The Great Heroin Coup - Chapter 14

Note: This chapter was previously posted here, and became the motivation for additional background research. After posting the remainder of Henrik Kruger's book, we will pick up where we left off, back with the question, " Who engineered the heroin coup?"

Although Kruger began chapter fourteen of his book by going back in history to China in 1945, the elements involved in the heroin coup begin much earlier than that. Just as the Office of Strategic Services predated the Central Intelligence Agency, the Coordinator of Intelligence was the first method devised by the executive branch to collect intelligence abroad. 

Franklin Delano Roosevelt was elected in 1932, then again in 1934 and 1936. During his first year in office (1933) a real coup against his Presidency was averted when General Smedley Darlington Butler blew the whistle on mysterious American businessmen and bond brokers who had attempted to recruit  him to  serve as “assistant President,” a  so-called military straw man to prevent disgruntled World War I veterans from organizing a revolution against capitalism.

FDR would, therefore, have known by the time he ran in 1940, having completed three terms totaling twelve years in office, that he needed someone he could trust to gather intelligence for him. In July 1941 the President created the position of Coordinator of Information and appointed William J. Donovan to that post,  placing his eldest son James on its staff. 

A year earlier, following the fall of France to the Nazis in May 1940, President Roosevelt had devised a method of subsidizing the Allied forces while technically remaining neutral. The Neutrality Act had forbidden the U.S. to sell armaments on credit or to make loans to nations engaged in war. The Act was modified by a policy called "Cash and Carry," which morphed into Lend-Lease, which allowed the U.S. to "sell, transfer title to, exchange, lease, lend, or otherwise dispose of ... any defense article," if that country's defense was deemed vital to America's defense.

Because it was a method to pay for certain military goods, FDR had to appoint a banker to head the Office of Lend-Lease, and he chose one connected to the J.P. Morgan banking network--Edward Reilly Stettinius, Jr., the man he later chose to succeed Cordell Hull as Secretary of State. After FDR's death, Truman named Stettinius as the first U.S. Permanent Representative to the United Nations.

Proviso: Remember, it's always about the money. Follow it. It was the Morgan banking and corporate network which set up the Federal Reserve under Woodrow Wilson. Before that, Morgan bankers helped to incorporate opium profits of Americans and their Chinese partners into America's physical infrastructure. Opium had been the first commodity that produced huge surplus funds for Americans, the profits realized through sight drafts issued by London banks converting the silver paid by Cantonese traders into bank notes. One of the biggest Anglo-American banking concerns involved in sight drafts was the Brown family.

President Wilson's chief of staff, Colonel House, though a Texan, was very close to T.J. Coolidge, a member of the China-trading Coolidge family. Even though the combination of Stillman and Rockefeller had seemingly overtaken the Morgan investment portfolio with petroleum assets by the mid-1930's what had actually occurred was a merger of two banking empires (Morgan/Carnegie on the left and Stillman/Rockefeller on the right)  into one investment bank--Brown Brothers Harriman. Where the Gold Is has been leading up to this point in America's banking history, while Minor Musings left off exploring the same question some time ago with an article titled "The Power of the Browns." All these attempts at describing this elephant in the room are finally beginning to merge.

Selected Excerpt from

THE GREAT HEROIN COUP - DRUGS, INTELLIGENCE AND INTERNATIONAL FASCISM

By Henrik Kruger; Jerry Meldon, Translator

South End Press©1980: Box 68 Astor Station, Boston, MA 02123

ISBN 0-89608-0319-5

240pps - one edition - out-of-print; Orginally published in Danish

Smukke Serge og Heroien; Bogan 1976

Previous chapters:

Foreword and Chapter 1

Chapters 2-5

Chapters 6-8

Chapters 9-12  

Chapter 13

CHAPTER FOURTEEN

HEROIN IN SOUTHEAST ASIA

Opium and gold as primary exchange media

The place was Kunming in the South China province of Yunnan. The time was the end of World War II. Amid the chaos of war, opium and gold became the primary media of exchange, and cult‑like bonds were forged among a small staff of Americans and high‑ranking Chinese. Yunnan was a center of Chinese opium cultivation and Kunming was the hotbed of military operations, among them Claire Chennault's 14th Air Force and Detachment 202 of the Office of Strategic Services (OSS).

Among Detachment 202's notorious collection of special agents, one in particular—E. Howard Hunt—has needed no introduction since the Watergate break‑in. In Kunming, the spy novelist who later became a comrade of Cuban exiles and China Lobbyists befriended an equally intriguing character, the French Foreign Legionnaire turned OSS agent, Captain Lucien Conein.[1] Although not part of Detachment 202 proper, Conein frequented Kunming while awaiting parachuting over Indochina.[2]

Detachment 202 was not the first of its kind. As we learn from the CIA's own website: "On April 14, 1942, William Donovan, as Coordinator of Information (forerunner of the Office of Strategic Services), activated Detachment 101 [under Carl F. Eifler] for action behind enemy lines in Burma. The first unit of its kind, the Detachment was charged with gathering intelligence, harassing the Japanese through guerrilla actions, identifying targets for the Army Air Force to bomb, and rescuing downed Allied airmen. Because Detachment 101 was never larger than a few hundred Americans, it relied on support from various tribal groups in Burma. In particular, the vigorously anti-Japanese Kachin people were vital to the unit’s success. By the time of its deactivation on July 12, 1945, Detachment 101 had scored impressive results."

Indochina remained Conein's base of operation after World War II, when, like Hunt, he slid over from the OSS to its successor, the CIA. He then operated throughout South and North Vietnam, Cambodia, and Burma, and became the top U.S. expert on the area‑as well as on the opium‑smuggling Corsican Mafia. He was Ambassador Henry Cabot Lodge's middle man in the 1963 plot to overthrow South  Vietnam's President Ngo Dinh Diem (who was assassinated along with his brother Ngo Dinh Nhu, the Corsicans' partner in the drug traffic). A decade later, Conein and Hunt, working for the Nixon White House Plumbers, would attempt to make it appear that the plot had been ordered by JFK. Both Conein and William Colby, mastermind of the CIA's Phoenix assassination program, were recalled to the U.S. at the start of the seventies.

