The Asia-Pacific Journal | Japan Focus Volume 12 | Issue 10 | Number 5 | Mar 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→国家、深層国家、そして超支配者ウォール・ストリート (Updated March 13, 2014)

Peter Dale Scott

Updated March 13, 2014. German translationa v a i l a b l e(http://www.larsschall.com/2014/03/14/der-sta a t - d e r - t i e f e - s t a a t - u n d - d i e - w a l l - s t r e e t -oberwelt-2/).

In the last decade it has become more and moreobvious that we have in America today what thejournalists Dana Priest and William Arkin havecalled

two governments: the one itscitizens were familiar with, operatedmore or less in the open: the other aparallel top secret governmentwhose parts had mushroomed inless than a decade into a gigantic,sprawling universe of its own,visible to only a carefully vettedcadre – and its entirety…visible onlyto God.1

And in 2013, particularly after the military returnto power in Egypt, more and more authorsreferred to this second level as America's "deepstate."2 Here for example is the Republicananalyst Mike Lofgren:

There is the visible governments i tuated around the Mal l inWashington, and then there is

another, more shadowy, moreindefinable government that is note x p l a i n e d i n C i v i c s 1 0 1 o robservable to tourists at the WhiteHouse or the Capitol. The former istraditional Washington partisanpolitics: the tip of the iceberg that apublic watching C-SPAN sees dailya n d w h i c h i s t h e o r e t i c a l l ycontrollable via elections. Thesubsurface part of the iceberg I shallcall the Deep State, which operatesaccording to its own compassheading regardless of who isformally in power.3

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

DEEP STATE n. A hard-to-perceivelevel of government or super-control that exists regardless ofelections 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 have elsewherecalled "deep politics:" "all those political practicesand arrangements, deliberate or not, which are

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usually repressed rather than acknowledged."5

Others, like Tom Hayden, call the deep state a"state within the state," and suggest it may beresponsible 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, going backas far as the CIA's operationsagainst Cuba. In Obama's time, thepresident correctly named the 2009coup in Honduras a "coup", andthen seemed powerless to preventit.6

This development of a two-level or dual state hasbeen 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 intensified eachother – particularly since the Reagan Revolutionof 1980, which saw American inequality ofwealth cease to diminish and begin to increase.8

Thus for example we shall see how Wall Street –the incarnation of the "one percent" – played asignificant role in increasing the deep state afterWorld War Two, and how three decades later thedeep state played a significant role in realigningAmerica for the Reagan Revolution.

In earlier books I have given versions of thisAmerica-centered account of America's shift intoempire and a deep state. But another factor to bementioned is the shift of global history towardsan increasingly global society dominated by afew emergent superpowers. This trend wasaccelerated after the Industrial Revolution bynew technologies of transport, from the railroad

in the 19th century to the jet plane and spacetravel in the 20th.9

In the fallout from this rearrangement we mustinclude two world wars, as a result of whichBritain ceased to act as the dominant superpowerit had been since Napoleon. Not surprisingly, theSoviet Union and the United States subsequentlycompeted in a Cold War to fill the gap. It was nothowever predetermined that the Cold Warwould be as thuggish and covertly violent as fordecades it continued to be. For that we shouldlook to more contingent causes on both sides ofthe Iron Curtain – starting with the character ofStalin and his party but also including the partlyresponsive development of the American deepstate.

The Deep State, The Shadow Government andthe Wall Street Overworld

The "deep state" was defined by the UKnewsletter On Religion as "the embedded anti-democrat ic power structures within agovernment, something very few democraciescan claim to be free from."10 The term originatedin Turkey in 1996, to refer to U.S.-backedelements, primarily in the intelligence servicesand military, who had repeatedly used violenceto interfere with and realign Turkey's democraticpolitical process. Sometimes the definition isrestricted to elements within the government (or"a state-within-the state"), but more often inTurkey the term is expanded, for historicalreasons, to include "members of the Turkishunderworld."11 In this essay I shall use "deepstate" in the larger sense, to include both thesecond 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

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

1) the Beltway agencies of theshadow government, like the CIAa n d N S A , w h i c h h a v e b e e ninstituted 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 owner ofthe Deep State and its strategies, iffor no other reason than that it hasthe money to reward governmentoperatives with a second career thatis lucrative beyond the dreams ofavarice - certainly beyond thedreams of a salaried governmentemployee.13

I shall argue that in the 1950s Wall Street was adominating complex. It included not just banksand oil firms but also the oil majors whose cartelarrangements were successfully defended againstthe U.S. Government by the Wall Street law firmSullivan and Cromwell, home to the Dullesbrothers. This larger complex is what I mean bythe Wall Street overworld.

The Long History of the Wall Street Overworld

Lofgren's inclusion of Wall Street is in keepingwith Franklin Roosevelt's observation in 1933 tohis friend Col. E.M. House that "The real truth …is, as you and I know, that a financial element inthe larger centers has owned the Governmentever since the days of Andrew Jackson."14

FDR's insight is well illustrated by the efficiencywith which a group of Wall Street bankers(including Nelson Rockefeller's grandfatherNelson Aldrich and Paul Warburg) were able in ahighly secret meeting in 1910 to establish theFederal Reserve System – a system which ineffect reserved oversight of the nation's currencysupply and of all America's banks in the notimpartial hands of its largest.15 The political cloutof the quasi-governmental Federal Reserve Board(where the federal Treasury is represented butdoes not dominate) was clearly demonstrated in2008, when Fed leadership secured instantsupport from the successive administrations of aTexan 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 Director ofCentral Intelligence (DCI), recruited Allen Dulles,then a Republican lawyer at Sullivan andCromwell in New York, "to draft proposals forthe shape and organization of what was tobecome the Central Intelligence Agency in 1947."Dulles promptly formed an advisory group of sixmen, all but one of whom were Wall Streetinvestment bankers or lawyers.17 Dulles and twoof the six (William H. Jackson and Frank Wisner)later joined the agency, where Dulles proceededto orchestrate policies, such as the overthrow ofthe Arbenz regime in Guatemala, that he hadpreviously discussed in New York at the Councilon 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 the earlysummer 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 had begunat the wealthy Brook Club in New York; butAllen 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 Wall Streetto 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 known asthe Marshall Plan.23 Together with GeorgeKennan and James Forrestal, Dulles also "helpeddevise a secret codicil [to the Marshall Plan] thatgave the CIA the capability to conduct politicalwarfare. It let the agency skim millions of dollarsfrom the plan."24

