The Asia-Pacific Journal | Japan Focus Volume 12 | Issue 10 | Number 5 | Article ID 4090 | Mar 03, 2014

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The State, the Deep State, and the Wall Street Overworld 国と深層国家と超支者ウォール・ストリート (Updates March 13, 2014)

Peter Dale Scott

Updated March 13, 2014. Germant r a n s l a t i o n a v a i l a b l e(http://www.larsschall.com/2014/03/14/der-staat-der-tiefe-staat-und-die-wall-street-oberwelt-2/).

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 with,operated more or less in the open:the 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 cadre – and itsentirety…visible only to God.1

And in 2013, particularly after the militaryreturn to power in Egypt, more and moreauthors referred to this second level asAmerica's "deep state."2 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 not

exp 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. Thesubsurface part of the iceberg Ishall call the Deep State, whichoperates according to its owncompass heading regardless ofwho is formally in power.3

At the end of 2013 a New York Times Op-Ednoted this trend, and even offered a definitionof the term that will work for the purposes ofthis essay:

DEEP STATE n . A hard- to -perceive level of government orsuper-control that exists regardlessof elections and that may thwartpopular movements or radicalchange. Some have said that Egyptis being manipulated by its deepstate.4

The political activities of the deep state are thechief source and milieu of what I haveelsewhere called "deep politics:" "all thosepolitical practices and arrangements,deliberate or not, which are usually repressedrather than acknowledged."5

Others, like Tom Hayden, call the deep state a"state within the state," and suggest it may be

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responsible for the failure of the Obamaadministration to follow the policy guidelines ofthe president's speeches:

We have seen evidence of a "statewithin the state" before, goingback as far as the CIA's operationsagainst Cuba. In Obama's time, thepresident correctly named the2009 coup in Honduras a "coup",and then seemed powerless toprevent it.6

This development of a two-level or dual statehas been paralleled by two other dualities: theincreasing resolution of American society intotwo classes – the "one percent" and the "ninety-nine percent" – and the bifurcation of the U.S.economy into two aspects: the domestic, stillsubject to some governmental regulation andtaxation, and the international, relatively freefrom governmental controls.7 All threedevelopments have affected and intensifiedeach other – particularly since the ReaganRevolution of 1980, which saw Americaninequality of wealth cease to diminish andbegin to increase.8 Thus for example we shallsee how Wall Street – the incarnation of the"one percent" – played a significant role inincreasing the deep state after World War Two,and how three decades later the deep stateplayed a significant role in realigning Americafor the Reagan Revolution.

In earlier books I have given versions of thisAmerica-centered account of America's shiftinto empire and a deep state. But anotherfactor to be mentioned is the shift of globalhistory towards an increasingly global societydominated by a few emergent superpowers.This trend was accelerated after the IndustrialRevolution by new technologies of transport,from the railroad in the 19th century to the jetplane and space travel in the 20th.9

In the fallout from this rearrangement we must

include two world wars, as a result of whichBritain ceased to act as the dominantsuperpower it had been since Napoleon. Notsurprisingly, the Soviet Union and the UnitedStates subsequently competed in a Cold War tofill the gap. It was not however predeterminedthat the Cold War would be as thuggish andcovertly violent as for decades it continued tobe. For that we should look to more contingentcauses on both sides of the Iron Curtain –starting with the character of Stalin and hisparty but also including the partly responsivedevelopment of the American deep state.

The Deep State, The Shadow Governmentand the Wall Street Overworld

The "deep state" was defined by the UKnewsletter On Religion as "the embedded anti-democratic power structures within agovernment, something very few democraciescan claim to be free from." 1 0 The termoriginated in Turkey in 1996, to refer to U.S.-backed elements, primarily in the intelligenceservices and military, who had repeatedly usedviolence to interfere with and realign Turkey'sdemocratic political process. Sometimes thedefinition is restricted to elements within thegovernment (or "a state-within-the state"), butmore often in Turkey the term is expanded, forhistorical reasons, to include "members of theTurkish underworld."11 In this essay I shall use"deep state" in the larger sense, to include boththe second level of secret government insideWashington and those outsiders powerfulenough, in either the underworld or overworld,to give it direction. In short I shall equate theterm "deep state" with what in 1993 I termed a"deep political system:" " one which habituallyresorts to decision-making and enforcementprocedures outside as well as inside thosepublicly sanctioned by law and society."12

Like myself, Lofgren suggests an ambiguoussymbiosis between two aspects of the Americandeep state:

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1) the Beltway agencies of theshadow government, like the CIAand NSA, which have beeninstituted by the public state andnow overshadow it, and

2) the much older power of WallStreet, referring to the powerfulbanks and law firms located there.

In his words,

It is not too much to say that WallStreet may be the ultimate ownero f t h e D e e p S t a t e a n d i t sstrategies, if for no other reasonthan that it has the money toreward government operativeswith a second career that islucrative beyond the dreams ofavarice - certainly beyond thedreams of a salaried governmentemployee.13

I shall argue that in the 1950s Wall Street wasa dominating complex. It included not justbanks and oil firms but also the oil majorswhose cartel arrangements were successfullydefended against the U.S. Government by theWall Street law firm Sullivan and Cromwell,home to the Dulles brothers. This largercomplex is what I mean by the Wall Streetoverworld.

The Long History of the Wall StreetOverworld

Lofgren's inclusion of Wall Street is in keepingwith Franklin Roosevelt's observation in 1933to his friend Col. E.M. House that "The realtruth … is, as you and I know, that a financialelement in the larger centers has owned theGovernment ever since the days of AndrewJackson."14

FDR's insight is well illustrated by theefficiency with which a group of Wall Streetbankers (including Nelson Rockefeller'sgrandfather Nelson Aldrich and Paul Warburg)were able in a highly secret meeting in 1910 toestablish the Federal Reserve System – asystem which in effect reserved oversight ofthe nation's currency supply and of allAmerica's banks in the not impartial hands ofits largest.15 The political clout of the quasi-governmental Federal Reserve Board (wherethe federal Treasury is represented but doesnot dominate) was clearly demonstrated in2008, when Fed leadership secured instantsupport from the successive administrations ofa Texan Republican president, followed by aMidwest Democratic one, for public money torescue the reckless management of Wall Streetbanks: banks Too Big To Fail, and of course farToo Big To Jail, but not Too Big To Bail.16

Wall Street and the Launching of the CIA

Top-level Treasury officials, CIA officers, andWall Street bankers and lawyers think alikebecause of the "revolving door" by which theypass easily from private to public service andback. In 1946 General Vandenberg, as Directorof Central Intelligence (DCI), recruited AllenDulles, then a Republican lawyer at Sullivanand Cromwell in New York, "to draft proposalsfor the shape and organization of what was tobecome the Central Intelligence Agency in1947." Dulles promptly formed an advisorygroup of six men, all but one of whom wereWall Street investment bankers or lawyers.17

Dulles and two of the six (William H. Jacksonand Frank Wisner) later joined the agency,where Dulles proceeded to orchestrate policies,such as the overthrow of the Arbenz regime inGuatemala, that he had previously discussed inNew York at the Council on Foreign Relations.18

There seems to be little difference in AllenDulles's influence whether he was a Wall Streetlawyer or a CIA director. Although he did notformally join the CIA until November 1950, he

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was in Berlin before the start of the 1948 BerlinBlockade, "supervising the unleashing of anti-Soviet propaganda across Europe."19 In theearly summer of 1948 he set up the AmericanCommittee for a United Europe (ACUE), insupport of what became by the early 1950s "thelargest CIA operation in Western Europe."20

The Deep State and Funds for CIA CovertOperations

Wall Street was also the inspiration for whateventually became the CIA's first covertoperation: the use of "over $10 million incaptured Axis funds to influence the [Italian]election [of 1948]."21 (The fundraising hadbegun at the wealthy Brook Club in New York;but Allen Dulles, still a Wall Street lawyer,persuaded Washington, which at first hadpreferred a private funding campaign, toauthorize the operation through the NationalSecurity Council and the CIA.)22

Dulles's friend Frank Wisner then left WallStreet to oversee an enlarged covert operationsprogram through the newly created Office ofPolicy Co-ordination (OPC). Dulles, still alawyer, campaigned successfully to reconstructWestern Europe through what became knownas the Marshall Plan.23 Together with GeorgeKennan and James Forrestal, Dulles also"helped devise a secret codicil [to the MarshallPlan] that gave the CIA the capability toconduct political warfare. It let the agency skimmillions of dollars from the plan."24

This created one of the earlier occasions whenthe CIA, directly or indirectly, recruited localassets involved in drug trafficking. AFLmember Irving Brown, the assistant of AFLofficial Jay Lovestone (a CIA asset), wasimplicated in drug smuggling activities inEurope, at the same time that he used fundsdiverted from the Marshall Plan to establish

a "compatible left" labor union inMarseilles with Pierre Ferri-Pisani.

