CURRENT TIME MAGAZINE INVESTIGATION OF ROBERT R. MULLEN & COMPANY CONNECTION WITH WATERGATE INCIDENT (W/ATTACHED ROUTING AND RECORD SHEET)

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 00576289
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: March 9, 2023
• Document Release Date: August 14, 2020
• Case Number: F-2016-01299
• Publication Date: March 1, 1973

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....1 March 1973
MEMORANDUM FOR: Deputy Director .for Plan.i.
,
SUBJECT. :. Cur:ent Time Magazine Investigation of
. .. Robert R. Mullen & Company Connection
, . with the Watergate Incident � �
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� l'. Mr. Robert R. Mullen, president of Robert R. Mullen-
�A. Company, telephoned CCS on the morning of 23 February to-
advise us that Sandy Smith, a reporter from Time Magazine,
was in the Mullen office late on.27 February. Smith started
off by saying that "a source in the Justice Department" had
.informed him that the company "is a front for CIA." Mr.
.Mullen denied the allegation stoutly, said the company clients
are all legitimate .and .offered to let Smith inspect the
company books. . Mr. Mullen.said that his intuition was that :
Smith was on a fishing.expedition and really had nothing to
substantiate his suspicions. . .
� �
. . , . .
2. Smith had many questions concerning Howard Huntll
such as how he secured Mulret employment and his salary.
Mullen told him the company paid him a salary initially and
later on a consultant. basis when Hunt began to work for The.
Committee to Re-elect The President. Smith wondered about
Hunt's -source of income as there is no record in above.. .
Committees records of payments to Hunt. 'Mullen informed
Smith that One �SourCe'of.Hulit's income.was a government
penSion'which., according to Hunt, .was sizeable.
3. Mullen told Smith that Bob Bennett, partner of �Mr.
Mullen who was on a business trip to California, really knew
most'about.Hunt's,later period_of Mullen employment, Mullen
Could not Show Smith records concerning Hunt as they. are in
possession of the U. S. :attorney:
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� 4. Bob Mullen again telephoned CCS at 1650 hours on
. 2S February 1973 as a follow up to his 'morning call, as
reported above. �
5. Sandy. Smith, the Time: reporter, was in again in the
late afternoon and told Mr77Ellen that he. had iust seen,
through az FBI contact, a paper allegedly personally delivered
� by a high official pf CIA to Mr. Pat Cray, Acting Director of
the FBI, during the height of the Watergate flap and investi-
� .gation of Howard Hunt last summer.
_ .
� 6. It was evident that Smith at least knew of the
existence of such a document ,.but Mr. Mullen could only guess
that Smith had not seen it long enough to digest it, or it
said so little that Smith is trying to develop more information.
� 7; Mr. Mullen continued to deny being associated with
the Agency in any way except for the Cuban Freedom Committee,
which connection had been admitted by Bob Bennett in June to
the news media and U. S. attorney. Smith told Mullen, whom
he has known for :years because of some association in New York,
that he is now in his "corner," but would be most unhappy if .
he ascertains that Mullen is not .leveling with him. Mullen
does not trust Smith and is certain Smith will write up what-
ever he develops, Presumably Time would publish the article.
� 8. Mullen would like to know what exactly we gave the
FBI so that he can tell Smith what he already seemingly knows
from our memorandum to the FBI, or az least know how to best
cope with Smith. Mr. Mullen requested that our reply be given
� him .during the evening of 28 February.
9.Attached is ,a -copy of the 21 June 1972 Memorandum- for
the Acting Director of the FBI from the Office of Security
� concerning Robert R. Mullen Company, Possession of the contents
of this meaorandum by Mr. Smith could be very damaging to the
Agency and the company. The �last sentence of Para. 4 states
"Mr. Hunt was aware of the " under
Robert R. Xulle-n and Company." Paragraph 5 relates tnat
Mullen company employees have been witting of the company's ties
� with the Agency. Paragraph 7 states "In view of the extreme
� sensitivity of this information concerning the current use of
Robert R. �lullen Company, it is requested that this report be -
tightly controlled and not be- -diss-eminated outside .your BUT 41,1
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10. Mr. C/CCS and the CCS case officer for
�
the Mullen Company, Mr. discussed the
above with Mr. William E. Colby and Mr. � at
approximately 1800 hours on 28 February.. It was agreed that
Mr. Colby would recommend to the DCI, Mr. Schlesinger,
Messrs. Mullen and Bennett bllowed to read the 21 June'' �
1972 memorandum to the FBI and that they be asked io continue
to deny any allegation of association with the Agency, and
state in effect that ihere was no.relationship, and if then.,
were, it, of course, would not be admitted'. Mr. Schlesinger . . .
.did endorse the proposed course of action..
� 11. Messrs.
.0
J.
