Excerpt from:
"The Big White Lie: The CIA and the Cocaine/Crack Epidemic" 
by former DEA undercover investigator Michael Levine.

Allow me to quote the first-hand account of this dedicated and 
decorated drug-fighter, Michael Levine:

By the evening of July 17, it was clear that the primary goal 
of the revolution was the protection and control of Bolivia's 
cocaine industry.  All major drug traffickers in prison were 
released, after which they joined the neo-Nazis in their rampage 
(exiled Nazis like Klaus Barbie were killing civilians to 
overthrow the Bolivian government).  Government buildings were 
invaded and trafficker files were either carried off or burned.  
Government employees were tortured and shot, the women tied and 
repeatedly raped by the paramilitaries and the freed traffickers.  
The revolutionaries next turned to crushing the national strike.  
(pg. 58)

Ostensibly to show the United States that the new government was 
tough on drug dealers, but actually to eliminate competition and 
streamline and improve cocaine production, Arce-Gomez drew up a 
list of 140 small and midlevel drug dealers who were to be 
suppressed (killed or jailed).  This campaign, put in the hands 
of the Fiances of Death, resulted in massive drug seizures.  
Cocaine valued in the billions of dollars in the U.S. market was 
stored in the Bolivian national bank vaults.  (pg. 59-60)

The reports about the Cocaine Coup coming into DEA were mind-blowing, 
particularly for five street agents stationed in Bolivia.  Although 
the DEA suits supposedly had no idea who Roberto Suarez was until 
he was close to taking over the country, Suarez had a copy of each 
of their personnel files, including intimate personal histories, 
photos, and medical histories of their families. (pg.61)

Levine then talked to an Argentinian known as the "Doctor," someone 
Levine considered the best source of information about the "overlapping 
worlds of espionage and international crime," trying to sort out why 
the CIA supported the Cocaine Coup:
        The Doctor smiled politely again.  "They (the Gasser family) 
have been a behind-the-scenes power in Bolivia for many years.  Have 
you heard of the World Anti-Communist League?"
        I (Levine) felt like a dunce.  "No."
        "This is an organization strongly supported by the CIA.  The 
elder Gasser -- the father of Jose, I think Erwin is his name -- is a 
key member of this organization.  Senor Gasser is also the man who 
financed the 1971 coup putting General Banzer in power...this coup, 
by the way, was strongly backed by the CIA.  This was the beginning of 
coaine's rise to prominence in the Bolivian economy."
        "Yes," I said, trying not to look too stunned.
        "So with the Gassers supporting this last coup, I would say 
your...assumption...may have a certain amount of validity."
        "That the CIA is behind it?" I said, my heart beating faster.
        "Well, of course Argentina backed the coup to the hilt, 
supported it, took part in it; we were the first to recognize the new 
government; we are granting them emergency loans.  We wouldn't have 
done anything without at least some words of encouragement from your 
government.  As a matter of fact, we have information that a group of 
10 of your private banks headed by Bank of America postponed Bolivia's 
loan repayments, giving the new government a chance to consolidate its 
power base and its new cocaine economy."
        I felt like crying.
        The Doctor continued.  "And, of course, many of the same players 
from the Banzer coup are involved in this one, including Herr (Klaus) 
Barbie and General Banzer himself."
        "Barbie?"
        "Oh yes.  You know who he is?"
        I nodded.
        "Well, in 1971 he used the name Klaus Altmann.  He worked for 
General Banzer as a security advisor -- in fact, he reorganized the 
secret police.  I believe he now has similar duties for Arce-Gomez."
        I could think of nothing to say.  "What this Bolivian is 
saying can be very embarrassing to your country and mine," were 
Mario's words.  He had been ready to kill Hurtado.  The Doctor 
waited for me to speak.
        "Why?" I finally asked.
        "Why?"  the Doctor looked puzzled.
        "Why...why would the CIA back this?"
        "Aside from the obvious and most probable -- that the newly 
elected government was leftist -- I think I have an interesting 
theory about an added incentive."  He was smiling a Cheshire smile.  
"You presidential elections are at the end of this year, true?"
        "Yes."
        "Well you know President Carter isn't very popular with 
your associates."
        "I don't get it." What I really meant was that I didn't 
want to believe it.  Most of the CIA agents I knew were passionate 
in their anti-Carter sentiments.  Carter and his CIA director, 
Admiral Stansfield Turner, had reduced the agency's manpower 
dramatically.  I was not a great admirer of Carter, either.  
I thought his drug policies were idiotic and bad for our country.  
A statement by his drug policy adviser, Dr. Peter Bourne, that 
cocaine was "the most benign" of the illicit drugs and the birth 
of the term "recreational drug use" had gone a long way, I 
thought, towards giving Americans license to indulge, and were 
key factors contributing to the massive surge in demand for 
cocaine and the disastrous effects on our nation that soon 
followed.  But to help drug dealers take over Bolivia to 
defeat President Carter seemed bizarre.
        "Sure," said the Doctor.  "How popular is he going to 
look with your people if he loses a whole country to drug dealers?"
        "I don't buy it," I said.
        The Doctor chuckled.  "It's an interesting theory though, 
isn't it?"
        Was the Doctor's theory believable?  Eleven years laer, 
news of the "October Surprise" came out -- the allegation that 
the CIA and the Reagan election committee conspired to delay 
the release of American hostages in Iran to ensure Carter's 
defeat in the 1980 elections.  This was going on at exacatly 
the time that the new-Nazis in Bolivia were on their rampage 
of torture, rape, and murder.  In addition, as I have learned, 
Gasser, Suarez, and three other traffickers met with Arce-Gomez 
and members of the Argentine and Bolivian military on June 17, 
1980 to plan the coup, and a tape-recording of that meeting was 
given to the CIA by one of the Argentines present. (pg.74-76)
______________

The rest of the book details Levine's career troubles for 
trying to bust CIA-supported drug smuggling and money-laundering 
involving Bolivia, Panama and Mexico.  He lost.  The drug 
businessmen and the spooks won.

Also read Michael Levine's "Deep Cover."

Larry


"If a 'narcodemocracy' means that the government is completely corrupt,
that the government is involved in drugs, that the influence of drug
traffickers reaches the top levels of government, then the United
States is a 'narcodemocracy'."

       Michael Levine