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For The Record  

FTR #445 The Bush Family & the Intelligence Community

Recorded February 8, 2004
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Presenting the work of Kevin Phillips (a mainstream conservative and former consultant to President Nixon), this broadcast draws on his very important recent book American Dynasty. Mr. Emory emphatically recommends this book! The program features Phillips’ discussion of the Bush family’s profound connections to the intelligence community over a period of more than 50 years. With the Bush family’s Wall Street connections to both U.S. and Third Reich finance and industry as its foundation, the Bush family’s relationship with the intelligence community stretches from Prescott Bush, Sr. on down to the people surrounding the current president. In his analysis of the Bush family’s intelligence connections, Phillips emphasizes the relationship between Prescott Bush and Allen Dulles of the CIA, as well as the Caribbean influence of the Walker family’s extensive holdings in Cuba and the Dominican Republic. The elder George Bush appears to have inherited his father’s Wall Street connections to the Dulles milieu, which, in combination with the Walker Caribbean influence, paved the way for his involvement with the intelligence community, which appears to have begun in the early ’50’s. All around the elder George Bush, one finds the intersection between the petroleum industry and the intelligence community—a relationship that shaped the character of the political lives of both the elder and younger George Bush.

Program Highlights Include: The role of Laurence Silberman (appointed by Bush to head the commission just formed to investigate intelligence failures in the Middle East) in the Iran-Contra and October Surprise affairs; the elder George Bush’s liaison with Dresser Industries’ chief Henry Neil Mallon, CIA director Allen Dulles and former Nazi spy Hans Gisevius; George Bush (Sr.)’s work for Dresser Industries (today part of Halliburton Oil); Dresser Industries’ connections to the CIA; the probable connection of the elder Bush’s Zapata Petroleum to the intelligence community; Zapata’s links with the CIA-connected Mexican petroleum milieu and oil kingpin Ed Pauley; the CIA/Pemex/Texas oil link to the Watergate scandal; connections of the Skull and Bones society to the CIA and the Bay of Pigs operation; the significance of the elder George Bush’s intelligence connections to the wars in the Persian Gulf and Afghanistan; the entanglements of “the Wars of the Texas Succession” (as Phillips calls them) to which the younger Bush is heir; the influence of the philosophy of Macchiavelli on the administrations of both Georges Bush.

1. The program begins by highlighting the appointment of retired judge Laurence Silberman to a panel empowered with investigating the intelligence shortcomings that led to the false estimates of Iraqi WMD’s. “George Bush, the US president, today announced the formation of a commission to investigate failures in intelligence used to justify the war in Iraq. Mr. Bush said: ‘We are determined to find out what happened.’ In a televised briefing at 6:30pm (GMT), Mr. Bush said the nine-member panel, to be chaired by a former governor of Virginia, Charles Robb, and a retired judge, Laurence Silberman, would be instructed to report on its findings in March 2005. . . .” (“Bush Announces WMD Commission” by George Wright; The Guardian Unlimited; 2/6/2004; accessed at: http://www.guardian.co.uk/Iraq/Story/0,2763,1142859,00.html.)

2. Next, the broadcast sets forth information about Silberman’s background. Among other things, Silberman was at the core of many of the intelligence-related scandals of the 1980’s and 1990’s. In his remarkable, important book, Kevin Phillips labels the two Persian Gulf wars, the Iran-Contra scandal, the Iraqgate scandal and the two Afghan wars as “The Wars of the Texas Succession.” (Phillips entitles an entire chapter of his book as such.) Walsh was one of the judges who overturned the conviction of Oliver North, stemming from his Iran-Contra activities. ” . . . For the next six years, Walsh oversaw a serious-though-plodding probe of that scandal, infuriating Republican leaders, such as Sen. Bob Dole, who favored a tidy cover-up. Walsh’s diligence also led to a behind-the-scenes power play by conservative federal judges to undercut Walsh’s probe and turn the special prosecutor apparatus into another tool of conservative power.” (“Last Word: Judge Walsh’s Warning”; The Consortium; 1996; accessed at: http://www.consortiumnews.com/archive/story10.html.)

3. Details about how Silberman helped to cover-up the Iran-Contra affair by helping to overturn the conviction of Oliver North: “This legal coup began when hard-line Reagan judges David Sentelle and Laurence Silberman overturned Walsh’s felony conviction of Oliver North, by a two-to-one vote, in 1990. Sentelle, a protégé of North Carolina’s conservative Sen. Jesse Helms, was also part of the panel that reversed the guilty verdicts against North’s White House boss, Adm. John Poindexter.” (Idem.)

