How the Royal Institute of International Affairs Runs Drugs and Dirty Money

Now we will take the reader up through the chain of command of the world drug and dirty money business, to the top level of political control: to Chatham House, St. James Square, London, the headquarters of the Royal Institute of International Affairs. We have inspected the books of Drugs, Incorporated, met the operating personnel, visited its subsidiaries in Hong Kong, Bangkok, and Peking, as well as its farms and factories in the Golden Triangle, on the common border of Burma, Laos, Thailand, and the People's Republic of China. The Far East drug traffic emerges as a single business operation, a British-Chinese joint venture, in which Britain is the senior partner.

It is obvious, by now, that an operation of this scope could not exist without the political approval of the British government, nor without the gigantic supporting facilities of the world's off-shore credit markets, the world's gold and diamonds trade, and "hands-on" management of the retail distribution, or organized crime aspects of the operation.

The next step is an introduction to the Board of Directors of Drugs, Incorporated, and an overview of their multifarious ties to the Far East opium growing and wholesaling operation, the offshore dirty money operations, gold and diamonds mining and distribution, the Canadian connection, the Zionist Lobby dirty money installations, and the top levels of British policy-making.

The Hong Kong and Shanghai Bank is not an independent malefactor, but a special operation of the British oligarchy's top banks, specializing in the Far Eastern drug traffic. The Hong Kong and Shanghai Bank's governing body, the London Committee, is the British oligarchy's delegated group assigned to the Far East drug traffic.

More specifically, it is an economic warfare operation. Two of its directors, J.H. Keswick — of the family that founded Jardine Matheson in 1828 to trade opium — and J.K. Swire — of the Swire family of hereditary opium traders — were senior officials in Britain's Ministry of Economic War during World War II. Another senior official of that Ministry is Sir Mark Turner, the chairman of Rio Tinto Zinc, the HongShang's partner in numerous fields, including gold operations. Turner is now a key figure in the Royal Institute of International Affairs, founded by Lord Milner, an earlier chairman of Rio Tinto Zinc.

What we will show here is that the Royal Institute of International Affairs (RIIA) and its leading personnel control not only the Far Eastern drug traffic but every important dirty money operation on the surface of the globe.

The next section will further document the British monarchy's control of the Canadian banks and corporations, the same installations responsible for channeling drugs into and illegal funds out of the United States. It demonstrates that the direct agency of control over Canada's huge financial warfare apparatus is the Canadian Institute of International Affairs (CIIA), a mock-up of Britain's RIIA, created by the RIIA in the first place.

Included in the Canadian operation are the Bank of Nova Scotia's domination of Canada's gold market, Canadian banks' huge role in Caribbean Silver Triangle dirty money operations, and — most important — the direct links between the hard-core Far East drug wholesalers, and the Canadian institutions that have participated in the wholesale drug traffic on the North American continent since the closing days of Prohibition.

Through the Canadian outpost of the British monarchy, the drug traders close the circle between the Keswick family of Hong Kong, the founders of Jardine Matheson in 1828, and the Bronfman family, the immediate sponsors of the top levels of so-called organized crime in the United States.

From their base in the $200 billion dirty money traffic, the institutions assembled in force on the leading committees of the RIIA dominate:

1) All of Britain's top commercial banks directly

2) Both big British oil companies, British Petroleum and Royal Dutch Shell directly

3) All the leading British meindirectly

4) The world gold and diamonds trade

5) Every leading old-line opium P&O Steamship Company, Jardine Sons, and Charterhouse Japhet, directly

GOAL: REBUILD THE EMPIRE

Now that the command structure of the worldwide operation is evident, we are going to examine the content of the Royal Institute of International Affairs' subversive activities, following through the careers of some of its leading operatives — including Sir John Henry Keswick, member of the family which controls the Hong Kong and Shanghai Bank, and from the old Jardine Matheson opium trading firm; and the current chairman of the Council of the RIIA, Lord Humphrey Trevelyan, member of the board of directors of HongShang's gold-smuggling subsidiary, the British Bank of the Middle East. These are the men who created the Peking Connection in its modern form.

According to the Charter of the RIIA published in 1920, the Royal Institute of International Affairs is "an unofficial and non political body," whose object is "to advance the sciences of international politics, economics, and jurisprudence," to "provide and maintain means of information upon international questions," and "to promote the study and investigation of such questions." Few times in the history of the written word have so many lies appeared in so few lines.

However, a concise summary of the RIIA's purposes appears in its de facto founding document, Cecil Rhodes's 1877 bequest. Rhodes, who founded both the gold and diamond mining empire that still dominates world markets under the aegis of Anglo-American and De Beers, and also founded the dope-trading Standard Bank (the African partner of the Asian-based Chartered Bank, since merged), is the starting point for the present form of the disease. Rhodes left his wealth to the Rhodes Trust, administered by Lord Milner. Milner's collection of Oxford trainees, called the "Milner Kindergarten," made up most of the 1916 Lloyd George government, and formed the RIIA at a meeting in Versailles on May 30,1919.

Rhodes's 1877 will was:

To establish a trust, to and for the establishment and promotion and development of a secret society, the true aim and object whereof shall be the extension of British rule throughout the world, the perfecting of a system of emigration from the United Kingdom and the colonization by British subjects of all lands wherein the means of livelihood are attainable by energy, labor, and enterprise, and especially the occupation by British settlers of the entire continent of Africa, the Holy Land, the valley of the Euphrates, the islands of Cyprus and Candia, the whole of South America, the islands of the Pacific not heretofore possessed by Great Britain, the whole of the Malay Archipelago, the seaboard of China and Japan, the ultimate recovery of the United States of America as an integral part of the British Empire, the consolidation of the whole Empire, the inauguration of a system of colonial representation in the Imperial Parliament which may tend to weld together the disjointed members of the Empire, and finally, the foundation of so great a power as to hereafter render wars impossible and promote the best interests of humanity. (1) (emphasis added)

The secret society concept was passed on by Milner, Rhodes's successor as High Commissioner in South Africa, through Milner's trainees Lionel Curtis (of the Round Table Group), and Lord Robert Cecil — whose family dates back to the Genoa-Amsterdam coup against Elizabethan humanism in 1601. Curtis and Cecil both participated in the May 1919 meeting at Versailles which founded the RIIA.

The Royal Institute for International Affairs is the secret society.
 

