Creating the Market

The British Origins of the Counterculture


The acts or gestures that accompany the incantations constitute the rite (of Isis). In these dances, the beating of drums and the rhythm of music and repetitive movements were helped by hallucinatory substances like hashish or mescal; these were consumed as adjuvants to create the trance and the hallucinations that were taken to be the visitation of the god.


The drugs were sacred, and their knowledge was limited to the initiated; their preparation and their gathering were surrounded with . . . secrecy. . , . In some cases, like the harvesting of the mandrake, they remained secret until the Middle Ages.

Possibly because they gave the illusion of satisfied desires, and allowed the innermost feelings to escape, these rites acquired during their execution a frenzied character that is conspicuous in certain spells: "Retreat! Re is piercing thy head, slashing thy face, dividing they head, crushing it in his hands; thy bones are shattered, thy limbs are cut to pieces." The House of Life: Magic and Medical Science in Ancient Egypt, by Paul Ghalioungui (1)

If this description of pagan cult ceremonies dating back to the Egyptian Isis priesthood of the third millennium B.C. reads like a journalistic account of a "hippy be-in" circa 1969 A.D., it should. The counterculture that was foisted on the 1960s adolescent population is not merely analogous to the ancient Cult of Isis. It is a literal resurrection of the Isis cult — down to the popularization of the Isis cross as the counterculture's most frequently used symbol.

As we shall show here, the drug-rock counterculture was the result of Britain's 30-year Opium War against the United States, which included not only chemical and psychological warfare but the hideous military project called the Vietnam War.

The British fostered the creation of the bestial rock and drug cult for the same reason that their colonial policy enforced backwardness throughout the empire and for the same reason that the pharaohs of ancient Egypt and the Ptolemaic priests of the first century A.D. Egypt fostered the practice. As long as a population is organized around superstition, magic, hallucinogenic drugs, and animal-like pursuit of immediate sensory gratification ("if it feels good, do it"), it will remain incapable of acting on behalf of its own interests. It was for this reason that the oligarchies of ancient Egypt organized themselves into priesthoods and created dozens of apparently contending pagan cults, all characterized by the same bestialist outlook.

True religion, as opposed to the worship of magically endowed cult-gods, addresses man's capacity for reason, his "Godliness." Unlike the lower beasts, the human species is uniquely capable of creative thought — the ability to break out of the bounds of sense certainty, develop new scientific knowledge, and socially apply that knowledge through technological innovations that uplift the material and cultural condition of man. Historically such true religion has been associated with the development of urban centers where science, culture, and commerce could flourish. Its sworn enemy has been the oligarchy and its priesthoods and cults which on countless occasions have mobilized to sack the cities, murder the city-builders, and bring on the "dark ages" of plague and ignorance.

The gentlemen at the Royal Institute of International Affairs responsible for charting Britain's global drug trafficking recognized that no mass-scale drug epidemic could be produced in the United States until the American people's fundamental commitment to scientific and technological progress had first been significantly undermined. The drug-rock counterculture was no mere "sociological phenomenon."

In his City of God, the great humanist St. Augustine described the degeneration into cultism that brought on the destruction of Rome, in terms that have direct bearing on the post-1963 degeneration of the United States:

The stage plays, those exhibitions of depravity and unbounded license, were not introduced in Rome by men's vices, but by the command of your gods. Far more justifiably might you have paid divine honors to your Scipio than worship gods such as those, for they were not more virtuous than their high priest.

Are your minds bereft of reason? You are not merely mistaken; this is madness. Here are people in the east bewailing Rome's humiliation, and great states in remote regions of the earth holding public mourning and lamentation — and you Romans are searching for theaters, pouring into them, filling them, behaving more irresponsibly than ever before. It is this spiritual disease, degeneration, decline into immorality and indecency that Scipio feared when he opposed the erection of theaters. He saw how easily ease and plenty would soften and ruin you. He did not wish you to be free from fear.

He did not think that the republic could be happy while walls were standing, yet morals were collapsing. But, you were more attached to the seductions of foul spirits than to the wisdom of men with foresight. That is why you take no blame for the evil you do, but blame Christianity for the evil you suffer. Depraved by prosperity, and unchastened by adversity, you desire, in your security, not the peace of the State, but liberty for license. (2)

The high priesthood

The "case officer" for Britain's Opium War was Aldous Huxley, the grandson of Thomas H. Huxley, a founder of the Rhodes Round Table group and a lifelong collaborator of Arnold Toynbee. Toynbee himself sat on the RIIA council for nearly 50 years, headed the Research Division of British intelligence throughout World War II, and served as wartime briefing officer to Prime Minister Winston Churchill.

Toynbee's "theory" of history, expounded in his 20-volume history of Western civilization, was that its determining feature has always been the rise and decline of grand imperial dynasties. At the very point that these dynasties — the "thousand year Reich" of the Egyptian pharaohs, the Roman Empire, and the British Empire — succeed in imposing their rule over the entire face of the earth, they tend to decline. Toynbee argued that this decline could be abated if the ruling oligarchy (like that of the British Round Table) would devote itself to the recruitment and training of an ever-expanding priesthood devoted to the principles of imperial rule. (3)

Trained at Toynbee's Oxford, Aldous Huxley was one of the initiates in the "Children of the Sun," a dionysian cult comprised of the children of Britain's Round Table elite. (4) Among the other initiates were T.S. Eliot, W. H. Auden, Sir Oswald Moseley, and D. H. Lawrence, Huxley's homosexual lover. It was Huxley, furthermore, who would launch the legal battle in the 1950s to have Lawrence's pornographic novel Lady Chatterley's Lover allowed into the United States on the ground that it was a misunderstood "work of art." (5)

Aldous Huxley, along with his brother Julian, was tutored at Oxford by H. G. Wells, the head of British foreign intelligence during World War I. Wells's writings (Time Machine, etc.), along with those of his protιgιs Aldous Huxley (Brave New World) and George Orwell (1984, Animal Farm), were written as "mass appeal" organizing documents on behalf of Britain's "en-lightened" world order. Only in the United States are these "science fiction classics" taught in grade school as attacks against fascism. (A contemporary British intelligence operative turned-author, Anthony Burgess, wrote Clockwork Orange in the Wells-Orwell-Huxley tradition as a pornographic celebration of the drug-rock counterculture.)