CCS met with Messrs.
at. 0840 hours on 1 March to inform them of developments -which
endanger , who is
I
. It was decided that Mr would
further discuss with Mr. Mullen and Mr. Bennett, who had
returned to his office, the Smith visits, allow them to read
the 21 June memorandum to the T3I and propose the immediate
return of ' zo the United States and termination of
.the . arrangenentl.thelast with the company as the
cover was terminated in August 1972. '
�
12. Mr. and Mr. Mullen met near the Watergate
.and proceeded to Mr. Mullen's apartment in The Watergate
through a rear entrance to Tha l':atergate. Mr. Bennett joined
them shortly and both' read the memorandum,. It developed that
Mr. Bennett had been present during the secend meeting with
Mr. Smith. Messrs. Bennett and, Mullen both were of the opinion
that Smith had not seen the memorandum. They suggested that he
had only heard of its existence or had seen an FBI report which
summarized the memorandum and said only that the company had
provided cover for the Agency. They felt that if he had seen
the memorandum, he would not have re-visited them or would have
accused them on the rather specific information contained in .
the memorandum. They said they would continue to deny any
association with the Agency other than the all-Cady acknowledged
relationship _with :the Cuban Freedom Committee. ,.
13. They related that they told Smith he was beating a
dead horse and that the Washington Star, .Washington Post and
Los'Anpeles Times had already investigated and conclaTET that
he frf1en Company was not involved in the Watergate affair or
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the allegation that the CIA had instigated the Watergate Affair.
It was an intriguing theory which. just died. Mr. Bennett said
that he recently spent four hours in Los Angeles being inter-
viewed by a Newsweek reporter and had convinced him that the
Mullen Company was not involved with the Watergate Affair. :.Mr.
Bennett rather proudly related-that he is responsible for the
article "Whispers about Colson"- in the 5 March issue of Nei,�sweek,
Mr. Bennett does not believe the company will be bothered much
more by the news media-Which is concluding that "the company is
clean and'has�gotten a bum rap while the real culprits are
'getting scot free." Mr. Bennett said also that he has been
feeding stories to Bob Woodward of the Washington Post with the
the understanding that there be no attribution to Bennett.
Woodwood is suitably grateful-for-the:fine stories_and_by-lines
which he gets and protects Bennett (and the Mullen Company).
Typical is the article "Hunt Tried to Recruit Agent to Probe
Senator Kenriedy's -Life" on page A16 'of the Saturday, February
10, 1973, Washington Post. Mr. Bennett mentioned the 12 February
1973 meeting among hirrs-FI-f, Mullen and when he stated his
opinion that the Ervin Committee investigating the Watergate
incident would not involve the company. He said that, if �
-necessary0.he.could have his father, Senator Bennett of Utah,
intercede with Senator Ervin. His conclusion then was that he
could handle the Ervin Committee if the Agency can handle �
Howard. Hunt. �
� -
14. .Mr. Bennett reported that he is well acquainted wit� h
.a Charlotte, N. C. attorney named McConnell to whom Senator
Ervin offered the position of Chief. Investigator of the Con-
gressional Committee investigating the Watergate incident, Mr.
McConnell, according to Bennett, declined the offer because he
ds a millionaire in his own right and doesn't need to put up
with all the grief 'associated with such a position, Mr. Bennett
said he.,asked McConnell to inform Senator Ervin that Mullen,
Bennett and the company are 100% clean of any involvement in
.the Watergate. Bennett is certain that Senator Ervin has no
desire for revelation of legitimate arrangements or to harm the
Agency and would avoid questions concerning our overseas cover
placements. Mr. McConnell subsequently told Bennett that he and
Senator Ervin were the only passengers on a private plane
recently and he discussed Bennett, et al, as requested by
Bennett. Mr, McConnell believes Senator Ervin accepted his
comments and will not attempt to.furthLr.involve the Mullen
Company people. �.Bennett believes he and his Agency affiliations
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will' not be raised again. He has the Ervin Committee shut off�
and feels the Agency has the responsibility to persuade Howard
Hunt to. avoid revealing what he knows of tha history of cover
arrangements with the company. Bennett and Mullen further
suggested that the Agency "plug the leak" in the FBI and/or
Department of Justice,.
' . . � � '
15. At this time the Ageey proposal to bring -
back PCS prior to 10 March with the legend that has
become disenchanted with the company, does not like the change
in ownership :from Mullen to Bennett, and has several job pro-'
posals he wishes to pursue was then set forth. They said that
on the contrary Bennett and get along very well and
is deeply involved in a Bennett project described as
the-ART FUND which_purchases_and_sells paintings and works of
art. Bennett said that and his wife persuaded him
to permit them to invest personal _funds in the project and that
is devoting considerable time to it. It would do
Bennett and the company serious financial damage if
were not permitted to continue. It is especially important
that he be at' the Art Show Denmark from 1 My to 15 June
1973.
