3 chapters of the life of expression (18,19,20 ) (Especially with its connivance with the Vatican, which was wet until the coup, too, Eh! Yeah, but, I think I know why, they have also polluted the Vatican with their bullshit, although obviously destabilised the Catholic Church, I, who was more a believer, for very personal reasons, I start to ask, which committed to nothing, but when, even!)
Surviving the Cataclysm
George Bush: the unauthorized biography – by Webster g. Tarpley & Anton Chaitkin
Chapter XVIII- Iran-Contra
« What pleases the prince by the dint of law. »
« As long as the police carries out the will of the Executive, it is acting legally. »
-Gestapo agent Werner Best@s1
We cannot give here a complete overview of the Iran-Contra affair. On the contrary, we will try to account for the crucial, central role of George Bush in these events, which has produced during his Vice-Presidency and overflowed in his presidency. The main elements of the Iran-Contra scandal can be reduced to the following points:
(1) secret arming the Khomeini regime in Iran by the U.S. Government during the official U.S. arms embargo-imposed against Iran, while the United States publicly denounced the recipients of its secret terrorists and kidnappers deliveries – a policy initiated under the Presidency of Jimmy Carter and accelerated by the Reagan-Bush administration.
(2) the Reagan-Bush administration secret arming of the « Contras » in the war against the Sandinista regime to the Nicaragua, so that this aid has been explicitly banned under US law;
(3) the use of pests Communist and terrorist – often directly armed by the Anglo-American – to justify a police state and secret, oligarchic rule at home;
(4) payroll and protect projects of arms trafficking with drug trafficking, embezzlement, theft by misappropriation of programs allowed Americans and the « silence » of opponents and knowledgeable participants in the schemes. and
(5) the continuous, systematic perjury and deception of the public by government officials, claiming to have no knowledge of these activities; and systematic acquiescence in this deception by members of Congress too scared to oppose.
When the scandal broke in late 1986 and early 1987, George Bush has maintained that he knew nothing about these illegal activities; that other government officials involved in them had kept him in the dark. that he had assisted at any important meeting where these topics are under discussion. Since then, many documents a time-ordered came to light, suggesting that Bush has organized and supervised many or most aspects of the penal code, the adventures of the Iran-Contra. The most relevant milestones for the role of George Bush are presented here in the form of a timeline. At the end of the timeline, the parts of the testimony of assistant of George Bush Donald Gregg will be provided, to allow a comparison of the documented events of the camp Bush account of things. Course of the duration of period of effect, the reader will observe the emergence of new structures within the American Government:
· The « Special Situation group, » as well as his subordinates ‘crisis plan standing group »(May 14, 1982).
· The « crisis Management Center » (February 1983).
· The « terrorist Incident working group » (April 3, 1984).
· The « Working Group on the fight against terrorism » (or simply terrorism Task Force) (July 1985).
« Operations sub-group » (January 20, 1986). These were among the officialstructures of secret of the American Government created from 1982 to 1986. Other structures, whose existence has not yet come to light, may also have been created – or may have persisted from a bygone era. None of this should be in the Constitution of the United States. All of these structures have focused on the role of secret command of then Vice President George Bush. Propaganda distributed to justify these changes within the Government stressed the need for secrecy make necessary covert is against the enemies of the nation (or its leaders). Certainly, a military command will act secretly in war and protect the secrets of its vulnerable capabilities. The device Bush, inside and behind the Government, was founded to conduct secret policies: make war, when the constitutional Government had decided not to make the war. support the enemies of the nation (terrorist and drug-runners) who are friends or agents of the secret government. In the period of the chronology, there are a number of meetings of public servants – secret meetings. That really made the policies, which were then well or poorly executed by the structure of the covert action? Looking at the little information that came to light on these meetings, we can arrive at some conclusions on which advocated certain policy choices; but we have not learned much about the real origin of the policies that have been executed. It is the rule of an oligarchy whose members are unknown to the public, an oligarchy which is bound by no known law.
January 20, 1981:
Ronald Reagan was inaugurated as president of the United States.
March 25, 1981:
Vice President George Bush was named the leader of the United States ‘ ‘personal,’ in the context of the National Council of security of the system of crisis management. »
March 30, 1981:
The new President was killed in an assassination attempt. He survived his wounds, then Vice President Bush has not succeeded to the Presidency.
May 14, 1982:
The position of Bush as head of all covert actions and de facto head of intelligence services – in a sense, the Acting President US – was formalized in a secret memorandum. The memo said that « National Security decision Directive 3, crisis management, establishes the Special Situation Group (SSG), chaired by the Vice President. The SSG is… responsible for formulating plans in anticipation of crises. « It is most amazing that, in all reports, articles and books on covert actions of the Iran-Contra, the existence of Bush SSG has received a lot of attention. Yet its importance in the management of these covert actions is clear and unmistakable, as soon as an investigation light is thrown on it. The note in question also announced the birth of another organization, the permanent crisis plan Group (CPPG), which should function as an agency of intelligence for Bush and his SMS. This new group subordinate, composed of representatives of Vice President Bush, National Security Council (NSC) staff, the CIA, the military and the State Department, was to « meet periodically in the White House room… « They had to identify areas of potential crisis and » [p] returned… plans and options the GSB policy « under President Bush. And they should provide to Bush and his deputies, « with the development of crises, alternative plans, » « action options » and « coordination of implementation plans » to address the « crises. « Finally, the subordinate group was to give President Bush and his deputies » recommended security, coverage and media plans that will improve the chances of successful execution. « Announced that the CPPG would meet for the first time on May 20, 1982, and that the agencies were to » provide the name of their CPPG for Oliver North, personal representative of NSC… « The memo was signed »for the President »by the Advisor to the national security of Reagan, William P. Clark. Declassified at Congress hearings.@s2 Iran-Contra
Gregg, Rodriguez and North join Bush team
Vice President hired Bush Donald P. Gregg as his senior advisor for national security affairs. Gregg now officially retired from the Central Intelligence Agency.
Donald Gregg brought in the Vice Presidency his former relationship with mid-level CIA assassinations Manager Felix I. Rodriguez. Gregg had been patron of Rodriguez to the Viet Nam. Donald Gregg worked under Bush in Washington since 1976 – when Bush was Director of the CIA – through the end of the 1970s, while the Bush clique was in war against President Carter and its Director of the CIA, Stansfield Turner. Gregg was detailed to work at the Council of national security between 1979 and 1982. 1976 right upwards through the assignment of NSC, the CIA Gregg agent saw agent of the CIA Rodriguez regularly. The two men were intensely loyal to Bush.@s3 their constant collaboration was crucial for the Organization of Vice President Bush’s covert actions. Rodriguez was now to land and the Vice Presidency.
December 21, 1982:
The first « Boland Amendment » has entered into force: « none of the funds made available by this Act [the defence appropriation Act] can be used by the Central Intelligence Agency or the Department of defense to provide military equipment, military training or advice or other forms of support for military activities, to any group or individual… with the aim of overthrowing the Government of the Nicaragua. « ‘ Boland I, »as it is called, remained in force until October 3, 1984, when it was replaced by a longer ban known as »Boland II. « @s4
Fawn Hall joined Oliver North as his assistant. Ms. Hall said she worked with the North on the development of a secret « crisis management Centre. « Lieutenant Colonel North, an employee of the National Security Council, pictured here is managing a new structure within the Bush regime led SSG/CPPG 1981-82.@s5
March 3, 1983:
In the spring of 1983, the National Security Council has established an office of « public diplomacy » propaganda in favour of and run coverage for the Iran-Contra operations and coordinate attacks on opponents of the program. Former Director of the CIA’s propaganda Walter Raymond was responsible for the effort. The unit was to work with national and international media, as well as private foundations. The Foundation affiliated in Bush family Smith Richardson was part of a National Security Council « Private donors Steering Committee » to coordinate this effort of propaganda. A note of 3 March 1983 of Walter Raymond CNS Director William Clark, provided the details of the program: »
You remember and I briefly spoke to the President when we informed on the N [e] S [ecurity] D [IR] [directive] D on public diplomacy that we are seeking as well as some potential donors at a later date…
« To achieve these goals by Charlie [United States Information Agency Director Charles Z. Wick] had two long meetings with a group of people representing the private sector. This group included mainly directors of program rather than donors. The Group was in a largely pulled together by Frank Barnett, Dan McMichael (man Dick [Richard Mellon] Scaife), Mike Joyce (Olin Foundation), the (Smith Richardson Foundation) Lenkowsky Leonard Sussman, and Leo Cherne of Freedom House. A number of others including Roy Godson also participated. « [Any above brackets is in the original].@s6]
On the other hand, Raymond describes Cherne and Godson as coordinators of this group. Frank Barnett was the Director of strategy National Information Center of the Bush family, for which Godson has been the Director of Washington, D.C.. Barnett was the Project Director of the Smith Richardson Foundation before being assigned to this position. The Smith Richardson Foundation sank millions of dollars into the projects of the Iran-Contra. Some beneficiaries of Smith Richardson, receiving money since the creation of the National Council of security of ‘private’ Steering Committee (according to annual reports of the Foundation) are as follows:
· Freedom House. It was formed by Leo Cherne, business partner of Director of the CIA William Casey. Cherne oversaw Walter Raymond « The donor Committee private. »
· National Strategy Information Center, founded in 1962 by Casey, Cernier and family Bush (see Chapter 4). Thus, when an article in a newspaper, support the Contras, or attacking their opponents – calling them « extremists », etc – it is likely to have been planted by the Government of the United States, George Bush-NSC « patrons »‘ device.
March 17, 1983:
Professional Manager murders Felix I. Rodriguez met help Bush Donald P. Gregg, officially and in secret, at the White House. Gregg then recommended to the Security Council National Adviser Robert « Bud » McFarlane a plan for El El Salvador-based military attacks on an area target nations of Central America including the Nicaragua. March 17, 1983 memo from Gregg McFarlane said: « the attached plan, written in March of last year, grew out of two experiments: »-anti-Vietcong operations run under my direction at the Viet Nam of III Corps from 1970 to 1972. These operations [see below], based on… a small elite force… produced very favourable results. « – Rudy Enders, who is now responsible for what remains of the ability of CIA paramilitary, went to El El Salvador in 1981 to investigate and develop plans for the effectiveness of counter-guerrilla operations. He returned and approved the attached plan. (I would add that Enders and Felix Rodriguez, who wrote the annex plan has worked for me in the Viet Nam and performing the actual described above). « This plan has met opposition and skepticism of the US Army… « I believe that the plan can work based on my experience in three Vietnam… »@s7 Officer later, Bush age Rodriguez would be exposed publicly as the supervisor of the Central American secret network illegally supplying weapons to the Contras; that exposure of Rodriguez would begin the public phase of the ‘Iran-Contra scandal’. Uncle of Rodriguez had been Minister of public works of Cuba under Fulgencio Batista and his family fled the revolution in 1959 by Fidel Castro. Felix Rodriguez has joined the CIA and was assigned to the notorious Miami Station of the CIA in the 1960s. The Ted Shackley-E. Organization of Howard Hunt, Rodriguez trained assisted by Meyer Lansky and Santos Trafficante, mafiosi and other Cubans in the art of murder and sabotage. Rodriguez and his trainee colleagues of CIA participated in many raids terror against Castro’s Cuba. Felix Rodriguez told his first adventures in the traffic of weapons under false pretenses in a book written Phantom, Shadow Warrior:
Just at the time President Kennedy was murdered, I went to Central America. I spent almost two years in Nicaragua, running the network of communication for [the company]… [O] your weapons cache was in Costa Rica. Funding for the project came from the CIA, but the origin of the money was hidden by the use of a cover company, a company called Maritima BAM, who was of [manual] initials spelled backwards Artim. Periodically, deposits of hundreds of thousands of dollars would be made in the accounts of Maritima BAM and paid by agents of Cuban society. The U.S. Government had the possibility of denial that she wanted; We got the money that we needed… In fact, what we were doing to the Nicaragua 25 years ago has some fairly close parallels to the Contra operation today.@s8
Rodriguez followed his boss of the CIA Ted Shackley in 1970 Southeast Asia. Shackley and Donald Gregg put Rodriguez in the massive killing and business boosting that Shackley and his colleagues took place during the first Indochina war. this bouquet became the heart of the company « ‘ which went into action from 15 to 20 years later in Iran – Contra. Funded Shackley cultivating opium of the Meo tribes in murder and used the doping product in turn to finance his killers. He formed the military political assassination unit Assistance Group-Special Operations Group (MAG – SOG); General John K. Singlaub, was captain of the MAG – SOG; Oliver North and Richard Secord were officers of the unit. In 1971, the Group Shackley had killed about 100 000 civilians in the CIA Operation Phoenix Southeast Asia. After the Viet Nam, Felix Rodriguez returned to the CIA’s Latin America operations, while the other parts of the Organization Shackley continued to drug-selling and trafficking of weapons in the Middle East. In 1983, the Group Shackley in the Middle East and the so-called « Shadow Warrior, » Félix Rodríguez, were attached from the Commander in Chief of the shadow, George Bush.
25 May 1983:
Secretary of State George Shultz wrote a memorandum for President Reagan, trying to stop George Bush to perform operations in Central America for the American Government. Shultz included a draft Directive by decision of national security for the President to sign and an organization chart showing the proposal for Shultz for the current jurisprudence-, by the President and NSC, through Secretary of State Shultz and his Deputy Secretary, down to a group interagency (« proposed a Structure »). The last line of the Shultz memo says bluntly what role is reserved to the CPPG supervised Bush: « scheduling of Crisis Group is relieved of its responsibilities in this area. » Back came a memorandum for the Honourable George P. Shultz, on a letterhead of the White House but bearing no signature, say no to Shultz: « institutional arrangements put in place in the SDDS-2 are, I believe, appropriate requirements [our national security in Central America]… » With the bashing is just a chart entitled « SDDS – 2 Structure for Central America. « The Summit is President; just below is a complex of Bush SSG and CPPG as managers of the NSC; and then below that is the Secretary of State and below him various agencies and interagency groups.@s9
July 12, 1983:
Kenneth Graffenreid, new Director of the Directorate of intelligence of the National Security Council, has sent a secret memo by using George Bush, Admiral Daniel Murphy:
« … Bud McFarlane asked that I meet you today, if possible, to examine the procedures for obtaining of Vice President reviews and competition on all N [e] S [ecurity] C [Oard] P [lanning G [roup] covert action and MONs. « @s1 @ s0
The Regency of Bush in Action
October 20, 1983:
The American invasion of the island nation of Grenada Caribbean was decided at a secret meeting of the metagovernment – the State of national security – under the direction of George Bush. National Council of security of operative Constantine Menges, a faithful attending these events, describes the action for posterity:
My work in the afternoon was to write the background note which would be used by the vice president, who, in his role of « crisis manager », would chair the first meeting of the NSC on the issue [Granada]… « . [F] ortunately got help from Oliver North, who in his three years with the NSC had become expert in the memo formats and formal procedures. After the morning meeting CPPG northward had begun to focus on the Grenade… Shortly before 18:00, the participants began to arrive: Vice President Bush, [Secretary of defense Caspar] Weinberger, [attorney general Edwin] Meese, J [anointed] C [hiefs’s] S [taff] president general Vessey, as Director of the CIA McMahon [State Dept. agent Lawrence] Eagleburger,… North and myself. We all went to the Situation Room in the White House. President Reagan was travelling as [CIA Director] Bill Casey and Jeane Kirkpatrick… Vice President Bush sitting in the Chair by the President.
Menges continued: « … A further update was the first order of the day. Then the discussion moved to the availability of military forces and how long it would take to prepare them. The objective from the beginning was planning a rescue [of the American students held on Grenada] operation guaranteeing a success fast, but with a minimum of losses… » « the first suggested presidential decision was to prepare for a possible military action by moving the ships of the Navy, who took a marine unit to rotate forces in the Lebanon, and other units of the Navy, towards Granada. « It was imperative to secret… Under this plan, no there is no change in the schedule of the man at the top of the page. President Reagan… surrendered in Augusta (Georgia), for a weekend of golf. Secretary of State Shultz would too… » Labour is now on detailed action plans, under the direction of the ad hoc group of the Vice President’s Situation. « Friday afternoon [21 October]… the CPPG… [meeting] room 208… Now the tone of our discussions was passed if we would be for how this could be done… « [The] safer means [should] be used to order American ships to change course… towards Granada. Nevertheless, ABC news had learned about this and broadcast. »
Thus, the line determined conduct without that the President was « leaked » on the media and became a -earned. Menges memo continues:
It pleased me to see that now our Government is working as a team… That evening, Ollie North and I worked together… written submissions of background and decision. In the early evening [agent NSC Admiral John] Poindexter has reviewed our first project and made some minor revisions. Then memoranda of Grenada have been sent to the President, Shultz and McFarlane at the golf course in Georgia… Shortly before 09:00 [22 October], members of the foreign policy of the cabinet [sic!] began to arrive at the White House – all out of sight of journalists. Participants included Weinberger, Vessey and Fred Iklé defence; Eagleburger and Motley State; McMahon and CIA operations officer; and Poindexter, North and myself of the NSC. Vice President Bush presided over the Washington Group. All participants were escorted to room 208, which many had never seen before. The vice president was sitting at one end of the long table and Poindexter to another, with speaker phones placed so that everyone could hear the President Reagan, Shultz and McFarlane. The meeting began with a presentation and an update… There was lively discussion… The conclusion was to start Tuesday, October 25, the United States and allied forces would be able to launch a military action… The legal authority only on Grenada was the Governor general, Sir Paul N. Scoon,… a citizen of Grenadan appointed by the British Crown… Ingeniously, he did pass the request for external help to restore order… Hour by hour detailed plan was distributed to everyone at the meeting. There was also a brief discussion of the war powers resolution, which requires the President to obtain approval of the Congress if he intends to deploy American troops in combat for more than sixty days. There’s no doubt that American combat forces would be out before the time… The President had participated and placed on the speaker; It took its decision. The United States would respond to the call of our neighbours in the Caribbean. We ensure the security of our citizens.@s1@s 1
Obviously, it there was no perceived need to follow the Constitution of the United States and leave the question of the advisability of the war until the Congress. After all, President Reagan had subscribed, the golf course, with the decision of President Bush on the subject. And the British candidate in the target countries had requested the assistance of Mr. Bush!
November 3, 1983:
Using Bush Donald Gregg, spoke with Felix Rodriguez to discuss of « the general situation in Central America. « @s1 @ s2
Oliver North accompanied Vice President Bush to the El Salvador as his assistant. Bush met with the commanders of the Salvadoran army. North helped Bush to prepare a speech, in which he called publicly on them to end their support for the use of « death squads. « North subsequently testified speech of that Bush » was one of the bravest things I’ve seen for someone [sic]. « @s1 @ s3
Attack of Jupiter
1 January to March 1984:
The Wall Street Journal on March 6, 1985 gave a fictionalized version of – some aquatic adventures in Central America:
Weapons of speedboats and a helicopter launched from a Central Intelligence Agency « mother ship » attacking the Nicaragua Pacific port, Puerto Sandino on the evening of the new year without Moon in 1984. A week later the stars regain the oil terminal of the mine. Over the next three months, they planted mines over 30 in Puerto Sandino and also in ports to Corinto and El Bluff. By air and sea raids on coastal positions, the Americans flew – and tires – an armed helicopter that accompanied the force funded by the U.S. Latino, so that an aircraft of the CIA has provided Australian advice sophisticated for night attacks. The operation, described in a document classified CIA, marked by the involvement of tip of the United States in the four-year guerrilla war in the Nicaragua. More than any single event, he solidified opposition Congress in the secret war, and no new money has been approved the year since that time, the last CIA beyond checks drawn at the beginning [in the]  was… CIA paramilitary officers were shocked by the inefficiency Contras… The strength of the insurgency grew… During 1983… the CIA began to use the guerrilla army as a cover for its own force of small « Latino »… [The] most famous attack by armed speedboats came October 11, 1983, against oil facilities at Corinto. Three days later, a subsea pipeline Puerto Sandino was sabotaged by the frogmen Latino [sic]. The message was not lost on the unit of Esso Exxon Corp. [formerly Standard Oil of New Jersey], and the international giant informed the Sandinista Government it would provide was more tankers for the transport of oil to the Nicaragua. Success of the CIA to scare a major shipper well integrate its mining strategy… The mothership used in mining is described by sources as a Charter vessel with a configuration similar to oilfield service and tow the ship with a long, flat part rear where helicopters could arise…
The reader may have already guessed that Vice President Bush (with its history in « oilfield service » and its commitment to a « high level of the National Security Council Committee ») was sitting in his office in Washington and planned these brilliant plans. But this assumption is probably incorrect – it is off by about 800 miles. On Jupiter Island, Fla., where the Bush family has had a seasonal residence for the past decades (see Chapter 4) is the seat of the Plateau Continental Associates, Inc. (CSA) .@s1@s4
The company describes itself as « an environmental consulting firm specializing in science applied sea and technology… founded in 1970… The main office… is located in Jupiter, Florida, about 75 miles north of Miami. « The CSA has » divisions Offshore and Onshore. « He cites among his customers company Exxon, United States of America; Military Sealift Command; Pennzoil company; United States Department of defense/Army Corps of Engineers; and other oil companies and Government agencies. The main concern of the CSA is underwater engineering, involving often oil or nuclear facilities. There a lot of projects « classified ». It employs basement vehicles more sophisticated world and monitoring equipment. The founder and the Director general of the CSA is « tender » by Robert Stevens. A former Lieutenant Commander in naval special operations, Stevens is a close collaborator of the agent of the CIA Theodore Shackley and agent of Bush Felix Rodriguez since the beginning of the 1960s, when Stevens served as captain of a ship in the invasion of Cuba at the Bay of pigs and through the Viet Nam war. During the period 1982-85, the CSA has been mandated by the U.S. intelligence community, including the CIA to undertake a coastal reconnaissance and field and logistic support work in the Eastern Mediterranean to support the deployment of marines Americans to the Lebanon. and coastal mapping and the recognition of the Caribbean island of Grenada before military action of October 1983 U.S.. Count approximately the fall of 1983, CSA has been used to design and implement a programme of operation of several Nicaraguan harbours. After the U.S. Senate restricts these activities non-U.S. only to personnel, trained CSA « Latin American nationals » to a facility located on the island of El Bravo off the eastern coast of the Nicaragua. ACTA Non Verba (actions not words) is a « subsidiary » of the CSA, established in 1986 and located at the same address of Jupiter. Rudy Enders, the head of the CIA deployed paramilitary – section by using George Bush Donald Gregg – is a minority shareholder of the Acta Non Verba (ANV). Difficult to speak of the ANV promotional literature said it focuses on « anti-terrorist activities in the marine environment. « A CIA agent former high level, with a private interview was used in the preparation of this book, describes this »fish farm »in what follows the more realistic terms: » operations to assassination and the training company controlled by Ted Shackley, under the guise of a private corporation with an ordinary of the Board of Directors, shareholders, etc., located in Florida. They secretly bring in Haitian boat people and Asia as recruits Southeast, as well as Korean, Cuban and American. They lease the murders and intelligence to Governments, corporations and individuals and also use them to cover or development implement projects/activities of « fish farming ». « The result of attack of Jupiter – the mining of the ports of the Nicaragua – was that the Congress got sufficiently angry to pass amendment ‘Boland II’, tightening laws against this war public / private (see the entry for October 3, 1984).
