import export business

"The CIA is a bureaucracy which feeds on itself, and those involved are constantly sitting around thinking up schemes for [foreign] intervention which will win them promotions and justify further additions to the staff. It self-generates interventions that otherwise never would be thought of, let alone authorized." - Senator Frank Church

A pattern becomes apparent in regimes installed or supported by the Central Intelligence Agency.

Nearly every regime seems to derive a portion of its cash flow from the distribution of narcotics as in the absence of a popular base for externally installed puppets external funds are needed for political repression.

There is always someone very close to the installed puppet, typically a relative, that is heavily involved in a narcotics supply network.

In Taiwan Chiang Kai-shek and his brother-in-law TV Soong.

In Mexico Luis Echeverría Álvarez and his brother-in-law Rubén Zuno Arce.

In Iran Mohammad Reza Shah Pahlavi and his twin sister Ashraf Pahlavi.

In Vietnam Ngô dình Diem and his brother Ngô dình Nhu.

In Afghanistan Hamid Karzai and his brother Ahmed Wali Karzai.

Laos broke the close family tie rule as Phoumi Nosavan used Ouane Rattikone.

1947-1954 First Indochina War the French SDECE military intelligence agency was in need of money for its covert operations.

Its officers contacted opium producers in the Golden Triangle, and set up an international system of smuggling, the "French Connection", aided by intelligence and other aid from SDECE.

An alliance between the Corsican Mafia, who had an historical presence in South Vietnam dating back to the French occupation, and leading members of the American and Sicilian Mafia, under the leadership of Lucky Luciano, who had been imprisoned in the US during World War II for racketeering, is forged.

Lucky Luciano was asked to provide assistance to American military intelligence about Axis infiltration of the waterfront in American ports (which was effectively controlled by the Mafia), as well as assisting Allied forces in their invasion of Sicily and Italy.

Luciano used his contacts in the Sicilian Mafia to assist US forces by gathering intelligence and identifying both fascist collaborators and Socialist/Communist elements in the Italian résistance movement, who were then systematically eliminated.

Luciano was covertly permitted to run his crime operations from prison, and at the end of the war he was deported back to Sicily, where he immediately began a major expansion of his drug operations, forging alliances with Corsican Mafia members in South Vietnam and organized crime figures in other countries, including Australia.

1950 Drug lords in Burma are recruited in operations against China.

1959 Opium traffic identified as an alternative source of income for Laotian government of Phoumi Nosavan.

1965 to 1975 Drug trafficking in Laos.

Laos becomes one of the largest Heroin™ producing centers in the world.

Support is provided General Ouan Rattikone (Phoumi's successor) and his drug-funded army.

Airplanes are supplied for opium transportation and intervene militarily with air support in battles over contested opium caravans.

"American involvement had gone far beyond coincidental complicity; embassies had covered up involvement by client governments, contract airlines had carried opium, and individual agents had winked at the opium traffic. As an indirect consequence of American involvement in the Golden Triangle, opium production steadily increased. Southeast Asia's Golden Triangle grew 70% of the world's illicit opium, supplied an estimated 30% of America's Heroin™, and was capable of supplying the United States with unlimited quantities of Heroin™ for generations to come." - Alfred W. McCoy

Gary Webb on CIA Trafficking of Cocaine

The CIA’s Plans for a Drugged & Debilitated USA

How the CIA Watched Over the Destruction of Gary Webb

"For the better part of a decade, a San Francisco Bay Area drug ring sold tons of cocaine to the Crips and Bloods street gangs of Los Angeles and funneled millions in drug profits to a Latin American guerrilla army run by the CIA." - Gary Webb

1977 Norwin Meneses Cantarero, known as El Rey del Drogas (the king of drugs), feels the heat of a Nicaraguan customs probe into his smuggling of high-end North American cars from the US into Nicaragua so his gang murders the chief of customs.

Norwin Meneses Cantarero comes from a family intimately linked to the Somoza dictatorship.

