HEINE v.(Classified) - SLANDER SUIT, FEDERAL DISTRICT COURT, BALTIMORE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00001R000400190147-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: November 17, 2016
• Document Release Date: June 2, 1999
• Sequence Number: 147
• Publication Date: January 1, 1965
• Content Type: MFR

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MEMORANDUM FOR THE RECORD
SUBJECT: HEINE v. RAUS - Slander Suit, Federal District
Court, Baltimore
1. Juri RAUS is an unpaid agent of SR engaged in the
Estonian liberation movements. He is being sued by one Eerik
HEINE for slander. RAUS has declared in the presence of various
Estonian groups that DINE is a communist and a KGB agent.
Mr. RAUS was informed of HEINE{s possible Soviet connections by
a member of this Agency. There is a difference of opinion between
RAUS and the Agency as to whether RAUS was also instructed to
republish this information. It is SR's opinion that the minimum we
owe RAUS is to provide him with legal assistance through a cleared
attorney and to pay all costs occasioned by the suit. SR has not
reached the decision as to whether they will pay any judgment or
settlement resulting therefrom.
2. On 31 December 1964, meetings were held with the DD/P
and ADD/P in an effort to arrive at an Agency position with respect
to the subject as above.
3. In the meeting with ADD/P, it was explained that RAUS
had little or no chance of success so long as his association with the
U.S. Government remained classified. It was concluded that we
should seek to encourage a settlement of the case by such means as
notifying U. S. tax authorities of H1INE's possible liabilities, using
discovery techniques to expose HEINZ'* excesses, and employing
other tactics to wear down his ability and desire to prosecute. In
the event that CIA forced RAUS to settle the case, with or without a
public apology to DINE, we would have to bear the fiscal burden of
the damages.
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4. The DD/P decided that CIA should not interfere in this
suit at all. If RAUS wanted to allege that he was a CIA agent, or
received information from the CIA, we should not stop hire. If
discovery techniques were directed against the Agency, we would
resist them on legal principles. Mr. Helms was informed that the
worst that could happen to us was publicity indicating that CIA was
executing political maneuvers in the U. S. and refused to stand by
its agent when he followed orders in perpetrating this slander. It
is also possible, that the Director will be subpoenaed for testimony
byAr. Karlquist (P).
5. In light of the DD/P position, it will be necessary to
consider protective measures to conceal CIA dealings with RAUS.
RAUS's attorneys are aware that he does not know the true name of
his case officer, or do they. In order to defend this case, it may
be one of our cleared attorneys who seeks discovery against CIA.
In such case, we shall have advance warning concerning the nature
of the attempt. At present, legal authorities are being checked for
possible grounds of refusal.
6. It has not been decided whether CIA shall pay the damages
from this suit. RAUS's ability to recover indemnification in the
Court of Claims is doubtful but not impossible.
STATINTL
cc: Assistant to the Director
for Public Affairs
ADD /P
Chief /SR
SR /CI
SR /0 /AC
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