TERRY REED / JOHN CUMMINGS INTERVIEW

Hour 1

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On April 27, 1994, on Tom Donahue's now defunct shortwave radio program, "America's Town Forum", Donahue's guests were Terry Reed and John Cummings. Reed and Cummings are the authors of the bestseller, Compromised: Clinton, Bush and the CIA.

Because Donahue offers audio cassette tapes of his shows for those who wish to purchase them, I sent a check to Mr. Donahue for a tape of that night's show. Unfortunately (although Mr. Donahue did finally send the tape of another show, featuring Larry Nichols), the tape did not arrive after I had waited a reasonable time. So I again wrote to Mr. Donahue et al., including a photocopy of the cancelled check I had sent them and demanding my tape.

I waited. Still no reply. Eventually I just gave up on ever getting the tape. I was not too ticked off at Mr. Donahue because I knew he was going through other troubles at the time. I figured he was just not well organized.

Today, finally, after more than 4 months, after I had long since given up on getting the Reed/Cummings tape, today, finally, it arrived. I have just made a backup of the tape and am now prepared to transcribe it.

Before I start, here is some info that was included with the tape:

Address to write to Tom Donahue: As of July 21, 1994 Letters only -- No post cards or packages.

Tom Donahue #24979077 C1
Mansfield Law Enforcement Center
1601 Heritage Parkway, Mansfield, Texas 76063

At this time Tom does have access to a telephone, however he can only call "collect". He can't make local calls or 800 calls, just collect calls. If you would like to give your permission for Tom to call you collect, do so by writing to Tom at the above address.

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TOM DONAHUE:
Good day. Welcome, America. Tom Donahue program. Thanks so much for joining us.

Well many "viewer rats" are celebrating "Tricky Dick Day". Um, I always have, and will, have respect for the President and the presidency -- the actual office. The office holder at that time and, I guess, the "statesman at large" -- I feel he caused a lot of great damage to this country: regional government, for one; selling out our POWs; took him 5 years to get us out of [the] Vietnam war, when he [had] promised in his first term we'd be out. He was a Rockefeller stooge and a Kissinger associate for many years, until even they turned on him. {1}.

But so much for Nixon... Tricky Dick Nixon Day. We have two very special guests. And the book is absolutely a blockbuster. It's everything it's cooked up to be. The book is, Compromised: Clinton, Bush and the CIA. How the presidency was co-opted by the CIA. Terry Reed and John Cummings. Indeed, it's my privilege and pleasure to have you on "America's Town Forum".

TERRY REED:
Thank you very much, Tom. This is Terry speaking. [CN Note: The interview was conducted via a 3-way phone hookup.]

JOHN CUMMINGS:
Hi, this is John...

DONAHUE
O.K. Hi, John.
CUMMINGS
Hi! And it's a pleasure to be here.
DONAHUE
We're gonna start off with Terry [Reed] first.

Terry, why... I guess, whoever selected the title, it's a great title. Explain to our listeners what you mean by "compromised" when it comes to Clinton, Bush and the CIA.

REED
Well not only is that a word that's in the media a lot now, but, having been in Air Force intelligence, that's a word used considerably in, you know, intelligence training: talking about compromising classified material. But I felt it was a very appropriate title in that both George Bush and Bill Clinton compromised themselves, um made themselves open for attack, by being mutually involved in a clandestine operation which was CIA- backed and run out of the state of Arkansas.

So that's basically the core, the core premise behind the title.

DONAHUE
Some would be astonished that you would refer to Clinton being connected in any way, shape, or form with intelligence agencies. Many see Clinton as a coward and someone that shirked his duty {2} and was not involved with any military or intelligence apparatuses in this country -- except, maybe outside the country, such as the KGB.
REED
Well actually, I think if people will study it closely, there's a rumor circulating that Bill [Clinton] was actually working for the CIA station chief out of London, a man by the name of Kurt Meyer(sp?), and during his trips to the USSR (which, you know, became a matter of public debate during the '92 campaign on what he was doing there). But I don't find it shocking at all to find politicians involved with intelligence operations, since that's typically how the CIA is trained to penetrate and subvert foreign governments, is, you compromise politicians and get them on your side, normally through blackmail.
DONAHUE
Um-hmm [understands].

Let me ask you about your background. Why don't you fill our listeners in, give us kind of a biographical sketch?

