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FTR #451 Petals from the Golden Lily

Recorded March 21, 2004
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Pursuing the subject of the fabulous amount of wealth stolen by the Japanese during World War II under Golden Lily (the formal name of the Japanese looting program), this broadcast supplements discussion presented in other ‘For The Record’ programs [4]. Having secreted over $100-billion (in 1940’s dollars) worth of precious metals and gems in the Philippines alone, the Japanese postwar economic largess was founded largely on the plunder garnered from their rape of Asia. The program begins with discussion of Richard Nixon’s decision to turn one of the aggregates of Golden Lily over to Japanese war criminal (and later Prime Minister) Kishi Nobosuke. Nixon agreed to turn the M-Fund over to Kishi in exchange for kickbacks to Nixon’s 1960 presidential bid. In addition, the program describes a number of gold recovery programs undertaken in the Philippines in collaboration with President Marcos: the Japanese recovered much of the buried wealth in the 1960’s and 1970’s; private right-wing elements in the U.S. recovered a lot of the gold; much of the gold appears to have been recovered by off-the-shelf intelligence and military organizations and individuals (the “Enterprise” of Iran-Contra fame). The administration of George W. Bush also appears to have recovered Japanese war gold early in 2001. One of the major focal points of discussion concerns the probability that Nixon’s rapprochement with Red China (“the China Mandate”) was accomplished through the clandestine transfer of $68 billion in gold from the Philippines to Chinese banks in the early 1970’s.

Program Highlights Include: The John Birch Society [5]‘s intention of using Golden Lily treasure to finance their own private vigilante militia; the efforts of “The Enterprise” to use Japanese war gold to finance off the shelf covert operations and their intent to finance their own, private national security establishment; the presence of representatives of then President Ford and former President Nixon in meetings with Marcos devoted to the subject of recovering Japanese war gold; the alleged channeling of some of the Golden Lily treasure into George W. Bush’s private blind trust.

1. This description begins with a chilling look at the death threats and intimidation that the authors of Gold Warriors received over the publication of this and other books. (This passage was not read in the actual broadcast.) “Many people told us this book was historically important and must be published—then warned us that if it were published, we would be murdered. An Australian economist who read it said, ‘ I hope they let you live.’ He did not have to explain who ‘they’ were.”
(Gold Warriors—America’s Secret Recovery of Yamashita’s Gold; by Sterling Seagrave and Peggy Seagrave; Verso [HC]; Copyright 2003 by Sterling Seagrave and Peggy Seagrave; ISBN 1-85984-542-8; p. X.) [6]

2. The program relates the retribution visited on whistle-blowers who had disclosed that gold belonging to Holocaust victims was left in Swiss banks. Note that Carla del Ponte, who charged Jean Ziegler with treason, is a law partne of Pier Felice Barchi, rthe lawyer for Bank Al Taqwa’s Youssef Nada [7]. (FTR #359 highlights Carla del Ponte at some length.) “Japan’s looting of Asia, and the hiding of this war-gold in American banks, is closely linked to the issue of Holocaust gold hidden in Swiss banks. Revealing the secrets of either is a dangerous business. Jean Ziegler, a Swiss professor and parliamentarian, did much to expose five decades of official amnesia in his book The Swiss, the Gold and the Dead [8]. After publishing it and testifying in 1998 before the U.S. Senate Banking Committee about Jewish assets in Swiss banks, he was charged with ‘treason’ by Swiss Federal Prosecutor Carla del Ponte. The charge was brought by twenty-one financiers, commercial lawyers, and politicians of the far right, many of them major stockholders in large Swiss banks. They accused Ziegler of being an accomplice of Jewish organizations who ‘extorted’ vast sums of money from Switzerland.” (Idem.)

3. “Ziegler is only one of many who have been persecuted for putting ethics before greed. Christophe Meili, a Union Banque Suisse (UBS) security guard, was threatened with murder and the kidnapping of his wife and children after he testified before a U.S. Senate committee about documents he rescued from UBS shredders. He and his family were given asylum in America.” (Idem.)

4. The Seagraves relate the threats and harassment they received over the authorship of some of their previous books. “We have been threatened with murder before. When we published The Soong Dynasty we were warned by a senior CIA official that a hit team was being assembled in Taiwan to come murder us. He said, ‘I would take this very seriously, if I were you.’ We vanished for a year to an island off the coast of British Columbia. While we were gone, a Taiwan hit team arrived in San Francisco and shot dead the Chinese-American journalist Henry Liu.” (Idem.)

5. “When we published The Marcos Dynasty [9] we expected trouble from the Marcos family and its cronies, but instead we were harassed by Washington. Others had investigated Marcos, but we were the first to show how the U.S. Government was secretly involved with Marcos gold deals. We came under attack from the U.S. Treasury Department and its Internal Revenue Service, whose agents made threatening midnight phone calls to our elderly parents. Arriving in New York for an author tour, one of us was intercepted at JFK airport, passport seized, and held incommunicado for three hours. Eventually the passport was returned, without a word of explanation. When we ran Freedom of Information queries to see what was behind it, we were grudgingly sent a copy of a telex message, on which every word was blacked out, including the date. The justification given for this censorship was the need to protect government sources, which are above the law.” (Ibid.; pp. X, XI.)

