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<A HREF="http://www.parascope.com/index.htm">ParaScope: Something Strange is
Happening!</A>
-----
Investigative journalist Gary Webb speaks to a packed house on the CIA's
connection to drug trafficking, and the failure of the media to expose
the truth.

by Charles Overbeck
Matrix Editor
[EMAIL PROTECTED]

Dark Alliance author Gary Webb gave a fascinating talk on the evening of
January 16, outlining the findings of his investigation of the CIA's
connection to drug trafficking by the Nicaraguan contras. Approximately
300 people, crowded into the First United Methodist Church in Eugene,
Oregon, listened with rapt attention as Webb detailed his experiences.
Webb's riveting speech was followed by an intense question-and-answer
session, during which he candidly answered questions about the "Dark
Alliance" controversy, his firing from the San Jose Mercury News, and
CIA/contra/cocaine secrets that still await revelation.

It was a fascinating exchange packed with detailed information on the
latest developments in the case. Webb spoke eloquently, with the ease
and confidence of an investigator who has spent many long hours
researching his subject, and many more hours sharing this information
with the public. ParaScope will have a full report on Webb's talk on
Wednesday, January 20.

In the meantime, you get another opportunity to see a ParaScope article
come together from scratch, from behind the scenes. So check back with
us soon for the latest additions as this piece is developed.

[Last update 1:40 a.m. EST 1/21. Video clips and hypertext annotations
coming soon.]

Transcript: Gary Webb Speaks on CIA Connections to Contra Drug
Trafficking (and Related Topics)
Date: January 16, 1999
Time: 7:30 p.m.
Location: First United Methodist Church, 1376 Olive St., Eugene, Oregon

Gary Webb: I look like an idiot up here with all these mikes, the CIA
agents are probably behind one or the other... [laughter from the
audience]. It's really nice to be in Eugene -- I've been in Madison,
Wisconsin talking about this, I've been in Berkeley, I've been in Santa
Monica, and these are sort of like islands of sanity in this world
today, so it's great to be on one of those islands.

One of the things that is weird about this whole thing, though, is that
I've been a daily news reporter for about twenty years, and I've done
probably a thousand interviews with people, and the strangest thing is
being on the other side of the table now and having reporters ask me
questions. One of them asked me about a week ago -- I was on a radio
show -- and the host asked me, "Why did you get into newspaper
reporting, of all the media? Why did you pick newspapers?" And I really
had to admit that I was stumped. Because I thought about it -- I'd been
doing newspaper reporting since I was fourteen or fifteen years old --
and I really didn't have an answer.

So I went back to my clip books -- you know, most reporters keep all
their old clips -- and I started digging around trying to figure out if
there was one story that I had written that had really tipped the
balance. And I found it. And I wanted to tell you this story, because it
sort of fits into the theme that we're going to talk about tonight.

I think I was fifteen, I was working for my high school paper, and I was
writing editorials. This sounds silly now that I think about it, but I
had written an editorial against the drill team that we had for the high
school games, for the football games. This was '71 or '72, at the height
of the protests against the Vietnam War, and I was in school then in
suburban Indianapolis -- Dan Quayle country. So, you get the idea of the
flavor of the school system. They thought it was a cool idea to dress
women up in military uniforms and send them out there to twirl rifles
and battle flags at halftime. And I thought this was sort of outrageous,
and I wrote an editorial saying I thought it was one of the silliest
things I'd ever seen. And my newspaper advisor called me the next day
and said, "Gosh, that editorial you wrote has really prompted a
response." And I said, "Great, that's the idea, isn't it?" And she said,
"Well, it's not so great, they want you to apologize for it." [Laughter
from the audience.]

I said, "Apologize for what?" And she said, "Well, the girls were very
offended." And I said, "Well, I'm not apologizing because they don't
want my opinion. You'll have to come up with a better reason than that."
And they said, "Well, if you don't apologize, we're not going to let you
in Quill & Scroll," which is the high school journalism society. And I
said, "Well, I don't want to be in that organization if I have to
apologize to get into it." [More laughter from the audience, scattered
applause.]

