How the US Armed Iraq - In the Loop: Poppy's Secret Mission (Waas & Unger)

[Octafish]

The facts are clear: The Republicans have fostered, patronized and done big business with terrorists for a long time. They've also lied about it to the American people.



One of their more infamous creations was the late Mr. Saddam Hussein.



In happier days, Special U.S. Envoy Donald Rumsfeld shakes hands with President Saddam Hussein in December 1983,
in preparation for removing Iraq from the list of "Terrorist Nations" for business -- er, strategic reasons.

Annals of Government - (How the US Armed Iraq)

In the Loop: Bush's Secret Mission

By Murray Waas and Craig Unger
The New Yorker Magazine - Originally published November 2, 1992
Posted to the web November 14, 2002

Introduction

This article, originally published in New Yorker Magazine, provides a clear picture of the direct involvement of the United States in arming Iraq, providing Saddam Hussein with technology, weapons, intelligence and funding - even in contravention of American law - enabling Iraq to amass the nuclear, biological, and chemical weapons that threaten the world. While the US does not openly acknowledge its role in arming Iraq, it now prepares to go to war against a monster of its own creation...

Since this article provides an excellent in-depth analysis of the US's dysfunctional Middle East policy dating back to the administrations of Presidents Reagan and Bush, it also provides the best perspective from which to view the Pollard case. As long as the US acknowledges no responsibility for its role in arming Iraq, Jonathan Pollard will continue to be buried alive in prison by successive American administrations fearing exposure and embarrassment.

***

In late July, 1986, William J. Casey, then the Director of Central Intelligence, sat down with George Bush, then the Vice-President of the United States, in an out-of-the-way study that Casey maintained on the third floor of the old Executive Office Building, the rococo structure adjoining the White House. Casey had something he wanted Bush to do.

For many years, both Bush and Casey had moved easily in the worlds of foreign policy and Republican politics, and Bush had once held Casey's job. But their relationship was never entirely comfortable. Casey, gruff and perpetually disheveled, was the product of public and parochial schools in Queens and on Long Island - his father was a Tammany Hall pension bureaucrat - and of Fordham. Bush, elaborately friendly in manner, was the offspring of Connecticut gentry. Like his father, an investment banker who served in the Senate, Bush attended Yale and was tapped for Skull and Bones. Casey made millions on his own as a stock speculator; Bush, with family help, grew moderately prosperous in the oil business before his political rise in Houston. Both men held high posts under Richard Nixon, but Nixon himself treated Casey as an equal and Bush condescendingly. It was under Gerald Ford that Bush was appointed to the job Casey now held.

The two men were different in more than background. Casey was part of the rising conservative movement, the historic antagonist of Bush and his ancestors within the Republican Party. In the Cold War, Casey believed not in containment but in what in the late forties and early fifties had been called rollback. He saw every stirring in every corner of the world through an unchanging ideological prism. Bush, by contrast, was a consummate pragmatist. As Casey knew, Bush was capable of rapidly adopting new positions if expediency or advancement seemed to demand it. He had done so on the issue of recognizing China under Nixon, and he had done so on abortion and on economic policy when he became Ronald Reagan's running mate. According to someone who knew both men, Casey had originally distrusted Bush's lack of conviction. Lately, however, he had begun to see Bush's pragmatism in a new light. Whatever vision the Vice-President might lack, he was a man of immense personal discipline, and he understood accommodation as a way to achieve goals. Moreover, during his service as permanent representative to the United Nations, as chief of the United States liaison office in China, and as director of the C.I.A., he had mastered the arts of compartmentalization and secrecy. "Casey knew there was nobody in government who could keep a secret better," a former high-level C.I.A. official who worked with Casey has told us. "He knew that Bush was someone who could keep his confidence and be trusted. Bush had the same capacity as Casey to receive a briefing and give no hint that he was in the know."

Now, in 1986, Casey, seventy-three years old and suffering from prostate cancer, said he needed Bush to run a covert errand. Iran was proving recalcitrant in secret negotiations to exchange arms for hostages who were being held in Beirut by terrorists with links to Iran, so Casey had dreamed up a scheme for forcing Iran's hand. It requires someone of authority to convey a message to Iran's enemy Saddam Hussein, the President of Iraq, indirectly and without leaving fingerprints. Vice-President Bush was the ideal courier. He was about to visit the capitals of countries in the Middle East in order to "advance the peace process" between Israelis and Arabs, as he told the New York Times. But if he accepted Casey's assignment he would also be there to advance the war process; that is, to heat up the war between Iran and Iraq, with an incendiary message from Washington to Baghdad - escalate the air war and escalate the bombing deep inside Iranian territory.

Casey's reasoning was that if Saddam Hussein could be induced to order his fastidiously cautious Air Force to attack Iran in strength, Iran would be forced to turn anew to the United States for missiles and other weapons of air defense. The United States would then use its enhanced leverage to get better terms from the Iranians for the release of the hostages. (Casey may have been particularly concerned about the plight of one of the hostages, the Lebanon C.I.A. station chief William A. Buckley.) And for Casey there was another enticement as well, according to two Reagan Administration officials whom he frequently confided in; by bringing off this scheme, he would be manipulating two rival policy factions in the Administration.

CONTINUED...

http://www.jonathanpollard.org/2002/111402.htm

The article is a must-read for those interested in knowing how the latest Monster got made.



"Out of the loop," indeed.

[Erika]

1. Love Cheney handing a gold pistol to Saddam n/t

[Octafish]

2. Halliburton and Iraq

Thank you for the reminder, Erika!



The Wizard of Halliburton turned a trick or two:

"What Goes Around Comes Around"

A Tragedy and a Failure That Has Stimulated Terrorism

By WILLIAM LOREN KATZ
CounterPunch October 19, 2004

It will be 18 months ago this election eve, since President Bush on May 1, 2003, donned a flight jacket, landed on the carrier Abraham Lincoln and before a "Mission Accomplished" banner announced the end of "major combat" in Iraq. He proudly said: "The liberation of Iraq is a crucial advance in the campaign against terror. We have removed an ally of Al Qaeda and cut off a source of terrorist funding." Only 114 US service people had died in what an administration US official called "a slam-dunk" war.

As Bush spoke gunfire ominously sounded in the streets of Iraq, and since the news was bad. US teams searched in vain for weapons of mass destruction and ties to Al Qaeda. The CIA's expert, Ahmed Chelabi, promised our troops would be greeted with flowers, but instead they became targets. Misrepresentations, miscalculations and rising casualties made members of the Coalition of the Willing more willing to head home.

As resistance stiffened that July, less the three months after "Mission Accomplished," US General Arbizaid, said he faced "what I would describe as a classical guerrilla-type campaign against us." Pentagon experts blamed the violence on Al Qaeda, Saddam loyalists, and foreigners, but it was growing wider and deeper.

The administration remained confident. That September the President said: "We have carried the fight to the enemy . . . so that we do not meet him again on our own streets." In December, after Saddam Hussein was pulled from a hole in the desert, victory was again proclaimed. But members of Iraq's diverse religious groups, increasingly found a common home in the insurgency.

Several weeks ago President Bush told a TV newsman he would do it all over again -- the flight jacket, the carrier, the victory speech. After all, he insisted, Hussein is in prison, the government is preparing for elections, democracy is trumping terrorism and he has Hussein's pistol as a trophy.

SNIP...

For some Iraq has been a bonanza. Today Halliburton has $18 billion in contracts for Iraq, an 80% increase over the previous March; Bechtel holds $3 billion in contracts; Lockheed Martin's shares have tripled between 2002 and 2004; and Chevron's Iraq oil contracts have soared 90% in the last year. Former US administrator for Iraq Paul Bremer ruled US business profits do not have to be invested in Iraq or its recovery, so these corporations increasingly donate to the party that rewards them.

CONTINUED...

http://www.counterpunch.org/katz10192004.html

Lots more up-to-date Halliburton money-makin' stuff here:

http://www.halliburtonwatch.org/

Perhaps we will see Justice served. First, we need a serious investigation by Congress. That IS their job, but we may need to be called for their reminding. Thanks for giving a damn, Erika!

[Lars39]

3. Timely.

Thanks,Octafish!

[Octafish]

4. GOP Who's Who Made Big Bucks Off Arming Saddam (Congressional Record)

Remember how U.S. Rep. Henry Gonzalez, the late, great Democrat from Texas, stood up to Poppy when it came to Iraqgate?

From the Congressional Record (no copyright restrictions -- public property for fair use):

KISSINGER ASSOCIATES, SCOWCROFT, EAGLEBURGER, STOGA, IRAQ, AND BNL

Henry B. Gonzalez, (TX-20)
(House of Representatives - April 28, 1992)

(Page: H2694)
The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Texas is recognized for 60 minutes.

Mr. GONZALEZ. Mr. Speaker, today I will talk about Henry Kissinger, his consulting firm Kissinger Associates, two former Kissinger Associates directors, Lawrence Eagleburger and Brent Scowcroft, and the chief economist at Kissinger Associates, Alan Stoga.

I will explore their links to Banca Nazionale del Lavoro and Iraq, and the Bush administration's handling of the BNL scandal. But first, I will provide some background information on the BNL scandal.


BACKGROUND ON BNL SCANDAL

BNL is one of the largest banks in Italy with assets over $100 billion. At the time the BNL scandal was disclosed in August 1989, BNL was 98 percent owned by the Italian Government. BNL has operations around the world including U.S. branches in Chicago, Los Angeles, Miami, Atlanta, and its U.S. headquarters in New York.

Several former employees of the Atlanta branch of BNL conspired to provide the Government of Iraq with over $4 billion in unreported loans between 1985 and 1990. They accomplished this massive fraud by keeping a secret set of accounting records that concealed the over $4 billion in loans to Iraq.

These secret books were presumably not furnished to BNL's management in Rome or to the bank regulatory agencies responsible for regulating BNL's operations in the United States. To date, several of the former employees have pleaded guilty to the conspiracy and signing false financial statements. The former manager of BNL, Chris Drogoul, goes to trial on June 2. He claims that the BNL management in Rome was aware of the loans to Iraq and the United States and Italian Governments should have been aware of the loans.

The $4 billion plus in BNL loans to Iraq between 1985 and 1990 were crucial to Iraqi efforts to feed its people and to build weapons of mass destruction. In addition, the BNL loans were crucial to Reagan and Bush administration efforts to assist Saddam Hussein.

The loans to Iraq were split just about evenly between agricultural and industrial loans. Iraq used a little over $2 billion to purchase agricultural products and to pay for the shipping charges associated with the delivery of those products. Well over $800 million of agriculture-related loans were guaranteed by the U.S. Department of Agriculture's Commodity Credit Corporation.

BNL was the largest participant in the Commodity Credit Corporation program that Iraq used to purchase about $5 billion in United States agricultural commodities between 1983 and 1990. Had the USDA ever inspected the publicly available financial statements of BNL, they would have most likely uncovered the scandal years earlier.

The remaining $2 billion plus in BNL loans to Iraq went to Iraqi Government entities involved in running a secret Iraqi military technology procurement network. The procurement network, which operated through front companies situated in Europe and the United States, used the BNL loans to supply Iraqi missile, chemical, biological and nuclear weapons programs with industrial goods such as computer controlled machine tools, computers, scientific instruments, special alloy steel and aluminum, chemicals, and other industrial goods.

A number of the procurement network's imports from the United States were guaranteed by the Export-Import Bank. In fact, BNL was also a major participant in the Export-Import Bank program for Iraq. In total, the Eximbank program helped to finance the sale of over $300 million in industrial goods to various Iraqi Government entities.

It is truly amazing that the BNL scandal went on as long as it did. Various agencies within our Government knew of BNL's role in bankrolling Iraq--yet they supposedly did not know that the loans were unauthorized or not properly reported. How is this possible? The committee is still investigating the extent to which the U.S. Government had knowledge of the BNL scandal.

Several of BNL's high level friends in the United States should have been aware of the BNL loans to Iraq. The high level patrons that I am referring to are Henry Kissinger, and his Kissinger Associates compadres, Brent Scowcroft and Lawrence Eagleburger.

Several Kissinger Associates clients had extensive dealings with Iraq including Volvo, Midland Bank, Chase Manhattan Bank, Fiat, and Asea Braun Boveri and those same companies also were the beneficiaries of BNL loans to Iraq or were involved in some way with BNL-Atlanta.

Kissinger, Scowcroft, and Eagleburger maintain that they were unaware of the BNL loans to Iraq. I offer no definitive proof that they were aware of the BNL loans, but I will explore in more detail their interlocking relationships with BNL and Iraq.

In addition, I will reveal that both Mr. Eagleburger and Mr. Scowcroft played a key role in the Bush administration's handling of the BNL scandal, even though BNL was a paying client of Kissinger Associates just months prior to the BNL scandal becoming public.


(Page: H2695)

HENRY A. KISSINGER, BNL, AND IRAQ

Henry Kissinger is one of the best known and most powerful Presidential advisers of the post-World-War II era. He began his political career in 1956 as a consultant on military affairs. He has also advised many executive-branch organizations including the Joint Chiefs of Staff, the National Security Council, and the Department of State.

In 1969, he became President Nixon's National Security Adviser, and in 1973 Nixon named him Secretary of State. He held that post until 1977. In 1989, Mr. Kissinger was appointed as a member of the President's Foreign Intelligence Advisory Board . Members in this elite club are permitted access to highly classified information and members actually advise the President on intelligence issues.

Today, Mr. Kissinger is active as a foreign policy analyst and consultant through the firm that bears his name, Kissinger Associates, Inc. He founded the firm in 1982, and he has offices in New York and Washington. Kissinger Associates analyzes political risk and international economic trends to help clients make business decisions about operations in a foreign country.


KISSINGER DELIBERATELY MISLEADS PUBLIC

Until recently, Mr. Kissinger was a member of the BNL's international advisory board and during the height of the BNL-Atlanta scandal BNL was a paying client of Kissinger Associates.

While Henry Kissinger was a paid member of the BNL's advisory board for international policy between 1985 and June 1991, he received at least $10,000 for attending each meeting of the BNL advisory board. Mr. Kissinger met each year with the president of BNL when the latter visited the United States to attend the annual IMF conference in Washington, DC.

Other BNL advisory board members included David Rockefeller, the chairman of the Rockefeller Group and a director of Chase Manhattan Bank, Pierre Trudeau, the former Prime Minister of Canada, Lord Thornycroft, the former British Minister of Defense, and other politically well-connected international notables.

After my April 25, 1991, floor statement on Mr. Kissinger, he told the Financial Times newspaper that he had resigned from the BNL advisory board a week before the BNL indictment in February 1991 because `he did not want to answer questions about such incidents.'

Two weeks ago, the prominent TV show, `60 Minutes,' revealed that Kissinger had not resigned from the BNL advisory board in February 1991, as he had told the Financial Times. In fact, `60 Minutes' reported that Mr. Kissinger served on BNL's advisory board until his contract expired in the summer of 1991, more than 4 months after the date he had previously reported.

Mr. Kissinger was not the only Kissinger Associates employee that dealt with BNL. Mr. Brent Scowcroft, the vice chairman and Mr. Lawrence Eagleburger, the president of Kissinger Associates also had relationships with BNL.


IMPORTANCE OF THE BNL SCANDAL

Before detailing the relationship between BNL and Mr. Scowcroft and Mr. Eagleburger and the role they played in the handling of the BNL scandal, I will provide some background in order to put their actions into perspective.

As I have show in previous floor statements, the BNL scandal was closely linked to the decline of the United States-Iraq relations. I have introduced numerous documents showing that the CCC program for Iraq was the cornerstone of United States-Iraq relations. In turn, BNL was the largest participant in the CCC program for Iraq.

When the BNL criminal investigation in Atlanta uncovered significant fraud and abuse in the CCC program for Iraq, it jeopardized the continuation of the CCC program and the cornerstone of United States-Iraq relations began to crack. The BNL investigation also revealed that high-level Iraqi Government officials were involved in the scandal, including the second most powerful man in Iraq, Saddam Hussein's son-in-law, Hussain Kamil.

To show the link between the BNL scandal and the CCC program, consider an October 13, 1989, State Department memo that states:


{Page: H2696}

The unfolding BNL scandal is directly involved with the Iraqi CCC program and cannot be separated from it.

To illustrate of the serious problems uncovered by the BNL investigation and the scandal's potential influence on the CCC program for Iraq is contained in an October 1989 State Department memo which states:

There are currently 10 separate investigations of BNL Atlanta branch activity to Iraq. It now appears that at a minimum, elements of the Government of Iraq knew of the illegal dealings of the BNL, but found it convenient to continue using its good offices. Indications are that in addition to violating U.S. banking laws, the BNL's activities with Iraq may have led to diversion of CCC guaranteed funds from commodity programs into military sales. * * * The U.S. Department of Agriculture expectations are that the investigation could blow the roof off the CCC. If smoke indicates fire, we may be facing a four alarm blaze in the near future. * * * there were 19 investigations of CCC this year (1989) and the integrity of the program is now in question.

The importance of the BNL scandal was not lost on Mr. Scowcroft or Mr. Eagleburger. I will now provide some details on their roles in handling the BNL scandal.


BRENT SCOWCROFT, BNL, AND IRAQ

One of the most prominent of the Kissinger Associates alumni is Brent Scowcroft, President Bush's current National Security Adviser and head of the NSC staff. Early in his military career,

Scowcroft served 1 year as the air attache at the United States Embassy in Belgrade, Yugoslavia. In total, Mr. Scowcroft has held various positions in six administrations.

After earning a Ph.D. and working in academia from 1962 to 1968, he held a succession of national security posts in the Department of Defense. In 1971, President Nixon appointed Scowcroft military aide to the President, and in 1973 Kissinger chose him to be Deputy Assistant to the President for National Security Affairs.

Scowcroft often took charge of the National Security Council while Kissinger was fulfilling his duties as Secretary of State, and in 1975 he succeeded Kissinger as National Security Adviser to President Ford. Although he resigned the position during the Carter administration, Scowcroft stayed active as a member of the President's general advisory committee on arms control.

In 1982, Scowcroft joined Kissinger in setting up Kissinger Associates. Scowcroft served as vice chairman and head of Kissinger Associate's Washington, DC, office until becoming the head of the National Security Council under President Bush in January 1989.


