-Caveat Lector-

from:
http://www.parascope.com/index.htm
<A HREF="http://www.parascope.com/index.htm">ParaScope: Something Strange is
Happening!</A>
--[2]--
Now, one thing I've learned about the drug business while researching
this is that in many ways it is the epitome of capitalism. It is the
purest form of capitalism. You have no government regulation, a
wide-open market, a buyer's market -- anything goes. But these things
don't spring out of the ground fully formed. It's like any business. It
takes time to grow them. It takes time to set up networks. So once these
distribution networks got set up and established in primarily South
Central Los Angeles, primarily black neighborhoods, they spread it along
ethnic and cultural lines. You had black dealers from LA going to black
neighborhoods in other cities, because they knew people there, they had
friends there, and that's why you saw these networks pop up from one
 black neighborhood to another black neighborhood.

Now, exactly the same thing happened on the east coast a couple of years
later. When crack first appeared on the east coast, it appeared in
Caribbean neighborhoods in Miami -- thanks largely to the Jamaicans, who
were using their drug profits to fund political gains back home. It was
almost the exact opposite of what happened in LA in that the politics
were the opposite -- but it was the same phenomenon. And once the Miami
market was saturated, they moved to New York, they moved east, and they
started bringing crack from the east coast towards the middle of the
country.

So it seems to me that if you're looking for the root of your drug
problems in a neighborhood, nothing else matters except the drugs, and
where they're coming from, and how they're getting there. And all these
other reasons I cited are used as explanations for how crack became
popular, but it doesn't explain how the cocaine got there in the first
place. And that's where the contras came in.

One of the things which these newspapers who dissed my story were saying
was, we can't believe that the CIA would know about drug trafficking and
let it happen. That this idea that this agency which gets $27 billion a
year to tell us what's going on, and which was so intimately involved
with the contras they were writing their press releases for them, they
wouldn't know about this drug trafficking going on under their noses.
But the Times and the Post all uncritically reported their claims that
the CIA didn't know what was going on, and that it would never permit
its hirelings to do anything like that, as unseemly as drug trafficking.
You know, assassinations and bombings and that sort of thing, yeah, t
hey'll admit to right up front, but drug dealing, no, no, they don't do
that kind of stuff.

Unfortunately, though, it was true, and what has happened since my
series came out is that the CIA was forced to do an internal review, the
DEA and Justice Department were forced to do internal reviews, and these
agencies that released these reports, you probably didn't read about
them, because they contradicted everything else these other newspapers
had been writing for the last couple of years, but let me just read you
this one excerpt. This is from a 1987 DEA report. And this is about this
drug ring in Los Angeles that I wrote about. In 1987, the DEA sent
undercover informants inside this drug operation, and they interviewed
one of the principals of this organization, namely Ivan Torres. And this
is what he said. He told the informant:

"The CIA wants to know about drug trafficking, but only for their own
purposes, and not necessarily for the use of law enforcement agencies.
Torres told DEA Confidential Informant 1 that CIA representatives are
aware of his drug-related activities, and that they don't mind. He said
they had gone so far as to encourage cocaine trafficking by members of
the contras, because they know it's a good source of income. Some of
this money has gone into numbered accounts in Europe and Panama, as does
the money that goes to Managua from cocaine trafficking. Torres told the
informant about receiving counterintelligence training from the CIA, and
had avowed that the CIA looks the other way and in essence allows them
to engage in narcotics trafficking."

This is a DEA report that was written in 1987, when this operation was
still going on. Another member of this organization who was affiliated
with the San Francisco end of it, said that in 1985 -- and this was to
the CIA -- "Cabezas claimed that the contra cocaine operated with the
knowledge of, and under the supervision of, the CIA. Cabezas claimed
that this drug enterprise was run with the knowledge of CIA agent Ivan
G�mez."

Now, this is one of the stories that I tried to do at the Mercury News
 was who this man Ivan G�mez was. This was after my original series came
out, and after the controversy started. I went back to Central America,
and I found this fellow Cabezas and he told me all about Ivan G�mez. And
I came back, I corroborated it with three former contra officials.

Mercury News wouldn't put it in the newspaper. And they said, "We have
no evidence this man even exists."

Well, the CIA Inspector General's report came out in October, and there
was a whole chapter on Ivan G�mez. And the amazing thing was that Ivan
G�mez admitted in a CIA-administered polygraph test that he had been
engaged in laundering drug money the same month that this man told me he
had been engaged in it. CIA knew about it, and what did they do?

Nothing. They said okay, go back to work. And they covered it up for
fifteen years.

So, the one thing that I've learned from this whole experience is, first
of all, you can't believe the government -- on anything. And you
especially can't believe them when they're talking about important
stuff, like this stuff. The other thing is that the media will believe
the government before they believe anything.

This has been the most amazing thing to me. You had a situation where
you had another newspaper who reported this information. The major news
organizations in this country went to the CIA, they went to the Justice
Department, and they said, what about it? And they said, oh, no, it's
not true. Take our word for it. And they went back and put it in the
newspaper! Now, I try to imagine what would happen had reporters come
back to their editors and said, look, I know the CIA is involved in drug
trafficking. And I know the FBI knows about it, and I've got a
confidential source that's telling me that. Can I write a story about
that? What do you think the answer would have been? [Murmurs of "no"
from the audience.] Get back down to the obit desk. Start cranking out
those sports scores. But, if they go to the government and the
government denies something like that, they'll put it in the paper with
no corroboration whatsoever.

And it's only since the government has admitted it that now the media is
willing to consider that there might be a story here after all. The New
York Times, after the CIA report that came out, ran a story on its front
page saying, gosh, the contras were involved in drugs after all, and
gosh, the CIA knew about it.

