- video encodings still in process -

Terry Reed, a businessman and long-time CIA asset. This video chronicles his interactions with intelligence officials from his early years as a serviceman in Vietnam but focuses on his role in the contra training operation and supply line out of Mena, AK and his involvement in establishing a CIA front corporation in Mexico to serve as a conduit for contra supplies.Research Question/Hypothesis: They style of Reed’s narrative prevented a clear research question or hypothesis, however, his story feeds into the hypothesis shared by many scholars that the contra supply apparatus organized by the CIA was fused with pipelines of narcotics into the US.Data: Compromised is largely a testimonial of the experiences of Terry Reed and he has been sued for slander as a result of the publication of his book. However, many independent investigations have corroborated his allegations. The majority of information included in the abstract is verifiable.Findings:IBM created the computer code named 360E, predecessor to the AWAC system, with the intention of cutting off the Viet Cong supply route on the Ho Chi Minh trail that extended 400 miles through N. Vietnam, Laos, Cambodia and S. Vietnam. The 360E was housed in NE Thailand at the airborne command post EC121R and monitored people moving along the trail by sensors. When the sensor was activated it would activate a plane to fly by and bomb the area. By 1971 2.2 million tons of bombs had been dropped in Laos costing taxpayers $10 billion per year. (p.16-7)The CIA paid Souvanna Phouma a fee for bombing rights in Laos. (p.18)Task Force Alpha (TFA), a Special Forces unit in Vietnam, supplied information to the Pentagon and provided Air America pilots with reconnaissance photos needed to locate remote airfields. (p.19)Terry Reed was a successful businessman in technology manufacturing and an experienced pilot. He worked with Northwestern Industries and Machine Tool Industry. (p.28)Between 1982-4 Oliver North worked on various projects for the Federal Emergency Manpower Agency (FEMA). There is not much information on the nature of the projects Oliver North was involved with. (p.42)The CIA arranged an insurance scheme through the use of loss brokering for the procurement of hard assets, such as airplanes, for the contra supply operation. An asset is sold from one insurance company to another. The loss of the asset to the insurance company is offset through loss reserve selling or the sale of future claims on the item to another insurance company. This gives the ‘losing’ insurance company immediate income from the sale and the unused claim money on the item. The buying insurance company is provided with an instant tax write-off through the tax-exempt cash ‘set aside’ requirements. The buying insurance company is typically a CIA front. The loss brokering scheme is commonly used in procurement operations for covert military activity. (p.43)National Endowment for the Preservation of Liberty (NEPL), controlled by Carl ‘Spitz’ Channel, raised more than $10 million in private contributions for the contras. (p.44)The Iver Johnson Arms Inc. was sold to the CIA and transferred from NJ to AK where it manufactured weapons components for the contras. Due to scrutiny aroused from a contract previously held by Iver Johnson with the US Navy, Brodix Manufacturer, a Mena based corporation, was hired to cast the weapons parts manufactured by Iver Johnson. (p.53-4)The CIA was extremely active in AK in the mid 1980s. (p.54)Reed, Kerr, and Associates was an automation consulting and marketing firm started in AK by Reed. (p.60)Barry Seal, a long-time CIA asset, used the Rich Mountain Aviation at the Inter-Mountain Regional Airport as a base of operations. (p.62)Nella, AK, a secluded spot just outside of Mena, was the site picked by the CIA to train contra pilots. Terry Reed was hired to work as an instructor. (p.61)The CIA ran 2 covert operations out of Mena: the training of contra pilots in flight and aerial delivery techniques and the transportation of arms and munitions from AK to Central America. These operations were codenamed operation “centaur rose” and “jade bridge”. (p.64)Aki Sawahata served as Terry Reed’s contact for the CIA. Sawahata’s company Overseas International (OSI) was incorporated in 1984 and specialized in exporting bulky commodities to Japan. (p.68-9)Many of the planes used for the training program at Rich Mountain Aviation were stolen. The aircraft laundering system was used. The N, or identification, number of a Government aircraft was given to a stolen aircraft of the same make and model to disguise its identity. (p.86)Luis Posada Carriles, code-named Ramon Medina, worked as the camp commander of the flight school in Nella, AK. He was later transferred to El Salvador to manage the day-to-day operations at the Ilopongo air force base. (p.94)Bill Duncan, an IRS agent, conducted an investigation into CIA deposits in area banks. Rich Mountain Aviation was one of the targets of his investigation. (p.105)Barges on the AK river were used to transport arms and drugs into and out of AK. Safe transit was insured by the US Army Corps Engineers who controlled the river. (p.111)The Army and National Guard donated weapons parts to the contras. (p.111)The CIA recruits potential assets for operations by giving them an initial tip off and instructing them to place a ‘looking for employment’ add in the classifieds of a local paper. If the CIA has a continued