Since the seventeenth century opium poppies have been grown in the so-called Golden Crescent, where the highlands of Afghanistan, Pakistan and Iran all converge. For nearly four centuries this was an internal market. By the 1950s very little opium was produced in either Afghanistan or Pakistan, with perhaps 2,500 acres in these two countries under cultivation. The fertile growing fields of Afghanistan’s Helmand Valley, by the 1980s under intensive opium poppy cultivation, were covered with vineyards, wheat fields and cotton plantations.
In Iran, the situation was markedly different in the early 1950s. The country, dominated by British and US oil companies and intelligence agencies, was producing 600 tons of opium a year and had 1.3 million opium addicts, second only to China where, at the same moment, the western opium imperialists still held sway. Then, in 1953, Mohammed Mossadegh, Iran’s nationalist equivalent of China’s Sun Yat-sen, won elections and immediately moved to suppress the opium trade. Within a few weeks, US Secretary of State John Foster Dulles was calling Mossadegh a madman, and Dulles’s brother Allen, head of the CIA, dispatched Kermit Roosevelt to organize a coup against him. In August 1953 Mossadegh was overthrown, the Shah was installed by the CIA, and the oil and opium fields of Iran were once again in friendly hands. Production continued unabated until the assumption of power in 1979 of the Ayatollah Khomeini, at which point Iran had a very serious opium problem in terms of the addiction of its own population. Unlike the mujahedin chieftains, the Ayatollah was a strict constructionist of Islamic law on the matter of intoxicants: addicts and dealers faced the death penalty. Opium production in Iran dropped drastically.
In Afghanistan in the 1950s and 1960s, the relatively sparse opium trade was controlled by the royal family, headed by King Mohammed Zahir, The large feudal estates all had their opium fields, primarily to feed domestic consumption of the drug. In April 1978 a populist coup overthrew the regime of Mohammed Daoud, who had formed an alliance with the Shah of Iran. The Shah had shoveled money in Daoud’s direction – $2 billion on one report – and the Iranian secret police, the Savak, were imported to train Daoud’s internal security force. The new Afghan government was led by Noor Mohammed Taraki. The Taraki administration moved toward land reform, hence an attack on the opium-growing feudal estates. Taraki went to the UN, where he requested and received loans for crop substitution for the poppy fields.
Taraki also pressed hard against opium production in the border areas held by fundamentalists, since the latter were using opium revenues to finance attacks on the Afghan central government, which they regarded as an unwholesome incarnation of modernity that allowed women to go to school and outlawed arranged marriages and the bride price.
By the spring of 1979 the character of Dan Rather’s heroes, the mujahedin, was also beginning to emerge. The Washington Post reported that the mujahedin liked to “torture their victims by first cutting off their noses, ears and genitals, then removing one slice of skin after another.” Over that year the mujahedin evinced particular animosity toward westerners, killing six West Germans and a Canadian tourist and severely beating a US military attaché. It’s also ironic that in that year the mujahedin were getting money not only from the CIA but from Libya’s Moammar Qaddaffi, who sent $250,000 in their direction.
In the summer of 1979, over six months before the Soviets moved in, the US State Department produced a memorandum making clear how it saw the stakes, no matter how modern-minded Taraki might be, or how feudal the mujahedin: “The United States’ larger interest … would be served by the demise of the Taraki-Amin regime, despite whatever setbacks this might mean for future social and economic reforms in Afghanistan.” The report continued, “The overthrow of the DRA [Democratic Republic of Afghanistan] would show the rest of the world, particularly the Third World, that the Soviets’ view of the socialist course of history as being inevitable is not accurate.”
Hard pressed by conservative forces in Afghanistan, Taraki appealed to the Soviets for help, which they declined to furnish on the grounds that this was exactly what their mutual enemies were waiting for.
In September 1979 Taraki was killed in a coup organized by Afghan military officers. Hafizullah Amin was installed as president. He had impeccable western credentials, having been to Columbia University in New York and the University of Wisconsin. Amin had served as the president of the Afghan Students Association, which had been funded by the Asia Foundation, a CIA pass-through group, or front. After the coup Amin began meeting regularly with US Embassy officials at a time when the US was arming Islamic rebels in Pakistan. Fearing a fundamentalist, US-backed regime pressing against its own border, the Soviet Union invaded Afghanistan in force on December 27, 1979.
