Quoted from the source:

The 1958 annual report notes that, with no major discoveries made, 1958 had been "a difficult year." It was, of course, the year of the brutal Eisenhower recession. SCORPION, VINEGAROON, and NOLA I, the offshore company's three drilling rigs, could not be kept fully occupied in the Gulf of Mexico during the whole year, and so Zapata Offshore had lost $524,441, more than Zapata Petroleum's own loss of $427,752 for that year. The Liedtke viewpoint was reflected in the notation that "disposing of the offshore business had been considered." The great tycoon Bush conceded in the Zapata Offshore annual report for 1958: "We erroneously predicted that most major [oil] companies would have active drilling programs for 1958. These drilling programs simply did not materialize...." In 1990, Bush denied for months that there was a recession, and through 1991 claimed that the recession had ended, when it had, in fact, long since turned into a depression. His current blindness about economic conjunctures would appear to be nothing new.

By 1959, there were reports of increasing personal tensions between the domineering and abrasive J. Hugh Liedtke, on the one hand, and Bush's Uncle Herbie Walker on the other. Liedtke was obsessed with his plan for creating a new major oil company, the boundless ambition that would propel him down a path littered with asset-stripped corporations into the devastating Pennzoil-Getty-Texaco wars of a quarter-century later. During the course of this year, the two groups of investors arrived at a separation that was billed as "amicable," and which in any case never interrupted the close cooperation among Bush and the Liedtke brothers. The solution was that the ever-present Uncle Herbie would buy out the Liedtke-Tulsa 40 percent stake in Zapata Offshore, while the Liedtke backers would buy out the Bush-Walker interest in Zapata Petroleum.

For this to be accomplished, George Bush would require yet another large infusion of capital. Uncle Herbie now raised yet another tranche for George, this time over $800,000. The money allegedly came from Bush-Walker friends and relatives. [18] Even if the faithful efforts of Uncle Herbie are taken into account, it is still puzzling to see a series of large infusions of cash into a poorly managed small company that had posted a series of substantial losses and whose future prospects were anything but rosy. At this point it is therefore legitimate to pose the question: Was Zapata Offshore an intelligence community front at its foundation in 1954, or did it become one in 1959, or perhaps at some later point? This question cannot be answered with finality, but some relevant evidence will be discussed in the following chapter.

George Bush was now the president of his own company, the undisputed boss of Zapata Offshore. Although the company was falling behind the rest of the offshore drilling industry, Bush made a desultory attempt at expansion through diversification, investing in a plastics machinery company in New Jersey, a Texas pipe lining company, and a gas transmission company; none of these investments proved to be remunerative.

Quoted from the source [NOTE: Absolutely no date for this; needs one]:

"JM/WAVE ... proliferated across [Florida] in preparation for the Bay of Pigs invasion. A subculture of fronts, proprietaries, suppliers, transfer agents, conduits, dummy corporations, blind drops, detective agencies, law firms, electronic firms, shopping centers, airlines, radio stations, the mob and the church and the banks: a false and secret nervous system twitching to stimuli supplied by the cortex in Clandestine Services in Langley. After defeat on the beach in Cuba, JM/WAVE became a continuing and extended Miami Station, CIA's largest in the continental United States. A large sign in front of the ... building complex reads: U.S. GOVERNMENT REGULATIONS PROHIBIT DISCUSSION OF THIS ORGANIZATION OR FACILITY."

-- Donald Freed, "Death in Washington" (Westport, Connecticut, 1980), p. 141.

...1959 was the year that Bush started operating out of his Zapata Offshore headquarters in Houston; it was also the year that Fidel Castro seized power in Cuba. Officially, as we have seen, George was now a businessman whose work took him at times to Louisiana, where Zapata had offshore drilling operations. George must have been a frequent visitor to New Orleans. Because of his family's estate on Jupiter Island, he would also have been a frequent visitor to the Hobe Sound area. And then, there were Zapata Offshore drilling operations in the Florida strait.

The Jupiter Island connection and father Prescott's Brown Brothers Harriman/Skull and Bones networks are doubtless the key. Jupiter Island meant Averell Harriman, Robert Lovett, C. Douglas Dillon and other Anglophile financiers who had directed the U.S. intelligence community long before there had been a CIA at all. And, in the backyard of the Jupiter Island Olympians, and under their direction, a powerful covert operations base was now being assembled, in which George Bush would have been present at the creation as a matter of birthright.

...Operation Zapata

During 1959-60, Allen Dulles and the Eisenhower administration began to assemble in south Florida the infrastructure for covert action against Cuba. This was the JM/WAVE capability, later formally constituted as the CIA Miami station. JM/WAVE was an operational center for the Eisenhower regime's project of staging an invasion of Cuba using a secret army of anti-Castro Cuban exiles, organized, armed, trained, transported, and directed by the CIA. The Cubans, called Brigade 2506, were trained in secret camps in Guatemala, and they had air support from B-26 bombers based in Nicaragua. This invasion was crushed by Castro's defending forces in less than three days.