1949: The British-Peking deal

Let us backtrack, for a moment, to the point of origin of the Lon don-Peking joint drug-running venture in the Far East, the wartime deal between the RIIA and Chou En-lai. Detailed records of the relevant years have recently been made available. In August 1978, the U.S. State Department released 1,300 pages of documents to the public dealing with American diplomacy in China at the time of the Maoist takeover. (2) From the British side, the RIIA in 1977 released its own records of its wartime and postwar operations group in the region, the Far East Committee — the real British Foreign Office. (3)

Both sets of documents yield the same interpretation: the creation of the People's Republic of China included an alliance between the British dope-runners and the Chinese dope-runners. This was negotiated from the British side by Sir John Henry Keswick and from the Chinese side by Chou En-lai. The Chinese team also prominently included top figures in the opium trade, such as the Bank of China's Chi Ch'ao-ting, Shanghai Commercial Bank's K.P. Chen (who also headed the Chinese wing of the Institute for Pacific Relations), and elements of the so-called Green Gangs. The Green Gangs, which could be called the Chinese mafia, ran the opium trade not only in the Far East but through the far-flung networks of the Chinese expatriate community.

From both the British and the Chinese side, the alliance was explicitly against the United States. The Chinese knew it, and said so, the British knew it, and said so, and American diplomats cabled home that the United States had been shafted. (4)

When the top representatives of Britain's RIIA began soundings in the Chinese Communist stronghold of Yenan and at Chou En-lai's Chungking legation during the World War II period, they had reasons dating back a century to expect results. China lost the opium wars because such a large section of officialdom had been corrupted through opium dependency.

But the credit for the re-creation of the alliance between Britain and the modern equivalent of the Triad gangs must go to Sir John Henry Keswick, the RIIA's man-on-the-spot at the British Embassy in Chungking during the crucial period of World War II. It is known that Keswick was in regular contact with Chou En-lai in his capacity as a prominent businessman and through his attachment to the British embassy in Chungking. Chou was in Chungking from 1937 through the 1940s. (5)

Keswick, of the hereditary drug-trading family that founded and still controls Jardine Matheson, also represented the RIIA and its sub-branch, the Institute for Pacific Relations, to the United States. (6) Sir John Henry is still Britain's number one man for China policy, Chairman of Britain's China Association, Vice-President of the Sino-British Trade Council, and a member of the Great Britain-China Committee. (His predecessor at the China Association from 1951-55 was John Kidston Swire, of the old opium-trading Swire family, who still sits on the London Committee of the HongShang.)

Two pieces of eyewitness testimony from Mao Tse-tung's wartime hideout in China's northern Yenan province bear comparison. The first is the report by Peter Vladimirov, the Soviet liaison to Mao's headquarters in Yenan during 1941-45. According to the Soviet-published Vladimirov Diaries, the Chinese Communist Party operating in Yenan grew opium for profit, not only for medicinal uses. Opium had been a major cash crop for Yenan before Mao's arrival; Vladimirov claimed that Mao continued the practice. The Soviet representative also suspected the CPC's chairman's close contact with American visitors connected to the Institute for Pacific Relations. (7)

A second account appeared in the January 1978 issue of International Affairs, the journal Of the RIIA:

Victor Farmer, who was a director of Imperial Chemical Industries (China) and who in 1944 had recently returned from a visit to the Far East (stated): "I have met some (Chinese) Communists and their ideas are very open-minded. If you could get rid of this ultra-nationalist clique in the saddle at present in Chungking, and many Government officials are extremely broad-minded, I think that the way would be open for a compromise with the Communists; and an effective compromise." (8)

The view Farmer expressed on behalf of the RIIA's Far Eastern Committee had already surfaced in the United States through the committee's American branch, the Institute for Pacific Relations (IPR), the institution that produced the pro-Maoist group in the U.S. State Department centered around John Stuart Service and John Carter Vincent. Although the IPR included American citizens and was funded through the Rockefeller and Carnegie Foundations, it functioned exclusively as a branch of the RIIA and British policy-making.

The IPR's two most prominent general secretaries, Edward Carter and William Holland, had extensive British pedigrees. Carter, whose reign as IPR chief lasted until 1946, was a leader of the international YMCA, while his successor Holland was a citizen of New Zealand until 1943 and a member of London's Royal Institute.

The dead giveaway on the IPR's British character is the organization's move to Canada subsequent to the 1950 McCarran Committee investigation, which mistook pro-British treason for pro-Communist treason. With hearty British cheers, the disgraced Institute for Pacific Relations moved to Canada.

Britain's support for the IPR was further expressed by the chairman of the RIIA's Far Eastern Group, Sir Andrew McFadyean (who in 1947 became the chairman of S.G. Warburg's, the merchant bank). In a 1952 letter he wrote:

"The fact that I have criticized certain activities and certain officers of the IPR entitles me to say with greater emphasis, firstly that it would have been a useless body if it had not represented a wide variety of political views, and secondly that throughout my acquaintance with the Institute its governing body, while respecting the rights of free expression, has never encouraged or countenanced subversive views." (9)

Once in Canada, the IPR came under the official sponsorship of the Canadian Institute of International Affairs, the local RIIA subsidiary, and its chairman — now "honorary Chairman for Life" — Walter Lockhart Gordon. During the last 30 years, Gordon has been the most consistent North American apologist for Maoist China. Gordon currently has direct personal ties to Canada's "old China hands," including Dr. Paul Lin, Chester Ronning, and James Endicott. All three served as advisors to Chinese Premier Chou En-lai; Paul Lin's official duties as an aide to Chou terminated only in 1965. Lin, in turn, is a power in the expatriate Chinese community in Vancouver, the most important transshipment point for opium entering the United States.

The ties run back the other way across the Pacific as well. Gordon sponsored the initial founding of the Chinese People's Institute of Foreign Affairs in China, an official Red Chinese organization that currently maintains links with the Canadian Institute of International Affairs. Chester Ronning has been the Chancellor of the University of York in Canada; Walter Lockhart Gordon arranged funding for the Norman Bethune School at that university under Ronning's supervision, the most overtly pro-Maoist institution on the North American continent. That is the pedigree of the British-created, British-defended, and still British-run Institute for Pacific Relations. (10)
 

SQUEEZE PLAY

According to the RIIA's official account cited above, the RIIA-IPR's function at the close of World War II was to propose the John Service-John Keswick policy of fostering Maoism as the "alternative" to Britain's shrill insistence on her colonial rights in the area. Prime Minister Churchill still balked at the self-determination provisions of the Atlantic Charter, namely that Britain give up its Southeast Asian colonies.

Anti-British feeling ran so high in the United States, the International Affairs study points out, that Henry Luce's Life magazine urged the British people,

"to stop fighting for the British Empire and fight for victory ... if you cling to the Empire at the expense of a United Nations victory you will lose the war because you will lose us."

A poll taken in 1942 revealed that 56 percent of Americans questioned agreed that the British could rightly be described as "oppressors . . . because of the unfair advantage . . . they have taken of their colonial possessions."

