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Agency of Fear

Opiates and Political Power in America

By Edward Jay Epstein

Chapter 27 - Dangerous Liaisons





 The White House finally succeeded in 1972 in creating a private police force
in the form of the Office of Drug Abuse Law Enforcement. The office reported
directly to the president through its head, Myles Ambrose, who simultaneously
served as special consultant to the president. ODALE bypassed most of the
traditional bureaucratic restraints on its operations: nevertheless, the plan
to utilize the intelligence assets of the Central Intelligence Agency was
stymied by the opposition of career officials at the Department of Justice
CIA. This, however, was only a temporary setback. The struggle at the FBI to
succeed J. Edgar Hoover provided the House strategists with an opportunity to
take over at least part domestic-intelligence operation at the FBI by playing
on the ambitions of its associate director, William C. Sullivan.

During the Johnson administration Sullivan had designed the FBI's
counterintelligence program, which among other things harassed Martin Luther
King and civil rights organizations and which gave the Nixon White House some
leverage over him. In the early years of the Nixon administration he realized
that his rise to Power in the FBI was being blocked by Cartha "Deke" DeLoach,
who was third in command at the FBI. In light of this opposition Sullivan
could succeed Hoover only if he was the personal candidate of President
Nixon, he thus went to great lengths, according to his associates in the FBI,
"to play ball with the White House." He worked with John Dean on drafting the
ill-fated Huston Plan, even though Hoover and the FBI executives opposed it.
And when the White House wanted to wiretap members of the National Security
Council staff and journalists, Sullivan arranged for the FBI to undertake
these "national security" tasks for the president. The procedures for the FBI
required that such White House requests be routed through the office of Deke
DeLoach and Inspector George Quinn, but Sullivan arranged it so that the
White House requests would be processed personally by him, and both DeLoach
and Quinn would not have direct knowledge of the very unorthodox wiretap
operations requested by the White House. DeLoach feared that this arrangement
would effectively give the White House control over Sullivan's
domestic-intelligence division and demanded that Sullivan return to the more
normal procedures of the bureau. Sullivan, who was now working closely with
such White House strategists as John Dean, then an assistant to Attorney
General Mitchell, and Robert Mardian, the head of the Department of Justice's
internal-security division, managed to get Henry Kissinger and Alexander Haig
to intervene directly and write mernoranda which supported the special
arrangement between Sullivan's division and the White House. In the wake of
these memoranda Hoover acquiesced and permitted Sullivan to limit the access
to the transcripts and authorizations of wiretaps to a few highly placed
officials in the domestic-intelligence division, which excluded DeLoach.

In effect, then, Mardian, Dean, and Sullivan controlled a bureau within a
bureau which could install "national security" wiretaps for the president.
When the White House strategists feared that Hoover might attempt to use the
transcripts of these wiretaps to blackmail the White House, Mardian arranged
through Sullivan to transfer them from the FBI to John Ehrlichman's safe in
the White House. When Hoover found out about this maneuver, he locked
Sullivan out of the office (by having his locks changed while he was on
vacation). Realizing that his days with the FBI were numbered, and believing
that the present administration of the FBI had become inefficient, if not
corrupt, Sullivan pressed Dean and Mardian to create another
domestic-intelligence unit. Dean fully realized that the White House could
use this ambition of Sullivan's for its own purpose. He later explained to
the president, "What Bill Sullivan's desire in life is, is to set up a
domestic national security intelligence system, a White House program. He
says we are deficient. He says we have never been efficient, because Hoover
lost his guts several years ago." The problem was simply to find a cover
under which such a White House intelligence system could be created for
Sullivan. The war on heroin conveniently served this purpose.

