COUNTERSPY: SECRET WORLD BANK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00845R000100140008-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 60
• Document Creation Date: December 22, 2016
• Document Release Date: June 15, 2010
• Sequence Number: 8
• Publication Date: April 1, 1981
• Content Type: OPEN SOURCE

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COUNTER i3y
The Magazine For People Who Need To Know
Volume 5 Number 2 $2
Secret World Bank
Document on Marcos
AFL-CIO and Poland
U.S. Bases in Oman
Geri. Haig and RCMP
George Bush
CIA in Africa
Feb.-April 1981
aw
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Editorial
As we go to press, tax lawyer William J. er. (The role of international lending in-
Casey has just been nominated to be CIA stitutions in working for that aim is de-
Director. In 1969, Casey ran the "Citizens scribed in one article in this issue which
Committee" which ardently supported is based on a confidential World Bank doc-
Richard Nixon's war in Indochina and ument.)
bought full page newspaper ads promoting The CIA under Casey will continue to
the war. In return, Nixon appointed Casey push or its own Official Secrets Act
chairperson of the U.S. Securities and Ex- which was not passed by Congress before it
change Commission (SEC). While at the SEC, went into recess in December 1980. The
Casey gave the SEC's files on I.T.& T. to CIA's efforts in months to come can only
the Justice Department which, in turn, de- benefit from the presence of Ronald Reagan
layed and neutralized a Congressional in- and George Bush in the White House. The
vestigation of I.T.& T. bribes to elector- nature of the CIA as an intrinsically un-
al campaigns. democratic institution is nothing new.
In late 1972, Richard Allen, who is now This was recognized even in a Congressio-
Ronald Reagan's national security advisor, nal report of July 14, 1966:
arranged a meeting between Casey and "The general argument is now clear: left
Howard Cerny, an attorney for stockswin- to itself, the CIA is the most dangerous
dler Robert Vesco. At the time, Vesco was agency in the United States Government..
paying Allen $10,000 a month, and Cerny's If the American people are against co-
meeting with Casey was to convince him vert operations, for instance, let them
that Vesco was "an honorable fellow". (See rise y and say so (F,mphasis added)...
Mother Jones, Sept.-Oct. 1980) On the same No issue is more basic than whether we
day that the meeting took place Vesco con- can preserve rule by 'consent of the
tributed $200,000 to Nixon's reelection governed' in today's troubled world...
campaign. His contribution came more than ILL is imperative that we meet the chaZ-
a year after the SEC had begun to investi- lenge, or American democracy will either
gate Vesco's financial dealings. be rapidly destroyed or slowly whittled
Described by Newsweek as "gruff, sham:- away."
bling and surprisingly inarticulate" (12/ The only point that needs to be added is
22/80), Casey was also the chairperson of that to "rise up" against covert opera-
the Export-Import Bank. The appointment of tions is not enough since the CIA is just
a banker and economic expert to head the one part of an economic and political sys-
CIA comes as no surprise. After all, a tem, which history shows is far from in-
main task of the CIA is to further the in- vincible. As long as this system dominates
terests of U.S. corporations and banks. there will be "need" for the CIA and co-
U.S. intelligence agencies, banks, and vert operations. Radical transformation of
corporations work hand-in-glove to promote the present economic and social system is
their common interest of strengthening and the only way to end covert operations.