6. “During one harassing phone call from a U.S. Treasury agent, he said he was sitting in his office watching an interview we had done for a Japanese TV network—an interview broadcast only in Japanese, which we had never seen. After publishing The Yamato Dynasty, which briefly mentioned the discovery that is the basis for Gold Warriors, our phones and email were tapped. We know this because when one of us was in a European clinic briefly for a medical procedure, the head nurse reported that ‘someone posing as your American doctor’ had been on the phone asking questions.” (Ibid.; p. XI.)

7. “When a brief extract of this book was published in the South China Morning Post in August 2001, several phone calls from the editors were cut off suddenly. Emails from the newspaper took 72 hours to reach us, while copies sent to an associate nearby arrived instantly. In recent months, we began to receive veiled death threats.” (Idem.)

8. “What have we done to provoke murder? To borrow a phrase from Jean Ziegler, we are ‘combating official amnesia.’ We live in dangerous times, like Germany in the 1930’s when anyone who makes inconvenient disclosures about hidden assets can be branded a ‘terrorist’ or a ‘traitor. . . .'” (Idem.)

1. “Despite the best efforts of the American and Japanese governments to destroy, withhold, or lose documentation related to Golden Lily, we have accumulated thousands of documents, conducted thousands of hours of interviews, and we make all of these available to readers of this book on two compact discs, available from our website [10] so they can make up their own minds. We encourage others with knowledge of these events to come forward. When the top is corrupt, the truth will not come from the top. It will emerge in bits and pieces from people like Jean Ziegler and Christophe Meili, who decided they had to ‘do something.’ As a precaution, should anything odd happen, we have arranged for this book and all its documentation to be put up on the Internet at a number of sites. If we are murdered, readers will have no difficulty figuring out who ‘they’ are.” (Idem.)

9. The broadcast itself began with discussion of then Vice President Richard Nixon’s give-away of the M-Fund [11]. Note that Nixon returned the M-Fund not to the nation of Japan but to war criminal Kishi Nobosuke. This transaction was part of a quid pro quo, in which Kishi and the LDP would kick back some of the money to back Nixon’s bid for the presidency. “America lost control of the M-Fund in 1960 when it was given away by Vice President Nixon, in exchange for Tokyo’s secret financial support of his bid for the U.S. presidency. For more than forty years since then, the M-Fund has remained the illicit toy of seven LDP politicians who have used it to keep themselves in power. Nixon effectively gave them the ultimate secret weapon, a bottomless black bag.” (Ibid.; p. 120.)

10. “President Eisenhower was going to Tokyo to conclude revisions to the Mutual Security Treaty, but his trip was canceled after violent protests in Japan. Instead, Prime Minister Kishi Nobosuke flew to Washington, where the Security Treaty negotiations were conducted by the vice president. Nixon was obsessed by his craving to become president, and was willing to turn over control of the M-Fund, and to promise the return of Okinawa, in return for kickbacks to his campaign fund. Kishi, an indicted war criminal, a key figure in the wartime regime and in hard drugs, munitions and slave labor, thereby gained personal control of the M-Fund. According to Takano Hajime and other well-informed sources, Nixon justified the deal with the dubious excuse that Tokyo needed an emergency covert source of money in the event that war broke out in Northeast Asia. In theory, Japan’s post-war constitution prevented it from creating a new army, so Tokyo could not allocate a huge defense budget—at least not publicly. Nixon argued that full LDP control of the M-Fund would accomplish the same thing covertly. In 1960, the M-Fund was said to have an asset base worth 12.3 trillion Yen ($35-billion). It is important to note that Nixon did not turn the M-Fund over to the government of Japan, but to Prime Minister Kishi personally, putting the lie to his grandiose justifications. So a few months later, when Kishi ceased to be prime minister, he and his clique continued to control the M-fund. It goes without saying that they never used it for the designated purpose, instead turning it into a private source of personal enrichment. . . .” (Idem.)

11. The M-Fund at this point in time included monies from both the Yotsuya and Keenan funds, which had been folded into it. “Until Nixon interfered, the M-Fund was controlled and administered by a small group of Americans in Tokyo close to MacArthur. In 1950, when the Korean War started, most U.S. forces in Japan were rushed to Korea, creating a security vacuum. Because the postwar constitution prohibited setting up a new army, the M-Fund secretly provided over $50-million to create what was characterized as a self-defense force. When the occupation ended in 1952 and Washington and Tokyo concluded their joint security treaty, administration of the M-Fund shifted to dual control, staffed by U.S. Embassy CIA personnel and their Japanese counterparts, weighted in favor of the Americans. The Yotsuya Fund and Keenan Fund were folded into it. The M-Fund’s asset base was being invested in Japanese industry and finance, and the returns were used for political inducements. The M-Fund council interfered vigorously to keep Japan’s government, industry, and society under the tight control of conservatives friendly toward America. This meant blocking or undermining Japanese individuals or groups who wished to liberalize Japanese politics, or unbuckle what Dr. Miyamato Masao called Japan’s ‘straitjacket society.'” (Ibid.; p. 121.)