4. In his remarkable decision to overturn the North conviction, Silberman was aided by Bush’s solicitor general, Kenneth Starr—who eventually became Whitewater Special Prosecutor. “When Walsh moved to appeal the North ruling (which was based on an unprecedented application of immunity rules), Walsh was supported by the Justice Department’s career appellate division. But Walsh was opposed by Bush’s solicitor general, none other than Kenneth Starr.” (Idem.)

5. “While the battle over the North case played out, conservative Chief Justice William Rehnquist was fixing the game at another level. He replaced the senior panel that traditionally picked special prosecutors with a new panel run by Sentelle. The revamped panel was in place when Republican Robert Fiske was ousted as Whitewater special prosecutor and was replaced by legal conservative activist Starr.” (Idem.)

6. Starr and Silberman are part of a far-right judicial milieu centered on the Federalist Society. (For more about the Federalist Society, see FTR#289.) “Indeed, all the conservative judges involved in this seizure of the special prosecutor apparatus work closely with the far-right Federalist Society, which has as a principal goal the purging of liberalism from the federal bench. The Federalist Society is so far right that it has even attacked the American Bar Association as ‘collectivist, radical.’ In an interview, Walsh said he found the ‘dogmatism that seems to come out of the Federalist group’ troubling. . . .” (Idem.)

7. Silberman’s name also crops up in connection with the “October Surprise”—the apparent collusion between the Reagan-Bush campaign in 1980 and the Khomeini forces in Iran to withhold the U.S. hostages taken from the U.S. embassy until after Jimmy Carter’s humiliation and consequent election defeat were assured. (For more about the October Surprise, see—among other programs—RFAs 31, 38. For more about the Iran-Contra scandal, see—among other programs—RFAs 29-35, 38—available from Spitfire—as well as FTRs 01, 2, 29, 174, 248, 310.) “In September 1980, [Richard] Allen got a call from Robert McFarlane, then an authority on Iran for the Senate Armed Services Committee. McFarlane told Allen that he knew a representative of the Iranian government who might be useful. McFarlane wanted us to meet him; he was emphatic,’ recalls Allen. And against my better judgement, I agreed.’ Allen asked another campaign advisor, Laurence Silberman, to accompany him. The four met in the lobby of L’Enfant Plaza Hotel in Washington. The Iranian envoy informed them that he was on good terms with Khomeini’s inner circle. Then he spun a web about how he could get the hostages released directly to our campaign before the election,’ recalls Silberman. And that point, we cut him off.’ . . . Maybe. . . . Among other things, the paucity of details makes the account disturbing. The time and date of the conference, even the envoy’s identity, are all unknown. . . . But considering the enormity of the envoy’s proposal, and Allen’s own well-documented obsession with Iranian affairs, that particular blackout seems too convenient. Three highly respected professionals, whose livelihoods depend on recalling names, faces and events, unaccountably develop amnesia. It’s unlikely that they would meet an envoy without knowing beforehand his status, reliability and objective.” (“October Surprise News Coverage [House of Representatives—February, 1992]”; p. 29 [of 64]; accessed at http://www.fas.org/irp/congress/1992_cr/h920205-october-clips.htm.)

8. Turning to the Kevin Phillips book, the broadcast relates some of the profound connections between U.S. industry and finance and the economic engines that financed Hitler and powered his war machine. (For more about this subject, see—among other programs—RFAs 1, 2, 10, 37, Miscellaneous Archive Shows M11, M26, M42—available from Spitfire. In addition, see—among other programs—FTRs 29, 36-38, 113, 121, 186, 248, 361, 370, 435. The U.S. investment in Germany is set within a macro-economic framework in FTR#441.) “In the 1920’s, Germany had been by far the most important international market for recycling the new private U.S. capital created by the war. Most of this U.S. investment, which approached $2 billion, took the form of loans to German industry, direct investment in German companies, loans to German municipalities, and endless dollars of Dawes Plan credits. Christopher Simpson, in The Splendid Blond Beast, listed the principal U.S. Firms that bought or began establishing major German subsidiaries or joint ventures during the 1920’s: ITT, General Motors, Ford, Standard Oil of New Jersey, and General Electric. All were among America’s dozen largest companies.” (American Dynasty: Aristocracy, Fortune, and the Politics of Deceit in the House of Bush; by Kevin Philips; Viking [HC]; Copyright 2004 by Kevin Phillips; ISBN 0-670-03264-6; p. 186.)

