Political Requirements of the Global Drug Trade
[Satya Center is proud to present the first part of author Peter Dale Scott's ground-breaking article on The Global Drug Meta Group, a lengthy investigation of the role of international drug dealers, intelligence services from major powers, Russian bankers and powerful global businessmen in the perpetuation of the global trade in heroin and international terrorism.
Scott reveals that drug dealers enjoy close relations with influential international bankers, weapons merchants, intelligence agents and military officers whose web of interconnecting interests can only be described as a "cartel".
Scott reveals that these drug cartels play a pivotal role in international relations, shaping the geo-strategic landscape in their own best interests while attracting political and military leaders of major countries around the world into partnerships of convenience designed to further the ideological, military and economic interests of the elites in those countries.
This series of articles will focus on the individuals connected to one global drug cartel, dubbed the Global Drug Meta Group by Scott, and describe a meeting at billionaire Saudi Arabian arms merchant Adnan Kashshoggi's villa in 1999 that arguably laid the groundwork for the terrorist bombings in Moscow called "The Russian 9/11", which triggered massive escalation of the war in Chechnya.]
Author's Note: (I wish to acknowledge the invaluable assistance in the preparation of this essay from N, a Russian who for the time being prefers to remain anonymous.)
Tajik authorities have claimed repeatedly that neither the US nor NATO exerts any pressure on the drug warlords inside Afghanistan. "There's absolutely no threat to the labs inside Afghanistan," said Avaz Yuldashov of the Tajikistan Drug Control Agency. "Our intelligence shows there are 400 labs making heroin there, and 80 of them are situated right along our border ... Drug trafficking from Afghanistan is the main source of support for international terrorism now," Yuldashov pointed out last year.
In the last three decades, three important facts have emerged about the international drug traffic. The first is that it is both huge and growing.
Narcotics are estimated to be worth between $500 billion and $1 trillion a year, an amount, according to UN Secretary General Kofi Annan in remarks to a United Nations General Assembly session in June 2003, that is greater than the global oil and gas industry, and twice as large as the overall automobile industry.
The second is that it is both worldwide and above all "highly integrated." At global drug summits such as the one in Armenia in 1993, representatives of the Sicilian Mafia, the Brighton Beach Organizatsiya, and Colombian drug lords, have worked out a common modus operandi, with the laundering of dirty money entrusted chiefly to the lawless Russian banks.
The third important fact, undeniable since the 1980 U.S. intervention in Afghanistan, is that governments with global pretensions will avail themselves, in pursuit of their own political ends, of the resources, both financial and political, of the drug traffic. It was striking in the 1980s that the CIA, in its choice of Afghan mujahedin leaders to back against the Soviet Union, passed over those with indigenous support in favor of those, notably Gulbuddin Hekmatyar, who dominated the heroin trade. The result was to enhance Hekmatyar's power until he became a leading heroin trafficker, not just in Afghanistan but in the world.
Three more important features of the global drug traffic have been less noticed; thus although I regard them as facts I shall refer to them not as facts but as propositions to be tested against evidence. The first proposition is that the highly integrated drug traffic industry, in addition to serving the political ends of world powers, has its own political as well as economic objectives. It requires that in major growing areas there must be limited state control, a condition most easily reached by fostering regional rebellion and warfare, often fought by its own private armies. This is the on-going situation of designed violence in every major growing area, from Lebanon to Myanmar, Colombia to Afghanistan.
Once the local power of drug armies was enough in itself to neutralize the imposition of state authority. But today there are increasing signs that those at the highest level of the drug traffic will plot with the leaders of major states to ensure, or even to stage, violence that serves the power of the state and the industry alike.
Thanks to extensive research in Russia, we now have initial evidence of a second and even more significant proposition: There exists on the global level a drug meta-group, able to manipulate the resources of the drug traffic for its own political and business ends, without being at risk for actual trafficking. These ends include the creation of designed violence to serve the purposes of cabals in political power – most conspicuously in the case of the Yeltsin "family" in the Kremlin, but allegedly, according to Russian sources, also for those currently in power in the United States.
