EXECUTIVE INTELLIGENCE

REVIEW December 5-11, 1978

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New Solidarity International Press Service EIR ARCHIVE n _ .A.. _ ._._ .. _ •• ., [THIS PAGE IS INTENTIONALLY BLANK] Editor-in-chief Fernando Quijano

Managing Editor Tessa DeCarlo

Contributing Editors Lyndon H. LaRouche Jr. Nancy Spannaus Criton Zoakos Christopher White

International Nora Hamerman

U.S. Report Stephen Pepper Konstantin George

Economics David Goldman

Counterintelligence Jeffrey Steinberg

Military Intelligence Paul Goldstein Europe Vivian Zoakos The Science & Technology Morris Levitt Soviet Sector big names Rachel Berthoff Middle East behind the Robert Dreyfuss

Asia Daniel Sneider death cult

Africa Douglas DeGroot

Latin America Robyn Quijano You've had your nose rubbed in every gory detail of the Dennis Small mass deaths at . The SPECIAL REPORT Law Felice Gelman featured on our cover tells the real story - who created

Press the Jones cult. how they did it, and why. Fay Sober Did you know that the in was Energy set up and operated as a drug-running base? That Jones's William Engdahl pedigree traces straight back to the CIA's infamous MK­

Production Editor Ultra LSD project? That Jones's injunction "die with Deborah Asch dignity" is being pushed as a mass cult by Ted Kennedy and the so-called hospice movement? That the whole cult Executive Intelligence Review business, from A to Z, is a British intelligence project? Our is published by New Solidarity International Press Service report. put together by Counterintelligence and Terrorism P.O. Box 1922, GPO, editor Jeffrey Steinberg and a team of expert in­ New York City, N. Y. 10001 vestigators. reveals all this and more. page 8 Subscriptions by mail for the U.S.: 3 months-$125, On our cover: the cult behind the cults - the British oligarchy's Order of 6 months-$225, St. John of Jerusalem in full regalia. 1 year-$400.

ISSN 0146-9614 © 1978 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. EXECUTIVE INTELLIGENCE IN THIS ISSUE REVIEW

Israeli intelligence taking over THI S WEEK CIA policy making Shades of 1974 ...... 5 The same voices are calling for dollar collapse and terror What does it mean when an Israeli military intelligence general lam­ The European Monetary System will be ratified - without Britain ...... basts the Central Intelligence . .. 5 Agency's intelligence capabilities in Whose goose is Ceausescu cooking? ...... 7 testimony before· U.S. Senate staff No limit on insanity ...... 7 members, while two leading Zionist organizations issue reports SPECIAL REPORT denouncing an alleged U.S. "Arab lobby"? The answer, in our The big names behind the death cult ...... 8 The pushers of drug decriminalization, COUNTERINTELLIGENCE report, "dignity of dying, " and cultism has ominous implications for in­ Who created the Jones cult - and why ...... dependent U.S. intelligence­ 11 gathering capabilities and for U.S. Cultism's roots in MK-Ultra...... 18 capacity to restrain Israel from Kennedy's hospice movement: using its H-bomb capability against "death with dignity" for all ...... 21 the Arab oil fields. Plus: the ADL's Cult politics take over:

the case ...... "Arab lobby" hit list. page 52 . 25

TERRORISM The Jones cult and The Jones cult and the Mau Mau model ...... the Mau Mau model 29 The "defectors" group is key to looming terrorist deployment Will there be an outbreak of terrorism in the wake of the Jonestown murder-? Who ECONOMICS

. will the terrorists be? A report Behind the calls for tight money ...... 32 prepared by the U.S. Labor Party Robert Triffin: The Apollo of Security Section in our the Council on Foreign Relations ...... 34

TERRORISM section explains just . . . How to collapse the U.S. economy ...... 36 how the model of the British Mau British follow 1974 Herstatt script Mau operation can help answer in their bid for a crash of '79 those questions, and why law en­ Are U.S. bankers committing hara-kiri? ...... 38 forcement agencies should be keeping an eye on the "Jones defectors group." page 29

© 1978 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. Vol V, No. 47 Behind the calls December 5-11, 1978 for "tight money"

Are the architects of the "tight money" policy sincere in their INTERNATIONAL professions of "inflation fighting"? Ohlra victory a setback to 'Bremen East' ...... 39 The answer. reports financial Already, business leaders press Prime Minister analyst Lydia Dittler. is "no." Her to continue Fukuda's policies report. heading this week's ECONOMICS section, details how a EUROPE provoked U.S. recession would work to help keep control of the massive The truth about the Moro murder Eurodollar market in British hands, breaks Into Italy's press ..•...... •...... 43 European Labor Party book is and block the channeling of excess scrutinized by Italian government dollar liquidity into the European Monetary System's global development projects. Plus: the THIRD WORLD precedent of 1974's Herstatt panic in

Dealing Latin America Into the EMS ...... 47 a step-by-step analysis of how The new monetary system offers Britain and her agents hope to industrialization and trade collapse the U.S. economy today, and a profile of pro-IMF forces' oracle. Robert Triffin. U. S. REPORT page 32

Vote machine tampering in Maryland ...... •...... •4 9 Freeman challenges Mitchell with Ohlra election sets evidence of 'recount' at the warehouse back' Bremen East'

COUNTERINTELLIGENCE The election of Henry Kissinger's "favorite Japanese" as the new Israeli intelligence taking over CIA policy making ..••52 Zionist lobby targets U.S.-Arab economic ties Prime Minister of Japan last week came as a shock to just about ADL's corporate, Intelligence hit list ...... •55 everybody - most of all the man he replaced, Takeo Fukuda. a leader in the effort to establish the European Monetary System as the world's new financial structure. Already, Ohira has spoken of shifting the emphasis of the Japanese role behind the Inter­ national Monetary Fund. This week's INTERNATIONAL report analyzes the Ohira victory, and what it means. page 39 EXECUTIVE EXECUTIVE INTELLIGENCE INTELLIGENCE REVIEW Is u.s.policy REVIEW madein Disneyland?

... GIVES YOU the intelligence you need to be making policy whether your responsibilities are in government. the labor movement. business. education. or elsewhere.

... COVERED WHAT WAS really negotiated at the July 1978 Bremen and Bonn summits of industrialized countries ... and how the European Monetary System launched at Bremen was modeled on a 1975 proposal by the American political economist Lyndon H. LaRouche, Jr. as the "seed-crystal" of a new, development-oriented world monetary system ... how the United States can get into this system and out of the depression .. ... DOCUMENTED ... REPORTED HOW what's behind the world outbreak of terrorism. fusion energy researchers in the United States the names of the global networks that deployed achieved the milestone breakthroughs reported in both "Ieff' and "right" terrorism to kill Juergen August, 1978 from Princeton, and what other Ponto, Hanns-Martin Schleyer, and Aldo Moro­ advances are coming in this clean, cheap and and plan an even bigger terror wave for the United virtually unlimited solution to the world energy States ... Executive Intelligence Review provides crisis . .. how and why there was a massive the tirst-hand documentation from the world's sabotage attempt against the U.S. fusion program, press, including accurate translations from non­ and who's backing fusion now . .. what were English sources, showing how continental Europe, Japan's and the 's offers in 1978 to the Japan, the East bloc, the Arabs and developing USA for joint fusion R&D. sector countries are seeing and acting on events.

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Shadesof1974 The same voices are chorusing for dollar collapse and terror

Predictions by Prof. Robert Triffin American bankers behave in the munity. when it should be taking before the Council on Foreign Re­ stupidest possible way. Assaulted aggressive steps out into the inter­ lations on Nov. 24 of an inter­ since the inception of the Carter Ad­ national markets. In 1974, the U.S. national banking collapse if the ministration. the American eco­ financial community took it on the world does not hand itself over to nomy, like Rasputin, is refusing to chin from Burns, made a deal to the International Monetary Fund collapse. keep bankrupt London functional are only one example of statements However. there is a darker side at the expense of everyone else. circulating on the international to this business. October 1974 fell and then took the consequences in scene that remind us of 1974. Le in the middle of the Patty Hearst the form of recession. The same Monde is recalling the Herstatt dis­ affair, run through the same pro­ London journals are saying the aster. The same British investment fessional mind-control networks same things they said then. The bankers who commented sadly on responsible for the Jonestown hor­ world situation is immeasurably the early demise of the New York ror, documented in this issue. A more stable. due to the efforts of international banks back then are strategic turning point not unlike our European and Japanese allies. full of fresh scenarios for the dol­ October 1974 is in the making. But the dangers brought on by lar, the U.S. economy, and the Then. as now, the U.S. Ad­ continued display of American Eurodollar market. ministration is opting for an aus­ stupidity are in the most important Back in October 1974, Federal terity policy that is horrifying respects infinitely greater. Reserve Chairman Arthur Burns sections of the business com- - David Goldman ordered the banks to shut off lend­ ing, and collapsed the bubbly U.S. economy in the worst-ever wave of layoffs and credit contraction. That is precisely what Th e Wa ll The EMS will be ratified­ Street Journal, Salomon Brothers, and the entire British press are de­ but without Brita in manding (although it is doubtful whether Miller has the political sway to do it) . What knocked out The European Monetary System is formed Luxembourg and Holland the economy was the combination slated for ratification Dec. 4 at the that he will do so. pressing for of the Eurodollar credit contrac­ European Community heads of rapid EMS funding of regional tion provoked by a series of British state summit - with Italian mem­ development. Despite the anti­ special operations, including the bership, but not British. The UK EMS stance of the Italian central collapse of the Herstatt, Franklin government has finally made an of­ bank, and a Nov. 29 statement by National, Sindona, and Mossad's ficial announcement that it cannot the British-controlled Socialist own Banque du Credit Inter­ join an EMS which would require a Party that "the presence of Britain nationale - plus Arthur Burns. pound sterling devaluation and will is needed as a condition for making The scenarios passed along to the supersede the British-adminis­ valid an acceptable compromise on Executive In telligence Review by tered International Monetary the mechanisms of the EMS," An­ willing British banking outlets run Fund. dreotti's policy now has the full along similar lines. We will not But, in a substantive victory for backing of the previously reluctant take the trouble to print most of Franco-German EMS diplomacy. Communist Party. General Sec­ them. At this point, given the over­ the Italian cabinet meeting Nov. 28 retary Enrico Berlinguer endorsed whelming strength of the Euro­ granted Christian Democratic the EMS in a recent Un its inter­ peans and Japanese in the inter­ Premier Giulio Andreotti full view on the grounds that the EMS national markets, the likelihood of powers to consummate Italian will serve as a vehicle for the Third their success is small, even if entry Dec. 4; Andreotti has in- World economic development he

December 5-11.1978 EXECUTIVE INTELLIGENCE REVIEW THIS WEEK 5 termed essential for further the Nov. 29 business daily Handels­ very confession of weakness sig­ growth in the advanced sector. bla tt with a newly unqualified en­ naled by staying out of the EMS West German Chancellor Helmut dorsement of the EMS. It is "primi­ will trigger a run against the Schmidt has continued to consoli­ tive," he said, to call the EMS "an pound. date domestic support for the new inflation machine"

"The proposed European Monetary Fund is a subject which has A seminar on not been properly recognized anywhere in this country. Business leaders should take advantage of Mr. Goldman's appearance to find 'Saving the dollar

out the facts behind the proposal ... I plan to attend - I invite bankers the Facts behind the and corporate executives to do likewise... European Monetary System' Robert M. Perry Executive Director Michigan Banking Association featuring Costas Kalimtgis DAVID GOLDMAN is economics editor of the Executive Intelligence Review. Through the work of Mr. Goldman and his staff. the Review Contributing Editor. Executive Intelligence Review has scooped other u.s. press and economic analysts repeatedly in and coverage of the European Monetary System. Mr. Goldman has inter­ viewed top executives at dozens of leading American Banking and David Goldman industrial concerns. and led the Review's team in on-the-spot cov­ erage of the recent International Monetary Fund meeting in Wash­ Economics Editor. Executive Intelligence Review ington. D.C. Thursday, December 14,2:00 PM Renaissance Center Detroit Plaza Hotel, Renoir Room, 4th floor COSTAS KALlMTGIS is a contributing editor to the Executive In­ telligence Review. Mr. Kalimtgis is recognized as one of the ec­ Detroit, Michigan onomic theorists responsible for the formulation of the International Seminar Information requests shoul d be sent to Development Bank policy which serves as the model for the Executive Intelligence ReVIew European Monetary Fund proposal. Mr. Kalimtgis is also the Detroit Bureau coauthor of the soon-to-be-released book. Dope Inc. - The Worfd's 2011 Park Avenue. SUite 610 Biggest BUllneaa. DetrOIt. Michigan 48226 13131964-2550

6 THIS WEEK EXECUTIVE INTELLIGENCE REVIEW December 5 -11, 1978 Whose goose is Cea usescu cooking?

Top NATO leaders convened Nov. into the EMS as a vehicle for these it for the first time a call for ecu­ 25 in Lisbon to plan "the evolution objectives is indicated most recent­ menical cooperation amongst "so­ of dissidence among W arsa w Pact ly in their public support for EMS­ cialists, social democrats, Chris­ members" and "the defense of initiators West Germany and tian democrats, and religious human rights and the tension France. organizations." At the same time, between East and West in view of In 1968, a similar scale of co­ Pope John Paul II has moved to human rights," the Portuguese operation between President head off possible Brzezinski-type daily Express revealed this week. Brezhnev and French President destabilizations in Poland by As this meeting began, the story Charles De Gaulle led to the deploy­ praising the atmosphere of growth broke in the international press of ment of Zbigniew Brzezinski a­ provided for the Catholic Church in disagreements at the Nov. 22-23 gainst Czechoslovakia, the his home country. Warsaw Pact head-of-state level "Prague Spring." Only this sum­ consultation. Returning from this mer, Brzezinski confided to high­ meeting, Romanian President level sources that he still considers No limit on insanity Nicolae Ceausescu made world the "dissident card" his ace-in-the­ headlines for his refusal to hole against the Warsaw Pact. In the Nov. 29 Ne w York Tim es condemn the Camp David accords (This is no doubt the origin of ex­ Richard Burt reported that the and the nation that Britain mental patient Vladimir Bukov­ U.S. "is moving toward a vast fervently advocates arming - the sky's recent London protests revision of its strategy on nuclear People's Republic of China. equating, as Hitler did, "human warfare." Ceausescu has also declared his rights" with "nationalities' Burt, who served as the assistant dissidence within the Warsaw Pact rights. ") The British press is hope­ director to London's International by announcing Romania's refusal fully egging on a "Bucharest Institute of Strategic Studies, to ever obey an order from a "for­ Winter." The London Guardian wrote that National Security eign" commander. claimed Nov. 30 that Moscow is Director Zbigniew Brzezinski was To whose benefit is this esca­ faced with a "Prague Spring" clearly coming to dominate the lation of southern European and every 10 years, and this year it will Defense Department and the Balkan tension? Last week's failed be in Romania ! Carter Administration on such push by the British in NATO for a Ceausescu's -refusal to join the strategic questions. "Aides in the pro-NATO coup in Spain provides a Warsaw Pact condemnation of Defense Department and National lead. That country was not jolted Camp David - the "Munich Pact" Security Council, see 'a revolution' out of its support for the new Euro­ as these nations have called it - is in nuclear strategy," wrote Burt. pean Monetary System. The not a mystery. The British-de­ "The purpose of their initiatives is growing, openly stated "Atlantic to ployed Israeli intelligence services to give the United States an the Urals vista" of Soviet-Euro­ have maintained this separate enhanced ability to wage a limited pean cooperation for the new world diplomacy as an option of Mideast nuclear conflict." monetary system is horrifying the destabilization since the Kissinger This is the wildest insanity - to British, as their press reports. "shuttle diplomacy" ended. But be specific, London's insanity. Last week alone, Soviet Presi­ has the Mossad promised to put While the IISS seeks to convince dent Brezhnev's policy commit­ Ceausescu under the nuclear um­ the U.S. to face off against the ment to continentwide economic brella Israel gained through es­ Soviets in a "limited war" and political detente wa s reflected pionage against the United States showdown, the Soviets are saying in several Politburo appointments in return for his public support? again and again that if there is and demotions as well as in the Despite press predictions that war, it will be all-out war - Final Declaration of the Warsaw Warsaw Pact troops will soon be thermonuclear world war. Pact. This declaration called for marching into the Romanian capi­ Moreover, Burt's hopes for a the development of nuclear energy tal, the Kremlin is actually car­ strategic U.S. shift to in conjunction with key disarma­ rying out a policy of "restraint were dampened when, at his Nov. ment measures. The call for nu­ within and with reason." The 30 press conference, President clear energy cooperation on a Soviet leadership has chosen to Carter disavowed the limited worldwide basis, made frequently garner support for its economic nuclear war concept. Asked by a by the Soviets, has been accompan­ development-centered detente po­ reporter about the strategy shift ied recently by direct offers to the licy by appealing to appropriate Carter replied there "was no U.S. for increased trade. The So­ sources. Thus, this year's Warsaw change in our basic policy of viet commitment to draw the U.S. Pact Final Declaration included in deterrence. "

Oecember 5- 11, 1978 EXECUTIVE INTELLIGENCE REVIEW THIS WEEK 7 First a U.S. Congressman was gunned down in the the product of a 40-year-Iong British intelligence jungles of Guyana. Then over 900 members of the project run into the United States under the case of­ Peoples Temple of died in a grisly human ficership of Aldous Huxley, and employing a vast sacrifice ritual. Then the mayor and a city supervisor array of individuals and institutions at a cost running of , the Jones cult's home base, were into the billions of dollars. assassinated. Warnings of terrorism by Jones cult members, and by former members, new cults The satanists of London's oligarchy threatening suicide and murder, were the stories inter­ The following report will provide the average citizen spersed in all the media amid the increasingly and the trained investigator with the evidence to gruesome coverage of every aspect of the Jonestown identify the criminals behind the death cult "move­ massacre. ment," from the immediate controllers all the way to Of every aspect? In fact, the American people, the the top. Many have familiar names - Ted Kennedy, Congress, and professional law enforcement officials California governor Jerry Brown, Health, Education, are now further from understanding the cause and the and Welfare Secretary Joseph Califano, Henry significance of those events than they were when the Kissinger, Zbigniew Brzezinski. A long list of private first reports were flashed back from Jonestown. institutions and contaminated government agencies, While the media inundates the population with its acting as effective centers of SOE subversion in the own brand of death cultism, the real story - the big U.S., put years of systematic, coordinated effort into names behind the death cult - has gone unreported. Rev. Jones's little cult, and now they are reaping the Both the "black propaganda" in most media, and payoff. the horrifying events themselves, are no spontaneous But the "mother" of this entire network is to be sociological phenomena. As a careful examination of found in the Tavistock Institute in London, in the SOE, the facts shows, the whole hideous business was the most secretive branch of British intelligence, and deliberately created, cultivated, and deployed by a in the British monarchy's official "chivalric order." closely knit group of conspirators, whose control the Most Venerable Military and Hospitaller Order of traces back to the British Special Operations St. John of Jerusalem (Knights of Malta) . These Executive (SOE) and the cult formations in which the oligarchists, sharing their devotion to the centuries­ power around the British monarchy is organized. Its old cult of Isis. and of its magical, feudalist outlook, purpose is to wreck the foundations of the American have duplicated themselves in microcosm in the political system, beginning with the Carter White zombies of Rev. Jones and other brainwashed kook House, to establish the preconditions for a massive groups. wave of Baader-Meinhof style terrorism in the United As if to flaunt the fact, one of the prime press outlets States under the cover of fanatical pseudoreligious of the London oligarchs has virtually declared that the cults, and to remove all obstacles to the installation of Jonestown massacre signals the beginning of a new Senator Edward Kennedy as President on, or before, cult of Isis era. In its Nov. 25 issue, the Rothschild­ Jan. 20, 1981. owned London Economist ran an atrocity photo cover Sound like Brave New World, or 1984? It should. For from Jonestown with the headline. "Is Satan dead? " the Peoples Temple and the rest of the scenario is all and. inside. hailed the horrible events in Guyana as a

8 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5 -11.1978 Cultists in the U.S. government

The New York Times and other leading U.S. press have hastily moved to attach blame for the mur­ "' :: "'''c" c.� ders in Jonestown to the Guyanese government, the Soviet Union, and finally, the "atmosphere" of the city of San Francisco, quietly dropping from its manifestation, albeit "extreme and therefore pages any reference to the leading American of­ distorted," of a new kind of religiosity sweeping the ficials who underwrote Jim Jones's operations. world (see box, page 10). "There are perhaps worse (events) to come, " the Economist predicted, and But last week Guyanese President Forbes Burn­ concluded that by the 21st century it would all lead to ham released a list of U.S. dignitaries, mostly "coherent new bodies of spiritual belief." from the Kennedy wing of the Democratic Party, Even more horrifying was the comment of one of whose praise-filled commendations had prompted Jerry Brown's advisors immediately after San Guyana's acceptance of the settlement at Jones­ Francisco mayor and city supervisor town. The list of Jones's supporters reached from , both supporters of Jones, were mur­ big-city mayors up to the White House offices of dered by a former city official. "Dionysus is loose in Vice-President Walter Mondale, all of them persons California," he said. "That is good news. The bad so closely linked to the Maltese Order's networks news is that it is so strange to people that they are and the British-based cult of Isis that they belie any afraid." claim of being "fooled" by Rev. Jones. Here, some of the highlights : The immediate effects The most visible impact of the Jonestown massacre thus far has been to set the Carter Administration up Vice-President Walter Mondale: for a scandal paling Watergate by far. "Knowing of your congregation's deep involve­ Having in hand the Guyanese government's public ment in the major social and constitutional evidence that every prominent member of the British­ issues of our country is a great inspiration to allied Zionist lobby in government - with the signifi­ me." cant omission of Ted Kennedy and Jacob Javits - endorsed or supported Jones's operation in Guyana, the executive branch has declared that it will not in­ HEW Secretary Joseph Califano: vestigate. If, as has been threatened, cultists launch a " ...Knowing your commitment and com­ retaliation, Carter could be forced to resign im­ passion, your humanitarian principles and mediately. your interest in protecting individual liberty In one way, the stonewalling is not surprising. Some and freedom have made an outstanding in the Administration - Califano and Mondale, for contribution to furthering the cause of example - are up to their necks in the "right-to-die" human dignity. movement that made the Jones cult possible, and in the vote fraud machine of George Moscone and Jerry Brown of which Jones was a part. Senator Henry Jackson: But the real sponsor of this "movement" is the man "I also welcome hearing of the fine work of who stands to reap the most immediate political your church and the many proj ects which your benefit from Carter's downfall - Senator Kennedy. congregation has undertaken." The man who publicly professes to be Carter's biggest

December 5 -11. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 9 supporter is intending both to pick up the pieces of the Carter Administration and to hasten the collapse of the U.S. into the sort of austerity regime typified by 'Is Satan dead?' the hospice ethic of hustling the sick and the aged into low-cost coffins with the aid of heroin, LSD, and other From theLondon Economist of Nov. 25: drugs. The mass suicide of several hundred members of an obscure American religious-cum-political sect in Kissinger and Brzezinski's role a remote corner of Guyana is not just another ex­ The role of Henry Kissinger in the Jonestown atrocity ample of the American tendency to violence, and began with his preparation for Jones's migration to not just another warning of the madness that lies at Guyana during his tenure as Secretary of State. At the the fringes of the cult world .... time the Kissinger crowd facilitated the colonization, It is also an extreme and therefore distorted they knew that this was to become a drug-growing and manifestation of a much wider change that is drug-distributing operation into the U.S. , happening to the world .... in collabora­ tion with the standing London strategy of "opium The market place of religious innovation is one of war" against America. Moreover, getting Jones's cult the last and best examples of free enterprise in the into the Guyana border region was an integral world today. The cults and sects and communities element of the more general British scenario for pre­ which are looking for new ideas in this field are paring the overthrow of Guyanese leader Forbes most numerous in the United States because Burnham. America is, in this matter too, 20 years ahead of the The Kissinger influence continues through current rest of the world; but they are to be found in National Security Advisor Zbigniew Brzezinski, who Europe, west and east .... was himself personally responsible for quashing ade­ It is a period of experimentation; and, like all quate security measures or intelligence on the danger such periods, it is disorderly, hopeful and to Congressman Ryan or others going to Jonestown to terrifying. Anything goes. Elements of Christianity "rescue" inhabitants. mix in with elements of the old eastern religions Now the Federal Communications Commission has and philosophies. Half-forgotten fragments of admitted to having in its possession one full year's animism, and of the dark other side of the religious worth of tapes monitoring coded radio transmissions coin, are taken up and tried out. Some people at­ from the Peoples Temple to the U.S. But the agency tempt to break through the barriers of compre­ responsible for decoding such monitorings, and for hension with drugs; others prefer willpower and supervising the FCC, is the National Security Agency hard work; not surprisingly the first sort, like any­ - run by Zbigniew Brzezinski! one relying on external aids, is more vulnerable to darker influences than the second, self-controlled, The investigative method sort. It could take until well into the twenty-first The evidence presented in this report is best under­ century before all these experiments finally take stood as a set of four nested overlays. Each provides a shape as coherent new bodies of spiritual belief, detailed map of one feature of the overall operation, with coherent new institutions to run them .... and has frequent points of intersection with the other three. When the wrong force is with you The first overlay is the dossier of Jones and his If things go well. But in times of change and experi­ Temple, that traces Jones's personal career from his ment, and especially spiritual change and experi­ recruitment into the British Fabian-founded Fellow­ ment, many of the experimenters are flawed, ship of Reconciliation, to his days as a leading "get out troubled or damaged people; many of them do not the vote (fraud)" pol in the 1976 elections, to his drug­ understand the awful power of the forces they are running operation in Guyana. dealing with; and the consequences they unleash The second is the network of private and official can be horrifying. That is inevitable : no trans­ agencies that participated in the CIA's MK-Ultra, the formation starts with the end tidily and com­ LSD pilot project that got the counterculture started fortably in view at the beginning. It explains some and where many of Jones's controllers were first of the appalling or dismaying or merely embarrass­ trained in the science of cult creation. ing things that have already happened, from the Third is the hospice movement, the ""­ Manson murders to the Guyana mass-suicide by goes-respectable crowd, that brings together Ken­ way of the intellectual dishonesty of some of the nedy, the Order of St. John, and the cult philosophy of "instant transcendental meditation" cults. There "embracing death." are perhaps worse to come. The important thing to Last is an examination of the California case, where grasp is that these horrors are only the most this entire tissue of conspiracy is effectively in place spectacularly visible - because most extreme - as the government of the state - with the sort of signs of a much bigger and deeper movement.... results now making lurid headlines around the world.

