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Is North Network Cocaine
Connected?
by Vince Bielski and Dennis
Bernstein
Among the major stories not fully explored
regarding the "private" arms network set up by fired National Security
Council (NSC) staffer Lt. Col. Oliver North is the network's alleged sale
of cocaine to fund contra troops fighting the Nicaraguan government. Colombian
"cocaine lords," working in conjunction with Cuban-American and American
operatives in the "North network," have been smuggling massive amounts
of cocaine into the U.S. each month, starting in September 1983, and part
of the profits were used to purchase arms for the contras based in Costa
Rica, according to investigators and congressional sources.
But Bill Schofield, at the State Department's
Nicaragua desk, said that he was not aware of any contra involvement in
cocaine smuggling. Schofield added, "There's been stories that individuals
may have been involved in it, but none of the leadership has, and it's
not a practice."
Sen. John Kerry (D-MA), whose office has
been investigating the alleged cocaine smuggling, recently told the media,
"I'm confident that the contras have received drug money. They have received
illegal shipments of weapons and that U.S. officials knew of it."
When asked if North was linked to this
operation, Kerry aide John Winer told In These Times, "We have received
a variety of allegations about drug connections to the contras and to parts
of the North network. As to whether Oliver North was directly involved
in that, I can't say. But parts of the North network allegedly were. And
that needs to be looked at very seriously."
Kerry's office is in contact with several
individuals who will testify about the cocaine smuggling charges in the
likely event that congressional hearings are held on this subject early
next year. In the meantime, Kerry aides refused to reveal the details of
what they know. But much of Kerry's evidence is the product of a two-year
investigation led by Dan Sheehan of the Christic Institute, a Washington-based
law firm.
A marriage of connivance
From interviews with Sheehan, Jesus Garcia,
an operative in the North network, and from information given indirectly
by a Nicaraguan contra, In These Times has pieced together the outlines
of what might become yet another major scandal for the Reagan administration
in January. The picture that emerges is of two separate operations -- one
allegedly set up by North in 1984 to supply arms to the contras, and the
other a Colombian-based cocaine trafficking operation that had been smuggling
the drug into the U.S. for several years -- that merged together for their
mutual benefit.
Sheehan said two of Colombia's largest
dealers of cocaine, Jorge Ochoa and Pablo Escobar, had been involved in
smuggling cocaine into the U.S. in 1983. At this time, the North network
was interested in creating a "southern front" of contra forces in northern
Costa Rica, he said.
Operatives in the network, including anti-Castro
Cubans Felipe Vidal, Rene Corbo, Francisco Chanes and American John Hull,
struck a deal with the Colombians, who agreed to provide them with hundreds
of pounds of cocaine on a regular basis, Sheehan said.
A Nicaraguan contra, who was known to reporters
as David before his death last year, and other mercenaries have provided
information that Hull's land in Costa Rica is used for training contras
and staging military attacks against Nicaragua. Kerry's office also has
information linking Hull to the CIA or the NSC. According to a Kerry report,
"Hull...has been identified by a wide range of sources, including Eden
Pastora, mercenaries, Costa Rican officials and contra supporters, as a
CIA or NSC liaison to the contras on the southern front."
The cocaine is flown from Columbia to airstrips
in northern Costa Rica located on land owned or managed by Hull, Sheehan
claimed. For the Colombians, Hull's land provides an ideal refueling point.
In return, the contra supporters receive $10,000 to $25,000 for each plane
that refuels, Sheehan alleged.
The Christic Institute learned of this
arrangement from intelligence officials in the Costa Rican Rural Guard,
workers on Hull's land who claim to have unloaded the illegal substance
from the small planes and the pilots who transported the cocaine. Sheehan
said he also obtained records of Corbo buying huge gasoline tanks in Costa
Rica that are used for refueling the planes.
Evidence of the Colombia-Costa Rica connection
was provided indirectly by the Nicaraguan contra David, who decided to
tell his story in part because of the contras' involvement in cocaine trafficking.
He revealed what he knew of the drug trafficking activities to a Costa
Rican named Carlos Rejos Chinchilla. According to Rejos' notes, obtained
by In These Times, David said: " Drugs come from Colombia and go
to Miami in small planes. Sometimes they are dropped by parachute to locations
inside Costa Rica. Costa Rica is a perfect place for drug trafficking.
There's no control here."
Sheehan said the drug is transported by
two methods into the U.S. It is flown to Memphis or Denver, or it is packed
into container ships in Costa Rica belonging to seafood companies with
which Chanes is associated, and is then transported to Miami, New Orleans
and San Francisco, according to Sheehan.
The snow keeps falling
"As amazing as it sounds," Sheehan alleged,
"the conspiracy is continuing to bring about one ton or 1,000 kilos of
cocaine into the U.S. each week." The Drug Enforcement Agency estimates
that one ton of cocaine has a street value of between $26 and $50 million.
Sheehan claimed that a portion of the profits from the sale of cocaine
is deposited in one bank in Miami and two in Central America and later
withdrawn to purchase weapons and explosives for the contras.
Jesus Garcia, a former Dade County, Fla.,
deputy sheriff, claims to have been an operative in the arms supply network.
In a telephone interview from prison, where Garcia is now serving a three-year
term for possession of a firearm, he told In These Times, "It is
common knowledge here in Miami that this whole contra operation in Costa
Rica was paid for with cocaine. Everyone involved knows it. I actually
saw the cocaine and the weapons together under one roof, weapons that I
helped ship to Costa Rica."
Garcia said he was personally involved
in a March 1985 shipment of six tons of arms to northern Costa Rica from
Miami. The weapons were stored at the home of fellow Cuban-American Chanes
in Miami, according to Garcia, who said he was working with Chanes and
Steven Carr, a mercenary.
Near the weapons Garcia said he saw a supply
of cocaine. "The cocaine was kept in a dresser, about 10 feet away from
the weapons," said Garcia. "Carr told me that the three keys (kilograms)
was what was left from a larger shipment." Carr told Garcia the shipment
of cocaine was brought to the U.S. from Costa Rica in ships belonging to
Ocean Hunter, one of the companies that Chanes is associated with, according
to Garcia.
Garcia said he told FBI agents that Chanes
and Corbo were also involved in the contra arms supply operation. Garcia
said the agents responded by saying that Chanes and Corbo were already
the subjects of an FBI narcotics trafficking investigation.
ReaganGate
According to Sen. Kerry's office, Chanes is
also associated with Frigorificos de Puntarennas, a Costa-Rican-based seafood
importing firm, because he is one of three people who controls its account.
The company received $231,587 from the $27 million in official U.S. humanitarian
aid to the contras in 1985, according to Sen. Kerry's office. Robert Owen,
a contract employee with the Nicaraguan Humanitarian Aid Office that distributed
the aid, was responsible for the Frigorificos account, according to sources
that spoke to Kerry's office.
Peter Glibbery, a British mercenary, told
several sources he witnessed the arrival of the weapons that Garcia helped
transport on airstrips located on land managed by Hull in Costa Rica. Glibbery
said he was in the company of Owen, Lt. Col. Oliver North's liaison with
the contra network, when the weapons arrived.
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