12. “In 1956, for example, the Eisenhower Administration labored long and hard to install Kishi as head of the newly-merged Liberal-Democratic Party and as Japan’s new prime minister. This was the same Kishi who had been a member of the hard-core ruling clique in Manchuria with General Tojo Hideki and Hoshino Naoki, head of the narcotics monopoly. Kishi had also signed Japan’s Declaration of War against America in December 1941. During World War II, he was vice minister of munitions and minister of commerce and industry, actively involved in slave labor. Along the way, he made a personal fortune in side-deals with the zaibatsu. Following Japan’s surrender, he was one of the most prominent indicted war criminals at Sugamo, where he was a cellmate of Kodama. In 1948, when his release from prison was purchased by Kodama, Kishi began organizing the financial base of the LDP, using Kodama’s black gold and injections of M-Fund cash. For ten years, Kishi was groomed as America’s Boy by Harry Kern, Eugene Dooman, Compton Packenham and other members of Averell Harriman’s group at the America Council for Japan (ACJ). They worked tirelessly to improve Kishi’s mousy image, tutored him in English, and taught him to like Scotch. To them, Kishi was America’s ‘only bet left in Japan.’ All this was done covertly, for if the Japanese public learned that Washington was using the M-Fund to replace one prime minister with another, the democracy fiction would collapse.” (Ibid.; pp. 121-122.)

13. “During Kishi’s term as prime minister (1957-1960) the LDP received $10-million each year directly from the CIA, chiefly from the M-Fund and many other operations in Japan from 1955 to 1958, said: ‘We financed them,’ because the CIA ‘depended on the LDP for information.’ When the party’s coffers were depleted by the monumental effort to get Kishi named prime minister, Finance Minister Sato Eisaku (Kishi’s brother) appealed to Ambassador Doublas MacArthur II (the general’s nephew) for additional secret funds. In July 1958, Ambassador MacArthur wrote to the Department of State, providing details of this request: ‘Sato asked if it would not be possible for the United States to supply financial funds to aid the conservative forces in this constant struggle against Communism . . . This did not come as a surprise to us, since he suggested the same general idea last year.'” (Ibid.; p. 122.)

14. “A few months later, when Nixon renegotiated the Mutual Security Treaty in 1959-1960, he not only gave Kishi the M-Fund, he also promised that when he became president he would give Okinawa back to Japan, while retaining military base rights there. According to sources close to former Prime Minister Tanaka, ‘Nixon told Kishi that if Japan would assist him in becoming president, he would see to it that the U.S. withdrew from its role in managing the M-Fund, and upon his being elected, Nixon would return Okinawa to Japan.’ Accordingly, when Nixon and Kishi concluded the revision of the security treaty in 1960, the M-Fund was turned over to Kishi. And in 1973, when Nixon at last was elected president, he returned Okinawa to Japan. . . .” (Idem.)

15. In the context of Nixon’s dirty deal, it is interesting to contemplate the text of a letter that Jack Ruby smuggled out of prison. In the letter, Ruby hints that Japanese fascists participated in the assassination of President Kennedy. Certainly, elements of what were to become the World Anti-Communist League (including the Asian Peoples Anti-Communist League) were involved. Nixon himself was in Dallas on 11/22/1963 and left shortly before Kennedy was killed. When interviewed by the FBI in February of 1964, he claimed he left on 11/20/1963, despite the fact that a UPI interview that ran in several papers on 11/22/1963 was conducted with Nixon on 11/21 in Dallas—a day after he claimed he left. ” . . . Don’t believe the Warren [Commission] Report, that was only put out to make me look innocent. . . .I’m going to die a horrible death anyway, so what would I have to gain by writing all this. So you must believe me. . . . that [sic] is only one kind of people that would do such a thing, that would have to be the Nazi’s [sic], and that is who is in power in this country right now. . . . Japan is also in on the deal, but the old war lords are going to come back. South America is also full of these Nazi’s [sic]. . . . if those people were so determined to frame me then you must be convinced that they had an ulterior motive for doing same. There is only one kind of people that would go to such extremes, and that would be the Master Race. . . .”
(The Man Who Knew Too Much; Dick Russell; Carroll & Graf [HC]; Copyright 1992 by Dick Russell; ISBN 0-88184-900-6; p. 684.) [12]

16. Much of the Japanese Golden Lily loot that was stashed in the Philippines was eventually recovered by Japanese fascists, working in tandem with Ferdinand Marcos. “Only in the mid-1960’s, when Ferdinand Marcos began making onshore and offshore recovery deals with the Japanese, was official hostility relaxed, and Japanese began coming back to the Philippines in significant numbers to hunt for treasure. Small groups came to the Cagayan Valley every year. One team searched around the Bambang cemetery that included Tunnel-8 and Tunnel-9. Ben did not recognize anyone in the group. One day they were gone. Villagers found a tree by the cemetery that had been cut down during the night with a chain saw, exposing the inside of the tree trunk. There they clearly saw where several gold bars had been hidden, leaving their impression in the wood as the tree grew around the bars.” (Ibid.; p. 158.)

