The Sordid Contra-Cocaine Saga

NOVANEWS

From the Archive: It’s been a decade since the big U.S. newspapers hounded journalist Gary Webb to suicide because he exposed their failure to stop one of Ronald Reagan’s worst crimes: drug trafficking by the Nicaraguan Contras. The sordid saga finally was told by a Hollywood movie, Robert Parry noted in October.

By Robert Parry

The movie, “Kill the Messenger,” is forcing the mainstream U.S. media to confront one of its most shameful episodes, the suppression of a major national security scandal implicating Ronald Reagan’s CIA in aiding and abetting cocaine trafficking by the Nicaraguan Contra rebels in the 1980s and then the systematic destruction of journalist Gary Webb when he revived the scandal in the 1990s.

Hollywood’s treatment of this sordid affair will likely draw another defensive or dismissive response from some of the big news outlets that still don’t want to face up to their disgraceful behavior. [It did at least at the Washington Post, see here and here.]

Journalist Gary Webb holding a copy of his Contra-cocaine article in the San Jose Mercury-News.

Journalist Gary Webb holding a copy of his Contra-cocaine article in the San Jose Mercury-News.

The New York Times and other major newspapers mocked the Contra-cocaine scandal when Brian Barger and I first exposed it in 1985 for the Associated Press and then savaged Webb in 1996 when he traced some of the Contra-cocaine into the manufacture of crack which ravaged American cities.

So, when you’re watching this movie or responding to questions from friends about whether they should believe its storyline, you might want to know what is or is not fact. What is remarkable about this tale is that so much of it now has been established by official government documents. In other words, you don’t have to believe me and my dozens of sources; you can turn to the admissions by the Central Intelligence Agency’s inspector general or to evidence in the National Archives.

For instance, last year at the National Archives annex in College Park, Maryland, I discovered a “secret” U.S. law enforcement report that detailed how top Contra leader Adolfo Calero was casually associating with Norwin Meneses, described as “a well-reputed drug dealer.”

Meneses was near the center of Webb’s 1996 articles for the San Jose Mercury-News, a series that came under fierce attack from U.S. government officials as well as major news organizations, including the New York Times, the Washington Post and the Los Angeles Times. The controversy cost Webb his career, left him nearly penniless and ultimately drove him to suicide on Dec. 9, 2004.

But the bitter irony of Webb’s demise, which is the subject of “Kill the Messenger” starring Jeremy Renner as Webb, is that Webb’s much-maligned “Dark Alliance” series eventually forced major admissions from the CIA, the Justice Department and other government agencies revealing an even-deeper relationship between President Reagan’s beloved Contras and drug cartels than Webb (or Barger and I) ever alleged.

Typical of the evidence that the Reagan administration chose to ignore was the document that I found at the National Archives, recounting information from Dennis Ainsworth, a blue-blood Republican from San Francisco who volunteered to help the Contra cause in 1984-85. That put him in position to witness the strange behind-the-scenes activities of Contra leaders hobnobbing with drug traffickers and negotiating arms deals with White House emissaries.

Ainsworth also was a source of mine in fall 1985 when I was investigating the mysterious sources of funding for the Contras after Congress shut off CIA support in 1984 amid widespread reports of Contra atrocities inflicted on Nicaraguan civilians, including rapes, executions and torture.

Ainsworth’s first-hand knowledge of the Contra dealings dovetailed with information that I already had, such as the central role of National Security Council aide Oliver North in aiding the Contras and his use of “courier” Rob Owen as an off-the-books White House intermediary to the Contras. I later developed confirmation of some other details that Ainsworth described, such as his overhearing Owen and Calero working together on an arms deal as Ainsworth drove them through the streets of San Francisco.

As for Ainsworth’s knowledge about the Contra-cocaine connection, he said he sponsored a June 1984 cocktail party at which Calero spoke to about 60 people. Meneses, a notorious drug kingpin in the Nicaraguan community, showed up uninvited and clearly had a personal relationship with Calero, who was then the political leader of the Contra’s chief fighting force, the CIA-backed Nicaraguan Democratic Force (or FDN).

