[News] When the Terrorists Were 'Our Guys'

[Anti-Imperialist News]

http://consortiumnews.com/Print/2008/022108a.html
When the Terrorists Were 'Our Guys'

By Robert Parry
February 22, 2008

In 1976, when George H.W. Bush was CIA director, 
the U.S. government tolerated right-wing 
terrorist cells inside the United States and 
mostly looked the other way when these killers 
topped even Palestinian terrorists in spilling 
blood, including a lethal car bombing in 
Washington, D.C., according to newly obtained internal government documents.

That car bombing on Sept. 21, 1976, on 
Washington’s Embassy Row, killed Chile’s former 
Foreign Minister Orlando Letelier and an American 
co-worker Ronni Moffitt, while wounding Moffitt’s husband.

It soon became clear to the FBI and other federal 
investigators that the attack likely was a joint 
operation of DINA, the fearsome Chilean 
intelligence agency of military dictator Augusto 
Pinochet, and U.S.-based right-wing Cuban exiles.

But Bush’s CIA steered attention away from the 
real assassins toward leftists who supposedly 
killed Letelier to create a martyr for their 
cause. Eventually, the CIA’s cover story 
collapsed and – during the Carter administration 
– at least some of the lower-level conspirators 
were prosecuted, though the full story was never told.

Recently obtained 
<http://www.consortiumnews.com/fbi-doc.pdf>internal 
FBI records and notes of a U.S. prosecutor 
involved in counter-terrorism cases make clear 
that the connections among Bush’s CIA, DINA and 
the Cuban Nationalist Movement (CNM) – which 
supplied the trigger men for the Letelier bombing 
– were closer than was understood at the time.

DINA provided intelligence training for CNM 
terrorists who acted like a “sleeper cell” inside 
the United States; federal prosecutions of 
right-wing Cuban terrorists were routinely 
frustrated; and the CIA did all it could to cover 
for its anticommunist allies who were part of a 
broader international terror campaign called Operation Condor.

Beginning in late 1975, Operation Condor -- named 
after Chile's national bird -- was a joint 
operation of right-wing South American military 
dictatorships, working closely with U.S.-based 
Cuban and other anticommunist extremists on 
cross-border assassinations of political dissidents as far away as Europe.

This meant that during George H.W. Bush’s year at 
the CIA’s helm, the United States both harbored 
domestic terrorist cells and served as a base for 
international terrorism. Yet no U.S. official was 
ever held accountable -- and in many cases, just the opposite.

George H.W. Bush rose to be Vice President four 
years later and to be President eight years after 
that, with his son now sitting in the Oval 
Office. Former President Bill Clinton has said 
<http://www.consortiumnews.com/2007/123107.html>his 
wife's first act as President would be to 
dispatch him and George H.W. Bush on a worldwide fence-mending tour.

The Letelier Plot

Regarding the DINA-CNM alliance, Chile’s star 
assassin Michael Townley told FBI interrogators 
after his arrest in 1978 that Cuban exiles 
involved in the Letelier murder had received DINA 
training, including CNM member Virgilio Paz, who 
“attended a one-month ‘quickie’ intelligence 
course sponsored by DINA,” 
<http://www.consortiumnews.com/fbi-doc.pdf>the internal FBI report said.

Townley, a fiercely anticommunist American 
expatriate who had emerged as DINA’s chief 
overseas assassin, told the FBI that Paz’s 
training was personally approved by DINA’s 
director, Col. Manuel Contreras, who – the CIA 
later acknowledged – was an asset of the U.S. spy agency.

Paz lived at Townley’s residence during his 
three-month stay in Chile and DINA paid for Paz’s 
frequent calls back home to the United States, 
Townley said, recalling that Paz left Chile close 
to his son Brian’s birthday on June 6, 1976.

About a month later, Colonel Pedro Espinoza, 
DINA’s director of operations, summoned Townley 
to a meeting near St. Georges School in suburban 
Santiago. Townley recalled driving his 
DINA-supplied Fiat 125 sedan to the early-morning 
meeting and taking a thermos of coffee.

Espinoza asked Townley if he’d be available for a 
special operation outside Chile. Townley 
complained “that he had spent a majority of 1975 
in Europe on DINA missions and that he felt he 
was neglecting his family with constant travel on 
behalf of DINA,” according to the FBI report.

