Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 16, 2016
Document Release Date: 
May 31, 2005
Sequence Number: 
Case Number: 
Publication Date: 
January 3, 1973
Content Type: 
PDF icon CIA-RDP75B00380R000300050018-9.pdf1.51 MB
40t Approved For Release 2005/06/06 : CIA-RDP751309fQR000300050018-9 THE WASHINGTON POST DATE "? IcKel 3 PAGE f.;1 The Washington Merry-Go-Round THE WASHINGTON POST Wednesday, ar .3,1973 B 15 Publicity Undermines Dictators By Jack Anderson Tan_ hide its grajaanadgi d' ? h- ... ?overnment e em laarzazta details under t e saarzczatapIP. But the government has now admitted, in at least one case, that publicity was the best policy. The admission, of course, was classified "Se- cret." pie vase involves Para- Dietater Allredo troe. sugir,..ayja_laLlgreu dri a ound $11 million a year from thI s rvzgs. Ap- parently, this hasn't been enough to keep his generals in starched uniforms and other essentials. Tal-sunDle- bil.ijaszas nar- eled smugglizg?ffan- who nto t e veins of Amimar.i.a.als-s.theea_aggacts. Stroessner's smuggling op- erations have been no secret to our longtime Ambassador to Paraguay, Raymond Ylitalo. '11;ite dvtail? hue also been jcncnun to the Ceritrki Inteili- ,p-pnrp Agency and the Bureau eifi.liaraatja....1,111,-UALIALPus The taxpayers who help subsidize Stroessner were kept in the dark, however, until we nakiiitral?rarePtiglilaa-al'a61- prP CIA report last April 22. . irk ? 0.161414 I I ? t ill AI nin?nr 1111 1 ri o 1.1:11,21.11;6.21Atate.5.11,a(itskv." It. nlsn added: "There - IraLlent Stroessner is op- tiagaraint.2.12.11..iare anici is willing to take action." szr......juatsidi.igragaMps, tnir ihe IrrA desrnibed his ti alit 1 ittl p diAtatnrchin as Hprnin rrossroads of Smith A rnpri Pa ," that some of his most trusted aides al- legedly were deep In the nar- cotics traffic and that be had refused to extradite the no- torious, French-born heroin kingpin, Auguste Ricord, to the U.S. to face drug charges. Our column, widely quoted throughout Latin America, up- set Stroessner. He sent word to us through his Ambassador to Washington, Dr. Roque Avilla, that he was surprised at the allegations and asked for the names of those behind Paraguay's drug trade. Culprits Named We supplied Avilla with names and details implicating a dozen of Stroessner's closest associates, including his trusted chief of investigative police, Pastor Coronel. We also continued to raise questions about Ricord, known in narcotics circles as "El Commandante," whom Stroes- sner had-ensconced in a color- ful, comfortable jail cell with a private bath and a nearby telephone where he could keep in touch with his drug lhisi- ness. At one point, a State De- partment offical called us to warn that if we wrote about Ricord, it could upset the deli- cate negotiations and prevent his return to the U.S. We contended that public- ity would abet not prevent Ricord's extradition and that, in any case, the public was en- titled to know what was hap- pening. So we went ahead with our stories. Other news- men also wrote about the "Paraguayan Connection," as Ricord was labeled. The final result: Ricord was extradited to the U.S., where he was convicted. He now faces a long prison term. Ambassa- dor Ylitalo was sacked, and Paraguay appears to be trying to stem the dope traffic. Belatedly, the General Ac- counting Office, in a report on world drug trafficking, ha S giv- en the press the credit for this turnabout. "The American Embassy," states the GAO study, "has reported that the Government of Paraguay's concern about illicit international trafficking has increased recently because of unfavorable press reports about Paraguay's role as a smuggling center. "Publicity regarding U.S. ef- forts to extradite (Ricord) has also increased the Government of Paraguay's concern . . . The fear of adverse publicity . . has caused Paraguay to take some steps to control narcotics." The embassy messages giving credit to the press and the GAO report praising the ef- fects of publ city, ironically, are all heavil classified. In- deed, every copy of the secret GAO report has been number- ed to restrict its circulation and to prevem any publicity. Pentagon Iipeline Phony Figures---The Penta- gon put out m sleading figures on the number of B-52 bombers shot down ov I' Hanoi. Some bombers wen badly hit, ac- cording to secret military dis- patches, but made it out to sea before they e ime down. The Pentagon, not wishing the Communists o know about downings they may have been unsure of, dit not report all the B-52s lost in the sea. The Pentagon also bas said nothing about seriously damaged B-52s that managed to limp back to base but have been effectively put out of acti m. We have not seen the complete figures on the B-52 losses, but our Penta- gon sources tell us that only about two of every three B-52s shot down we e announced. Vietnam Ow look?ageu1-f4n- try rt i nn s Pni,gammiaatmegrOM fliatialyagigte that the orth r new siege of figiiting. by im- nists by ? in Paris and, er- 0 1973, United Peature Syndicate Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 iSt%ittok Approved For Release 2005/06/06 : CIA-RDP75600 fiDR THE WASHINGTON POST DATE The Washington Merry-Go-Round 00f0018-9 I' PAGE THE WASHINGTON POST Tuesday. F.eb. P173 C Usable Copters Consigned to Scrap By Jack Anderson Hundreds of helicopters, most of them perfectly air- worthy, have been consigned to the scrap heap at Davis- Monthan All Force Base in Tucson; Ariz., while law en- forcement agencies around the country are paying through the nose for new po- lice helicopters. The police units, with few exceptions, haven't been able to cut through the red tape to acquire surplus, military chop- pers. This is forcing them to buy new helicopters for $60,- 000 to $100,000 apiece when they could refurbish an old battle chopper for a few thousand' dollars. There is evidence, more- over that-the Federal Aviation Administration is cooperating with the big aircraft manu- facturers to keep the bargain surplus helicopters out of po- lice hands. Here's how they work it: The FAA won't issue ? cer- tificates of airivorthiness for the surplus choppers unless the manufacturers issue new data? plates. Bell Helicopter, for example, explains that it cannot determine without a total factory overhaul whether a chopper still meets Bell' specifications. Bell won't risk damage claims, therefore, by issuing a data plate. Without this, the FAA won't certify the air- craft. And insurance com- panies won't grant reasonable liability rates without FAA certification. 0? Rep. Ogden Reid (D-N. V.) drug firm of Merck, Sharp ilatagt46,,T4e4,iompr- has suggested in a private let- ?and Dohme to become deputy thea.vlia.v.LLS,..114-11igetweshiatd- ter to FAA Administrator director of the Bureau of John Shaffer that there is a ? Drugs. She acknowledged to simple solution. "I have us that she set to work in her checked with the services in- volved and have been as- sured," he wrote, "that the log history of each helicopter is readily available and that either the manufacturer or the FAA could easily deter- mine whether the craft is air- worthy from this and some personal inspection . . Reid suggests suspiciously that FAA's refusal to issue the certificates is based on a technicality which seems de- signed to protect the market for new helicopters rather than the public interest." Conflict of Interest An unpublished study ex- poses the cozy relationship between the Food and Drug Administration and the busi- nesses it is supposed to over- see. Such commercial giants as Swift and Company; Smith, Kline and French; and Libby, McNeil and Libby have been able to place top executives in watchdog posts inside the agency. The study, by the Center for Science in the Public Interest, reveals that some 22 of the FDA's top 54 officials have held key positions in FDA- regulated Industries or front organizations which cater to theie Industrie. A typical case: Or. Marion Finkel came from the large; nO4%PAD 14' Q'.A1PAt141Pqiat- EgiltUjyog4rrite.r-w,Qf V1.1411iinf-'5e-sin.1344 Q9a,44,ipt Merck drugs for marketing ii.