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The Consortium
�Lost History: Reagan-Bush Crime Syndicate
By Robert Parry
WASHINGTON -- It should be clear by now that for 12 years, from
1981-1993, the United States was governed by political leaders who
merged the power of the state with criminality to a degree possibly
unmatched in modern American history. That disturbing reality was
underscored again this past month by an exhaustively researched series
by Gary Webb in The San Jose Mercury-News.
Webb's three-part series, with supporting documentation, traced the
"crack" epidemic that devastated Los Angeles and other U.S. cities to
massive shipments of cocaine smuggled by elements of the CIA-organized
Nicaraguan contra army in the early-to-mid 1980s. Danilo Blandon Reyes,
a former contra leader and drug dealer, testified during a recent
cocaine trafficking trial in San Diego that the smuggling was given a
green light by the late Enrique Bermudez, who commanded the FDN, the
largest contra force and the one most closely associated with the CIA.
"There is a saying that the ends justify the means," Blandon said. "And
that's what Mr. Bermudez told us in Honduras, OK. So we started raising
money for the contra revolution." Though Blandon was offered as a U.S.
government witness, the Justice Department first obtained a gag order
that blocked defense attorneys from inquiring about the CIA's role in
dealing dope to the Crips and Bloods and other inner-city gangs.
But a wealth of other evidence, collected by federal drug agents and
congressional investigators during the 1980s, corroborated that the
Reagan-Bush administrations knew about the drug trafficking and mounted
a determined cover-up to protect the contras from exposure. Senior
administration officials apparently shared Enrique Bermudez's
situational ethics. After all, President Reagan had hailed the contras
as the "moral equivalent of the Founding Fathers." They could not be
unmasked as drug dealers.
Published stories about contra drug trafficking were also not new. On
Dec. 20, 1985 -- more than a decade ago -- The Associated Press
published a story by Brian Barger and me reporting that all major contra
factions had joined the drug trade. "Nicaraguan rebels operating in
northern Costa Rica have engaged in cocaine trafficking, in part to help
finance their war against Nicaragua's leftist government, according to
U.S. investigators and American volunteers who work with the rebels,"
our AP story read.
It was the first article alleging contra drug trafficking and it was
sharply criticized by both the Reagan-Bush administration and the
conservative media. The contras were already reeling from widespread
charges that they engaged in rape, torture and murder of Nicaraguan
civilians. The day our AP story ran, deputy State Department spokesman
Charles Redman declared, "we are not aware of any evidence to support
those charges" -- a claim Barger and I knew to be untrue. But Redman's
denial was just the start of a cover-up by the "just-say-no" crowd.
Contra Probes

The contra-drug story -- and others we had written about Oliver North's
secret contra supply operation -- did, however, attract the attention of
a young U.S. senator, John Kerry, D-Mass., who instructed his staff to
investigate. A federal prosecutor, Jeffrey Feldman, also was sniffing
around in Miami and Costa Rica. He had uncovered allegations of
gun-running and some hints of drug-trafficking by the contras.
But Feldman's probe drew a watchful eye from senior Justice Department
officials in Washington. On a trip to Miami, Attorney General Edwin
Meese III talked about the investigation with Feldman's boss, U.S.
Attorney Leon Kellner. On April 4, 1986, another Miami prosecutor David
Leiwant said he overheard Kellner saying that Washington had ordered him
to "go slow" on the contra probe, a claim Kellner later denied.
At AP, Barger and I got wind of the federal investigation, too, and
published a story disclosing that the U.S. Attorney's office in Miami
was examining allegations of contra gun-running and drug-trafficking.
The AP article prompted a front-page attack on our work by The
Washington Times, a right-wing newspaper financed by the Rev. Sun Myung
Moon's Unification Church.
But it was not just conservatives giving us trouble. The New York Times
weighed in with an article knocking down our story. A reporter for the
prestigious Times interviewed Meese's spokesman Patrick Korten who
dismissed the contra allegations by claiming that "various bits of
information got referred to us. We ran them all down and didn't find
anything. It comes to nothing."
Despite those public declarations from Washington, Feldman and
Miami-based FBI agents actually were finding a lot. On May 14, 1986,
Feldman recommended to his superiors that the evidence of contra crimes
was strong enough to take the case to a grand jury. Feldman's boss,
Kellner, scribbled on the memo, "I concur that we have sufficient
evidence to ask for a grand jury investigation."
But on May 20, Kellner met with his top aides and reversed the
recommendation. Without telling Feldman, Kellner rewrote the memo to
state that "a grand jury investigation at this point would represent a
fishing expedition with little prospect that it would bear fruit."
Kellner then signed Feldman's name to the memo, again without telling
Feldman, and sent the memo to Washington on June 3. The doctored memo
was then slipped to congressional Republicans who leaked it to the
conservative media and used it to discredit Kerry, who was put under a
Senate Ethics Committee investigation for his troubles. The contra
cover-ups were under way.
Exposure