WHITE HOUSE AND SCOWCROFT-LED NSC ROLE IN BNL HANDLING

I will now show that President Bush's top advisers at the White House were directly involved in the handling of the BNL scandal. They intervened in late 1989 to make sure that Iraq received a $1 billion allocation of CCC credits for fiscal year 1990 despite the findings of the BNL investigators in Atlanta.

The former Deputy Assistant to the President, and Director of Cabinet Affairs, Mr. Steve Danzansky was one of President Bush's staff assigned responsibility for overseeing the late 1989 decision to provide Iraq with $1 billion in CCC credits. Mr. Danzansky received regular updates on the BNL scandal as well as progress reports on the USDA's efforts to win approval for the CCC program for Iraq.

An October 30, 1989, USDA memo on the CCC program and the BNL scandal that was sent to Mr. Danzansky states:

`Please let me know if you * * * have any questions on this, or if I can provide further information on the situation with Banca Nazionale del Lavoro.'

But Mr. Danzansky's role went beyond monitoring the BNL scandal and the decision to grant Iraq additional CCC credits. A November 7, 1989, USDA General Counsel memo to Mr. Danzansky regarding the decision to grant the $1 billion CCC program for Iraq states:

Steve, attached are possible materials for circulation by Treasury for tomorrow's NAC meeting. Thanks for your help on all this and please let me know if there are any additional materials I should prepare.

That comment shows that the USDA staff was taking orders from Mr. Danzansky and that Mr. Danzansky was assisting the USDA in winning approval for the fiscal year 1990 CCC program for Iraq. In addition, Mr. Danzansky personally attended the November 1989 NAC meeting that made the decision on the CCC program.

Several Administration officials have told the Banking Committee that this was the first time that a White House official sat in on a NAC decision to grant credits to a foreign country. That meeting also marked the first time in the history that the minutes of a NAC meeting were classified so as to restrict access to the public, and the Congress.

There are other CCC/BNL-related documents with Mr. Danzansky's name on them--but to truly understand their importance one must consider Mr. Danzansky's position. Mr. Danzansky was the Director of Cabinet Affairs--in other words he had direct access to the President and the various Cabinet members involved in making decisions on the CCC program for Iraq and on the handling of the BNL scandal.

Given Mr. Danzansky's role in the CCC decision and his job as adviser to President Bush and Director of Cabinet Affairs, it is clear that President Bush was directly involved in the decision to provide Iraq with a $1 billion in CCC credits just months before the invasion of Kuwait.


MR. SCOWCROFT, BNL, AND THE CCC

While at Kissinger Associates, Mr. Scowcroft worked on the BNL account and met on numerous occasions with the BNL management. On three occasions between 1986 and 1989, Mr. Scowcroft briefed the BNL board on international political and economic developments. In addition, when the President of BNL traveled to the United States to attend the annual IMF conference, he met with Kissinger and Scowcroft in New York.

Just months after resigning from Kissinger Associates to join the Bush administration, Mr. Scowcroft was heavily involved in the handling of the BNL scandal including winning approval of the $1 billion CCC program for Iraq in late 1989. Mr. Scowcroft was also directly involved in trying to win the release of the second $500 million CCC installment for Iraq in March 1990.


NSC STAFF HEAVILY INVOLVED IN CCC DECISION

Under Mr. Scowcroft's direction, the NSC staff was heavily involved in winning approval of the $1 billion CCC program for Iraq in late 1989 despite the implications of the BNL scandal. The NSC staff received regular briefings and memorandums from the USDA regarding the decision to grant Iraq additional credits.

The NSC was also directly involved in the decision to grant the CCC credits to Iraq. On April 2, 1990, USDA memo states:

During the fall of 1989, there was intense debate among the agencies regarding approval of Iraq's request for an FY 1990 CCC allocation of $1 billion. The State Department and National Security Council supported a decision favorable to Iraq.

The NSC did not limit its activities to supporting the 1989 decision to grant credit to Iraq. The NSC was also directly involved in the USDA investigation of the BNL scandal.


NSC AND USDA STUDY OF BNL

In a highly unusual maneuver, the NSC had responsibility for reviewing and approving the release of the USDA administrative review of the BNL scandal and CCC program for Iraq in May 1990. The NSC staff even went as far as approving the date of the release of the USDA study.

Regarding the release of the USDA study in May 1990, Ms. Sandra Charles, the Director for Near East and South Asian Affairs at the NSC, sent a fax to the USDA's Richard Crowder, the man technically responsible for the CCC program for Iraq. Ms. Charles' handwritten notes on the memo state: `Dick, with this press release the NSC has no objection to your releasing the report. Suggest you coordinate with State .'

The NSC's role in the USDA administrative review raises serious questions because the USDA review was an almost complete whitewash of the problems found during the BNL investigation. First, the scope of the USDA administrative review was severely restricted in order to downplay the importance of the BNL scandal and problems in the CCC program for Iraq.

For example, the press release and executive summary accompanying the report give the impression that the USDA conducted an exhaustive review of the CCC program for Iraq. In fact, the vast majority of the USDA study is based on a review of the records of a single firm involved in the BNL scandal.

The most glaring example of the whitewash is related to the issue of whether or not CCC-guaranteed agricultural commodities destined for Iraq were diverted to pay for weapons. The conclusion in the USDA report is not even supported by the facts as listed in the report. The summary of the USDA report states:


(Page: H2697)

The USDA administrative review uncovered no evidence to suggest that there has been diversion of commodities sold to Iraq. It appears, based on a review of sample records, that Iraq maintains records to establish proof of arrival for its CCC purchases.

In fact, a closer look at the USDA report shows that USDA investigators did not obtain records to verify that United States commodities had actually arrived in Iraq. Compare the findings of the report to an October 13, 1989, USDA memo which states.

Although additional research needs to be done, it appears more and more likely that CCC guaranteed funds and or commodities may have been diverted from Iraq to third parties in exchange for military hardware. Where documents indicate shipments arrived in Baghdad, the timing appears improbable, shipments arrived in Baghdad prior to arriving at interim ports. McElvain and the USDA IG are concerned that commodities were bartered in Jordan and Turkey for military hardware.

Ultimately, the USDA investigators, who had numerous contacts with the NS, took the word of the Iraqi Government that the CCC-guaranteed commodities had arrived in Iraq. In effect, the USDA report is very misleading as to the issue of whether or not CCC-guaranteed commodities were diverted--they certainly found no concrete evidence to indicate the goods actually arrived in Iraq.

Could it be that the NSC's involvement in the USDA study of BNL was meant to cover up an awareness that CCC-guaranteed commodities were being diverted to pay for Iraq weapons purchases? After all, the USDA study was deceiving as to the issue of diversion. We know that the administration conducted covert operations to assist Iraq. We also know that various memos indicate that diversion was a real possibility. And finally, the Iran-Contra affair provided proof positive that the NSC thought of itself as above the law.

Taken together, these factors raise serious questions about why the NSC was involved in the BNL investigation and whether or not they were aware of the diversion of U.S. commodities. These questions take on special importance in light of NSC Director Scowcroft's long affiliations with BNL.


SCOWCROFT GETS IN THE ACT

Not only was the NSC staff involved in the BNL/CCC investigation under Mr. Scowcroft's direction, Mr. Scowcroft himself pushed for the release of the second $500 million installment of CCC credits for Iraq that were delayed because of the BNL scandal.

A March 5, 1990, State Department memo related to the release of the second $500 million CCC installment for Iraq states: `National Security Council staff contacted the USDA March 2 to inquire about the delay after the Iraqi Ambassador complained to General Scowcroft.'


NSC AND WHITE HOUSE INVOLVED IN THWARTING INVESTIGATION OF IRAQIS?

I revealed in a March 30 floor statement that the United States attorney in Atlanta wanted to investigate the various Iraqis involved in the BNL scandal. I also revealed that the United States attorney was never allowed to interview the Iraqis because of the potential negative effect such an investigation could have on United States-Iraq relations.

Instead, the State Department decided that the United States attorney in Atlanta would have to write letters to the various Iraqis involved in the BNL fraud and ask them written question about their criminal activities. The committee has documents showing that the NSC and White House both received memos related to the pen-pal investigative strategy and the committee is continuing to probe their role in developing that strategy.

Mr. Scowcroft was not the only Kissinger Associates client involved in handling the BNL scandal--the Deputy Secretary of State, Lawrence Eagleburger, also played a key role.


EAGLEBURGER, BNL, AND IRAQ

Lawrence Eagleburger, Deputy Secretary of State, has held many positions of international influence in both the public and private sectors. Eagleburger started his political career in 1957 as a Foreign Service officer. In this capacity, he represented the United States in Honduras for 2 years, and in Yugoslavia for 4 years.

When, in 1969, Henry Kissinger became Nixon's national security adviser, Mr. Eagleburger served as his executive assistant. After working as a political adviser to NATO in Belgium, and as Deputy Assistant Secretary in the Department of Defense, Eagleburger rejoined Kissinger at the State Department, again as his executive assistant in 1973.

Eagleburger was appointed Ambassador to Yugoslavia during the Carter administration and served in that capacity from 1977 to 1981. Under President Reagan, Eagleburger became Assistant Secretary of State for European Affairs, and held this position from 1981 to 1982. Subsequently, he served for 2 years as Deputy Undersecretary for Political Affairs.

Before assuming his current position as Deputy Secretary of State in 1989, Mr. Eagleburger, like Mr. Scowcroft, worked for Kissenger Associates, Inc. In fact, during this tenure, Mr. Eagleburger was the president of Kissinger Associates.

BNL was a client of Kissinger Associates during Mr. Eagleburger's tenure. Mr. Kissinger has stated that Mr. Eagleburger did not handle the BNL account at Kissinger Associates. Renato Guadagnini, the former head of BNL's operations in the United States told committee investigators recently that Mr. Eagleburger was at a meeting between the BNL managers and Kissinger Associates in New York in 1987 or 1988.

While at the State Department, Mr. Eagleburger was fully aware of the link between BNL and the CCC program for Iraq and the importance of the BNL scandal. A State Department memo dated October 13, 1989, states: `The unfolding BNL scandal is directly involved with the Iraqi CCC program and cannot be separated from it.'

Mr. Eagleburger's role in promoting United States-Iraq relations spans both his commissions at the State Department. During the early 1980's Mr. Eagleburger wrote letters promoting the use of the CCC and Eximbank as tools to provide United States financial assistance to Iraq. Starting in 1989 Deputy Secretary of State Eagleburger played a key role in winning approval of the $1 billion CCC program for Iraq just months prior to the Iraqi invasion of Kuwait.


WINNING APPROVAL OF THE CCC PROGRAM FOR IRAQ

In order to win approval of the $1 billion CCC program for Iraq for fiscal year 1990, Secretary Baker wrote a letter to the Secretary of Agriculture, Clayton Yeutter, and then called him personally to express his conviction that Iraq should be given the benefit of the doubt and granted the full $1 billion CCC program for fiscal year 1990. The talking points for Mr. Baker's call to Mr. Yeutter state:

On foreign policy grounds, we support a program of up to $1 billion, released in tranches, with periodic compliance reviews. With safeguards, I hope we can get this important program back on track quickly.

Convincing the Department of Agriculture to support the allocation of the full $1 billion to Iraq was the least of the State Department's worries. The largest barrier was convincing the OMB and Treasury Department to drop their opposition to the $1 billion program for Iraq. This assignment was left to Deputy Secretary of State, Lawrence Eagleburger.

The Treasury Department and OMB were opposed to the fiscal year 1990 CCC program for Iraq because of Iraq's precarious financial condition and the BNL scandal. The Treasury Department actually voted against the fiscal year 1989 program for Iraq because of creditworthiness concerns, but this did not stop Mr. Eagleburger.

Mr. Eagleburger sent letters to the highest levels of the OMB and Treasury to win approval for the fiscal year 1990 CCC program. The first was a letter dated November 8, 1990, from Mr. Eagleburger to the Deputy Treasury Secretary, John Robson, which states:


(Page: H2698)

Further to our discussion, on foreign policy grounds we support the Department of Agriculture's proposal for a full billion-dollar program of CCC export credit guarantees in FY 1990 with adequate safeguards, for Iraq. * * * the CCC program is important to our efforts to improve and expand our relations with Iraq, as ordered by the President in NSC-26. With regard to the real concerns which arise from the investigation into the operations of the Atlanta branch of the Banca Nazionale del Lavoro, we have received from the Government of Iraq a pledge of cooperation.

He sent a similar letter to the OMB. Mr. Eagleburger's efforts were crucial to neutralizing OMB and Treasury opposition to the CCC program. After much lobbying and back scratching, in November 1989 the CCC program for Iraq was approved, but Mr. Eagleburger's involvement with the CCC program for Iraq and the BNL scandal did not stop.

The committee has documents showing that Mr. Eagleburger was involved in other aspects of the BNL scandal. For instance, Mr. Eagleburger provided the United States Embassy in Rome with guidance on how to handle press calls related to the BNL scandal. He also received two cables from the United States Embassy in Italy that contained interesting revelations.

The first indicated that top BNL managers approached the U.S. Ambassador to ask for damage control related to the handling of the BNL scandal in the United States. The second involved a meeting at the U.S. Embassy at which a BNL official voiced his displeasure at rumors that the Justice Department was about to indict BNL.

As a sidenote related to the Italians' request for damage control, I would like to say that United States law enforcement officials did not conduct a serious investigation of the role BNL's Rome management played in the over $4 billion in loans to Iraq. I wonder if BNL's friends in the Bush administration had a role in the decision to exonerate BNL's management in Rome?

The most notorious Eagleburger involvement in the BNL prosecution was related to the investigation by the United States attorney in Atlanta of Iraqis involved in the BNL scandal. As I stated above and in previous floor statements sometime between the BNL raid in August 1989 and early 1990, it was decided that the Atlanta investigators would not be permitted to interview the Iraqis involved in the BNL scandal.

Instead, it was decided that the Atlanta investigators would be permitted to submit written questions to the State Department which in turn would send the questions to Iraq. This pen pal approach to the criminal investigation effectively thwarted the investigation of the Iraqis responsible for the BNL scandal and was used as an excuse to delay the rest of the BNL indictment until it was more politically correct to reveal Iraqi involvement in the scandal.

To show the State Department involvement in the BNL case, consider a March 20, 1992, New York Times article containing excerpts of an interview with Robert L. Barr, the former U.S. attorney in Atlanta who was in charge of the BNL case until April 1990. Mr. Barr acknowledged that in the BNL case considerations of foreign policy had become intertwined with those of law enforcement and that the State Department was involved in thwarting the BNL investigation. The Times quoted Mr. Barr as saying: `The State Department had become involved early on and that the case became complex both legally and because of foreign policy concerns.'

To illustrate Mr. Eagleburger's role in the State Department's involvement in the pen-pal investigation of the Iraqis involved in the BNL scandal, consider a February 9, 1990, cable from Mr. Eagleburger to April Glaspie in Baghdad. The cable provides a status report on the BNL investigation and the CCC program from Iraq. In the cable, Mr. Eagleburger refers to State Department's role in handling the questions for the Iraqis involved in the BNL scandal. Mr. Eagleburger states:

* * * Legal has received a memorandum from the USDA General Counsel recommending a demarche to the Iraqis to request assurances that they will assist in the BNL investigation. If the Department of Justice (DOJ) or the Atlanta prosecutor have any specific questions they want to put to the Iraqis, we (the State Department) should convey these * * *.

Apparently Mr. Eagleburger did not want the USDA or others back in Washington to get wind of the State Department's strategy. Later in that same memo to Ambassador Glaspie, Mr. Eagleburger states:

We have no problem with your sharing the above with the USDA attache at your discretion, but please ask that he be careful not to play it back to his colleagues here (in Washington, D.C.).

Mr. Eagleburger played a key role in winning approval of the CCC credits for Iraq and in the State Department's handling of the BNL case. Mr. Eagleburger did not recuse himself from the State Department handling of the scandal.


ALAN STOGA--KISSINGER ASSOCIATES

Another link between Kissinger Associates, BNL and Iraq is Alan Stoga. Alan Stoga is a former economist at First Chicago Bank and is currently a director of Kissinger Associates. Mr. Stoga is said to be an expert in country risk analysis and international finance. He has been interested in the Middle East for many years and has made extensive visits to the area.

Mr. Stoga worked as the chief economist of the international division at First Chicago Bank. The chairman of the First Chicago at that time was A. Robert Abboud, the chairman of the United States-Iraq Business forum and director of First City Bank, Houston, TX.

The former head of BNL's U.S. operations stated that he attended a 1987 meeting in New York with Mr. Stoga, the head of BNL's Rome headquarters, and Mr. Kissinger, Mr. Scowcroft, Mr. Eagleburger in 1987. The meeting was held to give BNL advice on doing business in several countries including India. Mr. Stoga and Mr. Scowcroft brought the BNL officers to lunch after the meeting.

Mr. Stoga was also a friend to the United States-Iraq Business Forum. He is a friend of Mr. Robert Abboud, the former chairman of the Business Forum. On November 14, 1989 Mr. Stoga was a panelist at a Business Forum function titled, `Third Annual Symposium on U.S. Commercial Economic and Strategic Interests in Iraq. Mr. Stoga gave advice on the economic aspects of financing trade and investment with Iraq.

Just months before that meeting, in June 1989, Mr. Stoga visited Iraq with Mr. Abboud and other members of the United States-Iraq Business Forum. The Forum members met with Saddam Hussein to discuss expanding commercial relations between the United States and Iraq.

Committee investigators interviewed Mr. Stoga about his role during the June 1989 trip to Iraq. Mr. Stoga stated that he went along on the trip to get to know the country better since he had never before been to Iraq. He stated that he did not go on the trip to discuss Iraq's debt problems.

To the contrary. In a `60 Minutes' interview that aired 2 weeks ago, the president of the United States-Iraq Business Forum, Marshal Wiley, stated that Mr. Stoga was in Iraq to advise Saddam Hussein on Iraq's debt problems and the feasibility of restructuring Iraq's debts. Mr. Stoga may also have misled the public about Kissinger Associates relationship with the BCCI organization.


BCCI AFFILIATE A CLIENT OF KISSINGER ASSOCIATES
BCCI was notorious for recruiting well connected former high-level government officials around the world in order to influence government policy and to gain protection from the law. They also tried to hire Kissinger Associates in the fall of 1989, when Mr. Stoga and BCCI's representatives met several times to discuss BCCI becoming a client of Kissinger Associates.