April 3, 1984:
Another unit of Bush terrorism Subcommittee was formed, as President Reagan signed national security decision Directive 138. The new « Working terrorist Incident » reported to the Group’s Special Situation of Bush. The TIWG ready agencies to support the assaults of activists fight against terrorism on the Israeli model.@s1@s5
« How can anyone oppose? »
June 25, 1984:
National planning group security, including the Reagan, Bush and senior officials met secretly in the bathroom situation of White House in 14:00 they discussed whether to risk ‘third-country aid’ to the Contras, to circumvent the prohibition of Congress, promulgated on 21 December 1982. George Bush spoke in favour, according to the minutes of the meeting. Bush said: « How can someone oppose the United States encouraging third parties to provide assistance to the anti-sandinistes under the terms of the [intelligence] conclusion. The only problem that could happen is that if the United States should promise giving up then back: these third something some people might interpret this as a sort of Exchange « [it is emphasis added]. Warning that it would be illegal, Secretary of State Shultz said: « I would like to get money for the contras, but another lawyer [then-Treasury Secretary] Jim Baker said if out us and try to get money from third countries, it is an impeachable offense. « Casey Directeur of the CIA recalled Shultz that » Jim Baker changed his mind [and now supported the bypass]… « Adviser NSC that Robert McFarlane has warned, » I propose that it is no authority for all those who ask for help from others for the anti-sandinistes until we have the necessary information and I certainly hope that none of this discussion will be made public in some way. « President Ronald Reagan, and then closed the meeting with a warning against any person leaking the fact that they are considering to bypass the law: » if such a story comes out, we will all be suspended by inches before the White House until we find out who did. « In March of the following year, Bush personally organized the transfer of funds to the Contras by the Honduran Government, assuring them that they would receive compensatory aid to the United States. The minutes of this meeting, originally marked « secret », was released five years later, at the trial of Oliver North in the spring of 1989.@s1@s6
October 3, 1984:
The Congress adopted a new version of the first attempt to ban the American secret war in Central America. This ‘Boland II’ amendment seeks to prevent any conceivable deception by the device of covert actions: « during the year 1985, no funds available to the Central Intelligence Agency, the Department of defense, or any other agency or entity of the United States involved in intelligence activities may be obligated or expended for this purpose or which would support directly or indirectly, military or paramilitary operations in Nicaragua of any nation, group, organization, movement or individual. « This Act is effective October 3, 1984, to December 5, 1985, when it was replaced by the limitation of aid various acts which, taken together, were called » Boland III. « @s1 @ s7
November 1, 1984:
Partner of Felix Rodriguez, Gerard Latchinian, was arrested by the FBI. Latchinian was then tried and convicted of smuggling $10.3 million of cocaine to the United States. The drug was to finance murder and the overthrow of Honduras President Roberto Suazo Cordova. Latchinian was sentenced to 30 years imprisonment.
November 10, 1983, a year before the arrest, Felix Rodriguez had filed for annual registration with the Secretary of State of Florida on behalf of the joint enterprise of Latchinian and Rodriguez, « Giro Aviation Corp. » @s1 @ s8
December 21, 1984:
Felix Rodriguez met in the Office of Vice President Advisor Bush Donald Gregg. Immediately after this meeting, Rodriguez met with Oliver North, supposedly for the first time in his life. But the Bush Adviser has vehemently denied to investigators that he « presents » an employee of the CIA to North.@s1@s9
January 18, 1985 (Friday):
Felix Rodriguez met Ramon Rodriguez Milian (not known to be a relative of Felix), Whitener accountant and money, which had moved to $1.5 billion for the Medelli@aan cocaine cartel. Milian has testified before a Senate of drug trafficking investigation Contras, that more than a year earlier it had granted the request of Felix and given $10 million of cocaine cartel to Felix for the Contras.
Milian Rodriguez was questioned in his cell in the prison in Butner, North Carolina, by the investigative journalist Martha Honey. He said, Felix Rodriguez had proposed that « in Exchange for money for the cause of Contra that he would use his influence in high places to obtain the agreement [cocaine] U.S. »goodwill »… Frankly, one of the selling points was that he could speak directly to Bush. The question of goodwill was not something that was going to go through 27 bureaucratic hands. It was something that was directly between him and Bush. « Ramon Rodriguez Milian was a Republican contributor who had partied with an invitation to the inauguration of Reagan-Bush 1981 ceremony. He was arrested on board a jet private Panama-bound by federal agents in May 1983, while carrying more than $5 million in cash. According to Felix Rodriguez, Milian was looking for a way out the accusations of narcotics when he met with Felix on January 18, 1985. This meeting remained secret until two years later, when Felix Rodriguez has become notorious in the Iran-Contra scandal. The Miami Herald broke the story June 30, 1987. Felix Rodriguez to denied firstly never met Ramon Rodriguez Milian. But then a new story has been developed with various agencies. Felix ‘memory’ of the meeting of January 18, 1985, he had a « said nothing » during it, and « remember » that it had filed documents with the FBI and the CIA, referring them to the afterwards.@s2@s0 just meeting
January 22, 1985 (Tuesday):
George Bush met with Felix Rodriguez in the Executive Office building. The agenda may have included the results of the meeting of five days before representative of cartel of cocaine Medelli@aan Milian Rodriguez.
Felix ghost writer tells us not what has been said, only that Felix was « able to show [Bush] some of the photos from my album. Honour to be with the Vice President… was overwhelming. Mr. Bush has been easy to talk about, and he was interested in my stories. « @s2 @ s1
End January, 1985:
Office of George Bush officially organized contacts through the Department of State for Felix Rodriguez to operate in Central America from a base in El Salvador, for « private » false. The Ambassador of the United States in El El Salvador, Thomas Pickering, then wired to Gen. Paul F. Gorman, Commander of the southern command of the U.S. Army: « Rodriguez has some high-level contacts in the White House, back [State Dept] and DOD [Department of defense], which some argue strongly its use in El El Salvador.
« It is in our interest that Mr. Rodriguez confer with you personally before coming to El El Salvador. I have some obvious concerns about this arrangement… « Félix Rodríguez visited the Panama to speak to general Gorman. They discussed his secret aid to the Contras « since the beginning of the 1980s. » @s2 @ s2 Rodriguez, the story of George Bush the helper private, voluntary Contras, flew from Panama to El El Salvador on C – 12 aircraft personal general Gorman. General Gorman also sent a confidential cable to Ambassador Pickering and colonel James Steele, US man of military liaison with the refuelling Contra El El Salvador in operation: « I have just met here with Felix Rodriguez, [deleted, probably »CIA »] retired from Miami. Born in Cuba, a veteran of guerrilla operations [several deleted rows]… « it works like an ordinary citizen, but his acquaintanceship with the [ice] P [resident] V is real enough, dating back to the days of it as D [Director of] C [entral] I [intelligence]. « Rodriguez’ primary commitment of the region lies in [deleted] where he wants to help the NDR [military forces Contras]. I told him that the NDF deserved its priority… He wants to fly with E [t] S [alvador] a [ir] F [orce] to establish its credibility, but that seems… for me the two unnecessary and unwise… »@s2@s3
February 7, 1985:
The crisis plan Group (CPPG), subordinate to the President Bush’s Special Situation Group (SSG), met to discuss ways to circumvent the prohibition of the Boland Amendment on aid to the Contras. They agreed on a « presidential letter » should be sent to President Suazo of the Honduras, « to provide several seductions to Honduras in Exchange for its continued support of the Nicaraguan resistance. Accelerated these deceptions included delivery of military supplies ordered by the Honduras, a gradual release of funds for economic assistance withheld (ESF) and other support. » The foregoing was the admission of the Government of the United States in the trial of Oliver North 1989 – number 51 in a series of « conditions » that was given to the Court to avoid having to classified documents.
February 12, 1985:
The confessions of Government in the North of the trial continued:
« … North offers McFarlane to send a memo [senior officials on] the recommendation of the CPPG [Bush-supervised body, often chaired by the Adviser to Bush Don Gregg]… The memo argues that this part of the message [to the Honduran President] should not be included in a written document, but should be transmitted verbally by a discreet emissary. «[It was to be George Bush himself – see 16 March 1985].» Honduras would benefit from increased to be diverted aid to the Contras, in order to mislead the Congress and Americans population.@s2@s4
15 February 1985 (Friday):
After Rodriguez arrived at the El Salvador and began implementation of the central supply depot for the Contras – to Ilopango air base – Ambassador Thomas Pickering sent a « Eyes Only » cable to the State Department on his conversation with Rodriguez. Cable of Pickering was the PostScript, « Please inform Don Gregg in the Office of the V.P. for me. « @s2 @ s5
February 19, 1985 (Tuesday):
Felix Rodriguez met Bush staff in the offices of Vice President at the Executive Office Building, their presentation on the progress of his mission.
Over the next two years, Rodriguez has met frequently with Bush officials in Washington and Central America, often jointly with the CIA and other officials and conferred with personal Bush by phone times.@s2@s6 countless
March 15-16, 1985 (Friday and Saturday):
George Bush and Felix Rodriguez were in Central America on their joint project.
Friday, Rodriguez supervised delivery to the Honduras military supplies to Contras FDN whose main base was in the Honduras.
Saturday, George Bush met with President Honduran Roberto Suazo Cordova. Bush said the Reagan-Bush administration accelerate the delivery of more than $110 million in economic and military aid to the Government of Suazo Suazo. It was the « quid pro quo »: a bribe for American Suazo for the mercenary force support and transfer through Honduras military supplies Contra, which had been banned directly by the Congress.
Government as Counterterror
June 14, 1985:
« Shiite Muslim terrorists » have hijacked an airliner Athens-de-Rome. An American was killed, 39 Americans were held hostage and released on 30 June.
Vice President George Bush was appointed by President Reagan to head the Working Group on combating terrorism (or terrorism Task Force). Working Group of Bush was a way of strongly concentrate the powers of the Government in the hands of the Bush clique of policies such as the Iran-Contra arms plans. The task force on terrorism had the cast following characters:
GEORGE BUSH, the Vice President of the United States: PRESIDENT
Admiral James L. Holloway III: Executive assistant to President Bush
Craig Cie: Assistant Deputy of Bush under Holloway
Vice Admiral John Poindexter: Representative senior NSC to President Bush
Marine Corps, Lieutenant Colonel Oliver North: Representative of the NSC from day to day to George Bush
Amiram Nir: Counterterror Adviser to the Prime Minister Israel Shimon Peres
Lieutenant-Colonel Robert Earl: Staff member
Terry Arnold: Principal consultant
Allen, CIA agent: Senior Review Group
Robert Oakley, Director, Department Counter terrorism State Office: Senior Review Group
Noel Koch, Assistant to the Secretary of defense Deputy Richard Armitage: Senior Review Group
Lieutenant-general John Moellering, Joint Chiefs of Staff: Senior Review Group
Oliver « Buck » Revell, the FBI Executive: Senior Review Group
It was the first official contact known to the Israeli Nir with the Government of the United States in the Iran-Contra affair. In the future, Nir would serve as main Israeli agent in the secret arm of hostages with the Iran negotiations, alongside these other American participants well known as Oliver North and Robert McFarlane. The Organization of the Task Force of terrorism, as we shall see, was a permanent affair.@s2@s7
8 August 1985:
George Bush met with national security planning group in the section of the residence of the White House. Challenging their deliberations on the issue of terrorism, a car bomb had blown up that day there to a base of air American in Germany, with 22 American victims.
Officials discussed the shipment of arms manufactured in the United States in the Iran by Israel – Israeli stocks of TOW missiles and allow Israel to sell arms to the Iran.
According to the testimony of Robert McFarlane, the transfer was supported by George Bush, Casey and Donald Regan and opposed by Shultz and Weinberger.@s2@s8
August 18, 1985:
Luis Posada Carriles escaped from prison in Venezuela, where he was detained for terrorist killing 73 people. Posada by using forged documents falsely identified as a Venezuelan named « Ramon Medina », flew to Central America. In a few weeks, Felix Rodriguez entrusted him to supervise the Bush refuelling operations office Contra El El Salvador air force base running. Posada ran personally safe-houses used for the crews of the CIA. Rodriguez explained the arrangement in his book: « because of my relationship with [El El Salvador Air Force] Gen. Bustillo, I managed to pave the way for [the operations attributed to Oliver] North to use the facilities at Ilopango [El El Salvador air force base]… I found someone to manage the refuelling operation focused on the Salvadorans on a daily basis. They knew that this person as Ramon Medina. I’ve known him by his real name: Luis Posada Carriles… I first met Posada in 1963 at Fort Benning, Georgia, where we went through basic together… training as second lieutenants US Army [sic!]… « Rodriguez fails to explain this agent Carilles Posada was initially recruited and trained by the same CIA murder operation, » JM/WAVE »in Miami, as was Rodriguez himself. Felix continues: « in the 1960s, it would have been to work to the DISIP, the Venezuelan intelligence service and rose to considerable power in its ranks. It was said that he had one of the best half dozen jobs in the organization… After the bombing of flight of a Cubana airliner on 6 October 1976, whose seventy-three people were killed, Posada was charged with the attack and was thrown in prison… Posada was confined in prison for more than nine years… « @s2 @ s9
September 10, 1985:
Adviser to the national security of George Bush, Donald Gregg, met at 16:30 Oliver North and colonel James Steele, the military US official to the El Salvador who oversaw the freight flights going to the Contras from various points in Central America. They discussed the information provided to one or more of them by the arms dealer Mario DelAmico, provider to the Contras. After the entry in the notebook of Oliver North, they discussed features of the offer of flights and operations commander Enrique Bermudez of the FDN.
Elsewhere in the pages of the newspaper for that day, Colonel North noted that DelAmico had purchased a certain elements of ammunition 1 000 for the Contras.@s3@s0
November 1985 (ca. American Thanksgiving Day):
George Bush Oliver North sent a note with thanks for « your dedication and your hard work with the thing hostage and with Central America. « @s3 @ s1
Congress passed new laws limiting American aid to the Contras. The CIA, the Department of the defense, and « any other agency or entity of the United States involved in intelligence activities » were prohibited to carry arms to the Contras. The CIA was authorized to provide a training and communications equipment. « Humanitarian » was allowed. These acts, known together as « III Boland », were in force since December 4, 1985 to October 17, 1986.
December 18, 1985:
Official CIA Allen, a member of the Working Group on George Bush terrorism, wrote an update on the arm-hostages to the Iran. Memo to Allen was an account of a member without the group name of the representatives of the U.S. Government in the negotiations of arms with the Iranians. The US official without a name (from the context, probably the consultant Michael Ledeen of NSC terrorism) is referred to in the memo of Allen « object ». Allen wrote: « [Speaker of the Iranian Parliament Hashemi] Rafsanjani… believes the Vice President George Bush is orchestrating the US initiative with the Iran. Indeed, depending on the topic, Rafsanjani believes that Bush is the most powerful in the United States human because in addition to being Vice President, he was once Director of the CIA. « @s3 @ s2
December 1985-January 1986:
George Bush has completed his formal study of terrorism in December 1985. John Poindexter now realized Oliver North to return to the work with Amiram Nir. Amiram Nir came to Washington and met with Oliver North. He told American officials that the Iranians had promised to release all the hostages in Exchange for new weapons. Would have been after this rin visit, in an atmosphere of constant terrorism and rumors of terrorism, President Reagan has been persuaded of the need to limit the deliveries of weapons to Iran.@s3@s3
December 27, 1985:
Terrorists bombed the airports of Rome and Vienna, killing 20 people, including five Americans. The crisis group plan (CPPG), supervised by the Bush Office and report to Bush, criticized the Libyans for the bombing and began planning for a military strike against the Libya. Yet an unprecedented analysis of the CIA and the Israelis have both recognized that the Abu Nidal Group (indeed, the Agency Israeli Mossad) made the attacks.@s3@s4
Bush of CPPG later organized the American bombing of Libya, which was held in April 1986.
31 December 1985 (Tuesday):
An arms dealer Iranian Cyrus Hashemi said CIA agent based in Paris Bernard Veillot Vice President Bush was doing market back to the Iran arms sales, and this formal approval of the US for the Iran-private sales, amounting to $2 billion, was « going to be signed by Mr. Bush and [the US Marine Corps Commander] Gen. [Paul X.] Kelley Friday. « @s3 @ s5
Veillot loudly and publicly exposed in the middle of the Iran arms deals, has been indicted by the United States and then charges were quietly dropped and Veillot went underground. A few months later Hashemi died suddenly of « leukemia. « @s3 @ s6
January 2, 1986 (Thursday):
Fight against Israeli terrorism, Chief Amiram Nir met North and Poindexter in Washington. The report by Bush on terrorism has now been released in the Government, but had not yet appeared. Report of Bush has been urged that appointed a coordinator of the fight against terrorism for all of the U.S. Government – and Oliver North was the only man for this location.
At this meeting, Nir proposed specifically that prisoners detained by the Lebanese under Israeli control and 3 000 American TOW, be exchanged missiles against American hostages held by the Iran. Further discussions between candidate Nir and Bush questioned the idea of so-called news that the Iranians be overcharged for the weapons shipped to them, and the surplus funds be diverted to the Contras.@s3@s7
January 6, 1986 (Monday):
President Reagan met George Bush, Donald Regan, McFarlane and Poindexter. The President presented a draft « presidential finding » which provided for the delivery of arms to Iran by Israel. The President has signed this document, written following discussions with Amiram Nir. The project consciously violated the National Security Act which had established the Central Intelligence Agency, requiring notification of Congress. But Bush has joined in urging President Reagan to sign this ‘discovery’: « I find that the next operation in a foreign country… is important for national security of the United States and because of its extreme sensitivity and the risks to the safety, I hereby determine it is essential to notice of the limit and direct the Director of the CIA to refrain from this conclusion to attend the Congress , in accordance with article 501 of the National Security Act of 1947, as amended, until what I order otherwise « [it is emphasis added]. « … The universal security group [the Government] will act to facilitate the efforts of third parties and third countries to establish contacts with the moderate elements inside and outside the Government of the Iran by providing these elements with weapons, equipment and related materials in order to increase the credibility of these elements… « Of course, Bush, Casey and their Israeli allies had never sought to strengthen »moderate elements »in Iran, but overthrew them at every opportunity – starting with President Abolhassan Bani-Sadr.@s3@s8
January 7, 1986:
President Reagan and Vice President Bush met at the White House with several other administration officials. There’s an argument about the new proposals by Amiram Nir and Iranian arms Manucher Ghorbanifar dealer to Exchange weapons for hostages.
Secretary of State George Shultz later said the Tower Commission that George Bush has argued the deal of arm-de-hostages at this meeting, as President Reagan, Casey, Meese, Regan and Poindexter. Shultz has reported that he and Secretary of defense Caspar Weinberger opposed other weapons shipments.@s3@s9
January 9, 1986:
Lieutenant-Colonel Oliver North has complained, in his notebook, « Felix [Rodriguez] » has been « talking too much about the V [ice] connection P [resident]. « @s4 @ s0
January 15, 1986:
CIA and Mossad employee Richard Brenneke wrote a letter to Vice President Bush giving all details, alerting Bush on his own work on behalf of the CIA illegal – but U.S. sanctioned by the Government – the sale of arms to Iran.@s4@s1
George Bush and Oliver North worked together on the illegal map.