C. V. Starr

After Mao Tse‑tung's rise to power in China, OSS veterans formed a number of firms that would be linked both to the CIA and to its reactionary client regimes in the Far East. With financial assistance from his friends in Asia, OSS China hand C.V. Starr gained control of several U.S. insurance companies. As brought to light during the McClellan hearings, Jimmy Hoffa awarded one of them, U.S. Life, and a smaller company, Union Casualty —whose agents Paul and Allen Dorfman were among Hoffa's links to the underworld[3] —a Teamsters Union contract despite a lower bid from a larger, more reputable insurance firm.[4]

Starr's attorney was the powerful Washington‑based Tommy "The Cork" Corcoran. Corcoran's law partner, William Youngman [married to a descendant of Robert Bennet Forbes], was a director of U.S. Life. Corcoran's other clients included

• the United Fruit Company, 
• Chiang Kai‑shek's influential brother‑in‑law T.V. Soong, and 
• the mysterious airline, Civil Air Transport (CAT), of which 60 percent was owned by the Taiwan regime and 40 percent by the CIA.[5] 

On behalf of United Fruit, Corcoran triggered a CIA plot — in which E. Howard Hunt was the agency's chief political action officer — to overthrow Guatemala's President Jacobo Arbenz in 1954.[6]

OSS China hand Willis Bird settled in Bangkok, Thailand to head an office of Sea Supply, Inc., a CIA proprietary headquartered in Miami, which furnished weapons to opium‑smuggling Nationalist Chinese (KMT) troops in Burma. One William Bird, representing CAT in Bangkok, coordinated CAT airdrops to KMT troops and ran an engineering firm that constructed short airstrips used for the collection of Laotian opium.[7]

Sea Supply also provided arms and aid to Phao Sriyanonda, the head of Thailand's 45,000‑man paramilitary police force and reputedly one of the most corrupt men in the history of that corruption‑ridden nation. For years his troops protected KMT opium smugglers and directed the drug trade from Thailand.[8]

When President John F. Kennedy in 1962 attempted a crackdown on the most hawkish CIA elements in Indochina, he sought the prosecution of Willis Bird, who had been charged with the bribery of an aid official in Vientiane. But Bird never returned to the U.S. to stand trial.

Upon returning to Miami, the OSS Chief of Special Intelligence and head of Detachment 202 in Kunming, Colonel Paul Helliwell, was a busy man. In Miami offices of the American Bankers Insurance Co. [apparently incorporate in Nevada], he functioned simultaneously as the Thai consul, an the counsel for Sea Supply as well as for insurance companies run by his former subordinate C.V. Starr.[9] American Bankers Insurance was itself a most unusual firm; one of its directors, James L. King, was also a director of the Miami National Bank through which the Lansky syndicate reportedly passed millions en route to Geneva's Swiss Exchange and Investment Bank. One of the Swiss bank's directors, Lou Poller, also sat on the board of King's Miami National Bank.[10]

Moreover, in the fifties and sixties, Thai and Nationalist Chinese capital was invested in Florida's explosive development, much of it by way of the General Development Corporation controlled by associates of Meyer Lansky.[11] It's important to note the dubious alliance of Southeast Asian power groups with those concerned with Florida and Cuba. This early mutuality of business interests is the key to all that follows, and Miami is the nerve center to which we will continually return.

The alliance was comprised of the China Lobby, OSS China hands, Cuban exiles, the Lansky syndicate, and CIA hawks pushing for all‑out involvement in Indochina and against Castro's Cuba. It coalesced between 1961 and 1963, and its members had three things in common: a right wing political outlook, an interest in Asian opium, and a thirst for political might. The last factor led to another common denominator in which the alliance invested heavily: Richard M. Nixon.

Some people effectively overlap the entire spectrum of the alliance. Among them are Howard Hunt and Tommy Corcoran, the man behind United Fruit's dirty work. United Fruit was a client of the Miami‑based Double‑Chek Corp., a CIA front that supplied planes for the Bay of Pigs invasion.[12] Corcoran was the Washington escort of General Chennault's widow Anna Chen Chennault, erstwhile head of the China Lobby, the key to Southeast Asian opium.[13]

Another key figure in the China Lobby was weapons dealer/financier William Pawley, the American co-founder of Chennault's Flying Tigers.[14] Pawley's name was the password to intrigue: OSS China, Tommy Corcoran,[15] CIA cover firms,[16] and arms shipments to KMT Chinese on Taiwan in defiance of a State Department refusal of authorization." All were either directly or indirectly connected to Pawley. He also rubbed elbows with the U.S. heroin Mafia when, in 1963, he, Santo Trafficante, Jr. and Cuban exiles took part in one of the countless boat raids on Cuba.[18]

The China Lobby's Southeast Asian connection naturally went via the Taiwan regime, which controlled the opium‑growing Chinese in the Golden Triangle and, with the CIA, owned the opium‑running CAT airlines. As Ross Y. Koen wrote in 1964:

"There is considerable evidence that a number of Nationalist Chinese officials are engaged in the illegal smuggling of narcotics into the United States with the full knowledge and connivance of the Nationalist Chinese government. The evidence indicates that several prominent Americans have participated in and profited from these transactions. It indicates further that the narcotics business has been an important factor in the activities and permutations of the China Lobby." [19]

British writer Frank Robertson went one step further in 1977:

"Taiwan is a major link in the Far East narcotics route, and a heroin producer. Much of the acetic anhydride -‑ the chemical necessary for the transformation of morphine into heroin -‑ smuggled into Hong Kong and Thailand, comes from this island, a dictatorship under the iron rule of the late Chiang Kai‑shek's son, Chiang Chingkuo."[20]

When the Communists routed Chiang Kai‑shek's forces in 1949, some 10,000 KMT troops fled to Southeast Asia and settled in a remote part of Burma. Heavily armed, they soon assumed control of the area and intermarried with the local population. Under General Li Mi they continued to infiltrate China proper, but each time they were repulsed. While awaiting Chiang's signal for a final, two‑front onslaught, Burma's KMT army needed a source of income. Many had grown opium in Yunnan and so the poppies, which flourished on the hillsides, became the force's cash crop.

Around 1950 the CIA became interested in the KMT troops. With General Douglas MacArthur pushing to arm them for an attack on Red China, the agency secretly flew them weapons in CAT airplanes. But when the KMT instead used the weapons against the Burmese army, Burma protested before the UN, where it was decided that 2000 KMT troops would be flown by CAT to Taiwan by 1954. Those who eventually made the trip, however, were only farmers and mountain people in KMT uniforms, and the weapons they took out were obsolete.[21] Nonetheless, with help from the Red Chinese army, Burma drove most of the KMT forces into Thailand and Laos, though many later returned. The Kuomintang and their kin now number over 50,000. Though only a fraction are soldiers, the KMT still controls hundreds of thousands of Chinese occupying the region, especially in Thailand.

