Cloak and Dagger

Ferdinand Marcos: Iron Butterfly

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Ferdinand Marcos
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Ferdinand Marcos

Cloak and Dagger


WHETHER FERDINAND FIRST APPROACHED the CIA about Yamashita’s Gold, or the CIA approached him, isn’t necessary, for he were concerned with the Company intermittently for the reason that early Fifties. The place the gold was once involved, the gang he handled was once a veritable Who’s Who of American clandestine operations. Amongst them had been one of the vital identical males fleetingly uncovered within the Iran-Contra scandal — a quasi-private army intelligence cellular calling itself “The Undertaking” and engaged in international intrigues for the White Area involving large black-bag payoffs. Marcos and Ver themselves had been implicated within the Iran-Contra scandal for offering the false end-user certificate that allowed the name of the game crew to divert hands anywhere it wanted.

Masses of hundreds of thousands of greenbacks had been concerned within the Iran-Contra hands offers, with collusion a few of the United States, Israel, the Philippines, and different nations, together with all of the cloak-and-dagger paraphernalia of Swiss numbered accounts, dummy firms, and clandestine ships and planes. However as one in all The Undertaking testified, “That is pipsqueak stuff.”

Studying between the traces of Lieutenant Colonel North’s testimony, it’s transparent that CIA director William Casey was once happy with having an “off the shelf” crew of personal operators funded via unofficial assets. This enabled Casey to keep away from the type of interference from Congress that were blockading the Reagan management’s projects to topple the Sandinista govt in Nicaragua. However Casey’s gambit was once now not fully new. The contributors of The Undertaking had been all larger-than-life characters who had labored in combination for a few years, a primary technology of colourful outdated OSS arms, and a 2nd technology of hard-nosed covert motion varieties who minimize their milk enamel on the Bay of Pigs. A few of their names have since turn into acquainted: John Singlaub, Richard Secord, Ray Cline, Theodore Shackley, Thomas Clines, and others.

However now not round is the person who, in some way, began all of it going: the CIA’s unique in a foreign country paymaster and Mister Black Bag. His identify was once Paul Helliwell.

Helliwell was once The usa’s leader of intelligence in China all through International Conflict II, a part of the similar total operation as Captain (later Rear Admiral) Milton “Mary” Miles, who supported the fascinating yet ruthless Nationalist Chinese language secret police boss, Tai Li, till Tai Li’s dying in a booby-trapped aircraft quickly after the tip of International Conflict II. As China table officer for the OSS, Helliwell changed into the person who managed the pipeline of covert finances for secret operations all the way through East Asia after the struggle. This was once virgin territory. A legal professional via coaching, he advanced a device of dealing with black cash from a mess of assets, lots of them extra-legal, laundering it, and shifting it round in a shell sport via banks he arrange like walnuts for that function, the use of clever dodgers as couriers and fiscal sleight of hand. Incessantly, he ended up with extra money than he started, on account of the best way black finances have of rising when freed of authorized restraints, and due to the violent dying in struggle and revolution of such a lot of of his depositors, leaving their inheritance to be spent because the Company wanted.

Due to the CIA’s phase in rescuing the regime of Generalissimo Chiang in 1949, Helliwell had get right of entry to to its black assets. In 1949 Helliwell and a handful of different CIA brokers salvaged Claire Chennault’s Civil Air Delivery (CAT) and different American and Chinese language airplane from the mainland, and transferred them via send to Taiwan.

He spent the years straight away following Mao’s victory reorganizing the U.S. defensive position round Purple China. With war-surplus Victory ships and Liberty ships, and a few of Chennault’s planes, he arrange Sea Provide Company and Air The usa, the use of the Philippines and Thailand as staging bases for secret operations all the way through Southeast Asia. As a way of harassing Purple China from the rear, and collecting intelligence, Sea Provide ferried materiel to Thailand to beef up the KMT opium armies in Burma and the rebellious Champa tribesmen in jap Tibet. CAT and Air The usa flew those provides from Thailand into the Golden Triangle poppy fields and throughout higher Burma to the Himalayas, and flew provides from the Philippines for the beleaguered French at Dienbienphu.

It was once a dear trade. The KMT and the CIA paid off Normal Phao, the commander of the Thai police, who obligingly transshipped heroin from the opium armies all the way down to Bangkok for export. In addition they paid the KMT’s Normal Li Mi what it took to stay his military of 10000 going, which Li Mi was once now not about to do together with his percentage of the opium proceeds. All this took a large number of gold bullion, yet Helliwell rose to the instance. He and different Company monetary professionals within the box adopted fundamental regulations laid down via the unique CIA director of covert operations, Frank Wisner. First get the wealthy folks for your aspect, together with the wealthy gangsters, then arrange channels for black cash so you’ll supply finances throughout borders to the individuals who want them to get the activity achieved. Kim Philby stated Wisner as soon as instructed him, “It is very important to safe the overt cooperation of folks with conspicuous get right of entry to to wealth in their very own correct.” The cooperation of wealthy folks concealed the switch of black cash.