Later, North of trial, the Bush administration — depicting Colonel of the North as the main strategist in case!-stipulated that North « established points for discussion at a meeting between Admiral Poindexter, Vice President Bush and [the new] Azcona President Honduran [José Simon]. North recommended that Admiral Poindexter and Vice-President Bush say President Azcona of the need for the Honduras to work with the U.S. Government on the increase in participation with regions and support the resistance. Poindexter and Bush would also raise the issue of the best support from US Government for the States bordering Nicaragua. « I.e., the Honduras, what of course »the Nicaragua borders », was to get more U.S. aid and should pass some of them through to the Contras. In preparation for January 1986 Bush-Azcona, meeting, the US State Department has sent to the Adviser to Bush Donald Gregg a memorandum which « alerted Gregg Azcona would insist on clear benefits economic and social cooperation with the United States [Honduras] sound. « @s4 @ s2 two months after the January meeting Bush-Azcona, President Reagan asked Congress for $20 million in emergency aid to Honduras, to repel a cross-border raid by Nicaraguan forces against the camps of Contra. Congress voted « emergency » spending.
January 17, 1986:
George Bush met with President Reagan, John Poindexter, Donald Regan and staff member of the NSC Donald Fortier to examine the final version of the draft arm of Iran on 7 January. With encouragement from Bush and the lack of opponents of the regime, President Reagan signed the authorization to arm the Khomeini regime with missiles and keep the facts of this system of Congressional oversight committees. It was the reality of the Bush « counterstrategy » to terrorism, for implementation including its Terrorism Task Force had been fair and then creating the secret mechanism. The official history of the meeting – in the Tower Commission report – is as follows: « [T] he proposal aimed at moving to lead U.S. sales to Iran of weapons… was considered by President at a meeting on January 17, which only the Vice-Chairman, Mr. Regan, Mr. Fortier and VAM Poindexter attended. Subsequently, the upper level only to examine the Iran initiative received was for one or other of the daily briefings of national security of the President. They were regularly attended only by the President, the Vice-president, Mr. Regan and VAM Poindexter. No there was no subsequent collective consideration of the initiative of Iran by the NSC principals, before becoming public 11 months later…
Because of the obsession with secrecy, review interagency initiative was limited to the level of the firm. With the exception of the NSC and staff, after January 17, 1986, a handful of CIA officials, the rest of the departments and agencies have been largely excluded.
« The National Security Act also requires notification of Congress by clandestine intelligence activities. If not done in advance, notification must be « timely. » The presidential finding of January 17 realized that notification of Congress be held, and this decision seems to have never been reviewed. « @s4 @ s3
January 18, 1986:
Secretary of defense Caspar Weinberger was intended to prepare for the transfer of 4 000 anti-tank tow missiles to the CIA, which would sail to the Iran of Khomeini. Without going through the usual channels for secret shipments, he was elected to have his senior military Assistant, lieutenant-general, Colin L. Powell, manage arrangements for arm transfer.@s4@s4
19 January-21, 1986:
Help George Bush Deputy national security, colonel Samuel Watson, worked with Felix Rodriguez in the El Salvador and met with colonel James Steele, the U.S. military liaison officer with the Organization of replenishment Contra disguised as El Salvador.@s4@s5
Games of Bush in the North as patron of the fight against terrorism – and « scapegoat »
January 20, 1986:
Following the recommendations of a non-official report of the task force on George Bush terrorism, President Reagan signed national security decision Directive (SDDS) 207.
The report Bush unofficial report official Bush released in February and 207 SDDS organized by Bush, together presented Oliver North as « Mr. Iran-Contra. « North became the nominal, up-front Coordinator program administration counter-terrorism, hiding better he could Bush hand in this matter. He received a secret and personal office (the Office of combating terrorism), separate from the regular members of the NSC staff. George Bush now reassigned employees of terrorism Task Force, Craig Coy, and Robert Earl, to do the daily work of the secret Office of North. The Bushmen spent the next year working on the Iran arms sales: Earl spent a quarter to a half of his time on the Iran and Contra support operations; CIE « knew everything » about the project of democracy. North traveled a good part of the time. Earl and co. were at this time officially fixed toward the center of crisis management, North worked in Director 1983.@s4@s6 Deputy FBI Revell, often George Bush « hit man » against domestic Bush opponents, partially disclosed this game shell in a letter to Senator David Boren (D – Ok.), explaining the FBI with North contacts :
[April 1986], North was the NSC official appointed by the President of the coordination of our national programme of counter-terrorism. He was responsible for the close collaboration with the designated lead agencies and responsible for attending all interagency groups, maintain national programming documents, assist in the coordination of research and development with regard to the fight against terrorism, facilitating the development of response options and oversee the implementation of the recommendations of terrorism Task Force Vice President. This description of post of colonel North is set out in the report of the Working Group of the President Vice on the fight against terrorism, February 1986. There is a still more detailed and complete position of colonel North description in the classified National Security decision Directive #207 issued by the President on January 20, 1986. @s4 @ s7
The task force on terrorism Bush, having concluded his official work, had simply made himself into a renowned, permanent agency, secret. Its new name is operational sub-group. In this transformation, CIA Contra-Manager Duane Clarridge had been added to the Working Group to form the GSO « , » including North, Poindexter, Charles Allen, Robert Oakley, Noel Koch, general Moellering and Revell « Buck ». The Oliver North diaries, even before this final phase of the Bush-North unit there were at least 14 meetings between the North and the task force on Bush senior members Holloway, Oakley and Allen, its senior consultant Terry Arnold and his men of staff Robert Earl and Craig Coy. Newspapers in the North from July 1985 to January 1986, show a meeting with President Reagan and four meetings with Vice President Bush: either the two alone, with Bush and Amiram Nir, North or North with Bush and Donald Gregg. Bush counter-terrorism units had its own channels of communication and a global network of anti-terrorist computer called Flashboard outside all constitutional government agreements. Opponents of the arming of terrorists, including members of the cabinet, did not have access to these communications.@s4@s8 this unit had responsibility for the Iran of arms sales; funding private Contras, contributions, theft, dope execution; ‘public diplomacy’ of the project of democracy to support these efforts; and Counterintelligence against other government agencies and domestic opponents of the policy.@s4@s9
January 28, 1986:
George Bush met with Oliver North and FDN Contra Director policy Adolfo Calero in the Old Executive Office Building.@s5@s0 North and Calero would collaborate to protect George Bush during the effort to supply Contra a blown out in October 1986.
January 31, 1986:
An arms dealer Iranian Cyrus Hashemi was told by an agent of French weapons that [a] n Wizard of the course of the vice President to be in Germany… and « is very clear » indication that the transaction can go forward referring to George Bush supposed approval of the private sale of firearms Iran.@s5@s1
February 6, 1986:
In response to the letter on January 15 of Richard Brenneke, Bush aid Lieutenant-Colonel E. Douglas Menarczik wrote to Brenneke: « the U.S. Government will not be allowed or participate in the supply of war material to the Iran and continue all these efforts by American citizens to the extent of the law. 1 »@S5@S2
February 7, 1986: Samuel M. Evans, a representative of Saudi Arabia and Israel arms dealers, said Cyrus Hashemi that « [t] he green light now finally given [for the private sale of arms to the Iran], that Bush is in favour, Shultz against, but nevertheless, they are ready to go forward. » @s5 @ s3.
February 25, 1986:
Richard Brenneke wrote again to the office of Bush for Lieutenant-Colonel Menarczik, documenting a secret project for American arms sales to the ongoing Iran since 1984.
Brenneke later stated publicly at the beginning of 1986, he called Menarczik to warn that he learned that the United States planned to buy weapons for the Contras with money from Iran arms sales. Menarczik said: « we will look into it. « Asserted Menarczik not having » every memory summary of telephone conversations with « Brenneke.@s5@s4
Late February, 1986:
Vice President George Bush released the report of the Working Group of its terrorism. In his introduction to the report, Bush said: « our working group informed more of 25 government agencies… went to embassies and military commands around the world… Our conclusion:… We oppose terrorism in all its forms and everywhere where it takes place… We will make no concessions to terrorists. « @s5 @ s5
According to an affidavit sworn by the pilot Michael Tolliver, Felix Rodriguez had met in July 1985. Now, Rodriguez appointed Tolliver to the Miami International Airport. Tolliver picked up a DC-6 aircraft and a crew and flew the aircraft to a base of Contra to the Honduras. It Tolliver looked 14 tons of military equipment unloading and loading of the 12 and 2/3 tons of marijuana. Following his order of Rodriguez, Tolliver stole the dope at Homestead Air Force Base in Florida. The next day, Rodriguez paid the $75,000.@s5@s6 Tolliver
Tolliver said that either of the flights he played for Rodriguez transported cocaine on the return trip to the United States. He made a series of deliveries of weapons in Miami air base at Agucate, in the Honduras. He was paid in cash by Rodriguez and his former Miami CIA colleague, Rafael ‘Chi Chi’ Quintero. In another circuit of flights, Tolliver and his crew flew between Miami and the El Salvador the Ilopango air base. Tolliver said that Rodriguez and Quintero « asked me where to go and who to see. « While these flights, he » could pass through all available channels without any interference from any agency. There is no need of a seal of approval from customs or any person… « @s5 @ s7 regards the covert arms shipments out of Miami, son of George Bush, Jeb said: » of course, there is enough good chance that weapons have been shipped, but that violates any law? I’m not sure that it’s illegal. The law on neutrality is a concept completely tested, put in place in the late 1800s. « @s5 @ s8
Smuggling Missiles and Reporting to the boss
Traffic of lethal weapons without permission from the Government, it is always a delicate matter for the covert operators. But when co-operatives are smuggling weapons in a particular circulation that Congress has expressly prohibited, much of the criminal expertise and some crucial contacts are necessary to succeed. And when smugglers relate to the Vice President, who holds his role to remain hidden, this can become very sticky – or even ridiculous point small comedies.
March 26, 1986:
Oliver North has sent a message to Robert McFarlane on its efforts to procure missiles to the Contras and to bypass several U.S. laws and customs and the police forces of several countries. The component the most significant of these operations, set apart from the purchase price, was a falsified document, showing the supposed recipient of weapons, the end-user certificate (EUC). In the message he wrote, the North said that » We have » a EUC; i.e., a false document was acquired for this sale of arms: « [N] ous are trying to find a way to get 10 BLOWGUN launchers and 20 missiles [a South American country]… through the Rep short Bros… Short Bros., the mfgr. the Blowgun is willing to arrange the deal, conduct training and even send U.K. ‘representatives Tech.’ … If we can close the agreement. Dick Secord has already paid 10% down on shipping and we have a [deleted country] EUC which is acceptable in the [South American countries]. « @s5 @ s9 now, since this particular illegal sale somehow updated in the Iran-Contra scandal, another participating in this agreement decided not to hide his own part in it the penalty. Thus, we are able to see how the Colonel North got his fake certificate.
April 20, 1986:
Felix Rodriguez met at San El Salvador with Oliver North and Enrique Bermudez, military commander of the Contras. Rodriguez informs us of what follows in his own book ghost-written:
« Shortly before the 20 April meeting, Rafael Quintero, had asked me to impose my good relations with the Salvadoran army to obtain certificates of »end-user »taken Lake Resources, which he has been a Chilean company… « @s6 @ s0
The plan was to acquire false certificates of his contacts in the Salvadoran armed forces of Blowpipe surface-to-air missiles allegedly shipped to El El Salvador. The missiles would then be illegally diverted to the Contras to the Honduras and the Nicaragua. Rodriguez continues, with auto-esbroufe: « Salvadorans conforms to my request, and in turn, I’ve provided certificates, personally deliver to Richard Secord at this meeting April 20. « @s6 @ s1 through counterfeiting for the sale of ammunition, Rodriguez has been in contact with the staff of George Bush in his office at home. April 16, four days before the meeting of missiles North-Rodriguez, Donald Gregg Bush national security adviser has asked his staff to a meeting with Rodriguez the timing of George Bush. Gregg said the end of the meeting of the White House would be « to inform the Vice President on the war in El El Salvador and resupply of the Contras. « The meeting was held at 11:30 on May 1.@s6@s2 Due its explicitly stated purpose – clandestine arms in an undeclared war against the prohibition of rigid Congress – the scheduled meeting was to become one of the most notorious of the Iran-Contra scandal.
April 30, 1986 (Wednesday):
Felix Rodriguez met in Washington with the help of Bush the colonel Sam Watson.
The following reminder was sent to George Bush:
Explanatory memorandum for Vice President
Event: Meeting with Felix Rodriguez
Date: Thursday, may 1, 1986
Time: 11:30-11:45 – West Wing
From: Don Gregg
Félix Rodríguez, an expert of counter-insurgency who visited from El Salvador, will provide a presentation on the State of the war in El El Salvador and the replenishment of the Contras.
III. [sic] PARTICIPANTS
The Vice President Felix Rodriguez
IV MEDIA COVERAGE.
Staff photographer. [i.e. use internal photographs, no media coverage]@s6@s3]
May 1, 1986:
Vice President Bush and his staff gathered in the white with Felix Rodriguez, Oliver North, financier Nicholas Brady House and the new American at the El Salvador Ambassador, Edwin Corr.
At this meeting, it was agreed that « simple citizen » Felix Rodriguez will continue his work in Central America.@s6@s4
May 16, 1986:
George Bush met President Reagan, as well as members of the cabinet and other officials in the comprehensive planning group on national security. They discussed the urgent need to raise more money for the Contras continue the anti-Sandinista war.
The participants agreed to request support for the Contras of countries (« third countries ») who were not directly involved in the conflict in Central America. Through this initiative, former partners of George Bush, the Sultan of Brunei, has donated $10 million for the Contras. But after be deposited in secret Swiss bank accounts, the money was « lost. « @s6 @ s5
May 20, 1986:
George Bush met with Felix Rodriguez and El El Salvador Air Force Commander general Juan Rafael Bustillo, at a large reception in Miami on independence Cuban day.@s6@s6
May 29, 1986:
George Bush, President Reagan, Donald Regan and John Poindexter met to hear McFarlane and North on their recent negotiations of arm-de-hostages with Amiram Nir and Iranian officials in Tehran, Iran. Both signaled their agreement with the Khomeini regime to establish a network secure secret communication between the two governments.@s6@s7 ‘enemy’
July 10, 1986:
Eugene Hasenfus, whose successful parachute landing was going to explode the Iran-Contra scandal in world newspapers three months later, flew from Miami to El El Salvador. He had just been hired to work for « Southern Air Transport, » a company CIA for which Hasenfus formerly worked in the Indochina war. In a few days, he was introduced to « Max Gomez » – the pseudonym of Félix Rodríguez – as « one of the coordinators of the Cuban society. « Rodriguez (« Gomez ») led to the office for security of the Ilopango air base where he and others involved with him were given identity cards. Now, he began working as a stevedore on flights carrying military supplies to Contra soldiers inside the Nicaragua.@s6@s8
July 29, 1986:
George Bush met at Jerusalem terrorism Task Force member Amiram Nir, the Director of the participation of Israel in the arm-for hostages plans. Bush did not this meeting know. The Vice President said his Chief of staff, Craig Fuller, to send his notes of the meeting that to Oliver North – not for President Reagan, or to someone else.
Memorandum of Craig Fuller said, in part:
1. SUMMARY. Mr. Nir indicated that he had informed Prime Minister Peres and his contacts from the White House requested to inform the V [ice] P [resident]. He described the details of the efforts of the year last through the current period for the release of the American hostages. He reviewed what had been learned that was essentially that the radical was the group that could bring. It considered the issues to consider-in whether ad [sic] decision as to whether the requested items would be delivered in separate shipments or that we would continue to insist on the release of the hostages prior to delivering the elements of an amount previously agreed.
2 meeting of 25 minutes of the VP was arranged after Mr. Nir called Craig Fuller and requested the meeting and after it has been discussed with the VP by Fuller and North…
14 Nir described some of the teachings: « we deal with the more radical elements… ». They can deliver… it sure… [W] e have learned, they can deliver and the can’t…@s6@s9 moderate
July 30, 1986:
The day after their summit meeting in Jerusalem with Amiram Nir, Vice President Bush conferred with Oliver North. This encounter with the North has never recognized by Bush until Northern logs have been released in May 1990.
Beginning September, 1986:
Retired Army Maj. Gen. John K. Singlaub has sent a memo to Oliver North on replenishment Contra under Felix Rodriguez effort. Singlaub, warned North Rodriguez boasted of having daily « in contact » with the Office of George Bush. According to Singlaub, this could « damage President Reagan and the Republican party. « @s7 @ s0
The scandal breaks – on George Bush
October 5, 1986:
A C – 123 k cargo plane, departed the Ilopango air base of the El Salvador at 9:30, carrying « 10,000 small arms and ammunition, books consisting mainly of rifles AK and AK ammunition, hand grenades, jungle boots. « It was planned to make the air drops Contra soldiers in Nicaragua.@s7@s1 the flight was organized by elements of the CIA, the defense Department and National Security Council, coordinated by the Office of Vice President George Bush. At this time, the weapons of replenishment is prohibited under U.S. law – prohibited by law which was written precisely to avoid this type of flight. The aircraft south along the Pacific coast of the Nicaragua, is recovered from Costa Rica, then headed north in the airspace of the Nicaragua. As he descended to the point where he had to drop the cargo, the aircraft hit the wing and right engine by a ground-to-air missile. The wing ignite and broke. Warehouseman Eugene Hasenfus jumped out the left cargo door and opened his parachute. The three other crew members died in the crash.@s7@s2 at the same time, Felix Rodriguez made a single phone call – to the Office of Vice President George Bush. He said aid Bush Samuel Watson that the C – 123 k aircraft had disappeared and was probably out.
October 6, 1986:
Eugene Hasenfus, armed with a pistol, took refuge in a small cabin on a hill in the jungle inside the Nicaragua. He was soon surrounded by Sandinista soldiers and engaged up.@s7@s3
Felix Rodriguez still called help George Bush Sam Watson. Watson has today notified the White House room and the staff of the National Council of security on the missing aircraft.
Oliver North was immediately sent to the El El Salvador to prevent publicity about the event and to organize for the crew.@s7@s4 death benefits
After killing him, government agencies have made several attempts developed to provide false explanations for the origin of the aircraft.
An account of press later, appearing on May 15, 1989, after Bush has been installed safely as President, exposed to such an attempt concealment:
Official: Contras Lied to protect Bush VP
By Alfonso Chardy, Knight-Ridder Newspapers
WASHINGTON – The Nicaraguan rebels falsely assumed responsibility for a plane loaded arm that crashed on the Nicaragua in 1986 to protect then Vice President George Bush of the controversy that soon blossomed in the scandal Iran-Contra, a senior official of the Contras said at the beginning of May 1989. According to the head of the Contra, who requested anonymity, but has direct knowledge of the events, a spokesman for the Contra, Bosco Matamoros [official FDN representative in Washington, D.C.], has been ordered by the [political Director FDN] Adolfo Calero to claim ownership of the aircraft on the ground, although the aircraft belonged to the secret network of Oliver North supply Contra…] Calero called (Matamoros) and said: « take responsibility for the Hasenfus plane because we take the heat off the Vice President », said the source of Contra… The official Contra said that shortly after that Calero talked to Matamoros, Matamoros called a New York Times reporter and « leaked » the false claim of responsibility. The Times published a story about the claim on his forehead page.@s7@s5
October 7, 1986:
Rep. Henry B. Gonzalez (D – Tx.) demanded an investigation of the Congress on the airplane crash of the Nicaragua and the plane crash of Southern Air Transport in Texas, to see if they were part of a CIA operation to overthrow the Nicaraguan Government of covert.
October 9, 1986:
During a press conference at the Nicaragua, Member of the American crew captured Eugene Hasenfus exposed Felix Rodriguez, alias « Max Gomez, » the head of an international logistics system for the Contras. The explosive phase of the Iran-Contra scandal had begun.
October 11, 1986:
The Washington Post ran two headlines-by-side: « American Flyer captured to be judged at the Nicaragua »and »Bush is linked to the head of the Contra support network. « The Post reported:
When asked about these issues, a Bush spokesman, Marlin Fitzwater, said: « Vice President nor anyone on his staff is lead or coordinate an operation in Central America. » …
The San Francisco Examiner, which earlier this week linked [Adviser to Bush Donald] Gregg Gomez, reported that Gomez maintains daily contact with the Bush Office…
[M] embers of the Congress said yesterday that they wanted to investigate the conduct of the administration more. And… Several said that their attention shifted from the CIA to the White House…
[T] he crash of Sunday will be among the events covered by a probe of the Commission of Foreign Relations [Senate] claims that the contras likely to be involved in drug trafficking and the abuse of aid funds to the United States, [Senator Richard G.] Lugar said…
The Customs Service said yesterday that he studied if the plane shot could carry guns out of Miami, which would be a violation of Federal restrictions on the export of arms and other laws, including the law on neutrality, which bars American citizens to work to topple Governments not at war with the United States…
Hasenfus told journalists at the Nicaragua, the aircraft had flown on Miami.@s7@s6
Career of George Bush was now on the line. News in the world media broke the story of the capture of Hasenfus and the fingering of the Bush crew and his underlings Rodriguez and Posada Carriles. Bush is now besieged by requests from around the world, find out how and why he was directing the traffic of weapons to Latin America. Speaking in Charleston, South Carolina, George Bush has described Max Gomez/Rodriguez as « a patriot. « The Vice President denied that he headed the illegal operations to provide the Contras: » to say I’m running the operation… is absolutely false. » De Rodríguez, Bush said: » I know what he was doing to the El Salvador, and I support strongly, as does the President of El Salvador, Mr. Napoléon Duarte, and just as the head of the armed forces in El El Salvador, because this man, an expert in counterinsurgency, was down there helping them subdue a Communist-led revolution [i.e. in El El Salvador not Nicaragua]. « @s7 @ s7
Two days later, Gen. Adolfo Blando@aan, armed forces Chief of staff at the El Salvador, denied forces of restraints of Bush that Felix Rodriguez worked for the army of his country: « what intrigues me. It will have to be authorized [by our] Chief of staff [and] Government. « He said that this permission was not given.@s7@s8
October 12, 1986:
Eugene Hasenfus, the American airman who crashed in Nicaragua, gave and signed an affidavit in which it says: « about Max Gomez [Felix Rodriguez], Hasenfus writes that it was the Cuban Chief Coordinator for the company and that he worked for the CIA and that it is a very close friend of the Vice President of the United States, George Bush… Max Gomez, after receiving his orders was one who was… [say] where air drops would be held.
