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November 23, 1979
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STAT Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 No surrrise - this week's bignest subject , Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE APP' L AGE A6 __ ON P Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 LOS ANGELES TTIES U.S. Prairesis Hosh~ Soviet Broadcasts to Iran MOSCOW-The _-Carter Administration has protested both here and in Washington what it terms "inftarnmato- ry" Soviet radio broadcasts beamed into Iran about the siege. of the U.S. Embassy in Tehran by Moslem students, Western diplomatic sources said here Monday. " - 1 The broadcasts have painted the embattled embassy as "a center of corruption and. anti-Iranian conspiracies," termed the student takeover as "understandable and logi- cal" and denounced the United States for giving the de-: posed Shah of Iran medical sanctuary while he undergoes. cancer treatment in New York. .7 :. +< The Carter Administration was angered by the broad- casts and considered them "very inflammatory given the situation" in Tehran, the western sources said.; ? The Iranian students are holding more than 60 Ameri- cans hostage in the U.S. Embassy in Tehran, demanding that Shah Mohammed Reza Pahlavi be returned to face punishment for crimes against the Iranian people. Iran's Moslem leader, the Ayatollah Ruhollah Khomaini, has im- plicitly sanctioned the siege and has this far refused to ne- gotiate the release of the hostages unless the shah is re- turned The Soviet broadcasts came from two sources: Radio osco s arse an a e service arse is e basicTan- SuaRe in Iran) and an a oice of Iran." which Western m ence sources saw casts station roa in t)ota arse anAbout -10 million Azerbaijanis live in Iran, across the border from almost 4 million who live in the Soviet Union. According to Western monitors. Radio Moscow termed the takeover as "totally understandable and logical" be- cause the U.S. Embassy in Tehran is filled with what Ra- dio Moscow called "agents of the CIA" and "U.S. imperia- lists who have not eZasse their unpenausm against Iran." ? "The National Voice," according to those same monitor- ing reports, called the embassy "a center of corruption and anti-Iranian conspiracies" and harshly denounced the United States for allowing the shah-whom it called "the lxeLiutioner"--to get cancer treatment in New York The station also praised the "struggling and enthusiastic" Mos- lem students who took over the mission nine days agm The Carter Administration has asked the Kremlin to participate in a joint effort to intercede with Khomaini on behalf of the hostages by those governments with embas .sies in Tehran. Sources here said the Soviets have indicat- ed they are willing to do so. . The broadcasts, however, indicate that Moscow also hopes to gain political mileage out of the latest Iranian cri- sis. "They just can't resist taking advantage of a major de- terioration of U.S: Iranian relations," one Western diplo- mat commented. The Kremlin remains leery of Khomaini, who has lashed 'out at communism almost as often as he has at U.S. imperi- alism. Last week, Tehran abrogated sections of a 1921 So- viet-Iranian treaty giving Moscow the right to intervene militarily in Iran should any third nation try to use Iranian territory as a base for an attack on the Soviet Union. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 13 NOVEIMM 1979 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 THE KIPLINGER WASHINGTON LETTER 9 November 1979 Dear Client: Washington, Nov. 9, 1979. This situation in Iran is worse than the news reports indicate. It's the beginning of the end for Iran as an independent nation. And it's THE END of normal ties with us-that's for sure. What caused such a sudden rupture? Well, it wasn't the reason you've been hearing & reading-to force us to send the Shah back home. That's just a facade, a smoke screen. The real reason is as follows: Khc,meini's men wanted a clash with the whip up emotions and use the opportunity to take full power of gov't into their hands. Russia egged them on. It is supporting the demonstrators there. The "students" were led by Russian-trained organizers who are skillful at swaying mobs, taking advantage of confusion, using it to their ends. Khomeini went along with this.. .his anti-U.S. bias is still blazing. Next step: Russia will keep Iran upset...keep things in chaos. Using the pro-Soviet elements there to create more mischief... feeding the turbulence and exhausting any opposition that comes along. Then... get CONTROL... either directly or indirectly, since Iran is the gateway to the Persian Gulf oil, which is Russia's MAIN goal. One other important angle: When the i.ob invaded our embassy. they probably got their hands on secret U.S. intelligence equipment. Officials here know it was there at the time. They haven't yet learned how much the Red leaders of the mob got. It's highly sophisticated stuff that we ve been using to gather information about the Russian military. The embassy staff undoubtedly tried to destroy it, but time was short. Will Iran cut off its oil to the U.S.? That's far from certain, but even if it stops shipping here, we could still get oil elsewhere. From Saudi Arabia and other producing nations. Or the "spot market," where prices are MUCH higher. Then fuel prices would climb even faster. Barring a total disruption of Iran's oil... to ALL countries... There will be only minor supply problems this winter in the U.S. On gasoline, best to expect temporary scarcities-localized... perhaps gas lines here & there. Some brands less available than others. Of course, prices will climb. The gov't decontrol assures this. And producing nations have already indicated that another boost in price will be voted next month... probably hitting hardest during midwinter. Diesel and heating oil will be tight...prices up constantly. Natural gas, propane... supplies adequate, but more expensive. Coal, plentiful. Electricity, more than ample for normal uses. Low-sulfur residual oil, very tight... and very expensive. For the nation as a whole, the fuel supply doesn't look bad, but there's not much cushion between supply and demand. Allow for this. EXCERPT Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE APP; ABED ON PAGE-.._ THE PHILADELPHIA INQUIRER 14 November 1979 bran upsets takeover principles By Jim Hoagland WASHINGTON The siege of the U.S. Embassy in Tehran has reversed one of the few cardinal rules of deal- ing with mass kidnaping:, In Iran, time is on the side o1 the captors and works against those who are trying to free the hostages. Because each passing day adds to the domestic and international polit- ical advantages sought by the Ira- nian extremists who hold the embas- sy, their promise not to kill their hostages can probably be taken seri- ously. The status quo is ideal for the extremists' aims. That is true in part because their ultimate target appears to be not the hostages, nor even the return of former Shah Mohammed Reza Pahla-? vi. With Ayatollah Ruhollah Khomei- ni's connivance, the Tehran mob is doing its best to further damage the United States' standing in the Third World and. in a sense,.America'gna- Dual spirit. The televised image of truckloads if cheering Iranian workers and farmers -hooting past the captured embassy last weekend and screaming support for the captors will have made that point graphically for many American viewers. Ironically, many of those viewers switched to the Tehran. news film from Sunday night's broadcast of "Dog. Day Afternoon." the Al Pacino movie about 'a hostage-taking in a Brooklyn bank. In the film, the police followed standard tactics and stretched out negotiations as long as. possible to wear down the captors and prevent them from harming the ; hostages in panic. . President Carter and. Secretary of Analysis State Cyrus R.' Vance endorsed such tactics earlier this year when the U.S. ambassador to Afghanistan, Adolph Dubs, was held hostage by terrorists in Kabul. Ignoring pleas from Vance to continue ? negotiating with , the terrorists, Afghan police and their Soviet advisers rushed the terrorists, and Dubs was killed in the shooting. In Tehran, Carter confronts per- haps an even more painful and diffi. cult dilemma. The option of dragging the siege out lies with the captors. They. watch with evident glee as each 'day brings a rise in the tarnishing of American prestige in the world and in national frustration in America. . .-A U.S_ military strike into the cen- ter of crowded Tehran might stanch this hemorrhaging of pride. It would also probably result. in the death-of the estimated 62 Americans thought to be in the embassy. It is a tradeoff that Carter has not been willing to make. The course of the siege has made it -clear that this is terror with a differ. ence and that Carter has. to choose a .different approach. The goals and tactics of the Iranian militants are quite .different from those of the Black September group that kid- naped U.S. Ambassador Cleo Noel and his deputy, G. Curtis Moore, in Khar- toum, Sudan, in 1973. President Richard M. Nixon decid- ed immediately to-refuse to negotiate with the Arab terrbrists. On hearing this, the gunmen murdered Neol and Moore .and a Belgian diplomat they also had seized., In this siege; it is Carter who must race the clock. His- most immediate 'task appears to be trying to get slight. ly in front of rising public anger and keep it within bounds. He is taking steps that do- not endanger the cap. tives but that do establish American ability to. act His order Monday to cut off Iranian oil imports will have more symbolic than practical impact Carter has refused to deport , the i? 'former shah, who has. undergone 4 ? cancer surgery in New York. In addi- tion to dispatching special negotia- tors, the President has asked other' nations to intervene with the 79-year- old ayatollah, but with no success. The clock has been turned on its head in this can because the siege of - the embassy is a key weapon in a power struggle inside Iran. Islamic extremists used the takeover to sweep away the weak but Western oriented government of Prime Minis- ter Mehdi Bazargan_ Each. day of - demonstrations around the embassy consolidates the radicals' hold. on power. _~ Moreover, the militants have .pinned the Carter Administration once again to the legacy of a quarter century of supporting the shah, a legacy the State Department had , hoped to forget. Despite the terror tactics being nsed,the new demand for an Ameri- can admission of national guilt as part of the price for freeing the hos? tages will be popular in parts of the Third World that. feel the United States has, backed too many World 'tors" in too many places War IL Carter and his principal advisers came to office declaring a fresh start for American relations" with. the .Third World. They led- ed to eradi- i "sate the covert"operations and ictes a a o ten i am worm opinion agaum eIca- But the longer the siege continues, -the less chance there is?for Carter or 1 his successor to- find policy support. for a sympathetic toward the Third World: Calls for a ;.return to covert intervention- of the ; ,kind that brought Pahlavi back to power in 1953 - and even more bel- ligerent action to-re-establish Ameri- can prestige point to quite a differ- ent global future than the one Carte &eemed to envision on election day 'three years ago. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE AFPE4RED THE BOSTON GLOBE ON PAGE 14 November 1979 Spot sales. could ease , cutof f of Iranian oil By Bruce A. Mohl situation also was blamed for the surge in Globe Staff. - oil prices on the spot market and pressure For the sQc and time in less than sl year, within the Organization of Petroleum Ex- the United States will lose its access to porting Countries to press. for (and get) Iran's oil; this time by its own choosing. the higher prices that have played havoc It is *too early to predict what. impact with the world's economy. the cutoff will have this time, but the sit- While the.Iranian situation probably, uation? clearly is different from the one Played a role in all these events, how big a. role that existed on Dec. 27, 1978, when Iran, is uncertain. Central Intelligence' A enc . figures; the world's second largest oil exporter at. show a t e loss o Iranian of had little the time, ceased exporting oil altogether.- Unless Iran intends-to reduce its pro- impact on world crude oil production. Cit- duction, this time the 500,000 barrels of ing increased production other na- Iranian crude oil imported directly into lions, the CIA said that in the first three the United States daily-will probably be months of 1979 world crude oil production sold elsewhere rather, than be losientirely reached 60.4. million ? barrels a day and to the world oil market. then rose to 621 million barrels in April, a If so, that would mean there would be . net boost. in oil production. despite the "spare" oil somewhere that could be -Iranian cutoff. . bought by the United States, most likely' 7 The GAO reportwent a bit further ind on the more expensive spot market... ? tried to pinpoint what caused the gasoline "If Iran continues to sell crude to. the lines. Many of the problems could now re- rest of the world, it eases the pressure . emerge. elsewhere and eases the pressure on us," - . The GAO-laid much of the blame for Dan Lundberg, who publishes an authori-; the lines on the US government and thet tative gasoline newsletter, said. The oil companies. It specifically cited: , maximum Iranian hurt would be. if Iran ce Arbitrary oil company allocationi procedures. cut off.the whole world." That "maximum Iranian hurt" is what sure from the Energy Department, to buy happened earlier this year-when oil ex- oil on the more expensive, spot-market:. ports from Iran were totally cut off until _ An "unusual reduction" in domesti April 1979. The cutoff meant a loss to the oil production of 200,000 barrels per day, United States of 600,000 to 700,000. barrels _ Energy Department regulations. ou of crude oil per day, according to the Gen gasoline allocation and pricing. n& eral Accounting Office (GAO)-. The loss of high-quality Iran oil-. It was widely believed that the, sujnt' )h-- which caused the problem of finding Simi mer gas lines in the United States were a? lar.light, low-sulfur crude, the type of direct .result of the Iran cutoff. The Iran ' US refineries heavily rely on. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE AP" " ON PAGFsL THE WASHINGTON POST 15 November 1979 Jack Anderson A/T ? - _ .. N w Khomeini f i ~-SS .of may turn out to be of the country. For three Years, Iran She Carter to wale loo to stop th pb it { late. ' The The loss of Iran y whirled in intermittent bedlam. the most grievous blow to the United The miserliness of the oil comps Mossadegh was already shaking the s of nies, the growing appetites of. the, Peacock Throne. The alarmed shah` States since the Vietnam fie flowing turned to the United States for sup- d the crucial oil fields of e ' y, has opene Arabs for the oil mon - the Persian Gulf. to a possible take- under their feet, and the pen- port. F; wa teran ?d y a over by hostile forces. chant of the State. Department for The president rushed ve For two decades, the united States, taking the path of least: resistance eign policy strategist George Ball: to had built up Iran to be the protector opened the door to a fatal precedent. Iran. Ball concluded that the 'only_?9 .. _uat rn do about wav to nrevent-a total collapse otlZtte ci- UL ZU" Gulf. Then overnight,' the, govern-, - M~degh's upheaval was resoive~i government with the shah as meat fell into ant~American? hand& -? not by seeking a new and just modus viltan control, figurehead- Suddenly,` Ameriea's.' overseas oil = vivendi V1 th awakening nationalism - more than a arded this adviee-e Iran's aeon e i di r t g ng sr oy er. Car supply has become dangerously vul- but by first dest nerable. omy through a worldwide the urging?of his military chiefs;,he: om secretilocuments, here's the dustry boycott of its exports and ; .- ordered a small naval task forse,:lect lear carder Constellatiorn g Iossadegh i n Fr by the nuc then': by. depos story of the U.S. failure in Iran. It through a CIA coup... Into the Persians Gull:. Then goes back-to post-World War II: - The. CIA installed the.young shah abruptly canceled the order. er. t d .. _ larl;U orf f Mius-the president In 1950 Mahammed" Mossadegh, on the Peacock Throne andy assume er anies to rt. `" I I vice or sup~pnds of age 70, . the - eccentric leader of a ; ted . the .oil - comp S s itarion- of Iran: But the som t Na- i l i o an their exp h splinter . party in the Iran m _ " he said blaadly. f Mossadegh- was not c ng : 'to inflames t I o 1 o - o ran, s gh people of tional Assembly,, began the nation with his demands for na pletely exorcised. His ringing p the pimple went?on a rampaB 4 tionalizing oil. eats, could not Qe htremameddasha trampled. down the shah's SAV,erti. To Western eyes, _Iv` , growing undercurrent, buooung-be- .. . - - - They turned for leadership tv*ylp-- R holi u .----- -nosed -- factors wlucn, given ` file people. tollau id Moslem who embodied- i o embo led i os lem g c Iranians' superior esthetics M such . --- :. e - ig Tb,sr.aandercurrent went unde cleat r Mnc- if eg in a ge, po LUC" slams. Three years of incredible Carted used the tremendous lever- w n+~ l in a lie- urita star, grisly murders, baroque impos age of -the-United States, meanwhile, - a squeamish age, P tures, fantastic chaos and incompa- to persuade- the shah to relax his:'-;' donistic- age, intolerant in an' ec L table, demagoguery followed. The ease press censorship; release ` menical age - in short, a fanatical pajama-clad "Mossy" roused the mast grip, sea with h impassioned spieks,"weeps.. political prisoners. The shah later :, man in a frivolous age. He would sad a to leasure,'life and blubbers, after which he would -. these moves ? cno doubt onvinced. his enemies- ? iefnce, pil wealth, saf itself ety, coriYepursuntl collapse in a great- heap and be car- that he was weakening. his, beliefs.. In so doing he puts pq.~ tied, unconscious, through admiring He started to crack down. and the on the: table which his Western'.3- hordes driven.amok by the sight: of bloodbath.. lasted' two days..- This. _ versaries have thus far been uay~tillr his inert body.. The drama escalated. from lug to call.. magnificently; withrthe shah run out- prompted a telephone appeal _ III- if Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE L LAID im w YORK TIMES ON PAGE 15 NOVE BER 1979 Dependence on Iranian Oil United Japan States -s.. 4 13% In Aug. of Total Consumption in Sept. STAT Th e New York nm,/F4ov. 13. IM All percentages except; the Canadian are based on the latest figures made public by the United States Central Intelligence Agency, which.issues?a pert- I percent of American oil consumption in May and 4 percent in September, have been suspended linden an order issued by President Carter on Nov. i2.' - Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 AF TILL A'PEAKED ON P_1GE - THE NEW YORK DAILY NEWS 15 November 1979 Carter mices U.S... gra'n s'...$5B__.1n By FRANK VAN RIPER and LARS-ERIK NELSON. Washington (News Bureau) With Iran about to undermine the value of the dollar by withdrawing all its deposits from United States banks, President Carter proclaimed a "national emergency" yesterday and froze $5 billion worth. of Ira- nian assets in the U.S. At the same time, the administration launched a new strategy to secure the release of 62 American hostages who have been held by Moslem militants- in the U.S. Embasy in Teheran since-Nov:, 4 . r' _. . _ Secretary orState Vance flew to New York to try to block a meeting of the United Nations Security Council de- manded by Iran's religious leaders.- - The new strategy is that the -U.S: _- which has refused to surrender the de- posed and ailing shah, Mohammad-Reza Pahlavi, in return for the hostages- will agree to a Council debate of Iran's= grievances against the U.S. as soon as the hostages are released. - '. - Beat 'em to punch The freeze of Iranian assets, which applies- only to government holdings, had been under consideration in Wash- ington for several days. It was triggered at 5 a.m. yesterday when a Treasury Department duty officer received word that Iranian Foreign Minister Abol Has. san BaniSadr had ordered the withdraw. at of what he said amounted to X12 bil- lion in Iranian assets from U.S. banks. BaniSadr had thought, according t interviews he has given,m Iran, that al of the money_was in the Chase Manha tan Bank, and that its chairman, David l;ockefeller, was paying interest to his) friend, the ousted shah, who is undergo. ing treatment in New York Hospital.. - . In fact, the largest amount was $1.3 billion in Treasury notes held by the Federal Reserve Bank in New York, and the rest. was scattered among other banks. - Receiving word of the imminent with- draw - "I, Jimmy Carter, President of the United States, find that the situation in Iran constitutes and unusual and ex- traordinary threat to the national securi- ty, foreign policy and economy of the United States and hereby declare a na- tional emergency to deal with that threat." Used in the past Carter acted under the authority of the international Emergency- Economic Powers Act. Similar authority has been used in the past to -block the assets of Communist China, Cuba, Vietnam and Cambodia Freezing of assets does not mean U.S. seizure of foreign property, but does prevent its owners from. with- drawing it from the country. At an early morning White House press conference, Miller said that the A long-held principle In making this argument, Vance was asking U.S. allies to violate. the long--,,' held principle that any issue at least i should be allowed to come up for de-~ bate. But Hodding Carter was adamant: . "There is no - way this government can or will negotiate under the gun. otl Its people being held illegally within our own compound,", he's * aid. - "Ther can be no discussion about terms,. ages da items or complaints so long as ' o people are being held.". A State Department task force con ued yesterday to make periodic contact with the student- inilitants- who se' the embassy. One scare occurred, U.S officials said, when the Iranian students received a garbled version of - an- dent in Denver, in whicir an Iranians student shot and killed a 17-year-old .American youth who - had.smashed. hi window. "The Iranians got It the other way around: they thought the student had been killed, and they were really getting threatening," one official said-"Wo-had to talk them. out of. doing anything to the hostages." Praises our values Meanwhile, in Tehran, Foreign Minis ,ter BaniSadr gave a slight signal that Iran may be seeking a way out of the man crisis: He praised America's "hu values" and said that some of the non- American hostages at the embassy might be freed. Reports had said that 60 American hostages were being held. Yesterday,- its was reported that there were: 98 hoe tages in the embassy - 62 Americans. and 36 non-Americans. Most of the non- Americans were identified as Asians. Bani-Sadr said' yesterday that he 'would ask the militants' holding the hqt~ tages to investigate the cases of the no Americans, including cooks and 1a. ' ? tors, and release them if they found to be "innocent" Then, in a remark that- contrasted] sharply with the anti-American tone--of William Miller. d QZSC a :4 a.m. By 8 , the re an executive order, action was designed to protect U.S. owners of property in Iran from uncom- pensated seizure of their assets. The value of the dollar plunged on European monetary markets when word .was received of the Iranian decision,-but the markets closed before they could respond to Carter's retaliation. In New York, the stock market d . clined but regained ground as the day .wore. on. A graceful way out Vance's hasty flight to New York yes- terday morning was part of an emergen- cy strategy both to block a UN Security Council debate that might have diverted attention from the hostages and,. more important, to give Iran's religious lead- ers a graceful way to back out of the stalemate. - . -..._.. The U.S. has been adamant that It will not hand over the shah to obtain the release of the hostages, but U.S officials realize that they. must give the Iranians something. That. something,. they hope,- will be the airing of Iran's complaintsabout U.S. meddling and support for the shah in the lofty fors of the Security Council. _ The public U.S. position-dwelt. on th first part of the strategy - and not on the underlying goal. State Department spokesman Hodding Carter 3d said: "The U.S. government strongly believes) the Security Council should not meet to discuss any issue with respect to Iran while our diplomatic- hostages are still being. held." Vance's goal in New -York was to persuade at least seven of the 15 Coun- cil members either to vote against a debate on Iran or to abstain. - - Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 -CONTINUED Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 previous official Iranian statements, Bani-Sadr said: "On no account do we; intend to humiliate or belittle the American nation." "We want justice" "On the contrary, we want the Ameri- can nation to know we respect. that country's human values." Bani-Sadr said. "We want justice. We just want the American. nation to give back to us that criminal (the shah)." Bani-Sadr then repeated the Iranian position that the American hostages will not be freed until the shah is returned to Iran. "If the United States government ac- cepts cepts our just demand and returns thell shah and his wealth, the Iranian govern-((' ment will be in a position to_start-a news phase and ask the students to follow the government policy," ' Bani-Sadr said. The Iranian- Mission to the United; Nations released a statement say ing?that the hostages were being "treated. hu- manely ... have no doubts about their well-being." 1-. I In related developments: ? Maneh Said Otaiba, chairman of the Organization of Petroleum Export. ing Countries, said that OPEC would be ready to help extricate the hostages.; Some OPEC nations were reported nerv- ous that the U.S. freezing of Iran's assets could set a precedent for similar action against their own deposits, which traditionally have been invested in U.S. Treasury notes.. Treasury.Secretary Mill- er said that Saudi Arabia, a major U.S. depositor, had been briefed on the U.S. decision and was sympathetic. ? The Pentagon ordered two ships, from the U.S. naval squadron in the, Middle East to join an exercise involv-I ing the U.S. carrier Midway and a Brit-1 ish squadron- in the Arabian Sea-south! .of Iran. Pentagon officials: said that they ships were no threat to Iran and carried no Marine landing force that could be used to free the hostages.. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE 1lPP`.~)D LOS ANGELES TIMES ON PAGT_L7-~ 14 November 1979 What's Shah orth? Ey'en' tie CIACan't Figure IfCut. NEW. YORK-The Central Intel- ligence Agency recently tried to de- termine, just how. much -wealth the Shah of Iran had retained- when he. fled?.the nation. he ruled for almost 4 ? ~.f ..~ s Jett ruled fourdecades.:.. 71But.*after:?waridwide-analysis.' the agency was leftwith:a mystery: Shah Mohammed Reza`Pahlavfs financial- advisershad:beemso skillful in cam- outlaying' his--vastassets over the?= .years that the true scope of his hold-' ings escaped efforts to define The. best the CIA's scholars could: .