[NOTE: To establish what Parrott was doing for CIA when meetings of the Special Group started being weekly]

THOMAS A. PARROTT: [I]n 1957 [I] was assigned as the so-called Board Assistant to Allen Dulles for the Operations Coordinating Board. Each of the principals of the OCB had an assistant. ...This other Special Group thing was not very active during the first year or two and it really didn't get into the kind of operation that has since become [sic] until 1959, the beginning of 1959 [see 1 c. February c. 1959], when President Eisenhower directed the group to meet at least once a week. Before that it had met quite sporadically. There had not been much form to the meetings.

MR. SCHWARZ: What function did you play in connection with the Special Group?

THOMAS A. PARROTT: I was the Secretary.

MR. SCHWARZ: And for what period of time did you have that?

THOMAS A. PARROTT: From '57 until October of '63. [NOTE: Parrott seems to be lying about when he terminated in this capacity. See Parrott written documents and dates.] But as I say between '57, the middle of '58 and the beginning of '59 there was very little activity.

A secret report is produced: Biderman, Albert D., A Study for Development of Improved Interrogation Techniques : Study SR 177-D (U), Secret, final report of Contract AS 18 (600) 1797, Bureau of Social Science Research Inc., Washington, D. C., March 1959.
The referenced source describes the report: "Although this book (207 pages of text) is principally concerned with lessons derived from the interrogation of American POW's by Communist services and with the problem of resisting interrogation, it also deals with the interrogation of resistant subjects. It has the added advantage of incorporating the findings and views of a number of scholars and specialists in subjects closely related to interrogation. As the frequency of citation indicates, this book was one of the most useful works consulted; few KUBARK [code name for CIA--Ed.] interrogators would fail to profit from reading it. It also contains a descriminating but undescribed bibliography of 343 items."

Quoted from the source for structure of OSI WORLDWIDE locations as of this date:

OSI/AFOSI DISTRICT WORLDWIDE NUMBERING SYSTEM
Established March 1, 1959
Terminated September 30, 1992

Dist Location
1 Westover AFB, MA (Later Pease AFB, NH)
2 Mitchel AFB, NY (Later New York City and McGuire AFB, NJ)
3 Olmsted AFB, PA
4 Bolling AFB, DC (Later Suitland, MD and Andrews AFB, MD)
5 Wright Patterson AFB, OH
6 Robins AFB, GA
7 Patrick AFB, FL
8 Maxwell AFB, AL
9 Barksdale AFB, LA
10 Kelly AFB, TX
11 Tinker AFB, OK
12 Chanute AFB, IL
13 Offutt AFB, NE
14 Lowry AFB, CO
15 Great Falls AFB, MT
16 Hill AFB, UT
17 Kirtland AFB, NM
18 Cheli AFS, Maywood, CA
19 Fairfield-Suison AFB, CA (Travis AFB)
20 McChord AFB, WA
21 Langley AFB, VA
22 Griffiss AFB, NY
23 Carswell AFB, TX
24 Chicago, IL
25 Dearborn, MI
26 Hickam AFB, HI
27 Ramey AFB, PR
28 Goose AB, Labrador
29 Thule AB, Greenland
30 Howard AFB, PN
41 Anderson AFB, Guam
42 Clark AB, RP
43 Kadena AB, Okinawa
44 Hickam AFB, HI
45 Seoul, South Korea
46 Yokota AB, Japan
47 Itazuke AB, Japan
48 Misawa AB, Japan
49 Taipei AS, Taiwan
50 Tan Son Nhut AS, SVN
51 Bangkok, Thailand
61 Berlin, Germany
62 South Ruislip, England
63 Chateauroux, France (Later Paris, France)
64 Rabat, Morocco
65 Florence, Italy (Later Rome, Italy)
66 Wheelus AB, Libya
67 Dahran, Saudi Arabia
68 Madrid, Spain (Later Torrejon AB, SP)
69 Ankara AS, Turkey (aka: TUSLOG Det 26)
70 Rhein/Main AB, Germany (Later Wiesbaden, GE)
71 Athenai Airport, Greece
72 Riyahd, Saudi Arabia
80 Eileson AFB, Alaska
81 Elmendorf AFB, Alaska

A lecture is delivered by Daniel Ellsberg at the Lowell Institute: "The Theory and Practice of Blackmail."

