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Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys repeatedly tells Jean Gollatz of the Pennsylvania State Government that a pilot government-owned version of the PROMIS software for Prime computers is available for her use, if she wants it. He also provides her with a copy of a request for proposal used by his office for a computer contract at some time in early 1982, and says that his office’s enhanced Prime version should be available by mid-summer 1983. [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).
CIA Director William Casey gets a legal exemption sparing the CIA for a requirement that it report on drug smuggling by CIA officers, agents, or assets. Attorney General William French Smith grants the exemption in a secret memorandum. On March 2, Casey will thank Smith for the exemption, saying it will help protect intelligence sources and methods. [Cooley, 2002, pp. 110-111] There are allegations that in 1981 President Reagan approved a covert program to weaken Soviet soldiers fighting in Afghanistan by addicting them to illegal drugs (see February 1981 and After). A book co-written by two Time magazine reporters will even allege that “a few American intelligence operatives were deeply enmeshed in the drug trade” during the war. [Scott, 2007, pp. 124-125] President Clinton will rescind the exemption in 1995. [Cooley, 2002, pp. 111]
The Reagan administration asks Congress for $4.3 billion for what the 1980 GOP campaign platform called a “civil defense which would protect the American people against nuclear war at least as well as the Soviet population is protected.” The funding request is for a program, based on the platform plank, that the administration says will protect 80 percent of Americans in case of a massive Soviet nuclear strike. President Reagan’s chief of the Federal Emergency Management Agency (FEMA), Louis Giuffrida, says of nuclear war, “It would be a terrible mess, but it wouldn’t be unmanageable.” FEMA’s head of civil defense, William Chipman, says that most civilians would not only survive a nuclear onslaught, but would rebuild society in short order: “As I say, the ants eventually build another anthill.” [Scoblic, 2008, pp. 130]
Douglas Feith, a neoconservative (see Early 1970s) serving as a Middle East analyst for the National Security Council, is fired after becoming the focus of an FBI inquiry into his giving classified NSC information to an Israeli embassy official in Washington. [CounterPunch, 2/28/2004] (Feith has always been a hardline advocate for Israel; his father, Dalck Feith, was a hardline Republican who, in his youth, was active in the militant Zionist youth movement Betar, the predecessor of Israel’s Likud Party. Both Feith and his father will be honored by the hard-right, Likud-aligned Zionist Organization of America.) [Inter Press Service, 11/7/2003] In 1992, Feith will write of his belief that the US and Israel should freely share technology; author Stephen Green will write regarding Feith’s leak of classified information to Israel that “what [Feith] had neglected to say… was that he thought that individuals could decide on their own whether the sharing of classified information was ‘technical cooperation,’ an unauthorized disclosure, or a violation of US Code 794c, the ‘Espionage Act.’” Feith is almost immediately rehired by fellow neoconservative Richard Perle to serve as Perle’s “special counsel” (see Mid-1982); Feith will work for Perle until 1986, when he forms what Green will call “a small but influential law firm… based in Israel.” [CounterPunch, 2/28/2004]
The Pentagon releases its tightly classified five-year plan for the US’s military policy, the Fiscal Year 1984-1988 Defense Guidance. A central element of the plan is its acceptance of the winnability of a “protracted nuclear war” with the Soviet Union. Although such an idea is publicly repudiated by President Reagan (see March-April 1982), the idea is set into policy by the White House’s National Security Decision Directive 32, which mandates the modernization of US nuclear forces with regard to “developing a capability to sustain protracted nuclear conflict” (see May 20, 1982). The Defense Guidance document mandates that during a lengthy nuclear conflict, US forces “must prevail and be able to force the Soviet Union to seek earliest termination of hostilities on terms favorable to the United States.” The Defense Guidance document is leaked to the New York Times, which reports its existence in an article entitled “Pentagon Draws Up First Strategy for Fighting a Long Nuclear War.” [Scoblic, 2008, pp. 127; Air Force Magazine, 3/2008] In 2008, J. Peter Scoblic will write that the Reagan administration’s position is not, at first glance, markedly different from that of its predecessors; since the Kennedy administration, the government’s various agencies and departments have worked to provide some sort of viable “nuclear flexibility” that would give the US a nuclear option besides an all-out nuclear strike—a “war orgasm,” in nuclear war scholar Herman Kahn’s terminology. But Scoblic will note that those other administrations recognized the likelihood of any limited nuclear exchange quickly escalating into an all-out barrage by both nations. The Reagan administration does not accept this as a likelihood, Scoblic will observe. No other administration had made specific plans for a nuclear war that would last six months, with, as Scoblic will write, “pauses for reloading silos and firing fresh volleys of missiles.” The Pentagon plan provides for what it calls “a reserve of nuclear forces sufficient for trans- and post-attack protection and coercion,” or, in Scoblic’s words, “having enough weapons to win one war… and immediately be ready to deter or fight another.” [Scoblic, 2008, pp. 128]
Inslaw wins a $9.6 million contract from the Justice Department to install the public domain vesion of PROMIS application in 20 US attorneys’ offices as a pilot program. PROMIS is an application designed to be used by prosecutors to keep track of case records (see Mid-1970s). If the trial installation is successful, the company will install PROMIS in the remaining 74 federal prosecutors’ offices around the country. The contract is also for the necessary training, maintenance, and support for three years. According to William Hamilton, one of Inslaw’s owners, the eventual market for complete automation of the Federal court system is worth up to $3 billion. However, this is the last contract Inslaw receives from the Justice Department for PROMIS, as the deal becomes mired in a series of disputes. [US Congress, 9/10/1992; Wired News, 3/1993]
In public, President Reagan says forcefully that nuclear war with the Soviet Union is not a viable option. In March, he says in response to a question as to the possibility of a victory in such a war, “I don’t believe there could be any winners… everybody would be a loser.” In April, he says flatly, “A nuclear war cannot be won and must never be fought.” Yet out of the public eye, the Pentagon is preparing a document that espouses a “protracted nuclear war” as an officially viable alternative for the US (see March 1982). [Air Force Magazine, 3/2008]
The Dartmouth Review, a conservative weekly student newspaper funded by off-campus right-wing sources (see 1980), runs an article opposing affirmative action that many feel is blatantly racist. The article is titled “Dis Sho’ Ain’t No Jive, Bro,” written by former Review chairman Keeney Jones. The article is the third in a series of attacks on affirmative action by Jones; the earlier articles featured Jones wishing he could medically darken his skin so he could get into medical school, and his claim that he was taking speech lessons to learn how to speak “black.” This article is written entirely in Jones’s version of “black dialect,” and features the following selection: “Dese boys be sayin’ dat we be comin’ to Dartmut’and not takin’ the classics. You know, Homa, Shakesphere; but I hes’ dey all be co’d in da gound, six feet unda, and whatcha be askin’ us to learn from dem? We culturally ‘lightened, too. We be takin’ hard courses in many subjects, like Afro-Am studies, women’s studies, and policy studies. And who be mouthin’ ‘bout us not bein’ good road? I be practicly knowin’ ‘Roots’ cova to cova, ‘til my mine be boogying to da words! And I be watchin’ the Jeffersons on TV ‘til I be blue in da face.” Upon receiving the article, Review board member Jack Kemp (R-NY), a Republican congressman, resigns from the board, saying Kenney’s article “relied on racial stereotypes” and undoubtedly offended many readers. “I am even more concerned that others found in it some support for racist viewpoints,” Kemp continues, and concludes: “I do not want my name to appear in your paper. I am concerned that the association of my name with the Dartmouth Review is interpreted as an endorsement and I emphatically do not endorse the kind of antics displayed in your article.” The Review appears unmoved by Kemp’s resignation, with editors saying they hope to replace him with televangelist Jerry Falwell. Editor Dinesh D’Souza says the paper bears no responsibility for any allegations of racism, and tells a New Hampshire reporter, “It is not the Dartmouth Review but the Afro-American Society which is the primary cause of racial tension on campus.” The undergraduate council and the faculty later votes to condemn the Review for creating a racially divisive atmosphere; Dartmouth’s president will write a letter saying the Review performs “offensive practices,” but that the issue cannot be solved by “violence or intolerance.” [Dartmouth Free Press, 9/20/2006]
A study prepared for the Congressional Joint Economic Committee acknowledges Cuba’s successes in education and health care. “[T]he Cuban revolution has managed social achievements, especially in education and health care, that are highly respected in the Third World…. [These include] establishment of a national health care program that is superior in the Third World and rivals that of numerous developed countries,” the report says. [US Congress, 3/22/1982, pp. 5; Feinsilver, 1993, pp. 81-5]
C. Madison “Brick” Brewer gets the job of supervising a contract with Inslaw for the installation of the PROMIS database and search application (see March 1982). [US Congress, 9/10/1992; Wired News, 3/1993] According to a report by the House Judiciary Committee, Brewer gets the job from William P. Tyson of the Justice Department’s Executive Office for US Attorneys (EOUSA). [US Congress, 9/10/1992] However, according to Wired magazine, Brewer is appointed by EOUSA Director Laurence McWhorter, who had told a previous candidate for the position that he was “out to get Inslaw” (see Spring 1981). [Wired News, 3/1993] Brewer had originally been hired by the EOUSA in January. [US Congress, 9/10/1992] He once worked for Inslaw, but was allowed to resign when its founder William Hamilton found his performance inadequate (see 1976). [Wired News, 3/1993] Brewer will soon demonstrate his hostility to Inslaw, and the company will ask that he be replaced (see April 14, 1982, April 19, 1982, and Mid-April 1982).
Importance of Job - As the project manager, Brewer is involved in all major contract and technical decisions, including forming the department’s position on Inslaw’s claim that it should be paid for privately-funded enhancements it makes to PROMIS. Brewer also reports on progress on the contract to the department’s PROMIS Oversight Committee (see August 13, 1981 or Before).
Comment by Assistant Attorney General - Assistant Attorney General Lowell Jensen will later comment: “I would think that the better path of wisdom is not to do that [i.e. hire an allegedly fired employee to direct the contract of his former employer] if that’s possible to do. I think that it’s better to have these kinds of issues undertaken by people who don’t have questions raised about them one way or the other whether they are biased in favor of or against the people they deal with.” However, this thinking apparently does not impact the department’s decision to hire Brewer.
House Judiciary Committee Investigation - In the light of these circumstances, the House Judiciary Committee will call the appointment a “curious choice,” partly because Brewer tells it: “I was not a computer person. We talked about my role viewed as being liaison, the person who would make things happen, a coordinator. It was not contemplated that I would, by osmosis or otherwise, learn computer science.” After interviewing Justice Department staff, the committee will find that it is “unable to determine how Mr. Brewer came to be considered for the position.” The committee will also point out: “The potential conflict of interest was an unsatisfactory situation irrespective of his admittedly negative feelings about his forced resignation from the company. Had Mr. Brewer taken actions which could have been construed to unduly favor Inslaw throughout the life of the contract, similar questions of potential conflict could just as easily have arisen either from within the department or from outside competitors of the company.”
Findings of Government Accountability Office and Permanent Subcommittee on Investigations - The Government Accountability Office and Congress’s Permanent Subcommittee on Investigations (PSI) will find that Brewer’s appointment as project manager creates an appearance of a conflict of interest that should have been avoided by the department. The PSI report will say, “The staff finds that the department exercised poor judgment in ignoring the potential for a conflict of interest in its hiring of the PROMIS project director [Brewer], and then, after receiving allegations of bias on his part, in failing to follow standard procedures to investigate them in a timely manner.”
Courts' Opinions - During the legal proceedings that stem from a dispute between Inslaw and the department, two courts will comment on the issue. George Bason, of the Bankruptcy Court for the District of Columbia, will say, “On the basis of the evidence taken as a whole, this court is convinced beyond any doubt that Brewer was consumed by hatred for and an intense desire for revenge against Mr. Hamilton and Inslaw, and acted throughout this matter in a thoroughly biased and unfairly prejudicial manner toward Inslaw.” William Bryant, of the District Court for the District of Columbia, will add, “The nature and circumstances of his separation from that employment are somewhat in dispute, but it is clear that Brewer was not happy in his job when he left it after being urged to do so by Hamilton.”
