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Homeland Insecurity by Douglas Valentine


Part Five

The Turning Point

The take-over of the American Embassy in Tehran on 4 November 1979 propelled
Howard Bane and the Office on Terrorism into the limelight. Twenty-one years
later, the CIA is still reeling from the event, which saw all its files fall
into enemy hands, and every one of its agent networks exposed throughout the
region. This seminal event, which had an impact on the American public not
unlike that of 11 September, marked the beginning of the propaganda war
between the Great Satan and the Islamic fundamentalists, at the time
represented by Iran's Ayatollah Khomeni, and allowed Ronald Eagan to crush
Jimmy Carter in the 1980 presidential election.

In the wake of the Embassy take-over, President Carter ordered Howard Bane to
work with General "Shy" Meyer, Colonel Charlie Beckwith, and Delta Force, to
come up with a plan to rescue the 53 hostages. As Bane notes, the plan was
based on a covert action to obtain current intelligence on the status of the
hostages, including several top CIA officers. Bane needed this intelligence
information in order to know where to direct the black and gray propaganda
necessary to disguise the CIA's actual intentions. There was also a need to
train Delta Force to operate in the Iranian desert.

The required intelligence was obtained, but as is well known, the
government's first major counter-terror operation, the Desert One rescue
mission, failed to get off the ground. Sand clogged the aircraft and on 25
April 1980, eight soldiers were killed. To Ronald Reagan and George Bush's
delight, the hostage situation continued unabated for another six months, and
enabled them to characterize Jimmy Carter throughout the campaign as someone
who did not take security seriously.

Just as merrily George W. Bush capitalized on the 11 September catastrophe,
the Great Communicator shamelessly rode the Iranian hostage tragedy into the
White House. As in Chile, the secret to success was persuading the middle
class to support the cause of freedom. After defeating bumbling George Bush
(the CIA's preferred candidate) in the primary, Reagan repudiated Carter's
Human Rights crusade, and in the wake of the hostage crisis, declared a
totally disingenuous war against terrorism. The seizure of the embassy had
shaken the American public as never before, and Reagan played on that
infantile fear. Indeed, terror was the organizing principle in his campaign.
His avowed and central principle, written in stone, was of never negotiating
with terrorists, as Jimmy Carter was attempting to do, and of restoring
America to its rightful position as the most powerful and feared nation in
the world.

Meanwhile, according to eyewitness Ari Ben-Menasche, Reagan's campaign
manager, William J. Casey, had arranged for vice presidential candidate and
former CIA director George Bush to meet with Iranian officials in Paris on
the weekend of 18-19 October 1980. In exchange for holding the hostages
through the election, then releasing them, Reagan, Bush and Casey agreed to
sell weapons to Iran, which had been invaded in September 1980 by CIA asset
Saddam Hussein and Iraq.

The secret deal, called the October Surprise, allowed Reagan, Bush and Casey
to steal the presidency. The fact that the hostages were released on the day
of Reagan's inauguration highlighted the fact that a secret deal had been
made. But the American media had already been compromised by the National
Security elite's four-year old disinformation campaign, and under the Great
Communicator, the major TV networks and newspapers would become nothing more
than a mouthpiece for the Israeli Lobby and America's reactionary right wing.

Terrorism As Growth Industry

The final chapter in the history of the national security elite's campaign of
terror against the American people began with Reagan and his successful
efforts to destroy the Soviet Union. It was advanced through the presidencies
of George H. W. Bush, and the aberration called Bill Clinton, and has
achieved its apotheosis under George W. Bush.

Upon assuming office, Reagan declared that he would replace Carter's Human
rights crusade with an all-out war on terrorism, and to implement this policy
he appointed OSS veteran William Casey as Director of Central Intelligence.
Casey immediately reconstituted the SOD under Rudy Enders, wrapped
anti-terrorism in a veil of black and gray propaganda, and began mounting
terror operations worldwide through a hip pocket operation managed by a
secret team of counter-terror experts.

