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Trump to pardon notorious drug kingpin Juan Orlando Hernandez
Hazelton Federal Correctional Complex, where Whitey Bulger was killed, reportedly is known as the second deadliest prison in the country.
Trump to pardon notorious drug kingpin Juan Orlando Hernandez
Former president of Honduras, Juan Orlando Hernandez to receive corrupt Trump pardon from Hazelton Federal Correctional Complex
By Lynda Carson - November 30, 2025
According to a news report from the BBC, in part it says, “Juan Orlando Hernández was sentenced to 45 years in prison for drug trafficking and firearms offenses. Donald Trump has said that he will pardon the former president of Honduras, Juan Orlando Hernández, who was convicted of drug trafficking charges in a US court last year. The US president said Hernández had been "treated very harshly and unfairly" in a social media post announcing the move on Friday. Hernández was found guilty in March 2024 of conspiring to import cocaine into the US, and of possessing machine guns. He was sentenced to 45 years in prison.”
The convicted felon President Trump has made the news repeatedly for illegally blowing up boats in the water that he claims are drug dealers, without offering any proof. Us military personnel have been reminded that they do not have to follow any unlawful or illegal orders, and that has upset the convicted felon in the White House to extremes.
Note: US troops https://www.indybay.org/newsitems/2016/09/07/18790947.php were deeply involved in trafficking of heroin and opium in Afghanistan. Report, from KABUL - Opium addiction - 2007.
“Barbosa said the next challenge will be high
addiction levels, especially among returnees from Iran and
the ethnic Turkmen community in Jowzan and Faryab provinces.
Children as young as five are addicted, as a result of their
mothers blowing opium smoke into their faces to calm them
down or licking their hands while they harvest resin from the
poppy flowers. Doctors report they must travel to homes to
provide care, as addicts are too embarrassed to come to the
medical clinic to seek help.”
News Headlines for Drug Trafficking Kingpins:
Click below…
https://news.google.com/search?q=drug%20trafficking%20kingpins&hl=en-US&gl=US&ceid=US%3Aen
Drug Kingpin Juan Orlando Hernandez.
According to public records, Juan Orlando Hernandez, age 57, white male, register number: 91441-054, is a federal inmate located at Hazelton United States Prison, in West, Virginia, with a release date of 6/19/2060. Hazelton Federal Correctional Complex, where Whitey Bulger was killed, reportedly is known as the second deadliest prison in the country.
Reportedly, “Hernández hired lobby firm BGR group for $660,000. - Secretary Rubio has been one of the top recipients in campaign contributions from BGR, and may have helped to get a pardon for Hernandez.”
According to the website for the Department of Justice, in a big headline, in part it says, “Juan Orlando Hernández, Former President of Honduras, Sentenced to 45 Years in Prison for Conspiring to Distribute More Than 400 Tons of Cocaine and Related Firearms Offenses.”
That’s right. This is a bad hombre https://en.wikipedia.org/wiki/Juan_Orlando_Hern%C3%A1ndez , convicted of trafficking tons of cocaine and firearms. Just the sort of guy you would expect the convicted felon President Trump to pardon, when considering the 1,500 or so January 6 federal criminals he pardoned, that attacked the Capitol building in an effort to overturn the election on behalf of Trump.
Convicted felon President Trump makes the DOJ look stupid for going after drug kingpin Juan Orlando Hernandez, meanwhile notorious drug kingpin Joaquin "El Chapo" Guzman has sued the federal Supermax prison in Colorado where he resides over “torture” conditions.
Juan Orlando Hernández To Be Pardoned By Convicted Felon President Trump.
The June 26, 2024, DOJ release in part also says, “Hernández Conspired with Some of the Largest Drug Traffickers in the World to Transport Tons of Cocaine through Honduras to the United States.
The former president of Honduras, Juan Orlando Hernández, 55, also known as JOH, was sentenced today to 540 months in prison and 60 months of supervised release for cocaine importation and related weapons offenses. The former two-term president was in office until weeks before his extradition to the United States in April 2022. Hernández was convicted on March 8 following a three-week jury trial.
“As President of Honduras, Juan Orlando Hernández abused his power to support one of the largest and most violent drug trafficking conspiracies in the world, and the people of Honduras and the United States bore the consequences,” said Attorney General Merrick B. Garland. “Thanks to the diligent work of the Justice Department’s agents and prosecutors, Hernández will now spend more than four decades in prison. The Justice Department will hold accountable all those who engage in violent drug trafficking, regardless of how powerful they are or what position they hold.”
“The Drug Enforcement Administration (DEA) is relentlessly focused on dismantling drug trafficking organizations that threaten the safety and health of the American people,” said DEA Administrator Anne Milgram. “Former Honduran President Juan Orlando Hernández financed his political career with drug trafficking profits and abused his authority as President of Honduras to traffic hundreds of tons of cocaine to the United States. Let me be clear, political actors who use their power to traffic in drugs and corruption will be brought to justice in the United States.”
“As the former two-term president of Honduras, Juan Orlando Hernández had every opportunity to affect positive change for his country," said U.S. Attorney Damian Williams for the Southern District of New York. "Instead, Hernández helped to facilitate the importation of an almost unfathomable 400 tons of cocaine to this country: billions of individual doses sent to the United States with the protection and support of the former president of Honduras. Now, after years of destructive narco-trafficking of the highest imaginable magnitude, Hernández will spend 45 years where he belongs: in federal prison.”
According to court documents, from at least in or about 2004, up to and including in or about 2022, Hernández, the former two-term president of Honduras and former president of the Honduran National Congress, was at the center of one of the largest and most violent drug-trafficking conspiracies in the world. During his political career, Hernández abused his powerful positions and authority in Honduras to facilitate the importation of over 400 tons of cocaine into the U.S. Hernández’s co-conspirators were armed with machine guns and destructive devices, including AK-47s, AR-15s, and grenade launchers, which they used to protect their massive cocaine loads as they transited across Honduras on their way to the United States, protect the money they made from the eventual sale of this cocaine, and guard their drug-trafficking territory from rivals. Hernández received millions of dollars of drug money from some of the largest and most violent drug-trafficking organizations in Honduras, Mexico, and elsewhere, and used those bribes to fuel his rise in Honduran politics. In turn, as Hernández rose to power in Honduras, he provided increased support and protection for his co-conspirators, allowing them to move mountains of cocaine, commit acts of violence and murder, and help turn Honduras into one of the most dangerous countries in the world.
During his time in office, Hernández publicly promoted legislation and the efforts he purported to undertake in support of anti-narcotics measures in Honduras. At the same time, he protected and enriched the drug traffickers in his inner circle and those who provided him with cocaine-fueled bribes that allowed him to obtain and stay in power in Honduras. For example, Hernández selectively upheld extraditions by supporting and taking credit for extraditions to the United States of certain drug traffickers who threatened his grip on power, while at the same time promising drug traffickers who bribed him and followed his instructions that they would remain safe in Honduras. In addition, Hernández and his co-conspirators abused Honduran institutions, including the Honduran National Police and Honduran military, to protect and grow their conspiracy. Among other things, members of the conspiracy used heavily armed Honduran National Police officers to protect their cocaine loads as they transited through Honduras towards the United States for eventual distribution. Members of the conspiracy also turned to violence and murder to protect and grow their drug trafficking enterprise, attacking and murdering rival traffickers and those who threatened their grip on the Honduran cocaine trade.
Several of Hernández’s co-conspirators have already been convicted and sentenced in connection with this investigation. Among others, Hernández’s brother, Juan Antonio Hernández Alvarado, also known as Tony Hernández, was convicted after trial in October 2019 and sentenced to life in prison, and Geovanny Fuentes Ramirez, a violent cocaine trafficker who met with Hernández on multiple occasions to discuss their drug trafficking partnership, was convicted after trial in March 2021 and sentenced to life in prison. Juan Carlos Bonilla Valladares, also known as El Tigre, the former chief of the Honduran National Police, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on Aug. 1, and Mauricio Hernández Pineda, a former member of the Honduran National Police and Hernández’s cousin, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on July 2.
In total, Hernández and his co-conspirators trafficked more than 400 tons of U.S.-bound cocaine through Honduras during Hernández’s tenure in the Honduran government. This amounts to well over approximately 4.5 billion individual doses of cocaine.
The DEA investigated the case.
The Justice Department’s Office of International Affairs provided valuable assistance in securing Hernández’s arrest and extradition.
Trial Attorneys Andrea Broach and Jessica Fender of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Jacob H. Gutwillig, David J. Robles, Elinor L. Tarlow, and Kyle A. Wirshba for the Southern District of New York prosecuted the case.”
As far back as 2003, Juan Orlando Hernandez was known for his involvement in drug trafficking in Honduras. Reportedly, “Josías Aguilar, an attorney who had previously worked as a detective in two operations against the Valle Valle Cartel at the age of 21, exposed the connections between the drug trade and siblings Tony and Juan Orlando Hernandez. While working for the Attorney General’s Office, Aguilar brought to light the former president’s connections to drug trafficking and reported it to his supervisor, Soraya Cálix, as well as the outgoing Attorney General, Óscar Fernando Chinchilla. This story narrates everything that the Public Ministry failed to do over a decade against the Honduran narco-state.”
More about drug trafficking in Honduras.
According to a December 31, 1975 report called,
NARCOTICS ACTIVITIES IN HONDURAS.
In part it says, “BEGIN SUMMARY: CHIEF OF HONDURAN INVESTIGATIVE POLICE
SERIOUSLY CONCERNED AT INCREASE IN NARCOTICS TRAFFIC TO
AND THROUGH HONDURAS. HE DESIRES INCREASE COORDINATION
WITH DEA AND CENTRAL AMERICAN COUNTERPARTS AND REQUESTS
U.S. ASSISTANCE FOR TRAINING. END SUMMARY.
EMBASSY NARCOTICS COORDINATOR DISCUSSED LOCAL
NARCOTICS SITUATION WITH MAJOR ENRIQUE TAYLOR CALDERINI,
CHIEF OF DIRECTION DE INVESTIGACION NACIONAL (DIN) THE
HONDURAN CRIMINAL INVESTIGATION AGENCY OF THE NATIONAL
POLICE (FUSEP). TAYLOR FORCEFULLY EXPRESSED CONCERN
THAT ILLICIT DRUG TRAFFICKING WAS INCREASING IN HONDURAS.
HE BELIEVES THAT SIGNIFICANT AMOUNTS OF COCAINE AND MARI-
JUANA ARE PASSING THROUGH HONDURAS FROM SOUTH AMERICA TO
THE UNITED STATES RESULTING ALSO IN GREATER USE OF THESE
DRUGS LOCALLY. HE SAID LOCAL MARIJUANA USERS ARE TURNING
TO OUTSIDE SOURCES COMPLAINING HOME-GROWN GRASS NOT SUF-
FICIENTLY STRONG. POLICE HAVE ALSO RECENTLY UNCOVERED
FIRST KNOWN LOCAL USE OF HASHISH.
TAYLOR BLAMES COLUMBIANS AND CHILEANS LINKED WITH "MAFIA"
FOR INCREASED TRAFFICKING, BUT ALSO BELIEVES SOME U.S. CITI-
ZENS MAY BE INVOLVED, PARTICULARLY IN BAY ISLANDS AREA.
TAYLOR INDICATED STRONG DESIRE TO INCREASE COORDINATION
WITH DEA POINTING OUT THAT HIS AGENCY'S RESOURCES IN BOTH
MANPOWER AND MONEY ARE VERY LIMITED. HE PARTICULARLY WOULD
LIKE DEA ASSISTANCE IN TRAINING HIS PERSONNEL. HE WAS RE-
SPONSIVE TO EMBOFF'S COMMENTS ON POSSIBILITY OF FUTURE
CENTRAL AMERICAN REGIONAL TRAINING COURSE AND RECOGNIZED
DESIRABILITY OF CLOSER COORDINATION WITH OTHER CENTRAL AMERICAN
POLICE AGENCIES, HOWEVER, HE OBVIOUSLY WOULD PREFER AN IN-
COUNTRY TRAINING PROGRAM FOR A LARGER NUMBER OF AGENTS.
HE EMPHASIZED THE NEED FOR LEARNING "EMPIRICAL" SKILLS
SUCH AS STREET LEVEL IDENTIFICATION OF ILLICIT SUBSTANCES
RATHER THAN MORE SOPHISTICATED TRAINING. HE EXPRESSED DIS-
APPOINTMENT THAT PREVIOUS HONDURAN PARTICIPANTS IN U.S.
TRAINING PROGRAMS HAVE NOT BEEN SUCCESSFUL IN CONSTRUCTING
LOCAL TRAINING PROGRAMS TO PASS ON WHAT THEY LEARNED.
TAYLOR ALSO EXPRESSED NEED FOR ASSISTANCE IN ESTABLISH-
ING A CRIMINAL LABORATORY CAPABLE OF ANALYSING AND
IDENTIFYING ILLICIT DRUGS.
COMMENT: TAYLOR'S CONCERN QUITE GENUINE ALTHOUGH
WHETHER IT REFLECTS INCREASE IN TRAFFICKING OR INCREASED
POLICE AWARENESS OF TRAFFICKING DEBATABLE. EMBASSY CON-
CURS IN NEED FOR U.S. ASSISTANCE IN TRAINING LOCAL NAR-
COTICS AGENTS AND STRONLY SUPPORTS IDEA OF REGIONAL
COURSE AS SUGGESTED IN REFTEL. LABORATORY EQUIPMENT IS
PERENNIAL REQUEST WHICH EMBASSY DOES NOT SUPPORT IN
VIEW ACCESSIBILITY TO ADEQUATE LABORATORY FACILITIES
THROUGH OTHER GOH AGENCIES. EMBASSY HOPES DEA CAN IN-
CREASE THEIR COOPERATION WITH DIN, PLACING GREATER
EMPHASIS AT PRESENT ON TRAINING AND INSTITUTION BUILDING
THAN ON OPERATIONS.”
In a June 26, 2003 report called, MEDIA REACTION ON DRUG TRAFFICKING, JUNE 26, 2003.
In part it says, “Article in Tegucigalpa-based liberal daily "La Tribuna"
on 6/26 entitled "U.S. Ambassador doesn't see results
against narcos." "U.S. Ambassador Larry Palmer affirmed that
his government, just like the rest of Hondurans, expects to
see positive results in the fight against narco-
trafficking."
"The Ambassador stated, `We want results: drug seizures,
arrests of narco traffickers and convictions for those
responsible of such acts. we are deeply concerned with the
recent rise of organized crime and narco trafficking'."
"He added, `More than a year ago, the Embassy received an
anonymous report that gives names of many people linked to
narco-trafficking and organized crime. We'd like to see a
thorough investigation by the Honduran authorities to find
out whether those allegations are true or not; the Honduran
people are entitled to know'."
"Concerning the arrest of Cesar Diaz, the Honduran member of
the Central American Parliament who was arrested in
Nicaragua with 7 kilos of heroin, he declared `it is more
important what comes after his apprehension. I hope the
Honduran authorities do their best to penalize rigorously
those responsible for narco-trafficking'."
Article in San Pedro Sula-based liberal daily "La Prensa"
on 6/26 entitled "The U.S. demands the maximum penalty for
narcos". "U.S. Ambassador Larry Palmer sent a clear
challenge to the Judicial branch, the police and the General
Attorney's Office: seize more drugs and penalize drug
traffickers with the maximum penalty."
"In a press conference, Palmer affirmed, `The police and the
General Attorney Office's are responsible for finding out
the whereabouts of narco-traffickers. We expect positive
results from their task'."
"About the arrest of Congressman Cesar Diaz, the Ambassador
stated that the behavior of one person can't affect the
image of the whole country. He declared that the important
thing is that those guilty of these crimes must be severely
punished by law."
Article in "La Tribuna" on 6/26 entitled "U.S. aid is
only enough for their advisors". "The coordinator of
prosecutors of the Attorney General Office, Humberto
Palacios Moya, said that they will only keep arresting minor
users of marijuana and cocaine if the U.S. doesn't help to
improve their logistical structures."
"Palacios affirmed, `The anti-narcotics police has only 29
agents for the whole country, we have said this to the
National Congress and the U.S. Embassy but their answer is
that they have given enough money for the fight against
drugs. what the Americans do not say is that their money
mainly goes to the DEA advisors and other international
organizations'."
Article in "La Tribuna" on 6/26 entitled "The Attorney
General's Office is also infiltrated". "Alfredo Landaverde,
former Executive Director of the National Council against
Narco Trafficking, challenged governmental authorities to
categorically face narco-trafficking, one of the most
dangerous branches of organized crime."
"Concerning the infiltration of organized crime in the
country's security forces, he emphatically affirmed, `many
policemen have personally told me they are afraid of some of
their colleagues because they know they work for criminal
organizations. Honduras has a few good prosecutors, judges
and policemen determined to fight against organized crime
but beside them, we can also find infiltrated officials'."
"He added, `I know they will call me once again to confirm
those accusations. Then, I guess they will also call the
U.S. embassy's DCM Roger Pierce for saying that as well'."
Article in "La Tribuna" on 6/26 entitled "Four Colombians
are arrested in narco plane case". "Four Colombians and two
Hondurans were arrested and accused for being tied with the
narco organizations operating in the region of Colon, which
recently burned and destroyed a plane that was used to
transport 500 kilos of cocaine, apparently from Colombia".
Article in "La Prensa" on 6/26 entitled "Maduro asks the
U.S. for help". "President Maduro stated that the fight
against drug trafficking is much more difficult for a poor
country like Honduras, and `that is why I'm asking the U.S.
which has always been an extraordinary ally, to increase its
support on this issue. this campaign requires a lot of money
and we need the help of a big country like the U.S.'."
"Maduro declared, the fight against drug trafficking
demands sophisticated equipment, such as radars and special
vehicles the country can't afford because public funds are
used to address other priorities, such as the fight against
crime and health and education programs'."
Article in Tegucigalpa-based moderate daily "El Heraldo"
on 6/26 entitled "The U.S. should aid more". "President
Maduro stated the United States has helped, but not in the
degree this country needs for accomplishable results.
Ambassador Larry Palmer replied, `the Honduran public has
the right to know and if they determine these allegations to
be true, then we want the guilty to receive the maximum
penalty of the law. I won't be satisfied until all drug-
traffickers are in jail, but it's a pretty hard fight'."
"Maduro added, `Honduras needs more help because the public
funds go towards teenage delinquency and education systems.
Money and sophisticated equipment are needed for this
project, and the amount of money Honduras currently has is
not enough to cover certain needs'."
Additionally, according to a July 8, 2003 report called ANOTHER HONDURAN CONGRESSMAN BUSTED ON DRUG CHARGES, in part it says,
“SUMMARY: Yet another Honduran political figure was
implicated in drug trafficking when he was arrested on July 6
fleeing the scene of an airplane crash in the eastern
department of Olancho. National Party Deputy, Armando Avila
Panchame, was arrested by the police for drug trafficking and
attempted murder (for running his car through two police
roadblocks.) President Ricardo Maduro, President of the
National Congress Pepe Lobo, and Attorney General Roy Medina
-- all indicated congressional immunity would be lifted to
pursue the prosecution of this deputy. This arrest could
prove to be a key test of the political and judicial
systems, ability to attack the growing narcocorruption
problem in Honduras. END SUMMARY
On Saturday, July 5, Honduran police authorities,
responding to intelligence information, mounted an operation
against a suspected drug trafficking airplane that crashed in
the eastern Honduran department of Olancho. The operation
resulted in the arrest of nine individuals, including a
member of the Honduran National Congress, Armando Avila
Panchame, a Colombian, and a Venezuelan. Unfortunately,
there were no drugs seized or found; however police are still
conducting a series of searches of the surrounding areas.
Canine units, funded by a State International Narcotics and
Law Enforcement (INL) program, did alert to the rpesence of
drugs in the aircraft and vehicles. The bold narco aircraft
landing took place on a secondary paved roadway that was
blocked by drug traffickers, vehicles, which had been
modified to illuminate the makeshift runway with floodlights.
Trees along the roadway had also been removed with
chainsaws. Police recovered automatic AK-47 and M-16 rifles,
200 rounds of ammunition, satellite phones, radio equipment,
and night reflector vests at the location. It appears that
the aircraft successfully unloaded its cargo, but in its
haste to depart as police descended on the scene it struck
one of the vehicles that had secured one end of the
improvised runway.
(SBU) There is some media speculation, based on public
statements made by the son of the notorious (and currently
incarcerated in the U.S.) drug trafficker Ramon Matta, that
there was a confrontation between rival drug cartels. The
location of the drug delivery abutted a ranch owned by the
Matta family. Matta is claiming to have aided police by
informaing them of the landing of the suspect aircraft and
ythen shooting at it as it tried to depart. He also said he
permitted searches of his property for the missing drugs.
(Comment: Police report no such cooperation and have said
that the shots fired from the Matta group were a signal to
the aircraft,s pilot that police were approaching. There
were bullet holes observed in the aircraft. End Comment.)
While no drugs were seized, Honduran Deputy Avila
Panchame is charged with attempted murder for having run his
vehicle through two police roadblocks. The statements of two
police officers at those roadblocks accuse Avila Panchame of
refusing to stop and charging through the roadblocks. He is
also being charged with drug trafficking. The arrest of a
member of Congress is keeping the spotlight on the extent to
which narcocorruption is permeating Honduran institutions.
President Maduro, President of the National Congress Pepe
Lobo, and the Attorney General have all indicated
congressional immunity will be waived in this case to pursue
the prosecution of this deputy on the drug charges. Under
the Honduran Constitution, immunity for attempted murder or
murder are exempt from any congressional immunity claim
(Comment: This incident is not the first time that Avila
Panchame has come to the Embassy,s attention for possible
involvement in drug trafficking. Earlier in April of this
year, the same vehicle in which he was traveling during this
incident was observed by witnesses at the scene of an earlier
suspected crashed aircraft. In that incident police seized
397 kilos of cocaine, but no arrests were ever made. End
Comment.)
COMMENT: This arrest could prove to be a key test of
the political and judicial systems, ability to attack the
growing narco-corruption problem in Honduras. Avila Panchame
is now the third Honduran political figure to be arrested on
drug trafficking charges in the last year. Coming on the
heels of the June 20 arrest of Liberal Party Central American
Parliament member Cesar Diaz in Nicaragua (reftel) and last
summer,s arrest of a former deputy in Panama (both of whom
were arrested in possession of heroin) the media is
highlighting the mounting connections between international
drug traffickers and Honduran political elites. As reported
septel, the Ambassador recently placed the Attorney General
on notice that his office must produce some high-profile
drug-trafficking and corruption prosecutions immediately or
risk losing further U.S. support. We will be monitoring
developments in this case closely.”
Additionally, according to December 10, 2003 report called HONDURAN POLICE SEIZE 636 KILOS OF COCAINE AND ARREST PARLACEN STAFF MEMBER FOR DEALING COCAINE, in part it says, “Summary: On December 4, Honduran authorities seized
approximately 636 kilos of cocaine from a truck in San Pedro
Sula. The seizure of the drugs was the result of
well-executed police work, acting upon a tip that a large
amount of drugs would soon be moving through the country.
The drugs were discovered in a concealed compartment in the
back of a truck. This brings the total amount of cocaine
seized this year in Honduras to approximately 5,700 kilos.
Also, later that same day, Jorge Alberto Caceres, (a PARLACEN
staff member) was arrested for distributing and selling
cocaine in the parliament's offices. End Summary.
On December 4, Honduran authorities seized approximately
636 kilos of cocaine from a truck in San Pedro Sula. Police
initially stopped the vehicle because his windows were
completely tinted (Note: It is technically illegal in
Honduras to have one's windows 100 percent tinted. End
note). After approaching the vehicle, the police noticed
that the "very nervous" driver possessed two cellular phones,
a radio, and various sets of keys. The driver, who claimed
to be from Honduras, then presented "suspicious"
identification, and when police asked him some very basic
questions about Honduras, he was unable to answer. The
police then performed a complete search of the vehicle
leading to the discovery of the concealed compartment.
According to the Vice Minister of Security, Armando
Calidonio, the seizure was the product of an operation led by
the National Police, who acted upon general information they
had received that a rather large shipment of drugs would soon
transit the country. It appears that the 636 kilos were only
a part of the original shipment of approximately 1,200 kilos.
According to the driver, the remainder had been placed in
another identical vehicle. It is suspected that the other
half of the shipment has already left the country.
In an unrelated incident later that same day, police
arrested Jorge Alberto Caceres, a staff member of the Central
American Parliament (PARLACEN), for distributing and selling
cocaine in the parliament's offices in Tegucigalpa. Hours
before Caceres' arrest, four other men were arrested upon
leaving PARLACEN, all of whom were found to be in possession
of cocaine, presumably for the purpose of selling it.
The sting operation at PARLACEN was part of a month-long
investigation, in which government officials claim to have
videotaped Caceres selling cocaine on various occasions. A
search of Caceres' office came up empty, but authorities
presume that the drugs are hidden somewhere else in the
PARLACEN complex. (Note: According to press reports, the
director of PARLACEN only gave authorities permission to
search Caceres' office. End Note). Caceres is the second
Honduran at PARLACEN this year to be arrested on drug-related
charges. Earlier this year, Cesar Diaz was arrested in
Nicaragua when police found seven kilos of heroin in his
vehicle (reftel). He was later convicted of trafficking and
possession of heroin.
These latest seizures bring the total amount of cocaine
seized this year in Honduras to approximately 5,700 kilos.
This is significantly more than has been seized in the last
seven years combined.”
In a December 17, 2009 report called MEXICAN NAVY OPERATION NETS DRUG KINGPIN ARTURO BELTRAN LEYVA.
In part it says, “Summary. Mexican Navy forces acting on U.S.
information killed Arturo Beltran Leyva in an operation on
December 16, the highest-level takedown of a cartel figure
under the Calderon administration. The operation is a clear
victory for the Mexican Government and an example of
excellent USG-GOM cooperation. The unit that conducted the
operation had recieved extensive U.S. training. Arturo
Beltran Leyva's death will not solve Mexico's drug problem,
but it will hopefully generate the momentum necessary to make
sustained progress against other drug trafficking
organizations. End Summary.
The Operation
-------------
Mexican Navy (SEMAR) sources revealed on the night of
December 17 that SEMAR forces killed Arturo Beltran Leyva
(ABL), head of the Beltran Leyva Organization, during a
shoot-out in Cuernavaca (approximately 50 miles south of
Mexico City) that afternoon. At least three other cartel
operatives were killed during the raid, with a fourth
committing suicide. While it still has not been confirmed,
Embassy officials believe the latter to be ABL's brother,
Hector, which would mean that all Beltran Leyva brothers are
either dead or in prison. Arturo Beltran Leyva has a long
history of involvement in the Mexican drug trade, and worked
with Joaquin "El Chapo" Guzman and his Sinaloa Cartel before
splitting in 2008. The rivalry between the Sinaloa and
Beltran Leyva organizations has been a key factor driving the
escalating levels of narcotics-related violence in recent
years. Born in Sinaloa, ABL has been key to the importation
and distribution of cocaine and heroin in the United States,
and also has extensive money laundering capabilities,
corruption networks, and international contacts in Colombia
and the U.S.
Embassy law enforcement officials say that the arrest
operation targeting ABL began about a week prior to his death
when the Embassy relayed detailed information on his location
to SEMAR. The SEMAR unit has been trained extensively by
NORTHCOM over the past several years. SEMAR raided an
identified location, where they killed several ABL bodyguards
and arrested over 23 associates, while ABL and Hector
escaped. On Monday, the Embassy interagency linked ABL to an
apartment building located in Cuernavaca (about an hour south
of Mexico City), where ABL was in hiding. SEMAR initiated an
arrest operation on Wednesday afternoon, surrounding the
identified apartment complex, and establishing a security
perimeter. ABL's forces fired on the SEMAR operatives and
engaged in a sustained firefight that wounded three SEMAR
marines and possibly killed one. SEMAR forces evacuated
residents of the apartment complex to the gym, according to
press accounts, and no civilian casualties have so far been
reported.
