Before I defected to America from Romania, leaving my post as chief of Romanian intelligence, I was responsible for giving Arafat about $200,000 in laundered cash every month throughout the 1970s. I also sent two cargo planes to Beirut a week, stuffed with uniforms and supplies. Other Soviet bloc states did much the same. Terrorism has been extremely profitable for Arafat. According to Forbes magazine, he is today the sixth wealthiest among the world's "kings, queens & despots," with more than $300 million stashed in Swiss bank accounts.
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"I invented the hijackings [of passenger planes]," Arafat bragged when I first met him at his PLO headquarters in Beirut in the early 1970s. He gestured toward the little red flags pinned on a wall map of the world that labeled Israel as "Palestine." "There they all are!" he told me, proudly. The dubious honor of inventing hijacking actually goes to the KGB, which first hijacked a U.S. passenger plane in 1960 to Communist Cuba. Arafat's innovation was the suicide bomber, a terror concept that would come to full flower on 9/11.
In 1972, the Kremlin put Arafat and his terror networks high on all Soviet bloc intelligence services' priority list, including mine. Bucharest's role was to ingratiate him with the White House. We were the bloc experts at this. We'd already had great success in making Washington -- as well as most of the fashionable left-leaning American academics of the day -- believe that Nicolae Ceausescu was, like Josip Broz Tito, an "independent" Communist with a "moderate" streak.
KGB chairman Yuri Andropov in February 1972 laughed to me about the Yankee gullibility for celebrities. We'd outgrown Stalinist cults of personality, but those crazy Americans were still naïve enough to revere national leaders. We would make Arafat into just such a figurehead and gradually move the PLO closer to power and statehood. Andropov thought that Vietnam-weary Americans would snatch at the smallest sign of conciliation to promote Arafat from terrorist to statesman in their hopes for peace.
Right after that meeting, I was given the KGB's "personal file" on Arafat. He was an Egyptian bourgeois turned into a devoted Marxist by KGB foreign intelligence. The KGB had trained him at its Balashikha special-ops school east of Moscow and in the mid-1960s decided to groom him as the future PLO leader. First, the KGB destroyed the official records of Arafat's birth in Cairo, replacing them with fictitious documents saying that he had been born in Jerusalem and was therefore a Palestinian by birth.
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