Even after North's contra supply operations were exposed in October
1986, when one of his planes (which had been used to carry cocaine) was
shot down, the allegations about contra drug trafficking continued
facing Reagan-Bush denunciations and little interest in either Congress
or the media. In July 1987, a spectator interrupted North's Iran-contra
testimony by demanding that someone "ask about the cocaine." But the
only response was a cursory review released by Rep. Lee Hamilton,
D-Ind., which concluded that there was no truth to the contra drug
charges.
Still, stories continued to percolate about contra cocaine trafficking.
I even learned that Vice President Bush's national security aide Donald
Gregg, a former CIA officer, had helped organize a pre-Oliver North
contra-aid network that had included a drug-tainted enterprise called
the Arms Supermarket. In May 1988, when I was working at Newsweek, I
wrote an article that cited government documents and high-level
administration officials confirming that the Arms Supermarket "was
financed at least in part with drug money."
Bush, who had been chief of Reagan's drug task force, was then running
for president and claiming that he had been "out of the loop" on
Iran-contra. So his aides harshly attacked the Newsweek story.
Internally, Newsweek senior editors, who shared a real-politick view of
fighting leftists in the Third World, took Bush's side and throttled any
further investigation of the vice president's unsavory contra drug
connections. The Washington Post, Newsweek's sister publication, didn't
help by joining in the ridicule of the contra drug stories. My Newsweek
career came to an end in 1990.
In the following years, official Washington effectively committed the
contra-drug story to the loony bin of conspiracy theories. Even when
Panama's Manuel Noriega was tried on drug charges in 1991 and witnesses
implicated the contras, too, that evidence drew almost no public
attention. To recognize the contra drug trafficking would mean, of
course, re-examining the role of then-President Bush as well as exposing
the incompetence of the elite Washington news media.
Recently, however, I discovered documents in the National Archives that
shed more light on who was behind the drug-linked contra operations. The
papers were a series of flow charts showing who was responsible for the
secret support of the Nicaraguan contras at different phases. The chart,
unsigned but apparently prepared by a Reagan-Bush insider, described how
Bush and Gregg took the lead in arranging off-the-books support for the
contras after Congress cut off CIA funding in 1984.
A Mystery Market

One chart described "Max Gomez," whose real name was Felix Rodriguez, a
CIA-trained Cuban exile, as the Bush-Gregg man on the ground in Central
America. "Max Gomez" pulled in another former CIA Cuban exile named,
Mario Delamico, who held "a position of authority with Honduran officers
and the FDN [contra] camp," the chart said. Delamico, in turn, set up
the "Arms Warehouse/Supermarket" in Honduras, with a corrupt Honduran
officer, named "Col. Aplicano."
The chart noted that "the 'Arms Warehouse' was started with seed money
of approximately $14 million from the CIA. Later, it was believed that
funds relating to narcotics traffic found its way into the inventory in
the warehouse." Though the chart matched with the earlier suspicions
about Bush's team, the information apparently was never seriously
pursued during the Iran-contra investigations, which wound down in 1993.
When President Bush lost re-election in 1992, whatever scant media
interest in the crimes of that era evaporated. Unlike other countries
which have sought to achieve some accounting for official crimes of the
Cold War, the United States seems determined to forget the past. The
Clinton administration and congressional Democrats, such as Lee
Hamilton, have joined in whitewashing other evidence that Reagan and
Bush had presided over an era of extraordinary criminality.
For instance, Clinton prosecutors ignored credible evidence -- including
a sworn affidavit from Reagan national security aide Howard Teicher --
so they could reject allegations that the Republicans had helped arm
Iraq's Saddam Hussein in the 1980s. For his part, Hamilton hid
documentary evidence that Reagan's 1980 campaign had colluded with
Iranian terrorists to stymie President Carter's efforts to free 52
American hostages. (See The October Surprise X-Files: The Hidden Origins
of the Reagan-Bush Era.)
Other Crimes

