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March 21, 1973
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-- Approved For Release 2001/08/07 : CIA=RDP77-00432R0001001-20004-3 CONFIDENTIAL INTERNAL USE ONLY This publication contains clippings from the domestic and foreign press for YOUR BACKGROUND INFORMATION. Further use of selected items would rarely be advisable. Governmental Affairs . . . . . . . . . . Page 1 General. . . . . . . . . . . . . . . . . Page 10 Far East . . . . . . . . . . . . . . . . . Page 14 Eastern Europe . . . . . . . . . . . . . . Page 25 Western Europe . . . . . . . . . . . . . . Page 29 Near East . . . . . . . . . . . . . . . . Page 30 Africa . . . . . . . . . . . . . . . . . Page 36 Western Hemisphere . . . . . . . . . . . . Page 38 any c2 (, :2i /1 0 lru cep CONFIDENTIAL Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 try to prevent -the election of Salvador Allende Gossens, a Marxist, as President of Chile. The recommendations in 1970 reportedly included steps ' to (maneuver the departing ;Chil- can President back into power, to foment violence that might bring about a military take- over of the country, to use American governmental agen- cies to supply anti-Allende propaganda to other Latin combination of these things. The C.I.A. official who was said to, have "agreed with" these proposals was William V. Broe, director of the agency's clandestine activities in Latin America. The I.T.T. official who testi- fied about this conversation and many others with Mr. Broe and other high officials of.the Uni- ted States Government was William R. Merriam, formerly head of the corporation's Wash- ington office. . Mr. Merriam was the first witness to be heard in public session by a, special subcom- mittee of the Senate Foreign Relations Committee that is headed by Senator Frank 'Church, Democrat of Idaho. The subcommittee will - con- Iduct what is expected to be a ,two-year inquiry into the be- Mavior of United States cor- porations that operate around i the globe. Among the main things the subcommittee wants to find out is the extent to which these multinational ? corporations in- fluence United States, foreign policy. The first two weeks of the hearings will deal exclusively with the reported attempts of International Telephone and Telegraph to enlist the help of various branches of the United States Government to keep Dr. Allende out of office. It is not yet known whether .an official of the Central In- telligence Agency will. testify, in person or in writing. in public session or behind closed doors, about the agency's ac- tivities regarding Chile. The subcommittee was said to be NEW YORK TIMES 18 March 1973 ~Ierging of Kissinger and Rogers Posts Suggested I uy .lvruv w. ruvtvr,z . a Ynuaaelpnia nanxer and for- Special to The New York Timer mer White House and Defense WASHINGTON, March 17- Department offibial, and 'has Ac n efan tnwsrrl refnrrn;nv #U, financial support from the Car- !sad William P. Rogers. Consolidation' of the two posts, the report suggested, policy machinery' ?" tional Peace, conducted a two. lour foreignzing responsibilit cry; a panel of prominent citi- by centraliyear study. zens suggested today that con- by ar under the President sideration be given to combin- ing the posts of Secretary of State and the President's Spe- cial Assistant for National Se- curity Affairs. The suggestion came In a' re- port, "Foreign Policy Decision Making," submitted by a panel of the United Nations Associa- tion of the United States of America. The panel, which is negotiating with thp C.I.A. about this. What came of the reported agreement on a course of ac- tion between the corporation and the agency was not mndo clear in the opening day's hearings. Dr. Allende was elected president of Chile and took of- fice on Nov. 3, 1970. He sub- sequently took over business properties belonging to I.T.T. and some other United States companies,,' as he had promised in his campaign and as corpora. tion officials had feared he would. The picture that emerged from the day's testimony was of the Central Intelligence and International Telegraph as hard line anti-Communist groups that greatly feared Dr. Allende's accession to power and that worked together to try to per- suade the State Department and Henry A. Kissinger, the White House adviser on Na- tional security, to adopt an equally hard anti-Allende view. The outlines of the corpora- tion's attempt to enlist the help of tho'Government to pre- serve its interests in Chile were disclosed a year ago when por- tions of a number of internal I.T.T. documents were pub- lished by the columnist, Jack Anderson. Today's testimony, together with additional documents made public by the subcom- mitte - documents that were voluntarily submitted by the corporation -depicted a much more prolonged and extensive pattern of consultation between the company and various gov- ernment officials than had pre- viously been disclosed. Mr. Merriam spoke, for ex- ample, of "25 visits" to the State Department and of hav- ing talked with Mr. Kissinger and members of his staff for a "year." His testimoney also indicated that most of the visits by com- pany officers to six high Nixon Administration officials in 1970 and 1971-these were disclosed yesterday by another Congres- sional committee-had the dual purpose of talking about the company's antitrust problems with the Justice Department y - , resting the uncertainties and friction now existing between the State Department and the National Security Council, by bringing the State Department "back into the mainstream of strategic foreign policy and helping restore its self-respect and vitality" and by brining all the manifold internatiptial activities within the Govern- ment under a consistent policy structure. Among those serving on the panel were Richard M. Paget, a member of President Nixon's Advisory Council on Executive Organization; George D. Woods, former President of the, World Bank; David E. Dell, former Di- rector of the Budget Bureau, and Francis T. P. Plimpton, former Deputy United States Representative at the United Nations. per Company. Other compa- nies represented included, he said, Kennecott Copper, W. R. an dthe Bank of America. Such meetings among corporate rep- resentatives In Washington oc- cur "all the time," he said. Mr. Merriam said that, the group had never arrived at any conclusions on what to do. Senator Edmund S. Muskie, Democrat of Maine, asked why I.T.T. wanted to bring about the collapse of the Chilean economy if Its aim was, as Mr. Merriam said, to make sure that Chile gave the corporation "better terms" In payment for 'Chitelco, the telephone com- pany owned largely by the cor- poration after the Allende Gov- ernment took it over. ' Mr. Merriam replied that he thought "the threat of economic collapse" might prove effective with Mr. Allende "if he knew that the banks might stop lend. ing Senator Muskie suggested that thre threat was an attempt to "blackmail Allende." Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 NEW YORK TIMES 21 March 1973 C,'I, A,-I. T, T. PLANS I ON CHILE REPORTED By EILEEN SHANAHAN Special to The New Yark Times WASHINGTON, March 20 A vice president of the Inter- national Telephone and Tele- graph Corporation said today that a top official of the Cen- tral Intelligence Agency had "agreed with the recommenda- tions" the corporation made to A central conclusion was that the interrelation of foreign and domestic policy issues, such as in the current "energy cri- sis" means that more and more of the decision making must. be , done at the White House level. It was as a step in that di-i rection that the panel suggested) having ? the same. individual and about I.T.T.'s attempts to keep Dr. ? Allende from being elected and, later on, attempts to oust him. ' The ouster plans centered on Ideas to bring about "economic collapse" in Chile, according to ? company documents and testimony. As part of this plan, accord. ing to Mr. Merriam, C.I.A. offi- cials made "repeated calls to firms such as General Motors; Ford Motor Company and banks in California and New York," asking them to stop or reduce their activities in.Chile to hurt her economy. These companies, refused, according to other I.T.T. documents that were put into the record. Among other items of eco- nomic warfare against, the Al- lende Government that were proposed by the company were a cessation of all United States aid, under the guise of a re- view, and intercession with the World,, Bank and the Inter- American Development Bank to get them to stop making loans to Chile. It was not clear whether any of these proposals were accepted. Mr. Merriam also acknowl- edged, when asked, that a group of Washington represent. atives of companies with eco- nomic interests in Chile had met several times in his office to dsicuss how to cope with the Allende Government. It was not he who initiated the meetings of this ad hoc group, Mr. Merriam said, but rattier the Washington repre- sentative of the Anacohda Cop- Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 NEW YORK TIMES 0 NEW YORK TIMES 22 'March 1973 / 16 March 1973 McCone Defends I. T. T. Chile Fund Ideal FORD FOUNDATION structively. The money was to la lions contained in the internal AT ODDS WITH C.I,A.1 Denies Company Sought to Create Chaos to:Balk Allende Election By EILEEN SHANAHAN Speclal to The New York.Tlmea WASHINGTON, March ' 21-,- lohn A. McCone, former head of the Central Intelligence Agency and now a director of the International Telephone and (Telegraph Corporation, denied trepeatedly today that a fund of $1-million or. more than the ,company had offered the United States Government for use in Chile'had been intended to'fi- nance anything "surreptitious." The' willingness of d.T.T..to commit the money ,to the cause of preventing the 'election of Salvador Allende Gossens, a Marxist, as President of Chile was apparently, made known both to the C.I.A. and to Henry 'A. Kissinger, President Nixon's adviser on national security. The person who decided to of- fer the money. was Harold S. Geneen, board chairman of I.T.T, Mr. McCone no longer. headed the C.I.A. at the time of Mr.' Geneen's original offer, in mid ,1970, though he'was still a con- sultant to the agency. He' said that as an I.T.T. director he had not been told of the offer until after the first phase of the Chilean election in September, 1970, in which Dr. Allende won a plurality but not a majority. Dr. Allende was elected by the Chilean Congress a month later and took office in Novem- ber, 1970. Subsequently he took over business properties belong-, ing to I.T.T. and some other United States companies. Mr. McCone was testifying today before a special subcom mince of the Senate Foreign .Relations Committee that is looking into the activities of American corporations that op- erate all over the world. Mr. McCone said that at no time had Mr. Gencen contem- plated that the proffered fund of "up to even figures" would be used to create "economic chaos," despite repeated recom- mend'itions to that effect from various people within I.T.T. and others within the C.LA "What he had in mind was not chaos, Mr. McCono said, "but what ,could be done con- be chap ieled to people who I.T.T. memoranda that have come to light that in Septem- port the principlsu es P and Pro- ber, 1970, the the American Am- grams the United States stands bassador to Chile, Edward M. for against the programs of the Korry, had received a "green Allende-Marxists." light" from President Nixon to These programs, he said, in- do all possible short of military cluded the building of needed action to keep Dr. Allende from housing and technical assist- taking power-was Chilean, not housing American. ance to Chilean agriculture. Mr. Hendrix said that the Both Democratic and Repub- information had come to him lican members of the subcom- 'from a highly placed member mittee reacted with consider- of the Christian Democratic able skepticism. party, which was opposed to Senator Frank Church, Demo. Mr. Allende, a man whom' he crat of Idaho, the chairman of had known and trusted for the subcommittee on multina- years. tional corporations, noted that Mr. McCone disclosed that as there was nothing in the scores head of the C.I.A. he had re- .of internal I.T.T. documents in ceived offers of financial help, the committee's possession that similar to that made later by indicated the money was for I.T.T., from various American such "constructive uses." ? corporations. Senator Clifford P. Chase, Re- Such offers were infrequent, publican of New Jersey, asked he said, and had always been whether the money might not "summarily rejected." .have been intended to bribe A main point in Mr. Mc- members of the Chilean Con- Cone's testimony was that' gress, who had -to decide the none of the plans for inter. election, since none of the fering in the Chilean election-, three candidates had won 'a either by the C.I.A. or by I.T.T. majority. Mr. McCone denied -had been approved by the this. . necessary high officials in . Economic Aid Noted either the Government or the Senator Case noted that the company. United States had put more Propriety Questioned than $1-billion in economic aid Senator Edmund S. Muskie, into Chile in the decade before Democrat of Maine, expressed the election of Dr. Allende and concern, however, that : the that he was elected anyway. plans were ever "seriously-con- "How could a man of Mr. sidered." Geneen's intelligence possibly "The instinct for returning think that $1-million for these to such measures in the future kinds of purposes in six weeks will be very strong and that's could make any difference?" he what concerns us," he said. asked, referring to the period Senator Church questioned remaining before the Chilean the propriety of interference by Congress decided the election. either the American Govern- "I have too much respect fort ment or a company in what ap- his intelligence to think that." geared to he a free election, no Senator Charles, H. Percy, matter how much the United Republican of Illinois, suggested States might dislike the out- that another way in which $1- come. million might have been used : Mr. McCone replied that "al- to real effect would have been most two-thirds of the people in subsidizing anti - Allende ? of Chile were opposed to Allen- newspapers, which were in fi- de." nancial difficulties. The popular vote in the elec- tion had split fairly evenly that I.T.T. officials had pro- among the three candidates, posed this, but, according to with Dr. Allende receiving a Hal Hendrix, the company -s di- small plurality. rector of public relations for Mr. McCone said that his Latin America, the plan was general philosophy about pri- never approved. vate corporate involvement in Mr. Hendrix, who was an- situations such as that in Chile other of today's witnesses, ex- was that any action taken plained that he had proposed taken should conform with doubling the advertising in such governmental policy. That is newspapers by Chitelco, the what I.T.T. was proposing, he Chilean telephone company said. owned by I.T.T. Senator Church suggested But he said this was vetoed that private financing of such by Chitelco officials "and other activities abroad was poten- executives In New York" be. tinily so dangerous-partly be- cause they feared the purpose cause it would put the opera- would be too obvious. tions beyond Congressional Chilean Source Cited I control-that it might be wise Mr. Hendrix also disclosed tto pass a law forbidding It. that the source of one of the most widely discussed asser- By DAVID BURNHAM . The president of the Ford Foundation has denied an as- sertion by the Central Intel- ligence ligence Agency that New City policemen were trained by the agency at the suggestion of the foundation. The denial contradicted a "fact sheet" on the case pre- pared by the agency for Rep- Representative Chet Holified Democrat of California chair-I man of the House Govern- ment Operations Committee. In the sheet, the C.I.A. said that "at the suggestion of the foundation representative, the NYC police sought assistance from the agency as to the best system for analyzing data." The denial of the agency's( assertion came in a letter from McGeorge Bundy, president of the Ford Foundation, to Rep-, resentative Edward I. Koch,; Democrat of Manhattan, who has charged that C.I.A. train- ing of policemen from more than a dozen cities violated the law. After Mr. Koch had com- plained to Mr. Holifield, James R. Schlesinger, the new Direc- tor of Central Intelligence, said in a letter made public on March 5 that because of the sensitive nature of such train- ing, it would be "undertaken In the future only In the com- pelling circumstances and with my personal approval." Mr. Bundy, responding to an inquiry from Mr. Koch, said that he had carefully examined the C.I.A. assertion and had concluded that "these inquiries disclose no evidence" that any suggestion for C.I.A. training of policemen was made "by any member of the Ford Founda- tion or the Police Foundation or any employe of the New Yrok City project funded by the Police Foundation." The Police Foundation Is an offshoot of the Ford Founda- tion. Police Commissioner Patrick V. Murphy, who could not be reached for direct comment, was quoted yesterday by Dep- uty Police Commissioner Rich- ard Kellerman and an official of the Ford Foundation as saying he believed the idea of going to the C.I.A. originated with Don R. Harris, a private consultant. Mr. Harris, a former C.I.A. intelligence analyst, was one of three consultants hired by the Police Department last year under a $166,000 grant from the Federal Law Enforcement Assistance Administration to help the department rcoganize its intelligence files. In November of 1971, the Law Enforcement Assistance Administration, a branch of the Justice Department, pub- lished a 150-page manual, co- authored by Mr. Harris, which was designed to instruct state and local police agencies how to "apply intelligence to com- bat organized crime." The other author was E. Drexel Godfrey Jr., also a former Approved For Release 2001/08/07 ?: CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 BALTIMORE SUN 19 March 1973 C.I.A. employe. ,Informed of Mr. Murphy's be- lief that Mr. Harris had origi- nated the idea of sending 14 New York policement for train- ing with the C.I.A., an agency spokesman in Washington said the available information indi- cated - the plan first was sug- gested by Wayne Kerstetter, one of six lawyers brought into the department in October, 1971, under a grant from the Police Foundation, the branch of the Ford Foundation. Neither Mr. Kerstetter, who recently left New York' for a law enforcement position In Illinois, nor Mr. Harris could be reached for comment last night. WASHINGTON POST 14 March 1973 Sentencing' Set For Watergate 5 Chief U.S. District Judge John J. Sirica announced yes- terday that he has set March 23 as the date for sentencing five defendants who pleaded guilty to charges of conspir-, acy, burglary and illegal wire- tapping and eavesdropping In connection with the bugging of the Democratic Party's Watergate headquarters. Sirica also announced that two other defendants, con- victed of the same charges aft- er a trial by jury, will be sen- tenced the same date if he der nies their motions for a new `,trial. ? WASHINGTON POST 20 March 1973 etter policy rile urged or State Department By JANIES.S. HEAT Waah4ngton Bureau of The Sun Washington - 'A restructur- ing of the nation's foreign pol- icy machinery to make it more adaptable to new international conditions was recommended yesterday by a private organ- ization of businessmen and scholars. A policy .panel of the United Nations Association of the United States of America, a group that supports the activi- ties of the international organi- zation, called for a reorganiza- tion of the State Department and a greater ' role for it in policy making. The group's most provoca- tive but least decisive sugges- tion was for the merger of the President's two principal for- eign policy advisers. A major, ity of the panel, with varying degrees of enthusiasm, said the Secretary of State and the President's national security, adviser, should be ',the same man. Kissinger Favored At present, Henry A. Kissin- ger, the national security ad- viser, is acknowledged to be President Nixon's principal ad- viser and, in most key areas, his favored negotiator with other governments. William P. Rogers, the Secretary of State, plays a secondary role. , At a nets conference, How- and C. Petersen,'board chair- man of the Fidelity Bank, Phil- adelphia, and chairman of the panel, acknowledged that any President is going to structure his advisers in the way that best suits him. The panel conceded this point by citing alternative ar- rangements, primary reliance on, the national security ad- viser, as at present, or assign- ing. principal responsiblity 'to ,the State Department, as was the case during the Eisen- hower administration, when John. Foster Dulles was Secre- tary of State. Restructuring urged The 'panel's other plain 'pro- posals were based heavily on its belief that solutions to the post-Vietnam foreign policy problems facing the United) States "will have to be sought through more general multilat- eral means, often through ei- ther strengthened or new inter- national organizations." Therefore, it urged that the President "give high priority to fostering and strengthening in- ternational institutions" and Department. More officials should specialize in subjects, rather than in geographic areas, as is the case with the classic political officer in the diplomatic. service, he said. The panel also recommended the creation of a "strong and highly competent policy plan- ning, staff" in the State Depart- ment -to' help deal. with `,'the new global interdependencies." Such a staff was created during the Truman administra-i but it has rarely, if ever, ; played an -effective role in long-range' policy making. Now known as the Planning and Coordination staff, technically responsible to the Secretary of State, the office is,employed mostly for research. . Four of the panel's 22 mem- bers dissented at least in part from major recommendations. David 'E. Bell, executive vice president of the Ford Founda- tion and a former high govern- inent official, and Adam Yar- molinsky, professor at the Uni- versity of Massachusetts and a former Defense Department of- ficial, said the panel had failed to come to grips with the basic problems facing the policy that he restructure the govern-; makers. ment's machinery accordingly. Along with Hugh H. Smythe, In Mr. Petersen's words, professor at Brooklyn College, there should be "more func- and James R. Ellis, a Seattle tionalism and less bilaterial- lawyer, the two former offi- ism" in the foreign affairs cials disagreed with the pro- agencies, particularly the State posed merger of the two for- Stcate Spokesman McCloskey Gets Cypriis"Diploni~tic Post 1)y omu t'y mat"Ut wnaltlnaton font aloft wrltor Robert J. McCloskey, for nearly a decade "the voice" of the State Department, will be the new U.S. ambas- sador to Cyprus; officials in Nicosih'have been informed. A formal , announcement of McCloskey Is appointment is expected to be made by ,the White House in a few days. McCloskey long has been considered for assignment to a variety of ambassado.' rial posts, after an excep- tional career on the public firing line during Innumera- ble crises In American for- eign policy. While the credibility of the federal government as a whole suffered heavy dam- eign affairs posts. Other members of the panel included Richard Newell Cooper, provost 'of Yale Uni- versity and . a former State Department official; Thomas L. Hughes, president of the Carnegie Endownment for Peace and a former career diplomat; George B. Kistia- kowsky, professor emeritus at Harvard University and a for- mer White House science ad- viser; Francis 0. Wilcox, dean of the Johns. Hopkins Univer- sity School of Advanced Inter- national Studies and a former State Department official, and George D. Woods, former pres- ident of the World Bank. Pennsylvania, McCloskey joined the State Department in 1955 as a Foreign Service staff officer and was first as. signed to the American con- sulate general in Hong Kong. He entered the Bu- reau of Public Affairs In. Washington in 1957 and be- came the Stale Depart- ment's press spokesman In 1964. His wife is the former Anne Taylor Phelan of Chevy Chase, old. They have two children. age during this periadpg: e,ed For Release 2001/08/07: Pa77h4 R000100120001-3 nam war, McCloskey's own reliability with newsmen re- On several occasions, Mc-' Closkcy's job hung in the balance as lie sought to maintain his reputation for straighforwardness with newsmen and meet superi. ors' demands for obfusca-' lion. The most celebrated re, ,bound came in June, 1965, when McCloskey, himself a 'former Marine. acknowl. .edged that the first Marine units sent to South Vietnam were authorized to engage "in combat" if attacked. President Lyndon B. John. ..son, determined to conceal the marine conlhat role at .that stage, was furious, and ordered a White House de- nial. Secretary of