-Caveat Lector-   <A HREF="http://www.ctrl.org/">
</A> -Cui Bono?-

from:
http://www.drugwar.com/setco.htm
Click Here: <A HREF="http://www.drugwar.com/setco.htm">http://www.drugwar.com/
setco.htm</A>
-----
-- All were close political allies of North's commanding officer,
Vice-President George Bush.--
-----
Drug War
Covert Money, Power & Policy

SETCO

Immediately on taking office, Reagan began the "deregulation" of the savings
and loan industry, allowing S&L's to offer any interest rate they wanted and
do anything with the money. Reagan's administration regularly approved
unqualified hoods for federally-insured bank ownership. Hood banks often
looted their entire cash reserves, lending them to their own front companies,
washing the money out the front companies through various transfer tactics,
and then declaring the front companies bankrupt, which in turn forced the
bank's collapse. The money was gone into hood hands, and the FDIC/FSLIC was
liable to reimburse depositors, to the tune of hundreds of billions of
taxpayer money - some estimates go as high as one trillion dollars - that's
one-seventh the entire annual GNP.

These cooperating hoods and businessmen, Marcello, Beebe, Renda, Mischer,
Lyon, Khashoggi, Murchison, Helliwell, Hernandez-Cartaya, Charles, Rebozo,
the Bushes, etc. were indistinguishable from the intelligence community and
from the Republican establishment, although there are certainly plenty of
Democrats on the list as well.

Economic fascism, corporate colonialism, is indeed threatened by properous,
empowered campesinos because they represent an economic model that could
easily spread throughout the third world. The little domino that finally
snuffed the drug-dealing, U.S.-run maniac Somoza, whose family controlled
Nicaragua from 1934 to 1979, was therefore viewed as a serious threat by the
Reagan administration. It could become a model for the entire region.


Immediately on assuming office, Reagan's CIA Director William Casey, OSS
veteran, mob partner and mob lawyer, Nixon's SEC chairman, went into action
against the Sandinistas. He arranged with his Cocaine Coup partners,
Argentine President-designate Gen. Roberto Viola, left, and Chief of Staff
General Alvaro Martínez, Gen. Suárez Mason's boss, to use veteran trainers
from their dirty war to remold the remnants of Somoza's National Guard. They
called themselves the Nicaraguan Democratic Force, the FDN, but the
Sandinistas' derisive nickname, "the Contras," was the one that stuck. This
effort was begun by CIA cutouts Videla of Argentina, right, and Stroessner of
Paraguay immediately on the fall of Somoza, a year before Reagan took office
in 1980, under Carter's orders.

In 1934, the elder Somoza, at the head of the U.S.-trained National Guard,
secured his power by assassinating the dashing Augusto Sandino, below, a
charismatic poet and mystical socialist revolutionary. Sandino had fought the
U.S. Marines and the puppet Nicaraguan government to a standstill in a
spectacular 7-year guerrilla war. He was assassinated under a flag of truce,
while peacefully negotiating a coalition government.


Gen. Smedley Butler, the legendary Marine sent to track down Sandino, was so
disgusted by the cruelty and slave-labor he encountered that he concluded
Sandino was right and intentionally failed to track him down. After his
Nicaraguan experience, Butler repeatedly insisted that the interests of the
corporations weren't worth the life of a single one of his boys.

"War is a Racket," wrote this marvelous old warrior. "Only a small 'inside'
group knows what it is about. It is conducted for the benefit of the very
few, at the expense of the very many. Out of war a few people make huge
fortunes….How many of these war millionaires shouldered a rifle?"  His small
book then goes on to excoriate, by name, the multinational corporations then
running Central American politics for their own advantage. Butler was
disgusted by the stealthy assassination of Sandino, a legitimately elected
populist democrat. That wasn't what he was fighting for.

Like Emiliano Zapata, right, and Joe Hill, of course, Augusto Sandino, left,
never really died. After they took power in July of 1979, the Sandinistas won
an award from the World Health Organization for the radical drop in the
infant mortality rate they engineered. Their budget stressed health care and
education, and they instituted an effective land reform program which enabled
their rural campesinos to become self-sufficient.


The Sandinistas turned the huge absentee-owned coffee, cotton and banana
plantations, export monocrop slave-labor factories, into diversified family
farms or community-owned cooperatives. Women with key roles in rural health
and vaccination programs were also encouraged to lead the rural literacy
programs. These were often organized around church Bible study groups.
It was these programs that President Carter wisely backed with $125 million
in aid. Carter's quid pro quo, which the Sandinistas were perfectly happy to
live with, was that they not ship arms to the rebels in El Salvador. Of
course, when the Reagan administration blocked Carter's funds and started
attacking Nicaraguan campesinos with an army of Somocista murderers, the deal
was off.