About Ramon Medina [breakaway airplane bomber Luis Posada Carriles], Hasenfus wrote that he was also a CIA agent and that he did « little work » because Max Gomez was ‘senior man.’ He said that Ramon took care of the rental of houses, servants, food, transport and drivers and also coordination of fuel for aircraft, etc. « [emphasis in the original].@s7@s9 his cover is blown, and knowing he was still wanted in the Venezuela to blow up an airliner and killing 73 people, Posada Carriles now »disappeared »and is gone underground.@s8@s0]
19 October 1986:
Eugene Hasenfus, interviewed at the Nicaragua by Mike Wallace on the CBS show « 60 Minutes », said that Vice President Bush was aware of the operation of secret weapons supply. He felt that the Reagan-Bush administration was « supporting this 100 percent. « Wallace asked Hasenfus why he thought Gomez/Rodriguez and other managers of the replenishment of the secret weapons » had the blessing of Vice President Bush. « Hasenfus replied: » they had knowledge that it was working [top] and what was happening, and one who controls this whole organism – which I know not – M. Gómez, Mr. Bush, I think that a lot of these other people. They know how this is handled. I do. « @s8 @ s1
Iran-Contra characters fall in and out
November 3, 1986:
The Lebanese newspaper Al-Shiraa revealed that the U.S. Government was secretly arm on the Khomeini regime. It was three weeks after l’expose@aa Eugene Hasenfus from George Bush made the world headlines. Yet the Bush administration and his vassals have decided since that case Iran-Contra « began » with the story of Al-Shiraa !
November 22, 1986:
President Reagan sent a message by Vice President George Bush, to Secretary of State George Shultz, along the lines of « I support or get off my team. « @s8 @ s2
December 18, 1986:
Director of the CIA William Casey, a close ally of George Bush, who knew all of the Interior, was operated on for a brain tumor « » and lost the power of speech. The same day, Associate Vice President George Bush believes that Bush, Chief of staff of the White House Donald Regan should resign, but request Bush had not yet addressed the issue with the President. Donald Regan said that he did not intend to quitting.@s8@s3
February 2, 1987:
CIA Director William Casey resigned. He died soon, literally without ever talking.
February 9, 1987:
Former National Security Robert McFarlane, a main character in the secret operations of the Reagan-Bush administration, tried to commit suicide by taking an overdose of drugs. McFarlane survived.
February 26, 1987 (Thursday):
President special review board, commonly known as the Tower Commission, issued its report. The commission strongly blamed Chief of White House Donald Regan for « the chaos that descended upon the White House » in the Iran-Contra affair. The barely mentioned Commission vice-president George Bush except to praise him for his « strong reaffirmation of the US opposition to terrorism in all its forms »! In the afternoon, that the Tower Commission’s report was released, George Bush called Donald Regan at his office. Bush said that the President wanted to know what his plans on his resignation. Donald Regan has lashed out at the President: « what is the question – is not enough man he asking me this question? « Bush expresses its sympathy. Donald Regan said he would leave in four days.@s8@s4
February 27, 1987 (Friday):
Cable News Network broadcast a leaked report that Donald Regan had already been replaced as Chief of staff of the White House. After having submitted a letter of a sentence of resignation, Donald Regan said, « there was a deliberate leak, and it has been done to humiliate me. « @s8 @ s5
George Bush, when President, awarded by the commission Chairman, Senator of Texas John Tower, as U.S. Secretary of defense. Tower was asked by a journalist at the National Press Club, if his appointment was a « reward » for ‘health’ that he gave to Bush. Tower replied that « the commission was composed of three persons, Brent Scowcroft and [Senator] Ed Muskie in addition to myself, that would be way to attack the integrity of Brent Scowcroft and Ed Muskie… We found nothing to involve the Vice President… I wonder what kind of reward they will get? « @s8 @ s6 President Bush Brent Scowcroft has appointed its responsible for national security adviser. But the Senate refused to confirm the tour. Tour and then wrote a book and begins to speak of the injustice done to him. He died on April 5, 1991 in a plane crash.
March 8, 1987:
In the light of the Iran-Contra scandal, president Reagan asked George Bush to reconvene its Terrorism Task Force to assess the ongoing programme!
June 2, 1987:
Bush summarized his findings in a press release: « political [O] your current as stated in the report of the Task Force is strong, effective and fully in accordance with our democratic and national principles ideals of freedom. « @s8 @ s7
November 13, 1987:
The designated committees of Congress have tabled their joint report on the Iran-Contra affair. Representative of Wyoming, Richard Cheney, the Republican Dean of a Commission to investigate Covert with the Iran arms Transactions, helped guide the joint committees for a helpless outcome. George Bush has been totally exonerated and were barely mentioned.
George Bush, then President, awarded Dick Cheney as American Secretary of defense, after the Senate refused to confirm John Tower.
The Mortification of the U.S. Congress
January 20, 1989:
George Bush was inaugurated President of the United States of America.
May 12, 1989:
Appointment of the President Bush of Donald Gregg to be Ambassador of the United States in Korea was included in the hearings of the Senate Foreign Relations Committee.
Gregg was now famous in Washington as a criminal Bush daily controller the arms trafficking in Central America. Before the commencement of the hearing of Gregg, Republican and Democratic Senators on the Committee were trying to get President Bush to withdraw the nomination of Gregg. It was to save them the embarrassment of confirmation of Gregg, knowing that they were too intimidated to stop it.
The following are excerpts from the typewritten transcript Gregg hearings. The transcript has never been reproduced, it has not been printed, and it will not be published by the Commission of Foreign Affairs of the Senate, which is clearly embarrassed by his contents.@s8@s8
Gregg: [that] his Adviser to national security [for] six and a half… I worked closely with the Vice President keep informed at best on issues of foreign policy, defence and intelligence… Traveling with the Vice President, as I have done… [in] a wide variety of missions in more than 65 countries… [After the Viet Nam] I have not seen [Felix Rodriguez] until the early 1980s where he would pass in Washington sporadically… we stayed friends… Thus, some of these contacts would have been [1979-1982] when I was in the White House in the NSC.
Senator Sarbanes: Felix and would find you?
Gregg: No, my home… [Then] he brought me in 83 the plan that I have already discussed with Senator Cranston… [At this time] I was working for Vice President… [I started in] August 1982.
Senator Sarbanes: in December 1984, he came to see you with the idea to go to El El Salvador. You… He erased with the Vice President?
Gregg:… I just said, ‘ my friend Felix, who was an employee of the former agency remarkable… wants to go down and help with El El Salvador. And I’ll introduce you to him [the State Department staff] and see if he can sell to these men, « and the Vice President has said very well.
Gregg: Felix went there on the first of March . Before he went… I submit… the Vice President and the Vice President was struck by his character and wished him well in El El Salvador.
Senator Sarbanes: so before you go down, you have undertaken to present him the Vice President… Why did you do that?
Gregg: well, the Vice President had always spoken very strongly and enthusiastically of his career [!], or his one year as DCI [Director of Central Intelligence]. I had out with him to the Agency just after, I joined him in 82 and I’ve seen tremendous response, that he got there and he got quite muffled upwards in this regard and we were driving in the car, that said, you know, it’s the best job I had before becoming Vice President. Here, it was, as I said probably the most extraordinary fellow CIA that I had known, who came down to help in a country that I knew that the Vice President was interested by… Vice President was interested in the progress of the Contras. There are two occasions on which he has asked me, how they are doing and I, once went to a CIA agent who was aware and got a run-down on how they did this and sent the Vice President and he sent him with no comments. On another occasion, he asked me yet again, how they do, and I am gone – I wrote a memo, I think that on the basis of a conversation with the North. Yet once, who returned with no comment. So he was interested by the Contras, as an instrument of pressure on the Sandinistas. But what I said that we had never discussed was the subtleties, or who provided what to whom…
Senator Simon: I would like to read another article of the declaration of Senator Cranston. In my opinion, the record indicates the following happened: after Boland II was signed in October 1984 [banning any U.S. aid to the Contras], you and others at the White House have been encouraged to provide military assistance for the Contras rather unorthodox way. Your career training in the secret establishment and denial for covert operations, your old friendship of decades for Felix Rodriguez, apparently leads you to believe that you can serve the national interest by sponsoring a freelance secret operation outside the Vice Presidency. What is your response to this statement?
Gregg: well, I think that’s a rather full conspiracy theory. This was not what I was doing… I had to help the task force of the Vice President of counter-terrorism measures to prepare their report. But normally I have no operational responsibility…
Senator Simon: When did you first found out that the law has been violated?
Gregg: By law, do you mean the Boland Amendment?
Senator Simon: that is correct.
Gregg: I guess that my knowledge of this sort of is come to me piecemeal after Hasenfus was shot [October 5, 1986] and there were various revelations that came out…
Senator Simon: so what you tell us,’ve discovered you on the right violated the same time that the rest of us have discovered that the law has been violated?
Gregg: Yes, Mr President…
Senator Cranston: February 1985 to August 1986, you have acknowledged that you spoke to Rodríguez, many, many times on the phone. Let me quote your deposition under oath to the Committee Iran – Contra: « Felix called me pretty often and frequently, this is what I would call the catharsis kind of combat. He used to do the same thing to the Viet Nam. He was returning from an operation in which some people had disappeared, and he said to me on this subject. « Now, is it still your testimony that Rodriguez has never mentioned his deep involvement in procurement Contra during one of these conversations?
Gregg: That is my testimony.
Senator Cranston: is it still your testimony that before August 8, 1986, Rodriguez has never mentioned the State of efforts to supply Contra during his numerous meetings face to face with you in Washington?
Senator Cranston: is it still your testimony that Rodriguez did not mention the status of its efforts to supply Contra in the very meetings that have been organized according to two memos with your name, Rodriguez to « inform the Vice President on the State of the war in El El Salvador and efforts to resupply the Contras »?
Gregg: It there was no intention to discuss replenishment Contras and everyone at this meeting, including former Senator Nick Brady testified that it was not discussed.
Senator Cranston: as you know, it is difficult to reconcile these statements about what happened at the meeting with the statement and memos on your part, the order of the day was… two things, one of them being efforts to resupply the Contras…
Gregg: These memos surfaced first to my attention in December 1986, when we began our first search for the Vice Presidency document. They hit me pretty hard because by this time I had put the pieces together of what had been ongoing and I realized the implications of this issue. I do not shred documents. I do not hide that he… [T] is the worst thing that I have found and it is here, and I can’t really explain it… I have a speculative explanation which I would like to submit if you would be interested.
Senator Cranston: Fine.
Gregg: Yet again, regards book Felix [Rodriguez]… Felix is the following quote… [By the way in which the Book] will be released in October this year. The text has been cleared by the CIA, and it is now with the publishers. I was given an advance copy… It’s the quote, Mr President: ‘… I have had no qualms about calling [Sam Watson] or Don [Gregg] when I thought they could help run interference with the Pentagon to accelerate deliveries of spare parts chopper. « This means helicopters. « I have made many such calls in the spring of 1986. Without helicopter Hughes 500 operations, it was impossible to realize my strategy against the insurgents [El Salvador]… « [Is] then documented the measures taken by Colonel Watson with the Pentagon to try to get the parts accelerated for El El Salvador… My build is therefore that, Mr President. I remember that at the meeting with the vice-president of the issue of spare parts for helicopters in the El Salvador has been discussed and I think what is the point of the agenda on the two memos, is a reference scrambled to something like the re-supply of the copters, instead of fuelling Contras [this is emphasis added]. [At this point there are laughter and whistles in the hearing room.] Subsequently, Gregg told reporters, « I do not know how it happened, but it was the best I could do. »]
Senator Sarbanes: How did the scheduling of 16 April 1986 proposal and the Backgrounder of April 30, take place?
Gregg: They have been prepared by my assistant, Ms. Byrne, acting on the advice of Colonel Watson. She signed my initials, but those are not my initials. I did not see the documents until December 1986, when I called them the attention of the House Intelligence Committee… And if, you know, if you don’t – if my speculation does not, I refer to a memorandum which I delivered on 14 May 1987, the Commission of the Iran-Contra that-
Senator Sarbanes: I am now looking to this memorandum.
Gregg: Okay. This was my explanation so far.
Senator Sarbanes:, but now you provide a different explanation?
Gregg: It’s the one – I thought these documents for more than two years, and this is the only thing that I can get to that comes nearby explaining this issue – has held that it did not intend to discuss supply to the Contras. This refuelling of the Contras was not, according to the testimony of all those who were at the meeting… »
Senator Kerry: Douglas Minarczik is who?
Gregg: It was one of my assistants in my office of Middle-East and Africa Affairs…
Senator Kerry: and it has worked for you in 1985 and 1986, this period?
Senator Kerry: now, when I started first investigate allegations of arms trafficking that took place in Miami, one of the earliest references than my staff, frankly, frequently heard, and I think that you and I have talked about this, that that Miami was abuzz with the notion that the Vice Presidency was somehow involved in the follow-up , at least [this is emphasis added]. However, Jesus Garcia was an official of corrections from Miami who got into trouble and ended up going to jail on weapons offences. Thanks to this regard, we met with telephone records. And these telephone records show calls from the House of Garcia Contra camps in Honduras, John Hull in Costa Rica and Douglas Minarczik, not necessarily in your office, but directly to the White House. However, there is irrefutable proof that he had in his possession on behalf of Mr. Minarczik, a piece of paper in our possession, in Garcia home monitoring of these paramilitary operations in August 1985. Now, how do you explain the fact that Minarczik – that people involved with the Contra supply… operations out of Miami has had a Minarczik name and phone number, so there is a record of calls to the White House at this time?
Gregg: I can’t realize. It might have something to do with our old friend, Mr. Brenicke [sic]? Because Brenicke had Minarczik telephone number…
Senator Kerry:… No totally separate.
Gregg: It is very new. I don’t have an explanation, Mr President…
Senator Kerry: do you remember the destruction in flight of a Cuban airliner in  where 72 people perished as a result. you remember that?
Senator Kerry: A terrorist bomb. And a Cuban-American by the name of Luis Posada [Carriles] was arrested in the Venezuela that. He then escaped in 1985 with the help of Felix Rodriguez – I do not know if this is going to be in the book [Rodriguez] or not…
-Gregg: It is.
Senator Kerry: Okay and he brought him to Central America to help the Contras under the pseudonym of Ramon Medina, correct? Gregg: Now, I know that; Yes.
Senator Kerry:… [Is] it appropriate for a Felix Rodriguez help a man charged in an attack terrorist escaped from prison and then appropriate for him to be involved in supply operations, we support?
Gregg: I can not justify this, Mr. And I do not know what role of Felix in him out… I thought that Orlando Boche [sic], or a person of this kind, had been responsible for this.
Senator Kerry: When did you first learn that [i.e. of Posada hiring for replenishment Contra], Don?
Gregg: When I learned that were the various aliases, that was some time in November/December , after that everything came out.
SESSION OF THE COMMITTEE 15 JUNE 1989
Senator Cranston: before proceeding in this matter, I would like to make clear for the record that the main objective of this investigation is on and in my opinion it is not everything. It is not about who is for or against the Contras… Similarly, this survey is not to construct or demolish our new president [Bush]. We have tried throughout this proceeding to avoid partisan attacks. Indeed, the Republicans and Democrats as searched for Mr. Gregg withdrawal as a way to avoid the calumnies of the [Bush] White House casting… [it is emphasis added].
Mr. Gregg remains unwavering in his loyalty to his boss, then Vice President Bush and his long-time friend date, Felix Rodriguez. Mr. Gregg has served his country in foreign policy for more than three decades. Obviously, he is a loyal American… As Mr. Gregg himself admitted last month, there are substantial reasons for Senators to suspect his version of the facts and to question his judgment. It does not take a suspicious mind or supporter to examine supporting documents, back-channel cables, memos « eyes only », and then to conclude that Mr. Gregg has not been directly with us. Indeed, I am informed that more than one Republican Senator, who has reviewed the accumulated weight of evidence against Mr. Gregg, remained skeptical, and called for the withdrawal of Mr. Gregg.
Mr. Gregg, this Committee has a fundamental dilemma. If we want to promote a man we believe have misled us under oath, we would laugh at this institution. We invite contempt for our inquiries. We would encourage the frustration of our constitutional obligations. … [It] has been established that when you’re faced with written proof undermine your story, you point the finger elsewhere. At our last hearing you said Gorman cables were wrong, Northern books were bad, memory of Steele was wrong, sworn testimony of North [Gregg Rodriguez introduced him] was wrong, you concocted a theory that yours, Watson, your Secretary and committed an error in writing « Contras » instead « helicopters » on these briefing notes infamous for Vice President. In short, you told a tale of a complex plan in which longtime friends and colleagues conspired to keep you ignoring crucial facts during the days of meetings, monthly telephone calls and almost two years value of cables and memos. Incredibly, when Senators confront you with supporting documentation that infringes on your story, you accuse concoct us the conspiracy theories and you do it with a straight face. … I think it is clear by now that many important issues can never answer satisfactorily, in particular because we have been stonewalled by the administration. The National Security Agency has rejected our legitimate requests to at the outset. The Central Intelligence Agency responded with… as laughable being so severe access restrictions. The Defence Ministry gave an unsatisfactory answer to two days late. The Department of State’s response was totally insensitive. They responded to our letter after the date limit and failed to produce specific documents, we have asked and we know that there is. This Committee was stonewalled by Oliver North, too. He has not respected with the assignment of the Committee for his notebooks unredacted. The redacted contain repeated references from January 1985 to Felix Rodriguez, who suggests the involvement of the North in Rodriguez ‘ briefings for the Vice President. No member of the Senate cannot escape the conclusion that these actions of the administration are contemptuous of this Committee. I find this very unfortunate, with ramifications in the long term potential, but I recognize the will of the majority to come a vote in Committee, soon, upwards or downwards and move to other pressing business [it is emphasis added]…
Senator McConnell:… During the period of the Boland Amendment, you were never asked to inform the Office of the vice-president and lend his name to private efforts at goal non profit to support the Contras?
Gregg: Yes. I remember a case, in particular, where there was a demand – I guess that is probably one of the aspects of the organization by Channell Spitz, who had a variety of things happening in and around Nicaragua. We arrived, on 2 December 1985, a letter to the Vice President, asking him to get involved in what is called the friends of the Americas, which was assisting the Indians Meskito… to the Nicaragua that had been severely ill-treated by the Sandinistas… And so, I have here a document that shows how we have dealt with him. I sent to Boyden Gray, the Adviser of Vice President and says: « Boyden, seems to be correct as a matter of charity, but there is the question of the previous. Please give me a legal opinion. Thank you. » … Boyden Gray has written a letter to me and said: ‘no, should not do. Raises questions about the indirect circumvention of the limits of financing of the Congress or restriction, Nicaragua screws screws. « This is the only time where I remember that we had a specific request like that, and this is how we have dealt with him. [In fact, George Bush had a much more interesting relationship for Affairs of Channell Carl R. « Spitz » that Mr. Gregg discussed here.] Channell has worked with device for covert actions of Bush, moving its rich contacts to what he called « the total embrace of the Vice President. »]
Senator Pell [Chairman of the Committee]:… Firstly, you say that you offered to resign twice, I think. Knowing that you are a very faithful servant that you display in the national interest, and knowing the embarrassment that this appointment has caused the administration, I was wondering why you did not request your name be removed… to withdraw your name… [w] which has been recommended by many of us as being a way to solve this problem.
Gregg: well, I did not because I think that I am fully qualified to be Ambassador to South Korea. And thereby the Vice President [sic]. So, I’m here because he asked me to serve…
Senator Cranston:… Honourable senators will recall that on 5 October 86 a plane carrying military supplies to the Contras was shot down over the Nicaragua. The sole survivor, Eugene Hasenfus, spoke publicly the role of Felix Rodriguez, aka Max Gomez, to help the military resupply and emphasized the links of Gomez to the Vice Presidency. Could you please describe your understanding of why it is that the first call to official Washington about the shootdown was Felix Rodriguez your help [e] in Washington?
Gregg:… [He] was because June 25 of the same year, he came to Washington to deal with the North that he considered corruption in the procurement process of the Contras… [H] e breaks with North on 25 June and did not speak the words with the man since then… [H] e has tried to make me-, he couldn’t – it reached the Colonel Watson…
Senator Cranston: as you recall, the vice-president was besieged at the time with the inquiries regarding the links of Rodriguez to the Vice Presidency. What have you said [spokesperson Bush] Marlin Fitzwater concerning this relationship?
Gregg:… The thrust of the press enquiries has always been that from the beginning, that I had in mind that Rodriguez should play some role in supporting Contra operation and my comments at Marlin… were that that was not in my mind…
Senator Cranston: Let quote me again the New York Times, George Bush has cited 13 October 86. Bush said, « to the best of my knowledge, this man, Felix Rodriguez, does not work for the Government of the United States. « Now, Mr. Gregg, you knew that Rodriguez was helping the Contras and receiving material assistance in the form of cars, housing, communication and transport of the U.S. Government material. Inform you Bush of these facts, so that it could make misleading statements calculated in the dark about the activities of its staff?