On behalf of Brown and the CIA,Ferri-Pisani (a drug smugglerconnected with Marseilles crimelord Antoine Guerini), hired goonsto shellack striking Communistdock workers.25

An analogous funding source for the CIAdeveloped in the Far East: the so-called

"M-Fund," a secret fund of moneyof enormous size that has existedin Japan [in 1991] for more thanfor ty years . The Fund wasestablished by the United States inthe immediate postwar era foressentially the same reasons thatlater gave rise to the Marshall Planof assistance by the U.S. toWestern Europe, including theFederal Republic of Germany…..The M-Fund was used not only forthe building of a democraticpolitical system in Japan but, inaddition, for all of the purposes forwhich Marshall Plan funds wereused in Europe.26

For at least two decades the CIA lavishlysubsidized right-wing parties in countriesincluding Japan and Indonesia, possibly stillusing captured Axis funds.27 (One frequentlyencounters the claim that the source of the M-fund was gold looted by Japan during WorldWar Two ("Yamashita's gold").28

As a general rule the CIA, rather thanassimilating these funds into its own budget,appears to have left them off the books in thehands of cooperative allied powers – rangingfrom other U.S. agencies like the EconomicCooperation Administration (ECA. set up in1948 to administer the Marshall Plan) to oilcompanies to powerful drug kingpins.29

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The CIA never abandoned its dependency onfunds from outside its official budget toconduct its clandestine operations. InSoutheast Asia, in particular, its proprietaryfirm Sea Supply Inc., supplied an infrastructurefor a drug traffic supporting a CIA-ledparamilitary force, PARU.30 The CIA appearsalso to have acted in coordination with slushfunds from various U.S. government contracts,ranging from the Howard Hughes organizationto (as we shall see) the foreign arms sales ofU.S. defense corporations like Lockheed andNorthrop.31

Lockheed Payoffs and CIA Clients: theNetherlands, Japan, Italy, Indonesia, andSaudi Arabia

Kodama Yoshio, war criminal, drugtrafficker, and purveyor of deep state USfunds to Japanese politicians

Through the 1950s payouts from the M-fundwere administered by Kodama Yoshio,"probably the CIA's chief asset in Japan;" while"All accounts say that after the end of theoccupation, the fund's American managerscame from the CIA."32 Kodama also receivedand distributed millions of funds fromLockheed to secure military contracts – anoperation the CIA knew about but has never

admitted involvement in.33 Lockheed's systemof payoffs was world-wide; and one sees CIAinvolvement with it in at least four othercountries: the Netherlands, Italy, Indonesia andSaudi Arabia. (Lockheed, the builder of the U-2,was a major CIA-cleared contractor.)34

The beneficiary in the Netherlands was PrinceBernhard, a close friend of CIA directors WalterBedell Smith and Allen Dulles, and theorganizer of the Bilderberg Group.35 In the caseof Italy, payments were handled through acontact ("Antelope Cobbler") who turned out tobe whoever was the Italian Prime Minister ofthe moment (always from one of the partiessubsidized earlier by the CIA).36

In the revealing instance of Indonesia,Lockheed payments were shifted in May 1965,over the legal objections of Lockheed's counsel,to a new contract with a company set up by thefirm's long-time local agent or middleman,August Munir Dasaad.86 This was just sixmonths after a secret U.S. decision to have theCIA covertly assist

"individuals and organizationsprepared to take obstructive actionagainst the PKI [IndonesianCommunist Party]." Over thelonger term this meant identifyingand keeping tabs on "anti-regimeelements" and other potentialleaders of a post-Sukarno regime.37

Although Dasaad had been a long-timesupporter of Sukarno, by May 1965 he wasalready building connections with Sukarno'seventual successor, Gen. Suharto, via a familyrelative, General Alamsjah, who knew Suhartoand was the beneficiary of the new Lockheedaccount.38 After Suharto replaced Sukarno,Alamsjah, who controlled certain considerablefunds, at once made funds available to Suharto,earning him the gratitude of the newPresident. 3 9

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In July 1965, furthermore, at the alleged nadirof U.S.-Indonesian aid relations, Rockwell-Standard had a contractual agreement todeliver two hundred light aircraft (Aero-Commanders) to the Indonesian Army (not theAir Force) in the next two months. Once againthe commission agent on the deal, Bob Hasanor Hassan, was a political associate (andeventual business partner) of Suharto. Morespecif ical ly , Suharto and Bob Hasanestablished two shipping companies to beoperated by the Central Java army division,Diponegoro. This division, as has long beennoticed, supplied the bulk of the personnel onboth sides of the Gestapu coup drama inSeptember 1965 -- both those staging the coupattempt, and those putting it down.40

While this was happening, Stanvac (a jointventure of the Standard companies known lateras Exxon and Mobil) increased payments to thearmy's oil company, Permina, headed by aneventual political ally of Suharto, General IbnuSutowo. Alamsjah is said to have been alliedwith Ibnu Sutowo in plotting against Sukarno,along with a well-connected Japanese oilman,Nishijima Shigetada.41 After Suharto'soverthrow of Sukarno, Fortune wrote that"Sutowo's still small company played a key partin bankrolling those crucial operations, and thearmy has never forgotten it."42

We shall deal later with the special case ofLockheed kickbacks to Saudi Arabia, whichwere far greater than those to Japan. It isimportant to note, however, the linkagebetween Middle East oil and arms sales: as U.S.imports of Middle East oil increased, thepressure on the U.S. balance of payments wasoffset by increased U.S. arms sales to theregion. "In the period 1963-1974, arms sales tothe Middle East went from 10 per cent of globalarms imports to 36 per cent, half of which wassupplied by the United States."43

Iran in 1953: How an Oil Cartel OperationBecame a Job for the CIA

The international lawyers of Wall Street did nothide from each other their shared belief thatthey understood better than Washington therequirements for running the world. As JohnFoster Dulles wrote in the 1930s to a Britishcolleague,

The word "cartel" has hereassumed the stigma of a bogeymanwhich the politicians are constantlyattacking. The fact of the matter isthat most of these politicians arehighly insular and nationalistic andbecause the political organizationof the world has under suchinfluence been so backward,business people who have had tocope realistically with internationalproblems have had to find ways forgetting through and around stupidpolitical barriers.44

This same mentality also explains why AllenDulles as an OSS officer in 1945 simply evadedorders from Washington forbidding him tonegotiate with SS General Karl Wolff about aconditional surrender of German forces in Italy– an important breach of Roosevelt's agreementwith Stalin at Yalta for unconditional surrender,a breach that is regarded by many as helpinglead to the Cold War.45 And it explains whyAllen, as CIA Director in 1957, dealt summarilywith Eisenhower's reluctance to authorize morethan occasional U-2 overflights of the USSR, bysecretly approving a plan with Britain's MI-6whereby U-2 flights could be authorizedinstead by the UK Prime Minister Macmillan.46

This mentality exhibited itself in 1952, whenTruman's Justice Department sought to breakup the cartel agreements whereby Standard Oilof New Jersey (now Exxon) and four other oilmajors controlled global oil distribution. (Theother four were Standard Oil Company of NewYork, Standard Oil of California or Socony, GulfOil, and Texaco; together with Royal Dutch

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Shell and Anglo-Iranian, they comprised the so-called Seven Sisters of the cartel.) Faced with agovernment order to hand over relevantdocuments, Exxon's lawyer Arthur Dean atSullivan and Cromwell, where Foster wassenior partner, refused: "If it were not for thequestion of national security, we would beperfectly willing to face either a criminal or acivil suit. But this is the kind of information theKremlin would love to get its hands on."47

Wall Street, the former headquarters ofboth Sullivan and Cromwell and the J.Henry Schroder Banking Corporation

At this time the oil cartel was working closelywith the British Anglo-Iranian Oil Company(AIOC, l a ter BP) to prevent A IOC'snationalization by Iran's Premier Mossadeq, by

instituting, in May 1951, a successful boycott ofIranian oil exports.

In May 1951 the AIOC secured thebacking of the other oil majors,who had every i n te res t i ndiscouraging nationalisation....None of the large companies wouldtouch Iranian oil; despite one ortwo picturesque episodes theboycott held.48

As a result Iranian oil production fell from 241million barrels in 1950 to 10.6 million barrels in1952.

This was accomplished by denyingIran the ability to export its crudeoil. At that time, the Seven Sisterscontrolled almost 99% of the crudeoil tankers in the world for suchexport, and even more importantly,the markets to which it wasgoing. 4 9

But Truman declined, despite a direct personalappeal from Churchill, to have the CIAparticipate in efforts to overthrow Mossadeq,and instead dispatched Averell Harriman toTehran in a failed effort to negotiate a peacefulresolution of Mossadeq's differences withLondon.50

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Allen and John Foster Dulles, pillars ofboth the state and the deep state

All this changed with the elect ion ofEisenhower in November 1952, followed by theappointment of the Dulles brothers to beSecretary of State and head of CIA. The JusticeDepartment's criminal complaint against the oilcartel was swiftly replaced by a civil suit, fromwhich the oil cartel eventually emergedunscathed.51

Eisenhower, an open friend of theoil industry…changed the chargesf rom cr im ina l t o c i v i l andtransferred responsibility of thecase from the Department ofJustice to the Department of State– the first time in history that anantitrust case was handed to Statefor prosecution. Seeing as how theSecretary of State was John FosterDulles and the defense counsel forthe oil cartel was Dulles' formerlaw firm (Sullivan and Cromwell),the case was soon as good asdead.52

Thereafter

Cooperative control of the worldmarket by the major oil companiesremained in effect, with varying

degrees of success, until the oilembargo of 1973-74. That thecooperation was more than tacitcan be seen by the fact thatant i trust regulat ions werespecifically set aside a number oftimes during the 1950-1973 period,allowing the major companies tonegotiate as a group with variousMideastern countries, and after itsinception [in 1960], with theOrganizat ion of PetroleumExporting Countries or OPEC.53

Also in November 1952 CIA officials beganplanning to involve CIA in the efforts of MI6and the oil companies in Iran54 -- although itsnotorious Operation TP/AJAX to overthrowMossadeq was not finally approved byEisenhower until July 22, 1953.55

The events of 1953 strengthened the role of theoil cartel as a structural component of theAmerican deep state, drawing on its powerfulconnections to both Wall Street and the CIA.56

(Another such component was the Arabian-American Oil Company or ARAMCO in SaudiArabia, which increased oil production in1951-53 to offset the loss of oil from Iran. Untilit was fully nationalized in 1980, ARAMCOmaintained undercover CIA personnel likeWilliam Eddy among its top advisors.)57 The fiveAmerican oil majors in particular were alsostrengthened by the success of AJAX, as Anglo-Iranian (renamed BP) was henceforth forced toshare 40 percent of the oil from its Iranrefinery with them.