Under Wells's tutelage Huxley was first introduced to Aleister Crowley (see Part II, Section 9). Crowley was a product of the cultist circle that developed in Britain from the 1860s under the guiding influence of Edward Bulwer-Lytton — who, it will be recalled, was the colonial minister under Lord Palmerston during the Second Opium War. In 1886, Crowley, William Butler Yeats, and several other Bulwer-Lytton protιgιs formed the IsisUrania Temple of Hermetic Students of the Golden Dawn. This Isis Cult was organized around the 1877 manuscript Isis Unveiled by Madame Helena Blavatsky, in which the Russian occultist called for the British aristocracy to organize itself into an Isis Priesthood. (6)

Crowley in turn initiated Aldous Huxley into the Isis-Golden Dawn Temple and introduced him to psychedelic drugs in 1929. (7)

In 1937, Huxley moved to the United States, where he remained throughout the period of World War II. Through a Los Angeles contact, Jacob Zeitlin, Huxley and pederast Christopher Isherwood were employed as script writers for MGM, Warner Brothers, and Walt Disney studios. As we have seen, Hollywood was already dominated by organized crime elements bankrolled and controlled through London. Joseph Kennedy was the front man for a British consortium that created RKO studios, and "Bugs" Siegel, the West Coast boss of the Lansky syndicate, was heavily involved in Warner Brothers and MGM.


Huxley was instrumental in founding a nest of Isis cults in southern California and in a San Francisco suburb called Ojai — which consisted exclusively of several hundred deranged worshippers of Isis and other cult gods. (8) Isherwood, during the California period, translated and propagated a number of ancient Zen Buddhist documents, inspiring Zen-mystical cults along the way. (9)


In effect, Huxley and Isherwood (joined soon afterwards by Thomas Mann and his daughter Elisabeth Mann Borghese) laid the foundation during the late 1930s and the 1940s for the later LSD culture by recruiting a core of "initiates" into the Isis cults that Huxley's mentors Bulwer-Lytton, Blavatsky, and Crowley, had constituted while stationed in India.

LSD: "visitation from the gods"

The next phase in the war involved the introduction of LSD for which Aldous Huxley was the designated Crown agent.

Lycergic acid diethylamide, or LSD, was developed in 1943 by Albert Hoffman, a chemist at Sandoz A.G. — a Swiss pharmaceutical house owned by S. G. Warburg. While precise documentation is unavailable as to the auspices under which the LSD research was commissioned, it can be safely assumed that British intelligence and its subsidiary U.S. Office of Strategic Services were directly involved. Allen Dulles, the director of the

U.S. Central Intelligence Agency in 1952 when that agency began its covert LSD experiment, MK-ULTRA, was the OSS station chief in Berne, Switzerland throughout the early Sandoz research. One of his OSS assistants was James Warburg, of the same Warburg family, who was instrumental in the 1963 founding of the Institute for Policy Studies, and worked with both Huxley and Robert Hutchins. (10)

In 1952, Aldous Huxley returned to the United States from Britain, accompanied by Dr. Humphrey Osmond, the Huxleys' private physician. Osmond had been part of a discussion group Huxley had organized at the National Hospital, Queens Square, London. Along with another seminar participant, J. R. Smythies, Osmond wrote Schizophrenia: A New Approach, in which he asserted that mescaline — a derivative of peyote mushrooms used in ancient Egyptian and Indian pagan rites — produced a psychotic state identical in all clinical respects to schizophrenia. On this basis, Osmond and Smythies advocated experimentation with hallucinogenic drugs as a means of developing a "cure" for mental disorders.

Osmond was brought in by Allen Dulles to play a prominent role in MK-ULTRA. At the same time, Osmond, Huxley, and the University of Chicago's Robert Hutchins held a series of secret planning sessions in 1952-53 for a second, private LSD-mescaline project under the Ford Foundation funding. (11) Hutchins, it will be recalled, was the program director of the Ford Foundation during this period. His LSD proposal incited such rage in Henry Ford II that Hutchins was fired from the foundation the following year.

It was also in 1953 that Osmond gave Huxley a supply of mescaline for his personal consumption. The next year, Huxley wrote The Doors of Perception, the first public manifesto of the psychedelic drug cult, which claimed that hallucinogenic drugs "expand consciousness."

Although, through the sane intervention of Henry Ford, the Ford Foundation rejected the Hutchins-Huxley proposal for private foundation sponsorship of LSD, it appears that the project was not dropped. Beginning in 1962, the RAND Corporation of Santa Monica California began a four-year experiment in LSD, peyote, and marijuana. The RAND Corporation was established simultaneously with the reorganization of the Ford Foundation during 1949-50. RAND was an outgrowth of the wartime Strategic Bombing Survey, a "cost analysis" study of the psychological effects of random bombings of German population centers. It is well known that RAND has been responsible for conduiting such patently insane policies as "limited thermonuclear war" and the "insanity doctrine" into the U.S. Pentagon — most notably through RAND's James Schlesinger.

According to the 1962 RAND Abstract, W. H. McGlothlin conducted a preparatory study on "The Long lasting Effects of LSD on Certain Attitudes in Normals: An Experimental Proposal." The following year, McGlothlin conducted a year-long experiment on 30 human guinea pigs, called "Short-Term Effects of LSD on Anxiety, Attitudes and Performance." The study incredibly concluded that LSD improved emotional attitudes and resolved anxiety problems. (12)



Huxley expanded his own LSD-mescaline project in California by recruiting several individuals who had been initially drawn into the cult circles he helped establish during his 1937-45 stay. The two most prominent individuals were Alan Watts and Dr. Gregory Bateson (the former husband of Dame Margaret Mead). Mead).

Watts became a self-styled "guru" of a nationwide Zen Buddhist cult built around a series of his well-publicized books. Bateson, an anthropologist with the OSS, became the director of a hallucinogenic drug experimental clinic at the Palo Alto Veterans Administration Hospital. Under Bateson's auspices, the initiating "cadre" of the LSD cult — the hippies — were programmed. (13)

Watts at the same time founded the Pacifica Foundation, which sponsored two radio stations — WKBW in San Francisco and WBAI-FM in New York City. The Pacifica stations were among the first to push the "Liverpool Sound" — the British-imported hard rock twanging of the Rolling Stones, the Beatles, and the Animals. They would later pioneer "acid rock" and eventually the avowedly fascist-psychotic "punk rock."

