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Homeland Insecurity by Douglas Valentine



Part Three



Chaos And Political Terrorism In America



The similarities between the Phoenix Program and the OHS are obvious, and
with its computerized database of terrorist suspects, Phoenix is certainly
the organizational model for an OHS-style counter-terror program based on
"intelligence coordination and exploitation." 3

But as everyone is aware, the threat of radical Islamic terrorism is not
comparable to the insurgency in Vietnam. In that case America rushed to
defend a hapless ally, thousands of miles away, much as we did in Kuwait. In
the present situation, the OHS has been created to defend us from terrorists
on our own turf. Its counter-terror function is equivalent to that of
providing internal security, in so far as the Bush Administration defines
"internal security" in political terms.

Historically, and ironically, the U.S. Government considered Native Americans
as our homeland's first domestic terrorists, and various methods were devised
to deal with the threat, such as the distribution of blankets infected with
smallpox.

Abolitionists, whether peaceful or violent like John Brown, also were
regarded as terrorists, and for decades the reactionary right wing of
American civilization, and its unreconstructed representatives in the
government (many of whom still hold office), regarded the Ku Klux Klan as a
legitimate means of countering the terror of Emancipation. Indeed, until
today, the reactionary right wing still considers a "genuine" American to be
an active proponent of this ideology, with its repulsive mix of racial
purity, patriotism, and Christian fundamentalism, with its divine savior
nailed to the cross, a symbol of the spiritual terror that enabled our
Founding Fathers to rationalize slavery in the land of free and the home of
brave.

Segregation persisted as unstated policy, and by the late 19th Century,
organized labor had emerged as our homeland's new breed of domestic political
terrorists; and after private police forces proved ineffective in eliminating
the unions, the U.S. Government created the FBI to nullify the threat labor
posed to its Robber Baron patrons. The FBI quickly established that
foreigners (mostly Jews, Bolsheviks and immigrants with no rightful claim to
America as their "homeland") were controlling the labor movement. Over the
years Communists replaced Bolshevists, and eventually Civil Rights and
Anti-War activists were added to the hit list of domestic terrorists--all of
which brings us the FBI's notorious Counter Intelligence Program.

Created in the late 1950s, COINTELPRO was designed to neutralize "radical"
political movements inside the U.S. In its attempt to provide decent
Americans with "internal security," the FBI employed agent provocateurs,
conducted burglaries, engaged in black propaganda (disinformation), fraud,
and perhaps in the case of Dr. Martin Luther King, Jr., and several other
black leaders, outright assassination. 4

But COINTELPRO failed to neutralize America's Anti-War and Civil Rights
insurgency, and by 1967, President Johnson and the FBI were sensing the
presence of foreign intelligence agencies. And the mere fear that the KGB was
directing the Anti-War and Civil Rights movements provided the FBI with the
pretext to enlist the CIA in domestic intelligence operations. The
precipitating event was a February 1967 expose in Ramparts magazine, which
revealed that the CIA had suborned the leadership of the National Student
Association. The exposure of this illegal CIA domestic activity prompted even
moderate students to join and support radical, alternative organizations like
the Students for a Democratic Society. The Anti-War movement blossomed like
never before.

The Ramparts revelation, and the resulting surge in anti-establishment
activities, was deemed to be a Soviet provocation, and confirmed the FBI's
suspicions that foreign agitators were fueling the Anti-War and Civil Rights
movements, so Johnson ordered the CIA to investigate Robert Scheer, the
author of the Ramparts article. Director of Central Intelligence Richard
Helms gave the job to veteran CIA officer Richard Ober, a Harvard graduate
(1943), World War II veteran, and member of the CIA's counter-intelligence
staff. And thus came Operation Chaos--which, with its counterpart
organizations in the Justice Department and White House, enabled the CIA and
political ideologues to get involved in "internal security" operations such
as will be conducted by the OHS. 5

Ober's Counter-Intelligence, Special Operations Group (CI/SOG), codenamed
MHCHAOS, was created in August 1967, concurrent with the Phoenix Program (and
for a similar purpose), and existed until March 1974. Its initial mission,
ostensibly on behalf of the FBI, was to collect intelligence information on
radical domestic political groups, to discover if they were being manipulated
by foreign intelligence agencies.

To coordinate Chaos and COINTELPRO operations, Johnson's attorney general,
Ramsay Clark, created the Interdepartmental Intelligence Unit (IDIU) within
the Justice Department's Internal Security Division. Ober became the CIA's
representative on the IDIU, which (like the OHS) was managed by senior
members from the White House staff. In other words, from its inception, CIA
intelligence information on dissidents was reported to people whose primary
interest was in politics, not internal security.