“At the end of the cocktail party, Meneses and Calero went off together,” Ainsworth told U.S. Attorney Joseph P. Russoniello, according to a “secret” Jan. 6, 1987 cable submitted by Russoniello to an FBI investigation code-named “Front Door,” a probe into the Reagan administration’s corruption.

After Calero’s speech, Ainsworth said Meneses accompanied Calero and about 20 people to dinner and picked up the entire tab, according to a more detailed debriefing of Ainsworth by the FBI. Concerned about this relationship, Ainsworth said he was told by Renato Pena, an FDN leader in the San Francisco area, that “the FDN is involved in drug smuggling with the aid of Norwin Meneses who also buys arms for Enrique Bermudez, a leader of the FDN.” Bermudez was then the top Contra military commander.

Corroborating Account

Pena, who himself was convicted on federal drug charges in 1984, gave a similar account to the Drug Enforcement Administration. According to a 1998 report by the Justice Department’s Inspector General Michael Bromwich, “When debriefed by the DEA in the early 1980s, Pena said that the CIA was allowing the Contras to fly drugs into the United States, sell them, and keep the proceeds. …

“Pena stated that he was present on many occasions when Meneses telephoned Bermudez in Honduras. Meneses told Pena of Bermudez’s requests for such things as gun silencers (which Pena said Meneses obtained in Los Angeles), cross bows, and other military equipment for the Contras. Pena believed that Meneses would sometimes transport certain of these items himself to Central America, and other times would have contacts in Los Angeles and Miami send cargo to Honduras, where the authorities were cooperating with the Contras. Pena believed Meneses had contact with Bermudez from about 1981 or 1982 through the mid-1980s.”

Bromwich’s report then added, “Pena said he was one of the couriers Meneses used to deliver drug money to a Colombian known as ‘Carlos’ in Los Angeles and return to San Francisco with cocaine. Pena made six to eight trips, with anywhere from $600,000 to nearly $1 million, and brought back six to eight kilos of cocaine each time. Pena said Meneses was moving hundreds of kilos a week. ‘Carlos’ once told Pena, ‘We’re helping your cause with this drug thing … we are helping your organization a lot.”

Ainsworth also said he tried to alert Oliver North in 1985 about the troubling connections between the Contra movement and cocaine traffickers but that North turned a deaf ear. “In the spring some friends of mine and I went back to the White House staff but we were put off by Ollie North and others on the staff who really don’t want to know all what’s going on,” Ainsworth told Russoniello.

When I first spoke with Ainsworth in September 1985 at a coffee shop in San Francisco, he asked for confidentiality which I granted. However, since the documents released by the National Archives include him describing his conversations with me, that confidentiality no longer applies. Ainsworth also spoke with Webb for his 1996 San Jose Mercury-News series under the pseudonym “David Morrison.”

Though I found Ainsworth to be generally reliable, some of his depictions of our conversations contained mild exaggerations or confusion over details, such as his claim that I called him from Costa Rica in January 1986 and told him that the Contra-cocaine story that I had been working on with my AP colleague Brian Barger “never hit the papers because it was suppressed by the Associated Press due to political pressure primarily from the CIA.”

In reality, Barger and I returned from Costa Rica in fall 1985, wrote our story about the Contras’ involvement in cocaine smuggling, and pushed it onto the AP wire in December though in a reduced form because of resistance from some senior AP news executives who were supportive of President Reagan’s foreign policies. The CIA, the White House and other agencies of the Reagan administration did seek to discredit our story, but they did not prevent its publication.

An Overriding Hostility

The Reagan administration’s neglect of Ainsworth’s insights reflected the overriding hostility toward any information – even from a Republican activist like Ainsworth – that put the Contras in a negative light. In early 1987, when Ainsworth spoke with U.S. Attorney Russoniello and the FBI, the Reagan administration was in full damage-control mode, trying to tamp down the Iran-Contra disclosures about Oliver North diverting profits from secret arms sales to Iran to the Contra war.

