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July 3, 1973
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25X1A Approved For Release 2001/08/07 : CIA-RDP77-00432R0001001910C16 CONFIDENTIAL NEWS, VIEWS and ISSUES 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. No. 40 13 JULY 1973 Governmental Affairs ..... 1 General 000ac0000000000poo 33 CONFIDENTIAL Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R0001001-80001:8 ove nmen NEW YORK TIMES 3 July 1973 Colby Says He Would Curb' C.I.A. In U.S. and Abroad , ? ,is that they get so big that they lare no longer covert. ' The Laotian operation was !undertaken under a provision of the National Security Act of i j1947 authorizing the C.I.A., to "perform such other functions tend duties affecting national rsecurity as the National Secu- rity Council may direct.". ; 'President's Army' Denied) 1* Somewhat, reluctantly, Mr. iColby provided a guarded in- !sight into such operations by ?t ,explaining- that they were or- !ciered by a special security ,council cominittee known as the "40 committee" and presently headed by Henry A. Kissinger, the President's national security adviser. Mr. Colby took exception te a Symington characterization that under this proVision the C.I.A. was being turned into "the king's men, the President's army. But he acknowledged that such operations diverted the agency from what he said should be its "primary focus" of foreign intelligence gather- ing= Mr. Colby was not asked di- tectly whether he had person- ally been involved in discus- sions between the White House and the agency on assistance to Hunt or on ,covering up the Watergate investigation. But Indirectly the Watergate affair came up as Mr. Colby was asked whether he believed the agency should engage in such domestic activities as drawing up "psychological profiles" of American citizens or supplying espionage equipment for do- mestic investigations. ' Mt. Colby rook the position that the agency had no business in domestic intelligence activi- ties, a principle that he said he planned to "reinforce very vig- orously." He also said he was "quite prepared" to leave the top job if ordered to do some- thing he regarded as illegal. ? Mr. Colby's arrival as the new, director is awaited 'with some anticipation in the C.I.A. ranks demoralized by the per- sonnel reductions made by his predecessor, James R. Schles- inger, particularly in the opera- tions divisions. But Mr. Colby, said he intended to continue the "personnel pruning" that ini the past four months has re-i duced the agency's strength byi 7 or 8 per cent. Unless the rising personnel costs are curbed, he explained, the agency faces , on eventual situation where it will have "all personnel and no programs." As in previous -Congressional testimony, Mr. Colby denied that the Phoneix program of plitiollii ii1116atiaft in Rtitilll vietnam, which he ?needed tor three years, was an "assassina- tion program." , . The purpose of the program, he said, was to held South Vietnam ferret out the leaders , By JOHN W. FINNEY Soeolal to The new York Times WASHINGTON, July 2 ? William E. Colby said today that as Director of Central Intel- ligence he would insist that the Central Intelligence Agency re- frain from domestic investiga- tions and curb its involvement in secret wars overseas. Testifying before the Senate Armed Services Committee on his nomination- to be the new C.I.A. chief, Mr. Colby acknowl- edged that the congressional intent embodied In the 1947 law creating the agency .had probably been violated when the agency ,was directed in. 1964 to . support a secret war in Laos. ' He also said that the agency had made a mistake in provid- ing equipment that was used by E. Howard Hunt Jr., a Watergate consPirator, in the 1971 burglary of the office of Daniel. Ellsberg's phychiatrist. Symington Convinced Mr. Colby, who is the deputy C.I.A. director for operations? the agency's division for covert operations?Was questioned for nearly two hours in open ses- sion by Senator Stuart Syming- ton, the acting committee chairman and the only Senator present for the hearing in the Senate Caucus Room, the scene of the Watergate hearings.- Never before has a nominee for . C.I.A. director been so 'cross-examine in public on the policies\ he believes his largely 'secret agency should follow. The net result was that Mt, Colby took several policy posi- trons that reassured Senator Symington, who announced at the conclusion that he would enthusiastically support the nomination. . As a member of the Senate Foreign Relations Committee, Mr. Symington first exposedrthe Way ,the C.I.A. was supporting an irregular army of meo tribes- men and Thai solders in Laos. Mr, Colby gave the senator as- kurances that it was "very un- (likely" that the agency would %get involved in such activities )again. He explained that the Nagency had been drawn into iNlQfllti Laos 'at the direction of the aauFitY Orianell -cause it was supposed to be a covert operation in which the 4United States could not be of- t aficially involved. The difficulty .'"with, such operations, he said. 1 WASHINGTON POST 3 July 1973 " ? - "' 47-7"?.7"`""i7, '771 t*, Colby Hedges AssOranee, New CIA Head Vows' h`,Watergates": By Laurence Stern , : Washington Post Stott WrIter William E. Colby,! 'dent Nixon's Choice to head the Central 'Intelligence :Agency, gave Congress a carefully' hedged assurance, yesterday that he would" :keep the agency out of do- mastic affairs and Water- gate-type involvements, , He appeared before the i Senate ' Armed Services Corn. '!mittee in open session ? a t 'rare if not unprecedented. =occurrence for the operating?. ,head of the CIA?to testifY his nomination. ? Acting Committee Chait=! ..Man Stuart Symington: Mo.) was the ? only memberi am hand for what was billed, an ? examination "in; 'depth" of the . CIA's opera'-:; lions and policies. ?Colby breezed through 904 minutes of 'prevailingly 'friendly questioning by .; ;Symington. Colby's wife and, Ithree children were on hand or the ceremonial interro,. He acknowledged. that the LCA had erred in authoriz- ing the preparation of a psy- .chiatrie profile of Daniel': , Ellsberg and in providing cameras, tape recorders and 1"safe house" facilities to. -Watergate conspirators E. 'Howard Hunt and G. pot. ? 'don Liddy. .f But Colby said he could' not rule out the future prep-, !oration of psychiatric pro- files on American citizens or, -the providing of agency fa- cilities and equipment to' White, House' employees. "t can envision a situation in which it would, be appror t priate for the agency to help! !ir White House official with- ;but its coming to public nol:' ,tice," said Colby. 'The underlying concern, ,,,expressed by Symington was, / ;the degree, to which Colby I would sanction CIA activi- ties directed against Ameri- can citizens in area's of do- mestic operation. Colby, a clandestine ?Per. ative for most of his 22 years in the CIA, reiterated the claim made by formet ; director Richard M. Helms- Allot the agency's activities tj the tbintfititiist "apparatus" otivetmg a P1'081'041 of Filhittovl sion and guerrilla warfare. Of the some 20,000 persons killed in the process, he said, 87 per cent were by military forces and "only 12 per cent" by South Vietnamese police forces, , 4te not targeted against' 44inerican citizens. ? ;..4-}le told Symington,: howii :diler, that there ..were soniet iequiretnents' for- CIA opera. .tiOns /within- the :States: ? Maintaining itC Ij?ley headquarters,. iting and investigating ryi own employees, main-' taining contacts with "a:: lai?ge number of- AmeriCan?! iirins? for overseas informa don, and interviewing U.S. Citizens for information theyl *ay have on foreign opera.' dons. ,The United States,:he also, rioted, is A base for the col-: leetion ? of foreign ?intelli-; Once. It IS sometimes neces-! sary, said Colby, for agents "t:o appear not as CIA em- Oloyees but as representa- ttives of some other entity." Under the agency's char-. 'titt, the 1947 National Seen* Act,, it is 'stated that; 'the Agency shall have Mai police, subpoena,' law-en, Lot-cement powers or inter-' , dal security functions" irV,. the United States. But the 1947 statute con- tained a loophole which has, Served as a chatter for speJ idol foreign and domestic-,; Operations. It says that the agency shall "perform such ? dther functions and ,'duties Mated to intelligence af- Octing the national security! as' the National ?Securitifl Council May from time tett tone /direct." i; 4' Colby himself cited this' language yesterday as thel basis for the CIA's conduct of the-war iri Laos, in which the agency organized and' :Managed a clandestine guer-i title army of some 30,000 . Moo tribesmen and also prrit' =iided aerial support serv-3 ges. 70"The initiation of CIA ac- ttirity in Laos was a Matter i that did require the use of hitelligente techniques . It= was important that the: U.S. not be officially in-' ? Volved in the war," Colby: eirplaindd to Symington. ?'? At this point Symington; bridled, saying the agency's, tole in Laos "has done noth, tag to enhance ,the repute.; flan of the CIA." t,t1I4 agency was following na. tional policy in Lads. With' ,the present thrust of policy,: he said, the United States Is 'unlikely to become involved; Approved 2001408107-: .4A-RID.R7-7-00432R0004-0040000-1-6-, Approved For Relea6-21)01/08/07 : CIA-RDP77-00432R000100190001-6 WENING SUP and DAILY NEWS: Washington, D. C., Tuesday, July 10, 1973 itt." such a liirge;scale . destine role. ' "A covert 'operation can't J4 a very big'one," Colby as-; sized. "It stops being covert: when it gets very big: The. 'Bay of Pigs is an example Of that." Colby invited Congress to4 amend the CIA's charter by 48dding the Word "foreign": 'before the word intelligence,4 .in the 1947 act to provide further safeguard against in- trusion in the domestic sec-, ttor. :Such a change would :not, however, cancel... the:: 'agency's role in special op- , "erations decreed by the Na tional Security Council. Since the disclosure of ef-3 ;forts, both successful and unsuccessful, to involve the' 1CIA in Watergate-related af- fairs, there have been wide-, :spread depands on Capitol! 'Hill for a thorough review., :of the agency's operations...., :Concern was focused most: 'urgently on .the question of whether the CIA has been:A , operating, contrary to its'. .tharter, in domestic matters. J.?as in the Ellsberg profilel ,case, '.. If he we're ordered to "Carry out what he consid- ered . an improper activity for the CIA, Colby assured'..*, tSymington. he would quit. : ? : At the outset of the hear- ihg was asked:, to com- ment on a story that ap- peared in The Observer of ' ,London which charged that. the CIA engineered the 1967 coup by the Greek junta.; Colby repilied that the ,agency did not, "engineer": the coup but that he could. "not conclusively , answer whether or not Greek Presi- dent-designate George Papa-' dopoulos was ever on the ? CIA payroll. "We worked, ;With him from time to time in his official capacity," said Colby. . ' Sitting beside Colby the hearing room ,was John; 'Maury, the CIA's congres- :sional liaison matt, who was? :the agency's Station chief in, 'Athens when the coup ? was' staged. Maury was not asked' i!for his. recollections. ? ; olby. By Oswald Johnston . Star-News Writer 'SYltilINGTON: At any, ',time has Mr. Papadopoulosi ? been an agent for' the CIA? COLBY: He has not been1 arr.agent.. He has been an; 'official for the Greek gov- -ernment at various times, nd in' those periods from: time to time we worked with hi:if in his official capacity. 4 The persistent and wide- spread assumption bY many, critics of American policy , towards Greece that the Central Intelligente Agency, Wasinvolved in the military COO 'there has been given,, . Unexpected backing by one! \bf the CIA's most experi- enced career spies. He is William E. -COlby,', Pr?dent Nixon's nominee' to head the CIA Colby de-. ? flied during his Senate con-; . firmation hearing last Week:: that the agency actually.' engineered the 1967 coup;' But his subsequent admis- sion that the agency had '!worked with" the leading colonel in the military re-, gime, George Papadopou-. los, is being interpreted by, knowledgeable observers 'at the first formal admission', by a U.S. official of the ex- teriSive contacts the CIA had delveloped with Papado- poulos before, the coup took; , place. : During - his testimo :ny, 'Colby promised to give the .Senate Armed Services! Committee further details in executive session. Further,' testimony has been sched2 tiled for today, at a closed hearing in which it is under- stood Colby will ,be asked about the CIA budget and; other unresolved questions, involving the agency's au- thority as well as the Greek question. ??? 'During last week's hear-; ing, Colby also promised to discuss in secret the shad-' oWy Forty ,Committee, the high-level agency, chaired :by Henry A. Kissinger. 'through which the president, ',transmits authorization for; ? 011mdestine CIA operationS' 'abroad. MUCH OF the relation- .'hip. between the CIA and:, ints Coup Lin lhe Greek colonels has. leaked out in bits and! .pieces in the years since the: 'coup. - 'Papadopoulos, a former:: intelligence officer accord=! Om to his official biography, ? is known to have been a key official in KYP, the Greek intelligence bureau, Which; 'during the pre-coup period, reportedly got direct subsi- dies from CIA operatives in Athens. The question of 'direct" cash ,payments to Papado- pOulos also. was raised at- ', Colby's hearing by 'Sen. Stuart Symington, D- , Mo., acting Armed Services'. Committee chairman antl., the sole senator present at the session. Colby,'' who claimed to': have "researched" the, 'question of any CIA-coup connection after a widely ; publicized news report in ,the London Observer -re- peating anew the charges of CIA complicity with the col-,. ?Cnels, was unable to make a. direct denial. "I cannot answer that 'one, Mr. Chairman, for,? sure," Colby admitted. "I Just do not know. I do not, believe we did 'personally. I can say that we did not pay him personally, I ant:. sure." ? TAKEN with Colby'S. ,veiled admission of CIA 'contacts with Papadopouloa ? "from time to time ... in his, Official capacity," that re- Sponse is interpreted as tan,: tamount to an open ac4 knowledgement of CIA sub-. . sidies of the KYP. ' , In' the .view of one knowl- edgeable former CIA opera- ' tive who has kept close tabs :on the agency, Colby's testi-' mony on this point clearly' , implies close and continuing: ,cooperation' between the ',CIA and Greek intelligence 'during the years before ,the :coup. : The testimony according= ly gives further Weight to, .the theory, never proved' but firmly believed by many. 'responsible critics of U.S.. support of the Athens re- gime, that Washington fully :-expected ? and tacitly et'. 'couraged ?.a right-Wing', royalist coup in the spring' of 1967 to forestall the ex - ',Meted electoral victory ofir the' mildly leftist Center's Union party of George Pa-'1 Oandreou.. ; 1_ According to this readings' of the situation,the coup, ;was expected to have been; carried out, with support of 'King Constantine, by the" ,Greek military establish-: , ment. The theory further holds; that Papadopoulos, through'; his intelligence contacts,' got. wind of the plan and' staged a pe-emptive coup of, ? his own with the backing of anti-royalist extreme right-`, :wing colleagues in the'' Greek armed forees.' The little that is. 'known'. about CIA 'operations -in Athens before the coup sup- ports this ,,thesis, and Col- recent admissions sup-, . port it further. . THE CIA 'station chief ;in' :Athens from 195 to the end ? Of 1967 was Johri;,M. Maury,, ,now the agency S official in. charge of congressional ? relations. In the recollection4: of Amercians knowledge- able in the workings of the; U.S. Embassy in Athens at; ,the time, where Maury wasJ listed as a' first secretary, his main task was to keep ,up the cloS6 relations that, existed between U.8. policy and?The Royal palace. The presence of AndreaS ,Papandreou, the premier's Son, in the government as the minister in charge Of internal security affairs: heightened U.S. displeasure, , with the first left-leaning': 'government in Athens since the early 1950s. The young-ti !er Papandreou, who has; since become a vociferous lexponent of the theory that the CIA engineered the 1967 coup, moved early on to cut s off the direct CIA subsidy to, the KYP. ? I It is an open secret that Washington firmly sided with the King in his politi-i cally debilitating struggle' with the Papandreou gov-: ernment a struggle that ear- ly finally led to governmen-, tal paralysis and set the' stage for the coup. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100196001-6 I:Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-8 , The New York Times Magazine-/.July 1, 1973 Dark side up con ..???? By David Wise A few weeks ago, a Norwegian who had served ? In the anti-Nazi underground ?saw a newspaper . photograph and thought he recognized an Ameri- .can O.S.S. officer he had worked with during the. ? war and had known only as "No. 96." . The photograph was that of William Egan Colby, 53, a career covert operator for the Central Intel- ligence Agency, and chief of its supersecret Direc-'; torate of Operations, sometimes known as the "Department of Dirty Tricks." As part of the high- level game of musical chairs touched off by Water- ? gate, President Nixon had just named Bill Colby', to be head of the C.I.A. And there is an interesting fact about Colby in' the files at C.I.A. headquarters in Langley, Va. His official C.I.A. biography relates that he served in the 0.S.S. during World War H and contains this: sentence: "Shortly before the end of the war in' '1945, he led a team dropped in northern Norway , to destroy' a rail line used for transporting German' reinforcements." The Norwegian man who read. about Colby's appointment and thought he recog-, nized his picture got in touch through an intei-- mediary with an American woman who lives in. Kensington, Md., and who is a close friend of the :Colbys, particularly of Colby's wife, Barbara.' Could the woman find out Whether Colby was his old comrade in arms, No, 96? "I tried to find out," the woman in 'Kensington. told me. "And 'I'm still trying. Bill wouldn't say,, and Barbara doesn't know, or at least she says she doesn't knows" ; The story illustrates something about Colby that Ishould not be entirely surprising 'in a man who has spent. most of his adult life -as?well?a spy. A State Department official who had worked with! Colby in Vietnam put it this way: "He's soft- spoken, with a casual style. He has a forthright manner, but there's also a private Bill Colby. He's," a very private person." ? . Indeed, there are really two Bill Colbys; -given , his covert background there would almost have to be. There is William Egan Colby, the quiet, young ; "Foreign Service officer" in the American Embassy , ? in Stockholm and Rome in the nineteen-fifties, who , was simultaneously William Egan Colby of the ? ' C.I.A., an up-and-coming "black" (that is, secret) . operator working in the C.I.A.'s Clandestine Serv- ices under State Department cover. Later, there I was Bill Colby in Saigon in 1959, listed in the:: official Biographic Register of the Department -of State as a "political officer," and later.' as "first ' secretary" of the embassy. In fact, he became Saigon station chief for "the Agency" during this; period. Then, in 1962, he turned up at Langley as , chief of the Far East Division of Q,17.A.'s covert side.': There was Bill Colby back in Vietnam again in ' 1968, heading the "pacification" program, building; ; roads and schools and performing good works.' There was also Bill Colby who supervised the Phoenix program, designed to "neutralize" the Viet: cong, which its crities have thilegati *COS a program: ; of systematic assassination, murder and totture-r-? David Wise is the author- of "The Politics of Lying: Government Deception, Secrecy, and Power.", an accusation that Colby has vigorously ?denied, , under oath. According to figures Colby provided to a House subcommittee in 1971, however, the Phoenix program killed 20,587 persons between ' 1968 and May, 1971. That's right: 20,587. , Now there is Bill Colby in 1973, a devoted, :family man, a good husband and father of four, ,children, a devout Roman Catholic who regularly ,attends mass at the Little Flower Roman Catholic- :Church in Bethesda, Md., and who lives in an , :timSretentious white-brick house in Springfield, Md., ' ,a Washington suburb that is not as fancy as, 'say,, Chevy Chase. Bill Colby? -Why, he was neighbor-1 hood chairman of the Boy Scouts. . ? ? "I "Bill's always been involved in the Boy Scouts," .3 his wife said. Had be actually been One? "He was :a Boy Scout in China when his father was assigned ,there as an Army officer." It is a long way from the Boy Scouts to the ;C.I.A.'s Directorate of Operations, a euphemism that encompasses "dirty tricks," although perhaps :there 'are some similarities, too, if one is to judge :by the activities and style of E. Howard Hunt Jr., the most famous recent graduate (if he did grad- uate) of the C.I.A.'s covert division. - As the agency's Deputy Director for Operations, 'Colby?when tapped by Nixon to be C.I.A. chief? .was the man directly in charge of America's global -espionage and dirty tricks. C.I.A. is a bivalve; one dialf, the Directorate of Operations, collects informa- tion and engages in secret political operations. These are the spooks: The other half, the Directorate of Intelligence, staffed by scholarly types, analyzes 'what comes in. Colby's counterpart there was Ed- ' t ward W. Proctor, an economist. It is the operations directorate, the cloak-and-4 'dagger side, where COlby has spent his entire C.I.A. :career, that on occasion overthrows governments, bankrolls foreign political parties and guerrilla ' 'movements, has subsidized foundations in the' ',United States, and, so it is rumored, has even': engaged in the assassination of foreign political,, deaders. It is covert political operations that have. ?gotten C.I.A. into hot water over the years, fromi the Bay of Pigs to the "technical support" pro--i tvided to the burglars of Daniel Ellsberg's psychia-, trist. The Directorate of Operations is the foreign 'political-action and espionage arm of the United'; States Government; until this year, it was known' ias the Directorate of Plans. Colby, of course, is not ;that "demmed elusive" Scarlet Pimpernel; he has, ;chiefly dealt with Vietnam during the past 15 years, and as Deputy Director of Operations for only three',' `4months,' he can hardly be held accountable for ;everything that the Department of Dirty Tricks has'4 ;been up to since 1948. The C.I.A. was created by ; t Congress in 1947, but secret political action was not approved by the National Security Council until, 'the following year. Since then, the operations di- rectorate has, among other things: o Air-dropped agents into Communist China In-, In the early nineteen-fifties. Two . C.I.A. agents ;captured in 1952, Richard G. Fecteau and John T. Downey, have now been released; Downey was , freed by Peking in March after more than 20 yearsi iii GhineSe pribOn?: o Overthrown the Government of Premier 'Mohammed Mossadegh of Iran in 1953, thereby keeping the Shah on his throne. Not accidentally, When Nixon replaced Richard Helms as C.I.A. di- Approved For Release 2001108107 . - 77-00432R0001-001-90001-6- - Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 rector in December, 1972, he sent him out as hi Ambassador to Iran, one of the few countries in' the world 'where a former CIA: chief could C0111' fortably serve as ambassador. ? Toppled the Communist-dominated Govern- ment of President Jacobo Arbenz in Guatemala-. 1n1954. ? Attempted, unsuccessfully, to overthrow President Sukarno in Indonesia in 1958 with pilots and B-26 bombers. One of the C.I.A. pilots,', Allan Lawrence Pope, was captured, imprisoned,!, and later released through the intervention of: Robert F. Kennedy. ? Flown high-altitude U-2 spy planes over the; Soviet Union to photograph strategic missiles, an operation that came to a crashing halt when C.I.A. pilot Francis Gary Powers was shot down' on May 1, 1960. A summit meeting in Paris be- tween President Eisenhower and Soviet Premier , Nikita S. Khrushchev collapsed after the U-2 affair. ? Invaded Cuba at the Bay of Pigs In 1961 with ' a brigade of Cuban exiles in an attempt to over- throw Fidel Castro. Nearly 300 Cubans and four American pilots flying for the C.I.A. died and some '- 1,200 men were captured. It was the Kennedy Ad- ministration's worst disaster. ? Set up ti" secret base at Camp Hale, 10,000', feet high in the Rocky Mountains of Colorado, -, 1where Tibetans were trained to return home and ' fight against Communist China. The' operation, be- gun in 1958, almost?surfaced in December, 1961,, when armed troops protecting the C.I.A.'s Tibetans roughed up some civilians at gunpoint. , ? Advised and worked closely with the generals' who staged a coup against President Ngo Dinh Diem of South Vietnam in 1963. (While there is no evidence that President Kennedy or the C.I.A. ex-; pected Diem to be killed, on this point, Gen. Max- well D. Taylor has declared: ". . . the execution of a coup is not like organizing a tea party; it's a very dangerous business. So I didn't think we had any, right to be surprised when?when Diem and his brother were murdered.") at Spent tens of thousands of dollars?some re- ports say. millions -- in Chile in 1964 to elect Eduardo Frei, the Christian Democratic candidate' over Marxist candidate Salvador Allende. Negoti- jated with I.T.T., and made some unsuccessful ef- forts to prevent Allende from becoming President in 1970. o Trained and supported a secret army in Laos of at least 30,000 men?a figure acknowledged by the C.I.A. in August, 1971?at a cost of more than $300-million a year. - ? Subsidized the National Student Association, the nation's largest student group, and many other 'business, labor, church, university and cultural organizations through dozens of willing foundation, conduits?a scandal that erupted in 1967. . ? Provided Watergate star E. Howard Hunt Jr. with his famous red wig (invariably described in the press as "ill-fitting"), his miniature Tessina camera in a tobacco pouch, his false credentials and "a speech alteration device," which, according to 'those who have seen it, resembles a set of dentures. The equipment was provided by the Technical, Services Division of the C.I.A., and the C.I.A. 