At the different aspect of the arena in Europe, a program very similar to Helliwell’s was once arrange via a Hungarian-born OSS officer, Nicolas Deak. Ultimately, this matured into the professional cash dealer Deak & Corporate, a shiny company with fifty-nine world places of work. Deak’s products and services had been utilized by the CIA’s Kim Roosevelt to finance the 1953 coup towards Mohammed Mossadeq in Iran, which concerned paying large bribes to undermine Mossadeq in desire of the younger Shah.

On the finish of the Pacific Conflict, many of the cash in Asia was once within the arms of reasonably few folks: those that had controlled to carry onto what that they had earlier than the struggle, and those that had taken good thing about the struggle to assist themselves to the wealth of others. Each teams contributed to Helliwell’s operations for a similar explanation why, dread of communism. Helliwell supported right-wing teams far and wide Asia via drawing at the coffers of the Chiangs, the Korean generals, and the kuromaku of Japan, principal amongst them Kodama.

Part of Kodama’s private wartime hoard of $200 million was once became over to the Counter-Intelligence Corps (CIC) in 1948, as a part of the complicated deal labored out between MacArthur and Chiang for Kodama’s freedom and that of his robust cellmates. The $100 million that the CIC were given, shy of what it needed to break up with the generalissimo (possibly fifty-fifty), changed into seed cash and fertilizer for Helliwell’s cash tree. The CIC used Kodama first to repay pro-American politicians in Japan, Korea, Thailand, and Indonesia. After ten years actually as an worker of G-2, Kodama was once formally put at the CIA payroll in 1958. That very same 12 months, he changed into the Lockheed agent in Japan, receiving $6.3 million in bribes both from Lockheed or from the CIA via Lockheed all through the years from 1966 to 1972. Kodama most popular money, so Lockheed delivered it to him by the use of Deak & Corporate couriers. The Lockheed affair climaxed in 1976 with the arrest of Top Minister Tanaka for bribery, of which he was once later convicted.

The Counter-Intelligence Corps and its successor company, the CIA, naturally by no means printed precisely how they spent the $100 million equipped via Kodama, yet plenty of new anti-Communist organizations quickly got here into life and established cells all the way through the Some distance East. The sort of was once the spiritual cult of the Moonies, based via the South Korean Solar Myung Moon, with assist from the CIA and its South Korean stepchild, the KCIA. Every other was once the Asian Peoples’ Anti-Communist League (APACL), based via South Korea’s Svngman Rhee, Taiwan’s Chiang Kai-shek, and the CIA. Kodama’s outdated good friend Sasakawa Ryiochi changed into the champion of the Moonies in Japan, and one of the most high movers in the back of the Jap department of APACL. In 1970, Sasakawa arranged the International Anti-Communist League because the successor to APACL. In line with one model, the Reverend Moon and Sasakawa jawboned with distinguished Jap rightists at one in all Sasakawa’s speedboat racing classes on the foot of Mount Fuji and laid their plans to unfold the League international. Right through its early years, WACL was once broadly reported to had been financed in large part from Sasakawa’s large fortune.

Amongst different covert operations, Helliwell’s black-money channels had been used to underwrite Lansdale’s anti-Huk marketing campaign within the Philippines, the election of President Magsaysay, and next Filipino political contests. From the Philippines, it was once used to pay the Indonesians preventing Sukarno. When The usa changed into entangled in Vietnam, Helliwell’s monetary magic was once used to stay the Saigon generals glad and to arrange in a foreign country accounts for Laotian princelings and druglords.

Clamorous as they had been in cloak-and-dagger phrases, the CIA operations in Tibet, Burma, and Indonesia had been army screw ups and intelligence screw ups as properly, even supposing most of the technical folks — pilots and person brokers — carried out heroic feats below hazardous stipulations. They failed now not for need of bold and ingenuity within the box, yet on account of unhealthy judgment, questionable motives, and evasion of duty at coverage ranges in Washington. Some of the KMT opium generals, Normal Lee, instructed me that his troops were given the sort of unhealthy reception from villagers at the Chinese language aspect of the border that they stopped making forays, and thereafter equipped the CIA with intelligence that was once invented to fit the instance.

