-Caveat Lector-

from:
http://www.assumption.edu/WebVAX/Nation/Cockburn24Feb92.html


Chapters in the Recent History of Arkansas

by Alexander Cockburn
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By the mid-1980s, Arkansas was a crucial link in the contra war against
Nicaragua being masterminded from Washington. One scheme for maintaining a
cover-up for Oliver North's network was, it appears, played out in the
Governor's mansion occupied by Bill Clinton.

Among the occupants of that same mansion was Buddy Young, a man then, as
now, in charge of Clinton's security. According to court documents filed by
Terry Reed, a former C.l.A. asset involved in North's contra supply effort,
Young was a pivotal figure in a case designed to land Reed in prison not
long after Reed had walked out of an arms-for-drugs operation in
Guadalajara, Mexico, where he had been working with C.I.A. man Felix
Rodriguez.

Arkansas's role in the contra war and in an arms-for-drugs supply network
goes back to the early 1980s and the airport at Mena, Arkansas, discussed in
this column two weeks ago. A federal investigation aided by the Arkansas
State Police established that Barry Seal, a drug dealer working for the
Medellin cartel as well as with the C.I.A. and the D.E.A., had his planes
retrofitted at Mena for drug drops, trained pilots there and laundered his
profits partly through financial institutions in Arkansas. Seal, at this
time was in close contact with North, who acknowledged the relationship in
his memoir. These were the years in which North was constructing his covert
supply lines for the contras.

Among those recruited by North was--so the man has subsequently asserted in
court papers--Terry Reed, formerly with Air America in Thailand. Reed says
he was working for North by 1983. North put Reed in touch with Seal and by
1984, Reed had established a base at Nella, ten miles north of Mena in the
Ouachita National Forest. There Nicaraguan contras and other recruits from
Latin America were trained in resupply missions, night landings, precision
paradrops and similar maneuvers. Reed, familiar with the commercial affairs
of Mena, asserts that large sums of drug money were being laundered through
leading Arkansas bond brokers, a pattern of investment also being considered
by a federal investigator just as his researches were abruptly terminated.

One of Reed's contacts in North's network was William Cooper, another Air
America veteran then working for Southern Air Transport. Cooper was at the
controls of the C-123, once owned by Seal, that was shot down by a
Sandinista soldier on October 5,1986, thus--since it was loaded with arms
and documentation linking the crew to a chain stretching back to the office
of Vice President George Bush--helping to fuel the Iran/contra scandal then
bursting upon the world. That plane had been serviced at Mena. Cooper died
in the crash.

His crewman, Eugene Hasenfus, survived.

Back in 1985, Cooper had suggested to Reed that he go to Mexico and set up
an operation expanding the supply network. Reed agreed, traveled to Veracruz
for discussions with Felix Rodriguez and, in July of 1986, set up a front
company, Machinery International, in Guadalajara.

Three months later Cooper was dead and Hasenfus was being paraded by the
Sandinistas before the Managua press corps. Reed says that Machinery
International's business, "trans- shipping items" in "support of our foreign
policies," was put on hold until January 1987, this at a time when the
cover-up was pressing forward in Washington. Seven months later, Reed says,
he became aware that drugs were part of the shuttle passing through
Machinery International's premises in Guadalajara and that he himself
presented a likely candidate as fall guy if things came unglued.

Reed says he confronted Rodriguez and told him he was quitting. By early
September 1987 he had returned to the United States. A month later Buddy
Young was activating--from Bill Clinton's mansion--a sequence of events
designed to land the potentially troublesome Reed in prison.

The instrument at hand was a plane owned by Reed.

On March 24, 1983, Reed's plane had been stolen from a repair shop in
Joplin, Missouri (Reed's home state). Prior to this, Reed says, Oliver North
had asked him to contribute this same plane to Project Donation, a scheme by
which individuals would allow their fully insured planes and boats to
"disappear" for the sake of counterrevolution in Nicaragua. Reed claims he
had refused. At all events, the plane was removed while Reed was out of
town. Reed duly reported the theft to his insurance company and received
compensation. He says that in 1985 North's people contacted him in Mena,
told him that his plane was being returned after having been in Central
America for two years and asked that he not report its return because they
might need to "borrow" it again. Reed consented. He left the plane at his
hangar in the North Little Rock Airport and left for Guadalajara soon
thereafter.

On October 8, 1987, Tommy Baker, a former Arkansas State Police officer and
longtime friend of Buddy Young, says he happened to be passing Reed's hangar
when a powerful gust of wind blew the door open, revealing a plane. Baker
says he thought the plane looked "suspicious" and so called his pal Young at
the Governor's mansion. Young later claimed in testimony that he called the
registration number on the plane into the National Crime Information Center
to see if a plane with that number had been stolen, found no record of this
and so instructed Baker to check if the plane's markings had been changed, a
common practice of plane thieves (also a routine practice at Mena and in
North's Project Donation). Baker established that they had been, and by
October 21 the two had turned the case over to the F.B.I.

Under scrutiny, that sequence, as set out by Baker and Young, did not stand
up. On October 5, three days before that fortuitous gust blew open the
hangar door, Young was phoning Reed's parents masquerading as an old friend
of their son, according to legal papers filed by Reed. Young had called in
the plane's correct registration number to the N.C.I.C.--so the center's
records show--on October 7, before Baker had, by his account, even set eyes
on the plane (and before Young had called in with the doctored number). That
same evening Young had called Joplin to inquire about the plane's original
disappearance. In June of 1988, Reed was indicted on mail fraud charges in
connection with his 1983 insurance claim on the plane.

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