9. “U.S. overseas investment didn’t end with Hitler’s accession to power. Capital continued to move to Germany during the 1930’s under the Third Reich. Reports by the U.S. Commerce Department showed the U.S. investment in Germany increased by 48.5 percent between 1929 and 1940, while declining almost everywhere else in continental Europe.” (Ibid.; p. 187.)

10. Phillips notes that the companies invested in Nazi Germany turned to Allen and John Foster Dulles (of Sullivan and Cromwell). Allen Dulles played a central role in the masking of the Bush family’s assets in the economy of the Third Reich. (For discussion of the Bush family’s involvement with Third Reich industry and finance, see—among other programs—FTRs 186, 248, 273, 332, 361, 370, 435.) “By 1939, many of these various units—manufacturing engines, armored chassis, and artificial rubber—wee mainstays of the German war machine. As pricey, immobile assets that could not be repatriated, the large German subsidiaries were also important props of the valuations of many of the biggest U.S. companies. Instead of the obvious pro-Allied economic self-interest of 1917, many major corporations faced a very different conundrum in 1939-41. Top executives and investment bankers uncertain about what they ought to do—or how they ought to take cover—hired lawyers like John Foster and Allen Dulles.” (Idem.)

11. Setting the stage for discussion of Prescott Bush, Sr. (the current president’s grandfather) and his relationship with the intelligence community, the program synopsizes the incorporation of the Reinhard Gehlen spy outfit into the U.S. national security establishment. (For more about the Gehlen organization, see—among other programs—RFAs 1-3, 11, 14, 15, 21, 22, 36, 37, available from Spitfire. In addition, see FTRs 44, 120, 180, 332.) Note, in particular, the role of former Gestapo officer Hans Gisevius and his work on behalf of Admiral Wilhelm Canaris. Gisevius was to become an associate of Prescott Bush in the context of his work with Dresser industries. (Mallon and Dresser were the first employees of the elder George Bush after his graduation from Yale. See RFA#37—available from Spitfire—and FTR#367.) Dresser Industries is now part of Halliburton, whose former CEO is Dick Cheney. “The speed with which postwar U.S. military and intelligence officers welcomed anti-Soviet Germans who had worn Hitler’s insignia throughout the war reflected the historical preference for practicality over morality. Considerable portions of the German Abwehr and wartime Reinhard Gehlen organization—Fremde Heere Ost, the army intelligence group monitoring Eastern Europe and Russia—had shifted to the employ of the United States by 1950, implementing the anti-Soviet alliance scores of Germans had discussed with Stewart Menzies and Allen Dulles in other days and other uniforms. Hans Gisevius, the agent sent by Admiral Wilhelm Canaris and German intelligence to meet with Allen Dulles in wartime Switzerland, was about to begin a new cold war role: carrying messages and ideas from Neil Mallon at Dresser Industries to the same Allen Dulles, soon to head the CIA.” (Ibid.; pp. 194-195.)

12. Phillips notes the role of many of the Wall Street power elite as 1950 progressed. Union Banking Corporation and Fritz Thyssen are part of the Bush business milieu. (See FTRs 186, 248, 332, 346, 361, 370, 435.) “In 1950, Robert A. Lovett himself was deputy secretary of defense and about to become secretary; Averell Harriman was the president’s national security adviser; Prescott Bush was about to run for the U.S. Senate from Connecticut; Allen Dulles was deputy director of the CIA; and John Foster Dulles was waiting for the next Republican president to appoint him to the post of secretary of state earlier held by his grandfather and his uncle. Whatever these men and their investment banks and law firms had or hadn’t done for I.G. Farben, Fritz Thyssen, and the Union Banking Corporation, in terms of broad politics, at least, they had picked the right side—the camp that became the U.S. national security establishment.” (Ibid.; p. 195.)

13. Highlighting the profound role Prescott Bush appears to have played in the intelligence community, Phillips notes Bush’s close relationship with Allen Dulles. “Bush also kept up with the Dulles brothers. In 1946, almost as soon as Allen Dulles was back in New York, Bush had him to lunch. In 1961, when Dulles was pushed from his CIA director’s aerie because of the Bay of Pigs foul-up, he made it a point, on the day before his successor, John McCone, was named, to bring McCone along to a dinner with Prescott Bush.” (Ibid.; pp. 196-197.)

