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CONTENTS OCTOBER 12, 2000

Click. JACKSON STEPHENS - THE MAN (OCTOPUS TENTACLE) BEHIND CLINTON, BUSH, GORE, BCCI.

Click. SHOULD ADMIRAL KIMMEL AND GENERAL SHORT BE EXONERATED?

Click. Chile Expels German Colonia Dignidad Leaders.

Click. VACAVILLE PRISON - CALIFORNIA'S MIND CONTROL JOINT.


CARTER, REAGAN, BUSH, CLINTON AND BCCI

Source: The Progressive Review
Published: 10/11/00 Author: Sam Smith

THE GREATEST FINANCIAL scandal in history -- the BCCI affair -- left American participants virtually untouched. The media covered the scandal poorly even though, according to one investigative journalist, up to a hundred Washington politicians and lawyers might have been criminally liable.

As a result -- much like Clinton and the Dixie Mafia -- Americans have but the vaguest notion of what happened. In fact, the two stories overlap. And like many contemporary sagas of corruption, the two stories reached deep into both the major parties. In fact, if George W. Bush is elected, we will be entering our fifth consecutive presidential administration (two Democratic and three Republican) with direct ties to leading figures in the biggest financial scandal of all time.

This time line suggests some of the interplay of individuals and parties:

1975 National Bank of Georgia president Bert Lance, whom former Georgia Governor Jimmy Carter described as being like a brother and was Carter's chosen but defeated successor, meets with Jackson Stephens, a Naval Academy classmate of Carter. Stephens Inc. arranges public offering of NBG stock. Stephens would later be described by the New York Post as the man who was to "Clinton what Bert Lance was to candidate Jimmy Carter."

1976 Both Stephens and Lance help Carter in his race for the White House. Carter uses the NBG corporate plane without disclosing it. Campaign is later fined.

Two Indonesian billionaires come to Arkansas. Mochtar Riady and Liem Sioe Liong are close to Suharto. Riady is looking for an American bank to buy. Riady's agent is Jackson Stephens.

1977 Lance comes to Washington as director of the Office of Management and Budget. He quickly comes under investigation for his past financial dealings and in September resigns. His lawyer is Clark Clifford, later embroiled in the BCCI case.

1978 Hillary Clinton, the Arkansas governor's wife, is getting considerable business from Stephens Inc.

George W. Bush begins operations of his oil firm, Arbusto Energy. He assembles several dozen investors in a limited partnership including Dorothy Bush (a friend of BCCI figure Robert Altman), Lewis Lehrman, William Draper, and James Bath, a Houston aircraft broker who bought several planes from Air America, a CIA front. Bath's firm appears to be owned by Saudi investors. He also was a part-owner of a Houston's Main Bank, along with a couple of BCCI figures.

Stephens brokers the arrival of BCCI to this country, and steers BCCI's founder, Hassan Abedi to Bert Lance.

Stephens Inc tries to sell Riady stock in the National Bank of Georgia. The Washington Post quotes a US banker suggesting that Riady is working for Suharto, who is trying to butter up Carter: "They think of this country like a 'regime' similar to their own and they just don't realize that such a ploy wouldn't work." There's no deal. Lance's bank will eventually be taken over by a BCCI front man -- Ghaith Pharaon. Pharaon later sells his bank to First American. Pharaon will be fined $37 million by the Federal Reserve Board and become a fugitive.

Abedi moves to secretly take over First American Bankshares -- later the subject of the only BCCI-connected scandal to be prosecuted in the US.

1979 Mochtar Riady and Stephens Inc set up Stephens Finance Ltd. In Hong Kong.

Lance is indicted on charges of violating federal banking laws. Clifford's partner, Robert Altman, represents Lance who eventually achieves a hung jury.

During this same period, Stephens is, according to Peter Truell and Larry Gurwin in "False Profits," playing "a crucial role in BCCI's penetration of the US market."

