Prescott Bush = Grandfather Bush (a US Senator)
(vice president of W.A. Harriman, one bank "for Hitler")

George Herbert Walker Bush (GHWB) = Senior (ex- President, CIA)

George (Jr.) Walker Bush ("W") = Junior (Texas Governor)

Prescot (Jr.) Bush = older brother of GHWB

Neil Bush = son of GHWB / brother of "W"

Jeb Bush = son of GHWB / brother of "W"

Marvin Bush = son of GHWB / brother of "W" (where's he ?)
what jail, what madhouse? What cretin hotel?

---------------------------------------------------------------
From: Kris Millegan <RoadsEnd@AOL.COM>
To: CTRL@LISTSERV.AOL.COM
Date: Fri, 27 Aug 1999
Subject: [CTRL] [3] The Secret War Against The Jews

an excerpt from:
The Secret War Against The Jews
--------------------------------
John Loftus & Mark Aarons ©1994
ISBN 0-312-11057-X -- 658pps - first edition
St. Martin's Press, 175 Fifth Avenue, New York, NY, 10010

--[3]--
CHAPTER 16

THE MEXICAN CONNECTION

The history books say that George Bush was a war hero, a Texas
entrepreneur, then a senior figure in several Republican
administrations. As president, he worked for a kinder, gentler
nation. Our sources in the intelligence community said that the
American public knows more about Kurt Waldheim's background than
they do about President Bush's. George was himself one of the "old
spies."[1]

The American voters who read Bush's 1987 autobiography, Looking
Forward, certainly would have had no idea about many of the seamier
sides to his family background, his business and espionage
activities, and his political career. It was a thoroughly sanitized
version of history. But does that make him a bad man?

YES!
According to a recent history, Spider's Web, by Alan Friedman,
George Bush was certainly a devious man. The American arms sales to
Egypt and Saudi Arabia begun by Carter were illegally diverted to
Iraq soon after Reagan and Bush took office. Once American arms
started going to the Arabs, only a few regimes, such as Gadhafi's
Libya, could not obtain shipments. It was Bush himself who arranged
the financing, established the policy, and created the covert arms
network that backed Saddam Hussein .[2]

As discussed in the last chapter, when Bush was director of the CIA
in the 1970s, the Agency published false oil data to justify the
arming of the Arab nations. After Bush returned to office in the
1980s, his arms-for-oil agenda became clear. According to
Friedman's analysis of CIA files, U.S. purchases of Iraqi oil
increased twelvefold to over 1 million barrels a day, which helped
finance Iraq's war machine .[3]

From the beginning, Bush's policy was clearly tilted toward the
Arabs and away from Israel. In 1981, when the Israelis destroyed
Saddam Hussein's nuclear reactor at Osirak, Bush was the first
world leader to say that Israel needed to be punished.[4] Even
after Iraq turned American weapons against Israel in the Gulf War
in 1991, Bush refused to permit Israeli pilots to defend their
country for fear it would irritate the other Arab nations. The
Israeli intelligence officers we spoke to regard Bush as their most
vicious American opponent since Allen Dulles.[5]

There is, however, no consensus among the Western intelligence
com-munity. Some of our sources agree with the Israelis that George
Bush was the last, and the worst, of the Dulles clique that brought
the CIA into discredit.[6] Others say that George Bush is a good
man with bad friends. His only major character flaw was an
excessive personal loyalty to friends and family. Bush himself was
ignorant of the plotting that went on around him.[7]

Although it is true that your friends will do you more damage than
your enemies, at some point Bush's defense of ignorance wears a bit
thin. A joke going around during the Iran-Contra scandal said that
"The two biggest lies in Washington are that Ronald Reagan was in
the loop and George Bush was out of it." Because of the importance
of Bush's role in the history of covert operations against Israel,
we discuss his background in some detail. It is a history that has
never been revealed fully before.

In this chapter we consider the following allegations:

o Bush's father and grandfather worked with Allen Dulles to
finance the Third Reich and then, when war broke out, cloaked
their activities under the cover of intelligence operations.

o George Bush established an oil leasing business in Texas, the
biggest client of which was Edwin Pauley, Dulles's confidant,
Nixon's bagman, and a front man for CIA money laundering. Bush
himself played a minor role in CIA covert operations from the
early 1960s.

o Through Pauley, Nixon recruited Bush to handle a variety of
sensitive assignments. Bush later asked Nixon to resign for fear
that the Watergate investigations might uncover further
scandals.

o While not anti-Semitic, Bush was definitely anti-Israeli and
pro-Arab, a bias that colored American oil and arms policy in
the Middle East.
 

The real story of George Bush starts well before he launched his
own career. It goes back to the 1920s, when the Dulles brothers and
the other pirates of Wall Street were first making their deals with
the Nazis. To understand Bush's role as a senior official of the
Republican party, as head of the CIA, as U.S. vice president, and
then, ultimately, in the White House, it is important to trace the
Bush family roots right back to the beginning of the secret
espionage war against the Jews.

Bush's family, say many of the former intelligence officers we
interviewed for this chapter, was nothing to be proud of. The
family, and especially his grandfather and father, dragged him into
some dirty business, and he stayed with it too long, trying to make
a bad thing good.[8]

George Bush's problems were inherited from his namesake and
maternal grandfather, George Herbert "Bert" Walker, a native of St.
Louis, who founded the banking and investment firm of G. H. Walker
and Company in 1900. Later the company shifted from St. Louis to
the prestigious address of 1 Wall Street. The obituary in The New
York Times, which recorded Walker's death in 1953, mainly
highlighted his sporting achievements, in both golf and horse
racing, and his role in financing the "new" Madison Square Garden
in the mid-1920s.[9]

Apart from disclosing that "Grandfather Walker" came from "a devout
Catholic family," was named after the poet George Herbert, and
formed his own investment firm, George Bush revealed practically
nothing about his grandfather in his autobiography.[10] However,
there was another, far seamier side to George Walker. Walker was
one of Hitler's most powerful financial supporters in the United
States. The relationship went all the way back to 1924, when Fritz
Thyssen, the German industrialist, was financing Hitler's infant
Nazi party. As mentioned in earlier chapters, there were American
contributors as well.

Some Americans were just bigots and made their connections to
Germany through Allen Dulles's firm of Sullivan & Cromwell because
they supported fascism. The Dulles brothers, who were in it for
profit more than ideology, arranged American investments in Nazi
Germany in the 1930s to ensure that their clients did well out of
the German economic recovery. "Dulles clearly emphasized projects
for Germany ... and for Mussolini's fascist state . . . All told,
these and more than a dozen similar transactions had a combined
value in excess of a billion dollars."[11]

Sullivan & Cromwell was not the only firm engaged in funding
Germany. According to The Splendid Blond Beast, Christopher
Simpson's seminal history of the politics of genocide and profit,
Brown Brothers, Harriman was another bank that specialized in
investments in Germany. The key figure in the firm was Averill
Harriman, a dominating figure in the American establishment, who
for almost half a century helped form many of Washington's major
foreign policies. Some of his allies in this latter endeavor who
also served on the firm's board included Robert Lovett, who as
previously discussed worked closely with James Forrestal to lead
the State Department's revolt against Truman's pro-Zionist policy
during the UN debate on the partition of Palestine, and George
Bush's father, Prescott, who later became a U.S. Senator.[12]

The firm originally was known as W. A. Harriman & Company. The link
between Harriman & Company's American investors and Thyssen started
in the 1920s, through the Union Banking Corporation, which began
trading in 1924. In just one three-year period, the Harriman firm
sold more than $50 million of German bonds to American
investors.[13] "Bert" Walker was Union Banking's president, and the
firm was located in the offices of Averill Harriman's company at 39
Broadway in New York.[14]

In 1926 Bert Walker did a favor for his new son-in-law, Prescott
Bush. It was the sort of favor families do to help their children
make a start in life, but Prescott came to regret it bitterly.
Walker made Prescott vice president of W. A. Harriman. The problem
was that Walker's specialty was companies that traded with Germany.
As Thyssen and the other German industrialists consolidated
Hitler's political power in the 1930s, an American financial
connection was needed. According to our sources, Union Banking
became an out-and-out Nazi money-laundering machine.[15] As we
shall see, there is substantial evidence to support this charge.

While the United States languished in the Depression, Walker made
millions for his clients by investing in Germany's economic
revival. He decided to quit W. A. Harriman in 1931, to concentrate
on his own firm, G. H. Walker, while his son-in-law stayed behind
to run the show for Harriman. Some say that Walker left George
Bush's father holding the bag.

Others say that Bush specialized in British investors in Nazi
Germany, while Walker handled the Americans.[16]

In that same year Harriman & Company merged with a British-American
investment company to become Brown Brothers, Harriman. Prescott
Bush became one of the senior partners of the new company, which
relocated to 59 Broadway, while Union Banking remained at 39
Broadway. But in 1934 Walker arranged to put his son-in-law on the
board of directors of Union Banking.