The junction of Burma, Thailand, and Laos, the Golden Triangle, is the site of the bulk of the world's opium production and thereby the source of enormous fortunes for the French and later the Americans. The French held effective control over the Southeast Asian opium traffic until 1965. Between 1946 and 1955 the Mixed Airborne Commando Group (MACG) and the French Air Force managed the shipment of opium from Burma to Laos. A guerilla corps comprised mostly of Laotian Meo tribesmen and led by Colonel Roger Trinquier, MACG remained unusually independent despite its direct connections to the SDECE and Deuxieme (Second) Bureau. To finance their secret Indochina operations, these organizations turned to the smuggling of gold and opium, with MACG in charge of the latter. Large quantities of opium were shipped to French Saigon headquarters and passed on to the Corsican Mafia, who in turn smuggled the drug to Marseille.

When the French withdrew from Indochina in 1955 after their defeat by the Vietminh, and after the CIA pushed aside the SDECE, MACG leaders communicating through CIA agent Lucien Conein offered the Americans their entire guerilla force. Against Conein's advice they refused.[22] History would cast doubt on the wisdom of that decision.

In 1955 CIA agent General Edward Lansdale began a war to liquidate the Corsican supply network. While Lansdale was cracking down on the French infrastructure, his employer the CIA was running proprietaries, like Sea Supply and CAT, that worked hand‑in‑hand with the opium‑smuggling Nationalist Chinese of the Golden Triangle, and with the corrupt Thai border police.[23]

The Lansdale/Corsican vendetta lasted several years, during which many attempts were made on Lansdale's life. Oddly enough, his principal informant on Corsican drug routes and connections was the former French Foreign Legionnaire, Lucien Conein, then of the CIA. Conein knew just about every opium field, smuggler, trail, airstrip, and Corsican in Southeast Asia. He spent his free time with the Corsicans, who considered him one of their own. Apparently they never realized it was he who was turning them in.[24]

When Lansdale returned from Vietnam in the late fifties, the Corsicans recouped some of their losses, chartering aging aircraft to establish Air Opium, which functioned until around 1965. That year, the Corsicans' nemesis Lansdale returned to Vietnam as an advisor to Amabassador[sic] Lodge. There was also an upheaval in the narcotics traffic, and perhaps the two were connected. CIA‑backed South Vietnamese and Laotian generals began taking over the opium traffic — and as they did so, increasing amounts of morphine and low‑quality heroin began showing up on the Saigon market.

The first heroin refineries sprang up in Laos under the control of General Ouane Rattikone. President Ky in Saigon was initially in charge of smuggling from the Laotian refineries to the South Vietnamese; and Lansdale's office, it is to be remembered, was working closely with Ky. Lansdale himself was one of Ky's heartiest supporters, and Conein went along with whatever Lansdale said.[25]

Ouane Rattikone

One result of the smuggling takeover by the generals was the end of the Corsicans' Air Opium. The KMT Chinese and Meo tribesmen who cultivated raw opium either transported it themselves to the refineries or had it flown there by the CIA via CAT and its successor, Air America, another agency proprietary. Though the Corsicans still sent drugs to Marseilles, the price was becoming prohibitive, since they were forced to buy opium and morphine in Saigon and Vientiane rather than pick up the opium for peanuts in the mountains.

In 1967 a three‑sided opium war broke out in Laos between a Burmese Shan State warlord, KMT Chinese and General Rattikone's Laotian army. Rattikone emerged victorious, capturing the opium shipment with the help of U.S.‑supplied aircraft. The KMT, for its part, managed to reassert its dominance over the warlord. The smuggling picture was becoming simplified, with Southeast Asian opium divided among fewer hands, and most of the Corsicans out of the way.

General Lansdale returned to the U.S. in 1967, leaving Conein in Vietnam. The next year Conein greeted a new boss, William Colby. Since 1962 Colby had run the agency's special division for covert operations in Southeast Asia, where his responsibilities included the " secret" CIA war in Laos with its 30,000‑man Meo army. He shared that responsibility with the U.S. ambassador [sic] in Laos, William H. Sullivan, who would later preside over the Tehran embassy during the fall of the Shah.

Many of the agents who ran the CIA's war in Laos had earlier trained Cuban exiles for the Bay of Pigs invasion, and afterward had taken part in the agency's continued secret operations against Cuba.[26] Since exiles were furnished by the Trafficante mob,[27] intelligence agents had intermingled with representatives of America's number one narcotics organization. The same agents would now become involved with the extensive opium smuggling from Meo tribesmen camps to Vientiane.[28]

In 1967 Colby devised a plan of terror for the "pacification" of Vietnam. Operation Phoenix organized the torture and murder of any Vietnamese suspected of the slightest association with Vietcong. Just as Lansdale was travelling home, Colby was sent to South Vietnam to put his brainchild to work. According to Colby's own testimony before a Senate committee, 20,857 Vietcong were murdered in Phoenix's first two years. The figure of the South Vietnamese government for the same period was over 40, 000.[29[

It was during Colby's tour in Vietnam that the heroin turned out by General Ouane Rattikone's labs appeared in quantity, and with unusually high quality. The great heroin wave brought on a GI addiction epidemic in 1970; Congressional reports indicated that some 22 percent of all U.S. soldiers sampled the drugs and 15 percent became hooked.[30]

Former Air Marshal, then Vice President, Nguyen Cao Ky (now alive and well in the United States) and his underlings still controlled most of the traffic. President Nguyen Van Thieu and his faction, comprised mostly of army and navy officers, were also in it up to their necks. According to NBC's Saigon correspondent, Thieu's closest advisor, General Dang Van Quang, was the man most responsible for the monkey on the U.S. Army's back. But the U.S. Saigon embassy, where Colby was second in command, found no substance to the accusations, Ky's record notwithstanding: Ky had been removed from U.S. Operation Haylift, which flew commando units into Laos, for loading his aircraft with opium on the return trips.

In the face of skyrocketing GI heroin abuse, the Army Criminal Investigation Division (CID) looked into General Ngo Dzu's complicity in the heroin traffic and filed a lengthy report at the U.S. embassy.[31] The embassy ignored the report and chose not to forward it to Washington.[32] The BNDD also investigated the roots of the heroin epidemic, but was impeded in its work by the CIA and U.S. embassy. In 1971, however, a string of heroin labs were uncovered in Thailand, and a number were closed down.

In 1971, furthermore, Colby and Conein were recalled to the United States. Colby became the Deputy Director of Operations, the man in charge of the CIA's covert operations. More remarkable, though, was Conein's homecoming after twenty‑four years of periodic service to the CIA in Indochina, raising the question of why the U.S.'s foremost expert on Indochina had been brought back to Washington just as the crucial phase of Vietnamization was about to begin.[33] Ironically, Corsican friends still around for Conein's departure presented him with a farewell gold medallion bearing the seal of the Corsican Union.