The Mexican Interagency
-----------------------
The successful operation against ABL comes on the
heels of an aggressive SEMAR effort in Monterrey against Zeta
forces (ref a) and highlights its emerging role as a key
player in the counternarcotics fight. SEMAR is well-trained,
well-equipped, and has shown itself capable of responding
quickly to actionable intelligence. Its success puts the
Army (SEDENA) in the difficult position of explaining why it
has been reluctant to act on good intelligence and conduct
operations against high-level targets. The U.S. interagency
originally provided the information to SEDENA, whose refusal
to move quickly reflected a risk aversion that cost the
institution a major counternarcotics victory. SEDENA did
provide backup to SEMAR during the firefight with ABL forces,
but can take little credit for the operation. Public
Security Secretary (SSP) Genaro Garcia Luna can also be
counted as a net loser in the Mexican interagency following
the ABL operation. SSP considers high-level Beltran Leyva
targets to be its responsibility, and Garcia Luna has already
said privately that the operation should have been his.
The Impact on Violence
----------------------
It is early to say with a great degree of confidence
what kind of effect ABL's death will have on levels of
narco-related violence in Mexico. A spike is probably likely
in the short term as inter- and intra-cartel battles are
intensified by the sudden leadership gap in one of the
country's most important cartels. With all the Beltran Leyva
brothers likely dead or in prison, there are a number of
other cartel functionaries likely to vie for the leadership
slot. Moreover, rival organizations may intensify efforts to
expand their influence in the disarray likely to follow ABL's
death. At the very least, efforts to clean the Beltran Leyva
house and rout out suspected informers will be bloody, and
retaliation by the organization against Mexican law
enforcement or military officials is not out of the cards.
In the medium to longer term, ABL's death could have
the potential to lower the level of narco-violence rates.
ABL himself was a particularly violent leader with numerous
effective assassin teams. Moreover, the Sinaloa-Beltran
Leyva rivalry has been responsible for a large number of
narcotics-related homicides in Mexico, and also largely
personally driven by the Beltran Leyva brothers themselves.
Emboffs speculate that Beltran Leyva associates, under
pressure and perhaps more vulnerable due to leadership
deficiencies, could move to align more closely again with
Sinaloa, which they might think offers a more natural
protection than the Zetas.
The Boost for Calderon
----------------------
SEMAR's successful operation against ABL is a major
victory for President Calderon and his war against organized
crime. ABL is the highest ranking target taken down by the
Calderon government, and his status as one of the most
important and long-standing of Mexican drug traffickers makes
his takedown even more symbolically important. President
Calderon has openly admitted to having a tough year -- his
party lost big in the midterm elections, he is confronting an
economic crisis, and nationwide homicide rates continue to
climb -- and contacts have told Poloff that he has seemed
"down" in meetings. The SEMAR operation is undoubtedly a
huge boost for him, both in terms of bolstering public
support for his security efforts and in reassuring himself
that important security accomplishments in this area are
possible. Calderon's political opponents will also find it
far less useful to accuse the President of hanging on to an
ineffective anti-crime strategy that nets numerous mid- to
low-level cartel figures but fails to rein in the major
kingpins. The major Mexico City dailies have run front page
Beltran Leyva stories, and President Calderon's remarks in a
press conference from Copenhagen highlighting that the
operation represents an "important achievement for the
Mexican people and government" were widely covered.
Comment
-------
The operation against Arturo Beltran Leyva is a clear
victory for the Mexican Government and an example of
excellent USG-GOM cooperation. Seamless Embassy interagency
collaboration combined with a willing, capable, and ready
SEMAR produced one of the greatest successes to date in the
counternarcotics fight. ABL's death will provide an
important boost to Calderon and hopefully will cultivate a
greater sense of confidence within Mexican security agencies
that will encourage them to take greater advantage of similar
opportunities. SEMAR's win in particular may encourage
SEDENA to be more proactive and less risk averse in future
operations. ABL's death will certainly not resolve Mexico's
drug problem, but it will likely generate the momentum
necessary within the GOM security apparatus to make sustained
and real progress against the country's drug trafficking
organizations.
Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity and the North American
Partnership Blog at http://www.intelink.gov/communities/state/nap /
PASCUAL
Drug Kingpins and TMM shipping line.
By Port Watch.
https://www.indybay.org/newsitems/2003/01/23/15647041.php
TMM – Transportacion Maritima Mexicana - . Ports, see link below…
Ports: https://sanpedro.com/commercial-shipping/#google_vignette
https://transportacionmaritima.com/en/port-agency/
Reportedly, Some Narco Trafficking Dealings of "TMM/Transportacion Maritima Mexicana.
Click below…
http://www.customscorruption.com/white_tiger/WhiteTigerAttachmentInsight7.gif
Operation White Tiger
https://www.customscorruption.com/white_tiger/operation.htm
https://www.customscorruption.com/white_tiger/WhiteTigerDoc1.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc2.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc3.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc4.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc5.gif
TMM, owned by drug kingpins used to, or still may operate out of the Port of Oakland.
TMM - Carlos Hank Rohn
https://www.customscorruption.com/white_tiger/WhiteTigerAttachmentInsight7.gif
The Politics of Heroin in Southeast Asia, by Alfred W. McCoy
https://renincorp.org/bookshelf/politics-of-heroin-in-south.pdf
The Politics of Heroin: CIA Complicity in the Global Drug Trade (ISBN 1-55652-483-8).
Click below…
https://ia904503.us.archive.org/24/items/alfred-w.-mc-coy-the-politics-of-heroin-2003/Alfred%20W.%20McCoy%20-%20The%20politics%20of%20heroin%20-%202003.pdf
Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion
by Gary Webb
Click below…
https://archive.org/stream/dark-alliance-the-cia-the-con-gary-webb/Dark%20Alliance_%20The%20CIA%2C%20the%20Con%20-%20Gary%20Webb_djvu.txt
Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion
by Gary Webb
https://archive.org/details/dark-alliance-the-cia-the-con-gary-webb/mode/1up
The Storm Over Dark Alliance
https://nsarchive2.gwu.edu/NSAEBB/NSAEBB113/storm.htm
Lynda Carson may be reached at newzland2 [at] gmail.com
>>>>>>>>
>>>>>>>>
Former president of Honduras, Juan Orlando Hernandez to receive corrupt Trump pardon from Hazelton Federal Correctional Complex
By Lynda Carson - November 30, 2025
According to a news report from the BBC, in part it says, “Juan Orlando Hernández was sentenced to 45 years in prison for drug trafficking and firearms offenses. Donald Trump has said that he will pardon the former president of Honduras, Juan Orlando Hernández, who was convicted of drug trafficking charges in a US court last year. The US president said Hernández had been "treated very harshly and unfairly" in a social media post announcing the move on Friday. Hernández was found guilty in March 2024 of conspiring to import cocaine into the US, and of possessing machine guns. He was sentenced to 45 years in prison.”
The convicted felon President Trump has made the news repeatedly for illegally blowing up boats in the water that he claims are drug dealers, without offering any proof. Us military personnel have been reminded that they do not have to follow any unlawful or illegal orders, and that has upset the convicted felon in the White House to extremes.
Note: US troops https://www.indybay.org/newsitems/2016/09/07/18790947.php were deeply involved in trafficking of heroin and opium in Afghanistan. Report, from KABUL - Opium addiction - 2007.
“Barbosa said the next challenge will be high
addiction levels, especially among returnees from Iran and
the ethnic Turkmen community in Jowzan and Faryab provinces.
Children as young as five are addicted, as a result of their
mothers blowing opium smoke into their faces to calm them
down or licking their hands while they harvest resin from the
poppy flowers. Doctors report they must travel to homes to
provide care, as addicts are too embarrassed to come to the
medical clinic to seek help.”
News Headlines for Drug Trafficking Kingpins:
Click below…
https://news.google.com/search?q=drug%20trafficking%20kingpins&hl=en-US&gl=US&ceid=US%3Aen
Drug Kingpin Juan Orlando Hernandez.
According to public records, Juan Orlando Hernandez, age 57, white male, register number: 91441-054, is a federal inmate located at Hazelton United States Prison, in West, Virginia, with a release date of 6/19/2060. Hazelton Federal Correctional Complex, where Whitey Bulger was killed, reportedly is known as the second deadliest prison in the country.
Reportedly, “Hernández hired lobby firm BGR group for $660,000. - Secretary Rubio has been one of the top recipients in campaign contributions from BGR, and may have helped to get a pardon for Hernandez.”
According to the website for the Department of Justice, in a big headline, in part it says, “Juan Orlando Hernández, Former President of Honduras, Sentenced to 45 Years in Prison for Conspiring to Distribute More Than 400 Tons of Cocaine and Related Firearms Offenses.”
That’s right. This is a bad hombre https://en.wikipedia.org/wiki/Juan_Orlando_Hern%C3%A1ndez , convicted of trafficking tons of cocaine and firearms. Just the sort of guy you would expect the convicted felon President Trump to pardon, when considering the 1,500 or so January 6 federal criminals he pardoned, that attacked the Capitol building in an effort to overturn the election on behalf of Trump.
Convicted felon President Trump makes the DOJ look stupid for going after drug kingpin Juan Orlando Hernandez, meanwhile notorious drug kingpin Joaquin "El Chapo" Guzman has sued the federal Supermax prison in Colorado where he resides over “torture” conditions.
Juan Orlando Hernández To Be Pardoned By Convicted Felon President Trump.
The June 26, 2024, DOJ release in part also says, “Hernández Conspired with Some of the Largest Drug Traffickers in the World to Transport Tons of Cocaine through Honduras to the United States.
The former president of Honduras, Juan Orlando Hernández, 55, also known as JOH, was sentenced today to 540 months in prison and 60 months of supervised release for cocaine importation and related weapons offenses. The former two-term president was in office until weeks before his extradition to the United States in April 2022. Hernández was convicted on March 8 following a three-week jury trial.
“As President of Honduras, Juan Orlando Hernández abused his power to support one of the largest and most violent drug trafficking conspiracies in the world, and the people of Honduras and the United States bore the consequences,” said Attorney General Merrick B. Garland. “Thanks to the diligent work of the Justice Department’s agents and prosecutors, Hernández will now spend more than four decades in prison. The Justice Department will hold accountable all those who engage in violent drug trafficking, regardless of how powerful they are or what position they hold.”
“The Drug Enforcement Administration (DEA) is relentlessly focused on dismantling drug trafficking organizations that threaten the safety and health of the American people,” said DEA Administrator Anne Milgram. “Former Honduran President Juan Orlando Hernández financed his political career with drug trafficking profits and abused his authority as President of Honduras to traffic hundreds of tons of cocaine to the United States. Let me be clear, political actors who use their power to traffic in drugs and corruption will be brought to justice in the United States.”
“As the former two-term president of Honduras, Juan Orlando Hernández had every opportunity to affect positive change for his country," said U.S. Attorney Damian Williams for the Southern District of New York. "Instead, Hernández helped to facilitate the importation of an almost unfathomable 400 tons of cocaine to this country: billions of individual doses sent to the United States with the protection and support of the former president of Honduras. Now, after years of destructive narco-trafficking of the highest imaginable magnitude, Hernández will spend 45 years where he belongs: in federal prison.”
According to court documents, from at least in or about 2004, up to and including in or about 2022, Hernández, the former two-term president of Honduras and former president of the Honduran National Congress, was at the center of one of the largest and most violent drug-trafficking conspiracies in the world. During his political career, Hernández abused his powerful positions and authority in Honduras to facilitate the importation of over 400 tons of cocaine into the U.S. Hernández’s co-conspirators were armed with machine guns and destructive devices, including AK-47s, AR-15s, and grenade launchers, which they used to protect their massive cocaine loads as they transited across Honduras on their way to the United States, protect the money they made from the eventual sale of this cocaine, and guard their drug-trafficking territory from rivals. Hernández received millions of dollars of drug money from some of the largest and most violent drug-trafficking organizations in Honduras, Mexico, and elsewhere, and used those bribes to fuel his rise in Honduran politics. In turn, as Hernández rose to power in Honduras, he provided increased support and protection for his co-conspirators, allowing them to move mountains of cocaine, commit acts of violence and murder, and help turn Honduras into one of the most dangerous countries in the world.
During his time in office, Hernández publicly promoted legislation and the efforts he purported to undertake in support of anti-narcotics measures in Honduras. At the same time, he protected and enriched the drug traffickers in his inner circle and those who provided him with cocaine-fueled bribes that allowed him to obtain and stay in power in Honduras. For example, Hernández selectively upheld extraditions by supporting and taking credit for extraditions to the United States of certain drug traffickers who threatened his grip on power, while at the same time promising drug traffickers who bribed him and followed his instructions that they would remain safe in Honduras. In addition, Hernández and his co-conspirators abused Honduran institutions, including the Honduran National Police and Honduran military, to protect and grow their conspiracy. Among other things, members of the conspiracy used heavily armed Honduran National Police officers to protect their cocaine loads as they transited through Honduras towards the United States for eventual distribution. Members of the conspiracy also turned to violence and murder to protect and grow their drug trafficking enterprise, attacking and murdering rival traffickers and those who threatened their grip on the Honduran cocaine trade.
Several of Hernández’s co-conspirators have already been convicted and sentenced in connection with this investigation. Among others, Hernández’s brother, Juan Antonio Hernández Alvarado, also known as Tony Hernández, was convicted after trial in October 2019 and sentenced to life in prison, and Geovanny Fuentes Ramirez, a violent cocaine trafficker who met with Hernández on multiple occasions to discuss their drug trafficking partnership, was convicted after trial in March 2021 and sentenced to life in prison. Juan Carlos Bonilla Valladares, also known as El Tigre, the former chief of the Honduran National Police, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on Aug. 1, and Mauricio Hernández Pineda, a former member of the Honduran National Police and Hernández’s cousin, pleaded guilty to his participation in the cocaine importation conspiracy and is scheduled to be sentenced on July 2.
In total, Hernández and his co-conspirators trafficked more than 400 tons of U.S.-bound cocaine through Honduras during Hernández’s tenure in the Honduran government. This amounts to well over approximately 4.5 billion individual doses of cocaine.
The DEA investigated the case.
The Justice Department’s Office of International Affairs provided valuable assistance in securing Hernández’s arrest and extradition.
Trial Attorneys Andrea Broach and Jessica Fender of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Jacob H. Gutwillig, David J. Robles, Elinor L. Tarlow, and Kyle A. Wirshba for the Southern District of New York prosecuted the case.”
As far back as 2003, Juan Orlando Hernandez was known for his involvement in drug trafficking in Honduras. Reportedly, “Josías Aguilar, an attorney who had previously worked as a detective in two operations against the Valle Valle Cartel at the age of 21, exposed the connections between the drug trade and siblings Tony and Juan Orlando Hernandez. While working for the Attorney General’s Office, Aguilar brought to light the former president’s connections to drug trafficking and reported it to his supervisor, Soraya Cálix, as well as the outgoing Attorney General, Óscar Fernando Chinchilla. This story narrates everything that the Public Ministry failed to do over a decade against the Honduran narco-state.”
More about drug trafficking in Honduras.
According to a December 31, 1975 report called,
NARCOTICS ACTIVITIES IN HONDURAS.
In part it says, “BEGIN SUMMARY: CHIEF OF HONDURAN INVESTIGATIVE POLICE
SERIOUSLY CONCERNED AT INCREASE IN NARCOTICS TRAFFIC TO
AND THROUGH HONDURAS. HE DESIRES INCREASE COORDINATION
WITH DEA AND CENTRAL AMERICAN COUNTERPARTS AND REQUESTS
U.S. ASSISTANCE FOR TRAINING. END SUMMARY.
EMBASSY NARCOTICS COORDINATOR DISCUSSED LOCAL
NARCOTICS SITUATION WITH MAJOR ENRIQUE TAYLOR CALDERINI,
CHIEF OF DIRECTION DE INVESTIGACION NACIONAL (DIN) THE
HONDURAN CRIMINAL INVESTIGATION AGENCY OF THE NATIONAL
POLICE (FUSEP). TAYLOR FORCEFULLY EXPRESSED CONCERN
THAT ILLICIT DRUG TRAFFICKING WAS INCREASING IN HONDURAS.
HE BELIEVES THAT SIGNIFICANT AMOUNTS OF COCAINE AND MARI-
JUANA ARE PASSING THROUGH HONDURAS FROM SOUTH AMERICA TO
THE UNITED STATES RESULTING ALSO IN GREATER USE OF THESE
DRUGS LOCALLY. HE SAID LOCAL MARIJUANA USERS ARE TURNING
TO OUTSIDE SOURCES COMPLAINING HOME-GROWN GRASS NOT SUF-
FICIENTLY STRONG. POLICE HAVE ALSO RECENTLY UNCOVERED
FIRST KNOWN LOCAL USE OF HASHISH.
TAYLOR BLAMES COLUMBIANS AND CHILEANS LINKED WITH "MAFIA"
FOR INCREASED TRAFFICKING, BUT ALSO BELIEVES SOME U.S. CITI-
ZENS MAY BE INVOLVED, PARTICULARLY IN BAY ISLANDS AREA.
TAYLOR INDICATED STRONG DESIRE TO INCREASE COORDINATION
WITH DEA POINTING OUT THAT HIS AGENCY'S RESOURCES IN BOTH
MANPOWER AND MONEY ARE VERY LIMITED. HE PARTICULARLY WOULD
LIKE DEA ASSISTANCE IN TRAINING HIS PERSONNEL. HE WAS RE-
SPONSIVE TO EMBOFF'S COMMENTS ON POSSIBILITY OF FUTURE
CENTRAL AMERICAN REGIONAL TRAINING COURSE AND RECOGNIZED
DESIRABILITY OF CLOSER COORDINATION WITH OTHER CENTRAL AMERICAN
POLICE AGENCIES, HOWEVER, HE OBVIOUSLY WOULD PREFER AN IN-
COUNTRY TRAINING PROGRAM FOR A LARGER NUMBER OF AGENTS.
HE EMPHASIZED THE NEED FOR LEARNING "EMPIRICAL" SKILLS
SUCH AS STREET LEVEL IDENTIFICATION OF ILLICIT SUBSTANCES
RATHER THAN MORE SOPHISTICATED TRAINING. HE EXPRESSED DIS-
APPOINTMENT THAT PREVIOUS HONDURAN PARTICIPANTS IN U.S.
TRAINING PROGRAMS HAVE NOT BEEN SUCCESSFUL IN CONSTRUCTING
LOCAL TRAINING PROGRAMS TO PASS ON WHAT THEY LEARNED.
TAYLOR ALSO EXPRESSED NEED FOR ASSISTANCE IN ESTABLISH-
ING A CRIMINAL LABORATORY CAPABLE OF ANALYSING AND
IDENTIFYING ILLICIT DRUGS.
COMMENT: TAYLOR'S CONCERN QUITE GENUINE ALTHOUGH
WHETHER IT REFLECTS INCREASE IN TRAFFICKING OR INCREASED
POLICE AWARENESS OF TRAFFICKING DEBATABLE. EMBASSY CON-
CURS IN NEED FOR U.S. ASSISTANCE IN TRAINING LOCAL NAR-
COTICS AGENTS AND STRONLY SUPPORTS IDEA OF REGIONAL
COURSE AS SUGGESTED IN REFTEL. LABORATORY EQUIPMENT IS
PERENNIAL REQUEST WHICH EMBASSY DOES NOT SUPPORT IN
VIEW ACCESSIBILITY TO ADEQUATE LABORATORY FACILITIES
THROUGH OTHER GOH AGENCIES. EMBASSY HOPES DEA CAN IN-
CREASE THEIR COOPERATION WITH DIN, PLACING GREATER
EMPHASIS AT PRESENT ON TRAINING AND INSTITUTION BUILDING
THAN ON OPERATIONS.”
In a June 26, 2003 report called, MEDIA REACTION ON DRUG TRAFFICKING, JUNE 26, 2003.
In part it says, “Article in Tegucigalpa-based liberal daily "La Tribuna"
on 6/26 entitled "U.S. Ambassador doesn't see results
against narcos." "U.S. Ambassador Larry Palmer affirmed that
his government, just like the rest of Hondurans, expects to
see positive results in the fight against narco-
trafficking."
"The Ambassador stated, `We want results: drug seizures,
arrests of narco traffickers and convictions for those
responsible of such acts. we are deeply concerned with the
recent rise of organized crime and narco trafficking'."
"He added, `More than a year ago, the Embassy received an
anonymous report that gives names of many people linked to
narco-trafficking and organized crime. We'd like to see a
thorough investigation by the Honduran authorities to find
out whether those allegations are true or not; the Honduran
people are entitled to know'."
"Concerning the arrest of Cesar Diaz, the Honduran member of
the Central American Parliament who was arrested in
Nicaragua with 7 kilos of heroin, he declared `it is more
important what comes after his apprehension. I hope the
Honduran authorities do their best to penalize rigorously
those responsible for narco-trafficking'."
Article in San Pedro Sula-based liberal daily "La Prensa"
on 6/26 entitled "The U.S. demands the maximum penalty for
narcos". "U.S. Ambassador Larry Palmer sent a clear
challenge to the Judicial branch, the police and the General
Attorney's Office: seize more drugs and penalize drug
traffickers with the maximum penalty."
"In a press conference, Palmer affirmed, `The police and the
General Attorney Office's are responsible for finding out
the whereabouts of narco-traffickers. We expect positive
results from their task'."
"About the arrest of Congressman Cesar Diaz, the Ambassador
stated that the behavior of one person can't affect the
image of the whole country. He declared that the important
thing is that those guilty of these crimes must be severely
punished by law."
Article in "La Tribuna" on 6/26 entitled "U.S. aid is
only enough for their advisors". "The coordinator of
prosecutors of the Attorney General Office, Humberto
Palacios Moya, said that they will only keep arresting minor
users of marijuana and cocaine if the U.S. doesn't help to
improve their logistical structures."
"Palacios affirmed, `The anti-narcotics police has only 29
agents for the whole country, we have said this to the
National Congress and the U.S. Embassy but their answer is
that they have given enough money for the fight against
drugs. what the Americans do not say is that their money
mainly goes to the DEA advisors and other international
organizations'."
Article in "La Tribuna" on 6/26 entitled "The Attorney
General's Office is also infiltrated". "Alfredo Landaverde,
former Executive Director of the National Council against
Narco Trafficking, challenged governmental authorities to
categorically face narco-trafficking, one of the most
dangerous branches of organized crime."
"Concerning the infiltration of organized crime in the
country's security forces, he emphatically affirmed, `many
policemen have personally told me they are afraid of some of
their colleagues because they know they work for criminal
organizations. Honduras has a few good prosecutors, judges
and policemen determined to fight against organized crime
but beside them, we can also find infiltrated officials'."
"He added, `I know they will call me once again to confirm
those accusations. Then, I guess they will also call the
U.S. embassy's DCM Roger Pierce for saying that as well'."
Article in "La Tribuna" on 6/26 entitled "Four Colombians
are arrested in narco plane case". "Four Colombians and two
Hondurans were arrested and accused for being tied with the
narco organizations operating in the region of Colon, which
recently burned and destroyed a plane that was used to
transport 500 kilos of cocaine, apparently from Colombia".
Article in "La Prensa" on 6/26 entitled "Maduro asks the
U.S. for help". "President Maduro stated that the fight
against drug trafficking is much more difficult for a poor
country like Honduras, and `that is why I'm asking the U.S.
which has always been an extraordinary ally, to increase its
support on this issue. this campaign requires a lot of money
and we need the help of a big country like the U.S.'."
"Maduro declared, the fight against drug trafficking
demands sophisticated equipment, such as radars and special
vehicles the country can't afford because public funds are
used to address other priorities, such as the fight against
crime and health and education programs'."
Article in Tegucigalpa-based moderate daily "El Heraldo"
on 6/26 entitled "The U.S. should aid more". "President
Maduro stated the United States has helped, but not in the
degree this country needs for accomplishable results.
Ambassador Larry Palmer replied, `the Honduran public has
the right to know and if they determine these allegations to
be true, then we want the guilty to receive the maximum
penalty of the law. I won't be satisfied until all drug-
traffickers are in jail, but it's a pretty hard fight'."
"Maduro added, `Honduras needs more help because the public
funds go towards teenage delinquency and education systems.
Money and sophisticated equipment are needed for this
project, and the amount of money Honduras currently has is
not enough to cover certain needs'."
Additionally, according to a July 8, 2003 report called ANOTHER HONDURAN CONGRESSMAN BUSTED ON DRUG CHARGES, in part it says,
“SUMMARY: Yet another Honduran political figure was
implicated in drug trafficking when he was arrested on July 6
fleeing the scene of an airplane crash in the eastern
department of Olancho. National Party Deputy, Armando Avila
Panchame, was arrested by the police for drug trafficking and
attempted murder (for running his car through two police
roadblocks.) President Ricardo Maduro, President of the
National Congress Pepe Lobo, and Attorney General Roy Medina
-- all indicated congressional immunity would be lifted to
pursue the prosecution of this deputy. This arrest could
prove to be a key test of the political and judicial
systems, ability to attack the growing narcocorruption
problem in Honduras. END SUMMARY
On Saturday, July 5, Honduran police authorities,
responding to intelligence information, mounted an operation
against a suspected drug trafficking airplane that crashed in
the eastern Honduran department of Olancho. The operation
resulted in the arrest of nine individuals, including a
member of the Honduran National Congress, Armando Avila
Panchame, a Colombian, and a Venezuelan. Unfortunately,
there were no drugs seized or found; however police are still
conducting a series of searches of the surrounding areas.
Canine units, funded by a State International Narcotics and
Law Enforcement (INL) program, did alert to the rpesence of
drugs in the aircraft and vehicles. The bold narco aircraft
landing took place on a secondary paved roadway that was
blocked by drug traffickers, vehicles, which had been
modified to illuminate the makeshift runway with floodlights.
Trees along the roadway had also been removed with
chainsaws. Police recovered automatic AK-47 and M-16 rifles,
200 rounds of ammunition, satellite phones, radio equipment,
and night reflector vests at the location. It appears that
the aircraft successfully unloaded its cargo, but in its
haste to depart as police descended on the scene it struck
one of the vehicles that had secured one end of the
improvised runway.
(SBU) There is some media speculation, based on public
statements made by the son of the notorious (and currently
incarcerated in the U.S.) drug trafficker Ramon Matta, that
there was a confrontation between rival drug cartels. The
location of the drug delivery abutted a ranch owned by the
Matta family. Matta is claiming to have aided police by
informaing them of the landing of the suspect aircraft and
ythen shooting at it as it tried to depart. He also said he
permitted searches of his property for the missing drugs.
(Comment: Police report no such cooperation and have said
that the shots fired from the Matta group were a signal to
the aircraft,s pilot that police were approaching. There
were bullet holes observed in the aircraft. End Comment.)
While no drugs were seized, Honduran Deputy Avila
Panchame is charged with attempted murder for having run his
vehicle through two police roadblocks. The statements of two
police officers at those roadblocks accuse Avila Panchame of
refusing to stop and charging through the roadblocks. He is
also being charged with drug trafficking. The arrest of a
member of Congress is keeping the spotlight on the extent to
which narcocorruption is permeating Honduran institutions.
President Maduro, President of the National Congress Pepe
Lobo, and the Attorney General have all indicated
congressional immunity will be waived in this case to pursue
the prosecution of this deputy on the drug charges. Under
the Honduran Constitution, immunity for attempted murder or
murder are exempt from any congressional immunity claim
(Comment: This incident is not the first time that Avila
Panchame has come to the Embassy,s attention for possible
involvement in drug trafficking. Earlier in April of this
year, the same vehicle in which he was traveling during this
incident was observed by witnesses at the scene of an earlier
suspected crashed aircraft. In that incident police seized
397 kilos of cocaine, but no arrests were ever made. End
Comment.)
