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[RRE]Intelligence
``` [Here is another small sample of the information in this amazing publication, which I'm sending out under a standing agreement with Olivier Schmidt. I am no friend of draconian intellectual property laws, but I also disapprove of the many people who circulate complete issues of "Intelligence" to people who haven't paid for it. It would suck if Schmidt & Co. had to close up shop because of this pilferage.]
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Date: Thu, 19 Nov 1998 08:20:50 -0500 (EST)
From: Intelligence
INTELLIGENCE ISSN 1245-2122 N. 88 New Series, 16 November 1998 Every Two to Three Weeks Next Issue on 30 November1998 Publishing since 1980
Editor Olivier Schmidt (email adi@ursula.blythe.org; web http://www.blythe.org/Intelligence; tel/fax 33 1 40 51 85 19; post ADI, 16 rue des Ecoles, 75005 Paris, France) Copyright ADI 1998, reproduction in any form forbidden without explicit authorization from the ADI. A one year subscription (18 issues with full index) is US $290.
EXCLUSIVE REPORTS IN INTELLIGENCE
ITALY - SILVIO BERLUSCONI, THE MAFIA AND "GRAND MEDIATORS," (N. 5) FRANCE - REPORT ON THE "DIRECTION DU RENSEIGNEMENT MILITAIRE" (N. 16) SLOVAKIA - REACHING WEST WHILE SLIDING EAST (N. 51) SOUTH AFRICA - EXECUTIVE OUTCOMES OR DIAMONDS ARE A GRUNT'S BEST FRIEND (N. 55) BULGARIA - A FIERY "FAR-WEST" FORTNIGHT IN SOFIA (N. 63) GREAT BRITAIN/SAUDI ARABIA - JONATHAN AITKEN "TWISTS SLOWLY IN THE WIND" (N. 64) ENVIRONMENTAL MOVEMENT & COVERT ACTION (N. 73) EXECUTIVE OUTCOMES & SANDLINE FORGE ON ... FOR PROFIT (N. 82)
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TABLE OF CONTENTS, N. 88, 16 November 1998
FRONT PAGE
USA/NICARAGUA - CIA'S "DAMAGE LIMITATION" VERSION OF HISTORY p.1
TECHNOLOGY AND TECHNIQUES
KIDNAPPING AND ANTI-KIDNAPPING p.2 CYBERCRIME WATCH GOES INTERNATIONAL p.3
PEOPLE
USA - JAMES CHARLES "ATOMIC DOG" KOPP p.4 GREAT BRITAIN - IVOR ROBERTS p.5 FRANCE - PIERRE-HENRI BUNEL p.6
AGENDA
COMING EVENTS THROUGH 1 JANUARY 1999 p.7
INTELLIGENCE AROUND THE WORLD
USA - CIA'S MIDDLE EAST ROLE & DST REORGANIZATION p.8 NSA CHANGES BOSSES AS ECHELON GOES TO CONGRESS p.9 FBI Wiretaps, Gun Data Base & Comsec Business. p.10 Open Source Intelligence. p.11 GREAT BRITAIN - CLEAN UP SPIES & THE CYBER ZONE p.12 FRANCE - "BOXING-IN" ISRAEL & "BOXING-OUT" THE US p.13 GERMANY - SPD SPLITS INTELLIGENCE RIGHT & LEFT p.14 WESTERN EUROPE - Open Source Intelligence. p.15 RUSSIA - WORKING WITH THE FBI TO KEEP AFLOAT p.16 EASTERN EUROPE - Open Source Intelligence. p.17 COLOMBIA - TROUBLING BP OPERATIONS IN THE NAME OF OIL p.18 LATIN AMERICA - Open Source Intelligence. p.19 AFRICA - Open Source Intelligence. p.20 ISRAEL/PALESTINE - SPIES IN THE OINTMENT p.21 MIDDLE EAST - Open Source Intelligence. p.22 ASIA - Open Source Intelligence. p.23
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FRONT PAGE
Intelligence, N. 88, 16 November 1998, p. 1
USA/NICARAGUA
CIA'S "DAMAGE LIMITATION" VERSION OF HISTORY
In a recently declassified 410-page internal report, former CIA Inspector General, Frederick Hitz, has confirmed that the CIA tolerated drug trafficking among leaders of the Nicaraguan Contra movement during the 1980s, that agency senior executives failed to inform Congressional representatives when questioned about reports that the Contras were trafficking in cocaine to finance their "low intensity" campaign to overthrow the Sandinista government, and that authorization for certain drug smuggling operations came directly from Ronald Reagan's National Security Council, approved by Lieutenant Colonel Oliver North, whose private liaison to the Contras was State Department official, Robert Owen, in charge of the Nicaraguan Humanitarian Aid Office (NHAO). The report identifies 58 drug- implicated individuals belonging to various Contra groups who worked with CIA operatives. In 11 cases, the report concluded that "no information had been found to indicate that any US law enforcement agency or executive branch agency was informed by the CIA of drug trafficking allegations," while, in six cases, "CIA knowledge of accusations or information indicating that organizations or individuals had been involved in drug trafficking did not deter their use or employment by [the] CIA".
