the fates of american presidents who challenged the deep ... · volume 12 | issue 43 | number 4 |...

14
The Asia-Pacific Journal | Japan Focus Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged the Deep State (1963-1980) アメリカの深層国家に抗した大統領の運 命(1963-1980) Peter Dale Scott In the last decade it has become more and more obvious that we have in America today what the journalists Dana Priest and William Arkin have called two governments: the one its citizens were familiar with, operated more or less in the open: the other a parallel top secret government whose parts had mushroomed in less than a decade into a gigantic, sprawling universe of its own, visible to only a carefully vetted cadre—and its entirety . . . visible only to God. 1 And in 2013, particularly after the military return to power in Egypt, more and more authors referred to this second level as America’s “deep state.” 2 Here for example is the Republican analyst Mike Lofgren: There is the visible government situated around the Mall in Washington, and then there is another, more shadowy, more indefinable government that is not explained in Civics 101 or observable to tourists at the White House or the Capitol. The former is traditional Washington partisan politics: the tip of the iceberg that a public watching C-SPAN sees daily and which is theoretically controllable via elections. The subsurface part of the iceberg I shall call the Deep State, which operates according to its own compass heading regardless of who is formally in power. 3 I believe that a significant shift in the relationship between public and deep state power occurred in the 1960s and 1970s, culminating in the Reagan Revolution of 1980. In this period five presidents sought to curtail the powers of the deep state. And as we shall see, the political careers of all five—Kennedy, Johnson, Nixon, Ford and Carter—were cut off in ways that were unusual. One president, Kennedy, was assassinated. Another, Nixon, was forced to resign. To some extent the interplay of these two forms of power and political organization is found in all societies. The two were defined by Hannah Arendt in the 1960s as “persuasion through arguments” versus “coercion by force.” Arendt, following Thucydides, traced these to the common Greek way of handling domestic affairs, which was persuasion (πείθειν) as well as the common way of handling foreign affairs, which was force and violence (βία)." 4 The two represent not just different techniques of government but different cultures and mindsets, in fundamental tension with each other. 5

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Page 1: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

The Asia-Pacific Journal | Japan Focus Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20 2014

1

The Fates of American Presidents Who Challenged the DeepState (1963-1980) アメリカの深層国家に抗した大統領の運命(1963-1980)

Peter Dale Scott

In the last decade it has become more andmore obvious that we have in America todaywhat the journalists Dana Priest and WilliamArkin have called

two governments the one itscitizens were familiar withoperated more or less in the openthe other a parallel top secretgovernment whose parts hadmushroomed in less than a decadeinto a gigantic sprawling universeof i ts own v is ible to only acarefully vetted cadremdashand itsentirety visible only to God1

And in 2013 particularly after the militaryreturn to power in Egypt more and moreauthors referred to this second level asAmericarsquos ldquodeep staterdquo2 Here for example isthe Republican analyst Mike Lofgren

There is the visible governmentsituated around the Mall inWashington and then there isanother more shadowy moreindefinable government that is notexp la ined in C iv ics 101 orobservable to tourists at the WhiteHouse or the Capitol The former istraditional Washington partisanpolitics the tip of the iceberg thata public watching C-SPAN seesdaily and which is theoreticallycontrollable via elections The

subsurface part of the iceberg Ishall call the Deep State whichoperates according to its owncompass heading regardless ofwho is formally in power3

I believe that a significant shift in therelationship between public and deep statepower occurred in the 1960s and 1970sculminating in the Reagan Revolution of 1980In this period five presidents sought to curtailthe powers of the deep state And as we shallsee the political careers of all fivemdashKennedyJohnson Nixon Ford and Cartermdashwere cut offin ways that were unusual One presidentKennedy was assassinated Another Nixonwas forced to resign

To some extent the interplay of these two formsof power and political organization is found inall societies The two were defined by HannahArendt in the 1960s as ldquopersuasion throughargumentsrdquo versus ldquocoercion by forcerdquo Arendtfollowing Thucydides traced these to thecommon Greek way of handling domesticaffairs which was persuasion (πείθειν) as wellas the common way of handling foreign affairswhich was force and violence (βία)4 The tworepresent not just different techniques ofgovernment but different cultures andmindsets in fundamental tension with eachother5

APJ | JF 12 | 43 | 4

2

H a n n a h A r e n d t S o u r c e(httpswwwgooglecomsearchq=22hannah+Arendt22ampclient=firefox-aamphs=4xgamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=RNNSVIuxMNafyATCsoGYAQampved=0CAkQ_AUoAgfacrc=_ampimgdii=_ampimgrc=_IXoain_r_CT4M253A3B4Iw7cnq7xoFmxM3Bhttp253A252F252Fwwwthenationcom252Fsites252Fdefault252Ffiles252Fhannah_arendt_ap_imgjpg3Bhttp253A252F252Fwwwthenationcom252Fblog252F177180252Fweek-nation-history-eight-decade)

This tension increases and predictably tipstoward violence if a well-organized opencommunity expands beyond its own bordersand is increasingly occupied with the businessof supervising an empire It is repeatedly thecase that progressive societies (like America)expand As their influence expands theirdemocratic institutions based at bottom uponpersuasive power among equals aresupplemented by new often secret institutionsof top-down violent power for the control ofalien populations abroad often speakingdifferent and unfamiliar languages The morethe society expands the more these institutionsof violent power encroach upon and supplantthe original democracy

As a result these nations also experience adeeper and deeper politics much of it a contestbetween these two types of power One specialfeature of American deep politics since WorldWar Two i s that much o f i t has beencharacterized by a series of conspiratorial deepevents emblematic of the ongoing conflict

between these two forms of power and theircorresponding mindsets One is theacknowledged public mindset of opennessegalitarianism and democracy The other is theglobal dominance mindset committed tomaintaining and expanding Americanhegemony In domestic policy we often analyzethe two cu l tures as l ibera l s versusconservatives in foreign policy doves versushawks (Yet American liberals when they reachpower such as Hillary Clinton and John Kerryhave also been deeply entwined in themilitarization of American politics and itsglobal expansion) But with the recentexpansion since 911 of extra-constitutionalagencies like the NSA it is time to supplementthese horizontal distinctions with a verticalone between those agencies constrained byconstitutional checks and balances (the publicstate) and those not so constrained (the deepstate) Although the deep state as we havedefined it has always existed its recent radicalexpansion has brought it into occasionalconspiratorial conflict with the public stateeven with the president

N a t i o n a l S e c u r i t y A g e n c y S o u r c e(httpswwwgooglecomsearchq=NSAampclient=firefo x - a amp h s = n K M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampbiw=1213ampbih=647ampsource=lnmsamptbm=ischampsa=Xampei=wtNSVPjuOYauyQSV5oGgCQampved=0CAcQ_AUoAgfacrc=_ampimgdii=_ampimgrc=Fc8cwbKfvkIE0M253A3BvAZW_wdUUCe8iM3B

APJ | JF 12 | 43 | 4

3

http253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252F8252F84252FNational_Security_Agency_headquarters252C_Fort_Meade252C_Marylandjpg3Bhttp253A252F252Fenwikipediaorg)

The tension between persuasive and violentpower has increased incrementally in recentUnited States history from the years afterWorld War Two through to September 112001 We have seen the emergence todominance of what used to be called themilitary-industrial complex and what in my2010 book I called the American war machineThis is a major change When Eisenhowerwarned against the military-industrial complexin 1961 the values institutions and resourcesthat comprised it were still subordinateelements in American society Today it not onlydominates both parties but is also financingthreats to both these parties from even furtherto the right A good measure of this change isthat liberal Republicans are as scarce in theRepublican Party today as GoldwaterRepublicans were scarce in that party back in1960

That change has been achieved partly bymoney but partly also with the assistance ofdeep events events such as the Kennedyassassination Watergate the 1980 OctoberSurprise Iran-Contra and 911 whichrepeatedly have involved law-breaking andorviolence have been mysterious to begin withand whose mystery has been compounded bysystematic falsifications in media and internalgovernment records6

In saying that these deep events havecontributed collectively to a major change inAmerican society I am not attributing them allto a single agent or ldquosecret teamrdquo Rather I seethem as flowing in part from the socio-dynamicprocesses of violent power itself powerassociated with and deployed in the service ofthe global expansion of American militarymight which (as history has shown manytimes) has the effect to transform both societies

with surplus power and the individualsexercising that power7 Insofar as these powerprocesses govern America without derivingfrom its constitution we can say that theyderive from the milieu of the American deepstate

In discussing the deep events of DallasWatergate Iran-Contra and 911 I will arguethat while the mysteries of these deep eventscannot at present be fully dispelled byhistorical analysis (given the tight lock onofficial documentation) analysis does point to apattern linking them In American WarMachine I wrote that

the historical succession of deepeventsmdashsuch as Dallas Watergateand 911mdashhas impacted more andmore profoundly on Americarsquosp o l i t i c a l s i t u a t i o n M o r especifically hellip major foreign warsare typically preceded by deepevents l ike the Tonkin Gulfincidents 911 or the 2001anthrax attacks This suggests thatwhat I call the war machine inWashington [the forces striving forglobal US dominance includingelements both inside and outsidegovernment both inside andoutside the United States] mayhave been behind them

The continuity between all these successivedeception plots suggests that there may be anunderlying source for all of them and that therepeated appearances of external attacks orthreats (from North Vietnam Nicaragua orIraq) may be false I will suggest that for atleast a half-century the conflict between thetwo mindsets has given rise to a series ofconspiratorial deep events emanating from thehidden recesses of the American war machineall designed to deceive and coerce theAmerican people so as to sustain or further

APJ | JF 12 | 43 | 4

4

military expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

Later I came to state this conclusion moreforcefully

Since 1959 v irtual ly a l l ofAmericarsquos major foreign wars havebeen wars 1) induced preemptivelyby the US war machine andor 2)d i sgu i sed as responses tounprovoked enemy aggressionwi th d isgu ises repeated lyengineered by deception deepevents involving in some wayelements of the global drugconnection 8

These deceptions were not designed to deceiveAmericarsquos enemies but first and foremost todeceive the American people to accept theunilateral initiation by America of illegal wars

The continuity between all these successivedeception plots suggests that the repeatedappearances of external attacks or threats(from North Vietnam Nicaragua or Iraq) haveall been false I will suggest that for at least ahalf-century the conflict between the twomindsets has given rise to a series ofconspiratorial deep events emanating from thehidden recesses of the American war machineall designed to deceive and coerce theAmerican people so as to sustain or furthermilitary expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

I will document this conflict between the two

mindsets in one way or another revealing howit underlies all the major deep events in recentAmerican history Dallas Tonkin GulfWatergate the 1980 Republican OctoberSurprise Iran-Contra and finally 911 Theseevents were needed to achieve Americanacceptance of both militarized domesticsecurity and successive preemptive foreignwars The neocons of the Project for the NewAmer ican Century PNAC v i r tua l lyacknowledged this when they wrote that theirprogram for American dominance was unlikelyto be adopted soon ldquoabsent some catastrophicand catalyzing eventndashndashlike a new PearlHarborrdquo9

Mil i tary and CIA Resentment o fPresidential Strategies

We can trace what has happened over fiftyyears through the dramatic change inpresidential attitudes toward the Soviet UnionKennedy Johnson and above all Nixon believedin deacutetente with the Soviet Union Startingunder Ford and Carter and climaxing withReagan elements in the United States set outto help destroy what Reagan called ldquothe evilempirerdquo Saudi Arabian wealth and influenceapproved of this change and may have been afactor in achieving it10

The last major achievement of the dove factionwas Kennedyrsquos peaceful resolution of theCuban Missile crisis in 1962 But the JointChiefs had been eager to engage with theSoviet Union and were furious that Kennedydenied them this chance Air Force ChiefGeneral Curtis LeMay ldquocalled the settlementlsquothe greatest defeat in our historyrsquo and urged aprompt invasionrdquo11 Earlier LeMay had calledKennedyrsquos blockade tactic ldquoalmost as bad asthe appeasement at Munichrdquo and hadthreatened to take his dissent public12