Upon assuming office in January 1969, President Nixon immediately grasped the
partisan political potential of the IDIU, which he moved under the Civil
Rights Division. In June 1969, through his advisor on Domestic Affairs, John
Dean--and Dean's youthful assistant, Tom Huston--Nixon directed Ober to
engage Chaos in covert actions against dissidents. Ober was assigned a deputy
and a case officer whose names remain secret until today. The deputy and the
case officer moved into Ober's suite of offices in a vault in the basement at
CIA headquarters in Langley, Virginia. Among the rooms was a library where
files were kept and where slides of suspects and potential recruits were
viewed. Several female CIA officers managed the precious, super secret Chaos
files.

Central to Chaos was its super-secrecy. Assignment to CI/SOG was considered a
"command performance," and security was commensurate with the responsibility.
Ober, at the direction of his immediate supervisor, Counter-Intelligence
Chief James Angleton, devised a communications system exclusively for Chaos
cables and couriers to overseas stations. These "back-channels" by-passed the
geographical division chiefs and reached right into the stations, to trusted
counter-intelligence officers. In some cases Chaos by-passed the station
chiefs, and corresponded directly with its unilateral assets and
representatives in a country. Chaos "traffic" carried the highest security
classification, was restricted only to those involved in the operation (as
were Chaos files), and was inaccessible even to the CIA's top administrators,
often for their own protection.

Based on names provided by the FBI (and the CIA's Offices of Security,
Domestic Contacts, Foreign Resources, and Domestic Operations 6 ) the Chaos
case officer in October 1969 began recruiting double agents from within the
Black Power and Anti-War movements. The case officer approached only those
people with "radical" credentials. Only those who proved trustworthy (some
were polygraphed, others given psychological assessments) were recruited.
Recruits were given a training course in the clandestine arts, supplied with
the proper technical equipment and sufficient funds, sheep-dipped (meaning
their records were falsified), and then sent overseas. The case officer
referred to his 40-50 double agents as "dangles," because their job was to
operate as a dissident normally would, and hope that a foreign intelligence
agent would make an approach.

With the approval of Nixon's National Security Advisor, Henry Kissinger, the
Pentagon joined in the counter-terror effort through a secret committee
formed under the aforementioned Tom Huston, and began leveling requirements
on the Chaos unit. The Pentagon was intent on tracking deserters, and
gathering information on foreign nationals who were attempting to persuade
American soldiers to desert from military bases in Germany. Chaos dangles
were sent to North Vietnam, North Africa and Cuba, and one Chaos agent,
possibly Timothy Leary, was launched against Eldridge Cleaver in Algeria.

Here it is important to remember that Bush has granted the CIA unprecedented
freedom to coordinate with law enforcement and military officials, through
the OHS. Previous restrictions on CIA domestic operations have been waived.
As Bob Woodward reported in the 21 October Washington Post, CIA covert action
is now a key element in defending America from terrorist attacks. Every day
the CIA provides the Bush Administration's top national security and
intelligence officials--including OHS Director Tom Ridge--with current
intelligence on possible bombings, hijackings or poisonings within the U.S.
But other than the anthrax outbreak, which appears to be the work of the
radical right, none of the threats has materialized, and there is no way of
knowing if, as the CIA is wont to do, the anthrax outbreak has been
manufactured for purely political and psychological warfare reasons.

It also is likely that the CIA, on behalf of the OHS, will start sprinkling
Chaos-type dangles overseas, and within the United States, to tempt
terrorists into exposing themselves. It is a chilling prospect, but these
dangles may exist only on paper, with the sole purpose of contriving reasons
to launch counter-terror operations against opponents of Bush Administration
policy. Hundreds of businesses and institutions across the country have
already been placed on the CIA's watch list. According to Woodward, one Bush
official said that merely being on the list "could destroy the livelihood of
all those organizations without a bomb being thrown or a spore of anthrax
being released."

Loss of livelihood is perhaps the heaviest psychological hammer a security
agency can hold over a middle class American's head. But that's what it's
come down to.

You Don't Need A Weatherman

Incidental to their role as dangles designed to entrap foreign agents, Chaos
agents reported on U.S. citizens. A folder, or hard file, was created for
each suspected dissident the CIA targeted. The folder contained the
dissident's 201 "personality" file, as well as Situation Reports about his or
her radical activities. The 201 file included every scrap of biographical
information about the person, from arrest records to report cards to
surreptitious photos taken of the person with other suspects. Some 7-10,000
hard files were eventually assembled.

In May 1970, Chaos chief Richard Ober starting entering the information from
his index cards and hard files onto IBM cards, and compiling them in a data
base codenamed HYDRA, which ultimately contained the names of some 300,000
people. HYDRA was developed at the same time as the Phoenix computer system
in Vietnam. A mail intercept program codenamed HTLINGUAL also was part of the
Chaos operation.