In an introduction to a July 1968 typed manuscript of the paper, Ellsberg says:

"In March, 1959, while a member of the Society of Fellows, Harvard, I delivered a series of public lectures in Boston, under the auspices of the lowell Institute; these lectures were subsequently broadcast over WGBH, an educational FM station. Overall subject of the series was, 'The Art of Coercion: A Study of Threats in Economic Conflict and War.' The following essay was the opening lecture. I have reprinted this lecture as it was delivered on March 10, 1959, almost ten years ago. It was before I cnme to RAND... ."

RAND's blurb on this paper says:

"A reprint of a lecture on the logic and rhetoric of threats and ultimatums -- the language of diplomacy -- delivered by the author on March 10, 1959. Whether it is called blackmail or deterrence, the art of influencing another's choice among alternatives by the use of threats is coercion. To provide a framework for representing and comparing alternatives, a game is developed, employing a payoff matrix, in which the victim has two choices, resist or comply, and the threatener has two, accept or punish. As a rule, a threat has a certain built-in implausibility, that of being costly -- or irrational -- to carry out. The threatener's problem is to make his threat sufficiently plausible to the victim. He may do so by means of four main techniques: (1) by binding himself irrevocably; (2) by putting up forfeits; (3) by making the victim unsure of what would be rational; and (4) by appearing to be irrational -- or, as with Hitler, by [being] irrational. In the last analysis, however, since the estimates of payoffs -- or risks -- are subjective variables, the answer to successful blackmail is not within the scope of logic: it is an art."

[NOTE: Although this is Ellsberg's work, a manuscript on the RAND web site is copyrighted by the RAND corporation, and bears a date of "July 1968." The current RAND web site says: "This product is part of the RAND paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review. Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page. The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors."]

SECRETARIAL TO THE EXECUTIVE DIRECTOR
H.A.S.I. LONDON

No. 152

March 16, 1959

H.G.C. Psychotic Applicants

The acceptance of psychotic persons for processing in the HGC is
forbidden by Board Minutes.

Psychosis is a loose term. Probably it has no real definition and
better meaning is needed here.

Therefore, we will define here persons we cannot accept for processing
and do forbid processing to them in the HGC.

1) Persons so anti-social in conduct as to constitute a serious menace
to persons and property.

2) Persons who are unable to physically care for themselves for mental
reasons and need escorts and nurses.

3) Persons requiring special housing and who are incompetent to move
about in the streets without the mental (not physical) guidance of an
escort.

4) Persons with long homosexual histories who cannot work.

5) Persons with communist or other criminal backgrounds.

I do not believe either "institutional histories" or electric shock
treatment backgrounds wholly qualify the term "psychosis", but these
should indicate some wariness.

The Hubbard Guidance Centre Division of the HASI may some day have
properly staffed and equipped hospitals. Until that day any attempt to
handle "psychotics" should be foresworn as these in a severe sense
need hospitalization.

L. RON HUBBARD
EXECUTIVE DIRECTOR
HASI LONDON
by [Signature]

LRH:NP
Dist. All staffed
Bul.Board.

"While in the church, DeWolf lived well, associating with such notables as Thomas Driberg, then head of the British Labor Party and later a Peer. Driberg, now deceased, has been identified by English journalist Chapman Pincher as a double agent for MI5 and the KGB. DeWolf said the KGB connection was true." [NOTE: Date is only guessed at very broadly, because the only clue in the UPI story this comes from is "While in the church." DeWolf, aka Nibs, aka L. Ron Hubbard Jr., was "in the church" from 1953 through 1959. This entry will be put in the vicinity of several dates when it can be confirmed, from other sources, that DeWolf was in England.]

Quoted from the source concerning Admiral Harry Felt (who by this time may already have Daniel Ellsberg as a consultant):

Commander in Chief, Pacific (CINCPAC) [Admiral Harry Felt] extends the advisory and training operation in Vietnam as follows:

* Provide MAAG [Military Assistance Advisory Group] advisors down to and including Infantry Regimental level and Artillery, Armored and separate Marine Battalion level.

* Place the advisors in the field with the HQ of the units being advised in order to furnish advice on the preparation of daily plans, monitor the day-to-day conduct of operations and render on the spot advice based on the situation as it exists at the time. This will include tactical advice as well as that provided on logistical matters, including medical support problems, the evacuation of the wounded, transportation problems, road and rail construction, bridging supply procedures, maintenance of equipment etc.

* Evaluate Vietnamese requests for additional equipment, road building materials, heavy engineering equipment etc. in the light of the direct observations of the on-the-spot advisors as well as upon other information available.

* Evaluate the level of cooperation and coordination among Vietnamese Army, Navy and Air Force elements and take necessary corrective action with Vietnamese officials in those instances where deficiencies are reported by on-the-spot advisors.

* The activities of MAAG Advisors must be limited to advisory functions and under no circumstances shall they participate directly in combat operations nor will they accompany units on anti-guerrilla operations in areas immediately adjacent to national boundaries.