Helliwell’s monetary strategies, then again, had been observed as a perfect good fortune, with software international. What may just now not be accomplished via killing folks incessantly might be achieved via purchasing allies and paying off enemies, one thing Asians and Europeans had discovered to do centuries previous. In 1960 — following Castro’s victory in Cuba the former 12 months — CIA covert operations director Richard Bissell introduced Helliwell again from the Some distance East to arrange a Western Hemisphere model of Sea Provide and Air The usa out of Miami known as Southern Air Delivery, and a brand new chain of black-money banks to pay for the Bay of Pigs operation that Bissell was once making plans.

Amongst Helliwell’s creations had been Fortress Financial institution and Mercantile Financial institution & Agree with within the Bahamas. One in every of his buddies was once Wallace Groves, who was once concerned with Ferdinand within the Benguet mines. Like Kodama, Groves was once taken on as a CIA adviser.

Helliwell thereby changed into the paymaster for the Bay of Pigs. He didn’t scrap his Asian networks, he simply prolonged them around the globe, his string of banks ultimately stretching from Florida and the Bahamas to the Caymans, the Netherlands Antilles, Panama, Honolulu, Hong Kong, Manila, Bangkok, Singapore, Sydney, Beirut, and Teheran. No person will ever understand how a lot flight capital flowed during the murky streams between those banks. One after the other, the banks collapsed in scandal, lasting simplest so long as they had been wanted, to get replaced elsewhere via their clones. The sort of clones was once the Nugan-Hand Financial institution, which changed into a pipeline for the Marcos gold offers.


Running for Paul Helliwell in China close to the tip of the Pacific Conflict had been two younger intelligence officials, Ray Cline and John Singlaub, one an excellent analyst, the opposite a paramilitary skilled.

Singlaub was once a sound American hero. As a tender OSS agent, he parachuted in the back of German traces in France in 1944 to assist the Resistance get ready for D-Day. In line with legend, all through the liberation of Singapore it was once Singlaub who parachuted in to unencumber the gates of Changi Jail. Close to the tip of the struggle, he was once dropped into China to coach KMT guerrillas, within the procedure growing an rigid anti-Communist bond with the Chiang regime. When the Jap surrendered, he was once appointed leader of the U.S. army undertaking in Mukden, Manchuria, making an attempt from there to steer the result of the Chinese language civil struggle. With Mao’s victory, Singlaub succeeded Paul Helliwell as China table officer for the CIA. As a paramilitary skilled, he helped prepare the Ranger Coaching Heart at Citadel Benning, Georgia, to organize military commandos for CIA missions, and directed most of the agent drops in China, maximum of whom vanished and not using a hint. Right through the Korean Conflict he changed into CIA deputy leader in South Korea, emerging to the rank of total.

Understandably, Singlaub the centurion got here to be looked with awe via a complete technology of American army males and intelligence officials, lots of whom shared his conservative perspectives about the best way issues will have to be in Asia. Round him grew a following that evolved into an infrastructure on the Pentagon and CIA.

When Singlaub took over the China table from Paul Helliwell, one in all his most sensible brokers was once Ray Cline. After the Chiang regime fled to Taiwan, Cline changed into a key operative in Taipei on account of his shut friendship with the generalissimo’s son and inheritor, Chiang Ching-kuo (“CCK”). They engaged in heroic all-night ingesting bouts that changed into a legend within the Company. Cline additionally was once the conduit in which CIA finances flowed to arrange the Asian Other folks’s Anti-Communist League (APACL) in Taiwan and South Korea in 1955-56, which quickly had its personal brokers working all the way through the Some distance East. Some of the leader fundraisers for Cline’s advent was once Kodama’s fellow kuromaku Sasakawa. At Sasakawa’s initiative, the APACL ultimately changed into the International Anti-Communist League, and was once headed for a few years via Chiang Kai-shek’s henchman, Ku Cheng-kang.

Cline’s ingesting pal, the generalissimo’s son, rose to be safety leader, protection minister, and in the long run president of Taiwan. From 1958 to 1962, Cline served as CIA station leader in Taipei, and had atypical affect. Cline and CCK labored in harness to hold out black operations all the way through Asia, together with the fight to dominate the in a foreign country Chinese language communities within the Philippines and Indonesia. In combination they arrange the Political Battle Cadres Academy in Peitou, out of doors Taipei. An exceptionally suave and clever guy, Cline went again to Washington on the finish of 1962 to turn into the CIA’s deputy director for intelligence international. On this place he endured to paintings carefully with Paul Helliwell, John Singlaub, and CCK, and would had been stored properly knowledgeable on Marcos gold offers via brokers in Manila, since those offers had been an merchandise of significant pastime.


