Tuesday 14 October 2014

Abraham Lincoln : Conspiracy Theorist


"It will throw additional light on the latter, to go back, and run the mind over the string of historical facts already stated. Several things will now appear less dark and mysterious than they did when they were transpiring. The people were to be left "perfectly free" "subject only to the Constitution." What the Constitution had to do with it, outsiders could not then see. Plainly enough now, it was an exactly fitted niche, for the Dred Scott decision to afterward come in, and declare the perfect freedom of the people, to be just no freedom at all.

Why was the amendment, expressly declaring the right of the people to exclude slavery, voted down? Plainly enough now, the adoption of it would have spoiled the niche for the Dred Scott decision.

Why was the court decision held up? Why even a Senator's individual opinion withheld, till after the presidential election? Plainly enough now, the speaking out then would have damaged the "perfectly free" argument upon which the election was to be carried.

Why the outgoing President's felicitation on the indorsement? Why the delay of a reargument? Why the incoming President'sadvance exhortation in favor of the decision?

These things look like the cautious patting and petting of a spirited horse, preparatory to mounting him, when it is dreaded that he may give the rider a fall.

And why the hasty after indorsements of the decision by the President and others?

We can not absolutely know that all these exact adaptations are the result of preconcert. But when we see a lot of framed timbers, different portions of which we know have been gotten out at different times and places and by different workmen -- Stephen, Franklin, Roger, and James, for instance -- and when we see these timbers joined together, and see they exactly make the frame of a house or a mill, all the tenons and mortices exactly fitting, and all the lengths and proportions of the different pieces exactly adapted to their respective places, and not a piece too many or too few -- not omitting even scaffolding -- or, if a single piece be lacking, we can see the place in the frame exactly fitted and prepared to yet bring such piece in -- in such a case, we find it impossible not to believe that Stephen and Franklin and Roger and James all understood one another from the beginning, and all worked upon a common plan or draft drawn up before the first lick was struck.

It should not be overlooked that, by the Nebraska Bill, the people of a State, as well as Territory, were to be left "perfectly free" "subject only to the Constitution."

Why mention a State? They were legislating for territories, and not for or about States. Certainly the people of a State are andought to be subject to the Constitution of the United States; but why is mention of this lugged into this merely territorial law? Why are the people of a territory and the people of a state therein lumped together, and their relation to the Constitution therein treated as being precisely the same?

While the opinion of the Court, by Chief Justice Taney, in the Dred Scott case, and the separate opinions of all the concurring Judges, expressly declare that the Constitution of the United States neither permits Congress nor a Territorial legislature to exclude slavery from any United States territory, they all omit to declare whether or not the same Constitution permits a state, or the people of a State, to exclude it.

Possibly, this is a mere omission; but who can be quite sure, if McLean or Curtis had sought to get into the opinion a declaration of unlimited power in the people of a state to exclude slavery from their limits, just as Chase and Macy sought to get such declaration, in behalf of the people of a territory, into the Nebraska bill -- I ask, who can be quite sure that it would not have been voted down, in the one case, as it had been in the other.

The nearest approach to the point of declaring the power of a State over slavery, is made by Judge Nelson. He approaches it more than once, using the precise idea, and almost the language too, of the Nebraska act. On one occasion his exact language is, "except in cases where the power is restrained by the Constitution of the United States, the law of the State is supreme over the subject of slavery within its jurisdiction."

In what cases the power of the states is so restrained by the U.S. Constitution, is left an open question, precisely as the same question, as to the restraint on the power of the territories was left open in the Nebraska act. Put that and that together, and we have another nice little niche, which we may, ere long, see filled with another Supreme Court decision, declaring that the Constitution of the United States does not permit a state to exclude slavery from its limits.

And this may especially be expected if the doctrine of "care not whether slavery be voted down or voted up, shall gain upon the public mind sufficiently to give promise that such a decision an be maintained when made.

Such a decision is all that slavery now lacks of being alike lawful in all the States.

Welcome, or unwelcome, such decision is probably coming, and will soon be upon us, unless the power of the present political dynasty shall be met and overthrown.

We shall lie down pleasantly dreaming that the people of Missouri are on the verge of making their State free; and we shall awaketo the reality, instead, that the Supreme Court has made Illinois a slave State.

To meet and overthrow the power of that dynasty, is the work now before all those who would prevent that consummation.

This is what we have to do."

The Death of a Democracy: Greece and the American Conscience by Stephen Rousseas

Phillips Talbot, the U.S. ambassador in Athens, disapproved of the coup, complaining that it represented "a rape of democracy", to which Jack Maury, the CIA station chief in Athens, answered, "How can you rape a whore?" 
Note the Phoenix.





Chapter 1
The "New" Politics in Greece

On the afternoon of April 20, 1967, in the Old Psychico section of Athens, Andreas Papandreou, a deputy in the Greek Parliament and former minister in the Center Union government of 1964-65, was entertaining a member of the the central committee of the Danish Social-Democratic Party. Greek elections had been scheduled for May 28 and, in anticipation of a major Center Union victory, part of the discussion that afternoon concerned the implementation of an agreement for the training of Center Union politicians in Denmark. Later in the evening, Andreas Papandreou decided to sleep in his own home. It was one of the few times in several months that he had risked the chance since it was well known that the King and his American advisers were very disturbed over the prospects of a Center Union victory in the forthcoming elections and that a military coup by the King's followers was a distinct possibility.


    At 2:30 A.M. on Friday, April 21, a contingent of the American-equipped Greek army surrounded Papandreou's house. A few shots were fired into the air. At the same time, the sound of broken glass could be heard as the front door was smashed in. The immediate reaction of everyone in the house was that a gang of terrorists was breaking in to assassinate Andreas. With the help of his fourteen-year-old son, Papandreou was boosted onto the roof from an outside balcony on the second floor.


    Eight soldiers with machine guns, pistols, and rifles with fixed bayonets charged into the bedroom of Papandreou's twelve-year-old daughter and overturned the bed with her in it. The officers and the men under their command were very unsure of themselves and in a state of extreme nervousness. They ran around wildly, pulling everyone out of bed, shouting and screaming, "Where is Andreas? We want Andreas." They seized Papandreou's security guard and began beating him in the living room, trying to force him to reveal Andreas' whereabouts. After tyrannizing everyone, breaking open closets, and scattering the clothing around at random, they jabbed Papandreou's wife, Margaret, with their pistol butts and threatened to kill Papandreou's son unless he told them where his father was. At that point Papandreou gave himself up. As he jumped down four feet from the roof to the balcony, he cut his knee severely on an outside wall light. The soldiers started beating him and then shoved him into the bedroom and forced him to dress. He was then taken away, together with his security guard, who was later brutally beaten that night and the next day for having "lied."


    When they left, Margaret Papandreou drove up to Kastri, the home of her father-in-law, George Papandreou, the president of the Center Union. The streets were deserted and American Sherman tanks could be heard rumbling in the distance. At Kastri the situation was the same. The army had come for the former Prime Minister.