Brewer's Motivation - Inslaw attorney Harvey Sherzer will comment in court on one of the motivations apparently driving Brewer: “[H]e seemed to think there was something wrong with a contractor benefiting from a government contract.… The gist of what he seemed to be saying was that by performing this contract Inslaw and Mr. Hamilton, specifically, was making an effort to expand the company. And there seemed to be a negative inference toward Inslaw’s ability to use the base created by this contract to expand.” [US Congress, 9/10/1992]
Office of Professional Responsibility Conclusion - On the contrary, the Justice Department’s Office of Professional Responsibility will examine the matter and rule there is no conflict of interest. Brewer will later tell a federal court that everything he does regarding Inslaw is approved by Jensen. Jensen had previously supervised a product known as DALITE, which lost a major contract to Inslaw in the 1970s. [Wired News, 3/1993]
Entity Tags: Lowell Jensen, William Bryant, Office of Professional Responsibility, Laurence McWhorter, Permanent Subcommittee on Investigations, US District Court for the District of Columbia, House Judiciary Committee, Harvey Sherzer, Bankruptcy Court for the District of Columbia, C. Madison “Brick” Brewer, Inslaw, Inc., Executive Office for US Attorneys (DOJ), George Bason, Government Accountability Office, Frank Mallgrave, William P. Tyson
Timeline Tags: Inslaw and PROMIS
A lawyer acting for Inslaw writes to the Justice Department telling it that Inslaw intends to market a version of the PROMIS software commercially. The lawyer, Roderick M. Hills of Latham & Watkins, tells Associate Deputy Attorney General Stanley E. Morris, who is also a member of the committee overseeing PROMIS, that, even though the software was initially developed with government money (see Mid-1970s), private enhancements to it mean that Inslaw can sell the improved version for a fee. The letter is accompanied by a memorandum from Inslaw owner William Hamilton explaining the situation. Inslaw and the department have just signed a contract for Inslaw to implement the public domain version of the software at US attorneys’ offices for the department (see March 1982). However, the privately-funded enhancements mean that if the department chose to use the latest version, it would have to pay for the actual software, as well as installation and maintenance costs. [US Congress, 9/10/1992]
One month after the Justice Department and Inslaw sign a contract on the installation of PROMIS software (see March 1982), a departmental official raises the possibility of terminating the contract. At a meeting of the PROMIS Project Team, project manager C. Madison Brewer, the Justice Department’s contracting officer Peter Videnieks, and Jack Rugh, the acting assistant director for the Office of Management Information Systems Support, discuss terminating the contract with Inslaw for convenience of the government, according to notes taken at the meeting. “Discussed Inslaw’s ‘PROMIS II’ memo, termination for convenience discussed,” read Videnieks’ notes. When the contract becomes the subject of a series of legal actions, the three men begin to suffer from what the House Judiciary Committee will call “severe memory loss” over what happened at the meeting. In a sworn statement, Brewer will say he does not recall the details of the meeting, but if this recommendation were made, it was made “in jest.” However, he will admit to being upset with Inslaw’s handling of the contract and its demand for payment for enhancements it had made privately to the application (see April 2, 1982). Bankruptcy Court Judge George Bason will comment: “All of the [Justice Department] witnesses who attended the April 14, 1982 meeting professed a total lack of memory about it. They testified they had no recollection of any such meeting. This court disbelieves that testimony. None of them could offer any credible explanation, or indeed any explanation, of the meaning of Videnieks’ handwritten notes other than what this court finds to be their meaning.… These notes constitute a ‘smoking gun’ that clearly evidences Brewer’s intense bias against Inslaw, his single-minded intent to drive INSLAW out of business, and Rugh’s and Videnieks’ complicity.” [US Congress, 9/10/1992]
Inslaw asks the Justice Department to appoint a manager other than C. Madison “Brick” Brewer to run the PROMIS project that Inslaw is working on for the department. Brewer had formerly worked for Inslaw, but had left under a cloud (see 1976), and later been hired by the department to supervise the contract between it and Inslaw (see April 1982). Following initial problems with Brewer (see April 14, 1982 and April 19, 1982), Inslaw asks Associate Deputy Attorney General Stanley E. Morris to replace him, as Inslaw owner William Hamilton thinks he has antagonistic feelings toward Inslaw due to their past. However, departmental officials say that Brewer’s skills and prior employment with Inslaw were important factors in his hiring by the department. Laurence McWhorter, deputy director of the Executive Office for US Attorneys, will later say that Brewer’s employment by Inslaw qualified him to “run the implementation of a case tracking system for US attorneys” and “to basically direct the implementation of a case tracking system in US attorneys offices.” The House Judiciary Committee will comment, “It is difficult to understand, however, how… McWhorter could make this statement” because Brewer himself admitted that at the time he left Inslaw, “he had very little, if any, experience in managing computer projects and government ADP [automated data processing] procurement law,” and he also “admitted to a lack of experience or detailed understanding of computers or software.” [US Congress, 9/10/1992]
Justice Department manager C. Madison Brewer displays his hostility towards Inslaw, Inc., in a meeting to discuss the implementation of the PROMIS application. An Inslaw memorandum of the meeting says, “Brewer seized upon this issue [that Inslaw wanted to be paid for privately-financed enhancements it had made to the software] and launched into a tirade which was very emotional, unorganized, and quite illogical.” Brewer’s complaints are:
The memo claiming the payments is “typical of Inslaw and [Inslaw owner] Bill Hamilton and that it was self-serving and unnecessary.”
How did the Justice Department “know that we might say work was not finished under our government contracts and the next week copyright the work and begin selling it back to the Justice Department?”
A press release about a contract awarded to Inslaw was inaccurate because “it described West Virginia as a successful implementation when in fact, they had spent an additional 20K [$20,000] on the project and Lanier was doing all the work.”
The memo had caused “all kinds of problems in Justice and had many people upset.”
“Illinois Criminal Justice Coordinating Council, Michigan Prosecuting Attorney’s Association, Andy Voight, and others,” would say that “Inslaw did not do good or successful work.”
“Hamilton started the PROMIS system as an employee of the DC, USAO [US Attorneys Office in Washington, DC]. And that all of the software was developed with Federal funds and what right did Hamilton have to try to claim ownership of the software.”
The memo adds, “All of these comments were based with an obvious dislike of Bill Hamilton and a resentment for the success of Inslaw personified in him.” [US Congress, 9/10/1992]
President Reagan, giving a speech at his alma mater, Eureka College, renames the US-USSR SALT (Strategic Arms Limitation Talks) negotiations START (Strategic Arms Reduction Talks). The renamed negotiations reflect profound dissension within the administration for and against arms limitation talks (see January 1981 and After and Early 1981 and After). State Department official Richard Burt, formerly opposed to arms negotiations, wants to ramp up the SALT talks and seek reductions in warheads and launchers. Defense Department official Richard Perle, the neoconservative who is working to block another arms limitation with the Soviet Union (see September 1981 through November 1983), wants to focus on payloads and “throw weight.” The administration’s compromise between the two positions—START—“ma[kes] no sense whatsoever,” according to author J. Peter Scoblic.
Initial Proposal Unacceptable to Soviets - START’s initial position—reducing each side’s deployment to 850 nuclear missiles and 5,000 warheads, of which no more than 2,500 can be on ICBMs—sounds like a significant reduction on paper, but many experts on all sides of the nuclear arms issue worry that such an agreement, putting so many warheads on so few missiles, would actually encourage each side to consider a first strike in a crisis. Arms control proponent Paul Warnke says, “If the Russians accept Mr. Reagan’s proposal, he’ll be forced to reject it himself.” But because of the disparity in missile configurations between the US and the Soviets, such an agreement would require the Soviets to drastically reduce their nuclear arsenal by 60 percent, while the US would lose almost nothing; therefore, the Soviets would never agree to such a proposal. Scoblic will note that as an opening gambit this proposal might be successful, if the Americans were prepared to back down somewhat and give the Soviets something. But the US negotiators have no intention of backing down. The Soviets are keenly interested in the US agreeing to reduce the number of cruise missiles it has deployed, but Reagan signs a National Security Directive forbidding US negotiators from even discussing the idea until the Soviets made significant concessions on “throw weight,” essentially tying his negotiators’ hands.
Chief US Negotiator Insults Soviets - The negotiations are made more difficult by the US team’s chief negotiator, Edward Rowny. Rowny, a former national security adviser to hardline Senator Jesse Helms (R-NC), does not believe in diplomacy with anyone, particularly the Soviets. According to Scoblic, Rowny believes in “telling it like it is” to his Soviet counterparts, which Scoblic calls “insulting one’s negotiating opponents.” As he has no real negotiating latitude, Rowny’s diplomacy consists of little more than insults towards his Soviet counterparts. He tells them they do not understand the issues, boasts of his own Polish (i.e. anti-Russian) heritage, even stages walkouts over the seating arrangements. Rowny feels that he is opening a new era in negotiations, but in reality, the START talks are making no progress. [Scoblic, 2008, pp. 123-124]
Anti-abortion activist Don Benny Anderson tries to burn down two women’s clinics in Florida. [Kushner, 2003, pp. 38]
Iran discovers a hole in Iraq’s defenses along the Iran-Iraq border between Baghdad and Basra and prepares to launch a massive invasion aimed at severing the country in two. As Howard Teicher will later note in his 1995 affidavit, a successful invasion would give Iran control over a huge quantity of oil—precisely the outcome that the US fears most. “United States Intelligence, including satellite imagery, had detected both the gap in the Iraqi defenses and the Iranian massing of troops across from the gap.” Teicher will explain. “At the time, the United States was officially neutral in the Iran-Iraq conflict. President Reagan was forced to choose between (a) maintaining strict neutrality and allowing Iran to defeat Iraq, or (b) intervening and providing assistance to Iraq. In June, 1982, President Reagan decided that the United States could not afford to allow Iraq to lose the war to Iran. President Reagan decided that the United States would do whatever was necessary and legal to prevent Iraq from losing the war with Iran.” [Affidavit. United States v. Carlos Cardoen, et al. [Charge that Teledyne Wah Chang Albany illegally provided a proscribed substance, zirconium, to Cardoen Industries and to Iraq], 1/31/1995 ; MSNBC, 8/18/2002; London Times, 12/31/2002]
Rep. Fernand J. St. Germain (D-RI), with 28 co-sponsors, introduces HR 6267, the “Net Worth Guarantee Act” officially entitled “A bill to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans.” [Library of Congress, 5/19/2008] As introduced, the bill would create a fund for loans to those troubled banks and savings and loans institutions that would have to be put into receivership if their condition deteriorates to a small degree from the bill’s qualifying requirements. The provisions are as follows:
Amendments to the Federal Deposit Insurance Act (which regulates the Federal Deposit Insurance Corporation, FDIC), the National Housing Act (which regulates the Federal Home Loan Bank Board, FHLBB), and the Federal Credit Union Act (the National Credit Union Administration Board, NCUAB) so that the regulated bodies can guarantee the net worth of qualified insured institutions.
Requirements that a qualifying depository institution be one that is threatened with insolvency, as measured by very low net worth and a recent trend of losses; that the institution be one that mainly serves the residential mortgage industry, as measured by the share of its loans or other assets that are held in or collateralized by residential mortgages or real estate; and that it continue in this service under the net worth guarantee, as measured by the share of its new deposits that it devotes to certain types of mortgages.
Rules for determining the initial amount of the guarantee, and for either extending or phasing out the assistance to a given institution. Extensions after two years are to be contingent upon a showing that “certified continued earnings losses are caused by general market conditions and not by the actions of the institution.”
Creation of a Net Worth Guarantee Account in the US Treasury in the amount of $8.5 billion to cover the payment of any guarantees.
A sunset date for new extensions of guarantees.
An oversight process in which the three bank regulating bodies report quarterly to Congress on their activities in granting guarantees, and the comptroller of the currency provides semiannual audits. [Library of Congress, 5/14/2008; Library of Congress, 5/14/2008]
Fate in the House - The Net Worth Guarantee Act passes the House of Representatives on May 20, 1982, with amendments that extend the coverage to qualifying State-chartered commercial banks, and qualifying national banks whether or not they are members of the FDIC; that add investment in residential housing co-operative stock and mortgages on multifamily rental projects to the qualifying activities for sustaining the guarantee; that alter the exit path from the program; that add compliance with community credit provision requirements under the Community Reinvestment Act of 1977; that make the Treasury senior to holders of existing subordinated debt of any guaranteed bank that later winds up in receivership; and that clearly give the sunset date as September 30, 1984. [Library of Congress, 5/14/2008; Library of Congress, 5/14/2008; Library of Congress, 5/14/2008]
Eventual Fate - With substantial amendments that address other banking regulatory issues besides the net worth of depository institutions, the bill finally passes the Senate under several short titles, of which the primary is “Depository Institutions Amendments of 1982,” superseding S.2879 sponsored by Sen. E.J. “Jake” Garn. The bill is enacted with the signature of President Ronald Reagan on October 15, 1982 as the Garn-St. Germain Depository Institutions Act of 1982. [Library of Congress, 5/14/2008]
A parcel addressed to the head of the Vanderbilt University computer science department, Patrick Fischer, explodes, injuring Fischer’s secretary, Janet Smith. The package was originally sent to Fischer at Pennsylvania State University but was later forwarded to Nashville, Tennessee, where Vanderbilt University is located and where Fischer now teaches. [BBC, 11/12/1987; Washington Post, 1998] Fischer will later describe Smith’s injuries as “nasty lacerations,” and will say, “She made a full recovery, but it was very traumatic for her.” The bomb itself consists of smokeless powder and a large number of match heads. The package has a false return address, stating it comes from LeRoy Bearnson, a professor of electrical engineering at Utah’s Brigham Young University. Bearnson will later say, “I suppose the guy didn’t care which way it went or who got blown up.” FBI agent Oliver “Buck” Revell, who takes part in early phases of the bomb investigation, will later say: “He might pick out an individual, but the person was still a symbolic target to him. I suspect that once he targeted the university research system, it didn’t matter that much who received it. I suspect he felt the country would pick up the symbolism.” The bombing will later be shown to be the work of Theodore “Ted” Kaczynski, the so-called “Unabomber” (see April 3, 1996). When Fischer, along with the rest of the country, learns of Kaczynski’s identity, he will try to find connections between himself and Kaczynski, and come up with only the most tenuous of relationships: Fischer studied at the Massachusetts Institute of Technology (MIT) while Kaczynski studied at nearby Harvard, and Fischer may have shared a Harvard math class with Kaczynski. He also spent time in Salt Lake City, a city with which Kaczynski is familiar. “The agents made it very clear that I was the target,” Fischer will later say. “I still have no idea why, except my feeling is that he chose names at random with certain associations.” [Washington Post, 4/14/1996]
The House Banking Committee approves H.R. 6267, the Net Worth Guarantee Act, by a vote of 25 to 15, with three abstaining. The approval is the first action of Congress to provide direct and specific financial assistance to troubled thrifts, although by a reported estimate in the New York Times, most of the nation’s 4,500 thrift depositories are “losing money” by this time. [New York Times, 5/12/1982, pp. D1, D13] Voting on the bill, which was introduced into the House by Representative and committee chairman Fernand J. St. Germain (D-RI) on May 4 (see May 4-October 15, 1982), is largely partisan: Republican members generally favor an alternative proposal by Rep. Chalmers P. Wylie (R-OH) that differs in qualifying firms at a higher current net worth, and in allowing regulators discretion over this qualification, although debate on the Wylie amendments is short-circuited by a motion to table the amendment made by Rep. Frank Annunzio (D-IL). [New York Times, 5/12/1982, pp. D1, D13] The Wylie provisions form the basis for the bill S.2531 which is introduced into the Senate on May 14, 1982 (see May 14, 1982). [New York Times, 5/12/1982, pp. D1, D13; Library of Congress, 5/19/2008]
The Capital Assistance Act of 1982 is introduced by Sen. E.J. (Jake) Garn (R-UT) and three co-sponsors under the title, “A bill to provide flexibility to the Federal Savings and Loan Insurance Corporation and the Federal Deposit Insurance Corporation to deal with financially distressed institutions.” [Library of Congress, 5/20/2008; Library of Congress, 5/20/2008] The bill provides the following:
Amendments to the National Housing Act and the Federal Deposit Insurance Act so that the Federal Savings and Loan Insurance Corporation (FSLIC) and the Federal Deposit Insurance Corporation (FDIC) may buy capital certificates from institutions that they regulate, for the purpose of either increasing or maintaining the capital of those institutions.