Fears that the Iran-Contra scandal could lead to Reagan’s impeachment made it even less likely that the Justice Department would pursue an investigation into drug ties implicating the Contra leadership. Ainsworth’s information was simply passed on to Independent Counsel Lawrence Walsh whose inquiry was already overwhelmed by the task of sorting out the convoluted Iran transactions.

Publicly, the Reagan team continued dumping on the Contra-cocaine allegations and playing the find-any-possible-reason-to-reject-a-witness game. The major news media went along, leading to much mainstream ridicule of a 1989 investigative report by Sen. John Kerry, D-Massachusetts, who uncovered more drug connections implicating the Contras and the Reagan administration.

Only occasionally, such as when the George H.W. Bush administration needed witnesses to convict Panamanian dictator Manuel Noriega did the Contra-cocaine evidence pop onto Official Washington’s radar.

During Noriega’s drug-trafficking trial in 1991, U.S. prosecutors called as a witness Colombian Medellín cartel kingpin Carlos Lehder, who — along with implicating Noriega — testified that the cartel had given $10 million to the Contras, an allegation first unearthed by Sen. Kerry. “The Kerry hearings didn’t get the attention they deserved at the time,” a Washington Post editorial on Nov. 27, 1991, acknowledged. “The Noriega trial brings this sordid aspect of the Nicaraguan engagement to fresh public attention.”

But the Post offered its readers no explanation for why Kerry’s hearings had been largely ignored, with the Post itself a leading culprit in this journalistic misfeasance. Nor did the Post and the other leading newspapers use the opening created by the Noriega trial to do anything to rectify their past neglect.

Everything quickly returned to the status quo in which the desired perception of the noble Contras trumped the clear reality of their criminal activities. Instead of recognizing the skewed moral compass of the Reagan administration, Congress was soon falling over itself to attach Reagan’s name to as many public buildings and facilities as possible, including Washington’s National Airport.

Meanwhile, those of us in journalism who had exposed the national security crimes of the 1980s saw our careers mostly sink or go sideways. We were regarded as “pariahs” in our profession.

As for me, shortly after the Iran-Contra scandal broke wide open in fall 1986, I accepted a job at Newsweek, one of the many mainstream news outlets that had long ignored Contra-connected scandals and briefly thought it needed to bolster its coverage. But I soon discovered that senior editors remained hostile toward the Iran-Contra story and related spinoff scandals, including the Contra-cocaine mess.

After losing battle after battle with my Newsweek editors, I departed the magazine in June 1990 to write a book (called Fooling America) about the decline of the Washington press corps and the parallel rise of a new generation of government propagandists.

I was also hired by PBS Frontline to investigate whether there had been a prequel to the Iran-Contra scandal — whether those arms-for-hostage deals in the mid-1980s had been preceded by contacts between Reagan’s 1980 campaign staff and Iran, which was then holding 52 Americans hostage and essentially destroying Jimmy Carter’s reelection hopes. [For more on that topic, see Robert Parry’s Secrecy & Privilege and America’s Stolen Narrative.]

Finding New Ways

In 1995, frustrated by the growing triviality of American journalism — and acting on the advice of and with the assistance of my oldest son Sam — I turned to a new medium and launched the Internet’s first investigative news magazine, known as Consortiumnews.com. The Web site became a way for me to put out well-reported stories that my former mainstream colleagues ignored or mocked.

So, when Gary Webb called me in 1996 to talk about the Contra-cocaine story, I explained some of this tortured history and urged him to make sure that his editors were firmly behind him. He sounded perplexed at my advice and assured me that he had the solid support of his editors.

When Webb’s “Dark Alliance” series finally appeared in late August 1996, it initially drew little attention. The major national news outlets applied their usual studied indifference to a topic that they had already judged unworthy of serious attention.

But Webb’s story proved hard to ignore. First, unlike the work that Barger and I did for AP in the mid-1980s, Webb’s series wasn’t just a story about drug traffickers in Central America and their protectors in Washington. It was about the on-the-ground consequences, inside the United States, of that drug trafficking, how the lives of Americans were blighted and destroyed as the collateral damage of a U.S. foreign policy initiative.