interest they will then contact the person. Terry Reed was instructed to follow this procedure for involvement in a cut out in Florida. Classified ads are a part of the communication system of the CIA. (p.118)AK charged the CIA 10% of its profits in exchange for using the state for covert operations such as airplane modifications, contra training camps, and arms and drug shipments. (p.125-6)A diversionary tactic called ‘piggy-backing’ was used to mask planes smuggling drugs or money into AK. 3 planes would fly in a staggered formation 20 feet below each other so that it would appear to FAA traffic control as 1 plane. The shipment is then dropped and the coordinates are recorded by the 3rd plane for the pickup. This smuggling method has been described as foolproof. (131-2)Razorback Metal Processors was an AK firm that handled metal plater for the weapons components produced by Iver Johnson. Choate Machine and Tool handled plastic injection molding for Razorback. Many of the parts and components produced were sent to the National Guard to return material appropriated for the contra war effort. (p.141)The AK Development and Finance Authority (ADFA) was formed by Bill Clinton to act as a bonding firm for the state to finance industrial expansion. Its mission was to lend money at preferred rates either to local companies looking to expand or to recruit out of state manufacturing firms to relocate to AK. ADFA replaced the AK Industrial Development Commission (AIDC), a task force appointed by the Governor to attract outside industry through negotiation with private financial institutes. It is alleged that the 10% profit received from the CIA financed the ADFA. (p.142-4)Stansfield Turner and William Casey were both proponents of penetrating the business world with CIA assets. Stansfield Turner believed in training CIA recruits and then sending them into the international business community while William Casey believed that accurate information could only be collected by assets legitimately connected to the business world. (p.162)Terry Reed was hired to set up a tool-manufacturing firm in Mexico to front for the CIA. Reed’s start-up plan was to penetrate the existing machine tool operation through a stock purchase or merger to avoid official scrutiny. Reed used his business experience to develop a supply pipeline that stretched from the U.S. and Europe through Asia and Mexico. Reed later discovered that the warehouse established in his name was being used to funnel cocaine. (p.181-94)Barry Seal, a long time CIA asset involved in numerous gun and drug transfers and responsible for the photographs of Sandinista leaders with the Medellin cartel that spearheaded the ‘narco-terrorist’ conspiracy, confided in Reed that he had concrete evidence that the Bush Boys were involved with the cocaine trade. Seal told Reed he had, “names, dates, places…even got some tape recordings. Fuck, I even got surveillance videos catchin’ the Bush boys red-handed. I consider this stuff my insurance policy.” Seal was later murdered in Florida while testifying in a case for the DEA. (p.213)Gomiya, a Japanese corporation that specialized in exporting restricted computer technology to China, was recruited as an investor in Machinery International, a holding company incorporated in the U.S. by Reed for the sale of stock in hi Mexican Maquinaria International SA stock. Frank Fujikawa, director of Gomiya USA and responsible for many illegal trade links, entered into a partnership with Reed. Machinery International was owned 55% by the CIA front Southern Air Transport (SAT), 25% by Reed, 10% by the Hungarian firm Cordtec, and 10% by the Japanese. (p.219)The predecessor to ADFA, AIDC, referred outside investors to the investment banking firms of Dan Lasaster, Lasaster & Co. Hillary Clinton’s Rose Law Firm handled the legal work of bond counseling. (p.230-2)The Vice President of the Union Bank in Mena, AK conducted an independent investigation of the bank records and found evidence of money-laundering transactions. This evidence was not allowed to be submitted to a Grand Jury. Offshore money was laundered through Arkansas banks during CIA involvement in the region. (p. 239)Jackson T. Stephens, chairman of the bank Stephens & Co., had connections to the First American Bank and helped BCCI establish a branch in the U.S. (p.245)The Dutch Sandwich is a legal tax avoidance maneuver where dirty funds in an offshore account are used as a collateral to back loans. The interest paid on the loans is a method of generating clean money from dirty money. (p.245)Operation Sea Spray was a joint CIA-Army operation to mask covert flights entering and exiting US airspace. Sea Spray satellites monitoring US coastal airspace were blinded by the Defense Department who selectively turned off their detection ability to prevent a flight from triggering a response. (p.255)William Cooper, a long time CIA asset and colleague of Reed’s at the Nella flight school, was the pilot of the plane that was shot down over Nicaragua and sparked the Iran-Contra affair. There were many odd features to the plane crash. The standard operating procedure for covert flights is that planes are stripped of all data plates, the planes serial # is removed, and pilots and crew carry no identification. Cooper’s plane was identified by its serial number and his I.D. was revealed to the US media. (p.295)Operation Z was codename for a weapons plant under construction at the Morelia Airport in Mexico. (p.352)