During the fall of 1960, Huxley was appointed Visiting Professor at the Massachusetts Institute of Technology in Boston. Around his stay in that city, Huxley created a circle at Harvard parallel to his West Coast LSD team. The Harvard group included Huxley, Osmond, and Watts (brought in from California), Timothy Leary, and Richard Alpert.

The ostensible topic of the Harvard seminar was "Religion and its Significance in the Modern Age." The seminar was actually a planning session for the "acid rock" counterculture. Huxley established contact during this Harvard period with the president of Sandoz, which at the time was working on a CIA contract to produce large quantities of LSD and psilocybin (another synthetic hallucinogenic drug) for MK-ULTRA, the CIA's official chemical warfare experiment. According to recently released CIA documents, Allen Dulles, purchased over 100 million doses of LSD — almost all of which flooded the streets of the U.S. during the late 1960s. During the same period Leary began privately purchasing large quantities of LSD from Sandoz as well. (14)

From the discussions of the Harvard seminar, Leary put together the book The Psychedelic Experience, based on the ancient cultist Tibetan Book of the Dead. It popularized Osmond's previously coined mind expanding."

Back in California, Gregory Bateson had maintained the Huxley operation out of the Palo Alto VA hospital. Through LSD experimentation on patients already hospitalized for psychological problems, Bateson established a core of "initiates" into the "psychedelic" Isis Cult. Foremost among his Palo Alto recruits was Ken Kesey. In 1959, Bateson administered the first dose of LSD to Kesey. By 1962, Kesey had completed a novel, One Flew Over the Cuckoo's Nest, which popularized the notion that society is a prison and the only truly "free" people are the insane. (15)


Kesey subsequently organized a circle of LSD initiates called "The Merry Pranksters." They toured the country disseminating LSD (often without forewarning the receiving parties), building up local distribution connections, and establishing the pretext for a high volume of publicity on behalf of the still miniscule "counterculture." By 1967, the Kesey cult had disseminated such quantities of LSD that a sizable drug population had emerged, centered in the Haight-Ashbury district of San Francisco. Here Huxley collaborator Bateson set up a "free clinic."


Among the founders of the "free clinic" were: Dr. David Smith — now a "medical advisor" for the National Organization for the Reform of Marijuana Laws (NORML), an entity we shall discuss in Part V; Dr. Ernest Dernberg — an active-duty military officer, probably on assignment through MK-ULTRA; Roger Smith — a street gang organizer trained by Saul Alinsky. During the Free Clinic period, Roger Smith was the parole officer (and probable controller) of the cultist mass murderer Charles Manson; Dr. Peter Bourne — formerly President Carter's special assistant on drug abuse. Bourne did his psychiatric residency at the clinic. He had previously conducted a profiling study of GI heroin addicts in Vietnam.

The Free Clinic paralleled a project at the Tavistock Institute, the psychological warfare agency for British Secret Intelligence Service. Tavistock, founded as a clinic in London in the 1920s, had become the Psychiatric Division of the British Army during World War II under its director, Dr. John Rawlings Rees. (16)

During the 1960s, the Tavistock Clinic fostered the notion that no criteria for sanity exist and that psychedelic "mindexpanding" drugs are valuable tools of psychoanalysis. In 1967, Tavistock sponsored a Conference on the Dialectics of Liberation, chaired by Tavistock psychoanalyst Dr. R. D. Laing, himself a popularized author and advocate of drug use. That conference drew a number of people who would soon play a prominent role in fostering terrorism; Angela Davis and Stokely Carmichael were two prominent American delegates. (17)

Thus, by 1963, Huxley had recruited his core of "initiates." As the general reader is well aware, all of them — Leary, Osmond, Watts, Kesey, Alpert — were highly publicized promoters of the early LSD counterculture. By 1967, with the cult of "Flower People" in Haight-Ashbury and the emergence of the antiwar movement, the United States was ready for the inundation of LSD, hashish, and marijuana that hit American college campuses in the late 1960s.

"The beating of drums ..."

In 1963, the Beatles arrived in the United States, and with their decisive airing on the Ed Sullivan Show, the "British sound" took off in the USA. For their achievement, the four rocksters were awarded the Order of the British Empire by Her Majesty the Queen. The Beatles and the Animals, Rolling Stones, and homicidal punk rock maniacs who followed were, of course, no more a spontaneous outpouring of alienated youth than was the acid culture they accompanied.

The social theory of rock was elaborated by British agent and musicologist Theodor Adorno, who came to the United States in 1939 to head the Princeton University Radio Research Project (18)


Adorno writes:

In an imaginary but psychologically emotion-laden domain, the listener who remembers a hit song will turn into the song's ideal subject, into the person for whom the song ideally speaks. At the same time, as one of many who identify with that fictitious subject, that musical I, he will feel his isolation ease as he himself feels integrated into the community of "fans." In whistling such a song he bows to a ritual of socialization, although beyond this unarticulated subjective stirring of the moment his isolation continues unchanged ....

The comparison with addiction is inescapable. Addicted conduct generally has a social component: it is one possible reaction to the atomization which, as sociologists have noticed, parallels the compression of the social network. Addiction to music on the part of a number of entertainment listeners would be a similar phenomenon (emphasis added). (19)

The Hit Parade is organized precisely on the same principles used by Egypt's Isis priesthood and for the same purpose: the recruitment of youth to the dionysiac counterculture.

In a report prepared for the University of Michigan's Institute of Social Research, Paul Hirsch described the product of Adorno's Radio Research Project. (20) According to Hirsch, the establishment of postwar radio's Hit Parade "transformed the mass medium into an agency of sub-cultural programming." Radio networks were converted into round-the-clock recycling machines that repeated the top 40 "hits." Hirsch documents how all popular culture — movies, music, books, and fashion — is now run on the same program of pre-selection.


Today's mass culture operates like the opium trade: the supply determines the demand.

The Vietnam war and the antiwar trap

But without the Vietnam War and the British Secret Intelligence Services' "antiwar" movement, the Isis Cult would have been contained to a fringe phenomenon — no bigger than the beatnik cult of the 1950s that was an outgrowth of the early Huxley ventures in California. The Vietnam war created the climate of moral despair that opened the educated elite of America's youth — the first 20th-century generation raised in a climate free from depression and war — to drugs.

