by DAVID HOFFMAN
(This chapter was omitted from the printed edition of Oklahoma
City Bombing and the Politics of Terror by David Hoffman)
"This underground empire is controlled by a handful of people for money
that's the only secret of the temple."
Investigative reporter Danny Casolaro, prior to his murder by the Octopus
The nomenclature of the Lockerbie and World Trade Center bombings provide a
unique and unparalleled insight into the dynamics of the Oklahoma City bombing.
Each event gives the reader a glimpse of how the Shadow Government operates,
utilizing drug dealers, criminals, and terrorists to do its bidding.
All three bombings were sting operations that utilized, and were utilized by,
terrorists bent on causing destruction.
But the question still remained: who was controlling the terrorists? To understand
that, one must peer through the doorway of time stretching from WWII to the
To prepare for the invasion of Sicily during WWII, the OSS (which later became
the CIA) collaborated with the Corsican Mafia.
The arrangement permitted the Mafia use the port of Marseilles for heroin smuggling
in exchange for its assistance in defeating the Nazis.
After WWII, the heroin operation moved to Vietnam and Laos, then to Afghanistan
and Pakistan, as the CIA embroiled itself in a covert war against the Soviets.
Assistant Secretary of Defense for National Security Affairs Richard Armitage
sat on the "208 Committee," which oversaw military aid to the Mujahadeen.
Fazoe Haq, the governor of the Northwest Frontier Province (the largest heroin
growing province in Afghanistan), who was originally worth $100,000, was suddenly
was worth $200 million after the war. Armitage was his main contact.
Vince Cannistraro (Mr. "Libya done it") also sat on the 208 Committee,
representing National Security Advisor Robert "Bud" McFarlane, Oliver
Shortly after the start of the Afghani operation, the CIA began arming the
Contras in Nicaragua. Cannistraro himself [along with Duane "Dewy"
Clarridge, then Chief of the CIA's Latin American Division] headed Casey's original
operation to arm the Contras, based on Reagan's March, 1981 decision.
As former Green Beret Andrew Eiva said, "Cannistraro was up to his ears
by 1985." This is significant, considering the Boland Amendment, prohibiting
aid to the Contras, was passed in 1984.
Some of these are the same players who moved into other Central American countries,
setting up security services (death squads) for U.S.-backed dictators, and profiting
handsomely from the cocaine trade.
If anyone thinks these are outrageous allegations, consider the statements
of Mike Levine, one of the DEA's most highly decorated veterans: "For decades,
the CIA, the Pentagon, and secret organizations like Oliver North's Enterprise
have been supporting and protecting the world's biggest drug dealers,"
including the Mujahadeen in Afghanistan, the Contras in Central America, the
DFS in Mexico, the Shan United Army in the Golden Triangle of Southeast Asia,
and "any of a score of other groups and/or individuals like Manuel Noriega.
Support of these people has been secretly deemed more important than getting
drugs off our streets."
Or consider the words of Lt. Col. Bo Gritz, former commander of the Special
Forces in Latin America and the most decorated soldier in Vietnam.
Gritz made a trip to the Golden Triangle in 1983 to search for American POWs,
a mission that was ultimately stonewalled. Gritz believes the POWs are being
used as drug mules, and the government doesn't want them returned alive, for
fear they would expose the Octopus.
As Gritz said: "[They] would not want the American POWs to come home.
Because when they do, there will be an investigation as to why they were abandoned.
At that time we will uncover this secret organization and its illicit drug money
and financing. The Secret Team would then be exposed."
As Gritz later wrote in Called to Serve:
If Richard Armitage was, as Khun Sa avowed, a major participant in parallel
government drug trafficking, then it explained why our efforts to rescue POWs
had been inexplicably foiled, time after time...
If it was true, Richard Armitage would be the last man in the world who would
desire to see prisoners of war come home alive.
As "Special Consultant to the Pentagon on the MIAs," in Bangkok in
1975, Armitage reportedly spent more time repatriating opium profits then recovering
POWs. In 1976, when Khun Sa was still selling heroin to CIA officials, the head
of the CIA was none other than George Bush.
Former presidential candidate H. Ross Perot, who was appointed presidential
investigator for POW/MIA affairs, came upon the same information, and was warned
by former Defense Secretary Frank Carlucci to stop pursuing the connections
As he sadly explained to a group of POW/MIA families in 1987: "I have
been instructed to cease and desist."