Gregg:… At that time I had no idea that Felix – you said – you mentioned the communications equipment. I had no idea that he had been given by North one of these encryption devices. I think that I did not know that the Colonel Steele gave him access to a car, and I knew that he lived in a BOQ at the airbase. He was not receiving any salary. His main source of income is, at this moment, his pension from the CIA.
Senator Cranston:… You said that you never discussed Bush Contras, had no expertise on the subject, no responsibility for it and the details of the Watergate scandal size involving NSC staff and [Edwin] Committee of the Iran-Contra gang of Wilson was not Vice Presidential. Your testimony on this point that I think is manifestly untrue. There are at least six notes of Don Gregg to George Bush on issues detailed contra…
Sen Cranston: Am I correct that you have confirmed… the U.S. Army senior, diplomatic… and employees, really watched with great doubt on the mission of Rodriguez and what he tolerated only because Rodriguez has used its contacts with the Vice President and his staff in the context of how to strengthen its mission.
Gregg:… I was not aware of the diplomatic; I was aware of the military and intelligence, Yes, Mr President.
The Committee voted in favor of confirmation. Vote not Cranston. But three Democrats – Charles Robb, Terry Sanford and Chairman Claiborne Pell – joined the Republicans. Sanford has confirmed the point of view of Cranston, saying it allowed the nomination to move because he feared that « the path would lead to Bush, » the new president. Sanford said, coyly, « If Gregg had lied, lied to protect the President, which is different from lying to protect themselves. « [Emphasis added]@s8@s9
Within the Government of George Bush, the one-party State, the knives came out soon and the price appeared. The Senate Ethics Committee, including the shameful Terry Sanford started in November 1989, his attack on the « Keating five. « It was US Senators, including Senator Alan Cranston, charged with corrupt savings and loan. The attack soon reduced to a target only – the Iran-opposite Senator Cranston. August 2, 1991, Senator Terry Sanford, who have forgotten its shame, has as the new Chairman of the Senate Ethics Committee.
1 William Shirer L., The Rise and Fall of the Third Reich: a history of Nazi Germany (New York: Simon and Schuster, 1960), p. 271.
2. the memorandum, 14 May 1982, pp. two bearing the our 29464 and 29465. See also « SDDS – 2 Structure for Central America, » wearing No. 29446, a chart showing the GSB and its CPPG as an agency of advice for the National Security Council.
3 testimony of Donald P. Gregg, pp. 72-73 in stenographic transcript of hearings before the US Senate Committee on foreign policy, the hearing’s nomination to Donald Phinney Gregg to be Ambassador of the Republic of Korea. Washington, D.C., may 12, 1989 (hereinafter referred to as « Gregg hearings »). This transcript is available for reading in the Office of the United States Senate Committee on foreign on Capitol Hill, in Washington, D.C. see also Felix Rodriguez and John Weisman, Shadow Warrior (New York: Simon and Schuster, 1989), pp. 213-14. The book was ghost written – and the spook-approved by the CIA and Donald Gregg before publication.
4. report of the survey on the committees of the Congress the Iran Contra Affair (hereinafter referred to as the « report of the Iran-Contra »), published jointly by the United States House of representatives Select Committee to investigate Transactions of weapons of Covert with the Iran and the U.S. Senate Select Committee on Secret Military Assistance to the Iran and the Nicaraguan Opposition, November 17, 1987, in Washington D.C., pp. 395-397. Note that the different sections of the Iran-Contra congressional report have been published on different dates.
5. CovertAction, n ° 33, winter 1990, p. 12; tire of a Public of Fawn Hall, report of the Iran-Contra testimony, June 8, 1987, p. 15.
6 submissions and meetings from March 1983 to the « National Security Archive’ Iran – Contra Collection on microfiche at the library of Congress, manuscript reading room (hereinafter referred to as ‘ Iran-Contra, Collection » « ).
7 don Gregg memorandum for Bud McFarlane, March 17, 1983, stamped SECRET, declassified since then. Document No. 77 in the Collection of the Iran – Contra; the note is a manuscript of ‘Bud’ [McFarlane] note to « Ollie » [North]. See also Gregg hearings, pp. 54-55.
8 Rodriguez and Weisman, supra, at p. 119.
9 meet Protocol Shultz, 25 May 1983 and the White House, both stamped SECRET/sensitive. Documents starting 00107 No. in the Collection of the Iran – Contra.
10. of Graffenreid memory of Admiral Murphy, July 12, 1983, since declassified, bearing no. 43673. Document No. 00137 in the Collection of the Iran-Contra.
11 Constantine C. Menges, inside the National Security Council (New York: Simon and Schuster, 1988), pp. 70-78.
12 timeline provided by the Office of the Vice President, quoted in The Progressive, may 18, 1987, London, p. 20.
13 Rodriguez and Weisman, supra, p. 221. ; CovertAction, no. 33, winter 1990, p. 13, citing the testimony of Oliver North. Report of the Iran-Contra (June 8, 1987), p. 643, 732-33.
(14. This section is based on literature 1) provided by CSA, Inc. and its subsidiary ANV 2) an exhaustive review of the CSA/NVA in Jupiter and elsewhere, including interviews with the staff employed by the company and with the military and the CIA personnel who worked with the company.
15 Scott Armstrong, managing editor for the national security Archives, the timeline: the account day after day documented military aid secret to the Iran and the Contras (New York: Warner Books, 1987), p. 55. Jonathan Marshall, Peter Dale Scott and Jane Hunter, of the Iran-Contra connection: teams and covert operations secret in the era Reagan (Boston: South End Press, 1987), pp. 219-20.
16. national Security Planning Group Meeting Minutes, June 25, 1984, pp. 1 and 14, photocopies reproduced in EIR Special Report: « American Leviathan: administrative fascism under the Bush regime » (Wiesbaden, Germany: Executive Intelligence Review Nachrichtenagentur, April 1990), p. 159.
17. it is an extract from article 8066 law Public 98-473, the finance law continues for the year 1985; Report of the Iran-Contra, November 13, 1987, p. 398 l.
18 Armstrong, op. cit., entry of 1 November 1984, p. 70, citing the Miami Herald , 02/11/84 and 03/11/84, Wall Street Journal 02/11/84, Washington Post 15/08/85, New York Times 23/12/87. Armstrong, op. cit., 10 November 1983 entry, p. 42, citing corporate documents of the Secretary of State of Florida 14/07/86, Miami Herald 02/11/84, New York Times 03/11/84.
19 Rodriguez and Weisman, supra, pp. 220-221. EIR special report: « American Leviathan, » pp. 157-158.
20 report of the Subcommittee on terrorism, narcotics and international operations of the Committee on foreign policy, the United States Senate, December 1988, pp. 61-62.
21 Rodriguez and Weisman, supra, pp. 221-22.
22. ibid., pp. 224-25.
23. the general Gorman « eyes only » cable in Pickering and Steele, 14 February 1985. Partially declassified and published July 30, 1987, by the National Security Council, no. D 23179. Document No. 00833 in the Collection of the Iran-Contra. See also Weisman, supra, p. 225-26 and Rodriguez.
24 stipulations US Government in the trial of Oliver North, reproduced in EIR Special Report: « Irangate, » pp. 20, 22.
25 Gregg hearings, p. 99.
26 Rodriguez and Weisman, supra, at p. 227. Gregg hearings, New York Times, December 13, 1986.
27. CovertAction, n ° 33, winter 1990, pp. 13 – 14 On Amiram Nir, see Armstrong, op. cit., p. 225-26, citing Wall Street Journal 22/12/86, New York Times 12/01/87. To the North and Poindexter, see Menges,op. cit., p. 264
28 Armstrong, op. cit., pp. 140 and 141, citing Senate Select Committee on Intelligence, « preliminary report », January 29, 1987.
29 Rodriguez and Weisman, supra, pp. 239-241.
30 journal of Oliver North, since edited and partially declassified, entries for « seven 10 85. « Document No. 01527 in the Collection of the Iran-Contra.
31. Washington Post, June 10, 1990.
32 Charles E. Allen « memorandum for the record », 18 December 1985. Partially declassified / fate (i.e. some parts are still removed) by the Council of national security on January 26, 1988. Document No. 02014 in the Collection of the Iran-Contra.
33 Armstrong, op. cit., pp. 226 and 227, quoting the Wall Street Journal 22/12/86, New York Times , 25/12/86 and 12 / 01 / 87.
34 Armstrong, op. cit., p. 231, citing the Washington Post 20/02/87, New York Times 22/02/87.
35. ibid., p. 232, citing the Miami Herald 30/11/86. 36 interview with Herman Moll in EIR special report: « Irangate, » pp. 81-83.
37 Armstrong, op. cit., p. 235, quoting the Washington Post , 16/12/86, 12-27-86, 10/01/87 and 12/01/87; Ibid., p. 238, citing the Tower Commission report; Menges, op. cit., p. 271.
38 Armstrong, op. cit., pp. 240-241, citing the Washington Post , 10/01/87 and 15/01/87; Senator John Tower, President, the Tower Commission report: the full text of the special examination Presidential Council (New York: Bantam Books, 1987), p. 217.
39. ibid., p. 37, 225.
40 input notebook Northern exposures of 9 January 1986, attached to deposits of Gregg in Tony Avirgan and Martha c. John Hull, Rene Corbo honey, Felipe Vidal et al, April 29, 1988.
41 Armstrong, op. cit., p. 258, citing the Brenneke letter, which has been put at the disposal of the Archive of national security.
«42 stipulations US Government at trial, to the North EIR Special Report: « Irangate, » p. 22.
43. the tower Commission report, pp. 67-68, 78.
44 Armstrong, op. cit., p. 266, quoting the Washington Post , 10/01/87 and 87-01-15.
45. the timeline provided by the Office of the Vice President Bush; Armstrong, op. cit., p. 266, quoting the Washington Post 16/12/86.
46. the testimony of Robert Earl, the Iran – Contra report, may 2, 1987, Vol. 9, pp. 22-23; Deposition of Craig Coy, the Iran – Contra report, 17 March 1987, Vol. 7, pp. 24-25: cited in CovertAction, No. 33, winter 1990, p. 13.
47 Oliver Revell to Senator David Boren, Chairman of the Senate Select Committee on Intelligence, 17 April 1987; Washington Post On February 17, 20 and 22, 1987; Wall Street Journal , February 20, 1987: cited in CovertAction, No. 33, winter 1990, p. 13.
48. Newsweek, October 21, 1985, p. 26; Earl Exhibit, our 3-8, attached to the Earl of deposits, supra , quoted in CovertAction No. 33, winter 1990, p. 15.
49 Earl deposits, op cit., 30 May 1987, pp. 33-37; May 15, 1987, pp. 117-21 (Channell and Miller); May 15, 1987, p. 131, 119 (private contributors).
50 Donald Gregg explanatory memorandum for Vice President, on January 27, 1986; published by the National Security Council March 22, 1988. Document No. 02254 in the Collection of the Iran-Contra.
51 Armstrong, op. cit., p. 275, citing the Miami Herald 30/11/86.
52. ibid., p. 280, citing the letter of Menarczik to Brenneke that was put at the disposal of the Archive of national security.
53. ibid., citing the Miami Herald 30/11/86.
54. New York Times, November 30, 1986, 4 December 1986. See the testimony of Gregg: Brenneke had number of M.
55. cited in Menges, op. cit., p. 275.
56 deposition of Michael Tolliver in Avirgan and honey, op.
57 Allan Nairn, « the Bush connection », in the progressive (London: May 18, 1987), pp. 21-22.
58 Nairn, op. cit., p. 19, 21-23.
59. report of the tower, p. 465
60 Rodríguez and Weisman, supra, pp. 244-245.
62 proposal for a calendar, »exposure of Vice President Office, April 16, 1986, attached to the deposit of Gregg Avirgan and honey, op.
63 memorandum Vice President Office, April 30, 1986, released on August 28, 1987 by the National Security Council. Document No. 02738 in the Collection of the Iran-Contra.
64 Rodriguez and Weisman, supra, pp. 245-46. See also confirmation hearings Gregg, extract below and many other sources.
65 Armstrong, op. cit., pp. 368 and 369, citing select Intelligence report of the Senate Committee, January 29, 1987. 66. ibid., p. 373, citing the Washington Post 16/12/86.
67. ibid., pp. 388-89, citing McFarlane testimony to the Commission on the tower.
68. the affidavit of Eugene Hasenfus Harry, October 12, 1986, pp. 2-3. Document No. 03575 in the Collection of the Iran-Contra. 69. report of the tower, pp. 385-88.
70. Washington Post, February 26, 1987.
71 Hasenfus Affidavit, pp. 6-7. 72 ibid.
73 Hasenfus Affidavit, p. 7.
74 Armstrong, op. cit., p. 508, citing the timeline provided by the Office of George Bush, Washington Post 16/12/86; New York Times 16/12/86, 17/12/86 and 25/12/86; Wall Street Journal 19/12/86 and 86-12-24.
75 Laredo [Texas] morning time, May 15, 1989, p. 1.
76. Washington Post, October 11, 1986.
77. Washington Post, October 12, 1986, October 14, 1986.
78. Washington Post, October 14, 1986.
79 Hasenfus Affidavit, p. 3.
80 Rodriguez and Weisman, supra, at p. 241.
81. Washington, post November 20, 1986.
82. Washington Post, February 12, 1987.
83. Washington Post, December 18, 1986, Wall Street Journal, December 19, 1986.
84 Donald T. Regan, For the Record: from Wall Street to Washington (New York: Harcourt Brace Jovanovitch, 1988), pp. 368-73.
86. New York Times, March 2, 1989.
87. CovertAction, n ° 33, winter 1990, p. 15.
88 stenographic transcript of hearings before the U.S. Senate Committee on Foreign Relations, hearing of nomination to Donald Phinney Gregg to be Ambassador of the Republic of Korea. Washington, D.C., may 12 and June 15, 1989. Some spelling errors in transcription have been corrected here.
89 Mary McCrory, « the truth according to Gregg », Washington Post, June 22, 1989.
90 print NEPL contributions 1985, cited in Armstrong, op. cit., p. 226.
Surviving the Cataclysm
George Bush: the unauthorized biography – by Webster g. Tarpley & Anton Chaitkin
Chapter XIX- The Gang of redemption of leverage
Throughout the Decade of the 1980s, the Reagan Bush and Bush administrations policies has encouraged one of the greatest paroxysms of speculation and wear the world has ever known. A mass malignant and cancerous paper speculative especially from the summer 1982, across all the vital organs of the credit, banking and financial system. Capital had long since ceased to be used for the creation of new productive plant and equipment and new productive employment; investment in transportation, power systems, education, health services and other infrastructure fell well under thje jump the same level. Investors of Wall Street got more and more to resemble vampires which stood on a landscape of ghouilish looking for live prey whose blood they could suck to perpetuate their own lively form of death.
Industrial employment was released, the services sector was in. The post-industrial society meant that wealth generation tangible, physical, hard products within US borders that ended. The future belongs to the parasites legions of lawyers, experts in financial, accounting and administrative support staff, but the growth of the deficit of the balance of payments has reported that the game could not last forever.
On the surface, the wild speculation was of the order of the day: there was the boom of the stock market, which suffered an accident in 1987, but then, thanks to future drugs and index James Brady markets options, kept rising until the Dow Jones rose from 3 000, although at this time, no one could remember why it was called still the industrial average. The stock market has provided the right atmosphere for a much broader speculative boom in real estate commercial and residential, which continued until almost the end of the Decade, but who then began to hang with a vengeance. When real estate has begun to implode, as in Texas in the mid-1980s or the Northeast after 1988, savings banks and commercial banks by scores became insolvent. Thus, by the third year of the administration Bush, a bankrupt savings and ready was seized by regulators Federal on almost all days, and Congressman Dingell of Michigan had to announce that Citibank, still the largest bank of the United States, was indeed ‘technically’ bankrupt. Applicants in Hong Kong began a run on the Citibank branch their American counterparts have been slower to react, perhaps because he is tricked by the pathetic faith that the Federal Deposit Insurance Corporation could always cover their deposits.
Even more fundamental than the speculation was the absolute primacy of debt. During the Reagan and Bush years, unprecedented federal defecits pushed the public debt of the United States in the ionosphere, to total almost quadruple a little more than ten years to approach the fantastic total $3250 billion. In 1989, it was estimated that total debt in the U.S. economy had reached almost $25000 billion, and their total has increased exponentially since then. Provincial debt, corporate debt, consumer debt – all increased in the wild blue yonder. In the meantime, the region of the Great Lakes became the rust Bowl, the Sun belt oil and computer boom has collapsed, the major cities of the East were rotten to the marrow with slums and farmers were bankrupt faster than at any other time in the memory of man.
Standard of living had been a gradual but steady decline since the days of Nixon, and at dawn on the families more and more who consider themselves members of the middle class that they could is longer afford their own home, nor hope to send their children to College, all because of prohibitive costs. The Bureau of the Census way in 1990 do not count the number of those who had become homeless in the 1980s, given that the actual figure would be a George Bush acute political embarrassment: there is 5 million, or 6, as the population of the Sweden, or the Belgium?
New jobs have been created, but most of them were dead ends for the losers to or below the minimum wage, which presupposes the illiteracy, the part of the plaintiff: sales of hamburger and pizza home delivery were the areas of growth, even if a clever child can still aspire to become a dealer. Behind him, all hiding drug trade everywhere, with hundreds of billions of dollars per year in heroin, crack, marijuana.
For the vast majority of the population American (not to mention the brutal impoverishment in developing countries), it was an age of austerity, sacrifice and decline, the entropy of a society in which most people have no purpose and feel become redundant, ontologically both on the labour market.
But for a layer of paper thin of plutocrats and parasites, the 1980s were a period of unlimited opportunity. These are practitioners of the monstrous financial scam that marked the Decade, the protagonists of the OPA hostile, mergers and acquisitions, leveraged Buy-outs, greenmail and stock plays occupying the admiration of Wall Street. It was corporate raiders as J. Hugh Liedkte, Blaine Kerr, T. Boone Pickens, and Frank Lorenzo, financiers of Wall Street like Henry Kravis and Nicholas Brady. And these men, surely not coincidentally, belonged to the intimate circle of friends personal and supporters of George Herbert Walker Bush nearby.
If the orgy of wear and speculation in the 1980s can be compared to a sparkling and exclusive holiday meal, Liedtke, Kerr, Pickens, Lorenzo, Kravis and Brady were guests, and George Bush was surely the elegantiarum host and referee who presided, to decide according to his own whim which would receive an invitation and that would be not and defining standards of acceptable conduct. Late 1991, Bill long deferred for such lucullian entertainment was about to happen. Exhausted workers and the poor unemployed must submit the letter to the founder of the feast, the child portal whining and greedy « of American politics, George Bush, the man whose idea of deprivation would be a life without servants, and including the concept of a national plan of action would be a leasing plan two maids and a Butler. »
One of the historical company battles of the first Reagan Administration was the battle for the control of oil Getty, a battle between Texaco, at that time the third largest oil company in the United States and the fourth most large industrial Corporation and Pennzoil of J. Hugh Liedkte. Former partner and constant crony George Bush, J. Hugh Liedtke, was always obsessed with his dream to build a major oil company Pennzoil, which could become the seventh of the traditional seven sisters after merge Chevron and Gulf. But the sands of biological time relied on Liedkte ‘Chairman Mao’, as the abrasive boss of Pennzoil was known in the years after that he became the first American tanker to break through in China, thanks to Bush. The only way that Chairman Mao Liedkte could realize her dream would be acquiring a large company and using its reserves to build Pennzoil to world class status.
Liedtke chaired the Pennzoil Board, and President of Pennzoil was now Blaine Kerr, a former lawyer from Baker & Botts in Houston. Blaine Kerr was also an old friend of George Bush. In 1970, when George was running against Lloyd Bentsen, Kerr advised Bush on a proposed transaction involving a request for loan by Victor A. Flaherty, who needed money to buy fidelity Printing Company. Blaine Kerr was a hard negotiator: it recommended that Bush make the loan, but that he also asked little broth to the printing of fidelity in the case. Three years later, when fidelity printing was sold, Bush cashed in his stock for $499 600 in profit, a gain of 1 900% on its initial investment. It was the kind of return that George Bush liked, the kind that can produce so seldom honest activities. [note 1]
Chairman Mao Liedkte and his sidekick Blaine Kerr constantly analyzed their radar for an oil to acquire company screens. They studied the Superior Oil, which was at stake, but Superior Oil also made many of its activities in the Canada, only there was no equivalent of George Bush Task Force on regulatory relief, and that the oil companies were still subject to restrictions. Chairman Mao to exclude this one. Then there was Gulf Oil, where T. Boone Pickens attempted a recovery, but reluctantly, Liedkte decided that the Gulf was beyond its means. Then Chairman Mao began to hear reports of conflicts at the Board of Directors of Getty oil. Getty Oil, with 20 000 employees, was a $12 billion company, about six times more than with Pennzoil. But Chairman Mao had already managed to fagocitate gas United when this compnay was about six times larger than his own Pennzoil. Oil Getty was about 1 billion barrels of oil in the ground. Now Chairman Mao was very interested.