They were sort of powerless at that point, and they said, "Look, why
don't you just come down and the cheerleaders are going to come in, and
they want to talk to you and tell you what they think," and I said okay.
So I went down to the newspaper office, and there were about fifteen of
them sitting around this table, and they all went around one by one
telling me what a scumbag I was, and what a terrible guy I was, and how
I'd ruined their dates, ruined their complexions, and all sorts of
things... [Laughter and groans from the audience.] ...and at that
moment, I decided, "Man, this is what I want to do for a living." [Roar
of laughter from the audience.] And I wish I could say that it was
because I was infused with this sense of the First Amendment, and
thinking great thoughts about John Peter Zenger and I.F. Stone... but
what I was really thinking was, "Man, this is a great way to meet
women!" [More laughter.]

And that's a true story, but the reason I tell you that is because it's
often those kinds of weird motivations and unthinking consequences that
lead us to do things, that lead us to events that we have absolutely no
concept how they're going to turn out. Little did I know that
twenty-five years later, I'd be writing a story about the CIA's
wrongdoings because I wanted to meet women by writing editorials about
cheerleaders.

But that's really the way life and that's really the way history works a
lot of times. You know, when you think back on your own lives, from the
vantage point of time, you can see it. I mean, think back to the
decisions you've made in your lifetimes that brought you to where you
are tonight, think about how close you came to never meeting your wife
or your husband, how easily you could have been doing something else for
a living if it hadn't been for a decision that you made or someone made
that you had absolutely no control over. And it's really kind of scary
when you think about how capricious life is sometimes. That's a theme I
try to bring to my book, Dark Alliance, which was about the crack
cocaine explosion in the 1980s.

So for the record, let me just say this right now. I do not believe --
and I have never believed -- that the crack cocaine explosion was a
conscious CIA conspiracy, or anybody's conspiracy, to decimate black
America. I've never believed that South Central Los Angeles was targeted
by the U.S. government to become the crack capitol of the world. But
that isn't to say that the CIA's hands or the U.S. government's hands
are clean in this matter. Actually, far from it. After spending three
years of my life looking into this, I am more convinced than ever that
the U.S. government's responsibility for the drug problems in South
Central Los Angeles and other inner cities is greater than I ever wrote
in the newspaper.

But it's important to differentiate between malign intent and gross
negligence. And that's an important distinction, because it's what makes
premeditated murder different from manslaughter. That said, it doesn't
change the fact that you've got a body on the floor, and that's what I
want to talk about tonight, the body.

Many years ago, there was a great series on PBS -- I don't know how many
of you are old enough to remember this -- it was called Connections. And
it was by a British historian named James Burke. If you don't remember
it, it was a marvelous show, very influential on me. And he would take a
seemingly inconsequential event in history, and follow it through the
ages to see what it spawned as a result. The one show I remember the
most clearly was the one he did on how the scarcity of firewood in
thirteenth-century Europe led to the development of the steam engine.
And you would think, "Well, these things aren't connected at all," and
he would show very convincingly that they were.

In the first chapter of the book on which the series is based, Burke
wrote that "History is not, as we are so often led to believe, a matter
of great men and lonely geniuses pointing the way to the future from
their ivory towers. At some point, every member of society is involved
in that process by which innovation and change come about. The key to
why things change is the key to everything."

What I've attempted to demonstrate in my book was how the collapse of a
brutal, pro-American dictatorship in Latin America, combined with a
decision by corrupt CIA agents to raise money for a resistance movement
by any means necessary, led to he formation of the nation's first major
crack market in South Central Los Angeles, which led to the arming and
the empowerment of LA's street gangs, which led to the spread of crack
to black neighborhoods across the country, and to the passage of
racially discriminatory sentencing laws that are locking up thousands of
young black men today behind bars for most of their lives.

But it's not so much a conspiracy as a chain reaction. And that's what
my whole book is about, this chain reaction. So let me explain the links
in this chain a little better.

The first link is this fellow Anastasio Somoza, who was an
American-educated tyrant, one of our buddies naturally, and his family
ruled Nicaragua for forty years -- thanks to the Nicaraguan National
Guard, which we supplied, armed, and funded, because we thought they
were, you know, anti-communists.

