This page can be viewed at http://www.historycommons.org/entity.jsp?entity=hussein_bin_talal
a.k.a. King Hussein
The first major act of Middle East terrorism on a global scale plays out in Jordan. Militant Palestinian nationalists hijack four Western commercial airliners and fly the planes and their passengers—now hostages—to a desert airfield near Amman. After negotiations, they release the hostages and blow up the empty airliners for the news cameras. Jordan’s King Hussein responds by mobilizing his military for a showdown with the Palestinian Liberation Organization (PLO), a guerrilla organization based in his country. Hussein worries that Iraq or Syria might intervene on behalf of the PLO, and lets the US know that he would like US support in that event. Instead, Secretary of State Henry Kissinger makes the unlikely suggestion that Israel, not the US, step in to help Jordan if need be. President Nixon uses the incident to challenge the Soviet Union, warning the Soviets not to intervene if the US moves to prevent Syrian tanks from entering Jordan. Nixon often lets the Soviets and other adversaries think that he is capable of the most irrational acts—the “madman theory,” both Nixon and his critics call it—but Kissinger eventually convinces Nixon to support the idea of Israeli intervention. King Hussein secretly cables the British government to request an Israeli air strike, a cable routed to Washington via Israeli Prime Minister Golda Meir. Nixon gives his approval and Israel moves in. 3,000 Palestinians and Jordanians die in the subsequent conflict, dubbed “Black September” in the Arab world. Hussein loses influence and prestige among his fellow Arab leaders, and the PLO, energized by the conflict, moves into Lebanon. PLO leader Yasser Arafat takes undisputed control of the organization. Oil-supplying nations rally behind the Palestinian cause, and international terrorist incidents begin to escalate. (Werth 2006, pp. 90-91)
CIA Director William Casey introduces a plan to break the stalled arms-for-hostages deal with Iran that has been moribund for over a month (see Late May, 1986). Like his boss President Ronald Reagan, Casey has a powerful Cold War mentality and a love of covert operations; like Reagan, Casey believes that building relations with Iran is a way to counter Soviet expansionism. Casey’s plan appears on the agenda of a meeting of the Contingency Pre-Planning Group (CPPG), an inter-agency committee consisting of mid-level representatives of the National Security Council, the Departments of State and Defense, the Joint Chiefs of Staff, and the CIA. The meeting focuses on Iraq’s failures in its long, dismal war against Iran. Casey believes that if Iraq escalates its air attacks on Iran, Iran will need more and more arms from the US, and that will force it to conclude the stalled arms-for-hostages deal on favorable terms. And Casey, ever the espionage aficionado, is playing the two opposing factions—one pro-Iran, one pro-Iraq—within the administration (see January 14, 1984) against one another, according to two CIA aides who work closely with him. Those aides, who speak to reporters in 1992 after leaving the agency, will say he even keeps some White House officials ignorant of the “double nature of his plan.” In furthering his own murky strategies, Casey is also enlisting the support of State and Defense Department officials who fear an imminent Iranian victory. Casey believes that the war will continue as a stalemate for several years, but he deliberately slants his intelligence assessments to paint a graver picture of Iraq’s imminent defeat (Iraq’s fortunes in the war are grim enough to require little embellishment).
CPPG Unable To Find Solutions for Iraq - The CPPG is tasked with shoring up the US’s commercial and financial relationships with Iraq, a chore for which the group cannot find an immediate solution. The CPPG has also considered using Jordan as a conduit for arms to Iraq, similar to the way Israel has served as a conduit for US arms to Iran (see 1981), but the group rejects that idea because, according to a memo from the meeting, “any such transfer has to be notified to the Congress and thus made public.”
Iraq's Antiquated War Strategies - The group finally discusses a matter that plays into Casey’s plan, Iraq’s failure to fight the war in a modern fashion. Iraq uses its powerful air force extremely poorly, at times seemingly afraid to commit planes on missions that might put a single aircraft at risk. Former ambassador Richard Murphy will say of Iraq, “The Iraqis were fighting the way Germans might have in the First World War. They were good at holding a defense line, which is useful in holding back the human waves of Iranians. But when it came to their air force they were inept. On bombing missions, in particular, the Iraqis were so afraid to lose planes that they often didn’t undertake missions, and when they did they did only things that were safe.” Reagan has already issued secret authorizations for Saudi Arabia to transfer US-origin bombs to Iraq, to induce it to use its air force more effectively (see February 1986), to little avail. Now the CPPG says that Vice President George Bush might help out; Bush is making a trip to the Middle East as Reagan’s “peace envoy” (see July 23, 1986). The CPPG decides that Bush might suggest to Jordan’s King Hussein and Egypt’s President Mubarak that the two “sustain their efforts to convey our shared views to Saddam regarding Iraq’s use of its air resources.” The CPPG is not sanguine about the likelihood of Bush’s success, considering the distrust Saddam Hussein maintains for the US. The CPPG recommends that the White House send “a senior US emissary” to confer directly with Hussein; the CPPG is apparently unaware that Casey has already spoken privately with Bush and asked him to meet in secret with Hussein (see July 23, 1986). (Waas and Unger 11/2/1992)
Vice President Bush meets with several national leaders during his trip to the Middle East (see July 28-August 3, 1986). Ostensibly Bush is visiting the region to “advance the peace process,” but in reality his trip has three reasons: to raise his own public profile as an experienced hand in foreign relations for his upcoming presidential bid, to negotiate for the release of US hostages held by Iran, and to secretly pressure Iraq to increase its bombing of Iran to aid in those negotiations.