- tirairsjaril censes. Three of the Merck JA441.1,iguai.4.11,-,Y.:4.4261434-0.-. drugs were subsequently ap- proved. Dr. Ogden Johnson, head of FDA's Division of Nutrition, came from A. E. Staly Manu- facturing Co., an Illinois soy product producer, which is actively researching new soy food. At the FDA laboratories under Johnson's control the FDA currently conducts tests on the nutritional value of soy meal and soy protein. Other FDA officials intend to return to the drug and food industries when they leave the government. Typical is Dr. Vir- gil Wodicka who formerl worked for Hunt-Wesson, Lib- by and Ralston Purina, but is now FDA's director of the Bureau of Foods. He has mad no bones about his plans to return to the industry whe his government service is com- pleted. Even the most nobl of men might avoid doing bat- tle with a corporation whic holds the purse strings to his later employment. Others mor inclined to go to the well with big business might even be s duced by what FDA insiders call "the deferred bribe." I.F.141p4sAulf mitatialS4fl14 I!pnyinnals_t and reeon- taalacvu. 4,111Yey bee_Litte- tee/2.,.. tiq to China's T.J4.91.2 *4:4e-4eams itar.,.,?,?,as., lull pliz_Itz.. six nIgatjasgilie. .1+ tratiagzaisi cjaz42,Z,I,ar.. jagt,were sent b.).iihtweight SI nip Ja.leJlt-CD?Ziaixt If.!/, A- otaart, arid.. re ay t kt,e134412p, 4134.(art.ta.cra lif'v,quariez at y.t1144A,L1,..14-? Sea Saga ? ret intelli- ence reports o ? .ribe vvhat as probably lie last nava1 ction of the tetnam war. Four missile boa 3. each load- ed with two dead .7 '??TYX "les, slipped out d China ai14 crept down the ef a...tline, care: ully staying in i ti-nese terri, orial waters until Ilivy reached some small Non! ? ietnamese slangs north e they tried to hid :Among the islands but faile F to eseape detection. On i ,N ember American A-7 fig det?-homberd !struck the boats ti their hid,: ;ing places, sinki ti one and. Idamaging two. Th ? tourth gob away. ? ,..19;.;. Un.,i '',t , - ndirnfro igenyx _twins _Seczet_AltatIL:mai-quuit." ae troops, atl acking ? iii,.. bFalion Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 VICO..., At Approved For Release 2005/06/06 : CIA-RDP75130040M00300115i018-9 THE WASHING TON POST DATEIL, int 132,GE ri The Washington Merry-Go-Round THE WASHINGTON POST Thursday, M tr.15, 1973 F IT Europe Is Angry Over Money Crisis By Jack Anderson President Nixon's failure to intervene directly to check the International monetary crisis last week has caused bitter- ness and anger in the chancer- ies of Western Europe. The secret diplomatic dis- patches and intelligence re- ports from Europe indicate that feelings against the U.S. haven't run so high since the end of World War II. The President's handling of the monetary mess, in the opinion of most European leaders, threatens to plunge the world into a disastrous trade war. The result, they fear, could be a world depression. U.S., ac- gence ? geric3r,m.ggeiing tk greatest international monetary Crlira since ihe 1ENZIE0=1121023:=2" jple. that West Qerman a secret _session with his ex ed: "Inc f hair %Qua. The cause of the crisis was a sudden flood of dollars into the exchanges market. This forced European countries, particularly West Germany, to buy up dollars in order to keep their own currency sta- ble. Twice now, these govern- ments have been caught with their vaults full of dollars when President Nixon has de- valued the dollar, thus stick- ing them with huge losses. The problem, somewhat over- simplified, is this: The dol- lar has been the backbone of the world monetary system for the past quarter century Western Europe has depended upon the U.S. to bolster the dollar. But Washington took no firm action to halt the re- cent run on the dollar. The President's economic czar, Treasury Secretary George Shultz, came to a Paris mone- tary conference without in- structions. He merely listen- ed, with seeming detachment. Brandt thought his attitude was senseless, but France's President Georges Pompidou considered it suspicious. C.TA rerun-fed that _Pqmoi u, in__urivate. was g.utter' ? darkiv about U.S. economic UoaRer.iRligrg- As Pomnidou aecncd- ' to tlingLALS,JIL the TI S. as tia sp to dum ? its dollars on -? ?? ???-? MR Irneficiaries. Pompidoue- liwa'xn.lh,grigan 0,24Lorm-igns. He suspects they have been selling dollars for European currencies, which have be- come more valuable as the dollar has weakened. Now he expects the American conglom- erates to use this money to begin a new wave of invest- ments in Europe. The diplomatic repercus- sions have been so serious ?that the President's foreign policy czar, Henry Ki,ssiuge? r,d is staffing up for a crash stUdY of the monetary crisis. Ile wants to have a voice in set- ting monetary policy, with a view to its impact upon U.S.- European relations. Washington Whirl Tax Dodge Award?Georgia Pacific, the giant lumber and paper goods corporation, has been selected for us by Fred Harris' Tax Action Campaign as Tax Avoider of the .Week. Georgia Pacific has been ex- traordinarily successful at chopping down its tax base. According to Harris, the tax laws, as they apply to most businesses, would have taken 48 per cent of Georgia Pacif- ic's 1971 taxable profit of $117,600,000. These timber wolves, however, paid an 'ef- fective tax rate of only 11.3 per cent, through a long list of special tax exemptions. Most startling: profits from tree sales are treated as capital gains rather than ordinary in- come. Manufacturers of recy- cled paper, deprived of similar advantages, can't compete with Georgia 'Pacific's timber cutting cost cutting. Thus, the government's largess to Geor- gia Pacific makes all the talk about ecology as valuable as sawdust. Tax Action Cam- paign will confront the most flagrant tax evaders each week with leafletting and pub- lic demonstrations. Presidential Goof??Many troubled diplomats at the State Department, familiar with the full details of the shooting Of Ambassador Cleo Noel and deputy George Moore in I- hartoum, believe they might have been saved if President Nixon had kept his mouth shut. Shortly after he issued his lough statement that "we wii I not pay black- mail," the two men were exe- cuted by the Black September terrorists. Pi eviously the kid- nappers had ihown signs of re- lenting. Tho.:e who privately criticize the President agree with his stahd against black- mail. They simply felt it was unnecessary t anatagonize the kidnaper ; by proclaiming It to the worbi before every ef- fort had beer made to negoti- ate their reit ase. Deputy Un- der Secretary William Macom- ber, who recently negotiated the release 09 another kidnap- ped Ambassador, Clinton Knox, in Hall, never got a chance to try his skill on the Black Septe her terrorists who held Noe and Moore. Bank Refot n ? Two years ago, we reported that 124 members of Congress had been granted loans at special low-interest r des by the Na- tional Bank of Washington. This is the ba Ar owned by the United Mine Workers, which was then col trolled by cor- rupt leaders. Hut the Mine Workers have now thrown