This created one of the earlier occasions when theCIA, directly or indirectly, recruited local assetsinvolved in drug trafficking. AFL member IrvingBrown, the assistant of AFL official Jay Lovestone(a CIA asset), was implicated in drug smugglingactivities in Europe, at the same time that he usedfunds diverted from the Marshall Plan toestablish

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 Communist dockworkers.25

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

"M-Fund," a secret fund of money ofenormous size that has existed inJapan [in 1991] for more than fortyyears. The Fund was established bythe United States in the immediatepostwar era for essentially the samereasons that later gave rise to theMarshall Plan of assistance by theU.S. to Western Europe, includingthe Federal 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 in 1948to administer the Marshall Plan) to oil companies

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to powerful drug kingpins.29

The CIA never abandoned its dependency onfunds from outside its official budget to conductits clandestine operations. In Southeast Asia, inparticular, its proprietary firm Sea Supply Inc.,supplied an infrastructure for a drug trafficsupporting a CIA-led paramilitary force, PARU.30

The CIA appears a lso to have acted incoordination with slush funds from various U.S.government contracts, ranging from the HowardHughes organization to (as we shall see) theforeign arms sales of U.S. defense corporationslike Lockheed and Northrop.31

Lockheed Payoffs and CIA Clients: theNetherlands, Japan, Italy, Indonesia, and SaudiArabia

Kodama Yoshio, war criminal, drug trafficker,and purveyor of deep state US funds toJapanese politicians

Through the 1950s payouts from the M-fundwere administered by Kodama Yoshio, "probablythe CIA's chief asset in Japan;" while "Allaccounts say that after the end of the occupation,the fund's American managers came from theCIA."32 Kodama also received and distributedmillions of funds from Lockheed to securemilitary contracts – an operation the CIA knewabout but has never admitted involvement in.33

Lockheed's system of payoffs was world-wide;and one sees CIA involvement with it in at least

four other countries: the Netherlands, Italy,Indonesia and Saudi Arabia. (Lockheed, thebuilder of the U-2, was a major CIA-clearedcontractor.)34

The beneficiary in the Netherlands was PrinceBernhard, a close friend of CIA directors WalterBedell Smith and Allen Dulles, and the organizerof the Bilderberg Group.35 In the case of Italy,payments were handled through a contact("Antelope Cobbler") who turned out to bewhoever was the Italian Prime Minister of themoment (always from one of the partiessubsidized earlier by the CIA).36

In the revealing instance of Indonesia, Lockheedpayments were shifted in May 1965, over thelegal objections of Lockheed's counsel, to a newcontract with a company set up by the firm'slong-time local agent or middleman, AugustMunir Dasaad.86 This was just six months after asecret U.S. decision to have the CIA covertlyassist

"individuals and organizationsprepared to take obstructive actionagainst the PKI [ IndonesianCommunist Party]." Over the longerterm this meant identifying andkeeping 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 new President.39

In July 1965, furthermore, at the alleged nadir of

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U.S.-Indonesian aid relations, Rockwell-Standardhad a contractual agreement to deliver twohundred light aircraft (Aero-Commanders) to theIndonesian Army (not the Air Force) in the nexttwo months. Once again the commission agenton the deal, Bob Hasan or Hassan, was a politicalassociate (and eventual business partner) ofSuharto. More specifically, Suharto and BobHasan established 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 allied withIbnu Sutowo in plotting against Sukarno, alongwith 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, which werefar greater than those to Japan. It is important tonote, however, the linkage between Middle Eastoil and arms sales: as U.S. imports of Middle Eastoil increased, the pressure on the U.S. balance ofpayments was offset by increased U.S. arms salesto the region. "In the period 1963-1974, arms salesto the Middle East went from 10 per cent ofglobal arms imports to 36 per cent, half of whichwas supplied 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 not

hide from each other their shared belief that theyunderstood better than Washington therequirements for running the world. As JohnFoster Dulles wrote in the 1930s to a Britishcolleague,

The word "cartel" has here assumedthe stigma of a bogeyman which thepoliticians are constantly attacking.The fact of the matter is that most ofthese politicians are highly insularand nationalistic and because thepolitical organization of the worldhas under such influence been sobackward, business people whohave had to cope realistically withinternational problems have had tofind ways for getting through andaround stupid political 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 authorized insteadby the UK Prime Minister Macmillan.46

This mentality exhibited itself in 1952, whenTruman's Justice Department sought to break upthe cartel agreements whereby Standard Oil ofNew 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 Shell

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and Anglo-Iranian, they comprised the so-calledSeven Sisters of the cartel.) Faced with agovernment order to hand over relevantdocuments, Exxon's lawyer Arthur Dean atSullivan and Cromwell, where Foster was seniorpartner, refused: "If it were not for the questionof national security, we would be perfectlywilling to face either a criminal or a civil suit. Butthis is the kind of information the Kremlin wouldlove to get its hands on."47

Wall Street, the former headquarters of bothSullivan and Cromwell and the J. HenrySchroder Banking Corporation

At this time the oil cartel was working closelywith the British Anglo-Iranian Oil Company( A I O C , l a t e r B P ) t o p r e v e n t A I O C ' snationalization by Iran's Premier Mossadeq, byinstituting, in May 1951, a successful boycott ofIranian oil exports.

In May 1951 the AIOC secured thebacking of the other oil majors, whohad every interest in discouragingnationalisation.... None of the largecompanies would touch Iranian oil;despite one or two picturesqueepisodes the boycott 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 was going.49

But Truman declined, despite a direct personalappeal from Churchill , to have the CIAparticipate in efforts to overthrow Mossadeq, andinstead dispatched Averell Harriman to Tehranin a failed effort to negotiate a peaceful resolutionof Mossadeq's differences with London.50

Allen and John Foster Dulles, pillars of boththe state and the deep state

All this changed with the election of Eisenhowerin November 1952, followed by the appointmentof the Dulles brothers to be Secretary of State and

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head of CIA. The Justice Department's criminalcomplaint against the oil cartel was swiftlyreplaced by a civil suit, from which the oil carteleventually emerged unscathed.51

Eisenhower, an open friend of theoil industry…changed the chargesf r o m c r i m i n a l t o c i v i l a n dtransferred responsibility of the casefrom the Department of Justice tothe Department of State – the firsttime in history that an antitrust casewas handed to State for prosecution.Seeing as how the Secretary of Statewas John Foster Dulles and thedefense counsel for the oil cartel wasDulles' former law firm (Sullivanand Cromwell), the case was soon asgood as dead.52

