*       Subject: P-2 
*       From: Louis P.
 

________________________________

 From Luigi DiFonzo's "St. Peter's Banker: 
Michele Sindona" (I referred to this incorrectly yesterday as "God's
Banker")

Freemasonry first appeared in Europe in the 
seventeenth century. The Masonic lodges as an 
organized group remained politically neutral; 
members, however, were bound by oath to fight for 
the abolition of censorship, for religious 
choice, freedom from arbitrary arrest and 
imprisonment without trial, and the destruction 
of authority that refused to grant representation.

Freemasons have throughout history been involved 
in revolutions. Voltaire and Diderot, writers who 
influenced the French Revolution, were both 
members of the order. Some historians have 
credited the Freemasons with the success of the 
Russian Revolution of 1917. The Masons have also 
been credited with, or blamed for, the Spanish 
civil war and the start of World War I (the 
assassination of Archduke Franz Ferdinand). The 
ideals behind Freemasonry were the foundation of 
the American Revolution: Benjamin Franklin, 
George Washington, Alexander Hamilton, Paul 
Revere, and John Paul Jones were all Masons. And 
under the direction of Grand Master Giuseppe 
Garibaldi, the Masonic Order played a leading 
role in the unification of Italy. Only in Italy 
have the Freemasons as a group been actively involved in politics.

During World War II a large number of Masons were 
jailed and tortured by Mussolini for opposing his 
dictatorship. Yet, for some unexplainable reason, 
the Masonic Order accepted Licio Gelli as a 
member. As a result, with the support of the 
Grande Oriente, the Anti-Fascist Commission 
cleared Gelli of war crimes with which the partisan commission had charged
him.

With the backing and support of the Masonic Order 
and the government of Argentina, Gelli soon 
prospered. He traveled frequently to Hungary, 
Rumania, and Libya to negotiate 
multimillion-dollar contracts for Argentina and 
for himself. Within a few years he had purchased 
several magnificent villas in northern Italy, 
Monaco, and Argentina, and he threw lavish 
parties to display his wealth. In Rome, however, 
Gelli operated secretly out of room 127 of the Excelsior Hotel.

In 1964, when the communists and other leftists 
were gaining influence in Italy, Michele 
Sindona's preaching of pro-Western philosophy 
roused Gelli's political beliefs. Eventually, as 
grand master of Propaganda Due, Licio Gelli 
declared himself "a lifelong anti-communist."

Propaganda Due originated in the early nineteenth 
century with the birth of the secret society 
known as the Carbonari. The lodges were similar 
to Masonic lodges. Carbonari membership however, 
included Freemasons, mafiosi, and military 
officers who were more serious about their 
political beliefs than other Masons. They opposed 
Napoleonic rule,- recruited members in Spain, 
Greece, France, and Russia; won constitutions in 
Spain and a few Italian states,- and led Greece in its fight for
independence.

The success of the Carbonari was due to the 
dedication of its individual members and to the 
initiation ceremony, which threatened "certain 
and violent death" for any member who violated 
the society's secrets. The presence of mafiosi 
among the Carbonari guaranteed that violators of 
omerta, the Sicilian code of silence, would meet death by mutilation.

As grand master of P-2, Licio Gelli turned the 
lodge into the most powerful, political, and 
violent secret organization in Italy. Important 
Italian generals, magistrates, and businessmen 
became members of P-2, which Gelli severed from 
the hierarchy of Freemasonry. According to a 
former U.S. intelligence officer who until 
recently was stationed in Italy where he became 
friendly with Gelli, P-2 under Gelli's command 
became "an underground state within a state."

Determined to destroy Italy's parliamentary 
system of government in order to form a 
presidential dictatorship, Gelli recruited 
members who swore allegiance to him rather than 
to the nation of Italy. A distinguished-looking 
man of medium height and build, with silver hair 
and a charismatic personality, Licio Gelli 
recruited powerful bankers, industrialists, 
generals and colonels of the Italian army, and 
agents of Italy's highly secret Service of 
Defense Information (SID). His greatest single 
recruiting victory, however, was the membership 
of Carmelo Spagnuolo, who was at the time chief 
public prosecutor in Milan and who later became 
president of a division of the Italian supreme court.

Gelli was not brilliant so much as shrewd and 
devious. He had money and power, but he realized 
that wealth and position meant little without the 
weapon of fear. Gelli believed that fear was the 
instrument by which real power could be 
masterfully employed, and he believed fear was 
most useful when cloaked in silence. So Grand 
Master Gelli divided members of P-2 into 
divisions and forbade them to disclose their membership.

