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DOPE STORY
Document Type:
CREST
Collection:
General CIA Records
Document Number (FOIA) /ESDN (CREST):
CIA-RDP90-00965R000403630001-8
Release Decision:
RIPPUB
Original Classification:
K
Document Page Count:
3
Document Creation Date:
December 22, 2016
Document Release Date:
February 9, 2012
Sequence Number:
1
Case Number:
Publication Date:
April 22, 1987
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OPEN SOURCE
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PDF icon CIA-RDP90-00965R000403630001-8.pdf 319.32 KB
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STAT r Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000403630001-8 ARTICLE APPEARED 22 April 1987 ON PA~ /.-r= Dope Story Doubts Rise on Report Reagan Cited in Tying Sandinistas to Cocaine Little Evidence Backs Tale, Which Came From Pilot Who Claimed CIA Link Deal for a Lighter Sentence T By JONATHAN KwiTNY Staff Reporter of THE WALL STREET JOURNAL In the early-morning darkness of June -P 26, 1984, Adler Barriman al a wealthy, convicted drug smuggler working as a fed- eral informant in hopes of leniency, landed his C-123 cargo plane at Homestead Air Force Base near Miami. On board was 1,500 pounds of cocaine he said he had brought from Nicaragua. Within a few weeks, unnamed "admin- istration officials," citing information pro- vided by Mr. Seal, leaked to the press sto- ries saying that top Nicaraguan leaders, including a brother of President Daniel Or- tega, were trafficking in cocaine with the help of Soviets and Cubans. The Reagan administration has used the Seal story-which Nicaragua denies- ever since in attempts to rouse congres- sional and public support for aid to the Contra rebels fighting to overthrow Mr. Ortega's Sandinista government. On March 16 of last year, in an appeal for a Contra aid package, President Reagan dis- played on national television a photo taken by a camera hidden in Mr. Seal's plane. "I know that every American parent concerned about the drug problem will be outraged to learn that top Nicaraguan gov- ernment officials are deeply involved in drug trafficking," Mr. Reagan said. "This picture, secretly taken at a military air- field outside Managua, shows Federico Vaughan, a top aide to one of the nine commandants who rule Nicaragua, load- ing an aircraft with illegal narcotics bound for the United States." Some Problems But Mr. Seal's evidence of Nicaraguan drug trafficking doesn't appear to be as sweeping as he or the Reagan administra- tion portrayed it. The Drug Enforcement Administration says the cocaine on Mr. Seal's C-123 is the only drug shipment by way of Nicaragua that it knows of-and Mr. Seal said he had brought it there to begin with. The Nicara- gling dope. He said he made $610,000 or guan "military airfield" that officials said $700,000 while working for the DEA in the Mr. Seal flew from is in fact a civjliaq field., Nicaraguan case, which the government h fl n used c ie y for crop-dusti g flights, the says it let him keep to cover expenses. S tate Department now concedes. That con- cession undermines the basis for linking Defense Minister Humberto Ortega, Presi- dent Ortega's brother, to the operation. In fact, the man who supervised Mr. Seal's work for the government-Richard Gregorie, chief assistant U.S. attorney in Miami-says he could find no information beyond Mr. Seal's word tying any Nicara- guan official to the drug shipment. As for Federico Vaughan, the man Mr. Reagan called an aide to a Sandinista comman- dant, federal prosecutors and drug offi- cials now say they aren't sure who he is. Asked about the matter, a White House spokesman says, "We got the information from DEA and have received no indication from them of any change in their original assessment." Contra Supply Network Meanwhile, some DEA officials com- plain that the administration's use of Mr. Seal's story against the Sandinistas sabo- taged a much bigger drug case, against Colombians. Now there are allegations that besides drugs, Mr. Seal may have been involved with other sensitive cargo. Four drug pi- lots in prison in Florida say they knew Mr. Seal as part of a network that deliv- ered weapons to airfields in Central Amer- ica for the American-backed Contras and then sometimes flew back to the U.S. with cocaine. Over the years, Mr. Seal told as- sociates and testified in court that he sometimes did work for Central Intelli- gence Agency operations. Though the Jus- tice Department was quick to follow up Mr. Seal's Nicaraguan story with an indict- ment, it rejected allegations from the pi- lots and others of drug dealing by Con- tras. The Seal case is a complex double helix of politics and law enforcement. Mr. Seal provided his story about Nicaragua after contacting Vice President George Bush's anti-drug task force and offering to be an informant. He gave the administration the photographs and testimony it used to ac- cuse Nicaraguan leaders of drug traffick- ing. In return, federal prosecutors helped him wriggle out of a long prison term he faced on three drug convictions. He got six months' probation. Fleet of Planes Doubts about portions of his story first were raised last year in the Village Voice and Columbia Journalism Review by Joel Millman, who helped locate sources for this broader investigation of the case. It is clear Mr. Seal was a major drug runner. He had a fleet of at least four planes, and he testified in federal court that he earned more than $50 million smug, The money did him little good. On Feb. 19, 1986, as Mr. Seal was getting out of his white Cadillac at a Louisiana shelter where his probation required him to spend nights, a squad of hit men gunned him down. When Mr. Seal first faced various drug charges several years ago, he initially got nowhere in seeking a deal. He twice went to Justice Department and DEA officials in Florida seeking a milder sentence in ex- change for doing undercover work to catch big Colombian drug-cartel leaders, and he made the same offer in another federal drug case in Louisiana. The prosecutors all decided they preferred to have Mr. Seal in jail. So in March of 1984 he called Mr. Bush's drug task force, got an appointment and flew his Learjet to Washington, he ex- plained later in testimony at drug trials of others in federal court in Miami and Las Vegas. Two task-force staffers say they met Mr. Seal on a Washington street and escorted him to a meeting with Kenneth R. Kennedy, a veteran DEA agent. The Justice Department says that he was accepted as an informant to trap Co- lombian dealers and that everyone was surprised to learn later of a Nicaraguan connection. But Mr. Kennedy recalls Mr. Seal's saying at their first meeting that "the officials of the Nicaraguan govern- ment are involved in smuggling cocaine into the United States, specifically the San- dinistas; that he would go through Nicara- gua and get loads and bring them back; that he had brought loads of cocaine [through Nicaragual In the past and he could continue to do it." Thomas Sclafani, who was just becom- ing Mr. Seal's lawyer In Miami at the time, says that he is "absolutely" sure that nailing Nicaraguans was "a key Ingredi- ent" in the deal Mr. Seal offered the gov- ernment. Getting Started Mr. Kennedy sent Mr. Seal to agents Robert Joura and Ernest Jacobsen in the DEA's Miami office. They authorized him to go to Colombia and Panama to arrange a drug shipment, but they say it was a to- tal surprise when he returned with news ..that cocaine-cartel leaders were moving their operations to Nicaragua because of 'law-enforcement pressure in Colombia. 'Mr. Seal testified that the cocaine leaders explained to him, "We are not commu- nists. We don't particularly enjoy the same philosophy politically that they do. But they serve our means and we serve tl4eirs." Continued Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000403630001-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000403630001-8 Mr. Gregorie, the federal prosecutor in Miami, says the politics of it made no dif- ference to him, either. "Nobody cared." he says. Nicaragua "was just another place they I the cocaine cartel l did business." As Mr. Seal related the story in his tes- timony, it was in Panama in mid-May 1984 that the Colombians introduced Mr. Vaughan to him as "some sort of a govern- ment official from Nicaragua." He said Mr. Vaughan claimed to be a top aide to Tomas Borge, the Sandinista interior min- ister and security-police chief. Mr. Seal testified that Mr. Vaughan took him, and a co-pilot to Nicaragua on an airliner, dodging customs at the airport, and that they stayed at Mr. Vaughan's house overnight. Then, he said, a Nicara- guan military driver gave them a tour of an airfield and Mr. Vaughan pointed out antiaircraft batteries they should avoid, before putting them on a flight to Panama. As evidence of the trip, he offered his boarding pass on an airliner to Managua and a receipt for payment of the Managua airport tax; neither document appears to bear any date or name identification. On his first scheduled drug run after be- coming an informant, Mr. Seal testified, his plane skidded off a muddy Colombian airstrip and crashed as he was taking off. He said the accident forced the cocaine shipment onto a smaller plane that needed to refuel to reach the U.S.; the refueling stop was in Nicaragua, he said, and Mr. Vaughan met the flight. As he related it, after taking off again, his plane was hit with antiaircraft fire and limped into the main Managua airport, where he and his co-pilot were held by military officers. Eventually, Mr. Seal testified, Mr. Vaughan's military driver brought a truck to the Managua airport, transferred the co- caine off the plane and drove it away. He said he was jailed overnight, then picked up by Mr. Vaughan and given a small plane to fly home to the U.S., leaving the cocaine in Nicaragua. He said this plane was owned by Pablo Escobar, who the DEA says is a major partner in Colombia's largest cocaine syndicate. Secret Camera On the night of June 24, 1984, Mr. Seal continued, he, a co-pilot and a mechanic headed back to Managua to get the coke, flying his newly acquired C-123 cargo craft. Hidden within it was a secret cam- era, installed by the Central Intelligence Agency at Rickenbacker Air Force Base in Ohio. Although the camera didn't work right, he said, he managed to squeeze off dozens of grainy, shadowy photographs. Most of them show a few men in casual attire lounging against a grassy back- ground. Mr. Seal identified one as Mr. Vaughan, one as Mr. Escobar, the Colom- bian drug kingpin, and a third as another Colombian drug dealer. Several pictures show men, whom U.S. officials called sol- diers, carrying canvas bags. After this trip the DEA sent Mr. Seal back down to Nicaragua with $1 million, and he said he arranged with Mr. Vaughan for another cocaine shipment. But in mid- July of 1984, DEA agent Joura remembers getting a call from his agency in Washing- ton saying that a story based on Mr. Seal's C-123 trip would shortly appear in the Washington Times. Chances of using Mr. Seal to catch members of the Colombian drug cartel vanished. "At that time, there was a Con- tra funding bill that was up for approval, and I guess that precipitated the leak of the photographs," says Mr. Joura. "It ru- ined the case. We hoped to go a lot further with it." Mr. Joura did have time to tell Mr. Seal to round up some Florida distributors and another