The verdict of President Eisenhower to start out making plans an invasion of Cuba, and to discover choices for assassinating Fidel Castro, led the CIA to strike a discount with Mafia don Santo Trafficante, whose casinos and brothels in Havana were closed down via Castro, and anti-Castro operations changed into a three way partnership with the Mafia. The Kennedys intensified the trouble, bringing new gamers into the vanguard of the CIA’s covert motion workforce. Two of this new technology had been Theodore Shackley and Thomas Clines. For the following 3 many years, Clines and Shackley moved backward and forward from Asia to the Caribbean leaving of their trail all approach of invasions, army coups, political assassinations, and what one member of The Undertaking boasted had been “the most important black-bag operations of all time.”

Shackley and Clines had been amongst the ones given the activity of organizing the Bay of Pigs invasion. Its embarrassing failure charge Allen Dulles his activity as head of the CIA and Richard Bissell his as director of covert operations. However Shackley and Clines had been moved directly to the following pressing activity to hand: serving to to prepare the assassination of Fidel Castro, his brother Raul, Che Guevara, and others in Operation Mongoose.

It was once the verdict of the Kennedy brothers to convey Normal Edward Lansdale again from Manila and Saigon to plot Operation Mongoose. They, like such a lot of others, had allowed themselves to be satisfied that Lansdale’s Huk marketing campaign and the election of Magsaysay were an unqualified good fortune. It took many months for the belief to sink in that Lansdale lived in a covert model of Disneyland. This changed into obvious throughout the Company when phrase unfold that the overall was once making plans a triumphal victory parade via Havana: it might be completed via having a submarine floor one evening off the Malecon to fireside famous person shells into the sky, which Catholic Cubans would take to be the 2d Coming.

On assuming the presidency, Lyndon Johnson became his consideration clear of Cuba to Vietnam, and Shackley and Clines had been despatched off to use their ordinary forte in Indochina. Operation Mongoose was once was Operation Phoenix, a per month bounty hunt to smash The usa’s enemies on the village stage via assassinating them. Phoenix resulted within the killing (incessantly with silenced pistols in the course of the evening) of greater than twenty thousand Vietnamese, some stated fifty thousand — most commonly civilians — achieving an estimated general of seventy-five thousand folks all the way through Indochina, together with girls and kids. The full coordination of Phoenix was once attributed to William Colby, yet Normal John Singlaub ran the leading edge in Vietnam (known as SOG, or Particular Operations Crew), whilst Shackley and Clines ran the parallel program in Laos. The executive of secret air operations all the way through was once Normal Heinie Aderholt, an amiable, immensely likeable technical wizard and outdated OSS hand who previous had run air operations in Indonesia and Tibet for Paul Helliwell. His deputy air wing commander for Singlaub’s SOG was once air drive Lieutenant Colonel Richard Secord. It was once on this method that most of the key components of The Undertaking first got here in combination.

Whilst Operation Phoenix did not have any decisive impact at the result of the Indochina Conflict, substantial good fortune was once being accomplished just by purchasing the loyalty of army officials and politicians. Businessmen, drug traders, and statesmen like Ferdinand Marcos gladly cooperated with the CIA in go back for assist in shifting their hidden finances to in a foreign country banks, the place the Company felt unfastened to dip into them to succeed in its personal ends.

As a result of purchasing was once demonstrably simpler than killing, Paul Helliwell’s black-money community bore down and gave delivery to Nugan-Hand, with its head workplace in Sydney and branches in Manila, Hong Kong, Bangkok, Singapore, Honolulu, and Washington, D.C. One in every of Nugan-Hand’s covert buddies described the financial institution as a comfort equipped “for folks out of Southeast Asia all through the Vietnam Conflict … they wanted to shop for belongings and so they wanted to shop for gold and so they had to put their cash on deposit and so they couldn’t have it up in Thailand or Laos or Cambodia or Vietnam …” (Or caught in financial institution vaults within the Philippines.)

Sprinkled via Nugan-Hand had been plenty of Ray Cline’s and John Singlaub’s closest buddies within the army intelligence group: In Washington, Walter McDonald, the CIA’s deputy director for financial analysis, organized for former CIA director William Colby to turn into authorized recommend to Nugan-Hand. The Honolulu workplace was once headed via retired Normal Edwin F. Black, for a few years a most sensible aide of CIA director Allen Dulles, a member of the NSC workforce, and leader of the U.S. army in Thailand all through the Vietnam Conflict. The Washington department was once headed via retired Rear Admiral Earl P. Yates, former chief-of-staff for plans and coverage of the U.S. Pacific Command, answerable for all strategic making plans so far as the Arabian Gulf. The Manila department was once headed via Normal Leroy Manor, former particular assistant to the Joint Chiefs of Workforce for counterinsurgency and covert operations, who was once stated to have retired from energetic obligation to adopt secret missions, together with negotiating the 1979 army base condominium settlement within the Philippines. Manor spent seven months negotiating the bottom settlement, concluding with the fee to Ferdinand of $500 million. The overall then straight away accredited the publish as head of the Manila department of Nugan-Hand.