COMMENT: This arrest could prove to be a key test of
the political and judicial systems, ability to attack the
growing narco-corruption problem in Honduras. Avila Panchame
is now the third Honduran political figure to be arrested on
drug trafficking charges in the last year. Coming on the
heels of the June 20 arrest of Liberal Party Central American
Parliament member Cesar Diaz in Nicaragua (reftel) and last
summer,s arrest of a former deputy in Panama (both of whom
were arrested in possession of heroin) the media is
highlighting the mounting connections between international
drug traffickers and Honduran political elites. As reported
septel, the Ambassador recently placed the Attorney General
on notice that his office must produce some high-profile
drug-trafficking and corruption prosecutions immediately or
risk losing further U.S. support. We will be monitoring
developments in this case closely.”
Additionally, according to December 10, 2003 report called HONDURAN POLICE SEIZE 636 KILOS OF COCAINE AND ARREST PARLACEN STAFF MEMBER FOR DEALING COCAINE, in part it says, “Summary: On December 4, Honduran authorities seized
approximately 636 kilos of cocaine from a truck in San Pedro
Sula. The seizure of the drugs was the result of
well-executed police work, acting upon a tip that a large
amount of drugs would soon be moving through the country.
The drugs were discovered in a concealed compartment in the
back of a truck. This brings the total amount of cocaine
seized this year in Honduras to approximately 5,700 kilos.
Also, later that same day, Jorge Alberto Caceres, (a PARLACEN
staff member) was arrested for distributing and selling
cocaine in the parliament's offices. End Summary.
On December 4, Honduran authorities seized approximately
636 kilos of cocaine from a truck in San Pedro Sula. Police
initially stopped the vehicle because his windows were
completely tinted (Note: It is technically illegal in
Honduras to have one's windows 100 percent tinted. End
note). After approaching the vehicle, the police noticed
that the "very nervous" driver possessed two cellular phones,
a radio, and various sets of keys. The driver, who claimed
to be from Honduras, then presented "suspicious"
identification, and when police asked him some very basic
questions about Honduras, he was unable to answer. The
police then performed a complete search of the vehicle
leading to the discovery of the concealed compartment.
According to the Vice Minister of Security, Armando
Calidonio, the seizure was the product of an operation led by
the National Police, who acted upon general information they
had received that a rather large shipment of drugs would soon
transit the country. It appears that the 636 kilos were only
a part of the original shipment of approximately 1,200 kilos.
According to the driver, the remainder had been placed in
another identical vehicle. It is suspected that the other
half of the shipment has already left the country.
In an unrelated incident later that same day, police
arrested Jorge Alberto Caceres, a staff member of the Central
American Parliament (PARLACEN), for distributing and selling
cocaine in the parliament's offices in Tegucigalpa. Hours
before Caceres' arrest, four other men were arrested upon
leaving PARLACEN, all of whom were found to be in possession
of cocaine, presumably for the purpose of selling it.
The sting operation at PARLACEN was part of a month-long
investigation, in which government officials claim to have
videotaped Caceres selling cocaine on various occasions. A
search of Caceres' office came up empty, but authorities
presume that the drugs are hidden somewhere else in the
PARLACEN complex. (Note: According to press reports, the
director of PARLACEN only gave authorities permission to
search Caceres' office. End Note). Caceres is the second
Honduran at PARLACEN this year to be arrested on drug-related
charges. Earlier this year, Cesar Diaz was arrested in
Nicaragua when police found seven kilos of heroin in his
vehicle (reftel). He was later convicted of trafficking and
possession of heroin.
These latest seizures bring the total amount of cocaine
seized this year in Honduras to approximately 5,700 kilos.
This is significantly more than has been seized in the last
seven years combined.”
In a December 17, 2009 report called MEXICAN NAVY OPERATION NETS DRUG KINGPIN ARTURO BELTRAN LEYVA.
In part it says, “Summary. Mexican Navy forces acting on U.S.
information killed Arturo Beltran Leyva in an operation on
December 16, the highest-level takedown of a cartel figure
under the Calderon administration. The operation is a clear
victory for the Mexican Government and an example of
excellent USG-GOM cooperation. The unit that conducted the
operation had recieved extensive U.S. training. Arturo
Beltran Leyva's death will not solve Mexico's drug problem,
but it will hopefully generate the momentum necessary to make
sustained progress against other drug trafficking
organizations. End Summary.
The Operation
-------------
Mexican Navy (SEMAR) sources revealed on the night of
December 17 that SEMAR forces killed Arturo Beltran Leyva
(ABL), head of the Beltran Leyva Organization, during a
shoot-out in Cuernavaca (approximately 50 miles south of
Mexico City) that afternoon. At least three other cartel
operatives were killed during the raid, with a fourth
committing suicide. While it still has not been confirmed,
Embassy officials believe the latter to be ABL's brother,
Hector, which would mean that all Beltran Leyva brothers are
either dead or in prison. Arturo Beltran Leyva has a long
history of involvement in the Mexican drug trade, and worked
with Joaquin "El Chapo" Guzman and his Sinaloa Cartel before
splitting in 2008. The rivalry between the Sinaloa and
Beltran Leyva organizations has been a key factor driving the
escalating levels of narcotics-related violence in recent
years. Born in Sinaloa, ABL has been key to the importation
and distribution of cocaine and heroin in the United States,
and also has extensive money laundering capabilities,
corruption networks, and international contacts in Colombia
and the U.S.
Embassy law enforcement officials say that the arrest
operation targeting ABL began about a week prior to his death
when the Embassy relayed detailed information on his location
to SEMAR. The SEMAR unit has been trained extensively by
NORTHCOM over the past several years. SEMAR raided an
identified location, where they killed several ABL bodyguards
and arrested over 23 associates, while ABL and Hector
escaped. On Monday, the Embassy interagency linked ABL to an
apartment building located in Cuernavaca (about an hour south
of Mexico City), where ABL was in hiding. SEMAR initiated an
arrest operation on Wednesday afternoon, surrounding the
identified apartment complex, and establishing a security
perimeter. ABL's forces fired on the SEMAR operatives and
engaged in a sustained firefight that wounded three SEMAR
marines and possibly killed one. SEMAR forces evacuated
residents of the apartment complex to the gym, according to
press accounts, and no civilian casualties have so far been
reported.
The Mexican Interagency
-----------------------
The successful operation against ABL comes on the
heels of an aggressive SEMAR effort in Monterrey against Zeta
forces (ref a) and highlights its emerging role as a key
player in the counternarcotics fight. SEMAR is well-trained,
well-equipped, and has shown itself capable of responding
quickly to actionable intelligence. Its success puts the
Army (SEDENA) in the difficult position of explaining why it
has been reluctant to act on good intelligence and conduct
operations against high-level targets. The U.S. interagency
originally provided the information to SEDENA, whose refusal
to move quickly reflected a risk aversion that cost the
institution a major counternarcotics victory. SEDENA did
provide backup to SEMAR during the firefight with ABL forces,
but can take little credit for the operation. Public
Security Secretary (SSP) Genaro Garcia Luna can also be
counted as a net loser in the Mexican interagency following
the ABL operation. SSP considers high-level Beltran Leyva
targets to be its responsibility, and Garcia Luna has already
said privately that the operation should have been his.
The Impact on Violence
----------------------
It is early to say with a great degree of confidence
what kind of effect ABL's death will have on levels of
narco-related violence in Mexico. A spike is probably likely
in the short term as inter- and intra-cartel battles are
intensified by the sudden leadership gap in one of the
country's most important cartels. With all the Beltran Leyva
brothers likely dead or in prison, there are a number of
other cartel functionaries likely to vie for the leadership
slot. Moreover, rival organizations may intensify efforts to
expand their influence in the disarray likely to follow ABL's
death. At the very least, efforts to clean the Beltran Leyva
house and rout out suspected informers will be bloody, and
retaliation by the organization against Mexican law
enforcement or military officials is not out of the cards.
In the medium to longer term, ABL's death could have
the potential to lower the level of narco-violence rates.
ABL himself was a particularly violent leader with numerous
effective assassin teams. Moreover, the Sinaloa-Beltran
Leyva rivalry has been responsible for a large number of
narcotics-related homicides in Mexico, and also largely
personally driven by the Beltran Leyva brothers themselves.
Emboffs speculate that Beltran Leyva associates, under
pressure and perhaps more vulnerable due to leadership
deficiencies, could move to align more closely again with
Sinaloa, which they might think offers a more natural
protection than the Zetas.
The Boost for Calderon
----------------------
SEMAR's successful operation against ABL is a major
victory for President Calderon and his war against organized
crime. ABL is the highest ranking target taken down by the
Calderon government, and his status as one of the most
important and long-standing of Mexican drug traffickers makes
his takedown even more symbolically important. President
Calderon has openly admitted to having a tough year -- his
party lost big in the midterm elections, he is confronting an
economic crisis, and nationwide homicide rates continue to
climb -- and contacts have told Poloff that he has seemed
"down" in meetings. The SEMAR operation is undoubtedly a
huge boost for him, both in terms of bolstering public
support for his security efforts and in reassuring himself
that important security accomplishments in this area are
possible. Calderon's political opponents will also find it
far less useful to accuse the President of hanging on to an
ineffective anti-crime strategy that nets numerous mid- to
low-level cartel figures but fails to rein in the major
kingpins. The major Mexico City dailies have run front page
Beltran Leyva stories, and President Calderon's remarks in a
press conference from Copenhagen highlighting that the
operation represents an "important achievement for the
Mexican people and government" were widely covered.
Comment
-------
The operation against Arturo Beltran Leyva is a clear
victory for the Mexican Government and an example of
excellent USG-GOM cooperation. Seamless Embassy interagency
collaboration combined with a willing, capable, and ready
SEMAR produced one of the greatest successes to date in the
counternarcotics fight. ABL's death will provide an
important boost to Calderon and hopefully will cultivate a
greater sense of confidence within Mexican security agencies
that will encourage them to take greater advantage of similar
opportunities. SEMAR's win in particular may encourage
SEDENA to be more proactive and less risk averse in future
operations. ABL's death will certainly not resolve Mexico's
drug problem, but it will likely generate the momentum
necessary within the GOM security apparatus to make sustained
and real progress against the country's drug trafficking
organizations.
Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity and the North American
Partnership Blog at http://www.intelink.gov/communities/state/nap /
PASCUAL
Drug Kingpins and TMM shipping line.
By Port Watch.
https://www.indybay.org/newsitems/2003/01/23/15647041.php
TMM – Transportacion Maritima Mexicana - . Ports, see link below…
Ports: https://sanpedro.com/commercial-shipping/#google_vignette
https://transportacionmaritima.com/en/port-agency/
Reportedly, Some Narco Trafficking Dealings of "TMM/Transportacion Maritima Mexicana.
Click below…
http://www.customscorruption.com/white_tiger/WhiteTigerAttachmentInsight7.gif
Operation White Tiger
https://www.customscorruption.com/white_tiger/operation.htm
https://www.customscorruption.com/white_tiger/WhiteTigerDoc1.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc2.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc3.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc4.gif
https://www.customscorruption.com/white_tiger/WhiteTigerDoc5.gif
TMM, owned by drug kingpins used to, or still may operate out of the Port of Oakland.
TMM - Carlos Hank Rohn
https://www.customscorruption.com/white_tiger/WhiteTigerAttachmentInsight7.gif
The Politics of Heroin in Southeast Asia, by Alfred W. McCoy
https://renincorp.org/bookshelf/politics-of-heroin-in-south.pdf
The Politics of Heroin: CIA Complicity in the Global Drug Trade (ISBN 1-55652-483-8).
Click below…
https://ia904503.us.archive.org/24/items/alfred-w.-mc-coy-the-politics-of-heroin-2003/Alfred%20W.%20McCoy%20-%20The%20politics%20of%20heroin%20-%202003.pdf
Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion
by Gary Webb
Click below…
https://archive.org/stream/dark-alliance-the-cia-the-con-gary-webb/Dark%20Alliance_%20The%20CIA%2C%20the%20Con%20-%20Gary%20Webb_djvu.txt
Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion
by Gary Webb
https://archive.org/details/dark-alliance-the-cia-the-con-gary-webb/mode/1up
The Storm Over Dark Alliance
https://nsarchive2.gwu.edu/NSAEBB/NSAEBB113/storm.htm
Lynda Carson may be reached at newzland2 [at] gmail.com
>>>>>>>>
>>>>>>>>
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CIA's Air America was trafficking in drugs in Thailand, Laos, Cambodia, and Vietnam...
By Lynda Carson
Air America, run by Paul C. Velte Jr., and owned by the CIA, was trafficking in drugs in Thailand, Laos, Cambodia, and Vietnam, during it's existence.
An interesting film called Air America with Robert Downey Jr, and Mel Gibson came out a number of years ago about Air America's notorious narcotic trafficking days.
See some information below...
-Lynda Carson
>>>>>>>
Air America was used by the US government and the military to transport illegal drugs, and other items.
Wikipedia - Air America
Air America was an American passenger and cargo airline established, under a different name, in 1946 and covertly owned and operated by the Central Intelligence Agency (CIA) from 1950 to 1976, adopting the Air America name in 1959. It supplied and supported covert operations in Southeast Asia during the Vietnam War, including allegedly providing support for drug smuggling in Laos. Its slogan was "Anything, Anywhere, Anytime, Professionally".
https://en.wikipedia.org/wiki/Air_America_(airline)
>>>>>>>
https://en.wikipedia.org/wiki/The_Politics_of_Heroin_in_Southeast_Asia
Air America, covertly owned and operated by the CIA, was allegedly used to transport the illicit drugs. The CIA reacted strongly to the book: "...high-ranking officials of the C.I.A have signed letters for publication to a newspaper and a magazine, granted a rare on-the-record interview at the agency's headquarters in McLean, Va." The C.I.A letters were to the Washington Star and were signed by William E. Colby and Paul C. Velte Jr. "a Washington-based official with Air America, a charter airline that flies missions for the CIA in Southeast Asia.
Sep 11, 2025 · Paul C. Velte Jr., was CEO of Air America, a large airline that was secretly owned by the Central Intelligence Agency and used for a variety of missions in Southeast Asia.
http://www.naturegeezer.com/2018/08/p.html
[WASHINGTON DATELINE APRIL 27 EVENING PRESS ACCOUNTS OF
RELEASE OF SENATE SPECIAL COMMITTEE REPORT ON INTELLIGENCE
ACTIVITIES TENDED TO FOCUS ON CIA BACKING OF AIR AMERICA,
CIVIL AIR TRANSPORT, SOUTHERN AIR TRANSPORT, ETC., AND USE
BY AIR AMERICA AND SAT OF TACHIKAWA AIR BASE IN THE 1960S.
AS A BASE FOR SPECIAL OPERATIONS. ACCOUNTS ALSO REFERRED TO
OPERATION "DERBY HAT" WHICH SENATE REPORT STATES WAS
CONDUCTED IN FAR EAST AND SPECULATES WHETHER IT MIGHT NOT
BE RALATED TO PREVIOUSLY ALLEGED CIA EXPERIMENTATION WITH
LSD ON HUMANS AT ATSUGI NAS (TOKYO 4979). (TOKYO TEXT OF
YOMIURI ACCOUNT IS CARRIED BY FBIS.)]
I was able to dig up a few reports about the notorious Air America and it's activities below, before it folded, and dissolved.
-Lynda Carson
February 1974 - AIR AMERICA
AIR AMERICA CONTINUES TO SURFACE AS SUBJECT OF CRITICISM
OF AMERICAN PRESENCE IN THAILAND. REPUTATION AS A "CIA TOOL"
HAS RESULTED IN PUBLIC LINKING OF AIR AMERICA TO RECENT CIA
LETTER INCIDENT. IN UDORN, JANUARY STRIKE OF AIR AMERICA
WORKERS, ALTHOUGH SETTLED SATISFACTORILY, ATTRACTED COMMUNITY
ATTENTION TO ALLEGATIONS OF IRREGULARITY IN AIR AMERICA
OPERATIONS.
STUDENT GROUPS HAVE BEEN PURSUING THEIR OWN INVESTIGATIONS
OF AIR AMERICA. ACCORDING TO RTG SUPREME COMMAND SOURCES,
STUDENTS HAVE EXPRESSED DOUBT THAT RTG EXERCISES EFFECTIVE
CONTROL OVER AIR AMERICA. THEY ALLEGE THAT CIA IS USING AIR
AMERICA TO SMUGGLE ARMS AND NARCOTICS INTO THAILAND, WITH IN-
TENTION OF SUBVERTING RTG. THEY ALSO CLAIM THAT AIR AMERICA
HAS RESISTED EFFORTS BY THAI CUSTOMS AND IMMIGRATION TO
EXERCISE NORMAL CONTROLS AT PORTS OF ENTRY. PRESS HAS ALSO
PUBLICIZED CLAIM FROM DEPARTMENT OF CIVIL AVIATION THAT
AIR AMERICA OPERATIONS WERE NEVER PROPERLY AUTHORIZED BY RTG.
GENERAL KRIANGSAK OF SUPREME COMMAND HAS STRESSED RTG
CONCERN THAT CRITICISM WILL GET OUT OF CONTROL UNLESS
SATISFACTORY REPLIES CAN BE GIVEN TO PRESS, PUBLIC AND STUDENT
CRITICS. WE HAVE PROVIDED UNCLASSIFIED BACKGROUND BRIEFING
PAPER AND OFFERED TO PROVIDE FURTHER INFORMATION AS REQUIRED;
TO DATE PRESSURE ON RTG BANGKOK AGENCIES HAS FORTUNATELY
NOT ESCALATED, AND ISSUE HAS NOT YET BEEN TAKEN UP IN
PARLIAMENT.
LAST MONTH, FORSEEING INCREASING INTEREST IN AIR AMERICA
AS PRESSURE POINT AGAINST UNITED STATES ACTIVITIES IN
SOUTHEAST ASIA, AMBASSADOR ESTABLISHED INTER-AGENCY TASK
FORCE, WHICH IS WORKING CLOSELY WITH VIENTIANE TO DEVELOP
RECOMMENDATIONS FOR CONTINUING ESSENTIAL CONTRACTOR SERVICES,
NOW PROVIDED BY AIR AMERICA FROM BASES IN THAILAND, BEYOND
FY 74. WE EXPECT TO FORWARD COORDINATED RECOMMENDATIONS FOR
WASHINGTON CONSIDERATION WHORTLY.
KINTNER
>>>>>>>
August 1973 - NARCOTICS: AIR AMERICA
AIR AMERICAN CONTRACT FOR VIETNAM CONTAINS NO REFERENCE TO
NARCOTICS INSPECTION OF AIR AMERICA PASSENGERS.
HOWEVER, A PROGRAM OF INSPECTION WAS INSTITUTED 21 FEB 73.
INSPECTION APPLIED ONLY TO AIR AMERICA AT SAIGON AND AT THE
FOUR REGIONAL CAPITALS. ALL OTHER INTERNAL AND INTERNATIONAL
TRANSPORT WAS NOT CONTROLLED. INSPECTION WAS CARRIED OUT BY
AIR AMERICA EMPLOYEES WITHOUT AUTHORITY TO CARRY OUT POLICE
FUNCTIONS UNDER GVN LAW, BUT VIETNAMESE POLICE WERE PRESENT TO MAKE ARRESTS
IF NECESSARY. NO NARCOTICS WERE FOUND. MEMBERS OF THE MISSION
WHO TRAVEL MOST DOUBTED THAT THE CONTROLS WERE EFFECTIVE. THEY
WERE A MINOR NUISANCE TO TRAVELERS AND TO AIR OPERATIONS, AND
IN SOME CASES AN EMBARRASSMENT, AS WHEN AN EFFORT WAS MADE TO
SEARCH A FOREIGN MILITARY ATTACHE ON AN INTERNAL FLIGHT, OR WHEN
VIETNAMESE OFFICIALS WERE SUBJECTED TO AMERICAN SEARCH.
AIR AMERICA SERVICE IS ESSENTIAL TO THE MISSION BUT THE
GVN IS SENSITIVE TO IT AS A RIVAL TO AIR VIETNAM AND OTHER
PUBLIC TRANSPORT. THERE WAS SOME CONCERN THAT THE POSSIBLE AFFRONT
TO GVN SOVEREIGNTY IN THE CONTROL SYSTEM WOULD FOCUS THIS
OPPOSITION. THE NATIONAL DIRECTOR OF THE VIETNAMESE POLICE HAS SAID
HE WOULD CONTINUE TO COOPERATE WITH THE PROGRAM. HOWEVER, IT IS
HIS EMPHATIC VIEW THAT WITH MANY FORMS OF INTERNAL TRANSPORTATION
AVAILABLE, UNLIKE THE SITUATION IN LAOS, THE CONTROLS ARE
USELESS HERE. IN THE CIRCUMSTANCES, THE CHARGE D'AFFAIRES SUSPENDED
THE CONTROLS JUNE 30, 73, AND THE MISSION DOES NOT AT THIS TIME
INTEND TO REINSTATE THEM, BUT WILL KEEP THE SITUATION UNDER
CLOSE REVIEW.
MARTIN
>>>>>>>
January 1974 - STRIKE AT AIR AMERICA AND OTHER DISTURBANCES
SUMMARY: THAI EMPLOYEES AT AIR AMERICA LAUNCHED STRIKE
JANUARY 14 TO SEEK HIGHER WAGES AND MORE FRINGE BENEFITS. AIR
AMERICA SCHOOL CLOSED UNTIL FURTHER NOTICE. ABOUT 250 WORKERS
DEMONSTRATED WITH SIGNS WHICH READ "AMERICANS AND CIA GO HOME."
AND STOPPED AA BUSSES TO FORCE WILLING AND UNWILLING AA EMPLOYEES
TO GET OFF. THOUGH WORKER PROTESTS CONTINUE, AA OPERATIONS HAVE
NOT BEEN INTERRUPTED. PLANEL DISCUSSIONS AT UDORN TEACHERS
COLLEGE JANUARY 12, WHICH INCLUDED THREE CONSTITUTION THIRTEEN
ARRESTEES ASSERTED THAT THAILAND AS WELL AS ALL OF SOUTHEAST ASIA
IS TARGET FOR CIA OPERATIONS. PANELISTS SUGGESTED AMERICAN GIS
SHOULD BE REMOVED FROM THAILAND BASES DESPITE ECONOMIC CONSEQUENCES
TO THAILAND.
STUDENTS BOYCOTTED CLASSES AT UTC JANUARY 14 AND STAGED
DEMONSTRATION IN FRONT OF THE CONSULATE (REPORTED SEPTEL). DISTRICT
POLICE CHIEF WARNED OF POSSIBLE VIOLENCE AGAINST AMERICANS IN TOWN
WHICH WE PASSED TO BASE AND AMASUN. USAF RESTRICTED PERSONNEL TO
BASE OAT 1300 AS DID RAMASUN COMMANDER DURING AFTERNOON.
END SUMMARY.
STRIKE BEGAN AT AIR AMERICA (AA) MORNING JANUARY 14 TO
DRAMATIZE NEED FOR HIGHER WAGES AND INCREASED PRINCE BENEFITS.
ABOUT 250 WORKERS ASSEMBLED ALONG HIGHWAY TO AIR AMERICA CARRYING
SIGNS WHICH READ "AMERICANS, CIA GO HOME." WORKERS STOPPED AIR
AMERICA BUSES AND PULLED OFF THAI AND NON-THAI EMPLOYEES IN
HOPES THEY WILL JOIN STRIKE AND CRIPPLE AA OPERATIONS.
WORKER-DEMONSTRATIORS FIRST LOCATED IN FRONT OF UDORN TEACHERS'
COLLEGE (UTC) AT 700 HOURS, BUT LATER MARCHED TO PROVINCIAL OFFICE
WITH PLANS TO DEMONSTRATE AT AIR AMERICA LATER TODAY AND PLACE
WREATH AT AA GATE.
MEANWHILE, ACCORDING TO MANAGEMENT, SINCE AMERICANS BEING
USED IN SOME MAINTENANCE SLOTS VACATED BY STRIKING THAI EMPLOYEES,
AIR AMERICA OPERATIONS NOT DISRUPTED.
STUDENTS JANUARY 14 BOYCOTTED CLASSES AT UTC. INSTEAD THEY
GATHERED AT UTC AUDITORIUM TO LISTEN TO ANTI-U.S. AND ANTI-CIA
SPEECHES. SEVERAL OF THE SPEAKERS ARE FORMER JLD (CIA OPERATIONS,
LAOS) EMPLOYEES WHO ARE THAI NATIONALS.
CITY POLICE CHIEF SOMKIAT PHUANGSAP DURING VISIT TO CONSULATE
JANUARY 14 ALERTED US THAT STUDENTS PLANNED TO DEMONSTRATE IN
FRONT OF THE CONSULATE. DEMONSTRATORS LAID WREATH ATTACKING CIA
AT CONSULATE GATE (REPORTED SEPTEL.
PEACE CORPS VOLUNTEER AT UTC JANUARY 13 TOLD CON OFF VOLUNTEERS
HAD HEARD AND COUNTERED STUDENT ACCUSATIONS THAT THEY ARE CIA
AGENTS. (SEE REFTEL). SO FAR NO UNPLEASANT OR IMPROPER CONDUCT
TOWARD THEM. PCVS, HOWEVER, SAID THEY WOULD BE COMPROMISED IF
SEEN BY ANY STUDENTS TALKING TO OR VISITING CON OFF.
UTC STUDENTS WHO ORIGINALLY PLANNED THIS AFTERNOON TO LAY
WREATH PROTESTING AGAINST CIA AT USAF TENANTED BASE REPORTEDLY
DISBERSED INSTEAD AFTER MEETING PROVINCIAL GOVEROR. GOVERNOR
SPOKE TO THEM AFTER THEY LEFT CONSULATE (UDORN 13). GOVERNOR
SAID HE WOULD PASS ON TO BANGKOK FIRST FIVE OF SIX DEMANDS THEY
PRESENTED HIM, AS WELL AS CONSULATE, AND WOULD DISCUSS SIXTH
DEMAND (ON RESTRICTING U.S. MILITARY ACCESS INTO TOWN) WITH U.S.
MILITARY COMMANDERS AND CONSULATE. BROH-KAHN. GDS.
>>>>>>>
January 1974 - AIR AMERICA STRIKE AT UDORN
STRIKERS AT UDORN ROYAL THAI AIR FORCE BASE BEAT UP A COUPLE
OF AMERICAN MECHANICS THE MORNING OF JANUARY 16. THE STRIKERS
HAVE INTIMIDATED AIR AMERICA GUARDS AND NO GUARDS WERE ON HAND
EARLY IN THE DAY. THE CONSUL IN UDORN HAS DISCUSSED THE SITUATION
WITH THE PROVINCE POLICE CHIEF WHO HAS AGREED TO PROVIDE POLICE
GUARDS AROUND THE AIR AMERICA INSTALLATION.
UDORN WILL BE REPORTING BY IMMEDIATE TELEGRAM TO THE DEPART-
MENT ABOUT THESE EVENTS AS THEY UNFOLD. WHILE THE STRIKE HAS SO
FAR GONE ALMOST UNNOTICED IN BANGKOK, WE WOULD HOPE, IN THE WAKE
OF THE SAKON NAKHON LETTER INCIDENT, TO AVOID ANY FURTHER CAUSE
CELEBRE THAT COULD EXACERBATE THAI-U.S. RELATIONS. WE THEREFORE
REQUEST THAT THE DEPARTMENT APPRISE AIR AMERICA OF OUR CONCERN.
IT WOULD ALSO HELP TO URGE FLEXIBILITY ON THE PART OF AIR AMERICA
NEGOTIATORS IN UDORN, AS WELL AS IN THE TERMS AIR AMERICA OFFERS
THE STRIKERS.
