Part 2

excerpted from the book


The Book That Drove Henry Kissinger Crazy

[international drug trafficking, money-laundering, and state power]

Executive Intelligence Review, 1992, paperback (original 1986)

When we speak of the drug-related illegal economy-for drugs are the pivot on which most other illegal activity turns - we are talking of a $500 billion per year business. That is net, not gross, annual sales of drugs, plus related illicit payments. How can such activity avoid sticking out wildly, especially in areas of concentration such as the Far East? Because the British monarchy organized most of the Far East to conform to the drug traffic! How can $500 billion in illegal payments get through the international banking system past the eyes of law enforcement authorities? The answer is: the British "offshore" banking system. This and related precious metals and gems trade were designed around illegal money in the first place!

The law enforcement record shows that Dope, Inc. does its best to avoid mishaps through careful research-done on the streets of American cities-which is transmitted back to the poppy fields. Poppy growers in the Burmese or the Chinese Yunnan Province mountains and foothills do not plant what they feel like, but what they are told to plant.

Once world illegal opiates traffic comes under scrutiny as an integrated, centralized "monopoly," the discrepancy between the huge oversupply and relatively restricted demand presents no further difficulties. We are looking at an "industry" based on the same principles as the world diamond cartel controlled by De Beers, or the so-called club among leading pharmaceuticals manufacturers. Diamond production capacity is so large relative to the absorption capacity of the world market that De Beers' Central Selling Organization, running 85% of world diamond wholesale trade, limits availability in order to obtain essentially the price it wants. Pharmaceuticals are, ironically, an even better example. Since the knowledge to manufacture more of the commonly used prescription drugs is widespread among the pharmaceuticals companies, and since the costs of production are insignificant compared to the retail prices of most drugs, elaborate legal arrangements are necessary to prevent a price collapse. Notoriously, the profits of the pharmaceuticals industry owe not to chemists but to patent lawyers.

The $500 billion international narcotics trade today is second only to the world oil trade. Total world trade volume is $1.7 trillion.

... The question that emerges now is: "How is it possible that $500 billion and up in dirty money, crisscrossing international borders, can remain outside the control of the law?" Again, only one possible answer can be admitted: A huge chunk of international banking and related financial operations has been created solely to manage dirty money.

The British banking operations that control illegal drug and related trade are ... the only possible banking network that could handle the requisite volume of illegal traffic. The British oligarchy's banking operations - including the Boston-New York "Tory" banking establishment of the United States - have the following qualifications:

1. They have run the drug trade for a century and a half.

2. They dominate those banking centers closed off to law enforcement agencies.

3. Almost all such "offshore," unregulated banking centers are under the direct political control of the British monarchy and their allies.

4. They dominate all banking at the heart of the narcotics traffic; the Hongkong and Shanghai Bank, created in 1864 to finance the drug trade, is exemplary.

5. They control world trade in gold and diamonds, a necessary aspect of "hard commodity" exchange for drugs.

6. They subsume the full array of connections to organized crime, the prodrug legislative lobby in the United States, and all other required elements of distribution, protection, and legal support.

The offshore banking markets are precisely what the name implies: either Britain's old island colonies refurbished for international banking, or inland feudal relics like Andorra and Liechtenstein. Federal bank regulators will only stare at their shoes when asked what goes on in such locations.

In the Cayman Islands, one of the largest offshore centers, the only government is the official "Tax Haven Commission." Law enforcement officers have absolutely no way of getting hold of bank records in such places. Repeatedly, they have identified the offshore centers as the place to look for dirty money. They have not been able to investigate, because almost all the centers are under British political protection.

American banks do a land office business in the offshore centers, precisely because no reserves are needed, and every dollar of deposits can be lent out for interest.

With very few exceptions, offshore banking as a whole is under the thumb of the British oligarchy.

Although Switzerland has signed a treaty with the United States permitting law enforcement officers to investigate and seize funds relating to illegal narcotics traffic, Swiss banks are notorious depots for dirty money.

American drug enforcement authorities know that most of the dirty money arising from the U.S. drug trade and related illegal activities ends up in the Bahamas.

Virtually the only one of the offshore centers not under official British control is Panama; not coincidentally, Panama is the only offshore center where American banks strongly outnumber British banks. That is not to say that Panama is clean; on the contrary, funds derived from the Colombian trade in marijuana and cocaine are laundered through Panama, including through the three large Colombian banks resident there.