In 1985, Daniel Ortega, in response to questions put to him by Peruvian
writer Mario Vargas Llosa on behalf of Venezuelan President Jaime Lusinchi,
repeated what had always been the Sandinista position: "We're willing to send
home the Cubans, the Russians,the rest of the advisors. We're willing to stop
the movement of military aid, or any other kind of aid, through Nicaragua to
El Salvador, and we're willing to accept international verification. In
return, we're asking for only one thing: that they don't atack us, that the
United States stop arming and financing the gangs that kill our people, burn
our crops and force us to divert enormous human and economic resources into
war when we desperately need them for development."
But stopping Sandinista development was precisely the point. The Sandinistas
weren't building from a top down, IMF-defined production-for-export model,
they were building from the bottom up. It's the difference between a
Nicaragua that is an agricultural giant able to grow all its own food, and a
nation of serfs dependent on absentee-owned factories and plantations
producing for export. It's the difference between campesino-owned family
farms, and sweatshop slums peopled by ex-campesinos, who must trade their
miserable wages for cupfuls of imported U.S. grain. This is not a question of
capitalism vs. socialism, because independent family farms are capitalist
institutions. It's a question of a "national and independent capitalism vs.
feudalism," as Jacobo Arbenz put it - owners vs. sharecroppers.

Prosperous family farms, of course, generate buying power. But that buying
power isn't consumerist, it's tribal - spent on local goods and services. In
1983, the Inter-American Development Bank declared that the Sandinistas'
"noteworthy progress in the social sector" was "laying a solid foundation for
long-term socio-economic development." The World Bank called Nicaragua's
development under the Sandinistas "remarkable.... better than anywhere in the
world." That, of course, was before the massive U.S. warfare and economic
sanctions took their toll.

If Sandinista economic nationalism spread to neighboring countries, what
would become of the absentee landlords? As Nixon's Secretary of State Henry
Kissinger succinctly put it, "I don't see why we need to stand by and watch a
country go communist due to the irresponsibility of its own people."

The Contra staging areas, originally set up under Carter, were in Guatemala
and Honduras. Mario Sandoval Alarcón's MLN played the role of host in
Guatemala. In 1978 the President of Guatemala was the unelected General Romeo
Lucas García, former president Laugerud's defense minister. Lucas and
Sandoval were particular favorites of Reagan's constituency.

In December of 1979 a delegation from the American Security Council, led by
"retired" Generals John Singlaub and Daniel Graham - the one a very high
ranking CIA agent and the other, Graham, a former Director of the Defense
Intelligence Agency - visited Lucas in Guatemala City. They denounced Carter
for calling this mass-murderer a mass-murderer and cutting off military aid.
Lucas was promised that Reagan would resume military aid as soon as he took
office.
Singlaub and Graham were followed by the Young Americans for Freedom, the
Heritage Foundation, the Moral Majority and the Center for Strategic and
International Studies. Pat Robertson and Jerry Falwell prayed for "mercy
helicopters" for Lucas. The Guatemalan leader of this publicity campaign was
none other than Roberto Alejos Arzu, whose finca in Retalhuleu had been the
staging area for the Bay of Pigs invasion. The CIA's very own Vernon Walters,
who represented the interests of an oil company, Basic Resources, in
Guatemala, also made a point of stroking Lucas.

Reagan, of course, did resume both overt and covert military aid, from
Taiwan, Israel and Argentina, which was immediately put to use by Lucas in a
"pacification" plan designed by U.S. military experts. In May of 1982 the
Guatemalan Conference of Bishops, a very conservative group, declared that
"never in our history have such extremes been reached, with the
assassinations now falling into the category of genocide." These same Church
officials estimated that Lucas killed as many as 150,000 Guatemalans.

Obviously, the guerrillas gained many new adherents as Lucas resorted to
burning their highland forests, causing, like Saddam Hussein, massive,
irreversible environmental destruction. A destruction, oddly enough, almost
never mentioned in the American mass media, which prefers to fixate on
celebrity sexuality, plane crashes and wacko loners.

On Feb. 11, 1982, two months after President Reagan first formally authorized
covert CIA support for the Contras, Attorney General William French Smith, at
DCI Casey's request, released the CIA from its legal responsibility to report
narcotics law violations. Smith's letter to Casey was published as part of
CIA Inspector General Frederick Hitz' 1/29/98 report to Congress on
Contra-CIA drug connections. The letter was read into the Congressional
Record on 5/7/98 by L.A.'s enraged Rep. Maxine Waters, despite the CIA's
inisistence that the entire report was "classified." It is interesting that
Smith didn't release the CIA from any of its other responsibilites under
federal law - the requirement to report murder, Neutrality Act violations,
espionage, arson, etc. - but only the requirement to report narcotics law
violations.

