Spitfire List Web site and blog of anti-fascist researcher and radio personality Dave Emory.

For The Record  

FTR #1095 The Destabilization of China, Part 6: Asian Deep Politics

WFMU-FM is pod­cast­ing For The Record–You can sub­scribe to the pod­cast HERE.

You can sub­scribe to e‑mail alerts from Spitfirelist.com HERE.

You can sub­scribe to RSS feed from Spitfirelist.com HERE.

You can sub­scribe to the com­ments made on pro­grams and posts–an excel­lent source of infor­ma­tion in, and of, itself, HERE.

Mr. Emory’s entire life’s work is avail­able on a 32GB flash dri­ve, avail­able for a con­tri­bu­tion of $65.00 or more (to KFJC). Click Here to obtain Dav­e’s 40+ years’ work.

Please con­sid­er sup­port­ing THE WORK DAVE EMORY DOES.

This pro­gram was record­ed in one, 60-minute seg­ment.

Intro­duc­tion: In this pro­gram we present some of the deep polit­i­cal Asian his­to­ry that bears on Chi­nese his­to­ry and pol­i­tics. In par­tic­u­lar, the harm done to Chi­na by Gen­er­alis­si­mo Chi­ang Kai-shek’s drug-deal­ing Kuom­intang gov­ern­ment, its col­lab­o­ra­tion with the bru­tal Japan­ese occu­piers of Manchuria, as well as the Unit­ed States is impor­tant in under­stand­ing the Chi­nese polit­i­cal and his­tor­i­cal out­look.

In turn, the deep eco­nom­ic, polit­i­cal and mil­i­tary rela­tion­ship between the Japan­ese fas­cists and the U.S. is to be fac­tored in to any under­stand­ing of how the Chi­nese view this coun­try and the West.

In that con­text, we do NOT think Chi­na’s present gov­ern­ment will go down eas­i­ly in the face of an obvi­ous desta­bi­liza­tion effort by the U.S. and the West.

In addi­tion to the Euro­pean col­o­niza­tion of Chi­na and Britain’s vio­lent impo­si­tion of the opi­um drug trade through the Opi­um Wars, Chi­na’s polit­i­cal and his­tor­i­cal mem­o­ry is vivid­ly ani­mat­ed by the drug-financed fas­cist dic­ta­tor­ship of Nation­al­ist Chi­nese Gen­er­alis­si­mo Chi­ang Kai-shek. Dubbed “the Peanut” by Gen­er­al Joseph Stil­well dur­ing World War II, Chi­ang was com­pared by Stil­well (the chief Amer­i­can mil­i­tary advis­er and liai­son to the Kuom­intang forces dur­ing World War II) to Mus­soli­ni.

Chi­ang’s entire gov­ern­ment and bru­tal nation­al secu­ri­ty appa­ra­tus rest­ed on the foun­da­tion of the nar­cotics traf­fic, as was well known by the US Com­mis­sion­er Bureau of Nar­cotics, Har­ry Anslinger.

Key points of dis­cus­sion and analy­sis of this rela­tion­ship include: The deci­sive role of the Green Gang of Shang­hai crime lord Du (some­times ‘Tu”) Yue-sheng in both financ­ing Chi­ang’s forces and sup­ply­ing mus­cle and intel­li­gence to Tai Li, Chi­ang’s intel­li­gence chief and inte­ri­or min­is­ter, nick­named “The Himm­ler of Chi­na;” the impor­tant role of Chi­ang’s drug traf­fic in sup­ply­ing Amer­i­can t’ongs who, in turned, sup­plied the Mafia with their nar­cotics; the role of Chi­ang’s finance min­is­ter as Du Yue-sheng’s pro­tec­tor; the col­lab­o­ra­tion of Du and Chaing Kai-shek’s Kuom­intang appa­ra­tus with the Japan­ese occu­pa­tion gov­ern­ment of Manchuria in the nar­cotics traf­fic; the role of Chaing’s head of Nar­cotics Con­trol in sup­ply­ing Chi­nese offi­cials with drugs; the role of the Super­in­ten­dent of Mar­itime Cus­toms in Shang­hai in super­vis­ing the traf­fick­ing of drugs to the U.S.; Du Yueh-sheng’s flight to Hong Kong after the Japan­ese occu­pa­tion of Shang­hai; Du’s col­lab­o­ra­tion with Hong Kong-based British financiers in sell­ing drugs to the Chi­nese pop­u­la­tion; the delib­er­ate decep­tion on the part of Anslinger and king­pins in the US Chi­na Lob­by, who know­ing­ly mis­led the Amer­i­can pub­lic by blam­ing the U.S. drug traf­fic on the Com­mu­nist Chi­nese; the nar­cotics kick­backs to U.S. Chi­na Lob­by fig­ures by Chi­ang’s dope traf­fick­ing infra­struc­ture; the over­lap of the Kuom­intang dope trade with arms sales by Chi­na Lob­by lumi­nar­ies; the sup­port of the CIA for Chi­ang’s nar­cotics traf­fic; the destruc­tion of the career of For­eign Ser­vice offi­cer John Ser­vice, who not­ed that “the Nation­al­ists were total­ly depen­dent on opi­um and ‘inca­pable of solv­ing Chi­na’s prob­lems;’ ” the cen­tral role of Tai Li’s agents in the U.S. in fram­ing John Ser­vice.

Sup­ple­men­tal infor­ma­tion about these top­ics is con­tained in AFA #11 and AFA #24.

It is impos­si­ble to under­stand World War II and the glob­al and eco­nom­ic polit­i­cal land­scape that emerged from it with­out digest­ing the vital­ly impor­tant book Gold War­riors by Ster­ling and Peg­gy Sea­grave.

Cov­er­ing the Japan­ese equiv­a­lent of the Bor­mann flight cap­i­tal net­work, the vol­ume is a hero­ic, mas­ter­ful analy­sis and pen­e­tra­tion of the Asian wing of the car­tel sys­tem that spawned fas­cism, as well as the real­i­ties of the post-World War II eco­nom­ic land­scape. (FTR #‘s 427, 428, 446, 451, 501, 509, 688689 deal with the sub­ject of the Gold­en Lily pro­gram suc­cess­ful­ly imple­ment­ed by the Japan­ese to loot Asia.)