'claims it had no idea that Hunt would use it to burglarize the office of Ellsberg's psychiatrist. This listing of, accomplish. meats is necessarily ineorn, plete, both for reasons of space and because the direc- torate's work is not always well-publicized. The Director- 4 ate of . Operations does -not covet publicity, except about - feats like the Berlin Tunnel, which enabled the C.I.A. to ' Wiretap conversations in 1955 ,between Moscow and the . headquarters in East Germany ,of the Russian Army and the K.G.B., the Soviet secret in- telligence organization. But the list. could also in- clude C.I.A. operations in Al- bania, Singapore, the Congo, , --Vietnam,. Egypt and ?several.' other places. The C.I.A.'s black operators helped* to spirit Svetlana Alliluyeva out of India, and, according to for- mer agent Patrick J. McGar- vey, they stole the Soviet sputnik for three hours while it was on a world tour, dis- mantled it, photographed it and put it back together, with- out the Russians finding out. The operations directorate is no small-beer enterprise; It has its own air force in Indo- china, known as Air America; it -had its own navy during the Bay of Pigs (five ships leased from the Garcia Line Corporation in Manhattan); it has had its own radio sta- , tions (Radio Free Europe and Radio Swan, to mention two of the better-known ones), and it does a bit of honk publishing on the side. For example. the publishing iirm of Frederick A. Praeger said .i.n._1967 it had published "15 or 16 books" at the sugges- tion of the C.I.A. Under James R. Schlesinger, who succeeded Helms as C.I.A. head (and under Helms as well), word was put out in Washington that the C.I.A. was trimming down its covert political operations. The hu- man spy is being replaced by reconnaissance satellites, elec- tronic intercepts and technol- ogy. Black operations are no longer very important, or so it is said. As a result, Nixon's designation of Colby to a post requiring Senate confirmation raises the question of whether a career clandestine operator is the-: appropriate choice to head the CIA. at 'a time when ?so it is claimed?covert po- litical 'action is becoming a less significant tool of Ameri- can foreign policy. The Direc- tor of Central Intelligence wears two hats_ He is director of the C.I.A. (at $42,500 a year) but he, is also chairman of the board and coordinator of all United States intelligence agencies,. including the Pentagon's powerful Defense Intelligenea Agency, the F.B.I. and the ultrasecret National Security Agency, which eavesdrops on i worldwide' communications and makes' and breaks codes. :.The purpose of this vast intel- ligence "community". is to: , provide the President with the 'information and assessments:- * he needs to make -foreign- policy decisions. The Director of Central. Intelligence basi- cally serves as a manager and analyst. One of his most im- portant functions is to inter- : pret intelligence to estimate the course of future events. These are responsibilities that do not necessarily require t skill in clandestine political operations. Ann:ner question might be asked about whether Col- by, who has himself fig- ? gured at least peripherally in the Watergate investigations, is the proper man to head the C.I.A. at a time when the C.I:A. itself?and particularly Its covert side?has been en-j snared in various aspects of Watergate. The C.I.A.'s en- tanglements are complex' and 'varied, but they include the fact that both Howard Hunt and James W. McCord Jr. worked for the C.I.A. for more than 20 years; that the Cubans caught inside Democratic Na- tional Committee offices in the Watergate building also have ties to C.I.A.; that Frank Sturgis, one of those arrested in the Watergate, had C.I.A. credentials that had belonged to Hunt in the name of "Ed- ward V. Hamilton"; that the C.I.A. provided the disguises and equipment used in the ' burglary of Dan Ellsberg's doctor's office; that the C.I.A. prepared a "psychiatric pro- file" of Ellsberg?Snd, finally, the disputed accounts of how. the White House sought to ? list the C.I.A. in the Watergate cover-up. -Colby's name first cropped up, virtually unnoticed, in the Watergate investigation on May 15 when Senator Stuart Symington issued a long state- ment about various conversa- lions among the C.I.A.'s Dep- uty Director, Lieut. Gen. Ver- non A. Walters, Helms, H. R. Haldeman, John Ehrlichman and Patrick Gray. Walters has claimed the White House wanted him to block the F.B.I. investigation.of the Watergate burglary and of the campaign* funds laundered in Mexico, on , the grounds that the investi- gation would 'compromise C.I.A. operations in Mexico. Symington summarized Walt-,ers's testimony on this point SigraiREIten piic ?4i4 had testified that in Febru- ary, 1973, John Dean called C.I.A. Director James Schles-' inger and asked whether the Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 'C.I.A. could retrieve' a "pack-: to get it to Silbert, who had age" of documents from the asked for it in the. first place. F.B.I. The documents spelled Moreover, Cushman said he out, in embarrassing detail, sent the memo to Ehrlichman an the espionage espionage equipment given to Hunt and used in the Ells- berg break-in in 1971. "He [Walters] testified that he, Mr. Colby and Dr. Schlesinger discussed the matter and agreed there was no way, this could be done," Symington declared. Colby, in other words, by this account, sat in on a top-level C.I.A. meeting at which it was considered whether the agency's duties might extend to snatching back a package of incriminat- ing documents from the F.B.I., .at the behest of the White ,House. Walters testified that the C.I.A. would not play. ? 'That seemed to be a rela- tively marginal involvement of Bill Colby, but two weeks later, a little disagreement developed between Gen. Rob- ert E. Cushman Jr., former Deputy Director of the C.I.A.,' and John Ehrlichman, con- cerning just who had asked the C.I.A. to provide Howard Hunt with that wig and cam- era before the Ellsberg bur- glary. In a sworn affidavit exe- cuted on May 11, General Cushman, who left the C.I.A. at the end of 1971 to become Marine Corps Commandant, said that "about July 7, 1971, Mr. John Ehrlichman of the White House called me and stated that Howard Hunt . . . Would come to see me and request assistance which Mr. Ehrlichman requested that I give." But on May 30, Ehr- 'agreed to write another memo,' lichman said he could rernem- which he did, omitting Ehta ber making no such telephone , ' lichman's, name. call to Cushman. He did not, Perhaps the most' trouble.' Ehrlichman said, have even some, recurring problem in. "the faintest recollection" of Bill Colby's long career, how- ? placing the call. ever, is the Phoenix program, General Cushman, who which keeps rising, -Phoenix- served for four years as Vice like, to haunt him. If there President Richard M. Nixon's are two Bill Colbys, it is also national security aide, then true that there were two pac- held a press conference on May 31 -to announce that minutes of a high-level C.I.A. meeting on July 8, 1971, showed that he had specifi- cally named Ehrlichman as. having called on Hunt's behalf the day before. In December, 19'72, Cushman explained, says, "so 1 started looking around for the ablest Ameri- can 1 could find to replace me." As a special assistant to Johnson in the White House, at the suggestion of cial of the C.I.A. Konter had been impressed -Cushman's office said it had 'with Colby during their frea ipuent eontaets In 1966, when a .tape recording of the press . 1-Colby was ; the C.I.A.'s top conference, but parts were not clear, and they could !covert official in Washington provide only an unofficial jot the Fer test, - transcript. But this transcript ! Op trip back from Saigon includes the following ques- In NoVemhei, 1967, }tomer re- Along and answers: !la ed, kept asking me, . Q. And the C.I.A. suggested' l'What do you Want? What do to you that you first submit' 11 you need?' said I wanted a that memo to Mr. Ehrlichman? deputy ih algon. 'Who do A. I, think yes, but I don't ;you want?' jdimson asked. I know why. You'll have to ask- said, 'Mr. Oresident? II have them [unintelligible].'. . ,liny eye owl0 fellow named Q. Did you at any time: 1Bill Colby." ? communicate directly with ' As Koiner tells it, Johnson ?the prosecutor? picked up the telephone and A. I don't think I've ever ?eelled Walt W. Rostow, his, talked to the prosecutor, no.. ' assistant for national security: Q. So you submitted the 1 "Call Helms," be barked at paper work for the prosecutor. Rostow, "and get some guy through Mr. Ehrlichman? minted Colby for Korner." A. I think I did. . . . Korner adds: "The next Q. Who in the agency sug-E thing I heard was Dick Helms blowing a ,fuse. Helms was gested that you submit the memo to Mr. Ehrlichman? really p off. I don't A. Mr. Colby, as I recall. blame him. The first he had Q. Bill Colby? heard about it was Rostow , A. Yes. 'Calling for the President. But Cushman said Ehrlichman Dick 'calmed down later." asked him to tear up the Until he Was suddenly amemo because he, Ehrlichman,' tapped for Vietnam, Colby, it did not recall making the was whispered in the cloak- phone call about .Hunt. Since, rooms of Langley, was slated his own memory was hazy, for the hottest clandestine Cushman said (he had appara field job of all?station chief ently not yet discovered the in MoscOvv. In the operations minutes of the July 8 meet-' directorate, that post 15 the ing) he and Ehrlichman agreed major leagues; a C.I.A. agent that it would.. "not be very putting his head in the bear's fair" to name Ehrlichman in mouth, as it were, operating the memo. Cushman said he in the very midst of the Com- mittee for State Security, the Komitet Gosudarstvennoi Be- zopasnosti,1 the K.G.B.l Colby must linve thought he; WIta . going, because his kids bought, him a fur hat. it was of little use in Sai- gon. Colby had broken an. ankle ice-skating on the canal' that runs along the Potomac; but by March, 1968, after the, Tet offensive, he was in Sai- gon as Komer's deputy in CORDS, the over-all pacificaL tion program for South Viet- nam. In November of that year, Colby took over the top I job; !Comer was dispatched as' ambassador to Turkey. ification programs in Vietnam. The very word "pacification," of course, has rather ominous, Orwellian overtones. It is part of the loathsome jargon of the Vietnam war?a war that did violence to the English language, as well as to human. beings. Phoenix flapped into Earl J. Silbert, the Watergate Colby's life through the win- prosecutor, asked if he would 410.W of "pacification." be kind enough to write a ' The 'link to both programs memo describing just how was Robert W. Korner, a for-, Howard 'Hunt had come to met C.I.A. man (from the In his attention. In the memo, thlligence side) whom Lyndon, Cushman fingered Ehrlichman.- Johnson sent to Vietnam in :Here things get a little fuzzy,' May, 1967, to head up the but caahman said at his pros pacification effort. Kamer is conference that he 'sent the , voluble Colby .booster. " memo to John Elirlichmon, I caught a rare tropical disease in Vietnam," Konier which seemed an odd route! ; One ef Colby's former dep-. lu ties in the pacification pro- . , gram said ? gagging only slightly over the phrase?that. It was designed "to win the hearts and minds of the peo- ple." The task was, of course, enormously complicated by 'the fact that American planes and treeing were simultane- ously tieetrayit13 tImtaittittf4. But, said the aide, "we had a :road program, a village int- provement program, health programs, agriculture ? we brought in new strains of rice." Perhaps significantly, however, Colby,. as head of , CORDS, reported to the Mill.' tory, to Gen. Creighton ,Abrams, not to Ambasseclor Ellsworth , Bunker. Phoenix, the other face. ofe pacification, was also Oder Colby. It had begun inl; its earlier stages as a C.I.A.-'op- eration, and it was a feint United States-South Viet4m- ese program designed to iden- tify and then "neutralize"/,the Vietcong "infrastructure."IThe enemy was "neutralized" by , being killed; jailed, or "ral- lied," a word that meant per- suaded to defect. During Colby's period with the pacifi- cation program, 28,978 per- sons were captured or jailed, 17,717, "rallied" and 20,587 killed, according to the fig- tires Colby provided .in 1971 ' to the House Foreign Opera- tions and Government Infor- mation Subcommittee, headed by Rep. William S. Moorhead. Earlier, in February, 1970, Colby had tried to explain Phoenix to the Senate Foreign Relations Committee. Chair- man J. W. Fulbright asked whether captured Vietcong , were "executed," prompting the following exchange: Ma. COLBY: Well, let me say ? they are not legally executed, no ...Now, I would not want to say here 'that none has ever actually been executed, but ... the Government's pol- icy and its directives are that these people when captured are placed In detention cen- ters.... SENATOR CASE: This is not properly then defined in fact aa a counterterror operation? MR. COLBY: No, it is not, Senator. SENATOR CASE: You swear to that by everything holy. You have already taken your oath? MR. COLBY: 1 have taken my oath. A bit later, Colby told the Senators: ". . . I would not ? ..want to testify that nobody was killed wrongly or exe- cuted in this kind of a pro- gram. I think it has probably happened, unfortunately." The following year, in testi- fyihg to, the Moorhead sub- committee, Colby said that "the Phoenix program is not a program of assassination:" The Vietcong, he said, were killed as members of military units, "or while fighting off arrest," although there had been' "atime tliiikibW ittainaast. But one witness, K. Parton Osborn, a former military- AppFeved-For-Release-2004108/07 : CIA-RBP77-043432R0011100490001te Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 intelligence agent, told the subcommittee that suspects caught by Phoenix were inter- rogated in airborne helicop- ters. Some prisoners, he .said, were pushed out, to persuade the more important suspects' to talk. He said he had been on two such flights and saw two prisoners killed by being thrown out the door. Interro- gations in Vietnam, the wit- ness testified, also included "the use of electronic gear such as sealed telephones attached to the genitals of both the women's vagina and the men's testicles, and [the interrogators] wind the mech- anism and create an electrical charge and shock them into submission." Osborn also described other interrogations, which he said he had personally witnessed: "The use of the insertion of the 6-inch dowel into the canal of one of my detainees; 'ears and the tapping through ,the brain until he died." The 'witness also said a U.S. Army captain shot and killed a Chi- nese woman who had been :working as Osborn's inter- :-preter. According to Osborn's :testimony, the officer said ?"that the woman was only a 'slope' anyway., and it doesn't matter." Osborn declined to name any individuals who had been involved in these alleged epi- sodes. The Pentagon investi--. ,gated his charges and sub- mitted a classified report to the Moorhead subcommittee discounting the testimony. "Staff members of the House panel were astonished to find that the document said Pen- tagon investigators could find no records of a - Chinese woman killed during the time period Osborn described. "Do you really think," a staff member asked one of the Pentagon officials, "that an American Army officer who shot a civilian under these circumstances would report t it?" A central point of contro- versy over Phoenix is whether Vietcong were killed during capture, as Colby has sworn, or during subsequent torture and interrogation. Robert Ko- .mer says that "90 per cent of the Vietcong infrastructure Were killed in fire fights by 'the South Vietnamese mili- tary, in normal combat opera- tions. Ten per cent were killed .by police and the P.R.U. [Provincial Reconnaissance Units]." How many were killed under interrogation? "I would say relatively few. It must have been way under the 10 per cent figure," Ko- .. 'iner replied.' "The number: killed by torture would be ? very, very little." A second point in dispute. ' is whether suspected mem- bers' of the Vietcong were' 'killed resisting arrest, as 'Colby testified, .or whether substantial numbers were ;simply shot on the spot, as soon as they' were found, as Osborn has charged. In , a recent interview, Osborn' called Phoenix "an indiscrimi-? nate murder program." Certainly there is evidence t, that Phoenix claimed some 'innocent victims. During Col- by's testimony to the House subcommittee, Representative Ogden R. Reid of New York asked whether persons cap- ' tured had the right to counsel. No, said Colby, they did not. Then it was a "kangaroo trial"? Colby replied that the interrogation procedure "probably meets the techni- calities of international law but it certainly does not meet, our concepts of due process." Then this exchange occurred: MR. REID: My question is: Are you certain that we know a member of the VCI [Viet- cong infrastructure] from a loyal member of the South Vietnam citizenry? AMBASSADOR COLBY: No, Mr.. Congressman, I am not. Congressman Reid observed that "...there is the possi- bility that someone will be capttfred, sentenced or killed who has been improperly placed on a list." Colby did not disagree; he said he would like to see the legal pro- cedures improved because "I do not think they meet the standards I would like to see applied to Americans today." Some months ago, Osborn and a few other former intel- ligence agents formed the Committee for Action/Re- search on the Intelligence Community. CARIC opposed Colby's designation as C.I.A. chief, calling his rise within the intelligence agency "no- thing more than rewards for his having been the C.I.A.'s apologist for Phoenix to Con- gress." In language consid- erably less polite than that used by members of the Moorhead committee, CARIC's statement added: "Mr. Colby's ?professional qualifications as a mass murderer are not in question here; 'his appoint- ment to a powerful Govern- ment position is." While charges of torture in the Phoenix protieum rennln unproved, a directive issued in May, 1970, to Phoenix per- sonnel indicates that Phoenix was not for the, squeamish. 6 The directive, signed by Mar Gen. W. G. Dolvin, empha-4- sized the "desirability, of ob- taining these target individ-' uals' alive" and contained the peculiar phraseology that: American personnel were. "specifically unauthorized to 'engage . in assaSsinations." However, the directive said, "if an individual finds the 'police-type activities of the Phoenix program repugnant ,to him, on his application, he can be reassigned from the program...." (Italics added.) Two Bill Colbys and two pacification programs. Not one of Colby's friends or neighbors, or even his critics on the Hill, would, in their wildest imagination, conceive of Bill Colby attaching electric Wires to a man's genitals and personally turning the crank. "Not Bill Colby. . . . He's a Princeton man!" ? But at the House hear- ings, Congressman Paul N. McCloskey Jr. kept ask- ing niggling, Nuremberg-type questions. "flow far up in the command structure does the intelligence - collection proce- dure?how far up in the com- mand structure is the torture,. the brutality, the assassina- tions fully known to those in command and in charge of completing t,te mission? Does it go up the captains, the ,majors, t c colonels, the gen- erals, the Ambassador?" 'These are very . difficult questions, and by mid-1971, Colby no longer had to deal. with them in Vietnam. He came back to Washington, in part, friends say, to be with his seriously - ill daughter, Catherine, who died this April at the age of 23. Colby was named Executive Director of the C.I.A. by Dick Helms, early in 1972, and became head of the operations direc- torate under Schlesinger a year later. "Bill behaves in a calcu- latingly colorless manner,' one covert operator who worked with him for years said. "It's the way he chooses to deal with the world." One former agent, Patrick McGarvey, ruefully concedes that he experienced firsthand just how unobtrusive Colby can be. McGarvey was work- ing in the Saigon station. "This guy walks in. An inno- cent-looking little man with glasses. Mr. Peepers. He asked us what we do. 'Christ,' I said, 'we spend eight hours a tlytriyinti that nut,' IIe sat down and we talked about an hour and a half. I really vent my spleen. I hitched about all the Mickey Mouse detail. Then he sayi,', 'By the way, my names Bill , Colby." At the time, 1964,, Colby was chief of the CII.A.'S.; Far East division, and' there, were, McGarvey said, 'quite a few reverberations." (tater,' McGarvey quit the agency and wrote a book, "C.I.A.:: The Myth and the Madness,"` which he submitted for, clear.: ance and which the 4gency,- after some deletions-it per. mitted to be published;) Most officials whaa have, known Colby, not only fin the: C.I.A., give him very high: marks as a person, and for', his professional abilities.; Some, however, criticize him as an inflexible cold warrior,i, frozen in attitudes learned in, more than two decades as a spook. By all accounts, he. was a true believer in Ameri- can policy in Vietnam. (Al- though not in every detail; associates who served with him in the ,C.I.A.'s "black" Far East division in the early nineteen-sixties say that he, opposed. the coup against Diem and considered it a mis- take.) One former covert agent complained that Colby was "an adequate technician but not in a ciass with Allen Dulles and Bedell Smith. The agent added that C.I.A. per- .sonnel were fairly dancing with delight when Schlesinger left, "but I wonder if Bill Colby is getting in over his'' head." Other associates strongly defend Colby. as a persuasive, articulate bureaucrat who in- spires personal loyalty in his subordinates. Although a graduate of Princeton and Columbia Law School, Colby, unlike many of the Old Bdys who have traditionally domi- * nated the higher echelons of the C.I.A., does not come from a wealthy, upper-class back- ground. He is not, as they say, ."St. Grottlesex"?he did not attend one of the prestigious Eastern prep schools. Rather,,: he went to high school in Burlington, Vt. His wife, the former Bata. bara Heinzen, is a short, out- going brunette who shares her husband's Catholic faith. Very unassuming, no airs, but a well-educated, sophisticated woman. Their oldest son, John, 26, is married, has. worked for Henry Kissinger on the staff of the National Security Council and, is a classmate at Princeton of Edward Finch , Cox, was a groomsman at Tricia Nixon's aarana ration eraltilnet th7lz The Colbys have three other children, Carl, 22, Paul, 17. and Christine, 13. Colby is the third chief of Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 'Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 'Dirty Tricks" VS be named. head of the C.I.A. ? the two others being Allen Dulles and Helms. Dulles was put in charge of spying and coverte action in 1951. He was suc- ceeded by the late Frank G.; Wisner, a tall, Mississippi- born, dedicated cold-war op- erator who ran the coup in Guatemala. Wisner was fol- lowed by Richard M. Bissell, one of the fathers of the U-2, program and chief planner of the Bay of Pigs invasion. Beached after that, Bissell was succeeded by Helms. ' After President Johnson named Helms C.I.A. director ? ,in 1966; Desmond FitzGerald , took over the plans direc- 'tora'te' He died in 1967 and was succeeded by the "black- est" and least-known of the operations directors, Thomas' Hercules Karamessines, a New. 'Yorker and Columbia grad-, uate who served in the OSS.. and worked for the C.I.A. in Athens, Vienna and Rome under embassy cover. "Tom K.," ?as he is known among the operators, was retired last March in the Schlesinger 'shakeout, along with several other big-name spooks, like , Bronson Tweedy and Archi- bald B. Roosevelt Jr., both' former London station chiefs. 