The report admits that the CIA had information linking 14 pilots and two other people to cocaine transport and trafficking, including pilot George Morales, who was indicted by US federal authorities in the spring of 1984, shortly after the CIA broke off contact with operative Octaviano Cesar and the Contra Sandino Revolutionary Front. Cesar was linked to Morales in a $3 million "guns for drugs" deal, but the report states that the agency "continued to have contact through 1984- 87 with four of the [other] individuals involved with Morales".
George Morales led a team of pilots who used the facilities of US rancher John Hull in northern Costa Rica to fly weapons to the Contras and return to the US with cocaine. The cocaine was flown from Colombia to airstrips on the farmlands owned by Hull -- described as the CIA/NSC liaison to the Costa Rican-based Contras on the "southern front of the US war against Nicaragua" -- who was paid a $10,000 NSC monthly retainer, according to a staff report by Senator John Kerry, published in October 1986, and $300,000 per flight, according to Morales, in a CBS News report, on 6 April 1987. The cocaine was supplied by Pablo Escobar and Jorge Ochoa, the two major Medellin cartel producers, which accounted for 80 percent of the cocaine reaching the US in the mid-1980s. Hull and two right-wing Cuban Americans, Felipe Vidal and Rene Corvo, were paid by the Medellin bosses to provide labor and trans-shipment facilities. One of Morales' pilots, Gary Betzner, also told CBS News he had made two runs to Hull's ranch, involving "two small aircraft loads of weapons ... and returned to Florida with approximately 1,000 kilos of cocaine". Betzner estimated that the "guns for drugs" operations eventually netted the Contras "around forty million dollars". A third pilot, Michael Tolliver, told CBS Newsday, in April 1987, that he was paid $75,000 to fly 28,000 pounds of weapons to Aquacate Air Base in Honduras, where they were off-loaded by Contra troops. His DC-6 returned to Homestead USAF base in south Florida, carrying 35,000 kilos of marijuana.
Costa Rica was not the only trans-shipment option. The Hitz report outlines the case of Carlos Amador who was flying "humanitarian aid" from Ilopango air base in El Salvador. A CIA cable from the region, dated April 1986, claimed that a US Drug Enforcement Administration (DEA) source stated that "Amador was probably picking up cocaine in San Salvador to fly to Grand Cayman and then to south Florida". The cable warned that the DEA was planning to ask the local police to investigate Amador "and anyone associated with Hanger 4" -- which was part of a military facility used to resupply the Contras after Congress cut off support in October 1984. Langley's response to the CIA Chief of Station in El Salvador was unequivocal: "Would appreciate Station advising [DEA] not to make any inquiries to anyone re Hanger no. 4 at Ilopango since only legitimate, supported operations were conducted from this facility". Hanger 4 operations were directly controlled by Lt. Col. Ollie North, who was spearheading Reagan's crusade against Communism in Central America, financed by cocaine smuggled into the US on planes chartered by US government agencies, while the president's wife spearheaded the Reagan administration's other major theme in the 1980s, the "War on Drugs", taking her anti-drug "Just Say No" crusade across America. North was aware of the "guns for drugs" flights for at least a year before the CIA's cable regarding Amador and the DEA, writing in his notes, following a meeting with Robert Owen on 9 August 1985, that "the DC-6 which is being used for runs out of New Orleans is probably being used for drug runs into the US". Four months earlier, in a memo from Owen to North dated 1 April 1985, Costa Rican "freedom fighter", Jose Robelo, was described as being "potentially" involved in narcotics trafficking, while Contra leader Sebastian Gonzales was "now involved in drug running out of Panama". The following year, a CIA back-channel message to North from the US ambassador in Costa Rica, Lewis Tambs, stated that yet another Contra overlord, Adolfo Chamorro, was also trafficking in cocaine.