APJ | JF 12 | 43 | 4

5

C u r t i s L e M a y S o u r c e(httpswwwgooglecomsearchq=Curtis+Lemayampclient=firefox-aamphs=ONMamprls=orgmozi l la en-USofficialampchannel=fflbamptbm=ischampimgil=1VVVurd6b85ZWM253A253BA8M69Fxt3Z65xM253Bhttp25253A25252F25252Fwwwatomicheritageorg2 5 2 5 2 F p r o f i l e 2 5 2 5 2 F c u r t i s -lemayampsource=iuamppf=mampfir=1VVVurd6b85ZWM253A252CA8M69Fxt3Z65xM252C_ampusg=__drWNL7uO O c V 7 v b -vJeMqYhovY3g3Dampbiw=1213ampbih=647ampved=0CJ4BEMo3ampei=Y9RSVOfMKZGcygSEyYCABwfacrc=_ampimgdii=_ampimgrc=1VVVurd6b85ZWM253A3BA8M69Fxt3Z65xM3Bhttp253A252F252Fwwwatomicheritageorg252Fsites252Fdefault252Ffiles252Flemay252520one_0jpg3Bhttp253A252F252Fwwwatomicheritageorg252Fprofile252Fcurtis-lemay3B4243B504)

There are abundant corroborations for thisalarming standoff between the president andhis Joint Chiefs Daniel Ellsberg who worked inthe Pentagon in 1964 told David Talbot thatafter the Cuban Missile settlement ldquothere wasvirtually a coup atmosphere in Pentagon circles a mood of hatred and rage The atmospherewas poisonous poisonousrdquo13 Disagreementsover how vigorously to pursue the Vietnam War

later divided President Johnson from many ofhis generals split his party and finallypersuaded LBJ not to run for re-election

These resentments survived into the Nixon eraAdmiral Elmo R Zumwalt Jr came close toaccusing Nixon and Kissinger of treason andKissinger of being a Soviet sympathizer14 Abook co-authored by retired admiral ChesterWard and published in 1975 charged thatKissinger was not just a Soviet sympathizer buta conscious Soviet agent15 (With the rise underGeorge W Bush and Obama of neocons withaggressive agendas the Joint Chiefs havetended in contrast to play a more restrainingrole)16

We have to consider that it was no accidentthat deep events the Kennedy assassinationand Watergate cut off the presidencies of bothKennedy and Nixon both bitterly resented bytheir generals and also the only presidents notto serve full terms in the postwar era Lessconspicuously their successors Ford andCarter were also afflicted by deep divisionswithin their respective administrationsFollowing the wishes of Congress

Gerald Ford and Jimmy Cartercarried out the largest number ofrevisions to presidential directivessince Eisenhower carefullyrewriting each of the [COG]emergency documents aware ofchanges in the Cold War (and thecountry) since Ikersquos Time and therecent massive unlawfulness onthe part of the secret Services17

Not coincidentally each of them faced divisionsamong their supporters and they became thefirst and second incumbent presidents to bedefeated for reelection since Herbert Hoover in193218

The military figures who protested against

APJ | JF 12 | 43 | 4

6

presidential restraints on their proposals werenot alone in Washington there was also CIAresistance to presidential efforts to control theagency The most striking example is perhapsthe 1980 election campaign that launched theReagan Revolution Robert Parry hasdemonstrated that this election was precededby a number of illegal actions ndash climaxing in theRepublican October Surprise -- in which bothveterans and active employees of the deepstate ndash no longer the servant of the public statebut its master ndash played a significant role Theevents of the Republican October Surprise havebeen characterized -- by myself among others --as an escalated reprise of dirty tricks betweenRepublicans and Democrats19 It is closer to thetruth to see them as Robert Parry has done asin part a CIA revolt (in alliance with Israel)against Jimmy Carter and his house-cleaningCIA Director Stansfield Turner20

The antagonism between CIA operatives andthe White House did not begin with Carter Itwas so acute right after the Bay of Pigs and thefiring of CIA Director Dulles that Kennedy toldone of the highest officials of his Administrationthat he wanted to splinter the CIA in athousand pieces and scatter it to the windsrdquo21

In 1972 Nixon fired Helms after the Watergatebreak-in because he believed Helms ldquowas outto get himrdquo and he gave orders to Helmsrsquosreplacement James Schlesinger ldquoto turn theplace inside outrdquo22

Neither Kennedy nor Nixon finished theirterms let alone their intention to bring the CIAunder control But their successive firings ofDulles and Helms left a toxic resentment insideCIA especially after Nixonrsquos CIA DirectorJames Schlesinger then purged more that fivehundred analysts and more than one thousandpeople in all from the clandestine service23 CIAveteran Arabist Archibald Roosevelt who was asignificant player along with former CIADirector Bush in the October Surprise believedthat Nixonrsquos appointees as CIA Director ndash JamesSchlesinger and Will iam Colby ndash ldquohad

bothhellipbetrayed their office by pandering topoliticiansrdquo24

CIA resentment and concern was not justdirected against presidents The CIArsquosOperations Division was also determined tofight a number of limitations imposed on it inthe mid-1970s by the responses of aDemocratic Congress to the recommendationsof the Senate Select Committee chaired bySenator Frank Church As a result even beforeCarterrsquos election a number of the CIArsquos alliedintelligence services in France Egypt SaudiArabia Iran and Morocco had allied in the so-called Safari Club to serve as an alternativesource of funding and financing of covertoperations25 In this they used the resourcesand networks of the drug-laundering Bank ofCredit and Commerce International (BCCI) CIAassets like Adnan Khashoggi and BruceRappaport assisted by officially retired CIApersonnel like Miles Copeland and JerryTownsend were part of this global BCCInetwork Former Saudi intelligence chiefPrince Turki bin Faisal a key figure in theSafari Club once admitted candidly that theSafari Club operating at the level of the deepstate was expressly created to overcome theefforts of Carter and Congress to rein in theCIA26

But the efforts of former CIA officers to electReagan were only part of a larger effort toensure the defeat of Carter in 1980 As we shallsee an even more important factor in Carterrsquosdefeat was the prior manipulation of oil pricesby the US oi l majors to engineer anartif icially elevated oil price increase 2 7

The plight of Jimmy Carter in 1979-80epitomizes how weak a president can becomewhen he loses the mandate of heaven from theAmerican deep state First he expressed hisdetermination not to admit the deposed Shah ofIran into the United States knowing very wellthat this might result in the seizure of the USEmbassy in Tehran28 But soon thereafter

APJ | JF 12 | 43 | 4

7

Carter was coerced by the Rockefellers andtheir man in the White House ZbigniewBrzezinski to do just that29 (Carter in cavingin to Rockefellerrsquos demands asked ldquoWhat areyou guys going to recommend that we do whenthey take our embassy and hold our peoplehostagerdquo)30 In the remaining months of hispresidency his popularity was battered by thelong waits at gas stations and conveniencestores generated by a largely artificial gasshortage31 We can see Carter as a victim of thetop-down power of the deep state which wouldmean that Carter himself like Kennedy andNixon before him was not on top

Carterrsquos defeat by Reagan in 1980 ended twotumultuous decades in which one president(along with his brother) was assassinated thenext chose not to run for re-election the nextwas forced to resign and the two last despitetheir incumbencies failed to be re-elected Inevery case one way or another tensionsbetween the presidents and the deep statehelped terminate the careers of those in theWhite House

The Deep State Plots the 1980 Defeat ofJimmy Carter

R i c h a r d H e l m s S o u r c e(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-

USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003 B 1 5 9 )(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003B159)

The Safari Club was an alliance betweennational intelligence agencies that wished tocompensate for the CIArsquos retrenchment in thewake of President Carterrsquos election and SenatorChurchrsquos post-Watergate reforms

After Carter was elected the Safari Club allieditself with Richard Helms and TheodoreShackley against the more restrainedintelligence policies of Jimmy Carter accordingto Joseph Trento In Trentorsquos account thedismissal by William Colby in 1974 of CIAcounterintelligence chief James Angleton

combined with Watergate is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then US Ambassador toIran] and h is most t rustedo p e r a t i v e s o u t s i d e o fCongressional and even Agencypurview James Angleton saidbefore his death that ldquoShackleyand Helms hellip began working withoutsiders like Adham and SaudiArabia The tradit ional CIAanswering to the president was an

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 2: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

2

H a n n a h A r e n d t S o u r c e(httpswwwgooglecomsearchq=22hannah+Arendt22ampclient=firefox-aamphs=4xgamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=RNNSVIuxMNafyATCsoGYAQampved=0CAkQ_AUoAgfacrc=_ampimgdii=_ampimgrc=_IXoain_r_CT4M253A3B4Iw7cnq7xoFmxM3Bhttp253A252F252Fwwwthenationcom252Fsites252Fdefault252Ffiles252Fhannah_arendt_ap_imgjpg3Bhttp253A252F252Fwwwthenationcom252Fblog252F177180252Fweek-nation-history-eight-decade)

This tension increases and predictably tipstoward violence if a well-organized opencommunity expands beyond its own bordersand is increasingly occupied with the businessof supervising an empire It is repeatedly thecase that progressive societies (like America)expand As their influence expands theirdemocratic institutions based at bottom uponpersuasive power among equals aresupplemented by new often secret institutionsof top-down violent power for the control ofalien populations abroad often speakingdifferent and unfamiliar languages The morethe society expands the more these institutionsof violent power encroach upon and supplantthe original democracy

As a result these nations also experience adeeper and deeper politics much of it a contestbetween these two types of power One specialfeature of American deep politics since WorldWar Two i s that much o f i t has beencharacterized by a series of conspiratorial deepevents emblematic of the ongoing conflict

between these two forms of power and theircorresponding mindsets One is theacknowledged public mindset of opennessegalitarianism and democracy The other is theglobal dominance mindset committed tomaintaining and expanding Americanhegemony In domestic policy we often analyzethe two cu l tures as l ibera l s versusconservatives in foreign policy doves versushawks (Yet American liberals when they reachpower such as Hillary Clinton and John Kerryhave also been deeply entwined in themilitarization of American politics and itsglobal expansion) But with the recentexpansion since 911 of extra-constitutionalagencies like the NSA it is time to supplementthese horizontal distinctions with a verticalone between those agencies constrained byconstitutional checks and balances (the publicstate) and those not so constrained (the deepstate) Although the deep state as we havedefined it has always existed its recent radicalexpansion has brought it into occasionalconspiratorial conflict with the public stateeven with the president

N a t i o n a l S e c u r i t y A g e n c y S o u r c e(httpswwwgooglecomsearchq=NSAampclient=firefo x - a amp h s = n K M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampbiw=1213ampbih=647ampsource=lnmsamptbm=ischampsa=Xampei=wtNSVPjuOYauyQSV5oGgCQampved=0CAcQ_AUoAgfacrc=_ampimgdii=_ampimgrc=Fc8cwbKfvkIE0M253A3BvAZW_wdUUCe8iM3B

APJ | JF 12 | 43 | 4

3

http253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252F8252F84252FNational_Security_Agency_headquarters252C_Fort_Meade252C_Marylandjpg3Bhttp253A252F252Fenwikipediaorg)

The tension between persuasive and violentpower has increased incrementally in recentUnited States history from the years afterWorld War Two through to September 112001 We have seen the emergence todominance of what used to be called themilitary-industrial complex and what in my2010 book I called the American war machineThis is a major change When Eisenhowerwarned against the military-industrial complexin 1961 the values institutions and resourcesthat comprised it were still subordinateelements in American society Today it not onlydominates both parties but is also financingthreats to both these parties from even furtherto the right A good measure of this change isthat liberal Republicans are as scarce in theRepublican Party today as GoldwaterRepublicans were scarce in that party back in1960

That change has been achieved partly bymoney but partly also with the assistance ofdeep events events such as the Kennedyassassination Watergate the 1980 OctoberSurprise Iran-Contra and 911 whichrepeatedly have involved law-breaking andorviolence have been mysterious to begin withand whose mystery has been compounded bysystematic falsifications in media and internalgovernment records6

In saying that these deep events havecontributed collectively to a major change inAmerican society I am not attributing them allto a single agent or ldquosecret teamrdquo Rather I seethem as flowing in part from the socio-dynamicprocesses of violent power itself powerassociated with and deployed in the service ofthe global expansion of American militarymight which (as history has shown manytimes) has the effect to transform both societies

with surplus power and the individualsexercising that power7 Insofar as these powerprocesses govern America without derivingfrom its constitution we can say that theyderive from the milieu of the American deepstate