At the war's cataclysmic end, the CIA admitted that "certain elements in the organization" had been involved in opium smuggling and that the illegal activities of U.S. allies had been overlooked to retain their loyalties. In reality, the agency had been forced to confess because of its inability to refute the tales of returning GIs, among them that of Green Beret Paul Withers, a recipient of nine Purple Hearts, the Distinguished Service Cross and Silver and Bronze Stars:

"After completing basic training at Fort Dix in the fall of 1965 [Withers] was sent to Nha Trang, South Vietnam. Although he was ostensibly stationed there, he was placed on 'loan' to the CIA in January 1966 and sent to Pak Seng, Laos. Before going there he and his companions were stripped of their uniforms and all American credentials. They were issued Czechoslovakian guns and Korean uniforms. Paul even signed blank sheets of paper at the bottom and the CIA later typed out letters and sent them to his parents and wife. All this was done to hide the fact that there were American troops operating in Laos.

"The mission in Laos was to make friends with the Meo people and organize and train them to fight the Pathet Lao. One of the main tasks was to buy up the entire local crop of opium. About twice a week an Air America plane would arrive with supplies and kilo bags of opium which were loaded on the plane. Each bag was marked with the symbol of the tribe."[34]

The CIA, reportedly, did not support any form of smuggling after 1968. Del Rosario, a former CIA operative, had something to say about that:

"In 1971 I was an operations assistant for Continental Air Service, which flew for the CIA in Laos. The company's transport planes shipped large quantities of rice. However, when the freight invoice was marked 'Diverse' I knew it was opium. As a rule an office telephone with a special number would ring and a voice would say 'The customer here'-‑that was the code designation for the CIA agents who had hired us. 'Keep an eye on the planes from Ban Houai Sai. We're sending some goods and someone's going to take care of it. Nobody's allowed to touch anything, and nothing can be unloaded,' was a typical message. These shipments were always top priority. Sometimes the opium was unloaded in Vientiane and stored in Air America depots. At other times it went on to Bangkok or Saigon.[35]

Even while the CIA trafficked in opium, President Nixon ranted on TV against drug abuse and lauded the crackdown against French smuggling networks.

pps. 129-139

Notes

1. E.H. Hunt: Undercover (Berkeley‑Putnam, 1974).

2. Another of Conein's OSS sidekicks, Mitchell WerBell 111, was years later indicted in a major drug conspiracy case (T. Dunkin: "The Great Pot Plot," Soldier of Fortune, Vol. 2, No. 1, 1977), and now runs an antiterrorist training school in Georgia (T. Dunkin: "WerBell's Cobray School," Soldier of Fortune, Vol. 5, No. 1, 1980).

3. D. Moldea: The Hoffa Wars (Charter Books, 1978).

4. U.S. Congress, Senate, Select Committee on Improper Activities in the Labor or Management Field, Hearings, 85th Cong., 2nd Sess. (cited in P.D. Scott: The War Conspiracy, Bobbs‑Merrill, 1972).

5. CAT, which became Air America, was also identical with the "CATCL" that emerged from Claire Chennault's Flying Tigers.

6. D. Wise and T.B. Ross: The Invisible Government (Random House, 1964); Hunt, op. cit.

7. Scott, op. cit.

8. F. Robertson: Triangle of Death (Routledge and Keagen Paul, 1977); A. McCoy: The Politics of Heroin in Southeast Asia (Harper & Row, 1972).

9. Scott, op. cit.

10. New York Times, 1 December 1969; H. Messick: Lansky (Berkeley, 1971). 11. Carl 0. Hoffmann, the former OSS agent and general counsel of the Thai king in New York in 1945‑50, later became the chairman of Lansky associates' First Florida Resource Corp.

12. L. Gonzalez‑Mata: Cygne (Grasset, 1976).

13. R.Y.Koen: The China Lobby in American Politics (Harper& Row, 1974). 14. Pawley, the ultraconservative former Pan Am executive and Assistant Secretary of both State and Defense, set up the Flying Tigers under a secret order of President Franklin D. Roosevelt exempting him from U.S. neutrality provisions; see A. Chan Chennault: Chennault's Flying Tigers (Eriksson, 1963).

15. Corcoran assisted in the establishment of the Flying Tigers and later Civil Air Transport; see Scott, op. cit.

16. Lindsey Hopkins, Jr., whose sizable investments included Miami Beach hotels, was an officer of the CIA proprietary, Zenith Technical Enterprises of Bay of Pigs note. He was also an officer of the Sperry Corp., through whose subsidiary, the Intercontinental Corp., Pawley helped found the Flying Tigers in 1941. Pawley was Intercontinental's president. See Scott, op. cit.

17. U.S. Congress, Senate, Committee on Judiciary, Communist Threat to the United States through the Caribbean, Hearings, 86th Cong., 2nd Sess. (cited in Scott, op. cit.).

18. See chapter fifteen; it has also been revealed that a prominent Chinese

American, Dr. Margaret Chung of San Francisco, who was a major supporter

of the Flying Tigers, trafficked in narcotics together with the Syndicate; see P.D. Scott: "Opium and Empire," Bulletin of Concerned Asian Scholars, September 1973.

19. Koen, op. cit. 20. Robertson, op. cit.. After a one‑year suspension, the U.S. State Department recently approved the sale of $280 million in military weaponry to the repressive Taiwan regime (New York Times, 20 January 1980), the same regime whose disdain for human rights was most recently expressed by the preparation of cases of sedition against sixty‑five opposition demonstrators (New York Times, 24 January 1980). The CIA's Taiwan station chief in the late fifties and early sixties, when the unholy alliances were forged, was Ray S. Cline. Closely associated with the China Lobby, Cline became famous for his drunken binges with Chiang Ching‑kuo, currently the president of Taiwan (see V. Marchetti and J.D. Marks: CIA and Cult of Intelligence, Jonathan Cape, 1974). A CIA hawk, Cline also helped a gigantic Bay of Pigs‑style invasion of the Chinese mainland which was rejected by President Kennedy. Cline is currently the "director of world power studies" at Georgetown's Center for Strategic and International Studies (CSIS), which, according to writer Fred Landis ("Georgetown's Ivory Tower for Spooks," Inquiry, 30 September 1979), "is rapidly becoming the New Right's most sophisticated propaganda mill." In testimony before the House Select Committee on Intelligence, Cline defended CIA manipulation of the press, saying "You know that first amendment is only an amendment."