REED
O.K. I was a true "baby boomer", born in 1948, raised in southwest Missouri, 21 miles from Harry Truman's birthplace and hometown, Lamar, Missouri. I'm from Carthage, Missouri. I'm the oldest of 6 children, raised to be patriotic and serve my country. I did so. I was in Air Force intelligence for 8 years. I was in Thailand, in a top-secret outfit called, "Task Force Alpha", that oversaw the secret war in Laos; the "deniable war" that Richard Nixon was running -- very apropos day to be discussing...
DONAHUE
Yeah. Another prize, another accolade, that should be passed along to Nixon for that, huh?
REED
Yeah. Yeah, I feel, just as you stated, that he really let the veterans down as well as the country. He tried to be a statesman and a commander-in-chief simultaneously. And I don't think you can do that.
DONAHUE
Well I think he said it best on "60 Minutes", this was a replay of his interview with Mike Wallace, in 1968, where he stated emphatically that he'd rather be off writing books and lecturing and maybe even being a student again at Oxford University [sic] -- though he didn't go there. Clinton did. But he [Nixon] said he got "caught by the political virus", and he said, "When it catches you, there's no way..."
REED
"...there's no antidote", I believe is what he said.
DONAHUE
...no. Wait a minute. Yeah....
REED
"There's no drug." Yeah, I saw that interview.

But yeah, I was in intelligence, in support of Air America's operations over in Thailand. And that's where I met several of the key players that would later surface in the Iran-Contra scandal, you know, years later, in 1986.

But after becoming disillusioned with peacetime military, I got out, honorably, and went into a field, a very technical field, which just by accident... I mean, I chose it, I was attracted to it, then found out once I was in it that it was full of KGB and all kinds of espionage activity. So I was "resurrected" and recruited to work undercover for both the FBI and CIA, monitoring the pilfering of defense department secrets to Moscow by both Hungarian firms as well as the Japanese.

And in the course of doing that, I met an undercover agent who was using the code name John Cathey, in Oklahoma in 1982.

DONAHUE
Let me stop you right there. We've gotta take our break. When we come back, we want the rest of the story.

Terry Reed. John Cummings. The book is Compromised.

[...commercial break...]

DONAHUE
We're back. Tom Donahue, "America's Town Forum", patriotism in action.

In order to have a better phone sounding quality, we're gonna have Terry out of the mix for just a few minutes here, and we're gonna stay with... Uh, actually, we're gonna stay with Terry [Reed] and come back to John Cummings in just a minute or two.

Um, Terry, let's talk about this [John] Cathey figure. Who was that?

REED
Well I was up to 1982. And through the result of working for a little over a year and a half with the FBI in Oklahoma City, this operation I was working on expanded overseas. And they had to bring in the CIA and I was introduced to this guy, John Cathey, who subsequently becomes Oliver North, the man reporting to the National Security Council on the famous Toshiba case, the case in which Toshiba Machine Tool was stealing American propeller technologies. The Soviets wanted quiet-running propellers for their nuclear submarines. And we had invented that and they were using this Japanese machine-tool company to gain access to that technology. That's how I came into play with Oliver North in 1982.
DONAHUE
How long-standing was your relationship with Oliver North?
REED
Well, for quite a while. It went on through, I must say, mid-to- late '85, when I moved to Mexico. I was sort of handed off into another operation that had found its genesis in western Arkansas. But North and I, being veterans, hit it right off. And philosophically we agree. I think if you read the book you know (as I believe you have) right in the beginning, we start off with an Oliver North conversation and our mutual disdain for...
DONAHUE
...Nixon and Kissinger.
REED
Nixon and Kissinger. Yeah.
DONAHUE
Um-hmm [understands].
REED
But our attraction came primarily not only through our philosophical alignment but our shared war stories and what not.

But it put me in a perfect position in 1983, late 1983, to be introduced to a man by the name of Barry Seal, Adler Berriman Seal, who was also a CIA operative working out of a little town called Mena, Arkansas, in western Arkansas. So that's where the story sort of launches off into I think what is probably the most explosive element of the book.

DONAHUE
Absolutely. And we have Oliver North running for the United States senate.
REED
Um-hmm [understands].
DONAHUE
Many feel he was set up and betrayed in the Iran-Contra affair. But so many don't know his role in this {3}... And I'll let you spell it out. What was Oliver North's role in Mena, Arkansas?
REED
Well I consider this, him, the oversight agent. Certainly reporting directly either to CIA director Casey or to someone very close to him. The support that we received and the materiel we had access to was just phenomenal. This was not a real low key operation, even though it was in a very remote region of western Arkansas.

But the Oliver North that I knew was sort of a very loose, business manager type that didn't micro-manage anything but let [Barry] Seal pretty much run the operation. And I was just, of course, subordinate to Seal. And primarily my job, initially -- I'm a 3,000-hour plus flight instructor -- my job was to train Nicaraguan nationals to fly aerial delivery aircraft, the very same type of aircraft that was shot down, that exposed, the whole Iran-Contra affair. That C-123 aircraft was the type of aircraft that, ultimately, my students would be upgraded to down in Nicaragua -- down in Honduras, actually -- once they graduated from the basic program we had set up in Arkansas.