The RIIA and the IPR's "alternative" posture was a retreat under fire from an imperial position in the Far East to an alliance with the Great Han chauvinists of the Communist Party of China. Any suggestion that an actual policy difference intervened between the "hidebound reactionary" Winston Churchill and the openly pro-Maoist Victor Farmer of the RIIA's Far Eastern Group, is made silly by the role of Jardine Matheson's John Henry Keswick.

Keswick was a prominent figure in the Shanghai International Settlements, of which his brother, Sir William Johnston Keswick, was chairman throughout the 1930s and until 1949. Britain had owned a chunk of the city of Shanghai by the treaty that ended the Second Opium War. The status of the Shanghai International Settlement was one of the major policy conflicts between Roosevelt and Churchill, since it represented a foreign colonial intrusion in an allied nation. Britain's concern for Shanghai may also have been motivated by the fact that it was the world's center for refining opium into heroin. Keswick and the refineries both picked up and moved to Hong Kong in 1949.

In January 1945, pro-Maoist Victor Farmer and John Henry Keswick (with Andrew McFadyean) together led Britain's delegation to the Institute for Pacific Relations's most important conference at Hot Springs, W. Va. Ten British officials went along in tow with the RIIA officials. The British delegation presented a softer front to the Americans than the Churchill government was then willing to officially concede. RIIA documents show that the queer combination of Chinese Communist Party apologist Victor Farmer and old-line opium trader John Keswick did the trick of mollifying the Americans.

"The general atmosphere here (at Hot Springs — ed.) is very much better than (at the last Institute for Pacific Relations conference at) Mont Tremblant. . . . There is much less disposition to twist British tails just for the fun of seeing how the animal reacts," McFadyean wrote back to the RIIA in relief. (11)

American delegates included Treasury official Harry Dexter White, responsible for selling to the United States John Maynard Keynes's British blueprint for the International Monetary Fund.

Not until Mao's army marched into Shanghai in 1949 did the Americans realize what they were in for. The new mayor of Shanghai, Chen Yi, summoned John Keswick for secret talks, the State Department documents reveal, virtually as soon as the mayor arrived in the city. After a lengthy round of talks, Keswick departed and called on the American consul-general. The stunned diplomat later telexed back to Washington that Keswick,

"made a statement that he did not expect Americans to fare well under the Communist regime, but did not indicate whether this opinion was formed as a result of the conversation with the mayor."

Keswick was either threatening the United States or relaying what the Chinese had told him, the consul-general wrote.

"He would hardly have invented this as a bluff to frighten away American competitors," the American concluded optimistically. (12)

How ingenuous that evaluation was became clear within days.

Behind the backs of the Americans, the British negotiated a deal to keep Hong Kong under London's control, and opened up confidential lines of communications between the mainland and Hong Kong. In wires to Washington, American diplomats accused the British of tearing up the standing Anglo-American agreement that all decisions respecting the Communist government would be made in close consultations. "The Communists are obviously trying to play off the British against us and seem to have succeeded somewhat," one American official wrote. (13)

The British added insult to injury by maintaining an official pro-Maoist propaganda campaign, which began far before the Communists took over. British officials gave awards to leading members of the CCP, even while maintaining "official" diplomatic relations with Chiang Kai-shek, and gave lavish public receptions for dissident elements of the Kuomintang, such as the widow of Sun Yat-sen, the Chinese nationalist leader who died in 1925. (Sun's wife is currently an official of the PRC government.) Shortly before the Communist takeover, one journalist wrote:

"The British have a reputation for very smart diplomacy in Asia. Part of this comes from their ability to spot key groups and get on the right side of them. It is generally believed by observers that the British now figure the intellectual left wing to be one of the groups that will gain rather than lose strength in the political changes of the next few years, and are preparing for this eventuality." (14)

American intelligence dispatches from 1947 reprinted in the State Department release wrote:

"It is significant to note that shortly after the Communist takeover of the key city of Shanghai, the Maoists halted all anti-British propaganda." (15)

Creation of the Hong Kong drug nexus

Under the public cover of Anglo-Chinese mutual seduction, and before the horrified eyes of American observers, the British and Maoists created the financial infrastructure of what would later underwrite the Far East narcotics traffic. Keswick's opening of channels between Peking and Hong Kong permitted a division of the Shanghai banking families between mainland China and Hong Kong; this 1947 division founded the expatriate Chinese connection between Peking and London. (Apparently, other expatriate networks, like the Thai bankers who date back to the 1930s, were consolidated in the same fashion, al-though the same degree of documentation from the period is not yet available.)

The Senate investigation of the Institute for Pacific Relations revealed indirectly the role of the Royal Institute of International Affairs in the creation of the drug-financing networks. The McCarran Committee made public some of the correspondence of IPR General Secretary William Holland. Holland, before his ascendance as IPR chief in 1946, took over the China stations of the American Office of War Information, an organization closely tied to the wartime predecessor of the Central Intelligence Agency, the Office of Strategic Services. Holland was in frequent touch with the head of the RIIA in London, which as noted above, had created Holland's IPR in the first place.

In one of the letters available from the 1950-51 McCarran proceedings, Holland informed the RIIA that a top Chinese Communist banking official "may turn out to be one of the best friends we have." (16) The official in question, Chi Ch'ao-ting, was a top officer in the Nationalist Bank of China, until the Maoist victory. At that moment, he shifted allegiance to the PRC Bank of China. Moreover, Chi's defection was preceded by that of a whole faction within the Nationalist Bank, which chose to "make a deal" with the Communists rather than flee to Taiwan. This faction, according to the 1949 State Department papers, made arrangements to communicate with Chinese IPR leader and Shanghai banker K.P. Chen, who had left Shanghai for Hong Kong, even after-the Communist takeover. (17)

It should be added that, as a matter of public record, most of the Nationalist Bank of China's cash flow during the period of Chi's service came from the opium traffic, which the Chiang Kai-shek government continued throughout the war years. Chi's shift of allegiance was merely the poppy stem's bending with the wind of change.

Chi's defection to Mao's Bank of China began an illustrious career, during which he rose to a high position in the bank and participated in international conferences for the PRC as well. As noted, the Bank of China's financial connections to the West are through Hong Kong, its reserves were and still are held with the Hong Kong and Shanghai Bank and the Standard and Chartered Bank, its remittances payments conducted through the same banks, and so forth. Chi's move — under the approving eyes of Holland — only typified what went on in the Shanghai banking community at large. In the same dispatch to the RIIA cited above, Holland reported on his contacts with leading Shanghai bankers, citing the case of Chinese Shanghai Commercial Bank chief K.P. Chen. Chen fled to Hong Kong shortly before the Communists took over, Holland reported, adding, "Impossible as it now seems, I have an idea Chen will later go to Shanghai." (18)

An entire section of the Shanghai bankers resisted pressure by the departing Nationalist forces to transplant their operations to Taiwan. As in the case cited by Holland, they preferred to hedge their bets between the British and the People's Republic of China. At the lower levels of the narcotics traffic, the notorious Green Gangs, the foot-soldiers of the traffic, broke en masse with the Kuomintang forces, and moved into the Communist camp. Neatly and speedily, the entire postwar opium apparatus had been redeployed between Shanghai and Hong Kong.