A number of the questions raised is whether or not it was once fully correct for Normal Manor, as leader negotiator of the $500 million base settlement, to move a financial institution doing trade with President Marcos and his circle of relatives — and within the procedure settle for supply of a duty-free Ferrari. What this printed about Manor’s personal judgment is much less necessary than what it printed about Washington’s involvement with Ferdinand. The Pentagon stated Manor had retired from energetic obligation to adopt assignments too secret to speak about, together with “particular liaison” with President Marcos; Nugan-Hand’s trade in Manila was once reported to incorporate secret CIA airlifts of lots of black gold. Did “particular liaison” imply shepherding Yamashita’s Gold out during the Company’s black-money channels? Manor instructed a journalist that he was once despatched out to run the Manila workplace “to be informed” — despatched out via whom, to be informed what?


Via the Seventies, this difficult core of the CIA’s covert motion workforce was once obtaining positions of outstanding leverage. In 1966, Ray Cline had left his publish because the CIA’s deputy director of intelligence after repeated clashes with the brand new CIA director, Admiral Raborn. Cline made a lateral transfer, changing into station leader in Frankfurt, West Germany, then landed on his toes when he returned to Washington to take over the State Division’s Bureau of Intelligence and Analysis. On this place, he was once in a significantly better slot to steer international coverage.

Normal John Singlaub changed into a deputy assistant secretary of protection from 1971 to 1973, then commander-in-chief of all U.S. forces in South Korea.

Shackley and Clines changed into station leader and deputy respectively in Saigon all through the bone-crushing length 1968-72, then directed Operation Phoenix from CIA headquarters in Virginia from 1973 to 1975. As Saigon station leader, Shackley was once a number one device for Henry Kissinger’s grim projects all the way through Indochina. The interruption in his tenure at Saigon in 1972 got here when he and Clines had been introduced again lengthy sufficient to mastermind the violent overthrow of Chile’s popularly elected Marxist president, Salvador Allende, all through which Allende was once murdered. By the point Watergate got rid of Nixon from the Oval Place of job, Shackley was once the CIA’s deputy director for operations, answerable for covert motion international.

The autumn of Saigon shifted the focal point of covert motion to different capitals. Richard Secord went to Iran, the place he commanded the U.S. army undertaking. In Washington, Shackley and Clines changed into as alarmed via the upward thrust of Gough Whitlam and the Exertions celebration in Australia as that they had been via the election of Salvador Allende in Chile. It isn’t peculiar for CIA box officials to turn into overinvolved in native passions, however the Company’s senior executives are anticipated to stay aloof, serving simplest as tools of the president. The Company’s worst setbacks had been skilled when its senior executives changed into obsessive about explicit missions, as when Bissell changed into relentless in his dedication to the Bay of Pigs invasion. Shackley now confirmed equivalent indicators. Males who labored with him stated he was once “paranoid” about Whitlam and his Exertions celebration, taking into account it to be below the regulate or affect of Communists.

For a while, the CIA were operating a number of covert operations in Australia, involving Nugan-Hand and bizarre comings and goings on the large U.S. technical intelligence base known as Pine Hole, close to Alice Springs within the Outback. Many of those intrigues had been carried on with the figuring out collaboration of the Australian Safety Intelligence Group, ASIO, headed via Brigadier Sir Charles Spry, who had shut private ties to the CIA going again to Allen Dulles and the OSS. Colonel Secord, who had turn into Singlaub and Shackley’s number one air operations guy in Indochina, was once recognized with those Australian operations all through the Vietnam Conflict, and it sounds as if endured to function a hyperlink afterwards for the motion of black cash and guns from the Philippines and Australia to Iran.

When he testified earlier than Congress all through the Iran-Contra hearings, it was once Secord who stated: “That is pipsqueak stuff. When I used to be in Southeast Asia, we used to pay our folks in money and gold bullion. I’ve been fascinated by one of the vital greatest black-bag operations of all time.”

Via shifting Ferdinand’s illicit gold out via Nugan-Hand, the Company would have the ability to do monetary favors for its rich pals in Australia, permitting them to accumulate fats commissions in offshore accounts or to offer them briefly with the spot financing they could want to make a leveraged antagonistic takeover. The ones favors may just then be known as in each time the Company wanted.

