The implications of the message were firstly that the CIA was bypassing the Australian
government and virtually demanding that ASIO intervene and pressure the
that ASIO has an obligation of loyalty to the CIA to do so. The message was not meant to
be passed on to Whitlam. However, the acting head of ASIO was a Whitlam appointee who saw
the seriousness of the matter. He handed the cable to Whitlam. The cable was made public
several years later.
The cable also made it clear that the CIA had been deceiving Australian government
about Richard Stallings and Pine Gap. What else were they deceiving the Australian
The cable also implied that the CIA would threaten to cut off the flow of intelligence
information to the Australian services, and perhaps take even more strenuous
As Shackley's cable indicated, there were several other CIA men working under cover in
Australia. Their identities had not been revealed by Whitlam, but by the
media. Nevertheless, there was no way for Shackley and the CIA to know how much Whitlam
how much he would reveal to the public, especially about Pine Gap, but also about other
CIA activities in Australia. Shackley may have already known that Whitlam had begun to
look into CIA matters in Australia.
By revealing what he knew already, Whitlam had telegraphed his
intentions. He had to be stopped.
Whitlam did not have the opportunity to present the proof he had about CIA involvement
in Australian politics to Parliament on November 11. He was dismissed by Governor-General
Sir John Kerr at 1:10 p.m. that day.
What may be nearly as unfortunate as the Dismissal of an elected government is the
timing of Whitlam's revelations about the CIA and Anthony. Labor Minister Clyde Cameron,
wrote in his diaries, "Once his allegations hit the headlines, the sources dried up
immediately." (The Cameron Diaries, p. 499). Whitlam had moved too
CIA IN CRISIS
Even in November 1975, speculation about CIA involvement in the Dismissal was rife.
Since that day, speculation has not dampened.
Yet from the time allegations about Richard Stallings and Pine Gap hit the papers, the
CIA and the American government denied any involvement in Australia.
This is understandable, considering that while the events of the dismissal unfolded,
several Congressional committees were investigating the CIA's activities all over the
world. The CIA were facing pressures never before encountered. On November 2, 1975, the
same day Whitlam made his accusations about the National Country Party being funded by the
CIA, Henry Kissinger fired CIA director William Colby for being too honest with Congress.
The CIA was in trouble.
If Whitlam had stood up in Parliament on November 11 and revealed that Pine Gap was a
CIA-run installation and that the CIA were funding political parties in Australia, the
U.S. Congress may have initiated an investigation into CIA activities in Australia. It is
bad enough to undermine a third world government, but to undermine an ally is worse. The
CIA would have been condemned and swiftly re-organised or worse, possibly shut down
Therefore they continued to deny any involvement in the political events in Australia,
and hoped the matter would fade away.
STRAIGHT FROM THE HORSE'S MOUTH
Despite CIA denials, a picture has formed of their dirty tricks in Australia. And much
of the evidence comes straight from the mouths of CIA employees.
Former CIA deputy director of intelligence, Ray Cline, denies that there was any
"formal" CIA covert action program against the Whitlam government during Cline's
time in office (Cline left the CIA in 1973). "I'm sure we never had a political
action program, although some people around the office were beginning to think we
should." He explains that the U.S. and Australia had a very healthy relationship in
the area of intelligence exchange. "But when the Whitlam government came to power,
there was a period or turbulence to do with Alice Springs [Pine Gap]." He went on to
say, "the whole Whitlam episode was very painful. He had a very hostile
Cline denied direct CIA interference, but outlined a scenario he saw as acceptable U.S.
intelligence behavior. "You couldn't possibly throw in a covert action program to a
country like Australia, but the CIA would go so far as to provide information to people
who would bring it to the surface in Australia..." for example a Whitlam error
"which they were willing to pump into the system so it might be to his damage."
Such actions do not, in Cline's opinion, amount to a "political operation."
The method as outlined by Cline would be for the CIA to supply damaging information
which the Australian security services would use against the government, presumably via
other people, such as the media and the Opposition parties. This scenario fits well with
what others have said. A U.S. diplomat stationed in Australia at the time, tells how CIA
station chief in Australia, John Walker would "blow in the ear" of National
Country Party members, and not long afterwards, the Whitlam government would be asked
embarrassing questions in Parliament (The National Times, March 21-27, 1982).