One of Holland's close associates during the period was the Canadian representative in Chungking, Chester Ronning — still prominent in the Canadian connection to the London-Peking drug apparatus. Utterly enamored of the Maoists, Ronning met almost weekly with Chou En-lai's chief deputy, Wang Ping-nan, during his 1945-47 tour of duty. (19)

Ronning's relationship with Wang Ping-nan has a special importance, which we will indicate momentarily. Ronning went on to act as midwife in the Institute for Pacific Relations's 1950 re-birth in Canada after the scandal.

Both the State Department and the RIIA releases make fools of those Americans who thought that the Institute for Pacific Relations had "betrayed" American ally Chiang Kai-shek to the red menace. The Kuomintang, a gang that couldn't shoot straight, was merely losing the battle for Far Eastern opium. (There has been substantial documentation, not immediately relevant to the present chain of evidence, that remnants of the Kuomintang army in Burma continued to grow opium for a quarter-century after the Communist victory, and that some of their friends in the China Lobby, e.g. AirAmerica, transported it for them.) In fact, the United States was sold down the Pearl River by our British "allies," in combination with the snickering Chinese. America's youth paid the terrible price of this deception.

At the outset of the Korean War, the public amity between Great Britain and China was reduced — for purposes of public consumption. However, the leading individuals who created the Peking Connection continued to hold all the important strings, and maintained the full continuity of the narcotics traffic. Despite the public hostilities, the PRC operated freely on Hong Kong's illicit gold exchanges, and present-day luminaries like Stanley Ho (see Section 5) made their fortunes smuggling strategic goods into China from Hong Kong.
 

THE EMERGENCE OF THE "CHINA CARD"

In 1951, Lord Humphrey Trevelyan took his post as British Ambassador to China, the same man who today sits on the board of the British Bank of the Middle East. Public contacts between Lord Trevelyan and the Peking regime were necessarily low-key, by the dictates of what even the British and Chinese consider public decency. To cover their tracks the British claim that Trevelyan did not meet Premier Chou En-lai during the first two years of his stay in Peking, although they do admit that Trevelyan's fellow diplomat John Henry Keswick had had regular access to Chou during the early 1940s in Chungking.

However, Trevelyan's stay in Peking was not without great importance. Trevelyan set up the beginnings of the so-called American opening to China, laying the basis for the "China Card." His partner in this maneuver was Chester Ronning's old Maoist contact, Wang Ping-nan. By this time, Chou En-lai's old deputy of the Chungking days was the PRC's Ambassador to Poland. Trevelyan set up the first American diplomatic contacts with the People's Republic of China — through China's Embassy in Poland — during the mid-1950s. America's contact man with the Peking government was Ambassador Wang Ping-nan.

Trevelyan's further career is remarkable. After a brief stay in West Germany, he went on to become Britain's Ambassador to Egypt during the Suez Crisis — the British-French-Israeli invasion of Egypt that wrecked President Eisenhower's world development plan, the Atoms for Peace program. After a tour at the British Foreign Office, he was Britain's Ambassador to the Soviet Union during 1962-65, during the British-inspired Cuban missile crisis. Currently, he sits on the board of directors of British Petroleum, along with John Keswick's brother Sir William Johnston Keswick, and various other members of the boards of the HongShang and the RIIA council.

Lord Trevelyan completed the circle by taking the chairmanship of the Council of the RIIA, while keeping an active hand in the opium business, through the British Bank of the Middle East.

Direct experience in the drug trade is apparently a standard qualification for chairmen of the Council of the RIIA.

When Trevelyan, Keswick, Holland, and Ronning were young men setting up the Peking Connection during World War II, the chairman of the RIIA Council was Waldorf Astor. Astor's great-grandfather, John Jacob Astor, was a British agent-of-influence in the first years of the American republic; according to his biographer, J. J. Astor was the first American to get in on the drug trade alongside the British East India Company, starting in 1816.

Figure 6

London's Royal Institute for International Affairs— Drugs and Dirty Money
 

The RIIA is not composed of the most influential people in Great Britain the inner circle of the British monarchy and the orders of nobility — but rather brings together the chief operating officers of the British monarchy's policies in various fields.

Its leading members include the following:

Lord Humphrey Trevelyan

• Son of the British historian George Trevelyan;

• Chairman of the Council of the RIIA;

• Chairman of the Trustees of the British Museum;

• Chairman of the Committee for the Tutankhamen Exhibit;

• Economic and Financial Advisor, United Kingdom High Commission for West Germany, 1951-53;

• Ambassador to Egypt, 1955-56;

• Undersecretary at the United Nations, 1958;

• Ambassador to Iraq, 1958-61;

• Deputy Undersecretary of State of the Foreign Office, 1962;

• Ambassador to the Soviet Union, 1962-65;

• High Commissioner in South Arabia, 1967.

• Director:

  • British Petroleum Co., 1968-75;

  • British Bank of the Middle East (100 percent owned by Hong Kong and Shanghai Bank);

  • General Electric Company Ltd., 1965-75;

  • President, Council of Foreign Bondholders.

Sir (Roland) Mark (Cunliffe) Turner

• Council RIIA, 1949-50;

• Chairman Rio Tinto Zinc;

• Deputy Chairman of the merchant bank Kleinwort Benson Ltd.;

• Chairman, Bank of America International Ltd. (London), 1971-;

• Director,

  • National Cash Register; Toronto Dominion Bank;

  • Midland and International Banks Ltd.;

  • formerly with Samuel Montagu and Co.;

  • Ministry of Economic Warfare, 1939-44;

  • Undersecretary,

  • Control Office for Germany and Austria, 1945-57.

  • Sir Frank Roberts:

  • Member of RIIA Council;

  • Advisory Director Unilever;

  • Advisor on International Affairs to Lloyds;

  • British Embassy in Paris, 1932-35;

  • Cairo, 1935-37; Charge d'Affaires to Czech Government, 1943;

  • Deputy High Commissioner to India, 1949-51;

  • Ambassador to Yugoslavia, 1954-57;

  • Representative to North Atlantic Council, 1957-60;

  • Ambassador to the Soviet Union, 1960-62 (preceding RIIA Chairman Lord Humphrey Trevelyan);

  • Ambassador to West Germany, 1963-68;

  • Vice-President, German Chamber of Commerce in the United Kingdom, 1974-.