10 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5 - 11, 1978 On Nov. 18, 1978, a fact-finding mIssIon led by human rubble - far more drugs than needed to satisfy Congressman (D-Cal.) investigating the medical needs of all of Guyana for up to a year! charges of drug trafficking and involuntary imprison­ Also uncovered at the Peoples Temple scene was a ment of American citizens by the Peoples Temple of half-million dollars in cash, large quantities of gold Rev. Jim Jones in Jonestown. Guyana, was gunned and precious jewels estimated at $3 million, and a down by Peoples Temple members as they attempted trunk containing over 800 U.S. passports. Subsequent to board their airplane at the airport. reports published in the New York Post indicate that Five people. including Rep. Ryan, were killed and a an additional $3 million of U.S. currency may have dozen other members of the party injured. disappeared at the time of the mass . Moments after the ambush, Rev. Jim Jones Within the Peoples Temple complex, Jones assembled 800-900 of his zombie followers in the center maintained a remarkably sophisticated and high­ of the Temple commune and ordered them to commit powered "ham" radio system capable of transmitting human sacrifice by swallowing a lethal dose of to California and the Mid-Atlantic states. Not only cyanide mixed with a number of drugs and Kool Aid. were American intelligence agencies aware of this The potion administered by Jones and his medical illegal radio system. it had been monitored by the assistant Dr. Schacht was described fully in the New Federal Communications Commission for several York Daily News of Nov. 22, and is very similar to the years as part of an official investigation. The Peoples "Brompton Mix" used by the Order of st. John of Temple also maintained at least three large trawler­ Jerusalem's St. Christopher's Hospice in London. yachts, registered in the port of Mobile, Ala. (1) The Parroting the Order of St. John's hospice trawlers operated in the Caribbean waters between propaganda, Jones urged his psychotic followers on by Guyana and the United States and were known by U.S. extolling the virtues of "dying with dignity." and Guyanese authorities to bypass normal customs According to a survivor of the death ritual in channels, often by anchoring in international waters Jonestown, many of the cultists accepted the potion just outside the 12-mile coastal limit. These trawlers only at gunpoint and those who refused the spiked Kool were confirmed to have smuggled illegal weapons into Aid were forcibly injected with the poison. Jonestown. What was Jones running? According to federal Drug connection confirmed records and on-the-scene observation, Jones was running drugs, illegal automatic and semi-automatic On Nov. 20, an aide to Rep. Ryan who survived the weapons, and other contraband on a sufficiently large weekend ordeal delivered a statement to the press in scale to warrant his operation of a private fleet of San Francisco which has been blacked out of the pirate ships and a sophisticated pirate radio network. national media. He confirmed that the Ryan fact-find­ These facts could not have gone unnoticed by a ing group had uncovered "drug-related matters" number of U.S. federal security branches including involving Jones and the Peoples Temple. The the National Security Agency and the Office of Naval following day, two reporters returning from the Intelligence, which are responsible for monitoring Jonestown scene reported that massive quantities of a these areas. The counterespionage branch ("Division wide variety of drugs were uncovered amidst the Five") of the Federal Bureau of Investigation and Air

December 5- 11 , 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 11 Force intelligence must also have known about direct threat to Ryan's life in fact predated the fact­ Jones's guns-for-drugs program via a different but finding team's departure from the USA. Lane and related channel of information to be discussed below. Garry remained in the Jonestown area until the This brush-stroke picture of Rev. Jones's Guyanese rescue teams arrived and were segregated from those colony is filled out by briefly considering the published cultists coerced into the death ritual. and unpublished reports on the nature of the northwest Lane was an Air Force Intelligence officer during region of the South American British Commonwealth World War II at a time when Air Force Intelligence state of Guyana. The jungle area of northwest Guyana was virtually run from the top by the British Air where the Peoples Temple and several other U.S. Force's Special Air Services (SAS) - the same SAS based cult-plantations are located was a horribly . that has been the principal British counterinsurgency desolate and virtually uninhabited region until the force deployed both within and against the Irish World Bank interceded in the mid-1970s to demand Republican Army Provos in Northern Ireland. Lane's that the Guyanese government initiate large-scale tenure with Air Force Intelligence coincided with that marijuana cultivation in the area as a condition for branch's official involvement in Operation Artichoke­ rolling over Guyana's debt. The area was an ideal Bluebird, the predecessor LSD experimental projects location for the resettlement of hordes of mind­ of MK-Ultra. During the 1950s, Lane was an FBI destroyed U.S. ghetto victims organized into slave "Division Five" counterespionage agent operating gangs through the use of sophisticated behavior mod­ within the Communist Party USA on the East Coast. ification techniques and drugs administered under the "Division Five" was the creation of British SOE head pretext of Christian-based pseudo-religious cults. Sir William Stephenson and was run by a Canadian Adjacent to Jonestown is another 6,OOO-person national and Stephenson protege Major Louis settlement founded by "the East" - a Brooklyn, N.Y.­ Mortimer Bloomfield. based black nationalist cult known principally for its From the 1960s, while still the "Division Five" drug-running and gun-running activities in the agent-handler, Bloomfield ran the Montreal-based Bedford-Stuyvesant section of Brooklyn and in Hart­ Perm index Corp., a private assassination and drug­ ford, Conn. "The East," along with its affiliated running bureau positively implicated in the Newark, N.J. "Kawaida Temple" headed by Leroi assassinations of President John Kennedy and a Jones (aka Imamu Baraka), was founded on the basis number of European political leaders. Evidence that of a synthetic religious belief structure identical to the Lane maintained his Air Force Intelligence-"Division "seven-headed cobra" of the Symbionese Liberation Five" credentials well into the 1960s is highlighted by Army, which was run through the same San Francisco the fact that he worked under British intelligence's channels that fostered Jim Jones's Peoples Temple. Lord Bertrand Russell from November 1963 on a These synthetic belief structures (Le., brainwashing project called the "British Who Killed Kennedy systems) were specifically developed by University of Committee," the first level of coverup of Permindex's role in the Kennedy assassination. Chicago "social engineer" Saul Alinsky. (2) The en­ tire nest of ghetto zombies in the Guyanese marijuana San Francisco-based "radical lawyer" Charles fields were preprogrammed as surely as if they were Garry was part of a team run out of the Criminology minicomputers! School of the University of California at Berkeley which maintained control over a variety of black On the trail of Jones's controllers radical groupings in the Bay Area, including most It should be clear to the average reader and notably the Black Panther Party. As a member of the strikingly evident to the trained investigator that such proterrorist National Lawyers Guild (NLG) , Garry's goings-on require the oversight of a layer of trained activities prior to the Jonestown massacre bordered intelligence personnel with specialized skills in on criminal complicity in terrorist activities in much coercive psychology. While a full evaluation of who the same way that the activities of the Socialist constituted the "controller" strata at Jonestown is not Lawyers Collective in the Federal Republic of yet complete, certain obvious cases can be identified Germany eventually became indistinguishable from that represent the . crucial starting point for any the activities of the Baader-Meinhof terrorists they serious investigation. were "defending." The two most important cases are lawyers Mark During the year leading up to the Nov. 18 events, Lane and . Lane is particularly crucial Garry was the channel of support for Jones from such as he has a background as an Anglo-American intelli-· Institute for Policy Studies-affiliated "radicals" as gence operative entrusted with classified assignments and Huey Newton. It is unconfirmed, but since World War II. Both Lane and Garry were in highly likely, that Garry was a recruiter for the Jonestown throughout the period of the Ryan Peoples Temple, drawing in former Black Panther investigation. The two declined to leave with the fact­ Party members and Bay Area drug addicts and finding team and have admitted foreknowledge that criminals he had "defended" through the NLG and the team would be attacked and that the mass-suicide related channels. was pending. Lane and Garry's foreknowlege of a This "witting" classification of Garry is further

12 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5-11,1978 substantiated by his long-standing close association Jones, the son of an Indiana leader of the Knights of with the NLG's East Coast counterpart "old boys" the Ku Klux Klan, by no later than 1955 and shaped Leonard Boudin and Victor Rabinowitz of Rabinowitz, him into the psychopathic cultist who died in Guyana BO,udin and Standard. Boudin et al. were responsible on Nov. 18. Born in the depressed industrial town of for a mid-1960s study of Caribbean and South Lynn, Indiana, in 1931, Jones grew up in nearby American countries that would be prime targets for Richmond, where he met his wife, Marceline Boswell, drug cultivation and chemical production, including then a nurse trainee in a local hospital. He briefly marijuana, hashish and LSD. Through the Boudin­ attended the Bloomington campus of the University of Rabinowitz effort, an earlier cult, Timothy Leary's Indiana in 1949 before gravitating to Indianapolis and Brotherhood of Eternal Love, established LSD and the fringe religious sects in that city. After a short hashish production-distribution centers in the appointment as "pastor" for a downtown Indianapolis Bahamas, Costa Rica, etc. Methodist church, whose congregation asked him to As reported in the New York Times of Nov. 20, leave because of his "radical" views, Jones became Jones's entry into Guyana was paved by numerous associated with the Pentecostals, who believe that leading figures in the Democratic Party, including leaders demonstrate "charisma" by "speaking in Vice President Walter Mondale, Secretary of Health, tongues," i.e., by entering a trance state and babbling Education, and Welfare Joseph Califano, California incoherently. An extremist wing of the Pentecostals Governor Jerry Brown, Sen. Henry Jackson (D­ engages in snake-handling, and has been the subject of Wash.), and San Francisco Mayor George Moscone. intensive profiling by members of the Tavistock Clinic All of these individuals issued letters of glowing praise in London and the source of numerous cult leaders, for Jones's "charitable acts" and services to the including the Rev. Kirby Hensley, founder of the Democratic Party. Since the mass suicides of Jones multi-mill�on-member Universal Life Church that was and 900 followers in the Guyanese jungles, these endorsed as a potentially valuable "Nativist political figures have naturally attempted to distance Endeavor" in a recent issue of William F. Buckley's themselves from the Jones death cult, either by dis­ National Review. claiming the fact of the letters' existence (as in the case of Sen. Jackson) or by portraying Jones as a man The Zionist lobby countergang' who became deranged in the last months of his life. As we delve into the early background of Rev. Jones Jones's activities soon brought him to the attention and trace his path from Indianapolis to California and of Rabbi Maurice Davis, an executive committee on to the jungles of Guyana, it will become clear that member of the British- and Israeli-intelligence-linked Rev. Jones's preaching the "dignity of death" to a Zionist Organization of America. Davis set up Jones in mob of suicide victims in Guyana last week was no his first Peoples Temple in 1955, when he sold his own different than the crazed Jones known to his synagogue to Jones for $50,000 which was to be paid Indianapolis neighbors in the early 1950s, when he set back over time, apparently on the basis of Jones's up his first Temple at the age of 18 with the revenues primary source of revenue at the time: the street­ from selling imported monkeys ! corner sale of imported monkeys at $29 each. Sources in Indianapolis report that a far-reaching To this day, Davis retains his 1950s function as a coverup is underway to conceal the identity of the controller of religious cults. Presently based out of Indiana-based networks responsible for the Westchester County, N.Y., Davis heads an recruitment, brainwashing, and initial deployment of organization called "Citizens Engaged in Reuniting Rev. Jim Jones, of convicted mass murderer and Families" (CERF), which has situated itself to Satan worshipper Charles Manson, and Symbionese coordinate all parental opposition to such Liberation Army "soldiers" William and Emily brainwashing cults as the Unification Church and the Harris - all former residents of that state. Hare Krishna. In fact, Rabbi Davis's anti cult An investigation of the intersection points of these organizing is crucial to the maintenance of the cults four cult killers would lead through the British Fabian themselves, and to the development of hard-core Society-initiated "liberal dissenters church" terrorist options off of the cult memberships. CERF establishment of Indianapolis and associated pacifist has publicly endorsed and contracted the and New Left groups, through a network of "free "deprogramming" services of Ted Patrick, who enterprise" institutions spun off the British Mont kidnaps members of the "Moonies" and other cults Pelerin Society and gutter-level chapters of the John and subjects them to sensory deprivation, drugs, and Birch Society, Klan and neo-Nazi gangs, through the physical torture - counterbrainwashing. linguistics and related artificial-intelligence projects The role of such "anticultists" is a crucial aspect of launched at the University of Indiana in Bloomington British intelligence's ability to maintain control over by the 1940s, into the executive offices of the Eli Lilly the cults themselves. The model for this sort of Pharmaceutical and Chemical Corporation and its operation is most clearly presented in Brig. Gen. associated Eli Lilly Endowment. Frank Kitson's book, Gang-Countergang Warfare, This is the network that picked up James Warren where Kitson describes the methods he employed to

, December 5 -11, 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 13 crush the Mau Mau in Kenya. After capturing Mau during Davis's stay in the area, but one of the doctors Mau tribesmen whom he paraded as "defectors," then at Lexington, Dr. Joel Fort, was subsequently a Kitson organized synthetic Mau Mau gangs, putting key controller of Jones's Temple when the group was his own men in black face, who carried out murderous relocated to San Francisco in the 1970s. Second, Rabbi raids upon villages sympathetic to the original Mau Davis presently maintains direct contact with Mau aims. The net effect was to undermine the Mau terrorist circles associated with the Institute for Mau's base of operations, driving them into a narrow Policy Studies headquartered in Washington, D.C., region where they could be mopped up . While in through his membership in the Westchester chapter prison, Mau Mau tribesmen were subjected to intense of the United Farm Workers, headed by Saul Alinsky behavior modification by teams from the Moral protege, Cesar Chavez. Affiliated with this branch of Rearmament Movement, that was spawned by the the UFW is the Eastern Farm Workers Association, British "High Priesthood" of the Oxford Movement, founded by Gino Parrenti, a known member of a whose agents later formed the Moonies. (For more on nationwide gun- and drug-running underground. the Mau Mau model, see TERRORISM.) Rabbi Maurice "Mau Mau" Davis performs a Why Jimmy Jones? similar role vis-a-vis the cults today. The Moonie leaders literally portray Davis as the "Devil," raising After his initial "vetting" through the local Zionist the threat of "deprogramming" by Patrick and others Lobby, Jimmy Jones was put in touch with his key to intimidate those members who want to return to patron-controller during this early period in Indiana, reality. Through his CERF parents organization, Barton Hunter, who was at the time executive Davis has positioned himself to control independent secretary of the Church in Society of the Christian countermeasures against the cults and to monitor and Church, Disciples of Christ, and is currently executive subtly misdirect all research into the cults'·origins, in director of the Fellowship of Reconciliation (FOR). much the same way that has done to FOR was founded in 1915 on the explicit model of the investigations of President John F. Kennedy's year-old British Fellowship and in collaboration with assassination. Jane Addams who brought the British Settlement At the time that he picked up Jones, Rabbi Davis " House movement from Oxford University to the U.S. was : (1) rabbi of the Indianapolis Hebrew and founded the pacifist networks affiliated with the Congregation ; (2) editorial columnist for the National American Friends Service Committee at this time. Je wish Post and Opinion ; (3) member of the Among "radical" institutions that members of FOR Executive Committee of the Federal Council of were responsible for founding were: the National Civil American Rabbis and chairman of its Commission on Liberties Bureau (now the ACLU), the National Family and Home ; and (4) member of the Executive Conference of Christians and Jews, the Committee on Committee of the Zionist Organization of America. Racial Equality (CORE), the American Committee on The ZOA, founded in 1898 as a branch of the World Africa. FOR founder and ordained Presbyterian Zionist Organizatio(l by British agent Herzl, David minister A.J. Muste also created Brookwood Labor Wolfson of MI-5 and others, is today associated with College, both as a workingman's version of the the right wing of the Zionist movement, specifically "Rhodes Scholarship" and to funnel such Baliol the ruling Likud Party of Israel, the Gush Emunim, College, Oxford trained British intelligence agents as and so on. It was in his capacity as chairman of the James Burnham (currently, a "free enterprise Indianapolis Housing Commission that Davis would conservative" with National Revie w) into the aid Jones's career, including helping to get him select­ Com intern. In addition to Barton Hunter, several ed as director of the Mayor's Human Rights Com­ members of the Butler School of Religion, where mission. Jimmy Jones was trained, play prominent roles in The fact of Rabbi Davis's early patronage of Jim FOR. (3) Jones is significant from the further standpoint that it establishes an unbroken continuity of controllers Indianapolis is the "Vatican" of the approximately actually directing the activities of Jones and his million-member Disciples of Christ, a schism from the "disciples." Further investigation into the role of Presbyterian Church ostensibly organized to provide Davis should necessarily consider two additional a more "democratic" forum, in reaction to the features of his career that establish him as a cult Calvinistic conception of "predestination." As one controller. First is the fact that Davis spent several local theological authority put it: "In Indianapolis, the years in Lexington, Ky., just prior to his move to 'Establishment' is the Disciples of Christ." Its Indianapolis and his association with Jones. Lexington leadership ranges from a "conservative wing," is the home of the largest federal experimental centered on executives of the Eli Lilly Corp. and hospital dealing in drug abuse and behavior Endowment, to an "ultraliberal wing" centered on modification, and also an early experimental center such figures as Barton Hunter. But the shared for methadone maintenance, for which the drug was worldview of both wings of the Disciples of Christ is supplied by Eli Lilly Corp . Lexington Hospital proper classical British liberalism, whether it takes the form was not only the center of LSD experimentation of the "free enterprise" ideology sponsored by the

14 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5-11.1978 Lilly Endowment via the Heritage Foundation and which collapsed as soon as he left. immediately other subsidiaries of Britain's Mont Pelerin Society. preceded a military coup d'etat there in which or that of the "welfare state" epitomized by AFSC various U.S. and British intelligence agencies have programs. been implicated. It also coincided with the deployment The Lilly Endowment. which is a heavy financial of members of Aldous Huxley's MK-Ultra team to source of the Disciples of Christ. was founded in 1937 Brazil and other Latin American countries to study. by the Lilly Family. whose principal source of wealth among other things. the use of hallucinogenic drugs by is the Lilly Chemical and Parmaceutical Corp. The the Aztecs as part of their human sacrifice rituals. On corporation is now the sole U.S. source of methadone. his return. Jones was ordained as a minister of the an addictive drug first developed to control Disciples of Christ and his Peoples Temple was concentration camp victims in Nazi Germany accepted as an affiliated church. It was also on his ("dolphine") and now as a surrogate for British-style return that Jones first began to claim that he was a "heroin maintenance" programs. Despite its "faith healer." conservative image. Lilly finances both "left" and "right" sides of the British intelligence operations. The Redwood Valley years including both the American Enterprise Institute. Heritage Foundation. and Freedom House. and the Jones's alleged fear of thermonuclear holocaust. Maoist National Committee on United States-China which led him on this first trip and which ultimately

Relations. Inc .• Counterspy's Youth Project front. etc . led him to move 100 of his followers to Ukiah. (4) California in 1965. was instilled by Barton Hunter and In a recent interview. Barton Hunter described why the pacifist organizations with which he was affiliated. he had selected Jim Jones for special grooming. notably the FOR. In 1961. the FOR launched a "He's a real bright guy as you probably can guess." program to build "real shelters for homeless people." said, Hunter. "An attractive person ; both he and his Ukiah. a secluded town in the Redwood Valley that wife were. Very sensitive. Very aggressive ... even at had been the scene of earlier Huxley eXperiments in this point his obvious takeover qualities were there cultism and had been identified in a 1961 Esquire (emphasis added - ed.). He was the pastor in the magazine article as one of the nine safest places in the Church. and it was 'his Church.' There was no world in the event of thermonuclear attack. provided resistance to this on the part of the people who came ... the shelter site. Along with Jones's Peoples Temple. people who were hungry. people who were lonely. the tiny town of Ukiah was also the gathering point people who are unseen and don't know where they're for members of the "Diggers," a San Francisco­ going. You know. and here was a guy who said. 'This is Berkeley-based beggar cult that was a direct the way'." outgrowth of the MK-Ultra clinics. and for the West In short. Jirltmy Jones displayed the persona of the Coast branch of the War Resistors League. a British charismatic leader whose qualities were the subject of Fabian Society creation closely affiliated with both so many studies by foundations like the Lilly Bertrand Russell and with Jones's "mother" Endowment at the time. institution. the FOR. It was from the Diggers Under Barton Hunter's patronage. Jim Jones was communes of ravaged LSD victims and like-minded sent to the Butler University School of Religion - the circles of the War Resistors League that many of the theological seminary of the Disciples of Christ funded early California recruits into the Peoples Temple were by Lilly. two of whose board members. Burton E. drawn and molded into a cohesive cult of zombies in Beck and Eugene N. Beesly. are also trustees of the the secluded "shelter" ("controlled environment") of College. It was also with the backing of Hunter and the Redwood Valley. Rabbi Davis that Jones was selected in 1961 to serve During the early months in Ukiah. Hunter made for a few brief months as director of the Mayor's regular trips from Indianapolis to maintain close Commission on Human Rights. Some sources indicate watch on the developing Peoples Temple operation. A that Jones was removed because he was too new controller. however. had already been deployed aggressive in pursuing racial integration ; however. into the group who would supplant Hunter's day-to­ others have suggested that a scandal was on the verge day controller role. until Jones's deployment into of erupting over the various low-income housing Guyana. This was Tim Stoen. reported to be an "ex­ projects that Jones and Rabbi Davis were involved CIA agent." and the Assistant Attorney for Mendicino with. including the transfer of Church members' County during the Jones cult·s tenure there. Through homes to Jones's personal ownership. the Stoen connection, Jones was appointed to the Immediately after his "resignation." Jones took off Mendicino County Juvenile Commission which pro­ on a two-year trek (1961-63) to Hawaii. the Belo vided a cover for recruiting approximately 50 youth­ Horizone Valley in Brazil. and then back to ful drug-runners (ages 12-16) for Jones's soon-to­ Indianapolis. after a brief stopover in Guyana. the be established narcotics network. under the guise of future base of his "Peoples Temple." Jones's stay in "rehabilitating" them from drug abuse. It was Tim Brazil. where he ostensibly founded an orphanage Stoen's later "defection" to form the Concerned

December 5-11, 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 15 Parents group, modeled on Rabbi Davis's CERF, that country's largest drug manufacturers, is certainly reportedly triggered Jones's first threat of instant suggestive. The first documented evidence of the suicide by 300 of his followers. cult's involvement with drugs is found via Jones's It was at the time that Stoen joined the Temple that association with Project One, a heavily funded the first public reports began to circulate of the cult's behavior modification factory run by Dr. Joel Fort widespread use of drugs, electroshock, sodomic rape, and former Air Force Intelligence operative Captain and other bizarre practices in the "recruitment and H. Bruce Franklin in the heart of San Francisco's discipline" of members. However, when two Filmore District. Fort was a leading member of investigative reporters, and Lester Huxley's MK-Ultra team to produce the rock-drug Gonsalving, both with the San Francisco In quirer, counterculture. Drawing on his early experiments at attempted to follow the leads provided by a respected Lexington Hospital, Fort coauthored Utopiates, a book local Ukiah Baptist Minister, Richard Taylor, they on LSD-25 that was published by the Tavistock Clinic were summarily fired. in London, where much of the early planning for MK­ Ultra took place. Project One was funded in part by the Transamerica Corp., which owns United Artist How the brainwashing works Studios and includes as its corporate vice-president William Jones, a member of the Order of St. John of The heavy introduction of drugs and perverted Jerusalem. sexual practices to break down the individual cult Inside Project One, a large converted warehouse. member's sense of identity was a direct byproduct of Fort ran a drug clinic (methadone supplied by Eli Jones's integration into two subprojects of MK-Ultra, Lilly) . a paramilitary training center. a behavior the Glide Memorial church and Project One, which modification clinic. a computer that maintained were based in San Francisco where Jones and his psychological profiles of local politicians. "advisor," Stoen, traveled to recruit new cult counterculture freaks. potential terrorists, etc .. and members. Though already a practicing bisexual, an "Opportunity High School." An estimated 75 Jones was bent further in that direction by a project percent of the students at the high school. where Jones sponsored by the Kinsey Institute (whose main offices taught. were recruited into his Peoples Temple ; an are at the University of Indiana's Bloomington equal percentage of those recruited traveled with campus that Jones attended earlier) and run out of Jones to Guyana in 1977. Glide Memorial. Dr. Kinsey, who founded the Glide Memorial and Project One were each Institute, was a close collaborator of Aldous Huxley. "chosen" by the SLA to carry out its "free food" Under the nominal direction of Rev. Cecil Williams, distribution program. Their connection with the SLA described by sources as a "less charismatic" variant went much deeper. Capt. H. Bruce Franklin, who of Jones, Glide was a nexus point for the New Left and worked with Fort at Project One. was also a close counterculture established by Huxley and Margaret associate of Rand Corporation research director Mead's former husband, Gregory Bateson - joining Daniel Ellsberg and MIT linguistics brainwasher elements of gay rights, women's liberation, and so on Noam Chomsky. who is now openly allied with the with support networks for such terrorist gangs as the Black Rose anarchist-terrorist networks in Canada. Symbionese Liberation Army. Actual control over Franklin was a founder of such Bay Area terrorist Cecil Williams was exercised by Ted McIlvenna, who groups as the SLA. the Venceremos Brigade, and the controlled Kinsey Institute funding of projects both at Maoist Revolutionary Union (now the Revolutionary Glide and the Peoples Temple. One of the projects at Communist Party) . As a controlling figure in the Glide that the Kinsey Institute sponsored, and that Haight-Ashbury Glide Memorial Church. which Jones is known to have participated in, was the served as a deployment point for the entire array of National Sex and Drug Forum, whose report released drug cults in the area. Franklin was instrumental in two years ago concluded that everyone was a building up Jones as a frequent "guest speaker" and homosexual ! Another Glide-based program was the leading figure in the ghetto and LSD culture. Council on Religion and Homosexuality. Although In 1971 the entirety of the Peoples Temple followers never himself known to have been associated with were moved from Ukiah to San Francisco. in a par­ Kinsey Institute projects at Glide personally, the allel to the current. more violent replay of the Isis myth "gay" networks created at Glide are known to have of cult members moving from the countryside to supported the electoral campaign of Harvey Milk, who destroy the cities. Appropriately, the site purchased was recently murdered in the aftermath of the for the new Temple was formerly known as the Albert Peoples Temple mass suicides (5) Pike Memorial Temple in commemoration of General Little is as yet known of early drug use - an Albert Pike. a founder of the Ku Klux Klan. together essential aspect of the brainwashing control of most with Judah Benjamin and Dr. Kuttner Baruch (the cults - by members of the Peoples Temple, although latter two also cofounders of the B'nai B'rith) and a Jones's association with various projects financed by key agent under Lord Palmerston in the explicitly the Eli Lilly Endowment, a fortune built by one of the satanic Scottish Rite of Freemasonry with Mazzini