Walker also set up a deal to take over the North American
operations of the Hamburg-Amerika Line, a cover for I. G. Farben's
Nazi espionage unit in the United States.[17] The shipping line
smuggled in German agents, propaganda, and money for bribing
American politicians to see things Hitler's way. The holding
company was Walker's American Shipping & Commerce, which shared the
offices at 39 Broadway with Union Banking. In an elaborate
corporate paper trail, Harriman's stock in American Shipping &
Commerce was controlled by yet another holding company, the
Harriman Fifteen Corporation, run out of Walker's office. The
directors of this company were Averill Harriman, Bert Walker, and
Prescott Bush.[18]

In order to understand the character of the firm, it should be
recalled that Brown Brothers, Harriman had a bad reputation, even
among international bankers, as hard-nosed capitalists who
exploited every opportunity for profit in a harsh and ruthless
manner. In a November 1935 article in Common Sense, retired marine
general Smedley D. Butler blamed Brown Brothers, Harriman for
having the U.S. marines act like "racketeers" and "gangsters" in
order to exploit financially the peasants of Nicaragua.[19]

At some point, Prescott Bush must have realized that his
father-in-law was, to put it mildly, a very shady character. A 1934
congressional investigation alleged that Walker's "Hamburg-Amerika
Line subsidized a wide range of pro-Nazi propaganda efforts both in
Germany and the United States."[20] Walker did not know it, but one
of his American employees, Dan Harkins, had blown the whistle on
the spy apparatus to Congress. Harkins, one of our best sources,
became Roosevelt's first double agent. As previously mentioned,
Harkins kept up the pretense of being an ardent Nazi sympathizer,
while reporting to Naval Intelligence on the shipping company's
deals with Nazi intelligence.[21]

To this day, we do not know if Prescott Bush stayed on board out of
loyalty to his father-in-law or because the money was so good.
Instead of divesting the Nazi money, Bush hired a lawyer to hide
the assets. The lawyer he hired had considerable expertise in such
underhanded schemes. It was Allen Dulles. According to Dulles's
client list at Sullivan & Cromwell, his first relationship with
Brown Brothers, Harriman was on June 18, 1936. In January 1937
Dulles listed his work for the firm as "Disposal of Stan [Standard
Oil] Investing stock."

As discussed in Chapter 3, Standard Oil of New Jersey had completed
a major stock transaction with Dulles's Nazi client, I. G. Farben.
By the end of January 1937 Dulles had merged all his cloaking
activities into one client account: "Brown Brothers
Harriman-Schroeder Rock." Schroder, of course, was the Nazi bank on
whose board Dulles sat. The "Rock" were the Rockefellers of
Standard Oil, who were already coming under scrutiny for their Nazi
deals. By May 1939 Dulles handled another problem for Brown
Brothers, Harriman, their "Securities Custodian Accounts."[23]

If Dulles was trying to conceal how many Nazi holding companies
Brown Brothers, Harriman was connected with, he did not do a very
good job. Shortly after Pearl Harbor, word leaked from Washington
that affiliates of Prescott Bush's company were under investigation
for aiding the Nazis in time of war. In February 1942 George Bush's
father, who was by then the senior managing partner of Brown
Brothers, Harriman, tried to wrap himself in the American flag. He
became the national chairman of the United Service Organization's
annual fund campaign, which raised $33 million that year to provide
entertainment for Allied troops.[24]

The cover story did not work. The government investigation against
Prescott Bush continued. just before the storm broke, his son,
George, abandoned his plans to enter Yale and enlisted in the U.S.
Army. It was, say our sources among the former intelligence
officers, a valiant attempt by an eighteen-year-old boy to save the
family's honor.[25]

Young George was in flight school in October 1942, when the U.S.
government charged his father with running Nazi front groups in the
United States. Under the Trading with the Enemy Act, all the shares
of the Union Banking Corporation were seized, including those held
by Prescott Bush as being in effect held for enemy nationals. Union
Banking, of course, was an affiliate of Brown Brothers, Harriman,
and Bush handled the Hairrimans' investments as well.[26]

Once the government had its hands on Bush's books, the whole story
of the intricate web of Nazi front corporations began to unravel. A
few days later two of Union Banking's subsidiaries-the Holland
American Trading Corporation and the Seamless Steel Equipment
Corporationalso were seized. Then the government went after the
Harriman Fifteen Holding Company, which Bush shared with his
father-in-law, Bert Walker, the Hamburg-Amerika Line, and the
Silesian-American Corporation. The U.S. government found that huge
sections of Prescott Bush's empire had been operated on behalf of
Nazi Germany and had greatly assisted the German war effort.[27]

In the midst of the patriotic fervor over the war, it must have
been a crushing experience for young George to know that his father
and grandfather were among the men who helped finance Hitler's war
machine. Little wonder that Bush made no mention of the whole
affair in his autobiography. Still, his relatives were very lucky
not to have gone to jail. Like Dulles, they volunteered to become
spies for the war effort. George's grandfather, Bert Walker, went
to Supreme Allied Headquarters in London to advise on covert
"psychological operations." Prescott Bush's clients, including the
Thyssens, fled to Switzerland, where they joined Dulles's
antiHitler underground.[28]

Prescott himself had served in Military Intelligence during World
War I, liaising with the British. According to our sources, he was
trained by Stewart Menzies, later head of the British secret
service during World War II.[29] Menzies knew that there were too
many British investors in Brown Brothers, Harriman to make an issue
out of their aid to Nazi Germany. It was better to bury the scandal.

By 1945 young George was a bona fide war hero, a fact that his
father later used to good advantage in his successful run for the
U.S. Senate. Like another naval hero, Jack Kennedy, who was also
the son of an infamous Nazi supporter, George's war experience
changed him, even as it redeemed the family's good name. The man
who came back from the war was very different from the boy who had
left.

George had grown up in Greenwich, Connecticut, an upper-class New
York bedroom community. Greenwich was such a notorious hotbed of
anti-Semitism that it became the site for the film A Gentleman's
Agreement, which graphically exposed the prejudice against Jews
held by many members of the nation's elite.

After the war, when George returned to Yale University, the school
openly acknowledged that it had a policy to restrict the number of
Jewish students in each class. Prescott Bush was a trustee at the
time. The 1945 Annual Report of the Board of Admissions mentions a
"Jewish problem" at Yale and publicly states that "the proportion
of Jews . . . has somewhat in-creased and remains too large for
comfort."[30] Apparently, Jews were good enough to fight for the
United States, but Jewish veterans need not apply to Yale.

Such bigotry was appalling to young George. Our sources obtained
access to George Bush's private files in Yale's most exclusive
secret society, the Skull and Bones Club. George was in favor of
admitting both blacks and Jews to this venerable institution.[31]
The sources we interviewed on George's early life say it was a dig
at his father, who was not the most racially progressive member in
the history of the club.[32]

In 1949 the Skull and Bones class, which George Bush helped to
select, finally succeeded in voting away all racial and religious
barriers to membership. George's vote in 1948 for admitting Jews to
the next Skull and Bones club was not his only act of rebellion
against his father's generation. After graduation he shunned a seat
with Brown Brothers, Harriman and asked for a job in China, as far
away from Wall Street as he could get.

His father, who was also on the board of Dresser Industries,
arranged it. There have been rumors that George's trip to China was
somehow connected with espionage. True, Dresser has provided cover
for CIA operatives over the years, but George's trip was strictly
business.[33] it should be noted, however, that among George's
classmates were a number of people who left college to work on
intelligence operations with his father's friend, Allen Dulles.[34]

Try as he did, George Bush could not get away from Dulles's crooked
corporate network, which his grandfather and father had joined in
the 1920s. Wherever he turned, George found that the influence of
the Dulles brothers was already there. Even when he fled to Texas
to become a successful businessman on his own, he ran into the
pirates of Wall Street.

One of Allen Dulles's secret spies inside the Democratic party
later became George Bush's partner in the Mexican oil business.
Edwin Pauley, a California oil man, was, like James Forrestal, one
of Dulles's covert agents in the Roosevelt and Truman
administrations. Like Forrestal, Pauley was a "big business"
Democrat. The parallels didn't end there.[35]

During Roosevelt's presidency, Pauley was a major Democrat
fundraiser and held a series of top posts, including treasurer of
the Democratic party's National Committee.[36] He was also director
of the Democratic convention in 1944 and had an unrivaled
reputation as a man who could shake a great deal of money out of
the oil companies, which were notoriously right-wing and
pro-Republican. Pauley also had the loyalty of President Truman,
especially for his role in getting him the delegate numbers to
replace Henry Wallace as vice president in 1944, which ultimately
took Truman to the White House when Roosevelt died in 1945.[37]
Unfortu-nately, Truman's gratitude was not enough to sweep Pauley's
dirt under the carpet.