Thereafter

Cooperative control of the worldmarket by the major oil companiesremained in effect, with varyingdegrees of success, until the oilembargo of 1973-74. That thecooperation was more than tacit canbe seen by the fact that antitrustregulations were specifically setaside a number of times during the1950-1973 period, allowing themajor companies to negotiate as agroup with various Mideasterncountries, and after its inception [in1960], with the Organization ofPetroleum Exporting Countries orOPEC.53

Also in November 1952 CIA officials beganplanning to involve CIA in the efforts of MI6 andthe oil companies in Iran5 4 -- although itsnotorious Operation TP/AJAX to overthrow

Mossadeq was not f inally approved byEisenhower until July 22, 1953. 5 5

The events of 1953 strengthened the role of the oilcartel as a structural component of the Americandeep state, drawing on its powerful connectionsto both Wall Street and the CIA.56 (Another suchcomponent was the Arabian-American OilCompany or ARAMCO in Saudi Arabia, whichincreased oil production in 1951-53 to offset theloss of oi l from Iran. Unti l i t was fullynationalized in 1980, ARAMCO maintainedundercover CIA personnel like William Eddyamong its top advisors.)57 The five American oilmajors in particular were also strengthened bythe success of AJAX, as Anglo-Iranian (renamedBP) was henceforth forced to share 40 percent ofthe oil from its Iran refinery with them.

Nearly all recent accounts of Mossadeq'soverthrow treat it as a covert intelligenceoperation, with the oil cartel (when mentioned atall) 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 termsof the deep state, the oil cartel or deep stateinitiated in 1951 a process that the Americanpublic state only authorized two years later. Yetthe inevitable bias in academic or archivalhistoriography, working only with those primarysources that are publicly available, is to think ofthe Mossadeq tragedy as simply a "CIA coup."

The CIA, Booz Allen Hamilton, and the WallStreet Overworld

The "revolving door" also circulates top-levelintelligence officials and the chiefs of the clearedcontractors referred to by Mike Lofgren as part ofthe deep state. Tim Shorrock revealed in 2007that "about 70 percent of the estimated $60 billiont h e g o v e r n m e n t s p e n d s e v e r y y e a ron…intelligence" is outsourced to privateintelligence contractors like Booz, Allen &

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Hamilton (now Booz Allen Hamilton) andSAIC.58 For example Mike McConnell "went frombeing head of the National Security Agencyunder Bush 41 and Clinton directly to BoozAllen, 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 officers ingovernment write the non-competitive contractsfor the private corporations that they may haveworked for and may work for again.59 And overthe years the "revolving door" has alsoexchanged personnel between Booz Allen andthe international oil companies served by thefirm.

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 Allen Hamiltonis majority owned by the private equity firm theCarlyle Group, noted for its association withpolitical figures like both presidents 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 NSA

ever since its employee Edward Snowdendecamped with NSA records. But Booz Allen,one of the oldest and largest of the "clearedcontractors," has been intertwined with the CIA'scovert operations since Allen Dulles became CIADirector in 1953.62 In the same year, Booz Allenb e g a n " t o t a k e o n s e v e r a l o v e r s e a sassignments…: a land-registration system in thePhilippines, a restructuring of Egypt's customsoperations and textile industries, and work forIran's national oil company."6 3 All threeassignments overlapped with CIA covert ops in1953, including the Philippine land distributionprogram which Edward Lansdale promoted inorder to fight a Huk insurrection, and the CIA'soperation TP/AJAX (with Britain's MI6) to rescuethe Anglo-Iranian oil company (later BP).64

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 under

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what was, for all practical purposes, a joint CIA-BA&H mission."6 5 In addition to offeringmanagement advice to the Egyptian governmentin general, and to a private textile mill, Miles alsogave Nasser advice on establishing hisintelligence service (the Mukhabarat), and "soonbecame his closest Western advisor" (as well ashis top channel to the USG, more important thaneither the local US ambassador or CIA chief)66

Copeland's role with Nasser did not make him ashaper of U.S. policy; his pro-Nasser views werelargely subordinated to the pro-British anti-Nasserism of the Dulles brothers. But they didestablish 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 Adnan Khashoggi

In 1966 Copeland, while technically on leavefrom Booz Allen, made close contact with AdnanKhashoggi, a young Arab who was in the courseof becoming both a "principal foreign agent" ofthe U.S. and also extremely wealthy on thecommissions he earned from Lockheed and othermilitary firms on arms sales to Saudi Arabia.67

("To give some sense of the size of the business,the company acknowledged in the mid-1970sthat it had provided $106 million in commissionsto Khashoggi between 1970 and 1975, more thanten times the level of payments made to the nextmost important connection, Yoshi [sic] Kodamaof Japan."68

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, anda very special kind of political action."69 Copelandadds that

Adnan and I, separately had beencalled on by our respective friendsin Langley [i.e., CIA] to… have anofficial [sic], off-the-record exchangeof ideas on the emerging crisis in theMiddle East, and come up withs u g g e s t i o n s t h a t t h e t a m ebureaucrats would like to havemade but couldn't.70

Copeland almost immediately flew to Cairo andimmersed himself in a series of high-level butultimately unsuccessful efforts to forestall whatsoon became the 1967 Six Day Egyptian-Israeli

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Six Day War. By his account, his mission, thoughunsuccessful, gave a "tremendous boost" to hisreputation, enabling him "to accelerate theattempt I had already started to establish a'private CIA' by use of confidential arrangementswith politically astute members of the clientcompanies."71

Copeland's self -promoting claims arecontroversial, and a number of establishmentwriters have described his books as "unreliable."72

But eyewitness Larry Kolb corroborates thatCopeland was close to Khashoggi, and that thetwo of them

had writ ten a white paper…proposing that… rich countries,including not only the United Statesbut also the Arab oil states, shouldestablish a "Marshall Plan" for all theneedy countries of the Middle East,including Israel.

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

The proposal failed, partly because of the MiddleEast's resistance to negotiated solutions, but alsopartly because by the 1980s Khashoggi was nolonger as rich and influential as he had oncebeen. His function as an agent of influence in theMiddle East and elsewhere had been sharplylimited after the United States, by the CorruptFederal Practices Act of 1978, outlawed directpayments by US corporations to foreignindividuals. Henceforward the function ofbestowing money and sexual favors on clientpoliticians passed primarily from Khashoggi toanother CIA connection, the Bank of Credit andCommerce International (BCCI).74 A majorshareholder in BCCI was Saudi intelligence chiefKamal Adham, Khashoggi's friend and business

partner and (according to the Senate BCCIReport) "the CIA's former principal contact in theArab Middle East."75

What the story of the failed "Mideast PeaceFund" reveals is first, that Khashoggi (like BCCIafter him) was of interest to Washington becauseof his ability to negotiate with both Israel andArab countries; and second, that Copeland andwhat Copeland called his "private CIA,"76 was ina commanding position as lead adviser toKhashoggi, while still on unpaid leave from BoozAllen Hamilton.

