
               US visa to a drug trafficker.   Answer:  "We just need to get
the
               guy to the US."

(5) OVERT ACT ON DRUG TRAFFICKING

April 17, 1986,  I wrote a Contra  report DEA 6 (GFTG-86-9999 Air
  Intelligence) on the Contra operation on Arturo Renick and           Johnny
Ramirez (both Costa Ricans) at Ilopango air field.
           Tail numbers of aircraft: TI-AQU and BE-60

NOTE:  Who do the planes belong to?

June 06, 1986, I send a DEA cable to DEA HQS re: Contra pilots, Carlos
 Alberto Amador and Carlos Armando Llamos (Honorary            Ambassador to
Panama).  Llamos flew from Ilopango to Panama          on an air plane tail
number N-308P.  Llamos delivered 4 1/2         million dollars to Panama for
the Contras.  Leon Portilla -          TI-ANO; Navajo 31 and YS-265-an
American pilot: Francisco          Vidal (sic).  Roberto Gutierrez (N-82161;
Mexican (X-AB)

(1) OVERT ACT on Money Laundering

NOTE:  Who do these planes belong to?

June 11, 1986, Oscar Alvarado-Lara (Guatemalan Contra Pilot) DEA NADDIS
number 1927543, transported 27 illegal Cubans to Ilopango,      where they
were then smuggled into Guatemala.  Lara is             documented in several
DEA files and is a personal pilot for the CIA       in Guatemala and El
Salvador. His aircraft is identified as TG-REN.

"Again this proves that the CIA participated in activities with documented
drug traffickers."

    NOTE:  Who does this plane belong to?
10
(6) OVERT ACT ON DRUG TRAFFICKING

June 18, 1986,  Francisco Rodrigo "Chico" Guirola-Beeche, Contra Pilot and
    documented cocaine and weapons smuggler, departed               Ilopango
with a large shipment of cocaine and money to the           Bahamas.

 (7) OVERT ACT ON DRUG TRAFFICKING

June 21, 1986, On Chico's return flight he arrived with passengers Alejandro
        De Urbizu and Patricia Bernal.  In 1988, De Urbizu was
arrested in the US in a cocaine conspiracy case.

Note:  In 1985, Guirola was arrested with 5 1/2 million dollars cash by US
        Cutoms.  It was suspected that the money came from drug traffickers
in Los Angeles for the Contras.  He was released because of his     support
for the CIA.

"Once more, Guirola went back to working at Ilopago as a document drug
trafficker with the approval of the CIA."

(2) OVERT ACT ON MONEY LAUNDERING

Aug. 15, 1986, I met with Jack McCavett and CIA Official, Don Richardson in
      El Salvador re: drug trafficker Fernando Canelas Sanez.

Aug. 18, 1986, I received $45,000.00 in cash from CIA Chief of Station, Jack
      McCavett.  This was witnessed by DEA informant Ramiro
                          Guerra  and US Lt. Col. Albert Adame. This money
was
                           turned over to them with a receipt.

    NOTE:  This information is in my Journals and I have the original
   receipt of the $45,000.00.

Aug. 28, 1986, I had a meeting with El Salvador US Ambassador, Edwin Corr
   re: Wally Grasheim (mentioned in several DEA and FBI files),
Pete's Place and Carlos Amador re: CIA US visa for Amador
(documented drug trafficker ).  Visa requested by CIA agent            George
Witter.

Sept 28, 1987, Oscar Alvarado transported CIA Official Randy Capister from
    Puerto Barrios, Guatemala to Guatemala City after a joint DEA,  11
        CIA and Guatemala Military (G-2) operations.  In this operation
 several individuals were murdered by G-2 and witnessed by the       DEA
(Castillo) and CIA Officer Capister.

NOTE: Reported in DEA file TG-86-0005. Guatemalan Congressman: Carlos
Ramiro Garcia de Paz.  Who as of this date, has a US visa.

(3) Overt Act On Murder

Sept. 01, 1986, Walter Grashiemís residence in El Salvador was raided by a
                             DEA task force.  US military munitions were
found.  This
                             individual is mentioned in The Contra Story Vol.
II.  He is
                            documented in several DEA, CIA, US Customs and
FBI files.

Footnote:  January 20, 1987, Joel Brinkley, special to the New York Times,
                 "Contra Arms Crew said to Smuggle Drugs".