State Dean Rusk finally calmed McCloskey encountered an- other Johnsonian explosion. when he said the United States would he "neutral in: word, thought and deed" in, the 1967 Arab-Israeli war.. Rusk again came to Mc-' Closkey's aid with a' "clarifying'.' statement reaf. firming U.S. support for Is rael's survival. Secretary of State. Wil. Liam P. Rogers also came to rely heavily on McCloskey; naming him,, in July, 1969, to the dual post of deputy as- sistant. secretary of state for press relations and special assistant to the Secretary of 'State. McC1nsk'y, now S!1 nod gray-haired, has operated less frequently behind the` scenes on, policy guidance and often accompanying the Secretary of State on trips Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 N011 YORK TIMES NEW YORK TIMES 10 March 1973 10 March 1973 Nixon Committee Returns ; NIXON AIDE TELLS $655,000 to 3 Big Donors Robert Allen, Texas Oilman, Confirms It Was His $89,000 That Ended Up With Barker, a Watergate Defendant By CHRISTOPHER LYDON Special to The New York Times WASHINGTON, Match 9- president of the Gulf Resources President. Nixon's re-election and Chemical Company, to committee said today that itl had returned $655,000 to three big contributors, including $100,000 to Robert H. Allen, the Texas oilman. Mr. Allen was the soured of $89,000 that passed through a Mexican bank to the leader of an alleged political espionage operation against the Democratic party headquarters here last June. The committee also an- nounced that it had returned a $305,000 note to Walter T. Duncan, a financially troubled Texas land speculator who had borrowed money for large con- tributions to the Nixon cam- paign and earlier to the unsuc- cessful nomination drive of Senator Hubert H. Humphrey of Minnesota, a Democrat. Further, the committee con- firmed the return of $250,000 to Robert L. Vesco, a principal defendant in the Securities and Exchange Commission's investi- gation of the alleged plundering of los, Ltd., and a subsidiary mutual fund. Even after the return of this I money, the re-election cmm- paign committee reported, it had $4.7-million on hand at the end of February, including $246,000 in new contributions made since the beginning of this year. Letters made public by the re-election committee today in- dicated that Nixon campaign lawyers had taken the initiative in returning Mr. Vcsco's money, but that Mr. Allen and Mr. Dun- can had asked for theirs-Mr. Allen for "personal reasons" and Mr. Duncan because of his financial problems. Mr.. Duncan said, however, that he would make ."major contributions to Republican candidates in 1974 and 1976 if I am able to recover my fi- nancial situation to my satis- faction by that time." The letter from Mr. Allen, Maurice H. Scans, finance chair- man of the Nixon campaign, confirmed that it was -Mr. Al- len's $89,000 that had ended up in the hands of Bernard L. Bark- er, one of four Miami men who pleaded guilty to breaking into the Democrats' Watergate of- fices here. But Mr. Allen insisted that he would not have given the money if the had known how it would be used. He said that his gift had been routed through Mexico for reasons of "con- venience" and "privacy"-not, as has been charged, to rid the money of traces to, other sources. Mr. Allen told Mr. Stans that because he made his contribu-, tion on April 5,1972-two, days: before the new Federal dis- closure law effect-"I felt, and still do, that under the law I had every right to expect and) enjoy the right of privacy and full anonymity." "It was for this reason, as well as convenience, that I arranged to have the contribu- tion delivered from Mexico," he said. "I realize that this resulted in some embarrassment to you and the committee, in that the press made preposterous and bizarre assumptions concerning the purpose of this procedure. .In actual fact, your committee did not participate in that ar- rangement in any way." Mr. Allen did not explain why: he had requested the refund. Mr. Duncan was an obscure real estate dealer in Bryan, Tex., before he gave $300,000 to the Humphrey campaign last .May and June and instantly be- came the largest recorded con- tributor in the 1972 campaign. It was later discovered that he had borrowed heavily for the Nixon and Humphrey con- tributions but had concealed large outstanding obligations from the banks that lent him the campaign money. Since then, he has been through foreclosure on several large tracts of land in Texas for fail- ure to pay notes. He faces trial in July on a $2.2-million suit by an insurance company over another Texas land deal. OFPA6KTOEB.I. By JOHN M. CREWDSON 8pecl-1 to Tho Now York Times WASHINGTON, March 9 --' John D. ' Ehrlichman, Presi- dent Nixon's chief adviser on domestic affairs, said today that he had personally asked that a White House legal counsel sit in on an interview he had with agents of the Fed- eral Bureau of Investigation about the Watergate case. ' "I have always felt it ap- propriate to have counpA present at an interview o? that kind," he said. "I just felt more comfortable." Asked if he had had any choice in the mat- ter, he replied that "I might have been in a little jeopardy with the employer" if he had refused to allow the counsel, John W. Dean 3d, to be pres- ent. It was previously disclosed that Mr. Dean had sat in on interviews agents had with other White House personnel in the inquiry into the bugging of Democratic headquarters here. Earlier this week, L. Patrick Gray 3d, acting di- rector of the bureau told the Senate Judiciary dommittee that, "from a purely investiga- tive standpoint," he would; rather the interviews had been' conducted without Mr. Dean. At the time of Mr. Ehrlich- man's interview last July 21, Mr. Dean was in charge of a special inquiry ordered by Mr.' Nixon to establish whether any White House personnel had, been involved in the Watergate incident. The President said later he was satisfied that none of them had been. Mr. Ehrlichman also said, at a news briefing today, that he had no knowledge of an ar- rangement, disclosed by Mr. Gray ou Wednesday, whereby a high White House aide had directed the payment of large sums of money to a man ac- cused of directing a political espionage and sabotage ring for the Republicans in the elec-' tion campaign last year. i Mr. Gray told the Judiciary! Committee that Herbert W.' Kalmbach, Mr. Nixon's personal attorney, had told Federal agents that he had made the payments from campaign funds at the direction of Dwight L, Chapin, then the President's appointments secretary. According to Mr. Gray, Mr. Kalmbach said he paid from $30,000 to $40,000 to Donald H. Segretti, a young California lawyer, after receiving a tele- phone call from Mr. Chapin in September, 1971. Yesterday, Ronald L. Ziegler, the White House press secre, tary expressed "concern" at the release of Mr. Kalmbach's ac- count on the ground that it was "raw, unevaluated material" and might violate the rights of the individuals involved to privacy and due process of law. But he did not deny the ac- curacy of Mr. Gray's report. Mr. Ehrlichman expressed the same beliefs today, but, he did not criticize Mr. Gray for releasing it to the committee. The Judiciary Comittee Is considering the nomination of Mr. Gray to hold a permenent appointment as director of the Fedeeral Bureau of Investiga. tion. Democratic members of the committee criticized himm this week for turning over to Mr. Dean more than 80 raw interview reports gathered by agents In ttre Watergate in- vestigation. Asked for Interviews Three reports involved em- ployes of the Committee for ?ho re-election of the President who had asked to t alk to agents in the absence to the re-election committee's lawyers to give information about the, destruction of campaign rec. ords by committee officials shortly after the Watergate case arose. Senator John V. Tunney, Democrat of California noted yesterday that "the same Mr. Dean" had obtained a job at the re-election committee for G. Gordon Liddy, who has been convicted of conspiring to tap Vic Democrats' telephones. Mr. Tunney told the commit. tee today that he was visited this morning by two V. B. I. agents carrying "a number" of the bureau's Watergate files. After reading them, he said, he still planned to introduce a motion next week to call Mr. Dean to testify before the committee. The committee heard today from a number of witnesses who spoke against the Gray nomination. Representative Edward I. Koch, Democrat of Manhattan, who is seeking the Democratic nomination for the Mayor of New York City, said that his ' opposition stemmed from Mr. Gray's refusal to allow him to look at a file the bureau had compiled on him. Mr. Koch recalled that when Mr. Gray last year ended a 22-year program of keeping files on major Congressional candidates, he said that they contained only biographical data from published sources. Mr. Koch and two other Demo- cratic Representatives, Jona- than B. Bingham of the Bronx ,and Benjamin S. Rosenthal of Queens, immediately wrote to 'Mr. Gray asking to see their files. Mr. Gray refused, Mr. Koch said, noting that, shortly after taking over the bureau on the death of J. Edgar Hoover last May, Mr. Gray had asserted that the bureau did not main- tain "'political dossiers." "Based on the fact that they ,are refusing to reveal certain files to members of Congress," Mr. Koch said that he could only conclude "that they do have at least three political dossiers." "Clearly, there is more in that file than si,plply bio- graphical material." he said. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 NEW YORK TIMES 13 March 1973 Eastland Favors Calling Dean to Testify at Hearings By JOHN M. CREWDSON Special to The New York Tdmea WASHINGTON, March 12- James 0. Eastland, the chair- man of the Senate Judiciary Committee, said today that he would vote to call a White House counsel, John W. Dean 3d, as a witness in the com- mittee's hearings on the nomi- nation of ~L. Patrick Gray 3d as director of the Fedilral' Bureau of Investigation. Mr. Dean's name has come up daily during the last two. .weeks of confirmation hearings,i and there has been growing sentiment among Democratic members to invite Mr. Dean to explain the facts behind his' receipt of F.B.I. files compiled, during the Watergate investi- gation. gation. Senator Eastland's support made it virtually certain that the committee, when it met tomorrow in executive session, summon Mr. Dean. The White House reaffirmed today, however, that President Nixon had no Intention of allowing Mr. Dean to appear. Subpoena Opposed Senator Eastland, a Democrat from Mississippi, make it clear that he would not favor issuing a subpoena if Mr. Dean re- fused the committee's dnvita- tor. One committee source said that a vote on issuing a subpoena would be "very close." I NEW YORK TIMES 13 Mn h 1973 r Democrat of California, said have charged that Mr. Gray's ' I t .s last week that he would move willingness to make the F.B. tomorrow to call Mr. Dean- Mr. Watergate files available to Mr. Tunney has said that he will Dean is evidence of a lack of not be able to vote to approve "political independence" on his ,Mr. Gray's nomination with- part. out an appearance by Mr. Dean Mr. Gray has said that he to clarify the latter's "omni- was operating on a "presume= presence" . in the Watergate tion of regularity" in sending case. the documents to the White Mr. Gray told the committee House and that he first passed last week that he had sent them "through the chain of numerous raw reports dealing with the case to Mr. Dean at command" to Attorney General his request. Mr. Gray said. Richard G. Kleindienst. he had done so because Mr. The committee made public Dean had been selected by the today an opinion by the bu- President to head a separate reau's legal counsel, requested investigation to determine by Mr. Gray last July, "on thej whether any White House per-., legal basis for dissemination, sonnel had been involved in, by the F.B.I. to the White the break-in at the Democratic House of information concern- headquarters in the Water- ing a criminal case being in- gate complex last June 17. vestigated" Mr. Tunney disclosed last The opinion concludes that week that "the same Mr. Dean" "the authority and the obliga- secured a job on the 'Nixon tion of the F.B.I. are to keep campaign staff for G. Gordon the Attorney General fully in- Liddy, who was recently con- formed and to leave the rest victed of conspiring to tap to hint". telephones in the Democratic This portion was underlined heTherelters. by Mr. Gray and carries the There have also been reports nciled notation to "do so In the E. Howard Hunt Jr. who penciled particular case and in all pleaded guilty to the same charges in January, attempted future cases. to seek legal assistance from The committee concluded to- Mr. Dean shortly after the day day the portion of its hearings five men with bugging equip- dealing with the testimony of ment were arrested inside the public witnesses. headquarters. The United Auto Worker's Democratic Senators, led by general counsels, Stephen I. Mr. Tunney and Edward M. Schlossberg, asked the com- mittee to hold a decision set up a decision to the Gray nomination until a special Sen- ate committee set up to inves- tigate the Watergate case had completed its work, so that! the Senators would have be- fore them "the full record of Mr. Gray's conduct of the in-i vestigation of that sensitive matter." Another witness, Edward Scheidt, who retired 20 years ago after a 21-year career as an F.B.I. agent, told the com- mittee that he was disturbed by indications in some of Mr. Gray's speeches that , if con- firmed Mr. Gray might draw the traditionally nonpartisan ibureau into politics. Mr. Scheidt, who was once do charge of the F.B.I.'s New iYok City office, urged the com-1 imittee to tell the White House to "send us another name; you can do better 'Chan that.'At the White House brief- ing today, Ronald L. Ziegler, the President's press secretary, said that Mr. Nixon did not wan to withdraw the Gray nomina- tion, and he added that there was "no validity" to a report by Newsweek magazino that the capital's police chief, Jerry V. Wilson, had been chosen as the White House's back-up nominee if Mr. Gray was not confirmed. possibility that their advice and assistance will ever be. come a matter of public de- bate,. either during their ten- ure in government or at a 'later date. Otherwise, the candor with which advice is rendered and the quality of such assistance will inevita- bly be compromised and, weakened. What is at stake, there. fore, is not simply k ques- tion of confidentiality but the integrity of the decision- making process at the very highest levels of our govern- ment. . As I stated in my press conference on Jan. 31, the question of whether circum- stances warrant the exercise of executive privilege should be determined on a case- by-case basis. In making such decisions, I shall rely on the following guidelines: 1. In the case of a depart- ment or agency, every official provided that the perform- ance before the Congress, provided that the perform- ance of the duties of his of- fice will not be seriously im- paired thereby. If the official believes that a Congressional request for a particular docu- c Nixon Remarks on Executive Privilege WASHINGTON, March 11, -Following are excerpts from a statement issued to- day by President Nixon on his use of executive privi- lege: The doctrine of executive' privilege is well established. It was first invoked by Presi- dent Washington, and it has, been recognized and utilized by our Presidents for almost 200 years since that time. The doctrine is rooted in the Constitution, which vests "the executive power" solely In the President, and it is desinged to portect com- munications within the ex- ecutive branch in a variety of circumstances In time of both war and peace. Without such protection, our military security, our re- lations with other countries, our law enforcement pro- cedures and many other aspects of the national inter- est could be significantly damaged and the decision- making process of the execu- tive branch could be im- paired. The general policy of this' Administration regarding the use of executive privilege during the next four years will be the same as the one we have followed during the past four years: Executive privilege will not be used as a shield to prevent embar-. rassing information , from being made available but will be exercised only in those particular instances In' which disclosure would harm the public interest. 'Pledged to Openness' During the first four years of my Presidency, hundreds of Administration officials spent thousands of hours testifying before committees of the Congress. Secretary of Defense Laird, for instance, made 86 separate appear- ances before Congressional. committees, engaging in over 327 hours of testimony. By contrast, there were only three occasions during the first term of my Admin. istration when executive privilege was invoked any-, where in the executive branch in response to a Con- gressional request for infor- mation. These facts speak not of a closed Administration but of one that is pledged to openness and is proud to stand on its record. Requests for Congressional appearances by members of the President's personal staff present a different situation and raise different considera- been relatively infrequent 'through the years, and in past Administrations they have been routinely declined. I have followed that same. tradition in my Administra- tion, and I intend to con- tinue it during tl remainder of my term. Under the doctrine of separation of powers, the manner in which the Presi- dent personally exercises his: assigned executive powers is not subject to questioning by another branch of govern- ment. If the President is not subject to such questioning, it is equally inappropriate that members of his staff not be so questioned, for their roles are in effect an exten- sion of the Presidency. Loss of Candor Feared This tradition rests on more than constitutional doc- trine: It is also a practical necessity.-To insure the ef- fective discharge of the exec- utive responsibility, a Presi- dent must be able to place absolute confidence in the advice and assistance offered by the members of his staff. And in the performance of their duties for the Presi- dent, those staff members must not be inhibited by the Approved or Ft~efease`6t6 1M007: CIA-RDP77-00432R000100120001-3 meat or for testimony on a particular point raises a sub- stantial question as to the need for invoking executive privilege, he shall comply with the procedures set forth in my memorandum of March Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 a substantial question as to the need for Invoking exec- utive privilege, he shall com- ply with the procedures 'set forth in my memorandum of. March 24, 1969. 3. A member or former, member aof the President's personal staff normally shall follow the well-established precedent and decline a re- quest for a formal appear- ance before a committee of the Congress. At the same time, it will continue to be my policy to provide all nec- essary and relevant informa- tion through informal con- tacts between my present staff and committees of the Congress In ways which pre- serve Intact the constitutional separation of the branches. tage to a decision on Mr. Dean," the President said: "I cannot believe that such res- ponsible members of the United States Senate, would do that :.. " But Mr. Nixon left no doubt that he would sacrifice Gray's nomination rather than pro- duce his White House counsel for testimony, "My decision has been .made," the President said in regard to any congression- . al appearance by Dean. "Perhaps this is the time to have the highest court of this land make a definitive deci- sion with regard to this mat- ter," the President said, ad- cling: "I am not suggesting that, we are asking for it, But I would suggest that if the mem-. hers of the Senate, in [theirJ wisdom, decide that they want to test this matter in the courts, we will, of course, pre- sent our side of the case, and we think that the Supreme Court will uphold, as it always usually has [sic], the great constitutional principle of sep- aration of powers rather than to uphold the Senate." On Capitol Hill, the Pres- ident's remarks appeared to have the effect of jeopardizing even further Gray's nomina- tion and intensifying the in- ilcnged members of Congress rr~ to go to the Supreme Court as the only means of obtaining testimony from White House aides, particularly presidential counsel John 1V. Dean III, The challenge was imme- diately accepted by angered members of both parties on Capitol hill, including the elrahninn and ranking Itepuh- tican member of the special Watergate investigating com- imittee, During a press conference, the President also moved to restrict the Watergate com- mittee's access to Federal Bu- reau of Investigation records of its probe into the bugging of Democratic Party livid- quarters. He implicitly crit- icized acting FBI Director L. Patrick Gray III for already supplying such information to the Senate Judiciary Com- tnittce. Under no circumstances,, Mr. Nixon said, would he per- mit Dean to testify in either the Watergate investigation or in the current Judiciary Com- mittee hearings on Gray's nomination' to be permanent director of the FBI. Observing that the Senate "might hold Mr. Gray as hos- privilege will not he invoked until the compelling need for its exercise has been clearly. demonstrated and the re- quest has been approved first by the Attorney General and then by the President.. then by the President. ' J , 2. A ',Cabinet officer or any other governmental 'official who also holds a position as a member of the President's personal staff shall comply with any reasonable request to testify In his non-White House capacity, provided that the performance of his duties' will not bo seriously Impaired thereby. if the official be- lieves that the request raises WASHINGTON POST 16 March 1973 Executive Privilege', Reaffirmed By Carl Bernstein and Bob Woodward Washington Post Staff Writers President Nixon an- nounced emphatically yes- terday that he will prohibit any member of the White house staff from testifying in the 'Senate's upcoming investigation of the Water- gate case or any other "for- mal session" of a congres- sional committee. creasingly bitter struggle be. tween the President and Con. greys over the separation of Gradually, the focus of ,Gray's confirmation hearings has been shifting away from the nominee and toward the issues of executive privilege and the White House role- particularly Dean's-in the ,FBI's Watergate investigation. " Leaders of the move to call can as a witness have'said Choy believe they can block the Gray nomination in the .tudiciary Committee if the President's counsel does not (estify, Sen. Lowell P. Weiker, a Republican from Cray's home State of Connecticut, saw, }}can's appearance in the Gray Bearings as a side issue andl added: "But in the case of the, 11'atergate the White House] staff is not a side issue. The; i5eople around the President phd in the White Douse are the issue." ~ Asked if he would vote to subpoena Dean or other presi- dential aides in the Watergate lvestigation, Weicker said, ., bsolutely." t? The question of Dean's testi- mony before Congress has be- come an issue because of tray's agreement to turn over idhvestigative reports to 'the White House counsel during the FBI's Watergate investiga- tion. Members of the Judici- at-y Committee have question- 10 the propriety of Gray's de- cision and want to determine it Derrn misused the informa- tion he received from the Flll. "In his remarks at the White house yesterday, President Dixon said Dean and 'ot:ier members of the White ;louse staff "will furnish information under the proper circum. stances" to congressional com- mittees - presumably by an- 4lvering questions in writing, ' In addition to closing the door on testimony by his aides, the President said that "the tlractice of the FBI furnish- ii)g 'raw files' to full commit- tees must stop" with the re- nt release of information by Gray to the Judiciary Commit- tee. .k' "I understand why Air. Gray (D d, because his hearing was involved," Mr. Nixon said. "I3ut I would say that should not be a precedent for the fu- ture." ,, Last week, Gray released in. formation showing that the I)resident's personal attorney avid his appointments secre- tary had arranged for the pay- ment of $30,000 to $40,040 in Nixon campaign funds to Don. 4Id H. Segretti, an alleged po. lil.ical saboteur. pBoth of yesterday's state- merits about White House aides and FBI files will effec- tively limit the extent to Which the upcoming Senate investigation of the Watergate case will be aided by the ad- ministration. Sens. Sam J. 