An inci­sive, elo­quent review and encap­su­la­tion of the book is pro­vid­ed by Doug Valen­tine, pro­vid­ing fur­ther insight into the polit­i­cal and his­tor­i­cal mem­o­ry of the Chi­nese gov­ern­ment and result­ing stance toward any pres­sure to be mount­ed against that nation by the U.S. and the West.

Of par­tic­u­lar note is the detailed analy­sis of the Japan­ese devel­op­ment of occu­pied Manchuria as an epi­cen­ter of the opi­um traf­fic with which to enrich their oper­a­tions and to help sub­ju­gate the Chi­nese. Chi­nese sen­si­tiv­i­ty to the Japan­ese, Kuom­intang, Amer­i­can and British roles in using drugs to enslave the Chi­nese peo­ple is very much in the fore­front of Japan­ese polit­i­cal con­scious­ness.

” . . . . .They [the Japan­ese] build roads and cre­ate indus­tries and, more impor­tant­ly, they work with cor­rupt war­lords and Chi­nese gang­sters asso­ci­at­ed with Chi­ang Kai-shek’s Kuom­intang Par­ty to trans­form Manchuria into a vast pop­py field. By 1937 the Japan­ese and their gang­ster and Kuom­intang asso­ciates are respon­si­ble for 90% of the world’s illic­it nar­cotics. They turn Manchu emper­or Pu Yi into an addict, and open thou­sands of opi­um dens as a way of sup­press­ing the Chi­nese. . . .”

Far from being a periph­er­al polit­i­cal and eco­nom­ic con­sid­er­a­tion; the Gold­en Lily plun­der is fun­da­men­tal to post­war West­ern real­i­ty.

” . . . . The Sea­graves con­clude their excit­ing and excel­lent book by tak­ing us down the Mon­ey Trail, and explain­ing, in layman’s terms, how the Gold War­riors have been able to cov­er their tracks. Emper­or Hiro­hi­to, for exam­ple, worked direct­ly with Pope Pius XII to laun­der mon­ey through the Vat­i­can bank. In anoth­er instance, Japan’s Min­istry of Finance pro­duced gold cer­tifi­cates that were slight­ly dif­fer­ent than ordi­nary Japan­ese bonds. The Sea­graves inter­view per­sons defraud­ed in this scam, and oth­er scams involv­ing the Union Bank of Switzer­land and Citibank. . . . ”

” . . . . the banks that main­tain the US government’s stolen gold are above the law, and if they stonewall long enough, any­one try­ing to sue them will even­tu­al­ly fade away. The Sea­graves asked the Trea­sury Depart­ment, Defense Depart­ment, and the CIA for records on Yamashita’s gold in 1987, but were told the records were exempt from release. Dur­ing the 1990s, the records mys­te­ri­ous­ly went miss­ing. Oth­er records were destroyed in what the Sea­graves caus­ti­cal­ly call ‘his­to­ry laun­der­ing.’ . . . . .”

Key Points of Analy­sis and Dis­cus­sion Include: Dis­cus­sion of the war crimes com­mit­ted by the Japan­ese against the Chi­nese; the roles of the Japan­ese army, the Japan­ese roy­al fam­i­ly and yakuza gang­ster Kodama Yoshio (lat­er the CIA’s top con­tact in Japan and a key offi­cial with the Uni­fi­ca­tion Church) in extract­ing the liq­uid wealth of Chi­na; the restora­tion of the Japan­ese fas­cists in the “new,” post­war Japan­ese gov­ern­ment by Dou­glas MacArthur’s occu­pa­tion forces; the fusion of the Gold­en Lily loot with Nazi World War II plun­der to form the Black Eagle Trust; the use of the Gold­en Lily plun­der to finance funds to rein­force the renascent fas­cists in Japan, to finance U.S. covert oper­a­tions in the post­war peri­od and to sup­press polit­i­cal dis­si­dence in Japan; the use of the M‑Fund to finance the Japan­ese Lib­er­al Demo­c­ra­t­ic Par­ty and Richard Nixon’s trans­fer of con­trol of that fund to the Japan­ese gov­ern­ment in exchange for clan­des­tine finan­cial help in his 1960 elec­tion cam­paign; the use of Gold­en Lily loot by the U.S. to pur­chase the sup­port of Pacif­ic ally nations for the Viet­nam War; the use of Gold­en Lily trea­sure by Philip­pine dic­ta­tor Fer­di­nand Mar­cos; the sup­pres­sion and crim­i­nal pros­e­cu­tion of indi­vid­u­als attempt­ing to pen­e­trate the elite, selec­tive use of Gold­en Lily gold by the world’s large banks.

We con­clude by high­light­ing Fred J. Cook’s ana­lyt­i­cal account of the McCarthy peri­od, The Night­mare Decade. One of the focal points of Cook’s book is McCarthy’s theme that State Depart­ment [Com­mu­nist] treach­ery had “lost” Chi­na to Mao and his forces.

Exploit­ing the meme that “pinko” State Depart­ment offi­cials were respon­si­ble for Mao’s ascen­dance, McCarthy and his team suc­cess­ful­ly purged the State Depart­ment of offi­cials whose out­look on Chi­ang Kai-shek was real­is­tic.

The fate of John Service–described in the excerpt of The CIA as Orga­nized Crime–illus­trates this kind of activ­i­ty.

In FTR #s 932 and 933 (among oth­er pro­grams), we not­ed the piv­otal influ­ence of Joe McCarthy’s right-hand man Roy Cohn on the pro­fes­sion­al devel­op­ment of Don­ald Trump. We won­der what influ­ence Cohn and the McCarthy lega­cy may have had on Trump’s pol­i­cy toward Chi­na.

Aside from the airy pre­sump­tion that Chi­na was “ours” to “lose,” McCarthy’s the­sis ignored the effects of U.S. pol­i­cy in that coun­try before, dur­ing and after, World War II. (This trans­gres­sion is, of course, sup­ple­men­tal to Tail­gun­ner Joe’s fab­ri­ca­tion of evi­dence against those he tar­get­ed.)