expanding U.S. corporate and military pow-
Contents
Secret World Bank Document on Marcos:
An Alliance Coming Apart ?............30
Introducing George Bush ................ 3 AIFLD's Corporate Intervention
Gen. Haig and RCMP in Colombia ........................... 38
Attack Canadian Labor .................. 7 Australia: A Nice U.S. Colony ......... 42
AFL-CIO: Trojan Horse Soldiers of White Capitalism .......... 46
in Polish Unions ...................... 10
CIA in Africa ......................... 50
U.S. Hypocrisy at Madrid Conference... 20
CIA Updates ........................... 53
Buying Oman ........................... 22 COINTELPRO 1980:
Banking in and on Bahrain ............. 27 the Felt/Miller Trial ................. 56
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Introducing George Bush by Konrad Ege
(Ed. note: Konrad Ege is do independen* why so many former intelligence officers
journalist. He has worked with CounterSpy were working for Bush: "I firmly believe
for over two years.) we wouldn't be in the trouble we're in to-
George Bush: a former CIA Director be- day in Iran.and Afghanistan if George Bush
comes Vice President. This might not be had stayed at the CIA..." Referring to
Bush's candidacy .for President, .Ray Cline
quite as drastic as in Brazil where Joao added: "It's panned out almost too good to
Baptista Figueiredo, the former head of be true, ... the country is waking up just
the national intelligence service actually in time for George's candidacy." 3
became president. However, George Bush's
vice presidency deserves serious scrutiny As it turned out, it was to good to be
true,,,and Bilsh had to concede defeat in
particularly since Bush, in his presiden- the presidential race, but he was able to
tial campaign, tried to capitalize on his
berm as CIA Director in the Ford adminis- satisfy his hunger for power when Ronald
Oration. The following article will high- Reagan offered him the number 2 position -
light some aspects of Bush's career in the even though he had to compromise on a num-
light
and in the Nixon administration. beY of campaign issues to be accepted.
Bush is "the only candidate any of us Bush will have, plenty of support in the
the agency an Reagan,administration for strengthening
can remember who has made
the CIA
~ in the
issue," said Jack Coakley, a retired De- CIA, but a former CIA Director "new
White House is certain to open up fense Intelligence Agency (DIA) officer possibilities" for the CIA, especially
and past executive director of the Associ- since Bush has already appointed a number
ation of Former Intelligence' Officers of former CIA officers to his personal
(AFIO) of Bush's presidential campaign. staff. His chief of staff is retired
"He's the guy who raised the 11, Admiral Daniel J. Murphy, who served as
community to a national campaign issue. Bush's deputy when he was CIA Director.
In turn, Bush received strong support from Murphy's responsibility was supervision of
a number of former intelligence officers. the intelligence "community" staff and co-
The Washington Post commented that "no ordination of all intelligence agencies.
presidential campaign in recent memory - To accept the White House job under Bush,
perhaps ever - has 'attracted as much sup- Murphy left a position in the Pentagon
port from the. intelligence community as where he was chief intelligence aide for
the campaign of former CIA director former Secretary of Defense Harold Brown.
Bush " Z Murphy quit his Pentagon job in November
The former inteiligence officers who in order to have enough time to personally
flocked to Bush's campaign and held lead- hire the rest of Bush's staff. In addi-
ing positions in it included Ray Cline, tion, Bush's executive secretary at the
CIA Chief of Station in Taiwan from 1958 CIA, Jenifer A. Fitzgerald, has already
to 1962 and CIA Deputy Director for Intel- been named as Bush's appointments secre-
ligence from 1962 to 1966; Lt. Gen. Sam V. tary.4
Wilson, a former director of the DIA; Lt. . George Bush was CIA Director for only a
Gen. Harold A. Aaron, former deputy direc- short time - in 1976, the last year of the
tor of the DIA; Henry Knoche, acting di- Gerald Ford administration. His appoint-
rector of the CIA after Bush was fired; went came at a time when the CIA was being
Robert Gambino (he left his job as CIA di- publicly scrutinized; and, a number of il-
rector of security to become Bush s body- legal CIA activities had been revealed.
guard), and Gen. Richard Stillwell,'once Bush was to succeed William Colby, who had
CIA chief of covert operations in the Far been fired by President Ford. One impor-
East. Retired CIA officers were also in- tant reason for his dismissal was that ,
fluential in local organizing efforts for Colby had "been too cooperative with the
Bush in New Hampshire, Tennesee, Virginia House and Senate committee investigating
and Florida. Jon Thomas, who served in the the CIA." 5 Bush was to correct Colby's
CIA's clandestine division in Spain while "mistake" of being "too open."