pilot for a meeting so they could be arrested. (It was at the 1985 Miami trial of these men that Mr. Seal, as a govern- ment witness, related his Nicaraguan story. He repeated it at another federal drug trial that year, in Las Vegas.) Los Brasiles The Washington Times story, which touched off many other press accounts, quoted "U.S. sources" as saying that "a number of highly placed Nicaraguan gov- ernment officials actively participated in the drug smuggling operation," naming In- terior Minister Borge and Defense Minister Humberto Ortega. U.S. officials have said that the defense minister could be impli- cated because the drug shipment used a military airfield, Los Brasiles. But the State Department now confirms reports from Nicaragua that Los Brasiles is a civilian airfield used mainly for agri- cultural flights. It is also listed as a civil, ian field in a Defense Department Flight Information Publication. The Justice Department said in 1984 that cocaine-processing labs had been es- tablished in Nicaragua and that the drug was being shipped in "multi-ton" amounts. Within a month after the story of the flight broke in the press, Mr. Vaughan was in- dicted. The department says it knows that Mr. Seal's C-123 went to Nicaragua because a device aboard the plane enabled satellites to track It. But Mr. Gregorie, the federal prosecutor in Miami, and the DEA's Mr. Joura:concede that their only evidence of who Mr. Vaughan is comes from Mr. Seal and a tape of a call to a, man Mr. Seal identified as him. The Nicaraguan govern- ment says that a Federico Vaughan worked in 1982 and 1983 as the deputy man- ager of an export-import company run by the Sandinista government but had left be- fore the Seal flight and was never an aide to a commandant. Mr. Vaughan hasn't been put on trial. Though the U.S. has an extradition treaty with Nicaragua, the federal prosecutors never tried to extradite Mr. Vaughan. Mr. 'A I Gregorie says the State Department told him it would be futile. While the account of Sandinista drug in- volvement brought swift Justice Depart- ment action, U.S. officials have rejected accusations of major drug trafficking by the Contras. The handling of those accusa- tions now is being reviewed by two con- gressional committees and the independent counsel for the Iran-Contra affair. "There have been allegations that the laws have not been evenly and appropri- ately carried out, so we're looking into that," says Hayden Gregory, an investiga- tor for a' House Judiciary Committee sub- committee. Former TWA Not The imprisoned drug pilots say Mr. Seal was involved in flights that brought weapons to Central American airfields for the Contras and sometimes returned to the U.S. with drugs. The pilots claim that their Contra weapons deliveries were directed by the CIA. The people they say they worked with are known to have been su- pervised or monitored by the CIA and by Lt. Col. Oliver North, the National Security Council staffer fired for his role in the pro- gram to sell arms to Iran and fund the Contras. As is its practice, the Central In- telligence Agency refuses to comment. Mr. Seal once was a pilot with Trans World Airlines, but he lost the job in 1972 after being charged with smuggling explo- sives to Mexico. The explosives, he later testified in federal court in Las Vegas, were for CIA-trained rsonnel trying to. overthrow C a6'ss Fidel Castro. An appeals court threw out the indictment. Fred Hampton, whose Mena. Ark., firm does a global business repairing aircraft, says Mr. Seal used to talk in 1982 and 1983 about working for the CIA. He says Mr. Seal was secretive about it but discussed aerial reconnaissance of Nicaraguan air bases when the subject came up. Jack Terrell. a former Contra merce- nary who now opposes U.S. intervention in Nicaragua, says that "we knew he (Mr. Seal] was flying for the Contras" at Agua- cote, a Honduran supply base. And a jailed drug pilot named Gary Betzner says he once ran into Mr. a at opango air base in El Salvador, where much of the Contra weaponry was transshipped. Another imprisoned drug pilot, Michael Tolliver. says he was recruited toot the Contra supply network by Mr. Seal, whom he had known since they were both airplane enthusiasts in Louisiana. He says Mr. Seal called him in the spring of 1985 and said, "I've got some interesting flying for you to do." Says Mr. Tolliver: "I fi- gured it was government because every- body knew he was working for the govern- ment." Gotnued, Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000403630001-8 Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000403630001-8 J, Gumed Down Following Mr. Seal's drug convictions, his undercover efforts served him well with sentencing judges. In federal court in Fort Lauderdale, Judge Norman C. Roettger reduced a 10-year drug sentence to six months' probation after DEA agents spoke to him. The judge specifically praised Mr. Seal's cooperation in the Nica- raguan case. Then, under a deal worked out with the Justice Department, Mr. Seal also got probation for another Florida drug conviction and for drug charges in Louisi- ana. But the judge in the Louisiana case, up- set at the leniency of the Justice Depart- ment terms, required Mr. Seal to spend nights during his probation at a Salvation Army shelter in Baton Rouge. The require- ment made him easy for his enemies to find, and one day early last year some of them did. Three Colombian men have been charged with killing him. Of the two others Mr. Seal said went to Nicaragua on the C-123, one, co-pilot Emile Camp, died in a crash of his one-man plane. The other, mechanic Peter Everson, who has never been charged or asked to testify, won't discuss Mr. Seal's story ex- cept to say he would corroborate it if called. He lives in a fortresslike building in Louisiana. One final footnote: Mr. Seal's C-123, af- ter a change in ownership, crashed in Nic- aragua last October while on a Contra sup- ply run. The Nicaraguans captured an American cargo handler who survived. His name was Eugene Hasenfus and his cap- ture began the unraveling o secret U.S. ef- forts to supply the Contras. Declassified in Part - Sanitized Copy Approved for Release 2012/02/09: CIA-RDP90-00965R000403630001-8
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Well you're playing with your new set of boobs through jesus's AI for the God damn love sitting in f****** jail they're laughing at you!
The ginormous oxy-f****** retard moron right here covert CIA actions my ass!
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Search formSearch Query for FOIA ERR:
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GOING TO FAR
Document Type:
CREST
Collection:
STARGATE
Document Number (FOIA) /ESDN (CREST):
CIA-RDP96-00789R003501040009-0
Release Decision:
RIFPUB
Original Classification:
U
Document Page Count:
4
Document Creation Date:
November 4, 2016
Document Release Date:
May 12, 2000
Sequence Number:
9
Case Number:
Publication Date:
September 4, 1989
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NSPR
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Going Too, Far The drug thugs trigger a backlash in Colombia and Kennebunkport T ry to imagine drug gangsters murdering both Attorney Gener- al Dick Thornburgh and his s pre- decessor, Edwin Meese. Next, pretend that drug triggermen and guerril- la allies rub out almost half the Supreme Court-say. Justices William Brennan, Byron White, Antonin Scalia and Sandra Day O'Connor-along with hundreds of lower-ranking but still prominent jurists. Expand the list of victims to include Washington Post editor Ben Bradlee and Los Angeles police chief Daryl Gates, both slain, and Amy Carter, kidnaped and held briefly as a warning to authori- ties who might get tough with the narco- barons. And then the grand climax: the 1987 assassination of George Bush, mur- dered at a campaign rally just as he had become the favorite to be elected Presi- dent the following year. In the U.S. such carnage and terror striking at the vitals of effective government would be simply unbe- lievable. Yet an almost precisely equivalent list of crimes has been committed in Colombia over the past nine years. Since 1980, assassins have gunned down 178 judges; elev- en of the 24 members of the Su- preme Court died in a 1986 shoot- out between the army and leftist guerrillas thought to have been paid by the drug barons. Also hit were two successive Justice Ministers lone survived), an Attorney General. the police chief of the nation's second largest city, Medellin, and the editor of the news- paper Ei Especrador in the capital city of Bogota. The drug lords also kidnaped the 33-year-old son ofa former President. Then, two weeks ago, a drug hit team pumped five bullets into Luis Carlos Galan. A Senator and protege of incum- bent President Virgilio Barco Vargas. Galan was the clear front runner to win the presidency in next May's elections. But by killing him the narrotrafrcantes may have finally gone too far, Instead of further intimidating the government, the murder of Galan helped intensify a crack- down that by last week had escalated to what a drug lords' communique called i Even before the U.S. announced its "absolute and total war." infusion of emergency assistance, Colom- that followed presented the spectacle of a country fighting for its life against crimi- nal combines financed by America's drug habit. The violence spurred the Adminis- tration to jump-start its antidrug pro- gram, scheduled to be unveiled next week in George Bush's first major TV address to the nation. From his vacation home in Kennebunkport, Me., the President an- nounced a $65 million package of emer- gency military aid to Colombia, more than 2h times the $25 million the nation had been scheduled to receive. At the same time, the State Department warned that "Americans traveling to Colombia could expose themselves to extraordinary personal danger." Spokesman Richard Boucher said that State "strongly urges Americans to avoid visiting Medellin, headquarters of the drug traffickers' boa's government had scored some early victories, confiscating in raids hundreds of millions of dollars' worth of drug king- pins' property. Included were 143 fixed- wing planes and helicopters believed to be "We declare absolute and total war on the government... and all those who have prosecuted and attacked us." pA--prover--ForReleas2 Drug violence strikes down the high and the lour, presidential candidate Luis Carlos Galan, mourned by thousands, left, and an unidentified corpse burped by a Medellin roadside used to smuggle drugs to the U.S., a num- ber of yachts, and the mansions and ranches of the most prominent lords of the Medellin cartel: Pablo Escobar Ga- viria and Jose Gonzalo Rodriguez Gacha. Colombian television showed viewers some indications of the drug lords' ob- scenely lavish life-styles. One of Rodri- guez Gacha's spreads north of Bogota boasts several swimming pools, an artifi- cial lake and a two-acre flower garden. Another Rodriguez Gacha mansion, in- side Bogota, features a crystal staircase set amid pink marble walls and bathrooms equipped with gold-plated fixtures and rolls of Italian toilet paper on which were printed copies of classic artworks. Esco- bar's prize possession, a 1.000-acre ranch known as El Napoles. even had a private zoo stocked with giraffes, dwarf ele- phants, rhinoceroses and some 2,000 oth- er exotic animals, many imported illegal- ly from Africa. President Barco decreed that the drug lords can get their property back only if they claim it in person and prove it was acquired with profits from le- gitimate business, not drugs. Most important, Barco proclaimed a state of siege that will allow him to extra- dite to the U.S. any of the 80 drug thugs indicted by American prosecutors with- out getting a judge's signature on the or- der. That end-runs one of the biggest bar- riers to punishment of the gangsters: an intimidated Colombian Supreme Court in 1987 declared a U.S.