The day after BCCI-Tampa was indicted for money laundering in October, 1988, a high-level BCCI official wrote a letter to the president of BCCI which stated:

I received a call today from Mr. Stoga, who informed me that Dr. Kissinger recommends that a public relations offensive be made by us * * * Kissinger Associates Inc. have indicated that they shall be happy to use their personal contacts with the firm and make the necessary recommendations.

In newspaper reports Mr. Stoga denied ever saying that Mr. Kissinger ever recommended a public relations offensive. He also stated that `Henry never met or talked with them .' BCCI itself may not have become a client of Kissinger Associates, but it appears that BCCI's secretly owned affiliate, the National Bank of Georgia, which was purportedly owned by Saudi front man Ghaith Pharoan, was a client of Kissinger Associates.

In a New York Times interview Mr. Stoga is quoted as stating: `We were never employed by them (BCCI) and we are not in a habit of giving free advice.'

The committee has obtained documents showing that the former president of the National Bank of Georgia, Mr. Roy Carlson, received a briefing from Mr. Kissinger. Mr. Carlson's expense report from July 1986 states, `Briefing Session Dr. Henry Kissinger.'

As Mr. Stoga stated, Kissinger Associates does not give free advice. The National Bank of Georgia therefore must have been a client of Kissinger Associates. After all, Mr. Kissinger knew Ghaith Pharoan's father, an adviser to Saudi royal family, and he knew Ghaith Pharoan for many years.

This raises the question of whether or not Mr. Eagleburger or Mr. Scowcroft worked on the National Bank of Georgia account while they were at Kissinger Associates and whether or not they played any role in the postindictment prosecution of BCCI when they were back in the Government.




CONCLUSION
BNL was a client of Mr. Scowcroft's while he was the vice-chairman of Kissinger Associates. Mr. Scowcroft regularly provided advice to BNL's management and received hefty fees in return.

Mr. Scowcroft and his staff at the National Security Council, along with the State Department, masterminded the Bush administration's handling of the BNL scandal in order to mitigate the damage it would have caused to United States-Iraq relations. In the process they trampled on United States law enforcement efforts and repeatedly misled the Congress and the American public about the United States policy toward Iraq.

BNL was not Mr. Eagleburger's client at Kissinger Associates although he did meet with BNL's management for at least one briefing. But I did show in an April 25, 1991 and February 24, 1992 floor statements that several of Mr. Eagleburger's Yugoslavian-related business ventures, the LBS Bank and the Yugo automobile, relied on BNL-Atlanta financing. Despite these ties Mr. Eagleburger did not recuse himself from the handling of the BNL case.

These revelations are not surprising--Mr. Scowcroft and Mr. Eagleburger refused to recuse themselves from the handling of the BNL scandal even though BNL was a client of Kissinger Associates just months earlier. Their actions provide a revealing example of the ethical atmosphere at the White House and the top levels of the State Department.

As for Mr. Kissinger, he misled the public about his relationship with BNL and about his firm's contact with Saddam Hussein. Mr. Stoga misled the Banking Committee about the reasons for his trip to Iraq in the summer of 1989 when he met with Saddam Hussein to discuss Iraq's debt problems.

Their ethical behavior is just as deplorable as Mr. Scowcroft's and Mr. Eagleburger's. Is anyone really surprised?

Ministers have come under obligations to great interests; and it can be presumed or alleged that their votes or speeches have been corrupt: W. Churchill.

Articles referred to follow:
DEPARTMENT OF AGRICULTURE,

Office of the General Counsel,
Washington, DC, October 30, 1989.

Hon. Stephen I. Danzansky,
Deputy Assistant to the President and Director, Office of Cabinet Affairs,
The White House, Washington, DC.

Dear Steve: Attached is a paper prepared by the Foreign Agricultural Service regarding the GSM credit guarantee program. The paper describes the process by which country credits and individual transaction guarantees are approved. It also discusses the situation with respect to the Iraqi credit.

As you know, Undersecretary Crowder is eager to resolve the new credit to be offered to Iraq quickly. Please let me know if you (or any other members of the group you assembled last week) have any questions on this, or if I can provide further information on the situation with the Banca Nazionale del Lavoro.

Best regards.

Sincerely,
Alan Charles Raul.



USDA Position on Iraq

1. BALANCING RISKS
USDA is currently evaluating its GSM-102/103 Export Credit Guarantee Programs for IRAQ for FY 1990. This evaluation involves prudent balancing of political and financial risks against marketing opportunities and benefits.

On the one hand, Iraq represents a very carefully nurtured $1 billion market for U.S. agricultural exports. Failure to reach an agreement with Iraq on a GSM program for FY 1990 risks loss of that market and a number of potential spillover effects: alienation of key sectors of U.S. agriculture who have been participating in this GSM market; negative impact on the U.S. trade balance; economic hardship in several agricultural sectors; and impairment of the carefully measured political rapprochement which the United States has been developing with one of the richest and most influential Arab States.

On the other hand, Iraq's general creditworthiness appears to have deteriorated somewhat in the past several years. Although Iraq has continued to pay its U.S. debt, it has not met its payments to some other creditor nations. In addition, Iraq has recently come under scrutiny for possible involvement in the Banco Nazionale del Lavoro (BNL) affair in Atlanta, where there has apparently been a major case of bank fraud centering on unauthorized loans to Iraq by the Atlanta branch of BNL, estimated at $1.7 billion. while the BNL investigation is in its early stages, there have been suggestions of possible impropriety with respect to BNL's GSM loan portfolio, which is approximately $750 million.

Investigators from the Office of the Inspector General have been detailed to work with the United States Attorney in the BNL investigation. In the course of its recent negotiations with Iraq, USDA learned that there were numerous allegations of possible wrongdoing, potentially involving Iraq. Attorneys from the Office of General Counsel were sent to Atlanta to discuss the matter with the assistant U.S. Attorney in charge of the case, to meet with the OIG personnel involved in the investigation, and to review available bank records. Those attorneys report that, as of the current stage of the investigation, no hard evidence has yet been uncovered which indicates misuse of the GSM program or wrongdoing by Iraq. At this stage, the allegations of impropriety appear to derive from theories of possible misuse hypothesized because of evidence of apparent wrongdoing uncovered in non-CCC loan transactions. At this juncture, however, the evidence developed in the case appears to center largely on bank fraud, although the investigation is still at an early stage.

Under the circumstances, a prudent and measured approach must be developed. At the current time, there has been no evidence developed to support allegations that Iraq has engaged in misuse of GSM programs, and so clearly discontinuation of the Iraq program would not be warranted. At the same time, when serious allegations are being made in the BNL investigation, a `business as usual' approach seems unwise. USDA believes that the prudent approach is to offer a measured program, announcing a large enough credit line to permit Iraq to continue purchases over the near term, while making every effort to assure that there have indeed been no program abuses. Associated with this, USDA will accelerate its own efforts to ensure future program integrity through improved management and regulation, including the development of a system of program compliance review.


--

DEPARTMENT OF AGRICULTURE,
Office of the General Counsel,
Washington, DC, October 31, 1989.
Facsimile Transmission for: Stephen I. Danzansky, Deputy Assistant to the President and Director, Office of Cabinet Affairs.
From: Alan Charles Raul, General Counsel.

Dear Steve: Attached is a press release issued by the Iraqi Embassy in Washington in which it indicates that `Iraq firmly abides by these agreements and is desirous to honor its part of these agreements in accordance with international laws and conventions.'

I thought you should be aware of this Iraqi assurance in connection with your review of the matter. Please call me if you have any questions.


Statement Issued by the Iraqi Embassy in Washington, D.C.
Having heard the inaccuracies appeared in some news reports on irregularities concerning Letters of Credit issued for Iraqi firms by Banca Nazionale del Lavoro (BNL)--Atlanta Branch, the Embassy of Iraq issues the following statement:

In 1982 Iraq signed agreements with Banca Nazionale del Lavoro providing Letters of Credit guarantees for the companies having contracts with Iraqi establishments. Both contracting parties worked for the proper implementation of these agreements. Iraq, on its part, honored its obligations provided for by the agreement, i.e., prompt and exact payments.

However, the Embassy feels obliged to express astonishment at these unfounded reports including the account given by BNL officials who claimed that their Atlanta branch acted in violation of their bank policy and had no authorization to sign these agreements with Iraq.

The Embassy reiterates that Iraq is not involved in any way in the so-called irregularities. The agreements between Iraq and the BNL were lawful and the facilities provided for by these agreements were used for the implementation of development projects and the import of agriculture and food products and machinary of pure civil nature under contracts with well known Italian and US firms.

The Embassy believes that these reports are untrue and entirely detrimental to the interests of Iraq and Italian and US firms.

Furthermore, any BNL reluctance to implement these agreements would cause serious damage to these firms.

In the mean time, Iraq firmly abides by these agreements and is desirous to honor its part of these agreements in accordance with international laws and conventions. Iraq also expects the other party to do so.


--
Department of Agriculture,
Washington, DC, November 7, 1989.
Memorandum for: Stephen I. Danzansky, Director, Office of Cabinet Affairs.
From: Alan Charles Raul.
Subject: Iraq.



Steve: Attached are possible materials for circulation by Treasury for tomorrow's NAC meeting.

Thanks for you help on all of this and please let me know if there are any additional materials I should prepare.


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DEPARTMENT OF AGRICULTURE,
Office of the General Counsel,
Washington, DC, May 16, 1990.
Memorandum for Richard T. McCormack, Under Secretary of State; Edward S.G. Dennis, Jr., Assistant Attorney General; Timothy Deal, Special Assistant to the President and Senior Director, International Economic Affairs National Security Council.
From: Richard T. Crowder, Under Secretary, International Affairs and Commodity Programs; Alan Charles Raul, General Counsel.
Subject: Report of Administrative Review of Iraq GSM Program.

Attached for your review and clearance is a draft report of USDA's administrative review of certain transactions in connection with the GSM program for Iraq. We intend to release this document to the House and Senate Agriculture Committees, and make it available to the public, together with an executive summary and a press release. We believe it is essential to get these facts and conclusions out to the public as soon as possible.

In essence, after interviewing Iraqi agriculture officials and certain U.S. exporters, and reviewing certain bank records, exporter records and Iraqi records, we have concluded that certain Iraq GSM transactions improperly included freight charges within the amounts that were registered with USDA. In addition, the evidence suggests that a number of exporters provided Iraq with `after sales services' in possible violation of the GSM regulations.


--

--
House of Representatives,
Washington, DC, August 1, 1991.

Dr. Henry Kissinger,
Kissinger Associates, Inc.,
New York, NY.

Dear Mr. Kissinger: The Committee on Banking, Finance and Urban Affairs is investigating $4 billion in unauthorized loans to Iraq made by the former employees of the Atlanta branch of Banca Nazionale del Lavoro (BNL). The Banking Committee would like to learn more about your personal knowledge of BNL loans to Iraq as well as that of your firm, Kissinger Associates. Accordingly, in your capacity as a former member of the BNL Consulting Board for International Policy, the Committee would appreciate your response to the following questions:

A. Related to BNL:

1. How long were you a director of BNL? In what capacity (i.e. political consultant, financial advisor, etc.) did you serve BNL?

2. Is BNL a current or former client of Kissinger Associates? If yes, during what time frame?

3. As former employees of Kissinger Associates, did Mr. Lawrence Eagleburger or Mr. Brent Scowcroft have any involvement with BNL? If yes, in what capacity?

4. Were you or any employees of Kissinger Associates aware of the unauthorized BNL-Atlanta loans to Iraq? If yes, please explain.

5. Did Kissinger Associates employee Mr. Alan Stoga, visit Iraq in 1989 as an official of Kissinger Associates? If yes, in what capacity?

B. Related to U.S.-Iraq commercial relations:

1. Did Kissinger Associates ever assist its clients with any aspect of the U.S. export control process, the Export-Import Bank, or the Commodity Credit Corporation as it applied to exports to Iraq?

2. As employees of Kissinger Associates, did Mr. Lawrence Eagleburger or Mr. Brent Scowcroft have any involvement with the export control process, the Export-Import Bank, or the Commodity Credit Corporation as it applied to commercial relations with Iraq? If yes, please explain.

3. Was the U.S.-Iraq Business Forum (previously the U.S.-Iraq Business Roundtable) ever a client of Kissinger Associates?

4. Were any members of the U.S.-Iraq Business Forum Kissinger Associates clients?

5. Is First City Bancorp., Houston, Texas, or its affiliates, a current or former client of Kissinger Associates?

6. To the best of your knowledge, have you, or has any current or former employee of Kissinger Associates ever met with Mr. Saddam Hussein or any other Iraqi government officials to discuss U.S.-Iraq commercial relations?

7. Are any of the following current or former employees of Kissinger Associates:

a. U.S.-Iraq Business Forum Chairman--Robert Abboud?

b. Amman Resources, Amman Jordan;

c. Bank of Credit and Commercial International (BCCI);

d. First American Bank of New York or its affiliates.

Thank you for time and cooperation. With best wishes.

Sincerely,

Henry B. Gonzalez,
Chairman.


--
Kissinger Associates,
New York, NY, August 30, 1991.

Mr. Henry B. Gonzalez,
Chairman, Committee on Banking, Finance and Urban Affairs, Rayburn House Office Building, Washington, DC.

Dear Mr. Chairman: Your letter of August 1 raised a number of specific questions. Before responding to those, I would like to make two general points:

First, neither I nor any of my associates had any personal knowledge of loans to Iraq made by the Banca Nazionale del Lavoro (BNL) or any of its branches or subsidiaries;

Second, neither I nor Kissinger Associates, Inc. (KAI) have ever done any business in Iraq; nor has KAI ever done any business with or on behalf of any Iraqi entity government or private.

You asked twelve questions; my responses follow:

A. Related to BNL:

1. I was never a director of BNL. From 1985 to 1991, I served as a member of the bank's International Advisory Board, along with Raymond Barre (former Prime Minister of France), David Rockefeller (Chairman, Rockefeller Group), Pierre Trudeau (former Prime Minister of Canada), Lord Thorneycroft (former British Chancellor of the Exchequer and Minister of Defense), Lord Ezra (former Chairman of the British National Coal Board), Roberto de Oliveira Campos (Brazilian Senator), Silvio De Capitani (former Swiss Parliamentarian), Hans Merkle (Managing Partner, Robert Bosch Industrietreuhand), Enrique Fuentes Quintana (former Deputy President of Spain and Minister of Economic Affairs), Jean-Pierre Amory (Chairman, Petrofina S.A.), Horst Jannott (Chairman, Munchaner Rockversicherungs-G.), Pierre Ledoux (Chairman, Banque National de Paris), William Takagaki (former Managing Director, Mitsubishi Rayon Co. Ltd.) and Ettore Lolli (Chairman, International Advisory Board, Banca Nazionale del Lavoro). The Board met once a year to discuss international economic and political developments, with each member contributing comments on current developments in his own country. It was not the function of the Board to analyze, discuss, or pass on BNL's specific business activities.

2. BNL was a general consulting client of Kissinger Associates from July 1986 to June 1988, during which time we provided the Bank's senior management with briefings on international political and economic developments. We were not involved in advising the Bank on any specific business activities and had no involvement in any BNL business with or in Iraq.

3. As Vice Chairman of Kissinger Associates, Brent Scowcroft participated in the three general consulting meetings which were held with members of the senior management of BNL between July 1986 and June 1988. These meetings dealt with international political and economic developments, not with specific business activities of the Bank. As previously reported to the Senate Foreign Relations Committee, the KAI clients with whom Lawrence Eagleburger was involved did not include BNL.

4. Neither I nor my associates had any personal knowledge of BNL's loans to Iraq, authorized or unauthorized.

5. As Managing Director of Kissinger Associates, Alan Stoga visited Iraq in 1989 at the invitation of the U.S.-Iraq Business Forum to inform himself about conditions in that country.

B. Related to U.S.-Iraq commercial relations:

1. KAI represents no clients before U.S. Government agencies nor does it lobby any branch of the U.S. Government on behalf of clients. Therefore, Kissinger Associates did not assist its clients with any aspect of the U.S. export control process, the Export-Import Bank, or the Commodity Credit Corporation with respect to Iraq or any other country.



2. As indicated above, neither Kissinger Associates nor any of its employees had any involvement with these U.S. Government agencies.

3. Neither the U.S.-Iraq Business Forum nor its predecessor organization was ever a client of Kissinger Associates.

4. I do not know which, if any, clients of Kissinger Associates were members of the U.S.-Iraq Business Forum.

5. Neither First City Bancorp nor any of its affiliates have ever been clients of Kissinger Associates.

6. As indicated, Mr. Stoga participated in the U.S.-Iraq Business Forum's trip to Baghdad in 1989 during which U.S.-Iraq commercial relations were discussed by the group with Saddam Hussein and other Iraqi officials. Additionally, Mr. Stoga and other employees of Kissinger Associates met with Iraqi diplomats on social occasions. At these meetings the Iraqis often expressed their desire for improved commercial relations with the United States. However, no specific commercial projects were ever discussed. Nor, as I mentioned above, has Kissinger Associates ever done any business in Iraq.

7. Kissinger Associates has had no relationship with A. Robert Abboud or any of the organizations you mention.

Sincerely,
Henry A. Kissinger.


--

--
U.S. Department of State,
Washington, DC, November 8, 1989.
To: The Acting Secretary.
Subject: Letter to Treasury Deputy Secretary Robson on a CCC Program for Iraq.

In your conversation earlier today, Department of the Treasury Deputy Secretary John Robson asked that you send him a letter outlining the policy reasons for which State strongly backed USDA's proposal for a full, billion-dollar program of Commodity Credit Corporation (CCC) credit guarantees, with safeguards, for Iraq. Attached is a letter for your signature that outlines those policy considerations. It essentially follows the talking points provided for your telephone conversation with Mr. Robson.

Recommendation: That you sign the attached letter to Deputy Secretary Robson.

Department of State,
Washington, DC, November 8, 1989.

The Hon. John E. Robson,
Deputy Secretary of the Treasury.

