LETTER TO DAVID GRIES FROM STEPHEN J. SOLARZ

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01390R000300440028-9
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 27, 2016
• Document Release Date: January 31, 2011
• Sequence Number: 28
• Publication Date: April 21, 1986
• Content Type: LETTER

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LEE H. HAMILTON, INDIANA
GUS YATRON, PENNSYLVANIA
STEPHEN J. SOLARZ. NEW YORK
DON BONKER, WASHINGTON
GERRY E. STUDDS. MASSACHUSETTS
DAN MICA, FLORIDA
MICHAEL D. BARNES, MARYLAND
HOWARD WOLPE, MICHIGAN
GEO. W. CROCKETT, JR., MICHIGAN
SAM GEJDENSON, CONNECTICUT
MERVYN M. DYMALLY, CALIFORNIA
TOM LANTOS, CALIFORNIA
PETER H. KOSTMAYER, PENNSYLVANIA
ROBERT G. TORRICELLI, NEW JERSEY
LAWRENCE J. SMITH, FLORIDA
HOWARD L BERMAN, CALIFORNIA
HARRY REID, NEVADA
MEL LEVINE, CALIFORNIA
EDWARD F. FEIGHAN. OHIO
TED WEISS. NEW YORK
GARY L ACKERMAN, NEw YORK
BUDDY MACKAY, FLORIDA
MORRIS K. UDALL, ARIZONA
ROBERT GARCIA,NEw YORK
WILLIAM S. BROOMFIELD, MICHIGAN
BENJAMIN A GILMAN, NEW YORK
ROBERT J. LAGOMARSINO, CALFORNIA
JIM LEACH, IOWA
TOBY ROTH, WISCONSIN
OLYMPIA J. SNOWE, MAINE
HENRY J. HYDE, ILLINOIS
GERALD B.H. SOLOMON, NEW YORK
DOUG BEREUTER, NEBRASKA
MARK D. SIWANOER, MICHIGAN
ED ZSCHAU, CALIFORNIA
ROBERT K. DORNAN, CALIFORNIA
CHRISTOPHER H. SMITH, NEW JERSEY
CONNIE MACK, FLORIDA
MICHAEL DEWINE, OHIO
DAN BURTON, INDIANA
JOHN MCCAIN, ARIZONA
JOHN J. BRADY, JR.
CHIEF OF STAFF
Mr. David Gries, Director
Office of Legislative Liaison
Central Intelligence Agency
Washington, DC
810-/c27
In a recent issue of The Nation Magazine, an open letter
addressed to me and signed by a Mr. Christopher Hitchens was published
concerning the so-called "Magdiwang Report" in the Philippines.
This report, a copy of which is enclosed, contains a number of
serious allegations about illegal campaign contributions from the
Marcos family and cronies to the US poiticians.
As Chairman of the Subcommittee on Asian and Pacific Affairs of
the House Foreign Affairs Committee, which has spent a considerable
amount of time investigating the hidden wealth of the Marcos family in
the United States, I believe that my Subcommittee has an obligation to
investigate these allegations in order to determine if any of the
hidden wealth was used to finance illegal campaign contributions in
the United States.
It is my understanding that the Central Intelligence Agency does
not now have any information on this report in its files. In order to
facilitiate the Subcommittee's investigation, I, therefore, request
that the Agency attempt, on a expedited basis, to obtain answers to
the following questions:
1. Does such a group-the Magdiwang 33-exist, or is this merely a
ficticious creation?
2. If this group does exist, who are its members? Are these
members in a position to reliably support the allegations that
they made in their report?
3. Have any members of this group met with the Salonga Coimiission,
and if so, have they provided any documentation to support their
alegations? If so, has the US Government obtained copies of such
documentation? If not, why not?
4. Have any members of the Magdiwang 33 either met or offered to
Congress of the United states
Committte on joreip affairs
.Ouse of Rtpreoematiueo
Washington, fit' iO51f
April 21, 1986
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meet with representatives of the US Government in order to discuss
these allegations? If so, what additional information or
documentation, if any, did they provide?
