Zapata Corporation (NYSE: ZAP) is a holding company based in Rochester, New York and originating from an oil company started by a group including the former United States president George H. W. Bush. Various writers have alleged links between the company and the United States Central Intelligence Agency.
Early business history
The company traces its origins to Zapata Oil , founded in 1953 by future-U.S. President George H. W. Bush, along with his business partners John Overbey, Hugh Liedtke, Bill Liedtke, and Thomas J. Devine. Bush and Thomas J. Devine were oil-wildcatting associates. Their joint activities culminated in the establishment of Zapata Oil. The initial $1 million investment for Zapata was provided by the Liedtke brothers and their circle of investors, by Bush's father and maternal grandfather—Prescott Bush and George Herbert Walker, and his family circle of friends.
Hugh Liedtke was named president, Bush was vice president; Overbey soon left. In 1954, Zapata Off-Shore Company was formed as a subsidiary of Zapata Oil, with Bush as president of the new company. He raised some startup money from Eugene Meyer, publisher of the Washington Post , and his son-in-law, Phillip Graham.
Zapata Off-Shore accepted an offer from an inventor, R. G. LeTourneau, for the development of a mobile but secure drilling rig. Zapata advanced him $400,000, which was to be refundable if the completed rig did not function. If it did function, LeTourneau would get an additional $550,000 together with 38,000 shares of Zapata Off-Shore common stock.
Zapata Corporation split in 1959 into independent companies Zapata Petroleum, headed by the Liedtkes,and Zapata Off-Shore, headed by Bush funded with $800,000. Bush moved his offices and family that year from Midland, Texas to Houston. In 1963, Zapata Petroleum merged with South Penn Oil and other companies to become Pennzoil.
According to a George H. W. Bush-biographer Nicholas King, in the late-1950s and early-1960, Zapata Off-Shore concentrated its business in the Caribbean, the Gulf of Mexico, and the Central American coast. The U.S. government began to auction off mineral rights to these areas in 1954. In 1958, drilling contracts with the seven large U.S. oil producers included wells 40 miles (64 km) north of Isabela, Cuba, near the island Cay Sal. In July 1959, Cuba's Batista government was overthrown by Fidel Castro. Zapata also won a contract with Kuwait.
In 1962, Bush was joined in Zapata Off-Shore by a fellow Yale Skull and Bones member, Robert Gow. By 1963, Zapata Off-Shore had four operational oil-drilling — Scorpion (1956), Vinegaroon (1957), Sidewinder, and (in the Persian Gulf) Nola III.
In 1960, Jorge Diaz Serrano of Mexico was put in touch with Bush by Dresser. They created a new company, Perforaciones Marinas del Golfo, aka Permargo, in conjunction with Edwin Pauley of Pan American Petroleum, with whom Zapata had a previous offshore contract. The deal with Pemargo is not mentioned in Zapata's annual reports. A Bush spokesman in 1988 claimed the deal only lasted seven months, from March to September 1960. Zapata sold Nola I to Pemargo in 1964.
By 1964, Zapata Off-Shore had a number of subsidiaries, including: Seacat-Zapata Offshore Company (Persian Gulf), Zapata de Mexico, Zapata International Corporation, Zapata Mining Corporation, Zavala Oil Company, Zapata Overseas Corporation, and a 41% share of Amata Gas Corporation.
Bush ran for the United States Senate in 1964 and lost; he continued as president of Zapata Off-Shore until 1966, when he sold his interest to his business partner, Robert Gow, and ran for the U.S. House of Representatives.
In 1966, William Stamps Farish III, age 28, joined the board Zapata Board.
Zapata's filing records with the U.S.Securities and Exchange Commission are intact for the years 1955-1959, and again from 1967 onwards. However, records for the years 1960-1966 are missing. The commission's records officer stated that the records were inadvertently placed in a session file to be destroyed by a federal warehouse and that a total of 1,000 boxes were pulped in this procedure. The destruction of records occurred either in October 1983 (according to the records officer) or in 1981 shortly after Bush became Vice President of the United States (according to, Wison Carpenter, a record analyst with the commission).