16 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5 -11 , 1978 (the founder of the Mafia) and such leaders of the 1848 Notes======"revolutions" in Europe as Louis Blanc, Garibaldi, and Kossuth. Through this act, the story of Jones's life (1) The existence of the three trawlers off the coast of came full circle ; it was the Northwest branch of this Jonestown has been reported by AP, UPI, New York Tim es, Ne w York Post, and other press throughout their conspiracy that created the KKK in Indiana, a center coverage of the mass suicides by members of the Peoples for both the immediate predecessor of the Klan, the Temple. Knights of the Golden Circle, and of the Klan's 1920s (2) Extensive coverage of the Alinsky Institute and Saul revival by two agents of the Red Cross-Knights of Alinsky's Industrial Areas Foundation can be found in New Solidarity from spring 1973 to fall 1974. Among other Malta - of which Jones's father was a member. (6) connections between Alinsky and The East is the fact that It was Jones's position at the center of San a protege of Alinsky, Ron Karenga, developed the seven­ Francisco's growing pool of drug and ghetto zombies headed cobra symbol which was adopted 'by the Sym­ manufactured by MK-Ultra that attracted local bionese Liberation Army, and by Imamu Baraka while at mayoral candidate George Moscone, California the Institute. The Cobra symbol is a direct reference to the Egyptian cult of Isis. Les Campbell (aka Jitu Weusi) , the Governor Jerry Brown, and Vice-Presidential head of The East, also picked up this symbology while candidate Walter Mondale to Rev. Jones. He was working with Baraka. billed as a man who could deliver 2,000 bodies on a (3) "The Fellowship's Statement of Purpose," Fellowship , moment's notice to any political rally, and mobilize September 1965. "History of the Fellowship" (pamphlet) . the over 20,000 people by then affiliated with the "Walk to Begin January 31", WR L News, Number 191, Nov.-Dec., 1975. Interview with Barton Hunter, executive Temple to vote for any candidate of his choosing. director of the Fellowship of Reconciliation. Following Walter Mondale's infamous advice to "vote (4) Lilly Endowment funding of the Disciples of Christ early and vote often," Jones's goon squads were made Church, the Butler School of Religion, and both "left" and available to the Democratic Party for its 1976 "right" groups is documented in : Th e Foundation Center, Th e Foundation Grants In dex, Columbia University "Operation Big Vote Fraud" that was credited, Press, 1976, 1977, 1978. among other things, with swinging the election for (5) Information on the role of the Kinsey Institute was ob­ Moscone. When pressure mounted for a full investi­ tained from direct interviews with Ted McIlvenna, who gation, Peoples Temple attorney Tim Stoen was oversaw project funding to Glide Memorial Church and the Peoples Temple, and with three former associates of brought in to cover up the crime from his new position the Kinsey Institute's Sex and Drug Forum at Glide as assistant district attorney for the county. Jones per­ Memorial. sonally was awarded a seat on the San Francisco (6) Goldstein, Paul, "How Zionists orchestrate KKK terror," Housing Authority. Executive In telligence Revie w, Oct. 10-16, 1978, Vol. V, It was also shortly after the Temple's move into San No. 39. Francisco that Jones began to contact the Guyanese government to explore opening a settlement the re. Armed with letters of introduction from Mondale, Brown, Moscone, and other Democratic Party officials, Jones's Peoples TClnple was considered an ideal candidate under a new "black" immigration program established by the Guyanese government called Operation MIREV. After 20 Temple members visited the country in 1973, arrangements were made for the lease of 27,000 acres for the founding of "Jonestown" near Guyana's border with Venezuela. In 1977 the first major steps were taken to trigger Jones's paranoid schizophrenic personality when Tim Stoen dropped out to form the Concerned Parents group, taking Jones to court for control of a child whose paternity was in question. According to Charles Garry, a former attorney for Angela Da vis, the CPUSA leader closely associated with H. Bruce Franklin and Huxley associate Herbert Marcuse, Jones threatened to have 300 cult members commit suicide on the spot if Stoen pursued his law suit. Also in 1977, British publisher Rupert Murdoch printed a major piece on the Peoples Temple in his Ne w West magazine, designed to further trigger Jones's paranoia. It was this piece which also launched Congressman Ryan's fatal investigation into conditions in Jonestown. - Scott Th ompson

Oecember S- 11,1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 17 Ultra

The immediate source for the Port Kaituma mass Although MK-Ultra was a CIA black operation murder-suicide can be partially traced to a recent nominally under the control of Dulles, it was in reality closed-door meeting of the Aspen Institute for Human­ a British intelligence operation run into the United istic Studies in West Berlin, at which Rand Corpora­ States under the cover of the CIA and the Rand tion terrorist controller Brian Jenkins gave a five­ Corporation. Furthermore. the presence of the Office hour presentation on coming terrorist scenarios. The of Naval Intelligence and Air Force Intelligence in the Jenkins scenario, which emphasized the time-bomb original -Operation Artichoke and MK-Ultra task quality of cults as sources of terrorism, was given just force. and the subsequent importance of trained prior to the bloodbath carried out by Rev. Jimmy operatives of ONI and Air Force Intelligence in the Jones's Peoples Temple in Guyana. creation of U.S. -based terrorist cults. points to heavy The Rand connection, along with the appearance of contamination of these agencies in particular by Dr. Joel Fort, lawyer Mark Lane, and the Glide British SIS. Memorial Church of Berkeley, California in the dossier on Rev. Jimmy Jones confirms, in shorthand, that Jones's death cult is the offspring of British Th e British priesthood intelligence's 50-year campaign in the United States to create cult formations among the general population The three British intelligence agents heading up MK­ through the use of drugs and Dionysian rituals. Ultra as research directors from 1952 on were Aldous In official channels, the British Secret Intelligence Huxley, Albert Hoffman of the Warburg-owned San­ Services' experiment was run under former CIA Dir­ doz drug firm (where Hoffman first synthesized LSD ector Allen Dulles, and conduited through the Central in 1943), and Humphrey Osmond, a close Huxley Intelligence Agency, under the codename MK-Ultra. family friend and physician based at the University of The project, first named Operation Bluebird in 1949, London Hospital where he studied schizophrenia. then Operation Artichoke, and renamed MK-Ultra in The key American researcher complicit with 1953 under direct orders from Dulles, studied the Huxley, Hoffman, and Osmond was Gregory Bateson, application of LSD, psylocibin (hallucinogenic husband of the late Dame Margaret Mead of the Order mushrooms), peyote, and other hallucinogens in of St. John of Jerusalem. Bateson headed a Veterans mind-control and brainwashing techniques. The early Hospital in Palo Alto. California where he aided in phases involved the administration of hallucinogens to criminal experiments administering LSD to patients volunteers in university, hospital, and mental in­ in the hospital. Bateson is currently a special advisor stitution settings. By 1963, it was openly stated in a to California's Governor Jerry Brown - the politician CIA document that "the final phase of testing MK­ with whom Reverend Jimmy Jones maintained a Ultra materials involves their application to unwitting close relationship for many years. subjects in normal life settings," a phase which began Huxley was not merely the ranking British intelli­ on the U.S. West Coast in 1955, and which by the late gence officer in the MK-Ultra infiltration project, but 1960s had created thousands of counterculture he was literally a high priest of the drug cult that grew followers of the cult of LSD and other hallucinogens, out of the California experiments. Aldous Huxley, aided by the importation and mass marketing of along with his brother Julian. was tutored at Oxford British ritualistic rock music. University. England in the 1920s by futurist H.G.

18 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5 - 11. 1978 Wells, head of British foreign intelligence during LSD team. including Leary and associate Richard World War I. Wells's writings and those of his proteges Alpert. who later became "guru" Baba Ram Das. the Huxleys and George Orwell, such as The Time This circle created a following of thousands of LSD Ma chine, Bra ve Ne w World, 1984 and Animal Farm, veterans who were then deployed to proselytize for spelled out in fictional form the mind-control that MK­ drugs. Ultra was later to implement. One direct result of the Huxley Harvard operation In 1929, under the influence of occultist Aleister was the International Federation for Internal Crowley. Aldous Huxley was initiated into the Isis­ Freedom Psychedelic Training Center in Zihuatenejo. Urania Temple of Hermetic Students of the Golden Mexico. set up and headed by Leary in 1963. Zi­ Dawn. a secret cult tracing back to the Scottish Rites huatenejo. an isolated Mexican resort town. was the of the Freemasons and run directly out of the British site for a two-year project involving 500 people - Colonial Office. At the same time. Crowley introduced chosen. according to Leary. out of over 5.000 appli­ Huxley to hallucinogenic drugs. cants. The objective of Zihuatenejo was to train psy­ From 1937 to 1945. Huxley lived in California where chologists and other professionals. religious leaders. he worked as a Hollywood scriptwriter along with teachers. etc . in the values of psychedelic drug use. Christopher Isherwood and other British operatives. The center administered LSD to residents several Isherwood had been a British intelligence agent sta­ times a week. conducting group sessions based on the tioned in Weimar Berlin through the 1920s, special­ Boston work of Leary and Alpert. the writings of izing in cultural subversion projects. During this Huxley. and particularly Leary's translation of the period, Huxley and Isherwood organized cults around Tibetan Book of the Dead. The Tibetan sacred book the Isis Temple of the Golden Dawn and the trans­ was to be read by participants before taking the LSD. lation of Eastern mystical documents. Preliminary then read aloud by another person as the subject sank investigations suggest that one of the centers of Isis into a schizophrenic state. cult activity founded by the Huxley team in 1937-1945 Indeed. the death experience attitude was a central was Ukia. Cal. - later the West Coast center of Jones' consideration of the center's profiling. After an LSD Peoples Temple. experience. one group showed that: "Some now felt Huxley's critical training occurred in Britain from convinced that there is no death. that life is really con­ 1945 to 1952 when. in tandem with the British Psycholo­ tinuous despite physical change. Death to them now gical Warfare Division (then centered at the London seems simply continuation toward the mystical goal of Tavistock Institute). he organized a study group at the oneness with God. ... Associated with lessened London National Hospital with Osmond on inducing anxiety. greater acceptance of death ..." (Richard schizophrenic states through the taking of mescaline. Blum and associates Utopiates. London: Tavistock Subsequently. Osmond was hired by Allen Dulles to Publications. 1965). play a leading role in the MK-Ultra project. In 1953. in The names of the participants in the Zihuatenejo the U.S., Osmond gave Huxley a supply of mescaline project have never been made public although they in­ for his personal consumption. The next year. as the cluded clinical psychologists. ministers. teachers. and result of his psychedelic experience. Huxley wrote businessmen. In 1963, during the second year of its The Doors of Perception. the first public manifesto of operation. the center was closed by Mexican author­ the drug cult. advocating "expanded consciousness ities. through hallucinogens." It is known that the Mexican project was one feature of the "private." i.e .. nongovernmental. side of MK­ Ultra. The above-cited 1965 Tavistock Institute report U.S. drug networks in place also featured reports by Timothy Leary. Richard Alpert. and San Francisco's Dr. Joel Fort. who has By 1954. MK-Ultra was fully operational. Dr. Timothy already been identified as a principal figure in the Leary was already conducting LSD experi­ creation of Jones's Peoples Temple. ments at Harvard University. Hoffman had been Simultaneously. the Rand Corporation, home of brought to the United States for continued MK-Ultra present-day terrorist specialist Brian Jenkins. was work. And Huxley returned to California where he re­ conducting a "medically oriented" experiment in cruited his 1937-45 associates Bateson and Alan Watts. LSD. According to a 1962 Rand Abstract. W.H. who later became a propagandist for study of Eastern McGlothlin conducted a preparatory study on the religions. Osmond. meanwhile. was stationed at the "Longlasting Effects of LSD on Certain Attitudes in New Jersey Neuro-Psychiatric Institute in Princeton. Normals: An Experimental ProposaL" The following N.J .. conducting experiments on the effects of LSD in year, McGlothlin conducted a year-long experiment schizophrenia. with 30 human guinea pigs. called "Short-Term In 1960. as MK-Ultra entered its "final phases." Effects of LSD on Anxiety. Attitudes and Per­ Huxley was appointed Visiting Professor at the formance." The study incredibly concluded that LSD Massachusetts Institute of Technology in Boston. improved emotional attitudes and helped resolve There he created a circle paralleling his West Coast anxiety !

Oecember S-11,1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 19 Also in California, the guinea pigs at Bateson's Palo Alto Veterans Hospital were being groomed as future leaders of the drugged Isis cult. Foremost among The media cultists Bateson's recruits was Ken Kesey who received his first LSD dose from Bateson in 1959. Other "subjects" Even in the atmosphere of untrammeled included Jerry Garcia, later the founder of the Grate­ sensationalism that followed the Jones cult mass ful Dead rock band. Another outstanding member of suicide, Rupert Murdoch's New York Post the Grateful Dead is the son of Wharton School pro­ managed to sink lower than even the orgy-of­ fessor Eric Trist, the leading Tavistock Institute death-peddling competition. "Deathcults on the operative in the United States and a principal con­ warpath" ; "Death in the jungle" ; "Slain aide troller of the MOVE black terrorist gang that recently knew he'd be killed" ran each day's banner head­ staged a gun battle with Philadelphia police. lines. For political impact, Murdoch, a protege Much of the LSD used to build the Isis counter­ of British press peer Lord Beaverbrook, went culture cult in the Haight-Asbury section of San page one with a story of extremely dubious Francisco found its way into the streets from MK­ vintage headed "Jones cult planned to move to Ultra channels. In 1963, when Leary left Harvard, the Russia," a story relegated by most of Murdoch's Leary LSD operations were funded principally by yellow-journal competitors to the back pages. Billy Mellon Hitchcock. Hitchcock's contributions to A Post editorial enjoined "Stop the evil." But Leary were paid out through a British West Indies con­ the Post continues to act as evil's propagandist. duit known as the Fiduciary Trust - a wholly con­ Murdoch's lurid brand of journalism was trolled subsidiary of the Investors' Overseas Service, brought to New York not to make money (as our which is and was an Israeli dirty-money operation co­ last issue revealed, it's already lost Murdoch $18 ordinated on the U.S. side through the New York million on a newspaper that cost him $30 million holding company, the Dreyfuss Corporation. Hitch­ in the first place) but to act as the media sup­ cock, an heir to the Mellon banking family of Pitts­ porter of the Big MAC operation, whose can­ burgh, not only funded Leary's pet projects, but nibalistic practices usually go under the financed Leary's Brotherhood of Eternal Love as a euphemism of "austerity." major hashish marketing and LSD manufacturing Another media star that thinks cultism is good operation which was based, like Jones's Peoples business is NBC, which this year has become the Temple, in California and the Caribbean. National Broadcaster of Cults. Long before the In 1968, Leary, Ken Kesey, Alan Watts, and homo­ Jonestown events, NBC was popularizing cult sexual poet Allen Ginsberg from New York organized beliefs . For example, its widely touted "Holo­ the so-called Summer of Love. This nationwide Dio­ caust" series fulfilled the Zionist lobby pro­ nysian celebration provided the context for a massive paganda requirements for instilling necrophiliac infusion of drugs into every part of the USA which left paranoia in U.S. and Israeli citizens. thousands of youth ravaged by their first experiences Rev. Jones got what he wanted by getting with addictive and hallucinogenic chemicals. To people to lose their grip on reality. NBC is look­ service the psychological disorders and human ing to do the same with the whole United States. misery resulting from the drug epidemic, institutions Even before the Jones blowout, NBC undertook a such as the Haight-Ashbury Free Medical Clinic were comprehensive series on such U.S. brainwashees created. Today, these clinics serve as centers for the as Synanon and the Hare Krishnas, to inculcate movement to decriminalize "recreational" drugs, and the line that "the future of the world is in the as recruiting centers for cult outfits such as the Glide hands of the cults." Now it has announced a new Memorial Church and Jones's People's Temple. bombshell, "Masada," about 900-plus Jews who, Dr. Joel Fort's Project One mental health clinic in rather than fall into the hands of Roman legion­ San Francisco was part of the network of clinics set up aires, killed themselves en masse. to service the growing number of youth who quickly But does cultism pay? Murdoch and NBC may went from marijuana and an occasional hallucino­ find there's "room for one more" in the Kool-aid genic trip to hard-core heroin addiction and psychosis. set. Murdoch has been losing so much money on Post - Michelle Steinberg the that last week he was forced to cancel the recently inaugurated Sunday edition, after his planned New York morning tabloid, the Sun, failed to get off the drawing boards. And also last week, NBC canceled half its weekly pro­ gramming after a grim look at the ratings.

20 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5 -11. 1978 Kennedy's hospi ce movement: 'death with dignity' for all

Odell Rhodes, an eyewitness to the Jon esto wn mass Canadian in telligence services, and th e leading aWes suicide, presented a chilling picture to NBC reporters of British policy in the Un ited States. and a na tion wide television audience on No v. 25. In its Oct. 6 edition, New Solidarity printed an ex­ According to Rhodes, as hundreds of people were pose of the hospice movem ent, particularly Ted seized by con vulsions a grim Rev. Jim Jones in toned Kennedy's role in furthering it, tha t warned th at the over the compound's public address system, "Die with movement's dea th-idola try would go into high gear dignity. " soon after the No vem ber elections. We reprin t that Just seven weeks before, a closed-door session wa s expose here. held in Wa shington, D. C. under th e sponsorship of the Na tional Hospice Orga nization on th e same "die with On Oct. 5 in Washington. D.C., Sen. Edward Kennedy dignity" th em e. But the speakers were Sena tor Ed­ and HEW Secretary Joseph Califano. among others, ward Kennedy, HE W Secretary Joseph Califano, and will address the First Annual National Hospice Organization Meeting to kick off a nationwide cam­ a host of other dign itaries. paign to create a death cult in America. Th e Oct. 5 gathering marked th e end of a year-long The hospice movement, which traces its origins campaign by the Order of St. John of Jerusalem to directly to the 11 th century clinics for the terminally introduce the British hospice movement into the ill of the Order of St. John of Jerusalem, prescribes the USA , a movement that tra ces back to th e th century 11 following program of health care for Americans : death clinics for the terminally ill fo unded by the widespread use of hard pain-killing drugs such as Order at its Cyprus and Rhodes fortresses. With well­ heroin and cocaine ; destruction of advanced medical manicured phrases like "the righ t to die, " "living life-preserving practices and research ; and wills, " and "dea th with dign ity, " th e Order has taken acceptance of as the first step toward public lea dership of a movement to make the dea th­ generalized genocide against the elderly, the seriously cultism of a Jon esto wn th e norm for America . ill. and other "useless eaters." "Concern for the dying " is th e pretext to force not only In the next month the American population will be acceptance and even embra ce of dea th, but the inundated by over 100 newly released books focusing corollaries of mind-killing drug use and the on the subject of "death with dignity." This philosophy destruction of modern hea lth care and all other forms of death is aimed at subverting the American commit­ of hated technology. ment to constantly upgrading the conditions of life Th e Order of St. John itself, is not a fringe cult like through scientific and technological progress and. the Rev. Jon es 's Temple. On the contrary. Th e Most instead. conditioning the population to accept geno­ Venera ble Military and Hospitaller Order of St. John cide against "marginal" layers of U.S. citizens. of Jerusalem is the most prestigious "secret" Under the cover of advancing a new treatment for orga niza tion of th e oligarchy of Western Europe. Its terminally ill patients experiencing constant pain, the mem bers include the most promin ent London mer­ hospice movement plays an active part in the chant bankers who stand behind the World Bank-Inter­ campaign to proliferate drugs in America. Operating national Mon etary Fund policy of narcotics as a Th ird through organizations like the National Committee on World cash export crop, top officials of British and the Treatment of Intractable Pain (NCTIP) , the

December 5- 11. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 21 hospice movement has hooked up with drug lobbies rephrasing the fifth commandment to "Thou shalt like the National Organization for the Reform of not kill. yet need not strive officiously to keep alive." Marijuana Laws (NORML) to weaken U.S. drug laws Nurses employed at hospices are instructed to get and legalize drugs such as marijuana. heroin. cocaine. "personally involved" with their dying patients by and LSD for "medical purposes." hugging and caressing them. In one proposed hospice The political center of this movement in the U.S. facility planned for Connecticut. the nurses and staff however. is Sen. Edward Kennedy and his political will be provided with a carpeted. windowless room machine. Through the combination of his criminal called the "screaming room" where the staff can code reform (SI437) and his national health-care bill. "cool the psyche." in the words of the architect. Kennedy has incorporated every basic tenet of the Beneath its veneer of concern for the agonies of the hospice movement into his proposed legislation. dying. the purpose of the hospice is to undermine any and all advanced technological application to medical practice. medical science. and society as a whole. The new cult of Isis Stoddard states this clearly: "The hospice teaches a new attitude." explained Dr. Liegner. "with the realization and conscious The hospice movement's glorification of death marks acceptance of dying and death as part of being it as the present-day heir to the ancient Egyptian cult born and part of the struggle of life." If the dying of Isis and Osiris. The Egyptian cult drew its members patient can be perceived first as a person. and as together on the basi's of a celebration of death and a an individual accomplishing an important part of death oath against the city-builder faction in Egypt. The leading ideologue for the revival of this ancient death cult today is Sandol Stoddard. author of The Hospice Movement : A Better Way of Caring for the Dying. Building a 'grass- The central idea behind the programs of the hospice movement is that the experience of dying should be From Victor and Rosemary Zorza '5 column in the the focus of attention for the living. and that all living New York Post of Oct. 19: people. including children. should experience some facet of death in the most primitive and "direct" Some politicians believe that a new grass-roots fashion in order to live a more gratifying life. movement is taking shape in the United States. According to Stoddard. America is a "death-denying comparable in some ways to the great movements society." "The hospice concept is the realization that for civil rights and against the Vietnam War. The our entire planet has now become one village seeking comparison was made by Sen. Edward M. Kennedy to be healed." she writes. "With the hospice concept in (D-Mass.) when he addressed the first national our culture. many of us may discover that we are convention of the hospice movement in Washington learning from the sick how to be well again. and from last week - and some of his views were echoed the dying how to live." from the other side of the political fence by Sen. Bob Stoddard and the other creators of this new cult of Dole (R-Kan.). Isis have developed a complete brainwashing pro­ What is it about hospice that can stir people's gram for inculcating death worship in society. emotions to the point at which two such disparate starting with the family of a terminally ill patient. The politicians feel moved to declare their commit­ family is led through a series of counseling sessions. ment to the idea and to pledge their support of the including "comfort control" for the ill. patient and movement? family education and support. total hospice care The hospice groups now springing up around the during the dying process itself and bereavement country are responding to one of the deepest needs counseling. Exemplary of the "counseling" practiced in all of us - the need to feel that when our time to by the hospice brainwashers is encouraging young die comes, we will be able to do so in conditions that children to adjust to the loss of a loved one by getting reduce the physical suffering and the spiritual into bed with the deceased to express his final farewell. anguish to the minimum. In the hospice setting, the

The St. Francis Burial and Counseling Society. Inc .• in dying patient can even feel "happy" at the way a Washington. D.C .. one of the counseling organizations previously dreaded experience turns out to hold no involved in the hospice movement. also suggests that terror - as our own daughter told us she was happy a person buy "a simple casket and use it for other when she was dying in a hospice last year .... purposes before its final service." One man who visited a patient of the New Haven Certain "Christians" are reworking theology to (Conn.) hospice recently has come away a different support the cult of death and hospices. and to edge person because of the experience. The two talked towards acceptance of euthanasia. The March 1978 for a few moments, and the visitor realized that the issue of the u.s. Catholic was devoted to this question. cancer patient, a man of nearly 70, felt more noting that "most Christian moralists" agree with