Secret societies are illegal in Italy. 
Freemasonry is allowed to exist only if each 
lodge agrees to disclose the names of its 
members. Gelli, however, would not do this. His 
connections were strong enough and high enough 
that no one dared to challenge P-2's dark 
existence. Gelli had made it impossible for 
anyone outside the order to learn the identity of 
P-2 Masons, and even within P-2, members of one 
group could not learn the identity of any member 
of another group. As the only person to know 
every member's name, Licio Gelli had ensured his position and power.

He used contacts in government and business to 
gather secrets about members and nonmembers 
alike, and he used their dossiers to increase his 
wealth and influence. A leather folder containing 
details of embarrassing and criminal acts 
committed by an individual would be delivered to 
that person's house or office. A calling card 
that read simply "P-2" identified the sender. 
Contact would be made and a deal struck for 
either money or favors. By his consistent and 
ruthless use of blackmail, political favors, 
bribes, and the purchase of important government 
positions for members of the secret 
Mafia-Masonry-style society, Gelli, an Italian 
journalist says, "was king and pope. Many hated 
him for his bad character and fascist past, but no one dared cross him."

Like a public relations expert, Gelli manipulated 
people and situations. At parties he boasted of 
his friendship with judges, military leaders, and 
powerful businessmen like Michele Sindona. 
Gelli's activities, of course, did not go 
unnoticed. Italians began to refer to P-2 as "a 
state within the state." Rumors of pagan rituals 
filled the imagination of the public. Even some 
of Gelli's confidants called him "Naja Hannah" 
(King Cobra), and Naja Hannah was said to be a 
magician who cut through red tape and produced 
results. So, in traditional Italian style, 
nonmembers seeking promotions in government or 
business offered suitcases stuffed with lire or, 
if their position allowed, political favors. In 
Italy Propaganda Due exists, like the Mafia, as 
an accepted fact of life, because Italians have 
learned to treat corruption not as an evil but as 
an art. They believe not in the state but in the 
power of those who are feared - the creators of intrigue and chaos.

This conspiratorial chaos permeates every level 
of Italian society from the peasantry to the 
nobility, with an attitude that says, in effect, 
"To survive, one must have the protection of 
friends who have friends." Such a belief has fed 
the cancer of corruption, undermined the 
foundation of social ethics, and distorted the 
individual Italian's concept of morality. 
Desensitized to crime and scandal, Italians have 
come to the devastating- yet for them practical - 
conclusion that parties change faces but the 
system remains the same. What is truly important 
is not changing the system but instead simply 
making it work for oneself. A Mafia complex has 
spread throughout northern Italy, especially Rome 
and Milan, where political parties serve special 
interest groups like the Vatican by manipulating 
a degenerate system for personal gain.

In summary, as a result of the morbid realism 
that pervades Italy, beneath the structure of 
that nation's official government there exists 
another more potent government, which serves the 
special interests of its members and financial 
supporters. Still deeper below, another 
government operates in complete darkness. It has 
been called the Mafia, the High Mafia, and 
Propaganda Due. Italians have surrendered to it, 
some by watching without opposition, others by 
not caring, and still others by using it. So for 
Licio Gelli to have recruited important military 
and judicial figures, to have organized P-2 as a 
secret power, even as "a state within the state," 
may not have been such an extraordinary accomplishment.

Michele Sindona and Licio Gelli became allies. 
The web that they would weave would seriously 
threaten the economy of Italy and eventually 
bring about the collapse of Italy's fortieth 
government since World War II. Before that would 
happen, however, they would weave a network of 
deals that would include two attempted coups.

Yet their personal differences were extreme. 
Licio Gelli proudly fought for Mussolini; Sindona 
refused to wear the fascist uniform in school. 
Gelli was anti-Semitic; Sindona in 1973 raised $2 
million for Israel. Gelli believed in a 
dictatorship; Sindona wanted for Italy, he says, 
an American form of democracy. But they were both 
capitalists, they were both anti-communists and 
anti-leftists, and they both believed that some 
men, the truly gifted, were above the morals and 
laws that applied to the rest of society.

That Gelli wanted a dictatorship was not 
important to Sindona. By the time Gelli 
approached him, Michele had become hard, cunning, 
and scornful of the motives of the Italian 
government. That P-2 operated illegally was also 
not important to Sindona, because Italians, 
especially super-Italians, do not respect the 
law. All that was important was that P-2 was 
powerful and would create opportunity and protect capital.

In other words, Michele Sindona did not join 
forces with Licio Gelli because he was a valiant 
defender of democracy and human rights. Sindona 
was not a martyr. He became a P-2 Freemason for 
the clearest of all reasons, the very same reason 
for which men who are driven by success have always done things -for profit.

  



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