The Chinese Connection: US Weapons & High Tech Graft

almartinraw.com

The Conspirators:
Secrets of an Iran-Contra Insider
by Lt. Cmdr. Al Martin (US Navy, Ret.)
Copyright 2000, Al Martin. All Rights Reserved

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Table of Contents
Chapter 1 Confidential File: Alexander S. Martin……………………………………………….…3
Chapter 2 The NPO and Operation Sledgehammer……………………………………………. 14
Chapter 3 Oliver North: The Money Laundering Drug Smuggling “Patriot”……. 26
Chapter 4 “Do Nothing” Janet Reno and Iran-Contra Suppression………………..….. 42
Chapter 5 Classified Illegal Operations: Cordoba Harbor and Screw Worm ……..50
Chapter 6 The Don Austin Denver HUD Fraud Case …………………………………..….. 66
Chapter 7 Bush Family Fraud & Iran-Contra Profiteering ……………………………… 72
Chapter 8 Insider Stock Swindles for “The Cause”…………………………………………….89
Chapter 9 Corporate Fraud, Stock Fraud and Other Scams………………………………106
Chapter 10 The Tri-Lateral Investment Group – Bush Family Fraud…………………. 114
Chapter 11 Lawrence Richard Hamil: The US Government’s Con Man…………… 122
Chapter 12 US Government Narcotics Smuggling & Illicit Weapons Sales……… 136
Chapter 13 US Government Sanctioned Drug Trafficking ……………………………….. 141
Chapter 14 The Chinese Connection: US Weapons & High Tech Graft…………….. 156
Chapter 15 More Iran-Contra Stories: Both Humorous & Salient …………………… 171
Chapter 16 Chinese Money for US Weapons …………………………………………………….185
Chapter 17 US Government Narcotics Smuggling (Part 2) ……………………….… 192
Chapter 18 In Hiding Again ……………………………………………………………………………..209
Chapter 19 Corporate Fraud, Government Fraud and More Fraud……………………224
Chapter 20 The Real Story of Operation Watchtower…………………………………………234
Chapter 21 KGB & East German Activities in the US (1985-87)…………………………..240
Chapter 22 The Woman in Red (And Black)…………………………………………………………252
Chapter 23 Bush Family Corporate, Real Estate, and Bank Frauds…………………….260
Chapter 24 Iran-Contra Real Estate Fraud…………………………………………………………..277
Chapter 25 More Chinese-Military Connections…………………………………………………288
Chapter 26 ONI, CZX & Orpheus. ………………………………………………………………… 295

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1. CONFIDENTIAL FILE: ALEXANDER S. MARTIN

• Born 5-19-54, Oberammergau, West Germany, Federal German Republic.
• Mixed German and American parentage.
• Returned to United States 09-Aug-1957.
• Graduated Masconoma Technical School, 16-May-1972.
• Full ROTC training then available at high school level.
• Graduated with certificates in electronics and communications equipment, as well as a
  Level 05 Certificate in Russian Languages.
• Subject joined the United States Navy, 19-May-1972.
• Sent to China Lakes Naval Air Station to complete basic training and for further
  training in electronics and communications.
• Subject MOS – 16-Sep-1972.
• At subject’s request, TDY’d 03-Oct-1972 Naval Communication Center, Saigon, South
  Vietnam.
• Remained in South Vietnam theater until cessation of naval and air hostilities on 27-
  Aug-1973.
• On 04-Sep-1973, subject again, and on request, TDY’d Subic Bay, Pacific Theater of
  Operations Naval Command Center.
• Discharged honorably United States Navy 19-May-1976.
• Immediately thereafter joined United States Naval Reserves, Active Status.
• Rremained United States Naval Reserves active status doing two tours.
• Transferred and relisted, inactive service United States Naval Reserves.
  19-May-1984,
• Subject retires United States Naval Reserves 19-May-1988 at the Reserve Officers Rank
  of Lt. Commander.

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After my discharge from active naval duty service in 1976, I moved to Cuzco, Peru,
and set up a business with a childhood friend, George W. Carver III, son of then CIA
Deputy Director, George W. Carver Jr.
The business dealt in alpaca, llama, and vicuna, but was actually a cover, as a “G” for
the State Department.
My assignment at the time was to gather intelligence on Russian military operations
in Peru.
At the time, Peru was officially pro-Moscow. It was armed by Moscow and had
about 4,000 Russian army advisors in the country.
I remained in the country until September 9, 1977, the coup of Gen. Hector Bermudez
and the installation of civilian President, Fernando Terry. At that time I returned to the
United States, initially settling in Miami.
While in Peru, I became acquainted with numerous CIA field agents and support
personnel, then being run out of CIA’s Lima station. These included Deputy CIA
Station Chief Eugene S. Barlow, more commonly referred to as “Buzz” Barlow, whose
claim to fame had been that he had secretly recruited Vladimiro Montesinos, a
Peruvian army officer, who then in turn developed an intelligence network that
informed on Russian Army and Soviet KGB movements within Peru.
An interesting footnote to this is that eight years later, Montesinos would become a
double agent working for the KGB. He was being run by then Assistant Deputy KGB
Director, Major Yuri Shvets, whose cover was Commercial Trade Attache for the Soviet
Embassy in Washington.
Barlow would play an important role in Iran-Contra, particularly in the post 1983
environment and would finally finish up his career as a senior FBI agent at the Tulsa
field office.
Subpoenaed before Congress in 1987, Barlow either refused to answer, or answered “I
don’t know” 117 times when asked about his Iran-Contra role.
In 1978, I met Lawrence Richard Hamil, a Department of Defense shadow player, a
hanger-on as many are, who wait for profitable covert operations.
His father was the well-known Harry J. Hamil, former senior Defense Department
policy analyst of their southern desk before his death of natural causes in 1984.
Hamil and I and others including Frank Snepp, Jack Terrell, Harry Aderholt, Landon
Thorme, Duke Rome, and a host of other players in the shadows of Washington,
became involved in a scheme in 1979 to traffic in American Express credit cards in
Argentina on behalf of the American Express Corporation.