out the old crowd and installed a man from tht mines, Arnold Miller, as union president. We are pleased to report that ha has quietly instructed the bank to cut out, special bar- gain loans for iongressmen. (c) 1973 United Ikature Syndicate Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 .47-?b2.0e* Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 0 THE WASHINGTON POST DATE 21 iCTS PA 37 30 3 The Washington Merry-Go-Round THE WASHINGTON POST Tuesday, Man h 27. IP" B'15 Move Seen to Politicize CIA Analysis By Jack Anderson Qur sources inside the Cen- trALIntelliggAce Agency are alarmed over an apnargnt move to politi ? -Ill. genre estimates an& -S t1& The The craggy new CIA chief, James Schlesinger, is shaking up the Office of National Esti- mates, which produces the supersecret studies of world developments. Each Septem- ber, for instance, this office completes a painstaking sur- vey of Soviet capabilities and intentions. put the, rrp aitim aos bannitv. have often ...mutilated mah_griatuLzazanls....nawn nongepts?Sohlasizgats_aluae- 1414.111=fart.,--ho-heall-inta- preted within the CIA. as in attempt to make_Aho_latallt- genoe analyses conform with thP President's _thinking. The President's displeasure with the CIA has been no se- cret inside the agency. In 1971, he issued a detailed "decision memorandum," complaining about inadequate intelligence and calling for? changes. He gave his national security ad- viser, Henry A. Kissinger, new power to evaluate intelligence and instructed then CIA direc- tor Richard Helms to make the estimating-analyzing op- eration more responsive to White House needs. Some of the reforms the President sought, to be sure, were intended to reduce run- away costs and to increase effi- ciency. But the cool, compe- tent Helms was reluctant to adopt changes that might make the CIA less professional and more political. He believed there should be a diversity, not conformity, of intelligence activities. He thought diverse views should be funneled to the White House as a check upon the rival intelligence services. If the ,President should receive only an intelligence consensus and this should turn out to be wrong, Helms feared, it could be disastrous for the nation. CIA's 'Liberal' Taint But the conservatives around Mr. Nixon persuaded him that the CIA had a liberal taint and that the Office of National Estimates, in particular, took a dovish view of the Vietnam war. It's true the CIA warned in 1966-67 that Communist strength was almost double what the Joint Chiefs of Staff estimated. Sure enough the Communists struck with unex- pected power during the 1988 Tet holidays. It's true the CIA claimed that the bombing of North Vietnam had not disrupted the flow of supplies down the in- filtration routes into the south. Sure enough, the Com- munists launched an unex- pected, powerful offensive in March, 1972. It's true the CIA warned that the mining of Haiphong harbor and the renewed bomb- ing of the north wouldn't keep the North Vietnamese forces from getting all the supplies they needed. This estimate, too, was subsequently veri- fied. Of -course, the CIA wasn't always right. It badly under- estimated the flow of Commu- nist supplies through the Cam- bodian port of SihanoukVille and, therefore, discounted the need for invading Cambodia. The CIA also upset the White House by disputing then Defense Secretary Mel- vin Laird's statement to Con- gress in 1969 that the Soviets had succeeded in installing multiple warheads on the giant SS-9 missile, each war- head capable of hitting an in- dependent target. The White House wanted Congress to be- lieve Laird and to vote for more defense funds. In the fiitu,t-e hizu.rj aRlagara?thalt. the CIA .121?kc Joect liltely +n d4V.SOP With thp White- House. is intooriori to redpee un- neeesgary costs remove the deadwood and increase effi- riancy?in...nazt?this..auatisgibt- eigy_iLtr_ue. Washington Whirl ITT Again?The sprawling ITT conglomerate, already in hot water with Congress over its dealings in Chile, has a new problem closer to home. ITT promised the Securities and Exchange Commission to tell Its prospectiv mutual funds customers about its legal diffi- culties. The tiisclosures were supposed to have gone out in an amended pimphlet, dealing with ITT's Hamilton Fund, on Jan. 19. We sent a representa- tive to ITT's mutual fund of- fice in nearby Virginia to pick up copies. W found it still doesn't warn I triers about the legal problem At Hamilton's headquarters in Denver, a spokesman sad any reneging on the promke to SEC must be "a 'failure ii he field."' Message to Muskie ,? The presidents of iteneral Motors, Ford and Chr ister have paid separate, peva te calls on Sen. Ed Muskie (D-Maine) to enlist his support fcr delaying the 1975 deadline vhen anti-pollu- tion devices mast be installed on automobit-s Democratic National Chsirman Robert Strauss, whom :my firm rep- resents Chrysh r, also spoke to Muskie about I- is meeting with Chrysler's Pre dent John Ric- cardo. Muskie Laid us that Strauss asked no favors but merely mentiunt-d the mm- ing. In any case, the visits from the auto tycoons didn't Impress Muskk, As chairman of the Senate Subcommittee on Air and lk ater Pollution, he is preparin if to blast the auto manufactorers 'for not moving faster to meet the anti-pollution s ndards. 0 1973, United P' lizare Syndicate Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 THE WASHINGTON POST DATE 6A-fic '7 .7) PAGE such as trade unions, farmer EPOW4t- stutteut acelilats au 0 cO111- munfeation media. U.S. Helped Beat Allende in 1964 By Laurence Stern Washington Post Staff Writer Major intervention by the Central Intelligtnce Agency ancrihe_ Slate Department- helped to Meat ?ocialist Sa1vaLkr LUend in the 1964 eleetinJor president of Chilp _accatthug knowle able offi- cial comes. American corporate and governmental involvement against Allende's successful candidacy in 1970 has been the controversial focus of a Senate Foreign Re- lations subcommittee investigation into the activities of U.S. multinational companies abroad. .111{ erican sunnort for Christian Democrat Eduardo Frei a ainst ears earli o 70 rmer intiaggnmnfficial deeply involved in the l964 effort. Ugto no rotllion in ILS. _funds renortedly were in- nianyAs 100 U.S. personnel. The story of the American campaign, early in the Ji:Ihnson administration, to prevent the first Marxist government from coming to power by constitutional means in the Western Hemisphere was pieced to- gether from the accounts of officials who participated in the actions and policies of that period. Cold war theology lingered, and the shock of Fidel Castro's seizure of power in Cuba was441reverberat- ing in Washington. "No more Fidei., vas the guide- See CIA, Al2, Cal. 1 - post of American foreign policy in Latin Atherica ui der the .?Ilianee for Prog- rest. Washington's romantic zest for political engage- ment in the Third World had not yet been dimmed by the inconclusive agonies of the Vietnamese war. "U.S. government inter- vention in Chile in 1964 was blatant and almost obscene," said one strategically placed intelligence officer at the time. "We were shipping people off right a n d left, mainly State Department. but also CIA with all sorts of covers." ? ? - if the key figures in tb?j7.7614-ei?T?TreT?iliga_luit's C4 Nre?Sr.. the redoolit - Cold vira.m_yr al. He directed the oTie-ff programs to neutralize Com- munist influence in import ant opinion-molding sectors 41 .leasz_Aue_ga ju 414_124CIA money. the Tntj_ 4unaLilexalaunaa- 101se Ia?Cagapjaja_ULAWagiglie Chilean neasant