'Ervin Jr. (D- N.C.) and Howard H. Baker Jr. (R-Tenn.), the chairman and ranking minority number of the special Watergate investi- r#pting committee, said the in- quiry would be seriously ham. p red by the President's ac, lions and said they would go td court, if necessary, to fight tie restrictions. "If we get information indi- cating that any White I-louse aide has any knowledge rele. vbnt to this investigation I will certainly recommend to the committee that he he spbpocnacd,'' Ervin said, add. iiir: 1 "if ' he fails to appear or r fuses to give information after his appearance, I will recommend to the Senate that hp he adjudged in contempt t~ the White House, said: "I'm disappointed at the President's statement, I had hoped early on for a successful accommo- d ition . , . to get all the rele- vant facts." Regarding possible testi- mony from Dean before the special Watergate investigat- ir'tg committee, Baker added: not prepared to say I'd bb satisfied With written ques- tions only. . . At the moment. .r 9y personal inclination is to t"sists on a personal appearance: It we can't' negotiate a way around this impasse, the only V ?ay is to litigate It.,, :, Ervin said yesterday that he feels the 1'resldent's slatr.- rnent about Vill I""ilea was fie- signed to curtail, if not cut riff, his committee's access to itiportant data. Although the President in- c8cated he did not object to the FBI showing "raw files" to committee chairmen and e ranking minority member,, Irvin said that in the Water-: gpte probe such a limitation mould be "unacceptable," '. "It would take clays to go through those files," Lrvln said. "I don't have the time. The staff has to do it," If the President's statement that raw files should not be furnished. to a full committee is translated into action, it would put the decision in direct conflict with the Senate resolution that established the Watergate select committee, That resolution, which pass. ed the Senate Feb. 7 by a 77-to-o vote, grants all seven senators. on the select corn- mittce and at least two staff members access to the FBI's voluminous Watergate files. The President's statement Yesterday also seemed to counter earlier statements by Gray, who told the Judiciary Cominittce considering his nomination that all tQ mem- bers could look at the- raw files. At least two members have already accepted the of- fer and looked at some of the files. Cray had said that he would, cooperate fully with the Ervin select committee Investigetlorti and did not quarrel with the provision allowing two staff' membera access to the FBI M- By his statements Yesterda ; President Nixon indicated that' he Was primarily concerned, that information in FBI files involving what he called "hear-J say," "guilt by innue'ndo" and "guilt by association" might be; made public and leaked to they press. During his testimony lash week, Gray released informa?! Lion in FBI' files that showed, that Iierhert 1V. Kalmbach, the; President's personal attorney,l and Dwight L. Chapin, the Pr id ' ' es ent s former appoint- of Congress and that;the Sen? meats secretary, arranged for. ate ask the Department of the payment of more than $30,-' .1lrstice~ to appoint a special, 000 to Segrctti, a California at-1 lrt?osceutor to prosecute the, torney. individual-I don't care who, ]Theeased information hp rs ! was nformati based on on aGraystatere--- SBaket.. who has close tdesi went givrn to the FBI by! Approved For Release 2001/08/07 : C1A-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Kalmbach and could not be' classified as a "raw, unevalu-i ated file," according to Justice! Department sources. Spokesmen for both the Jus- tice Department and 'the FBI had no comment yesterday on whether the President's stated position would cause; Gray to modify his offer to either the Senate Judiciary Committee or the Ervin select, committee. The White House' also'- had nol additional comment. The initial offer to make the FBI Watergate files avail-! able to the; Senate was, made in January by Attorney Gen- eral Richard G. Kleindienst, who at the time specified thatf there would be some limits= tions placed on ,what could be made public. In addition to closing offl the Senate's access to FBI files and his White House aides, President Nixon said! that he and his press'secre- tary, Ronald L. Ziegler, would make no more comments On the Watergate investigations. "I could comment on them," Icr could in the future. I, will not. -He will not. And the reason that we will not is that when the committee. completes its Investigation, we" will then have comments, if we consider it appropriate to do so." The President said that he- would cooperate fully with the Senate other than allow- ing the direct testimony of his aides. "I have confidence in all of the White House people who have been named," the Presi= dent said in apparent refer. ence to the allegations in press reports that some of his closest advisers were involved in a campaign of political es- pionage and sabotage. The President also said that officials from his re-election committee do not have an executive privilege to refuse to testify before the Ervin se. lect committee. With specific reference to former Attorney General John N. Mitchell, the President's campaign ' manager, and for- mer Commerce Secretary Mau- rice It. Stars, the chief fund 'raiser, Mr. Nixon said: "None of them have the privilege, none of them, of course, will refuse to testify, none has when he is asked to, and I am sure they will give very good accounts of there. selves, as they have in the court matfers'that they have been asked to." In a pretrial deposition by Mitchell, the former Attorney General refused to answer cer- tain questions about discus. sions of the Watergate bug- ging, claiming the attorney. client privilege. Yesterday's developments also left a confused situation In regard to the withdrawal of Ervin's request for access to the transcript of the federal grand Jury inquiry into the Watergate bugging. In a letter to Chief Judge Approved_For Release 2001/08/07 WASHINGON POST 20 March 1 7 .en Unit .Answers es s Legal Brief By Lawrence Meyer Washington Post staff writer Lawyers for President Nix-date the free press of this ' on s re-election committee at- tacked yesterday statements made in a legal brief filed on behalf' of The Washington Post as being "in poor taste" and "outrageous." The response by lawyers for the Committee for the ' Re- Election of the President, di- rected at The Post's brief and also separate briefs filed by three other publications, was filed yesterday in U.S. District Court. Reporters and officials of the four publications-The Post, The. New York Times, The Washington Evening Star- News and Time Magazine- have been served with com- mittee subpoenas demanding that they make available all notes, story drafts and other documents Way have concern. ing the Watergate incident. The re-election committee is being sued by the Democratic National Committee for inva- sion of privacy damages grow- ing out of the break-in and bugging of the Democratic Party's Watergate headquar- ters by employees of the re- election committee. Re-election committee offi- cials have tiled countersuits for abuse of court process and libel against former Demo. cratic Party Chairman Law- rence F. O'Brien. The publications last week filed with U.S. District Judge Charles R. Richey their op- position to the re-election com- mittee subpoenas, arguing that complying with the demand would force them to reveal confidential sources, irrepar- ably damage their ability to pursue investigative reporting and violate First Amendment rights to freedom of the press. The Post also asserted that the re-election committee ,is the political arm of the Presi- dent of the United States" and that the subpoenas "are part of an attempt by.the incum? bent administration to intimi- John J. Sirica of U.S. Districtl Court here, Ervin said he II would not need the transcript because of Gray's promise to provide the committee with all of the data collected by1 t h e e FBI in its investiga-' tion .. , WASHINGTON POST 17-March 1973 Bug Ca'se Accord 10 lCt, Recaklhud By Lou Cannon Washington Post staff Writer The Nixon administra- tion and the Senate select -committee pro b i n g the Watergate bugging c a s e reached a compromise. yes- terday that Sen. Sam J. Er- 1vin Jr. (D-N.C.) said wouldi allow lihe committee the "full benefits" of the FBI's Watergate investigation. Sources close to the commit. tee said that the compromise, details of which were not pub- licly announced, would allow 'the two top staff members of the investigating committee i access to the FBI raw files on the Watergate case. But the only senators on the seven- member committee who will be permitted to see the files are Chairman Ervin and Sen. Howard Baker (R-Tenn.), the ranking minority member. The President said at a news conference Thursday "that tho practice of the FBI furnishing raw files to full committees must stop." He said_he did not object to showing these files to the committee chairman and the ranking minority member. Ervin objected, however, that th;s procedure would make, it difficult for 'him to proceed with the investigation. "It would take days to go thiough those files," Ervin said. "I don't have the time. The staff has to do it." The resolution ' establishing the Senate select committee, passed unanimously by the Sen- ate, grants all seven senators and the two staff members ac. cess to the files. Both the administration and the committee backed down from their original positions yesterday in negotiations among Attorney General Richard Kleindienst, Ervin and Baker. The administration, while remaining adamant on with. holding the files from the full committee, agreed to allow their inspection by Samuel 'Dash, the staff director and majority counsel, and Fred Thompson, the minority coun- sel. Both will be strictly sworn to secrecy. The agreement, Ervin and Baker said in a joint statc-i ment, will give the committee' "the full benefit of the results of the FBI investigation con- cerning the Watergate inci- dent and other matters related to the 1972 presidential cam- pal gn." One of the senators on the Ervin committee. Joseph M . country , .." . In its response yesterday, the re-election committee law- yers said, "These parties un- abashedly accuse the Presi- dent of the ),Tnited States and these defer nts of the most unscrupulous sort of conduct, but by their very words re- veal their own political ani- mosity and misguided actions. The defendants resent these unfair accusations." The re-election committee brief said that its lawyers, "in the best interest of their` cli- ents, have attempted to dis- cover. evidence relevant to the cases at hand, and to this end have caused subpoenas, to be issued to certain material witnesses--who happen to be journalists. 'Tor this honest effort the defendants have incurred the wrath ' of The Washington Post, the self-styled 'news- paper which has dared to let the American public know' and have opened themselves to more ridicule and charges of political Intrigue," the re. election committee brief said. Addressing . the arguments of all four publications and the Reporters Committee for Free-, dom of the Press, the re-elee?' tion committee brief said, "Reduced to bare essentials, the plea of these (parties) Is a unified demand of the Fourth Estate for exemption from the duty to appear and give testi- mony in virtually all civil liti- gation. "The public's right to know the whole truth, and the par,' ties' right to ascertain it by accepted means" of litigation, the re - election committee's brief said, "go to the very core of our adversary system. The juries in these cases should not be denied. the testimony of essential witnesses." . A hearing is scheduled Wednesday concerning the subpoenas. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 THE WASHINGTON POST Wednesday.Afar.21,1973 Montoya (D-N.M.), s a I d he suspected Klcindienst of an "ulterior motive" in withholding the FBI files from the full com- mittee. ,,,It is my feeling that every member of the committee needs all the information the FBI has collected in order to place the' Watergate matter in proper{ perspective," Montoya said. Hours before the 'compro- mise was announced, -White House press secretary Ronald L. Ziegler indicated that Act- ing FBI Director L. Patrick Gray III would be expected to withdraw his offer allowing the full Senate Judiciary Com-, mittee to inspect the Water- gate files. Citing the President's state-. .merit of the day before, Zie- gler said "individuals in the government traditionally, take guidance' from ? what the President says. Cray offered the files to the full Judiciary Committee last week during hearings on his confirmation as FBI director. Only two senators have ac- tually inspected them, Sen. Roman liruska (11-Neb.), who spent more than six hours looking at files, and Sen. John Tunney (D-Calif.), who in- spected three specific files for a half hour. While reiterating the Presi- dent's opposition to Senate in- ';{ xpection of raw FBI files, Zie- ,Kier also proipised administra- tion cooperation with both committees and hinted at one point that a written report by White House 'counsel John W. Dean III on 'the Watergate case might be made available.. Mr. Nixon has refused to al- low Dean to testify before the Judiciary Committee, but Zie- gler ,has said that he will an- i swer "relevant" questions in writing. Dean has not yet been' asked to testify by the Ervin committee. Asked yesterday whether ,Dean's written report on the ;\Vatergate case would he made available to the Senate committees, Ziegler declined to answer specifically but said "the objective of the adminis- tration will be to cooperate and provide the facts and pro- vide relevant information and details that the committees want." President Nixon maintained In his Thursday news confer- ence that he was upholding -the traditional constitutional doctrine of separation of pow- ers between the executive and legislative branches in declin- ing to allow his aides to tes- tify. lie defended withholding of the FBI files on grounds they contained hearsay that made available to the Senate "could do innocent people a great deal of damage." Ziegler was asked yesterday about the example of Sherman Adams, personal adviser to President Eisenhower, who agreed to testify voluntarily .before a Scnato committee In G y. o.nl Data L By Bob Woodward and Carl Bernstein Washington Post staff writers Acting FBI,director L. Pat- rick Gray said yesterday that he had been "called on the carpet" last year by two of President Nixon's top advisers for leaks of information in the Watergate bugging case. Two days atfer Ehrlichman'sj ter The first call, Dean called Gray , ported that about "rumors of leaks of FBI information," according to Gray's written answer. About six hours later that day, June 23, Gray id he called Dean back to deny that information was being leaked from the FBI. Gray introduced records into the testimony at his con- firmation hearings before the Senate Judiciary Committee showing that he met or talked with Presidential counsel John W. Dean III and John Ehrlich- mah, the President's top do- mestic adviser, at least 15 sepJ arate times about leaks during a four-month period 'before the election last year. . Gray's records indicate that news leaks were, in fact, the major topic of discussions about the Watergate investiga- tion between Gray and the White House. The telephone calls or meet. ings generally came soon after news stories about the al- leged involvement of former or present White, house aides in the Watergate bugging' or ,in a reportedly broader cam- 'paign of political espionage: against the Democrats. "I resented it," Gray said ,yesterday, "because I don't think there were those leaks within the FBI." Gray sug- gested that the leaks may have come from the U.S. attor- ney's office or the grand jury investigating the Watergate. The first call about the leaks came from Ehrlichman the morning of June 21, the day after the first report ap- peared linking White House Iconsultant E. Howard Hunt Jr. with the Watergate break-in June 17. In the written information supplied to the Judiciary Com- mittee. Gray noted the date of Ehrlichman's call (June 21), the time (9:35 a.m.), and added that the call concerned "safeguarding investigative .procedures against leaks." Gray said he "advised we were handling the case as a major special with usual precautions for such a case and (had) very On June 28, the day G. Gor- don Liddy was fired as fi- nance counsel from the Presi- dent's re-election committee for refusing to answer FBI questions about the Watergate, Gray was contacted by Dean about leaks and talked by telephone and met with Ehr- lichman about "safeguarding investigative proceduies against leaks," the written statement says. Liddy's dismissal was not an- nounced at the time and did not become public until more than two weeks later. Liddy, Hunt and five other men ei- ther pleaded guilty or were convicted at the Watergate trial in January. Gray apparently was not contacted- by either Dean or Ehrlichman during the entire month of July, a period in which relatively few news ac- counts of major significance appeared on the Watergate. The White House contacts resumed with a call from Dean to Gray on Aug. 2, the day after the first news report saying that a $25,006 Nixon campaign check had been de- posited in the bank of one of the Watergate bugging sus- pects. The call, according to Gray's written testimony, was about "leaks of FBI informa- tion." The next contact about leaks by Dean was made Sept. 19, the day after the first news report that two high officials in the Nixon campaign organi- zation had received large cash disbursements from a fund used in part to finance an in- telligence-gathering operation against the Democrats.' Gray was in Kansas City, according to his documents, and Dean telephoned him there. In addi- tion, Dean called Gray- again about leaks the next day, Sept. 120. covered a White House di- rected campaign' of political spying and sabotage against the Democratic presidential contenders. According to Gray's records,. "Jean called him at 9:05 a.m. on Oct. 18 and 25 minutes later appeared at Gray's office to discuss the news leaks. This was three days after the first', news accounts saying that at-' Ieged political saboteur Don- ald H. Segretti was hired by, the President's appointments secretary, Dwight L. Chapin. The next day, Oct. 19, Ehrl? ichman talked by telephon6, and met with Gray about, leaks of information. The last contact by Dean' concerning leaks was made Feb. 2, according to Gray. This, was the day after Sen. Edward . M. Kennedy (D-Mass.) released a report saying that an investi-; gation by his subcommittee. had uncovered evidence indi-, eating White House involve-. ment in "n wide range of espi- onage and sabotage activities"q during the 1972 presidential campaign. Gray said the Feb. 2 contact by Dean also concerned an "FBI request to interview Mr. Chapin." This was four days after Chapin announced that he was resigning from the. White House staff. Chapin had been earlier interviewed by, the FBI. It could not hq learned yesterday why the FBI might have wanted another interview with Chapin after Feb. 2. The Watergate bugging trial was completed on Jan. 30. According to federal sources, the FBI conducted se- veral internal investigations during its Watergate inquiry to determine if FBI agents were the source of news ac- counts. Similarly, Dean report- edly attempted to determine if members of the White House staff were providing informa- tion to the press. At the Committee for the Re-election of the President, according to employees there, the entire staff was Instructed not to discuss the Watergate case with the press and se- veral internal investigations restricted distribution of in-1 Dean also called Gray about were conducted to identify po- formation." I leaks on Oct. 12, two days af- tential leaks. response to allegaIinns that her threatened to hold up Gray's had used his White House pos. confirmation unless Dean tes- ition improperly in behalf of tifies beore the committee. industrialist Bernard Godfine. Mr. Nixon has said he will '.,I am not going to parallel not back down on his invoca. the two situations," Ziegler re- iron of "executive privilege" sponded. "I do not think I for Dean even if the Senate have to." holds the Gray nomination Senate Democrats have "hostage." -,Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved f THE WASHINGTON POST CIA Analyst days U0& B'raed To St1i Him By Sanford J. Ungar Washington Post Staff Writer An analyst for the Central In- When he first read. news- telligence A g e n c charged reports of testimony to y thO contrary from a prosecu. under oath today' that there tion witness, Lt. Gen. William on the part of the government superiors to send internal CIA to prevent me from testifying" as a witness In the Pentagon Payers trial. Samuel A. Adams, who was subpoenaed to testify in de- fense of Daniel Ellsberg and Anthony J. Russo Jr., said that his superiors at the CIA "lied" to him in an effort to disisuade him from appearing in-federal court here. After learning of dealings petween the Justice Depart- ment prosecutors in this case and 'an assistant CIA general counsel, Adams told the jury, he' came to the conclusion that "I. had been had." The unusual testimony was tho first inkling the jury has had of defense, allegations that the prosecution In this case ha4 "suppressed" evidence and tried to "silence" Adanis as a witness. U.S. District Court Judge W. Mott Byrne Jr. prohibited Art- ems from: discussing some as- pects of the situation-indlud- ing matters that have previous- ly occurred in court out of the presence of, the jury-but ad, mitted the testimony on the narrow issue of whether Ad- ams is ''biased or prejudiced" against either side i11 the case. That was the impression which chief prosecutor David R, Nissen sought to give dur- In,; extended cross?e mi ~? n memoranda he had Written on the "order of battle" to the Justice Department for trans- mission to the court here. The intelligence analyst'felt that he had evidence which might tend to establish the )innocence of the defendants -namely, that U.S. military !officials had intentionally un- t derestimated the opposing ,forces in Vietnam in order to i create "the impression that there was light at the end-of the tunnel." Questioned by the judge this afternoon, Adams said he was "advised by assistant CIA General Counsel John K. Greaney that his mem- randa had been submitted to the court, only to learn later that they had not at the time actually, been turned over to; 'the judge. Greaney told Adams in al written memo on Feb. 9 that,I according to a message trans-, mitted from Nissen through, 'the Justice Department, the judge had decided the ma- terial was not "exculpatory"' and so there would be no, need for the Adams testimony] here: On the basis of that advisory, .Adams said today, he decided to ? "desist" from his efforts . to bring the evience before lion of Adams today. chronic complainer within the jpcrin, a former Defense De- CIA. who once accused top military officials of being in a, "conspiracy" to fabricate data on ' Vietnamese Communist! Adams has held that view for several years now, and that was the thrust of his original testimony for Ells-i documents being "dated" at the time, Adams testified? ally useless" If they had fallen 1 sultant to the defense attor- neys here, that Adams learned this information was "inaccu- rate," he testified today. The prosecution has denied that it made any attempt to suppress Adams' evidence, and C=reaney-in an affidavit submitted to the court two weeks ago-said the allegation, that he sought to persuade the CIA analyst not to testify was "absolutely false." Adams has now been on the witness stand for three days; far longer than originally anticipated, and this has de-' layed the testimony of 111e-t George Bundy, who was na? tional security adviser to the late Presidents Kennedy and Johnson and is now president NEW YORK TIMES 21 March 1973 my ,r1rnnaa1V n1%1NVJ4J } Spectei to The New York Ttmef LOS ANGELES,-March 20- -.The late Ho Chi Minh would have had to -telephone the De- fense Department to' determine whether one of the "top secret" . documents, in the Pentagon papers trial was enuine, a de= fense witness testified today. The witness was William G.; Florence, who spent 43 yearst as an Air Fo'-'e officer and a^ civilian woring in ? Federal bureaucracy on the classifica-' tion of Government secrets. During long cross-exalnina-' Lion from David R. Nissen, the chief prosecutor, Mr. Florence said that one of the documents in this case, a 1968 Joint Chiefs of Staff memorandum,. would have been virtually useless to foreign intelligence because there was nothing in the docu- ment dtself to authenticate wheter it was genuine; "It could have been counter- felted?" Mr. Nissen asked. "It could be a counterfeit,". Mr. Florence replied. "You mean he'd' have to telephone and say, 'This is Ho ,Chi Min; I'd like to know .whether this is, genuine?"' Mr. Nissen asked. "if he wanted to do it [to ' 1ctowJ I'm sure he would," answered Mr. Florence. Indirect Defense Route Mr. Florence, who has been testifying for several days,' squinted through his black rimmed glasses at the jury and the prosecutor, rattling off the: various divisions and sub 'divisions of the Government's. classification regulations. He was there mainly to at- tack the Government's system of classifying documents, but United States District Court Judge William Matthew Byrne Jr. has refused to allow Daniel Ellsberg and Anthony J. Russo Jr., the defendants,'to mount a direct attack on the system. As a result, Mr. Florence is at- tempting to do it indirectly. ' His answers were long and, convoluted,, and the judge often interrupted him to keep brim to the point. .The essence of his testimony was considered extremely im- portant by the defense. It was to the effect that there was no real way to tell whether the Pentagon papers were properly classified "top secret-sensitive" when they were compiled in 1967, let alone when they were allegedly stolen by Dr. Ellsberg in 1969. There were many reasons for this, he said, including the fact of the Ford Foundation. It was also revealed in court today that the defense had. subpoenaed a recently retired Army colonel, Gaines Hawk?i ins, of West Point, Mississippi; to corroborate Adams' testi=s mony on the alleged fabrica. tion of the "order of battle" but that Hawkins on arrival in Los Angeles had declined to cooperate with defense at- torneys and had been dis-I tmisscd from the subpoena, i Derivative Classification ? testified, then the papers were classified under a Defense De- partmnt procedure called de- rivative classification, that is, a system under which a docu- ment receives the classification of classified research material, even if that material is only a single sentence that had been previously classified. Mr. Florence, over several days, had insisted there was no way of 'reading the Pen- tagon papers to tell whether its source material was properly classified;. if the source material was not prop- erly classified, then Curely the papers themselves were note either, the defense contends. In a sense, Mr. Florence's testimony was aimed more at the judge than the jury, for the defense is attempting to subpoena the source material used In compiling the Pentagon papers. It, through the develop- ment of Mr. Florence's testi- mony,'.