14. The Chinese Connection: US Weapons and High-Tech Graft
    The final report of the Congressional Select Committee, chaired by Christopher Cox
    of California, has been released.
    His co-chairman, Nelson Dix of Washington, is a Democrat but essentially controlled
    by Republican interests, who’s very close to the defense industry within the State of
    Washington.
    They have released this report, wherein they mention that illicit transfers of high
    technology American weapons in exchange for political money have been going on for
    over twenty years.
    Of course, they just mention it as a matter of state policy.
    In their draft report, they mention only two defense contractors — Loral and Hughes
    Electronics. The only reason these two were mentioned is because they have already
    been previously exposed vis-a-vis the illicit transfer of high technology weapons to

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China.
However, no mention was made of political money in exchange for Department of
Commerce permits allowing these defense contractors to export weapons and
technology.
Furthermore, no other defense contractors were mentioned in the draft report of the
Select Committee.
This report will now go over to the Defense Intelligence Oversight Committee, which
is investigating criminal matters vis-a-vis this very same subject pursuant to subpoenas
said committee issued to high-ranking military personnel in and around the Redstone
Arsenal in Huntsville, Alabama.
What the Select Committee has claimed in their findings is that the relationship vis-avis
technology transfers of weapons has existed for approximately twenty years.
That is approximately correct, by the way.
They also mention the importance of Pakistan and Israel and a few other nations in
this trade. However, they fail to tackle the subject from the very beginning.
So for the purposes of this discussion, we will have to consistently digress so that the
reader can understand the geopolitics of the relationship between the United States and
the People’s Republic of China, particularly from 1977 to 1979, when these illicit
technology transfers began to occur.
What the report fails to include is the original importance of Pakistan as a surrogate
arms merchant for the United States in the beginning of this period, 1978.
We must now remember the time frame and what was happening at that time, what
the United States geopolitical and geomilitary policy was at that time vis-a-vis both the
Soviet Union and the Peoples Republic of China.
You may remember that in 1977, President Carter delinked the United States from
Taiwan by withdrawing diplomatic relationship with Taiwan, ostensibly to seek an
increased trade relationship with the China.
At the same time he extended, in a confidential protocol, certain military guarantees
to Taiwan.
This was walking a fine line, and President Carter knew that it was an immensely
unpopular decision, particularly within conservative quarters where Taiwan had been
considered a traditional ally of the United States.
This had particularly been true in Republican administrations of the past.
At the time Prime Minister Ali Bhutto of Pakistan, whom the United States had
initially supported, began to waver vis-a-vis the protocols he had established with
Washington in exchange for both economic and military aid.

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In late 1977, Bhutto began a rapprochment with India and a rapprochment with the
Soviet Union taking the traditional Pakistani policy, a regional economic, political
economic, and military policy, in absolutely the opposite direction of what it had
traditionally been.
In other words, Pakistan had been a de facto political, economic and military vassal
state of the United States, which it was then and it still is today.
Ali Bhutto, in doing this perhaps failed to appreciate the power of the CIA in Pakistan
at the time — and continuing to this day.
The CIA has substantial assets in Pakistan. At that time, in late 1977 and early 1978,
the CIA was very influential and very closely aligned with the Pakistani military.
As Ali Bhutto increasingly began to ignore the wishes of the United States, vis-a-vis
U.S. theater policies in the Indian sub-continent, the CIA quietly started to encourage
the Pakistani military, then under the command of Chief of Staff, General Zia el Haq to
institute a coup d’etat against the Ali Bhutto administration. It would be a coup d’etat
that the United States would secretly support.
As history recounts, the coup d’etat was undertaken.
When Zia el Haq came to power, one of his first official acts at the covert urging of
the United States, was to put Ali Bhutto on trial for treason.
Ali Bhutto is history now, as he was promptly hung.
His daughter Benazir, who was politically popular in Pakistan at the time was exiled
to England.
It should be noted that the CIA has used England in the past as a political dumping
ground for those it has wished to see exiled.
Zia was ensconced in power, and his power not consolidated by the spring of 1978, he
proceeded to do his masters’ bidding in Washington, and immediately reversed Ali
Bhutto’s rapprochment policies.
He immediately stopped the warming of Pakistani relationships towards India and
the Soviet Union.
He immediately reinstituted a very hard line, both politically and militarily, against
India and the Soviet Union, and immediately began to thaw out the previously close
relationship between Pakistan and China.
One of the points of putting General Zia in power was to restore the balance of power
in the Indian sub-continent vis-a-vis United States and China geopolitical policy.
Since Zia was a right-wing dictator, he would reinstall a pro-western, (secular in
name only) democracy, which is essentially what he did in Pakistan at that time.
He contained Muslim fundamentalism by force of arms.

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He readopted an extremely close relationship with the United States for public
consumption, but the real underlying truth was that Pakistan was a de facto vassal of
the United States in every way possible. It could not survive without United States
money.
So, once again, as had been done previously, Pakistan acted as an arms merchant
between the United States and the People’s Republic of China.
In other words, high technology weapon exports were being sent to Pakistan.
Pakistan was essentially re-exporting these exports to China, sometimes by itself, or
through using African or Israeli intermediaries.
At the same time, the double impact of this policy was that since Zia was, in
Washington’s eyes, the golden-haired boy of Pakistan,we were able to act in a more
overt fashion in terms of arming Pakistan.
And Washington did, in fact, sell billions of dollars worth of weapons to Pakistan —
all on credit of course.
The same scheme has been used before.
Pakistan didn’t have any money and it never has had any money.
The US government provided credit for large scale purchases of weapons from U.S.
defense manufacturers, and issued quiet credit guarantees, disguising these guarantees
among various quasi-government agencies, such as OPIC, CCC and the Export-Import
Bank,
A little mini-scandal was ultimately created in the 1980s, when the policy once again
shifted — the CIA backed Benazir Bhutto and her People’s Party in a coup d’etat against
General Zia and of course, the first thing Benazir Bhutto did when she took her father’s
place after an eight-year gap, was to have Zia hanged.
But, anyway, it’s necessary to kind of skip around to make this thing continuous.
Back to 1978 — the balance has been restored in the sub-continent vis-a-vis our
interests, namely that India, although technically a non-aligned state and the second
power of the non-aligned association of states, was in fact a Soviet satellite.
India was financed by the Soviet Union. They received all of their arms from the
Soviet Union. In the United Nations, they would consistently vote with the Soviet
Union. Although they maintained the facade of independence and paid lip service to
the west, they were in fact a de facto Soviet state.
Pakistan, being now strongly U.S., was very pro-United States. Having been
extensively armed by the United States, it resumed its theater political and military
position by being hostile towards India and keeping India in check.
It was also hostile toward the Soviet Union and moving once again closer to the