One piece of evidence for this consists in a meeting which took place in July 1999 in southern France near Nice, at the villa in Beaulieu of Adnan Khashoggi, once called "the richest man in the world." Those at the meeting included a member of the Yeltsin cabal in the Kremlin and four representatives from the meta-group, with passports from Venezuela, Turkey, United Arab Emirates and Germany. Between them they allegedly enjoyed excellent relations with:
1) Ayman al-Zawahiri, the acknowledged mastermind of 9/11 and senior mentor to Osama bin Laden.
2) Soviet military intelligence.
3) the FARC, the Colombian revolutionary group that has become increasingly involved in the drug traffic.
4) the Kosovo Liberation Army, a similarly involved group.
5) (according to a well-informed Russian source) the CIA.
The third important proposition is that a meta-group of this scale does not just help government agencies make history. I hope to show that it, and its predecessors, are powerful enough to help make history themselves. However they do not do so overtly, but as a hidden Force X whose presence is not normally acknowledged in the polite discourse of academic political scientists. On the contrary, as we shall see, references to it are usually suppressed.
A Digression: Drugs, Meta-Groups and the Compradorial Revolution
The question arises whether this is the only such meta-group in the international drug milieu. My tentative answer is that there are indeed other focal nodes for organized international drug trafficking, often above the reach of the law. (The remnants of the dissident Hekmatyar drug network in Afghanistan would be a prime example.) What is special about this meta-group is its global reach, which makes it of especial interest to the CIA and other pro-American agencies committed to globalization.
A drug meta-group with such broad connections is not unprecedented. A clear predecessor was the Bank of Credit and Commerce International (BCCI), a drug-laundering bank which was of use to CIA Director William Casey precisely because of its corrupt global reach. As a Washington insider said to two Time reporters covering BCCI,
They were the only way we could talk to certain folks, and they were the only vehicle available for some transactions. Who else could wire something together to Saudi Arabia, China, Israel, and the U.S.?
It is worthy of note that Khashoggi has enjoyed intimate connections to both, as well as to western intelligence and western politicians.
The "wiring together" effected by drugs has helped give a significant boost to the global banking network, particularly in Russia and southeast Asia. In these areas it has also fostered trade and investment, bringing businessmen from previous diverse commercial areas into increasing contact with each other. From this perspective globalization can be seen as a compradorial revolution: compradorial classes have moved into positions of power, and in some cases their international networks have been more than a match for local state power.[6a]
There are three different ways in which this compradorial revolution has proceeded, and it could be shown that drugs have often helped supply a base for all three:
1) In some countries (as in Thailand, South Korea, Taiwan, and to some extent Indonesia) these classes have displaced military regimes. Drug-based fortunes clearly played a major role in the compradorial revolution of Thailand.
2) In some countries compradorial elements have succeeding in converting (or, depending on your point of view, corrupting) the cadres of socialist governments. Drugs have played a significant role in the compradorial embourgeoisement of China, Laos, and Cambodia, and may have played an indirect role in the case of Vietnam.
3) Recently – as in the "color revolutions" of eastern Europe and central Asia – compradorial elements have helped to oust the remnants of the former Soviet governing apparatus. I hope in this essay to give preliminary evidence that the global drug meta-group I have described has played a role in the "color revolutions" as well.
As to how many drug meta-groups exist in the world, I believe there are at least two. A second, which we will not examine here, oversees the new drug highway from north Myanmar (Burma) through the entrepreneurial zones of south China, and manages the international connections necessary to arrange for the smuggling of heroin and people into Australia and the eastern and western United States.
The relation of the west to this second or eastern meta-group is unknown, and in all probability it is highly complex and ambiguous. It is probably safe to say however that the global reach of the second meta-group, overseeing the much smaller flow of drugs east from Myanmar, is less than the first or western meta-group we shall discuss here, overseeing the far greater flow of drugs west from Afghanistan. (It has been estimated that by now Afghanistan supplies from 80 to 90 percent of the global heroin trade.)
The west, and particularly the United States, have not concealed their interest in the success of globalization and the "color revolutions." Unfortunately those who sing the praises of both neglect the terrible social costs of the drug traffic, and the Force X which so often is the underpinning of the compradorial revolution. Because the drug economy is often not integrated into the legal one, it tends to foster superwealth and income disparity. The benefits tend not to be enjoyed by a society as a whole, or even its middle class. This is even more true when the masters of the drug-traffic are not indigenous but alien (as is conspicuously the case in eastern Myanmar).
There is an undeniable western face to the dominant meta-group. One member of the meta-group at the 1999 meeting, Anton Surikov, had spent time at the London Centre for Defence Studies; and in addition Surikov had had contacts with at least one senior CIA representative. (Another member of the meta-group, former Lithuanian Defense Minister Audrius Butkevicius, was with Surikov at the London Centre.) We shall see that a third member, Ruslan Saidov, is said to have been paid as a CIA contract agent.
One of the alleged purposes of the meeting at the villa – but not the only one – was to give the Yeltsin "family" what it supposedly needed: a Russian 9/11.
The "Russian 9/11" in 1999: Bombings and Plans for War
Russia has been familiar for some time with charges that the bombings in Moscow in 1999, and an accompanying invasion of Russian Dagestan that rekindled the ongoing war in neighboring Chechnya, were both planned by representatives of the Islamist element in the Chechen resistance, in collusion with a representative of the Russian Kremlin.
Read synoptically, these stories indicate that the well-connected drug-trafficking meta-group, with connections to both the Kremlin and the CIA, arranged in advance for the bombings and invasion at the meeting in July 1999, at a French villa owned by the superrich arms merchant Adnan Khashoggi. The group allegedly operated with support from Saudi Arabia and organized global drug trafficking, some of it probably through Kosovo.
The group's business front, Far West, Ltd., is said to have CIA-approved contractual dealings with Halliburton for geopolitical purposes in the Caucasus, as well as dealings in Iraq with Diligence LLC, a group with connections to Joe Allbaugh (the FEMA chief in 2001) and to the President's younger brother Neil Bush. The head of Far West recently told a Russian outlet that "a well-known American corporation... is a co-founder of our agency."
The evidence for this western face of the group is laid out in an article by a so-called Yuri Yasenev, which is clearly a compilation of extracts from intelligence reports, on a Russian website. The article is cited – very selectively – as authoritative by a reputable Hoover Institution scholar, John B. Dunlop. But Dunlop completely ignores, one might say, suppresses, Yasenev's case as I have summarized it above. He uses the article instead to document a more familiar case: that in 1999 the Yeltsin "family" in the Kremlin dealt with this same group to create what might be called the "Russian 9/11."
When I say that Dunlop suppresses certain details, I do not mean to suggest that he does so conspiratorially, or even consciously. My notion of deep politics, which I have developed elsewhere, posits that in every culture and society there are facts which tend to be suppressed collectively, because of the social and psychological costs of not doing so. Like all other observers, I too have involuntarily suppressed facts and even memories about the drug traffic that were too provocative to be retained with equanimity.
The drug traffic is often the beneficiary of this suppression, which leaves it more free to act without interference. In Deep Politics I referred to the pervasive influence of a U.S. government-drug collaboration which I called "Operation X," looking at it from the perspective of a parapolitical manipulation of the traffic by the government. I wish now that I had written of a "Force X," a force which was no longer under total government control, and indeed could influence government behavior for its own ends.
Dunlop's thesis is in itself an alarming one. It is that men of influence in the Kremlin, building on the connections established by the wealthy oligarch Boris Berezovskii, were able to arrange for staged violence, in order to reinforce support for an unpopular Russian government. This staged violence took the form of lethal bombings in the capital and an agreed-upon incursion by Chechens into Russian Dagestan.
This credible thesis is even more alarming when we consider that both Khashoggi and Berezovskii have purchased significant political influence in the West as well. In 2003 Khashoggi was negotiating with Richard Perle, a member of the Cheney-Rumsfeld clique who at the time was still Chairman of the U.S. Defense Policy Board, to invest considerable Saudi money in Perle's company Trireme. Berezovskii is a shareholder in the software company, Ignite, of President Bush's delinquent brother Neil Bush.
More significantly, Khashoggi and his connections have shown in the past their ability to influence, even distort, U.S. foreign policy, to the detriment of the latter. An important example was the ill-fated so-called Ghorbanifar initiative during Iran-Contra, to sell arms to the mullahs in Iran in exchange for the release of American hostages:
Ghorbanifar was not acting alone. Although he led us to believe he was using Iranian money, his forward purchases and bridge deposits were actually being bankrolled by Adnan Khashoggi [and BCCI]....Khashoggi had an on-and-off relationship with Israel for many years and evidently had been in the loop as Ghorbanifar's backer from the very beginning.