22 SPECIAL REPORT December 5 -11, 1978 EXECUTIVE INTELLIGENCE REVIEW a full life-cycle, then care givers can concentrate psychology of war, force is imperative. Therefore upon giving what is really needed in the situation. we arrive at the strange, new embrace that pins They can actively prevent the interference of the inert body of a man or woman, terminally ill, mindless technological tricks, and can instead to a machine which forces that person's body to provide surcease from physical and emotional breathe without even knowing its name." pain. They can offer, instead of mechanical And Stoddard lashes out at advanced industrial resuscitation, a hospitable place in which the society's "alienation" of the individual: personal and spiritual growth of the individual can "The new unit of society was economic man. The continue during the process of dying." purpose of hospitals in an industrial society is to Stoddard compares modern, advanced hospital care mend machine tools, or to lock up separately those to a war zone where patients are prisoners of life­ such as orphans, the insane, or the contagious, sustaining equipment : who may prove useful at some later date : "There is a mystique about this wa:o against death hospitals as storage bins for society's spare parts that makes us turn our heads away from those ...human life is only a machine." who are hopelessly, incurably ill ; and also from Purporting to characterize industrial society's view those who are quite consciously ready to die. of man, Stoddard reveals her own ideology. These are the ones who disturb our picture of the The model for American hospices is St. Christ­ way things ought to be. From hospes (Latin for opher's Hospice in London. Established in 1967, St. host, guest - ed.) to hospital, the psychology has Christopher's was the first "modern" hospice to changed from one of love to one of war, and in the incorporate all of the pyschological warfare tech­ niques developed by the Tavistock Institute during World War II. However, the history of hospices goes back to the 11th century, when the Poor Brothers of roots movement' the Hospital of St. John organized the first hospice on the island of Cyprus. The Hospitallers, later the Order of St. John of Jeru­ comfortable about the conversation than he did. salem, moved to the island of Rhodes, where they set "He had come to terms with the idea of dying," the up one of the largest hospices in existence. There, for visitor recalls. "I had not. I was 47 years old, and I the first time, "patients with incurable diseases were had never come really close to someone who was separated from all others." To this day, the Knights of dying." St. John control and deploy the hospice movement. That visit will have momentous consequences, From the beginning, the Knights specialized in the for the visitor was Joseph Califano, secretary of use of "potions" and elixirs to "ease the pain" of their health, education and welfare, who has since in­ patients - and enemies - permanently. Today one of structed his staff to devise a number of steps to ease the major objectives of the hospice movement is to the progress of the hospice movement, pending the increase drug use and replace technology-oriented more elaborate measures that can only be taken medicine with drug taking. One of the Order's major after more detailed study and legislation. The visit, Califano says, made him realize that he had been evil contributions is the so-called Brompton Mix, which was developed at St. Christopher's in 1967. The shielded from the idea of dying, that he was the product of an "enlightened" society that had mix is administered every three or four hours, day banished the idea of death .... and night, until the patient dies. Califano's visit helped him to break the taboo. It was an intensely personal experience , but the result Death camps with lace curtains of it - coupled with an HEW study - will enable the bureaucracy to waive some of the restrictions Who is pushing the "die with dignity" cult? on fees paid by Medicare and Medicaid for hospice SENATOR EDWARD KENNEDY is the key promoter care. for implementing IMF austerity conditions in the U.S., But that is only a small beginning. Califano was exemplified in all of his proposed legislation : deeply impressed by the spontaneity and en­ • Author of Senate Bill S.1437, which proposes to re­ thusiasm he found in the hospice movement, and he write the entirety of U.S. criminal codes, calls for the is concerned about the danger of upsetting the deli­ decriminalization of marijuana, and a reduction in the cate mechanism of private and voluntary effort by penalties for possession and sale of other controlled federal intervention. "Our challenge is to nourish substances. this movement," he says, "not to force-feed it." • As initiator of Proj ect 87, along with the Brookings It will be up to the Congress to decide what Institution, Kennedy has decided that the "Constitution constitutes adequate nourishment. This is where has outlived its usefulness" and is organizing the re­ the pledges of such men as Kennedy and Dole writing of the U.S. Constitution. assume a particular importance .... • Kennedy's proposed National Health Bill is designed to dismantle America's advanced medical system and

SPECIAL REPORT 23 December 5-11, 1978 EXECUTIVE INTELLIGENCE REVIEW replace hospitals with hospices based on cost cutting. in 1971. is the key spokesman for death cult ideology: and stresses out-patient care. • She was trained by the U.S. wartime intelligence • His proposed Pharmaceutical Bill. working in organization OSS in military systems analysis and conjunction with the National Institute on Drug Abuse. population control. advocates the creation of a special center to study • As director of psychiatry at the University of heroin. LSD and other controlled substances for the Chicago's Billings Hospital in 1969. Ross set up the possible use of these drugs for medicinal purposes. first seminars with terminally ill patients which later • Kennedy openly endorses the hospice movement and became the subject for the first major book based on will deliver a keynote address. "Hospice Care in the "death with dignity." U.S. Health Delivery System." at the First Annual • Ross's book Death and Dying espouses the line that National Hospice Organization meeting in Washing­ Americans deny the reality of death and are less ad­ ton. D.C. Oct. 5. vanced than Samoans and Alaskan peasants who • The Joseph and Rose Kennedy Institute for the Study accept death scientifically. with acceptance and resig­ of Human Reproduction and Bioethics at Georgetown nation.

University. providing tax-exempt support for Senator • Ross has recruited over 75 hospice teams ready to Kennedy's death-dealing "health care" proposals. disperse throughout the country to organize for the stands squarely behind the hospice movement. death cult. After the October hospice meeting. Ross Director Dr. Andre Hellegers noted that . Sen. Ted will begin a massive recruitment campaign. touring Kennedy felt "Congress was disenchanted with the the country to promote her book. way health care costs had gone so high ....Congre ss was less interested in massively financing basic re­ DR. NORMAN ZINBERG, a long-time advocate of the search. but more interested in applied research that "nonabusive effects" of marijuana. heroin. LSD. has brings down health care costs." This. Hellegers published 67 studies on drugs : stated. made him think "the public as a whole has to • As a consultant to the Department of Defense. realize that as you approach the end of the genetic life Zinberg played a leading role in flooding Vietnam with span. not dying from one cause makes you die of drugs. through his profiles of drug use among de­ another cause .... If you believe as I do that eternal moralized American soldiers. life is more the product of the clergy than a function of • He is a founding member both of NORML and the physicians. you had better consider how you would NCTIP. groups which advocate the use of drugs for like to pass from the here-and-now to the hereafter medical purposes. NORML is lobbying for legalized and what it will cost in kind and suffering." personal possession and use of drugs. • Zinberg has played a leading role in the Drug Abuse JOSEPH CALIFANO. Secretary of Health. Education Council since 1975 and has endorsed the Office of Drug and Welfare. is the chief implementor of austerity Abuse's call for the decriminalization of all drugs for measures working within the Federal government: "further scientific study." • As Special Assistant to the President on Domestic Affairs under President Johnson. Califano played a The Oct. 5 national hospice conference will provide leading role in the Appalachian Regional Planning the movement's leaders with a critically important Commission which implemented labor-intensive work reading of just how widespread is the support for projects throughout the area. "living with death" in the United States. Indications • Califano is actively coordinating with Hospice. Inc. are. however. that the movement will continue a fairly in New Haven to review HEW standards for Medicaid low profile until after the November elections. At that and Medicare so that these programs cover hospice point. nothing will stand in the way of the "grim treatment. Recently. Califano granted one million reapers" proceeding with a national campaign to dollars to Hospice. Inc. to "prove a justifiable case for introduce bills into state legislatures endorsing "alter­ the therapeutic advantages of heroin." native" hospice treatment plans for the aged and ter­ • Califano will also attend and address the National minally ill. bills to legalize hard drugs for medical pur­ Hospice Organization meeting in Washington. D.C. poses. and bills to extend Medicaid and Medicare Oct. 5. benefits to cover hospice care. - Karen Steinherz DR. ELIZABETH KUBLER-ROSS. chairman of the Marie Mendez Hospice National Advisory Council since its inception

24 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December S -11.1978 Dionysus is loose in Ca lifornia . I'm proud to infamous "Merry Pranksters" operations of Ken be here. Th e state 's not putting anybody to Kesey and others, it had destroyed thousands and sleep .... Th is must put the SLA to shame, thousands of America's youth. they could never accomplish wh at Jim my With the establishment of cultist Jerry Brown as the Jones did ...I didn 't know Jim my Jones per­ governor of California. MK-Ultra became the govern­ sonally, but many of my cro wd are saying ment of California. Brown's leading advisors are the good things about him, and about many of th e leaders of the Kennedy-linked support operations for things he wa s doing .... Charlie Ma nson, of the development of the counterculture, and his govern­ course, wa s using our tools and techniques ment and personal friends include top operatives of fro m the Merry Pra nkster days. MK-Ultra and associated networks. They include :

These are not the ramblings of some spaced-out GREGORY BATESON: controller of the initiating zombie in the backwoods of California. They are the MK-Ultra experiments at the Palo Alto. Calif. comments of Stewart Brand, a top advisor to Cali­ Veterans Administration Hospital from 1950-1962. fornia Governor Jerry Brown, on the Guyana massa­ Bateson is a Cambridge University-trained "an­ cre and the Moscone-Milk murders, in an interview thropologist, " friend of Huxley's from the 1920s, for 15 immediately following these events. years husband of the late Margaret Mead, and a Stewart Brand is not only the founder of Th e Wh ole regional ethnology specialist in the Office of Strategic Earth Catalogue, the Sears catalogue of the counter­ Services from 1944 to 1947. Bateson was the personal culture. which members of Jim Jones's Peoples psychiatrist of Alan Watts, Buddhist guru and foun­ Temple carried in their luggage when they left for der, with Huxley, of the Esalen Institute. In the 1950s, Guyana ; he is an official advisor to California's Bateson became spiritual leader and drug supplier for Governor Jerry Brown . As Brand's comment illus­ a group of young artists gathered through Stanford trates, the mass suicide of the California-based cult University. the Palo Alto VA Hospital, and California and the brutal murders on Nov. 27 of San Francisco School of Fine Arts in San Francisco. This group Mayor George Moscone and City Supervisor Harvey became the original Merry Pranksters. Bateson ad­ Milk are no coincidence. They are the conscious result dressed Jerry Brown's State Prayer Breakfast in 1976 of a 40-year operation to turn California into a state on the subject of peyote. He is currently a Brown ap­ run on the social-control principles laid out in Aldous pointee to the California State Board of Regents and a Huxley's Bra ve Ne w World. That operation was di­ Scholar in Residence at the Esalen Institute. rected primarily through the MK-Ultra experiment in the use of hallucinogenic drugs in mind-control and STEWART BRAND : an original Merry Prankster, re­ brainwashing. The final phase of that operation was cruited by Bateson, publisher and editor of Th e Wh ole the creation of a mass countercultural movement of Earth Catalogue and its successor CoEvolution Quar­ LSD cults of rock music and ritualistic death. de­ terly. Brand is an official "special consultant" to scribed in recent FOIA documents as the "testing of Brown. who Brand recently described in print as "in MK-Ultra materials ... on unwitting subjects in effect ... a contributing editor for CoEvolution Quar­ normal life settings." By the late 1960s, spread by the terly, at no pay."

December 5-11. 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 25 KEN KESEY: leader of the Merry Pranksters and Ultra operative Dr. Joel Fort, who later helped found orchestrator of the so-called "Electric Kool-Aid Acid Project One. Test." Kesey. a former jailbird. was invited by Brown Parallel to the "hippie" developments in the Haight, in October 1977 to address the governor's staff on the the culture of "political" was being developed subject of police practices. in Berkeley. out of the refuse of the Berkeley Free Speech Movement of the early 1960s. SIM VAN DER RYN: key provocateur of Berkeley's By the second half of the 1960s a major migration of "People's Park" riots ; technical advisor to Brand's these elements to northern California had begun. The CO ; protege of Buckminster Fuller. founder of the key figure in directing this migration was anarchist­ Farralones Institute. a West Coast think tank special­ terrorist Murray Bookchin. a personal friend of izing in solar energy research. Van der Ryn met Bateson, who is today key controller of Spain's Basque Brown at the San Francisco Zen Center ; he was ap­ terrorists. Allan Hoffman, a personal protege of Book­ pointed the California State Architect and head of the chin's and leader of the New York-based "Mother­ Brown-created State Department of Appropriate fuckers," a Diggers-type group controlled by Book­ Technologies. chin, moved to California and began organizing ele­ ments of the Diggers, the Hells Angels. and the THEODORA KROEBER-QUINN: British-trained Motherfuckers into a network of primitive communes anthropologist. close friend of Bateson's. author of centered around Ukiah, the same city to which Jim Ishi in Two Worlds, a cult anthropology book which Jones also took his followers in the mid-1960s. develops themes originating in Brave New World. At the same time Bookchin personally intervened in Appointed by Brown to the State Board of Regents. the network of political communes in Berkeley during a 1967 tour of the West Coast. He called for the estab­ ZENTATSU BAKER-ROSHI : Zen "priest," head of lishment of a parallel support network of rural com­ the San Francisco Zen Center. where Brown goes to munes for "rest and recreation" and study purposes. meditate. Baker-Roshi is one of a string of gurus, Like the Jones cult, the Diggers and Bookchin's including MK-Ultra operative Baba Ram Das, the "politicos" based their plans on the need to survive an former Richard Alpert, who have advised Brown on inevitable nuclear holocaust. The California network "spiritual" matters. Baker-Roshi's Zen Center was created on this basis has since functioned as a safe­ founded in 1959 with aid from Alan Watts, who accord­ house network for every terrorist operation run ing to a representative of the Center "may still be through California since that time - including the associated with us, but I don't know since he's passed Symbionese Liberation Army and the Weathermen. over."

By the time of San Francisco's 1968 "Summer of The creation of Jerry Brown Love." the number of "freaks" in California had reached major proportions. Haight-Asbury was run Literally every cult operation was created or directly by the so-called "Diggers," which included key supported by these or other known MK-Ultra net­ figures previously involved in the founding of the Los works : "est" and Mind Dynamics, both channeled Angeles Free Press. one of the earliest models for the through Esalen ; Transactional Analysis, founded by underground press, which would later be instrumental Langley-Porter's Eric Burn ; Hare Krishnas and other in the success of Jerry Brown's first electoral cam­ pseudo-Indian "mystic" groups, directed through net­ paign. Haight leaders held their power on the basis of works directly affiliated with Bateson. their known connections to MK-Ultra drug sources. Simultaneous with the development of mass-based Their control of San Francisco's LSD culture was cultism in California, former Jesuit seminarian Jerry institutionalized in the creation of the Haight-Asbury Brown was being developed on a parallel track as the Free Clinic. which was founded by an MK-Ultra con­ perfect figurehead for an MK-Ultra government. nected psychiatrist. Ernest Dernberg, and Roger Brown is a totally synthetic politician, a combina­ Smith. street-gang organizer and parole officer of. tion of the brainwashing apparatus of MK-Ultra with later mass murderer Charles Manson. the heavily entrenched Hollywood-based Kennedy The clinic was itself controlled through the Langley­ machine in California which together put him into Porter Clinic. where Bateson had worked before his power. Brown's entire career (even given his position term at the Palo Alto VA Hospital. and which directly as the son of a popular former governor) is inexpli­ took part in MK-Ultra related experiments. The cable except as a totally controlled media proj ect of Haight clinic was the first in a city-wide network of these two apparats. drug clinics which included the North East Mental That project critically included the wrecking of the Health Clinic and the Los Siete Clinic, which were con­ legitimate political networks which had led California nected to what one key NEMH staffer described as the during its postwar development boom. Even before Black Liberation Army's "underground railroad," running for Governor, Brown and his Kennedy-trained and the Delancey Street Foundation, directed by MK- lawyer associates were working with outfits like

26 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5 - 11. 1978 Common Cause to watergate California politicians on after two tries and signing up with the prestigious Los grounds of "illegal campaign financing" and similar Angeles law firm of Tuttle and Taylor, in 1965. issues. The Brown candidacy of 1974, interestingly, In the late 1960s Jerry Brown became active in the was only successful over the political "dead body" of antiwar movement and Eugene McCarthy's presi­ San Francisco Mayor Joseph Alioto, the front-runner dential campaign, attending the Democratic Con­ for the Democratic Party nomination, who was de­ vention as an alternate delegate for him. Brown was stroyed by a media brouhaha over alleged "mafia con­ already being groomed as a youth-guru political nections," after his city had been brutalized by suc­ figure, and by the time he announced his first cam­ cessive waves of SLA, "zombie killer," and BLA paign for public office in late 1968, it was understood terrorism by the MK-Ultra network. among friends and associates that this was only the The use of heavy media manipulation was opening salvo of a campaign for much bigger stakes. developed to its height in Brown's campaigns. His Brown ran and won election that year to the Los campaign for governor was actually based on a stra­ Angeles Junior College Board, entirely on the strength tegy of staying out of sight and giving huge media play of his father's name, with media hype from Los to his name. Brown's key campaign advisor and later Angeles Free Press networks. He served only one and executive secretary, Grey Davis, was trained in the a half years of a four-year term, using the position to 1972 Los Angeles mayoralty campaign of Tom Bradley get maximum press coverage. Brown's press aide at under the special direction of David Garth. Garth is a that time, and a close associate since, Tom Quinn former member of the Army Security Agency, a (Brown was no doubt the only Junior College Board trained clinical psychoanalyst and McLuhanite brain­ member with a press aide) , has been described by one washer who has recently gained notoriety directing reporter as "essentially programming Brown to get the campaigns of, among others, New York Governor the greatest amounts of publicity." Brown managed in Carey and New York City gay rights Mayor Koch. that short time to advocate a variety of California Jerry Brown was picked up as a perfect combina­ "radical" causes, from the rights of the Huey Newton­ tion - a 1960s counterculture neocultist with a big Eldridge Cleaver Defense Commiteee and SDS to the name and a thoroughly amoral, moldable public use of college property for meetings to defend a profile. Brown's cultism is indicated in his early Jesuit teacher dismissed for reading a poem which was des­ training, in 1956-60, and represents a key to his psycho­ cribed as "on abnormal sexual relations with God, logical makeup. The training he underwent in a Jesuit Christ, and animals." seminary in California was overtly expressive of the Brown moved on up with a 1970 campaign for (sadistic) military discipline and mind control around Secretary of State, a campaign that not incidentally which the elitist Jesuit intelligence apparatus is built. persuaded his father to drop a possible comeback bid Only Latin was spoken in the Novitiate, and total against Ronald Reagan. Brown's victory came despite silence was maintained for long periods of time. Once a Republican sweep of all other statewide offices a week a form of criticism-self-criticism, known as except the Senate seat won by John Tunney, a son of delectus, was practiced ; novices who broke rules had another famous father and a former roommate of Ted to confess and ask forgiveness on their knees in front Kennedy's at law school. Kennedy sycophant Tunney of the entire community ; once or twice a month they and Brown became close associates, during this would bind themselves with chains for an hour at a period and after. time ; they would also beat themselves on the rear end Brown used his new office exactly as he had his with a rope . earlier one, but on an expanded scale. Immediately on The underlying approach of the Jesuits dominates taking office in January 1971 he began filing high­ everything Brown is, and the Jesuit themes, often publicity law suits for failure to comply with campaign mixed with counterculture, MK-Ultra-type "spiritual­ financing laws, including a public threat to prosecute ism," are quite out in the open. Brown still studies St. 134 candidates. Brown's operation against California Ignatius, the founder of the Jesuits, and the rules he politics escalated in April when he announced a wrote for the Jesuit order, along with Brown's other campaign in alliance with Common Cause and the anti-growth gurus, particularly E.F. ("Small is Beau­ People's Lobby to place a Fair Political Practices ini­ tiful") Schumacher. Early in his term as governor, tiative on the June 1974 ballot. The initiative was Brown told an audience of priests, "If you want to drafted by poverty lawyer Daniel Lowenstein and know what my administration will be like, look at St. became known as Proposition 9 (later declared uncon­ Ignatius's 11th and 12th rules." The rules he referred stitutional) . Lowenstein was later appointed head of to dictate that a Jesuit must seek self-mortification, the Fair Political Practices Commission by Governor practice self-denial, and abhor worldly needs and Brown. The southern California-based Center for the desires. Study of Democratic Institutions, founded by a former Brown left the Jesuits in 1960, finished college at Aspen Institute head and OSJ Commander Robert Berkeley, and went on to Yale Law School. He then Hutchins, was extensively involved in the Proposition served as a law clerk to a family friend and tried to 9 campaign and was a key element in Brown's own make a career of sorts in law , passing the bar only Democratic primary victory in the June 1974 election.

Oecember 5- 11, 1978 EXECUTIVE INTELLIGENCE REVIEW SPECIAL REPORT 27 The campaign for governor ders of the terrorist networks of MK-Ultra and the Peoples Temple cult. Brown's announcement as a candidate for governor In managing his presidential bid through Kantor was a surprise - given that he had zero qualifications and key Kennedy associate Allard Lowenstein, the - and Mayor Alioto was the clear front-runner, Kennedy machine that runs Brown reveals itself. followed by candidates George Moscone (then a state Brown is a stalking horse for Ted Kennedy, a pawn for senator) and Bob Moretti, the powerful speaker of the a bigger pawn, in the planned Cartergate assembly. Moscone dropped out early, Moretti had no destabilization of the United States. Brown's state-wide recognition, and Alioto showed the effect of California is the launching pad for that destabilization continual press harassment on his alleged " mafia con­ - from Jim Jones to Jerry Brown to Ted Kennedy nections." With Watergate and the help of some key stretches one continuous line of control to that pur- figures in the Democratic machine who swung crucial pose. labor support to him, Brown won the primary, and -Cornelia Reynolds following that, the governorship. The record of Brown's governorship will not be dealt with here - his destruction of nuclear energy develop­ ment, Proposition 13 austerity operation, and his Sources======general antigrowth policies are well enough known. We return instead to his Governor's apparatus - Sources for this report included : along with the MK-Ultra crowd, came the network of Peter Chowka, "Jerry Brown for President," Th e poverty and public interest lawyers created straight Ne w Age Journal, JulY-August, 1976. out of Bobby Kennedy's Justice Department, now CoEvolution Quarterly, Issues 11-18, Fall 1976- centralized nationally through the D.C.-based Center Summer 1978. for the Study of Law and Social Policy - which was Department of Army and Central Intelligence founded and is run by former Kennedy associates. Agency Documents concerning MK-Ultra, Bluebird, This "network of people who came through legal and Artichoke, released to the public under the services and public interest law" has been described Freedom of Information Act ; 300 pages. accurately as "the old school tie" of the Brown admin­ Robert Pack, Jerry Brown the Philosopher Prince. istration. Brown's top administrative staff and ad­ New York : Stein and Day, 1978. visors come from the California ACLU, and its off­ Dr. Joel Fort, et aI., Th e Utopia tes. London : shoots, the San Francisco-based Public Advocates Tavistock Institute Press, 1965. Inc., California Rural Legal Assistance, and the Valuable information for this report came from Mexican-American Legal Defense and Educational numerous interviews conducted by the author and Fund. others with persons directly associated with the Grey Davis is one of these. A graduate of Stanford events described. These included interviews with a Law School before serving as a captain in the army in former feHow of the Center for the Study of Demo­ Vietnam, Davis organized for McCarthy in Vietnam cratic Institutions ; an interview with Stewart Brand, and after discharge joined a top Los Angeles law firm. provided by a New York-based journalist ; and inter­ He worked on Tunney's 1970 campaign and then was views with observers of the 1960s events in Berkeley finance director, under Garth, in the Bradley cam­ and San Francisco. paign. Another figure is Mickey Kantor, five years a poverty lawyer representing farm workers in Florida and a close buddy of Tony Kline, Brown's legal affairs secretary and founder of CSLSP-affiliated Public Advocates, Inc. Kantor comes on board in an important post - as campaign manager for Brown's presidential bid of 1976. Kantor ties right back into the Hollywood-liberal networks whose ties to MK-Ultra in both the drug­ running and mass psychosis industry are a major part of this picture. Kantor had managed Senator Cran­ ston's re-election campaign in 1974 and was a member of the law firm of Manatt, Phelps and Rothenberg, a Century City firm whose head, Charles Manatt, has been chairman of the California Democratic Com­ mittee since 1971. This is the firm that Tunney joined when he lost his Senate race in 1976. Finally, and most important, this firm's clients include Eli Lilly, the company whose foundation is one of the major foun-

