host of the KZYX radio program "Takes on the World," interviews Grant
F. Smith about the
forthcoming book Divert! NUMEC, Zalman Shapiro and the Diversion of US
Weapons Grade Uranium into the Israeli Nuclear
Smith traces how covert
Haganah conventional arms smuggling operations by Israel and US supporters
in the 1940s led to the establishment of a front company for nuclear materials theft
by 1956. NUMEC was a US corporation established
in Apollo, PA to secretly supply material to Israel's
clandestine nuclear weapons program.
Newly declassified files reveal how the FBI kept
tabs on Shapiro, NUMEC's president,
David Lowenthal, a key venture capitalist, and
top Israeli spies and
nuclear weapons scientists
Shapiro invited to visit. NUMEC is
now subject to a
$170 million environmental cleanup. The Department of
Energy still lists 269 KG of NUMEC's bomb-grade material as "unaccounted
for" the highest loss in US
WASHINGTON, Dec 13, 2011
(BUSINESS WIRE) -- Following a three year Freedom of Information Act
battle, US Trade Ambassador Ron Kirk has been forced to publicly release
a secret report about America's first bilateral trade agreement. The
1984 report predicted which US industries would be most harmed by
massive trade preferences for Israel.
In 2009 the Institute for Research: Middle Eastern Policy (IRmep), a
Washington nonprofit that works to improve policy formulation, sought
public release of the report. The USTR refused. IRmep appealed to an
outside review panel arguing that declassified FBI files revealed both
the Israeli government and American Israel Public Affairs Committee
unlawfully obtained the report in 1984. A declassified FBI investigation
uncovered AIPAC's receipt of the report from Israel's Economics
Minister, who refused to divulge how he obtained it. IRmep successfully
argued that Americans most harmed by the data theft should also have
access to the report.
The lobby justifies the
campaign based on unsubstantiated allegations that Iran is pursuing
nuclear weapons although no evidence from credible sources has emerged.
Less well known is that Israel and its lobby frequently deploy tactics
from same menu of economic warfare — such as capturing assets — against
the United States. Newly declassified documents extracted from a very
reluctant US Trade Representative are a case in point.
In 1984 the captured assets in question were also of the intangible
variety — trade secrets, strategies, and classified industry data. The
victims were more than seventy US corporations and business
organizations that responded to US International Trade Commission
solicitations in 1984 to participate in negotiations that would open the
US market to Israeli exports. After delivering up their confidential
business data in opposition to the preferences, participants were
appalled that the Israeli government pilfered all the USTR’s classified
report and passed it to AIPAC to lobby against US industries. But what
made this captured US intellectual asset so valuable and timely? After a
multi-year battle that began in 2009, the US Trade Representative was
finally forced to publicly release (PDFs) the majority of the secret
report surreptitiously obtained by AIPAC decades ago. The secret
document reveals all.
DC. - A newly declassified US Department of State report obtained by the
Institute for Research: Middle Eastern Policy (IRmep) reveals how
political infighting and turf battles undermined efforts to reign in
illicit Israeli transfers of sensitive US military technology. In March
of 1992 US State Department inspector general Sherman Funk issued his
"Report of Audit" about efforts to stem illegal Israeli transfers of US
military technology. The report found Israel "is systematically
violating U.S. arms control laws." America's "Blue Lantern" system
conducted in-country inspections by deploying Customs officials and
other qualified US embassy personnel to verify that "sensitive U.S.
Munitions List items and technology are used only for authorized
audit uncovered a breakdown in US inspection regimes within Israel. The
State Department relied on "government to government" assurances that
items were not "retransferred" or "used for unauthorized purposes."
Shipments to non-government entities could only be checked if Israeli
government officials granted permission.
Funk found this trust-based approach to be wholly inadequate. "After
reviewing the end use procedures, we stated to post officials that
relying entirely on government-to-government assurances is an inadequate
verification procedure. This is especially true for a country which,
according to numerous intelligence reports, is systematically violating
U.S. arms control laws."
MoreNewly Declassified Audit
US Army Corps of Engineers (USACE) has just stopped its $170 million
nuclear waste dump cleanup at a former Nuclear Materials and Equipment
Corporation (NUMEC) site in Pennsylvania. In the early 1960s NUMEC
established a plutonium facility in Parks Township, disposing of waste
in a large field adjacent to the plant. NUMEC's waste site was
staggeringly inappropriate. According to Atomic Energy Commission
surveys and more recent USACE studies, groundwater flows freely
throughout the dump at levels where waste resides. Further below the
surface, a warren of coal mine shafts from the early 20th century
creates the possibility of toxic seepage and sink-holes.
According to what the USACE knows, a contractor failed to inspect the
contents of a 55 gallon drum holding radioactive waste before moving
it. What nearby residents, contractors and USACE engineers don't know
could pose an even greater hazard--and the US Central Intelligence
Agency may be in a position to provide a remedy.