The reader has already been shown that the Kennedy Ad-ministration installed in the White House by the 1960 elections was sponsored by the British Round Table (see Part III). Under Kennedy, American involvement in Vietnam — which had been vetoed by the Eisenhower Administration — was initiated on a limited scale. Under Lyndon Johnson, American military presence in Vietnam began in earnest. Johnson's principal Vietnam advisor was not even American. He was a British officer, Sir Robert Thompson, whose entire career had been spent conducting counterinsurgency warfare in Southeast Asia.


Playing on the President's "yahoo" anticommunist profile, Thompson convinced President Johnson that communist insurgency had to be stopped at all costs and that a strong U.S. military presence in South Vietnam was necessary for that containment. Johnson, a military and foreign policy incompetent whose other chief Vietnam advisor, National Security Council Director Walt Rostow, held the Cross of the Order of the British Empire, was dragged by the nose into Vietnam by the British.

The British, to put it simply, had two reasons for manipulating the United States into Vietnam. The first was to foster a "limited war" confrontation in Southeast Asia between the United States and the Soviet Union (through its North Vietnamese "surrogate") that would both refuel the Cold War and effectively undercut the influence of both powers in the region. The second and equally significant reason was to demoralize the American people to such a degree that the sense of national pride and confidence in the future progress of the republic would be forever shattered.

Just as Aldous Huxley began the counterculture subversion of the United States 30 years before its consequences became evident to the public, Lord Bertrand Russell began laying the foundations for the antiwar movement of the 1960s before the 1930s expired. Lord Russell and Aldous Huxley co-founded the Peace Pledge Union in 1937 — just before both went to the United States for the duration of World War II. (21)

Russell's antiwar zeal, it should be noted, was a patent fraud. During World War II, Lord Russell opposed British and American warfare against the Nazis because he was a peripheral member of the pro-Nazi Cliveden Set. In 1947, when the United States was in possession of the atomic bomb and Russia was not, Russell loudly advocated that the United States preemptively commence World War III — against the Soviet Union. His 1950s "Ban the Bomb" about-face was fundamentally an anti-technology movement against the peace-through-development potentials represented by President Eisenhower's "Atoms for Peace" initiative to the Soviets; Eisenhower's 1954 proposal to the United Nations was predicated on the development of thermonuclear fusion power and concomitant city-building projects throughout the underdeveloped sector.

From the mid-1950s on, Russell's principal assignment was to build an international antiwar and anti-American movement. Coincident with the escalation of U.S. involvement in Vietnam under British manipulation, Russell upgraded the old Peace Pledge Union (which had been used in West Germany throughout the postwar period to promote an anti-capitalist "new left" wing of the Social Democratic Party, recruiting several future members of the Baader-Meinhof terrorist gang in the process) into the Bertrand Russell Peace Foundation.

In the United States, New York's Our Crowd banks provided several hundred thousand dollars to establish the Institute for Policy Studies (IPS), as effectively the U.S. branch of the Russell Peace Foundation. Among the founding trustees of the IPS was James Warburg, directly representing the family's interests.

IPS drew its most active operatives from a variety of British dominated institutions. IPS founding director Marcus Raskin was a member of the Kennedy Administration's National Security Council and also a fellow of the National Training Labs, a U.S. subsidiary of the Tavistock Institute founded by Dr. Kurt Lewin.

IPS in turn financed and ran the Students for a Democratic Society (SDS) — the student antiwar movement — up through and beyond its splintering into a number of terrorist and Maoist gangs in the late 1960s. (22) If one were to take the time to trace the pedigrees of all of the leaders of the antiwar movement in the United States, an almost unbroken pattern of either IPS or direct Russell Foundation control would emerge. This is not to say that the majority of antiwar protesters were paid, certified British agents. On the contrary, the overwhelming majority of antiwar protesters went into SDS on the basis of outrage at the developments in Vietnam and subsequently got trapped.


Once caught in the environment defined by Russell and the Tavistock Institute's wartime psychological warfare experts, their sense of values and their creative potential were snatched up in a cloud of hashish smoke.

The LSD connection

Who provided the drugs that swamped the antiwar movement and the college campuses of the United States in the late 1960s? The organized crime infrastructure — which had set up the Peking Connection for the opium trade in 1928 — provided the same services in the 1960s and 1970s it had provided during Prohibition. This was also the same network Huxley had established contact with in Hollywood during the 1930s.

The LSD Connection begins with one William "Billy" Mellon Hitchcock. Hitchcock was a graduate of the University of Vienna and a scion of the millionaire Mellon banking family of Pittsburgh. (Andrew Mellon of the same family had been the Treasury Secretary throughout Prohibition.) In 1963, when Timothy Leary was thrown out of Harvard, Hitchcock rented a 55-room mansion in Millbrook, New York where the entire Leary Huxley circle of initiates was housed until its later move back to California. (23)

Hitchcock was also a broker for the Lansky syndicate and for the Fiduciary Trust Co., Nassau, Grand Bahamas — a wholly owned subsidiary of Investors Overseas Services. He was formally employed by Delafield and Delafield Investments where he worked on buying and selling vast quantities of stock in the Mary Carter Paint Co. — soon to become Resorts International.

In 1967, Dr. Richard Alpert put Hitchcock in contact with Augustus Owsley Stanley III. As Owsley's agent, Hitchcock retained the law firm of Rabinowitz, Boudin and Standard (24) to conduct a feasibility study of several Caribbean countries to determine the best location for the production and distribution of LSD and hashish.

During this period, Hitchcock joined Leary and his circle in California. Leary had established an LSD cult called the Brother hood of Eternal Love and several front companies, including Mystics Art World, Inc. of Laguna Beach, California. These California-based entities ran lucrative trafficking in Mexican marijuana and LSD brought in from Switzerland and Britain. The British connection had been established directly by Hitchcock, who contracted the Charles Bruce chemical firm to import large quantities of the chemical components of LSD. With financing from both Hitchcock and George Grant Hoag, the heir to the J.C. Penney dry goods fortune, the Brotherhood of Eternal Love set up LSD and hashish production-marketing operations in Costa Rica in 1968. (25)

Toward the end of 1968, Hitchcock expanded the LSD-hashish production operations in the Caribbean with funds provided by the Fiduciary Trust Co. (IOS). In conjunction with J. Vontobel and Co. of Zurich, Hitchcock founded a corporation called 4-Star Anstalt in Liechtenstein. This company, employing "investment funds" (i.e., drug receipts) from Fiduciary Trust, bought up large tracts of land in the Grand Bahamas as well as large quantities of ergotamine tartrate, the basic chemical used in the production of LSD. (26)

Hitchcock's personal hand in the LSD connection abruptly ended several years later. Hitchcock had been working closely with Johann F. Parravacini of the Parravacini Bank Ltd. in Berne, Switzerland. From 1968, they had together funded even further expansion of the Caribbean-California LSD-hashish ventures. In the early 1970s, as the result of a Securities and Exchange Commission investigation, both Hitchcock and Parravacini were indicted and convicted of a $40 million stock fraud. Parravacini had registered a $40 million sale to Hitchcock for which Hitchcock had not put down a penny of cash or collateral. This was one of the rare instances in which federal investigators succeeded in getting inside the $200 billion drug fund as it was making its way around the "offshore" banking system.