14. “In 1962, as Bush was about to leave the Senate, he helped to launch the new National Strategy Information Center, to be run by Frank Barnett, a right-tilting expert on political warfare and covert operations who had previously directed research at North Carolina’s CIA-linked Smith Richardson Foundation. Bush knew well those involved, because during the early 1950’s, at the request of H. Smith Richardson and his son-in-law Eugene Stetson, a Bonesman and former Brown Brothers Harriman colleague of Bush’s, he had given the Richardsons advice and supportive counsel on setting up their foundation.” (Ibid.; p. 197.)

15. “Which brings us to what, in the television quiz show parlance of that very era, was called ‘the $64,000 Question”: Who—and what—was Prescott Bush in the U.S. intelligence community? And did he leave a legacy to his son?” (Idem.)

16. “The senior Bush was not of the intelligence community, in the sense of having been the director or an official of the OSS or CIA; but he was indisputably close to it, probably as a confidant, ‘asset,’ or high-level counselor, much as Juan Trippe of Pan American Airways and William S. Paley of CBS were widely thought to have

been. Indeed, Prescott Bush was a long-serving member of both Trippe’s and Paley’s corporate boards. He was also a war-time board member of two companies—the Vanadium Corporation of America and Dresser Industries—that provided uranium ore and uranium gaseous diffusion pumps, respectively, for the Manhattan Project and subsequent atomic-bomb development.” (Idem.)

17. Bush met frequently with Dulles, Mallon and the aforementioned Hans Gisevius. Phillips even speculates that Prescott Bush may have served as a “shadow CIA director.” “Dresser’s CIA connections probably matched those of CBS and Pan American. Researcher Bruce Adamson has obtained copies of 1953-54 correspondence between Dresser chief Neil Mallon and CIA director Allen Dulles. The meetings arranged between the two men sometimes also included Senator Prescott Bush, ex-German agent Hans Gisevius, or Defense Secretary Charles Wilson. Several of the letters cited plans, notably a pilot project in the Caribbean, that had been thought up by Gisevius—hardly your everyday Dallas executive—now working for Dresser and Mallon. The intrigued researcher, connecting these dots and many others, starts to assume that Prescott Bush of Yale, Skull and Bones, and Brown Brothers Harriman was an off-the-books eminence grise, a Man Who Could Be Trusted, perhaps even a shadow CIA director. [Italics are Mr. Emory’s]. How he might have gotten there is even more murky. . . .” (Ibid.; pp. 197-198.)

18. ” . . . One conclusion can reasonably be drawn: that the men who managed most of the high-level financial and corporate relations between the United States and Germany in the period from 1933 to 1941 developed an unusual kind of information and expertise that made them important to the war effort in general and the U.S. intelligence community in particular. As a result, after World War II was over, with the Soviet Union soon becoming an enemy and Germany being transformed into a U.S. ally, the new American national security state formed around a new establishment in which Prescott Bush and many of his friends were prominent and honored members.” (Ibid.; p. 199.)

19. Turning to the subject of the younger George Bush’s involvement with the CIA and the intelligence community, Phillips notes the probable influence of Prescott Bush, and George H. Walker (Jr. and Sr.) The Walkers were heavily invested in Cuba and the rest of the Caribbean, a hotbed of intelligence activity from the 1950’s on. “The influences of Prescott Bush’s milieu must have been significant. But we should not forget George H. Walker’s role. We’ve explored Prescott Bush’s own circle and its wide connections. As for Walker, no one can know what, in those summer walks and hours out on the old man’s boat in the 1930’s and 1940’s, he told the grandson who carried his name. However, Walker had derring-do to spare, plus strong interests in the Caribbean, where the political and covert action was soon to heat up. In addition to his European ventures, he had longstanding ties to Cuba and served as a director of seven related companies during the mid-and late 1920’s and early 1930’s: the Cuba Company, the Cuban Railroad, Cuban-Dominican Sugar, Barahona Sugar, Cuba Distilling, Sugar Estates of Oriente, and Atlantic Fruit and Sugar. Prominent New York investment bankers did not undertake such commitments lightly; Walker was centrally involved with the island through three major industries: sugar, (rum) distilling, and a major railroad that served these enterprises (and became a symbol of yanqui power.)” (Ibid.; p. 202.)