-Colombia extradi- tion treaty invalid on the flimsiest of tech- nicalities. Both Washington and Bogota officials declare that the drug lords fear extradition more than anything else be- cause they cannot terrorize judges and ju- ries in the U.S. as readily as they can those in Colombia. The gangsters agree. Their communiques have been issued in the name ofa group that calls itself, with defi- ant sarcasm, the Extraditables. It has adopted the slogan "Better a Tomb in Co- lombia Than a Jail Cell in the U.S." "We will not be cowed. We shall prevail over the forces that would destroy our democracy and enslave our nation." Though Colombian police initially rounded up and arrested 11.000 people- many many of whom were quickly released- by Friday they had nabbed only six peo- ple on the U.S Justice Department's 120- name "long list" of those wanted for ques- tioning, and not one of the suspects on a most-wanted list of twelve supplied to the Bogota government. The biggest catch: Eduardo Martinez Romero, believed to be a financial adviser to the Medellin cartel. He is one of several people indicted in the U.S. for involvement in an alleged $1.2 billion money-laundering scheme, in which drug money was passed off as the supposed profits of jewelry and gold- trading businesses. Martinez is described as only a middle-size fish. but he could turn out to be highly important. If he is extradited and decides to talk in return for a light sentence, he m. ght point out where his chiefs have hidden billions of dollars in profits and investments. The U.S. and friendly nations could then seize those assets. At week's end U.S. authorities. long out of practice in extradition cases involving Colombia, were rac- ing against a Monday deadline to complete a small mountain of paper- work needed for Martinez's extradi- tion. If they could not meet that dead- line, Martinez would have to be turned loose. Since he had not been -Colombia President Virgilio Barcos Vargas charged with any crime in Colombia, he could be held only seven days after his arrest, even during a state of siege. Wanted in America: Colombia 's biggest narcobarons The Dirty Dozen Pablo Escobar Gavirla, 39: Leader of the Medellin cartel, which dominates the world cocaine trade. Escobar, who has a fortune estimated at more than $2 billion, is under indictment in Miami, Los Angeles and Atlanta. Gilberto Jose Rodriguez Orejuela, 45: Head of the Cali cartel. Owned a soccer team in Medellin and the First Interamericas Bank in Panama. Under indictment in New York, Los Angeles, New Orleans and Miami. Jorge Luis Ochoa Vasquez, 40 Juan David Ochoa Vasquez, 41: Jorge's elder brother, he helps manage the business. Fablo Ochoa Vasquez, 32: The youngest Ochoa son, "Fabito" helps supervise the family business. se 2000/08/09 : CIA-RDP96-00789R003501040009-0 Jose Gonzalo Rodriguez Gacha, 42: The most vicious of the Medellin kingpins, dubbed "El Mexicano." Gustavo de Jests Gavirla Rivero, 42: Escobar's cousin and right-hand man. Under indictment in Atlanta. Chief executive officer of the - . family cocaine business, he is Pablo Escobar's peer in wealth, political influence and legal invincibility, Under indictment in Miami and Atlanta. Miguel Angel Rodriguez Orejuela, 46: Brother of Gilberto. Co-owner of the soccer team and a chain of drugstores and big businesses in Medellin. Under indictment in New Orleans. Jaime RaUl Orejuela Caballero, 46: Indicted in New York in 1985 for drug trafficking. The U.S. Drug Enforcement Administra- tion was reportedly keeping a plane ready to fly him to America as soon as the last i was dotted on the extradition papers. Yet Escobar, Rodriguez Gacha and the other drug, lords had all escaped-per- haps into the Colombian jungles, maybe to Peru, Brazil or Panama, where strongman Manuel Antonio Noriega has helped them hide out during previous crackdowns. The Extraditables on Thursday issued a bulle- tin (printed on stationery with the cartel's makeshift trademark) declaring war to the death on any politicians, judges, journalists or members "of the political and industrial oligarchy" who oppose them, adding men- acingly that they would not "respect the families" of their targets. To underscore those threats, the gangsters bombed the headquarters of the Conservative Party and of Galan's Liberal Party campaign or- Geraldo Moncada, 42: Money launderer for the Escobar and Ochoa families. Under indictment in Atlanta. Jose Santacruz Londono, 45: Partner of the Rodriguez Orejuelas. A prominent figure in the Callcartel, whose gang dominates the New York drug market. Under indictment in New York. Jose Ivan Duarte Acero, 37: Indicted in Miami for the attempted murder of two DEA agents. ganization, and burned the ranches of for- mer Finance Minister Edgar Gutierrez Castro and Senator Ignacio Velez Escobar. Can the Colombian government win this war against the gangsters who smuggle into the U.S. an estimated 80% of all the cocaine snorted or smoked by Americans? The record is not encouraging. The drug barons have been forced to flee abroad be- fore, notably during the crackdown that followed the 1984 assassination of Justice Minister Rodrigo Lara Bonilla, only to re- turn and flaunt their wealth and power more ostentatiously than ever. President Barco will have to sustain the campaign-at considerable risk to his own life-long after public outrage at the rubout of Galan has subsided. In an interview with TIME earlier this year, Barco asserted, "We're fighting a struggle that implies such suc ing to pay." But, he said, "fighting against drugs means fighting for democracy." Even if Barco persists, though, Wash- ington is concerned that the Colombian government cannot match the drug gangs in money, firepower or training. The car- tel runs a regular school for motorcycle- riding assassins (called sicarios) just out- side Medellin. There, as shown on a videotape boldly distributed by the coke cartel, aspiring murderers are drilled in such techniques as twisting around on their choppers to blanket a car with lethal gunfire as they roar past. The trainers have been identified as British, South Af- rican and Israeli mercenaries; an embar- rassed Israeli government pledged last week to investigate the reports and, if they are true, do all it can to stop such activity. The U.S. aid acka e to B rc il'- ha ofA " to I - e N RDP96-00789ROO3501040009-0 balance. In response to Colombian re- quests, by Thursday evening Bush's White House staff outlined to the President what could be scraped together. Bush insisted that the aid had to reach Colombia fast and be paid for without hurting other countries or Government programs. The assistance was shaped into a formal plan by Friday morning and announced by the White House that afternoon, following consultations with congressional leaders. It includes 20 Huey helicopters, machine guns, mortars, 18-man assault boats, jeeps, radio equipment and ambulances. The first installment, consisting of eight Hueys and various small arms and am- munition worth $20 million in all, should be delivered in the next 14 days, the rest within a month or so. OT here is some talk too of sharing more intelligence with the Bo- gota government. In the past, the DEA pointed the Colombians to the sites of cocaine labs. But the CIA and the National Security Agency refused to make available satellite photographs and electronically intercepted messages- with some justification, considering how thoroughly the Colombian government was thought to be honeycombed by drug- gang spies. Despite some initial press specula- tion, however, Bush from the beginning firmly ruled out the use of,U.S. troops, and made that stand public after tele- phoning Barco Monday night. Barco briefly raised the subject only to dismiss it; the Colombians, he said, do not want any such assistance. Both Presidents are well aware that the presence of armed Yankees would be bitterly resented as U.S. interference. The White House, however, rather nervously disclosed that a "small" band of Americans will be dis- patched to train the Colombians in the use of the military equipment they will be getting. One official estimated the number of trainers and support person- nel at 50 to 100.. U.S. troops may not be needed any- way: possibly the drug lords began the lat- est round of murders in desperation be- cause the Colombian government was already putting a deep crimp in their ac- tivities. One of the hits was on Medellin police chief Valdemar Franklin Quintero, who had commanded an operation called Rainbow that resulted in the destruction of 28 cocaine-processing laboratories and the capture of eleven tons of the drug. Even more important, Colombian au- thorities in the first six months of 1989 seized more than a million gallons of pro- cessing chemicals such as ether and ace- tone-enough to make 320 tons of co- caine, almost the entire estimated yearly output of the cartel. It was the rubouts of Franklin Quintero and Superior Court Colombian police commander with a cache of cocaine seized in a government raid Soldiers awed by the obscene lavishness of drug lord Rodriguez Gacha's bathroom The murder box score: 178 judges, one Justice Minister, one editor ... Magistrate Carlos Valencia, who invali- dated a jury's verdict acquitting Rodri- guez Gacha of murder, that caused Presi- dent Barco to declare that he was reviving the extradition process. The murder of presidential candidate Galan, occurring minutes before Barco went on television, then prompted the mass arrests and the escalation to full war. Though the U.S. has a big stake in the battle in Colombia, it cannot do much besides send materiel and cheer for Barco. Washington's antidrug policy is moving away from interdiction of supply to cutting down demand at home. Bush's program will propose shifting funds to expanded drug-educa- tion and -treatment programs, and stiff- er penalties for casual users. Such an emphasis on curtailing the U.S. appetite for cocaine and other drugs is fine by the Colombians. As President Barco told TIME, "Every time a North Ameri- can youngster pays for his vice in the streets of New York, Miami or Chicago, he becomes a link in the chain of crime, terror and violence which has caused us so much damage and pain. The best help the U.S. could give for the tran- quillity and the defense of human rights of Colombians would be attacking face to face the consumption of drugs in that country." After years of nagging Colombia to crack down on its cocaine gangsters, the U.S. is seeing the government literally risk its life to do so. Now the question is how hard America is prepared to fight the drug war in its own streets. -Reported by Dan Goodgame/ Kennebunkport, John Moody/Bogota and Elaine Shannon/Washington rop y r Release 2000/08/?