According to newly declassified FBI files [PDF] NUMEC's venture
capitalist David Lowenthal and founder Zalman Shapiro knowingly failed
to comply with even the lax AEC standards in force in the 1960s for
handling radioactive waste at NUMEC. A FBI wiretap placed on David
Lowenthal's phone picked up shocking news of a major illicit radioactive
spill on May 5, 1969. Lowenthal and Shapiro were both under
investigation for diverting to Israel enough HEU to build more than a
dozen atomic weapons. Shapiro and Lowenthal were in the midst of their
"exit strategy;" selling NUMEC to Atlantic Richfield which would (along
with successor Babcock & Wilcox and then American taxpayers) be left
holding the bag for massive future cleanup and health indemnity costs...
MoreAntiwar Radio Interview
DC: Recently declassified wiretap transcripts of conversations between
Nuclear Materials and Equipment Corporation (NUMEC) founder Zalman
Shapiro and venture capitalist David Lowenthal reveal that illegal
storage practices led to a dangerous nuclear spill. Obtained under the
Freedom of Information Act by IRmep's Center for Policy and Law
Enforcement, the files were heavily censored by the Central Intelligence
Agency which blocked release of 225 pages.
http://www.irmep.org/ila/numec/08292011lowenthal.pdf, details that
Shapiro and Lowenthal's interest in completing NUMEC's sale to Atlantic
Richfield Company outweighed public safety concerns. The FBI and CIA
investigated Shapiro and Lowenthal in the 1960s under suspicion of
diverting highly enriched uranium (HEU) from NUMEC into the clandestine
Israeli nuclear weapons program. For decades the CIA has blocked
release of its files and equity content in other government agency
reports about NUMEC...More
the Israel Lobby Archive releases declassified Justice Department
documents that shed light on how US based covert operatives for Israel
obtain near complete prosecutorial immunity.
After leaving the
Nahum Bernstein quickly deployed his covert operations skills for Israel
by forming front organizations to smuggle arms and wire-tap opponents in
the United States. Mastermind Bernstein escaped the felony charges and
prison sentences awaiting lower level operatives through his
prosecutorial immunity network which stretched from New York City police
officers on his payroll, his District Attorney law partner, up to the
President of the United States (through associate Abraham Feinberg).
Bernstein's declassified file, like associate
sheds light on the model by which subsequent US operatives entered the
Israel lobby's prosecutorial immunity network. More
September-October 2011 Washington Report on
Middle East Affairs
the surface the Justice Department's (DOJ) recent criminal complaint
against associates of the nonprofit Kashmiri American Council (KAC)
seems like a legitimate application of the 1938 Foreign Agents
Registration Act. FARA requires individuals or organizations lobbying on
behalf of a foreign principal to periodically disclose their activities
and programs in a publicly accessible office. The KAC indictment appears
to be a form of U.S. pressure on Pakistan over its performance in the
so-called "war on terror."
As Confucius might say, however, it is "interesting" to compare the
Justice Department's application of FARA to Israel's foreign agents—who
have caused far more damage to the U.S. than Pakistan could ever even
...Today, the AZC is still with us, as reconstituted into AIPAC—which,
along with other parastatal Israeli foreign agents, are beginning to
ramp up a new campaign to provoke the United States into attacking
Israel's current arch-nemesis, Iran. Meanwhile, the DOJ is sailing the
wrong seas, using its FARA harpoon to hunt guppies rather than far more
A complaint filed today with the IRS and Justice Department charges the
American Israel Education Foundation (AIEF) is a "sham" charitable
organization of the American Israel Public Affairs Committee. The AIEF,
a 501(c)(3) nonprofit corporation which reported $26.3 million in 2009
revenue, is housed in the same facilities as AIPAC. AIPAC was
incorporated as a domestic lobby in 1963 by a former Israeli Ministry of
Foreign Affairs employee, six weeks after the Justice Department ordered
its parent organization, the American Zionist Council, to begin
registering as an Israeli foreign agent.
AIEF recently paid expenses for more than 80 members of Congress to
recess, but does not disclose planned activities or educational
"an amazing organization of which no one has ever heard…It's amazing
that someone hasn't filed suit to stop this charade."
According to the 29 page IRmep Center for Policy and Law Enforcement
filing, AIEF meets the IRS definition of an AIPAC "sham corporation"
some point, Douglas Bloomfield needs to explain to Americans why
classified, business confidential information submitted by
American companies *opposed* to the US-Israel bilateral trade
deal—using it against their legitimate concerns. This act
gravely violated their due process rights. It was not part of
any "game."When the USTR ordered AIPAC to return the classified document,
to what he told the FBI) made an illegal photocopy of the
...the prejudicial agreement has
been entirely one-sided in terms of benefits, which could be
expected given the forces arrayed against the US industries and
groups opposed on a variety of grounds. And yet Bloomfield has
that gall to lecture America about spying. I think there's a
descriptive word for that...
had only assumed AIPAC’s phones were being tapped until we got a
visit from a job seeker claiming to be a Pentagon intelligence
officer. He told my boss, one of my colleagues and me that our
office phones, our home phones and probably our cars were bugged
and that signals could be bounced off our office windows from
several blocks away to listen in on conversations in any room
with an outside window. (It didn’t occur to us to ask “So why
are you sitting here in front of the window telling us all
this?”)...When the Times reporter called me about the story, I
told him, “I am not surprised at all to learn that the F.B.I.
was listening to the Israelis. But I don’t think it’s a wise use
of resources because I don’t see Israel as a threat to American
American Israel Education Foundation (AIEF), which organizes the
aforementioned Congressional delegations to Israel, is not a separate
entity from the lobby group American Israel Public Affairs Committee (AIPAC).