There has been no serious follow-up on a host of other Reagan-Bush
crimes either: the support for Central American death squads; the
cover-up of the 1981 El Mozote massacre in El Salvador; collaboration
with Noriega; protection for the heroin trade of another CIA-backed
group, the Afghan mujahadeen; Ferdinand Marcos's alleged
multi-million-dollar pay-offs to Ronald Reagan; the BCCI affair; the
savings-and-loan plundering and a hundred other economic rip-offs that
enriched the few and left the nation trillions of dollars in debt.
So it was not entirely surprising that Gary Webb's remarkable story
about contras and crack caused not a ripple of official reaction. The
disclosures were not even mentioned in the nation's two leading papers,
The New York Times and The Washington Post. After all, since both
prestige papers had blown the story in the 1980s, they weren't eager to
admit their screw-up now.
Apparently confident that the Republican crimes will continue to go
unchallenged, GOP presidential candidate Bob Dole (who played a
prominent role in the Iran-contra cover-up) even had the audacity to
attack Clinton on the rise in drug use among teen-agers. Going still
further, Dole pledged that as president, he would involve the CIA in the
war on drugs.
Still, the elite of Washington seem content to turn a blind eye on the
dark history of the 1980s. Presumably, the sanitized history is safer
for the careers of those -- Republican, Democrat, journalist and
bureaucrats -- who protected a criminal enterprise at the very heart of
national power.
Copyright (c) 1996
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from:
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The Consortium Archive

Lost History Series

Lost History: Death, Lies and Bodywashing -- A small granite marker in
Arlington National Cemetery honors the 21 American soldiers who fought
and died in El Salvador's civil war, but their story remains a secret to
the American people. (5-27-96)

Lost History: The Devil & Bob Gates -- Ex-CIA Director Bob Gates's
memoirs, "From the Shadows," reveals an eerie mix of startling
admissions blended with dubious history and self-serving explanations to
provide proof of our lost history. (6-10-96)

Lost History: October Surprise Arises -- The October Surprise has been
brought before the Supreme Court in a libel suit. Former national
security adviser Robert McFarlane has brought suit against Esquire
 magazine for a 1991 story linking McFarlane to both the alleged 1980
hostage dirty trick and to the Jonathan Pollard spy case. (6-24-96)

Lost History: Pierre Salinger & 1980 Taboo -- The censorship of fomer
ABC News' Paris bureau chief Pierre Salinger's memoirs, P.S., which
expunged his October Surprise conclusion, is another case of the history
of the 1980 American Presidential election is Lost History. (7-8-96)

Lost History: Newsweek's Convenient Lies -- When Newsweek columnist Joe
Klein lied about his authorship of a novel and editor Maynard Parker
published falsehoods in Newsweek to protect Klein's money-making secret,
the magazine's 'standards of truth' responsible for hounding Adm. Jeremy
Boorda over his right to wear a pin were suddenly less inviolable.
(8-19-96)

Lost History: Marcos, Money & Treason -- In a stunning disclosure, Ed
Rollins, Ronald Reagan's former campaign manager, writes that Philippine
despot Ferdinand Marcos sent $10 Million in cash to Reagan's 1984
campaign. (9-2-96)

Lost History: Reagan-Bush Crime Syndicate -- A decade ago, press reports
disclosed that the Nicaraguan contra rebels were trafficking in cocaine
to buy guns. But instead of going after the contras, the White House
went after the story and the government investigators who tried to
follow it up. (9-16-96)

