Date: Mon Jan  4 03:45:06 est 1993
From: "John Covici" <covici@ccs.covici.com>
Message-Id: <2b47f928.ccs@ccs.covici.com>
Reply-To: "John Covici" <covici@ccs.covici.com>
Organization: Covici Computer Systems
To: uunet!css.itd.umich.edu!pauls@uunet.UU.NET
Subject: Unauthorized Biography of George Bush: Part 22
Status: O
{XVII: Campaign 1980} 


Shortly after leaving Langley,
Bush asserted his birthright as an
international financier, that is to
say, he became a member of the board of
directors of a large bank. On February
22, 1977, Robert H. Stewart III, the
chairman of the holding company for
First International Bankshares of
Dallas, announced that Bush would
become the chairman of the executive
committee of First International Bank
of Houston, and would simultaneously
become a director of First
International Bankshares Ltd. of
London, a merchant bank owned by First
International Bankshares, Inc. Bush
also became a director of First
International Bankshares, Inc.
(``Interfirst''), which was the
Dallas-based holding company for the
entire international group. 
   During the 1988 campaign, Bush
gave the implacable stonewall to any
questions about the services he
performed for the First International
Bankshares group or about any other
aspects of his business activities
during the pre-1980 interlude. 
   Later, after the Reagan-Bush orgy
of speculation and usury had ruined the
Texas economy, the Texas commercial
banks began to collapse into
bankruptcy. Interfirst merged with
RepublicBank during 1987 to form First
RepublicBank, which became the biggest
commercial bank in Texas. Bankruptcy
overtook the new colossus just a few
months later, but federal regulators
delayed their inevitable intervention
until after the Texas primary, in the
spring of 1988, in order to avoid a
potentially acute embarrassment for
Bush. Once Bush had the presidential
nomination locked up, the Federal
Deposit Insurance Corporation, with the
connivance of the IRS, awarded the
assets of First RepublicBank to the
North Carolina National Bank in
exchange for no payment whatsoever on
the part of NCNB (now NationsBank).
   During the heady days of Bush's
directorship at Interfirst, the bank
retained a law firm in which one
Lawrence Gibbs was a partner.
   Gibbs, a clear Bush asset, was
made commissioner of the Internal
Revenue Service on August 4, 1986.
Here, he engineered the sweetheart deal
for NCNB by decreeing $1.6 billion in
tax breaks for this bank. This is
typical of the massive favors and graft
for pro-Bush financier interests at the
expense of the taxpayer which are the
hallmark of the Bush machine. Lawrence
Gibbs also approved IRS participation
in the October 6, 1986 federal-state
police raid against premises and
persons associated with the political
movement of Lyndon H. LaRouche in
Leesburg, Virginia. This raid was a
leading part of the Bush machine's long
term effort to eliminate centers of
political opposition to Bush's 1988
presidential bid. And LaRouche had been
a key adversary of Bush dating back to
the 1979-80 New Hampshire primary
campaign, as we will shortly document. 
   Bush also joined the board of
Purolator Oil Company in Rahway, New
Jersey, where his crony, Wall Street
raider Nicholas Brady (later Bush's
Secretary of the Treasury) was the
chairman. Bush also joined the board of
Eli Lilly & Co., a very large and very
sinister pharmaceutical company. The
third board Bush joined was that of
Texas Gulf, Inc. Bush's total 1977
rakeoff from the four companies with
which he was involved was $112,000,
according to Bush's 1977 tax return. 
   Bush also found time to line his
pockets in a series of high-yield deals
that begin to give us some flavor of
what would later be described as the
``financial excesses of the 1980s,'' in
which Bush's circle was to play a
decisive role. 
   A typical Bush venture of this
period was Ponderosa Forest Apartments,
a highly remunerative speculative play
in real estate. Ponderosa bought up a
180-unit apartment complex near Houston
that was in financial trouble,
gentrified the interiors, and hiked the
rents. Horace T. Ardinger, a Dallas
real estate man who was among Bush's
partners in this deal, described the
transaction as ``a good tax gimmick ...
and a typical Texas joint venture
offering.'' 
   According to Bush's tax returns
from 1977 through 1985, the Ponderosa
partnership accrued to Bush a paper
loss of $225,160, which allowed him to
avoid payment of some $100,000 in
federal taxes alone, plus a direct
profit of over $14,000 and a capital
gain of $217,278. This type of windfall
represents precisely the form of real
estate swindle that contributed to the
Texas real estate and banking crisis of
the mid-1980s. The deal illustrates one
of the important ways in which the
federal tax base has been eroded
through real estate scams. We also see
why it is no surprise that the one
fiscal innovation which has earned
Bush's sustained attention is the idea
of a reduction in the capital gains tax
to allow those who engage in swindles
like these to pay an even smaller
federal tax bite. 
   But Bush's main preoccupation
during these years was to assemble a
political machine with which he could
bludgeon his way to power. After his
numerous frustrations of the past, Bush
was resolved to organize a campaign
that would go far beyond the innocuous
exercise of appealing for citizens'
votes. If such a machine were actually
to succeed in seizing power in
Washington, tendencies toward the
creation of an authoritarian police
state would inevitably increase. 