Dear John: Further to our discussion, on foreign policy grounds we support the Department of Agriculture's proposal for a full, billion-dollar program of Commodity Credit Corporation GSM-102 export credit guarantees in FY 90, with adequate safeguards, for Iraq.

In addition to the near-term benefits for agricultural sales, the CCC program is important to our efforts to improve and expand our relationship with Iraq, as ordered by the President in NSD-26. Iraq is a major power in a part of the world which is of vital importance to the United States. Our ability to influence Iraqi behavior in areas from Lebanon to the Middle East peace process to missile proliferation is enhanced by expanded trade. Also, to realize Iraq's enormous potential as a market for U.S. goods and services, we must not permit our displacement as a major trading partner.

With regard to the real concerns which arise from the investigation into the operations of the Atlanta branch of the Banco Nationale de Lavoro, we have received from the Government of Iraq a pledge of cooperation. Our intention is to hold Iraq to this commitment and to work with the Department of Agriculture to ensure that the problems with the program in the past are fully resolved in a new program. The safeguards proposed by USDA, including disbursement of the CCC guarantees in tranches, buttress the program and merit our backing.

I appreciate your support in this connection.

Sincerely,

Lawrence S. Eagleburger,
Acting Secretary.


--
Kissinger Associates,
New York, NY, October 7, 1988.

Abol Fazl Helmy,
Bank of Credit and Commerce,
New York, NY.

Dear Abol: I enjoyed lunch yesterday and, even more, your suggestion that BCCI might be interested in developing a relationship with Kissinger Associates.

As you suggested, I am enclosing a brief explanation of our firm and biographical sketches of our principals. I am not sure the former really does us justice, but I am reluctant to be more specific, at least on paper, about the kinds of consulting projects we undertake for clients. The key point, of course, is that our consulting and transaction work are rooted in the firm's understanding of geopolitics and economics: a client should not ask us how to build a polyethylene plant, but should ask about what is likely to happen in the various countries where that plant might be sited.

I agree that a next step should be for me to meet your management in London or in New York. I am not scheduled to be in London (I was there two weeks ago) the rest of this year, but might be able to arrange a detour either on November 10 or November 18 (between those days I will be in Sweden, France, and Italy). Alternatively, I could fly over for a day in early December, although for expense and convenience reasons, I would prefer to tie London into another trip. Let me know your thoughts on this.

I look forward to hearing from you soon,

Best regards,
Alan Stoga.

BANK OF CREDIT

and Commerce International,
New York, October 13, 1988.
From: Abol Fazl Helmy.
To: Mr. Swalch Naqvl.

Further to our recent conversation in London, I met with Mr. Alan Stoga who is one of the 3 partners of Kissinger Associates, Inc. Subsequently, the developments in the United States took place. Judging by the high level of adverse publicity that is being generated by the media, it is imperative that a firm response be made.

I received a call today from Mr. Stoga who informed me that Dr. Kissinger recommends that a public relations offensive be made by us and in that context has suggested using Burson-Marstellar, a highly reputable public relations firm that successfully dealt with the 1st Chicago crises last year. Kissinger Associates, Inc. have indicated that they shall be happy to use their personal contacts with the firm and make the necessary recommendations. I shall, of course, not proceed in any way without explicit instructions from you.

While I am certain, we have our fair share of advisors and consultants, I thought it prudent to pass on the information considering the importance of its source.

Best Personal Regards.


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BANK OF CREDIT
and Commerce International,
New York, October 13, 1988.
From: bol Fazl Helmy.
To: Mr. Swalch Naqvl.

I am enclosing for your attention the relevant details on Kissinger Associates, Inc. as discussed.

I shall be meeting them tomorrow (October 14, 1988) to discuss further details. I shall keep you appropriately informed.

Best Regards.


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BANK OF CREDIT
and Commerce International,
New York, October 14, 1988.
From: Abol Fazl Helmy.
To: Mr. Swalch Naqvl.

I just met with Mr. Alan Stoga, Dr. Kissinger's partner and discussed the relevant matters as per our phone conversation of yesterday.

I emphasized to Mr. Stoga that our conversation in getting our two respective organizations together have been going on for over a year and hence, have not been generated as result of the present circumstances.

I feel that a relationship could be established in the near future depending on how fast the present publicity ends.

I shall keep you duly informed of my next meeting with Dr. Kissinger himself which should be sometime next week.

Best personal regards.


--

--

BANK OF CREDIT
and Commerce International,
New York, December 19, 1988.
From: Abol Fazl Helmy.
To: Mr. Swaleh Naqvi.

I am in communication with Mr. Alan Stoga, Partner of Kissinger Associates, Inc. Their response was they are interested in principal but would like to wait a bit longer. I will be meeting Mr. Stoga in the first week of January, 1989 and will be discussing the issue further. It would be of interest for you to know that Mr. Scowcroft is now the National Security Adviser Designate in the Bush Administration and another Partner of Kissinger Associates is being tapped for Assistant Secretary of State in the Bush Administration. I shall keep you informed of my next meeting. You may agree that this association with Kissinger Associates, Inc. needs time to be cultivated. I am working in that direction.

If there are any further instructions with respect to this matter, please call prior to my January meeting.

Best Regards.


--

BANK OF CREDIT
and Commerce International,
New York, January 11, 1989.
From: Abol Fazl Helmy.
To: Mr. Swaleh Naqvi.

I had a lunch meeting with the gentleman on January 5, 1989 and a follow up telephone conversation on January 10, 1989. It was established that it is in our best interests for both parties to continue with the conversations. As such, the door for an eventual relationship remains open.

They were far more knowledgeable of the details of our situation during this meeting and made certain `unofficial' general recommendations which I shall convey to you at our next meeting. I am meeting my contacts senior partner by the end of January with a view of discussing our overall worldwide activities.

Best Regards.


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(Page: H2702)

United States-Iraq Business Forum, Third Annual Symposium on United States Commercial, Economic, and Strategic Interest in Iraq, Tuesday, November 14, 1989

TOPIC: `FINANCING TRADE AND INVESTMENT WITH IRAQ'

Preliminary Program

Introductory Remarks, Marshall W. Wiley, President, United States-Iraq Business Forum.

Greetings and Commentary, His Excellency Dr. Mohamed Sadiq Al-Mashat, Ambassador of Iraq.

Panel One--`The United States and Post-War Iraq'

Sandra Charles, National Security Council Staff, The White House.

Michael H. Van Dusen, Staff Director, Subcommittee on Europe and the Middle East, House of Representatives Committee on Foreign Affairs.

Moderator: John R. Hayes, Middle East Public Affairs, Mobil Oil Corporation (Member of the U.S.-Iraq Business Forum).

Panel Two--`Economic Aspects of Financing Trade and Investment with Iraq'

Alan J. Stoga, International Economist, Kissinger Associates.

Vahan Zanoyan, Oil Economist, Petroleum Finance Institute.

Moderator: Witold S. Sulimirski, Servus Associates.

Panel Three--`Doing Business with Iraq'

Ray L. Hunt, Chairman of the Board, Hunt Oil Company (Member of the U.S.-Iraq Business Forum).

Donald N. DeMarino, Deputy Assistant Secretary of Commerce.

Moderator: William M. Arnold, First City Bancorporation of Texas (Member of the U.S.-Iraq Business Forum).

Luncheon Working Session

Presiding: A. Robert Abboud, Chairman of the Board and CEO, First City Bancorporation of Texas (Chairman of the Board, U.S.-Iraq Business Forum).

Address: Edward Cnehm, Deputy Assistant Secretary of State for Near Eastern and South Asian Affairs--`The Future of U.S.-Iraqi Relations.'

Closing Remarks

Lucius D. Battle, President, The Middle East Institute.

PARTICIPANTS

Elias Aburdene, Fairbanks Management Corporation.

James H. Andrews, M.W. Kellogg Company.

Garabed Armenian, Westinghouse Electric Corporation.

William Arnold, First City Bancorporation, Texas.

Frederick Axelgard, Center for Strategic & Interntl. Studies.

Lucius D. Battle, Middle East Institute.

Erol Benjenk, Fentex International Corporation.

Hani N. Beyhum, Olayan Development Corporation.

Carolyn Brehm, General Motors Corporation.

Patrick A. Briggs, Bell Helicopter Textron, Inc.

David Chambers, U.S.-Iraq Business Forum.

Sandra Charles, National Security Council Staff.

Ronald C. Clegg, Bell Helicopter Textron, Inc.

George Coy, Office of Congressman Feighan.

Robert R. Copaken, Department of Energy.

Lynn Coprivira, Dantzler Lumber and Export Company.

Charles Delaplane, Department of Agriculture.

Donald N. DeMarino, Department of Commerce.

Luis Echeverria, Export-Import Bank of the U.S.

Majed Elass, ARAMCO.

Bryan Estep, Luxor California Exports.

Ghaleb O. Faidi, National U.S.-Arab Chamber of Commerce.

Benedict F. FitzGerald, BDM International.

Michael Foster, Abu Dhabi International Bank.

Jay Ghazal, Office of Senator Pell.

Edward Gnehm, Department of State.

Harry Griffith, Brown & Root.

John Haldane, U.S.-Iraq Business Forum.

Thomas Harrold, Glan McCullock Sherrill & Harrold.

John R. Hayes, Mobil Oil Corporation.

John M. Howland, American Rice, Inc.

Arthur H. Hughes, Department of State.

Ray L. Hunt, Hunt Oil Company.

Evaleen Jaager, General Motors.

Paul Jabber, Bankers Trust Company.

Les Janka, Neill and Company.

Ed Jesteadt, AT&T International.

K. Kachadurian, Ionics, Inc.

Riad Khayali, AT&T Network Systems.

James King, Glan McCullock Sherrill & Harrold.

Mary King, U.S.-Iraq Business Forum.

Michael Kostiw, Texaco, Inc.

Diane Landau, AT&T Network Systems.

Alexander Lang, AT&T International.

John Lawrence, Neill and Company.

Lloyd R. Lawrence, Jr., Bob Lawrence and Associates.

William Lehfeldt, General Electric Company.

Paul R. Lensch, Caterpillar, Inc.

John Lesting, Continental Grain Company.

Gerald P. Lewis, AT&T Network Systems.

Peter J. Little, Boeing Commercial Airplanes.

M.J. Lyons III, American Cast Iron Pipe Company.

Phebe Marr, National Defense University.

Terry Martin, Anodyne, Inc.

Lawrence McBride, Sneed McBride International.

Robert D. McFarren, Stone & Webster Engineering Corporation.

Robert M. McGee, Occidental International Corporation.

Michael A. Miller, Occidental International Corporation.

Rick Myers, Anodyne, Inc.

Khalid Mohammed, Embassy of Iraq.

L.T. Nierth, Jr., Texaco, Inc.

Robert M. McGee, Occidental International Corporation.

Thomas Nassif, Gulf Interstate International.

William T. O'Malley, Sikorsky Aircraft, United Technologies.

Charles K. Olson, Dearborn Financial, Inc.

Raad B. Omar, Embassy of Iraq.

Clarence Ornsby, Servaas, Incorporated.

Kristina L. Palmer, Middle East Institute.

Ark W. Pang, Ionics, Inc.

Andrew T. Parasiliti, Middle East Institute.

John N. Parker, Mobil Corporation.

Arthur Pilzer, Export-Import Bank of the U.S.

James A. Placke, Paul, Hastings, Janofsky & Walker.

Stephen Plopper, SerVass, Inc.

Suzanne Pond, Department of State.

Charles T. Prindeville, International Resources Trading Company.

Ali Qaragholi, Crescent Construction Company.

Yousif M. Abdul Rahman, Embassy of Iraq.

Muzhir Razoki, Embassy of Iraq.

Burke G. Reilly, Ford Motor Company.

Philip Remler, Department of State.

John E. Rhame, General Motors Corporation.

Marc Rose, Pepsi-Cola International.

Thomas E. Rowney, BDM International.

Thomas A. Sams, Department of Commerce.

Helmut L. Stark, General Motors Overseas Corporation.

Alan J. Stoga, Kissinger Associates.

Witold S. Sulimirski, INTERCAP Investments, Inc.

S.A. Taubenblatt, Bechtel Group, Inc.

Michael Van Dusen, House Subcommittee on Europe and the Middle East.

Christopher Van Hollen, Middle East Institute.

Marshall Wiley, U.S.-Iraq Business Forum.

Guenther Wilhelm, Exxon Corporation.

William F. Williams, Bank of New York.

Vahan Zanoyan, Petroleum Finance Institute.




The SPEAKER pro tempore. Under a previous order of the House, the gentle woman from Ohio, is recognized for 60 minutes.



The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Illinois is recognized for 60 minutes.



END

SOURCE: http://www.fas.org/spp/starwars/congress/1992/h920428g.htm

You're welcome, Lars39! Good to read you. Much appreciate that you give a damn.

[Gloria]

5. KICK

[Octafish]

6. I R A Q G A T E

President Ronnie Reagan meets with then Iraqi Foreign Minister Tariq Aziz
in the Oval Office in 1984 as the two nations restore diplomatic relations.

Last I heard, Aziz was sweatin' bullets in the 125-degree heat, digging his own latrine as a prisoner of war.

I R A Q G A T E

1 9 8 0 - 1 9 9 4

On August 2, 1990, Iraqi troops rolled across the border into neighboring Kuwait. The invasion prompted outrage and action from the White House where Iraq's President Saddam Hussein was reviled as a modern day Hitler, potentially more dangerous by virtue of his nuclear weapons ambitions. But Washington's view had not always been so negative....

Overview

Focus of the Collection

Documentary Breakthroughs

One-Stop Retrieval

In-depth Indexing Makes Every Document Accessible

Research Vistas

The Collection Will Be a Necessity For:

Sample Document Titles

Project Staff

Praise for Iraqgate, 1980-1994

Photograph: Ronald Reagan and Iraqi Foreign Minister Tariq Aziz meet at the White House on November 26, 1984, as the U.S. and Iraq restore diplomatic relations.

Sample Document: A Top Secret Department of the Army memorandum describes a proposal to allow Iraq to buy U.S. military helicopters in exchange for intelligence information.

SOURCE w LINKS: http://www.gwu.edu/~nsarchiv/nsa/publications/iraqgate/iraqgate.html

Thanks, Gloria! I appreciate very much you caring about our nation's missing history and how it affects where we're heading.

[Kurovski]

7. K&R

Thank you, Octafish.

[Octafish]

9. Kissinger Associates, BNL and Iraq

Here's a great resource with detials and links on how Kissinger and Company made a killing off of arming Iraq (BNL is "Banco Nazionale del Lavoro," an Italian bank operating out of south Florida, where one little manager took the fall for all these crooked turds):

KISSINGER ASSOCIATES, BNL AND IRAQ

More on Kissinger and BNL

BNL actually a client of Kissinger Associates

Letter to President Bush

Scowcroft stock ownership

Many large defence contractors

Background on National Security Council

NSC influence over export licensing for Iraq

Scowcroft and EXIMBANK military sales

Conclusion

Financial Times, 26 Apr 1991

Stock Holdings of Brent Scowcroft

The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Texas is recognized for 60 minutes. Mr. GONZALEZ. Mr. Speaker, during a special order last week, I revealed that Henry Kissinger was a paid member of the Banca Nazionale del Lavoro Consulting Board for International Policy. Mr. Kissinger held this position during the height of the biggest banking scandal in United States history-$4 billion in unreported loans to Iraq by the Atlanta branch of BNL. This week I will reveal some new information regarding Mr. Kissinger and his relationship with BNL. I will also include in the RECORD a detailed list of Mr. Brent Scowcroft's stock holdings.


MORE ON KISSINGER AND BNL

In order to learn more about Mr. Kissinger's role at BNL, committee investigators contacted an attorney representing BNL in the United States and asked him to contact BNL in Rome. The BNL employee in Rome told BNL's attorney the following:


Mr. Kissinger has been a member of the BNL International Advisory Board since 1985. Mr. Kissinger is paid $10,000 for appearing at an Advisory Board meeting and he is paid extra for speaking at BNL functions. It is important to bring these facts out because BNL is owned by the Italian government. In effect, Mr. Kissinger's fees are indirectly paid for with Italian taxpayer money.

Banking Committee investigators were also told that Mr. Kissinger may still be a member of BNL Advisory Board. His term does not expire until next month. This information conflicts with what Mr. Kissinger was quoted as stating in a Financial Times article on April 26. In that article Mr. Kissinger stated that he resigned from BNL's advisory board on February 22, 1991. I will write BNL and Mr. Kissinger in order to clear up this discrepancy.


Mr. Kissinger went on to state in the same Financial Times article:

I resigned earlier this year because I don't want to be connected, I don't want to be asked about this sort of thing.

http://www.pinknoiz.com/covert/iraqgate04.html

Thank you,Kurovski. Really appreciate you giving a damn, my Friend.

[bobthedrummer]

8. More loops

Iraq: The Best of Enemies
Reagan's Ally Is George II's Megalomaniac
by Margie Burns
http://www.populist.com/02.17.burns.html

Everything you wanted to know about Henry Kissinger by Barbara O'Brien
http://www.democraticunderground.com/articles/02/12/04_henry.html

on edit: k&r

[bobthedrummer]

10. William Joseph Casey, A major loop

He and Saddam are together now

http://www.spartacus.schoolnet.co.uk/JFKcaseyW.htm

[Octafish]

42. Kissinger sat on BNL board of directors...

There may not be circles hot enough...

The Course of Deception

By Linda Minor
Jul/23/2006

George W. Bush will not let John Bolton fade away. It is James A. Baker III—the same man from Texas who wormed Bush I’s way into the White House as Vice President in 1980 and ran his successful campaign in 1988—who wants him there. Bolton’s role, as Baker sees it, will be to keep the money rolling to American corporations like Exxon, Pennzoil, and Halliburton—established client base of the Baker and Bush investment network. He’s the “repo man,” there to take back the collateral for the bad loans Baker pushed through as Bush I’s Secretary of State in the first Gulf War. (First published June 29, 2005)

It has become an all too common practice of the highest level of the Bush administration to lie to the Congress and the American public about its anemic performance in running our Federal Government. The very fabric of our democratic system is torn when people in positions of authority, from the cop on the street to the President of the United States, determine that the best course of action is deception. Regarding Saddam Hussein, President Bush, and his top advisers chose the course of deception instead of owning up to their policy failures. -- U.S. Congressman Henry B. Gonzalez, Congressional Record, July 9, 1992 (1)

There are many reasons that a country wages war; the official reason, the real reason, and the myriad explanations given to sell the former and obscure the latter. -- Stefan B. Herpel, “The Logic of War”

The Real Reason for War (“The Middle East is the economic lifeline of the industrial world.”)