Former Deputy Prime Minister Jim Cairns concurred that the methods used by the CIA
would be as simple as that. When asked if he thought the CIA were capable of interfering
with Australian politics, Cairns told the authors, "The CIA is capable, no
doubt." By interfering, Cairns means gossip, influencing people by words. He also
said it was not a "conspiracy" as such, but that these people are like that
anyway. That is, the CIA would seek out like-minded people: "They think the same way,
act the same way - it's not a conspiracy as such, just the way they think and act. And
it's still going on today."
The loans affairs are perfect examples where "gossip" could have been used to
good effect - and was.
WAS CAIRNS SET-UP?
The evidence that Cairns was set up is compelling. The motives may have been not only
to discredit and damage the Whitlam government, but also to get him out of the way. Cairns
was already one of the most popular Labor ministers for his leadership of the anti-Vietnam
war movement. His popularity rose over Christmas 1974, when as Acting Prime Minister he
flew to Darwin to view the destruction caused by Hurricane Tracy. As Deputy Prime
Minister, he would be the next in line to take on the leadership of the Labor Party. But
as he was even more left-wing and anti-American than Whitlam, the prospect of Cairns being
the next Prime Minister frightened the CIA. Even early on attempts were made to discredit
Cairns. For example, ASIO leaked their dossier on him to the Bulletin (June
1974). It indicated that ASIO's main concern about Cairn's was the "terrorist"
potential of his part in the anti-Vietnam war protests.
Far more startling are the facts concerning George Harris and the loans affair. The
letter Harris showed Cairns was from Commerce International, an arms dealing company based
in Belgium, and with widespread links with the CIA. Commerce International is a highly
classified topic at the CIA.
It does not seem completely clear how the Opposition obtained knowledge of the letter
with Cairns signature on it. However, Harris was seen with Phillip Lynch, Deputy Leader of
the Liberal Party, a few days before Cairns was asked in Parliament about the letter. If
Harris was legitimate, why would he leak the information to the Opposition?
Further evidence of a set-up was provided by Leslie Nagy, an intermediary at the
meeting between Cairns and Harris. According to Nagy, Cairns had left the meeting,
refusing to sign his name to a letter making a commitment to a brokerage fee. Yet minutes
later, to Nagy's surprise, Harris produced a letter with Cairns' signature agreeing to the
2.5% brokerage fee. While Harris denies that he set Cairns up, Cairns still does not
acknowledge that he signed the incriminating letter.
Lastly, the CIA themselves provided an interesting hint that there was some
sleight-of-hand in the loans affair. The National Intelligence Daily, the CIA's
intelligence gathering arm's top secret briefing document for the President reported on
July 3, 1975 that Dr. Cairns had been sacked, "even though some of the evidence had
been fabricated." An ASIO officer writing for the Bulletin in June 1976 concurred. He
said he believed that "some of the documents which helped discredit the Labor
Government in the last year in office were forgeries planted by the CIA."
Khemlani was a suspicious character from the word go. Why Connor chose to deal through
him in the first place, and why he continued to deal with him, is a mystery.
Khemlani's behavior during the 11 months of the loans affair was certainly peculiar.
The heads of the Treasury Department and the Reserve Bank had various lengthy discussions
about him. They asked the very pertinent question of why Khemlani had volunteered in the
first place, and why he continued to say he could get the $4 billion loan. After all,
Khemlani spent a great deal of time, and presumably a great deal of money, yet the
Australian government had never promised him anything in return and had never paid him a
cent. In fact, the arrangement was that Khemlani was to be paid by whomever provided the
loan, rather than by the Australian government. So where was Khemlani getting his money?
Why was he so patient, and why did he continue to search for the money when he was
promised nothing in return?
Khemlani's connections, and his activities after the Dismissal shed some light on the
Khemlani heard about the Australian loan from Thomas Yu, a Hong Kong businessman. Both
Yu and Khemlani's friend Theo Crannendonk had entered into a joint venture with Commerce
International's Gerhard Whiffen, CI's Singapore representative, in a proposal to ship arms
to the CIA backed rebels in Angola. The joint venture also included Chris Brading and Don
Booth. Booth was a former CIA employee. Brading was a pilot for Air America, a CIA airline
which operated extensively during the Vietnam war all over South East Asia.