20. “In the 1930’s and early 1940′, young Bush’s favorite uncle, Herbie—George Herbert Walker, Jr.—took over directorships of several of these Cuban-Dominican sugar companies, which ultimately merged into West Indies Sugar in 1942. It is not hard to imagine the young George H.W. Bush picking up from grandfather and uncle alike a romantic sugar-plantation, rum, and palm-trees image of the heavily policed, old-regime Cuba of Fulgencio Batista. The island was much liked by a visiting generation of middle-and upper-class Americans.” (Ibid.; pp. 202-203.)

21. “Uncle Herbie” Walker was deeply involved with the reorganization of George H.W. Bush’s Zapata Oil—itself heavily involved in the Caribbean. “His uncle would have been angry in 1959, when the new leftist Castro regime announced that it would nationalize the holdings of the U.S. sugar companies. Castro had launched his revolution several years earlier in eastern Cuba’s sugar-and-rum-centered Oriente Province, and some of the American owners of sugar mills and estates had contributed funds in the hope of moderating his movement. Oriente-based West Indies Sugar had been a particular target of rebel levies and depredations. Coincidentally, 1959 was the year when Uncle Herbie helped to finance the reorganization of Zapata by which the offshore drilling rigs—at least one operating near Cuba—became independent under Walker-Bush control. George H. Walker Jr. must have been even angrier in 1960 when Castro nationalized the West Indies Sugar Company, of which he had been a director until 1959. Infuriated by Castro’ sugar estate seizures, the U.S. government withdrew its recognition of Cuba and launched an economic embargo in January 1961. Three months later came the Bay of Pigs invasion.” (Ibid.; p. 203.)

22. The Bush/Cuban connection continued through the generations. As discussed in FTRs 249, 268, Jeb Bush was very close to the Anti-Castro Cubans. Jeb Bush even appointed the grandson of Fulgencio Batista to a position as a state supreme judge. “Grandfather Walker had died in 1953, but Prescott Bush, too, had a considerable psychological involvement with Cuba, its politics, and its importance to the United States. The events of the later 1950’s and early 1960’s would make the commitments of both Prescott and George H. W. Bush stand out in bold relief. Cuba’s fate would be a personal as well as professional preoccupation. Old Batista-era loyalties would linger (even into the twenty-first century, when Florida governor Jeb Bush would nominate Batista’s grandson, Raul Cantero, to the state supreme court).” (Idem.)

23. As Phillips notes, George H.W. Bush’s employment for Dresser Industries may well have involved work on behalf of the intelligence community. “George H.W. Bush’s intelligence connections may have affected when and why he went to Texas. Working for Ray Kravis in Tulsa might not have been relevant; working for Neil Mallon, as Dresser shifted its focus and headquarters from Ohio to Texas and turned global, would have been more so. Dresser had top secret clearances during the 1941-45 war years for various projects, and after Mallon relocated to Dallas in 1950, the company’s greatest growth came from overseas activity, conceivably including some covert projects.” (Idem.)

24. George Bush (Sr.)’s petroleum/intelligence activities may well have graduated from his association to Dresser to his involvement with Zapata Offshore. “The international side of the oil business, whether in the Middle East or the Caribbean, lent itself to close involvement with the CIA and U.S. intelligence, as numerous chroniclers have elaborated. Although George Bush left Dresser in 1951, he maintained close relations with Mallon and other friends there. They referred clients to him after he joined up with the Liedtke brothers in 1953 to form Zapata Petroleum, which decided to branch out into deep-sea drilling with Zapata Offshore in 1954. This happened to be the year that the CIA under Allen Dulles stepped up its own Caribbean activity with the overthrow of the Left-leaning government of Jacobo Arbenz Guzman in Guatemala. Bruce Adamson, who assembled the Dresser-Dulles correspondence, wondered about a possible connection between the Bush-Liedtke Zapata offshore enterprise and the Caribbean project that Dresser chief Mallon and former German intelligence officer Hans Gisevius had discussed a little earlier with Du

lles.” (Ibid.; pp. 203-204.)

25. Yet another of the areas of intersection between George Bush (Sr.)’s oil business career and his probable early involvement with the intelligence community (CIA) concerns Zapata Petroleum’s connections to Mexican oil and Ed Pauley. “Here analysis has to rely on implication and common sense. Adamson, Loftus, The Nation magazine, and the U.S. journalism effort named Project Censored all posited some direct George H.W. Bush—CIA connection emerging between 1954 and 1963. Related hints of a Mexican-connected Bush initiation also came from reporter Jonathan Kwitny in his 1988 Barron’s article ‘The Mexican Connection.’ The implications are considerable; concrete proof is minimal.” (Ibid.; p. 204.)