oraaniza- er official who was responsible ii _t term! assistanc to ?ile from tie ? gency or Igternational Develonmen,i, One former member of the IDF board, who quit when he discovered it was financed by the CIA, said: "Some of us had suspected for a long time that the foundation was subsidized by the agency. Then it fi- nally surfaced, and it was impossible to continue serv- ing on it. Nonetheless, what they were doing was conso- nant with President Kenne- dy's policies in the alliance --political development." Dab..L2141161ah.11.1S-4t41-111 existence a:thou h its cA funding was termthatedIt 41,122.4.4impssi ja_zaLip- vaulations. Covert financing was ar- ranged for a newspaper friendly to the political in- terests of Christian Demo- crat Frei. "The layout was magnificent. The photo- graphs were superb. It was a Madison Avenue product far above the standards of chilean publications," re- called another State Depart- ment veteran of the cam- "ignne. O former hieb-ranking 41.12.1011LL-kiid?C101,..aagra- tiipnq St the time were e Kep- pedy letter issiecjby the late President after the Bay of.agiLgelara.ln.141111-The letter designated ambassa- dors as the primary author- ity for all U.S. operations within their countries. remember discovering one operation within my last week of service in Chile that I didn't know about. The boys in the back room told me it was 'deep cover' and told them; *You guys were supposed to tell me everything,' " the former diplomat reminisced. AS me lel election cam- paign untaitd in Chile, the American it telligence and diplomatic establishments were divii cit from within over whetner to support Frei or a riore conservative candidate, Sen. Julio Duran. CIA's traditional line or- ganization, centered in the Western I lemisphere divi- sion and working through the traditional station chief structure, lavored Duran in- itially. So did then Ambassa- dor Charles Cole and the bulk of top State Depart- ment opin,on. The remain- ing Kenne, ii administration poUr,5,maltr t-- , on the other g_11! ha:. th tic PO! 11.1 Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 Approved For Release 2005/06/06 :CIVARIS00380R000300050018-9 NEW YORK TIMES DATE 11 PAGE Zit th.,;_gei,eral arguact tuat GENERAL FAVORS s ale n neganitntion of D.I.A. I NTELLIG and civihan 40- ENCE t? 6 ? S 71e: ar=ency :arici-The He Charges Duplication By Civilians and the Military By WILLIAM BEECHER spectral to The New 'York Thes WASHINGTON, April 10 ? - fisz...wlar in an unofficial .? A1M.Y.-i=a1.--has-aallealL.for .. ses n gen- ziessiUireats-facine thc United 2,? ?S,ELes. The proposal, by Maj. Gen. Daniel 0. Graham, currently holding a high post with the Defense Intelligence Agency, Vaaareri in some _news reaurls.-taay .2c probably ore- 1111Staatial-Cat th'ile"entrofal ve 1=3-13za.Paring in4ap- .112r.e,ats. sition presumably tile fact n- Q, a tion at the C.I.A. Penta :o 6 trials ? ? c rntu the and others m t twice o the new. sulang_tiwa alaines gteraln_prospect. Appointed Expected Soon General Graham, now deputy director for estimates of D.I.A., is reportedly slated soon to chair an interagency committee 9. under Dr. James R. Schlesinger, the new Director of Central Intelligence. Writing in the current issue of Army Magazine, a publica- tion of the Association of the - United States Army, Jap...bianzd ;Waal ettleesand. 'n- scare S. oil III ? ? creastngly to ivilian inte ii- ? -nce a. enc ke -the C.I.A. .- - ?ea m s Zaj.rpon of Intelligence in-Re- ,: vgrrh. "The trend toward independ- ent analysis has been gathering over the past 10 years, and there are now anajytical staffs in the civilian intelligence corn- , ? munity paralleling those of the ? Defense Intelligence Agency on almost every military intelli- gence subject," the article said. __6ce nit realizaof tatters 1.41242.a_11 no ply, to bend intelli- gence to support their pet proj- has improved the play ategic_military_estimates"Th. ere was a timeM-Mid, . "when thr rule-of-thumb for , acceptability of threat esti- -,7tritttes among planners was 'the bigger thebetter.' Intelligen ?eStimates whichfailed to ma enemy threats in-both sum ? and detail were lifelv to draw ? fire as 'wishful thinking.' More often than not, mill- '7tary intelligence people came 't to heel under such criticism and stumped bard for the 'worst :case' view. ThOse old attitudes are waning now, and simplistic s' demands for the scariest possi- ble threat estimates are much less prevalent among users. Some hard lessons have been learned." As an example of how such "worst case" estimates may be counter - productim._ 1114-.-oeml Graham said that. *Ise eCth-. text of negotiatio 4tera- tegic arms limitatka. Soviet Union. there* real possibility ot actual, friendly enemy `capabilitie only on paper in or iifoiri Intel- ligence estimates." Dut with the improvements ut31,1nwe nd Apttjtede filar General Gra am '4 lr1 h(Pfl made, he 1 i "the's ee- tsinn o in r1Pcrribinst 4,.1443.mat.&. of natirinal 5eCu- e concluded, "While there will always be a legitimate reason for independent judge- ments from outside (the De:: fense Department) on issues of critical importance to national decision-makers, there is no -longer a need, in my judgement, to duplicate D.I.A.'s efforts in other agencies." a ? a entaeon sources said that owit&IINg. Docemter, te ore e e mall& bfrriTille "Ty-Thandiap. Jerry W. Friedhebn, who was noMinated today to become As- sigant Secretary of Defense tcrr public affairs, said that the article represented the Penta- gon's views. But he added that "a. little bit of duplication is; a good thing." Qther-afficiaLs, an out I tha__Pentagon. said that te C'tda and other agencieeld I - ilne,j,t_iteinde?end'eni : I .1 s which alOnt-ff the " II. nig ? ft .344.,audied by t e 'Cut- a er Intelligence Board each fall. Proxmire Urges Cuts WASHINGTON, April 10 (AP) ?Senator alliam Proxmire I- es I. . Mil A a n sale ?to.ay that the United Sta er ence communit em p verj about 14 0 person, anZ spent $6.2-billion eacl year. Tenewing his call for drastil cuts in the cost of Americat spying and covert activitie. overseas, hr urged Dr. Schles inger the Central Intelliggj187 thrector to make publilif Ga ? ant' entire intelligen b :e w ic as always 6e.ei e e said that he believed tha. the intelligence establishmenH had swollen out of proportioi j to -national defense needs. Approved For Release 2005/06/06: CIA-RDP75600380R000300050018-9 Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 THE WASHINGTON POST DATE (4?Alpt.:13 PA The Washington Merry-Go-Round 111 WASHINGTON POST Saturday. April 14.1973 B l CIA-Inspired Tibet Raids Wind Down By Jack Anderson IA--maantaniaus.--Wapal, tcast bloody war is winding AilAr,W.L.1=51-Inasarm_....and dOwn. The warring tribesmen alld the CentrWi e jgance agency. which reernited_them, are losing interest jn the ad- After the fleece-clad Red Chinese legions crushed a re- volt in Tibet in 1959, the fierc- est of the Tibetan clans fled on wiry ponies into the high fastness of Nepal. MA Av.+. 