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November 8, 2001

Homeland Insecurity by Douglas Valentine



Part Four



The Terrorism Account Goes Underground



As noted earlier, terrorism and counter-terrorism are the same thing, and as
Michael McClintock notes in Instruments of Statecraft, CIA instructors in the
early 1970s "trained students in making criminal terrorist devices and in
assassination methods." A four-week course took place at the Border Patrol
Academy in Los Fresnos, Texas, where students were given courses in terrorist
concepts, fabrication of terrorist devices, and assassination weapons. As
McClintock notes, the Los Fresnos "Bomb School" officials offered courses
"not in bomb disposal but in bomb making."

It is critically important to understand that members of the CIA's
paramilitary Special Operations Divisions are the people who provide this
instruction, and that they themselves are the world's leading experts in the
various tools of the terror trade.

The abolition of the Bomb School in 1974, however, did not deter the CIA's
terror experts, and they devised other methods of training foreign secret
policemen and paramilitaries to terrorize communist insurgents. Much of the
training took at the School of the Americas at Fort Benning, Georgia, or was
conducted by the SOD's stable of counter-terrorists, working undercover as
private consultants.

Nor did the CIA's unilateral terror operations cease with Nixon's
resignation, in utter disgrace, in August 1974, nor did it abate with the
ascension of America's first "unpresident" Gerald Ford. Not even a series of
Congressional investigations into CIA abuses, starting in 1974 and continuing
through 1977, could keep the CIA from making its appointed rounds. And it's
no coincidence that the current President's father, in one brief year,
oversaw one of the CIA's most horrendous terror campaigns.

CIA terror activities flourished from January 1976 until January 1977 under
DCI George H. W. Bush, with much of the terror taking place in Latin America,
through a network of proxy foreign intelligence service united under
Operation Condor (the CIA's version of Phoenix in South America) and
operating closely with several CIA-supported anti-Castro Cuban terrorist
groups, including CNM (Cuban Nationalist Movement), CORU (Coordination of
United Revolutionary Organizations) and Omega Seven. Two Cuban terrorists
with direct ties to the CIA, Luis Posada Carrilles and Dr. Orlando Bosch,
blew a Cuban plane out of the sky in October 1976, killing 73 people. But the
CIA never pursued either man, and neither was ever convicted of the crime. On
the contrary, the CIA protected them, because both were involved, through DCI
Bush, his Assistant Deputy Director of Operations, Ted Shackley, and the
Chilean secret service, DINA, in the 21 September 1976 assassination of
Chilean diplomat Orlando Letelier in downtown Washington, D.C. As in most
other terror incidents committed by the CIA's assets while Bush was DCI, that
crime too has gone unpunished.

The ITG continued to exist under DCI Bush, but only in an analytical
capacity, and Bush's anti-terrorism expert, Ted Shackley, managed actual
counter-terror operations out of his hip pocket. Having managed the CIA's
counter-terror and interrogation center programs in Vietnam, as chief of
station from 1969 through 1971, Shackley was well qualified for the
anti-terrorism job. He was aware of where the effort needed to be directed,
and terrorist training camps in Libya, Angola, and Iran ranked high on his
list of targets, along with established terrorist organizations in Europe,
Asia, and Latin America.

But Shackley and Bush were painfully aware that Gerald Ford was considered
illegitimate by the American public, and was destined to lose the 1976
elections to whatever candidate the Democrats threw at the Republicans. And
so in mid-1976 they began contracting the important work to mercenaries and
SOD operators who voluntarily retired or resigned. It was arranged for these
contractors to obtain employment in a few select foreign intelligence
services, and several proprietary oil equipment, shipping and computer
consulting companies established by veteran CIA agent, and notorious "rogue
elephant," Edwin P. Wilson. Having resigned from the CIA in 1971 to pursue
million dollar business ventures in several terrorist-infected nations around
the world, and having been fired from the Office of Naval Intelligence's
super secret Task Force 157 in April 1976, Wilson was the perfect deniable
"deep cover" agent.

Thus in mid-1976, at the direction of DCI Bush and ADDO Shackley, the secret
government's counter-terror apparatus, manifest as a private enterprise owned
and operated by "Death Merchant" Wilson and his unsavory associates
(including Shackley himself, CIA officer Tom Clines, Hussem Salem, and
perhaps, as a silent partner, Air Force General Richard Secord, in
EATSCO--the Egyptian American Transport and Services Company), began its slow
and steady descent off the CIA's organizational chart.

As a result of this shell game, little changed when President Jimmy Carter
named Admiral Stansfield Turner as his Director of Central Intelligence. In
response to negative publicity about the CIA's reign of terror under Bush,
and his right wing predecessors, and in response to Carter's policy of
stressing "Human Rights" over covert action, Turner drastically reduced the
SOD in size, firing 600 employees in what became known as the Halloween
Massacre of October 1977. Turner also scraped Air America, the CIA's private
air force, and named James Glerum, a former executive with Air America, as
Evan Parker's replacement as head of the SOD.