    At six o'clock in the morning an announcement was made on the radio informing the Greek people that the army had taken over the country in order to preempt a communist takeover. The announcement went on to list the articles of the Constitution which had been suspended by authority of the King. The coup had been carefully planned and swiftly executed. It captured the leaders of most political parties and arrested several thousand additional key members of political organizations on that first day. Since then, more arrests have been made, with approximately 20,000 persons in jail or crowded on a few barren islands in the Aegean which serve as concentration camps for political prisoners.


    The coup had been executed by a military triumvirate of relatively junior officers--Brigadier Stylianos Patakos, Colonel George Papadopoulos, and Colonel Nikolas Makarezos. Lieutenant General Gregorios Spandidakis was brought in at the final stages of preparation, with front-man Constantine Kollias, the chief prosecutor of the Greek Supreme Court, providing the civilian facade as Prime Minister.


    The Junta, lacking any popular base of support, started to consolidate its position in a series of edicts. The army was quick to issue its orders to the civilian population.

ARMY STAFF PROCLAMATION

In view of the decree of Law DXTH of 1912 "Concerning a
State of Siege" put into effect under Royal Decree No. 280
of April 21, 1967.

WE HAVE DECIDED AND
ORDER FORBIDDEN

(1) Gatherings in the open country of more than five persons.


(2) Gatherings in closed spaces, excluding public entertainments.


(3) The exercising by any means of anti-national propaganda, as well as the announcement or publication by any means, of information liable to cause anxiety or fear to the citizens and trouble public order.


(4) The carrying of arms and the possession by individuals of arms of any kind, including hunting rifles, munitions, explosives, any kind of fireworks, knives, knuckle-dusters, and any other similar weapons, as well as the construction and use of the same without a special permit from the military or police authority. Licenses given up to today cease to be of any value and those who possess the above articles are obliged, within two days from today, to hand over same to the nearest police authorities.


(5) The temporary medical treatment of persons not residing with the family which gives the treatment, if this is not stated within two hours to the nearest police authority.


(6) The possession, installation, and use of amateur radio stations and any means of receiving and transmitting.


(7) The hoarding and excess pricing of foodstuffs or of any other goods which serve the provisioning needs of the public, or the setting-aside of same for this purpose by anyone.


(8) Hunting. All licenses granted up to now are canceled.


(9) The violators of this order will be tried by the Special Courts Martial and will be punished according to the decree related to a "state of siege."

Athens, April 25, 1967
ANGELIS ODYS
Lieutenant General
Chief of Army General Staff

    In the days immediately following the coup, the radio blared martial music, broadcast talks filled with patriotic fervor, and provided the Greek people with a rationale for the coup--stability. Of a series of eighteen proclamations, two ran as follows.

Greek men and women! The Army's action in taking over the governing of the country was the immediate consequence of all that has happened up to now against our country. For many years Greece has been undermined. And for a considerable time she breathed in agony. She was on the verge of catastrophe. And she deeply felt the need to be saved by whatever means, even strong ones. Then she acted through the National Army. And Greece now lives again. We shall leave behind us all the bad past. And we shall enter upon a period of new prosperity and glory.

Stability is the wish of all Greeks. And the Army took over the governing of the country exactly for this reason. To restore, to stabilize, and to safeguard stability. Political, governmental, social, economic, and currency stability. This it will say: No more partisan dissension, partisan passion; no governmental crises; no spirit of the pavement, marches and clashes; no scandals, no getting salaries without working, no excess profits for the few and misery for the many. All these "nos" make up stability. And they thus constitute a big Yes: The yes to progress. Because without stability in all sectors, there is no progress. Neither economic development, nor work, nor prosperity.

No country progressed by every day changing its prime Minister. No nation advanced by making marches and demonstrations. Only stability brings prosperity and stability is brought by the Armed Forces with a national government which we have given to the country. [Italics supplied.]

    Democracy, clearly, was not to be allowed in the very country from which it sprang. Private as well as public expressions of dissent were not to be tolerated, and Greece, to use Colonel Papadopoulos' imagery, was to be strapped to the operating table and not allowed to rise until cured of her democratic ills. Article 18 of the Greek Constitution was suspended and the death penalty for political offenses was thus reintroduced into Greek political life. Systematically, and in order to "safeguard stability," all political opponents were hunted down. The leadership of the Center Union party was arrested along with those Center Union deputies known to be supporters of Andreas Papandreou. The deputies of the United Democratic Left were rounded up, as well as many other members of that party. One of the first casualties in this initial wave of mass arrests was Nikiforos Mandilaras, the brilliant Athenian lawyer who had served as the principal defense attorney in the politically inspired Aspida (Shield) trial involving twenty-eight army officers accused of high treason.(1) His defense made a shambles of the charges which had been manufactured by the High Command of the Greek army. He exposed their fraudulent base and he paid for this humiliation of the army with his life. His body was found washed ashore on the island of Rhodes.

 (1) The Aspida "conspiracy" concerns an alleged plot by left-wing officers to overthrow the monarchy and establish a Nasser-type dictatorship. Andreas Papandreou was accused of being the political leader behind the plot. Details of the Aspida controversy will be covered in subsequent chapters. The original Aspida Report is published in Appendix IV.

    The Junta had expected some resistance to the coup, and, indeed, would have welcomed it as proof of a communist conspiracy to take over the country. Instead, it was greeted with a stony silence. It was caught unprepared in that it had no consistent or well-conceived social program other than the promotion of stability and public order. It began by banning all local elections. Henceforth, local officials would be appointed. Then, through the talkative Brigadier Patakos, it announced the beginning of a puritan orgy of comic-opera proportions. A ban was announced on beards and long hair for men, and mini-skirts for women, tourists included. Church attendance at Sunday Mass was made mandatory for all students. Students were soon instructed to turn in their old history books and to purchase new ones, containing a section devoted exclusively to Greek kings with a full-page picture of King Constantine toward the end. The section on modern history gave glowing accounts of rightist regimes, and George Papandreou's 1944 liberation Cabinet was described as having had six communist ministers in it. One teacher announced to his class that he had been "asked" by the Education Minister to announce that he would deliver two lectures the following week on the reasons for the coup. He then told his class that as soon as the lectures were sent to him, he would give them.


     The need to maintain the racial purity of the Greek race was proclaimed, and some members of the University of Athens biology department began to revise the theories of Darwin and de Vries. Then, apparently in the belief that the fittest do not survive, the hierarchy of the Greek church was purged and the King's personal chaplain was installed as Primate of Greece. To protect Christianity and public order, it announced the revival of a 1942 law, passed during the Nazi occupation, requiring all legitimate theaters to submit scripts to a "Theatrical Plays-Control Board" for approval. The board not only was given the right to order deletions from any script, it was further empowered to rewrite parts of any play submitted to it for approval. Any theater faced with two rejections would be shut down, and any actor deviating in any way from an approved script would be severely punished. All plays of antiquity, by Aeschylus, Sophocles, Euripides, and Aristophanes, were to be similarly censored. The music of Tchaikovsky, Prokofiev, and all other Russian composers was banned. In the name of stability and order, new stop signs and traffic lights were installed and other enforcement measures were taken to bring the traditional chaos of Athenian traffic under control. It was announced, moreover, that any employee of a state-owned or -controlled public utility company who was late for work or otherwise not prompt, courteous, and attentive, would be fired. And in a modern variation on Mussolini's great achievement in making the Italian railroads run on time, the Junta decreed that any airplane of Olympic Air ways not on schedule would be required to pay a fine.