5. In the Agency's judgement, are some or all of the allegations
contained in this report credible? Why or why not?
6. Does the Agency have any information, not necessarily related
to the Magdiwang report, concerning contributions or other
attempts at influence peddling in the United States by Philippine
citiziens?
Your assistance in answering these questions is greatly
appreciated.
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The Nation.
MINORITY REPORT.
Representative Stephen Solarz
Chair, Asian and Pacific Affairs Subcommittee
1536 Longworth House Office Building
Washington, DC 20515
Dear Representative Solarz,
I realize that your desk must be swamped by the records
of the Marcos kleptocracy, but I thought you might want to
see a copy of the enclosed report, which has reached me
from reliable sources in Manila. It contains the findings of
the Magdiwang task force, a committee of expatriate Philip-
pine bankers working in Hong Kong and the United States.
Their "restricted" memorandum, which has been given to
Senator Jovito Salonga of the Philippine Commission for
Good Government, makes the following allegations:
? In March 1980 Ferdinand Marcos established a special
committee to investigate ways in which he might exploit a
Republican victory in the American Presidential elections.
The members of this committee were Imelda Marcos, Ben-
jamin Romualdez, Roberto Benedicto, Geronimo Velasco,
Roberto Sabido (since deceased), Lucio Tan, Rolando
Gapud and Oscar Carifto. They were instn to review
U.S. regulations, reinforce personal friendship with Ronald
and Nancy Reagan and target salient American interests and
personalities.
? Using resources from tobacco, gambling, banking, pe-
troleum and construction interests under Marcos's control,
the team was mandated to give $7 million through third
parties to the 1980 Reagan-Bush campaign and another
$10 million to selected candidates in the 1982 midterm
elections.
? Imelda Marcos and Romualdez withdrew $20 mil-
lion from three New York banks in September 1984 for the
specific purpose of assisting political action committees
working for the re-election of Reagan and Bush. A total of
$50 million was earmarked for that objective.
? In one specific instance, Vicente Chuidian of the Silicon
Valley corporation Asian Reliability was to be asked to con-
tribute between $500,000 and $1 million to the Reagan-Bush
campaign in California. An intermediary is named here, but
I don't think it fair to identify him beyond saying that he is a
former senior White House official.
The Magdiwang task force also presents evidence about
the purchase of more generalized political influence. It
alleges, for example, that large contracts were awarded to
the Bechtel Corporation by Marcos crony Roman Cruz Jr.,
with the object of "widening the avenues of contact between
Marcos and former Bechtel executives George Shultz and
Caspar Weinberger." It further alleges that Benedicto,
representing a Manila Bay casino, sought the counsel of
Senator Paul Laxalt in connection with the intended acquisi-
tion of a Las Vegas operation.
Benedicto, Gapud and Cariho were, according to the
memorandum, instructed to find ways in which Marcos-
controlled banks could place credits and deposits in the First
April 5, 1986
CHRISTOPHER HITCHENS
National City Bank of Houston and the Commercial Bank
Company of Midland, Texas, now known as Texas Ameri-
can Bank, thought by Marcos to enjoy close links with Vice
President Bush. In his capacity as president of the Security
Bank and Trust Company in the Philippines, Gapud was
ordered to find ways in which "sure" profits could be made
for the blind trusts of Reagan and Bush. The report names
the lawyer and investment managers, respectively, of the
President and the Vice President. These are, in the case of
Reagan, Roy Miller of Gibson, Dunn and Crutcher (a Los
Angeles law firm) and, in the case of Bush, W.S. Farish and
Co. of Houston.
Other targets for "sweetheart deals" were Interpublic, a
firm with close links to Senator Laxalt; Kissinger Associates
of New York; Michael Deaver and Associates; William Brock
Jr.; Judge William Clark; Donald Regan and Ed Rollins.