In other words, there were real-life American victims, and they were concentrated in African-American communities. That meant the ever-sensitive issue of race had been injected into the controversy. Anger from black communities spread quickly to the Congressional Black Caucus, which started demanding answers.

Secondly, the San Jose Mercury-News, which was the local newspaper for Silicon Valley, had posted documents and audio on its state-of-the-art Internet site. That way, readers could examine much of the documentary support for the series.

It also meant that the traditional “gatekeeper” role of the major newspapers — the New York Times, the Washington Post, and the Los Angeles Times — was under assault. If a regional paper like the Mercury-News could finance a major journalistic investigation like this one, and circumvent the judgments of the editorial boards at the Big Three, then there might be a tectonic shift in the power relations of the U.S. news media. There could be a breakdown of the established order.

This combination of factors led to the next phase of the Contra-cocaine battle: the “get-Gary-Webb” counterattack. Soon, the Washington Post, the New York Times, and the Los Angeles Times were lining up like some tag-team wrestlers taking turns pummeling Webb and his story.

On Oct. 4, 1996, the Washington Post published a front-page article knocking down Webb’s series, although acknowledging that some Contra operatives did help the cocaine cartels. The Post’s approach fit with the Big Media’s cognitive dissonance on the topic: first, the Post called the Contra-cocaine allegations old news — “even CIA personnel testified to Congress they knew that those covert operations involved drug traffickers,” the Post said — and second, the Post minimized the importance of the one Contra smuggling channel that Webb had highlighted in his series, saying it had not “played a major role in the emergence of crack.”

To add to the smug hoo-hah treatment that was enveloping Webb and his story, the Post published a sidebar story dismissing African-Americans as prone to “conspiracy fears.”

Next, the New York Times and the Los Angeles Times weighed in with lengthy articles castigating Webb and “Dark Alliance.” The big newspapers made much of the CIA’s internal reviews in 1987 and 1988 — almost a decade earlier — that supposedly had cleared the spy agency of any role in Contra-cocaine smuggling.

But the first ominous sign for the CIA’s cover-up emerged on Oct. 24, 1996, when CIA Inspector General Frederick Hitz conceded before the Senate Intelligence Committee that the first CIA probe had lasted only12 days, and the second only three days. He promised a more thorough review.

Mocking Webb

But Webb had already crossed over from being treated as a serious journalist to becoming a target of ridicule. Influential Washington Post media critic Howard Kurtz mocked Webb for saying in a book proposal that he would explore the possibility that the Contra war was primarily a business to its participants. “Oliver Stone, check your voice mail,” Kurtz smirked.

Yet, Webb’s suspicion was no conspiracy theory. Indeed, Oliver North’s chief Contra emissary, Rob Owen, had made the same point in a March 17, 1986 message about the Contra leadership. “Few of the so-called leaders of the movement . . . really care about the boys in the field,” Owen wrote. “THIS WAR HAS BECOME A BUSINESS TO MANY OF THEM.” [Emphasis in original.]

Ainsworth and other pro-Contra activists were reaching the same conclusion, that the Contra leadership was skimming money from the supply lines and padding their personal wealth with proceeds from the drug trade. According to a Jan. 21, 1987 interview report by the FBI, Ainsworth said he had “made inquiries in the local San Francisco Nicaraguan community and wondered among his acquaintances what Adolfo Calero and the other people in the FDN movement were doing and the word that he received back is that they were probably engaged in cocaine smuggling.”

In other words, Webb was right about the suspicion that the Contra movement had become less a cause than a business to many of its participants. Even Oliver North’s emissary reported on that reality. But truthfulness had ceased to be relevant in the media’s hazing of Gary Webb.

In another double standard, while Webb was held to the strictest standards of journalism, it was entirely all right for Kurtz — the supposed arbiter of journalistic integrity who was a longtime fixture on CNN’s “Reliable Sources” — to make judgments based on ignorance. Kurtz would face no repercussions for mocking a fellow journalist who was factually correct.