Sir Richard Powell

• Member of RIIA Council;

• Deputy Chairman, Permanent Committee on Invisible Exports, 1968-;

• Deputy Secretary Ministry of Defense, 1950-56;

• Permanent Secretary, Board of Trade, 1960-68;

• President, Institute for Fiscal Studies.

Carmichael C.P. Pocock

• Member of Council, RIIA;

• Managing Director, Royal Dutch Shell, 1970-;

• joined Shell in 1946,

Sir Arthur Knight

• Member, RIIA Council;

• Chairman of Courtauld's since 1975;

• Director, Rolls Royce, 1971-;

• Member, Finance Committee of RIIA, 1971-;

• Court of Governors, London School of Economics, 1971-.

Andrew Knight

• Member, RIIA Council;

• Editor of the London Economist, 1974-;

• J. Henry Schroeder and Wagg Co., 1962-;

• Investors Chronicle, 1964.

Ronald Grierson

• Economist staffwriter, 1947-8;

• S.G. Warburg, 1948-58, executive director 1958-69;

• Chairman Orion Bank, 1971-75;

• Director, General Electric Ltd;

• member Trilateral Commission.

William Malpas Clarke

• RIIA Council;

• Director, Committee on Invisible Exports since 1966;

• Director, Grindlays Bank Ltd.;

• Euromoney Publications;

• Brandt's Ltd.;

• The London Times, 1962-66.

Baron Shawcross

• Member, RIIA Council;

• Director, Shell Transport and Trading Co., 1961-72;

• Morgan et Cie., International, 1966-;

• Times Newspapers Ltd., 1967-74;

• Hawker Siddeley Group Ltd., 1968-;

• Chairman, International Advisory Council, Morgan Guaranty Trust Co. of New York until 1978.

B.A.C. Sweet Escott

• Finance Committee, RIIA;

• Group Finance Coordinator, BP Co. Ltd., 1962-;

• Economic and Overseas Committees, Confederation of British Industries;

• Kleinwort Committee on Invisible Exports.

J.R. Robinson

• Finance Committee, RIIA;

• director, Eagle Star Insurance;

• former director, National Westminster;

• Finance Director, Rio Tinto Zinc.

J.P.G. Wathen

• Finance Committee, RIIA;

• General Manager, Barclays Bank Dominion, Colonial and Overseas;

• former manager, Lloyds Bank Ltd.

Again, Chart 2 shows that the leading members of the London Committee of the Hong Kong and Shanghai Bank have extremely close ties to the core RIIA group. The chart also shows that these links continuously intersect two major groups whose activities are key to drug wholesaling and large-scale laundering of dirty money.

The first is the old-line British opium traders, including the Peninsular and Oriental Steamship Lines, Jardine Matheson, John Swire and Sons, and Charterhouse Japhet. The second is the tightly knit complex of world gold and diamonds production and sales.

• Lord Catto of Cairncatto is the chairman of the board of the prominent merchant bank Morgan Grenfell & Co., which has close ties of ownership to Morgan et Cie. International, one of Lord Shawcross's companies.

   

• Philip de Zulueta, the private parliamentary secretary to Harold MacMillan when the latter was Prime Minister, advisor to every Tory Prime Minister since the war, spent most of his career with the leading British merchant bank Hill Samuel, also the largest merchant bank in South Africa; he is thus in close association with Sir Mark Turner, Rio Tinto Zinc's Chairman, and a director of Midland, and International Banks, Samuel Montagu (owned by the same families as Hill Samuel), and various gold and other mining ventures in which Zulueta has interests.

   

• Henry Neville Lindley Keswick, of the family that controls Jardine Matheson, now occupies the traditional Jardine Matheson seat on the London Committee of the HongShang, a tradition that goes back to 1864. His father, Sir William Johnston Keswick, is also a director of British Petroleum, along with Lord Trevelyan, Chairman of RIIA, and B.A.C. Sweet-Escott of the RIIA Finance Committee.

   

• The elder Keswick is also the representative of drug wholesaling operations in the Far East with respect to drug retailing operations in Canada: he is a director of the Hudson Bay Company (see Section 8).

   

• H.N.L. Keswick's uncle David Johnston Keswick has been with Samuel Montagu, a core RIIA bank, since 1930, as well as with the family firms. Another uncle, Sir John Henry Keswick, is the top man for British corporate policy towards China. He is Chairman of the China Association, Vice-President of the Sino-British Trade Council, and a member of the Great Britain-China Committee.

   

• John Kidston Swire, the Swire family's representative on the HongShang board, goes back to World War II with RIIA Council Member Sir Mark Turner and various other leading lights of the RIIA, when they all worked on the Ministry of Economic Warfare. Sir John Henry Keswick is another Ministry of Economics War veteran.
   

• J.A.F. Binny and R.J. Dent are both directors of the National Westminster Bank, one of the core RIIA institutions.

   

• Sir Michael Turner, who retired as Chairman of the Hong Kong and Shanghai Bank in 1952 but remains on the London Committee, is still a director of National Westminster Bank.

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Canada: North America's Hong Kong

Most heroin entering North America comes through Canada. This is the estimate of authoritative law enforcement sources — despite the misleading publicity about Mexican supply routes, which are in any case mostly transshipment channels for Far Eastern dope.

Virtually everything the reader now knows about the British Crown Colony of Hong Kong applies to the British Dominion north of the American border. The idea that Canada is a nation — in the sense that Americans understand the term — is the product of low-grade, if persistent, public relations efforts. Politically and financially, Canada is run straight from the top by the British monarchy, starting with the Governor-General whom the Queen appoints, the Privy Council, and including the core group of Knights of St. John of Jerusalem who control the bulk of Canadian business.

Canada's role in the drug flow to the U.S. is not much different from its role during Prohibition — as we will document in Part III of this report. Canada transships most of the heroin entering the American market, because it was created and maintained as a British Dominion on the northern flank of the United States to carry out precisely such operations.

Despite the British monarchy's iron grip over the highest levels of Canadian public life, there are a few individuals well placed in Canada, including in its law enforcement services, who look to America rather than Britain as a model for Canada's future. At great risk to themselves, they have fought a long rearguard action against criminal activities that enjoy near official sanction. The American public has heard little of their efforts because of Canada's Official Secrets Act, modeled on Great Britain's own 1911 Official Secrets Act.