28 SPECIAL REPORT EXECUTIVE INTELLIGENCE REVIEW December 5-11. 1978 ".RRORISM )

The Jones cult and the Mau Mau model

The 'defectors'group is key to the loom ing terrorist deployment

Th e follo wing informational report was prepared by included. This hysteria secured the British the the U.S. Labor Party Security Section. mandate for launching phase two. 3. Phase two of the deployment: A covert. fake Mau Law enforcement officers and private public Mau gang headed by disguised native whites was interest groups investigating the terrorist deployed as a terrorist force. while a public relations potentialities of the mass suicide in Guyana must cover was developed around a group of Mau Mau make themselves familiar with the essential features "defectors." "Revelations" about the Mau Mau were of the two-sided Mau Mau operation of British prepared by British intelligence and played through intelligence services in Africa. The orchestrated gang the mouths of the controlled "defectors" group. The and countergang deployment of the main Jones group defectors group thus provided the cover required to and the so-called "defectors" group conforms in every aid terrorist operations deployed by the covert. killer essential detail of pedigrees and deployments to the squads for which the "defectors" served as a front gang-countergang operation which the British ran in group. the Kenyan Mau Mau operation. 4. Phase three of the deployment: Fake Mau .Mau The writings of Brigadier Frank Kitson of British gangs deployed by British intelligence perpetrated intelligence provide the law enforcement officer with terror against black villages in the populated areas of all but one crucial fact one needs to know to cope with Mau Mau deployment. This bloody "chaos and con­ the dangers posed by the so-called "Jones defectors" fusion" operation impelled the villagers to distance group. Kitson merely omits to mention that the themselves in terror from the real Mau Mau. The Mau original Mau Mau group was created by British Mau forces were thus herded into a concentration in intelligence ; the rest of the tale as given by Kitson is which a final air-assisted search-and-seal paramili­ close to the truth on essentials. tary operation wiped out the organization. We outline the basic features of the British Mau Mau 5. Model for the operation-Malaya : The "wet-run" operation first. Then. we indicate the crucial points of model for the Kenya Mau Mau operation was made at agreement defined by superimposing the Jones the close of World War II in Malaya. follower-defector deployment pattern on the Mau Mau During the war. the British intelligence under model. China-Burma-India Theater coordination of "that bastard" Lord Mountbatten. and such subalterns as The Mau Mau operation Enoch Powell. had created in the Malaysia area a The basic elements of the British intelligence reserve guerilla force headed by the Chao Chou services' Mau Mau gang-countergang operation in opium-running networks of the "golden triangle." The Kenya are as follows : British never fully equipped or armed this ethnic 1. Creation of the gang : The original Mau Mau cult. Chinese force during the military operations against under the titular leadership of London-trained. the forces of Japan. However. at the conclusion of the "radical" Kenyan nationalist Jomo Kenyatta. was war. the ethnic Chinese guerrilla reserves were created by the British intelligence service as an supplied with arms and other equipment in adequate Anglican Jesuit operation coordinated by the British supply for a full-scale. protracted guerrilla operation. Psychological Warfare Division at the Tavistock Guerrilla assaults on plantations (especially) were Institute (Sussex University). used as a pretext for setting the counteroperation into 2. Phase one of the deployment: The overall operation motion. It was in this setting that "Malaysia" was set into motion through a wave of Mau Mau raids Thompson and others developed the techniques which against (principally) farms owned by European Thompson and others introduced to CIA operations in settlers. with some killing of black Kenyans to spice Vietnam at the beginning of the 1960s - the techniques up the horror effects. which contributed in the greatest degree to developing This produced hysterical polarization among the in-depth support for the National Liberation Front black and white populations of Kenya. with both forces in the rural regions of South Vietnam. white-versus-black and black-versus-black features The British obsessively refuse to comprehend the

December5-11.1978 EXECUTIVE INTELLIGENCE REVIEW TERRORISM 29 qualitative distinction between such models as "war principle is illustrated - as in those elections during games" or "controlled experiments" and actual wars which most of the population contests preferences for involving in-depth warfare considerations. However, two wretched candidates, both controlled by the same the lessons of Mountbatten's bloody controlled background interests. People generally are suckers experiment in Malaysia did provide a reference point for whatever is put front stage as the conflict of a for a successful gang-countergang operation in rigged drama ; audiences have great difficulty in Kenya, precisely because Kenya represented a rising to the mature levels of judgment in which they controlled experiment - where Vietnam did not. focus their attention on backstage operations, in which 6. Policy motives for Mau Mau: Jomo Kenyatta, prior they have the maturity to recognize that it is the to the Mau Mau operation, was a titular leading audience which is the real target of the operation. figure among Kenyans oriented toward national independence. The British were prepared to give Rabbi "Mau Mau" Davis Kenya nominal independence as, predominantly, an Understanding the Kenyan Mau Mau model enables agricultural goods and raw materials exporter, within the investigator to understand the case of Rabbi the monetary order of the British Commonwealth. The Maurice ("Mau Mau") Davis, formerly of British were fearful that the newly liberated colonies Indianapolis, currently of White Plains. It was Davis, would opt for either the American Revolution or the in Indianapolis, who gave Jones his first temple, a Soviet case as a model - a model of dedication to disused synagogue sold to Jones under the most urban-centered general progress in technolog­ informal, "softest" terms - a "pay me whenever you ical development of agriculture, industry, and can" arrangement. The same Davis has been infrastructure. The British needed to draw potential prominently associated with kidnapper Ted Patrick in national leaders into an operation in which those so-called "deprogramming" of youth recruited to both leaders and associated layers of the native cults and non-cult organizations. populations would be sufficiently tamed to submit to Although Davis's organization operates under the the British version of "national independence." public-relations cover of rescuing persons from In general, the combined Mau Mau operation was to "brainwashing," two known sets of facts concerning subject Kenya to a "bloody example" of terror for this the kidnapping operations reveal the true character of desired effect. the "deprogramming" cult headed by Davis and The Kissinger policy for southern Africa was and is others. First, although some of the kidnapped persons based on the same British-designed Mau Mau model of were in fact "rescued" from behavioral modification white-versus-black plus black-versus-black horror groups, this is essentially a convenient, diversionary. shows, with white mercenaries providing the crucial public relations cover for the actual character and catalytic element of mass butcheries needed to bring broader purpose of the "deprogramming" operation. all the other conditioned elements to a maximum Second, the methods used by Ted Patrick and other degree of frenzy. "depr6grammers" are based on the most brutal sorts of "back room" brainwashing techniques. An important consideration A study of the pedigrees of the Jones "defectors" The Mau Mau operation, like many other standard group, and the background to the organizational cover British intelligence covert operations techniques. of the group of "ex-Mau Maus" publicized in the wake relied on the foolishness of the average citizen, his or of the Jonestown suicide-murder orgy, warns us that her tendency to "pick sides," either as a spectator or any terrorist deployments linked to the Guyana participant, in any ongoing fight he or she witnesses. bloodbath are coordinated by forces separated only by On the basis of this principle, the following sort of "cutoffs" from the sponsorship of the "defectors operation is standard. group." Any person given the crucial facts concerning Operation objective: Assassinate a tertiary quality the background and current propaganda-line of the of target who is known to be meeting a contact in a "defectors group," provided that person knows the barroom at a given time. Mau Mau model, recognizes immediately that this Me thod: Deploy two separate teams to the location. conforms on all crucial test points of intelligence Team "A" to start a brawl. Team "B" to hit the target evaluation to the "NAG " front-group aspect of a under the cover of the diversionary brawl. standard British-intelligence gang-countergang Procedure : Two operatives of Team "A" start an terrorist operation. It is the same Mau Mau model argument in the barroom. preferably involving which the British intelligence services have been unwitting third or third and fourth parties. If the perfecting for years in the Ulster horror show. issues of the rigged conflict are sufficiently aired to This conforms to the fact that California kookery the others in the barroom. those bystanders can be has been developed chiefly through various British psychologically involved on one side or another before intelligence deployments. and that the Ukia-cults, of the first blow is struck. In the melee. the victim is which the Jones case is an example, were developed killed. under the auspices of the "Golden Dawn" operation of That is a crude, classic, and obvious case, but the British intelligence, the same operation in which Allen

30 TERRORISM EXECUTIVE INTELLIGENCE REVIEW December 5 -11. 1978 Dulles's "MK-Ultra" and Rand corporation to the surface between Summer 1977 and the recent involvements were key. Guyana bloodbath. Stoen is now key to the "defectors The connection between Lilly Endowment-funded group" and the central figure in the chain of and related operations in Indianapolis to California circumstances leading directly into the murder of kookery is second in significance only to the kook­ Congressman Ryan and the mass bloodbath. This does operations played into California and other locations not necessarily imply that Stoen is fully witting of the via nasties embedded in the University of Chicago. In implications of his role. but merely that he is at least a New York State, Edgar Bronfman's Westchester controlled element in the threatened terrorist phase of County, plus Rockland State Hospital. is one of the the "Mau Mau" model under consideration. nastiest centers of cultism and other kookery - Key in the planning level of any terrorist activities including the "Son of Sam" killings. linked to the Guyana horror-show is Brian Jenkins of If one also knows the basic rules for untangling the Rand Corporation. Jenkins is cooperating at high Zionist networks, and knows the key role Israeli executive levels with British intelligence in planning intelligence played in the Timothy Leary operations terrorist operations, and has taken a key role in side of the "MK-Ultra" proj ect, the general pattern of planning the cult phase of terrorism. This should not British-Zionist-Quaker networks involved in the be surprising to anyone who is informed of the development of the Jones and other kook cults is background of Rand or its various involvements in understood. Rabbi "Mau Mau" Davis's overlay fits creating Jones and other cults. Rand was integral, all crucial points of the "Golden Dawn" deployment together with such entities as Israeli intelligence and pattern. the Office of Naval Intelligence's British-controlled The case of Timothy Stoen gives another. useful National Training Laboratories, in furthering the overlay. Stoen, reputedly a former CIA agent. was British "MK-Ultra" project run under Allen Dulles's crucial to Jones's success during the early phases of CIA cover. Undercover and other most-reliable development of the Peoples Temple. and was involved sources have given us a hard dossier on a very, very in every phase of the "nasties" which came abruptly "dirty" Brian Jenkins.

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Oecember 5- 11. 1978 EXECUTIVE INTELLIGENCE REVIEW TERRORISM 31 ( .eONOMles

Behind the calls fo r tight money

Will the u.s. be Britain's pawn against the EM S?

Behind the obsessive talk about the need for tight Any long-term stability of the U.S. dollar and the money in the u.s. lies a critical fight over international economy indeed depends on doing international credit policies and control of the $600 something about the unstable pool of hot money known billion-plus in Eurodollar liquidity. In an attempt to as the Eurodollar market. The Japanese strategy of obstruct the European Monetary System and head off rechanneling Japan's sizable dollar reserves into the complementary Japanese plan for recycling natural resource development and other project loans Eurodollar liquidity into long-term productive loans, at one-half the prevailing Eurodollar rates is precisely the British and their allies are circulating scare the right approach : put the dollars to use in long-term, stories about "new Herstatts" and plotting ways to profit-generating investments. The antidollar, anti­ bring the "volatile" Eurodollar market under EMS approach consists in an across-the-board International Monetary Fund control. Parallel with crackdown on credit creation in the U.S. and a forced this effort, British and allied sources are reflow of dollars, on the theory that the only solution to simultaneously demanding a drastic shrinkage in the the dollar's chronic weakness is to eliminate the dollar U.S. credit base on the spurious grounds that the from the international arena and shut down whole dollar will be stabilized through the ensuing capital sections of the U.S. economy as well. reflow. The only climate in which an IMF Eurodollar Apparently one part of this operation was the market restructuring could be imposed would be a proposal by the new Japanese Prime Minister, new Eurodollar panic. Hence, on Nov. 28 Le Monde Masayoshi Ohira, at a press conference Nov. 28, that predicted a new "Herstatt crisis" - referring to the the mass of foreign-held dollars in the Euromarkets be 1974 failure of a West German bank engaged in cleaned up by replacing them with the International currency speculation that almost turned into a classic Monetary Fund's Special Drawing Rights. Ironically, banking panic. This followed the Financial Tim es 's the target of Ohira' s proposal is the so-called warning the previous week of an "uncanny" consolidation plan now being pioneered by Japan's resemblance between the present Eurodollar situation central bank to soak up much of the over $600 billion in and the 1974 crisis. The alternative to a new Herstatt is footloose Eurodollar deposits and direct the funds into supposed to be the imposition of reserve requirements low-cost trade and investment credits for mammoth on U.S. banks' Euromarket operations; this controlled industrialization projects - a plan which plainly runs version of the collapse of their business was mooted by directly counter to the "free market" lending U.S. Federal Reserve Chairman G. William Miller activities of the City of London, its New York last spring and was elaborated by Robert Triffin in his satellites, and its policy enforcers at the IMF. CFR speech. Yale University economist Robert Triffin aired his perennial plan for "stabilizing" the Eurodollar U. S. credit clampdown market under IMF auspices in a speech before the Triffin. Miller. and Lazard Freres's Felix Rohatyn ­ New York Council on Foreign Relations Nov. 14 - the who bluntly called for U.S. credit controls in the Nov. CFR's inaugural John J. McCloy lecture. Triffin's 28 Ne w York Tim es - cannot snap their fingers and plan for phasing out the dollar's role as the world's politically implement the whole IMF antidollar leading reserve currency and asserting IMF control machinery. What they can do is clamp down on the and "conditionality" over national credit systems and availability of credit in the U.S. and starve credit­ especially off-shore markets is, in fact, the model for hungry U.S. business to the breaking point. This the anti-EMF, anti-dollar schemes that have surfaced strategy was formulated in the recent American recently. Express Bank (Amex) report. which prescribed a

32 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW December 5 - 11. 1978 ------)

drastic shrinkage of the U.S. credit base to be its guns" and move to squeeze the monetary base - as ameliorated by an inflow of foreign funds. Speaking in former Fed Chairman Arthur Burns did back in 1974 Zurich Nov. 29 Hans Mast of Credit Suisse predicted (see "How to collapse the U.S. economy") . Donald an imminent capital reflow to the U.S. based on still Wooley. chief economist of Bankers Trust. said in an widening interest rate differentials and the successful interview this week that the Fed governors know their completion of the new monetary arrangements - every move is being scrutinized by the foreign Mast like Triffin hopes to pervert the EMS into an exchange markets. "They can't back off now, they austerity-based currency stabilization system. feel, or they'll undo all the good they've done so far." In the U.S. itself. prevailing thinking has converged As for any residual opposition to tight money coming on the position held by the Friedmanite cultists at the from Carter's close "political advisors," Wooley Wa ll Street Journal. Economists are prescribing an believes that the tumult in the financial markets in the abrupt clampdown on the availability of credit - on week leading up to Nov. 1 gave the Administration a the creation of banking reserves - having realized good scare, and Carter is now listening to his that rising interest rates have in no way deterred bank "economic advisors." lending. and have in fact only fueled an inflationary The key issue is what the Fed is going to do with bubble in the economy. " ...if the need for money is respect to the availability of credit. "Availability is there. corporate treasurers will pay the price." the still there," according to Wooley. "But I think we may Manufacturers Hanover Trust Financial Digest be about to enter a period where availability may be observed last week. impinged." On Nov. 29 the Wa ll Street Journal editors sounded Apart from the Fed's upcoming actions on monetary their own familiar litany. demanding that the Fed reserves and interest rates - this past week the categorically establish control over "the dollar money Federal funds rate inched up again to 9�8 percent - supply" : "A real defense of the dollar would attack there are a number of other factors in the balance. The the root problem of its decline. which is that too many six-month certificates that savings banks began dollars have been created. Unless the Fed slows the issuing last spring to prevent disintermediation have creation of dollars. the rest of the (dollar support - begun to mature and must be rolled over - at 200 ed.) plan is temporizing at best and cosmetics at basis points above the original interest rates ! Thus, it worst." is questionable whether the banks, which are already The Journal was apoplectic over the fate of the losing money on these high-interest-rate certificates. higher reserve requirements on large certificates of will continue to issue them. On this hinges the deposit announced by the Fed and the Administration continued availability of mortgage money and the on Nov. 1 as part of the dollar defense package. which housing market, which has held to a two million starts was supposed to immobilize some $3 billion in banking per annum rate this year. Also. smaller regional reserves. and hence was expected to contribute to a banks are already fully loaned up and have been decline in the monetary base. The Journal editors and selling loan participations to money center banks to other commentators interpreted the $700 million meet heavy loan demand. As a whole, the banking increase in the monetary base. which consists of system is liquidating its holdings of government banking reserves and currency. in the statement week securities to accommodate loan demand. Under these which ended Nov. 22 as a sign that the Fed was moving conditions, a squeeze on banking reserves, credit to offset the credit tightening measure. controls, or other pseudosolutions to stabilize the In fact. there is considerable concern among tight dollar will simply guarantee a U.S. recession. money advocates over whether the Fed will "stick to - Lydia Diftler

December 5- 11. 1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 33 Salomon Bros. analyst recommends limited credit availabil ity The Apollo of the

Couched in Delphic predictions of In an interview with Executive Intelligence Review on the U. S. banking another major monetary crisis that and credit picture this week, Salomon Brothers bank analyst Warren could "bring down the existing Ma rcus recommended a program of recessionary credit cut-off as a system" Yale economist Robert remedy for inflation and dollarinsta bility. Triffin's John J. McCloy lecture Nov. 14 made three major Q: We ha ve a report that some people would like to use the Citibank allegations : (1) the dollar's role as scandal around Da vid Edwards to open up banks ' foreign lending port­ a reserve currency should be en­ folios for in vestiga tion. Ha ve you heard about this ? Also, that Citibank ded ; (2) control over liquidity would like to distra ct attention from their foreign portfolios. creation should be taken over by an A: No, but I wouldn't be terribly surprised. I often wonder whether banks IMF with greatly expanded sur­ even fully understand the logistics of foreign lending. I doubt if anyone veillance and enforcement powers ; really knows what's actually going on here. The data basis is pretty poor. and (3) IMF controls should be It's an issue over which people get pretty emotional. ...Our chief extended to "offshore operations" problem right now is that the world is a borrower's market - flush with in particular. liquidity. Triffin's drill session with the Council on Foreign Relations Q: Ho w are we going to deal with this ? which is to appear as the lead item A: We have the whole anti-inflation program. And I think they're serious in that organization's December about it. ...Over the past two or three years, there has been a decline in Foreign Affa irs organ, led up to a credit quality. Lenders have been under pressure to put money to work slanderous commentary on the rather than look for money. The situation is not alarming. EMS, based on the "kill by coop­ tion" approach associated with Q: Wh en you talk about the anti-infla tion program, do you mean the in­ Britain's Brian Jenkins. Triffin terest rates ? misrepresented the EMS as an up­ A: We're talking about the whole package. dated version of his own rejected schemes for an antidollar, austerity-based European regional Q: MiJIer seems to ha ve taken a very soft position on interest rates, after currency bloc . everybody seemed to be concentra ting on that after the program was Three days later the Ne w York announced. Is that because he's more concerned with other aspects of the Tim es ' Leonard Silk retailed program ? Triffin's CFR briefing in the A: Well, Miller is also trying to deal with domestic political realities. context of a high-profile We've had moves in Congress to eclipse the independence of the promotional pitch for Triffin's Fed ....There are always intimations that the Fed was too independent. recognition as the "successful Burns knew how to gain the confidence of Congress, which is always Cassandra. ' , trying to promote expansion while the Fed they claim is always trying too Triffin is playing the same role mute it ....I'm thinking back particularly to '74, when a number of today as he did in the early 1960s, Congressmen thought the Fed was the major political problem, and when he launched a push for the blamed them for everything. reorganization of the teetering international monetary order Q: To be specific, wh at technicalities are needed righ t now to ensure the under the auspices of the IMF. Administra tion 's anti-infla tion program besides inter.estrate increases? Having established his soothsayer A: A more contained, more reduced rate of monetary expansion. Also, credentials through the publication one of the planks of the program is to increase reserve requirements, of Gold and the Dollar Crisis in which became effective in the middle of the month ....Ev erybody 1960, Triffin worked with elements agrees that if the program is technically unable to do the job, all it does is of the Kennedy Administration - buy time. Then you have to deal with the basic problem - in­ including the scores of actual flation ....Ev erything revolves around inflation ....If we had a Her­ British civil servants brought into statt crisis it would strengthen the dollar. Countries do not disappear. the White House and U.S. Treasury Despite the U.S. dollar weakness, there have been massive acquisitions to effect world monetary in the U.S. The U.S. is still the last bastion of capitalism, a huge, power "reform" through replacing the economic force. If we get our act together on inflation, then indeed we will U.S. dollar with the IMF's Special get capital inflows. Drawing Right liquidity.

34 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW December 5 -11, 1978 Council on Foreign Relations

Professor Triffin's curriculum in the postwar sterling bailout as The political intelligence vitae explains his present ad­ director of the International character of Triffin's professional vocacy of IMF and Bank of Monetary Fund's Exchange skills is further exemplified by one England policies today. Control Division, and a year later notabfe expioit amon g his post-1951 Since his journey to Harvard as the IMF's chief technical academic pursuits. Professor Trif­ from Belgium in 1939. to his 1951 representative in Europe. Like the fin, it so happens, collaborated placement as an economics notorious Milton Friedman, Triffin with the notorious Henry Bloch, professor at the center of Yale was from 1949 through 1959 a currently S.G. Warburg chief, in University's cabal of sterling "special advisor" on trade and the assassination of Patrice Lum­ lovers,· Triffin has been on the financial policy to the European umba in the Congo - the two being inside of every major British in­ Cooperation Agency, and the U.S. instrumental in a maneuver to ternational economic warfare administrator of the Marshall Plan freeze Zaire's gold reserves - a operation in the postwar period. - the scheme Henry Kissinger's key ingredient of the overall desta­ Triffin cut his teeth, as did Henry mentor William Yandell Elliott and bilization - in the period before Wallich, from 1942 to 1946 as Latin other leading Anglophiles ran to and after the assassination American section chief for the U.S. isolate the U.S. from Europe operation. Federal Reserve Board of economically and humble the - Susan Cohen Governors. During the critical 1946 continent vis-a-vis Britain -48 period Triffin was instrumental politically.

What Triffin is saying

The following are key points from Robert increase in IMF lending, and even the $133 billion Triffin's Nov. 14 speech to the Ne w York Council rise in Central Banks' foreign exchange on Foreign Relations, "Gold and the Dollar investments. The abdication of official control Crisis : Yesterday and Tomorro w": over the explosion of international financing could hardly be more complete. -The international paper-dollar standard has indeed become even more distasteful and -What conclusions can I draw today from these unbearable to foreign dollar accumulators than developments? They certainly call, first of all, the pre-1971 gold-dollar standard. The flooding of for a further rounding-up of my 1959 proposals. world reserves by dollar and Eurodollar The control of international liquidity must en­ overflows doubled them over the years 1969-1972, compass not only all three components of the and has doubled them again over the years 1973- official world reserves (gold, foreign exchange, 1977. and SDR or other reserve deposits in the IlVIF), but also this mushrooming of commercial bank -Our own banks - again excluding their lending. branches abroad - increased their foreign claims from $21 billion in 1972 to $87 billion in -It is incredible, indeed, that the continuous mid-1978, at an average rate of $14 billion a year international consultations and repeated summit over the years 1973-1977, and a peak of $21 billion meetings of governments and their financial in 1976, compared to an average of $2.5 billion in advisors have hardly breathed a word so far 1970-1972, and well below $1 billion in the 1960s. concerning the need to negotiate among the For the world as a whole, the foreign claims of major financial centers some sensible commercial banks reported by the Bank for framework for so-called "offshore banking" International Settlements rose from about $200 operations undoubtedly prompted in part by a billion in 1972 to $700 billion in mid-1978. This desire to escape regulations and taxation by the $500 billion increase in commercial banks' home authorities of those banks' head offices. foreign loans dwarfed by far the $14 billion

\..