   The Spook Campaign Machine
 
   Bush assembled quite a campaign
machine. 
   One of the central figures of the
Bush effort would be James Baker III,
Bush's friend of ten years' standing.
Baker's power base derived first of all
from his family's Houston law firm,
Baker & Botts, which was founded just
after the end of the Civil War by
defeated partizans of the Confederate
cause.
   Baker & Botts founder Peter Gray
had been assistant treasurer of the
Confederate States of America and
financial supervisor of the CSA's
``Trans-Mississippi Department.'' Gray,
acting on orders of Confederate
Secretary of State Robert Toombs,
financed the subversive work of
Confederate Gen. Albert Pike among the
Indian tribes of the Southwest. The
close of the war in 1865 had found Pike
hiding in Canada, and Toombs in exile
in England. Pike was excluded from the
general U.S. amnesty for rebels because
he was thought to have induced Indians
to commit massacres and war crimes. 
   Pike and Toombs reestablished the
``Southern Jurisdiction'' of the
Scottish Rite of Freemasonry, of which
Pike had been the leader in the slave
states before the Civil War. Pike's
deputy, one Phillip C. Tucker, returned
from Scottish Rite indoctrination in
Great Britain to set up a Scottish Rite
lodge in Houston in the spring of 1867.
Tucker designated Walter Browne Botts
and his relative Benjamin Botts as the
leaders of this new Scottish Rite
lodge.@s1 The policy of the Scottish
Rite was to regroup unreconstructed
Confederates to secure the
disenfranchisement of black citizens
and to promote Anglophile domination of
finance and business. 
   By the beginning of the twentieth
century, there were two great powers
dominating Texas: On the one hand, the
railroad empire of E.H. Harriman,
served by the law firm of Baker &
Botts; and on the other, the
British-trained political operative
Colonel Edward M. House, the controller
of President Woodrow Wilson. The close
relation between Baker & Botts and the
Harriman interests has remained in
place down to the present. And since
the time that Captain James A.
Baker founded the Texas Commerce
Bank, the Baker family has helped the
London-New York axis run the Texas
banking system. 
   In 1901, the discovery of large
oil deposits in Texas offered great
promise for the future economic
development of the state, but also
attracted the Anglo-American oil
cartel. The Baker family law firm in
Texas, like the Bush and Dulles
families in New York, was aligned with
the Harriman-Rockefeller cartel.
   The Bakers were prominent in
supporting eugenics and
utopian-feudalist social engineering.
Captain James A. Baker, so
the story goes, the grandfather of the
current boss of Foggy Bottom, solved
the murder of his client William Marsh
Rice and took control of Rice's huge
estate. Baker used the money to start
Rice University and became the chairman
of the school's board of trustees.
Baker sought to create a center for
diffusion of racist eugenics, and for
this purpose brought in Julian Huxley
of the infamous British oligarchical
family to found the biology program at
Rice starting in 1912.@s2 Huxley was
the vice president of the British
Eugenics Society and actually helped to
organize ``race science'' programs for
the Nazi Interior Ministry, before
becoming the founding director general
of UNESCO in 1946-48.
   James A. Baker III was born April
28, 1930, in the fourth generation of
his family's wealth. Baker holdings
have included Exxon, Mobil, Atlantic
Richfield, Standard Oil of California,
Standard Oil of Indiana, Kerr-McGee,
Merck, and Freeport Minerals. Baker
also held stock in some large New York
banks during the time that he was
negotiating the Latin American debt
crisis in his capacity as secretary of
the treasury.@s3 
   James Baker grew up in patrician
surroundings. His social profile has
been described as ``Tex-prep.'' Like
his father, James III attended the Hill
School near Philadelphia, and then went
on to Princeton, where he was a member
of the Ivy Club, a traditional preserve
of Eastern Anglophile Liberal
Establishment oligarchs.
   Baker & Botts maintains an
``anti-nepotism'' policy, so James III
became a boss of Houston's Andrews,
Kurth, Campbell & Jones law firm, a
satellite of Baker & Botts. Baker's
relation to Bush extends across both
law firms: In 1977, Baker & Botts
partner Blaine Kerr became president of
Pennzoil, and in 1979, Baker & Botts
partner B.J. Mackin became chairman of
Zapata Corporation. Baker & Botts have
always represented Zapata, and are
often listed as counsel for
Schlumberger, the oil services firm.
James Baker and his Andrews, Kurth
partners were the Houston attorneys for
First International Bank of Houston
when George Bush was chairman of the
bank's executive committee. 
   During the 1980 campaign, Baker
became the chairman of the Reagan-Bush
campaign committee, while fellow Texan
Bob Strauss was chairman of the
Carter-Mondale campaign. But Baker and
Strauss were at the very same time
business partners in Herman Brothers,
one of America's largest beer
distributors. Bush Democrat Strauss
later went to Moscow as Bush's
ambassador to the U.S.S.R., and later,
to Russia. 
   Another leading Bush supporter was
Ray Cline. During 1979, it was Ray
Cline who had gone virtually public
with a loose and informal, but highly
effective, campaign network mainly
composed of former intelligence
officers. Cline had been the CIA
station chief in Taiwan from 1958 to
1962. He had been deputy director of
central intelligence from 1962 to 1966,
and had then gone on to direct the
intelligence-gathering operation at the
State Department. Cline became a de
facto White House official during the
first Bush administration, and wrote
the White House boiler plate entitled
``National Security Strategy of the