One brother had been chief of police in Managua.

Two other brothers are generals in the force most loyal to Somoza, the National Guard.

The US Drug Enforcement Agency and other agencies began keeping files on Meneses in 1974.

1979 Sandinista revolution evicts Anastasio Somoza and his corrupt regime.

Norwin Meneses Cantarero is granted political refugee status when he and other members of Somoza's elite flee to the US.

Norwin Meneses Cantarero, "head of security and intelligence" for the leading organization in the Contra coalition the Fuerza Democratico Nicaraguense works with Enrique Bermudez, Oscar Danilo Blandon, a cousin, and Adolfo Calero.

They set up a cocaine distribution ring in San Francisco, establishing ties with Freeway Ricky Ross who manufactures crack out of shipments of powder cocaine and distributed it through the black street gangs of South Central Los Angeles throughout America.

Profits made by the Nicaraguan exiles are funneled back to the Contra army.

The son of a Managua slumlord, Blandon headed Somoza's agricultural export program as an important component of the country's mainly beef and coffee based economy.

The Somoza family owns at least a quarter of the nation's agricultural land.

In his position as head of the export program, Blandon has developed close ties to the Department of Commerce and the State Department.

He secures $27 million in USAID funding and is well known to the US military and the CIA, both of which have a commanding presence in Somoza's Nicaragua. (Somoza had sent his officer corps for training in the US, and the CIA station chief was the most powerful foreigner in Managua.)

Blandon's wife, Chepita, also came from a powerful clan, the Murillo family.

One of her relatives was the mayor of Managua.

Both the Blandon and Murillo families lost their land locked fortunes in the 1979 revolution.

In Somoza's final days, Jimmy Carter made a last-ditch effort to maintain a US-backed regime in Nicaragua even if Somoza should be forced to quit.

The plan is to preserve the National Guard as the custodian of US interests.

This plan fails.

The Sandinistas sweep into power, Carter orders the initial funding of what later becomes known as the Contras, operating out of Honduras.

The CIA mustered Argentinian officers fresh from their own death squad campaigns, and these men began to organize the exiled National Guardsmen into a military force.

Enrique Bermudez had been a colonel in the National Guard, had trained at the US National Defense College and had served from 1976 to July 1979 as Somoza's military attache in Washington.

Furnished with $300,000 in CIA money, Bermudez took command of the fledgling Contra force in Honduras.

1980s Support provided to the warlord Gulbuddin Hekmatyar, leader of the Hezbi-i Islami guerilla group in Afghanistan.

"The boom in the Pakistan drug trade was financed by BCCI."- Alfred W. McCoy

1981 Bermudez announces the formation of the FDN and his own position as commander of its military wing.

The CIA script later installs Adolfo Calero, formerly the Coca-Cola® concessionaire in Managua, as the FDN's civilian head, operating mainly out of the US, where he was under CIA supervision.

Reagan approves National Security Directive 77, which provides a budget of $19.3 million for the Contras.

April 13, 1989 "Bermudez was the target of a government-sponsored drug sting operation." - John Kerry, chairman committee investigating Contra cocaine smuggling. "Law enforcement officials know that the sting was called back in the interest of protecting the Contras."

"There's a saying," Blandon testified, "that the ends justify the means. And that's what Mr. Bermudez told us in Honduras."

Kerry Committee report concludes that members of the State Department "provided support for the Contras involved in drug trafficking ... elements of the Contras received financial and material assistance from drug traffickers."

November 1993 Judge Robert C. Bonner, the former head of the DEA, appeares on 60 Minutes and alleges that the CIA had permitted literally a ton of cocaine to enter the US.

1996 Gary Webb writes a series of articles published in the San Jose Mercury News which investigates the Nicaraguans linked to the CIA-backed Contras who had smuggled cocaine into the US.

According to Gary Webb, the CIA was aware of the cocaine transactions and the large shipments of drugs into the US by the Contra personnel and directly aided drug dealers to raise money for the Contras.