21. McCoy, op. cit.

22. D. Warner: The Last Confucian (Angus & Robertson, 1964). 23. McCoy, op. cit.

24. Conein told writer McCoy: "The Corsicans are smarter, tougher and better organized than the Sicilians. They are absolutely ruthless and are the equal of anything we know about the Sicilians, but they hide their internal fighting better." (McCoy, op. cit.).

25. McCoy, op. cit.

26. T. Branch and G. Crile III: "The Kennedy Vendetta," Harper's, August 1975.

27. U.S. Congress, Senate, Select Committee to Study Governmental Operations with respect to Intelligence Activities, Alleged Assassination Plots Involving Foreign Leaders, Interim Report, 94th Cong., 1st Sess. Senate Report No. 94‑463, 1975.

28. C. Lamour and M.R. Lamberti: Les Grandes Maneuvres de l'0pium (Editions du Seuil, 1972); McCoy, op. cit.; Committee of Concerned Asian Scholars: The Opium Rail (New England Free Press, 1971).

29. Marchetti and Marks, op. cit.

30. Congressman M.F. Murphy and R.H. Steele: The World Heroin Problem (U.S. Govt. Printing Office, 1971).

31. Like Nguyen Cao Ky, Ngo Dzu came to the U.S. as a refugee after the final debacle in South Vietnam. Though accused by Rep. Steele of responsibility for the addiction of thousands of GIs to heroin, Dzu went about as a free man until his 13 February 1977 death in Sacramento of apparent heart failure.

32. McCoy, op. cit.

33. Conein's summons home coincided with Howard Hunt's recruitment by the White House and the creation of the special narcotics and Plumbers groups. 34. Committee of Concerned Asian Scholars, op. cit. 35. Lamour and Lamberti, op. cit. (quote retranslated from the French).

Continued here.

How Opium Merchants Used Bankers, and Vice Versa

American Merchants and the China Opium
Trade, 1800-1840

Jacques M. Downs
PROFESSOR OF HISTORY
ST. FRANCIS COLLEGE
BIDDEFORD, MAINE

American merchants influenced the increase in opium importations of the 1830's. The great opium merchants, Jardine, Matheson and Company, sent out a circular in 1831 announcing, "It is generally in our power to remit funds to England on more advantageous terms than can be effected in Bombay."

Thus, an American merchant would take out a bill on a London bank permitting him to draw, say 20,000 pounds sterling, payable six months from sight. He would sell the bill to smugglers at Canton (e.g., Jardine, Matheson) for the silver which the latter had acquired from their opium sales. Of course, the bill trade was good for everyone. It freed the Americans from the onerous necessity of a long cruising voyage to amass sufficient specie to finance a China cargo; it released the opium smuggler from burdensome problems of exporting large quantities of valuable metal; and it gave Indian nabobs a convenient method of sending home their fortunes. Since India suffered from a chronically unfavorable balance of trade with England, the American bill trade proved a real boon. Moreover, the bills paid interest. Briefly, opium was balancing East-West trade through the American commerce in London bills.

Thereafter, the opium trade could not be extirpated without seriously damaging world commerce. In fact, there is reason to believe that the bill trade actually stimulated Indian opium exports.

"Bombay merchants annually sent vast amounts, usually in the shape of Malwa opium to Canton for the sake of a favorable remittance to England."[fn]

In this fashion, even the most bitterly anti-opium merchants unwittingly contributed to the growth of the commerce they so strongly detested.

[fn] Michael Greenberg, British Trade and Opening of China, (Cambridge, 1951),164. See also Joseph Archer to G. and S. Higginson, October 21, 1833, Joseph Archer Letterbook, Historical Society of Pennsylvania, Philadelphia.

The Great Heroin Coup - Chapter 13

In chapter 13 Henrik Kruger gives us a timeline of events during Richard Nixon's presidency which led up to the Watergate affair. We should remember, as Nixon prepared to leave office, he turned to none other than George H. W. "Poppy" Bush as the only man he could trust.

We will, therefore, insert in brown type the interactions between Bush and Nixon into the timeline below .

fifteen months in Beijing from 1974-75

 Selected Excerpts from

THE GREAT HEROIN COUP - DRUGS, INTELLIGENCE AND INTERNATIONAL FASCISM

By Henrik Kruger; Jerry Meldon, Translator

South End Press©1980: Box 68 Astor Station, Boston, MA 02123

ISBN 0-89608-0319-5

240pps - one edition - out-of-print; Orginally published in Danish

Smukke Serge og Heroien; Bogan 1976

Previous chapters:

Foreword and Chapter 1

Chapters 2-5

Chapters 6-8

Chapters 9-12 

CHAPTER THIRTEEN

THE FATEFUL DAYS: A CHRONOLOGY OF THE HEROIN COUP

"We have turned the corner on heroin," declared a proud Richard Nixon [in 1974] after the massacre of the Corsican Mafia. But shutting off the pipeline of heroin from Marseille did not produce the shortage he predicted. Except for a brief period in 1973, the supply increased, tremendously. By 1975 the heroin glut far surpassed even that of the Corsican heyday of the late sixties. According to a 1977 report of the House Select Committee on Narcotics Abuse, heroin addiction had doubled in four years. One year later New York's special narcotics prosecutor, Sterling Johnson, Jr. stated: 

"There is more dope on the streets now than at any time since the late sixties and early seventies, when we had an epidemic going. We've got another epidemic, and more critical."[1]

When the heroin flow from Marseille was shut off in 1972‑73, two new sources of supply immediately filled the vacuum. 

• Southeast Asia-‑Laos, Burma and Thailand-‑suddenly produced vast amounts of white no. 4 heroin, the type that supposedly could only be produced by Marseilles chemists. The high quality heroin went primarily to the 40 percent of all U.S. heroin addicts who were living in New York, and who were accustomed to Marseille heroin. 
• The other new source was Mexico. But its product, the less pure "brown sugar," served mainly to regulate the market and to generate new customers.

The remarkable switch from Turkey‑Marseille‑U.S.A. to Southeast Asia‑Mexico‑U.S.A. shifted billions of dollars and the power that comes with it. Such a market revolution could not have happened without astute planning and direction, which demanded political savvy and political cooperation. 

The plans for this tremendous heroin coup were on somebody's drawing board before Nixon and Georges Pompidou met in early 1970. They were made long before Attorney General John Mitchell and French Justice Minister Raymond Marcellin met in Paris on 26 February 1971, when they signed the anti-narcotics agreement that led to the eradication of the Corsican drug Mafia. Most probably they were in place by 1968.