    Greece, in a classic parody of the 1930's, was being quickly transformed into the first fascist-type dictatorship to be seen on European soil since the days of Mussolini and Hitler. This was not, however, Greece's first experience with dictatorship. After twelve years of alternating dictatorships and republican governments (1923-35), and as a result of a rigged plebiscite, the present King's uncle, George II, returned to Greece. Within nine months he lost his short-lived taste for democracy and on August 4, 1936, installed one of his generals as dictator. General Metaxas died in 1941 as the Germans were invading Greece. King George then fled to London and finally to Cairo with a government-in-exile made up of royalist and conservative ministers.


     George II was openly involved in the coup of 1936. The role of King Constantine in the coup of 1967 is a bit less apparent. But one thing which will become clear, as the story of April 21 unfolds, is that Constantine was neither as innocent nor as reluctant as the American press had made him out to be. We shall be concerned throughout this book with the intrigues and the political ineptitude of this very non-constitutional monarch and his American advisers.

II

    The coup of April 21 had as its primary objective the prevention of the elections scheduled for May 28. It was a virtual certainty that the Center Union party would repeat its landslide victory of 1964. It is also clear that the coup would not have taken place were it not for the rapid political ascendance of George Papandreou's son, Andreas. In the short span of two years, Andreas Papandreou had emerged as the most prominent politician in Greece and, on the basis of his program for social and economic reform, he had earned the almost pathological hostility of the Palace, the Greek army, and the U.S. State Department, along with the U.S. Military Mission to Greece, and the CIA. With this powerful array of forces against Andreas Papandreou and his Center Union party, the coup of April 21, 1967, was a foregone conclusion.


    In the thirty-one years since the dictatorship of 1936, Greek politics has been firmly in the hands of the Palace and its right-wing supporters. Despite the volatility of Greek politics and its frequent excesses, this control never wavered and had never been seriously challenged. It is important to understand that Greece is a land where politics is the preoccupation of practically everyone. With the exception of the extreme communist Left, political parties have traditionally lacked any hard-and-fast ideological base. In this ideological vacuum, Greek politics emerged as a very fluid business, with parties tending to swirl around a few dominant personalities, and with the highly individualistic politicians quick to switch their allegiances as they alone saw fit. Party structure and party discipline have always been concepts apparently alien to the Greek mind. New alignments and grand coalitions were frequent phenomena on the Greek political scene. Greek politics had become a very personal game of shells and peas with more peas than shells to hide under.(2)


    In many ways this is a gross caricature of Greek politics and, like most caricatures, it exaggerates the surface of things without coming to grips with the underlying reality. But even if it were an accurate picture, it would have been more relevant for the past than for the future had not the coup taken place. A "new" politics had emerged in Greece. It threatened the old game of surface politics which never disturbed the underlying and controlling power relationships. Since the constitutional crisis of July 1965, which will be described in the next chapter, Andreas Papandreou had become a positive and major political force in Greece. He represented the "new" politics and soon became the nucleus around which a strong party was being formed with a meaningful program for reform and change. This in itself constituted a major threat to the existing economic and political oligarchies which had for so long ruled Greece unchallenged and undisturbed. The "old" game of politics had never threatened the traditional distribution of power. It lacked depth or commitment. In its very shallowness it had become a game of musical chairs, of vying charismatic leaders filled more with pomp than with achievements.

(2) One long-time foreign resident in Athens was moved to observe that if the American CIA had any real intelligence, it would have recalled all of its agents and replaced them with a team of clinical psychologists.

    This was all changed by a former U.S. citizen of twenty years standing. Andreas Papandreou was born in Greece in 1919 and was educated at the University of Athens during the Metaxas dictatorship. During his student days at the university he joined a left-wing student organization resisting the dictatorship. He was soon caught, imprisoned, and then exiled. He came to the United States and enrolled as a graduate student in economics at Harvard, where he taught and earned his Ph.D. in 1943. He became a U.S. citizen and volunteered for service in the Navy during World War II. After the war, he became a professor of economics at the University of Minnesota, went briefly to Northwestern University, and finally settled at the University of California (Berkeley) where he served as chairman of one of the most distinguished departments of economics in the United States. During his twenty-year stay in the United States, he was very active as a liberal Democrat. In Minnesota he worked for Hubert Humphrey in his Senatorial campaigns and later for Adlai Stevenson in the Presidential campaign of 1956.


     His first contact with Greek politics came in 1960 when he returned to Athens on sabbatical from Berkeley and as the holder of a Guggenheim Fellowship. While there he also served as economic adviser to the Bank of Greece. It was at his office in the bank that he first became aware of the extent of U.S. interference in the internal politics of Greece. Loughlin Campbell was then head of the CIA in Greece. He visited Andreas at the bank and asked him to arrange a meeting with his father, George Papandreou, who at the time was one of the leaders of a nucleus of parties in the process of forming what eventually came to be the Center Union. The stated purpose of the meeting was to discuss the adoption of the "kindred party system" for Greece. In the course of the discussion, it became clear that the real purpose of the visit was not to arrange a meeting with George Papandreou (which did not need the services of Andreas), but to get Andreas, as a U.S. citizen, to apply pressure on his father to accept the CIA-sponsored change in the Greek electoral system.


    Under the kindred party system each political party was to be listed under one of two classifications--nationalist and non-nationalist.The two right-wing parties, the National Radical Union (ERE) and the Progressive party (KP), and the variety of center parties then in existence, were to be grouped under the first category. All remaining parties, that is, the United Democratic Left (EDA) and other socialist and communist-front parties were to be placed in the "non-nationalist" camp. All parties would go into the elections independently of each other. After the election returns were in, the sum of both camps would be compared, winner take all. The parliamentary seats would then be divided among the parties of the winning group (nationalist, of course) on the basis of their relative standing in the nationalist sub-total. This was, obviously, a crude plan for the total disenfranchisement of the Left in Greece. The CIA had become alarmed when the United Democratic Left received 25 percent of the total votes cast in the 1958 elections. A truer figure would have been 33 percent in view of the manipulation of the elections, especially in the rural areas. But this 25 or 33 percent did not represent a communist resurgence in Greece. Much of it was made up of protest votes against the police-state methods of the National Radical Union government then in power--which was subsequently demonstrated by the rapid decline of the EDA votes in the 1963 and 1964 elections when the Center Union party came into power. In any event, the CIA was alarmed, particularly because the electoral system then in operation made the United Democratic Left the official party of the opposition. Under the kindred party system, the Left in similar circumstances would have been denied any parliamentary representation whatever, even if it had succeeded in getting 49 percent of the popular vote!