'Very prestigious station, Lon- don, and Cord Meyer Jr. has been selected for the post.' That's fine, of course, for Cord Meyer, but not so fine for some of the old Gro- tonians with the? reversible . names who have been put out to pasture while Bill Colby :made it to the top. Which, CHRISTIAN SCIENCE MONITOR 9 July 1973 CIA's superspy William E. Colby looks and acts like bespectacled, mild; mannered Clark Kent. But don't let him into a phone booth#: because he comes out superspy. - If President Nixon had in mind for his new head of the CIA a man who works in the shadows, he has him. He's the classic undercover man, the profes- ? sional's professional, notes Monitor correspondent Jack Waugh. For 20 years Mr. Colby has been what the spy trade calls a "black" operator, a "spook," a cloak-and-dagger man, an es- pionage agent, a master of the dirty-tricks department. So clandestine a man is he in theory and practice that not ,nauch ? is even known about his boyhood. He is said to have been a Boy Scout and the son of an Army career officer, to have 'attended high school in Bur- lington, Vt., and to have gone on to Princeton and graduated from ,the Columbia Law School. . , 'bill Colby? ? But the question is unfair.' .Perhaps there has been, all these years, only one Bill Colby and two United States ,Governments. One that pub- ' licly adheres to the highest moral 'principles in the con-' duct of its, foreign affairs, and' another that uses dirty tricks - and Bill Colbys to fight what Dean Rusk once called a "back-alley" war. ? With Colby designated di- rector of the CIA. and mov- ing out of the operations directorate, 'the secret show must go on. Along the intelli- gence grapevine the word is out that Colby's choice for the new Deputy Director of Operations would be William Nelson, who, until recently was director of the C.I.A.'s Far East division, the job He Is a very private person in a: very private line of work. It is said that during World War H in the OSS he was known as Agent 96. But not even that is certain. He won his big reputation in' the CIA in Vietnam where he headed Operation Phoenix, a project that Is still touchy. It' kept cropping up even as he was ,undergoing confirmation hear- ings here last week. Phoenix was part of a, pacification program but It was designed to neutralize ' the National Liberation Front. And while Mr. Colby was tending It, 28,978 front members were captured, 17,717 were "rallied" (persuaded to defect), and 20,587 'were killed. He comes to the pinnacle of his life's work after having been the CIA executive director and, since last March, head of its Operations Directorate (a eu- phemism for the "department of dirty tricks"), a department known to have once stolen a Soviet Sputnik while it was on a world tour, dismantled it, photo- ' graphed it, and put it back' together without the Russians ever finding out. It was an act worthy of Clark,, Kent.. ( Colby' used to have. When , Colby was named chief of' the operations directorate, he moved Nelson up to be his. deputy. Like Colby, Nelsqn is a career clandestine operator.. He is said to be of medium: 'height, , with light brown' hair, and wears horn-riniined glasses. There is a William E. Nelson listed in the State iDe-' :partment's Biographic Regis- ter. He is 52, Columbia Harvard, and, it says, was a researcher for "Dept of Army," then a political ;offi- ?cer in Tokyo in 1950, and turned up in. "Dept of Navy? on Taiwan from 1959 to 1965. It also says he has been back at the State Department since 1968. But for some reason he isn't listed anywhere' in the . ? department's - phone book. El NEW YORK TIMES 4 July 1973 Applications r .Ipbs in' C.!. A. Have Dect7ined Since Scandal WASHINGTON, July 3 (UPI) ? The Central Intelligence Agency has received fewer ap7 plications for employment since the Watergate scandals erupted, but the Federal Bureau of In- vestigation and the Secret Serv- ice report no change in the rate of application. A spokesman for the C.I.A. said yesterday that there had been a slight "but clearly, dis- cernible" decline in the num- ber of formal applications for employment received by that agency in the last few months. He said, however, that it was too early to tell whether it re, flected a disenchantment 'oil the part of ,young Americans with government intelligence operations because of the Wa- tergate case or simply reflected hanging employing conditions In some parts of the country. Both the C.I.A: and the F.13.I, have been implicated in the Watergate scandals. The F.B.I. has been accused of having failed to investigate thoroughly the events surrounding the break-in and bugging of the Democratic National Headquar- ters in the Watergate building complex on June 17, 1972. Upheaval at Bureau The FBI has suffered an in- ternal upheaval since the death last year of J. Edgar Hoover, it first director, and efforts to find an acceptable replacement for him. L. Patrick Gray 3d resigned as the bureau's acting director In April when his Involvement with the Watergate cover-up was disclosed., The C.I.A. has been accused of aiding a Watergate conspira- tor in a burglary at the office ,of Dr. Daniel Ellsberg's psychi- atrist in Los Angeles. ' "We haven't noticed any de- cline in employment at the F.B.I.," a spokeranan NM. "Of the 8,709 04oritt4 '?,4fe einplo,9 thoril15 an averafso turnovef of 300 agents a .year- There have always been about 30 a. plications for every agent's slot and there still are." A spokesman for the Secret Service, which authorized costly improvements in President Nix- on's homes. said, "there is no reason to think the Watergate has hurt our enrollment." He said that turnover among the agents hired to guard the Presi- dent and other top Federal offi- cials was minimal. "We 'maintain a continual waiting list of more than 100 prospective agents every year," the spokesman said. The Secret Service has 1,227 agents based in 62 field offices around the country with a total employ- ment of 2,800, including cleri- cal and administrative staffs: A C.I.A. spokesman said that formal applications' in the past had been subject to regional employment conditions. Whethl, er this is the case in the pres- ent decline, which began in March, he said, has not been subjected to statistical studies that would allow firm conclu- sions. The C.I:A. spokesman said that, in general, recruiters for he agency had found for sev- eral years that college students were being drawn into the inner cities to work. 1The F.B.I. Also said that it had had some' re- cruitment problems among coh lege students who were drawn to private business because of larger salary prospects. The F.B.I. spokesman said "the glamour aspect" aided re- cruiting in all security opera- tions. "The lure of becoming an In- ternational spy or an F.B.I. agent, involved in cops ami robbers," he said, "always in a bigger come-on than the peLsi- Witty of ftilfillhel n rlerlest or adminIstroilVti Ttir.vo re 1 'WM olfavioAl i Ito 1)14- reatt. ---Apiaroved-For-Release-2004108107 . eFA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 WASHINGTON POST 29 June 1973 "7 Hunt I ni estittle8 l es to .? About robe Of Kel iedy ? By Susanna McBee Washington Post Staff Writer , Convicted ? Watergate con- 1 ..spirator E. Howard Hunt told a House subcommit- tee yesterday that he used; ;Central Intelligence Agency. 'equipment to conduct an In- terview probing the private 'life of Sen. Edward M. Ken-, enedy (D-Mais.). Rep. Lucien N. Nedzi (D- Mich.), chairman of the. ;House Armed Services Sub- 'committee, which listened to Hunt for more than nine hours, expressed shock -at "the CIA involvement in a. ."domestic operation of a clearly political nature, a hatchet job." The National Security Act of 1947, which created the. CIA, was designed to keep , it from conducting domestie , operations. Hunt's interview with Clif- ton DeMotte, a General Serv- . ices Administration employ- .ee in Rhode Island, during the summer of 1971 was re- vealed by The Washington : Post last February. But Hunt's testimony yea- terday disclosed for the first time that he used CIA equipment td disguise him- self and establish 'a false identity as "Edward War- ren to ask DeMotte if he knew any scandalous mate- rial about the Massachusetts Democrat. . DeMotte, 41, was public relations director of the Yachtsman Motor Inn in Hyannisport in 1960, wlidn the late John F. Kennedy used the hotel as a head- quarters for his presidential ; campaign. - Nedzi said Hunt told the subcommittee that the in.. formation he received from DeMotte "wasn't anything' ,a Worthwhile" In February, ; DeMotte told The Washing- f ton Post that Hunt wanted him to "do work on Chappa- quiddick," but that he re- ' fused. Necizl quoted Hunt as say- ng an tinkle titi fed person 0 outside the admieistration had suggested that he see h DeMotte and that former White Ifouse special counsel' ,s ,Charles 1Y. Colson author-!, ized him to conduct the in- t, terview in Providence, R.I. 0 Yesterday's development, 0 brought to four the number ,w of incidents where CIA'- c equipmeht Wati 'Used by the "plumbers," a: rn White House team set up in k 1971, supposedly to stop se- curity leaks. 't The ' others were the N tWatergate'break-in In Nine. 1972; the September, 1971,, leirglary of the office of ,Daniel Ellaberg's psychia- trists; . and Hunt's inter- view in the spring of 1972, with Dita S. Beard, the In- ternational Telephone and 'Telegraph Corp. lobbyist ac ? cused of writing a memo t linking ITT with a plan to ,Underwrite part of last' year's Republican National , Convention. ? Hunt, a membr e' bf ? the plumbers" team, has been: 'accused of burglarizing the .13everly Hills office of the psychiatrist, De. Lewis Fielding. Partly because of .the disclosure of that break- in, ' the government's Pehta- gon ? Papers ease against , Ellsberg was thrown out of. court. . In the closed hearing,' Nedzi said,, Hunt described how, as a White House secu- rity consultant hired by Col- son, he came to the CIA in July, 1971, and received such equipment as disguises phony papers to establish a new identity, a tape recorder , and a camera. ? Gen. Robert H. Cushman, now the Marine commandant and then the deputy direc- tor of the CIA, has told sev- eral congressional commit- tees that CIA assistance to Hunt stopped ,in late Au- gust, 1971. Nedzi said the equipment was finally re-, covered after the Watergate arrests. Cushman said that he ap- proved CIA aid for Hunt af- ter receiving a phone call July 7, 1971, from then While House aide John D. Ehrilichman. However, Ehr- nehmen has testified that he doesn't have any recolice- ? tion of calling Cushman that ; day. Nerizi 'said Hunt's testi- mony contradicts neither ae-k count. He quoted Hubt' as saying he got a call from the, CIA setting up a meeting for him with Cushman. d - Hunt also told the House' investigators that he has re- eived $156,000 from anony- mous sources for attorney ees plus additional money for "support" Hunt said he eceived $75,000 of the money after talking this March with Paul O'Brien, an attorney foe President Nix- n's re-election committee. "To this day Hunt claims , C doesn't know where the noney came from," ? Neidi aid.' Hunt also denied that: t was a payoff or "hush money." Nedzi said that $10,- 00 cash found on the body f linnt's wife, Dorothy, ho was killed in a plane , rash last Deceiriber, was fin of the "support" oney, Most of the money Was unneled through' Hunt'n orney, William 0. Bittmano ezdi said. Hillman has tes- NEW YORK T IMES 29 JUNE 1973 CIA. AID TO HUNT IN RAIDS HINTED, By MARJORIE HUNTER ? Special to The New York Times WASHINGTON, June 28t- , E. Howard Hunt Jr., a convict- ed Watergate conspirator, was,; quoted today as saying he had , used disguises and other equip, ment supplied him by the-Cen- tral Intelligence Agency for- projects other than breaking into the office of Dr. Daniel Ellsberg's former psychiatrist, Hunt's testimony came clUr- ing day-long questioning by a House Armed Services subcom- mittee investigating C.I.A. In- volvement in the Watergate, affair., It was his first appear- ance before any of the Senate and House cbmmittees investi- gating the Watergate scandal. While the session was closed, some of the highlights of his testimony were discussed later by Representative Lucien' N. Nedzi, Democrat -of Michigan, who is chairman of the sub- committee. Mr. Nedzi quoted Mr. Hunt as saying that he had used some of the equipment?a wig, identification papers, and other items?obtained from the C.I.A. ' in the summer of 1971 for sev4 eral projects in addition to the break-in of the Cali'fornia psy- chiatrist's office. Asked if thr:,e activities were illegal, Mr. Nedzi replied: "They were to my mind." However, he declined to gay, what the activities were. It had been disclosed pre- viously ? during grand jury questioning and court proce- dures?that Hunt had partici- pated in 'breaking into the psy- chiatrist's office in September, 1971, was the first indication of C.I.A. equipment beingdused. by Hunt in other break-ins. Hunt was involved in 'tified that the money was delivered to his home after he received mysterious calls from a?"Mr. Rivers." The congressman said. Hunt specifically denied ? charges made by former *White House counsel John W. Dean III that Hunt had demanded money in return, for silence on the Watergate scandal. ? Hunt also denied that he asked for or received any ai- surance of 'executive clem- ency. y Nedzi, whose subcommit- 'tee Will quiz Colson today, ,said Hunt repeated his charge that Colson told him to fake two State Depart, ment cables linking the- Kennedy administration with the assassination of, Sfititti Vietuani PNsitittit Ngo Dinh Diem in Septern- her, 1963. The phony cables were passed to a reporter, for Life magazine, but were not published. Colson has denied the allegation. 8 , White House project investigitr ing Dr. Ellsberg's connection with the disclosure of the ;se- , oret Pentagon papers describing United States involvement;, in, Southeast Asia. Top C.I.A. officials -had dis- closed earlier that the agency- had given Hunt various emit/al ment and disguises to conduct' what Hunt told them wasya "one-time interview" on a sec-, urity matter. , ' Mr. Nedzy said that Hunt's : testimony seemed' to indicate that Charles W. Colson, a cor-: mer White House aide, might have been involved in some of the activities described by Hunt today. Mr.' Colson has maintained that he was not involved in the Watergate 'events. Mr. Nedzi said that Hunt 4tid the subcommittee that he had been hired for the White House, job by Mr. Colson and that he- had dealt "very closely" with' him with respect to the varioua projects the so-called "plumb= ers" were involved in." . "The plumbers were members. of the team set up to investi- gate various leaks on securitY matters, including the Pentagons papers. Asked who had opened the' , door to the C.I.A. for Hunt, Me. Nedzi said: "He did mention' he had spoken with Mr; Colson with. respect to possible C.I.A. ' assistance. It was not clear as,- to how Mr. Colson would hare- dle it. It was left at that.' .* Mr. Colson told a Senate pa- nel, last week that he had men- tioned to John D. Ehrlichman, a top White House aide at the. time, that Hunt was anxious, to establish "liaison" with the- agency to interview Col. Lucien Conein ,a former agency opera- tive in Southeast Asia. Mr. Colson insisted, however,' that he did not tall the C.I.A. , on behalf of Hunt. Asked if Mr. Colson knew.' what Hunt, wanted the disguise' and equipment for, Mr. Nedzi, replied: "Yes." He would not elaborate. . Mr. Nedzi also quoted Hunt* as reaffirming an earlier state,' ment that he had been ordered'. by Mr. Colson to fabricate ca- bles designed to show that the: Jonh F. Kennedy Administra- tion was deeply involved in, overthrowing the Diem regime",i in South Vietnam in 1963. Mr. Colson has denied issuing' such an order hut has said that; Hunt may have misunderstood; something that he told him. Mr. Nedzi said that Hunt, in`, his testimony today, gave a third version of how he gained access to the C.I.A. that sum- mer. Gen. Robert Cushman, for..: - mer deputy director of the C.I.A. and now commandant of, the Marine Corps, told Congres- sional panels last, month that'.' Mr. Ehrlichman had called him when he was with the agencyt and asked It to cooperate with Hunt, who had just been liked its a White House SettlriW Mr. "pert.Ehrlichman later denied he had called General Cushman and further denied any involve-. ment in gaining agency access for Hunt. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 ;Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-8 NEW YORK TIMES 30 JUNE 1973 C lson Confirms ackin 6 b enies Knowi (11 e'in n(D'd Tr,,r JuL,',.0 wry ? -7, 7 2 fs-. numc CO LAO Aid, st, ? ,He Also Disputes Data Ey Ehrlichman and Dean ? By MARJORIE HUNTER SInd?I to The New York Times WASHINGTON, June 29 ? month-old deposition in a su t 'Charles W. Colson, a formef bY the Democratic National ,White House aide, confirmed 'to- Committee was released upon day that he had authorized E. being filed in Federal court. Howard Hunt Jr. to investigate - Both in his subcommittee testimony and in his deposi- tion, Mr. Colson indicated that John D. Ehrlichman, President Nixon's former adviser on do- mestic matters, arranged for Hunt to obtain access to C.I.A. equipment in the summer of 1971. This disputes Mr. Ehrlich- man's denial that he had asked the C.I.A. to assist Hunt and confirms testimony of Gen, Robert A. Cushman, then the Deputy Director of Central In- telligence, Mr. Ehrlichman had called and asked him to give Hunt whatever assistance he needed. Mr. Colson conceded that he , had told Mr. Ehrlichman that Hunt wanted to establish liai- son with the C.I.A. to investi- gate a security matter. The witness testified that Mr. Ehrlichman told him, some days later, that he had called General Cushman and arranged for agency assistance to Hunt, Mr. Colson also disputed an- other former White House col- league, John W. Dean 3d, who was ousted as counsel to the President on April 30. Mr. Dean. suggested to the Senate Watergate committee this week that Mr. Colson had been involved in a number of "dirty tricks" and participated In the Watergate cover-up, Commenting on lists of White House "enemies" and "political opponents" that Mr. Dean said had been prepared by Mr. Col- son's office, Mr. Colson said they were merely guidance for invitations to White House so- cial affairs and appointments to 'boards and commissions., Mr. Colson denied that ?ei- ther he o this former assistant-, the late George Bell, had writ- ten what he called the "de- famatory remarks" beside 20, of the names on the "enemy list." "It's /tot my language, it's :not Bell's language," he said. "T-resent it, and I hope Dean Will tell the truth." He said he did not know who had written the comments about the "20 enemies." Mr. Colson also disputed a suggestion by Mr. Dean that he IColson] had sought 'executive Colson smiled and replied: clemency for Hunt. 'It's an easy name to soon "I never talked to the Pres!. Only five letters," Acutally, his tdent about executive elem. name has six letters. ency," Mr. Colson said. While he was testifying, his Mr. Colson furthef ? denied activities of Senator Edward M. Kennedy during the summer of 1971. But Mr. Colson denied that he had been aware that Hunt had sought and used Centtal Intelligence Agency disguises and other equipment for use in the project. Thus, his story conflicts in one 'major respect to that of Hunt, who said yesterday that Mr. Colson had authorized him ? to interview a "Clifton De- motte" about possible scandal- ous information ' on Senator Kennedy and that Mr. Colson ? .had known beforehand that he ? intended to use C.I.A. equip- ment in carrying out the as- signment. Mr. Colson gave an account of his role in the Kennedy investigation as he emerged after five hours of questioning . by a House Armed Services subcommittee investigating C.I.A. involvement in the Watergate burglary. ? ' Something One Does He dismissed the Kennedy matter as merely the kind of thing one does in the world of politics. "When someone comes to you and offers information on ? a prospective opponent and you turn him down, either you are naive or you don't stay in politics very long," he said. At that time, Senator Ken- nedy was considered high on the list of. those who might ? capture the Democratic Presi- dential nomination a year later. Hunt teold the subcommittee yesterday that, with Mr. Col- son's blessing, he had inter- viewed Mr. Demotte, a former resident of Hyannis Port, Mass., site of the . Kennedy family compound, but found the in- formation useless and dropped ? the matter. Sources within the closed subcommittee session today de- scribed Mr. Colson's perform- ance as virtually flawless, with no apparent holes in his re- peated denials of any involve- ment in the Watergate affair. Later, asked why his name "crops up so often" in Water- gate accounts given by former White 'House colleagues Mr that he had ordered Hunt to fake cables designed to impli- ,cate President Kennedy in the assassination of President Ngo ?Dinh Diem of South Vietnam in 1963, or that he had ordered Hunt to check out the Milwau- kee apartment of Arthur Bremer after the near-fatal shooting of ?Crov. George C. Wallace of Ala- bama last year. Hunt has said that Mr. Col- son ordered him to fake the cables and ordered him to check the Bremer apartment. Mr. Colson also denied' a charge made yesterday by Sen- ator Lowell P. Weicker Jr., Republican of Connecticut, a member of the Watergate com- mittee, that Mr. Colson had tried to plant articles with newsmen that Senator Weicker was guilty of campaign irregu- larities and that he was think- ing of switching parties. - Mr. Colson's deposition be- fore the Democratic party's lawyers was recorded May 28. With a few exceptions, the ma- jor points in his account have since been made public in newspaper interviews. - The Kennedy inquiry, he said, ,was Hunt's idea. He said that in July, 1971, one of Hunt's public relationt associ- ates got a telephone call from "someone in Massachusetts" with unpublished information' about' the" drowning of Mary' Jo Kopechne in Senator Kert-j necly's automobile' on Chappa- quiddick Island in August, 1969. N "Mr. Hunt asked me if I would like to have' him try to get that information and I said, ,'Certainly,'" Mr, Colson testi- fied. Mr. Colson also acknowl- edged authorizing another Hunt errand, the trip to Den- ver in a red-wig disguise to interview Mrs. Dita Beard, Lob- byist for the International Tele- phone and Telegraph Corpora- tion, about her 'purported memorandum linking an I.T.T. donation to the Republicans to Government help in a corpora- tion case. But Mr. Colson said that that trip, too, had been initiated by Hunt. Mr. Golsen said that the White House paid Hunt's ex- penses for the trip to New Eng- and on the eKnnedy investiga- tion. He said he did not know who paid for the Denver trip. Mr. Colson's deposition in- cluded denials that he knew of the Watergate bugging plans in advance. For the. first time, however, Mr. Colson said that within a week aftr the Water- gate break-in, John W. Mitchell, the former Attorney General and Nixon campaign manager, told him that his friend Hunt was implicated in the bugging raid ."up po his ears." Approved For Relcasc 2004108107 :-CIA-RDP77-00432R0001001.900.01-8 . WASHINGTON STAR 29 June 1973 By Fred Barnes Star?News Staff Writer E. Howard Hunt has dis- lased that he used a dis- ise provided by the Cen- ral Intelligence Agency .. tiring a White House inves- igation of Sen. Edward M. ennedy's auto accident at ' happaquiddick Island. Hunt . said he wore the isguise, and billed himself s "Edward Warren" when,? n August 1971, he ques-' ioned a man who was sup. posed to have information about the accident that vould be extremely damag- ing to Kennedy. The probe of the 1969 acci- dent, ,in which Mary Jo Kopechne drowned, was. authorized by White House counsel Charles Colson', Hunt said. The disclosure by Hunt, convicted Watergate con- spirator, came yesterday during nearly nine hours of testimony before a closed- door hearing of the House Armed Services subcommit- tee. , ? COLSON testifies today before the subcommittee, which is looking into the extent of CIA involvement in the Watergate break-in and other deomstic? activi- ties. By law, the agency is barred from domestic in- volvement. Rep. Lucien Ncdzi, I)- Mich., the chairman of the subcommittee, gave an out- line of Hunt's testimony.?. Besides the Chappaquiddick inquiry, Nedzi said, Hunt testified that he: ? Received more than $170,000 in cash from undis-' dosed sources to cover his legal fees and other expen- ses after he was convicted in connection with the Wa- tergate affair and sen- tenced to 35 years in jail. O Used the CIA disguise Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 '-during an interview hi the: 'spring of 1972 with Dita Beard, a lobbyist for Inter-, national Telephone & Tele- graph who allegedly wrote, a memo spelling out skin between the corpora- tion and the Nixon adminis- tration. 