Despite the evidence, the CIA admitted to only one case of drug trafficking involving an anti-Sandinista organization in its classified briefings before House and Senate committees: the ARDEN 15th of September group, which was disbanded in 1982. The IG's report accepts that neither the CIA nor its employees "conspired with or assisted Contra-related organizations or individuals in drug trafficking to raise funds for the Contras or any other purpose", and concluded that the CIA "acted inconsistently in handling allegations or information indicating that Contra-related organizations or individuals were involved in drug trafficking". Apart from the back-channel intelligence, dozens of NSC memos, and nearly 1,000 CIA cables from the field, the Reagan administration should have realized the extent of the "problem" in the early 1980s, specifically following the seizure of by US Customs of an estimated 500 kilos of cocaine while being off-loaded from a Colombian freighter in San Francisco, in 1983. The "frogman" bust was the largest ever made on the West Coast up to that point, and was linked to a Costa Rican-based Contra group, according to the "San Francisco Examiner", in March 1986. Although court documents relating to the Contra connection were sealed, the newspaper disclosed that the US Treasury returned $36,020 which was confiscated as the proceeds of drug-trafficking, to Julio Zavala, one of the convicted smugglers, after he submitted letters from Contra leaders claiming the cash was "a political donation for the restoration of democracy in Nicaragua". In court, Zavala testified that he delivered "about $500,000" to the Nicaraguan Democratic Union/Nicaraguan Revolutionary Armed Forces (UDN/FARN) headed by Fernando "El Negro" Chamorro, who worked closely with John Hull. Chamorro was later chosen by Ollie North to lead the "southern front" and work, with Bob Owen, on a unified strategy for Contras based in Costa Rica.
The key figure in the "frogman" case was Nicaraguan expatriate, Norwin Meneses-Cantero, the brother of the former Managuan police chief under Somoza. In a DEA report, dated 6 February 1984, Meneses-Cantero is described as "the apparent head of a criminal organization responsible for smuggling kilogram quantities of cocaine into the United States". The "Examiner", on 23 June 1986, reported that Meneses-Cantero bought a condominium in Miami for FDN military chief, Enrique Bermudez, and appeared at a 1984 Contra fundraiser in San Francisco with Contra leader, Adolfo Calero. The sealed "frogman" papers also reveal that when Nicaraguan Contra supporter, Horacio Periera, was tried and convicted on narcotic charges, the Costa Rican government having produced transcripts of tapped conversations between Periera and Juan Sebastian Gonzales Mendiola, a close associate of John Hull. According to CBS News, on 12 July 1986, "in the conversations, the men discuss large amounts of cocaine they are sending to the US. The wire-tapped phone calls show the drug dealers have ties to the highest level of leadership in Costa Rica."
Apart from the Florida "air bridge", cocaine was also smuggled into the US from John Hull's ranch through two Miami-based seafood import companies, Mr. Shrimp and Ocean Hunter Inc. owned by Francisco "Paco" Chanes. In 1985, Chanes and one of his associates, Moises Dagoberto Nunez, received $231,587 of a $27 million "humanitarian aid" package, paid by the NHAO to a Costa Rican shrimp firm called Frigorificos de Puntarenas, a subsidiary of Ocean Hunter Inc. Some of this cash later turned up in bank accounts in Israel and South Korea, belonging to individuals supplying arms to the Contras. In February 1986, the NHAO signed a contract for $97,000 with Michael Palmer, vice-president of Vortex, an air-freight company, to ship the "humanitarian package", almost ten months after Palmer received a three-month jail sentence in Colombia on drug-related charges. On 19 June 1986, four months after signing the NHAO contract, Palmer was indicted on charges of conspiracy and drug possession, specifically in relation to his role in an operation which successfully smuggled 1,000 tons of marijuana from Colombia to the US between 1977 and 1986. In September 1987, Palmer escaped arrest in a joint DEA/FBI "sting" involving cocaine and marijuana valued at more than $40 million, from Colombia to Michigan.