Note:  In late 1984, Donald P. Gregg introduced Col. Oliver North to Felix
Rodriguez, (a retired CIA agent) who had already been working in    Central
America for over a year under George Bush's direction.  Gregg   personally
introduced Rodriguez to Bush on Jan. 22, 1985.  Two days    after his January
1985 meeting, Rodriguez went to El Salvador and made    arrangements to set
up his base of operations at Ilopango air base.  On     Nov. 01, 1984, the
FBI arrested Rodriguez's partner, Gerard latchinian     and convicted him of
smuggling $10.3 million in cocaine into the US.

October 21, 1986, Sent a telex/cable to Washington DC on the Contras at
           Ilopango.

April 01, 1987, Bob Stia, Walter Morales and myself flew to Ilopango Airbase
       and met with two CIA Officials who advised us that we could no
 longer utilize Mario Murga because he was now working with            them.

Note:  Mario Murga was our DEA informant who initiated the flight plans for
the Contra pilots at Ilopango. CIA Officer George Witter stole Murga
            from DEA so that there would be no more reporting on CIA assets.

"The CIA has jurisdiction above US federal agencies in foreign countries"

    ..."McCavett maintained good liaison relationships with the DEA..."
     John McCavett interview by HPSCI
12
August 30, 1988, Received intelligence from the number three man (Guido Del
            Prado)at the US embassy in El Salvador re: Carlos Armando
      Llemus-Herrera (Contra pilot ).

NOTE:  See DEA 6 on Carlos Armando Llemus-Herrera

December 03, 1988, Seized 356 kilos of cocaine in Guatemala DEA report
  TG-89-0002, Hector Sanchez.

NOTE :  This case was initiated on Gregorio Valdez, owner and operator of
        Piper Co. in Guatemala.  Personal pilot of Jack McCavett, and CIA
        Officer Randy Capister.  Mr. Valdez and Piper Co. are well
  documented in DEA files in drug trafficking.  For several years, this
        company was contracted by the CIA and the DEA for support.
    Thousands of dollars were paid to this company even after they had
  been documented in DEA files. Several Contra pilots flew out of Piper.

"Once more it proves that the CIA & DEA were sleeping with the enemy"

(8) OVERT ACT ON DRUG TRAFFICKING


Documented Drug-Traffickers (Contra Pilots) Flying Out of Ilopango


Col. Enriques Bermudez, the former Nicaraguan military attachÈ in
Washington, D.C., who had already been placed on the CIA            payroll
to organize an anti-Sandinista force.  Colonel Bermudez         would serve
as the "Commander in Chief: of the FDN forces at        Ilopango. He is well
documented in DEA, FBI and CIA files as
    a suspected drug trafficker.  This goes back to 1981.  This was
never reported to Congress by the CIA.

Marcos Aguado, Chief pilot for the Meneses drug organization who    operated
out of the FDN clandestine military base at Ilopango.  Flew     El Salvadoran
Air Force planes to Colombia to pick up cocaine and     delivered them to a
US military base (Carswell Air Force base) in Texas.    He was also a
personal pilot for Eden Pastora.  He worked hand in hand
            with another documented drug trafficker, Duran.  Aguado was sent
to
            Ilopango to destroy the Islander aircraft, circa July 1984.  In
1986, he
            was documented by DEA as a drug trafficker after an interview.
He still
            flew out of Ilopago with the approval of CIA. 13

1987:  A Congressional report identifies Aguado as an associate of  Colombian
drug trafficker George Morales.  Oliver North aide Rob  Owen also identifies
Aguado as a Contra pilot operating out of   Ilopango.

Footnote:  Southern Front Contras-277- and 278--In October 1984, the CIA
             got their first indication that Aguado was involved in drug
trafficking.

             January 1986, CIA cable, Aguado associates were arrested with
                 600 kilos of cocaine in the US.

(9) OVERT ACT ON DRUG TRAFFICKING


    In April 1986, CIA cable: Adolfo Chamorro "plans to denounce
    Aguado as being involved in drug trafficking activities.

Felix Rodriguez , In March 1986, according to a sworn statement of pilot
Michael Tolliver, under Felix Rodriguez's instructions, Tolliver flew       a
DC-6 aircraft to a Contra base in Honduras, picked up 12 tons       of
marijuana, and flew the dope to Homestead Air Force Base in         Florida.
Rodriguez paid Tolliver $75,000.  Tolliver said that on         another
return trip to the US he carried cocaine for Rodriguez.  In         another
circuit of flights, Tolliver and his crew flew between      Miami and El
Salvador's Ilopango airbase.  Tolliver said the         Rodriguez "instructed
me where to go and who to see."  While      making these flights, he "could
go by any route available without       any interference from any agency.  We
didn't need a stamp of      approval from Customs or anybody."  Rodriguez was
placed at       Ilopango airbase by the National Security Council and the
CIA.        Worked under Jack McCavett (U.S. vs George).

        In a June 26, 1987 closed session of the Kerry's Subcommittee's,
Miliam Rodrigurez testified that in a meeting between Felix         Rodriguez
and himself an agreement was made within themselves         to furnish the
Contras with drug money.  Felix accepted the offer      and $10 million in
such assistance was subsequently provided       the Contras through a system
of secret couriers.

Note: Jack McCavett should had known about this while at Ilopango.

(10) OVERT ACT ON DRUG TRAFFICKING
14
    Gregg's notes read: Felix knew him at Bay of Pigs, also close to
       Tom Clines whom Felix used to know---split over Libya."

        Rodriguez: " North involvement with a group of people
         connected to terrorists like Libya's Mu'ammar              Quadhafi."

Luis Posada Carriles, In 1985, Felix Rodriguez helped Posada get to Salvador
    from a Venezuelan prison and brought him straight to Ilopango to
work with him.  Posada had participated in blowing up a Cuban       airline
which took the lives of 78 individuals.  Rodriguez gave him         the name
of Ramon Medina, gave him bogus papers and put      him to work for the
Contra operation at Ilopango.  The job      description for this individual
was to be head of Logistics.  Posada        was a "gofor"  for the Contra
pilots by accommodating             safe-houses and paying them with cash
from banks in Florida and       Panama.

Note:  Lawrence Victor Harrison (DEA informant) testified that he had been
present when two of the partners of Felix Gallardo and Matta    Ballesteros,
Rafael Caro Quintero and Ernesto Fonseca, met with  American pilots working
out of Ilopango air base in El Salvador,    providing arms to the Contras.
The purpose of the meeting was to work  out drug deals.

(11) OVERT ACT ON DRUG TRAFFICKING

Where was Jack McCavett, if, "Ilopango was well supervised?î

FOOTNOTE:  DEA 6 Report out of Los Angeles "Debriefing of Harrison"


Carlos Alberto Amador,  A Nicaraguan pilot mentioned in six DEA files by
1987.  He is alleged to have smuggled narcotics and weapons to      Ilopango
from Costa Rica for the Contras.  He was carrying           credentials
signed by General Bustillo, Chief of the Air Force at       Ilopango.
Individuals known to have flown with him are Carlos         Viques, Jorge
Zarcovick, Nicola Ly Decker, and Maria Elens Ly         Decker.  Zorcovick
was arrest in the US for smuggling large        quantities of cocaine.



15
Footnotes:  SOUTHERN FRONT CONTRAS- 444-- A July 1985 CIA
        cable..."Carlos Amador on June 8 that a 150 kilos shipment of
cocaine that had been seized near Barra Del Colorad, Costa Rica,
...was destined to the United States.

        SFC- 445 and 446--CIA cable Aug. 1985...Carlos Amador was to
ferry two airplanes from Miami to Colombia, via San Salvador and
Belize... and used in a drug smuggling operation...

    NOTE:  CIA Agent George Witter attempted to give him a US visa by
 orders of Jack McCavett, COS at El Salvador.

(12) OVERT ACT ON DRUG TRAFFICKING


Francisco Rodrigo Guirola-Beeche,  DEA NADDIS # 1585334 and 1744448.    This
individual is documented in FBI, CIA and US Custom files.  On   February 6,
1985 Guirola departed Orange County, California in a private    airplane with
3 Cuban Americans.  It made a stop in South Texas where     US Customs seized
5 1/2 million dollars in cash.  It was alleged that it  was drug money but
because of his ties with the Salvadoran death   squads and the CIA he was
released and the airplane given back.

NOTE:  In May 1984 Guirola accompanied Major Roberto D'Aubuisson, head  of
the death squads in El Salvador, to a very sensitive meeting with   former
CIA Deputy Director Vemon Walters in the US.  Walters was   sent to stop the
assassination of the U.S. ambassador to El Salvador,    Thomas Pickering.
Guirola was documented by me at Ilopango from   1986 to 1989 while Jack
McCavitt was in El Salvador.

 (3)OVERT ACT ON MONEY LAUNDERING
(13) OVERT ACT ON DRUG TRAFFICKING

Walter Lee Grasheim (Wally), This individual is a US citizen who was, as
far as I was concerned, a mercenary operating a covert operation out of
Ilopango.  He arrived at Ilopango in 1984.  By his own admission he
claimed to be working for the CIA, US Army and other government     agencies.
 On Sept. 01, 1986, his residence in El Salvador was raided by  a DEA Task
Force.  Found were huge amounts of US military munitions    that he had no
bussiness with, since he was a civilian.  Also found was    approximately a
pound of Marijuana and Marijuana plants growing in the  back yard.  He had
just violated Salvadoran Law for having these   munitions.  The Salvadoran
Constitution prohibits any foreign nationals or  16
    national from having war munitions. The question remains, where did
he get these munitions from and who approved it?  US Custom agent   Richard
Rivera attempted to trace the munitions but was stopped short of    finding
out.  An arrest warrant was issued for his arrest by Lt. Franco of  the
Salvadoran National Police.  In late 1986, Grasheim threatened US
Ambassador Edwin Corr, claiming that, "If he went down, half of the
Mil-group would go down with him."

(14) OVERT ACT ON DRUG TRAFFICKING


    On December 13, 1990, FBI SA Michael S. Foster, interviewed Walter L.
Grasheim on behalf of the Office Of Independent Counsel on Iran-Contra.
Grasheim claims that he arrived in El Salvador in early 1984.  Upon his
arrival, he met with Art McArney who was now employed by Bell Helicopter.
Grasheim claimed to be selling night vision equipment to the Salvadoran
Military.  He was the Litton Corporationís representative in El Salvador.  He
claimed to have several retired special operations officers working for him .
 He further claimed that he was doing very well, not only financially, but in
assisting the Salvadoran Military.

    Grasheim, claims that in 1985, he had had a conversation with US Colonel
Aaron Royer, who worked at Defense Security Assistance Agency (DSAA) at the
Pentagon.  Royer wanted Grasheim to meet Oliver L. North but the meeting
never took place.  Grasheim claims that Royer had a military items shipping
list from North.  Royer didn't specifically say but Grasheim believed this
was military items destined for the CONTRAS.  Royer had requested from
Grasheim to provide him with prices and availability of various military
items.  Grasheim believed this was also related to the CONTRAS.

    Also in 1985, or early 1986, Col. Steele told Grasheim that the Contras
had paid too much for their aircraft, meaning the caribou and the C-123s.

     Grasheim then identifies Mario del Amigo, known as "Mr. Contra" in
Honduras.  During that time period Grasheim and Mr. del Amigo would travel
back and forth to Honduras and El Salvador.  Grasheim introduced del Amigo to
Rafael Bustillo, Jim Steele and others, "Who were involved with the Contras."
 Grasheim claims that del Amigo sold arms to the Contras and overcharged
them.  Del Amigo complained to Grasheim that Secord was selling arms to the
Contras and overcharging them as well.

    Grasheim claims that Del Amigo used to meet with various people and
discuss the supply of the Contras at Grasheim's house before it was  17
raided.  Grasheim believes that maybe one of the reasons why the raid took
place was because Secord's competition used it for meetings.  Grasheim
believed Del Amigo was running the Contra re-supply operation in El Salvador.

    Grasheim was in the US military from 1959 to 1961.  Grasheim has never
had any other affiliation with the military other than this tour of duty and
he has never had any affiliation with the CIA.

NOTE:  Keep the latter paragraph in mind for a later reference.

    Grasheim, then gives up a former Marine by the name of Boykin.  He was
part of the Mil Group in El Salvador.  Boykin retired from the Marines and
went to work for the Contras.  Boykin is on the cover of an old NEWSWEEK
magazine concerning the Contras.  Grasheim is mentioned in a story in the
same magazine.

    He also claims to have known Felix Rodriguez in El Salvador when
Rodriguez flew a C-12 from Panama to Ilopango.  Grasheim also claim to have
known Luis Rodriguez, a close friend of Felix Rodriguez.  Grasheim claims
that he had learned that the US Embassy was paying for Felix Rodriguez's car
and the fuel for the Contra Re-supply aircraft.  He claims that the embassy
would send checks to Mexico where the fuel was provided to the re-supply
operation.