The groups share the same offices, have overlapping boards of directors,
share equipment, mailing lists, etc. They have the same Chief Financial
Officer; the managing director of AIPAC is also the principal officer of
AIEF. Funds are constantly transferred from one entity to another.
According to the latest publicly available AIEF tax returns and AIPAC
tax returns in 2009, AIEF funneled $13.5 million into AIPAC for
"education". This means that the supposedly tax-exempt group AIEF is
financing a non-tax exempt 501(c)4 lobbying organization.
The money and services
flow the other way as well, from AIPAC to AIEF. With the massive amount
of work involved in organizing these large congressional delegations, it
is indeed strange that AIEF has no paid employees. That is because the
work is done by AIPAC-paid staff. According to AIPAC’s tax return, in
2009 AIPAC contributed more than $3.2 million of employee salaries to
cover the staff costs of AIEF. In other words, a 501(c)(4) organization
with registered lobbyists is paying for the staff of a 501(c)(3)
organization to run congressional delegations that cannot legally be
funded by an organization that employs registered lobbyists.
According to the House Ethics Manual Chapter 3 on travel,
congressmembers and staff are prohibited from participating in any
multiple-day trip that was planned, organized, requested, or arranged by
a lobbyist. AIPAC is a registered lobby group.
The travel provisions prohibit Members and staff from accepting travel
from a private source if the official will be accompanied by a lobbyist
on “any segment” of the trip (House Rule 25, clause 5(c)(1)(A). Staff
paid for by AIPAC accompany members on these trips.
In the 2007 Honest Leadership and Open Government Act (HLOGA), an
exemption for 501(c)(3) organizations was written into the Senate rules,
but the House declined to add this loophole into its ethics rules. Even
if there were such a loophole in House rules, which there isn’t, AIEF
would not fit because it is simply the 501(c)(3) wing of the lobby group
Craig Holman, government ethics lobbyist for Public Citizen.
Grant Smith, director of Institute for Research: Middle East Policy.
...For fiscal year 2006, AIPAC’s top contributor gave $650,000. The rest of
AIPAC’s “Schedule B” donors gave on average $16,772 each. The list of
$5,000-plus donors numbered just over 1,700 individuals, so numerous
that AIPAC had to attach a separate spreadsheet to its return [.pdf].
This large group of donors represented the majority (56 percent) of
AIPAC’s total claimed direct public support. If we assume AIPAC had
approximately 50,000 paying members that year, the rest gave $464 each
for a total of $50,920,792 in public support.
According to the special IRS release of AIPAC’s 2009 Schedule B [.pdf]
there were only two $5,000-plus donors. Donor number one gave
$48,842,187. Donor number two chipped in $13,503,472. This means small
donors contributed only $2,261,755 for total year 2009 public support of
$64,607,414. The IRS confirms that there is no additional 2009
spreadsheet attachment of $5,000-plus donors as in 2006. AIPAC is now
telling the IRS that it has only two meaningful donors...More
On July 22, 2011 the Institute for Research: Middle Eastern Policy won a
major victory toward public release of a classified document illegally
obtained by the Israeli government and passed to the American Israel
Public Affairs Committee. According to the Interagency Security
Classification Appeals Panel (ISCAP) announcement,
"The document came before the ISCAP classified in its entirety.
The ISCAP voted unanimously to declassify some portions and affirm the
classification of other portions of the document..." The US Trade
Representative, which blocked release under the Freedom of Information
Act, now has 60 days to appeal the ISCAP decision to the
President. IRmep argued to ISCAP that the document was originally
classified to protect American industry secrets, and that the main
parties it was meant to be kept from illicitly obtained it almost immediately.
(For the whole story, see "Spy
Trade: How Israel's Lobby Undermines America's Economy.")
In a separate initiative, IRmep is seeking $6.4 billion in damages for
victimized US industry and workers groups.
According to IRmep director Grant F. Smith, "Even partial release should
clear away a major hurdle to direct industry litigation against both AIPAC and
the Israeli government for billions of dollars in damages tied directly
to their possession of this stolen document."
...There is another way, which is to use institutional subterfuges and
the sheer clout of the lobby itself to escape prosecution under the FARA.