    Toward the end of the visit, Andreas Papandreou told Campbell that he would arrange the meeting with his father, if that was what the CIA wanted, but that he doubted his father would be sympathetic to such an arrangement; though strongly anti-communist, his father still retained some respect for the democratic system. At this point the head of the CIA mission in Greece stood up abruptly and, pointing his finger at Andreas, replied sharply: "You tell your father we get what we want." The meeting with George Papandreou never took place. In this one instance, the CIA did not get what it wanted. It did much better, however, on April 21, 1967, and before that on July 15, 1965, during the well-engineered constitutional crisis which brought down the Center Union government.


     From 1960 to 1964, when he officially ran for Parliament, Andreas Papandreou alternated between the Berkeley campus and Athens. Through his efforts, and with grants from the Ford and Rockefeller Foundations, the Center of Economic Research and Planning was set up under the sponsorship of the University of California. Andreas Papandreou became its first director. A highly qualified professional staff was hired and a steady flow of foreign economists came as visiting scholars. For the first time in the history of Greece, a systematic program for basic research in economics was undertaken, a plan for economic growth was developed, and a program was started to train qualified Greek economists for key posts in government and industry.


    Andreas Papandreou resigned his professorship at Berkeley to enter Greek politics in the elections of 1964. A great deal of pressure was put on Andreas by his father, but the explanation is not quite that simple. During the grand coalition of the center parties early in 1963, the problem arose over who would be the party leader of the combined forces. The two main contenders were the elder Papandreou (then seventy-six years old) and the relatively younger Sophocles Venizelos, son of the famous Eleftherios, and leader of the dominant Liberal party. As in most coalitions of this sort, the leader of the major party is always feared, and a great deal of opposition arose to Venizelos' candidacy. But rather than break up the coalition, a compromise was worked out whereby the elder Papandreou was designated head of the combined forces, with the understanding that Venizelos would succeed him upon his death.


    Constantine Mitsotakis, a subsequent defector from the Center Union government, led a group of deputies who also pressured Andreas into entering Greek politics--the idea being that he would act as major counterbalance to Venizelos, thereby increasing the chances of another compromise leader in the future, namely, one of themselves. As things turned out, George buried Sophocles, rather than the other way around.


    The Center Union won an absolute majority of the parliamentary seats in the elections of 1964. Andreas Papandreou was given the patronage-controlling position of Minister to the Prime Minister. He quickly came under attack by the far Left, the far Right, and by members of his own party who saw him being groomed as a successor to his father. He was looked upon as an arriviste, an ambitious power seeker. The charge of nepotism was raised, and Andreas Papandreou didn't help matters much by exuding a self-confidence and cockiness which only served to infuriate his opponents. The Left denounced him as a puppet and tool of the United States; it even went so far as to hint that he was a CIA agent.


    Andreas Papandreou was new to politics. After twenty-odd years as a professor, he was hardly prepared for the world of politics--and Greek politics is among the most intense and wildly competitive in the world. Many of his initial appointments, some of whom were professionally trained Greeks repatriated from the United States, turned out to be disastrous. His confidence in people was all too often misplaced. And he was unable to resist the flattery heaped upon him by his newly acquired camp of followers. All told, Andreas' performance as a politician was rather bad--about a grade of C, to gauge him by his prior occupation. And even if he had any innovating ideas of his own, there was always the restraining and vacillating influence of the Prime Minister, his father. In response to pressures from within his own party, he was removed as Minister to the Prime Minister's Office and reassigned as Alternate Minister to the Ministry of Coordination. This post was more in keeping with his professional training, but soon after he was assigned by his father to handle the exploding Cyprus problem.


    Despite its general ineptness and its floundering, the Center Union government of 1964-65 did introduce an air of political freedom which was unprecedented, and it did undertake certain social programs in education, agriculture, and economic development which were far reaching and popular with the electorate. The government, however, could not push its programs too fast. The Center Union government had become aware of the dissatisfaction and rumblings within the Greek army, and it knew that before it could proceed any further it would have to try to impose civilian control over the army. It was this attempt to control the armed forces, compounded by the Cyprus problem, which ultimately led to the constitutional crisis of July 1965 and the downfall of the Papandreou government. Details of these developments will be given in the next chapter.


    The Center Union government was in serious political trouble. It was being led by an old-time politician of doubtful antecedents. George Papandreou was known in Greece as "the Windmill"--a man who was by instinct a compromiser and capable of turning every which way with every change in the political wind--and also as a vain, gregarious, and unpredictable politician who was at the same time an eloquent orator and a powerfully charismatic leader. In the early days of the Center Union government, Andreas Papandreou was the much resented son of an aging politician who, no matter how much he might have disagreed with his father, did whatever he was told.

III

    What "made" Andreas Papandreou was the crisis of 1965. From July 1965 to April 1967 he created his own independent identity by stumping the country and showing a remarkable political courage. He broke away from his father's restraining influence, and introduced something new to Greek politics--a consistent, well-thought-out, and far-reaching program for Greece. Coupling this with a sometimes strident nationalism, and helped by the hysterical and all-too-frequent attacks on him by the right-wing press, he succeeded in capturing the imagination of the young people and many members of the professional and intellectual classes--though the latter still regarded him with suspicion as something too good to be believable.


    Above all, he had been dangerously outspoken against the King and had flatly stated that if the King were to trigger the army into a coup, the whole issue of the monarchy in Greece would subsequently be reexamined. He strongly implied, in other words, that in such an eventuality the entire royal household would once again be exiled and Greece transformed into a republic. He was the only politician in Greece who had dared to broach the subject publicly.


    It soon became popular in Greece to link the younger Papandreou with the late President Kennedy--as a man with style, intellect, and a program to get Greece moving again. It would have been more accurate, however, to have viewed him as having been caught in the unfortunate dilemma of being Robert Kennedy plus Hubert Humphrey rolled into one. Andreas, like Kennedy, had clearly set his eyes on the highest political office his country had to offer. Like Kennedy, too, he had risen very fast and had captured the imagination of the people. But, unlike Kennedy, his father was not a man of great wealth. Andreas and his father, by way of contrast, were both active politicians in increasing disagreement with each other. More important, for comparison's sake, the former Attorney General was able to quit Lyndon Johnson's Cabinet and, as Senator from New York, dissociate himself from the President's present policies and failures. Andreas, on the other hand, was more like Humphrey, in that it was very difficult for him to criticize the political leader of his party, who, in this instance, also happened to be his father. Yet the remarkable thing is that Andreas, despite the built-in limitation of his position, was able to generate sympathy for his dilemma and to give the very distinct impression throughout Greece of being far more progressive than his father. By December of 1966, as we shall see, he was on the verge of breaking with his father.


