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CIA
Watergate Scandal

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Connection between CIA and Watergate Scandal

CIA director Schlesinger commissioned the "family jewels" compilation with a May 9, 1973 directive after finding out that Watergate burglars E. Howard Hunt and James McCord (both veteran CIA officers) had cooperation from the Agency as they carried out "dirty tricks" for President Nixon.  
Submitted by fedup2007-06-24 17:14:08
The Schlesinger directive, drafted by deputy director for operations William Colby, commanded senior CIA officials to report immediately on any current or past Agency matters that might fall outside CIA authority. By the end of May, Colby had been named to succeed Schlesinger as DCI, and his loose-leaf notebook of memos totaled 693 pages [see John Prados, Lost Crusader: The Secret Wars of CIA Director William Colby (Oxford University Press, 2003, pp. 259-260.]

Seymour Hersh broke the story of CIA's illegal domestic operations with a front page story in the New York Times on December 22, 1974 ("Huge C.I.A. Operation Reported in U.S. Against Antiwar Forces, Other Dissidents in Nixon Years"), writing that "a check of the CIA's domestic files ordered last year… produced evidence of dozens of other illegal activities… beginning in the nineteen fifties, including break-ins, wiretapping, and the surreptitious inspection of mail."

On December 31, 1974, CIA director Colby and the CIA general counsel John Warner met with the deputy attorney general, Laurence Silberman, and his associate, James Wilderotter, to brief Justice "in connection with the recent New York Times articles" on CIA matters that "presented legal questions." Colby's list included 18 specifics:

1. Confinement of a Russian defector that "might be regarded as a violation of the kidnapping laws."
2. Wiretapping of two syndicated columnists, Robert Allen and Paul Scott.
3. Physical surveillance of muckraker Jack Anderson and his associates, including current Fox News anchor Brit Hume.
4. Physical surveillance of then Washington Post reporter Michael Getler.
5. Break-in at the home of a former CIA employee.
6. Break-in at the office of a former defector.
7. Warrantless entry into the apartment of a former CIA employee.
8. Mail opening from 1953 to 1973 of letters to and from the Soviet Union.
9. Mail opening from 1969 to 1972 of letters to and from China.
10. Behavior modification experiments on "unwitting" U.S. citizens.
11. Assassination plots against Castro, Lumumba, and Trujillo (on the latter, "no active part" but a "faint connection" to the killers).
12. Surveillance of dissident groups between 1967 and 1971.
13. Surveillance of a particular Latin American female and U.S. citizens in Detroit.
14. Surveillance of a CIA critic and former officer, Victor Marchetti.
15. Amassing of files on 9,900-plus Americans related to the antiwar movement.
16. Polygraph experiments with the San Mateo, California, sheriff.
17. Fake CIA identification documents that might violate state laws.
18. Testing of electronic equipment on US telephone circuits.

Read the Documents
Note: The following documents are in PDF format.
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Document 1: Summary of the Family Jewels
Memorandum for the File, "CIA Matters," by James A. Wilderotter, Associate Deputy Attorney General, 3 January 1975
Source: Gerald R. Ford Presidential Library

On New Years' eve, 1974, DCI Colby met with Justice Department officials, including Deputy Attorney General Laurence H. Silberman, to give them a full briefing of the "skeletons."

Document 2: Colby Briefs President Ford on the Family Jewels
Memorandum of Conversation, 3 January 1975
Source: Gerald R. Ford President Library

Ten days after the appearance of Hersh's New York Times story, DCI William Colby tells President Ford how his predecessor James Schlesinger (then serving as Secretary of Defense) ordered CIA staffers to compile the "skeletons" in the Agency's closet, such as surveillance of student radicals, illegal wiretaps, assassination plots, and the three year confinement of a Soviet defector, Yuri Nosenko.