Criteria that qualifying institutions must meet to receive this assistance. The criteria differ from those required by the Net Worth Guarantee Act importantly in requiring a prior net worth of three percent of assets, instead of two percent in the House version.
Parameters of the initial capital certificates, and provision for the subsequent modification of those parameters at the discretion of the FSLIC and FDIC.
Restriction of aid to cases in which this course of action is less costly than liquidation of the institution would be. [Library of Congress, 5/20/2008] The most important difference between the Capital Assistance Act (CAA) and the Net Worth Guarantee Act (NWGA) is that the CAA is meant to avoid the need for a Congressional appropriation of funds. Instead of establishing a Treasury account to be drawn on to fund the assistance, as does the NWGA, the CAA would permit the assisting agencies, FSLIC or FDIC, to give the thrifts promissory notes in exchange for the thrifts capital certificates. [New York Times, 5/15/1982] The Capital Assistance Act of 1982 is evidently the bill that Rep. Wylie promised several days previously would be introduced into the Senate, on the occasion of the approval by the House Banking Committee of the Net Worth Guarantee Act without the amendments that Wylie had offered for that bill. The new bill in the Senate has several features of Wylie’s amendments. [New York Times, 5/12/1982] According to Sen. Garn, Treasury Secretary Donald T. Regan also contributed to the new bill.
Eventual Fate - On August 19, while under consideration in the Senate Banking Committe, the key provisions of S.2531 will be incorporated into S.2879 and passed to the floor of the Senate the next day. Bill S.2879 will be passed by the Senate on September 24, and ultimately incorporated into H.R.6267, the Garn-St Germain Depository Institutions Act of 1982. [Library of Congress, 5/20/2008; Library of Congress, 5/20/2008]
Inslaw enhances its PROMIS software under contract to the Bureau of Justice Statistics, part of the Justice Department. The improvement, known as the “printed inquiry enhancement,” is delivered to the department on May 17, 1982. As the development of the original software and this enhancement is government-funded (see Mid-1970s), Inslaw cannot charge for providing the software to the government solely by virtue of this improvement. However, Inslaw also says it makes privately-funded enhancements at this time, enabling it to charge a fee for a version of the application with these enhancements (see April 2, 1982 and July 17, 1982). [US Congress, 9/10/1992]
The Pentagon’s long-term Defense Guidance plan, which presents “protracted nuclear war” with the Soviet Union as a viable option (see March 1982), is made part of the official Reagan administration policy in the issuance of National Security Decision Directive 32. The directive states, “The modernization of our strategic nuclear forces… shall receive first priority.” It continues, “The United States will enhance its strategic nuclear deterrent by developing a capability to sustain protracted nuclear conflict.” [Air Force Magazine, 3/2008]
Inslaw’s attorney James Rogers writes to the Justice Department in an attempt to allay fears the department has about the implementation of the company’s PROMIS software for it. Rogers provides Associate Deputy Attorney General Stanley E. Morris with a detailed description of what the company plans to do to market the software commercially from the next month, and asks that the department respond to Inslaw to “ensure that these representations are correct.” Rogers says that the version of PROMIS the company will market comprises three parts: (1) the original application developed with government money (see Mid-1970s); (2) enhancements made by Inslaw using private money (see April 2, 1982 and July 17, 1982); and (3) an enhancement made for the Bureau of Justice Statistics (see Before May 17, 1982). Parts (1) and (3) do not entitle Inslaw to market the software commercially themselves. However, part (2) does. At the Justice Department, both C. Madison “Brick” Brewer, who supervises the PROMIS contract, and Peter Videnieks, the department’s contracting officer, are unhappy with this intention. The House Judiciary Committee will comment that this letter is “followed by a very antagonistic meeting” between Brewer and Inslaw representatives, and that Brewer and Videnieks continue “to believe that, because the department was currently funding the implementation of PROMIS, they could ignore Inslaw’s proprietary interest in the privately funded enhancements made to the PROMIS software.” [US Congress, 9/10/1992]
In another speech excoriating communism, President Reagan promises the British Parliament that “the march of freedom and democracy… will leave Marxism-Leninism on the ash-heap of history as it has left other tyrannies which stifle the freedom and muzzle the self-expressionism of the people.” He promises that the “forces of good [will] ultimately rally and triumph over evil,” and says that the West cannot successfully coexist with communist regimes: “Must freedom wither in a quiet, deadening accomodation with totalitarian evil?” [Scoblic, 2008, pp. 116-117]
Photo of crowd during June 12, 1982 anti-nuclear proliferation rally. [Source: Kyoto Journal]Nearly a million people march in New York City to protest the nuclear buildup between the US and the Soviet Union. The rally is reflective of a grassroots “anti-nuke” movement throughout the US and Europe in favor of ending the nuclear arms race. [Scoblic, 2008, pp. 132]
According to investigative journalists Joe and Susan Trento, the arrest of former CIA agent Edwin Wilson, who was involved in business dealings with Libya, has serious consequences for US terrorism policy: “Throughout the 1980s the United States used its intelligence services to divert blame from Iran and Hezbollah onto Libya as part of its entanglement in Iran-Contra with the so-called moderate Iranians with whom the Reagan administration dealt. Ever since international arms dealer Edwin Wilson had been captured and imprisoned in the early 1980s, American intelligence and the White House had labeled Libya a rogue nation, and Libyan dictator Mu’ammar al-Qadhafi a terrorist leader. The intelligence operation went so far that the United States actually recruited a gang of Lebanese criminals to pretend to be a cell of Libyan-backed terrorists conducting violent acts around the world.… These activities, all choreographed by the CIA, were fed to allies such as West Germany as authentic intelligence that implicated Libya for terrorists acts that were either fake or were, in reality, authorized by Iran and carried out by Hezbollah and other surrogate groups.”
Benefit to Iran - This policy apparently benefits Iran: “The Reagan administration had given the Iranians plenty of cards to play. The biggest card was the help it had provided making Libya seem like the ultimate source of all terrorist acts.… When the Reagan administration turned Libya into a vicious terrorist nation operating throughout Europe, that gave Iran the perfect opening for retribution.”
No action against Hezbollah - In addition, it prevents the US from taking action against Hezbollah, even though Hezbollah is killing Americans: “Because of the Iran-Contra scandal—the selling of weapons to Iran to fund the war in Central America—the Reagan administration ended up protecting Iran’s number one terrorist proxy, Hezbollah, while at the same time Hezbollah’s terrorists were killing and kidnapping hundreds of Americans. While secretly working with the Iranian government, the Reagan administration manipulated intelligence to blame Libya for terrorist attacks for which Hezbollah was responsible. During the 1980s Hezbollah killed and terrorized hundreds of Americans in Beirut, bombing the US Marine barracks, blowing up the CIA station, and killing State Department employees in a bomb attack on the US embassy. Hezbollah did all this with the help of local militia leaders whom the United States relied on as its secret conduits to Iran for its sale of weapons.” [Trento and Trento, 2006, pp. xvi, 64-5]
John Brinkeroff, deputy for national preparedness programs at the Federal Emergency Management Agency (FEMA), outlines plans for implementing martial law in the event of a national emergency. In a memorandum later obtained by the Miami Herald, Brinkeroff describes how FEMA and the military would take over the country in the event of a crisis. According to the Herald, the plans include “suspension of the Constitution, turning control of the United States over to FEMA, appointment of military commanders to run state and local governments, and declaration of martial law during a national crisis.” Although the term “national crisis” is not defined, the Herald will later report that it is understood to mean anything from nuclear war to “violent and widespread internal dissent or national opposition against a military invasion abroad.” A source will tell the Herald the contingency plan is authorized by an “executive order or legislative package that [President] Reagan would sign and hold within the NSC [National Security Council] until a severe crisis arose.” This may refer to emergency legislation drafted by the Reagan administration to amend the 1950 Defense Resources Act (see September 25, 1984) and proposed updates to Executive Order 11490 (see August 2, 1984). The Brinkeroff memo resembles a paper written in 1970 by the current head of FEMA, Louis O. Giuffrida, in which he advocated the roundup and transfer of at least 21 million “American Negroes” to “assembly centers or relocation camps” in the event of an emergency (see 1970). [Miami Herald, 7/5/1987]
Neoconservative Richard Perle, the assistant secretary of defense for international security policy, hires fellow neoconservative Douglas Feith as his special counsel. Perle soon promotes Feith to deputy assistant secretary for negotiations policy. Feith’s hire is the latest in a long tradition of neoconservatives such as Perle giving each other influential government positions (see 1973 and 1981). [CounterPunch, 2/28/2004]
In an internal memo, Inslaw employee John Gizarelli outlines a problem concerning the PROMIS project with the Justice Department official handling the contract, C. Madison “Brick” Brewer (see April 14, 1982, April 19, 1982, and Mid-April 1982). Brewer had left Inslaw under a cloud in the mid-1970s (see 1976), but is now overseeing the PROMIS implementation project at the Justice Department. Gizarelli writes to Inslaw vice president Dean Merrill that Brewer “has made no secret of his dislike of [Inslaw president] Bill Hamilton.” He adds: “In his present job, he is in a position to demonstrate his dislike. Bill, however, has kept his distance from the project and probably will continue to do so, until and unless there are large problems which Bill—in his role as president—must deal with personally. It is entirely possible—and I believe likely—that Brick will escalate the level of controversy until he draws Bill into the project, at which time he will be able to ‘lord it over him’ and show who’s boss. I don’t think Brick will ever be at peace with his feelings about Bill and therefore, with us.” [US Congress, 9/10/1992]
An electrical engineering and computer science professor with the University of California at Berkeley, Diogenes Angelakos, picks up what he believes is a turpentine can, left in a common room in the computer science building during construction work. The can, a green, gallon-sized container, has wires dangling from it and a clock-dial attached to the wires. The device is a pipe bomb. It explodes, temporarily blinding Angelakos and severely burning his right hand. [BBC, 11/12/1987; Washington Post, 11/27/1993; Washington Post, 4/14/1996; Washington Post, 1998] The injuries to his hand and arm prevent him from effectively caring for his wife Helen in her final days; she will die a month later of terminal cancer. “I went to her funeral with my arm in a sling,” Angelakos will later recall. [Washington Post, 11/27/1993] The bombing will later be shown to be the work of Theodore “Ted” Kaczynski, the so-called “Unabomber” (see April 3, 1996). Kaczynski once worked as a professor at UC-Berkeley.
President Reagan agrees “in principle” to send a small number of Marines to Lebanon as a peacekeeping force to keep a modicum of order in the ongoing civil war. The Marines will arrive in Lebanon on August 25, and will find themselves in the middle of bloody factional fighting between several Lebanese groups as well as Israeli invasion forces. [PBS, 2000] In October 1983, 241 Marines will die when a suicide bomber attacks their barracks (see April 18-October 23, 1983).