It is highly possible that Yu sent Khemlani to Australia to conduct dirty tricks for
Interestingly, the CIA says it does not have any files on Khemlani. However, they told
journalists Brian Toohey and Marian Wilkinson that the NSA did have information on
Khemlani. The National Security Agency (NSA) is the U.S. intelligence organisation which
intercepts communications overseas to pass on to other intelligence agencies. It is not
surprising that they would have intelligence on Khemlani, as he was firing off telexes all
over the Middle East. The NSA was very active in monitoring communications in the area,
especially in the mid 1970s.
Several years after the loans affair, Khemlani was still up to his old tricks,
defrauding people of their money. In 1980, Khemlani financially ruined an American
businessman by the name of Charles Murphy. He left behind in Murphy's home suitcases full
of documents detailing many of his activities over the last couple of years, including his
connection with the Nugan Hand Bank of Sydney.
In 1978, Khemlani entered into a relationship with the Nugan Hand Bank's Cayman
Island's branch. The Nugan Hand Bank was based in Sydney from 1970. It collapsed in 1980
when one of its co-founders, Frank Nugan, was found dead in his car, with ex-CIA chief
William Colby's business card in his pocket. Nugan Hand Bank has since been found to have
extensive links to arms and drug dealing, and the CIA. Its list of employees reads like a
who's who of the CIA and U.S. military circles. The other co-founder of Nugan Hand,
Michael Hand, disappeared after the bank's collapse. Hand was employed by the CIA for
covert operations in South East Asia during the Vietnam War. Other Nugan Hand managers
included General Edwin Black (Commander of U.S. forces in Thailand), Rear-Admiral Earl
Yates (former Chief of Staff for Policy and Plans of the U.S. Pacific Command and a
counter-insurgency specialist), Patry Loomis (CIA employee), and William Colby, head of
It is not known if Khemlani's ties with Nugan Hand predated their relationship in 1978.
But in September of that year, he contacted them with a proposal to have Nugan Hand act as
a trustee for several of Khemlani's projects.
The papers held by Murphy also show that after his loan-raising activities with
Australia, he went on to pull similar stunts in several third world countries, including
Haiti, Sierra Leone, and Ghana.
In 1979, Khemlani was arrested by the FBI for stealing $1 million worth of bonds from
the Citizens National Bank in Chicago. He was given a suspended 3 year sentence for
turning state's evidence and fingering the Mafia people he was working for. U.S.
authorities informed ASIO of Khemlani's arrest. Why they told ASIO is not known, as there
were no Australian warrants out for his arrest.
Other evidence corroborates Khemlani's possible CIA connections:
- Former CIA employee Ralph McGehee came out with his own tell-all book on the CIA, Deadly
Deceits, following the example of Victor Marchetti and Phillip Agee, who in the
early 1970s released their own books about the CIA's nefarious activities. McGehee says
that the CIA played a major part in the downfall of Connor and Cairns by releasing forged
documents. The documents were tabled in Parliament to discredit and damage the Whitlam
government. The documents provided by Khemlani were among the forgeries.
- On November 11, 1975, Whitlam received a letter, along with a draft of a telex, which
shows the CIA involvement with Khemlani. The draft was found in a hotel room in Hawaii,
and was posted anonymously to Whitlam.
The draft reads:
DRAFT COPY ONLY
1. DO NOT TRANSMIT VIA PHONE OR LETTER. ENCIPHER BEFORE TRANSMITTING BY TELEX CONTACT 'LM'
AT 536 6009 FOR ASSISTANCE.
REFERENCE YOUR CORRESPONDENCE ON 11 OCT, 1975.
ON 16 OCT., MR. T. KHEMLANI WILL BE DEPARTING FOR SINGAPORE TO ARRANGE MATTERS IN CASE
GOVERNMENT CAPITULATION SEEMS NEAR.