510,.,1?...?0??4d the confidence of the moup- tfightersa...ifaiwy- pas_ar......wardats4,...and_jaegari or.ganuinging_lhem__agaiilst theXhinpap Tn_ the cloud-cap- ned, iu_,gcg_LIsof Mustang and 14cans,...theahamnagayeas- ith American sad ir es, rQuip- molt. en, out of the _craggy highlands. they swooped down Chinese military encamp- , ments in Tibet. sruntjp .rommimieations and stealjpg . This distressed the Nepalese authorities, who never authorized the raids and feared Chinese retaliation. We spoke to sources who were invited to participate in a raid on Chinese army facili- ties in Tibet. gence agents were used to par- achute American supplies to the Khampas' mountain biv- ouacs. The bright orange sup- ply parachutes were converted into shirts by the Khampas and quickly became a "Red Badge of Courage" in Tibetan refugee restaurants in Khat- mandu. But now the Tibetan refu- gees, when they gather in the restaurants for marijuana stew and cakes, are forlorn. The American aid is drying up, and the Khampas have to depend on the penurious In- dian intelligence services for supplies. This has so weak- ened them that the Nepal gov- ernment, branding them "bandits," has been able to move them from the border areas. Now when the tribes- men feel war-like, they prey on peasants instead of Chinese soldiers. .1111iL-113.9--11--iaraWaY War Dared up and died down. vir- tually unknown to The Alnifi- ? eo le,7viose dollars sup- and whose Segget ageni.S.P...n.CM1r-aggd it Washington Whirl Campaign Finances--We re- cently reported that most of the Nixon scandals, from ITT to Watergate, were outgrowths of the 1972 presidential cam- paign and the corruptive method of financing politics in this country. We suggested that the tax he learned hig Enrilish and WAR trainprl guerrata_taglieLln_jjje Unite41 tes. they earmarked a dollar of their taxes for the political party of their choice. They can do this simply by filling out the Presidential Election Cam- paign Statement, Form 4875. But a spot check by IRS dis- closed that only two of 29 em- ployees, assigned to assist tax- payers with their returns, bothered to inform the taxpay- ers of the campaign checkoff. This would seem to confirm Democratic National Chair: man Robert Strauss' com- plaint that IRS, under Repub- lican rule, is de-emphasizing the dollar contribution be- cause it would give the debt- ridden Democrats an even fi- nancial break with the Repub- licans in the 1976 presidential election. Where's the Jewelry??In 1968, the prestigious Smithso- nian Institution obtained a collection of precious 19th Century jewelry. The national curators were so excited that the 1969 Smithsonian report promised "a spectacular jew- elry` exhibition" and, as a I teaser, showed ?illustrations of three gem-laden brooches. But Instead of becoming part of a grand display, 150 pieces of I the historic jewelry that I seemed so irreplaceable in 11969 have been auctioned off in Geneva for some $140,000. Sold, for example, was awe- !some jewelry that once be- lo ntzg4 to J. P. Morgan. The Trasn't told about the elation; indeed, the auction In past years, Indian intelli- payers would be better off if catalogue identified blie seller only as -an Alltertcan institu- tion." We asked the Smithsonian: why the treasi EN hadn't beeti loaned out to ),.ss fortunate museums inste.hi of consigned for display on the bosoms of rich men's wives A spokes- man explained that the collec- tion had beer ocquired with the intention ,f auctioning it off, that the 'iroithonian hact netted about P0,000 on the' sale and had r 1:tined a small; representative assortment of the gems. ? Perjury Prohe -A year after the celebrated ITT hearings, the Justice Department is fi- nally getting round to inves- tigating who ornmitted per- jury. The FE_ has been as- signed, for exauiple, to rewriti the history o he infamous Dita Beard men'. - Agent Jam ,s Elder has called upon S than Lichtman, Mrs. Beard's fi rmer secretark,-. who typed t it memo. He asked whethel her affidavit; claiming she didn't recall typ. ing all portion of the damag: ing memo, was 'in your words- and in your language?" She: acknowledged t had been pr- pared for for hor ,r an ITT attor-- ney. The FBI s also plannink to question ITT employee". Beverly Sinc4 voge and Wil- liam Merriam Ilot the hives, ligation base 't reached as. - high as forme Utorney Gets. eral John M1 call, who has been caught ate most glar- ing inconsiste idles. 05 1973, United ? tare Syndicate " Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 A:7-CW.0 Aot Cosh" Approved For Release 2005/06A6 ? CIA-RDP75600380R0003 NEW YORK TIMES DATEI1A~113PAGE I'S k Says 9(98_9 IC Trained Tibetansin _C(210racto, New Soeotal to The New York Times WASHINGTON, April 18? Th a central Intelii=e 4.F4ara-act-uP-z?sagrat....1:tase Colorado Tibetan guerrillas in mountain ailae in tl,,,14,,.1*_g?.1Letan,- Sitt4,9w1en there was an_ep- rising' against _Chinpqa ride in ib- -w it.. apes. riliTINIMMIIIMI I. ao of , David Wise, the author, a mar tne agency bran training Tibetan refu ees re- cruited in India in 1 T a nivre-rma woric; war upy base, near Leacville, o o. The ttiot cot1 11e .tuel,...e3,11, the ery ui2 "ay Administration be said. okesmarl for ? ? a ency .d ta er wo PIM,- no I.. art - 11111'1 el me- Mr. Wise, the former Wash- ington bureau chief of The New York Herald Tribune and co-author of "The Invisible Government," a 1964 book about the Central Intelligence Agency, wrote that the Tibetan training program apparently ended abruptly in December, 1961, six months after the Bay' of Pigs fiasco and a few days after its cover was almost blown in an airport near Colorado Springs. Delayed by Bus Accident ? "Ironically, it was the snow and the mountains ? the very factors that led the C.I.A. to select Colorado for the train- ing base ? that almost caused the operation to surface," Mr. Wise wrote. A group of Tibetan trainees were loaded aboard a bus at the Army camp for a 130-mile trip to a nearby airfield in Colorado Springs, where a large Air Force jet was waiting to quietly fly them out of the country before dawn. "But coming down the moun- tain," Mr. Wise wrote, "the bus skidded off the road in the snow. As a result of the delay caused by the accident, it was daylight when the Tibetans ar- rived at the field." Once there, the book went on, overzealous military secur- ity officials herded the air- port's employes around at gun- point, but not until at least one of them saw the Tibetans board the jet. Qonl,plaints to the local , sheriff were made about the, manhandling of the civilians,, and a few newspaper articles describing the bizarre encoun- ter were published in Colorado Springs and Denver. But, Mr. Wise wrote, the full implica- tions of the incident did not become public. When a reporter for The New York Times subsequently began a routine inquiry, based, on a brief news-agency dis- patch about the incident, the book said, the office of Robert S. McNamara, who was then Secretary of ;','`'Defense, tele- phoned the Washington Bureau of The Times and asked that the story not be used because of "national security" reasons. The Times acquiesced, Mr. Wise wrote, in line with the general newspaper practice in those years of not challenging the Government's definition of "national security." The tvio _top news officials in Wagungfon for The Times in 1961t the bureau chief, wyomit4ti .. .,...,.., Nu , 9,t ,.. ,A.:.. ..Denver . LeachAlleaA'' GrandVS.-- Junction Colorado Springs NEW MEXICO . ' ,------, 0 MILES 100 The New York Times/April 19, 1973 Camp reportedly was in Rockies 130 miles from city of Colorado Springs. James Reston, and the news editor, Wallace Carroll, said yesterday that they did not re- call the incident, Mr. Reston is now a vice president' and columnist for The Times. and Mr. Carroll is editor and publisher of the Journal and Sentinel in Winston-Salem, N. C. Jack Raymond, who was de- fense correspondent for The Times in 1961, said yesterday that "I do remember at the time knowing about the incident and I don't recall what pre- vented me from writing about it." Mr. Raymond, who is now arpciated with .the Aspen In- stitute for Humanistic Studies New. York 40e4 in a:tele- phone intervieW -rm inclined to think that I didn't have enough information about it to write a story. I have no imme- diate recollection being thrown off the story by any- body." 