&E,CIA' P9&-OO789ROO35O1O4OOO9-0 Approved For Release My Lunch with Felix I or Felix Bloch it was "just another Fday," but a meal with him last week at Washington's posh Jockey Club took place under the watchful gaze of FBI agents two tables away, while a posse of reporters and TV cameramen waited out- side. Two months have passed since the State Department accused Bloch of con- tacts with a Soviet agent, setting off a cir- cus of public surveillance but no formal charges. Yet as Bloch sipped a vodka ton- ic and spoke angrily of the "F- Bureau of Incompetents," he seemed little changed from the career foreign-service officer I have known for more than 28 years. "I guess the bottom line is they don't have a case yet," he said. Bloch, 54, appears much more dy- namic than the stiff-necked, melancholy personality portrayed on television. Al- ways a meticulous dresser, he suggested that we meet "someplace where you need a coat and tie" in order to keep the casual- ly attired press mob outside. "Do you really think I'm dour?" he began., referring to a description of him in a recent issue of TIME. It seemed an odd concern for a man at the center of the most serious State Department espionage scandal since the Alger Hiss affair. But perhaps Bloch's preoccupation with the media is understandable: he carried with him a color photo of a woman knocked to the ground in a supermarket by a burly TV cameraman who had been tracking Bloch's grocery cart. "That's the way it is nowadays," he said, sighing. Some suggest that Bloch enjoys his notoriety. Yet he has rejected a barrage of telephone calls and messages from Diane Sawyer asking him to appear on Prime Time Live and from Mike Wallace for 60 Minutes. Bloch plays along with the re- porters who clog his every step. "Longev- ity runs in the family," he cautions. "This could go on for another 35 years." ounter with a suspected spy tion is ambivalent. At his first FBI interro- gation, on June 22, he not only surren- dered his diplomatic passport, as he was required to do, but volunteered to give up his regular passport as well. He says he agreed to permit the FBI to search his car s e r dew and apartment without a warrant and even reminded the agents to check the cellar storage space. But when Bloch and his wife Lou returned from a trip to New York City, they found a valuable chande- e lier cracked, the windows open and the d air conditioning running. They submitted a bill to the FBI. To Bloch's great irrita- e e tion, the FBI also confiscated his private Every breath you take, every move you make: Bloch In a quiet moment in Washington "Longevity runs in the family; this could go on for another 35 years.' With the skill of a veteran diplomat, he dodges questions about espionage. "There have been no charges," he said at lunch. What of the Government's statement that he had been involved in a "compromise of security"? "What's a `compromise'?" he asked coyly. Anyway, he added, "there's no evidence of a compromise." Does that mean he is innocent? Bloch paused an agonizing 30 seconds. "I can't comment on particulars, for then I must comment on the whole." He has heard that a federal grand jury is investigating. "What more can they learn?" Bloch asked. "They have all my papers and have talked to all my friends and colleagues:" A W6 ]t~j "Fis l le hill - - papers and only belatedly returned a checkbook, with just three blank checks, so he could pay some bills. Angered by intense surveillance in New York City, Bloch took to marching up one-way streets, causing traffic tie-ups as the purs
Y'all are f****** fighting I wigged system you f****** retards from the top goddamn down it's rigged how stupid do you have to be
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CIA involvement in Contra cocaine trafficking
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For the related broader allegations of drug trafficking by the CIA, see Allegations of CIA drug trafficking.
A number of writers have alleged that the United States Central Intelligence Agency (CIA) was involved in the Nicaraguan Contras' cocaine trafficking operations during the 1980s Nicaraguan civil war in efforts to finance the Contra group that was trying to topple the revolutionary Sandinista government. These claims have led to investigations by the United States government, including hearings and reports by the United States House of Representatives, Senate, Department of Justice, and the CIA's Office of the Inspector General which ultimately concluded the allegations were unsupported. The subject remains controversial.
A 1986 investigation by a sub-committee of the Senate Foreign Relations Committee (the Kerry Committee), found that "the Contra drug links included", among other connections, "[...] payments to drug traffickers by the U.S. State Department of funds authorized by the Congress for humanitarian assistance to the Contras, in some cases after the traffickers had been indicted by federal law enforcement agencies on drug charges, in others while traffickers were under active investigation by these same agencies."[1]
The charges of CIA involvement in Contra cocaine trafficking were revived in 1996, when a newspaper series by reporter Gary Webb in the San Jose Mercury News claimed that the trafficking had played an important role in the creation of the crack cocaine drug problem in the United States. Webb's series led to three federal investigations, all of which concluded there was no evidence of a conspiracy by CIA officials or its employees to bring drugs into the United States.[2][3][4] The Los Angeles Times, The New York Times, and The Washington Post launched their own investigations and rejected Webb's allegations.[5] However, an internal report issued by the CIA would admit that the agency was at least aware of Contra involvement in drug trafficking, and in some cases dissuaded the DEA and other agencies from investigating the Contra supply networks involved.[6]
Early reports of Contra cocaine trafficking
FBI probe
Kerry Committee investigation
Dark Alliance series
Investigation after Dark Alliance
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This statement alone is f****** stupid drug traffickers my ass there aren't even any drugs in the drugs he's over a bright idea that was!
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DRUG TRAFFICKERS TAKE CONTROL OF PARTS OF MEXICO
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Document Number (FOIA) /ESDN (CREST):
CIA-RDP98-01394R000200030027-6
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RIPPUB
Original Classification:
K
Document Page Count:
3
Document Creation Date:
December 27, 2016
Document Release Date:
July 25, 2013
Sequence Number:
27
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Publication Date:
October 9, 1987
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Declassified in Part - Sanitized Copy Approved for Release 2013/07/25: CIA-RDP98-01394R000200030027-6 I e's) STAT 4 t?* Declassified in Part - Sanitized Copy Approved for Release 2013/07/25: CIA-RDP98-01394R000200030027-6 . . ? . I a4mae.4tt, rI'i k 11914' ' norm 1P' ? ? r"'' '0' Declassified in Part - Sanitized Copy Approved for Release 2013/07/25: CIA-RDP98-01394R000200030027-6 WalI/VIttsl TIMES . DATE 9 i Drug traffickers take ? PAGE P') By Dav d Brock control of parts of Meac9 ft David Brock ? ? GUADALAJARA, Mexico tn the Ahrens border sown of Naco, ? Mexican cos- toms officer entering the United States was discov- . end transporting 150 pounds of marijuana In the trunk of his can Altera skirmish with U.S. Customs ?Maas, during which be assaulted ? U.S. officer, the men fled back to Mexico on foot. U.S. Customs agents seized the cat the marijuana and the Mexican's uniform jacket. Upon learning of the incident, William von Raab, the commistdoner of Customs, implored his Mexican otemierPert in a letter to take some action to find the would-be smuggler, who apparently is still employed at the Maxim customs &genet' The only =Wen from Mexico an fan a request that the man's jacket be re- in the fano 1910s and early 1980s, marijuana and her- ein trafficking from Madco seemed under control; through aggissattn joint action with the 'United States, Mexico's share of its :northern neighbor's heroin market dropped by half, to 35 percent. A 1984 report by the House Select Committee on Narcotics Abuse and Con- trol called Mexico's marijuana and opium -poppy eradication program an enormous success" and "the best in the world." But by 1986, the State Department concluded in a report that Mexico posed "die most serious problem in International narcotics control" for the United States. Dizninishing control by the Mexican government over the drug trade, the report said, was "in part because of in apparent spread of drug-related corruption which has affected every facet of the enforcement program." . What happened? Officials in Mexico essentially itoPPed cooperating with the United States, providing a bow to Mexican drug producers and traffickers, whose activities have reached alarming new heights in the past two years. U.S. officials estimate that Mexico is now the No. 1 source of heroin and marijuana entering the coun- try. And although most cocaine is still produced in Co- lombia, in the same two years Mexican dealers have become significant wholesale brokers, smuggling from Colombia at least one-third of the roughly 121 tons of cocaine believed to haw been consumed in the United States last year. US. government estimates show that this new cocaine business brought Mexican drug traf- fickers about 81.23 billion for the year This hod* influx of additional money has emboldened the traffickers and allowed them to bribe significant numbers of officials, paralyzing the Mexican govern- menrs ability to fight its drug war U.S. officials its hfeicieci City sity a vast network of Mexican officials is involved in the drug business, including many who sup- Madly engaged in the antinarcotics efforts. -For some months, rumors have circulated in Mexico that Juan thedefense minister who a t part of Me iresta non program, is himself involved in the drug trade. U.S. intelligence sources say evidence about the general is "sketchy," but they say with assurance that his son, Juan Adro Gardoqui, a former federal prosecutoTc-ff vitriting in wague with major traffickers, passing along sensitive Information on drug investigations and im- pending raids. In addition, the United States has intel- ligence information clearly linking top officials of the Mexican security police, Mexico's Interpol office (a sec- tion of the attorney general's office), three Mexican gov- eroors and cousins of President Miguel de la Madrid Hutted? to Mich involvement ?vith drug kingpins. In lone last wan Mr von Raab, who has referred to the U.S.