KINTNER
>>>>>>>
April 1974 - AIR AMERICA
SUMMARY: SINCE MEETING BETWEEN AMBASSADOR AND MINISTER OF
DEFENSE, AIR CHIEF MARSHAL DAWEE (REF A), AIR AMERICA
DIRECTOR VELTE AND COMPANY REPRESENTATIVES HAVE MET WITH
AIR MARSHAL SOONTORN, DIRECTOR OF THAI/AM, ON TWO SEPAR-
ATE OCCASIONS. AS A RESULT OF THESE MEETINGS, IT IS
APPARENT THAT THE THAIS ARE IN NO HURRY TO TAKE OVER THE AIR
AMERICA UDORN OPERATION BY 30 JUNE. WE ARE THEREFORE RAPIDLY
APPROACHING AN IMPASSE THAT IN ALL PROBABILITY WILL NOT ALLOW
SUFFICIENT TIME TO MEET AIR AMERICA'S DESIRE TO TERMINATE OP-
ERATIONS AT THE END OF THE CURRENT CONTRACT PERIOD. ONLY WAY
WE CAN SEE TO GET THAI MOVING IS TO OFFER TO TURN OVER ES-
SENTIAL GFE TO THEM. MR. VELTE, WHO IS NOW ENROUTE TO WASHING-
TON, SHARES THIS VIEW AND WILL BE AVAILABLE FOR STATE/DOD
CONSULTATIONS. WE URGE FULL DISCUSSIONS WITH HIM TO AMPLIFY
THE PROBLEM AREAS DISCUSSED IN THIS MESSAGE. END SUMMARY.
WE UNDERSTAND THAT IN EARLY 1972 WASHINGTON LEVEL PLANNING
COMMENCED TO DISPOSE OF CERTAIN UNIQUE AIR PROPERTIES INCLUDING
AIR AMERICA. APPROXIMATELY A YEAR LATER A FIRM DECISION WAS MADE
TO DISPOSE OF AIR AMERICA AND STATE/DOD/AID WERE SO NOTIFIED.
LATER IN 1973 AIR AMERICA WAS PUT UP FOR SALE BUT A DECI-
SION WAS MADE THAT THE BIDS RECEIVED WERE TOO LOW. MEANWHILE,
AFTER OCTOBER 1973, AIR AMERICA OPERATIONS IN THAILAND HAD
BECOME A SOURCE OF IRRITATION IN THAI-U.S. RELATIONS. IN EARLY
1974 IN PARTIAL RESPONSE TO A MISSION RECOMMENDATION, A DECIS-
ION WAS MADE TO CLOSE OUT AIR AMERICA OPERATIONS IN THAILAND,
ALTHOUGH CERTAIN OTHER AIR PROPERTIES ARE STILL UP FOR POSSIBLE
DISPOSITION BY SALE. SUBSEQUENTLY, WE DID NOT RECEIVE SUFFI-
CIENT GUIDANCE TO APPROACH THE RTG UNTIL THE MEETING ON 1 APRIL
(REF A), OR APPROXIMATELY TWO YEARS AFTER INITIAL PLANNING
WAS BEGUN TO DISPOSE OF AIR AMERICA. WE CAN THEREFORE SYMPATHIZE
WITH THE RTG VIEW THAT THEY ARE NOT GOING TO BE RUSHED
INTO ASSUMING A CONTRACT THAT, FIRST IS SMALL (REF B);
AND, SECOND, OF UNCERTAIN DURATION, IN PART DEPENDENT ON
THE POLITICAL SITUATION IN LAOS AND THE ABILITY OF THE
RLAF TO ATTAIN SELF-SUFFICIENCY.
WITH THE INTERNAL POLITICAL PROBLEMS CURRENTLY FACING
THE RTG, THEY HAVE MADE IT CRYSTAL CLEAR TO AIR AMERICA
NEGOTIATORS THAT THE ASSUMPTION OF THE UDORN CONTRACT
IS WAY DOWN ON THEIR LIST OF PRIORITIES. THEY HAVE
RECOGNIZED THE DISCREPANCY IN PAY RATES BETWEEN THAI/AM
SALARIES IN BANGKOK AND THE HIGHER RATES PAID BY AIR
AMERICA IN THAILAND AS A REAL PRACTICAL PROBLEM AND
VOICED CONCERN OVER WHAT THEY WILL ULTIMATELY DO WITH THE
THAI EMPLOYEES WHOM THEY WOULD INHERIT AS PART OF THE
POSSIBLE CONTRACT. FINALLY, IT IS CLEAR THEY CONSIDER IT
POLITICALLY UNACCEPTABLE TO CONTINUE TO EMPLOY THIRD-COUNTRY
NATIONALS AND THAT ONLY A FEW AMERICAN MANAGEMENT PERSONNEL
WOULD BE ALLOWED TO STAY, AND THOSE ONLY ON A YEARLY CONTRACT
BASIS. WITHOUT THIS BACKBONE OF ESSENTIAL PERSONNEL, WE
ARE DOUBTFUL THAT A THAI INSTRUMENTALITY COULD PRODUCE AD-
EQUTE MAINTENANCE. HOWEVER, THE TIME CONSUMING PROCESS OF
TURNING OVER NECESSARY GFE TO THE THAI MIGHT BE USED AS LEVERAGE
TO MAINTAIN THIS NECESSARY BACKBONE STRUCTURE FOR SOME
TIME TO COME.
IN REVIEWING THE GFE LIST PROVIDED MACTHAI, WE NOTE
THAT OF THE $7.2 MILLION INVOLVED, $5.9 MILLION WAS
PURCHASED WITH FUNDS EARMARKED FOR LAOTIAN SUPPORT. OF
THIS AMOUNT APPROXIMATELY $4.7 MILLION IS IN FIXED PROPERTY
AND UTILITY DISTRIBUTION SYSTEMS THAT WOULD, PER PRIOR
AGREEMENT, REVERT TO THE RTG ANYWAY AT SUCH TIME AS THE US
HAS NO FURTHER REQUIREMENT FOR THE FACILITIES. THE REMAINING
$1.2 MILLION OF LAOS FUNDED MATERIAL IS ASSUMED TO BE ON DEP-
CHIEF'S BOOKS AND DISPOSITION WOULD HAVE TO BE WORKED OUT BY
THEM. AIR FORCE-OWNED GFE EQUIPMENT RUNS TO ABOUT AN ADDI-
TIONAL $1.3 MILLION, MUCH OF WHICH WE ASSUME COULD NOT BE
ECONOMICALLY RETROGRADED FOR USE ELSEWHERE. FOR EXAMPLE,
SUCH ITEMS AS 4 BICYCLES PURCHASED IN 1961 AT A TOTAL
ACQUSITION COST OF $170 WOULD NOT APPEAR TO BE LIKELY
CANDIDATES FOR RETROGRADE. IN SUM, IT WILL TAKE SOME TIME TO
EVALUATE WHAT IS ON HAND, TO EVALUATE LAOS REQUIREMENTS, AND
FINALLY TO NEGOTIATE THE TURN OVER OF REMAINING NECESSARY GFE
TO THE THAI. WE SHOULD BE FORTHCOMING I
E E E E E E E E
>>>>>>>
July 1974 - CLOSE OUT OF AIR AMERICA OPERATIONS IN THAILAND
AIR AMERICA SPOKESMAN IN BANGKOK TOLD THE PRESS JULY 1
THAT AIR AMERICA IN THAILAND HAD "CLOSED UP SHOP," WITH THE
EXCEPTION OF A SMALL ADMINISTRATIVE OFFICE TO COMPLETE FINAL
DETAILS, ACCORDING TO BANGKOK POST.
MR. PAUL VELTE, MANAGING DIRECTOR FROM AIR AMERICA HEAD-
QUARTERS IN WASHINGTON CALLED ON THE AMBASSADOR JULY 2 TO
CONFIRM SUCCESSFUL TRANSITION OF UDORN MAINTENANCE FACILITY
FROM AIR AMERICA TO THAI AM, EFFECTIVE MIDNIGHT JUNE 30.
THAI EMPLOYEES WERE GIVEN FULL SEPARATION PAYMENTS BY CHECK
JUNE 30, INCLUDING INCREASED SEVERANCE PAY IN ACCORDANCE WITH
RTG JUNE 14 AMENDMENTS TO LABOR LAW IN SETTLEMENT OF RECENT
TEXTILE STRIKE. THAI AM PLANS TO TAKE FOUR-DAY BREAK JULY 4-7
TO CATCH ITS BREATH, BUT VELTE EXPECTS OPERATION TO RESUME
JULY 8 WITHOUT ANY OBVIOUS HITCHES.
AS OF TODAY, 71 AMERICAN EMPLOYEES AND THIRD COUNTRY
NATIONALS (TCNS) REMAIN ON AIR AMERICA PAYROLL IN UDORN
TO EASE THE TRANSITION. VELTE EXPECTS HALF OF THESE TO
LEAVE BY AUGUST 1 AND BULK OF REMAINDER IN EARLY
AUGUST. LAST AIR AMERICA EMPLOYEES ATTACHED TO BANGKOK
OFFICE SCHEDULED TO LEAVE NO LATER THAN SEPTEMBER 28.
TO DATE ONLY A FEW US EMPLOYEES HAVE ACCEPTED THAI AM
TERMS, BUT NEGOTIATIONS WITH INDIVIDUALS ARE APPARENTLY
CONTINUING. THIS AM IS CLEARLY RELUCTANT TO HIRE TCNS
AND IS CONTINUING TO SEARCH FOR QUALIFIED THAI CITIZENS
AT THE SAME TIME THAT THEY ARE MAKING TENTATIVE OFFERS
TO AIR AMERICA TCNS. AS FOR THAI EMPLOYEES, VELTE
OPINED THAT THAI AM BANGKOK SALARY SCHEDULES NOW INSTRODUCED
AT UDORN ARE ADEQUATELY COMPARABLE TO AIR AMERICA WAGES
SO THAT ADJUSTMENT WILL NOT CAUSE LABOR PROBLEMS.
WORKLOAD AT TIME OF TRANSITION WAS VERY LOW, APPARENTLY
BECAUSE OF CONSCIOUS WITHHOLDING OF DEFERABLE MAINTENANCE
AND REPAIR JOBS PRIOR TO TRANSFER OF FACILITY. VELTE URGED
PROMPT ACTION BE TAKEN TO CONFIRM MAINTENANCE REQUIREMENTS
UNDER FY75 CONTRACT TO PROVIDE THAI AM WITH ESSENTIAL BASIS
FOR FORWARD PLANNING.
AMBASSADOR CONGRATULATED VELTE ON SUCCESSFUL CONCLUSION
OF TURNOVER ARRANGEMENTS, RECALLING SERIOUS CONCERN TWO
MONTHS AGO THAT DEADLINE COULD NOT BE MET. EMBASSY
CONSIDERS VELTE DESERVES GREAT CREDIT FOR ACCOMPLISHING
THIS TASK IN INTEREST OF USG WHILE AVOIDING NUMEROUS
PITFALLS INHERENT IN SITUATION.
KINTNER
>>>>>>>
March 24, 1973 report called, BAILMENT OF UH-1 H AIRCRAFT TO AIR AMERICA FOR ICCS USE
WE REVIEWED THE COST OF THE BAILMENT TO AIR AMERICA
WITH DEPARTMENT OF DEFENSE. DOD IS WILLING TO WAIVE COST
OF HULL INSURANCE ESTIMATED AT 691,000 DOLS PER ANNUM.
HOWEVER, IF ANY OF THE AIRCRAFT SHOULD BE DAMAGED OR
DESTROYED, USG WOULD RESERVE RIGHT TO FILE AN APPROPRIATE
CLAIM AGAINST THE ICCS. FURTHER, IF AMBASSADOR BELIEVES
IT IS NECESSARY TO DO SO, DOD IS ALSO WILLING TO WAIVE COST
OF AMORTIZATION, ESTIMATED AT 337,000 DOLS PER ANNUM.
COST OF OVERHAULING, ESTIMATED AT 572,000 DOLS PER
ANNUM, CANNOT BE WAIVED. REGULAR OVERHAULING IS OBVIOUSLY
ESSENTIAL FOR EFFICIENT AND SAFE OPERATION OF AIRCRAFT AND
AMOUNT STATED IS OUT- OF- POCKET COST TO US ARMY.
THE FOREGOING PROVIDES ICCS WITH RELIEF FROM APPROXI-
MATELY ONE MILLION DOLS OF BAILMENT COSTS, WHICH WE BELIEVE
IS MAXIMUM POSSIBLE. YOU AUTHORIZED CONVEY THIS INFORMA-
TION TO ICCS. APPRECIATE REPORT ON THEIR REACTION.
DAO BEING SIMILARLY INFORMED THROUGH MILITARY CHANNELS.
ROGERS
>>>>>>>
BAILMENT OF UH-1 H AIRCRAFT TO AIR AMERICA FOR ICCS USE
LETTER FROM AMBASSADOR DELIVERED MARCH 28 INFORMED ICCS
OF BAILMENT SAVINGS REFTEL, INCLUDING WAIVER OF AMORTIZATION
COSTS FOR THE AIRCRAFT. BASED ON OUR ORAL ASSURANCE OF
SUBSTANTIAL REDUCTION OF COSTS ON THE BAILMENT TERMS, ICCS
AMBASSADORS AT URGENTLY CONVENED SUNDAY SESSION MARCH 25
AUTHORIZED AIR AMERICA TO ENTER INTO BAILMENT AGREEMENT,
AND THIS WAS DONE NEXT DAY. AT NO TIME DID ICCS LACK
HELICOPTER SUPPORT.
AMBASSADOR' S LETTER CIRCULATED ALL ICCS DELEGATIONS
MARCH 28, AND CANDEL INFORMS US, WILL BE AGENDA TOPIC AT
MARCH 30 PLENARY SESSION.
EMBASSY GRATEFUL FOR PROMPT AND HELPFUL RESPONSE.
BUNKER
>>>>>>>
April 1973 - AMERICAN KILLED IN ICCS HELICOPTER LOSS
AIR AMERICA SAIGON TELLS US THAT THEY NOTIFIED AIR AMERICA
WASHINGTON OFFICE ON APRIL 8 NAMES OF NEXT OF KIN OF TWO DECEASED
AMERICANS WHO DIED IN APRIL 7 ICCS HELICOPTER LOSS, CHARLES
LEROY OSTERMAN AND TERRY DEAN CLARK. AIR AMERICA' S ESTA-
BLISHED PROCEDURE IS FOR NEXT OF KIN TO BE NOTIFIED BY AIR AMERICA
WASHINGTON OFFICE, WHICH WE ASSUME HAS BEEN DONE.
NAMES AND ADDRESSES OF NEXT OF KIN FOLLOW:
J. H. OSTERMAN ( BROTHER)
16545 APPLE STREET
FOUNTAIN VALLEY, CALIFORNIA 92708
( TELEPHONE 839-5911)
GABRIELE CLARK ( WIFE)
38867 OCOTILLO DRIVE
PALMDALE, CALIFORNIA
( TELEPHONE 805-273-0960)
AS REPORTED IN PARAS 1 AND 2 ( C) OF REF A, MAJOR GENERAL
HOANG ANH TUAN, ACTING CHIEF OF PRG DELEGATION TO FPJMC,
EXPRESSED TO CHIEF OF US DEL, FPJMT- MIA, HIS CONDOLENCES ON
DEATH OF AMERICAN CREW MEMBERS OF ICCS HELICOPTER WITH RE-
QUEST THAT U. S. AUTHORITIES " CONVEY THESE CONDOLENCES TO
FAMILIES OF PERSONNEL INVOLVED." DEPARTMENT MAY WISH TO CON-
SIDER FORWARDING THIS MESSAGE THROUGH AIR AMERICA WASHINGTON
OFFICE TO NEXT OF KIN.
ON OTHER HAND, VERSION OF EVENTS INVOLVING SHOOTING DOWN
OF ICCS HELICOPTER, AS EXPRESSED BY MG TUAN AND OTHER PRG
SPOKESMEN, APPEARS TO CONTAIN NUMEROUS MIS- STATEMENTS OF
FACT WHICH WILL QUICKLY BECOME APPARENT TO PUBLIC. WHOLE INCI-
DENT IS NOW BEING INVESTIGATED BY ICCS.
WE NOTE THAT DEPARTMENT SPOKESMAN ON APRIL 9 ( REF B) RE-
FERRED TO INCIDENT AS QTE TOTALLY CALLOUS FLOUTING OF PEACE
AGREEMENT BY COMMUNIST PARTIES TO THAT AGREEMENT END QTE,
WHILE MG MCALPINE, CHIEF OF CANADIAN MILITARY DELEGATION TO
ICCS, STATED IN SAIGON APRIL 9, IN REPLY TO QUESTION WHETHER
SHOOT- DOWN WAS ACCIDENT, QTE AN ACCIDENT* SURELY, WITH EVERY-
ONE IN THE AREA KNOWING THIS WAS AN APPROVED FLIGHT AND WITH THE
VERBATIM REPORTS OF THE SURVIVORS, I THINK OTHERWISE. END QTE.
WE RECOMMEND THAT THE DEPARTMENT SEND THE FAMILIES OF
OSTERMAN AND CLARK THE CONDOLENCES OF THE USG, MAKING NO MEN-
TION OF THE " CONDOLENCES" OF THE PRG, WHICH SEEM CLEARLY IN-
TENDED TO MASK PRG RESPONSIBILITY FOR SHOOTING DOWN THE ICCS
HELICOPTER. ALSO RECOMMEND THAT THE FAMILIES BE ASSURED THAT
THE TWO PILOTS DID THEIR UTMOST TO SAVE THE LIVES OF THEIR PAS-
SENGERS AND THAT, ACCORDING TO EYEWITNESS ACCOUNT, THE TRAGEDY
WAS
CAUSED BY COMMUNIST MISSILE FIRED IN VIOLATION OF CEASE- FIRE AND
IN VIOLATION OF PRG' S OWN ASSURANCES THAT THE FLIGHT WOULD BE UN-
MOLESTED.
WHITEHOUSE
>>>>>>>
April 1973 - ICCS HELICOPTER INCIDENT IN QUANG TRI APRIL 7: ICCS INVESTIGATION
POLOFF HUE REPORTS THAT REGION I ICCS INVESTIGATING
PANEL QUESTIONED THE PILOT OF AIR AMERICA HELICOPTER
#115, CAPT DEVOLL, FOR A TOTAL OF FIVE HOURS ON APRIL 16
IN HUE WITH AIR AMERICA REPRESENTATIVES AND POLOFF CARROL
PIESENT. A SET OF 20 QUESTIONS, PREPARED AND AGREED UPON
IN ADVANCE BY ALL FOUR DELEGATIONS, WAS PUT TO DEVOLL.
FOLLOWING WHICH EACH DELEGATION HAD THE OPPORTUNITY TO ASK
SUPPLEMENTARY QUESTIONS. THE THRUST OF THE CANDEL QUESTION-
ING WAS AIMED AT THE ISSUES OF (1) WHETHER THE AIRCRAFT
COULD HAVE BEEN MOVED, AND (2) WHETHER THE AREA OF THE
LANDING AND CRASH SITES WAS THE SAME AS THE AREA VISITED
BY THE ICCS INVESTIGATING TEAM ON APRIL 11. THE INDODEL
CONCENTRATED ON ELICITING THE REASONS WHY THE PILOT WAS
CERTAIN THE FLIGHT WAS ON COURSE, WHILE THE HUNGDEL LINE
OF QUESTIONING SOUGHT TO ESTABLISH THE CAUSE OF THE
CIASH. THE POLDEL, WHICH CHAIRED THE SESSION, MADE NO
SEPARATE INQUIRIES. THE HEARING WAS CONDUCTED IN A
CORDIAL ATMOSPHERE WITH ANY PRECONCEIVED THEORIES FAIRLY
WELL MASKED. DEVOCL APPEARED ENTIRELY FORTHCOMING AND
COOPERATIVE.
DEVOLL' S TESTIMONY GENERALLY FOLLOWED THE LINES OUTLINED
IN REF A WITH A MAJOR EXCEPTION THAT IT WAS MADE MUCH
CLEARER THAT HELICOPTER #115 WAS RELYING EXCLUSIVELY ON
FOLLOWING HELICOPTER #006 AND THE PRG LIAISON OFFICER
ACTING AS NAVIGATOR ABOARD THAT SHIP. IN A CONVERSATION
WITH POLOFF CARROL FOLLOWING HIS TESTIMONY, CAPT DEVOCL
CONCEDED THAT IT WAS POSSIBLE THAT THE PRG NAVIGATOR AND
THE PILOT OF HELICOPTER #006 COULD HAVE ERRED BY FOLLOWING
" ROAD 14" TO THE LEFT INSTEAD OF ROUTE 9 TO THE RIGHT
WITHOUT EITHER PILOT NOTICING THE ERROR. POLOFF COMMENTED
THAT DEVELL' S TESTIMONY GENERALLY TENDED TO LEND CREDENCE
TO THE THEORY THAT THE HELICOPTERS FOLLOWED " ROAD 14"
AFTER PASSING KHE SANH ( REFS B, C).
THE ICCS INVESTIGATING TEAM PLANS TO INTERVIEW THE OTHER
TWO CREW MEMBERS OF HELICOPTER #115 ON APRIL 17. IN
ADDITION, BEFORE THE INVESTIGATION IS CONCLUDED, THE
INVESTIGATING PANEL WILL QUESTION AT LEAST TWO OTHER
SURVIVORS OF THE INCIDENT AND THE PRG INTERPRETER " TWE"
WHO WAS ABOARD #115.
OUTLINE OF TESTIMONY WICL BE FORWARDED BY AIRGRAM.
>>>>>>>
April 1973 - CONTINENTAL AIR SERVICES
FOR NOOTER FROM WHITEHOUSE
CONTINENTAL AIR SERVICES REPRESENTATIVES VISITED ME LAST WEEK
TO COMPLAIN ABOUT RECENT DAO DECISION TO TERMINATE THEIR AIR
SUPPORT CONTRACT WITH DOD CONTRACTORS. THIS DECISION WAS TAKEN
BECAUSE OF VERY SUBSTANTIAL SAVINGS IN CONTRACT COSTS WHICH CAN BE
REALIZED FROM CONSOLIDATION OF MISSION AND CONTRACTOR AIR SUPPORT
IN SINGLE UMBRELLA CONTRACT. CONTINENTAL HAD NOSE OUT OF JOINT
BECAUSE THEY LEARNED OF DECISION ONLY INDIRECTLY FROM CONTRACTORS
WHO REPORTED THEY HAD BEEN INSTRUCTED TO FLY AIR AMERICA ONLY.
CONTINENTAL OFFICIALS CLAIMED THEY COULD BE COMPETITIVE WITH AIR
AMERICA IF GIVEN A CHANCE AND NOTED THATVVN HAS NEVER AUTHORIZED
AIR AMERICA TO HANDLE CONTRACTOR AIR SERVICES WHICH CONTINENTAL
AUTHORIZED TO DO ON BASIS LONG- STANDING JOINT VENTURE WITH AIR
VIETNAM. FINALLY, CONTINENTAL OFFICIALS INDICATED THEY WOULD RAISE
ISSUE IN WASHINGTON IF NECESSARY AND MADE IT CLEAR THEY WOULD TRY
TO MAKE AN ISSUE OF AIR AMERICA' S QUESTIONABLE STATUS AS PRIVATE
COMPANY IN CONTRAST TO THEIR SIMON- PURE STATUS.
SUBSEQUENT TO MEETING, I DISCUSSED ISSUE WITH DAO AND
AGREEMENT WAS REACHED TO EXTEND CONTINENTAL CONTRACT WITH
FEDERAL ELECTRIC THROUGH THE END OF JUNE AND CONTINENTAL HAS BEEN SO
INFORMED. MORE IMPORTANTLY, I BELIEVE THE QUESTION NEEDS TO BE
ADDRESSED OF WHETHER CONTRACT WITH AIR AMERICA SHOULD BE
RENEWED THROUGH FY 74, OR WHETHER BIDS SHOULD BE SOLICITED FOR
FY 74 AIR SERVICE REQUIREMENTS. SINCE AIR AMERICA CONTRACT HAS
BEEN EXTENDED THROUGH SEPTEMBER, THERE WOULD APPEAR TO BE
ADEQUATE
TIME IN WHICH TO REVIEW SITUATION CAREFULLY TO SEE IF CHANGED CON-
DITIONS HERE NOW PERMIT SOLICITING BIDS. EVEN IF IT IS UNLIKELY THAT
CONTINENTAL OR ANY OTHER COMPANY CAN COMPETE WITH AIR AMERICA IN
SUCH SOLICITATION IF NOTION OF CONSOLIDATING AIR SERVICES IS ADHERED
TO AS SEEMS FISCALLY PRUDENT, IT MAY NEVERTHELESS BE
DEFIRABLE TO ALLOW CONTINENTAL A COMPETITIVE CRACK AT THE CONTRACT.
WE REALIZE THAT THIS PROBLEM IS ONE WHICH WILL HAVE TO BE WORKED
OUT WITH THE OTHER INTERESTED AGENCIES AND DEPARTMENTS, BUT WE
WOULD BE INTERESTED TO RECEIVE YOUR INITIAL REACTION.
BUNKER
>>>>>>>
May 1973 - U. S. AERIAL RECONNAISSANCE AND ICCS FLIGHTS
PRIOR RECEIPT REFTEL WHITEHOUSE AND BG MAGLIONE, USAF,
MET WITH CANDELS GAUVIN AND SINGLETON. CANADIANS WERE
INFORMED THAT A U. S. DRONE HAD BEEN IN THE NORTHERN QUANG TRI
THE MORNING OF MAY 2. WE STRESSED THAT HELICOPTERS HAD
RECEIVED FIRE AT 1036 LOCAL WHEREAS ACCORDING TO 7 AF DRONE
HAD NOT PASSED THROUGH AREA UNTIL 1050. THIS USAF INFORMATION
APPEARED TO BE CONFIRMED BY UNIDENTIFIED OBSERVERS ON THE SCENE.
CANDELS WERE ASSURED THAT MEASURES WERE BEING TAKEN TO
OBTAIN FROM AIR AMERICA ICCS FLIGHT PLANS TO CONTESTED
OR ENEMY CONTROLLED AREAS ( XA MAT, AN LOC, DUC CO, BEN HET
AND NORTHERN QUANG TRI) IN ORDER TO AVOID REPETITION THIS
SITUATION.
DAO ( MAGLIONE) WILL ALSO DISCUSS THIS MATTER WITH VNAF AND
SEEK ASSURANCES THAT IT WILL TAKE SIMILAR PRECAUTIONS.
STATEMENTS MADE ON THIS SUBJECT AT PRG WEEKLY PRESS
CONFERENCE AT TAN SON NHUT FOLLOW SEPTEL. WE HAVE DECLINED
COMMENT ON DRONE IN RESPONSE SEVERAL PRESS QUERIES.
CANADIANS HOPE PRESS TREATMENT CAN BE MUTED SO THAT DRONE
ISSUE DOES NOT DIVERT ATTENTION FROM FACT PRG FIRED AT HELICOPTERS.
THEY RECALL THAT DISCUSSION OF LAO BAO INCIDENT BECAME CENTERED
ON WHEREABLUTS OF DOWNED CHOPPERS RATHER THAN ON SHOOTING
INCIDENT. WE SHARE THEIR VIEW THAT DRONE SHOULD NOT BECOME A
RED HERRING.
BUNKER
>>>>>>>
May 1973 - REPORT OF POSSIBLE U. S. CASUALTY - MISSING PORTER AIRCRAFT
ON MAY 8, SEARCH FOR MISSING CASI PORTER AIRCRAFT WAS
CONTINUED WITHOUT RESULTS. SEARCH INCLUDED PHOTO COVERAGE GIVING
PARTICULAR EMPHASIS TO AIRSTRIPS IN THE AREA. RESULTS OF PHOTO
COVERAGE ARE NOT YET AVAILABLE. SAR CONDUCTED GENERALLY NORTH
EAST
OF THE AREA WHERE MISSING AIRCRAFT WAS SCHEDULED TO OPERATE
BECAUSE OF STRONG SOUTHWEST WINDS REPORTED AT TIME MISSING
AIRCRAFT FIRST REPORTED DIFFICULTY. NINE AIRCRAFT, INCLUDING
FIXED WING AND HELICOPTERS, PROVIDED BY AIR AMERICA AND CASI,
PARTICIPATED IN SEARCH 8 MAY. IT IS PLANNED THAT ADDITIONAL
SEARCH WILL BE CONTINUED 9 MAY.
