CIA Funding: Never Constrained by its Congressional Budget

How is it that the CIA has always found ways to spend past the means of its “black budget?”

In this fourth exclusive excerpt from author Peter Dale Scott’s new book “The American Deep State: Wall Street, Big Oil and the Attack on U.S. Democracy,” the professor emeritus of English at Berkeley and former Canadian diplomat lays out how the CIA has run slush funds since its inception.

In it, Scott marshals evidence that the proceeds of several U.S.-Saudi arms deals are the common denominator tying together every major “deep state” event involving the U.S. since 1976. 

Scott is considered the father of “deep politics”—the study of hidden permanent institutions and interests whose influence on the political realm transcends the elected. In “American Deep State,” he painstakingly details the facts lurking behind the official histories to uncover the real dynamics in play. Suicide Pact: The Radi... Napolitano, Andrew P. Best Price: $0.25 Buy New $2.84 (as of 04:15 EST - Details)

If you’d like to read more, please check out this excerpt detailing the hidden hands of the Continuity of Government Group aka the Doomsday Project, another on its resurgence after 9-11, and this analysis of how the revolving door between the CIA and Wall Street shapes global events.

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Since it first began to be involved in covert operations, the CIA has always been able to draw on funds that were not specifically authorized by Congress for that purpose. Allen Dulles, while still a lawyer at the influential Wall Street firm of Sullivan and Cromwell in New York, was able to arrange for this.

In 1946, General Vandenberg, as Director of Central Intelligence (DCI), recruited Dulles “to draft proposals for the shape and organization of what was to become the Central Intelligence Agency in 1947.” (1) Even earlier, Dulles began campaigning successfully Progressivism: A Prime... James Ostrowski Best Price: $8.99 Buy New $10.95 (as of 08:30 EST - Details) to reconstruct Western Europe through what became known as the Marshall Plan. (2) Together with George Kennan and James Forrestal, Dulles also “helped devise a secret codicil [to the Marshall Plan] that gave the CIA the capability to conduct political warfare. It let the agency skim millions of dollars from the plan.” (3)

Funds diverted from the Marshall Plan were soon used to establish a

“‘compatible left’ labor union in Marseilles with Pierre Ferri-Pisani. On behalf of Brown and the CIA, Ferri-Pisani (a drug smuggler connected with Marseilles crime lord Antoine Guerini), hired goons to shellack striking Communist dock workers.” (4)

The CIA also made systematic use in Asia of self-financing drug trafficking forces to increase its covert influence—in Thailand and Burma, then in Laos and Vietnam, and most recently in Afghanistan. (5) With America’s expansion overseas, we have seen more and more covert programs and agencies, all using drug traffickers to different and opposing ends. The Lone Gladio Sibel D. Edmonds Best Price: $2.36 Buy New $15.49 (as of 03:55 EST - Details)

In 2004, Time and USA Today ran major stories about two of the chief Afghan drug traffickers, Haji Juma Khan and Haji Bashir Noorzai, alleging that each was supporting al-Qaeda, and that Khan in particular “has helped al-Qaeda establish a smuggling network that is peddling Afghan heroin to buyers across the Middle East, Asia and Europe.” (6) Later it was revealed that both traffickers were simultaneously CIA assets, and that Khan in particular was “paid a large amount of cash by the United States,” even while he was reportedly helping al-Qaeda to establish smuggling networks. (7)

There is no longer anything surprising in the news that large U.S. payments were made to a drug trafficker who was himself funding the Taliban and al-Qaeda. The arrangement is no more bizarre than the CIA’s performance during the U.S. “war on drugs” in Venezuela in the 1990s, when the CIA first set up an anti-drug unit in Venezuela, and then helped its chief, Gen. Ramon Guillén Davila, smuggle at least one ton of pure cocaine into Miami International Airport. (8)

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