The problem on the map of Getty had a conflict between Gordon Getty, the son of the founder freebooters J. Paul Getty and Sidney Petersen, the President of the House of Getty. Gordon Getty had musical-aesthetic ambitions; but he wanted to be consulted on all major political decisions by Getty oil. Gordon and his wife moved in social circles of Graham Allison of Harvard Kennedy School, Corporation of Lawrence Tisch by Loewe and Warren Buffett, owner of Berkshire Hathaway in Omaha investment House. Gordon Getty has now ordered Sarah Getty Trust with 40% of the stock. About 12% of the stock was controlled by the Getty Museum. Chairman Mao Liedtke gathered his team to try to take over Getty Oil: James Glanville of Lazard brothers has its investment banker, Arthur Liman of Paul, Weiss, Rifkind, Wharton & garrison was his chief negotiator. Leclerc also had the services of the megafirm Baker & Botts in Houston.
In early 1984, Gordon Getty and its Sarah Getty Trust and the Getty Museum, represented by New York mergers and acquisitions lawyer Marty Lipton combine to force the Board of oil Getty to give prior acceptance of a tender for Getty Oil stock offer (a Gammell once more) at a price of approximately $112.50 per share. Arthur Liman thought he had an agreement that would allow the Chariman Mao to take over Getty Oil and its barrel billion of reserves, but no contract or any other document was signed, and some key provisions of the transaction remained to be negotiated.
When the news of these negotiations have begun to leak out, compnaies major oil who wanted also Getty and its reserves began to move: Chevron has shown signs of making a move, but it was Texaco, represented by Bruce Wasserstein’s First Boston and the famous Skadden, Arps, Slate, Meagher & Flom law firm, which got the attention of the Getty Museum and Gordon Getty , with an offer ($ 125) that was softer than the President Mao Liedkte miser had been eager to highlight. Gordon Getty and the Getty Museum has therefore signed a contract with Texaco. It was the largest acquisition in human up until that time, history and cheque Gordon Getty was $4,071,051,264, the second cheque ever written in the history of the United States, second only to that which had been used to roll over a portion of the debt national post-war.
Chairman Mao Liedkte thought he had been deceived. « They did off the coast with my oil $ 1,000,000! », he screamed. « We will sue everyone in sight! »
But attempts by Chairman Mao Liedtke to stop the court case were unsuccessful; He then focused his attention on a civil action for damages on a claim that Texaco went guilty of « tortious interference » with Pennzoil alleged oral contract with Getty oil. The accusation was that Texaco had known that he had been a contract already and had begun deliberately violate it. After an extensive forum shopping, Chairman Mao concluded that Houston has been the scene of law for a costume of this type.
Liedtke and Pennzoil demanded $7 billion in actual damages and $7 billion in damages punitive for a total of at least $14 billion, a sum larger than the entirety of the public debt of the United States on December 7, 1941. Liedke hired Houston Attorney Joe ‘King of Torts’ Jamail and saved Jamail with Baker & Botts.
Interestingly, the judge who presided over the trial until the finals, when the spell in had already been thrown, was another J.P. Anthony « Tony Tough » Farris, we met two decades earlier as a Bushman of the old guard. Back in February 1963, we recall, the newly elected President of Republican County for Harris County, George H.W. Bush, had appointed Tough Tony Farris its first president of the County of the wizard. [fn 2] It was then that Bush was in the middle of the preparations for his 1964 failed Senate bid. Farris had attempted to be elected to the Congress on the GOP ticket, in vain. Under the Nixon Administration, Farris became the Attorney for the United States in Houston. Given what we know relationships between Nixon and George Bush (not to mention relations between Nixon and Prescott Bush), we conclude that an appointment of patronage of this type could not be made without the participation of George Bush. Tough Tony Farris definitely has an asset of Bush networks.
Now Tough Tony Farris was a State District judge whose remaining ambition in life was an appointment to the federal bench. Farris made pas recuse himself because his boss, George Bush, has been a business partner constant and former crony of the President Mao Liedkte. Farris instead began issuing a series of favourable decisions from Pennzoil: he ruled that Pennzoil had a right to the quick discovery, the discovery of file-rocket of Texaco. Farris was an old friend of senior counsel of Pennzoil Joe Jamail and jilali had given just Tough Tony Farris, a contribution of $10 000 for his next election campaign. Jamail, in fact, was a member of the Tony Tough Campaign Committee. Texaco attempted to challenge Farris, but they failed. Farris said that it would have recused himself if Texaco lawyers who came him private, but that their audience is attempting to get him pitched off the case made him decide to fight to stay on. Just at that time, the district courts of Harris County changed their rules to allow man Bush Tough Tony Farris, who chaired the hearings before trial, to really judge the case.
And judge the case, he did, for 15 weeks, while the deck was stacked for the final victory of Pennzoil. With a few weeks into the trial, Farris has been diagnosed as suffering from a terminal cancer, and he was forced to ask a district judge of replacement. The product of last-minute replacement was judge Solomon Casseb, who ended the case along the lines already clearly established by Farris. Late November, 1985, the jury awarded Pennzoil $10.53 billion in damages, a figure that exceeds Gross National Product total of 116 countries around the world. Casseb not only confirmed this monstrous result, but it has increased by a total of $11,120,976,110.83.
Before the trial, in January 1985, President Mao Liedkte had met John K. McKinley, President of Texaco, at the hotel Hay-Adams through the Park Lafayette of the White House in Washington DC. Liedkte said McKinley he thought that what had been Texaco was highly illegal, but McKinley replied that his lawyers had assured him that his legal position was « very strong ». McKinley offered suggestions for a settlement to settlement, but these were rejected by Chairman Mao, who did his own counterproposal: he wanted three-sevenths of Getty Oil, and was now ready to walk its price to $125 per share. According to an account of this meeting:
Liedtke seemed to come out his way of talking about his friendship with George Bush, according to Bill Weitzel of Texaco. « Mr. Liedkte was quite frank with regard to the influence he felt that he had – and would have and would expect Washington – within the framework of antitrust issues and legislative issues, » McKinley would say in the filing. « This idea that Pennzoil was not without influence policy that could harm the efforts of Texaco by completing its merger ». [fn 3]
Liedkte denied this: « the policy-influence thing is not true. I did not and McKinley knows it.! « A Liedkte keep his seriousness? Even during the talks between lawyers on both sides to arrange this meeting, the Attorney for Pennzoil mentioned his client’s ability to deflect « antitrust lightning » in the case. Relations of Chairman Mao with Nixon and Bush make his protests on a total absence of absurd political influence. Also godly, Blaine Kerr, investment advisor to Bush, says that the name of George Bush has never invoked.
In all cases, the Reagan-Bush regime makes no secret of its support to Pennzoil. In the spring of 1987, after the dispute prolonged, the supreme Court of the United States has required Texaco to provide a bond of $11 billion. April 13, 1987, the press announced that Texaco had filed for bankruptcy protection eleven chapter. The Ministry of Justice established two committees to represent the interests of unsecured creditors of Texaco and Pennzoil was made the President of one of these committees. Texaco operations were subject to serious disruption.
During the weeks of closure of 1987, Texaco has haggle with Chairman Mao on the amount of money which went bankrupt it would pay to Pennzoil. At this stage Bushman Laurent Gibbs was the Commissioner of the Internal Revenue Service, one of the main agencies of targeting of the totalitarian police state. Gibbs was always looking for new and better ways serve the cartel’s power of Bush, and now it has found a: he slammed nearly and hurt Texaco with a request for $6.5 billion in back taxes. This movement was underway behind the scenes at the Texaco-Pennzoil talks, and it is certainly entirely clear to Texaco on which side the Government was on. The implication is that Texaco had better settle with Chairman Mao in a hurry, or face the prospect of be broken through the various Wall Street sharks – Holmes a court, T. Boone Pickens, Kohlberg Kravis Roberts and Carl Icahn – who had begun to encircle the injured company. In case Texaco had not got the message, the Department of energy has also launched an attack against Texaco, alleging that made firm bankruptcy had overcharged its customers by $1.25 billion for the period prior to 1981 when oil price controls had been in place.
Chairman Mao Liedkte finally got his pound of flesh: he would finally receive $3 billion from Texaco. Texaco in late 1987 announced an impairment of assets of $4.9 billion as a result of huge losses and began to sell assets to try to avoid liquidation. Canadian operations of Texaco, its German operations were sold, as were 600 properties of oil in various places. Later Texaco also sold a 50% stake in its system of refining and marketing in Saudi Arabia. A number of refineries Texaco have simply been closed. A total of $7 billion in assets were sold in 1988-1989 only.
In early 1989, Texaco had been reduced to two-thirds of its previous size, and of his old number three positions were now the « runt of the litter » among us « majors ». Revenues from Texaco rose from 47.9 billion in 1984 to $35.1 billion in 1988. Assets decreased by $ 37.7 billion to $ 26.1 billion. In order to counter attacks Carl Icahn raids, Texaco had worse its furthger by the payment of $330 million in greenmail in the form of a special distribution of $8 to shareholders designed mainly to appease Icahn. [fn 4]
This whole thing was a monstrous miscarriage of Justice, a statement of bankrupt the entire American legal system. In the heart of the case was the pervasive influence of networks Bush, which gave Liedkte the support that he should fight until the final settlement. The real losers in this case were Texaco and Getty, workers whose jobs have been destroyed and the families of these workers. Estimates of the number of these victims are hard to find, but the County must reach tens of thousands. In addition, the economy has suffered an operation which increased claims on current production while reducing the physical scale of this production.
But even the enormities of the President Mao Liedkte, were intended to be overshadowed in climate policy and regulatory wild greed, created using the Reagan-Bush administration and George Bush working on regulatory relief group. Same Liedkte colossal grip was about to be out-surmounted of a small Wall Street business which, especially during the second term of Reagan-Bush (what influence of Bush and control were even more) assembled a financial empire than that of J.P. Morgan at the height of the power of Jupiter. This company has been to Kohlberg, Kravis, Roberts (KKR), which was founded in 1976 by a partner and some former employees of brokerage firm Bear Sterns of lower Manhattan, and that, by the end of the 1990s had purchased a total of 36 companies using some $58 billion ready to KKR by the insurance companies, commercial banks Fund State pension and the » junk bond » King Michael Milken. The dominant personality of KKR was Henry Kravis, the man who inspired the actor Michael Douglas (classmate former prep school by Kravis at the Loomis school) when Douglas played the role of corporate raider Gordon Gekko in the movie by Oliver Stone « Wall Street. » Henry Kravis was the motor force behind the KKR LBO of RJR Nabisco, which, with a price of $25 billion, was the largest transaction in the history.
EPIC achievements of Henry Kravis in speculation and wear may have had something to do with the fact that he was a close friend of the family of George Bush.
As we have seen, when Prescott Bush was providing a job young George Herbert Walker Bush in 1948, he contacted Ray Kravis of Tulsa, Oklahoma, which included helping Brown Brothers, Harriman to assess oil reserves to companies. Ray Kravis had quickly offered George a job, but George refused, preferring to go to work for Dresser Industries, a large enterprise. This is how George came to Odessa and Midland, in the Permian Basin of Texas. Ray Kravis years had kept in close contact with Senator Prescott Bush and George Bush, and the young Henry Kravis was introduced to George and had hob-nobbed with him to various party Republican and other fundraising activities. Henry Kravis by the beginning of the 1980s was a member of the Republican party elite Inner Circle.
Bush and Henry Kravis became even more closely associated with the era where Bush, concerned about campaign financing, preparing his candidacy for the Presidency. Political contributors, Henry Kravis was a very big player. In 1987-88, Kravis gave more than $80 000 to various senators, members of Congress, Republican political Action Committees and the Republican National Committee. In 1988, Kravis gave $100 000 to the GOP Team 100, which meant a ‘soft money’ contributions to the Bush campaign. Partner of Kravis George Roberts anted also upwards of $100 000 for the 100 Republican team. In 1989, the first year when it was owned by KKR, RJR Nabisco also gave $100 000 percent of the team. That year, Kravis and Roberts gave $25 000 each for the GOP.
During the main season of 1988, Kravis was the co-Chairman of a sumptuous Bush fundraiser at the Vista hotel in lower Manhattan, to which Henry colleagues dealmakers from Wall Street and financial fatcats coughed a total of $550 000 for Bush. Part of the symbolic compensation of Kravis was to be honored with the prestigious title of co-Chairman of Bush’s Inaugural dinner in January 1989. A year later, in January 1990, Kravis was National President of the Bush’s Inaugural anniversary dinner. It was a glittering gala held at the Kennedy Center in Washington to a thousand members of the Republican Eagles, more of which are eligible by giving the GOP $15 000 or more. Entertainment was organized as a «oldies night», Chubby Checker, Tony Bennett and B.B. King. When George Bush sent the Eagles, it was lavish in his praise for Henry Kravis as one of « those who have made the bulk of the work on this. [fn 5]
According to Jonathan Bush, brother of George Bush and the chiarman of the finances of the Republican State, Henry Kravis of New York was « very helpful to President Bush in fundraising. » According to Brother Jonathan, Kravis ‘admired President. And also, clearly, on a personal level, his father, Ray and [George Bush] were friends from way back. And this meant much for Henry. He wanted to be part of that. »
Henry Kravis had married the former Janey Smith of Kirksville, Missouri, who now calls himself Carolyne Roehm. Carolyne Roehm had been introduced in the New York new company by Oscar of la Renta. She and Henry Kravis cultivates a life style sybarites frantically in the company of a social circle that included the boss of Bush Henry Kissinger, American Express president Jim Robinson and his wife Linda, Donald and Ivana Trump, Anne Bass, corporate raider Saul Steinberg, Tycoon cosmetics Ronald Lauder and Bush Fund operative Robert Mosbacher and his wife Georgette. It was a crowd of Bushman. Kravis and his « trophy » wife lived in an apartment big enough to be a soundstage in Hollywood Park Avenue and also had an area of 270 hectares to Weatherstone, Connecticut. The sumptuous House there, which is listed in the National Historic register, has nine fireplaces. Henry and Carolyne added a $7 million, six-building, 42 000 square feet « agricultural complex » seven horses. It was Henry Kravis, stoker Chief of the bonfire of the vanities, celebrated by Vice President Dan Quayle as the Republican Party of New York of the year.
It was such an apostle of wear that George Bush has turned for advice on public policy in economy and finance. According to Kravis, Bush « » wrote to me handwritten notes all the time and he calls me and stuff and talk us. ‘ » Maintenance concerns that the U.S. Government should do in the areas of immediate interest to Kravis: « we talked about the corporate debt – this was going to go back a few years – and what that meant for the private sector, » said Kravis.
Henry Kravis certainly knows all about debt. The 1980s saw the triumph of debt on own funds, with a total of corporate debt increased tenfold during the Decade, while production, production capacity, and unemployment has stagnated and declined. One of the main ways in which this debt was loaded on a productive base shrinking has been using the technique of the hostile takeover, junk-bonds assisted leveraaged including Henry Kravis and his cabinet were the main practitioners.
Economist Franco Modigliani had written in the 1950s on the theoretical limits of corporate debt. Small-scale takeovers have been developed by Kohlberg during the end of the 1970s. In its final form, the technique has looked something like this: Corporate raiders looked around for companies that would be worth more than their current share price if they were broken upwards and cheap. The use of money borrowed from a number of sources, the raider would make a public offer to purchase (once again, at the Jimmy Gammell in the redemption of Liedkte United gas) or otherwise to secure a majority of the shares. Often all the outstanding shares of the company would be purchased with private enterprise, property residing in a small group of financiers. The company would end by struggling with an immense amount of new debt, often in the form of high-yield and high-risk sunbordinated called junk bonds debt certificates. The risk on these was high since, if the company was to go bankrupt and put up for auction, holders of high-risk bonds would be the last to obtain compensation.
Often, the first shot of raider after taking control of the company and forcing its current management would sell parts of the company which produced the cash less, improving flow of cash being imperative to begin to pay the new debt. The proceeds of these sales could also be used to repay some of the original debt, but this process inevitably means destroyed jobs and production decreased.
Teas operations commandos were justified by a populist-fascistoid demagoguery that has accused the current leadership of incompetence, laziness and greed. LBO pirates claimed to have at heart the interests of the shareholders and made much of the fact that their activities have increased the value of the stock and in the case of tenders, gave shareholders a better price that they would have gotten otherwise. The litany of the raider company has been built around its commitment to « maximize value shareholder; » workers, bondholders, the public and the management were all consumables. Ivan Boesky and others. This further embroidered with a direct apology for greed as a strength of the motor of progress in human affairs.
Appeal important to transform the stocks and equity in bonded debt and the other was provided by the madness of the U.S. tax code, which has taxed profits distributed to shareholders, but not debt paid on bonds at high risk. The ascendancy of the acquisition debt has therefore undertaken to pari passu with the demolition of the American corporate tax base, contributes in no small way to the growth of federal deficits. Plutocrats are always able to find loopholes to avoid paying their taxes. Ultimately the big profits were expected when companies acquired, after having been reduced to dimensions « lean and mean », had their shares sold to the public. KKR itself reserved 20% of the profits on these final transactions. In the meantime, Kravis and his associates collected fresh banking investment, restraint, presence chips, fresh management, costs monitoring and a plethora of other fees for their services.
Leverage has been accomplished by the smallest amount of outstanding equity compared to the much greater debt. This means that if, after deducting the debt service, profits increased, the return to investors could become very high. Naturally, if the losses began to appear, reverse leverage would come into play, producing astronomical amounts of red ink. More fundamental was that companies were responsible for debt in the years of the Reagan-Bush regime insisted on calling a boom. It was obvious to any observer restrained than in the case of a recession or a new depression, many companies that had succumbed to takeovers and forces wear very quickly become insolvent. The Reagan-Bush regime was forced to argue that the economy weighing on supply and deregulation of Bush had repealed the business cycle, and than ever on recessions more. That is why the ‘recession’ (in reality the aggravation of pre-existing depression) that George Bush was forced to acknowledge during the end of the 1990s was so disturbing in its implications. Buyouts of the 1980s were now doomed to collapse. The writing on the wall was clear in September-October 1989, the first year of Presidency of George Bush, when the $250 billion for high-risk bonds market collapsed just before the crash of the New York Stock Exchange mini.
Overall, in the years between 1982 and 1988, more than 10 000 of merger and acquisition transactions were completed within the borders of the United States, for a total $1 billion capitlization. There are over 3500 of mergers and acquisitions for another $500 billion. [fn 6] The atrophied nothing antitrust enforcement: as an observer from the end of the 1980s has said, « such concentrations were not been authorized since the inception of antitrust at the beginning of the century. »
A friend of George Bush Henry Kravis raises funds for its acquisitions by borrowing from a number of sources. Money came first from the insurance companies such as the Metropolitan Life Insurance Company of New York, who cultivated a close relationship with KKR over several years. Met was joined by Prudential, Aetna and Northwest Mutual. And then there were banks such as Manufacturers Hanover Trust and Bankers Trust. All these institutions were attracted by astronomical rates of return on investments of KKR, estimated 32.2% in 1980, 41.8 per cent in 1982, 28% in 1984 and 29.6% in 1986. In 1987, KKR prospectus boasted that they had completed the first large LBO of a company, the first billion LBO, the LBO of grand premiere of the company via a public offer to purchase and the largest LBO in history, Beatrice Foods.
Then came the State pension funds, which were also anxious to share these very large returns. The first to start investing with KKR was Oregon, which shovelled money at KKR, like there was no tomorrow. Other States which have acceded were Washington, Utah, Minnesota, Michigan, New York, Wisconsin, Illinois, Iowa, Massachusetts and Montana. The funds committ decisions are generally made by State boards. An example is Minnesota: here, the Board of Investment of the State is composed of the Governor, the Treasurer of State, auditor of State, the Secretary of State and the Attorney general, currently Skip Humphrey. Some of these funds are therefore strongly committed to KKR that no offers very lever should go sour in the course of ‘recession’, pension for many workers in the State retired in these States would soon cease to exist. In this event, which, for a lot of work has already taken place, victims should remember George Bush, the political Godfather of Henry Kravis and KKR.
KKR had another very important source of capital for its contracts: it was the undertaking of investment of Wall Strreet defunct Drexel Burnham Lambert and his » junk bond » King based in California, Michael Milken. Drexel and Milken were the most important customers unique KKR had. (Drexel had its own link Harriman: it had merged with Ripley Harriman & Co. in New York in 1966.) During the period of the close working alliance between KKR and Drexel, junk-bonds from Milken operation triggered a $20 billion Fund to KKR. High risk bonds were high-risk debt securities, junior high performance floating Milken. It began with bonds issued by insurance per night, held by financiers who are looking to get out of the dimness of Meyer Lansky. Among these Carl Lindner and his great American; Saul Steinberg and its Reliance Insurance Co., Meshulam Riklis and his rapid American Group; Laurence Tisch and NAC; Nelson Peltz; Victor Posner; Carl Icahn; Thomas Spiegel and his Columbia savings and loan; and Fred Carr, a financial Gunslinger of the 1960s and its first Corp Executive insurance company. Later, the circle of client of Milken could expand to include commercial banks, savings and loans, funds mutual, insurance companies and other premium which could not withstand the high yields. These barons of robbery modern wear are nicknamed the « Milken monsters » by one of them, Meshulam Riklis.
All these characters strutting at the annual meetings to Milken in Beverly Hills, which were followed by evenings of lavish entertainment. These became known as the « predators ball » and has attracted people like T. Boone Pickens, Icahn, Irwin Jacobs, Sir James Goldsmith, Oscar Wyatt, Saul Steinberg, Boesky, Lindner, the Canadian family Belzberg, Ron Perelman and other personalities.
First Executive Corp. was the great first bankruptcy among insurers in early 1991, giving the depression of the 1990s, a dimension which lacks the economic-financial conflagration of the 1930s. First Executive Life succumbed to losses on its portfolio of « junk bond », and it will be the first of several insurance companies to find the office by this route. Shortly thereafter, the benefits Mutual Life Insurance Company of New Jersey was seized by State regulators. Mutual Benmefit was also victim of real estate goods handset and » junk bond » losses, and other retirement plans were threatened with annihlitation. Those whose pension is lost should remind the front Uni « junk bond » accessible from Milken to Kravis to Bush.