Joyce Demy, an employee of the software company Inslaw, writes to the firm’s lawyer saying that it made enhancements to its PROMIS software worth $1 million between May 1981 and May 1982. She also tells the lawyer, James Rogers of Latham, Watkins & Hills, that no government money was used for the enhancements, which were paid for solely out of private funds. Prior to the enhancements, the original PROMIS software was in the public domain, as it had been paid for by government money (see Mid-1970s). However, the various privately-funded enhancements mean that Inslaw can claim ownership of it. [US Congress, 9/10/1992]
Anti-abortion activists Don Benny Anderson (see May 1982), Matthew Moore, and Wayne Moore kidnap Dr. Hector Zevallos of the Hope Clinic for Women (see January 1982) and his wife. The activists hold the Zevalloses for eight days, during which time they force Zevallos to make an anti-abortion speech that is to be videotaped and sent to President Reagan in support of legislation designed to overturn the Supreme Court’s 1973 Roe v. Wade decision that legalized abortion (see January 22, 1973). Threatened with the murder of himself and his wife, Zevallos agrees. According to government documents, this is the first action of the “Army of God,” a violent anti-abortion group (see 1982, Early 1980s, and July 1988). [Kushner, 2003, pp. 38; Extremist Groups: Information for Students, 1/1/2006] Anderson and Matthew Moore will plead guilty to multiple felonies in regards to the incident; Anderson will tell the court that he has been told by God to “wage war on abortion.” The three will also be convicted of kidnapping Zevallos and his wife. Anderson will receive 30 years for the kidnapping, and 30 additional years for firebombing two Florida abortion clinics. [Extremist Groups: Information for Students, 1/1/2006; National Abortion Federation, 2010]
Associate Deputy Attorney General Stanley Morris writes to James Rogers, an attorney acting for Inslaw, and admits that the company owns privately funded improvements to the PROMIS software. Morris first points out that part of the software was financed by the government: “We agree that the original PROMIS, as defined in your letter of May 26, 1982 (see May 26, 1982), is in the public domain. We also agree that the printed inquiry enhancement is in the public domain.” This means that Inslaw could never charge the department for the use of software comprising only the original application and the printed inquiry enhancement (although it could of course charge for installation and maintenance). However, Morris adds, “To the extent that any other enhancements to the system were privately funded by Inslaw and not specified to be delivered to the Department of Justice under any contract or other arrangement, Inslaw may assert whatever proprietary rights it may have.” This means the department agrees that Inslaw can sell a version of the software with privately-funded enhancements. [US Congress, 9/10/1992] This statement is made in response to a letter sent by lawyers acting for Inslaw founder William Hamilton, informing the department that Inslaw intends to become a private company, and asking it to waive any proprietary rights it might claim to the enhanced version. Clarification will be provided in a 1988 deposition in which Deputy Attorney General Arnold Burns will say, “Our lawyers were satisfied that Inslaw’s lawyers could sustain the claim in court, that we had waived those [proprietary] rights.” [Wired News, 3/1993]
In the second of two rulings in the case of Halkin v Helms, the judiciary comes down squarely on the side of the US government against charges of illegal surveillance and wiretapping leveled against American anti-war protesters. The district and appellate courts uphold the federal government’s “state secrets” claim as codified in US v Reynolds (see March 9, 1953), thereby denying the plaintiffs the right to see government information that they claim would prove their case. The DC Court of Appeals writes that the federal courts do not have any constitutional role as “continuing monitors of the wisdom and soundness of Executive action,” and instead the courts “should accord utmost deference to executive assertions of privilege on grounds of military or diplomatic secrets… courts need only be satisfied that there is a reasonable danger” that military secrets might be exposed. [Siegel, 2008, pp. 196-196]
President Reagan signs classified National Security Decision Directive 55, Enduring National Leadership. The directive authorizes a dramatic expansion of the highly secretive Continuity of Government (COG) procedures, intended to ensure the survival of the federal government in times of extreme national emergency. NSDD-55 will spawn a new wave of ultra-secretive programs and policies aimed at protecting the federal government during disasters, particularly in cases of prolonged nuclear war. A clandestine branch of the Federal Emergency Management Agency (FEMA), known as the National Preparedness Directorate, will oversee many of the revamped COG programs. President Reagan’s directive substantially boosts spending for “government preparedness” within FEMA, from $21.9 million to $131 million a year. Spending for civil defense within FEMA is increased as well. Also around this time, a highly clandestine agency, the National Program Office (NPO), is established by way of a top-secret presidential directive (see (1982 -1991)). It is unclear, however, if this directive is NSDD-55, which is classified and never made public. NSDD-55 will be briefly mentioned years later in media reports, but details of its contents will remain unknown. Some information regarding the document’s background will be confused in the press. Cox News Service will mistakenly identify the order as National Security Directive 58, while the New York Times will report it was signed in January 1983. Records gathered by the Federation of American Scientists will date the directive September 14, 1982. [CNN Special Assignment, 11/17/1991; Cox News Service, 2/22/1993; New York Times, 4/18/1994; Federation of American Scientists, 6/9/2009]
According to a State Department report, “Unspecified foreign officers [fire] lethal chemical weapons at the orders of Saddam [Hussein] during battles [against Iranian forces] in the Mandali area.” [US Department of State, 11/1/1983 ]
President Reagan and Dartmouth Review editor Dinesh D’Souza, 1988. [Source: Exiled Online (.com)]The Dartmouth Review, a conservative weekly student newspaper funded by off-campus right-wing sources (see 1980), publishes a satirical piece called “Grin and Beirut,” that compares an Israeli settlement in West Beirut to a temporary structure just erected by Jewish students at Dartmouth to celebrate the harvest and saying it was built on “the West Bank of College Hall.” The structure, known as a sukkah, is where the students gather for meals during the eight-day Succoth holiday. “The Zionists have gone too far with the erection of a ceremonial ‘sukkah’ settlement on the West Bank of College Hall,” the Review writes. Two days later, unidentified vandals destroy the structure. Many Dartmouth students and faculty members believe the Review’s apparent anti-Semitism incited the vandalism, including a rabbi with the university. Even the conservative Manchester Union-Leader, one of New Hampshire’s staunchest press supporters of the Review, criticizes the Review for its writings. One of the article’s co-authors says he regrets writing the piece, and the Review publishes an apology saying that it is “committed to fighting not only vandalism but also the psychological bigotry that can precipitate it.” [Boston Globe, 10/5/1990; Dartmouth Free Press, 9/20/2006] In 2006, the Dartmouth Free Press will write that Review staffers may have destroyed the sukkah. The reporter will note that any contrition or commitment to “fighting vandalism [and] psychological bigotry” was not in evidence in later years, when Review staffers used sledgehammers to destroy shanties built by students as part of protests against apartheid in South Africa. [Dartmouth Free Press, 9/20/2006] The Review is currently edited by Dinesh D’Souza, who will go on to become a policy adviser in the Reagan administration and a prominent conservative speaker and pundit. [Know Your Right-Wing Speakers: Dinesh D'Souza, 2/25/2005]
As part of the US-European anti-nuclear peace movement (see June 12, 1982), a referendum calling for the immediate halt of nuclear weapons deployments appears on the ballot in 10 states, 37 cities and counties, and the District of Columbia. It passes almost everywhere. By the end of 1982, polls show that 85 percent of Americans support the nuclear freeze movement. [Scoblic, 2008, pp. 132-133]
In November 1982, US Representative Charlie Wilson (D-TX) travels to Islamabad, Pakistan, and meets with President Muhammad Zia ul-Haq. He promises Zia to deliver a crucial weapons system that has so far been denied by the US—the latest radar systems for Pakistan’s F-16 fighter planes. Wilson also meets with CIA Station Chief Howard Hart, who is in charge of providing support for the Afghan resistance to the Soviets. He urges Hart to expand the program and stresses that vast amounts of money can be made available. [Crile, 2003, pp. 106-129] The next month, President Zia comes to the US to meet with President Reagan. Zia first meets with Wilson in Houston and expresses his gratitude for helping Pakistan acquire F-16 radar systems (see November-December 1982). Wilson then broaches the subject of Pakistan secretly purchasing arms from Israel for the Afghan War. Zia agrees to this in principle. [Crile, 2003, pp. 131-132]
The Port Authority of New York and New Jersey holds a drill at the World Trade Center based on the scenario of a plane crashing into one of the Twin Towers. Numerous agencies participate in the drill, which is held on a Sunday. As well as the Port Authority, these include the New York City Fire Department, the New York City Police Department, and the Emergency Medical Services. Guy Tozzoli, the director of the Port Authority’s World Trade Department, will describe the drill during a legislative hearing in 1993 (see (March 29, 1993)). He will recall that the Port Authority simulates the “total disaster” of “the airplane hitting the building” and participants simulate “blood coming out of people.” He will add that the drill is “a real preparation for a disaster.” [Newsday, 11/12/2001; Dwyer and Flynn, 2005, pp. 58-59] (During the hearing, Tozzoli will mistakenly recall the drill being conducted in the late 1970s, but it is in fact held in November 1982. [Dwyer and Flynn, 2005, pp. 274] ) The drill follows an incident in 1981, when an Argentine aircraft came within 90 seconds of crashing into the WTC’s North Tower as a result of having problems communicating with air traffic controllers (see February 20, 1981). Asked about the drill shortly after 9/11, Tozzoli will say it was held “just to have people trained within the city for that particular scenario [of a plane hitting the WTC].” The 1982 exercise appears to be the last “joint drill involving all the emergency responders” held at the WTC prior to the 9/11 attacks, 19 years later, according to New York Times reporters Jim Dwyer and Kevin Flynn. [Newsday, 11/12/2001; Dwyer and Flynn, 2005, pp. 59]
Peter Videnieks, the Justice Department’s contracting officer, writes to Inslaw and says that it is in default of a clause in a contract between it and the government on the installation of PROMIS software. The clause concerns advance payments made by the department, which Inslaw needs to receive for its work under the contract in order to keep on operating as a business. Due to Inslaw’s poor financial situation, the House Judiciary Committee will comment that withholding the advance payments would have a “devastating impact” on the company, and Videnieks will later say he was aware of this, stating, “I think I was advised at the same time that Inslaw may indeed have difficulty in meeting the December payroll, and I think in general I was advised that they were in bad financial condition.” Due to its lack of cash, Inslaw had assigned rights to the advance payments to a financial institution to secure a line of credit. Justice Department PROMIS project manager C. Madison “Brick” Brewer will say that the reason the department is considering terminating the advance payments is a loan Inslaw has from the Bank of Bethesda, under which a lien was placed on the advance payments received by Inslaw from a specific account (not the account itself). According to Brewer, the lien is contrary to the contract and places the government in financial risk. [US Congress, 9/10/1992]
A technical representative for the Justice Department formally asks Inslaw for a copy of the PROMIS software currently being used by US attorneys’ offices. The department will later say that this request is motivated by concern over the financial viability of Inslaw, although the company is in financial difficulty because the government is withholding advance payments it owes (see November 10, 1982). At this time, the department has not yet obtained the minicomputer hardware for each attorney’s office and Inslaw has arranged for the largest US attorneys’ offices to use PROMIS on a time-sharing basis. [US Congress, 9/10/1992]
The first of three so-called “Boland amendments” becomes law. Named for Representative Edward Boland (D-MA), the chairman of the House Intelligence Committee, the amendment is part of a larger appropriations bill. The amendment restricts US humanitarian aid to the Contras, and prohibits the use of US funds “for the purpose of overthrowing the government of Nicaragua.” The Reagan administration gets around the amendment by saying that its actions in support of the Contras are merely designed to force the Sandinistas to come to a peace agreement with the Contras, not to bring down the Nicaraguan government. [House Intelligence Committee, 2005; Savage, 2007, pp. 53]
Peter Videnieks, the Justice Department’s contracting officer, writes to Inslaw to demand that it turn over all computer programs and supporting documentation relating to a contract to install PROMIS software for the department (see March 1982). In response, Inslaw says it will not do this without the department modifying the contract between them to acknowledge that it has inserted privately-funded enhancements into a public domain version developed for the department. This modification is apparently required because the department is using a time-share version of the application in advance of full installation, and Inslaw’s other timesharing customers also use a version with the enhancements. The department then says that the original contract called for software in which the government has unlimited rights, and asks Inslaw to identify the parts of the software it claims are proprietary. Inslaw offers to provide the enhanced software to the 94 attorneys’ offices covered by the contract at no extra charge, provided the department agrees to Inslaw’s rights and does not disseminate the software beyond these offices. However, Videnieks will later tell investigators for the House Judiciary Committee that the department believed that it had unlimited rights to any versions of PROMIS, and if restrictions were placed on data rights, then this would not satisfy Inslaw’s obligation under the contract. [US Congress, 9/10/1992]
The Justice Department’s PROMIS project manager, C. Madison “Brick” Brewer, writes a memo about potential developments in the project. In the memo, he says he is concerned about the possibility Inslaw, the company that is implementing the PROMIS software, may go bankrupt, and that staff at the Executive Office for US Attorneys may need to take over the project. Brewer also mentions the possibility that the contract with Inslaw could be terminated by the department. Inslaw will enter bankruptcy in 1985, at least partially as a result of the department withholding payments from it (see February 1985). [US Congress, 9/10/1992]
Disgusted with the Reagan administration’s failure to make even the most basic progress in the START arms negotiations with the Soviet Union (see May 1982 and After), and viewing the administration’s position as not only untenable but dangerous, Congress steps in and threatens to withhold funding for the MX missile (see 1981) if something is not done. In return, President Reagan appoints a blue-ribbon panel to study the negotiations and recommend alternatives (see January 1983-April 1983). [Scoblic, 2008, pp. 124]
Air Force General David Jones, chairman of the Joint Chiefs of Staff, says that the idea of winning a protracted nuclear war, as espoused by the Pentagon (see March 1982), is not tenable. “I don’t see much of a chance of nuclear war being limited or protracted,” he says. “I see great difficulty in keeping any kind of exchange between the US and the Soviets from escalating.” He adds: “If you try to do everything to fight a protracted nuclear war, then you end up with the potential of a bottomless pit.… We can’t do everything. I personally would not spend a lot of money on a protracted nuclear war.” [Air Force Magazine, 3/2008]
Abdus Salam, a member of the nuclear equipment purchasing ring run by Pakistani scientist A. Q. Khan, sets up a business named International Reliance in Florida. The name is similar to a British-based business, Source Reliance International (a.k.a. SR International), in which Salam has been a partner and which has been active in the nuclear ring (see Summer 1976). Around the same time, Salam also establishes a number of other US businesses, including three import-export firms, two trading companies, two communications outfits, a computer retailer, two hospitality companies, a financial services enterprise, and several companies involved in indeterminate business. It is unclear if Salam is living in the US at this time or arrives some time the following year. Before coming to the US, he resided in Britain and then the United Arab Emirates, but leaves there around this time, apparently due to a business dispute (see 1982-1983). Authors Joe Trento and David Armstrong will write that given Salam’s involvement in proliferation activities in Britain and Dubai, “it seems reasonable to assume that the US authorities would have kept tabs on him once he arrived.” However, no information about any surveillance of or cooperation with Salam on the part of US authorities is definitively known. [Armstrong and Trento, 2007, pp. 114]
Jordan, Saudi Arabia, Kuwait, and Egypt supply Iraq with US howitzers, helicopters, bombs, and other weapons with the secret approval of the Reagan administration. [New Yorker, 11/2/1992; Phythian, 1997, pp. 35] Italy also funnels arms to Iraq at the insistence of President Reagan who personally made the request to Prime Minister Guilio Andreotti. [Friedman, 1993, pp. 51-54; Phythian, 1997, pp. 36]
The Reagan administration approves the sale of 60 civilian Hughes helicopters to Iraq, even though it is widely understood that the helicopters can be weaponized with little effort. Critics will regard the sale as military aid cloaked as civilian assistance. [Phythian, 1997, pp. 37-38]
The US State Department reports that Iraq’s support for anti-Western militant groups continues unabated. [Jentleson, 1994]
Secretary of Commerce Howard Baldridge and Secretary of State George Shultz successfully lobby the National Security Council (NSC) adviser to approve the sale of 10 Bell helicopters to Iraq in spite of objections from other NSC members. It is claimed that the helicopters will be used for crop spraying. These same helicopters are later used in 1988 to deploy poison gas against Iranians and possibly Iraqi Kurds (see March 1988). [Washington Post, 3/11/1991; Phythian, 1997, pp. 37-38]
Iranian diplomats bring photographs to the United Nations and several national capitals showing the swollen, blistered and burned bodies of injured and dead Iranians who have been victims of Iraqi chemical attacks. [New York Times, 2/13/2003]
A. Q. Khan (center of picture) at a test. [Source: CBC] (click image to enlarge)Pakistan carries out a successful test of a nuclear bomb minus the fissionable core, an exercise known as a “cold test.” Pakistan is receiving Chinese help with its nuclear program at this time, and the Chinese may assist with the test. The US learns that the test has been carried out around this time. [Armstrong and Trento, 2007, pp. 120-1; Guardian, 10/13/2007]
Neoconservative academic Michael Ledeen is brought into the Defense Department as a consultant on terrorism, via the auspices of Assistant Secretary of Defense Richard Perle, a fellow neoconservative. Ledeen’s supervisor, Noel Koch, is troubled by Ledeen’s frequent visits to his office to read classified documents. When Koch and Ledeen journey to Italy on Pentagon business, Koch learns that Ledeen is considered an “agent of influence” for a foreign government: Israel. After returning from Italy, Ledeen asks Koch to help him obtain two highly classified CIA reports which he says are being held by the FBI. Ledeen gives Koch the reports’ “alpha numeric designators”—numbers as highly classified as the reports themselves. Koch is at a loss to understand how Ledeen obtained such information. Koch tells his executive assistant to stop allowing Ledeen to access the classified materials in his office. In return, Ledeen stops coming to work. [CounterPunch, 2/28/2004] Shortly thereafter, Ledeen will begin “consulting work” for the National Security Council (see Late 1984).
