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Secretary of State Henry Kissinger, determined to prove to President Nixon that news stories about the secret Cambodian bombings are not being leaked to the press by liberals in the National Security Council offices, urges FBI director J. Edgar Hoover to wiretap several of Nixon’s top aides, as well as a selection of reporters. Kissinger will later deny making the request. (Werth 2006, pp. 169) In March 1973, W. Mark Felt, the deputy director of the FBI and Washington Post reporter Bob Woodward’s famous “Deep Throat” background source, will confirm the wiretappings, saying: “In 1969, the first targets of aggressive wiretapping were the reporters and those in the administration who were suspected of disloyalty. Then the emphasis was shifted to the radical political opposition during the [Vietnam] antiwar protests. When it got near election time , it was only natural to tap the Democrats (see Late June-July 1971 and May 27-28, 1972). The arrests in the Watergate (see 2:30 a.m.June 17, 1972) sent everybody off the edge because the break-in could uncover the whole program.” (Bernstein and Woodward 1974, pp. 271) Felt will tell Woodward that two of the reporters placed under electronic surveillance are Neil Sheehan and Hedrick Smith. Pentagon Papers leaker Daniel Ellsberg will leak the Defense Department documents to Sheehan (see March 1971). Eventually, future FBI director William Ruckelshaus will reveal that at least 17 wiretaps are ordered between 1969 and 1971. The logs of those wiretaps are stored in a safe in White House aide John Ehrlichman’s office. In all, 13 government officials and four reporters are monitored. (Bernstein and Woodward 1974, pp. 313) The FBI will send Kissinger 37 letters reporting on the results of the surveillance between May 16, 1969 and May 11, 1970. When the surveillance is revealed to the Senate Watergate Committee, it will be shown that among those monitored are Nixon speechwriter and later New York Times columnist William Safire; Anthony Lake, a top Kissinger aide who will later resign over the secret bombings of Cambodia; and the military assistant to Secretary of Defense Melvin Laird, whom Kissinger regards as a political enemy. (Woodward 2005, pp. 21-22)
On April 24, President Nixon orders US and South Vietnamese troops to secretly invade the “Parrot’s Beak” region of Cambodia, thought to be a Viet Cong stronghold. The decision is controversial. Nixon knows that many senior military officials, as well as his Secretary of Defense, Melvin Laird, will oppose the operation, so he carefully keeps Laird ignorant of the invasion plans. National Security Adviser Henry Kissinger privately alerts Laird to some of the less controversial elements of the operation (but not the use of US forces in the invasion), and Laird recommends advising Congress of the imminent military action. Kissinger says Nixon will handle that himself. (Nixon only tells one Congressman, Senator John Stennis (D-MS), the hawkish chairman of the Armed Services Committee.) As the evening wears on, Nixon repeatedly calls Kissinger’s office, barking out contradictory orders and hanging up, as he flip-flops on whether to actually go through with the plan. “Our peerless leader has flipped out,” Kissinger tells his staff. Nixon calls Kissinger with further orders and tells him, in a slurred, perhaps inebriated voice, “Wait a minute, Bebe has something to say to you.” Charles “Bebe” Rebozo, Nixon’s longtime friend and millionaire political and personal financier (who has been thoroughly informed of the operation when many senior government and officials have not), takes the phone and says, “The president wants you to know that if this doesn’t work, Henry, it’s your ass.”
Staffers Resign - Kissinger, who has himself kept his staff ignorant of the invasion, tells one staffer, William Watts, to coordinate the National Security Council’s work on the invasion. But Watts, outraged at the secret invasion of a neutral nation, refuses. “Your views represent the cowardice of the Eastern establishment,” Kissinger snaps. Watts comes towards Kissinger as if to strike him, then turns and walks out of the office. Watts resigns his position minutes later. Kissinger’s military aide, Alexander Haig: tells Watts: “You can’t resign.… You’ve just had an order from your commander in chief.” Watts retorts, “F_ck you, Al, I just did.” Two other Kissinger staffers, Anthony Lake and Roger Morris, also resign over the invasion.