Well, in 1979, the people of Nicaragua got tired of living under this
dictatorship, and they rose up and overthrew it. And a lot of Somoza's
friends and relatives and business partners came to the United States,
because we had been their allies all these years, including two men
whose families had been very close to the dictatorship. And these two
guys are sort of two of the three main characters in my book -- a fellow
named Danilo Bland�n, and a fellow named Norwin Meneses.

They came to the United States in 1979, along with a flood of other
Nicaraguan immigrants, most of them middle-class people, most of them
former bankers, former insurance salesmen -- sort of a capitalist exodus
from Nicaragua. And they got involved when they got here, and they
decided they were going to take the country back, they didn't like the
fact that they'd been forced out of their country. So they formed these
resistance organizations here in the United States, and they began
plotting how they were going to kick the Sandanistas out.

At this point in time, Jimmy Carter was president, and Carter wasn't all
that interested in helping these folks out. The CIA was, however. And
that's where we start getting into this murky world of, you know, who
really runs the United States. Is it the president? Is it the
bureaucracy? Is it the intelligence community? At different points in
time you get different answers. Like today, the idea that Clinton runs
the United States is nuts. The idea that Jimmy Carter ran the country is
nuts.

In 1979 and 1980, the CIA secretly began visiting these groups that were
setting up here in the United States, supplying them with a little bit
of money, and telling them to hold on, wait for a little while, don't
give up. And Ronald Reagan came to town. And Reagan had a very different
outlook on Central America than Carter did. Reagan saw what happened in
Nicaragua not as a populist uprising, as most of the rest of the world
did. He saw it as this band of communists down there, there was going to
be another Fidel Castro, and he was going to have another Cuba in his
backyard. Which fit in very well with the CIA's thinking. So, the CIA
under Reagan got it together, and they said, "We're going to help these
guys out." They authorized $19 million to fund a covert war to
destabilize the government in Nicaragua and help get their old buddies
back in power.

Soon after the CIA took over this operation, these two drug traffickers,
who had come from Nicaragua and settled in California, were called down
to Honduras. And they met with a CIA agent named Enrique Berm�dez, who
was one of Somoza's military officials, and the man the CIA picked to
run this new organization they were forming. And both traffickers had
said -- one of them said, the other one wrote, and it's never been
contradicted -- that when they met with the CIA agent, he told them, "We
need money for this operation. Your guy's job is to go to California and
raise money, and not to worry about how you did it. And what he said was
-- and I think this had been used to justify just about every crime
against humanity that we've known -- "the ends justify the means."
Now, this is a very important link in this chain reaction, because the
means they selected was cocaine trafficking, which is sort of what you'd
expect when you ask cocaine traffickers to go out and raise money for
you. You shouldn't at all be surprised when they go out and sell drugs.
Especially when you pick people who are like pioneers of the cocaine
trafficking business, which Norwin Meneses certainly was.

There was a CIA cable from I believe 1984, which called him the "kingpin
of narcotics trafficking" in Central America. He was sort of like the Al
Capone of Nicaragua. So after getting these fundraising instructions
from this CIA agent, these two men go back to California, and they begin
selling cocaine. This time not exclusively for themselves -- this time
in furtherance of U.S. foreign policy. And they began selling it in Los
Angeles, and they began selling it in San Francisco.

Sometime in 1982, Danilo Bland�n, who had been given the LA market,
started selling his cocaine to a young drug dealer named Ricky Ross, who
later became known as "Freeway" Rick. In 1994, the LA Times would
describe him as the master marketer most responsible for flooding the
streets of Los Angeles with cocaine. In 1979, he was nothing. He was
nothing before he met these Nicaraguans. He was a high school dropout.
He was a kid who wanted to be a tennis star, who was trying to get a
tennis scholarship, but he found out that in order to get a scholarship
you needed to read and write, and he couldn't. So he drifted out of
school and wound up selling stolen car parts, and then he met these
Nicaraguans, who had this cheap cocaine that they wanted to unload. And
he proved to be very good at that.

