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COMMENT: Insight into how what Peter Dale Scott calls “The American Deep State” operates can be gleaned from one of the political derivatives of CIA-supported drug traffic in Southeast Asia.
U.S. Ambassador to Thailand (and former OSS chief) William “Wild Bill” Donovan worked with OSS and CIA operative Paul Helliwell to distribute the laundered profits of Agency-backed drug operations to members of Congress, with Donovan gifting Republicans and Helliwell supporting Democrats.
. . . . At the time of the Marshall Plan slush fund in Europe, the CIA also took steps which resulted in drug money to support anticommunist armies in the Far East. In my book American War Machine, I tell how the CIA, using former Office of Strategic Services (OSS) agent Paul Helliwell, created two proprietary firms as infrastructure for a Kuomintang (KMT) army in Burma, an army which quickly became involved in managing and developing the opium there. The two firms were Sea Supply Inc. in Bangkok and CAT Inc. (later Air America) in Taiwan. Significantly, the CIA split ownership of CAT Inc.’s planes with KMT bankers in Taiwan. This allowed the CIA to deny responsibility for the flights when CAT planes, having delivered arms from Sea Supply to the opium-growing army, then returned to Taiwan with opium for the KMT. Even after the CIA officially severed its connection to the KMT Army in 1953, its proprietary firm Sea Supply Inc. supplied arms for a CIA-led paramilitary force PARU, that also was financed, at least in part, by the drug traffic.
Profits from Thailand filtered back, in part through the same Paul Helliwell, as donations to members from both parties in Congress. Thai dictator Phao Sriyanon, a drug trafficker who was then alleged to be the richest man in the world; “hired lawyer Paul Helliwell . . . as a lobbyist in addition to [former OSS chief William] Donovan [who in 1953–1955 was U.S. Ambassador to Thailand]. Donovan and Helliwell divided the Congress between them, with Donovan assuming responsibility for the Republicans and Helliwell taking the Democrats.” . . . .
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