DONAHUE
And was Mena, Arkansas, chosen for its topography and also Governor Clinton, and they felt he would cooperate in paramilitary operations?
REED
The way I answer that, Tom, is I grew up in southwest Missouri. And there was a phenomenal difference between the economy of Missouri and Arkansas [when] I was a child. In fact, I've lived along the border of Mexico and the U.S., and it was almost the same radical difference when you crossed that state line back when I was a younger man. You were in beautiful country, but very impoverished. Something was holding the state back economically. I, as a young man, didn't know what that was. But I later came to understand its archaic banking laws, and a thing called the Arkansas Usury Law that prevented banks in the state from lending out money that exceeded 10 percent interest, and a law that prevented their banks from having linkage to banks outside the state, pretty much kept a ruling elite in power in Little Rock and elsewhere. And kept the majority of the populace impoverished.
DONAHUE
You call it a Banana Republic.
REED
We make a term that, certainly the political environment that existed in Arkansas, even in the '80s, the early '80s, was very comparable to a third world government environment in that you had a very small, ruling elite.
DONAHUE
L.J. Davis says the same...
REED
Yeah.
DONAHUE
...after his investigation.
REED
I think he stole that from our book. But...
DONAHUE
O.K. But he gave a lot of credit and attribution to both of you during his interview with us.
REED
O.K. That's good. I would sure have liked to have had honorable mention in his article, since he did, in fact, use our book as one of his research guides. But I guess that's journalism, if John Cummings agrees with me.
DONAHUE
Well, at least he's giving you credit throughout interviews he's doing...
REED
Great.
DONAHUE
...coast to coast. So I feel very much... Well, we'll talk more about that when we come back.

Our special guests, John Cummings and Terry Reed.

[...commercial break...]

TOM DONAHUE:
We're back. Tom Donahue, "America's Town Forum", patriotism in action.

Terry Reed, John Cummings, the authors of Compromised: Clinton, Bush and the CIA -- How the presidency was co-opted by the CIA.

And gentlemen, I have to admit I wish I had the time to read 550 pages of small, fine print that's in this book, and all the documentation. I didn't. I've scanned it. Some day I will [read it.] I highly recommend it though.

TERRY REED:
Great. If I could just finish with that one thought here, Tom, about why Clinton may have done this: You know, certainly, if he assumed power and became Governor, he had a full agenda of trying to turn that state around. And certainly, if he wanted, if he had this secret ambition all along to become President, he had a lot of work cut out for him. He had to build an industrial base and literally drag Arkansas up into the 20th century. And I think one way he did that is by, through cooperation with the CIA -- which we get into deeply in the book, about the money laundering aspects and actually government, certain industries, getting involved in the manufacturing of weapons components.

So anyway, with that said, I'd like you to talk to John [Cummings]. John's a great journalist and came to me, hounded me for 2 years, to do this book. And I finally gave in. And, but John's responsible for forcing me to sit down and put this thing together with him. So...

DONAHUE
One more question before we bring John into the discussion here: What was going on in Mena, Arkansas? In a nutshell, tell us what transpired and what you observed.
REED
O.K. Let's talk about what was supposed to have happened versus what I think did happen.
DONAHUE
All right.
REED
Certainly as I... I was working there for approximately 15 months, flight training. In the course of doing that, I became aware that Barry Seal was flying weapons down to staging areas in Central America. The weapons components, that were going into making the completed weapon, were being drawn from National Guard armories, in Arkansas, with the exception of some critical parts that do have "tracking" built in -- for, not only for D.O.D. [Department of Defense] purposes, but also for Alcohol, Tobacco and Firearms [i.e., ATF]. Those pieces, that you literally could not pull out of the Army inventory without triggering some kind of an audit, were being built, initially, by a company called Iver Johnson Firearms, which was up north of Little Rock.

So you had weapons procurement, and assembly and manufacture. You had the transportation of those weapons. You had the contra pilot training, that I was involved in. And later I discovered that Seal was flying back in cash, in large quantities, on his way back in from Central America.

That's what I saw, were those elements.

DONAHUE
What about the drug connection? What about drugs for arms? Did that happen?
REED
Well I'm not gonna say it didn't happen. I didn't observe it in Arkansas.

Now later on in the book, when I get down into Mexico and get on the other end of the pipeline -- I was on the receiving end of the pipeline up in Arkansas, and certainly those operations that I just outlined were very compartmentalized, and not a lot of overlap in personnel, with the exception of probably me. Because of my background in manufacturing, I was able to sort of get an overview of 3 facets of the operation. But once I went down to Mexico: Yes. I came head to head with the fact that the people that had sent me down there were trafficking heavily in cocaine. That resulted in me divorcing myself from this entire thing. And I think it's what's been causing me a lot of pain and suffering ever since.