    Andreas' "radicalism," however, was nothing more than a mixture of the New Deal, the New Frontier, and the Great Society. But for Greece's semi-feudal, Byzantine structure, attitudes such as these are extremely radical, and Andreas was regarded by the far Right as a dangerous communist. The Right had little fear of Papandreou père. They knew him to be manipulable and a member in high standing of the old school of Greek politics; they also knew that he was a compromiser capable of adjusting his position easily under pressure. What the night feared most was that Papandreou fils would someday succeed his father as Prime Minister and carry out the programs he had so frequently publicized in his speeches and in his writings. And it was for this reason that the Right and its many newspapers attacked Andreas so relentlessly and with such abandon from July of 1965 until the coup of April 1967. And it was for this reason that the coup took place.


    The Right, however, was not alone in its opposition to Andreas. The extreme Left, which had stopped criticizing him since the crisis of 1965, regarded him now as a temporary expedient to be supported so long as it served their purposes, and within the Center Union party a few powerful deputies looked upon him as the major stumbling block to power. In all this, Andreas had eclipsed his father and had emerged as the de facto leader of his party. It was largely due to Andreas' meteoric rise, and the political ineptness of the King and his followers, that he emerged as the first serious threat to the Greek establishment in over thirty years.


    Throughout the entire postwar period, Greek politics had been polarized between the extreme Left and the extreme Right. Democratic socialists, liberals, and other political parties in the center had been splintered and ineffective. The extreme Left was well organized but, since the civil war of 1946-49, lacked any real possibility of getting into power through the ballot box or otherwise. The Palace, the army, the right-wing parties, and the U.S. presence were guarantees of that. The Right, therefore, had the held to itself. Occasionally, and only occasionally, a moderate Center government would take over for a very brief period of time. But regardless of what party was in office, the levers of power were firmly controlled by the Right. Thus, a pseudo-democratic, semblance of government was tolerated, so long as no one threatened to tamper with the existing institutional structure and the given distribution of power.


    The Right maintained full control over the machinery of State. The bureaucracy, the police, the rural gendarmerie, and the army were staffed with their own people. Greece, for example, was the only Allied country in which the collaborators were not purged from their official positions. Indeed, in the immediate postwar period, and just prior to the 1946 plebiscite on the return of King George, the army, the bureaucracy, the university, and the security forces were purged of republican job-holders. It is significant that none of the Metaxas appointees or university professors who had collaborated with the Germans were dismissed. But they couldn't have found very many liberal republicans in the 1946 purge. The dictator Metaxas had done a thorough job during his reign of terror and had bequeathed the purged branches of the governmental machinery to the German occupiers, who then turned them over intact to the British who, in turn, after the purge of 1946, handed them over refurbished to the Americans.


    The Center Union government of 1964-65, however, got a little too ambitious. It tried to exercise some control over this sub-level of government which was busily sabotaging its social and economic programs. The duly elected government was then summarily dismissed by the King in July of 1965. Since then, and up to the coup of April 1967, a series of Palace puppet governments were propped into power. When it became obvious that the Center Union party had not been broken and, under the de facto leadership of Andreas Papandreou, would win the constitutionally required elections, the Constitution was abrogated, the politicians were arrested, and an open military dictatorship was imposed upon Greece.


    It is time now to turn to a detailed examination of the series of events which led up to the coup of 1967.

Saturday 11 October 2014

Jacksonian Democracy : Populist White Supremacy & The Secret War Amongst the Whites

A Democratic cartoon from 1833 shows Jackson destroying the bank with his "Order for the Removal," to the annoyance of bank president Nicholas Biddle, shown as the Devil himself. Numerous politicians and editors who were given favorable loans from the Bank run for cover as the financial temple crashes down. A famous fictional character Major Jack Downing (right) cheers, "Hurrah! Gineral!"

Lithograph by Edward W. Clay. Praises Andrew Jackson for his destroying the Second Bank of the United States with his "Removal Notice" (removal of federal deposits). Nicolas Biddle portrayed as The Devil, along with several speculators and hirelings, flee as the bank collapses while Jackson's supporters cheer.


Old Hickory was not a WASP, or a Wall Street Man - General Jackson, the Indian Killer was a Zionist.

"There are two really important things that you need to know about Scottish Rite Freemasonry, which most people, even most Freemasons, are completely unaware of - first of all, it's not Scottish...!  and second of all, it's not Freemasonry!"

- Frater X,
Author of the Secret War Inside Freemasonry

Indeed. The Scottish Rite, it is true, is not Scottish, but rather mostly French.


So, too, was much of the Confederacy, in particular their planter class of slave-holding Southern Aristocracy.

You just have to look at the names of their Generals - there were surely no Northern a Generals named Beauregard or Lebaux.

This goes right back to the Louisiana Purchase and the Liberation of Haiti during the opening phase of the Napoleonic Wars - Bonnaparte's Corsican brand of Freemasonry, the Grand Lodge of the Orient, was a Federal, rather than colonial path towards New World Order, the intellectual forerunner and antecedent to the Brzezinski school of global dominance and imperialism.

A Federal, United Europe, one people, speaking with one voice, in one common tongue, worshiping one God, in one way, was the goal, back in 1798.

France had only recently lost the 7-Years War (perceptively called in retrospect by Winston Churchill "The real First World War"), largely owing to the fact that the French were ill-prepared to meet the challenge of overwhelming British Naval Maritime Supremacy, and either lacked or where totally outnumbered in terms of the key strategic outposts and bases required to patrol, harrass, blockade or sink British vessels and disrupt the movement of goods, supplies and lines of communication back to London.

The French may well have been able to beat the British and their mercenary armies in India (and they did), but the British could maintain constant, sustained power projection across the entire globe, fighting skirmishes all over the world, everywhere all at once, whereas the French couldn't, and defending non-productive overseas territories beyond Europe was very costly and made little strategic sense, leaving the French military and State as a whole severely over stretched and unable to peruse a proactive war policy, rather than just being purely reactive in it's approach to waging war.

The colonies were a liability.

The French would never have gone to war over the Falklands, and no Great European Imperial power ever would have - far too costly, to little (strategic) gain... You merely regain what it was you had before.

The Easr Timor tragedy happened because the Portuguese just left and face up defending their Indian Ocean colony.


But Napoleon needed cash, and lots of it, and besides European War Aims (what now would be called "Defending and Securing the Homeland") quite clearly took priority, and were far less reliant on luck and blind chance to successful overcome or avoid the tactical whims of fate and the Royal Navy.







This, at a stroke, was an explict abandonment and repudiation of all the efforts and all that had been done for nearly 200 years in terms of not just French attempts to project power and extend their influence into North America, indeed, the entire Western Hemisphere, but also essentially all Spanish efforts to make similar claims outside of Cuba in the Carribian and the Mexican Frontier (which was a lot of frontier), making possible the eventual emergence of the Munroe Doctrine, although men like Alexander Hamilton had already done much of the ideological legwork for the idea, some years prior.