26. “In 1988, during Bush’s presidential campaign, Kwitny revealed that back in 1960, Bush and Zapata Offshore, together with Jorge Diaz Serrano, a Mexican oilman recommended by Dresser, had set up a new Mexican company called Permargo. The latter, under the authority of Pemex, the Mexican oil monopoly, was to do deep-sea drilling off the Mexican coast for Pan American Petroleum, a firm run by U.S. oilman Ed Pauley. Pemex and Pauley were both known for CIA connections.” (Idem.)

27. “Bush, however, was already drilling for Pauley under a Zapata Offshore contract. Details about Zapata’s Permargo involvement didn’t check out, and Kwitny smelled a rat or two, especially when it emerged that in 1981, shortly after Bush had been elected vice president, the SEC ‘inadvertently destroyed’ the Zapata Offshore SEC filings for 1960 to 1966. Some years later Loftus wrote, ‘The ‘old spies’ say Bush lost his virginity in the oil business to Ed Pauley.’ He added that ‘the Zapata-Permargo deal also caught the attention of Allen Dulles, who, the ‘old spies’ report, was the man who recruited Bush’s company as a part-time purchasing front for the CIA. Zapata provided commercial supplies for one of Dulles’ most notorious operations: the Bay of Pigs invasion.” (Idem.)

28. “Biographers have found more Zapata details in the papers of former U.S. senator Ralph Yarbrough, whom Bush unsuccessfully opposed in the 1964 election. That year, Yarborough, who liked to call Bush ‘a Connecticut carpetbagger,’ had arranged for a supporter named Allan Mandel to do some campaign research on Bush’s company. What Mandel turned up—his report still exists among the senator’s papers in Austin—ws a description of Zapata Offshore’s unusual and complex business structure: a half-dozen subsidiaries ranging from Zapata International, Seacat Zapata, and Zapata de Mexico to the Zapata Overseas Corporation. Tax advantages were one explanation; handling covert funds could have been another.” (Ibid.; pp. 204-205.)

29. As discussed in RFA#37—available from Spitfire—and FTR#367, Bush’s name was in the address book of George De Mohrenschildt, a former Nazi spy and one of Lee Harvey Oswald’s intelligence babysitters. “As for CIA ties, Permargo obviously had some; in addition note has been made of the published correspondence that connected Dresser with the CIA and Allen Dulles. We will also see shortly that the Liedtkes and Zapata-turned-Pennzoil were tied with Pemex to a 1972 CIA money-laundering chain related to the Watergate break-in. Bruce Adamson added that ‘George Bush and Edwin Pauley (both CIA) were both listed in 1954-55 in (CIA asset) George de Mohrenschildt’s personal address book, which I obtained a copy [of] from the West Palm Beach Sheriff’s office in 1992.'” (Ibid.; p. 205.)

30. Underscoring the profound Skull and Bones connection to the CIA, Phillips relates the links between the planners for the Bay of Pigs and Skull and Bones. The shell corporation that funded the society may well have been used as a funding conduit for the ill-fated invasion. “Yaleman Ron Rosenbaum, who wrote about Skull and Bones in the New York Observer and elsewhere, came up with a chilling angle in his attempts to trace the shell corporation—the Russell Trust Association—that had funded the society’s year-to-year existence. A check with the Connecticut secretary of state’s office in 2000 found no such corporation, which seemed to leave a dead end. But then a researcher’s careful follow-up found out that years earlier the association had been abolished, then reestablished under the name RTA Incorporated.” (Ibid.; p. 206.)

31. “Let Rosenbaum tell his own tale of discovery: ‘The new papers of reincorporation that erased the century-old Russell Trust Association were filed at 10:15 A.M. on April 14, 1961. Two hours later, at noon on that day, the orders went out to begin the Bay of Pigs operations—the covert CIA-financed invasion of Castro’s Cuba, a bloody fiasco that still haunts us four decades later. Concidence? Probably. But then it’s also true that one of the CIA’s masterminds for the Bay of Pigs operation was a man named Richard Drain, Skull and Bones ’43. And the White House planner of the Bay of Pigs operation was McGeorge Bundy, Skull and Bones ’40. And the State Department liaison for the Bay of Pigs Operation was his brother William P. Bundy, Skull and Bones ’39. And the man who filed the reincorporation papers that erased the Russell Trust Association from existence on the day of the Bay of Pigs was Howard Weaver, Skull and Bones ’45 (George Bush’s class), who retired from the CIA in 1959. All of which might lead one to suspect that the Skull and Bones corporate shell had been used as a clandestine conduit for the Bay of Pigs, and then erased from existence to cover up the connection as the invasion got under way.’ Yes, it must be a coincidence; it has to be a coincidence.” (Idem.)