Spiegel Columbia S & L is a classic case of a thrift institution that went wild in its acquisition of high-efficiency Milken junk. At the same time this instutution had about $10 billion of junk in its portfolio. Columbia S & L was seized by the Federal regulatory agencies during the first months of 1990. Although many savings and loan bankruptcies were caused by real-estate speculation, much must also be attributed to a quest has failed for a junk bonanza.
Silent partner of Milken was Ivan Boesky, the dealer who was overflowing with program deals to become a silent partner in the advancement of the Milken stockjobbing: sometimes Milkenm would Boesky begin to acquire the stock of a certain society in order to signal to the market that it was at stake, triggering a rush of buyers when it suited strategy of Milken.
The Beatrice LBO demonstrates how necessary Milken role was to the overall strategy of backer Bush Kravis. Beatrice was the largest LBO until it was completed in January-February 1986, with a price of $8.2 billion. Under the agreement, Kravis gave good Milken for 5 million shares in the new company to Beatrice. These mandates could be used in the future to buy shares at a fraction of the price of the market of Beatrice. A result of this would be a dilution of equity of other investors. Milken retained warrants for its own account, rather than to them offer its buyers to » junk bond » in order to get a better price for bonds to high risk Beatrice. Later in the same year, KKR bought Safeway grocery for $4.1 billion, of which a large portion came from Milken.
After 1986, Kravis and Roberts were seized by financial megalomania. Between 1987 and 1989, they acquired 8 additional companies with an aggregate price of $43.9 billion. These new victims included Owens-Illinois glass, Duracell, which cannot be hold on the race as long as many think, Stop and Shop markets food and, in the 1980s landmark operation, RJR Nabisco. RJR Nabisco was the product of a number of earlier mergers: National Bisucuit Company had merged with Standard Brands to form Nabisco Brands, and this in turn merged with R.J. Reynolds Tobacco to create RJR Nabisco. It is important to remember that R.J. Reynolds has been the concern traditionally controlled by the personal White House lawyer famnily of Bush, C. Boyden Gray of « Boy ».
The battle for control of RJR Nabisco has been lost by the Chairman of RJR Nabisco Ross Johnson, Peter Cohen of Sherason Lehman Hutton and the notorious John Gutfruend of Salomon Brothers. KKR against this group and a third offer for RJR came First Boston. Offer for Johnson and KKR were talking about the same thing, but a cover story in Luce-Skull and Bones Time Magazine in the early December, 1988 targeted Johnson as the greedy part. Attraction of RJR Nabisco, one of the twenty largest U.S. companies, has been a huge cash flow of supplied mainly by its sales of cigarettes, where the margins are huge. The crucial phases of the fight corresponded with the 1988 presidential election: Bush won the White House, if it was not surprising that earned Kravis RJR with an offer of about $109 per share compared with a rating of about $55 per share, until the company was put into play, giving shareholders prebuyout added value over $13.3 billion. How much of that went to the grey boy from the Bush White House?
The scam of RJR Nabisco generated senior bank debt of about $15 billion. The came $5 billion of subordinated debt, with the largest offer ever made high-risk bonds. Then came a level even more junior debt with payment in securities and unwanted bonds that interest paid not in cash but in other junk bonds. But even with all the magic of KKR, there could be no agreement without Milken and its high risk obligations. The banks could not collect the money needed to complete the financing; KKR held loans. Merrill Lynch and Drexel were vying to provide an extra $5 billion interim financing. Drexel got monsters of Milken and many others to buy tickets adverse short term with an interest rate which increases the more the owner refrained from cashing in the note. « Notes of protection against rising rates » Drexel easily introduced into the entire $5 billion needed.
In November 1986, Ivan Boesky pleaded guilty to an offence of handling of titles, and his testimony led to the indictment of Milken in March 1989, a few months after the RJR Nabisco case had been sewn upwards. In order to protect the most important financial actors, Milken was permitted to plead guilty in April 1990 a five counts of insider trading, for which he agreed to pay a fine of $600 million. On 13 February 1990, Drexel Burnham Lambert himself had declared bankruptcy and gone into liquidation, much to the distress of the holders of » junk bond » everywhere » junk bond » who saw the firm as a buyer of last spring.
This time, many of the large LBO began to crumble. Empire of retail allies and federated by Campeau stores exploded in the fall of 1989, felling almosty $10 billion of the LBO debt. REVCO, Freuhauf, Southland (Seven-Eleven stores), Resorts International and many other LBO operations went into Chapter 11 proceedings. In regards to offers from KKR, they also began to implode: SCI – TV, a spin-off of storage broadcasting, announced that it could not service its $1.3 billion debt and forced the holders of $500 million in bonds at high risk to settle the new value of shares and bonds between 20 and 70 cents on the dollar. Hillsborogh Holdings, a subsidiary of Jim Walker, made bankruptcy, and Seamans furniture through a restructuring of its debt.
It was clear at the time of discontinuation RJR Nabisco LBO that all of the large cash flows of the company would be required to maintain payments of $25 billion of debt. It will take many beasts to crack and Winstons. If RJR Nabisco was a foreign country, it would have ranked among the top countries 15 debtor, coming between the Peru and the Philippines. Shortly after the LBO, RJR Nabisco proved unable to maintain payments. KKR had to inject billions of dollars of new shares, out of new loans from the Bank and dunning clients for an extra $1.7 billion. RJR Nabisco by the beginning of the fall of 1991 was a time bomb near the center of the American economy a ruin. If citizens are bright enough to follow the line that leads Milken to Kravis to Bush, RJR and similar horror stories could demolish politically George Bush.
In September 1987, Senator William Proxmire presented a draft law to restrict takeovers. Two weeks later, Rep. Rostenkowski of Illinois offered a Bill to limit the tax reductions for interest on the public debt. The LBO on Wall Street gang was horrified, even though it was clear that the Reagan-Bush team opposed the relevant texts using all the tricks in the book. Later, ideologists of LBO has blamed Congress for causing the crash of October 1987.
Kravis has always been strongly any restrictions on the kind of madness that we examined briefly. « I’m quite of a person of the market economy, » says Kravis. I don’t want interference. My life… you have listened to the story of my life, I do not want interference! The best thing that can happen to people and this country is a free market system, and I am very worried, if we don’t keep the right people in office, that we are not going to have this free market environment. « And we should have it! » [fn 7]
This corresponds exactly to the Bush policy. During the 1988 campaign, Bush presented his views on hostile takeover bids, using the forum provided by his old friend T. Boone Pickens USA Advocate, a monthly newsletter published by the Association of shareholders United, which runs Pickens. In the October 1988 issue of this publication, Bush clearly indicated that he was not worried about leveraged buyouts. Regards to Bush was rather the need to prevent the enterprises to adopt defenses to deter such hostile takeover attempts. Bush indicated that he wanted to prohibit the poison pill defenses, which often take the form of a new class of shares in a company that allows its holders buy shares in the successor company priced extremely low after a takeover. Poison pills were invented by New York lawyer Marty Lipton and did not deter the raider Sir James Goldsmith to take control of the Crown Zellerbach decision in the mid-1980s, although the Goldsmith costs have risen.
Bush railed against the « golden parachutes » that provide lucrative settlements for senior managers who are evicted as a result of support:
I’m frankly somewhat skeptical about claims that these tactics called ‘defensive’ are needed to encourage long-term investment. Studies suggest that stock prices reflect the information available to the public. Sometimes it seems that managers use these tactics to save themselves from competitive pressure in the market for corporate control, no do not protect the interests of shareholders.
Bush is clearly hostile to Federal restrictions on hostile Takeovers. If anything, he was closer to those who demanded that the federal Government stop the States to pass laws that interfere with the activity of LBO. For this notorious corporate raider and a disciple of Chairman Mao Liedtke, T. Boone Pickens, the message was clear:
I know that Vice President Bush is a free business leader. I do not think that there is no doubt if you look at what Bush Vice President said and what Governor Dukakis said that Bush is favourable for the shareholder. I would say that Dukakis is Pro-gestion. *
The expectations of Pickens and his ilk were not disappointed by the Bush cabinet, which took office in January 1989. The new Secretary of the Treasury, crony Bush Nicholas Brady, was only a supporter of leveraged buyouts; He had been one of the main practitioners of mergers and acquisitions game during his days on Wall Street as a partner of the investment firm Harriman Allied of Dillon Read.
The family of Nicholas Brady was allied with during most of the 20th century with the Bush-Walker clan. During his career on Wall Street at Dillon, Read, Brady, like Bush, cultivated self-image of the patrician banker, becoming a member of the Jockey Club New York and from his own horses thorougbred in New York’s race follows once chaired by George Herbert Walker and Prescott Bush. Brady, like Bush, is a member of the Bohemian Club of San Francisco and Bohemian Grove every summer. Inside of the oligarchic Pantheon of Bohemian Grove, Brady enjoys the special mention to chair the prestigious Mandalay Camp (or complex cabin), one usually followed by Henry Kissinger and sometimes frequented by Gerald Ford. When Senator Harrison Williams of New Jersey was ousted from office by « Midlothian » of FBI entrapment operation, Brady was appointed to fill the remainder of the period to which Williams had been elected. Brady is also allegedly subjected to dyslexia.
The Regency in Lower Manhattan, rubbed Brady elbows every morning at breakfast with Joe Flom and the rest of the crowd of Skadden Arps, Arthur F. Long D.F. King and Co., Marty Lipton, Arthur Liman, Felix Rohatyn, friend of Boesky Marty Siegel and Joe Perella of First Boston.
LBO: Brady’s experience dates back to the battle of 1985 for control of Unocal, former Union Oil Company. T. Boone Pickens and Mesa Petroleum has attempted a hostile takeover of Unocal through a public offer of purchase « two-tier » complex whereby the shareholders eager to help Pickens to a controlling interest in Unocal would receive cash for their stocks, but those forced to sell to Pickens, after that he went on top would be forced to accept unwanted securities. To defend against this bid hostile on two levels, front-loaded, Unocal management involves Brady Dillon Read with Goldman Sachs.
In collaboration with Goldman Sachs, Brady helped design a new form of defense anti-takoever for Unocal: it was indeed a LBO self-inflicted, an independent tender for a large part of Unocal stock which the company has offered to buy at a price higher than that stipulated in the offer Pickens, although Unocal would refuse to accept any of the shares held by Pickens. Pickens has tried to overthrow the present tender independent selective in the Delaware courts, but he was defeated.
Sponsored by the bankers of Brady independent tender was in fact a game of usurious chicken: Unocal takeover bid purchase 80 million shares at an astronomical $ 72 per share versus the $54 offered by Pickens. This meant $5.8 billion of new debt to high-interest junk-bonds for Unocal, in another triumph of debt on equity. The premise was that if Pickens insisted to go ahead, it could very well take over Unocal, but the burden of the new debt would mean that the company would soon go bankrupt and Pickens would lose all his money. In this case, the direction of Unocal advised by Nick Brady was more than willing to play with the existence of the whole of society and thus livelihoods of thousands of workers and their families, to repel the advances of Pickens. In the end, this device would charge Unocal with a crushing $3.6 billion of debt at high interest through the plan advocated by the firm of Brady.
Nick Brady got the job he held currently by conducting a study of the October, 1987 stock market crash, the results which Brady announced on a cold Friday afternoon in January 1988, just after the New York Stock Exchange took another 150 pique point.
October 1988 study « break from the market » was produced by a group of Wall Street Insiders and the Treasury Board, this Council as the « presidential market mechanisms special team. In the centre of the attention of the report was the relationship between the stock the New York Stock Exchange, American Stock Exchange and Nasdaq trading over-the-counter, on one hand and the future, options and index trading at the Chicago Board of Trade, the Chicago Board Options Exchange and the Chicago Mercantile Exchange. The Brady group examined the impact of program trading, index arbitration portfolio insurance strategies and on the behaviour of the markets that led to the accident. The Brady report recommended the centralization of the monitoring of the market all in one federal organization, the unification of systems, the consistent margins and installation of mechanisms of circuit breaker of the company. That, at least, was the public content of the report.
The real purpose of the Brady report was to create a series of markets drugged and manipulated using funds from the federal reserve and other sources. The Brady Group realized that if the Chicago for a stock or stock index futures could be artificially inflated, it would be very useful to support the value of the underlying stock in New York. The Group of Brady focused on the Major Market Index of 20 future shares traded on the Chicago Board of Trade, which corresponded roughly to the main stocks of the Dow Jones Industrial Average. As long as the MMI was trading at a price higher than the Dow Jones index, program traders and arbitrageurs index would tend to sell the MMI and buy the underlying stock in New York to lock their profits stockjobbing. The great advantage of this system was first a few tens of millions of dollars in Chicago could generate hundreds of millions of dollars of application in New York. In addition, the required margin to borrow money to buy contracts Chicago futures were much less stringent that the margin requirements, buy stocks in New York. Liquidity for this operation that can be drawn from banks and others loyal to the cartel’s power of the Bush-Baker-Brady, with the full backup and support from federal reserve district banks.
The mechanisms of « drug market » Brady, with the improvements they have acquired since 1988, is a key behind the Dow Jones Industrials’ seeming disregard for the law of gravity in attainting a new all weather well over 3000 marks in 1991.
[Exercise of Brady was nothing new: during the collapse of the bubble of the Earl of Oxford in 1720 South Sea, the attempt of the South Sea Company] ted to support the astronomical price inflated its shares by becoming a buyer of its own stock to its cash and credit reserves have been exhausted. These manuevers can delay the start of the final collapse during a certain period of time, but they ensure that, when the panic, the accident and the bankruptcy finally becomes overwhelming, the overall harm to society will be much greater than if the accident could occur depending on its own spontaneous dynamics. For this reason, a large part of the fearful price which is required of the American people that depression runs in his fury full is the result of measures Bush-Brady to postpone the inevitable judgment beyond the 1988 election.
An important case study of the impact of Bush’s Task Force on regulatory relief is the meat-packing industry. In February 1981, when Reagan gave authority « line » Bush deregulation, he promulgated Legislative Decree 12291, which established the principle that federal regulations « based on sufficient evidence that their potential benefits to society outweigh their potential costs for the company. » In practice, this meant that Bush threw the standards of health and safety by the window in order to ingratiate itself with entrepreneurs. In March 1981, Bush wrote to businessmen, invites them to enumerate the 10 areas they would like to see deregulated, with specific recommendations on what they wanted to do. At the end of the year Bush’s Office issued a report self-congratulatory boasting a « significant reduction in the cost of federal regulation. » In the meat industry, this translates in the acceleration of the chain of production jobs were eliminated, with a cavalier attitude toward safety. At the same time the Occupational Safety and Health Administration sharply reduced inspections, which are often only after disabling or fatal accidents had already occurred. In 1980, there are 280 inspections OSHA in meat packing plants, but in 1988, there were only 176. This, in an industry where the injury rate of 173 persons per day, three times the average of all remaining U.S. plants. [fn 8]
Bush has used his regulatory Relief Task Force groups to win favor with various companies including the support he wanted for his future plans to assume the Presidency on his own. According to a study done in the mid-Reagan, Bush has transformed his own office « in a practice diverted for corporate lobbyists » and « a Court of last resort for the special interest groups that have lost their arguments to Congress, in federal courts or in the regulatory process ». « Case by case, the vice presidency has been involved in some medium and small problems that directly affect the health and life of the dumping of toxic pollutants to the warnings of Government regarding popular potentially dangerous drugs. » [fn 9]
There were also reports of serious abuse of Bush, particularly in the field of conflicts of interest. In one case, Bush intervened in March 1981 for Eli Lilly & Co., a company which he had been a Director in 1977-79. Bush had owned $145 000 of Eli Lilly stock until January 1981, after which he was placed in a blind trust, meaning that Bush would have had no way of knowing if his confidence still had shares in the company or not. The Treasury Department had wanted the conditions for tax relief for U.S. pharmaceutical companies operating in Puerto Rico more strict, but Vice President Bush had contacted the Ministry of finance to encourage « technical » amendments to be made to the restriction of tax relief. In 14 April Bush felt the heat, and he wrote a second letter to Don’s Secretary of Council of treasure Regan asking that his first application be withdrawn because Bush was now « uncomfortable on the appearance of my active personal involvement in the details of a tax case directly affecting a company with which I had once a close association. » [fn 10] Bush always interest in Eli Lilly is underlined by the fact that the family of Pulliam of Indiana, the more late in the course of execution of Bush Dan Quayle family mate clan, had very much of the Eli Lilly shares. Choice of Bush of Quayle was a reaffirmation of an alliance of financial and political pre-existing with the interests of Pulliam, also include a chain of newspapers.
The long-term results of the campaign of deregulation that Bush used to burnish his image are suggested by the September 1991 fire in a chicken processing plant operated by Imperial produced food to Hamlet, North Carolina, in which 25 people died. An obvious cause of this tragedy was an almost total lack of adequate State and federal inspection, which might have identified the risk of fire that had accumulated for years. This fire led during October 1991 to the bankruptcy of the Imperial Society of food products which could not obtain financing to roll over its short-term and long-term debt obligations. 225 workers at the lost hamlet plant their jobs, as did the company’s 200 workers is another plant in Cumming, Georgia.
Idea of Bush’s ideal work management practices and corporate leadership in general seems to have embodied by Frank Lorenzo, air transportation the most famous and hated banquerotteur of us. Before its fall in the early 1990s, Lorenzo combined Texas Air, Continental Airlines, Air in New York, People Express and Eastern Airlines into a single operation and then presided over its bankruptcy. Now East was liquidated, and other components are likely to follow suit. On the way to this debacle, Lorenzo has won the sympathy of the Reagan-Bush crowd through its anti-Union tactics: he had thrown Continental Airlines into bankruptcy court and used the statutes of bankruptcy to break all union contracts and to break the trade unions themselves as well. Continental pilots had been stripped of seniority, benefits and bargaining rights and suffered a massive pay cut under threat to be found in the street. In 1985, the average salary of a pilot was $87 000 at TWA, but less than $30 000 to Continental. The hourly cost of a crew of an American Airlines DC-10 flight was $703, to Continental only $194. It is an interesting commentary on these abusive salaries that Lorenzo still managed to Continental in bankruptcy at the end of the Decade.
George Bush has been officially as a union-buster dedicated to 1963-64 going, and he was always very friendly with Lorenzo. When Bush became President, he has gone beyond the personal sphere and became a revolving door between the Air of Texas and the Bush Administration. In 1989, the airline pilots Association has published a list of about 30 cases in which officials Texas Air had transferred to jobs in the Bush regime and vice versa. The end of 1989, top lobbyist Bush of the Congress was Frderick’in D. McClure, who had been a vice president and chief lobbyist for Texas Air. McClure had traded jobs with the range of Rebecca, who had worked as a public Reagan’s liaison, until it moves to the position of leader of the lobbyist Congress for Texas Air. John Robson, Deputy Secretary of the Treasury of Bush, was a former member of the Board of Directors of Continental Airlines. Elliott Seiden, once a top lawyer RT for the Department of Justice to be a lawyer for Texas Air. [fn 11]
Asked by Jack Anderson, McClure and Robson claimed that they are themselves removed any question involving Texas Air. But McClure signed a letter to Congress announcing the Bush opposition to any investigation of Government on the circumstances of the Eastern Airlines strike in early 1989. Bush himself has always stonewalled for Lorenzo. During the first months of the historic Eastern Airlines strike, where pilots, stewardesses and machinists all out to block the plan of Lorenzo to downsize the airline and unions, Congress has attempted to set up a group of experts to investigate the conflict, the bust, but Bush has been adamant in favour of Lorenzo and opposed its veto to any Government probes. [fn 12]
Activities of Lorenzo were decisive in the demolition we transport aircraft during the era of Reagan-Bush. When Carl Icahn was trying to take over TWA, it could be argued that the need to compete in a large number of same markets where airlines of Lorenzo were active made mandatory the TWA work force to accept wage reductions and similar sacrifices. The criteria to reduce the costs developed with such ruthless aggression by Lorenzo took of effect of the reduction in the margins of safety in the long term and increases the risk of the travelling public must confront in any decision on board an airliner operating under American jurisdiction. Eastern has disappeared, and Continental was joined in bankruptcy by Midway, America West, while Pan American sold a large part of its operations to Delta all teeters on the brink of liquidation. Icahn TWA is bankrupt in every sense except the final technicalities. Northwest, having been taken through the wringer of a LBO by Albert Cecchi, is now occupied by subsidies from the State of Minnesota and other sources as a way to stay afloat the tail. It is widely accepted that when the dust settles, only Delta, American, and perhaps the United States will remain among the major carriers throughout the country. At this time hundreds of communities are served by only one air carrier, and this airline will increase its rates without fear of competition by the price or any other form of competition. With this, air travel will float out of reach of a large part of the American middle class, and the final fruits of deregulation of air transport will manifest. In the meantime, must fear that the erosion of safety margins will be exact a toll growing lives in aircraft accidents. In the event of such tragedies, the bereaved family members will recall friend of George Bush Frank Lorenzo.