The Israel lobby has managed to do this. Today's American Israel
Political Action Committee
origins in the lobbying arm of a predecessor organization, the
American Zionist Council, which was directly funded by the Jewish Agency
of Israel. In the early 1960s the AZC came under pressure from the
Kennedy Justice Department to register under the FARA. The issue became
the subject of an inquiry by the Senate Foreign Relations Committee,
chaired by J. William Fulbright. Shortly after this pressure began, the
chief AZC lobbyist established an ostensibly new and separate
organization, which was AIPAC. Sometimes the issue has arisen whether
AIPAC itself ought to register under the FARA, but each time the lobby's
own political power—greater now than in Senator Fulbright's time—has
been sufficient to stifle any moves in that direction. An objective
inquiry into this subject such as Fulbright initiated would be
unthinkable on Capitol Hill today...More
McMahon, Managing Editor - Washington Report on Middle East Affairs
explains the history and impact of "stealth PACs." Why has the American
Israel Public Affairs Committee spawned a network of PACs across
America? Why don't any claim affiliation to their creator or use
descriptive names? Shouldn't they be consolidated to have reduced total
contribution limits like other PACs? How has the American Israel Public
Affairs Committee secretly coordinated stealth PACs, and what has been
done about it? Presentation panel from the
Move Over AIPAC
conference on May 21, 2011.
Two recent letters to
the editor raise the question of whether AIPAC is a political action
committee donating to U.S. political candidates. This is not a simple
It is well documented that in the 1980s AIPAC was instrumental in
setting up a network of PACs across the United States, delivering kits
to interested groups of donors. These PACs have traditionally disguised
their true purpose, operating under names such as “Icepac” and “South
Bay Citizens for Good Government,” obscuring that they are really
single-issue PACs donating to put Israel supporters into office. This
earned them the name “stealth PACs” in a book examining their curious
long-term donation coordination.
In 1988, the Washington Post published an internal memo from AIPAC
deputy legislative director Elizabeth Schrayer directing an assistant to
contact stealth Israel PACs and give specific dollar amounts to specific
political candidates. The memo is at
Today, AIPAC publishes voter guides and other communications that leave
no doubt as to who the preferred AIPAC candidates are. The relevant
question is, does AIPAC influence the flow of donations to U.S.
candidates for office? Obviously it does.
The other question is why the network of stealth PACs is allowed to
operate as if they were truly separate (each with a $5,000 per candidate
contribution limit) rather than one big Israel PAC (with a combined
$5,000 limit) directed by AIPAC. Other industries, such as Realtors,
don’t divide and hide like stealth PACs do.
Antiwar Radio host Scott
Horton podcast an interview with IRmep director Grant F. Smith about his
essay, "AIPAC Pushes Hard for War with Iran...But Doesn't Want the
Blame." They discuss Keith Weissman's breaking of his media silence to
(badly) defend AIPAC, claiming there is no official program for regime
change in Iran, how the US forgoes a necessary waiver when sending aid
to Israel -- required for all foreign countries with clandestine nuclear
programs, how AIPAC uses leverage on domestic US issues (like National
Guard base upgrades) to get their way on foreign policy issues, and the
difference between Rosen/Weissman/Franklin espionage and Bradley
Former AIPAC staffer
Keith Weissman, indicted in 2005 under the Espionage Act alongside
colleague Steven J. Rosen and Defense Department employee Col. Lawrence
Franklin, is desperately worried. In a lengthy, rambling monologue
delivered to independent reporter Robert Dreyfuss, Weissman breaks a
long silence to declare he’s “concerned that if a confrontation between
the United States, Israel, and Iran leads to war, it will be a
disaster—one that Weissman fears will be blamed on the American Jews.”
It is telling, but unsurprising, that Weissman—through
misrepresentations and false dichotomy—exhibits little concern for the
broader potential consequence of war. Fortunately, his tired arguments
are in a final lap toward oblivion...
...the only frame more absurd than AIPAC’s claim to represent “the
American Jewish community” is analyzing the Israel lobby from a
“right-left” perspective. While AIPAC delights in creating an ongoing
Democratic/Republican race for candidates to trot out their “pro-Israel”
credentials, American taxpayers and voters are always the losers.
Founder Isaiah L. Kenen gloated about roping The Nation Magazine
Associates into his earliest Israel propaganda campaigns. There’s been
even more noise of late as various progressive pundits and policy posers
rush to carve out new positions in front of growing crowds of Americans
outraged about the Israel lobby—now that it’s been fully flushed out in
the open by Mearsheimer and Walt. But many progressive policy barkers
continue to flog their skeptical acolytes with expired brands of snake
oil—that everything of importance is really just a
battle for influence over Israel and Mideast policy.
Washington, DC. Today the
Section 301 Committee of the US Trade Representative formally received a
petition demanding $6.64 billion in compensation for US exporters. In
1984 US exporters were urged to submit business confidential data about
their prices, market share, internal costs and market strategy to the
International Trade Commission. The USTR guaranteed confidentiality and
compiled the data into a classified report for use in negotiating the
US-Israel Free Trade Agreement...