Another channel for laundering dirty drug money — a channel yet to be compromised by federal investigative agencies — is important to note here. This is the use of tax-exempt foundations to finance terrorism and environmentalism. One immediately relevant case makes the point.

In 1957, the University of Chicago's Robert M. Hutchins established the Center for the Study of Democratic Institutions (CSDI) in Santa Barbara, California. Knight Commander Hutchins drew in Aldous Huxley, Elisabeth Mann Borghese, and some Rhodes Scholars who had originally been brought into the University of Chicago during the 1930s and 1940s.

The CSDI was originally funded (1957-61) through a several million-dollar fund that Hutchins managed to set up before his untimely departure from the Ford Foundation. From 1961 on, the Center was principally financed by organized crime. The two funding conduits were the Fund of Funds, a tax-exempt front for Bernie Cornfeld's IOS, and the Parvin Foundation, a parallel front for the Parvin-Dohrman Co. of Nevada. IOS and Parvin Dohrman held controlling interests in the Desert Inn, the Aladdin, and the Dunes — all Las Vegas casinos associated with the Lansky syndicate. IOS, as already documented, was a conduiting vehicle for LSD, hashish, and marijuana distribution throughout the 1960s. (27)


In 1967 alone, IOS channeled between $3-4 million to the center. Wherever there is dope, there is Dope, Inc.



  1. Paul Ghalioungui, The House of Life: Magic and Medical Science in Ancient Egypt (New York: Schram Enterprises Ltd., 1974).

  2. Saint Augustine, The City of God (New York: Oxford University Press, 1963).

  3. Arnold Toynbee, A Study of History (New York: Oxford University Press, 1935).

  4. Martin Green, Children of the Sun: A Narrative of Decadence in England After 1918 (New York: Basic Books, Inc., 1976).

  5. See Ronald William Clark, The Huxleys (New York: McGraw-Hill, 1968).

  6. Helena P. Blavatsky, Isis Unveiled, A Master Key to the Mysteries of Ancient and Modern Science and Theology (Los Angeles: Theosophy Co., 1931).

  7. Francis King, Sexuality, Magic and Perversion (New York: Citadel, 1974), p. 118.

  8. Sybille Bedford, Aldous Huxley: A Biography (New York: Alfred A. Knopf and Harper & Row, 1974).

  9. Ibid.

  10. Institute for Policy Studies, "The First Ten Years, 1963-1973," Washington, D.C., 1974.

  11. Humphrey Osmond, Understanding Understanding (New York: Harper & Row, 1974).

  12. RAND Catalogue of Documents.

  13. Gregory Bateson, Steps to the Ecology of the Mind (New York: Chandler, 1972).

  14. Ralph Metzner, The Ecstatic Adventure (New York: Macmillan, 1968).

  15. See Ronald William Clark, The Huxleys (New York: McGraw-Hill, 1968).

  16. Michael Minnicino, "Low Intensity Operations: The Reesian Theory of War," The Campaigner (April, 1974).

  17. R.D. Laing et al., The Dialectics of Liberation (London: Tavistock Press, 1967).

  18. Theodor Adorno was a leading professor at the Frankfurt School of Social Research in Germany, founded by the British Fabian Society. A collaborator of twelve-tone formalist and British intelligence operative, Arnold Schonberg, Adorno was brough into the United States in 1939 to head up the Princeton Radio Research Project. The explicit aim of this project, as stated in Adorno's Introduction to the Sociology of Music, was to program a mass "musical" culture that would steadily degrade its consumers. Punk rock is, in the most direct sense, the ultimate result of Adorno's work.

  19. Theodor Adorno, Introduction to the Sociology of Music (New York: Seabury Press, 1976).

  20. Paul Hirsch, "The Structure of the Popular Music Industry: The Filtering Process by Which Records are Pre-selected for Public Consumption," Institute for Social Research's Survey Research Center Monograph, 1969.

  21. Ronald W. Clark, The Life of Bertrand Russell (New York: Alfred A. Knopf, 1976), p. 457.

  22. Illinois Crime Commission Report, 1969. The Institute for Policy Studies (IPS) was established in 1963 by Marcus Raskin, a former National Security Advisor under NSC Director McGeorge Bundy, and Richard Barnet, a former State Department Advisor on Arms Control and Disarmament. Among the Board of Trustees of IPS were Thurmond Arnold, James Warburg, Philip Stern, and Hans Morgenthau, with seed money from the Ford Foundation (later to be headed by McGeorge Bundy). IPS has functioned as the "New Left" think tank and control center for local community control, community mental health centers and direct terrorist organizations, In its report "The First Ten Years," the Institute lists among its lecturers and fellows members of the Weathermen group, known associates of the Japanese Red Army, the Puerto Rican terrorist Armed Forces of National Liberation (FALN), and the Black Liberation Army. See also Carter and the Party of International Terrorism, Special Report by the U.S. Labor Party, August, 1976.

  23. Mary Jo Warth, "The Story of Acid Profiteers," Village Voice, August 22,1974.

  24. Ibid.

  25. Ibid.

  26. Ibid.

  27. Hutchinson, Vesco.

Back to Contents









The Drug Lobby

The Criminals Come Out in the Open


In California, laws are now before the state legislature that would decriminalize all drug use on the grounds that this would free law enforcement and judicial agencies to deal with "more serious crime." The sponsor of that bill is State Representative Willie Brown, a paid lobbyist for Resorts International.

That's the tip-off to the real nature of the Drug Lobby. Britain's secret army of organized crime is now out in the open demanding the expansion of its dope market.