Ghorbanifar could never have caused such embarrassment to the Reagan Administration if he had not been backed by deeper, hidden forces.
By the "Russian 9/11" I mean the bombings of Russian apartment buildings in 1999,accompanied by the pre-arranged (and partly staged) second Russian invasion of Chechnya. For some time the West has heard versions of the claim that both events were planned at the time by Russian intelligence. For example Patrick Cockburn reported as follows in the Independent:
Boris Kagarlitsky, a member of the Russian Academy of Sciences Institute of Comparative Politics, writing in the weekly Novaya Gazeta, says that the bombings in Moscow and elsewhere were arranged by the GRU (the Russian military intelligence service). He says they used members of a group controlled by Shirvani Basayev, brother of the Chechen warlord Shamil Basayev, to plant the bombs. These killed 300 people in Buikask, Moscow and Volgodonsk in September.
Cockburn's source, Boris Kagarlitskii, also accused Russian intelligence agents of planting at least one of the bombs.
Boris Kagarlitsky, a member of the Russian Institute for Comparative Politics, stated: "FSB officers were caught red-handed while planting the bomb. They were arrested by the police and they tried to save themselves by showing FSB identity cards." The first man to enter the basement, Police Inspector Andrei Chernyshev, related: "It was about 10 in the evening. There were some strangers who were seen leaving the basement. We were told about the men who came out from the basement and left the car with a licence number which was covered with paper. I went down to the basement. This block of flats had a very deep basement which was completely covered with water. We could see sacks of sugar and in them some electronic device, a few wires and a clock. We were shocked. We ran out of the basement and I stayed on watch by the entrance and my officers went to evacuate the people." Despite the arrest of the FSB officers by the police, they were quietly released when the secret service's Moscow headquarters intervened. The Observer reports that the next day, in an attempt to cover-up the discovery, "the FSB in Moscow announced that there had never been a bomb, only a training exercise."
Western scholarly analyses have seen the bombings and war as part of a stratagem to boost the popularity of the Kremlin, and particularly the little-known new Prime Minister Putin, for the coming presidential elections in November 1999. The most thorough study, by John Dunlop of the Hoover Institution, blames the plotting on three protégés of the Russian oligarch Boris Berezovskii – Valentin Yumashev, Alexander Voloshin, and Roman Abramovich – who at this point were members of Yeltsin's "Family" in the Kremlin. (As for Berezovskii himself, Dunlop writes that by mid-1999 "all of his real but beginning-to-dwindle political influence was obtained through the intercession of D'yachenko [Yeltsin's daughter] and Yumashev.")
 Asia Times, 10/27/05, http://www.atimes.com/atimes/Central_Asia/GJ27Ag02.html.
Nick Kochan, The Washing Machine: How Money Laundering and Terrorist Financing Soils Us (Mason, OH: Thomson, 2005), 124.
 Center for Strategic and International Studies, Washington, 2004; quoted in Kochan, The Washing Machine, 124: "The effects of this worldwide, highly integrated industry have been felt from Colombia to Thailand, from Afghanistan to Sudan, and from Russia to the United States. No country has been impervious. Transnational drug networks have exploded in response to the new conditions in the former Soviet Union. Particularly menacing are the connections that have been identified between networks in Latin America, Central and Eastern Europe, and the Soviet successor states."
Robert I. Friedman, Red Mafiya: How the Russian Mob Has Invaded America (Boston: Little Brown, 2000), 208-09.
 Alfred W. McCoy, The Politics of Heroin in Southeast Asia (Chicago: Lawrence Hill Books/ Chicago Review Press, 2001); Peter Dale Scott, Drugs, Oil, and War (Lanham, MD: Rowman & Littlefield, 2003).
 Jonathan Beaty and S.C. Gwynne, The Outlaw Bank: A Wild Ride into the Secret Heart of BCCI (New York: Random House, 1993), 347.