Document 3: Kissinger's Reaction
Memorandum of Conversation between President Ford and Secretary of State/National Security Adviser Henry Kissinger, 4 January 1975
Source: Gerald R. Ford President Library

An apoplectic Kissinger argues that the unspilling of CIA secrets is "worse than the days of McCarthyism" when the Wisconsin Senator went after the State Department. Kissinger had met with former DCI Richard Helms who told him that "these stories are just the tip of the iceberg," citing as one example Robert F. Kennedy's role in assassination planning. Ford wondered whether to fire Colby, but Kissinger advised him to wait until after the investigations were complete when he could "put in someone of towering integrity." The "Blue Ribbon" announcement refers to the creation of a commission chaired by then-vice president Nelson A. Rockefeller.

Document 4: Investigations Continue
Memorandum of Conversation between Kissinger, Schlesinger, Colby et al., "Investigations of Allegations of CIA Domestic Activities," 20 February 1975
Source: Gerald R. Ford Presidential Library

Cabinet and sub-cabinet level officials led by Kissinger discuss ways and means to protect information sought by ongoing Senate (Church Committee) and House (Pike Committee) investigations of intelligence community abuses during the first decades of the Cold War. Worried about the foreign governments that have cooperated with U.S. intelligence agencies, Kissinger wants to "demonstrate to foreign countries that we aren't too dangerous to cooperate with because of leaks."

www.gwu.edu/~nsarchiv/NSAEBB/NSAEBB222/index.htm
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The "plumbers"behind the Watergate break in and other Watergate operations were from within CIA ranks.  
Submitted by fedup2006-04-01 14:47:54
E. Howard Hunt and its liaison to the CIA, John Paisley. In recent years Paisley's involvement has led to speculation the CIA had a far greater hand in the operations of the Plumbers than originally thought at the time.

What is known is Paisley was assigned to the CIA's Office of Security (OS), of which Hunt was once a member. An August 9, 1971, David Young memo indicates he met with Paisley and OS Director Howard Osborn in which Paisley provided a list of objectives for the Special Investigations Unit 5-- a clear indication the CIA had a heavy role in identifying objectives and providing assistance to the Plumbers.
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The CIA’s fingerprints were all over Watergate. First, we should note the CIA had clear motives for helping oust Nixon. He was the ultimate "outsider," a poor California Quaker who grew up feeling bitter resentment towards the elite "Eastern establishment." Nixon, for all his arch-conservatism, was surprisingly liberal on economic issues, infuriating businessmen with statements like "We are all Keynesians now." He created a whole host of new agencies to regulate business, like the FDA, EPA and OSHA. He signed the Clean Air and Clean Water Acts  
Submitted by fedup2007-05-03 12:17:01
which forced businesses to clean up their toxic emissions. He imposed price controls to fight inflation, and took the nation fully off the gold standard. Nixon also strengthened affirmative action. Even his staffers were famously anti-elitist, like Kevin Philips, who would eventually write the bible on inequality during the 1980s, The Politics of Rich and Poor. Add to this Nixon’s withdrawal from Vietnam and Détente with China and the Soviet Union. Nixon and his Secretary of State, Henry Kissinger, had not only tried to remove control of foreign policy from the CIA, but had also taken measures to bring the CIA itself under control. Not surprisingly, Nixon and his CIA Director, Richard Helms, couldn’t stand each other. (Nixon fired him for failing to cover up for Watergate.) Clearly, Nixon was fighting at cross-purposes with the CIA and the nation’s elite.

As it turns out, the CIA had inside knowledge of Nixon’s dirty work. Nixon had created his own covert action team, "The Committee to Reelect the President," more amusingly known by its acronym, CREEP. The team consisted of two CIA agents — E. Howard Hunt and James McCord — as well as former FBI agent G. Gordon Liddy. They also employed four Cubans with long CIA histories. In fact, a CIA front called the Mullen Company funded their activities, which ranged from disrupting Democratic campaigns to laundering Nixon’s illegal campaign contributions.

The CIA not only had intimate knowledge of Nixon’s crimes, but it also acted as though it wanted the world to know them. When the FBI began investigating Watergate, Nixon tried using the CIA to cover up for him. At first the CIA half-heartedly complied, telling the FBI that the investigation would endanger CIA operations in Mexico. But a few weeks later it gave the FBI a green light again to proceed again with their investigation.