The truth is that Pauley was committed to profit and, like the
Dulles brothers, could not distinguish between his own interests
and his public duties. During World War II he was in the perfect
position to assist the Dulles clique in their Nazi oil deals. it
was Pauley who recommended that Roosevelt appoint Interior
Secretary Harold Ickes to the post of Petroleum Administrator for
War, although Pauley later came to regret that action bitterly.
Ickes, in turn, made Pauley his special adviser.[38]

Ickes's choice of Pauley, and several other top oil men, to hold
key positions puzzled many liberals in the Roosevelt
administration. Ickes believed that unless the oil companies were
part of wartime policyrnaking, they "would take the bit in their
teeth and run away with it given any chance."[39] Pauley and Ickes
made a good team, at least while the war still hung in the balance.
They worked to organize the Petroleum Administration for War, and
more important for Allen Dulles, Pauley also held the key position
of Petroleum Coordinator of Lend-Lease Supplies for the Soviet
Union and Britain.[40]

There is some evidence that Ickes used Pauley, an independent oil
man, as a counterbalance to the major oil corporations. For
example, during the war Pauley had several run-ins with the foreign
petroleum coordinator, Max Thornburg. He just happened to be a
senior executive of Standard Oil of New Jersey, which, as
previously discussed was owned by Rockefeller and I. G. Farben and
was secretly sending oil to Hitler. While the war raged, Pauley and
Thornburg fell to squabbling about Mexican oil, which had been
nationalized in the 1930s, when the U.S. giants were thrown out.

In this particular fight, Pauley was supported by Ickes, who
believed that the major companies were more interested in ensuring
their profitable reentry into Mexico than they were in exploiting
Mexican oil for the war effort. Pauley, then working for the
Petroleum Administration while he pushed his own private interests
in Mexico, could not have put it better himself.[41] Pauley's real
concern, however, was not to help the war effort but to gain a
share of Mexican oil profits. After the war he did so, in
partnership with a young independent oil producer by the name of
George Bush.

Despite the obvious conflict of interests, in April 1945 Truman
appointed Pauley as the U.S. representative to the Allied
Reparations Committee, with the rank of ambassador. Simultaneously,
he was made industrial and commercial adviser to the Potsdam
Conference, "where his chief task was to renegotiate the
reparations agreements formulated at Yalta." As one historian
noted, the "oil industry has always watched repa rations activities
carefully."[42] There was a lot of money involved, and much of it
belonged to the Dulles brothers' clients.

As previously discussed, the Dulles brothers were still shifting
Nazi assets out of Europe for their clients as well as for their
own profit. They didn't want the Soviets to get their hands on
these assets or even know they had existed. Pauley played a
significant role in solving this problem for the Dulles brothers.
The major part of Nazi Germany's industrial assets was located in
the zones occupied by the West's forces. As Washington's man on the
ground, Pauley managed to deceive the Soviets for long enough to
allow Allen Dulles to spirit much of the remaining Nazi assets out
to safety. Although Pauley knew that the Soviet zone contained less
than one-third of Germany's industrial assets, as official U.S.
representative he insisted to his colleagues on the Reparations
Committee it controlled 50 percent.[43]

Pauley, a key player in the plan to hide the Dulles brothers' Nazi
assets, then moved into another post where he could help them
further. After successfully keeping German assets in Fascist hands,
Pauley was given the job of "surveying Japan's assets and
determining the amount of its war debt."[44] Again, it was another
job that was crucial to the Dulles clique's secret financial and
intelligence operations.[45]

In January 1946 Truman nominated Pauley as undersecretary of the
navy. The move was "intended by ... Truman as a steppingstone to
his succeeding James Forrestal as [Navy] Secretary."[46] It also
was designed to balance U.S. oil interests against the Zionists and
their wealthy American-Jewish backers. Despite the strength of his
support for the Jews, Truman was signaling that there was room for
a strong oil voice in his administration. Pauley's nomination,
however, ignited considerable political controversy, which
eventually helped force him out of political life in 1947.[47]

Finally, the liberal Ickes had had enough of Pauley's machinations.
Ickes decided that he would not lie to get Pauley's nomination
endorsed by the Senate.[48] When his nomination came up before
Senator Charles Tobey's Naval Affairs Committee for ratification,
Pauley met his match, as evidence of his political bribes and
"black bag" fund-raising operations for the Democrats began to seep
out. Although the oil lobby, supported by President Truman, pulled
out all stops to frustrate Tobey and make him abandon the hearings,
Pauley finally had to retreat. But at least the coverup was safe
for a few more years yet, as the most damaging parts of Pauley's
work for the oil companies did not emerge during the hearings.[49]

The most explosive allegations about Pauley's political bribes came
from Ickes himself. it cost both men their jobs, prompting Ickes's
resignation and, a short while later, Pauley's withdrawal from the
navy job.[50] Despite pressure from Truman, Ickes was only too
eager to tell Tobey's committee exactly the sort of scandal in
which Pauley had been involved. When he testified, Ickes claimed
that Pauley had promised to raise $300,000 for the Democratic party
from among Californian oil men, if the federal government would
drop a court case to establish that offshore oil title belonged to
Washington and not to the state of California.[51]

At the time, Pauley was treasurer of the Democratic National
Committee. Like Forrestal, he hated the fact that the Democrats
were dependent on Jewish financial contributions. Large bribes from
the oil companies, which happened also to suit their business
interests, could tip the party away from the Zionists. Pauley also
just happened to hold two key government oil posts at the time of
his bribe offer. His arm-twisting tactics on the federal suit had
been widely noted in the Washington bureaucracy. Evidence emerged
at the Senate hearings that confirmed Ickes's claims and
contradicted Pauley's own statement, made under oath, that he had
never made such bribery attempts.[52]

If the hearings went on, the whole corrupt business eventually
might seep out. When Pauley denied the bribery charge, it was like
a red rag to the bull called Harold Ickes. No one was going to call
him a liar and get away with it. Invited to reappear at the
hearings, this time Ickes gave the committee chapter and verse. But
if he had hoped for Truman's backing, he miscalculated.[53]

Indeed, despite Truman's support for the Zionists, the president
was playing a careful balancing game with the oil companies. This
time the oil companies won. Truman strongly and publicly supported
Pauley and "questioned the accuracy and loyalty of Ickes's
charges." The president had Ickes's resignation a few days later
and promptly accepted it, "with alacrity and delight."[54] But the
damage was done, and in "the face of further embarrassment to the
Administration and certain rejection by the Senate Naval Affairs
Committee, Pauley reluctantly requested that his nomination be
withdrawn."[55]

It may have worked out for the best for Truman, who had enough
trouble in 1948 convincing the American electorate that his
administration wasn't toeing the oil companies' line about Israel,
without having Edwin Pauley around his neck. Yet another scandal
erupted around Pauley in 1947, which finally ended his political
career and forced his retirement from public life. He now strictly
worked behind the scenes, although, as we shall see, he continued
as a secret Republican agent inside the Democratic party.[56]

Pauley went back to the oil business and, some years later, became
an important factor in the secret war against the Jews. In fact,
Pauley had a significant influence on George Bush's business career
in Texas. In 1958 he founded Pauley Petroleum, which: ... teamed up
with Howard Hughes to expand oil production in the Gulf of Mexico.

Pauley Petroleum discovered a highly productive offshore petroleum
reserve and in 1959 became involved in a dispute with the Mexican
Government, which considered the royalties from the wells to be too
low.[57]

According to our sources in the intelligence community, the oil
dispute was really a shakedown of the CIA by Mexican politicians.
Hughes and Pauley were working for the CIA from time to time, while
advancing their own financial interests in the lucrative Mexican
oil fields. Pauley, say several of our sources, was the man who
invented an intelligence moneylaundering system in Mexico, which
was refined in the 1970s as part of Nixon's Watergate scandal. At
one point CIA agents used Pemex, the Mexican government's oil
monopoly, as a business cover at the same time Pemex was being used
as a money laundry for Pauley's campaign contributions;[58] As we
shall see, the Mexican-CIA connection played an important part in
the development of George Bush's political and intelligence career.

There was a substantial CIA presence in Mexico since at least the
1950s. Pemex was a perfect place to recruit agents of influence
inside the Mexican government. Mexico became part of the "revolving
door" between the oil industry and the intelligence community. One
of the famous oil men-turned-agents was William F. Buckley, Jr.,
like Bush, a Skull and Bones

------------------------------------------------------------
___________________________________________

Anita -- you sent me part of this one....
___________________________________________

Covert Action Quarterly
No.41 (Summer 1992)

The Family That Preys Together

by Jack Colhoun

GEORGE JR.'S BCCI CONNECTION

"This is an incredible deal, unbelievable for this small company,"
energy analyst Charles Strain told Forbes magazine, describing the
oil production sharing agreement the Harken Energy Corporation
signed in January 1990 with Bahrain.

Under the terms of the deal, Harken was given the exclusive right
to explore for gas and oil off the shores of the Gulf island
nation. If gas or oil were found in waters near two of the world's
largest gas and oil fields, Harken would have exclusive marketing
and transportation rights for the energy resources. Truly an
"incredible deal" for a company that had never drilled an offshore
well.

Strain failed to point out, however, the one fact that puts the
Harken deal in focus: George Bush, Jr., the eldest son of George
and Barbara Bush of 1600 Pennsylvania Avenue, Washington, DC, is a
member of Harken's board of directors, a consultant, and a
stockholder in the Texas-based company. In light of this
connection, the deal makes more sense. The involvement of
Junior-George Walker Bush's childhood nickname-with Harken is a
walking conflict of interest. His relationship to President Bush,
rather than any business acumen, made him a valuable asset for
Harken, the Republican Party benefactors, Middle East oil sheikhs
and covert operators who played a part in Harken's Bahrain deal.