- Judge Byrne is propmpted to grant that sub- poena, then the defense might succeed also in prompting ..the judge to allow it to attack the classification system di- rectly. So the battle between the consultant and the prosecutor stretches over the hours, with the former holding to the point that he cannot tell without the source material whether the papers were properly classified and the latter trying to make the witness appear foolish. Mr. Nissan asked 'whether In the absence of any official communication covering the Pentagon papes, the papers did not authenticate them- selves. "They do not for me," re- plied Mr. Florence. Dr. Ellsberg and Mr. Russo are accused of six counts of espionage, six counts of theft and one count of conspiracy. WASHING IrJN POST 9 March 1973 ITT Deities Con.nectian With Watergate Figure International Telephone and Telegraph Corp. yesterday de. nied that it had any connec. tion with any of the Watergate defendants as was alleged, In a column by Jack Anderson Thursday. In a statement from New York, R. G. Bateson, associate general counsel of ITT, said that the allegations In the column "are completely inac- curate and untrue." "ITT never hired E. How- ard Hunt or any so-called 'Miss Sion Impossible team.' There Is no link between ITT and any of the Watergate defend. ants, or break-ins of the Chilean embassy or Chilean diplomat's residences," Bate: son said. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 NEW YORK TIMES 21 March 1973 Anarchy of Diplomacy ? By James Reston WASHINGTON-Secretary of State Rogers has begun a quiet but intensive inquiry into the problem of protecting American ambassadors and their staffs in foreign capitals from the outlaws who are now terrorizing the diplo- matic community. This is now a worldwide problem.- For the Arab terrorists are beginning to avoid the major capitals of the world,. where U.S. embassies have fairly good security forces, and are concentrating on less prominent cap- itals, where it is easier to kidnap American .officials and hold them as hostages for the release of Arab out- laws elsewhere in the world. Some fairly obvious protective meas- ures have been taken, with the help of the C.T.A. and the Pentagon, since two American diplomats were cap- tured and assassinated recently in Khartoum, the capital of the Sudan. More security officers have been and from now on, they will not only travel ?with U.S. ambassadors wher- ever they go, but will also help pro- tect their families. Also, new bullet-proof cars are being provided for all embassies, and the U.S. Government is emphasizing that security for U.S. officials and their families is the primary respon- sibility of the home government. Secretary Rogers has also been pointing out to these governments that, this wave of kidnapping will never be stopped so long as the people who commit these crimes are permit- ted to go free. Of all the criminals .involved in attacks on foreign'embas- sles in recent years, only one is still in jail. All the rest have been released, including the Arabs who survived the attack on the Israeli, athletes at the Olympic games in Germany. Accord- ingly, Mr. Rogers is pressing for the death penalty for those engaged in diplomatic kidnapping, though this penalty is against the law of the United States. 13 These precautions, however, do not satisfy Secretary Rogers or the U.S. Foreign Service officers, who now head about 70 per cent of the 130- plus American embassies overseas. Mr. Rogers points out that protecting all U.S. personnel in all embassies is a mammoth job, and total security can- not therefore be guaranteed. Also, some Foreign Service officers are critical of the Nixon Administra- tion's method of handling a crisis when American officials are kidnapped and held for ransom. The policy is to handle each case as best the Govern- ment can, but in general to avoid being "blackmailed," even if this means risking the lives of the.captured American officials. Most foreign governments holding prisoners whom the kidnappers want WASHINGTON released approve of this policy, which, is generous to them but not to the kidnapped Americans. Golda Meir, the Prime Minister of Israel, recognized the American Government's dilemma when she was in Washington the other day. This anarchy in' the diplomatic world will not only go on, she said, ,but it will probably get worse. The attacks are likely to take place in the smaller capitals, she observed, and it is not impossible that the wives and children of diplomats will be seized one day. Then, she asked, what will you do?, Secretary Rogers' answer to this is that much stricter security measures will soon be in effect, not only for U.S. officials overseas, but for their families as well. Obviously,. there is no satisfactory answer to this problem, but at ]east this crisis in the diplo- matic community should remind us of the service of these officials and their families. 13 Henry Kissinger gets all the head- lines on the spectacular missions to Peking and Moscow, and the American ambassadors'in London, Paris, Rome? and Tokyo are, fairly safe and fancy; but the State Department and the For- eign Service officers still have to deal with most of the drudgery of Anieri- . can foreign policy, and now most of the physical risks as well. Diplomacy has been transformed' by the fast jet airplane and by instant communications via the satellite and the computer, and the copying, ma- chines that distribute an ambassador's dispatches quickly through the Wash- ington bureaucracy. When the head of an American mis- sion abroad reports something really important in his capital, the chances are somebody from Washington will be sent out to deal with it. The rest of-the, time, the ambassador is left with the routine dog-work, and the social rou- tine, which may be more injurious to his health than kidnapping. Ironically, about the only place where an American ambassador is rea- sonably safe these days is in the ma- jor Communist capitals of the world. In Haiti, or the Sudan, or Austria, he may be kidnapped any night on his way to a birthday party, and held for the release of political scoundrels thousands of miles away, and nobody here quite knows how to deal with this anarchy. Secretary Rogers can give them bullet-proof cars and more Marines at the U. S. embassy door, and the Presi- dent can proclaim that he "won't be blackmailed," but this doesn't quite deal with the problem, and nobody knows it better than the Secretary of State. CHRISTIAN SCIENCE MONITOR 8 March 1973 ailaum ? s By Charles W. Yost New York As one who has spent most of his life as a career diplomat and has been considerably concerned with the Middle East, I am moved to make several comments about the assassi- nation of the American Ambassador and his deputy in Khartoum last week. The most obvious judgment is that this was an atrocity which could not conceivably be excused by any claims for "justice" for the cause in whose name it was committed, or by the misforty:.:; and "alienation" of its per- petrators. Moreover, as ? Talleyrand re? marked on another occasion, it was worse thart a crime, it was a mistake. . All over the world it has served to confirm) the popular association of Arabs with' 'terror- ism," to buttress the Israeli argument that their Draconian retaliations are necessary against irrational savages like those of "Black September," and to discredit and undermine support abroac"1 for the Arab side in the Middle East conflict. It was an unmitigated catastrophe for everyone con- cerned except a few fanatics. That being said, any realistic under- standing of the confrontation in the Middle East over the past 20 years must lead to the conclusion that atrocities of this kind are almost inevitable and, until that con- frontation is brought under control, will probably grow worse. When two generations of young Palestinians are brought up in refugee camps, without decent homes or regular employment, without a country or a future, it is certain that many, having little other occupation, will dream of revenge and some will indulge in it. The responsibility for that crime, that is, the crime of neglecting a generation of outcasts, is widely shared. It is shared by the Israelis who cast them out in the first place, who refused to compensate them and who now refuse to make a viable political settle- ment. It is shared by the Arab governments who, holding the refugees in their ghettos as a means of pressure on Israel, refused to resettle or assimilate them. It is shared by the world community, which turned its back on them, and by the United States which, while paying conscience money through UNRWA, failed to pressure the two primary recipients of its largess, Israel and Jordan, into resolving the problem. 6 6 6 Incidentally one wonders whether a similar young generation is not being forgotten and corrupted in the ghettos of America's great cities, and whether the fruits of this neglect and alienation are not the drug problem and "crime in the streets" about which we so piously protest, while failing to do more than tinker with the underlying causes. Indeed, hard as the Black Septembrists try to capture the label of terrorism for their exclusive property, the competition is very keen. Both sides in Vietnam have been and still are engaging in terrorism. torture, and atrocity on a substantial scale. Moreover, Lieutenant Calley is not the only American who participated in them. In Northern Ireland both sides indulge daily in assassina- tions of entirely innocent persons on a scale and with a callousness outdoing Black Sep- tember. Hideous as the latter's atrocities are Approved For Release 2001/08/07.: CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 they are far from unique. Even the most ."civilized" in the modern age seem to succumb as easily to fits of senseless violence as, did their barbarian ancestors. To return to the two American diplomats who died in Khartoum, as the President said the other day, the trade of diplomacy can still be a very dangerous one. It is far from being all cocktail parties or windy speeches at the conference table. Diplomats of one country or another are being kidnapped or shot at somewhere almost constantly. Very few of 'them but have had narrow escapes In hostile crowds, on the edge of war zones or, as in Khartoum, In what seems the most innocent surroundings. Those in the Foreign Service take all this very much In their stride and consider it part of their duty, an inevitable component of their chosen profession. They would, how- ,ever, appreciate a little more understanding on the part of their compatriots and masters, a little less chatter about the State Depart- ment having "no constituency," less penny- WASHINGTON POST 18 March 1973 Joseph Kraft Am~ricaIs 1V Many thoughtful and friendly Amer. ican watchers saw in the Vietnam war, the beginning of the end of this coun-.. try's supremacy in international of-' fairs. In that vein, for, example, Roy Jenkins, Britain's former Chancellor of the Exchequer, called his graceful set of lectures on America "Afternoon on the Potomac." But recent events in all corners of the globe show that Americans are far from being the over-the-hill mob. On the contrary, with the, Vietnam alba- tross finally lifted, this country's power is more than ever the dominant force in the world. The most dramatic sign,of American power has come in recent contacts with Communist China. A whole series of events-the release of American ,prisione}-s; the agreement to establish high-level liaison offices in Washing- ton and Peking; the reception of.Henry Kissinger by Mao Tso-tung-all testify to. one point. The Chinese want the whole world to know, in.the most strik- ing way, that they have harmonious relatives.with the United States. The' Russians are hardly less friendly. Big Two negotiations on arms control and trade go on apace. Secre- tary of the Treasury George Shultz re- ceived a very cordial welcome in Mos- cow last week even though he raised of ver "the Hill. the touchy subject of Russian restric- tions on Jews wishing to emigrate to Israel. A particularly revealing sign is a hopeful article on prospects for Ameri- can-Soviet cooperation published by George Arbatov, the head of the USA Institute in Moscow. Mr.. Arbatov has frequently published material that is conciliatory toward the United States. What-is significant about the present article is that it appears in the ideolog-, ical redoubt of the regime, the theoret- ical journal, Kommunist. For once, moreover, this country has improved relations with Russia and: China without seriously damaging rap- port with western Europe and Japan. No sensible person will bother his: head much about the complex details of the international monetary accords recently concluded by Secretary Shultz and his undersecretary, Paul Volcker. But those agreements reflect two political turn-abouts favorable to Washington. 'thus Japan has agreed to revalue the yen in a way favorable to Ameri- can exports. The Japanese revaluation represents a complete about-face by Prime Minister Kakuei Tanaka. The n West . Europeans have also agreed to a revaluation that is also fa- vorable to American exports. The Eu- ropean decision expresses a complete about-face by France which had previ- ously opposed any joint action helpful NEW YORK TIMES 11'March 1973 Frankfurt Cites Drug Counts FRANKFURT, West Germany, March 10 (Reuter)-Americans were involved in almost half the narcotics offenses com- mitted in Frankfurt last year, Police Chief Knut Muller re- ports. , to the American Interest. A final expression of American pre- eminence emerges from the two best- ,known hot spots. In the Mideast, the Egyptians are looking 'to the United States for a move towards settlement. Provided the Egyptians themselves show a little more flexibility, there may be such a move. In Latin America, it has become old hat merely to'blame all troubles on Uncle Sam. A marvel- ous occasion for such tactics-a special meeting of the United Nations Secu- rity Council in Panama-has drawn only a handful of foreign ministers, and no outside heads of state. . The chief lesson of all this is that .American power in, the world is de- pendent, not upon staying in Vietnam,' but on getting out. No matter what happens in Indochina, Washington has no interest in becoming engaged again. A second lesson is that the.American position in the world is easy enough to permit serious address to serious inter- nal problems, We can easily afford to concentrate more attention and more resources on such domestic problems as inflation, . education, transport, crime, race relations and the cities. In- deed, when the right approach to these problems is through international ac-' tion, the United States need have no, compunction about being what it real- ly is-namely the foremost power in the world. 01977, Publishers-Hail Syndicate 11 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 pinching on their small budget by congress- men willing to vote billions for "defense," bless forced retirement when they are still in the prime of life and usefulness. Most of all perhaps they would like a better chance to rise, like those in the armed forces, to the top of their service, rather than to see most of the prime (and safest) posts awarded to big contributors to political campaigns. (Could one of those be sent next td Khartoum?) Perhaps the tragic death of Noel and Moore, two officers of the American Foreign Service who spent their careers in the Arab world, will remind the Arabs that their friends need to be protected, and will remind Americans that they have faithful servants abroad who deserve to be encouraged and honored before they are dead. The author of this article writes from a background of 40 years as a United States diplomat. 01973 Charles W, Yost Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 WASHINGTON POST 20 March 1973 1 Charles W. Yost SALT II: Where .Does National Security The opening in Geneva last week of the second round of SALT II, the stra- tegic arms negotiations with the Soviet Union, is an appropriate' moment for reviewing the state of play in this crit- ical field. Since World War II the United States has spent $1.3 trillion and the Soviets an estimated , $1 trillion on arms. In the past two or three years, however, ' the two countries have moved from confrontation to negotia- tion and made substantial progress to- ward detente. Willy Brandt's ostpoiitik has defused the crisis in central Eu- rope. The United states has made a se- ries of significant trade and other agreements with the Russians. Secre- tary of the Treasury George Schultz recently visited Moscow. Yet, oddly enough, the arms race with the Soviets seems to roll on with a momentum all its own without any, regard to other relations between the, two countries. Arms are supposed to provide security but in this case they have become the main element of.inse- curity. As Fred Charles Ikle remarks in a recent article in "Foreign Affairs": "Toward each other as'a pea pie, Americans and Russians harbor practically no feelings of hostility,. but by our theories they must indefinitely face each other as the most fearful threat to their future existence." ;Could Irrationality be carried further? Returning specifically to SALT II, both sides approach the negotiations with some very human hang-ups which` may be more appropriate to the foot- ball field than to a competition in means of mass destruction. Reiterating a point he has made before, President Nixon declared to the South Carolina legislature last month: "Let us be sure. that he [the President] never goes to the negotiating table representing the second strongest nation in the world." NEW YORK TIMES 10 March 1973 U.S. Indicts 19?Here As Drug Smugglers Inlatin Connection' By JAMES M. MARKHAM Federal authorities yesterday announced the indictment of 19 reputed heroin traffickers, dealers and couriers and the further disruption of the !'Latin-American connection." The ring was said to have smuggled more than two tons of heroin into this country. Among those arrested in the United States and several other countries were five employes of Acrolincas Argentinas, a steward on Avianca Airlines and a Cuban voodoo high priest from Washington Heights, The alleged kingpin of It was precisely to overcome U.S, su- periority and achieve "parity" that the Soviets have been frantically building up their strategic and naval forces over the past 10 years. As long as nei- ther side is willing to be "second strongest," and as long as generals and admirals persist in exaggerating the' capabilities of the other side and ex- panding their own, the arms race will never stop. A further hang-up is the tendency of both sides to start new weapons sys- tems as "bargaining chips" to, be traded off in future negotiations. Un- fortunately, given the slow-pace of tie- gotlntlons and the vested interests cre- ated in military-Industrial complexes by each ongoing system, once a new one is started it is rarely stopped. Bar- gaining chips become building blocks. If one looks at the SALT negotia- tions either in technical. military terms or in terms of domestic political psy- chology, the negotiators have an in credibly difficult task. Since the MIRV'ed Poseidon missiles - from a single nuclear submarine could hit simultaneously 160 cities of the ad- versary, and since such submarines are invulnerable to attack now or in the foreseeable future, one might have thought it could be agreed that a cer- tain number of submarines so armed would constitute a "sufficient" de- terrent for both sides. But that would be much too simple minded. What of the "investment" by each in more than a thousand land- based intercontinental missiles? What of intercontinental bomber aircraft of which the United States now proposes to start a whole new family, the B-12? What of nuclear weapons on carrier based aircraft in European waters, and Soviet Intermediate range missiles tar- getted on, our European allies? The va- band was Francois Rossi, 'a 34- year-old Corsican who had op- erated out of Buenos Aires but who was arrested at American request last month in Barce-I Ilona, Spain, to which he had fled. With the arrest of Rossi, Federal authorities believe thay have cut deeply into the estab- lished leadership of trafficking operations that move European- refined heroin through Latin America and up to Miami and New York. In the last few months, three major Latin-connection traffic- kers-Auguste Ricord, Christian David and Michel Nicoli-were convicted here and sentenced toe 20 years. Last year, -Lucien Sardi, another big-time dealer, was killed in a shootout with Mexican policemen and a fifth, Andre, Gactan Condemine, is be- lieved by French authorities to have been eliminated. However, the current Latin- ~1e 12 connection investigation is ex-, 1-reLy Ut pieces uu - urv cu-".,a. ' tempt the players to a game as Intri- cate as it Is profitless. It is disturbing that Inc unites States is sending In a new team of ne- gotiafors at this difficult juncture. Its chief, Ambassador Alexis Johnson; is a man of great ability and experience, but not in this particular field. The "arms control and disarmament agency, which backstopped his predecessor, is being downgrad-, in both funds and staff. The h,iance of decision-malting could thc,efore shift to the Pentagon, where each of the three services has its sacred cows to protect. Of course basic choices will be made by the Pres- ident with the assistance of Dr. Henry Kissinger. Let us pray those choices reflect what our primary security in- terests really are in the 1970s. A' recent Harris poll showed that more than 60 per cent of Americans believe today that the government should Increase spending to curb air and water pollution, to provide federal aid to education, and to help the poor, whereas &b per cent oppose Increased spending for research and develop- ment for defense. It is just possible that- the public has a more realistic sense oZ where priorities in the na- tional interest lie than the government has. Vice President Agnew spoke in scathing terms during the political campaign of those who "disastrously tamper with the national security." Perhaps those who are tampering with, national security in the real sense are* not those who believe we could safely reduce the billions spent to deter an extremely unlikely nuclear "first strike". against us, but those who are reducing funds needed to make our cities and suburbs safe, healthy and civilized habitats for Americans. peeled to yield still More indict- ments. And whch those have taken their toll, a "new genera- tion" of South American-based traffickers is expected to emerge, as one well-placed nar- cotics official put it yesterday. At a news conference crowd- ed with representatives of Fed- eral agencies - among them John Ingersoll, director of the Bureau of Narcotics and Dan- gerous Drugs, and Customs Commissioner Vernon Acrec- Robrt A. Morse, United,States Attorney for the Eastern Dis- trict, annouced the four indict- ments. Rossi, known for years to the police of several countries as the elusive "Marcello," had, .like David, Condemine and ,Nicoll, originally worked for IRicord, but then set up his own operation. Rossi, who is wanted on charges of murder in France, will be extradited to this coun- i try. He built a typical polyglot smuggling network in Latin America, according to Federal authorities. Among those indicted as members of his ring were Este- ban and Cesar Mclchiore and) ,Roberto and Eduardo Burns, two sets of brothers who had -worked as freight handlers for. Acrolincas Argentinas in Buenos Aires. They allegedly eased heroin shipments into the holds of planes scheduled for flights to Miami and New York. At the United States end,' Jaime Pereira, who is chief cargo agent for Acrolincas Ar- gentinas in Los Angeles but who had worked in New York,, allegedly met the shipments on: ,arrival. According to agents, who trailed hint, Pereira was kept moving about the United States, depending o nthe desti- natiomt of a particular shipment. ' e Elio Paolo Gigante, a Bra,- ,.? zilian steward for Avianca who ? was arrested in Bogota, Colom- bia, in 1967 for smugg!ing drugs, allegedly served on oc- ' casion as a courier for the ring. The reported involvement of airlines personnel in the case ? ? 