-htexican border as a "heroin highway" and "marijuana mainstreet," accused a Mexican governor of growth sly.4.61 poppies and marijuana cm his preprt. y. Mr. von Raab mistakenly identified the accused as the governor of the state of Sonora; he intended to refer to Antonio lbledo Corr*, at that time the governor of the state of Sinaloa. U& law enforcement sources have confirmed that in - early 1986, Miguel Felix ?Allard?, ? fugitive trafficker wanted in connection with the murder of. US. drug enforcement agent in 1983, was a guest at the ranch of Tbiedo Corr*. The former governor is said by U.S. sources to have nude a point of looking the other way during his tenure in return for payoffs. During the investigation of the 198$ murder of Drug Enforcement Administration agent Enrique Camarena Salszat slain by Mexican drug traffickers, the extent of govertunan drug-related corruption was tint doc- umented. In fact, U.S. law enforcement officials believe Mr Camarena was killed because he was having success in gath- ering information on corrupt Mexican police authorities and government offi- cials. Mexican federal police officers under Investigation in the Camarena case told investigators of their widespread prac- tice of guarding drug crops and escort- ing shipments north in return for bribes and drugs. Their statements charged that Gabriel Gonzalez, the late chief of the homicide division of the federal po- lice, ordered the agents to run errands for traffickers, guard their lavish parties and pass on tips about drug roadblocks. Of.Megcnt&in.tliegedentlaccurity Diesctocata, one of Mexico's national po- lice/circa& 400 were dammed because Joemociation:Lon sut==.:Ttt noeherladtbave been Filed against any of diem. The head of thezdifeztriagile Antonio Zorrilla Perez, left the country for wen as revelations surfaced. His case has gained particular notoriety, as his signature was on a phony police cre- dential found in the possession of Rafael Caro Quintero. One bright spot in the investigation of the Camarena murder has been the ar- rest of Mr Caro Quintero, reputedly ? major Sinaloa drug smuggler. He was able to elude the authorities for months by staging a getaway from the Guadalajara airport, which was guarded by officers of the Federal Judicial Police. The officers were under orders to arrest Mr Caro Quintero. In order to ensure his escape, he wrote a check for $300,000 and handed it to an aide. The aide showed 1110 the top police commander and explained that it would be cashed the next morning and distributed amoitg the officers if Mr. Cam Quintero could board Ms plane. The deal was struck, and Mr. Caro Quintero flew to Costa Rica, where he was later captured. He is now awaiting trial in Mexico City, whlicthelftthcazumaraincit has arrested dolens of drug traffickers in connection with the murder of Mr. camezens, only one cotnion has been_secured so tar, that of Armando Pavan Reyes-theiederaLludi Ililittander in Guadalajara who took Caro Quin- teitiWribe. He is out on 8300 bail-awaiting appeal. This failure to gain coavidilia?is-trparrof-e..larger pattern that has been a major irritant to U.S. officials who work with Mexico on the drug issue. The 1986 report from the State Department called Mexico's rec- ord of prosecuting drug traffickers a "dismal picture." Says cue DEA official: "The Mexican laws are written to the advantage of the drug smugglers. They don't allow wiretaps. They have no conspiracy provisions. Basically, you have to catch someone in the act. This means there are few prosecutions." In the wake of the Ounarena investigation, Mr. Zr- rills was allowed to resign quietly. Miguel Aldana, for- Commissioner of Customs William von Raab ? STAT Declassified in Part - Sanitized Copy Approved for Release 2013/07/25: CIA-RDP98-01394R000200030027-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/25: CIA-RDP98-01394R000200030027-6 umented. In fact, U.S. law enforcement officials believe Mk Camarena was killed because he was ha ing success in gath- ering information ln corrupt Mexican police authorities d government offi- cials. Mexican federal p611cc officers under investigation in the Cmarena case told investiptors of their videspread prac- tice of guarding drug crops and escort-. ing shipments north in return for bribes and drugs. Their statkments charged that Gabriel Gonzalez, e late chief of the homicide division o ithe federal po- lice, ordered the agents lto run errands for traffickers, guard their lavish parties and pan on tips about drag roadblocks. Of 2,200 agents in the FrIderalSecurity Directorate, one of Mexica's national po- lice forces, 400 were dismissed because the government suspected they had illicit ' "asaociations" with drug trafficking, but no charges have been filed against any of theni. The head of the directorate, Jose Antonio &while Perez, left the country for Spain as revelations suffaced. His case has gained particular 'try, as his signature was on a phony ol1ce cre- dentialfotmd in the possess' of Rafael Citro Quintero. One bright spot in the Intestigatiost of the Camarena murder has been the ar- rest of ME Caro Quintero, rePtitedly major Sinaloa drug smuggler \He was able to elude the authorities months by staging a getaway from the Guadalajar airport, which was guarded by officers of the FodeiW Judicial Police. The officers Isere under orders to anbst Mr. Caro Quintero. In order to ensure his escape, he wrote a check for 8300.000 and handed it to an aide. The aide showed it to the top police commander and explained that it would be cashed the next morning and dikributed among the officers if Mr Caro Quunero could his plane. The deal was struck, and Mr. Caro ter? flew to Costa Rice. Where he was later captured. a is now awaiting trial in Mexico City While the Mexican government arrested dozens of drug traffickers in connection wi the murder of Mr. Camarene, only one conviction has secured so fax that Of Armando Pavon Reyes, the F Judicial Po- lice Commander in Guadalajara who k Caro Quin- tare'. bribe. He is out on $300 bail Ibis failure to gain convictions is panne that has been a major irritant who work with Mexico on the drug / San Frenetic? Los Metes San Diego The Drug Flow from Mexico Mexican organizations move brown heroin and black tar heroin into the Southwestern United States. The Mexican groups also use these routes to move minivana and cocaine In concert with Colombian trafficking organizations. The enlarged area shows the malor Mexican Ma* where drugs are produced. ?. ' , Chicago ? tri? Hermosillo SONOFtA Chihuahua CHINUAILIA r NALOA Ternszula Culiacan DURANWourerigoti, Mazatlan Pacific Ocean Enlarged area o an Wes SOuRCE:ySI woondu Dric Strategy. WOO Otat Mexico MEXICO , Mexico kVERACRUZ 1 BELIZE ,.---- City dili / ,.. ..c GUATEMALA Ht1RAS EL SALVADOR "..":31( i COLOMBIA - CHIAPAS 47: ? NAYARiT Poriec Ocean Mho as &Prez& of a larger U.S. officials tie The 1986 regent from the State Department call Mexico's rec- ord of pnisecuting drug traffickers a"'mal picture." Says ant DEA official: "The Mexican la are written to thitadVentage of the drug smugglers, don't allow wiretaps. They hew no conspiracy provief . Basically, you hose to catch someone in the act. This eans there are few prosecutions." In the wake of the Camarena investiga Mr. Zor- rills was allowed to resign quietist Miguel dans, for- ''--"missioner of Customs William von Raab mer head of Mexico's Interpol office, left office over- night after reports surfaced that he took bribes from cocaine dealers. The Mexican government has also failed to prosecute the police officers believed to be involved in the torture of U.S. drug enforcement agent Victor Cortez Jr. in August 1986. Official cooperation with the drug merchants takes many different forms, DEA officials say. The centerpiece of the drug enforcement program is the crop eradication effort. But in the past two years, says one drug agency source. U.S. officials have received reports that the "Mexican air fleet is not flying in the areas where culti- vation is occurring. Or they say they are spraying when they are not, or they are spraying water instead of her- bicides." Often, Mexican pilots in U.S.-financed eradication programs are visited by drug traffickers after a successful run and bought off. They either make no more runs or skip fields when they do. There are 13 elite zone commanders in Mexico's drug war. Consider the story of one, detailed Ins recent Mexi- can press account. Police officer Hugo Quintanilla was promoted and put in charge of a fleet of helicopters and 20 pilots. His mandate: to destroy marijuana and poppy cultivation in the south of Mexico. Within months, ac- cording to the report, Mr. Quintanilla was flying his air force at the behest of the drug underworld, pocketing $20,000 an acre not to spray herbicides and bribing the policemen under him to go along with him. For $70,000, he turned his officers into baggage handlers for an air- borne U.S.-bound shipment. Mr von Raab, in congressional testimony, summed up last year: "The Mexicans are, in effect, the freight for- warders and security services for Colombian drug smuggling groups." No one can say with certainty why Mexico's drug Vbee% has beset the *don for the past few MIST anus that Mexican Officials, especially lowerranking ones like local police officers, are practically incapable of turning their backs on the mammoth bribe offers of the cocaine made. Of the production level, a DEA official in Mexico says: "Look, you've got farmers who are doing nothing else. This is the only good cash crop they can producer Others say that members of the ruling Pa rt ido Revolucionario Institucional, concerned about peasant unrest in the mountains, have ordered the police to turn a blind eye to cultivation of drugs. In addition, Mexico has become an alternative drug trafficking route ? leading to Texas, New Mexico, Ari- zona and California ? as the United States has success- fully slowed the flow of drugs into Florida. Efforts to win 'similar victories along the border, however, have been stymied by Mexico's refusal to allow U.S. agents to pur- sue drug traffickers into Mexican territory, U.S. funding MAC by SChOtt CheiThe Washington the, for the Mexican anrinarootics program in 1987 is VS billion. "As long as drug smugglers are free either to fear& their planes to Mexico and land in safe haven,' matter, drug smugglers are free just to quickly. rail *cross the Rio Grande river and find theniselveslikt haven, the U.S. effort is doomed to failure:' Mi. vas Ra testified. Proposals for more rigid control of the &WSW by US. officials, in effect sealing off the semipermeable- 1,900.mile border against unauthorized crosaingi, Mr* not yet been seriously considered, US. officials sarAlk such proposal would be profoundly disturbing lib Mexico, which would have to contain the thousands et disaffected Mexicans who stream across the border Into the United States each year. DEA officials in both the United States aitif talk& say that the Mexican government has a grovriorieby By 1986, the State Departmeift;,1 concluded in a report that Marco posed "the most serious probleiri in international narcotics control" for the United States, interest in controlling the drug trade, as its expansion II weakening the authority of the central gave's:meat Aie some regions. In November 1985, in southern Vetacnit state, drug traffickers killed 17 Mexican police officers, asaistsited'all paiisati "1'4 bodies of [Our peasants ntittklagid speaking out against dttigsattYpubliC was to show the local governor that he Ought to the narcotics traffickers, not the PRI," says Obi" can law enforcement official. Adding to high-level apprehension is the smuggibmgd large quantities of firearms into Mexico, many of *Mai end up in the hands of drug traffickers. No firearms are manufactured in the country; most are bought bithe United States and transported across the borden.Some eventually go farther south, headed for commimistgnei rillas in El Salvador and Guatemala. U.S. Hordes' Patrol agents report a steady increase in the numberlif tni seized in smuggling investigations at the U.S.-Modetat border. A thousand guns were seized in 1984;4,000 IS 1985 and more than 10,000 in 1986. ' ' ' Declassified in Part - Sanitized Copy Approved for Release 2013/07/25: CIA-RDP9R-n1lci4pnnnormnor,,?