A series of concomitant Executive Orders and National Security Decision
Directives, many of which have been declassified, reveal that Vice-President
Bush, the former DCI, had formal executive control of all Reagan
administration intelligence operations, and was, in fact, DCI Casey's
commanding officer. Casey's request for the narcotics reporting exemption,
then, as part of the initial administration planning for Contra operations,
indicates a premeditated conspiracy to do what the Reagan administration
actually did - operate a massive illegal drugs-for-arms network.

May 14, 1982: "National Security Decision Directive 3, Crisis Management,
establishes the Special Situation Group (SSG), chaired by the Vice President.
The SSG is charged...with formulating plans in anticipation of crises....
[Relevant agencies are to] provide the name of their CPPG [Crisis
Pre-Planning Group] representative to Oliver North, NSC staff....'' The memo
was signed "for the President" by Reagan's national security adviser, William
Clark, and declassified during the Iran-Contra hearings.

Later spin-offs of this structure, which cut "non-operational" State
Department people out of the loop, included the Vice President's Task Force
on Combatting Terrorism, and the Operations Sub-Group, composed of the same
people - Bush, Gregg, Clarridge, North, Poindexter, Allen, Oakley, Koch,
Moellering, Revell and others.

Their first crisis was not long in coming. On December 21, 1982, Congress
passed the Boland amendment to the Defense Appropriations Act: "None of the
funds provided in this Act may be used by the Central Intelligence Agency or
the Department of Defense to furnish military equipment, military training or
advice, or other support for military activities, to any group or individual
... for the purpose of overthrowing the government of Nicaragua.''

Mass murder in Guatemala, apparently, was not proscribed. The transparent
Lucas was replaced as President in late 1982 by Gen. Rios Montt, a graduate
of just about every counterinsurgency course offered by the U.S. military.
Although Rios Montt's "Plan Victoria" was simply a repeat of Lucas' highland
scorched earth policy, his line was smoother. This enabled the January 1984
Kissinger Commission to certify the great human rights improvement wrought by
this more subtle lunatic, so massive overt military aid was resumed.

Working with Guatemala's Sandoval, Nicaragua's Somoza and his Salvadoran
allies Cuellar and Santivañez, was Roberto D'Aubuisson, deputy chief of the
CIA-created and funded Salvadoran National Security Agency, ANSESAL.
D'Aubuisson used ANSESAL to form the Armed Forces of National Liberation -
War of Extermination, the FALANGE. D'Aubuisson's FALANGE spawned the White
Warriors Union, the Secret Anticommunist Army and other contract death
squads. Pursuant to his CIA-KMT training, D'Aubuisson gave his death squads a
political base by forming the party of the Army, the Nationalist Republican
Alliance, ARENA.

D'Aubuisson reacted to the October 1979 Salvadoran coup engineered by
reformist junior officers by activating his death squads. First he killed the
attorney general of the new pluralist government, Mario Zamora, brother of
FMLN leader Rubén Zamora. Then, in March 1980, D'Aubuisson went after his
next most dangerous critic, the Archbishop, who was shot through the heart
while giving mass. Archbishop Romero had insisted that the neighboring
Sandinistas were preoccupied with their own development and therefore were no
military threat to El Salvador.

In a famous letter sent just before his death, the Archbishop begged
President Carter not to aid ARENA's military. He said such aid would be used
to "sharpen injustice and repression against the people's organizations"
which were struggling "for respect for their most basic human rights."
Nicaragua's Sandinistas, said the Archbishop, seemed to be acting more like
Christians than Communists. The morality inherent in their economic model
reflected the true message of Christ, and therefore was a good economic model
for El Salvador. Salvadorans, added the Archbishop, were right to insist on
absolute freedom of speech and regular democratic elections. "You can be a
Communist," explained Roberto D'Aubuisson, "even if you personally don't
believe you are a Communist."

Ten days after the murder of the Archbishop, Roberto D'Aubuisson explained to
his American Republican supporters, in a meeting room of the U.S. House of
Representatives, that "In order to define the State Department policy, we
could use this axiom: who is a communist? Those who consciously or
unconsciously collaborate with the Soviet cause. We can ascertain that
present [Carter] State Department policy toward Central America has candidly
favored communist infiltration." That was, word for word, the line peddled at
the 1980 Buenos Aires meeting of the CIA's Confederación Anticomunista Latina,
 CAL, that D'Aubuisson would attend in September, in celebration of the
Bolivian Cocaine Coup.