1 highlights a classkc mode of smuggling, which is by no means confined to Acmiineas Argentinas and Avianca, ac- cording to narcotics authori- ties. The principal 5-eciver et tile, Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 ? q - Approved For Release 2001/08/07 : CIA-RDP77-00432R0001001~0001-$ 'American end, according to of-I ficials, was Roberto Arenas, al 57-year-o1d Cuban exile who served as a high priest in a voodoo cult known as Los San- tos. Agents who arrested him said his spacious apartment at 515 West 187th Street in Wash- ington ', Heights was littered with chicken heads, candles, in cense sticks and other voodoo paraphernalia. Arenas, who reportedly used sect members as distributors, was said to consult the heav- ens for propitious times to bring in a plane load of heroin and then bless each newly ar- THE COMMONWEAL 16 March 1973 rived shipment before sending it on. Attired entirely in white, Arenas was yesterday arraigned before Federal Judge .Jacob Mishler, who set bail at $750,- 000. The cult leader was un- able to post it. The, indictments, which cover the period 1965.1971, name as co-conspirators but not as de- fendants both Nicoll, the traf- ficker who was sentenced to 20 years last December, and Hovsep Chambian Caramian, a convicted Argentinian heroin smuggler who had jumped the x'o:itics of L7ero3ta its r' -t' ergs i is ALFRED W. McCOY Harper & Row, $10.95 Trc : .rlero sa COMM. OF CONCERNED ASIAN SCHOLARS STUDY GROUP New England Free Press (Boston), 250 .Si t U CONE N The prevailing wisdom in official cir- cles and much of the media is that the heroin which passes through American syringes begins its journey on the Ana- tolian plateau of Turkey. There the raw opium is grown and sold to those who transport it to Marseilles. In Marseilles' infamous laboratories it is transformed into heroin and shipped to America. For many years, we are told, the gov- ernments of Turkey and France re- fused our earnest entreaties to join us in the fight against the heroin plague. Now, at long last, they have had a change of heart. Turkey is forcing its opium-growing peasants to abandon their crop and the French police, hand- cufTcd for so long, have been unleashed against the chemists and smugglers. The heroin traffic, it would seem, is coming to an end. Like the war against inflation, the narcotics war has been won by the Nixon Administration. The boundless joy all good citizens must feel at this news is muted, however, by the reality that heroin grows more available as each day passes. The contradictions inherent in the official view of the heroin trade provide a point of departure for the cxceilent, complementary studios by McCoy-and the CCAS study group. Official wisdom to the contrary, 701i% of the world's illicit opium conies, not from Turkey, but from the Golden Triang!e in which Burma, Thailand, and Laos meet. Pass- ing through laboratories in Hong Kong $100,000 bail in Miami last) year but who was returned from Bolivia in a United States, Air Force C-130. ' , aI It appeared that Nicoli and ,Caramian had either been per- suaded or were being induced to testify against their former colleagues. Of the 19 defendants, 5 were arrested in their own countries and will probably not be extra- dited; 4 wbre apprehepded abroad and. will'be extradited; 6 were arrested in the United States and 4 were being sought. In addition to Rossi, Arenas, the Melchiore and the Burns brothers, Pereira and Gigante, Fixing up America and, increasingly, in Indochina, itself, much of this opium becomes the pure heroin from which American junkies receive their highly adulterated fixes. Behind this story of shifting markets and increasing demand lies the political economy of the heroin trade-several centuries of o fieial complicity stretch- ing from the Portuguese to the Central Intelligence Agency. As McCoy says, "Almost without exception it has been governmental bodies-not criminals- whose decisions have made the major changes in the international narcotics trade." As one might expect, the history of the trade is complex, twisting and turning as the best detective . fiction. McCoy carries his readers through the maze with measured prose and superb research. The quality of .the research is attested to by the inability of the CIA to debunk any of the book's im- portant facts or conclusions (for their attempt see back issues of the New York Review of Books). It is a story which cannot be summarized in a few lines, although the CCAS study group does summarize it effectively without, of course, presenting the massive evi- dence disclosed by McCoy. The Opium Trail complements Mc- Coy's work by concerning i:self with the human realities of addiction in the military and to the particular problems of women addicts. Concluding sections of each study discuss ways of coping with the problem. The Opium Trail focuses upon rehabilitation of addicts and McCoy, upon solutions to the nar- cotics trade as a whole. It is to Mc- Coy's conclusions that we must turn because they run counter to much of what his boo:: reveals. ' Three solutions to the heroin plague are offered by McCoy: cure the addicts. stop the narcotics syndicates, or climi- the following were indicted: Francisco Toscanino, 38, Italian citizen, alleged lieutenant of Rossi; recently ex. tradlted from Brazil. Francois Chiappe, S2, Corsican, alleged Rossi lieutenant; ? arrested In Argentina. Miguel Russo,.40, Italian citizen; arrested In Argentina. Segundo Coronel, 36, Cuban-born Miami resident; alleged Arenas associate; ar? rested In Costa Rica. Humberto Coronel, 52, brother of Segundo; held in 5200,000 ball in Miami. Felice Bonetli, 40, Italian citizen; being sought. Armando Nlcolay, 43, Argentine; alleged Toscanino associate; being sought. Giovanni Parlslo, 48, Italian citizen; alleged, courier; being sought. Mariano Warden, 49, Argentine travel agent; alleged courier; being sought. Mario Lobo, 47, Cuban-born Miami' residenti alleged malor dealer; told In $200,000 ball In Miami. Aurelio Atarfinez?M+rllnet, 31, Cuban?bornl Miami resident; alleged emeioys of Lobo's; held in $200,000 ball, be halted,. he suggests, if the U.S. pays the opium farmers not to plant their crop, and applies economic and politi- cal pressure to the governments who now abet and profit from the trade. Much of McCoy's excellent research has been devoted to uncovering the links between America's Indochinese allies and the opium trade. He demon- strates time and time again that Amer- ica's anti-Communist crusade, and the alliances made in its name, have per- petuated the international narcotics traffic. Dien, Thicu, Ky, Khicm, Vang Pao, Ouane Rattikone-all of them, and many others, arc deeply implicated. ,Further, McCoy has demonstrated that these leaders are not only involved in the trade, but in many cases it is vital to their power base. I?Icnce, cessation of the illegal opium traffic would seri- ously jeopardize those governments we rely upon and have propped up for so long. The burden of the book is that whenever it has come to a choice be- tween opium and anti-Communism the U. S has opted for the latter and cov- ered up the former. Despite a faint hope that things might change, McCoy's "solution" cannot stand against what he has revealed. Only two successful cases of the: suppression of opium farming are dis; cussed at any length in McCoy's book. -"q, The Turks are forcing their opium farmers to give up their livelihood with.,.. ' out regard, it sterns, for the economic consequences of that act. The other..' example is the People's Republic of China, which produced the ? bulk of Asia's opium prior to the *revolution. China suppressed opium production (al- most overnight) through a massive so- cial revolution which created other goals and means of attainment for its' citizens. Without America's calculated it is possible that Asia's , nate illicit opium production. %?c re-. interference, jects the first two as being impractical and devotes his attention to the third solution. Illicit opium production can revolutionaries could have solved their narcotics problems before it became ours. Approved For Release 2001/08/07 : CIA-RDP77-00432R00010012001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 WASHINGTON POST 18 March 1973 D61viley l~ecrriit'vii 'Dual fly Thomas O'Toole Wn.1IdnQlon turd Htnif writ',. ~tslL.is! Mission Over China, 'h en CapefaPe2~ i:e 1, rhere were 30 of them there that day in 1951, 30 (graduating Yale seniors all, drawn to a small room on the New. biitnt notice Haven campusy a recume on the bulletin board. One of them re- members that the notice was next to one put there by Procter & Gamble. They were met by a middle-aged man dressed In the Ivy League flan- nels of the day, noteworthy for noth- ing except that he smoked a pipe and wore the Yale tie, lie told the seniors that. he's been a member of the OSS (Office of Strategic Services) during World War II and had operated behind German lines n11-during the Allied ad- vance across Europe Ile said he was ,now with the Central Intelligence Agency, which was then so new that none of the Yale seniors had heard of .it. . ? The recruiter said he was at. Yale to bring qualified bright young men into the CIA. which needed to grow be- cause of the Chinese intervention into the Korean War. Ile said little about what qualified bright young'nien could expect in the CIA, leading several of the Yale seniors to press him on what they might have to do. "Well, this is purely hypothetical,"' the recruiter said, "but we might cx- ?pect? you to parachute into China to help set up n communications opparn- tus, sort of get things started." hypothetical as it might have bleu at the time, that is almost what Jack Downey was doing in J952 when he was captured by the Chinese in the foothills of the Manchurian mountains. Downey refused to discuss his mission when he was released two weeks ago after 20 years in a Chinese prison. but reliable' sources say be was on a dual mission that fateful clay when his C?47 aircraft was shot down by small .arms fire inside China. For years, the United States has dis- avowed Downey's mission and %%-here. State Department cover story has long been that Downey was a Defense De- parinx'nt employee. on an authorized flight from Seoul to Tokyo the day his plane was lost. Ihlwney's fricvuls say he Could nave been released as Carly as 1955 if the United States had only acknowl- edged that he was a CIA agent. Ills friends call him a victim of the Cold War, a victim of the China Lobby that kept the United States friendly with Chiang Kai-shek and a victim of the virulent anti-Communism of the '50s and '60s. Downey had been a CIA agent for more than a year, one of a dozen Yale graduates who had been recruited off the campus that day in 1951. He was participating In a tradition that grew through the fifties and on into the six- ties, when Yale men tended to domi. nate the ranks of the CIA. Downey was stationed by the CIA In, Japan, where he trained Taiwanese from Chiang Kai-shek's Isolated island in the arts and crafts of the profession he'd been taught in Wasbington. Dow- ney was considered one of the best young agents in the Far East. He was strong, durable, quickminded and a born leader of men. That leadership was obvious even in Downey's early CIA days. His class of 40 was asked at the end of their train. ing which man in the class they'd like to lead them or be with them in trou- ble spots. Thirty-one of the ?40 chose Downey. Most of that class wound up in South Korea or Japan, where they trained South Koreans and Taiwanese in espionage. The work was routine, but it had its moments of danger. One agent (also a Yale classmate of Downey's) remembers going aground in the fog -off the coast of North Ko- rea, where his "fishing junk" was drop- ping Korean agents into the north. "VVe thought we were aground on an uninhabited island, where we'd be safe until the tide lifted us off," he said. "Then the fog began to lift and we dis- covered we were less than 100 yards from the main railroad )Inc that moved men and supplies down from Vladivostok." Nobody, but Downey knows how many missions he flew over China, but the men who knew him in the CIA as" sume he'd been there more than once. One former.agent said there was never any need for Downey to be on the plane. He said than while Downey didn't defy regulations, he overstepped his participation in the mission by be-, ing on the plane. 'Jaclt flew with his men because he ,liked them and wanted to be with. them when they jumped,".the one-time agent said. "That was one reason he was there. The other one, I guess, was that it was a lovely moonlit night and Jack just wanted to see China." The mission Downey flew Is believed to have been a dual one. It is under- stood the C-47 was to pick up a Talwa- .nese agent who was already inside China. The plane was then to continue on to the mountains of Manchuria and parachute seven other Taiwanese into China to set up a communications base. Downey's plane never made it to the mountains. Sources said the Chinese arrested the Taiwanese agent Downey was supposed to pick up before Dow- ney's plane left for China. Sources also said the Chinese intercepted radio messages inbound to the Taiwanese agent, which alerted them to the time and place of the pick-up. When Downey's plane flew into China, men and weapons were waiting for it. The C-47 is understood to have come in low and slow over the spot 14 designated for the pickup when Clii- nese troops opened fire on the plane. ? The C'-47 crash-landed in n Manchu-: Tian field, which explains how Downey' is said to have walked away from the wreckage. All eleven people on board' survived the crash. Besides Downey, there w , CIA Agent Richard Fecteau, two Taiwanese pilots and the seven Ta- ,iv.,anese agents who were to be para- The seven agents were executed by the Chinese. The two pilots may also have been shot, though there is a pos- sibility they are still in a Chinese prison. Fecteau was sentenced to 20 years in prison, Downey to life. The,, different sentences were given because Downey was the mission chief, Fecteau' a subordinate. Downey has said he spent the first 10 months of imprisonment in leg irons. Harvard, University Law Profes- sor Jerome A. Cohen, a classmate of Downey's at Yale and today a special- ist in Chinese law, said there was noth- ing unusual about Downey's treatment. "All criminals were treated the same way in the People's Republic of Chi-' nag' Cohen said. "They socked it to you from the start, then became len- ient as you reformed, vs you told the truth and as you repented about the, truth." Do,viiey said he told his captors ev- erything he knew in those first 10,. months. He was quoted by newsmen Interviewing him last week at a hospi- tal in New Britain, Conn., where his mother is recuper ling from is stroke: "1 would say I revealed about every bit of information I had." Mica he'd told the Chinese the de- 'tails of his work, Downey was taken out of leg irons. But he was kept in solitary confinement for another 14 months, during which time he was not allowed to talk to anybody but his cap- tors. Even that conversation was lim, ited to chats with the jailer who super- vised his 30 minutes of courtyard exer- cise every day. Downey and Fecteau were moved out of solitary in a rural prison and Into Peking's Grass Basket Prison in' December 1954. There, they were put in with the crew of a B.29 that had been shot dcnvn over North Korea. They were also tried and convicted of. espionage by a Chinese military tribu- nal, which announced the ::unvk:tlon to the world. "We were elated at the conviction," remembers one of Downey's class. mates who had gone into the CIA with him. "We'd never heard of his capture. We'd all given Jack up for dead." The Korean war ended before the Chinese announced Downey's capture and conviction. When It ended, negoti- a:lons b e g a n between the United States and the Pccple's Republic of China to arrange a prisoner exchange. A list of prisoner. was swapped in Ge- neva in April 1954. The Ignited States Usted 129 Chinese it had detained, mostly Gcicntlsta and cconosaista 'who'd he2;a i.cacbii j or -,(approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 working In the United States. The Peo- ple's Republic listed 40 Americans, in. cluding the fliers Downey sat in prison: with in Peking. Downey and Fecteau were not on the list. - , "They weren't on the list because'. John Foster Dulles would not admit they worked for the CIA," said Har- vard Law Professor Jerome Cohen,. Downey's Yale classmate who was later to become a force behind his re- lease.: "We never admitted he was missing so they never admitted he was captur d." Whe the Chinese announced that they were holding Downey and Fee- teau, Secretary of State Dulles refused to budge. The story that the State De- partment issued in 1954 was the story they stuck to until early this year. Downey and Fecteau worked for the U.S. Army. Their plane had gone off course between Korea and Japan and ended up over Manchuria. The fliers who were in the Peking' prison with Downey and Fecteau were released by the Chinese in August, ,1955. Downey and Fecteau stayed be- hind, victims of the growing Cold War between China and the United States. A witness to this is one of the fliers who met Downey and Fecteau in prison, a man named Steven Kiba, who .teaches Spanish In a high school In Norton, Ohio. "I asked a Chinese commissar if Dow- ney and Fecteau would go home when we went home," Kiba said, "and he told me, 'The only way they will ever get out will be for your government to admit they are CIA, agents.' 11 1 :. Xlba told Washington Post special correspondent ? Bill' Richards that, he WASHINGTON POST 19 March 1973 reported this to the CIA when he was released. He said he passed along a message from Fecteau that the Chi- nese were aware of his and Downey's attempt to set up h CIA spy ring under the code name "Operation Samurai." "The CIA man told me to forget it,' forget about the whole period with Downey and Fecteau," Kiba said) "They said as far as they were con- cerned it never happened. They said it -looked pretty hopeless for them and' seemed to indicate they would never' get out." ` Harvard Law Professor Cohen is one' who insists the Chinese tried to main-? taro some kind of contact with the United States over the Downey and Fecteau cases from 1954 to 1957. He said China tried to regularize relations with the United States during this pe- riod, but that the United States re- jected China's moves because the l United States did not want to under- mine its relations with Chiang Kai. slick. China made a last attempt at recon- ciliation in 1957, when Premier Chou En-lai offgred to repatriate Downey and Fecteau if the United States would allow American newsmen to visit China. Dulles refused, declaring that if the United States were to let that hap. pen it would be giving its approval to .a regime that "practiced and trafficked in evil." Downey and Fecteau were finally re- -leased when President Nixon chose to acknowledge their roles as CIA agents: He did it at a press conference just be- fore presidential assistant Henry A. issiiig' U.S0 Pi lots Die Kissinger left on one of his trips to China. Ile did it In answer to the last question asked at the press conference, in a way that convinced Jack Dow- ney's friends that the question was planted and the answer rehearsed. . Jack Downey emerged from his 20 years in prison looking and acting like a man who'd never been in prison, al- most a symbol of the detente that now exists between the United States and China. Downey had two recreations in prison, reading and exercising. To- gether, they saved his sanity. He carne out of prison speaking Chi- nese and able to read and write Rus- sian, which he learned from Russian ceilmates and from the Russian novels his Chinese captors let him have. His friends say he is In excellent physical .shape at' the age of 42. He can run 10 miles, do 100 pushups and as many as' 50 chinups. His weight is 190 pounds, a little less than it was when he wrestled and played varsity football for Yale. Jack Downey is the last of the Yale class of 1951 to come in from the Cold War between the U.S. and China, almost a symbol of the last 20 years, The others who went into the CIA when the Korean war looked like an American disaster all left years ago. One is a freelance photographer in 'at Yale, a third runs a hosiery mill and a fourth a lobster-tail b i ih th us ness e Solomon Islands. "We all got bored and disillusioned," bureauracy, the paper work and the politicking got too stifling. That, and the times changed. So did we change." Flying Dowil nto hi~~a inounced the capture and con- By. Thomas O'Toole in private conversations with' viction of Downey and Fee- " the D d k' l cau, owney an cc W0.ehlnuWn Punt staff writer ' State Department official said. Two civilian American pilots, ?'~Ve also have a -bulletin to who had been listed as missing This effect from the New on a flight from Korea to China News Agency in 1954,! Japan in 1952 .were killed pi, which we have as referenced loting the plane that took CIA1 agents Jack Downey and Rich- ard Fecteau into Communist! Chinese hands when it was shift down deep inside Chiata,! it was learned yesterday. The fliers were pilot Robert C. Snotidy and copilot Norman Schwartz. At the lime of the in our files." The. State Department's ad- that Snotidy and mission 'Schwartz were pilots for Dow- ncy and Fecteau surprised even former CIA men who have kept. up with the case be- cause of their friendship with Downey. For years, they had crash, both men were employ-i believed that the plane had ed by Civil ;,1ir Tranb~port,?'mri been operated by Chinese Na-, airline which flew' covert airi. tionalists flying for Chiang; 'for the Central Intelligence' For the last 20 years. the ' Aetncy during the Korean State Department has told the wan'. families of Snoddy and) A State Department official Schwartz that the two fliers said Snoddy and Schwartz, were lost when their civilian i t were on the plane with Dow-1 lney and F c c t e a u when it( (crashed in Manchuria In late November, 1952. Downey and Fecteau survived and were taken prisoner by the Chinese. Fectcau was released in .1)c_1 sea plane went down a on a flight from Korea to Ja- pan. The State Department' s a I d that an "extensive search" had been made for the two fliers, but that they were "presumed dead" cember, 1971. and Downey] families had that this might' just two weeks ago. I not be the whole story came L. "We have cwnirmed all, this iin 1954 when the Chinese an - teau, who the Chinese said !were caught when their plane was forced down attempting to supply a Chinese National- ist spy ring in the mountains, of Manchuria. ' A year earlier, Snoddy's mother had turned in a small life insurance policy on her son that he had begun pay- ments on when he was a teen- age newboy in Roseburg, Ore., where the Snoddys lived. The policy was paid and re- turned with a copy of his flight plan the clay he and Schwartz were said to have been killed. The flight plan for his C-47 aircraft gave Seoul as his departure point and Tokyo as his destination. It also listed as passengers on the .plane J. Downey and R. Fecteau, who were described as Department of the Army ci- vilian employees. "When we heard a year later that Downey and Fee-, teau were prisoners in China 1 we didn't know what to think," said Snoddy's sister, I Mrs. John Boss, who today lives in, Creswell, Ore. "Of course, all we could think of was that Robert and Norman (Schwartz) might be alive too." Mrs. Boss said she and her mother wrote to then Sen. Wayne Morse of Oregon ask. Ing him for help In finding out what happened to Snoddy. Morse wrote the Snoddy fam- ily saying he would pursue it further, but the Snoddys heard nothing more from the State Department. "We still don't have any- thing in writing," Mrs. Boss said yesterday in a telephone Interview. "We really think we're owed an explanation of what happened after all these years" Oregon Republicans Sen. Mark Hatfield and Rep. John Dellenback wrote to Secretary of State William P. Rogers last Friday, and asked: "Are Snoddy and Schwartz dead? If so, how and where did they-die? Were they serv- ing their country as employees of the U.S. government at the. ,time? If they were, does the government have any legal or (moral obligations to the fami- lies of these men since they were acting under the ? direc- tion of government employ- Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 .Sunday, March 11, 1973 THE WASHINGTON POST 'ortrait:A Man- L By Naacy L. Ross Four years ago blazing headlines announced China's. top-ranking diplomat had defected to the West and requested political asylum in the United States. Liao Ho-shu, 46, charge d'affaires at the Chinese mission ; in The Hague, was reported at the time to head the ,Chinese espy network in Europe. His defection was 'considered the West's most important intelligence -coup in years. Moscow radio immediately dubbed him "Peking's James !Bond." Taiwan cabled Washington it would give him a hero's welcome. Peking demanded his return, charging the U.S. had kidnapped him. When we refused, the Chinese canceled the upcoming session of Sino-American ambassadorial talks in Warsaw, our only official channel of communication at that time. ,Secretary of State William P. Rogers expressed formal diplomatic "regret," and that was the end of contacts until,", ,.January, 1970. The resumption eventually led first to ;Henry Kissinger's and eventually to President Nixon's visit.,' a year ago to. the People's Republic of China. Two months before that historic trip, the White House received a letter from Liao I-Io-shu. He wrote he could not., get used to the American way of life, had "made a?mistake" in defecting and asked permission to return to mainland China. The letter was tarried over to,the State Department:' for routine processing. -- - - --. . . In May Liao was on his way home via the Chinese Embassy in Ottawa, Paris and Shanghai. This time there were no headlines. His departure remained unknown to the public at large until January, of this year when a succinct ..: wire dispatch from Hong Kong quoted a local magazine as saying he had returned to the PRC. He disappeared behind the Bamboo Curtain like a pebble in a pond. What happened to make the defector redefect? Did Liao-an embarrassing reminder of the cold war-become a sacrificial lamb on the Nixon-Mao gltar of peace and friendship? Was this man, the product of a totalitarian society, unable to cope with the unregimented life in a democracy? Was he the pawn in the ideological match between resident Chinese here dedicated to Taiwan and those favoring the motherland? Or was he merely the casualty of extended exile-deprived of family and meaningful opportunity for career advancement, physically ill and mentally unbalanced? ? Is it possible he was a double agent-or was he, in fact, no spy at all?