*do, in''the study' completed months before the shah. entered the- United.. States for gall-bladder, surgery and: cancer - treatment.: was . to conclude 'that'. the:- former Iranian-- ruler was worth perhaps from. a quarter- to three-quarters of a billion dollars. or, perhaps, from $100 million. to $800. million, ? The vagueness of the. figures.was. - testimony not only to the financial secrecy of the shah's regime. but to. years ?of -blurring the- shah's state;, -foundation and personalfunds.: The CIA's scholars. said they be lieved most of the shah's money was` in Switzerland and Weste=a Europe and that perhaps 10% of his assets- .were in the United States.:. ?. ,, .: Some bankers, however, say ? the shah's personal..' portfolio .'Alone.. is worth well over 31 billion, and once recent' estimate set the ftg'..lre at Per- haps, $17 billion.. Some investment: bankers with foreign contacts- say. that perhaps between 32 billion and' $4 billion was transferred from. Iran. to the United States in the two years,. before the shah's regime toppled.', "He- was the country of Iran.'' a knowledgable banker with ties to the Mideast said Tuesday. Just one.meaI sure of how much power the shah had: ~ BY JOHN J. GOLDMAN and ROBERT E. DALLOS- `- .- 1 - . , .%, .. TI.,.. slow lrrB.w - f _ - was that in, 1976,'tle .Iranian budget contained a $1 bifion discretionary fund solely for the hah's use. ! The issue of the;hah's wealth was .underscored Tues&y when the re- gime of the Ruholih Ayatollah Kho- mainl demanded tint as one condition for release of the lmerican hostages in Tehran. the United States return the shah's weatl. Some of ?- this wealth, in privatetansactions as ear-s ly as this summer had already begun. to flow back to it Iranian revolu-- tionary regime. zi i? However, like t5: financial ana lysts, Iran's new government faces.' massive difficultiiin trying to deter- mine what the shhhas, managed to accumulate. The cornerstod. of the shah's fi= ? nancial empire-which 'scholars says-. during its height,rvaled the holdinge of the Sauds of Sandi Arabia and the al-Sabah ruling funny: in Kuwait- was the Pahlavi rtundation.which he.: .formed in 1958. $on after.the fount lotion was set up the shah said he was transferring 90% of his holdings' to the new institution, a combination family organization . and charitable. trust. The shah's control of the foun dation was absolute. The foundation's known assets in. December 1977 included everything from 10% of General Motors. of Iran and B.F. Goodrich-Iran to a 25% in- terest in the Krupp Steel Works in . West Germany. In the Tehran area alone the foundation owned four ho-. tels, including the Hilton. Other hold= ings ranged from. insurance and banking to agriculture and book pub- lishing. One of the most important of the ' foundation's' assets was 100% ownership of the Bank Omran, the fifth largest commercial bank in Iran. The bank. founded in 1952 to develop agriculture in Iran, evolved over. the 'years into the royal family's personal bank, ;which made numerous invest- ments worldwide-including some l important ones in the United States... , r One financial analysis concluded in 1978 that the foundation's assets were at least :28 billion to $3 billion. `-The most prominent of the founda- lion's holdings in the United States is i a . 36-story office. building oa i Fifth. `Avenue near Rockefeller Center: The site was purchased. by the :Pahlavi,, Foundation. for 38.6. in0on. The structure-now shrouded iris con= troversy-has only ' been.' recently' completed. AA spokesman `for the :ew York. State Attorney General's office said Tuesday that the,Pahlavi Founds- tion's board of directors had already changed to represent the new Iranian revolutionary regime. He acid it was Also eoetrlbntlai to thus report was Times researcher Vkloria Herat- tpann. expected that revenues from the building would continue to be. chan- neled into the foundation.......... ! ?: One of the largest investments the' shah's government had in the United ` States was a half billion-dollar com-? mercial and residential complex, in.' New Orleans. The Bank of Omran had invested $250 million in the project in 1976, making it that year's..largest foreign investment in; the United States. Last, July, Joseph C. Canizaro, the principal American partner in the investment, bought out : the Iranian interests for $0 millim although the new Iranian regtmef was Twilling. to. :continue the joint venture..:;: The Bank of Omran also awned 5%: of the First National Bank of Wiscon;' Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 sin in Milwaukee. The status of that=: investment was unclear. A key question for financial ana-? .lysts is how much of the foundation's: assets the shah was able personally. to 'bold onto in the days before.he'was toppled from, power by the revolu- tionary government. There, are re- ports the, shah has huge sums. hi Swiss. bank accounts. A spokesman for. the exiled ruler said Tuesday there would be no comment 'on the : extent of the shah's current wealth. ?. The, stat*w of the shah's other 83, sets in the United States, those not linked to the foundation, was unclear ' These inched homes in New York City and on nearby Long Island and 3.000 acres of land in upstate New York. Yi~e; ?~ .~ .This ' land was - purchased some years ago by the American section chief of Savak the shah's seidet po l!ce ' The. land included a huge bam which some reports said was destined to become the U.S. headquarters for Savak. However, it remained a dairj,.~ operation after the reports were made public. P ' ' 1 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 LrNTICLE AFFZZFEDD NEW YORK TINS ON PAGE^& 15 NOVE3 1979 ESSAY Kurds - once 'doublecrossed by the Shah and the U.S. - should be sup- plied with weapons, including surface. to-air missiles, to help achieve their To autonomy. In the southwest, where the main oil- -- fields are located, the area is not con- '~ trolled by Arab oil workers but by two R estab111 Iranian tribes - the Qasbgai and the Bakhtiari - which are not beholden to the anarchists in Teheran. An uprising there would be crucial, especially It Iran the Iranian armed forces are reluctant to crush it. Mobs are by nature. fickle; militant ? ? Bj-illl8rii $afite Islam turned out to be an under- ::. estimated force in Iran, but it is not the only force. Millions of Iranians are ?' WASHINGTON, Nov.1!-Syhen one afflicted with an' oppression worse ~0tion deliberately infringes on the than any they have known, and effigy sovereigrtty of another, and- seizes burning riots for television feed no .Qrisoners in the bargain, that is by bellies. Some political or military idtflnition an act of wars leader is likely to move into that vacu- ?. Since we hope to save our citizens' um, and' it is not immoral for us to laves, our response to Iran's invasion make sure that the successor to the 80- 61our sovereign embassy territoryhas year-old strongman is not beholden to Been muted: pleas to third parties, the Moscow. -raling out of force, a cosmetic switch. Elsewhere In the Persian Gulf, the big of oil trade, a tit-for-tat banking United States should make its military rinaneuver, a finger-wagging at Ira- presence fete. The Sultan of Oman isiilan students here. worried about Communist penetration But restraint need not be paralysis. .,of nearby South - Yemen, and has of ?% a have a nonviolent weapon that can fered to let us make a staging base Lve an effect in Iran: food. That na- ? of the island of Masira. We should take 'film imports 30 percent of its food, and up that . otter quickly, and top that relies on the United States' for rice, with the leasing of the airbases that jlrch of its wheat, corn, and poultry are being vacated by the Israelis?in the ied-grain (in Persia, chicken feed is Sinai. 'fibt chicken feed). - The Ayatollah's?. slap in our face We should now impose a food em- . '. ought to wake us up to the fact that we bargo on Iran, arranging with alterna- are not at present capable of the rapid tive grain suppliers like Australia and deployment of major military forces. Canada not to take up the slack. The - A conventional threat in the Mideast -Soviets could not take up the slack be-. would catch us flat-footed: it would cause we make up their grain short- take us more than a month to deliver Yells. This embargo will not cause 'two Marine . divisions arid support starvation in Iran but will push up equipment. (When Mn; Carter an- Drices, contribute to the general un- nounced his training exercise at Guan- i?st. and make the point around the tanamo to amuse the Cubans, our few world that a superpower is not neces: . landing craft had to be pulled out of Sarily muscle-bound.. :. ., -= - = heavy maintenance.) e}gust as Important as keeping cool is- Belatedly, Carter }Manning ahead: What do we do after - weighing bs secret s are. the Pentagon secret Persian the Impasse is resolved? Assume that Gulf contingency planning study that- the Shah ultimately returns to Mexico shows how power- could be projected 7*hich has had Me- foresight to close into the area, (Our State Department 1[s embassy in Teheran? and the fussed at not being Included in this American-bostages. are released; do planning; fortunately forhardliners, It -ae- turn the other cheek, forgive and was not.) - -_. ; - 4brget? On the contrary - we should - Short-range, we are forced to strip that this, kidnapping with great sera- .. our forces around the globe to create a onsnesa and- turn this provocation to three-carrier task force in the Indian` % rr aa~ ills act of aggression -, - - _ - . - Ocean. Long.;ange, we. must make up gof. for Mr. Carter's scuttling of the Navy this an opportunity for us to end the by building Fast Deployment Logistic collapse of Western influence in the ships; also, to bolster our meager-fleet 'Persian Golf. and to blunt the Soviet of heavy-lift aircraft, we- must build ?`rAove - through Afghanistan and the the "CX" - a new version of the C-SA Horn of Africa- which threatens the air transports whose cost overruns in main sources of Western oil. :. -- - : -the 1960's still give Defense Secretary d''We should take the position that no - Harold Brownnightmares. : ' . legitimate government now exists in With our embassy- staff held- hoe- itan, and that we would find intoler tage, it makes.- sense, to - bite our able the replacement of mob rule by a tongues fora while_The job of creative Communist regime-, .:I-- diplomacy -is neitheri-to. admire- our. -,:'Accordingly, our C.I.A. - already own restraint nor? to- get ready-to blamed or tent conspiracies- thump our chests;. instead, we should mould start conspiring now to aid be planning to react to this act of war c in ran that are re. with.a strategy to stop the Soviet reach.-' UwAyatoua& in the north, the- - for the oil lifelineot the West; r, : . III If Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE APPEA WASHINGTON STAR (GREED LINE) ON PAGE C -?3 14 NOVE4 1979 :e.. events i_Iran : dominate _ . ~,. cur ?a .r u~._.~: ~-. ~ ~r-. ?a:~ J on scen sistant and Mrs. Frank Moore, were already "Murphy, author of the popular "The Winc ~.sorStory."_ Former Ambassador and.Mr' sashaying to relieve.the week's tension. No _, -wonder'this is thedanctngest town around... even. more serious-at the Ken Giddene supper Saturday: night that was . Black from Honolulu. President John Silbe of Bostoii-University, and Gen: Richard Stil Even witlrTedKennedy anitouncingand all those stories about Chappaquiddick; and even. with Ronald Reagan announcing:Soo~ the sole story consuming. Washington. arr every social event. is what-to do abouvthe hostages?in Iran:,r: Jia At a dinner party the othernt. discus- sionstraged?. in varying degregg-of-"polite vehemence. at every. table. r77 and the.opin, ions at one were fascinating Seated together were Houseoriegn Af fairs Chairman Clement Zablocki who coin- posed.. the'congressionai' Letter .to?~ the Ayatollah Khomeini; Deputy D re ollhe CIA Frank Carlucci w o war r-are ul Klimit~ ing is comments lest something be read into them; Middle, t- expert and former Undersecretary of State: Joe Sisco. who. as president of. American University had-some- thing to say about Iranian-students; a beau-' tious young Iranian women= with!Zbigniew-?. Brzezinski staffer, bearded- Bob:Huriter -Shirley Metzenbaum who was t-he,..bestlis- tener; and Carl Rowan,`who did the' most: 'talking:- Most rejected the-idea 'that we-should have conducted' a tit-for-tatoperation. here -the-minute our embassy : over. there was in vadq i. The Persian girls who has family. in Iran,, said. Khomr ini;isan absolute madman who might then'haveordered' the-Ameri cans killed Sisco saidtheii-are definite -signs on. his campus that some Iranian students are shift= ing from,support of the_Ayatollah%because.. his dictatorship betrays-the goals- or-the-.revolution. Zablocki produced'Ahe letter: dor Elbridge Durbrow? Jim An?ieton nt L.L& -: a Genera and, MM -Im. Eaker and Charles Energy, and Mrs:DuncanrPresidentiaLAs-;w.6`` __- last month: 'Peoplecame from all over the. ';country,"shesaid.("Iwasamazed "~_:3 and ship all their students home , months, With thatoff their chest everyone took to She was also oleased'o' er the number of ; privately, au,3CCWWCU w w ~ "6?.~----- `the first time in over lu years, can waxy up-- about one thing-Once alI Americans are out. the morning and see. They arethe kind' h shown an ouncsof. umantty , .: just been, otitfitted!by a-pairsoft:contact. ~. ; .. pie who disagreed with-.him.. A' lenses,bv famed'Dr' John McTigue and' for,off. the'.Koran.7-Wrote: ?? ?- -r- " w. others. Zabiocki: soothingly to a man who- hasn'.L `- ; Clare Stevens.and was walking numerous that evening: She" had to his own peo- =. - g universally ac-- .--..~- % righteousness and piety is __,:z: :._ ._..e. we tifi,rt This great ..,Bruce MacLaury were?there along with- ? shah, but urged. release of the noswg~es? uu -- - posture to the whole rsible for our- inferior humanit~rian~rounds: ,-:-:. .4 'zpersiaaGulf area ?-r rw (-r.Aft?and to do. his will" rough - ;sue :.. - ---_.,_.......t,.... D,._.IASAI,.sn I Mrc--..