In discussing the deep events of DallasWatergate Iran-Contra and 911 I will arguethat while the mysteries of these deep eventscannot at present be fully dispelled byhistorical analysis (given the tight lock onofficial documentation) analysis does point to apattern linking them In American WarMachine I wrote that

the historical succession of deepeventsmdashsuch as Dallas Watergateand 911mdashhas impacted more andmore profoundly on Americarsquosp o l i t i c a l s i t u a t i o n M o r especifically hellip major foreign warsare typically preceded by deepevents l ike the Tonkin Gulfincidents 911 or the 2001anthrax attacks This suggests thatwhat I call the war machine inWashington [the forces striving forglobal US dominance includingelements both inside and outsidegovernment both inside andoutside the United States] mayhave been behind them

The continuity between all these successivedeception plots suggests that there may be anunderlying source for all of them and that therepeated appearances of external attacks orthreats (from North Vietnam Nicaragua orIraq) may be false I will suggest that for atleast a half-century the conflict between thetwo mindsets has given rise to a series ofconspiratorial deep events emanating from thehidden recesses of the American war machineall designed to deceive and coerce theAmerican people so as to sustain or further

APJ | JF 12 | 43 | 4

4

military expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

Later I came to state this conclusion moreforcefully

Since 1959 v irtual ly a l l ofAmericarsquos major foreign wars havebeen wars 1) induced preemptivelyby the US war machine andor 2)d i sgu i sed as responses tounprovoked enemy aggressionwi th d isgu ises repeated lyengineered by deception deepevents involving in some wayelements of the global drugconnection 8

These deceptions were not designed to deceiveAmericarsquos enemies but first and foremost todeceive the American people to accept theunilateral initiation by America of illegal wars

The continuity between all these successivedeception plots suggests that the repeatedappearances of external attacks or threats(from North Vietnam Nicaragua or Iraq) haveall been false I will suggest that for at least ahalf-century the conflict between the twomindsets has given rise to a series ofconspiratorial deep events emanating from thehidden recesses of the American war machineall designed to deceive and coerce theAmerican people so as to sustain or furthermilitary expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

I will document this conflict between the two

mindsets in one way or another revealing howit underlies all the major deep events in recentAmerican history Dallas Tonkin GulfWatergate the 1980 Republican OctoberSurprise Iran-Contra and finally 911 Theseevents were needed to achieve Americanacceptance of both militarized domesticsecurity and successive preemptive foreignwars The neocons of the Project for the NewAmer ican Century PNAC v i r tua l lyacknowledged this when they wrote that theirprogram for American dominance was unlikelyto be adopted soon ldquoabsent some catastrophicand catalyzing eventndashndashlike a new PearlHarborrdquo9

Mil i tary and CIA Resentment o fPresidential Strategies

We can trace what has happened over fiftyyears through the dramatic change inpresidential attitudes toward the Soviet UnionKennedy Johnson and above all Nixon believedin deacutetente with the Soviet Union Startingunder Ford and Carter and climaxing withReagan elements in the United States set outto help destroy what Reagan called ldquothe evilempirerdquo Saudi Arabian wealth and influenceapproved of this change and may have been afactor in achieving it10

The last major achievement of the dove factionwas Kennedyrsquos peaceful resolution of theCuban Missile crisis in 1962 But the JointChiefs had been eager to engage with theSoviet Union and were furious that Kennedydenied them this chance Air Force ChiefGeneral Curtis LeMay ldquocalled the settlementlsquothe greatest defeat in our historyrsquo and urged aprompt invasionrdquo11 Earlier LeMay had calledKennedyrsquos blockade tactic ldquoalmost as bad asthe appeasement at Munichrdquo and hadthreatened to take his dissent public12

APJ | JF 12 | 43 | 4

5

C u r t i s L e M a y S o u r c e(httpswwwgooglecomsearchq=Curtis+Lemayampclient=firefox-aamphs=ONMamprls=orgmozi l la en-USofficialampchannel=fflbamptbm=ischampimgil=1VVVurd6b85ZWM253A253BA8M69Fxt3Z65xM253Bhttp25253A25252F25252Fwwwatomicheritageorg2 5 2 5 2 F p r o f i l e 2 5 2 5 2 F c u r t i s -lemayampsource=iuamppf=mampfir=1VVVurd6b85ZWM253A252CA8M69Fxt3Z65xM252C_ampusg=__drWNL7uO O c V 7 v b -vJeMqYhovY3g3Dampbiw=1213ampbih=647ampved=0CJ4BEMo3ampei=Y9RSVOfMKZGcygSEyYCABwfacrc=_ampimgdii=_ampimgrc=1VVVurd6b85ZWM253A3BA8M69Fxt3Z65xM3Bhttp253A252F252Fwwwatomicheritageorg252Fsites252Fdefault252Ffiles252Flemay252520one_0jpg3Bhttp253A252F252Fwwwatomicheritageorg252Fprofile252Fcurtis-lemay3B4243B504)

There are abundant corroborations for thisalarming standoff between the president andhis Joint Chiefs Daniel Ellsberg who worked inthe Pentagon in 1964 told David Talbot thatafter the Cuban Missile settlement ldquothere wasvirtually a coup atmosphere in Pentagon circles a mood of hatred and rage The atmospherewas poisonous poisonousrdquo13 Disagreementsover how vigorously to pursue the Vietnam War

later divided President Johnson from many ofhis generals split his party and finallypersuaded LBJ not to run for re-election

These resentments survived into the Nixon eraAdmiral Elmo R Zumwalt Jr came close toaccusing Nixon and Kissinger of treason andKissinger of being a Soviet sympathizer14 Abook co-authored by retired admiral ChesterWard and published in 1975 charged thatKissinger was not just a Soviet sympathizer buta conscious Soviet agent15 (With the rise underGeorge W Bush and Obama of neocons withaggressive agendas the Joint Chiefs havetended in contrast to play a more restrainingrole)16

We have to consider that it was no accidentthat deep events the Kennedy assassinationand Watergate cut off the presidencies of bothKennedy and Nixon both bitterly resented bytheir generals and also the only presidents notto serve full terms in the postwar era Lessconspicuously their successors Ford andCarter were also afflicted by deep divisionswithin their respective administrationsFollowing the wishes of Congress

Gerald Ford and Jimmy Cartercarried out the largest number ofrevisions to presidential directivessince Eisenhower carefullyrewriting each of the [COG]emergency documents aware ofchanges in the Cold War (and thecountry) since Ikersquos Time and therecent massive unlawfulness onthe part of the secret Services17

Not coincidentally each of them faced divisionsamong their supporters and they became thefirst and second incumbent presidents to bedefeated for reelection since Herbert Hoover in193218

The military figures who protested against

APJ | JF 12 | 43 | 4

6

presidential restraints on their proposals werenot alone in Washington there was also CIAresistance to presidential efforts to control theagency The most striking example is perhapsthe 1980 election campaign that launched theReagan Revolution Robert Parry hasdemonstrated that this election was precededby a number of illegal actions ndash climaxing in theRepublican October Surprise -- in which bothveterans and active employees of the deepstate ndash no longer the servant of the public statebut its master ndash played a significant role Theevents of the Republican October Surprise havebeen characterized -- by myself among others --as an escalated reprise of dirty tricks betweenRepublicans and Democrats19 It is closer to thetruth to see them as Robert Parry has done asin part a CIA revolt (in alliance with Israel)against Jimmy Carter and his house-cleaningCIA Director Stansfield Turner20

The antagonism between CIA operatives andthe White House did not begin with Carter Itwas so acute right after the Bay of Pigs and thefiring of CIA Director Dulles that Kennedy toldone of the highest officials of his Administrationthat he wanted to splinter the CIA in athousand pieces and scatter it to the windsrdquo21

In 1972 Nixon fired Helms after the Watergatebreak-in because he believed Helms ldquowas outto get himrdquo and he gave orders to Helmsrsquosreplacement James Schlesinger ldquoto turn theplace inside outrdquo22

Neither Kennedy nor Nixon finished theirterms let alone their intention to bring the CIAunder control But their successive firings ofDulles and Helms left a toxic resentment insideCIA especially after Nixonrsquos CIA DirectorJames Schlesinger then purged more that fivehundred analysts and more than one thousandpeople in all from the clandestine service23 CIAveteran Arabist Archibald Roosevelt who was asignificant player along with former CIADirector Bush in the October Surprise believedthat Nixonrsquos appointees as CIA Director ndash JamesSchlesinger and Will iam Colby ndash ldquohad

bothhellipbetrayed their office by pandering topoliticiansrdquo24

CIA resentment and concern was not justdirected against presidents The CIArsquosOperations Division was also determined tofight a number of limitations imposed on it inthe mid-1970s by the responses of aDemocratic Congress to the recommendationsof the Senate Select Committee chaired bySenator Frank Church As a result even beforeCarterrsquos election a number of the CIArsquos alliedintelligence services in France Egypt SaudiArabia Iran and Morocco had allied in the so-called Safari Club to serve as an alternativesource of funding and financing of covertoperations25 In this they used the resourcesand networks of the drug-laundering Bank ofCredit and Commerce International (BCCI) CIAassets like Adnan Khashoggi and BruceRappaport assisted by officially retired CIApersonnel like Miles Copeland and JerryTownsend were part of this global BCCInetwork Former Saudi intelligence chiefPrince Turki bin Faisal a key figure in theSafari Club once admitted candidly that theSafari Club operating at the level of the deepstate was expressly created to overcome theefforts of Carter and Congress to rein in theCIA26

But the efforts of former CIA officers to electReagan were only part of a larger effort toensure the defeat of Carter in 1980 As we shallsee an even more important factor in Carterrsquosdefeat was the prior manipulation of oil pricesby the US oi l majors to engineer anartif icially elevated oil price increase 2 7

The plight of Jimmy Carter in 1979-80epitomizes how weak a president can becomewhen he loses the mandate of heaven from theAmerican deep state First he expressed hisdetermination not to admit the deposed Shah ofIran into the United States knowing very wellthat this might result in the seizure of the USEmbassy in Tehran28 But soon thereafter

APJ | JF 12 | 43 | 4

7

Carter was coerced by the Rockefellers andtheir man in the White House ZbigniewBrzezinski to do just that29 (Carter in cavingin to Rockefellerrsquos demands asked ldquoWhat areyou guys going to recommend that we do whenthey take our embassy and hold our peoplehostagerdquo)30 In the remaining months of hispresidency his popularity was battered by thelong waits at gas stations and conveniencestores generated by a largely artificial gasshortage31 We can see Carter as a victim of thetop-down power of the deep state which wouldmean that Carter himself like Kennedy andNixon before him was not on top

Carterrsquos defeat by Reagan in 1980 ended twotumultuous decades in which one president(along with his brother) was assassinated thenext chose not to run for re-election the nextwas forced to resign and the two last despitetheir incumbencies failed to be re-elected Inevery case one way or another tensionsbetween the presidents and the deep statehelped terminate the careers of those in theWhite House

The Deep State Plots the 1980 Defeat ofJimmy Carter

R i c h a r d H e l m s S o u r c e(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-

USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003 B 1 5 9 )(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003B159)

The Safari Club was an alliance betweennational intelligence agencies that wished tocompensate for the CIArsquos retrenchment in thewake of President Carterrsquos election and SenatorChurchrsquos post-Watergate reforms

After Carter was elected the Safari Club allieditself with Richard Helms and TheodoreShackley against the more restrainedintelligence policies of Jimmy Carter accordingto Joseph Trento In Trentorsquos account thedismissal by William Colby in 1974 of CIAcounterintelligence chief James Angleton

combined with Watergate is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then US Ambassador toIran] and h is most t rustedo p e r a t i v e s o u t s i d e o fCongressional and even Agencypurview James Angleton saidbefore his death that ldquoShackleyand Helms hellip began working withoutsiders like Adham and SaudiArabia The tradit ional CIAanswering to the president was an

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 3: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

3

http253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252F8252F84252FNational_Security_Agency_headquarters252C_Fort_Meade252C_Marylandjpg3Bhttp253A252F252Fenwikipediaorg)

