Secret and Suppressed: Banned Ideas and Hidden History (56 page)

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Let me ask about the Reagan administration. You said that Reagan was considered to be “pliable” to suggestions from his advisors…

True. He relies on his advisors to run operations.

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Does, for example, Otto tell Helmut Schmidt who tells Haig and Haig says, “Go?” Or are they trusting the instincts of people they feel are allied with them? Are they trusting that Haig is crazy enough to do what they want without prompting?

A little of each, actually. Haig is obviously around-the-bend, but he’s just one avenue. The man is so unstable that they don’t rely on him solely to give advice to Reagan.

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Could you give examples of the Organization influence, how this has worked?

The petroleum companies, during the Iranian hostage crisis. American oil companies had ordered an embargo against doing business with Iran, and could not purchase oil, not that there was that much to buy. In the early stages, at least, the oil would be loaded on the tankers, out at sea. Papers would be changed. The papers would read that the shipment would be going to the Hague, into Holland, Rotterdam, principally, and it would be going to American refineries on the Gulf Coast.

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It would leave Iran with a bill of lading to Rotterdam? And the bill of lading would be changed?

At sea, as if it were going from Rotterdam to the Gulf Coast refineries, whichever could handle the load. A premium was paid, oh, 40 cents, 50 cents. I heard one time as high as a dollar and a quarter. They called it a commission per barrel.

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Was there much resistance among the oil executives to doing this?

Not at all. Controlling the corporation and having influence is one thing, but ultimately the Organization controlled the flow of funds. It was to their advantage to cooperate. To give you an example, during this time one of the lower rung people wanted to get in on it, and they were contributing a little something, so they were given between 25 cents and 40 cents a barrel. A little something to sweeten it. Considering the capacity of these tankers, it’s a nice little touch for making the arrangements. They’d take the fall, if anyone starts investigating, some news organization or government organization that wasn’t in the know or wasn’t controlled. They’d have to hang somebody’s hide to the wall — the guy who’s getting the 40 cents commission, because he’s doing all the work. He’s the recognizable one, he arranged for the shipment, nominally. His name was used, that’s more accurate.

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Can you give any other examples?

Eastman Kodak were advised of the manipulation of the silver price far enough in advance to stockpile some rather large amounts of silver. Then, on the announcement of the astronomical prices of silver, going up, they’d announce that we now have to raise our prices. Silver has gone up 10 times over its price in the last 2 months. Now we have to raise our price from $2 a roll to $4 or $5 a roll, when in fact they had silver at the old prices they were using.

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Were the Hunts, who seemed to be at the center of the silver manipulation
…

They weren’t. They thought they were screwing the Arabs. It was Arab money that did the buying. So when the bath came, it was the Arabs took the bath. The Hunts got a nice profit for themselves, the Organization got a fantastic profit for themselves, and the Arabs were left sucking eggs. Who took the rap? The Hunts. You notice during the investigation, on paper they supposedly lost, what was it, a billion dollars or so many hundred million … all on paper….

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How about Columbia Pictures?

There was a contract man at Columbia Pictures, and I’d met with him and discussed investments. I didn’t say “The Nazis want to invest with you.” Rather, “We’d like to have some input into Columbia.” The idea was to get them hyped up about a project that Columbia would merely make profits — somebody else would risk the capital. They liked this very, very much. We were talking about who the best man was, and I suggested, by no accident, that it be R. This was about six months before the Begelman affair developed.

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What was R.’s function to be?

To be a star in the motion picture. The Organization would back it.

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Was this picture produced?

Never. Never had any intention of being produced.

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In what way is there profit in this situation?

That they would schedule — this is another example of long-term planning — around this project, scheduling a release, because they would be acting merely as a distributor for the film. When the film was not delivered in time, that schedule was blown for the next year to eighteen months. That immediately caused a depression in the price of the stock. That was merely manipulation so that they could get the stock in Columbia.

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Who was supposed to be putting up money for this?

Nominally, I was. I said I represented European interests that would be interested in investing in this film.

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So Columbia was scheduling distribution for a film that never got produced. How much of a commitment did they make?

They made a commitment — we told them they would have worldwide rights to it, and then we told them we would have to shoot such-and-such a place, and they told us, “We like the idea of R., but…” They actually were our best allies in finding problems. In the interim the Begelman affair started up. The Begelman affair helped us, which we were no part of, but it helped drive the price down so we could get into Columbia, which we did at between four and five dollars a share.

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How did the Allied Artists situation work?

That was ‘78, I believe, and representations were made to them, supposedly by a producer who wished to remain anonymous, who wished to rescue them from their plight. They were in trouble for quite a number of years — it didn’t just happen in one year. What Allied Artists was told… They had just gotten through producing
Wild Geese
and were in hock about two million dollars, which isn’t a great deal for a film company, but for them it was critical. It was what put them over. An agreement had been made to distribute their film and to back any losses they had. The deal had fallen through, particularly when word was leaked to the SEC that the man doing this would be in some violation. He was prevented by some legal maneuvering. SEC was alerted to this, they halted trading immediately in Allied Artists and the company put into receivership and the assets sold off.