DONAHUE
I understand the small banks in Mena and surrounding communities were swelling with cash deposits.
REED
Yeah. This IRS agent Bill Duncan, who we have in the book and who was on this Pat Robertson show yesterday -- I don't know if you saw...
DONAHUE
No, I missed that.
REED
...Pat Robertson did a 26-minute news segment on this whole story yesterday and Bill Duncan was sort of the centerpiece of that show. Because through his investigation, his investigative efforts, you realize not only did this happen, just as we say in the book, but secondarily, the containment mechanism that's been put in place to keep this thing from going to court and getting people charged for the money laundering aspects that Duncan discovered is what I think is most interesting now. Because that does show Clinton being involved in the short- circuiting of funding for the grand jury. It shows him turning a blind eye to requests coming from prosecutors, you know, requesting state funds. Just by his share of... Well, just by his attitude of...
DONAHUE
He put the kabosh on it [i.e., put a lid on it, stopped it from happening].
REED
Yeah. He certainly did. He became part of the mechanism that hammered the hammer, hammered the...
DONAHUE
I never thought an IRS agent could be a hero, but maybe [laughs], maybe... Maybe one of the Internal Robbery Services best and brightest might have been a hero!
REED
Well he's a C.I.D. agent, which is an undercover type...
DONAHUE
[laughs] I've dealt with 'em, believe me! Most of 'em are morons, but nevertheless, uh...
REED
[laughs]
DONAHUE
...We'll talk about the IRS another day, Internal Robbery Service. We've done enough hammering on them.

We're gonna come back, and bring John Cummings into the mix. The book is Compromised: Clinton, Bush and the CIA. Don't go away. Back in seconds.

[...commercial break...]

If you'd like to join us, the talk line number, our Town Forum line, coast-to-coast, is 1-800-298-TALK. 1-800-298-8255.

John, how'd you get involved with Terry Reed? And, it's a mammoth book. I know you're a prolific writer, an award-winning writer. You worked for Newsday and you've authored or penned several books.

JOHN CUMMINGS:
Well. I came to Terry, following a trail that really started many, many years ago, when I, as a very young reporter, was assigned to cover Cuba and the Cuban exile machinations which climaxed in the Bay of Pigs. And in the course of observing this in Florida, I watched the CIA co-opt local officials and even the Governor at the time, in Florida, to make sure that their operations were not interfered with and that they could operate with impunity.

And so I came to this gradually, knowing, you know, what the telltale signs were.

DONAHUE
Um-hmm [understands].
CUMMINGS
If you say this to people, just like I just did, well they say it sounds implausible. But when you observe it over many years, you begin to see that they use the same methods over and over.

I was following Adler Berriman Seal, Barry Seal, whom Terry mentioned. Now I knew him basically as a drug trafficker. I believed him to be a drug trafficker who was a CIA asset, of which there are many -- they use smugglers for many reasons -- but it turned out that he was really a CIA asset whose cover was being a drug trafficker. And when I got to Arkansas -- and I followed him up to Arkansas -- I began to see telltale signs of an intelligence operation: an airfield out in the middle of the woods, that nobody knew anything about.

And the more I dug, the more convinced I became that, obviously, this was an intelligence operation. It was being protected, certainly, by the federal government. But when you operate in any area, you have to make sure that the state understands, and co- operates with you. And I was really curious about that. And to cut it short, I came across Terry [Reed], who at that time was under indictment in Wichita, Kansas. And I approached him and we began to talk. And I began to see, you know. He showed me the connection between Oliver North, Barry Seal, and the whole operation. At first, he did not talk to me about Bill Clinton; it was much later on. And then I came to realize -- I had seen both [political] parties "in bed with each other" in Florida, and here, once more, was yet another local official, or a Governor, who made a pact with the Devil.

Um, you mentioned before, the "virus" that bit Nixon. I call it a power trip. And once somebody gets on that track...

TOM DONAHUE:
An aphrodisiac. Yeah.

CUMMINGS
...Yeah, yeah... they want power and they do what they have to to achieve it. And he made his Faustian deal with the CIA. Which he probably felt was good for his state.
DONAHUE
George Bush was a former director of the CIA. And George Bush... I guess you never leave the CIA. You always have ties or connections in some way unless you really t'eed them off and you're running for your life.
CUMMINGS
Well, there's an old saying. There's an old saying, "When does a CIA asset cease to be a CIA asset?" And the answer is, "When he's arrested." {4}.

And uh, but Terry, when I met Terry, he was not like the other CIA, uh many of the CIA assets I had met. And it was very clear to me that there was much more to this story. And of course Terry eventually was acquitted of this charge, which was one of the reasons I came to believe him. Because when I first heard his story I greeted it with the same skepticism I would use with anyone. But Terry's story checked out and the things he told me were true. He was in the places he said he was. And I came to see him as a kind of a "Rosetta Stone" {5} for me, as someone who's been searching along this path for many years.