The tension between persuasive and violentpower has increased incrementally in recentUnited States history from the years afterWorld War Two through to September 112001 We have seen the emergence todominance of what used to be called themilitary-industrial complex and what in my2010 book I called the American war machineThis is a major change When Eisenhowerwarned against the military-industrial complexin 1961 the values institutions and resourcesthat comprised it were still subordinateelements in American society Today it not onlydominates both parties but is also financingthreats to both these parties from even furtherto the right A good measure of this change isthat liberal Republicans are as scarce in theRepublican Party today as GoldwaterRepublicans were scarce in that party back in1960

That change has been achieved partly bymoney but partly also with the assistance ofdeep events events such as the Kennedyassassination Watergate the 1980 OctoberSurprise Iran-Contra and 911 whichrepeatedly have involved law-breaking andorviolence have been mysterious to begin withand whose mystery has been compounded bysystematic falsifications in media and internalgovernment records6

In saying that these deep events havecontributed collectively to a major change inAmerican society I am not attributing them allto a single agent or ldquosecret teamrdquo Rather I seethem as flowing in part from the socio-dynamicprocesses of violent power itself powerassociated with and deployed in the service ofthe global expansion of American militarymight which (as history has shown manytimes) has the effect to transform both societies

with surplus power and the individualsexercising that power7 Insofar as these powerprocesses govern America without derivingfrom its constitution we can say that theyderive from the milieu of the American deepstate

In discussing the deep events of DallasWatergate Iran-Contra and 911 I will arguethat while the mysteries of these deep eventscannot at present be fully dispelled byhistorical analysis (given the tight lock onofficial documentation) analysis does point to apattern linking them In American WarMachine I wrote that

the historical succession of deepeventsmdashsuch as Dallas Watergateand 911mdashhas impacted more andmore profoundly on Americarsquosp o l i t i c a l s i t u a t i o n M o r especifically hellip major foreign warsare typically preceded by deepevents l ike the Tonkin Gulfincidents 911 or the 2001anthrax attacks This suggests thatwhat I call the war machine inWashington [the forces striving forglobal US dominance includingelements both inside and outsidegovernment both inside andoutside the United States] mayhave been behind them

The continuity between all these successivedeception plots suggests that there may be anunderlying source for all of them and that therepeated appearances of external attacks orthreats (from North Vietnam Nicaragua orIraq) may be false I will suggest that for atleast a half-century the conflict between thetwo mindsets has given rise to a series ofconspiratorial deep events emanating from thehidden recesses of the American war machineall designed to deceive and coerce theAmerican people so as to sustain or further

APJ | JF 12 | 43 | 4

4

military expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

Later I came to state this conclusion moreforcefully

Since 1959 v irtual ly a l l ofAmericarsquos major foreign wars havebeen wars 1) induced preemptivelyby the US war machine andor 2)d i sgu i sed as responses tounprovoked enemy aggressionwi th d isgu ises repeated lyengineered by deception deepevents involving in some wayelements of the global drugconnection 8

These deceptions were not designed to deceiveAmericarsquos enemies but first and foremost todeceive the American people to accept theunilateral initiation by America of illegal wars

The continuity between all these successivedeception plots suggests that the repeatedappearances of external attacks or threats(from North Vietnam Nicaragua or Iraq) haveall been false I will suggest that for at least ahalf-century the conflict between the twomindsets has given rise to a series ofconspiratorial deep events emanating from thehidden recesses of the American war machineall designed to deceive and coerce theAmerican people so as to sustain or furthermilitary expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

I will document this conflict between the two

mindsets in one way or another revealing howit underlies all the major deep events in recentAmerican history Dallas Tonkin GulfWatergate the 1980 Republican OctoberSurprise Iran-Contra and finally 911 Theseevents were needed to achieve Americanacceptance of both militarized domesticsecurity and successive preemptive foreignwars The neocons of the Project for the NewAmer ican Century PNAC v i r tua l lyacknowledged this when they wrote that theirprogram for American dominance was unlikelyto be adopted soon ldquoabsent some catastrophicand catalyzing eventndashndashlike a new PearlHarborrdquo9

Mil i tary and CIA Resentment o fPresidential Strategies

We can trace what has happened over fiftyyears through the dramatic change inpresidential attitudes toward the Soviet UnionKennedy Johnson and above all Nixon believedin deacutetente with the Soviet Union Startingunder Ford and Carter and climaxing withReagan elements in the United States set outto help destroy what Reagan called ldquothe evilempirerdquo Saudi Arabian wealth and influenceapproved of this change and may have been afactor in achieving it10

The last major achievement of the dove factionwas Kennedyrsquos peaceful resolution of theCuban Missile crisis in 1962 But the JointChiefs had been eager to engage with theSoviet Union and were furious that Kennedydenied them this chance Air Force ChiefGeneral Curtis LeMay ldquocalled the settlementlsquothe greatest defeat in our historyrsquo and urged aprompt invasionrdquo11 Earlier LeMay had calledKennedyrsquos blockade tactic ldquoalmost as bad asthe appeasement at Munichrdquo and hadthreatened to take his dissent public12

APJ | JF 12 | 43 | 4

5

C u r t i s L e M a y S o u r c e(httpswwwgooglecomsearchq=Curtis+Lemayampclient=firefox-aamphs=ONMamprls=orgmozi l la en-USofficialampchannel=fflbamptbm=ischampimgil=1VVVurd6b85ZWM253A253BA8M69Fxt3Z65xM253Bhttp25253A25252F25252Fwwwatomicheritageorg2 5 2 5 2 F p r o f i l e 2 5 2 5 2 F c u r t i s -lemayampsource=iuamppf=mampfir=1VVVurd6b85ZWM253A252CA8M69Fxt3Z65xM252C_ampusg=__drWNL7uO O c V 7 v b -vJeMqYhovY3g3Dampbiw=1213ampbih=647ampved=0CJ4BEMo3ampei=Y9RSVOfMKZGcygSEyYCABwfacrc=_ampimgdii=_ampimgrc=1VVVurd6b85ZWM253A3BA8M69Fxt3Z65xM3Bhttp253A252F252Fwwwatomicheritageorg252Fsites252Fdefault252Ffiles252Flemay252520one_0jpg3Bhttp253A252F252Fwwwatomicheritageorg252Fprofile252Fcurtis-lemay3B4243B504)

There are abundant corroborations for thisalarming standoff between the president andhis Joint Chiefs Daniel Ellsberg who worked inthe Pentagon in 1964 told David Talbot thatafter the Cuban Missile settlement ldquothere wasvirtually a coup atmosphere in Pentagon circles a mood of hatred and rage The atmospherewas poisonous poisonousrdquo13 Disagreementsover how vigorously to pursue the Vietnam War

later divided President Johnson from many ofhis generals split his party and finallypersuaded LBJ not to run for re-election

These resentments survived into the Nixon eraAdmiral Elmo R Zumwalt Jr came close toaccusing Nixon and Kissinger of treason andKissinger of being a Soviet sympathizer14 Abook co-authored by retired admiral ChesterWard and published in 1975 charged thatKissinger was not just a Soviet sympathizer buta conscious Soviet agent15 (With the rise underGeorge W Bush and Obama of neocons withaggressive agendas the Joint Chiefs havetended in contrast to play a more restrainingrole)16

We have to consider that it was no accidentthat deep events the Kennedy assassinationand Watergate cut off the presidencies of bothKennedy and Nixon both bitterly resented bytheir generals and also the only presidents notto serve full terms in the postwar era Lessconspicuously their successors Ford andCarter were also afflicted by deep divisionswithin their respective administrationsFollowing the wishes of Congress

Gerald Ford and Jimmy Cartercarried out the largest number ofrevisions to presidential directivessince Eisenhower carefullyrewriting each of the [COG]emergency documents aware ofchanges in the Cold War (and thecountry) since Ikersquos Time and therecent massive unlawfulness onthe part of the secret Services17

Not coincidentally each of them faced divisionsamong their supporters and they became thefirst and second incumbent presidents to bedefeated for reelection since Herbert Hoover in193218

The military figures who protested against

APJ | JF 12 | 43 | 4

6

presidential restraints on their proposals werenot alone in Washington there was also CIAresistance to presidential efforts to control theagency The most striking example is perhapsthe 1980 election campaign that launched theReagan Revolution Robert Parry hasdemonstrated that this election was precededby a number of illegal actions ndash climaxing in theRepublican October Surprise -- in which bothveterans and active employees of the deepstate ndash no longer the servant of the public statebut its master ndash played a significant role Theevents of the Republican October Surprise havebeen characterized -- by myself among others --as an escalated reprise of dirty tricks betweenRepublicans and Democrats19 It is closer to thetruth to see them as Robert Parry has done asin part a CIA revolt (in alliance with Israel)against Jimmy Carter and his house-cleaningCIA Director Stansfield Turner20

The antagonism between CIA operatives andthe White House did not begin with Carter Itwas so acute right after the Bay of Pigs and thefiring of CIA Director Dulles that Kennedy toldone of the highest officials of his Administrationthat he wanted to splinter the CIA in athousand pieces and scatter it to the windsrdquo21

In 1972 Nixon fired Helms after the Watergatebreak-in because he believed Helms ldquowas outto get himrdquo and he gave orders to Helmsrsquosreplacement James Schlesinger ldquoto turn theplace inside outrdquo22

Neither Kennedy nor Nixon finished theirterms let alone their intention to bring the CIAunder control But their successive firings ofDulles and Helms left a toxic resentment insideCIA especially after Nixonrsquos CIA DirectorJames Schlesinger then purged more that fivehundred analysts and more than one thousandpeople in all from the clandestine service23 CIAveteran Arabist Archibald Roosevelt who was asignificant player along with former CIADirector Bush in the October Surprise believedthat Nixonrsquos appointees as CIA Director ndash JamesSchlesinger and Will iam Colby ndash ldquohad

bothhellipbetrayed their office by pandering topoliticiansrdquo24

CIA resentment and concern was not justdirected against presidents The CIArsquosOperations Division was also determined tofight a number of limitations imposed on it inthe mid-1970s by the responses of aDemocratic Congress to the recommendationsof the Senate Select Committee chaired bySenator Frank Church As a result even beforeCarterrsquos election a number of the CIArsquos alliedintelligence services in France Egypt SaudiArabia Iran and Morocco had allied in the so-called Safari Club to serve as an alternativesource of funding and financing of covertoperations25 In this they used the resourcesand networks of the drug-laundering Bank ofCredit and Commerce International (BCCI) CIAassets like Adnan Khashoggi and BruceRappaport assisted by officially retired CIApersonnel like Miles Copeland and JerryTownsend were part of this global BCCInetwork Former Saudi intelligence chiefPrince Turki bin Faisal a key figure in theSafari Club once admitted candidly that theSafari Club operating at the level of the deepstate was expressly created to overcome theefforts of Carter and Congress to rein in theCIA26

But the efforts of former CIA officers to electReagan were only part of a larger effort toensure the defeat of Carter in 1980 As we shallsee an even more important factor in Carterrsquosdefeat was the prior manipulation of oil pricesby the US oi l majors to engineer anartif icially elevated oil price increase 2 7

The plight of Jimmy Carter in 1979-80epitomizes how weak a president can becomewhen he loses the mandate of heaven from theAmerican deep state First he expressed hisdetermination not to admit the deposed Shah ofIran into the United States knowing very wellthat this might result in the seizure of the USEmbassy in Tehran28 But soon thereafter

APJ | JF 12 | 43 | 4

7

Carter was coerced by the Rockefellers andtheir man in the White House ZbigniewBrzezinski to do just that29 (Carter in cavingin to Rockefellerrsquos demands asked ldquoWhat areyou guys going to recommend that we do whenthey take our embassy and hold our peoplehostagerdquo)30 In the remaining months of hispresidency his popularity was battered by thelong waits at gas stations and conveniencestores generated by a largely artificial gasshortage31 We can see Carter as a victim of thetop-down power of the deep state which wouldmean that Carter himself like Kennedy andNixon before him was not on top

Carterrsquos defeat by Reagan in 1980 ended twotumultuous decades in which one president(along with his brother) was assassinated thenext chose not to run for re-election the nextwas forced to resign and the two last despitetheir incumbencies failed to be re-elected Inevery case one way or another tensionsbetween the presidents and the deep statehelped terminate the careers of those in theWhite House