0 Utilized the disguise and 'other equipment from the CIA during the burglary in .September 1971 of the office of Daniel Ellsberg's psychi- atrist and the break-in in June 1972 at the Watergate headquarters of the Demo- cratic National Committee. '0 Denied that he had ever sought executive clemency from President Nixon or that he was ever offered any sort of pardon by the White House. It was Colson, Hunt said, who promised to help clear the way for him to gain ac- cess to the CIA headquar- ters at Langley, Va. Colson was fully aware that Hunt was seeking a CIA disguise to conduct the probe of the Chappaquid4 dick incident, Hunt said.. Colson has given a different account to a Seoate subcom- mittee, saying that he thought Hunt wanted only to question a CIA operative about security leaks. Once he obtained the dis- guise and other equipment, Hunt said he arranged to Interview a man named Dernott who was supposed to have information about a party attended by Kennedy! before the fatal auto acci- dent-But the information turned out to be worthless,:, Hunt said. The probe of the Kennedy accident was the second. ordered by the Nixon ad- ministration, which includ- ed Kennedy on its list of "enemies" that was made. public this week. ? ' THE FIRST investigation' 11, '? I was conducted by the FBI , on White House orders, sources said, . and it re- vealed only that Miss Ko-, pechne had once been bilked out of several hundred dollars by a young man. Nedzi said that there is no. evidence that CIA officials knew Hunt's intentions. In- stead, agency officials have testified that they were merely fulfilling a request ? from the White House when . they provided the disguise, !Nedzi said. But the congressman Said. that the fact that the dis- guise and other material, .was "obtained from the CIA for a clearly domestic oper- ation is troublesome." Hunt asserted in his testi- mony that his boss in the. Plumbers, Egil Krogh, or- dered the burglary of the. ? office of Ellsberg's psychia- trist in Los Angeles. Krogh, has conceded that he issued such an order. But Hunt said he under- stood that for mer Attorney General John N. Mitchell, ? Nixon campaign official Jeb ' Stuart Magruder and de- posed White House counsel John W. Dean III all aprpoved the break-in. During his tenure on the White House team, Hunt Said he was assigned to as- sess the abilities of Donald ? Segretti, who has since been accused of being a political saboteur for the Republican party. HUNT CONCLUDED that !Segretti was a shallow indi- vidual who was prone to propose. "College-type ? pranks" that would not be useful to the GOP. After he pleaded guilty and was convicted in the Watergate burglary, Hunt . said he requested money from Paul O'Brien, an at- torney far the Committee fon,the Re-Election of the , 3.0 l President. Hunt claimed he needed money for his lawyer's fee'. ,-and for the support of his, al;family. But he insisted he? 'never demanded any sd- called 1- rh money to re;, ,main Si at about the in- volveme of others in the Watergate scandal. ? Some time after he =del, his plea for funds, Hunt? said, his attorney began to , receive phone calls from unknown persons. At one' point, a caller identified himself as "Mr. Rivers," ,Hunt said. Finally, a caller cleared -the way for the delivery of :funds to the home of Hunt'sl 'attorney, William 0. Bitt-, , man, Hunt testified. HUNT SAID $156,000 was received which he used to pay his attorney and at. least another $15,000 was received for his family. , Hunt said he assumed that the funds were provid- ed in responss to his request to the Nixon re-election committee. , ? Nedzi said that after Hunt' was jailed, Hunt's wife con- tinued to receive funds. She lwas carrying $10,000 in cash when she was killed in a , Chicago plane crash last December. Hunt denied that his wife had ever told James Mc- Cord, another convicted Watergate conspirator, that the Nixon administration was attempting to foist the ,blame for the Watergate' break-in on the CIA ? as.'" ?McCord has claimed. Nedzi said his subcomrnie- tee has heard conflicting : testimony from about a daz- ?en witnesses that it has in- terrogated so far. He said' that none of the witnesses 'has implicated President Nixon in any illegal activi- ties. Approved For Release 2001/08/07 : 'CIA-RDF'77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 YORK TIMES 29 JUN 1973 x-Presidential Counsel Tials of White, . House s Concern ?ver Demonstrations Conversation with Walters Q. This is another very lengthy question: Mr. Dean, you have testified concerning your conversations on three ' different occasions with Gen. ! Vernon Walters, the deputy ! director of the C.I.A., begin- ning on the 26th of June. General Walters prepared a ; memorandum for the record of each of these conversations : with you. In General Walter's memo- randum record for your meet- ing with him on 26 June, you are reported to have asked General Walters whether . there was not. sonic way that ? the Central Intelligence Agen- cy could pay hail for the ? Watergate defendants and if the men went to prison, could C.I.A. find some way to pay? . their salaries while they were in jail out of covert action i ? ?funds. ! In your testimony, you made no mention of asking ? General Walters whether the C.I.A. could pay the Water- gate defendants bail or sal- aries while they were in pris- on. Was this an intended , omission on your part in the interest of saving them or do .you deny that you made ? these specifict f General Walters? ? A. I recall I did make those? ; requests and as I say, the . ornissioin was not intention- al. I have nevery really read ? ? in full General Walter's de- , , positions. So the answer is , that, in fact, I recall that, . that was discussed. . .1 ! Q. Mr. Dean, I believe you testified that on March 26, while you were at Camp - :David, you called Mr. Ma- - '.rotilis, the attorney for Mr. , Liddy, and asked for a state- ment by Mr. Liddy that you had no prior knowledge of the Watergate break-in. Is , that correct? A. That is cor- rect, and I have so testified. ; Q. Now, at whose instances , ? did you contact the C.I.A.; ? that is, General Walters? A. After discussing this with Mr. ; Ehrlichman, he thought that I should explore the possible use of the C.I.A. with regard I to assisting in supporting in ; dealing with the individuals who had been involved in the incident. Q. So the C.I.A., an effort was made to involve the C.I.A. also the F.B.I., Mr. Gray, destroyed some docu- ments which came from Mr. Hunt's safe, did he not? A. That is correct. Q. Now, I call your atten- tion to what I designate as . ; Document Number 3 and ask ? if you will read this docu- ment to the committee. A. This is a memorandum . for Mr. Huston, subject, Do- mestic Intelligence Review: . I might add here it is from Mr. Haldeman to Mr. Huston ? ?"The recommendations you , have proposed as a result of ; the review have been ap- ? proved by the President. He , does not, however, want to l follow the procedure you ? ? have outlined' on Page 4 of ; ? your memorandum regarding implementation. "Ile would prefer that the thing simply be put into mo- tion on the basis of this ap- proval. The formal official' , memorandum should, . of ? I'course, be prepared than 1fect, was a propose) to set 'to carry it out. . representatives from the "I realize this Is contrary F.B.I., C.I.A., N.S.A., D.I.A., , to your feeling as to the best and the counter-intelligence :?way to get Sis done. I feel units of the Army, the Navy, ! very strongly that this pro- and the Air Force to furnish cedure won't work and you information about the activi- had better let me know and ties of all of these agencies we will take another stab at to the White House? it. Otherwise let's go ahead." A. I believe that is correct. Q. Now, that letter can Q. Now, as a lawyer, you only be construed as a state- are aware of the fact that ! meat on the part of Mr. H. the Section 403(d) of Title .R. Haldeman to Mr. Tom 50 of the U.S. Code provides : Charles Huston, the aide in mat the C.I.A. "shall have , charge of domestic intern- no police, subpoena, law en- , gence, to the effect that the forcement powers, or internal ? .President of the U. S. had security functions." approved his recommenda- . A. Yes, I was entirely lions about removing the aware. of that. . limitations on surreptitious; Statute on C.I.A. or rather, on electronic sur- veillance and penetration, Q. Yet, despite the fact that the statute forbade the C.I.A. exercising any internal security functions, here was a coordination of activities of the C.I.A. in the domestic :intelligence field, was there not? And notwithstanding the fact that the statute gave them no internal security functions, they were called upon to evaluate domestic intelligence-gathering by other agencies? ? A. That is correct. the prior knowledge of Mr. ? Q. Did you ever receive .Mitchell? ; any instruction from anybody A. I do not know that for to the effect that the Presi-. a fact, no. sir. When I talked to Mr. Mitchell about .it, it ;dent had rescinded. these i plans recommended by Mr. had reached the stage that Huston?i they wanted to do something.' A. Not To the contrary, as Mr. Mitchell and I talked this document indicates, on ? about it and we decided that k Sept. 18, I was asked to see ; the best thing to do was to what I could do to get the first step started on the create the I.E.C. Q. Now, the I.E.C., ef- . document. _ . . !should be the device by which up a group representing or surreptitious entry or bur- ? ? glary, the use of mail cover- ? age, and of sources of infor- ? !Illation on the campuses and the military undercover agents for the purposes of I gathering information upon the objectives of that. A. That is correct, Mr. Chairman. Q. Now, do you know that this plan was put into effect --was, rather, approved for use by the President without WASHINGTON POST 29 JUN 1973 Slitideitiy, the. Su By Ken Ringle ? w.shingtoa Nat Staff Writer For more than a decade, the George 'Washington Memorial Parkway exit south of Turkey Run has been variously tabled "Bureau of Public Roads," "Federal Highway Adminis- tration," or "Fairbanks ; Highway Research Station:N This week parkway work- men finally put up signs showing where. it really leads?to the mam mol ; headquarters of the Central ? Intelligence AgFney in Langley, V. ? Parkway superintendent . . er-Secret CIA Goes Pu David A. Ritehie?said the 're quest for the new sigi "came down some months ' back from CIA." A spokes man at CIA said the ig,n was ordered by James Rs Schlesinger when he took over CIA for four months early this year. , "He came in here and said ?..'Where's the sign?' and there wasn't one so we gOt one." the spokesman said. He said the sign was part of 'a general policy of increased openness that Schlesinger or- dered at the nation's spy agency, where switchboard operators now answer calls ? . with "CIA" instead of just repeating the phone num- ber. Parkway superintendent , Richey said the lack of a ./ sign at CIA was "sort of a joke going ? back over the years. People know very well the highway station is not the principal agency down that road." For years, roadmaps have identified the location'of the CIA. Ritchey said he never knew of anyone getting lost trying to find ,CI., and that . a greater problem was keep- ing sightseers and tourists out. 71? The CIA spokesman said people in quest of. the agency get lost all the time. "We get cab drivers who never find us," he said. "They wind up circling around and around like some sort of Flying Dutch- man on the Beltway." Did Schlesinger ever get lost trying to find CIA? "I don't think so," said the agency spokesman. "That's a piquant thought. but I don't think that guy gets lost do- ing anything." After four months as head of CIA. Schlesinger moved UI) last May to Seeretary of Defense. --,:-GIA-RDP77---00432-R0001-00-190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 LOS AIWELES -TIMES .25 JUN 1573 ^ aTeirga e :4,0 i? ? CiSp May 3elift1 Lid '31402J D?mcSpyfr ?,. BY rtUDY ABRAMSON Times Star! WASHINATON ? A competent chicken thief would not have made the Mistake. Retaping the lock on a door after a night watchman had discovered and untaped 11.?that he longed in ati Abbott and Costello movie. ? Indeed, some said the Watergate' burglary must have been a counter- Inte'lligence 'plot by the Democrats designed to end in. arrests and em- :barrassment for the Republicans. But the truth was that well-bank- rolled operatives with a generation of experience in intelligence had nIde a blunder that would expot:e not only an elaborate 'scheme of campaign espionage but ad ? hoc domestic spying as well. As the layers have been peeled off the Watergate coven! j) over recent' . months, there have been other spying cliares that would have caused top-drawer scandals in .their own right in times past. ? Testimony from principals, leaks from investigating committees and newspaper reports show domestic snooping has eone on uninterrupted at least since 1967, when the Lyndon B. Johnson -Administration put the Army to work conducting surveil- lance of U.S. civilians. . The scattered stones turned. over? by the Watergate imbroglio have re- vealed enough io cause- some aca.- demics .to call for renovation of the; country's legitimate intel- ligence institutions and to . move civil libertarians to renewed opposition to alt. domestic intelligencei functions. ? t ? A special Senate corn-, mittee, seeking to estab-. lish responsibility f o Watergate and the cover- up, has not yet dealt with these questions: ?Was the 1970 intel- ,ligence plan that was ap- proved by, President. Nix- on, then disapproved five days later, . actually put .into effect as designed? The scheme ? acknowl- edged to be politically ex- plosive and partly illegal 'by one of its chief or- ' chitects?called for break- ing and entering to get in- gence in monitoring- overseas tele- phone calls by U.S. citi- ! zens and stepped-up inter- ! cent Inn 'of mail ? addrcssed 1 to il, ome.itic intelligence tareette ? , The plan %vas withdrawn bcau!.c of objections hy ins againzt Chilean ? WrIlef i;far itonver, who op- parentiv was concerned that a %.Vhite How-Is-direct- ed intelligence operation would undermine his au- to:welly at the FBI. ?Was the plan devised as a way of continuing the Army's surveillance pro- gram, ?which had been forced-to an end by public disclosure and congres- sional pressure? ?Did the "plumbers," the White House group or- ganized to slop "leaks" of sensitive information tr! the news media. fit. into the overall plan? . ? Reports that have come to light in the course of t h c Watergate inquiry raise the possibility that much of the 1970 domestie? spying plan may have gone ahead: ?Defense attorneys and one defendant in the Seat - tie 7 ease reported break- ? which, they said, documents and egal pa- pers were taken before, during and after..the , (en-dun% 1970?,..trial.,. The defendants were 'accused i of conspiracy to destroy !federal property and of ri- oting in an anikvar protest. ?An attorney for the Vietnam Veterans Against the War has given an affi- davit saying that her pa- pers were searched and . tint documents relating to oi7c of her clients were sto- len in a 1972 burglary. ublished reports , quoted assertions that Ad- minktration intelligence operatives had planned a break-in at, the Breokings Institution, a Washington "think tank" where Mor- ton H. Halperin, a former National SecuritY Council Employe, worked. lialper- in, it has been disclosed, was one of the persons whose telephone had been tapped during investiga- tions of the Pentagon Pa- pers case. ?Dan Rather, CPS ,White "House reporter, re- ported his home was bur- - glarized ancl his files rifled in 'April, InTel, when he was etworing President Nixon in Florida. ?At least three break- offi. s in the 1. niterl States in. 1971 and 1972 hive been .reporte.d:, in none of the .Cases were valuahles taken, but pdpers were ap- parently rifled. , ?.Robert Strauss, chair- . man of I cic Demecratie Committee, his home in Ilnuston broltim into clecie:; the Demeuratic national coo- ?ventlon last year. Extxn sive jewelry and furs were ileft behind, he said, bu. .his files were disturbed At the time of the burgla ry, Strauss was treasure 'of the. committee. --There nave been re ports that E. Ilcmvar. Hunt Jr., a member of ttl , 'plumbers" and one of th convicted Watergate cot- spirators, slid he was tiered to Milwaukee 1) :search the apartment Arthur Brenmer?in lb hope of finding left-win; materials there ? shorn', after Bremner shot Al;-? bama Gov. C-;orge C, \Val , ? lace. Accordilg to the re ports, Hunt did not rinks the trip. ?A plan Was said to have been nude to burgla- rize the :1par:inept of Las Vegas newspiper Editor Hank Green!pun repor- tedly in the hope of ob- taining matercils &wag- ing to Sen. Ldnund S. Muskie, at the time a con- tender for the Democratic Presidential nomhation. There is little evidence that' other aspect) of the plan might have hien car- ried out, althoug-t Tom Charles Huston, th! White Ilott;::a security aide who helped foribulate i'., com- mented in secret mthlos that CIA Director Richard Helms was enthus.astie about R. He mentoned also that the heads d the National Security Alency and the Defense ligence Agency wen !inset by 1100VP7'44 oppoSitiCAL t, Solute . ! ..,.W 4 let1gHt Snvc3tigT,tiort _It set f, Oro .other congres't: 'Oc#11:11 VOiriftte.4;;:. rith "!.t.e.$now.41bilty. tor inanitot; lrig the Alii*e ,Conlact4; f',...4t1 hearingk:/2.4:e;.-;:..;::'',,*;CV, ;So 't'zitt oily' two tOrnilit, ;ston:t. ,:}ii.htitii.'?'',ebfliei.'34.911;0 ??:',thictii.ci4,,:ki-.,: oinling,:.(a eS.4.'? t) n e'r;s4 0,1'mi .CI,v from 0 0 v, e.1.!Onntitt, :i,z.iit),thttif ottridit % ti.., 4a it1,1,;.i.10 A ll' ? ' 'tt 1 0 ' '-f .1."'''''1.';'' 4, i I .. , a . t 1,4,., )e.,, of li;e5:ident tat p Ma .Johh 1N1 Liirlichnuitt'. WI, 1:notOng)?` helped Jtunt '.prepare':11e..; the burglary-, of thinflill'`?Ali4lierg's :psy;?,.. h 1.a t i',I.i.',,s ; offitte.f but; backed out. 'wht,o 4.itr:.0A4lo '.....!)6,-"illi:1116::"eP'A:ti.arelltil5tiS:eCl.7t'.6:.c3 eoon,erate:.;.it. ,stopplug an .P.111.'itiv'eqatiort of f esiMt. j-stil!..:Ut.. ftind.i.6ent : throughi; :Is *,.tleXlett Cir bank, before!?, being thanrtled hack into ?the United Sites,. :..-,;:..? -.1,::; ' -4,Ndne Of he.: InVesitgli4, 'lions to (or bye gone into'; :the tittiationit the White trouse. itliert ,legitimate ? national., ticeuity rititters;, huej illegal kimophig mitt:: hav4 bccornebltangied.... ' i'Tor instance,, the ''pliirr hers" r,rotip .;.:,-- I tiint, C. .6ordom Liddy, Egli Nrogh; .1r. and .1.3i7fd Young. A" Nationit 1 '.:ACIII'ity Council (daft MeMber?W5iS'.orga4' nized hi 1971 in the .'n*ke.:1, tn? the puhteatiOn of the ? Pentakon Pamrs.., ? : .. ' '`,,, ' Deelitssifiestiost Official .. , 'tine next lining; Young; liecirne the White llotise! Matt ? officer. tinning' a povcrornentmide effort to. tbelassify settet paper&. lt this positico, lie had ttc,.;, tess to tenslive .goverri!.:' tient t,edrets at the same; line be was connected' .Wt4 the 'phinberS," the, .t:rget of poltiCal espion-.., ... . ?me charges, ., ? ' : '4 Nrogh, the head i'pluin?;: be'," who mortd oil to be., Cone ;undersecretary ..of.. trin;pOrtatiOn, htis since. i'eipried :from the govern- mint, tetceptin.; repoifi.l.'i billy for the 1,',Psberg pg.3.,,:, chhttist burr,,ta.-y. ? ,,. ung quintli left, the'.,./. gOTrnment.the same ciat ;the Preicient: cdmounceck, .,the reiiignations of pres73 idettlit advisers' . 11: ? 11,./z j11allenian aria 1,Thrlich;:, 1,marand the tiring of pres-:.:.; ldettial :counsel John Wil,. 1' calif'', And Liddy and were conyteted of I st.,! V.Itorsositl liefiolmil '' Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 ? 'Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 WASHINGTON POST 3 Q JUN 1973 .Colson To -Leak Secret Cab rity" grounds, Paul ? 11,-. in approval at the re-elee- ! Weiss, attorney for the Dem- tion committee. ? Colson said he cut Liddy ? off, saying, "This was not I my area of responsibility" sand called deputy campaign ? chief. Jeb Stuart. Magruder. He said he told Magruder, "I don't even know what' their plan is" and that "1 haven't even listened to . them." , He said he told Magruder, By John Hanrahan ? ? Washinaton Post Staff Writer. _Former White House aide Charles W. Colson balked at answering some questions on the grounds of "national security" but then acknowl- edged that he had ordered E. Howard Hunt Jr. to per- mit a news reporter to read a. number of classified State Department cables, accord- ing to Colson's sworn depos- , ition,made public yesterday. ? Colson, as he has done previously, denied that he had ever given Hunt any in- structions to fabricate a ca-? ble linking the late Presi- dent John F. Kennedy to the assassination of South Viet- namese President Ngo Dinh Diem in 1963. Hunt, who pleaded' guilty in -January to charges rela- ted to the, Watergate break- An and bugging, previously gave -a sworn .statement in ? May to be Daniel Ellsberg ! trial in which' he said he had shOwri the phony cable to Colson and; that- Colson had ' liked it. ? But Colson, in is sworn , ' deposition given May 28. ? said he was "not sure that I ever saw the text of that ca- . hie:" ? Colson said that Hunt, in late 1971, had been working with Time-Life reporter Wil- liam Lambert "who was in- terested in writing a story about the entire history of the Diem coup." . . . I learned at some point during the time that. Mr. Hunt was working with the reporter that there was one purported cable which was not authentic,. at which point I attempted to discour- age both Mr. Hunt and the ? reporter involved from pur- suing the story any further." ; Colson's deposition was . given in connection with civil suits that arose after ,the Watergate arrests of last June. Early in the deposition, Colson declined to answer : questions regarding the bur- glary of the office of Ells- ' berg's psychiatrist, which in- volved -Hunt and fellow Watergate conspirator G. Gordon Liddy: Colson's law- yer, David Shapiro, said his client could not answer tin- ' HI the "national security" aspects of the'break-in were ' 1 clarified. Picking up on Colson's re- . . luctance to answer some questions on "national secu- ' ocratic National Committee, ? pressed Colson as to why he then was showing classified' documents to Lambert. Colson acknowledged that . Lambert did not have a se- curity clearance needed to see classified material. He said he had ,told Hunt. "that he could ? not give him (Lambert) anything ? but let him read through the docu, ? der, "I don't know whether ments." what they have got is any "Regardless of whether good or not . . . but for they were classified or not God's sake?listen , to them classified?" Weiss asked. ? or give them a hearing -or, "Did you put any specifica- let them tell you what theY' tion on that?" are doing:"--- ? Colson replied: "Noi" ? Colson said Magritder Weiss asked Colson 'about responded: "Yes, I know reports that Hunt had about it and I'm arranging. showed Colson the fabri- that." - cated cable at one point and In testimony-to the Water- That Colson had allegedly gate Senate select commit; ,said "that isn't good- tee On thoi Watergate this enough" or "can it ,be month, Magruder said Col- better?" Colson said this son-- had prodded hint -to had not happened. approve ? the "Liddy plan" "My recollection," Colson but that Colson had Made said, "is that Mr. Hunt no mention of what the plan showed mesa series of cables involved. Magruder has ac- and told me . . . that Mr. , knowledged sitting in on ? Lambert did not believe sessions where the bugging ? that these were adequate for was discussed, and periur. his own purposes, that this ing himself afterward as didn't tell enough of the Story. recall telling Mr. IV Of the Watergate cover-- Hunt. to go back and keep Colson, until March, was digging or keep working on special counsel to the Presi- it and sec what else he. dent. His name has ariscn could find and see what else he could come up with, to frequently -in the Watergate ? ? case and he has ' emerged see if he could come uP with in recent weeks Its the chief something better," , public defender of President Once he became ' aware that one of the cables was : (Mr. Position that he phony, Colson said, he did Nixon) knew nothing not- discuss the matter with eith" of Pia" to hug the Water-ate or of the cover- Hunt but rather endeavored ? - !to steer Mr. Lambert away uP. from the story altoeether. ?v.$ ' But Colson, in the deposi- ? tion, again denied?as he Colson had Previously has done on numerous oc- : given a deposition in con- casions?that he knew any- nection with the civil suits ? thing about the bugging last Aug. 30. In the first de- !Plans or was involved in . the subsequent cover-up. . position, Colson was asked , w o other depositions to describe any meetings he arising from the civil suits may have had with Hunt be- i/also were rmade public yes- fore the June 17, 1972 i let-day. These came from Watergate arrests. He did Judith Hoback, former sec- retary at the Finance Corn-- not at that time,. mention a mittee to lie-elect the Presi meeting he had with 1-hint -- and John D. Loftonand Liddy, which he de- , Jr., editor of .the "Monday" scribed in his deposition made public yesterday. ? publication for the Itepub- ' Colson said the brief meeting occurred in his of-, fice in late January or early February of 1972, He said Hunt said Liddy, the attor- ney for the Nixon campaign committee, "had developed a plan for security and intel- ligence" for which they were .having difficulty gain- lican National. Committee. : In his June 19 .deposition, Lofton said he had acci- dentally seen the ." stone" file which contained 4 wiretapped information ob- tained from the first break- in and bugging of the Demo-': crate National Committee headquarters in the Water- gate in May, 1972. , Lofton said he had seen , the file, probably in early June, 1972, in Magruder's office, but that he did not know what it was at the: time. ' Magruder, Lofton said i, stated he "had some inter- , esting information about Larry O'Brien," then the Democratic national chair- man.