Since 1973, when Watergate finished off Nixon's attempt to shut down the drug trade, the Drug Lobby has succeeded in decriminalizing marijuana in nine states. In every case, the result has been an immediate outbreak of drug abuse of epidemic proportions. According to Dr. Peter Bensinger, Director of the Drug Enforcement Administration, the decriminalization of marijuana in the state of Maine additionally opened the coastal area as a major smuggling center for marijuana, cocaine, and heroin.

By the open admission of the Drug Lobbyists, legalized proliferation of marijuana is just the foot-in-the-door for eventual legal cocaine and heroin proliferation. Dr. Peter Bourne, who until 1978 was President Carter's special advisor on drug abuse, making him the highest ranking federal drug enforcement officer, has appeared on nationwide television to advocate national legalization of cocaine.

A systematic campaign to legalize heroin use has been underway since 1977. A bill was placed before the state legislature of Ohio and narrowly defeated in committee in 1977 removing heroin from the list of Category I drugs (those drugs outlawed for even medical use). New Mexico and Florida — both states identified by the DEA as major distribution points for heroin — have bills presently pending that would, like the Ohio bill, legalize the use of heroin under medical supervision in cases of terminal illness and for "experimental purposes." When a similar bill was briefly enacted in New York (in 1919, coincident with Prohibition) , the widely documented consequences were an immediate jump in heroin addiction, far in excess of the number of "officially registered" patients.

At present, two Zionist Lobby sponsored bills are before the U.S. Congress that would nationally legalize marijuana: the Javits-Koch bill and the Kennedy-authored S.1437 which thoroughly overhauls the Federal Criminal Codes on a British "common law" basis.

Kennedy's drug-death Cult

The U.S. Drug lobby is run out front by the Most Venerable Military and Hospitaller Order of St. John of Jerusalem.

In the 11th century, the Knights-Hospitallers had organized hospices as a "death cult" where the sick were administered hallucinogenic drugs instead of medical treatment. The hospices became known as the dissemination point for drugs and lethal poisons, often targeted at the Knights' humanist adversaries.

In 1967, the Order of St. John resurrected the 11th century hospice movement at St. Christopher's Hospice in London. Here, "patients" are administered a "pain-killer" called the Brompton Mixture. It consists of heroin, cocaine, alcohol, tranquilizers, and chloroform water. It is administered every three hours — until the patient dies. (1)

In 1977, the Order of St. John launched a hospice movement in the United States. It advocates the decriminalization of heroin and cocaine — on the "humanitarian" grounds that everyone has the human right to die as he or she sees fit.

To propagate the hospice movement here, the Order founded the National Committee on the Treatment of Intractable Pain (NCTIP). Its honorary chairman is Lady Mary Ward, a British specialist in the hospice movement who founded Hospice, Inc. in Connecticut as the first operating "death clinic" in the U.S. The director of the NCTIP is another British national, Arthur Trebach. A professor at the Center for the Administration of Justice at the American University in Washington, D.C., Trebach is also the Director of the Institute on Drugs, Crime and Justice in Britain. For the past five years, Trebach has sponsored hundreds of U.S. medical students, professional physicians, and others for special indoctrination sessions at the Imperial College of Science and Technology, University of London. The theme of the session is the "success" of Britain's policy of legalizing heroin in curbing the illegal drug problem. (2)

In the United States, the Hospice, Inc. is financed by the Kaiser Foundation, which includes on its board Kingman Brewster, current U.S. Ambassador to the Court of St. James and also a member of the Order of St. John. The Kaiser Foundation's participation in Britain's Opium War dates back to at least 1958, when Dr. Timothy Leary conducted his first experiments with LSD at the Foundation's Kaiser Experimental Hospital in San Francisco.

The other institution currently involved in financing the hospice project is the Joseph and Rose Kennedy Institute for the Study of Human Reproduction and Bioethics at Georgetown University. (3)

In October, 1978, the first annual National Hospice Organizing Meeting took place in Washington, D.C.; the two keynote speakers were Senator Edward Kennedy, now chairman of the Senate Judiciary Committee and a ranking member of the Senate Public Health Committee, and Secretary of Health, Education and Welfare Joseph Califano.

The Order of St. John also maintains significant influence on the board of directors of the Ford Foundation, the world's largest tax exempt funding conduit for dionysian cults. On the board are John Loudon, a Commander in the Knights of St. John, the chairman of Royal Dutch Shell, and the present President of the World Wildlife Fund (the funding conduit for the terrorist component of the environmentalist movement worldwide) (4) and Eugene Black, another Knight and former director of the World Bank. The foundation's current policy thrust was charted during the 1951-54 period when its associate director and policy formulator was Knights Commander Robert M. Hutchins, whom we met earlier as a controller of the Capone mob.

The Ford Foundation gives multimillion dollar annual grants directly to the Royal Institute of International Affairs; it is also the principal funder of the Drug Lobby in the U.S. In 1972, the Foundation established the Drug Abuse Council with a $1 million war chest which has been refilled every year since. (5)

As its first public act, the Drug Abuse Council issued a widely circulated report advocating the decriminalization of marijuana, a tenfold increase in methadone (synthetic heroin) clinics, and the British system of legalized government-sponsored heroin addiction. Following the release of that report, the Kaiser Foundation and the Commonwealth Fund established a matching fund that more than doubled the annual revenues available to the Drug Abuse Council to push drug legalization.

Jacob Javits and organized crime

From this level down, the so-called "liberal" drug decriminalization lobby is thoroughly interlocked with organized crime, by those forces whose monetary interest lies in the expansion of the drug market.

The interlock is keyed around the Zionist Lobby, and more precisely around the person of Senator Jacob Javits (R-N.Y.). It has been reported by several knowledgeable sources that Senator Javits gets his orders several times a week at private planning briefing sessions at a number of exclusive New York City apartments. Among those present are Arthur Ross of London's International Institute for Strategic Studies and a subagent of Rio Tinto Zinc's Mark Turner, Rio Tinto Zinc's Sam Harris, Nahum Bernstein of the Jerusalem Foundation, and Warburg, Pincus's Henry Simon Bloch. This, in turn, is the same circle that maintains ownership of the Bronfman family.

Startling evidence of this Bronfman-Javits relationship surfaced in 1977 when bribery and extortion were employed to pass a marijuana decriminalization bill through the New York State Legislature and to subsequently cover up the findings of a legislative investigating committee that showed a 300 percent jump in adolescent marijuana abuse in the state following decrim. As the sponsor since 1968 of legislation to federally decriminalize marijuana, Javits (along with cosponsor Edward Koch, now Mayor of New York City) was the most outspoken organizer for the New York State marijuana legalization bill.

