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Homeland Insecurity by Douglas Valentine

Part Six

The Counter-Terror Network

The CIA's counter-terror network, as established by William Casey, was a
direct descendant of the counter-intelligence special operations unit, CHAOS,
formed by James Angleton in August 1967, specifically to spy on the New Left
and other radical political groups in the anti-war and civil rights
movements. From its earliest beginnings, Chaos was distinguished from other
CIA operations by its secure communications system, its super inaccessibility
and "compartmentalization," it's inter-connected domestic and international
mandate, and its essentially political nature. All of this was permissible in
so far as Chaos was a "special" counter-intelligence function designed to
ferret out the plans and strategies of foreign intelligence services.

As we know, the CIA underwent a major reorganization in 1974 after William
Colby fired counter-intelligence chief James Angleton, and exposed the CIA's
"family jewels" at a Congressional Hearing conducted by Representative Otis
Pike (D-NY). Chaos became the International Terrorism Group, and the
repository of some of the "hip pocket" operations that forced Angleton from
the Agency. The ITG remained buried in the bowels of the CIA until it was
resurrected as Howard Bane's Office of Terrorism in late 1977. The Iran
hostage crisis and the disaster of Desert One enabled Ronald Reagan to steal
the presidency, denounce Carter's Human Rights crusade, and initiate a new
foreign policy based on combating terrorism.

In 1981, Reagan's Director of Central Intelligence, William Casey, saw the
political possibilities of turning Buckley's Office of Domestic Terrorism
into a "back-channel" mechanism, like Chaos under Angleton and Ober, for
conducting secret "hip pocket" operations outside the normal chain of
command. And thus was born the Counter-Terror Network that exists until
today, as the official manifestation of the off-the-shelf Enterprise formed
by Bush and Shackley back in 1976. 13

The ultimate object of Reagan Administration policy was the destruction of
the Soviet Union through the application of "low-intensity warfare" in
Afghanistan; counter-terror in the Middle East, and pro-active terror in
Latin America. Effecting this policy involved a number of illegal covert
actions, and so Casey had to run his Counter-Terror Network outside of the
CIA itself, through a cabal of secret agents throughout the government,
acting under his direction through a group of veteran CIA officers who
embrace the same essentially fascist world view. Like Chaos, the
Counter-Terror Network had a secure communications system, as Peter Dale
Scott observed, "that excluded other bureaucrats with opposing viewpoints."

As Scott notes, "The counter-terrorism network even had its own special
worldwide antiterrorist computer network, codenamed Flashboard, by which
members could communicate exclusively with each other and their collaborators
abroad."

Casey laid the groundwork for this Counter-Terror Network in 1981, when he
appointed David Whipple as the CIA's National Intelligence Officer (NIO) for
counter-terrorism. A veteran CIA officer with extensive service in the Far
East, Whipple had been serving as the CIA's station chief in Switzerland,
where he'd conducted successful counter-terror operations, before being
summoned back to headquarters to take on the job as Casey's NIO for
counter-terrorism.

According to Whipple, Casey's staff consisted of 16 NIOs, eight of whom were
responsible for geographical divisions, while the other eight were
responsible for issues, such as narcotics, counter-intelligence, nuclear
weapons, economics, and in Whipple's case, counter-terror. Under Casey's
direction, every government agency established a counter-terror office as
part of this secret apparatus. Whipple as NIO coordinated them all, collating
all the information they provided at CIA headquarters. In consultation with
Casey, Whipple assisted the CIA's division chiefs, making sure their station
chiefs were properly handling counter-terror issues in their designated areas.

Whipple maintained the Office of Domestic Terrorism after Buckley departed,
through a staff that included an operations chief, intelligence analysts,
photo interpreters, and several case officers. Because it had the authority
to access any division's files and to co-opt its most precious penetration
agents, the ODT was resisted by the divisions--especially by the Near East
Division, which was on the front lines of the war against terrorism. Thus in
1983 Casey sent Buckley to Beirut to personally oversee counter-intelligence
operations there. And he conscripted Oliver North, a doe-eyed Marine
lieutenant colonel assigned to the National Security Council, as his
penetration agent inside the NSC. Notably, Whipple served as North's case
officer in this monumental misadventure.

A Vietnam veteran, cut from the same erratic mold as Liddy and Buckley, North
came from nowhere and in 1982 was the NSC staff coordinator for crisis
management. According to Scott, Vice President Bush was in overall charge as
chair of the Cabinet-level Crisis Management Committee. Starting in February
1983, North, according to Scott, developed a secret Crisis Management Center,
and REX 84, "a plan to suspend the Constitution in the event of a national
crisis such as nuclear war, violent and widespread internal dissent, or
national opposition to a U.S. military invasion abroad."

Sound familiar? In light of the recent national emergency, it is not
surprising that North's plan called for "the round-up and internment of large
numbers of both domestic dissidents (some twenty-six thousand) and aliens
(perhaps as many as from three to four thousand), in camps such as the one in
Oakdale, Louisiana." And just as the vast majority of Congresspersons went
along with the draconian anti-terror legislation passed on 29 October,
Senator Daniel Inouye in 1986 cut-off all debate about North's plan to
suspend the Constitution when Congressman Jack Brooks raised the issue during
the televised Iran-Contra Hearings.

North next formed a personal relationship with Vice President Bush in the
winter of 1983, when they inspected El Salvador's death squad commanders.
After that North's stock soared, and in April 1984 he created the Terrorist
Incident Working Group (TWIG) specifically to rescue several American
hostages, including Buckley, held in Lebanon. North became TWIG's chairman,
and in October 1985 he managed its first successful operation--the capture of
the hijackers of the Achille Lauro.

A few months earlier, in June, after the hijacking of a TWA Flight 847 to
Beirut, Bush created the Vice President's Task Force on Combating Terrorism.
According to Scott, as the NSC's liaison to the Task Force, "North drafted a
secret annex for its report which institutionalized and expanded his
counter-terrorist powers, making himself the NSC coordinator of all
counter-terrorist actions."

On 20 January 1986, North's efforts were crowned with National Security
Decision Directive 207, making him chief coordinator of the Administration's
counter-terror program, and providing him with a secret office and staff
known as the Office To Combat Terrorism. Working through the inter-agency
Operations Sub-Group (OSG), North coordinated the secret Counter-Terror
Network and Secord's Enterprise in a series of mind-boggling illegal
operations, including illegal arms sales to Iran through Israel's
counter-terrorism expert Amiram Nir; illegal Contra drug smuggling by through
CIA asset Manuel Noriega in Panama, by a group of anti-Castro Cubans, all of
whom were directly connected to Bush through his chief of operations, Donald
Gregg, via Rudy Enders and Felix Rodriguez (all Phoenix Program veterans);
illegal arms supply operations to the Contras through right wing domestic
terror groups; and the repression of domestic dissent on a massive scale
unmatched until the recent assaults mounted on the civil liberties of
American citizens by fundamentalist Attorney General John Ashcroft and the
U.S. Congress.

As Scott notes, "the Office to Combat Terrorism became the means whereby
North could coordinatethe propaganda activities of Carl "Spitz" Channel and
Richard Miller (and) the closing of potential embarrassing investigations by
other government agencies."

The ranking members of this Counter-Terror Network included: Donald Gregg
(Bush's National Security Advisor); CIA officer Charles Allen (Whipple's
replacement as Casey's Counter-Terror National Intelligence Officer in 1985);
Robert Oakley at the State Department's Office of Counter-Terrorism (a former
CIA officer with experience in political operations in Vietnam, Oakley
co-chair of North's Operations Sub-Group until mid-1986); Richard Armitage (a
member of the Enterprise) at the Defense Department, Lt. Gen. John Moellering
at the Joint Chiefs of Staff, FBI Counter-Terror Chief, Oliver Revell, and,
wonder of wonders, Michael Ledeen at the National Security Council.

The lynchpin between the Israelis and the Americans, Ledeen had proposed
illegal arms sales to Iran in 1984 through Mossad double agent Manucher
Ghorbanifar. The CIA's Deputy Director for Operations, Clair George,
considered Ghorbanifar totally unreliable, and as having only his personal
financial interests, and Israel's security, at heart. But George's objections
were neutralized in June 1985, when Bush formed the Terrorism Task Force, at
which point the illegal arms sales went forward. And to assure that no one
else in the CIA would obstruct Reagan's secret policy, Casey in January 1986
conscripted veteran CIA officer Duane Clarridge into the Counter-Terror
Network, as its de-facto security chief, and directed Clarridge to form the
CIA's Counter-Terror Center, which exists until today. 14

Terror Central

Under the current "unpresident" Bush, counter-terrorism is a mechanism to
conduct illegal operations on behalf of his economic patrons, to circumvent
Congress, and to his harass domestic critics. Counter-terrorism is the
preferred political and psychological weapon of the radical right wing, and
it was perfected in 1986 with the creation of the CIA's Counter-Terror center

Duane "Dewey" Clarridge, a man with an extensive background in terror, was
well equipped for managing this job. A rabid right wing ideologue, he was
chief of the CIA's station in Turkey in the late 1960s and 1970s, when the
fascist Grey Wolves went on a terror rampage, bombing, shooting and killing
thousands of officials, journalists, students, lawyers, labor organizers,
social democrats, left-wing activists and Kurds. Since then, Turkey' military
dictatorship has been one of America's strongest allies.

A body-builder and certified member of the Old Boy clique that runs the CIA,
Clarridge in August 1976 helped ADDO Ted Shackley recruit Albert Hakim, later
a member of Secord's Enterprise, to spy in Iran.15 (Shackley was soon
thereafter forced into retirement due to his association with "rogue
elephant" Ed Wilson, the CIA officer who sold tons of explosives to Libya.)
Clarridge was serving as the CIA's station chief in Rome when the Pope was
shot, and was chief of Latin America Division from 1981 until 1984, when
Nicaraguan harbors were mined and the psyops "murder manual" was distributed
to the Contras, with his approval. In this capacity Clarridge helped Richard
Secord move PLO weapons captured by Israeli forces during their bloody
invasion of Lebanon, through Noriega in Panama, to the Contras.

Clarridge, as chief of the Europe Division, next played a pivotal role in the
illegal Iran-Contra operation, by providing the back channel, through his
station chief in Lisbon, that allowed North and Secord's Enterprise to sell
HAWK and TOW missiles to the Iranians, at a huge profit for Secord and his
Israeli counterparts, in exchange for the release of several American
hostages. The operation, which subverted the U.S. Constitution and the
Bolland Amendments passed by Congress, made Ronald Reagan into the world's
biggest, but most adorable, liar.

According to Scott, "The intrigues of North, Secord, Clarridge and Oakley at
this point showed a concern for politics rather than security."

In that case, the political imperative was to gain the release of hostages,
so that Reagan, who had sworn "never" to negotiate with terrorists, would not
be unfavorably compared to Carter, or exposed as bold-faced liar, and so Bush
would not lose the up-coming election. Gaining the release of the hostages,
of course, involved the illegal arms sales to Iran, which itself was a
flagrant flimflam by the Israelis and their agents in the U.S. Government.
One of those Israeli agents, Michael Ledeen, while serving as a special
assistant on terrorism at the State Department, made the original proposal in
1982 to divert money from arms sales to fund covert counter-terror
operations. Ledeen also was responsible, while employed at the National
Security Council in 1984, for convincing North and Secord to employ Mossad
double agent and world-class swindler Manucher Ghorbanifar as the middleman
between the Iranians, the Israelis, and the Americans. As the record shows,
it was Ghorbanifar's duplicity and avarice that led the entire misadventure
to its ignoble conclusion.

The homeland thanks you, Michael Ledeen. You're exactly the sort of corrupt
public official we need advising the Bush regime on how to wage its
counter-terror campaign against the Moslem world.

In an interview with this writer, Clarridge described the Counter-Terror
Center, which has coordinated the CIA's back-channel activities since its
formation in 1986, as a central unit with members from the four directorates,
operating under a committee at the National Security Council. With input from
the different divisions, the Counter-Terror Center "divines" anti-terrorism
policy, and then constructs entities that can conduct operations. It is not
function of the U.S. Army Special Forces, according to Clarridge, but pieces
together counter-terrorism "action teams"--commando squads trained to capture
suspected terrorists and bring them to the United States to stand trial.

During his tenure from 1986 to 1988, Clarridge oversaw a massive increase in
intelligence gathering on suspected terrorists, and developed new weapons for
use against them. He worked especially closely with George W. H. Bush, much
to his advantage. Indeed, after it was revealed that Clarridge had assisted
North in the transfer of surface-to-air missiles to Iran, he was forced to
resign from the CIA. He lied about it when called before Special Prosecutor
Lawrence Walsh, and was indicted on seven counts of perjury. But he never
went to trial, thanks to a last minute pardon issued by Bush on December 24,
1992. Bush's pardon provided blanket amnesty to Clarridge, Reagan's Secretary
of Defense Casper Weinburger, Elliott Abrams, a former assistant secretary of
state for Inter-American affairs, former National Security Adviser Robert
McFarlane, CIA officer Alan Fiers, and CIA officer Clair George.

Unlike Clinton, Bush received no criticism for his pardons, though they were
far worse than anything Clinton ever did. For with those pardons, Bush
assured that his role in the October Surprise, and the Iran-Contra Scandal,
and many other crimes, would never be revealed.

The moral to this story is crystal clear: Presidents Nixon, Reagan and Bush
created secret "counter-terror" cabals within their administrations to
conduct illegal operations and harass their domestic political opponents.
Under the aegis of counter-terrorism, the FBI since then has conducted
extensive surveillance against every peace group that opposes any right wing
Administration's blatant terrorism.

Oliver North blamed Washington for losing the Vietnam War. His hatred of the
peace movement was and is palpable, and it's no coincidence that he exploited
his power as chief of counter-terrorism to terrorize his domestic opponents.
As Scott notes, North believes that "the most pressing problem is not in the
Third World, but here at home in the struggle for the minds of the people."

Thus, when Jack Terrell informed the Justice Department that North was
involved in drug smuggling, North labeled Terrell a terrorist and sicced the
FBI's counter-terror unit on him. Like all the other rabid right wing
ideologues presented in this essay, Oliver North was mostly concerned about
his own personal power. But none of his abuses, or those of the Reagan and
Bush regime were ever exposed, because, as McClintock notes, "the very notion
of counter-terror as terrorism was forbidden, while circumlocution was the
norm." 16

Homeland Insecurity Continued in Part Seven:
The Last Decade

Douglas Valentine writes frequently for CounterPunch. He is the author of The
Phoenix Program, the only comprehensive account of the CIA's torture and
assassination operation in Vietnam, as well as TDY a chilling novel about the
CIA and the drug trade.

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