Many old Phoenix veterans staffed several key positions in the Reagan, Bush
and Casey regime. SOD chief Rudy Enders had managed the CIA's counter-terror
teams in Vietnam's III Corps in 1965-1966, and 1970-1972. On his second tour,
Enders worked under the direction of III Corps Regional Officer in Charge,
Donald Gregg. During the Reagan Administration, Gregg would serve as
Vice-President George H. W. Bush's national security advisor.

In Vietnam, Gregg, Enders, and Enders' deputy Felix Rodriguez, a crazed
anti-Castro Cuban associated with some of the CIA's most ruthless terrorists,
managed III Corps' Phoenix Program. In this capacity the trio developed what
they called the "Pink Team" plan for identifying, capturing, and killing
specific members of the Viet Cong Infrastructure.

In 1981, after a survey in Latin America, Enders assigned Rodriguez to El
Salvador specifically to implement an updated version of the Pink Plan
against the political leadership of the insurgency. After receiving approval
from Bush, through Greg, the strategy was applied uniformly throughout
Central America and resulted in the proliferation of death squads and the
formation of the world's largest narco-terrorist group, the Contras, with the
able assistance of Panama's Manuel Noriega, one of the CIA's most famous
assets ever. Veteran field hands from the Phoenix Program were re-hired by
the SOD and assigned to security forces and death squads in numerous nations
around the world. Everywhere they went they carried a field manual developed
by the U.S. Army Special Forces for use in the Phoenix Program.

Titled "Psychological Operations In Guerilla Warfare," the manual
specifically states that "Guerilla warfare is essentially a political war,"
and that "the human being should be considered the primary target." Once the
mind had been reached, the manual said, the "political animal" was defeated,
without necessarily receiving bullets.

"Guerrilla warfare is born and grows in the political environment; in the
constant combat to dominate that area of political mentality that is inherent
to all human beings and which collectively constitutes the "environment" in
which guerrilla warfare moves, and which is where precisely its victory or
failure is defined.

"This conception of guerrilla warfare as political war turns Psychological
Operations into the decisive factor. The target, then, is the minds of the
population, all the population: our troops, the enemy troops, and the
civilian population."

The essential element in these psychological operations was "implicit
terror," as applied through Armed Propaganda Teams, as developed in Vietnam.
When "implicit terror" failed to convince people to join the cause, the
explicit terror of torture and summary execution were applied.

Here it is wise to note that the soldiers being trained and assigned to the
Office of Homeland Security will ultimately perform the same "psywar"
function, of implicitly terrorizing the American public, through their
uniforms and arms, into submission. Suspected terrorists and their
sympathizers can expect to receive explicit terror.

Through a junta headed by Oliver North at the NSC, and a group of secret
agents in the Enterprise originally formed by Ed Wilson, and managed after
1983 (when Wilson was convicted of selling 20 tons of C-4 explosive in 1977
to Libya's Moammar Quadaffi) by retired Air Force General Richard Secord,
Casey used profits from the illegal sale of weapons to Iran, and the profits
from CIA-protected drug smuggling through Panama, to fund the Contra terror
campaign in Nicaragua.

To cover these illegal terror operations--and a separate, immense covert
action, which involved the recruitment and training of Moslem mercenaries,
including Osama bin Laden, to repel the 1980 Soviet invasion of Afghanistan,
and thus bleed the Soviet Union into oblivion--Casey penetrated the Office of
Public Diplomacy within the State Department. A totally illegal CIA domestic
operation, Casey's hijacking of the Office of Public Diplomacy enjoyed the
tactic approval of the Senate Intelligence Committee. Part of the reason for
this incredible oversight was the fact that CIA officer Robert Simmons was
staff director of the Senate Intelligence Committee. During the Vietnam War,
Simmons had advised a CIA Interrogation Center for 18 months in Phu Yen
Province. Today, unbelievably, he is now a Congressman from Connecticut.
Totally sympathetic to Casey's policy, Simmons was unable to provide any
information about illegal CIA covert actions, including the mining of
Nicaraguan harbors, to those Committee members who might have objected.
Thanks to Simmons and the Committee's chairman, Senator Barry Goldwater
(R-AZ), the Office of Public Diplomacy, under Otto Reich, had free reign to
inundate the media with black and gray propaganda, thus protecting all of
Casey's illegal activities.