United States,'' under which the Gulf
war was carried out. 
   Heading up the Bush campaign
muckraking ``research'' staff was
Stefan Halper, Ray Cline's son-in-law
and a former official of the Nixon
White House. 
   A member of Halper's staff was a
CIA veteran named Robert Gambino.
Gambino had held the sensitive post of
director of the CIA's Office of
Security. The Office of Security is
reputed to possess extensive files on
the domestic activities of American
citizens. David Aaron, Brzezinski's
deputy at the Carter National Security
Council, recalled that some high Carter
officials were ``upset'' that Gambino
had gone to work for the Bush camp.
According to Aaron, ``several [CIA]
people took early retirement and went
to work for Bush's so-called security
staff. The thing that upset us, was
that a guy who has been head of
security for the CIA has been privy to
a lot of dossiers, and the possibility
of abuse was quite high, although we
never heard of any occasion when
Gambino called someone up and forced
them to do something for the
campaign.''@s4 
   Other high-level spooks active in
the Bush campaign included Lt. Gen. Sam
V. Wilson and Lt. Gen. Harold A. Aaron,
both former directors of the Defense
Intelligence Agency. Another
enthusiastic Bushman was retired Gen.
Richard Stillwell, formerly the CIA's
chief of covert operations for the Far
East. The former deputy director for
operations, Theodore Shackley, was also
on board, reportedly as a speechwriter,
but more likely for somewhat heavier
work. 
   According to one estimate, at
least 25 former intelligence officials
worked directly for the Bush campaign.
As Bill Peterson of the {Washington
Post} wrote on March 1, 1980, ``Simply
put, no presidential campaign in recent
memory--perhaps ever--has attracted as
much support from the intelligence
community as the campaign of former CIA
Director George Bush.'' 
   Further intelligence veterans
among the Bushmen included Daniel C.
Arnold, the former CIA station chief in
Bangkok, Thailand, who retired early to
join the campaign during 1979. Harry
Webster, a former clandestine agent,
became a member of Bush's paid staff
for the Florida primary. CIA veteran
Bruce Rounds was Bush's ``director of
operations'' during the key New
Hampshire primary. Also on board with
the Bushmen was Jon R. Thomas, a former
clandestine operative who had been
listed as a State Department official
during a tour of duty in Spain, and who
later worked on terrorism and
drug-trafficking at the State
Department. Andrew Falkiewicz, the
former spokesman of the CIA in Langley,
attended some of Bush's pre-campaign
brainstorming sessions as a consultant
on foreign policy matters. 
   One leading bastion of the Bushmen
was predictably David Atlee Philips's
AFIO, the Association of Former
Intelligence Officers. Jack Coakley was
a former director and Bush's campaign
coordinator for Virginia. He certified
that at the AFIO annual meeting in the
fall of 1979, he counted 190 ``Bush for
President'' buttons among 240 delegates
to the convention.@s5
   James Baker was the obvious choice
to be Bush's campaign manager. He had
served Bush in this function in the
failed Senate campaign of 1970. During
the Ford years, Baker had advanced to
become deputy secretary of commerce.
Baker had been the manager of Ford's
failed 1976 campaign. In 1978, Baker
had attempted to get himself elected
attorney general of Texas, but had been
defeated. 
   David Keene was political adviser.
And, as always, no Bush campaign would
be complete without Robert Mosbacher
heading up the national finance
operation. Mosbacher's experience, as
we have seen, reached back to the Bill
Liedtke conveyances to Maurice Stans of
the CREEP in 1972.
   With the help of Baker and
Mosbacher, Bush began to set up
political campaign committees that
could be used to convoy quasi-legal
``soft money'' into his campaign
coffers. This is the classic stratagem
of setting up political action
committees that are registered with the
Federal Election Commission for the
alleged purpose of channeling funds
into the campaigns of deserving
Republican (or Democratic) candidates.
In reality, almost all of the money is
used for the presidential candidate's
own staff, office, mailings, travel and
related expenses. Bush's principal
vehicle for this type of funding was
called the Fund for Limited Government.
During the first six months of 1987,
this group collected $99,000 and spent
$46,000, of which only $2,500 went to
other candidates.
   Despite the happy facade, Bush's
campaign staff was plagued by turmoil
and morale problems, leading to a high
rate of turnover in key posts. 
   One who has stayed on all along
has been Jennifer Fitzgerald, a British
woman born in 1932 who had been with
Bush at least since Beijing. Fitzgerald
later worked in Bush's
vice-presidential office, first as
appointments secretary, and later as
executive assistant. According to some
Washington wags, she controlled access
to Bush in the same way that Martin
Bormann controlled access to Hitler.
According to Harry Hurt, among former
Bush staffers, ``Fitzgerald gets
vituperative reviews. She has been
accused of bungling the 1980
presidential campaign by canceling Bush
appearances at factory sites in favor
of luncheon club speeches. Critics of
her performance say she misrepresents
staff scheduling requests and blocks
access to her boss.... A number of the
vice president's close friends worry
that `the Jennifer problem'--or the
appearance of one--may inhibit Bush's
future political career. `There's just
something about her that makes him feel
good,' says one trusted Bush
confidant. `I don't think it's sexual.
I don't know what it is. But if Bush
ever runs for president again, I think
he's going to have to make a change on
that score.''@s6