Hong Kong was set up by the British, literally from bare rock, as a center for the drug trade, and remains to this day purely British, and purely a center for the drug trade.

The Drug Enforcement Administration and other law enforcement organizations know how the cycle of dirty money in the United States works. The $200 billion retail proceeds of the total drug traffic in the United States are partly recycled into the drug operation in the United States itself, with large "offtake" by each level of the crime machine. The net profits, in cash, are laundered through hotels, restaurants, gambling casinos, and sports events-the "corporate profile" of the Max Jacobs family and other field officers of the drug machine.

Alter the cash is laundered through these nominally legitimate channels, it is transferred to offshore banking operations or their equivalent. Then, according to DEA officials, the funds take several trips around the world over the telex machines of offshore banks, passing through at least a half-dozen, and usually more, different bank accounts and corporate fronts, from the Caymans to Liechtenstein, from Liechtenstein to the Bahamas, from the Bahamas to a "nonresident corporation" in Canada, from Canada to Panama, and so forth.

At various points in the process, the funds will purchase diamonds, gold, paintings, or similar portable valuables. At a further point, the valuables will be translated back into cash, eliminating even the trace of a bank transfer. For this reason, the use of undercover agents, in place even at fairly high levels in known branches of narcotics-trafficking, has a poor record of detecting either the source or ultimate destination of narcotics-related funds.

Once laundered, the proceeds of the drug traffic and related illegal activities divide into three channels. First, between 10 and 20% of the total is recycled back to the opium wholesalers in the Far East and the marijuana and cocaine wholesalers in the Caribbean and Latin America, constituting the net profits of the wholesale drug trade. A second part is invested in expansion of offshore operations, particularly gambling casinos, resorts, and other profitable operations that are also useful for further laundering of dirty money. The remainder is reinvested in the United States in "legitimate" racing, gambling, hotels, restaurants, and other business appropriate for cash-laundering and expansion of the domestic drug traffic.

Retail dope dealers take well over $200 billion a year off American streets and school corridors. Most of this money, though not all, flows in one way or another back to wholesale traffickers who need to "launder" it. They start with close to $200 billion in cash, and end up with bank accounts in the British-protected offshore banking havens / in the Caribbean or Asia.

Vast quantities of gold are absorbed into the Asian drug trade - an inestimable percentage of the 400 to 600 tons of the metal that pass through the Orient in a year, mainly through Hong Kong, and mainly through subsidiaries of the Hong-Shang [Bank]. The trade could not run without it and other precious, portable, untraceable substances-like diamonds.

Hong Kong depends entirely on the London gold pool for its supplies.

The London gold pool is the same operation as the Hongkong and Shanghai Bank, controlled by the same London families whose drug-running activities go back 150 years.

There are two major South African gold producers, AngloAmerican and Consolidated Gold Fields; there is one major South African diamond producer De Beers, largely owned by Anglo-American; and five major London gold pool firms, who meet every day in the trading room of N.M. Rothschild at New Court, St. Swithin Street, London, to set the world gold "fixing." Examining these firms individually, we discover such a manifold of connections that it is meaningless to speak of the London and Hong Kong gold markets as anything but branch offices of the same operation.

Second in importance[to gold] in the money-laundering process is the world diamonds market, whose single presiding manager is Sir Harry Oppenheimer of the De Beers Corporation. Oppenheimer is also the chairman of the larger South African gold producer, Anglo-American. The Anglo-American and De Beers complex runs the Hong Kong side of the money-laundering diamonds operation on two levels-wholesale and retail. De Beers runs 85% of the wholesale diamonds market; through his intimate Israeli connections, Oppenheimer also runs the Hong Kong diamond market.

There are two points of special relevance for diamonds to the international heroin traffic. The first is that, in value relative. to size and weight, diamonds are the closest approximation to heroin as a store of value for furtive use. Second, the De Beers-controlled international diamond cartel operates according to a pyramidal structure identical to that of the world heroin trade.

The use of expatriate ethnic networks for the dirtier side of the operations is also homologous, except that in the case of diamonds, largely Jewish networks take the place of Ch'ao Chou Chinese networks. Not coincidentally, there is almost as little publicly available information on international diamonds trade as on the heroin traffic.