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People’s Republic of China, particularly the People’s Army and the Public Security
Bureau (PSB).
These events relate essentially to earlier doctrines — doctrines that had originally been
discussed in 1971 when Nixon first broke the ice with China with his meeting with
Zhou Enlai.
These were later consolidated into a CIA policy in 1973, which literally became
known as the “Colby China Doctrine.” It was realized that the United States and China
had very similar, global geo-economic, geopolitical and geomilitary global interests visa-
vis the containment of the Soviet Union, and that the policies were so close that the
language that was often used publicly was extremely similar.
Colby’s concept was to contain Soviet expansionism in all spheres simultaneously by
supporting opposite factions.
The public pronouncements by China were almost exactly the same thing, except as
the Chinese would be very cute and use the word “hegemonism,” as in to contain
Soviet “hegemonism.”
“Hegemonism” is just nomenclature for “expansionism.”
As we go forward to 1979, we again see a shift in theater politics, particularly on the
side of the Soviets.
The Soviets had by now invaded Afghanistan, and this was a direct threat to United
States interests within the geopolitical balance in the Indian sub-continent.
The Soviets made it known that they were looking for India to move much more
openly toward the Soviet camp. In order to entice India to do this, the Soviet Union
began giving India thermonuclear weapons technology.
Naturally, when the CIA became aware of this, which was only within a year or so,
Pakistan would also have had to have this technology.
The CIA was frightened of even covertly giving this technology to Pakistan. They, in
turn, asked China to give thermonuclear weapons technology to Pakistan, which China
gladly did. They saw it in their best interest, since they had traditionally looked at
Pakistan as a buffer state between themselves and India.
Now, with the Soviet Union making a bid to expand their influence in the Indian subcontinent
and threatening to introduce larger scale weapons systems in Afghanistan,
China suddenly became extremely close to Pakistan.
At this time, the United States became increasingly nervous vis-a-vis Soviet
expansionism, so in the 1979 to 1981 period, high-technology weapons transfers, as well
as shipments of the actual weapons to the People’s Republic of China were stepped up.
It was these high technology transfers that essentially allowed the People’s Republic

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of China to build a military satellite system as well as a military spy and intelligence
gathering satellite system, something they had been unable to do before.
The United States considered this a “stabilizing” factor.
The People’s Republic of China was way behind the eight ball in terms of satellite
development.
Both the United States and the Soviet Union had extremely well-developed military
satellite systems, so they could view every square inch of each others’ territory. In some
ways this acted as a mutual deterrence and mutual compliance.
China, lacking this technology, was constantly suspicious of the Soviet Union.
It was feared in the United States that China, on only a perceived provocation, could
very readily actually launch thermonuclear weapons at the Soviet Union because they
did not have the technological means to enter into any type of a mutual deterrence with
the Soviet Union.
Therefore, we looked at it in terms of macro-geopolitical and geomilitary interests to
see China have these types of high technology systems.
The further coincidental benefit to this was that it made billions for U.S. defense
contractors.
This was particularly true in the early 1980s. And the more billions that U.S. defense
contractors could make surreptitiously, the more millions of those billions would get
donated into Republican coffers.
There was still a geopolitical interest in doing this, but starting around 1981 that
became increasingly skewed as the Chinese began giving more and more millions to
the Republican National Committee.
There are some further connections that go way back and exist to this day that should
be mentioned because they are germane to other policies of the 1980s, even to Iran-
Contra.
This is the traditional connection between the United States, the South Africans, the
Israelis, and the Pakistanis. And later the Iranians. But the Iranians didn’t become part
of this equation until about 1985.
As I mentioned earlier, the Chinese had been giving thermonuclear weapons
technology to the Pakistanis, but what the Pakistanis wanted was missile technology to
go along with that — something the Chinese were sorely lacking.
This was particularly true with the so-called theater nuclear weapons delivery
systems.
The Pakistanis weren’t interested in strategic systems.
They were interested in theater systems. And theater systems were something that

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the Chinese had not devoted a lot of effort to developing.
The Chinese principal interest had always been the ability to project thermonuclear
power within a strategic theater of operation, not a specific regional theater. They
didn’t face any real threat in terms of a regional theater.
Therefore, starting about 1981, when Reagan first came to power, with the consent of
the United States, the Israelis started to give Pakistan missile technology, particularly
short-range and medium-range missile technology, as well as the technology to affix
thermonuclear warheads to missiles, which is a much more sophisticated technology
than equipping a missile with a conventional or even a chemical warhead.
A thermonuclear warhead on a missile is a whole different ball of wax. But to answer
the question — where did Pakistan got the missile technology?
It got the missile technology from Israel.
And where Israel got the missile technology was a transfer of technology from South
Africa.
The South Africans originally got the technology from the US.
That whole connection starts between the United States and the South Africans. It
had been commonly presumed by the Soviet Union, and incorrectly presumed, that it
was the United States that covertly transferred to Israel thermonuclear weapons
technology, which allowed Israel to build thermonuclear weapons of its own.
Of course, Israel did not have thermonuclear weapons capability fully developed and
deliverable until 1976.
The South African already had thermonuclear weapons in 1972 with the ability to
deliver them, at least on a short-range basis.
South Africa, though, was a different case. They were much less interested in missile
application, and much more interested in low-yield thermonuclear artillery shells,
particularly 155 mm and 175 mm thermonuclear artillery, a five-kiloton yield artillery
shells.
The United States had previously provided the South Africans with this technology,
particularly as it related to artillery shells or extremely short-range thermonuclear
weapons systems, such as the Lance Missile System, a very good portable short-range
missile system that carries either a five- or ten- kiloton thermonuclear warhead. They
are rather accurate, cheap to produce, with a simple guidance system. This was what
the South Africans were looking for.
This again related to an earlier policy, wherein the United States was extremely
concerned about the white South African government’s viability.
The obvious mathematics made South Africa inherently unstable — four million