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

A powerful connection was formed bycombining Copeland's political contacts withKhashoggi's millions. Copeland may have beenresponsible for Khashoggi's inspired choice of theunder-recognized Edward K. Moss, another manwith 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 brother DinoCellini were alleged to be procurers, while "theCellini brothers have long been associated withthe 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 "used sexto win over U.S. executives." The bill for themadam who supplied girls en masse to his yachtin the Mediterranean ran to hundreds ofthousands of dollars.80 Khashoggi made apractice of supplying those he wished to

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influence with dollars as well as sex.

Khashoggi's Superyacht Kingdom 5KR, nowowned 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 to right-wing politicians that characterized its behavior inthe rest of the world. But no such prohibitionapplied to Khashoggi. According to AnthonySummers,

Khashoggi had courted Nixon in1967 by putting a plane at hisdisposal to tour the Middle Eastaf ter the Six-Day War. Soonafterward, using a proxy, he openedan account at Rebozo's [BebeRebozo, Nixon's close confidante] inFlorida. He did so, he explained toWatergate prosecutors, hoping to"curry favor with Rebozo," to get anentrée to the man who mightbecome president, and to pursuebusiness deals.81

Khashoggi in effect served as a "cutout," orrepresentative, in a number of operationsforbidden to the CIA and the companies heworked with . Lockheed, for one , wasconspicuously absent from the list of militarycontractors who contributed illicitly to Nixon's1972 election campaign. But there was no law

prohibiting their official representative,Khashoggi, from cycling $200 million through thebank 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 merely joineda milieu where defense companies had usedmoney 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-ownedSands Hotel in Las Vegas, a blonde cameunexpectedly to his hotel room, and said, "I'mhere for your pleasure.")85

But Khashoggi's corruption channels and targetsoverlapped with those of others with CIAconnections. In 1972 it was alleged that fundsfrom the Paradise Island casino in the Bahamaswere being secretly carried to Nixon and hisfriend Bebe Rebozo, by a casino employee. Thiswas Seymour (Sy) Alter, who was both "a friendof Nixon and Rebozo since 1962" and also anassociate of Edward Moss's brother-in-law EddieCellini, the casino manager at Paradise Island. 86

The funds came from the Paradise Island BridgeCompany, a company partly owned by an officerof Benguet International, a firm represented inAmerica by Paul Helliwell.87 It is likely thatNixon himself had a hidden interest in the BridgeCompany, which might explain the revelationthrough Operation Tradewinds that a "RichardM. Nixon" (not otherwise identified) had anaccount at Helliwell's Castle Bank.88

Three facts point to a deep state interest in whatmight otherwise seem a matter of personal

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corruption. The first is that Paul Helliwell had setup two companies for the CIA -- CAT Inc. (LaterAir America) and SEA Supply Inc. in Bangkok --that became the infrastructure of the CIA's covertoperations with drug-trafficking armies inSoutheast Asia.8 9 The second is that PaulHelliwell's banking partner, E.P. Barry, had beenthe postwar head of OSS Counterintelligence(X-2) in Vienna, which oversaw the recovery ofSS gold in Operation Safehaven.90 The third isthat for over four decades persons from BoozAllen Hamilton 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 of theelite Safari Club in Kenya, where he invitedKhashoggi in as majority owner.92 The exclusiveproperty became the venue for an alliancebetween intelligence agencies that wished tocompensate 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 Watergate matterstook place here, your intelligencecommunity was literally tied up byCongress. It could not do anything.It could not send spies, it could notwrite reports, 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, and Iran.94

Prince Turki's candid remarks– "your intelligencecommunity was literally tied up by Congress. ….In order to compensate for that, a group ofcountries got together … and established whatwas called the Safari Club." – made it clear thatthe Safari Club, operating at the level of the deepstate, was expressly created to overcomerestraints established by political decisions of thepublic state in Washington.

Obviously the property owned by Khashoggiand Moss in Kenya should not be confused withthe intelligence operation of the same name. Butit 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 were somewhatcurtailed by Senator Church's post-Watergatereforms, appear to have been taken up by theBank of Credit and Commerce International(BCCI), a bank where Khashoggi's friend andbusiness partner Kamal Adham, the Saudiintelligence chief and Safari Club member, was apart-owner.95

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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 origin isthat 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 deContre-Espionnage)…. Worried bySoviet and Cuban advances inpostcolonia l 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 i

Arabia)…. 9 6

However the well-informed Mahmood Mamdanisees it as the product of Washington's search fornew proxies after the debacle of the U.S.- SouthAfrican debacle in Angola in the mid-1970s:

Apartheid South Africa wasconfirmed to be a political liability.The recognition only aggravated thesearch for proxies. Its first successwas a regional alliance called theSafari Club, put together with theblessing of Henry Kissinger.97

As Kissinger was still Secretary of State when theSafari Club was founded, this would suggest thatit was an authorized, not a deep state creation. Sowould the Club's early successes that Mamdanicites, especially when

it helped bring about the historicrapprochement between twostrategic American Allies, Egypt andIsrael, laying the ground for Anwaral-Sadat's pathbreaking November1977 vis i t to Jerusalem. Thesuggestion for the meeting was firstmade in a letter from Israeli PrimeMinister Yitzhak Rabin to PresidentSadat, carried by the Moroccanrepresentative in the club.98

But after Carter was elected, according to Trento,the Safari Club allied itself with Richard Helmsand Theodore Shackley against the restrainedintelligence policies of Jimmy Carter. In Trento'saccount, the dismissal by William Colby in 1974of CIA counterintelligence chief James Angleton,

combined with Watergate, is whatprompted the Safari Club to start

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working with [former DCI Richard]Helms [then U.S. Ambassador toI r a n ] a n d h i s m o s t t r u s t e doperatives outside of Congressionaland even Agency purview. JamesAngleton said before his death that" C o l b y d e s t r o y e dcounterintelligence. But becauseColby was seen by Shackley andHelms as having betrayed the CIAto Congress, they simply beganworking with outsiders like Adhamand Saudi Arabia. The traditionalCIA answering to the president wasan empty vessel having little morethan technical capability."99

Joseph Trento adds that "The Safari Club neededa network of banks to finance its intelligenceoperations,… With the official blessing of GeorgeB u s h a s t h e h e a d o f t h e C I A , A d h a mtransformed… the Bank of Credit and CommerceInternational (BCCI), into a worldwide money-laundering machine."100

Trento claims also that the Safari Club then wasable to work with some of the controversial CIAoperators who were then forced out of the CIAby Turner, and that this was coordinated byperhaps the most controversial of them all:Theodore Shackley.