17. “At the end of 1968, President Marcos sent a team to Tokyo to make a deal for more effective joint recoveries. The team included Lieutenant Colonel Florentino Villacrusis, a senior intelligence officer; Brigadier General Onofre T. Ramos, comptroller of the Philippine armed forces; and two other officers. Their mission was to acquire a set of Golden Lily treasure maps in return for a share to Japan of whatever Marcos recovered. If Tokyo did not cooperate, Marcos warned that he would close down Japanese companies all over the islands.” (Idem.)

18. In his first two years as president, Marcos had authorized offshore recoveries by a syndicate of Japanese and Korean gangsters, headed by Kodama and Machii Hisayuki, head of the Tosei-kai. Another partner was billionaire fixer Sasakawa Ryoichi, another of Kodama’s Sugamo Prison cellmates, who staged speedboat races, one of Japan’s favorite betting sports and a convenient way to launder money. His true wealth came from secret deals with President Sukarno and President Marcos to share in the recovery of war loot in Indonesia and the Philippines. ‘I was very close to Marcos,’ Sasakawa told journalists, ‘long before he became president.’ He pointed Marcos at several sites, including the sunken cruiser Nachii in Manila Bay, and in return was allowed to build cemeteries and memorials for Japanese war dead in the Philippines, on property that just happened to include Golden Lily sites. ‘I personally donated the biggest cultural hall in [the Philippines]’, Sasakawa boasted, ‘as well as supplied the cement.’ Forty thousand sacks, to be precise.” (Ibid.; pp. 158-159.)

19. In the decades following the conclusion of hostilities in the Pacific, there have been periodic reports (and discoveries) of Japanese soldiers continuing to resist in some of the islands in the Pacific. One of those soldiers was a Japanese lieutenant who had been specifically instructed to protect Golden Lily treasure sites on the island of Lubang. “In 1974, Takeda flew to the Philippines when a Japanese straggler, Second Lieutenant Onoda Hiroo, was discovered hiding on 74-square-mile Lubang Island, 70 miles southwest of Manila Bay. Back in 1945, all but three Japanese soldiers on Lubang had been killed or surrendered during a four-day battle with the Americans. Onoda and two comrades fled into the jungle and for the next thirty years kept up sporadic guerrilla warfare. In the 1950’s, leaflets were dropped telling them the war was over, but they thought it was a trick. Both of Onoda’s companions eventually died of tropical diseases, and Onoda himself was declared legally dead in Japan. Lubang villagers said otherwise. When a young Japanese named Suzuki Norio tracked Onoda down in the jungle in February 1974, he still carried his rifle, 500 rounds of ammunition, and several hand grenades.” (Ibid.; p. 166.)

20. “Onoda refused to surrender unless released from duty by his commanding officer. Ben heard all about Onoda from television news. He knew Onoda personally, having spent weeks on Lubang during the war with Prince Takeda, closing a treasure vault. Ben knew it was Takeda who had ordered Onoda to guard the site at Lubang, so only the prince himself could rescind the command. A few weeks later, a group of Japanese officials arrived in the Philippines to persuade Onoda to surrender. Attention was focused on Major Taniguchi Yoshima, who was presented to TV audiences as Onoda’s commanding officer. But among the Japanese delegation in the background, Ben saw Prince Takeda’s unforgettable face and knew that he had come personally to release Onoda from his oath. A few days later, Onoda returned to Japan. (Claiming that he could not adjust to life in modern Japan, Onoda was then sent to Brazil, to a big Japanese-owned ranch in the Mata Groso. There bodyguards made sure nobody came to quiz him about the Lubang treasures, until they were recovered.)” (Idem.)

21. “The Lubang recovery was done by Sasakawa, under the guise of developing Lubang into a resort for wealthy Japanese tourists. Sasakawa said he was doing this ‘at the request of Marcos.’ Eventually, when hotels and golf courses had been built, the resort was stocked with African wild game and exotic birds for rich Japanese hunters, who were provided with young male or female ‘private companions’ for sexual sport. At the same time, President Marcos made Sasakawa an honorary citizen of the Philippines, in recognition of his many donations to Imelda’s highly-publicized relief projects, and for his efforts to pave over residual ill-feeling about the war by establishing the Japan-Philippines Friendship society. Nothing ws said of Sasakawa sharing war loot with Marcos.” (Idem.)