   The Establishment's
Candidate
 
   Bush formally announced his
presidential candidacy on May 1, 1979.
One of Bush's themes was the idea of a
``Union of the English-Speaking
Peoples.'' Bush was asked later in his
campaign by a reporter to elaborate on
this. Bush stated at that time that
``the British are the best friend
America has in the world today. I
believe we can benefit greatly from
much close collaboration in the
economic, military, and political
spheres. Sure, I am an Anglophile. We
should all be. Britain has never done
anything bad to the United
States.''@s7
   Together with James Baker III,
always the idea man of the Bush-Baker
combo, the Bush campaign studied Jimmy
Carter's success story of 1976. They
knew they were starting with a ``George
Who?'' virtually unknown to most
voters. First of all, Bush would ape
the Carter strategy of showing up in
Iowa and New Hampshire early and often.
   Thanks to Mosbacher's operation,
the Bush campaign would advance on a
cushion of money--he spent $1.3 million
for the Illinois primary alone. The
biggest item would be media buys--above
all television. This time Bush brought
in Baltimore media expert Robert
Goodman, who designed a series of
television shorts that were described
as ``fast-moving, newsfilmlike
portraits of an energetic, dynamic Bush
creating excitement and moving through
crowds, with an upbeat musical track
behind him. Each of the advertisements
used a slogan that attempted to
capitalize on Bush's experience, while
hitting Carter's wretched on-the-job
performance and Ronald Reagan's
inexperience on the national scene:
`George Bush,' the announcer intoned,
`a President we won't have to
train.'|''@s8
   On November 3, 1979, Bush bested
Sen. Howard Baker in a ``beauty
contest'' straw poll taken at the Maine
Republican convention in Portland. Bush
won by a paper-thin margin of 20 votes
out of 1,336 cast, and Maine was really
his home state, but the Brown Brothers
Harriman networks at the {New York
Times} delivered a front-page lead
story with a subhead that read, ``Bush
Gaining Stature as '80 Contender.'' 
   Bush's biggest lift of the 1980
campaign came when he won a plurality
in the January 21 Iowa caucuses,
narrowly besting Reagan, who had not
put any effort into the state. At this
point, the Brown Brothers
Harriman/Skull and Bones media
operation went into high gear. That
same night Walter Cronkite told
viewers: ``George Bush has apparently
done what he hoped to do, coming out of
the pack as the principal challenger to
front-runner Ronald Reagan.'' 
   In the interval between January 21
and the New Hampshire primary of
February 26, the Eastern Liberal
Establishment labored mightily to put
George Bush into power as President
that same year. The press hype in favor
of Bush was overwhelming. {Newsweek}'s
cover featured a happy and smiling Bush
talking with his supporters: ``Bush
Breaks Out of the Pack,'' went the
headline.
   {Time}, which had been founded by
Henry Luce of Skull and Bones, showed a
huge, grinning Bush and a smaller, very
cross Reagan, headlined: ``BUSH
SOARS.'' The leading polls, always
doctored by the intelligence agencies
and other interests, showed a Bush
boom: Lou Harris found that whereas
Reagan had led Bush into Iowa by 32-6
nationwide, Bush had pulled even with
Reagan at 27-27 within 24 hours after
the Iowa result had become known. 
   Robert Healy of the {Boston Globe}
stuck his neck out even further for the
neo-Harrimanite cause with a forecast
that ``even though he is still called
leading candidate in some places,
Reagan does not look like he'll be on
the Presidential stage much longer.'' 
   NBC's Tom Brokaw started calling
Reagan the ``former front-runner.'' Tom
Pettit of the same network was more
direct: ``I would like to suggest that
Ronald Reagan is politically dead.''
   The Eastern Liberal Establishment
had left no doubt who its darling was:
Bush, and not Reagan. In their
arrogance, the Olympians had once again
committed the error of confusing their
collective patrician whim with real
processes ongoing in the real world.
The New Hampshire primary was to prove
a devastating setback for Bush, in
spite of all the hype the Bushman
networks were able to crank out. How
did it happen? 