Then began the Carter-initiated CIA buildup that so worried White House drug expert David Musto. In a replication of what happened following the CIA-backed coup in Iran, the feudal estates were soon back in opium production and the crop-substitution program ended.
Because Pakistan had a nuclear program, the US had a foreign aid ban on the country. This was soon lifted it as the waging of a proxy war in Afghanistan became prime policy. In fairly short order, without any discernible slowdown in its nuclear program, Pakistan became the third largest recipient of US aid worldwide, right behind Israel and Egypt. Arms poured into Karachi from the US and were shipped up to Peshawar by the National Logistics Cell, a military unit controlled by Pakistan’s secret police, the ISI. From Peshawar those guns that weren’t simply sold to any and all customers (the Iranians got 16 Stinger missiles, one of which was used against a US helicopter in the Gulf) were divvied out by the ISI to the Afghan factions.
Though the US press, Dan Rather to the fore, portrayed the mujahedin as a unified force of freedom fighters, the fact (unsurprising to anyone with an inkling of Afghan history) was that the mujahedin consisted of at least seven warring factions, all battling for territory and control of the opium trade. The ISI gave the bulk of the arms – at one count 60 percent – to a particularly fanatical fundamentalist and woman-hater Gulbuddin Hekmatyar, who made his public debut at the University of Kabul by killing a leftist student. In 1972 Hekmatyar fled to Pakistan, where he became an agent of the ISI. He urged his followers to throw acid in the faces of women not wearing the veil, kidnapped rival leaders, and built up his CIA-furnished arsenal against the day the Soviets would leave and the war for the mastery of Afghanistan would truly break out.
Using his weapons to get control of the opium fields, Hekmatyar and his men would urge the peasants, at gun point, to increase production. They would collect the raw opium and bring it back to Hekmatyar’s six heroin factories in the town of Koh-i-Soltan. One of Hekmatyar’s chief rivals in the mujahedin, Mullah Nassim, controlled the opium poppy fields in the Helmand Valley, producing 260 tons of opium a year. His brother, Mohammed Rasul, defended this agricultural enterprise by stating, “We must grow and sell opium to fight our holy war against the Russian nonbelievers.” Despite this well-calculated pronouncement, they spent almost all their time fighting their fellow-believers, using the weapons sent them by the CIA to try to win the advantage in these internecine struggles. In 1989 Hekmatyar launched an assault against Nassim, attempting to take control of the Helmand Valley. Nassim fought him off, but a few months later Hekmatyar successfully engineered Nassim’s assassination when he was holding the post of deputy defense minister in the provisional post-Soviet Afghan government. Hekmatyar now controlled opium growing in the Helmand Valley.
American DEA agents were fully apprised of the drug running of the mujahedin in concert with Pakistani intelligence and military leaders. In 1983 the DEA’s congressional liaison, David Melocik, told a congressional committee, “You can say the rebels make their money off the sale of opium. There’s no doubt about it. These rebels keep their cause going through the sale of opium.” But talk about “the cause” depending on drug sales was nonsense at that particular moment. The CIA was paying for everything regardless. The opium revenues were ending up in offshore accounts in th
e Habib Bank, one of Pakistan’s largest, and in the accounts of BCCI, founded by Agha Hasan Abedi, who began his banking career at Habib. The CIA was simultaneously using BCCI for its own secret transactions.
The DEA had evidence of over forty heroin syndicates operating in Pakistan in the mid-1980s during the Afghan war, and there was evidence of more than 200 heroin labs operating in northwest Pakistan. Even though Islamabad houses one of the largest DEA offices in Asia, no action was ever taken by the DEA agents against any of these operations. An Interpol officer told the journalist Lawrence Lifschultz, “It is very strange that the Americans, with the size of their resources, and political power they possess in Pakistan, have failed to break a single case. The explanation cannot be found in a lack of adequate police work. They have had some excellent men working in Pakistan.” But working in the same offices as those DEA agents were five CIA officers who, so one of the DEA agents later told the Washington Post, ordered them to pull back their operations in Afghanistan and Pakistan for the duration of the war.