DONAHUE
Hmm, I see. Now how... What are Bush's ties here? Is CIA background and the fact that he was vice-President at this time... How much "hands on" do you think Bush had with the Mena, Arkansas operation?
CUMMINGS
Lawrence Walsh says in his final report that George Bush was knowledgeable and involved...
DONAHUE
In the loop.
CUMMINGS
I'm sorry?
DONAHUE
He was in the loop, right?
CUMMINGS
He was not only in the loop. I think, from what I can see, he was in day-to-day charge of the operation.
DONAHUE
That was my impression: the loop master.
CUMMINGS
Yeah! And certainly (and Terry will get to this in a few moments), at this meeting at this army base outside Little Rock, where Bill Clinton attended, there was a CIA man, sent from Washington, who turns out to be none other than William Barr, who became George Bush's attorney general! And here was the man, sittin' here, tellin' Bill Clinton the way things were gonna be!

Now Terry was a witness to that, and he can tell it much better than I can. But there you have it all, right there.

DONAHUE
Amazing. Amazing.

But you feel both of, vice-President Bush (and later, President Bush), and Bill Clinton, were in on this? They were privy to what the operation was to accomplish?

CUMMINGS
Certainly. As was Ronald Reagan, in my opinion.
DONAHUE
Ronald Reagan, if... I would believe he might have been out of the loop. I suspect he may have been.
CUMMINGS
Well, whether he had daily briefings or not I don't know. He certainly... If he was out of the loop it was because -- It's like I heard on a television show recently, in a drama, he said, the President was sitting there with the CIA director and he said, "There are times when there are certain things a President just doesn't want to know." And he said, "And this is one of them." And this could be one of those situations.
DONAHUE
Well the contra effort, there was an obsession there with Reagan, and he was still wanting to fight communism. And so if he was told this was an operation that would benefit him, I'm sure he would have given total acceptance and approval.
CUMMINGS
Well Reagan was obsessed with this policy and he was determined to see it succeed. I mean, he wore a t-shirt that says, "I am a contra." I mean, the message was pretty clear.
DONAHUE
Why was Barry Seal selected? Why was he put in charge of the operation?
CUMMINGS
Well, I can give you my answer. (I think Terry probably knows much better.) He was a businessman, an expert with airplanes -- there probably wasn't a better pilot around. And he had been recruited way back in the early '70s, early on, by the agency. And he's a man who had worked his way into the confidence of the very top level of the Medellin cartel. I mean, he was an ideal man. Plus he was, from the way I learned of Barry Seal, from what Terry tells me, he was just a natural born leader and a very intelligent man.
DONAHUE
What about the Bush brothers? Bush's sons. Didn't they have connections to the Medellin cartel?
CUMMINGS
Well, Barry Seal alludes to that in our book. We... Terry didn't go into that in great detail. I can tell you that when... Before Seal died, he made some audio tapes of some meetings...
DONAHUE
How did he die?
CUMMINGS
He was assassinated, in Baton Rouge, Louisiana, 1926 [sic] by the, uh the assassins were Columbians...
DONAHUE
You said "'26". Uh, you meant 19-what?
CUMMINGS
Did I say "'26"?
DONAHUE
Yeah.
CUMMINGS
1986.
DONAHUE
1986. O.K.
CUMMINGS
I beg your pardon. And he was assassinated. And I think he was assassinated because he became a major liability for both George Bush and Bill Clinton -- just as Terry became. And one of the reasons that Terry, as he mentioned, did this book, was to get this story out so that he didn't end up in an alley like Barry Seal.
DONAHUE
This book is his "insurance policy".
CUMMINGS
In a way. That's one of the arguments I used with Terry: to tell him that he would be safer with this story out than keeping it to himself.
DONAHUE
Um-hmm [understands].

We're gonna take our break. We'll come back. We're gonna continue our discussion, our interview. Both gentlemen will be with us the rest of this hour and next on many of these fine stations. Listen up. And we'll be right back.

[...commercial break...]

TOM DONAHUE:
We are back. Tom Donahue, "America's Town Forum", patriotism in action.

We're talking with Terry Reed and John Cummings. The book is Compromised, and we're gonna make this book available through our organization. [...Donahue extols the book...]

Um, you have a list that your publisher sent to me: The key figures in Compromised. And many of them are the same figures we're hearing in the Clinton cabinet, and through Whitewater, and beyond "Whitewater rafting".

Let's talk about some of these figures and how they play a role and what the media should be looking for, beyond "Whitewater rafting".

TERRY REED:
Are you speaking to me now, Tom?

DONAHUE
Who do we have now?
REED
This is Terry.
DONAHUE
All right, Terry. Go ahead.
REED
Well I was actually thrust right into play with a lot of the key people that are now surfacing in Whitewater. Uh, Seth Ward, a man that I believe USA Today described as the mystery man in the Whitewater scandal, a man that was deeply involved in the land acquisitions and I think was a director of Madison Financial Corporation.