RREGARDING REFTEL B, WE DID NOT, OF COURSE, INTEND TO USE TERM
" VISUAL RECONNAISSANCE" IN ANY PUBLIC STATEMENT, WHICH
CASI MIGHT MAKE OR IN ANY CONTACT WITH LPF. IN CONNECTION WITH
LATTER, I DO NOT PLAN TO RAISE SUBJECT OF MISSING AIRCRAFT WITH
PHOUMI VONGVICHIT UNTIL WE HAVE EXHAUSTED OUR OWN MEANS OF
DETERMINING FATE OF AIRCRAFT AND CREW.
DEAN
>>>>>>>
May 1973 - ICCS AIR SERVICES
BEGIN SUMMARY: AS GVN HAS NOT BEEN FORTHCOMING TO DATE
IN ASSISTING ICCS WITH FACILITIES NEEDED IN CONNECTION AIR
SERVICES CONTRACT, AMBASSADOR WHITEHOUSE CALLED ON PRIME MINISTER
MAY 8 AND RAISED ISSUES WITH HIM. KHIEM SEEMED FAVORABLY
DISPOSED. DURING MAY 10 CALL ON FOREIGN MINISTER, HOWEVER,
ICCS CHAIRMAN AND SECRETARY GENERAL RAN INTO FAMILIAR ARGUMENT
THAT AIR VIET- NAM COULD HANDLE ICCS AIR SUPPORT. END SUMMARY
GVN HAS NOT BEEN FORTHCOMING IN MATTER OF ICCS AIR SERVICES
CONTRACT. THERE ARE THREE PRIMARY AREAS WHERE GVN SUPPORT IS
NEEDED. IN THE FIRST, GROUND SUPPORT FACILITIES, THE ICCS WOULD
LIKE WHERE POSSIBLE TO HAVE ITS CONTRACTOR, AIR AMERICA, SHARE
FACILITIES WITH THE GVN AT THE SEVEN ICCS REGIONAL LOCATIONS, IN
ORDER TO PROVIDE FASTER RESPONSE TO INVESTIGATORY REQUESTS, AND
TO SAVE POSITIONING AND DEPOSITIONING COSTS. IN A BELATED RESPONSE
TO AMBASSADOR GAUVIN' S FEBRUARY 28 LETTER REQUESTING THIS
COOPERATION, THE PRIME MINISTER' S OFFICE REPLIED ON APRIL 7,
CITING ARTICLE 7 OF THE 1944 CHICAGO CONVENTION, TO THE EFFECT
THAT " IT IS ADVISABLE FOR THE ICCS TO OFFER TO OUR NATIONAL AIRLINE
THE OPPORTUNITY TO FULFILL ITS LEGITIMATE DUTY". FURTHER MATTERS
AT ISSUE INCLUDE VISAS FOR 65 AIR AMERICA TCN CREW AND MAINTENANCE
PERSONNEL, AND IN ORDER TO REDUCE COSTS TO THE ICCS AND
EVENTUALLY TO THE PARIS AGREEMENT SIGNATORIES, THE PROVISION
OF INVITED CONTRACTOR STATUS FOR FOREIGN FIRMS WHICH ARE PERFORM-
ING SERVICES FOR THE ICCS.
ICCS HAS REPEATEDLY ATTEMPTED TO MEET WITH APPROPRIATE GVN
OFFICIALS IN ORDER TO OBTAIN ASSISTANCE AND TO GET ACROSS THE
POINT THAT IT IS SIMPLY NOT IN THE CARDS THAT AIR VIET- NAM WILL
BECOME RESPONSIBLE FOR ICCS AIR SERVICES. ( AIR VIET- NAM WAS A
BIDDER BEFORE THE CONTRACT WAS AWARDED TO AIR AMERICA. WE ARE
TOLD THAT IT S BID WAS HIGHER THAN AIR AMERICA' S, AND
INFER THAT IN ANY EVENT, THE ICCS WOULD NOT PERMIT ONE OF THE TWO
SOUTH VIETNAMESE PARTIES TO BE CHARGED WITH ICCS TRANSPORTATION.)
ON MAY 8, AMBASSADOR WHITEHOUSE CALLED ON PRIME MINISTER
AND RAISED THE MATTER WITH HIM. AMBASSADOR SAID THAT IT WAS
TOTALLY UNREALISTIC TO THINK THAT THE ICCS WOULD USE AIR VIET- NAM,
AND THAT REFUSING INVITED CONTRACTOR STATUS WOULD MERELY RAISE
BILLS WHICH WOULD BE PASSED ON TO THE PARIS SIGNATORIES. HE
POINTED OUT THAT CONSONANT WITH ITS RESPONSIBILITIES UNDERTAKEN
IN THE PARIS AGREEMENT, THAT IT WOULD BE APPROPRIATE FOR THE GVN
TO GRANT USE OF GROUND FACILITIES AT THE SEVEN REGIONAL ICCS
SITES. AMBASSADOR ASKED IN THIS REGARD THAT A HIGH- RANKING
OFFICER BE ASSIGNED TO ACCOMPANY ICCS AND AIR AMERICA
REPRESENTATIVESTO SURVEY THE GROUND FACILITIES IN QUESTION. KHIEM SEEMED
FAVORABLY DISPOSED TO THIS PRESENTATION.
ICCS CHAIRMAN WASILEWSKI AND SECRETARY GENERAL EFFENDI NUR,
IN CALL ON WHITEHOUSE MAY 10 ON ICCS BUDGETARY MATTERS ( SEPTEL),
SAID THAT THEY HAD RAISED ICCS AIR SERVICES QUESTIONS WITH FOREIGN
MINISTER LAM THAT MORNING. TO THEIR DISAPPOINTMENT, LAM HAD
MERELY REPEATED FAMILIAR THEME THAT AIR VIET- NAM SHOULD BE
EMPLOYED. THERE THE MATTER STANDS AT PRESENT.
WE ARE HOPEFUL THAT KHIEM' S MORE FORTHCOMING ATTITUDE WILL
CRYSTALIZE IN A DECISION FAVORABLE TO AIR AMERIA AND WE ARE
URGING THE ICCS TO PRESS THE MATTER DIRECTLY WITH HIM.
WHITEHOUSE
>>>>>>>
July 1973 - AIR AMERICA HELICOPTER HIT
AIR AMERICA HELICOPTER HIT BY SEVERAL ROUNDS OF SMALL
ARMS FIRE ABOUT 10 MILES SOUTHWEST OF BEN TRE KIEN HOA PROVINCE
AT ABOUT 0945 THIS MORNING JULY 12. THREE ROUNDS PENETRATED THROUGH
UNOCCUPIED CO-PILOT'S SEAT AND ONE HIT ROTOR BLADE. CHOPPER
LANDED SAFELY AT BEN TRE. NO RPT NO INJURIES.
LEHMANN
>>>>>>>
September 1973 - ICCS: AIR AIR AMERICAN CONTRACT
THE FOLLOWING IS THE TEXT OF THE MOST RECENT LETTER DATED 6
SEPTEMBER 1973 FROM AIR AMERICA TO THE ICCS DIRGEN. THIS LETTER
MAKES IT QUITE CLEAR THAT AIR AMERICA IS PREPARED TO CONTINUE
SERVICE TO ICCS AS LONG AS AIR AMERICA IS PAID PROMPTLY. THIS
INFORMATION WAS PROVIDED VERBALLY IN PERSON TO DIRGEN NUR BEFORE
AUGUST 31 MILITARY CHIEFS MEETING AT WHICH GEN SZUCS OF
HUNGDEL ANNOUNCED WITHDRAWAL OF HUNGDEL MEMBERS FROM CERTAIN SITES
(REF A).
2. BEGIN QTE
DEAR MR AMBASSADOR:
RECEIPT OF YOUR LETTER 7502-3 (DFLS) DATED 30 AUGUST AND
YOUR LETTER 7502-3 (TPT) IS ACKNOWLEDGED.
WHILE CONCERNED THAT THE YET UNAPPROVED ICCS BUDGET HAS PRECLUDED
ICCS FROM FULFILLING ITS OBLIGATION TO MAINTAIN THE ENCUMBERED
ACCOUNT IN THE CHARTERED BANK FROM WHICH PAYMENTS ARE MADE FOR
SERVICES RENDERED BY AIR AMERICA, WE ACKNOWLEDGED THAT PAYMENT OF
INVOICES SUBMITTED HAS BEEN PROMPT. WE DESIRE TO ASSIST IN ANY WAY
WE CAN AND PREPARED TO CONTINUE SERVICES DURING THIS CRITICAL
PERIOD PENDING ICCS BUDGET APPROVAL SUBJECT TO CONTINUED PROMPT
PAYMENT OF INVOICES WHEN SUBMITTED.
UPON APPROVAL OF THE ICCS BUDGET WE ANTICIPATE MONIES WILL BE
DEPOSITED TO THE ENCUMBERED ACCOUNT TO BRING THE FUNDS IN THE ACCOUNT
TO THE AGREED USD 1.5 MILLION LEVEL.
YOUR UNDERSTANDING IN THIS MATTER IS GREATLY APPRECIATED. AIR
AMERICA, INC. TAKES THIS OPPORTUNITY TO RENEW TO YOUR SECRETARIAT
AND TO THE ICCS, THE ASSURANCES OF ITS CONTINUED HIGH ESTEEM.
VERY TRULY YOURS,
AIR AMERICA, INC.
(SIGNED)
J.R. BARNHISEL
VICE PRESIDENT-SOUTH
DIVISION
END QTE.
APPLING
>>>>>>>
August 1973 - AIR SERVICES IN SUPPORT OF U.S. MISSION CIVILIAN OPERATIONS
FORMATION OF THE NEW LAO COALITION GOVERNMENT APPEARS
NEAR, AND IN THIS CONTEXT WE HAVE BEEN REVIEWING OUR
EARLIER CEASEFIRE PLANNING PAPERS ON FUTURE AIR SERVICES.
EXPERIENCE DURING THE PAST EIGHT MONTHS VALIDATES
ASSUMPTION WE MADE LAST DECEMBER THAT RLAF IN POST
CEASEFIRE ENVIRONMENT WILL BE ABLE TO PROVIDE ALL AIR
SERVICE SUPPORT FOR RLG MILITARY FORCES, BUT THAT THERE
WILL BE A CONTINUING REQUIREMENT FOR CONTRACT AIR SERVICES
TO DELIVER NON-MILITARY SUPPLIES, SUCH AS SUBSISTENCE AND
REFUGEE COMMODITIES, AND TO TRANSPORT PEOPLE, INCLUDING
MISSION PERSONNEL.
IN REVIEWING MEANS OF PROVIDING NON-MILITARY AIRLIFT
AND CORRESPONDING GROUND SERVICE SUPPORT, WE BELIEVE
ANALYSIS IN REF B IS STILL VALID; I.E. THAT CURRENT
CONTRACTORS AIR AMERICA (AA) AND CONTINENTAL AIR SERVICES,
INC. (CASI) WILL BE OBLIGED TO WITHDRAW FORM LAOS SOMETIME
AFTER FORMATION OF THE NEW COALITION GOVERNMENT. ALTHOUGH
CASI HAD NOT PREVIOUSLY BEEN SUBJECT TO SAME LPF ATTACKS
AS AA, CAPTURE OF CASI PILOT EMMET KAY, MAY 7, HAS
PROBABLY PREJUDICED CASI'S LONG RUN CHANCES OF CONTINUING
OPERATIONS IN LAOS. OUR VIEW THAT LPF WILL HAVE INFLUENTIAL
VOICE IN DETERMINING FUTURE OF THESE TWO CARRIERS HAS
RECENTLY BEEN REINFORCED BY APPARENT AGREEMENT BETWEEN TWO
LAO PARTIES THAT IN NEW PGNU LPF WILL HOLD MINISTRY OF
PUBLIC WORKS OF WHICH LAO DIRECTORATE OF CIVIL AVAIATION
(DCA) IS A PART. IN THIS CONNECTION, ARIZONA HELICOPTERS
(AHI), WITH ABOUT 14 AMERICAN EMPLOYEES AND 7 ROTARY WING
AIRCRAFT UNDER CONTRACT TO USG, IS (BECAUSE OF ITS SIZE
AND THE NATURE OF ITS ACTIVITIES) A MUCH LESS CONTROVERSIAL
FIRM AND DURING PGNU PERIOD MAY BE PERMITTED TO CONTINUE
ITS OPERATIONS TRANSPORTING MISSION PERSONNEL IN LAOS.
UNDER THESE CIRCUMSTANCES, WE BELIEVE IT PRUDENT TO
BEGIN THE TRANSITION TO AN ALTERNATIVE MEANS OF PROVIDING
THE REQUIRED CIVILIAN CARGO-CARRYING SERVICES. THE RLG'S
NATIONAL FLAG CARRIER ROYAL AIR LAO (RAL) IS THE MOST
LOGICAL ALTERNATIVE. IT IS HEADED BY THE SON OF THE PRIME
MINISTER; IT NOW OPERATES INTERNATIONAL FLIGHTS TO BANGKOK,
PHNOM PENH, SAIGON AND HONG KONG; IT HAS SCHEDULE FLIGHTS
TO MAJOR CITIES IN THE RLG ZONE; IT IS THE NATIONAL CARRIER
AND SHOULD, THEREFORE, BE MOST ACCEPTABLE TO THE LPF; AND
IT SEEMS TO HAVE THE MANAGEMENT CAPACITY AND WILL TO
ACCOMMODATE OUR REQUIREMENTS. MOREOVER IT HAS A CONTRACTUAL
ARRANGEMENT WITH AN AMERICAN COMPANY, TRANSAIR, FOR TWO
ELECTRAS TO ASSURE ITS INTERNATIONAL SCHEDULES. AT
PRESENT TIME, TRANSAIR ALREADY EMPLOYS ABOUT 10 AMERICANS
IN VIENTIANE.
WE THINK, AS A FIRST STEP, RAL COULD ASSUME A
SIGNIFICANT PORTION OF THE RICE AIRDROP MISSION NOW
BEING PERFORMED BY AIR AMERICA AND CONTINENTAL. THE US
MISSION IS CURRENTLY CONTRACTING FIVE C-46'S FOR RICE AIR
DROPS IN LAOS. TITLE TO TWO OF THESE AIRPLANES NOW OPERATED
BY AIR AMERICA LIES WITH RLG (THEY WERE GRANTED TO RLG IN
1964 BY USG); AND AIR AMERICA PROVIDES MAINTENANCE AND AIR
CREWS. RAL COULD OPERATE THESE TWO AIRCRAFT, EMPLOYING
AMERICAN PILOTS AND ARRANGING FOR THEIR MAINTENANCE, THE
LATTER, FOR EXAMPLE, BEING DONE THROUGH ITS ARRANGEMENT
WITH TRANSAIR. WE WOULD ADJUST THE CURRENT CONTRACT WITH
AIR AMERICA EFFECTIVE OCTOBER 1 AND ENTER INTO A NEW CON-
TRACT FOR THE TWO C-46'S WITH RAL EFFECTIVE THAT DATE.
THE TWO PLANES ARE NOW FLOWN ON AN AVERAGE OF 240 HOURS
PER MONTH OR 720 HOURS PER QUARTER AT AN AVERAGE COST
OF APPROXIMATELY $200 PER HOUR FOR A TOTAL
QUARTERLY CONTRACT COST OF $154 THOUSAND. IT WOULD
APPEAR REASONABLE FOR OUR USAID MISSION TO BECOME THE
CONTRACTOR APPLYING EXISTING COST SHARING FORMULAE.
THE STEPS OUTLINE ABOVE WOULD BE A FIRST MOVE IN
ARRANGING ALTERNATIVE MEANS TO OBTAIN REQUIRED AIR
SERVICES FOR THE FUTURE AND WOULD SIGNAL OUT INTENT TO
"LAO-IZE" IN THIS AREA. CASI WOULD STILL BE OPERATING
(A) THREE C 46'S FOR LARGE DROP ZONE MISSIONS AND FOR
POINT TO POINT MOVEMENT OF BULK CARGO AND (B) STOL
AIRCRAFT FOR MISSIONS TO SMALL INACCESSIBLE DROP ZONES.
WE WOULD ENVISION CONTINUING TO CONTRACT WITH CASI FOR
THESE AIRCRAFT AFTER OCTOBER 1 IF STILL ACCEPTABLE TO
THE PGNU. WE ARE STILL CONSIDERING THE FUTURE OF AIR
AMERICA GROUND SERVICES CONTRACT. AS EVENTS UNFOLD, WE
WILL HAVE A CLEARER VIEW OF OUR REQUIREMENTS AND OF THE
NATURE OF THE ENVIRONMENT IN WHICH WE MUST OPERATE; AND IN
THIS LIGHT WE WILL CONTINUE TO EXAMINE ADDITIONAL MEASURES
THAT MIGHT BE DESIRABLE OR NECESSARY TO "LAO-IZE" AIR
SERVICES NOW PROVIDED BY USG CONTRACTORS.
WE WILL NEXT WEEK BE INFORMING RLG OF OUR INTENTION
TO OFFER RAL CONTRACT TO OPERATE TWO C-46'S.
DEAN
>>>>>>>
October 1974 - ICCS FINANCES: STATUS OF CONTRACTS
IN ADDITION TO PA&E AND AIR AMERICA, ICCS LISTS THE FOLLOWING
SIX FIRMS AS CONTRACTORS: INDEX, FUJI-XEROX, AMERICAN ENTER-
PRISES, GRAND PACIFIC, MOVIE SERVICE CENTER, AND DR. NGUYEN
DINH LY.
INDEX IS A LOCAL FIRM ENTIRELY OWNED, AS FAR AS WE KNOW, BY
ROBERT BURNS, AN AMERICAN EX-USAID EMPLOYEE. INDEX IS
RESPONSIBLE FOR OPERATING THE ICCS OFFICERS' CLUB, MESS, AND
SNACK BAR IN SAIGON, AS WELL AS A SMALL PX-COMMISSARY
FACILITY. IN VIEW OF HIS FIRM'S DEPENDENCE ON US INSTALLATIONS,
BURNS MAINTAINS CLOSE CONTACT WITH THE EMBASSY'S ICCS LIAISON
UNIT. ACCORDING TO BURNS, HIS MONTHLY BILL TO THE ICCS IS
$9,881.50.
FUJI-XEROX IS A JAPANESE FIRM WITH A JAPANESE LOCAL MANAGEH.
THE CONTRACT WITH THE ICCS PROVIDES FOR THE USUAL SERVICE OF
PHOTOCOPY MACHINES. THE CONTRACT SPECIFIES THAT PAYMENT WILL BE
MADE TO THE FIRM'S HONG KONG BANK. THE LAST MONTHLY BILLING WAS
$12,713 ACCORDING TO PA&E. USDAO AND USAID ALSO HAVE CON-
TRACTS WITH THIS FIRM.
AMERICAN ENTERPRISES IS A SMALL LOCAL FIRM OWNED BY A
RESIDENT AMERICAN NAMED A. KELLY SHELTON. THE CONTRACT
REQUIRES THE FIRM TO BE READY TO PROVIDE THREE BOATS TO THE ICCS
FOR WATERBORNE TRANSPORTATION AT THE ICCS REGIONAL HEADQUARTERS
AT CAN THO AND MY THO, AT A COST OF SOME $1,800 PER MONTH.
GRAND PACIFIC SERVICES IS AN AMERICAN FIRM WITH ITS HEAD
OFFICE IN GUAN BUT THE OWNER LIVES IN HONOLULU. THE LOCAL MANAGER,
KAP JIN LEE, IS A KOREAN NATIONAL. THE CONTRACT PROVIDES THAT
GRAND PACIFIC WILL UNDERTAKE "MINOR CONSTRUCTION PROJECTS" FOR
THE ICCS ON A COST-PLUS BASIS. THE ICCS PROVIDER GRANL PICIFIC
WITH MODEST OFFICE AND WAREHOUSE SPACE IN THE ICCS AREA AT
TAN SON NHUT. THE ICCS HAS NOT INCURRED ANY BILLS FROM THIS
CONTRACTOR RECENTLY BECAUSE IT HAS NOT ORDERED ANY CONSTRUCTION
WORK.
MOVIE SERVICE CENTER IS A LOCAL VIETNAMESE FIRM WHICH PRO-
VIDES MOVIES FOR THE ICCS REGIONAL HEADQUARTERS IN THE FIELD FOR
APPROXIMATELY $850 PER MONTH. DR. NGUYEN DINH LY IS A
VIETNAMESE WHOSE LABORATORY PROVIDES X-RAY SERVICES GOR THE
ICCS, THE CONTRACT PROVIDING FOR A CHARGE OF $2.28 FOR EACH X-
RAY. ACCORDING TO AN ICCS SECRETARIAT OFFICIAL THE COST OF THIS
CONTRACT IS LESS THAN $300 PER MONTH.
COPIES OF FIVE OF THESE CONTRACTS ARE BEING POUCHED TO EA/
VN.
RE QUESTIONS 2 AND 3 OF REFTEL, PA&E SUBMITTED TO THE ICCS
A DRAFT OF A NEW COMPREHENSIVE CONTRACT AT THE END OF AUGUST.
THIS DRAFT IS STILL BEING CONSIDERED BY THE ICCS AD HOC COMMITTEE
ON CONTRACTS. MEANWHILE, BY INFORMAL AGREEMENT PA&E IS CON-
TINUING TO WORK ON THE BASIS OF THE EGPIRED CONTRACT EXCEPT THAT
THE ICCS HAS UNDERTAKEN TO PAY ALL PA&E INVOICES WITHIN FIVE
DAYS OF RECEIPT AS LONG AS THE ICCS HAS FUNDS, AND PA&E'S FEE
HAS BEEN RAISED TO 4.25 PERCENT. THE PRIMARY DIFFERENCE IN
THE MOST RECENT PATTERN OF PA&E COSTS FROM THE PATTERN REPORTED
IN SAIGON'S 11562 HAS BEEN A GREAT DECREASE IN THE COST OF AUTO-
MOBILE GASOLINE AFTER THE VIETNAMESE TAX WAS REMOVED (SAIGON
13232). THE COST OF SECURITY SERVICES MAY INCREASE, PARTICULARLY
SINCE THE RECENT BURGLARY OF IRANIAN AMBASSADOR SADRY'S
RESIDENCE SHOWED THE NEED FOR MORE GUARDS IN THAT ICCS COM-
POUND. PA&E ALSO FORECASTS REDUCTIONS IN PROJECTED CAPITAL
EXPENDITURES, MATERIAL COSTS, BUILDING AND GROUND MAINTENANCE,
AND GENERAL REPAIRS. PA&E HAS WORKED UP A NEW DRAFT BUDGET
FOR THE ICCS FOR THE LAST SIX MONTHS OF ITS CURRENT FISCAL YEAR.
DETERMINABLE NEW PATTERN OF PA&E CONTRACT COSTS WILL DEPEND
ON THE NEW CONTRACT AND ON THE REVISED BUDGET FOR THE REMAINING
SIX MONTHS. WILL REPORT ON OR POUCH DOCUMENTATION AS IT BE-
COMES AVAILABLE.
MEANWHILE, AIR AMERICA ON OCTOBER 4 SUBMITTED A PROPOSAL
TO THE ICCS FR A REDUCTION OF AIR SERVICES WITHIN ITS PRESENT
CONTRACT WHICH WOULD REDUCE MONTHLY COSTS BY AN ESTIMATED
$83,000. THIS PROPOSAL IS NOW BEING CONSIDERED BY THE ICCS
MILITARY COMMITTEE. TEXT POUCHED.
MARTIN
>>>>>>>
September 1974 - ICCS FINANCES: AIR AMERICA PLANS FOR TERMINATION OF SERVICES
THERE FOLLOWS TEXT OF SEPTEMBER 18 LETTER TO EA DEPUTY
ASSISTANT SECRETARY FROM AIR AMERICA PRESIDENT GRUNDY IN
WHICH GRUNDY INFORMS US THAT AIR AMERICA WILL TERMINATE
SERVICES FOR ICCS ON SEPTEMBER 30 UNLESS ICCS DEBTS OF AP-
PROXIMATELY 2 MILLION DOLLARS SETTLED BY THAT DATE.
BEGIN TEXT:
DEAR SIR:
AS YOU MAY KNOW, IT WAS WITH SOME RELUCTANCE THAT AIR
AMERICA AT THE DEPARTMENT'S REQUEST AGREED TO CONTINUE FLY-
ING SERVICES IN SUPPORT OF THE INTERNATIONAL COMMISSION
CONTROL AND SUPERVISION (ICCS) IN VIETNAM IN MARCH OF THIS
YEAR. PART OF THIS RELUCTANCE STEMMED FROM THE DIFFICULTIES
WE HAD EXPERIENCED IN THE PREVIOUS YEAR IN OBTAINING PAY-
MENT FOR SERVICES RENDERED UNDER THE ICCS CONTRACT. A
SECOND FACTOR WAS THAT THE COMPANY HAD MADE THE DECISION TO
WITHDRAW FROM ALL CONTRACTS IN THE FAR EAST DURING THE NEXT
YEAR. IN THE END, HOWEVER, WE DID ACCEPT A FURTHER CON-
TRACT IN SUPPORT OF THE ICCS ON THE BASIS THAT WE HAD THE
PROVEN CAPABILITY TO PERFORM THE SERVICES AND WE KNEW
- -
CONTINUATION OF THIS SERVICE WAS IN THE POLICY INTEREST OF
THE U. S. GOVERNMENT.
OUR EXPERIENCE IN RECEIVING PAYMENT FOR SERVICES RENDERED
SINCE THE EFFECTIVE DATE OF OUR NEW CONTRACT ON 1 MARCH
1974 HAS BEEN EXTREMELY DISAPPOINTING AND A MATTER OF
GRAVE CONCERN TO OUR COMPANY. AT THIS POINT IN TIME WHEN
OUR COMPANY IS UNDERGOING RETRENCHMENT, WE ARE CONCERNED
BOTH WITH THE DELINQUENCY IN PAYMENTS RECEIVED, AND THE
IMPACT OF THESE ARREARS IN MEETING OUR CASH REQUIREMENTS.
UNLESS ADDITIONAL PAYMENTS ARE RECEIVED PRIOR TO 30
SEPTEMBER 1974, OUR PROJECTED ESTIMATE OF THE INDEBTEDNESS
OF THE ICCS FOR SERVICES PERFORMED BY AIR AMERICA TO THAT
DATE WILL APPROXIMATE 2 MILLION DOLLARS. OUR CORPORATION
HAS HAD A LONG HISTORY OF PROVIDING SATISFACTORY SERVICES
IN SUPPORT OF U. S. GOVERNMENT PROGRAMS IN THE FAR EAST
AND IT IS CONTRARY TO OUR BASIC CORPORATE OBJECTIVES TO
CONTINUE SERVICES UNDER A CONTRACT WHEREIN PAYMENT FOR
SERVICES RENDERED IS A CONTINUING AND MAJOR PROBLEM. IT
IS FOR THESE REASONS THAT I HAVE BEEN ADVISED BY THE
CORPORATE BOARD OF DIRECTORS THAT I MUST SERVE NOTICE THAT
I HAVE NO ALTERNATIVE BUT TO DIRECT THAT SERVICES UNDER
THE ICCS CONTRACT CEASE UNLESS PAYMENT FOR THE ICCS CON-
TRACT IS MADE CURRENT AS OF 30 SEPTEMBER 1974 OR UNLESS
AIR AMERICA RECEIVES AN ACCEPTABLE GUARANTEE FROM AN AUTHO-
RIZED U. S. GOVERNMENT CONTRACTING OFFICER THAT PAYMENT
FOR THESE SERVICES WILL BE FORTHCOMING IN THE EVENT ICCS
DOES NOT MEET ITS PAYMENTS DIRECTLY. OUR REQUEST FOR THIS
GUARANTEE IS NOT LIMITED TO PAYMENTS CURRENTLY IN ARREARS,
BUT EXTENDS TO SERVICES THAT WILL BE PERFORMED FOR THE RE-
MAINING CONTRACT PERIOD.