Others Informed - The plans are finalized by Nixon and Kissinger, with Rebozo sitting in on the discussion. Only on the evening of April 26 do Laird, Secretary of State William Rogers, and other Cabinet officials learn of the plans to invade Cambodia. Rogers is horrified; Laird is ambivalent, but furious that he was left out of the decision-making process. The invasion takes place on April 28. Congress and the press learn of the invasion on April 30. (Reeves 2001, pp. 199-206)
US President Bill Clinton and National Security Adviser Anthony Lake decide that they will give the Bosnians a “green light” for the arms supply pipeline from Iran to Croatia. The CIA is not consulted. Lake passes the word on to US ambassador to Croatia Peter Galbraith by “cleverly” telling him that they have “no instructions” for him with regard to the Iranian arms shipments. (Wiebes 2003, pp. 167- 168) Two days later, Galbraith passes the “no instructions” message on to Croatian President Franjo Tudjman, making it clear that the US government is giving him a green light for Croatia to conduct arms deals with Iran. (Beelman 1997)
The differences on Bosnia policy between Madeleine Albright, Anthony Lake, and Richard Holbrooke on the one hand and the Pentagon on the other, are aired at a cabinet meeting. Albright et. al. argue for a firm commitment to military intervention. “They maintained that the stakes went far beyond the particulars in Bosnia. The issue was not one state or two, three, or none. Rather, the issue was US credibility as a world leader, its credibility in NATO, the United Nations, and at home.” Meanwhile, “the Pentagon was most concerned about avoiding a sustained military involvement, and saw in arm, train, and strike the shades of Vietnam.” Clinton comes down firmly on the side of intervention. After the meeting, Anthony Lake is dispatched to Europe to brief US allies on the new policy on Bosnia. (Daalder 2000, pp. 106 - 110)
Counterterrorism expert Steven Emerson, head of the Investigative Project on Terrorism, criticizes the Clinton administration for its ties to Abdulrahman Alamoudi in a Wall Street Journal editorial. Alamoudi is a prominent Muslim activist and heads an organization called the American Muslim Council (AMC). Emerson notes that on November 9, 1995, President Clinton and Vice President Al Gore met with Alamoudi as part of a meeting with 23 Muslim and Arab leaders. And on December 8, 1995, National Security Adviser Anthony Lake, met with Alamoudi at the White House along with several other American Islamic leaders. Emerson notes that Alamoudi openly supports Hamas, even though the US government officially designated it a terrorist financier in early 1995 (see January 1995), and he has been the primary public defender of high ranking Hamas leader Mousa Abu Marzouk, who the US declared a terrorism financier and then imprisoned in 1995 (see July 5, 1995-May 1997). He notes that Alamoudi’s AMC also has close ties to other Islamist groups such as the Muslim Brotherhood, and in 1994 the AMC co-sponsored a trip to the US for Sudanese leader Hasan al-Turabi, a well-known radical militant who is hosting Osama bin Laden in Sudan at the time. Emerson concludes, “The president is right to invite Muslim groups to the White House. But by inviting the extremist element of the American Muslim community—represented by the AMC—the administration undercuts moderate Muslims and strengthens the groups committing terrorist attacks.” (Emerson 3/13/1996) It will later be reported that in 1994, US intelligence discovered that the AMC helped pass money from bin Laden to Sheikh Omar Abdul-Rahman, but it is not known if Clinton was aware of this (see Shortly After March 1994). But Alamoudi’s political influence in the US will not diminish and he will later be courted by future President Bush (see July 2000). He will eventually be sentenced to a long prison term for illegal dealings with Libya (see October 15, 2004).
The Naval War College in Newport, Rhode Island, and Wall Street bond firm Cantor Fitzgerald hold three “economic security exercises,” in which the participants consider, among other scenarios, terrorists attacking the US financial community with bombings using aircraft. The exercises are intended to explore the link between national security and economic issues. (Cantor Fitzgerald 4/29/1999; Barnett and Hayes 5/18/2001; Rothkopf 9/12/2011) They bring together “key figures from the national security, governmental, and financial communities to explore and test the relationships between international events, national security, and financial markets,” according to a report prepared by the Naval War College. (Hayes 6/1998, pp. 1 ) The exercises are all held in New York. (Barnett and Hayes 5/18/2001) The first one takes place on the top floor of one of the Twin Towers of the World Trade Center, where Cantor Fitzgerald has its main offices. (Johnston 3/6/2002; Associated Press 1/19/2011) Whether the second and third exercises also take place at the WTC is unstated.