- The following is an attempt ,to reconstruct the life of one Chinese defector in the United States, from the tibia he disappeared from the headlines until he reappeared for one last brief instant. Since Liao left no known diary, his story derives from the comments of those few Americans and Chinese whose paths he crossed. Many of the former were reluctant to talk, either because of their involvement with the CIA or with mental. hospitals and patients. Some of the latter gave conflicting accounts, depending-one suspects-on their own political loyalties. The CIA at first refused comment, ,.but later confirmed the essential elements of this portrait. The story of intrigue and incipient insanity that is Liao llo-she's began in what is now Wuhan, a city in the central province of liupei. where he was born in 1923. Little is known here of his formative years except that he studied economics at the University of Peking, was assigned to the :. Foreign Ministry In 1951 and joined the Communist Party two years later. He married it pediatrician and had two children. He went to The Hague in 1964.. Consistent. with P.R.C. prac- tice at that time, his wife and chil- dren, then aged 4 and 9, were not 11 allowed to accompany him. Lino re- mained there without returning home throughout the Cultural Revolution, whereas nearly all Chinese ambassa- dors were summoned home for reedu- cation. In 1065 a sensational incident occur- red at a Chinese legation building in The Hague. A visiting rocket techni- clan, Hsu Tm-tsai, was snatched from a hospital X-ray table, where he had been taken after either falling from a window trying to defect or after foul play. Lino later told the CIA he was one of the kidnappers. A da later the- engineer died at the m1r.,,on. Peking's news age:icy said at the time Iisu had pn" ed Information to the Central Inteii.igence Agency in ex- change for a promise of asylum, The Netherlands demanded the recall of the chnrgo d'affaires, Lt En-cblu and another diplomat. Lino, who then be- came charge and the highest ranking Chinese diplomat left In Europe, later learned his ex-colleagues were harshly and even physically attacked by the Red Guards when they returned to China, Red Guard diplomats soon were sent to The lingue mission. The younger of. ficials tried to take over his job, Lino told the CIA, accusing him of being c capitalist. "They told me it` was bour. geois to raise flowwers, that I should raise vegetables instead," Lino later re- called. One clay In late 1968 a Chinese 911ip nrrlvrd ill itottcrdant. When his revo- lutionary colleagues suggested Liao send his baggage to the ship, lie sensed he was about to be Shanghaied, the intelligence sources say. bearing the same fate as his predecessors once back In Peking, ho turned himself in to Dutch pollee headquarters on Jan. 24, 1969, at 4:30 a.m., wearing only pa,inrnns and a raincoat. Eluding the Chinese diplomats who were trying to find Lino, Dutch secu? rily officials turned him over to Amer. ican nufhorlties who promptly f1e,'r him to tills country. The first official word that he had arrived here came on Feb. 4 when State Department spokes. man Robert McCloskey announced that Limo's request for political asylum in the United States was "under con- sideration." A few days later Pekng's Foreign Ministry charged the U.S. and the Dutch governments with "deliber- alely engineering" Lino's e s c a p e and demanded the "traitor's" re- turn. ('i'bis mn?lu'fi file first time since the Korean will, that file 01lnesa had Issmvl to lnihlle prate L against 1110 fir. ferltorl of one of their officials, The outcry fueled the fircc of suspicion here that Liao was Indeed the chief of Chinese intelligence operations in Eu- rope. If Liao were not sent back, Peking warned of "grave consequences." These proved to be cancellation of the Sino-American talks, which were scheduled to resume Feb. 20 after be- ing suspended for 13 months. Peldng accused Washington of "plotting" to send Liao to Taiwan "with a view to creating further anti- China incidents." Of course, all was forgiven nearly a year later when the machinery was put in motion to end a quarter century of ,,.Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 isolation between the two super pow- ers. Clearly the Liao affair was a dead 'issue; the man Linn was not, however. Though dubbed "Peking's James Bond" Liao certainly bore no physical or social resemblance to Ian Fleming's hero. Tall for a Chinese, he was thin, -balding, and wore horn-rimmed glasses. "He was the least outgoing person I've ever known," recalled Dr. Michael J. McCaskey, head of the Chinese-Japa? nose 'language department at George town University. The two first met in August 1069 when a government offi- cial brought Lino around to work as a' "casual laborer" ($1.80 an hour) on a National Defense Language Institute project to revise basic Chinese Ian. gunge courses for.the military. Liao's existence for those months be- fore lie "surfaced" at the university in August, can be reconstructed only. piecemeal. Ile almost never talked about his first months In this country and for a while even declined to let jhis colleague's know where the was living. (The university listed the department of Chinese as his mailing address). Ile went to elaborate pains to get off the Wisconsin Avenue bus a few blocks away from his apartment. Though lie habitually refused offers of a lift honkie, a driving rain once per- suaded him to accept. Even then the in- sisted on getting out of the car before reaching his building and walked the rest of the way. Come September the did list his ad- dress on university records as 2702 Wisconsin Ave., although he did not in- clude the apartment number. The jani. tor at the Sherry I-fall apartments, Willy Barnes, at first denied ever see- ing the tall, lanky Chinese. Later, when told Liao's apartment number, 605, Barnes recalled the Chinese did indeed live in the one-bedroom unit- "although he would be gone sometimes for as long as a month at a time." Three or four other mien with their own keys used the apartment as'well by day, lie said, though the knew only one of them. Apartment 605 was rented from April 1900 to January 1970 in the name of John 1r. Giunfriddo, t the name 11ni 1wN recnllcd in cotlnection Willi (105. (ihlnfriddo, it lawyer WIttian office on K Street and a home in Vienna, Va, signed the lease. When asked in an interview about Lino and the apartment, lie replied he had no knowledge of either. Still, he admitted it was possible his firm had rented the apartment; following its custom, for out of town guests "at times like the Cherry Blossom Fest. val." A couple of days later, after check% ing his file, Gionfriddo found it slip of paper with the name of George Noa. goy. Though he had no record of pay. meat ho thought lie had sublet the apartment to Neagoy, whom ho do- scribed as a one-time client for whom he thought lie had drawn up a will Neagoy told him the needed the apart. ment for out-of-town relatives. Neagoy, who lives in Chevy Chase, Is an employee of the CIA. The two apartments adjoining 603 were at that time rented to a Soviet diplomat and a Defense Department intelligence officer, causing a rental agent for the Sherry Hall Apartments to joke, "One-half of the building was 'foreigners and the other half, the CIA watching thom." Interrogation led the CIA, at least, to conclude that Liao was no plaster spy, Simply a middle echeloit diplomat. It Is unresolved whether even so he was able to supply U.S. authorities with any worthwhile information. Why then had soMe people thought he was a spy In the first place? For one thing, the climate of mutual suspi. cion and hostility coupled with a dearth of knowledge of events inside China sufficed to make the intelli- gence community jump at anything when defectors were as scarce ? as dragons' teeth. For another, a Chinese diplomat of lesser rank than Liao, who defected from the embassy in Damas- cus in 1066, had told Washington that Peking was anxious to avoid becoming directly entangled in the Vietnam war. Of all those questioned about I.,tao, not one in retrospect thought he could have been a master spy. "Ilia general indecisiveness made him unsuited for positions of high command and his lit- eral-minded openness made him un- suited for political intrigue," com- mented one of his closest American ac- quaintances. Still, the idea. that the CIA even suspected he was a high- ranking agent, said a Chinese friend, was one reason Liao disliked America. Having finished .its questioning, the U.S. government began the process of ,disengagement. The defector was given a monthly allowance, believed to be $300, a permanent resident's visa, a Social Security card and a job. Liao's job at Georgetown was to copy in long hand elementary Chinese lessons, a monotonous, mechanical assignmpnt?he performed with much rrrumhllnn l-Tn mn,in If ni...l....e U. tamed a certain arrogance about his' expectations. His primary concern throughout that period continued to be finding a good job. This led him several times to the brink of accepting employment offered by the Nationalist Chinese. Besides work, he was also seeking a new wife and asked Chinese acquaintances if anyone in Taiwan would marry him if he went there. "He was very lonely," said McCaskey, "although he never. wanted to meet any women here." From the moment he set foot in this -country, the Taiwan government had tried to recruit him. In the Chinese lexicon, a defector from Communism is presumed friendly to the Chiang Kai-shek regime. Ku Cheng-kung-the man in Taipei in charge of defectors, or as.the is officially titled, president of the Free China Relief Association- sent a cable to the Chinese Embassy in Washington Inviting Lino to visit Taiwan. Pressure was put on then- Ambassador Chow Shu-kal, now Tai- pei's Minister without Portfolio, to influence Liao, who was open to the idea. Six months or so later, after the CIA interrogation was over, Liao and Chow finally met. The meeting was arranged through Chiang Te-cineng, a junior high school classmate ' of Liao's and now assistant manager of ? . the (Nationalist) Chinese Information Service in New York. Another college friend of Liao's, a former Washington correspondent for a Taiwan paper, , r Wang Yu-lhsu, now studying at George- . town, also tried to help Liao decide aldered title work beneath him yet whether to go to aiwan. declined to accept any more interest- According to them, Liao attended A National task. Day reception and several "He wanted everything all at once," banquets at the embassy-where recalled Dr. Me everything "but didn't Wang's wife works-and had intimate know how to do anything. His knowl- and friendly conversations" with Am- bassador Chow. Liao was offered a $500 edge of economics was outdated. He a month "sweatshop" job with the wanted to make a career for himself- Chinese Merchants Association, a ship. anything but diplomacy because he ping company in New York's China-. was tired of governments. He kept, town that is owned by the Republic of, mentioning he had gone to talk to 'the China. representative of the U.S. government' One of the conditions was that he (Neagoy) about a permanent job. But would first have to visit Taiwan. Wang nothing ever came of it. prepared to accompany Lino to Taipei, Had the CIA indeed led him to be- but at the last minute Lino balked. 'Bove it would furnish him a good post- This was to happen several times until ? lion as a reward for defection and in. the embarrassed Nationalists gave up -formation and then defaulted when he on luring Liao, intelligence sources proved uninteresting? .'The CIA denied any "deal" with said. reasons for his refusal were Liao, but told him it was legally re- never clear. Once, for 'example, he de- sponsibie for his welfare while he was an alien in the U.S.A. alined at the last moment to sign the "I believe he saw himself in the role regulation -Internal Revenue Service of Confucian sage, rejected by an em- form stating he, an alien, had paid his peror who has lost the Mandate of taxes in full. Because the statement Is Heaven," wrote Dr. D. Graham Stuart, commonly known as a "sailing form" a Georgetown University professor of Lino refused to sign, lest he be linguistics now on sabbatical in Hot- "shipped" out instead of being sent by land. plane. A week of explanation failed to ' At Dr. Stuart's urging Llao enrolled convince him.. In September 1969 in the university's Then, too, Liao must have known School of Languages and Linguistics that if he went to Taiwan, it would' as a candidate for an M.A. in Chinese. rule out any remaining chance of re- However, due to his poor command of tturning to the mainland, home and English, Liao was unable to complete family, given the enmity between the the required courses in phonetics and two Chinas at that time. phonemics given In that language. He According to Henry Liu, a Chinese tried the course at least twice more, journalist in the Washington area, who Withdrawing each time after a few wrote under a pseudonym the article weeks. He abandoned his effort finally on Liao for the Hong Kong magazine in February 1970. North-South Pole, Ambassador Chow Meanwhile he had enrolled the pro- gave Liao three guarantees in ex- vious month In a 10-week course in the change for agreeing to visit Taiwan: .school's English as a Foreign Lan- (1) he could return to the United guage division, intermediate level. He States of his own free will: (2) the Re- teceived a B plus In the course, the public of China would support him only one he ever finished. In April he financially; and (3) they would not use returned to his dull copying job, re- him as a propaganda tool. maining through September. He re- Liu points out that Liao must have fused a modest raise to $3 an hour, been aware that two previous date;- Approved For Releasenlo8T?6$/8r-e6~'l~-9dtP - 5432Ip00100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 tors, famed violinist Ma Sitson and diplomat Chen Pal, had also agreed to such a deal. But when their plane ar- rived in Tokyo airport, Taipei put out a statement on their behalf without consulting them. And others any Liao, as usual, was Just unable to make a decision. Whether duo to his experiences at the hands of the CIA and Nationalist Chinese, ,or to his loneliness and ina- bility toyCopo with a strange environ. ment, or,to his ingrained habits as a long?timo'Communist, Liao became ox. tremoly suspicious and distrustful of everyone. He thought everyone worked for the Chinese government-Ameri. can, mainland or Taiwan-and seemed a little disappointed to find out his Georgetown colleagues were just ordi- nary people, McCaskey said. Once Liao received a piece of radical student literature urging participation in a political demonstration. "I had the hardest time trying to convince him the flyers were sent to all (Georgetown) grad students; that they didn't mean to single him out in par- ticular," McCaskey reminisced. Liao imagined colleagues joking about him. Ile was'disturbed by police sirens during his nights of insomnia. A televised broadcast of July 4 fircwgrks sent him panic stricken into the street, sure someone was shooting at him. He hailed a taxi and drove around for hours, even going to Dulles Airport with some vague idea of fleeing, be- fore he calmed down and returned home at 3 a.m. Passionately secretive, he refused all publicity. lie continually looked over his shoulder as he walked in the park, convinced someone was following him. Indeed, he was under surveillance, per- haps out of humanitarian more than political reasons. The CIA kept an eye on Liao even after he moved from Wisconsin Avenue to his own tiny efficiency apartment at 1717 R St. NW in early 1970. Though he had made a few friends In the American and Chinese commu- nities early in the game, he began to turn them away. "Don't bother me," he shouted at colleagues who offered to visit. lie had only one regular Chinese male visitor, Wang, and, of course, Neagoy. In the past he occasionally went to restaurants. Now he would accept invi- tations to have a northern Chinese din- ner-he disliked American food except for milk-at friends' homes; and then not show up. He preferred to eat out of moldy cans, alone. In the fall of 1970 Lino began to neg- lect his appearance badly. He fancied his food was poisoned. He became emaciated, stooped, his teeth abscessed, and he refused to have a sty treated.- "It was almost like someone going through a religious crisis, doing pen- ance by fasting and abstinence. By the strictest ethical conduct, he distanced himself from common men who are less righteous, less literally truthful," a Georgetown mentor concluded. Alarmed he would let himself die of starvation or would commit suicide, Liao's CIA contact took him to a psy. chiatrist. He was sent to the psychiat- ric ward of the Washington Hospital Center Nov. 18, 1970, and three weeks later transferred to D.C. General's ward. The psychiatrist, who asked his name not be used because of his con- nection with the CIA, diagnosed "as se- vere a case of depression as you would want to see. I've seen a lot of sehizoids like that; they can't tall; to people and feel alone in a hostile world." One sign of his illness, the doctor said, was his refusal to,doff his over. coat while indoors. The doctor was unable to find out anything about Liao's prat, but said it was conceivable ho had had such a breakdown before. In accordance with medico-legal pro. cedure, a hearing to commit him was held Jan. 25, 1071. Many Chinese- American friends testified on Liao'n behalf. The proceedings were dropped when the patient was discharged Feb. 11 by doctors who found him "improv- ed." Strangely enough, McCaskcy re- membered, that democratic process persuaded Liao for the first time that, not everyone was involved in a conspi- racy against him. lie even asked upon leaving D.C. General if he would be al- lowed to return if he wished. ? ' Liao went to live in a halfway house' on Connecticut Avenue for discharged psychiatric patients. Though he lived there until October of that year he re-, mained generally uncommunicative with the other residents. He did not like eating with them. And although the kitchen is open 24 hours a day, he did not feed himself either, because lie disdained a 'house rrile requiring, a per- son to clean up after himself. During that period he worked on special projects for Georgetown's Dr. Stuart. His task consisted largely of running down references in scientific journals on linguistics problems, al- though he also did some independent research. "While working for me lie gathered more than 800 separate reference items in six different languages from a score or so different libraries," wrote Dr. Stuart. "I paid him the going rate for student help , . . Although he rap- idly made himself indispensable to me in my work, he was constantly suspi- cious that I was really only malting work for him. He resigned saying that he could not take money for doing tasks that any 14-year-old boy could do." The halfway house frowns on rest- dents without jobs, and besides, Liao was not happy there. Determined not to accept what he considered charity, Lino moved In October, 1971 to an $18- a-week boarding house at 927 Massa- chusetts Ave. NW, the edge of Wash- ington's Chinatown. The grits old brownstone, curtains hung between Its once magnificent dark woodwork doors to give a rinodicum of privacy, reeks of stale food and downtrodden humanity. Liao was so furtive, It was two months before the CIA caught up with him there. The managers, several generations of the Lee Yow family, chatted excit- edly when told about the exotic past of their boarder. He never tallied to any- one, except to say hello to the chil- dren, they said. His only visitor was the director of the halfway house who came twice. He had no job, yet seemed to be do- ing '%ome texts for an embnuay" on his battered typewriter. He wont out every afternoon for a walks, One day in May ho left without saying goodbye . a . or 'taking; his meager belongings. This marked the t-eaulution of the Liao story, the final phase of which be, gnu in Dect!mbor' 1671. Ila was' at the bottom of a downward tmplrel, fore. Salton 110 thought by the U.N. i,hwwrn- m0imt and the Nationalist Chineio, O12 ienated from his few friends, unable to got a decent job, separated without tiewo of hie family in Peking, of au use to anyone. His thoughts turned to home. That dark winter he composed a let. ter to Vrosidint Nixon. In It he ex- l;ressed his gratitude, but said he Just could not get used 'to the American : way a"' life or learn enough English. Iii wrote, "I love my country," and asked for permission to return to the. People's Republic of China. He admit= ted he had made a mistake in defect- ing ing and wanted to correct it although he knew that if he went back he would 'go on trial for treason. He also ON. pressed 'fear of dying far from his motherland. The letter was turned over to the State Department which told Liao he was free to return to China. "No one tried to dissuade him," a spokesman recalled. Still Liao hesitated. "He seemed to be asking us to deport him. He wanted us to contact the (Communist) Chinese for him. We told him to contact the embassy Jr, Otia. wa." In February 1972 Liao wrote to U.N. Ambassador Huang I-la in New York, signifying his desire to return. Peking took Its time deciding what to do With the defector who wanted to come home. Finally, permission granted, Liao flew,.to Ottawa in May, then on to Shanghai. Stopping in Paris en route, Liao penned post cards to the boarding house family and a few other friends, telling them ha was on his way to China. That was the first his acquaintances' here knew of his decision to return- and the last they ever heard of him. ."It was always in the back of my mind he was playing a double game," Me- Caskey mused. "But if he did, It was the most fantastic game I've ever seen." There were no headlines in either the Chinese or American press. "We weren't going to publicize it," said the State Department official. ,It could have been misconstrued as a deal whereby we forced him to go back." In the end Liao Ho-shu was a victim of cultural shock In America as well as the Cultural Revolution in China. His isolation left him mentally bro. ken. His only sense of importance de- rived from the attention paid him by "the representative of the U.S. Govern- ment." The Irony of this is that.