~ well She was particularly touched that Ger and Mrs: l auris Norstad came:- ;? billed as"An Evening with Clare Luce" and: put-on by Ernest?Lefever, director of the Ethics and Public Policy Center:'He likes-to gather _once a month; around an. acknowl-- :from public. officials to press. pose?a. ques- -tion to the brain - and lethe evening-un :-The question was Is'the- United-States. . __ ..,-.,,, ble de- a we on cline ,, deuce in the American people providing they can get the rightleadership.. . For- two hours La Luce held forth. with her philosophical-view of'the world, ac- apti vat, -_-l fer n re ces c e `ing -reminiscinces;-and; takeoffs of. famous personalities- she mimicked Churchill petectly -and-,so entertained the group.- They sat spellbound. She-wound up unra"vellfng- an hilarious' ing Sen. Nancy Kasselbaum, who was-there;' was the president, and` Arthur Burns, also was her advisor: - present . When the question what can we do about Iran? came up. Burns said'both the Iranian . government and:th'e Iranian -citizens have. enormous assets-in this country which' we could freeze;, also, he suggested, by halting the shipment of spare-parts; their advanced technology.: would eveatualry grind to a dent of the National,Strategy Information. .., Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE AP'PEORE~ ON PAGE,,,! ey'Mem K WASHINGTON, Nov. 13 - The Ira- nian crisis has spawned a spade' work- ing group +n the State Department's seventh-floor operations center that L staffed around the clock. Its center- piece is a large conference table, with maps. a blackboar* source materials and files of the latest relevant informa-- Foreign Service but by way of Central. ' fairs ... At 47, tinds himself in day- to-Intelligence Agency and National Se- day charge of the task force handling the latest crisis... Called "well orgaa- curity Council staff ... Born in pills-ized, deiphia Dec.. 27, .11?0 .... Graduated 1-headed. and thoughtiW by from Priaceto University in 1952 and colleagues ... Has risen rather rapidly eted his doctorate in American through ranks ... Born in New York on Studies at Yale in 1966... Duringthm. April 10, 1932. and graduated In 1967, after two years is Army, with a mes- F y~r~s~ a"__fl_ceri Airdiil~TNu- the . as an ana iris degree from Johns Hopkins School for Advanced International studies .. . agency 258 N - joined State Department that year Fi s Was as consular nsu~lar otricer. sad Harold E,. Sanders, -. 13 years ... woriseo m prvo~ama u. ~.. - ,- Honduras. Assistant Secretary of State for Near_;:$-Near East. South Asia and North Afri- tT to Tegucigalpa. Eastern and South Asian Affairs..: ,L f es, until Secretary of States Henry A. as political officer... In January 1967.. After these two, members of the task Kissinger brought him to state Depart- .detail detailed to Hindi-Urdu language thin- force say that there is no fixed table of :a, -anent ht 1974 as Deputy Assistant Secre- lag. and a year and a ball later found of State for Near Eastern and -himself serving as political officer in organization. with a great many ofth tarp ,. , . s ins rs,. vials filling in whenever a demand for-'-.-',- South Asian Affairs. -Served there three years' ... In 1973; their special kuuowledge or ability ' ` ' "'after a year at National. WarCoUege, % arises. " "" { >~" ~rr.~i k'r tY+f.tir 3x b: Hen/ t ..- became director of Pakistan. Afgbaai' All agree. however, that two Of'tbe ~," ~+ ' ' 'star. Baagladesb Affairs ::: Lesrpoet key members of the task. force are ; Outspoken- Georgian who runs tbs ^?befors his current one was as Deputy Henry Precht, who has beaded the Ira-... Iran desk Perhaps the most knowl. .' Chief of his current e was _.: Wife. nian Affairs office throughout the crisis :.- edgeable official State Department has Mission in '-- Elinor, is also a Foreign. Service: off!-. In American relatlans with that coos} on tenant developments on Iran .: ~:.. cm. They have thneedi item r,', fter fan' ' 111978 , a Named to poet is Apr _i . _.- _ - i? . try, and Peter D. Constable, the chart..::. in Taheraa noe- being bass i ' y n em ~= years te Deputy Assistant Secretary of State Mr. Saunders.. - . ;;'.~?L held by Iranian students .. Since then, -+ v r bas been deeply involved in one crisis "after"another..: *According to col- David D. Newsom 3 lam his sense of humor and cool A balding: sandy-haired; low keyed' *:temperament.? as much as anything veteran of 32 years in the Foreign Sere= else. has gotten him and othersthrough ice ... Was appointed Under Secretary :7i ..Is 47 years old Had just returned of State for Political Affairs in 1978. from three week tr~ons when em-to Iran on a mis. . after serving as United States Ambas- sion to strengthen . sador in the Philippines, Indonesia, and bossy was taken over relations then sent Libya... tom in Richmond. Calif., on - -"N with former Attorney General Ramsey Jan. 6. 1918, graduated from the Uni-. Clark on his abortive attempt to win re versity of California at Berkeley in 1938 _lease of hostages... Born June 15,1932 and in 1940 from Columbia University's..:: r z" Graduated from Emory University Graduate School of Journalism .... A - In 1963 and- spent next After two Yao r y newspaper reporter from .1108 to 1941 ' ;;-,Navy _: - State and publisher of The Walnut Creek . - Joined Department Courier Journal in California.- 194647, 1961.:. Assigned to Rome 1982 and after serving four years in the Navy ...: "'.transfer to- Alexandria. Egypt, in . Joined Foreign Servi in-.1947 and- ??1964.where be served as a consular of - served in Pakistan. Norway Iraq and "^ _B `.'.t Spent late 1960's first at Na- England ... Was officer in charge of ` ticeal Aeronautics and Space Adminis- om 1966 to ~~ tt'ation and than at Fletcher School of f i ff l r a rs a a Atabiau Peninsu 1968 and deputy director and than elk-- Law and Diplomacy . . In August 1970.. rector of the Office of Northern African. ? was named Deputy Chieiot_Mission at .I Affairs... Had difficult time as Assist- Port- Louis,: Mauritius . Two years ant Secretary of State for African . - ,:later he::rwas assigned to' Teheran., fairs from 1960 to 1974, when he often -where unto 1976 he served as political differed, though. never publicly;. with t - consular , Married and has tires the NlxonAdmhdstration's polies 3 Iran- is going: to be r.Iong. slow;'uphill task--It-will probably-be yearsbefo this country is ready to playa political.: role in Iran..: But In the''meaathae- there'll one:' thing ordinary ; Americans .'can. do:. There' is nothing in the:-Constitution `:? that obliges this country-to be run by a president whose instinctive reactionto a challenge-is, a declaration of national.: impotence- -r 'N t1~~-y '_ + : . Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ON PAGE __L _ __ 19 November 1979 Iackmaii!ng the X9.5. The lives of some 60 Americans hung in the balance in Tehran The Carter Administration found it- self woefully short of ways to deal with the crisis. It quickly ruled out a Mayaguez- or Entebbe-style attack as impractical under the circumstances. Nor did the Adminis- tration have the option of undertaking any kind of covert action inside Iran that might have tempered the situation. When the Shah fell last January, most of the U.S. intelligence apparatus in Iran fell along with him. Confessed one Washington of- ficial: "We have reviewed our assets and our options, and they are precious few." EXCERPT Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 f2 T I . LE A.PPEARID ON PAGE ?~~ By. Jonathan C:IRandaf - , g-Ar_ wnahinstoa @o{6,FOrtlSa a.rvtc$.... '?. G j TEHRAN, Nov. .12-A-- defiant Irani Ian government. today raised:-the??ne-. gotiating price for the release of .hos- tages U.S. Embassy hereq an& declared an oil embargo. against:. the United States..- _7-1-_r-, Abol Hassan. BaniSadr, ; appointed: last week by Ayatollah Ruhollah Kho--? meini to run, the -Iranian Foreign fin--, istry, told a-meeting of the more than' 70 accredited chiefs'of-diplomatic mid- sions here that:IraiL has. three _de-r wands: e American recognition.. that. Shah- liohammad Reza Pahlavi is a criminal and must be. extradited to stand trial here. e The return to Iran of the shah's.. fortune, described as the assets of the Iranian people.. ? An end to "American meddling'.:,. in Iranian domestic affairs.. ?. - Later,. Iranian radio and. television:.. interrupted.. its rightly -Programs_ta~_ announce an embargo on. OIL sales, to the United.States at about..tha same time President.Carter-was telling the .United_ "American people -that-..the States would no. longer buy, `Iranian., oil. r Although. "the Iranian announce= meat seemed to. follow Carter's:state;": went, Oil Minister Ali Akbar Moinlar insisted that the. ruling Revolutionary, Council had already made" the ? decf--. sion in a six-hour, theeting this after- noon and evening.. . - - '- Independent} observers said; news that Carterwas"considering-a'boycott-e radio-before-his deci sion was..announcced # ?: ,, THE WASHINGTON POST 13 November 1979 "The: ;Revolutionary. Council . had -considered stopping oil supplies to the United States when the shah was ad- mitted"' to- a New , York hospital, for medical treatment; :Moinfar said. "But they-didn't want to do anything harsh to the -American people;'so they de- layed--it-(the decision]:;.??'.'_. ,. "Tonight, in fact, the: Revolutionary Council made the decision to stop oil exports to the United States," he said, insisting that Iran. had acted first. The minister said. the decision would be "to the financial benefit -of - Iran be- 'cause we have plenty of customers." Analysts here tended to agree that Iran could- benefit.. from higher spot market prices- and. noted that Japan recently : had been pressing ..for as much as a. 40 percent. increase in its normal oil import& from Iran. - The. Iranian announcement -that it ,was:--cutting -oil deliveries -to the United States. contained no, indication of whether- Iran was , ducing production. Asked: to, transmit Bani-Sades de- mands?to Washington, diplomats from: countries -as' politically- : different as radical Algeria and neutral -Switzer-. land. ' raised.. objections- to- the. form .1 and. content of the .Iranian-- govern-.. ..ment1s initiative In.Tehran. itself. -about 1,000 unem ., .ployed men, mostly high school gradu- -ates, took over tbe? Labor liinistry to back demands for jobs-.unemploy- ment payments and health insurance. Shouting "down with fascism, down. with reaction and down with tyran- ny;" the unemployed were received by Labor Minister All Esbabodi after routing the Revolutionary Guards. who unsuccessfully fired over their heads in an abortive effort to disperse the demonstration. - The demonstration, organized by the Union of Iranian Communists, was one in a series called to protest widespread unemployment. Since the February revolution, 2 million to 31 million of an estimated 9 million work force have been jobless. .'At the occupied US. Embassy, meanwhile, a student leader said the 500 Moslem militants who invaded it eight days ago were armed with just 10 pistols and were surprised to meet no resistance from Marine guards, Reuter news service reported. 'Observers searching for a glimmer of. hope noted that the way was now open not only for an American ges- ture; but also for discreet diplomacy likely to meet Iran's objection to any- thing visibily connected with formal mediation. [In - Washington, - a' State Depart- ment spokesman said the hostages v4U be permitted to receive- letters from - their families.]. ' ? ~; However, the diplomatic consensus was that there appeared little hope of any rapid resolution- of the crisis. - - . Swiss Ambassador Erik. Lang-re- portedly argued that Iran's- charges of espionage at the U.S. Embassy did not justify taking hostages. . - ' -International practice in--such cases" provided, for expelling diplomats; re- ducing an embassy's size or even breaking diplomatic relations, he said amid applause from Western ambassa- dors. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 BaniSadr replied this was not a time to be absorbed in jurdicial de- tails since the Iranian people have suffered humiliations at the hands of the United States. -Algerian Charge d'Affaires Mustafa Beihocine asked if the message were Iran's final word and if the ruling Revolutionary Council could not sof- ten its language. Bani-Sadr offered no such encour- agement. Signs of tension not directly related to the US. Iranian crisis were also ev- ident from Tehran to the rebellious province of Kurdistan in the west of the country- Britain, for example. today followed an: earlier U.S. and West German lead in urging ins nationals "without a need to-stay" to leave Iran. Possibly prompt in the'. British deel Sion were recen Iranian press reports accusing Ambassador John Graham of running a spy ring auviscul Y wor ing with srae an T. espionage a en? cies o ea ers o ran's revolu- tion. Another recent article alleged that the Anglicans' Church Mission Sod ety hospital and other services in Isfa- han were spy centers. The church's facilities were taken over recently by Islamic militants, and the Anglican bishop in Iran nar- rowly escaped an assassination. at- tempt.: - . , . ._ ? . . In Kurdistan, further fighting was reported, with Kurdish rebels said to have launched an "all-out attack" last night on the major city of Sanandaj and the regional towns of Jovanrud, Mowsud and Saqqez. - The report, from the official Pars News Agency, said the fighting contin- ued today. it quoted a progovernment Revolutionary Guard commander in Kermanshah as saying, "A large num- ber of people have been martyred"- the Islamic term for killed-"or wounded" in.the fresh fighting..In Sa- nandaj, the news agency said, rebels had used rocket-propelled grenades against the Revolutionary Guards. Tehran press. reports said a govern- ment goodwill mission -has returned from Kurdistan without having yet persuaded Kurds loyal to Sheik Ezzed? ine Hosseini to accept a compromise apparently approved by Abdurahman Qassemlu, the leader of the Kurdistan Democratic Party. - The Tehran authorities' apparent willingness. to negotiate a.. separate -peace with the party is a full measure of their- military weakness. Only three months agd- Ayatullah Khomeini. or- dered talks broken`-off