In fact, Junior's track record as an oilman is pretty dismal. He
began his career in Midland, Texas, in the mid-1970s when he
founded Arbusto Energy, Inc. When oil prices dropped in the early
1980s, Arbusto fell upon hard times. Junior was only rescued from
business failure when his company was purchased by Spectrum 7
Energy Corporation, a small oil firm owned by William DeWitt and
Mercer Reynolds. As part of the September 1984 deal, Bush became
Spectrum 7's president and was given a 13.6 percent share in the
company's stock. Oil prices stayed low and within two years,
Spectrum 7 was in trouble.

In the six months before Spectrum 7 was acquired by Harken in 1986,
it had lost $400,000. In the buyout deal, George "Jr." and his
partners were given more than $2 million worth of Harken stock for
the 180-well operation. Made a director and hired as a "consultant"
to Harken, Junior received another $600,000 of Harken stock, and
has been paid between $42,000 and $120,000 a year since 1986.

Junior's value to Harken soon became apparent when the company
needed an infusion of cash in the spring of 1987. Junior and other
Harken officials met with Jackson Stephens, head of Stephens, Inc.,
a large investment bank in Little Rock, Arkansas (Stephens made a
$100,000 contribution to the Reagan-Bush campaign in 1980 and gave
another $100,000 to the Bush dinner committee in 1990.)

In 1987, Stephens made arrangements with Union Bank of Switzerland
(UBS) to provide $25 million to Harken in return for a stock
interest in Harken. As part of the Stephens-brokered deal, Sheikh
Abdullah Bakhsh, a Saudi real estate tycoon and financier, joined
Harken's board as a major investor. *5 Stephens, UBS, and Bakhsh
each have ties to the scandal-ridden Bank of Credit and Commerce
International (BCCI).

It was Stephens who suggested in the late 1970s that BCCI purchase
what became First American Bankshares in Washington, D.C. BCCI
later acquired First American's predecessor, Financial General
Bankshares. At the time of the Harken investment, UBS was a
joint-venture partner with BCCI in a bank in Geneva, Switzerland.
Bakhsh has been an investment partner in Saudi Arabia with Gaith
Pharoan, identified by the U.S. Federal Reserve Board as a "front
man" for BCCI's secret acquisitions of U.S. banks.

Stephens, Inc. played a role in the Harken deal with Bahrain as
well. Former Stephens bankers David and Mike Edwards contacted
Michael Ameen, the former chief of Mobil Oil's Middle East
operations, when Bahrain broke off 1989 talks with Amoco for a gas
and oil exploration contract. The Edwardses recommended Harken for
the job and urged Ameen to get in touch with Bahrain, which he did.

"In the midst of Harken's talks with Bahrain, Ameen- simultaneously
working as a State Department consultant-briefed the incoming U.S.
ambassador in Bahrain, Charles Hostler," the Wall Street Journal
noted, adding that Hostler, a San Diego real estate investor, was a
$100,000 contributor to the Republican Party. Hostler claimed he
never discussed Harken with the Bahrainis.

Harken lacked sufficient financing to explore off the coast of
Bahrain so it brought in Bass Enterprises Production Company of
Fort Worth, Texas, as a partner. The Bass family contributed more
than $200,000 to the Republican Party in the late 1980s and early
1990s. *9 On June 22, 1990, George Jr. sold two-thirds of his
Harken stock for $848,560-a cool 200 percent profit. The move was
well timed. One week after Junior sold his stock, Harken announced
a $23.2 million loss in quarterly earnings and Harken stock dropped
sharply, losing 60 percent of its value over the next six months.
On August 2, 1990, Iraqi troops moved into Kuwait and 541,000 U.S.
forces were deployed to the Gulf.

"There is substantial evidence to suggest that Bush knew Harken was
in dire straits in the weeks before he sold the $848,560 of Harken
stock," asserted U.S. News & World Report. The magazine noted
Harken appointed Junior to a "fairness committee" to study possible
economic restructuring of the company. Junior worked closely with
financial advisers from Smith Barney, Harris Upham & Company, who
concluded "only drastic action could save Harken."

George "Jr." also violated Securities and Exchange Commission (SEC)
regulations which require "insider" stock deals to be reported
promptly, in Bush's case by July 10, 1990. He didn't file the stock
sale with the SEC until the first week of March 1991.

Meanwhile, a cloak-and-dagger aura surrounds Junior's business
dealings. James Bath, a Texas entrepreneur who invested $50,000 in
Arbusto Energy, may be a business cutout for the CIA. Bath also
acted as an investment "adviser" to Saudi Arabian oil sheikhs,
linked to the outlaw BCCI, which also has ties to the CIA.

Bill White, a former Bath partner, claims that Bath has "national
security" connections. White, a United States Naval Academy
graduate and former fighter pilot, charges that Bath developed a
network of off-shore companies to camouflage the movement of money
and aircraft between Texas and the Middle East, especially Saudi
Arabia.

Alan Quasha, a Harken director and former chair of the company, is
the son of attorney William Quasha, who defended figures in the
Nugan Hand Bank scandal in Australia. Closed in 1980, Nugan Hand
was not only tied to drug-money laundering and U.S. intelligence
and mi- litary circles, but also to the CIA's covert backing for a
"constitutional coup" in Australia that caused the fall of Prime
Minister Gough Whitlam.

The Harken deal with Bahrain raises another troubling question: Did
the Bahrainis and the BCCI-linked Saudi oil sheikhs use the
production sharing agreement with Harken to curry favor with the
Bush administration and influence U.S. policy in the Middle East?
Talat Othman's sudden rise to prominence in Bush administration
foreign policy circles is a case in point. Othman, who sits on the
Harken board as Sheikh Bakhsh's representative, didn't have access
to President Bush before Harken's Bahrain agreement. "But since
August 1990, the Palestinian-born Chicago investor has attended
three White House meetings with President Bush to discuss Middle
East policy," the Wall Street Journal pointed out. "His name was
added by the White House to a select list of 15 Arab-Americans
chosen to meet with President Bush, [then White House Chief of
Staff John] Sununu and National Security Adviser Brent Scowcroft in
the White House two days after Iraq's August 1990 invasion of
Kuwait."

PRESCOTT'S BIG ASIAN ADVENTURE

Prescott Bush, Jr., the president's older brother, also has a knack
for nailing down "incredible deal[s]." Prescott took advantage of
his brother's first presidential visit abroad in February 1989 to
schedule a business trip to the same countries-China, Japan and
South Korea.

Prescott arrived in Tokyo February 14, 1989, ten days before
President Bush's stop in Japan, to drum up business for Prescott
Bush Resources Ltd., a real estate and development consulting
company. Prescott said he was dealing with four Japanese companies
wanting to do business in the U.S.

From Japan, Prescott went to China, where he had a joint
partnership with Akoi Corporation to develop an $18 million golf
course and resort near Shanghai. Prescott had introduced the
Tokyo-based Akoi to Chinese officials in 1988. With a 30 percent
stake in the project, Prescott used his China connections to pave
the way for capital-rich Akoi. Akoi had run into business obstacles
in China because of lingering Chinese resentment over Japan's
brutal occupation of China in the 1930s and 1940s.

Some of Prescott's most controversial business deals have been with
Asset Management International Financing & Settlement Ltd., a Wall
Street investment firm which has been in bankruptcy proceedings
since fall 1991. Prescott was hired by Asset Management, which paid
him a $250,000 fee for consulting in its joint venture with China
to set up its internal communications network. Asset Management
enlisted Prescott's services soon after President Bush imposed
economic sanctions in June 1989 in response to Beijing's brutal
crackdown on anti-government demonstrators in Tienanmen Square.

Under the sanctions, United States export licenses were suspended
for $300 million worth of Hughes Aircraft satellites, a key
component of Asset Management's joint venture with the Chinese
government. The satellites would beam television programming to
broadcasters in China and provide telecommunications links for the
country's far-flung provinces. In November 1989, Congress passed
additional sanctions specifically barring the export of U.S.
satellites to China unless the president found the sale "in the
national interest."

On December 19, 1989, President Bush lifted the sanctions that
blocked the satellite deal, citing "the national interest." Two
months earlier, the Bush administration had granted Hughes Aircraft
"preliminary licenses" to exchange data with Chinese officials to
ensure that the satellites met the technical specifications of the
Long March rockets which would launch them into space.

Meanwhile, Prescott was hard at work in the summer of 1989 as
middleman in the takeover of Asset Management by West Tsusho, a
Tokyo-based investment firm linked to one of Japan's biggest mob
syndicates. Prescott, as head of Prescott Bush & Co., received a
$250,000 "finder's fee" from West Tsusho when the deal was closed
and was promised an annual retainer of $250,000 over the next three
years as a "consultant." Asset Management, however, went bankrupt
in March 1991. In May 1992, West Tsusho filed a $2.5 million
lawsuit against Prescott claiming that he reneged on his promise to
protect the mob-linked firm's $5 million investment in Asset
Management.

According to Japanese police, West Tsusho is controlled by the
Inagawakai branch of the Yakuza, the Japanese equivalent of the
Mafia crime syndicate. By the mid-1980s, the Yakuza were buying up
real estate and investments in Japan and overseas to launder their
ill-gotten profits from drug sales, prostitution, gambling and
extortion. Yakuza's annual income is estimated at $10 billion.