"A staff report by the House Foreign Affairs Committee (September 7, 1988)
summarized various investigations of Mr. Reich's office and concluded that
"senior CIA officials with backgrounds in covert operations, as well as
military intelligence and psychological operations specialists from the
Department of Defense, were deeply involved in establishing and participating
in a domestic political and propaganda operation run through an obscure
bureau in the Department of State which reported directly to the National
Security Council rather than through the normal State Department channels.
Through irregular sole-source, no-bid contracts, S/LPD established and
maintained a private network of individuals and organizations whose
activities were coordinated with, and sometimes directed by, Col. Oliver
North as well as officials of the NSC and S/LPD. These private individuals
and organizations raised and spent funds for the purpose of influencing
Congressional votes and U.S. domestic news media. This network raised and
funneled money to off-shore bank accounts in the Cayman Islands or to the
secret Lake Resources bank account in Switzerland for disbursement at the
direction of Oliver North. Almost all of these activities were hidden from
public view and many of the key individuals involved were never questioned or
interviewed by the Iran/Contra Committees."" 11

The Office of Public Diplomacy was so successful in manipulating the media,
that it was able to convince the public that Reagan had not approved the
funding of the illegal Contras from profits from illegal secret arms sales to
Iran--even after he confessed to the crime, with a glistening Hollywood tear
in his eye, on national TV in November 1986. Likewise all Congressional
investigations into the Iran-Contra scandal were successfully subverted, and
George Bush was elected president in 1988, despite his integral role in what
was the most egregious violation of the Constitution in American history.
What amounted to a military coup went unpunished, due to the success of the
CIA's psychological warfare capabilities, and its near absolute control of
the major American media.

The current Bush Administration, incidentally, is considering nominating Otto
"Third" Reich as Assistant Secretary of State for Latin American Affairs.


Prelude To Disaster

While Casey initiated covert terror actions around the world and in America,
the Office of Terrorism was reorganized to serve an essentially clandestine
purpose. Casey thrived on "hip-pocket" operations and compartmentalization,
and as DCI he took a more active role managing specific operations than any
of his predecessors.

Thus, as a replacement for Howard Bane, Casey chose William Buckley, a
veteran CIA officer who'd spent much of his career undercover as an officer
in the U.S. Army Special Forces. Buckley served several tours in Vietnam,
managing counter-terror and counter-intelligence operations, and from 1969
until 1972, under Ted Shackley, he was the director of the CIA's national
counter-terror program in Vietnam.

In 1978 Buckley was assigned to Damascus, Syria, and in mid-1979 he trained
President of Egypt Anwar Sadat's bodyguards. Buckley was assigned to
Islamabad, Pakistan in 1979, and in November 1979 he became involved in
planning for the Iran Embassy hostage rescue operation. In February 1981 he
was assigned to train the SOD's own counter-terror team at Fort Bragg, and to
reorganize CIA's counter-terrorism office.

Buckley was profoundly influenced during his first tour in Vietnam, when he
saw a Buddhist monk immolate himself. Buckley was convinced, like rat-eater
Liddy, that Americans must become as fanatically self-sacrificing as their
suicidal enemies if they were to persevere. Apparently Casey shared this
philosophy, and when they met in March 1981, he and Buckley formed an
affinity. Buckley became Casey's close advisor, and they traveled together to
Saudi Arabia in April to pave the way for the construction of secret military
bases, now occupied by U.S. counter-terror forces arrayed against Al Qaeda,
and to obtain private funding for Casey's Contra terror campaign.12

The first step in this secret war of terror was the October 1981
assassination of Sadat by the bodyguards Buckley had trained. The
assassination nullified the Camp David Accords President Carter had worked so
hard to achieve. Israel was now free to target PLO bases in Lebanon, and in
May 1982, Israeli General Ariel Sharon invaded Lebanon, and, through his paid
assets in the Christian Phalange militia, organized one of the greatest
terror acts of all time--the massacre of hundreds of Palestinian men in the
Sabra and Shatila refugee camps.