Those DEA agents were well aware of the drug-tainted profile of a firm the CIA was using to funnel cash to the mujahedin, namely Shakarchi Trading Company. This Lebanese-owned company had been the subject of a long-running DEA investigation into money laundering. One of Shakarchi’s chief clients was Yasir Musullulu, who had once been nabbed attempting to deliver an 8.5-ton shipment of Afghan opium to members of the Gambino crime syndicate in New York City. A DEA memo noted that Shakarchi mingled “the currency of heroin, morphine base, and hashish traffickers with that of jewelers buying gold on the black market and Middle Eastern arms traffickers.”
In May 1984 Vice President George Bush journeyed to Pakistan to confer with General Zia al Huq and other ranking members of the Pakistani regime. At the time, Bush was the head of President Reagan’s National Narcotics Border Interdiction System. In this latter function, one of Bush’s first moves was to expand the role of the CIA in drug operations. He gave the Agency primary responsibility in the use of, and control over, drug informants. The operational head of this task force was retired Admiral Daniel J. Murphy. Murphy pushed for access to intelligence on drug syndicates but complained that the CIA was forever dragging its feet. “I didn’t win,” he said later to the New York Times. “I didn’t get as much effective participation from the CIA as I wanted.” Another member of the task force put it more bluntly, “The CIA could be of value, but you need a change of values and attitude. I don’t know of a single thing they’ve ever given us that was useful.”
Bush certainly knew well that Pakistan had become the source for most of the high-grade heroin entering Western Europe and the United States and that the generals with whom he was consorting were deeply involved in the drug trade. But the vice president, who proclaimed later that “I will never bargain with drug dealers on US or foreign soil,” used his journey to Pakistan to praise the Zia regime for its unflinching support for the War on Drugs. (Amid such rhetorical excursions he did find time, it has to be said, to extract from Zia a contract to buy $40 million worth of gas turbines made by the General Electric Co.)
Predictably, through the 1980s the Reagan and Bush administrations went to great lengths to pin the blame for the upswing in Pakistani heroin production on the Soviet generals in Kabul. “The regime maintains an absolute indifference to any measures to control poppy,” Reagan’s attorney general Edwin Meese declared during a visit to Islamabad in March 1986. “We strongly believe that there is actually encouragement, at least tacitly, over growing opium poppy.”
Meese knew better. His own Justice Department had been tracking the import of drugs from Pakistan since at least 1982 and was well aware that the trade was controlled by Afghan rebels and the Pakistani military. A few months after Meese’s speech in Pakistan, the US Customs Office nabbed a Pakistani man named Abdul Wali as he tried to unload more than a ton of hash and a smaller amount of heroin into the United States at Port Newark, New Jersey. The Justice Department informed the press that Wali headed a 50,000-member organization in northwest Pakistan – but Deputy Attorney General Claudia Flynn refused to reveal the group’s identity. Another federal official told the Associated Press that Wali was a top leader of the mujahedin.
It was also known to US officials that people on intimate terms with President Zia were making fortunes in the opium trade. The word “fortune” here is no exaggeration, since one such Zia associate had $3 billion in his BCCI accounts. In 1983, a year before George Bush’s visit to Pakistan, one of President Zia’s doctors, a Japanese herbalist named Hisayoshi Maruyama was arrested in Amsterdam packing 17.5 kilos of high-grade heroin manufactured in Pakistan out of Afghan opium. At the time of his arrest he was disguised as a boy scout.
Interrogated by DEA agents after his arrest, Maruyama said that he was just a courier for Mirza Iqbal Baig, a man whom Pakistani customs agents described as “the most active dope dealer in the country.” Baig was on close terms with the Zia family and other ranking officials in the government. He had twice been a target of the DEA, whose agents were told not to pursue investigations of him because of his ties to the Zia government. A top Pakistani lawyer, Said Sani Ahmed, told the BBC that this was standard procedure in Pakistan: “We may have evidence against a particular individual, but still our law-enforcing agencies cannot lay hands on such people, because they are forbidden to act by their superiors. The real culprits have enough money and resources. Frankly, they are enjoying some sort of immunity.”