The petition recommends the $6.64 billion be
proportionally divided between nearly 80 US organizations according to
their trailing 10 year revenues. If the Israeli government will not pay
damages directly, the petition recommends the US implement a five year
import duty over all Israeli exports to the United States to generate
Book reviews of Start-Up Nation by Dan
Senor and Saul Singer (Hachette Book Group, 2009) and Spy Trade by Grant
F. Smith (Institute for Research: Middle Eastern Policy, 2011).
In the extremely well researched, easily readable, and meticulously
documented hundred and twenty-five page book, Spy Trade (How Israel’s
Lobby Undermines America’s Economy, Grant F. Smith paints an entirely
different picture of Israel from its unilateral inception to the current
In this must read short book for understanding the dysfunctional US
foreign policy in the Middle East and the rest of the world, Smith ends
it with: "The Israel lobby has an enduring value system that is both
alien and harmful to America, handed down from the Sonneborn Institute
and Haganah through the Jewish Agency’s American Section and American
Zionist council to AIPAC: that no crime is punishable if it advances the
cause of Israel. Only when the broader American public becomes fully
aware of how the Israel lobby’s value system is slowly corrupting and
bankrupting the nation will the call for long-overdue law enforcement
finally be heeded."
Reagan didn’t find AIPAC
a fitting venue for a president. He clearly could have attended, but he
chose not to. On March 25, 1988, Sen. Richard Lugar pitched the White
House on behalf of AIPAC. “They are (of course) very anxious to have the
president. These are sophisticated and informed folks (who know what RR
has done for the relationship), and I am told the chief will get a
tumultuous welcome….” House Republican Leader Robert H. Michel noted
that “apparently he [Reagan] has never talked to them specifically, and
this would be the last year for this one also.” Frederick J. Ryan, in
charge of presidential appointments and scheduling at the White House,
also urged attendance. “Despite the fact that the AIPAC has opposed
various administration efforts to sell arms to Arab countries, this
would be an event worth doing. … I have no doubt that he will be hailed
by this most powerful of Washington lobbies as the truest friend of
Israel ever to sit in the Oval Office.” When Reagan died, AIPAC
reaffirmed this sentiment, gushing about how a president so committed to
American welfare reform placed Israel on the dole of U.S. taxpayers and
consumers. “Under President Reagan, the U.S. Israel Free Trade Agreement
was signed in 1985. … Additionally, under President Reagan’s leadership,
America’s foreign assistance to Israel matured into the form it
currently takes today. No longer composed of loans and grants, Israel
today receives all of its economic and military assistance from the
United States in grants.” Reagan ultimately tasked Max Green of his
Office of Public Affairs to craft a presidential message for AIPAC in
his stead. But why?
Excerpt: ...The year 2011 is remarkably similar to a
tipping point catalyzed by misdeeds that took place a half a century
ago, when a coalition of fed-up Americans finally laid down the gauntlet
and insisted on rule of law in America, breaking the back of AIPAC's
...In 2011, AIPAC is the number one obstacle to those seeking
peace in the Middle East. Today the lobby launders with impunity
purloined US national defense information, rather than overseas
charitable funds, to undermine peace. It has forced concerned Americans
of many stripes, liberal to libertarian, foreign policy novices to pros to rekindle the spirit of the 1960s AZC accountability moment by again
gathering in Washington May 21-24 at
Move Over AIPAC.
Today the Israel Lobby Archive releases two
declassified documents detailing sensitive Senate-IRS correspondence
about Israel lobby tax exemptions and violations.
The Senate Foreign Relations Committee
recommended an Israel (and
other foreign lobby) investigation to the IRS
and asks for tax exempt examinations. The Senate submits
investigatory evidence that AIPAC and its parent organization the AZC
are laundering overseas tax exempt funds into US lobbying and public
relations. The AZC was at the time under a Justice Department
order to register as a foreign agent.
IRS responds with
tax information and analysis, noting that AIPAC had never applied for
exempt status while refusing to revoke its parent's
(the AZC's) status. The AZC
later shuts down under the weight of a Justice
AIPAC: The Next Enron? Sibel Edmonds, Peter B. Collins, and Grant F. Smith discuss a
range of illegal Israel lobbying and espionage activities, the dangerous
recommendations in the book Start-Up Nation by
Senor and Singer, and why the 1985
US-Israel bilateral trade agreement is really a $10 billion/year private-industry funded foreign aid program.
Edmonds and Smith also discuss the importance of attending
Move Over AIPAC.
US Department of Treasury has no program to combat massive flows of US
tax-exempt charitable contributions into illegal settlement building.
Despite ongoing public revelations of wrongdoing, the Office of Foreign
Assets Control (OFAC) has never investigated or even discussed US
charitable organizations with proven ties to rampant illegal settlement
building in the West Bank...
2005 USA Today cited then vice premier Shimon Peres estimating that
Israel had spent approximately $50 billion on settlements since 1977.