Secretary of State James Baker on November 13, 1990 paternalistically summed up the real reason for Gulf War I: “The economic lifeline of the industrial world runs from the Gulf and we cannot permit a dictator such as this to sit astride that economic lifeline. To bring it down to the level of the average American citizen, let me say that means jobs. If you want to sum it up in one word, it's jobs.” (2)

In order to keep Americans employed, therefore, and to keep profits to multi-national corporations flowing in ever-increasing amounts, Bush, Baker & Company made a 180-degree turn in 1990, once word leaked out of how the State Department had helped to set up illegal loans to Iraq’s central bank, guaranteed by American taxpayers through the Commodity Credit Corporation. Then they prevented an investigation for over a year while they set up patsy Christopher Drogoul to take the fall for the ensuing scandal. But that’s all old news, right? A little review is in order to put today’s events in perspective.

Baker and his men were running cover for former Secretary Henry Kissinger, who was engaged in arranging off-the-books government loans to Iraq, a nation then in a “precarious financial condition,” according to the administration’s own Treasury Department, which voted against the fiscal year 1989 program for Iraq because of “creditworthiness” concerns. Kissinger had started a consulting firm—Kissinger Associates (KA)—with funds loaned in 1982 from the world's largest investment firm, E.M. Warburg, Pincus and Company. (3) As chairman of KA, whose clients included banks and defense corporations based all over the world, Kissinger saw his role as far superior to that of Secretary Baker, who, metaphorically speaking was merely the president of one corporation—the United States—which to Kissinger was subordinate to his power base of wealthy clients, each willing to pay Kissinger Associates a small fortune to help them set up operations in Iraq. (4)

Kissinger’s clients were funded in their endeavors by our own government through a strange loan scheme that involved the Italian bank, Banca Nazionale del Lavoro (BNL), whose board of directors included none other than the illustrious Henry Kissinger, the “architect of these loans as they related to U.S. foreign policy.” <5> Collateral for the loans BNL made out of its Atlanta office—far in excess of its $500,000 lending limit—was agricultural credits issued to Iraq by an agency within the U.S. Department of Agriculture.

BNL acted as the clearinghouse, exchanging the commodity credits to another customer at discounts while putting Iraq in touch with vendors of other types of commodities prohibited from purchase with the credits—weapons and components necessary to create even greater weapons, weapons of “mass destruction.” Ironic, isn’t it: how these guys go about creating jobs for us average citizens.
Notwithstanding that little attempt to tell the truth, however, Baker is a lawyer, descended from a long line of corporate and financial lawyers in Houston, Texas, and he quickly got back on track—speaking a language only lawyers can speak. You find that language in any ironclad contract. It’s called “the fine print.”

CONTINUED...

http://www.sandersresearch.org/index.php?option=com_content&task=view&id=892&Itemid=67

Gee. That was in 1991, for the fondly remembered "Good Gulf War."

From what I've seen, no war is good. And all they do is make a few people richer and more powerful.

[Octafish]

11. Shredded Justice

Odd how so few stood up to help Rep. Gonzalez in this regard, enabling the destruction of evidence of treason.

Shredded Justice

Did twelve years of criminal misconduct at the Justice Department culminate in the destruction of incriminating documents?

Stephen Pizzo with Mary Fricker & Kevin Hogan
January/February 1993 Issue

In a letter written just days before the presidential election last fall, with George Bush trailing in the polls, House Banking Committee Chairman Henry Gonzalez (D-TX) accused the U.S. Department of Agriculture of spending an entire weekend shredding documents that described the administration's role in obtaining $5.5 billion in U.S.-taxpayer-guaranteed agricultural loans for Iraq from the Banca Nazionale del Lavoro (BNL). Gonzalez demanded that all shredding equipment be removed from the department immediately. It wasn't.

"Gonzalez was seriously concerned. We felt that unless we said something pretty soon, the confetti falling on Clinton during his ride down Pennsylvania Avenue will be shredded documents from the Reagan- Bush administrations," said a congressional staff member.


Anatomy of a Shredding

Those fears proved prescient in places other than the USDA. Beginning the day after the election, according to Justice Department sources, wholesale shredding began to take place on the DOJ's sixth floor, where the key administrative offices are located. One of those witnessing the shredding was Rita Machakos, a paralegal in Justice's employment office, which is near the sixth- floor shredder. According to Machakos, a secretary whom another source identified as likely to be Tissia A. Caldwell of the Justice Management Division spent all day Wednesday, November 4, and part of Thursday, November 5, shredding documents.

By midday Thursday, a large, industrial-sized plastic bag filled with the shredded remains of innumerable documents was seen outside the room where the shredder is located, which is near the much-used DOJ Recreation Association, a commissary for employees. "Anyone could have heard that shredder," Machakos said. "It really makes a racket." She was shocked by the volume of material being destroyed."It would take half a year to get that stuff back together."

CONTINUED...

http://www.motherjones.com/news/feature/1993/01/pizzo.html

Thanks for all you do, Brother Bob! Hope you and yours have had a Merry Christmas!

[bobthedrummer]

13. Closing a loop-The Robert Gates File

After literally picking apart William Casey's brain during a "medical exam" our fresh eyed SecDef Robert Gates was picked by Reagan to become Director CIA, yet he was forced to withdraw at that time because of, well, something.

Poppy later made him Director- now he has come full circle in his BFEE loop with the "approval" of Democrats that didn't hear what the people said November 7th...

From The National Security Archives
The Robert Gates File
http://www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB208/index.htm

edited for clarity

[fooj]

12. When will we bring these treasonous, rat bastards to justice?

When? Damn.

[bobthedrummer]

16. It's not like they "resign" and get replaced, or become "ill" or are "suicided"

or get shuffled into less visible areas of the shadow government of the BFEE or take over some "privatized" area of HOMELAND (TM) or get "pardoned"-no, some of these traitors and war criminals have earned a fate similar to Saddam-most deserve many decades, or the rest of their lives, behind bars.

To hell with hiding behind the classification "system" of national security, especially Special Access Programs/SAP's-it's a crime to do that in the first place.

The history and indictments of this throughly corrupt criminal enterprise known to US as the BFEE that citizens like Octafish and others here have posted about through the years is known to the people and organizations of law enforcement and other responsible parties-yet they have been "neutralized" from bringing these traitorous criminals to justice, often by serving to shield them.

They've got to GO.

[Octafish]

20. Maybe soon. Safire absolutely pegged Poppy about his ''Iraq Scandal''...

Henry Gonzalez tried. He was prevented because so few Democrats -- and near-zero (Hello, Dr. Paul) Republicans.

What's needed is for We the People to put pressure on our elected representatives. Enough pressure will be noticed by the online community and may even be noticed by Corporate McPravda. Once Congress starts investigating what led to the current imbroglio in Iraq -- the lies, the incompetence, the corruption, etc. -- the strings lead to the crazy monkey and his puppet masters.

Iraq-gate, BNL & Arms to Saddam

Just how do you think Iraq managed to run its war against Iran for all those years? Saddam had to get juice from somebody, and George Bush wanted to sell him the arms he needed to kill the Iranians he attacked. So, George got the US taxpayers without their knowledge, to loan (read: "give") Saddam $5 billion in "agricultural credits." Meanwhile the Iran-Iraq war is prolonged by years and several hundreds of thousands of lives are lost. Of course, Bush needed a patsy, so his henchmen found a low-level banker in Miami to take the fall. His bank, Banca Nazionale del Lavoro, got a slap on the wrist. Notice, too, how they cover up their criminality by labeling public information "secret." Neat, that BFEE.

Here's what the great Liberal thinker and ex-Agnew speechwriter William Safire had to say on the subject. It's from the Congressional Record, entered by Rep. Tom Lantos and the late Rep. Henry Gonzalez.



THE ADMINISTRATION'S IRAQ GATE SCANDAL

(BY WILLIAM SAFIRE)

(Extension of Remarks - May 19, 1992)



HON. TOM LANTOS

in the House of Representatives

TUESDAY, MAY 19, 1992



* Mr. LANTOS. Mr. Speaker, just 1 year ago, Americans were flush with the glow of the military victory over Saddam Hussein. Parades were held in the largest of cities and in the smallest of hamlets. New York and Washington were trying to outdo each other in the splendor of their competing celebrations of victory.

* This year, however, we are wallowing in the sordid aftermath of the revelations of the misguided administration policy that brought about that war. We have been treated to details of how the administration bent over backwards in its misguided effort to support the regime of Saddam Hussein on the very eve of the Iraqi invasion of Kuwait.

* Mr. Speaker, William Safire summarized this squalid tale of policy run amuck in an excellent article that appeared in yesterday's issue of the New York Times. I ask that this article be placed in the Record, and I urge my colleagues to read it carefully.



THE ADMINISTRATION'S IRAQ GATE SCANDAL

(BY WILLIAM SAFIRE)

Washington: Americans now know that the war in the Persian Gulf was brought about by a colossal foreign-policy blunder: George Bush's decision, after the Iran-Iraq war ended, to entrust regional security to Saddam Hussein.

What is not yet widely understood is how that benighted policy led to the Bush Administration's fraudulent use of public funds, its sustained deception of Congress and its obstruction of justice.

As the Saudi Ambassador, Prince Bandar, was urging Mr. Bush and Mr. Baker to buy the friendship of the Iraqi dictator in August 1989, the F.B.I. uncovered a huge scam at the Atlanta branch of the Lavoro Bank to finance the buildup of Iraq's war machine by diverting U.S.-guaranteed grain loans.

Instead of pressing the investigation or curbing the appeasement, the President turned a blind eye to lawbreaking and directed another billion dollars to Iraq. Our State and Agriculture Department's complicity in Iraq's duplicity transformed what could have been dealt with as `Saddam's Lavoro scandal' into George Bush's Iraqgate.

The first element of corruption is the wrongful application of U.S. credit guarantees. Neither the Commodity Credit Corporation nor the Export-Import Bank runs a foreign-aid program; their purpose is to stimulate U.S. exports. High-risk loan guarantees to achieve foreign-policy goals unlawful endanger that purpose.

Yet we now know that George Bush personally leaned on Ex-Im to subvert its charter--not to promote our exports but to promote relations with the dictator. And we have evidence that James Baker overrode worries in Agriculture and O.M.B. that the law was being perverted: Mr. Baker's closest aid, Robert Kimmett, wrote triumphantly, `your call to . . . Yeutter . . . paid off.' Former Agriculture Secretary Clayton Yeutter is now under White House protection.

Second element of corruption is the misleading of Congress. When the charge was made two years ago in this space that State was improperly intervening in this case, Mr. Baker's top Middle East aide denied it to Senate Foreign Relations; meanwhile, Yeutter aides deceived Senator Leahy's Agriculture Committee about the real foreign-policy purpose of the C.C.C. guarantees. To carry out Mr. Bush's infamous National Security Directive 26, lawful oversight was systematically blinded.

Third area of Iraqgate corruption is the obstruction of justice. Atlanta's assistant U.S. Attorney Gail McKenzie, long blamed here for foot-dragging, would not withhold from a grand jury what she has already told friends: that indictment of Lavoro officials was held up for nearly a year by the Bush Criminal Division. The long delay in prosecution enabled James Baker to shake credits for Saddam out of malfeasant Agriculture appointees.

When House Banking Chairman Henry Gonzalez gathered documents marked `secret' showing this pattern of corruption, he put them in the Congressional Record. Two months later, as the media awakened, Mr. Bush gave the familiar `gate' order; stonewall.

`Public disclosure of classified information harms the national security,' Attorney General William Barr instructed the House Banking Committee last week. `. . . in light of your recent disclosures, the executive branch will not provide any more classified information'--unless the wrongdoing is kept secret.

`Your threat to withhold documents,' responded Chairman Gonzalez, `has all the earmarks of a classic effort to obstruct a proper and legitimate investigation . . . none of the documents compromise, in any fashion whatsoever, the national security or intelligence sources and methods.'

Mr. Barr, in personal jeopardy, has flung down the gauntlet. Chairman Gonzalez tells me he plans to present his obstruction case this week to House Judiciary Chairman Jack Brooks, probably flanked by Representatives Charles Schumer and Barney Frank, members of both committees.

`I will recommend that Judiciary consider requiring the appointment of an independent counsel,' says Mr. Gonzalez, who has been given reason to believe that Judiciary--capable of triggering the Ethics in Government Act--will be persuaded to act.

Policy blunders are not crimes. But perverting the purpose of appropriated funds is a crime; lying to Congress compounds that crime; and obstructing justice to cover up the original crime is a criminal conspiracy.

SOURCE:

http://www.fas.org/spp/starwars/congress/1992/h920519l.htm

MODS: The above is an official government document and is not restricted by copyright considerations. Thanks for all you DU!

Imagine what today would be like if we'd investigated what Mr. Gonzalez and Mr. Safire chronicled? A good many Americans and Iraqis and other innocent people would be alive. Oh that hurts so much to think about. My heart breaks for so many I know...

Thanks for giving a damn, fooj. Really appreciate your Friendship!

[rman]

14. kick

well deserved as usual.

[Octafish]

19. Alan Friedman: Spider's Web

Thanks, rman. Truly appreciate it.

Here's a really good source, much better than me. Alan Friedman, one heck of a journalist with no agenda other than the Truth, wrote: "Spider's Web: The Secret History of How the White House Illegally Armed Iraq."

It may still be available via Alibris or Amazon.

Here's an online audio interview from Amy Goodman's Democracy Now:

http://www.democracynow.org/article.pl?sid=04/06/09/1445208&mode=thread&tid=25

[rman]

21. thanks for the reminder

I saw you mention it in another thread, planned on seeing it, and forgot.

[G_j]

15. Octafish to the rescue

with another informative post!

:applause:

[H2O Man]

18. Yes !!!

Thank you Octafish, for all that you do here. It is very much appreciated!

[Octafish]

41. Whatever happened to Iraqgate?

You're welcome, H20 Man. Thank you for your kind words and all that you do to bring light and help us find our way.

OTOH, here's info on why members of DU, let alone the USA, are largely in the dark regarding the illegal arming of Iraq:

Candidate Bill Clinton vowed to get to the bottom of the Iraqgate scandal.

Whatever Happened to IRAQGATE?

By Kenneth R. Timmerman
Author of The Death Lobby: How the West Armed Iraq (Hooughton Miffin) and publisher of Iran Brief, a monthly newsletter.
The American Spectator November 1996

As the 1992 presidential race reached its final days, Bill Clinton promised that, if elected, he would appoint an independent prosecutor to investigate allegations by congressional Democrats that the U.S. government had secretly been aiding the Iraqi weapons buildup-and perhaps even its nuclear weapons effort-and then engaging in a cover-up to hide its handiwork. Repeatedly challenging President Bush for the Republican "tilt" toward Iraq in the 1980's, Clinton vowed that no political considerations would cloud the investigation. The Clinton team took the issue so seriously that vice-presidential candidate Al Gore, in a landmark speech, called the Iraq scandal "worse than Watergate."

The story had all the ingredients for a political potboiler: official letters from the director of CIA and the attorney general to the House Banking Committee Chairman Henry Gonzalez(D-TX), warning him to drop the investigation of an obscure bank in Atlanta, Georgia, because of unspecified "national security" implications; highly publicized allegations by Gonzalez of a White House cover-up a corporate whistle blower who claimed her life had been threatened; and tales of Iraqi agents cozying up to CIA operatives, and buying up U.S. companies to establish the covert arms pipeline to Saddam.

The focus of Gonzalez's investigation was a massive $5.5 billion bank fraud that the Justice Department pinned on Christopher Drogoul, the lowly Atlanta branch manager of Italy's state-owned Banca Nazionale del Lavom (BNL). Benefitting from U.S. government export credit guarantees, the Atlantic bank lent the money to companies all over world that were supplying Saddam Hussein with weapons manufacturing gear and other goods. In his defense, Drogoul-backed by Gonzalez-claimed he was merely the instrument of a secret U.S. policy to aid Saddam Hussein. Rejecting that notion, the Justice Department indicted Drogoul on 347 counts of fraud and related charges in 1991.

As the presidential campaign heated up, Gonzalez bombarded the White House, the State Department, and the intelligence agencies with subpoenas, obtaining reams of sensitive diplomatic cables and internal memos documenting the U.S."tilt" toward Iraq. It was these documents (as well as Brent Scowcroft's secret trip to China only weeks after the tianananmen massacre in June 1988) that prompted Bill Clinton to charge , during the final days of the campaign, that President Bush had been "coddling dictators."

Nearly four years and several grand juries later, however, the Clinton administration has swept its "Iraqgate" investigation under the rug. The Final Report, issued by attorney general Janet Reno on January 17, 995, and written by Reno deputy John Hogan, amounts to little more than a whitewash of the entire affair. In every case it examined, the report concluded there had been no violation of law. And in a classified addendum, subsequently rendered public, the intelligence community and the executive branch were exonerated of having "illegally armed Iraq," despite extensive evidence of intelligence community involvement unearthed by the Gonzalez investigation and the U.S. Customs Service.

CONTINUED...

http://www.gulfweb.org/doc_show.cfm?ID=527

That "national security" designation must really be something, when it comes to stopping treason trials and such.

Either that, or maybe the Justice Department, like CIA and the Pentagon, find some secrets too important to pass up to the Oval Office.

Happy New Years to you and yours, Mr. Waterman!

[Octafish]

40. War is Golden for the Bush Administration (Chris Floyd)

Thanks, G_j! Here's something we hope you'll really like, how BCCI, BNL and Kissinger & Associates made a killing off Iraq...

Cold Fronts

War is Golden for the Bush Administration

By CHRIS FLOYD
CounterPunch February 15, 2003

The opening of a long-delayed civil suit in a London courtroom; a brief, buried article on a judicial nomination; a fluctuation in the commodities market: three mundane, seemingly-unrelated items in the news last week that combined to give a fleeting glimpse of the ugly reality behind the frantic, diversionary façade of the "civilized world."