Furthermore, Watergate was exposed by the CIA’s main newspaper in America, The Washington Post. One of the two journalists who investigated the scandal, Robert Woodward, had only recently become a journalist. Previously Woodward had worked as a Naval intelligence liaison to the White House, privy to some of the nation’s highest secrets. He would later write a sympathetic portrait of CIA Director Bill Casey in a book entitled Veil: The Secret Wars of the CIA. It was Woodward who personally knew and interviewed "Deep Throat," the unnamed source who revealed inside information on Nixon’s activities. Many Watergate researchers consider one of Woodward’s old intelligence contacts to be a prime candidate for Deep Throat. 15

Despite all the facts of CIA involvement, Woodward and Bernstein made virtually no mention of the CIA in their Watergate reporting. Even during Senate hearings on Watergate, the CIA somehow managed to stay out of the spotlight. In 1974, the House would clear the CIA of any involvement in Watergate.

The CIA was not as lucky in 1974, when the Senate held hearings on James Jesus Angleton’s illegal surveillance of American citizens. These disclosures resulted in his firing. But that was nothing compared to the 1975 Church Committee. This Senate investigation looked into virtually every type of CIA crime, from assassination to secret war to manipulating the domestic media. The "reforms" that resulted from these hearings were mostly cosmetic, but the details that emerged shattered the CIA’s reputation forever. Interestingly enough, the two Senators who held these hearings — Frank Church and Otis Pike — were both defeated for reelection, despite a 98 percent reelection rate for incumbents.

The CIA wasn’t the only conservative institution that found itself embattled in the early 70s. This was a bad time for conservatives everywhere. America had lost the war in Vietnam. U.S. corporations had to cope with the rise of OPEC. The anti-poverty programs of Roosevelt’s New Deal and Johnson’s Great Society were causing a major redistribution of wealth. And Nixon was making things worse with his own anti-poverty and regulatory programs. Between 1960 and 1973, these efforts cut poverty in half, from 22 to 11 percent. Meanwhile, between 1965 and 1976, the richest 1 percent had gone from owning 37 percent of America’s wealth to only 22 percent. 16

At a 1973 Conference Board meeting of top American business leaders, executives declared: "We are fighting for our lives," "We are fighting a delaying action," and "If we don’t take action now, we will see our own demise. We will evolve into another social democracy." 17

The CIA to the rescue
In the mid-1970s, at this historic low point in American conservatism, the CIA began a major campaign to turn corporate fortunes around.

They did this in several ways. First, they helped create numerous foundations to finance their domestic operations. Even before 1973, the CIA had co-opted the most famous ones, like the Ford, Rockefeller and Carnegie Foundations. But after 1973, they created more. One of their most notorious recruits was billionaire Richard Mellon Scaife. During World War II, Scaife's father served in the OSS, the forerunner of the CIA. By his mid-twenties, both of Scaife's parents had died, and he inherited a fortune under four foundations: the Carthage Foundation, the Sarah Scaife Foundation, the Scaife Family Foundations and the Allegheny Foundation. In the early 1970s, Scaife was encouraged by CIA agent Frank Barnett to begin investing his fortune to fight the "Soviet menace." 18 From 1973 to 1975, Scaife ran Forum World Features, a foreign news service used as a front to disseminate CIA propaganda around the world. Shortly afterwards he began donating millions to fund the New Right.

Scaife's CIA roots are typical of those who head the new conservative foundations. By 1994 the most active were:

* Lynde and Harry Bradley Foundation
* Carthage Foundation
* Earhart Foundation
* Charles G. Koch
* David H. Koch
* Claude R. Lambe
* Philip M. McKenna
* J.M. Foundation
* John M. Olin Foundation
* Henry Salvatori Foundation
* Sarah Scaife Foundation
* Smith Richardson Foundation

Between 1992 and 1994, these foundations gave $210 million to conservative causes. Here is the breakdown of their donations:

* $88.9 million for conservative scholarships;
* $79.2 million to enhance a national infrastructure of think tanks and advocacy groups;
* $16.3 million for alternative media outlets and watchdog groups;
* $10.5 million for conservative pro-market law firms;
* $9.3 million for regional and state think tanks and advocacy groups;
* $5.4 million to "organizations working to transform the nations social views and giving practices of the nation's religious and philanthropic leaders." 19

The political machine they built is broad and comprehensive, covering every aspect of the political fight. It includes right-wing departments and chairs in the nation’s top universities, think tanks, public relations firms, media companies, fake grassroots organizations that pressure Congress (irreverently known as "Astroturf" movements), "Roll-out-the-vote" machines, pollsters, fax networks, lobbyist organizations, economic seminars for the nation’s judges, and more. And because corporations are the richest sector of society, their greater financing overwhelms similar efforts by Democrats.