The Deep State Plots the 1980 Defeat ofJimmy Carter

R i c h a r d H e l m s S o u r c e(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-

USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003 B 1 5 9 )(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003B159)

The Safari Club was an alliance betweennational intelligence agencies that wished tocompensate for the CIArsquos retrenchment in thewake of President Carterrsquos election and SenatorChurchrsquos post-Watergate reforms

After Carter was elected the Safari Club allieditself with Richard Helms and TheodoreShackley against the more restrainedintelligence policies of Jimmy Carter accordingto Joseph Trento In Trentorsquos account thedismissal by William Colby in 1974 of CIAcounterintelligence chief James Angleton

combined with Watergate is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then US Ambassador toIran] and h is most t rustedo p e r a t i v e s o u t s i d e o fCongressional and even Agencypurview James Angleton saidbefore his death that ldquoShackleyand Helms hellip began working withoutsiders like Adham and SaudiArabia The tradit ional CIAanswering to the president was an

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 4: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

4

military expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

Later I came to state this conclusion moreforcefully

Since 1959 v irtual ly a l l ofAmericarsquos major foreign wars havebeen wars 1) induced preemptivelyby the US war machine andor 2)d i sgu i sed as responses tounprovoked enemy aggressionwi th d isgu ises repeated lyengineered by deception deepevents involving in some wayelements of the global drugconnection 8

These deceptions were not designed to deceiveAmericarsquos enemies but first and foremost todeceive the American people to accept theunilateral initiation by America of illegal wars

The continuity between all these successivedeception plots suggests that the repeatedappearances of external attacks or threats(from North Vietnam Nicaragua or Iraq) haveall been false I will suggest that for at least ahalf-century the conflict between the twomindsets has given rise to a series ofconspiratorial deep events emanating from thehidden recesses of the American war machineall designed to deceive and coerce theAmerican people so as to sustain or furthermilitary expansion I will go further and arguethat this continuity underlies yet othersignificant deep events that led not to the startof yet another external war but to theprogressive militarization and politicalrepression of domestic American society

I will document this conflict between the two

mindsets in one way or another revealing howit underlies all the major deep events in recentAmerican history Dallas Tonkin GulfWatergate the 1980 Republican OctoberSurprise Iran-Contra and finally 911 Theseevents were needed to achieve Americanacceptance of both militarized domesticsecurity and successive preemptive foreignwars The neocons of the Project for the NewAmer ican Century PNAC v i r tua l lyacknowledged this when they wrote that theirprogram for American dominance was unlikelyto be adopted soon ldquoabsent some catastrophicand catalyzing eventndashndashlike a new PearlHarborrdquo9

Mil i tary and CIA Resentment o fPresidential Strategies

We can trace what has happened over fiftyyears through the dramatic change inpresidential attitudes toward the Soviet UnionKennedy Johnson and above all Nixon believedin deacutetente with the Soviet Union Startingunder Ford and Carter and climaxing withReagan elements in the United States set outto help destroy what Reagan called ldquothe evilempirerdquo Saudi Arabian wealth and influenceapproved of this change and may have been afactor in achieving it10

The last major achievement of the dove factionwas Kennedyrsquos peaceful resolution of theCuban Missile crisis in 1962 But the JointChiefs had been eager to engage with theSoviet Union and were furious that Kennedydenied them this chance Air Force ChiefGeneral Curtis LeMay ldquocalled the settlementlsquothe greatest defeat in our historyrsquo and urged aprompt invasionrdquo11 Earlier LeMay had calledKennedyrsquos blockade tactic ldquoalmost as bad asthe appeasement at Munichrdquo and hadthreatened to take his dissent public12

APJ | JF 12 | 43 | 4

5

C u r t i s L e M a y S o u r c e(httpswwwgooglecomsearchq=Curtis+Lemayampclient=firefox-aamphs=ONMamprls=orgmozi l la en-USofficialampchannel=fflbamptbm=ischampimgil=1VVVurd6b85ZWM253A253BA8M69Fxt3Z65xM253Bhttp25253A25252F25252Fwwwatomicheritageorg2 5 2 5 2 F p r o f i l e 2 5 2 5 2 F c u r t i s -lemayampsource=iuamppf=mampfir=1VVVurd6b85ZWM253A252CA8M69Fxt3Z65xM252C_ampusg=__drWNL7uO O c V 7 v b -vJeMqYhovY3g3Dampbiw=1213ampbih=647ampved=0CJ4BEMo3ampei=Y9RSVOfMKZGcygSEyYCABwfacrc=_ampimgdii=_ampimgrc=1VVVurd6b85ZWM253A3BA8M69Fxt3Z65xM3Bhttp253A252F252Fwwwatomicheritageorg252Fsites252Fdefault252Ffiles252Flemay252520one_0jpg3Bhttp253A252F252Fwwwatomicheritageorg252Fprofile252Fcurtis-lemay3B4243B504)

There are abundant corroborations for thisalarming standoff between the president andhis Joint Chiefs Daniel Ellsberg who worked inthe Pentagon in 1964 told David Talbot thatafter the Cuban Missile settlement ldquothere wasvirtually a coup atmosphere in Pentagon circles a mood of hatred and rage The atmospherewas poisonous poisonousrdquo13 Disagreementsover how vigorously to pursue the Vietnam War

later divided President Johnson from many ofhis generals split his party and finallypersuaded LBJ not to run for re-election

These resentments survived into the Nixon eraAdmiral Elmo R Zumwalt Jr came close toaccusing Nixon and Kissinger of treason andKissinger of being a Soviet sympathizer14 Abook co-authored by retired admiral ChesterWard and published in 1975 charged thatKissinger was not just a Soviet sympathizer buta conscious Soviet agent15 (With the rise underGeorge W Bush and Obama of neocons withaggressive agendas the Joint Chiefs havetended in contrast to play a more restrainingrole)16

We have to consider that it was no accidentthat deep events the Kennedy assassinationand Watergate cut off the presidencies of bothKennedy and Nixon both bitterly resented bytheir generals and also the only presidents notto serve full terms in the postwar era Lessconspicuously their successors Ford andCarter were also afflicted by deep divisionswithin their respective administrationsFollowing the wishes of Congress

Gerald Ford and Jimmy Cartercarried out the largest number ofrevisions to presidential directivessince Eisenhower carefullyrewriting each of the [COG]emergency documents aware ofchanges in the Cold War (and thecountry) since Ikersquos Time and therecent massive unlawfulness onthe part of the secret Services17

Not coincidentally each of them faced divisionsamong their supporters and they became thefirst and second incumbent presidents to bedefeated for reelection since Herbert Hoover in193218

The military figures who protested against

APJ | JF 12 | 43 | 4

6

presidential restraints on their proposals werenot alone in Washington there was also CIAresistance to presidential efforts to control theagency The most striking example is perhapsthe 1980 election campaign that launched theReagan Revolution Robert Parry hasdemonstrated that this election was precededby a number of illegal actions ndash climaxing in theRepublican October Surprise -- in which bothveterans and active employees of the deepstate ndash no longer the servant of the public statebut its master ndash played a significant role Theevents of the Republican October Surprise havebeen characterized -- by myself among others --as an escalated reprise of dirty tricks betweenRepublicans and Democrats19 It is closer to thetruth to see them as Robert Parry has done asin part a CIA revolt (in alliance with Israel)against Jimmy Carter and his house-cleaningCIA Director Stansfield Turner20

The antagonism between CIA operatives andthe White House did not begin with Carter Itwas so acute right after the Bay of Pigs and thefiring of CIA Director Dulles that Kennedy toldone of the highest officials of his Administrationthat he wanted to splinter the CIA in athousand pieces and scatter it to the windsrdquo21

In 1972 Nixon fired Helms after the Watergatebreak-in because he believed Helms ldquowas outto get himrdquo and he gave orders to Helmsrsquosreplacement James Schlesinger ldquoto turn theplace inside outrdquo22

Neither Kennedy nor Nixon finished theirterms let alone their intention to bring the CIAunder control But their successive firings ofDulles and Helms left a toxic resentment insideCIA especially after Nixonrsquos CIA DirectorJames Schlesinger then purged more that fivehundred analysts and more than one thousandpeople in all from the clandestine service23 CIAveteran Arabist Archibald Roosevelt who was asignificant player along with former CIADirector Bush in the October Surprise believedthat Nixonrsquos appointees as CIA Director ndash JamesSchlesinger and Will iam Colby ndash ldquohad

bothhellipbetrayed their office by pandering topoliticiansrdquo24

CIA resentment and concern was not justdirected against presidents The CIArsquosOperations Division was also determined tofight a number of limitations imposed on it inthe mid-1970s by the responses of aDemocratic Congress to the recommendationsof the Senate Select Committee chaired bySenator Frank Church As a result even beforeCarterrsquos election a number of the CIArsquos alliedintelligence services in France Egypt SaudiArabia Iran and Morocco had allied in the so-called Safari Club to serve as an alternativesource of funding and financing of covertoperations25 In this they used the resourcesand networks of the drug-laundering Bank ofCredit and Commerce International (BCCI) CIAassets like Adnan Khashoggi and BruceRappaport assisted by officially retired CIApersonnel like Miles Copeland and JerryTownsend were part of this global BCCInetwork Former Saudi intelligence chiefPrince Turki bin Faisal a key figure in theSafari Club once admitted candidly that theSafari Club operating at the level of the deepstate was expressly created to overcome theefforts of Carter and Congress to rein in theCIA26

But the efforts of former CIA officers to electReagan were only part of a larger effort toensure the defeat of Carter in 1980 As we shallsee an even more important factor in Carterrsquosdefeat was the prior manipulation of oil pricesby the US oi l majors to engineer anartif icially elevated oil price increase 2 7

The plight of Jimmy Carter in 1979-80epitomizes how weak a president can becomewhen he loses the mandate of heaven from theAmerican deep state First he expressed hisdetermination not to admit the deposed Shah ofIran into the United States knowing very wellthat this might result in the seizure of the USEmbassy in Tehran28 But soon thereafter

APJ | JF 12 | 43 | 4

7

Carter was coerced by the Rockefellers andtheir man in the White House ZbigniewBrzezinski to do just that29 (Carter in cavingin to Rockefellerrsquos demands asked ldquoWhat areyou guys going to recommend that we do whenthey take our embassy and hold our peoplehostagerdquo)30 In the remaining months of hispresidency his popularity was battered by thelong waits at gas stations and conveniencestores generated by a largely artificial gasshortage31 We can see Carter as a victim of thetop-down power of the deep state which wouldmean that Carter himself like Kennedy andNixon before him was not on top

Carterrsquos defeat by Reagan in 1980 ended twotumultuous decades in which one president(along with his brother) was assassinated thenext chose not to run for re-election the nextwas forced to resign and the two last despitetheir incumbencies failed to be re-elected Inevery case one way or another tensionsbetween the presidents and the deep statehelped terminate the careers of those in theWhite House

The Deep State Plots the 1980 Defeat ofJimmy Carter

R i c h a r d H e l m s S o u r c e(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-

USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003 B 1 5 9 )(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003B159)

The Safari Club was an alliance betweennational intelligence agencies that wished tocompensate for the CIArsquos retrenchment in thewake of President Carterrsquos election and SenatorChurchrsquos post-Watergate reforms

After Carter was elected the Safari Club allieditself with Richard Helms and TheodoreShackley against the more restrainedintelligence policies of Jimmy Carter accordingto Joseph Trento In Trentorsquos account thedismissal by William Colby in 1974 of CIAcounterintelligence chief James Angleton

combined with Watergate is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then US Ambassador toIran] and h is most t rustedo p e r a t i v e s o u t s i d e o fCongressional and even Agencypurview James Angleton saidbefore his death that ldquoShackleyand Helms hellip began working withoutsiders like Adham and SaudiArabia The tradit ional CIAanswering to the president was an

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 5: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