Ironically, between 1987 and 1991, Vice-President Bush served as head of the
South Florida Drug Task Force, and later as chair of the National Narcotics
Interdiction System, both set up to "stem" the flow of drugs into
the U.S. While Bush was drug czar, the volume of cocaine smuggled into the U.S.
Celerino "Cele" Castillo, the DEA's head agent in El Salvador and
Guatemala from 1985 to 1991, told reporters and Senate investigators of numerous
known drug traffickers who used hangers controlled by Oliver North and the CIA
in El Salvador's Ilopango military airbase. When Castillo naively tried to warn
Bush at a U.S. embassy party in Guatemala, Bush "just shook my hand, smiled
and walked away "
"By the end of 1988," added Castillo, "I realized how hopelessly
tangled the DEA, the CIA, and every other U.S. entity in Central America had
become with the criminals. The connections boggled my mind."
"The CIA they're making deals with the Devil," adds Mike Levine.
"Unfortunately, the Devil is smarter than they are."
Some of those devils, like Monzer al-Kassar "business partner"
of Richard Secord and Oliver North would be utilized to do the Octopus's
Another name Khun Sa mentioned repeatedly was Ted Shackley. A long-time
CIA player, Theodore G. Shackley (known as "The Blond Ghost") began
his Agency career as CIA Station Chief in Miami, where he directed the CIA's
JM/WAVE Operation, a post-Bay of Pigs attempt to assassinate Fidel Castro and
wreck havoc within that sovereign nation. Utilizing Cuban expatriates, the CIA
conducted hundreds of sabotage raids against Cuba in direct violation of the
U.S. Neutrality Act. Shackley also worked in close partnership with Mob figures
John Roselli, Sam Giancana, and Santos Trafficante.
While the operation was shut down in 1965, due mainly to revelations of organized
crime connections and drug smuggling, many of the participants remained in Miami,
continuing their illegal activities.
Later, as Station Chief of Laos, Shackley directed Major General Richard Secord's
air wing in tactical raids against the Communist Pathet Lao, who happened to
be General Vang Pao's main competition in the opium trade.
By keeping the Pathet Lao busy with the help of the CIA and the American military,
Pao's Hmong tribesmen were able to become the region's largest heroin producers.
Of course, Shackley, his deputy Tom Clines (who supervised the air base in
Long Tieng), and their colleagues in CIA front companies like Air America were
only too happy to help, smuggling heroin to the U.S. in the gutted bodies of
dead GIs (with the assistance of their old Mob buddy Santos Trafficante, who
had helped form their ZR/RIFLE assassination team, and Vietnamese Air Force
General Nguyen Cao Ky), and laundering the profits in the Nugan-Hand bank. As
a 1983 Wall Street Journal article stated:
Investigations following Mr. Nugan's death and the failure of the bank revealed
widespread dealings by Nugan-Hand with international heroin syndicates, and
evidence of massive fraud against U.S. and foreign citizens. Many retired high-ranking
Pentagon and CIA officials were executives of or consultants to Nugan-Hand.*
Shackley, along with Nugan-Hand's attorney former CIA Director William
Colby directed the infamous "Phoenix Program," a largely successful
attempt to "neutralize" by torture and murder approximately 40,000
Vietnamese civilians suspected of being Viet Cong sympathizers. One Phoenix
operative, testifying before Congress, stated that Phoenix was "a sterile,
depersonalized murder program it was completely indiscriminate."
The assassinations would continue in Nicaragua under the code-name "Operation
After becoming the head of the CIA's Western Hemisphere operations (Latin American
Division) in 1972, Shackley supervised the overthrow of the Chilean government
("Operation Track II") by murdering democratically elected President
With the backing of the CIA under Shackley, the military led a violent coup
by Right-wing General Augusto Pinochet, which resulted in the abolishment of
the Constitution, the closing of all newspapers save for two Right-wing dailies,
the outlawing of trade unions, the suppression of all political parties, and
the arrest, torture, and execution of thousands.
After a brief stint as Director of the Far East Division, Shackley directed
CIA agent Edwin Wilson in training the Shah of Iran's notorious secret police,
the Savak, who routinely tortured and murdered the Shah's opponents. Later Shackley
would assist more directly in these efforts.
In 1975, Shackley became Associate Director in the Directorate of Operations,
which put him in charge of Covert-Operations, Counter-Intelligence, and ironically,
Counter-Narcotics, all under the command of George Herbert Walker Bush.