The CIA also used Alan Hyde, a Honduran businessman, to transport guns by sea from mid-1987 to December 1988, despite a 1984 Defense Department attache report which described Hyde as "making much money dealing in 'white gold' i.e. cocaine". According to a 1985 CIA cable, Hyde claimed he had a US Customs Service agent "in his pocket" and "friends in Cosa Nostra", and, in a July 1987 CIA cable, reported that the US Coast Guard had placed three ships owned by Hyde on alert lists. Six years later, a 1993 CIA cable discouraged DEA efforts against Hyde because "his connection to the CIA is well documented and could prove difficult in the prosecution stage". According to the Hitz report, there is no evidence that the CIA told the FBI, the DEA, or US Customs that it was using Mr. Hyde.
The CIA/NSC Washington-based axis was fairly ruthless in dealing with "the opposition" as illustrated by the case of Barry Seal, a former TWA pilot busted by the DEA for cocaine trafficking in 1981. Seal agreed to work undercover for the DEA in return for leniency. During the following three years, he flew 50 trips to Colombia, Panama and Costa Rica. By 1984, Seal had penetrated the highest levels of the Medellin cartel in what the DEA later described "the biggest and most promising drug investigation in history". By this time, Seal was using small agricultural airstrips in southern Nicaragua to refuel, without the knowledge of the Sandinista Government in Managua, and had had a number of meetings with Pablo Escobar, who was temporarily living near the Costa Rican border, having fled Colombia when Medellin gunmen murdered the country's justice minister. When the CIA learned of the DEA operation, and the Nicaraguan "connection", the Company decided that the information should be used to influence Congress to support aid for the Contras.
In June 1984, during a meeting with Oliver North in the White House, the DEA assistant administrator, Frank Montestero, refused to release photographs of Seal and his plane refueling in Nicaragua. Within days, on 17 June 1984, a report appeared in the "Washington Times" claiming the DEA had developed evidence that "a number of highly placed Nicaraguan officials", including Interior Minister Thomas Borge and Defense Minister Humberto Ortega, were involved in a drug smuggling ring supervised by the KGB. The right-wing newspaper also claimed that the DEA information came from "a highly placed informer". The FBI later concluded that the newspaper report was based on classified information leaked by Oliver North. The DEA immediately pulled Seal, ended its three-year investigation, and told the CIA that allegations about Nicaraguan ministers were untrue. However, less than two years later, on 16 March 1986, President Reagan, in a televised speech and picture-show, repeated the newspaper's false allegations, just prior to another Contra-aid vote by Congress.
Persuaded by what the "LA Weekly" (September/October 1988) described as "the most dramatic disinformation campaign ever perpetrated on the American people", Congress reversed its ban on aid and approved $100 million in military assistance. Within a year of North's leaking details of the DEA investigation, Barry Seal was murdered because he had become a threat to CIA-sanctioned drug operations, and his personal belongings were seized by the FBI. Details of the White House betrayal of Barry Seal emerged during House Crime sub-committee hearings in 1988, chaired by Democrat Rep. William Hughes. DEA agent, Ernst Jacobsen, told the committee that the agency had lost the opportunity to arrest the leaders of the Medellin cartel because North leaked details of "the most significant investigation in DEA history". He added "Mr. Seal was so well entrenched in the cartel, they were going to show him all their assets in the United States, all their storage areas in Georgia and Florida. They were going to show him a 40,000 acre ranch in the Yucatan, Mexico, where they stored cocaine and from where they would fly it into the United States in small aircraft, four or five hundred 'keys' at a time. They were going to show him their whole operation. That's the first thing. The second thing is that Mr. Seal had agreed to get all the cartel members at one place where they could be arrested. And we were in the process of doing that when the storm broke".
