FORMER INTELLIGENCE AIDES PROFITING FROM OLD TIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09S00048R000100020084-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 16, 2011
• Sequence Number: 84
• Publication Date: December 6, 1981
• Content Type: OPEN SOURCE

T -L U i FLf L t,tu wL
ON -PAGE
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NEW YORK TIMES
6 December 1981
WASRiI GTON Pec. S - Many;for-
mer American intelligence agents have
entered into profitable. business ar-
rangements based on the extraordinary
secret access to foreign officials and to
sensitive information they gained .in'
One former agent, -for example, now
rep m.= American company in an
basked .bya-. tbe; - c ak"Intteiligepoir no .other
former agents : who=have committed
such offenses. But.for thefirst time the
'C.IA is addressing:`q ons.:about
employment : is the inteltigen
mess, issues usually aSsoC ted
vials who trade on .their experience: in
the military or Government regsila Y
used by generals and lawyers, many of=
ficials say, because the former, agents
have had unusual and some times,clanr
destine relatiomships,*ith foreign lead
,..ers and access to sensitive'.intelligence
information. IIItelligence' agents over
may-----
eien officials as it matter of course and
have violatedja etga,tsws...7Val0:or
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nections with American intelligence-
agencies after?they leave the Govern-
: ment.
Among the former agents who have
used their foreign contacts and exper-
tise for business purposes after leaving
the Government are these: vertly helped support President Mobutu.
Sese Seko's rise to power and then went
to work in Zaire as the representative of
an American metals company.
Raymond H. Close, the former C.I.A.
station chief in Saudi Arabia. After oft-
on Edwin P. Wilson's recruitment of
pilots-and mechanics from the
United States and Britain to fly and
maintain planes for the Libyan Air
:' . Force, his attempt to sell restricted
American_.computer technology to
the Soviet Union, his amassing of a
multimillion-dollar business em-
Fire,his use of Army Special Forces;
:,
rists in'troops-to train terro
links blue to1he-attempted murder
of a Libyan student in Colorado and
vial retirement in 1977, he went to work
-there_ and his numerous business inter--
ests include partnerships with former
Saudiofficials.
r trans n the key defense in- t
telligeace attache in Indonesia for nine
:years and the American with the closest
ties to the Indonesian generals who took f
power in a 1965 coup. He is the Washing
toazepresentative for Indonesia's state-
Vernon A. Walters, the former Deputy
:Directorof Central Intelligence, now the
Reagan Administration's ambassador
at large. He earned $300,000 for consult
i -lag on a potential arms sale to Morocco
before joining the Administration. <
Former and current State Depart-
ment officials who said they were
trou- bled by the foreign-policy implication
of retired intelligence agents'. contin
i-Ing to do business in foreign countri
For much of the 1960's, Mr':
ev
-was an official of the Central Intew
came Zaire. The Senate Intelligea
1960 plot by the C.I.A. to murder the
Congo leader; Patrice Lumumba, and
Mr. Lumumba was murdered in 1961:.
In 1965, with the help of Mr. Devlin
and the C.I.A., Mr. Mobutu took office,
according to former-. intelligenceoffi=
I vials. The C.LA 's - support for Mr.
Mobutu included secret financial aid.,, ,
A former agent, john Stockwell,
wrote in his book, "in search of Ere.
mies," that Mr. Devlin --shuffled new'
governments like cards, finally settling
onMobutu as President.". .:
'Excellent Contacts'. Cited
After leaving the Government in 1974;
Mr. Devlin became head of the Zaire
of- f
fice of Leon Tempelsman & Son Inc., a
New York-based metals and precious
.minerals company active in diamond)
-and mineral exploration In Zaire. Wil-
liam A. Ullman, a vice president of the!
Mr. Devlin, who had no experience;in!,., diamonds- or metals, took into account
his "excellent contacts" in Zaire
Government officials provided : ~ a
fuller picture of Mr. Devlin's contacts.
They said that President Mobutu re-1
garded Mr. Devlin, even long after het
left the Government, as the representa.
five of the United States. This gave Mr
Devlin better
connections in Zaire than
the United States ambassador there, them
;officials said..
SStephen B. Cohen, a Deputy Assistant
Lary of State in the Carter Admin-{
istration who visited Zaire in 1979,.saiid-
State Department officials there "
lieved that Devlin functioned as the truer
'representative of the United States Gov
ernment in President Mobutu's eyes. #*
Mr. Cohen added that it "was com-
monly believed by State Department of-4
ficials in Zaire that Devlin had complete;
long afterheleft the Government."
Mr. Stockwell said in his book that the 1
C.I.A. continued to use Mr. Devlin in
1975, after he left the agency. One Con-
gressional aide said that arrangement
Impact on American policy.
Former and- current State Depart-
ment officials said Mr. Devlin's extraor-
dinary access caused intelligence off)-
dais in Zaire to regard him as more im-
portantthanembassypersonnel. _._.. - a`
 . e officials said that the C.I.A. was i
.less interested than the State Depart!
ment it reducing corruption in Zaire
and that at times the agency bribed Zai-
I rians for information. Mr. Devlin's
strategic relationship with President
j Mobutu helped, on occasion, to undercut
American foreign policy objectives, the
diplomats said.