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white people and eighteen million black people — both sides hating each other. These
kind of numbers always had frightened the United States because the United States
wanted to absolutely ensure that the South African government would remain white,
would remain pro-western, and would remain essentially under a joint United States-
British political control as it did for years.
Also the United States wanted to ensure that its supplies of strategic minerals (all of
which it got from South Africa) would remain intact — materials such as rhodium,
tritium, and strontium, particularly strontium-90, cesium-230, mercury-240.
These are strategic minerals that are found in few places in the world. The two
principal places they are found naturally occurring is in South Africa and in the Soviet
Union. They are all important components — (chromium is another one) for the
construction of thermonuclear weapons.
The United States was concerned that the South African government remain stable so
that its supply of these rare minerals would remain stable and available.
Were there to be a radical black administration, or were the white government to be
overthrown and a left-wing black administration be installed (which might chummy to
the Soviet Union) — this was a real concern in the 1970s.
It would be seen as a real problem to the strategic interest to the United States.
Therefore, the United States gave South Africa thermonuclear weapons technology,
concentrating on what the South Africans needed.
Namely, the South Africans’ internal interest was the ability to eliminate (with the use
of low-yield thermonuclear weapons) large numbers of blacks quickly.
If one looks at the demographic situation in South Africa, one sees that those eighteen
million blacks aren’t simply spread across the country. They tend to be concentrated in
large numbers in small areas.
There are large quasi-cities, or quasi-slums, or camps (whatever you want to call
them) and there was the subsequent institution of the South African “Homeland”
policy, which essentially set aside small independent states for blacks.
But to make a long story short, the policy of the South African white governments
had been traditionally to concentrate as many blacks as possible into the smallest area
possible, and to make these areas as far away from the white population — and the
white industrial centers — as possible.
This way they would be much easier to contain and much easier to eliminate,
particularly if one had thermonuclear weapons.
As I mentioned earlier, it’s necessary to digress in order to understand the whole
policy vis-a-vis China because it starts with other countries and other concerns which

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filter into China on both regional theater and strategic levels.
To conclude on South Africa — a second reason why we provided the South African
government with thermonuclear technology was for South Africa as a de facto vassal of
the United States to act as a bulwark against potential Soviet expansionism in Africa,
particularly in the border states around South Africa — Namibia, Zimbabwe, and
Mozambique in particular, and Angola to the northwest.
It was felt that if the South Africans had at least a credible short-range thermonuclear
deterrence that it would contain Soviet interests in Africa, which it certainly did.
You can see this vis-a-vis the 1975 situation in Angola when the Soviets put in
technical advisers and heavy weapon systems to back one faction, and the South
Africans, the Chinese and the Pakistanis covertly backed UNITA, the other side of the
faction.
UNITA is still backed by the same combination of powers today as it was more than
twenty years ago. Little has changed. However, the policy was successful, and the
Soviets were forced to withdraw.
This was an example of cooperation between the United States, China and its mutual
client states pursuant to this “Colby China Doctrine” of containing Soviet expansionism
in all spheres of influence and in all theaters simultaneously.
This famous South African-to-Israel-to-other-destination military transfer points
worked very effectively vis-a-vis getting weapons to Iran in 1985, and later the
following year, getting weapons to Iraq.
People tend to forget. They look at Iraqgate as being a 1988-1991 thing, when in fact
weapons transfers and weapons sales to Iraq had begun as early as 1986.
It was one of the policies of then-interim DCI Chief, Bobby Gates.
To conclude on the South African-Israeli connection, it should be noted that this
connection in itself proved profitable to the United States vis-a-vis the mutual military
relationship established by Israel and South Africa.
South Africa provided the State of Israel with nuclear weapons technology and also
sold Israel artillery pieces, particularly the very high quality Bofors guns and selfpropelled
155 and 175 mm artillery pieces.
In exchange for these, Israel began to sell South Africa jet fighters, principally the
Israeli Kafir, which was essentially a knock-off of the American F-5 at a time, when the
South Africans were looking to rebuild their air force which had become very old.
This was also a time when the United States could no longer either overtly or covertly
sell such weapons system to South Africa due to the various economic, political and
military embargos placed on South Africa after 1979, due to their apartheid policies.