-Bush was,CIA Director, summed up why he Bush's nomination hearings on December
.joined the Bush campaign in Tennesee and 15 and 16, 1975 were conducted in a very
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friendly atmosphere. Bush drew praise from, Hart: "And that is the kind of world you
almost all the Senators in the Armed Ser- want to prepetuate ?"
vices Committee, including Strom Thurmond, Bush: "No, but... I have a concern about
who lauded Bush as "well qualified" for the world as we really see it.?.. I think
the CIA job because of his "intellectual we have a certain commitment to morality
integrity,... honesty... and personal but I do not think we should close the
qualities." 6 However, in the course of door forever on covert activity which is
the hearing Bush had to answer a few tough where this discussion appears to logically
questions put to him by Senator Gary Hart lead."
(D=Co.) who asked him outright: "How do Hart: "There are all kinds of covert ac-
you feel about assassinations ?" Bush re- tivity. I am specifying attempts to over-
.plied: "I find them morally offensive.'t throw governments of other countries."
Hart continued to query Bush. "What about Bush: "And I said I would not suggest
supporting and promoting military coup that we rule that out forever. I suggest
d'etats in various countries around the we tread very, very carefully. And I have
world ?" Bush said that he could not tell given you [they example... of a Hitler." 8
Hart, and he didn't think he should, "that Bush was referring to an earlier state-
there would never be any support for a ment where he had used Hitler as an exam-
coup d'etat" and added: ": . in other ple of someone "who had been democratical-
words, I cannot tell you I cannot con- ' ly installed," and where covert operations
ceive of a situation where I would not could be useful and morally justifiable to
support such action." remove him. Bush concluded: "I think it
. When questioned what he thought about makes that point that we should not rule
supporting the'overthrow of a constitu- out that kind of thing.".9
tionally elected government, Bush con Using Hitler as an example of a "demo-
ceded: "I think we should tread very care- cratically" installed ruler illustrates
fully on governments that are constitu- Bush's understanding of democracy. At the
tionally elected. This is what we are try- time Hitler was given almost dictatorial
ing to encourage around the world and I powers by the parliament, a number of mem-
feel strongly about it." Hart went on: bers of parliament who opposed him had al-
"What about paramilitary operations, pro- ready been imprisoned,. and the vote was
viding funds and arms to establish a gov- taken with stormtroopers filling the hall-
ernment that we wanted ?" Bush was not ways of the building where the parliament
willing to rule out that option either: "I met and lining the walls of the meeting
can see. under certain circumstances where room. Before that, Hitler had never won
that could be in the interest of our- the majority of the votes of the German
allies, the best interest of the free electorate.
world." Bush conceded that he would have As CIA Director, George Bush had other
"a little more difficulty" in justifying opportunities to demonstrate his under-
payments to political parties in other standing about how democracy is supposed
countries, but again, added: "I would not to work. In a September 1976 speech, Bush.
make a clear and definite statement wheh- bemoaned that while no one in Congress is
er that ever or never should be done." campaigning any more "against strong in-
Later on in the hearing, Senator Hart telligence," Congress still is a continu-
got back to Bush's opinion that assassina- ing problem for the CIA, because the CIA
Lions are "morally offensive." Using the has to inform seven committees about co-
example of the assassination of General vert operations in a "timely fashion." 10
Schneider in Chile in 1973, Hart pointed Only one month after he was.in office,
out that the U.S. government has,"encour- Bush announced a new policy defining CIA
aged or supported coup d'etat attempts relations with the media. The guidelines
that have resulted in assassinations of were as follows:
foreign leaders... The point I'[am] making "CIA will not enter into any paid or
is you cannot coma out against assassina- contractual relationship with any full-
tions and leave opal the possibility of time or part-time correspondent accred-
covert'operations that may.lead to assas- ited by any U.B. news service, newspa-
sinations," After that, the following di- per, periodical, radio or television
alogue between Hart and Bush took place. network'or station. As soon as feasible,
Bush: "It happens to be the way the the Agency will bring existing relation-
world appears..." ships with individuals in these groups
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into conformity with this new policy."il was a complete failure and created immense
These restrictions might look good at a suffering for millions and the "disengage-,
first glance, but a closer examination ment" had its embarrassments, there was
shows that George Bush's guidelines, while one thing CIA Director George Bush wanted
countering certain criticism, excluded a to ensure: that the morale of the agency
large number of journalists. Freelance re- would be boosted. He ordered the Angola
porters and writers were not covered, as Taskforce to produce recommendations for
well as journalists working for foreign. awards for everyone who had been involved.