22. Eventually, Marcos enlisted an American mining engineer and metallurgist—Robert Curtis—to help with the recovery of Golden Lily treasure. In one of the encounters during which the recovery was planned, Curtis saw representatives of former President Nixon and then-President Ford in attendance. It was not clear whether these representatives were acting in a private or a public capacity. “On March 11-12, 1975, he [Marcos] took [Robert] Curtis and other guests on a night cruise aboard the presidential yacht, a converted minesweeper. The ship took a hundred guests around Manila Bay while there was a banquet, followed by a dance. When the dance ended at midnight, the guests were dropped at the bay front, and the yacht cruised out into Manila Bay again with only the core members of the Leber Group and several foreign visitors. In addition to Robert Curtis, Olof Jonsson, and Norman Kirst, Curtis remembers ‘an aide [former] President Nixon’ and ‘an aide to President Ford’ who took part in these secret meetings about the recovery of war loot. Nixon had resigned seven months earlier, succeeded by Ford. The Republican Party seemed likely to lose the 1976 presidential election because of the Watergate scandal. From the presence of the two aides, Curtis guessed that both Nixon and Ford somehow were participating in Marcos gold recoveries. Curtis wondered whether the two aides were government agents, or representing Nixon and Ford privately.” (Ibid.; p. 171.)

23. One of the most interesting and important of the avenues of investigation opened by the Seagraves in their remarkable book concerns the alleged use of Golden Lily loot to precipitate the rapprochement between the US and China. The Seagraves relate that (allegedly) some of the Philippines loot was used to shore up the faltering economy of the Peoples Republic of China, staving off the possibility of war with the US and leading to Nixon’s China Mandate—the resumption of diplomatic relations between the US and China. “One deal said to have resulted is the so-called China Mandate. Our Marcos family source insists that in 1972 President Nixon and Henry Kissinger made a secret deal with Premier Chou En-lai to keep China out of conflict with the United States over Taiwan, in return for access to a large quantity of gold provided by Marcos. We have not been able to confirm the political details. However, bank documents that have surfaced over the years clearly demonstrate that large quantities of gold bullion were moved into Chinese mainland banks during this period, including bullion accounts in the names of Santa Romana, Ferdinand and Imelda Marcos, and other members of their family and circle of rich cronies. Since all these people were loudly anti-communist, there is no plausible reason for them to transfer gold bullion to Chinese banks in the midst of the Cold War. For that reason alone, the story may well be true.” (Ibid.; p. 192.)

24. “According to this source, in 1971-72 the economy of the People’s Republic was in very bad shape, its foreign currency reserves were flat, aggravated by the world-wide oil crisis and famine in the countryside, all of which is correct. As pressure mounted on the Politburo, party hawks gained a stronger voice, pushing for invasion of Taiwan to gain control of its assets, and as a much-needed distraction. CIA and Pentagon analysts concluded that Beijing was about to invade, while America had its hands full in Vietnam. This could lead to nuclear war. A way had to be found to defuse the situation, and a novel solution proposed by a CIA analyst was to help Beijing stabilize its economy with a huge infusion of black gold from Marcos, reducing the pressure for war. If America helped China out of this domestic crisis, it could bring a period of peace that would benefit the Philippines as well.” (Ibid.; pp. 192-193.)

25. “As our source tells it, Nixon and Kissinger secretly offered Beijing $68-billion in gold (an amount they knew Marcos had), to be moved into PRC banks in a number of tranches over several years. This would not be an outright gift. It would be deposited incrementally in various PRC banks in Hong Kong and major cities inside China. There the bullion would remain as an asset base, earmarked for various purposes negotiated in advance. The Chinese banks would be strengthened, the PRC economy would be stabilized, moderates in the Politburo would regain their leverage, and hawks pushing for an invasion of Taiwan would be silenced. No U.S. funds were involved.” (Ibid.; p. 193.)

26. ” ‘It was only Japanese war loot,’ our source said, ‘recovered by Marcos, being put to good use.’ Chou En-lai, ever a pragmatist, reportedly pushed it through. The temptation for Marcos to agree was great; he would be fully supported by Washington, and rewarded in many ways. The White House sweetened the deal by assuring Marcos that he and Imelda could make state visits to Beijing, which would enhance their stature throughout the world. Additionally, Beijing would reciprocate by providing agricultural aid to the Philippines.” (Idem.)

27. “In 1974, Imelda and her son Bong-Bong did make a state visit to Beijing, where they were photographed grinning goofily with a startled and frail Mao Tse-tung clamped between them, one of the strangest photographs of Mao ever made. Ferdinand went to Beijing the following year, a curious thing for him to do as an outspoken Cold Warrior. In a subsidiary development, Imelda’s brother Kokoy Romualdez, noted more for his loyalty than for his intelligence, became Manila’s ambassador to Beijing.” (Idem.)

28. “Our Marcos source insists the China Mandate was the foundation for Nixon’s historic visit to China and establishment of diplomatic relations with the Peoples Republic. Documents do show that beginning in 1972 and continuing over a period of years, Marcos gold was moved to PRC-owned banks including Po Sang Bank and Bank of China in Hong Kong, and to other Chinese banks in Xiamen. Documents from those banks show very large accounts in the names of Santa Romana, Ferdinand Marcos, Imelda Marcos and others. Among related documents we reproduced on our CD’s are letters from gold brokers asking for commissions to be paid after these transfers were successfully carried out. The Marcos family and wealthy friends subsequently traveled to Xiamen to inaugurate a new building for the PRC bank holding these accounts. Xiamen is adjacent to Amoy, home of the Hokkien dialect group long associated with the natural father of Ferdinand Marcos.” (Idem.)