Shackley, who still had ambitions tobecome DCI, believed that withouthis many sources and operativeslike [Edwin] Wilson, the Safari Club-operat ing with [ former DCIRichard] Helms in charge in Tehran-would be ineffective. … UnlessShackley took direct action tocomplete the privatization ofintelligence operations soon, theSafari Club would not have aconduit to [CIA] resources. The

solution: 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 bank mostclosely allied with Safari Club operations: theBank of Credit and Commerce International(BCCI). In Phillips' words,

After leaving the CIA in January1977, Bush became chairman of theexecutive committee of FirstInternational Bancshares and itsBritish subsidiary, where, accordingto journalists Peter Truell and LarryGurwin in their 1992 book 'FalseProfits' [p. 345], Bush 'traveled onthe bank's behalf and sometimesmarketed to international banks inLondon, including several MiddleEastern institutions.'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-ContraScandal

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.

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According to Theodore Draper, in his exhaustivestudy of Iran-Contra,

A chance encounter between AdnanK h a s h o g g i a n d M a n u c h e rGhorbanifar effectively set the Iranaffair in motion. As Khashoggi toldthe story to the French writer MichelClerc, the meeting took place inHamburg 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. 1 0 6 ButKhashoggi's connection to Schwimmer went evenfurther back: the two men had been introducedin Las Vegas by Schwimmer's partner in gun-running to the infant state of Israel, HankGreenspun.107

Draper's account of the Hamburg meeting failshowever to note that Miles Copeland and hisassistant Larry Kolb were (according to their ownaccounts) also present. Copeland writes that heand Khashoggi met with the Iranian arms dealerManucher Ghorbanifar, after which Copelandwrote up an Iran arms sales proposal. Copelandclaims this had nothing to do with either Contrasor hostages, but was intended as a "second paperto McFarlane…as an appendix to the 'MarshallPlan' paper. So far as [Khashoggi} was personallyconcerned, he was attracted to [Ghorbanifar's]proposal only to the extent to which it could betied into plans for over all Middle Easternpeace."108

Copeland's aide Larry Kolb agrees that he,Copeland, Khashoggi, and Schwimmer were allpresent with Ghorbanifar and others at the 1985Hamburg meeting. There, according to Kolb,

Khashoggi

said that in recent meetings inWashington, he'd been told that ifthe American government wasgoing to par t i c ipate in th i sventure…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 strategic openingbetween the United States and Iran –as a means of blunting Sovietattempts to dominate the world'sthird largest oil producer.109

Later he and Copeland wrote up the meeting in apaper "titled 'Adnan Khashoggi's Views on thePossibilities of a Strategic Initiative Between theUnited States and Iran'," that "wasn't about anarms deal." They gave it to Khashoggi to presentto McFarlane.

We had no idea then that… monthslater a wild-ass Marine colonelwould force the whole thing out intothe open by s tea l ing 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-

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Contra Affair agrees with Kolb that "Khashoggisuggested that Ghorbanifar try to develop accessto the United States and its arms throughIsrael."111 And the Senate investigation of BCCIalso 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 theof f ic ia l chronologies of theIran/Contra committees, Khashoggiacted as the middleman for fiveIranian arms deals for the UnitedStates, financing a number of themthrough BCCI …. According to hisown and other published accounts,he provided some $30 million inloans altogether…. Both Khashoggiand Ghorbanifar banked at BCCI'soffices in Monte Carlo, and for both,BCCI's services were essential.112

Both Ghorbanifar and Khashoggi have beenpresented as mavericks interested in arms salesfor their own individual profit. However theparticipation of Copeland suggests that, onceagain, what Copeland called "friends in Langley"may have been interested in engaging them in anoperation to which both the Secretaries of Stateand of Defense were resolutely opposed.

The Deep State and the BCCI Cover-Up

It is clear that for years the American deep statein Washington was both involved with andprotected BCCI. Acting CIA director RichardKerr acknowledged to a Senate Committee "thatthe CIA had also used BCCI for certainintell igence-gathering operations." 1 1 3

Later, a congressional inquiry

showed that for more than ten yearspreceding the BCCI collapse in thesummer of 1991, the FBI, the DEA,the CIA, the Customs Service, andthe Department of Justice all failedto act on hundreds of tips about theillegalities of BCCI's internationalactivities.114

Far less clear is the attitude taken by Wall Streetbanks towards the miscreant BCCI. The Senatereport on BCCI charged however that the Bank ofEngland "had withheld information about BCCI'sfrauds from public knowledge for 15 monthsbefore closing the bank."115

Of course the scope and influence of BCCIreflected changes in the global superstructure offinance since the oil price hikes of the 1970s. Arecent study of the dangerously unstableconcentration of ownership in the world showedonly four recognizable Wall Street institutionsamong the top twenty: JPMorgan Chase & Co,the Goldman Sachs Group, Bank of New YorkMellon Corp, and Merrill Lynch.116 Of these, Bankof New York, the bank heavily involved in the1990s looting of Russia, interlocked with BCCIthrough the Swiss banking activities of theinternational banker Bruce Rappaport, "thoughtto have ties to US and Israeli intelligence."(Alfred Hartmann, a board member of BCCI, wasboth vice-chairman of Rappaport's Swiss bank,Bank of New York-Intermaritime, and also headof BCCI's Swiss subsidiary, the Banque deCommerce et de Placements).117 The mysteriousE.P. Barry, the OSS veteran who had overseen therecovery of SS gold in Operation Safehavenbefore becoming 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 political corruptionin the U.S. and elsewhere. After a proposedmajor arms sale in the 1980s met enhanced

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opposition in Congress from the Israeli lobby,Saudi Arabia negotiated a multi-billion poundlong-term contract with the United Kingdom –the so-called al-Yamamah deal. It developedmuch later that overpayments for the purchasedweapons were siphoned off into a huge slushfund for political payoffs, including "hundreds ofmillions of pounds to the ex-Saudi ambassador tothe 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 These practices,in other words, survived the legal efforts to endthem.

