by skyhook77sfg » Thu Mar 10, 2011 5:12 pm
some additional background on the shadow govt types who helped arrange the sunday school president's removal as an obstacle to their aims by john simkin....
John McCloy developed a close relationship with Mohammad Reza Pahlavi (Shah of Iran), who gained power in Iran during the Second World War. McCloy's legal firm, Milbank, Tweed, Hadley & McCloy, provided legal counsel to Pahlavi. The Chase International Investment Corporation, which McCloy established in the 1950s, had several joint ventures in Iran.
McCloy was also chairman of the Chase Manhattan Bank. Pahlavi had a personal account with the bank. So also did his private family trust, the Pahlavi Foundation. Kai Bird (The Chairman: John J. McCloy: The Making of the American Establishment) has argued: "Each year, the bank handled some $2 billion in Iranian Eurodollar transactions, and throughout the 1970s Iran had at least $6 billion on deposit at various branches around the world." As one financial commentator pointed out: "Iran became the crown jewel of Chase's international banking portfolio."
In January 1978, mass demonstrations took place in Iran. McCloy became concerned that Mohammad Reza Pahlavi would be overthrown. This was a major problem as outstanding loans to the regime amounted to over $500 million. McCloy went to see Robert Bowie, deputy director of the CIA. Bowie, who had just returned from Iran, was convinced that the communist Tudeh Party was behind the protests and were guilty of manipulating the Fedayeen and Mujahadeen. Over the next few months, McCloy organized a campaign to persuade President Jimmy Carter to protect the regime. This included David Rockefeller, Nelson Rockefeller and Henry Kissinger making deputations to the administration.
Despite the fact that Iranian troops had killed over 10,000 demonstrators during the disturbances, on 12th December, 1978, President Carter issued a statement saying: "I fully expect the Shah to maintain power in Iran... I think the predictions of doom and disaster that come from some sources have certainly not been realized at all. The Shah has our support and he also has our confidence."
The following month Mohammad Reza Pahlavi fled the country and on 1st February, 1979, Ayatollah Khomeini returned from exile to form a new government.
McCloy asked President Jimmy Carter to allow the Shah to live in the United States. Carter refused because he had told by his diplomats in Iran that such a decision might encourage the embassy being stormed by mobs. As a result McCloy made preparations for the Shah to stay in the Bahamas. David Rockefeller arranged for his personal assistant at Chase Manhattan, Joseph V. Reed, to manage the Shah's finances.
Rockefeller also established the highly secret, Project Alpha. The main objective was to persuade Carter to provide a safe haven for Mohammad Reza Pahlavi (code-named "Eagle"). McCloy, Rockefeller and Kissinger were referred to as the "Triumvirate". Rockefeller used money from Chase Manhattan Bank to pay employees of Milbank, Tweed, Hadley & McCloy who worked on the project. Some of this money was used to persuade academics to write articles defending the record of Pahlavi. For example, George Lenczowski, professor emeritus at the University of California, was paid $40,000 to write a book with the "intention to answer the shah's critics".
Kissinger telephoned Zbigniew Brzezinski, National Security Advisor to Carter, on 7th April, 1979, and berated the president for his emphasis on human rights, which he considered to be "amateurish" and "naive". Brzezinski suggested he talked directly to Carter. Kissinger called Carter and arranged for him to meet David Rockefeller, two days later. Gerald Ford also contacted Carter and urged him to "stand by our friends".
McCloy, Rockefeller and Kissinger arranged for conservative journalists to mount an attack on Carter over this issue. On 19th April, George Will wrote about Carter and the Shah and said; "It is sad that an Administration that knows so much about morality has so little dignity."
On 19th April, Rosalynn Carter wrote in her diary: We can't get away from Iran. Many people - Kissinger, David Rockefeller, Howard Baker, John McCloy, Gerald Ford - all are after Jimmy to bring the shah to the United States, but Jimmy says it's been too long, and anti-American and anti-shah sentiments have escalated so that he doesn't want to. Jimmy said he explained to all of them that the Iranians might kidnap our Americans who are still there."
McCloy had meetings with President Carter in the White House on 16th May and 12th June where he outlined his reasons for providing the Shah with sanctuary. Carter listened politely to his arguments but refused to change his mind.
During the summer of 1979 McCloy contacted Zbigniew Brzezinski, Cyrus Vance, Walter Mondale and Dean Rusk about the Shah being allowed to live in the United States. McCloy told them that Carter's refusal to provide sanctuary to an old U.S. ally was "ungentlemanly" and dismissed the idea that lives in Iran might be jeopardized. Vance later recalled that: "John (McCloy) is a very prolific letter writer. The morning mail often contained something from him about the Shah".
In July 1979, Mondale and Brzezinski told Jimmy Carter that they had changed their minds and now supported asylum for the Shah. Carter replied: "F*** the Shah. I'm not going to welcome him here when he has other places to go where he'll be safe." He added that despite the fact that "Kissinger, Rockefeller and McCloy had been waging a constant campaign on the subject" he did not want the Shah "here playing tennis while Americans in Teheran were being kidnapped or even killed."
McCloy then tried another tactic in order to destabilize Carter's administration. In September, a story was leaked that the CIA had "discovered" a Soviet combat brigade in Cuba. It was claimed that this violated the agreement reached during the Cuban Missile Crisis. McCloy, who had negotiated the agreement with Adlai Stevenson and the Soviets in 1962, knew this was not true. The agreement said that only those Soviet troops associated with the missiles had to leave the island. There was never a complete ban on all Soviet troops in Cuba. Therefore the presence of Soviet combat troops in Cuba was not a violation of the 1962 agreement.
In October, 1979, David Rockefeller's assistant, Joseph Reed, called the State Department and claimed that the Shah had cancer and needed immediate treatment in a U.S. medical facility. Cyrus Vance now told Carter that the Shah should be allowed in as a matter of "common decency". Carter's chief of staff, Hamilton Jordon, argued that if the Shah died outside the United States, Kissinger and his friends would say "that first you caused the Shah's downfall and now you've killed him." Carter replied: "What are you guys going to advise me to do if they overrun our embassy and take our people hostage?"
Faced with the now unanimous opposition of his closest advisers, the president reluctantly agreed to admit the Shah. He arrived at New York Hospital on 22nd October, 1979. Joseph Reed circulated a memo to McCloy and other members of Project Alpha: "Our mission impossible is completed. My applause is like thunder." Less than two weeks later, Iranian militants stormed the U.S. Embassy in Teheran and took hostage 66 Americans.
McCloy now persuaded Jimmy Carter to freeze all Iran's assets in the United States. This was the day before Iran's $4.05 million interest payment was due on its $500 million loan. As this was not now paid, Chase Manhattan Bank announced that the Iranian government was in default. The bank was now allowed to seize all of Iran's Chase accounts and used this money to "offset" any outstanding Iranian loans. In fact, by the end of this process, the bank ended up in profit from the deal.
Is it possible that Project Alpha was really about creating a situation where Chase Manhattan could seize Iranian assets rather than to get the Shah into the United States.