I could be more specific. But I do not feel justified in
questioning the good name of these distinguished public ser-
vants, all of whom in any case employ lawyers who could
buy The Nation and throw it away. At the very least,
however, this document merits the attention of your com-
mittee. We know that the Marcos conjugal despotism had
acquired vast holdings in the United States-vaster than
even you had suspected. We also know that the Marcoses set
great store by the cultivation of American friends. Is it so
improbable that they sought to cement this friendship in the
only way they knew how?
I may be accused of having a suspicious mind, but was
there not something fulsome in Bush's 1981 salute to Mar-
cos? Did he have to say, on that Manila trip, that he
"loved" the man and his attachment to democracy? Would
a few free world platitudes not have been enough? Again,
was it absolutely necessary for Ronald and Nancy to invite
Ferdinand and Imelda on a full-dress state visit-their first
in many years? I merely ask. And was it anything more than
stupidity that led the President to defend Marcos against
the charge of vote-rigging, telling The Washington Post on
February 10, "I'm sure even elections in our own coun-
try-there are some evidences of fraud in places and areas."
Talk about blaming America first.
I think that the contents of the Magdiwang memorandum
provide a prima facie case for a public hearing, and I can
assure you that many well-informed Filipinos would wel-
come the chance to testify. Even without these latest allega-
tions, we have sufficient cause for concern. A whole net-
work of unaccountable consultants, lobbyists and political
action committees is spread over Washington, providing
privileged access to those with money. It would be a dull-
witted foreign despot who did not seek to take advantage of
this short circuit in the democratic process, and we have the
example of the South Korean penetration fresh in our mem-
ories. There will, of course, always be those who think that
capitalism and democracy are the same thing. But let me not
wander from the point at issue.
If I can assist you further, please do not hesitate to let me
know.
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 IN ORDER TO PAVE THE NAY FOR A FAVORABLE TREATMENT OF HIS REG3MEI
in THE EVENT OF A REPUBLICAN VICTORY. FERDZNAND E.'NARcos. in MARCH OF
1980 AND THEREAFTER INSTRUCTED Nis AGENTS LED By IM["A MARCOSI
BENJAMIN ROMYALBEz. ROBERTO RENE311CTOt GERONino VELAlCO, ROBERTO SRBlao
(woe vactaxES). Lucia TAN. RonALao GAPuD AND OSCAR CARiNO:
To REVIEW PEi:T3!1E!!? U.S. RL(iU:.AT1GNS. -
To REINFORCE His PERSONALI FRZENDSHZP NITH Rowe. AND NANCY REAGAN.
TO SYSTEMATICALLY TARGET AND CULTIVATE KEY V.S. POLZTCAL INTERESTS
? .
AND PEr ONALTIT3ES.
RESOURCES PROM_TOBACCOP GANBL3NG? BANKING$ PETROLEUM AND
CON$TRUCTZON ZNTE.RES7S UNDER His, CONTROL WERE TO BE MADE AVAILABLE FOR:
A. SUBSTANTIAL CONTRIBUTIONS TO THE REPUBLICAN PARTYI THE
CONNITTTEE To ELECT REAGAN AND BUSH#AND CERTAIN POLITICAL ACTION
COMMITTEES (PACE).
$7 MILLION WAS TO BE CONTRIBUTED TO-THE REAGAN-BUSH CAMPAIGN ZN
fi0 MILLION HAS TO BE CONTRIBUTED TO VARIOUS CANDZ)ATES 1N'THE 1982
DFF-YEAR U.S. ELECTIONS. ^T'
/,?~ $50 MILLION WAS TO BE a1STRZBUTED TO THE VAR30US COMMITTEES AND
GROUPS CREATED TO HELP REAGAN -AND BUSH. IMELSA MRRCOS AND BENJAMIN
ROuALBEz WITHDREW $20 MILLION FROM TMPEL.J1EM YORK XRNKS IN SEPTE11S6.1t OF
1984 FOR THIS PURPOSE.
VICENTE CWUZIIRN OF ASIAN REL1ZILITT WAS INSTRUCTED TO CONTRIBUTE
$60,000 TO 11 MZL.L330N 70 THE REAGAN-BUSH CAMPOIGN IN CALIF ORN3R$
PROBAB:Y,TNROUGM RICHARD ALLEN.