Conclusion: A Supranational Deep State

The complex milieu of Khashoggi, the BCCI, andthe Safari Club can be characterized as asupranational deep state, whose organic links tothe CIA may have helped consolidate it. It is clearhowever that decisions taken at this level by theSafari Club and BCCI were in no way guided bythe political determinations of those elected topower in Washington. On the contrary, PrinceTurki's candid remarks revealed that the SafariClub (with the alleged participation of twoformer CIA Directors, Bush and Helms) wasexpressly created to overcome restraintsestablished by political decisions in Washington.

A former Turkish president and prime ministeronce commented that the Turkish deep state was

the real state, and the public state was only a"spare state," not the real one.1 2 3 A betterunderstanding of the American deep state isnecessary, if we are to prevent it from assumingpermanently 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=theasipacjo0b - 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 of hisw 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, Volume 12,Issue 10, No. 5, March 10, 2014.

Notes

1 Dana Priest and William Arkin, Top SecretAmerica: The Rise of the New American SecurityState (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/n s a - 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: theUnited States of America is partially governed bya deep state, undemocratic, secret, aligned withintelligence agencies, spying on friend and foe,lawless in almost every respect."

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3 Mike Lofgren, "A Shadow Government ControlsA 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/ s u 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 York Times,December 21, 2013.

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

6 "Tom Hayden discussing the crisis in Venezuela(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 wealthier thanthe bottom 30% of Americans, or 94.5 millionpeople (Tim Worstall, "Six Waltons Have MoreWealth Than the Bottom 30% of Americans(http://www.forbes.com/sites/timworstall/2011/12/14/six-waltons-have-more-wealth-than-the-bottom-30-of-americans/)," Forbes,December 14, 2011). Cf. the devastating picture ofa disintegrating 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 and poor:wealth and the American electorate in theReagan aftermath (New York: HarperCollins,1991). Cf. John T. Stinson, The Reagan Legacy(Bloomington, IN: iUniverse, 2009), 146; TimothyNoah, The great divergence: America's growinginequality crisis and what we can do about it(New York: Bloomsbury, 2012).

9 For the impact of railroads on expanded socialawareness, see Benedict Anderson, Imagined

communities: reflections on the origin and spreadof 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 Dale Scott,"9/11, Deep State Violence and the Hope ofI 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 the Susurlukincident, see also Scott, American War 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 Charles Forbeswrote six years later: "Picture a party of thenation's greatest bankers stealing out of NewYork on a private railroad car under cover ofdarkness, stealthily riding hundred[s] of milesSouth, embarking on a mysterious launch,sneaking onto an island [the appropriatelynamed Jekyll Island] deserted by all but a fewservants, living there a full week under suchrigid secrecy that the names of not one of themwas once mentioned, lest the servants learn theidentity and disclose to the world this strangest,most secret expedition in the history of Americanfinance. I am not romancing; I am giving to theworld, for the first time, the real story of how thefamous Aldrich currency report, the foundationof our new currency system, was written (B.C.Forbes, Leslie's Weekly, October 19, 1916; in T.

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Cushing Daniel, Real money versus false money-bank credits; the most important factor incivilization and least understood by the people[Washington, D.C., The Monetary educationalbureau, 1924], 169; cf. B.C. Forbes, Men who aremaking America [New York: Forbes PublishingCo., 1922], 398; cf. G. Edward Griffin, TheCreature from Jekyll Island: A Second Look at theFederal Reserve [Westlake Village, CA: AmericanMedia, 1994]). Paul Warburg later wrote that"Though eighteen years have since gone by, I donot feel free to give a description of this mostinteresting conference, concerning which SenatorAldrich pledged all participants to secrecy" (PaulWarburg, The Federal Reserve System: Its Originand 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, January 8,2009; reprinted in Michel Chossudovsky andAndrew Gavin Marshall, eds., The GlobalEconomic Crisis: The Great Depression of the XXICentury (Montreal, Global Research Publishers.Centre for Research on Globalization, 2010),219-40; Llewellyn H. Rockwell, Jr., "Sen. Inhofe:[Henry] Paulsen [Secretary of the Treasury andformer Chief Executive Officer of GoldmanSachs] 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 and MI6(New York: Thomas Dunne Books/ St. Martin'sPress, 2009), 98. This may have occurred duringDulles's visit to Europe in the spring of 1947(James Srodes, Dulles: Master of Spies[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 and theMaking of American Foreign Policy, 1947-1950(Princeton, NJ: Princeton University Press, 1992),204.

2 1 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 also ChurchCommittee, 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 some detaila reconstruction plan that is one of the earliestnotions of what would, a year later, be known asthe Marshall Plan" (Srodes, Allen Dulles: Masterof Spies, 374).

24 Tim Weiner, Legacy of ashes: the history of theCIA (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.

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2 6 N o r b e r t S c h l e i , " J a p a n ' s ' M - F u n d '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 [in1960], Vice President Nixon agreed to turn overexclusive control of the M-Fund to Japan. It hasbeen alleged that this action by Nixon was part ofa corrupt political bargain, whereby it wasagreed that if Japan would assist him to becomePresident of the United States, Nixon wouldagree to release control of the Fund to Japan and,if he became President, would return Okinawa toJapan."

27 "C.I.A. Spent Millions to Support JapaneseRight in 50's and 60's," New York Times, October9, 1994. Cf. Scott, American War Machine, 93-94,298-99; citing Chalmers Johnson, "The 1955System and the American Connection: AB i b l i o g r a p h i c I n t r o d u c t i o n(http://www.jpri.org/publications/workingpapers/wp11.html)," JPRI [Japan Policy ResearchInstitute] Working Paper No. 11: July 1995.

28 Sterling Seagrave and Peggy Seagrave, Goldwarriors: America's secret recovery ofYamashita's gold (London: Verso, 2003). Cf.Richard Hoyt, Old Soldiers Sometimes Lie (NewYork: Forge, 2002), 80.

29 Scott, American War Machine, 94, etc.

30 Scott, American War Machine,

31 Norman Mailer, "A Harlot High and Low:Reconnoitering Through the Secret Government,"New York, August 16, 1976 (Hughes); MichaelSchaller, Altered states: the United States andJapan since the occupation (New York: OxfordUniversity 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 historical andcomparative 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 national airlineand defense establishment and raised thepossibility that the CIA had used Kodama andcorporate funds to influence Japanese politics.The money-laundering channel used forLockheed's bribes was favored both by the CIAand international drug traffickers."