IF NOT MR. KHEMLANI WILL RETURN TO AUSTRALIA ON OR ABOUT 26 OCT 75 TO CREATE FURTHER
NEWSPAPERS' EDITORIALS MUST CONTINUE TO PUT PRESSURE ON THE LABOR GOVERNMENT IF
CAPITULATION IS TO SUCCEED.
IF NECESSARY OFFER....
IF CAPITULATION DOES NOT SUCCEED BY 14 NOVEMBER 75, SUPPORT FROM OVERSEAS WILL CEASE
UNTIL MID 76. (Author's emphasis).
The draft telex appeared in the Sun newspaper in May 1977. The reporter said that the
CIA denied they had anyone with the initials 'LM' working in Hawaii.
But when a National Times newspaper reporter rang the number given in the
draft, they were connected to CIA headquarters in Hawaii.
WAS NUGAN HAND INVOLVED?
In 1981, a CIA contract employee, Joseph Flynn, claimed that he had been paid to forge
some documents relating to the loans affair, and also to bug Whitlam's hotel room. The
person who paid him was Michael Hand, co-founder of the Nugan Hand Bank. (The National
Times, Jan. 4-10, 1981).
THE BOYCE TRIAL
In 1977, more confirmation and details about the CIA's involvement in Australian
politics emerged when Christopher Boyce and Andrew Dalton Lee were arrested in the United
States for selling secrets to the Soviet Union.
Boyce started work in 1974 with TRW Incorporated, a Californian aerospace company which
did contract work for the CIA. Boyce's job was as a cipher clerk in the "black
vault", a code room where top-secret messages from American bases and satellites were
received and deciphered. Among the bases sending messages via TRW was Pine Gap.
Boyce and Lee were both disillusioned by the state of America. One day, whilst
discussing the Watergate scandal and the CIA inspired coup in Chile, Boyce said to Lee,
"You think that's bad? You should hear what the CIA is doing to the
Australians." He then told Lee about the deceptions practiced by the U.S. on the
Boyce and Lee decided that the best way to change things was to sell the secrets Boyce
learned in the black vault to the Soviets. Boyce would photograph documents, and Lee sold
them to the Soviet embassy in Mexico City. While Boyce's motivation was his idealism, Lee,
a drug-addict, was in it for the money.
They were caught in 1977. Lee was arrested for loitering outside the Soviet embassy in
Mexico City, and was brought back to the United States to face trial.
At his trial, part of Boyce's defence was that he was opposed to American and CIA
activities overseas, particularly in Australia. Boyce told of his initial briefing at TRW,
when he was informed that most of the communication received in the black vault came from
Pine Gap, and that despite an agreement between the U.S. and Australian governments to
share the information obtained at Pine Gap, the U.S. was not honoring the agreement.
"Certain information" was being withheld from Australia.
Boyce also told that Pine Gap was being used to monitor international telephone calls
and telexes to and from Australia, especially those of a political and business nature. In
addition, he said he had come across cables from the Canberra bureau chief to Langley
inferring that the CIA had worked to subvert Australian unions, especially in the
transport industry, and had funded the Opposition parties during Whitlam's term. The CIA
had been very concerned about an airport strike which would have delayed transportation of
new equipment to Pine Gap. According to Boyce, the cable he saw said "don't worry
about that, send the stuff, we'll take care of the strike the way we always do." (Sunday
Press, 23 May, 1982). He also told reporter William Pinwill that the CIA had a deep
distrust for the Whitlam government, and had a great interest in the "monetary
crisis" of 1975.
The fact that communications between Pine Gap and the U.S. were handled by a private
company was also news to Australia (The Sun, 27 May, 1977).
Boyce's lawyers had wanted to introduce evidence supporting Boyce's claims about CIA
activity in Australia. However, the judge complied with a CIA request not to allow it,
because of concerns about revealing secret government information.
Both Lee and Boyce were found guilty of selling secrets to the Soviets. Lee was
immediately given a life sentence. However, Boyce was sent for 90 days of psychiatric
evaluation, which indicated that he might get a light sentence, probably if he kept quiet
about the allegations concerning Australia. Boyce made it clear he was
"outraged" about the treatment of Australia, and was subsequently given a 40
year sentence. He is kept in solitary confinement.