Most of the CIA’s Australian projects had been directed at preserving the Exertions celebration out of workplace. When, in spite of them, Whitlam changed into Australia’s new high minister, he started doing what any new leader of state would, shifting to convey Canberra’s intelligence carrier below his personal regulate. As time handed Whitlam discovered alarming indications that the ASIO may in truth be conspiring with the CIA to convey his govt down, together with leaking data designed to embarrass contributors of his cupboard to be able to drive their resignation. Whitlam started sacking folks at ASIO that he felt had been accountable, together with one of the vital CIA’s easiest pals Down Beneath.

From Washington, Shackley counterattacked. He knowledgeable the ASIO’s Sir Charles Spry that what Whitlam was once doing was once inflicting the CIA “grave worry,” and until one thing was once achieved urgently the Company must destroy off its “mutually recommended relationships” with the ASIO. It seems that Shackley additionally appealed to MI6 in London to do one thing urgently. 3 days later the Australian governor-general, a in large part ceremonial publish appointed via the queen, exercised an difficult to understand level of legislation that had by no means earlier than observed the sunshine of day and got rid of Whitlam from workplace. Since then, there were questions raised within the Area of Commons about whether or not MI6 may had been accountable.

The downfall of Gough Whitlam endeared the CIA to an entire technology of Australian tycoons horrified via what the British Labour celebration had achieved to their opposite numbers in England, and who felt that their very own liberties had been jeopardized via Whitlam’s upward push. Because of this on my own, the Company loved unparalleled freedom to perform in and thru Australia from 1975 to 1982.

Nugan-Hand with headquarters in Sydney changed into a black hollow for warm cash from far and wide Asia. Right through the autumn of Saigon, a member of the name of the game crew instructed me, “On separate events, I used to be presented 1,000,000 bucks in money via person businessmen, most commonly Chinese language, to fly them and their households out to the Philippines or Central The usa. One affiliation of Chinese language businessmen presented me $100 million (one million according to head) to get all of them out immediately to Costa Rica. I’m sorry I didn’t do it. I may have achieved it simply, yet I simply didn’t have any time. They should have long past in other places.”

For the following decade Iran equipped an invaluable laundering facility and alternatives for this kind of hands offers that secret brokers love to engineer at the aspect. Those incorporated the resale of guns stockpiles left over in Thailand. So whilst Marcos gold and Chinese language flight capital moved via Australia to Teheran and Beirut, one of the vital proceeds helped grease the best way for brand new trade preparations. Nugan-Hand served as an middleman within the sale of a minimum of one undercover agent send to the Shah of Iran. In Teheran Richard Secord was once the executive Pentagon consultant in those offers. The whole thing was once bought — from jet opponents and radar-transparent patrol boats (manufactured from carbon fiber and unique plastics) to espionage apparatus, AWACS undercover agent planes, and missile methods. Clines established an organization known as the Egyptian-American Delivery and Services and products Company (EATSCO), and started searching for different shops for guns.

Ferdinand’s position in lots of of those CIA guns offers was once to offer false end-user certificate to be able to masks the actual vacation spot. The process was once easy. As the arena’s biggest guns broker, when The usa bought armaments to every other nation, Congress required promises that the guns would now not be resold to a 3rd nation with out authorization. This ensure was once equipped within the type of certificate that specified precisely to whom the guns had been going. The certificate needed to be licensed in my opinion via the State Division and the Pentagon. Fabian Ver, as leader of workforce of the Philippine militia, signed end-user certificate mentioning, for instance, that the guns had been being resold via Israel to the Philippines. That was once sufficient to meet Congress and the Pentagon, who knew that anything else involving the Philippines could be hopeless to track. As an alternative, the guns would cross to nations that had been blacklisted.

For causes of their very own, contributors of the name of the game crew had been appearing expanding indicators of working independently of the CIA status quo. A few of this was once inevitable, because of the multiplication of CIA proprietaries, bogus banks, and laundering operations.

That got here to an abrupt halt when Jimmy Carter changed into president, determined to scrub area, and straight away ran head-on into this right-wing cabal.


One in every of Carter’s cost-cutting strikes was once a choice to cut back the dimensions of American forces in South Korea. This was once an unpardonable error of judgment from the perspective of Normal Singlaub, who had spent the simpler a part of his existence build up the Korean generals as a cast rock of anti-communism within the Some distance East, a praetorian guard. As chief-of-staff of the United Countries command in Seoul, Singlaub publicly denounced the verdict of his commander-in-chief. President Carter straight away fired him, and Singlaub was once pressured to surrender from the military.