IN OUR PREVIOUS DISCUSSIONS ON THIS SUBJECT, YOU HAVE IN-
DICATED THAT CONTINUING FLYING SERVICES FOR THE ICCS IS
IN THE POLICY INTEREST OF THE U. S. GOVERNMENT. I HAVE
CONVEYED THIS FACT TO THE BOARD OF DIRECTORS WHO HAVE EX-
PRESSED AN APPRECIATION OF THIS FACTOR BUT THEY HAVE MADE
IT CLEAR THAT IT IS OUR CORPORATE POLICY OF INSURING THAT
WE CONDUCT OUR CONTRACTUAL ACTIVITIES ON A BUSINESSLIKE
BASIS. THE BOARD OF DIRECTORS HAVE INSTRUCTED ME THAT
UNDER NO CIRCUMSTANCES CAN CORPORATE FUNDS BE UTILIZED TO
SUPPORT THE ICCS.
I HAVE PREVIOUSLY ADVISED THAT WE WOULD INFORM YOU PRIOR
TO ANY DECISION TO TERMINATE FLYING SERVICES FOR THE ICCS.
I REGRET THAT I NOW HAVE TO ADVISE YOU THAT I WILL SEND A
TELEGRAM ON FRIDAY, 20 SEPTEMBER 1974, TO MY VICE PRESI-
DENT FOR VIETNAM OPERATIONS, MR. VAR M. GREEN, THAT HE IS
TO PROMPTLY NOTIFY THE ICCS THAT AIR AMERICA WILL TERMI-
NATE FLYING AND OTHER SERVICES AT THE CLOSE OF BUSINESS ON
30 SEPTEMBER 1974 UNLESS PAYMENT FOR PAST SERVICES IS RE-
CEIVED FROM THE ICCS PRIOR TO THAT TIME.
IT WILL BE NECESSARY, OF COURSE, THAT PREPARATIONS FOR
SUCH TERMINATION BE INITIATED BY OUR COMPANY IN VIETNAM
NOT LATER THAN WEDNESDAY, 25 SEPTEMBER 1974 SAIGON TIME.
FOR REASONS I FEEL SURE THAT YOU WILL UNDERSTAND IT WOULD
BE ADVISABLE THAT PAYMENT OR GUARANTEE ACTIONS PROPOSED
ABOVE BE TAKEN BEFORE THIS TIME, IF THE TRIGGERING OF A
PROBABLE AVALANCHE OF EVENTS IS TO BE PRECLUDED.
SINCERELY, (S) HUGH L.-GRUNDY, PRESIDENT
END TEXT. KISSINGER
>>>>>>>
September 1974 - ICCS FINANCES: AIR AMERICA NOTICE OF INTENT TO TERMINATE SERVICES
AT 1345 SAIGON TIME SEPT 24, LOCAL AIR AMERICA MANAGER GREEN
WILL DELIVER LETTER TO ICCS DIRECTOR GENERAL STATING INVOICES
PRESENTLY OVERDUE TOTAL $951,034 AND INVOICES WHICH WILL BE OVER-
DUE IF NOT PAID BY OCT 1 TOTAL $443,374. IF ICCS CANNOT PAY
$1,394,408 BY SEPT 30, "ALL FLYING AND ANCILLARY SERVICES WILL
BE TERMINATED EFFECTIVE CLOSE OF BUSINESS SEPT 30."
GREEN STATES ICCS DIRECTOR GENERAL ALREADY AWARE OF SUBSTANCE
OF LETTER. GREEN STATES IF ICCS OFFERS TO PAY ONLY $951,043, HE
BELIEVES HE CAN PERSUADE HIS HEADQUARTERS TO AGREE TO EXTEND
DEADLINE PENDING FULL PAYMENT. GREEN BELIEVES NEXT STEP WILL BE
DEMAND BY AIR AMERICA THAT ICCS ESTABLISH IMPRESSED ACCOUNT.
HE STATES SUBSTANCE OF LETTER COORDINATED IN WASHINGTON.
LEHMANN
>>>>>>>
September 1974 - ICCS FINANCES: AIR AMERICA NOTICE OF INTENT TO TERMINATE SERVICES
LOCAL AIR AMERICA MANAGER GREEN HELD NEGOTIATING SESSION
WITH ICCS DIRECTOR GENERAL KHAZENI SEPT 26. GREEN PRESENTED AIR
AMERICA DEMAND FOR PAYMENT BY SEPT 30 OF $951,034 FOR IVOICES
OVERDUE NOW, $474,858 FOR INVOICES FOR WHICH FIRM INFO AVAILABLE
THROUGH SEPT 30, AND $650,831 FOR INVOICES BASED ON ESTIMATES,
TOTALLING $2,076,723. LATTER CATEGORY INCLUDES ESTIMATE CHARGES
FOR U.S. ARMY FOR UH-IH PARTS RECEIVED BUT NOT INVOICED
($222,025), REQUISITIONED TO REPLACE PARTS CONSUMED ($153,050),
PROJECTED COSTS FOR PARTS TO BE CONSUMED DURING SEPT 1974
($54,000), AND CONTINGENT LIABILITY FOR TRANSPORTATION COSTS OF
FOREGOING NOT YET BILLED AT 20 PERCENT OF COST ($182,478).
KHAZENI UNDERTOOK TO PAY FIRST TWO CATEGORIES, $951,034 AND
$474,858, BEFORE SEPT 30. HE ALSO UNDERTOOK TO PAY $650,831
SOONEST BUT NOTED IT WOULD TAKE ABOUT TEN DAYS OR UNTIL OCT 7
TO PROCESS THESE INVOICES.
GREEN UNDERTOOK TO REFER THE ICCS PROPOSAL ON THE $650,831
TO HIS PRINCIPALS IN WASHINGTON AND STATED HE NOT EMPOWERED TO
WITHDRAW NOTICE TO TERMINATE SEPT 30 UNLESS THESE PRINCIPALS
APPROVE.
LEHMANN
>>>>>>>
By Lynda Carson
Air America, run by Paul C. Velte Jr., and owned by the CIA, was trafficking in drugs in Thailand, Laos, Cambodia, and Vietnam, during it's existence.
An interesting film called Air America with Robert Downey Jr, and Mel Gibson came out a number of years ago about Air America's notorious narcotic trafficking days.
See some information below...
-Lynda Carson
>>>>>>>
Air America was used by the US government and the military to transport illegal drugs, and other items.
Wikipedia - Air America
Air America was an American passenger and cargo airline established, under a different name, in 1946 and covertly owned and operated by the Central Intelligence Agency (CIA) from 1950 to 1976, adopting the Air America name in 1959. It supplied and supported covert operations in Southeast Asia during the Vietnam War, including allegedly providing support for drug smuggling in Laos. Its slogan was "Anything, Anywhere, Anytime, Professionally".
https://en.wikipedia.org/wiki/Air_America_(airline)
>>>>>>>
https://en.wikipedia.org/wiki/The_Politics_of_Heroin_in_Southeast_Asia
Air America, covertly owned and operated by the CIA, was allegedly used to transport the illicit drugs. The CIA reacted strongly to the book: "...high-ranking officials of the C.I.A have signed letters for publication to a newspaper and a magazine, granted a rare on-the-record interview at the agency's headquarters in McLean, Va." The C.I.A letters were to the Washington Star and were signed by William E. Colby and Paul C. Velte Jr. "a Washington-based official with Air America, a charter airline that flies missions for the CIA in Southeast Asia.
Sep 11, 2025 · Paul C. Velte Jr., was CEO of Air America, a large airline that was secretly owned by the Central Intelligence Agency and used for a variety of missions in Southeast Asia.
http://www.naturegeezer.com/2018/08/p.html
[WASHINGTON DATELINE APRIL 27 EVENING PRESS ACCOUNTS OF
RELEASE OF SENATE SPECIAL COMMITTEE REPORT ON INTELLIGENCE
ACTIVITIES TENDED TO FOCUS ON CIA BACKING OF AIR AMERICA,
CIVIL AIR TRANSPORT, SOUTHERN AIR TRANSPORT, ETC., AND USE
BY AIR AMERICA AND SAT OF TACHIKAWA AIR BASE IN THE 1960S.
AS A BASE FOR SPECIAL OPERATIONS. ACCOUNTS ALSO REFERRED TO
OPERATION "DERBY HAT" WHICH SENATE REPORT STATES WAS
CONDUCTED IN FAR EAST AND SPECULATES WHETHER IT MIGHT NOT
BE RALATED TO PREVIOUSLY ALLEGED CIA EXPERIMENTATION WITH
LSD ON HUMANS AT ATSUGI NAS (TOKYO 4979). (TOKYO TEXT OF
YOMIURI ACCOUNT IS CARRIED BY FBIS.)]
I was able to dig up a few reports about the notorious Air America and it's activities below, before it folded, and dissolved.
-Lynda Carson
February 1974 - AIR AMERICA
AIR AMERICA CONTINUES TO SURFACE AS SUBJECT OF CRITICISM
OF AMERICAN PRESENCE IN THAILAND. REPUTATION AS A "CIA TOOL"
HAS RESULTED IN PUBLIC LINKING OF AIR AMERICA TO RECENT CIA
LETTER INCIDENT. IN UDORN, JANUARY STRIKE OF AIR AMERICA
WORKERS, ALTHOUGH SETTLED SATISFACTORILY, ATTRACTED COMMUNITY
ATTENTION TO ALLEGATIONS OF IRREGULARITY IN AIR AMERICA
OPERATIONS.
STUDENT GROUPS HAVE BEEN PURSUING THEIR OWN INVESTIGATIONS
OF AIR AMERICA. ACCORDING TO RTG SUPREME COMMAND SOURCES,
STUDENTS HAVE EXPRESSED DOUBT THAT RTG EXERCISES EFFECTIVE
CONTROL OVER AIR AMERICA. THEY ALLEGE THAT CIA IS USING AIR
AMERICA TO SMUGGLE ARMS AND NARCOTICS INTO THAILAND, WITH IN-
TENTION OF SUBVERTING RTG. THEY ALSO CLAIM THAT AIR AMERICA
HAS RESISTED EFFORTS BY THAI CUSTOMS AND IMMIGRATION TO
EXERCISE NORMAL CONTROLS AT PORTS OF ENTRY. PRESS HAS ALSO
PUBLICIZED CLAIM FROM DEPARTMENT OF CIVIL AVIATION THAT
AIR AMERICA OPERATIONS WERE NEVER PROPERLY AUTHORIZED BY RTG.
GENERAL KRIANGSAK OF SUPREME COMMAND HAS STRESSED RTG
CONCERN THAT CRITICISM WILL GET OUT OF CONTROL UNLESS
SATISFACTORY REPLIES CAN BE GIVEN TO PRESS, PUBLIC AND STUDENT
CRITICS. WE HAVE PROVIDED UNCLASSIFIED BACKGROUND BRIEFING
PAPER AND OFFERED TO PROVIDE FURTHER INFORMATION AS REQUIRED;
TO DATE PRESSURE ON RTG BANGKOK AGENCIES HAS FORTUNATELY
NOT ESCALATED, AND ISSUE HAS NOT YET BEEN TAKEN UP IN
PARLIAMENT.
LAST MONTH, FORSEEING INCREASING INTEREST IN AIR AMERICA
AS PRESSURE POINT AGAINST UNITED STATES ACTIVITIES IN
SOUTHEAST ASIA, AMBASSADOR ESTABLISHED INTER-AGENCY TASK
FORCE, WHICH IS WORKING CLOSELY WITH VIENTIANE TO DEVELOP
RECOMMENDATIONS FOR CONTINUING ESSENTIAL CONTRACTOR SERVICES,
NOW PROVIDED BY AIR AMERICA FROM BASES IN THAILAND, BEYOND
FY 74. WE EXPECT TO FORWARD COORDINATED RECOMMENDATIONS FOR
WASHINGTON CONSIDERATION WHORTLY.
KINTNER
>>>>>>>
August 1973 - NARCOTICS: AIR AMERICA
AIR AMERICAN CONTRACT FOR VIETNAM CONTAINS NO REFERENCE TO
NARCOTICS INSPECTION OF AIR AMERICA PASSENGERS.
HOWEVER, A PROGRAM OF INSPECTION WAS INSTITUTED 21 FEB 73.
INSPECTION APPLIED ONLY TO AIR AMERICA AT SAIGON AND AT THE
FOUR REGIONAL CAPITALS. ALL OTHER INTERNAL AND INTERNATIONAL
TRANSPORT WAS NOT CONTROLLED. INSPECTION WAS CARRIED OUT BY
AIR AMERICA EMPLOYEES WITHOUT AUTHORITY TO CARRY OUT POLICE
FUNCTIONS UNDER GVN LAW, BUT VIETNAMESE POLICE WERE PRESENT TO MAKE ARRESTS
IF NECESSARY. NO NARCOTICS WERE FOUND. MEMBERS OF THE MISSION
WHO TRAVEL MOST DOUBTED THAT THE CONTROLS WERE EFFECTIVE. THEY
WERE A MINOR NUISANCE TO TRAVELERS AND TO AIR OPERATIONS, AND
IN SOME CASES AN EMBARRASSMENT, AS WHEN AN EFFORT WAS MADE TO
SEARCH A FOREIGN MILITARY ATTACHE ON AN INTERNAL FLIGHT, OR WHEN
VIETNAMESE OFFICIALS WERE SUBJECTED TO AMERICAN SEARCH.
AIR AMERICA SERVICE IS ESSENTIAL TO THE MISSION BUT THE
GVN IS SENSITIVE TO IT AS A RIVAL TO AIR VIETNAM AND OTHER
PUBLIC TRANSPORT. THERE WAS SOME CONCERN THAT THE POSSIBLE AFFRONT
TO GVN SOVEREIGNTY IN THE CONTROL SYSTEM WOULD FOCUS THIS
OPPOSITION. THE NATIONAL DIRECTOR OF THE VIETNAMESE POLICE HAS SAID
HE WOULD CONTINUE TO COOPERATE WITH THE PROGRAM. HOWEVER, IT IS
HIS EMPHATIC VIEW THAT WITH MANY FORMS OF INTERNAL TRANSPORTATION
AVAILABLE, UNLIKE THE SITUATION IN LAOS, THE CONTROLS ARE
USELESS HERE. IN THE CIRCUMSTANCES, THE CHARGE D'AFFAIRES SUSPENDED
THE CONTROLS JUNE 30, 73, AND THE MISSION DOES NOT AT THIS TIME
INTEND TO REINSTATE THEM, BUT WILL KEEP THE SITUATION UNDER
CLOSE REVIEW.
MARTIN
>>>>>>>
January 1974 - STRIKE AT AIR AMERICA AND OTHER DISTURBANCES
SUMMARY: THAI EMPLOYEES AT AIR AMERICA LAUNCHED STRIKE
JANUARY 14 TO SEEK HIGHER WAGES AND MORE FRINGE BENEFITS. AIR
AMERICA SCHOOL CLOSED UNTIL FURTHER NOTICE. ABOUT 250 WORKERS
DEMONSTRATED WITH SIGNS WHICH READ "AMERICANS AND CIA GO HOME."
AND STOPPED AA BUSSES TO FORCE WILLING AND UNWILLING AA EMPLOYEES
TO GET OFF. THOUGH WORKER PROTESTS CONTINUE, AA OPERATIONS HAVE
NOT BEEN INTERRUPTED. PLANEL DISCUSSIONS AT UDORN TEACHERS
COLLEGE JANUARY 12, WHICH INCLUDED THREE CONSTITUTION THIRTEEN
ARRESTEES ASSERTED THAT THAILAND AS WELL AS ALL OF SOUTHEAST ASIA
IS TARGET FOR CIA OPERATIONS. PANELISTS SUGGESTED AMERICAN GIS
SHOULD BE REMOVED FROM THAILAND BASES DESPITE ECONOMIC CONSEQUENCES
TO THAILAND.
STUDENTS BOYCOTTED CLASSES AT UTC JANUARY 14 AND STAGED
DEMONSTRATION IN FRONT OF THE CONSULATE (REPORTED SEPTEL). DISTRICT
POLICE CHIEF WARNED OF POSSIBLE VIOLENCE AGAINST AMERICANS IN TOWN
WHICH WE PASSED TO BASE AND AMASUN. USAF RESTRICTED PERSONNEL TO
BASE OAT 1300 AS DID RAMASUN COMMANDER DURING AFTERNOON.
END SUMMARY.
STRIKE BEGAN AT AIR AMERICA (AA) MORNING JANUARY 14 TO
DRAMATIZE NEED FOR HIGHER WAGES AND INCREASED PRINCE BENEFITS.
ABOUT 250 WORKERS ASSEMBLED ALONG HIGHWAY TO AIR AMERICA CARRYING
SIGNS WHICH READ "AMERICANS, CIA GO HOME." WORKERS STOPPED AIR
AMERICA BUSES AND PULLED OFF THAI AND NON-THAI EMPLOYEES IN
HOPES THEY WILL JOIN STRIKE AND CRIPPLE AA OPERATIONS.
WORKER-DEMONSTRATIORS FIRST LOCATED IN FRONT OF UDORN TEACHERS'
COLLEGE (UTC) AT 700 HOURS, BUT LATER MARCHED TO PROVINCIAL OFFICE
WITH PLANS TO DEMONSTRATE AT AIR AMERICA LATER TODAY AND PLACE
WREATH AT AA GATE.
MEANWHILE, ACCORDING TO MANAGEMENT, SINCE AMERICANS BEING
USED IN SOME MAINTENANCE SLOTS VACATED BY STRIKING THAI EMPLOYEES,
AIR AMERICA OPERATIONS NOT DISRUPTED.
STUDENTS JANUARY 14 BOYCOTTED CLASSES AT UTC. INSTEAD THEY
GATHERED AT UTC AUDITORIUM TO LISTEN TO ANTI-U.S. AND ANTI-CIA
SPEECHES. SEVERAL OF THE SPEAKERS ARE FORMER JLD (CIA OPERATIONS,
LAOS) EMPLOYEES WHO ARE THAI NATIONALS.
CITY POLICE CHIEF SOMKIAT PHUANGSAP DURING VISIT TO CONSULATE
JANUARY 14 ALERTED US THAT STUDENTS PLANNED TO DEMONSTRATE IN
FRONT OF THE CONSULATE. DEMONSTRATORS LAID WREATH ATTACKING CIA
AT CONSULATE GATE (REPORTED SEPTEL.
PEACE CORPS VOLUNTEER AT UTC JANUARY 13 TOLD CON OFF VOLUNTEERS
HAD HEARD AND COUNTERED STUDENT ACCUSATIONS THAT THEY ARE CIA
AGENTS. (SEE REFTEL). SO FAR NO UNPLEASANT OR IMPROPER CONDUCT
TOWARD THEM. PCVS, HOWEVER, SAID THEY WOULD BE COMPROMISED IF
SEEN BY ANY STUDENTS TALKING TO OR VISITING CON OFF.
UTC STUDENTS WHO ORIGINALLY PLANNED THIS AFTERNOON TO LAY
WREATH PROTESTING AGAINST CIA AT USAF TENANTED BASE REPORTEDLY
DISBERSED INSTEAD AFTER MEETING PROVINCIAL GOVEROR. GOVERNOR
SPOKE TO THEM AFTER THEY LEFT CONSULATE (UDORN 13). GOVERNOR
SAID HE WOULD PASS ON TO BANGKOK FIRST FIVE OF SIX DEMANDS THEY
PRESENTED HIM, AS WELL AS CONSULATE, AND WOULD DISCUSS SIXTH
DEMAND (ON RESTRICTING U.S. MILITARY ACCESS INTO TOWN) WITH U.S.
MILITARY COMMANDERS AND CONSULATE. BROH-KAHN. GDS.
>>>>>>>
January 1974 - AIR AMERICA STRIKE AT UDORN
STRIKERS AT UDORN ROYAL THAI AIR FORCE BASE BEAT UP A COUPLE
OF AMERICAN MECHANICS THE MORNING OF JANUARY 16. THE STRIKERS
HAVE INTIMIDATED AIR AMERICA GUARDS AND NO GUARDS WERE ON HAND
EARLY IN THE DAY. THE CONSUL IN UDORN HAS DISCUSSED THE SITUATION
WITH THE PROVINCE POLICE CHIEF WHO HAS AGREED TO PROVIDE POLICE
GUARDS AROUND THE AIR AMERICA INSTALLATION.
UDORN WILL BE REPORTING BY IMMEDIATE TELEGRAM TO THE DEPART-
MENT ABOUT THESE EVENTS AS THEY UNFOLD. WHILE THE STRIKE HAS SO
FAR GONE ALMOST UNNOTICED IN BANGKOK, WE WOULD HOPE, IN THE WAKE
OF THE SAKON NAKHON LETTER INCIDENT, TO AVOID ANY FURTHER CAUSE
CELEBRE THAT COULD EXACERBATE THAI-U.S. RELATIONS. WE THEREFORE
REQUEST THAT THE DEPARTMENT APPRISE AIR AMERICA OF OUR CONCERN.
IT WOULD ALSO HELP TO URGE FLEXIBILITY ON THE PART OF AIR AMERICA
NEGOTIATORS IN UDORN, AS WELL AS IN THE TERMS AIR AMERICA OFFERS
THE STRIKERS.
KINTNER
>>>>>>>
April 1974 - AIR AMERICA
SUMMARY: SINCE MEETING BETWEEN AMBASSADOR AND MINISTER OF
DEFENSE, AIR CHIEF MARSHAL DAWEE (REF A), AIR AMERICA
DIRECTOR VELTE AND COMPANY REPRESENTATIVES HAVE MET WITH
AIR MARSHAL SOONTORN, DIRECTOR OF THAI/AM, ON TWO SEPAR-
ATE OCCASIONS. AS A RESULT OF THESE MEETINGS, IT IS
APPARENT THAT THE THAIS ARE IN NO HURRY TO TAKE OVER THE AIR
AMERICA UDORN OPERATION BY 30 JUNE. WE ARE THEREFORE RAPIDLY
APPROACHING AN IMPASSE THAT IN ALL PROBABILITY WILL NOT ALLOW
SUFFICIENT TIME TO MEET AIR AMERICA'S DESIRE TO TERMINATE OP-
ERATIONS AT THE END OF THE CURRENT CONTRACT PERIOD. ONLY WAY
WE CAN SEE TO GET THAI MOVING IS TO OFFER TO TURN OVER ES-
SENTIAL GFE TO THEM. MR. VELTE, WHO IS NOW ENROUTE TO WASHING-
TON, SHARES THIS VIEW AND WILL BE AVAILABLE FOR STATE/DOD
CONSULTATIONS. WE URGE FULL DISCUSSIONS WITH HIM TO AMPLIFY
THE PROBLEM AREAS DISCUSSED IN THIS MESSAGE. END SUMMARY.
WE UNDERSTAND THAT IN EARLY 1972 WASHINGTON LEVEL PLANNING
COMMENCED TO DISPOSE OF CERTAIN UNIQUE AIR PROPERTIES INCLUDING
AIR AMERICA. APPROXIMATELY A YEAR LATER A FIRM DECISION WAS MADE
TO DISPOSE OF AIR AMERICA AND STATE/DOD/AID WERE SO NOTIFIED.
LATER IN 1973 AIR AMERICA WAS PUT UP FOR SALE BUT A DECI-
SION WAS MADE THAT THE BIDS RECEIVED WERE TOO LOW. MEANWHILE,
AFTER OCTOBER 1973, AIR AMERICA OPERATIONS IN THAILAND HAD
BECOME A SOURCE OF IRRITATION IN THAI-U.S. RELATIONS. IN EARLY
1974 IN PARTIAL RESPONSE TO A MISSION RECOMMENDATION, A DECIS-
ION WAS MADE TO CLOSE OUT AIR AMERICA OPERATIONS IN THAILAND,
ALTHOUGH CERTAIN OTHER AIR PROPERTIES ARE STILL UP FOR POSSIBLE
DISPOSITION BY SALE. SUBSEQUENTLY, WE DID NOT RECEIVE SUFFI-
CIENT GUIDANCE TO APPROACH THE RTG UNTIL THE MEETING ON 1 APRIL
(REF A), OR APPROXIMATELY TWO YEARS AFTER INITIAL PLANNING
WAS BEGUN TO DISPOSE OF AIR AMERICA. WE CAN THEREFORE SYMPATHIZE
WITH THE RTG VIEW THAT THEY ARE NOT GOING TO BE RUSHED
INTO ASSUMING A CONTRACT THAT, FIRST IS SMALL (REF B);
AND, SECOND, OF UNCERTAIN DURATION, IN PART DEPENDENT ON
THE POLITICAL SITUATION IN LAOS AND THE ABILITY OF THE
RLAF TO ATTAIN SELF-SUFFICIENCY.
WITH THE INTERNAL POLITICAL PROBLEMS CURRENTLY FACING
THE RTG, THEY HAVE MADE IT CRYSTAL CLEAR TO AIR AMERICA
NEGOTIATORS THAT THE ASSUMPTION OF THE UDORN CONTRACT
IS WAY DOWN ON THEIR LIST OF PRIORITIES. THEY HAVE
RECOGNIZED THE DISCREPANCY IN PAY RATES BETWEEN THAI/AM
SALARIES IN BANGKOK AND THE HIGHER RATES PAID BY AIR
AMERICA IN THAILAND AS A REAL PRACTICAL PROBLEM AND
VOICED CONCERN OVER WHAT THEY WILL ULTIMATELY DO WITH THE
THAI EMPLOYEES WHOM THEY WOULD INHERIT AS PART OF THE
POSSIBLE CONTRACT. FINALLY, IT IS CLEAR THEY CONSIDER IT
POLITICALLY UNACCEPTABLE TO CONTINUE TO EMPLOY THIRD-COUNTRY
NATIONALS AND THAT ONLY A FEW AMERICAN MANAGEMENT PERSONNEL
WOULD BE ALLOWED TO STAY, AND THOSE ONLY ON A YEARLY CONTRACT
BASIS. WITHOUT THIS BACKBONE OF ESSENTIAL PERSONNEL, WE
ARE DOUBTFUL THAT A THAI INSTRUMENTALITY COULD PRODUCE AD-
EQUTE MAINTENANCE. HOWEVER, THE TIME CONSUMING PROCESS OF
TURNING OVER NECESSARY GFE TO THE THAI MIGHT BE USED AS LEVERAGE
TO MAINTAIN THIS NECESSARY BACKBONE STRUCTURE FOR SOME
TIME TO COME.
IN REVIEWING THE GFE LIST PROVIDED MACTHAI, WE NOTE
THAT OF THE $7.2 MILLION INVOLVED, $5.9 MILLION WAS
PURCHASED WITH FUNDS EARMARKED FOR LAOTIAN SUPPORT. OF
THIS AMOUNT APPROXIMATELY $4.7 MILLION IS IN FIXED PROPERTY
AND UTILITY DISTRIBUTION SYSTEMS THAT WOULD, PER PRIOR
AGREEMENT, REVERT TO THE RTG ANYWAY AT SUCH TIME AS THE US
HAS NO FURTHER REQUIREMENT FOR THE FACILITIES. THE REMAINING
$1.2 MILLION OF LAOS FUNDED MATERIAL IS ASSUMED TO BE ON DEP-
CHIEF'S BOOKS AND DISPOSITION WOULD HAVE TO BE WORKED OUT BY
THEM. AIR FORCE-OWNED GFE EQUIPMENT RUNS TO ABOUT AN ADDI-
TIONAL $1.3 MILLION, MUCH OF WHICH WE ASSUME COULD NOT BE
ECONOMICALLY RETROGRADED FOR USE ELSEWHERE. FOR EXAMPLE,
SUCH ITEMS AS 4 BICYCLES PURCHASED IN 1961 AT A TOTAL
ACQUSITION COST OF $170 WOULD NOT APPEAR TO BE LIKELY
CANDIDATES FOR RETROGRADE. IN SUM, IT WILL TAKE SOME TIME TO
EVALUATE WHAT IS ON HAND, TO EVALUATE LAOS REQUIREMENTS, AND
FINALLY TO NEGOTIATE THE TURN OVER OF REMAINING NECESSARY GFE
TO THE THAI. WE SHOULD BE FORTHCOMING I
E E E E E E E E
>>>>>>>
July 1974 - CLOSE OUT OF AIR AMERICA OPERATIONS IN THAILAND
AIR AMERICA SPOKESMAN IN BANGKOK TOLD THE PRESS JULY 1
THAT AIR AMERICA IN THAILAND HAD "CLOSED UP SHOP," WITH THE
EXCEPTION OF A SMALL ADMINISTRATIVE OFFICE TO COMPLETE FINAL
DETAILS, ACCORDING TO BANGKOK POST.
