JFK Murder Part 2
Sat Jan 27, 2007 17:45

the assassination. He blamed it on the report being “put together very fast”. What McCloy did not know was that J. Edgar Hoover was withholding evidence from the Warren Commission. Nor was he aware of the Hoover telephone call to LBJ on 24th November, 1963, when he said: “The thing I am most concerned about… is having something issued so we can convince the public that Oswald is the real assassination.”

At a meeting with J. Lee Rankin on 22nd January, 1964, McCloy was told that according to the Texas attorney general, Oswald had been an undercover agent of the FBI since September 1962. According to Rankin, his agent number was 179 and was being paid $200 a month.

McCloy was also in communication with the Time-Life executive, C. D. Jackson, about the Zapruder film. Jackson sent McCloy blown-up transparencies of the film that revealed that John F. Kennedy and Connally had been hit by different bullets. McCloy also questioned Connally’s doctor at the hospital, who was also of the opinion that he had been hit by a separate bullet from Kennedy.

In an interview he gave on 3rd July, 1967, McCloy said: “I think there’s one thing I would do over again. I would insist on those photographs and the X-rays having being produced before us.” During the investigation members of the Warren Commission were told by Earl Warren that the Kennedy family was blocking access to these photographs and X-rays.

McCloy initially dismissed the idea of the magic bullet but he was persuaded to change his mind. So much so, when Richard Russell, Thomas Hale Boggs and John Sherman Cooper said that they had “strong doubts” about the lone gunman theory, McCloy took the side of Gerald R. Ford and Allen Dulles. In fact, McCloy played the main role in persuading the three men to sign the Warren Commission report that they did not believe in.

During 1964 McCloy was also working for one of Milbank, Tweed, Hadley & McCloy law firm’s most important clients, M. A. Hanna Mining Company. McCloy had several meetings with Hanna’s chief executive officer, George M. Humphrey. The two men had been close friends since Humphrey was Eisenhower’s Treasury Secretary. Humphrey was very concerned about the company’s investment in Brazil. Hanna Mining was the largest producer of iron ore in the country. However, after Joćo Goulart had become president in 1961, he began to talk about nationalizing the iron ore industry.

Goulart was a wealthy landowner who was opposed to communism. However, he was in favour of the redistribution of wealth in Brazil. As minister of labour he had increased the minimum wage by 100%. Colonel Vernon Walters, the US military attaché in Brazil, described Goulart as “basically a good man with a guilty conscience for being rich.”

The CIA began to make plans for overthrowing Goulart. A psychological warfare program approved by Henry Kissinger, at the request of telecom giant ITT during his chair of the 40 Committee, sent U.S. PSYOPS disinformation teams to spread fabricated rumors concerning Goulart.

McCloy was asked to set up a channel of communication between the CIA and Jack W. Burford, one of the senior executives of the Hanna Mining Company. In February, 1964, McCloy went to Brazil to hold secret negotiations with Goulart. However, Goulart rejected the deal offered by Hanna Mining.

The following month Lyndon B. Johnson gave the go-ahead for the overthrow of Joćo Goulart (Operation Brother Sam). Colonel Vernon Walters arranged for General Castello Branco to lead the coup. A US naval-carrier task force was ordered to station itself off the Brazilian coast. As it happens, the Brazilian generals did not need the help of the task force. Goulart’s forces were unwilling to defend the democratically elected government and he was forced to go into exile.

David Kaiser points out in his book, American Tragedy: Kennedy, Johnson, and the Origins of the Vietnam War (2000) that Johnson’s actions was a return to Eisenhower’s foreign policy where democratically elected leaders in the third world were removed on behalf of American industrialists. As Kai Bird commented in The Chairman: John J. McCloy: “ The Johnson administration had made clear its willingness to use its muscle to support any regime whose anti-communist credentials were in good order.”

in 1975 McCloy established the McCloy Fund. The main purpose of this organization was to promote German-American relations. The initial funding came from German industrialists. In 1982, the chairman of the Krupp Foundation, Berthold Beitz, gave the McCloy Fund a $2 million grant.

Three years later, the president of Germany, Richard von Weizsacker, conferred honorary German citizenship on McCloy. He praised McCloy’s “human decency in helping the beaten enemy to recover” and his efforts to build “one of the free and prosperous countries in the world.” Weizsacker had good reason to be thankful to McCloy. His father was Ernst von Weizsacker, a leading official in Adolf Hitler’s government. He was found guilty of crimes against humanity at Nuremberg and sentenced to seven years. McCloy was the one who arranged for him to be released in 1950.

