Posted 01 August 2006 - 04:35 PM
Here is a passage from Barbara Honegger's book, October Surprise. She was one of the first writers to link Ted Shackley with the illegal activities of Ronald Reagan and George Bush:
"Y" claimed that the $40 million from the $60 million Mexican CREEP fund from the Shah of Iran had been wired, in two parts, to separate accounts in Bank Leu in Zurich, Switzerland-one account controlled by Iran and the other by the Czechs-by Merrill Lynch, whose chairman and chief executive officer was Donald Regan, President Reagan's future White House chief of staff. Regan had gotten to know and like William Casey when Casey was head of the Securities and Exchange Commission (SEC), also during the Nixon Administration.98 The Czechoslovakian connection is confirmed by Richard Brenneke's records, which show that he had had numerous dealings with Czech arms manufacturers in the early 1980's, and by reports that Brenneke's friend Robert Benes, whom he said also attended the Paris meetings, was a double agent for France and the Czechs.
Probably not coincidentally, a subsidiary of Merrill Lynch, Merrill Lynch Futures, reportedly loaned between $400,000 and $500,000 to Dr. Cyrus Hashemi, one of the Iranian arms dealers who had reportedly attended the Paris meetings, shortly after Reagan and Bush gained office, to finance both the transport of arms to Iran and activities against anti Khomeini dissidents abroad. This amount is comparable to that reportedly loaned to now-imprisoned ex-CIA covert operative Edwin Wilson in 1979: $500,000. With the loan, Wilson and George Bush's longtime CIA associate Theodore Shackley became 49 percent partners in EATSCO, the Egyptian American Transport and Services Corporation, which reportedly received an exclusive contract from the Pentagon to ship U.S. arms to Cairo following the signing of the Camp David Accords between Egypt and Israel in 1979. According to Wilson, silent partners in EATSCO were indicted Iran/Contra co-conspirator, Richard Secord, "off the reservation" CIA operative Thomas Clines, and Erich von Marbod who was then Deputy Director of the Pentagon's Defense Security Assistance Agency which, in an obvious conflict of interest, had recommended approval of the EATSCO contract. The reported president of EATSCO was Hussein K. Salem, an Egyptian. In 1983, EATSCO's partners, including Secord, were indicted for overcharging the U.S. government $8 million-intriguingly the same amount that Secord and his Iranian-American partner Albert Hakim are charged with having illegally skimmed from the Reagan-Bush Administration's secret operation to ship U.S. arms to Iran. In 1982, State Department advisor Michael Ledeen intervened in the case, suggesting to Assistant U.S. Attorney E. Lawrence Barcella that any alleged "billing abuses" in the EATSCO matter may, as in the Iran/Contra scandal, have been used to fund covert operations. The implication of the above reports is that Cyrus Hashemi's $500,000 loan may have gone to start what we will call "IRANSCO" in 1981, just as Edwin Wilson's $500,000 loan went to start EATSCO in 1979, with the same $8 million figure ending up in contention in U.S. courts and involving almost the same cast of characters. When Richard Secord retired from the Pentagon in 1983 in the wake of the mini-scandal, which had developed over his involvement with EATSCO, he became partners with Iranian middleman Albert Hakim, to whom he had been introduced by none other than Wilson, in another military equipment trading company, Stanford Technology Trading Group. The cycle then repeated itself, with Iran instead of Egypt being the recipient of arms. According to Informant "Y," EATSCO was in fact a "shake down cruise" for the far larger IRANSCO operation that followed it. "They used EATSCO to get the `bugs' out of the system," he said. "The Egyptian operation was used as a model for future operations. The $500,000 in both instances was needed to get things going-as deposits for the shippers."
When asked how his account regarding the transfer of the $40 million to Bank Leu in Zurich, Switzerland, squared with Richard Brenneke's claim that it had been wired to Banque Lambert in Brussels, Belgium, "Y" said that the reports were "not necessarily inconsistent" because the money from the Mexican account had long since been moved to an account or accounts in Europe, perhaps at Banque Lambert. The funds, he contended, may have been wired from Banque Lambert to the two accounts at Bank Leu. Alternatively, he said, after eight years his memory of the French intelligence report may have been incorrect, and the funds may have originated in Bank Leu in Switzerland and been transferred to Banque Lambert, as Brenneke claimed. This latter account squares better with one given by the former U.S. chief of the Shah's secret police, Mansur Rafizadeh.