A Senate Foreign Relations subcommittee heard testimony Oct. 30 on alleged financial misdeeds by contra backer John Hull. Hull, a U.S.-born rancher in northern Costa Rica, received monthly stipends from the CIA and contra leader Adolfo Calero for his support of the contras. His farm includes airstrips used to resupply the contras.  

Sen. John Kerry (D-Mass), who chairs the Subcommittee on Terrorism, Narcotics and International Operations, focused his attention on a loan Hull received in 1984 from the Overseas Private Investment Corp. (OPIC). OPIC lends money to U.S. citizens for investment in projects in developing countries. The agency apparently loaned Hull $375,000 to build a wood mill in northern Costa Rica. Hull has only paid $62,000 in interest payments on the defaulted loan, and foreclosure proceedings began last month, an OPIC official told the lawmakers.  

The central question, Kerry maintained, was "whether the loan was made on its merits, in furtherance of the development of the Costa Rican economy, or whether it was at the behest of another agency or other individuals in furtherance of Mr. Hull's activities." OPIC general counsel Eric Garfinkel told the subcommittee that agency officials "certainly weren't aware" of the airstrips on Hull's farm when they made the loan.  

Kerry faulted OPIC for failing to visit the project site before granting the loan, and for using a property appraiser suggested by Hull's attorney. One OPIC loan officer said the agency had been defrauded by Hull, who falsely asserted that valid mortgages were in place to cover the loan.  

Kerry also questioned OPIC officials about their relations with Robert Owen, who represented Hull in meetings with OPIC. Owen was at the same time assisting Hull and then-National Security Council aide Oliver North in the contra resupply operation. OPIC officials denied any improprieties in their dealings with Owen.  

In 1985, when OPIC officials began to inquire about Hull's overdue payments, the rancher explained in a letter that the land was overrun by squatters and had been damaged by floods. But a congressional investigator said the letter is not credible.  

Two U.S. investors testified that they had never received any return on money they sent to Hull to purchase and manage farms for them. Investor Louella Hood became suspicious about Hull's repeated requests for additional management fees and warnings about "bodies floating in the river" from the contra war. Hood said she went to Costa Rica and found there was no threat from the war, and that her farm was 2000 acres smaller than Hull had told her.  

A congressional source said Hull may have defrauded as many as 16 private investors in a similar manner.  

William Crone, the owner of the sawmill Hull told OPIC would become part of the project, also provided damaging testimony. Crone said Hull put up other people's ranches as security for the loan without the knowledge of the owners, who lived in the U.S. Although Crone was supposed to be a 15% owner in Hull's corporation, Maderas Tropicales, Crone never saw the loan documents and never received any income.  

Crone said Hull utilized only a small amount of the OPIC money for the wood mill project. The mill, he said, produced only several loads of flawed ax handles. Rather than ship the faulty handles, a Hull employee purchased locally produced ax handles and shipped them to the U.S.  

While working with Hull, Crone said he met Oliver North in the National Security Council office. Through his association with Hull, Crone began to work for the contra resupply network. Weapons and supplies for the contras were kept near Crone's sawmill, and he said he thought drugs were being flown to airstrips on ranches managed by Hull. Asked whether aircraft loaded with weapons for the contras were landing on an airstrip on his farm, Crone responded, "Well, possibly." Chuckles echoed in the hearing room.  

As the 54-year old former Indiana farmer continued his testimony, it became clear why he was taking the risk of implicating himself in criminal activities. "I'm not sure if it's my farm because Mr. Hull's trying to take that away from me," he said. He said Hull wants to sell Crone's farm to pay back OPIC.  

Crone said a man who wanted to send weapons and soldiers to Costa Rica brought him to a camp near Miami where 20-30 men were undergoing military training. The man, whose name Crone said he could not recall, wanted to fly troops into Costa Rica on a DC-3 airplane. At the camp Crone said he met Rene Corbo, a Cuban-American known to have recruited mercenaries to fight with the contras. The camp was part of a network sending weapons to contra forces in Costa Rica, according to Crone. He refused to speak further about the camp, fearing retribution from Hull.  

Crone said Hull was "trying to be John Wayne in Costa Rica." He said Hull was "protected" by the U.S. Embassy in San Jose, and that Hull had introduced him to the U.S. ambassador there.  

In July, the Senate Foreign Relations Committee unanimously issued a subpoena on Hull, but it cannot legally be served as long as he remains in Costa Rica.