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Maxine Waters Keeps CIA-Contra-Crack Ties On The Agenda

Need something to look forward to in the coming year in Congress besides
impeachment? California Rep. Maxine Waters is making sure that the
CIA-contra-crack issue stays on the legislative agenda. In the midst of
impeachment madness, Waters called on House Intelligence Committee
Chairman Porter Goss to hold investigative hearings into the CIA's
complicity with Contra drug traffickers. "While the House Judiciary
Committee continues to deliberate about the constitutional significance
of trying to hide a private, extramarital affair, the CIA recently
released a report that suggests further action against highest level
Reagan Administration officials should have been pursued," Waters said
in a statement. "This should be at the very top of the agenda for
legislative business when the House Intelligence Committee reconvenes in
the 106th Congress." Waters believes, as do many other observers, that
the findings of a CIA internal review into allegations of drug trade
involvement, "confirmed the CIA knew of Contra drug trafficking and
chose to continue to work with and support the drug traffickers on their
payroll." Waters called the CIA Inspector General's Report a "remarkable
reversal and admission of guilt by an agency that had always vehemently
denied any knowledge of or involvement with drug trafficking." "I was
not surprised that the CIA employees who were in the field during the
Contra war denied that they were supporting known drug traffickers when
interviewed by the Inspector General," Waters noted. "These same employe
es face potential criminal prosecution if found to have knowingly
supported drug traffickers in their singular pursuit of overthrowing the
Contras." "I was surprised at the number of sources cited in the
Inspector General's Report that confirm the CIA knew of and covered up
Contra drug trafficking because of the central role so many of these
Contra drug runners played in the anti-Sandinista effort. The following
is the text of the letter Rep. Waters sent to Porter Goss:

The Honorable Porter J. Goss
Chairman
Permanent Select Committee on Intelligence
H405 Capitol
Washington, DC 20515
November 30, 1998

Dear Chairman Goss:

As the House Permanent Select Intelligence Committee considers its
legislative business for the 106th Congress, I urge the Committee to
place the investigation into the allegations of U.S. intelligence
involvement with Contra drug trafficking at the top of its agenda.

I believe the dramatic new developments in this ongoing scandal make it
imperative that the House Intelligence Committee hold full public
hearings to be able to fully and adequately complete its investigation.
I ask you to set a date for the commencement of these hearings as soon
as possible after the start of the 106th Congress.

The facts detailed in Volume II of the CIA Inspector General's Report
suggest that further action against high level Reagan Administration
officials and CIA officials should have been pursued. The Select
Intelligence Committee should take immediate steps to pursue these new
revelations.

Remarkably, the declassified version of Volume II confirmed many of the
key allegations of CIA and Reagan Administration support for Contra drug
trafficking to the U.S. This is remarkable because of the long-standing
policy of the CIA to deny any involvement with or knowledge of drug
trafficking by the Contras and their supporters. In short, it is a
complete reversal of the CIA's stated position to the public, press, and
of course, Congress.

The Washington Post reported the new revelations on November 3 with the
headline "CIA Ignored Tips Alleging Contra Drug Links, Report Says,"
while the New York Times covered this damning report on October 10
stating "C.I.A. Said to Ignore Charges of Contra Drug Dealing in '80s."
A number of other national and regional news organizations ran stories
acknowledging the fact that the CIA's Inspector General confirmed the
CIA knew of Contra drug trafficking and chose to continue to work with
and support the drug traffickers on their payroll.

Extensive new evidence revealed

The declassified version of the Report released by the CIA Inspector
General described how the CIA knew, at the highest level, that the
Contra rebels intended to sell drugs in the United States to finance its
war efforts. The Report details the voluminous evidence that the CIA and
the Reagan Administration possessed regarding drug trafficking by CIA
assets, contractors and individual supporters involved in the Contra
movement.

This evidence included some 1,000 cables sent to CIA headquarters in
Langley alleging drug trafficking by at least 58 Contra leaders, 14
Contra pilots on the CIA payroll, CIA contractors and front companies,
and the terrorist organization that later formed the core of the FDN,
the leading Northern Front Contra organization. The Report states that
these cables and leads were almost entirely ignored by CIA headquarters
and the Reagan Administration in pursuit of their all-consuming goal of
overthrowing the Nicaraguan government by any means necessary.

Read Together - Reports Reveal Devastating Picture

A complete reading of the CIA's internal review, Volumes I and II, and
the Department of Justice's own recently released report confirms U.S.
government knowledge of and complicity with Contra drug trafficking to
the United States.

For example, at the same time the CIA was starting its official
involvement with the Contra rebels, a leading Contra faction, the Legion
of September 15, "had made a decision to engage in drug smuggling to the
United States in order to finance its anti-Sandinista operations." The
infamous Legion of September 15 group included CIA asset Enrique
Bermudez, the Contras' top military commander, and a number of other key
Contra military commanders.

Volume I of the IG's Report detailed the ties between Bermudez, Norwin
Meneses and Danilo Blandon, the drug kingpins that Gary Webb wrote about
in his Dark Alliance series. Volume I reported that Bermudez asked the
two drug kingpins to raise money and supplies for the FDN and assured
them their support was welcome because "the ends justify the means."

Volume II reported that the CIA already knew that the Legion had
completed "one drug shipment to Miami" by the time the CIA offered its
official support in September 1981. The declassified version of the
Report documents that the CIA also knew of the Legion's other exploits,
including "kidnapping, extortion and robbery to fund its operations" in
addition to the "bombing of Nicaraguan civilian airliners and airline
hijacking." And despite all this information, the CIA continued to work
with most of these CIA assets, violating existing law.