Besides creating foundations, the CIA helped organize the business community. There have always been special interest groups representing business, like the U.S. Chamber of Commerce and the National Association of Manufacturers, and the CIA has long been involved with them. However, after 1973, a spate of powerful new groups would come into existence, like the Business Roundtable and the Trilateral Commission. These organizations quickly became powerhouses in promoting the business agenda.

Their efforts clearly succeeded. With the 1975 SUN-PAC decision, corporations persuaded government to legalize corporate Political Action Committees (the lobbyist organizations that bribe our government). By 1992, corporations formed 67 percent of all PACs, and they donated 79 percent of all campaign contributions to political parties. 20 In two landmark elections — 1980 and 1994 — corporations gave heavily and one-sidedly to Republicans, turning one or both houses of Congress over to the GOP. Democratic incumbents were shocked by the threat of being rolled completely out of power, so they quietly shifted to the right on economic issues, even though they continued a public façade of liberalism. Corporations went ahead and donated to Democratic incumbents in all other elections, but only as long as they abandoned the interests of workers, consumers, minorities and the poor. As expected, the new pro-corporate Congress passed laws favoring the rich: between 1975 and 1992, the amount of national household wealth owned by the richest 1 percent soared from 22 to 42 percent. 21

The CIA also helped create the conservative think tank movement. Prior to the 70s, think tanks spanned the political spectrum, with moderate think tanks receiving three times as much funding as conservative ones. At these early think tanks, scholars typically brainstormed for creative solutions to policy problems. This would all change after the rise of conservative foundations in the early 70s. The Heritage Foundation opened its doors in 1973, the recipient of $250,000 in seed money from the Coors Foundation. A flood of conservative think tanks followed shortly thereafter, and by 1980 they overwhelmed the scene. The new think tanks turned out to be little more than propaganda mills, rigging studies to "prove" that their corporate sponsors needed tax breaks, deregulation and other favors from government.

Of course, think-tank studies are useless without publicity, and here the CIA proved especially valuable. Using propaganda techniques it had perfected at the Voice of America and Radio Free Europe, the CIA and its allies turned American AM radio into a haven for conservative talk show hosts. Yes — Rush Limbaugh uses the same propaganda techniques that Muscovites once heard from Voice of America. The CIA has also developed countless other media outlets, like Capital Cities (which eventually bought ABC), major PR firms like Hill & Knowlton, and of course, all the Agency’s connections in the national news media. 22

The following is a typical example of how the "New Media" operates. As most political observers know, the Republicans suffer from a "gender gap," in which women prefer Democrats by huge majorities. This is, in fact, why Clinton has twice won the presidency. But, curiously enough, as the 90s progressed, conservative female pundits began popping up everywhere in the media. Hard-right pundits like Ann Coulter, Kellyanne Fitzpatrick, Laura Ingraham, Barbara Olson, Melinda Sidak, Anita Blair and Whitney Adams conditioned us to the idea of the conservative woman. This phenomenon was no accident. It turns out that Richard Mellon Scaife donated $450,000 over three years to the Independent Women's Forum, a booking agency that heavily seeds such female conservative pundits into the media. 23

Conclusion
The most obvious criticism of the New Overclass is that their political machine is undemocratic. Using subversive techniques once aimed at communists, and with all the money they ever need to succeed, the Overclass undemocratically controls our government, our media, and even a growing part of academia. These institutions in turn allow the Overclass to control the supposedly "free" market. It doesn't win all the time, of course — witness Bill Clinton's impeachment trial — but it does score an endless string of other victories elsewhere, all to the detriment of workers, consumers, women, minorities and the poor. We need to fight it with everything we've got.

c2ore.com/archives/?itemid=1965
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