Now, he lived in South Central Los Angeles, which was home to some
street gangs known as the Crips and the Bloods. And back in 1981-82,
hardly anybody knew who they were. They were mainly neighborhood kids --
they'd beat each other up, they'd steal leather coats, they'd steal
cars, but they were really nothing back then. But what they gained
through this organization, and what they gained through Ricky Ross, was
a built-in distribution network throughout the neighborhood. The Crips
and the Bloods were already selling marijuana, they were already selling
PCP, so it wasn't much of a stretch for them to sell something new,
which is what these Nicaraguans were bringing in, which was cocaine.
This is where these forces of history come out of nowhere and collide.

Right about the time the contras got to South Central Los Angeles,
hooked up with "Freeway" Rick, and started selling powder cocaine, the
people Rick was selling his powder to started asking him if he knew how
to make it into this stuff called "rock" that they were hearing about.
This obviously was crack cocaine, and it was already on its way to the
United States by then -- it started in Peru in '74 and was working its
way upward, and it was bound to get here sooner or later. In 1981 it got
to Los Angeles, and people started figuring out how to take this very
expensive powdered cocaine and cook it up on the stove and turn it into
stuff you could smoke.

When Ricky went out and he started talking to his customers, and they
started asking him how to make this stuff, you know, Rick was a smart
guy -- he still is a smart guy -- and he figured, this is something new.

This is customer demand. If I want to progress in this business, I
better meet this demand. So he started switching from selling powder to
making rock himself, and selling it already made. He called this new
invention his "Ready Rock." And he told me the scenario, he said it was
a situation where he'd go to a guy's house, he would say, "Oh man, I
want to get high, I'm on my way to work, I don't have time to go into
the kitchen and cook this stuff up. Can't you cook it up for me and just
bring it to me already made?" And he said, "Yeah, I can do that." So he
started doing it.

So by the time crack got ahold of South Central, which took a couple of
years, Rick had positioned himself on top of the crack market in South
Central. And by 1984, crack sales had supplanted marijuana and PCP sales
as sources of income for the gangs and drug dealers of South Central.

And suddenly these guys had more money than they knew what to do with.
Because what happened with crack, it democratized the drug. When you
were buying it in powdered form, you were having to lay out a hundred
bucks for a gram, or a hundred and fifty bucks for a gram. Now all you
needed was ten bucks, or five bucks, or a dollar -- they were selling
"dollar rocks" at one point. So anybody who had money and wanted to get
high could get some of this stuff. You didn't need to be a middle-class
or wealthy drug user anymore.

Suddenly the market for this very expensive drug expanded geometrically.
And now these dealers, who were making a hundred bucks a day on a good
day, were now making five or six thousand dollars a day on a good day.

And the gangs started setting up franchises -- they started franchising
rock houses in South Central, just like McDonald's. And you'd go on the
streets, and there'd be five or six rock houses owned by one guy, and
five or six rock houses owned by another guy, and suddenly they started
making even more money.

And now they've got all this money, and they felt nervous. You get
$100,000 or $200,000 in cash in your house, and you start getting kind
of antsy about it. So now they wanted weapons to guard their money with,
and to guard their rock houses, which other people were starting to
knock off. And lo and behold, you had weapons. The contras. They were
selling weapons. They were buying weapons. And they started selling
weapons to the gangs in Los Angeles. They started selling them AR-15s,
they started selling them Uzis, they started selling them Israeli-made
pistols with laser sights, just about anything. Because that was part of
the process here. They were not just drug dealers, they were taking the
drug money and buying weapons with it to send down to Central America
with the assistance of a great number of spooky CIA folks, who were
getting them [audio glitch -- "across the border"?] and that sort of
thing, so they could get weapons in and out of the country. So, not only
does South Central suddenly have a drug problem, they have a weapons
problem that they never had before. And you started seeing things like
drive-by shootings and gang bangers with Uzis.

By 1985, the LA crack market had become saturated. There was so much
dope going into South Central, dope that the CIA, we now know, knew of,
and they knew the origins of -- the FBI knew the origins of it; the DEA
knew the origins of it; and nobody did anything about it. (We'll get
into that in a bit.)