Oecember S-11,1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 35 How to collapse the u.s. economy

British follow 1974 Herstatt scenario in their bid for a crash of '79

Contrary to all of Milton Friedman's horse manure and Henry Kaufman of Salomon Brothers. are now about the "inevitable" recession ahead in the Amer­ predicting is that the Federal Reserve will put the ican economy, the u.s. is pretty tough to upset. Con­ crunch on the availability of funds to the banking sider the present situation: after 22 months of the system. and simply shut down credit availability .. Carter Administration and a year of Fed Chairman G. One hard-pressed treasurer of a big New York bank William Miller, the economy is still standing. Ameri­ pointed out in a discussion that during 1974 - when the can business has survived a prime rate at a near-re­ first big waves of mass layoffs started - Fed cord 11.5 percent, a detestable foreign trade policy Chairman Arthur Burns wrote a letter to the banks that has left us with the first manufactures trade demanding that they shut off credit. They did. and the deficit in 50 years, and a rampage from the Kennedy economy took a nose-dive. If Miller does something side of the regulatory agencies. like that. the banker said. it will be all over. Of course. these aversive conditions have taken Arthur Burns's letter. dated October 1974. was the their toll. Business is terrified of inflation. and contin­ coup de grace to the American economy. Old Arthur ues to borrow even at exorbitant rates to stockpile Burns. prize scion of the Chicago School's evil founder inventories that will become more expensive in a few Wesley Mitchell. pro-British to the pipestem. provided months. Farm prices. through the Administration's an object lesson in how you can collapse the American imbecilic "set-aside" program. have pushed the economy. Consumer Price Index up to a 10 percent annual rate High oil prices didn't collapse the U.S. economy dur- of increase. while meat prices are rising at a 20 percent annual rate. But the economy refuses to collapse. The bank Le Monde: Euromarkets are newsletters which have been demanding a recession are forthrightly upset about this. The City of London Th e weekly Economics section of Le Monde. No v. must feel like the impatient heir who has poisoned. 28. reported that the condition of the international shot. and stabbed a 90-year-old rich aunt who still money markets was prim ed for a new panic similar refuses to die. to that triggered by the Hersta tt bank collapse of Forget all the fairy-tales about the "business cycle." 1974. Excerpts from the article. titled "The shadow The economy is not "overheating" because there is of the Hersta tt bank •.. follo w: too much economic activity. or the Federal Reserve is ... The . latest statistics published by the World printing too much money. There is inflation because Bank take note of the formidable increase in bor­ British-designed foreign trade policies have shut off rowing on the Euromarkets during the course of the world market to American heavy industry. which. this year. The total of borrowing for the first six correspondingly. has failed to invest in more months of 1978 has reached $51 billion. whereas the productive new facilities, and because British dope figure for 1977 as a whole was $69 billion. and for runners take $50 billion a year. by official estimates, 1976. $63 billion .... out of the U.S. economy. Inflation does not produce a How can this new and considerable increase of recession. Left to its own devices. the inflation-ridden foreign indebtedness be explained? It is first a con­ U.S. would eventually break through the political sequence of the collapse of the dollar. We could cite barriers designed by her British "allies" and cure the other examples of this phenomenon from recent symptoms. monetary history: a currency that is weakening is Extraordinary measures would be needed to bring used more and more. because economic agents the U.S. economy down. That is precisely what the seek to increase their commitments denominated frustrated outlets for British policy are now in a currency which is losing more of its value. demanding. Today's Wa ll Street Journal lead editorial When it is the dollar - whose position is already is a case in point. "Unless the Fed slows the creation dominating - that is in question. this new illustra­ of dollars." says the Jo urnal. the Administration plan tion of the principle of a bad currency taking prece­ to defend the dollar in cooperation with our European dence over a good currency can take the form of a and Japanese allies "is temporizing at best and veritable tidal wave. The banks, American or not. cosmetics at worst." What pro-British analysts on operating on the international market. have Wall Street. such as Donald Wooley of Bankers Trust

36 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW Oecember S-11, 1978 ing the big 1974-1975 downturn. A British special International Settlements started withdrawing its operation - the collapse of the Herstatt Bank in West deposits from the Eurodollar market. as reported Germany - did. The City of London. the polluted gleefully in early October by the London Economist. home of the pool of footloose dollars known as the By a recently published estimate in the French "Eurodollar market." knows that the deciding margin newspaper Le Monde - which is running predictions of available credit for the U.S. economy is the $400 or of a Herstatt repetition - total liquidity in the so billion in international dollars. The collapse of Eurodollar market shrank by an incredible 30 percent Herstatt in July 1974. a British intelligence inside job. within the space of weeks. started a panic which brought down a whole string of Back home in the United States. high inflation rates. secondary banks. while the financial press predicted much like the present ones. forced an extraordinarily general catastrophe. Three Swiss banks went down in high rate of borrowing. The quadrupling of oil prices a September. Michele Sindona's banking group in the year before. a virtual doubling of major commodity U.S. and Italy. including Franklin National Bank of prices. and double-digit inflation had put the economy New York. went down at the same time. victim of a through the wringer. Herstatt and its consequences British inside job resulting in crushing losses on the provoked .a liquidity squeeze on the international foreign exchange markets. markets. Interest rates were at record levels. Still the Banks pulled their funds out of the Eurodollar economy continued to function. market pool. The British-controlled Bank for Burns turns off credit At that point. Arthur Burns simply ordered the banks to shut off lending. They obeyed. At the same time ripe for a new IHerstattl they provided funds to London. as in the case of adapted their own credit policy to a sharply in­ Citibank's bailout for the failing British Bank of creased demand for credit in dollars. Commerce during October 1974. to prevent London A second feature characterizing this evolution from going under. The shutoff of American credit and has been that the greatest part of the loans have the rescue of London sent the U.S. economy into an been contracted from banks, for periods which immediate nose-dive. causing the fastest onset of sometimes reach seven to ten years (with review­ depression in 20th century American economic able interest rates). As for the long-term bonds in history. The shutoff of credit was much. much worse Eurocurrencies. the bank syndicates responsible than during 1929-1933. for selling them to the public have often ended up Now the London Financial Times. its echo­ saddled with them . But. as in 1974, under circum­ chambers at Le Mon de. and various other stances similar in many respects (to today) . the contaminated outlets are talking about a replay of the short term interest rates are continuing to go up on 1974 events. Luckily for the U.S .. the West Germans the dollar market (and therefore on the Eurodollar and Japanese are too well in command of the world market) ; they are now higher than long-term in­ markets to permit any similar disaster from taking terest rates. which is always the sign of an un­ place. The situation. however. is still precarious. The healthy situation. Wa ll Street Journal and its co-conspirators. who want It could be that. because of this "transformation" the Federal Reserve to do now what Arthur Burns did (of very short-term deposits into longer-term back in 1974. are trying to replay the script of loans) to which it has continued to adhere. the inter­ America's last collapse. national banking system finds itself today in a more Miller is trying his best to accommodate them. but precarious position than even the summer of 1974 he has to follow certain guidelines from the White when - in an event which is again being talked House. which is not happy about economic collapse. about - the bankruptcy of a small Cologne estab­ Not much apart from the electoral ambitions of lishment. the Herstatt Bank. set off a movement of now stand between the economy and panic of such scope that it resulted in a withdrawal, disaster. Either the U.S. will join the European Mone­ in several weeks time. of nearly 30 percent of Euro­ tary Fund and pull itself out of the muck. or Miller will dollar deposits. drop the blade. - David Goldman

December 5- 11. 1978 EXECUTIVE INTELLIGENCE REVIEW ECONOMICS 37 Are U.S. bankers com mUting hara-kiri?

It might be tasteless to make the obvious comment when the United States will choose its course with about the recent behavior of American bankers, but respect to the new monetary system - the banks are the reactions of leading U.S. financiers to Japan's being told by the British that they have been in the program to stabilize the Eurodollar market belong to London market so long and so completely that they the realm of last week's shock headlines on mass cannot pull out. If the London market goes, the City of suicide. Interviews with senior officials of New York's London is threatening, the U.S. banks will go with it. Citibank, San Francisco's Bank of America, and First -David Goldman National Bank of Chicago, indicate that these finan­ ciers are not responding clear headedly, but to a combination of British psychological warfare and eitibank: 'we want a bigger spread' blackmail, designed to keep the United States out of the European Monetary System. A high -ranking Citibankoff icial involved in the bank's These bankers object that the Japanese program Asian operations had the following to say about the (soon to be joined by the Europeans), with its Tokyo Capital Market: provision for development loans at roughly half the rates prevailing on the Eurodollar market, will wipe Q: What's your reaction to thenew international loans out their competitiveness. Even though the Japanese the Japanese banks are making in dollars at con­ have offered Americans places in the banking con­ cessionary interest ra tes ? sortia making the new loans, and with them the op­ A: The Japanese are establishing their credibility as portunity to use some of the $30 billion held by the major lenders in the international market. The Bank Japanese central bank at interest rates equal to of Japan is laying off its excess liquidity to the com­ Japanese internalrates of 6 to 7 percent, the American mercial banks, which are funneling it back into banks are terrified that their decade-long spree in the proj ect loans. This is part of an overall national Eurodollar market will come to an end. strategy. The Japanese economy needs raw material Considering that the Japanese plan could bring resources. The concessionary loans to Third World down the entire level of interest in the dollar sector, countries make them captive to Japan, Inc. save the American economy, and expand inter­ national trade, the bankers' attitude is perverse. But Could this Japanese strategy affect the nature of the there is, of course, a reason for every perversion. The Eurodollar market as a wh ole ? American banks have been so completely integrated A: Unfortunately, the low interest rate project loans into the London-centered Eurodollar market, the $700 that the Japanese are making have been depressing billion whirlpool of short-term money, that the rates throughout the market and are hurting our prospect of a healthy reorganization of this mess spreads. Japan's current account surplus is small creates a crisis at New York headquarters. compared with the market place as a whole, Citibank's Asian specialists notedthatthebankmakes however-so even if they pull all that money out, they its profits in international lending on the difference be­ can't drive rates down too far. tween the cost of the money it borrows in London and the interest rate it can charge on the money it lends. Q: Wo uld this really be so bad? Wouldn 't the U.S. No matter that the upward spiral of interest rates - banks get in on loans wh ich, even if they carried low which has already brought the prime rate up to a near­ interest rates, would be more profitable in the long­ record 11.5 percent - is squeezing this "margin" to run thanstandard Eurodollar fl uff? death. Citibank will cling to it for dear life. Citibank A: We are not changing our pricing strategy in the says that the rest of the New York banks will go along bank. Our strategy is to seek out the biggest spreads. with them ; First Chicago says that it will follow New Some European banks are joining syndications led by York ; and Bank of America's Tokyo chief is attackhlg the Japanese, and maybe some small U.S. regional the Japanese in print. Some of the more forward­ banks out in the Midwest. But no New York bank looking officers at these institutions are privately would touch such loans-the spreads are too narrow. enthusiastic about the Japanese initiative, e.g. Third We have different capital requirements than the World specialists at Citibank's planning division. But Japanese banks. If we can't get a reasonable rate of the management of these institutions says that it return on our investment, we don't invest. Besides, wants to march right off the cliff. Japanese commercial banks are getting the Bank of One it becomes clear that the British are finished as a Japan's excess liquidity at very low rates. American force on the financial markets, this idiocy will change. banks have different hurtle rates. We have to go to In the meantime - during the critical weeks ahead London for funds, where the cost is very high.

38 ECONOMICS EXECUTIVE INTELLIGENCE REVIEW December 5-11, 1978 INTS.NATIONAI )

Ohira victory a setback to 'Bremen East'

Already, business leaders press Prime Minister to continue Fukuda's policies

Masayoshi Ohira, whom Henry Kissinger has indication of things to come. Ohira stated that he too, described as his favorite Japanese politician, pulled like Fukuda, is committed to "cleaning up" the 500- off a stunning coup d'etat in Tokyo this week, 600 billion excess dollars around the world, but he hopes defeating Prime Minister Takeo Fukuda in the first this will be accomplished through the City of London round of elections for the presidency of the ruling plan to increase the use of the International Monetary Liberal Democratic Party (LDP). Fund's "Special Drawing Rights" ! Fukuda has announced that he will not contest Ohira While the U.S. State Department yesterday issued a in the election runoff, and he is expected to resign the typically bland statement on Ohira's victory, which premiership later this week. At that time Ohira will be said President Carter expects the change of leader­ formally named LDP President and thus the new ship in Japan to have no impact on the "friendly Japanese prime minister. relations between our two countries," the British have The victory of Ohira, who is currently the Secretary­ openly expressed their pleasure that one of their allies General of the ruling party, was a complete shock to will assume the top position in Japan. The Financial Fukuda personally, as well as to virtually every Tim es of London, closely associated with the political ,pundit in Japan. The country's major Rothschild-led British Round Table, commented in an newspapers as late as last week were unanimous in editorial yesterday that Ohira will "be less effective predicting a Fukuda victory, and widespread charges than Mr. Fukuda at selling the Japanese line to his have surfaced that Ohira's late surge to victory was American and European colleagues." fueled by waves of "dirty money" vote-buying. The paper noted that whereas "Fukuda is confident of his intellectual ability to convince others that his Tokyo summit plans point of view is right," Ohira "is likely to be less Ohira's victory marks a huge setback for the poli­ forceful." The editorial concluded that "Fukuda tical and business leaders of West Germany and prided himself as an innovator as far as Japan's Japan, who have worked together for the establish­ relations with the outside world were concerned," ment of a new international monetary system. Fukuda while Ohira "is thought to be in much less of a hurry had been playing a key role in guiding Japan along than Fukuda." this course, and through his relationship with West German Chancellor Helmut Schmidt the two nations " Consensus system" have been coordinating plans for the Tokyo Summit of Despite the British optimism, however, Ohira will industrial democracies, scheduled for June of next not be free to alter Japanese policies on his own. year. Both Fukuda and Schmidt hoped to use the Rather, because of the unique political process in Tokyo Summit to expand the scope of the new Japan known as the "consensus system," Ohira will European Monetary System into an international be forced to take into account the pressures and effort to "clean up" the speculative Eurodollar demands of other political and business leaders. The market and other sources of instability .in the world single most important thing that will determine the economy, and revive high economic growth through policies of Japan under Ohira will be whether the the industrial development of the Third World coun­ faction of industrialist leaders that backed Fukuda's tries. foreign and economic policies - especially Nippon When he assumes office Ohira is sure to make subtle Steel, the Mitsubishi zaibatsu, the dirigist banks like but determined efforts to shift Japan away from the the Industrial Bank of Japan, and the "pro-German" course outlined by Fukuda. Ohira has long been a wing of Japan's powerful bureaucracy - "capture" protege of Japan's leading pro-British monetarist the new prime minister by publicly elaborating on grouping, the Shibusawa family, and maintains close Fukuda's policies and demanding that Ohira adhere to ties to the "Jewish Lobby" of the United States and them. Great Britain. Experienced observers of Japanese politics have In an interview with the West German daily Die expressed the fear that the industrialist leaders, Welt yesterday, the Prime Minister-elect gave a clear known in Japan as the "Zaikai," will increase their

December 5- 11, 1978 EXECUTIVE INTELLIGENCE REVIEW INTERNATIONAL 39 losses by retreating into the "byzantine" world of and dealing that has come to dominate Japanese Japanese backroom maneuvering, to work out elections. "compromises" and "deals" with Ohira. Fukuda rarely emphasized his leadership role in Two of Japan's most powerful Zaikai, Nippon Steel world affairs as a reason for his reelection, and chief Shigeo Nagano and big-business federation presented himself to the LDP voters as an extremely (Keidanren) leader Toshio Doko, have apparently skilled bureaucrat who deserved to be prime minister begun a pressure drive on Ohira. Nagano yesterday based on his "competence." Thus, as is often the case called for outgoing premier Fukuda to be named the with elections in western countries, the rank-and-file new Finance Minister with special responsibility for members of the LDP saw little difference between coordinating the Tokyo Summit, while Doko called on Fukuda, the prodevelopment leader, and his arch­ Ohira to maintain all of Fukuda's economic policies. rival Ohira. The makeup of Ohira's Cabinet - whether it in­ The failure of Fukuda's own election campaign thus cludes members of Parliament associated with set the stage for the massive vote-buying operations prodevelopment politicians such as former Prime conducted by the pro-China groups inside the LDP, led Minister Takeo Miki, Yasuhiro Nakasone, and Fukuda by Ohira and Tanaka. The "black money" support for or whether it is made up mainly of members Ohira in this campaign was so blatant that another associated with Ohira and his allies - will be an im­ candidate for the LDP presidency, Yasuhiro portant indicator of Ohira's ability to change the Nakasone, publicly denounced Ohira, charging that Fukuda policies. Ohira supporters had gotten control of secret LDP membership lists, enabling them to "canvass" for How Fukuda lost votes by paying large sums of money. It is not yet Despite the intensive "vote-buying" campaign run known how much money Ohira and Tanaka spent to by Ohira and his factional ally, former Prime Minister buy this election, but the amount is widely believed to Kakuei Tanaka, Fukuda's defeat was mainly caused have been enormous. Every Japanese voter knows by the election tactics adopted by himself and his that each LDP faction, including Fukuda's, spends allies. Fukuda was overconfident of his reelection, and money massively at election time, but Tanaka, who concentrated his campaign on the backroom wheeling has an enormous "grass roots" machine throughout

International Trade and Industry A weak Prime Minister Minister Yasuhiro Nakasone all supported a Japanese policy of securing closer ties to the Arabs The general consensus in Japan is the early 1970s, Japanese Prime through oil-for-technology deals. that Ohira is a weak man. Some Minister Sato sent a Defense During the Yom Kippur War and prefer the term "flexible"; others Minister to Washington with a ensuing oil crisis, Kissinger call him a "faceless bureaucrat." letter, giving him firm instructions demanded that Japan instead As the London Financial Tim es to give the letter only to President follow his own, pro-Israel line to noted, whereas "Fukuda is con­ Nixon himself or to a senior cabinet the letter. Ohira agreed, after fident of his intellectual ability to member. Henry Kissinger, at the being warned by a pro-Zionist convince others that his point of time only the National Security Ad­ lobby, pro-Peking Japanese view is right .... Ohira is likely to be viser and not in the cabinet, inter­ Foreign Ministry official that the less forceful." The Financial cepted the official and demanded "Jewish lobby controlled Tim e's publishers, the Rothschilds, the letter. When the official America," and that they would re­ should know ; since his public life refused, Kissinger went into a taliate if Japan crossed Kissinger began in the 1930s, Ohira classic rage, but still the official on the mideast issue. Tanaka over­ has propitiated what he considers refused to disobey Prime Minister ruled Ohira . to be the most powerful force in Sato. The reporter concluded, When London succeeded in Japan and the world : the pro­ "Ohira would have wilted and deposing Tanaka at the end of 1974, British Shibusawa-Mitsui business given him the letter." Ohira hoped to replace him, but and political group in Japan and its A top official described how Takeo Miki succeeded and con­ international patrons in London Kissinger terrorized and controlled tinued Tanaka's policies. Nonethe­ and among the London-linked Ohira when Ohira served as less the entire experience only in­ investment houses in New York. Foreign Minister in 1973. Prime creased Ohira's awe of London's One reporter described Ohira's Minister Kakuei Tanaka, Deputy powers. personality in the following way : in Prime Minister Takeo Miki, and As a result, when U.S. Treasury

40 INTERNATIONAL EXECUTIVE INTELLIGENCE REVIEW December 5 -11.1978 Japan, has shown the ability over the years to out­ Tanaka's money, however, was only one crucial spend his rivals. factor in determining Ohira's victory. Tanaka knew if he publicly pushed strongly for Ohira early in the Chinese connection? campaign Fukuda would tar Ohira with Tanaka's In his election strategy, Fukuda severely under­ "Lockheed" image. Tanaka only mobilized his forces estimated the help Ohira would get from the Tanaka at the last minute in a massive one-shot karate chop machine. Tanaka is still under pressure for the Wall against Fukuda. Street engineered "Lockheed scandal" and it was thought Ohira would try to minimize his dependency The Tanaka question on Tanaka as long as the cloud of political corruption In the end, it was the support of Tanaka that was hung over the former premier's head. It was also crucial for Ohira's victory. The alliance between the thought thLt Tanaka's political troubles would under­ two LDP leaders is little more than one of convenience cut his ability to raise money through his huge however, as Tanaka now hopes to be able to use his political patronage machine. influences over Ohira to ease the political and legal That Tanaka and Ohira were able to raise so much pressures on him due to the Lockheed scandal. money to, in effect, buy the prime minister's office for It is a bitter irony that Tanaka helped put into power Ohira, has raised the question of just where the money a man whose political mentors were largely respon­ came from . Undoubtedly, a major source of the funds sible for engineering the "corruption" scandals that for the Ohira campaign came from the massive intelli­ led to his downfall in 1974. Though Tanaka set a gence and "black operations" network in Japan precedent during his period as premier for many of controlled by the People's Republic of China. The the policies later pursued by Fukuda, today he is Chinese have never hidden their intense support for completely embroiled in legal battles and a political Ohira and Japanese press reports have noted that drive for undefined "revenge." This confused state of China was very happy with Ohira's victory. Chinese mind has opened the former premier to the kind of Vice-premier Teng Hsiao-ping made clear Peking's political manipulation represented by his alliance of continued interest in Tanaka when he visited the convenience with Ohira. former premier while in Japan last month. -Peter Ennis

Secretary Blumenthal attempted day Uchimura is a model promoted differs markedly from the main­ over the past year and a half to by the Shibusawa family-run Inter­ stream in Japan. The predominant blackmail Japan to abandon national House of Japan, which policy in Japan is to seek friend­ development-oriented economic also sponsors the terrorist J apan­ ship with China without letting that policies at home and abroad, then ese Red Army and the anti-indus­ effort harm the establishing of Liberal-Democratic Party Secre­ trial terrorists who tried to shut close economic cooperation with tary-General Ohira advocated con­ down Tokyo's new Narita Airport the USSR. Ohira in contrast in­ cessions to Blumenthal every step this summer. Are Ohira's own cludes among his advisers men of the way, such as reducing ex­ Shibusawa family connections the who have traveled to China to ports. He opposed privately - he reason he attacked Fukuda for "re­ discuss military cooperation be­ dared not oppose publicly - pressing" the Narita demonstra­ tween Japan and China against the Fukuda's international economic tors? USSR, i.e, the Brzezinski "China­ initiatives this year. Instead, Ohira In 1936, Ohira joined the Finance Japan card." It is known, in fact, supported increased power by the Ministry, then under the control of that Peking provided funds to International Monetary Fund. Sehin Ikeda, the head of Mitsui, members of Ohira's faction this Bank and the self-described past summer. Ohira has admitted, Ohira's roots Hj almar Schacht of Japan. Ikeda however, that in practice it will be Ohira's beginnings as a public offi­ was the most important British and impossible for him to carry out his cial came under the aegis of the Shibusawa family agent within the own inclinations in this matter. pro-British Shibusawa-Mitsui net­ Mitsui cartel and within Japan as a Despite his own pro-London works in Japan. He was picked up whole. He funded the pro-British obsequiousness, that very by the Shibusawa Fabian "strike north" faction of the army weakness of will means that if "Christian" networks in the mid- in the 1930s. To this day, Ohira's sufficient pressure is put on Ohira 1930s, when he joined the Salvation advisers and political backers in public to follow the "Bremen Army and began espousing the comes from this Shibusawa-Mitsui East" policies of the Fukuda ad­ theories of 19th century "Christian network. ministration, he can be forced to go Pacifist" Kanzo Uchimura. To this On China policy as well, Ohira along.

December 5- 11, 1978 EXECUTIVE INTELLIGENCE REVIEW INTERNATIONAL 41 Th e Story of the Century! DOPE INC.

Britain 's Opium Wa r Against the United States

AN EXCLUSIVE REPORT by U.S. Labor Party investigators on the who, how, and why of the British Oligarchy's centuries-old control of the multibillion dollar "hidden economy" of the international illegal drug trade. A 416-page paperback with over 40 pages of charts and pictures. $5.00 Plus $1 .00 postage and handling

Prepublishing bulk ra tes available on request from: Campaigner Publications p.o. Box 1920 G.P.O., New Yor k. N.Y . 10001 EUROPE )

The truth about the Mora murder breaks into Italy's press

European Labor Party book is also scrutinized by Italian government

"The Queen is responsible," headlined last weekend's who must be exposed if the nation is to rid itself of the Panorama, considered to be Italy's equivalent of Tim e source of funding for the gigantic terror wave and magazine. "The Queen didn't work all alone : helping accompanying destabilizations which now threaten her were the English Secret Services, the Israeli Shin the stability of the government. As leading individuals Beth, the Sovereign (Military) Order of Malta, the investigating Italian terrorism corroborated to the Socialist International, the aristocracy in general," ELP just prior to the Milan round table discussion, Panorama flatly announced in a review of "Who drugs lie at the heart of the terrorist problems: it is Killed Aldo Moro," the drug-terrorism expose pro­ the dope-peddling networks which fund terrorism, and duced by the European Labor Party (ELP). drugs are the basis for recruitment into terrorist The Panorama coverage coincides with both a gangs. Milan European Labor Party round table discussion Not surprisingly, therefore, the noted Italian held to pass on further intelligence of the drug-terror­ Communist Party (PCI) judicial expert and journalist ism network in Italy, and the worst wave of terror Mauro Brutto was murdered in the classical Italian­ since the events leading up to the January collapse of staged car accident the day before the ELP's round the former Andreotti government and the subsequent table discussion, after he had phoned the ELP to kidnapping of Moro three months later. report that he was following terrorist leads into the Those knowledgeable of the Panorama editorial Italian Mafia. Brutto's death was only the latest in a policy, as well as its financial backing in the circles of series of well-targeted murders of Italian FIAT magnate Gianni Agnelli, were no doubt shocked investigators, including judges, responsible for to see the magazine detail the documentation by the unraveling the source of current, absolutely massive, ELP of the British-Zionist dope-peddling circles which destabilization operations including terrorism. carried out the attack on Moro. However, Panorama 's At press time the situation shapes up as follows : the worry that the Italian authorities are actually acting "right-wing" side of the destabilization is being on the ELP evidence was expressed in their version of coordinated by Christian Democratic Senator the expose, edited to read as assertions with no proof. Massimo De Carolis, noted subaltern of the Council on Nevertheless, it is well known among relevant Foreign Relations, who earlier this month predicted circles that the ELP's Moro brief is under close an "Iran-style" wave of chaos to occur in Italy. De scrutiny inside the Interior and Justice Ministries and Carolis is currently touring Italy in the company of the security services, who snatched up all available Enrico Pruner, secretary of the South Tyrol (Alpian) copies at the nationally attended press conference party who emerged victorious in last week's regional where the brief was first presented to the public elections on a platform of creating a central "Europe earlier this year. of the regions" through the cooperation of the Alpian states under the leadership of the noted Bavarian neo­ Drugs and murder fascist, Franz-Josef Strauss. The European Labor Party recently sponsored a De Carolis, in an interview Nov. 26 with La highly successful round table discussion on the drug Repubblica , offered Strauss as his model, while problem in Milan, Italy with the participation of announcing his Italian tour to organize the "mass of Italian Communist Party members, the Milan and discontented supporters" of the Christian Democracy Veneto antidrug centers, a magistrate, various (DC) . In fact, De Carolis will be activating throughout newspapers including the Catholic Studi Cattolici, and the peninsula the avowedly fascist networks of the others. convicted former head of Italian military intelligence, Speakers at the discussion laid out in detail the Miceli, who was responsible for orchestrating the British-controlled international drug network and its attempted coup d'etat of 1974. Miceli's fascist intelli­ interface with international - including Italian - gence-terrorist networks are run by the noted Luz­ terrorism, targeting those institutions and individuals zatto family of Venice, according to highly placed

December 5 -11, 1978 EXECUTIVE INTELLIGENCE REVIEW EUROPE 43 terrorist sources who should know: this is the same Strauss-allied Luzzatto family which helped finance the victory of the fascist parties in Italy's northern Alpian regions earlier this month and whose repre­ 'The Queen sentative will be traveling with De Carolis. That the wife of current U.S. Ambassador to Italy Gardner is a Luzzatto should be no surprise, given the is responsible' often-documented role which the Italian ambassador has played in current and earlier destabilizations Reflecting the enormous impact of the European against the government of Premier Andreotti. Labor Party's book. "Chi ha ucciso Aldo Moro. " Panorama of No v. 28 ran thefo llowingco verage: On the 'left' On the "left-wing" side of this terrorist scenario Heading the plot was Elizabeth II of England. The Bri­ stands the Italian Socialist Party (PSI). and the PSI­ tish Crown, together with all of the world's monar­ controlled Italian Social Democratic Party (PSDI) , chies (including the House of Savoy), have been at­ and the Radical Party of gay rights activist Pannella. tempting to destabilize the Italian situation for a long All three are now openly calling for a government time. The ELP' (European Labor Party), (a strange collapse before Dec. 4, the date on which the European group, well-funded, self-defined as leftist, but sus­ heads of state will meet to finalize arrangements for pected of being linked in reality to American con­ the Jan. 1 creation of the European Monetary System servative circles) is sure of it. In a book tantalizingly (EMS). PSDI Secretary General Pietro Longo is entitled "Who Killed Aldo Moro?", the ELP runs a 110- demanding a meeting of party chiefs with the Prime page story of the conspiracy. First of all the general Minister to discuss the issue of Italian entry into the organization and its commanders. The Queen didn't new monetary system. while PSI Secretary Craxi is work all alone: helping her were �e English Secret openly calling for a new government which would abolish the current cooperation between the Christian Democrats and the Italian Communist Party. Meanwhile "left-wing" terrorism operating out of the PSI, Pannella's radicals, and the interfaced Red The monarchy, the left, and the right Brigades gang continues unabated, escalating daily under the direction of the noble Pallavicini family, one As shown in this chart taken from Chi ha ucciso Aldo of whose members is charged with the kidnapping of Moro, the European Labor Party's explosive expose Aldo Moro. on Italian drug-running and terrorism networks, the Thus far the government has. however, managed to Sovereign Military Order of Malta, under the British remain firm against this onslaught. As happened Crown, sits directly on top of Italy's "Ieft-versus­ during the Moro affair, significant credit must be right" terrorist confrontation - "Strategia della given to the government's decisive supporter. the PCI. Tensione" - and ties into both the right and left of Communist General Secretary Berlinguer has the political life of the country. both the Socialist responded to targeted attacks on the cabinet's support International (left) and the Black International (right), for the European Monetary System by releasing an both Zionists (left) and the "Golpisti," or coup­ interview on Nov. 25 which for the first time grants the makers (right), EMS unconditional support. The interview connects In addition to Identifying many personalities named the need for the creation of a new world monetary here, the Nov. 28 Pa norama coverage of the ELP system to the need for securing world peace and book also identifies Indro Montanelli, editor of /I disarmament. Giornale, Stefano Rodata, and Red Brigades "ex­ Berlinguer denounces the current international pert" for L 'Espresso, Mario Scialoja as prominent monetary system for preventing development and press supporters for this the British "empire" in threatening peace, at the same time extolling the Italy. "intensive" role which Italy and the rest of Europe . . - Others highlighted 'here and mentioned In must play "to favor development of collaboration with Panorama are Amintore Fanfani, right-wing Christian the Third World, disarmament, the safeguarding of Democrat Senator, former fascist, and a member of peace. (and) the transformation of the present the Sovereign Military Order of Malta (SMOM); international economic order which condemns more Giorgio Amendola, member of the Directorate of the than one-third of humanity to hunger, Italian Communist Party (PCI); Ugo La Malfa, underdevelopment, endemic diseases, and illiteracy." President of the Italian Republican Party (PRI); and Bettino Craxi, present Secretary General of the Italian Socialist Party.