The Big Three’s assault — combined with their disparaging tone — had a predictable effect on the executives of the Mercury-News. As it turned out, Webb’s confidence in his editors had been misplaced. By early 1997, executive editor Jerry Ceppos, who had his own corporate career to worry about, was in retreat.

On May 11, 1997, Ceppos published a front-page column saying the series “fell short of my standards.” He criticized the stories because they “strongly implied CIA knowledge” of Contra connections to U.S. drug dealers who were manufacturing crack cocaine. “We did not have enough proof that top CIA officials knew of the relationship,” Ceppos wrote.

Ceppos was wrong about the proof, of course. At AP, before we published our first Contra-cocaine article in 1985, Barger and I had known that the CIA and Reagan’s White House were aware of the Contra-cocaine problem at senior levels. One of our sources was on Reagan’s National Security Council staff.

However, Ceppos recognized that he and his newspaper were facing a credibility crisis brought on by the harsh consensus delivered by the Big Three, a judgment that had quickly solidified into conventional wisdom throughout the major news media and inside Knight-Ridder, Inc., which owned the Mercury-News. The only career-saving move – career-saving for Ceppos even if career-destroying for Webb – was to jettison Webb and the Contra-cocaine investigative project.

A ‘Vindication’

The big newspapers and the Contras’ defenders celebrated Ceppos’s retreat as vindication of their own dismissal of the Contra-cocaine stories. In particular, Kurtz seemed proud that his demeaning of Webb now had the endorsement of Webb’s editor. Ceppos next pulled the plug on the Mercury-News’ continuing Contra-cocaine investigation and reassigned Webb to a small office in Cupertino, California, far from his family. Webb resigned from the paper in disgrace. [See Consortiumnews.com’s Hung Out to Dry.]

For undercutting Webb and other Mercury News reporters working on the Contra-cocaine project – some of whom were facing personal danger in Central America – Ceppos was lauded by the American Journalism Review and received the 1997 national Ethics in Journalism Award by the Society of Professional Journalists.

While Ceppos won raves, Webb watched his career collapse and his marriage break up. Still, Gary Webb had set in motion internal government investigations that would bring to the surface long-hidden facts about how the Reagan administration had conducted the Contra war.

The CIA published the first part of Inspector General Hitz’s findings on Jan. 29, 1998. Though the CIA’s press release for the report criticized Webb and defended the CIA, Hitz’s Volume One admitted that not only were many of Webb’s allegations true but that he actually understated the seriousness of the Contra-drug crimes and the CIA’s knowledge of them.

Hitz conceded that cocaine smugglers played a significant early role in the Contra movement and that the CIA intervened to block an image-threatening 1984 federal investigation into a San Francisco–based drug ring with suspected ties to the Contras, the so-called “Frogman Case.”

After Volume One was released, I called Webb (whom I had spent some time with since his series was published). I chided him for indeed getting the story “wrong.” He had understated how serious the problem of Contra-cocaine trafficking had been, I said.

It was a form of gallows humor for the two of us, since nothing had changed in the way the major newspapers treated the Contra-cocaine issue. They focused only on the press release that continued to attack Webb, while ignoring the incriminating information that could be found in the full report. All I could do was highlight those admissions at Consortiumnews.com, which sadly had a much, much smaller readership than the Big Three.

The major U.S. news media also looked the other way on other startling disclosures.

On May 7, 1998, for instance, Rep. Maxine Waters, a California Democrat, introduced into the Congressional Record a Feb. 11, 1982 letter of understanding between the CIA and the Justice Department. The letter, which had been requested by CIA Director William Casey, freed the CIA from legal requirements that it must report drug smuggling by CIA assets, a provision that covered the Nicaraguan Contras and the Afghan mujahedeen.

In other words, early in those two covert wars, the CIA leadership wanted to make sure that its geopolitical objectives would not be complicated by a legal requirement to turn in its client forces for drug trafficking.

Justice Denied

The next break in the long-running Contra-cocaine cover-up was a report by the Justice Department’s Inspector General Michael Bromwich. Given the hostile climate surrounding Webb’s series, Bromwich’s report also opened with criticism of Webb. But, like the CIA’s Volume One, the contents revealed new details about serious government wrongdoing.