New France, as of 1799 - You know, without any actual settlers, continental armies or any kind of Naval Fleet-in-being to guard the approaches to the Mississipi river system, this is really never going to get off the ground...



Proclamation 2914 - Proclaiming the Existence of a National Emergency -December 16, 1950




By the President of the United States of America
A Proclamation
Whereas recent events in Korea and elsewhere constitute a grave threat to the peace of the world and imperil the efforts of this country and those of the United Nations to prevent aggression and armed conflict; and
Whereas world conquest by communist imperialism is the goal of the forces of aggression that have been loosed upon the world; and
Whereas, if the goal of communist imperialism were to be achieved, the people of this country would no longer enjoy the full and rich life they have with God's help built for themselves and their children; they would no longer enjoy the blessings of the freedom of worshipping as they severally choose, the freedom of reading and listening to what they choose, the right of free speech including the right to criticize their Government, the right to choose those who conduct their Government, the right to engage freely in collective bargaining, the right to engage freely in their own business enterprises, and the many other freedoms and rights which are a part of our way of life; and
Whereas the increasing menace of the forces of communist aggression requires that the national defense of the United States be strengthened as speedily as possible:
Now, Therefore, I, Harry S. Truman, president of the United States of America, do proclaim the existence of a national emergency, which requires that the military, naval, air, and civilian defenses of this country be strengthened as speedily as possible to the end that we may be able to repel any and all threats against our national security and to fulfill our responsibilities in the efforts being made through the United Nations and otherwise to bring about lasting peace.
I summon all citizens to make a united effort for the security and well-being of our beloved country and to place its needs foremost in thought and action that the full moral and material strength of the Nation may be readied for the dangers which threaten us.
I summon our farmers, our workers in industry, and our businessmen to make a mighty production effort to meet the defense requirements of the Nation and to this end to eliminate all waste and inefficiency and to subordinate all lesser interests to the common good.
I summon every person and every community to make, with a spirit of neighborliness, whatever sacrifices are necessary for the welfare of the Nation.
I summon all State and local leaders and officials to cooperate fully with the military and civilian defense agencies of the United States in the national defense program.
I summon all citizens to be loyal to the principles upon which our Nation is rounded, to keep faith with our friends and allies, and to be firm in our devotion to the peaceful purposes for which the United Nations was rounded.
I am confident that we will meet the dangers that confront us with courage and determination, strong in the faith that we can thereby "secure the Blessings of Liberty to ourselves and our Posterity."
In Witness Whereof, I have hereunto set my hand and caused the Seal of the United States of America to be affixed.
Done at the City of Washington this sixteenth day of December in the year of our Lord nineteen hundred and fifty, and of the Independence of the United States of America the one hundred and seventy-fifth.

HARRY S. TRUMAN

By the President:
DEAN ACHESON
Secretary of State




Citation: Harry S. Truman: "Proclamation 2914 - Proclaiming the Existence of a National Emergency," December 16, 1950. Online by Gerhard Peters and John T. Woolley, The American Presidency Project. http://www.presidency.ucsb.edu/ws/?pid=13684.


PRESIDENT PROCLAIMS A NATIONAL EMERGENCY; 

AUTO PRICES ROLLED BACK; 

RAIL STRIKE ENDS; 

ALLIES GIVE UP HAMHUNG; 

WU REJECTS TRUCE



TRUMAN SETS DRIVE
Gives Wilson Sweeping Powers, Asks 'Mighty Production Effort'
U.S. RALLIES TO CALL
Congress Speeds Action-Stand of President Praised in Europe
By ANTHONY LEVIERO
Special to THE NEW YORK TIMES

RELATED HEADLINES

Strikers Return: Workers Heed Request of President -- Freight Jam Is Melting: Mails Moving Again: Pay Dispute Settlement Is Expected Quickly in Washington

Recent Auto Rises Canceled by First Price-Freeze Edict: 'Ceiling Regulation No. 1' of Economic Stabilization Agency Holds Schedules to Dec. 1 Levels -- Wage Study Set

OTHER HEADLINES

U.N. 'Trap' Alleged: Peiping Representative Says He Will Start Home Tuesday: Bids U.S. Quit Korea: 'Volunteers' to Withdraw if Formosa Also Is Yielded, He States

Paris and London Void Pacts in Arming Bonn, Soviet Says

Red China's Assets in U.S. Are Frozen: Washington Takes Unilateral Action -- Tightens Ban on Shipping to Mainland

Beachhead Is Cut: U.N. Troops Forced Back to Narrowed Area as Foe Perils Lines: Navy Shells Reds: MacArthur Aides Report Chinese Build-Up for Attack in West

Nyack Area Fears the Thruway Means Razing of 250 Buildings

U.S. Urges Defense Parley By All American Republics

Disaster Services Put on Alert Here: Wallander Orders Agencies to Be in Condition of Readiness on 24-Hour-a-Day Basis

Hanley to Get $16,000 State Job; Dewey Makes Good His Promise

Washington, Dec. 16--President Truman proclaimed a state of emergency this morning and delegated many of his own war powers to Charles E. Wilson, the new Mobilization Director. Soon afterward the defense program moved into higher gear.

Today was a day of action in the White House, in Congress and elsewhere in the Government as officials moved to implement the President's declaration to the nation and the world last night that the United States would meet the challenge of communism.

The Economic Stabilization Agency canceled the price increases made by Ford, General Motors and Chrysler in the last few days, and this was merely the harbinger of many new controls that eventually will encompass the entire economy.

Industry evinced its readiness to accept any war production goals, striking railroad men returned to work, and the general response from the public indicated an acceptance of the austerity program suggested by the President.

Proclamation Is Signed

Mr. Truman had pleaded for unity, like past Presidents coping with crises, and as in 1917 and 1941 the country was rallying with vigor.

In the free countries of Western Europe Mr. Truman was applauded for his no- appeasement speech in which he pledged to create an "arsenal of freedom" to strengthen all free countries. From Russia, which the President blamed directly for the postwar troubles of the world, came a typical blast that this country was warmongering.

Mr. Truman took two actions this morning to start a drastic increase of the mobilization program. He signed the proclamation of emergency, which unleashed scores of additional executive powers, and issued an executive order granting virtually blanket authority to Mr. Wilson to carry out all aspects of war production and economic control he deemed necessary. This authority received by Mr. Wilson will be subject in the Executive Branch of the Government only to the veto of President Truman.

Threat to Freedoms Cited

In his proclamation President Truman declared that conquest of the world was the objective of "Communist imperialism." He said this now constituted a threat to the freedoms guaranteed by the Bill of Rights, to the free enterprise system and to other rights, like collective bargaining, that free people had chosen for themselves.

These were the elements of a "full and rich life" that could be lost by the triumph of the Communist way of life, Mr. Truman said, calling for "a mighty production effort" for defense.