Now you would think -- at least I would think -- that something like
that would warrant Congressional investigation. We're spending millions
of dollars to find out how many times Bill Clinton had sex with Monica
Lewinsky. Why aren't we interested in how much the CIA knew about drug
traffic? Who was profiting from this drug traffic? Who else knew about
it? And why did it take some guy from a California newspaper by accident
stumbling over this stuff ten years later in order for it to be
important? I mean, what the hell is going on here? I've been a reporter
for almost twenty years. To me, this is a natural story. The CIA is
involved in drug trafficking? Let's know about it. Let's find out about
it. Let's do something about it. Nobody wants to touch this thing.
And the other thing that came out just recently, which nobody seems to
know about, because it hasn't been reported -- the CIA Inspector General
went before Congress in March and testified that yes, they knew about
it. They found some documents that indicated that they knew about it,
yeah. I was there, and this was funny to watch, because these
Congressmen were up there, and they were ready to hear the absolution,
right? "We had no evidence that this was going on..." And this guy sort
of threw 'em a curve ball and admitted that it had happened.

One of the people said, well geez, what was the CIA's responsibility
when they found out about this? What were you guys supposed to do? And
the Inspector General sort of looked around nervously, cleared his
throat and said, "Well... that's kind of an odd history there." And
Norman Dix from Washington, bless his heart, didn't let it go at that.
He said, "Explain what you mean by that?" And the Inspector General
said, well, we were looking around and we found this document, and
according to the document, we didn't have to report this to anybody. And
they said, "How come?" And the IG said, we don't know exactly, but there
was an agreement made in 1982 between Bill Casey -- a fine American, as
we all know [laughter from the audience] -- and William French Smith, wh
o was then the Attorney General of the United States. And they reached
an agreement that said if there is drug trafficking involved by CIA
agents, we don't have to tell the Justice Department. Honest to God.
Honest to God. Actually, this is now a public record, this document.
Maxine Waters just got copies of it, she's putting it on the
Congressional Record. It is now on the CIA's web site, if you care to
journey into that area. If you do, check out the CIA Web Site for Kids,
it's great, I love it. [Laugher from the audience.] I kid you not,
they've actually got a web page for kids.

The other thing about this agreement was, this wasn't just like a
thirty-day agreement -- this thing stayed in effect from 1982 until
1995. So all these years, these agencies had a gentleman's agreement
that if CIA assets or CIA agents were involved in drug trafficking, it
did not need to be reported to the Justice Department.

The CIA's drug trafficking loophole.

So I think that eliminates any questions that drug trafficking by the
contras was an accident, or was a matter of just a few rotten apples. I
think what this said was that it was anticipated by the Justice
Department, it was anticipated by the CIA, and steps were taken to
ensure that there was a loophole in the law, so that if it ever became
public knowledge, nobody would be prosecuted for it.

The other thing is, when George Bush pardoned -- remember those
Christmas pardons that he handed out when he was on his way out the door
a few years ago? The media focused on old Caspar Weinberger, got
pardoned, it was terrible. Well, if you looked down the list of names at
the other pardons he handed out, there was a guy named Claire George,
there was a guy named Al Fiers, there was another guy named Joe
Fern�ndez. And these stories sort of brushed them off and said, well,
they were CIA officials, we're not going to say much more about it.

These were the CIA officials who were responsible for the contra war.
These were the men who were running the contra operation. And the text
of Bush's pardon not only pardons them for the crimes of Iran-contra, it
pardons them for everything. So, now that we know about it, we can't
even do anything about it. They all received presidential pardons.

So where does that leave us? Well, I think it sort of leaves us to rely
on the judgment of history. But that is a dangerous step. We didn't know
about this stuff two years ago; we know about it now. We've got
Congressmen who are no longer willing to believe that CIA agents are
"honorable men," as William Colby called them. And we've got
approximately a thousand pages of evidence of CIA drug trafficking on
the public record finally.

That said, let me tell you, there are thousands of pages more that we
still don't know about. The CIA report that came out in October was
originally 600 pages; by the time we got ahold of it, it was only 300
pages.

One last thing I want to mention -- Bob Parry, who is a fine
investigative reporter, he runs a magazine in Washington called I.F.
Magazine, and he's got a great website, check it out -- he did a story
about two weeks ago about some of the stuff that was contained in the
CIA report that we didn't get to see. And one of the stories he wrote
was about how there was a second CIA drug ring in South Central Los
Angeles that ran from 1988 to 1991. This was not even the one I wrote
about. There was another one there. This was classified.

The interesting thing is, it was run by a CIA agent who had participated
in the contra war, and the reason it was classified is because it is
under investigation by the CIA. I doubt very seriously that we'll ever
hear another word about that.

But the one thing that we can do, and the one thing that Maxine Waters
is trying to do, is force the House Intelligence Committee to hold
hearings on this. This is supposed to be the oversight committee of the
CIA. They have held one hearing, and after they found out there was this
deal that they didn't have to report drug trafficking, they all ran out
of the room, they haven't convened since.

So if you're interested in pursuing this, the thing I would suggest you
do is, call up the House Intelligence Committee in Washington and ask
them when we're going to have another CIA/contra/crack hearing. Believe
me, it'll drive them crazy. Send them email, just ask them, make sure --
they think everybody's forgotten about this. I mean, if you look around
the room tonight, I don't think it's been forgotten. They want us to
forget about it. They want us to concentrate on sex crimes, because,
yeah, it's titillating. It keeps us occupied. It keeps us diverted.

Don't let them do it.

Thanks very much for your attention, I appreciate it. We'll do questions
and answers now for as long as you want.

[Robust applause.]

Question and Answer Session

Gary Webb: I've been instructed to repeat the question, so...

Voice From the Audience: You talked about George Bush pardoning people.
Given George Bush's history with the CIA, do you know when he first knew
about this, and what he knew?

Gary Webb: Well, I didn't at the time I wrote the book, I do now. The
question was, when did George Bush first know about this? The CIA, in
its latest report, said that they had prepared a detailed briefing for
the vice president -- I think it was 1985? -- on all these allegations
of contra drug trafficking and delivered it to him personally. So, it's
hard for George to say he was out of the loop on this one.

I'll tell you another thing, one of the most amazing things I found in
the National Archives was a report that had been written by the U.S.
Attorney's Office in Tampa -- I believe it was 1987. They had just
busted a Colombian drug trafficker named Allen Rudd, and they were using
him as a cooperating witness. Rudd agreed to go undercover and set up
other drug traffickers, and they were debriefing him.

Escobar: "Bush is a traitor."