The CIA had allies on the 1988 Senate Intelligence Committee, according to the IG report, including Mr. Hitz's successor as IG, L. Britt Snider, and the present CIA Director, George Tenet, both of whom were "not taken by the topic" and were "very frustrated" by the tasking from Senator John Kerry (D- Mass) and Senator Claiborne Pell (D-RI) who were demanding that the CIA chief liaison with Congress, John Helgerson, answer questions on alleged Contra drug activity. According to the report, Helgerson claimed not to recall "a concentrated effort by the agency to get to the bottom of the allegations of narcotics trafficking". Mr. Helgerson pointedly told Senators Kerry and Pell that the CIA "was in the intelligence business not law enforcement".
Another key player in the CIA-Contra-cocaine affair was Ramon Milian-Rodriguez, a Santa Clara University graduate employed by the CIA to carry funds to right-wing politicians, including Panamanian dictator, Manual Noriega. In February 1988 a US federal grand jury indicted Noriega for accepting $5.4 million in cartel payoffs in exchange for "utilizing his position to sell the county of Panama to drug traffickers". Milian- Rodriguez also worked as an accountant and money launderer for Pablo Escobar. In an interview on CBS Newsday, 28 June 1987, he claimed that, from 1982 to 1985, he arranged to have $10 million of Colombian narcotics profits distributed to Reagan's anti-Communist Contra allies through a network of couriers in Miami, Costa Rica, Guatemala and Honduras. The gesture was intended to win friends and influence policy on Capitol Hill, according to Milian-Rodriguez. "The cartel figured it was buying a little friendship, they thought they were going to buy some goodwill and take a little heat off them. They figured maybe the CIA or the DEA would not screw around so much" was how a member of the Senate Foreign Relations sub-committee, who questioned Milian-Rodriguez, in spring 1987, described the donation.
Milian-Rodriguez also stated the "financial pipeline" was managed by veteran CIA agent, Felix Rodriguez, who arranged the money "drops". Rodriguez worked closely with Oliver North, coordinating the supply of weapons and medical equipment from Ilopango airbase into Nicaragua. He received assistance from George Bush, and met the US vice-president on three occasions to discuss the Contra "war effort." Between 1984 and 1986, an estimated 50 to 100 CIA-arranged flights took off or landed at US airports without inspection by the US Customs Service, the "Boston Globe" claimed in April 1987, while CBS reported that the CIA had intervened to secure the release of Vortex boss, Michael Palmer, when he was detained by Customs officials in Miami after arriving on a flight from a South American.
While the Reagan administration, through Attorney General Edwin Meese and US Attorney in Miami, Leon Kellner, deliberately intervened to prevent an investigation into illicit Contra-coke operations out of Miami, the Senate and House Select Committee on the Iran/Contra links was also turning a blind eye to the cocaine trafficking aspects of the affair. In July 1988, the House Committee staff investigator, Robert Bermingham, in a secret memo to co-chairman, Senator Daniel Inouye, stated that "an exhaustive investigation ... had produced no evidence of Contra involvement in drug activity". The chief investigator for the Senate Select Committee was Thomas Polgar, former CIA Chief of Station Saigon, and later CoS Mexico City until he retired in 1978 to work as a security consultant for Nicaraguan dictator, Anastacio Somoza, through the Miami-based company, Palumbo and Wilkinson (both names of former CIA officers) and later as consultant to George Bush's Task Force on Combatting Terrorism.
The Hitz report has been described to "Intelligence" by a source as "a damage limitation exercise when there's no damage left to be done". Indeed, the damage to inner city communities from the flood of cocaine has been considerable, yet the IG report still fails to fully answer many questions posed by the Washington-based research group, the National Security Archive (NSA). In a memo (dated 6 July 1987) to the Select Committee on Narcotics Abuse and Control, the NSA asked: "Were the field officers in Central America, the Caribbean and the US from the various agencies (DEA, Customs, Bureau of Alcohol, Tobacco and Firearms, FBI) with jurisdiction over drug violations, aware of the Contra-drug allegations? If not, why not? If they were aware, where are their reports to their superiors? How did law enforcement officers not know or report these allegations when Robert Owen clearly knew and reported them to Oliver North? What, if any, investigations were ever undertaken into these allegations? What were the results of these investigations, if any? Were law enforcement officers ever directed not to investigate? What contacts, if any, did law enforcement officers have with other federal agencies, including the intelligence community, regarding these Contra-drug allegations? Was the intelligence community involved in investigating these allegations?"