As part of the resurgence of the Cold War promulgated by the Reagan administration, Representative Dick Cheney (R-WY), an obstinate enemy of the Soviet union and a relentless advocate of an expanded US nuclear arsenal (see 1981), is part of a delegation sent by Reagan officials to Moscow as part of the reopened arms negotiations between the two countries (see May 1982 and After). It is not Cheney’s first “codel,” or Congressional delegation, but this particular trip is memorable, and not just because it is the first time a House delegation has visited the Soviet Union since 1979.
No Negotiations on Arms - Cheney, the ranking Republican on the trip, meets with Soviet marshal Sergei Akhromeyev, the deputy chief of the Soviet general staff. The meeting is also attended by Cheney’s House colleague, Thomas Downey (D-NY). Akhromeyev astonishes Downey by proposing that the Soviets would consider reopening discussion of mutual weapons cuts in Europe, and accept a one-year testing ban on testing its new SS24 ballistic missile, if the US would ban testing the MX. Downey is elated. In his mind, the proposal is clear evidence of a thaw in US-Soviet relations, and a signal that the Soviets want to move forward with strategic arms talks. Akhromeyev says, according to Downey, “If such a proposal is put forth, it would be considered at the negotiations” between the two governments’ most senior negotiators. But Cheney refuses to listen. “Cheney did not want to allow the Russians to appear in any way reasonable,” Downey later recalls. “He doesn’t believe in negotiations. He’s completely rigid, states his position, and concedes nothing. There could be no negotiations when his position was: It’s my way or the highway.” Cheney later denies that Akhromeyev even made such an offer. Downey, who considers Cheney a friend even though they disagree on virtually everything, recalls saying after the meeting: “I said, ‘You can’t expect them to accept all our terms? You can’t expect them to surrender?’ He said, ‘Yeah, yes I can.’”
'Standing at Ground Zero' - Downey recalls one chilling Moscow moment with Cheney. The two are strolling in Red Square one evening. Downey later recalls: “It was a spectacular night and we walked over to Red Square. There were just the two of us and I asked him what he was thinking. He said, ‘I think we’re standing at Ground Zero.’” [Dubose and Bernstein, 2006, pp. 52-53]
Representative Charlie Wilson (D-TX) travels to Israel where he meets with Zvi Rafiah and other Israeli officials. From Israel he travels to Egypt and then Pakistan, where he secretly negotiates a major weapons deal with Pakistan (see November-December 1982) on behalf of the Israelis in support of the mujaheddin fighting Soviets in Afghanistan. Among other things, the deal includes the delivery of T-55 tanks. Author George Crile will later comment, “The Israelis were hoping this deal would serve as the beginning of a range of under-the-table understandings with Pakistan that the congressman would continue to quietly negotiate for them.” [Crile, 2003, pp. 141]
A Texas sheriff and three of his deputies are charged with violating the civil rights of several prisoners in their custody. According to the complaint, the four conspired to “subject prisoners to a suffocating water torture ordeal in order to coerce confessions. This generally included the placement of a towel over the nose and mouth of the prisoner and the pouring of water in the towel until the prisoner began to move, jerk, or otherwise indicate that he was suffocating and/or drowning.” The procedure will later become known as “waterboarding.” All four are convicted, and the sheriff is sentenced to 10 years in prison. [Washington Post, 11/4/2007]
The Dartmouth Review, a conservative weekly student newspaper funded by off-campus right-wing sources (see 1980), publishes an article about African-American professor William Cole titled “Bill Cole’s Song and Dance.” The article calls Cole incompetent, and says, referring to his hair, that he looks like a “used Brillo pad.” [Dartmouth Free Press, 9/20/2006]
Seven members of the anti-Semitic, anti-government organization Posse Comitatus (see 1969 and February 13, 1983 and After) are arrested. They are part of a scheme to assassinate two federal judges and to blow up the IRS headquarters in Denver, Colorado. [Nicole Nichols, 2003]
Christian Identity (see 1960s and After) preacher and Posse Comitatus (see 1969) leader James Wickstrom (see 1975 - 1978) is charged with two counts of impersonating a public official. Wickstrom had named himself chief judge and municipal clerk of the “Tigerton Dells Township,” a Posse compound on the banks of the Embarrass River (see 1978 - 1983). Though Wickstrom defends himself as a “sovereign citizen” who is not obligated to obey the laws of the federal, state, and local government, prosecutor Douglas Haag counters: “[T]he question is whether or not a man with even marginal intelligence who can read and write the English language believes that he can put a fence around his back yard, set up a separate government, and call himself a public official.… [I]f [Wickstrom] has a sincere belief that he is a public officer within the laws of the state of Wisconsin, I’m the Easter Bunny.” Wickstrom is convicted and sentenced to the maximum of 13 and one-half months in jail. He will be released in 1985 and forbidden from any contact with Posse Comitatus activities for two years afterwards. [Southern Poverty Law Center, 12/2004] Wickstrom is also charged with running an illegal guerrilla training camp (see 1984). The Tigerton Dells debacle has a negative effect on the Posse Comitatus (see 1984).
CSA members outside their Arkansas compound. Some CSA members also belong to the Elohim City community. [Source: GifS (.com)]Three white supremacists living in the Elohim City, Oklahoma, compound (see 1973 and After) visit Oklahoma City and make plans to blow up the Murrah Federal Building there. The three are: James Ellison, the leader of the Covenant, Sword, and Arm of the Lord (CSA) who will be arrested in 1985 after a four-day standoff with federal authorities; Kerry Noble; and Richard Wayne Snell, who will be executed for murdering a black police officer and a businessman he erroneously believed to be Jewish (see 9:00 p.m. April 19, 1995). All three men have close ties to the neo-Nazi Aryan Nations (see Early 1970s). The evidence of their plan is released during the investigation of the 1995 Oklahoma City bombing (see 8:35 a.m. - 9:02 a.m. April 19, 1995), and is collated by former US prosecutor Steven N. Snyder, who once worked out of the Fort Smith, Arkansas District Attorney’s office. The plan involves parking a van or trailer in front of the building and exploding it with rockets detonated by a timer. Snyder will come across the information on the bombing plot while preparing for the trial of a sedition case against a 14-man group of white supremacists, 10 of whom are charged with planning to overthrow the government. (All 14 will be acquitted in a 1988 trial—see Late 1987 - April 8, 1998.) Snyder will get the information from Ellison, who provides information to him as part of his role as chief witness for the prosecution. The other defendants in the trial, many of whom are believed to have had some connection to the bombing plot, will be Richard Butler, the head of Aryan Nations; Robert E. Miles, a former Klansman who heads the Mountain Church of Jesus Christ the Saviour in Cohoctah, Michigan; and Louis R. Beam Jr., a former grand dragon of the Texas Ku Klux Klan and “ambassador at large” of the Aryan Nations. Ellison will tell Snyder that in July 1983, he attends a meeting of extremist groups in Hayden Lake, Idaho, the location of the Aryan Nations headquarters, where he informs them of the death of fellow white supremacist Gordon Kahl in a gun battle with law enforcement agents in Arkansas (see March 13 - June 3, 1983). Snyder’s notes of Ellison’s statement read, “Kahl was the catalyst that made everyone come forth and change the organizations from thinkers to doers.” According to Ellison, the leaders of the various supremacist groups discuss how to overthrow the federal government, using as a sourcebook the novel The Turner Diaries (see 1978), which tells of a successful move by white supremacists to overthrow the government and then commit genocide against Jews and blacks. Ellison will tell Snyder that he volunteers to assassinate federal officials in Arkansas as part of the plot. The leaders discuss blowing up the Murrah Building in Oklahoma City, other federal buildings, and the Dallas office of a Jewish organization. According to Ellison’s trial testimony, in October 1983 Snell and another participant, Steve Scott, “asked me to design a rocket launcher that could be used to destroy these buildings from a distance.” Of Snell, Ellison will testify: “On one of the trips when I was with Wayne, he took me to some of the buildings and asked me to go in the building and check the building out. This kind of thing.” Ellison will tell Snyder that at Snell’s request, he surveills the Murrah Building to assess what it would take to damage and destroy it. He makes preliminary sketches and drawings. According to the preliminary plans, rocket launchers are to be “placed in a trailer or a van so that it could be driven up to a given spot, parked there, and a timed detonating device could be triggered so that the driver could walk away and leave the vehicle set in position, and he would have time to clear the area before any of the rockets launched.… And I was asked to make it so it would fit in either a trailer or a van or a panel truck.” Synder will later say that Snell is embittered towards the government because of the IRS, which took him to court and seized property from him for failure to pay taxes. But, Snyder will add, “you can’t be sure about any of this, because a federal raid, to a lot of these people, is any time the postman brings the mail.” Ellison will be taken into custody after a four-day standoff with state and federal authorities in 1985, only convinced to surrender after white supremacist Robert Millar talks him into giving up (see 1973 and After). Ellison will be convicted of racketeering charges and sentenced to 20 years in prison. He will enter the federal witness protection program until completing his parole and leaving the program on April 21, 1995, two days after the Oklahoma City bombing. [New York Times, 5/20/1995; Anti-Defamation League, 8/9/2002; Nicole Nichols, 2003]
Entity Tags: Louis R. Beam, Jr, James Ellison, Gordon Kahl, Elohim City, Covenant, Sword, and Arm of the Lord, Aryan Nations, Kerry Noble, Murrah Federal Building, Richard Girnt Butler, Robert Millar, Steve Scott, Steven N. Snyder, Richard Wayne Snell, Robert E. Miles
Timeline Tags: US Domestic Terrorism
Solar Design Associates builds and operates a free-standing solar-powered home in New York’s Hudson River Valley. [US Department of Energy, 2002 ]
A new six-megawatt solar electricity substation in central California, operated by ARCO Solar, generates enough power for Pacific Gas and Electric (PG&E) to power up to 2,500 homes. [US Department of Energy, 2002 ]
The US places a high-tech piece of surveillance equipment near Pakistan’s nuclear weapons facility in Kahuta. The device is a boulder made from resin that is moulded and coloured to look like the local rocks. It is transported in on the back of a delivery truck and can transmit intelligence through an array of sophisticated recording and air-sampling technology hidden inside the shell. However, according to Pakistani General Khalid Arif, the device is discovered by chance. A student travelling on the back of another truck falls off and hits his head on the rock. Arif will say: “He opened his eyes and realized that he was still alive and unbruised. The rock, however, had a hole in it and inside were all sorts of whirring and blinking bits. We took it away for analysis and later put it into our museum for trainee spies.” [Levy and Scott-Clark, 2007, pp. 92-93]
An undated photo of LeRoy Schweitzer. [Source: WorldNews]LeRoy Schweitzer, a crop duster in Montana and Idaho, becomes increasingly frustrated and resentful at what he considers interference by the government. Beginning in the mid-1980s, Schweitzer moves toward becoming an anti-government tax resister. He becomes fascinated by the legal ideology of the Posse Comitatus (see 1969), attends numerous Posse meetings, and has some contacts with members of The Order (see Late September 1983). Schweitzer, well-liked by his neighbors and friends, begins to worry them with his increasing extremism. He helps a friend, Bernard Kuennan, mount a legal defense against charges of letting his dog roam unvaccinated, and the two hammer the judge with questions about the differences between “admiralty” and “common law” (see Fall 2010). He defies police officers who stop him for traffic violations. He moves to Montana, where he refuses to get a license to fly his Cessna crop duster, resulting in federal arrest warrants. His refusal to pay federal taxes causes the IRS to seize his plane in November 1992, his Bozeman, Montana home, and other equipment, and sell it all to pay his $389,000 delinquent tax bill, dating back to the 1970s. Thoroughly radicalized, Schweitzer meets Rodney Owen Skurdal, another legal manipulator. Skurdal is an ex-Marine and Posse Comitatus advocate who, during litigation of a worker’s compensation suit in the 1980s, tells the judge that the federal government lacks the authority to print paper money and demands, fruitlessly, to be paid his compensation in gold bullion. One Wyoming newspaper claims that Skurdal’s extremism begins after he suffers a fractured skull in 1983, the source of the compensation claim; Skurdal’s former wife says after the injury that Skurdal refuses to use a Social Security number or driver’s license. Skurdal, like many in the Posse, is an adherent to the virulently racist Christian Identity belief system (see 1960s and After), and in court filings claims non-whites are “beasts,” and Jews “the children of Satan.” Skurdal routinely intertwines Identity, Posse Comitatus, Biblical, and Uniform Commercial Code (UCC) tenets in his court filings (see 1994). In 1993, the IRS seizes his farm near Roundup, Montana, for back taxes; Skurdal continues to occupy the farm and no local official dares to evict him. In late 1994, Skurdal invites Schweitzer to move in with him; they are joined by Daniel Petersen in early 1995. The three become the nucleus of what will become the Montana Freemen. Skurdal’s farm becomes a headquarters for the nascent organization, with computers, fax machines, laser printers, and satellite dishes going round the clock. The inhabitants post a sign on the edge of the property, reading: “Do Not Enter Private Land of the Sovereign.… The right of Personal Liberty is one of the fundamental rights guaranteed to every citizen, and any unlawful interference with it may be resisted.” Local authorities want to curb the group, but do not want to risk violence and bloodshed. Musselshell County Sheriff G. Paul Smith says: “These people want to be martyrs. I don’t know how far they are willing to carry that.” Moreover, Smith and his small sheriff’s department are outnammed and outgunned. [Mark Pitcavage, 5/6/1996]
After being recruited by Abdullah Azzam, an Arab Afghan leader and Osama bin Laden’s mentor, Essam al Ridi travels to Pakistan to join the mujaheddin fight against the Soviets in Afghanistan. He works for the mujaheddin for about 18 months, mostly as a purchaser of equipment abroad. He buys two sets of scuba diving equipment and six range finders in Britain, as well as night vision goggles and six night vision scopes from the US. He also purchases video equipment and batteries, and acquires equipment in Japan, Kuwait, and Saudi Arabia. Al Ridi will later say, as a witness in a US trial, that he travels “extensively almost every 15 days to 20 days” and that he has so many stamps his passport is nearly full by 1985. Al Ridi leaves Asia to return to the US in late 1984 or early 1985, apparently due to an argument about Osama bin Laden’s role in the jihad, but he will continue to send equipment to the mujaheddin. For example, he will later purchase assassination rifles for the jihad, apparently with the CIA’s knowledge, but it is unclear whether the CIA knows about these earlier transactions (see Early 1989). [United States District Court for the Southern District of New York, 1/14/2001]
President Reagan’s blue-ribbon panel to examine the failure of the US-Soviet START arms negotiations (see May 1982 and After and Late 1982) finds that the Reagan administration’s recalcitrance, obduracy, and downright insulting behavior towards the Soviet negotiators is the primary reason why the negotiations have made no progress. The panel, headed by foreign policy “pragmatists” such as President Nixon’s Secretary of State and National Security Adviser Henry Kissinger, President Ford’s Secretary of Defense James Schlesinger, President Carter’s Secretary of Defense Harold Brown, and Nixon security and defense aide Brent Scowcroft, calls for a revamped approach to the arms control negotiations. [Scoblic, 2008, pp. 124-125] The panel’s recommendations will be ignored (see April 1983-December 1983).