- ? Lofton said Magruder then s gave him some of the- infer- , mation orally, but "what the information was, I don't ex- actly remember." Two days after the Water- gate arrests, Lofton said he ? called Magruder and said to jam "Well, there gees Gem- stone" or "There goes your Gemstone." Magruder then , warned him never to "use that wind again." ? In .Tanuary of this year, Lofton said Magruder brought up the subject again and told, Lofton: "You did not see anything." Lefton -said he- angrily told Marilyn- der that he certainly had seen it and that Magruder then told him that the file had to do with legal intelli- gence-eathering operat ions and was not involved in h'hisWatergate. .SPring," 'Lofton- said,' Mkruder again warned him he should. not talk ? about, "Cfrmstone." Lofton said be: pressed 'Magruder' for fur. tl+r explanation, but that MOgilider again told him It.; pertained to legal activities. ' ; Mrs. Hoback, in her de-, pesition, said she knew float- ? ing ;about any illegal activi..- ? liesroceluTing fit the Nixon' - finance committee. - She did tell of a staff meet- int shortly after the five ., q11011 who broke into the.; Watergate had been retted. Addy, Who was not among) tht original five arrested,1 got up at the meeting and gave a pep talk, calling 111-04 break-in deplorable int-id- ? cut" anti placing the blame-- fully on .James W. McCord Jr, the . re-election cont-':. mittee's security chief who ? had been. arreSted, 41, the Watergate, r4, Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 WASHINGTON POST 8 July 1973 , ? By John Hanrahan 0.? 'Washington Post Raft Writes Watergate conspirator E. 1-Ioward Hunt Jr., in a book :being prepared for publica- Atom later this year, says . :that he proposed in 1960. :that the CIA assassinate Cu- ban Premier Fidel Castro as :part of a plan to put anti- 'Castro exiles in control of the Cuban government. ' 'Hunt, a former CIA agent, ? isays that the ,recommenda; .tion went to his superiors,' Richard Bissell, chief of the ? -CIA's Clandestine Services, :and Bissell's first assistant, ? Tracy Barnes, and was ap- parently rejected. ','As the mon; hs wore on," Hunt writes, "I was to ask Barnes repeatedly about ac- tion on my principal recom- imendation Only to be told it was 'in the hands of a spe- cial group.' So far as I have In the hook, Hunt says been able to determine no : that: coherent plan was ever de- ' 0 He hi I worked for veloped within CIA to assas- ? Barnes as e'nef of political sinate Castro, though it was action in in 1955 CIA, proj- the heart's desire of many , eet that overthrew Col. .1a- exile groups." cobo Arben ? in ?Guateinala. A copy of galley proofs of The "Cubae project," for . Hunt's book was obtained by ? which Hunt also served as 'The Washington Post. The . political ettion chief, was book deals with the CIA modeled after the successful planning with Cuban exiles . effort in Guatemala, ? Hunt .for an invasion of Cuba?' says. . planning which resulted in ? 0 He am Barnes met with 'the April, 1961, Bay of Pigs then White House aide Ar- :Amphibious landing in t,hur Schlesinger Jr., and ewhich Castro's troops routed. ' then U.N. imbassador Adlai the invaders. E. Steven: on in the White In his book, Hunt lauds House in early 1961. Hunt the CIA and Cuban exiles' says the Cuban operation ? role in the affair, but an- was disci ssed with Schle- grily blames then President singer at ..hat time. He says -John F. Kennedy and the Stovensee entered while Joint Chiefs of Staff for fail- they we 'e meeting and ing to provide the necessary I asked B: roes: "Everything .air support which , he be- going we 1, Tracy?" This in- heves could have brought dicated I Hunt that Steven- Victory to the invaders, son was tware of the .Cuban *4' Hunt, who has written sev7 plans in advance, Hunt says. eral spy thrillers under ? Be;' card Barker and pseudonyms, fills this latest Frank eeurgis, later charged tale with incidents and anee- as co-co ispirators with Hunt dotes that seem aldn to the anti fe ir others in the , Watergate affair: a briefcase I/Vetere:Ate affair, played / -filled with $115,000 in cash; roles ir anti-Castro activity bungle?a CIA agent loses before he Bay of Pigs oper- a briefcase crammed with ation. Classified documents and ? R'e .1-lard M. Nixon, in cables; "safe houses;" clao- 1960 ae vice president,' was destine meetings; false "'-the CI ban invasion prdject's names. actio e officer within the Although Hunt says at one While' Hotise and that, ac- point in the book, "I have cording to Nixon's military no politics," his writing pro- aide, Brig.. Gen. Robert VideS an insight Into his Cushman, ,"Nixon wanted ,strong antiemmturfistri and 1.1011ititg to go weongi" ? Sf E. HOW 5R,I) HUNT ... ultimate spy thriller his distrust ?tod Suspicion of U.S. and Cliban liberals, as ,well as his :ear that some of his fellow 'AA agents were "soft on contrnunism." ? Nixon was defeated by Kennedy in the 1960 presi- dential race, ?a fact Hunt la7 meats, saying: 1'Unfortunate- ? ly, when I was later to'need (him) ,. . . Nixon . . . had been supplanted by a new administration.' Hunt, in his accounte Por- trays Barker as a loyal side- kick, calling him "eager, efficient and completely ,dedicated ... and overall his help was ihvaluable." Hunt identifies Barker only as 'Bernie", in the text, but identifies him by his true panic in a footnote. Prior to working on, the Cuban project, Hunt said, Barker had infiltrated the / Havana police for the CIA and later helped many refu- gees escape from Castro's .Cuba. Sturgis, identified by his alias "Frank Fiorini," served as copilot, on a plane that dropped anti-Ca ern leaflets , on Havana ie late 1959, ? Hunt says. Hunt, 1)1)11 ,1S bickering among varietis political 'fac- tions among the refugees ' and ,?encern among some of , the Cuban exile S that they were being ."used" by the U.S. The operation, Hunt says, was planned entirely by the CIA and the Joint. Chiefs 'of ? Staff. 'Training was assisted by the Green Berets. As Hunt, says: "To /paraphrase . a homily: this was too important; to be , left to Cuban generals." Hunt tells of receiving a \ brief case containing $115,- , 000 in case from the same finance officer with whom I had worked during the Gua- temalan' ? 'operation" and passing it n to a treasurer for theTkile group. Fearful that "the ' next time , 1 could be hijack-. ed with. little trciuble," Hunt arranged to have all fu- ture payments "arranged through a series of foreign banks," ?. ? . Hunt's fellow CIA agent, identified only as Sam, wasn't as lucky in avoiding disaster, Hunt says. In a pas- sage that sounds like it could come from one or . Hunt's fietioo spy thrillers, Hunt tells of meeting with a , CIA security officer who. "uneasily. told ? iipinfew me that 4 0401 had tgal; it3 filled with classified docti- ?? m'entS had cables ..." . . "In addition to :the possi- ble compromise of CIA ;f codes, t the 'security officer"; tal!i, other missing papers!. ?eave the identities of agents,' in Cuba and the names .oel CIA personnel around the*. ? hemisphere," Hunt writes. ? The matter was resolved,' Hunt writes, "by firing Sam and making a general as- sumption after the lapse of a month? that ? sneak : thieves, rather than Castro ' agents, had stolen the brief- ease and destroyed its con- tents when nothing.of value ,vas found." A few days later, Hunt says, Sam' called , and bd -rated Hunt "for not having ' ? stood up for him." Hunt, in' ; turn, berated him. When, Sam complains that the CIA,: "treated me pretty. rough,"; , Hunt responds, in ,his best.. James Bond-ien 'style.' "Not l, as -rough as Castro treat8.., our, boys when he :.eatch,es', them." Throughout ;? his dealings with the Cuban exiles, Hunt' ? says he' tried to play it straight with them. The only time he lied to' them, he says.. were ? "on direct .or7 ? tiers." Even then, he says, "... each time I've lied I've felt shabby about 't." ' ? .? Hunt says in the foreword. that his book was written in 1967 and was intended "as a . private legacy to my children: perhaps eventually to be lodged in a university. 'library." ? However, ''Hutit says, the , Watergate affair changed all that and he has decided to go public with the work. He states: . "In 1972 ... my name was blazoned across the country, in connection with the Watergate affair, and gov- ernment sources revealed to the press the fact that I had been a CIA official. Moreo- ver, these same sources pro- vided the ',press with dis- torted accounts of my in- ... volvement in the Bay of : Pigs operation, 'This unilateral action by. ; the government relieved me ; of the obligation to maintain further secrecy cOncerning:? CIA connection and the true role that I and others played III Approved For Release W01/013/0'7 CIA=RDP77:00432ROOft1-0019000-1---6- . Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 NEW YORK TIMES 9 July 1973 Cuban.ReiJoifedly Links Fuii6.: to Mint to .? Special tO The New York Times MIAMI, July. 8?The Cuban exile leader Of the abortive 1961 Bay of Pigs invasion .has reportedly delivered $21,000 id "support" money for the con* vicied Watergate burglars whn :were from Miami. - Manuel F. Artime, the Cuban leader, has reportedly told the Dade County State Attorney, RiOard E. Gerstein, that the money had come in. Cash either directly or indirectly froin E. Howard Hunt Jr., another con- , vieted Watergate. conspirator, Sources close to the investi- gation told The New York Times that Mr. Artime had tes, tified that the money was paSsed on to Bernard L. Barker, Frank Sturgis, Eugenio R. Mar- tinez and 'Virgilio Gonzalez?,- all, 'convicted Watergate bur- glats from ?Miami?and their families. ? ? ' ? ( ? ? In sworn testimony Thurs. day before Mr. Gerstein's in- vestigator, Mr. Artime report- edly said that he had ? had, frequent contacts With the five% figures. He ;said thel latest tobk place a week ago, when he visited them at the Federal Prison at 15anbury; Conn. Key Biscayne Meeting ' , Mr. Gerstein, whose year- long investigation of the Miami ? aspects of the Watergate affair first uncovered' financial links between the break-in and the ? Committee for the Re-election. of the President, is seeking evi- dence that the entry was plan- ned and approved at a Key Biscayne meeting on March 30, 1972. The brcak-jn occurred June 17, 1972. . Details of the meeting, al- legedly attended by former At- torney General John N. Mitchell, were described last . month before the Senate \Nr.7 : tergate COrniffittee ' by ,Jeb .7J-Stuert Magruder, former depu ty director of the Commute : for the Re-election of the Pres Went. Some legal experts here hay Indicated a belief that person involved in the Key Biscayne I ' meeting, and others who from , Washington allegedly ordered the wiretapping o 'Senate George McGovern's Miami contacts with Hunt, who is the e godfather of one of his children. Barker, in his testimony be- ;fore the Senate Watergate Corn- e mittee last month, said that s .when he was recruited by Hunt in April, 1971, he and Huntsaw in Miami "two or three persons who are. in the old Cuban Rev- r; olutionary Council." ' Sources OoSe to Mr.' Ger- ,- stein's investigation said that Mr. Artime had denied any prior knowledge of the aWter- , gate break-in. 'He reportedly said, however, that he met Hont later in 1971 and that Hunt, who said ? he was working for the White House, tried to re, cruit him and other Cubans for an operation in Panama: re- lated to drug traffic. r ' Also Met Liddy Beach election headquarters, could be indicated under Flor- ida law. , Mr. Artime and other t u1 ad organized the Miami Watergate Defense Relief Fund last' February. At that time, the fund, ln corporated as a Florida "chari- table organization," opened an account with the, Bank of Miami and began soliciting funds for the relief of Barker, Sturgis, Martinez and Gonzalez. The fund's account is said to. be exhausted at present. '? But sources' close to the case said that bank records showed that between February and, I May, more than. $5,800 was? deposited to the account, of, which almost $3,600 was hi' cash. During that period Bar-4 ker received $660 and the other, three Cuban conspirators $425 each. ,A /total of $3,797.50 was, paid to the Washington firm that represents the four.: Mr. Artime; owner of a?meatt importing company here, was? selected early in. 1961 repor-1, tedly by Hunt, to lead the Bay' of Pigs invasion force. , , At that time Hunt was the 'top Central Intelligence Agency operative supervising 'the, in vasion's planning 'and execu- tion. Working ? for Hunt as paymaster 'for the United' States-supported, ? Miami-based Cuban Revolutionary Council *as Bernard L. Barker.. The' ? council's Military arm was the invasion force. ? . Mr. Artime was among the exiles captured and jailed.',' After hit releasefrom ' ' Cuban jail in December, 1962 Mr. Artime is said to 'have had ;natty personal and professional Mr. Artime, who appeared voluntarily and who was not accompanied by a lawyer, said that during one of his, contacts with Hunt in , Miami he also met G. Gordon Liddy, another ? convicted Watergate conspir- ' at?re According to ? sources close to the case, Mr. Artime. testi- fied that he had first learned about the Watergate break-in from newspaper accounts. , . A few months later, he re- portedly said, he and a "group of friends" came up with a ? plan to set up the relief fund, but in the testiniony did not elaborate on the inception. He is said to have consulted Hunt abut the plan during a trip to Washington, and Hunt is ? said to have called it a "very ,good idea.' Shorty afterward, the sources. '-quoted Mr. -Artime as saying, ,Hunt's wife, Dorothy, came 'alone to Miami' and told him .that money would be provided to, the ? fund. She is said to have assured Mr. Artime that the four Miamians would have' no legal problems in Washing- , tori. But she reportedly said that Barker might have some. itrOuble in Miami , beeause of a charge Of having falsely nO-7 tarized a signature' to cash a-. $25,000 check that went' through the Corhmittee for the, Re-election of the President,: Gerstein for Prosecutor 4 ? Prosecuted by Mr. GerStein4 Barker was found guilty in the, charge last November. ? FolloWing Mrs. Huht's death in an airplane Crash in Decern-,'? ber, 1972, Mr. ? Artime visited Hunt again in. Washington. At that time, the sources said Mi. Aram said, ?Hunt gave him le Manila envelope with si2,00p in cash. ? .? , Earlier this year, during an- other visit to Washington, Mr: Artime reportedly was' told. by Hunt that an American would telephone him soon in Miami; identify. himself with a code name, .anci_arrange for' ? a new delivery of "support" money. ? The man never called, accord- ing to the. sources, but a few weeks later, he found in hit mail box three envelopes con- taining .$3,000 each in cash. . ? Mr. Artime was quoted ai Saying' that most of the $21,000 was distributed among the four Miamians, althoogh Martinez got less than,. the others be cause he is not married and has no close family. The. sources said that in his testimony Mr. Artime volun. terred his own observations t'gbout the Watergate [ break-in., Although he characterized' Hunt as a good political oper.i ?ator.' he is said to have dd.: .scribed both Hunt and Barker as "very bad agents," and 'Added that he Would recom- mend only Martinez for such kali operation. t' Mr. Artime also Was quoted ' as saying that in one message 'from prison Hunt asked himi for advice On hew to invest' his money. Mr.' Artime report.' edly declined and suggested that Hunt employ a proles-, Oional Consulting agency, Appr-eved-For-Releass-2091/.08/07 ? GIA-RDP77-00432R000100190091 7p _ Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 WASHINGTON POST 10 July 1973 ' A' Sense f eja Vu at Watergate Disclos i'es Raise "We were not involved because it seemed' to me that was a clear /notation of what our, charter was." ' Malty( AL fleftns,teb. "Dick helms Mas "most cooperative and; helpful." ? Tom ?Charlos Huston. JOi.lirth 's:, By Laurence Stern , Woohlogton Post 8toff Writer In the vernacular of Courtroom me10-',1 drama, , someone was dissembling.. It was either Richard M. Helms, the re-, spected formed director of the Central In-,. telligence Agency, or was it Tom Charles.; ,Huston, the White House architect of the'' controversial 1970 domestic intelligence ? The conflict was 'rooted in an appear- 'once by Helms before a closed session of ?? ' the Senate Foreign Relations Committee last February 7. Helms was being questioned by Sen. Clifford P. Case (R-N.J.), It had. come to,! his attention, said Case, that in 1969 or 1970 the White House asked that all the J national intelligence agencies pool resources;':, ,to learn all they could about the Anti-wan .movement. ? ? "Do you know anything," he asked Helms,: '"about any activity on the part of the CIA,' 'in ? that connection? WAS it. asked to be.- !Mvolved?" ? 'Replied Helms: "I don't recall' whether we were asked but we were not involved' because it seemed to: me that was, a cleat violation ef what our charter was." "What would you do in a case like that?,-. 'Suppose you were?" Case persisted.' "I would simply go to explain to the' -President this didn't seem to be, advisable.*.T said Helms. "That would end RV" ? "Well I think so, normally," Helms, eon: eluded. . ? ? Case's prescient question was posed near-' ly four months before the public leak, QC .T-Iuston's memoranda describing for the first. time the intensive domestic surveillance. program approved and then, allegedly, rescinded by Presi- dent Nixon five days later. The Huston papers impli- cated Helms and his agency in the 1970 intelligence plan so directly that the word perjury was being uttered in Senate offices by those whO . were privy to the secret tes- timony given by Helms in 'February. One of Huston's top secret memoranda, addressed to . ? former presidential chief of staff H. R. (Bob) Haldeman, reported: "I went into this exercise fearful that CIA would refuse to cooperate. In fact, Dick Helms was most helpful ..." * Huston also reported that', top CIA officials 'joined in Meetings with other intelli- gence agencies to draft the 1970 intelligence report. By the time the Huston. documents surfaced and the .contradiction became appar- ent, Helms had returned to his 'ambassadorial post in Iran. He was never publiely On tlitentitOot itestions . between his own testimony that "we were not involved" .and Huston's .assertion that' :Tick Helms was' most coop.- erative and helpful." ? t? Yet here was compelling 'new evidence that the CIA had been involved in domes- tic security matters which, by Helms' own admission, Violated the agency's con- gressional charter. The 1947, National Se.ctirity Act estab- lishing the CIA decreed that it "shall have. no police, sub- .poena, law enforcement 'powers, or internal security functions." ? Incidents such as these breed a sense of frustration, . if not political impotence,1 among those on Capitol Hill . who have sought to place in .the hands of Congress the 'countervailing power .of , oversight on CIA opera- tions. "The Old Boy business is , so depressing," complained 'one senior Senate staff spe- cialist in CIA matters. "The Helms performance was a , love-in when they should have been blowing him out of the water." Time and.time again since its inception 26 years ago, 'the CIA has been caught with its cloak and dagger showing in the wrong places at the wrong time. Six years ago. the agency was rocked by its last major, intelligence scandal?the disclosure that it had been secretly funding and infil- trating student associations, universities, labor unions, church groups and diverse other private organizations. Tens, perhaps hundreds of' millions of dollars in public funds were distributed with- ? out public accounting to In- fluence the views and activi- 'ties of supposedly independ- ent organizations in the United States and abroad. The money was circulated through a network of tax-ex- empt foundations operated, in many cases, by an influ- ential elite of bankers, law- , yers 'and industralists who ,provided a massiVe and re- spectable cover. If ever there were - grounds for a wholesale con- gressional review of the , CIA's role in the public and private business of the coun- try, the 1967 episode would 'seem to have' provided the ,occasion. , "I'm not at all happy' about what the CIA has ' been doing," said then Vice President Hubert H. Hum- ,.phrey, "and I'm sure that out of this very singularly disrigrocelile $,uctt.lnH 'will wand a reformation of that i agency." But nothing changed basi- cally. ? ? ? ? . President'Johnson' ap- pointed a study commission, headed by then Under Sec-, retary .of State Nicholas DeB. Katzenbach? which re- ported back speedily that the CIA had been following the orders of the National Secbrity Council in carrAng out the covert financing schenie. The Katzenbach panel called for a modest reform. It proposed a prohibition on CIA funding to educational, philanthropic and cultural organizations such as the ones the agency had been ,secretly funding. But it also suggested a loophole under _which such grants could be made to serve "overriding national security interests." Helms was one of the three panel members. Less than a year after the secret ? funding scandal' broke, a group of Old Boys met in January, 1968 under the auspices of the presti- gious Council on Foreign Relations to take stock of the :.gency's somewhat bat; ter,A1 public position. The el.:2 panel included the late, CIA director Allen Dulles, international financier C. Douglas Dillon and two for- 'mer heads of the agency's Plans (familiarly known as "dirty tricks') Division. While ,the public rhetoric promised reform and tighter safeguards on CIA opera- tions, the focus of the off- the-record discussion at the council's New York offices was altogether different. This was the private diagno- sis presented to the group by Richard M. Bissell Jr., who was the CIA's chief of covert operations during the Bay of Pigs debacle: "On disclosure of private institutional support of late it is very clear that we should have had greater compartmenting of opera- tions. If the agency is to be effective, it will have to make use of private institu- tions on an expanding scale, though these relations which have been 'blown' cannot be resurrected. "We need to operate un- der deeper cover, with in- creased attention to the use of 'cut outs' (agency fronts) ... The CIA interface with various private groups, in- cluding business and stu- dent groups must be reme- died." Bissell's comments were Over ini:ntled foe miblie ittUitillittilittilb nit ii:t of the dIseuesion was found, In an university official's?or lice during a 1968 student* ,raid in Cambridge, Mass, , k The Issue, as privately de,' (fined among these. blue rib- bon members of the intelli- gence community, was not reform. It was how to do it better and how not tn get caught. Now the agency is in hot water again in the after- math of thP Watergate scan- dal, the Ellsberg affair and the CIA's involvement with . ITT in the 1970 Chilean; presidential election: For the first time the' American public learned of CIA "safe houses" for covert, operations within the! 