34 Thomas Fensch, ed. The C.I.A. and the U-2Program: 1954-1974 (The Woodlands, TX: NewCentury Books, 2001).

3 5 William D. Hartung, Prophets of war:Lockheed Martin and the making of the military-industrial complex (New York: Nation Books,2011), 121; David Boulton, The Grease Machine(New York: Harper & Row, 1978), 97 (friends).

36 Andrew Feinstein, The shadow world: insidethe global arms trade (New York: Farrar, Strausand Giroux, 2011), 265; Anthony Sampson, TheArms 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.

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38 In addition there was "a US deal to deliver 200light 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 the bulk ofthe personnel for its suppression" (NathanielMehr, Constructive bloodbath' in Indonesia: theUnited States, Britain and the mass killings of1965-66 [Nottingham: Spokesman Books, 2009],36).

39 Peter Dale Scott, "The United States and theO v e r t h r o w o f S u k a r n o , 1 9 6 5 - 1 9 6 7(http://www.namebase.rorg/scott.html),"Pacific Affairs, 58, Summer 1985; citing

United States. Congress. Senate. Committee onForeign Relations, Multinational corporationsand United States foreign policy, hearings beforethe Subcommittee on Multinational Corporations(Washington: U.S. Govt. Printing Office,1973-1976), Part 12, 937-65.

40 Scott, "The United States and the Overthrow ofSukarno."

41 Masashi Nishihara, The Japanese and Sukarno'sIndonesia: Tokyo-Jakarta relations, 1951-1966(Honolulu: University Press of Hawaii, 1976),171, 194, 202; Scott, "The United States and theOverthrow of Sukarno."

42 Fortune, July 1973, 154, cf. Wall Street Journal,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.

4 4 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 of Sullivan& 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. The boycottis denied without argumentation in Exxon'scorporate history (Bennett H. Wall et al., Growthin a changing environment: a history of StandardOil Company (New Jersey), Exxon Corporation,1950-1975 (New York: McGraw-Hill, 1988), Vol.4, 476: "Despite oft-printed statements to thecontrary, the oil majors did not conspire toboycott 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 attempted tobreak the embargo by contracting to sell oil to asmall private Italian oil firm. The manoeuver wasfrustrated by the British Royal Navy, which inJuly 1952 intercepted the Italian tanker RoseMary and redirected it to Aden. The newsdissuaded other tankers from trying to reachAbadan (Mary Ann Heiss , Empire andNationhood: The United States, Great Britain,and Iranian Oil, 1950-1954 [New York: ColumbiaUniversity Press, 1997], 130; Stephen Kinzer, Allthe Shah's men: an American coup and the rootsof Middle East terror [Hoboken, NJ: John Wiley

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& 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 Dunne Books/ St. Martin's Press, 2013),627-28 (Harriman).

51 Demaris, Dirty Business, 214-25: "The incomingEisenhower Administration… quickly droppedthe criminal case. The civil suit that wasinstituted alleged that the five American oilcompanies violated the Sherman Antitrust andthe Wilson Tariff Acts by conspiring to dividea n d c o n t r o l f o r e i g n p r o d u c t i o n a n ddistribution…. An inadequate staff was assignedto the case and the action finally petered out adecade later with a couple of meaninglessconsent decrees."

52 Robert Sherrill, The oil follies of 1970-1980: howthe petroleum industry stole the show (and muchmore besides) (Garden City, NY: AnchorPress/Doubleday, 1983), 221).

53 William R. Freudenburg and Robert Gramling,Oil in troubled waters: perceptions, politics, andthe battle over offshore drilling (Albany : StateUniversity of New York Press, 1994); 17; citingShukri Mohammed Ghanem, OPEC, the Rise andFall of an Exclusive Club (London : KPI, 1986);Mira Wilk ins , "The Oi l Companies inPerspective," in Raymond Vernon (ed.), The OilCrisis (New York: Norton, 1976).

5 4 William Roger Louis, "Britain and theOverthrow of Mossadeq," in Mark J. Gasiorowskiand Malcolm Byrne (eds.) , MohammadMosaddeq and the 1953 coup in Iran (Syracuse:Syracuse University Press, 2004), 168. Cf. WilliamR. Clark, Petrodollar warfare: oil, Iraq and thefuture of the dollar (Gabriola Island, B.C.: NewSociety Publishers, 2005), 125: "[T]he Dullesbrothers had already conceived a plot when

Eisenhower became president in January 1953."

5 5 Scot Macdonald, Rolling the iron dice :historical analogies and decisions to use militaryforce in regional contingencies (Westport, CT:Greenwood Press, 2000), 98. Cf. Richard H.Immerman, John Foster Dulles : Piety,Pragmatism, and Power in U.S. Foreign Policy(Wilmington, DE: Scholarly Resources, 1999), 67.Allen Dulles played a personal role in TP/AJAX,by flying to Italy and persuading the frightenedShah to return to Tehran.

56 In the past, wishing to dissociate the term "deepstate" from organizational connotations, I havewritten of the American "deep state" as "a milieuboth inside and outside government with thepower to steer the history of the public state andsometimes redirect it" ("William Pawley, theKennedy Assassination, and Watergate(http://www.globalresearch.ca/william-pawley-the-kennedy-assassination-and-watergate-tilt-and-the-phase-three-story-of-clare-boothe-luce/5313486)," Global Research, November 29,2012. But because there are extra-governmentalstructural components to the deep state, it mightbe better to think of it as not just a milieu, butmore analogous to an oligopolistic 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, Carbon Democracy: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-

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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(Manila: Rex Book Store, 2004), 258 (Philippinesland distribution).

6 5 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. Senate Committeeon Foreign Relations by John Kerry and HankBrown, December 1992; 102nd Congress, 2ndSession, Senate Print 102-140 ("agent").

6 8 William D. Hartung, Prophets of war:Lockheed Martin and the making of the military-industrial complex (New York: Nation Books,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 ofAdnan Khashoggi (New York: Warner Books),300-01: "[O]n May 17, 1983, [Khashoggi]submitted to President Reagan a confidential'yellow paper' [which] proposed an economic aidprogram similar to the 1949 Marshall Plandeveloped by the U.S. for Europe. Called a PeaceFund, it would provide up to $300 billion inregional economic aid from the U.S., SaudiArabia and Kuwait to Israel and any Arabcountry that signed a peace treaty 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 haddeclined, but by no means vanished. As late as2003, Khashoggi was negotiating with RichardPerle, a member of the Cheney-Rumsfeld cliquewho at 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,

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etc.; Scott, American War Machine, 158-62.