Nearly all recent accounts of Mossadeq'soverthrow treat it as a covert intelligenceoperation, with the oil cartel (when mentionedat all) playing a subservient role. However thechronology, and above all the belated approvalfrom Eisenhower, suggest that it was CIA thatcame belatedly in 1953 to assist an earlier oilcartel operation, rather than vice versa. In

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terms of the deep state, the oil cartel or deepstate initiated in 1951 a process that theAmerican public state only authorized twoyears later. Yet the inevitable bias in academicor archival historiography, working only withthose primary sources that are publiclyavailable, is to think of the Mossadeq tragedyas simply a "CIA coup."

The CIA, Booz Allen Hamilton, and theWall Street Overworld

The "revolving door" also circulates top-levelintelligence officials and the chiefs of thecleared contractors referred to by MikeLofgren as part of the deep state. Tim Shorrockrevealed in 2007 that "about 70 percent of theestimated $60 billion the government spendsevery year on…intelligence" is outsourced toprivate intelligence contractors like Booz, Allen& Hamilton (now Booz Allen Hamilton) andSAIC.58 For example Mike McConnell "wentfrom being head of the National SecurityAgency under Bush 41 and Clinton directly toBooz Allen, one of the nation's largest privateintelligence contractors, then became Bush'sDirector of National Intelligence (DNI), thenwent back to Booz Allen, where he is nowExecutive Vice President." Intelligence officersin government write the non-competitivecontracts for the private corporations that theymay have worked for and may work for again.59

And over the years the "revolving door" hasalso exchanged personnel between Booz Allenand the international oil companies served bythe firm.

The original firm of Booz, Allen, & Hamiltonsplit in 2008 into Booz Allen Hamilton, focusedon USG business, and Booz & Company in NewYork, assuming the old company's commercialand international portfolio. Booz AllenHamilton is majority owned by the privateequity firm the Carlyle Group, noted for itsassociation with political figures like bothpresidents Bush.60

Booz Allen Hamilton Headquarters

Lofgren points to the deep state importance ofBooz Allen Hamilton, 99 percent of whosebusiness dependent on the U.S. government.61

Booz Allen has been linked in the media to NSAever since its employee Edward Snowdendecamped with NSA records. But Booz Allen,one of the oldest and largest of the "clearedcontractors," has been intertwined with theCIA's covert operations since Allen Dullesbecame CIA Director in 1953.62 In the sameyear, Booz Allen began "to take on severaloverseas assignments…: a land-registrationsystem in the Philippines, a restructuring ofEgypt's customs operations and textileindustries, and work for Iran's national oilcompany."63 All three assignments overlappedwith CIA covert ops in 1953, including thePhilippine land distribution program whichEdward Lansdale promoted in order to fight aHuk insurrection, and the CIA's operationTP/AJAX (with Britain's MI6) to rescue theAnglo-Iranian oil company (later BP).64

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Miles Copeland, Jr., ex-CIA, ex-Booz Allen& Hamilton, ex-Khashoggi's private CIA

But the most important CIA-Booz Allencooperation may have been in Egypt. In March1953 Miles Copeland, having resigned from theCIA to join Booz-Allen, "returned to Cairo underwhat was, for all practical purposes, a jointCIA-BA&H mission."65 In addition to offeringmanagement advice to the Egypt iangovernment in general, and to a private textilemill, Miles also gave Nasser advice onestablishing his intelligence service (theMukhabarat), and "soon became his closestWestern advisor" (as well as his top channel tothe USG, more important than either the localUS ambassador or CIA chief)66

Copeland's role with Nasser did not make him ashaper of U.S. policy; his pro-Nasser viewswere largely subordinated to the pro-Britishanti-Nasserism of the Dulles brothers. But they

did establish a bond between Copeland and theEisenhower White House. By 1967, when Nixonwas preparing to run for president, Copelandhad taken a leave of absence from Booz Allen tobecome a prestigious and well-paid consultantfor oil companies.

The CIA, Miles Copeland, and AdnanKhashoggi

In 1966 Copeland, while technically on leavefrom Booz Allen, made close contact withAdnan Khashoggi, a young Arab who was in thecourse of becoming both a "principal foreignagent" of the U.S. and also extremely wealthyon the commissions he earned from Lockheedand other military firms on arms sales to SaudiArabia.67 ("To give some sense of the size of thebusiness, the company acknowledged in themid-1970s that it had provided $106 million incommissions to Khashoggi between 1970 and1975, more than ten times the level ofpayments made to the next most importantconnection, Yoshi [sic] Kodama of Japan."68

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Adnan Khashoggi, shadowy backer ofpoliticians (Time, Jan. 19, 1987)

By Copeland's own account in 1989, thisencounter with Khashoggi "put the two of us ona 'Miles-and-Adnan' basis that has lasted formore than twenty years of business, parties,and a very special kind of political action."69

Copeland adds that

Adnan and I, separately had beencalled on by our respective friendsin Langley [i.e., CIA] to… have anofficial [sic], off-the-recordexchange of ideas on the emergingcrisis in the Middle East, and comeup with suggestions that the tamebureaucrats would like to havemade but couldn't.70

Copeland almost immediately flew to Cairo and

immersed himself in a series of high-level butultimately unsuccessful efforts to forestall whatsoon became the 1967 Six Day Egyptian-IsraeliSix Day War. By his account, his mission,though unsuccessful, gave a "tremendousboost" to his reputation, enabling him "toaccelerate the attempt I had already started toestablish a 'private CIA' by use of confidentialarrangements with politically astute membersof the client companies."71

Copeland's self-promoting claims arecontroversial, and a number of establishmentwri ters have descr ibed his books as"unreliable."72 But eyewitness Larry Kolbcorroborates that Copeland was close toKhashoggi, and that the two of them

had written a white paper…proposing that… rich countries,including not only the UnitedStates but also the Arab oil states,should establish a "Marshall Plan"for all the needy countries of theMiddle East, including Israel.

Rewritten with Kolb's assistance afterconsultation with the Reagan White House, theplan would be backed by a "Mideast PeaceFund" to which "Adnan was pledging a hundredmillion dollars of his own money."73

The proposal failed, partly because of theMiddle East's resistance to negotiatedsolutions, but also partly because by the 1980sKhashoggi was no longer as rich and influentialas he had once been. His function as an agentof influence in the Middle East and elsewherehad been sharply limited after the UnitedStates, by the Corrupt Federal Practices Act of1978, outlawed direct payments by UScorporat ions to foreign individuals .Henceforward the function of bestowing moneyand sexual favors on client politicians passedprimarily from Khashoggi to another CIAconnection, the Bank of Credit and Commerce

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International (BCCI).74 A major shareholder inBCCI was Saudi intelligence chief KamalAdham, Khashoggi's friend and businesspartner and (according to the Senate BCCIReport) "the CIA's former principal contact inthe Arab Middle East."75

What the story of the failed "Mideast PeaceFund" reveals is first, that Khashoggi (likeBCCI after him) was of interest to Washingtonbecause of his ability to negotiate with bothIsrael and Arab countries; and second, thatCopeland and what Copeland called his"private CIA,"76 was in a commanding positionas lead adviser to Khashoggi, while still onunpaid leave from Booz Allen Hamilton.

Khashoggi, the CIA's Asset Edward K.Moss, and Political Corruption

A powerful connection was formed bycombining Copeland's political contacts withKhashoggi's millions. Copeland may have beenresponsible for Khashoggi's inspired choice ofthe under-recognized Edward K. Moss, anotherman with CIA connections, as his p.r. agent inWashington.77

Back in November 1962, the CIA, as part of itsplanning to get rid of Castro, decided to useMoss for the Political Action Group of the CIA'sCovert Action (CA) staff.78 This was more than ayear after the FBI had advised the CIA thatMoss's mistress Julia Cellini and her brotherDino Cellini were alleged to be procurers, while"the Cellini brothers have long been associatedwith the narcotics and white slavery rackets inCuba."79

This FBI report suggests an important sharedinterest between Moss and Khashoggi: sexualcorruption. Just as his uncle Yussuf Yassin hadbeen a procurer of women for King Abdul-Aziz,so Khashoggi himself was said to have "usedsex to win over U.S. executives." The bill forthe madam who supplied girls en masse to hisyacht in the Mediterranean ran to hundreds ofthousands of dollars.80 Khashoggi made a

practice of supplying those he wished toinfluence with dollars as well as sex.

Khashoggi's Superyacht Kingdom 5KR,now owned by Prince Al-Waleed bin Talal

The CIA of course was forbidden to use sex andmoney in this way in the United States, or tomake in the United States the payments toright-wing politicians that characterized itsbehavior in the rest of the world. But no suchprohibition applied to Khashoggi. According toAnthony Summers,

Khashoggi had courted Nixon in1967 by putting a plane at hisdisposal to tour the Middle Eastafter the Six-Day War. Soonafterward, using a proxy, heopened an account at Rebozo's[Bebe Rebozo, Nixon's closeconfidante] in Florida. He did so,he expla ined to Watergateprosecutors, hoping to "curry favorwith Rebozo," to get an entrée tothe man who might becomepresident, and to pursue businessdeals.81

Khashoggi in effect served as a "cutout," orrepresentative, in a number of operationsforbidden to the CIA and the companies he

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worked with. Lockheed, for one, wasconspicuously absent from the list of militarycontractors who contributed illicitly to Nixon's1972 election campaign. But there was no lawprohibiting their official representative,Khashoggi, from cycling $200 million throughthe bank of Nixon's friend Bebe Rebozo.82

(Pierre Salinger heard from Khashoggi that in1972 he had donated $1 million to Nixon,corroborating the often-heard claim thatKhashoggi had brought it in a briefcase toNixon's western White House in San Clemente,and then "forgotten" to take it away.)83

Khashoggi of course did not introduce suchcorruption to American politics; he merelyjoined a milieu where defense companies hadused money and girls for years to win defensecontracts in Washington and Las Vegas.84

Prominent in this practice was Howard Hughes,whom Khashoggi soon joined in internationalinvestments. (After a Senate investigator onKhashoggi's trail registered at the Hughes-owned Sands Hotel in Las Vegas, a blondecame unexpectedly to his hotel room, and said,"I'm here for your pleasure.")85