For several years Mr. Devlin's deputy
in the Zaire office of Tempelsman was
Col. John Gerassi, the former military
attache at the United States Embassy
, according to Mr. Ullman.
there
Mr. Devlin's relationship, according
to an American businessman who works
in Zaire, also gives him and his other'.
pany an unfair advantage over
businesses trying to operate in Zaire.
"I thought it was unfair to. have to
compete with people who have devel-
oped extraordinary contacts as a result
of their Government experience," said
the businessman, who requested ano.
relationships. His view was repea
Mr. Ullman said Mr. Devlin was is the
a visit by president Mobutu, but he did
not return-. repeated . telephone mes-
In the case of Mr.. Close, the onetime
station chief - in Saudi Arabia, former
Government officials say his actions,
while in the' C.I.A. and since retirement,
are often clouded In mystery.
In the first place, some think Mr-
-Close may still be working for the C.I.A.
fn some capacity, although he officially
retired in 1977. They add that a further
complicating factor is that-some Saudis.
privately share the same perception.
In addition, Mr. Close, while station
on. at least-on&occasion' aE. v
with communications, delivered by-the
United States ambassador to:Saudi Ara-
bia, the officials said. T Mforiner offi
dais recalled an incident in the early
1970's when Mr.- Close gave approval to
top Saudi officials to sell arms to Pall-
stan at the sametimetheAmerican am
bassador was denyinSpermi-ssion.
In'one -of -his: first: bnisiitess ventures
after leaving,the C.I.A.,: Mr. Close be-
I carne a panzer with Kemal Adham,'.
who in early 1979 left his post as head of
the Saudi Arabian tatelliger=.~f
according to bushiess'
in Saudi Arabia. AnoiharSaudi
partner of Mr.. Closets Issas Kabbani,I
another former Saudi:offlcsl-.
Since 1978, . a . eampaay is which Mr.~
Close and Mr. -Kabbani are'prtnciPl
has been the Saudi Arabian reflrwenla'!
tive for Cesco chemicals International!
Inc., a Louisiana-based-Company thatl'
sells an oilfield drilling lubricant, ac-i :
ocrner of Cesco International. an affili-
ate of Cesco Chemicals, said Mr. Cosa
bad been hired because he enabled
Cesco officials ,to get in the front door"
with Saud 'officials. Mr. Matlock said
because Mr- Close had "gained the
can do things with them" beyond .the
Compensation Not Divulges
Cesco officials declined to divulge Mr.
Close's compensation, but other Ameri-
cans- who do business in Saudi Arabia
thought his fees were quite lucrative.
They cited, for example, Mr. Close's
quotation to an American company
seeking to land a contract to manage an
airport In Saudi Arabia: $200,000 ayear
for 10 years to represent the company,
plus an additional $400,000 a Year for the
life of the contract should the compare
get the concession.
Several telephone calls were made to
Mr. Close's listed number in Saudi Ara-
bia, but no one answered the phone.
State Department officials cited two
Mr. Close, in which the current business
activities of former C.I.A. station chiefs
have raised concern in diplomatic cir-
the former chief In Thailand. After leav-
ing the agency in 1979, officials said, he
went to work representing companies
American officials involved in Thai af-
fairs. said they were concerned about
Mr. Arnold's continued dealings with
top level Thai officials. Mr. Arnold ap-
parently lives in the Washington area,
telep one
A Flliplno Connection
Natzke, who retired in 1979 after serving
as station chief in the Philippines. He
'went to work for Lucio Tan, a wealthy
Philippine businessman involved in
banking and trade, according to Gov-
State Department officials said Mr.
Natzke's affiliation with Mr. Tan was.
perceived by the Filipinos as giving-the
.'Tan: interests an indelible association
with the United States:.One. result, they
said, is that President Ferdinand E:
Marcos thinks the C.I.A. wants to pro.
tect the Tan interests.:_ *- A
Philippines to California to represen
ade to a telephone listed in his name ;;a
but nn one answered...,.:-.
cials who dealt in secrecy in their intelli
public record since they retired. from the.
agency.. 4-
'.he Mr. Benson said in an interview was hired in' 1973, after leaving the!
y, to bead-the Washington office of
Arni -
Pertamina, Indonesia's state.owned oil
company. He approached General Ibnul
Sutowo, then head of Pe amt a, who,!
upon hiring Mr. Benson, told him, "We
need an office in Washington, we need;
someone we know.well,..we-need some;.
one who knows Washington," Mr..Ben,,
son said. ?
In his more than nine years as a mill-11-
tary attache in Indonesia, Mr. Benson
became very close to the top Indonesian
generals who, with covert American)
support, took power in 1965. He also
served as the pentagon's expert on Indo-i
nesian affairs. When asked if he got his!
private job as a result of his,Gavern
lutely, that's the only reason they hiredi
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Registered as an Agent
foreign agent "four or five years ago" to
be sale, since "it's sort of a gray area."