Also attending the September 1980 CIA/CAL celebration was John Carbaugh, an
aide to Republican Senator Jesse Helms. Helms, a rabid red-baiting
segregationist in the 1950's, was an enthusiastic supporter of the fascists.
As a ranking member of the Senate Foreign Relations Committee, of course,
Helms knew all there was to know about the death squads, but that didn't stop
him from solemnly taking testimony from ARENA's distinguished killers.
Between 1980 and 1992 Helms helped funnel $6 billion into the Salvadoran
military.

Hobnobbing with Carbaugh at the CAL confab was Stefano delle Chiaie, Klaus
Barbie's top aide. Carbaugh had extensive personal contact with D'Aubuisson,
and was instrumental in packaging the ARENA publicity campaign in Washington.
Also attending the 1980 CAL meeting was Margo Carlisle, legislative aide to
Senator James McClure (R-ID) and staff director of the Republican Conference
of the U.S. Senate. Carbaugh and Carlisle hired Mackenzie-McCheyne to handle
ARENA's advertising, while Paul Weyrich taught ARENA operatives effective
campaign tactics.
In 1980 ARENA killed at least 10,000 Salvadorans, including quite a few
members of the new progressive junta, which collapsed under the terror. In
July of 1980 D'Aubuisson was fêted in Washington by the Heritage Foundation,
the Council for Inter-American Security, the American Security Council and
the American Legion. ARENA became, under Reagan, the very symbol of
democratic liberalism and the recipient of all the military hardware it could
absorb. When the going got too tough for the freedom fighters of ARENA, of
course, they could always count on American jets to drop high explosives and
napalm on El Salvador's desperate campesinos. The ranks of the FMLN, the
Marti Front for National Liberation, swelled, as whole villages were
incinerated.

In May, 1980, at the Sumpul River crossing, more than 600 unarmed men, women
and children were machine gunned to death by cooperating Salvadoran and
Honduran troops on either bank as they tried to flee Salvadoran territory
into Honduras. Little children, caught in the middle of the river, were cut
to ribbons.

In December of 1981, at the villages surrounding El Mozote in El Salvador,
more than 800 defenseless people were massacred, according to the Salvadoran
Catholic Church. In 1992, Tutela Legal, the legal arm of the Salvadoran
Church, hired the distinguished international experts of the Argentine
Forensic Anthropology Team to conduct excavations at El Mozote. In the ruins
of a single-room building attached to the village church, the team found 143
human skeletons, 131 of which were children under the age of 12. They had all
been machine-gunned to death by standard U.S. Army issue M-16 ammunition
manufactured at the Lake City Plant in Independence, Missouri. That was the
ammo used by the Atlacatl Batallion, which had been formed by experts from
the U.S. Army School of Special Forces in March of 1981, Barry McCaffrey's
outfit.

Aside from massacre by rifle fire, the Atlacatl Batallion and its clones
practiced rape, decapitation and disembowelment on a massive scale. By 1982,
600,000 Salvadorans were left homeless - and terrified enough to stop
demanding any political rights at all.

The CIA-Contra military plan that so upset Archbishop Romero was run by Gen.
McCaffrey and Col. Steele out of Milgroup at Ilopango in El Salvador.  It was
based on the same idea as the Bay of Pigs. The idea was to seize a patch of
Nicaraguan territory, 1500 square miles of uninhabited mountains in fact, and
force overt U.S. military intervention in support of "Free Nicaragua." But
even the CIA couldn't sell that one to the Joint Chiefs. They knew that an
overt U.S. invasion of Nicaragua would be a bloody nightmare. The Pentagon's
Rand Corporation estimated that the popular Sandinistas could bog down
100,000 U.S. troops almost indefinitely. That, of course, would completely
enrage all our Latin friends. Colombia, Mexico, Panama and Venezuela - the
Contadora group - were in fact quite sympathetic to the Sandinistas, traded
with them extensively, and violently opposed military intervention.

The Somocistas, at any rate, had so little popular support they couldn't hold
a mountaintop long enough to dig a deep latrine. They could hit, and they
could run. The CIA, and certainly the State Department, did what it could to
patch together a centrist coalition of Nicaraguans who weren't Somocistas,
but their coalition had no operational control of "their" military. 46 of the
48 top Contra leaders were CIA Somocistas, that is, former officers of
Somoza's National Guard. The other two, apparently, just liked killing. An
August 1985 incident is typical. When the Contras couldn't hold the town of
La Trinidad for more than five hours, the time is took Sandinista troops to
reach them, they beheaded quite a few townspeople by way of farewell.