Now, let me set the stage for you. When you are being debriefed by the
federal government for use as an informant, you're not going to go in
there and tell them crazy-sounding stories, because they're not going to
believe you, they're going to slap you in jail, right? What Rudd told
them was, that he was involved in a meeting with Pablo Escobar, who was
then the head of the Medell�n cartel. They were working out arrangements
to set up cocaine shipments into South Florida. He said Escobar started
ranting and raving about that damned George Bush, and now he's got that
South Florida Drug Task Force set up which has really been making things
difficult, and the man's a traitor. And he used to deal with us, but now
he wants to be president and thinks that he's double-crossing us. And
Rudd said, well, what are you talking about? And Escobar said, we made a
deal with that guy, that we were going to ship weapons to the contras,
they were in there flying weapons down to Columbia, we were unloading
weapons, we were getting them to the contras, and the deal was, we were
supposed to get our stuff to the United States without any problems. And
that was the deal that we made. And now he double-crossed us.

So the U.S. Attorney heard this, and he wrote this panicky memo to
Washington saying, you know, this man has been very reliable so far,
everything he's told us has checked out, and now he's saying that the
Vice President of the United States is involved with drug traffickers.

We might want to check this out. And it went all the way up -- the funny
thing about government documents is, whenever it passes over somebody's
desk, they have to initial it. And this thing was like a ladder, it went
all the way up and all the way up, and it got up to the head of the
Criminal Division at the Justice Department, and he looked at it and
said, looks like a job for Lawrence Walsh! And so he sent it over to
Walsh, the Iran-contra prosecutor, and he said, here, you take it, you
 deal with this. And Walsh's office -- I interviewed Walsh, and he said,
we didn't have the authority to deal with that. We were looking at Ollie
North. So I said, did anybody investigate this? And the answer was,
"no." And that thing sat in the National Archives for ten years, nobody
ever looked at it.

Voice From the Audience: Is that in your book?

Gary Webb: Yeah.

Voice From the Audience: Thank you.

Audience Member #1: Well, first of all, I'd like to thank you for
pursuing this story, you have a lot of guts to do it.

[Applause from the audience.]

Gary Webb: This is what reporters are supposed to do. This is what
reporters are supposed to do. I don't think I was doing anything
special.

Audience Member #1: Still, there's not too many guys like you that are
doing it.

Gary Webb: That's true, they've all still got jobs.

[Laughter, scattered applause.]

Audience Member #1: I just had a couple of questions, the first one is,
I followed the story on the web site, and I thought it was a really
great story, it was really well done. And I noticed that the San Jose
Mercury News seemed to support you for a while, and then all the sudden
that support collapsed. So I was wondering what your relationship is
with your editor there, and how that all played out, and when they all
pulled out the rug from under you.

Gary Webb: Well, the support collapsed probably after the LA Times...
The Washington [Post] came out first, the New York Times came out
second, and the LA Times came out third, and they started getting
nervous. There's a phenomenon in the media we all know, it's called
"piling on," and they started seeing themselves getting piled on. They
sent me back down to Central America two more times to do more reporting
and I came back with stories that were even more outrageous than what
they printed in the newspaper the first time. And they were faced with a
situation of, now we're accusing Oliver North of being involved in drug
trafficking. Now we're accusing the Justice Department of being part and
parcel to this. Geez, if we get beat up over accusing a couple of CIA
agents of being involved in this, what the hell is going to happen now?

And they actually said, I had memos saying, you know, if we run these
stories, there is going to be a firestorm of criticism.

So, I think they took the easy way out. The easy way out was not to go
ahead and do the story. It was to back off the story. But they had a
problem, because the story was true. And it isn't every day that you're
confronted with how to take a dive on a true story.

They spent several months -- honestly, literally, because I was getting
these drafts back and forth -- trying to figure out how to say, we don't
support this story, even though it's true. And if you go back and you
read the editor's column, you'll see that the great difficulty that he
had trying to take a dive on this thing. And he ended up talking about
"gray areas" that should have been explored a little more and
"subtleties" that we should have not brushed over so lightly, without
disclosing the fact that the series had originally been four parts and
they cut it to three parts, because "nobody reads four part series'
anymore." So, that was one reason.

The other reason was, you know, one of the things you learn very quickly
when you get into journalism is that there's safety in numbers. Editors
don't like being out there on a limb all by themselves. I remember very
clearly going to press conferences, coming back, writing a story,
sending it in, and my editor calling up and saying, well gee, this isn't
what AP wrote. Or, the Chronicle just ran their story, and that's not
what the Chronicle wrote. And I'd say, "Fine. Good." And they said, no,
we've got to make it the same, we don't want to be different. We don't
want our story to be different from everybody else's.

And so what they were seeing at the Mercury was, the Big Three
newspapers were sitting on one side of the fence, and they were out
there by themselves, and that just panicked the hell out of them. So,
you have to understand newspaper mentality to understand it a little
bit, but it's not too hard to understand cowardice, either. I think a
lot of that was that they were just scared as hell to go ahead with the
story.

Audience Member #1: Were they able to look you in the eye, and...

Gary Webb: No. They didn't, they just did this over the phone. I went to
Sacramento.

Audience Member #1: When did you find out about it, and what did you...
Gary Webb: Oh, they called me up at home, two months after I turned in
my last four stories, and said, we're going to write a column saying,
you know, we're not going ahead with this. And that's when I jumped in
the car and drove up there and said, what the hell's going on? And I got
all these mealy-mouthed answers, you know, geez, gray areas, subtleties,
one thing or another... But I said, tell me one thing that's wrong with
the story, and nobody could ever point to anything. And today, to this
day, nobody has ever said there was a factual error in that story.

[Inaudible question from the audience.]

Gary Webb: The question was, the editors are one thing, what about the
readers? Um... who cares about the readers? Honestly. The reader's don't
run the newspaper.

[Another inaudible question from the audience regarding letters to the
editor and boycotts of the newspaper.]

Gary Webb: Well, a number of them did, and believe me, the newspaper
office was flooded with calls and emails. And the newspaper, to their
credit, printed a bunch of them, calling it the most cowardly thing
they'd ever seen. But in the long run, the readers, you know, don't run
the place. And that's the thing about newspaper markets these days. You
folks really don't have any choice! What else are you going to read? And
the editors know this.

