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Because Italy emerged from World War II with a strong Communist Party, domestic politics had elements of a civil war, explains Guido Moltedo, editor of Europa, a center-left daily in Italy. That meant ultra-conservative Cold Warriors battled the Communists not just electorally but through undercover operations in the intelligence world. "In addition to the secret service, SISMI, there was another, informal, parallel secret service," Moltedo says. "It was known as Propaganda Due."
Led by a neo-Fascist named Licio Gelli, Propaganda Due, with its penchant for exotic covert operations, was the stuff of conspiracy fantasies—except that it was real. According to The Sunday Times of London, until 1986 members agreed to have their throats slit and tongues cut out if they broke their oaths. Subversive, authoritarian, and right-wing, the group was sometimes referred to as the P-2 Masonic Lodge because of its ties to the secret society of Masons, and it served as the covert intelligence agency for militant anti-Communists. It was also linked to Operation Gladio, a secret paramilitary wing in NATO that supported far-right military coups in Greece and Turkey during the Cold War.
In 1981 the Italian Parliament banned Propaganda Due, and all secret organizations in Italy, after an investigation concluded that it had infiltrated the highest levels of Italy's judiciary, parliament, military, and press, and was tied to assassinations, kidnappings, and arms deals around the world. But before it was banned, P-2 members and their allies participated in two ideologically driven international black-propaganda schemes that foreshadowed the Niger Embassy job 20 years later. The first took place in 1980, when Francesco Pazienza, a charming and sophisticated Propaganda Due operative at the highest levels of SISMI, allegedly teamed up with an American named Michael Ledeen, a Rome correspondent for The New Republic. According to The Wall Street Journal, Pazienza said he first met Ledeen that summer, through a SISMI agent in New York who was working under the cover of a U.N. job.
The end result of their collaboration was a widely publicized story that helped Ronald Reagan unseat President Jimmy Carter, whom they considered too timid in his approach to winning the Cold War. The target was Carter's younger brother, Billy, a hard-drinking "good ol' boy" from Georgia who repeatedly embarrassed his sibling in the White House.http://www.vanityfair.com/politics/features/2006/07/yellowcake200607?currentPage=3Also this: Iran-Contra and assassination of Swedish prime minister Olof Palme Main article: Iran-Contra affair According to an interview given by former CIA agent Richard Brenneke and Ibrahim Razin to RAI journalist Ennio Remondino, P2 received funds from the CIA and had been involved in the Iran-Contra affair as well as in the strategy of tension; apparently the CIA supported it because of its determination to stage a coup should the Communist party take power. Due to the importance of the matters discussed, this interview gave rise to a letter from Italian president Francesco Cossiga to prime minister Giulio Andreotti. Extracts:
"Q: Excuse me, but your statements are very serious. You say that the P2 was a creation, the financial and organizational arm of the CIA to destabilize, to run covert operations in Europe? Richard Brenneke: There is no doubt. The P2 since the beginning of the 1970s was used for the dope traffic, for destabilization in a covert way. It was done secretly to keep people from knowing about the involvement of the U.S. government. In many cases it was done directly through the offices of the CIA in Rome and in some other cases through CIA centers in other countries." Richard Brenneke: "The P2 was involved in the operation for which I ended up in court, that is the delay in the liberation of the American hostages in Iran in 1980" (known as "October surprise"). Richard Brenneke claims to have met Licio Gelli in Paris in October 1980, in relationship to the "October surprise". According to him, William Casey, who would later become head of the CIA but was at that time manager of the Reagan-Bush campaign, was present, as well as Donald Gregg, who became ambassador to South Korea but at that time worked for the CIA and the U.S. National Security Council.
Also interviewed, agent Ibrahim Razin claimed that three days before Swedish prime minister Olof Palme's assassination, in 1986, Philip Guarino, a member of the Republican circle around George H.W. Bush, received a telegram signed by Licio Gelli and sent by one of his men, Umberto Ortolani, from "one of the southernmost regions of Brazil". The telegram said: "Tell our friend that the Swedish palm will be felled." As yet, Olof Palme's murder has not been solved.
According to Ibrahim Razin, "P2 was at the center, one of the main participants in the illegal arms traffic, which was connected to the drug traffic from the outset. P2 also made a substantial contribution to the recycling of large amounts of money used for this arms and drugs traffic from one country to another." Answering a question on CIA-P2 relations, Razin says: "Suffice it to see how the P2 was involved with Banco Ambrosiano and with Michele Sindona and how the CIA was involved with them in several financial manipulations. For example, in the United States the big scandal involving the S&L banks is big news. The Texas state prosecutor has found evidence of CIA involvement in the bankruptcy of many of these banks which used illegal funds for their operations. The man who knows a lot about this is Richard Brenneke, a former CIA agent from Oregon." <5>http://en.wikipedia.org/wiki/Propaganda_Due
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