The occurrence of such a conspiratorial heroin coup is, of course, a hypothesis. In the following chapters I will trace the logic and the likelihood of its having transpired.

KRUGER'S HYPOTHESIS:

Involved in one way or another in the planning, the execution, or both, were:

1.   President Nixon and part of the White House staff;

2.   Meyer Lansky's corporate gangster syndicate--in particular its Cuban exile wing run by Florida capo Santo Trafficante, Jr.;

3.   The Cuba/China lobby;

4.   Ultra-reactionary forces in Southeast Asia, primarily the Kuomintang Chinese on Taiwan and in the Golden Triangle; and

5.   Intelligence and law enforcement factions of the CIA and BNDD/DEA.

 [Note from editor: It seems Kruger omitted one crucial element, however. He did not "follow the money." There is no mention of who would be laundering the profits, and why the shift was deemed to be necessary. Implicit in the term coup is the overthrow of one party in power by another, or in this case the supplanting of one group of bankers for another. Most people are not aware of the fact that George H.W. Bush's father, Prescott Bush, was a partner in the investment banking firm, Brown Brothers Harriman. It was for that firm, or rather for the powerful moneyed interests for whose benefit the firm worked, that George Bush actually worked. We can best determine how those interests were involved in the coup Kruger describes by adding George Bush to the timeline below, in brown type to distinguish it from Kruger's actual text.]

It was, needless to say, not a willful conspiracy of all the above. But we can assert with reasonable certainty that the CIA, Trafficante, and other mafiosi, certain Southeast Asians, and some people in the White House must have been in the know.

The plan took three years to execute. Though the major maneuvers began in 1970, one could detect the opening skirmishes soon after Nixon's election victory in 1968:

Kruger's Timeline:

• Henry Kissinger put pressure on Paraguay to extradite Auguste Ricord, the main Corsican supplier of narcotics to the U.S. market.[2] Paraguay's President Alfredo Stroessner at first chose to ignore that pressure.[3]

• In 1968 the Mafia's premier heroin importer, Santo Trafficante, Jr., travelled to Southeast Asia to check out possibilities for a new supply network involving Chinese opium merchants.[4] When he made the trip, the Corsican Mafia was supplying Trafficante with all the no. 4 heroin he could sell.

• Nixon and Pompidou met in January 1970 to restore close Franco‑American partnership. It was a crucial step in the destruction of the French narcotics apparatus that controlled 80 percent of the heroin trade.

• At the start of July 1970, White House staffer Egil Krogh proposed Operation Heroin, a major action against the narcotics smugglers. His idea was approved.

• U.S. Mafia capos held a summit July 4‑16 at the Hotel Sole in Palermo, Sicily. There they decided to pour money into Southeast Asia and transform it into the main source of heroin.[5]

• On 23 July 1970 Richard Nixon approved the Huston Plan to establish an espionage group that would supersede existing intelligence and enforcement agencies. The super‑group was to be steered from the White House, thus giving the president effective control over all intelligence--including domestic spying on U.S. citizens. The plan fell through, mostly due to the opposition of J. Edgar Hoover. However, the White House continued to develop the plan under cover of its fast‑growing, media‑hyped narcotics campaign.

• In August 1970 the Corsicans, apparently informed of the outcome of the Palermo meeting weeks earlier, called their Southeast Asian connections to an emergency meeting at Saigon's Continental Hotel. Thereafter two loads of morphine base would be sent to Marseille each month.[6] However, the shipments were continually sabotaged, and rarely arrived at their destination.

• Another major development in 1970 was the implementation of Nixon's Vietnamization program, through which the controls in Vietnam were returned to the CIA. The program pumped a fortune into South Vietnam, much of it pocketed by officials. Investigations of endemic corruption among non‑coms and senior U.S. Army personnel led to a Hong Kong office run by a lieutenant of drug czar Trafficante.[7]

• Pure no. 4 heroin appeared in Saigon in 1970, creating an epidemic of addiction among GIs. All previously available heroin had been of the coarse form that could only be smoked. The new heroin wave was hushed up. There were two other significant developments in 1970: (1) to end persistent rivalry among customs, the Internal Revenue Service (IRS) and the Bureau of Narcotics and Dangerous Drugs (BNDD), Nixon named the BNDD the sole U.S. representative on drug matters; and (2) the Mafia dispatched the notorious Tomasso Buscetta to Brazil to prepare a takeover of narcotics smuggling upon Auguste Ricord's extradition to the U.S.

• On 26 February 1971 France and the United States signed the definitive agreement for a combined assault on heroin. Within days Ricord was sentenced in absentia. On April 6 Roger Delouette was picked up in New York. As detailed in chapter ten, after that the Corsican network collapsed quickly.

George H. W. Bush was appointed to be Ambassador to the United Nations two days after the agreement was signed, his term beginning on March 1, 1971, replacing a career diplomat, Charles Woodruff Yost, a friend of the Dulles brothers' uncle, Secretary of State Robert Lansing. 

Yost had been called out of retirement when Nixon was inaugurated in 1969 to serve in that post. During his career Yost served as Ambassador to Laos (1955-1956) and Morocco (1958–1961), succeeded at Rabat by Philip W. Bonsal. Bonsal arrived in Morocco by way of Colombia (1955), Bolivia (1956 to 1959, and Cuba (appointed February 16, 1959 until mission was terminated October 28, 1960). Bonsal was the last U.S. Ambassador to Cuba.

• On 27 May 1971 Congressmen Morgan Murphy and Robert Steele issued their report, The World Heroin Problem. Among their sensational findings was that some 15 percent of the GIs in Vietnam were addicted to heroin. The causes were easy to identify. Most obvious was the sudden appearance of enormous quantities of no. 4 heroin. Fourteen‑year old girls sold 90 percent pure heroin for peanuts. Pushers stuffed it into soldiers' pockets free of charge. Add to that the crackdown that effectively eliminated marijuana and hash from the barracks.

• On the day the Murphy‑Steele report was issued, Nixon, John Erlichman, and Krogh agreed to secretly budget $100 million for a covert BNDD kidnaping and assassination program. Before that the White House had asked BNDD director John Ingersoll to draft a plan for "clandestine law enforcement" that would include assassination of major traffickers.[8]

• Days later Nixon set up a special narcotics action and intelligence group right in the White House. In the same period the Special Investigation Unit (the infamous Plumbers) set up shop in Room 16 of the Executive Office Building. The two groups overlapped, and several of their members were associates of Mafia kingpin Trafficante.

• On 17 June 1971 Nixon, on television, declared war on narcotics: "If we cannot destroy the drug menace in America, then it will destroy us. I am not prepared to accept this alternative."