Other quoted Israeli government officials put the figure closer to $60
The US Treasury Department finally responded to a September 27, 2007
Freedom of Information Act request and appeals filed by the Institute
for Research: Middle Eastern Policy, IRmep. Mailed April 13, 2011
Treasury claims making a "comprehensive search of files" stating:
"Unfortunately, we were unable to locate or identify any responsive
records pertaining to...internal reports about Treasury Department
investigations triggered by public revelations that U.S. charitable
funds flows are used to illegally confiscate Palestinian lands and
commit crimes overseas…Meeting minutes of key Treasury Department
officials charged with combating money laundering conducted in Israel
and the U.S. dealing with the Sasson report money laundering issues
especially those with a focus on U.S. … organizations managing WZO money
April 2011 Washington Report on
Middle East Affairs
that AIPAC motion, Rosen finally dropped all pretenses, flatly promising
Washington Post reporter Stein, "I will introduce documentary evidence
that AIPAC approved of the receipt of classified information." Rosen
then documented a two-decade span of intelligence collection to back up
his claims. AIPAC obtained a "secret National Security Decision
Directive #99 calling on the Armed Services and Secretary of Defense to
explore the potential for stepped-up strategic cooperation." AIPAC
gleaned classified annual reports of secret U.S. arms transfers. AIPAC
skimmed classified law enforcement files about North African financial
transfers to African-American political activists, which it then used to
discredit Jesse Jackson's presidential campaign. AIPAC suctioned up
classified U.S. intelligence about Khartoum. An AIPAC board member
funneled classified raw U.S. signals intelligence into a lobbying
effort, while another AIPAC employee solicited and received classified
information about secret U.S. understandings with Saudi Arabia.
In his final desperate courtroom maneuvers, Rosen even filed several
declassified FBI documents detailing a 1984-1987 investigation into a
joint AIPAC/Israeli Embassy effort to obtain and leverage confidential
U.S. business information in order to secure non-reciprocal trade
preferences for Israel. (These documents were first obtained under the
Freedom of Information Act in 2009 for the book Spy Trade: How Israel's
Lobby Undermines America's Economy.)
Espionage, Politics, Secrecy, Myths and the US-Israel Free Trade Area
Author Grant F.
Smith will discuss his 2009 book Spy Trade about myths and realities of
U.S.-Israel economic relations. The April 6 presentation begins at 5:15
PM, room 1101, Dewey Hall, on the University of Rochester Campus.
Last year marked the 25th anniversary of the U.S.-Israel Free Trade Area
(USIFTA). Documents newly declassified in 2009 reveal a stunning
1984-1987 FBI investigation of Israeli embassy and American Israel
Public Affairs Committee (AIPAC) activities that compromised the
position of U.S. industry and worker groups while undermining the
legitimacy of the trade negotiating process.
Ongoing intrigues involving pharmaceuticals, proprietary weapons
technologies (including nuclear weapons related materials) and stiff
market barriers have continued—frequently landing Israel on the U.S.
Trade Representative's punitive "watch list."
During his presentation of public and newly declassified aspects of
USIFTA negotiations in 1984-1985, Smith will offer a comparative review
of the trade agreement's performance. Smith will also challenge facts
and representations made by author Dan Senor
in the February 23 campus presentation of his book "Start-up Nation: The
Story of Israel's Economic Miracle." This
event is sponsored by the undergraduate Finance and Economics Council to
provide equal time to opposing views on important issues. Seating is
Nation: The Story of Israel’s Economic Miracle is a 2009 Council on
Foreign Relations book brimming with anecdotes, assumptions, and advice.
Dan Senor and Saul Singer explain Israel’s entrepreneurial successes as
products of Israeli national character through pithy quotes, high-tech
case studies, and selective histories. The pair recommends America
become more entrepreneurial by replicating Israel’s conscription based
national service model. But the authors’ foray into the economics of
national entrepreneurship and innovation utterly ignores the demand side
of this equation — Americans who increasingly view Israel more as a
liability than asset — at their peril...
Nation airbrushes one vital and enduring truth — when Israel faces
sovereign barriers to foreign trade routes, weapons, or technology; it
tends to break other country’s laws and steal what it thinks it needs.
Ever sensitive to Israel’s righteousness, members of the massive Haganah
arms theft and smuggling ring in the US in the book were merely David
Ben-Gurion’s "emissaries" to America, not felons violating US arms
export laws. Theft of French Mirage jetfighter plans stolen to build the
Israeli Kfir were justified to correct Charles Degaulle’s arms embargo,
a "betrayal by a close ally." Al Schwimmer, a felon convicted for
violating US arms export controls that went on to become a player in the
Iran-Contra scandal, is a "swashbuckler" in Start-up Nation.,,
files released under the Freedom of Information Act unveil new
details about the life of influential lobbyist Abraham Feinberg
(1908-1998). Feinberg is best known for funding President Harry S Truman's
"whistle stop" campaign, saving Truman's 1948 election campaign
from almost certain defeat. In an interview, Feinberg summarized
his long success in Democratic Party politics: "My path to power
was cooperation in terms of what they needed—campaign money."