One of five secret, underground ‘control rooms’ built by East German intelligence to help coordinate a Soviet counterattack against a US first strike. [Source: Central Intelligence Agency]By the beginning of 1983, the world seems closer to a nuclear holocaust than it has since the 1962 Cuban Missile Crisis. The idea of detente between the US and the Soviet Union has been all but abandoned, and European allies of the US use the term “Cold War II” to describe the new, chilly relations between the two superpowers. French President Francois Mitterrand compares the situation to the 1962 Cuban crisis and the 1948 confrontation over Berlin. American Cold War expert George Kennen says that the confrontation has the “familiar characteristics, the unfailing characteristics, of a march toward war—that and nothing else.” While there is little confrontation between the two in a military sense, the tensions are largely manifested in the rhetoric of the two sides, with President Reagan calling the USSR an “evil empire” (see March 8, 1983) and declaring that American democracy will leave Soviet communism on “the ash-heap of history” (see June 8, 1982). In return, Soviet General Secretary Yuri Andropov calls Reagan “insane” and “a liar.” The Soviet propaganda machine releases a storm of invective against Reagan and the US in general, comparing Reagan to Adolf Hitler and America to Nazi Germany. CIA analyst Benjamin Fischer will later write, “Such hyperbole was more a consequence than a cause of tension, but it masked real fears” (see May 1981). The Soviets are particularly worried about the US’s intermediate-range ballistic missiles (IRBMs), the Pershing IIs, to be deployed throughout Europe (see September 1981 through November 1983), as well as the Americans’ new cruise missiles, the Tomahawks. Once those missiles are in place, the US, if it so desired, could destroy most of the Soviets’ own ballistic missile sites with only four to six minutes’ warning. The Soviets’ own plans for pre-emptive strikes against the US have the destruction of the European Pershing and Tomahawk emplacements as a top priority. [Fischer, 3/19/2007]
Abdus Salam, a member of the nuclear proliferation ring run by Pakistani scientist A. Q. Khan (see Summer 1976 and Before September 1980), has multiple dealings with the Bank of Credit and Commerce International (BCCI) while residing in the US.
"No Payments" - Julio Bagiardi, one of Salam’s partners in a chain of retail stores, will say: “All he wanted to do was make a lot of deposits at the same bank. He insisted on keeping [all his deposits] at BCCI.” Salam is also “very forceful” in persuading Bagiardi and the other partners to do the same. If they do so, according to Salam, they will have access to “unlimited” cash and, if they make daily deposits, “it would never be a problem if we needed to get money.” In addition, “they [would] never have to pay nothing back,” as there would be “no payments.” Bagiadri will add that Salam “knew somebody” at the bank. David Reed, another partner in the retail stores, will confirm Salam had an account with the bank.
Unusually Generous Overdraft Loan - One transaction is the granting in 1989 of an overdraft, arranged with support from the branch in Park Lane, London. That branch’s manager recommends that its Tampa branch make a loan to Salam, but instead it grants him a “virtually unsecured” $120,000 overdraft line. The overdrafts are usually for customers with substantial account balances, so it is unclear why one is given to Salam, whose balance is “very skimpy,” according to sources for authors David Armstrong and Joe Trento. The line is later moved to one of Salam’s companies, Centaur Impex, backed only by a personal guarantee from Salam and Centaur’s assets. By this time BCCI is in serious trouble and the line is transferred to the Miami branch, which sues Salam for non-payment of the balance, around $50,000. Armstong and Trento’s sources will say that the fact that Salam “had the influence to obtain such a loan without any meaningful collateral” is “very curious,” adding that it “suggests that he may have had influence among highly placed people within BCCI and/or Pakistan.”
"No Recollection" of Salam - When Armstrong and Trento investigate the relationship between Salam and BCCI for a 2007 book, they will have difficulty obtaining information. The court has destroyed records, the lawyers say they have too, BCCI’s liquidators are unable to provide any information, prosecutors and investigators involved in proceedings against BCCI say they knew nothing about Salam, and the various officials of the bank where Salam deposited his money every day for years “either would not return phone calls, denied knowing who Salam was, or claimed that, while the name did ‘ring a bell,’ they could recall no specifics about their former client.” [Armstrong and Trento, 2007, pp. 108-111]
The US sells forty F-16 fighter jets to Pakistan. One of the contractual preconditions of the sale is that Pakistan does not configure them to drop a nuclear bomb. However, US analyst Richard Barlow will conclude that in fact all of them are configured to carry nuclear weapons. [Guardian, 10/13/2007]
National Security Decision Directive 75 is signed into law by President Reagan. It further embeds the idea that a “protracted nuclear war” can be won (see March 1982), saying in part that Soviet calculations about war must always see “outcomes so unfavorable to the USSR that there would be no incentive for Soviet leaders to initiate an attack.” [Air Force Magazine, 3/2008] NSDD 75 stipulates that the US must “contain and over time reverse Soviet expansionism” and “promote, within the narrow limits available to us, the process of change in the Soviet Union toward a more pluralistic political and economic system.” Conservatives and hardliners will later interpret Reagan’s words as indicating the US would actively engage in “rollback” of the USSR’s control over other nations. [Scoblic, 2008, pp. 145-146]
Gordon Kahl. [Source: Anti-Defamation League]Posse Comitatus (see 1969 and 1983) member and anti-tax protester Gordon Kahl (see 1967 - 1973) and three Posse members gun down two US marshals who are attempting to arrest Kahl in a confrontation near Medina, North Dakota. The two marshals are among a group of six attempting to apprehend Kahl in a 1977 income tax case after he violated his probation by refusing to file a tax return (see 1975 - 1981); he has been a fugitive since 1981.
Initial Attempts to Negotiate Peaceful Surrender Fail - In that year, Kahl refused to turn himself over to North Dakota federal marshal Harold “Bud” Warren after a number of telephone conversations in which Kahl insisted that he had been “illegally” convicted by the “forces of Satan.” Warren decided that Kahl’s probation violation was “hardly a serious crime” and decided not to pursue it, partially because he knew Kahl was a crack shot and feared he would lose officers in any attempt to arrest him.
Increasing Involvement in Posse Activities - Kahl moved to Arkansas, where he visited the compound of the white supremacist Covenant, Sword, and Arm of the Lord organization. A member of that organization, Leonard Ginter, hid Kahl from federal authorities. Kahl’s wife, under tremendous stress from the situation, tried and failed to negotiate a settlement with the IRS, resulting in her excoriation by her 23-year-old son Yorie, who accused her of cooperating with “the tithing collectors of the Jewish-Masonic Synogogue [sic] of Satan.” Kahl became more and more involved in Posse Comitatus activities, traveling to Kansas and Colorado.
Return to North Dakota, Confrontation with Police - In January 1983 he and Yorie Kahl returned to North Dakota with the intention of setting up a Posse “township” near Medina, which they envisioned as being free from state and government control. Kahl’s station wagon is observed by Stutsman County deputy sheriff Bradley Kapp, who informs the Marshal Service in Bismarck. Warren’s successor, Kenneth Muir, authorizes Kahl’s arrest, and drives to Medina with Deputy Marshal Carl Wigglesworth to join two other deputy marshals, Robert Cheshire Jr. and James Hopson Jr. Kapp is spotted by some of his Posse colleagues, who quickly join him in planning to forcibly resist any arrest attempt. Reportedly, they receive the assistance of Medina police chief Darrell Graf, who is allegedly a Posse sympathizer. Kahl, Yorie Kahl, and Posse members David Broer and Scott Faul flee Medina in two Posse members’ cars, but the ruse only briefly confuses the marshals, and two police cars with flashing lights quickly apprehend Kahl and Broer. One car is driven by deputy police chief Steve Schnabel; the other by Muir and Wigglesworth. Kapp, Cheshire, and Hopson are close behind in a third vehicle. Kahl and Broer turn off the road into a driveway, and Kahl, armed with a modified Ruger Mini-14 assault rifle, prepares to open fire on the approaching police officers. The others leap out of their cars and, armed with Mini-14s, take up positions in a ditch. When the marshals arrive moments later, they get out of their cars and order the Posse members to lay down their weapons. One of the Posse members opens fire, and in the 30-second volley that ensues, Kahl and his fellow Posse members lay down a deadly fire that inflicts heavy damage on the outgunned marshals. Kahl wounds Kapp and Schnabel with two shots, and kills Muir with a shot to the heart. Muir fires off a single shot that gravely wounds Yorie. Hopson is struck in the head by a ricocheting bullet that causes permanent brain damage. Rifle fire from Yorie and Faul fatally wounds Cheshire. Kapp, severely injured, manages to shoot Yorie three more times, then takes cover. Kahl executes the dying Cheshire with a shot to the head, then points his rifle at the downed Schnabel, but chooses not to kill him, instead taking his police cruiser and fleeing the scene. He takes the injured Yorie to a Posse member, Dr. Clarence Martin; Yorie and Kahl’s wife Joan are arrested later that night at the hospital, and Yorie tells FBI agents some details of the confrontation. Faul, Broer, and Posse member Vernon Wegner are also arrested; Faul refuses to tell police or FBI investigators where Kahl might have fled to. Police find Schnabel’s abandoned police cruiser. Two days later, police surround Kahl’s farmhouse and bombard it with tear gas, only to find it abandoned. They do find a store of weapons and ammunition, and a collection of Posse Comitatus pamphlets and related documents. Kahl’s family insists that law enforcement efforts to apprehend Kahl are unfair, and complain that he is being “hunted like a dog.” Joan Kahl appears on television and tearfully pleads with her husband to surrender, to no avail. FBI and US Marshals descend on the local Posse Comitatus headquarters, and offer a $25,000 reward for information leading to his arrest, but Kahl has disappeared into the shadows of the far-right militia network. [Ian Geldard, 2/19/1995; Southern Poverty Law Center, 12/2001; Levitas, 2002, pp. 194-200; Nicole Nichols, 2003; Anti-Defamation League, 2011] Kahl’s murder of the marshals will be used by Posse Comitatus leader James Wickstrom to promote the anti-tax movement (see February 14-21, 1983). Four months later, Kahl will die in a bloody standoff with police officers in Arkansas (see March 13 - June 3, 1983).
