--- born: 1942-05-01 category: Iran-Contra location: Santa Cruz, Chile summary: Cardoen later resigned and became a private contractor, securing a deal to supply all blasting equipment to the Chilean Mining Corporation. tags: - Person - IranContra - Israel --- [Carlos Cardoen](/people/carlos-cardoen/) is a Chilean businessman and arms producer, owner of Cardoen Industries. He comes from an upper-class Chilean family of Italian descent. After attending university in the [U.S.](/places/united-states/) and receiving a degree as a mining engineer, he returned to [Santiago](/places/santiago/), [Chile](/places/chile/), after [General Augusto Pinochet's](/people/augusto-pinochet/) 1973 coup d'état to work for the government-owned Chilean Mining Corporation. His job involved procuring explosives for mining, which became a lucrative business for him personally due to kickbacks.[^1] Cardoen later resigned and became a private contractor, securing a deal to supply all blasting equipment to the Chilean Mining Corporation. He then ventured into arms brokering, though initially without success. In 1979, he applied to SIBAT, the Foreign Defense Sales Office of the [Israeli](/places/israel/) Ministry of Defense, for a license to sell [Israeli](/places/israel/) arms in [South America](/places/south-america/). His request was denied due to his lack of experience and established political connections.[^1] After being rejected by [Israel](/places/israel/), Cardoen obtained a brokering license from the [ARMSCOR](/organizations/armscor/) (South Africa's government weapons manufacturer) with the help of the Chilean ambassador to [South Africa](/places/south-africa/). He then secured loans from Chilean banks and began operating as an arms producer and broker.[^1] By 1985, Cardoen was selling arms to [Iraq](/places/iraq/), with the help of [ARMSCOR](/organizations/armscor/) and support from individuals connected to the [CIA](/organizations/central-intelligence-agency/), such as [Alan Sanders](/people/alan-sanders/) of [ITICO](/organizations/itico/). He received blueprints for cluster bombs from Sanders and, despite a [United Nations](/organizations/united-nations/) arms embargo against [Chile](/places/chile/), produced these bombs with a covert [U.S.](/places/united-states/) license. [Israel](/places/israel/) was interested in acquiring these bombs.[^1] In 1985, [Ari Ben-Menashe](/people/ari-ben-menashe/) approached [Alan Sanders](/people/alan-sanders/) to purchase cluster bombs for [Israel](/places/israel/), and was informed that Cardoen would sell to anyone who paid him. A few weeks later, [Israel](/places/israel/) received cluster bombs from [Santiago](/places/santiago/) via diplomatic crate.[^1] [Robert Gates](/people/robert-gates/), then [CIA](/organizations/central-intelligence-agency/) deputy director for intelligence, was approached by [Nachum Admoni](/people/nachum-admoni/) ([Mossad](/organizations/mossad/) director) regarding [U.S.](/places/united-states/) support for Cardoen. Admoni expressed [Israeli](/places/israel/) concerns about the support for [Iraq](/places/iraq/), especially through [Chile](/places/chile/) and [South Africa](/places/south-africa/). By this time, Cardoen owned two chemical weapons plants in [Santiago](/places/santiago/), a cluster bomb factory in cooperation with [Chile](/places/chile/)'s military, and a third chemical weapons plant in [Paraguay](/places/paraguay/). He was also building a chemical weapons plant outside [Baghdad](/places/baghdad/).[^1] Cardoen's [Santiago](/places/santiago/)-produced chemical weapons and those from [Paraguay](/places/paraguay/) used artillery cups from [West Germany](/places/west-germany/), procured by [Ihsan Barbouti](/people/ihsan-barbouti/). These materials were shipped to [Baghdad](/places/baghdad/) by Iraqi Airways cargo planes. Cardoen used [U.S.](/places/united-states/) banks, such as the [Valley National Bank of Arizona](/organizations/valley-national-bank-of-arizona/), to finance his sales and obtained raw materials for chemical manufacturing from a factory in Boca Raton, [Florida](/places/florida/). The [Gamma Corporation](/organizations/gamma-corporation/), a [CIA](/organizations/central-intelligence-agency/) cut-out, sold fuses for the cluster bombs to Cardoen.[^1] In late 1986, [Israel](/places/israel/) expressed concern about arms shipments to [Iraq](/places/iraq/), with [Yitzhak Shamir](/people/yitzhak-shamir/) threatening to go to [Congress](/places/united-states/). [Robert Gates](/people/robert-gates/) called a meeting in [Santiago](/places/santiago/) to calm the [Israelis](/places/israel/). Attendees included Cardoen, Gates, Senator [John Tower](/people/john-tower/), [Gen. Pieter Van Der Westhuizen](/people/pieter-van-der-westhuizen/) (South African Military Intelligence), and [Gen. Rodolfo Stange](/people/rodolfo-stange/) (Chilean Carabineros). At this meeting, [U.S.](/places/united-states/) officials made it clear they intended to maintain the arms channel to [Iraq](/places/iraq/) to bring [Iraq](/places/iraq/) into their sphere of influence, assuring [Israel](/places/israel/) it would not be harmed. Cardoen continued to supply chemical weapons and cluster bombs to [Iraq](/places/iraq/) despite [Israeli](/places/israel/) concerns.[^1] In September 1988, [Ari Ben-Menashe](/people/ari-ben-menashe/) was sent to [Chile](/places/chile/) to confront Cardoen. Ben-Menashe offered Cardoen a deal: [Israel](/places/israel/) would license him to produce Uzis, Galil assault rifles, artillery shells, and mortars, and exclusively sell these materials throughout [South America](/places/south-america/), in exchange for stopping his chemical trade with [Iraq](/places/iraq/). Cardoen was given two weeks to consider the offer. During this visit, Cardoen introduced Ben-Menashe to [Mark Thatcher](/people/mark-thatcher/), implying Thatcher was involved in his business.[^1] Cardoen was furious about [Ben-Menashe's](/people/ari-ben-menashe/) visit to his plant in [Paraguay](/places/paraguay/) and his attempts to stop the trade. He claimed to have the backing of the [Americans](/places/united-states/) and the Chilean government, and threatened [Israel](/places/israel/) if they interfered. He also revealed that [Gates](/people/robert-gates/)'s office provided technology directly from the [CIA](/organizations/central-intelligence-agency/), and that [Ihsan Barbouti](/people/ihsan-barbouti/) was a key link in his operations. He mentioned [Alan Bond](/people/alan-bond/) and British investors as backers.[^1] In February 1989, [Cardoen](/people/carlos-cardoen/)'s plant in [Paraguay](/places/paraguay/) was not closed down, thanks to [President Andres Rodriguez](/people/andres-rodriguez/), who continued to rule the country with [U.S.](/places/united-states/) blessing. Charges were filed against Cardoen in [Miami](/places/miami/) in April 1992 by the [U.S.](/places/united-states/) Customs Service following newspaper exposés of his involvement with [Iraq](/places/iraq/).[^1] [^1]: Ben-Menashe, Ari. *Profits of War: Inside the Secret U.S.-Israeli Arms Network*. TrineDay, 1992.