In addi­tion to sup­port for Chi­ang Kai-Shek, whom Gen­er­al Joseph Stil­well com­pared to Mus­soli­ni, U.S. pol­i­cy of using scores of thou­sands of Japan­ese sol­diers as anti-Com­mu­nist com­bat­ants was loath­some to the Chi­nese pop­u­la­tion, who had felt the full mea­sure of Japan­ese atroc­i­ty dur­ing years of war­fare.

Leaf­ing through Night­mare Decade for the first time in years, we came across a pas­sage read into the record in AFA #11.

More than 16 months after V‑J Day (the offi­cial con­clu­sion of the hos­til­i­ties of World War II in Asia) the U.S. was coun­te­nanc­ing the use of 80,000 Japan­ese troops (rough­ly eight divi­sions) as anti-Com­mu­nist com­bat­ants in east­ern and north­west­ern Manchuria alone!

Hav­ing been raised on Vic­to­ry at Sea and sim­i­lar fare, this pas­sage is yet anoth­er reminder that–70 + years or so after V‑J Day–“we’re not in Kansas any more, Toto.”

In ret­ro­spect, we nev­er were.

For more on the sub­ject of the Japan­ese fas­cism, see–among oth­er pro­grams–FTR #‘s 905, 969, 970.

Pro­gram High­lights Include: Brief dis­cus­sion and overview of an arti­cle read in our pre­vi­ous pro­gram con­cern­ing HSBC and the bank’s his­tor­i­cal links to laun­der­ing nar­cotics mon­ey and jihadist financ­ing; the use of the racist term “shi­na” by the Hong Kong protesters–a term that had its gen­e­sis in the Sino-Japan­ese war.

1.In addi­tion to the Euro­pean col­o­niza­tion of Chi­na and Britain’s vio­lent impo­si­tion of the opi­um drug trade through the Opi­um Wars, Chi­na’s polit­i­cal and his­tor­i­cal mem­o­ry is vivid­ly ani­mat­ed by the drug-financed fas­cist dic­ta­tor­ship of Nation­al­ist Chi­nese Gen­er­alis­si­mo Chi­ang Kai-shek. Dubbed “the Peanut” by Gen­er­al Joseph Stil­well dur­ing World War II, Chi­ang was com­pared by Stil­well (the chief Amer­i­can mil­i­tary advis­er and liai­son to the Kuom­intang forces dur­ing World War II) to Mus­soli­ni.

Chi­ang’s entire gov­ern­ment and bru­tal nation­al secu­ri­ty appa­ra­tus rest­ed on the foun­da­tion of the nar­cotics traf­fic, as was well known by the US Com­mis­sion­er Bureau of Nar­cotics, Har­ry Anslinger.

Key points of dis­cus­sion and analy­sis of this rela­tion­ship include: The deci­sive role of the Green Gang of Shang­hai crime lord Du (some­times ‘Tu”) Yue-sheng in both financ­ing Chi­ang’s forces and sup­ply­ing mus­cle and intel­li­gence to Tai Li, Chi­ang’s intel­li­gence chief and inte­ri­or min­is­ter, nick­named “The Himm­ler of Chi­na;” the impor­tant role of Chi­ang’s drug traf­fic in sup­ply­ing Amer­i­can t’ongs who, in turned, sup­plied the Mafia with their nar­cotics; the role of Chi­ang’s finance min­is­ter as Du Yue-sheng’s pro­tec­tor; the col­lab­o­ra­tion of Du and Chaing Kai-shek’s Kuom­intang appa­ra­tus with the Japan­ese occu­pa­tion gov­ern­ment of Manchuria in the nar­cotics traf­fic; the role of Chaing’s head of Nar­cotics Con­trol in sup­ply­ing Chi­nese offi­cials with drugs; the role of the Super­in­ten­dent of Mar­itime Cus­toms in Shang­hai in super­vis­ing the traf­fick­ing of drugs to the U.S.; Du Yueh-sheng’s flight to Hong Kong after the Japan­ese occu­pa­tion of Shang­hai; Du’s col­lab­o­ra­tion with Hong Kong-based British financiers in sell­ing drugs to the Chi­nese pop­u­la­tion; the delib­er­ate decep­tion on the part of Anslinger and king­pins in the US Chi­na Lob­by, who know­ing­ly mis­led the Amer­i­can pub­lic by blam­ing the U.S. drug traf­fic on the Com­mu­nist Chi­nese; the nar­cotics kick­backs to U.S. Chi­na Lob­by fig­ures by Chi­ang’s dope traf­fick­ing infra­struc­ture; the over­lap of the Kuom­intang dope trade with arms sales by Chi­na Lob­by lumi­nar­ies; the sup­port of the CIA for Chi­ang’s nar­cotics traf­fic; the destruc­tion of the career of For­eign Ser­vice offi­cer John Ser­vice, who not­ed that “the Nation­al­ists were total­ly depen­dent on opi­um and ‘inca­pable of solv­ing Chi­na’s prob­lems;’ ” the cen­tral role of Tai Li’s agents in the U.S. in fram­ing John Ser­vice.

Sup­ple­men­tal infor­ma­tion about these top­ics is con­tained in AFA #11 and AFA #24.

The CIA as Orga­nized Crime by Dou­glas Valen­tine; Clar­i­ty Press [SC]; Copy­right 2017 by Dou­glas Valen­tine; ISBN 978–0‑9972870–2‑8; pp. 222–224.

In the 1920s, the US threw its weight behind Chi­ang Kai-shek, whose Kuom­intang Par­ty was fight­ing the Com­mu­nists and sev­er­al oth­er war­lords for con­trol of Chi­na. The US was com­pet­ing with the oth­er colo­nial nations for con­trol of Chi­na, which hd a cheap labor force and rep­re­sent­ed bil­lions in prof­its for US cor­po­ra­tions and investors.The prob­lem was that the Kuom­intang  sup­port­ed itself through the opi­um trade. It’s well doc­u­ment­ed in the  dipo­mat­ic cables between the US gov­ern­ment and its rep­re­sen­ta­tives in Chi­na. His­to­ri­ans Kinder and Walk­er said the Com­mis­sion­er of the Bureau of Nar­cotics, Har­ry Anslinger, “clear­ly knew about the ties between Chi­ang and  opi­um deal­ers.”