When I started in this business, we had two newspapers in town where I
worked in Cincinnati. And we were deathly afraid that if we sat on a
story for 24 hours, the Cincinnati Inquirer was going to put it in the
paper, and we were going to look like dopes. We were going to look like
we were covering stuff up, we were going to look like we were protecting
somebody. So we were putting stuff in the paper without thinking about
it sometimes, but we got it in the paper. Now, we can sit on stuff for
months, who's going to find out about it? And even if somebody found out
about it, what are they going to do? That's the big danger that
everybody has sort of missed. These one-newspaper towns, you've got no
choice. You've got no choice. And television? Television's not going to
do it. I mean, they're down filming animals at the zoo!

[Laughter and applause.]

Audience Member #2: I assume you have talked to John Cummings, the one
that wrote Compromised, that book?

Gary Webb: I talked to Terry Reed, who was the principal author on that,
yeah.

Audience Member #2: Well, that was a well-documented book, and I had
just finished reading this when I happened to look down and see the
headlines on the Sunday paper. And he stated that Oliver North told him
personally that he was a CIA asset that manufactured weapons.

Gary Webb: Right.

Audience Member #2: When he discovered that they were importing cocaine,
he got out of there. And they chased him with his family across country
for two years trying to catch him. But he had said in that book that
Oliver North told him that Vice President Bush told Oliver North to
dirty Clinton's men with the drug money. Which I assumed was what
Whitewater was all about, was finding the laundering and trying to find
something on Clinton. Do you know anything about that?

Gary Webb: Yeah, let me sum up your question. Essentially, you're asking
about the goings-on in Mena, Arkansas, because of the drug operations
going on at this little air base in Arkansas while Clinton was governor
down there. The fellow you referred to, Terry Reed, wrote a book called
Compromised which talked about his role in this corporate operation in
Mena which was initially designed to train contra pilots -- Reed was a
pilot -- and it was also designed after the Boland Amendment went into
effect to get weapons parts to the contras, because the CIA couldn't
provide them anymore. And as Reed got into this weapons parts business,
he discovered that the CIA was shipping cocaine back through these
weapons crates that were coming back into the United States. And when he
blew the whistle on it, he was sort of sent on this long odyssey of
criminal charges being filed against him, etcetera etcetera etcetera. A
lot of what Reed wrote is accurate as far as I can tell, and a lot of it
was documented.

There is a House Banking Committee investigation that has been going on
now for about three years, looking specifically at Mena, Arkansas,
looking specifically at a drug trafficker named Barry Seal, who was one
of the biggest cocaine and marijuana importers in the south side of the
United States during the 1980s. Seal was also, coincidentally, working
for the CIA, and was working for the Drug Enforcement Administration.
I don't know how many of you remember this, but one night Ronnie Reagan
got on TV and held up a grainy picture, and said, here's proof that the
Sandanistas are dealing drugs. Look, here's Pablo Escobar, and they're
all loading cocaine into a plane, and this was taken in Nicaragua. This
was the eve of a vote on the contra aid. That photograph was set up by
Barry Seal. The plane that was used was Seal's plane, and it was the
same plane that was shot down over Nicaragua a couple of years later
that Eugene Hasenfus was in, that broke open the whole Iran-contra
scandal.

The Banking Committee is supposed to be coming out with a report in the
next couple of months looking at the relationship between Barry Seal,
the U.S. government and Clinton's folks. Alex Cockburn has done a number
of stories on this company called Park-On Meter down in Russellville,
Arkansas, that's hooked up with Clinton's family, hooked up with
Hillary's law firm, that sort of thing. To me, that's a story people
ought to be looking at. I never thought Whitewater was much of a story,
frankly. What I thought the story was about was Clinton's buddy Dan
Lasater, the bond broker down there who was a convicted cocaine
trafficker. Clinton pardoned him on his way to Washington. Lasater was a
major drug trafficker, and Terry Reed's book claims Lasater was part and
parcel with this whole thing.

Voice From the Audience: Cockburn's newsletter is called Counterpunch,
 and he's done a good job of defending you in it.

Gary Webb: Yeah, Cockburn has also written a book called Whiteout, which
is a very interesting look at the history of CIA drug trafficking.

Actually, I think it's selling pretty well itself. The New York Times
 hated it, of course, but what else is new?

Audience Member #2: Well I just wanted to mention that he states also --
I guess it was Terry Reed who was actually doing the work -- he said
Bush was running the whole thing as vice president.

Gary Webb: I think that George Bush's role in this whole thing is one of
the large unexplored areas of it.

Audience Member #2: Which is why I think Reagan put him in as vice
president, because of his position with the CIA.

Gary Webb: Well, you know, that whole South Florida Drug Task Force was
full of CIA operatives. Full of them. This was supposed to be our
vanguard in the war against cocaine cartels, and if those Colombians are
to be believed, this was the vehicle that we were using to ship arms and
allow cocaine into the country, this Drug Task Force. Nobody's looked at
that. But there are lots of clues that there's a lot to be dug out.

Audience Member #3: Thank you, Gary. I lost my feature columnist
position at my college paper for writing a satire of Christianity some
years ago, and...

Gary Webb: That'll do it, yeah. [Laughter from the audience.]

Audience Member #3: And I lost my job twice in the last five years
because of my activism in the community, but I got a job [inaudible].
But my question is, I knew someone in the mid-'80s who said that he was
in the Navy, and that he had information that the Navy was involved in
delivering cocaine to this country. Another kind of bombshell, I'd like
to have you comment on it, I saw a video some years ago that said the
UFO research that's being done down in the southwest is being funded by
drug money and cocaine dealings by the CIA, and that there are 25 top
secret levels of government above the Top Secret category, and that
there are some levels that even the president doesn't know about. So
there's another topic for another book, I just wanted to have you
comment...