Entity Tags: Robert Cheshire Jr, Steve Schnabel, Scott Faul, Yorie Kahl, Posse Comitatus, Vernon Wegner, Leonard Ginter, Kenneth Muir, Covenant, Sword, and Arm of the Lord, Carl Wigglesworth, Bradley Kapp, Joan Kahl, Darrell Graf, Clarence Martin, Gordon Kahl, James Hopson Jr, James Wickstrom, Harold (“Bud”) Warren, David Broer
Timeline Tags: US Domestic Terrorism
Gordon Kahl, an anti-tax protester, Posse Comitatus member (see 1967 - 1973 and 1975 - 1981), and federal fugitive who killed two US Marshals in a February shootout in North Dakota (see February 13, 1983 and After), quickly gains national prominence as the media begins reporting on the fatal confrontation. Most media reports only identify him as a “tax protester,” failing to mention his Posse Comitatus membership and often leaving out the involvement of his son, Yorie Kahl, and two other Posse members who helped kill the marshals and wound three others. CBS news anchor Dan Rather goes farther than most of his colleagues, describing Kahl as “a radical survivalist, a fanatic, [and] an ultraright-wing tax protester” whom authorities describe as “a killer.” It does not take long for Posse Comitatus leader James Wickstrom (see 1984) to begin contacting the media himself, proudly announcing Kahl’s Posse connections and announcing: “The Posse in Wisconsin is on standby alert. All communications are locked in.” The government has, in pursuing Kahl, “declared war on the people of this country,” Wickstrom tells reporters. He adds that his organization has some three million members, though the FBI estimates its membership at closer to a few thousand; the number is hard to pin down, as many anti-tax protesters (see 1951-1967, December 9, 1968 and After, 1970-1972, 1974, 1976-1978, 1980, and Early 1980s) have at least some affiliation with the loosely organized group. As the FBI and local law enforcement officials mount a nationwide manhunt, Wickstrom, with some success, tries to turn the story away from Kahl’s murder of the two marshals and towards the story of the Posse’s anti-tax beliefs. “What we have here is a gentleman who is now being pursued in North Dakota on a setup to shut his mouth because the American people are waking up by the tens of thousands across this country, realizing that we have been duped by a private central bank,” he declares to a Milwaukee reporter. He makes an appearance on the nationally televised Phil Donahue Show, where he claims that his “heart really goes out to the US Marshals and the children of those marshals and their families.” Asked by Donahue if he would join Kahl’s wife in asking Kahl to turn himself in, Wickstrom changes the subject, arguing that Kahl’s civil rights have been violated and the real issues are farm foreclosures, corrupt courts, the income tax, the Federal Reserve, unemployment, foreign workers, and Jews. In 2002, author Daniel Levitas will write, “Phil Donahue’s dialogue with Wickstrom was oftentimes inane, and though he clearly didn’t agree with his guest, he gave Wickstrom a tremendous platform to spread his ideas.” Wickstrom will use his media appearances to mount a longshot candidacy for governor of Wisconsin. [Levitas, 2002, pp. 201-204] Four months later, Kahl will die in a bloody standoff with police officers in Arkansas (see March 13 - June 3, 1983).
The KGB, the Soviet intelligence directorate, issues a “high alert” for its Operation VRYAN intelligence alert system monitoring the US for signs of a possible military and nuclear assault (see May 1981). Provoked by two years of US military provocations (see 1981-1983), fearing that the rhetorical war between the US and the USSR (see Early 1983) is ready to explode into something far more concrete, and disheartened by worries that the Soviet Union is losing ground in its global contest with the US (see Early 1981), the Kremlin informs all KGB “rezidenturas,” or station chiefs, that VRYAN has “acquired an especial degree of urgency” and is “now of particularly grave importance.” Forty station chiefs receive new orders marked “strictly personal,” instructing them to organize a “continual watch” using their entire operational staff. They are also ordered to redirect existing agents who might have access to VRYAN-related information, to recruit new agents, and to escalate surveillance and intelligence-gathering operations. [Fischer, 3/19/2007]
President Reagan gives his famous “evil empire” speech to the National Association of Evangelicals. The speech is designed to dissuade Christian evangelicals from supporting a freeze on the production and deployment of nuclear weapons, as the Conference of Catholic Bishops had already done. The speech, written by Anthony Dolan, a follower of hard-line conservative philosopher William F. Buckley, is what author J. Peter Scoblic calls “a model conservative blend of religious traditionalism and anticommunism [that makes] explicit the link between Manicheanism and nuclear war fighting.” The cause is not merely peaceful co-existence, but an apocalyptic battle between good (the West) and evil (the Soviet empire), one that must be won no matter the costs. “We must never forget that no government schemes are going to perfect man,” Reagan tells his listeners. “We know that living in this world means dealing with what philosophers would call the phenomenology of evil or, as theologians would put it, the doctrine of sin. There is sin and evil in the world, and we are enjoined by Scripture and the Lord Jesus to oppose it with all our might.” Supporting the nuclear freeze movement would be to commit the sin of moral relativism, Reagan says, putting moral strictures aside for temporal, even political concerns. “I urge you to beware the temptation of pride,” he warns, “the temptation of blithely declaring yourself above it all and label both sides equally at fault, to ignore the facts of history and the aggressive impulses of an evil empire, to simply call the arms race a giant misunderstanding and thereby remove yourself from the struggle between right and wrong and good and evil.” [Scoblic, 2008, pp. 117]
Gordon Kahl, an anti-tax protester, Posse Comitatus member (see 1967 - 1973 and 1975 - 1981), and federal fugitive who killed two US Marshals in a February shootout in North Dakota (see February 13, 1983 and After), arrives at a farm in Mountain Home, Arkansas. The farm owner, Arthur Russell, is a member of another white supremacist organization, the Covenant, Sword, and Arm of the Lord (CSA), and willingly hides Kahl, who is facing a second warrant for his arrest issued March 11. Kahl spends two months hiding at Russell’s farmhouse, studying the Bible, watching television, and spending time with Russell’s daughter Karen. While Kahl is in hiding, his family and colleagues in the Posse who were involved in the shootout are tried in May 1983; his son Yorie Kahl and colleague Scott Faul are convicted of second-degree murder and six other related charges; David Broer is convicted of conspiracy and of harboring a fugitive; and his wife Joan Kahl is acquitted of conspiracy and harboring a fugitive.
FBI Learns of Kahl's Whereabouts - In late May, after the convictions, Kahl leaves the Russell farm with his CSA friend Leonard Ginter and Ginter’s wife Norma. Ginter, an unemployed carpenter, belongs to a small anti-government group called Americans for Constitutional Enforcement, but is not too ideologically rigid not to accept food stamps for himself and his wife. Kahl and the Ginters drive to Smithville, Arkansas, a tiny Ozark town where the Ginters have a concrete house with a vegetable patch and a chicken pen. After Kahl leaves, Karen Russell calls the FBI and informs them of his whereabouts.
Final Confrontation - On June 3, FBI agent James Blasingame organizes a group of US Marshals and local lawmen at the Lawrence County courthouse to plan how best to apprehend Kahl and the Ginters. Twenty-eight law enforcement officials, including 15 US Marshals, six FBI agents, three state police officers, and four county lawmen descend on the Ginter home. While en route, they encounter Ginter, driving away from the house in a car with a rifle in the backseat; he has a cocked and loaded pistol in his lap. Ginter is apprehended without incident, but lies to the police, saying Kahl is not at the house. Unfortunately, the officials believe his story. At the officials’ request, Ginter drives back to the house, with five officials behind. Ginter parks his car, as do the officials; Ginter gets out and shouts: “Norma, come out. The FBI wants to talk to you.” He emphasizes the word “FBI” as loudly as possible, alerting Kahl to their presence. Norma Ginter comes out and is escorted away. Lawrence County Sheriff Gene Matthews, departing from the plan, enters the house through a utility room off the garage, with US Marshal James Hall and Arkansas State Police investigator Ed Fitzpatrick following him. Kahl is waiting in the kitchen, armed with a formidable Ruger Mini-14 assault rifle. When Matthews enters the kitchen, the two men see each other and open fire simultaneously; Kahl wounds Matthews fatally with two shots to the chest and Matthews kills Kahl with a bullet to the head. Hall and Fitzpatrick, unsure of what has happened, begin firing wildly, striking Matthews with buckshot. Matthews manages to get to a police cruiser before collapsing, and gasps, “I got him.” But the other officials are unsure if Kahl is actually dead, and if others may be in the house as well. They open fire on the house and let loose a barrage of tear gas. They then set the house afire with a can of diesel fuel; the fire ignites several thousand rounds of ammunition stored inside the house and the house is all but gutted by the conflagration. Eventually, officials are able to enter the house and find what remains of Kahl’s body in the kitchen. Posse Comitatus leader William Potter Gale, asked by a reporter about Kahl’s death, says that Kahl was murdered for helping farmers and belonging to the group. Another Posse member, Richard Wayne Snell, will later claim that Matthews had been killed by FBI agents after interrupting them during their torture of Kahl. [Southern Poverty Law Center, 12/2001; Levitas, 2002, pp. 217-220; Anti-Defamation League, 2011]
Episode Destabilizes Posse Comitatus - The Kahl episode receives national attention and helps destabilize the Posse Comitatus (see 1984). The media quickly learns of Kahl’s racist and anti-Semitic past, and reprints a letter he wrote the same night he killed the marshals and later sent to reporters. In his letter, Kahl announced that it was time to begin killing Jews: “We are engaged in a struggle to the death between the people of the Kingdom of God, and the Kingdom of Satan. We are a conquered and occupied nation; conquered and occupied by the Jews, and their hundreds or maybe thousands of front organizations doing their un-Godly work. They have two objectives in their goal of ruling the world. Destroy Christianity and the White race. Neither can be accomplished by itself, they stand or fall together.” In an attempt to exonerate his son and Faul, Kahl took credit for all the fatal shots. Kahl’s espousal of violence and anti-Semitism causes a backlash when some Posse Comitatus members attempt to portray him as a martyr. [Southern Poverty Law Center, 12/2001; Levitas, 2002, pp. 217-220]
Entity Tags: Ed Fitzpatrick, Scott Faul, William Potter Gale, David Broer, Arthur Russell, Americans for Constitutional Enforcement, Richard Wayne Snell, Posse Comitatus, Yorie Kahl, Leonard Ginter, James Blasingame, Gordon Kahl, Gene Matthews, Covenant, Sword, and Arm of the Lord, Norma Ginter, James Hall, Karen Russell, Joan Kahl
Timeline Tags: US Domestic Terrorism
Vice President George Bush hosts a secret meeting with his foreign policy adviser, Donald Gregg (see 1982), and former CIA agent Felix Rodriguez. The meeting is the first impetus of the National Security Council (NSC)‘s initiative to secretly, and illegally, fund the Nicaraguan Contras in an attempt to overthrow that country’s socialist government. Rodriguez agrees to run a central supply depot at Ilopango Air Base in El Salvador. In a memo to NSC chief Robert McFarlane, Gregg will note that the plan is rooted in the experience of running “anti-Vietcong operations in Vietnam from 1970-1972.” Gregg will also note that “Felix Rodriguez, who wrote the attached plan, both worked for me in Vietnam and carried out the actual operations outlined above.” [Spartacus Schoolnet, 12/28/2007] Rodriguez and Gregg, along with others such as Watergate burglar Frank Sturgis (see April-June 1972), were part of the CIA’s “Operation 40,” an assassination squad that operated in Cuba and the Caribbean during the late 1950s and early 1960s. Rodriguez tried at least once, in 1961, to assassinate Cuban dictator Fidel Castro. In 1967, Rodriguez interrogated and executed South American revolutionary Che Guevara. He was part of the infamous and shadowy Operation Phoenix during the Vietnam War. [Spartacus Schoolnet, 1/17/2008]
Entity Tags: Felix Rodriguez, Donald Gregg, Contras, Robert C. McFarlane, Fidel Castro, Frank Sturgis, George Herbert Walker Bush, ChÃ© Guevara, ’Operation 40’, National Security Council, ’Operation Phoenix’
Timeline Tags: Iran-Contra Affair
The Justice Department makes a counter-proposal in the dispute over whether Inslaw should provide an enhanced version of the PROMIS software and documentation to the department to ensure against the company’s bankruptcy (see December 6, 1982). The counter-proposal is made in a letter from Peter Videnieks, the department’s contracting officer, to Harvey Sherzer, an attorney for Inslaw. Videnieks still wants a copy of the enhanced PROMIS software, but is willing to limit the software’s dissemination to the attorneys’ offices contemplated by the original contract. However, the department does not admit that Inslaw has made privately-funded enhancements to the software, so this limitation on dissemination will only apply if Inslaw can demonstrate the privately-funded enhancements that it claims have actually been made. Nevertheless, no mechanism for producing such proof will be specified. If Inslaw can show the software contains such enhancements, the department will either tell it to remove them, or negotiate regarding inclusion of the enhancements. [US Congress, 9/10/1992]
Strategic Defense Initiative logo. [Source: United States Missile Defense Agency]President Reagan announces his proposal for the Strategic Defense Initiative (SDI, later nicknamed “Star Wars”), originally conceived two years earlier (see 1981). SDI is envisioned as a wide-ranging missile defense system that, if it works, will protect the United States from nuclear attacks from the Soviet Union or other countries with ballistic missiles, essentially rendering nuclear weapons, in Reagan’s words, “impotent and obsolete.” Reagan says, “I call upon the scientific community in our country, those who gave us nuclear weapons, to turn their great talents now to the cause of mankind and world peace, to give us the means of rendering these nuclear weapons impotent and obsolete.” Soviet leader Yuri Andropov’s response is unprececented in its anger (see March 27, 1983); Soviet Ambassador Anatoly Dobrinyn says SDI will “open a new phase in the arms race.” [PBS, 2000; Scoblic, 2008, pp. 129]
US Hardliners 'Ecstatic' - Hardliners in and out of the Reagan administration are, in author J. Peter Scoblic’s characterization, “ecstatic, seeing SDI as the ultimate refutation of [the principle of] mutual assured destruction and therefore of the status quo, which left [the US] unable to seek victory over the Soviet Union.” The day after the speech, Senator Barry Goldwater (R-AZ) sends Reagan a one-sentence letter: “That was the best statement I have heard from any president.”