The London case involves our old friends, BCCI, the international bank that served as the front for a global crime ring involving top officials and Establishment worthies in dozens of "civilized" nations. BCCI ran guns to Saddam and other heavies, funded Pakistan's illegal nuclear weapons program, laundered drug profits, peddled prostitutes, doled out bribes, served as a conduit for covert CIA operations--and, through its connections to the bin Laden family, gave George W. Bush a sweetheart loan of $25 million to bail out one of his many business failures.

One of the respectable organizations tainted by the ring was the Bank of England, which was the financial regulator for BCCI when the front finally collapsed in 1991--leaving its legitimate creditors some $11 billion in the hole. Not surprisingly, some of these victims filed suit against ye olde B of E, claiming that its oversight of BCCI left something to be desired. But successive British governments--including the plagiaristic poodle-led pack currently in power--have fought for years to quash the lawsuit, the Observer reports.

That's because the trial could open a can of particularly grubby worms concerning the UK government's extensive canoodling with BCCI. A host of worthies are expected to be grilled in the dock, including John Major, former UK prime minister and current business partner of George Bush I in yet another secretive international front that profits from war, weapons, violence, repression and the greasing of highly-placed palms: the Carlyle Group.

Even as the trial finally gets underway, British PM Tony "Bow-Wow" Blair is withholding crucial BCCI evidence, claiming it's top secret. In fact, says Blair, the hidden juice is so red hot that even the law under which it has been declared secret must remain secret. An overreaction? Probably not--not when you consider the fact that BCCI was one of the chief conduits by which Western governments secretly armed Saddam Hussein with weapons of mass destruction throughout the 1980s. This is not the kind of dirty laundry you want aired at the very moment you are waving the bloody shirt of war at, er, Saddam Hussein for, er, possessing weapons of mass destruction that, er, you and your allies sold to him in the first place.

The Italian bank BNL was one of BCCI's main tentacles. BNL's Atlanta branch was the primary funnel used by the first Bush Administration to send millions of secret dollars to Saddam for arms purchases, including deadly chemicals and other WMD materials supplied by the Chilean arms dealer Cardoen and various politically-connected operators in the United States like, weapons merchant Matrix Churchill. (As always with the Busha Nostra, geopolitics--in this case, helping Saddam wage aggressive war against Iran--and crony profits go hand in hand. Once the war was over and Iran was left a shattered hulk, with millions dead and displaced, the useful idiot Saddam was expendable, swiftly morphing from good buddy into budding Hitler.)

As soon as the BNL case broke, President Bush I moved to throttle the investigation. He appointed lawyers from both Cardoen and Matrix to top Justice Department posts--where they supervised the officials investigating their old companies. Meanwhile, White House aides applied heavy pressure on other prosecutors to restrict the range of the probe--especially the fact that Bush cabinet officials Brent Scowcroft and Lawrence Eagleburger had served as consultants for BNL during their pre-White House days as spear-carriers for yet another secretive international front that profits from war, weapons, etc., etc.: Kissinger Associates.

CONTINUED...

http://www.counterpunch.org/floyd02152003.html

Thanks for giving a damn, my Friend. Happy New Year to you and yours!

[smirkymonkey]

17. K&R!

:kick:

[bobthedrummer]

22. American Israel Public Affairs Committee profile from SourceWatch

http://www.sourcewatch.org/index.php?title=American_Israel_Public_Affairs_Committee

[Octafish]

25. Ray McGovern said it's all about OIL: Oil, Israel and Logistics.

From your link:

Joel Beinin, a contributing editor of Middle East Report and a professor of Middle East history at Stanford University writes that AIPAC "became a significant force in shaping public opinion and US Middle East policy after the 1967 Arab-Israeli war. Its power was simultaneously enabled and enhanced by Israel's emergence as a regional surrogate for US military power in the Middle East in the terms outlined by the 1969 Nixon Doctrine".(1)

Its reputation for being a politically powerfull lobby, Beinin argues, dates back to the 1970s and 1980s when it "was able to unseat representatives and senators who could not be counted on to support Israel without qualification, such as Sen. Charles Percy (R-IL), Rep. Paul Findley (R-OH) and Rep. Pete McCloskey (R-CA)".

"In 2002, the pro-Israel lobby successfully targeted African-American representatives Earl Hilliard (D-AL) and Cynthia McKinney (D-GA) for defeat in Democratic primaries. Hilliard and McKinney were both vulnerable for reasons unrelated to Israel. McKinney, for instance, was defeated in part because the open primary allowed Republicans angered over her comments about the September 11 attacks to cross over and vote against her in the Democratic primary. Nonetheless, their defeat enhanced the impression that the pro-Israel lobby wields great power in electoral politics," Beinin wrote.

Mr. McGovern wrote:

Former CIA Agent Says Bush to Blame for 9/11

by Chris Gardner
Published on Wednesday, September 22, 2004 by the University of South Florida Oracle

Former CIA agent Ray McGovern went over what he considers the failures of the intelligence community and current administration over the past few years. He has 27 years of experience as a CIA analyst to draw upon and has dealt with every administration from Kennedy to Bush Sr.

"It's difficult for people to learn the truth about things like Iraq," said McGovern, a member of the Veteran Intelligence Professionals for Sanity (VIPS), which is comprised of more than 40 former employees of agencies such as the CIA, the Defense Intelligence Agency, Department of State's Bureau of Intelligence and Research, Army Intelligence, the FBI and the National Security Agency.

SNIP...

McGovern told a story about CIA officials who gave false information about enemy troop numbers in Vietnam to President Johnson. The lie led to a surprise of U.S. forces by the Tet Offensive in 1968. In this war of attrition, the agency wanted to make it look like the United States was doing better than it really was, McGovern said.

"Picture the Vietnam Memorial in Washington; it's a big 'V' shape. Now picture it with just one side of the 'V'. It might have been that way if some people had told the truth," McGovern said.

SNIP...

He mentioned how the Bush administration wanted to involve the country with the war in Iraq for certain reasons other than fear of weapons of mass destruction, which was just a more media-friendly explanation for the war.

"I have initials for why I think we went to war in Iraq," McGovern said. "O.I.L. O-I-L, O is for oil, I is for Israel and L is for logistics, as in when we have Iraq we have a foothold and a number of bases strategically placed in the Middle East so we can be in control over there and also to protect Israel."

CONTINUED...

http://www.commondreams.org/headlines04/0922-01.htm

On a side note: Pete McCloskey was the guy who ran for the Republican presidential nomination against Richard Nixon in 1972. A good man, McCloskey went on record and stated Pat Robertson (The Liquor Officer) was a Korean War coward.

[Little Star]

23. Thank You. K&R

[Octafish]

27. You're welcome, Little Star. Here's a more on how USA sold Chemicals to Iraq...

Bush and his cronies are so crooked they can't even pee straight.

U.S. Had Key Role in Iraq Buildup

Trade in Chemical Arms Allowed Despite Their Use on Iranians, Kurds

by Michael Dobbs
Published on Monday, December 30, 2002 by the Washington Post

High on the Bush administration's list of justifications for war against Iraq are President Saddam Hussein's use of chemical weapons, nuclear and biological programs, and his contacts with international terrorists. What U.S. officials rarely acknowledge is that these offenses date back to a period when Hussein was seen in Washington as a valued ally.

Among the people instrumental in tilting U.S. policy toward Baghdad during the 1980-88 Iran-Iraq war was Donald H. Rumsfeld, now defense secretary, whose December 1983 meeting with Hussein as a special presidential envoy paved the way for normalization of U.S.-Iraqi relations. Declassified documents show that Rumsfeld traveled to Baghdad at a time when Iraq was using chemical weapons on an "almost daily" basis in defiance of international conventions.

The story of U.S. involvement with Saddam Hussein in the years before his 1990 attack on Kuwait -- which included large-scale intelligence sharing, supply of cluster bombs through a Chilean front company, and facilitating Iraq's acquisition of chemical and biological precursors -- is a topical example of the underside of U.S. foreign policy. It is a world in which deals can be struck with dictators, human rights violations sometimes overlooked, and accommodations made with arms proliferators, all on the principle that the "enemy of my enemy is my friend."

Throughout the 1980s, Hussein's Iraq was the sworn enemy of Iran, then still in the throes of an Islamic revolution. U.S. officials saw Baghdad as a bulwark against militant Shiite extremism and the fall of pro-American states such as Kuwait, Saudi Arabia, and even Jordan -- a Middle East version of the "domino theory" in Southeast Asia. That was enough to turn Hussein into a strategic partner and for U.S. diplomats in Baghdad to routinely refer to Iraqi forces as "the good guys," in contrast to the Iranians, who were depicted as "the bad guys."

A review of thousands of declassified government documents and interviews with former policymakers shows that U.S. intelligence and logistical support played a crucial role in shoring up Iraqi defenses against the "human wave" attacks by suicidal Iranian troops. The administrations of Ronald Reagan and George H.W. Bush authorized the sale to Iraq of numerous items that had both military and civilian applications, including poisonous chemicals and deadly biological viruses, such as anthrax and bubonic plague.

CONTINUED...

http://www.commondreams.org/headlines02/1230-04.htm

Another thing that breaks my heart is that my country played both sides against each other in the Iran-Iraq War, a conflict that killed perhaps 2 million people.

Of course, there's a silver lining. The US and global elites who own defense stocks made a lot of money off both.

Thanks for giving a damn, Little Star. Really appreciate you caring.

[Jcrowley]

24. Long before Bush- Saddam's early days and the CIA

<snip>

In the mid-1980s, Miles Copeland, a veteran CIA operative, told UPI the CIA had enjoyed "close ties" with Qasim's ruling Baath Party, just as it had close connections with the intelligence service of Egyptian leader Gamel Abd Nassar. In a recent public statement, Roger Morris, a former National Security Council staffer in the 1970s, confirmed this claim, saying that the CIA had chosen the authoritarian and anti-communist Baath Party "as its instrument." Adel Darwish, Middle East expert and author of "Unholy Babylon," said the move was done "with full knowledge of the CIA," and that Saddam's CIA handler was an Iraqi dentist working for CIA and Egyptian intelligence. U.S. officials separately confirmed Darwish's account.

<snip>


Saddam then crossed into Syria and was transferred by Egyptian intelligence agents to Beirut, according to Darwish and former senior CIA officials. While Saddam was in Beirut, the CIA paid for Saddam's apartment and put him through a brief training course, former CIA officials said. The agency then helped him get to Cairo, they said.

<snip>

In Cairo, Saddam was installed in an apartment in the upper class neighborhood of Dukki and spent his time playing dominos in the Indiana Café, watched over by CIA and Egyptian intelligence operatives, according to Darwish and former U.S. intelligence officials.

<snip>

But during this time Saddam was making frequent visits to the American Embassy where CIA specialists such as Miles Copeland and CIA station chief Jim Eichelberger were in residence and knew Saddam, former U.S. intelligence officials said. Saddam's U.S. handlers even pushed Saddam to get his Egyptian handlers to raise his monthly allowance, a gesture not appreciated by Egyptian officials since they knew of Saddam's American connection, according to Darwish. His assertion was confirmed by former U.S. diplomat in Egypt at the time.

<snip>

The CIA/Defense Intelligence Agency relation with Saddam intensified after the start of the Iran-Iraq war in September of 1980. During the war, the CIA regularly sent a team to Saddam to deliver battlefield intelligence obtained from Saudi AWACS surveillance aircraft to aid the effectiveness of Iraq's armed forces, according to a former DIA official, part of a U.S. interagency intelligence group.

http://www.informationclearinghouse.info/article2849.htm

[Octafish]

26. The Teicher Affidavit

Thanks for filling in the important history.

Here's how these powerful and secret elites use their power, courtesy of then-National Security Council staffer Howard Teicher:

The Teicher Affidavit: Iraqgate

Following is the sworn court declaration of former NSC official Howard Teicher, dated 1/31/95,
regarding 'Iraqgate.' The document is currently under seal by the US District Court, Southern District of Florida. The original document bears Teicher's dated signature.


--------------------------------------------------------------------------------



UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA

UNITED STATES OF AMERICA,

Plaintiff,

v. Case
No.:


93-241-CR-HIGHSMITH
CARLOS CARDOEN,
FRANCO SAFTA,
JORGE BURR,
INDUSTRIAS CARDOEN LIMITADA, DECLARATION OF
a/k/a INCAR, HOWARD TEICHER
SWISSCO MANAGEMENT GROUP, INC.
EDWARD A. JOHNSON
RONALD W. GRIFFIN, and
TELEDYNE INDUSTRIES, INC.,
d/b/a,
TELEDYNE WAH CHANG ALBANY,

)
Defendents.
_____________________________________________


I. Howard Teicher, hereby state that, to the best of my knowledge
and belief, the facts presented herein are true, correct and complete. I
further state that to the best of my knowledge and belief, nothing stated
in this Declaration constitutes classified information.

1. My name is Howard Teicher. From 1977 to 1987, I served in the
United States government as a member of the national security bureaucracy.
>From early 1982 to 1987, I served as a Staff Member to the United States
National Security Council.

2. While a Staff Member to the National Security Council, I was
responsible for the Middle East and for Political-Military Affairs.
During my five year tenure on the National security Council, I had
regular contact with both CIA Director William Casey and Deputy Director
Robert Gates.

3. In the Spring of 1982, Iraq teetered on the brink of losing its
war with Iran. In May and June, 1982, the Iranians discovered a gap in
the Iraqi defenses along the Iran-Iraq border between Baghdad to the north
and Basra to the south. Iran positioned a massive invasion force directly
across from the gap in the Iraqi defenses. An Iranian breakthrough at the
spot would have cutoff Baghdad from Basra and would have resulted in
Iraq's defeat.

4. United States Intelligence, including satellite imagery, had
detected both the gap in the Iraqi defenses and the Iranian massing of
troops across from the gap. At the time, the United States was officially
neutral in the Iran-Iraq conflict.

5. President Reagan was forced to choose between (a) maintaining
strict neutrality and allowing Iran to defeat Iraq, or (b) intervening and
providing assistance to Iraq.

6. In June, 1982, President Reagan decided that the United States
could not afford to allow Iraq to lose the war to Iran. President Reagan
decided that the United States would do whatever was necessary and legal
to prevent Iraq from losing the war with Iran. President Reagan formalized
this policy by issuing a National Security Decision Directive ("NSDD") to
this effect in June, 1982. I have personal knowledge of this NSDD because
I co-authored the NSDD with another NSC Staff Member, Geoff Kemp. The
NSDD, including even its indentifying number, is classified.

7. CIA Director Casey personally spearheaded the effort to ensure
that Iraq had sufficient military weapons, ammunition and vehicles to
avoid losing the Iran-Iraq war. Pursuant to the secred NSDD, the United
States actively supported the Iraqi war effort by supplying the Iraqis
with billions of dollars of credits, by providing U.S. military
intelligence and advice to the Iraqis, and by closely monitoring third
country arms sales to Iraq to make sure that Iraq had the military
weaponry required. The United States also provided strategic operational
advice to the Iraqis to better use their assets in combat. For example,
in 1986, President Reagan sent a secret message to Saddam Hussein telling
him that Iraq should step up its air war and bombing of Iran. This
message was delivered by Vice President Bush who communicated it to
Egyptian President Mubarak, who in turn passed the message to Saddam
Hussein. Similar strategic operational military advice was passed to
Saddam Hussein through various meetings with European and Middle Eastern
heads of state. I authored Bush's talking points for the 1986 meeting
with Mubarak and personally attended numerous meetings with European and
Middle East heads of state where the strategic operational advice was
communicated.

8. I personally attended meetings in which CIA Director Casey or
CIA Deputy Director Gates noted the need for Iraq to have certain weapons
such as cluster bombs and anti-armor penetrators in order to stave off the
Iranian attacks. When I joined the NSC staff in early 1982, CIA Director
Casey was adamant that cluster bombs were a perfect "force multiplier"
that would allow the Iraqis to defend against the "human waves" of Iranian
attackers. I recorded those comments in the minutes of National Security
Planning Group ("NSPG") meetings in which Casey or Gates participated.

9. The CIA, including both CIA Director Casey and Deputy Director
Gates, knew of, approved of, and assisted in the sale of non-U.S. origin
military weapons, ammunition and vehicles to Iraq. My notes, memoranda
and other documents in my NSC files show or tend to show that the CIA knew
of, approved of, and assisted in the sale of non-U.S. origin military
weapons, munitions and vehicles to Iraq.

10. The United States was anxious to have other countries supply
assistance to Iraq. For example, in 1984, the Israelis concluded that
Iran was more dangerous than Iraq to Israel's existence due to the growing
Iranian influence and presence in Lebanon. The Israelis approached the
United States in a meeting in Jerusalem that I attended with Donald
Rumsfeld. Israeli Foreign Minister Yitzhak Shamir asked Rumsfeld if the
United States would deliver a secret offer of Israeli assistance to Iraq.
The United States agreed. I travelled wtih Rumsfeld to Baghdad and was
present at the meeting in which Rumsfeld told Iraqi Foreign Minister Tariq
Aziz about Israel's offer of assistance. Aziz refused even to accept the
Israelis' letter to Hussein offering assistance, because Aziz told us that
he would be executed on the spot by Hussein if he did so.

11. One of the reasons that the United States refused to license
or sell U.S. origin weapons to Iraq was that the supply of non-U.S. origin
weapons to Iraq was sufficient to meet Iraq's needs. Under CIA DIrector
Casey and Deputy Director Gates, the CIA made sure that non-U.S.
manufacturers manufactured and sold to Iraq the weapons needed by Iraq.
In certain instances where a key component in a weapon was not readily
available, the highest levels of the United States government decided to
make the component available, directly or indirectly, to Iraq. I
specifically recall that the provision of anti-armor penetrators to Iraq
was a case in point. The United States made a policy decision to supply
penetrators to Iraq. My notes, memoranda and other documents in my NSC
files will contain references to the Iraqis' need for anti-armor
penetrators and the decision to provide penetrators to Iraq.

12. Most of the Iraqi's military hardware was of Soviet origin.
Regular United States or NATO ammunition and spare parts could not be used
in this Soviet weaponry.