CIA Director John M. Deutch went to Los Angeles to refute the allegations raised by the Gary Webb articles, and was famously confronted by former LAPD officer Michael Ruppert, who said he had witnessed it occurring.

A Miami jury indicted former Venezuelan anti-narcotics chief and CIA asset, General Ramon Guillen Davila, who "led a CIA counter-narcotics program that put tons of cocaine on US streets in 1990."

2001 The American presence in Afghanistan is weakened initially by its dependence on a drug-trafficking Tajik-Uzbek minority coalition - the Northern Alliance led by Ahmad Shah Massoud.

"Since 2002, the prosecution of the war in Afghanistan ‘at all levels' has been based on an implied strategy of attrition via clearing operations virtually identical to those pursued in Vietnam. In Vietnam, they were dubbed "search and destroy missions;" in Afghanistan they are called "clearing operations" and "compound searches," but the purpose is the same, to find easily replaced weapons or clear a tiny, arbitrarily chosen patch of worthless ground for a short period, and then turn it over to indigenous security forces who can't hold it, and then go do it again somewhere else." - Thomas Johnson

US-CIA Heroin Transit Base Proven

CIA's Afghanistan Bribes Under Scrutiny

The CIA/MSM Contra-Cocaine Cover-up

Afghan Leader Confirms Cash Deliveries by C.I.A.

Anti-Drug Unit of C.I.A. Sent Ton of Cocaine to US in 1990

The Politics of Heroin; CIA Complicity In The Global Drug Trade

The Real Drug Lords: A brief history of CIA involvement in the Drug Trade

"CIA are drug smugglers." - Head of DEA said this too late for Gary Webb

money laundering

dirty money

CIA controlled banks have been involved with money laundering activities.

Castle Bank was replaced by the Nugan Hand Bank, who had as legal council William Colby, retired head of the CIA.

A Senate staff report has estimated "that $500 billion to $1 trillion in criminal proceeds are laundered through banks worldwide each year, with about half of that amount moved through United States banks."

The London Independent reported in 2004 that drug trafficking constitutes "the third biggest global commodity in cash terms after oil and the arms trade."

Washington and the mass media have portrayed the US in the forefront of the struggle against narco trafficking, drug laundering and political corruption: the image is of clean white hands fighting dirty money from the Third world (or the ex-Communist countries).

The truth is exactly the opposite.

US banks have developed a highly elaborate set of policies for transferring illicit funds to the US, investing those funds in legitimate businesses or US government bonds to legitimize them.

The US Congress has held numerous hearings, provided detailed exposés of the illicit practices of the banks, passed several laws and called for stiffer enforcement by any number of public regulators and private bankers.

Yet the biggest banks continue their practices, the sums of dirty money grows exponentially, because both the State and the banks have neither the will nor the interest to put an end to the practices that provide high profits and buttress an otherwise fragile empire.

In the wake of the 2008 economic crisis, this analysis found support from the claim of Antonio Maria Costa, head of the UN Office on Drugs and Crime, that "Drugs money worth billions of dollars kept the financial system afloat at the height of the global crisis."

According to the London Observer, Costa said he has seen evidence that the proceeds of organized crime were "the only liquid investment capital" available to some banks on the brink of collapse last yearand that the majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.

"In many instances, the money from drugs was the only liquid investment capital. In the second half of 2008, liquidity was the banking system's main problem and hence liquid capital became an important factor" - Antonio Maria Costa

As I have observed elsewhere about the US campaign against the FARC and cocaine in Colombia, the aim of all US anti drug campaigns abroad has never been the hopeless ideal of eradication.

The aim of all such campaigns has been to alter market share: to target specific enemies and thus ensure that the drug traffic remains under the control of those traffickers who are allies of the state security apparatus and/or the CIA.

This was notably true of Laos." - Peter Dale Scott

unique library index

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