But Khashoggi's corruption channels andtargets overlapped with those of others withCIA connections. In 1972 it was alleged thatfunds from the Paradise Island casino in theBahamas were being secretly carried to Nixonand his friend Bebe Rebozo, by a casinoemployee. This was Seymour (Sy) Alter, whowas both "a friend of Nixon and Rebozo since1962" and also an associate of Edward Moss'sbrother-in-law Eddie Cellini, the casinomanager at Paradise Island. 86 The funds camefrom the Paradise Island Bridge Company, acompany partly owned by an officer of BenguetInternational, a firm represented in America byPaul Helliwell.87 It is likely that Nixon himselfhad a hidden interest in the Bridge Company,which might explain the revelation throughOperation Tradewinds that a "Richard M.Nixon" (not otherwise identified) had an

account at Helliwell's Castle Bank.88

Three facts point to a deep state interest inwhat might otherwise seem a matter ofpersonal corruption. The first is that PaulHelliwell had set up two companies for the CIA-- CAT Inc. (Later Air America) and SEA SupplyInc . i n Bangkok - - t ha t became theinfrastructure of the CIA's covert operationswith drug-trafficking armies in SoutheastAsia.89 The second is that Paul Helliwell'sbanking partner, E.P. Barry, had been thepostwar head of OSS Counterintelligence (X-2)in Vienna, which oversaw the recovery of SSgold in Operation Safehaven.90 The third is thatfor over four decades persons from Booz AllenHamilton have been among the very smallgroup owning the profitable Paradise IslandBridge Company. (A recent partner in theParadise Island Bridge Company is Booz AllenSenior Vice-President Robert Riegle.)91

The Safari Club today, now the FairmontMount Kenya Safari Club

Moss, Khashoggi, the Safari Club, and theInternational Overworld

The power exerted by Khashoggi and Moss wasnot limited to Khashoggi's access to funds andwomen. By the 1970s, Moss was chairman ofthe elite Safari Club in Kenya, where he invitedKhashoggi in as majority owner.92 The exclusiveproperty became the venue for an alliancebetween intelligence agencies that wished to

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compensate for the CIA's retrenchment in thewake of President Carter's election and SenatorChurch's post-Watergate reforms.93

As former Saudi intelligence chief Prince Turkibin Faisal once told Georgetown Universityalumni,

In 1976, after the Watergatematters took place here, yourintelligence community wasliterally tied up by Congress. Itcould not do anything. It could notsend spies, it could not writereports, and it could not paymoney. In order to compensate forthat, a group of countries gottogether in the hope of fightingCommunism and established whatwas called the Safari Club. TheSafari Club included France,Egypt, Saudi Arabia, Morocco, andIran.94

Prince Turki's candid remarks– "yourintelligence community was literally tied up byCongress. …. In order to compensate for that, agroup of countries got together … andestablished what was called the Safari Club." –made it clear that the Safari Club, operating atthe level of the deep state, was expresslycreated to overcome restraints established bypolitical decisions of the public state inWashington.

Obviously the property owned by Khashoggiand Moss in Kenya should not be confused withthe intelligence operation of the same name.But it would be wrong also to make a radicalseparation between the two: the two menKhashoggi and Moss would appear to be part ofthis supranational intelligence milieu.

Specifically Khashoggi's activities of corruptionby sex and money, after they too weresomewhat curtailed by Senator Church's post-

Watergate reforms, appear to have been takenup by the Bank of Credit and CommerceInternational (BCCI), a bank where Khashoggi'sfriend and business partner Kamal Adham, theSaudi intelligence chief and Safari Clubmember, was a part-owner.95

BCCI on the cover of Time, July 6, 1991.

The Deep State, the Safari Club, and BCCI

The usual account of this super-agency's originis that it was

the brainchild of Count Alexandrede Marenches, the debonair andmustachioed chief of France's CIA.T h e S D E C E ( S e r v i c e d eDocumentation Extérieure et de

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Contre-Espionnage)…. Worried bySoviet and Cuban advances inpostcolonial Afr ica, and byAmerica's post-Watergate paralysisin the field of undercover activity,the swashbuckling Marenches hadcome to Turki's father, King Faisal,with a proposition…. [By 1979]Somali president Siad Barre hadbeen bribed out of Soviet embraceby $75 million worth of Egyptiana r m s ( p a i d f o r … b y S a u d iArabia)…. 9 6

However the well-informed Mahmood Mamdanisees it as the product of Washington's searchfor new proxies after the debacle of the U.S.-South African debacle in Angola in themid-1970s:

Apartheid South Africa wasconfirmed to be a political liability.The recognition only aggravatedthe search for proxies. Its firstsuccess was a regional alliancecalled the Safari Club, put togetherwith the b less ing of HenryKissinger. 9 7

As Kissinger was still Secretary of State whenthe Safari Club was founded, this wouldsuggest that it was an authorized, not a deepstate creation. So would the Club's earlysuccesses that Mamdani cites, especially when

it helped bring about the historicrapprochement between twostrategic American Allies, Egyptand Israel, laying the ground forAnwar al-Sadat's pathbreakingNovember 1977 visit to Jerusalem.The suggestion for the meetingwas first made in a letter fromIsraeli Prime Minister Yitzhak

Rabin to President Sadat, carriedby the Moroccan representative inthe club.98

But after Carter was elected, according toTrento, the Safari Club allied itself withRichard Helms and Theodore Shackley againstthe restrained intelligence policies of JimmyCarter. In Trento's account, the dismissal byW i l l i a m C o l b y i n 1 9 7 4 o f C I Acounterintelligence chief James Angleton,

combined with Watergate, is whatprompted the Safari Club to startworking with [former DCI Richard]Helms [then U.S. 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 "Colbydestroyed counterintelligence. Butbecause Colby was seen byShackley and Helms as havingbetrayed the CIA to Congress, theysimply began working withoutsiders like Adham and SaudiArabia. The tradit ional CIAanswering to the president was anempty vessel having little morethan technical capability."99

Joseph Trento adds that "The Safari Clubneeded a network of banks to finance itsintelligence operations,… With the officialblessing of George Bush as the head of the CIA,Adham transformed… the Bank of Credit andCommerce International (BCCI), into aworldwide money-laundering machine."100

Trento claims also that the Safari Club thenwas able to work with some of the controversialCIA operators who were then forced out of theCIA by Turner, and that this was coordinatedby perhaps the most controversial of them all:

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Theodore Shackley.

Shackley, who still had ambitionsto become DCI, believed thatwithout his many sources andoperatives like [Edwin] Wilson, theSafari Club-operating with [formerDCI Richard] Helms in charge inTehran-would be ineffective. …Unless Shackley took direct actionto complete the privatization ofintelligence operations soon, theSafari Club would not have aconduit to [CIA] resources. Thesolution: create a totally privateintelligence network using CIAassets until President Carter couldbe replaced.101

Kevin Phillips has suggested that Bush onleaving the CIA had dealings with the bankmost closely allied with Safari Club operations:the Bank of Credit and Commerce International(BCCI). In Phillips' words,

After leaving the CIA in January1977, Bush became chairman ofthe executive committee of FirstInternational Bancshares and itsBr i t ish subsid iary , where,according to journalists PeterTruell and Larry Gurwin in their1992 book 'False Profits' [p. 345],Bush 'traveled on the bank's behalfand sometimes marketed tointernational banks in London,including several Middle Easterninstitutions.'102

It is clear moreover that BCCI operations, likeKhashoggi's before them, were marked by theability to deal behind the scenes with both theArab countries and also Israel.103

Khashoggi, Copeland, BCCI, and the Iran-Contra Scandal

Joseph Trento adds that through the Londonbranch of this bank, which Bush chaired,"Adham's petrodollars and BCCI money flowedfor a variety of intelligence operations"104 It isclear moreover that BCCI operations, likeKhashoggi's before them, were marked by theability to deal behind the scenes with both theArab countries and also Israel.105

Khashoggi and BCCI together, moreover, withthe assistance of Miles Copeland, initiated whatwe remember as the Iran-Contra arms scandal.According to Theodore Draper, in hisexhaustive study of Iran-Contra,

A chance encounter betweenAdnan Khashoggi and ManucherGhorbanifar effectively set the Iranaffair in motion. As Khashoggi toldthe story to the French writerMichel Clerc, the meeting tookplace in Hamburg in April 1985.

Draper notes furthermore that the deal sooninvolved three Israelis, Yaacov Nimrodi, Adolph(Al) Schwimmer, and David Kimche, for whom"Khashoggi was no newcomer."Together withIsraeli Defense Minister Sharon, the three had"met with President Nimeiri of the Sudan [inMay 1982] at a safari resort in Kenya owned byKhashoggi"-i.e., the Safari Club.106 ButKhashoggi's connection to Schwimmer wenteven further back: the two men had beenintroduced in Las Vegas by Schwimmer'spartner in gun-running to the infant state ofIsrael, Hank Greenspun.107

Draper's account of the Hamburg meeting failshowever to note that Miles Copeland and hisassistant Larry Kolb were (according to theirown accounts) also present. Copeland writesthat he and Khashoggi met with the Iranianarms dealer Manucher Ghorbanifar, after

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which Copeland wrote up an Iran arms salesproposal. Copeland claims this had nothing todo with either Contras or hostages, but wasintended as a "second paper to McFarlane…asan appendix to the 'Marshall Plan' paper. So faras [Khashoggi} was personally concerned, hewas attracted to [Ghorbanifar's] proposal onlyto the extent to which it could be tied into plansfor over all Middle Eastern peace."108

Copeland's aide Larry Kolb agrees that he,Copeland, Khashoggi, and Schwimmer were allpresent with Ghorbanifar and others at the1985 Hamburg meeting. There, according toKolb, Khashoggi

said that in recent meetings inWashington, he'd been told that ifthe American government wasgoing to part ic ipate in thisventure…it would have to bestructured in such a way that therewould be no trail of arms… leadingfrom the United States to Iran. So,Adnan said… it had been arrangedthat the actual goods could comefrom the Israeli government… andbe transported directly from Israelto Iran….