Mr. Truman called for sacrifices, for cooperation by state and local officials, for loyalty to the principles on which the nation was founded, and faith in our friends and allies. He expressed his confidence that the people would not be found wanting in courage and determination.

The President signed the proclamation in his Oval Room office in the Executive Offices of the White House at 10:20 A.M. Only a few members of his staff and photographers were present. His manner was brisk.

He would not pose for "one more" for the "One More Club," as he calls the photographers. They had to catch him in the act of really signing or lose the picture. Usually he will pose over and over again until each photographer gets a proper "shot."

That quickening of a mood was felt generally in the capital. The Senate Armed Services Committee approved a national civil defense program, the Senate Finance Committee met in extraordinary session to work on the excess profits bill and the Economic Stabilization Agency clamped a freeze on automobile prices, the first of many promised controls.

Having taken the necessary legal steps to speed mobilization, Mr. Truman, tired from two weeks of unusually heavy work, but apparently confident and resolute, went aboard the official yacht Williamsburg for an overnight rest. He took along a few friends and will return tomorrow afternoon.

Last week he had conferred daily with Prime Minister Clement Attlee of Great Britain on the Korean war and the larger world crisis. This week he had been in almost continuous session with members of Congress and Administration leaders, charting the course he disclosed in his speech last night.

The executive order spelling out Mr. Wilson's powers and responsibilities appeared to leave out nothing that the industrialist could desire to tackle his job in an untrammeled way. It had been predicted he would get powers exceeding those of James F. Byrnes when Mr. Byrnes was the top mobilizer of World War II, and the document bore this out.

"The director," stated the order, "shall on behalf of the President direct, control, and coordinate all mobilization activities of the executive branch of the Government, including but not limited to production, procurement, manpower, stabilization, and transport activities."

The phrase, "including but not limited to," left open the possibility that other areas of defense activity would be added. The next paragraph, numbered 3, subordinated William H. Harrison, Director of the National Production Authority, and Alan Valentine, Director of the Economic Stabilization Agency, "to the direction and control" of Mr. Wilson.

The fourth paragraph specified that the Director of the Office of Defense Mobilization should report to the President periodically, and established Mr. Wilson's authority over Cabinet members and other heads of Federal agencies where mobilization projects are concerned. Under the original concept of a partial mobilization, geared to what was then believed to be a comparatively small war in Korea, most of the control agencies were dispersed in the Federal departments. For instance, the National Production Administration was placed in the Commerce Department.

Many Powers Are Revived

This fourth paragraph gives Mr. Wilson ascendancy in the control of these dispersed agencies, and he is expected to consolidate them as he gets organized.

Completing the sweeping terms, Mr. Truman in the final paragraph stated that today's order should prevail over any prior executive orders or directives that prove to be inconsistent with it.

Mr. Wilson, who has resigned his $175,000-a-year position as president of the General Electric Company to take the $22,500 job of Director of Defense Mobilization, will have to be confirmed by the Senate before he can begin operating. There, was no doubt on Capitol Hill that he would be confirmed promptly.

The proclamation of emergency, apart from an important psychological effect it is expected to have on the approach of the average citizen to his part in the crisis, revived scores of powers which have been latent. Some of them had been rescinded by Congress in 1947, and some were enacted since then but could be given life only by the proclamation.

Most of them were nominal powers or pertained to particular facilities that had been built or leased by the Government, with the privilege of recapturing them in an emergency like the present. Some of the powers were important and extensive, however, like the broad ones authorizing recapture of the many airfields and plants built during World War II.

But Mr. Truman already had the most critical powers for mobilization, vested in him by the Production Act of 1950, and it was this which he invoked in designating Mr. Wilson as the person who will implement them.

Tuesday 7 October 2014

Ray Donovan


DONOVAN CLEARED OF FRAUD CHARGES BY JURY IN BRONX
By SELWYN RAAB
Published: May 26, 1987


Former Labor Secretary Raymond J. Donovan and seven other construction executives were acquitted yesterday of state charges of fraud and grand larceny after an eight-month trial in the Bronx.

The jury deliberated barely 10 hours over two days. One juror, Caesar Brown, said later that little discussion was needed and that just one ballot was required to find each defendant not guilty.

When the last verdict was announced at 4:42 P.M. by the jury forewoman, Rosa Milligan, cheers and applause enveloped the courtroom. Most of the 12 jurors stood and applauded as they watched the defendants, their relatives and defense lawyers shouting with joy, embracing and slapping one another's backs. Backing of Reagan

In the same courtroom, when the trial began last September, the chief prosecutor, Stephen R. Bookin, had told the jury, ''This case is about greed, plain and simple.''

Mr. Donovan, who was the first sitting Cabinet officer to be indicted, came under scrutiny soon after his nomination t as Labor Secretary in December 1980. The charges against him did not involve his Reagan Administration position, but he resigned from the Cabinet two years ago, after having been ordered to stand trial.

Yesterday, in a statement from the White House, President Reagan said: ''I have always known Ray Donovan as a man of integrity, and I am happy to see this verdict. I have never lost confidence in him.''

Mr. Donovan and five other executives of the Schiavone Construction Company of Secaucus, N.J., were on trial, along with State Senator Joseph L. Galiber, Democrat of the Bronx, and William P. Masselli. Mr. Galiber and Mr. Masselli were partners in the now defunct Jopel Contracting and Trucking Corporation of the Bronx. Political Motive Charged

The eight men and their two companies were accused of scheming to defraud the New York City Transit Authority of $7.4 million on a subway construction project in the late 70's and early 80's.

Mr. Donovan steadfastly asserted his innocence yesterday, as he had throughout his indictment and trial. He maintained that the accusations by the Bronx District Attorney, Mario Merola, were politically motivated.

''It's a cruel thing they did to me,'' Mr. Donovan said as he left the courthouse in the South Bronx with his arm wrapped around his wife, Catherine, as they prepared to return to their home in Short Hills, N.J.

''After two and half years, this nightmare is behind us,'' the 56-year-old Mr. Donovan said earlier in an impromptu news conference in the corridor just outside the courtroom. ''The jury has reawakened my faith in our system of justice. It was shattered here for nine months.

''The question is, should this indictment have ever been brought? Which office do I go to to get my reputation back? Who will reimburse my company for the economic jail it has been in for two and a half years?''

Defense lawyers gambled on a strategy of not calling any witnesses after Mr. Bookin rested his case last month. The defense lawyers relied on summations in which they sharply attacked Mr. Merola and Mr. Bookin, saying the prosecutors had sought the indictment of Mr. Donovan for publicity and to advance their own careers. Interruption by Distraught Juror

After the verdict, the jury forewoman, Ms. Milligan, was asked in an interview whether she agreed with the defense contention that the case was politically motiviated.

''Yes, in some ways,'' Ms. Milligan, an X-ray technician, said.

Mr. Brown, a computer operator, declined to say how the jury's deliberations had been affected by an interruption Friday when a juror, Milagros Arroyo, became distraught and had to be dismissed from the jury.