44 EUROPE EXECUTIVE INTELLIGENCE REVIEW Oecember S-11, 1978 Services, the Israeli Shin Beth, the Sovereign (Mili­ already killed Martin Luther King, John and Robert tary) Order of Malta, the Socialist International, the Kennedy, and Enrico Mattei. On their hit-list are three aristocracy in general. other important entries : assassinate Helmut Schmidt, Then come the supporters: the Nazi-British Mit­ Giulio Andreotti and especially the half-known Pres­ terrand, the head of the Marseilles clan, the Socialist ident of the U.S. Labor Party Lyndon LaRouche, the Michele Achilli, the organizer of the Mazzotti kid­ ideologue of the ELP and discoverer of the plot. But napping, monarchist Indro Montanelli, all the mem­ why did they kidnap and kill Aldo Moro? The ELP re­ bers of the Carac ciolo, Pallavicini, and Colonna veals the answer to this as well. Because Moro, along families, Ripa di Meana, N. Bassetti, then Amintore with the sane forces of Italy (Michele Sindona, Giulio Fanfani, Umberto Agnelli, Massimo De Carolis, Andreotti, Enrico Berlinguer, Luigi Granelli, Giorgio Amendola, Giorgio Napolitano, Ugo LaMalfa, Flaminio Piccoli, Giovanni Leone) and of the world the inciter of prison upsurges Stefano Rodota, ENI's (Pope Paul VI, Brezhnev, the Shah of Persia, Giscard Mafioso Francesco Forte, the creator of the Red D'Estaing, Helmut Schmidt, Takeo Fukuda), was at­ Brigades Francesco Alberoni, the Brigades' head tempting to realize the grand design for economic and Mario Scialoja, the terrorist-supporter and en­ cultural development, which he knew to be the only vironmentalist Pannella, hoodlum and heir to the solution for Italy. throne Charles of England, the Israeli agent Fran­ The order to kidnap Aldo Moro, according to the cesco Cossiga, the originator of red and black terror­ ELP, was given by British agent Piazzesi. the political ism Giacomo Mancini, the notorious arms smuggler editor of II Corriere della Sera. On March 12, Victor Emmanuel, and finally the man who left his Piazzesi wrote a long article concluding with the own calling cards in the Via Gradoli office, Bettino following phrase: "Moro is one of those fatalists who Craxi. accept death stoically - but only on one condition : All these people, according to the ELP, form a that it come as late as possible." The ELP comments perfectly meshed, trained organization. They have that this article was more than a death-knell, this was

Corona Britannica I I Internazionalesocialista Internazionale Nera Casa Savoia Brandt. M itterrand Skorzeny, Schacht Umberto di Savoia. Maria Jose

Coruere della Sera RIZzoh Vittorio Emanuole. Gabriella La Repubbllca Mondadof l La Stampa Bomp.anl Maria Pia. Beatrice OP Panorama Bo nghle r 11 Giornale n l • I'Espresso F a bb n Resto del Carlino l'Europeo Fel t r mel h --- La Nazione Medlobanca II Mondo Etas Kompass Sovrano Militare La Notte Lefebvre Fiat Fantani Caracciolo Craxi IFI Ordine di Malta Pallavicini De Carolis Nennl Plrelh ICenlo Spinelli. Bassetti Lombardi Olivetti Monte del Colonna. Orsini U. Agnalli. La Malia Camll I Paschi dl Siena Almiranle Ripa di Meana.Luzzatto Amendola STRATEGIA DELLA TENSIONE Torlonia. Del Dr.alo Cetls Carli Napolitano Monti Balli Mallatti. Colonna ChlaromonlP Chigi. Rossi di Montelera Pesenh Ossola A gnel l 1968·1978 l E. Colombo Marco(a D'Amelio. Sellni Rauti Cosstga Schwarz.nb.r� Lorcdan L...--- PSI, PRI. Partilo d' Azione Gallont Lotta Continua. Manifesto Saragal Feltrinelli Aliata di MSI, UMI. Europa CivUlt Italia Noslra Montcrealc Borghcs.

Sanguinetti La za gn a

Bri.ate Rosse Ordine Nero Sionisti GAP Prim.aLinea Golplstl Amici di lsraele Rosa deiVenti pel-NL Seniga Freda-Ventura Maoisti De Lorenzo Piperno I Henke De Benedetti CENTRO MONDIALE COMMERCIALE " Miceli Maletti PERMIDEX

I MAFIA I Anonima Sequestri . droga LiggiO. Clanclmmo. TOrrl. AChtlli. Fortuna

December 5 -11, 1978 EXECUTIVE INTELLIGENCE REVIEW EUROPE 45 the marching-order. In any case Piazzesi, according Italy) - a growth that however must realize itself in to the ELP, is one of those British agents who require different ways than currently - require a serious major attention. Thus when he wrote on August 1 that acceptance of the reasons for development and justice Andreotti is "a man devoted to sacrifice, who demon­ of the "Third World" countries, and the initiation with strates a reassuring vitality and energy despite the them of a policy of cooperation on the basis of equal­ fact that he is sometimes pictured as almost dead or ity . But that means, in Western Europe, a profound about to die," for the ELP this means that Piazzesi transformation of the economic structure and the has fingered the next victim. social order, a change of the ruling class and the affir­ But why is it that the destabilization plot, the at­ mation of a new system of values. It is only in these tempted coup d'etat of April to bring Fanfani (the terms that it is no longer rhetorical to speak, as we do, representative of the Savoy wing within the D.C.) into of a more articulated conception of international soli­ power didn't succeed? In sum, the ELP says it was the darity, of common action for the overcoming of firm position taken by the Vatican, the government counterposed military blocs, and to prevent their logic and the PCI to outflank and foil the plot, despite the from extending itself to other continents. Anglophile press (Panorama, L'Espresso, La Repub­ .. . The fundamental question that we have to face blica, La Stampa, Il Messaggero), which did every­ is how to increase employment, and expand socially thing to create a favorable environment. useful production and economic development The ELP editors precisely point out the place where balanced on a global scale . In a few words, how to Moro was kept prisoner. It is probable that the apart­ promote a concerted international division of labor ment in question is the one owned by Prince Johannes which would give rise to a single world market . ... Schwartzenberg, Ambassador of the Knights of Malta. Advertisement The Palazzo Schwartzenberg, which has territorial immunity, stands at the corner between the Via delle Botteghe Oscure and Via Caetani. And why wasn't the 99.9% of the universe is Prince questioned about it? The plot thickens. The Prince himself, says the ELP, was surprised by the fact that nobody asked him about it. Why not ask him now? Too late : the conclusion by the ELP is typical of the classic mystery thriller. Prince Schwartzenberg died, in a car accident, a few days after Moro's body was found.

Berlinguer on Italy's world development role

Enrico Berlinguer. Secretary General of the Italian Communist Party. recently provided his endorsemen t for the new European Monetary Fund. Here. we present his views on a particular problem which fa ces th e new EMF as it begins operation Ja n. 1. from an in tervie w published in th e Italian Communist Party's find out about dailyUnita on No v. 24. The ABC's of Plasma Physics Q: Do you think that th e support by th e European in the November issue of workers ' movem en t and democra tic forces for the people of southern Africa has been or is suffi cient? A: No, it's still not enough. International solidarity cannot live only by indignant demonstrations and pro­ FUSION tests against the horrors of racism and apartheid .... There is a role that we think Italy could play in Europe featuring to initiate a policy of cooperation with the countries of "Elementary Plasma Physics from Africa : and there is an irreplaceable role that Europe an Advanced Standpoint" should play in favor of developing world collaboration by Dr. Steven Bardwell for disarmament, safeguarding of the peace, the transformation of the present unjust international eco­ 10-issue subscription, $18 nomic order, which condemns more than one third of Single copy, $2.50 postpaid humanity to underdevelopment. hunger, endemic dis­ Send check or money order to: eases, and illiteracy. Fusion Energy Foundation Box 1943. GPO. New York. N.Y. 10001 ...The same reasons for the civil and economic growth of the "metropolitan" countries (including

46 EUROPE EXECUTIVE INTELLIGENCE REVIEW December 5-11. 1978 THIRD WORLD )

Dealing Latin America into the EMS

The new monetary system offers industrialization and trade

Spain's King Juan Carlos completed a two-week visit relations with West Germany, France, and Italy. to Mexico, Peru, and Argentina on Nov. 30. The mon­ The most important agreement reached by the arch's trip represents a step forward in concretizing German-Brazilian Commission was that Germany Spain's role as a bridge between Latin America and and Brazil would work together on joint ventures in the European community and the soon-to-be func­ third countries in South America and, especially, in tional European Monetary System. Spanish Foreign Africa. Minister Marcelino Ovoja recalled Spain's "bridge" At the end of the commission meeting, the Brazilian vocation on the eve of the trip, while Juan Carlos Foreign Minister let it be known that within the next stated his goal of creating an Ibero-American Com­ month he will tour 10 African countries, including oil­ mon Market and, as a Le Monde editorial of Nov. 20 rich Nigeria. His ministry also announced that West noted, a "community of Ibero-American nations." German Chancellor Helmut Schmidt will visit Brazil King Juan Carlos's tour is only the latest evidence of in late April 1979 to further bilateral relations between European and Japanese efforts to integrate Latin the two countries. America into the EMS-based "Grand Design" for a Jiirgen Ponto's original conception was to use Euro­ new world economic order. These efforts have been pean-Latin American relations to "build bridges" be­ focused most intensively on Latin America's two tween black and white Africa on the basis of economic major economic and political powers, Brazil and development, as the best guarantee of permanent Mexico. peace on that continent. Hans Friderichs, president of West Germany's The theme of joint economic cooperation in Africa Dresdner Bank, visited Brazil at the beginning of No­ was also a top agenda item in the talks between Gis­ vember to carry out the plan of his predecessor, card d'Estaing and Brazil's President Ernesto Geisel Jiirgen Ponto : integrating Latin America into the during the French President's visit to Brazil last European Monetary System's campaign for world October. Giscard's visit, the first by a French Pres­ industrialization. Ponto was assassinated by Baader­ ident since DeGaulle's 1964 trip, was heralded by Meinhof terrorists in August 1977, on the day he was to French financial press as picking up where De Gaulle fly to Brazil. left off in his attempts to bring Latin America into a Friderichs led a West German delegation to a European strategy opposed to the IMF -controlled meeting of the German-Brazilian Joint Economic international economic order. Brazilian press con­ Commission which worked out the details for ex­ firmed that Giscard fully briefed Brazilian leaders on panding the German-Brazilian economic partnership .. the European Monetary System which he and Helmut The commission reaffirmed the multi-billion-dollar Schmidt have created. model nuclear technology transfer program West Germany is providing Brazil, and removed obstacles The Japanese plug in dollars to increased West German industrial investments in The Japanese, in conjunction with their European Brazil and rising Brazilian exports to Europe. allies, have been playing a unique role in financing the What the Europeans and Japanese are offering introduction of the Grand Design into Latin America. Latin America looks particularly inviting in contrast The most advanced political expression of this thrust to the "appropriate technology" austerity programs is in the agreements reached between Mexican Presi­ offered the continent by the International Monetary dent Jose Lopez Portillo and Japanese Prime Minister Fund and endorsed by the U.S. Administration. Takeo Fukuda during Lopez's visit to Asia last month. Brazil's Foreign Minister Antonio Azcredo da Silveira (See our Nov. 14-20 issue, Vol. V, No. 44, for details.) opened the West German-Brazilian Commission Those agreements have now paved the way for extend­ session by declaring "Our first economic partner is ing Japanese investment throughout South America. the European Common Market, followed by the coun­ Kawasaki Steel of Japan, for example, is so intent tries of the developing world and, in third place, the on building a $3 billion steelmill in Brazil, in part­ United States." Da Silveira cited, in particular, the nership with Finsider of Italy and the Brazilian treOlendous growth in the past two years, of Brazilian government, that Kawasaki has persuaded a group of

December 5-11. 1978 EXECUTIVE INTELLIGENCE REVIEW THIRD WORLD 47 Japanese banks to finance most of the Brazilian share partners - as the most important accomplishment of of the mill. The Japanese decision to press ahead with the Geisel period. Figuereido. who a year ago ex­ this project. which will produce 3 million tons of semi­ plicitly stated that Brazil did not need Japan-style finished steel per year primarily for export. clearly intensive industrialization. recently told press that points to a Japanese view of an expanding world trade Brazil wants expanded trade relations with Japan and situation - not a trade collapse and recession. The Japanese technology transfer . arrival in Brazil last week of Toshiro Doko. head of the The Japanese also played a spoiler role against the powerful Japanese business group Keidanren. indi­ International Monetary Fund in the Nov. 2 "Paris cates that the Kawasaki deal is only the beginning of Club" renegotiation of the debts of bankrupt Peru. The even more ambitious projects. Japanese had demanded an arrangement designed to The impact of the obvious opportunities offered by maintain a high rate of trade between the two coun­ integration into the European Monetary System is tries. essentially on a barter basis. This proposal hitting strongly in Brazil. Indicative of the potential panicked Peru's monetarist creditors. who were EMS influence on internal politics is the uncharacter­ pressing Peru to slash its imports. According to the istic statement Oct. 16 by newly-elected Brazilian New York Journal of Com merce. the Japanese motion president Gen. Jose Figuereido praising the "brilliant was finally beaten down by representatives of the foreign policy" of Foreign Minister da Silveira - Carter Administration at the debt renegotiating meet­ orienting Brazil increasingly toward Arab and African ings late last month . markets and toward European and East bloc trading - Mark Sonnenblick

is now the dominant ideology in pression of 1929 and the Second EMS foes rage: Western Europe. This conception World War. 'u.S. should have implicitly excludes countries like Brazil (despite the speeches and Finally. "Is Germany Ne ces­ A-bombed Germany' agreements signed by Giscard in sary?" appeared in Folha. Oct. 25 : Brasilia) from any role except as If it had been up to me. it would Th e strong EMS deploym en t to providers of raw materials and not have been on Japan that the Latin America was. predicta bly. recipients of exported technology. Americans tried the atomic bomb. met with a counterdep10ym ent capital. and multinational com­ In retrospect. few things irritate from the EMS 's bitterest fo es. Dur­ panies. me more than Stalin having ing French Presiden t Giscard 's silenced Ehrenburg on the radio early October visit to Brazil, the "Europe: Th e Sp ecter of Un em­ when he incited the Soviet troops to wing of the Bra zilian Social Demo­ ployment" follo wed in Folha on mass murder of Germans. or cracy closely associa ted with Willy Oct. 24. datelined London : Roosevelt's having dropped the Brandt and his World Bank com­ What I write is the product of plan of his Treasury Secretary mission on "appropria te technol­ several "briefings" from English Morgenthau to pastoralize ogies " for the Th ird World swung authorities (that is. MP's) . diplo­ Germany. American economic life into action. Folha de Sao Paulo. a mats. and financiers. All are unani­ would have been better today. Brazilian paper with strong influ­ mous in observing that the struc­ ... The ethos of German civil­ ence in nationalist industria l tural decadence of the American ization is authoritarian. robot­ circles, dispatched its most cynical economy. shown in the uncontrol­ ized ... The Thyssens. the Krupps columnist to Europe, German-born lable devaluation of the dollar. obli­ and the Farbens - the men who Ne w York columnist and Second gates all industrial nations to adopt built and profited from Auschwitz In ternational sympa thizer Pa ulo protectionist systems. This is are all here today and in power. Francis (also known as Fra nz HeiJ­ what Mr. Helmut Schmidt is pro­ disguised. And they were not even born) . Here are some samples of pounding and everybody in Europe the killers of Rosa Luxemburg ; his columns on the subject. gradually accepting. with mar­ the killers were the social demo­ ginal differences. I ask, what will cratic ancestors of Helmut "Helm ut Schmidt Is Winning th e happen to the Third World (which. Schmidt .... The Baader-Meinhof Th ird (World) Wa r" appeared in after all. depends on its export whose methods and objectives I do Folha, Oct. 11, da telinedParis : earnings to pay its debts) in the not admire. are perfectly compre­ The so-called European Mone­ face of the barriers created in hensible from the German psy­ tary System. a creation of Schmidt Europe and the United States? The chological perspective . with the aid of Giscard. is the order answer is that the Third World Today. for sure. they disguise of the day. France. with 1.5 million must recognize its place in the themselves. But. really. they are unemployed . .. is a satellite of order of things. . . . This type of the most recognized assassins in Bonn .. .. Schmidt's monetarism protectionism produced the De- history.

48 THIRD WORLD EXECUTIVE INTELLIGENCE REVIEW December 5 - 11 , 1978 Vote machine tam pering in Maryland

Freeman challenges Mitchell with evidence of 'recount' at the warehouse

"We thought the 1978 election was over," began the six Hanania Freeman's court fight demonstrates that o'clock news in Baltimore last Tuesday night, "but the Baltimore City Board of Supervisors of Elections Debra Hanania Freeman is going to the State Board of flagrantly violated the law in their purported Canvassers on Thursday to show the election results certification of the election on Nov. 20. But both city were wrong." and state officials are rushing to certify the election "Wrong" was something of an understatement. The before even more evidence is gathered. They are election results in Maryland's 7th Congressional being aided by Chief Judge Anselm Sodaro, who is District pitted incumbent Democrat Parren Mitchell sitting on the evidence presented to his court, allowing against Independent Hanania Freeman in one of the the clock to run out while the state election board puts most fraud-ridden elections in recent history. Hanania its imprimatur on the vote heist. Freeman claimed victory ("she even called our office Sodaro, stung by a leaflet distributed in Courthouse and asked when she could move in," said one Mitchell Square last week that denounced him personally, did a aide) and went to court. complete about-face and agreed to rehear Hanania Freeman's motion for an injunction. On Nov. 21 Windows, ladders and keys Sodaro refused to hear any evidence and then But bigger even than the fraud was the coverup of the dismissed the Hanania Freeman complaint. He based fraud, in the Mitchell machine's race to certify the himself on the representation by the assistant state's election. Representatives of the Hanania Freeman attorney that the city board had certified the election, campaign committee went to the warehouse where the so the motion for an injunction and voting machine voting machines were stored to make sure there was inspection was moot. adequate protection against post-election tampering But within hours the state's attorney's office called while a writ made its way through the courts. They Hanania Freeman's lawyers to confess that they had were staggered at what they found. made a "mistake" and that the election was only "There were no Baltimore City Police inside or "verified," not "certified." Hanania Freeman's outside the warehouse ; there were no uniformed attorneys resubmitted the motion for an injunction security guards in or about the warehouse ; the so­ against the certification of the election, and the called 'ADT Protection Service' to protect the hearing was set for Nov. 27. There, Hanania Freeman integrity of the machines was nothing more than an and her representatives presented testimony on the alarm system on certain of the warehouse doors and ridiculous security conditions at the voting machine windows," one campaign worker declared in a sworn warehouse, all of which were completely confirmed by affidavit. Not only that, many of the windows were the president of the Board of Elections. broken anyway, with a ladder leaning up against one, a full set of keys to all of Baltimore's voting machines Election code violation was left unguarded and lying out on a counter, and At the Nov. 27 hearing, David Preller, president of the many of the machines were improperly sealed or Board of Elections, also described how he had gone hadn't been sealed at all. ahead and certified the election, even though Hanania Photographs were taken of the broken windows, Freeman's representatives had not yet had the keys, ladder, and unsealed machines and affidavits opportunity to exercise their legal right to verify the submitted to the courts. The Board of Canvassers vote on the machine. "We would have certified the responded with an extraordinary remark that showed election no matter who was standing there," boasted how much electoral honesty had decayed since the PreIler, proving Hanania Freeman's attorneys' Nixon-Lodge ballots were found floating in the contentions that the certification was in blatant Chicago River in 1960. "We're going to certify this violation of the Maryland Election Code. Preller failed election no matter what," Maryland Board of to mention that he had threatened to have Hanania Canvassers Secretary Willard Morris declared to Freeman's representatives arrested when they Hanania Freeman officials. "Even if you get an appeared at the warehouse to verify the vote totals - injunction, we'd still certify the election." at the written invitation of the Board of Elections.

December 5 -11. 1978 EXECUTIVE INTELLIGENCE REVIEW U.S. REPORT 49 "'n all fairness" alleges that Defendants did not take "adequate Whatever action the state board takes, Hanania measures to protect the voting machines" after the Freeman will escalate her battle against the corrupt election. . . . She asks this Court to impound voting judicial and electoral machinery in the state of machines. to issue a Writ of Mandamus and Order Maryland, with actions planned for both federal court compelling Defendants to allow her to "fully examine and in front of the U.S. House of Representatives. voting machines" ... (and) to enjoin the Defendants Meanwhile, a Baltimore television station is running from verifying and certifying the election. . . . an editorial calling on Hanania Freeman "in all It should be stated at the outset that mandamus will fairness" to abandon her campaign and, most never be granted if it would be nugatory or serve no important, "take down those damn posters," which just purpose. are all over Baltimore saying she won the election. The posters have elicited dozens of calls to the office Th e reply on charges of inadequate protection of the from Hanania Freeman's constituents who have been machines after theelection : enduring the Mitchell machine for eight years, (. ..) it seems clear from its context (of electoral ranging from complaints about broken traffic lights to statute Article 33, Section 16-10-ed.) and from the best Wishes in her new office. fact that election judges and polling place custodians are referred to that this section deals with protection of voting machines prior to and during, not after an election. But even if it is assumed that this provision does deal with post-election security of voting machines, it is clearly a discretionary proviso-i.e., The legal argument the Board is to call on the police to furnish such assistance "as may be necessary." The Board did not from both sides and do not regard such measures necessary here.