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Did the Organization own shares in the company?

Yes. During this period when there was a goosing, this producer — a mythical figure — wanted to buy the company, get them out of their bind. That coincided with the purchase of the shares in the company. When that story started circulating, the Organization had already reached their position in purchasing shares, and the shares had doubled…

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The shares had been purchased and then the offer to purchase the company sent the price of the shares up?

Yes, and then the shares were sold. The company went into receivership and the assets sold off at a profit. Not to Allied Artists. To the Organization.

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Is there a particular attraction to the film industry that the Organization likes?

There are so many ways of hiding profits from the films, basically a type of skimming with creative bookkeeping in some ways akin to the casinos.

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We’d like to get as complete a list as you have in mind of corporations who are involved with the Organization. Not necessarily in accord with them, but which have individuals who are under pressure or in accord.

Companies penetrated by the Organization? Texaco, Polaroid, Pan American, Dillingham, Sun Oil, Standard Oil, Lockheed, Resorts International, Columbia.

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Okay, […] had asked if there was any overt connection between Rockefeller and other financial biggies and the Organization.

It’s interesting that you ask, because Rockefeller, very bluntly, if not too melodramatically, was one of the bitterest enemies of the Organization.

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Was? You mean Nelson?

That’s right. David no, but Nelson yes. Nelson worked long and hard during the period when the Germans were currying favor and developing economic and political ties with South America. He was working to knock those ties out. He never did, but they didn’t forget that. He was one of the few men that could put the pieces together, and had contacts in South America that could have blown the whole Organization. At least they looked at that as a distinct possibility. So, far from working with, he worked very heavily against. Not a very endearing personality, I know, but he was a decent person.

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You had begun to mention that David works with the Organization and that you had some information that Nelson’s death was not natural or accidental.

If I may be permitted, the public is supposed to believe that Nelson was screwing his secretary and merely had a heart attack, instead of it being a case of… what’s the word? Fratricide?

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You’re saying that David had Nelson done in?

Yes. They considered him too much of a bleeding heart. It must be remembered that Nelson was Roosevelt’s man in South America for counteracting the German influence pre- and during WWII. He was probably connected to the Organization, but what’s important is that he was one of the few men in a position to hurt the Organization and insulate himself from retaliation. And Kissinger was his advisor, and Kissinger reported to David.

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We had been talking about Carlos, and you had mentioned that he is always protected by Organization people…

When he’s in Paraguay, yes. I’ve never seen him. I wouldn’t know him if he walked in the door.

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This door? His reputation is such that he makes a very obvious entry. You’d probably recognize him.

Grenade first? It was amazing how he just disappears for long periods. That’s where he is [in Paraguay] when he disappears. I’ve never seen him when I’ve been down there, and I know he’s been there on a least one occasion when I was there. An Organization man is with him virtually all the time when he’s travelling. The story of his being KGB-trained is untrue.

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Do you know any of his background with the Organization?

He is the liaison between the Organization and the terrorists. He’s the only one who knows it’s coming from the Organization. The Organization provides logistic support, transports him safely to any location, and when he’s not on an operation, he’s kept safely down there.

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You mentioned a 1979 meeting at Bohemian Grove where it was decided to elect Ronald Reagan. What was done, specifically, to help elect him? Since you mentioned some involvement with the Iranian hostage situation, was that a part of this plan?

You must remember that the Shah, the one who died, his father was very pro-Nazi. The German industrial element has very carefully, for many years, cultivated the Middle East countries. There was a time when the royal families were a joke — give them some girls, give them a few fancy parties and they’re happy and you can steal their oil for a dollar a barrel. They’re now stealing it for forty bucks a barrel. Where do you think the money’s going? They get the families to up the price and use the money to invest in the Organization’s financial dealings, be it directly in bullion, as I mentioned before. This created a physical shortage of gold, and this was engineered by the Organization. So we’re getting back to Iran, and how Iran could help Reagan. Actually, it was supposed to hurt Carter, which it did immensely. People weren’t going to vote for Reagan — they were going to vote against Carter. The semantics don’t matter. Reagan was elected.

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How was it done?

Information was fed from the Organization to Helmut Schmidt to David Rockefeller to Henry Kissinger. Creating friction leading to an incident and feeding the incident. Very simply, the incident was created by bringing the Shah to the United States. The people in Iran looked at it very simply. Their reaction was predictable.

— What about Organization involvement with the IRA?

The IRA has been funded by this Nazi organization to a great extent. Principally, though, they supply the transmittal of funds and supplying data, supplying logistics, that is, specific materials such as explosives and electronics to accomplish the terrorist acts, such as bombings, burnings and shootings. Among the terrorist acts of the IRA the Organization has supplied the murder of Mountbatten, in which S–- supplied part of the electronics for radio control of the bomb that was set off on Mountbatten’s yacht. The Organization continues to supply safe houses for materials to be stored, people to be secreted away, before, during, and after an operation, and to provide safe conduct out of an area. Where it is deemed necessary or advisable, sacrificial lambs are usually given up to the authorities, and the investigation regarding the particular incident would end.