MR. PAUL VELTE, MANAGING DIRECTOR FROM AIR AMERICA HEAD-
QUARTERS IN WASHINGTON CALLED ON THE AMBASSADOR JULY 2 TO
CONFIRM SUCCESSFUL TRANSITION OF UDORN MAINTENANCE FACILITY
FROM AIR AMERICA TO THAI AM, EFFECTIVE MIDNIGHT JUNE 30.
THAI EMPLOYEES WERE GIVEN FULL SEPARATION PAYMENTS BY CHECK
JUNE 30, INCLUDING INCREASED SEVERANCE PAY IN ACCORDANCE WITH
RTG JUNE 14 AMENDMENTS TO LABOR LAW IN SETTLEMENT OF RECENT
TEXTILE STRIKE. THAI AM PLANS TO TAKE FOUR-DAY BREAK JULY 4-7
TO CATCH ITS BREATH, BUT VELTE EXPECTS OPERATION TO RESUME
JULY 8 WITHOUT ANY OBVIOUS HITCHES.
AS OF TODAY, 71 AMERICAN EMPLOYEES AND THIRD COUNTRY
NATIONALS (TCNS) REMAIN ON AIR AMERICA PAYROLL IN UDORN
TO EASE THE TRANSITION. VELTE EXPECTS HALF OF THESE TO
LEAVE BY AUGUST 1 AND BULK OF REMAINDER IN EARLY
AUGUST. LAST AIR AMERICA EMPLOYEES ATTACHED TO BANGKOK
OFFICE SCHEDULED TO LEAVE NO LATER THAN SEPTEMBER 28.
TO DATE ONLY A FEW US EMPLOYEES HAVE ACCEPTED THAI AM
TERMS, BUT NEGOTIATIONS WITH INDIVIDUALS ARE APPARENTLY
CONTINUING. THIS AM IS CLEARLY RELUCTANT TO HIRE TCNS
AND IS CONTINUING TO SEARCH FOR QUALIFIED THAI CITIZENS
AT THE SAME TIME THAT THEY ARE MAKING TENTATIVE OFFERS
TO AIR AMERICA TCNS. AS FOR THAI EMPLOYEES, VELTE
OPINED THAT THAI AM BANGKOK SALARY SCHEDULES NOW INSTRODUCED
AT UDORN ARE ADEQUATELY COMPARABLE TO AIR AMERICA WAGES
SO THAT ADJUSTMENT WILL NOT CAUSE LABOR PROBLEMS.
WORKLOAD AT TIME OF TRANSITION WAS VERY LOW, APPARENTLY
BECAUSE OF CONSCIOUS WITHHOLDING OF DEFERABLE MAINTENANCE
AND REPAIR JOBS PRIOR TO TRANSFER OF FACILITY. VELTE URGED
PROMPT ACTION BE TAKEN TO CONFIRM MAINTENANCE REQUIREMENTS
UNDER FY75 CONTRACT TO PROVIDE THAI AM WITH ESSENTIAL BASIS
FOR FORWARD PLANNING.
AMBASSADOR CONGRATULATED VELTE ON SUCCESSFUL CONCLUSION
OF TURNOVER ARRANGEMENTS, RECALLING SERIOUS CONCERN TWO
MONTHS AGO THAT DEADLINE COULD NOT BE MET. EMBASSY
CONSIDERS VELTE DESERVES GREAT CREDIT FOR ACCOMPLISHING
THIS TASK IN INTEREST OF USG WHILE AVOIDING NUMEROUS
PITFALLS INHERENT IN SITUATION.
KINTNER
>>>>>>>
March 24, 1973 report called, BAILMENT OF UH-1 H AIRCRAFT TO AIR AMERICA FOR ICCS USE
WE REVIEWED THE COST OF THE BAILMENT TO AIR AMERICA
WITH DEPARTMENT OF DEFENSE. DOD IS WILLING TO WAIVE COST
OF HULL INSURANCE ESTIMATED AT 691,000 DOLS PER ANNUM.
HOWEVER, IF ANY OF THE AIRCRAFT SHOULD BE DAMAGED OR
DESTROYED, USG WOULD RESERVE RIGHT TO FILE AN APPROPRIATE
CLAIM AGAINST THE ICCS. FURTHER, IF AMBASSADOR BELIEVES
IT IS NECESSARY TO DO SO, DOD IS ALSO WILLING TO WAIVE COST
OF AMORTIZATION, ESTIMATED AT 337,000 DOLS PER ANNUM.
COST OF OVERHAULING, ESTIMATED AT 572,000 DOLS PER
ANNUM, CANNOT BE WAIVED. REGULAR OVERHAULING IS OBVIOUSLY
ESSENTIAL FOR EFFICIENT AND SAFE OPERATION OF AIRCRAFT AND
AMOUNT STATED IS OUT- OF- POCKET COST TO US ARMY.
THE FOREGOING PROVIDES ICCS WITH RELIEF FROM APPROXI-
MATELY ONE MILLION DOLS OF BAILMENT COSTS, WHICH WE BELIEVE
IS MAXIMUM POSSIBLE. YOU AUTHORIZED CONVEY THIS INFORMA-
TION TO ICCS. APPRECIATE REPORT ON THEIR REACTION.
DAO BEING SIMILARLY INFORMED THROUGH MILITARY CHANNELS.
ROGERS
>>>>>>>
BAILMENT OF UH-1 H AIRCRAFT TO AIR AMERICA FOR ICCS USE
LETTER FROM AMBASSADOR DELIVERED MARCH 28 INFORMED ICCS
OF BAILMENT SAVINGS REFTEL, INCLUDING WAIVER OF AMORTIZATION
COSTS FOR THE AIRCRAFT. BASED ON OUR ORAL ASSURANCE OF
SUBSTANTIAL REDUCTION OF COSTS ON THE BAILMENT TERMS, ICCS
AMBASSADORS AT URGENTLY CONVENED SUNDAY SESSION MARCH 25
AUTHORIZED AIR AMERICA TO ENTER INTO BAILMENT AGREEMENT,
AND THIS WAS DONE NEXT DAY. AT NO TIME DID ICCS LACK
HELICOPTER SUPPORT.
AMBASSADOR' S LETTER CIRCULATED ALL ICCS DELEGATIONS
MARCH 28, AND CANDEL INFORMS US, WILL BE AGENDA TOPIC AT
MARCH 30 PLENARY SESSION.
EMBASSY GRATEFUL FOR PROMPT AND HELPFUL RESPONSE.
BUNKER
>>>>>>>
April 1973 - AMERICAN KILLED IN ICCS HELICOPTER LOSS
AIR AMERICA SAIGON TELLS US THAT THEY NOTIFIED AIR AMERICA
WASHINGTON OFFICE ON APRIL 8 NAMES OF NEXT OF KIN OF TWO DECEASED
AMERICANS WHO DIED IN APRIL 7 ICCS HELICOPTER LOSS, CHARLES
LEROY OSTERMAN AND TERRY DEAN CLARK. AIR AMERICA' S ESTA-
BLISHED PROCEDURE IS FOR NEXT OF KIN TO BE NOTIFIED BY AIR AMERICA
WASHINGTON OFFICE, WHICH WE ASSUME HAS BEEN DONE.
NAMES AND ADDRESSES OF NEXT OF KIN FOLLOW:
J. H. OSTERMAN ( BROTHER)
16545 APPLE STREET
FOUNTAIN VALLEY, CALIFORNIA 92708
( TELEPHONE 839-5911)
GABRIELE CLARK ( WIFE)
38867 OCOTILLO DRIVE
PALMDALE, CALIFORNIA
( TELEPHONE 805-273-0960)
AS REPORTED IN PARAS 1 AND 2 ( C) OF REF A, MAJOR GENERAL
HOANG ANH TUAN, ACTING CHIEF OF PRG DELEGATION TO FPJMC,
EXPRESSED TO CHIEF OF US DEL, FPJMT- MIA, HIS CONDOLENCES ON
DEATH OF AMERICAN CREW MEMBERS OF ICCS HELICOPTER WITH RE-
QUEST THAT U. S. AUTHORITIES " CONVEY THESE CONDOLENCES TO
FAMILIES OF PERSONNEL INVOLVED." DEPARTMENT MAY WISH TO CON-
SIDER FORWARDING THIS MESSAGE THROUGH AIR AMERICA WASHINGTON
OFFICE TO NEXT OF KIN.
ON OTHER HAND, VERSION OF EVENTS INVOLVING SHOOTING DOWN
OF ICCS HELICOPTER, AS EXPRESSED BY MG TUAN AND OTHER PRG
SPOKESMEN, APPEARS TO CONTAIN NUMEROUS MIS- STATEMENTS OF
FACT WHICH WILL QUICKLY BECOME APPARENT TO PUBLIC. WHOLE INCI-
DENT IS NOW BEING INVESTIGATED BY ICCS.
WE NOTE THAT DEPARTMENT SPOKESMAN ON APRIL 9 ( REF B) RE-
FERRED TO INCIDENT AS QTE TOTALLY CALLOUS FLOUTING OF PEACE
AGREEMENT BY COMMUNIST PARTIES TO THAT AGREEMENT END QTE,
WHILE MG MCALPINE, CHIEF OF CANADIAN MILITARY DELEGATION TO
ICCS, STATED IN SAIGON APRIL 9, IN REPLY TO QUESTION WHETHER
SHOOT- DOWN WAS ACCIDENT, QTE AN ACCIDENT* SURELY, WITH EVERY-
ONE IN THE AREA KNOWING THIS WAS AN APPROVED FLIGHT AND WITH THE
VERBATIM REPORTS OF THE SURVIVORS, I THINK OTHERWISE. END QTE.
WE RECOMMEND THAT THE DEPARTMENT SEND THE FAMILIES OF
OSTERMAN AND CLARK THE CONDOLENCES OF THE USG, MAKING NO MEN-
TION OF THE " CONDOLENCES" OF THE PRG, WHICH SEEM CLEARLY IN-
TENDED TO MASK PRG RESPONSIBILITY FOR SHOOTING DOWN THE ICCS
HELICOPTER. ALSO RECOMMEND THAT THE FAMILIES BE ASSURED THAT
THE TWO PILOTS DID THEIR UTMOST TO SAVE THE LIVES OF THEIR PAS-
SENGERS AND THAT, ACCORDING TO EYEWITNESS ACCOUNT, THE TRAGEDY
WAS
CAUSED BY COMMUNIST MISSILE FIRED IN VIOLATION OF CEASE- FIRE AND
IN VIOLATION OF PRG' S OWN ASSURANCES THAT THE FLIGHT WOULD BE UN-
MOLESTED.
WHITEHOUSE
>>>>>>>
April 1973 - ICCS HELICOPTER INCIDENT IN QUANG TRI APRIL 7: ICCS INVESTIGATION
POLOFF HUE REPORTS THAT REGION I ICCS INVESTIGATING
PANEL QUESTIONED THE PILOT OF AIR AMERICA HELICOPTER
#115, CAPT DEVOLL, FOR A TOTAL OF FIVE HOURS ON APRIL 16
IN HUE WITH AIR AMERICA REPRESENTATIVES AND POLOFF CARROL
PIESENT. A SET OF 20 QUESTIONS, PREPARED AND AGREED UPON
IN ADVANCE BY ALL FOUR DELEGATIONS, WAS PUT TO DEVOLL.
FOLLOWING WHICH EACH DELEGATION HAD THE OPPORTUNITY TO ASK
SUPPLEMENTARY QUESTIONS. THE THRUST OF THE CANDEL QUESTION-
ING WAS AIMED AT THE ISSUES OF (1) WHETHER THE AIRCRAFT
COULD HAVE BEEN MOVED, AND (2) WHETHER THE AREA OF THE
LANDING AND CRASH SITES WAS THE SAME AS THE AREA VISITED
BY THE ICCS INVESTIGATING TEAM ON APRIL 11. THE INDODEL
CONCENTRATED ON ELICITING THE REASONS WHY THE PILOT WAS
CERTAIN THE FLIGHT WAS ON COURSE, WHILE THE HUNGDEL LINE
OF QUESTIONING SOUGHT TO ESTABLISH THE CAUSE OF THE
CIASH. THE POLDEL, WHICH CHAIRED THE SESSION, MADE NO
SEPARATE INQUIRIES. THE HEARING WAS CONDUCTED IN A
CORDIAL ATMOSPHERE WITH ANY PRECONCEIVED THEORIES FAIRLY
WELL MASKED. DEVOCL APPEARED ENTIRELY FORTHCOMING AND
COOPERATIVE.
DEVOLL' S TESTIMONY GENERALLY FOLLOWED THE LINES OUTLINED
IN REF A WITH A MAJOR EXCEPTION THAT IT WAS MADE MUCH
CLEARER THAT HELICOPTER #115 WAS RELYING EXCLUSIVELY ON
FOLLOWING HELICOPTER #006 AND THE PRG LIAISON OFFICER
ACTING AS NAVIGATOR ABOARD THAT SHIP. IN A CONVERSATION
WITH POLOFF CARROL FOLLOWING HIS TESTIMONY, CAPT DEVOCL
CONCEDED THAT IT WAS POSSIBLE THAT THE PRG NAVIGATOR AND
THE PILOT OF HELICOPTER #006 COULD HAVE ERRED BY FOLLOWING
" ROAD 14" TO THE LEFT INSTEAD OF ROUTE 9 TO THE RIGHT
WITHOUT EITHER PILOT NOTICING THE ERROR. POLOFF COMMENTED
THAT DEVELL' S TESTIMONY GENERALLY TENDED TO LEND CREDENCE
TO THE THEORY THAT THE HELICOPTERS FOLLOWED " ROAD 14"
AFTER PASSING KHE SANH ( REFS B, C).
THE ICCS INVESTIGATING TEAM PLANS TO INTERVIEW THE OTHER
TWO CREW MEMBERS OF HELICOPTER #115 ON APRIL 17. IN
ADDITION, BEFORE THE INVESTIGATION IS CONCLUDED, THE
INVESTIGATING PANEL WILL QUESTION AT LEAST TWO OTHER
SURVIVORS OF THE INCIDENT AND THE PRG INTERPRETER " TWE"
WHO WAS ABOARD #115.
OUTLINE OF TESTIMONY WICL BE FORWARDED BY AIRGRAM.
>>>>>>>
April 1973 - CONTINENTAL AIR SERVICES
FOR NOOTER FROM WHITEHOUSE
CONTINENTAL AIR SERVICES REPRESENTATIVES VISITED ME LAST WEEK
TO COMPLAIN ABOUT RECENT DAO DECISION TO TERMINATE THEIR AIR
SUPPORT CONTRACT WITH DOD CONTRACTORS. THIS DECISION WAS TAKEN
BECAUSE OF VERY SUBSTANTIAL SAVINGS IN CONTRACT COSTS WHICH CAN BE
REALIZED FROM CONSOLIDATION OF MISSION AND CONTRACTOR AIR SUPPORT
IN SINGLE UMBRELLA CONTRACT. CONTINENTAL HAD NOSE OUT OF JOINT
BECAUSE THEY LEARNED OF DECISION ONLY INDIRECTLY FROM CONTRACTORS
WHO REPORTED THEY HAD BEEN INSTRUCTED TO FLY AIR AMERICA ONLY.
CONTINENTAL OFFICIALS CLAIMED THEY COULD BE COMPETITIVE WITH AIR
AMERICA IF GIVEN A CHANCE AND NOTED THATVVN HAS NEVER AUTHORIZED
AIR AMERICA TO HANDLE CONTRACTOR AIR SERVICES WHICH CONTINENTAL
AUTHORIZED TO DO ON BASIS LONG- STANDING JOINT VENTURE WITH AIR
VIETNAM. FINALLY, CONTINENTAL OFFICIALS INDICATED THEY WOULD RAISE
ISSUE IN WASHINGTON IF NECESSARY AND MADE IT CLEAR THEY WOULD TRY
TO MAKE AN ISSUE OF AIR AMERICA' S QUESTIONABLE STATUS AS PRIVATE
COMPANY IN CONTRAST TO THEIR SIMON- PURE STATUS.
SUBSEQUENT TO MEETING, I DISCUSSED ISSUE WITH DAO AND
AGREEMENT WAS REACHED TO EXTEND CONTINENTAL CONTRACT WITH
FEDERAL ELECTRIC THROUGH THE END OF JUNE AND CONTINENTAL HAS BEEN SO
INFORMED. MORE IMPORTANTLY, I BELIEVE THE QUESTION NEEDS TO BE
ADDRESSED OF WHETHER CONTRACT WITH AIR AMERICA SHOULD BE
RENEWED THROUGH FY 74, OR WHETHER BIDS SHOULD BE SOLICITED FOR
FY 74 AIR SERVICE REQUIREMENTS. SINCE AIR AMERICA CONTRACT HAS
BEEN EXTENDED THROUGH SEPTEMBER, THERE WOULD APPEAR TO BE
ADEQUATE
TIME IN WHICH TO REVIEW SITUATION CAREFULLY TO SEE IF CHANGED CON-
DITIONS HERE NOW PERMIT SOLICITING BIDS. EVEN IF IT IS UNLIKELY THAT
CONTINENTAL OR ANY OTHER COMPANY CAN COMPETE WITH AIR AMERICA IN
SUCH SOLICITATION IF NOTION OF CONSOLIDATING AIR SERVICES IS ADHERED
TO AS SEEMS FISCALLY PRUDENT, IT MAY NEVERTHELESS BE
DEFIRABLE TO ALLOW CONTINENTAL A COMPETITIVE CRACK AT THE CONTRACT.
WE REALIZE THAT THIS PROBLEM IS ONE WHICH WILL HAVE TO BE WORKED
OUT WITH THE OTHER INTERESTED AGENCIES AND DEPARTMENTS, BUT WE
WOULD BE INTERESTED TO RECEIVE YOUR INITIAL REACTION.
BUNKER
>>>>>>>
May 1973 - U. S. AERIAL RECONNAISSANCE AND ICCS FLIGHTS
PRIOR RECEIPT REFTEL WHITEHOUSE AND BG MAGLIONE, USAF,
MET WITH CANDELS GAUVIN AND SINGLETON. CANADIANS WERE
INFORMED THAT A U. S. DRONE HAD BEEN IN THE NORTHERN QUANG TRI
THE MORNING OF MAY 2. WE STRESSED THAT HELICOPTERS HAD
RECEIVED FIRE AT 1036 LOCAL WHEREAS ACCORDING TO 7 AF DRONE
HAD NOT PASSED THROUGH AREA UNTIL 1050. THIS USAF INFORMATION
APPEARED TO BE CONFIRMED BY UNIDENTIFIED OBSERVERS ON THE SCENE.
CANDELS WERE ASSURED THAT MEASURES WERE BEING TAKEN TO
OBTAIN FROM AIR AMERICA ICCS FLIGHT PLANS TO CONTESTED
OR ENEMY CONTROLLED AREAS ( XA MAT, AN LOC, DUC CO, BEN HET
AND NORTHERN QUANG TRI) IN ORDER TO AVOID REPETITION THIS
SITUATION.
DAO ( MAGLIONE) WILL ALSO DISCUSS THIS MATTER WITH VNAF AND
SEEK ASSURANCES THAT IT WILL TAKE SIMILAR PRECAUTIONS.
STATEMENTS MADE ON THIS SUBJECT AT PRG WEEKLY PRESS
CONFERENCE AT TAN SON NHUT FOLLOW SEPTEL. WE HAVE DECLINED
COMMENT ON DRONE IN RESPONSE SEVERAL PRESS QUERIES.
CANADIANS HOPE PRESS TREATMENT CAN BE MUTED SO THAT DRONE
ISSUE DOES NOT DIVERT ATTENTION FROM FACT PRG FIRED AT HELICOPTERS.
THEY RECALL THAT DISCUSSION OF LAO BAO INCIDENT BECAME CENTERED
ON WHEREABLUTS OF DOWNED CHOPPERS RATHER THAN ON SHOOTING
INCIDENT. WE SHARE THEIR VIEW THAT DRONE SHOULD NOT BECOME A
RED HERRING.
BUNKER
>>>>>>>
May 1973 - REPORT OF POSSIBLE U. S. CASUALTY - MISSING PORTER AIRCRAFT
ON MAY 8, SEARCH FOR MISSING CASI PORTER AIRCRAFT WAS
CONTINUED WITHOUT RESULTS. SEARCH INCLUDED PHOTO COVERAGE GIVING
PARTICULAR EMPHASIS TO AIRSTRIPS IN THE AREA. RESULTS OF PHOTO
COVERAGE ARE NOT YET AVAILABLE. SAR CONDUCTED GENERALLY NORTH
EAST
OF THE AREA WHERE MISSING AIRCRAFT WAS SCHEDULED TO OPERATE
BECAUSE OF STRONG SOUTHWEST WINDS REPORTED AT TIME MISSING
AIRCRAFT FIRST REPORTED DIFFICULTY. NINE AIRCRAFT, INCLUDING
FIXED WING AND HELICOPTERS, PROVIDED BY AIR AMERICA AND CASI,
PARTICIPATED IN SEARCH 8 MAY. IT IS PLANNED THAT ADDITIONAL
SEARCH WILL BE CONTINUED 9 MAY.
RREGARDING REFTEL B, WE DID NOT, OF COURSE, INTEND TO USE TERM
" VISUAL RECONNAISSANCE" IN ANY PUBLIC STATEMENT, WHICH
CASI MIGHT MAKE OR IN ANY CONTACT WITH LPF. IN CONNECTION WITH
LATTER, I DO NOT PLAN TO RAISE SUBJECT OF MISSING AIRCRAFT WITH
PHOUMI VONGVICHIT UNTIL WE HAVE EXHAUSTED OUR OWN MEANS OF
DETERMINING FATE OF AIRCRAFT AND CREW.
DEAN
>>>>>>>
May 1973 - ICCS AIR SERVICES
BEGIN SUMMARY: AS GVN HAS NOT BEEN FORTHCOMING TO DATE
IN ASSISTING ICCS WITH FACILITIES NEEDED IN CONNECTION AIR
SERVICES CONTRACT, AMBASSADOR WHITEHOUSE CALLED ON PRIME MINISTER
MAY 8 AND RAISED ISSUES WITH HIM. KHIEM SEEMED FAVORABLY
DISPOSED. DURING MAY 10 CALL ON FOREIGN MINISTER, HOWEVER,
ICCS CHAIRMAN AND SECRETARY GENERAL RAN INTO FAMILIAR ARGUMENT
THAT AIR VIET- NAM COULD HANDLE ICCS AIR SUPPORT. END SUMMARY
GVN HAS NOT BEEN FORTHCOMING IN MATTER OF ICCS AIR SERVICES
CONTRACT. THERE ARE THREE PRIMARY AREAS WHERE GVN SUPPORT IS
NEEDED. IN THE FIRST, GROUND SUPPORT FACILITIES, THE ICCS WOULD
LIKE WHERE POSSIBLE TO HAVE ITS CONTRACTOR, AIR AMERICA, SHARE
FACILITIES WITH THE GVN AT THE SEVEN ICCS REGIONAL LOCATIONS, IN
ORDER TO PROVIDE FASTER RESPONSE TO INVESTIGATORY REQUESTS, AND
TO SAVE POSITIONING AND DEPOSITIONING COSTS. IN A BELATED RESPONSE
TO AMBASSADOR GAUVIN' S FEBRUARY 28 LETTER REQUESTING THIS
COOPERATION, THE PRIME MINISTER' S OFFICE REPLIED ON APRIL 7,
CITING ARTICLE 7 OF THE 1944 CHICAGO CONVENTION, TO THE EFFECT
THAT " IT IS ADVISABLE FOR THE ICCS TO OFFER TO OUR NATIONAL AIRLINE
THE OPPORTUNITY TO FULFILL ITS LEGITIMATE DUTY". FURTHER MATTERS
AT ISSUE INCLUDE VISAS FOR 65 AIR AMERICA TCN CREW AND MAINTENANCE
PERSONNEL, AND IN ORDER TO REDUCE COSTS TO THE ICCS AND
EVENTUALLY TO THE PARIS AGREEMENT SIGNATORIES, THE PROVISION
OF INVITED CONTRACTOR STATUS FOR FOREIGN FIRMS WHICH ARE PERFORM-
ING SERVICES FOR THE ICCS.
ICCS HAS REPEATEDLY ATTEMPTED TO MEET WITH APPROPRIATE GVN
OFFICIALS IN ORDER TO OBTAIN ASSISTANCE AND TO GET ACROSS THE
POINT THAT IT IS SIMPLY NOT IN THE CARDS THAT AIR VIET- NAM WILL
BECOME RESPONSIBLE FOR ICCS AIR SERVICES. ( AIR VIET- NAM WAS A
BIDDER BEFORE THE CONTRACT WAS AWARDED TO AIR AMERICA. WE ARE
TOLD THAT IT S BID WAS HIGHER THAN AIR AMERICA' S, AND
INFER THAT IN ANY EVENT, THE ICCS WOULD NOT PERMIT ONE OF THE TWO
SOUTH VIETNAMESE PARTIES TO BE CHARGED WITH ICCS TRANSPORTATION.)
ON MAY 8, AMBASSADOR WHITEHOUSE CALLED ON PRIME MINISTER
AND RAISED THE MATTER WITH HIM. AMBASSADOR SAID THAT IT WAS
TOTALLY UNREALISTIC TO THINK THAT THE ICCS WOULD USE AIR VIET- NAM,
AND THAT REFUSING INVITED CONTRACTOR STATUS WOULD MERELY RAISE
BILLS WHICH WOULD BE PASSED ON TO THE PARIS SIGNATORIES. HE
POINTED OUT THAT CONSONANT WITH ITS RESPONSIBILITIES UNDERTAKEN
IN THE PARIS AGREEMENT, THAT IT WOULD BE APPROPRIATE FOR THE GVN
TO GRANT USE OF GROUND FACILITIES AT THE SEVEN REGIONAL ICCS
SITES. AMBASSADOR ASKED IN THIS REGARD THAT A HIGH- RANKING
OFFICER BE ASSIGNED TO ACCOMPANY ICCS AND AIR AMERICA
REPRESENTATIVESTO SURVEY THE GROUND FACILITIES IN QUESTION. KHIEM SEEMED
FAVORABLY DISPOSED TO THIS PRESENTATION.
ICCS CHAIRMAN WASILEWSKI AND SECRETARY GENERAL EFFENDI NUR,
IN CALL ON WHITEHOUSE MAY 10 ON ICCS BUDGETARY MATTERS ( SEPTEL),
SAID THAT THEY HAD RAISED ICCS AIR SERVICES QUESTIONS WITH FOREIGN
MINISTER LAM THAT MORNING. TO THEIR DISAPPOINTMENT, LAM HAD
MERELY REPEATED FAMILIAR THEME THAT AIR VIET- NAM SHOULD BE
EMPLOYED. THERE THE MATTER STANDS AT PRESENT.