media outlets, including U.S. journalists. "The rationale was, although things hadn't
During his term (he was replaced by gone very well, we had worked hard and the
Stansfield Turner in 1977), George Bush defeat was not our fault. Medals and
achieved certain important objectives. In awards would bolster morale." It took the
the words of Jon Thomas: "When Bush became task force weeks to write the recommenda-
director, the agency had been dragged tions for 26 medals and certificates, 140
across the coals in all directions for letters of appreciation, and one meritori-
several years.' There was disastrously low ous salary increase.
morale, and our efficiency had fallen off. In Bush's opinion, the mercenary war in
... Bush turned it around in about 90 Angola was "moral": "I believe that we
days." 12 have always had a moral foreign policy....
One of Bush's first tasks as CIA Direc- I think we've been generous. I think we've
tor was to end the CIA's mercenary war in been fair. I think we've been extraordi-
Angola. Agents and officers had to be narily compassionate to countries around
withdrawn, and a lot of people had to be , the world.".13 To George Bush, the U.S.
paid off. The CIA made very generous pay- war in Vietnam was also "moral". "We had
ments to the people who were involved in Vietnam. It divided us. We're asked to ac-
the Angola war. John Stockwell, who was cept a rather revisionist view and impres-
the head of the CIA's Angola Task Force sion of the United States and of our pur-
during the time, described who got how pose. What's happened in Vietnam today has
much in his book In Search of Enemies. made our purpose more clear, less uncer-
President Sese Sekk Mobutu of Zaire got tain. We got out of Vietnam. Vietnam in-
$600,000 for one of his planes that was deed is unified. ... They've tthe Vietnam-
destroyed but managed to pocket another ese] taken over Cambodia and they've taken
$1,137,700 which was intended for FNLA over.Laos and they've brutalized the eth-
and UNITA leaders Holden Roberto and Jonas nic Chinese in their own country and we
Savimbi, respectively. A total of $2 mil-, realize that- this isn't a nice, peace-lov-
lion was to be given to UNITA, $540,700 of ing nation... it's something very differ-
it for "continuing UNITA activities." The ent." 14
original Portuguese Angolan commandos who Another very important factor in George
had fought in the northern part of the Bush's term as CIA Director was a study he
country "were compensated as though they commissioned on the capabilities and in-
had been on contract as CIA mercenaries tentions of the Soviet Union. The study
throughout the war." group included former head of the DIA,
And there were other CIA mercenaries who Gen. Daniel Graham and was chaired by
had to be paid: "...pilots, boat crews, Richard Pipes, a Harvard University pro-
and propaganda specialists began to line fessor. The study group's report has been
up for bonuses and plane tickets to leave described as a "sharp departure from what
the country." Santos Castro, a mercenary had been the Washington orthodoxy on the
recruiter who was supposed to get 300 men subject of Soviet intentions throughout
for the CIA but in fact recruited only 13 the Kennedy-Johnson and Kissinger areas.
managed to convince the CIA that he had In essence, it said the Soviet Union was
recruited 126 men who had all quit their aiming not at parity with the United
jobs while preparing to go to Angola. States, but at superiority." 15'The logi-,
Therefore, Castro argued, they had to be cal conclusion of such a thesis is that
paid "as though they had fought in Angola the Soviet Union is aiming for domination
for the full five months." Stockwell wrote over the U.S. and, in order to achieve
there was no proof of his claims but "the that, for war. Therefore, there is no use
agency's reputation was at stake"-and for the U.S. to enter into any arms limi-
Castro was paid $243,600. tation agreements with the Soviet Union
While the CIA's mercenary war in Angola until the U.S. becomes number one.