These associations naturally led to Shackley playing a role in the formation
of the "Secret Team," (to coin a phrase invented by Col. L. Fletcher
Prouty) the covert and illegal enterprise that was the driving force behind
the Iran-Contra operation.
Donald Gregg, one of Shackley's subordinates during his Saigon tenure, would
later become Assistant National Security Advisor during Iran-Contra, reporting
directly to Vice-President Bush.
It was against this backdrop that Shackley served as a "consultant"
to players such as Bush, Secord, North, and Casey in their illegal and bloody
guns-for-drugs network that resulted in tens of thousands of deaths and the
flooding of our streets with tons of drugs.
As Wall Street Journal reporter Jonathan Kwitny writes about Ted Shackley in
his book, The Crimes of Patriots:
Looking at the list of disasters Shackley has presided over during his career,
one might even conclude that on the day the CIA hired Shackley it might have
done better hiring a KGB agent; a Soviet mole probably could not have done as
much damage to the national security of the United States with all his wile
as Shackley did with the most patriotic of intentions.
Between Shackely's Cuban and Indochinese campaigns, more dope dealers were
probably put onto the payroll of the United States Government, and protected
and encouraged in their activities, than if the government had simply gone out
and hired the Mafia which, in the case of the Cuban campaign, it did.
CIA Director Admiral Stansfield Turner forced Shackley to resign from the Agency
in 1979, due to his "unauthorized" dealings with rogue agent Edwin
Wilson, who was selling plastic explosives to Libya (with Shackley's approval).
Had he not left, Shackley would likely have become head of the Agency.
George Bush, who headed the Agency in 1976, strongly desired to continue in
that post. He was not reappointed when Jimmy Carter took office.*
Moreover, Turner, who had little faith in HUMNIT (Human Intelligence) sources,
decided to reshape the CIA along more advanced technological lines. As a result
of Turner's infamous "Halloween Massacre," the CIA cut its field agents
from several thousand to just over 300.
As President Jimmy Carter would later state, "We were aware that some
of the unqualified and incompetent personnel whom he discharged were deeply
The old hands of the Agency, who formerly had at their disposal almost unlimited
"Black Budget" funds for covert operations, were suddenly forced into
retirement, or forced into lockstep with Turner's new guidelines.
Although CIA Director William Casey hired 2,000 new covert operators in 1980,
many CIA critics felt Turner's actions had already caused the secret cells of
the good-old-boy networks to bury themselves and their illegal activities
It is this element, birthed in the hysteria of the Cold War, legitimized by
the paranoia of the National Security state, and nurtured by the politics of
greed, that has buried itself in the core of American politics.
As long-time Army Criminal Investigator Gene Wheaton defines it: "An elite,
very clandestine, very covert group within the intelligence community .
The CIA and DIA is just the lightening rod for the people who really control
Those who could accept the idea of government foreknowledge of the Oklahoma
City bombing would be hard-pressed to accept the notion that certain factions
within the government might have orchestrated the bombing itself.
Those who have a difficult time accepting this are stymied by what they perceive
As Wheaton explains, "The government is just a bunch of monuments, office
buildings, computers, and desks. They don't see the crazies in the government
the little conspiratorial cliques within the government."
These little conspiratorial cliques the same players that Shackley intersects
with, going back to Cuba, Laos, Afghanistan and Nicaragua have been involved
for decades in everything from drug and gun-running, to assassinations, covert
warfare, and outright terrorism.
It is a terrorism that increasingly has no particular face, no ideological
credo, no political goal. It is a terrorism motivated by power and greed.
By no means the lone man behind the curtain, Ted Shackley represents one of
the more visible of this lexicon of covert operators upon whom the powers that
be depend on for their endless supply of "black ops" and dirty tricks.
Perhaps this is how Shackley knows, or seems to know, the complex truth behind
It is a truth that remains hidden behind a sophisticated labyrinth of covert
operatives, all of whom converge at similar times and places. They are, as David
Corn writes, "the little faceless gray men we never see and seldom hear
Those we call the "Shadow Government," the "Parallel Government,"
the "Enterprise," the "Octopus," or a half-a-dozen other
names, are carefully hidden behind an endless roster of official titles and
duties, and a plethora of familiar-sounding organizations and institutions.
These same faceless little gray men would pop up in the Oklahoma City bombing
conspiracy like interminable weeds between the cracks of the pavement.