But what happened was, there were so many people selling crack that the
dealers were jostling each other on the corners. And the smaller ones
decided, we're going to take this show on the road. So they started
going to other cities. They started going to Bakersfield, they started
going to Fresno, they started going to San Francisco and Oakland, where
they didn't have crack markets, and nobody knew what this stuff was, and
they had wide open markets for themselves. And suddenly crack started
showing up in city after city after city, and oftentimes it was Crips
and Bloods from Los Angeles who were starting these markets. By 1986, it
was all up and down the east coast, and by 1989, it was nationwide.
Today, fortunately, crack use is on a downward trend, but that's
something that isn't due to any great progress we've made in the
so-called "War on Drugs," it's the natural cycle of things. Drug
epidemics generally run from 10 to 15 years. Heroin is now the latest
drug on the upswing.

Now, a lot of people disagreed with this scenario. The New York Times,
the LA Times and the Washington Post all came out and said, oh, no,
that's not so. They said this couldn't have happened that way, because
crack would have happened anyway. Which is true, somewhat. As I pointed
out in the first chapter of my book, crack was on its way here. But
whether it would have happened the same way, whether it would have
happened in South Central, whether it would have happened in Los Angeles
at all first, is a very different story. If it had happened in Eugene,
Oregon first, it might not have gone anywhere. [Restless shuffling and
the sounds of throats being cleared among the audience.] No offense, but
you folks aren't exactly trend setters up here when it comes to drug
dealers and drug fads. LA is, however. [Soft laughter and murmuring
among the audience.]

You can play "what if" games all you like, but it doesn't change the
reality. And the reality is that this CIA-connected drug ring played a
very critical role in the early 1980s in opening up South Central to a
crack epidemic that was unmatched in its severity and influence anywhere
in the U.S.

One question that I ask people who say, "Oh, I don't believe this," is,
okay, tell me this: why did crack appear in black neighborhoods first?
Why did crack distribution networks leapfrog from one black neighborhood
to other black neighborhoods and bypass white neighborhoods and bypass
Hispanic neighborhoods and Asian neighborhoods? Our government and the
mainstream media have given us varying explanations for this phenomenon
over the years, and they are nice, comforting, general explanations
which absolve anyone of any responsibility for why crack is so
ethnically specific. One of the reasons we're told is that, well, it's
poverty. As if the only poor neighborhoods in this country were black
neighborhoods. And we're told it's high teenage unemployment; these kids
gotta have jobs. As if the hills and hollows of Appalachia don't have
teenage unemployment rates that are ten times higher than inner city Los
Angeles. And then we're told that it's loose family structure -- you
know, presuming that there are no white single mothers out there trying
to raise kids on low-paying jobs or welfare and food stamps. And then
we're told, well, it's because crack is so cheap -- because it sells for
a lower price in South Central than it sells anywhere else. But twenty
bucks is twenty bucks, no matter where you go in the country.

So once you have eliminated these sort of non-sensical explanations, you
are left with two theories which are far less comfortable. The first
theory -- which is not something I personally subscribe to, but it's out
there -- is that there's something about black neighborhoods which
causes them to be genetically predisposed to drug trafficking. That's a
racist argument that no one in their right mind is advancing publicly,
although I tell you, when I was reading a lot of the stories in the
Washington Post and the New York Times, they were talking about black
Americans being more susceptible to "conspiracy theories" than white
Americans, which is why they believe the story more. I think that was
sort of the underlying current there. On the other hand, I didn't see
any stories about all the white people who think Elvis is alive still,
or that Hitler's brain is preserved down in Brazil to await the Fourth
Reich... [laughter from the audience] ...which is a particularly white
conspiracy theory, I didn't see any stories in the New York Times about
that...

The other more palatable reason which in my mind comes closer to the
truth, is that someone started bringing cheap cocaine into black
neighborhoods right at the time when drug users began figuring out how
to turn it into crack. And this allowed black drug dealers to get a head
start on every other ethnic group in terms of setting up distribution
systems and trafficking systems.

� ParaScope, Inc. 1999
--[cont]--
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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