Currently serving as the elected Prime Minister of Israel, the world's
greatest human rights abuser and second largest sponsor of state-terrorism,
Sharon may be indicted as war criminal for this despicable act, in the same
Belgian court that may try Nixon's ferocious National Security Advisor, Henry
Kissinger, for war crimes committed during the Chilean coup.

In August 1982 Buckley returned to CIA headquarters to revamp and coordinate
Reagan's anti-terrorism policy, through what was called the Domestic
Terrorism Group. According to author Mark Perry, "For six months Buckley and
the government officials hammered out a policy." The result was that the CIA
maintained responsibility for foreign counter-terror operations, while the
FBI acquired the domestic "internal security" terrorism account.

Under the direction of Attorney General Edwin Meese, the FBI went about its
internal security task with ideological fervor, harassing, discrediting, and
stifling each and every Peace group that sought to educate the public about
the CIA's human rights abuses. Citizens opposed to CIA death squads in
Guatemala and El Salvador fared the worst, because the Reagan Administration,
with the earnest assistance of its right wing supplicants in the media, was
eminently able to equate peace with an unpatriotic support for terrorism.

It was all a Big Lie, of course, but the national security elite is willing
to deceive the public for the greater good of its internal security. In the
case of Reagan's "freedom fighters," as he called the terrorist Contras in
Nicaragua, it was done under the rubric of counter-terrorism, to protect the
CIA's illegal activities from coming to light.

The Office of Homeland Security will undoubtedly serve a similar
disinformation function for the Bush Administration, although all pretenses
that the CIA is not involved in domestic counter-terrorism have been dropped.
The CIA has been "unleashed."

In so far as spying on U.S. citizens with suspected links to foreign
terrorists was an on-going, albeit top secret priority since Chaos, it was
impossible for the CIA not be involved in domestic counter-terror in 1981.
But in that na�ve era the myth needed to be maintained, and for that reason
Buckley suggested to Casey that the Domestic Terrorism Group be renamed the
International Anti-terrorism Group. "Buckley's plan," Perry said, "called for
a coordinated effort to combat security breaches under the leadership of the
NSC director, who'd be in charge of monitoring the agencies that were
responsible for domestic law enforcement."

Citing Pentagon officials, Perry says that the Domestic Terrorism Group
became a part of the Army's Intelligence Support Activity, and that Buckley's
plan for an independent CIA office disintegrated as a result. Casey
re-assigned Buckley as the CIA's chief of station in Beirut following the
March 1983 bombing of the American Embassy. Buckley arrived in June or July,
but failed to prevent the attack on the U.S. Marine Corps barracks, on 23
October 1983, that killed 241 Marines.

On 16 March 1984, Buckley was kidnapped by Hezbollah guerrillas, and after
being tortured for months, died in captivity in Tehran in June 1985, shortly
after a March 1985 car bomb, reportedly planted by the CIA or the Phalange
militia, and intended for terrorist suspect Hussein Fadallah, killed 80
Lebanese civilians. Hezbollah reportedly passed a copy of Buckley's 400-page
videotaped confession to Casey in May 1986.

Perry speculates that Buckley was part of secret, hip pocket operation into
Iran, to recruit members of Iran's junior officer corps. Be that as it may,
the Reagan, Bush, Casey reliance on covert actions had only worsened the
problem of terrorism, creating one disaster after another, and severely
escalating the cycle of violence. With Congress conducting a number of
official inquiries into CIA abuses, the time had come to take terror
operations out of escapading Bill Casey's hip pocket, and create a new office
within the CIA to manage the situation.

Homeland Insecurity Continued in Part Six:
The Counter-Terror Network

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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