The Frogman Affair

Interesting book that came out after Gary Webb’s articles connecting the CIA to the crack epidemic of the /80’s called Whiteout: The CIA, Drugs and the Press. This book takes Webb’s findings one step further and shows that the CIA and Ronald Reagan’s attorney general, William French Smith knew about the drug for arms trade: http://books.google.ca/books?id=s5qIj_h_PtkC

The Frogman raid took place in San Francisco. The DEA caught Meneses’ men unloading 200 kilograms of cocaine. The DEA then went to the home of Julio Zavala one of Meneses’ lieutenants where they found and seized $36,800 cash.

"Hitz’s report stated 'At OGC’s (the CIA’s Office of General counsel) request the US Attorney General has agreed to return the money to Zavala.' The CIA’s Inspector General said the Agency wanted the money returned 'to protect an operational equity i.e. a Contra support group in which it (the CIA) had an operational interest.'" (page 390)
http://books.google.ca/books?id=s5qIj_h_PtkC

Ivan Gomez the CIA’s man in Costa Rica said he was "there to ensure the profits from the cocaine went to the Contras and not into someone’s pocket." (page 391)

In 1982 the CIA signed a memorandum with Ronald Reagan’s attorney general, William French Smith freeing the Agency from any requirement to report allegations of drug trafficking involving nonemployees. Who were described by Hiltz as paid and non-paid "assets, pilots who ferried supplies to the Contras as well as contra officials and others."

It appears the agreement with the Justice department was modified in 1986 after the flow of Congressional funds to the Contras had been restored to stop paying assets who were known to be involved in the drug trade. The agreement officially ended in 1995. (page 391)

"In March, 1998, the CIA Inspector General testified that there had existed a secret agreement between CIA and the Justice Department, wherein "during the years 1982 to 1995, CIA did not have to report the drug trafficking by its assets to the Justice Department." http://www.heart7.net/cia-doj-agreement2.html