DRAFT Memo on dential and Legally Pri leged To File From Date September_ 2000 Subject Colombia Security are 57 NC inieet in sometimes the relevant Banadex managers and review the historyr of Banadex's payments to LaTagua del Darion the Conviv'ir organization in Uraha region of Antioquia and to learn how Banadex started making payments to the Autodefensas de Colombia operation in Magdalena Banadex Turbo Division is in Uraha and its Santa Marta Division 1s in Magdalena Antioquia and Magdalena are Departments similar to a state or a province and Medellin' 1a the capital of Antioquia wxc Becurity IthB Mb bne ofBanadex in-house attorneys 1131151101 I and outside counsel to Bastienm mamnbed how Banadex was rst contacted by supporters of a Canvivir organization for the Uraba region ofAntioquiat 05b - Willamette Autodefensas payments since his 11 -- nothing speci etoadd butasB 1 1 Itb bum 'I urbo and Santa Marta he is quite familiar with the security issues raised by Autodefensas' activities - MedellinJi 5H5 Mimi Powder currmt not involved 1n the ants discussions regarding La Tagua or Autodefelisaa - about the and believes Banadex must make them - uld not want to travel to Banadex farms 111 Santa Marta or Uraha if - - making the payments The risk ol'renewed guerilla attacks and reprisals from Autod 551- 1 betoogrut That 1n Bogota witth of Seouritjlr untillibi WW b desoribed ho1v Cthe T Autodet'ensas operation in Magdalena rst informed Banadex that payments would he required and how Banadex made those payments while he Worked for Banadexf meetings and gave me the attached documents his memorandum summarizes what to La Ta IAnli ill 6 lib Niel Iandc told him that Autodefensas was supporting the establishment of a new Convivir organization for the Uraba region and would like to meet with Banadex management Autodefensas 15 a widely-brown illegal vigilante organization th bl Ithat Banadex had no choice but to attend the meeting Banadex was and still 15 a well-how member of the Medellin business community Reliusing to meet would antagonize the Colombia military local and state government of cials and Autodefensas I - Will W were met We bit-filo hutodefensas 5 367ch 6N6 Hoes not Jamaicans well-known rooertv destruction carried out in Uraba by various guerilla groups and he told W5 6 0 th Iinterest with the government military and business community in driving the guerillas out of Uraha It was well-known at the time that senior of cers of the Colombian military and the Governor of the Department of Antioquia were campai g for the establishment of a Convivir organization in Uraha bJ JITUJJII le SJ more forward to their support of Convivir lmade no explicit threats he sent an unspoken but clear message Autodefensas was already well establishedin Antioquia l bJ 6 landsupportedthe establishment ofaConvivir organization in Umba Antodefensas expected Banadex to support Couvivir and 1f Banadex did not Autodel'ensas would attaelr Banadex 3 people and propet tylb C nderstood the unspoken threatizilbl 3 ka 5J b Banadex would have to support Convivir Abdnt4or5 organizerandsupporter Jt inUrahaealledIaTaguadelDarien How didwemow how mmhtopay and wheretomd remoney Jth6 THC atmeearliermee nn ts hedrdn mtneedtoubnelg mew Au odefensassupponed Convivir and expected Banadex to make the payments and he knew what would happen if Banadex re ned Add history of payments and attempts to slow down and reduce the payments whenpossihie - W s mn- Magdalena Aboutl to 11 32am mega moor swoon approachedb haunt Autodefensas med operationi momma small town nearSmtaM Memoir H6 liblt bH THC llhe only people at the hotel were soldiers He said the leader had the coldest - a he had ever seen During a very short meeting the leader bluntly and no matter of foot - todefensas had payments to Autodefensas He did not threat-either did he indicate any willingness to discuss the issue The leader 5 unspoken but clear message was we are here In Santa Marta and we are strong eg all the soldiers at the hotel WI know who you are and you need to make sure Banadex pays when we ask I made Banndex wouldhave to make the payments to have Bansdex make payments to Inversiones Manglar S which has created to collect payments Who did we give the checks to _ 5 7 The collector did not say how much Banadex should pay but b N5 bu tc since was demanding the payments the amount would he the same as Banedex was paying to Commit Ill Turbom -ohecl_r on whether any cash 'payrnentsweremsde andifso Epoch time between this meeting and the rst payment Does chronology mono Ithoughtl saw a fins 1039 seems like a long time to wait to make rst Fagin Banadex paid WHEN - l' 000 000 pesos in 1999' 12 000 000 eons-in 1 2000 and 51 500 000pesos in June 2000 I form Form 1016 foreooh payment thel b 6 J 3 CBI-V1-003-000023 - 'Mhn The rst two payments were given to How The third payment was givm WEE hieh forwarded it to Autode iagdalena Future payments will also he made Lhrou anadex will manage the mount-end timing af ne-5e payments as they do the 6 ayments Despite than e 'ens the payments are expected to average I per month same facts f_ re efforts to delay and reduce payments 40113-000024                     National Security Archive    Suite 701  Gelman Library  The George Washington University    2130 H Street  NW  Washington  D C  20037    Phone  202 994‐7000  Fax  202 994‐7005  nsarchiv@gwu edu