   New Hampshire: The LaRouche
Factor
 
   George Bush was, of course, a
lifelong member of the Skull and Bones
secret society of Yale University,
through which he advanced toward the
freemasonic upper reaches of the
Anglo-American Establishment, toward
those exalted circles of London, New
York and Washington, in which the
transatlantic destiny of the
self-styled Anglo-Saxon master race is
elaborated. The entrees provided by
Skull and Bones membership would always
be, for Bush, the most vital ones. But,
in addition to such exalted feudal
brotherhoods as Skull and Bones, the
Anglo-American Establishment also
maintains a series of broader-based
elite organizations whose function is
to manifest the hegemonic
Anglo-American policy line to the
broader layers of the Establishment,
including bureaucrats, businessmen,
bankers, journalists, professors and
other such assorted retainers and
stewards of power. 
   George Bush had thus found it
politic over the years to become a
member of the New York Council on
Foreign Relations. By 1979, Bush was a
member of the board of the CFR, where
he sat next to his old patron Henry
Kissinger. The president of the CFR
during this period was Kissinger clone
Winston Lord of the traditional Skull
and Bones family. 
   George was also a member of the
Bohemian Club of San Francisco, which
had been founded by Ambrose Bierce
after the Civil War to cater to the
Stanfords, Huntingtons, Crockers,
Hopkinses and the other nouveau-riche
tycoons that had emerged from the gold
rush.
   Then there was the Trilateral
Commission, founded by David
Rockefeller in 1973-74. The Trilateral
Commission emerged at the same time
that the Rockefeller-Kissinger
interests perpetrated the first oil
hoax. Some of its first studies were
devoted to the mechanics of imposing
authoritarian-totalitarian forms of
government in the United States,
Europe, and Japan to manage the
austerity and economic decay that would
be the results of Trilateral policies. 
   As we saw briefly during Bush's
Senate campaign, the combination of
bankruptcy and arrogance which was the
hallmark of Eastern Liberal
Establishment rule over the United
States generated resentments which
could make membership in such
organizations a distinct political
liability. That the issue exploded in
New Hampshire during the 1979-80
campaign in such a way as to wreck the
Bush campaign was largely the merit of
Lyndon LaRouche, who had launched an
outsider bid in the Democratic primary. 
   LaRouche conducted a vigorous
campaign in New Hampshire during late
1979, focusing on the need to put
forward an economic policy to undo the
devastation being wrought by the 22
percent prime rate being charged by
many banks as a result of the
high-interest, usurious policies of
Paul Volcker, whom Carter had made the
head of the Federal Reserve. But in
addition to contesting Carter, Ted
Kennedy and Jerry Brown on the
Democratic side, LaRouche's campaign
also noticed George Bush, whom LaRouche
correctly identified as a liberal
Republican in the Theodore
Roosevelt-House of Morgan ``Bull
Moose'' tradition of 1912. 
   During late 1979, the LaRouche
campaign began to call attention to
Bush as a threat against which other
candidates, Republicans and Democrats,
ought to unite. LaRouche attacked Bush
as the spokesman for ``the folks who
live on the hill,'' for petty oligarchs
and blue bloods who think that it is up
to them to dictate political decisions
to the average citizen. These
broadsides were the first to raise the
issue of Bush's membership in David
Rockefeller's Trilateral Commission and
in the New York Council on Foreign
Relations.
   While on the hustings in New
Hampshire, LaRouche observed the high
correlation between preppy, liberal
Republican, blue-blooded support for
Bush and mental pathology. As LaRouche
wrote, ``In the course of campaigning
in New Hampshire during 1979 and 1980,
I have encountered minds, especially in
western New Hampshire, who represent,
in a decayed sort of way, exactly the
treasonous outlook our patriotic
forefathers combatted more than a
century or more ago. Naturally, since I
am an American Whig by family ancestry
stretching back into the early 19th
century, born a New Hampshire Whig, and
a Whig Democrat by profession today,
the blue-blooded kooks of certain
`respected' Connecticut River Valley
families get my dander up.''@s9
   LaRouche's principal charge was
that George Bush was a ``cult-ridden
kook, and more besides.'' He cited
Bush's membership in ``the secret
society which largely controls George
Bush's personal destiny, the Russell
Trust Association, otherwise known as
`Skull and Bones'.... Understanding the
importance of the Russell Trust
Association in Bush's adult life will
help the ordinary citizen to understand
why one must place a question mark on
Bush's political candidacy today. Is
George Bush a `Manchurian candidate'?'' 
   After noting that the wealth of
many of the Skull and Bones families
was derived from the British East India
Company's trade in black slaves and in
opium, LaRouche went on to discuss
``How Yale Turned `Gay'|'': 
   ``Today, visiting Yale, one
sees male students walking hand in
hand, lovers, blatantly, on the
streets. One does not permit one's boy
children to visit certain of the
residences on or around that campus.
There have been too many incidents to
be overlooked. One is reminded of the
naked wrestling in the mud which
initiates to the Yale Skull and Bones
Society practice. One thinks of `Skull
and Boneser' William F. Buckley's
advocacy of the dangerous,
mind-wrecking substance, marijuana, and
of Buckley's recent, publicly expressed
sympathies for sodomy between male
public school teachers and students.... 
   ``As the anglophile commitments [of
the blue-blooded families] deepened and
decayed, the families reflected this in
part by a growth of the incidence of
`homosexuality' for which British
public schools and universities are
rightly notorious. Skull and Bones is a
concentrated expression of that moral
and intellectual degeneration.''
   LaRouche pointed out that the