Anslinger knew that Shang­hai was “the prime pro­duc­er and exporter to the illic­it world drug mar­kets,” through a syn­di­cate con­trolled by Du Yue-sheng, a crime lord who facil­i­tat­ed Chi­ang’s bloody ascent to pow­er in 1927. As ear­ly as 1932, Anslinger knew that Chi­ang’s finance min­is­ter was Du’s pro­tec­tor. He’d had evi­dence since 1929 that Amer­i­can t’ongs were receiv­ing Kuom­intang nar­cotics and dis­trib­ut­ing it to the Mafia. Mid­dle­men worked with opi­um mer­chants, gangsers like Du, Japan­ese occu­pa­tion forces in Manchuria, and Dr. Lans­ing Ling, “who sup­plied nar­cotics to Chi­nese offi­cials trav­el­ing abroad.” In 1938, Chi­ang Kai-shek appoint­ed Dr. Ling head of his Nar­cot­ic Con­trol Depart­ment.

In Octo­ber 1934, the Trea­sury attache in Shang­hai “sub­mit­ted reports impli­cat­ing Chi­ang Kai-shek in the hero­in trade to North Amer­i­ca.” In 1935, the attache report­ed that the Super­in­ten­dent of Mar­itime Cus­toms in Shang­hai was “act­ing as agent for Chi­ang Kai-shek in arrang­ing for the prepa­ra­tion and ship­ment of the stuff to the Unit­ed States.”

These reports reached Anslinger’s desk, so he knew which KMT offi­cials and trade mis­sions were deliv­er­ing dope to Amer­i­can t’ongs and which Amer­i­can mafia drug rings were buy­ing it. He knew the t’ongs were kick­ing back a per­cent­age of the prof­its to finance Chi­ang’s regime.

After Japan­ese forces Shang­hai in August 1937, Anslinger was even less will­ing to deal hon­est­ly with the sit­u­a­tion. By then, Du was sit­ting on Shang­hai’s Munic­i­pal Board with William J. Keswick. Du found sanc­tu­ary in Hong Kong, where he was wel­comed by a cabal of free-trad­ing British colo­nial­ists whose ship­ping and bank­ing com­pa­nies earned huge rev­enues by allow­ing Du to push his drugs on the hap­less Chi­nese.The rev­enues were tru­ly immense: accord­ing to Colonel Joseph Stil­well, the US mil­i­tary attache in Chi­na, in 1935 there were “eight mil­lion chi­nese hero­in and mor­phine addicts and anoth­er 72 mil­lion Chi­nese opi­um addicts.”

Anslinger tried to min­i­mize the prob­lem by lying and say­ing that Amer­i­cans were not affect­ed.  But the final deci­sions were made by his boss­es in Wash­ing­ton, and from their nation­al secu­ri­ty per­spec­tive, the prof­its enabled the Kuom­intang to pur­chase $31 mil­lion worth of fight­er planes from arms deal­er William Paw­ley to fight the Com­mu­niss, and that trumped any moral dilem­mas about trad­ing with the Japan­ese or get­ting Amer­i­cans addict­ed.

It’s all doc­u­ment­ed. Check the sources I cite in my books. Plus, US Con­gress­men and Sen­a­tors in the Chi­na Lob­by were prof­it­ing from the guns for drugs busi­ness too. They got kick­backs in the form of cam­paign funds and in exchange, they looked away as long as Anslinger told them the dope stayed over­seas. After 1949, the Chi­na Lob­by manip­u­lat­ed pub­lic hear­ings and Anslinger cooked the books to make sure that the Peo­ples Repub­lic was blamed for all nar­cotics com­ing out of the Far East. Every­one made mon­ey and after 1947 the oper­a­tion was run out of Tai­wan, with CIA assis­tance.

The US gov­er­rn­men­t’s involve­ment in the illic­it drug busi­ness was insti­tu­tion­al­ized dur­ing World War Two. While serv­ing on Gen­er­al Joseph Stil­well’s staff in 1944, For­eign Ser­vice offi­cer John Ser­vice report­ed from Kun­ming, the city where the Fly­ing Tigers and OSS were head­quar­tered, that the Nation­al­ists were total­ly depen­dent on opi­um and “inca­pable of solv­ing Chi­na’s prob­lems.”

Ser­vice’s reports con­ributed to the Tru­man Admin­is­tra­tion’s deci­sion not to come to Chi­ang’s res­cue at the end of the war. In retal­i­a­tion, Chaing’s intel­li­gence chief, Tai Li, had his agents in Amer­i­ca accuse Ser­vice of leak­ing the Kuom­intang’s bat­tle plans to a left­ist newslet­ter. Ser­vice was arrest­ed. After Ser­vice was cleared of any wrong­do­ing, the Chi­na Lob­by per­sist­ed in attack­ing his char­ac­ter for the next six years. He was sub­ject­ed to eight loy­al­ty hear­ings, and dis­missed from the State Depart­ment in 1951.

Ser­vice’s per­se­cu­tion was fair warn­ing that any­one link­ing the Nation­al­ist Chi­nese to drug smug­gling would, at a min­i­mum, be brand­ed a Com­mu­nist sym­pa­thiz­er and his rep­u­ta­tion ruined. That is how the US drug oper­a­tion is still pro­tect­ed today, although secu­ri­ty for the oper­a­tion has improved and whistle­blow­ers are smeared in oth­er ways.

After World War Two, the busi­ness of man­ag­ing the gov­ern­men­t’s involve­ment in the illic­it nar­cotics trade was giv­en to the CIA, because it could covert­ly con­duct sup­port oper­a­tions for, among oth­ers, the Nation­al­ist Chi­nese in Tai­wan. The CIA also relo­cat­ed and sup­plied one of Chi­ang’s armies to Bur­ma. This KMT army sup­port­ed itself through the opi­um trade and the CIA flew the opi­um to places where it was con­vert­ed to hero­in and sold to the Mafa. The oth­er bureaucracies—the mil­i­tary and the Depart­ments of State, Jus­tice and Treasury—provided pro­tec­tion along with the Chi­na Lob­by con­gress­men and sen­a­tors who con­trolled the lit­tle infor­ma­tion that was made pub­lic. . . .

2. It is impos­si­ble to under­stand World War II and the glob­al and eco­nom­ic polit­i­cal land­scape that emerged from it with­out digest­ing the vital­ly impor­tant book Gold War­riors by Ster­ling and Peg­gy Sea­grave.