(Only later would investigators learn that 
Townley had been working with European 
neo-fascists in hunting down Chilean dissidents 
in Europe, including Christian Democratic leader 
Bernard Leighton, who was severely wounded along 
with his wife in an assassination attempt in Rome on Oct. 6, 1975.)

In late July 1976, Townley said he drove a stubby 
metallic green MG 1300 to a second meeting and 
spoke with Colonel Espinoza outside the car. 
Espinoza informed Townley that his mission would 
be the assassination of Orlando Letelier, who had 
emerged as an articulate critic of Pinochet’s 
dictatorship and was putting an unwanted 
spotlight on Chile’s central role in the 
spreading human rights calamity across South America.

Espinoza said Paraguayan travel documents would 
be used for the operation and the preferred 
method of death was an arranged traffic accident while Letelier was alone.

“Colonel Espinosa [sic] instructed him [Townley] 
that Cuban exile terrorists were to be utilized 
to carry out the actual assassination, and that 
his and [his DINA accomplice’s] role would be to 
plan the assassination and then withdraw leaving 
its execution to the Cubans,” the FBI report said.

“Based on his [Townley’s] recent favorable 
association with Paz and the latter’s recent 
training under DINA sponsorship, he [Townley] 
told Colonel Espinosa [sic] that he believed the 
assassination in the United States might be arranged,” the FBI document said.

The CORU Umbrella

By June 1976, CNM also had joined in another 
campaign of right-wing terrorism, this one 
organized by Cuban exile Orlando Bosch under an 
umbrella group called the Coordination of United 
Revolutionary Organizations (CORU), which targeted Fidel Castro’s Cuba.

According to the federal prosecutor’s notes, the 
CORU organizational meeting in the Dominican 
Republic in June 1976 brought together CNM and 
four other exile groups, including the “Force 
Fourteen (F-14, led by a CIA asset),” meaning the 
U.S. spy agency surely knew about CORU’s plans from the start.

In early July 1976, after getting the assignment 
to murder Letelier, Townley said he contacted Paz 
and other CNM members to assist him.

First, however, Townley and his DINA accomplice, 
Chilean Army Lieutenant Armando Fernandez Larios, 
went to Paraguay to arrange visas for a trip to 
the United States, using the false names, Juan Williams and Alejandro Romeral.

Their cover story was that they were 
investigating suspected leftists working for 
Chile’s state copper company in New York and that 
– while in the United States – they would meet 
with Bush’s CIA deputy, Lt. Gen. Vernon Walters.

A senior Paraguayan official, Conrado Pappalardo, 
urged U.S. Ambassador George Landau to cooperate, 
citing a direct appeal from Pinochet. An alarmed 
Landau recognized the visa request as highly 
unusual, since such operations were normally 
coordinated with the CIA station in the host 
country and were cleared with CIA headquarters in Langley, Virginia.

Though granting the visas, Landau took the 
precaution of sending an urgent cable to Walters 
and photostatic copies of the fake passports to 
the CIA. Landau said he received an urgent cable 
back signed by CIA Director Bush, reporting that 
Walters, who was in the process of retiring, was out of town.

When Walters returned a few days later, he cabled 
Landau that he had “nothing to do with this” 
mission. Landau immediately canceled the visas, 
but the U.S. government apparently never 
delivered a specific warning to DINA to call off the operation.

To this day, it remains unclear what – if 
anything – Bush’s CIA did after learning about the “Paraguayan caper.”

Nevertheless, Townley said he and DINA’s Col. 
Espinoza worried about delays in getting the 
original visas, which suggested that the 
Paraguayan approach was compromised, Townley said in his FBI interrogation.

To allay any U.S. suspicions, DINA did dispatch 
two other Chilean operatives using the phony 
names Juan Williams and Alejandro Romeral. After 
they arrived in the United States on Aug. 22, 
1976, they made a point of having the Chilean 
Embassy notify Walters’s office, but the CIA 
again demonstrated little curiosity about the mission.

‘Beyond Belief’

“It is quite beyond belief that the CIA is so lax 
in its counterespionage functions that it would 
simply have ignored a clandestine operation by a 
foreign intelligence service in Washington, D.C., 
or elsewhere in the United States,” wrote John 
Dinges and Saul Landau in their 1980 book, Assassination on Embassy Row.