and the rebel- lion crushed by force. But both the Army and Revolutionary. Guards -in Kurdistan are reported to be in a shambles. In front' of the US..' Embassy, crowds kept up their anti-American chanting as the student captors of the hostages announced a five-day fast to back their demands: The students said the hostages Dozens of Islamic groups-ranging from Tehran bus drivers to diplomats abroad - joined the fast, which will be in effect from sunup to sundown. Meanwhile, a 36-year-old Iranian who immolated himself last week in front of the embassy to back Kho- meini's demands for the shah's return, was reported today to have died. His last will and testament report- edly left all his worldly goods to Kho- Reuter quoted a student leader at the embassy as saying of the Nov. 4 takeover.. "We had expected that many of us would be killed. It was. quite a' surprise." The 24-year-old leader, who gave his name only as Hassan. repeated the oc- cupiers' insistence that no hostages will be released until the shah is re- turned for trial. Hassan said a plot to occupy the em- bassy was hatched about 2% weeks ago and was planned. down to the last detail Only 10 students were aware- of the plan,; until the morning of the take- over. Then, they gathered some 500 ..trusted Islamic students at four Teh- ran universities, and the leaders told them where they should go In _ the em- bassy and what they should do, Has- san said. "First we made sure everyone knew how to fire a pistol or an automatic rifle, which we knew we would find inside the embassy," he said. "But re- ally we had a maximum of 10 pistols between us." He continued: "The whole group of arpund 500 assembled a block east of the-embassy, ironcally near Roosevelt Avenue, at 10:30. They immediately marched west along Taleghani Ave- nue towards the embassy's front gates. "The girls marched in front and we all sang and chatted. We let the girls march on past the gates, then turned and faced the embassy. A few hand- picked men ran at the gates and clam- bered over. The gates were not pad- locked and they were able to open them easily and let us all in. "There were three or four Iranian policemen, armed with pistols, inside the gate but they were dumbfounded. Anyway, we knew policemen were un- der strict orders not to shoot anyone. "But we were surprised to find no Marines. We walked forward 'in groups in all directions through the compound. We met-no resistance. The four- or five Marines. who live at the .back of the compound locked them- selves in their quarters. - "We all went to our, arranged posi-- .tions, occupying. the-. chancery, the visa section and the. bugalows first. Most of the. Americans calmly put their hands on their heads when' they- { saw us," Hassan said. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 ON PAGE__ Z 13 NOVEMBER 19T9 ~i::..9`.?IG.z~!'!itiw.C.1Y,:f-tiafii}.~'3;;Iry~R...'.~r~.tStl..4.? _.. $Orp; CrltfdbIM1IS.pA/w1el(17_. Whtttthe E iftedStatesis a ia~crmarlcet ioi Iran,.Iraniaa oil comm to ody abo 4 per cent of American coasumptioo. ~- - - , Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE AMARM ON PA PAGT ~/ THE WASHINGTON STAR (GREEN LINE) 13 November 1979 By Phil Galley w,.pin~msar stW wriar President Carter has :halted oil im ports from Irani in a a ,move. designe& to demonstrate;Americaa determit nation. without provoking Iranianl militants holding more than-60 hos- tages in the U.S. Embassy inTehran.' - - "Nonneshould underestimate the resolve of the American government and the American people in this mat- ter; : a_ grim-faced Carter said yester- day, in, $ brief statement. broadcast from1the'Wbite House..'-Iris neces- saiy taeliminate any suggestion that economic pressures can weaken our Thei president emphasized. that it "is ,vital to the United States afid'"to every *other nation: that the lives of -diplomatic personnel and other citi- zens abroad-be-protected, and that we refuse to permitthe use ofterror- ism- and the seizure and the-holding of hostages to impose political de- mands.... , , ~v ...ti.~ . n .. :FI As administration officials: view the-president's action, it could pro- vide impetus,,ta U;S. energy conser- vation; ease American.-anger and frustration over the crisis and dis- courage other countries from trying politiear" coacessifoas:f All of ? this could,b4raccomplished, the officials say. without forcing Americans back ; Butthe.president'sdecision in-- volves.some- risks - including: the . possibility that Iran's revolutionary-. Khomeini;and his Moslem followers-? could' be provoked = to?fnrther: antf= US: move& .There;is alsa the,danger of added. energy-related inflation in.. cc nt u ~.?at-_:..a,. .,.? rJ Y3 =i ^i 1-'fiS c;y;rarr ?r Administration- vofficials- regard- neither asa.likely prospect.. how--. A~ked`etiorit theohaace of Ira ~ -retaliation;:"a-senior! offfeial, toldre- . porters;"'Phere'is' uaahimity among action ontheirpart-It_is merely'an-:- act ofself discipline.o our Another high-level official in- volved in shaping economic policy said that if Americans heed the president's call for conservation, the boycott of Iranian oil should have a "favorable impact" on the U.S. economy. "To the extent that the American people support the president and re- strain their own demands and use of petroleum products. I would see this as not impairing our economic out-- look," the official said. "To the ex- tent that we do not show some restraint, we would have to be con- cerned later about possible price- actions." - . Officials insisted that the presi- dent's only concern in, taking the ac- tion was to demonstrate that the United States will not bow to eco- nomic pressures or. political terror- ism.---... - - ~. They-conceded there is little hope. Carter's action will cause the Ira- nians to relent in their demand that the United States hand over the de- posed Shah?-. Mohammad - Reza -Pahlavi,.who is-undergoing-cancer treatment in a New York hospital, in exchange for.the. American hos- ? tages The idea of the oil embargo, they said, had beeanone of the options under consideration by the presi- dent almost from the beginning of the crisis,. nine days ago when Ira- niaa.,,militants stormed the_U.S. Embassy in Tehran and seized, the ; hostages.. i; ..Carter askedCabinet. members last week to assess the political and economic impact of such action. When they made their reports, the president decided the advantages -clearly outweighed the disadvan- , pages:: ,:,.Administration sources said. Car -ter, who canceled plans tolpend the weekend at-.Camp. David. and-re- mained at the-White House, made the decision. Sunday to carry out the embargo and went over-the plan one last time with his National Security Council late that afternoon. !*-He was advised that it was. about the-- strongest. action he could take without risking retaliation by the 'Iranians. His advisers also saw it as a Sara opportunity to enlist the coun- try's support-in the cause.of energyl -;conservation. . {.. - 44, ,< -..:. ;y. U S. intelligence officials sug este that the sooner ericans sever their depeauence on Iranian "o7 a er. With. r an plunging deeper into political chaos,.it is possible that a new internal convulsion could bring oil production there to a halt a development that could have serious repercussions for world oil supplies. _:._~ ?.. ': Yesterday,. about 15 minutes be-- fore. the president announced his -decision, the State Department ad vised= the- Iranian. foreign ministry in.Tehraa. Minutes after Carter spoke ...Ira-- Wan officials; in an apparent you- can't-fire-me-I-quit response. an- nounced Iran-had decided to cut off oil exports to the United States, -- Officials in Iran said they had de- cided to cut-off oil shipments to the United States before Carter's an. nouncement and planned to sell the oil to other customers. The administration also Informed .membersof the Organization of Pe- troleum Exporting Countries yester- day afternoon. In doing so, it asked OPEC membersto keep oil produc- tion at current levels so the Iranian embargo did not lead to a worldwide reduction in supplies. _ --- Meanwhile, U. S. officials said yes- terday that efforts to secure the re, lease of the hostages in Tehran have made no progress. but they said the administrationwill continue to pur- sue a settlement through diplomatic channels: "We - .: still have a number of diplo- matic efforts going in various chan- nela," said one senior official. "I do not want to go into what those specific)channels are. I do not think it would' help to disclose them. In- deed, I think it would be harmful if I did The official said the only"eneour aging" news from Tehran is word -that "the hostages are having more access to people from the outside who can come in as observers." ti Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 ARTICLE APPrai' inc. nn-j"&' J; ,. .- ON 12 November 1979 `Deportation Is a Poor Trick' By Loretta Tofani Washington post Stan writer Iranian student activists in Washington said yesterday that they plan to continue demonstrating here and will not be deterred by President- Carter's- order that Iranian students illegally in, this country-be deported. The activists, who attend universities here, continued -their demand. that Shah-'Mohammad, iteza Pahlavi, now undergoing ~e ea en. New'.York, be returned y _ . to Iran. ca 7s ~ C, Aware of the growing anti-Ionian feeling-in-this coun- try, they nonetheless voiced' the Iranian government's position - thattrthecmore than 60 Americans ? being - held hostage in Tehran should- not be released until the shah is returned to. Iran. "Deportation _?isc a,---very poor trick,"-- said an, Iranian student at George Washington University who called himself Teimoor...,It will not-work.. If-:only one student is left here, that student will demonstrate.".._:: r Another student, interviewed at the- Moslem Students Association at 16th and Montague streets NW, said: "If they wanted to deport-me, `even. though I'm here legally, I would go back gladly. I. don'ts feel like I have to,waste my people's money by being in the United States." Carter ordered`the Justice Department .on Friday to- deport Iranian students-who are illegally in this-country in the hope of reducing the possibility. of violent clashes between Americans and Iranian students. Government officials here believe-that any such incident might pro- voke violence against the American hostages in Iran.;.. . ..Beginning -today, immigration offi- cials are expected. to vsit, campuses in the Washington area- to check the status-of Iranian students. In areas of the country-with relatively'few Irani- an students, the Iranians probably will 'be asked. to meet with officials at the nearest-immigration- office,- according -to a Justice. Department offciar Students suspected.oi_ being is-'the- country illegally -deportsummarilg . It 'they are:;unwilling: :leave; -a`?Justice''Department-otfieisi said, they are. entitled to, hearings, an Those' students Who do of suppo t the government .eotrolled..b Khomei=t" and fear that theg will,be,in danger-ifs .they return home wilt be. allowed ta' ask for..'political~ asylum; : the : offici said.:- b wr: i ,. =w.. In Interviews with a number of Iran fan students:yesterda5C.. tr: cafes and, -dormitories and at the:George Wash ington University. student`center;'a reporter.-was met with-angry rhetoric :. about-the shah and past U.&suppo ,-of him. The students interviewed. said'. they believed the- Americans held hostage In Tehran should -not'be re-- leased until the shah is extradited. Most of the students- interviewed said they did not know one another, yet all expressed similar feelings with the same- - intensity-, and similar rhetoric. "The shah took fingernails out of our people's fingers and. eyes -out of our, people's sockets," said one student as. he sat at a table sipping coffee -with a friend in George Washington Uni- versity's, Marvin- Center. "We want him' dead, the student paid. "The. Americans must stay- host- age until he is .sent back to Iran," - The students, all of whom: said.they demonstrated-here frequently against the shali' and. Steel Institute- annual meeting. "There is at least a good --possibility- of -.a world steel shortage beginning in 1985 and growing thereafter." The ciA bases its forecasts on a "projected buildup of steel capacity of 51- million tons, or 80 percent, in non-Communist Third World-1 nations through 1985. . More home-grown steeL New capacity in those nations would be 115 million tons, according to the cMA's economic sleuths. noes should be producing 75 percent of their total steel requirements by 1985, up from 61 percent last year. As a result, their need for steel from large exporting nations, such as Japan, Great Britain, and France, will decrease. "Less developed countries' net steel imports will grow much more slowly in the decade ending in 1985 than during the period 1966-75," says the cu. The crA points out that steel executives in Japan and Europe believe chances of steel shortages in the 1980s are remote. "Most steel executives, partic- ularly in Japan and Europe feel that excess capacity will persist well into the 1980s.. Only a-. minority believe that reviving. demand will place capacity under heavy pressure by 1985 with steel shortages and soaring prices the result." . ^ Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ,RT ICLE APPrARED -N P&GE - *)uncan :Paints Dar: ` Oil Picture , Precariousness: THE NEW YORK TIMES 10 November 1979 Those who have attended the Duncan briefings said he has stated that oil su plies in the non-Communist world next year will drop by 300,000 barrels a day I because of the depletion of old oilfields. This is not a large amount consider-. Ing that production, according to esti- mates prepared by the Central Intelli.. gence Agency, is now about 52.2 million barrels a day is the non-Communist temT~ ~ tft thar. r A"? In But Mr. Duncan acs warned that it could be enough to bring on disruptions because the demand-supply balance is so delicate' a "' '. .: Soviet oil OOutput Down , , 'Complicating the- situation is a drop ins: Soviet, domestic oil production, Which means-that Moscow eventually, will have to buy oil from members of the Organization of Petroleum Export- ing Countries,: probably those in the Middle East. Soviet purchases would only serve to put more pressure on both the price and availability of crude oil. Those who have heard Mr. Duncan's assessment also say he has warned of the possibility of sharp reductions in 'exports of oil by Kuwait and Nigeria. Nigeria is a major supplier of crude I oil to the American market; exporting about one million barrels a day until re- cently when exports slackened some- what..., While?Kuwait sells little oil to. the United States, it has been exporting about 2.4 million barrels a day in recent months, mostly - to other countries. Should a significant fraction of that be withdrawn from the world marker, major supply problemswould ensue. Task Force Formed In October With ail-these factors in mind, the new interagency task force on energy supplies was formed last month to up- date= contingency plans ? drafted. last spring as, a result of uncertainties aboutlranianexports -- -- - John C. Sawhill, the Under Secretary of the Department of Energy who also is the director of the task force, said the contingency plans were being revised... "We are developing contingency plans, - based on those drafted last spring, in an effort to deal with a wide var iety of energy- shortages that might, arise,,.. Mr. Sawhill said today in an intervirw.. He added that the project had beeii receiving the "top priority" in the ? l nergy Department and that."we're looking toward the development of new- plans asvariables shift." - i --: As to the specifics of these plans, Mr.. Sawhill said. "I'm not going to ccm went on the contingency plans or they options.'';. - , -.. Chokes Termed'Draconian' . ' ..: " -But some of the choices - were de- scribed as "draconian'. by Senator Dale L. Bumpers, Democrat of Arkan. sas, after be left a briefing given by Mr. Duncan on Wednesday.:,:. 