Cov­er­ing the Japan­ese equiv­a­lent of the Bor­mann flight cap­i­tal net­work, the vol­ume is a hero­ic, mas­ter­ful analy­sis and pen­e­tra­tion of the Asian wing of the car­tel sys­tem that spawned fas­cism, as well as the real­i­ties of the post-World War II eco­nom­ic land­scape. (FTR #‘s 427, 428, 446, 451, 501, 509, 688689 deal with the sub­ject of the Gold­en Lily pro­gram suc­cess­ful­ly imple­ment­ed by the Japan­ese to loot Asia.)

An inci­sive, elo­quent review and encap­su­la­tion of the book is pro­vid­ed by Doug Valen­tine, pro­vid­ing fur­ther insight into the polit­i­cal and his­tor­i­cal mem­o­ry of the Chi­nese gov­ern­ment and result­ing stance toward any pres­sure to be mount­ed against that nation by the U.S. and the West.

Of par­tic­u­lar note is the detailed analy­sis of the Japan­ese devel­op­ment of occu­pied Manchuria as an epi­cen­ter of the opi­um traf­fic with which to enrich their oper­a­tions and to help sub­ju­gate the Chi­nese. Chi­nese sen­si­tiv­i­ty to the Japan­ese, Kuom­intang, Amer­i­can and British roles in using drugs to enslave the Chi­nese peo­ple is very much in the fore­front of Japan­ese polit­i­cal con­scious­ness.

” . . . . .They [the Japan­ese] build roads and cre­ate indus­tries and, more impor­tant­ly, they work with cor­rupt war­lords and Chi­nese gang­sters asso­ci­at­ed with Chi­ang Kai-shek’s Kuom­intang Par­ty to trans­form Manchuria into a vast pop­py field. By 1937 the Japan­ese and their gang­ster and Kuom­intang asso­ciates are respon­si­ble for 90% of the world’s illic­it nar­cotics. They turn Manchu emper­or Pu Yi into an addict, and open thou­sands of opi­um dens as a way of sup­press­ing the Chi­nese. . . .”

Far from being a periph­er­al polit­i­cal and eco­nom­ic con­sid­er­a­tion; the Gold­en Lily plun­der is fun­da­men­tal to post­war West­ern real­i­ty.

” . . . . The Sea­graves con­clude their excit­ing and excel­lent book by tak­ing us down the Mon­ey Trail, and explain­ing, in layman’s terms, how the Gold War­riors have been able to cov­er their tracks. Emper­or Hiro­hi­to, for exam­ple, worked direct­ly with Pope Pius XII to laun­der mon­ey through the Vat­i­can bank. In anoth­er instance, Japan’s Min­istry of Finance pro­duced gold cer­tifi­cates that were slight­ly dif­fer­ent than ordi­nary Japan­ese bonds. The Sea­graves inter­view per­sons defraud­ed in this scam, and oth­er scams involv­ing the Union Bank of Switzer­land and Citibank. . . . ”

” . . . . the banks that main­tain the US government’s stolen gold are above the law, and if they stonewall long enough, any­one try­ing to sue them will even­tu­al­ly fade away. The Sea­graves asked the Trea­sury Depart­ment, Defense Depart­ment, and the CIA for records on Yamashita’s gold in 1987, but were told the records were exempt from release. Dur­ing the 1990s, the records mys­te­ri­ous­ly went miss­ing. Oth­er records were destroyed in what the Sea­graves caus­ti­cal­ly call ‘his­to­ry laun­der­ing.’ . . . . .”

Key Points of Analy­sis and Dis­cus­sion Include: Dis­cus­sion of the war crimes com­mit­ted by the Japan­ese against the Chi­nese; the roles of the Japan­ese army, the Japan­ese roy­al fam­i­ly and yakuza gang­ster Kodama Yoshio (lat­er the CIA’s top con­tact in Japan and a key offi­cial with the Uni­fi­ca­tion Church) in extract­ing the liq­uid wealth of Chi­na; the restora­tion of the Japan­ese fas­cists in the “new,” post­war Japan­ese gov­ern­ment by Dou­glas MacArthur’s occu­pa­tion forces; the fusion of the Gold­en Lily loot with Nazi World War II plun­der to form the Black Eagle Trust; the use of the Gold­en Lily plun­der to finance funds to rein­force the renascent fas­cists in Japan, to finance U.S. covert oper­a­tions in the post­war peri­od and to sup­press polit­i­cal dis­si­dence in Japan; the use of the M‑Fund to finance the Japan­ese Lib­er­al Demo­c­ra­t­ic Par­ty and Richard Nixon’s trans­fer of con­trol of that fund to the Japan­ese gov­ern­ment in exchange for clan­des­tine finan­cial help in his 1960 elec­tion cam­paign; the use of Gold­en Lily loot by the U.S. to pur­chase the sup­port of Pacif­ic ally nations for the Viet­nam War; the use of Gold­en Lily trea­sure by Philip­pine dic­ta­tor Fer­di­nand Mar­cos; the sup­pres­sion and crim­i­nal pros­e­cu­tion of indi­vid­u­als attempt­ing to pen­e­trate the elite, selec­tive use of Gold­en Lily gold by the world’s large banks.

“Gold War­riors” by Dou­glas Valen­tine; Coun­ter­punch; 9/25/2003.

Gold War­riors is more than a book about Japan’s “seri­ous, sober and delib­er­ate” plun­der­ing of Asia’s trea­sure from 1895 until 1945, and its col­lu­sion after the war with Amer­i­can offi­cials to recov­er and use the loot as a secret polit­i­cal action slush fund to pro­mote right wing regimes: Gold Warriors:America’s Secret Recov­ery of Yamashita’s Gold is a jour­ney into the dark­est recess­es of his­to­ry and the human soul. Authors Peg­gy and Ster­ling Sea­grave not only unrav­el one of the great­est crimes and cov­er-ups ever, they reveal some­thing new and star­tling about the depths of human deprav­i­ty and bar­bar­i­ty, and the human capac­i­ty for deceit.