From the Bay of Pigs to Iran-Contra to Oklahoma City, the names, faces, and
players would coalesce for a brief moment in time into an indistinguishable
menagerie of politicos and spooks, terrorists and assassins to commit
their terrible deed, then fade into the seamless world were little distinction
is made between assets and criminals.
Ted Shackley was officially forced to resign from the CIA due to his dealings
with friend and renegade agent Edwin Wilson. Wilson and former CIA employee
Frank Terpil had smuggled two tons of C-4 to Libya, and at the behest of Shackley,
had set up terrorist training camps there utilizing Green Berets led to believe
they were working for the Agency.
The ostensible purpose of this maneuver was to permit the CIA to gather information
on Soviet and Libyan weapons and defense capabilities, and to learn the identities
of foreign nationals being trained for guerrilla warfare.
Upon obtaining their passports and travel plans, Shackley would alert their
home country's secret police, who would then assassinate them upon their return.
While Wilson was sentenced to a long prison term, Terpil fled to Cuba, and
has since been involved in numerous dealings with the PLO and other terrorists,
supplying them with sophisticated assassination weapons, detonators, and communication
Terpil also supplied torture devices to Ugandan Dictator Idi Amin, who used
a bomb supplied by Terpil to assassinate Kenyan cabinet member Bruce McKenzie.*
One month later, Terpil was implicated in the murder of three executives of
the IBEX corporation a high-technology company that was doing business
with the Savak. John Harper, IBEX's former director of security, said that while
in Tripoli, he saw a mock-up of the ambush site at the training facility that
Terpil and Wilson had set up.
Readers will recall this is the same Frank Terpil that was seen by Cary Gagan
in Mexico City with Omar (Sam Khalid?), six months before the Oklahoma City
bombing. "I saw him down in Mexico," recalled Gagan, "in November
of '94, in Mexico City with Omar."
Gagan said he and Omar met Terpil at the Hotel Maria Isabelle in the Zona Rosa
district. Gagan didn't know who Terpil was at the time, but described him as
a fat, balding, 60ish fellow, who was "terribly dressed." In other
words Frank Terpil.
"I heard the name because I knew Wilson's name from the Florence Federal
Penitentiary in Colorado." Gagan said that one of his intelligence contacts,
a man named Daniel, told him about Terpil. "The conversation came up in
reference to the Gander, Newfoundland crash," said Gagan.
Was Terpil in Mexico to supply explosives to Omar? While Gagan wasn't privy
to the conversation, he believes that was the purpose of the meeting.
When Wilson and Terpil were selling arms and explosives to Libya, they were
reporting to none other than Ted Shackley. Kwitny notes that Wilson and Terpil
were hiring anti-Castro Cubans from Shackley's old JM/WAVE program [and Green
Berets] to assassinate President Qaddafi's political opponents abroad:
Some U.S. Army men were literally lured away from the doorway of Fort Bragg,
their North Carolina training post. The GIs were given every reason to believe
that the operation summoning them was being carried out with the full backing
of the CIA. 
Readers will also recall that while Timothy McVeigh was still in the Army,
he wrote his sister a letter telling her that he had been picked for a Special
Forces (Green Beret) Covert Tactical Unit (CTU) that was involved in illegal
activities. These illegal activities included "protecting drug shipments,
eliminating the [Octopus's drug] competition, and population control."
This is exactly what Shackley, Clines, and Secord did in Laos assassinating
and bombing Vang Pao's opium competition out of existence.
Could this CTU McVeigh claims he was recruited for be a latter-day version
of Shackley's assassins? Former federal grand juror Hoppy Heidelberg said McVeigh's
letter indicates that he turned them down, while former FBI SAC Ted Gundersen
claims McVeigh actually worked for the group for a while, then became disenchanted.
If McVeigh had actually been recruited for such a group, the question arises
of what cover-story he was given. As discussed, it is highly likely he was told
that he was on an important mission to infiltrate a terrorist organization
and prevent a bombing. Considering McVeigh's background and character, it is
unlikely he is a terrorist who set out to murder 169 innocent people.
Also recall that McVeigh was seen with Hussain al-Hussaini. The Iraqis would
provide a convincing and plausible excuse if McVeigh was led to believe he was
part of a sting operation: "Son, you were a hero in the Gulf War. Your
country needs you now in the fight against terrorism." It is a story a
young, impressionable man like McVeigh would fall for.