0. William Fischer, an acting Assist. ant Secretary of Energy, is the staff di- rector of the task force. It also has rep. resentatives from the White House staff, the departments of Defense, State, Transportation. Labor, Com- merce, Agriculture, and. Health and Welfare, as well as the Environmental Protection Agency; the Nuclear Regu. latory: Commission and the Federal Emergency Management Agency. One carticivant in a Duncan h.4.A safd-uiro~nnation was relaved from the C.I.A. anct the maior oi companies. as rgy Department. - wen as - ?mey stioweci us a w e bunch Of charti, w e were labeled con t en- r , said one a cr ant "showing a orts . would be down s r y next year. but that non-OPEC e~x i0 rs wo export s r a tT7Ty more ~ oil next year JDAn Dramatic Rise for British . Among the non-OPEC members ex- pected to export more oil next year are Mexico, Britain and Norway. Britain, for example, is ' currently. producing about 1.7 million barrels a day from its North Sea wells, a dramatic increase over previous averages.. "Mr. Duncan stressed that the vul- nerability of OPEC production was of great concern to the Administration," one source said. The degree of seriousness was evi- dent in the testimony Mr.. Kahn gave today to the Subcommittee on Ene and Power of the House Interstate and Foreign Commerce- Committee. 1i said the Iranian situation was not onl endangering supplies but also driving up spot prices for oil and thus contri uting to inflation. = .. ., ' - - For this reason, he added, A tration leaders are privately reconsi ering a wide range of options to reduce energy consumption in such a way that the 700,000 barrels a day of oil normally imported from Iran would not be need- Of Suppler Cite4 tit tsrienn s - := ;Y.~ By RICHARD D. LYONS WASHINGTON, Nov. 9 Secretary of Energy. Charles W. Duncan Jr. has told Congressional leaders in private ? deal with severe-cuts in petroleum - Z1 v iucts . 1 ... some Congressional sources said the With an eye to possible supply dis- ruptions, Administration. leaders. am measures, such as a much higher Fed. eral gasoline tax, that had been previ. ously discarded: as poltically impoesi-, .as 50 cents a gallon. gasoline rationing and- even mardatory.wage and price.; controls. But he stressed that these measures least for the moment, since energy sup- pi lea at present were ample to meetde- Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 THE WASHINGTON POST MAGAZINE ARTICLE APPEAP. 11 November 1979 ~.Y`? adv.. 414A DTI PA(3$~_- ~. _...,.~,. ~+& `I VWliee~ can someone HM& pre"OU 7 docu- ments-that are so often quoted in the press? Details about the Glomar Explorer project, the wiretappix g i of civil rights leaders and other activities appear with somefrequency in newspaper articles but no library sees to have the background documentation. Many of thm. Papers weretobtained bar repoa or rash` era Ming requests under the provisions of the.Feedom of Infor mation or Privacy. acts. Anyone has a nghtto ask forinformatioa _ under the, acts.. One-' cintot ?source for such- informaton is the W t -based. Center for National Security Studies- Fora'. nominat.:cbarge,ths-organization makes available am array of ;~ once-seaetgovernment d0Cun . ,r' < _._ __ ' Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 AZiC.E AP EARED LOS ANGELES SUNDAY TIMES ON-PAGE -/ 11 November 1979 s Halting Love C-1r 4.. w? J''`t r ,-.?_i^.+?' ~5-~" t.` sL"r.5 .+ WASIDNGTOPI=In :tat =19fl. he Central Intelligence Agency lawn to undertake-three:secret in operations,,. ed. by;. la duly describud::them.taeight congre&,- sional.committees,- No.objections were voiced, and theprojectsbegan..: OneKwas=avpropagaadasc opia& Thesecond involvedsupplying radio. and associated equipment< to Egyptian President 'Anwar Sadat so he..eould:', communicate- -.with; aides without being"overhar,by Wiwi mihh ry. cOicers*=gnd `so .he "could eavesdrop on his own.:military:; third -called'for: supplying-the seam equipment to ,Suda .Presidentt: NumeirL. , , ,,: -,,.,r~ Bur.'. all' ~lhrec?. operations w "blown '.several` m nths. Inter;: era; cording .. to Administration' so when; they were,. mentioned;: ia, New York Tlmes:_, ' {~, . Tlie projects Were. ated . in the newspaper as-esatpl of a?new per., missiveness- by* tonal : over sight'committeea.toward covert CIA actions only a few years. after the eu posure of CILabuses,*--ri !.. ` .1 Administratioa^tc(fiuals s ate;- th projects e inples Hof' else, however. They see them arpa" of a pattern: that.- has brought.U.S. covert- moos to a- - virtual -- halt through leaka'7indthblamei'tCi sure requiiemente c _th Hughes Under. that:pro6iaCan: then?Sen. garold~?~ = vgties' D-? Iowa), and the l ite=Rep:=I.eo-J' RYM (D-Calif.).as an amendment, ta?an' propriations. measures siz !commi' and the V60-must bie fled plarmedcovertactivities* #er GurbsUrge _ v..i s A.. .'T',r~f~1,.~ 2',?`.a,' L?'4~i"?~ ^rL31 ETBOELBTGTOTH:.r. > .I =_^.,, ? , Selz . Barry - Goldwater (R-Ariz ) ald this means that "nearly 50 sena- 'torL:t over,-120 congressmen . and 'numerousstaf members receive this implication was. that this- no way to committees,-created. after passage of must be briefed.on sucltprojeets.:;,_ requirement . In large part it is spurred by a desire to curb leaks such as the one that "blew" the 1977 oper- ations= .- -?.- - on_ However. Aemii>istratiofficials and congressmen preferto take`the position in-public that the House an Senate Intelligence- committees hav brought. the CIA_ under.:c ontrol; and thus no longer. needed 41 Additionat,support for_the `comes from the belief of some in Con grew that the public is tired of seem the. CIA picked on and that it no `11& in-ats-from Afghanistan. There is' recognition' one official said ..that. the. United States should have :options' for` protecting itself in the!World; options that lie between a mere,-diplomatic. protest. noteand But ;the eform.effort;does~ iameul mon so trobelAajority_in Cgress probably . favors -. repeal = of th ,but nos Hughes-Ryan measure, members 'of the six committees object to losing their briefing rights-just as Hughes-Ryan., also ._ tied into. mileage in voting: for -aharttr.;tha At the. :samei;t ne, 'many' lltieraIs who~want:aFtight:rein ori.?the Intel ligen e , 1 l ant fo delay. fi nal-action on-a-newrcharter.becai they believe that sSen: Edward' Kennedy (D;=Mss)'-lf'elected-Pres ident'neit year -ibotd'bk more sym pathetic to th= than: President Car tet is. s: ? . intelligence= community? =make keep secretthus making them near I t vas p a s s e d A. 1geof disclo public sentiment for--forbidding all One effect' of- Hughes-Ryan ap. only: covert 'projects . but the. lives of `might have = emanated from, Ieaks.' Sena Walter. D. -Huddleston `(D-Ky.); -chairman-of, the Senate Intelligence subcommittee on. the charteroaid in an interview...: "But whether the leaks came from Congress, the White House; the .State :knows? President-' Carter.. has'. said there. ;were:: more".-Ieaks'from' the White House than from ether of the g-p "A t t moreahan'twoagents..were. lost,"' said ~ aa; Administration: source; aional committees for most leaks- i must be briefed. under Hughes-Ryan to covert action asinherently, moral- lions bey leaking. One example of congressional leaks tended publicly'tfiat the $.& govern= ment had evidence-that Panama lead-; er; .Omar Torrijos- Was?.involved,.in. drug~;trafficking.;To : jrefute:th and vicg chairnaag of the Tntelligetice ScQ~YTINtiEG Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Committee." Sens.', Birch Bayh _ (D. Ind) and Goldwater, said Torrijos' brother had been indicted on drug charges but not. the Panama-. leader. himself. During debate, the Senate, was told that the Panama leader's residence was bugged by U.S. intelligence. as was his hotel room diming a meeting of the Organization of American States. The bung was soon report- ed in the U.S press, which ended its usefulness..._~;, ;w- ;,11,~ Hughes-Ryanrhas also - inhibited the presentation: of- ideas for covert actions, several sources said. "Covert actions are by definition controversial actions these days," one said. "so they are not being .proposed very much because of the: risk. of leaks and of damage to the career of the proposer.- "And of course Allied intelligence services are telling us very little be- cause of all these leak's". Ina new book. "Foreign Policy, by Congress.". Thomaa:.M. Franck an Edward Weisband- argue that efforts to tame the intelligence community have nowgone full cycle Ten years ago members af Cott . hands with intelligencec_ they-wrote. had to be done out. of the limelight;! they said, and only with: exposure of CIA skeletons-assassinatioxt at- tempts, mail openings;. drug _esper now the pendulum is sw ngingbaclc tensity.on.thelill nowiocsestraining propriations committee markup -so- question of encouraging the. CIA .,.td pared for a: final meeting with: Ad= President Mondale;=,ta- iron-: out re drawn up .by the. committee. Tt-is al- .ready less restrictive than?wherr-firsN -published a year, ago, but the White `-House seeks further dilutions::: .p? -one 'of the chief- issues ,is whether :the ak "should be prohibited :.from 'ever using members of. theeAmencaa .pre .?the:clergys or: the,~acad~i ?commumty for spying :.Tlie-CrK :riot now?and-:has-.not used?them_for ? the,last four-years; Huddlestoir ?but~ft doss=not:wantthe'prohibition. :writtenintolaw:; x+? ' M'-Another question ?is whetherthe CIA should be permitted to get intel ligence information -from- unwitting :Americans-by-non-obtrusive means. The committee would permit the CIA to- try to, get such information.-from an `oilman. say;'who- aright:>just,- be back from the.Mideast-throughhis secreta&or':at.a -cocktail-party, but not through.wiretaps=cr'maii open- ingsHuddlestoasaid?; ?'~.`- Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 NEWSDAY 26 October 1979 ruz Traffi~ ~s ?u Fflouri By Anthony Marro - Newsday Washington Bureau Chief Washington-A major government report, said by the Central Intelligence Agency to be probably the most comprr?i ive ever done on federal drug law enforcement, contends that illegal drug traffic still flourishes despite huge commitments of money and effort, and that many of the publicized "gains" by federal agencies have been overstated and only temporary. The 214-page study, made public yesterday by the General Accounting Office, the investigative arm of Congress, says that the problem persists be- cause of "enormous consumer demand, tremendous profits and little risk' that traffickers will be ar. rested or jailed. "In addition," it says, "the federal drug supply reduction efforts have yet to achieve a. well inte- grated, balanced and truly coordinated approach." The essence of the report, in the words of one Senate staff member, is, 'The problem may not be insoluble, but we're not.. going to solve it the wa we're going about it." - - A spokesman for the Drug Enforcement Agency the principal federal law enforcement unit, w quick to challenge the findings, saying that muc of the material is dated, and that the office had "r gurgitated" many old criticisms that since hay been corrected. The report, which was presented to a Senate a propriations subcommittee by Comptroller Gene Elmer Staats, says that some major successes hay been achieved in the past decade, particularly du ing the early 1970s, when President Richard NIX011 r, made drug law enforcement a top priority. But i says that despite expenditures of about $5.5 billion: since 1968, the trafficking in illicit . drugs grown, and that many enforcement officials believe' that the situation in the Southeast--which the re-_ Port calls a "drug disaster area"-is coiapletely out of control. The study was commissioned by the GAO; but at some point during its.. evolution picked up thy. y sponsorship of Sen. Dennis DeConcini (D-Ariz.), a vocal critic of anti-drug efforts. DeConcini and three other senators have a resolution pending in the Senate