Thirty years later, far more sophisticated databases exist in the United
States, and so much information is already available on every American
citizen, that a computerized, national ID card system isn't required to keep
track of everyone. But the on-going anthrax scare, which may be a CIA
provocation, could serve as the pretext to institute, under the OHS, a mail
intercept program similar to HTLINGUAL. And OHS Director Tom Ridge already
has a deputy, "cyber security expert" Richard Clarke, to monitor and
ultimately censor all politically incorrect Internet information.

As is well known, the paranoid Nixon Administration--whose ideology is
compatible with Bush's--was ruthless in the application of its executive
authority to attack its domestic political "enemies" under the aegis of
national security. To this end, the Nixon Administration formed the IDIU's
secret Intelligence Evaluation Committee in December 1970 under Robert
Mardian, the assistant attorney general in charge of Internal Security.
Mardian reported directly to Nixon's attorney general, John Mitchell. A major
player in Nixon's illegal political and fundraising schemes, Mitchell was
sentenced for his Watergate crimes in February 1975.

Bush's right wing attorney general, John Ashcroft, will be a major player at
OHS, and can be expected to play the same partisan political role for Bush as
Mitchell played for Nixon. Indeed, it is evident from the records of the 1975
Report by the President's Commission on CIA Activities Within the United
States that Chaos agents, at the behest of White House officials, operated
domestically, illegally, and that Chaos operations were directed against
non-violent dissidents, including Daniel Ellsberg, the Berrigan Brothers, Tom
Hayden, and others. Many of these activists had important political
connections, and by association, Left politicians came under Chaos scrutiny.
The coverage was vast, and in order to advance policies he wished to keep
secret from the secretaries of State and Defense, Kissinger kept close track
of the most critical Chaos operations, especially agent operations that might
impact his secret peace negotiations with the North Vietnamese.

One of Chaos' most important agents played a critical though undisclosed role
at the May 1971 anti-war demonstrations in Washington. DC. And at least one
Chaos agent may have been involved in the Watergate scandal that brought down
Nixon.

Yes, by 1971 Ober and the Chaos unit were working for Nixon's secret team of
political dirty tricksters, the infamous Plumbers. Master Plumber G. Gordon
Liddy, a deranged former FBI agent with a penchant for eating live rats,
actually leveled requirements on Ober at the Intelligence Evaluation
Committee. Before Liddy and his partner in crime, CIA officer E. Howard Hunt,
were imprisoned for burglarizing the office of Ellsberg's psychiatrist, they
directed Ober to spy on members of other government agencies, as well as on
Nixon's political and bureaucratic "enemies".

Ober, who died earlier this year, is thought to have reacted negatively to
this ultimate violation of the Constitution, and at least one researcher has
suggested that he may have been Woodward's Deep Throat. But there's never any
guarantee that any CIA officer will ever break ranks, and the threat of
Nixon-style abuses loom large under the OHS and the illegitimate Bush
Administration, with its fascist ideology and unprecedented, dictatorial
emergency powers.

The Shell Game

Incredible power was concentrated in the Chaos office. Ober was the CIA's
liaison to the National Commission on Civil Disorders and to the Ginsburg
Commission on the Causes and Prevention of Violence. He was the CIA's liaison
to the protean Law Enforcement Assistance Administration, and to the Special
Services units (Red Squads) of America's major metropolitan police
departments. He reported directly to DCI Richard Helms (later convicted of
lying to Congress about the CIA's major role in the violent coup that toppled
the elected government of Chile, and resulted in the torture and murder of
thousands of Leftists), and he sat on the Huston Committee, which was chaired
by FBI Counter Intelligence chief William C. Sullivan (assassinated in 1977).
7

However, by mid-1972, CIA Executive Director William E. Colby was concerned
that revelations of illegal CIA domestic political activities, on behalf of
the Nixon Administration, might destroy the Agency. The big problem was
Ober's association with rat-eater Liddy and his partner in crime, CIA officer
Howard Hunt, and it is probably not a coincidence that the Chaos "case
officer" was reassigned concurrently with the 17 June 1972 arrest of the five
Watergate buggers. The IDIU was dissolved six months later.

By September 1973, Colby was the new Director of Central Intelligence, and
had prepared a list of the CIA's "family jewels," an array of illegal
domestic activities--now legal under the Bush Administration--which Colby
felt should be revealed. The abuses included spying on politicians and
government agencies, helping other agencies conduct domestic surveillance,
and following U.S. citizens abroad. Colby blamed counter-intelligence chief
James Angleton for the public relations disaster, and forced his retirement,
amid much bitterness and rancor.