That legislation prevents any publication or public discussion of what the government — that is, the British-appointed Governor-General — chooses to regard as a state secret. Given Canada's make-up, most drug-running, dirty money laundering, and organized crime activity, including political terrorism, fall into that category. Anyone who writes about this in Canada will go to jail immediately and could, under the law, be executed.

But without the help of Canadian citizens with access to official sources, willing to take the risk, this report could not have been written.
 

Three crucial cases

Before examining the structure of Canada's drug and dirty money operations, a few leading examples will suffice to indicate the nature of the problem. One is the personage of Walter Lockhart Gordon, Honorary Chairman for Life of the Canadian Institute of International Affairs (CIIA), the Canadian offshoot of the British Royal Institute of International Affairs. The. CIIA receives most of its funding directly from the office of the Governor-General. Every Canadian Secretary of State for External Affairs since the CIIA's founding has been a CIIA member.

The CIIA is also the official sponsor of the Institute for Pacific Relations, the nexus of Britain's Peking Connection (Sections 6 and 7), after public scandal forced the Institute for Pacific Relations to leave the United States after 1947.

1. WALTER LOCKHART GORDON

Walter Lockhart Gordon's fingerprints show up throughout this section. Apart from his lifetime post at the top of the CIIA, he is a past chairman of the Privy Council, the Governor-General's select operations group for running Canadian politics (1967-68); he was finance minister from 1963 to 1965; and is a director of some of the dirtiest corporate operations in Canada.

But most important, he founded Clarkson and Gordon, the accountants firm that audits three of the five Canadian chartered banks: Bank of Nova Scotia (of which Gordon is a director), Toronto Dominion Bank, and Canadian Imperial Bank. Gordon's partner, Stephen Clarkson, is also a leading member of the Canadian Institute of International Affairs, as well as a leading sponsor of the Institute for Pacific Relations. Through a network of accountants dispersed through these banks, Clarkson and Gordon functions as a command center for the most extensive dirty money laundering operation in the world, stretching from the heroin receiving points in the Pacific Northwest, to the branch operations of the Canadian banks in the Caribbean Silver Triangle.

Gordon, as we shall detail below, is also Canada's chief con tact-man for the Peking Connection (see Section 7).

 

2. THE EAGLE STAR INSURANCE COMPANY

A second example is the group of British "spooks" who run the Eagle Star Insurance Company, which heads the accompanying chart of the Canadian drug networks. Eagle Star is one of Britain's largest financial corporations, and a joint operation between Britain's top financial firms, including Barclays Bank, Lloyds, Hill Samuel, and N.M. Rothschild & Sons.

Eagle Star, as the chart shows, runs the Bronfman family operation from the top, through its control of English Properties, and English Properties' control of the "Bronfman" Trizec Corporations.

The Bronfmans are what is known in intelligence jargon as "cutouts," or controlled front-men. What is significant here is Eagle Star's special qualifications for controlling the Bronfman family's corporate group, which, in turn, has been the seat of Canada's rum-and dope-running, dirty money, and terrorist operations since Prohibition. Eagle Star's management is British intelligence, by an arrangement that traces back to World War II.

Two Eagle Star directors, Sir Kenneth Strong and Sir Kenneth Keith, were Number One and Number Two men, respectively, in British intelligence immediately after World War II — when the Bronfman family created its "legitimate" front Trizec with Eagle Star funding. (1) Both men have kept up their close ties to Britain's foreign intelligence service, MI6. Part III of this report tells the story of the Bronfman family's dope-running, organized crime, and terrorist activities. What is crucial to keep in mind here is that the men who own the Bronfmans sit in the highest councils of British covert operations.

In a pattern that has already become familiar, Sir Kenneth Keith moves between the secret world of British intelligence and the opium politics of the Far East. Keith is also a leading member of the Canadian Institute of International Affairs. Among other leading corporate positions, including a directorship at Canada's Bank of Nova Scotia, he is the chairman of the Hill Samuel group of companies, one of the leading British merchant banks, and an incarnation of the old Samuel banking family's interests.

Sitting with Sir Kenneth Keith on the board of directors of Hill Samuel is the Hong Kong and Shanghai Bank's Sir Philip de Zulueta, member of the HongShang's controlling "London Committee." Zulueta was private parliamentary secretary to a string of British Conservative prime ministers while Sir Kenneth Strong was completing his career at British intelligence.

Eagle Star is a sterling example of Canada's role in drugs because it contains every element of the drug machine: the Bronfman family, which has spokes tying into the Zionist dirty money and terrorist apparat; the top levels of British intelligence; and the core of the opium trade, the HongShang itself.
 

3. THE HUDSON'S BAY COMPANY

The Hudson's Bay Company is the appropriate starting point for a look inside the operations of Canada's drug machine. During Prohibition, it was the Bronfman's Seagram's partner in the "Pure Drug Company," the main source of bootleg liquor during Canada's dry period.

The Hudson's Bay is also a front for the grand old families of the opium trade, the Inchcape and Keswick families, the proprietors, respectively, of the Peninsular and Orient Steamship Company, the world's (and the Far East's) largest shipping fleets, and Jar-dine Matheson, Hong Kong's dominant trading company. The 2nd Earl of Inchcape, whose son still runs the P&O lines, wrote the notorious 1923 Inchcape report advocating the continuation of opium production in the Far East to maintain British revenues. The number two man today at the P&O, Vice-Chairman of the board Eric Drake, sits on the board of Hudson's Bay.

Jardine Matheson's Sir William Johnston Keswick — the chairman of the Shanghai Municipal Settlements during the 1930s peak of Shanghai heroin traffic — only recently retired as a director of the Hudson's Bay Company.

William Johnston Keswick and Sir Eric Drake also sit together on the board of British Petroleum, next to Lord Humphrey Trevelyan, the chairman of the council of the Royal Institute of Inter national Affairs and Britain's charge d'affaires in Peking during the critical years 1951-53.

Drake is also a director of the top British merchant bank Kleinwort Benson. As noted in Section 7, Kleinwort Benson's whollyowned subsidiary Sharps Pixley Ward jointly runs the Hong Kong gold market with the Hong Kong and Shanghai Bank, a crucial support operation for the Far East drug traffic. Drake's fellow director, the deputy chairman of Kleinwort Benson, is Sir Mark Turner, of Rio Tinto Zinc. Rio Tinto Zinc, in turn, was founded by Matheson family money in the 1840s, and Mathesons ran Rio Tinto Zinc until the turn of the century. To complete the circle, William Johnston Keswick sits on the board of Jardine Matheson, along with several directors of Sir Eric Drake's P&O Steamship Company.

In other words, the Hudson's Bay Company, the most "Canadian" of companies, is run from the top by a combination of Far Eastern old-line drug traffickers and their closest London contacts.