Uh, Seth. Of course Seth's son-in-law is Webb Hubbell, number 2 man, was number 2 man or 3 man in Justice, that as you know resigned. {6}.

DONAHUE
Yep.
REED
Bob Nash, a key Clinton economic aide, was a man that I directly reported to. Nash is now with the Department of Agriculture; another person that got a nice, fat-cat job.
DONAHUE
And Bob Nash was the former director of the Arkansas Development and Finance Authority [ADFA], where Larry Nichols once worked.
REED
That's correct. Yeah, the same cast of characters keeps reappearing throughout not only the Clinton administration but in this book. Because I was put into play with them in a totally different capacity. I saw this operation from the inside out, and John [Cummings] reports about it from the outside in, which is quite an interesting style. We're being told that it's very effective to describe what was in the news during that time frame and what the headlines of Arkansas read, [and] what was going on behind the scenes, that were generating the cover-up of the Mena scandal and things like that.

But John and I did not start out to write an Iran-Contra book... I mean a Whitewater book. We were... I was working on this through my memoirs, trying to get down on paper what was happening to me as a result of my criminal indictment. And I was keeping good notes, and just sort of to have a good record, 'cause things get pretty distorted in a courtroom environment.

DONAHUE
I want to get into that, in just a couple minutes here. And I jumped ahead, myself. I want to go back to the Bush brothers.
REED
O.K.
DONAHUE
The Bush sons. And also, you talk here about "Bond Daddy" Dan Lasater. He was also involved with drugs. And let's talk about the drug figures that you know, and what you do know, and share that with us.
REED
O.K. Lasater's name... I met, in fact the first day I met Barry Seal, he was in the company of Dan Lasater and Roger Clinton. Roger was the driver for Dan Lasater at the time; was his chauffeur in Little Rock. But Lasater, the moment the money laundering connection started to develop I realized it was Lasater that, where Seal was doing all his "banking", and taking, you know, initially briefcases full of cash for deposit there. And then later on, duffel bags full of cash.

A bond trader, that worked for Lasater, was a man by the name of Finis {7} Shellnut. Now Finis is Seth Ward's, or was Seth Ward's, son-in-law at the time. And Seth Ward owned a piece of property west of Little Rock called the "Triple S Ranch". And that is the ranch in which Seal was jettisoning the large, large... what's called a B-4 bag in the military, a large duffel bag, that can hold about $3 million, complete with radio transmitters so you can locate it. That money was being kicked out of Seal's planes onto the Triple S Ranch. And the man that was retrieving the cash was Finis Shellnut and, who worked for Lasater. And I feel that was the direct conduit from that point into Lasater's company.

DONAHUE
Does anybody know where this money went to? Has anybody been on the money trail?
REED
Oh yeah. I think that's what the federal people are doing right now. You've got creation of ADFA, Arkansas Development Finance Authority, cropped up in the middle of all this. And the source of the funding has always been secret. ADFA's records only show what they loan out.

When they have a bond issue, primarily at the state bank, for practical purposes its mandate was to attract and finance industry for Arkansas. What it became was a vehicle to loan money to friends of Bill Clinton and a way to get quiet "campaign contributions" [a.k.a. "bribes"] back, as L. J. Davis pointed out in his article. I believe it was 25 percent? Or one-fifth, I guess it was, of the 1990 campaign chest for Clinton came back to him in the form of "contributions" from the recipients of ADFA loans. So I think that's a style that you're gonna see developing more and more, surfacing more and more, throughout the investigations {8}, is how Bill was able to stay in power, and keep his campaign chest full, while people that tried to surface, to compete with him, were literally strapped for cash.

DONAHUE
This is quite an incestuous web there in Arkansas, and the same web or cast of characters have moved on to Washington, D.C., to run the country.
REED
Yeah, we've been told, this is a phrase that we were -- now I'm gonna steal from someone else -- but on the surface, it looks like a game of chess. But what you have to do is look vertically -- and it becomes a game of vertical chess -- to see the relationships under the table of the King and the Queen and the pawns, and see how they're co-orbiting with each other. And not only... I mean incest is a sort of a worn-out term these days, but that certainly does fit the style of politics and banking that exists in Arkansas. It's just hand in hand; it's like wearing a glove.

TOM DONAHUE:
Back to George Bush and his sons: What do you know there? What, what's... Because this book does focus on Bush and Clinton, let's talk about their knowledge, or their involvement or complicity, in the drug trade.

TERRY REED:
Well first of all, I'll whet your audience's appetite and use this as an opportunity to tell you there is another book in the works. This book [Compromised] became gargantuan, as you mentioned several times, and we had to finally, you know, lop it off at some point to get the thing to press.

But to answer that question, one has to study Barry Seal, and know something about intelligence, as it works anyway. And it's not like on TV. And it's not like the James Bond movies. You go to intelligence school to learn how to compromise people, how to blackmail them, how to get dirt on them. It's a very ugly business when you get into the mechanics of how it actually functions.