Gary Webb: A number of topics for another book. [Laughter from the
audience.] I don't know about the UFO research, but I do know you're
right that we have very little idea how vast the intelligence community
in this country is, or what they're up to. I think there's a great story
brewing -- it's called the ECHELON program, and it involves the sharing
of eavesdropped emails and cell phone communications, because it is
illegal for them to do it in this country. So they've been going to New
Zealand and Australia and Canada and having those governments eavesdrop
on our conversations and tell us about it. I've read a couple of stories
about it in the English press, and I read a couple of stories about it
in the Canadian press, but I've seen precious little in the American
press. But there's stuff on the Internet that circulates about that, if
you're interested in the topic. I think it's called the ECHELON program.

Audience Member #4: I'm glad you brought up James Burke and his
Connections, because there are a lot of connections here. One I didn't
hear too much about, and I know you've done a lot of research on, was
how computers and high tech was used by the Crips and Bloods early on. I
lived in south LA prior to this, knew some of these people, and you're
right, they had virtually no education. And to suddenly have an
operation that's computer literate, riding out of Bakersfield, Fresno,
on north and then east in a very quick period -- I'm still learning the
computer, I'm probably as old as you are, or older -- so I'd like to
hear something on that. The whole dislocation of south LA that occurred
-- the Watts Festival, the whole empowerment of the black community was
occurring beginning in the late '60s and into the early '70s and
mid-'70s, and then collapses into a sea of flipping demographics, and
suddenly by 1990 it is El Salvadoran-dominated. And that's another
curious part of this equation as we talk about drugs.

Gary Webb: Well, that's quite a bevy of things there. As far as the
sophistication of the Crips and the Bloods, the one thing that I
probably should have mentioned was that when Danilo Bland�n went down to
South Central to start selling this dope, he had an M.B.A. in marketing.
So he knew what he was doing. His job for the Somoza government was
setting up wholesale markets for agricultural products. He'd received an
M.B.A. thanks to us, actually -- we helped finance him, we helped send
him to the University of Bogata to get his M.B.A. so he could go back to
Nicaragua, and he actually came to the United States to sell dope to the
gangs. So this was a very sophisticated operation.

One of the money launderers from this group was a macro-economist -- his
uncle, Orlando Murillo, was on the Central Bank of Nicaragua. The
weapons advisor they had was a guy who'd been a cop for fifteen years.
They had another weapons advisor who had been a Navy SEAL. You don't get
these kinds of people by putting ads in the paper. This is not a drug
ring that just sort of falls together by chance. This is like an
all-star game. Which is why I suspect more and more that this thing was
set up by a higher authority than a couple of drug dealers.

Audience Member #5: Hi Gary, I just want to thank you for going against
the traffic on this whole deal. I'm in the journalism school up at U. of
O., and I'm interested in the story behind the story. I was hoping you
could share some anecdotes about the kind of activity that you engaged
in to get the story. For example, when you get off a plane in Nicaragua,
what do you do? Where do you start? How do you talk to "Freeway" Ricky?
How do you go against a government stonewall?

Gary Webb: The question is, how do you do a story like this,
essentially. Well, thing I've always found is, if you go knock on
somebody's door, they're a lot less apt to slam it in your face than if
you call them up on the telephone. So, the reason I went down to Nic
aragua was to go knock on doors. I didn't go down there and just step
off a plane -- I found a fellow down in Nicaragua and we hired him as a
stringer, a fellow named George Hidell who is a marvelous investigative
reporter, he knew all sorts of government officials down there. And I
speak no Spanish, which was another handicap. George speaks like four
languages. So, you find people like that to help you out.

With these drug dealers, you know, it's amazing how willing they are to
talk. I did a series while I was in Kentucky on organized crime in the
coal industry. And it was about this mass of stock swindlers who had
looted Wall Street back in the '60s and moved down to Kentucky in the
'70s while the coal boom was going on, during the energy shortage. The
lesson I learned in that thing -- I thought these guys would never talk
to me, I figured they'd be crazy to talk to a reporter about the scams
they were pulling. But they were happy to talk about it, they were
flattered that you would come to them and say, hey, tell me about what
you do. Tell me your greatest knock-off. Those guys would go on forever!
So, you know, everybody, no matter what they do, they sort of have pride
in their work... [Laughter from the audience.] And, you know, I found
that when you appeared interested, they would be happy to tell you.

The people who lied to me, the people who slammed doors in my face, were
the DEA and the FBI. The DEA called me down -- I wrote about this in the
book -- they had a meeting, and they were telling me that if I wrote
this story, I was going to help drug traffickers bring drugs into the
country, and I was going to get DEA agents killed, and this, that and
the other thing, all of which was utterly bullshit. So that's the thing
-- just ask. There's really no secret to it.

Audience Member #6: I'd like to ask a couple of questions very quickly.
The first one is, if you wouldn't mind being a reference librarian for a
moment -- there was the Golden Triangle. I was just wondering if you've
ever, in your curiosity about this, touched on that -- the drug rings
and the heroin trade out of Southeast Asia. And the second one is about
the fellow from the Houston Chronicle, I don't remember his name right
off, but you know who I'm talking about, if you could just touch on that
a little bit...

Gary Webb: Yes. The first question was about whether I ever touched on
what was going on in the Golden Triangle. Fortunately, I didn't have to
-- there's a great book called The Politics of Heroin in Southeast Asia,
 by Alfred McCoy, which is sort of a classic in CIA drug trafficking
lore. I don't think you can get any better than that. That's a great
reference in the library, you can go check it out. McCoy was a professor
at the University of Wisconsin who went to Laos during the time that the
secret war in Laos was going on, and he wrote about how the CIA was
flying heroin out on Air America. That's the thing that really surprised
me about the reaction to my story was, it's not like I invented this
stuff. There's a long, long history of CIA involvement in drug traffic
which Cockburn gets into in Whiteout.

And the second question was about Pete Brewton -- there was a reporter
in Houston for the Houston Post named Pete Brewton who did the series --
I think it was '91 or '92 -- on the strange connections between the S&L
collapses, particularly in Texas, and CIA agents. And his theory was
that a lot of these collapses were not mismanagement, they were
intentional. These things were looted, with the idea that a lot of the
money was siphoned off to fund covert operations overseas. And Brewton
wrote this series, and it was funny, because after all hell broke loose
on my story, I called him up, and he said, "Well, I was waiting for this
to happen to you." And I said, "Why?" And he said, "I was exactly like
you are. I'd been in this business for twenty years, I'd won all sorts
of awards, I'd lectured in college journalism courses, and I wrote a
series that had these three little letters C-I-A in it. And suddenly I
was unreliable, and I couldn't be trusted, and Reed Irvine at Accuracy
In Media was writing nasty things about me, and my editor had lost
confidence in me, so I quit the business and went to law school."