Over the protests of the defense lawyers, the presiding judge, Acting Justice John P. Collins of State Supreme Court, seated an alternate juror Saturday and ordered the reconstituted jury to resume deliberating ''anew'' on Saturday.

Six of the eight defendants had refused to agree to the seating of the alternate juror and demanded mistrials, which Justice Collins denied Saturday. $13 Million in Defense Costs A lawyer for the Schiavone company, Theodore W. Geiser, said the legal costs for the Schiavone executives in the case ran to $13 million. Schiavone executives said that since the indictment in September 1984, the company had been disqualified from bidding on projects in New York State.

Defense lawyers said they would review Federal and state laws to determine whether the Schiavone company and the executives could sue Mr. Merola or the city for financial losses.s Companies Found Not Guilty The reconstituted jury of six men and six women deliberated about five hours Saturday and five hours yesterday. Almost half the time was spent listening to secretly recorded conversations involving Mr. Masselli and hearing the judge's definition of grand larceny in the second degree.

Each defendant was accused of one count of grand larceny and nine counts of falsifying business records in the first degree and offering a false instrument for filing in the first degree. Schiavone and Jopel also were defendants. Jopel, which is out of business and was not represented by a lawyer, was found not guilty, together with Schiavone.

The grand larceny count, which both sides agreed was the pivotal charge, carries a maximum prison sentence of seven years.

Yesterday, the jury listened to the tapes for about two hours in the morning. After lunch, the jurors asked Justice Collins to repeat his instruction on grand larceny. Forty minutes later, at 3:55 P.M., Justice Collins announced that the jury was returning. Taken to the Well

The eight defendants, who throughout the convoluted trial had sat in the front row of the spectators' section, were taken to the well of the courtroom and seated directly behind the desk of Mr. Bookin and two other prosecutors.

The jurors filed in at 4:08, with none glancing at the defendants. Courthouse lore holds that jurors never look at defendants when they are about to pronounce guilty verdicts.

Mr. Donovan, closest to the jury box, was the first defendant to arise. He looked directly at Ms. Milligan as she declared him ''not guilty'' 10 times.

As the verdict was about to be disclosed, Mrs. Donovan, seated in the spectators' section, dabbed with a handkerchief at her eyes and face and clutched the hand of a Schiavone employee at her side. Shouts From Jurors

It took Ms. Milligan 32 minutes to deliver the verdict - 100 times she said ''not guilty'' - on 10 counts for each of the eight men and the two companies.

After the jury had filed out - with some of the members shouting ''hallelujah'' and ''yippee'' - Mr. Donovan reached up to Justice Collins on the bench and shook his hand.

A defense lawyer, Theodore V. Wells Jr., wept as the verdicts were read. Later, Mr. Brown, the juror, said that it was Mr. Wells's cross-examination of a prosecution expert witness, an accountant, that convinced him and other jurors that the prosecution had no case.

''It took three years out of my life,'' Senator Galiber said in an interview after the verdict. ''But I am not angry. It takes too much time out of life to be angry.'' Denial by Merola

The president of Schiavone and a defendant, Joseph A. DiCarolis, denounced Mr. Merola and Mr. Bookin. ''Mr. Bookin took the facts and twisted them around for his own ambition, and Mario Merola gave him his blessing,'' Mr. DiCarolis said. ''Thank God for the jury system.'' Mr. Merola, at a news conference last night, denied that he had been politically motivated. The evidence, he said, had been uncovered during an investigation of the 1982 murder of Mr. Massellii's son, Nat, and another murder.

''I'm not ashamed,'' Mr. Merola said. ''We had an obligation to pursue these facts, and that's how we ended up indicting Schiavone, Donovan and the rest of them.''

Mr. Merola attributed much of the delay in the cumbersome trial to defense motions and tactics. He emphasized that both Federal and state judges had refused to throw out the indictment. Reports About Silverman

Justice Collins had ordered the jury sequestered, on May 14, after unconfirmed reports that a special Federal prosecutor, Leon Silverman, who investigated Mr. Donovan in 1982, had reopened an inquiry into possible perjury by Mr. Donovan.

Mr. Silverman refused to comment on the reports at the time, and his aides said he was in Italy on business until late in the month.

The prosecution based its case on 40 witnesses and 558 exhibits presented over seven months. Much of the evidence concerned intricate details about subway excavation and payments to subcontractors.

Defense lawyers relied on summations to refute the prosecution's contention that Mr. Donovan, while he was the executive vice president of Schiavone, had conspired with the other defendants to cheat the Transit Authority.

The tangled case arose from an undercover inquiry by the Federal Bureau of Investigation of Mr. Masselli, who, in the late 70's, was identified by law-enforcement authorities as an associate in the Genovese crime group. Minority-Group Subcontractors

In 1978, Schiavone was awarded a contract to construct the IND East 63d Street tunnel between Queens and Manhattan. The contract called for Schiavone to make ''good faith efforts'' to award 10 percent, or $18.6 million, of the maximum contract price to subcontractors owned by members of minority groups.

Schiavone reported to the authority that it gave $12.4 million - two-thirds of the minority-group work - to the Jopel Company, headed by Mr. Galiber, who is black, and by Mr. Masselli, who is white, to haul dirt and rock.

The F.B.I. inquiry of Mr. Masselli ended abruptly in 1979, when agents learned that an informer, Michael Orlando, had committed robberies and a hijacking while infiltrating Mr. Masselli's operations.

Mr. Orlando, while also serving a Federal prison term for hijacking, came forward in 1982 and informed prosecutors that he had new information about mob crimes. Under a grant of immunity from the Bronx District Attorney's office, he admitted that in 1978 he shot to death an underworld rival of Mr. Masselli, Salvatore Frascone. Mr. Orlando, according to the prosecutors, contended that Mr. Masselli had ordered the murder, partly to resolve a dispute over lucrative construction contracts with Schiavone.

Mr. Bookin contended that Jopel was paid, at most, $5 million of the $12.4 million Schiavone had reported. At least $7.4 million earmarked for minority-group contractors, Mr. Bookin argued, had been retained by Schiavone through a ''bogus'' arrangement in which Jopel said it had paid Schiavone for leased equipment. Allegations have hounded Mr. Dono-van since his Cabinet nomination. In 1982, Mr. Silverman, in two reports, found ''insufficient credible evidence'' that Mr. Donovan had witnessed union payoffsor that he had links to organized crime.

During the trial Mr. Masselli said he was ill with bleeding ulcers and said he was undergoing other tests. He is free on $200,000 bail, awaiting trial in the murder of Mr. Frascone. The prosecutor in the homicide case is Mr. Bookin, and his principal witness is Mr. Orlando.

Other Schiavone executives who were acquitted were Richard C. Callaghan, senior vice president; Morris J. Levin, second vice president and corporate counsel, and Gennaro Liguori, second vice presidention. Albert J. Magrini, who retired as vice president, was also acquitted.