29. “Further evidence came in 2000, when Imelda was accused by Hong Kong government authorities of hiring a Chinese woman to obtain access to some of these gold accounts by bribing bank officials. In December 1999, according to Hong Kong government prosecutors. Imelda agreed to pay the bounty hunters 35 percent to recover $2.5 billion from accounts at Bank of China, HSBC, and PRC banks in Xiamen. Imelda’s lawyers said she was only trying to raise money to help the poor. When news then came of yet another secret Marcos bullion account at UBS in Switzerland, containing $13.4-billion, Imelda sighed, ‘I wouldn’t be surprised. I know we used to have money.'” (Ibid.; pp. 193-194.)

30. “When the existence of these bullion holdings in China was revealed, nobody seemed at all curious how they came to be there, some since the early 1970’s when the Cold War was still on. Nobody connected them to Nixon’s 1972 state visit to Beijing.” (Ibid.; p. 194.)

31. Next, the program highlights the role of the John Birch Society in recovering Golden Lily treasure from the Philippines in tandem with the above-mentioned Robert Curtis. Note that the funds were going to be used to finance a private, right-wing vigilante force [5]. “When the Hunt Brothers were trying to corner the world’s silver production in the early 1970’s,’ Curtis told us, ‘they sent Colonel Herbert F. Buccholtz to me . . . later came Jerry Adams . . . Robert Welch, founder of the Birch Society; Congressman Larry McDonald, and Jay and Dan Agnew, and Floyd Paxton.'” (Ibid.; p. 174.)

32. “The Birch Society was started in 1958 by a group of wealthy businessmen and far right politicians convinced that every closet in America contained communists, Jews, wetbacks, Afro-Americans, liberals and homosexuals. The Birchers also were dedicated gold and silver bugs. They had a longstanding grudge against U.S. presidents, starting with FDR, who had intervened to make private ownership of gold in America a crime, with penalties of heavy fines, confiscation and imprisonment. They also believed that Nixon had sold the United States down the river twice—first by taking America off the gold standard, second by his recognition of Red China. On the other hand, Nixon’s actions made it possible for the first time since 1933 for Americans to purchase and own gold legally. So Nixon opened up avenues for the Birch leadership to acquire gold overseas, and sneak it into America through the back door of Canada, where it added to the Society’s fund for anti-communist activities. Like other ultra-conservative groups in America and individuals like General Lansdale—one of their own—who had been forced out of the CIA and Pentagon by liberals, the Birchers had a long-term strategy to create their own right-wing vigilante force. Not something crude like Hitler’s Brown Shirts or Gestapo. More like a private FBI, assisted by elite private military forces. [Italics are Mr. Emory’s]. This would cost money, hence the need for large amounts of privately held gold.” (Ibid.; pp. 174-175.)

33. “Although he was a conservative, and a patriot, Curtis was not a Bircher. But he shared their fascination with precious metals. Once he joined the Marcos gold hunt, Curtis told the Birch Society board confidentially about the hidden Japanese loot. He described his role in the Leber Group, and his participation with Marcos in sanctifying the gold, and in finding discreet channels to market it.” (Ibid.; p. 175.)

34. “Curtis did not realize that the inner circle of the Birch leadership already knew about the Santa Romana recoveries, and the role of Robert B. Anderson and John J. McCloy in setting up the Black Eagle Trust. They also knew about the roles of Generals MacArthur, Whitney and Willoughby in the M-Fund, and all the financial manipulations in postwar Tokyo. They knew this because one of the founding members of the Birch Society was Colonel Laurence Bunker, a humorless fellow who had succeeded General Bonner Fellers on MacArthur’s personal staff in Tokyo. Bunker became MacArthur’s chief aide and spokesman in Tokyo from 1946-1951—the years of witch-hunting in Japan that made the McCarthy witch-hunts in America look bland.” (Idem.)

35. “The Birch Society money men who arranged the loan for Curtis were Washington State senator Floyd Paxton and his son Jerry, who ran Kwik Lok corporation, makers of the ubiquitous plastic clips used to close plastic bags in supermarkets. Another participant, Curtis said, was Jerry Adams of Atlanta, head of the Great American Silver Corporation, a precious metals company associated with the Hunt brothers. Curtis said he was informed by Congressman McDonald and Robert Welch that the loan for Curtis to work with Marcos had been ‘cleared’ by them personally. They told Curtis he was to deal directly with multi-millionaire Samuel Jay Agnew, who sat on the national council of the Birch Society.” (Idem.)