Records on file with the Justice Depart-
ment show that he registered as a for-
eign agent for Pertamina and an affili-!
ate in December, 1980, and that an'
amended statement'to "correct a deli-I
ciency" in the initial one was filed last.,
July. Among the filings are a 1977 con
suiting contract with the Pertamina af-
filiate, and a 1980 letter showing Mr.
Benson's pay of $15,000 a month.
In September, 1980, two months be-
fore Mr. Benson registered as a foreign
agent, an affidavit was filed in the
United States Court of Appeals for the
District of Columbia noting some of Mr.
Benson's lobbying activities during the
middle 1970's for Pertamina. The court
case involved importation of liquefied
natural gas from Indonesia, a matter in
which Mr. Benson says he was actively
Mr. Walters's private attempts to sell
arms to morocco came to' light earlier
this year, when he filed a disclosure
statement in conjunction with his nomi-
nation forhis State Department post.
. John R. McLane, the president of En-
vironmental Energy Systems Inc., the
company that paid Mr. Walters $300,000
for unsuccessful efforts to sell tanks to
Morocco, said in an interview that the
company hired Mr. Walters because of
his access to important figures in Mo-
rocco.
"We went to him because he had. the
I connections, he knew the King of Moroc-
co, " Mr. McLane said.
- One of Mr. Walters's last missions in
the C.I.A. was a trip in late 1975 to Spain,
where in meetings with King Hassan II
of Morocco and Spanish officials he con-
vinced Spain to give up control of West-
ern Sahara, a Spanish colony in Africa
-long sought by Morocco, according to
When asked in 1979 by Africa News,
an American newsletter on African af-
fairs, about the secret 1975 talks, Mr.
Walters reportedly declined to discuss
the details,. saying, ."It would look like
the King 'of Morocco- and the King of
Spain are pawns of the..United-States,
and that wouldn't be in anybody's inter-,
esL"
The State Department said Mr. Wal-
ters was out of the country. He did not
respond to telephone messages left with
,
his office here.
Richard Helms, the former directorof
the C.I.A:, said in an interview that the
issue of revolving-door activities on the
. of retired agents had not bey a~
part
problem during his tenure. He added!
that it was "against the American tradi
lion" to place prohibitions on the privat
business practices of former intelli
,XontrastWith Foreign Mores.
M. Helms also contrasted what h
called America's "ethic" about con-
- flicts of interest with foreign mores,
which he said hold "the more conflict
the better.,,
Mr. Helms now earns a living advis-
ing corporations about doing business
overseas. The name of the company is
Safeer, the Persian word for ambassa-
or.
Other intelligence officials say thatit
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roce
,..r . in ?refit in nrivate life.rIII , eral, prohibit or limit former Govern- Kermit Roosevelt_ a fnrrnpr r t A .,M
. ~ hom their Government experiences. ~LP men, empiuyetz arum rrprs-*enun8 any. ~ cial who personally arranged the 1953'
The spportunities for public discus one trying to influence their former de- coup that brought the shah of Iran to
sloe of conflicts involving former intelli- ; partment or agency. power, used his C.I.A. erection on
genes agents are few. Since the identi Jackson Walter, director of the Of behalf of the Northrop Corporation in
lice of Government Ethics, said a law-
ties of C.I.A. agents, eves after they re- C.IA, office of coon- Iran and the nter a East,
tire, are not trade public, it is often diffl- Yer in the general Letters written by Mr: Roosevelt and
cult to follow their entry into. private sel had told him that the agency had released by the committee repeated
life. Other former officials are subject "never found a violation" of the ethics
references to ..my friends in the C.I.A."
to public scrutiny because their ideati- laws. But Mr. Walter said the agency who were keeping him apprised of Nor-..
ties are not kept secret. lawyer told him the agency gives"daily throo s competition.
Congress is considering a bill that advice" to former agents on revolving- But the Senate Comittee failed to
would inhibit still further public discus- door regulations.
make public all its files relating to the
has undertaken a
h th
Alth
til
oug
e agency
activities of former agents, according to.
lig
agents-
sloe of itel former Senate aides, and no public as
n o itel revolving-d=- question, often an detailed review of its internal guidelines
cussions of the military-in-: in the wake of disclosures about Mr. Wil- lion was taken to address the issue.
issue in dustrial co discussio is governed by vari- son and Mr. Terpil, intelligence officials The House Select Committee on Intel-
said it was unlikely that changes in the iigp
ous Federal statutes. including criminal C.I.A. employment contract would re-. e"nco' f currently r, has studying the nto the
affair.
has not
yes
looked into
laws enacted in 1952 and more stringent
the
salt from that review. general
issue of
conflict
s of
interest
laws passed in 19?8under the Ethics is
by
on conflict of Interest axe ldanncai W" The officials said, however, that the
l
those in the 1978 ad.' C.I.A. officia
s ?I . agency's review had led to _c onsidera.
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