Like George Jr., Prescott combined business with secret operations.
He offered his services to the covert operations of the Reagan-Bush
campaign in 1980, and later to the Reagan administration. A
September 3, 1980, letter from Prescott to James Baker indicates
Prescott was part of the Reagan-Bush campaign's secret surveillance
of the Carter administration's efforts to obtain release of U.S.
hostages held in Iran. Prior to inauguration, the Reagan-Bush
campaign recruited retired military and intelligence officers to
monitor activities of the CIA, the Defense Department, the National
Security Council, the State Department, and the White House. This
operation later became known as the "October Surprise."

"Herb Cohen-the guy that offered help on the Iranian hostage
situation-called me yesterday afternoon," Prescott wrote in a
letter designated "PRIVATE AND CONFIDENTIAL." "Herb has a couple of
reliable sources on the National Security Council, about whom the
[Carter] administration does not know, who can keep him posted on
developments."

Prescott continued, "He cannot come out now and say that Carter is
going to do something on Iran in October because he said everything
is a contingency plan that is loose and fluid from day to day....
Herb says, however, that if he and others in the administration who
really care about the country and cannot stand to see Carter
playing politics with the hostages, see Carter making a move to
politicize the release of the hostages, he and they will come out
at that time and expose him."

Prescott's covert associations continued while his younger brother
was vice president. He appears to have aided the Reagan
administration's clandestine support of the Nicaraguan Contras. In
the 1980s, he served on the advisory board of Americares, the
U.S.-based relief organization with ties to prominent right-wing
Republicans and the intelligence community. Bush's other son,
Marvin, also helped the family's pet charity and accompanied a
flight of medical supplies to Nicaragua three days after Chamorro's
inauguration. An undisclosed amount of the $680,000 in Americares
aid to Honduras was delivered to Nicaraguan Miskito Indian
guerrillas. Based in Honduras, they were aligned with the
CIA-funded Contras, according to Roberto Ale- jos, a Guatemalan
sugar and coffee grower who coordinated the Americares project in
Honduras. In 1960, Alejos had permitted the CIA to use his
plantations to train right-wing Cubans in preparation for the Bay
of Pigs invasion of Cuba.

In 1985 and 1986, after Congress cut off U.S. aid to the Contras,
Americares donated more than $100,000 worth of newsprint to the
pro-Contra newspaper La Prensa in Managua. Americares supplied
$291,383 in food and medicine and $5,750 in cash to Mario Calero,
New Orleans-based quartermaster and arms purchaser for the Contras,
and brother of Contra leader Adolfo Calero. In this same period,
groups associated with Lt. Col. Oliver North's off-the-shelf Contra
arms network provided covert support for La Prensa.

JEB: LIAISON TO ANTI-CASTRO RIGHT

George Herbert Walker Bush's second eldest son, John Ellis or Jeb,
was also linked to clandestine schemes in support of the Contras.
Soon after congressional prohibition in late 1984, Jeb helped put a
right-wing Guatemalan politician, Dr. Mario Castejon, in touch with
Oliver North. Jeb acted as the Reagan administration's unofficial
link with the Contras and Nicaraguan exiles in Miami.

Jeb was contacted in February 1985 by a friend of Castejon, who
gave him a letter from Castejon to be passed on to then Vice
President Bush. In his letter Castejon, a pediatrician and later an
unsuccessful National Conservative Party presidential candidate,
requested a meeting with George Bush to discuss a proposed medical
aid project for the Contras. Jeb forwarded the letter to his
father. In a March 3, 1985, letter, Vice President Bush expressed
interest in Castejon's proposal to create an international medical
brigade.

"I might suggest, if you are willing, that you consider meeting
with Lt. Colonel Oliver North of the President's National Security
Council Staff at a time that would be convenient for you," Bush
wrote. "My staff has been in contact with Lt. Col. North concerning
your projects and I know that he would be most happy to see you.
You may feel free to make arrangements to see Lt. Colonel North, if
you wish, by corresponding directly with him at the White House or
by contacting Philip Hughes of my staff."

Castejon later met with North in the White House, where he also saw
President Ronald Reagan. When Castejon returned to Washington for a
second visit, he was introduced to members of North's secret Contra
support network, including retired Maj. Gen. John Sing- laub and
Contra leader Adolfo Calero. Castejon also met with a group of
doctors working with Rob Owen, North's liaison with the Contras.

"He [Castejon] was offering us a pipeline into Guatemala," said
Henry Whaley, a former arms dealer who said he was asked by his
intelligence community connections to help Castejon. Whaley was
optimistic about opening a new shipping route to the Contras
through Guatemala. "If you can move Band-Aids," he reportedly said,
"you can move bullets."

With Castejon, Whaley prepared a proposal to the State Department
for the purchase of medical supplies for the Contras from the
Department's newly established Nicaraguan Humanitarian Assistance
Office. The document included requests for mobile field hospitals
and light aircraft to evacuate wounded Contra guerrillas. Congress
approved $27 million in "humanitarian" aid to the Contras in 1985.
The Castejon proposal was hand-delivered to TGS International
Limited in the Virginia suburbs of Washington. Whaley said he sent
the report to TGS so it would be "quietly" forwarded to the CIA.
TGS International is owned by Ted Shackley, who was CIA Associate
Deputy Director of Operations when Bush Sr. headed the Agency in
1976-77.

Jeb had another Contra connection in his involvement with Miguel
Recarey, Jr., a right-wing Cuban who headed the International
Medical Centers (IMC) in Miami. In 1985 and 1986, Recarey and his
associates gave more than $25,000 in contributions to political
action committees controlled by then Vice President Bush. In 1986,
Recarey hired Jeb, a real estate developer, to find a new
headquarters for IMC. Jeb was paid a $75,000 fee, even though he
never located a new building.

In September 1984, two months after IMC's $2,000 contribution to
the Dade County Republican Party, which was headed by Jeb, the vice
president's son contacted several top HHS (Department of Health and
Human Services) officials on behalf of IMC. "Contrary to rumors,
[Recarey] was a good community citizen and a good supporter of the
Republican Party," one official of the HHC remembered Jeb telling
him in late 1984. Jeb successfully sought an HHS waiver of a rule
so that IMC could receive more than 50 percent of its income from
Medicare.30

Leon Weinstein, an HHS Medicare fraud inspector, worked on an audit
of IMC in 1986; he has charged that IMC used Medicare funds to
treat wounded Contras at its hospital. *31 The transaction was
arranged by IMC official José Basulto, a right-wing Cuban trained
by the CIA, who arranged for Contras to receive treatment in Miami.
Basulto was praised for his commitment by Felix Rodriguez: "He has
been active for a decade in supporting the Nicaraguan freedom
fighters ever since the Sandinistas took power, and is constantly
organizing Contra support among Miami's Cuban community. He has
even been to Contra camps in Central America, helping to dispense
humanitarian aid."

At the same time as Recarey was providing medical assistance to the
Contras, he was embezzling Medicare funds. IMC, one of the largest
health maintenance organizations in the United States, received $30
million a month for its Medicare patients, clearing $1 billion in
federal monies from 1981 to 1987. While he headed IMC, Recarey's
personal wealth jumped from $1 million to $100 million, U.S.
investigators believe.

"IMC is the classic case of embezzlement of government funds,"
according to Robert Teich, the head of the Drug Enforcement
Administration's Office on Labor Racketeering in Miami. Reich
described IMC's skimming Medicare funds as a "bust-out" where money
was "drained out the back door." A Florida state investigator
concluded in a 1982 report that some federal funds IMC received
"are being put in banks outside the country."

Recarey's links to the Mafia also raised eyebrows in Washington.
"As far back as the 1960s, he had ties with reputed racketeers who
had operated out of pre-Castro Cuba and who later forged an
anti-Castro alliance with the CIA," the Wall Street Journal
reported. The Journal added that the late Santos Trafficante, Jr.,
the Mafia boss of Florida, "helped out when Recarey needed business
financing." Trafficante, a major drug trafficker, joined a failed
CIA effort to assassinate Cuban President Fidel Castro in the early
1960s.

Recarey's access to Republican circles was probably one reason he
was able to rip-off U.S. tax dollars for so long. He hired former
Reagan aide Lyn Nofziger, the public relations firm Black,
Manafort, Stone and Kelly, which was close to the Reagan White
House, and attorney John Sears, a former Reagan campaign manager,
to look out for his interests in Washington. Recarey fled the
United States in 1987 to avoid a federal indictment for
racketeering and defrauding the U.S. government. The Bush
administration has made no effort to extradite him from Venezuela
where he is currently living.

JEB LINKED TO SMUGGLERS AND THIEVES

Jeb Bush has also been linked to Leonel Martinez, a Miami-based
right-wing Cuban-American drug trafficker. Martinez, who was linked
to Contra dissident Eden Pastora, was involved in efforts to
smuggle more than 3,000 pounds of cocaine into Miami in 1985-86. He
was arrested in 1989 and later convicted for bringing 300 kilos of
cocaine into the U.S. He also reportedly arranged for the delivery
of two helicopters, arms, ammunition, and clothing to Pasto- ra's
Costa Rica-based Contras.

Federal prosecutors in Miami have a photograph of Jeb and Martinez
shaking hands but won't release the photo to the public. Whether
Jeb was aware of Martinez's drug trafficking activities is not
known, but it is known that Leonel and his wife Margarita made a
$2,200 contribution to the Dade County Republican Party four months
after Jeb became the chair of the local GOP.

It is also known that Martinez wrote $5,000 checks to then Vice
President Bush's Fund for America's Future in both December 1985
and July 1986 and made a $2,000 contribution to the Bush for
President campaign in October 1987.

Martinez's construction company gave $6,000 in October 1986 to Bob
Martinez (no relation), the GOP candidate for governor in Florida;
he was governor from 1987 to 1991. At that time, Vice President
Bush was serving as head of the South Florida Drug Task Force and
later as chair of the National Narcotics Interdiction System, both
set up to stem the flow of drugs into the U.S. While Bush was drug
czar, the volume of cocaine smuggled into the U.S. tripled.

President Bush later appointed Bob Martinez in 1991 head of the
U.S. Office of National Drug Control Policy- the drug czar to
succeed the controversial William Bennett.

JEB GETS IN ON THE BCCI ACTION

In 1988, Jeb was mentioned in a deposition taken by a Senate
Foreign Relations subcommittee, chaired by Sen. John Kerry
(D-Mass.), which was investigating drug money laundering operations
in the U.S.

"I saw Jeb Bush two or three times over there with [Abdur] Sakhia,"
stated Aziz Rehman, a junior BCCI-Miami official in the 1980s.
"This was all part of the bank's trying to cultivate public
officials and prominent individuals." *38 Rehman said BCCI's
practice was to "bribe" government officials in the United States.

"Jeb Bush, V.P. George Bush's son," Sakhia noted in a 1986 BCCI
document, was a "name&hellip;to be remembered."

Most of Rehman's testimony focused on his role in BCCI-Miami's
money laundering operation. Rehman said it was his job, in the
mid-1980s, to chauffeur and entertain BCCI-Miami's big clients when
they came to the city from the Caribbean and Latin America. Rehman
described how he deposited large amounts of cash for these clients,
ranging from $100,000 to $2 million, in other Miami banks at which
BCCI-Miami had accounts. To disguise the money trail, BCCI
transferred the cash electronically from Miami to BCCI banks in
Panama and the Grand Cayman Islands.

Jeb's name also shows up in a September 1987 BCCI document written
by Amjad Awan, then a senior BCCI-Miami official. The memorandum
planned a BCCI breakfast meeting with a senior level delegation
from the People's Republic of China and high Florida state
government officials, including Secretary of Commerce Jeb Bush.
Among the Chinese delegation was Ge Zhong Xue, Deputy Division
Chief of the Ministry of Public Security, a top police official.

Meanwhile, Jeb and his business partner Armando Codina profited
handsomely when the Bush administration bailed out Broward Federal
Savings and Loan in Sunrise, Florida, which went belly up in 1988.
The Federal Deposit Insurance Corporation (FDIC) absorbed $285
million in bad loans, including a $4.6 million loan by the
Bush-Codina partnership. According to the deal struck by federal
regulators, the Bush-Codina partnership wrote a check for $505,000
to the FDIC, and the government paid off the remaining $4.1
million of the loan for an office building on which Jeb and Codina
defaulted. As a result of the bailout, the Bush-Codina partnership
retained possession of its office building at 1390 Brickell Avenue
in Miami's posh financial district.

Currently, Jeb is involved in a number of joint ventures with
Codina, a Miami real estate developer who is also a leader of the
right-wing Cuban American National Foundation (CANF). The Brickell
Avenue office building is owned by IntrAmerica Investments. Jeb was
listed in business documents in 1985 and in 1986 as the president
of IntrAmerica Investments, and the building is managed by one of
Jeb's real estate companies. Codina owns 80 percent of the
building, while Jeb owns the remaining 20 percent.

Jeb has acted as the Reagan and Bush administration's liaison with
the politically influential Cuban exile community in South Florida.
Jorge Mas Canosa, president of CANF, succinctly described Jeb's
role as the ultra-right Cuban-American community's liaison with the
White House: "He is one of us."

JEB ASKS DAD TO FREE TERRORIST

As a link to that powerful and wealthy South Florida community, Jeb
has been a tireless supporter of some of the most reactionary
Cuban-American political causes -from promoting CANF projects like
Radio and TV Marti & acute;, to lobbying for the release of
anti-Castro terrorist Orlando Bosch from a Miami jail. TV
propaganda broadcasts into Cuba, considered by legal experts a
violation of the International Telecommunications Convention, are
fully subsidized by U.S. taxpayers.

Anti-Castro terrorist Orlando Bosch was paroled in 1990 after Jeb
lobbied the Bush administration for his release from prison in
Miami. Bosch had been jailed in 1988 for jumping bail on a 1968
conviction for shooting a bazooka at a Polish freighter in the
Miami harbor. He is better known as the mastermind of the explosion
of a Cuban commercial airliner over Barbados on October 5, 1976, in
which 73 passengers were killed. A U.S. District Court judge
revealed in 1988 that secret U.S. documents concluded Bosch was a
leader of the Coordination of United Revolutionary Organizations
(CORU), which was responsible for more than 50 anti-Castro bombings
in Cuba and elsewhere in the Western Hemisphere.

The Cuban government filed an order for his extradi- ction in May
1992.

"TELL HIM...THE VICE PRESIDENT'S SON" CALLED

"There was no conflict of interest," third Bush son Neil told
reporters after the Office of Thrift Supervision (OTS) in
Washington issued a notice of intent in January 1990 to hold a
hearing on the failure of Silverado Banking Savings and Loan. Neil
had been a member of Silverado's board of directors from 1985 to
1988. *45 Federal regulators shut down Silverado shortly after
George Bush was elected president in 1988. The federal bailout cost
U.S. taxpayers $1 billion.

Neil was responding to charges made in an OTS report that he had
"breached his fiduciary duty" to Silverado by engaging in unethical
business deals while a board member of the Denver savings and loan.
The report documented that Neil personally profited from
questionable Silverado loans to his business partners, Ken Good and
Bill Walters. Good and Walters later defaulted on $132 million in
loans to Silverado, leaving the taxpayers to pick up the tab.

The OTS report alleged that Neil failed to disclose his business
connections to Good and Walters when he voted to approve a $900,000
line of credit to Good International, Inc. Neil got Silverado to
write a letter of recommendation to authorities in Argentina, where
Good International, in partnership with Neil's JNB Exploration
Company, was exploring for gas and oil. Good also gave the
President's third son a $100,000 loan to invest in the commodities
market, which Bush was never required to repay.

Neil failed to inform Silverado that Walters had contributed
$150,000 to the initial capitalization of JNB Exploration, or that
Walters' Cherry Creek National Bank in Denver extended a $1.5
million line of credit to JNB Exploration. Neil put up a paltry
$100 in start-up funds in 1983 when he founded JNB Exploration, but
over the next five years was paid $550,000 in salary drawn from the
Cherry Creek National Bank line of credit.

Neil brought few business skills to his job at JNB Exploration but
he was adept at cashing in on his family name. "Tell him Neil Bush
called," Neil once told the secretary of a wealthy Denver oil
entrepreneur. "You know, the vice president's son."

"Neil knew people because of his name," acknowledged Evans Nash,
one of Neil's partners at JNB Exploration. "He's the one that got
us going. He's the one that made it happen for us."

When Neil left JNB Exploration in 1989, the company had yet to
discover a profitable gas or oil well.

NEIL: THE SENSITIVE ONE

Neil's business partners also included shady characters with ties
to the world of covert operations. In 1985, Good received an $86
million loan from the Dallas Western Savings Association, which was
tied to Robert Corson, a Texas developer and reputed CIA operative,
and Herman Beebe, Sr., a convicted Mafia associate of Louisiana mob
boss Carlos Marcello.

Neil profited from the Western Savings loan to Good, because the
loan helped Good buy Gulfstream Land and Development, a Florida
real estate company. Good made Neil a board member of one of
Gulfstream's subsidiaries in 1988. Bush was paid $100,000 a year to
attend occasional Gulfstream board meetings before it went out of
business in 1990.

Investigative reporter Pete Brewton identified Corson as a CIA
operative in a long Houston Post series on CIA links to organized
crime and failed savings and loans. "One former CIA operative told
the Post that Corson frequently acted as `a mule' for the agency,
meaning he would carry large sums of money from country to
country," Brewton wrote.

Corson's Vision Banc Savings in Kingsville, Texas, loaned about $20
million to Mike Atkinson, a Corson associate, for a Florida land
deal put together by Lawrence Freeman. Freeman, who laundered money
for Santos Trafficante, Jr., was also tied to veteran CIA operative
Paul Helliwell. In the Bahamas, Helliwell set up Castle Bank and
Trust Ltd., which was the CIA's primary financial front in Latin
America and the Caribbean during the 1960s and 1970s. Castle
laundered funds for the Agency's covert operations against Cuba.