It is also possible that McVeigh was sheep-dipped as disgruntled ex-GI for
infiltration into the neo-Nazi community, which would provide a doorway into
the bombing conspiracy through places like Elohim City.
Or perhaps, as a result of his becoming "disenchanted" and "leaving"
the CTU, he became targeted for "termination," and was set up as a
fall-guy. Such is standard operating procedure for those who attempt to leave
the world of covert operations.
Either way, the fact that there appeared to be two "Timothy McVeighs,"
just as there were two Oswalds, would suggest a sophisticated intelligence operation,
one that was designed to put McVeigh in the wrong place at the wrong time.
Like Oswald, McVeigh probably believed himself to be a government agent, part
of a secret project.
Like Oswald, McVeigh was not told what the plan really involved, and was trapped,
framed, and made a patsy.
This goes a long way towards explaining why an armed McVeigh didn't shoot and
kill Officer Charles Hanger when he was stopped on the Interstate after the
Why would a man who had just killed 169 men, women, and children balk at killing
a cop (a member of the system that McVeigh allegedly hated) on a lonely stretch
of highway? The only possible answer is that McVeigh believed he was part of
a sting operation a government asset and would be protected.
Whatever McVeigh's actual purpose and intent, it is curious, to say the least,
that Ted Shackley would tell D'Ferdinand Carone that the perpetrator of the
bombing was somebody from here.
How did he know?
Roger Moore, the mysterious gun dealer whom the government claimed McVeigh
and Nichols robbed to "finance" the bombing, ran a company next to
Bahia Mar Marina in South Florida (a popular hang-out for the Iran-Contra crowd),
which manufactured high-speed boats. The boats sold through Intercontinental
Industries of Costa Rica (an Ollie North "cut-out") were used
to mine Nicaragua's harbors in "Operation Cordova Harbor."
One source I spoke to said Moore had direct contact with Oliver North. "I
don't know who his [Moore's] contact was on Iran-Contra beyond Don Aranow. I
know he had access and would talk directly to Oliver North. He knew Felix Rodriquez
pretty well, he knew Nester Sanchez, Manny Diaz, all those guys around Jeb [Bush]
This source also claimed that Moore was a "paymaster" for Tom Posey's
Civilian Military Assistance (CMA) the covert paramilitary operation
that served as the primary nexus for arming the Contras.
A retired CIA/DIA agent I spoke to in Arkansas, said "[Moore] was an Agency
Other sources say Moore was an informant for the FBI. He allegedly tried to
sell heavy weapons to the Militia of Montana (MOM) as part of an FBI sting operation.
A call to MOM indicated that Moore had indeed stopped by for a friendly chat.
He told Randy Trochmann, one of MOM's leaders, that he was traveling the country
meeting with militia groups in an attempt to verify black helicopter sightings
and rumors of UN troop movements. This seems a peculiar pastime for a man who
worked for a network of spooks devoted to bypassing and subverting the Constitution.*
What is also peculiar is a letter written by Moore to McVeigh in early 1995.
Introduced at the trial of Terry Nichols, the letter, speaks of "a plan
to bring the country down and have a few more things happen."
Robert "Bud" McFarlane went on to form his own consulting firm, and
joined the board of American Equity Investors (AEI), founded by Prescott Bush.
AEI's board of directors reads like a Who's Who of the spook world, including
former CIA officials George Clairmont and Howard Hebert, and CIA lawyer Mitch
Rogovin, who was George Bush's legal counsel when he was Director of the Agency.
AEI invested in a Tulsa, Oklahoma company: Hawkins Oil and Gas, from 1988 to
1991. McFarlane was a "consultant" for Hawkins and several other companies
on the Ech power project in Pakistan, which required frequent trips to that
This was during the tail end of the largest covert operation the U.S. ever
conducted the arming of the Mujahadeen, who trained in Pakistan. McFarlane
sat on the "208 Committee," who's job it was to procure weapons for
the Mujahadeen, and arms contracts for the Pakistani government.
Recall that Richard Armitage, who was the contact for Fazoe Haq, governor of
the Northwest Frontier Province, also sat on the "208 Committee."
As Alfred A. McCoy writes in The Politics of Heroin in Southeast Asia:
It's known that the CIA paid the Afghan guerrillas, who were based in Pakistan,
through BCCI. That the Pakistan military were in fact banking their drug
profits, moving their drug profits from the consuming country back to Pakistan
though BCCI. In fact the boom in the Pakistan drug trade was financed by BCCI.