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Filtering Iran-Contra into this equation for a moment — who was the principal
conduit between the US, South Africa and Israel regarding weapons transfers to Iran
and Iraq in 1985-1986?
It was the infamous Michael Harari, a senior Mossad agent who operated closely with
Manuel Noriega.
Bringing this through the 1980s — the policy towards arming China began to change
in 1986, when relationships between the United States and the Soviet Union began to
thaw to some degree. They continued to thaw in the years thereafter.
Some of my fellow cohorts knew, for instance, in discussions I had with Elliot
Abrams in 1986 (he was the Assistant Secretary of State for Latin American Affairs)
what the bigger picture was.
The Republicans within the Reagan-Bush regime knew as early as 1986 that there was
a potential scandal brewing, if the extent of indirect weapon transfers to the People’s
Republic of China in exchange for Chinese money ever came out.
This became an increasing detriment due to the shift in global strategic policy from a
hardline towards the beginning of a thaw between the U.S. and the Evil Empire.
So, by this time (1986 to 1987), the Chinese began to be regarded as a destabilizing
force geopolitically, whereas before they had been considered a stabilizing force.
The Soviet Union had not been particularly concerned about our weapons transfers to
China for twenty years (from 1966 to 1986) insofar as Chinese strategic nuclear
weapons had all been concentrated around the facilities where China produced nuclear
weapons, namely Lop Nor.
By 1986, however, Chinese strategic assets had been well-dispersed throughout the
country in mobile launchers and in silos, much to our chagrin.
We also became increasingly aware that the bulk of Chinese strategic forces was in
fact aimed at the United States, not at the Soviet Union, as had been commonly
presumed earlier — and as the Chinese had informed us earlier.
Therefore, there was a period from 1986 to 1990 where weapons technology transfers
and sales to China via intermediaries were temporarily scaled down, just as the Soviet
Union began to convert from a communist country to a capitalist country.
However, when it became apparent in 1990 that the Soviet Union was effectively
unraveling, we returned to the situation that we were in previously. This time it was
for a different reason — that Russia was now a destabilizing factor because of its own
internal political chaos.
Therefore, a renewed effort with China to bolster Chinese technology and to bolster
the production of strategic systems in China was looked at as a restabilizing influence

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against Soviet internal instability instead of external adventurism, as it had been ten
years prior.
In 1991-1992, at the very end of the Bush administration, technology and weapons
transfer to China was ramped up again, which served Mr. Bush well in terms of the
amount of Chinese money that came into his 1992 presidential campaign.
However, this is not to say that the Chinese didn’t hedge their bets.
They had traditionally given money to both parties for years through a variety of
artifices. Before 1992, the bulk of political campaign contributions had always been
given to Republicans.
In 1992, even the Chinese sensed there was a shift coming. They made sure, for the
very first time, that the Democratic National Committee started to get six-figure
Chinese political money.
Fast forwarding to today, that amount of money has increased. The policy of covertly
arming China has really not changed.
As Larry Klayman at Judicial Watch is correct in pointing out, we are “Japanning”
China.
And I wonder how many Americans really understand what that means. What he’s
saying is that by allowing China, ostensibly a hostile nation, to have “most favored
nation” status with the United States regarding trade policies, we are allowing China to
exercise a $3 to $4 billion a month trade deficit with the United States.
Most of this trade deficit is then used to purchase weapons, which are used to build
strategic thermonuclear weapon systems pointed at the United States.
The long and short of it is that the American citizen acting in his capacity as both a
taxpayer and a citizen is essentially arming China to point weapons at the United
States.
And that is the real nub and the real sizzle of the scandal.
Klayman knows it. And you can tell by the way Klayman talks on the political talk
shows, he tries to grind in the “Japanizing” of the connection, since we allowed Japan
to run trade deficits with the United States for years in order to purchase US goods,
principally weapons.
You can imagine that Klayman says this is the biggest potential scandal of the century
— a covert policy that has existed for over twenty years. This cannot be disguised or
colored for geopolitical or geomilitary purposes because in the public’s mind, it is so
much about money.
Even in the politician’s mind, it is now really a relationship about money. There are
no longer any geomilitary or geopolitical concerns.

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This budding scandal, which is now starting to be investigated by the Department of
Justice, as I have said, is the next big scandal.
For twenty years, this policy has existed.
There have been millions and millions that have come into both political parties’
national committees in exchange for weapons going out the back door.
These are weapons that the American people, both as taxpayers and consumers, have
financed to have pointed at themselves.
You can imagine that this is one hell of a scandal if it gets packaged up the right way,
which is exactly what Klayman is attempting to do.
We’ve discussed the previous geopolitical, economic and military implications of this
policy. Why this policy was framed to begin with and why it continues to this day.
What we have not discussed is the money coming through a variety of Chinese
agents. The crossover — which is going to become of greater interest I think in the next
six months — the crossover between the Republican and the Democrats vis-a-vis
surreptitious Chinese political money coming into the national committees of both
coffers has been worked consistently over twenty years by the same intermediaries.
That is what has already been publicly revealed about Charlie Trie and John Huang,
for instance, and the 147 other Chinese that commonly mentioned in the media as being
“The Gang of 147 “ identified by Congress.
The banks, which are the root of the money, start from the Bank of China and filter
out through the Hong Kong branch of the Hong Kong and Shanghai Bank owned by
Great West Life of Englewood, Colorado Leonard Millman’s Company, the
Industrial Bank of Indonesia, and the Riady family.
The notion of Clinton’s closeness to the Riady — this isn’t new. None of this is new.
The Riady family was also very close to the Bush people. It’s just that when the money
for Republicans left the Industrial Bank of Indonesia, it simply took different routes.
It is Chinese money (and this is little known) that principally caused the formation of
the Nugan Hand Bank.
When that fell apart and became exposed and some people in Australia died to make
sure it stayed covered up, there was simply a new artifice created for Democrats.
Money from the Riady group was coming directly into Arkansas banks, principally
through the Stephens Investment Group and B.C.C.I. Bank.
It was simply a different artifice when the money went from the Orient to the United States.
When it got to the Democrats, it was simply a different set of banks and a different set
of brokerage firms. In Republican times, the money had often been filtered through
Merrill Lynch. Now it’s filtered through Stephens Investment Group and other smaller
brokerage firms close to Clinton or other Democrats.