According to evidence cited by Bromwich, the Reagan administration knew almost from the outset of the Contra war that cocaine traffickers permeated the paramilitary operation. The administration also did next to nothing to expose or stop the crimes. Bromwich’s report revealed example after example of leads not followed, corroborated witnesses disparaged, official law-enforcement investigations sabotaged, and even the CIA facilitating the work of drug traffickers.

The report showed that the Contras and their supporters ran several parallel drug-smuggling operations, not just the one at the center of Webb’s series. The report also found that the CIA shared little of its information about Contra drugs with law-enforcement agencies and on three occasions disrupted cocaine-trafficking investigations that threatened the Contras.

As well as depicting a more widespread Contra-drug operation than Webb (or Barger and I) had understood, the Justice Department report provided some important corroboration about Nicaraguan drug smuggler Norwin Meneses, a key figure in Gary Webb’s series and Adolfo Calero’s friend as described by Dennis Ainsworth.

Bromwich cited U.S. government informants who supplied detailed information about Meneses’s drug operation and his financial assistance to the Contras. For instance, Renato Pena, the money-and-drug courier for Meneses, said that in the early 1980s the CIA allowed the Contras to fly drugs into the United States, sell them, and keep the proceeds. Pena, the FDN’s northern California representative, said the drug trafficking was forced on the Contras by the inadequate levels of U.S. government assistance.

The Justice Department report also disclosed repeated examples of the CIA and U.S. embassies in Central America discouraging DEA investigations, including one into Contra-cocaine shipments moving through the international airport in El Salvador. Bromwich said secrecy trumped all. “We have no doubt that the CIA and the U.S. Embassy were not anxious for the DEA to pursue its investigation at the airport,” he wrote.

Bromwich also described the curious case of how a DEA pilot helped a CIA asset escape from Costa Rican authorities in 1989 after the man, American farmer John Hull, had been charged in connection with Contra-cocaine trafficking. [See Consortiumnews.com’s “John Hull’s Great Escape.”]

Hull’s ranch in northern Costa Rica had been the site of Contra camps for attacking Nicaragua from the south. For years, Contra-connected witnesses also said Hull’s property was used for the transshipment of cocaine en route to the United States, but those accounts were brushed aside by the Reagan administration and disparaged in major U.S. newspapers.

Yet, according to Bromwich’s report, the DEA took the accounts seriously enough to prepare a research report on the evidence in November 1986. One informant described Colombian cocaine off-loaded at an airstrip on Hull’s ranch.

The drugs were then concealed in a shipment of frozen shrimp and transported to the United States. The alleged Costa Rican shipper was Frigorificos de Puntarenas, a firm controlled by Cuban-American Luis Rodriguez. Like Hull, however, Frigorificos had friends in high places. In 1985-86, the State Department had selected the shrimp company to handle $261,937 in non-lethal assistance earmarked for the Contras.

Hull also remained a man with powerful protectors. Even after Costa Rican authorities brought drug charges against him, influential Americans, including Rep. Lee Hamilton, D-Indiana, demanded that Hull be let out of jail pending trial. Then, in July 1989 with the help of a DEA pilot – and possibly a DEA agent – Hull managed to fly out of Costa Rica to Haiti and then to the United States.

Despite these startling new disclosures, the big newspapers still showed no inclination to read beyond the criticism of Webb in the press release.

Major Disclosures

By fall 1998, Washington was obsessed with President Bill Clinton’s Monica Lewinsky sex scandal, which made it easier to ignore even more stunning Contra-cocaine disclosures in the CIA’s VolumeTwo, published on Oct. 8, 1998.

In the report, CIA Inspector General Hitz identified more than 50 Contras and Contra-related entities implicated in the drug trade. He also detailed how the Reagan administration had protected these drug operations and frustrated federal investigations throughout the 1980s.

According to Volume Two, the CIA knew the criminal nature of its Contra clients from the start of the war against Nicaragua’s leftist Sandinista government. The earliest Contra force, called the Nicaraguan Revolutionary Democratic Alliance (ADREN) or the 15th of September Legion