BCCI also served as a conduit for the Iran-Contra operation, largely through
Gaith Pharon, former head of Saudi Intelligence, who operated out of Islamabad,
The Saudis played a major role in funding the Mujahadeen and [via the request
of Secord and McFarlane] the Contras.
McFarlane who former Mossad official Ari Ben Menashe claims is a Mossad
asset worked with the president of Hawkins' International Division, Mujeeb
Rehman Cheema, on the Ech project.
Was Hani Kamal's supposed statement that Khalid was connected to the Mossad
accurate? A prominent Muslim community leader, Cheema claims he does not know
Interestingly, Gagan said that at one point, Terry Nichols rendezvoused with
his Middle Eastern friends at the Islamic society of Nevada. Cheema is chairman
of the Islamic Society of Tulsa. Is there a connection? And what of Cheema's
links to McFarlane? Was McFarlane using Hawkins as a front for CIA activities
It is perhaps prophetic that many of the terrorists implicated in the major
bombings of the last decade attended the terrorist conference held in the Northwest
Frontier Province town of Konli, Pakistan in July of 1996.
As noted, Osama bin Ladin, a Saudi who funded the Mujahadeen and was implicated
in the Riyadh and Dhahran bombings, (a close associate of Sheik Abdel Omar Rahman,
implicated in the World Trade Center bombing), Ahmed Jibril (who bombed Pan
Am 103), and senior representatives of Iranian and Pakistani intelligence, and
Hamas, HizbAllah, and other groups attended the conference.
Stephen Jones claimed he had learned through the Saudi Arabian Intelligence
Service that Iraq had hired seven Pakistani mercenaries Mujahadeen veterans
to bomb targets in the U.S., one of which was the Alfred P. Murrah Building.
Just who were these "Pakistani mercenaries," and were they really
working for Iraq?
1118. (*) General John Singlaub, a former OSS agent, has the distinction of
being the first U.S. officer to pay his indigenous personnel at Kinming, China
with five pound bags of opium. Ray Cline (Iran-Contra) was a member of Singlaub's
team at the time. (Wall Street Journal, 4/18/80)
1119. (*) After the Contra torture manual scandal, McFarlane was fired, then
kicked upstairs to the NSC to become Armitage's Deputy. Among those who participated
in the original to plan "privatize" the Contra operation were: Gen.
John Singlaub (Ret.), Andrew Messing, then of the Conservative Caucus, Ted Shackley,
Harry (Heinie) Aderholt, Edward Luttwak, Gen. Edward Lansdale (Ret.), Seal Doss,
and Col. John Waghelstein, former head of the U.S. military groups in El Salvador.
1120. (824) Andrew Eiva, former Green Beret, part of lobby effort for Mujahadeen,
interview with author; Christic, Op Cit. Reagan's March, 1981 decision was formalized
in November as National Security Decision Directive 17, and hidden from Congress.
1121. (825) Levine, Op Cit.
1122. (826) Roberts, Op Cit.
1123. (827) Bo Gritz, Called to Serve, 1991.
1124. (*) The real reason that Britain went to war against the Chinese (The
Boxer Rebellion) was to prevent the emperor of China concerned about
the spread of drug use among his people from destroying China's opium
crop. The British, who were making huge profits from the opium trade, had Parliament
declare war against the Chinese for interfering with their profitable "commerce."
One of the spoils of that war was that Hong Kong became British territory, resulting
in a port controlled by England for the transshipment of drugs.
1125. (828) Speech given to the Arizona Breakfast Club in Phoenix in 1989,
quoted in Craig Roberts, The Medussa File: Crimes and Cover-Ups of the U.S.
Government (Tulsa, OK: Consolidated Press, 1996), p. 200.
1126. (829) Jack Colhoun, "The Family That Preys Together," Covert
Action Quarterly, date unknown. President Bush later appointed former Florida
Governor Bob Martinez as head of the U.S. Office of National Drug Control Policy.