-what- ever the CIA first thought-Liao wee not the superspy of the headlines- but in all likelihood a small fish left stranded on the shoals of International politics. `,Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-J WASHINGTfIN STAR 15 March 1973 CROSBY S. NOYES Vienna SAIGON - Compared to the cost of fighting the war, the cost of putting this country back on its feet again will be peanuts. But given the mood of the American Congress, the peanuts promise to be hard to come by. They also will be essential. The two things that South Vietnam needs now are peace and modest amounts of for- eign assistance to repair the damage of war. But ironical-. ly, as the prospects for peace improve, the availability of foreign ai(rLat least from the United States-is becoming more problematical. The American aid program in South Vietnam already is in a tight bind. Congress recent- ly narrowly approved continu- ing authority for the program ,for the rest of the present fis- cal year at the yearly rate of $32.3 rpillion, compared to $585 million asked by the AID mis- sion here. Prospects for the coming fiscal year are not much brighter, with request- ed funds projected at $485 mil- lion. The money is used largely to finance essential commer- cial imports and a modest AID project program. In addi- tion, there are food imports of about $150 million a year un- der the Agriculture NEW YORK TIMES 12 March 1973 TERMS ON U. S. AID TO HANOI DEPICTED, By R. W. APPLE Jr. Speel Alto The New York Times WASHINGTON, March 11 - The White House will ask Con- gress to approve postwar aid to North Vietnam only if Hanoi begins living up to its' part of the Paris agreement, Adminis- tration sources said this week- end. Specifically, one well-placed source said, the Administration will go ahead with the request only if the reports of North Vietnamese infiltration into the South cease and only if North Vietnamese troops in Laos are withdrawn. So far, according to Ameri- can officials, Hanoi has met neither of these requirements of the cease-fire agreement. No decision on whether to; press forward with the contro-I vcrsial program will be made, until middle or late May, the sources said. That would be six weeks after the deadline for the withdrawal of all American Congress's unwillingness to pay them to fight South Vietnam," the official continued. "We don' like the idea either:" Mr. Kissinger stated the ra- tionale for aid on his return from North Vietnam last month Without it, he said, Hanoi's leaders, who have known only guerrilla struggle and war, will be far less likely to become responsible participants in a more peaceful world. The Administration. is pre- pared to allocate, from the mili- tary and foreign-aid budgets, several hundred million dollars a year for aid to North Viet- nam. The subject will first be explored by a joint economic commission, the creation of which was announced by Hanoi and Washington last week. Administration experts, in- cluding those at the Pentagon and State Department, are un- certain whether North Vietnam will meet the two conditionis. A few of them believe that a struggle is taking place within the North Vietnamese leader- ship on this question. To American policymakers, the question is crucial because they think that the Saigon Gov- ernment's chances for survival would be gravely undermined by infiltration and because they think that the cease-fire in Laos can work only if the North Viet- namese pull out. Assuming that North Viet- nam meets these conditions, the Adminstration will be faced with a huge selling job ed because of mounting mili- tary needs. But, given peace and for- eign capital investment that is certain to follow in its wake, the prospects for rapid devel- opment are excellent. The cement and textile industries could be quickly quadrupled in size, eliminating a major drain of foreign exchange. A modernized fishing industry could provide an important source of income. Although between 25 and 30 percent of South Vietnam's forests were severely dam- aged by defoliants during the war, the country still has ample resources for a large- scale export of forestry prod- ucts, beginning with logs and going on to the fabrication of plywood and veneers. So far as agriculture is concerned, it is estimated that rice produc tion in the delta south of Sal- gon can be tripled, making South Vietnam once again an important rice exporter. The country's mineral re- sources still are largely unex-, plored, but promising surveys have been made for offshore oil, with drilling hopefully expected to start next year. Vietnam's potential for tour- ism is virtually unlimited, with the country situated squarely in the middle of the major global air routes. All that is needed is peace and a little money. It is utter- ly incomprehensible that a nation which has spent close to $100 billion to achieve the prospect of peace should balk at shelling out $3 billion over five years to get the payoff. Given the prospects here, it probably is the best invest- ment that any country, or any group of countries, could make. on Capitol Hill. The selling process has al- ready begun on a low key,- with Mr. Kissinger and Secre- tary of State William P. Rogers -as well as White House liai- son aides with Congress talking to key members of the Senate and House of Repre- sentatives. There has also been some talk of organizing citizens' groups to bring pressure on Congress. But the natural constituency for an aid program is the group of Democratic liberals, whose attitudes toward Mr. Nixon, never very favorable, have been embittered by his cutbacks in social programs and his tough positions on such issues as amnesty and capital punishment. , For the moment, the Presl, dent shows no signs of aban- doning that tough line in the face of complaints in Congress about rleations with the White H ouse. Approved For Release 2001/08/07: CIA-RDF~I-00432R000100120001-3 ends ease Department's PL 480 pro- gram. The transition from war to peace will not be easy for Vietnam. Already the depar- ture of American troops has cost the country dearly in essential dollar earnings. In 1971, South Vietnam earned $403 million from the Ameri- can military presence. The projection for this year is $112 million. Exchange reserves, already dangerously low, are expected to fall another $50 million in the course of the year. Altogether, the outlook is for a very severe aid squeeze in the latter part of this year. There is a hope that the Japa- nese, who export about $85 to, $90 million a year in consumer goods to South Vietnam, may be persuaded to pick up the tab with a commercial import program of their own. Nevertheless, at present levels of foreign aid, the pros- pect for Vietnam is one of gradually declining living standards. Reconstruction and development of the coun- try will be impossible, with all that that implies for the politi- cal future of South Vietnam's spread over a five-year peri- od. With that kind of help, the economic outlook changes from fairly dismal to positive- ly dazzling. For South Vietnam is of po- tentially rich country of in- dustrious and ingenious peo- ple. President Nguyen Van Thieu talks hopefully of an economic boom here compa- rable to that which has taken place in South Korea and Taiwan. American economists say that, given peace and out- side help, they ought to be able to do a good deal better than that within a few years. The beginning undoubtedly will be the hardest part. The first task will be the resettle- ment of South Vietnam's 600,000 refugees, which often will mean the rebuilding of entire villages and hamlets .destroyed in the war. Thou- sands of acres of abandoned farmlands will have to be re- claimed and made productive again. After the years of war, South Vietnam is massively under-capitalized. Much of the country's infrastructure, including secondary roads, railroads, canals, dikes and 18.7 million people. irrigation projects, have fall- What is needed, according en into disrepair. Industrial to AID officials here, is a pro- development, begun in the gram of about $3 to $3.5 billion early 1960s, has been neglect- troops from South Victnnm and the release of all American prisoners of war. , The postwar aid plan is in; considerable trouble on Capitol] Hill even before its presenta-I Lion, One Senator said recently he thought that no more than 10 of his colleagues were pre, ,pared to support it, and that ,such Senators as. Hubert H.l Humphrey of Minnesota and George McGovern of South Dakota, who once supported it,, had lately soured on the idea. I Nonetheless, the sources said,' the Administration is prepared to fight hard for postwar aid. One White House staff member said that the President has "a gut commitment to this and is prepared to make a hell of a fight." Whether he does or not will apparently depend entirely on the North ViVetnamese. It is be- lieved that Henry A. Kissinger, the President's adviser on na- tional security, made that point clear to the North Vietnamese leaders during his visit to Hanoi last month. "We can't very well ask Con- gress to vote money now," said an official who has given con- siderable thought to the prob- lem, "because we'd seem to be trying to buy the freedom of the P.O.W.'s We can't ask them to vote it to finance a continu- ing war effort in May." "It's not only a question of Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 LOS ANGELES TIMES 6 March 73 The Reasoning Behind BY MAX LERNEII; r:;. They probably also reserved a thought to themselves -- namely, - NEW YORK--It isn't hard to un_; ' that if Mr. Nixon didn't prove strong the day in Washington, is that, of,. U.S. aid to Hanoi. Some liberals are asking why President Nixon plumps for humanitarian` projects, abroad, when he is slashing humanitarian projects; at.,' home:. Some conserva- tives asi: why the United States should pay to rebuild the cities and Industries of the people who killed its soldiers. Both questions back a strong charge of emotional, dyna- mite. Presidents Nixon has deployed his strongest guns to, congressional assent. Secretary of State' Rogers talks mostly to the moderates, about making a "good investment" to turn Hanoi "inward" to reconstruction. Henry A., Kissinger used his press, conference for an appeal aimed mainly at. liberals. And Mr. Nixon himself, in 'South Carolina, carried the campaign. to conservatives of both parties; . , Even the dramatie'diplomatic re- cognition between' China, and the United States-for that is what the new "liaison' offices" amount to- failed to overshadow the aid issue. At his press briefing, Kissinger re- served his best prose and,bis perora- tion for aid to Hanoi. Obviously the" Hanoi' l e a d,e r s knew about the U.S..(onstitution and its quaint idea that the Pres- ident doesn't have sole power and can't hand out money unless Con- gress goes along. Yet just as -certain- ly they must have been assured in' the peace talks that Mr. Nixon would do his damnedest iA the end to get the appropriation through and,, having witnessed a four-year dis- play .of Mr. Nixon's 'resourcefulness, maneuvers and sheer will, they must have concluded t h a t his .damnedest would he pretty good. WASHINGTON POST 13 March 1973 or. willing enough to carry through his commitment, they in turn might, balk at theirs. The result could be a breakdown of the coi'nplex and fra- gilo '. peace :mac hinery. Thus the :'cease-fire would be aborted and no real peace would be born. In that sense, my own guess is that the aid provision is indeed crucial to the peace. Clearly, it is to Kissinger, but In his own sense. Note how he defines the issue..'There are four things, he says, that the aid provision is not. It Is not a condition of the cease-fire agreement, hence it is not repara- tions, It is'not a way of getting Han- oi to maintain the peace, hence it Is not a ransom. It is definitely not a .simple handout? Not, it is to be seen on humanitarian grounds. What then is it? At this point, Kis- singer goes psychological on us. Re- member that for a generation the Hanoi leaders have been either in prison or fighting. They have had no experience with normal economic and diplomatic relations, especially with the West. Give them a chance, he says, to establish a new nonfight- ing, peaceful habit. It might take. They might get used to it, might even get to like it. It is an interesting approach, pre- sented by Kissinger in more diplo- matic language than mine, but es- sentially psychological. The young have talked recently about life- styles. Give the Hanoi leaders, Kis- singer says, a chance to establish a new life-style: ' I agree with the conclusion, but I feel that Kissinger has. given it a Civilian 'row Ha .-nd-p", Fly Hhn to N. Viet Beae United Press International The State Department yes-1 that it had not been made pub- of an American civilian who apparently had himself flown to a beach in North Vietnam more than two years ago and was captured as a prisoner of war. The mysterious civilian, Bobby Joe Kesee, Is among the 108 I1011's to be set free by the North Vietnamese Wednesday. A State Department spokes man said Kcsee's name was on lie before because the State Department had no idea who the man was or what he was doing in North Vietnam until "very recently." "It's one of the stranger stories of the year," the spokes- man said. "To tell the truth, we're anxious to het him back here and ask him about it our- selves." State Department sources said North Vietnam had listed Kesce as a military POW, but the list of POWs initially ;den, that the U.S. armed forces had titled by Hanoi Jan. 27, but l no record of him. Nor did the State Department have any i1~i?ram i.L L,, I1 1_. garment that is too cute and artful. The real life-style of the Hanoi lead- ers is revolutionary. After what has happened, they won't change it in the matter of two or three years, It' took the Russian and Chinese leaders far longer before they would agree to coexistence with the West, and they have the added 'motivation of hating each other more virulently than they hate Americans. The real issue comes down to money and power. Hanoi, Kissinger says, will lt' ve other reasons for liv- ing up '.v the cease-fire, including presvillahly the fear that. American power may reenter Southeast Asia. True. Yet the image of the $2.5 hil?? lion-added to those other reasons- will help mightily. Don't call this ransom; call it an added sweetener. Curiously, it is the more embattled liberals in the Senate and the media and universities who will oppose the commitment most bitterly. They have already begun to attack the peace agreement, as anyone can de- duce from some of the drearier pas.. sages In the-left journals. The antiwar movement has been, undercut by the peace, says one. writer, who asks plaintively what will hold the movement together now. The peace settlement is impos- sible, says another; it is antilife. The peace was all a trick, says a third. It is intended as the slart of a third In- dochina war; President Nixon had to get out in order to get in. What they don't, knows is that this kind of attack helps Mr. Nixon's hard-line image with the doubters who would otherwise think he has gone soft on communism, and m; ,,y even achieve that paradox of our, time: economic help for the Conunu- nist enemy by a conservative Re- publican President. record of a civilian by that name anywhere in Southeast Asia. "We went back through file after file," a spokesman said. "Finally, we ran across a re- port attributed to a Thai pilot who said that in September of 1970 he either flew or wasl caused to fly an American ci-I vilian to North Vietnam. "Apparently they put him down on a beach in North Vietnam. "At the time we first saw that report we discounted it because it was so far out. Wei didn't think there was any- thing to it, but apparently there was." Just what happened to Ne- 'see after he was act down on the beach remains-for the' time at least-a mystery. "We have no record of his even being in Thailand, much; less North Vict.eem," tile, spokesman said. Asked If Kesce wan attached 1 to the.C e n t r a I Intelligence' Agency, the spokesman: "No. Mr. Kesee is, as far as we can tell, a totally Private Indi- vidual. He was apparently act- ing on his own." Kesce originally lived in Amarillo, Tex. His parents have since moved elsewhere In the Southwest and have re- quested the Sicie Department not to make public their address because of the bi- zarre circumstances surround. ing their son's adventure. Approved For Release 2001/08/07 : CIA-RDP77-00432 ROOD 100120001-3 - Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3' THE NEW YORK TIMES, SATURDAY, MARCH 10,_1973 1 U. S. and Cara bo dia:A t a Critical Crossroad By HENRY KAMM apeclai to The New York Times PHNOM PENH, Cambodia, March 8 - The United States has come to a critical juncture In its relationship with Cambo- dia. In the only country in tary superiority of the guer- 'Traitors' Are Seen or saying uiey waui. Ue11ULM rilla forces. Sources close to General Sirik Matak as vice presidentl United States political and Sirik Matak said that General and would not mind if the mar military policy has been dealt Lon Non had succeeded in shat and d his brother then des severe setbacks in recent days. persuading his brother that for ceded the a marshal's United heea altStates Henry A. Kissinger returned General health, General Sirik Matak is sur- iin General Sirik Matak in in from Hanoi and Peking appar- rounded by "traitors" and must char e. ently having failed, according be kept out of the Go' erh- But General Lon Non said to informed diplomatic sources, ment. that. no such trip was. neces-i to obtain any encouragement in, General Sirik Mataks persona nary. rivately, Americans; his efforts to persuade either and political character make voice fear that'. the marshal" capital to act to reduce the his Cambodian supporters and might go, leaving his brother war in Cambodia. e, ' Americans disinclined to be- in charge without what is be- lieve that he will answer Gen- The same sources- said that lieved to be the marshals' re- more than six weeks after the eral Lon Non's opposition 'straining influence. directly. His condition for ac- Meanwhile, the Lon brothers, Paris agreement, which pledges cepting the vice-presidency had have responded to the Amerithe signers "to put an end to been an assurance from the can desire for With efforts all military activities in Cam- President that he would keep to talk peace with statements bodia," North Vietnamese and his brother's opposition in of harsh intransigence. Vietcong troops show no inter- check. In a speech last Wednesday tion of withdrawing. The political inertia of Cam? I President Lon Nol offered to Indochina that remains fully at wan, .and where American planes carry out daily bombing raids, its policy has been stale- mated by both "friend" and "foe." North Viet- nam has dashed News American hopes Analysis that it will extend to Cambodia the scaling down of the war in South Vietnam and Laos. And the Phnom Penh Gov- ernment appears to have killed American efforts to share leadership with the man the United States. considers best qualified to guide Cambodia out of the war and reverse the Government's alarming milita- ry and political decline. As a result, the United States Gen. Sisowath Sirik Matak into faces the indefinite continua-. the Government were thwarted. tion of a war in which it par He is the one man it believes ticipates directly under they qualified to bring some, en- stewardship of a Government in which it has little confi- dence. And that Government depends for its survival entire- ly on American military and economic assistance, which amounts to about $200-million a year in addition to the cost of American air support. 'The United States must de- cide whether to continue its present policy or proceed to a radical revision. The present policy has suc- ceeded in maintaining Cambodia at the edge of military disaster while keeping her from totally succumbing. The Cambodian Army with all its superior equipment supplied by the Uni- ted States has been outmaneu- vered and outfought by its combined Vietnamese and Cam- bodian foes at every point. Military experts, including Cambodians, believe that it would collapse without Amer- ican bombing support. Along with the military pre- dicament, a distintegration of political support for President Lon Not's Government has left nothing of the enthusiasm and elan, at least among the small number of politically conscious Cambodians, that followed the overthrow of Prince Norolom Sihanouk three years ago. The unpopularity of the Gov- ernment is a result of rising prices, incompetence, corrup- tion, authoritarianism and !manipulated elections. The man generally held responsible for the regime's failings; by Amer- icans as well as Cambodians, is Gen. Lon Non, much more than his partly paralyzed and remote brother, President Lon Nol. Well-placed Cambodian and diplomatic sources believe that the demoralizing effect of the continuation of the regime is as much a peril to the survival of a Cambodia not dominated Consequently, the United bodia made General Sink negotiate with North Vietnam States, after an initial suspen- Matak the only real alterna? band the Vietcong's Provisional sion of bombing to test the '?tive to the Lon brothers. His Revolutionary Government but other side's intentions, has re apparent elimination as IoiSg maintained his refusal to roc sumed air strikes to help th e ognize that there is a Cam- Cambodian arm when it is ser as the marshal and his brother y bodian resistance movement by iously attacked. ? . - .,I remain in power leaves Cam- not mentioning it. Last Monday, United States, bodia and the United States In his interview, General Lon; hopes of introducting Lieut.'! the choice of continuing with Non limited his concessions to lightment into what it consid- ers the mustical muddle of the regime. ' - General Lon Non declared that General Sirik Matak must not return to the Government. Sources close to General Si- rik Matak as well as interested diplomats believe that General Lon Non's attack, in an inter- view that he requested with The New York Times-in or- der, he said, to put his view before the United States-rules out the possibility of General Sirik Matak's participation in the Government while his op-, ponent remains there. The United States had urged Marshal Lon Not to persuade General Sirik Matak, his friend since their youth, to accept the vice-presidency, which is va- cant. General Sirik Matak, whose power was almost as' great as Marshal Lon Nol's, re- signed, last year as chief of government after students, in stigated by General Lon Non, demonstrated against him. The serious illness of Presi- dent Lon Nol and his tendency to deal with pressing problems with elliptical Budhist pro- nouncements have limited his effectiveness. The political scene has been dominated for three years by a struggle behind the scenes between the two men who exercise influence over hime-General Sirik Matak, his friend, and General Lon Non, his brother. The United States has consistently favored Gen- eral Sirik Matak, whom it trusts. General Lon Non's -public declaration of his antagonism for General Sirik Matak was a dramatic and shocking move in the Cambodian context, because it put the younger brother into open opposition to an expressed wish of the President, who is the head of his family as well as the head of the nation. Respect them, as long as the United the insurgents to allowing them States Air Force can keep to lay down their arms, return them' In place,. 