Carter additionally had his new CIA director, Admiral Stansfield Turner, sack Shackley and Clines. EATSCO, the hands dealer arrange via Thomas Clines, later pleaded accountable to defrauding the U.S. govt of a few $8 million via overbilling shoppers. Richard Secord, who had risen to primary total and deputy assistant secretary of protection for Africa, the Heart East and Central Asia, ultimately was once embarrassed via the disclosures of the EATSCO affair, and retired from the air drive after being accused via the Justice Division of illegally the use of his Pentagon publish to intercede for Clines’s corporate.

So as to add to their woes, the overthrow of the Shah canceled Iran as a spot of remuneration for covert CIA brokers. As a part of his marketing campaign for human rights, Carter additionally invoked the Harkin Modification to bring to an end U.S. army assist to dictator Anastasio Somoza, which put a kink within the CIA hose resulting in Central The usa.

Whilst the Shah was once nonetheless in persistent, Nugan-Hand was once stated to have laundered “billions” for him. After his expulsion, the financial institution got to work shifting the Shah’s property to more secure puts. Quickly in a while, Frank Nugan’s frame was once discovered out of doors Sydney slumped in the back of the wheel of his Mercedes, a bullet hollow in his head and a rifle beside him. His spouse Michael Hand (lengthy recognized with the CIA) vanished off the face of the earth. Nugan-Hand Financial institution collapsed in scandal, and all its generals and admirals sought employment in other places.

For a second it appeared as although the warlocks were put to flight. However that they had simplest been pushed underground. In a chain of surprising reversals, President Carter was once embarrassed via a parade of misfortunes, together with the humiliating failure of his try to rescue American hostages in Iran — an army fiasco that gave the impression to had been produced via Mack Sennett, directed via Harold Lloyd, and performed via the Keystone Law enforcement officials.

That there was once a scientific marketing campaign to unhorse President Carter hasn’t ever been doubtful, even supposing its dimensions stay unmeasured. Ferdinand Marcos should had been happy with Carter’s defeat and the election of Ronald Reagan, as it introduced on a brand new technology of U.S.-Philippine family members.

After Reagan’s election and the appointment of his good friend William Casey as the brand new director of the CIA, the outdated secret crew of Singlaub, Shackley, and the others was once reorganized right into a privately funded, apparently random workforce of civilian consultancies, yet with interlocking club. The Undertaking changed into a shadow CIA, modeled on England’s Particular Operations Govt in International Conflict II, an elite workforce that was once the depression of the common Secret Intelligence Carrier. When an initiative may just now not be undertaken via Casey’s CIA for causes of political sensitivity, the personal specialists had been introduced in.

Secord described how this took place: “Some of the issues of the CIA is they don’t have skilled folks operating the display. You’ve got shoe clerks operating the railroad. The Carter Management eviscerated the CIA; it was once simply wrecked, and the Clandestine department, which was once very small, was once completed. I believe Casey was once looking to do a just right activity, yet he was once too outdated to in reality be efficient.” Secord and The Undertaking stepped into the breach.


As a civilian, John Singlaub changed into extra energetic than ever in right-wing reasons and anti-Communist actions. Beneath Reagan he regained the affect he had misplaced below Carter. He served as chairman of the International Anti-Communist League, and headed its American bankruptcy, the Council for International Freedom. In 1981 he attended a WACL assembly in Taipei, the place he was once reported to had been given just about $20,000 via Ray Cline’s outdated good friend, President Chiang Ching-kuo, to arrange the American bankruptcy. Lieutenant Normal Daniel O. Graham, the previous director of the Protection Intelligence Company, changed into its vice-chairman.

The League’s rosters incorporated U.S. congressmen and senators, British Participants of Parliament, Nazi collaborators, infamous terrorists, dying squad leaders from Latin The usa, varied right-wing strongmen, and underworld figures. Amongst its Asian sponsors had been the Chiangs, Park Chung Hee, Sasakawa Ryiochi, Kodama Yoshio, and the Reverend Moon. Right through his two decades of dictatorship, President Marcos ceaselessly attended WACL annual conferences, as did Ray Cline, John Singlaub, Kodama, and Sasakawa.

Beneath force from the Reagan White Area in 1982, Singlaub’s U.S. bankruptcy of the League was once granted tax-exempt standing via the IRS. Ronald Reagan himself ceaselessly despatched messages to WACL meetings, saying that “Our mixed efforts are shifting the tide of historical past towards global freedom.”

Most of the organizations lobbying for conservative reasons in Washington, such because the Conservative Caucus, had interlocking directorships with WACL. Tracing the interlocks may just result in fascinating discoveries. As an example, Western Targets, established to stay monitor of subversives in The usa, was once headed via Singlaub’s good friend Congressman Larry McDonald, whose monetary backers incorporated Nelson Bunker Hunt, who had attempted to nook the silver marketplace. McDonald was once additionally head of the John Birch Society when Bob Curtis stated it had presented to launder over $20 billion in Yamashita’s Gold. It can be simplest twist of fate that the most important company in McDonald’s constituency in Georgia was once Lockheed, which had paid hundreds of thousands to Jap officers via Kodama, the person maximum chargeable for collecting Yamashita’s Gold and hiding it within the Philippines. Congressman McDonald was once one of the most passengers aboard Korean Air Traces flight 007 shot down when it intruded into Soviet airspace in 1983.