'Less Suicidal' Adjunct to First Strike - Scoblic will write that if SDI is implemented as envisioned, “[a]lthough the Soviets would still be able to inflict enough damage that a first strike by the United States would be suicidal, it would be ‘less suicidal’ to the extent that such a concept made sense, which some Reagan officials believed it did. In short, SDI was a better adjunct to a first strike than it was a standalone defense. That made it critically destabilizing, which is why missile defense had been outlawed by [earlier treaties] in the first place.” [Scoblic, 2008, pp. 129-130]
In an unusual display of rhetorical anger, the Soviet Union’s General Secretary, Yuri Andropov, responds to the US’s announcement of its development of an anti-ballistic missile defense (SDI, or “Star Wars”—see March 23, 1983) by accusing President Reagan of “inventing new plans on how to unleash a nuclear war in the best way, with the hope of winning it.” CIA analyst Benjamin Fischer will later call Andropov’s statement “unprecedented.” Ignoring the counsel of his own advisers to remain calm, Andropov, with unusually heated rhetoric, denounces the US program as a “bid to disarm the Soviet Union in the face of the US nuclear threat.” Such space-based defense, he says, “would open the floodgates of a runaway race of all types of strategic arms, both offensive and defensive. Such is the real significance, the seamy side, so to say, of Washington’s ‘defensive conception.‘… The Soviet Union will never be caught defenseless by any threat.… Engaging in this is not just irresponsible, it is insane.… Washington’s actions are putting the entire world in jeopardy.” Andropov’s statement violates what Fischer will describe as a “longstanding taboo” against “citing numbers and capabilities of US nuclear weapons in the mass media” as well as “referr[ing] to Soviet weapons with highly unusual specificity.” Fischer will go on to note: “[F]or the first time since 1953, the top Soviet leader was telling his nation that the world was on the verge of a nuclear holocaust. If candor is a sign of sincerity, then Moscow was worried.” [Fischer, 3/19/2007; Scoblic, 2008, pp. 134]
The Reagan administration ignores the recommendations of a panel of experts named, at Congress’s behest, to provide alternatives to the stalled START arms reduction talks with the Soviet Union (see January 1983-April 1983). Spurred by hardliners in the administration, President Reagan instead instructs his negotiators to offer, not one unacceptable alternative, as initially offered to the Soviets (see May 1982 and After), but two unacceptable alternatives: either accept drastic limits on “throw weights,” or payloads, of their nuclear missiles, or accept harsh reductions in the number of ICBMs they can deploy, which will also reduce Soviet throw weight. The Soviets retort that the US is again trying to force them to disarm without agreeing to any reductions in their own nuclear arsenal. One Soviet official observes, “Your idea of ‘flexibility’ is to give a condemned man the choice between the rope and the ax.”
'Firing' the Executive Branch - Congressional leaders have had enough of the administration’s obstructionism, and brings in panel leader Brent Scowcroft to craft an alternative. In his 1984 book Deadly Gambits, future State Department official Strobe Talbott will write, “The Legislative Branch had, in effect, fired the Executive Branch for gross incompetence in arms control.” Scowcroft writes a proposal that enables both the US and USSR to reduce their nuclear arsenals with a measure of equivalence, taking into account the disparities between the two.
Misrepresenting the Proposal - The administration accepts Scowcroft’s proposal with some minor amendments, but the Soviets balk at the agreement, in part because chief US negotiator Edward Rowny, a hardliner who opposes arms negotiations on ideological grounds, misrepresents the proposal to his Soviet colleagues. The “basic position of this administration has not changed,” Rowny declares. In turn, the Soviets declare, “Ambassador Rowny is not a serious man.” When the talks come to their scheduled end in December 1983, the Soviets depart without setting a date for resumption.
More 'Sophisticated' Obstructionism - In 2008, author J. Peter Scoblic will write of the negotiations: “The conservative position had by now become far more sophisticated. By never rejecting negotiations outright, the administration could always claim that it was pursuing them with vigor, and if critics complained that its proposals were nonnegotiable, it could simply, if disingenuously, claim that it wanted to substantively reduce nuclear arsenals, not just perpetuate the status quo.” [Scoblic, 2008, pp. 124-125]
Inslaw and the Justice Department conclude a modification, number 12, to a contract under which the company is to install PROMIS software for the department (March 1982). The modification appears to resolve a dispute that has arisen between the two parties (see December 6, 1982 and March 18, 1983), as the department wants Inslaw to give it a copy of the software, but Inslaw says it has made privately-funded enhancements to the code and wants the department to undertake not to disseminate the enhanced software beyond the locations specified in the original contract (the department is entitled to disseminate an earlier, public domain version of the contract any way it wants). The modification says that Inslaw will give the department a copy of the software, and the department undertakes not to disseminate it in future, provided that Inslaw can demonstrate the enhancements were actually made. As a result of the agreement, the department will continue to make advance payments to Inslaw. It is this modification that leads to a series of legal disputes that will last well into the next decade, as the parties never come to an agreement on how the enhancements are to be demonstrated and the department begins to disseminate the software unchecked. [US Congress, 9/10/1992]
An official in the Massachusetts State government asks a Justice Department official about the availability of PROMIS software from sources other than Inslaw, the company that created it. This follows a demonstration of PROMIS by Inslaw at the Boston US Attorneys office to a group of people from the State of Massachusetts. The Massachusetts request is passed on to Jack Rugh of the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys. Rugh replies that some government-owned versions of the software are available, but there is currently a dispute with Inslaw over ownership of an enhanced version of the software. [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).
The October 1983 bombing of US Marine barracks in Beirut, Lebanon. [Source: US Marine Corps.]In June 1982, Israel invaded Lebanon and US Marines were sent to Lebanon as a peacekeeping force in September 1982. On April 18, 1983, the US embassy in Beirut, Lebanon, is bombed by a suicide truck attack, killing 63 people. On October 23, 1983, a Marine barracks in Beirut is bombed by another suicide truck attack, killing 241 Marines. In February 1984, the US military will depart Lebanon. The radical militant group Islamic Jihad will take credit for both attacks (note that this is not the group led by Ayman al-Zawahiri). The group is believed to be linked to Hezbollah. Prior to this year, attacks of this type were rare. But the perceived success of these attacks in getting the US to leave Lebanon will usher in a new era of suicide attacks around the world. The next two years in particular will see a wave of such attacks in the Middle East, many of them committed by the radical militant group Hezbollah. [US Congress, 7/24/2003; US Congress, 7/24/2003 ] The Beirut bombings will also inspire Osama bin Laden to believe that the US can be defeated by suicide attacks. For instance, he will say in a 1998 interview: “We have seen in the last decade the decline of the American government and the weakness of the American soldier who is ready to wage Cold Wars and unprepared to fight long wars. This was proven in Beirut when the Marines fled after two explosions.” [ABC News, 5/28/1998] In 1994, he will hold a meeting with a top Hezbollah leader (see Shortly After February 1994) and arrange for some of his operatives to be trained in the truck bombing techniques that were used in Beirut. [9/11 Commission, 7/24/2004, pp. 48]
The Justice Department makes a version of PROMIS software owned by the government available to a contractor named Dave Hudak. The version is a pilot copy for use on Prime computers and is provided to Hudak under a contract according to which he should develop benchmarking programs for computer purchases by the department. Apparently, the version is made available by the Office of Management Information Systems Support (OMISS) at the Executive Office for US Attorneys. No restrictions are placed on the use of this software. According to Jack Rugh of OMISS, the department may also tell the bidders a version of PROMIS which Inslaw claims it owns may be made available to them at some future date. [US Congress, 9/10/1992] This is one of several occasions when OMISS provides versions of the software to entities outside the Justice Department (see April 22, 1983).
Various versions of PROMIS software owned by the government are made available to potential bidders who may offer to supply computer equipment to the government. Apparently, the versions are made available by the Office of Management Information Systems Support (OMISS) at the Executive Office for US Attorneys for use in benchmarking the contractors’ equipment. No restrictions are placed on the use of this software. According to Jack Rugh of OMISS, the Justice Department may also tell the bidders a version of PROMIS which Inslaw claims it owns may be made available to them at some future date. [US Congress, 9/10/1992] This is one of several occasions when OMISS provides versions of the software to entities outside the Justice Department (see April 22, 1983).
Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Executive Office for US Attorneys holds a number of informal discussions with personnel in the Justice Department’s criminal division regarding the division’s possible use of OMISS’s enhanced version of PROMIS, as well as its use of one of OMISS’s Prime computers. In addition, the possibility of cooperating on PROMIS software maintenance and enhancements in the future is discussed. [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).
Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys discusses the availability of a government-owned pilot version of PROMIS software, as well as an enhanced version, with Don Manson of the Bureau of Justice Statistics on a number of occasions. According to a later memo drafted by Rugh, Manson is “particularly interested in providing a copy of our enhanced software to the US Virgin Islands.” [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).
Jack Rugh, the acting assistant director of the Office of Management Information Systems Support at the Justice Department’s Executive Office for US Attorneys, drafts a memo summarizing occasions on which versions of PROMIS software have been provided to organizations other than US Attorneys’ offices by the department or such provision has been discussed. The memo is drafted in response to a request by PROMIS project manager Madison “Brick” Brewer, who asked Rugh about any discussions he may have had about such provision a week earlier. The memo lists various occasions on which versions of PROMIS were provided to entities outside the Justice Department (see Early 1982,Before April 22, 1983, and Before April 22, 1983). It also documents discussions Rugh has had about providing the software to other entities (see Early 1982, Between Early 1982 and April 22, 1983, Before April 22, 1983, and Before April 22, 1983). [US Congress, 9/10/1992]
A Justice Department official writes a memo saying he will soon provide the PROMIS application to an Israeli government representative. The official is Jack Rugh, the acting assistant director of the Office of Management Information Systems Support at the Executive Office of US Attorneys. The memo states that “Reference my memorandum to file dated April 22, 1983, on the same subject. [C. Madison] Brick Brewer [PROMIS project manager at the Justice Department] recently instructed me to make a copy of an LEAA version of PROMIS [a version wholly owned by the Justice Department] available to Dr. Ben Orr, a representative of the government of Israel. Dr. Orr called me to discuss that request after my earlier memorandum was written. I have made a copy of the LEM DEC version of PROMIS and will provide it along with the corresponding documentation, to Dr. Orr before he leaves the United States for Israel on May 16.”
High Officials Possibly Involved - The House Judiciary Committee will comment: “Given the international dimensions to the decisions, it is difficult to accept the notion that a group of low-level Department personnel decided independently to get in touch with the government of Israel to arrange for transfer of the PROMIS software. At the very least, it is unlikely that such a transaction occurred without the approval of high-level Department officials, including those on the PROMIS Oversight Committee.”
Actual Version of PROMIS Unclear - The committee will also later speculate that a version whose ownership is under dispute was also given to the Israelis, saying: “[I]t is uncertain what version actually was transferred. Department managers believed that all versions of the Enhanced PROMIS software were the Department’s property. The lack of detailed documentation on the transfer, therefore, only creates new questions surrounding allegations that Enhanced PROMIS may have been sold or transferred to Israel and other foreign governments.” [US Congress, 9/10/1992] Rugh will pass the application to Brewer for handing over to Orr six days later (see May 12, 1983).
Jack Rugh, the acting assistant director of the Office of Management Information Systems Support at the Justice Department’s Executive Office for US Attorneys, writes a memo turning over the PROMIS application to a colleague, C. Madison Brewer. The application is for passage to the government of Israel, a transfer already discussed by Brewer and Rugh (see May 6, 1983). Rugh writes: “Enclosed are the PROMIS materials that you asked me to produce for Dr. Ben Orr of the government of Israel. These materials consist of the LEM DEC PDP 11/70 version of PROMIS on magnetic tape along with the printed specifications for that tape, as well as two printed volumes of PROMIS documentation for the LEAA version of the system.” [US Congress, 9/10/1992]
The South Korean government informs the State Department that it received a request from Iraq to militarize some helicopters. [Battle, 2/25/2003]
The Supreme Court rules in INS v. Chadha that Congress has no right to issue what it calls “legislative vetoes,” essentially provisions passed by Congress giving the executive branch specific powers but with Congress reserving the right to veto specific decisions by the executive branch if it does not approve of the decisions made by the executive. Congress had relied on such “legislative vetoes” for years to curb the expanding power of the president. The Court strikes down hundreds of these “legislative vetoes” throughout federal law. Congress quickly schedules hearings to decide how to respond to the Court’s ruling. White House attorney John Roberts (see September 29, 2005), a young, fast-rising conservative, is one of a team of lawyers assigned to review the administration’s upcoming testimony before Congress. Some of the lawyers want to push Congress to place independent agencies such as the Federal Trade Commission (FTC) and Food and Drug Administration (FDA) under White House control—part of the evolving “unitary executive” theory of presidential power (see April 30, 1986). Roberts writes: “With respect to independent agencies… the time may be ripe to reconsider the existence of such entities, and take action to bring them back within the executive branch.… I agree that the time is ripe to reconsider the Constitutional anomaly of independent agencies… More timid souls may, however, desire to see this deleted as provocative.” [Savage, 2007, pp. 256-257]
Robert Gallucci, a director of the Bureau of Near Eastern and South Asian Affairs at the State Department, drafts a comprehensive report showing that Pakistan’s nuclear weapons program is continuing. The report begins with an overview of Pakistan’s nuclear fuel cycle and a confirmation that Pakistan has built a plant to “concentrate uranium ore,” while another to produce uranium hexafluoride is “already in operation.” The report also details work done at the facility in Kahuta headed by Pakistani scientist A. Q. Khan and the technology being assembled there based on designs stolen in the Netherlands. In addition, Gallucci warns of the procurement network’s increasing confidence and its use of “false end-use statements.”
'Unambiguous Evidence' - The report, which is marked “secret” and not distributed to security contractors or abroad, finds, “There is unambiguous evidence that Pakistan is actively pursuing a nuclear weapons development program,” and, “Pakistan’s near-term goal evidently is to have a nuclear test capability enabling it to explode a nuclear device if [Pakistani dictator Muhammad] Zia [ul-Haq] decides it’s appropriate for diplomatic and domestic political gains.”
'Nuclear Explosives' - Another section, entitled “Nuclear Explosives,” says that Pakistan is working on an “electronic triggering circuit for nuclear device detonation… as well as experiments on conventional as well as shaped charges.” The Pakistanis have “already undertaken a substantial amount of the necessary design and high explosives testing of the explosive device and we believe that Pakistan is now capable of producing a workable package of this kind.” Gallucci even has drawings given to suppliers by agents for Khan that have been “unambiguously identified as those of a nuclear device.”
Chinese Connection - The report also mentions the Pakistan-China connection, as notes in Chinese and an operations manual from China have been found in circumstances linked to Khan’s operations. US scientists who analysed them concluded they concerned equipment remarkably similar to a device used in a 1964 nuclear test by China, and Gallucci finds, “China has provided assistance to Pakistan’s program to develop a nuclear weapons capability.” [Levy and Scott-Clark, 2007, pp. 93-94, 478]
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