    Grashiem acknowledge that his Salvadoran house was raided by DEA agent
Celerino Castillo and the local police.  Grasheim admitted that he had
automatic weapons in the residence.  He claims that the raid totally
destroyed his business and ruined his reputation.  Grasheim states that about
a month and a half after the raid, he saw a "state Department guy" in New
Orleans.  The guy told him, "We were asked to do that (the raid)."  After the
raid he claims that the US embassy would not help him and that The Litton
Corporation took away Grasheim's orders for equipment.  Grasheim then claims
that he went to the National Police and that he had been advised by the Chief
of Police (Regalado) that the raid was ordered by the US embassy.

    Grasheim claims that in 1986, he was approached by a US Customs officer
who told him he was under investigation for impersonating an FBI agent.  He
also claims that US Customs (Victor in Miami 1990) had seized his personal
effects.

    Grasheim then gives up, Hilda Martinez ,  Secretary to Col. Steel in El
Salvador for "Improper Activity".  He claims that she married a US Army
officer and moved to California. 18
    Another person that Grasheim gives up is Lupita Vega, who was the log
secretary with the Mil Group in El Salvador.  "A person who would know
things".

NOTE:  Ms Vega is alleged to have had Mr. Grashiem's child.  The mother and
  child now reside in El Paso, Texas. (phone number is available.)


    Also in 1986, Grasheim claims that the US military asked him to get night
vision goggles to the Contras.  Grasheim recalls the incident because he had
to make up the sets himself.  A US military helicopter took the goggles to
the Contras in Honduras.  Grasheim also claims that he met with Barbara
Studley and John Singlaub and they wanted him to sell night vision equipment
to the Contras.  They were working with Mike Timpani, a retired US Army
helicopter pilot.

NOTE :  Mike Timpani was the copilot and navigator of the suspicious
transportation of "Lady Ellen" from the US to Ilopango.  It was a  25   year-o
ld UH-1B (rebuilt Helicopter) to be used for medevac on     Contras
operations. See Soldier of Fortune Magazine June of 1987    issue.

    Grasheim claims that he got an idea to prepare a military raid on an
airport in Nicaragua, using Tamarindo as a staging base.  Grasheim told
General Gorman this and then immediately afterward, Rodriguez came to see
Grasheim without warning and asked to talk about the idea.  Rodriguez told
Grasheim that he was talking to the White House and the NSC but he didn't
tell him any specifics.  Rodrigues did tell Grasheim that he talked to Vice
President George Bush.

    Finally, Grasheim admits that he knew Alan Fiers and stated he is another
one who was involved in the situation in El Salvador and was aware of Contra
re-supply activity.

NOTE: In his interview, Grasheim admits to a couple violations of the
Neutrality   Act.


NEUTRALITY LAWS:  ACTS OF CONGRESS WHICH FORBID THE FITTING     OUT AND
EQUIPPING OF ARMED VESSELS, THE ENLISTING OF    TROOPS, OR THE ENGAGING IN
OTHER SPECIFIED ACTIVITIES;     FOR THE AID OF EITHER OF TWO BELLIGERENT
POWERS WITH     WHICH THE UNITED STATES IS AT PEACE. 19

VOLUME II: THE CONTRA STORY
CIA RECORDS:  "A US CITIZEN"


This "US citizen" that they are discussing is Walter L. Grasheim.

1035--..."Also, no information has been found to indicate that the U.S.
citizen's  activities in El Salvador were related to the Contras in any
manner,...

NOTE: (Count 1) Obstruction of Justice by Hitz.  Apparently he did not check
 with Iran-Contra on the Interview of Grasheim on 12-13-90 or did he?

1036---....The April 25, 1986 cable---as mentioned earlier--also made a
reference to the US citizen and the Contras.  This cable provided an update
regarding, the arrest of American citizens suspected of being mercenaries in
Brazil.  According to the cable, the detainees had been visited in prison by
the US citizen and another person, "both of whom are apparent friends of
several of the detained mercenaries.  Regarding the US citizen, the cable
stated that:  ...visiting US consul...who previously served in San Salvador,
told [CIA] in San Salvador as a military advisor to Contras operating on the
Honduran border with El Salvador...


NOTE: What the CIA failed to tell us, was who were the mercenaries?

    On March 14, 1986, eight American mercenaries were arrested by Brazilian
Federal Police off the coast of Rio de Janeiro; their ship, The Nobistor, and
its cargo of weapons, ammunition and other military gear was seized.  Their
mission was the attempted to overthrow of the west African country of Ghana.