symbol of Skull and Bones is the skull
and crossbones of the pirate Jolly
Roger with ``322'' placed under the
crossbones. The 322 is thought to refer
to 322 B.C., the year of the death of
the Athenian orator Demosthenes, whom
LaRouche identified as a traitor to
Athens and an agent provocateur in the
service of King Philip of Macedonia.
The Skull and Bones ceremony of
induction and initiation is modeled on
the death and resurrection fetish of
the cult of Osiris in ancient Egypt.
LaRouche described the so-called
``Persian model'' of oligarchical rule
sought by Skull and Bones: 
   ``The `oligarchical' or
`Persian' model was what might be
called today a `neo-Malthusian' sort
of `One World' scheme. Science and
technological progress were to be
essentially crushed and most of the
world turned back into labor-intensive,
`appropriate' technologies. By
driving civilization back toward
barbarism in that way, the sponsors of
the `oligarchical model' proposed to
ensure the perpetuation of a kind of
`one world' rule by what we would
term today a `feudal landlord' class.
To aid in bringing about that `{One
World Order},' the sponsors of the
project utilized a variety of religious
cults. Some of these cults were
designed for the most illiterate strata
of the population, and, at the other
extreme, other cults were designed for
the indoctrination and control of the
ruling elite themselves. The
cult-organization under the Roman
Empire is an excellent example of what
was intended.''
   LaRouche went on: ``Skull and
Bones is no mere fraternity, no special
alumni association with added
mumbo-jumbo. It is a very serious, very
dedicated cult-conspiracy against the
U.S. Constitution. Like the Cambridge
Apostles, the initiate to the Skull and
Bones is a dedicated agent of British
secret intelligence for life. The
fifteen Yale recruits added each year
function as a powerful secret
intelligence association for life,
penetrating into our nation's
intelligence services as well as
related high levels of national
policy-making. 
   ``Representatives of the cult who
have functioned in that way include
Averell Harriman, Henry Luce, Henry
Stimson, Justice Potter Stewart,
McGeorge Bundy, Rev. William Sloane
Coffin (who recruited William F.
Buckley), William Bundy, J. Richardson
Dilworth, and George Bush ... and many
more notables. The list of related
Yalies in the history of the CIA
accounts for many of the CIA's failures
and ultimate destruction by the Kennedy
machine, including the reason Yalie
James Jesus Angleton failed to uncover
H. `Kim' Philby's passing of CIA
secrets to Moscow. 
   ``Now, the ordinary citizen should
begin to realize how George Bush became
a kook-cultist, and also how so
incompetent a figure as Bush was
appointed for a while Director of
Central Intelligence for the CIA.... 
   ``On the record, the ordinary
citizen who knew something of Bush's
policies and sympathies would class him
as a `Peking sympathizer,' hence a
Communist sympathizer.'' 
   Focusing on Bush's links with the
Maoist regime, LaRouche stressed the
recent genocide in Cambodia: ``The genocide of three out
of seven million Cambodians by the
Peking puppet regime of Pol Pot
(1975-78) was done under the direction
of battalions of Peking bureaucrats
controlling every detail of the
genocide--the worst genocide of the
present century to date. This genocide,
which was aimed especially against all
merely literate Cambodians as well as
professional strata, had the purpose of
sending all of Southeast Asia back into
a `dark age.' That `dark age'
policy is the policy of the present
Peking regime. That is the regime which
Kissinger, Bush and Brzezinski admire
so much as an `ally'.... 
   ``The leading circles of London
have no difficulty in recognizing what
`Peking Communism' is. It is their
philosophy, their policy in a Chinese
mandarin culture form. To the extent
that Yalies of the Skull and Bones sort
are brought into the same culture as
their superiors in London, such Yalies,
like Bush, also have deep affection for
`Peking Communism.' 
   ``Like Bush, who supports
neo-Malthusian doctrines and
zero-growth and anti-nuclear policies,
the Peking rulers are dedicated to a
`one world' order in which the
population is halved over the next
twenty years (i.e. genocide far greater
than Hitler's), and most of the
survivors are driven into barbarism and
cultism under the rule of parasitical
blue blood families of the sort
represented in the membership of the
Skull and Bones. 
   ``In that sense, Bush is to be
viewed without quibble as a
`Manchurian candidate.' From the
vantage point of the U.S. Constitution
and American System of technological
progress and capital formation, Bush is
in effect an agent of the same evil
philosophies and policies as the rulers
of Peking. 
   ``That, dear friends, is not mere
opinion; that is hard fact.''@s1@s0 
   This leaflet represented the most
accurate and devastating personal and
political indictment Bush had ever
received in his career. It was clear
that LaRouche had Bush's number. The
linking of Bush with the Cambodian
genocide is all the more surprising,
since most of the evidence on Bush's
role was at that time not in the public
domain. Other aspects of LaRouche's
comments are prophetic: Bush's ``deep
affection'' for Chinese communism was
to become an international scandal when
Bush maintained his solidarity with
Deng Xiaoping after the Tiananmen
massacre of 1989. Outstanding is
LaRouche's reference to the `One World
Order' which the world began to wonder
about as the `New World Order' in the
late summer of 1990, during the buildup
for Bush's Gulf war; LaRouche had
identified the policy content of the
term way back in 1980. 
   Bush's handlers were stunned, then
enraged. No one had ever dared to stand
up to George Bush and Skull and Bones
like this before. The Bush entourage
wanted revenge. A vote fraud to deprive
LaRouche of virtually all the votes
cast in the Democratic primary, and
transfer as many of them as possible to
the Bush column, would be the first
installment. Later, Gary Howard and Ron
Tucker, two agents provocateur from