Seal was a master at that. A photographic memory, literally. I never saw him write a clearance, an aircraft clearance radio frequency, down. A new frequency was stored in his memory as if it was a computer database. And as I worked with him and he basically became my intelligence mentor, to teach me the civilian side, how it functioned, and I was teaching him a few things about manufacturing and, so we were cross-sharing information. But I grew to really admire Seal's ability to stay one step ahead of people that were either trying to control him, neutralize him, or whatever. I think that style, though, is what lead to his death.

He did share with me, on a trip coming back from Panama, he was confiding in me. (This was about 3 months before he was killed.) He was confiding in me that he had the ultimate "neutralizing weapon" -- as he always called blackmail material -- "neutralizing material". He had gained information, originally from the DEA, and then information that he had actually confirmed firsthand, that the Bush kids were "dirty", as he put it. They'd been caught, actually, ensnared, in a trap. And of course the agents involved, once they realized who they had caught, let everybody go.

DONAHUE
We have Jeb Bush running for Governor in the great state of Florida. We have George W. Bush here in Texas. Are either of those two involved in anything like this, or perhaps in the past?
REED
Yes. Through corporate linkage, which we're gonna define in detail in the next book. But one must go back and think about the fact that Zapata Petroleum had strong linkage to Mexico. I'm not saying this as a teaser, but that's where our book is gonna begin is, where Zapata came from. (Of course, that's what George Bush ran down in Texas [i.e. Zapata Petroleum].) And who was the connection in Mexico with Pemex that allowed Zapata to get its drilling rights. And Seal, during that period of time was, in fact, hauling drugs for the CIA and DEA, out of Mexico. And that put him in a position to learn some of the players.
DONAHUE
Let's further expound on the Bush connection, here. Mr. Bush, former President, and his sons, and the "Bush crime family", if you will. And then we'll come back, right after this break.

[...commercial break...]

Tom Donahue, "America's Town Forum". We're speaking with Terry Reed and author John Cummings, the authors of Compromised: Clinton, Bush and the CIA. How the Presidency was co-opted by the CIA. And a picture of "Billy Boy" and "Skull & Bones" are on the front.

REED
[chuckles]
DONAHUE
The book is available, we're gonna make it available through our organization {9}. [...extols book and gives info on how to order...]

Back to the Bush brothers and "King George" himself; let's talk specifically -- their involvement.

REED
Well, I'm reading right now... Have you seen a copy of the New Federalist newspaper?
DONAHUE
No, I haven't.
REED
The current issue is dated April 18th. You ought to try to get a copy of that. It's a well put-together article.
DONAHUE
O.K.
REED
It can be received through P.O. Box 889, Leesburg, Virginia 22075. {10}.
DONAHUE
That's the official research arm of Lyndon LaRouche {11} ...
REED
That's correct.
DONAHUE
...and his group.
REED
Now what they did, they took our book and quite interestingly enough {12}, turned the whole scandal over and literally lit a blowtorch on George Bush and family. And just to give you an idea about this meeting I was talking about: I'd flown down to Panama, to a meeting, and we were at a very critical juncture of launching the Mexican operation. We were actually discussing pulling the operation out of Arkansas and moving it down to Guadalajara. And Seal and I had flown down together to attend this meeting...
DONAHUE
Because of the political connections in Arkansas, and the banks, and everything that was needed financially, the topography and the way it was set up, it was a good training base, wasn't it?
REED
Oh very!
DONAHUE
Similar to Central America.
REED
Yeah, it was. My students commented on the mountainous region being very similar in topography, and climate. In the Spring, the fog, the way it hangs in the valleys. And we would practice penetrating the fog layer and using that for camouflage to fly low-level for our aerial delivery sorties. It was a very interesting place. Uh, they have mosquitoes down there the size of small birds, you know.
DONAHUE
[chuckles] You were thinking about moving the operation.
REED
It was moved, later. I was gonna read something to you, if you don't mind. Because what they [New Federalist] did was they took a lot of dialogue out of the book -- sort of condensed it.
DONAHUE
O.K.
REED
It explains a lot.

But this is Seal talking to me. This is a quote:

"Terry, I've been working with several federal agencies," Seal began. "In the course of that business, a person can't help but run across some very sensitive information. It seems some major players in the Medellin cartel, whom I personally know, ran across some knowledge that's very valuable to both Republicans and the Democratic party. It seems some of the, George Bush's kids, just can't say 'no' to drugs. A guy in Florida, who 'flipped' for the DEA, has got the goods on the Bush boys. Now I heard this earlier from a very reliable source in Columbia. But I just sat on it then, waiting to use it as my 'trump card'. I got names, dates, places, even got some tape recordings. I even got surveillance videos catching the Bush boys red-handed. I consider this stuff my 'insurance policy'. It makes me, and my 'mole' on the inside that's feedin' the stuff to me, invincible."