The frustrated CIA then hit on the bright idea of blowing up international
shipping in Nicaragua's harbors with mines, a transparently illegal act of
international terrorism. In fact if Nicaragua had done that to the United
States, it would have constituted legal grounds for a declaration of war.
Placed in January and February of 1984, the mines, which were designed to be
non-lethal, sank a few fishing boats and punched holes in a few freighters,
but had no effect whatever on Nicaragua's trade. The U.S., however, found
itself facing a losing case in the World Court. And the Soviet Union was
provided with the pretext it needed to begin delivering Mi-25 Hind helicopter
gunships, the "flying tanks" Daniel Ortega was now convinced he needed.

A humiliated Congress, facing the outrage of all our allies, led by the
chairman of the Senate Select Intelligence Committee, Barry Goldwater, whose
advance consent was supposedly required for such an operation, ended the
entire Contra aid program. "The second Boland amendment" banned any further
consideration of Contra aid until March of 1985. Contra aid continued
unabated, however, since Congress couldn't find a way to end the illegal
cocaine, heroin, pot or arms trade.

The Honduran airline SETCO, according to the Kerry Subcommittee, "was the
principal company used by the Contras in Honduras to transport supplies and
personnel for the FDN…from 1983 through 1985….SETCO received funds for Contra
supply operations from the Contra accounts established by Oliver North."

SETCO was run by Juan Ramón Matta Ballesteros, an agent of the Mexican DFS
who had worked with the legendary Mexican-based CIA Cuban Alberto Sicilia
Falcón. Matta, a Honduran chemist, had helped Sicilia set up his Andean
cocaine connections. Matta was hunted as a major drug kingpin by the DEA
throughout the 70's. The DEA first arrested him in 1970 at Dulles Airport
with 54 pounds of cocaine, but that was in his small-time early days. When
Sicilia fell in 1976, Matta inherited much of his network, including a heroin
franchise from Guadalajara's great opium grower and heroin manufacturer
Miguel Angel Félix Gallardo and a cocaine distribution franchise from the
Medellín cartel. Matta, and his Guadalajara cartel partners, ran the "Mexican
trampoline" that bounced cocaine from Colombia into the U.S. They became the
business partners of Gen. Policarpo Paz García, and in 1978 financed the
Honduran "Cocaine Coup" that brought Paz into power. Both worked with Col.
Gustavo Álvarez Martínez, head of the Public Security Forces (FUSEP), the
secret police.

Both also worked with Álvarez' CIA-DIA contact, Maj. Gen. Robert Schweitzer,
a director of strategy for the Army's deputy chief of staff for operations.
Schweitzer had been engineering the use of Honduras as a Somocista base since
early 1980, a year before Reagan took office. Since Schweitzer promised these
ballsy entrepeneurs an avalanche of largesse from the U.S. military, they
volunteered to help him supply the Contras. Bush/Casey made Schweitzer an
advisor to the National Security Council.

A 1983 Customs Investigative Report stated that "SETCO stands for Servicios
Ejecutivos Turistas Commander and is headed by Juan Ramon Matta Ballesteros,
a class I DEA violator….SETCO aviation is a corporation formed by American
businessmen who are dealing with Ballesteros and are smuggling narcotics into
the United States."

So, armed with this intelligence, Lt. Col. Oliver North, under specific
orders, proceeded to set up the bank accounts through which SETCO would be
paid for services to the U.S. military. The July 9, 1984 entry in North's
diary, obligingly published by Senator Kerry, states, in Ollie's own hand,
"wanted aircraft to go to Bolivia to pick up paste, want aircraft to pick up
1,500 kilos." The July 12, 1985 entry reads, "$14 million to finance [arms]
Supermarket came from drugs." August 9, 1985:

 "Honduran DC-9 which is being used for runs out of New Orleans is probably
being used for drug runs into U.S." All told, Ollie referred to CIA drug
dealing in more than 250 entries.

When thinking about the credibility of people like Oliver North, it's always
a good rule to ponder how much human blood they have on their hands. Lotsa
blood, little credibility. Killing campesinos requires a deeply ingrained
moral dishonesty. It is interesting that the diagram found in North's White
House safe, outlining the Contra "private aid" network, shows many of the
same banks and foundations involved in the savings and loan debacle and also
indicted as drug money laundries. All were close political allies of North's
commanding officer, Vice-President George Bush.
-----
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
All My Relations.
Omnia Bona Bonis,
Adieu, Adios, Aloha.
Amen.
Roads End

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