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A recently published book, Assassination resentment by many Texans of "his close
on Embassy Row by John Dinges and Saul ties to Nixon and then Vice-President
Landau, reports another outstanding event Spiro. T. Agnew."18 When Bush was confron-
in George Bush's CIA career. According to ted with the evidence of Nixon's contri-
this book, Bush played an important role bution to his campaign produced by the Los
in the cover-up of the assassination of Angeles Times investigation, he at first
Nonni Moffitt and Orlando Letelier on refused to comment. The next day, he stat-'
September 21, 1976. Bush knew before the ed "my record is clear" and denied that he
bombing of Letelier'.s car that the Chilean had failed to report most of the Townhouse
secret police DINA had sent a team to Fund contribution. However,'the Los Ange-
Washington on a "covert mission." Bush did les Times pointed out that "the explana-
not disclose this information to investi- tion offered by Bush... did not appear to
gators of the assassination. On the con- be supported 'by his campaign data on file
trary, he told the Justice Department in Austin, Texas." 19 The Times presented
that DINA was not involved, and the CIA several examples of Townhouse contribu-
leaked stories to the press saying that tions (including $40,000 that went to pay
Letelier might have been the target of the an advertising firm that had done work for
Left, thus actively participating in the Bush's campaign) that were'not reported.20
cover-up. It appears that even that incident did
One aspect of Bush's career he didn't not harm Bush's reputation signifiantly -
talk about much .during the presidential - at least not within the Republican Party.
election campaign was his close relation- The chief incident for which Bush was at-
ship with the Nixon administration. Bush tacked during his campaign was his past
was the Permanent U.S. Representative to membership in the Trilateral Commission.
the United Nations from March, 1971 to The extreme right of his party considers
January, 1973. As such, he was a regular the Trilateral Commission "liberal" and
participant in all Cabinet meetings at the "internationalist".
time. In January, 1973 he was appointed George Bush likes to portray himself as
Chairperson of the Republican National an idealist, as someone with a sense of
Committee and served in that position dur- responsibility for his country. He talks
ing the height of the Watergate scandal. about morale and manages to portray him-
Senator Lowell Weicker (R-Ct.) says Bush self as a "Mr. Nice Guy". In this way, he
considered destroying certain material was able to gloss over dangerous state-
that would have been embarrassing for. him- ments such as the idea that a nuclear war
self, Richard Nixon, and over 30 other, between the U.S. and the Soviet Union is.
fellow Republicans. The records Weicker is winnable. Bush estimates that about 5 per-
referring to were about the "Townhouse cent of the U.S. population, could survive
Fund", a secret campaign fund run by ' such a war and declare themselves winners.
Richard Nixon's White House. Bush denies Bush obviously represents the interests of
he did anything wrong, and-called that 5. percent who have enough money to
Weicker's statements "an absolute lie." 16 make sure that they will be the ones to
Bush himself was a beneficiary of the survive.
Townhouse Fund. When he was running for
Senator in Texas in 1970 (he was defeated)
he received $106,000 from the Fund as one
of Nixon's "favorite candidates".17 Most FOOTNOTES
of\the money was given,to Bush in cash and
was not disclosed as required by Texas 1) Washington Post (WP), 3/1/80, p.A-2.
campaign law. While it is, not clear wheth- 2) ibid.
er Bush was actually in direct violation 3) ibid.
of the law.- which had a number of loop- 4) a 11 se, e.A-1.
5) D Dav vid Wise, The American Police State, Random House,
holes - the contribution by the Nixon con- New York', 1976, p.256. '
trolled Fund highlights once more Bush's 6) Nomination of George Bush to Be Director of Central
Intelligence, Hearing before the U.S. Senate, Committee
closeness to Richard Nixon. on Armed Services, 94th Congress, 1st session, 12/15 and
According to the Los Angeles Times, one 16/1975, p.7.
of the reasons that Bush did not disclose 7) ibid., pp.27,28.
most of the Nixon contributions at the 9) ibid ' pp 72'73
time is that there was already a certain 10) WP, 9/17/76, p.A-10.