5

C u r t i s L e M a y S o u r c e(httpswwwgooglecomsearchq=Curtis+Lemayampclient=firefox-aamphs=ONMamprls=orgmozi l la en-USofficialampchannel=fflbamptbm=ischampimgil=1VVVurd6b85ZWM253A253BA8M69Fxt3Z65xM253Bhttp25253A25252F25252Fwwwatomicheritageorg2 5 2 5 2 F p r o f i l e 2 5 2 5 2 F c u r t i s -lemayampsource=iuamppf=mampfir=1VVVurd6b85ZWM253A252CA8M69Fxt3Z65xM252C_ampusg=__drWNL7uO O c V 7 v b -vJeMqYhovY3g3Dampbiw=1213ampbih=647ampved=0CJ4BEMo3ampei=Y9RSVOfMKZGcygSEyYCABwfacrc=_ampimgdii=_ampimgrc=1VVVurd6b85ZWM253A3BA8M69Fxt3Z65xM3Bhttp253A252F252Fwwwatomicheritageorg252Fsites252Fdefault252Ffiles252Flemay252520one_0jpg3Bhttp253A252F252Fwwwatomicheritageorg252Fprofile252Fcurtis-lemay3B4243B504)

There are abundant corroborations for thisalarming standoff between the president andhis Joint Chiefs Daniel Ellsberg who worked inthe Pentagon in 1964 told David Talbot thatafter the Cuban Missile settlement ldquothere wasvirtually a coup atmosphere in Pentagon circles a mood of hatred and rage The atmospherewas poisonous poisonousrdquo13 Disagreementsover how vigorously to pursue the Vietnam War

later divided President Johnson from many ofhis generals split his party and finallypersuaded LBJ not to run for re-election

These resentments survived into the Nixon eraAdmiral Elmo R Zumwalt Jr came close toaccusing Nixon and Kissinger of treason andKissinger of being a Soviet sympathizer14 Abook co-authored by retired admiral ChesterWard and published in 1975 charged thatKissinger was not just a Soviet sympathizer buta conscious Soviet agent15 (With the rise underGeorge W Bush and Obama of neocons withaggressive agendas the Joint Chiefs havetended in contrast to play a more restrainingrole)16

We have to consider that it was no accidentthat deep events the Kennedy assassinationand Watergate cut off the presidencies of bothKennedy and Nixon both bitterly resented bytheir generals and also the only presidents notto serve full terms in the postwar era Lessconspicuously their successors Ford andCarter were also afflicted by deep divisionswithin their respective administrationsFollowing the wishes of Congress

Gerald Ford and Jimmy Cartercarried out the largest number ofrevisions to presidential directivessince Eisenhower carefullyrewriting each of the [COG]emergency documents aware ofchanges in the Cold War (and thecountry) since Ikersquos Time and therecent massive unlawfulness onthe part of the secret Services17

Not coincidentally each of them faced divisionsamong their supporters and they became thefirst and second incumbent presidents to bedefeated for reelection since Herbert Hoover in193218

The military figures who protested against

APJ | JF 12 | 43 | 4

6

presidential restraints on their proposals werenot alone in Washington there was also CIAresistance to presidential efforts to control theagency The most striking example is perhapsthe 1980 election campaign that launched theReagan Revolution Robert Parry hasdemonstrated that this election was precededby a number of illegal actions ndash climaxing in theRepublican October Surprise -- in which bothveterans and active employees of the deepstate ndash no longer the servant of the public statebut its master ndash played a significant role Theevents of the Republican October Surprise havebeen characterized -- by myself among others --as an escalated reprise of dirty tricks betweenRepublicans and Democrats19 It is closer to thetruth to see them as Robert Parry has done asin part a CIA revolt (in alliance with Israel)against Jimmy Carter and his house-cleaningCIA Director Stansfield Turner20

The antagonism between CIA operatives andthe White House did not begin with Carter Itwas so acute right after the Bay of Pigs and thefiring of CIA Director Dulles that Kennedy toldone of the highest officials of his Administrationthat he wanted to splinter the CIA in athousand pieces and scatter it to the windsrdquo21

In 1972 Nixon fired Helms after the Watergatebreak-in because he believed Helms ldquowas outto get himrdquo and he gave orders to Helmsrsquosreplacement James Schlesinger ldquoto turn theplace inside outrdquo22

Neither Kennedy nor Nixon finished theirterms let alone their intention to bring the CIAunder control But their successive firings ofDulles and Helms left a toxic resentment insideCIA especially after Nixonrsquos CIA DirectorJames Schlesinger then purged more that fivehundred analysts and more than one thousandpeople in all from the clandestine service23 CIAveteran Arabist Archibald Roosevelt who was asignificant player along with former CIADirector Bush in the October Surprise believedthat Nixonrsquos appointees as CIA Director ndash JamesSchlesinger and Will iam Colby ndash ldquohad

bothhellipbetrayed their office by pandering topoliticiansrdquo24

CIA resentment and concern was not justdirected against presidents The CIArsquosOperations Division was also determined tofight a number of limitations imposed on it inthe mid-1970s by the responses of aDemocratic Congress to the recommendationsof the Senate Select Committee chaired bySenator Frank Church As a result even beforeCarterrsquos election a number of the CIArsquos alliedintelligence services in France Egypt SaudiArabia Iran and Morocco had allied in the so-called Safari Club to serve as an alternativesource of funding and financing of covertoperations25 In this they used the resourcesand networks of the drug-laundering Bank ofCredit and Commerce International (BCCI) CIAassets like Adnan Khashoggi and BruceRappaport assisted by officially retired CIApersonnel like Miles Copeland and JerryTownsend were part of this global BCCInetwork Former Saudi intelligence chiefPrince Turki bin Faisal a key figure in theSafari Club once admitted candidly that theSafari Club operating at the level of the deepstate was expressly created to overcome theefforts of Carter and Congress to rein in theCIA26

But the efforts of former CIA officers to electReagan were only part of a larger effort toensure the defeat of Carter in 1980 As we shallsee an even more important factor in Carterrsquosdefeat was the prior manipulation of oil pricesby the US oi l majors to engineer anartif icially elevated oil price increase 2 7

The plight of Jimmy Carter in 1979-80epitomizes how weak a president can becomewhen he loses the mandate of heaven from theAmerican deep state First he expressed hisdetermination not to admit the deposed Shah ofIran into the United States knowing very wellthat this might result in the seizure of the USEmbassy in Tehran28 But soon thereafter

APJ | JF 12 | 43 | 4

7

Carter was coerced by the Rockefellers andtheir man in the White House ZbigniewBrzezinski to do just that29 (Carter in cavingin to Rockefellerrsquos demands asked ldquoWhat areyou guys going to recommend that we do whenthey take our embassy and hold our peoplehostagerdquo)30 In the remaining months of hispresidency his popularity was battered by thelong waits at gas stations and conveniencestores generated by a largely artificial gasshortage31 We can see Carter as a victim of thetop-down power of the deep state which wouldmean that Carter himself like Kennedy andNixon before him was not on top

Carterrsquos defeat by Reagan in 1980 ended twotumultuous decades in which one president(along with his brother) was assassinated thenext chose not to run for re-election the nextwas forced to resign and the two last despitetheir incumbencies failed to be re-elected Inevery case one way or another tensionsbetween the presidents and the deep statehelped terminate the careers of those in theWhite House

The Deep State Plots the 1980 Defeat ofJimmy Carter

R i c h a r d H e l m s S o u r c e(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-

USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003 B 1 5 9 )(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003B159)

The Safari Club was an alliance betweennational intelligence agencies that wished tocompensate for the CIArsquos retrenchment in thewake of President Carterrsquos election and SenatorChurchrsquos post-Watergate reforms

After Carter was elected the Safari Club allieditself with Richard Helms and TheodoreShackley against the more restrainedintelligence policies of Jimmy Carter accordingto Joseph Trento In Trentorsquos account thedismissal by William Colby in 1974 of CIAcounterintelligence chief James Angleton

combined with Watergate is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then US Ambassador toIran] and h is most t rustedo p e r a t i v e s o u t s i d e o fCongressional and even Agencypurview James Angleton saidbefore his death that ldquoShackleyand Helms hellip began working withoutsiders like Adham and SaudiArabia The tradit ional CIAanswering to the president was an

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 6: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

6

presidential restraints on their proposals werenot alone in Washington there was also CIAresistance to presidential efforts to control theagency The most striking example is perhapsthe 1980 election campaign that launched theReagan Revolution Robert Parry hasdemonstrated that this election was precededby a number of illegal actions ndash climaxing in theRepublican October Surprise -- in which bothveterans and active employees of the deepstate ndash no longer the servant of the public statebut its master ndash played a significant role Theevents of the Republican October Surprise havebeen characterized -- by myself among others --as an escalated reprise of dirty tricks betweenRepublicans and Democrats19 It is closer to thetruth to see them as Robert Parry has done asin part a CIA revolt (in alliance with Israel)against Jimmy Carter and his house-cleaningCIA Director Stansfield Turner20

The antagonism between CIA operatives andthe White House did not begin with Carter Itwas so acute right after the Bay of Pigs and thefiring of CIA Director Dulles that Kennedy toldone of the highest officials of his Administrationthat he wanted to splinter the CIA in athousand pieces and scatter it to the windsrdquo21

In 1972 Nixon fired Helms after the Watergatebreak-in because he believed Helms ldquowas outto get himrdquo and he gave orders to Helmsrsquosreplacement James Schlesinger ldquoto turn theplace inside outrdquo22

Neither Kennedy nor Nixon finished theirterms let alone their intention to bring the CIAunder control But their successive firings ofDulles and Helms left a toxic resentment insideCIA especially after Nixonrsquos CIA DirectorJames Schlesinger then purged more that fivehundred analysts and more than one thousandpeople in all from the clandestine service23 CIAveteran Arabist Archibald Roosevelt who was asignificant player along with former CIADirector Bush in the October Surprise believedthat Nixonrsquos appointees as CIA Director ndash JamesSchlesinger and Will iam Colby ndash ldquohad

bothhellipbetrayed their office by pandering topoliticiansrdquo24

CIA resentment and concern was not justdirected against presidents The CIArsquosOperations Division was also determined tofight a number of limitations imposed on it inthe mid-1970s by the responses of aDemocratic Congress to the recommendationsof the Senate Select Committee chaired bySenator Frank Church As a result even beforeCarterrsquos election a number of the CIArsquos alliedintelligence services in France Egypt SaudiArabia Iran and Morocco had allied in the so-called Safari Club to serve as an alternativesource of funding and financing of covertoperations25 In this they used the resourcesand networks of the drug-laundering Bank ofCredit and Commerce International (BCCI) CIAassets like Adnan Khashoggi and BruceRappaport assisted by officially retired CIApersonnel like Miles Copeland and JerryTownsend were part of this global BCCInetwork Former Saudi intelligence chiefPrince Turki bin Faisal a key figure in theSafari Club once admitted candidly that theSafari Club operating at the level of the deepstate was expressly created to overcome theefforts of Carter and Congress to rein in theCIA26

But the efforts of former CIA officers to electReagan were only part of a larger effort toensure the defeat of Carter in 1980 As we shallsee an even more important factor in Carterrsquosdefeat was the prior manipulation of oil pricesby the US oi l majors to engineer anartif icially elevated oil price increase 2 7

The plight of Jimmy Carter in 1979-80epitomizes how weak a president can becomewhen he loses the mandate of heaven from theAmerican deep state First he expressed hisdetermination not to admit the deposed Shah ofIran into the United States knowing very wellthat this might result in the seizure of the USEmbassy in Tehran28 But soon thereafter

APJ | JF 12 | 43 | 4

7

Carter was coerced by the Rockefellers andtheir man in the White House ZbigniewBrzezinski to do just that29 (Carter in cavingin to Rockefellerrsquos demands asked ldquoWhat areyou guys going to recommend that we do whenthey take our embassy and hold our peoplehostagerdquo)30 In the remaining months of hispresidency his popularity was battered by thelong waits at gas stations and conveniencestores generated by a largely artificial gasshortage31 We can see Carter as a victim of thetop-down power of the deep state which wouldmean that Carter himself like Kennedy andNixon before him was not on top

Carterrsquos defeat by Reagan in 1980 ended twotumultuous decades in which one president(along with his brother) was assassinated thenext chose not to run for re-election the nextwas forced to resign and the two last despitetheir incumbencies failed to be re-elected Inevery case one way or another tensionsbetween the presidents and the deep statehelped terminate the careers of those in theWhite House