[6a] A comprador is an agent who acts as intermediary between local and international commerce. The term is used pejoratively in Marxist literature, but I use it neutrally here. Each compradorial revolution must be judged on its own merits
 "According to the UN, opium production [in Afghanistan] peaked in 2004 to near record levels of 4,200 metric tonnes - nearly 90% of the world market" (BBC News, 4/26/05, http://news.bbc.co.uk/1/hi/world/south_asia/4487433.stm).
The former dominance of the Burma drug trade by the Taiwan-based Guomindang (GMD) has now been replaced in press accounts by the control of the United Wa State Army, an ostensibly indigenous group. At the heart of the Wa Army, however, control of the traffic by Taiwan intelligence endures. See Bertil Lintner, Burma in Revolt: Opium and Insurgency since 1948 (Chiang Mai: Silkworm, 1999), 321, 324, 380.
 Letter of Anton Surikov to Oleg Grechenevsky, discussed below: "I am personally acquainted with Mr. Ermarth as political scientist since 1996. It's well known by many people and we never hid this fact." Fritz Ermath did not retire from the CIA until 1998. Cf. Argumenty i Facty, 9/15/99, http://www.aif.ru/oldsite/986/art010.html. That the two men met in 1996 was indeed public knowledge. The Russian journal Commersant published a photo of the two men and others at the International Seminar on Global Security in Virginia, April, 1996.
 Interview, http://www.pravda.info/region/3601.html, discussed below. Cf. Letter of Anton Surikov to Oleg Grechenevsky, discussed below: "We cooperate with the American side in the sphere of commercial transportation not on the basis of direct commercial contracts between our agency [Far West, Ltd.] and the U. S. government, but through the intermediary company co-founded by the agency and a private U.S. company, which in its turn also interacts with the U.S. government."
 Yuri Yasenev, "Rossiyu zhdet oranzhevaya revolytsiya" ("An Orange Revolution is in Store for Russia"), http://www.compromat.ru/main/surikov/saidov.htm.
John B. Dunlop, "Storm in Moscow": A Plan of the Yeltsin "Family" to Destabilize Russia
The Hoover Institution, October 8, 2004, http://www.sais-jhu.edu/programs/res/papers/Dunlop%20paper.pdf.
 Peter Dale Scott, Deep Politics and the Death of JFK (Berkeley: University of California Press, 1998), 6-15.
 See the anecdote in the latest edition of Alfred W. McCoy, The Politics of Heroin: CIA Complicity in the Global Drug Traffic (Chicago: Lawrence Hill Books/ Chicago Review Press, 2003), xii; discussed also in Peter Dale Scott, "The Sleep of Reason: Denial, Memory-Work, and the Reconstruction of Social Order," Literary Responses to Mass Violence (Waltham, MA: Brandeis University, 2004).
 Scott, Deep Politics, 164-81.
 This distinction between a government operation ad a socio-political force reflects the distinction I make between parapolitics and deep politics (Scott, Deep Politics, 6-12).
 Seymour Hersh, New Yorker, 3/17/03, http://www.newyorker.com/fact/content/?030317fa_fact. Soon after the exposure of Perle's contact with Khashoggi, which, Hersh argued, violated a federal Code of Conduct for government employees, Perle resigned his influential position as Chairman of the Defense Policy Board.
 Interfax, 9/21/05. See below.
 Richard Secord, with Jay Wurts, Honored and Betrayed: Irangate, Covert Affairs, and the Secret War in Laos (New York: John Wiley, 1992), 283-84; cf. Robert Parry, Secrecy & Privilege: Rise of the Bush Dynasty from Watergate to Iraq (Arlington, VA: Media Consortium, 2004), 136, 139.
 Patrick Cockburn, "Russia 'planned Chechen war before bombings,'" Independent, 1/29/00, http://www.naqshbandi.net/haqqani/features/caucasus/news/stepashin_confession.htm.
Nafeez Mossadeq Ahmed, "The Smashing of Chechnya: An International Irrelevance.
A Case Study of the Role of Human Rights in Western Foreign Policy"
John B. Dunlop, "`Storm in Moscow': A Plan of the Yeltsin "Family" to Destabilize Russia
The Hoover Institution, October 8, 2004, 15-17
Dunlop, "`Storm in Moscow,'" 18.