'or forcing ai to the Government they do not change. recognize and participate in America's identification with elections under a constitution the unpopular Government has , they do not recognize. not yet led to a perceptible Guerrillas ' Continue War growth in anti-American senti- The war continues - at any ment. Rather, Cambodians ,on I place the Vietnamese and Cam- various levels of society trust the United States to change the bodian guerrillas choose. The Government when it becomes principal battle areas are the necessary. the continuation (the banks of the Mekong Riv- ment over the war-couplled fear of'. for er, on which vital supplies are the war-coupled Phnom Penh as battles draw., transported from Vietnamese nearer daily and with price in- ;ports to Phnom Penh, and the creases ruinous to an ever-in- region south of the capital. creasing number of people- The guerrillas overrun Gov- has led many Cmabodians to Iernment positions, American express a belief that the time planes bomb them out, -and for change is at hand. But they the Government announces the do not believe it is their job to reconquest of devastated places, bring it about; instead the- Meanwhile, refugees drift 'into United States is expected to this city telling of the civilian effect the change, because it 'dead and pillaging by the sol- supplies all the power Cam- diers. bodia has. This thought makes. . Well-placed Cambodian and American officials shudder and diplomatic sources' fear that recall the series of events that even American involvement at began when the United States the support level cannot save connived at the overthrow of 'Cambodia from defeat under President Ngo Dinh Diem and, her present leadership. his machavellian younger broth. They believe that the deci- decade ago- a series of events sion of who governs Cambodia only now coming to .a close: will have to be made by the Trip to U.S, Suggested United States, or the United Publicly the officials con- States will soon face the even ' or ore wheth- tintte to express hope that Mar- m tpal decision en of defeat, or sail Lon Nol will' broaden his m to acknowledge knowlledg heighten its involvement. for elder members of the fam-1 ily is a keystone of the Cam- 21 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 IIASHIN(iTrN STAR 14 March 1973 . North Vietnamese author- ities have decided the dam- age done by American bombs , to Hanoi's Bach Mai hospital is so great that the entire complex must be razed and .rebuilt from scratch. china, a private relief group based in Cambridge, Mass., with which the B a c It M a i fund-raising effort is affili- ated, said yesterday $750,000 has been raised since the ap- peal was launched- early in January. Levin described this sum as exceeding most expecta- tions for the first two months of the effort. But now that the total amount needed has swollen to more than six times the original estimate, the fund drive is'still far from succeeding. The revelation that North Vietnamese authorities con- sider the hospital so badly damaged that none of it can be salvaged focuses anew on the controversy surrounding the American bombing of the hospital in December. . The North Vietnamese first reported the hospital was de- stroyed by bombs a few days before Christmas, during the' 10 days of intense bombing by B52s that preceded the Viet- nam cease-fire. Pentagon authorities first denied the claim, then on Jan. 2 grudgingly admitted it According to members ci a U.S. private group which has been raising funds nationwide to rebuild the hospital, this new evaluation will escalate the reconstruction costs from $3 million to at least $20 mil- lion. A five-member team repre- senting the Bach Mai Hospital Emergency Relief Fund brought back this somber ap- praisal of their project from a trip to H an o i last week. The team was scheduled to discuss -the hospital recon- struction program at a news conference today. The estimate comes at a time of growing resistance in Congress to the Nixon admin- istration's plans for a post- war reconstruction program in Indochina. Far From Success Larry Levin, a spokesman i for M e d i c a l Aid for Indo- BALTIMJRE SUN 12 March 1973 Viet `weather warfare queried by scientists Washington Bureau of The Sun Washington-A scientists' ,and Disarmament Agency. group has asked President Dr. MacDonald is a member 'Nixon to disclose any use of of the federation's Executive) weather modification in the Committee and until last year Vietnam war. Was on the President's Council "There are many different on Environmental Quality. f kinds of geophysical warfare which, if they were to be en- gaged in by ourselves and bye opponents, would be to the, clear disadvantage of man-:, kind," said the Federation of American Scientists, which in- cludes 21 Nobel laureates. "The use of weather modifi- cation as a weapon of war is an opening wedge to the use of. climate modification, the in- I ducement of earthquakes, and other still more terrible meth- ods," the federation warned. In Washington, two federa- tion spokesmen, Herbert Sco- ville, Jr., and Gordon J. F. MacDonald, released the con- tents of a petition and a letter to President Nixon dated March 1. Dr. Scoville, the federation secretary, is a former deputy director of the, Central Intelli- gence Agency under Presidents Eisenhower and Kennedy. Under the latter and under President Johnson he was as- sistant director for science and technology of the Arms Control "The time has come or is disclosure,". said the federation director, Jeremy L. Stone, in introducing Dr. Scoville and Dr. MacDonald. Government officials have continually evaded inquiries, Dr. Stone noted, with "carefully couched denials, such as it [weather warfare] didn't happen over North Vietnam." Asked if weather modifica- tion was used in the war, Dr. MacDonald cited references, in Volume IV of the Pentagon papers, to a Project Pop-Eye designed to slow traffic on the Ho Chi Min trail. "There is evidence," Dr. MacDonald said, "that experi- ~Ji U may have been hit accidental- ly during attacks on a petro- leum storage area a few yards to the west and a military command facility a few hun- dred yards to the south. Photographs widely distri- buted at the time showed the archway of the hospital's main building still standing, surrounded by heaps of rubble. It later emerged from rec- ords in the hands of Senator, Edward M. Kennedy's sub- committee on refugees that the hospital was also hit by a bomb in June, leaving large crater in the courts and and partly demolishi,ig one building. The Pentagon quiets ly acknowledged to the sub- committee that it had recon- naissance photographs of the hospital taken in July which showed the water-filled crater. More recently', the Penta- gon has declared that the more destructive accidental December bombing was con- fined to only one building of the hospital, North Vietnam's largest. i?embcrs of the five-man team are Peter H. Wolff, a use of weather modification in war, was introduced by Sena- tor Claiborne Pell (1)., R.i.) February 22 and sent to the Foreign Relations Committee. Weather modification "can be a very. devastating type of' warfare," Dr. Scoville said, with "potentialities much more dangerous than weapons in space or seabed." And, he added, "it is an awfully lot easier to control something be- fore it is a practicable' weapon." Ways of modifying weather, Dr. MacDonald said, could in- clude seeding clouds with sil- ver iodide crystals, to increase rainfall setting off powerful ground explosions along a fault line', or changing the ozone content in the ionosphere, thereby changing the surface level of ultraviolet radiation. "There is evidence [cloud seeding] was experimentally attempted as early as 1966 to reduce traffic on the Ho Chi Minh Trail," he said. "Experi- ments have been conducted in this country, Florida for exam- ple, where seeding produced rain and flooding." Dr. MacDonald noted that many countries operate under marginal conditions where a small change in climate or temperature could disrupt crops and the economy. ' "The Soviet Union is a good exam- ple," he said, noting its wheat shortages. "We can conceive of no valid national security reason for denying these disclosures ments were carried out and increased rain . - . was achieved." Dr. MacDonald urged "some sort of international agree- ment" to ban such activities, adding: "I strongly support Senate Resolution 71" on such a ban. Senate Resolution 71, which ;proposes a treaty to prohibitI about the past " the scientists' id I j,, I i i 1 'mil ~1 Harvard Medical School psy- chiatrist; John Pratt of the University of Pennsylvania medical school; Lillian Shirm ley, associated with a private medical aid group; and two staff irembers of Medical Add for Indochina, Alex Kttopp of Philadelphia and ?Xoe iy Prov- ence of Pittsburgh. Meanwhile, staffers' for, Kennedy's subcommittee have: announced. that a separate medical fart-finding group. which had been planned since . October left quietly for Hanoi last week. Members of that team, which went to North Vietnam via Vietiane, Laos, Saturday, are Nevin S. Scrimshaw of the Massachusetts Institute. of Technology; John M. Levin- son, a gynecologist and popu- lation expert from Wilming- ton, Del.; David French, a pediatric surgeon with Boston University School of Medicine; Michael J. Ilaiberstam, a private physician in Washing- ton, and Dale S. de Haan of the subcommittee staff. OSWALD JOHNSTON l as a Pandora's box to 'which the seemingly inoffensive weather modification may be the disastrous key." Senator Pell said in testi- mony on his resolution that, "in my own mind, there is no doubt that the United States did indeed conduct weather- modification operations in Southeast Asia." A spokesman for the Foreign Relations Committee said at the weekend that "there is nothing scheduled on [the resolution] yet." The proposed treaty would ban "any activity designed to increase or decrease precipita- tion, increase or suppress hail, i lightning, or fog, and direct or divert storm systems." "It also would ban "any earthquake modification activ- ity which has as a purpose the release of the strain energy instability within the solid rock layers beneath the earth's crust," and "any,. . change in the ocean currents or the creation of F. seismic disturbance of the ece~r: [tidal wave]." Two k'iovn demonstrations of weather control have oc- curred in Florida and the Phil- lipincs. 1-a April and May, 1971, cloud-seeding was used in an attempt to alleviate a drought in Florida. i The National Oceanic and Atmospheric Administration's efforts were followed by 3 inches of rairt in one afternoon. But Miami reported getting . I pea-sized hail, arousing fears of letter to President Nixon sa ,"We see geophysical werfarcl unicr. scen, posrecly erstreme, Approved For Release 2001/08/07 : CIA-RDP77-0.0432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 'consequences from weather modification. Spectacular. success was claimed for an attempt to end a drought in the Philippines with cloud-seeding from April! 28 to June 18, 1969. United States Air Force planes work- ing in coordinated patterns cause heavy rain and mud on the He Chi Minh Trail. Regjlesting specific answers from Melvin R. Laird, then Secretary of Defense, Senator Pell received a letter from John S. Foster, Jr., Mr. Laird's director of defense research and ehgineering. Mr. Foster said the information was clas- sified and "I find it necessary to respectfully decline to make any further disclosure of the. details of these activities." Secretary Larid testified April 18 before the Senate For- eigh Relations Committee. that the Defense Department had not conducted rain-making ac- tivities over North Vietnam. He reiterated this in July, again specifying North Viet- nam only, and declined to comment on whether it 'was done in South Vietnam or Laos. caused , individual clouds to become'' greatly enlarged 'and finally ',blend into a wide rain system. The project report estimated that the cloud-seeding caused more than' 12 million acre-feet of rainfall and increased the value of the sugar crop,alone by $43 million. Both Senator Pell and Weather Engineering Corpora- tion of America sought infor- mation on cloud-seeding in the Vietnam war after Jack An- derson, the columnist, reported in March, 1971, operations to, NEW YORK TIMES 16 March 1973 Eight May' Face Courts- artia, For Antiwar Roles as P.O.W.'s . By SEYMOUR M. HERSH Spealal to The Hew York Timm WASHINGTON, March 15-1 At least eight of the enlisted men scheduled to return early ,tomorrow from Hanoi are known to be bitter critics of the Vietnam war whose refusal to participate in camp life in North Vietnam provoked deep hostility among their fellow prisoners, according to military; sources. The eight formed what a top- ranking officer described as "the Peace Committee" in North Vietnam and refused all .orders given by senior officers of the highly organized prison camps. Military sources said .that they expected court-martial charges to bo filed'by some re- turning officers against 'the men as soon as the remaining prisoners were freed from Ilanoi. March 28 is the end of the time limit set for such re- turns by the Vietnam peace agreement. Under the Military Code of Conduct, any officer or enlisted man can ' file charges against a military col- league. The eight enlisted. men, the military sources said; had been captured in South Vietnam, but then were marched north to a separate camp near Hanoi some time in 1970. All of the 27 military men scheduled to be returned from Hanoi tomor- row had been captured in the South. At various times, as many as 15 enlisted men and offi- cers captured in the south have signed the same antiwar state- ment. The most notable was a message to Congress in June,,, 1972, urging the legislators to "exercise your constitutional. power to force the Adminis- tration to return to Paris to negotiate an,end.to.the war. . Many of the returning pilots, however, are known to be es- pecially furious at. the eight members of : the ? "Peace Come mittee,". whose antiwar mes-. sages have' been harsh in tone. In July, 1971, for example, according to a broadcast on the Hanoi radio, Specialist 4/Mich" ael P. Branch. of the Army,i who is scheduled to be re- turned early tomorrow, de- scribed himself as a deserter. and said: "I have disassociated myself from the military, I have taken it upon myself to desert and cross over to the side of the South Vietnamese people on Mad 4. 1968." Army officials said that Specialist Branch, of Highland Heights, Ky., had, been captured by the Vietcong in May, 1968. Other messages broadcast from Hanoi and re- portedly made by Specialist Branch called on American troops fighting in the South to desert their units and to "re- fuse combat and just botch up all your operations." According to a 1971 tape re-: cording, an Air Force staff! sergeant, John Young of Wau-. kegan, 111., and Chicago, who, also returns tomorrow, told' President Nixon: "I no longer, want to fight for you or anyone, like you. In fact, I won't ever: fight for your kind of American; people." "I cannot support. the killing of innocent Vietnamese men,Illlll women and children, or the de-: Cstruction of their beautiful Appt'ed For Release 2001/08/07 country," the tape went on. "My conscience tells me it is wrong to kill-the Bible tells me it is wrong. Most important, my mother and father have taught me it is wrong to kill or harm anyone:" . . Military officials ' Identified Specialist Branch and Sergeant Young as members 'of. the "Peace Committee." The ? six other members, the' officials said, were tentatively identified from interviews with,prisoners -returned previously. ...., ? - Pentagon sources said that the antiwar enlisted men. had apparently shared quarters at various times with some of the pilots' who were shot down .and captured in the North,'The pilots, many of them senior of- ficers, immediately clashed with them. "The G.I.'s were advised to knock It off," an officer said, adding that they had refused; Another source said that at least one officer "attempted to pull rank on the enlisted men -they didn't take to it." The reported activities of the, /eight have angered many senior military officials in the Penta- gon who have generally been reluctant to discuss the prisoner} issue over the last few weeks.' One officer complained dur- ing an interview that. the White, House had refused to let the Pentagon make a public state- ment condemning the activities of the "Peace Committee." He said'that the apparent rea- son was a fear that adverse publicity on the prisoner Issue would further erode Congres- sional support for the Adminis- tration's proposed multibillion- dollar aid program for North Vietnam. Another officer noted that the eight men were trouble-. makers "before they got in there," meaning in the prison camps. While in prison, he said, "they were seen fraternizing with guards." "Some of them were even take getting out of tours of Hanoi," camp he said. He further accused some of the enlisted men who lived with' other prisoners of "giving away vital camp secrets," such as details of how prisoners main-, tabled communications among themselves. Pentagon officials did note, however, that some of the men to whom virulent antiwar state- iments were attributed after their capture in South Vietnam in 1967 and 1968 had grown more restrained upon being moved to the North years later. Some officers here are known to be particularly pleased b}- the apparent change in atti- tude on the part of one officer, scheduled to be returned to- night, whose wife was a leading antiwar figure in last year's Presidential elections. That prisoner, to whom many written and broadcast antiwar statements were attributed while he was In South Vietnam, expressed concern In a letter smuggled to his wife by a prisoner recently released - about the growth of "radical" ;politics in the United States and cautioned her that he was politically conservative The let- ter, well-informed sources said, was read by some officers In ,the Pentagon before it was' given to the prisoner's wire. The military ' concern over the status of the eight men and Over the possibility that they might stage some kind of an antiwar , demonstration during their return to the United States was reflected in heavy cable traffic in the 'middle of the week between the Pentagon land Clark Air Force Base Inl 'the Philippines, the prisoners' first stop after Vietnam. A sea-, for officer said during an inter- view that "these men Intend to try to jump ship before they get bank here." However, he did not amplify the remark or offer any basis for It. other, Government sources, with access to the debriefing) papers from returning prison- ers, were far less concerned about the cipht. One official confirmed that "there is hard feeling between the pilots and some of the others," but added that the only? real Information about these feelings thus far had come from the returned offi- cers, whom he characterized as one-sided sources. "None of them are officers and some of then are .black," the official added, referring to the antiwar soldiers, "so the club is going after them." He accused some of the re- turned pilots and many senior Pentagon officers of looking, for blood" In connection with the dissident G.1.'s. He noted that classified details about the enlisted men "are coming out awfully easy all of a audden. "There are those of its who are hoping to handle this so some officers don't get what they're looking for," he said. "I hope we can ease the men out so they don't face charges." Other sources noted that the bad blood between most of the returning pilots and at least two senior officers who had made antiwar statements while in Hanoi had apparently eased in recent weeks as the retur- nees began adjusting to free- dom. The two officers, who had been accused of disobeying or- ders and had even bt:en ostra- cized while on their way from Hanoi to the Philippines, ap- parently will not now be charged with disobeying orders, officials said. The officers have yet to hold news conferences or to speak out In any other way since their return to the United States. In Interviews three weeks ago, Pentagon officials- ac- knowledged the charges pend- ing against the two officers, but also disclosed than they were attempting to discourage any formal proceedings against them. In the case of the "Peace Committee," however, the same officials have noted that many of the men were absent with., out leave when they were cap- l y tured, and could presumab face desertion charges. At least'two of the enlisted men already returned from South Vietnam 'had been ab- sent without leave at the time of their capture and had made 'antiwar statements while im- prlsoned. The Pentagon has an- Approved For Releale?Og~/,Q$/Q,l I IA-RDP77-00432R000100120001-3 11 March 1973 Inounced that It will not press icharges in those cases. The enlisted men, however, have not yet been made acces- sible to newsmen. All telephone calls to them are intercepted by, military public information of. ticials, WASHTNGTOn J'O ' 20 March i973 Hospital Sozircea Say Keeseo Tortured as Spy CLARK AIR BASE, Philip- pines, March 20 (Tuesday) '(UPI)-North Vietnamese in- terrogators knocked out-the front teeth of civilian prisoner !Bobby Joe Keesee and pulled his fingernails because they thought he was a Spy, hospital, sources said today. Keesee, 39, a Korean War paratrooper who was captured In North Vietnam in 1970 un- der mysterious circumstances, was freed last Wednesday with 107 military POWs in Hanoi. He uhderwent medical exam. tinations and processing at the, Clark Air Base hospital prior. to being flown back to the United States Saturday. Hospital sourres maid Kee- see was fitted with new teeth to replace those he lost,. at the hands of his North Viet- namese captors. They said his . fingernails also had been yanked. Two That pilots said Kee. see, a one-time resident of Amarillo, Tex., forced them to fly him at gunpoint from Bangkok to a beach In North Vietnam where they left him on Sept. 18, 1970. Th Prisoners By Toga Wicker Two young French school teachers, Andre Menras and Jean Pierre Debris, left New York last week to speak In titles across the United States about a matter 'that, stands in gad counterpoint to the return of Amerlo can prisoners of war from l" orUk 'Vietnam. In 1968, they went to South Viet- nam as exchange teachers in .a French Government program, In July, 1970, outraged by what they regarded cs. the corruption and tyranny of the Thieu regime, they mounted a monu- ment in 'downtown Saigon, unfurled a Liberation Front flag, and started handing out peace leaflets. This was unwise, if bold; they woos immediately jailed by South Viet- namese military police. After a trial in which they were not allowed. to speak, they remained in Chi Hoa prison in Saigon for more than twu years, until they were suddenly red leased and deported last Dec. 29. Now -they' have a grim story to tell about the Inhumane treatment, starving, beating and torturing of political prisoners in South Vietnam, of whom, they maintain there are et least 200,000 (other estimates range from 35,000 to 300,000, a lot in any case). There is nothing particularly haw about the accounts by the Messrs. Debris and Menras (aside frons their impressive earnestness) of their her-` rowing experiences and of the terrible suffering in the South Vietnamese prisons. The existence of the In- famous "tiger cages" In Con Son' prison has been well-publicized hero tend as far back as May, 1969, the story of one prisoner, He Nhan Hieu, ,was detailed in this space--how, for Instance, he had spent a month In IN THE N A TION solitary in a "tiger cage." As the two Frenchmen tell it' convincingly, things have only gotten worse since then, particularly with the great influx of political prisoners arrested during last spring's Communist offensive. ' But somehow, American public opinion has never been aroused by these activities of the msation's ally In Saigon, even though it has been docu- mented-for example in Don Luce's authoritative study, "Hostages of War"-that American funds and corn- panics helped build the "tiger cages" and American personnel sometime o helped in the political roundup. Predictably enough, Messrs. Mensae and Debris did not get much response to their appearances In New York (including a news conference at the U.N), in a week when C.I.S. meekly 24 bowed to the fears ts? its aUili,,teu and refused to show a drama about a Vietnam veteran who did not get the red-carpet treatment now bcing rco corded returning bomber pilots. Nevertheless, there was one cle- ment of the Menras-Debris account that needs repetition, if only b.:cau: it could bode txulsbla for the cc,, ''11I out L l l I' 111:;; ' i1lt;ill N rt that I,II'Itl jnll,r 'l 'I C i ucsliofts" in the shooting, nn Thtu?',lily. Hill said 1;11,trr_ ? ^t?ot.nnl 1?;van^clisnl was ;il'?n r.-nn- nccicd to for. the our-?, eek po'llmilc'mc'nt and in- t c-ti;"alion. -1'ltr' h:1si< of Ill( 1'egIIr 1, Ifill s;njd, ?'as iuforinaiion fro-11 (a.v, of ~1C't'(' ('n' 'Iltuent, etaillliih: (hrv had hell told 1,?,y all offic"r of i'r,rlcr- grrnutd i?.t?,rn::i:ti>m rai''ing I I ilrfil tint Roclr,iakov wa.: inclccrl r:htu?Itc?rcrl I.n Aftrl )a ,in h ^ r11 " r the tnfnrma- For Release 2001/08/07 : CIA-R P77-00432R000100120001-3 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100120001-3 'PIE NEW YORK TIMES, WEDNESDAY 11TAROY ~1, 19/3 lion, the officer then asked for contributions, the per. -sons said. "They left no stone unturned to capi- talize on his (loath," one constituent wrote. She had doltbts'; a h o u t both the group and Kourdakov, she said, teems( "if he was a tern a^uin Christian, why was h~, ' shacked up with that girl?" The officer of Under- ground Evangelism. KKen- neth 13oughlltan, later de- nic(l to San Bernardino sheriff's detectives that he had claimed Kourdakov was murdered and denied having any ki owledgc of such an occurretlCC. "1Ic said he had no in- formation at all," said l)et. .lames cox, who later con- cluded that "there was no Indication of foul play" in Kourdakov's death. Kourdakov. 21, gained Hutt in 1971 when he jumped from a Russian trawler and swain to the Briti.~h Colulnbia coast in it 20-hoiir ordeal. Bass later signed hire to a contract under which Kourdakov. toured church groups telling hi. story. i\ hill wits introduced in Congress last. year by I atnr.lgrchc to grant l'our- dal:ov permanent U.S. res- idence. Critic,, of Underground Evangelism have said that by distracting attention from the circumstances of Nonrdakov's (I e a t h the group hohrrl to Create a i ma tyr-and quick finan- cidc nl. On Thursday, however. Bass told coroner's jurors th;lt his dmihts Over Konr- dal,nv's death "had b(?en greatly an.