The Deep State Plots the 1980 Defeat ofJimmy Carter

R i c h a r d H e l m s S o u r c e(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-

USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003 B 1 5 9 )(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003B159)

The Safari Club was an alliance betweennational intelligence agencies that wished tocompensate for the CIArsquos retrenchment in thewake of President Carterrsquos election and SenatorChurchrsquos post-Watergate reforms

After Carter was elected the Safari Club allieditself with Richard Helms and TheodoreShackley against the more restrainedintelligence policies of Jimmy Carter accordingto Joseph Trento In Trentorsquos account thedismissal by William Colby in 1974 of CIAcounterintelligence chief James Angleton

combined with Watergate is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then US Ambassador toIran] and h is most t rustedo p e r a t i v e s o u t s i d e o fCongressional and even Agencypurview James Angleton saidbefore his death that ldquoShackleyand Helms hellip began working withoutsiders like Adham and SaudiArabia The tradit ional CIAanswering to the president was an

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

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APJ | JF 12 | 43 | 4

7

Carter was coerced by the Rockefellers andtheir man in the White House ZbigniewBrzezinski to do just that29 (Carter in cavingin to Rockefellerrsquos demands asked ldquoWhat areyou guys going to recommend that we do whenthey take our embassy and hold our peoplehostagerdquo)30 In the remaining months of hispresidency his popularity was battered by thelong waits at gas stations and conveniencestores generated by a largely artificial gasshortage31 We can see Carter as a victim of thetop-down power of the deep state which wouldmean that Carter himself like Kennedy andNixon before him was not on top

Carterrsquos defeat by Reagan in 1980 ended twotumultuous decades in which one president(along with his brother) was assassinated thenext chose not to run for re-election the nextwas forced to resign and the two last despitetheir incumbencies failed to be re-elected Inevery case one way or another tensionsbetween the presidents and the deep statehelped terminate the careers of those in theWhite House

The Deep State Plots the 1980 Defeat ofJimmy Carter

R i c h a r d H e l m s S o u r c e(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-

USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003 B 1 5 9 )(httpswwwgooglecomsearchq=Richard+Helmsampclient=firefox-aamphs=77gamprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=s9VSVJjdC4mQyQTFjYD4Bwampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=ICmdLnPx8Ak__M253A3BnQRqy1H0VQjyMM3Bhttp253A252F252Fuploadwikimediaorg252Fwikipedia252Fcommons252Fthumb252Fa252Fa1252FRichard_Helms jpg252F200px-Richard_Helmsjpg3Bhttp253A252F252Fenwikipediaorg252Fwiki252FRichard_Helms3B2003B159)

The Safari Club was an alliance betweennational intelligence agencies that wished tocompensate for the CIArsquos retrenchment in thewake of President Carterrsquos election and SenatorChurchrsquos post-Watergate reforms

After Carter was elected the Safari Club allieditself with Richard Helms and TheodoreShackley against the more restrainedintelligence policies of Jimmy Carter accordingto Joseph Trento In Trentorsquos account thedismissal by William Colby in 1974 of CIAcounterintelligence chief James Angleton

combined with Watergate is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then US Ambassador toIran] and h is most t rustedo p e r a t i v e s o u t s i d e o fCongressional and even Agencypurview James Angleton saidbefore his death that ldquoShackleyand Helms hellip began working withoutsiders like Adham and SaudiArabia The tradit ional CIAanswering to the president was an

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 8: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

8

empty vessel having little morethan technical capabilityrdquo32

Trento adds that ldquoThe Safari Club needed anetwork of banks to finance its intelligenceoperations With the official blessing of GeorgeBush as the head o f the CIA Adhamtransformed the Bank of Credit andCommerce International (BCCI) into aworldwide money-laundering machinerdquo33

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who had been forced out of theCIA by Turner and that this was coordinatedby Theodore Shackley

Shackley who still had ambitionsto become DCI believed thatwithout his many sources andoperatives like [Edwin] Wilson theSafari Clubmdashoperating with[former DCI Richard] Helms incharge in Tehranmdashwould beineffective Unless Shackleytook direct action to complete theprivatization of intelligenceoperations soon the Safari Clubwould not have a conduit to [CIA]resources The solution create atotally private intelligence networkusing CIA assets until PresidentCarter could be replaced34

During the 1980 election campaign each partyaccused the other of plotting an OctoberSurprise to elect their candidate Subsequentlyother journalists notably Robert Parry accusedCIA veterans on the Reagan campaign alongwith Shackley of an arguably treasonable butsuccessful plot with Iranians to delay return ofthe US hostages until Reagan took office inJanuary 198135

According to Parry Alexandre de Marenches ofthe Safari Club arranged for William Casey (a

fellow Knight of Malta) to meet with Iranianand Israeli representatives in Paris in July andOctober 1980 where Casey promised deliveryto Iran of needed US armaments in exchangefor a delay in the return of the US hostages inIran36 Parry also suspects a role of BCCI in thesubsequent flow of Israeli armaments to Iran

A l e x a n d r e d e M a r e n c h e s S o u r c e(httpswwwgooglecomsearchq=Alexandre+de+Ma r e n c h e s amp c l i e n t = f i r e f o x -a amp h s = e o 1 amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = _ 9 V S V O v D N Z W t y A T -noKADQampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=dk0zAIT_zJMMIM253A3B m L j -B6ASuql9BM3Bhttp253A252F252Fcdnhistorycommonsorg252Fimages252Fevents252Fa376_alexandre_de_mareches_2050081722-18356jpg3Bhttp253A252F252Fwwwhistorycommonsorg252Fentityjsp253Fentity253Dalexandre_de_marenches_13B1743B231)

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 9: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

9

De Marenches was also a member of the PinayCircle ldquoan international right-wing propagandagroup which brings together serving or retiredintelligence officers and politicians with links toright-wing intelligence factions from most ofthe countries in Europerdquo At a June 1980meeting of the Pinay Circle ldquoattention wasturned towards the American Presidentialelection that was to bring Reagan to powerrdquo37

(David Rockefeller reports in his Memoirs thatat one point in his life he was usually the onlyAmerican present at meetings of the Circle)38

A more usual explanation for Carterrsquos defeat in1980 was the second oil shock of 1979ndash1980 inwhich an acute gas shortage led to both asudden increase in prices and long gas lines atservice stat ions I t is customary forestablishment scholars to blame the shortageon political upheavals in Iran which led to ldquoacutoff of Iranian oilrdquo39

However Robert Sherrillrsquos close analysis of theAmerican oil industry demonstrates thatAmerican oil companies not Iranian turmoilwere primarily responsible for the gasshortage

US companies were up to theirown strategy Although in factAmerica was importing more oil inJanuary and February [1979]during the Iranian shutdown thanit had imported during the sameperiod in 1978 major oil importerspretended that the Iranianldquoshortagerdquo was real It was theexcuse they gave for slashing theamount of gasoline they suppliedto their retail dealers A CIAstudy showed that in the first fivemonths of the year at a time whenthe Administration was deploringour oil shortage US companiesexported more oil than they had inthose glut years 1977 and 197840

The oil majorsrsquo manipulation of domestic oilprices combined with Carterrsquos failure to bringthe hostages home combined to cause the firstdefeat for an elected president running forreelection since that of Herbert Hoover in1932

Not mentioned by either mainstreamjournalists or Sherrill was the role quietlyplayed by Saudi Arabia in augmenting the 1979gas crisis ldquoThe Saudis had cut production bynearly 1 million barrels a day to 95 million atthe start of the year [1979] and in April 1979they made a second cut to 85 million TheSaudis had the capacity to produce 12 millionbarrels a day at that pointrdquo41

1 9 7 9 - 8 0 g a s l i n e S o u r c e(httpswwwgooglecomsearchq=gas+lines+1980ampclient=firefox-aamphs=Er1amprls=orgmozillaen-USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa=Xampei=n9ZSVPviLcH5yQTan4CwDgampved=0CAgQ_AUoAQampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=zN9dCNwlLHtgiM253A3B0fLuTsoW4UoV4M3Bhttp253A252F252Flh4ggphtcom252F-ii7Bt4mqbhw252FUJU4brxUI2I252FAAAAAAAArNw 2 5 2 F 0 J l g l K D i A I A 2 5 2 F 1 9 7 9 - g a s -lines_thumb1_thumb252525255B1252525255Djpg253Fimgmax253D8003Bhttp253A252F252 F b e f o r e i t s n e w s c o m 2 5 2 F o p i n i o n -conservative252F2012252F11252Fparty-like-i t s - 1 9 7 9 - o r -maybe-1980-2517830html3B5003B373)

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 10: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

10

The Saudi manipulation of gas prices reflectedtheir acute displeasure with the Camp DavidAccords of 1978 which did nothing to changeIsraeli control of Jerusalem42 But whatconcerns us here is that the concerted policy ofbig oil in 1979 was closely aligned with theirdeep state allies in the Saudi government andthe Safari Club to the severe detriment ofAmericans and their nominal government thebeleaguered Carter administration

The oil shock and gas shortage contrived by bigoil in 1979 together with the October Surprisewere the chief factors in enabling thesubsequent Reagan Revolution This in turnopened the door for a new phase in ldquocontinuityof governmentrdquo or COG plans that weresecretly prepared over two decades byplanners like Donald Rumsfeld and DickCheney and then implemented on 911

Postscript

The door was also opened to the emergence oftwo-party agreement on a so -ca l ledldquoWashington consensusrdquo in economics bywhich we can mean here the increasingderegulation of the private sector andprivatization of the public sector A crucial stepin this was Reaganrsquos decisive end to fourdecades of power-sharing between labor andcapital by decisively crushing the 1981 strikeof the Professional Air Traffic ControllersOrganization or PATCO This completed thetransformation of the Republican Party of the1950s (when the Goldwater conservatives werea fringe minority) into that of the 1980s (whenGoldwater was now to the left of the newconservative majority) The era of the Councilon Foreign Relations and the Committee forEconomic Development had been replaced bythe era of the Heritage foundation and theAmerican Enterprise Institute

The American Enterprise Institute Washington DCS o u r c e(httpswwwgooglecomsearchq=American+Enterpr i s e + I n s t i t u t e amp c l i e n t = f i r e f o x -a amp h s = I Z M amp r l s = o r g m o z i l l a e n -USofficialampchannel=fflbampsource=lnmsamptbm=ischampsa = X amp e i = R d d S V I b s N I -dygTe5YH4Bgampved=0CAsQ_AUoBAampbiw=1213ampbih=647facrc=_ampimgdii=_ampimgrc=LgflJZbcpGL4nM253A3B4EZhBTlPRDT9OM3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_nw252F20050418593-94w_17th_1150_AEIjpg3Bhttp253A252F252Fwwwbfcollectionnet252Fcities252Fusa252Fdc252F17th_)

Money including much new money generatedby the Vietnam War was largely responsiblefor this change But as I noted in American WarMachine (p38) the CIA played a hand inpromoting Chicago School neoliberalism forapplication in Chile after the Pinochet takeoverin 1973 Since 1981 this program ofderegulation has been increasingly applied athome The result has been a major reversal ofthe capitalist reforms dating back to FDR in the1930s and to Theodore Roosevelt before himInstead we have seen restored the disparities ofwealth and income that characterized theldquogilded agerdquo of the late 19th century I am notarguing that these unhealthy and dysfunctionaldisparities were consciously intended On thecontrary I argue elsewhere that it was an

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 11: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

11

overreaction arising from the anxieties of thevery wealthy in the 1960s and 1970s ananxiety urgently shared by elements in thedeep state that control of the country wasslipping away from them43

The deep state also played an important andperhaps decisive role in ending deacutetente Seeingits role challenged by a series of post-Watergate reforms the American and indeedthe nascent global deep state (represented bythe Safari Club) rallied to revive the covertprocesses of the Cold War under a new namethe so-called ldquoWar on Terrorrdquo As I haverecounted in The Road to 911 (pp 60-61) theso-called Halloween Massacre of 1975overseen by Donald Rumsfeld and Dick Cheneyin the Ford White House resulted in a new CIADirector George HW Bush followed by asomber new reassessment of the ldquoSovietthreatrdquo that helped elect Reagan and has sincebeen responsible for the massive US defensebudget