But Turner's purge merely earned Carter the same degree of hatred the
national security elite naturally felt toward Clinton, and thanks to the
off-the-shelf "Enterprise" established by Bush and Shackley, the purge failed
to curb CIA abuses. Holding their hatred close to their hearts, those CIA
terror experts still on the payroll burrowed deep within the labyrinth at
Langley headquarters, and began courting their right wing supporters in the
media, academia, private enterprise, and the Republican Party. To assure
Carter's defeat in the 1980 elections, they instructed their domestic assets
in the intricacies of political warfare--Phoenix-related skills such as
population control through psychological warfare, discrediting and
compromising one's political enemies through covert actions, the development
of political cadre within the officer corps, the placement of indoctrinated
military officers in control of civilian security forces like the OHS, and,
of course, selective terror and assassination.

Psychological operations were especially important in the covert political
war being waged by the right wing during the Carter Administration. In the
shadows of this propaganda war for the hearts and minds of the American
public, the CIA's privateers mounted covert actions below the radar of top
Carter Administration officials. They forged secret alliances with proxy
nations, such as Israel and Taiwan, which taught Latin American landowners
how to organize criminals into vigilante death squads, which then murdered
and terrorized labor leaders, Human Rights activists, and all other enemies
of the various oligarchies, including our own. To compensate for the
reduction in size of the SOD and the loss of the CIA's air force, the
military branches began beefing up their own terror capabilities. The Army
assembled Delta Force, the Air Force formed its own special operations unit,
and the Navy organized SEAL Team Six.

In these ways the national security elite was able to subvert Carter's Human
Rights policy, just as they were able to characterize Clinton as immoral and
unpatriotic, and establish the basis of public mistrust that would enable
them to drive Carter from office through a disingenuous political and
psychological warfare campaign in 1980. 9

The Office of Terrorism

This is an historical overview, and in order to fully inform potential
dissidents and subjects of homeland insecurity, it is necessary to pause and
go back in time, briefly.

By late 1977, when Howard Bane was assigned as chief of the CIA's new Office
of Terrorism, the threat of international terrorism had captured the
imagination of the world. Terror incidents had been increasing since the 1967
Six-Day War, when the Israeli Army, anticipating an attack by its neighbors,
occupied vast tracks of Palestinian territory. (The Six Day, notably,
occurred simultaneously with the birth of Phoenix and Chaos.) In response to
the Israeli land grab, Wadi Haddad formed the Popular Front of the
Palestinian Liberation Organization (which itself was formed in 1964).

Popular Front terrorists staged the world's first major terrorist act in
1968, hijacking an El Al 707 passenger aircraft en route from Rome to Tel
Aviv, and forcing it to land in Algiers. After a month of negotiations the
passengers were released unharmed. But no land was returned to the
Palestinians and instead, the Israelis started bombing Palestinian terrorist
training camps in Jordan. The cycle of violence escalated and on 6 September
1970, in an event that hauntingly resembled that of 11 September, Haddad
ordered the simultaneous hijacking of four airliners bound for New York. 10

In February 1972 a Popular Front team hijacked a Lufthansa airliner with 172
passengers, including Joseph Kennedy, son of the late Robert Kennedy. Again
there were negotiations, and a ransom was paid, and Kennedy and the other
hostages were released. But the policy of negotiating with terrorists began
to lose its appeal after Palestinian terrorists seized a group of Israeli
athletes and their coaches at the Munich Olympics. The situation ended with a
gun battle in which nine Israeli athletes and five terrorists were killed.

Meanwhile, more and more dissident groups began to adopt terror as a method
of waging political war. Chief among them were the PLO's Black September,
Germany's Baader-Meinhof gang, France's Action-Direct, and Italy's Red
Brigade. Carlos the Jackal became a famous terrorist for hire and held OPEC
hostage in 1976. By 1977 the notion of state-sponsored terrorism had also
emerged, and was attributed to Libya and Iraq, both of which were said to
have Soviet backing.

As a result, DCI Turner directed Howard Bane to organize the CIA against the
new threat of terrorism. But according to Bane, counter-terrorism was a "hot
potato" and a "low priority," and because of the seemingly endless
Congressional investigations into CIA abuses, Turner was "hung up" on the
definition of terror. He was insisting that CIA officers refer to
counter-insurgency as "low intensity warfare," and in his effort to polish up
the CIA's image, Turner renamed the ITG the Office of Terrorism.

Again, it was just a shell game, and the Bush-Shackley Enterprise continued
to operate off the reservation.

In the meantime, Bane moved into the Chaos office in Langley's basement, in
the room behind the vault door. An avid proponent of covert action, he'd
served as chief of the North Africa Division, and as chief of station at The
Hague prior to his return to headquarters in late 1977. He was nearing the
end of his career, and was expecting to be named head of a division, and he
approached his new assignment with all the energy of a man seeking to
enshrine his legacy.