78 "Moss, Edward K. #172 646," CIA Memo of 19April 1967, NARA #104-10122-10006; CIAInspector General's Report on CIA-Mafia Plots toA s s a s s i n a t e F i d e l C a s t r o , N A R A #104-10213-10101, p. 38. Cf. memo of 7 November1962 in CIA's Edward K. Moss folder, p. 26,NARA #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; CIA letter of16 December 1960 to FBI, FBI file 105-76826-18;NARA #124-90055-10133. The CIA itself hadnotified the FBI on December 16, 1960, that Julia"Cellino" had advised that her brothers "havelong been associated in the narcotics and whiteslavery rackets in Cuba (CIA letter of 16December 1960 to Director, FBI, FBI File105-76826-18; NARA #124-90055-10133;apparently no copy of this letter has beenreleased from CIA files).

80 Kessler, Richest Man in the World, 29 (Yassin),275–78 (Khashoggi). A friend of Khashoggi's,Larry Kolb, reports that Khashoggi himselfessentially corroborated the story that Khashoggiand John Kennedy had a friendship in the 1950sthat "evolved primarily out of whoring together"(Larry J. Kolb, Overworld: The Life and Times ofa Reluctant Spy [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 of RichardNixon (New York: Viking, 2000), 283. Cf. Kessler,The Richest Man in the World, 171: Khashoggitold the prosecutors "that he churned millionsthrough the tiny [Rebozo] bank to win favor withthe 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, Sleepingwith the Devil (New York: Crown, 2003), 43.(Baer reports the year of the briefcase as 1968, not1972.) Kolb ("unequivocally, 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 to theParadise Island casino in the Bahamas (whereEdward Moss's brother-in-law Eddie Cellini wascasino manager, he did so on a Khashoggi plane.(Kessler, Richest Man, 149-50).

86 Summers with Swan, The Arrogance of Power,242, 252; Jim Hougan, Spooks, 398. Cf. DennyWalsh, 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 of Power,244-45, 253-54.

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

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90 In the course of Operation Safehaven, the U.S.Third Army took an SS major "on several trips toItaly and Austria, and, as a result of thesepreliminary trips, over $500,000 in gold, as wellas jewels, were recovered" (Anthony CaveBrown, The Secret War Report of the OSS [NewYork: 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" evenafter moving from Khashoggi's Club to apermanent headquarters in Cairo.

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 at BCCI,"New York Magazine, October 28, 1991, 20–21.

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

97 Mahmood Mamdani, Good Muslim, badMuslim: America, the Cold War, and the roots ofterror (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. Kevin Phillipsalso notes that "Bush cemented strong relationswith the intelligence services of both SaudiArabia and the shah of Iran. He worked closelywith 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," Los AngelesTimes, January 11, 2004.

103 There is no published evidence that Copelandwas involved in the Safari Club covertoperations. But it may be significant thatCopeland's activity of advising the EgyptianArmy became after the creation of the Safari Cluba franchise of a "private" U.S. firm, J.J. Cappucciand Associates, owned by Theodore Shackley(Trento, Prelude to Terror, 150, 247).

104 Trento, Prelude to Terror, 139.

105 There is no published evidence that Copelandwas involved in the Safari Club covertoperations. But it may be significant thatCopeland's activity of advising the EgyptianArmy became after the creation of the Safari Cluba franchise of a "private" U.S. firm, J.J. Cappucciand Associates, owned by Theodore Shackley(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: thecomplete history of Israel's intelligencecommunity (Boston: Houghton Mifflin, 1990),261; Mayn Katz, Song of Spies (HeliographicaPress, 2005) 136-37.

107 Samuel Segev ; translated by Haim Watzman,The Iranian triangle : the untold story of Israel'srole in the Iran-Contra (New York: The FreePress, 1988), 10. For the collaboration ofGreenspun, Schwimmer and Meyer Lansky ingun-running, see Leonard Slater, The Pledge(New York, Simon and Schuster, 1970). PaulHelliwell may have been part of this operation;see Scott, American War Machine, 71, 164.

108 Copeland, The Game Player, 263.

109 Kolb, Overworld, 246.

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110 Kolb, Overworld, 247.

111 Iran-Contra Affair, Report of the congressionalcommittees investigating the Iran-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)."

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; quotingfrom Peter Truell and Larry Gurwin, FalseProfits: The Inside Story of BCCI, the World'sMost Corrupt Financial Empire (Boston:Houghton Mifflin, 1992), 384 ("ties").

118 Alan A. Block and Constance A. Weaver, All isclouded 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 UKsigned the OECD's Anti-Bribery Convention,making such overpayments illegal.

120 Robert Lacey, Inside the Kingdom: Kings,Clerics, Modernists, Terrorists, and the Strugglefor Saudi Arabia (New York: Penguin Books,2009), 108.

121 Trento, Prelude to Terror, 102.

1 2 2 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 also ChurchCommittee, Final Report, Book 4, 28-29.

123 Former Turkish President and Prime MinisterSuleyman Demirel commented that "In ourcountry… there is one deep state and one otherstate…. The state that should be real is the spareone, the one that should be spare is the real one"(Jon Gorvett, "Turkey's 'Deep State' Surfaces inFormer President's Words, Deeds in KurdishT o w n(http://www.washington-report.org/archives/Jan_Feb_2006/0601037.html)," Washington Reporton Middle East Affairs, January/February 2006);quoted in Scott, American War Machine, 24.

Peter Dale Scott (/authors/view/9215)

Peter Dale Scott is a former Canadian diplomat and English Professor at the University ofCalifornia, Berkeley. His latest book is The American Deep State: Wall Street, Big Oil, and theAttack on U.S. Democracy (http://www.amazon.com/dp/1442214244/?tag=theasipacjo0b-20),being released this month by Rowman & Littlefield. He is also the author of Drugs Oil and War

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(http://amzn.com/0742525228?tag=theasipacjo0b-20), The Road to 9/11(http://amzn.com/0520237730?tag=theasipacjo0b-20), The War Conspiracy: JFK, 9/11, and theDeep Politics of War (http://amzn.com/0980121361?tag=theasipacjo0b-20), and American WarMachine: Deep Politics, the CIA Global Drug Connection and the Road to Afghanistan(http://amzn.com/0742555941?tag=theasipacjo0b-20). His website, which contains a wealth ofhis writings, is here (http://www.peterdalescott.net/q.html).