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

The Real Drug Lords
A brief history of CIA involvement in the Drug Trade
by William Blum

1947 to 1951, FRANCE

According to Alfred W. McCoy in The Politics of Heroin in Southeast Asia,
CIA arms, money, and disinformation enabled Corsican criminal
syndicates in Marseille to wrestle control of labor unions from the
Communist Party. The Corsicans gained political influence and control over
the docks -- ideal conditions for cementing a long-term partnership with
mafia drug distributors, which turned Marseille into the postwar heroin
capital of the Western world. Marseille's first heroin laboratories were
opened in 1951, only months after the Corsicans took over the waterfront.

Early 1950s, SOUTHEAST ASIA

The Nationalist Chinese army, organized by the CIA to wage war against
Communist China, became the opium barons of The Golden Triangle
(parts of Burma, Thailand and Laos), the world's largest source of opium
and heroin. Air America, the ClA's principal airline proprietary, flew the
drugs all over Southeast Asia. (See Christopher Robbins, Air America,
Avon Books, 1985, chapter 9.)

1950s to early 1970s, INDOCHINA

During U.S. military involvement in Laos and other parts of Indochina, Air
America flew opium and heroin throughout the area. Many Gl's in Vietnam
became addicts. A laboratory built at CIA headquarters in northern Laos
was used to refine heroin. After a decade of American military intervention,
Southeast Asia had become the source of 70 percent of the world's illicit
opium and the major supplier of raw materials for America's booming
heroin market.

1973-80, AUSTRALIA

The Nugan Hand Bank of Sydney was a CIA bank in all but name. Among
its officers were a network of US generals, admirals and CIA men,
including fommer CIA Director William Colby, who was also one of its
lawyers. With branches in Saudi Arabia, Europe, Southeast Asia, South
America and the U.S., Nugan Hand Bank financed drug trafficking, money
laundering and international arms dealings. In 1980, amidst several
mysterious deaths, the bank collapsed, $50 million in debt. (See Jonathan
Kwitny, The Crimes of Patriots: A True Tale of Dope, Dirty Money and the
CIA, W.W. Norton & Co., 1987.)

1970s and 1980s, PANAMA

For more than a decade, Panamanian strongman Manuel Noriega was a
highly paid CIA asset and collaborator, despite knowledge by U.S. drug
authorities as early as 1971 that the general was heavily involved in drug
trafficking and money laundering. Noriega facilitated "guns-for-drugs"
flights for the contras, providing protection and pilots, as well as safe
havens for drug cartel officials, and discreet banking facilities. U.S.
officials, including then-ClA Director William Webster and several DEA
officers, sent Noriega letters of praise for efforts to thwart drug trafficking
(albeit only against competitors of his Medellin Cartel patrons). The U.S.
government only turned against Noriega, invading Panama in December
1989 and kidnapping the general, once they discovered he was providing
intelligence and services to the Cubans and Sandinistas. Ironically drug
trafficking through Panama increased after the US invasion. (John Dinges,
Our Man in Panama, Random House, 1991; National Security Archive
Documentation Packet The Contras, Cocaine, and Covert Operations.)

1980s, CENTRAL AMERICA

The San Jose Mercury News series documents just one thread of the
interwoven operations linking the CIA, the contras and the cocaine cartels.
Obsessed with overthrowing the leftist Sandinista government in
Nicaragua, Reagan administration officials tolerated drug trafficking as
long as the traffickers gave support to the contras. In 1989, the Senate
Subcommittee on Terrorism, Narcotics, and International Operations (the
Kerry committee) concluded a three-year investigation by stating:

"There was substantial evidence of drug smuggling through the war zones
on the part of individual Contras, Contra suppliers, Contra pilots
mercenaries who worked with the Contras, and Contra supporters
throughout the region.... U.S. officials involved in Central America failed to
address the drug issue for fear of jeopardizing the war efforts against
Nicaragua.... In each case, one or another agency of the U.S. govemment
had information regarding the involvement either while it was occurring, or
immediately thereafter.... Senior U.S. policy makers were not immune to
the idea that drug money was a perfect solution to the Contras' funding
problems." (Drugs, Law Enforcement and Foreign Policy, a Report of the
Senate Committee on Foreign Relations, Subcommittee on Terrorism,
Narcotics and Intemational Operations, 1989)