'Nerve-Racking Moments' Write cause me e ve-rackin mo e ta"-aet enc ead- be- a arinnimeed the apenintment of John A Men-me as the. new Director of Central- Intelli- gence Mr_ McCpne replaced Allen W Dulles. whose re,s4natio was ilciT tted alter Mr. he dispute between Tibet and China began in the 13th ;?entury, Mr. Wise wrote, with riibienta periodically claiming as part of her territory. Mainland China was taken over hy communist , forces led by Mao Tse-tung in 1949, and in 1950 Chinese troops marched into Tibet. In May, 1951, the Chinese 4gned an agreement with the Dalai Lama government for the occupation of Tibet, pledg- ing not to alter the iexisting political system in Tibet or the powers of the Dalai Lama. However, the agreement 'also provided for Chinese control through the appointment of a military and administrative committee. n.arilig the mid-nineteen- Mr. "Vise *rote, Tibetanl-guerrillas began of yft aid. arc e lai Lama was /weed to flee over high mountain passes to India after a Chinese mortar attack on his palace, Mr. Wise asserted. I re &II ? ,41,11, I _4114MLOCMITaMn .2..MMIPM31311:11' 1.4.4i-tiAlle.ONINPVII.f fl Vpfq wartare brake ant .in Hhetraftet the escapk, Mit Wise reported, and ti ousands of Tibetans were ki cc and the Dalai Lama's govi rimlent was dissoly,ed _by .the Chinese: In- dia'?s, decision to gi ant sanc- tuarr tO the Tilit increased the pres i e between tha a :Ind t na,thettook '41"1.1e Secret train i. operation' was hardly a succ.,s,, Mr. Wise' wrote, because t ie guerrillas "infiltrated into -ibet by the; C.I.A. were attem :itIng to har- ass the Chinese, n )t to free the country; in the lt,niz run it is doubtful that the., made very. much difference. ..-;ince 1961 Communist Chin, has tight- ened its grip on ribet." Tibet, like other areas argely popu- lated by ethnic rnnorities, now has the states of a autonomous region within Chil "Would the na' ion's security have been endangered if the1 story of the Tibetan operation; had been disci(); ed in 1961?" the book asked. "In the wake, of the Bay of Pigs, Kennedyl ordered two separate investi- ettitini of the 4. 1 A., and he' stirtirgled to tak ,ighter con-' .tral over thi' a: r'',cy's opera-1 tins 1/y -ts top lead- ' blication the story tgrition on a parribqr of im- uortant issues," Mr. Wise sug- !ested "incl -76-211sic - ion o W br rloney would -111?ftfltaice clandestine intgli ence er- ions." A se issue, he er the agency has s for opefelng iszstr-irr-the Tin itc'nj5tes. Finally, Mr, Wise wrote, that "disclosure mig at also have led to a public .zamination of such importatr questions as whether President Eisenhower approved the T betan operation, whether Presid .nt Kennedy was aware of it or approved it, and whether the 'our (watehdog' committees of he Congress had had any knowl 'de of what was going on in Cr lorado." Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 THE ,VA3m\d,F,QrRelease 2005/06/06 : CIA-RDP7513004Wp193150018-9 i ON POST DATE PAGE A Sense of Deja Vu at CI Watergate Disclosures Raise Questions "We were not involved because it seemEd to me that was a clear violation of what our charter was." Richard M. Helms, Pah. 7, 1973 "Dick Helms was most cooperative and helpful." Tom Charles Huston, July 1970 By Laurence Stern Washington Post Staff Writer In the vernacular of courtroom melo- drama, someone was dissembling. It was either Richard M. Helms, the re- spected formed director of the Central In- telligence Agency, or was it Tom Charles Huston, the White House architect of the controversial 1970 domestic intelligence plan. The conflict was rooted in an appear- ance by Helms before a closed? session of the Senate Foreign Relations Committee last February 7. Helms was being questioned by Sen. Clifford P. Case (R-N.J.). It had come to his attention, said Case, that in 1969 or 1970 the White House asked that all the national intelligence agencies pool resources to learn all they could about the anti-war, - iovement, ? , ? "Do you know anything," he asked Helms, about any activity on the part of the CIA in that connection? Was it asked to be ivolved?" Replied Helms: "I don't recall whether e were asked but we were, not involved ecause it seemed to me that was a clear ?lotion of what our charter was," "What would you do in a case like that? uppose you were?" Case persisted. "I would simply go to explain to the resident this didn't seem to be advisable," id Helms. "That would end it?" "Well I think so, normally," Helms con- luded. Case's prescient question was posed near- y four months before the public leak of Iuston'S niertiOranda describing for the 'first ime the intensive domestic, surveillance See CIA, At Cot- 1 program approved and than, allegedly, rescinded by Presi- dent Nixon five days later. he ThitnJi- cated Helms and his agency so gjnre7trgena"-?111 &real that the --WOR. ,,,n,eauszys,s_e&ps?.tite. in .Aigar..9,SifigalLS.11.9$e w were privy,p_the,acret es- Imen,y_Allenry,?Helms , in (One of Huston's top secret memoranda, addressed to , former presidential chief of 1 staff H. R. (Bob) Haldeman, : reported: "I went into this ; exercise fearful that CIA \ would refuse to cooperate. ' In fact, Dick Helms was most helpful ..." Huston also reported that top CIA officials joined in meetings with other intelli- gence agencies to draft the 1970 intelligence report. lay_the_,, tine _the Hu s on documents surfacedi an he artifislictioneCifne i r- glut Helms had returne to iiiiSa7siadOrier post in Ltati,,.0? IliaL.UOVer., znI,VelY comixonted , on ,the snafaict Itetw,aen his Own. teatimonY that "we were not invulved" rad- Huston's ..assartion, -that 4.41ek Helms was, raosLcoop- osa,tive.and helpful," ..Y,,eLb,cre_ ryas compelling new evidence 'IlYartlitrrIA 3:411 involved in sallies- sfewity matters which, bx?lielths' own aduasTon, )dolated the agency's con- graggortal charter. h"17'r 1latig,114.1 Seetli.itY .1.4111,4g,th.c -(14 decreed that 41_11.11,YP_Icl .171040,1 sub- 41,1vpa,, law enforcement zanaers. or internal le aPity Lingtions." Incidents such as these breed a sense of frustration, if not political impotence, among those on Capitol Hill who have sought to place in the hands of Congress the countervailing power of Oversight on CIA opera- tions. "..(31,41.14,0gprczsine.:, _c,Q1112,14v is So ed one senior Senate staff ape- Sigikt in CIA inatters.,Mie Relrni Performance _waS?a live-in when they should Lave been blowing him out efmthe,iirater." Time and time again since its inception 26 years ago, the CIA has been cling/it with its cloak and dagger showing in the wrong places at the wrong time. Six years ago she agency was rocked by its last Major :."--elligence scandal?the Aosure that it had been etly funding and infil- .ng student associations, ,ersities, labor unions, rch groups and diverse tr private organizations. ens, perhaps hundreds of millions of dollars in public funds were distributed with- out public accounting to in- fluence the views and activi- ties of supposedly independ- ent organizations in the United States and abroad. The money was circulated through a network of tax-ex- empt foundations operated, in many cases, by an influ- ential elite of bankers, law- yers and industralists who provided a massive and re- spectable cover. If ? ever there were grounds, for a wholesale con- gressional review of the CIA's role in the public and private business of the conn- try, the 1967 episode would seem to have provided the occasion. "I'm not at all happy about what the CIA has been doing," said then Vice President Hubert H. Hum- phrey, "and I'm sure that out of this very singularly disagreeable situation will come a reformation of that agency." 