The Hong Kong opium connection goes even further. Sir William Keswick's son, Henry Neville Lindley Keswick, a board member of the Hong Kong and Shanghai Bank, is also a director of MacMillan Bloedel, one of Canada's biggest pulp and paper operations, closely tied to the Macmillan publishing interests. The Macmillans took off as a Canadian family when Harold Macmillan—later British prime minister at the time of the Kennedy Administration — married the daughter of Canada's GovernorGeneral, the Queen's personal representative.

 

The Governor-General in question was the 9th Duke of Devonshire, Victor C.W. Cavendish, who held office 1916-20 at the outset of Prohibition; his son-in-law Harold Macmillan became his chief assistant in Canada in 1919, the same year that Arnold Rothstein set up the big liquor delivery contacts in England. The Governor-General's son William helped Joe Kennedy make-contacts among big English distilleries. The MacMillan interests started with Prohibition. Today, through their association with William Johnston Keswick — who personally ran the Shanghai heroin traffic during the 1930s — they are up to their necks in the drug trade.

Canadian Pacific Ltd., the biggest company in Canada, holds a controlling interest in MacMillan Bloedel.
 

Dope goes in, dirty money goes out

According to high-level Canadian intelligence sources, most of the heroin that reaches North America is flown in through Canadian Pacific Air. There is no "smoking gun" evidence to substantiate this, but a November 1978 trial in Vancouver reveals evidence that Canadian Pacific was involved in the smuggling of 22 pounds of cocaine from Hong Kong.

Figure 7 neatly traces the flow of heroin and dirty money in Canada: the drugs come in through Canadian Pacific and then are conduited to points south of the border. Heavily interlocked with the Western Canada connection is the Bronfman group, whose corporate center is Seagram, and whose financial center is the Trizec group. Since Prohibition, Seagram has handled the flow of smuggling into the United States (see Part III).

Both Seagram (and its old Prohibition rum-running partner, Hudson's Bay) are interlocked through a maze of contacts with all five of the big Canadian chartered banks: the Bank of Montreal, the Royal Bank of Canada, the Bank of Nova Scotia, the Toronto Dominion Bank, and the Canada Imperial Bank. Thus the dirty money gleaned from the drug trade is conduited through these banks to points further south: the banks' offshore centers in the Caribbean and from there the money makes its whirlpool round of worldwide laundering.

Canada's Big Five dominate all Canadian banking as fiercely as the British Big Four — Barclays, National Westminster, Lloyds, and Midlands — do in Britain. Unlike the United States, which has a relatively broadly spread base of regional banking, Canadian and British banking is run from the top by the institutions named. The Canadian institutions are barely distinguishable in their current practice from the British buccaneers who plied the Caribbean during the 17th century. Along with the British banks, which have numerous joint ventures with the Canadians — e.g., the Royal Bank operates in the Bahamas under the "RoyWest" cover in a joint venture with National Westminster — they are the core of the dirty money operations offshore of the United States.

The Royal Bank of Canada has 21 affiliates in offshore banking and subsidiaries — more than any other bank in the world save Barclays Bank. Royal Bank's "RoyWest" connection to the National Westminster Bank ties it closely to the Hong Kong and Shanghai bank itself; HongShang has two mutual directors with National Westminster, J.A.F. Binny and R.D. Dent. Dent is the descendant of the old-line British opium trading family that founded Lancelot Dent about the same time that Jardine Matheson appeared.

Among other links, the Royal Bank of Canada is tied to the Bronfmans through Neil Phillips — son of Lazarus Phillips, the Bronfman family's lawyer and most trusted aide from Prohibition until the 1950s.
 

CANADA'S SILVER TRIANGLE

Royal Bank has the dirtiest reputation of any bank in the Caribbean. According to authoritative diplomatic sources, the Royal Bank of Canada directly ordered the Guyanese government to plant marijuana in order to raise foreign exchange income. In 1976, when Guyana went flat broke and applied to the International Monetary Fund for emergency assistance, Royal Bank of Canada officials met with senior members of the Guyana government. The Royal Bank insisted that Guyana transform its economy into a "cash crop" producer before it, or any other major bank, would issue loans. The Guyanese were desperate and did what they were told. Northwest Guyana, in consequence, has become a major producer of marijuana for the North American market.

Second in the Caribbean offshore centers to the Royal Bank is the Bank of Nova Scotia — Walter Lockhart Gordon's bank. A top Bronfman aide and figure in Canadian Zionist organizations,

R.D. Wolfe, sits both on the board of Seagram and the Bank of Nova Scotia. Scotiabank has 13 branches in offshore centers, as well as innumerable joint ventures and similar fronts.

Banking and diplomatic sources agree that the Bank of Nova Scotia is the number one handler of flight capital out of Caribbean countries, especially troubled countries such as Jamaica. Apart from funds fleeing difficult political situations, much, if not most, of all illegal money transfers out of the Caribbean. A large portion of Jamaican illegal funds are conduited through a Jamaican national currently employed in a senior position at the big New York brokerage house Drexel Burnham Lambert. (2)

Scotiabank's Jamaican trade is a particularly filthy business, since it involves shifting funds earned in Jamaica by local criminals into safe havens. The cash side of the Jamaican operations, according to law enforcement sources, is done more with arms than drugs. Planes fly into Jamaica with loads of small arms, and take loads of marijuana out. The retail side in Jamaica is arms selling. The ultimate cash proceeds of the selling chain are then laundered through Scotiabank.

The Bank of Nova Scotia's role in Canadian gold markets, through its own trading operations and its interlock with the chairman of the second-largest Canadian gold trader, Noranda Mines, was already noted in Section 4. According to informed New York gold market sources, a substantial proportion of Nova Scotia's flight capital operations are accomplished through illegal purchases of gold by Jamaican and other nationals.

The same sources add that Dr. Henry Jarecki's Mocatta Metals in New York (see Section 4 again) has a substantial share of Caribbean dirty money traffic.
 

The Canada-Peking connection

The starting point of any examination of Canadian drug traffic is Walter Lockhart Gordon's close relationship to Canadian Pacific. Gordon is Canada's grand old man, Honorary Chairman of the Canadian Institute of International Affairs for Life, top leader of the ruling Liberal Party, finance minister after 1963, and chief foreign policy-maker in Canada for the past 30 years.

Gordon sits on the board of directors of Canadian Pacific and the Bank of Nova Scotia; his accounting firm, Clarkson and Gordon, handles the accounts of the Bank of Nova Scotia, Toronto Dominion Bank, and Canadian Imperial Bank.
 