Connections with the CIA
Various writers have suggested that Zapata Off-Shore, and Bush in particular, cooperated with the Central Intelligence Agency (CIA) beginning in the late 1950s.
FBI and CIA memos
Two Federal Bureau of Investigation (FBI) memoranda have been offered to show connections between the CIA and George H. W. Bush during his time at Zapata. The first memo names Zapata Off-Shore and was written by FBI Special Agent Graham Kitchel on 22 November 1963, regarding the John F. Kennedy assassination at 12:30 p.m. CST that day. It begins: "At 1:45 p.m. Mr. GEORGE H. W. BUSH, President of the Zapata Off-Shore Drilling Company, Houston, Texas, residence 5525 Briar, Houston, telephonically furnished the following information to writer. .. BUSH stated that he wanted to be kept confidential. .. was proceeding to Dallas, Texas, would remain in the Sheraton-Dallas Hotel."
A second FBI memorandum, written by J. Edgar Hoover, identifies "George Bush" with the CIA. It is dated 29 November 1963 and refers to a briefing given Bush on 23 November. The FBI Director describes a briefing about JFK's murder "orally furnished to Mr. George Bush of the Central Intelligence Agency. .. this Bureau" on "December 20, 1963.
When this second memorandum surfaced during the 1988 presidential campaign, Bush spokespersons (including Stephen Hart) said Hoover's memo referred to another George Bush who worked for the CIA. CIA spokeswoman Sharron Basso suggested it was referring to a George William Bush. However, others described this G. William Bush as a "lowly researcher" and "coast and beach analyst" who worked only with documents and photos at the CIA in Virginia from September 1963 to February 1964, with a low rank of GS-5. Moreover, this G. William Bush swore an affidavit in federal court denying that Hoover's memo referred to him:
"I have carefully reviewed the FBI memorandum to the Director, Bureau of Intelligence and Research, Department of State dated November 29, 1963 which mentions a Mr. George Bush of the Central Intelligence Agency. ... I do not recognize the contents of the memorandum as information furnished to me orally or otherwise during the time I was at the CIA. In fact, during my time at the CIA, I did not receive any oral communications from any government agency of any nature whatsoever. I did not receive any information relating to the Kennedy assassination during my time at the CIA from the FBI. Based on the above, it is my conclusion that I am not the Mr. George Bush of the Central Intelligence Agency referred to in the memorandum." ( United States District Court for the District of Columbia, Civil Action 88-2600 GHR, Archives and Research Center v. Central Intelligence Agency, Affidavit of George William Bush, September 21, 1988.)
Allegations by former CIA staff
US Army Brigadier General Russell Bowen wrote that there was a cover-up of Zapata's CIA connections:
Bush, in fact, did work directly with the anti-Castro Cuban groups in Miami before and after the Bay of Pigs invasion, using his company, Zapata Oil, as a corporate cover for his activities on behalf of the agency. Records at the University of Miami, where the operations were based for several years, show George Bush was present during this time.
Another writer quotes four former U.S. intelligence officials saying Bush was involved with the CIA prior to the Bay of Pigs:
Robert T. Crowley and William Corson of the CIA:
Bush was officially considered a CIA business asset, according to Crowley and Corson. "George's insecurities were clay to someone like Dulles", William Corson said. To recruit young George Bush, Robert Crowley explained, Dulles convinced him that "he could contribute to his country as well as get help from the CIA for his overseas business activities." was, according to Corson, "perfect at talent spotting and looking at potential recruits for the CIA. You have to remember, we had real fears of Soviet activity in Mexico in the 1950s. Bush was one of many businessmen that would be reimbursed for hiring someone the CIA was interested in, or simply carrying a message." --Chapter 2 page 14
John Sherwood of the CIA:
Bush was at first a tiny part of OPERATION MONGOOSE, the CIA's code name for their anti-Castro operations. According to the late John Sherwood, "Bush was like hundreds of other businessmen who provided the nuts-and-bolts assistance such operations require... What they mainly helped us with was to give us a place to park people that was discreet." --Chapter 2 page 16
An anonymous official connected to "Operation Mongoose":
George Bush would be given a list of names of Cuban oil workers we would want placed in jobs... The oil platforms he dealt i
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