When both reports are read together, it is clear that the Contra
military commander's embrace of the drug kingpins Meneses and Blandon
was part of the ongoing drug trafficking efforts by the FDN, and its
precursor, the Legion of September 15, to raise funds for their military
efforts.

The Report also revealed the significance of a number of other
previously lesser known participants in the Contra drug operations.
The Report discussed the involvement of CIA agent Ivan Gomez in drug
money laundering. Volume II revealed how a CIA
Security/Counterintelligence section review of Gomez rejected his
application for career CIA officer employment because "he was unable to
[provide credible answers regarding drug trafficking]. Consequently,
[Gomez] was amicably terminated effective 31 March 1988." Volume II
detailed the findings of the CIA's interview with Gomez concluding the
interviewer "believes Gomez directly participated in illegal drug
transactions, concealed participation in illegal drug transactions, and
concealed information about involvement in illegal drug activity."

Unfortunately, the information of Gomez' drug trafficking was not
included in Volume I, despite the extensive discussion of Ivan Gomez in
"Volume I: The California Story." In Volume I, Carlos Cabezas stated
that Gomez was with the CIA, and that Gomez was at meetings with Cabezas
and other drug traffickers "to ensure that the profits from the cocaine
went to the Contras and not into someone's pocket." Volume II filled in
the blanks showing how Ivan Gomez was involved in drug money laundering
before and after drug trafficker Carlos Cabezas met Gomez to give him
drug money for the Contras. Volume II also unambiguously states that
Gomez was a CIA "agent" and "covert action asset."

In another example, Sebastian Pinel was identified as a "leader of one
counterrevolutionary group in Honduras" in a number of CIA cables to
Langley Headquarters. Pinel had previously been identified as one of the
sources of cocaine for the Carlos Cabezas/Julio Zavala cocaine ring at
the center of the San Francisco Frogman case. By identifying Pinel as
both a Los Angeles distributor of cocaine for Cabezas/Zavala, and a
leader of a Honduran Contra organization, Volume II adds more direct
evidence of Contra involvement in the Frogman drug smuggling case.

Manuel Porro Rubiales, identified in Volume II as a 15th of September
Legion leader and member of the FDN General Staff support unit, was
previously known to Federal law enforcement officials because he was
arrested for drug trafficking as part of the DEA's Operation Alligator
sweep in New Orleans in 1979. When he was arrested, Manuel Porro
identified Norwin Meneses as a supplier to his drug ring. The new
information in Volume II sheds light on how future Contra leaders were
involved in bringing drugs into the U.S. even before they became Contra
leaders.

1982 Memorandum of Understanding Shows Premeditation

As you are also aware, the Report describes the previously secret 1982
Memorandum of Understanding (MOU) between the CIA and the Department of
Justice that allowed drug trafficking by CIA assets, agents, and
contractors to go unreported to federal law enforcement agencies. In my
opinion, it provides documented evidence of the conscious effort by the
Attorney General and the Director of Central Intelligence to protect
their Contra warriors from being prosecuted for their widespread drug
trafficking.

Volume II detailed how effective the MOU was in protecting the
involvement of CIA assets in drug trafficking. Ivan Gomez' case was
reviewed by the CIA's Office of General Counsel (OGC) which detailed how
Gomez had received "$35,000 cash in a paper bag" and admitted that
"Gomez could be guilty as a principal, accessory after the fact, or of
conspiracy if he knew the money was part of a drug transaction."
But the CIA's General Counsel then explained that any charge of Gomez
trafficking drugs "is not a non-employee offense required to be reported
under the [MOU's] procedures ... Although Gomez ... has ... been an
independent contractor (for the CIA), he has never been an "employee' as
defined in the MOU]." As a result of this legal hairsplitting allowed by
the 1982 Memorandum of Understanding, the CIA never issued a referral to
the FBI or DoJ for Gomez' drug trafficking and money laundering. Volume
II also clearly states that no information relating to Gomez' possible
involvement in drug trafficking was ever provided to Congress by the
CIA.

The Intelligence Committee needs to identify and question every
individual that was part of developing and implementing this incredible
MOU. Justice demands that those responsible for this governmental
license to traffic drugs are held responsible for the damage to our
nation which this MOU allowed.

There are many CIA sources that remain anonymous and protected in these
Reports despite their possible involvement in drug trafficking. Many
unnamed sources are identified only as a CIA officer or CIA personnel
throughout Volume I and II. In addition, the CIA devoted entire sections
of Volume II to "A CIA Independent Contractor," "A Second CIA
Independent Contractor," and "A Third CIA Independent Contractor." These
CIA contractors were identified as drug traffickers, yet these drug
traffickers had their identities protected in the CIA's Report. Why?

It is my belief that the Committee must address the many questions of
Executive misconduct and probable criminal activity when full Committee
hearings commence. I believe it is particularly important to identify
the many unnamed sources of information that were discussed in the
declassified versions of the CIA's reports.

At the end of Volume II, the Inspector General of the CIA laid down a
challenge for legislators and law enforcement officials to continue the
investigation of the CIA's protection of Contra drug traffickers,
stating simply, "[t]his is grist for more work, if anyone wants to do
it." We must rise to meet his challenge in the 106th Congress. I call on
you, as Committee Chair, to ensure we meet this challenge when the 106th
Congress convenes.

Sincerely,
Maxine Waters
Member of Congress

Sources: "Rep. Waters Calls On Committee to Hold Hearings In 106th
Congress"
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