13. The United States and the CIA maintained a program known as
the 'Bear Spares" program whereby the United States made sure that spare
parts and ammunition for Soviet or Soviet-style weaponry were available to
countries which sought to reduce their dependence on the Soviets for
defense needs. If the "Bear Spares" were manufactured outside the United
States, then the United States could arrange for the provision of these
weapons to a third country without direct involvement. Israel, for
example, had a very large stockpile of Soviet weaponry and ammunition
captured during its various wars. At the suggestion of the United States,
the Israelis would transfer the spare parts and weapons to third countries
or insurgent movements (such as the Afghan rebels and the Contras).
Similarly, Egypt manufactured weapons and spare parts from Soviet designs
and porvided these weapons and ammunition to the Iraqis and other
countries. Egypt also served as a supplier for the Bear Spares program.
The United States approved, assisted and encouraged Egypt's manufacturing
capabilities. The United States approved, assisted and encouraged Egypt's
sale of weaponry, munitions and vehicles to Iraq.

14. The mere request to a third party to carry out an action did
not constitute a "covert action," and, accordingly, required no
Presidential Finding or reporting to Congress. The supply of Cardoen
cluster bombs, which were fitted for use on Soviet, French and NATO
aircraft, was a mere extension fo the United States policy of assisting
Iraq through all legal means in order to avoid an Iranian victory.

15. My NSC files are currently held in trhe President Ronald
Reagan Presidential Archives in Simi Valley, California. My files will
contain my notes and memoranda from meetings I attended with CIA director
Casey or CIA Deputy Director Gates which included discussions of Cardoen's
manufacture and sale of cluster bombs to Iraq. My NSC files will also
contain cable traffic among various United States agencies, embassies and
other parties relating to Cardoen and his sale of cluster bombs and other
munitions to Iraq and other Middle Eastern states.

16. Under CIA Director Casey and Deputy Director Gates, the CIA
authorized, approved and assisted Cardoen in the manufacture and sale of
cluster bombs and other munitions to Iraq. My NSC files will contain
documents that show or tend to show the CIA's authorization, approval and
assistance of Cardoen's manufacture and sale of cluster bombs and other
muntions to Iraq.

17. My files will contain notes, memoranda and other documents
that will show that the highest levels fo the United States government,
including the NSC Staff and the CIA, were well aware of Cardoen's arrest
in 1983 in Miami in a sting operation relating to the smuggling of night
vision goggles to Cuba and Libya. My files will also show that the
highest levels of the government were aware of the arrest and conviction
of two of Cardoen's employees and his company Industrias Cardoen.

18. CIA Director William Casey, aware of Cardoen's arrest and the
conviction of his employees and his company, intervened in order to make
sure that Cardoen was able to supply cluster bombs to Iraq. Specifically,
CIA Director Casey directed the Secretaries of the State and Commerce
Departments that the necessary licenses required by Cardoen were not to be
denied. My files will contain notes, memoranda and other documents
showing or tending to show that CIA Director William Casey's intervention
was in order to maintain Cardoen's ability to supply cluster bombs and
other munitions to Iraq.


I declare under penalty of perjury that the foregoing is true and
correct to the best of my memory and recollection.


Executed on 1/31/95

Howard Teicher (signature appears on original)


(end of document)

http://www.webcom.com/~lpease/collections/hidden/teicher.htm

"Bear Spares" program. How droll. Especially when considering the USA also was selling, illegally, arms to Iran.

[Kurovski]

28. Kick(nt)

[Octafish]

30. Iraqgate, Saddam, Kuwait and George H.W. Bush

One name keeps Poppy-ing up in all this, Bush:

Iraqgate, Saddam, Kuwait and George H.W. Bush

Iraqgate, Saddam, Kuwait and George H.W. Bush George H.W. Bush, as vice president and later as president, actively engaged in the supply of funds and intelligence to Saddam Hussein. This dictator started his war with Iran in 1980. The Reagan/Bush support for him may have been designed to provide a counterbalance to Iran, as well as preserving access to Iraqi oil. As reported in U.S. News and World Report, this support for Iraq began February 1982, with the removal of “Iraq from State Department list of countries supporting terrorism.” Further, in November 1984, “after of 17 years, Washington and Baghdad resumed full diplomatic relations. Within a month, the Administration began sharing intelligence with Iraq”1to help in the war with Iran.

When George H.W. Bush became president, he increased American support for the Iraqi dictator. As described by the U.S. News and World Report Article (referenced above):

“Despite Saddam Hussein's gassing of Iraqi Kurds, his destabilization of Lebanon with extensive weapons shipments, his generous support for some of the world's most dangerous terrorists and his obsessive quest for weapons of massdestruction, the Administration of George Bush defined as its policy ‘improved relations’ with the Iraqi leader.”

Based on “hundreds of declassified documents,” this article details the provision of at least a billion dollars in loan guarantees by the Administration, the skimming of profits from the loans, and the use of those profits for weapons purchases and research.

Again, according to U.S. News and World Report, in October 1989, Bush signed “National Security Decision Directive 26 ordering expanded U.S. economic ties to Iraq, despite concerns voiced by investigators that Iraq may have bartered commodities bought with U.S. aid for weapons.” In January 1990, Bush reaffirmed his policy “of preferential treatment for Iraq, signing a presidential order declaring that expanded trade and other exchanges are in the United States’ interest

CONTINUED in HTML:

http://newsmine.org/archive/coldwar-imperialism/iraqgate/armed-iraq/bush-saddam-hussein.txt

Thanks for the kick, Tovarich!

[Kurovski]

32. Anytime, and happy New Year!

:thumbsup:

[LibertyorDeath]

29. Octafish you have such an incredible wealth of political knowledge

Thank you for taking the time to share it so freely here on the DU.

Cheers to You :toast:

Hope you have a great New Year!

Rec....

[Octafish]

31. Following Iraq's bioweapons trail

Donkeys never forget, too. Speak of a devil...

Following Iraq's bioweapons trail

September 26, 2002

BY ROBERT NOVAK
CHICAGO SUN-TIMES COLUMNIST

Sen. Robert Byrd, a master at hectoring executive branch witnesses, asked Defense Secretary Donald Rumsfeld a provocative question last week: Did the United States help Saddam Hussein produce weapons of biological warfare? Rumsfeld brushed off the Senate's 84-year-old president pro tem like a Pentagon reporter. But a paper trail indicates Rumsfeld should have answered yes.

An eight-year-old Senate report confirms that disease- producing and poisonous materials were exported, under U.S. government license, to Iraq from 1985 to 1988 during the Iran-Iraq war. Furthermore, the report adds, the American- exported materials were identical to microorganisms destroyed by United Nations inspectors after the Gulf War. The shipments were approved despite allegations that Saddam used biological weapons against Kurdish rebels and (according to the current official U.S. position) initiated war with Iran.

This record is no argument for or against waging war against the Iraqi regime, but current U.S. officials are not eager to reconstruct the mostly secret relationship between the two countries. While biological warfare exports were approved by the U.S. government, the first President George Bush signed a policy directive proposing ''normal'' relations with Saddam in the interest of Middle East stability. Looking at a little U.S.-Iraqi history might be useful on the eve of a fateful military undertaking.

At a Senate Armed Services hearing last Thursday, Byrd tried to disinter that history. ''Did the United States help Iraq to acquire the building blocks of biological weapons during the Iran-Iraq war?'' he asked Rumsfeld. ''Certainly not to my knowledge,'' Rumsfeld replied. When Byrd persisted by reading a current Newsweek article reporting these exports, Rumsfeld said, ''I have never heard anything like what you've read, I have no knowledge of it whatsoever, and I doubt it.''

That suggests Rumsfeld also has not read the sole surviving copy of a May 25, 1994, Senate Banking Committee report. In 1985 (five years after the Iraq-Iran war started) and succeeding years, said the report, ''pathogenic (meaning ''disease producing''), toxigenic (meaning ''poisonous'') and other biological research materials were exported to Iraq, pursuant to application and licensing by the U.S. Department of Commerce.'' It added: ''These exported biological materials were not attenuated or weakened and were capable of reproduction.''

CONTINUED...

http://newsmine.org/archive/coldwar-imperialism/iraqgate/armed-iraq/bioweapons-trail.txt

Thanks for the kind words and wishes, LibertyorDeath. I owe it all to a long memory and living a long time. A Happy New Year to you and yours, my Friend!

[LibertyorDeath]

34. More to digest , thanx! Is that the infamous Robert Novak

of cnn fame?

As far as Saddam goes usually the powers that be in America install Dictators or at least
spend a lot of time and energy keeping them in power.

In Saddam's case he decided not to play nice so they have made an example of him imo.

A Very Happy New Year to You !

http://www.huppi.com/kangaroo/CIAtimeline.html

By Steve Kangas

A Timeline of CIA Atrocities

The following timeline describes just a few of the hundreds of atrocities and crimes committed by the CIA. (1)

CIA operations follow the same recurring script. First, American business interests abroad are threatened by a popular or democratically elected leader. The people support their leader because he intends to conduct land reform, strengthen unions, redistribute wealth, nationalize foreign-owned industry, and regulate business to protect workers, consumers and the environment. So, on behalf of American business, and often with their help, the CIA mobilizes the opposition. First it identifies right-wing groups within the country (usually the military), and offers them a deal: "We'll put you in power if you maintain a favorable business climate for us." The Agency then hires, trains and works with them to overthrow the existing government (usually a democracy). It uses every trick in the book: propaganda, stuffed ballot boxes, purchased elections, extortion, blackmail, sexual intrigue, false stories about opponents in the local media, infiltration and disruption of opposing political parties, kidnapping, beating, torture, intimidation, economic sabotage, death squads and even assassination. These efforts culminate in a military coup, which installs a right-wing dictator. The CIA trains the dictator’s security apparatus to crack down on the traditional enemies of big business, using interrogation, torture and murder. The victims are said to be "communists," but almost always they are just peasants, liberals, moderates, labor union leaders, political opponents and advocates of free speech and democracy. Widespread human rights abuses follow.

[Octafish]

37. Yeah, it's Novak who exposed Valerie Plame and Brewster Jennings & Assoc. as CIA

At times, the guy's been a real thorn in the side of the Bushes. Other days, he empowers gangsters. I dunno who he really works for.

Steve Kangas was as good as they come. He is missed by all who really love the USA, liberty and truth.

The Origins of the Overclass

By Steve Kangas

The wealthy have always used many methods to accumulate wealth, but it was not until the mid-1970s that these methods coalesced into a superbly organized, cohesive and efficient machine. After 1975, it became greater than the sum of its parts, a smooth flowing organization of advocacy groups, lobbyists, think tanks, conservative foundations, and PR firms that hurtled the richest 1 percent into the stratosphere.

The origins of this machine, interestingly enough, can be traced back to the CIA. This is not to say the machine is a formal CIA operation, complete with code name and signed documents. (Although such evidence may yet surface — and previously unthinkable domestic operations such as MK-ULTRA, CHAOS and MOCKINGBIRD show this to be a distinct possibility.) But what we do know already indicts the CIA strongly enough. Its principle creators were Irving Kristol, Paul Weyrich, William Simon, Richard Mellon Scaife, Frank Shakespeare, William F. Buckley, Jr., the Rockefeller family, and more. Almost all the machine's creators had CIA backgrounds.

During the 1970s, these men would take the propaganda and operational techniques they had learned in the Cold War and apply them to the Class War. Therefore it is no surprise that the American version of the machine bears an uncanny resemblance to the foreign versions designed to fight communism. The CIA's expert and comprehensive organization of the business class would succeed beyond their wildest dreams. In 1975, the richest 1 percent owned 22 percent of America’s wealth. By 1992, they would nearly double that, to 42 percent — the highest level of inequality in the 20th century.

How did this alliance start? The CIA has always recruited the nation’s elite: millionaire businessmen, Wall Street brokers, members of the national news media, and Ivy League scholars. During World War II, General "Wild Bill" Donovan became chief of the Office of Strategic Services (OSS), the forerunner of the CIA. Donovan recruited so exclusively from the nation’s rich and powerful that members eventually came to joke that "OSS" stood for "Oh, so social!"

Another early elite was Allen Dulles, who served as Director of the CIA from 1953 to 1961. Dulles was a senior partner at the Wall Street firm of Sullivan and Cromwell, which represented the Rockefeller empire and other mammoth trusts, corporations and cartels. He was also a board member of the J. Henry Schroeder Bank, with offices in Wall Street, London, Zurich and Hamburg. His financial interests across the world would become a conflict of interest when he became head of the CIA. Like Donavan, he would recruit exclusively from society’s elite.

By the 1950s, the CIA had riddled the nation’s businesses, media and universities with tens of thousands of part-time, on-call operatives. Their employment with the agency took a variety of forms, which included:

* Leaving one's profession to work for the CIA in a formal, official capacity.
* Staying in one's profession, using the job as cover for CIA activity. This undercover activity could be full-time, part-time, or on-call.
* Staying in one's profession, occasionally passing along information useful to the CIA.
* Passing through the revolving door that has always existed between the agency and the business world.

CONTINUED...

http://www.huppi.com/kangaroo/L-overclass.html

Happy New Year to you and yours, LibertyorDeath!

[bobthedrummer]

33. It was the desire to have access to NAZI advanced weapons programs

and other NAZI research as well as the ideological bonding of extreme RW US and NAZIS that allowed for the clandestine "recruitment" of an unknown number of NAZIS, their colleagues, social networks, families-some of them convicted war criminals with death sentences like former Bell Aviation VP Walt Dornberger who marketed a lot of militarized helicopters used in places like Vietnam.

The "rationale" was to employ these NAZIS against "godless communism". These NAZIS were given identities and jobs as Americans working in "national security". They found a political home in the RW of The Republican Party and that "influence" is still there.

SS General Walter Dornberger was in charge of labor and production at the Peenemunde NAZI rocket base that launched terror attacks into civilian areas of London, Glasgow, Manchester, and Belgium.
He oversaw construction and production using slaves from the Dora camp. The Peenemunde base was inside a mountain and literally dug by the hands of slaves. When production lagged or when an example of any infraction was made slaves would be beaten, tortured or executed-their corpses left hanging for days.

Once these NAZIS were blended into the foundation of our national security community as "Americans" the corruption and treasonous criminal activities of what we now call the BFEE accelerated.

NAZIS originally taught and trained what have become our various Special Forces (Delta, SEAL, Gray Fox, etc), NAZIS had a profound influence on what became NASA as well as the network of defense contractors that expanded the scope of the NAZI advanced weapons programs into entirely new areas of many disciplines.

Some of these NAZIS were, in fact, double agents or defectors working for the former USSR-yet many of them had their own agenda and fanatic loyalty to the goals of Adolph Hitler. This is what is in the core of the BFEE and the RW of The Republican Party.

Fwiw, the former Soviet Union had some NAZIS of their own and also utilized their research. There was a covert "arms race" between these factions that resulted in pragmatic applications of the control of human beings for political purposes. The US "won" that covert war.

This is, in my humble opinion, why the BFEE seems to be able to continue its criminal agendas-advanced ways and means to control human beings are used and licensed franchises given out from the BFEE to entities loyal to it. Yep, that sounds really nuts at first-but so did a lot of other things that used to be regarded as "impossible" or "unthinkable".

"The 1950's Secret Discovery of the Code of the Brain: U.S. and Soviet Scientists Have Discovered the Key to Consciousness for Military Purposes.
How the US Government won the Arms Race to Control Man" by Cheryl Welsh
http://mindjustice.org/book_frameset.htm

Happy New Year.

[Octafish]

35. Critical thinking during the fog of war...

Thank you for the excellent info, Brother Robert. Those who do not understand the common genesis of the U.S. Right Wing and the NAZI party and how they continue to work together may never realize the peril they are in until it is too late.

The info about MK/ULTRA is sickening because of what it means to personal freedom and free will, as well as what it means to our nation. Applying that awesome power has been dubbed "The Most Dangerous Game." Carla Binion understood what it meant a few days after 911:

Critical thinking during the fog of war

By Carla Binion
Previously published at Online Journal site on September 16, 2001.

September 16, 2001-The well-known phrase "fog of war" and the aphorism "truth is the first casualty of war" apply to our nation's current collective psychological state. Ever since the terrorism occurred, people who previously showed healthy skepticism regarding the corporate-owned media spin suddenly buy every word the TV talking heads say.

People are highly suggestible and controllable when in a state of numbing shock. Once in a state of shock and fear, a public is susceptible to surrendering its critical thinking. The recent terrorist attacks put the American public into just such a state.

Previously skeptical Americans are now willing to uncritically rally around George Bush, and to say, yes, we'll trust political leaders who have deceived us in the past, and, yes, we must spend billions on an unending war on terrorism, without knowing even roughly what the blueprint for that war might be.

Let's take the time to remember who Bush and his advisers are. Taking a moment to review what Bush and the CIA are capable of doing to the American people doesn't mean the U. S. shouldn't stop terrorists. It just means we also need to realize what can happen if Congress gives Bush and the CIA a blank check.

The CIA has repeatedly shown brazen contempt for the American people by using the public as guinea pigs. It's a matter of public record that the CIA used its infamous MKULTRA program to develop social control and mind control techniques.

According to Final Report, Book 1, Foreign and Military Intelligence, United States Senate Select Committee to Study Governmental Operations with Respect to Intelligence Activities, U. S. Government Printing Office, Washington, D.C., April 26, 1976, the CIA's MKULTRA program had to do with "the research and development of chemical, biological and radiological materials capable of employment in clandestine operations to control human behavior."

The above-referenced report also says the MKULTRA program techniques included "radiation, electroshock, various forms of psychiatry, psychology, sociology and anthropology, graphology, harassment substances, and paramilitary devices and materials." The reports goes on to say that the CIA tested LSD and other drugs on unwitting Americans.

CONTINUED...

http://www.bushwatch.com/binion.htm

BFEE is shorthand for the War Party. They are the people and organizations that maintain power by fostering a constant state of war. They've looted the United States Treasury and filled National Cemeteries to line their pockets. They've been active in the United States since before World War I. They've held ultimate power since November 22, 1963.

Thanks for all you do, bobthedrummer. The Truth has these bums on the run.

Most importantly: Happy New Year to you and yours!

[bobthedrummer]

45. There are so many others revealing these truths today, the 1st day of 2007

Octafish-yes, it's got a lot of folks running to contingency plans, worst case scenarios, etc.

Yet none of that stuff will be effective for long, and, hopefully, even necessary at all as the truth continues to come out.