Martinez had accepted campaign donations from drug trafficker Leonel Martinez
(no relation). Bush's son Jeb also had links with the Contra drug supply line
through Leonel Martinez; In November 1984, two years after Reagan announced
his "bold, confident plan" promising to "be on the tail"
of drug traffickers, cocaine imports had jumped 50 percent and heroin was more
plentiful than at any other time since the late 1970s. An estimated 63 tons
of cocaine glutted the U.S. market in 1984. (James Mills, The Underground Empire,
1127. (830) Dennis Bernstein and Robert Knight, "DEA Agent's Decade Long
Battle To Expose CIA-Contra-Crack Story," Pacific News Service, 10/96;
"Will Whitewash Of CIA-Cocaine Connection Continue? Revelations Of CIA's
Connection To Crack Shouldn't Come As A Surprise," The Birmingham News,
9/29/96. "Richard Gregorie, one of the country's top narcotics prosecutors
in Miami had aggressively pursued big-time cocaine bosses and drug-corrupted
officials in and out of the United States. But as he began going up the drug-business
chain of command, he targeted foreign officials friendly with the U.S. government,
and the State Department started interfering with his investigations, telling
him to stay away from certain sensitive areas. Gregorie's operations were subsequently
stopped at the request of the State Department and he quit in protest."
-Project Censored, 1989. NSC memos discovered during the Iran-Contra investigation
revealed that Bush's NSC advisor Donald Gregg was aware early on of Contra involvement
in the drug trade. Could ex-CIA chief George Bush, at that point Vice President
and Drug Czar, be unaware of such goings-on when his reporting subordinate was
quite aware of Contra involvement in the drug trade?
1128. (831) Celerino Castillo III and Dave Harmon, Powderburns: Cocaine, Contras
and the Drug War (Oakville, Ontario: Mosaic Press), 1988. As ex-CIA field officer
John Stockwell noted: "We cannot forget the Senate Kerry Committee findings
of cocaine smuggling on CIA/Contra aircraft, the DEA reports on the number of
prosecutions in which the CIA has intervened to block prosecution of drug smugglers,
the note that escaped Lt. Col. Oliver North's shredder that $14 million of drug
money had gone to the Contras, or the CIA's 20-odd year relationship with Manuel
Noriega."( (Austin American-Statesman, op-ed editorial)
1129. (832) Mike Levine, interview with author.
1130. (*) Shackley's main contact was Richard Armitage.
1131. (*) Edward G. Lansdale, working with Shackley, headed a subset of JM/WAVE
called "Operation Moongoose." The assassination team was called "Operation
40." Shackley's later partners in the "Enterprise," Tom Clines
and Edwin P. Wilson, also worked on JM/WAVE and Operation 40. Roselli and Giancana
were murdered only days before they were to testify before Congress regarding
their alleged roles in the Kennedy assassination.
1132. (*) Shackley and Clines also directed an assassination program to eliminate
Vang Pao's heroin competition. A CIA officer addressing a group of Green Berets
in Vietnam claimed that Shackley had been responsible for 250 political murders
in Laos. Shackley would later become CIA Station Chief of Saigon.
1133. (833) Wall Street Journal, March, 1983; quoted in Cockburn, p. 103. Michael
Jon Hand was a U.S. Green Beret who served under Shackley in Laos.
1134. (**) In fact, Nugan Hand rented adjoining offices with the DEA in its
Chiang Mai, Thailand branch, even sharing the same secretary! The overall operation
resulted in the huge heroin epidemic that swept the country in the late 1960s
and '70s, not to mention the U.S. troops in Vietnam who became addicts.
1135. (834) Although Congress declared Phoenix unlawful in 1971, and ordered
the military to prosecute the guilty parties, the assassinations continued until
1975. One operative a Mr. Reaux was ultimately arrested and hung
out to dry.
1136. (*) As Marchetti stated regarding William Colby, "Colby is a very
dangerous man. I think he's got the mentality of a Heinrich Himmler. He would
have made and might still from the way he's going a very good
Communist. I mean that he's the kind of guy who is best qualified to run a concentration
camp, not an agency like the CIA."
1137. (835) Michael Parenti, Inventing Reality: The Politics of the Mass Media
(New York, NY: St. Martin's Press, 1986), p. 178. Also responsible for the squelching
of trade unions in Chile was the American Institute for Free Labor Development
(AIFLD), a CIA front, supported by corporations like W.R. Grace and ITT.
1138. (*) Col. H. Norman Schwarzkopf, Sr., the father of 'Stormin' Norman Schwarzkopf,
was an intelligence operative in Iran in the 1940s and 50s, and helped set up
the dreaded Savak.
1139. (*) It is rumored that he was looking forward to inheriting the Italian
Fascist P2 account.