In 1980, Boyce escaped from prison, and led the Federal Marshalls on an 18-month chase
before he was caught again. The total sentence he now has to serve is 68 years. The
circumstances surrounding his escape are very suspicious.
Despite repeated denials that Stallings was a CIA employee, Ted Shackley admitted
Stallings' affiliations in his cable to ASIO on the 8th of November, 1975.
Stallings went into early retirement in 1975 after suffering an injury in a car crash.
However, during his tenure as head of Pine Gap, Stallings complained bitterly about CIA
activities in Australia. According to Victor Marchetti, who knew Stallings well, Stallings
was "copping a lot of static from the clandestine guys operating out of Canberra.
Stallings didn't approve of the stuff at the time; he figured his information-gathering
operation at Pine Gap was being put at risk by the station chief's men, who were
interfering in Australia's political parties and labor unions." (Mother Jones,
JAMES JESUS ANGLETON
In June 1977, during the furore caused by the Boyce trial, Angleton was interviewed on
ABC radio's Broadband program, after complaints from ABC's top brass that the ABC had run
too many programs slamming the CIA. For "balance", they asked Angleton to come
on and give the Agency's point-of-view. Angleton had "retired" in 1974, but had
devoted several years to attempting to restore the CIA's battered image. Angleton
discussed many aspects of the "security crisis" which was the Whitlam government
(in his opinion), including Murphy's raid on ASIO, Pine Gap, and whether the CIA funded
political parties in Australia. When asked "If there was any funding by the CIA in
Australian politics or unions, would it have had to come through your office in the time
that you were there?" Angleton answered somewhat cryptically, "I will put it
this way very bluntly - no one in the agency would ever believe that I would subscribe to
any activity that was not co-ordinated with the chief of the Australian internal
security." (Freney, The CIA's Australian Connection, p. 29) . He did
not deny CIA funding, nor would he clarify his statement. He simply inferred that if the
CIA were involved in Australian politics and unions, ASIO would know about it.
In an interview with the Sydney Sun, the former CIA agent related what Richard
Stallings had told him. He said that Stallings had told him that the CIA station chief in
Canberra had channeled money directly to the conservative political parties (Liberals and
the National Country Party). Marchetti said that money was used to undermine the Labor
Party, since at least 1967. He also said that there were about six to eight
"upfront" CIA agents in Canberra, and up to 30 clandestine operatives throughout
Robert Lindsay, who wrote two books about the Boyce trial, interviewed a CIA agent who
wished to remain anonymous. The agent confirmed Boyce's allegations, but said that the CIA
involvement in Australia was more complicated than Boyce realised. The agent said that CIA
money was given to the Coalition and would probably have been sent through ASIO (Flight
of the Falcon).
When the authors contacted former Prime Minister Gough Whitlam, he politely declined to
answer questions regarding CIA involvement in Australian politics. He did however, suggest
that we read what he had said and written in the past.
While Whitlam was not able on November 11, 1975, to give his evidence to Parliament
regarding the CIA and Richard Stallings, he did raise the matter in Parliament on May 4,
1977, because of the allegations of CIA activity brought up by the Boyce trial and by
Victor Marchetti, a former CIA employee. Whitlam began by saying, "There is
increasing and profoundly disturbing evidence that foreign espionage and intelligence
activities are being practiced in Australia on a wide scale."
He went to speak about the Boyce trial, and said that he had suggested to Prime
Minister Fraser that he bring the matter to the attention to Justice Hope (who was still
conducting the Hope Royal Commission into intelligence organisations in Australia).
Whitlam then spoke about the cable sent to ASIO headquarters by Ted Shackley. He
commented that "In plain terms, the cable revealed that the CIA had deceived the
Australian Government and was still seeking to continue its deception. It confirmed that
Mr. Stallings had been employed by the CIA. The cable made it clear that the CIA was
making what was described, in the jargon of the trade, as an 'official demarche on a
service to service link' - in other words, without informing the elected Government of
Australia. Implicit in the CIA's approach to ASIO for information on events in Australia
was an understanding that the Australian organisation had obligations of loyalty to the
CIA itself before its obligations to the Australian Government. The tone and content of
the CIA message were offensive; its implications were sinister. Here was a foreign
intelligence service telling Australia's domestic security service to keep information
from the Australian Government."
