Confessions of an Economic Hit Man

Doc’s prediction came true. MAIN lost millions of dollars in Iran, as did many of our competitors. Carter lost his bid for reelection. The Reagan-Bush administration marched into Washington with promises to free the hostages, to bring down the mullahs, to return democracy to Iran, and to set straight the Panama Canal situation.

For me, the lessons were irrefutable. Iran illustrated beyond any doubt that the United States was a nation laboring to deny the truth of our role in the world. It seemed incomprehensible that we could have been so misinformed about the shah and the tide of hatred that had surged against him. Even those of us in companies like MAIN, which had offices and personnel in the country, had not known. I felt certain that the NSA and the CIA must have seen what had been so obvious to Torrijos even as far back as my meeting with him in 1972, but that our own intelligence community had intentionally encouraged us all to close our eyes.

CHAPTER 21. Colombia: Keystone of Latin America

While Saudi Arabia, Iran, and Panama offered fascinating and disturbing studies, they also stood out as exceptions to the rule. Due to vast oil deposits in the first two and the Canal in the third, they did not fit the norm. Colombia’s situation was more typical, and MAIN was the designer and lead engineering firm on a huge hydroelectric project there.

A Colombian college professor writing a book on the history of Pan-American relations once told me that Teddy Roosevelt had appreciated the significance of his country. Pointing at a map, the U.S. president and former Rough Rider reportedly described Colombia as “the keystone to the arch of South America.” I have never verified that story; however, it is certainly true that on a map Colombia, poised at the top of the continent, appears to hold the rest of the continent together. It connects all the southern countries to the Isthmus of Panama and therefore to both Central and North America.

Whether Roosevelt actually described Colombia in those terms or not, he was only one of many presidents who understood its pivotal position. For nearly two centuries, the United States has viewed Colombia as a keystone—or perhaps more accurately, as a portal into the southern hemisphere for both business and politics.

The country also is endowed with great natural beauty: spectacular palm-lined beaches on both the Atlantic and Pacific coasts, majestic mountains, pampas that rival the Great Plains of the North American Midwest, and vast rain forests rich in biodiversity. The people, too, have a special quality, combining the physical, cultural, and artistic traits of diverse ethnic backgrounds ranging from the local Taironas to imports from Africa, Asia, Europe, and the Middle East.

Historically, Colombia has played a crucial role in Latin American history and culture. During the colonial period, Colombia was the seat of the viceroy for all Spanish territories north of Peru and south of Costa Rica. The great fleets of gold galleons set sail from its coastal city of Cartagena to transport priceless treasures from as far south as Chile and Argentina to ports in Spain. Many of the critical actions in the wars for independence occurred in Colombia; for example, forces under Simón Bolívar were victorious over Spanish royalists at the pivotal Battle of Boyacá, in 1819.

In modern times, Colombia has had a reputation for producing some of Latin America’s most brilliant writers, artists, philosophers, and other intellectuals, as well as fiscally responsible and relatively democratic governments. It became the model for President Kennedy’s nation-building programs throughout Latin America. Unlike Guatemala, its government was not tarnished with the reputation of being a CIA creation, and unlike Nicaragua, the government was an elected one, which presented an alternative to both right-wing dictators and Communists. Finally, unlike so many other countries, including powerful Brazil and Argentina, Colombia did not mistrust the United States. The image of Colombia as a reliable ally has continued, despite the blemish of its drug cartels.¹

The glories of Colombia’s history, however, are counterbalanced by hatred and violence. The seat of the Spanish viceroy was also home to the Inquisition. Magnificent forts, haciendas, and cities were constructed over the bones of Indian and African slaves. The treasures carried on the gold galleons, sacred objects and masterpieces of art that had been melted down for easy transport, were ripped from the hearts of ancient peoples. The proud cultures themselves were laid to waste by conquistador swords and diseases. More recently, a controversial presidential election in 1945 resulted in a deep division between political parties and led to La Violencia (1948–1957), during which more than two hundred thousand people died.