But arms trading and spare partsand hostages took up very little ofthe conversation that day. Most ofthe time was spent thinking, andtalking,… about a strategicopening between the United Statesand Iran – as a means of bluntingSoviet attempts to dominate thew o r l d ' s t h i r d l a r g e s t o i lproducer. 1 0 9

Later he and Copeland wrote up the meeting ina paper "titled 'Adnan Khashoggi's Views onthe Possibilities of a Strategic InitiativeBetween the United States and Iran'," that"wasn't about an arms deal." They gave it to

Khashoggi to present to McFarlane.

We had no idea then that… monthslater a wild-ass Marine colonelwould force the whole thing outinto the open by stealing Adnan[Khashoggi]'s fifteen-million-dollarbridge loan which funded the saleand sending the money to theNicaraguan Contra rebels.110

The Congressional investigation of the Iran-Contra Affair agrees with Kolb that "Khashoggisuggested that Ghorbanifar try to developaccess to the United States and its armsthrough Israel."111 And the Senate investigationof BCCI also reports:

Both Saudi businessman AdnanKhashoggi and Iranian armsmerchant Manucher Ghorbanifarwere central agents of the UnitedStates in selling arms to Iran in theIran/Contra affair. According to theoff icial chronologies of theI r a n / C o n t r a c o m m i t t e e s ,Khashoggi acted as the middlemanfor five Iranian arms deals for theUnited States, financing a numbero f t h e m t h r o u g h B C C I … .According to his own and otherpublished accounts, he providedsome $30 mi l l i on i n l oansaltogether…. Both Khashoggi andGhorbanifar banked at BCCI'soffices in Monte Carlo, and forboth, BCCI's services wereessential. 1 1 2

Both Ghorbanifar and Khashoggi have beenpresented as mavericks interested in armssales for their own individual profit. Howeverthe participation of Copeland suggests that,once again, what Copeland called "friends in

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Langley" may have been interested in engagingthem in an operation to which both theSecretaries of State and of Defense wereresolutely opposed.

The Deep State and the BCCI Cover-Up

It is clear that for years the American deepstate in Washington was both involved with andprotected BCCI. Acting CIA director RichardKerr acknowledged to a Senate Committee"that the CIA had also used BCCI for certainintelligence-gathering operations."113

Later, a congressional inquiryshowed that for more than tenyears preceding the BCCI collapsein the summer of 1991, the FBI,the DEA, the CIA, the CustomsService, and the Department ofJustice all failed to act on hundredsof tips about the illegalities ofBCCI's international activities.114

Far less clear is the attitude taken by WallStreet banks towards the miscreant BCCI. TheSenate report on BCCI charged however thatthe Bank of England "had withheld informationabout BCCI's frauds from public knowledge for15 months before closing the bank."115

Of course the scope and influence of BCCIreflected changes in the global superstructureof finance since the oil price hikes of the 1970s.A recent study of the dangerously unstableconcentration of ownership in the worldshowed only four recognizable Wall Streetinstitutions among the top twenty: JPMorganChase & Co, the Goldman Sachs Group, Bankof New York Mellon Corp, and Merrill Lynch.116

Of these, Bank of New York, the bank heavilyinvolved in the 1990s looting of Russia,interlocked with BCCI through the Swissbanking activities of the international bankerBruce Rappaport, "thought to have ties to USand Israeli intelligence." (Alfred Hartmann, a

board member of BCCI, was both vice-chairmanof Rappaport's Swiss bank, Bank of New York-Intermaritime, and also head of BCCI's Swisssubsidiary, the Banque de Commerce et dePlacements).117 The mysterious E.P. Barry, theOSS veteran who had overseen the recovery ofSS gold in Operation Safehaven beforebecoming the banking partner of PaulHelliwell, was also a major stockholder inRappaport's Inter Maritime Bank.)118

The collapse of BCCI in 1991 did not see an endto systematic Saudi-financed politicalcorruption in the U.S. and elsewhere. After aproposed major arms sale in the 1980s metenhanced opposition in Congress from theIsraeli lobby, Saudi Arabia negotiated a multi-billion pound long-term contract with theUnited Kingdom – the so-called al-Yamamahdea l . I t deve loped much l a te r tha toverpayments for the purchased weapons weresiphoned off into a huge slush fund for politicalpayoffs, including "hundreds of millions ofpounds to the ex-Saudi ambassador to the US,Prince Bandar bin Sultan."119 According toRobert Lacey, the payments to Prince Bandarwere said to total one billion pounds over morethan a decade, including "a suitcase containingmore than $10 million" that went to a Vaticanpriest for the CIA's long-time clients, theChristian Democratic Party.120 The money wentthrough a Saudi Embassy account in the RiggsBank, Washington; according to Trento, theEmbassy's use of the Riggs Bank dated back tothe mid-1970s, when, in his words, "the Saudiroyal family had taken over intelligencefinancing for the United States."121

As we saw earlier. the CIA had "laundered over$10 million in captured Axis funds to influencethe [Italian] election [of 1948]."122 Thesepractices, in other words, survived the legalefforts to end them.

Conclusion: A Supranational Deep State

The complex milieu of Khashoggi, the BCCI,

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and the Safari Club can be characterized as asupranational deep state, whose organic linksto the CIA may have helped consolidate it. It isclear however that decisions taken at this levelby the Safari Club and BCCI were in no wayguided by the political determinations of thoseelected to power in Washington. On thecontrary, Prince Turki's candid remarksrevealed that the Safari Club (with the allegedparticipation of two former CIA Directors, Bushand Helms) was expressly created to overcomerestraints established by political decisions inWashington.

A former Turkish president and prime ministeronce commented that the Turkish deep statewas the real state, and the public state wasonly a "spare state," not the real one.123 Abetter understanding of the American deepstate is necessary, if we are to prevent it fromassuming permanently the same role.

Peter Dale Scott, a former Canadian diplomatand English Professor at the University ofCalifornia, Berkeley, is the author of Drugs Oila n d W a r(http://amzn.com/0742525228?tag=theasipacjo0 b - 2 0 ) , T h e R o a d t o 9 / 1 1(http://amzn.com/0520237730?tag=theasipacjo0b-20), and The War Conspiracy: JFK, 9/11, andt h e D e e p P o l i t i c s o f W a r(http://amzn.com/0980121361?tag=theasipacjo0b-20). His most recent book is American WarMachine: Deep Politics, the CIA Global DrugConnection and the Road to Afghanistan(http://amzn.com/0742555941?tag=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(http://www.peterdalescott.net/q.html).

Recommended Citation: Peter Dale Scott, "TheState, the Deep State, and the Wall StreetOverworld," The Asia-Pacific Journal, Volume12, Issue 10, No. 5, March 10, 2014.

Notes

1 Dana Priest and William Arkin, Top Secret

America: The Rise of the New AmericanSecurity State (New York: Little Brown, 2011),52.

2 E.g. Marc Ambinder and D.G. Grady, DeepState: Inside the Government Secrecy Industry(New York: Wiley, 2013); cf. John Tirman, "TheQ u i e t C o u p : N o , N o t E g y p t . H e r e(http://www.huffingtonpost.com/john-tirman/nsa - d e e p - s t a t e _ b _ 3 5 6 9 3 1 6 . h t m l ) , "HuffingtonPost, July 9, 2013: "Now we know:the United States of America is partiallygoverned by a deep state, undemocratic,secret, aligned with intelligence agencies,spying on friend and foe, lawless in almostevery respect."

3 Mike Lofgren, "A Shadow GovernmentC o n t r o l s A m e r i c a(http://readersupportednews.org/opinion2/277-75/22216-a-shadow-government-controls),"Reader Supported News, February 22, 2014.

4 Grant Barrett, "A Wordnado of Words in 2013(http://www.nytimes.com/2013/12/22/opinion/su n d a y / a - w o r d n a d o - o f - w o r d s -in-2013.html?emc=eta1&_r=0)," New YorkTimes, December 21, 2013.

5 Peter Dale Scott, Deep politics and the deathof JFK (Berkeley: University of California Press,1998), 7.

6 "Tom Hayden discussing the crisis inV e n e z u e l a(http://www.tikkun.org/tikkundaily/2014/02/28/tom-hayden-on-venezuelas-current-crisis/),"Tikkun, February 25, 2014.

7 To take a single telling example, six of SamWalton's heirs are now reportedly wealthierthan the bottom 30% of Americans, or 94.5million people (Tim Worstall, "Six Waltons HaveMore Wealth Than the Bottom 30% ofA m e r i c a n s(http://www.forbes.com/sites/timworstall/2011/12/14/six-waltons-have-more-wealth-than-the-bottom-30-of-americans/)," Forbes, December

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14, 2011). Cf. the devastating picture of adisintegrating America in George Packer, TheUnwinding: An Inner History of the NewAmerica (New York: Farrar, Straus and Giroux,2013).

8 See Kevin Phillips, The politics of rich andpoor: wealth and the American electorate in theReagan aftermath (New York: HarperCollins,1991). Cf. John T. Stinson, The Reagan Legacy(Bloomington, IN: iUniverse, 2009), 146;Timothy Noah, The great divergence: America'sgrowing inequality crisis and what we can doabout it (New York: Bloomsbury, 2012).

9 For the impact of railroads on expanded socialawareness, see Benedict Anderson, Imaginedcommunities: reflections on the origin andspread of nationalism (London: Verso, 1991).

1 0 " W h a t i s t h e D e e p S t a t e ?(http://www.onreligion.co.uk/what-is-the-deep-state/)" On Religion [2013].

11 Gareth Jenkins, "Susurluk and the Legacy ofT u r k e y ' s D i r t y W a r(http://www.jamestown.org/terrorism/news/article.php?articleid=2374142)," TerrorismMonitor, May 1, 2008; quoted in Peter DaleScott, "9/11, Deep State Violence and the Hopeo f I n t e r n e t P o l i t i c s ,(http://www.globalresearch.ca/9-11-deep-state-violence-and-the-hope-of-internet-politics)"Global Research, June 11, 2008. For theSusurluk incident, see also Scott, AmericanWar Machine, 19-20, etc.