1984 Mochtar Riady buys a stake in the Worthen holding company whose assets include the Stephens-controlled Worthen Bank. Price: $16 million. Other Worthen co-owners will eventually include BCCI investor Abdullah Taha Bakhish. Deal handled by C. Joseph Giroir II. Giroir is the Rose law firm chair who hired Hillary Clinton. Giroir will continue to be a deal-maker for the Riadys.

1985 Arkansas state pension funds -- deposited in Worthen by Governor Bill Clinton -- suddenly lose 15% of their value because of the failure of high risk, short-term investments and the brokerage firm that bought them. The $52 million loss is covered by a Worthen check written by Jack Stephens in the middle of the night, an insurance policy, and the subsequent purchase over the next few months of 40% of the bank by Mochtar Riady. Clinton and Worthen escape a major scandal. Mochtar's son James comes back to Arkansas to manage Worthen as president.

Worthen is investigated by the Office of the Comptroller of the Currency for improper loans to companies owned by the Riadys and Stephenses.

1986 George W. Bush and partners receive more than $2 million of Harken Energy stock in exchange for a failing oil well operation, which has lost $400,000 in the prior six months. After Bush joins Harken, the largest stock position and a seat on its board is acquired by Harvard Management Company. The Harken board gives Bush $600,000 worth of the company's publicly traded stock, plus a seat on the board plus a consultancy that pays him up to $120,000 a year. When Harken runs short of cash it hooks up with Jackson Stephens, who arranges a $25 million stock purchase by Union Bank of Switzerland. Sheik Abdullah Bakhsh, who joins the board as a part of the deal, is connected to BCCI.

1988 Stephens' wife Mary Ann runs George Bush's campaign in Arkansas. He is a member of Team 100 -- individuals who have given $100,000 to the Republican party.

A few days before the supposedly surprise arrest of five BCCI officials, some of the world's most powerful drug dealers quietly withdraw millions of dollars from the bank. Some government investigators believe the dealers were tipped off by sources within the Bush administration.

1989 Bahrain officials suddenly break off offshore drilling negotiations with Amoco and decide to deal with Harken Energy, George W. Bush's firm. Harken has had a series of failed ventures and no cash, so the Bass brothers are brought in to finance Harken's efforts at a cost of $50 million. Harken's investment banker is the same firm that helped in BCCI's acquisition of First American. Among the other BCCI-connected figures that help the deal: Bahrain's prime minister.

1990 Bush's attorney general, Richard Thornberg, is warned about BCCI but does nothing.

1991 Stephens Inc gives $100,000 to a Bush dinner committee. With Stephens, Mochtar Riady buys BCCI's former Hong Kong subsidiary from its liquidators.

A former top aide to White House Chief of Staff John Sununu goes to work for a prominent figure in the BCCI scandal less than a month after leaving the Bush administration. Edward Rogers Jr. signs a $600,000 contract to give legal advice to Sheik Kamal Adham, an ex-Saudi intelligence officer who is being investigated for his role in BCCI's takeover of First American Bankshares.

The Miami acting US Attorney is reportedly rebuffed by the Justice Department in his efforts to indict BCCI and some of its principal officers on tax fraud charges. Justice Department later denies this occurred.

1992 Ronald Reagan is introduced at the GOP convention by former senator Paul Laxalt, whose law firm represented BCCI in a drug money case. The chair of the convention, Craig Fuller, has been the number two official of Hill & Knowlton which was involved in the BCCI-First American case. Bush's campaign press representatives has done PR for a Saudi sheik accused of involvement in the BCCI affair, earning $200,000 in fees in just two months.

Employees of Stephens Inc. give more money to the Clinton campaign than those of any other firm except Goldman, Sachs and the NY law firm of Wilke, Farr & Gallagher.

Stephens' Worthen Bank gives Clinton a $3.5 million line of credit allowing the cash-strapped candidate to finish the primaries. Little Rock Worldwide Travel provides Clinton with $1 million in deferred billing for his campaign trips. Without the Worthen and Worldwide largess, it is unlikely that the cash-strapped candidate could have survived through the later primaries.