We need more people like the late Frank Church, we need to follow-up on the truths that the 14 reports of the Church Committee revealed way back in the 1970's.

Consider the statement that Senator Church made in regards to the NSA in 1975: "I know the capacity that is there to make tyranny total in America, and we want to see to it that this agency and all agencies that possess this technology operate within the law and under proper supervision, so that we never cross over that abyss. THAT IS THE ABYSS FROM WHICH THERE IS NO RETURN."

Here are some links as to what the Church Committee investigated and what we all need to speak openly about today.
"Back to Church" by Chris Mooney 11-5-2001
http://www.prospect.org/print/V12/19/mooney-c.html

Amy Goodman interviewed the Church Committee's chief counsel, Frederick Schwarz-he immediately talked about how the abuses of national security were present in 1946, one year before the official foundation of the US national security community-and how the "private sector" was already deeply involved.
http://www.democracynow.org/article.pl?sid=06/05/17/159236

"Frank Church and the Abyss of Warrantless Wiretapping" by John Nichols
http://www.commondreams.org/views06/0426-30.htm

Frank Church profile from SpartacusSchoolnet
http://www.spartacus.schoolnet.co.uk/USAchurchF.htm

We need to support and build on the truths of people like Dennis Kucinich too, since he is representative of following up on what The Church Committee's reports revealed. Dennis Kucinich and his staff did attempt to warn the nation about the 21st century realities of the unchecked unsupervised tyranny within the national security community that Senator Church had investigated.

On October 2, 2001 Dennis Kucinich introduced HR 2977 before the 107th Congress-a Congress that was meeting in a state of fear and "passing legislation" at 3-4AM, a Congress that had had some of it's Democratic leadership attacked with anthrax, a Congress that was dominated by Republican RW extremist criminals and traitors.

The original language of HR 2977 went into specifics of "exotic weapons" in "Section 7 Definitions (2)(A) (ii)(II)through the use of land-based, sea-based, or space-based systems using radiation, electromagnetic, psychotronic, sonic, laser, or other energies directed at individual persons or targeted populations for the purpose of information war, mood management, or mind control of such persons or populations;..."

This section disappeared from the revision of HR 2977, some people think that is a good thing because it mentions some of the 21st century products and services of tyranny utilized by the BFEE and their associates. This disappeared section of HR 2977 clearly supports the position of Cheryl Welsh, a UN recognized non-lethal weapons expert and human rights activist that I linked to upthread.

HR 2977
http://www.fas.org/sgp/congress/2001/hr2977.html

I can only hope that although our nation and the world appear to be teetering at the edge of the "abyss" that Senator Church warned of in 1975, that we won't be pushed into it by the BFEE.

My New Year's "wish" is for transparency and knowledge about all this "tin-foil" stuff to increase.

And to prosecute the traitors and criminals responsible.

[WiseButAngrySara]

36. K&R and bookmarked (like all of your posts!) Thanks

Octafish, and Happy New Year!!!!!!!!

[Octafish]

38. Documents show 9 months before Iraq's Kuwait invasion, Poppy approved $1 billion in aid.

Your kind words are why I do this, WiseButAngrySara.

Here's work from the LA Times by Douglas Frantz and Murray Waas:

BUSH SECRET EFFORT HELPED IRAQ BUILD ITS WAR MACHINE;

PERSIAN GULF: DOCUMENTS SHOW THAT 9 MONTHS BEFORE HUSSEIN'S INVASION OF KUWAIT THE PRESIDENT

APPROVED $1 BILLION IN AID. OBJECTIONS FROM OTHERS WERE SUPPRESSED.

BUSH AND AID TO IRAQ: First of three parts.
Next: Reagan and Bush administrations pressure
the Export-Import Bank.

BYLINE: By DOUGLAS FRANTZ and MURRAY WAAS, SPECIAL TO THE LOS ANGELES TIMES;
Frantz is a Times staff writer and Waas is a special correspondent.

WASHINGTON -- In the fall of 1989, at a time when Iraq's invasion of Kuwait was only nine months away and Saddam
Hussein was desperate for money to buy arms, President Bush signed a top-secret National Security
Decision directive ordering closer ties with Baghdad and opening the way for $1 billion in new aid,
according to classified documents and interviews.

The $1-billion commitment, in the form of loan guarantees for the purchase of U.S. farm
commodities, enabled Hussein to buy needed foodstuffs on credit and to spend his scarce reserves of
hard currency on the massive arms buildup that brought war to the Persian Gulf.

SNIP...

Clearly, U.S. aid did not lead Hussein to become a force for peace in the volatile region. In the
spring of 1990, as senior Administration officials worked to give him more financial aid, the Iraqi
leader bragged that Iraq possessed chemical weapons and threatened to "burn half of Israel." Nor
did he change his savagely repressive methods. In the summer of 1988, for example, he shocked the
world by killing several thousand Kurds with poison gas.

Even today, the Iraqi nuclear and chemical weapons programs carried forward with the help of
sophisticated American technology continue to haunt U.S. and United Nations officials as they
struggle to root out elements of those programs that have survived the allied victory in the
Persian Gulf War.

What drove Bush to champion the Iraqi cause so ardently and so long is not clear. But some evidence
suggests that it may have been a case of single-minded pursuit of a policy after its original
purpose had been overtaken by events -- and a failure to understand the true nature of Hussein
himself.

"When the Iran-Iraq War ended and Iran was really flat on its back, there should have been some
immediate kind of repositioning of U.S. policy so you wouldn't give Saddam this signal that we were
backing him as the big shot in the region," said William B. Quandt, a Middle East expert at the
Brookings Institution.

SNIP...

However, classified documents from several agencies and interviews over the last two months
demonstrate that it was foreign-policy initiatives from the White House and State Department that
guided relations with Iraq from the early 1980s to the eve of the Persian Gulf War -- and that Bush
and officials working under him played a prominent role in those initiatives.

For example:

* In 1987, Vice President Bush successfully pressed the federal Export-Import Bank to provide
hundreds of millions of dollars in aid for Iraq, the documents show, despite staff objections that
the loans were not likely to be repaid as required by law.

* After Bush became President in 1989, documents show that senior officials in his Administration
lobbied the bank and the Agriculture Department to finance billions in new Iraqi projects.

* As vice president in 1987, Bush met personally with Nizar Hamdoon, Iraq's ambassador to the
United States, to assure him that Iraq could buy more dual-use technology. It was three years later
that National Security Council officials blocked the attempt by the Commerce Department and other
agencies to restrict such exports.

* After Bush signed NSD 26 in October, 1989, Secretary of State James A. Baker III personally
intervened with Agriculture Secretary Clayton K. Yeutter to drop Agriculture's opposition to the $1
billion in food credits. Yeutter, now a senior White House official, agreed and the first half of
the $1 billion was made available to Iraq at the beginning of 1990.

* As late as July, 1990, one month before Iraqi troops stormed into Kuwait city, officials at the
National Security Council and the State Department were pushing to deliver the second installment
of the $1 billion in loan guarantees, despite the looming crisis in the region and evidence that
Iraq had used the aid illegally to help finance a secret arms procurement network to obtain
technology for its nuclear weapons and ballistic-missile program.

CONTINUED...

http://www.casi.org.uk/discuss/2000/msg00776.html

Gee. Is it any wonder that Corporate McPravda didn't really pick up on this story? That sure gets me mad.

Happy New Year to you and yours, WiseButAngrySara! Truly appreciate your Friendship.

[Jcrowley]

39. A Spider's Web

Spider's Web: The Secret History of How the White House Illegally Armed Iraq


We hear a Democracy Now! interview from last year with global economics correspondent Alan Friedman about how the United States helped illegally arm Iraq in the 1980s in a scandal involving George Bush Sr., James Baker, Donald Rumsfeld, Robert Mueller and others.

* Alan Friedman, global economics correspondent for the International Herald Tribune and author of the book Spider’s Web: The Secret History of How the White House Illegally Armed Iraq.
* Listen to entire interview with Alan Friedman.


AMY GOODMAN: . We're going to turn now to Alan Friedman, global economics correspondent to The International Herald Tribune and author of the book - The Spider’s Web, the secret history of how the White House illegally armed Iraq. We played this interview last November where he talked about the U.S. arming Iraq. We thought it would be instructive to look at that again. This is Alan Friedman.

ALAN FRIEDMAN: We need to go back to the beginning of the 1980's to understand how the United States created the monster that Saddam Hussein is today. In the early 1980's, remember the United States was violently against the Islamic fundamentalists of Iran, of Ayatollah Khomieni. At the time the United States, using the power of the White House with particular interest by Vice President George Herbert Walker Bush, using the intelligence services and the Pentagon, was embarked upon a tilt to Iraq. Nobody really liked Saddam Hussein. Everybody knew that he was a dictator who had gassed his own people but the United States made the decision to back Iraq in order to use Saddam Hussein as a - you know, as a cynical balance of power against Iran. The tragic result, of course, was that as the United States armed Iraq in the early 1980's, a war continued throughout the 1980's between Iran and Iraq, that cost the lives of more than 1 million people. What really happened then is as the 1980's progressed, and as George Herbert Walker Bush moved from the vice presidency in the Reagan administration to the White House himself, the war in Iraq -- the war between Iraq and Iran ended, and, of course, what had been created was a kind of auto pilot, if you will.

My book and my research and the work that I did at the time with people like Ted Koppel of ABC’s Nightline where we did a joint investigation and the work done at the time by William Safire in The New York Times and my own work in breaking the Iraq gate scandal showed essentially how the netherworld, the dark world of intelligence agents, arms dealers, crooked financiers that had been used in the 1980's to get military equipment from the United States and Europe to Saddam Hussein when it was considered a good thing to do, because he was being used as a bulwark against Iran continued to function after the Iran-Iraq war ended. So, essentially, a machinery of global dimension was put in place.

Now, I discovered this at the end of the 1980's when I was reporting for The Financial Times of London and we uncovered the scandal of more than $5 billion of American taxpayer backed credits that had been funneled by the Atlanta, Georgia branch of an Italian bank to Saddam Hussein with the full knowledge of the C.I.A. and later on of the White House, under the Bush administration. That’s because that bank, it later transpired, an Italian bank called B & L, its Atlanta, Georgia branch was being used to surreptitiously finance Saddam Hussein's purchase of both agricultural goods and weaponry. And the very frightening part of it is that this group of intelligence agents outside the government, but working with the blessing of the government as it later turned out with the blessing of people like James Baker and George Herbert Walker Bush, this organization of arms dealers and transshipment specialists continued to sell a whole variety of equipment to Saddam Hussein, including U.S. military rocket cluster bombs that were transshipped from Pennsylvania through Chile to Iraq, nuclear and chemical weapons technology, and missile technology and the United States didn't really do anything to stop this shipment because at the time the argument used by the C.I.A. and the White House was that if you allowed a limited amount of military weapons and technology to flow to Iraq, even though it was completely illegal against U.S. law, against international treaties, if you allowed this to happen, as an intelligence operation, the rationalization in the Bush administration went, then you could keep better track of what kind of weaponry Saddam was developing.

What really happened, of course, is that there were people along the way who were greedy, who were making money off of it, and there were people in governments in Italy and Britain and in the Thatcher government and in the Andriotti government in Italy who were working with their American counterparts and they continued the flow of equipment. Some of this is very sophisticated stuff and one of the scandals -- the way the scandal was developed was I first uncovered financial documents for a British company called Matrix Churchill based in Coventry in England that was sending what seemed to be innocent machine tool equipment to Saddam Hussein. But it wasn't. It was dual use technology that the C.I.A. and the British intelligence knew was going into Saddam's missile program and his nuclear program, but they allowed it to happen. So, the real problem is that we had a Frankenstein monster that got out of control, a Bush administration between 1988 and "Operation Desert Storm” in 1990 1991, that essentially turned a blind eye to this continuing shipment to Iraq, and then, of course, when we had the invasion of Kuwait, and the United States under Colin Powell and Schwarzkopf went in and then President Bush decided not to finish the job, but to leave Saddam alone, unfortunately, then it became time to cover up the tilt to Iraq, to cover up the way the United States has helped to shape and build Iraq's military strength and then ensued a traditional cover up which nobody cared about when I brought it out with Ted come in 1991, 1992, and the book, Spider's Web, 1993, because people in America thought it was more interesting to look at Whitewater.

AMY GOODMAN: Alan Friedman speaking to us by videophone from Rome last November. Alan Friedman, global economics correspondent for The International Herald Tribune. The book is Spider's Web, the secret history of how the White House illegally armed Iraq. You can go to our website at democracynow.org to hear the full hour interview. You can either listen to it, audio streaming or watch it video streaming at democracynow.org.

http://www.democracynow.org/article.pl?sid=03/12/17/1615235

[Karenina]

43. BTTT!

:kick:

[Octafish]

44. IRAQGATE: The Big One That (Almost) Got Away

Gee. If the pros in 1993 had a rough time understanding this...

IRAQGATE

The Big One That (Almost) Got Away

Who Chased it -- and Who Didn't

by Russ W. Baker
Columbia Journalism Review March/April 1993 | Contents

Baker, a member of the adjunct faculty at Columbia University's Graduate School of Journalism, is a free-lance writer who regularly contributes to The Village Voice. Research assistance was provided by Julie Asher in Washington and Daniel Eisenberg in New York.
ABC News Nightline opened last June 9 with words to make the heart stop. "It is becoming increasingly clear," said a grave Ted Koppel, "that George Bush, operating largely behind the scenes throughout the 1980s, initiated and supported much of the financing, intelligence, and military help that built Saddam's Iraq into the aggressive power that the United States ultimately had to destroy."

Is this accurate? Just about every reporter following the story thinks so. Most say that the so-called Iraqgate scandal is far more significant then either Watergate or Iran-contra, both in its scope and its consequences. And all believe that, with investigations continuing, it is bound to get bigger.

Why, then, have some of our top papers provided so little coverage? Certainly, if you watched Nightline or read the London Financial Times or the Los Angeles Times, you saw this monster grow. But if you studied the news columns of The Washington Post or, especially, The New York Times, you practically missed the whole thing. Those two papers were very slow to come to the story and, when they finally did get to it, their pieces all too frequently were boring, complicated,and short of the analysis readers required to fathom just what was going on. More to the point, they often ignored revelations by competitors.

The result: readers who neither grasp nor care about the facts behind facile imagery like The Butcher of Baghdad and Operation Desert Storm. In particular, readers who do not follow the story of the Banca Nazionale del Lavoro, which apparently served as a paymaster for Saddam's arms buildup, and thus became a player in the largest bank-fraud case in U.S. history.

Complex, challenging, mind-boggling stories (from Iran-contra to the S&L crisis to BCCI) increasingly define our times: yet we don't appear to be getting any better telling them. In the interest of learning from our mistakes, this reporter examined several hundred articles and television transcripts on Iraqgate and spoke to dozens of reporters, experts, and generally well-informed news consumers.

CONTINUED...

http://archives.cjr.org/year/93/2/iraqgate.asp

... No wonder the average Joe and Jane have no clue about what's what and who's who when it comes to high treason.

Glückliches Neujahr, Karenina!

[Karenina]

46. Ebenso, Liebling!

:loveya:

[bobthedrummer]

47. That swastika stench can't be masked anymore-they've got to GO

Testimony of Elizabeth Holtzman 1996 (she's currently leading an impeachment drive)
http://www.fas.org/sgp/congress/hr071498/holtzman.html

Mark Weitzman's Remarks 1999
http://www.archives.gov/iwg/research-papers/weitzman-remarks-june-1999.html

NY Times article June 1979 "Torture's Teachers"
http://www.chss.montclair.edu/english/furr/langguthleaf.html

Hugo Banzer Suarez/Operation Condor etc. by Jerry Meldon
http://www.consortiumnews.com/archive/story40.html

"The Torture Administration" by Anthony Lewis 12-2005
http://www.truthout.org/docs_2005/120905M.shtml

[Kurovski]

48. Kick.(nt)

[Rex]

49. And what was Casey's reward? A bullet, er, terminal illness

followed by a quick death. :eyes:

Casey was another one (like Saddam) that knew where all the BFEE bodies were buried. They killed him right before he was to testify before Congress over Iran-Contra. Er, he died, most conveniently, for Reagan to have his 'legacy'.

Sick how even their very own get offed in the name of money. There is no honor among thieves.

[Disturbed]

50. Iraq is not America's to sell

Iraq is not America's to sell

International law is unequivocal - Paul Bremer's economic reforms are illegal
Naomi Klein

Bring Halliburton home. Cancel the contracts. Ditch the deals. Rip up the rules. Those are just a few of the suggestions for slogans that could help unify the growing movement against the occupation of Iraq. So far, activist debates have focused on whether the demand should be for a complete withdrawal of troops, or for the United States to cede power to the United Nations.
But the "troops out" debate overlooks an important fact. If every last soldier pulled out of the Gulf tomorrow and a sovereign government came to power, Iraq would still be occupied: by laws written in the interest of another country; by foreign corporations controlling its essential services; by 70% unemployment sparked by public sector layoffs.

Any movement serious about Iraqi self-determination must call not only for an end to Iraq's military occupation, but to its economic colonisation as well. That means reversing the shock therapy reforms that US occupation chief Paul Bremer has fraudulently passed off as "reconstruction", and cancelling all privatisation contracts that are flowing from these reforms.

How can such an ambitious goal be achieved? Easy: by showing that Bremer's reforms were illegal to begin with. They clearly violate the international convention governing the behaviour of occupying forces, the Hague regulations of 1907 (the companion to the 1949 Geneva conventions, both ratified by the United States), as well as the US army's own code of war.

The Hague regulations state that an occupying power must respect "unless absolutely prevented, the laws in force in the country". The coalition provisional authority has shredded that simple rule with gleeful defiance. Iraq's constitution outlaws the privatisation of key state assets, and it bars foreigners from owning Iraqi firms. No plausible argument can be made that the CPA was "absolutely prevented" from respecting those laws, and yet two months ago, the CPA overturned them unilaterally.

http://www.commondreams.org/views03/1107-09.htm

[bobthedrummer]

51. Yes, Casey was highlighted in post 10-but worth an encore here Rex.

http://www.spartacus.schoolnet.co.uk/JFKcaseyW.htm

[bobthedrummer]

52. indictment kick