'shadow of the National Ca-. thedral in one of Washing- ton's prime residential dis- tricts. There have been reve- lations of domestic political espionage teams composed. of ex-CIA employes. The agency also seems to be a dispensing center for ' "sterile" phone numbers, Spy cameras, mail drops, wigs and tape recorders?no questions asked?when ap-, preached through proper White House channels. The most serious lesson of the recent disclosures is that the agency and the White House national sedu-, rity managers have not been cured of the penchant for,. entanglement in domestic affairs. , And Congress, in defer; ence to the agency's' mys- tique of national security un- touchability, has been reluc- tant to press hard questions.' One such question might be the role of the CIA's Do- mestic Operations Division,. which was created nearly 10 years ago and which has been publicly mentioned in the press and at least one serious study of the CIA, The Espionage Establish- ment by David Wise and Thomas Ross. There might also be ques- tions about the nature of the super-secret National Se- curity Intelligence Direc- tives (known in intelligence parlance as Enskids) by which the powers of the agency have been gradually expanded far beyond their original charter for foreign' intelligence gathering. During the confirmation hearing last week for Wil- liam E. Colby, the nominee to head the agency, acting Senate Armed Service Com- mittee chairman Stuart Symington (D-Mo.) asked Colby about the NSC direc- tives. Colby suggested that? the matter was too sensitive for public discussion. ? One of these directives, NSCID 7, empowered the agency to question persons within the 'United ? States and to interviep American trnvolnrs in CAM- 091-114 h; 100 110, 'VOA+ Mid Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R00010019b001-6. Ross wrote. It also estab- lished the basis for the CIA, front groups and fund con-. ' chlits which were "blown" in ? the 1967 disclosures. ' ? The prevailing tone of , Congressional oversight of. the intelligence community was expressed during a 1971; debate by Sen. John C. Stennis (D-Miss.), the senior, congressional overseer of; / CIA activities. "As has been said, spying' I ' is spying," Stennis said. "You have to make up your : mind that you are going to. I have an intelligence ageneY , and prdtect it as such, and shut your eyes some and take what is coming." In recent weeks the agency has been subject to heavier congressional scru? -; tiny than ever in its history, ;as a result of the Watergate ' disclosures. Five commit 'tees, four in the Senate and one in the House, have been, , looking at various aspects of: agency operations as they related to Watergate, ITT, ,Ellsberg and the 1970 intelli-t, I genice plan. But a searching and sys- ?tematie examination of how0 the CIA fiinctions and how, deeply its operations in- trude into the internal af44 fairs of the United States' does not seem likely to emerge from this spate Of' overlaping investigations. . For those who have ovex. the years watched the cycle , of exposure, public peni- tence and demands for curb- ing the excesses of the CIA's covert activities there; is a strong sense of deja vu at the moment. The agency, for its patt, is "toughing It; Out" Until the clamor sub"; taides once again. - WASHINGTON POST 7 July 1973 liBond Is Cut 1,.To $50,0 ri On -McCord - ,.. , By Peter Osnos , ii ,Washington Post Staff Writer -U.S. District Judge John J. Sirica yesterday substantially .reduced the bond , for con- victed Watergate conspirator 'James W. McCord and granted McCord permission to travel anywhere in Maryland, Vir- ginia or the District: , Acting on a motion filed by 'McCord's lawyers, Sirica cut tile bond from $100,000, of !which all the money had to be !posted, to $50,000, of which. :only a 10 per cent deposit is /required. As for the travel, iMcCord had previously been ,confined to the Washington imetropolitan?area, / , ram Silica did not at, however? on McCord's motion for a new, Srial on the ground that per., ?jured testimony and the gov. .ernment's withholding of .per- ainent evidence had deprived im of a fair trial last Jam,' ry. , McCord was security, direc- tor of the Committee for the; Re-election of the President; until he was arrested Inside. the Watergate headquarters of the Democratic National Com., . mittee on June 17, 1972. At the January trial, he was con- victed of burglary, wiretap- ping and conspiracy. f, Sirica postponed sentencing of McCord in, March after Mc- Cord said he wished to testify , before the grand jury and the Senate Select Committee on he Watergate about what he' new about the Watergate, afa air.. McCord's testimony in oth those forums has been enerally credited as the first 'to link top level Nixon adinin- 4stration )and campaign corn- tt ittee officials to the Water.: ate bugging and cover-up. 'No date has been set for his entencing. Sirica also yesterday denied he American Civil Libertieg ' nion , permission to file a rief in,suppert of McCord's motion for a new trial. The s,CLU said that all seven men 't onvicted in the case are enti-0 led to, a new trial because of erjure,d ,testimony. ,In 'Janti-0 ry. ? , 1 On another matter, Sirica esterday granted limited lin-- unity from prosecution to cordon ,Strachan, a fainter; !tide to tOrmer' White HOUse thief of, 'staff H. R:' (BO)* paldemaii,, and , ordered Straa than to teatify ,hefore the Sen4 4te Watergate ttonntilttme, 4' , '. ' 8 tr a ch 'Mi., 72971 si -7atitiolletir repared to testify that hra ent Haldeman' advance plans or the Watergate hugging given thThlin by Rh Stuart, agruder,`then deputy .direca ?or of the Nixon. 'campaign, 'committee. Strachan'S immt1/. inty means that his testiinony at the, 'Watergate hearings tannnt be used against him, n any future criminal trial. li Strachan appeared in Court )resterday, but refused to talk ?? with reporters.? He is sched. jaled to testify in the Senate hearings later this *nth or, in early Atigutt. ' ' 'I Meanwhile, Senate commityl' tee sources and source's close'. to former Attorney General P-ohn N. Mitchell denied yes- terday, that any request had een made to, Mitchell to keep his wife from accompa- bying him ' to the hearinga When he testifies next week. . ; A source close to the Mit- the!! family said that there had. been no discussion with the , z.nate ccimmittee about, Mrs. ? , itehell accompanying her ? ?,busband and that as of this -time, Mrs. 'Mitchell had - no , plans to attend. ? a The Arkansas Gazette, pub.' lished in Little Rock near Mrs.' Mitchell's birthplace in Pine tiluff, responded yestetday to lreports that Mrs. \ Mitchell had ,heen asked not to attend with n editorial saying she is "just las entitled to her wifely rights, lis any of the others whose husbands have been called to ;the Senate witness stand.. A "Indeed," the newspaper lidded, "a case could be made 'that Martha is more entitled han the others to her seat be- hind her husband. She is, after .1111, the only one of the wives, 'Who made her husband get out Inf the dirty business in ,which ao many of the highest figures In the administration were in- 'Volved." ? ' ? .? . ? In Bangor, Me., yesterday, Sen. William D. Hathaway CD- Me.) said there has been suffi- cient evidence presented to e,the Senate Watergate commit- to warrant. impeaehment procoenedings ,against President ix ? "Something could turn up ;which would throw all of (Former White House Counsel i;lehb) Dean's testimony out ?,the window," 'Hathaway said, s"but it Is doubtful this could happen." , Hathaway added, however, hat his remarks shouldhot be: 4 interpreted as a stance in fa- ?a/or of impeachment because, /the said, "I am in a position of being one' of the jurors if it lever gets as far as the Sen.. late." Hathaway made his corn-, i'ments in a meeting with .the ' editors of , the Bangor Dailyi !News. 'I 1 iJ '37119-g" 'PLUMBERS' DATA- REPORTEDLY KEPT FROM F.13.1. IN 1972 , By DENNY WALSH - Special to The New York Times WASHINGTON, July 9?For many months, two high Juste Department officials withheld Information from Federal liti7 reau of Investigation agents. that would have led the agents much earliec to the .'-"tite House group set up to se,-, ?tinize Government leaks to newsmen, according to sources close to the F.B.I., Watergate investigation. In early July of last year, less than a month after the Watergate break-in at Demo-0 cratic national headquarters on June 17, the Central Intelli- gence Agency' fuhnished the former acting' director of the F.B.I., L. Patrick Gray 3d, with documentation of the aid pro- vided by the C.I.A. to the cadre of White House operatives 'known as the "plumbers," the source :Said. ? The three Federal prosecu- tors and F.B.I. field agents as- signed to the Watergate case and related ,matters , did, not know that Mr. Gray had. this material until it was discov. ered in his office?safe after he resigned as head of the bureau on April 27. Petersen Got Data . Last October, Henry E. Peter- sen, an Assistant Attorney Gen, era!, obtained this information from the ' C.I.A. and, , at, the same lime, learned that Mr. ?Gray had been in possessioit of the material for more than three months, according to the sources ? ? Mr. Petersen, then ,in charge cel the Watergate investigation 'did not pass on the material to the F.B.I. agents working or; the case, nor did he make it known that Mr. Gray had con- cealed the material, even when President Nixon nominated Mr. 'dray in February, 1973, to. be permanent director of the bu.' .reati. ;? Mr. Gray was not available for comment. .When Mr. Peer- Sen was reached through A pub- Ilic ? information officer at the !Justice Department, he said he .had "no comnient." . . 1 This inkirmation was pieced together by the New ? York Tittles after interviews with a 'number of 'worm familisr 'With din Watnrgni.n lilvflatitta^ ition and all its ramifications and from various public docu- ments relating to the C.I.A.'s ....____Appcoved_For_Release..20.01/08/0i...._CIA_,ROP77,00432 ROM 11.0 190.001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Involvement with the- Water- gate conspirators. The full scope of CIA. sup- port of the "plumbers" was not known to the F.B.I. agents in the case until early in. May When it came to light independ- ently of them, during the late stages of the trial of Dr. Daniel Ellsberg on charges growing out of his ? role id publicizing the Pentagon papers. , The agents are knoWe to be ,angry that Mr.' Gray and Mr.' Petersen did not share the C.I.A.1 material with them, and cow: tend that if they haa had the information, much of what Th now known about the "plum- bers," including their burglary of Dr. Ellsberg's former psy- chiatrist's office, would possibly have emerged sooner. ..,? A? key element in the rancor "Of the agents is that part of the material that Mr. Petersen and Mr. Gray had, they be- lieve, might have led them tq knowledge of the burglary months before it was learned by Federal prosecutors in inter- viewing John W. Deari 3d, form, counsel to the President, in; April. . Included in the material; turned over to Mr. Petersen byl the C.I.A. on Oct. 24 was te 'photograph of G. Gordon Liddy,' convicted Watergate conspira- tor, standing in front of the building in Beverly Hills, Calif., that houses the office of the .psychiatrist, Dr. Lewis J. Field- ing..Sources who have seen the ,picture said that a reserved parking space marked for Dr. Fielding could be seen in the .background. Both Mr. Petersen and Mr. Gray had information ?that E. Howard Hent Jr., one of the' Watergate conspirators who pleaded guilty, had requeated that the C.I.A. have someone; meet him upon his return from! California on the morning of! Aug. 27, 1971, to receive some film from him that he wanted processed and returned. Developments in April and 'May of this year disclosed that Liddy and Hunt, both part of the "plumbers" group at the time, had engineered the bur- glary of De Fielding's office on .Sept. 3, .1971, as part of a 'search for information about Dr, Ellsberg. hunt told the Watergate grand jury here in May that he and Liddy went to California in August, 1971, "to ,make a preliminary vulnerabil- ity and feasibility study" of Dr. Fielding's office. He said that they "passed through" the building in Which Dr. Fielding had.hil office and took some photographs "with la very special camera." ' Mr. Gray had known since July, 1972, and Mr. Petersen sihce October, 1972, that the C.I.A. had in the summer of 4971 provided Hunt with, among other things, a commercial Tessina camera .disguised in a tobacco pouch. : Records of the Beverly Hills iPolice Department show that the burglary was eeporied on Sept, ,4, 1971, that a man ar- rested on Oct 7, 1971, in eon- 18 nectiOn with a thefe froin'a woman's purse confessed to the burglary and that on Nov. 12, 1971, the man renounced the confession. Some Justite Department of- ficials feel it , is 'convenient hindsikht" for agents to say they might have uncovered the participation of Hunt and Liddy in the burglary with the photo- graph and other information held by Mr. Petersen and Mr. Gray. "They [the agents] neVet had a chance," a source close to the F.B.I. investigation said. "How can .you .say they Wouldn't' have gotten' to ;the burglary, when the best leads in the Government's posses- sion were concealed from them?" In testimony before' the Sen- ate Watergate committee' two weeks ago, Mr. Dean ,said that Mr. Petersen once had, 'showed him the C.I.A. material and told him that Mr. Gray had the Same material. , . . ? "The fact that this Material was, in the possession of the Department of Justice meant to to ,me that 'it was inevitable that the burglary of Ellsberg's psychiatrist's office 'would be 'discovered," Mr. Dean said. "I felt that any investigator worth' his salt would certainly be able to look at the pictures in th6' files at the Department of Jus- tice and immediately determine the location and from there discover the fact that there had been a burglary at the office that was in the picure." ,Seek to Prove Identities ? Included in the material given to Mr. Gray last July was a rundown on how the C.I.A. had furnished alias documents ,to Hunt in July, 1971, in the .name of Edward, Joseph War- 'ten, and ih the name of Edward y. Hamilton during the more than 20 years Hunt served as a C.I.A. agent. It was also re- counted in the documents turned over to Mr. Gray how the C.I.A. had furnished Liddy with alias documents in the summer of 1971 in the nettle of George F. Leonard. . 'For six weeks to two months following the June 17 break-in, F.B.I. agents all over the coun- try worked to prove to the sat- isfaction of the prosecutors the true identities of thepersons who had obviously traveled widely under those aliases. This required the laborious compari- son of handwriting samples and fingerprints from hotel and airt linerecords ? and 'the identifica- tion of pictures . of Hunt .and Liddy by hotel and airline 'em- ployes. . During much of this time, Gray had evidence that Would have immediately satisfied. the, 'proseeutors?the. own .record of the help it gave to the "plumbers." Mr. Petersen' learn- ed in October that the acting F.B.I .director had remained silent. while 'supervising agents'' tedious efforts on ,the aliases. ? . When Mr. Petersen received the material from the C.I.A.,, it included transmittals to Mr. Gray dated July 5 and July 7, 1972. ? -However; when the prosecu- NEW YORK TIMES 10 July 1973 7O SPY PLAN'S END - CALLED INFORMAL' ,pt , . ? 1 . , 1 "..) !is. ) ? ? .. ? ,' ,e ,, ? By' MARJORIE HUNTER ' 1 itr . Speciatlo :bre New York Timok,. Ft : WASHINGTON, July 9 '-- A a White Rollie aide who helped ledraft a?master 'plan in 1970 for . Iexpanded domestic intelligence I?gathering indicated teday, that President Nixon never formally 0, . rescinded approval of the ,oper- etion. . . . ', - Torn Charles Huston wait quoted by Representative Lu- cien N. Nedzi of : Michigan, tors were finally allowed to ea view the C.I.A. material :33 days after Mr. Petersen obtained it, ,there'was nothing in the doctt- moans they saw to indicate that Flair: Gray had the same Mate- lief, and M. Petersen did not 'menden that fact to the prose- tutors, even 'though, he had given 'Mr. Dean, the Presiden- tial counsel, that infonnation around, the tarne time, accord 'mg to Mr. bean. ' . The C.I.A. documentation was turned over to' Mr. Petersen in response to a' series of questions submitted to the agency by Earl J. , Silbert, principal Assistant United States Attorney in the Disttict of 'Columbia who was then the chief prosecutor in the Watergate case. Richard Helms; then director of 11,e C.I.A., ar- iranged to turn aver the mate- slat to Rich. e: G. Kleindienst, ,then /Went, ? General., ? In a telephone interview, Mr. Kleindienst said that the mate- rial was delivered to hien in I manila envelope and that he de- livered it to Mr. Petersen with- out opening it. He said. that he never, knew what was in the envelope. .? a Mr. , Kleindienat.'strongly urged the President to 'nominate Mr. Gray to head the F.B.I. on ..a permanent basis. , ? ' The former Attorney General,. Who stepped down :rather than involve himself in a Watergate, 'investigation that led 'repeated- 'ly to his personal, friends and political associates, indicated he was not aware of Mr; Gray's possession a the C.I.A. mater- ial. ! Asked Why Mr. Petersen did net give the 'material to the F.B.I. agents in the case, Mr.' acleidienst said: . ' "Mr. Petersen would have !shown it to anybody, 'Pm sure, ,who he felt. should have seen it in connection with any legit- imate investigation. He wouldn't 'have ehown it to anybody who 'he didn't feel needed to see it. , . "Henry ? didn't ?secrete any- thing' for devious reasons, nor ? did he in any way impede the investigation. I know Henry Well, and I know that his only, interest was to have a fair, in- tensive investigation. He wasn't Involved in a witch* hunt, but he Was interested in anything that bore.ort the investigation. . Mr.' Gray . was apparently given the C.I.A. information an ai 'result of his Oaken- with 'Lieut. Gen. Veliiftli A. Wallet a,' 'deputy director of the iittoilla tone? agency. hairinata, aif 'a- Rage' Maned ;torvices subcommittee, 'as say- ing that the intelligence agen- cies involved were merely notie if1ed by"' telephone to return' 'Memorandums in Which he said,, 'the,that President had ap-, loved the plan. ' , ? .1 "So far as we could learn, 410 one at the White House -gave formal orders to res,cind ithe plan,"Mr. Nedzi saido,. fol- lowing a; two-hour session in ,Which Mr, ? Husten Was que'a' tioned 'abed:: possible invol4;.: ,itient, of the Central Intelli:;: gence Agency in the Watergate' r ? . Affair. , ? ,i. Mr., Huston declined ? to tclis:, cuss his , testimony as he emerged from the closed hear- ing. ,The White House had ntk, ,8omment. P' President Nixon, in a state, 'Meet on May?22, said he ap'-i 'prbved the intelligence gather, ing plan in July, 1970, but that file agencies involved were no2 'Zified five days later that the approval had been rescinded: 'Primarily because of the Oppoa titian of J. Edgar Hoover, then the directot Of the Federal Bu-, .rOau of Investigation.' ? I 1.* The master plan had called Irer illegal breaking and enter.; big, electronic surveillance :and other cevert activities in an,ef-,. ifort to stem the wave of do- inestic disorders . on college, campuses and in urban eras., P1Mr. Huston told the subeern- anittee today that his momo- randum, summarizing the 43- Page report and stating 'that it lied been approved by the Pres- Yident, was sent 'to the F.13.14 ithe C.I.A. and other intelligence, units of the Government on Willy 23, 1970. He said the memorandum had been Lap. proved by }1.1 . R. Haldeman, ithen the President's chief of le5;taffil M. Huston was quoted bY, 'IVIr, Nedzi as saying 'that, five lidays later, lie' was'instructed iby Mr. Haldeman to request "the agencies to.: return their. ieopies of the memorandum. , 'Mr. Nedzi said that Mr. Hus- ;eon, in turn, asked an employe lin, the White House "situation, I:room" (a military informatiok :and communications center) to, *relay this message to the agen,-,, spies. . , -While President Nixon , has 'Maintained that the plan "nev- er, went into effect,' some of' ;those involved an the Water- .;gate investigation have sug- ,sested that key elements of the 'plan may have, been adopted two subsequent break-ins. , The two illegal entries in ;question were the burglary of ithe California office of Dr. tDaniel Ellsberg's psychiatrist tin September, 1971, and the ,break-in at the Democratic Na-, atienal Committee headquarters the Watergate complex in' !June, 1972. ? Mia Nedzi said that Mt', Ilus- giOn told the subcommittee to- day that the. 11970 trinatet ohm, did not call for tiny co.:winded role for the CAA! o "I got 'the iraptottaltm that, ,4-he only reason the plan wag idrawn up %%qv; , Iwcatiqc- the ,atiroit 11011011lig Miliito I )t)wii,.? unhappy doz,107,111 ?hi+ iate'at Approved For Release 2001/08/07 : CIA-RDP77-00432R00010019000176 :Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-8 NEWS Wilmington 13 June 1973 tting in . It is perhaps only fair, as a counter. n to all the bad publicity it is receiving.: through the Watergate investigations, to ,t1 put in a good word for the Central Intel- ligence Agency. applicability of the domino theory to The CIA has been given a bad name Southeast Asia, the pacification pro- by Watergate because some of its for- gram in Vietnam, and predicted that m e r employes, and many of its the South Vietnam invasion of Laos. techniques, were involved in various ii- would meet heavy opposition, a ?mes- iegal activities. But the CIA in fact ? or never got. sage the military either chose to ignore refused to participate in the Watergate cover-up when asked to do so by the The CIA generally gets itself in trou- White House staff. ble when it extends its activities to Not that the CIA did not already' operations, rather than straight intelli- have a bad name in certain quarters gence-gathering (Chile and Cuba are the long before the Watergate caper broke classic examples), and when it goes out open ?. it did. It overplayed its hand in on a limb to get information that is , Chile, financed the ill-advised Cuban in- really not that vital. vasion and made various mistakes in The spy satellites do a good job of Southeast Asia. gathering information about military . But these aberrations are not evid- :activity in the Soviet Union, for exam- ence that the CIA is filled with bum- pie, and ? there is littl juStification for .bling idiots, or that the CIA is un- taking the risks associated with sending necessary. What they do suggest is that agents into that country. The same is the agency has not always been able to' true for Western Europe and Japan and , readjust its thinking and its policies to other friendly areas ?.plenty of infor- the changing realities of the world. illation is available through overt It should be noted immediately that channels. The problem is to understand the United States must have the CIA or and evaluate it, not to get it, and covert a similar agency. It is most important activities are of little value. that the nation's leaders have an honest Therefore, some changes in tactics assessment of what is happening in the are probably in order. At the same world, and what is likely to happen. time, the CIA needs to change its view And it is important that this intelligence of what information is most vital. It is agency be completely independent of probably more important to the United : other agencies, which by definition Will States today to know what the Japanese seek information to strengthen their are up to economically than to know own positions. what a bunch of guerillas are doing in (The CIA with 15,000 employes, is some South .American backwater. Pre- not, by the way, the largest intelligence dieting economic intentions is of just as. much value as predicting military and agency in .the United States. Air Force Intelligence is far larger, with 70,000 . political intentions. Too often,' however, employes; it uses satellites to pinpoint the CIA has followed the Communist-: .enemy Missiles and the like. Army In- watching game that it began after , telligence has 38,500 employes, and the World War II to the exclusion of more eful ? . , National Security Agency, which is tasks. The only question is whether the' CIA the code-breaking business, has 20,000 employes.) , can adapt itself to a new role. It is al- Despite its well-publicized errors in ready changing?there is a sign on the a judgment, the CIA has a fairly good agency's headquarters now ? and its record in making accurate, independent leaders seem willing to adapt even tfur- assessments of political and military her. It would be most unfortunate if situations. The CIA was critical of the the CIA got smeared by Watergate just at a time when it is beginning to make itself more useful than it has been in years, , II W 19 Appriwed For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 By Milton A. Locwenthal One reform proposal which is gain,: ing prominence as an outgrowth of Watergate is the deceptively simple , notion of transforming the F.B.I. into an independent investigatory agency ' divorced from the President and his ! Attorney General.. This is, in .effect, a proposal to remove the F.B.I. from the control of the elected representatives of the people. Such an idea appeals to our concern OA the F.B.I. could be as severely compromised for political purposes, as it apparently was during the Water- gate "cover-up." The proposal is also attractive to our natural longing for a kind of mechanical even-handedness in law enforcement and a way of . assuring that the highest officials of ? our Government. are as subject to legal. sanctions as ordinary citizens. Ironically, this new cult of inde- pendence is most strongly supported by those liberals who for so long in toned against the independence of 1 FA-Ig,ar Hoover's 1.13.I. from the policies of successive national Administrations. Then it was argued that the F.B.I. was still looking for Communists under every bed while showing softness in investigating violations of civil rights --al a time when national conditions and sentiment called for a different kind of emphasis. Those of us who supported this argument recognized that law enforcement is not mechani- cal. It necessarily involves policy deci?? sions, selectivity and value judgmenta NEW YORK TIMES 9 JUL 1973 F. 31 Reform which should, 'within limits, be sub- ject to the control of the democratic process. Oddly, many of my colleagues who urged this position are now?glori- lying the former autonomy of the F.B.I., apparently forgetting the dan- gers of the independence which they had implored against. Could it be that they oppose autonomy only when they disagree with the policies of hide.. pendent officials? Our Federal judges are appointed - for life and are essentially independent of electoral pressures?and we are better off. for it. But there is a major difference between judges and large law-enforcement agencies. We could hardly accent the appointment for life terms of attorneys general, district 'attorneys or police coMmissioners any- more' than we could accept a secre- tary of defense or a chairman of the Joint Chiefs who is divorced from pop- ular control. Autonomous judges act openly as a check on maiority will, but they -do not represent the threat to our' so- ciety that is posed by independent police forces or armies. These vast organizations possess such great po,; tential for massive and secret inva- sions of democratic freedoms that we' cannot risk their independence. We must not let our distress over Water- gate allow us to Ulm to "remcdies'! that will further endanger our demo- . era tic. institutions. ? This is not to say that it is incorrect to stress the need for character and loughmindedness in those who ad- . minister criminal justice agencies. If CHRISTIAN SCIENCE MONITOR 11 July 1973 FE End CA Among the positive fallout from ' Watergate is a determination to , prevent further political abuses of two top security agencies that , should be separate from politics ? the FBI and the CIA. It has turned out to be a fortu- nate coincidence that new direc- tors for both agencies came up for Senate confirmation after Wash- ington and the public had been sensitized by the scandal to the need for maintaining the legal and professional integrity of these or- ganizations. Thus Clarence M. Kelley's Sen- ate confirmation as the new FBI chef was preceded by pointed questioning on the role of the FBI and its director. Would he make a political speech Me the White House? Would he give White . House aides material from FBI files? Would he destroy such ma- terial on request? 