Lost History: Wall Street Journal's 'Big Lies' -- The Wall Street
Journal's editorial page, edited by Robert Bartley, stoops to some of
the worst media abuses. Evidence is fabricated. Good people are smeared.
Case in point: WSJ vs. Gary Sick. (9-30-96)

Lost History: 'Project X' & Assassins School -- The Pentagon now admits
that the School of the Americas used manuals that advocated torture,
murder and coercion for political ends. (10-14-96)

Lost History: Arafat Reveals 'October Surprise' Bid -- Arafat informed
President Carter that the Republicans approached him in 1980 over
October Surprise. (10-28-96)

Lost History: Dole Nearly Cited in Iran-Contra Report -- While in the
Senate, Dole fought to hinder Lawrence Walsh's Iran-contra investigation
and then urged President Bush to pardon Casper Weinberger in the last
month of the Bush Presidency. (11/11/96)

Lost History: CIA's Perception Management -- How the CIA practiced
"Perception Management" on the American people during the '80s.
(12/9/96)

Lost History: The CIA's Fugitive Terrorist -- Luis Posada, a CIA-trained
Cuban exile, hooked up with Oliver North's secret Nicaraguan contra
supply operation in 1986. Before that Posada was a known international
terrorist accused of bombing a civilian airliner that was headed for
Havana. (1/6/97)

Lost History: CIA-Contra Plan-Kill Cubans -- Duane Clarridge
acknowledges in a new book that an original goal of the contra operation
was to "start killing Cubans." (1/20/97)

Lost History: The CIA Protects the Iran-Contra Cover-up (1/20/97)

Lost History: Ollie's 'Enemies' & the FBI -- When Oliver North was at
the height of his power, he tried to muscle his 'enemies' by enlisting
the FBI and other federal agencies to investigate them. Newly released
Iran-contra documents show that North saw the FBI as a possible weapon
even to use against troublesome journalists. (2/3/97)

Lost History: Contras, Dirty Money & CIA -- When Ronald Reagan wanted to
get guns and money to the Nicaraguan contras, his men often turned to
the shadowy world of money-laundering. Newly discovered documents show a
well-worn trail that leads from Panama's law offices to Swiss banks,
from dirty money on the streets of American cities to the brutal murder
of a principal contra financier. (2/17/97)

Lost History: Contras, Dirty $ & CIA (Part 2) -- A mysterious
Cuban-American banker lined up millions of dollars in guns for the
Nicaraguan contras. But the money came from shadowy Panamanian banks and
brought suspicion that the CIA was arranging laundered drug profits.
(3/3/97)

Lost History: Project X, Drugs & Death Squads -- New disclosures about
secret 'Project X' training manuals and the CIA's purge of criminals
from its payrolls have corroborated many of the decades-old criticism of
U.S. national security. But the news is slipping back into a media black
hole. (3/31/97)

Lost History: GOP & KAL-007: 'Key Is to Lie First' -- Republican leaders
say they want the "whole truth" about the Clinton scandals. But the
GOP's history is strewn with 50 years of Cold War situational lying,
like the doctored intercepts used as propaganda after the Korean Air
Lines disaster in 1983. (5/18/98)

India, the CIA & the Bomb -- CIA's botched Indian analysis is drawing
criticism, but the root of the failure is found in President Reagan's
'politicization' and President Clinton's failure to correct the problem.
June 9, 1998

Two Indonesias, Two Americas -- The turmoil in Indonesia has brought to
the fore secret military relations between Washington and Jakarta that
date back to the 1960s. Then, President Sukarno was ousted by Gen.
Suharto amid a bloody rampage that killed up to one million people. The
U.S. hand always hid behind a cloak of national security, one dark
chapter in a troubling history of counterinsurgency. June 9, 1998

Uncle Sam's Favorite Terrorists -- New evidence suggests that in the
past year, U.S. soil again has served as a base for anti-Castro
terrorism. The attacks confront President Clinton with a choice between
law and politics. June 24, 1998

Secret Service Privilege: The Bush File -- Kenneth Starr has obliterated
the Secret Service's claim of a special 'protective privilege.' But
Starr's old boss, George Bush, benefitted from that privilege when his
bodyguards concealed records from October Surprise investigators in
1992. July 23, 1998

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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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