    After contacting the American Consulate in Rio, "State Department Guy"
Ken Sackett, told them, "I've got some close friends in immigration."  We
will take care of everything and make sure you're all on the boat to go home.
There were identified as "The RIO 8":  Steve Sosa, Julio Raul Rodriguez, John
Early, Tim Carmody, Fred Verduin, Sheldon Ainsworth, Steve Hedrick and Bob
Foti.  Most of these individuals had seen action in various hotspots around
the world ---Vietnam, Rhodesia, South Africa, EL SALVADOR ( I wonder who gave
them approval ), Lebanon and other places. 20


Twenty-five days in jail and didn't hear a word from Sackett.  Sackett
finally showed up and told them that, "They would be going home, that it was
just a visa problem and won't need lawyers." In July they were sentenced to 4
to 7 years for "Suspicious of contraband and of forming a group to create
that suspicion."

    They were sent to Agua Santa prison where the warden advised them, "The
American Consul had   # * @ %  them."  It was obvious that "some government
wanted them to vanish".

    Based on the way they were treated from the "State Guy" and the obstacles
their families received from US government, most of the mercs theorized the
US government wanted them kept imprisoned and out of the way.  If this turned
out to be a US government's covert operation, too many perplexing questions
might arise if the mercs were on the loose and free to talk.

    The FBI, US Customs and other law enforcement agencies conducted an
investigation into the Ghana coup attempt .  What do you think the final out
come was?  Why did Vol. II, The Contra Story fail to explain the "Rio 8"
mercenaries?  Because it was one covert operation on top of another.  The
same mercenaries who, more then likely, conducted covert operation in El
Salvador.

FOOTNOTE:  The San Jose Mercury News and Soldier of Fortune magazine
1987 issue.


1038---A March 26, 1987, cable to Headquarters reported that the US citizen
and another individual had been arrested by Dominican Republic authorities
upon landing an airplane in that country.  The airplane contained various
types of military-related equipment.

NOTE:  Where is the criminal investigations by our federal agencies in this
   case?

1047---CIA Records: Castillo's contact with CIA officials...although no
information has been found to indicate the process by which the vehicle were
purchased and given over to the Salvadorans, no information has been found to
indicate that the transaction involved Castillo or DEA in any manner... 21


NOTE: Count 2 "Obstruction of Justice" by Hitz.  He seems to get into the
 habit of misleading members of the committee.

    He implies that there are no records to be found, to explain where the
money was spent.  To start out with, he should have checked with the
Salvadoran National police and inquired about the vehicles that had been
purchased.  Lt. Franco could had been one of the individuals to have been
interviewed about the vehicles.  Did he check with DEA reports on the
vehicles that were purchased?  NO!   Did he check with the Mil-group in El
Salvador who purchased the vehicles? NO!  It's obvious, that the CIA sent out
a "Boy Scout" to conduct a criminal investigation.  But then again, maybe
they didn't want someone who would find out the truth.

    As I stated before, I have the original receipt of who the money was
given to for the purchase of the vehicles.


1054---...The CIA officer says he has no knowledge of drug trafficking at
    Ilopango...

NOTE:  Where in the world was this so called CIA Official.  Did he not read
his        own agency's report on drug trafficking during the early 1980's.

1063---...This officer (CIA) emphatically denies that he had any knowledge
  of Contra trafficking activities at Ilopango or elsewhere...

NOTE:  This individual is Randy Capister who should be under criminal
 investigation for the murders of several Colombians and
Mexicans.  DEA file TG-86-0005, Carlos Ramiro Garcia de Paz.
      Also his association with drug traffickers is well established:
      Gregorio Valdez and Oscar "El Negro" Alvarado.

1064---...he has no knowledge of any alleged Contra drug trafficking
activities being conducted from Ilopango or elsewhere...or that the     US
citizen had no apparent links to the Contras...

NOTE:  Let the record speak for it self.  This CIA official should be
  under investigation for making a false statement.  I guess he forgot
the information on Mr. del  Amigo and Oliver North's Notebook and
Grasheimís interview with OIC.



22
    On February 28, 1998, I met with Walter L. Grasheim at his attorney's
office in McAllen, Texas.  Grasheim had advised me that he was in the process
of filing a civil lawsuit against the U.S government.  He was requesting if I
was willing to bestow upon him a deposition regarding my knowledge of him
while he was in El Salvador.  I advised him that I did not have a problem
with telling the truth.