The Meeting in Khashoggi's Villa, July 1999
A crucial piece of evidence for this thesis of Kremlin-structured violence is the meeting in July 1999, when Alexander Voloshin met in southern France with the Chechen warlord Shamil Basaev. In Dunlop's words,
On the day following the initial incursion of rebel forces into the Dagestani highlands in early August of 1999, the investigative weekly Versiya published a path-breaking report claiming that the head of the Russian Presidential Administration, Aleksandr Voloshin, had met secretly with the most wanted man in Russia, Shamil' Basaev, through the good offices of a retired officer in the GRU, Anton Surikov, at a villa belonging to international arms merchant Adnan Khashoggi located between Nice and Monaco. A source in French intelligence was credited by Versiya with supplying this information. The article stirred major interest in the Russian media, but at the time documentary confirmation was lacking.
By July of 2000, Versiya, in an effort of persistent journalistic digging, had unearthed what it regarded as the full story of what had occurred, with an acknowledged assist from French and Israeli intelligence. "The meeting [of Voloshin and Basaev]," the weekly related, "which supposedly took place at the dacha of the international arms dealer Adnan Khashoggi in the small town of Beaulieu near Nice, occurred on 4 July 1999. Sources in the French special services had earlier communicated that information, in particular a certain professor of political science, a specialist in issues of Russian defense, security, and organized crime. He is well known for his contract work for French government establishments, including French counter-intelligence."110....[110Petr Pryanishnikov, "Voloshin I Basaev na lazurnom beregu: foto na pamyat'," Versiya, 4 July 2000. The article, accompanied by a photo, can be found at: http:www.compromat.ru/main/voloshin/basaev.htm]
The investigative weekly then went on to summarize what it had learned from French and Israeli intelligence, as well as from its own journalistic digging: "A luxurious villa in the French city of Beaulieu, located between Nice and the principality of Monaco. This villa, according to the French special services, belongs to the international arms dealer Adnan Khashoggi. He is an Arab from Saudi Arabia, a billionaire with a complicated reputation. According to the French special services, and also to the French press, in June of 1999 there took up residence at the villa a Venezuelan banker named Alfonso Davidovich.111. . .[111 The article "Rossiyu zhdet oranzhevaya revolytsiya," compromat.ru, 17 December 2004 reports that Davidovich lives in Munich and enjoys both German and Venezuelan citizenship. He is also said to be personally acquainted with international arms dealer Khashoggi.]
In the Latin American press, he is said to be responsible for laundering the funds of the Columbian left insurrection organization FARC, which carries out an armed struggle with the official authorities, supported by the narcotics business."
Dunlop's massively documented essay is 52 pages long, with 142 footnotes. But having thus provocatively included references to both Khashoggi and narcotics, Dunlop does not mention either again. The failure to discuss Khashoggi is particularly surprising. If indeed the meeting took place at his villa, the proceedings were not only likely to be recorded, one would think that they were intended to be recorded.
One would also expect the participants to be confident that the recordings would reach western intelligence, as apparently they promply did. "In France and in the ranks of Israeli intelligence, Versiya wrote, it had been reported that `there exists a video-tape of the meeting at the villa in Beaulieu.'" One would have expected that this video-tape might reach, not just the French and Mossad, but Khashoggi's long-time associates in U.S. intelligence as well.
TO BE CONTINUED. . .
Although Dunlop does not mention it, Khashoggi "himself, in a letter addressed to Versiya, denied the allegation that the meeting occurred specifically at his estate" (Versiya, 2/3/00). The book Blowing Up Russia goes further, arguing that "no such meeting took place, and someone deliberately misinformed the Russian media." The logic advanced for this conclusion is that the bombings were not needed "by the insurgents in Chechnya to encourage the legal recognition of their independent republic" (Yuri Felshtinsky and Alexander Litvinenko, Blowing Up Russia [New York: S.P.I. Books, 2002], 105, 108). However this "logic" ignores the more likely motive of Basaev: to weaken the influence of the moderate Chechen leader Maskhadov, and create future political space for action by Salafi Muslim jihadists. See Shireen T. Hunter, Islam in Russia: The Politics of Identity and Security (Armonk, NY: M.E. Sharpe, 2004), 152-55.
John B. Dunlop, "Storm in Moscow": A Plan of the Yeltsin "Family" to Destabilize Russia
The Hoover Institution, October 8, 2004.