1140. (**) It is interesting to note that Bush had been implicated in "October
Surprise," the backdoor deal with Iranian terrorists to hold the 66 American
hostages seized by pro-Khomeini forces until after Carter's defeat. It is therefore
not surprising that Shackley and Bush both groomed for CIA directorships,
but forced to resign would work together on covert and illegal deals
such as October Surprise and Iran-Contra.
1141. (836) Weiner, Op Cit.
1142. (837) Gene Wheaton, interview with author.
1143. (*) Victor Marchetti aptly summed up this philosophy by examining former
Secretary of State Henry Kissinger: "He's power-mad, a manipulator of events.
I don't think he does it for any ideological reason, just out of instinct. I
don't think he understands what this country is all about. To him, everything
is a deal "
1144. (*) As Al Martin, an Iran-Contra player, said, "Oklahoma City begins
with Iran-Contra. If you want to understand Oklahoma, start with Iran-Contra."
1145. (838) Affidavit of Colonel Edward P. Cutolo, commander of the 10th Special
Forces Group (Airborne), 1st Special Forces, 3/11/80, copy in author's possession.
1146. (839) Maas, p. 286. The C-4 came from J.S. Brower & Associates.
1147. (**) On July 3, 1976, Israeli commandos raided the Ugandan airport at
Entebbe after one of their airliners had been hijacked by the PLO. McKenzie
was instrumental in helping the Israelis, who had used Kenya as a staging area.
In his book, Manhunt, Peter Maas describes what McKenzie got for his efforts:
"Although he had been counseled not to, McKenzie went to Uganda as part
of a Kenya trade mission to patch up relations with Idi Amin. The warnings seemed
unnecessary. Amin himself was on hand to bid McKenzie good-bye, presenting him
with the traditional Ugandan friendship gift, an African Antelope's head. Soon
after McKenzie's plane took off, it blew up. Inside the Antelope head was a
bomb, placed there by Frank Terpil."
1148. ( Gene Wheaton, IBEX;s subsequent director of security who investigated
the murders, claims Shackley, Clines, Hakim, Rafael "Chi Chi" Quintero,
and Secord are all linked to the murders. John Harper would later show up in
Honduras training the Contras in the use of explosives.
1149. (840) Kwitny, Op Cit., p. 103.
1150. (841) Hoppy Heidelberg and Ted Gundersen, interviews with author. Recall
that Heidelberg heard McVeigh's sister Jennifer read the letter into testimony.
1151. (*) Dewy Clarridge and Oliver North were in charge of the harbor mining
operation. Moore's friend Don Aranow, owner of Magnum Marina, which had the
original contract to build the boats, gave the contract to Moore. Aranow was
killed one day before he was to testify at the Iran-Contra hearings.
1152. (**) My source told me that Moore's FBI contact was Tom Ross out of Hot
Springs, Arkansas, one of Ollie North's "damage control" men. "
1153. (842) Nolan Clay, "Robbery Victim's Alliances Promise Drama in Nichols'
Trial," Daily Oklahoman, 11/9/97.
1154. (843) AEI articles of incorporation. The president of AEI, Harry Huge,
was a partner in the law firm of Rogovin, Huge, and Schiller.
1155. (844) Cliff Lewis, interview with author. Mujeeb Cheema, interview with
1156. (*) Interestingly, some of Khalid's workers were spotted in a Tulsa nightclub,
The Ocean Club, which is curious, since Tulsa is 100 miles from Oklahoma City.
McFarlane would not return repeated calls.
1157. (845) Indeed, a major terrorism summit sponsored by Tehran in June of
1996 saw delegates from Afghanistan, Pakistan, Iraq, Saudi Arabia, and other
Mid-East and African states, as well as Bosnia-Herzegovina, Germany, France,
Britain, Canada, and the U.S. come together to form a joint working committee
under the command of the new HizbAllah International transforming that
group into "the vanguard of the revolution" of the Muslim world.
1158. (846) Timothy McVeigh's Petition for Writ of Mandamus, 3/25/97, p. 81.
Jones points out, given the issue of the credibility of the information, that
the head of Saudi Intelligence is the King's own son.
1159. (*) As former high-ranking CIA official Victor Marchetti explained, "They're
smart enough always to work through other parties. Generally, the dirtier the
work is, the more likely it is to be farmed out."
1160. (**) Some of the members of ZR/RIFLE, such as Felix Rodriguez (AKA: Max
Gomez), and the leader of CORU, Frank Castro, would go on to form the nucleus
of the Contra drugs-for-guns operation.