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Oh how you retarded Dixie they're keeping track their little manifesto so they can jack off to how much they screw you all over yeah their files none of that house I was telling you about that they're playing with that f****** retard
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Search formSearch Query for FOIA ERR:
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BANKS TO HANDLE CONFISCATED DRUG ASSETS
Document Type:
CREST
Collection:
General CIA Records
Document Number (FOIA) /ESDN (CREST):
CIA-RDP98-01394R000200040009-5
Release Decision:
RIFPUB
Original Classification:
U
Document Page Count:
2
Document Creation Date:
December 27, 2016
Document Release Date:
August 9, 2013
Sequence Number:
9
Case Number:
Publication Date:
July 24, 1990
Content Type:
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noft/?I .1.031 Declassified and Approved For Release 2013/08/09: CIA-RDP98-01394R000200040009-5 1/4.1 FOR OFFI AL USE ONLY 20 LATIN AMERICA Banks To Handle Confiscated Drug Assets 90WB0018B Mexico City EXCELSIOR in Spanish States Section 22 Jun 90 pp 1, 4 [Excerp u ad Juarez, Chihuahua, 21 June?The PGR's [Office of the Attorney General of the Republic] confiscations director, Domingo Zamora Arrioja, reported here that over $1 billion in properties seized from drug traffickers in the country will be administered by the banks, based on an agreement between the Attorney General's Office and the national banking system. He stressed that the properties, worth over 28 billion in Mexican pesos, will be transferred to the banks so that, through their infrastructure, and by charging for their services, they can manage hotels, restaurants, shopping centers and residential houses confiscated during the attachments. In an interview held at the Attorney General's Office facilities, he noted that, to date, $60 million in cash has been placed at the disposal of the Federation's Treasury during the present administration. Based on his assessment, detailing the confiscations made by the PGR in each state, Zamora announced that, from the standpoint of dollars, assets, and real estate seized, Miguel Felix Gallardo ranks first nationally. On the other hand, according to the PGR's Confiscation Directorate, the volume of assets for administration, in order of priority, are located in the state of Sinaloa, followed by Jalisco, and Chihuahua in third place. Ranking next are Sonora and San Luis Potosi, with the assets seized from Cervantes Uriastegui. Zamora emphasized that, "The pressing need for tech- nical personnel trained in the administration of public assets, as well as businesses and various types of com- mercial establishments currently under attachment, has arisen because the Attorney General's Office lacks the personnel to engage in managing drug traffickers' assets. Banking institutions, on the other hand, have such personnel. Furthermore, 60 percent of the residential housing seized from people, implicated in crimes against health, is deteriorating." Rural properties, including farms and agricultural machinery, have not represented any problem for the PGR, because they have been placed at the disposal of both the SRA [Agrarian Reform Secretariat] and dif- ferent peasant associations in the country. [passage omitted] Cocaine Seized From Cali Cartel Members 90WB0021A Mexico City EXCELSIOR in Spanish 24 Jun 90 pp 5-A, 48-A [Text] Two Colombians belonging to the Cali Cartel were arrested with nearly 51 kg of cocaine base that they were taking to show a ring of Americans at the Matam- oros border as a sample. JPRS-TDD-90-030-L 24 July 1990 Gustavo Perez Marmolejo and Eduardo Marmolejo nrique were carrying 50 kg and 700 grams of cocaine se in a late model car. It would have sufficed to produce slightly over 700,000 doses of the alkaloid. The agents noticed them acting suspiciously, but allowed them to continue. When they were about to reach the checkpoint "station" on the highway at Ciudad Victoria, Matamoros, the drivers attempted to turn the car around and drive back on the road by which they had come, but the agents managed to catch up with them. They were identified by their Colombian passports and documents, which indicated that they were residents of the United States. When their car was searched, how- ever, 50 kg of cocaine were discovered in the trunk. They also had four suitcases containing 48 packages holding 700 grams of cocaine. When the subjects under arrest were brought before the Federal Public Prosecutor's Office [MPF], they claimed to be natives of Cali, Colombia, and admitted having been engaged for over a year in 'smuggling drugs into Mexico and the United States. They told the MPF that, recently, in addition to taking drugs to the neighboring country, "We received them on Mexican territory arriving from Colombia." They revealed that there are many clandestine landing strips in our country, and that drug dealers currently have wonderful radiocommunications equipment and all the necessary resources to enable airplanes arriving from Colombia or other countries in the southern part of the continent to land in Mexico. They also informed investigators from the narcotics division of the Office of the Attorney General of the Republic, that they were working for someone very powerful, who has replaced the person nicknamed "El Mexicano." Approximately two months ago, the latter was killed in Colombia when engaged in a confrontation with the public forces. They claimed that this person was Eduardo Martinez, a man with almost worldwide con- tacts. Business Leader on Border `Narco' Investment 90WB0021C Nuevo Laredo EL MANANA in Spanish 12 Jun 90 p B3 [Text] Sergio Alvarado Chavez, manager of CANA- CINTRA [National Association of the Processing Industry] in Nuevo Laredo, claimed that narco- businessmen are making large investments along Mex- ico's northern border, in order to facilitate the illicit laundering of dollars originating from drug trafficking. He maintained that the activities which profit the most from the drug dealing octopuses range from real estate brokerages and money exchange establishments to car washes and lubricators, and the control and management of nightclubs. FOR OFF! AL USE ONLY Declassified and Approved For Release 2013/08/09: CIA-RDP98-01394R000200040009-5 Declassified and Approved For Release 2013/08/09: CIA-RDP98-01394R000200040009-5 FOR OFFICIAL USE ONLY LATIN AMERICA JPRS-TDD-90-030-L 24 July 1990 the automatic weapons. There was also a modern power plant with a generating capacity of 10 kilowatts, which supplied the nearly 50 lamps used for drying the alka- loid. A number of individuals present on the estate grounds were arrested with a view to pursuing the pertinent investigations. They were identified as Hernando Mar- tinez Losada, Angel Luis Rodriguez, Jesus Maria Morales Toro, Lisandro Escudero Agudelo, Jorge Enrique Contreras Miraflores, Evelio Pacheco Lopez, Orlando Victor Castiblanco, Guillermo Gonzalez Nava, Carlos Enrique Ortiz, and Martin Alonso Cadena. The Method Used "The laboratory belongs to the widow of Jose Gonzalo Rodriguez Gacha and the organization he left behind. Its installations are very well-organized. It is situated adja- cent to a sawmill which produced planks. They were then cut in such a way that cocaine could be concealed in them, and subsequently glued back together so that the substance could not be detected," Brig. Gen. Harold Bedoya Pizarro said in explaining how the clandestine complex operated. He said that the other four laboratories located in t sector were being dismantled, while some others in t neighborhood had been taken over by the Elite Corps of the National Police several months ago. The finding of the laboratory, according to official reports, came about thanks to the intelligence work done by units in the Fourth Brigade, after infiltrating the criminal organization. The commanding officer indicated that the cocaine was sent to Medellin by road, or was flown in using the clandestine airstrips located in the Doradal sector, sev- eral kilometers to the south of the Las Mercedes Depart- mental Police Inspection facility. The coca-processing complex was skillfully concealed on the property by heavy vegetation, and the water sources and tanks for the storage of the chemicals were conve- niently placed for purposes of production, Bedoya Pizarro explained. He said that there were workers among those arrested who, although they were not directly involved with the laboratory, knew of its exist- ence. A court unit with jurisdiction over this type of case will be entrusted with the task of pursuing the pertinent investigations and clarifying the legal status of the indi- viduals arrested there at the site. 19 the Republic [PGR], resigned from his position yes- terday. Although the department did not announce the reasons for the resignation, or reveal whether he had been dismissed, it claimed that all first commanders will be removed so as to implement the command rotation program. The group also includes circuit agents, who are the PGR's representatives in the states. The purpose is to prevent the officials from taking on commitments or misusing their authority. The announcement of Ramirez Franco's departure from the PGR, specifically, from the campaign against drug trafficking, caused shock; and even more so when it was learned that his position will be taken over by Mario Alberto Cuevas Cerda starting next week. The changes in first commanders began with those in Baja California, Sinaloa, Nayarit, Michoacan, Coahuila, and Nuevo Leon. The PGR itself stated that second commanders and deputy agents assigned to the antidrug campaign in each of the country's 32 states will also have to be rotated. [passage omitted Attorney General's Office Launches New Antidrug Pro ram MEXICO Antidrug Campaign Chief Resigns 90WB0018D Mexico City EXCELSIOR in Spanish 22 Jun 90 pp 5-A, 20-A [Excerpt] Jose Ramirez Franco, chief of the antidrug campaign under the Office of the Attorney General of PA20071371 exico in Spanish 0200 GMT 20 Jul 90 [Report by Juan Salazar Garcia from Ciudad Juarez] [Text] The Attorney General's office has announced in Ciudad Juarez, Chihuahua, the implementation of a new national antidrug program. Effective today, Ciudad Juarez became the temporary base for a brigade of antidrug agents from the Attorney General's office that will carry out a large-scale operation in rural areas throughout 57 municipalities in Chihuahua to locate and destroy poppy and marijuana crops. Assistant Antidrug Delegate Jose Ponce Villa will be in charge of the operation. He said that the special group from the Attorney General's Office is part of a national program being carried out in all the states, particularly to wage a permanent struggle in the northern zone jurisdic- tions, including the states of Chihuahua, Durango, and Sinaloa. These states have been marked as important points in the drug traffic. [Begin Ponce recording] Our job is to coordinate the aircraft operations with pilots, navigators, logistic sup- port members, and some members of the Federal Judi- cial Police who have been specially appointed to the program. The program is called the Special Program for the Eradication of Marijuana 1990. Look here. The republic is divided into two zones. In the northern zone we have 18 aircraft, specifically 18 Bell- 206 helicopters; four [word indistinct] aircraft to trans- port personnel; and five Cessnas for reconaissance oper- ations. [end recording] FOR OFFICIAL USE ONLY Declassified and Approved For Release 2013/08/09: CIA-RDP98-01394R000200040009-5
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He's hiding somewhere right now can you find his retarded ass please ty tie his ass the f****** down
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Big White Lie: The CIA and the Cocaine/Crack Epidemic
NCJ Number 150849
Author(s)
M Levine; L Kavanau-levine
Date Published 1993
Length 480 pages
Annotation
This book, written by a former undercover agent working for the Drug Enforcement Administration (DEA), charges that the Central Intelligence Agency and other U.S. Federal agencies are perpetuating the scourge of drugs on American streets while they profess to be fighting the war on drugs.