Brewton wrote a book called George Bush, CIA and the Mafia. It's hard to
find, but it's worth looking up if you can find it. It's all there, it's
all documented. See, the difference between his story and my story was,
we put ours out on the web, and it got out. Brewton's story is sort of
confined to the printed page, and I think the Washington Journalism
Review actually wrote a story about, how come nobody's writing about
this, nobody's picking up this story. Nobody touched this story, it just
sort of died. And the same thing would have happened with my series, had
we not had this amazing web page. Thank God we did, or this thing would
have just slipped underneath the waves, and nobody would have ever heard
about it.

Audience Member #7: I'm glad you're here. I guess the CIA, there was
something I read in the paper a couple of years ago, that said the CIA
is actually murdering people, and they admitted it, they don't usually
do that.

Gary Webb: It's a new burst of honesty from the new CIA.

Audience Member #7: They'll murder us with kindness. In the Chicago
police force, there were about 10 officers who were kicked off the
police force for doing drugs or selling drugs, and George Bush or
something... I heard that he had a buddy who had a lot of money in drug
testing equipment, so that's one reason everybody has to pee in a cup
now... [Laughter from the audience.] The other thing I found, there was
a meth lab close to here, and somebody who wasn't even involved with it,
he was paralyzed... And as you know, we have the "Just Say No to Drugs"
deal... What do you think we can do to stop us, the People, from being
hypnotized once again from all these shenanigans, doing other people
injury in terms of these kinds of messages, at the same time they're
selling. Because all this money is being spent for all this...

Gary Webb: I guess the question is, what could you do to keep from being
hypnotized by the media message, specifically on the Drug War? Is that
what you're talking about?

Audience Member #7: Yeah, or all the funds... like, there's another
thing here with the meth lab, they say we'll kind of turn people in...
Gary Webb: Oh yeah, the nation of informers.

Audience Member #7: Yeah.

Gary Webb: That's something I have to laugh about -- up until I think
'75 or '76, probably even later than that, you could go to your doctor
and get methamphetamine. I mean, there were housewives by the hundreds
of thousands across the United States who were taking it every day to
lose weight, and now all the sudden it was the worst thing on the face
of the earth. That's one thing I got into in the book, was the sort of
crack hysteria in 1986 that prompted all these crazy laws that are still
on the books today, and the 100:1 sentencing ratio... I don't know how
many of you saw, on PBS a couple of nights back, there was a great show
on informants called "Snitch." [Murmurs of recognition from the
audience.] Yeah, on Frontline. That was very heartening to see, because
I don't think ten years ago that it would have stood a chance in hell of
getting on the air.

What I'm seeing now is that a lot of people are finally waking up to the
idea that this "drug war" has been a fraud since the get-go. My personal
opinion is, I think the main purpose of this whole drug war was to sort
of erode civil liberties, very slowly and very gradually, and sort of
put us down into a police state. [Robust burst of applause from the
audience.] And we're pretty close to that. I've got to hand it to them,
they've done a good job. We have no Fourth Amendment left anymore, we're
all peeing in cups, and we're all doing all sorts of things that our
parents probably would have marched in the streets about.

The solution to that is to read something other than the daily
newspaper, and turn off the TV news. I mean, I'm sorry, I hate to say
that, but that's mind-rot. You've got to find alternative sources of
information. [Robust applause.]

Voice From the Audience: How can you say that it was all a chain
reaction, that it was not done deliberately, and on the other hand say
it has at the same time deliberately eroded our rights?

Gary Webb: Well, the question was, how can I say on one hand it was a
chain reaction, and on the other hand say the drug war was set up
deliberately to erode our rights. I mean, you're talking about sort of
macro versus micro. And I do not give the CIA that much credit, that
they could plan these vast conspiracies down through the ages and have
them work -- most of them don't.

What I'm saying is, you have police groups, you have police lobbying
groups, you have prison guard groups -- they seize opportunities when
they come along. The Drug War has given them a lot of opportunities to
say, okay, now let's lengthen prison sentences. Why? Well, because if
you keep people in jail longer, you need more prison guards. Let's build
more prisons. Why? Well, people get jobs, prison guards get jobs. The
police stay in business. We need to fund more of them. We need to give
bigger budgets to the correctional facilities. This is all very
conscious, but I don't think anybody sat in a room in 1974 and said,
okay, by 1995, we're going to have X number of Americans locked up or
under parole supervision. I don't think they mind -- you know, I think
they like that. But I don't think it was a conscious effort. I think it
was just one bad idea, after another bad idea, compounded with a stupid
idea, compounded with a really stupid idea. And here we are. So I don't
know if that answers your question or not...

Audience Member #8: To me, the Iran-contra story was one of the most
interesting and totally frustrating things. And the more information,
the more about it I heard -- we don't know anything about it, I mean, if
you look for any official data, they deny everything. And to see Ollie
North, the upstanding blue-eyed American, standing there lying through
his teeth, and we knew it... [Inaudible comment, "before Congress and
the President"?] What galls me is that these people who are guilty of
high crimes and misdemeanors are now getting these enormous pensions,
and we have to pay for these bums. It sickens me!

Gary Webb: Right.

Audience Member #8: And I actually have a question -- this is my
question, by the way, I know you have a thousand other questions
[laughter from the audience] -- but the one that stays with me, and has
always bothered me, was the Christic Institute, and I thought it was
fantastic. And they were hit with this enormous lawsuit, and they had to
bail out. This needs to be ["rehired"?] because they knew what they were
doing, they had all the right answers, and they were run out of office,
so to say, in disgrace, because of this lawsuit.