12 Scott, Deep Politics and the Death of JFK, xi-xii.

13 Lofgren, " A Shadow Government ControlsAmerica."

14 Quoted in Peter Dale Scott, The Road to 9/11:Wealth, Empire, and the Future of America, 1.

15 Forbes magazine founder Bertie CharlesForbes wrote six years later: "Picture a party of

the nation's greatest bankers stealing out ofNew York on a private railroad car under coverof darkness, stealthily riding hundred[s] ofmiles South, embarking on a mysteriouslaunch, sneaking onto an is land [theappropriately named Jekyll Island] deserted byall but a few servants, living there a full weekunder such rigid secrecy that the names of notone of them was once mentioned, lest theservants learn the identity and disclose to theworld this strangest, most secret expedition inthe history of American finance. I am notromancing; I am giving to the world, for thefirst time, the real story of how the famousAldrich currency report, the foundation of ournew currency system, was written (B.C. Forbes,Leslie's Weekly, October 19, 1916; in T.Cushing Daniel, Real money versus falsemoney-bank credits; the most important factorin civilization and least understood by thepeople [Washington, D.C., The Monetaryeducational bureau, 1924], 169; cf. B.C.Forbes, Men who are making America [NewYork: Forbes Publishing Co., 1922], 398; cf. G.Edward Griffin, The Creature from JekyllIsland: A Second Look at the Federal Reserve[Westlake Village, CA: American Media, 1994]).Paul Warburg later wrote that "Thougheighteen years have since gone by, I do not feelfree to give a description of this mostinteresting conference, concerning whichSenator Aldrich pledged all participants tosecrecy" (Paul Warburg, The Federal ReserveSystem: Its Origin and Growth [New York,Macmillan, 1930], ZZ).

1 6 Congress was persuaded to provideperfunctory support of the bailout, under analleged mysterious threat of martial law. SeePeter Dale Scott, "Martial Law, the FinancialB a i l o u t , a n d W a r(http://www.globalresearch.ca/index.php?context=va&aid=11681)," Global Research, January8, 2009; reprinted in Michel Chossudovsky andAndrew Gavin Marshall, eds., The GlobalEconomic Crisis: The Great Depression of theXXI Century (Montreal, Global Research

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Publ ishers . Centre for Research onGlobalization, 2010), 219-40; Llewellyn H.Rockwell, Jr., "Sen. Inhofe: [Henry] Paulsen[Secretary of the Treasury and former ChiefExecutive Off icer of Goldman Sachs]Threatened Martial Law To Pass Bailout(http://www.lewrockwell.com/lrc-blog/sen-inhofe-paulsen-threatened-martial-law-to-pass-bailout/)," LewRockwell.com, November 20,2008.

17 Richard Helms with William Hood A look overmy shoulder: a life in the Central IntelligenceAgency (New York: Random House, 2003),82-83. Cf. Scott, American War Machine, 26-28.

18 Laurence H Shoup and William Minter,Imperial brain trust: the Council on ForeignRelations and United States foreign policy(New York: Monthly Review Press, 1977).

19 Gordon Thomas, Secret Wars: One HundredYears of British Intelligence Inside MI5 andMI6 (New York: Thomas Dunne Books/ St.Martin's Press, 2009), 98. This may haveoccurred during Dulles's visit to Europe in thespring of 1947 (James Srodes, Dulles: Master ofSpies [Washington: Henry Regnery, 1999],392).

20 Richard Aldrich, The Hidden Hand: Britain,America, and Cold War secret intelligence(Woodstock, NY: Overlook Press, 2001), 343.Dulles also chaired the executive committee ofthe companion National Committee for a FreeEurope (behind the Iron Curtain), whose legalaffairs were handled by Sullivan and Cromwell(Wilson D. Miscamble, George F. Kennan andthe Making of American Foreign Policy,1947-1950 (Princeton, NJ: Princeton UniversityPress, 1992), 204.

21 Amy B. Zegart, Flawed by Design: TheEvolution of the CIA, JCS, and NSC (Stanford:Stanford UP, 1999), 189; citing ChristopherAndrew, For the President's Eyes Only (NewYork: HarperCollins, 1995), 172; see alsoChurch Committee, Final Report, Book 4,

28-29.

2 2 David Wise and Thomas B. Ross, TheEspionage Establishment (New York: RandomHouse, 1967), 166; Scott, Road to 9/11, 13.

23 "In January 1946 Dulles outlined in somedetail a reconstruction plan that is one of theearliest notions of what would, a year later, beknown as the Marshall Plan" (Srodes, AllenDulles: Master of Spies, 374).

24 Tim Weiner, Legacy of ashes: the history ofthe CIA (New York: Doubleday, 2007), 28.

25 Douglas Valentine, "The French ConnectionRevisited: The CIA, Irving Brown, and DrugS m u g g l i n g a s P o l i t i c a l W a r f a r e(http://www.covertaction.org/content/view/99/75/)," Covert Action.

2 6 Norbert Schlei , " Japan's 'M-Fund'M e m o r a n d u m , J a n u a r y 7 , 1 9 9 1(http://www.jpri.org/publications/workingpapers/wp11.html)," JPRI [Japan Policy ResearchInstitute] Working Paper No. 11: July 1995:"Incident to the revision of the Security Treaty[in 1960], Vice President Nixon agreed to turnover exclusive control of the M-Fund to Japan.It has been alleged that this action by Nixonwas part of a corrupt political bargain, wherebyit was agreed that if Japan would assist him tobecome President of the United States, Nixonwould agree to release control of the Fund toJapan and, if he became President, wouldreturn Okinawa to Japan."

27 "C.I.A. Spent Millions to Support JapaneseRight in 50's and 60's," New York Times,October 9, 1994. Cf. Scott, American WarMachine, 93-94, 298-99; citing ChalmersJohnson, "The 1955 System and the AmericanConnection: A Bibliographic Introduction(http://www.jpri.org/publications/workingpapers/wp11.html)," JPRI [Japan Policy ResearchInstitute] Working Paper No. 11: July 1995.

28 Sterling Seagrave and Peggy Seagrave, Gold

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warriors: America's secret recovery ofYamashita's gold (London: Verso, 2003). Cf.Richard Hoyt, Old Soldiers Sometimes Lie(New York: Forge, 2002), 80.

29 Scott, American War Machine, 94, etc.

30 Scott, American War Machine,

31 Norman Mailer, "A Harlot High and Low:Reconnoi ter ing Through the SecretGovernment," New York, August 16, 1976(Hughes); Michael Schaller, Altered states: theUnited States and Japan since the occupation(New York: Oxford University Press, 1997), 294(Lockheed).

32 Johnson, "The 1955 System and the AmericanConnection."

33 David E. Kaplan and Alec Dubro, Yakuza:Japan's Criminal Underworld (Berkeley:University of California Press, 2003), 89-90. Cf.Jonathan Marshall, in William O. Walker, III,ed., Drug control policy: essays in historicaland comparative perspective (University Park,PA: Pennsylvania State University Press, 1992),108:

"Yoshio Kodama's fortune, built of profits fromtungsten and opium, established the party thattoday rules Japan…. Kodama contributed to thepervasive corruption of Japanese politics bysteering huge corporate contributions into thecoffers of favored LDP members. This patternculminated in the Lockheed scandal, whichrevealed that multi-million-dollar payoff byAmerican aerospace firms had swayed keyprocurement decisions by Japan's nationalairline and defense establishment and raisedthe possibility that the CIA had used Kodamaand corporate funds to influence Japanesepolitics. The money-laundering channel usedfor Lockheed's bribes was favored both by theCIA and international drug traffickers."

34 Thomas Fensch, ed. The C.I.A. and the U-2Program: 1954-1974 (The Woodlands, TX: New

Century Books, 2001).

35 William D. Hartung, Prophets of war:Lockheed Martin and the making of themilitary-industrial complex (New York: NationBooks, 2011), 121; David Boulton, The GreaseMachine (New York: Harper & Row, 1978), 97(friends).

36 Andrew Feinstein, The shadow world: insidethe global arms trade (New York: Farrar,Straus and Giroux, 2011), 265; AnthonySampson, The Arms Bazaar (New York: Viking,1977), 135-36.

37 Bradley R. Simpson, Economists with guns:authoritarian development and U.S.-Indonesianrelations, 1960-1968 (Stanford: StanfordUniversity Press, 2008), 142;

quoting from CIA, "Political Action Project,",November 19, 1964; FRUS, 1964-1968,26:181-84.

38 In addition there was "a US deal to deliver200 light aircraft to the Indonesian Army in July1965." The aircraft went to the army'sDiponegoro division, which " as well assupplying the bulk of the [September 30]"coup" personnel in Java, … also provided thebulk of the personnel for its suppression"(Nathaniel Mehr, Constructive bloodbath' inIndonesia: the United States, Britain and themass killings of 1965-66 [Nottingham:Spokesman Books, 2009], 36).

39 Peter Dale Scott, "The United States and theOver th row o f Sukarno , 1965 -1967(http://www.namebase.rorg/scott.html)," PacificAffairs, 58, Summer 1985; citing

United States. Congress. Senate. Committee onForeign Relations, Multinational corporationsand United States foreign policy, hearingsbefore the Subcommittee on MultinationalCorporations (Washington: U.S. Govt. PrintingOffice, 1973-1976), Part 12, 937-65.

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40 Scott, "The United States and the Overthrowof Sukarno."

41 Masashi Nishihara, The Japanese andSukarno's Indonesia: Tokyo-Jakarta relations,1951-1966 (Honolulu: University Press ofHawaii, 1976), 171, 194, 202; Scott, "TheUnited States and the Overthrow of Sukarno."