1995 Webster Hubbell, a former Rose law firm partner -- although not known for skill in Asian trade matters -- goes to work for a Lippo Group affiliate after being forced out of the Clinton administration and before going to jail. Hubbell represented both Worthen and James Riady during the 1980s.

1998 With the settlement of civil fraud charges against Clark Clifford and Robert Altman, the puny and often diverted investigation into the American branch of the BCCI scandal effectively comes to an end. Under the deal, the pair will have to surrender $5 million in stock in First American Bankshares, which had been illegally controlled by BCCI. They will, however, get to keep $10-15 million in proceeds obtained during their tenure as First American attorneys.

*****

The BCCI scandal cheated depositors out of over $10 billion worldwide. Many of these were lower income people now being paid off at 15 and 25 cents on the dollar for damage done by a illegal operation willingly used not only by hundreds of drug dealers and other criminals from various countries but by the intelligence services of five nations (including the CIA) and at least one government, Pakistan, seeking to finance its nuclear weapons development. Things always moved a little too smoothly in the BCCI investigation, leaving scores of unanswered questions and, so far as can be determined, hardly anyone to blame. One exception, Swaleh Naqvi, BCCI's number two man, was given a mild sentence -- over the objections of Manhattan District Attorney Robert Morgenthau. He later told prosecutors that he had never explained to Altman and Clifford who really owned First American.

Naqvi's plea bargain with Justice appeared to have been what the Wall Street Journal called "sweetheart justice." Said the Journal: "When drugs and money laundering arrive, political corruption cannot be far behind. If we had an explanation of how BCCI got away with its illegal purchase of First American, we could afford to dismiss such ambiguous connections as lawyer-client relationships. But we have no such answer, and are left to speculate why, in the Naqvi plea-bargain, the Justice Department does not seem to be pressing for one."

The American media has studiously downplayed the story to the end. The New York Times, for example, put the Altman-Clifford settlement on its business page.

But while the story has disappeared not all the characters connected to this saga have. One, for example, is still president and another is ahead in the polls.


SHOULD ADM. KIMMEL AND GEN. SHORT, WHO KNEW ABOUT THE BOMBING OF PEARL HARBOR IN ADVANCE, BE EXONERATED?

Note: Adm. Kimmel and Gen. Short knew about the bombing of Pearl Harbor in advance and did nothing to prepare for it. Charles Higham, the best-selling biographer in the country and an outspoken anti-fascist, submitted an FOIA request on Kimmel & Short to the Pentagon in the early 1980s, and  concluded that they were closet fascists who collaborated with the Japanese in the decimation of the U.S. Pacific Fleet. Since, the John Birch Society, the Institute of Historical Review and other fascist propaganda founts have campaigned on their behalf in rhetoric charged with sentimental demagoguery, characterizing them as martyrs profaned by a socialist media.

Today, ultraconservatives in the Senate exonerated Kimmel & Short. The AP story and a rebuttal to this right-wing cause celebré follow.  Alex Constantine

Pearl Harbor Officers Exonerated

By REBECCA SINDERBRAND, Associated Press Writer, L.A. Times
Thursday, October 12, 2000

WASHINGTON--The Senate voted Thursday to exonerate two American military commanders accused of dereliction of duty in the 1941 bombing of Pearl Harbor and urged that the president posthumously reverse their demotion in rank.

On a tumultuous day that brought a deadly attack on a U.S. Navy ship in the Middle East, the measure -included in a defense spending bill -revisited the circumstances of the surprise Japanese attack that occurred 59 years ago.

The legislation seeks to reverse the demotions handed Adm. Husband E. Kimmel and Gen. Walter Short, the two senior commanders of U.S. military forces in the Pacific when Pearl Harbor was attacked Dec. 7, 1941. The House passed the measure Wednesday.