Rules Committee that calls for the cre. ation of a select committee that would deal only witli- drugs and drug law enforcement programs. At present, oversight is spread through at least three Senate committees, and there is opposition to the DeConcini plan from members of the Judiciary, Government Relations and Human Resources Com=mittees, which would lose at least part of their au- thority over the drug-control agencies if the new committee were formed. DeConcini, however, is expected to use the re- port as ammunition in his own fight, since it con- cludes that one major reason for the- lack of effectiveness in drug control programs is a lack of a clear, cohesive and coordinated strategy by the fed- eral government. "It is clear ... that money alone cannot break down the barriers that still stand between-success ana failure is tfie war on drugs," he said. "We have ~ reached a point where current strategies, tactics and programs must 'be evaluated, and if necessary changed, if we are to protect our citi- zens from this insidious evil." Among the other problems cited in the study are these: ? While there has been a major shortage of heroin in the United States in recent years, large- ly because of the agencies efforts, many drug us- ers simply have shift4id to other, more easily obtained synthetic drugs, such as PCP. (angel dust), Talwin and Preludin. ? There is no comprehensive border control' Plan, and thus, federal agencies at the U.S. bor- ders carry out separate but similar lines of effort. with little consideration for overall border securi.. ty. ? Bail and' sentencing practices. throughout the country have weakened efforts at immobiliz- ing drug traffickers, many of whom continue to deal in drugs while out on bail awaiting trial. ? The agency has not yet attained proficiency in investigating major interstate and internation al drug violators, and many of its agents have not been trained in the latest financial conspiracy techniques. C01011 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 This last was particularly upsetting to agency officials, who say they have been making great ef- forts in recent years to increase the ability of their agents to make these sorts of cases. "They hit us where we didn't think we could be hurt," said Robert Feldkamp, a spokesman for the agency. "We've been doing a lot of train agents in this work, and we think it's a bad rap." The report, however, says. that in seven of eight cities with major drug problems surveyed by GAO, local prosecutors complained that agents were unable or unwilling to make these cases, and instead concentrated on the sort of low-level `buy- and-bust" investigations that made for impres- sive-looking statistics and large numbers of ar-, rests;-but'did'little W (hVifpt'thaji - They CF,' whichf wi 'idaiiy~bthei' kgenciCS ie= viewed-the-report-befare'pubhicatiort,`said-thiarit is "probably the most comprehensive and authori- tative statement" on the problem to date. The Juu a tice Department, of-which the drug agency is part, agreed with some of the findings, but argued than many of the criticisms are based on "past performance, outdated information and misinter- pretations." - While the report discusses at great length some of the weaknesses in the law enforcement programs, it does not raise, or attempt to deal with, the question of whether the programs them- selves are valid, or whether some drugs simply should be made legal. It accepts as valid the basic goal of federal drug law enforcement: To contain the problem for the moment, and eventually av on the ty and quality of illicit street. Many of the criticisms are not new. For exam- ple, virtually every congressional committee and executive branch commission that has studied the drug problem in the past decade has decried that lack of a comprehensive border control plan. The Carter administration had put together a t proposal calling for a major reorganization of bor- der' control agencies-DEA, Customs, d the Border Patrol-designed to better police southern borders against smugglers and the in- flow of illegal aliens. This plan, however, touched a raw nerve with the Mexican government, which objected idea of anything resembling an army on its bor- der. the adminis tration began serious ,And when negotiations aimed at getting greater access to Mexico's newly discovered oil reserves, the border control plan was quietly shelved. The criticism of lack of coordina o to the operation also is as old one, dating back late 1960s, when rivalries between federal drug law enforcement agencies were so fierce that they often disrupted each other's investigations. In a rebuttal issued yesterday, Peter Ben- singer,.the. head of DEA, said thatsuch lack of co- lency d ira i st , an 'per atldn-_ is a thing of the pa .o per iL_ C .7-..bY nVYi 1A at an -ttimime Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE APPEARED ON PAGE__ THE CHRISTIAN SCIENCE MONITOR 15 November 1979 That myster-1 i y. `flash' it looks atomic Puzzle over what* it really was may soon be solved ByJobeL-Cooley-' Staff correspondent of The Christian Science Monitor W New Zealand soon may provide the first solid evi dence of whether the mystery flash observed in the Southern Hemisphere Sept. 22 signals a new member of the world nuclear-weapons club. US State Department and defense officials say New Zealand's Institute of Nuclear Science at Gracefield, near Wellington, is verifying its findings of radioactive fallout in the atmosphere and may have a final state- ment within three weeks. Since early this month, Independent US scientists have held several meetings under auspices of White House science adviser Frank Press to study the flash. A US Vela satellite picked up the flash Sept. 22; these sat- ellites have detected 41 earlier nuclear tests by the same means. - What had especially puzzled US nuclear scientists was that no radioactive traces had been picked up after. ward in the atmosphere. despite extensive searches by long-range US aircraft, some coordinated by the US re- search station at McMurdo Sound, Antarctica., Prevailing winds, US experts now say, could have carried the fallout from any blast westward to the Aus- tralia-New Zealand area, where it would have been trapped in the rain analyzed at Gracefield. B. J. O'Brien, director of the New Zealand Institute of Nuclear Science, told newsmen by telephone that fallout has been detected equaling that produced by a small nu- clear explosion of 2 to 4 kilotons. The fallout was mea- sured in rain samples, and included many typical fission products of nuclear explosions. . A 2 to 4 kiloton blast - one-fifth or less the size of the bomb the US dropped on Hiroshima, Japan. In 1945 - was the blast size estimated by US nuclear specialists when the Sept. 22 flash was first detected. The earlier 41 tests accurately detected by Vela satel- lites were atmospheric ones, either by China at its Lop Nor test site in SinlQang Province, or France at its South Pacific site in the Kerguelen Islands, eastward of the area presently under suspicion. The flash was observed somewhere in a 3,000 square mile area of the atmosphere south and east of South Africa and north of Antarctica, leading to suspicions that South Africa had tested a nuclear device. South Africa has denied this. Apparent Preparations for an earlier South African test on land were halted in the summer of 1977 after US intelligence satellites verified Soviet satellite sightings the preparations. nuclear experts acknowledge that there is nothing but circumstantial evidence, so far, pointing to South Africa as the source of the Sept. 22 blast. It is conceivable, these experts acknowledge, that Pakistan, Israel, Brazil, or some other power-on the threshbold of nuclear weapons development could have moved a nuclear device into the remote and little- j observed area of the South Atlantic or Indian Ocean, with or without South African cooperation, and tested it i in the atmosphere by means of a balloon, rocket, or j US officials now hope that the final report of the Gracefleld Institute may establish- exactly where the blast, if there was one, took place. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICIL :kx'rZLRJ''r, en PAGE__ Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 TV GUIDE 17-23 NOVEMBER 1979 came to be known) portrayed a Torrijos regime profiteering on. prostitution. drugs, gunrunning. smuggling-and guilty of flagrant abuses of human rights. Had. Watson's allegations been re- layed on the network television news- casts that night, they conceivably could have added to the American public's substantial doubts about turning the Panama Canal over to the Torrijos gov- ernment. This, in turn, might have had an effect on the Senate debates. As it happened, because they were unable to document his charges, the networks held back on the Watson footage. The most telling twist to this episode -a leak-within-a-leak, as it were- did not come until Aug. 14 of this year. On that date. Bernard Shaw broadcast a report on ABC that began: "This man says some prominent Washington con- servatives paid him money last year to lie In a frantic scheme to defeat the Panama Canal treaties and humiliate President Carter. He's Alexis Watson Castillo... As a result of his own investigation (following a telephone tip from the gar- rulous Watson himself, several weeks after the Miami conference), Shaw was able to document that members of a group called the Committee to Save the Panama Canal had paid Watson $6000 to tell the news media the stories about prostitution and gunrunning in the Torrijos government. While It is far from clear that Watson was bribed, as opposed to being re- imbursed, one set of facts seems irref- utable: Watson was presented to the news media-the network cameras most specifically. included-was an au- thority on a pressing matter of inter- national concern. Those who presented him had a strong ideological interest in the issue at hand. Watson volun- teered information that could have af- fected the outcome of the issue in a manner suitable to the committee that presented him. , --111 And the fact that Watson contra- dicted his story later raises important questions about how vulnerable televi- sion is to manipulation by sources whose facts are questionable. In this instance, even though their reporters and cameras showed up to cover Wat- son's charges, the TV networks exer- cised restraint and judgment. What about next time? "Next time." of course, has already happened. Dozens, perhaps hundreds, of times. It is important to understand that the "leak" Is an accepted, quasi- respectable coin of exchange In mod- em journalism. In Washington, where most national news originates and where nearly everyone knows some secret, leaks are as commonplace as parking tickets. Most of them are In- nocuous. Some are offensive to cer- tain bureaucrats, even to senators and Presidents-but are legitimate news stories nonetheless. Only a relative few fall into the netherworld of "national- security" violations, attempts to mani- pulate sensitive policy issues or out- right hoaxes. "I have repeatedly told members of the TV press: 'Dammit,- come to us. If you ask, we'll help you turn a leak into a flood'." The speaker is a mld- die-management administrator in the Federal Trade Commission. "Many bureaucrats who leak stories are doing it for a positive motive," continues this administrator. "Let's say the FTC has been investigating a shady manufacturer for a couple of years. Let's say we pretty much have the goods on him. Now: we are pro- hibited by protocol from formally an- nouncing the existence of this probe. But if we believe the information is something that should be before the public. I can see no harm In leading the press to the story." Sam Donaldson, ABC's While House correspondent, agrees. "The bane of our existence is that the White House controls what is perceived as 'the story of the day'," he says. "Most of what we correspondents do Is things like float down the Mississippi with the Carter entourage-what the White House calls 'planned participation.' Obviously, we can't do this and be behind the scenes, digging. So if I re- ceive a piece of volunteered informa- tion, and I'm convinced that It's ac.' curate. I think it's better to use it than not, in most cases." But even as television journalists welcome leaks, they acknowledge that the nature of their medium has tended to discourage prospective sources-in favor of the printed page. Media watchers are debating whether reporters can-and ought to-be stopped from acting on tips By Ron Powers It was not exactly your standard text- book news leak Measured against ill accepted norms of procedure, this news leak was approximately as subtle as the launching of. Apollo .10. But a teak it indeed was, and the fact that It back- fired does nothing to alter its signifi- cance as a media milestone. For decades print journalism has enjoyed a near monopoly on major stories originating from insiders' leaks. But as of Feb. 10, 1978-4n a bizarre story that did not play itself out fully until August of this year-the news leak i announced itself at television's front door, dressed up in bright packaging, accompanied by all the hype and .audacity that the electronic medium seems to demand. A "news leak," of course, is the in- elegant term that describes information passed along to a reporter voluntarily, by someone who has a self-interested reason for seeing the information made public. (Usually because certain other people would rather" keep the whole thing a secret.) The most celebrated news leaks involve vital questions of government policy, including national security. As did this one. This most conspicuous of leaks took place in Miami, at a time when the Senate debates over the proposed Panama Canal treaties were at their height. At a news conference called by a Washington public-relations man named William Rhaticen, a mysterious Panamanian unwound a horrifying ac- count of decadence and corruption within