�
� '
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16. � They proposed iat-they request to return
next week for consultation. The -company has lost the
account to which . devoted some time, and new
accounts are being acquired.. could be kept away �
from the L. C. area by immediately assigning him to prepare
the SUMMA Summit Conference in late April in Las Vegas. Sumiaa
consists of the top executives of the Howard Hughes companies
and is the successor in the Hughes empire to the Hughes Tool
Company, which was sold, . with his extensive overseas
experience, might also be a speaker. The Summa Conference will
be a "dry run" for similar conferences which the Mullen Company
is planning -to do in representative West Coast cities to
acquaint top' West Coast executives with matters of interest such
as pending legislation, overseas competition and.the like.
Bennett believes that if May 1 passes without any serious
compromise, then nothing will happen. could then
handle the Art Show in Denmark from 1)tO 15 June and 'then
to , or if'We lifefer-to yhere the company
has business interests sufficient to support . , Mr.
Mullen also recalled our proposal of two years ago for
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I.:alien and Bennett took the position that while it was easy
to ascribe the opening and closing of the office
to an experiment, it�would be difficult to.explain closing
in Europe where presence as a vice president "has
been trumpeted" among their clients, business prospects and
.7.n their literature. It would hurt badly and cost lots of
money to end this one. . -..... ��_ __L .
- � _ .
17. ! broqched the possibility of the company
continuing as a legitimate employee if the Agency
should be unable to locate an appropriate assignment for him,
� Mullen said that ! does not possess qualifications
such as the ability to write, which are-requisite in the public
. relations field, but is an excellent businessman.
' asked. .whether might assist in servicing the Hughes
account. Bennett responded that the Hughes account cannot
stand further expenses and some new clients would need to be
� obtained to support the legitimate employment of
The proposal was not rejected, but it was evident that the
company prefers the current arrangement which is�supported
almost entirely by the Agency. �Mullen and Bennett both like
and admire and might employ him if employ-
cent with the'Agency terminates, it was learned-that
. discussed with Mullen the possibility of resigning .
from the Agency to accept legitimate Mullen Company employment
if the company.needs so warranted. .
. 1C. � Concerning the employment of Howard Hunt in May 1970,
� Bennett said smugly that he wasn't responsible and Mullen
. wishes now that he had not hired him. He recalled that as head
� of the Marshall Plan some. 25 years ago, he became acquainted
� with Hunt. . Retirement
Division, Office of Personnel, approached Mullen concerning the
�qualifications needed by Hunt for public relations work and
.possible. leads for employment for Hunt who was retiring from
. .the Agency. *Mullen stated that "twisted my arm pretty
hard" and he hired Hunt. Mullen believed that DCI, Helms, .
wished him to employ Hunt, especially after receipt of a
splendid letter of recommendation of Hunt from Mr. Helms who.
Iz'te'f personally expressed his appreciation to Mr. Mullen 'for
hiring Hunt.. Mr. Mullen said he honestly believed, as a.result
of the pressure exerted by that the Agency wished him
to resolve'problems. attendant to Hunt's retirement-by hiring
Hunts . .� � � . ..�
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19. The meeting concluded with Bennett stating that if.
' cover employment with Mullen is terminated before
the mid-June ending of the Art Show in Denmark, it. will hurt
Bennett badly and cost him lots of money. Both then commented_
that they were "not letting Agency down. Don't_ you let'us
downs"- �
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pproved for Release: 2020/08/14 C00576289
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MENIORANDUM FOR: The .1..ctlialg AL:actor
. � . �� � Federal Bureaa of Invezt:aation
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1. : Reference lc. made to tc verbal I.-cc-Inc:3i of 20 3Ln:a 1972
. for zlny available information concerning the Robort R. Mullen
. �
; Company and Interprogress,
ATTENTION ." . Mr. Arnold L. Parham
-SIM3ECT � .t.'� Robert R. Mullen Company
.0 �
�
� 2. The utilization of Robe:-.-t R. Mullen and Company dates �
back to June 1963, and grew out of tbe. recommendation of a long
time cooperative CIA asset. Mr. Mullen has provided certain.
� sensitive 'cover support ov.-arseas for Agency employees,
'� �
3, In addition, Mr. 1iic war, instrut-nental in the forma.tion
of the Cuban Freedom Committee. Mr. Mullen Manngc...d. to keep.a
low profile, and aVolded public identification with it,. except.that his
-company prepared some brochures for the committee. Mr. Mullen
� was also utilized by the Agency because of ha affiliation with another
�
prt.w..-te
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�
4. As. of 1 -May 1970, Mr. Everette Howard Hunt, vho had
just retired from the Central Ir.telligence A.gency, became a
. legitimate. e.--.1.ployee of..7.,�11.-. Mullen.; in July 1971, Mr. Hunt
�informed:this.Aaency tEaL he.had'been �assigned to the 'President's*
� White House Staff but continued to devote .t...%rt of his tirnele the
Robert R. Mullen Company. Mr. Hunt was aware of
under Robert R. Mullen and Company.
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-4-57121.1.'r."�7'-.7.v77
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