20 By answering all such questions In the negative, Mr. Kelley went on record for a nonpolitical FBI, He said he would not give con- fidential, data to anyone at the White House except the President. He had "never bowed to political pressure, and I don't mean to start." He sought professionalism at the FBI "in an atmosphere of justice." , Perhaps some version of pend- ing legislation would be useful in spelling out FBI responsibilities and procedures. But the com- mitment of the director is the key element in establishing the proper lone for the department, and the FBI now seems to be off on the right foot. Similarly, the nominee for CIA, direeter, Wilitani i, ity, hi being carefully questioned in the hindsight provided by Watergate. Before the Senate Armed Services Committee he has gone on record asked to shred evidence, violate the law, or act against his own cbnscience, any self-respecting official ;should be expected to 'refuse or resigm. But in- stitutional autonomy is no a guar- antee of .personal integrity. Indeed, a powerful, independent administrator who lacks integrity may be tthe great- est of dangers. * ' One major problem remains: who investigates the President, his staff and his Cabinet? No doubt: it: is too much to exissa that even men of the , highest character will vign,rously in- vestieate their ? "bosses." , Moreover, we have been reminded by Watergate that in our system of separation of powers it is very difficult For the legislative branch to check on wrong,, doing by executives who ,cannot be forced to appear before Oongress or account to it. One possible solution is the crea- tion of an independent ombudsman', agency whose sole authority would he to investigate Government. officials. Such an agency would have no power over ordinary citizens but: would act as a check on Government: operations through investigations initiated either by citiien complaints or by the agency itself. Because of the 'Milted power of the ombudsman, the risk: of its inde- pendence might be worth taking. Cer- tainly, it would be much preferred .to the dangers inherent in 'canoeing the F.B.I.?with its vast powers,' over Amer- ican ? citizens?from' the sway of the democratic process. _ Milton A. Loowertlitot is 0::sociota pro- fessor of law at John Joy 'College. against the use of' the CIA for domestic intelligence as being 'contrary to its mandate to seek only foreign intelligence-. He has called it a mistake for the CIA to have supplied equipment used in the Ellsb erg psychiatrist break- in. Thus he nailed down assurances that anyone would have thought. went without saying before the, disclosures of the past year. But, like Mr. C,olby's stated opposition to further CIA involvement in secret wars overseas, they are assurances that improve the cli- mate for keeping the CIA to its, intended purposes. Mr. Colby comes out of the' CIA's so-called "department of dirty tricks." He will need to: convince senators that he knows where to draw the line in this ? phase of CIA operations: Meanwhile, the forced Of law ? and iii3P1,40 ko Woe in the way the FBI and CIA are being scrutinized and ? their futures brought into line with the best aspects of their pasts. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6' LONDON OBSERVER 3. July 1973 CHARLES FOLEY, investigating in Athens, Cyprus and Washington, finds evidence _that the CIA engi;. peered the colonels',_coup in Greece, with dictator Pepadopoulos as its front man?and now uses secret -knowledge of his wartime collaboration with the Nazis to keep. Its grip on the regime. IN THE tawdry :pitical 'sYmb?1ises the Illassi" Ameri- can presence in Greece, r?-hicit thriller that is?Gieeee .tOday, op.poncnts of the reginluntly one consistent- motif the call 'an occupation force' progress of George' ? Fape*:-,"" The Pentagon -prizes Greece - an ace in the Super -Power dopouios. He.. has ..taken 'over as game, and Papadoboulos as the the country, the Premiership,--man man to guard it. He has recently , the Regency .and Presid-' opened up .Piraeus, the port of ency. What is the game plan Athens, as the Sixth Pieces now for this man from no., home port, bringing ashore where whose name is a Greek- another- 10,000 -servicemen . -and I equivalent- ,of John 'Smith?.: their dependa-nts. Thirteen other Where is he leading, his hi- installations also come jaciced nation? - ? wrapped?from nuclear missile: bases in Crete to the major corn- A stay in Athens has allowed munications sites of NADGE me to: till in many parts of a.: (NATO Air Defencz Ground. puzzle that has persisted singe Environment)?a ?100 million. the Papadopoulos ,gang seized ' electronic chessboard' against' power in 1967. Sothepfeces *ere the USSR. More than 12,000 found in -Cyprus. ..where -junta: Greek. officers have had training agents showed th:eir hand in .the .in the US, and the America!) attempted assassination of Ara::: and Greek cominands ? are - bishop 3t1akarios,.ohersii si, America, chief source of power -meisted, into -an sold net- America, chief colonels, :7-71%.'hy be; tire..:T&lonelS.'' GreeceThe United States AdminiStra- benme America's forward base has -,ititt 'reaffirmed in the Middle East ?' President tupport for. regiele.7?s. peaks ?Witla' Nixon gave, one-_explanation : "Without aid to Greece we two voices. While Congress is. , would have no viable policy to assured that- Papadoupoulos is. save Israel.' Or, of course, LIS :being peedled daily to restore*at. leait -the fOrms of democracy.- interests_ in the oil-rich Arab -military and --diplomatic aid ha.4.: nations".. ThilS; in defiance ora been unstirted. ? ..1) iliclering in 0:ingress, he has , ,' ordered ceaseless shipments of , ,respectability is bestowed on hea.q.,atLitis and Phantom jets 'to !the .regime by visiting firemen ' ' ?? - from Vice-President Agnew to e.: on ateas, then, the gu'estion: Maurice 'Stens, former Setretar, .is not whether the US Adminis- ' , of Commerce and chief Nixon.: ?aratioe is - Molding up --tb;junta.., ? the- election fund-raiser. The Penta- 'dictatorship i,, it Is a matter - tic gon serves as the Colonels' '' how long. it On do so in the face' ? ' Prudential,' and US the, :of a: new:atid dsing, hatred that" f as their economic lifejacket. rlia:s: inspired :a: ,cries of horith-? Ambassador Henry J. Tasca ' ings egainst US terS and instal) , cheerfully confesses: 'This is ' .lations, .,? ,,, . , : -. , the most anti-Communist group . - Among 'old hands et JUS-" ' you'll find anywhere. There is .., MAAG,, Papadopotilos, 55, _ just no place like Greece to offer. ' jocularly, 'known as ' the first' these facilities with the back-up ;,,CIA,gent to become' Premier ? of-the kind of Government you ?:;of ?a?EiirOpean country.' Mariy- have got here.' 'You,' not 'we,' ?Greeks, consider this to be the: , is the only pretence ; .,... . shrtpie truth. ? ?1 ,..,? ! The quotation conies from a The charge is that not only did diary kept by a visiting Cot. the the CIA engineer the coup that . gressman who was briefed at the '"brought the Colonels to 'power,. , United States Embassy and. :, on 21 April; six years ago it. JUSM A AG '(Joint ? US Military.. :iiiaSi?Still he concerned in stitli;; :Aid ?Assistance Group) ?bead---nitie ?eg last month's Second quarters. He showed me a- ?I'revolutionary 'coup soirlitch re- . sanitised version' of his notes ? placed King COnStentine with on US aims and military activi-, .'Papadopoulos asilead. Of, State. ties in Greece. .At one point a . In the light of 'Watergate :ell two-star general .is recorded as ,things are possible, but there, is saying: 'It's the best damn NalSor some bard evidence. - For Government since Pericles,' -. perspective, 'we must ? glance ,n/SMAAG; with its dile stun i'llaek Oh t39641. wilot (11'000111 of more than 100 top military ,Veteran?.11 era leader. George and civil advisers, its training ..Papandreou, brought his Centre prs-grarrirne for the Greek Army Union Tarty back to power with and its hot line to the Peritnion, ,,5,3 ',peC?.cent of the vete. His . 21 ? - ? 1,? son, Andreas.' all ?Ainerican by virtue of wartime service in the : ? "Navy, ' was teething ceo- nomics ? et, Berkeley. ,California. :He- recovered his Greek nation- ality join the Government', As .Minister of 'State in charge, ibf*.intelligenee, Andreas Papanl , dreon vtrriS Cturiped to find that `the Greek Secret Service, KYP,' 1?....W.,)si, reality a financial ahdr Petnir;strative.:atipendage of the' ? CIA This, he theneht, for man" ob; :theimew, licentre-left.. Coalition that- :?* was trying' to:fOrri) a MOdern,l, and ind--alerideritt 'Papeirdreim, Who ?vii.A fin:" ? ..1.?114,d.aft.eii .the elitti-5-15Mughr down GoVertiment, 1, is today' a nofecor'at.aCana dian university -but may be thee with oh :res;sfenee'?rnissitins to rGormany (Whore there are now 1'400.000 - ? Greeks), and 1tal., p;ile-smnking and . out- spoken. he ?told mO how . covered that the KYP chiefs had,',1 'bugged all Wnisterial converse-4 ,aions; and bound them into., ,?,.er,.1.,?nlowtes fier their Ainerf.:.:, . can mentors.. ? . "SrP. disrnissed ? the .two too. ,,KYP men aorl replaced, the..ellief. I with a reliable ./officer. General A Pore s, 1.416 was ordered to ?protect?, the Cebinet from Sitr???' .vealance.' .11,e came , back aoologeticallY tn. say V he , conldn't do it. MI the Oflujo- ?1 Ont Affiericatt? controlled by the CIA or Greeks under CIA , f supervision. There was no kind of distinction between the.' two, services. They duplicated func- tions in a counterpart relation- s a hip:, ?I ' effect, . they:, were a? agency,:, , r??,' ? ..? I Papandreou :tried to take the-, v?gYP the,. hillion,dollar? CIA?, ? Midget by having its ageets paid. rhy the ?-? Greek Treasury:* Het L failed in; this, btit succeeded in shifting the officer who had?beent liaison. man . between .the - KYR! rand ? the CIA since .1960.s ,?` He- was -PapadePoulos,e'ilie. present dictator,'.'he:Said. ?!": Soon Mr Papandreou learnt . that his conversations (which includd a,?? long: off;thetecord ? italk ;with this writer) were still being. iecorcled for the ,LIS ,Em3. bassy. He :asked ?KYrs. new? deputy thief to'make a thorough . 'search Of his offiee and borne for ' elettronic devices., '- 'It wasn't until much later that we dischVered 'he'd simply i planted a lot of new bugs: Lo ' and behold, we'd brought in an- other American-paid operative as otti4 hk said. -i ? ? KYP i, In fact, an American creation. It was built up aft et" the Greek' ? civil ? war of ? 1945-4.9i when the .US' took:' over '? from Britain the task of crushing the, Communists. ? ? 1.:\ Hundreds of KYP agents went to. America . for training by the, Office of Strategic Services and, in successor, the CIA.:. Among' tint)), for a &Arnim ill ,t'ehiilnpt (411 itidttilftlq WWI Mikii(IP dopoulos. A stringent investiga.-. :Hon was made of his anti-Corn,,, muniSt credentials. ??? What tlie?e cOntiine ,ha 'never been nig& public',"'bitta;? cke Itomrade of General Grivis,,h'en-; 'self, the wartime leader: of a, ;fanatically. anii-Corimiuntsts,pritl," ,vate army celled 'X,I confirmed circumstantial reports that.Papa.: dopoulos served as a..captein in jthe Security Battalioi*: raised' .by the Nazis , to, bold, ? down:- iBritish-armed ? partisans .during the war. ,Most of their work was, in .the Peloponnese;, ? ?dopoulos's home. ground;' 'where ; 'he .interrogated su*sbectsp:,i, Papadopoulos::? said mvicirifor-, mem,' Was a? ? great ? believer in ? 'Hitler's' new' ? order,'.? the, ? iwave of ? anti-Communist eel; pg.' , after the civil war,, the: pasts Whs iiwined clutc af,-,a,,-/ ? ! One ? of the sharkskin-Suited: species of US military advisers ? in -Athens hinted to. me, at ' a party, when I mentioned ,Pana-? clopoulos',s.-German background, ,that it was related to, his sub- ? ',servience to US wishes.. "George- igives good. value,' be 'smiled,. i:?becanse there are doeumeotst in Washington he wouldn't liked: let Out.' " I recalled the story told to the by a Harvard cltm who had come across- ?similar,..matial.?whiler ? ,researthingiftir:;a:bonk.:? When, Iie tried, to.,reach;;;its ;source, in( the ,,State ,b,epartment,,, he- crisply told te,;`,lay, eft,' rt This expl.iin,s one curiosity; of. the Colonel',greece, Writing int ,Tpn, ? p vER, recently after 'to fteiatance e s.? M IA C. . oadhease thited. r finn(qw inteuSe offiejal. Propnaliria; ,POrtrayed .Communisin?;:as . the( only eneinY.Greece had,diller had:, , ? ? .. ;and . Minimised , the .yerroitl,bc ,occupation,.. .until, &on. , Nazi., 'atrocities were seen as proteked, by ? the Cominunists:, This re'r writing .of history clearly :reflects the CliCtatOr.S, c011Cp'11 at?the,, cliillger, that thegap iii hiS,o4af., mography Seine day h ? . filled in.' ,, Not' that his patrons want to,-. shoot holes. in . the Proyisionalj PresidentN image, yet. As an arniabie,..JUSMAAG... officer, put, it : He controls the most use- ful piece of real estate arouad, here; a Private beach-head in the Med and the last stop for our . planes before Pakistan, George may be short on charm,: but we trust him. Well, we have to. ' Even ? after being rib-loved from his KYP post, Colonel,' .Papa dopoulos rema in ed ' the CIA'sfront man. Opposition. politicians .who sought the ear. for the purse) of James Pott, - CIA chief in Athens before the Coup, were often told : .`?See., George--he s my boy.' George's ' spy-work on the . Papandreous, which portrayed them as leftist fanatics, was a ? factor in CIA fears that Greece in. 1%6 was for a ititthrivOfi UI-f liD41.1.111g of in,: National ?Sceurity Council in Washington , mid-Vebruary 1967, when CIA reperts from Athens indicated that a right- ? Wing counter-coup was ii,,min- Appfeved-For--Release-2001408/07--: CIA-RDP77-0043-2R0004-00-1-90001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 ent. The question was Should,! the HS Embassy bp asked to stop it ? The answer, after some:! agonising, was no. Presidential . adviser Mr Walt Rostow ended ? the sssion by telling White J-louse aides and Near-Fast ex- perts that their non-action ' made the future course of events in Greece inevitable. I have confirmation of this from a senior civilian present at the. deliberations. What evidence is there that the -CIA worked behind the scenes to promote the 1967 coup ? First, the composition of the tiny cabal of Obscure officers who launched it. Four of the five chief conspirators were inti- mately connected with US forces or Intelligence. The fifth man, Brigadier. Pattakos, had no "direct CIA links, but was brought in for the sake of 'the, -armoured units he commanded. The. means: employed vere also significant. The NATO plan Prometheus,' devised in conjunction with , US officerS,I was a contingency scheme', fon 'se if Greece faced an immediatei u 'threat of war or revelution..'Ve. (when the Colonels staged tlii -lrevolt and flooded Athens with. -tariks, Greece's' Us allies did not 'tit.'' No, planes took' off,' ?no M arines' landed, no move cable 1110M:the:Sixth Fleet, which was oft Clete. ' Greek officers who '!felephdheid -US' colleagues were Ord to let-natore take its course. KYP bgent. who 'has re- floCI to Italy ? has Cast l'Itilther light' ori these events. 'lle.'insists that. a few key CIA' agents in Greek uniforms backed lap operations on the night Of the 'Coup, their task being to see that 'it was bloodless. ? ? Since', then a suctession of US leaders has visited Athens to -voice oPen.hpfttoVal Of the Junta' and its value to NATO (cities-, tionable- -after, -the- roctessivet purges of the armed forces). ?Secretary of "Commeree 'Stens, who collected millions of secret campaign dollars for Mr Nixon's, brought a message of a.diniration from the President. :Secretary of State Rogers cele- brated last Ainericati Independ- ;.ence Day with the Colonels. ?' ?His pleasure at visiting a coun- 'try where. so many principles underlying our own Declaration 'of Independence 'had their origin 2,000 years ago' was ','brought to a blushful climax ?when Papadopoulos lifted a glass to Mr Nixon's enlightened ? The high ,point of the Greco- US wooing came with Mr Agnew's grand tour of his ances- tral homeland. Washington had been surprised in 1968 when the ?:unknown Agnew was selected as- Nixon's running mate?a sur- prise dispelled by the discovery' that his name was backed by the Pappas family of Boston, one of the most influential contributors .to the Republican Party. Mr .Tom Pappas, whose forbears came from the same small vil- lage asAgnew, is the go-between for the Papadocracy and the White House. He enjoys both Greek and US citizenship and ? ?served as co-chairman of CREEP's finance . committee.. while keeping -clear of. any malpractice. Mr Pappas has boasted of his' pride in being an old CIA hand.' He is also proud of his ?500 million investment in Greece, a complex of .peti'o- chemical and steel plants, oil re- fineries and tanker fleets. He has won the Itinta's top prize, one pursued by rival investors as ardently as the Holy Grail*, the Greek 'Coca-Cola Monepoli4, Everywhere that Silirdi -went- in Greece, Mr Pappils.N4iit' too., His bulky, ? sweating figure squeezed from the helicopter behind the VIP. He arranged a dinner 'for Agnew and the' Colonels at which_the., Vice. President exalted' the tichifaye- meats ' of the junta and its Stant cd-operation with US needs and wishes. . Mr Pappas's former staff dir- ector at the Esso-Pappas works in Greece, Paul Totomis, be- came Minister of Public order immediately after the coup. The, junta needed a civilian tinge and Totomis was one of the few the Colonels could trust. The OA' .may still consider Papadopoulos as a itippet to be manipulated at will. But the dic- tator has not merely Iiifiged the Armed Forces of 'unreliable' ,elements. be-has built. up a new,: indoctrinated Officer corps in his ? own image over the past six.years ?` as long as Hitler had to make over the German Army,' remarks a gloomy ex-Minister in Athens. . This ? observer, once .whole- ?h'eareedly prd-American. told Mel ',that while it might be uSeful :the Short run for the Pentagon tO 'tete Greece as a staging poSt in its ventures, we must ask ourselves about the long run- -the kind of situation that makes ,The Vietnams of .the world.' He believes, taVthat the Americanal have given PapadopoUlov another clear '-assignment: Irft 'deliver up Cyprus, now -anitide-' SZ-111IGT0N STAR 10 July 1973 t Thew Eoe' ies _ . ' Years ago, a furtive fellow who worked for the Central Intelligence Agency explained to us that security is like an onion. You peel off the fragile- outer skin and nothing much is ex- posed, but the More layers that are taken off, the close* one comes to the! central crunch. _ That's why the CIA never adver- tised the location of its huge headquar- ters which Allen Dulles had tucked away in the Virginia woods just off the ; George Washington Memorial Park- way in McLean, and why, until just now, the signs at the appropriate turn- offs mysteriously read, "Bureau of Public Roads," or "Federal Highway Administration," or, spookiest of all, "Fairbank Highway Research Sta- tion." It's why CIA employes whom one' met at a dinner party always said they worked "for the Federal govern- inent," -or "the Pentagon," 'Until, 'half- way through the artichoke, one had forced them to come clean. It's why CIA telephone operators traditionally answered incoming calls with the CIA phone number only, without revealing the name. Well, it's something of a relief to find that there's now an overhead "CIA" sign on the parkway where pendent republic, so aS. to seture a further base in the Near East, and remove that bothersome 'neutralist, Makarios.- ? For the moment, the US must 'continue to back PapadOpouloa. Its commitment of merq.'; thoney,.: and, principle is too gat for,: tsudden ,change...:. Indeed, Uri 'Rogers fell over himself. atter 1 last month's coup to deny' that , ,the US would use current NATO' 'talks 'to" influence the pcilitiCal. ,- process in .Greece.' ' Hpw long ' maintained ?, id the face of NI-la-Mil and pcilitv- . :lar hostility .in Greece. ',,,0 ,.11,31 one'S guess?but When anfi it he ,time comes ta shed the/load, :it, 1 , may not he easy. .. ' . Tap us Governinent ii'irili?eli sha ten., its ? 'sundry ...secret. ,servicc hedtagglecl and at Odds. jPariadopoulds used .this and the ;MATS' . revolt; to malce his first independent asSumink CIA approval. for the deposing of the King. Having got away with it, he. will tneve tdivards his next goal' ?we may,distniss the promised- ?eleetiens as' a farce?the /life ?Presidency He hopes,.to 'rule, ,unchallenged, - as did Greece* last* dictator,' General Metatasi until his death in 1941. 1 ? Meanwhile,, defence expendi-, tire has soared. Britain, France, and Germany compete to 'sell hintrarins.,. Greece, superficially, is 'thriving:' it is strangely like, Mtissoppi's: Italy b,etwEen the.. Wars. ?''',,.. ? .i 7 1 ,' - And, like ' that pasteboat.a.; Caesar, ? Papadououlos has eX- pansionist aims. Who can tell,? If - he is permitted to snatch,, Cyprus, where' he may turn i next? He is, after all, an officer ' taiied'in ;the :old sCliool- of; the,, t M.egali idea the dream al a , greater Greece:, .. .'y . ,,, , ::, I a?t such a sign should be, and all those people who used to get lost going to the CIA, or trying not to go there, ? should fare better now.. As for the "Fairbank Highway Re- search Station," which we'd always assumed was a cover, there being no , good reason for Alaskan research ' here, we have just talked to the chief -of its traffic systems division, Dr. Wil- liam Wolman, and he assures us that it ! "really exists," and that while it is a ! next-door neighbor to the CIA, its du- ties have to do with highway research,, not with espionage. The computerizect program permitting certain District buses to extend the time available to make a green light is, for instance, a Fairbank Station baby. ("Fairbank was a very illustrious past member of, the old Bureau of Public Roads," Wolman said.) As for the new "CIA" sign, Wolman said the Fairbank people have "looked. at at it ourselves in the past few days, and we're satisfied. If tells the story properly." We recommend one addition, Under- neath the big green-and-white CIA marker, there should dangle a smaller sign, advertising: WHIS 1 ? 22 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 :Approved For Release 2001/08/07 : CIA-RDP77-00432R0001001.90001-6 WASHINGTON POST .10 JUL 1973 py-Plan Mekings Seen as ay t rod over By Susanna McBee 'Washington Post Staff Writer Meetings instigated by ?,Firesident Nixon in 1970 that led to an elaborate domestic ?"tirveillance plan were actu- 'ally "an effort to pressure" :V. Edgar Hoover into beef- ing up the FBI's intelligence 'operations, a Congressman asserted yesterday.. f Rep. Lucien N. Nedzi (D- iMich.), chairman of the louse Armed Services Intel- ligence Subcommittee, said he drew that conclusion af- .ter hearing 21/2 hours of 'closed testimony from Torn Charles Huston, a former White House aide. Huston, now an Indianap- olis lawyer, attended the 'meetings with representa- tives of the FBI, Central In- telligence Agency, and other security units. Upon their recommendations, he draft- ed the plan, part of which, he said he warned the Pres- dent was "clearly illegal." , Mr. Nixon, however, has said that he approved. the plan on July 2, 1970, and ,reseinded? it five days later . after Hoover vehemently ob- Jected to it. The plan called_ NEW YORK TIMES 12 July 1973 1Sen'ator' Ex-Eppoy Asian Affairs Poitioti 7.