"This provision is a matter of justice and fairness," said Sen. William Roth, R-Del., who sponsored the bill.

Roth called on President Clinton to "end the scapegoating of these two fine officers" and reverse the findings of numerous Pentagon panels that have looked into the matter since the end of World War II. Both Clinton and former President Bush turned down similar requests from the two men's relatives.

The legislation calls for restoration of the ranks both men held before the Pearl Harbor attack. Kimmel, who was reduced to rear admiral, would again be promoted to full admiral. Short, who was reduced to major general, would again be promoted to lieutenant general.

Both men retired under a cloud and Short committed suicide shortly after leaving military service.

Constitutionally, Congress' call is only a recommendation. After signing the defense bill, Clinton would still have to take separate action in his role as commander in chief to begin the process of restoring Kimmel and Short's ranks.

The measure expressed the "sense of Congress" that both officers had performed their duties "competently and professionally" and that the Japanese attacks were "not a result of dereliction of duty." The Senate approved a nearly identical provision in last year's defense appropriations bill, but it was stripped out before final congressional approval.

In bitter debate last year, Sen. John Warner, R-Va., who enlisted in the Navy in 1944 at 17 and later served as Navy secretary under Nixon, expressed the Pentagon's view on the issue, opposing what he called "tombstone promotions."

But joining forces with Roth on Thursday was Sen. Strom Thurmond, R-S.C., a retired general in the Army Reserve and former chairman of the Senate Armed Services Committee, who said Kimmel and Short had been "unjustly singled out" by receiving full blame for military not having been prepared for the Japanese attack.
 
Dec. 7 chiefs don't merit exoneration

Honolulu Star-Bulletin, Hawaii¹s World
By A.A. Smyser 
Thursday, December 9, 1999

PRESIDENT Clinton seems to have resisted the temptation the 58th Pearl Harbor attack anniversary provided to remove the blame from Adm. Husband Kimmel and Gen. Walter Short for the disaster.

I hope he hangs in there despite the strong campaign for them led by Kimmel's son. Anecdotes related to me by a later commanding admiral convince me their only defense was ignorance of the full import of a Nov. 27 war warning from Washington. Given all they did know (or should have known) the defense rings hollow.

They had every reason to know Pearl Harbor could be attacked from the air and to be on guard as proper commanders should.

The person whose anecdotes convinced me is the late Adm. Harry D. Felt, who from 1958 to 1964 was CINCPAC, commander-in-chief of all U.S. forces in the Pacific. We kept up a friendship after he retired to a home in Waialae-Kahala. In a 1982 chat he told me the following:

He was a lieutenant commander in charge of an 18-plane dive bomber squadron in 1941, assigned to the aircraft carrier Lexington based at Pearl Harbor. Seven months before the "real thing" -- in naval maneuvers on Sunday, May 12, the Lexington carried out a successful surprise attack on Pearl Harbor. It caught the fleet in port, just as happened the next Dec. 7, and followed
up with a second practice attack on Sunday and another on Monday.

There was no publicity but Kimmel, of course, knew about the attack. He also knew that Lexington had pulled it off by "getting lost" to the south of Oahu, then returning to strike from 200 miles north of Oahu.

PBY flying boats had been flying patrols out of Oahu in all directions to be alert for possible intruding ships or submarines or planes but were told in December 1940 to limit operations to southern sectors only, that northern patrols were unnecessary. The Lexington's surprise attack of Sunday, May 12, 1941, took advantage of this but Kimmel did not restore the patrols. Felt
surmised he must have believed any attack would come from the Japanese-held Marshall Islands to the southwest.

A few weeks before Dec. 7, Felt attended a meeting at the naval base presided over by Kimmel, who focused on small-ship operations in his remarks and did not say a word about aviation.

In a 1940 encounter with the Army Air Corps, surprise was expressed at the naval aviation policy of practice firing at sleeves towed through the sky by another plane. The Army Air Corps then had no air-to-air target practice. It focused entirely on strafing of ground targets.