WE ARE HOPEFUL THAT KHIEM' S MORE FORTHCOMING ATTITUDE WILL
CRYSTALIZE IN A DECISION FAVORABLE TO AIR AMERIA AND WE ARE
URGING THE ICCS TO PRESS THE MATTER DIRECTLY WITH HIM.
WHITEHOUSE
>>>>>>>
July 1973 - AIR AMERICA HELICOPTER HIT
AIR AMERICA HELICOPTER HIT BY SEVERAL ROUNDS OF SMALL
ARMS FIRE ABOUT 10 MILES SOUTHWEST OF BEN TRE KIEN HOA PROVINCE
AT ABOUT 0945 THIS MORNING JULY 12. THREE ROUNDS PENETRATED THROUGH
UNOCCUPIED CO-PILOT'S SEAT AND ONE HIT ROTOR BLADE. CHOPPER
LANDED SAFELY AT BEN TRE. NO RPT NO INJURIES.
LEHMANN
>>>>>>>
September 1973 - ICCS: AIR AIR AMERICAN CONTRACT
THE FOLLOWING IS THE TEXT OF THE MOST RECENT LETTER DATED 6
SEPTEMBER 1973 FROM AIR AMERICA TO THE ICCS DIRGEN. THIS LETTER
MAKES IT QUITE CLEAR THAT AIR AMERICA IS PREPARED TO CONTINUE
SERVICE TO ICCS AS LONG AS AIR AMERICA IS PAID PROMPTLY. THIS
INFORMATION WAS PROVIDED VERBALLY IN PERSON TO DIRGEN NUR BEFORE
AUGUST 31 MILITARY CHIEFS MEETING AT WHICH GEN SZUCS OF
HUNGDEL ANNOUNCED WITHDRAWAL OF HUNGDEL MEMBERS FROM CERTAIN SITES
(REF A).
2. BEGIN QTE
DEAR MR AMBASSADOR:
RECEIPT OF YOUR LETTER 7502-3 (DFLS) DATED 30 AUGUST AND
YOUR LETTER 7502-3 (TPT) IS ACKNOWLEDGED.
WHILE CONCERNED THAT THE YET UNAPPROVED ICCS BUDGET HAS PRECLUDED
ICCS FROM FULFILLING ITS OBLIGATION TO MAINTAIN THE ENCUMBERED
ACCOUNT IN THE CHARTERED BANK FROM WHICH PAYMENTS ARE MADE FOR
SERVICES RENDERED BY AIR AMERICA, WE ACKNOWLEDGED THAT PAYMENT OF
INVOICES SUBMITTED HAS BEEN PROMPT. WE DESIRE TO ASSIST IN ANY WAY
WE CAN AND PREPARED TO CONTINUE SERVICES DURING THIS CRITICAL
PERIOD PENDING ICCS BUDGET APPROVAL SUBJECT TO CONTINUED PROMPT
PAYMENT OF INVOICES WHEN SUBMITTED.
UPON APPROVAL OF THE ICCS BUDGET WE ANTICIPATE MONIES WILL BE
DEPOSITED TO THE ENCUMBERED ACCOUNT TO BRING THE FUNDS IN THE ACCOUNT
TO THE AGREED USD 1.5 MILLION LEVEL.
YOUR UNDERSTANDING IN THIS MATTER IS GREATLY APPRECIATED. AIR
AMERICA, INC. TAKES THIS OPPORTUNITY TO RENEW TO YOUR SECRETARIAT
AND TO THE ICCS, THE ASSURANCES OF ITS CONTINUED HIGH ESTEEM.
VERY TRULY YOURS,
AIR AMERICA, INC.
(SIGNED)
J.R. BARNHISEL
VICE PRESIDENT-SOUTH
DIVISION
END QTE.
APPLING
>>>>>>>
August 1973 - AIR SERVICES IN SUPPORT OF U.S. MISSION CIVILIAN OPERATIONS
FORMATION OF THE NEW LAO COALITION GOVERNMENT APPEARS
NEAR, AND IN THIS CONTEXT WE HAVE BEEN REVIEWING OUR
EARLIER CEASEFIRE PLANNING PAPERS ON FUTURE AIR SERVICES.
EXPERIENCE DURING THE PAST EIGHT MONTHS VALIDATES
ASSUMPTION WE MADE LAST DECEMBER THAT RLAF IN POST
CEASEFIRE ENVIRONMENT WILL BE ABLE TO PROVIDE ALL AIR
SERVICE SUPPORT FOR RLG MILITARY FORCES, BUT THAT THERE
WILL BE A CONTINUING REQUIREMENT FOR CONTRACT AIR SERVICES
TO DELIVER NON-MILITARY SUPPLIES, SUCH AS SUBSISTENCE AND
REFUGEE COMMODITIES, AND TO TRANSPORT PEOPLE, INCLUDING
MISSION PERSONNEL.
IN REVIEWING MEANS OF PROVIDING NON-MILITARY AIRLIFT
AND CORRESPONDING GROUND SERVICE SUPPORT, WE BELIEVE
ANALYSIS IN REF B IS STILL VALID; I.E. THAT CURRENT
CONTRACTORS AIR AMERICA (AA) AND CONTINENTAL AIR SERVICES,
INC. (CASI) WILL BE OBLIGED TO WITHDRAW FORM LAOS SOMETIME
AFTER FORMATION OF THE NEW COALITION GOVERNMENT. ALTHOUGH
CASI HAD NOT PREVIOUSLY BEEN SUBJECT TO SAME LPF ATTACKS
AS AA, CAPTURE OF CASI PILOT EMMET KAY, MAY 7, HAS
PROBABLY PREJUDICED CASI'S LONG RUN CHANCES OF CONTINUING
OPERATIONS IN LAOS. OUR VIEW THAT LPF WILL HAVE INFLUENTIAL
VOICE IN DETERMINING FUTURE OF THESE TWO CARRIERS HAS
RECENTLY BEEN REINFORCED BY APPARENT AGREEMENT BETWEEN TWO
LAO PARTIES THAT IN NEW PGNU LPF WILL HOLD MINISTRY OF
PUBLIC WORKS OF WHICH LAO DIRECTORATE OF CIVIL AVAIATION
(DCA) IS A PART. IN THIS CONNECTION, ARIZONA HELICOPTERS
(AHI), WITH ABOUT 14 AMERICAN EMPLOYEES AND 7 ROTARY WING
AIRCRAFT UNDER CONTRACT TO USG, IS (BECAUSE OF ITS SIZE
AND THE NATURE OF ITS ACTIVITIES) A MUCH LESS CONTROVERSIAL
FIRM AND DURING PGNU PERIOD MAY BE PERMITTED TO CONTINUE
ITS OPERATIONS TRANSPORTING MISSION PERSONNEL IN LAOS.
UNDER THESE CIRCUMSTANCES, WE BELIEVE IT PRUDENT TO
BEGIN THE TRANSITION TO AN ALTERNATIVE MEANS OF PROVIDING
THE REQUIRED CIVILIAN CARGO-CARRYING SERVICES. THE RLG'S
NATIONAL FLAG CARRIER ROYAL AIR LAO (RAL) IS THE MOST
LOGICAL ALTERNATIVE. IT IS HEADED BY THE SON OF THE PRIME
MINISTER; IT NOW OPERATES INTERNATIONAL FLIGHTS TO BANGKOK,
PHNOM PENH, SAIGON AND HONG KONG; IT HAS SCHEDULE FLIGHTS
TO MAJOR CITIES IN THE RLG ZONE; IT IS THE NATIONAL CARRIER
AND SHOULD, THEREFORE, BE MOST ACCEPTABLE TO THE LPF; AND
IT SEEMS TO HAVE THE MANAGEMENT CAPACITY AND WILL TO
ACCOMMODATE OUR REQUIREMENTS. MOREOVER IT HAS A CONTRACTUAL
ARRANGEMENT WITH AN AMERICAN COMPANY, TRANSAIR, FOR TWO
ELECTRAS TO ASSURE ITS INTERNATIONAL SCHEDULES. AT
PRESENT TIME, TRANSAIR ALREADY EMPLOYS ABOUT 10 AMERICANS
IN VIENTIANE.
WE THINK, AS A FIRST STEP, RAL COULD ASSUME A
SIGNIFICANT PORTION OF THE RICE AIRDROP MISSION NOW
BEING PERFORMED BY AIR AMERICA AND CONTINENTAL. THE US
MISSION IS CURRENTLY CONTRACTING FIVE C-46'S FOR RICE AIR
DROPS IN LAOS. TITLE TO TWO OF THESE AIRPLANES NOW OPERATED
BY AIR AMERICA LIES WITH RLG (THEY WERE GRANTED TO RLG IN
1964 BY USG); AND AIR AMERICA PROVIDES MAINTENANCE AND AIR
CREWS. RAL COULD OPERATE THESE TWO AIRCRAFT, EMPLOYING
AMERICAN PILOTS AND ARRANGING FOR THEIR MAINTENANCE, THE
LATTER, FOR EXAMPLE, BEING DONE THROUGH ITS ARRANGEMENT
WITH TRANSAIR. WE WOULD ADJUST THE CURRENT CONTRACT WITH
AIR AMERICA EFFECTIVE OCTOBER 1 AND ENTER INTO A NEW CON-
TRACT FOR THE TWO C-46'S WITH RAL EFFECTIVE THAT DATE.
THE TWO PLANES ARE NOW FLOWN ON AN AVERAGE OF 240 HOURS
PER MONTH OR 720 HOURS PER QUARTER AT AN AVERAGE COST
OF APPROXIMATELY $200 PER HOUR FOR A TOTAL
QUARTERLY CONTRACT COST OF $154 THOUSAND. IT WOULD
APPEAR REASONABLE FOR OUR USAID MISSION TO BECOME THE
CONTRACTOR APPLYING EXISTING COST SHARING FORMULAE.
THE STEPS OUTLINE ABOVE WOULD BE A FIRST MOVE IN
ARRANGING ALTERNATIVE MEANS TO OBTAIN REQUIRED AIR
SERVICES FOR THE FUTURE AND WOULD SIGNAL OUT INTENT TO
"LAO-IZE" IN THIS AREA. CASI WOULD STILL BE OPERATING
(A) THREE C 46'S FOR LARGE DROP ZONE MISSIONS AND FOR
POINT TO POINT MOVEMENT OF BULK CARGO AND (B) STOL
AIRCRAFT FOR MISSIONS TO SMALL INACCESSIBLE DROP ZONES.
WE WOULD ENVISION CONTINUING TO CONTRACT WITH CASI FOR
THESE AIRCRAFT AFTER OCTOBER 1 IF STILL ACCEPTABLE TO
THE PGNU. WE ARE STILL CONSIDERING THE FUTURE OF AIR
AMERICA GROUND SERVICES CONTRACT. AS EVENTS UNFOLD, WE
WILL HAVE A CLEARER VIEW OF OUR REQUIREMENTS AND OF THE
NATURE OF THE ENVIRONMENT IN WHICH WE MUST OPERATE; AND IN
THIS LIGHT WE WILL CONTINUE TO EXAMINE ADDITIONAL MEASURES
THAT MIGHT BE DESIRABLE OR NECESSARY TO "LAO-IZE" AIR
SERVICES NOW PROVIDED BY USG CONTRACTORS.
WE WILL NEXT WEEK BE INFORMING RLG OF OUR INTENTION
TO OFFER RAL CONTRACT TO OPERATE TWO C-46'S.
DEAN
>>>>>>>
October 1974 - ICCS FINANCES: STATUS OF CONTRACTS
IN ADDITION TO PA&E AND AIR AMERICA, ICCS LISTS THE FOLLOWING
SIX FIRMS AS CONTRACTORS: INDEX, FUJI-XEROX, AMERICAN ENTER-
PRISES, GRAND PACIFIC, MOVIE SERVICE CENTER, AND DR. NGUYEN
DINH LY.
INDEX IS A LOCAL FIRM ENTIRELY OWNED, AS FAR AS WE KNOW, BY
ROBERT BURNS, AN AMERICAN EX-USAID EMPLOYEE. INDEX IS
RESPONSIBLE FOR OPERATING THE ICCS OFFICERS' CLUB, MESS, AND
SNACK BAR IN SAIGON, AS WELL AS A SMALL PX-COMMISSARY
FACILITY. IN VIEW OF HIS FIRM'S DEPENDENCE ON US INSTALLATIONS,
BURNS MAINTAINS CLOSE CONTACT WITH THE EMBASSY'S ICCS LIAISON
UNIT. ACCORDING TO BURNS, HIS MONTHLY BILL TO THE ICCS IS
$9,881.50.
FUJI-XEROX IS A JAPANESE FIRM WITH A JAPANESE LOCAL MANAGEH.
THE CONTRACT WITH THE ICCS PROVIDES FOR THE USUAL SERVICE OF
PHOTOCOPY MACHINES. THE CONTRACT SPECIFIES THAT PAYMENT WILL BE
MADE TO THE FIRM'S HONG KONG BANK. THE LAST MONTHLY BILLING WAS
$12,713 ACCORDING TO PA&E. USDAO AND USAID ALSO HAVE CON-
TRACTS WITH THIS FIRM.
AMERICAN ENTERPRISES IS A SMALL LOCAL FIRM OWNED BY A
RESIDENT AMERICAN NAMED A. KELLY SHELTON. THE CONTRACT
REQUIRES THE FIRM TO BE READY TO PROVIDE THREE BOATS TO THE ICCS
FOR WATERBORNE TRANSPORTATION AT THE ICCS REGIONAL HEADQUARTERS
AT CAN THO AND MY THO, AT A COST OF SOME $1,800 PER MONTH.
GRAND PACIFIC SERVICES IS AN AMERICAN FIRM WITH ITS HEAD
OFFICE IN GUAN BUT THE OWNER LIVES IN HONOLULU. THE LOCAL MANAGER,
KAP JIN LEE, IS A KOREAN NATIONAL. THE CONTRACT PROVIDES THAT
GRAND PACIFIC WILL UNDERTAKE "MINOR CONSTRUCTION PROJECTS" FOR
THE ICCS ON A COST-PLUS BASIS. THE ICCS PROVIDER GRANL PICIFIC
WITH MODEST OFFICE AND WAREHOUSE SPACE IN THE ICCS AREA AT
TAN SON NHUT. THE ICCS HAS NOT INCURRED ANY BILLS FROM THIS
CONTRACTOR RECENTLY BECAUSE IT HAS NOT ORDERED ANY CONSTRUCTION
WORK.
MOVIE SERVICE CENTER IS A LOCAL VIETNAMESE FIRM WHICH PRO-
VIDES MOVIES FOR THE ICCS REGIONAL HEADQUARTERS IN THE FIELD FOR
APPROXIMATELY $850 PER MONTH. DR. NGUYEN DINH LY IS A
VIETNAMESE WHOSE LABORATORY PROVIDES X-RAY SERVICES GOR THE
ICCS, THE CONTRACT PROVIDING FOR A CHARGE OF $2.28 FOR EACH X-
RAY. ACCORDING TO AN ICCS SECRETARIAT OFFICIAL THE COST OF THIS
CONTRACT IS LESS THAN $300 PER MONTH.
COPIES OF FIVE OF THESE CONTRACTS ARE BEING POUCHED TO EA/
VN.
RE QUESTIONS 2 AND 3 OF REFTEL, PA&E SUBMITTED TO THE ICCS
A DRAFT OF A NEW COMPREHENSIVE CONTRACT AT THE END OF AUGUST.
THIS DRAFT IS STILL BEING CONSIDERED BY THE ICCS AD HOC COMMITTEE
ON CONTRACTS. MEANWHILE, BY INFORMAL AGREEMENT PA&E IS CON-
TINUING TO WORK ON THE BASIS OF THE EGPIRED CONTRACT EXCEPT THAT
THE ICCS HAS UNDERTAKEN TO PAY ALL PA&E INVOICES WITHIN FIVE
DAYS OF RECEIPT AS LONG AS THE ICCS HAS FUNDS, AND PA&E'S FEE
HAS BEEN RAISED TO 4.25 PERCENT. THE PRIMARY DIFFERENCE IN
THE MOST RECENT PATTERN OF PA&E COSTS FROM THE PATTERN REPORTED
IN SAIGON'S 11562 HAS BEEN A GREAT DECREASE IN THE COST OF AUTO-
MOBILE GASOLINE AFTER THE VIETNAMESE TAX WAS REMOVED (SAIGON
13232). THE COST OF SECURITY SERVICES MAY INCREASE, PARTICULARLY
SINCE THE RECENT BURGLARY OF IRANIAN AMBASSADOR SADRY'S
RESIDENCE SHOWED THE NEED FOR MORE GUARDS IN THAT ICCS COM-
POUND. PA&E ALSO FORECASTS REDUCTIONS IN PROJECTED CAPITAL
EXPENDITURES, MATERIAL COSTS, BUILDING AND GROUND MAINTENANCE,
AND GENERAL REPAIRS. PA&E HAS WORKED UP A NEW DRAFT BUDGET
FOR THE ICCS FOR THE LAST SIX MONTHS OF ITS CURRENT FISCAL YEAR.
DETERMINABLE NEW PATTERN OF PA&E CONTRACT COSTS WILL DEPEND
ON THE NEW CONTRACT AND ON THE REVISED BUDGET FOR THE REMAINING
SIX MONTHS. WILL REPORT ON OR POUCH DOCUMENTATION AS IT BE-
COMES AVAILABLE.
MEANWHILE, AIR AMERICA ON OCTOBER 4 SUBMITTED A PROPOSAL
TO THE ICCS FR A REDUCTION OF AIR SERVICES WITHIN ITS PRESENT
CONTRACT WHICH WOULD REDUCE MONTHLY COSTS BY AN ESTIMATED
$83,000. THIS PROPOSAL IS NOW BEING CONSIDERED BY THE ICCS
MILITARY COMMITTEE. TEXT POUCHED.
MARTIN
>>>>>>>
September 1974 - ICCS FINANCES: AIR AMERICA PLANS FOR TERMINATION OF SERVICES
THERE FOLLOWS TEXT OF SEPTEMBER 18 LETTER TO EA DEPUTY
ASSISTANT SECRETARY FROM AIR AMERICA PRESIDENT GRUNDY IN
WHICH GRUNDY INFORMS US THAT AIR AMERICA WILL TERMINATE
SERVICES FOR ICCS ON SEPTEMBER 30 UNLESS ICCS DEBTS OF AP-
PROXIMATELY 2 MILLION DOLLARS SETTLED BY THAT DATE.
BEGIN TEXT:
DEAR SIR:
AS YOU MAY KNOW, IT WAS WITH SOME RELUCTANCE THAT AIR
AMERICA AT THE DEPARTMENT'S REQUEST AGREED TO CONTINUE FLY-
ING SERVICES IN SUPPORT OF THE INTERNATIONAL COMMISSION
CONTROL AND SUPERVISION (ICCS) IN VIETNAM IN MARCH OF THIS
YEAR. PART OF THIS RELUCTANCE STEMMED FROM THE DIFFICULTIES
WE HAD EXPERIENCED IN THE PREVIOUS YEAR IN OBTAINING PAY-
MENT FOR SERVICES RENDERED UNDER THE ICCS CONTRACT. A
SECOND FACTOR WAS THAT THE COMPANY HAD MADE THE DECISION TO
WITHDRAW FROM ALL CONTRACTS IN THE FAR EAST DURING THE NEXT
YEAR. IN THE END, HOWEVER, WE DID ACCEPT A FURTHER CON-
TRACT IN SUPPORT OF THE ICCS ON THE BASIS THAT WE HAD THE
PROVEN CAPABILITY TO PERFORM THE SERVICES AND WE KNEW
- -
CONTINUATION OF THIS SERVICE WAS IN THE POLICY INTEREST OF
THE U. S. GOVERNMENT.
OUR EXPERIENCE IN RECEIVING PAYMENT FOR SERVICES RENDERED
SINCE THE EFFECTIVE DATE OF OUR NEW CONTRACT ON 1 MARCH
1974 HAS BEEN EXTREMELY DISAPPOINTING AND A MATTER OF
GRAVE CONCERN TO OUR COMPANY. AT THIS POINT IN TIME WHEN
OUR COMPANY IS UNDERGOING RETRENCHMENT, WE ARE CONCERNED
BOTH WITH THE DELINQUENCY IN PAYMENTS RECEIVED, AND THE
IMPACT OF THESE ARREARS IN MEETING OUR CASH REQUIREMENTS.
UNLESS ADDITIONAL PAYMENTS ARE RECEIVED PRIOR TO 30
SEPTEMBER 1974, OUR PROJECTED ESTIMATE OF THE INDEBTEDNESS
OF THE ICCS FOR SERVICES PERFORMED BY AIR AMERICA TO THAT
DATE WILL APPROXIMATE 2 MILLION DOLLARS. OUR CORPORATION
HAS HAD A LONG HISTORY OF PROVIDING SATISFACTORY SERVICES
IN SUPPORT OF U. S. GOVERNMENT PROGRAMS IN THE FAR EAST
AND IT IS CONTRARY TO OUR BASIC CORPORATE OBJECTIVES TO
CONTINUE SERVICES UNDER A CONTRACT WHEREIN PAYMENT FOR
SERVICES RENDERED IS A CONTINUING AND MAJOR PROBLEM. IT
IS FOR THESE REASONS THAT I HAVE BEEN ADVISED BY THE
CORPORATE BOARD OF DIRECTORS THAT I MUST SERVE NOTICE THAT
I HAVE NO ALTERNATIVE BUT TO DIRECT THAT SERVICES UNDER
THE ICCS CONTRACT CEASE UNLESS PAYMENT FOR THE ICCS CON-
TRACT IS MADE CURRENT AS OF 30 SEPTEMBER 1974 OR UNLESS
AIR AMERICA RECEIVES AN ACCEPTABLE GUARANTEE FROM AN AUTHO-
RIZED U. S. GOVERNMENT CONTRACTING OFFICER THAT PAYMENT
FOR THESE SERVICES WILL BE FORTHCOMING IN THE EVENT ICCS
DOES NOT MEET ITS PAYMENTS DIRECTLY. OUR REQUEST FOR THIS
GUARANTEE IS NOT LIMITED TO PAYMENTS CURRENTLY IN ARREARS,
BUT EXTENDS TO SERVICES THAT WILL BE PERFORMED FOR THE RE-
MAINING CONTRACT PERIOD.
IN OUR PREVIOUS DISCUSSIONS ON THIS SUBJECT, YOU HAVE IN-
DICATED THAT CONTINUING FLYING SERVICES FOR THE ICCS IS
IN THE POLICY INTEREST OF THE U. S. GOVERNMENT. I HAVE
CONVEYED THIS FACT TO THE BOARD OF DIRECTORS WHO HAVE EX-
PRESSED AN APPRECIATION OF THIS FACTOR BUT THEY HAVE MADE
IT CLEAR THAT IT IS OUR CORPORATE POLICY OF INSURING THAT
WE CONDUCT OUR CONTRACTUAL ACTIVITIES ON A BUSINESSLIKE
BASIS. THE BOARD OF DIRECTORS HAVE INSTRUCTED ME THAT
UNDER NO CIRCUMSTANCES CAN CORPORATE FUNDS BE UTILIZED TO
SUPPORT THE ICCS.
I HAVE PREVIOUSLY ADVISED THAT WE WOULD INFORM YOU PRIOR
TO ANY DECISION TO TERMINATE FLYING SERVICES FOR THE ICCS.
I REGRET THAT I NOW HAVE TO ADVISE YOU THAT I WILL SEND A
TELEGRAM ON FRIDAY, 20 SEPTEMBER 1974, TO MY VICE PRESI-
DENT FOR VIETNAM OPERATIONS, MR. VAR M. GREEN, THAT HE IS
TO PROMPTLY NOTIFY THE ICCS THAT AIR AMERICA WILL TERMI-
NATE FLYING AND OTHER SERVICES AT THE CLOSE OF BUSINESS ON
30 SEPTEMBER 1974 UNLESS PAYMENT FOR PAST SERVICES IS RE-
CEIVED FROM THE ICCS PRIOR TO THAT TIME.
IT WILL BE NECESSARY, OF COURSE, THAT PREPARATIONS FOR
SUCH TERMINATION BE INITIATED BY OUR COMPANY IN VIETNAM
NOT LATER THAN WEDNESDAY, 25 SEPTEMBER 1974 SAIGON TIME.
FOR REASONS I FEEL SURE THAT YOU WILL UNDERSTAND IT WOULD
BE ADVISABLE THAT PAYMENT OR GUARANTEE ACTIONS PROPOSED
ABOVE BE TAKEN BEFORE THIS TIME, IF THE TRIGGERING OF A
PROBABLE AVALANCHE OF EVENTS IS TO BE PRECLUDED.
SINCERELY, (S) HUGH L.-GRUNDY, PRESIDENT
END TEXT. KISSINGER
>>>>>>>
September 1974 - ICCS FINANCES: AIR AMERICA NOTICE OF INTENT TO TERMINATE SERVICES
AT 1345 SAIGON TIME SEPT 24, LOCAL AIR AMERICA MANAGER GREEN
WILL DELIVER LETTER TO ICCS DIRECTOR GENERAL STATING INVOICES
PRESENTLY OVERDUE TOTAL $951,034 AND INVOICES WHICH WILL BE OVER-
DUE IF NOT PAID BY OCT 1 TOTAL $443,374. IF ICCS CANNOT PAY
$1,394,408 BY SEPT 30, "ALL FLYING AND ANCILLARY SERVICES WILL
BE TERMINATED EFFECTIVE CLOSE OF BUSINESS SEPT 30."
GREEN STATES ICCS DIRECTOR GENERAL ALREADY AWARE OF SUBSTANCE
OF LETTER. GREEN STATES IF ICCS OFFERS TO PAY ONLY $951,043, HE
BELIEVES HE CAN PERSUADE HIS HEADQUARTERS TO AGREE TO EXTEND
DEADLINE PENDING FULL PAYMENT. GREEN BELIEVES NEXT STEP WILL BE
DEMAND BY AIR AMERICA THAT ICCS ESTABLISH IMPRESSED ACCOUNT.
HE STATES SUBSTANCE OF LETTER COORDINATED IN WASHINGTON.
LEHMANN
>>>>>>>
September 1974 - ICCS FINANCES: AIR AMERICA NOTICE OF INTENT TO TERMINATE SERVICES
LOCAL AIR AMERICA MANAGER GREEN HELD NEGOTIATING SESSION
WITH ICCS DIRECTOR GENERAL KHAZENI SEPT 26. GREEN PRESENTED AIR
AMERICA DEMAND FOR PAYMENT BY SEPT 30 OF $951,034 FOR IVOICES
OVERDUE NOW, $474,858 FOR INVOICES FOR WHICH FIRM INFO AVAILABLE
THROUGH SEPT 30, AND $650,831 FOR INVOICES BASED ON ESTIMATES,
TOTALLING $2,076,723. LATTER CATEGORY INCLUDES ESTIMATE CHARGES
FOR U.S. ARMY FOR UH-IH PARTS RECEIVED BUT NOT INVOICED
($222,025), REQUISITIONED TO REPLACE PARTS CONSUMED ($153,050),
PROJECTED COSTS FOR PARTS TO BE CONSUMED DURING SEPT 1974
($54,000), AND CONTINGENT LIABILITY FOR TRANSPORTATION COSTS OF
FOREGOING NOT YET BILLED AT 20 PERCENT OF COST ($182,478).
KHAZENI UNDERTOOK TO PAY FIRST TWO CATEGORIES, $951,034 AND
$474,858, BEFORE SEPT 30. HE ALSO UNDERTOOK TO PAY $650,831
SOONEST BUT NOTED IT WOULD TAKE ABOUT TEN DAYS OR UNTIL OCT 7
TO PROCESS THESE INVOICES.
GREEN UNDERTOOK TO REFER THE ICCS PROPOSAL ON THE $650,831
TO HIS PRINCIPALS IN WASHINGTON AND STATED HE NOT EMPOWERED TO
WITHDRAW NOTICE TO TERMINATE SEPT 30 UNLESS THESE PRINCIPALS
APPROVE.
LEHMANN
>>>>>>>
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