Gary Webb: The question was about the Christic Institute, and about how
the Iran-contra controversy is probably one of the worst scandals. I
agree with you, I think the Iran-contra scandal was worse than
Watergate, far worse than this nonsense we're doing now. But I'll tell
you, I think the press played a very big part in downplaying that
scandal. One of the people I interviewed for the book was a woman named
Pam Naughton, who was one of the best prosecutors that the Iran-contra
committee had. And I asked her, why -- you know, it was also the first
scandal that was televised, and I remember watching them at night. I
would go to work and I'd set the VCR, and I'd come home at night and I'd
watch the hearings. Then I'd pick up the paper the next morning, and it
was completely different! And I couldn't figure it out, and this has
bothered me all these years.

So when I got Pam Naughton on the phone, I said, what the hell happened
to the press corps in Washington during the Iran-contra scandal? And she
said, well, I can tell you what I saw. She said, every day, we would
come out at the start of this hearings, and we would lay out a stack of
documents -- all the exhibits we were going to introduce -- stuff that
she thought was extremely incriminating, front page story after front
page story, and they'd sit them on a table. And she said, every day the
press corps would come in, and they'd say hi, how're you doing, blah
blah blah, and they'd go sit down in the front row and start talking ab
out, you know, did you see the ball game last night, and what they saw
on Johnny Carson. And she said one or two reporters would go up and get
their stack of documents and go back and write about it, and everybody
else sat in the front row, and they would sit and say, okay, what's our
story today? And they would all agree what the story was, and they'd go
back and write it. Most of them never even looked at the exhibits.
And that's why I say it was the press's fault, because there was so much
stuff that came out of those hearings. That used to just drive me crazy,
you would never see it in the newspaper. And I don't think it's a
conspiracy -- if anything, it's a conspiracy of stupidity and laziness.

I talked to Bob Parry about this -- when he was working for Newsweek
 covering Iran-contra, they weren't even letting him go to the hearings.
He had to get transcripts messengered to him at his house secretly, so
his editors wouldn't find out he was actually reading the transcripts,
because he was writing stories that were so different from everybody
else's.

Bob Parry tells a story of being at a dinner party with Bobby Inman from
the CIA, the editor of Newsweek, and all the muckity-mucks -- this was
his big introduction into Washington society. And they were sitting at
the dinner table in the midst of the Iran-contra thing, talking about
everything but Iran-contra. And Bob said he had the bad taste of
bringing up the Iran-contra hearing and mentioning one particularly bad
aspect of it. And he said, the editor of Newsweek looked at him and
said, "You know, Bob, there are just some things that it's better the
country just doesn't know about." And all these admirals and generals
sitting around the table all nodded their heads in agreement, and they
wanted to talk about something else.

That's the attitude. That's the attitude in Washington. And that's the
attitude of the Washington press corps, and nowadays it's even worse
than that, because now, if you play the game right, you get a TV show.
Now you've got the McLaughlin Group. Now you get your mug on CNN. You
know. And that's how they keep them in line. If you're a rabble rouser,
and a shit-stirrer, they don't want your type on television. They want
the pundits.

The other question was about the Christic Institute. They had it all
figured out. The Christic Institute had this thing figured out. They
filed suit in May of 1986, alleging that the Reagan administration, the
CIA, this sort of parallel government was going on. Oliver North was
involved in it, you had the Bay of Pigs Cubans that were involved in it
down in Costa Rica, they had names, they had dates, and they got
murdered. And the Reagan administration's line was, they're a bunch of
left-wing liberal crazies, this was conspiracy theory. If you want to
see what they really thought, go to Oliver North's diaries, which are
public -- the National Security Archive has got them, you can get them
-- all he was writing about, after the Christic Institute's suit was
filed, was how we've got to shut this thing down, how we have to di
scredit these witnesses, how we've got to get this guy set up, how we've
got to get this guy out of the country... They knew that the Christic
Institute was right, and they were deathly afraid that the American
public was going to find out about it.

I am convinced that the judge who was hearing the case was part and
parcel to the problem. He threw the case out of court and fined the
Christic Institute, I think it was $1.3 million, for even bringing the
lawsuit. It was deemed "frivolous litigation." And it finally bankrupted
them. And they went away.

But that's the problem when you try to take on the government in its own
arena, and the federal courts are definitely part of its own arena. They
make the rules. And in cases like that, you don't stand a chance in
hell, it won't happen.

Voice From the Audience: But if you cannot get the truth in the courts,
if you cannot write it in the papers, then what do you do?

Gary Webb: You do it yourself. You do it yourself. You've got to start
rebuilding an information system on your own. And that's what's going
on. It's very small, but it's happening. People are talking to each
other through newsgroups on the Internet. People are doing Internet
newsletters.

Voice From the Audience: Do you have a website?

Emcee: Let's use the mike, let's use the mike.

Gary Webb: The question is, do I have a website. No, I don't, but I'm
building one.

[Inaudible question from the audience.]

Gary Webb: Well, let's let these people who have been standing in
line...

[Commotion, murmuring. Someone calls out, "Please use the mike."]

Audience Member #9: When you mentioned prisons a moment ago, I couldn't
help but remember that it is America's fastest-growing industry, the
"prison industry" -- which is a hell of a phrase unto itself. But it
seems that the CIA had people aligned throughout Central America at one
point, and El Salvador, with the contras, and in Honduras and Nicaragua,
and in Panama, Manuel Noriega...

Gary Webb: Our "man in Panama," that's right.

Audience Member #9: Yeah. But something went wrong with him, and he got
pinched in public. And I'm interested to know what you think about that.

Gary Webb: The question is about Manuel Noriega, who was our "man in
Panama" for so many years. What happened to Noriega is that -- I don't
think it had anything to do with the fact that he was a drug trafficker,
because we knew that for years. What it had to do with was what is going
to happen at the end of this year, which is when control of the Panama
Canal goes over to the Panamanians. If you read the New York Times story
that Seymour Hersh wrote back in June of 1986 that exposed Noriega
publicly as a drug trafficker and money launderer, there were some very
telling phrases in it. All unsourced, naturally, you know --
unattributed comments from high-ranking government officials -- but they
talked about how they were nervous that Noriega had become unreliable.