Baig was one of the tycoons of the Pakistani city of Lahore, owning cinemas, shopping centers, factories and a textile mill. He wasn’t indicted on drug charges until 1992, after the fall of the Zia regime, when a US federal court in Brooklyn indicted him for heroin trafficking. The US finally exerted enough pressure on Pakistan to have him arrested in 1993; as of the spring of 1998 he was in prison in Pakistan.
One of Baig’s partners (as described in Newsweek) in his drug business was Haji Ayub Afridi, a close ally of President Zia, who had served in the Pakistani General Assembly. Afridi lives thirty-five miles outside Peshawar in a large compound sealed off by 20-foot-high walls topped with concertina-wire and with defenses including an anti-aircraft battery and a private army of tribesmen. Afridi was said to be in charge of purchasing raw opium from the Afghan drug lords, while Baig looked after logistics and shipping to Europe and the United States. In 1993 Afridi was alleged to have put out a contract on the life of a DEA agent working in Pakistan.
Another case close to the Zia government involved the arrest on drug charges of Hamid Hasnain, the vice president of Pakistan’s largest financial house, the Habib Bank. Hasnain’s arrest became the centerpiece of a scandal known as the “Pakistani League affair.” The drug ring was investigated by a dogged Norwegian investigator named Olyvind Olsen. On December 13, 1983 Norwegian police seized 3.5 kilos of heroin at Oslo airport in the luggage of a Pakistani named Raza Qureishi. In exchange for a reduced sentence Qureishi agreed to name his suppliers to Olsen, the narcotics investigator. Shortly after his interview with Qureishi, Olsen flew to Islamabad to ferret out the other members of the heroin syndicate. For more than a year Olsen pressured Pakistan’s Federal Investigate Agency (FIA) to arrest the three men Qureishi had fingered: Tahir Butt, Munawaar Hussain, and Hasnain. All were associates of Baig and Zia. It wasn’t until Olsen threatened to publicly condemn the FIA’s conduct that the Agency took any action: finally, on October 25, 1985 the FIA arrested the three men. When the Pakistani agents picked up Hasnain they were assailed with a barrage of threats. Hasnain spoke of “dire consequences” and claimed to be “like a son” to President Zia. Inside Hasnain’s suitcase FIA agents discovered records of the ample bank accounts of President Zia plus those of Zia’s wife and daughter.
Immediately after learning of Hasnain’s arrest, Zia’s wife, who was in Egypt at the time, telephoned the head of the FIA. The president’s wife imperiously demanded the release of her family’s “personal banker.” It turned out that Hasnain not only atte
nded to the secret financial affairs of the presidential family, but also of the senior Pakistani generals, who were skimming money off the arms imports from the CIA and making millions from the opium traffic. A few days after his wife’s call, President Zia himself was on the phone to the FIA, demanding that the investigators explain the circumstances surrounding Hasnain’s arrest. Zia soon arranged for Hasnain to be released on bail pending trial. When Qureishi, the courier, took the stand to testify against Hasnain, the banker and his co-defendant hurled death threats against the witness in open court, prompting a protest from the Norwegian investigator, who threatened to withdraw from the proceedings.
Eventually the judge in the case clamped down, revoking Hasnain’s bail and handing him a stiff prison term after his conviction. But Hasnain was just a relatively small fish who went to prison while guilty generals went free. “He’s been made a scapegoat,” Munir Bhatti told journalist Lawrence Lifschultz, “The CIA spoiled the case. The evidence was distorted. There was no justification in letting off the actual culprits who include senior personalities in this country. There was evidence in this case identifying such people.”
Such were the men to whom the CIA was paying $3.2 billion to run the Afghan war, and no person better epitomizes this relationship than Lieutenant General Fazle Huq, who oversaw military operations in northwest Pakistan for General Zia, including the arming of the mujahedin who were using the region as a staging area for their raids. It was Huq who ensured that his ally Hekmatyar received the bulk of the CIA arms shipments, and it was also Huq who oversaw and protected the operations of the 200 heroin labs within his jurisdiction. Huq had been identified in 1982 by Interpol as a key player in the Afghan-Pakistani opium trade. The Pakistani opposition leaders referred to Huq as Pakistani’s Noriega. He had been protected from drug investigations by Zia and the CIA and later boasted that with these connections he could get away “with blue murder.”
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