• On 30 June 1971 the United States and Turkey signed an agreement that would halt Turkish opium cultivation. In return the U.S. handed the Turkish government $30 million.

• On 1 July 1971 Nixon advisor Charles Colson recruited former CIA agent Howard Hunt as a White House consultant.[9] Hunt and Gordon Liddy would work out of Room 16 on narcotics intelligence, one of Hunt's specialties.

• On 25 July 1971 the Asian Peoples Anti‑Communist League (APACL) and World Anti‑Communist League (WACL) met in Manila. The two international lobbies for the Nationalist Chinese, prime bankrollers of international opium and heroin smuggling, angrily attacked Nixon for his approaching trip to Peking. [10]

•  In August 1971 the BNDD announced the location in Southeast Asia of twenty‑nine drug refineries, fifteen of them allegedly producing heroin. Among the largest was one in Vientiane, Laos, which was camouflaged as a Pepsi Cola plant. Nixon, representing Pepsi's interests in 1965, had promoted its construction. Though the plant never capped a bottle, it continued to be subsidized by U.S.A.I.D.[11]

• In October 1971 top BNDD analyst John Warner told an interviewer that the continued flooding of the U.S. heroin market, despite the shutdown of French supply routes, indicated that more than the previously assumed 5 percent of U.S. heroin was originating in Southeast Asia.

• On 1 November 1971 BNDD agents arrested a diplomat attached to the Philippine embassy in Laos, and a Chinese journalist from Thailand, attempting to smuggle forty kilos of heroin into the U.S.A. That same year BNDD agents at JFK airport arrested the son of Panama's ambassador to Taiwan with fifty kilos of heroin. Finally, and most dramatically, Parisian police nabbed the Laotian Prince Chao Sopsaisana attempting to smuggle in sixty kilos. Sopsaisana, the head Laotian delegate to the APACL, was about to become Laos' emissary in Paris.[12]

The focus nevertheless remained on the French narcotics traffickers. Nixon could also produce results in the newly arisen Southeast Asian danger zone, but those amounted to the smashing of the remnants of the Corsican Mafia and their Southeast Asian supply network.

Through it all the U.S. supported Marshall Nguyen Cao Ky and other South Vietnamese politicians known to be making immense profits from the heroin traffic. When U.S. reporters exposed Ky's narcotics airlift, the CIA station and U.S. embassy in Saigon issued blanket denials. [13]

• In late 1971 BNDD director Ingersoll issued the following statement: "The CIA has for some time been this Bureau's strongest partner in identifying foreign sources and routes of illegal trade in narcotics. Liaison between our two agencies is close and constant in matters of mutual interest. Much of the progress we are now making in identifying overseas narcotics traffic can, in fact, be attributed to CIA cooperation." [14]

The catch was that BNDD "progress" and CIA "cooperation" went only as far as the French Mafia. CIA cooperation on Southeast Asia was another matter. The agency hindered BNDD agents and kept the press in the dark, while itself smuggling large quantities of opium via Air America.[15] A notable discrepancy arose in 1972 between CIA and BNDD estimates of the heroin traffic. CIA reports had 25 percent of the heroin coming from Mexico, the rest from Marseilles. The BNDD estimated that Southeast Asia already supplied 30 percent of the heroin on the U.S. market.[16]

• In January 1972 Nixon created, again by decree, the Office for Drug Abuse Law Enforcement (ODALE) to flush out pushers in thirty‑eight cities. Simultaneously, New York's police narcotics squad was reorganized following revelations of blatant corruption. ODALE ceased to exist on 1 July 1973 when it, the BNDD and the narcotics intelligence branches of the Justice Department and Customs Bureau were merged to become the Drug Enforcement Administration (DEA), which now operates in the U.S. and worldwide.

• On 17 July 1972 James McCord, Frank Sturgis, Bernard Barker, Eugenio Rolando Martinez, and Virgilio Gonzalez, led by Hunt and Liddy, broke into the Democrats' Watergate offices in Washington. Of these seven men, four were from Miami, four were active or former agents of the CIA, four had been involved in the Bay of Pigs invasion, and three were closely linked to the Cuban narcotics Mafia.

• The same day Nixon telegrammed Pompidou his congratulations. Two days earlier, France had closed out a series of raids against the Marseilles heroin labs. The great heroin coup was well on its way to completion.

• On 9 August 1972 Nixon made William C. Sullivan the director of the Office of National Narcotics Intelligence (ONNI), which would coordinate domestic drug intelligence. Sullivan had been the president's choice to head the Huston Plan's aborted super‑intelligence agency.[17]

With Egil Krogh executive director of the Cabinet Committee on International Narcotics Control, covering foreign narcotics intelligence,[18] complete control over narcotics management was in the president's hands.

• In August 1972 U.S. troops were withdrawn from South Vietnam. The country was turned over to the CIA and a narcotics trafficking South Vietnamese government.

• In late August, in the midst of Nixon's reelection campaign, the BNDD announced the first noticeable heroin shortage on the streets of America. Nixon's battle with the French Mafia had borne fruit. Soon he would rid the U.S.A. entirely of the White Death. However, someone had forgotten to mention that returning GIs had helped triple the U.S. addict population from the 1969 figure of 250,000. In reality, then, the total heroin supply was appreciably greater than that prevailing prior to Nixon's campaign against the French. Americans, however, would reelect Nixon, who cited apparent gains in foreign affairs and the struggle against the drug plague.

• On 12 August 1972 New York crime families decided at a Staten Island summit to resume the drug traffic they had supposedly abandoned in the fifties.[19] Citing "social responsibility," they decried the Cuban and Black Mafias' sale of heroin in the suburbs to children of "decent people," and vowed that the drugs would thereafter remain in the ghetto. But the importance of the families had waned. Others, especially Trafficante's Cuban organization, had become too strong.

The heroin coup was complete by 1973. 

Bush remained at the United Nations until January 18, 1973. The next day he replaced Bob Dole as Chairman of the Republican National Committee, where he stayed until September 16, 1974, the month after Nixon resigned. The new President Gerald Ford, then named Bush Chief of the Liaison Office to China, and in October 1974, the Bushes traveled to Peking, where he served during the critical period when the United States was renewing ties with the People's Republic of China. Four years later this position would be upgraded to an ambassadorship.

While Bush was placed in charge of the RNC, an old spy named David K.E. Bruce was sent to China, prior to the official establishment of diplomatic relations, as head of U.S. Liaison Office in Peking (now Beijing). Bruce held the office from March 15, 1973 until September 25, 1974 and was replaced by Bush, who remained until Christmas 1975. In 1976, Bush was appointed Director of the Central Intelligence Agency.