1997 Exercise Considers Attacks on the US Financial Community - The first exercise, held in October 1997, is based around two related scenarios that would take place in February and March 2000, in the middle of the US presidential primary season. (Platt 12/22/1997; Hayes 6/1998, pp. 1 ) The first scenario involves a crisis “spilling out of conflict in the oil fields of the Middle East,” which is “followed by terrorist assaults against oil fields in the Persian Gulf and US military installations,” according to Fortune magazine. America’s access to Persian Gulf oil supplies is threatened and there is a disruption of the “sea lines of communication.” The second scenario involves a cyber-terrorist attack on Wall Street, in which information warfare attacks are launched against the critical infrastructures underpinning America’s business and financial communities. The computer networks of US financial institutions and power grids in the New York area are targeted, with the intention of inflicting psychological and economic damage on the US. (Platt 12/22/1997; Barnett and Hayes 5/18/2001; Olster 10/8/2001) Furthermore, according to David Rothkopf, managing director of Kissinger Associates, who attends the exercise, participants consider “a variety of potential ways terrorists might target the US financial community, including bombings using trucks or aircraft.” (Rothkopf 9/12/2011)
Senior Government Officials Attend the 1997 Exercise - The exercise addresses the potential vulnerability of the US to “asymmetric warfare,” which one participant will later describe as warfare in which “a little guy with the right technology can confront the big giant in a devastating way.” (Platt 12/22/1997) In the simulated scenarios, according to Fortune, “the terrorists succeeded spectacularly.” (Olster 10/8/2001) Those attending the exercise include Richard Clarke, President Clinton’s special assistant for global affairs, Rand Beers, special assistant to the president and senior director for intelligence programs, and Anthony Lake, the former national security adviser. (Platt 12/22/1997; Rothkopf 2014, pp. 266)
1998 Exercise Involves a Rebellion in Indonesia - The second exercise, held on June 1, 1998, focuses on a hypothetical financial crisis combined with a sea lines of communication disruption in Asia, involving Indonesia. The scenario, which would take place around late 1998 to early 1999, involves opposition forces mounting successful rebellions in parts of Indonesia and leaders of the opposition movement declaring themselves Indonesia’s legitimate government. The US military intervenes in response to the crisis. Subsequently, “malevolent insiders” launch coordinated attacks against selected financial institutions in Singapore. These are followed by cyberattacks against some financial institutions in Japan. (Hayes 6/1998 ; Barnett and Hayes 5/18/2001)
1999 Exercise Is Based around the Y2K Computer Problem - The third exercise, held on May 3, 1999, focuses on the possible global financial consequences of a serious Year 2000 computer problem, caused by computers being unable to properly read dates at the start of the new millennium, as well as “related events surrounding the millennial date change event.” (Feder 2/9/1999; Cantor Fitzgerald 4/29/1999; Barnett and Hayes 5/18/2001)
Cantor Fitzgerald Requested the 'War Games' in the Mid-1990s - The three economic security exercises are the “brainchild” of retired Admiral William Flanagan, former commander in chief of the Navy’s Atlantic Fleet, who is now the senior managing director of Cantor Fitzgerald. (Wall Street Journal 5/5/1997; Barnett 10/2001; Swift and Dorsey 9/11/2006) According to Thomas Barnett, a senior strategic researcher at the Naval War College, they have come about because Cantor Fitzgerald went to the Naval War College in the mid-1990s and said it would like to run “economic-oriented war games” with the college. (Kreisler 3/8/2005) Several senior members of Cantor Fitzgerald have close professional ties with the US Navy, so the collaboration between the company and the Naval War College is a “natural partnership,” according to a report prepared by the college. (Hayes 6/1998, pp. 1 )
Exercise Scenarios Are 'Amazingly Prescient' - The fact that the exercises explore “such real-world scenarios as a terrorist strike on Wall Street, war in the Persian Gulf, and a financial crisis in Asia,” Barnett will comment after 9/11, “proved amazingly prescient.” (Barnett 2004, pp. 197) “September 11 was crystallizing,” he will say. “We all just went, ‘This is what we were talking about: a peacetime, war-like event that’s so profound it forces us to rethink everything.’” (Chaikivsky 12/2002) The exercises will evolve into something called the “New Rule Sets Project,” which is a research partnership between the Naval War College and Cantor Fitzgerald that aims to explore how globalization is altering America’s definitions of national security (see May 1, 2000-June 4, 2001). (Barnett 2004, pp. 46; Kreisler 3/8/2005) Cantor Fitzgerald will suffer the greatest single loss by any company on 9/11, with 658 of its employees dying in the North Tower of the WTC. (Business Week 9/10/2006)
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