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What has come to light recently is the Democrat side of the equation. This includes
the connection of Ron Brown, the DNC, Chinese weapons and licensing by the
Commerce Department for export of armaments and high-technology weapons, which
were winding up in China being mislabeled and so forth.
You start to understand the role of Ron Brown in all of this. Also you start to
understand why he had to go.
He suddenly died at the very same time that the FBI received conclusive information
that John Huang and Charlie Trie and a few others were not only just Chinese
businessmen, but were in fact reserve officers (not just in the PSB) but of the MSS, the
Chinese Ministry of State Security.
If this were to become publicly known (the FBI already knows it and has leaked some
of this information to Burton’s committee, but not the proof to back it up), FBI Director
Freeh has recognized the political implication.
This would constitute treasonable conduct by the Clinton administration. The notion
of treason has been put forth by Klayman, Charlie Smith and others. There’s enough
that’s been leaked out publicly that you can start to connect the dots of why they’re
using the word “treason.”
Chinese money is coming in from Chinese brokers. Some of these Chinese brokers are
not only closely connected to the government in China, but in fact they’re Chinese
intelligence officers.
The Department of Commerce (under Ron Brown and continuing to this day) is
allowing false bills of lading for exports of forbidden weapons that it knows are going
to wind up in China.
Ron Brown had already begun to leak some of this publicly before he died.
I imagine it’s one of the reasons he did die.
Chinese weapons merchants, who are also Chinese intelligence agents, are being
allowed such access to the Redstone Arsenal in Huntsville, Alabama.
Many of the Chinese arms merchants and Chinese people identified as having been at
weapons auctions at Redstone, or having been at certain military parties with two- and
three-star generals are also the very same people who are on this List of 147.
Perhaps it becomes more obvious why the Klaymans of this world are invoking the
word “treason” because if this is all put out the right way, and the dots are all drawn
in, it does represent treasonable conduct by the Clinton administration.
It also represents treasonable conduct by the Bush administration. I imagine that’s
why certain Republicans aren’t all that enthralled about investigating it.
Look at the Republicans who are the most reticent in supporting a new and expanded

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probe into Chinese money for Chinese weapons. They are the very same Republicans
of the old Bush group who were very close to the defense industry before and continue
to derive much money from the defense industry.
It struck me with some humor that the members of the Congressional Select
Committee investigating this includes the second most senior Republican member. It’s
none other than Congressman Porter Goss who has the distinction of having received
more defense money from Loral and Hughes Electronics than anyone else.
So if anyone is looking for any astounding revelations from the select committee, or
even the Defense Intelligence Oversight Committee which is also loaded with
Republicans close to the defense industry, I wouldn’t bet on it.
There’s an ancillary point to this which is the Chinese hedging their bets.
In a separate probe, there was a gentleman who was revealed to be acting as an
intermediary, laundering Chinese government money to both recent Bush
gubernatorial campaigns — both in Florida and Texas.
It was also discovered how that money was being used by their campaigns, and then
getting laundered back to Republican National Committee, principally through
members of GOPAC.
It is exactly the same Chinese money route that existed in the 1980s. Nothing’s
changed.
The way the Democrats are getting the money is almost exactly the way the
Republicans have always gotten it. It just involves a different series of banks, once the
money leaves the Orient and gets to the United States.
But more and more of this is going to come out, and more and more of it is going to
be provable because there was never a large effort to cover it up.
It has only been in recent months that the Clinton administration has begun to
scramble with it. You can tell this is getting closer to home and Republicans are
becoming increasingly concerned about previous liability.
Why else would it be that Israeli, South African, and Brazilian so-called “Agriculture
Trade Delegations” have all shown up at the Redstone Arsenal in Huntsville, Alabama?
The United States military institution has nothing to do with agriculture
It’s the same old connection. It’s really the South African-Brazilian connection and
that’s a separate issue.
You may remember some of the comments in the media and the little scandal that
had been created by the revelations of George Sr., and George Jr., and Jeb and Neil’s
connections with a certain Brazilian named Amaro Pintos Ramos who was heavily in
the Brazilian nuclear program and how nuclear materials left Brazil and went

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elsewhere.
That’s a whole different sub-connection.
However, the only reason I happened to mention it is because of all these South
Americans that showed up in these trade delegations.
Simply look who the people were from the past. It isn’t hard to understand what the
probable text of discussions were. This was called a “cover your ass” meeting which
involved Israeli, South African and some South Americans, as well as some senior
military officers, mostly two- and three-star generals who got their initial appointments
(their initial stars) in the Reagan-Bush administration.
What’s going on in Huntsville now is essentially a Republican effort to cover your ass
at the source.
An interesting little double feature of this on the Republican side is how they’re
making money three ways to Sunday on this thing.
In 1991, the first people who set up export companies in the Soviet Union were all
part of the Old Bush Gang.
Frank Carlucci and Dick Armitage set up an export company, Blackstone Investment
Group, operating ostensibly for the CIA to purchase potentially wayward nuclear
materials out of the Soviet Union. This also involves some technology people aren’t
aware of.
The stuff was getting repackaged and then surreptitiously sold back to China.
In other words, how can you can sell the same nuclear components and technologies
five different times in ten years and keep selling them to the same parties back and
forth?
It’s incredible. But, as I’ve said before, you could write a separate book on this.
Certainly, that’s what Larry Klayman and Charlie Smith will ultimately do . He and
Smith will collaborate with a few others, and you’ll see a book attempting to expose all
this as much as they can.
Unfortunately, they probably don’t know half of what I know, but they’ll try.
Anyway, I think I’ll end it here because otherwise if I start getting into the banks, it’s
just endless — following this Chinese money around. And then how it gets looped into
deals in the United States and looped into transactions that are so far removed, you
would never believe that they originally extended from Chinese money.
They get guaranteed from all sorts of esoteric little agencies that don’t have anything
to do with the Department of Defense.
It is almost laughable.

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15. More Iran-Contra Stories: Both Humorous and Salient
    I would like to devote some time to both humorous and salient narrative stories about
    myself and my involvement in Iran-Contra as well as other illegal and covert matters of
    State in the 1983-1986 time frame.
    I think it’s important to not only have raw information, but also narrative stories, true
    stories in a non-fiction, narrative sense. I’d like to do a series of narrative stories, a
    combination of stories that I believe are not only true, but are also humorous and yet
    salient.
    These stories will be in no particular chronological order. They are going to be as I
    recount them from my own head. Actually I can do a better job that way rather than
    having to sequence them chronologically.
    They will involve characters such as Oliver North, Richard Secord, Jeb Bush and a
    host of others.