Abstract
The author contends that this account is based on real incidents, conversations, and events reconstructed from tapes, personal diaries, court transcripts, and interviews. His principal arguments are that the CIA has perverted the American criminal justice system by protecting drug dealers and murderers from prosecution; that Federal judges and prosecutors alleged to have broken narcotics laws have been protected from investigation; that the government of Bolivia and South American drug cartel leaders have been assisted and even paid by the CIA. Finally, the author maintains that without CIA support, South American cartels and the epidemic of cocaine and crack use in the U.S. would never have occurred.
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No petroleum is not just for putting around your a****** when they f*** you right?
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THE INTERNATIONAL PETROLEUM CARTEL
Document Type:
CREST
Collection:
General CIA Records
Document Number (FOIA) /ESDN (CREST):
CIA-RDP57-00384R000700130001-2
Release Decision:
RIFPUB
Original Classification:
K
Document Page Count:
409
Document Creation Date:
December 22, 2016
Document Release Date:
April 14, 2010
Sequence Number:
1
Case Number:
Publication Date:
August 22, 1952
Content Type:
REPORT
File:
Attachment Size
CIA-RDP57-00384R000700130001-2.pdf 32.37 MB
Body:
Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 82d Congress 2d Session THE INTERNATIONAL PETROLEUM CARTEL " STAFF REPORT TO THE FEDERAL TRADE COMMISSION SUBCOMMITTEE ON MONOPOLY SELECT COMMITTEE ON SMALL BUSINESS UNITED STATES SENATE AUGUST 22, 1952 Printed for the use of the Select Committee on Small Business UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1952 25 YEAR RE-REVIEW Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 SE ECT COMMITTEE ON SMALL BUSINESS (Created pursuant to S. Res. 58, 81st Cong.) JOHN SPARKMAN, Alabama, Chairman RUSSELL B. LON Louisiana CHARLES W. TOBEY, New Hampshire GUY M. GILLETT , Iowa LEVERETT SALTONSTALL, Massachusetts HUBERT H. HUM HREY, Minnesota EDWARD J TTIYE, Minnesota LESTER C. HUNT Wyoming ROBERT C. IIENDRICKSON, Now Jersey WILLIAM BENTO , Connecticut ANDREW F. SCHOEPPEL, Kansas BLAIR MOODY, M ichigan JAMES H. DUFF, Pennsylvania LAURANCE G. HENDERSON, Staff Director WALTER B. STULTS, Assistant Staff Director CHARLES M. NOONE, Connsel MiNNA L. RUPPERT, Clerk SUBCOMMITTEE ON MONOPOLY RUSSELL B. LONG, Louisiana, Chairman JOHN SPARKMAN Alabama WILLIAM BENTO , Connecticut CHARLES W. TOBEY, Now Hampshire ANDREW F. SCHOEPPEL, Kansas Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 STEPHEN J. SPINGARN, Commissioner. IIOil. JOHN SPARKMAN, FEDERAL TRADE COMMISSION, Washington 25, D. C., August 18, 196',2. Chairman, Select Committee on Small Business, United States Senate, Washington, D. C. DEAR MR. CHAIRMAN: Pursuant to the request made in your letter of August 18, 1952, I transmit herewith a copy of the staff report of the Federal Trade Commission on the International Petroleum Cartel. It is understood that this report will be published by your Monopoly Subcommittee, which is currently holding hearings on the effect of cartels and monopolies on small business. If and when hearings are scheduled concerning our staff report on the International Petroleum Cartel, the Commission will be glad to designate personnel to appear before your committee and discuss the contents of the report. By direction of the Commission. Sincerely, STEPHEN J. SPINGARN, Acting Chairman.. Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 PREFACE We are happy to have this staff report by the Federal Trade Com- mission on the International Petroleum Cartel. Our Monopoly Subcommittee, headed by Senator Long, has already held several hearings and issued a number of reports on monopolistic practices and cartel arrangements, particularly as they affect small business. This subcommittee was appointed in February 1952, and practically from its inception has been beleaguered by requests to investigate the alleged restrictive practices of the international oil industry. On April 23, April 29, and July 16, the subcommittee-in the course of public hearings-announced its keen interest in the staff report of the Federal Trade Commission on international petroleum cartels, and expressed the belief that the report should be released. On July 28, a letter was dispatched to the White House requesting that the report be made public. Now. that the President has approved this request, it is entirely appropriate that the report be included as part of our subcom- mittee's, series on monopolies and cartels. The Senate Small Business Committee has a profound and abiding interest in the effect of monopolistic and restrictive activities on the survival of independent competitive enterprise. Such activities are not always regional or even national in scope. When in exceptional, circumstances the fate of competitive free enterprise at home is inextricably linked with the pattern of business operations abroad, this committee will not hesitate to extend its investigations so as to determine the exact nature of these operations. However, our purpose is always the same: to discover the effect of certain business practices and arrangements on the American small-business man and on the American consuming public. With reference to the alleged Oil Cartel, it has been the aim of this committee to learn (1) whether or not five major integrated American oil companies have joined two foreign companies in a series of inter- national monopoly agreements;. (2) whether or not the structure of international oil prices has imposed an excessive burden on the economies of friendly nations, and thus on the American public which- is extending economic and military assistance to these nations; and, perhaps most important of all, (3) whether or not the dumping of foreign oil in the United States, at a net cost far below the price charged in Europe and the Middle East, is causing injury to inde- pendent American oil producers. It is our hope that publication of this report will contribute mate- rially to public knowledge and understanding of international business arrangements. It is a factual report and as such is subject, of course, to a variety of interpretations. If any interested party wishes to be heard, this committee will make time available so that all shades of opinion may be represented. Only after such hearings are completed, however, will our committee issue its final conclusions and recom- mendations on the effect of the alleged International Oil Cartel on Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 small busine s, in particular, and the consuming public of America, in general. I want to make it clear that this report is being published by our committee only after careful study and deliberation. It is my opinion that its release at this time is not likely to jeopardize our national security or undermine the aims of our foreign policy. The security aspect of the matter has been cleared with responsible agencies of Government. As to foreign policy, the goals of the United States in international affairs are clear: To attempt in every way possible to assure justice and freedom, under law, to all peoples of the earth. Publication of this report will certainly not interfere with the attain- ment of thes goals. There is another important reason for making this report available, and that is t subject the activities of great concentrations of economic power to the spotlight of publicity. It has long been the public policy of the United States to supple- ment the leg 1 provisions of the antitrust laws with broad, fact-finding powers. The fundamental purpose of fact-finding is to prevent the abuse of power. Where power exists there also exists the possibility of its abuse. Some two decades ago the Federal Trade Commission, through an e onomic investigation, restrained the abuse of power by the private u ility holding companies. Today the power of. the inter- national oil companies is so vast as to invite its abuse. By focusing the spotlight of publicity on the activities of these oil companies, the present r .-port of the Federal Trade Commission, like the earlier investigation of the utility companies, should prevent any possible abuse of pow r, either at home or abroad. The Senate Small Business Committee believes that it is the basic philosophy o the United States to oppose vast monopolistic con- centrations economic power. Practically alone among the great nations of the world, the United States-through fact finding and through enforcement of its antitrust laws-endeavors to hold in check the power o giant organizations. Whether privately or publicly owned, such organizations carry with them the inherent possibility that their overwhelming power may be abused to the' detriment of the people. The Senate Small Business Committee, in publicizing the operations of the international oil companies, wishes to reaffirm the determin tion of the American people that American companies, whether at home or abroad, shall so conduct themselves as to promote the interests f all people .everywhere. The Senat Small Business Committee, in issuing this report, is expressing its faith in Justice Brandeis' belief that sunlight is the best of disinfectar is and electric light the most efficient policeman. JOHN SPARKMAN, Chairman, Select Committee on Small Business. WASHINGTON, D. C., August 22, 1952. Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 CONTENTS rage Letter of Transmittal--------------------------------------------- III Preface----------------------------------------------------------- --------------- --- 1 ---------------------------- Introduction------------------------------------------------------ PART I. RESOURCES AND CONCENTRATION OF THE WORLD PETROLEUM INDUSTRY Chapter 1. The World's petroleum resources: 5 World's reserves -_--_____-_ ---- Principal crude producing areas of the world________________ 10 6 World crude oil refining capacity --------------------------- 12 World petroleum consumption and supply ------------------ The pattern of international trade in petroleum-------------- 14 II. Concentration of control of the world petroleum industry: 21 Control of the international petroleum industry------------- 21 Control by government monopoly_____________________ Control by seven international petroleum companies----- 23 22 Control of world crude reserves____________________ Control over world crude-oil production ------------ 224 4 Control over world crude-oil refining capacity ------- 25 Control of world cracking capacity_________________ Control of world petroleum transportation facilities-- 266 ------ ------------------- - Control over marketing Importance of intercorporato relationships in the international ------------------- - d t il i 29 ---------- n us o ry----;-------- Joint ownership of subsidiary and affiliated companies--__ 29 Interlocking directorates among the international petro- companies ---------------------------------- leum 31 32 Summary----------------------------------------------- PART II. DEVELOPMENT OP JOINT CONTROL OVER THE INTERNATIONAL PETROLEUM INDUSTRY' III. Development of joint control over foreign oil: Introduction: Background of interest in foreign oil---------- 37 _ _ _ _ _ _ _ _ _ _ _ _ _ Fear of an oil shortage in America--------------------- h cost of purchasing private mineral rights in America- Hi 7 39 g 4 0 Discovery of foreign reserves ------ s------------------- 40 Fear of foreign monopoly ----------------------------- Summary: The techniques of control------------- 45 IV. Joint control through common ownership: The Iraq Petroleum Co., Ltd.: History and early development---------------------------- en " d th 47 op e American-British dispute over Mesopotamia an 51 door-------------------------------------------------- ------- ------- ---------- -- ---- - foothold i bt n a a Early efforts of American oil companies to o 52 in Mesopotamia ------------------------------------- Negotiations with the Turkish Petroleum Co. (TPC), 53 1922-28----------------------- --------------- d 55 ----------------------- The open door plan is propose 55 The open door is partially closed---------------- ------ The open door is closed by the "self-denying clause -- _ _ - 56 The working agreement and the Gulbenkian controversy- _ i A 61 can mer Anglo-Persian's overriding royalty and the 63 group's share interest in TPC_________ ___ __ __ _ The scope of the restrictive provisions of the group (red-line), 65 agreement of 1928------------------------------------- Operations within the red-line area, 1922-39 ---------------- 67 VII Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Chapter IV. Joint control through common ownership-Continued page Th Iraq concession of March 24, 1931_____________________ 68 Eff et of restrictive provisions of the 1928 group agreement- 71 Gulf Oil Corp.'s option on Bahrein__________________ 71 Negotiations regarding Standard Oil Co. of California's Bahrein a d Saudi Arabian concessions--------------------------- 72 The discovery of oil in Bahrein alarms Anglo-Persian--------- 72 Standard Oil Co. of California and IPC compete for Saudi Arabia but IPC withdraws--------------- The Big Three attempt to reduce the red-line area- _ _ -------- 74 74 Att mpts to work out a compromise with the French and Gulbenkian -------------75 Big Three forced to meet demands of French and Gulbenkian or. price question-------------------------------------- 78 Big Three permitted to continue negotiations with Standard of 1 California but Gulbenkian blocks a group arrangement--- 78 The agency agreement-------------------- 80 Big Ifrhree continues to seek a better deal with Caltex but war ends negotiations---------------------------------------- 82 Summary----- -------------------- Add tional IPC concessions---_-_----_ ----- 84 Iraq Petroleum Co., Ltd ---------------------------- 84 Mosul Petroleum Co., Ltd-_-_-_____.______________ 85 Basrah Petroleum Co., Ltd------------------------ 85 utside Iraq -------------------------------------- 85 Petroleum Concessions, Ltd ------------------------ 86 Petroleum Development (Qatar), Ltd______________ Petroleum Development (Western Arabia), Ltd_ _ _ _ _ 61 Other Middle East areas ------------------------- 87 Miscellaneous subsidiaries and affiliates 8 9 Som operating policies, problems, and results _______ ______ --------------- 89 ax matters ------ _------------ ------------- ----------------------- 82 oyalty problems with the Iraq Government -_ _ - _ - _ - _ _ _ _ 91 rites charged Iraq consumers for petroleum products supplied by IPC-------------------- ---- 94 Worl~ War II and postwar developments___________________ 96 ff f ects o war upon IPC operations____________________ 96 Shipments disrupted_____________ 96 Red line arrangement for sharing crude is frustrated-_ 97 Ad hoc arrangements in lieu of red-line agreement 97 ostwar settlement--------------------- --- 99 CFP and Gulbenkian reinstated in IPC and war claims settled ______________-___ 99 The American group declare the red-line agreement dissolved ------------------------------------101 CFP takes the matter to court --------------------- 103 NEDC files a counter suit ----------- 104 Revised agreement negotiated and court actions withdrawn ----------------------._ 104 ---- ome postwar management policies and problems-------- 107 IPC opetates the Tripoli refinery------------------- 108 IPC's price policy ---------------------------- 108 Control over distribution ---------------------- Summary -----------------------109 V. Other common ownerships in the Middle East: The Arabian American Oil Co----------------------------- 113 he original Aramco con i cess on_______________________ 113 he Texas Co. obtains a 50-percent interest in the Arabian concession 114 n d .,.. . ., .,a,.... Arabia an a supplemental agree- ment concluded_116 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Chapter V. Other common ownerships in the Middle East-Continued The Arabian American Oil Co.-Continued Page Developments during World War II___________________ 117 Aramco's position at the end of the war_________________ 119 Jersey Standard and Socony-Vacuum purchase an interest in Aramco and Trans-Arabian pipeline--------------- 119 The Jersey-Socony-Aramco arrangement opens up mar- kets for Aramco's oil_______________________________ 120 Agreements and terms of the participation of Jersey Standard and Socony-Vacuum in Aramco and Trans- Arabian pipeline ----------------------------------- 122 The Aramco-Jersey and Aramco-Socony agreements----- 123 The Trans-Arabian pipeline agreements----------------- 124 The off-take agreements------------------------------ 125 Aramco's 1950 concession agreement with the. Saudi Ara- bian Government_____________________________ ____ 128 Kuwait Oil Co., Ltd.: Introduction---------------------------------------- 129 International background..--------------------------- 129 The Anglo-Persian, Gulf Exploration Co. agreement, De- cember 14, 1933 ---------- _ 131 Operation of Kuwait Oil Co--------------------------- 133 Reiteration of restrictive clauses in 1937---------------- 134 Postwar development________________________________ 134 Summary: Aramco-------------------------------------------- 134 Kuwait Oil Co., Ltd_________________ _ 136 VI. Joint control through purchase and sale of oil in the Middle East: Introduction-------------------------------------------- 137 Gulf-Shell agreement, 1947-------------------------------- 137 Source and nature of material discussed---------------- 137 Nature and effects of the Gulf-Shell agreement of 1947___ 138 Anglo-Iranian agreements with Jersey Standard and Socony- Vacuum for the sale of crude oil_______________________ 145 Jersey Standard-Anglo-Iranian crude-oil sales contract_- 147 Socony-Anglo-Iranian first purchase agreement---------- 152 Socony-Anglo-Iranian second purchase agreement -------- 152 Middle East Pipelines, Ltd___________________________ 154 Supplementary agreements--------------------------- 156 Postponement of the construction of the Mediterranean pipeline.------------------------------------------ 158 Summary----------------------------------------------- 160 VII. Joint control through purchase and sale of oil in Venezuela: Introduction-------------------------------------------- 163 Background of the agreements: Identification list of comppanies________________________ 164 Mene Grande Oil Co. (TV. eneg)------------------------ 164 Standard Oil Co. of Venezuela (SOV), Lago Petroleum Co. (Lago), and Creole Petroleum Co. (Creole)--------- 165 Venezuelan Oil Concessions, Ltd., Caribbean Petroleum Co., and Colon Development Co., Ltd. (Shell) --------- 166 The International Petroleum Co. (International) _ _ _ _ _ _ _ _ - 166 The N. V. Nederlandsche Olie Maatchappij (NOM) ----- 166 The Venezuelan petroleum industry in 1937_____________ 166 Western Venezuela______________________________ 167 Eastern Venezuela------------------------------- 168 Markets for Venezuelan oil in 1937________________ 169 Sale of oil and related agreements__________________________ 170 The joint enterprise__________________________________ 171 The Meneg-SOV agreement of December 15, 1937__ 171 "Pooled concessions"________________________ 171 Joint management of the "pooled concessions"_ _ 172 The Meneg-International (principal) agreement_-__ 173 Sale of oil----------------------------.------ 173 Sale of physical assets________________________ 174 The surrender of management prerogatives----- 174 The quid pro quo--------------------------- 1 76 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 Approved For Release 2010/04/14: CIA-RDP57-00384R000700130001-2 X CONTENTS Chapter, VII. Joint c Sal ntrol through purchase and sale of oil in Venezuela-Con. of oil and related agreements-Continued The Joint enterprise-Continued The International-NOM main agreement----------- Page 178 Participation in the joint en