42 Fortune, July 1973, 154, cf. Wall StreetJournal, April 18, 1967.

43 John Dumbrell and Axel R Schäfer (eds.),America's 'special relationships': foreign anddomestic aspects of the politics of alliance(London: Routledge, 2009), 187.

44 John Foster Dulles to Lord McGowan,Chairman of Imperial Chemical Industries; inNancy Lisagor and Frank Lipsius, A law untoitself: the untold story of the law firm ofSullivan & Cromwell (New York: Morrow,1988), 127.

45 Charles T. O'Reilly, Forgotten Battles: Italy'sWar of Liberation, 1943-1945 (Lanham, MD:Lexington Books, 2001), 288; Peter Dale Scott,"How Allen Dulles and the SS Preserved EachOther," Covert Action Information Bulletin, 25(Winter 1986), 4-14. Dulles's plans to use SSresources in post-war Germany cab be seen aspart of a successful plan to frustrate theimplementation of Roosevelt's so-calledMorgenthau Plan to deindustrialize Germany.

46 Stephen Dorril, MI6, 659-660.

47 Ovid Demaris, Dirty Business: The Corporate-Political Money-Power Game (New York: Avon,1974), 213-14.

48 J.P.D. Dunbabin, International relations since1945 : a history in two volumes

(London: Longman, 1994), Vol 2, 344. Theboycott is denied without argumentation inExxon's corporate history (Bennett H. Wall etal., Growth in a changing environment: a

history of Standard Oil Company (New Jersey),Exxon Corporation, 1950-1975 (New York:McGraw-Hill, 1988), Vol. 4, 476: "Despite oft-printed statements to the contrary, the oilmajors did not conspire to boycott NIOC oil."

49 Robert Palmer Smith, Darkest truths of blackgold: an oil industry executive breaks theindustry's code of silence (New York: iUniverse,2007), 256. In July 1952 Mossadeq attemptedto break the embargo by contracting to sell oilto a small private Italian oil f irm. Themanoeuver was frustrated by the British RoyalNavy, which in July 1952 intercepted the Italiantanker Rose Mary and redirected it to Aden.The news dissuaded other tankers from tryingto reach Abadan (Mary Ann Heiss, Empire andNationhood: The United States, Great Britain,and Iranian Oil, 1950-1954 [New York:Columbia University Press, 1997], 130;Stephen Kinzer, All the Shah's men: anAmerican coup and the roots of Middle Eastterror [Hoboken, NJ: John Wiley & Sons, 2003],136).

50 Mostafa Elm, Oil, Power, and Principle: Iran'sOil Nationalization and Its Aftermath(Syracuse, NY: Syracuse University Press,1992), 198-99 (Churchill); Robert Moskin,American Statecraft: The Story of the U.S.Foreign Service (New York: Thomas DunneBooks/ St. Martin's Press, 2013), 627-28(Harriman).

51 Demaris, Dirty Business, 214-25: "Theincoming Eisenhower Administration… quicklydropped the criminal case. The civil suit thatwas instituted alleged that the five American oilcompanies violated the Sherman Antitrust andthe Wilson Tariff Acts by conspiring to divideand contro l fore ign product ion anddistribution…. An inadequate staff wasassigned to the case and the action finallypetered out a decade later with a couple ofmeaningless consent decrees."

52 Robert Sherrill, The oil follies of 1970-1980:

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how the petroleum industry stole the show (andmuch more besides) (Garden City, NY: AnchorPress/Doubleday, 1983), 221).

5 3 Will iam R. Freudenburg and RobertGramling, Oil in troubled waters: perceptions,politics, and the battle over offshore drilling(Albany : State University of New York Press,1994); 17; citing Shukri Mohammed Ghanem,OPEC, the Rise and Fall of an Exclusive Club(London : KPI, 1986); Mira Wilkins, "The OilCompanies in Perspective," in Raymond Vernon(ed.), The Oil Crisis (New York: Norton, 1976).

54 William Roger Louis, "Britain and theOverthrow of Mossadeq," in Mark J .Gasiorowski and Malcolm Byrne (eds.),Mohammad Mosaddeq and the 1953 coup inIran (Syracuse: Syracuse University Press,2004), 168. Cf. William R. Clark, Petrodollarwarfare: oil, Iraq and the future of the dollar(Gabriola Island, B.C.: New Society Publishers,2005), 125: "[T]he Dulles brothers had alreadyconceived a plot when Eisenhower becamepresident in January 1953."

55 Scot Macdonald, Rolling the iron dice :historical analogies and decisions to usemilitary force in regional contingencies(Westport, CT: Greenwood Press, 2000), 98. Cf.Richard H. Immerman, John Foster Dulles:Piety, Pragmatism, and Power in U.S. ForeignPolicy (Wilmington, DE: Scholarly Resources,1999), 67. Allen Dulles played a personal rolein TP/AJAX, by flying to Italy and persuadingthe frightened Shah to return to Tehran.

56 In the past, wishing to dissociate the term"deep state" from organizational connotations, Ihave written of the American "deep state" as "amilieu both inside and outside government withthe power to steer the history of the publicstate and sometimes redirect it" ("WilliamPawley, the Kennedy Assassination, andW a t e r g a t e(http://www.globalresearch.ca/william-pawley-the-kennedy-assassination-and-watergate-tilt-

and-the-phase-three-story-of-clare-boothe-luce/5313486)," Global Research, November29, 2012. But because there are extra-governmental structural components to thedeep state, it might be better to think of it asnot just a milieu, but more analogous to anoligopolistic market.

57 See Chalmers A Johnson, The Sorrows ofEmpire: Militarism, Secrecy, and the End of theRepublic (New York: Metropolitan Books,2004), 218-19; Timothy Mitchell, CarbonDemocracy: Political Power in the Age of Oil(New York: Verso Books, 2011), 212.

58 Tim Shorrock, Spies for Hire (New York:Simon & Schuster, 2008), 6.

59 Glenn Greenwald, "Mike McConnell, theWashPost & the dangers of sleazy corporatism(http://www.salon.com/2010/03/29/mcconnell_3/)," Salon, March 29, 2010.

60 George H. W. Bush was an adviser to Carlyle,which in its early days "backed a management-led buyout of Caterair and appointed George WBush to the board" (Jamie Doward, "Bush Sr'sCarlyle Group Gets Fat On War And Conflict(http://www.rense.com/general36/fat.htm),"The Observer, March 25, 2003.)

61 Lofgren, " A Shadow Government ControlsAmerica."

62 Booz Allen Hamilton's headquarters is now inMcLean, Virginia, close to the HQ of the CIA.

63 Art Kleiner, Booz Allen Hamilton: HelpingC l i e n t s E n v i s i o n t h e F u t u r e(http://www.boozallen.com/media/file/90th-History-Book-Complete.pdf), (Old Saybrook, CT:Greenwich Publishing, 2004), 43.

64 John Prados, Safe for Democracy: The SecretWars of the CIA (Chicago: Ivan R. Dee, 2006.),139. Cf. Christine N. Halili, Philippine History(Mani la: Rex Book Store, 2004), 258(Philippines land distribution).

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65 Miles Copeland, The Game Player: theconfessions of the CIA's original politicaloperative (London: Aurum Press, 1989), 158.

66 Ephraim Kahana and Muhammad Suwaed,Historical dictionary of Middle Easternintelligence (Lanham, MD: Scarecrow Press,2009), 65 {"advisor"); Jack O'Connell, King'sCounsel: A Memoir of War, Espionage, andDiplomacy in the Middle East, (New York :W.W. Norton & Co., 2011), 20 (channel).

67 The BCCI Affair: BCCI, the CIA and ForeignIntelligence, Report to the U.S. SenateCommittee on Foreign Relations by John Kerryand Hank Brown, December 1992; 102ndCongress, 2nd Session, Senate Print 102-140("agent").

68 William D. Hartung, Prophets of war:Lockheed Martin and the making of themilitary-industrial complex (New York: NationBooks, 2011), 126.

69 Copeland, The Game Player, 231.

70 Copeland, The Game Player, 233.

71 Copeland, The Game Player, 239.

72 E.g. Evan Thomas, The Very Best Men: FourWho Dared: The Early Years of the CIA

(New York: Simon & Schuster, 1995), 380.

73 Larry J. Kolb, Overworld: The Life and Timeso f a R e l u c t a n t S p y [ N e w Y o r k :Riverhead/Penguin, 2004], 237-38. Cf.Copeland, The Game Player, 230, 262-63;Ronald Kessler, The Richest Man in the World:The Story of Adnan Khashoggi (New York:Warner Books), 300-01: "[O]n May 17, 1983,[Khashoggi] submitted to President Reagan aconfidential 'yellow paper' [which] proposed aneconomic aid program similar to the 1949Marshall Plan developed by the U.S. forEurope. Called a Peace Fund, it would provideup to $300 billion in regional economic aid

from the U.S., Saudi Arabia and Kuwait toIsrael and any Arab country that signed a peacetreaty with it."

74 Peter Dale Scott, "Deep Events and the CIA'sG l o b a l D r u g C o n n e c t i o n(http://www.911truth.org/deep-events-and-the-cias-global-drug-connection/)," 911truth.org,October 12, 2008; American War Machine,160-65.

7 5 " T h e B C C I A f f a i r(https://www.fas.org/irp/congress/1992_rpt/bcci/11intel.htm)." Khashoggi's status had declined,but by no means vanished. As late as 2003,Khashoggi was negotiating with Richard Perle,a member of the Cheney-Rumsfeld clique whoat the time was still Chairman of the U.S.Defense Policy Board, to invest considerableSaudi money in Perle's company Trireme(Seymour Hersh, New Yorker, 3/17/03).

76 Copeland, Game Player, 239; cf. 2128.

77 Kessler, The Richest Man in the World, 84,188, etc.; Scott, American War Machine,158-62.

78 "Moss, Edward K. #172 646," CIA Memo of19 April 1967, NARA #104-10122-10006; CIAInspector General's Report on CIA-Mafia Plotsto Assassinate Fidel Castro, NARA #104-10213-10101, p. 38. Cf. memo of 7November 1962 in CIA's Edward K. Mossf o l d e r , p . 2 6 , N A R A#1994.05.03.10:54:53:780005.