But Colby's "limited hangout" and scapegoating of Angleton were part of a
clever shell game, and the Chaos staff continued to conduct name traces, and
follow dissidents abroad, and respond to FBI and military requirements.
Everything was exactly the same as before, including the ultra-secure
communications system and restricted filing system, except now it was
acceptable because it was done under the aegis of counter-terrorism.

Colby started the ball rolling in July 1972, when he assigned Ober a second
job as Chief of the CIA's newly created International Terrorism Group (ITG).
Ober told the Rockefeller Commission that his new responsibility was "setting
up and running a central program" within the CIA of information on
international terrorism and hijackings, and very possibly the penetration of
terrorist training camps in Algeria, Cuba and other enemy states. The ITG
also kept track of homeland-based black militants and white racists with
international terror connections. ITG reports were, like Chaos reports, were
sent to Kissinger at the National Security Council.

Ober's appointment as chief of ITG coincided with the establishment of
Nixon's Cabinet Committee to Combat Terrorism, the first U.S. Government
entity of its kind. But even after the official termination of Chaos in March
1974, the ITG continued to exist in the same suite of offices in the same
vault in the CIA's basement.

In March 1974 Ober was assigned other duties and a new ITG chief (not named
in the Rockefeller Commission Report) was assigned. The second ITG chief
(perhaps Lawrence K. White), had no deputy or case officer, and was assisted
by approximately ten female file clerks in what is described as basically an
"analytical" capacity. But ITG operations still relied on the Chaos folders
and computer tapes, which were maintained and updated. As of 1975, despite
the recommendations of several Congressional Committees, no Chaos files had
been destroyed, because the CIA could not adequately define a "dissident."

Senior CIA officer John Ryan became the third ITG chief in April 1975 and
served until 1977, when he was replaced by veteran CIA officer Howard Bane.

While Chaos was evolving into the CIA's International Terrorism Group, the
Phoenix Program--which did not expire with South Vietnam in April 1975--was
being employed as the model for a worldwide anti-terrorism unit in the CIA's
paramilitary Special Operations Division (SOD). Its main proponents, all
veterans of the Phoenix Program, had climbed the corporate ladder and were in
positions to turn their monster loose on all mankind.

Colby, the "father" of Phoenix and its staunchest defender before
Congressional Hearings in 1970 and 1971, appointed his close friend, Evan
Parker (the first Phoenix Director) as chief of the SOD in 1973. Parker
awarded CIA officer Robert Wall (self-described as the "grandfather" of
Phoenix, for his pioneering work on a pilot program in 1966) the first
"terrorism account," and then began reorganizing the SOD to fight Communist
insurgencies, using the Phoenix anti-terrorism model.8

The CIA's resident counter-terrorists found willing allies, invariably
fascist military dictators, around the world, and gladly taught them how to
terrorize entire nations into submission, through the arcane art of political
and psychological warfare. Perhaps the CIA's greatest success, in this
regard, was achieved in the midst of the Watergate scandal, under the
supervision of Kissinger, Colby, and the CIA's Western Hemisphere Division
chief, Theodore Shackley.

Donald Freed in Death In Washington (p 83-84) describes the CIA's covert
action that resulted in the bloody right-wing military coup in Chile
September 1973. Devised by the CIA's resident "black propaganda" expert,
David Atlee Phillips, the plan used "classic depth psychology and behavior
modification techniques to program individual Chileans toward a destiny of
victims or executioners. The CIA aim was to "serialize" and atomize the
Chilean people by using psychological terror to fractionate what had been
growing popular unity behind (Allende's) government." Freed explains that,
"Under the CIA program the middle classes had to be organized to "save
freedom," the military to impose temporary controls, the workers to give up
their drive for power."

The centerpiece of the CIA's Track II plan to overthrow the elected
government of Chile, by terrorizing the middle class through incredible acts
of violence, was the widespread publication of pictures of a man who was
allegedly "quartered" by radical leftists--but who in fact was mutilated by
the CIA's proxies in the Chilean secret service, DINA.

This ability to commit the most horrific acts of terror, and successfully
blame them on its enemies through black propaganda, is what makes the CIA's
inclusion in the OHS so dangerous. This one-two punch, in conjunction with
the CIA's expertise at "provoked responses" and "false flag recruitments,"
also makes the CIA itself a prime suspect in the terror attacks of 11
September, and the current propaganda campaign being waged in America now, as
a pretext to threaten terror against the Bush Administration's domestic
political opponents, as well as to win support from the terrified middle
class for the illegitimate Bush regime.

Homeland Insecurity Continued in Part Four:

The Terrorism Account Goes Underground

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

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