32. Yet another of the CIA/petroleum links to the career of George Bush involves a slush fund that channeled monies to the Watergate Burglars. (As Phillips notes, many of the Watergate burglars had backgrounds in the Bay of Pigs operation, and the monies came from Texas allies of George H.W. Bush. Bush was chairman of the Republican National Committee at the time.) “It is fair to say that by December 1975, when White House chief of staff Donald Rumsfeld was working to derail George H.W. Bush’s presidential ambitions by slotting him as CIA director, three generations of the Bush and Walker families already had some six decades of intelligence-related activity and experience under their belts. However, there is still one more connection to mention: the Pemex-Pennzoil-CIA money line coincidentally or otherwise exposed in 1972 after funds it provided through Mexican banks were found in the hands of the Watergate burglars. Of those men, a solid majority—Howard Hunt, Frank Sturgis, Eugenio Martinez, Virgilio Gonzalez, and Bernard Barker—had been involved in the abortive Bay of Pigs episode.” (Ibid.; pp. 206-207.)

33. “Nixon and his senior advisers knew that the money had come through Mexican banks from ‘the Texans’: regional Nixon finance chief William Liedtke, Robert Mosbacher, and other Bush friends. Apparently they were not sure what that meant—what kind of a CIA pipeline was involved or what kind of usage was under way. Author Loftus says that George H.W. Bush’s subsequent high standing with the intelligence community came not from his Bay of Pigs involvement but from ‘when he told Nixon that he could not shift the blame for the Mexican slush fund to the CIA without wrecking the intelligence community.'” (Ibid.; p. 207.)

34. “There is no proof that Bush conveyed any such warning. Moreover, Nixon’s White House chief of staff, H.R. Haldeman, gave a different view in his 1978 book The Ends of Power: ‘If the Mexican bank connection was actually a CIA operation all along, unknown to Nixon, and Nixon was destroyed for asking the FBI to stop investigating the bank because it might uncover a CIA operation (which the Helms memo seems to indicate it actually was all along), the multiple layers of deception by the CIA are astounding.'” (I

dem.)

35. Phillips notes that the intelligence-rated scandals of the 1970’s barely dented the intelligence establishment, which roared back in the 1980’s and 1990’s, with the elder George Bush being first Vice-President and then President. “At any rate, the national security state was only slightly wounded in the sixties and seventies, rebounding to thrive in the eighties and nineties despite a few bumps after the breakup of the Soviet Union, when the CIA briefly feared for its future. More to the point, two men named George Bush would be CIA director, vice president, or president of the United States for seventeen of the twenty-eight years between 1976 and 2004. In a very real but little understood sense, the Bush dynasty was already getting way in 1980-81 when George Bush went from the CIA director’s job to the vice presidency, a jump no one had ever managed before and one that brought a new and unfamiliar mind-set to the elected executive office.” (Idem.)

36. As discussed in FTRs 29, 174, 248, 384, Reagan issued a National Security Directive that put George Bush in charge of an inter-agency governmental network that served as his own private intelligence service. This network was the chief vehicle for effecting both the Iran-Contra and Iraqgate machinations. It is Mr. Phillips’ opinion, (shared by Mr. Emory) that this set the stage for “The Wars of the Texas Succession.” “In 1981, because of Bush’s CIA experience—and perhaps also because of the influence of the White House chief of staff, James A. Baker III, who had managed the Texan’s 1980 nomination campaign—President Reagan issued National Security Directive 3, naming the vice president to head a Special Situation Group to identify national security crises and plan for them. A new era of clandestine arms sales, massive armaments buildups, secret diplomacy, and covert actions, perhaps as much Bush’s doing as Reagan’s, was about to unfold in the Middle East generally and in Iran, Iraq and Afghanistan specifically. With it, the seeds of two Persian Gulf wars and hundreds of terrorist strikes would be fertilized and watered.” (Ibid.; pp. 207-208.)