3. THE ENGAGEMENT OF PROFESSIONAL SERVICES OF LOXXVISTSs
CONSULTANTS ANB LAN FIRMS KNOWN TO BE CLOSE TO THE REPUBLICANS AND KEY
REAGAN OFFICIALS.
MARCOS SON-IN-LAN GREGGY ARANETA AND-DEPUTY MIN FOR HUMAN
SETTLEMENTS JOSE BENITEZ ENGAGED THE SERVICES OF BLACK. HANIFORD, STONE
AND KELLY FOR 19509000 70 iMPROVE'THE IMAGE OF MARCOS ZN THE U.S.
':HR*LES )LACK MRS POLITICAL DIRECTOR WORKING FOR PAUL LAxALT IN THE
1984 REAGAN-BusH CAMPAIGN.
HERDIS ENGAGED THE SERVICES OF NON-CIR DIRECTOR WILLIAM CASEY FROM
1976 TO 1981.
ROBERTo )ENEDICTO9 REPRESENTING THE MANILA BAY CASINO/ SOUGHT THE
COUNSEL OF PAUL LAXALT IN CONNECTION WITH THE INTENDED-PURCHASE OF R
LAS VEGAS CASINO OPERATION FOR FILIPINO INTERESTS.
-0-
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RESTRICTED
ORIGINAL COPY FOR:
MINISTER JOVITO'R. SALONGA?_
CHAIRNANI PNILIPPiNE Conn 1&SIDNpOR~GOoI.OOVERNMRN?.
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-lhN.GERS FOR MANILA HOTEL CORP. AND OTHER is E DA P OJLCTS 1'N O TV
NILEN THE AVENUES OF CONTACT SLINEEN MARCOS AND FORMER BECHTEL
EXECUTIVES GEORGE SHULT2 AND CASPAR WEZNJERGER.
Lucia TAN OF FORTUNE TOBACCO WAS TO COURSE His IMPORTAiiONS OF
VIRGINIA LEAF THROUGH U.S. TOBACCO INTERESTS H17H CLOSE LINKS 'FU KEY
PEFURLICRN SOLONS.
C. THE CHANNELING OF DEPO51T51 THE AWARDING OF LUCRA71VE CON1RkCTSI
THE ORIGINATION AM FINANCING OF DEALS DESIGNED TO BENEFIT TARGETED
U.S. CORPORATIONS# EL3ND TRUSTS AND -:EY PERSONALITIES.
RODERTO BENEDICTO. ROLRNDO GAPUD AND OSCAR CARING WERE TO FIND WAYS
EY WHICH REGIME-CONTROLLED BANKS WERE TO PLACE DEPOSITS AND INCREASE
DOCUMENTARY CREDITS TO FIRST NAUIONA BANE: OF HOUSTON AND COMMERICAL
BARK CO. OF MIDLAND, TEXRSI BOTH SANK& WITH CLOSE LISPS YO VICE
PRESIDENT GEORGE BUSH.
ENERGY MINISTER GERONIMO UELRSCOP THROUGH PUUC
APHILiPF3NE NhTIONAL OIL Co, AND 375 FOREIGN SUSEIVIRF:lE$
WAS TO STRIKE A XUSINESS RELR7IONSHIF' WITH OVEREEV OIL DEVELOPMENT
CORP.. ZAPATA PETROLEUtI CORP. AND ZAPATA OFFSHORE Co.. WHERE GEORGE
BUSH HELD #UTSTANTIAL INTERESTS. SECURITY BIFINK PRESIDENT ROLANDO CFiF'UD
WAS TO ORIGINATE AND FINANCE DEALS DESIGNED TO -1A-:E '"SURE'' PROFITS
FOR THE BLIND TRUSTS OF RONALD REAGAN AN GEORGE BUSH.