“It is equally implausible that Bush, Walters, 
Landau and other officials were unaware of the 
chain of international assassinations that had been attributed to DINA.”

As for the Letelier assassination, DINA was soon 
plotting another way to carry out the killing. In 
late August 1976, DINA dispatched a preliminary 
team, consisting of Larios Fernandez and a female 
agent, to do surveillance on Letelier as he moved around Washington.

Then, on Sept. 8, 1976, Townley followed, using 
an official Chilean passport under the fictitious name of Hans Petersen Silva.

After arriving at New York’s Kennedy 
International Airport, Townley said he contacted 
Virgilio Paz by telephone and then rented a car 
to drive to Union City, New Jersey, to meet Paz 
at a restaurant named “Bottom of the Barrel,” according to the FBI report.

The next night, Paz brought members of the Cuban 
Nationalist Movement to Townley’s motel room, 
including Guillermo Novo Sampol and Jose Dionisio 
Suarez Esquivel, Townley said.

“Cuban exiles present at the meeting agreed that 
the CNM would assist DINA in assassinating 
Letelier,” the FBI report said. “Shortly 
thereafter he [Townley] traveled to Washington, 
D.C. in the automobile of Virgilio Paz in order 
to conduct additional surveillance on Letelier 
and to purchase additional materials necessary to 
make the bomb which would be utilized to kill Letelier.

“Basically, the bomb was made up of TNT and a 
substance which he [Townley] believed to be C-3 
plastic. Several months previously he modified a 
CB Fanon Courier 
 receiver in Chile at the 
request of the CNM to be utilized at a future date. 


“The crystal on the receiver was set at 31.040 
megahurts [sic]. A major modification made by 
Townley was to remove the speaker from the 
receiver and put in a transformer. A standard 
blasting cap was used in the construction of the 
bomb. The bomb was contained in an aluminum baking tin.”

Townley’s remark about DINA’s preparation of the 
explosive device for the U.S.-based Cuban 
extremists further indicates that the DINA-CNM 
relationship represented an active penetration of 
the United States by an international terrorist 
cabal operating under the nose of U.S. intelligence.

Final Plans

After arriving in Washington and checking into a 
downtown Holiday Inn, Townley and Paz spent 
several days conducting surveillance of Letelier. 
After another CNM operative Suarez Equivel 
arrived, the assassination team took the next 
step, heading to Letelier’s house in suburban Maryland.

Late that Saturday night, Sept. 18, or early 
Sunday morning, Sept. 19, Paz drove Townley to 
Letelier’s neighborhood. Townley “was dropped off 
at the top of a hill in a cul-de-sac street, 
immediately adjacent to the Letelier home. [After 
crawling under Letelier’s Chevelle] he affixed 
the bomb to the cross-member and recalled he had 
some trepidation as to whether the bomb would 
remain attached since he ran out of tape," the FBI report said.

“The bomb contained a safety switch which he 
placed in the ‘on’ position after covering the 
switch with tape. 
 While he was placing the bomb 
he recalled that a police cruiser passed by 
 
however, he was undetected. After placing the 
bomb he walked down the hill and joined Virgilio 
Paz in the latter’s automobile and they left the 
area and returned to their hotel.”

On Sunday morning, Townley flew from Washington 
National Airport to Newark where he met CNM 
leader Novo Sampol for breakfast. Then they drove 
to New York City where Novo had a meeting with an 
“attorney apparently connected with the local New 
York City government,” the FBI report said.

After a family visit in Westchester County, 
Townley flew to Miami where he saw his parents at 
their Boca Raton home before meeting with Miami 
CNM member Felipe Rivero Diaz, who pressed 
Townley for more assistance from DINA, the FBI report said.

By Monday evening, Townley had become “troubled 
that no news had been received concerning 
Letelier and he suspected that something had gone 
wrong with the plan to assassinate him.”

Early Tuesday morning, Sept. 21, Townley called 
Virgilio Paz to find out what had happened. “Paz 
was extremely angry at the early hour of the call 
and the use of the telephone from a security 
standpoint. Paz furnished no information 
concerning the Letelier bomb,” the report said.