The book begins in 1895 with a fas­ci­nat­ing account of the gris­ly assas­si­na­tion of Korea’s Queen Min by ter­ror­ists pos­ing as busi­ness agents of Japan­ese com­pa­nies. The clever coup d’etat pro­vides Japan with offi­cial deni­a­bil­i­ty, and the con­fu­sion that fol­lows pro­vides the Japan­ese with a pre­text for its mil­i­tary occu­pa­tion and plun­der­ing of Korea. Japan’s bru­tal con­quest of Korea fore­tells how it will achieve one vic­to­ry after anoth­er in Far East Asia over the ensu­ing 45 years.

The next vic­to­ry occurs in 1904, when tiny Japan defeats Rus­sia and annex­es South­ern Manchuria. Manchuria, unlike Korea, has lit­tle gold worth steal­ing. But it is rich in nat­ur­al resources, so the Japan­ese set­tle in for the long haul, and slow­ly devel­op Manchuria over sev­er­al decades. They build roads and cre­ate indus­tries and, more impor­tant­ly, they work with cor­rupt war­lords and Chi­nese gang­sters asso­ci­at­ed with Chi­ang Kai-shek’s Kuom­intang Par­ty to trans­form Manchuria into a vast pop­py field. By 1937 the Japan­ese and their gang­ster and Kuom­intang asso­ciates are respon­si­ble for 90% of the world’s illic­it nar­cotics. They turn Manchu emper­or Pu Yi into an addict, and open thou­sands of opi­um dens as a way of sup­press­ing the Chi­nese. When sub­ver­sion and pro­pa­gan­da don’t get the job done they com­mit unspeak­able atroc­i­ties. In late 1937 and ear­ly 1938 the Japan­ese slaugh­ter an esti­mat­ed 350,000 Chi­nese civil­ians and pris­on­ers of war in Nanking. Tens of thou­sands of women and girls are raped, and many are muti­lat­ed or mur­dered. Nanking fore­tells what will hap­pen as Japan expands its empire to include Indochi­na, Malaysia, Tai­wan, and the Philip­pines.

It’s also with the Rape of Nanking that the authors intro­duce the main char­ac­ters in the book; the Japan­ese sol­diers, crime lords, and offi­cials who, by the Decem­ber 1941 attack on Pearl Har­bor, real­ize they have bit­ten off more than they chew, and begin their retreat to Japan. A small inner cir­cle becomes respon­si­ble for secur­ing bil­lions of dol­lars worth of gold, plat­inum, cul­tur­al arti­facts and pre­cious gems stolen over the pre­vi­ous 45 years. The Japan­ese call this oper­a­tion Gold­en Lily, and the Sea­graves do not shy away from nam­ing those involved. They fin­ger Gen­er­al Doi­hara, and Japan’s top yakuza gang­ster, Kodama Yoshio, both of whom worked close­ly with Chi­nese drug smug­glers in Manchuria and Shang­hai. Gold­en Lily’s over­all boss is Prince Chichibu, one of Emper­or Hirohito’s three broth­ers. The Kem­peitai were Gold­en Lily’s first agents, mov­ing 6000 met­ric tons of gold from Nanking to Japan in 1938. But most of the Gold­en Lily trea­sure was buried in the Philip­pines by Gen­er­al Yamashita, and it is in the Philip­pines that most of the action in the book takes place.

When the Sea­graves claim that their lives are in dan­ger for hav­ing writ­ten this book, they aren’t kid­ding. This is explo­sive mate­r­i­al, for they not only name the Japan­ese involved in Gold­en Lily, they name the Japan­ese cor­po­ra­tions, includ­ing Nis­san, Mit­sui (which processed Manchuri­an opi­um into hero­in in the 1930s), Mit­subishi and Sum­it­o­mo as hav­ing used Amer­i­can POWs as slave labor­ers dur­ing the war. They also name the Amer­i­cans who worked with the Japan­ese to recov­er the buried loot after World War II. The Japan­ese had no monop­oly on deceit or dis­re­gard for human suf­fer­ing, and some of these Amer­i­cans con­spired with the Japan­ese to deny repa­ra­tions to the POWs, sex slaves and forced labor­ers that sur­vived.

The read­er will learn how, in order to share in the plun­der, mem­bers of Gen­er­al Dou­glas MacArthur’s occu­pa­tion army, along with US gov­ern­ment offi­cials and banks, con­nived to absolve Japan­ese cor­po­ra­tions, war crim­i­nals and drug smug­glers ­ many promi­nent offi­cials in the Post War gov­ern­ment ­ of respon­si­bil­i­ty for these ghast­ly crimes. How the Amer­i­cans went about this is very inter­est­ing. To ensure his silence, Gen­er­al Yamashita was hanged by a mil­i­tary tri­bunal in Feb­ru­ary 1946, while his right hand man, Koji­ma, was tor­tured by a Fil­ipino, San­ta Romana, into reveal­ing where the trea­sure vaults were buried in the Philip­pines. Romana then guid­ed CIA offi­cer Edward Lans­dale to the loot. Lans­dale did a quick inven­to­ry, and for the next 20 years super­vised Romana, the unlike­ly front man for a num­ber of slush funds. There­after the pur­loined gold was moved through 176 accounts in 42 banks in sev­er­al coun­tries, to peo­ple and orga­ni­za­tions the CIA want­ed to secret­ly sup­port.

The Amer­i­cans viewed this mon­ey as a War prize, and every Amer­i­can pres­i­dent from Har­ry Tru­man to George W. Bush has used the slush funds for var­i­ous pur­pos­es. Tru­man, through a num­ber of his top aides close to the Har­ri­mans and the Rock­e­fellers, set up the Black Eagle Trust Fund to fight com­mu­nism. Gen­er­al MacArthur set up the Yot­suya Fund to finance Japan’s yakuza under­world, and one of his aides set up the M‑Fund to help recon­struct Japan and turn it into an eco­nom­ic pow­er­house. Eisen­how­er used the M‑Fund to help cre­ate Japan’s Lib­er­al Demo­c­ra­t­ic Par­ty in 1956, and in 1960, Vice Pres­i­dent Richard Nixon turned over M‑Fund over to Japan’s Prime Min­is­ter, Kishi Nobo­suke, in return for kick­backs Nixon used to help finance his pres­i­den­tial cam­paign. Carter, Rea­gan, Clin­ton and both Bush­es were com­plic­it, using Gold­en Lily slush fund mon­ey to buy elec­tions in nations all around the world. George W. got into the act in March 2001, send­ing Navy SEAL com­man­dos to the Philip­pines to recov­er a por­tion of Gen­er­al Yamashita’s gold. Bush was pri­vate­ly in the mar­ket to buy some of the bul­lion that was being recov­ered. His rep­re­sen­ta­tive was William S. Parish, his nom­i­nee as ambas­sador to Great Britain, and the man­ag­er of his blind trust