Thefra ud in Maryland left Debra Ha nania Freeman Board of Elections chief Preller admitted some with 11 percent of the vote against Parren Mitchell's election machines were never sealed. but asserted 89 percent. Ha nania Freeman had expected to win , that"in my vie w, " adequate protection was provided: and fo und sufficient evidence of vote fra ud to go to 7. The election judges are employed for two days a court to get an injunction. year, at most, and sometimes two or three years pass No t surprisingly, the whole affa ir soon began to reek between elections. (The last election prior to 1978 was of collusion between the court. the Board of Elections. held in 1976.) Some of the election judges have never and the backers of Parren Mitchell. Th e Baltimore served as election judges before. While they are Board of Elections moved to dismiss the petition for a carefully instructed as to their election duties pur­ writ of mandamus and preliminary injunction on the suant to Article 33, Section 2-7(g), they are human grounds that it would "serve no just or useful pur­ beings and, in my experience, it is clear that a small pose. " apparently on the line that the election results number of the 2,249 election judges are confused and were so lopsided that they should be immune from do not affix the seal on the voting machines correctly. legal scrutiny. Th at left theMi tchell machine to an­ However, in my view and that of the other members of swer what objection such honest and confident souls the Board, the other safeguards set forth in Article 33, should have to an inspection of themac hines by the Sections 16-15 and 16-16, including locking the opposition. machines, noting the number of voters as shown on the Following are excerpts from court arguments and public counter, and the number registered on the affida vits of the defendants. the Baltimore Board of protective counter, along with the other measures Elections and its president Da vid J. Preller. and from outlined in Paragraph 8, provide adequate protection Edward Spannaus. ballot specialist engaged by for the machines. plaintiff Ha nania Freeman. 8. In addition to the measures taken by the election judges pursuant to Sections 16-15 and 16-16 in protecting the voting machines, two full-time em­ Protection 'adeq uate': Board ployees at the warehouse prevent any unauthorized persons from entering it. All of these measures seem From the Board of Elections court argument against to me, and the other Board members, to provide Ha nania Freeman request to impound voting ample protection against tampering with and damage machines. allow full examination of voting machines. to the voting machines and accordingly, we did not and enjoin certifica tion of the election until that has and do not feel any police protection of the machines taken place: necessary. Plaintiff is an unsuccessful candidate ... defeated by Congressman Parren Mitchell-51.996 votes for Mitchell, 6,628 votes for Plaintiff Freeman. She

50 u.S. REPORT EXECUTIVE INTELLIGENCE REVIEW December 5-11, 1978 'Gross irreg ularities': ballot specialist #63298, #84292, #89493, #89494, *84294, #89800, #89801, #89802, #89803. The seal is supposed to be placed on the Excerpts from affida vit of Edward Spannaus, ballot machine by the poll judge at the close of the polls (see security sp ecialist for U. S. Labor Party legal staff, Article 33, section 16-15(b) of Maryland Election Ne w York City. Code) .... 8. I observed one instance where a seal was broken 3. In the course of conducting these investigations on a machine, and then was illegally replaced a few (on ballot security measures-ed.), I have been told hours later. As Mr. Primack and I were leaving for by numerous voting machine experts and election lunch, accompanied by a custodian, we observed that officials that voting machines can be tampered with the seal on machine #133177 was broken, which we and rigged in numerous ways, so that the machines pointed out to the custodian. Later, as we were leaving will not accurately register votes cast. This includes around 3:15 p.m., we saw to our surprise that a new rigging a machine so that the counter stops at a pre­ seal had been placed on machine #133177. The serial determined level, so that it repeats the 0-9 cycle number of the new seal was #48275. without ever transferring to the 10's column, and even 9 . I observed a number of discrepancies with respect transferring votes from one candidate to another. to the protective counters. The protective counter is 4. On or about November 17, 1978, I was asked by sometimes called the "perpetual counter ; " this Mrs. Debra Hanania Freeman to come to Baltimore to counter registers each time the machine is voted or represent her at the canvass of voting machines to be each time the machine is opened. Any discrepancies conducted on November 20, and to examine the voting on the protective counter are highly significant, as the machines to determine if they were functioning counter is always portrayed as the basic protection properly or if they had been tampered with. against machine tampering. (See Exhibit 5, part of a 5. On the morning of November 20, I went to the document by the AVM Corporation called "Can warehouse accompanied by Mr. Robert Primack. At Automatic Voting Machines Be Rigged?" in which the approximately 11 :00 o'clock a.m., after a number of purported role of the protective counter is explained.) delays and threats of arrest from Board of Super­ 10. The following are among the protective counter visors of Elections officials, I was allowed to observe discrepancies observed: the voting machines used in the November 8 elections a. Machine #89864 (Ward 9, Pct. 24) recorded on in the 7th Congressional District. I and Mr. Primack returns statement as 01284, but reads 012846 on continued to observe the machines until ap­ machine. proximately 3:15 p.m., when the warehouse closed for b. Machine #84294 (Ward 5, Pct. 1, also sealed the day. I examined perhaps 75 machines of the 600-700 wrong) recorded as 14673, but reads 14674 on used in the 7th Congressional District. I also observed machine. conditions in the warehouse itself. c. Ward 6, Pct. 3, both machines recorded wrong ; 6. During the course of my observations I saw the one recorded as 14004, but reads 14097; the other following conditions : recorded as 11058, but reads 11154. a. broken and improperly-placed seals on voting d. Machine #112545 (Ward 19, Pct. 4) discrepancies machines ; between protective counter figure and public b. discrepancies between the numbers registered on counter figure ; protective counter should read 8739 the protective counters on the machines and the not 8738 to equal the 84 votes on the public counter. numbers recorded on the poll judges' return sheets. e. Machine #1 12546 (same pct.) the key package c. discrepancies between the numbers registered in recorded the protective counter as 6166, although it the public counter outside the machine and the read 6243 at the opening according to the return public counter inside the machine ; sheet. d. discrepancies between the numbers registered on It should be emphasized that since this counter the public counters and the numbers recorded for registers any opening of the machine, a discrepancy of the public counters on the poll judges' return sheets ; even one number could represent tampering resulting e. discrepancies between the votes recorded on the in the loss of tens or hundreds of votes .... poll judges' return sheets and the votes registered 16. While I was at the warehouse all the keys for on the machines ; each machine were hanging visibly from the f. other types of damage to machines ; and machines. This included the #2 and #3 keys used by the g. totally inadequate security conditions in the poll officials, the #4 key used by the custodian to ac­ warehouse, with keys on all the machines while the cess the counters, and the "0" key used to open up the front door was sometimes unlocked and broken inside counter mechanism allowing the counters to be windows existed in various locations of the ware­ reset or changed. At the same time the warehouse house. appeared only to have the most minimal security Each of these conditions will be described in more precautions - the door was sometimes unlocked, detail immediately below. windows were broken, and locks to doors accessible. 7. I observed broken or misplaced seals on at least No police or uniform security guards were present at ten machines, including the following machines: any time ....

December 5-11.1978 EXECUTIVE INTELLIGENCE REVIEW U .S . REPORT 51 Israeli intelligence taking over CIA

Zionist lobby targets U.S.-Arab economic ties in bid to hamstring

A concerted drive against independent U.S. intelli­ In somewhat more academic language, the Jewish gence-gathering capabilities has been launched Committee report, authored by Massachusetts over the past two weeks by the Israeli Mossad foreign consultant Louis J. Walinsky and a long-standing intelligence service in cooperation with top-level Mossad collaborator, former New Dealer, economist circles of British intelligence and the U.S. Anglophile Robert R. Nathan, titled "Arab Investments and faction centered around National Security Council Influence in the United States," sets as its key head Zbigniew Brzezinski and former Secretary of objectives : State Henry Kissinger. Targeting primarily key to explore a) the recent explosion of Arab in­ traditional American business and industrial contacts vestments in the U.S. ; b) the manner and degree with important ties to the Arab nations and to Iran, to which they have contributed to the enormous this drive has the aim of circumventing U.S. exercise of U.S. policy decisions and private opposition to an Israeli escalation of the Middle East sector behavior; and c) to consider what U.S. situation, up to and including Israeli use of nuclear government policy responses to these develop­ weapons in long-range strikes against Arab Gulf °ments may be necessary, approI'piate and oilfields. A related intent behind crippling of the U.S. desirable to safeguard our national interests. Central Intelligence Agency is to fix U.S. operational This introduction sets off a 37-page diatribe against dependency on the Zionists and the British for "Arab power and influence in the U.S.," followed by a evaluations and policy guidelines. 12-page appendix that documents, item by item, 84 To these ends, several emergency Zionist Lobby cases of either "Arab Direct Investment in the U.S., operations have been set into motion - all signalled 1974-1978" or "Arab Contracts Awarded to U.S. Firms, by the Nov. 15 appearance of Israel's head of Military 1974-1978. " Intelligence, Shlomo Gazit, before a special Senate The content of the report, often rambling and staff session where he made the central point that unfocused, is an analysis of "Arab Investments in the American intelligence in Iran had "failed" and that U.S.," a section more remarkable for what it covers Israel had had a "better reading" of events there. up rather than reports. Filled with tables to document Since that time, key Zionist lobby controllers have the ostensible disparities between the total oil begun an extensive slander and watergating countries' surpluses and the "combined current campaign against those Americans who have tried to account deficits of the rest of the world," the report develop strong business and other ties with the Middle displays great concern over strange money flows - Eastern nations. but without once referencing the massive distortions The chief front organizations for the Mossad, the in world money flows created by the illicit B'nai B'rith Anti-Defamation League and the international drug trafficking and related offshore American Jewish Committee, are spearheading the banking operations. This process, Nathan and Israeli drive. Both Zionist organizations recently Walinsky are undoubtedly aware, is controlled from initiated a propaganda attack aimed at American the top by British and Zionist financiers. businesses and industries that deal with the Arab world, "pro-Arab" American leaders such as Bert The aerospace-commercial bank campaign Lance and John Connally, and - in the words of the The AJC's report occurs in the larger context of a ADL - "former U.S. CIA operatives once stationed in Zionist lobby watergating campaign unleashed the Middle East and now collaborating with the against those networks essentially interfacing the U.S. Arabs." commercial banks and the high-technology U.S. air In two massive reports issued last week, the AD L freight carrier-aerospace sector. and the AJC name hundreds of Americans, who, they The centerpiece of this campaign was an unusual claim, are "Arab agents." (See accompanying series of exposes made before a Senate Judiciary article.) subcommittee on Nov. 22 by a Morgan Guaranty

52 COUNTERINTELLIGENCE EXECUTIVE INTELLIGENCE REVIEW December 5 -11. 1978 ------�)

po licy making

peace advocates

executive vice-president. Harrison V. Smith. In looks more like recontrol of the airline industry rather response to questions from Ohio's Senator Howard than decontrol." Notably, the Star article concludes Metzenbaum. a Zionist lobby favorite. Smith suddenly suggestively that "under federal law a U.S. airline revealed that "three oil-rich Arab nations have would lose its right to operate in this country if more invested $2.2 billion in major U.S. corporations than 25 percent of its voting stock is owned by including significant ownership blocs in six airlines." foreigners" - a clear implication that the airline according to a front-page account in the Nov. 23 industry as a whole is about to be hit by a Zionist Wa shington Star. Lobby-British financing scandal. In an article entitled "Arabs Invest $2.2 Billion in Corroborating this is a pattern of reopening of U.S. Firms." Star staff writer Leonard Curry dossiers implicating U.S. air corporations in various emphasized that Smith's revelation was "the first bribery scandals. Thus, in Egypt, officials of Egypt disclosure of Arab investment in top-tier American Air with historical links to Seattle's Boeing Aircraft companies since the petroleum exporting countries have come under investigation during the past two inflated world oil prices five years ago and began weeks for having accepted bribes. And in Iran. the accumulating billions of dollars." dossier has suddenly been reopened on a two-year-old According to Curry, Smith detailed Morgan's hand case involving "dubious dealings" and "questionable in investing money for Saudi Arabia, Kuwait. and Abu payments" between New York State's Grumman Dhabi in equity positions. in some cases amounting to Corp. and Iranian military officials. according to a a near "controlling interest," in Seaboard World Nov. 28 piece by Wa ll Street Journal reporter Jerry Airlines. Trans World Airlines. Braniff. Eastern. Landauer. In a piece titled " Jets and Iran: Documents United. and Airborne Freight Corporation. at Grumman Raise Questions About Role of Shah's Hearing these details. Metzenbaum snorted. "This Aides in Plane Sales" Landauer predicts an immi-

Great Britain pushes 'astonishing arms sales' in Persian Gulf

In a No v. 28 interview, one of Wa shington 's most re­ This follows other reports that the British have spected experts in the field of military develop­ been showing that plane off to various Middle East ments in theMiddle East laid out the alarming pros­ airforces. including Abu Dhabi. Jordan, Kuwait. pect thatGrea t Britain has begun to undercut both Egypt. Saudi Arabia. and others. There is growing American and Fren ch interests in the Middle East competition between Britain and France on this. through a rapidly expanding arms sale campaign . and maybe growing British competition with us as throughout the area. Th e source began by evalu­ well. But the basic struggle is between Britain and ating recent evidence that the French are ha ving France. sudden difficulties in marketing aircraft and other This is part and parcel of a very active British military equipment to Egyp t and other Arab coun­ program to sell arms abroad. The British. as a tries under contra cts previously worked out be­ matter of national policy and not just aerospace tween Fra nce and theAr ab Gulf-funded Arab Mili­ interests' policy. have launched an astonishing tary In dustries Organization (AMID) . He contin­ sales effort abroad. including various delegation ued: tours of the Gulf. The latter delegations are obvi­ Reports are now circulating around Washington ously in competition with the French and the Amer­ that the British have stepped into the AMIO situa­ icans. and there are reportedly new goings-on tion in a big way. trying to market their Hawk jets. between the British and the Saudis.

December 5 -11, 1978 EXECUTIVE INTELLIGENCE REVIEW COUNTERINTELLIGENCE 53 nent Securities and Exchange Commission investi­ Paris since his ouster from Iraq two months ago. gation into an interlocked series of cases - all of The issue of Israeli intelligence expertise on Iranian which were first dredged up two years ago ! Not only intelligence is also increasingly being highlighted in Grumman is involved in this nexus, Landauer empha­ press sources with known links to liberal pro-Israel sizes, but also Rockwell International, the Bell Heli­ circles in the U.S. The Chris tian Science Monitor, Nov. copter Division of Textron, Inc. and Avco Corp. On the 28, praised Mossad's intelligence capacities in Iran as Iranian side, the targeted individuals have been indi­ better than those in the U.S., and states that Israel is viduals "extremely close to the Shah" and "strong "concerned" over the well-being of Iran's oilfields in supporters of U.S. defense interests." the event of a new upsurge. These scandals fit into larger relevant patterns, Mossad's intervention into the Administration's most particularly what one highly informed policy towards Iran is meant to undercut the Washington source refers to as Great Britain's established traditional "old boy" connections between "astonishing arms sales efforts abroad," especially in the Iranian court, the military, and Iran's secret the Persian Gulf (see box). police, SA V AK. As a result of Israeli and allied British Equally significant is an attempt to leverage the air intelligence attacks on the Shah using such opposition industry investigations into a general investigation leaders as the octogenarian Khomeini and other into the entirety of Arab-U.S. economic relations - Shi' ite and Sufi sects, these longstanding traditional exactly as per the ADL and AJC's recommendations. intelligence networks in Iran have suffered. Now, Thus, gleefully describing Harrison Smith's Israel and its allies are trying to destroy the CIA by revelations as "totally unexpected" and Smith charging it with "incompetence" in failing to himself as a "turkey," as he "spilled all sorts of things "predict" the revolt in Iran. he didn't have to spill," an aide to Metzenbaum - Mark Burdman gloated that "the Arabs will probably now take their money out of Morgan in anger at what Smith has done ; this could soon spill over to hit the Citibank and Zionist intelligence expert: Chase connection to the Arabs." 'Washington clearly fai led' Similarly, a second aide involved in Metzenbaum's subcommittee told this journal Nov. 29 that "it would Th e follo wing are excerpts fr om an article by form er be a logical progression" for the Metzenbaum Air Force Middle East intelligence coordinator Joseph questioning to extend into the "general nature of the Ch urba, which appeared in the Nov. 30 Baltimore Sun highly diversified Arab portfolios into energy, under the title "Strategic StakesJn Iran. " In the piece, defense, and utilities." Ch urba - collaborator of warha wk retired Air Force This push, in turn, traces back to a mid-November Gen. George Keegan and a known creator of the privately announced campaign by retired General Je wish Defense League - builds up a picture of a Julius Klein, one of the nation's highest-up military massive Soviet threat to Ira n as a means of "proving " connections to Israel's Mossad and a leading Chicago the unreliability of American intelligence services in area-based controller of Zionist lobby activities, to responding to "Soviet expansionism . " "go after David Rockefeller and Robert Abboud" (presidents of Chase Manhattan and First National Fundamental questions of Western security are being Bank of Chicago, respectively) for "being at the raised by the gravity of the current turmoil in center of the Arab big money relationship to the U.S." Iran ....Were Moscow to acquire a hold on Persian Gulf oil, the political and economic effects on NATO The Israeli Military Intelligence connection and Japan would be catastrophic ....In retrospect; In a parallel operation to that of Julius Klein, the Washington clearly failed to appreciate the extent to Zionist Lobby has taken an active role in the which Iran's concepts of national security were identi­ Administration fight to reshape the Central fied with the person of the Shah. Intelligence Agency's foreign operations. Two weeks Thus far, Moscow has maintained a deceptive public ' ago General Shlomo Gazit testified before 25 neutrality toward the Shah's plight. Presumably, such senatorial aides on the controversial issue of CIA pragmatism will continue until the Kremlin judges the incompetence in dealing with Iran's crisis. Gazit, time right to strike against the Shah .... according to the Wa shington Post, stated that the CIA Another disquieting point in America's "Iranian did not know about the building crisis in Iran until it policy" relates to the presumption of Iran's domestic was briefed by Israeli intelligence. What Gazit, of stability despite accelerated modernization. There course, did not state is that Mossad has well-known remains a general tendency in the National Security intelligence penetration into Iran and directly Council and State Department to understate the interfaces with the militant Iranian opposition, most sectarian and ethnic nature of Middle East society. importantly the fanatical Ayatollah Khomeini, who Such fragmented societies, lacking internal cohesion, was identified by highly placed French sources as a are inherently unstable and therefore never fully "top Mossad agent." Khomeini has been exiled in reliable for strategic sustenance ....

54 COUNTERINTELLIGENCE EXECUTIVE INTELLIGENCE REVIEW December 5 -11, 1978 ADL's corporate, intel l igence hit list

Report ties all U.S. links to Arab nations, firms, to 'Jew-baiters'

On No v. 18. the Anti-Defamation League of B'nai committees and subcommittees; - The law's B'rith released a report - by their own admission provision of one and two year waiting periods, aimed "the first of several" - on "The Arab 'Lobby' in the at preventing conflicts of interest, before former U.S. : Friends and Agents. " officials of U.S. departments and agencies may work Th e report was accompanied by a press release for foreign principals or governments is too short to issued by ADL general counsel Arnold Forster, who is protect the public interest adequately; - In the case otherwise widely known for th e incident in which he is of former officials of the CIA, U.S. intelligence, alleged to have participated in painting swastika s on security and defense agencies, the law should impose synagogues to heigh ten Jewish fears of anti-semitism . even longer waiting periods than for the others ....

Typical of thelegal lying employed by Forster and the * * * ADL in constructing the report is the concluding section. In that section. the rela tionships of all U.S. Below are excerpts from the report itself, with each citizens with Arab nations and firm s is compared with section labeled using the report's original subtitles : the case of Nazi crackpot William N. Grimstad. Th e irony of theADL callfor greater Congressional Introduction control over th e "Arab Lobby" is the virtual fr ee rein Who are the principal influence peddlers, contact enjoyed by the U. S. Zionist lobby in Wa shington and men, lobbyists, lawyers, publicists and consultants their wildly subversive influence on American working as Arab emissaries in this country? The institutions and stra tegic interests. "Middle East Connection" - is it a euphemism for According to th e press release accompanying the conducting big business, or influencing American report: foreign policy, or a bit of both? And why do the Arab states recruit - offering eyepopping retainers - from The report. issued in conjunction with ADL's four­ an elite roster of former U.S. Government and day national commission meeting at the New York military officials? Hilton Hotel through November 20, is the first in a The answers to these questions are to be found in the series being prepared by the agency on various activities of Americans who make up the Arab lobby aspects of what it calls "the Middle East connection" in Washington, New York, Atlanta, Houston and other in order to understand the extent and impact of Arab key political and economic centers in America .... influence in the U.S. The intense lobbying and "public relations" According to Arnold Forster, ADL's general activities by Saudi Arabia and its American counsel. the Arabs are insinuating themselves into representatives in the spring of 1978 raised U.S. government, political and business circles with fundamental questions about the goals, depth and the help of former top American government offi­ methods of Arab influence in the U.S. This was cials .... particularly noticeable during the weeks of debate on The ADL report acknowledges the new "Ethics in the proposed U.S. sale of highly sophisticated F-15 Government Act of 1978," enacted by Congress and warplanes to Saudi Arabia as well as to Israel which signed into law by President Carter on October 26, but had prior U.S. commitment for the planes .... says the section on conflicts of interest does not go far To understand what has been happening, the Anti­ enough, in view of the record of activity by former Defamation League is conducting a study of the U.S. officials on behalf of Arab governments and sources and uses of such power and the over-all extent private Arab clients. The law, which becomes and impact of Arab influence in the U.S. ADL has effective July 1, 1979, imposes certain prohibitions and completed the initial phase of this project. restrictions, including time bars, on some activities by This report is the first of several on ADL's findings. former officers or employees of Executive Branch departments and independent agencies of the U.S. The Arab Thrust government. When the Saudi Arabian campaign was launched to The League cited the following as "gaps and win approval by the U.S. Congress of the sale of the F- weaknesses" which should be remedied ; - The law 15s, the Saudi Embassy in Washington issued a secret does not apply to former members of the Senate and seven-page memorandum of instructions to its the House, to their administrative aides and staff, or American lobbyists suggesting that the "economic to other former employees of the Legislative Branch, advantages of the Saudi-American relationship" be such as counsel and staff members of Congressional stressed in their efforts ....

December 5- 11, 1978 EXECUTIVE INTELLIGENCE REVIEW COUNTERINTELLIGENCE 55 'High Level Personalities' firms such as Doremus and Co .; Jones, Brakely and The Saudis ... have a startling array of registered Rockwell, In c. ; Moss In ternational; and others for agents in Washington .... Their main man in the shaping U.S. public opinion fa vora bly to ward the capital is Frederick G. Dutton .... He was Arabs.) recommended to the Saudis by former Sen. J. William Other Registered Agents Fulbright .... Also lobbying for the sale by the U.S. of the F-15s to (In this section, numerous other individuals and Saudi Arabia was J. Crawford Cook, Inc .... firm s, among them White Power editor Willia m N. Cook is a close friend of former Governor John C. Grimstad, are cited for their links to the Arab world. ) West of South Carolina, now U.S. Ambassador to Saudi Arabia .... Conclusion Two former Presidential Cabinet members have The registration of the Nazi, Grimstad, as an agent for been working for the oil interests of Algeria - Richard the Saudis was, in a sense, a throwback to the days of G. Kleindienst, Attorney General under President the 1950s and the early 1960s when Arab efforts to Nixon, and Clark Clifford, Secretary of Defense in the influence American public opinion in their struggle Johnson Administration .... against Israel were frequently crude and primitive (Thesec tion goes on to target other "Arab agents ": and when their trafficking with domestic Jew-baiters Henry Kearns of Kearns In ternational; Raymond H. of the Grimstad stripe was far more frequent. Close and Stephen Conner of Manara Ltd. ; Kermit Today, the Arab penetration of the U.S. scene, Roosevelt; John O'Connell of the Connole and already well along, is carried on in the corridors of O'Connell la w firm ; Pa trick J. Caddell of Ca mbridge Congress and in the top banks and boardrooms of Reports, In c., George H. Hearn of the U. S. Ma ritim e Corporate America, or in the paneled libraries of Commission ; Najeeb Ha laby of Arabair Services leading law offices .... Corp. ; and Willis C. Armstrong, adviser to Saudi In the U.S. Government today it seems clear that we in vestor Adnan Kh ashoggi.) need stricter safeguards to protect the public interest in the case of former government officials eager to sell Money and Politics their know-how - and their influence - to private (This section fingers Gerald Parsky, head of the clients, both American and foreign, and to foreign Wa shington office of Gibson, Dunn and Cru tcher; governments or their arms and agencies. Petra Capital Corp. ; the Wa ll Street firm of Smith Federal law has for some time imposed certain Barney, Harris Up ham ; the Houston la w firm of John prohibitions and restrictions on some such activities B. Connally, Vinson and Elkins; Bert Lance; and by former officers or employees of Executive Branch Spiro Agnew, for cultivating business in terests with departments and independent agencies of the U.S. prominent Arabs such as Ghaith R. Ph araon and Government .... KhaledBen Mahfouz.) ... The experience of the recent Arab "petrodollar years" and the record of activity by former U.S. Know-How - and 'Political Influence' officials on behalf of Arab governments and private (This section attempts to document how the Arabs Arab clients suggests certain gaps and weaknesses in secure "know-how" and "politicalclou t" to build their the law .... image and influence in U. S. government and ... The public interest of the American people corpora te circles.) requires special protection both from private domestic interests and from foreign governments and Agents - and 'Services Rendered ' foreign principals whose interests may not be the (This section "re veals " how a "financial and same as the national interests of the United States . economic consultant... conceded to ADL that he does The U.S. Congress has recognized - if not for itself ­ handle political and propaganda assignments for his the need for special safeguards and has enacted client. ") limited restrictions, prohibitions and requirements to serve the American interest. ' 'Image Builders' and Opinion Molders Congress, however, has not gone far enough. (This section targets advertising and public relations

56 COUNTERINTELLIGENCE EXECUTIVE INTELLIGENCE REVIEW December 5-11.1978