Meeting with the Israelis - Bush meets briefly with Amiram Nir in Jerusalem. Nir, a close friend of Oliver North’s and a counterterrorism adviser to Israeli Prime Minister Shimon Peres, meets with Bush at North’s behest. Bush will later characterize his meeting with Nir as “generally about counterterrorism,” and will admit obliquely that the two did have “some discussion of arms sales as a means to ‘reach out to moderate elements’ in the Iranian government. Arms sales would ‘establish bona fides’ with the moderate element, who ‘might use their influence with the people who were holding the hostages.’” However, the meeting is later described very differently by others, including Craig Fuller, Bush’s chief of staff, who is present at the meeting; according to Fuller, the two discuss the arms-for-hostages deal in great detail, including specifics about what arms will be delivered, and both are ready to negotiate with the Islamic radicals of the Khomeini regime who control the American hostages. The hostages are to be released in a group in return for 4,000 US-made antitank missiles. Nir himself reports the contents of the meeting to Peres, and his later account of it is virtually identical to Fuller’s. Nir also notes that his biggest question—how to get the Iranians to release the hostages all at once and not one or two at a time—went unanswered by Bush. “The [vice president] made no commitments nor did he give any direction to Nir,” Fuller notes.
Meeting with King Hussein - Bush then flies to Jordan to meet with King Hussein. Their meeting has an element not divulged to the press: Hussein has often been used as an intermediary between Reagan officials and Iraq. The CIA uses Jordan as a conduit to pass intelligence to Iraq, with the Jordanian involvement providing critical “deniability.” Bush tells the king that Iraq needs to be more aggressive in its war with Iran if it wants to win the war, and tells Hussein to tell the Iraqis to use its air force more expansively. Hussein promises to pass the message along.
Meeting with Mubarak - Bush then jets to Egypt to meet with its president, Hosni Mubarak. Reporters note that Bush tells Mubarak that the US cannot increase aid to Egypt. They are unaware that Bush asks Mubarak to pass along the same message that he has asked of King Hussein: to exhort Iraq to step up its air war against Iran. By the time Bush speaks with Mubarak, the NSA, monitoring Jordanian-Iraqi communications, learns that Hussein has already passed along the message. The talking points for Bush’s meeting with Mubarak are authored by Teicher. (Waas and Unger 11/2/1992; Affidavit. United States v. Carlos Cardoen, et al. [Charge that Teledyne Wah Chang Albany illegally provided a proscribed substance, zirconium, to Cardoen Industries and to Iraq] 1/31/1995 ; Windrem 8/18/2002)
Mohammed Said Nabulsi, Jordan’s central bank governor, orders the country’s banks to deposit 30 percent of their foreign exchange holdings with the central bank. The measure is part of an effort to enforce regulations on liquidity ratios and reduce the outflow of foreign exchange from Jordan. Petra, run by Ahmed Chalabi, is the only bank among the 20 that is unable to comply with the order. At the urging of Nabulsi, King Hussein puts Petra under government supervision and orders an audit of the bank’s books. Petra’s board of directors are replaced and an investigation begins. Two weeks later, in August 1989, Chalabi flees the country—reportedly with $70 million. According to Hudson Institute’s Max Singer, Prince Hassan personally drives Chalabi to the Jordanian border, helping him escape. The investigation subsequently uncovers evidence of massive fraud. “The scale of fraud at Petra Bank was enormous,” Nabulsi will later recall. “It was like a tiny Enron.” Arthur Andersen determines that the bank’s assets are overstated by $200 million. The bank is found to have enormous bad debts (about $80 million); “unsupported foreign currency balances at counter-party banks” (about $20 million); and money purportedly owed to the bank which could not be found (about $60 million). Millions of dollars of depositors’ money had been routed to the Chalabi family empire in Switzerland, Lebanon, and London, in the form of loans that had not been repaid. The Chalabi family’s Swiss and Lebanese firms, Mebco and Socofi, are later put into liquidation. As a result of the fraud, the Jordanian government is forced to pay $200 million to depositors whose money had disappeared, and to avert a potential collapse of the country’s entire banking system. (Dreyfuss 11/18/2002; Leigh and Whitaker 4/14/2003; Dizard 5/4/2004; Cockburn 5/20/2004; Mayer 6/7/2004; Murphy 6/15/2004) Chalabi later provides a different account of what happened. According to Zaab Sethna, a spokesman for the Iraqi National Congress, King Hussein of Jordan turned on Chalabi in coordination with Iraq because Chalabi was “using the bank to fund [Iraqi] opposition groups and learning a lot about illegal arms transfers to Saddam.” Petra Bank was also providing the CIA with information on the Jordanian-Iraqi trade. (Dreyfuss 11/18/2002; Mayer 6/7/2004)
After a meeting between Iraqi dictator Saddam Hussein and Jordan’s King Hussein, in which the king exhorted the Iraqi leader to free the 120 or so American hostages in Iraqi custody in order to avoid the possibility of US retaliation (see Late November, 1990), Hussein announces that Iraqi forces are now strong enough to withstand a US military strike, so the hostages may depart. After a chaotic few days of arranging transport for the newly released hostages, the number of Americans in Baghdad dwindle to fewer than ten: the ranking US diplomat in Baghdad, Joseph Wilson, and a few embassy staff members. (Wilson 2004, pp. 165-166)
Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike