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Central Investigation Agency

Secret Operations, Drug Money By: Farzana Shah

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BrassTacks is a private Security Think Tank and Research organization providing objective analysis and comprehensive solutions to the pressing issues facing the Pakistani people. Copyright 2009 BrassTacks Permission is given to duplicate, and distribute this document for non-commercial purposes. Permission to host on third party websites is granted, on the condition that a link back to BrassTacks website is http://www.brasstacks.pk is provided. This document is protected by Pakistani and I nternational copyright law. Published 2009 by BrassTacks

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Table of Contents
Central Investigation Agency ..........................................................................................................1 1. CIAs secret Operations................................................................................................................4 2. Drug Production & Consumption..................................................................................................5 3. Contra Movements (1980) ...........................................................................................................6 Was CIA a part of this?.................................................................................................................6 4. Afghanistan ................................................................................................................................7 Russian Afghan War (1979-1989) .................................................................................................7 Pre and Post Taliban Era (1994-2001) ...........................................................................................8 Recent Afghan Conflict (2002 To date) .......................................................................................9 5. Pakistan: Indirect Victim of the CIAs Drug business .................................................................10 6. Conclusion ............................................................................................................................11

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In Afghanistan, U.S./NATO have put the blame on Taliban for poppy cultivation to finance their resistance to allied forces. Ironically, it was only in Taliban era when the world had seen a sharp decline in opium crop in Afghanistan. The Afghan Taliban had banned opium cultivation nationwide, probably for the first time in Afghan history. A more important question is how and when this business of drug production and trafficking started in region? CIA has been using drug money since long to generate money to support its operations all over the world. It did not start in Afghanistan it was brought here after experimenting somewhere else. This is something which is not a lead story in international media for obvious reasons despite the fact it is harming millions of lives around the globe.

1. CIAs secret Operations

Central I ntelligence Agency (CI A) on of the most active and dynamic intelligence setups in the world needs massive amount of money to carry on its clandestine operations all over the world. I t has happened w hen CIA used local sources to conduct a coups, assassinations, regime change, etc. As U.S. has a long history to support democracy by hook and crook until and unless a dictator is ready to serve U.S. interests to prolong its rule. Operations like the one completed in Iran in 1953 to remove Prime Minister Mussadaq and backing Shahs regime by using assets in civ il society, or in I raq in 1975 to arm I raqi Kurds to destabilize Pre-Saddam I raq or more recently using its assets in Pakistan to pav e the way of direct U.S. intervention in Pakistan under pretext of hunting Al-Qaeda. These kinds of operations need a lot of financial input. Usually CI A arranges revenue from its own means for this kind of operations where expenses cant be predicted by any measure. Funds from Whitehouse always need a complete audit and detailed reports about usage of these funds. There are numerous occasions when CIA never shared details of operations with its own analytical wing nor w ith any other public office in Washington. Most of the time it is drug money that compensates these expenses. CI A operations are not only single expenditure fulfilled by drugs there are also other deficiencies which are compensated with this money like financial institutes and banks in current financial crisis. UNODC Executive Director Antonio Maria Costa based in Vienna revealed that drug money often became the only available capital when the crisis spiraled out of control last year.

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The United Nations Office on Drugs and Crime had found evidence that inter bank loans were funded by money that originated from drug trade and other illegal activities, Costa was quoted as saying. There were signs that some banks were rescued in that way. It is not only CIA anymore in trade for using it as gold mine to finance its illegal operations all over the world but U.S. economy also need some liquidity in its banks, it doesnt matter if it is coming by drug trade.

2. Drug Production & Consumption

Afghanistan is largest producer of heroins main ingredient; opium and opium is nothing new in this part of the world. In Afghanistan and FATA, Pakistan it is being produced since centuries; used as remedy for various diseases. Commercial production of opium began just during the Russian inv asion in Afghanistan where it is estimated to produce some 8250 metric tons (Source: AmericanFreePress.net, November 24, 2008) of opium per year which makes 85% to 90% of the worlds supply of opium. This also contributes tow ards Afghan warlords w ealth directly. This is w hat CI A brought to the region: Opium production without a brand name obviously. Todays world opium production map is as under;

Left: Demand and trafficking of drugs globally. U.S. is one of very high concentration drug trafficking territory thanks to Regans National Security Council w ho turned a blind eye tow ards South American cocaine socking into U.S. in 1980 when CIA was backing all the drug traffickers of Contra movements in Nicaragua. Markets for these drugs stretched world over from Western Europe to Far East, From Canada to Latin America and From China to Morocco, Africa. Profits related to this business also vary along with markets location. This business enriches not only the United States-friendly Afghan warlords but also elements of the Northern Alliance, the U.S. key ally in the country. More disturbing is fact that this money also contributes in CIAs operations against Pakistan as well. CIA - Secret Operations, Drug Money

Page | 6 3. Contra Movements (1980)

In Asia demand for heroin is more than any other drug but it is not the case world over. Cocaine is favourite drug which is consumed the most. Cocaine was nothing new in South American countries but it was only during Nicaraguan contra mov ements against the then dictator it got shoot up. It w as again CIAs regime change operation to bring democracy in Nicaragua. I t w as during this period when the whole region saw an unprecedented surge in cocaine trafficking in 1980. This has been investigated none other than but by CI As inspector general in later years.

Was CIA a part of this?

Answer is not only CIA was aiding these cocaine traffickers and money-launderers but Ronald Reagons National

Security Council also turned a blind eye tow ards these drug trades despite the fact that later these very drug traffickers brought cocaine to mainland U.S. According to CIAs inspector general report, published in online magazine The Consortium magazine, Oct. 15, 1998, it w as Reagans National Security Council which cleared proven drug traffickers and CI A inspector general Frederick Hitz confirmed long standing allegations of cocaine traffickers. The NSCs covert airline was the main transportation mean to do this trade in safest possible way.

Figure 1 - Armed men of Nicaragua insurgency during 1980s, armed with CIA weapons bought with drug money.
Most stunning part of all this contra movements and CIA involvement is methods these movements used to dismantle the then Nicaraguan government including bombing and killing of civilians and CIA withheld all evidence of contra crimes from Justice

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Department, the Congress and even its own analytical division just to conceal its connection w ith drug traffickers.

4. Afghanistan
As it is mentioned earlier that Afghanistan was not a hub of drug supply to world before Russian invasion in 1979. It was CIA once again to implement what it successfully implemented in Nicaragua in 1980. Now, Afghanistan is biggest contributor in drug production with its massive opium production.

Russian Afghan War (1979-1989)

CI A was not fully done with contra movements when Russia invaded Afghanistan in 1979 threatening the region with her expansionist design to gain control over Afghanistan and Baluchistan province of Pakistan to reach Arabian Sea. Pakistan decided to confront Russia inside Afghanistan to thwart communist designs. CI A found an opportunity in Afghanistan to settle its long standing duel with Russian for global dominion, after initial successes by Afghan fighters. CI A once again brought tested formula of drug to finance this war which it used in South America with only difference in prescription w here cocaine was replaced w ith heroin. Poppy cultivation was nothing new to Afghan but it was level of production and demand created by international traffickers in the world which shocked many in vicinity of these poppy fields. Profit gained by these drugs was main driv ing force behind all this trade and w ith heroin it w as much more than w hat it was with cocaine. Ironically U.S. and Europe became biggest markets of heroin prepared produced in Afghanistan. Regans administration is also a common factor in both Afghan heroin trade and contra cocaine traffickers. Role of CIA in first Afghan war was not overt as it could provoke Russians in more direct retaliation albeit Cuban missile crisis of 1960s. To avoid that kind of hostility it was more suitable for CIA to have silent links with Afghan warlords and providing sources to grow poppy. By the end of Russian invasion in 1989 Afghanistan was second largest opium production spot w ith 1350 Metric ton after notorious Golden Triangle including countries like Laos, Thailand, Burma and Vietnam which w as producing 2645 Metric ton at that time leaving Latin America way behind with just 112 Metric ton, as per U.S. Drug Enforcement Administration.

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Pre and Post Taliban Era (1994-2001)
In 1994 unrest and law lessness in Afghanistan gave rise to Taliban. Motivated with their strict religious background and education they put ban on all kinds of drugs in territory under their control but this w as not the cure for chronically infected Afghan economy and society. Non availability of any job market and strong hold of Northern Alliance of Northern part of country remained biggest challenge to these efforts to cut down poppy cultivation in Afghanistan. But despite all the challenges Talibans w ere able to

Figure 2: Afghan opium sells in cheap at home, worth a fortune in U.S. market put a serious cut on opium production in Afghanistan by start of 2001 w hen they were about to capture Northern Alliances strong hold Mazar-e-Sharif but post 9/11 scenario not only changed the geopolitical dynamics of the w hole world but also destroyed the efforts of Taliban to control opium production. Left: I n year 2001, just before U.S./NATO inv asion into Afghanistan, Taliban were able to cut down opium production by a decisive margin. This w as also one of core reasons against Taliban along w ith other excuses. After year 2002, when Taliban were removed from power there is a historical increase in opium production in Afghanistan, money is

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going to pentagon to carry on Afghan and Iraq w ar despite a historical recession in U.S..