According to new histories of Israel's clandestine nuclear
weapons program including "Israel and the Bomb" by Avner Cohen
(1998), Israeli Prime Minister David Ben-Gurion secretly named
Feinberg his chief nuclear weapons fundraising coordinator in
1958. According to Michael Karpin's "The Bomb in the Basement"
(2007) Feinberg and 25 others contributed $40 million to the
Israeli nuclear weapons program against opposition from
presidents Eisenhower and Kennedy.
A newly released 1952 file reveals the FBI's early awareness of
Feinberg's many secret meetings with Israeli foreign agents:
"Feinberg has been in contact with Colonel Ephraim Ben-Arazi,
former Israeli Military Attaché to the United States; Theodore
H. Kollek, Israeli Minister in Washington; Reuben Shiloah
[founder of Mossad], personal advisor to the Israeli Minister of
Foreign Affairs; Nahum Bernstein, Secretary of Israel Speaks.
All of these individuals are known to have been active in the
Israeli Intelligence Service."
The Feinberg section of the archive cross-references a separate
Senate investigation archive revealing Feinberg's year 1960
financial contributions to the American Israel Public Affairs
Committee. Simultaneously, the Near East Report (now affiliated
with the American Israel Public Affairs Committee, AIPAC)
released stories into the U.S. media such as "No Bombs Possible"
that denied Israel had a secret nuclear weapons program even as
AIPAC's founder closely tracked U.S. news coverage of the issue.
Scott Horton and Grant F. Smith discuss
AIPAC's appetite for acquiring and circulating classified US national
defense information based on newly released documents from the Rosen v.
AIPAC defamation lawsuit. They also discuss why there are so few
warranted prosecutions of high ranking Americans committing crimes to
advance Israeli interests in the United States. Radio
The NUMEC diversion and
a declassified FBI document details
Israeli infiltration of Pennsylvania’s NUMEC nuclear plant in the 1960s; why NUMEC’s "losses"
were in fact diversions of highly enriched uranium to Israel’s nuclear
weapons program; the renewed (and increasingly effective) effort to free
Jonathan Pollard, even though the scope and damage of his spy ring
in mystery; how US aid to Israel violates the Symington
02/11/2011 Special Edition of Radio France Internationale
Mubarak is not leaving the Egyptian presidency, but rather is simply
delegating responsibilities to Vice President Omar Suliman, a gesture
according to him that will satisfy protestors. The transition
process will be extended through September, added Mubarak. The
reaction in Tahrir Square was negative as protestors threw their shoes
in an indication of strong rejection. In these 17 days of protest
the main call has been for the Egyptian president to abandon his
position, an embarrassing situation for Washington. President
Obama has said that history was on the march, suggesting a break
this evening in a discussion before Mubarak's speech, and giving faith
to many who believed Mubarak's resignation was immanent. Obama will meet
today with his national security council over the delicate position of
Washington in this matter. We turn to the analysis of Grant F.
Smith, director of the Institute for Research: Middle Eastern Policy in
Grant F. Smith: I think the Obama administration was waiting for
Mubarak's departure, and I imagine that behind the closed doors of the
National Security Council there is a lot of preoccupation with Mubarak's
inability to listen to the Arab street.
Radio France: There is another fundamental actor in this which is
Israel. The Minister of Defense Israel Ehud Barak suggested this
evening from New York that it is the responsibility of the Egyptian
people to find a path to solution without demanding the resignation of
Grant F. Smith: What Mubarak said in his speech tonight is certain:
there are a lot of international and domestic movements involved in
this. But what is important right now is what domestic Egyptian
groups say. They're neither going to define their future in terms
of the supposed Israeli Palestinian "peace process" which has been
broken for decades, nor will they likely continue as the prison guards
of the Palestinians incarcerated in Gaza. They're looking for a
role a bit more true to Egypt's roots.. Audio (MP3,
investigated for years as a national security risk, was meeting with
Israel’s top covert operatives, none of whom had any expertise in
“thermo electric devices.” Ephraim Biegun was head of the Israeli
technical department of its Secret Services between 1960 to 1970.
Avraham Hermoni was technical director of Israel’s nuclear bomb project
at RAFAEL and had a role in the highly decentralized Dimona project.
Bendor was a long-time Shin Bet operative and Eitan’s “right-hand man”
on overseas operations. A 2001 Energy Department audit found that
NUMEC’s losses were highest between 1966 and 1968, and only returned to
industry standards after Shapiro left NUMEC when Babcock and Wilcox
Company bought the plant in 1971.
This latest revelation of the identities and motives of Israel’s
clandestine network in the U.S. has been all but drowned out by growing
calls for Pollard’s release...More
new legal filing asks insurers to deny American Israel Public Affairs
Committee liability claims. In 2009 the Obama administration dropped
Espionage Act prosecutions against two AIPAC employees indicted for
soliciting classified national defense information from the Pentagon.