The former acting director of the CIA in the late 1980s, Robert Gates -- who withdrew his nomination for the top job in 1987 amid questions about his role in the Iran/Contra affair -- stated in a 1987 memo to the head of the CIA's covert operations, that it was "absolutely imperative" that the agency avoid doing business with Central American drug traffickers. He later claimed that he regarded the Contra/cocaine allegations as a "critical problem" for the CIA, however the IG report found that Gates' (face-saving) memo had limited circulation within Langley, and concluded that the "guns for drugs" policy was "a matter of self-preservation" not only for the Contra program, but also for the CIA.
NSC duplicity, CIA official silence and general media complacency, which facilitated the "guns for drugs" operation during the Reagan years, has been replaced by a revisionist view of history. On 7 November, a CNN report on the aftermath of Hurricane Mitch, described the Aquacate air base in Honduras (used as a cocaine transshipment facility) as having been "built by Ronald Reagan in 1983 to help fight the spread of Communism in Central America". No mention of the Contras who prosecuted the war or the drugs that helped supply the firepower.
The body count has begun south of the border, and while the Company may not be involved this time, someone has begun to tidy up loose ends, with the murder of Helmer Pacho Herrera, one of the most ruthless Cali cartel bosses since the late 1970s. A business associate of Pablo Escobar for almost a decade, Herrera -- known as "the man of a thousand faces" because of frequent plastic surgery -- died while playing football earlier this month in the prison where he has been held since 1996. Herrera joined the Cali cartel in the mid- 1980s after a dispute with Escobar and was believed to have ordered a car-bomb attack on his former business partner's home in 1988. Two years later, Escobar's gunmen shot dead 17 of Herrera's bodyguards at a remote Colombia farm. Herrera escaped and launched a three-year manhunt for Escobar, which ended with his death on 2 December 1993. Herrera was the last of the seven Cali bosses taken out of circulation. According to sources in Bogota, he had begun to incriminate former associates in an effort to win lenient sentencing, when a well- dressed assassin embraced him on the playing field and shot him six times in the head.
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Intelligence, N. 88, 16 November 1998, p. 9
USA
NSA CHANGES BOSSES AS ECHELON GOES TO CONGRESS
According to Bill Gertz in the "Washington Times", NSA Director, Lieut. Gen. Ken Minihan (USAF), will retire in March, and the DIA Director, Lieut. Gen. Patrick Hughes (USA), will probably retire in February. Also, Major Gen. John Casciano, USAF deputy for intelligence, will either retire or move up. The DDCI position is occupied by Lieut. Gen. Gordon (USAF) who has been in place only a year. Leading contender for NSA Director, according to the report, is Lieut. Gen. Claudia Kennedy, Army DCSINT, who is being backed by the White House and Hillary Rodham Clinton. If Kennedy becomes NSA chief, the Director and the Deputy Director -- Barbara McNamara -- will be women. Other NSA contenders are Rear Admiral Tom Lowell Jacoby, DNI, and Rear Admiral Tom Wilson, JCS(DIA)/J2. Gertz says Minihan requested a one-year extension at NSA but was turned down, and that DIA Director Hughes was not informed about planning for recent cruise missile strikes in Sudan and Afghanistan, a claim that has been denied elsewhere in the press.
A Washington civil liberties organization, the Free Congress Foundation (FCF), has sent a detailed report on NSA's Echelon global electronic eavesdropping system to Congress in the hope that it will scrutinize Echelon as the European Parliament recently did, although the European venture looked like a flop. (3 reports) The report, "Echelon - America's Spy in the Sky", details the known history and workings of the agency's global electronic surveillance system. Patrick S. Poole, author of the report, is deputy director of the FCF. Echelon is controlled by NSA and is operated in conjunction with the British Government Communications Headquarters (GCHQ), the Canadian Communications Security Establishment (CSE), the Australian Defense Security Directorate (DSD), and the New Zealand General Communications Security Bureau (GCSB). These organizations are bound together under the secret 1948 UKUSA agreement. The report described eavesdropping systems at Menwith Hill in England, including Steeplebush, Runway, Rutley, Pusher, Moonpenny, Knobsticks, GT-6, Troutman, Ultrapure, Totaliser, Silverweed, and Ruckus. The report also goes over known eavesdropping campaigns in the US in detail, including Shamrock and Chaos.
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