OTHER records, not alluded to by Felt, show that Short, who controlled the Army air assets, protected his planes from sabotage by gathering squadrons together. That made them easier to strafe from the air.

He also deployed just one air defense radar even though six were available.

A colleague who was with Short the night of Dec. 6 told me Short remarked, "Wouldn't that make a wonderful target?" as they drove by the brightly lighted ships in Pearl Harbor.

Other records also show Kimmel did not restore patrols to the north even after learning in November 1941, that the Navy had lost track of Japan's aircraft carriers. The Lexington was at sea on Dec. 7, 1941. When it returned to a blacked-out Pearl Harbor on Dec. 13 to refuel, Felt was angered at the despondence and destruction he believed might have been minimized or avoided by leaders conscious of danger from the air.

The flawed leadership we had does not deserve exoneration.

---------
A.A. Smyser is the contributing editor
and former editor of the the Star-Bulletin
His column runs Tuesday and Thursday
.

http://starbulletin.com


Vacaville Medical Facility

Vacaville Reporter (Mind Control Clearinghouse.)
F R O M T H E R E P O R T E R
11-12-99

CMF home to notorious outlaws

Manson, Corona amid cons
By Karen Nolan/Reporter Correspondent

Some of the most notorious criminals in California passed through the gates of the California Medical Facility, which in the 1970s stood two miles south of Vacaville.

Charles Manson was among the most notorious inmates at CMF during the 1970s. He lived at the Vacaville prison for a number of years before being transferred to another prison.  Mass murderer Edmund Kemper III, convicted of killing eight Santa Cruz County women - one of them his mother - arrived in 1973 and soon began pleading with Solano County's courts to be allowed to
undergo psychosurgery to cut the violent tendencies from his brain. Time and again his request was rejected.

Richard Schoenfeld, who in 1976 buried a bus full of schoolchildren in Chowchilla, was sent to CMF after his 1978 kidnapping conviction. A year later, Dan White - the San Francisco supervisor for whom Twinkies and handguns did not mix - was evaluated at CMF following his 1979 voluntary manslaughter conviction in the killings of fellow supervisor Harvey Milk and San Francisco Mayor George Moscone. His stay was brief. He was sent on to Soledad.

Former Harvard psychologist Timothy Leary - the LSD-advocating, "turn on, tune in, drop out" guru of the 1960s - didn't stay long either. Serving time for possessing marijuana, as well as his 1970 escape from the Men's Colony at San Luis Obispo, he arrived in November 1973 and disappeared in May 1974. Speculation that he had left to talk to the FBI about his friends in the
Weather Underground was finally confirmed in 1999.

     Leary stayed long enough for his wife to plan his escape, a 1975 Playboy Magazine story revealed. The plan, which "collapsed on its absurdity," called for sending in two helicopters, one decorated with mirrors and lights to look like a UFO and the other outfitted like a
military chopper giving chase.

Escapes real and imagined were linked to the Symbionese Liberation Army, which was born at CMF in 1972, when Donald "Field Marshal Cinque" deFreeze was incarcerated there. Soon after the SLA kidnapped San Francisco newspaper heiress Patty Hearst in February 1974, her father, Randolph A. Hearst, came to CMF to meet with associates of deFreeze. It was a futile effort to find his daughter.

DeFreeze and five other SLA members were killed during a shootout at their Los Angeles hideout in May 1974 - more than a year before Hearst, who had been converted to their cause, was found.

Soon after the kidnapping, The Reporter carried stories about an SLA plan to blow up two CMF guard towers in the summer of 1973. That plan wasn't carried out, but years later it was learned that the SLA did pull off at least one escape that summer: Its members drove away inmate Thero Wheeler when he walked off an honor crew outside the wall. Ironically, the getaway car got
stuck in a ditch and a CMF employee helped to free it - before Wheeler got inside.

