PUBLICITY UNDERMINES DICTATORS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000300050018-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 16, 2016
• Document Release Date: May 31, 2005
• Sequence Number: 18
• Publication Date: January 3, 1973
• Content Type: NSPR

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
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iSt%ittok
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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
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.47-?b2.0e*
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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
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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
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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. reports.in-
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,...in 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.
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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 "
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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."
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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-
le.ar 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
w.is 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-
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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.
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P
.A2Kta-r2- rnszA,
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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.
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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
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