“Later on during the morning he [Townley] 
contacted Ignacio Novo Sampol in Miami and they 
arranged to have lunch at a Miami restaurant. 
During the telephone conversation, Novo informed 
him that something had happened in Washington, 
D.C. Subsequent news broadcast the death of 
Letelier as a result of a bomb which detonated in the latter’s automobile.”

Next, Townley said he “eliminated the identity of 
Hans Petersen Silva and returned to Chile 
utilizing a United States passport under the name of Kenneth Enyart.”

Slowly into Focus

Back in Washington, the facts of the 
assassination slowly came into focus. The 
explosion that ripped apart Letelier’s Chevelle 
had shattered a quiet morning in the stately 
section of the capital where embassies line 
Massachusetts Avenue, what is called Embassy Row.

The blast ripped off Letelier’s legs and 
punctured a hole in Ronni Moffitt’s jugular vein. 
She drowned in her own blood at the scene; 
Letelier died after being taken to George 
Washington University Hospital. Ronni’s husband, Michael Moffitt, survived.

At the time, the attack represented the worst act 
of international terrorism on U.S. soil and 
remains the most notorious terror attack 
sponsored by a foreign government inside the United States.

Adding to the potential for scandal, the 
terrorism had been carried out by a regime that 
was an ostensible ally of the United States, one 
that had gained power in 1973 with the help of 
the Nixon administration and the CIA.

The scandal also jeopardized the reputation of 
CIA Director George H.W. Bush and the political 
future of his boss, President Gerald Ford, who 
was in the midst of a heated presidential 
campaign against Democrat Jimmy Carter.

Within hours of the bombing, Letelier’s 
associates accused the Pinochet regime, citing 
its hatred of Letelier and its record for 
brutality. The Chilean government, however, heatedly denied any responsibility.

That night, at a dinner at the Jordanian Embassy, 
Sen. James Abourezk, a South Dakota Democrat, 
spotted Bush and approached the CIA director. 
Abourezk said he was a friend of Letelier’s and 
beseeched Bush to use the CIA “to find the bastards who killed him.”

Abourezk said Bush responded: “I’ll see what I 
can do. We are not without assets in Chile.” [See 
Robert Parry's <http://www.neckdeepbook.com/>Secrecy & Privilege.]

A problem, however, was that one of the CIA’s 
best-placed assets – DINA chief Manuel Contreras 
– would turn out to be a mastermind of the assassination.

Wiley Gilstrap, the CIA’s Santiago station chief, 
did approach Contreras with questions about the 
Letelier bombing and wired back to Langley 
Contreras’s assurance that the Chilean government wasn’t involved.

Following the strategy of public misdirection 
that DINA already had used in hundreds of 
“disappearances” of dissidents, Contreras pointed 
the finger at the Chilean Left. Contreras 
suggested that leftists had killed Letelier to turn him into a martyr.

Evidence of Lying

The Ford administration had plenty of reasons to disbelieve Contreras.

“The CIA had substantive evidence to show that 
Contreras was lying,” researcher Peter Kornbluh 
wrote in his 2004 book, The Pinochet File. “The 
Agency had concrete knowledge that DINA had 
murdered other political opponents abroad, using 
the same modus operandi as the Letelier case. The 
Agency had substantive intelligence on Condor, 
and Chile’s involvement in planning murders of political opponents in Europe.”

Rather than fulfilling his promise to Abourezk to 
“see what I can do,” Bush ignored leads that 
would have taken him into a confrontation with Pinochet.
As the Ford administration dawdled and Bush’s CIA 
kept its head down, right-wing Cuban terrorists 
stepped up their war against leftists in general 
and Fidel Castro’s communist government in particular.

On Oct. 6, 1976, a Cubana airliner, flying the 
Cuban Olympic fencing team and other passengers 
to Cuba, exploded after taking off in Barbados, 
killing everyone onboard. At the time, this sort 
of mid-air bombing was unprecedented, and the 
evidence quickly pointed to Cuban extremists linked to CORU and the CIA.

But the U.S. government either resisted putting 
the pieces together or chose to avoid the obvious conclusions.

On Oct. 6, the day of the Cubana Airline bombing, 
a CIA informant in Chile went to the CIA station 
in Santiago and relayed an account of Pinochet 
denouncing Letelier, with the dictator calling 
Letelier’s criticism of the government “unacceptable.”

The source “believes that the Chilean Government 
is directly involved in Letelier’s death and 
feels that investigation into the incident will 
so indicate,” the CIA field report said.