Authorities completely discounted late decade reports that tried to link the SLA to another CMF inmate, Charles Manson.

The leader of a drug-using "family" of drifters who killed seven people, including actress Sharon Tate, Manson arrived at CMF for psychiatric treatment in March 1974. When evidence of an escape plot came to light in September, he was quickly sent to Folsom. But just as a CMF psychiatrist predicted at the time, Manson was eventually returned to CMF for more treatment.

It was during his second stint here that a fellow inmate accused him of threatening to kill President Jimmy Carter's mother, Miss Lillian. The accuser was Carter's "bad peanut" nephew, William Carter Spann, who was at CMF serving time for armed robbery.

Another CMF resident who garnered news coverage throughout the decade was Juan Corona. The farm labor contractor accused of hacking to death 25 migrant workers outside Yuba City was housed at the prison when his trial was moved to Solano County in 1973.

Two Vacaville residents served on the jury that first convicted Corona of what at the time was called the largest mass murder in U.S. history. The trial also attracted the attention of Chicano and Mexican-American protesters, who believed Corona was not being dealt with fairly. They
demonstrated continuously outside the Fairfield courthouse. One night after his conviction, they came to Vacaville to support Corona's mother, who spoke at St. Mary's Catholic Church about the effort to secure a new trial.

Corona began serving his life sentence at CMF, and it was there that he was nearly stabbed to death by fellow inmates in December 1973. He lost the sight in his left eye as a result, and was transferred to Soledad. When Corona finally won a new trial in 1978, he was returned to CMF until the proceedings were moved to Alameda County, where he was again convicted in 1982.

CMF made other headlines during the decade. Its program for handling transsexuals came under fire in 1978 when a national magazine raised taxpayer hackles by pointing out that the state was paying for hormones and bras.

Another program that had allowed pharmaceutical and cosmetic companies to test products on inmates since the 1960s, came to light in the mid-'70s, raising eyebrows when the CIA was linked to some of those tests. By the time the program was shut down in 1980, however, the local worry was that the 850 paid inmate guinea pigs would turn violent when they lost their "jobs."


Chile Expels German Colony Leaders

Wednesday October 11, 2000, The Guardian

SANTIAGO, Chile (AP) - The government on Wednesday said it is expelling three leading members of a secretive German enclave in southern Chile that has been accused of serving as a detention and torture camp under the former dictatorship of Gen. Augusto Pinochet.
Deputy Interior Minister Jorge Burgos said an expulsion decree was issued
for Gerhard Mucke, and visas will not be renewed for Helmut Hopp and
Wolfgang Muller.

Mucke's expulsion will be effective after the criminal allegations of kidnapping, obstruction of justice, and aiding a fugitive are resolved. The announcement of the expulsions of the high ranking officials of Dignity Colony came as police staged a new raid at the sprawling enclave 250 miles
south of Santiago. The enclave had up to 400 residents at its peak in the late 1980s.

One of the allegations against Mucke refers to the disappearance in 1974 of Alvaro Vallejos, a dissident leftist student leader.

Enclave leaders have been accused by human rights experts here and abroad of allowing their enclave to be used as a torture and execution center after the 1973 coup led by Pinochet. They were also accused of forcing some members to stay against their will, and sexually abusing children.
They reject all the accusations, calling them part of a communist-inspired smear campaign against them.

Mucke also faces charges for obstruction of justice, for allegedly helping the colony's top leader, Paul Schaefer, to dodge police in several raids on the enclave. Schaefer is a fugitive indicted on child abuse charges more than three years ago.

Police have raided Colonia Dignidad at least 10 other times searching for Schaefer, without success.

Police said on some raids they were also checking on reports that some of the more than 1,000 dissidents who disappeared after being arrested by Pinochet's security services were buried there. Vallejos is one of them. Though the government officially dissolved the colony in 1991, up to 200 of its members still live on the large farm established by German immigrants in the mid 1960s near the city of Parral.