John McCloy developed a close relationship with Mohammad Reza Pahlavi (Shah of Iran), who gained power in Iran during the Second World War. McCloy's legal firm, Milbank, Tweed, Hadley & McCloy, provided legal counsel to Pahlavi. The Chase International Investment Corporation, which McCloy established in the 1950s, had several joint ventures in Iran.

McCloy was also chairman of the Chase Manhattan Bank. Pahlavi had a personal account with the bank. So also did his private family trust, the Pahlavi Foundation. Kai Bird (The Chairman: John J. McCloy: The Making of the American Establishment) has argued: "Each year, the bank handled some $2 billion in Iranian Eurodollar transactions, and throughout the 1970s Iran had at least $6 billion on deposit at various branches around the world." As one financial commentator pointed out: "Iran became the crown jewel of Chase's international banking portfolio."

In January 1978, mass demonstrations took place in Iran. McCloy became concerned that Mohammad Reza Pahlavi would be overthrown. This was a major problem as outstanding loans to the regime amounted to over $500 million. McCloy went to see Robert Bowie, deputy director of the CIA. Bowie, who had just returned from Iran, was convinced that the communist Tudeh Party was behind the protests and were guilty of manipulating the Fedayeen and Mujahadeen. Over the next few months, McCloy organized a campaign to persuade President Jimmy Carter to protect the regime. This included David Rockefeller, Nelson Rockefeller and Henry Kissinger making deputations to the administration.

Despite the fact that Iranian troops had killed over 10,000 demonstrators during the disturbances, on 12th December, 1978, President Jimmy Carter issued a statement saying: "I fully expect the Shah to maintain power in Iran... I think the predictions of doom and disaster that come from some sources have certainly not been realized at all. The Shah has our support and he also has our confidence." The following month Mohammad Reza Pahlavi fled the country and on 1st February, 1979, Ayatollah Khomeini returned from exile to form a new government.

McCloy asked President Carter to allow the Shah to live in the United States. Carter refused because he had told by his diplomats in Iran that such a decision might encourage the embassy being stormed by mobs. As a result McCloy made preparations for the Shah to stay in the Bahamas. David Rockefeller arranged for his personal assistant at Chase Manhattan, Joseph V. Reed, to manage the Shah's finances.

Rockefeller also established the highly secret, Project Alpha. The main objective was to persuade Carter to provide a safe haven for Mohammad Reza Pahlavi (code-named "Eagle"). McCloy, Rockefeller and Kissinger were referred to as the "Triumvirate". Rockefeller used money from Chase Manhattan Bank to pay employees of Milbank, Tweed, Hadley & McCloy who worked on the project. Some of this money was used to persuade academics to write articles defending the record of Pahlavi. For example, George Lenczowski, professor emeritus at the University of California, was paid $40,000 to write a book with the "intention to answer the shah's critics".

Kissinger telephoned Zbigniew Brzezinski, National Security Advisor to Carter, on 7th April, 1979, and berated the president for his emphasis on human rights, which he considered to be "amateurish" and "naive". Brzezinski suggested he talked directly to Jimmy Carter. Kissinger called Carter and arranged for him to meet David Rockefeller, two days later. Gerald Ford also contacted Carter and urged him to "stand by our friends".

McCloy, Rockefeller and Kissinger arranged for conservative journalists to mount an attack on Carter over this issue. On 19th April, George F. Will wrote about Carter and the Shah and said; "It is sad that an Administration that knows so much about morality has so little dignity."

On 19th April, Rosalynn Carter wrote in her diary: "We can't get away from Iran. Many people - Kissinger, David Rockefeller, Howard Baker, John McCloy, Gerald Ford - all are after Jimmy to bring the shah to the United States, but Jimmy says it's been too long, and anti-American and anti-shah sentiments have escalated so that he doesn't want to. Jimmy said he explained to all of them that the Iranians might kidnap our Americans who are still there."

McCloy had meetings with President Carter in the White House on 16th May and 12th June where he outlined his reasons for providing Mohammad Reza Pahlavi with sanctuary. Carter listened politely to his arguments but refused to change his mind.

During the summer of 1979 McCloy contacted Zbigniew Brzezinski, Cyrus Vance, Walter Mondale and Dean Rusk about the Shah being allowed to live in the United States. McCloy told them that Carter's refusal to provide sanctuary to an old U.S. ally was "ungentlemanly" and dismissed the idea that lives in Iran might be jeopardized. Vance later recalled that: "John (McCloy) is a very prolific letter writer. The morning mail often contained something from him about the Shah".

In July 1979, Mondale and Brzezinski told Jimmy Carter that they had changed their minds and now supported asylum for the Shah. Carter replied: "F*** the Shah. I'm not going to welcome him here when he has other places to go where he'll be safe." He added that despite the fact that "Kissinger, Rockefeller and McCloy had been waging a constant campaign on the subject" he did not want the Shah "here playing tennis while Americans in Teheran were being kidnapped or even killed."