Since its success with the Reagan Revolutionthe deep state has served chiefly to consolidatea compliant status quo rather than to changeit But the hegemony of the deep state was notfinally established until 911 and theimplementation of COG

Peter Dale Scott is a former Canadiandiplomat and English Professor at theUniversity of California Berkeley His latestbook is The American Deep State Wall StreetBig Oil and the Attack on US Democracy(httpwwwamazoncomdp1442214244tag=theasipacjo0b-20) being released this month byRowman amp Littlefield He is also the author ofD r u g s O i l a n d W a r(httpamzncom0742525228tag=theasipacjo0 b - 2 0 ) T h e R o a d t o 9 1 1(httpamzncom0520237730tag=theasipacjo0b-20) The War Conspiracy JFK 911 and theD e e p P o l i t i c s o f W a r(httpamzncom0980121361tag=theasipacjo0b-20) and American War Machine Deep

Politics the CIA Global Drug Connection andt h e R o a d t o A f g h a n i s t a n(httpamzncom0742555941tag=theasipacjo0b-20) His website which contains a wealth ofh i s w r i t i n g s i s h e r e(httpwwwpeterdalescottnetqhtml)

Recommended citation Peter Dale Scott TheFates of American Presidents Who Challengedthe Deep State (1963-1980) The Asia-PacificJournal Vol 12 Issue 44 No 4 November 32014

Notes

1 Dana Priest and William Arkin Top SecretAmerica The Rise of the New AmericanSecurity State (New York Little Brown 2011)52

2 Eg Marc Ambinder and DG Grady DeepState Inside the Government Secrecy Industry(New York Wiley 2013) cf John Tirman ldquoTheQu ie t Coup No Not Egypt Here rdquo(httpwwwhuffingtonpostcomjohn-tirmannsa-deep-state_b_3569316html) HuffingtonPostJuly 9 2013 ldquoNow we know the United Statesof America is partially governed by a deepstate undemocratic secret aligned withintelligence agencies spying on friend and foelawless in almost every respectrdquo

3 Mike Lofgren ldquo A Shadow GovernmentC o n t r o l s A m e r i c a rdquo(httpreadersupportednewsorgopinion2277-7522216-a-shadow-government-controls)Reader Supported News February 22 2014

4 Hannah Arendt Between Past and FutureEight Exercises in Political Thought (New YorkPenguin Books 1993) 93 emphasis addedAdapting Arendtrsquos distinction Jonathan Schellmade a Gandhian case in support of nonviolentpersuasive or community power as a means ofchallenging top-down violent power and thusreforming the world I developed this casemyself in The Road to 911 (Jonathan SchellThe Unconquerab le Wor ld Power

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 12: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

12

Nonviolence and the Will of the People [NewYork Metropolitan BooksHenry Holt 2003]227-31 Peter Dale Scott The Road to 911Wealth Empire and the Future of America[Berkeley University of California Press 2007]249-66 269)

5 It is one of the special features of Americarsquosrichly diverse history that it has seen extremeexamples of both persuasive power (the townmeet ings o f New Englandrsquos Pur i tancommunities) and violent power (theoppression of slaves and of native Americans)

6 Peter Dale Scott American War Machine(Lanham MD Rowman amp Littlefield 2010) 3

7 Scott American War Machine 31-34 175-76209-11

8 Scott American War Machine 195 In fact allo f the major wars were preceded bydeceptions except for the 1980 proxy war inAfghanistan There as Brzezinski boasted laterin print a series of US provocations helpeddraw the Soviet Union into Afghanistan whereit suffered defeat

9 Project for the New American Centuryldquo R e b u i l d i n g A m e r i c a s D e f e n s e s rdquo(httpwwwnewamericancenturyorgRebuildingAmericasDefensespdf) 2000 discussion inScott Road to 911 23-24 etc

10 Rachel Bronson Thicker than oil Americasuneasy partnership with Saudi Arabia

(Oxford Oxford University Press 2006) 168ldquoAfter a decade of deacutetente a policy SaudiArabia never supported King Fahd welcomedReaganrsquos determination to confront Sovietpressure more directlyrdquo

11 Robert Dallek An Unfinished Life 570-71citing Michael Beschloss Crisis Years 544

12 Dallek An Unfinished Life 554-55

13 Talbot Brothers 172-73 quoted in AndrewGavin Marshall ldquoThe National Security Statea n d t h e A s s a s s i n a t i o n o f J F K rdquo(httpwwwglobalresearchcaindexphpcontext=vaampaid=22071) Global Research November23 2010

14 Kutler Wars of Watergate 117 cf 457ndash58Lukas (Nightmare 105) called the JCSespionage ldquoa natural response to the increasingconcentration of national security-making inKissingerrsquos NSCrdquo But the objection toKissinger had to do with policy as well as withprocedures

15 See Phyllis Schlafly and Chester WardKissinger on the Couch (New Rochelle NYArlington House 1975) Ward was a retiredUS admiral

16 See eg Seymour Hersh ldquoThe Red Line andt h e R a t L i n e rdquo(httpwwwlrbcoukv36n08seymour-m-hershthe-red-line-and-the-rat-line) London Reviewof Books April 17 2014

17 William Arkin American Coup How aTerrified Government Is Destroying theConstitution (New York Little Brown 2013)34-35

18 See the discussions of the personnel changesin the so-called Halloween Massacre of October1975 under Ford and the contest betweenBrzezinski and Vance under Carter (Scott Roadto 911 50-92)

19 In 2007 I wrote that they ldquohad a precedentNixonrsquos secret deals with Vietnamese presidentNguyen van Thieu in 1968rdquo (Road to 911 100)

20 Robert Parry ldquoThe CIALikud Sinking ofJ i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnam

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 13: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

13

era for ousting legendary spymaster TedShackley and for failing to protect longtimeUS allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

21 Tom Wicker et al ldquoCIA Maker of Policy orToolrdquo New York Times April 25 1966 quotedin J ames W Doug la s s JFK and theUnspeakable Why He Died and Why It Matters(Maryknoll NY Orbis Books 2008) 15

22 Weiner Legacy of Ashes the history of theCIA (New York Doubleday 2007) 374

23 Weiner Legacy of ashes 376

24 Hugh Wilford Americas great game theCIAs secret Arabists and the shaping of themodern Middle East (New York Basic Books2013) 295

25 Scott Road to 911 62-63

26 Ibrahim Warde The price of fear the truthbehind the financial war on terror (BerkeleyUniversity of California Press 2007) 133

27 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983)

28 American charge drsquoaffaires Bruce Laingenhad warned from Tehran that the Shah shouldnot be admitted until the Embassy had beenprovided with a protective force as ldquothe dangerof hostages being taken in Iran will persistrdquo(Barry M Rubin Paved with Good Intentionsthe American experience and Iran [New YorkOxford University Press 1980] 296-97)

29 Details in Scott Road to 911 80-92

30 New York Times 111879 Pierre SalingerAmer ica He ld Hos tage The Secre tNegotiations (New York Doubleday 1981) 25Hamilton Jordan who was one of those present

and advising for the Shahrsquos admission latergave a more hypothetical version ldquoWhat areyou guys going to advise me to do if theyoverrun our embassy and take our peoplehostagesrdquo (Jordan Crisis 32) Earlier on July27 1979 Carter had commented that ldquohe didnot wish the Shah to be here playing tenniswhile Americans in Tehran were beingkidnapped or even killedrdquo (Zbigniew BrzezinskiPower and Principle Memoirs of the NationalSecurity Advisor 1977-1981 (New YorkFarrar Straus Giroux 1983) 474)

31 See Robert Sherrill The oil follies of1970-1980 how the petroleum industry stolethe show (and much more besides) (GardenCity NY Anchor PressDoubleday 1983)470-80

32 Joseph J Trento Prelude to terror the rogueCIA and the legacy of Americas privateintelligence network (New York Carroll amp Graf2005) 61

33 Joseph J Trento Prelude to terror 104-05

34 Trento Prelude to terror 113-14

35 ldquoIn 1980 Shackley was set on putting hisformer boss George Bush in the White Houseand possibly securing the CIA directorship forhimself Shackley volunteered his prodigiousskills to Bush in early 1980 Though that facthas come out before Shackleys involvement inthe Iran hostage issue the so-called OctoberSurprise controversy has been a closely heldsecret until nowrdquo (Robert Parry ldquoBush amp a CIAP o w e r P l a y - - T h e C o n s o r t i u m rdquo(httpwwwconsortiumnewscomarchivexfile7html) Consortiumnews Cf ldquoThe CIALikudS i n k i n g o f J i m m y C a r t e r rdquo(httpwwwconsortiumnewscom2010062410html) Consortiumnews June 24 2010 ldquoInsidethe CIA Carter and his CIA Director StansfieldTurner were blamed for firing many of the free-wheeling covert operatives from the Vietnamera for ousting legendary spymaster TedShackley and for failing to protect longtime

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110

Page 14: The Fates of American Presidents Who Challenged the Deep ... · Volume 12 | Issue 43 | Number 4 | Article ID 4206 | Oct 20, 2014 1 The Fates of American Presidents Who Challenged

APJ | JF 12 | 43 | 4

14

US allies (and friends of the CIA) such asIranrsquos Shah and Nicaraguarsquos dictator AnastasioSomozardquo

36 Robert Parry Trick or treason the Octobersurprise mystery (New York Sheridan SquarePress 1993) 154-55

37 David Teacher ldquoThe Pinay Circle andD e s t a b i l i s a t i o n i n E u r o p e rdquo(http wik ispookscomwiki DocumentThe_Pinay_Circle) Lobster 18 October 1989

38 David Rockefeller Memoirs (New YorkRandom House 2002) 412-13

39 W Carl Biven Jimmy Carters EconomyPolicy in an Age of Limits (Chapel HillUniversity of North Carolina Press 2002) 1ldquoThere were more practical consequences ofthe Iranian crisis that tested the temper of thepublic perhaps the most visible were agasoline shortage and long lines of cars at gasstations caused by the cutoff of Iranian oilrdquo CfDaniel Yergin The quest energy security andthe remaking of the modern world (New YorkPenguin Press 2011) 531 ldquoThe IranianRevolution led to chaos in the oil market rapidincreases in prices new gas lines and a secondoil shock and the Carter administration startedto come unwoundrdquo In 2007 I myself wrote thatldquoBy effectively restricting the access of Iran tothe global oil market the Iranian assets freezebecame a factor in the huge oil price increasesof 1979-81 (and thus an indirect cause ofCarterrsquos electoral defeat in 1980)rdquo (Peter DaleScott The Road to 911 Wealth Empire andthe Future of America (Berkeley University ofCalifornia Press 2007) 88) It was indeed afactor But in the context I was arguing that theIranian assets freeze attributed to Carter in1979 was in fact part of a complex strategy

arranged by advisers to the Chase ManhattanBank Prominent among these was ArchibaldRoosevelt a former CIA officer and colleague ofCopeland whom Parry also accuses ofinvolvement in the Republican OctoberSurprise (Scott The Road to 911 91 ParryTrick or treason 49 51 257)

40 Robert Sherrill The oil follies of 1970-1980how the petroleum industry stole the show (andmuch more besides) (Garden City NY AnchorPressDoubleday 1983) 435-37 In likemanner William Engdahl has attributed theEuropean oil crisis in 1979 to the marketbehavior of BP (F William Engdahl A Centuryof War Anglo-American Oil Politics and theNew World Order London Pluto Press 2004] 173)

41 David B Ottaway The kings messengerPrince Bandar bin Sultan and Americastangled relationship with Saudi Arabia (NewYork Walker amp Company 2008) 41

42 Robert Lacey The Kingdom Arabia amp theHouse of Sarsquoud (New York Avon 1981)

452-55 ldquoCrown Prince Fahad decided he mustdistance himself from Washington In February1979 he cancelled a trip he had scheduled tomeet President Carter in the following monthrdquo(452) In ensuing months of negotiationsSaudis first increased production in late 1979and then increased their oil price in 1980 Atissue also was the Saudi desire to acquireAWACS (airborne warning and control system)aircraft which were not supplied to them untilunder Reagan (Ottaway The kings messenger42-47)

43 Peter Dale Scott The American Deep StateWall Street Big Oil and the Attack on USDemocracy (Lanham MD Rowman ampLittlefield 2014) 110