Earlier that year Steven J. Rosen, who was never formally acquitted,
filed a $20 million suit against his former employer alleging it had
defamed him in the news media by stating his conduct did not comport
with AIPAC standards, placing him in a legal "zone of danger." AIPAC
fired Rosen and abandoned their joint defense agreement, though it paid
nearly $5 million for his criminal defense according to recent court
As defamation suit plaintiff, Rosen has attempted to prove that
soliciting and circulating classified US government information is
routine at the Israel lobby group. Rosen filed evidence that AIPAC
obtained classified arms delivery data from the office of the President
on a yearly basis, secret US-Saudi Arabia policy accords, classified FBI
investigations into financial transactions between foreign governments
and US politicians for use as leverage, and a still-classified
compilation of US industry trade secrets and confidential business
information solicited from US corporations by the International Trade
AIPAC brought its insurance broker Norman Spencer McKernan, Inc. into a
January 13 pre-trial arbitration session. On
January 28, 2011, IRmep director Grant F. Smith filed a legal brief in
the District of Columbia Superior Court objecting to any future claims
paid by AIPAC's insurers. "Most insurance contracts specify that 'any
loss to which a contributing cause was the Insured's being engaged in an
illegal occupation or illegal activity' are excluded from damage
claims." The amicus brief is available from the Israel Lobby Archive at:
http://www.IRmep.org/ila/rosen/01282011.pdf. Other filings may be
According to Smith, "Nonprofit and for profit organizations engaged in
legitimate activities could be hit with higher liability insurance rates
if AIPAC's insurance claims are processed. This would heap injury upon
insult since many Americans and accountability groups are still
wondering why questions about AIPAC's demonstrated classified
information trafficking are being addressed in civil, rather than
[Iran's chief nuclear negotiator Saeed Jalili]
called on all countries and media to pay attention to the issue and ask
in their negotiations and reports that why thousands of pages, news and
reports are written and given out about a country's peaceful nuclear
program, but nothing is said or written about the loss of 200 pounds of
weapon-grade uranium in the US.
He made the remarks referring to the Apollo Affair in 1965 which was an
incident in which a US company, Nuclear Materials and Equipment
Corporation (NUMEC), in Apollo, Pennsylvania was investigated for losing
200-600 pounds of highly enriched uranium.
NUMEC's startup capital was provided by David Lowenthal, who was
closely associated with Israeli intelligence and David Ben-Gurion.
NUMEC was a small fuel rod fabrication plant, producing fuel for U.S.
Navy vessels that was also involved in "secret weapons projects". NUMEC
pioneered mass production of nuclear fuel paving the way to power
commercial reactors for power plants. Between 1957 and 1967
received over 22 tons of government-owned Uranium-235.
In 1965, the FBI investigated Dr. Zalman Shapiro, the company's
president, over the loss 200 pounds of highly enriched uranium. Although
investigated by the Atomic Energy Commission, the Central Intelligence
Agency, the Federal Bureau of Investigation, and other government
agencies and inquiring reporters, no charges were ever filed.
On January 10, 2011, the
American Israel Public Affairs Committee was challenged in the District
of Columbia Superior Court over its past receipt, duplication and
redistribution of U.S. government classified documents.
AIPAC, defending itself from plaintiff and former employee Steven J.
Rosen's $20 million defamation suit, attempted to minimize its role as
the target of an FBI investigation conducted between 1984 and 1987. At
issue was whether AIPAC's past receipt, use, and duplication of a U.S.
government classified report secretly delivered by the Israeli embassy
constituted wrongdoing. The classified document, Probable Economic
Effect of Providing Duty Free Treatment for U.S. Imports from Israel,
Investigation No. 332-180 was a compilation of "business confidential"
information the International Trade Commission and US Trade
Representative solicited from U.S. industry and worker groups. The
report was part of the advice and consent deliberative process over
whether the U.S. should enter into a bilateral trade agreement with
On January 3, 2011, AIPAC filed statements in court about the "USTR
document obtained by AIPAC in 1984" claiming "…following an FBI
investigation of the matter, AIPAC was cleared of any wrongdoing and the
document that framed the basis of the investigation contained no
classified national defense information." AIPAC then filed a copy of an
August 13, 1984 FBI Washington Field Office investigation summary, first
obtained by author Grant F. Smith under the Freedom of Information Act
in 2009, to substantiate its claims...
...Proprietary documents AIPAC claims Rosen has in his possession
include AIPAC's benefits and personnel policy handbook, AIPAC's bylaws
(already released by Rosen), a memorandum of an AIPAC luncheon with
National Security Council member Lisa Johnson, an internal memo about
how limits on individual contributors would affect U.S. political
campaigns, another internal memo about the individual political
activities of AIPAC members, and Keith Weissman's employee performance
review. Johnson worked in the Bush 43 NSC Near East and South Asian
Affairs division under Bruce Ridell and Zalmay Khalilzad. Former AIPAC
employee Keith Weissman was indicted for espionage alongside Rosen in
2005. AIPAC claims, "Most offensive is that Mr. Rosen has stolen the
private employment evaluation of another employee and produced it in
this litigation with no regard for that employee's privacy and personal
MoreIsrael Lobby Archive
Institute for Research Middle
Eastern Policy, Inc.
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