But Bush’s CIA chose to accept Contreras’s 
denials and even began leaking information that 
pointed away from the real killers.

Newsweek reported in the magazine’s Oct. 11, 
1976, issue that “the Chilean secret police were 
not involved. 
. The [Central Intelligence] 
agency reached its decision because the bomb was 
too crude to be the work of experts and because 
the murder, coming while Chile’s rulers were 
wooing U.S. support, could only damage the Santiago regime.”

Similar stories ran in other newspapers. On Nov. 
1, 1976, the day before the presidential 
election, the Washington Post became another 
vehicle for trumpeting Pinochet’s innocence.

“Operatives of the present Chilean military Junta 
did not take part in Letelier’s killing,” the 
Post wrote, citing CIA officials. “CIA Director 
Bush expressed this view in a conversation late 
last week with Secretary of State [Henry] Kissinger.”

Despite Bush’s success in keeping the truth about 
the Letelier assassination under wraps, Democrat 
Jimmy Carter narrowly defeated Ford on Nov. 2, 1976.

Cracking the Case

Over the next two years, federal investigators 
would crack the case, successfully bringing 
charges against Townley and several 
Cuban-American conspirators. But prosecutor 
Eugene Propper told me that the CIA didn’t 
volunteer the crucial information about the 
Paraguayan gambit or hand over the photo of the chief assassin, Townley.

“Nothing the agency gave us helped us break this case,” Propper said.

According to the recently obtained prosecutor’s 
notes, one of the breaks in the Letelier case 
came from Rolando Otero, a Cuban exile who was 
believed to be the youngest member of the 
CIA-trained Bay of Pigs invasion force in 1961 
and who was implicated in a string of 1975-76 
bombings in Miami (though ultimately acquitted).

Otero had worked with Chile’s DINA, but – 
according to John Dinges’s 2005 book, The Condor 
Years – was a double agent for Venezuela’s 
intelligence service, DISIP, causing his Chilean 
controllers to jail and torture him before expelling him to the United States.

According to the prosecutor’s notes, “Otero 
became the witness who gave a Washington, D.C. 
AUSA [assistant U.S. attorney] the key to the 
car-bombing of Orlando Letelier. 
 The AUSA cut a 
deal with Otero that if Otero talked about the 
Letelier case, he would not have to give any 
information about [terrorism] cases 
 in Miami.”

The prosecutor’s notes also complained of a wider 
lack of cooperation from Washington in the many 
cases of Cuban-exile terrorism in Miami.

Regarding the information generated by the 
Letelier prosecution, the Miami prosecutor asked, 
“why wasn’t that information ever communicated to 
Miami, the Cuban exile stronghold, where the most 
devious and clandestine plots were discussed on a 
regular basis? The links to Miami were so thick, 
the exchange of communication so thin.”

As for the CIA's initial Letelier cover-up, 
neither Bush nor Walters was ever pressed to provide a full explanation.

When I submitted questions to Bush in 1988 – 
while he was running for president and I was a 
Newsweek correspondent preparing a story on his 
year as CIA director – Bush’s chief of staff 
Craig Fuller responded, saying “the Vice 
President generally does not comment on issues 
related to the time he was at the Central 
Intelligence Agency and he will have no comment 
on the specific issues raised in your letter.”

Newsweek editors subsequently killed my critical 
story about Bush’s CIA tenure, even though he was 
citing that experience as an important element of 
his résumé for the presidency. Walters also 
rebuffed interview requests on the Letelier topic 
prior to his death on Feb. 10, 2002, in West Palm Beach, Florida.

New Cover-up

In 1995, after the Pinochet dictatorship had 
ended, DINA chief Contreras and his assistant 
Espinoza were convicted in Chile for the Letelier 
assassination and sentenced to seven and six 
years, respectively. Contreras began implicating 
Pinochet in the Letelier case and other acts of 
terrorism, saying Pinochet knew and approved all of these actions.

As for Pinochet, former President Bush didn’t 
hold a grudge against this foreign leader who 
allegedly had sponsored a terrorist attack under 
the nose of the U.S. government at a time when 
Bush was chief of U.S. intelligence.