Whitlam also read out the statement he had prepared in response to Doug Anthony's
question on notice for 11 November, 1975: "I did not disclose that Mr. Stallings was
a CIA agent. The Right Honorable gentleman [Anthony] did that. I was informed that Mr.
Stallings worked for the CIA, not by the head of the Australian Foreign Affairs
Department, or the United States State Department, but by the head of another of our
Departments which in turn was informed by a Department in the United States other than the
Whitlam then said, "The coup on 11 November prevented that answer being
given." (Hansard, May 4, 1977)
Whitlam also briefly discusses (for less than two pages) CIA involvement in the
"security crisis" in his book, The Whitlam Government,
1972-1975. He comments that the newspaper stories disclosing the identity of Stallings and
other CIA agents "greatly agitated" both Australian and U.S. security services.
"The CIA sent a cable to ASIO which must have been founded on the assumption that
ASIO would put its links with the CIA ahead of its obligations to the Australian
Government." He went on to say, "The episode lent colour to allegations that the
CIA had been eavesdropping on me and my Ministers and had influenced the Governor-General,
Sir John Kerr, to sack us."
However, Whitlam seems unwilling to say more than that. As he said in Parliament in
1977, "The difficulty which any head of government faces in responding to these
matters - or any former head of government...is that he is bound by obligations of secrecy
in the national interest. He cannot disclose what he knows. I readily acknowledge my own
obligation." (Hansard, 4 May, 1977, p. 1522). He will not reveal the
confidences given to him by, or information about, the American installations in
While Whitlam seems to accept that at the very least Australia should investigate
whether the CIA has interfered with Australian politics, he is not so sure of Sir John
Kerr's role in relation to the security crisis.
In The Whitlam Government, he says, "It is a fact that any country with the
technical resources of the U.S. can eavesdrop on anyone in the world if it feels the
effort worthwhile....It is not a fact, however, that Kerr, fascinated as he had long been
with intelligence matters, needed any encouragement from the CIA." (pp. 51-52)
"OUR MAN KERR"
Among Christopher Boyce's allegations is that the CIA chief at TRW had referred to
Australia's Governor-General as "Our man Kerr."
One of the most contentious questions about the dismissal was whether Kerr acted on his
own in dismissing Whitlam, or whether he was working to further someone else's goals. The
question has come up in relation to the Liberal-National Party Coalition, and to the CIA
and the intelligence community.
Kerr consulted with High Court Chief Justice Sir Garfield Barwick before making the
decision about the Senate deadlock. Garfield was a former Liberal minister. Perhaps more
serious than that are the allegations that Kerr was informed of the CIA and the
intelligence community's concerns about Whitlam.
Kerr had a long association with the intelligence community, particularly military
intelligence. During World War Two, he worked for the Directorate of Research and Civil
Affairs, part of military intelligence. Whilst in Washington, he was seconded to the
Office of Strategic Services (the OSS, precursor to the CIA). Kerr continued to work in
intelligence after the war in the School of Civil Affairs (later renamed the School of
Later he became involved with the Association for Cultural Freedom, which is said to be
closely affiliated with the activities of the CIA and U.S. State Department. He was also
the founding president of the Law Association for Asia and the Western Pacific (LawAsia).
Kerr went to the U.S. to obtain funds for LawAsia from the Asia Foundation. The Asia
Foundation was discovered in 1967 to be backed by the CIA. According to CIA man Victor
Marchetti, the Asia Foundation "often served as a cover for clandestine operations
[and] its main purpose was to promote the spread of ideas which were anti-communist and
pro-American." (CIA and the Cult of Intelligence, p. 178-79) Despite
this (or because of it?), Kerr again went to the Asia Foundation to obtain funds for
It is not known if Whitlam was aware of Kerr's association with the intelligence
community when he appointed him Governor-General. As Governor-General, Kerr was said to
take an unusual interest in foreign policy and intelligence matters.