Midland, Texas, were dispatched to try
to infiltrate pro-LaRouche political
circles. From 1986 on, Bush would
emerge as a principal sponsor of a
judicial vendetta by the Department of
Justice that would see LaRouche and
several of his supporters twice
indicted, and finally convicted, on a
series of trumped-up charges. One week
after George Bush's inauguration as
President, his most capable and
determined opponent, Lyndon LaRouche,
would be thrown into federal prison,
where he remains to this day. 
   But in the New Hampshire of
1979-80, LaRouche's attacks on Bush
brought into precise focus many aspects
of Bush's personality that voters found
profoundly distasteful. LaRouche's
attack sent out a shock wave, which, as
it advanced, detonated one turbulent
assault on Bush after the other.
   One who was caught up in the
turbulence was William Loeb, the
opinionated curmudgeon of Pride's
Crossing, Massachusetts who was the
publisher of the Manchester {Union
Leader}, the most important newspaper
in the state. Loeb had supported Reagan
in 1976 and was for him again in 1980.
Loeb might have dispersed his fire
against all of Reagan's Republican
rivals, including Howard Baker, Robert
Dole, Phil Crane, John Anderson, John
Connally and Bush. It was the LaRouche
campaign which demonstrated to Loeb
long before the Iowa caucuses that Bush
was the main rival to Reagan, and
therefore the principal target. As a
result, Loeb would launch a barrage of
slashing attacks on Bush.
   Loeb had assailed Ford as ``Gerry
the Jerk'' in 1976; his attacks on Sen.
Edmund Muskie reduced the latter to
tears during the 1972 primary. Loeb
began to play up the theme of Bush as a
liberal, as a candidate controlled by
the ``internationalist'' (or Kissinger)
wing of the GOP and the Wall Street
bankers, always soft on communism and
always ready to undermine liberty
through Big Government here at home. A
February editorial by Loeb reacted to
Bush's Iowa success with these warnings
of vote fraud: ``The Bush operation in
Iowa had all the smell of a CIA covert
operation.... Strange aspects of the
Iowa operation [included] a long, slow
count and then the computers broke down
at a very convenient point, with Bush
having a six per cent bulge over
Reagan.... Will the elite nominate
their man, or will we nominate
Reagan?''@s1@s1 
   For Loeb, the most damning
evidence was Bush's membership in the
Trilateral Commission, the creature of
David Rockefeller and the international
bankers. Carter and his administration
had been packed with Trilateral
members; there were indications that
the Establishment choice of Carter to
be the next U.S. President had been
made at a meeting of the Trilateral
Commission in Kyodo, Japan, where
Carter had been introduced by Gianni
Agnelli of Italy's FIAT motor company. 
   Loeb simplified all that: ``George
Bush is a Liberal'' was the title of
his editorial published the day before
the primary. Loeb flayed Bush as a
``spoiled little rich kid who has been
wet-nursed to succeed and now, packaged
by David Rockefeller's Trilateral
Commission, thinks he is entitled to
the White House as his latest toy.'' 
   Shortly before the election Loeb
ran a cartoon entitled ``Silk Stocking
Republicans,'' which showed Bush at a
cocktail party with a cigarette and
glass in hand. Bush and the other
participants, all male, were wearing
women's pantyhose.
   Paid political ads began to appear
in the {Union Leader} sponsored by
groups from all over the country, some
helped along by John Sears of the
Reagan campaign. One showed a drawing
of Bush juxtaposed with a Mr. Peanut
logo: ``The same people who gave you
Jimmy Carter want now to give you
George Bush,'' read the headline. The
text described a ``coalition of
liberals, multinational corporate
executives, big-city bankers, and
hungry power brokers'' led by David
Rockefeller, whose ``purpose is to
control the American government,
regardless of which political
party--Democrat or Republican--wins the
presidency this coming November! ...
The Trojan horse for this scheme,'' the
ad went on, ``is
Connecticut-Yankee-turned-Texas oilman
George Bush--the out-of-nowhere
Republican who openly admits he is
using the same `game-plan' developed
for Jimmy Carter in the 1976
presidential nomination campaign.'' The
ad went on to mention the Council on
Foreign Relations and the ``Rockefeller
money'' that was the lifeblood of
Bush's effort. 
   While campaigning, Bush was asked
once again about the money he received
from Nixon's 1970 Townhouse slush fund.
Bush's stock reply was that his friend
Leon Jaworski had cleared him: ``The
answer came back, clean, clean,
clean,'' said Bush. 
   By now the Reagan camp had caught
on that something important was
happening, something which could
benefit Reagan enormously. First
Reagan's crony Edwin Meese piped up an
oblique reference to the Trilateral
membership of some candidates,
including Bush: ``[A]ll these people
come out of an international economic
industrial organization with a pattern
of thinking on world affairs'' that led
to a ``softening on defense.'' That
played well, and Reagan decided he
would pick up the theme. On February 7,
1980, Reagan observed in a speech that
19 key members of the Carter
administration, including Carter, were
members of the Trilateral Commission.
According to Reagan, this influence had
indeed led to a ``softening on
defense'' because of the
Trilateraloids' belief that business
``should transcend, perhaps, the
national defense.''@s1@s2
   Bush realized that he was faced
with an ugly problem. He summarily
resigned from both the Trilateral
Commission and from the New York
Council on Foreign Relations. But his
situation in New Hampshire was
desperate. His cover had been largely
blown. 
   Now the real polls, the ones that
are generally not published, showed
Bush collapsing, and even media that
would normally have been rabidly
pro-Bush were obliged to distance
themselves from him in order to defend
their own ``credibility.''
   Bush was now running scared,
sufficiently so as to entertain the
prospect of a debate among candidates. 