36. In addition to the Birch Society, it appears that other private right-wing interests also recovered large amounts of Golden Lily loot from the Philippines. “Private” is a questionable term, however, because the interests described below are inextricably linked with elements of the National Security Establishment. It is of particular significance that people associated with the Enterprise were involved with this apparent recovery. (The Enterprise was at the epicenter of Reagan/Bush covert operations of the 1980’s, including the Iran-Contra and Iraqgate affairs.) Many people from this milieu are in prominent positions in the administration of the second George Bush. It is worth noting that the Golden Lily treasure may well have been a contributing factor to the growth of private military firms and private intelligence organizations—one of the major constellations in the contemporary national security firmament. “Once it was proved in U.S. courts that massive gold shipments did come out of the Philippines during the twenty years Marcos was president—gold that did not originate in the Central Bank, or in mines like Benguet—the remaining mystery is where did it go?” (Ibid.; p. 186.)

37. “To be sure, the gold was shipped covertly, usually after re-smelting in Manila by Johnson-Mathey Chemicals, using equipment Marcos stole from Robert Curtis. Before it left Manila, some was re-papered by Johnson-Mathey Bank, then made its way to buyers throughout the gold pools in New York, Zurich and London. Other black bullion was sold privately to Saudi princes, and Middle Eastern syndicates, or to discreet groups of Europeans through Luxembourg and Liechtenstein.” (Idem.)

38. “Documents including waybills show that some shipments went to America aboard commercial ships and planes, while others went out on CIA aircraft to Hong Kong or to an American military base in Australia. So far as anyone can tell, the gold that went to America did not end up in Fort Knox. If it did, the U.S. Government is not admitting it. So where did it go? Who was shielding and helping Marcos, other than the CIA and Pentagon? Who else benefited from all this recovered plunder? Was the leverage of the federal government used to get some of this gold bullion into private hands?” (Idem.)

39. “The answer is that Marcos had connections beyond the CIA, to a shadowy network called The Enterprise, a cluster of private intelligence organizations (PIO’s) and private military firms (PMF’s). These were staffed by former CIA and Pentagon officers who saw themselves as Paladins of the Cold War. Many PIO’s and PMF’s got their start in the 1970’s during shakeups at the CIA. They mushroomed in the 1980’s after Jimmy Carter stirred up the anthill, and strongly motivated men had to continue their careers elsewhere.” (Idem.)

40. “At the end of 1972, when he replaced Richard Helms as CIA director, James Schlesinger made it clear that he intended to forcibly retire hundreds of agents who were dead wood, or part of a Dirty Tricks clique under Helms long engaged in operations that violated American laws, including assassinations. When it then became known that the CIA was involved in the Watergate break-in and other domestic break-ins, Schlesinger ordered an internal investigation and preparation of a complete list of all Agency projects that might embarrass the government. The resulting 693-page report, called ‘the Family Jewels’, led to leaks about assassination programs like Mongoose, death squads like Phoenix, and other wet-work hidden by national security. Over a thousand CIA agents were sacked or obliged to take early retirement.” (Ibid.; pp. 186-187.)

41. “When Nixon resigned, President Ford set up the Rockefeller Commission to investigate CIA wrongdoing, but staffed it with hardline conservatives who would avoid revealing things that would ‘blacken the name of the United States and every president since Truman.'” (Ibid.; p. 187.)

42. “Congressional hearings into Phoenix, the Lockheed bribery scandal, and later Iran-Contra, resulted in additional housecleaning at CIA and the Pentagon. Added to these purges were disputes between CIA officials like Ray Cline and President Nixon over rapprochement with China, and between Jimmy Carter and top military officers like major General John Singlaub, and Air Force General George Keegan. When Carter got rid of so many professional soldiers and spooks, he does not appear to have given much thought to what they might do to keep busy in private life. No Roman emperor would have been so careless in disbanding a legion.” (Idem.)

43. “Many of these clever and aggressive men regrouped privately, with funding from hard-right organizations like the Birch Society, Moonies, World Anti-Communist League, and wealthy conservative tycoons. Like Santy’s Umbrella organization, The Enterprise grew into a powerful and influential network during the late 1980’s. Although they were now private citizens, these men continued to have close ties to serving military officers, to top men in the CIA and the armed services. This overlap made it nearly impossible to distinguish between official U.S. Government operations and those that had private objectives. This was especially true because so many of these individuals had long experience in covert operations, deception, and the clandestine use of government resources and secret funds. They were accustomed to working with CIA proprietaries that had every appearance of being legitimate companies in private industry but were actually Trojan Horses for the intelligence community and, by extension, for the armed forces. In fact, some of the PMF’s were little more than fronts set up so that generals, admirals, and former spooks could continue to draw salaries and pensions as if they had never left government service. Many CIA agents spent years or even decades under various covers, so it was hard to establish beyond any doubt whether they ever left the Agency, or merely went underground.” (Idem.)