THE 445WEETHEART DEALS" WERE THEN TO It OFFERED TO REkGRNIfi
INVESTMENT MANRGER9 MR. ROT MILLER OF GITLON. DUNNI CRUTCHERI A Los
fnEELES LAW FZR-1. AND W.S. PARISH AND CO. OF HOUSTONI Buss's TRUS7EEE.
THE OTHER TARGETS OF THE MARCOS REGIME INCLUDED INTERPUILICI WITH
(FA.40HP OSE LINKS TO PAUL LRXRLT! KISSINGER AND fi5SOCZRTESI MICHAEL DENVER
ASSOCIATES, WILLIAM BROC-: JR., JUDGE WILLIAM CLARK;I DONALD REGAN
D E'>s ROLLINS OF CALIFORNIA.
WHILE THE ATTEMPTS A71 OR EVEN A CONSUMMATION OF BUSINESS RELk7:ONS
MAY NOT It VIOLATIVE OF U.S. LkHI THE SCALE! SCOPE AND DEPTH OF THE
LINKAGES BETWEEN THE MARCOS REGIME AND KEY U.S. OFFiCiALS URGENTLY
REQUIRE THE It1HEDIATE ATTENTION OF YOUR HONORALLE COMMISSION.
WITH THE CAPTURE OF THE MARCOS' FILES IN THE PRESIDENTIAL STUDY
ROOM. WE SHOULD SE ABLE 70 COMPLETE THE DOCUMENTATION OF THESE VARIOUS
RELATIONS. ARMED WITH THIS FRAMEWORK. THE HONORAI:LE COMMIf1SION iikl' THEN
CHART ITS RPPROF-RZATE STRATEGY AND TACTICS ViS A VIE THE fRUINO
GOVERNt1EN7'5 INITIATIVES TO RETRIEVE THE MARCOS WEALTH LOCATED IN THE
U. S.
THROUGH OUR COLLECTIVE EFFORTSF WE HOPE TO DEMONSTRATE 10 OUR
PEOPLE AND INDEED TO THE INTERNATIONAL COMt1UNITI THAT THE FRO MARCOS
LEAti1NGSI THE ATTITUDES AND STRTEMTNS OF RONALD REAGAN AND HIS -:ET
AIIEE BEFORE, DURING AND EVEN AFTER THE FEIRuRR't CR15ES1 COULD HAVE
PEEN PROMPTED, PERHAPS. 1'1 MORE THAN JUST A SIMPLE "CONCERII FOR A
PERSONAL FRIEND AND RELAIBLE ALL"YI' OR EVEN THE H1SH TO AVOID ELOOI/SHED.
THE PUI;LIC EXPOSURE OF THE MRRCOSES STYLE OF DIPLOMACY -- PERSONAL.
PRIIGMATICI OPPORTUNISTIC, VP'-ED UP IY THEIR COSMIC WEALTH -- COULD
IDEAL THEM AND THEIR NAIVE iER1CAN FRIENDS THE FINAL SLOW.
AT ?Hr EARLIEST POSS3i;LE TIME! THE U.S. MUST BE MADE TO REALIZE
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RT Ti,s
7443 P. fT F'OSfIZLE TIMES THE U.S. MUST at "pilot TO REhLIZE
+ , THE PHILLIP'P'INE CONJUGAL DICTATORSHIP. HAS RETURNED TO AMEBIC
i!C'RTNSS NOT AS STATE VISITORS, ZUT RATHER TO CLAIM ITS FINAL VICTIMS.
RONALD REAGAN AND HIS CRONIES MOULD SOON REALIZE THAT THE-' WOULD
1HD7 It RILE TO EZCAF'[ THE DEADLY EMI:RACE OF FERDINAND AND IMELLk HkRCOS.
END
MARCH i, i986,
MMGDIlAtIG 83.
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