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One interesting story that comes to mind is my meeting with Jeb Bush at the end of
the second week of February 1986, ostensibly to discuss the text of my upcoming grand
jury testimony.
In this meeting with Jeb Bush, I intended to reveal to him in a backhanded manner
how I intended to play my cards and to see what his responses were.
In this discussion, I had mentioned the recent assassination — only a few days before
— of Barry Seal.
I said to Jeb, “Isn’t it convenient that Barry Seal was assassinated when he was? And
now suddenly all the information and documents he had have gone missing?”
Jeb had a rather broad smile on his face and he concurred that it was convenient. He
added a little snicker — as he often had a tendency of doing.
Also little beads of sweat formed around his forehead, as when he gets nervous. It’s
something you can notice when he’s on television.
He still has a tendency to have little beads of sweat around his forehead, when he’s
either lying about something, or he’s nervous about what someone else is saying.
My conversations with Jeb at this meeting were overheard by the two Secret Service
agents who were always assigned to Jeb when he was in his office at 1390 Brickell
Avenue in Miami.
I had intimated that if certain parties in Washington were not prepared to come to
my aid pursuant to my grand jury testimony, that it would be entirely possible that
certain details of a certain meeting occurring in September of the year before might be
leaked out to the press.
Jeb asked me what I was talking about.
I specifically mentioned a September meeting of the Dade County Latin American
Chamber of Commerce, which Jeb chaired, and which, of course, was not used as a
Chamber of Commerce meeting at all.
It was essentially used as a political meeting for covert operational planning pursuant
to Iran-Contra.
As I’ve said before, Oliver North, Richard Secord or Dewey Clarridge or, in a few
cases, even Sam Watson and Fred Ikley himself, would show up at these meetings.
Anyway, I had recounted to Jeb, as if he didn’t know what the text of that meeting
was that he chaired: the conversations he had with Oliver North and Richard Secord
and Dewey Clarridge, all of whom attended that meeting.
Dewey seldom attended the meetings, but this time the four of them were discussing
the assassination of Barry Seal and how it was to be carried out since Barry was
becoming an increasing liability.

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I had told Jeb that I had substantial corroboration of that meeting. And I think Jeb
understood what I meant.
I could certainly place him into a conspiracy to assassinate a CIA drug runner for the
sake of political expediency.
When I was through speaking, Jeb became quiet and his demeanor became serious
and changed.
He became flushed, as he often does when he’s frightened.
Jeb responded by telling me that it would be most unfortunate if I were to do that,
since I might wind up like George Morales or Johnny Molina.
What he was referring to, of course, was that George Morales had a number of
months earlier been set up on a cocaine charge — to distance what Morales was doing
from the CIA.
As any serious student of Iran-Contra would know, Morales absolutely screamed
“CIA, CIA.”
But ultimately he was convicted.
He was bound and gagged in the courtroom before the Republican Judge Hoover,
who allowed him to present no CIA defense. He couldn’t mention any Bush names, or
North, or Secord, or anything.
He got the standard fifteen year sentence for cocaine trafficking, which at the time, in
the State of Florida, you had to serve six years nine months mandatory.
Jeb then went on to mention to me about Morales. He said “Of course, Morales will
never leave prison alive.”
Fast forward to the time when Morales was due to be released from prison in early

1992. The day before Morales was to be released, he did, in fact, slip on a bar of soap in
      the prisoner’s shower and died as a result of the fall — supposedly.
      The following day, he was due to be picked up at Miami International Airport by a
      Congressional charter flight arranged for him by Congressmen Alexander, Rose,
      Brooks and Gonzalez.
      He was to be taken to Washington to have a detailed discussion with them and their
      investigators about his knowledge of Iran-Contra.
      At that moment, the threat that Jeb was making to me — the sublime threat about not
      wanting to wind up like Johnny Molina — really didn’t mean anything to me because I
      knew as of the day before that Molina was still alive and well.
      I didn’t think anything of it until the next day when I got into my office and opened
      the Miami Herald.
      I read that Mr. Molina had in fact “committed suicide” that evening in the parking lot

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of a restaurant in Pensacola, Florida.
He had “committed suicide” by discharging an entire twenty-round clip of a MAC-10
into his own body.
Of course, by the following day, the body had quickly been cremated — before his
family was notified and before an autopsy could be done.
It’s the same old story.
It was interesting to note that Jeb had issued that threat at that meeting which was
held at about 10:30 a.m.
Molina “committed suicide” at about 9:30 p.m. that evening.
I found the connection rather humorous, but also salient in that Bush knew what was
going to happen a number of hours before it actually did.
A second interesting and humorous story I can relate from that September meeting
was not only the discussion of Barry Seal, but the general discussion of narcotics,
wherein Jeb was talking to Oliver North.
Dewey Clarridge and Joe Fernandez were there who was very closely and Jeb was
whining about how they were importing so much cocaine for the purposes of
maintaining illicit covert revenue streams that, in fact, they were depressing the street
value of the price of cocaine.
Revenues were in fact diminishing.
And North chuckled, and said that he had already made arrangements — that he,
Dewey, Fred Ikley and Clair George had made arrangements.
What they were referring to by “arrangements” was the opening of the so-called sea
routes to substantially increase the amount of cocaine that was being imported.
Jeb Bush said to North, “All you would manage to do is to further depress the price of
cocaine.”
North’s attitude was that, “Well, we’ll simply bring in more and more of the stuff to
maintain revenues.”
As it has been pointed out in the past, CIA-assisted enterprise narcotics trafficking
managed to depress the street price of a value of cocaine from $30,000 in early 1985 to
$12,000 by mid-1986.
Later in this conversation, Jeb, wanting to be helpful, threw out a suggestion
regarding the separate Guns-For-Drugs Operation being run out of Mena Airport.
He suggested that North start changing the fraction vis-a-vis the Contras.
Instead of one M-16 rifle, 1,000 rounds of ammunition, and the full field kit in
exchange for one kilogram of cocaine, Bush suggested that North inform Enrico
Bermudez and Eden Pastora that henceforth it was going to be two kilograms of