So much so that, according to Brian Toohey, on November 8, the day that ASIO received
Ted Shackley's cable calling Whitlam a security threat, "a senior Australian defence
official" was sent to brief Kerr "about allegations from the CIA that the then
Prime Minister, Mr. Whitlam, was jeopardizing the security bases in Australia." (Financial
Review, April 1977). The official is believed to be Dr. John Law Farrands, chief
scientist at the Defence Department. He was probably sent by Tange. Farrands, Tange, Kerr
all denied that Kerr was briefed about the CIA's concerns. Whether Kerr was influenced by
the CIA's concerns is not known. But his timing of the dismissal is curious.
As can be expected, there is no "smoking gun" which links the CIA to the
demise of the Whitlam government. There is no substantial evidence that there was a
carefully orchestrated plot against Whitlam. Nevertheless, there is a large body of
evidence pointing to the CIA. As the Governor of Victoria, and a former judge, Richard
McGarvie says, "sometimes the most reliable evidence is circumstantial
Subtle means were used to bring down the Labor government. All that was necessary was
for the CIA to find like-minded people, and whisper in their ears information which could
be used to discredit and destabilise their mutual enemy.
The evidence pointing to the CIA's dirty dealings includes:
- Why did Sir John Kerr sack Whitlam on the same day that Whitlam was to provide proof to
Parliament that the former head of Pine Gap was a CIA agent, thus proving that the U.S.
had been misleading Australia about the bases?
- Whitlam was dismissed just weeks before the crucial Pine Gap contract was to be
- The CIA knew, and informed the U.S. President, that documents used to discredit Jim
Cairns were probably forgeries. How did they know? Did they provide them?
- Questionable loans brokers with links to Commerce International, itself heavily linked
to the CIA.
- A draft cable, allegedly from the CIA, admitting that Khemlani was in Australia to cause
- The Christopher Boyce allegations.
- The words of several CIA employees.
- The deep concern expressed by Ted Shackley's cable that Whitlam would reveal all about
Pine Gap and the CIA in Australia.
All solid evidence of CIA involvement - albeit circumstantial.
The only piece of the puzzle missing is a solitary fact, even small, that points the
finger at the CIA knowing and participating not only after the event, but before and
COUP DE GRACE
The CIA and the U.S. government have repeatedly denied CIA activity in Australia.
In July 1977, President Carter sent Assistant Secretary of State for Asia and the South
Pacific, Warren Christopher, out of his way to meet Gough Whitlam at Sydney airport.
Christopher delivered the following message from Carter: "The U.S. State
Department will never again interfere in the domestic political process of
Australia." (The Whitlam Government, p. 53 - emphasis added).
The Pine Gap treaty still stands.
The Reserve Powers of the Governor-General to dismiss a democratically elected
Government have not been revoked.
The CIA continues operations in Australia.
The events of November 1975 can be repeated.
On December 26, 1995 The Australian newspaper ran a front page story, using
newly unclassified documents dated July 1, 1974, dealing with President Nixon ordering a
full review of the relationship with the Australian Whitlam Government in the
Nixon, through Henry Kissinger, set out six areas to be investigated, all dealing with
the supposed security threat to the U.S. military bases from the Whitlam government.
Of most importance is that one of the six areas in this now-released memo has been
blacked out for security reasons.
This document is of vital importance to understanding that the Whitlam government was
indeed seen as a threat by those in power in Washington. The memo was addressed to the
acting Secretary of State, Secretary of Defense, the Director of the CIA and also sent to
the Joint Chiefs of Staff!
The censored area, taking up four lines of text, now seems to be the "smoking
gun" in the case. After twenty years the American Government still deems these few
lines of so vital importance that they are withheld from us completely. What the censored
order says is open to conjecture. Could it be an order to contact friends or agents within
the government or opposition parties? Could it be an order to destabilize the Whitlam
Or could it be an order to re-activate Sir John Kerr as an agent for the CIA?
We will not know until the document is unclassified completely.
We have the key in the lock, one more twist and the door will be wide open.
Steve Gerlach is a Melbourne based researcher. He founded the Australian JFK
Assassination Information Centre in 1992, and was its director from 1992 to 1995 and
editor of the Centre's magazine "Probable Cause". He now works independently,
and is employed as a researcher by a major Melbourne newspaper.
Adelaide Gerlach has spent eight years in Peru and
eight years in the USA. She has a BA (Hons.) in Politics and is employed
as a researcher in the Australian trustee industry.