South Africa's largest producer, De Beers, was the 1888 creation of Cecil Rhodes; in 1929, the company underwent reorganization by Sir Ernest Oppenheimer, of the Anglo-American family. De Beers controls the Central Selling Organization (CSO), which handles 85% of international diamond trade.

At ten "sights" each year, 300 clients purchase stones from the CSO. The list of these select clients is secret. After their purchase by the secret list of clients, the diamonds are sent to cutting centers for further preparation. The two dominant cutting centers are Antwerp and Ashqelon, in Israel. Antwerp's diamond-cutting and related trade is financed by the Banque Bruxelles-Lambert, controlled by the Lambert family, the Belgian cousins of the Rothschilds. Israel's (and also New York's) diamond business is financed by Bank Leumi...

Within the individual centers, dealers trade among themselves on such exchanges as the New York Diamond Dealers Club, the Ramat Gan in Tel Aviv, and the Antwerp Diamond Bourse. No written records are kept of any transactions on these exchanges; the agreements are sealed with a handshake. No aspects of this trade are available for scrutiny by law enforcement agencies, even under American law, before the diamonds reach the jewelry store level.

... Hong Kong's own substantial wholesale diamond market was the virtual monopoly of the UnionBank of Israel; this bank was wholly owned by Israel's largest finance house, Bank Leumi. Bank Leumi, in turn, was under the control of Barclays Bank, on whose board sat Harry Oppenheimer and the Oppenheimer family itself. Bank Leumi's own chairman was Ernst Israel Japhet, of the Charterhouse Japhet family whose fortune derived from the official British opium trade during the nineteenth century!

Ten times a year, representatives from the Ramat Gan, Tel Aviv's diamond exchange, go with Union Bank financing to the De Beers Central Selling Organization "sights" in London, and purchase one-third of the world diamond output.

Like the Beijing-British controlled Ch'ao Chou networks in the Far East, Britain's Anglo-Zionist financiers are a cult unto themselves, with their own family networks, rituals, and language. New York's diamond market consists, at the lower levels, mainly of members of the Hasidic sects resident in the area.

Hong Kong, and its premier bank, the Hongkong and Shanghai Banking Corporation, sit on top of the Golden Triangle drug production and trafficking.

The British Crown Colony of Hong Kong, with the British Hongkong and Shanghai Banking Corporation at the top, is considered the number-one money-laundering center for the heroin trade.

... Illegal drugs are the biggest business in the Far East-and close to being the biggest business in the world - but in Hong Kong, drugs do not merely dominate the economy: They are the economy.

Hong Kong is the most drug-ridden place in the world, per capita. Official British police estimates have it that 10% of Hong Kong's population or 500,000 people, are hardcore addicts. Unofficial estimates run this figure up to 50%. A safe, conservative estimate is 20% or 1 million people - more than New York City's addicts... with a drugged up population of that size, the life of Hong Kong's population must be organized around illegal activity.

Most estimates put [New York's drug] addict population at 500,000. Assuming a $50 per day habit is average-which the federal estimates apparently do - this addict population must obtain $9 billion a year out of New York City's faltering economy to meet its needs.

Where does it get $9 billion? Not substantially through well-paying jobs. With rare exceptions that is physically impossible. Not from muggings; however bad matters seem, neither 500,000 muggings, nor a combination of muggings and burglaries, take place daily in New York City. Even prostitution could contribute only a small portion of the $9 billion annual habit of New York City's addicts.

Where does the money come from? From organized crime activity: the numbers racket, bookmaking, protection rackets, auto theft, stolen auto parts distribution, prostitution, pornography, arson-for-hire, and similar occupations. Drug addiction could not possibly exist without organized crime to provide the means of financing addiction. Law enforcement authorities estimate that 80% of all crime in New York City is drug-related.

The Royal Institute of International Affairs (RIIA) and its leading personnel control not only the Far Eastern drug traffic but every important dirty money operation on the surface of he globe.

A concise summary of the RIIA's [Royal Institute of Affairs] purposes appears in its de facto founding document, Cecil Rhodes's 1877 bequest. Rhodes, who founded both the gold and diamond mining empire that still dominates world markets under the aegis of AngloAmerican and De Beers, and also founded the dope-trading Standard Bank ... Rhodes left his wealth to the Rhodes Trust, administered by Lord Milner. Milner's collection of Oxford trainees, called the "Milner Kindergarten," made up most of the 1916 Lloyd George government, and formed the RIIA at a meeting in Versailles on May 30, 1919.