    To make a very long story short, he admitted in the (depo) that he had
manufactured night vision equipment for the Contras.  He also admitted that
he was on contract by the US Army to train the Salvadorans.  Grasheim advised
me that his case would never go to trial because he had a video of CIA
Officials on search and destroy missions with the Salvadoran Military.
Grasheim preceded to show the video and we witnessed several American
individuals in military uniforms on patrol with Salvadoran military.  One of
the Americans was Grasheim.  Another American was seen in a class room
instructing the Salvadoran Military on operations.  You could witness the
American cautioning (who ever was shooting the film) to stop filming.

FOOTNOTE:  For a nice view of a Special Forces trooper, on the ground in El
     Salvador, see the July 1992 issue of Soldier of Fortune magazine,
"Salvador's Unsung Heroes". These US soldiers were asking for        credit
for a combat tour for 6 month work on covert operation in El
Salvador.  As a former Vietnam combative veteran, I spent 5 years        in
and out of Salvador not only fighting the drug traffickers but also
the corruption at the US embassy and the host government. The        only
thing I asked for "was the truth."  Please read this article         because
it's a blue print of what the US government is ready to do
                      in Colombia.  Also for a good laugh read SOF magazine
Oct.
                      1983 issue, EDITORIAL by Richard M. Nixon, Perilous
Parallel:
                      El Salvador and Vietnam.  All you have to do is change
the
                      name from El Salvador to Colombia for Congressional
approval.

    Grasheim further admitted that his son and himself had smuggled night
vision equipment (batteries) to Europe during the Gulf War.  He stated that
it had been approved by the U.S. Army.

    In my opinion, Gresheim was attempting to blackmail the government.  In
the end, I was also named in his lawsuit as a defendant.  In the early part
of 2000, a federal court threw out the lawsuit.

    Witness to the deposition was Grasheim's attorney: Honorable Tom Wilkins
of Wilkins & Slusher 800 Neuhaus Tower, PO Box 3609 McAllen,  Texas  78502,
W. Lee Grasheim, Tony Cordova, Tim Wilkins and myself. 23

     "From the very beginning, what the Central Intelligence Agency
              (CIA) has not been able to understand, is that there are rules
and
              laws that this country wants followed.  If you undermine the
basic
              value of this country, in the name of defending it, what do you
              have left?  For several decades, the CIA has violated the laws
of
              the United States of America and other countries.  Laws that we
at
              home, are abide to respect.  They need to take seriously that
no
              governmental institution will survive without the support of
itís
              citizens, not the congress, not the president, BUT THE
CITIZENS.   Admiral Stansfield Turner
CIA Director 1977-1981

    In conclusion, If I got a little personal on my response, It's because
the CIA has no remorse about lying to the American people.  All I had ever
asked was for a chance to prove my allegations.  At first, I thought I had
that chance.  But the deck was "fixed".  So I chose to put my life through
"controversy" in an attempt to find a solution in a very peaceful manner.  I
now carry the burden of my dream to have had the opportunity to  finish my
career as a drug agent.  But now, as an educator, I promise myself that I
will desperately attempt to bring "Hope" to the America people.  As the only
son of a very patriotic Mexican-America family, I was reared that beneath it
all, Americans are decent people with the sense of integrity and fair play.
When people read my writings on these atrocities, they are not only cheered
by individuals involved in the moment but also from individuals within my own
government.  As an individual who gladly placed his life on the line for his
government, there is no greater conflict in me.  How do I feel about what my
government has done and how does my government feel about me, for telling the
truth?  These are the questions that my children have asked of me.  A fair
and partial opportunity is all I had asked for, nothing that you yourself
would demand, if you were in my shoes.  You see, America is not easy and that
is why we have these serious problems.  I hope and pray to GOD, that we'll
have some conscientious people in solving these problems. These battles
remind us that if Congress will not lead a resistance to covert power, it may
respond to popular pressure.  But before that happens, the press must give
the American people a much better picture of the extent to which
counter-terrorist campaigns have been misused against covert drug alliances
in Central and South America.

    One of the first targets for an effective drug strategy should be
Washington D.C. itself, and specifically its own support for corruption and
drug-trafficking within OUR GOVERNMENT !

Celerino "Cele" Castillo, 3rd
[EMAIL PROTECTED]
24























25

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