During the 1977 legislative session, the bill was defeated. In an unprecedented move pushed by the senior U.S. Senator, Governor Carey personally conducted a pressure campaign on behalf of a reintroduced version of the same bill, which passed by one vote in June, 1977. The decisive vote was cast by a severely ill hospitalized member of the legislature who was helicoptered back and forth from his sickbed by state police on personal orders from the Governor.

These extraordinary measures were perhaps clarified several weeks later when Edgar Bronfman made a personal "loan" to Carey of $350,000 to pay off the Governor's outstanding 1974 campaign debts. The loan was in violation of state and federal campaign financing laws.

Like the Bronfman family itself, Javits's direct connections to organized crime and drug trafficking run deep. According to affidavits on file from the Internal Revenue Service and the Securities and Exchange Commission, Javits functions as a listening post and conduit of classified government information for the Lansky syndicate.

In one recently publicized incident, Javits provided Lansky and other crime figures with information on IRS moves to secretly shut down a multibillion dollar tax loophole that enabled mob investors in the domestic coal industry to claim 500 percent tax write-offs on their investments. Through Javits's "tip" Lansky and Co. made a huge, final move to take over the independent coal operators 24 hours before the new codes went into effect. Another crime figure implicated in the coal industry killing was Richard L. Herring, a Georgia-based intermediary of Robert Vesco. In ad dition to his involvement in the creation of the offshore Caribbean "dirty money" apparatus through Investors Overseas Services, Vesco is a known collaborator of Lansky's in running the Caribbean Silver Triangle drug traffic in heroin, cocaine, and marijuana. (6)

Javits's links to Lansky and Vesco surfaced in yet another context in October, 1978. After a several ton marijuana bust off the coast of Massachusetts, the defendants were represented in court by James Lawson, the head of the state chapter of the National Organization for the Reform of Marijuana Laws (NORML). NORML is the principal public lobby for the decriminalization of marijuana and addictive drugs in the U.S. Sitting on its Advisory Board is Sen. Jacob Javits. Evidence surfaced in the course of the trial that the front money for the captured marijuana shipment had been provided by Meyer Lansky and Robert Vesco. (7)

Should there be any lingering doubt in the reader's mind that Javits is a witting conspirator in the campaign to poison the country through drugs, the following should be considered. From 1940 to 1942 Javits was the Assistant to the Chief of Chemical Warfare, Office of Strategic Services. From 1954 to 1956, as New York State Attorney General, Javits administered a clandestine experiment on the effects of LSD in conjunction with the Central Intelligence Agency. At least one active duty military officer died as the result of being given an unsolicited dose of LSD — an incident which Javits covered up and which only came to light through recent Freedom of Information Act disclosures. (8)

Javits is, of course, the unofficial public head of the Zionist Lobby in the United States. He is the National Chairman of the Anti-Defamation League of B'nai B'rith, and a board member of the American Jewish Committee, the Zionist Organization of America, and the Amer-Israel Cultural Foundation.

Kennedy's NORML

Next to Jacob Javits, the most outspoken drug lobbyist in Washington, D.C. is Senator Edward Kennedy, the sponsor of the other pending marijuana decriminalization bill. As the new chairman of the Senate Judiciary Committee, Kennedy has necessarily steered away from Javits's open lobbying posture on behalf of drugs in order to maintain a modicum of credibility among the powerful law enforcement lobby. Yet the Kennedy family is directly represented on NORML's advisory board by ex-brother-in-law Peter Lawford.

Like Javits, Kennedy too is up to his neck in Lansky-Vesco offshore criminal activities. At the top of Kennedy's 1976 campaign contributors list is Joseph Linsey, a leading Zionist Lobby "philanthropist," who is also known as the kingpin of organized crime in New England. Linsey is a business partner of Meyer Lansky in the International Airport Hotel Distributing, Inc.

The Kennedy fortunes are even more directly linked to Lansky through the already documented Resorts International-Intertel interface. Nowhere is this interface more evident than in New Jersey, where a combination of Justice Department "water-gating specialists" teamed with a $1 million Resorts International lobbying and payoff campaign to legalize casino gambling.

New Jersey Governor Brendan Byrne, who was recruited out of the Essex County Prosecutor's office by the Kennedy Justice hands and installed in the Governor's mansion, is a nationally prominent spokesman for drug decriminalization. As Chairman of the Law Enforcement Assistance Administration (LEAA) National Advisory Committee on Criminal Justice Standards and Goals, Byrne commissioned a series of studies supporting decriminalization of marijuana and casino gambling.

NORML, the clearinghouse organization for the various local dionysian cults and Zionist Lobby "liberal" legislators, is itself a thinly veiled cover through which the poisoning influence of organized crime is extended into the high schools and neighborhoods of the country. NORML is virtually indistinguishable from the drug cult-pornographic magazine High Times, which boasts a several hundred thousand circulation predominantly among high school age drug users.


The magazine features dozens of pages of advertisements for drug paraphernalia, instructions on the production and use of legal and illicit drugs, and pornographic photographs and interviews with various "high priests" of the drugrock cult. Through the revenues of High Times, through an average of $100,000 per year in tax exempt grants from the Playboy Foundation, and through "frequent anonymous contributions from drug dealers," NORML is financed. (9)

The Advisory Board of NORML includes (in addition to Javits and Peter Lawford): Max Palevsky, chairman of the board of the Xerox Corporation; Hugh Hefner, owner of Playboy Enterprises, Inc.; William F. Buckley Jr.; Burton Joseph, Director of the Playboy Foundation; Canon Walter D. Dennis of the Cathedral of St. John the Divine in New York City, the " temple and headquarters" of the Order of St. John of Jerusalem in the United States; and Stewart Mott, heir to the General Motors fortune.

NORML's general counsels Michael Kennedy and Gerald Lefcourt, are also connected to terrorism through their defense of the Puerto Rican FALN (Armed Forces for National Liberation) and Weather underground leader Mark Rudd.



  1. Karen Steinherz and Marie Mendez, "The Hospice Movement -Taking the Pain Out of Genocide," New Solidarity, Vol. IX, No. 62, October 6, 1978. See also Sandol Stoddard, The Hospice Movement (Briarcliff Manor, New York: Stein & Day, 1978).