[Cecil] Rhodes's 1877 will was:

To establish a trust, to and for the establishment and promotion and development of a secret society, the true aim and object whereof shall be the extension of British rule throughout the world, the perfecting of a system of emigration from the United Kingdom and the colonization by British subjects of all islands wherein the means of livelihood are attainable by energy, labor, and enterprise, and especially the occupation by British settlers of the entire continent of Africa, the Holy Land, the valley of the Euphrates, the islands of Cyprus and Candia, the whole of South America, the islands of the Pacific not heretofore possessed by Great Britain, the whole of the Malay Archipelago, the seaboard of China and Japan, the ultimate recovery of the United States of America as an integral part of the British Empire, the consolidation of the whole Empire, the inauguration of a system of colonial representation in the Imperial Parliament which may tend to weld together the disjointed members of the Empire, and finally, the foundation of so great a power as to hereafter render wars impossible and promote the best interests of humanity!

The secret society concept was passed on by Miler, Rhodes's successor as high commissioner in South Africa, through Milner's trainees Lionel Curtis (of the Roundtable group), and Lord Robert Cecil-whose family dates back to the Genoa-Amsterdam coup against Elizabethan humanism in 1601. Curtis and Cecil both participated in the May 1919 meeting at Versailles that founded the RIIA.

The Royal Institute of International Affairs is the secret society.

Much of the heroin entering North America comes through Canada. This is the estimate of authoritative law enforcement sources.

Virtually everything the reader now knows about the British Crown Colony of Hong Kong applies to the British Dominion north of the American border. The idea that Canada is a nation - in the sense that Americans understand the term - is the product of low-grade, if persistent, public relations efforts. Politically and financially, Canada is run straight from the top by the British monarchy, starting with the Governor-General whom the Queen appoints, the Privy Council, and including the core group of Knights of St. John of Jerusalem who control the bulk of Canadian business.

Canada's role in the drug flow to the United States is not much different from its role during Prohibition. Canada transships much of the heroin entering the American market, because it was created and maintained as a British Dominion on the northern flank of the United States to carry out precisely such operations.

Canada's Official Secrets Act, modeled Great Britain's own 1911 Official Secrets Act ... prevents any publication or public discussion of what the government - that is, the British-appointed Governor-General - chooses to regard as a state secret. Given Canada's makeup, most drug-running, dirty money-laundering, and organized crime activity, including political terrorism, fall into that category. Anyone who writes about this in Canada will go to jail immediately and could, under the law, be executed.

According to high-level Canadian intelligence sources, large quantities of heroin that reach North America are flown in through Canadian Pacific Air. There is no "smoking gun" evidence to substantiate this, but a November 1978 trial in Vancouver revealed evidence that Canadian Pacific was involved in the smuggling of twenty-two pounds of cocaine from Hong Kong.

The drugs come in through Canadian Pacific and then are conduited to points south of the border. Heavily interlocked with the Western Canada connection is the Bronfman group, whose corporate center is Seagram's, and whose financial center is the Trizec group. Since Prohibition, Seagram's has handled the flow of smuggling into the United States.

Both Seagram's (and its old Prohibition rum-running partner, Hudson's Bay) are interlocked through a maze of contacts with all five of the big Canadian chartered banks: the Bank of Montreal, the Royal Bank of Canada, the Bank of Nova Scotia, the Toronto Dominion Bank, and the Canadian Imperial Bank of Commerce. Thus, the dirty money gleaned from the drug trade is conduited through these banks to points further south: The banks' offshore centers in the Caribbean, and from there the money makes its whirlpool round of worldwide laundering.

Canada's Big Five dominate all Canadian banking as fiercely as the British Big Four-Barclays, National Westminster, Lloyds, and Midlands-do in Britain. Unlike the United States, which has a relatively broadly spread base of regional banking, Canadian and British banking is run from the top by the institutions named. The Canadian institutions are barely distinguishable in their current practice from the British buccaneers who plied the Caribbean during the seventeenth century. Along with the British banks, which have numerous joint ventures with the Canadians-(for example, the Royal Bank operates in the Bahamas under the "RoyWest" cover in a joint venture with National Westminster-b-they are the core of the dirty money operations offshore of the United States.

In 1978, the Royal Bank of Canada had twenty-one affiliates in offshore banking and subsidiaries-more than any other bank in the world save Barclays Bank.

Royal Bank has the dirtiest reputation of any bank in the Caribbean. According to authoritative diplomatic sources, the Royal Bank of Canada directly ordered the Guyanese government to plant marijuana in order to raise foreign exchange income. In 1976, when Guyana went flat broke and applied to the International Monetary Fund for emergency assistance, Royal Bank of Canada officials met with senior members of the Guyana government. The Royal Bank insisted that Guyana transform its economy into a "cash crop" producer before it, or any other major bank, would issue loans. The Guyanese were desperate and did what they were told. Northwest Guyana, in consequence, became a major producer of marijuana for the North American market.

Second in the Caribbean offshore centers to the Royal Bank is the Bank of Nova Scotia.

... the Bank of Nova Scotia has been the number-one handler of flight capital out of Caribbean countries, especially troubled countries such as Jamaica. Apart from funds fleeing difficult political situations, much, if n pt most, of all illegal money transfers out of the Caribbean.

... Scotiabank's Jamaican trade is a particularly filthy bus ness, since it involves shifting funds earned in Jamaica by local criminals into safe havens. The cash side of the Jamaican operations, according to law enforcement sources, is done more with arms than drugs. Planes fly into Jamaica with loads of small arms, and take loads of marijuana out. The retail side in Jamaica is arms-selling. The ultimate cash proceeds of the selling chain are then laundered through Scotiabank.

The Bank of Nova Scotia's role in Canadian gold markets, is through its own trading operations and its interlock with the chairman of the second largest Canadian gold trader, Noranda Mines. According to informed New York gold market sources, a substantial proportion of Nova Scotia's flight capital operations are accomplished through illegal purchases of gold by Jamaican and other nationals.

The Canadian Institute of International Affairs - which has picked every Canadian foreign minister of this century - is not a Canadian institution, but the local branch of the British monarchy's most elite chivalric order. Canada's former Governor-General and chairman of the CIIA, Roland Michener, was also a Knight of St. John. A board member of the Italian branch of the Order of St. John, the Order of St. Lazarus, was a member of the CIIA's board, Henry R. Jackman. J.J. Jodrey, another board member, was also a Knight of St. John.

The Order of St. John respects the same chain of command as Canada's Governor-General and Privy Council: the Queen of England, who is the titular head of the Order, and the Queen's cousin, the Duke of Gloucester, who is Grand Prior of the Order. These men control the finances and logistics of Canada's economy. Through a series of "cutouts," like the Bronfman family, they also control much of the drug-running, the organized crime, and the political terrorism directed against the United States.

The sinister element that sets the British oligarchy apart from the popular image of the mafia family is its unshakable belief that it alone is fit to rule the world-the view reflected in Cecil Rhodes's 1877 Testament. Their religion is not the Anglican Christianity they publicly profess, but a hodgepodge of paganism, including satanic cults such as Theosophy and Rosicrucianism. The central, syncretic ideology of the oligarchy's inner cult life is the revived Egyptian drug cult, the myth of Isis and Osiris, the same anti-Christian cult that ran the Roman Empire. And like the ancient Isis-worshipping Egyptian dynasties, the British ruling family networks have maintained power for centuries by keeping the secrets of their intrigues within the family.

The Cult of Isis, dredged up in modern format, was the official ideology of leading British politicians, financiers, and literary figures during the previous century. The Isis cult also formed the core of Lord Palmerston's Scottish Rite of Freemasonry. Its great public exponent was the colonial secretary during the Second Opium War, Edward Bulwer-Lytton, the author of The Last Days of Pompeii, which first popularized the Isis cult, and the mentor of Cecil Rhodes's whole generation of British imperialists!

The Royal Institute of International Affairs was the "secret society" called for in Rhodes's will and is the body that provides the command structure for the drug trade. But the Royal Institute itself was founded by an even more secret group: the "Circle of Initiates... devoted to the extension of the British Empire," in the description of one of its historians.' The Circle of Initiates included Lord Milner; Cecil Rhodes, the founder of Britain's African mining empire; future prime minister Arthur Balfour; Albert Grey; and Lord Rothschild.

All these men celebrated forms of the Isis cult. Their woridview was largely designed by Bulwer-Lytton and his protégé John Ruskin.

The elite of the elite in Britain's secret dynastic life is Her Majesty's Most Venerable Order of St. John of Jerusalem-the "Christians who are not really Christians." ... the Knights' prominence in the centers of the world drug traffic: from the Hongkong and Shanghai Bank to the Canadian Pacific in Vancouver to Barclays Bank in London.

[Edward] Bulwer-Lytton directly influenced John Ruskin at Oxford University and established the lineage that leads-through such names as Miler and Rhodes-to the present-day Royal Institute of International Affairs. Ruskin's students included Miler, Rhodes, Albert Grey, and the future director of research for the RIIA, Arnold Toynbee.

Ruskin's inaugural speech at Oxford in 1870, inspired by Buiwer-Lytton, left such an impression on Cecil Rhodes that he carried a handwritten version of it with him until he died.

[John Ruskin's] speech - which set the tone for [Cecil] Rhodes's 1877 will - stated in part:

There is a destiny now possible to us - the highest ever set before a nation, to be accepted or refused. We are still undegenerate in race; a race mingled of the best northern blood... We are rich in an inheritance of honour, which it should be our daily thirst to increase with splendid avarice... [England] must found colonies as fast and as far as she is able ... seizing every piece of fruitful ground she can set her foot on, and teaching these her colonists that their ... first aim is to advance the power of England by land and sea...

The inheritors of the old British East India Company - the same British monarchy and some of the same banking houses - have launched the new Opium War just as they did the first: to loot nations, destroy them, and exalt the power of the Empire.

Today the International Monetary Fund (IMF) has replaced the British East India Company, and the Soviet Empire-inheriting the designs of the old Russian oligarchy to become the "Third and Final Rome"-has negotiated a partnership in Dope, Inc.

The year 1978 was a watershed for the operation to turn Ibero-America into a vast drug colony. By then, Trilateral Commission President Jimmy Carter had set the terms for the U.S. banking system to emulate the world's biggest dope banks, or be gobbled up by them.

In October 1979, Paul Adolph Volcker, the Carter-appointed Federal Reserve chief and intimate of the Trilateral Commission's David Rockefeller, legalized usury by forcing interest rates up to 20%. Ibero-America and the whole developing sector fell hostage to the dope bankers, As national debt quickly doubled and tripled, the IMF accelerated the process of recolonization.

Nations looking forward to entering the 21st century as developed countries, were forced to cancel their future. The great industrial projects that were the hope of the 1970s-nuclear energy, water management, ports, and other infrastructural projects basic to building healthy economies-were dismantled on orders from the IMF.

The great champions of "free enterprise," the followers of Friedrich von Hayek and Milton Friedman who argue the case for genocide much as Parson Malthus wrote the apologetics for the barbarities carried out by the British East India Company, all lauded the not-so-free dictatorship of the IMF over the entire Southern Hemisphere.

This same "free enterprise" dictator, the IMF, accelerated its campaign to legalize the black market economy, to "free" the narcodollars to infiltrate national banking systems, and to promote cultivation of "cash crops"-cannabis, coca, and poppies.

With the debt crisis of the 1980s, came the hopelessness of mass unemployment, chronic malnutrition, and economic marginalization of ever-larger sections of the Ibero-American population. This imposed a climate of cultural pessimism appropriate for the spread of drug addiction, terrorism, and social chaos.

Although the social scientists and anthropologists call the current terrorism and demoralization a "sociological phenomenon," it is the direct result of actions by the international oligarchic families, actions that are both premeditated and predictable. Look, for example, at the "1980s Project," a series of policy papers put out by the New York Council on Foreign Relations, in which the CFR proudly declared "controlled disintegration of the world economy is a legitimate objective for the 1980s." To the oligarchs, nations have become expendable.

The looting operations of the 1980s were as devastating as British eighteenth-century colonial methods. Capital flight, engineered collapse in Third World commodity prices, and brutal devaluations forced nation after nation to give up development projects and submit to recolonization.

... the United States, under the Kissinger influence, has time and again supplied the political muscle behind these policies of Paul Volcker and the IMF...

Chase Manhattan Bank chief David Rockefeller's bid for "mafia money" started in the mid-1960s, at the same time that Citibank cranked up its "international personal banking" group to manage illegal capital movements, and Bank of America bankrolled the Banco Ambrosiano in Italy. But not until David Rockefeller bought himself a U.S. administration in 1976, as the ancient European fondi installed themselves in Wall Street, did narcotics traffic start to become serious business for the world's biggest banks. Almost at the moment the Jimmy Carter administration took office, the Ibero-American dope traffic exploded into the big time, producing havoc in the distribution of cash throughout the Federal Reserve System by the end of 1978. After a mere two years of Jimmy Carter's White House, an extra $3.3 billion per year in cold cash was piling up in the Florida offices of the Federal Reserve, the $13 billion dope traffic had become Florida's largest industry, and American narcotics consumption had jumped to $100 billion per year EIR's [Executive Intelligence Report] estimates, perhaps triple the level of the early 1970s.

... Through G. William Miller's Treasury and Paul Voicker's Federal Reserve, the United States backed the International Monetary Fund's campaign to force Ibero-America to produce dope to pay its debts, and with redoubled energy after the 1979 oil price increase threw Third World debtors into penury.

Volcker had been Rockefeller's vice president for strategic planning at the time the "mafia money" memoranda circulated in 1966, and Chase went begging to the likes of Y.K. Pao and the HongShang Bank for a cut in the Hong Kong dirty money pool. Now the Trilateral Commission, the Rockefeller front organization which had nominated its mascot Jimmy Carter for the presidency, hit Ibero-America from all sides. Chase's international advisory board Chairman Henry Kissinger, also the Trilateral Commission's chairman, set in motion the Caribbean policy which culminated in the 1980 marijuana coup in Jamaica, with the backing of Trilateral Commission member Cyrus Vance's Department of State.

The International Monetary Fund is the instrument by which the United States was forestalled from pursuing Franklin Roosevelt's desire for global industrial development following the Second World War. Lord Keynes conceived it as an expansion of the Bank for International Settlements, founded in 1931 by the same representatives of the fondi whose descendants now sit on the boards of the Assicurazioni Generali and the Riunione Adriatica di Sicurtà. And the Bank for International Settlements was conceived in 1922 in Genoa at the Palazzo San Giorgio, the ancient headquarters of the Doria and Giustinian banking operation, the Cassa San Giorgio. The Genoese and their Venetian partners, militarily insecure in the northern Italy of the late eighteenth century, created modern Switzerland as a bank with an army attached ... Switzerland remains the fondi's strongbox. There the Bank for International Settlements has been headquartered since its founding in 1930.

The great family fondi which stand behind the BIS supervise the traffic in narcotics at the ground level.

By 1978, the dope economy was the stated policy of the IMF. John Holdson, a senior official for Latin America in the World Bank's International Trade and Monetary Flows department, told Executive Intelligence Review, "I know the coca industry there is highly advantageous to producers. In fact, from their point of view, they simply couldn't find a better product. Its advantages are that no elaborate technology is required, no hybrid seeds, and land and climate are perfect."

A Colombia specialist at the International Monetary Fund put it this way: "From an economic viewpoint, marijuana is just a crop, like any other. It brings in foreign exchange, and provides income for the peasants. Legality is a relative concept. In a few years, marijuana may become legal anyway."

An international banker in New York explained in 1978, "Coffee prices are simply too unstable, always fluctuating on the world market, you know. Drugs, on the other hand, provide a stable source of income at all times. With coffee prices like they are, Colombia will never get its development going, can't make plans, like the oil producers can. I happen to know that the World Bank has been pressuring some Latin American countries to find some way of statistically accounting for their contraband flows."

In an interview with EIR, the former foreign minister of Guyana, Frederick Wills, explained, "The countries hope that, by getting the IMF seal of approval, this will open the gates for credit from other countries and private banks. But the IMF seal of approval requires successful acceptance of the IMF program.

And since you didn't succeed, the flow of funds from money markets and banks is dried up. This means that, first of all, the government ministers started to think, 'What export drive could we have which could realize a quick cash flow, to stem this balance of payments gap?' There is only one commodity that satisfies that requirement: dope, heroin, marijuana.

"In several countries," Wills continued, "officials from the IMF and the Bretton Woods system would come down and say 'your future lies in agriculture.' But in agriculture you have the following problems: High technology is expensive, that increases your import bill. So you have to use the 'appropriate technology' that you do have to produce those goods which can satisfy your local market and a bit for export. You cannot compete with the great agricultural countries like Argentina, Canada, the United States, and Australia. Therefore, the kind of crop you have to produce for export has to be one in which you have the edge and they don't, and that's dope."

After four years of International Monetary Fund control, Jamaica's marijuana income is conservatively estimated at $3.5 billion per year, more than the country's Gross National Product in 1980, when the International Monetary Fund put Edward Seaga into office.

On the CBS-TV program "Face the Nation" on November 23, 1980, [Jamaican Prime Minister Edward] Seaga stated that marijuana "has almost been the lifeline economically to providing dollars and foreign exchange" to Jamaica. Shortly before, had told the Washington Post:

Regardless of whether we want it or not, the industry as such is here to stay. It is just not possible for it to be wiped out, and if it is here to stay, then we have to make up our mind from that point as to how to best deal with it... the question of legalizing it so as to bring the flow of several hundred million dollars in this parallel market through official channels.

... the Kissinger group in the State Department and the International Monetary Fund installed Seaga for the explicit purpose of maximizing Jamaica's dope revenue.

[Under Jamaican Prime Minister Edward Seaga] the entire basis of the [Jamaican] economy shifted to pot [in 1984] ... Canada's Bank of Nova Scotia, later cited by the President's Commission on Organized Crime as a major dirty money conduit, handled the transfer of cash from marijuana sales, and Mocatta Metals in New York City provided precious metals for cash-laundering purposes.

The Report of [Henry] Kissinger's National Bipartisan Commission on Central America, released January 21, 1984, is an undisguised formula for gunboat diplomacy on behalf of Dope, Inc.

... according to the Kissinger report, U.S. muscle will enforce the Hong Kong model upon the Caribbean. The economy of the region is to be "restructured" to fit the model of dirty money laundromats like "Hong Kong, Singapore, and others." Private sector "initiative" must replace government "as the engine of growth." United Brands - whose ships carried a substantial portion of the cocaine reaching the U.S.A. during the 1970s ... is cited as a "model employer and model citizen".

Peru, another early victim of the IMF, meanwhile lost 70% of its national economy to the so-called underground since accepting IMF conditionalities in 1976. General Francisco Morales Bermüdez, whose coup against President Velasco began Peru's descent into the financial underworld, complied with IMF demands in 1979 to open up Peru's interior to "foreign investment," as a means of attracting capital to the bankrupt country; the result was that the international narcotics traffic gained access to huge tracts of land for coca leaf production. Peru's Gross National Product is only $20 billion; $6 billion of narcotics revenues (a tiny fraction of what Peruvian cocaine sells for abroad) make narcotics the dominant industry in the national economy.

Since the 1858 Sepoy Rebellion gave a bad name to Britain's East India Company, the Company's sponsors have preferred to spin off the dirtier side of its operations into separable entities which may be disowned when necessary. For Asia, the new incarnation of "John Company" became the Hongkong and Shanghai Bank, still the central bank for the world opium traffic. For Ibero-America, it became the New Orleans and Boston-based United Fruit Company. United Fruit, later United Brands, was believed by American intelligence officials to be the principal mechanism through which cocaine was transported into the United States during the 1970s.

The sometimes bewildering change of faces at United Fruit from the old, odd alliance of New Orleans gangsters and Boston Brahmins described in the historical section of this book, to the Max Fisher-Carl Lindner combination now at the helm-does not really disguise a long-term continuity of operations.

It represents a bridge between apparently respectable finance and a ground-level ability to conduct coups d'etat, arrange political assassinations, farm and market large quantities of narcotics, and launder the resulting cash flow back into the apparently respectable channels of banking. The corporate form of United Fruit as such is a "black box" through which the complex requirements of this activity may be brought together.

[Carl] Lindner took over United Brands in February 1975, when its chairman Eli Black walked out of his 44th-floor office window in New York City for unexplained reasons. Within two months, Detroit "ex-"mobster Max Fisher was the new acting chairman of the company; Lindner, Fisher and their immediate associates had garnered 48% of the UB stock. Fisher's appointment was sponsored by two men: So! Linowitz and Donald R. Gant, a Goldman Sachs partner and Henry Kissinger associate. Linowitz, who later became the Carter administration's special envoy for Panama Canal treaty negotiations, as well as the principal promoter of the dope economy in the Caribbean, was a -director as well of Marine Midland Bank, instrumental in promoting Marine Midland's merger with the HongShang.

It is hard to further blacken United Brands' reputation in Ibero-America. Its role in the 1954 Castillo Armas coup in Guatemala, where United Brands financed an expeditionary force to overthrow the Arbenz government when it tried to expropriate United Fruit Company lands, is well documented.


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