In Costa Rica, which served as the "Southern Front" for the contras
(Honduras being the Northern Front), there were several different ClA-
contra networks involved in drug trafficking. In addition to those servicing
the Meneses-Blandon operation detailed by the Mercury News, and
Noriega's operation, there was CIA operative John Hull, whose farms along
Costa Rica's border with Nicaragua were the main staging area for the
contras. Hull and other ClA-connected contra supporters and pilots teamed
up with George Morales, a major Miami-based Colombian drug trafficker
who later admitted to giving $3 million in cash and several planes to contra
leaders. In 1989, after the Costa Rica government indicted Hull for drug
trafficking, a DEA-hired plane clandestinely and illegally flew the CIA
operative to Miami, via Haiti. The U.S. repeatedly thwarted Costa Rican
efforts to extradite Hull back to Costa Rica to stand trial.

Another Costa Rican-based drug ring involved a group of Cuban
Americans whom the CIA had hired as military trainers for the contras.
Many had long been involved with the CIA and drug trafficking They used
contra planes and a Costa Rican-based shrimp company, which laundered
money for the CIA, to move cocaine to the U.S.

Costa Rica was not the only route. Guatemala, whose military intelligence
service -- closely associated with the CIA -- harbored many drug traffickers,
according to the DEA, was another way station along the cocaine highway.
Additionally, the Medellin Cartel's Miami accountant, Ramon Milian
Rodriguez, testified that he funneled nearly $10 million to Nicaraguan
contras through long-time CIA operative Felix Rodriguez, who was based
at Ilopango Air Force Base in El Salvador.

The contras provided both protection and infrastructure (planes, pilots,
airstrips, warehouses, front companies and banks) to these ClA-linked
drug networks. At least four transport companies under investigation for
drug trafficking received US government contracts to carry non-lethal
supplies to the contras. Southern Air Transport, "formerly" ClA-owned, and
later under Pentagon contract, was involved in the drug running as well.
Cocaine-laden planes flew to Florida, Texas, Louisiana and other
locations, including several militarv bases Designated as 'Contra Craft,'
these shipments were not to be inspected. When some authority wasn't
clued in, and made an arrest, powerful strings were pulled on behalf of
dropping the case, acquittal, reduced sentence, or deportation.

1980s to early 1990s, AFGHANISTAN

ClA-supported Mujahedeen rebels engaged heavily in drug trafficking while
fighting against the Soviet-supported govemment and its plans to reform
the very backward Afghan society. The Agency's principal client was
Gulbuddin Hekmatyar, one of the leading druglords and a leading heroin
refiner. CIA supplied trucks and mules, which had carried arms into
Afghanistan, were used to transport opium to laboratories along the
Afghan/Pakistan border. The output provided up to one half of the heroin
used annually in the United States and three-quarters of that used in
Western Europe. U.S. officials admitted in 1990 that they had failed to
investigate or take action against the drug operation because of a desire
not to offend their Pakistani and Afghan allies. In 1993, an official of the
DEA called Afghanistan the new Colombia of the drug world.

Mid-1980s to early 199Os, HAITI

While working to keep key Haitian military and political leaders in power,
the CIA turned a blind eye to their clients' drug trafficking. In 1986, the
Agency added some more names to its payroll by creating a new Haitian
organization, the National Intelligence Service (SIN). SIN was purportedly
created to fight the cocaine trade, though SIN officers themselves engaged
in the trafficking, a trade aided and abetted by some of the Haitian military
and political leaders.

William Blum is author of
Killing Hope: U.S Military and CIA Interventions Since World War II
available from Common Courage Press,
P.O. Box 702, Monroe, Maine 04951, USA;
tel: (207) 525-0900; fax: (207) 525-3068

-----------------

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