23,1414,11:41441....g. ed b si- eay. President Johnson ap- pointed a, study commission, headed by then Under Sec- retary of State Nicholas DeB. Katzenbach, which re- ported back speedily that the CIA had been following the orders of the National Security Council in carrying out the covert financing scheme. The Katzenbach panel called for a modest reform. It proposed a prohibition on CIA funding to educational, philanthropic and cultural organizations such as the ones the agency had been secretly funding. But it also suggested a loophole under which such grants could be made to serve "overriding national security interests." Helms was one of the three panel members. Less than a year after the secret tiinding scandal broke, a group of Old Boys met in January, 1968 under the auspices of the presti- gious Council on Foreign Relations to take stock of the agency's somewhat bat- tered public position. The elite panel included the late t. Allen Dulles, e rnational financier C. Dmiglas Dillon and two for- heads of the agency's P,ans (familiarly known as "r.irty tricks") Division. while the public rhetoric promised reform and tighter safeguards on 'CIA opera- tions, the focus of the off- the-record discussion at the council's New York offices altogether different:. This was the private diagno- sF presented to the group ti.1 Richard M. Bissell Jr., who was the CIA's chief of c, vert operations during the y of Pigs debacle: -On disclosure of private Aitutional support of late it is very clear that we should have had greater corapartmenting of opera- tit -ns. If the agency is to be ef eetive, it will have to mike use of private institu- tions on an expanding scale, th nagh these relations Which have been `blown' ea inot be resurrected. 'We need to operate un- dr deeper cover, with in- : crotsed attention to the use of 'cut outs' (agency fronts) rite CIA interface with various private groups, in- cluding business and stu- dent groups must be reme- died." 3issell's comments were never intended for public co isumption. But a record of the discussion was found in an university official's of- fice during a 1968 student; rad in Cambridge, Mass. The issue, as privately de- fit ed among these blue rib- bon members of the intelli- i ge ice community, was not. re erm. It was how to do it be ter and how not to get cal tght low the agency is in hot tpr again in the after- m::th of the Watergate scan- da the Ellsberg affair and th? CIA's involvement with ITT in the 1970 Chilean pr-sidential election. "or the first time the Arierican public learned of CI "safe houses" for covert operations within the shadow of the National Ca- tividral in one of Washing- ton's prime residential dis- tricts. There have been reve- lei ions of domestic political es ii,mage teams composed of 7_,x-CIA employes. rhe agency also seems to be a dispensing center for "s.eyile" phone numbers, sp ,,- cameras, mail drops, wi -.1,s and tape recorders?no quections asked?when ap- Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 THE WASHING TON POST DATE proached through proner White House channels. The most serious lessor of the recent disclosures is that the agency and the White House national secu- rity managers have not been cured of the penchant for entanglement in domestic affairs. And Congress, in defer- ence to the agency's mys- tique of national security un- touchability, has been reluc- tant to press hard questions. One, such question might be the role of the CIA's Do- mestic Operations Division, which was created nearly 10 years ago and which has been publicly mentioned in the press and at least one serious study of the CIA, The Espionage Establish- ment by David Wise and Thomas Ross. There right also be glizs- tiens,abottf, ,tie tba_Mre, of thesuper-speret National Se- Mf6e- -414zeg .4 know n iii intelligence pwonylee as Enskids) by Aehich the powers of the .ageney_have been zractorlY expanded far beyond their gbarter for foreign 4ntelligence gathering. - .4During the confirmation ite.aring Last week for Wil- liana...E,_celby, the nornikiee to-lleact the, agency, actins Semate_Armed Service Corn- ., , Trottee, _chairman Stuart (D-Mo.) asked' geltax.,abont the _INISC dirh- --tixes. Colby suggested that- 4.12Irtater was ton sensitive fair public discussion. One of these -directives, NSCID 7, empowered the agency to question persons within the United States and to interview American travelers to and from Com- munist countries, Wise and Rosi wrote. It also estab- lished the basis for the CIA front groups and fund con- duits which were "blown" in the 1907 disclosures. The prevailing tone of Congressional oversight of the intelligence community was expressed during a 1971 debate by Sen. John C. Stennis (D-Miss.), the senior congressional . overseer of CIA activities. "As has been said, spying Is spying," Stennis said. "You have to make up your mind that you are going to have an intelligence agency and protect it as such, and shut your eyes some and take what is coming." In recent weeks the agency has been subject to heavier congressional scru- tiny than ever in its history as a result of the Watergate disclosures. Five commit- tees, four in the Senate and_ one in the House, have been looking at various aspects of agency operations as they related to Watergate, ITT, Ellsberg and the 1970 intelli- gence plan. But a searching and sys- tematic examination of how the CIA functions and how deeply its operations in- trude into the internal af- fairs of the United States does not seem likely to emerge from this spate of overlaping investigations. .4,r_thststahp_lays.over tears watched the acle et?exp,osure,_ 4en- the _.excesSe&--X,?,mthe c,,ix.s.oavert aqJYA-CL-t.11ere at-tcy, for its part, is TkOtt&hglt nut" until the-clitnor-Tub- sides once again. Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 P .A2Kta-r2- rnszA, Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 THE WASHINGTON POST The Washington Merry-Go-litound DATE 2cs7uin PAGE pq THE WASHINGTON POST Friday, July 20, (973 D10' Cut in Gasoline to U.S. Eyed in Europe By Jack Anderson sg;Irrom 134421P2....tja?,C'nfrall) e ggage Agency_ has reported ominousof curtailing &lapis tali of 114?a-:--us..21r_ie uti: m- bewage-sua soybeans. The U.S. produces 90 per cent of the soybeans in world trade. These yellow beans are both the cheapest and richest ? source of protein available. This makes them essential to the nourishment of people ifrom Mexico to Japan. ; The worldwide demand for 'soy meal, however, has ex- ceeded the supply. President Nixon, therefore, has slapped ' strict controls on soybean ex- ports. But the U.S. is at the other end of the pipeline on gaso- line. The flow of gasoline to the United States passes, in large measure, through the refineries of Europe. -41gaw te Euronpans to the ciAa a precedent for To- 1' ' al- red gas. Murphy's Retainer?Genial George Murphy, the former phone calls and personally at the time. T lure was not "interceded" with Health, Ed- ucation and Welfare Secretary Caspar Weinberger in behalf of the project. As for the $3,000 consulting fee, he said: "They got the best buy in Washington in many a moon." Footnote: The auditor also sharply criticized other as- screen star who made Et to the Senate, is in trouble again be- cause of his "consulting." He