And how, the reader may ask, was George Bush do financially while surrounded so many billion in bonds at high risk? Bush always had pontificated that he led the fight for full disclosure of personal financial interests by elected officials. He never tired to repeat that ‘in 1967, in as long as member of the first year of the House of representatives, I led the fight for financial revelation complete.’ But after he was elected to the vice presidency, Bush stopped disclosing its investments in detail. It said its net value, which is passed to $2.1 million at the time of the election of 1984, which represents an increase of some $300 000 over five years. Bush has justified its refusal to disclose its investments in detail by saying that he did not himself just what titles he has held, since its portfolio was now in the above blind faith. The trust was administered by W.S. Farish & Co. of Houston, owned by close crony Bush William Stamps Farish III of Beeville, Texas, the descendant of the Executive of Standard Oil, who had supported, Heinrich Himmler and the SS Waffen. [fn 13]
1 Walter Pincus and Bob Woodward, « Doing well with the help of the family, Freinds », Washington Post, August 11, 1988.
2 Houston Chronicle, February 21, 1963. See available in Texas Historical Society, Houston cuts.
3 Thomas Petzinger, oil and honor (New York, 1987), pp. 244 – 245.
4 see the Washington Post, February 5, 1989.
5. for the relationship between George Bush and Henry Kravis, see Sarah Bartlett, the money Machine: how KKR manufactured Power & profit (New York, 1991), pp. 258 – 259, 267-270.
6 Roy C. Smith, the wars of money (New York, 1990), p. 106.
7 Bartlett, pp. 269-270.
8. the Washington Post, September 29, 1988.
9 Judy Mann, « Bush Top Achievement », Washington Post, November 2, 1988.
10 William Greider, Rolling Stone, April 12, 1984.
11. « bush denies influencing tax drugs sound proposal, » Washington Post, May 20, 1981.
12 Jack Anderson and Dale Van Atta, « Bush-Lorenzo connections », Washington Post, December 21, 1989.
13 James Ridgway, the tax records of Reagan and Bush, Texas Observer, 28 September 1984.
Surviving the Cataclysm
George Bush: the unauthorized biography – by Webster g. Tarpley & Anton Chaitkin
Chapter – XX- The fake war on drugs
Everyone takes me pour a good man; But the pure truth is that I worth nothing.
An indispensable element of the mythical media, which George Bush has accumulated over the years to support his electoral aspirations was his role as a fighter in the fight against drugs. His first address of officially planned presidential TV primetime to the nation in September 1989 was devoted to announce his plans for the measures to combat the illegal narcotics that continue to flood the sreets of the United States. During his election campaign of 1988, Bush stressed his registration as a point man designated by President Reagan in the administration against the drug war with incredible convenience.
In his acceptance speech at the Republican National Convention in 1988, Bush said: « I want a drug-free America. Tonight I challenge to the youth of our country to stop drug traffickers around the world… My Administration will say dealers, « everything we do, we’ll do it, but your day is over. You are history. « »
Indeed, Bush has an impressive CV of bureaucratic titles to back up its claim to be best fighter to combat drugs in America. January 28, 1982, Reagan created the Working Group in South Florida under the direction of high-profile Bush to coordinate the efforts of various federal agencies to stem the flow of narcotics in the Bailiwick of old Bush family. March 23, 1983, Bush has placed system National Narcotics border ban, which was supposed to stop the flow of drugs over all the borders of the United States. In August 1986, US officials presented their Mexican counterparts a scheme called operation Alliance, a new border enforcement initiative, which would have been to make the U.S.-Mexican border area that the Working Group of the South Florida had have already done to the Southeast States. George Bush was appointed Chief of staff of the Alliance operation, which included 20 federal agencies, 500 additional federal agents and a budget of $266 million.
To top it all of these efforts, Bush sought to get a cameo for a cameo role in the TV series Miami Vice. It is perhaps inspired by his mentor, Kissinger, who had gone through a cameo of his own on dynasty. But Bush was unable to fulfill his dream.
The scourge of drugs is an area in which the national interest demands results. Illegal drugs are one of the most important causes of the dissolution of the American company at the present time. To intercept the flow of drugs and continue the laundering drug money at the top of the banking community would have represented a real public service. But Bush had no intention of seriously pursuing these objectives. For him, the war on drugs was more than a cruel hoax, a cynical exercise in self-promotion demagogic, designed in large part to conceal activities by itself and its networks promoted this drug trafficking. An episode more shocking that came to light in this regard has 14 years of Bush befriended a member of Meyer Lansky’s Miami circles who sold his valuable trophy boat Cigarette Bush loyalty.
Bush war on drugs has been a rhetorical and PR success for once. February 16, 1982, in a speech on his own land in Miami, Florida, Bush promised to use sophisticated military aircraft to track the aircraft used by the smugglers. A few days later, Bush ordered the U.S. Navy to send its surveillance E2C aircraft for this purpose. If these were not available in sufficient numbers, Bush said he was determined to bring the largest and more sophisticated alert type AWACS early to do the job. But Bush skills as a shipper interagency leaves much to be desired: in may, two four E2C aircraft that had originally been in Florida have been transferred out of State. In June, Airborne surveillance time was running barely 40 hours a month, not the 360 hours promised by Bush, prompting Rép Glenn English to call hearings on this subject. In October, 1982, that the General Accounting Office issued a notice in « it is doubtful if [South Florida] task force can have any substantial impact on long-term availability of drugs. » But titles have been caught by Bush, who said in 1984 that the efforts of its working group had eliminated the marijuana trade in the South of Florida. This is an absurd request, but it sounded very well. When Francis Mullen. Jr., administrator of the Drug Enforcement Agency (DEA) has criticized Bush for this wildly inaccurate statement, he was quickly ousted from his position at the DEA.
In 1988, Democratic Congress Glenn Français concluded that Bush « war on drugs » fought with « little more than fine words and releases press. English wrote: « there was very little substance behind the rhetoric, and some of the major problems of ban must still be resolved. Assigned President… Bush to coordinate and direct federal anti-drug-abuse programs between different law enforcement agencies. However, eight years later it is obvious that the task has not been accomplished. « [footnote 1] no still closeted observer actually might dispute this very pessimistic assessment.
But the truth is much more ugly. We have documented in detail how the Iran-contra drug traffickers and arms trafficking of court’s own office of Bush operations have played their role in the increase of heroin, crack, cocaine and marijuana into this country. We examined the ties of Bush with his followers in the LBO of Wall Street gang, a large part of whose liquidity is derived from payments of narcotics that the banking system is willing to recycle them and wash them. We recall the meeting 1990 Bush with Syrian president Hafez Assad, who is personally one of the most prolific pushers of drugs on the planet, and that Bush has embraced as an ally during the Gulf crisis.
Profile ‘soft on drugs »Bush went further. In the theatre of Pakistan and Afghanistan, for example, it was obvious that certain formations of pro-Khomeini among the Afghan guerrillas were, as the contras, more interested in the drug trafficking and firearms in the struggle against the Soviet-backed Kabul regime and the Red forces army that he maintained power. It was reported that these activities on the part of these guerrilla groups have been detached by portions of the secret services of Pakistani intelligence, the inter-services Intelligence, and the national logistics cell. According to these reports, the visit of Bush to the general President Zia ul – Haq of Pakistan in May 1984 was conducted in full awareness of these phenomnena. Nevertheless, Bush has chosen to rent the successful prosecution of the programme to combat narcotic drugs, the Zia Government, Bush intoned, was a matter of « personal interest » for him. At the banquet where Bush made these remarks present were, reportedly, several of the most responsible for drug trafficking in Pakistan. [fn 2] But there is a still more obvious aspect of conduct of Bush, who can be said to be demolished once and for all the myth of the ‘war on drugs’ and replace it with a so grim reality that this goes beyond the imagination of most citizens.
Those who follow the frenzied sports of Bush on television are probably familiar with outboard of Bush, in which he is accustomed to frolic in the waters off of his estate at Walker at Kennebunkport, Maine. [fn 3] The craft in question is loyalty, a power boat capable of operating on the high seas. Fidelity is a class of boat marketed under the name of « Cigarette », nicknamed expensive outboard « the Ferrari of the high seas ». This detail should arouse our interest, since the profile of Bush as an Anglo-Saxon Aristocrat would normally include a distinguished predeliction for sailing, and not a preference for a vulgar hotrod like Fidelity, which evokes the ethos of rum-runners and smugglers.
Boat Cigarette fidelity was purchased by George Bush to a certain Don Aronow. Bush met Aronow during a performance of boat in 1974 and decided to buy one of the cigarettes that manufactured aronow boats. Aronow was one of the most famous and most successful 1960s powerboat runners and had then turned his hand to the design and construction of these boats. But according to at least one published account, there is strong evidence to conclude that Aronow was a drug trafficker and the launderer of suspects – the drug money linked to the Genovese Purple Gang of New York City in the more general framework of the organized by Meyer Lansky crime syndicate. Aronow role in smuggling marijuana would have been confirmed by Bill Norris, head of the unit’s Major narcotics to us Attorney Miami Office and therefore the official prosecution of top federal drug in South Florida. [fn 4]
Aronow was among his friends and acquaintances and not only Bush, but many international personalities and celebrities, which many had bought the boat he built. Wife of Aronow was supposed to be a former girlfriend of King Hussein of Jordan. Aronow was in contact with King Juan Carlos of Spain, Lord Lucan (Billy Shand-Kydd, a relative of the mother of Princess Diana), Sir Max Aitken (the son of the baron of British press Lord Beaverbrook), Prince Rainier and Princess Grace of Monaco, President of Eastern Airlines and former astronaut Frank Bormann, heir to the Kimberly-Clark Jim Kimberley, Alvin Malnik (one of the reputed heirs of Meyer Lansky) and Charles Keating Subsequently the protagonist of the Lincoln Savings and Loan scandal. Some of these exalted knowledge are suggestive of strong intelligence connections as well.
In May 1986, Aronmow has received a letter from Nicolas Iliopoulos, the captain of the royal boat to King Hussein of Jordan expressing satisfaction with a power boat purchased to Aronow, on behalf of the King, and carrying the compliments of the King Juan Carlos of Spain and president Hosni Mubarak of the Egypt, which had recently been invited by the Jordanian ruler on board. Aronow sent a copy of this letter to Bush, from whom he received a reply dated June 6, 1986 in which Bush thanked « with best greetings » to transmit the Royal note and added: « I can repeat my Cigarette, »faithfulness »old works well also. » I got two weekends and engines were buzzing. I hope our paths cross soon, my friend. « [fn 5]
Aronow was reportedly a close friend of George Bush. In his account of book-length of the life and death of Aronow which serves as base for the analysis that follows, Thomas Burdick quoted an anonymous official of Ministry of Justice concerning the observations of one of his friends on the relationship of Bush-Aronow: « my friend said: »I assure you that I know what the connection was between him and Bush. » It is the boats. The guy loves fucking boats. « A secret service officer also called Bush as a »boat groupie. [fn 6] But if it exhausts the topic?
Over the years, Bush had apparently consulted Aronow regarding maintenance and the maintenance of his Cigarette boat. In 1983, Bush began to seek the company of Aronow fishing trips. The original engines on Bush’s Cigarette boat was in need of replacement, and it was the ostensible occasion for renewing contact with Aronow. Aronow said Bush with a new boat model he had designed, supposed to be a high-performance catamaran. Bush was scheduled to come in Florida during the holidays of the new year for short vacation during which he would go bonefishing with boyfriend Nick Brady. Meanwhile, it would also organise to deliver a speech of encouragement anti-drug.
January 4, 1984, George Bush recovered Don Aronow in Islamorada in the Florida Keys only. Earlier in the day, Bush had delivered one of his ‘war against drugs’ speeches at the Omni International Hotel in Miami. Bush and Brady then in procession in Islamorada, where Aronow was waiting with his catamaran. Accompanied by a flotilla of secret service and customs agents in cigarette boats that had been seized from drug traffickers, Bush, Brady, Aronow and one of the vassals of the latter, the catamaran is committed in a swell moderate in Miami, with White House photographers perpetuate the meeting of photos at every moment. Bush, who had donned the glasses of course designer for the occasion, was allowed to take the wheel of the catamaran and seemed very happy and very pleased. Nick Brady, wearing his own glasses wrap around, found the seas too rough for his taste.
After the trip, Bush personally typed the following letter to Don Aronow on his vice presidential staionery, he sent along with some pictures of Bush, Aronow, Brady and others aboard the catamaran:
January 14, 1984
Here are some very good shots which I hope will bring back some very good memories. I’ve included a picture signed in your package for [Aronow driver] Randy [Riggs]. Also [sic] join a series of photo for Willie not having his domicile or how it spells Myers? Will you please give them to him and thank him for his role in our wonderful output. He is quite a guy and I learned a lot from him on the way up to Miami from key.
New donation this day was one of the greatest of my life. I love boats, always have. But since you knowing that my life private-side became still more exciting and fulfilling. Either way, I don’t have to tell you but my 28 footer reliable Cigarette that does very well… no harm at all and the new engines of the past year.
All the best to you and all of your exciting projects. May all your Bee [sic] number one boat and the hosres [sic] may not be far behind.
At the end of this post, before his signature, Bush wrote hand, « my typing stinks. » [fn 7]
Following this release, Bush is supposed to have used his influence to ensure that Aronow was awarded a contract to build Blue Thunder catamarans at $150 000 each for the Customs Service. This agreement was announced with great fanfare in Miami on February 4, 1985 and was celebrated a week later, at a public ceremony in which the Senator from Florida Paula Hawkins and US Customs Commissioner William von Raab mugged for photographers with Aronow. The purchase of Government has been publicized as the first time that Customs would receive boats specially designed and constructed to intercept the riders of drugs on the high seas, a major step forward in the war against drugs.
It was the same George Bush who, in March 1988, stated: « I will never negotiate with drug traffickers on U.S. or foreign soil.
As a local resident recalled of the time, «everyone in Miami knew that if you needed a favor from Bush, you spoke to Aronow.» [fn 8] It was proverbial at the PPS of Florida and powerbrokers Aronow has ear of the vice President.
The Customs found soon that catamarans Blue Thunder were very poor condition of airworthiness and highly inappropriate for the task to track down the other boats, including especially Aronow more early model Cigarette boats, which were now being manufactured by a company not controlled by Aronow. Blue Thunder has been relatively slow class, capable of a maximum speed of only 56 miles per hour, despite the presence of 440 engines seahorses. The design of the catamaran hulls did not hydrodynamic advantages, and the boats were too heavy to reach sufficient lift. Stern drives were too weak for powerful engines, leading to the problem of the « grenading’: when broken driveshafts, which was often, the engines started to rev well beyond their red line, leading to the explosion or engine disintegration and dispersion of sharpnel – like fragments of steel red-hot by the boat. This meant that ships should be much lower maximum speed. Most of the blue thunders past more ongoing repair time that Chase drug runners in the coastal waters of Florida. Blue Thunder was in the ‘wet’ nautical language, « a lemon full, useful only for sessions photos and publicity stunts.
Documents found by Burdick at the Dade County land records office show that USA Racing, operated by Aronow which built Blue Thunder catamarans for the customs service was not its shareholders through Aronow, but rather by a a Jack J. Kramer in his capacity as president of the South head of Super. Jack Kramer had married a niece of Meyer Lansky. Jack Kramer Ben Kramer’s son was the great-nephew and one of the putative heirs of the top boss of the crime syndicate in the United States, Meyer Lansky. Ben Kramer was also a notorious organised crime in its own right. March 28, 1990 Jack Kramer and Ben Kramer were both convicted of 23 and 28 (respectively) federal counts of money laundering. The previous year, Ben Kramer had also was sentenced to life imprisonment without parole for having imported the half 1 million pounds of marijuana. Bush had thus given a main contract in the war against drugs to one of the main families of drug trafficking and of laundering of crime in the United States.
Don Aronow was murdered by professional killers of mafia-type February 3, 1987. During the last days of his life, Aronow is reported having conducted numerous personal calls to Bush. Aronow knew that his life was in danger, and that he had left a list of instructions to tell his wife what he should do if anything happened to him. The first item on the list was « No. 1. » APPEAL OF GEORGE BUSH. » [fn 9] Lillian Aronow called Bush, who would have responded by placing a personal appeal to the homicide division of Police of MetroDade service to express his concern and to request a quick handling of the case. Bush did not attend the funeral of Aronow, but a month later, he sent a letter to son Gavin of Aronow which he called at the end Don Aronow « a hero ».
When Lillian Aronow suspected that his phone was bugged, she called Bush, who urged to be calm and promised to order an investigation of the case. Shortly thereafter, the suspicious noises in the Ms. Aronow phone ceased. When Lilian Aronow learned that her husband could have murdered by the CIA’s rogue or other wayward federal agents and that she and her children were still at risk, she shares her fears in a telephone call to Bush. Bush would later called Ms. Aronow and, as she recalled, « he told me, ‘ Lillian, you’re fine. ». He said that « ex-CIA people are really off. » It is the truth. « [fn 10] later, Ms. heard Aronow as Noriega genesis of the Panama was interested in buying some of his boats, and she began to plan a trip to the Panama hoping to generate orders. Before her departure, she said that she called Bush, who advised him against making the trip because of the involvement of Noriega in « bad things ». Ms. Aronow cancel their reservations for Panama City. But in the summer 1987, Bush snubbed Mrs Aronow avoiding him ostensibly at a dinner in Miami. But during this same period, Bush has frequently gone fishing with Aronow employee Willie Meyers, mentioned in the above letter. According to sources of Thomas Burdick, Willie Meyers was also a friend of Secretary of State George Shultz and often feared damage to Bush and Shultz advertising which may derive from the case of Aronow.
According to Thomas Burdick, Meyers said that Bush spoke to him how vice president staff monitored the investigation Aronow. Bush said that he had no grounds to involve federal agencies. « I wish, » said Bush to Meyers, « that there were some federal aspects to the murder. If the killers crossed state lines. Then I could get the FBI involved. » [fn 11] The form of the argument is reminiscent of the views expressed by Bush and Tony Lapham during the Letelier case.
In may or June 1987, several months after Aronow was killed, Mike Brittain, who owned a company called aluminium products from the sea, located « Thunderboat Alley » in the northern part of Miami (the same street where Aronow worked), was approached by two special agents of the FBI, Joseph Usher and John Donovan, both of the local office of the FBI in Miami. They were accompanied by a third man in the FBI, which they presented as a member of the staff of George Bush to the National Drug Task Force in Washington, DC. The third officer, would have been named William Temple, was, according to the other two, come to Miami on a special mission, commanded by the Vice President of the United States of America.
Brittain told her story to Burdick, Temple of special Agent « did not ask about the murder or anything like that. » Everything he wanted to know on was the merger. « [fn 12] the merger was the assumption of control over the society of Aronow, USA Racing, by Super Chief of South of the Kramers, which meant as a major contract in the Bush » war on drugs « had been awarded to a company controlled by individuals who would later be convicted for trafficking marijuana and money laundering. ». Many questions by the FBI focused on the link between Aronow and Kramer. Later, after the victory of Bush in the election Presidential 1988, the FBI again asked Brittain, and again, the central issue is the connection Aronow-Kramer, more questions about whether Brittain had disclosed his knowledge of these issues to other people. A possible conclusion was that a favour Bush damage control operation was underway.
Tommy Teagle, a former inmate interviewed by Burdick, George Bush would have brought fears killed because the information in its possession it would involve Jeb Bush in cocaine smuggling. History of Teagle was that Aronow and Jeb Bush had been partners in cocaine trafficking and were $2.5 million debt to their Colombian suppliers. Dr. Robert Magoon, a friend of Aronow, is quoted in the same location after hearing a similar report. But Teagle quickly changed his story. [fn 3] Ultimately, a jailed convict has been charged for the murder of Aronow.
But the circumstances of the murder remain highly suspicious. Beginning in 1985, and with a special intensity during 1987-88, more than two dozen people involved in various aspects of the Iran-contra, trafficking in arms and drug-running operation met their death. At the same time, others knowledge of the Iran-contra, but one or more stages of knowledge of eyewitness to these operations, have been subjected to campaigns to discredit and slander, often related to indictments on a variety of charges, fees that often arise from the Iran-contra operations themselves. Beyond the details of each case, model of all of these deaths strongly suggests that they are also consistent with a control operation of the networks involved damage, fight against damage which focused on persons whose testimony could prove to be the most damning for the leaders of these networks of liquidation. The death of Don Aronow occurred within the time of this general process of amputation and Cauterization of the Iran-contra and related networks. Many aspects of the life of Aronow suggests that his assassination could be a product of the same logic to « limit the damage ».
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1. for Bush « war on drugs », see Jack Anderson and Dale Van Atta, « how Bush ordered the War on Drugs, » Washington Post, June 20, 1988; «Lawrence Lifschultz, « Bush, drugs and Pakistan: inside the Kingdom of heroin, » Nation, November 14, 1988; Drug Czars have known us « the Nation, February 27, 1989; and Robert A. Pastor and Jorge Castaneda, limits to friendship: the United States and Mexico (New York, 1988), p. 271.
2. « bush, drugs and Pakistan, » the Nation, November 14, 1988.
3 see the cover of Newsweek magazine, October 19, 1987 « the Wimp factor, combat », which portrays Bush in command of loyalty. A similar photo appears opposite p. 223 to George Bush and Vic Gold, Looking Forward (New York, 1987).
4 see Thomas Burdick and Charlene Mitchell, Blue Thunder (New York, 1990), p. 229 Account of the relationship between Bush and Aronow relies on this remarkable study.
5 blue Thunder, p. 182.
6 blue Thunder, p. 235.
7 blue Thunder, p. 18.
8 blue Thunder, p. 34.
9 blue Thunder, p. 71.
10 blue Thunder, p. 95.
11 blue Thunder, p. 103.
12 blue Thunder, pp. 326-327.
13 blue Thunder, p. 351, 357.