And that's the end of the quote. Now...

DONAHUE
We've got the cocaine Bush boys, and we have "King Daddy" overseeing the heroin trade out of Burma and turning a blind eye to it.

We'll be back. Tom Donahue, with "America's Town Forum".

[End of hour 1]

--------------------------<< Notes >>---------------------------- {1} Regarding Nixon: It's hard to understand why Clinton ordered flags flown at half mast for 30 days in honor of Nixon. To my knowledge, this was unprecedented. I don't think even JFK got the flag flown at half mast for 30 days. Talk about collective insanity: 30 days for fu**ing Nixon!!

{2} "...Clinton as a coward and someone that shirked his duty..." There were many who sought to avoid and/or avoided military service during the Vietnam era. They keep repeating this "Clinton the coward" stuff, and it's ridiculous.

But why? Why are they drumming this into our heads, this "Clinton the coward that shirked his duty" baloney? Hypothesis: Are they conditioning us to swallow some future law that we not "shirk our duty"? Are they conditioning us to accept a re- instatement of the draft? Are they conditioning us to "not be 'cowards' like Clinton"? Are they conditioning us to be cannon fodder for another one of their wars?

Just conjecture. But then again, you tell me: Why all this "Clinton the coward who shirked his duty" repeated again and again?

{3} "But so many don't know his [Oliver North's] role in this..." But after all, every damn fart in the O.J. Simpson trial is just so much more important, so much more newsworthy, that of course "many don't know North's role in this". After all, really important news must take precedence.

{4} "When does a CIA asset cease to be a CIA asset? When he's arrested." From the old TV series, Mission: Impossible, "As always, if you are caught or captured, the secretary will disavow any knowledge of your actions."

{5} "Rosetta Stone" -- A key that unlocks a mystery. The original "Rosetta Stone" was discovered in Egypt by Napoleon's army. For ages, a way to decipher Egyptian hieroglyphs had been sought, without success. The Rosetta stone had chiselled into it a message written both in ancient Greek and in the Egyptian hieroglyphs. This was the key that unlocked the hieroglyphs.

{6} Webb Hubbell was, as I recall, deputy attorney general. He may have been, in effect, Clinton's eyes and ears at the Justice Department -- moreso than Janet Reno anyway, who is not part of Clinton's bunch of Arkansas buddies that he brought with him to Washington.

{7} Finus: pronounced FI-nus, with a long "I" sound as in "high". For example, His Highness, Finus.

{8} "...throughout the investigations..." Was that what that was? That thing that flashed by this summer, that whitewash? Was that the "investigations"?

What's Starr up to these days, or won't the media be covering that until after the November elections?

BTW -- Get set for Clinton to invade Haiti right around election time. What a coincidence, huh?

{9} "The book is available..." No need to use Tom Donahue to get the book. It is available or can be ordered through your local bookseller. However, Donahue does offer audio tapes of past programs. Information I have, current as of July 21, 1994, reads (in part) as follows:

Your tape order has been processed by volunteers...We are sorry about the delay in getting your order filled. [CN -- True, there was delay. Donahue's preoccupation with his trial may have been why.] ...Tapes of past and current shows (with fill-in host Bo Gritz) are still available at $7.00 for both hours [CN -- Full price, including postage]... Allow 2-3 weeks for delivery although we hope to do it faster. For a list of shows available send a self addressed stamped envelope to

America's Town Forum
P.O. Box 835
Atlantic Beach, Florida 32233

Most of each $7.00 tape goes for Tom's defense fund.

{10} The New Federalist is published weekly. Subscriptions are available at $20 for 50 issues, $35 for 100 issues. Make checks payable to "New Federalist" at New Federalist, PO Box 889, Leesburg, VA 22075. Note: It has good info, but I suggest reading it with "a grain of salt".

{11} In the past I have criticized LaRouche et al. This is not to say that they don't write some good articles. They do put out some excellent information, in my opinion. But be wary of turning your mind over to LaRouche, as some have done. For that matter, I would say to be wary, also, of turning your mind over to just about any "authority": Conspiracy Nation, television, Noam Chomsky, "experts", or you name it. The trick, it seems to me, is to think for yourself.

{12} "...they [New Federalist] took our book and quite interestingly enough..." Yes, I recall reading the New Federalist account of the Reed/Cummings book. By reading their account, you might miss the fact that this took place in Arkansas and that, according to the book, Bill Clinton has much to answer for. If one were to read only the New Federalist account of the book, one might go away with the impression that the book only features George Bush on the cover and not Bill Clinton as well. The New Federalist coverage, amazingly, neglects the Clinton/Arkansas angle. WHY?? Why is LaRouche running interference for Clinton?

Brian Francis Redman bigxc@prairienet.org "The Big C"

"Justice" = "Just us" = "History is written by the assassins."