FILIPINO BANKERS: MARCOS PLANNED REAGAN PAYMENTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00965R000605740055-3
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: May 18, 2012
• Sequence Number: 55
• Publication Date: March 13, 1986
• Content Type: OPEN SOURCE

STAT
~ Declassified in Part -Sanitized Copy Approved for Release 2012/05/18 :CIA-RDP90-009658000605740055-3
PHIL.4DELPHIti IvQUIRER [~~` ~~~~'
13 March 1986 f L
? ? ?
1 ipino a ens:
Marcos planned
Reagan payments
By Lewis M. Simons
Knight-Ridden News Serviu
MANILA, Philippines -Ferdinand
E. Marcos had a complex plan to gain
U.S. government favor that included
donating tens of millions of dollars
to the campaigns of President Rea-
gan and Vice President Bush and
arranging "sweetheart" business
deals with close Reagan associates, a
group of Filipino international bank-
ers and attorneys has alleged.
The alle ations, which several U.S.
officia s strong y enre ,are con-
tained in a Marc~memo~rom tTie
bankers that was offered on March 8
to a newly formed Philippine govern-
ment commission tractn tie over-
seas investments o arcos an the
former presi~nt`s assoctates.
The banking group, which has in-
sisted on anonymity for its 14 mem-
bers except for one spokesman, of-
fered no documentation or other
support for its contentions.
In many cases, the memo does-not
make clear whether the allegations
had been merely planned or were
carried out. The group has asked for
access to documents recovered from
the presidential palace to prove its
accusations.
Jovito Salonga, chairman of the
commission seeking to recover over-
seas Marcos assets valued at as much
as S10 billion, said the commission
had not yet acted on the charges.
Another commission source said that
"the report contains some useful
leads ...and we have to take it from
there."
Antonio Gatmaitan, spokesman for
the bankers, said the group sub-
mitted the memo "because of con-
cern that the Reagan administration
may protect bfarcos to the extent
that recovery of hidden wealth in
the U.S. could be blocked."
The U.S: government provided pas-
sage to Hawaii for Marcos and about
90 others, including members of his
family, associates and staff members,
when his regime fell last month.
Since then, the administration has
said that Philippine government re-
quests for the freezing or recovery of
Marcos assets must be handled in the.
courts.
According to the memo, nearly $60
million was to be funneled to the
Reagan-Bush campaigns in 1980 and
1984 through a variety of conduits.
The memo specifies that "57 million
was to be contributed to the Reagan-
Bush campaign in 1980; $10 million
was to be contributed to various can?
didates in the 1982 off-year U.S. elec?
lions; $50 million was to be distrib-
uted to the various committees and
groups created to help Reagan and-
Bush" in 1984.
Under U.S. election law, it is illegal
for a presidential or congressional
candidate .to accept contributions
from a foreigner. It is also illegal for
any contributor to launder money
through someone else, in effect hid?
ing the real source of the donation.
The law sets a 51,000-perelection
limit on the amount any individual
can contribute to a candidate, and a
55,000 limit for political action com-
mittees.
The memo also says that Marcos
instructe rs a ents o s s ema t-
call tar et an cu ovate e
olitical interests an ersonalities,"
inclu in trector t tam a?
sey, ormer nattona securtt adviser
Richard V. Al en, en. au axa t
(R., Nev.), Secretar of State Geor e
P. Shultz an cretary o e ense
as ar ern r er.
n as tngton, several U.S. offi?
cials named in the memo dismissed
the allegations as untrue and far-
fetched.
"I've never heard anything about
it," said Edward J. Rollins, who was
White House political director before
managing the 1984 Reagan-Bush cam?
paign. "Where it's preposterous is
that the most you can give is 55,000.
Prominent Filipino-Americans may
have contributed to Republican can?
didates - [just don't know. There
certainly wasn't anything orches-
trated.
"And there never were any over-.
lures made from Marcos or his peo-
ple, even when Marcos was here vis-
iting. Frequently when world
leaders are here, their political peo-
ple would make a courtesy call. But
they didn't do that. This is just ab-
surd."
White House spokesman Larry
Speakes said that he was not aware of
the allegations, but that the Reagan-
Bush campaign followed all U.S. cam-
paign laws.
Washington lawyer Dean Burch,
Bush's personal attorney, also denied
the allegations. "Just as a logical
matter, if you. were doing anything
like that, you'd want the credit,"
Burch said. "You wouldn't get any
because George has no idea what his
investments are, and neither do [.
That's the nature of a blind trust."
The memo says that in addition to
contributing to the Bush campaign,
former Energy Minister Geronimo
Velasco was to establish a business
relationship with three companies in
which Bush held substantial inter-
ests - Overbey Oil Development
Corp., Zapata Petroleum Corp. -and.
Zapata Offshore Co. It was to be done
through the Philippine National Oil
Co. and its foreign subsidiaries, the
memo said.
Tom Loranger, a spokesman for
Laxalt, said there was "absolutely no
substance whatsoever to this pur?
ported memo's references about Sen.
Laxalt." The memo said that Marcos
associate Roberto Benedicto, repre-
senting the Manila Bay Casino,
sought the counsel of Laxalt in con-
nection with the intended purchase
of a-Las Vegas casino operation for
Filipino interests.
The memo also says that from 1976
to 1981, a to Phili ine tom an
en a e t e le al services of William
asey, who is now CIA director. and
that Roman Cruz Jr. eneaeed the
services of Bechtel Corv. as proiect
managers for the Manila Hotel Corp.
end other proiects in order to widen
the avenues of contact between Mar-
cos and former Bechtel executives
S u tz an ern erger.
Knight-Ridden correspondents Pete.
Carey and Carl M. Cannon contrib-
uted to this report.
Declassified in Part -Sanitized Copy Approved for Release 2012/05/18 :CIA-RDP90-009658000605740055-3