the Panamanian government. The witness, one Alexis Watson Castillo, was presented as a former Intelligence agent for the country's military head of state, Gen. Omar Torrijos. Watson (as he G+ONTII~ZTr~b Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 'People who leak stories often want CBS airwaves. it was a leaked story. to get their side on the record," points o course that brought Schorr's CBS out CBS correspondent Fred Graham. career to a premature end: his contr - "The strategy is to have the other side versial release o the House Sel ct read it, and then react to it. Television Committee on Intelligence report on J isn't perceived as 'the record'." CIA secrets, which he had obtained rit Hume has contemplated the is- '.rani an anonymous inside contact. sue from both sides-for three years as ? Ironically, it was c orr s decision to a top investigator for the syndicated Po- print the document-in The Village litical columnist Jack Anderson. and Voice-that brought down the wrath of now as a Capitol Hill correspondent for both the Government and his network.. ABC. "The difference." he remarks Under suspension by CBS, Schorr re- candidly, "is that few people In Wash- signed In September 1976. Ington fear the networks-on a day-to- Whether a news leak is "packaged" day basis-in the way they fear the and delivered to television, as. in the power of the print press. Watson case, or whether it evolves from "Television news Is In the odd posi- reporting, as with Daniel Schorr,- its im- tion of reaching a far greater audience plications are many and troubling. Few than newspapers, but of having a people would deny that some leaked smaller impact on policy. So moat of stories have furthered the public inter- the important leaks go to the papers." ,'lest, by exposing corruption and the Nevertheless, television news has "abuse of power and by reinforcing the had its moments In the news-leak accountability of public officials. ut i limelight. Besides the abortive Watson there a point at whi h 9 affair, there was the much-publicized o c assified (or inaccurate) informa- coup by ABC correspondent Tim tion can harm the national securie it O'Brien-who, on two successive nights so, what can a one to impose rea- last April. sent members of the Su- sonable limits on the practice? preme Court and its staff into a frenzy by reporting advance Information on -Arizoria senator Bar Goldwater Is major Court rulings. And the Irascible among those w o etieve that leaks of Daniel Schorr bedevii~d h IA the classified Information constitute a clear ? Warren Commission for and present anger. "They undermine ~, d th FDI anv n, years using unrevealed sources to our Intelligence and our national will, bring off-the-record activities to the-?~ and we have to out as slop to says. "We have an existing law that covers that sort- age Act. It provides penalties up to death for those who divulge this kind of information. I'd like to see national- security violators prosecuted to the full extent of that law-and If that law isn't adequate to cover the problem, we'll have to write one that is." Goldwater added, however, that the leaks that disturbed him the most have appeared In print. rather than on tele- vision. "I wouldn't say that television Is leaking nearly as badly as the few major newspapers in this country," he said. There is in fact legislation being con- sidered that would cover the s ecific question o national-security leaks. Being prepared by Sen. Walter Huddle- ston of Kentucky and other members of Congress, it would provide, among other things, fines of up to $50,000 an prison terms o up o ive years for any person convicted of disclosinng_ the entity of a CIA agent. is law, say Sena a staff members, would no penalize the newspeop e who receive an ~ssemmate t is n ormation. Such attempts to curb leaks, natu- rally, prompt newsmen to quickly raise First Amendment warnings. Jim Lehrer, co-host of public television's MacNeill Lehrer Report, is one. "The alternative to leaks," he says, "is so ominous and so chilling to free speech that I don't think it's reasonable. The only real way you're going to stop leaks is to. have a totalitarian system." -i. CBS correspondent Graham, himself a lawyer and a student of constitu- tional law, agrees. "The problem with these proposed laws," he says, "Is that under recent Supreme Court decl- signs, a journalist who had information about the commission of a crime such as an illegal leak-could be called in by a grand jury -and, if he re- fused to testify, be put In prison. I have found that leaks, in general. have been very healthy to the news process. Of course they must be checked out very carefully." And ABC's Shaw, whose diligent re- porting helped to discredit that gran- diose made-for-N leak by Alexis Wat- son Castillo, argues that television news has at least some built-in re- straints against abusing the news-leak syndrome. "People on the outside," says Shaw, "don't realize how intimidated reporters .': in the electronic media are by the power of Investigative reporting. We are all aware of the impact that a N story can have. It instills in us, I think, a profound fear of being wrong. And an obsession with being right." E Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 MICHIGAN DAILY 7 November 1979 CIA. recruiter meets.prospects ' By STEVE HOOK The Central Intelligence Agency made its annual public recruiting ap- pearance on campus yesterday in the person of Steve Gunn, the agency's regional personnel officer. "I'm not really recruiting," he said. "I'm like a preliminary screener - get- ting a feel of the people's backgrounds, giving them information. ??I GIVE out some applications, but I don't hire people," he said. Gunn said that he analyzes the "background and character" . of prospective CIA members rt to interviews. He gives applications those who are "What we are looking for." There have been no problems during his four months as a CIA interviewer, Gunn said. The past controversies con- cerning CIA campus recruitment have not touched him. "It seems like I have overflowing schedules just about everywhere I go," he said. "Much like I had today." I GUNN SAID that the' CIA is not looking for agents among college students. ,we offer students a variety of fields, like engineering, accounting and mathematics". He said prospective agents "come to them;" that they rarely come out of an academic en- vironment. "0ur egents usually have'experien- ces in other areas," he said. "They languages she knew. In addition, ac- usually have diverse life experiences cording to Stark, Gunn wanted to know behind them - not necessarily why she was interested in the CIA. academic." Much of the interview involved Gunn Gunn described his job as "mostly describing general functions of the CIA, public-relations." He said: "People a talk "which came off as really come to meseeking information about military." the agency, and I give it to them." "A lot of what he said was kind of When asked whether he detected ap- general and flimsy," she said, "and not prehension among students over the ac- very descriptive at all. I had no more of tivities of the CIA, Gunn replied that a conception of the CIA when I left than those who see him don't express reser- I had when I came. He clearly gave me vations. "People don't come to me ap- the information he felt I should know, prehensively," he said. and disguised information I shouldn't JOANNA STARK, a Residential know about." College senior studyin1 tam, a'nt_s wAs one of the students who talked with Gunn. "I wanted to find out what kind of people they were looking for," she said, and.what kind of approach they would use. I wanted to find out what kind of impression I would get of the CIA." ? Stark described the interview as "formal, but comfortable." She said that the. first question she was asked j was "whether or. not I went straight ! from high school to college." She said Gunn also'asked her about her major and her career goals. He also wanted to know how much time she had spent overseas and what foreign Approved For Release 2009/04/28: CIA-RDP05S00620R000501300001-2 ARTI= 6F'P ' ON PAGE /0- Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved ABA NEWSLETTIIf (AMERICAY HISTORICAL ASSOCIATION) NOVEMBER 19T9 FEDERAL HISTORIANS CONFERENCE The second conference of Federal Historians, sponsored by the Federal Resource Group of the National Coordinating Committee for the Promotion of History and the Department of Energy, was held in Washington, DC on September 13, 1979. The National Coordinating Committee is currently a consortium of twenty-five historical organizations; it was founded in 1976 by the AHA, the Organization of American Historians, and the Southern Historical Association. The con- ference was planned by a committee chaired by Ronald Spec- tor of the U.S. Army Center of Military History. Other mem- bers of the planning committee were Fred Beck of the Office of the Chief of Engineers, Karl Cocke of the Center of Military History, Edie Hedlin of the National Historical Publications Commission, Morris MacGregor of the Center of Military History and J. Samuel Walker of the Nuclear Regulatory Com- mission. Approximately two hundred historians representing more than thirty historical programs within the federal gov- ernment attended the meeting, which was held at the De- partment of Energy. RESOLUTION ON THE HISTORICAL OFFICE OF THE CENTRAL INTELLIGENCE AGENCY Taking cognizance of the fact that the historical office of the Central Intelligence Agency is scheduled to be abolished and its functions absorbed by administrative personnel who may not be historians; And being convinced that this is a backward step for an agency that has in its trust the records without which the full record of the nation's foreign relations can never be written adequately, and without which even the future needs of the agency itself cannot be met; And being further convinced that the interests of the feder- al historical program in general can only suffer by the dis- establishment of the historical office of an agency as impor- tant as that of the Central Intelligence Agency; BE IT RESOLVED bythe federal government historians, rep- resenting the historical agencies of the federal government, meeting on September 13, 1979: THAT the Director of Central Intelligence be urged to re- consider the scheduled disestablishment of his historical of- fice and give it new life and purpose to the end that historians may continue to serve the needs of his agency and the broad interests of the general public. NATIONAL INTELLIGENCE STUDY CENTER AWARDS Two of the first three awards for writing on intelligence made by the National Intelligence Study Center (NISC) were grant- ed for works on recent history. The two books that shared the cash prize for the best book on intelligence published or written during 1978 were Perjury: The Hiss-Chambers Case by Dr. Allen Weinstein, professor of history at Smith College, and Piercing the Reich by Joseph Persico, a study of OSS op- erations against Nazi Germany in World War II. NISC awards for research and writing by an American on intelligence are presented for a book, a scholarly article, and a journalistic series or individual piece. Although the book award is set at $1000, the awards panel, in dividing the first book award, presented $750 to each of the award winners. The third selection made, a $500 prize for the best scholarly article, was presented to Dr. Richard K. Betts of the Brookings Institution for an article published in World Politics (October 1978) entitled "Analysis, War and De- cision: Why Intelligence Failures Are Inevitable." The panel chose not to award a prize the first year for journalistic writ- ing. The National Intelligence Study Center was established in Washington, DC in 1978 to assist scholars and others writing and conducting research about intelligence and national de- cision making, intelligence activities in a democratic society, and related subjects. Activities of the Center include biblio- graphical support, research assistance, operation of a library and reading room, publications describing efforts of national organizations to improve public understanding of in- telligence activities, and a survey of college courses on in- telligence. The Center Board and Advisory Board include a number of university professors interested in studies on intelligence, among them Professor Eugene Rostow of the Yale University Law School, Professor Lyman Kirkpatrick of Brown Universi- ty, and Dr. Jules Davids, professor of U.S. diplomatic history, Georgetown University, who was co-chairman of the awards panel. Dr. Ray S. Cline, director of studies at the Center for Strategic and International Studies, is president of the Cen- ter. NISC is interested in receiving from members of the AHA suggestions for books and other writing that might be con- sidered for the 1979 and subsequent Center awards, and in- formation on existing course materials covering intelligence activities. it is also interested in having more historians as members. In addition, it welcomes ideas on application of oral history techniques to historical aspects of intelligence, and on expansion of historical treatments of intelligence ac- tivities more generally. Inquiries about NISC and its awards program should be ad- dressed to Martin G. Cramer, Executive Director, National In- telligence Study Center, Suite 701, 91918th Street NW, Wash- ington, DC 20006. Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 Approved For Release 2009/04/28: CIA-RDP05SO062OR000501300001-2 ARTICLE APPD THE WASHINGTON POST ON PAG3__,A_/_ 14 November 1979 fiout. Studied: o Confirm Blast Near.S %!frica sd1 f ByiT~omas~1Toole~~ i ' Radioactive :,fallouthii, beeiu de lactiestlb s lrgsicret atomia~ei iq - sion~iook pi acR,In,the'_atmosphere'i M40. th ~ emtaphaCwlthi~,` r T e mOnthi - t t a l x? 4 ~ p 4iyt ,, Tice treah radioactive-debris is- deaeif that it?nt dear ezplosfee? -as lance satellite spottedf what- - was.pre