THE GO BETWEEN

Authoritative Canadian intelligence sources further identify Gordon as the controller of Canada's three leading China specialists, Paul Lin, James Endicott, and Chester Ronning, whom we met earlier in Section 7. The association goes back in the cases of Endicott and Ronning to the end of World War II, when the two returned from close collaboration with Chou En-lai, to become the core of the transplanted Institute for Pacific Relations in Canada.

Based in Montreal, Paul Lin is the go-between for Walter Gordon and the Vancouver, British Columbia drug wholesaling and transshipment operations. Lin's most important contact is the former president of drug-shipping Canadian Pacific, John D. Gil-mer. Gilmer is a Knight of St. John of Jerusalem, and the patron of People's Republic of China fronts on Canada's West Coast. Paul Lin is his personal attorney.

In turn, Gilmer is the attorney for two open representatives of the People's Republic of China in Vancouver, B.C., the Chinese Commercial Corporation and the Chinese Cultural Center. The Chinese Cultural Center in Vancouver receives funding from an-other Knight of St. John, John Robert Nicholson, a close associate of Gilmer.

Both Gilmer and Nicholson are major funders of the Simon Fraser University in Vancouver, which became the home of the Institute for Pacific Relations after it was driven out of the United States. Paul Lin's brother, Dr. Tsing Lin, is currently employed at the Institute for Pacific Relations. All these men have been working together since the Institute for Pacific Relations, as detailed in Section 7, served as the Royal Institute of International Affairs bridgehead into the United States, and Chester Ronning was meeting weekly with Wang Ping-nan and occasionally with Chou En-lai in Chungking.

Endicott, now an old man, created the leading North American center of explicit Maoism, the Norman Bethune Institute at York University. Walter Gordon was the university's chancellor for many years. Gordon personally arranged the funding of the Bethune Institute, named after a Canadian doctor who served in Mao's armies.

Gordon's accounting firm Clarkson and Gordon tries to keep its nose clean of overt involvement in the drug trade. But one of its escapades caused a public scandal in Canada five years ago. Clarkson and Gordon put together the funding for Rochdale College in Toronto, an experimental university that quickly became the most drug-ridden college campus in Canada. By the early 1970s Rochdale College had become not only a main center of illegal drugs consumption, but also the retail distribution point for marijuana and hallucinogens throughout most of Eastern Canada. When the story inevitably became headline material in the early 1970s, Canadian police were compelled to shut it down, as a matter of public decency.

Clarkson and Gordon, who had created Rochdale College, sadly took the drug-ridden remnant back, acting as its receiver and liquidator.
 

Who rules Canada

But the company to which Gordon is closest is Canadian Pacific, which controls most of the dominion's air, sea, and land transportation. It has directors in virtually every industry it does not control.

Figure 7

Drug-Running—The Canadian Connection
*Far East Opium Runners
 

As the accompanying chart demonstrates, it is interlocked three ways with Seagram Ltd., the core of the Bronfman group. The chart only shows a handful of Canadian Pacific's links to the five major chartered banks; no fewer than 14 of its directors sit on their boards.

Most important, Canadian Pacific features no fewer than four members of the Most Venerable Order of St. John of Jerusalem on its board. They include the aforementioned J.C. Gilmer of Vancouver, the angel for every Maoist front in the city; W.E. McLaughlin, the chairman of the board of the aforementioned Royal Bank of Canada; and J.P.W. Ostiguy.

Only one other corporation in the world, Barclays Bank, contains more members of the British monarchy's most elite order among its directors. That fact alone establishes Canadian Pacific's vassal-hood before the feudal rights of the British monarchy. In terms of Canada's real chain of command, it is an honor for Charles R. Bronfman to sit on Canadian Pacific's board.

The concentration of Knights of Malta on the council of the Canadian Pacific Company also clears up — from a professional intelligence standpoint — why that company has special access to the Far Eastern narcotics traffic. The chairman of the board of the Hong Kong and Shanghai Bank from 1962 to 1970 was Sir Michael Turner. When the current chairman, M.G. Sandberg, replaced Turner in 1970, he remained on the "London Committee" of the HongShang (as well as the board of directors of National Westminster Bank, with two of his fellow HongShang directors).

Sandberg was created Commander of St. John, a high-ranking position in the elite order, in 1960. He is still the chairman of the Council of St. John — the organization of the Knights — in Hong Kong. The company most under the direction of the Knights of Malta in Canada deals directly with the chief of their order in Hong Kong.

At the other end of the Canadian drug cycle, the dirty money banks, each of the five Canadian dirty money banks has at least one Knight of Malta on its board. The Canadian Imperial Bank and the Bank of Nova Scotia are directed by three Knights of Malta each.

In addition, there is no question that the Canadian Institute of International Affairs — which has picked every Canadian foreign minister of this century — is not a Canadian institution, but the local branch of the British monarchy's most elite chivalric order. Canada's former Governor-General, Roland Michener, and current chairman of the CIIA is also a Knight of St. John. A board member of the Italian branch of the Order of St. John, the Order of St. Lazarus, is a member of the CIIA's board, Henry R. Jackman. J.J. Jodrey, another board member, is also a Knight of St. John.

The Order of St. John respects the same chain of command as do Canada's Governor-General and Privy Council: the Queen of England, who is the titular head of the Order, and the Queen's cousin, the Duke of Gloucester, who is Grand Prior to the Order. These men control the finances and logistics of Canada's economy. Through a series of "cutouts," like the Bronfman family, they also control the drug-running, the organized crime, and the political terrorism directed against the United States.

There has been little effective challenge to their rule of these forces in Canada since 1910, when then-Prime Minister de Laurier attempted to organize a counterweight from within the British dominions, including support from then Prime Minister of South Africa, Botha. Lord Milner, whom we profiled earlier in Section 7, traveled to Canada in 1908 to avert what would have been a catastrophe in the eyes of the British monarchy.

Milner's visit, which founded the Canadian Round Table Group — the mother organization of Walter Lockhart Gordon's Canadian Institute of International Affairs — was ultimately successful. Robert Borden, a Milner protégé, replaced de Laurier in 1910, and Canada was secured for the Prohibition offensive against the United States. Robert Borden's descendant Henry Borden still sits on the Council of the Canadian Institute of International Affairs.

The project is best summarized in a letter that Rudyard Kipling, the swastika-wielding racist who helped found Canada's Institute of International Affairs, wrote to Lord Milner after the de Laurier initiative failed:

"This busts the de Laurier-Botha liaison," Kipling wrote, "in what are called our Imperial Councils. Additionally, Australia will be deprived of big sister's (i.e. Canada's — ed.) example as an excuse for nibbling after American 'protection' on her behalf... and I do believe it smashes French power for good. Seriously, don't you think it's the best thing that's happened to us in ten years? Also, we've worked very hard for it." (3)

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