As Bane describes it, the Chaos office was a windowless room as large as the
ground floor of a house, divided into cubicles. Ten to twelve little old
ladies running around in tennis shoes, all the operations were
compartmentalized, and there was a "vault mentality." Little was happening.
The acting chief was the ITG operations officer, and his job was mainly
following U.S. citizens overseas.

So Bane summoned everyone to a staff meeting and said, "Let's advertise
ourselves to divisions." He set up a reference system to service each of the
divisions, and each little old lady became an expert in regard to a
particular geographical area. Next Bane started meeting with his counterparts
at State, Treasury, the FBI, the Pentagon, the White House and the National
Security Agency. As the Office of Terrorism began to serve a visible
function, Bane was able to move it from the basement vault to a fourth floor
suite with windows. The office received new computers, and the old girls start
ed entering profiles of the world's new terrorists into it. Bane was awarded
an operations officer, and recruited several disgruntled CIA officers, who
began to replace the women as his liaison officers to the divisions. And he
began working closely with SOD chief Jim Glerum to beef up the operational
forces at his command.

Delta Force had been created by U.S. Army colonel Charles Beckwith in
response to the numerous, well-publicized terrorist incidents that occurred
in the 1970s. Delta, and later the Navy's elite counter-terrorist unit, SEAL
Team Six, were to serve as the CIA's front line forces in the nascent war
against terror. Within the context of the new strategy of low intensity
warfare, the Office of Terrorism and the anti-terror experts in the CIA's SOD
and Delta Force had adopted a new lexicon, in which anti-terrorism was the
term for broad policy, and counter-terrorism was used in regard to specific,
immediate actions.

Bane sought and acquired a bigger budget, and started improving and developing
 the government's formal technological counter-terror capabilities -- things
like silenced weapons and covert eavesdropping equipment for use in hostage
rescues. Bane also worked to obtain a fleet of black helicopters for use by
counter-terror units. His own original contribution was a Crisis Management
Training Program team, composed of a psychiatrist and a few case officers,
which advised U.S. and foreign law enforcement officers on how to negotiate
with, and outwit, terrorists.

After all this, Bane set up a two-man intelligence unit at Delta headquarters
at Fort Bragg, and hooked them up to his office computer. At this point Delta
became a "customer" of CIA intelligence. Bane's Office of Terrorism also sent
daily reports, which profiled known terrorists and their activities, to the
Defense Intelligence Agency and the FBI. Very quietly his unit began to
coordinate actual counter-terror operations. "Say someone in Frankfurt had
access to the Red Army," Bane explains. "Then Delta would send a team."

Bane's Office of Terrorism handled each incident on a case-by-case basis,
depending on whether or not it was defined as "international terrorism,"
meaning the terrorists crossed borders or had foreign support, or "domestic
terrorism," in which case the terrorists were operating within their own
country. If the incident related to domestic terrorism, the CIA's Office of
Terrorism could not get involved, unless specifically authorized through a
presidential executive order called a "finding."

The need for a "finding" was a nagging bureaucratic stumbling block, and as
an example, Bane cites the time Colombia's M19 terror group took 20 foreign
diplomats, including the American ambassador, hostage at a party at the
Dominican Embassy. Thinking the trans-national nature of the incident
qualified it as "international terror," Bane, with the approval of the State
Department's terrorism unit, launched a Delta operation in conjunction with
the CIA's new SOD chief, Rudy Enders. Bane provided intelligence on the
terrorists while Enders and his assistant, Burr Smith, provided Delta with
the equipment it needed to stage a rescue operation. Meanwhile the Crisis
Management Team assembled in Florida, and prepared to jump into Colombia.

But the operation came to a screeching halt when the CIA's Assistant Deputy
Director of Operations, John Stein, was forced to reveal the operation to
Turner's Deputy Director of Operations, John McMahon.

As Bane recalls, McMahon asked him, "Are you trying to send us all to jail?"
McMahon then put the operation on hold until Carter issued a finding. Bane
was forced to call his officers back to Langley, where they waited while 'the
lawyers" met with members of Carter's national Security Council staff. Only
after the lawyers gave their approval did Carter issue the required "finding."

In another situation Bane was not allowed to help mount a covert action to
rescue Italy's Prime Minister Aldo Moro, because Moro's Red Brigade captors
were Italian nationals, and were deemed to be operating domestically.

"Colby," Bane sighs, "felt that covert action should be equated with
intelligence. He said it was better than sending in Marines."

Homeland Insecurity Continued in Part Five:

The Turning Point

Douglas Valentine writes frequently for CounterPunch. He is the author of The
Phoenix Program, the only comprehensive account of the CIA's torture and
assassination operation in Vietnam, as well as TDY a chilling novel about the
CIA and the drug trade.
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