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cocaine for the same weapons delivery as it had been in the past.
North rebuffed this suggestion, reminding Bush that the one M-16 rifle, ammunition
and field kit cost them a total of a $1,000 net delivered and the value of the kilogram of
cocaine was still $17,000 or $18,000.
The third and final salient highlight I’d like to point out about that meeting (which
was an important and pivotal meeting) is that General Secord had mentioned to Jeb
Bush — and I was standing not two feet from him — that some of Jeb’s hangers-on (some
of the old Cuban Bay of Pigs crowd that were Jeb Bush hangerson vis-a-vis Jeb wearing
his hat as a scamscateer and a money launderer) were beginning to have big mouths.
And Jeb asked, “Who?”
Secord specifically said the infamous Manny Perez, who was a very close ally of Jeb’s
and had been for a long time. Perez used to act as a straw at various fraudulent deals
for Jeb. He transported cash. He wired money into accounts he controlled through a
variety of other straws. He was also very close with Jeb at Eagle National Bank in
Miami.
Jeb asked General Secord what he, Jeb Bush, was supposed to do about it.
And Dick Secord said, “Well, your father controls your show and he’s got to clean up
his own mess.”
History records it wasn’t that long after that an article appeared in a certain major
newspaper about Manny Perez.
Evidently Manny’s body was found floating in a canal in West Hialeah, and his death
was duly declared a “swimming accident.”
Perhaps the reader can better understand the phone call I received the day after the
November 1998 elections when Jeb Bush won the governorship of the State of Florida.
On that very same evening, I got a phone call from Neil Lewis in Miami, an attorney
who had previously represented both Jeb and me, and who had acted as a conduit for
people like me to Jeb and Dick Secord and a variety of others.
Neil told me that he had a direct message from Jeb stating that if I wished to continue
to be a resident of this state and to remain at large and with life that I best not reveal
stories such as I have revealed here.
When Neil relayed the threat to me that evening, I told Neil that when he talked to
Jeb the following day (which I knew he would because he wanted to know what my
response would be) to tell Jeb that I was aware that my former close colleague, Larry
Hamil, prior to the November 1998 elections, had been involved in a political campaign
money laundering scheme, wherein Mr. Hamil laundered certain monies of Chinese
origin to certain Republicans (not Democrats, but Republican candidates) including the

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gubernatorial candidacy of Jeb Bush.
Neil laughed and said, “Are you certain you want me to relay that?”
I said, “Yes,” and I didn’t talk to Neil after that.
I can only presume Neil did, in fact, relay that message because the next morning
when I got out of bed, I was greeted by a view (outside of my bay windows) of two
unmarked cars parked directly in front of my townhouse. They were of the sinister
variety I’m used to — dark Chevy Caprices, darkened windows, black-wall tires, four or
five aerials coming out of the back of them, Washington D.C. plates.
There was enough sunlight that I could see two men sitting in each vehicle.
And that’s all they did.
They simply sat there and looked directly at my unit. They stayed for a few hours in
that position and then drove off.
I had one of my neighbors record the D.C. plates on the car and upon checking them
out later in the day, I was informed that no such plates existed.
But nonetheless, the message was sent.
Recently I have not gone forth attempting to bang the drum on the issue of Chinese
political money coming into Republican candidates in 1998, particularly Jeb Bush.
I would also like to add an adjunct to what I just said — for the naive and the
uninformed — about the type of lives people like me live.
When I say people like me — there may be four or five hundred left that in my
category.
It is the sinister looking cars with the darkened windows and aerials with Virginia or
Washington D.C. plates that trace back to nowhere.
It is the binoculars and the parabolic rabbit ears, the obvious telephone taps, the loose
surveillance, and having the local or county police drive slowly past your home in the
middle of the night and shine their spotlight on your windows.
This is the way signals are sent to people like me (when we are playing the game of
chess we are forced to play every day in order to exist) that we’re getting too close to
the proverbial line in the sand that exists for all of us.
If we, by this manner of more subtle intimidation, do not take a step back from the
line, but rather decide to be obstreperous and take another step closer to the line, then
the pressure, harassment, intimidation (whatever you want to call it) will increase in
some manner.
Then the knock on the door will come.
And suddenly you’ll be arrested for the umpteenth time under some obscure charge
that you never knew even existed and held in some county jail.

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God knows where you’re going to wind up being booked under an assumed name.
There’s a progression of pressure the closer you step to the line with the truth about
your former colleagues in Washington.
If you step over that line, there is only one end and final result — as about 400 of us
have learned in the past 12 years.
And that is death.
On a personal note, this is the type of life I (and others like me) have to lead, the few
who are left now 15 years later, who have yet to be classified through the proverbial
strainer, as I have mentioned before.
Those of us who are left are still in this state of limbo. We still have a line drawn for
us in the sand, a line we did not draw but that others drew for us.
The others are those who know too much about those in power to both draw and
enforce that line.
And what pisses me off about Jeb Bush — and why I have a particular dislike for him
— is how he ground into me in subsequent periods when I had some contact with him
again through Neil Lewis, when I was trying to work something out in 1992.
He said, “Al, there are no heroes, and there are no tooth fairies.”
That comment will stick in my craw and it will do so forever.
The reason it sticks in my craw is because he’s right.
What he was referring to was the life I have to lead.
I have to say enough. I have to use enough of my information in order to earn a
living without stepping too close to that line.
And yet I remain in the jack box into which others have put me in — forever
consigned to this fate.
What he meant to imply, when he said “There’s no heroes or tooth fairies,” is that
there isn’t anyone on the other side of the coin that would ever pull me out of the jack
box.
There’s no Good Samaritan. There’s no member of the public, no member of the
media, no public interest group that’s going to say, “Al, we’ll pull you out. We’ll pay
you what you are owed. We will help protect you, and in exchange you will tell us
everything you know.”
That doesn’t exist.

Note I Stew Webb helped get this book published

and was owed 10% proceeds but I have never been paid a dime

it is believed Al Martin is dead.