44. The authors allege that William Casey may well have been a recipient of these monies. Casey was a major player in the postwar intelligence community and a pivotal figure in the Reagan and first Bush administrations, and was particularly close to the Bush family. “A perfect example is William Casey. Casey was one of the original OSS crowd. After law school, he went to work for an accounting firm but kept in touch with fellow lawyer John ‘Pop’ Howley, who worked for Wild Bill Donovan’s law firm, Donovan Leisure Newton & Irvine. When Donovan became head of OSS, Casey and Howley joined him. Casey was John Singlaub’s case officer in the war, while Paul Helliwell was Singlaub’s direct superior. Casey also was a close friend of Allen Dulles and John Foster Dulles, worked with Ray Cline, and became involved with Lansdale as Santa Romana’s torture of Major Kojima was bearing fruit. This put Casey in a position to know a great deal about the Black Eagle Trust, and one source insists that Casey’s financial skills made him one of the key players, along with Paul Helliwell and Edwin Pauley, in implementing the Black Eagle Trust under the guidance of Robert B. Anderson and John J. McCloy. Following the war, Casey and his old friend Howell founded their own Wall Street law firm. But what made Casey really wealthy was his involvement with other former intelligence officers in setting up the media holding company Capital Cities, in 1954. According to many investigators, during this period the CIA poured millions into setting up front companies for covert operations in broadcasting and publishing, and it is alleged that Casey funneled some of these funds into Capital Cities to acquire failing media companies and turn them around. It is likely that Casey never left the Agency, but only moulted into one of its financial butterflies. It would not be the first time a senior CIA agent has had a double career on Wall Street, Allen Dulles being but one of many others. From 1971-1973, Casey ws Nixon’s appointee as chief of the Securities and Exchange Commission, where he worked closely with SEC attorney Stanley Sporkin (later appointed by Casey as CIA general counsel, and involved in the Schlei case.) Casey also served as Nixon’s Under-Secretary of State for Economic Affairs, and chairman of the Export-Import Bank. In 1978, Casey founded a think tank called the Manhattan Institute that absorbed a number of former CIA officers, and funneled money from conservative foundations to conservative authors. When Casey left Capital Cities to head the Reagan presidential campaign and then to become Reagan’s director of the CIA, he is said to have been its biggest single stockholder with $7.5-million in Capital Cities stock. He was still its biggest stockholder, and CIA director, in 1985 when Capital Cities bought ABC.” (Ibid.; pp. 187-188.)

45. “A man who was involved in covert financial operations throughout his entire career, Casey had links to all the key players in this book; his DNA is all over the place, from pre-Santy to post-Marcos. He was one of the men who dreamed up the privatization of the CIA, and as CIA director he showed President Reagan how to implement it.” (Ibid.; p. 188.)

46. “One of Reagan’s first acts was to sign Executive Order 12333, which authorized the CIA and other government agencies to enter into contracts with PMF’s, ‘and need not reveal the sponsorship of such contracts or arrangements for authorized intelligence purposes.’ This put Casey back in harness with Cline, Singlaub, Shackley, Lansdale and many others purged earlier, while obscuring their activities keeping them—theoretically at least—in the private domain. Simultaneously, Casey personally took over handling President Marcos, pressing him to provide black gold for covert purposes, and finally masterminded the downfall and removal of Marcos, and his bullion.” (Idem.)

47. Concluding the broadcast, we look at indications that Golden Lily gold may well have been recovered in the early months of George W. Bush’s administration. Some of this gold allegedly was used to shore up the U.S. gold reserves—in and of itself a commendable use for this Axis loot. “In March 2001, only weeks into the new Bush Administration, two U.S. Navy ship arrived in the Philippines carrying teams of SEAL commandos. According to a source at the U.S. Embassy, they were sent to the Philippines to recover gold as part of a plan to enlarge America’s reserves. This gold, the embassy source said, would come from two places:–New excavations of Yamashita Gold vaults, and the purchase (at a deep discount) of Japanese loot already recovered and held in private vaults by wealthy Filippinos. One of the two ships sailed on to Mindanao to take on a load of bullion the embassy source said was owned by the family of the new president, Gloria Macapagal Arroyo. President Bush, the source said, was ‘being aggressive.'” (Ibid.; p. 235.)

48. Unfortunately, some of the gold may have been appropriated by agents operating on behalf of George W. Bush. The broadcast concludes with examination of the possibility that some of the gold was included in George W. Bush’s blind trust. That trust is managed for him by William Stamps Farish—a close associate of the Bush family and the descendant of one of the Standard Oil magnates who arranged some of that company’s agreements with I.G. Farben. (FTR#370 [13] examines the inclusion in W’s blind trust of funds derived from the Bush family’s involvement with the Nazis.) “The buzz among gold hunters in Luzon was that associates of President Bush and his family were privately in the market to buy some of the bullion still being recovered from Golden Lily sites. One of the names were being dropped by goldbugs in Manila was that of East Texas oil billionaire William Stamps Farish, an intimate friend and fishing companion of the Bush family. Will Farish, who raises horses in Kentucky and is board chairman of Churchill downs where the Kentucky Derby is staged, had just been nominated by President Bush to be America’s new ambassador to the Court of St. James’s, where he was a personal friend of Queen Elizabeth. The buzz had special resonance because Will Farish is said to be the manager of President Bush’s blind trust.” (Idem.)