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11) The CIA and the Media, Hearing before the U.S. House 14) ibid.
of Representatives, Subcommittee on Oversight of the 15) New Statesman, 9/5/80, p.ll.
Permanent Select Committee on Intelligence, 95th Con-
gress, 1st and 2nd sessions, 12/27-29/77; 1/4-5/78;
4/20/78; p.332.
12) cf supra, #1.
13) New Yorker, 3/3/80, p.94.
16) WP, 2/29/80, pp.A-1, A-4.
17) Los Angeles Times, 2/7/80, p.19.
18) ibid.
19) Los Angeles Times, 2/8/80, p.l.
20) ibid., p.23.
General Haig and RCMP
Attack Canadian Labor by Martha Wenger
General Alexander Haig apparently suc- John M. Oblak, a UTC technical planning
needed in explaining away his past in- . director, to a national strategic miner-
volvement with the Nixon administration to als.taskforce. Clark MacGregor, Senior
the satisfaction of Ronald Reagan who ap- Vice President for external affairs, di-
pointed him tq be U.S. Secretary of State. rected Richard Nixon's 1972 re-election
Although there has been much to-do about campaign.
Haig's more well-known past under Nixon, As important as simply reviewing the
few have sought to draw lessons about the "qualifications" of Haig and his associ-
man from his most recent job: President of ates at UTC - which after all aren't sur-
United Technologies Corporation (UTC). prising for men of their positions - is to
UTC - the third largest defense contrac- look at the corporation form the perspec-
tor in the U.S. - is a far-flung network tive of the people who work for it. The
of factories and wholly-owned subsidiar- example we will examine took place in a
ies. It produces helicopters, rocket mo- UTC factory in Canada.
tors, space equipment, airborne systems, On November 16, 1979, three women work
and military electronic systems, among ers were 'laid off from the Pratt & Whitney
other things. It ranks tenth in U.S. manu- Aircraft plant in Longeuil, Quebec (a
.facturing corporations overall, but has wholly-owned subsidiary of UTC). The women
"substantially expanded its business oper- were told that there was a surplus of
ations in foreign countries in recent workers and that their termination was
years." About 200,000 people work for UTC; effective immediately. At first glance it
46,000 of these overseas. And in Connecti- might seem to be one more case of women
cut, which the company calls "home", more being the last hired and first fired. In
people work for UTC than for anyone else. fact, the story of these particular women
Sales are expected to reach $12 billion in -proves to be an example of how corpora-
1980. tions such as Haig's UTC work hand-in-
Haig has been president of the company glove with intelligence agencies (in this
for about a year. It is "widely assumed" case the Royal Canadian Mounted Police) to
that Haig was "being groomed" to replace harass and punish workers for their polit-
UTC's number one man, Harry J. Gray, when ical beliefs, if those beliefs don't fit
he retires in 1985. (New York Times, in with the corporate capitalist system.
12/8/80). Gray welcomed Haig to the cor- Suzanne Chabot, Wendy Stevenson and Katy
poration, recognizing the obvious assets a Le Rougetel were hired in August 1979 to
prominent retired general brings to a cor- work in Plant 1 of Pratt & Whitney Air-
poration with major defense-oriented con- craft of Canada, Ltd. Two of the women
tracts. were qualified as machinists, and during
UTC boasts ties to Reagan and the right the initial three months probationary pe-
of the Republican Party even apart from riod all received good work ratings in
Haig. William Simons - of the UTC board of written reports. Days before the end of
directors - was in the running for a ,, their probation periods, on November 16,
Reagan cabinet post until he removed him- 1979, each women was unexpectedly called
self from consideration. Reagan appointed to the employment office and informed that
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