37. Concluding with Phillips’ thoughts on the influence of Machiavelli’s The Prince on Bush adviser Karl Rove, the broadcast notes the similarity between the signature dishonesty and cynicism characterizing the Bush administration and the power-political advice of the Florentine. “The political thinker Niccolo Machiavelli (1469-1527), long a believer in the famous Florentine Republic of the Renaissance, began to lose faith in his later years as the tides of imperial power and ambition—French, German, and Spanish—swept across the Italian peninsula, washing away the old republican politics of city-states like Florence and Siena, too small to survive on their own. Unlike Machiavelli’s less-well-known books, which embraced republican politics and institutions, his most famous volume, The Prince, was dedicated to Lorenzo de’ Medici, the duke of Urbino. It encapsulated the techniques, from amorality and fraud to religion, by which the ascendant princely rulers might govern most successfully.” (Ibid.; p. 320.)

38. Sun-Tzu is also an influence on the Bush administration. (See Mr. Emory’s thoughts on this in FTRs 366, 418, 442.) “As the 2004 presidential election took shape, another such Machiavellian moment was at hand. U.S. president George W. Bush, while hardly a Medici, was a dynast whose family heritage included secrecy and calculated deception. Harkening to the increasingly imperial self-perception of the United States, the president’s theorists and tacticians boasted of taking the advice of Machiavelli and the Chinese strategist Sun Tzu. The late Lee Atwater, chief political adviser to the elder Bush, and Karl Rove, strategist for the younger Bush, friends and collaborators, wee both devotees of Machiavelli and The Prince, hardly a coincidence.” (Ibid.; pp. 320-321.)

39. “The possibility that the United States could edge toward its own Machiavellian moment in an early-twenty-first century milieu of terrorism, neo-imperialism, and dynastization is not far-fetched. As we have seen, Rove, the Bush dynasty’s own political plotter, has been an avid reader of Machiavelli. While the analysis in The Discourses upholds republicanism, the advice Machiavelli gives in The Prince was dedicated to the Medicis and designed to work in the new princely, aristocratic, and neo-imperial milieu of sixteenth-century Italy.” (Ibid.; p. 330.)

40. “Chapter 4, in its discussion of Bush domestic policy and ‘compassionate conservative’ rhetoric, has already referred to Machiavelli’s advice that the Prince should lie but must ‘be able to disguise this character well, and to be a great feigner and dissembler.’ Moreover, ‘to see and hear him, he [the Prince] should seem to be all mercy, faith, integrity, humanity and religion. And nothing is more necessary than to seem to have this last quality . . . Everybody sees what you appear to be, few feel what you are.'” (Idem.)

41. “Other advice dwells on the merits of fraud, hypocrisy, faithlessness, and related practices, and twentieth-century academicians have noted Machiavelli’s appeal to leaders like Hitler, Stalin, and Mussolini. Doubtless there are also hundreds of copies of The Prince at the CIA. Which makes it revealing, and arguably ill advised, that the two political advisers to the two Bush presidents should claim it as a bible of sorts.” (Idem.)

42. “Even in religion, Machiavelli’s advice to emphasize it is relevant to the early-twenty-first century United States. His career in Florence overlapped that of Friar Girolamo Savonarola, the religious despot who ruled the gasping republic from 1494 to 1498 with a politics of fighting sin and immorality. Doubtless the youthful Machiavelli absorbed how close Savonarola came to achieving a theocracy even in republican Florence. Not a few Americans see a little bit of Savonarola in George W. Bush.” (Idem.)

43. “The advent of a Machiavelli-inclined dynasty in what may be a Machiavellian moment for the American Republic is not a happy coincidence, but one that demands attention. Luckily, the arrival of a U.S. presidential election every fourth year typically brings with it an uncommon intensity of national debate, so perhaps attention will be paid.” (Ibid.; pp. 330-331.)

44. “Since the events and upheavals of 2000-2001, the United States has had an abundance of unfolding transformations to discuss—in economics, national security, and even religion. Of these, many can be considered and managed separately. But one is pervasive enough to make its impact felt almost everywhere: the extent to which national governance has, at least temporarily, moved away from the proven tradition of a leader chosen democratically, by a majority of plurality of the electorate, to the succession of a dynastic heir whose unfortunate inheritance is privileged, covert and globally embroiling.” (Ibid.; p. 331.)

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