Return of Bolivia's Drug-Stained Dictator
By Jerry Meldon
A Latin American ghost from Washington's Cold War past is reappearing this summer. On Aug. 6, one of South America's most notorious drug-tainted military dictators, Hugo Banzer Suarez, will don Bolivia's presidential sash. That will make him responsible for battling cocaine traffickers in one of the world's top drug-producing nations.
The 71-year-old Banzer, a long-time U.S. favorite because of his anti-communism, forged the coalition that gave him the presidency after his Accion Democratica Nacionalista party won 22 percent of the vote in the June elections. Banzer's latest ascendancy set off alarms in Washington, despite the old Cold War ties.
A State Department spokesman warned of possible diplomatic strains if Banzer appointed Bolivian officials who "in other eras have been directly involved in narco-trafficking." In Latin America, however, the U.S. statement was viewed as an indirect reference to Banzer, who could not have survived politically in the violent world of Bolivian politics without the timely intervention of South America's drug lords.
In July 1980, for instance, while most Bolivians were enjoying a rare hiatus of non-military rule, Banzer was hiding out in exile in Argentina. Bolivia's civilian government was set to indict him for human rights violations and corruption during his 1971-78 dictatorship. But Banzer saw his political life saved when a grotesque band of old-time Nazis and younger neo-fascists -- financed with drug money and aided by the Argentine military -- overthrew the government in La Paz.
The coup was spearheaded by two men whom Banzer had introduced: Roberto Suarez, Bolivia's coca king, and Klaus Barbie, the Gestapo chief of Lyons whom Banzer had protected from French war crimes prosecutors. The victorious putsch -- known as the Cocaine Coup -- established Bolivia as a kind of narco-state. Saved by this mix of drug trafficking and anti-communism, Banzer returned home to resume his political career.
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Barbie, in particular, was already deep in Banzer's debt. After World War II, Barbie, known as the Butcher of Lyons for his work in Nazi-occupied France, was hired by the US Army's Counter Intelligence Corps (CIC) to run a spy network of ex-Nazi officers. But French intelligence agents -- seeking Barbie's arrest on charges of torture and murder -- picked up his scent. The CIC then contacted Dr. Krunoslav Draganovic, a rightist Croatian priest who ran a Vatican "ratline" which helped hundreds of Nazi SS officers escape from Europe. Draganovic arranged papers and transportation for Barbie to flee from Germany to Italy and then to Argentina and Bolivia.
When French Nazi hunters were closing in again a quarter century later, Banzer and other Bolivian officers stepped forward as Barbie's protectors. During his 1971-78 dictatorship, Banzer repeatedly rejected French requests for Barbie's extradition. Barbie returned the favor in 1980, recruiting a mercenary army of neo-fascist terrorists, including Italy's Stefano delle Chiaie.
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The 1980 coup put Generals Luis Garcia Meza and Luis Arce Gomez into the top offices. But Banzer's longtime allies -- Barbie and Suarez -- were the powers behind the throne. Suarez put Garcia Meza and Arce Gomez on his drug payroll. Meanwhile, Barbie kept his goon squad in place, terrorizing Suarez's rivals in the narcotics trade as well as the regime's political opponents.
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