McCloy then tried another tactic in order to destabilize Carter's administration. In September, a story was leaked that the CIA had "discovered" a Soviet combat brigade in Cuba. It was claimed that this violated the agreement reached during the Cuban Missile Crisis. McCloy, who had negotiated the agreement with Adlai Stevenson and the Soviets in 1962, knew this was not true. The agreement said that only those Soviet troops associated with the missiles had to leave the island. There was never a complete ban on all Soviet troops in Cuba. Therefore the presence of Soviet combat troops in Cuba was not a violation of the 1962 agreement.

In October, 1979, David Rockefeller's assistant, Joseph V. Reed, called the State Department and claimed that the Shah had cancer and needed immediate treatment in a U.S. medical facility. Cyrus Vance now told Carter that the Shah should be allowed in as a matter of "common decency". Carter's chief of staff, Hamilton Jordan, argued that if the Shah died outside the United States, Kissinger and his friends would say "that first you caused the Shah's downfall and now you've killed him." Carter replied: "What are you guys going to advise me to do if they overrun our embassy and take our people hostage?"

Faced with the now unanimous opposition of his closest advisers, the president reluctantly agreed to admit the Shah. He arrived at New York Hospital on 22nd October, 1979. Joseph V. Reed circulated a memo to McCloy and other members of Project Alpha: "Our mission impossible is completed. My applause is like thunder." Less than two weeks later, Iranian militants stormed the U.S. Embassy in Teheran and took hostage 66 Americans. Thus beginning the Iranian Hostage Crisis.

McCloy now persuaded Jimmy Carter to freeze all Iran's assets in the United States. This was the day before Iran's $4.05 million interest payment was due on its $500 million loan. As this was not now paid, Chase Manhattan Bank announced that the Iranian government was in default. The bank was now allowed to seize all of Iran's Chase accounts and used this money to "offset" any outstanding Iranian loans. In fact, by the end of this process, the bank ended up in profit from the deal.

Before looking further at the evolution of the Control Council, a closer look at General William Draper’s career is needed. As previously mention Draper, while employed at Dillon and Reed was in charge of the Thyssen account. He worked closely with the man in charge of this account with Brown Brothers and Harriamn, Prescott Bush. Draper had a very dark side that extended to the present day. Draper advocated eugenics. The reader should not confuse General William Draper with Wickliffe Draper, the founder of the Pioneer Fund, although they were related. In 1932, William Draper financed the International Eugenics Congress. Doubts remain if Draper was using his own money or money from the Thyssen account or other corporate accounts. Draper helped select Ernst Ruaudin as chief of the world eugenics movement, who used his office to promote what he called Adolf Hitler's holy, national and international racial hygienic mission.

Prescott Bush shared Draper’s view on eugenics. In fact, late in Prescott’s first run for office in 1950 he was exposed as an activist in that section of the old fascist eugenics movement. Due to that exposure, Prescott lost his first bid for office.

In 1958, Eisenhower appointed Draper as head of a committee to study the proper course for U.S. military aid to other countries. A year later Draper changed the focus of the committee and recommended that the U.S. government react to the threat of the population explosion' by formulating plans to depopulate the poorer countries. The growth of the world's non-white population, he proposed, should be regarded as dangerous to the national security of the United States. Eisenhower rejected the recommendation.

In the 1960s, Draper founded the Population Crisis Committee and the Draper Fund, and joined with the Rockefeller and Du Pont families to promote eugenics as population control. The Rockefeller family has been associated with eugenics since the turn of the century. In 1950 and 1951, John Foster Dulles, then chairman of the Rockefeller Foundation, led John D. Rockefeller III on a series of world tours, focusing on the need to stop the expansion of the non-white populations. In November 1952, Dulles and Rockefeller set up the Population Council, with tens of millions of dollars from the Rockefeller family.

General Draper served as George Bush’s (the father) population expert. While serving in Congress, George Bush chaired the Republican Task Force on Earth Resources and Population. As chairman of the Task Force Bush invited Professors William Shockley and Arthur Jensen to explain to the committee how allegedly runaway birth-rates for African-Americans were down-breeding the American population. On August 5, 1969, Bush summed up the testimony his black-inferiority advocates had given to the Task Force before congress. As a candidate for Congress in 1964, Bush had campaigned against the passage of the 1964 Civil Rights Act.

George Bush was U.S. ambassador to the United Nations in 1972, where his friends urged the U.S. Agency for International Development to make an official contract with the old Sterilization League of America. The League had changed its name twice again, and was now called the Association for Voluntary Surgical Contraception

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