lost his Senate seat to Sen. John Tunney (D-Calif.) in 1970 after we reported that Murphy had been drawing $20,000 a year as a "consultant" for Technicolor, Inc., while serving in the Sen- ate. Technicolor also paid half the rent on Murphy's apart- pects of the bilingual chil- ment and provided him with dren's television project. They handy credit cards. recommended that $489,935 in It happened that Teehni- expenditures be "disallowed," color was run by Patrick J. and questioned the allocation Frawley Jr., who often used of another $552,657 spent to company funds to push ex- treme right-wing causes. Now Murphy is back in the consultant business. His firm was paid $3,000 this year for two months of "consulting" over a bilingual children's tel- evision project sponsored by set up a television show simi- lar to 'Sesame Street" for Spanish-speaking children. The auditors also complained of exhorbitant travel and sal- ary expenditures. Who's Listening ? Sen. Barry Goldwater (R-Ariz.) the Office of Education, wasn't surprised to learn that An interim audit of the tele- President Nixon has been bug- vision project is highly critical ging all conversations in the of the retainer paid to Mur_ Oval Office. Explained a Gold- phy's firm. "We found no doe- water aide: umentation to suppoA tAe $3,4- "One conversation he had in 000 in retijner fees' stars the Oval Office was reported so precisely by Jack Anderson that he felt there had to be a recording device in operation (r, 1973. 17nited Ihs?u, ? anidiesibe the confidential report. Murphy insisted to us, how- ever, that ke made 40 or 50 comma out of place." It's true we printed verba tim quotes from a secret White House sirategy session that Goldwate, Attended last , year. Here are xeerpts: "We are go n ,4 to have a wild card in Ito game now and then," tlic }resident ex- plained to pa i (4 leaders. "I thought I wou d invite some member of Coagress, who Is not in the leads rship, to come to the meeting -"rom time to time." Then he introduced Gold- water as the fhtst special guest. "I knew I snuld maks It sometime," sal it Goldwater, who lost the 1964 presidential election. "Would you 1 ke to change chairs?" offered the President. "Not after what I've seen," said Goldwater. Our story went on to report what was discussed at the meeting. The vet hatim quotes, we are happy to reassure Goldwater, did not come from the President's secret tapes. We had a copy 4,1 the secret minutes. Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9 :4:-.:1\144p-r64 (ailztelease 2005/06/06 : CIA-RDP75600380R000300050018-9 DATE 21 AV 67 P73 PAGE THE WASHINGTON POST The Washington Merry-Go-Round THE WASHINGTON POST Tuesday, Au* wilt 21,197y 1113 Grain Companies Rake In Subsidies By Jack Anderson and Les Whitten A handful of giant grain companies reaped $333 million in federal subsidy payments at the same time that they were making windfall profits from sales in the Russian wheat deal. The massive sales profits grabbed off by the wheat bar- ons have already been documented: the traders bought cheap on the basis of private information, then sold dear when the magnitude of the deal drained wheat sup- plies. Their shenanigans helped drive up the prices of meat, dairy and bakery goods. Now, the Senate Investiga- tions Subcommittee under Sen. Henry Jackson (D-Wash.) has documented how the grain merchants chiseled the tax- payers through subsidies. A secret staff memo meant for Jackson's eyes only asserts that "the expert 'subsidy pro- gram cost American taxpayers $333 million in agricultural subsidies in connection with the Russian grain deal." Much of the gouging was accom- plished through dubious paper transactions. Under the export subsidy system, the government pays the .U.S. seller the difference between the high price he could get in the U.S. market and the lower price he would get from the foreign buyer. For example, if the seller could get $3 a bushel in the U.S., but only $2.75 in Europe, the government pays the U.S. seller 25 cents a bushel. The government promotes such deals to improve our balance of trades and bolster the dol- lar. At the time of the Russian wheat deal late last summer, subsidies had soared to 47 cents a bushel ? the differ- ence between the U.S. price of $2.10 and the foreign price of $1.63. The Jackson memo de- tails how the grain companies used this situation to collect massive amounts in subsidies by clever manipulation. "For example, we have in formation that one compan, (Cargill) sold wheat to its wholly-owned South American affiliate (Tradex-Panama). The company collected the subsidy when it showed proof of ship- ment to its affiliate. "The affiliate then sold the wheat to another affiliate in Geneva which thereupon made a final sale for $2.20 (a bushel) or 10 cents above the American price." In other words, Cargill sold wheat to its affiliate in order to cash in on the high subsidy. Then . Cargill made a profit a sma a when its affiliate sold the Irgtrrnt) wheat. The profit was re- -Tne nook also discloses CIA ... "spooks" in Chile and CIA corded by the foreign affiliat , and sheltered from U.S. taxe . misuse of funds. "As far as we can tel--Watergate Music ? ea Jackson's investigators aiht-4,1e's /ORO radio has banned a veled, "the wheat never let humorous record called the ship on which it was origi- ,"Haldeman, Ehrlichman, Mitch- nally loaded, and all transfers were mere paper transfers. "This practice was repeated numerous times as (The De- partment of Agriculture) blindly maintained unneces- sary subsidies which pushed up the price of wheat and ulti- mately the retail cost of food to the American taxpayer." Footnote: A Cargill spokes- man conceded to oar associate Jack Cloherty that transac- tions with affiliates' occurred, and that subsidies were col- lected. He defended the sys- tem as necessary for the U,S. to compete on the'vvorld mar ket. He denied that Cargill se profiteered. Spooky Censors ? So far, the Central Intelligence Agency has successfully blocked publication of a CIA expose by ex-agent Victor Marchetti. Now, State Depart- ment censors are trying to get a copy of the manuscript from its co-author, John Marks, for- merly a State Department em- ployee. Among the manuscript's secrets: 431?1?1,1??orilergLan hi citt of ese in ' e- taurant cause ac n erson is one o s owners. n ac aye in eres nese ell and De: by a group called "The ( rvep." The ban w as ordered after the station received calls to the station attacking 'John Ehrlichman, .vno has just re- settled in SezJtVa_With his fam- ily. The station explained to us it feared tin- record ("Just when we wei e getting to be well-to-do, ho Watergate turned into nor Waterloo") might stimul assaults on the former Wnit e House aide's family or pre .udice action by local lawyers t ) disbar him. Typewriter 'rusader The axpayers of college Park, Ga., have been endering unto Billy Graham hat which is the College Park High School's. Despite t..,paration of church and si ate. the school shipped off 25 Ol its typewrit- ers to Atlanta for temporary use in Grai a m's crusade. School principal Joseph Bos- tardi explained it was "a valu- able commuoil v service" which he woulo gladly repeat. Belli to Harm? ? Famed lawyer Melvin 3e1.11 tells us he will fly to Ham to get copies of all POW pr,son records if the U.S. court I tartials his ex- OW client, 1N4 'rine Lt. Col. 'dison Millet Miller is arged by )ther POW, avy Rear Adm .lames Stock- dale, with c000erating with the Communists. P 1973, United Fr t.,rs Syndicate Approved For Release 2005/06/06 : CIA-RDP75600380R000300050018-9