Most of the action in the book takes place in the Philip­pines, where the Japan­ese buried much of the Gold­en Lily loot in 175 vaults in and around Mani­la. Prince Take­da Tsuneyoshi (using the nomme de guerre, Kim­su) was in charge in North­ern Luzon and gave maps to his Fil­ipino aid, Ben, indi­cat­ing where the vaults were locat­ed. Kim­su swore Ben to secre­cy, but grad­u­al­ly the maps slipped out and in 1971, a trea­sure hunter named Rox­as unearthed sev­er­al gold bars and a Gold­en Bud­dha that, amaz­ing­ly, weighed a ton. Word of the dis­cov­ery reached Philip­pine Pres­i­dent Fer­di­nand Mar­cos and soon there­after Rox­as was arrest­ed, tor­tured, and impris­oned, and Mar­cos acquired the Gold­en Bud­dha. Mar­cos, notably, had been work­ing with the CIA for years using Gold­en Lily assets to bribe nations to sup­port the Viet­nam War. In return for ser­vices ren­dered, Mar­cos was allowed to sell over $1 tril­lion in gold through Aus­tralian bro­kers.

By the 1970s, rumors about Gen­er­al Yamashita’s gold had grabbed the imag­i­na­tion of a num­ber on trea­sure hunters and in 1975, Robert Cur­tis acquired copies of Kimsu’s maps. Financed by far right wing John Birch Soci­ety, and work­ing with cut­throat Fer­di­nand Mar­cos, Cur­tis joined with Ben and Japan’s Lord Ichi­wara to find the remain­der of the loot. Alas, the part­ners were mutu­al­ly untrust­wor­thy and Cur­tis, like Rox­as, ran into trou­ble. But the dan­gers of hunt­ing for buried Japan­ese gold in the Philip­pines did not dis­suade oth­ers, and in the mid-1980s a group of dis­grun­tled for­mer CIA offi­cers and mil­i­tary men, includ­ing Gen­er­als John Singlaub and Robert Schweitzer, orga­nized an expe­di­tion using for­mer Navy SEALs and Army Spe­cial Forces per­son­nel. One mem­ber of the team, Charles McDougald, actu­al­ly recov­ered 325 met­ric tons of gold in 1987, although, as one might sus­pect, he found him­self in trou­ble too.

The Sea­graves con­clude their excit­ing and excel­lent book by tak­ing us down the Mon­ey Trail, and explain­ing, in layman’s terms, how the Gold War­riors have been able to cov­er their tracks. Emper­or Hiro­hi­to, for exam­ple, worked direct­ly with Pope Pius XII to laun­der mon­ey through the Vat­i­can bank. In anoth­er instance, Japan’s Min­istry of Finance pro­duced gold cer­tifi­cates that were slight­ly dif­fer­ent than ordi­nary Japan­ese bonds. The Sea­graves inter­view per­sons defraud­ed in this scam, and oth­er scams involv­ing the Union Bank of Switzer­land and Citibank.

With­out descend­ing into con­vo­lut­ed legalese, the Sea­graves describe the devi­ous means bankers have used to con­ceal the vast hordes of Nazi and Japan­ese gold in their pos­ses­sion. The Sea­graves do this pri­mar­i­ly by exam­in­ing mul­ti-mil­lion-dol­lar law­suits filed by Rox­as, Cur­tis, and San­ta Romana’s heirs against Citibank, the US gov­ern­ment, and Philip­pine Pres­i­dent Fer­di­nand Mar­cos. In this way the Sea­graves reveal how the banks use com­plex account­ing meth­ods, or claim that gold cer­tifi­cates are fake, or sim­ply move gold to off­shore accounts to con­ceal it. In every case the US gov­ern­ment assists the banks by stonewalling, refus­ing to inves­ti­gate, or ignor­ing Free­dom of Infor­ma­tion Act requests.

In one note­wor­thy case, attor­ney W.R. “Cot­ton” Jones walked into the Swiss Bank Cor­po­ra­tion in New York City and asked the bank to authen­ti­cate a $25 mil­lion cer­tifi­cate of deposit issued by the Bank and bear­ing the Fed­er­al Reserve seal. Cot­ton was quick­ly arrest­ed by the Secret Ser­vice and his cer­tifi­cates were con­fis­cat­ed. As Cot­ton rhetor­i­cal­ly asks, how can a Swiss bank have a fed­er­al agency inter­vene on its behalf and con­fis­cate per­son­al pos­ses­sions? What right does the Secret Ser­vice have to arrest, inter­ro­gate, intim­i­date, and threat­en any­one on a Swiss bank’s behalf, with­out due process of law?

The answer is obvi­ous: the banks that main­tain the US government’s stolen gold are above the law, and if they stonewall long enough, any­one try­ing to sue them will even­tu­al­ly fade away. The Sea­graves asked the Trea­sury Depart­ment, Defense Depart­ment, and the CIA for records on Yamashita’s gold in 1987, but were told the records were exempt from release. Dur­ing the 1990s, the records mys­te­ri­ous­ly went miss­ing. Oth­er records were destroyed in what the Sea­graves caus­ti­cal­ly call “his­to­ry laun­der­ing.”

Through­out the book, the writ­ing is descrip­tive and engag­ing. Hav­ing authored sev­er­al books about the Far East, the Sea­graves are experts in their field and their argu­ments are con­vinc­ing. In fact, they have com­piled so much sup­port­ing evi­dence that many of the doc­u­ments are con­tained on com­pan­ion CDs the read­er can buy sep­a­rate­ly at the Sea­graves’ web site. There are two CDs, the first con­tain­ing eleven files. This writer exam­ined three of them ­ on Lans­dale, Kodama, and Gold­en Lily ­ and found them utter­ly fas­ci­nat­ing. The sec­ond CD con­tains 19 files, many con­cern­ing the var­i­ous law­suits the Sea­graves have used as evi­dence to prove their case.