79 "Manuel Antonio Varona," FBI Memorandumof January 16, 1961 to A. H. Belmont, p. 2,105-76826-20; NARA #124-90055-10139. Cf."Moss, Edward K. #172 646," CIA Memo of 14May 1973, in Meyer Lansky Security File, p. 9,NARA #1993.08.13.17:42:12:560059; CIAletter of 16 December 1960 to FBI, FBI file105-76826-18; NARA #124-90055-10133. TheCIA itself had notified the FBI on December 16,1960, that Julia "Cellino" had advised that herbrothers "have long been associated in the

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narcotics and white slavery rackets in Cuba(CIA letter of 16 December 1960 to Director,FBI , FBI F i l e 105 -76826 -18 ; NARA#124-90055-10133; apparently no copy of thisletter has been released from CIA files).

80 Kessler, Richest Man in the World, 29(Yassin), 275–78 (Khashoggi). A friend ofKhashoggi's, Larry Kolb, reports thatKhashoggi himself essentially corroborated thestory that Khashoggi and John Kennedy had afriendship in the 1950s that "evolved primarilyout of whoring together" (Larry J. Kolb,Overworld: The Life and Times of a ReluctantSpy [New York: Riverhead/Penguin, 2004],236) . The woman who destroyed thepresidential aspirations of Senator Gary Hart in1987 was one of Khashoggi's many girls.

81 Anthony Summers with Robbyn Swan, TheArrogance of Power: The Secret World ofRichard Nixon (New York: Viking, 2000), 283.Cf. Kessler, The Richest Man in the World, 171:Khashoggi told the prosecutors "that hechurned millions through the tiny [Rebozo]bank to win favor with the president."

82 Investigative reporter Jim Hougan reports theincredulity of congressional investigators thatLockheed was the only large corporation not tohave made a contribution to Nixon's 1972election campaign (Hougan, Spooks, 457–58.

83 Scott, Road to 9/11, 35; citing Summers,Arrogance of Power, 283; Robert Baer,Sleeping with the Devil (New York: Crown,2003), 43. (Baer reports the year of thebr ie f case as 1968 , no t 1972 . ) Ko lb("unequivocal ly , and from personalexperience") denies the briefcase story(Overworld, 299).

84 Scott, Deep politics and the death of JFK,234-39.

85 Kessler, Richest Man in the World, 129,160-61. When Hughes flew from Las Vegas tothe Paradise Island casino in the Bahamas

(where Edward Moss's brother-in-law EddieCellini was casino manager, he did so on aKhashoggi plane. (Kessler, Richest Man,149-50).

86 Summers with Swan, The Arrogance ofPower, 242, 252; Jim Hougan, Spooks, 398. Cf.Denny Walsh, New York Times, January 21,1974; Gerth, in Government by Gunplay,137-39.

87 Block, Masters of Paradise, 94-96; Summerswith Swan, The Arrogance of Power, 244-45.Benguet Mines have also been associated withYamashita's gold (Seagrave, Gold Warriors,147; Scott, American War Machine, 322n15).

88 Summers with Swan, The Arrogance ofPower, 244-45, 253-54.

89 Scott, American War Machine, 71-72. Cf.Wall Street Journal, April 18, 1980: "In 1951,Mr. Helliwell helped set up and run Sea SupplyCorp., a concern controlled by the CIA as afront. For almost 10 years, Sea Supply wasused to supply huge amounts of weapons andequipment to 10,000 Nationalist Chinese [KMT]troops in Burma as well as to Thailand'spolice."

90 In the course of Operation Safehaven, theU.S. Third Army took an SS major "on severaltrips to Italy and Austria, and, as a result ofthese preliminary trips, over $500,000 in gold,as well as jewels, were recovered" (AnthonyCave Brown, The Secret War Report of the OSS[New York: Berkeley, 1976], 565-66).

91 Who's who in Finance and Industry, MarquisWho's Who, 1979, 568.

92 Kessler, Richest Man in the World, 238-41;Scott, American War Machine, 161-62.

93 The operation kept the name "Safari Club"even after moving from Khashoggi's Club to apermanent headquarters in Cairo.

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94 Ibrahim Warde, The price of fear: the truthbehind the financial war on terror (Berkeley:University of California Press, 2007), 133. Cf.Lacey, Inside the Kingdom, 66, 72, 76.

95 Christopher Byron, "The Senate look atBCCI," New York Magazine, October 28, 1991,20–21.

96 Lacey, Inside the Kingdom, 66. Cf. JohnCooley, Unholy Wars (London: Pluto Press,1999), 24-27.

97 Mahmood Mamdani, Good Muslim, badMuslim: America, the Cold War, and the rootsof terror (New York: Pantheon Books 2004), 84.

98 Mamdani, Good Muslim, bad Muslim, 85.

99 Joseph J. Trento, Prelude to terror: the rogueCIA and the legacy of America's privateintelligence network (New York: Carroll & Graf,2005), 61.

100 Trento, Prelude to terror, 104-05. KevinPhillips also notes that "Bush cemented strongrelations with the intelligence services of bothSaudi Arabia and the shah of Iran. He workedclosely with Kamal Adham, the head of Saudiintelligence" (Kevin Phillips, "The BarrellingBushes," Los Angeles Times, January 11, 2004).

101 Trento, Prelude to terror, 113-14.

102 Phillips, "The Barrelling Bushes," LosAngeles Times, January 11, 2004.

1 0 3 There is no published evidence thatCopeland was involved in the Safari Clubcovert operations. But it may be significant thatCopeland's activity of advising the EgyptianArmy became after the creation of the SafariClub a franchise of a "private" U.S. firm, J.J.Cappucci and Associates, owned by TheodoreShackley (Trento, Prelude to Terror, 150, 247).

104 Trento, Prelude to Terror, 139.

1 0 5 There is no published evidence thatCopeland was involved in the Safari Clubcovert operations. But it may be significant thatCopeland's activity of advising the EgyptianArmy became after the creation of the SafariClub a franchise of a "private" U.S. firm, J.J.Cappucci and Associates, owned by TheodoreShackley (Trento, Prelude to Terror, 150, 247).

106 Theodore Draper, A Very Thin Line (NewYork: Hill and Wang, 1991), 129, 131. Cf. DanRaviv and Yossi Melman, Every spy a prince:the complete history of Israel's intelligencecommunity (Boston: Houghton Mifflin, 1990),261; Mayn Katz, Song of Spies (HeliographicaPress, 2005) 136-37.

1 0 7 Samuel Segev ; translated by HaimWatzman, The Iranian triangle : the untoldstory of Israel's role in the Iran-Contra (NewYork: The Free Press, 1988), 10. For thecollaboration of Greenspun, Schwimmer andMeyer Lansky in gun-running, see LeonardSlater, The Pledge (New York, Simon andSchuster, 1970). Paul Helliwell may have beenpart of this operation; see Scott, American WarMachine, 71, 164.

108 Copeland, The Game Player, 263.

109 Kolb, Overworld, 246.

110 Kolb, Overworld, 247.

1 1 1 I ran-Contra Af fa ir , Report of thecongressional committees investigating theIran-Contra Affair (U.S. Congress, H. Rept. No.100-433, S. Rept. No. 100-216), 164.

112 Kerry-Brown Report, Part 11, "BCCI, the CIAa n d F o r e i g n I n t e l l i g e n c e(http://www.fas.org/irp/congress/1992_rpt/bcci/11intel.htm)."

113 Kerry-Brown Report, Part 11, "BCCI, the CIAa n d F o r e i g n I n t e l l i g e n c e(http://www.fas.org/irp/congress/1992_rpt/bcci/11intel.htm)."

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114 Dan Bawley, Corporate Governance andAccountability: What Role for the Regulator,Director, and Auditor? (Westport, CT: Quorum,1999). 37.

1 1 5 Bawley, Corporate Governance andAccountability, 37.

116 "Revealed – the capitalist network that runst h e w o r l d(http://www.newscientist.com/article/mg21228354.500-revealed--the-capitalist-network-that-runs-the-world.html#.Uw9X_14ihpi)." NewScientist, October 24, 2011.

117 Scott, American War Conspiracy, 163;quoting from Peter Truell and Larry Gurwin,False Profits: The Inside Story of BCCI, theWorld's Most Corrupt Financial Empire(Boston: Houghton Mifflin, 1992), 384 ("ties").

118 Alan A. Block and Constance A. Weaver, Allis clouded by desire: global banking, moneylaundering, and international organized crime(Westport, CT: Praeger, 2004), 36-37.

1 1 9 "Saudi prince 'received arms cash',(http://news.bbc.co.uk/2/hi/business/6728773.stm)" BBC, June 7, 2007. It is unclear whetherpayments continued after 2001, when the UK

signed the OECD's Anti-Bribery Convention,making such overpayments illegal.

120 Robert Lacey, Inside the Kingdom: Kings,Clerics, Modernists, Terrorists, and theStruggle for Saudi Arabia (New York: PenguinBooks, 2009), 108.

121 Trento, Prelude to Terror, 102.

122 Amy B. Zegart, Flawed by Design: TheEvolution of the CIA, JCS, and NSC (Stanford:Stanford UP, 1999), 189; citing ChristopherAndrew, For the President's Eyes Only (NewYork: HarperCollins, 1995), 172; see alsoChurch Committee, Final Report, Book 4,28-29.123 Former Turkish President and PrimeMinister Suleyman Demirel commented that "Inour country… there is one deep state and oneother state…. The state that should be real isthe spare one, the one that should be spare isthe real one" (Jon Gorvett, "Turkey's 'DeepState' Surfaces in Former President's Words,D e e d s i n K u r d i s h T o w n(http://www.washington-report.org/archives/Jan_Feb_2006/0601037.html)," Washington Reporton Middle East Affairs, January/February2006); quoted in Scott, American War Machine,24.