In 1998, when Pinochet was detained in Great 
Britain on an extradition request from Spanish 
Judge Baltasar Garzon, who was pursuing Pinochet 
for killing Spanish citizens, George H.W. Bush 
was one of the world leaders who rallied to Pinochet’s defense.

Bush called the case against Pinochet “a travesty 
of justice” and demanded that Pinochet be sent 
home to Chile “as soon as possible,” which the British courts did.

However, Garzon’s initiative prompted the Clinton 
administration to take a second look at the 
Letelier case in 2000. An FBI team reviewed new 
evidence that had become available and recommended the indictment of Pinochet.

But the final decision was left to the incoming 
administration of George W. Bush. In effect, the 
baton of the Letelier-Moffitt-murder cover-up was 
passed to a new Bush generation. Besides failing 
to act on the FBI’s recommendation, the Bush II 
administration continued to withhold relevant 
documents from Chilean investigators.

The younger George Bush – and his brother Florida 
Gov. Jeb Bush – also helped out in protecting the 
old Cuban terrorists who were implicated in the 
Cubana Airline bombing, Orlando Bosch and Luis 
Posada Carriles. Both have been allowed to live 
out their golden years in the relative safety and comfort of the United States.

As for Pinochet, the aging general never had to 
face justice for his acts of international 
terrorism or for his domestic human rights 
crimes. Pinochet died of a heart attack on Dec. 10, 2006, at the age of 91.

‘Blood Boil’

When I tracked down former Assistant U.S. 
Attorney Jerry Sanford, who was assigned to the 
Cuban terrorism cases in the mid-1970s, he still 
sounded frustrated at the lack of support he got 
from Washington to pursue these killers who 
inflicted death both inside and outside the United States.

“My blood starts to boil when I think of how much 
we could have done but how badly we were kept in 
the dark,” said Sanford, now 66, living in 
northern Florida. “I asked for stuff and never got it.”

Sanford recalled that when CIA Director Bush 
visited Miami at the end of the bloody year 1976, 
FBI agents “asked him for information from the 
CIA on where explosives [for the Cuban exiles] 
were stashed.” The response from Bush, according 
to Sanford, was “forget about it.”

Referring to the umbrella organization CORU, 
Sanford said, “it was the only terrorist group 
that ever exported terrorism from the United States.”

Ironically, the CIA’s analytical division reached 
a similar, troubling conclusion in an annual 
report entitled “International Terrorism in 1976” 
that was published in July 1977, after CIA Director Bush had left office.

“Cuban exile groups operating under the aegis of 
a new alliance called the Coordination of United 
Revolutionary Organizations [CORU] were 
particularly active during the second half of the 
year,” the CIA reported. “They were responsible 
for no less than 17 acts of international 
terrorism (at least three of which took place in the US).

“Statistically, this matches the record compiled 
by the various Palestinian terrorist groups 
during the same period. But largely because the 
Cuban exile operations included the October 
bombing of a Cubana Airlines passenger aircraft, 
their consequences were far more bloody.”

In other words, Cuban exiles based in the United 
States – during George H.W. Bush’s year in charge 
of the CIA – outpaced Palestinian terrorists in terms of a total body count.

After the 9/11 terror attacks in 2001, the U.S. 
government presented itself as the innocent 
victim of international terrorism with a moral 
right not only to pursue the “bad guys” across 
the globe but to subject some captives to 
torture, to lock others up indefinitely without 
trial, and to launch attacks that have killed many thousands of innocents.

In the years that have followed, there were few 
recollections of the days under the current 
president’s father when the bloodiest terrorists were “our guys.”

Robert Parry broke many of the Iran-Contra 
stories in the 1980s for the Associated Press and 
Newsweek. His latest book, Neck Deep: The 
Disastrous Presidency of George W. Bush, was 
written with two of his sons, Sam and Nat, and 
can be ordered at 
<http://www.neckdeepbook.com/>neckdeepbook.com. 
His two previous books, Secrecy & Privilege: The 
Rise of the Bush Dynasty from Watergate to Iraq 
and Lost History: Contras, Cocaine, the Press & 
'Project Truth' are also available there. Or go 
to 
<http://www.amazon.com/Neck-Deep-Disastrous-Presidency-George/dp/1893517020/ref=ed_oe_h/105-6934069-6141258?ie=UTF8&qid=1189519378&sr=8-1>Amazon.com. 





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