Recent Afghan Conflict (2002 To date)

Afghanistan is leading opium production in world today but after the inv asion of U.S. in 2002 Afghanistan is also attributed to have largest heroin production in the world as well. Without active support of Pentagon and CI A it is not possible to export drug prepared with more than 8000 metric tons of opium. U.S. relations with Northern Alliance in Afghanistan after Taliban hav e given a free license to drug producers, traffickers. CIA and Pentagon both have their links to all these criminals in order to get supplies of the drugs and export it in U.S. Army planes. It has been reported that CI A used U.S. Army planes leav ing Afghanistan carrying coffins which were filled with drugs instead of bodies. To make sure undisturbed trade U.S. appointed all Northern Alliance drug lords at key posts in Afghanistan and most prominent appointment was none other than President Hamid Karzai. Karzais brother, head of Kandahars provincial council is proven drug trafficker facilitating the transportation of heroin from Kandahar eastward through Helmand and out across the Iranian border. There is no reason to believe that CI A is not aw are of this but as it is all one big enterprise where Karzai is also a partner so no danger to his brother. Bush administration pushed the level of poppy cultivation to next level in Afghanistan just to keep Wall Streets alive in crisis. Many top Bush administrations officials were worried about grow ing influence of countries in Golden Triangle (Loas, Thailand, Vietnam, Burma) in Russian and Chinese drug markets. Like Oil in I raq this w as just another opportunity for the Bush administration to have some quick bucks. Blames for using drugs to fight with NATO and U.S. forces is alw ays put on Taliban. But looking at areas of Talibans active zones one can easily understand where all this

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poppy cultivation is taking place. Taliban put ban on poppy w hen they were in charge of majority of Afghan territories and Kabul, the capital. Afghanistan w as suffering worst economic crisis at that time but Taliban never went to build their economy w ith heroin trade. Now it is just ridiculous to blame Taliban to have vast fields of poppy and having enough peace and time to grow and process it into heroin and then trade it in Pakistan and Iran to dens it to destinations in Eastern Europe. Below is map of Afghanistan indicating high poppy cultivation provinces and it is quite ev ident that Taliban dominant Left: Ahmed Wali Karzai, appointed by his brother, President Hamid Karzai, to represent Kandahar province in Kabul. According to media reports he is main player in exporting heroin and opium to European countries through Turkmenistan. Provinces like Kunar, Pektika, Paktya has low poppy cultivation and other provinces where all U.S./CIA supported w arlords are holding key positions are growing most of opium crop. It was only after U.S. invasion there was a 4400% increase in opium production. U.S. role in Afghan social debacle will go in history as described The Huffington Post on October 15, 2008 When the history of U.S. involvement in Afghanistan is written, Washingtons sordid involvement in the heroin trade and its alliance with drug lords and war criminals of the Afghan Communist Party will be one of the most shameful chapters.

5. Pakistan: Indirect Victim of the CIAs Drug business

Almost the w hole w orld is affected by this drug trade but countries w hich lie in routes of drug traffickers are worst effected after the original drug markets. Countries like Pakistan are paying a very high price for U.S./CI A drug trade as there is a constant increase in drug addiction in Pakistan. Iran is another country which happens to be in route of international drug traffickers so it is also facing problem of smuggling of heroin and morphine from Afghanistan and Pakistan to Turkey and Europe. After U.S. invasion of Afghanistan this route has become active manifold then it was previously. Effects of this trade are not limited to drug usage only but it destroys the social fabric in a society and gives rise to street crimes in order to get some cash to buy drugs from CIA - Secret Operations, Drug Money

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street market. A more horrible outcome is spread of HIV virus among addicted persons when they share the injection syringes. This threat is increasing with each passing day as number of HIV positive is increasing. Another disastrous effect it brought to Pakistan and Afghanistan other neighbors is serious law and order situation in bordering area of each country with Afghanistan. Combating this evil trade is not possible until a holistic effort is made by international community in this regards but its chances are bleak as this trade is needed by global imperialism (I srael, U.S., UK) more than ever before to give some support to their dying economies.

Above: Pakistan has become main artery in heroin trafficking route and it has a lot of implication on Pakistani security. Level of drug addicted also increased over the year due to high availability of drugs in street market. Afghanistan is main producer but Pakistan us w here most of drugs are seized.

6. Conclusion
Under current situation it is very important for countries like Pakistan, Iran, Afghanistan and Russia to think about how to put jinni of drug back to the bottle before international drug mafia takes over these countries by destroying their social norms and v alues.

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CI A not only has a long history of hav ing links with traffickers but also encouraging the drug trade to get its own interests served. CIA always encourages this trade even if it affected its own citizens like in Contra movements of 1980. Afghanistan became leader in opium production and main hub for providing heroin and its main ingredient to whole world. All this happened under the control of champion of human rights U.S. and its intelligence setup mainly CI A. Situation is becoming more and bleaker unless Pakistan, China, Russia, Iran and Afghanistan governments start thinking about this trade and its far reaching affects on U.S. economy and CI As funding. It is time w hen the whole region should become equivocal against this trade and ask U.S. to leave the region for greater good of the billions of people in region. Farzana Shah BrassTacks Team.

CIA - Secret Operations, Drug Money