Notes for Chapter XVII
 

   1.
 Albert Pike to Robert Toombs,
May 20, 1861 in {The War of the
Rebellion: A Compilation of the
Official Records of the Union and
Confederate Armies} (Washington: U.S.
Government Printing Office, 1881),
Series I, Vol. III, pp. 580-81. See
also James David Carter, {History of
the Supreme Council, 330 (Mother
Council of the World), Ancient and
Accepted Scottish Rite of Freemasonry
Southern Jurisdiction, U.S.A.,
1861-1891} (Washington: The Supreme
Council, 330, 1967), pp. 5-24, and
James David Carter, Ed., {The First
Century of Scottish Rite Masonry in
Texas: 1867-1967} (Texas Scottish Rite
Bodies, 1967), pp. 32-33, 42.
 
   2.
 Fredericka Meiners, {A History
of Rice University: The Institute
Years, 1907-1963} (Houston: Rice
University, 1982).
 
   3.
 Ronald Brownstein and Nina
Easton, {Reagan's Ruling Class} (New
York: Pantheon Books, 1983), p. 650.
 
   4.
 Joe Conason, ``Company Man,''
{Village Voice,} Oct. 1988.
 
   5.
 Bob Callahan, ``Agents for
Bush,'' {Covert Action Information
Bulletin,} No. 33 (Winter 1990), pp. 5
ff.
 
   6.
 Harry Hurt III, ``George Bush,
Plucky Lad,'' {Texas Monthly,} June
1983, p. 206.
 
   7.
 L. Wolfe, ``King George VII
Campaigns in New Hampshire,'' {New
Solidarity,} Jan. 8, 1980.
 
   8.
 Jeff Greenfield, {The Real
Campaign} (New York: Summit Books,
1982), pp. 36-37.
 
   9.
 See Lyndon LaRouche, ``Is
Republican George Bush a `Manchurian
Candidate'?'' issued by Citizens for
LaRouche, Manchester, New Hampshire,
Jan. 12, 1980.
 
   10.
 Quoted in Greenfield, {op.
cit.,} p. 44.
 
   11.
 Manchester {Union Leader,}
Feb. 24, 1980.
 
   12.
 Sidney Blumenthal, {The Rise
of the Counter-Establishment} (New
York: Perennial Library, 1988), pp.
82-83.
   
     
----         John Covici
          covici@ccs.covici.com