  2. Seminar listings for the Fifth Institute on Drugs, Crime and Justice in Britain, held in London in July 1978. The Institute has held five such annual conferences at the Imperial College of the University of London, bringing American university students and American public health officials to study drug abuse in Britain and the "British Model" of treatment.

  3. Steinherz and Mendez, op. cit.

  4. Who's Who in America (Chicago: Marquis, 1974); Annual Reports of the World Wildlife Fund of America, 1976 and 1977; see also, The Foundation Directory, 5th Edition (New York: The Foundation Center).

  5. Ford Foundation Annual Reports, 1972-78, and The Drug Abuse Council Annual Reports, 1972-77.

  6. NBC-TV News broadcast transcript, "Coal Fraud," Reporters Ross and Silverman, September, 1978.

  7. Federal District Court Records of the First Circuit Court, Boston, Massachusetts. Additional information was provided on drug charges by New England-based officials of the Drug Enforcement Administration in September, 1978.

  8. In 1976, following Congressional hearings into the intelligences community, the files pertaining to the Central Intelligence Agency's MKULTRA, BLUEBIRD and ARTICHOKE programs were released to the public. The FOIA documents reveal extensive details of the CIA and Army's experiments with mind control techniques including LSD. In 1977, Renee J. Roberts, the daughter of Harold Bauer who died as the result of a dosage of a hallucinogenic drug administered to him at the New York State Psychiatric Institute as part of an Army-contracted experiment, began a civil damages suit against offiicials responsible for failing to investigate the circumstances of her father's death. Sen. Jacob Javits is a defendant in that suit, stemming from his position as New York State Attorney General at the time of Bauer's death.

  9. Interview with Keith Stroup, Playboy Magazine, 1978; see also issues of NORML Newsletter describing anonymous contributions.

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On October 18,1978, the authors of this book met in Washington, D.C., with eight officials of the Federal Reserve Board of Governors, including Mr. John E. Ryan, director of Banking Supervision and Regulation, and Mr. Robert Mannion, director of the Board of Governors' legal department. Present were two lawyers for the Hong Kong and Shanghai Bank, including the HongShang's chief legal counsel in the United States, Mr. Steuart

L. Pittman. At this meeting, the authors presented evidence incriminating the HongShang in the international narcotics traffic and argued that the Federal Reserve should block HongShang's proposed acquisition of 51 percent of the shares of the $20 billion Marine Midland Bank of New York. On October 25, a similar meeting was held with officials of the New York State Banking Authority, including New York State Deputy Superintendent of Banking William Heany.

Also, portions of the manuscript have circulated in photostat form for several weeks prior to publication through the State Department, Treasury Department, Drug Enforcement Administration, and related enforcement and regulatory agencies.

In public meetings and radio and television appearances in a dozen cities in the United States, the authors have outlined the contents of this book before a broad and diverse audience. Through these various channels, word has gotten out.

Most readers will have asked themselves the question that the authors have been asked often in the course of this report's preparation: "How will the powerful men who stand behind the narcotics traffic react to this exposure?" The answer is already evident, at least in part. On November 11, European collaborators of the U.S. Labor Party team conducted a public meeting in Paris to present the results of the investigation. The meeting was attacked by 20 hooded and armed members of the fascist organization, Betar. French police were on guard and prevented injuries to members of the audience, but one policeman was injured by the assault. The French authorities believe that the attack was ordered by the Mossad, Israel's foreign secret service. The Betar was founded in the 1930s by Yakob Jabotinsky, a Polish Zionist who modeled himself on Benito Mussolini, and who was the mentor of present Israeli Prime Minister Menachem Begin. Undoubtedly, the decision to launch an attack against not only the collaborators of the authors, but the French police — who know well how to deal with such matters — indicates a great fear in the perpetrators of the narcotics traffic.

What this report has intersected, however, goes far beyond the petty thuggery of the Mossad. Discreetly, officials of the HongShang warned the authors shortly after the cited meetings in Washington what would happen to the United States if they persisted: "You know, of course," an official said, "that the British government has made representations to the American authorities on behalf of the HongShang, which is after all a British bank. American banks have had pretty much a free run of it all in London, and we British rather feel that we should have the same privileges here. If the American authorities give us any trouble, the Bank of England will start exhuming skeletons from the closets of the American banks."

In fact, the British had already surfaced an undercover agent in New York's Citibank in mid-July, a junior official named David Edwards, who sued the bank for $14 million and made numerous allegations of illegal money transfer operations. Recently, after the HongShang official made the statement quoted above, the Edwards case has taken a new turn. On November 5, Katharin Graham's Washington Post added major new expose material to Edwards's original allegations, citing its own sources inside Citibank. The authors have learned that Katharin Graham is personally directing Edwards's appearances before one Senate and three House of Representatives committees.

Coming at a time when the British banks are making a massed bid to acquire American banking assets, the inside-outside job against Citibank is ominous. Apart from the HongShang's cited plan to acquire Marine Midland, the Canadian Bank of Montreal wants to buy out 81 retail branches of New York's Bankers Trust; Standard and Chartered Bank wants to buy up the $3 billion Union Bank of Caliornia; and buy-out attempts or branch office openings are in the works involving Barclays Bank, National Westminster Bank, Bank Leumi, Bank Hapoalim, and other financial institutions implicated in the world narcotics traffic. An invasion is on against the already weakened American monetary system, and the evidence suggests that the British dope-runners are deliberately seeking to destabilize American banks to further this invasion.

Apart from the dirty tricks operations aimed at American banks, numerous other attempts will emerge from the dope-traffickers to cushion themselves from the impact of this report. Lower-level operatives, expendable portions of the network may be sacrificed, the way that assassins like Lee Harvey Oswald or Sirhan Sirhan were sacrificed by their masters.

But the enemy cannot recoup what it has lost. The $200 billion dope trade cannot be hidden; it can only be protected through misdirection. The web of lies now hangs in tatters. If the American public forces its legislators and law enforcement officials to act, Dope, Inc.'s defense will no longer avail. The first blood has already been drawn from a group of gentlemen who have been long accustomed to working at a distance from the combat zone.


The terms of the battle have been redrawn to make an American victory possible.

- Konstandinos Kalimtgis
- David Goldman
- Jeffrey Steinberg
New York City

November 17,1978

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