And they do more than prove their case. In the end, Gold War­riors tran­scends its sub­ject mat­ter, and its great tri­umph is that it tells us some­thing new about the sav­age and avari­cious side of human nature. The read­er will walk away from this book astound­ed and out­raged at the immen­si­ty of the fraud­u­lent activ­i­ties that the world’s gov­ern­ments, banks, and spies are engaged in. Gold War­riors is chill­ing in its accu­mu­la­tion.

4a.We briefly high­light the use by the Hong Kong pro­test­ers of the racist term “shi­na”–a word whose Eng­lish equiv­a­lent is “chink.” It has its gen­e­sis dur­ing the Sino-Japan­ese war.

“US Backs Xeno­pho­bia, Mob Vio­lence in Hong Kong” by Dan Cohen [The Gray Zone]; Con­sor­tium News, 8/19/2019.

. . . . In July, pro­test­ers van­dal­ized the Hong Kong Liai­son Office, spray-paint­ing the word, “Shi­na” on its facade. This term is a xeno­pho­bic slur some in Hong Kong and Tai­wan use to refer to main­land Chi­na. The anti-Chi­nese phe­nom­e­non was vis­i­ble dur­ing the 2014 Umbrel­la move­ment protests as well, with signs plas­tered around the city read­ing, “Hong Kong for Hong Kongers.” . . . .

4b. We con­clude by high­light­ing Fred J. Cook’s ana­lyt­i­cal account of the McCarthy peri­od, The Night­mare Decade. One of the focal points of Cook’s book is McCarthy’s theme that State Depart­ment [Com­mu­nist] treach­ery had “lost” Chi­na to Mao and his forces.

Exploit­ing the meme that “pinko” State Depart­ment offi­cials were respon­si­ble for Mao’s ascen­dance, McCarthy and his team suc­cess­ful­ly purged the State Depart­ment of offi­cials whose out­look on Chi­ang Kai-shek was real­is­tic.

The fate of John Service–described in the excerpt of The CIA as Orga­nized Crime–illus­trates this kind of activ­i­ty.

In FTR #s 932 and 933 (among oth­er pro­grams), we not­ed the piv­otal influ­ence of Joe McCarthy’s right-hand man Roy Cohn on the pro­fes­sion­al devel­op­ment of Don­ald Trump. We won­der what influ­ence Cohn and the McCarthy lega­cy may have had on Trump’s pol­i­cy toward Chi­na.

Aside from the airy pre­sump­tion that Chi­na was “ours” to “lose,” McCarthy’s the­sis ignored the effects of U.S. pol­i­cy in that coun­try before, dur­ing and after, World War II. (This trans­gres­sion is, of course, sup­ple­men­tal to Tail­gun­ner Joe’s fab­ri­ca­tion of evi­dence against those he tar­get­ed.)

In addi­tion to sup­port for Chi­ang Kai-Shek, whom Gen­er­al Joseph Stil­well com­pared to Mus­soli­ni, U.S. pol­i­cy of using scores of thou­sands of Japan­ese sol­diers as anti-Com­mu­nist com­bat­ants was loath­some to the Chi­nese pop­u­la­tion, who had felt the full mea­sure of Japan­ese atroc­i­ty dur­ing years of war­fare.

Leaf­ing through Night­mare Decade for the first time in years, we came across a pas­sage read into the record in AFA #11.

More than 16 months after V‑J Day (the offi­cial con­clu­sion of the hos­til­i­ties of World War II in Asia) the U.S. was coun­te­nanc­ing the use of 80,000 Japan­ese troops (rough­ly eight divi­sions) as anti-Com­mu­nist com­bat­ants in east­ern and north­west­ern Manchuria alone!

Hav­ing been raised on Vic­to­ry at Sea and sim­i­lar fare, this pas­sage is yet anoth­er reminder that–70 + years or so after V‑J Day–“we’re not in Kansas any more, Toto.”

In ret­ro­spect, we nev­er were.

For more on the sub­ject of the Japan­ese fas­cism, see–among oth­er pro­grams–FTR #‘s 905, 969, 970.

The Night­mare Decade: The Life and Times of Sen­a­tor Joe McCarthy by Fred J. Cook; Copy­right 1971 by Fred J. Cook; Ran­dom House [HC]; ISBN 0–394-46270‑x; p. 219.

. . . . When the war end­ed, Chi­na was in utter chaos. Thou­sands of Japan­ese troops wan­dered around the coun­try­side, ful­ly armed, with no one accept­ing their sur­ren­der. John F. Mel­by [a State Depart­ment offi­cer], in a day-by-day diary he kept at the time, reflect­ed in bewil­der­ment upon this anom­aly. On Decem­ber 27, 1945, he not­ed: “I still don’t under­stand about the Japan­ese. Offi­cial­ly they are being dis­armed, but the fact is they nev­er seem to be. In Shang­hai, fif­teen thou­sand still walk the streets with full equip­ment. In Nanking, the high Japan­ese gen­er­als are bosom bud­dies of the Chi­nese. In the north, tens of thou­sands of Japan­ese sol­diers are used to guard rail­roads and ware­hous­es and to fight the Com­mu­nists. If you ask what this is all about, the answer is either a denial or in more can­did moments a ‘Shh, we don’t talk about that.’ ” In anoth­er entry on Jan­u­ary 30, 1947, a good six­teen months after V‑J Day, Mel­by not­ed that, though it was being kept “very qui­et,” there were “eighty thou­sand hold­out Japan­ese troops in east­ern and north­west­ern Manchuria, who are ful­ly equipped, fight­ing the Com­mu­nists.” . . . .

Pro­gram High­lights Include: Review of the Hong Kong pro­test­ers’ use of the racist term “Shina”–which had its gen­e­sis dur­ing the Sino-Japan­ese war; Review of HSBC’s rela­tion­ship to jihadism and opi­um traf­fic, going back to the Opi­um Wars.

Discussion

No comments for “FTR #1095 The Destabilization of China, Part 6: Asian Deep Politics”

Post a comment