And with control of the Panama Canal reverting to the Panamanian
government, they were very nervous at the idea of having somebody as
"unstable" as Noriega running the country at that point. And I think
that was a well-founded fear. You've got a major drug trafficker
controlling a major maritime thoroughway. I can see the CIA being
nervous about being cut out of the business. [Laughter from the
audience.]

But I think that's what the whole thing with Noriega was about -- they
wanted him out of there, because they wanted somebody that they could
control a little more closely in power in Panama for when the canal gets
reverted back to them.

Audience Member #9: Was there much of a profit difference between
Nicaragua and Panama as far as the drugs went?

Gary Webb: Well, what Noriega had done was sort of create an
international banking center for drug money. That was his part of it.
Nicaragua was nothing ever than just a trans-shipment point. Central
America was never anything more than a trans-shipment point. Columbia
Peru and Bolivia were the producers, and the planes needed a place to
refuel, and that's all that Central America ever was. The banking was
all done in Panama.

Audience Member #10: You talk about how they sat on their stories, the
newspapers? Why did they suddenly decide to pursue the stories?
Gary Webb: Which stories are these?

Audience Member #10: The stories about the crack dealing and the CIA.
Why did they suddenly decide that, well, actually...

Gary Webb: The question was -- correct me if I'm wrong -- the question
raised the fact that the other newspapers didn't do anything about this
story for a while, and then after I wrote it they came after me. Is that
what you're asking?

Audience Member #10: Well, yeah, and then eventually the CIA admitted
it... and I mean, why are people asking, it sat for a long time, and
then suddenly everyone was on it. What was the turning point that made
them decide to pursue it?

Gary Webb: The turning point that made them decide to pursue the story
was the fact that it had gotten out over the Internet, and people were
calling them up saying, why don't you have the story in your newspaper?
You know, I don't think the subject matter frightened the major media as
much as the fact that a little newspaper in Northern California was able
to set the national agenda for once. And people were marching in the
streets, people were holding hearings in Washington, they were demanding
Congressional hearings, you had John Deutch, the CIA director, go down
on that surreal trip down to South Central to convince everyone that
everything was okay... [Laughter from the audience.] And all of this was
happening without the big media being involved in it at all. And the
reason that happened was because we had an outlet -- we had the web. And
the people at the Mercury News did a fantastic job on this website.

And so, news was marching on without them. There's a professor at the
University of Wisconsin who's done a paper on the whole "Dark Alliance"
thing, and her thesis is that this story was shut down more because of
how it got out than for what it actually said. That it was an attempt by
the major media to regain control of the Internet, and to suggest that
unless they're the ones who are putting it out, it's unreliable. Which I
think you see in a lot of stories. The mainstream press gladly promotes
the idea that you can't believe anything you read on the Internet, it's
all kooks, it's all conspiracy theorists... And there are, I mean, I
admit, there are a lot of them out there, but it's not all false. But
the idea that we're being taught is, unless it's got our name on it, you
can't believe it. So they can retain control of the means of
communication anyway.

Audience Member #11: You mentioned Iran-contra, which was private
foreign policy in defiance of Congress, which means it was a high crime.
>From there, we get more drugs, we get erosion of civil liberties and the
loss of the Fourth Amendment, which you mentioned. And we have to get
that back, because without it, we're just commodities to one another. So
what I'd like to ask you is, what are you working on now? And do you
have your own journalistic chain of reaction? Are you going to be doing
something that connects back to this?

Gary Webb: The question is what am I doing now -- believe it or not, I'm
working for the government. [Laughter from the audience.] I work for the
California legislature, and I do investigations of state agencies. I
just wrote a piece for Esquire magazine which should be out in April on
another fabulous DEA program that they're running. Actually, part of
it's based here in Oregon, called Operation Pipeline. That story is
coming out in April, and Esquire told me they want me to write more
stuff for them, they want me to do some investigative reporting for
them, so I'll be working for them. And I'm putting together another book
proposal, and a couple of other things. I'm not going to work for
newspapers any more, I learned my lesson.

Audience Member #12: A year ago the editor of your newspaper was here to
speak, sponsored by the University of Oregon School of Journalism.
Before I got up here, I took a casual look around -- I don't know all of
the members of the journalism faculty, but I didn't recognize any. We
did have a student here who got up and asked a question. That leads to
this question: I'd like, if you don't mind, to ask if there is someone
from the University of Oregon journalism faculty here, would they mind
being acknowledged and raising their hand?

Gary Webb: All right, there's one back there.

Audience Member #12: There is one. Okay. [Applause from the audience.]
I'm pleased to see it. There is that one person. My point is, I think
much of what you've said this evening constitutes an indictment -- and a
valid indictment -- of the university journalism programs in this
country. [Applause.] Most Americans and I believe -- and I'm interested
in your reaction -- that it reinforces that indictment when we see, to
that person's credit, that she is the only faculty member from our
school of journalism to hear you tonight.

Gary Webb: I think the general question was about the state of the
journalism schools. The one thing journalism schools don't teach, by and
large, is investigative reporting. They teach stenography very well.
That's why I consider most of journalism today to be stenography. You go
to a press conference, you write down the quotes accurately, you come
back, you don't provide any context, you don't provide any perspective,
because that gets into analysis, and heavens knows, we don't want any
analysis in our newspapers.

But you report things accurately, you report things fairly, and even if
it's a lie you put it in the newspaper, and that's considered
journalism. I don't consider that journalism, I consider that
stenography. And that is the way they teach journalism in school, that's
the way I was taught. Unless you go to a very different journalism
school from the kinds that most kids go to, that's what you're taught.
Now, there are specialized journalism schools, there are master's
programs like the Kiplinger Program at Ohio State, that's very good.

So, I'm not saying that all journalism schools are bad, but they don't
teach you to be journalists. They discourage you from doing that, by and
large. And I don't think it's the fault of the journalism professors, I
just think that's the way things have been taught in this country for so
long, that they just do it automatically. I'd be interested in hearing
the professor's thoughts about it, but that's sort of the way I look at
things. I spent way too many years in journalism school. I kind of got
shed of those notions after I got out in the real world.

[End of transcript.]

� ParaScope, Inc. 1999
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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