Singlaub exerted direct private affect throughout the Nationwide Safety Council during the army workforce of generals and colonels within the Govt Place of job Construction. When he was once now not in Washington his touch with the NSC was once performed for him via the Washington-based conservative lobbyist, Andrew Messing. Singlaub’s get right of entry to to the NSC got here partially via his shut friendship with Primary Normal Robert L. Schweitzer, previously with the Pentagon’s Technique, Plans and Coverage Place of job, and thru Normal John W. Vessey, chairman of the Joint Chiefs of Workforce. Schweitzer additionally was once chairman of the Inter-American Protection Board, chargeable for Nicaragua, El Salvador, and Honduras. In 1986, simply because the Iran-Contra scandal was once breaking, Schweitzer retired and joined Singlaub and The Undertaking within the civilian global, taking a publish as adviser with Singlaub in a Washington consulting company known as GeoMiliTech Company. In a similar fashion, when Ted Shackley had retired below force from the CIA, he had joined a consulting company in Houston began via Thomas Clines.

In those new positions, they changed into particularly helpful to President Reagan when Congress handed the Boland Modification, ordering the White Area and the CIA to stop paying the Contras to overthrow Nicaragua’s Sandinista govt. To get across the Boland Modification, the NSC’s Lieutenant Colonel North struck a handle the CIA’s Casey to usher in Secord, Hakim, Shackley, and Clines — and later their buddies Singlaub, Aderholt, and Schweitzer — to run weapons to the Contras privately, as soon as once more turning to Ferdinand Marcos for the false end-user certificate. The entire secret crew community had once more come complete circle, again to Manila.

Via this level Ferdinand were supplying those pretend certificate to the CIA for greater than a decade. This was once no small deceit. Greater than $8 million in guns was once fascinated by a unmarried cargo, totalling $100 million in 1983 on my own. A Filipino hands broker related to Normal Ver won a 5 p.c fee at the proceeds of those gross sales; so, in that 12 months, the broker who was once dealing with simply the bureaucracy in Manila made $5 million. This is a tribute to the ingenuity of Fabian Ver that he was once now not content material simply to signal the certificate. He went one step additional and billed his personal military for the price of the shipments, then pocketed the cash. Paperwork display that Ver, in collaboration with Israeli generals and U.S. businessmen, charged the Philippine militia loads of hundreds of thousands of greenbacks for armaments that by no means arrived.[5]

In November 1984, Ted Shackley was once stated to had been contacted via former contributors of the Shah’s SAVAK now operating for the Ayatollah Khomeini, and knowledgeable that President Reagan may just regain Iran via supporting moderates within the regime with secret hands shipments. The important thing figures on this newest intrigue became out to be Iranian hands service provider Manucher Ghorbanifar and the CIA’s outdated good friend Adnan Khashoggi, Ferdinand’s good friend and Imelda’s disco spouse, fellow Lockheed agent and trade affiliate of Kodama. On this approach, they instructed that Reagan may just ransom American hostages being held via Palestinians subsidized via the Ayatollah. Shackley reportedly handed this recommendation directly to Colonel North, and the Iran aspect of the Iran-Contra conspiracy was once set into movement.

At Colonel North’s urging, The Undertaking engineered each the Iranian and the Contra hands offers via plenty of inner most fronts, purchasing American apparatus affordable, promoting it pricey, and salting the variation in Swiss accounts — $6 million in a single on my own. For his phase, John Singlaub was once requested via North to solicit finances from international nations, and was once believed to have achieved so from South Korea, Taiwan, and the Philippines. Singlaub additionally brokered a $5.3 million hands deal for the Contras, together with hundreds of AK-47 attack rifles, it sounds as if acquired affordable from his outdated adversary the Other folks’s Republic.

When the Iran-Contra mess burst like a boil in 1986, Singlaub and his pals had been already busy in other places, armed with alternatives and shovels, taking on the place Ferdinand Marcos had left off seeking what was once left of Yamashita’s Gold.







Manila Philippines Map 1
Manila Philippines Map
Manila Philippines seal
Manila Philippines seal
Manila Philippines Coat of Arms
Manila Philippines Coat of Fingers
Manila Philippines Flag
Manila Philippines Flag

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Writer: Andrew Russell

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