Walters had ties to Richard Rossmiller, a Beebe associate. In the
mid-1970s, Walters was a part-owner with Rossmiller, of Peoples
State Bank in Marshall, Texas, at the same time as Rossmiller was
doing business with Beebe.

Wayne Reeder, another Beebe associate, a big borrower from
Silverado, defaulted on a $14 million loan. Reeder was involved in
an unsuccessful arms deal with the Contras. Reeder accompanied his
partner, John Nichols, in 1981 to a weapons demonstration attended
by Contra leaders Eden Pastora and Raul Arana, both of whom were
interested in buying military equipment from Nichols.

"Among the equipment were night vision goggles ... and light
machine guns," according to the book, Inside Job: The Looting of
America's Savings and Loans. "Nichols ... had a plan in the early
1980s to build a munitions plant on the Cabezon Indian Reservation
near Palm Springs, California, in partnership with Wackenhut, the
Florida security firm. [But] the plan fell through."

There was another Silverado-Contra connection, however, that didn't
fall through. E. Trine Starnes, Jr., the third largest Silverado
borrower, was a major donor to the National Endowment for the
Preservation of Liberty (NEPL), directed by Carl "Spitz" Channell,
which was a part of Oliver North's Contra funding and arms support
network. A NEPL document, "Top 25 Contributors as of October 3,
1986," showed Starnes contributed $30,000 to NEPL's Central America
Freedom Program. Starnes closed a deal with Silverado on September
30, 1986, for three business loans totaling $77.5 million, on
which Starnes later defaulted.

The Central America Freedom Program was a propaganda effort in
conjunction with the Reagan administration's campaign in 1986 to
win congressional support for resuming arms aid to the Contras.
When the administration wooed potential NEPL donors, Starnes was
invited to a January 30, 1986, White House briefing, which included
Reagan, National Security Adviser John Poindexter, White House
Chief of Staff Donald Regan and Assistant Secretary of State
Elliott Abrams. Congress resumed U.S. arms aid to the Contras in
mid-1986.

In a final ironic Silverado-Contra connection, NEPL banked at the
Palmer National Bank in Washington, a bank with ties to Vice
President Bush and Herman Beebe. Palmer National was also linked to
North's Contra arms network.

Palmer National was established in 1983 by Stefan Halper and Harvey
McClean, Jr., two former aides in Bush's unsuccessful presidential
campaign in 1980. Halper, who had links to the intelligence
community, became deputy director of the State Department's Bureau
of Politico-Military Affairs in the Reagan administration. McClean
was a Beebe associate. Beebe supplied the majority of the
capitalization for the start-up of Palmer National.

"Palmer National lent money to individuals and organizations that
were involved in covert aid to the Nicaraguan Contra rebels,"
Brewton wrote in the Houston Post. "Money was channeled through
Palmer National to a Swiss bank account used by . . . North to
provide military assistance to the Contras."

BUSHED OUT

George Herbert Walker Bush is the first former CIA director to
serve as president. The implications for U.S. politics of Bush's
move from CIA headquarters to the White House are profound and
chilling, but seldom the subject of mainstream political
discussion. The corruption of the Bush family, however, is a good
introduction.

The Bushes' shadowy business partners come straight out of the
world in which the CIA thrives-the netherworld of secret wars and
covert operators, drug runners, mafiosi and crooked entrepreneurs
out to make a fast buck. What Bush family members lack in business
acumen, they make up for by cashing in on their blood ties to the
former Director of Central Intelligence who became president. In
return for throwing business their way, the Bushes give their
partners political access, legitimacy, and perhaps protection. The
big loser in the deal is the democratic process.

----------------------------------------------------

http://204.107.208.2/~ralph/bushbros.html

THREE SORELY NEEDED to be READ articles regarding the BUSH
BROTHERS. In fairness, JEB STATES that he is against ABORTION
and GUN CONTROL. Thanks for the great articles goes to MOJO, and
CypherPunks... If you have information to the contrary or in
support, please forward, as we only want the truth. Thanks !

HOW SOON WE FORGET:

Bush family -- Neil (Silverado Savings), $1 billion; Jeb (Broward
Savings), $221.8 million; and George (BNL-Iraqgate), $5 billion.
All proved a good deal more costly than the up-to-$50 million
involved in the Madison Savings-Whitewater mess.

Prescott Bush, Father of George H. W. Bush, loaned BILLIONS to
HITLER via the UNION BANK CORP of NEW YORK and was shut down for
trading with the enemy!!! BUSH has STRONG ties with CHINA as does
Ken "RED" Starr, more in future post.
 

http://www.mojones.com/mother_jones/JA95/bush.html

Fugitive Fingers Jeb Bush

Confirming a prior Mother Jones report (Sept./Oct. 1992), a
fugitive living in Spain told ABC's "20/20" that Jeb Bush made a
crucial call to Washington when his HMO needed help.

Miguel Recarey's International Medical Centers faced pressure in
1985 to comply with the "50-50" rule, which prohibits certain HMOs
from having more than half of its customers on Medicare. According
to Recarey, the middle son of then-Vice President Bush called
Health and Human Services Secretary Margaret Heckler (meanwhile,
IMC paid Bush's company a $75,000 "real-estate consultant" fee).
Former HHS chief of staff McClain Haddow says Bush's call gave IMC
a waiver to the 50-50 rule, and Recarey allegedly bilked $200
million in Medicare funds while leaving 150,000 seniors without
coverage. Jeb Bush, the GOP loser in Florida's 1994 governor's
race, denies calling Heckler.

http://www.mojones.com/mother_jones/MA94/pizzo.html

Whitewashing the Bush boys

by Stephen Pizzo

If Robert Fiske finds that Bill and Hillary have committed crimes
in the so-called Whitewater-gate matter, they should pay the price.
But according to our Special Prosecute-o-Meter (to come), it would
seem that the Clintons' behavior is being measured differently from
alleged banking misdeeds by the Bush family -- Neil (Silverado
Savings), $1 billion; Jeb (Broward Savings), $221.8 million; and
George (BNL-Iraqgate), $5 billion. All proved a good deal more
costly than the up-to-$50 million involved in the Madison
Savings-Whitewater mess.

But while the national media -- and specifically the New York Times
-- has focused its high-caliber lens on the Clintons, they
apparently have forgiven and forgotten the Bushes' banking
practices.

Consider the remarkably kind November 30 Times front-page profile
of Bush boys George Jr. (running for Texas governor) and Jeb
(running for Florida governor). The story, by Times veteran Maureen
Dowd, was an extraordinary triumph of style over substance.

Dowd kicked off the piece by describing a campaign stop in St.
Petersburg, Fla., where a woman directed a stream of idiotic "One
World tool of the Communist-Wall Street international conspiracy"
accusations at Jeb Bush (coyly described as a "slender
six-foot-four"). Dowd jumped to Jeb's defense, labeling the woman's
accusations "wacky."

Fair enough. But in her 2,000-word article Dowd neglected to
mention any of the other, far more serious allegations of
wrongdoing that have been leveled at the Bush boys, leaving readers
with the impression that these accusations are also just the
"wacky" complaints of nuts out to harass the poor Bush family.
After all, the "Newspaper of Record" has declared them so.

Had Dowd done her background work she would have found no shortage
of decidedly unwacky Bush stories. Among others: a 1987 front-page
article in the Wall Street Journal chronicling how Jeb helped a
Cuban con man bilk Medicare out of millions of dollars; MoJo's
Sept./Oct. 1992 cover story ("My Three Sons") on the Bush sons'
long list of dubious business transactions (including George Jr.'s
alleged violation of security laws governing insider stock sales
when he sold his shares of Harken Oil on the eve of the Gulf War);
and a recent New Yorker article detailing sleazy activities by Neil
and number-four son Marvin Bush. The Times even ran an April 1992
story listing some of the Bushes' questionable deals (perhaps all
motivated by the "Bush creed of competition" that Dowd notes
approvingly).

When contacted by MoJo, Dowd wouldn't defend her story, saying,
"Look, I'm not an investigative reporter, and clearly I wish now
that I'd written a different piece. The Bush family never really
liked me anyway." They may like her better now.

Short memories are also evident in Washington, D.C., where Bob Dole
is complaining that House Banking Chairman Henry Gonzalez, D-Tex.,
is dragging his feet on Whitewater, but "held weeks of hearings"
when Neil Bush got swept up in the failure of Silverado, even
though he "had no direct involvement."

Actually, Neil sat on Silverado's board of directors until the
thrift was declared functionally insolvent. That's about as
"involved" as you can get.

Republicans are also upset over a Small Business Administration
loan of $300,000, taken out by Susan McDougal, that went into
Whitewater Development and later into default. Guess they've
forgotten that $2.35 million SBA loan Neil received for his new
company, Apex Energy, after bugging out of Silverado. (He walked
away from this obligation, too.)

But there may be a silver lining: If our meter is used as a gauge,
then Gonzalez's demand for a special prosecutor in the BNL-Iraqgate
affair should get serious consideration. Republicans ought to
meditate on the old adage, "Beware what you wish for. You may just
get it."