From 1985 until 1989, the man named Ambassador to China, Winston Lord, was, like Bush, a member of  Yale secret society, Skull and Bones. Lord had been on the planning staff of Nixon's National Security Council, served as National Security Adviser Henry Kissinger's special assistant who accompanied him on his secret trip to China in 1971. He not only went with Nixon to China the following year, but he engaged in talks with the Chinese leader in which the Secretary of State himself was not involved.

Bush's predecessor in China, David K.E. Bruce, had married Ailsa Mellon Bruce, daughter of former Secretary of the Treasury Andrew Mellon. Mellon had been in Woodrow Wilson's cabinet at the same time the Dulles' uncle Robert Lansing was Secretary of State. Ailsa's cousin, Margaret Mellon, had married Tommy Hitchcock, a polo-playing investment banker who on the same polo team with Averell Harriman, Prescott Bush's senior partner at Brown Brothers Harriman. Their son, Billy Mellon Hitchcock, was a friend of LSD guru Timothy Leary, and during the same time that the heroin coup was in the works, Billy was caught up in a scandal involving the CIA-tested hallucinogen, LSD. In 2002 I wrote a series called "Follow the Yellow Brick Road," about the collapse of Enron, in which the following paragraph appeared:

The Mellon family had close ties with the O.S.S.  London station chief David K.E. Bruce was married to Andrew Mellon’s daughter. Also, the Mellon uncles were social friends of CIA director Richard Helms during the late 60s and early 70s. Bobby Lehman, who gave Billy Mellon Hitchcock a job at Lehman Brothers in 1961 also had participated with W.A. Harriman and Co. in aviation issues (Lehman, Billy's father Tommy Hitchcock and Averell Harriman were on the same polo team). Lehman Brothers also financed David Sarnoff’s Radio Corporation of America, which served as Sir William “Intrepid” Stephenson’s headquarters in New York until the O.S.S. was established. Like Drexel & Co., Lehman Brothers would also be bought out by European old-money families. It first merged with Kuhn Loeb and later with the company formed by the merger between Shearson Hayden Stone and Loeb Rhoades--forming Shearson Lehman American Express, which in 1992 was controlled by Edmund Safra and Carl Lindner (each with about 4%). This leads us to wonder who Lindner was fronting for. Could it have been the same old-world aristocrats, heavily involved in the global drug trade?...

[Paul] Helliwell also set up the Castle Bank in the Bahamas to launder money flowing from the sale of drugs from Burma and Thailand used to finance [Claire] Chennault's airline. Castle Bank would eventually be connected to Billy Mellon Hitchcock's profits from selling LSD to California college students....In 1967 Hitchcock left his job at Lehman Brothers to become a partner in Delafield and Delafield, based on the institutional account he brought in from IOS. It was the Delafield bank which handled the stock for the conversion of Mary Carter Paint to Resorts International. In 1969 Hitchcock left Delafield. By then he was living in Sausalito, California and already enmeshed in operations to spread the use of LSD among the youth of California. To learn more about Billy Mellon Hitchcock's role in bringing LSD to America, see Chapter 2 of Acid Dreams, The Complete Social History of LSD: The CIA, the Sixties, and Beyond, New York: Grove Weidenfeld. ©1985 by Lee & Shlain at http://www.druglibrary.org/schaffer/lsd/dreams2.htm.

The French were out, and new labs, routes, and buyer networks were in place, with Southeast Asia the main supplier. That year the U.S. heroin supply did fall noticeably, largely because part of the plan was about to fall through. South Vietnam, Laos, and Cambodia were slipping out of U.S. hands, Forcing traffickers and bankrollers to regroup in safer surroundings, above all in Thailand. [20]

A final item of interest in 1973 was the appearance before a Senate committee of the international speculator and smuggler Frank Peroff, who had served as an undercover agent for the DEA against the Cotroni brothers of Montreal. He testified that the renegade international businessman, Robert Vesco — a major supporter of Richard Nixon — and his associate Norman Leblanc, were bankrollers of international heroin trafficking.[21]

pps. 121-128

Notes

1. B. Herbert: "The Fleetwood Kids," Penthouse, August 1978.

2. L. Gonzalez‑Mata: Cygne (Grasset, 1976).

3. Interestingly, CIA agent Fernand Legros arrived that year in Paraguay and negotiated a weapons deal with the regime of dictator Stroessner; see R. Peyrefitte: La Vie Extraordinaire de Fernand Legros (Albin Michel, 1976).

4. A. McCoy: The Politics of Heroin in Southeast Asia (Harper and Row, 1972). Prior to the publication of this book on 20 August 1972, Cord Meyer, Jr., a CIA covert operations division leader, visited Harper and Row to demand the galleys. The publisher refused, subject to receipt of an official CIA request. When that came, the proofs were delivered over McCoy's objections. The agency returned them with corrections, but the publisher rejected them, and the book was published unaltered.

5. F. Wulff in the Danish Rapport, 14 April 1975.

6. C. Lamour and M.R. Lamberti: Les Grandes Maneuvres de l'0pium

(Editions de Seuil, 1972).

7. McCoy, op. cit.

8. E.J. Epstein: Agency of Fear (Putnam, 1977).

9. E.H. Hunt: Undercover (Berkeley‑Putnam, 1974).

10. Documents of the 5th WACL and 17th APACL Conference, Taiwan, November 1971.

11. N.A. C.L.A. Report, October 1972.

12. P.D. Scott: "From Dallas to Watergate," Ramparts, November 1973.

13. McCoy, op. cit.

14. The Committee of Concerned Asian Scholars: The Opium Rail (New

England Free Press, 1971).

15. P.D. Scott: The War Conspiracy (Bobbs‑Merrill, 1972).

16. McCoy, op. cit.

17. S. Blumental: "How the FBI Tried to Destroy the Black Panthers," in

Government by Gunplay, S. Blumental and H. Yazijian, Eds. (New American

Library, 1976).

18. P.D. Scott: "From Dallas to Watergate," op. cit.

19. The Newsday Staff: The Heroin Rail (Souvenir Press, 1974).

20. The heroin entrepreneurs had also been unduly optimistic about their

supply. By the start of 1973 they began investing in a new, European market,

while still supplying the U.S. Nonetheless, the slight hitch in Southeast Asia

was rapidly dealt with, and soon the flood of heroin hit Europe like a tidal

wave.

21. L.H. Whittemore: Peroff (Ballantine Books, 1975).

See Chapter 14 here.