The idea of creating a small intelligence unit as part of the White House's
narcotics program was first suggested by Egil Krogh in the summer of 1971.
Krogh explained to his staff assistants working on the narcotics problem at
the Domestic Council that the only organization in the government capable of
"tracking the narcotics traffickers" was the CIA, but that agency was
reluctant to become involved in a law-enforcement problem. Walter Minnick, a
young Harvard Business School graduate who had joined Krogh's staff only two
months before, recalled that Krogh complained to him that the CIA was the
most "bureaucratically closed" organization in the government, and that in
order to cut the "red tape," Krogh instructed him to speak to E. Howard Hunt.
(Minnick did not know at that time that Hunt was also working in room 16 as
one of the Plumbers in the special-investigations unit.) Krogh's young staff
assistant soon found Hunt to be extremely well informed not only about the
narcotics trade in Southeast Asia but also about the bureaucratic politics of
the CIA. Hunt authoritatively told Minnick that it would be next to
impossible "to crank CIA intelligence" into other federal agencies, since CIA
employees would be extremely wary about trusting their counterparts at BNDD
or at Customs. Instead Hunt recommended establishing a new unit, under tight
White House control, which could serve as a liaison between all the
law-enforcement agencies involved in suppressing narcotics. He said that he
knew key CIA officers who could be temporarily detached from the agency and
employed in this new liaison group. Krogh subsequently explained that Hunt
had "counseled me in 1971 as to specifically how we should build into the CIA
operations narcotics control as an important priority; and he described the
priority list which [CIA] station chiefs maintained for their own agent
activity. . . ." According to Krogh, Hunt further convinced him that unless
he was able "to communicate directly with [CIA] station chiefs and have that
backed up at their regional level in the CIA that, while they may say that
they are cooperating, in fact [we] would not get much work on the problem at
that regional level."

Specifically, Hunt suggested Colonel Lucien Conein, a personal friend of his
who had served with the CIA since 1954, as a possible director for the
proposed White House intelligence office. It was subsequently decided,
however, that Conein would be more useful in the strategic-intelligence
office of the BNDD, where he would be in a position to keep an eye on
Ingersoll's activities (and there he could supervise the plans approved by
the President for clandestine law enforcement abroad, which possibly would
include assassination). Since Conein was unavailable to head the new office,
Walter Minnick proposed James Ludlurn, who had been a CIA official
responsible for collecting intelligence on the international heroin trade.
Krogh approved this choice because, as he told me years later, "After they
had assigned Jim Ludlum to be the liaison in narcotics control, the CIA
cooperation increased terrifically ... and he was a very helpful person." The
White House, however, had other plans for this new Office of National
Narcotics Intelligence (ONNI). To Minnick's dismay, Ehrlichman ordered him to
offer the new position to Sullivan, who promptly accepted it. Krogh later
explained to Minnick that this was done in return for Sullivan's cooperation
in doing "previous favors for the White House." Although the implementation
of ONNI was delayed until August, 1972, by the protests of Ingersoll and
Kleindienst-and finally had to be located 'in the Department of Justice
rather than in the White House, to at least partly satisfy the strong
objections-Sullivan had finally gained control of the domestic intelligence
system, which John Dean presumed to be his "life's desire."

Sullivan Immediately chose Russell Asch, a deputy of the National Secunity
Council with contacts in the intelligence community, as his deputy. He also
appointed liaisons with the CIA, the FBI, the Defense Intelligence Agency,
and a host of the lesser-known intelligence agencies scattered throughout the
government. In all, twenty-four liaisons were appointed to assist Sullivan in
his intelligence coordination. The CIA agents reassigned to this new office
could not entirely resist the temptation of resorting to the sort of fun and
games which they practiced in the CIA. For example, one former analyst at the
Office of National Narcotics Intelligence recalled that some of these former
CIA agents began working on a plan for disrupting the cocaine market in the
United States "by poisoning it with methedrene" a domestically manufactured
stimulant that could be made to resemble cocaine in color and taste. The
bogus cocaine, according to this plan, would cause violent reactions in the
cocaine users (if they survived) and thereby turn them against the cocaine
dealers. After due consideration, however, the plan for the government to
distribute methedrene surreptitiously in key cities in the United States was
rejected, and eventually all the plans, analyses, and reports of ONNI dealing
with cocaine were shredded and destroyed on White House orders.

The waiting game continued.
-----
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