--Stephen Pizzo

http://www.oberlin.edu/~brchkind/cyphernomicon/chapter16/16.14.html
-------------------------------------------------------------------
Cyphernomicon 16.14

Crypto Anarchy:
Money Laundering and Tax Avoidance

-------------------------------------------------------------------

EXCERPTS DEALING with the BUSH BROTHERS

16.14.4. Money Laundering and Underground Banks

+ a vast amount of money is becoming available under the
table: from skimming, from tax avoidance, and from illegal
activities of all kinds
- can be viewed as part of the internationalization of all
enterprises: for example, the Pakistani worker who might
have put his few rupees into some local bank now deposits
it with the BCCI in Karachi, gaining a higher yield and
also increasing the "multiplier" (as these rupees get
lent out many times)
- is what happened in the U.S. many years ago
- this will accelerate as governments try to get more taxes
from their most sophisticated and technical taxpayers,
i.e., clever ways to hide income will be sought
+ BCCI, Money-Laundering, Front Banks, CIA, Organized Crime
+ Money Laundering
- New York City is the main clearinghouse, Federal
Reserve of New York oversees this
- Fedwire system
- trillions of dollars pass through this system, daily
+ How money laundering can work (a maze of techniques)
- a million dollars to be laundered
- agent wires it, perhaps along with other funds, to
Panama or to some other country
- bank in Panama can issue it to anyone who presents
the proper letter
- various ways for it to move to Europe, be issued as
bearer stock, etc.
- 1968, offshore mutual funds, Bernie Kornfield
+ CIA often prefers banks with Mob connections
- because Mob banks already have the necessary security
and anonymity
- and are willing to work with the Company in ways that
conventional banks may not be
+ links go back to OSS and Mafia in Italy and Sicily, and
to heroin trade in SE Asia
- Naval Intelligence struck a deal in WW2 with Mafia,
wherby Meyer Lansky would protect the docks against
strikes (presumably in exchange for a "cut"), if
Lucky Luciano would be released at the end of the war
(he was)
- Operation Underworld: Mafia assisted Allied troops in
Sicily
- "the Corse"
+ Luciano helped in 1947 to reopen Marseilles when
Communist strikers had shut it down
- continuing the pattern of cooperation begun during
the war
- thus establishing the French Connection!
- Nugan Hand Bank
+ BCCI and Bank of America favored by CIA
- Russbacher says B of A a favored cover
+ we will almost certainly discover that BCCI was the
main bank used, with the ties to Bank of America
offices in Vienna
+ Bank of America has admitted to having had early
ties with BCCI in the early 1970s, but claims to
have severed those ties
- however, Russbacher says that CIA used B of A as
their preferred bank in Europe, especially since
it had ties to companies like IBM that were used
as covers for their covert ops
- Vienna was a favored money-laundering center for CIA,
especially using Bank of America
+ a swirl of paper fronts, hiding the flows from regulators
and investors
- "nominees" used to hide true owners and true activities
- various nations have banking secrecy laws, creating the
"veil" that cannot be pierced
+ CIA knew about all of the flights to South America (and
probably elsewhere, too)
- admitted Thomas Polgar, a senior ex-CIA official, in
testimony on 9-19-91
- this indicates that CIA knew about the arms deals, the
drug deals, and the various other schemes and scams
+ Earlier CIA-Bank Scandals (Nugan Hand and Castle Bank)
+ Nugan Hand Bank, Australia
+ Frank Nugan, Sydney, Australia, died in 1980
+ apparent suicide, but clearly rigged
- Mercedes, rifle with no fingerprints, position
all wrong
- evidence that he'd had a change of heart-was
praying daily, a la Charles Colson-and was
thinking about getting out of the business
+ set up Nugan Hand Bank in 1973
- private banking services, tax-free deposits in
Caymans
+ used by CIA agents, both for Agency operations and
for their own private slush/retirement funds
- several CIA types on the payroll (listed their
addresses as same as Air America)
- William Colby on Board, and was their lawyer
+ links to organized crime, e.g., Santo Trafficante,
Jr.
- Florida, heroin, links to JFK assassination
- trafficante was known as "the Cobra" and handled
many transactions for the CIA
+ money-laundering for Asian drug dealers
+ Golden Triangle: N-H even had branches in GT
- and branch in Chiang Mai, in Thailand
- links to arms dealers, like Edwin P. Wilson
+ U.S. authorites refused to cooperate with
investigations
- and when info was released, it was blacked out with
a "B-1" note, implying national security
implications
+ investigations by Australian Federal Bureau of
Narcotics were thwarted-agents transferred and
Bureau disbanded shortly thereafter
- similar to "Don't fuck with us" message sent to
FBI and DEA by CIA
+ N-H Bank had close working relation with Australian
Security Intelligence Organization (ASIO)
- NSA tapped phone conversations (speculative) of
Nugan that indicated ASIO collusion with N-H Bank
in the drug trade
+ Pine Gap facility, near Alice Springs (NSA, NRO)
- P.M. Gough Whitlam's criticism of Pine Gap led to
CIA-ASIO plot to destroy the Whitlam gov't.
- November 1975 fall instigated with wiretaps and
forgeries
+ Nugan Hand Bank was also involved with "Task Force
157," a Naval Intelligence covert operation, given
the cover name "Pierce Morgan" (a good name?)
- reported to Henry Kissinger
- recall minor point that Navy is often the preferred
service for the ruling elite (the real preppies)
+ and George Bush's son, George W. Bush, was involved
with Nugan Hand:
- linked to William Quasha, who handled N-H deals in
Phillipines
+ owners of Harken Energy Corp. a Texas-based company
that bought G.W. Bush's oil company "Spectrum 7" in
1986
- later got offshore drilling rights to Bahrain's
oil-with G.W. Bush on the Board of Directors
- could this be another link to Gulf Crisis?
+ Castle Bank, Bahamas, Paul E. Helliwell
+ OSS (China). CIA
- Mitch WerBell, White Russian specialist in
assassination, silencers, worked for him in China
- Howard Hunt worked for him
- after WW2, set up Sea Supply Inc., CIA front in Miami
+ linked to Resorts International
- law firm of Helliwell, Melrose and DeWolf
- lent money to Bahamian P.M. Lynden Pindling in
exchange for extension of gambling license
+ Robert Vesco, Bebe Rebozo, and Howard Hughes
- in contrast to the "Eastern Establishment," these
were Nixon's insiders
- links with ex-CIA agent Robert Maheu (who worked
for Hughes); onvolved withTrafficante, CIA plot to
kill Castro, and possible links to JFK
assassination
- Vesco active in drug trade
+ also involved in purchase of land for Walt Disney
World
- 27,000 acres near Orlando
- Castle Bank was a CIA conduit
+ Operation Tradewinds, IRS probe of bank money flows
- late 60s
- investigation of "brass plate" companies in Caymans,
Bahamas
+ Plot Scenario: Operation Tradewinds uncovered many
UltraBlack operations, forcing them to retrench and
dig in deeper, sacrificing several hundred million
- circa 1977 (Castle Bank shut down)
+ World Finance Corporation (WFC)
+ started in 1971 in Coral Gables
- first known as Republic National Corporation
- Walter Surrey, ex-OSS, like Helliwell of Castle
Bank, helped incorporate it
+ Business
- exploited cash flows in Florida
- dealt with CIA, Vesco, Santo Trafficante, Jr.
- also got loan deposits from Arabs
- links to Narodny Bank, the Soviet bank that also
pay agents
+ a related company was Dominion Mortgage Company,
located at same address as WFC
- linked to narcotics flow into Las Vegas
- and to Trafficante, Jr.
- suitcases of cash laundered from Las Vegas to
Miami
- Jefferson Savings and Loan Association, Texas
+ Guilermo Hernández Cartaya, ex-Havana banker, Cuban
exile, was chief figure
- veteran of Bay of Pigs (likely CIA contacts)
- investigated by R. Jerome Sanford, Miami assistant
U.S. attorney
- Dade County Organized Crime Bureau also involved in
the 1978 investigation
- Rewald and his banking deals
- BCCI was a successor to this bank
+ CIA and DEA Links to Drug Trade
- former agents and drug traffickers were frequently
recruited by DEA and CIA to run their own drug
operation, sometimes with political motivations
- Carlos Hernández recruited by BNDD (Bureau of Narcotics
and Dangerous drugs, predecessor to DEA) to form a
death squad to assassinate other drug traffickers
+ possible links of the drug dealers to
UltraBlack/Witness Security Program
- agents in Florida, the stock broker killing in 1987
- Seal was betrayed by the DEA and CIA, allowed to be
killed by the Columbians
+ Afghan Rebels, Arms to Iran (and Iraq), CIA, Pakistan
- there was a banking and arms-running network centered
in Karachi, home of BCCI, for the various arms deals
involving Afghan rebels
- Karachi, Islamabad, other cities
+ Influence Peddling, Agents
- a la the many senior lawyers hired by BCCI (Clark
Clifford, Frank Manckiewicz [spelling?]
+ illustrates again the basic corruptability of a
centralized command economy, where regulators and
lawmakers are often in the pockets of corrupt
enterprises
- clearly some scandals and losses will occur in free
markets, but at least the free markets will not be
backed up with government coercion
+ Why CIA is Involved in So Many Shady Deals?
+ ideal cover for covert operations
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