-f for easing restrictions on ,,government-directed bur- .glaries of "security targets," ; opening their mail, monitor- 'inm their overseas phone ;calls, and recruiting college :campus spies. Asked if the meetings of ? the ad hoc Interagency 'Group on Domestic Intelli- gence from June 5 to mid- July, 1970, indicated that the President had lost confi- , . ,,dence in the FBI, Nedzi rep- ' lied, "That wa's the impres- sion that was created" by. Huston's testimony. Huston, the congressman ' reported, said that the then White House' Chief of Staff. , H. R. Haldeman, thought White House officials "we're not getting the information they desired" from Hoover , , on Internal security threats. "I still have difficulty un- derstanding why this (ad : hoc) committee was set up , except to use these other (intelligence) agenices in handling Mr. Hoover," Nedzi commented. Mr. Nixon, in his 'May 22 statement on the Watergate case, said lie called the ad ,ity BERNARD GWERTZIVIAN . special to The plest York Times . WASHINGTON, July 11?The I The committee action on Mr. Senate Foreign Relations Coin- !Godley, which had the support, mittee,today. rejected the Nixon :of members from both the Re" Administration's. nomination of !publican and Democratic par- an.Assistant Secretary.Of State !ties, was tantamount to reject for East Asian' Affairs ,because Of his close identification .With Washington's. policies on indoL china. " ? .1 r. The rejection of G. McMor- trie Godley, former Ambassador Laos, was apparently the :first such deeision by the corit, mittee on a key nomination by any administration. ? By a vote of 9 to 7, the com- mittee supported its chairman, (J. W. Fulbright, who Moved ithat action on Mr. Godley be I"indefinitely postponed" ana hat Secretary of State William 'tion of Mr. Godley as the head of the State 'Department's bu- reau dealing with the Far East. What it means is that Mr. Godley's nomination, made public by President Nixon on March 16, will not be recom- mended to the full Senate for confirmation. An individual Senator could move to force a vote on the nomination, but committee staff aides said this was highly unlikely be- cause of the bipartisan na- ture of the rejection. could not remember a similar previous situation. P. Rogers be asked to give Mr., , In a meeting with newsmen Godley another assignment not . later, the Arkansas Democrat dealing with Southeast Asia. stressed that while the corn- At the same time, after a Mittee did not doubt Mr. God-, long debate, the committee ap- ley's qualifications as art Am'- proVed by a vote of 12 to it 406 that i;s4 two the nomination of William ft? been too closely Identified with Sullio.ln, former Deputy Assist-. -.the Indochina policy, which he ant Secretary for East Asian' A said was "an unmitigated fail- Affairs, to be Ambassador juke,", for the ,committee to ap-j the Philippines. _Approved-For--Release-21161-/08/0-7-4-CIA-RDP77-00432R0001 hoc group and attended its initial meeting because of campus violence and 'bom- bings throughout the coun- try. " Also attending the first ' meeting were Hoover (who , ? died in May, 1972); then ! CIA Director Richard Helms; Gen. Donald V. Ben- ,.nett, then director of the . Defense Intelligence Agen- cy; Adm. Noel Gaylor, then, head of th4 National Secu- rity Agency; Haldeman,. I and John D. Ehrliehman,. who was then Mr. Nixon's. ;domestic adviser.- , Huston told the subcom- mittee that when approval: ! for the plan was rescinded, ' Haldeman issued a "verbal order" to him to contact the . agencies and ask them to re- turn to the White House the . memos on the plan. Huston ? said he made the contact through an official in the White . House Situation Room and that the memos ? were returned. Last week the White . House declined' to say whether the rescission order was written or verbal. Ncdzi's subcommittee is looking into involvement of rove him to a post in which. he would have respongibility4 ..for policy on Asia. , ? .Mr.' Fulbright stressed that. 'he also favored the rejection of Mr. Sullivan's nomination, 'but that a majority of the como , Mittee believed that, as Am. bassador to Manila, Mr. . Sulhi- van would have less over-all responsibility and would he "less important" than Mr. God- ley, who succeeded him as Am- bassador to Laos in 1969. ; Mr. Godley, a gruff, out- spoken career diplomat, has had a history of assignments to difficult and, controversial posts. In 1964 to 1966, he was Ambassador to the Congo, now known asZaire , during a hec- tic time in its history. ' Both Mr. Sullivan and Mr. Godley, during their assign- ? ments to Laos, headed an un- usual American operation that involved the use of Central In- . telligence Agency commanders .(vvith a clandestine army fight- 'ins against a mixture of Pathot Lao and North Vietnamese units. Both. diplomats were called upon to aprove targets for bombing raids against Lao- tion territory. Mr. Godley, who has said he "thoroughly enjoyed" his four Years in Laos, was often de- scribed in 'news accounts as more of a military commander than a typical diplomat. He seemed to erijoY thelPiiHjOrrient of Om iULtwy vole lie bad tO play in approving air strikes. ? The Foreign Relations Com- mittee, known for its antiwar views throughout most of the .course of the Vietnam conflict, foreign ii telligence-gather- ing agencies, particularly the CIA, in domestic affairs. Helms, in secret testimony, has told the Senate Foreign Ipelations Committee that the CIA did not spy on the I, antiwar movement in this country. I But Huston wrote in one ! 1970 memo that while ? he had expected the CIA to re- fuse to cooperate with the ? ad hoc committee. Hems "was most cooperative and l helpful." j Nedzi said yesterday that he believes that "CIA in- volvement was minimal." He explained that he based his 'opinion on the fact that the plan istelf did not seek to ? expand the CIA's domestic role, which under the 1947 National Security Act is sup- posed to be severely limited. ?All the plan sought to do ? was increase the CIA's sur- veillance of Americans tray- ? cling abroad, but the agency I already had that power, Nedzi said. The congress- , man said he believes the I plan was 'never put into ef- fect, a pont disputed by anti- war activists. ?? ? -indicated to Mr. Rogers last last month that the nomina- 'dons of both Mr. Sullivan and Mr. Godley were in jeopardy, but Mr.?Rogers refused the offer of Mr. Fulbright to withdraw, '.their names, a staff aide said. Although Mr. Godley and Mr. 'Sullivan were nominated to their posts in March, the com- mittee did not hold hearings until May 9 and 10. At that time, both men underwent ex- tensive questioning, and both supported the Administration's 'policies in Indochina. Mr. Ful- bright said then that, while he respected thcm, he ,was "dis- turbed" that they had been so i deeply involved n the Asian policy and were to be re- assigned to the area. 'Mr. Sullivan was recalled for, questioning before closed doors of the committee today. He .was given what Senator Jacob K. Javits, Republican of New York, called "a grilling."? Late this afternoon the com- mittee reconvened and, in sec- ret voting, Mr. Fulbright pro- posed that action on both Mr. Sullivan and Mr. Godley be "in- definitely postponed." After sev Oat objections were raised, Mr. Vulbright withdrew?his motion, and the votes were taken sepa- rately on the two men. Mr. Sullvian's nomination was supported, with Mr. 'Ful- bright, and Senator Stuart Sym- ington, Democrat of Missouri, ? and Senator George McGoverm Democrat of BOuth Dakota, lit aid hi the Itirhi:4 ,Mto, ? On the vote on Mr. Godley, Mr. Fulbright was joined by the fallowing senators opposing the nomination: Senator Frank Church,. 23 00190001-6 J t Approved Fpr Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Democrat of Idaho; Senator Symington; Senator Claiborne Pell, Democrat of Rhode Island; Senator Edmund S. Muskie, Democrat of Maine; Senator Mc- Govern; Senator Clifford P. ,Case, Republican of New Jersey; ? Senator Javits, and Senator !Charles H. Percy, Republican of Illinois. . Vote a Bitter Defeat ? The vote was a bitter defeat fOr the Administration. It was unexpected, since throughout the long delay in action on' the ? two men, Senete sources kept easerting that eventually both t' would be reported out, favorably. There ; was no immediate comment from, the State De partment or the White House. Mr. Godley, acting eel the assumption that he would be ? confirmed by the Senate, had bee'r, working in his sixth-floor office as Assistant Secretary- designate. The latest edition of the State Department telephone book, published in May, listed him as Assistant secretary. Originally, the committee had : also delayed action on Graham ; A. Martin as Ambassador to South Vietnam, citing his for- mer experieneb as Ambassador ,.t? Tailand and some reports ; linking him to recommenda- tions for' secret funding by the C.I.A. to aid the Christian Democrat party while he was ;Ambassador to Italy. , But last month, after the 'Administration pleaded that all , Ambassador was needed in Sai- gon, the committee approved ? Mr. Martin's nomination and ?1ie was confined by the Senate, CHRISTIAN SCIENCE MONITOR 28 June 1973 National security' By David Mitch In the wake of Watergate, Congress. almost certainly will be looking into the subject of national security. And it may be time to recognize ? although few may be ready to admit it ? that national security investigations, in practice, often boil down to a question of whose ox is being gored., There are several reasons for this:: ? People disagree markedly on the degree of threat posed to this country by foreign agents and any domestic converts they use; what most of us regard as our civil "rights" are usually hopelessly, intertwined with] our sense of what is correct politi- callyi. and there is a natural instinct not to want our political beliefs in- veetigated. Congress is interested now for two reasons: because a team of in- telligence gatherers operating out of the White House on a national secur-. ity mission ? the "plumbers" who peed to find out who leaked the Pentagon papers to .the New York' Times and ? why ? got too extra- curricular in the political realm; and because it has been revealed that President, Nixon in 1970 appar- ently attempted a major overhaul of national security practices. All the major intelligence agencies were in- volved. . The President was opposed, as everyone now knows, by FBI director J. Edgar Hoover, who almost over- night became a darling of the very liberals who in the not so distant past so heavily criticized him for alleged "repressive" measures in this very field of national security. Similar questions came to a head in the V's, what with the abundance of causes, of ten abused and deformed to the extent : the democratic process was threatened by violence in the streets. Recall what the FBI was accused of in the '60's when civil rights was a hotter topic than if is now. Those who wanted instantly to transform the South into a haven of political rights bitterly criticized the FBI for not assuming a crusading posture in regard to new civil-rights laws. From the other side, those who opposed change in the South criticized the FBI for doing too much int the way of active law enforcement. Not being a national (or secret) police force, the ,FBI had to walk a thin line of investigating but lint outwardly enforcing. It had to hi- veetigate violations. But it did more, 24 ....... too. It infiltrated the Ku Klux Klan so heavily ? 2,000 informers ? that the laWbrea.kers were eventually afraid to do anything. The extremists' were sure their rights were being abused: But it was a question of seettrity for the oppressed. And so it seems that what is a question of security for one man is a case of political suppression to an- 'other. : At a symposium held at Princeton .two years ago, when ? disgruntled :liberals were eomplaining about FBI inquiries Into certain new left ele- ments, Arthur Schlesinger Jr. asked if they weren't glad the Ku Klux Klan was immobilized by the FBI in the .'60's. The replies were mostly mea- :sured silences. ? Recently this reporter interviewed a group of FBI and CIA sources who 'were involved in national security work in 1970 when the ill-fated 1970 ;study of expanded domestic in- ; telligence gathering was spawned. To a man they are highly embarrassed: ? about the manner in which their ? ; professional problems are surfacing ' as the Watergate spillway continues ; to gush. They also are concerned that', abuses of their functions by a few will !cause a general carelessness about ' national security questionsoYet they badly want the work kept in .profes- ,, * sional channels, as it has not been. ? It all makes ? one wonder if the !lawlessness that has grown in this country since the mid-'60's ? one only need look at the statistics ? is not the . basic cause of the Watergate morass. This doesn't excuse anyone for mis- deeds, especially those close to the top of the power structure, but 'neither should it make it easier to neglect the essential watchfulness required' to preserve the order so necessary to a free, democratic society.' Hopefully Congress will forget par- tisan politics, and make some general allowances for the past, as it reviews the subject that is always so delicate in a free and open society ? national security. To find the' wisdoni to nevi- gate gray, fog-hound areas, a nation ? Must lift its head above the mists of politics into a higher 'consensus that America does .have a noble destiny that must be protected. David Mulch ,is chief of the illonifor's Chicago bureau. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R00010019'0001-6'. VEA REMEIG 30 JUN 1973 Making Mischief Abroad ,US and ITT in Chile against Allende was studied at least twice by the ; White House. ? The .report is the basis for legislation designed to ? outlaw such private alliances between the US govern- by Tad Szulc ment and American corporations which is being intro- duced by Senators Church, Symington, Muskie, Case and Percy. The wording of the bill leaves no lout ? what the subcommittee had in mind after discow? ing the Mrs $1 million offer to the CIA. It thus provici,s- that "it is unlawful 'for any citizen or resident of the United States to offer to make, or to make, a con tribu- tion to any agency of the United States or officer; em- ployee, or agent of the United States for the purpose of ; influencing the outcome of an election for public office in another country." Another section declares it to. be . "unlawful for any officer, employee, or agent of the ; United States 1) to solicit any citizen or resident of the !United States to contribute to, or make an expenditure in support of, any candidate or political party, directly ? ; or? indirectly, for the purpose of influencing the out- come of an election for public office in a foreign coun- try, or .2) to accept a contribution from any citizen or tion groups to stage revolutions and coups ireful or to resident.of the United State for such purpose." interfere in local elections has been widely suspected The ITT's attempts to involve the White House and for nearly 20 years though it could never be precisely ' the CIA in the attempts to intervene in Chilean politics documented. Thus the United Fruit Company was be- have been generally known since Jack Anderson, the lieved to have worked hand in hand with the. CIA M syndicated columnist, published early in 1972 internal organizing the 1954 "rebel" invasion of Guatemala ! ITF documents bearing on the proposed anti-Allende (where the company had important holdings) to oust conspiracy. Until' the subcommittee investigation:, the leftist President Jacobo Arbenz Guzman. The corn- ! pany's Boston he,adquarters, as I still vividly recall, .however, the assumption was that FIT was the "ag- gressive" party and the administration remained was at the time an excellent source for newsmen in fol- passive, virtually ignoring the company's entreaties. lowing almost on an hourly basis the progress of the W?invasion. 'hat emerges from the subcommittee's report and In 1964 a number of US companies operating in : other information from sources close to the inVestiga- Brazil were thought to have secretly contributed funds ' : lion is that the Nixon Administration was profoundly ?with the CIA's knowledge?to the Brazilian ?Insti- . involved in this whole process in 1970 despite official lute for Democratic Action (IBAD), a civilian rightist !claims of US neutrality in the Chilean elections. Infor- group that played an important role in triggering the . ?illation developed by the Senate investigators thus military revolution against President Joh.o. Goulart, a , ; shows that Chile was the Subject of a meeting in June highly incompetent and corrupt leftist. Later that same i 1970 of the top-secret "Forty Committee" in the year the ITIT provided funds (as did the US govern- ? White House. The "Forty Committee" is the National ment) to campaign against Allende in his first but un- Security Council's organ in charge of studying and ap- ; successful bid for Chile's presidency. proving plans for covert action abroad by the CIA and But the first lime that this kind of activity could fully other US intelligence agencies. be documented and made part of official reeord was Thi g committeei presided over by Henry A. t the March hearings (by the subcommittee on " ' Kiscinger, the Ptesident's special assistant for national!' national corporations of the Senate Committee on ;Ion: tity affairs,' and iits membership includes the Foreign Relations). on MI' and Chile. A lengthy sub- .1 'chairman of the joint chiefs of staff, the deputy secre. ? committee report, issued this week, describes in , ?-y of Def4nse6tfie deputy secrettary of State, the. detail the contacts betweenJhe Nixon administration ? tectof o Centrahintellitence and, until last year, the and FIT during 1970 aimed first at defeating Allende . attorney ge?Ierahl It is interesting to note that in .the ; and; later, at keeping him from being confirmed by - sti' Mater 1970i. when the Nixon administration' at.; ; ..the Chilean parliament. ? ? tempted to put into effect ,its secret domestic The central points in the report are sworn testimony genre plan, John Mitchell was attending the meetings that M' offered the CIA $1 million in 1970, for anti- ' ;61 th e rorty Committee" in 'his capacity as attorney Allende operations, that while the agency rejected the, ;.genetal, At) reqUired, Other top officials may be invited offer it subsequently suggested to the,ITT its own plan ,Iti Sit In On krn, Mingo of the "Potty Committee:" for cieating economic chaos in Chile, and that action The Netiatip otautitimittetes roport tiold that,at least 2S: : The Senate may soon be moving to break the long..: , standing shadowy alliance between big American cor- porations and the Central Intelligence Agency . and ? other United. States government organs for carrying out covert interventions in the domestic political af- :fairs of foreign countries. As an outcome of hearings , held last March by a special Senate subcommittee on ? the joint involvement of the White House, the CIA, the State Department and the International Telephone and ! Telegraph Company in secret efforts to block the 1970, election of Chile's Socialist President Salvador Allende ! Gossens, a bill is being introduced this week to declarel such alliances illegal and punishable by imprisonment and fines. ? That US corporations have cooperated in varying degrees in the past with the CIA and foreign opposi- IA.R.DP-77-00432R000100190001-6. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 three conversations, on Chile .were held between Richard Helms, then CIA director, and John McCone, a former CIA director and currently an ITT director. Accoiding ci testimony by McCone in executive ses- sion, he had expressed fears of a victory by Allende? I. rrr has iniiportant investments in Chile, 'including the local itelephOne company ?and? asked Helms '1whether the US intended to Intervene in the election to encourage the support of one of the candidates who? stbod for the principles that are basic in this Country." "Mr. "Helms tbld Mt. McCone that the matterhad - been considered by the 'Forty Committee," the sub- ;committee reported. i"Helms. indicated that some 'minimal eyort would be mounted which 'could be managed within the flexibility.of the CIA budget,' that is without 4eekind additional] appropriated funds. Mr. Helirts wavety pessimistic about the chances of Mr.I (Jorge) Alessandri and was ,of the personal .opinion that Dr. Aliende would win. This opinion was con- trary to the: official reports Of the, US Embassy. Based upon polls ;commissioned or undertaken by the CTA,, the 'Embassy was reporting that Alessandri would win: a plurality." Alessandri was the independent , date backed by rightist Chilean groups, and ITT's ? hopes were,ridi rig on him. . Acord int; to subcommittee sources, the "minimal effort" promised McCone by Helms after the June meeting, at the White House was an expenditure of $.100,00(1 in CIA 1 funds to assist anti-Allende news media. ! It was also )1elms, according to the subcommittee, who, in response ,to McCone's request, arranged for a meeting between FIT President liarold S. Gene and William V. Moe, the chief of western hemisphere division of the CIA's directorate of plans, the agency's clandestine Operation? branch. H 'MI's at this Meeting in July; 1970 that Gerken Made the $1 million offer to the CIA (4s he had also done in 1964) and Brbe turned it down. If, indeed, the CIA and the rest cdthe administration - remained relatively Unresponsive to ITT pressure dur- ing the summer, this attitude changed after Allende won tht! lariOst:nuMber or, votes in a three-cornered election 'On iSeplenthel- 4. BeeauSe he failed to obtain: a clear Majoi,ri1y0 latiwts4r, the Chilean parliament had :to choose between him and Alcssandri, the runner-up. To force the choice of Alessandri thus became strategy of both rIT and the CIA. second meeting.? or, the 'Tort), Committee" on 'Chile was held on September 14 or] 5, according to ,vestigation sources, and there the administration,toch matters into its own hands? The 'subcommittee rep4t. 'said that "on, September 29, for the first time in die, , course of the contacts between FIT and the Uniteld States government, the government took the initiative. ? Mr. Broe, at the instruction of CIA Director. Richard .Helms, called M r. Gerrity inN.ew Yor'le?and arranged to. meet 'him there." .Ned Gerrity is an ITT vice president and, according to' the subcommittee, "Mr. Broe proposed a plan to ac- celerate economicshacts in Chile as a means of put ti4 pressure on Christian ; Democratic Congressmen to ,vote ligtithot Dr. All doterin any ev@tit tr weaken Pied Allende's position in case he was elected." The subcommittee report said that Charles A. Meyer, 26 , Approved For Release 213131/08/07TCTA-RDP77-00432ROCIOTOGIMU-6 then assistant Setretlry of State for inter-American affairs, testified that "shortly after; the September 4.. election, the Forty Committee, at a meeting which he attended, met for the express purpose of discussing US policy in connection with Chile; bur he refused. to. inform the Committee wthit precisely was said at the meeting, what decisions; if any, were taken and What instructions were communicated to Mr. (EdWard) Korry, the US Ambassador in Chile." "Because 'neither Mr. Meyer .nor 'Mr. Korry Would communicate to the Subcommittee, the content of the instructions which Mr. Korry received, and because, .the State Department would not permit the Subccini. mince to have access. lo the cable traffic between the US Embassy in Santiago and. the State Departmentit is not, possible to determlne ;whether Ambassador }Corry did in fact receive a cable, vhi'ch, in substance, authorized 'him in tile name of the Pre.sident to Jo everything possible, short of a Dominican Republic type intervention, to stop Allende from being elected President or Chile," the report said. It added that 'Mr.. Korry did testify, however, that immediately after Allende won a plurality in the popular election ... he Sent' a ten-pointeable to the State?Department indicat- ing that an Allende presidency .would not be in thl best interests of the US." , The subcommittee said that, contacts between the. CIA's Broe, and, top rer officials confirmed well into 'October. as the agency's plan to disrupt the Chileain economy remained under discussion. Cu riou sl) eVer, the ITT thought the plan wat Unworkable Tr ? 'I his is a fair recital of the 1970 events and the record.' shows* that in the end the US abstained from rash actions although it used its influence to destroy Chile's , international credit standing. But the subcommittee's report raised a major question concerning US policy- making processes in the light of the power exercised by the "Forty Committee." Put another way, the clues- , tion ?just as relevant today as it was in 1970?is whether the "Forty Committee" grants broad policy mandates to the intelligence community and leaves it free to implement them so that the blame for failures of specific projects would be laid to the CIA's door? not the President's, Commenting on the t hilcan episode, the subcom- mittee said that it cannot determine whether Helms' instructions to 13 roe to propose economic chaos meas- ? tires to ITT officials "were a direct outcome of the 'Forty. Committee' meeting." "It is clear, however," the report said, "that Mr. Broe's proposal of concrete measures, designed to create economic difficulties in Chile was in striking contrast to the pre-September US Gov- ernment policy of allowing events in Chile to follow their natural course without substantial interference from the US Government." It describes as "weak" the testimony by Assistant Secretary Meyer that Broe's "economic chaos" proposals were a "policy option" and not a "change in, policy." The subcommittee asked these luestions: "With what detail are instructions of the 'Forty Committee' communicated to the CIA? Is the 'Forty. Committee' informed in ntivntwo of the aindiliities Agency cOntemplates using in carrying out an assign- ment? Specifically, in this case, Was it informed by the CIA that in carrying out a. mandate to explore means of ? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 influencing the political situation in Chile, use of US companies was contemplated and specific proposals were being made to a particular corporation? Was the benefit to be potentially gained, weighed against its overall negative consequences for US business abroad by the 'Forty Committee'? Or was Helms merely given ? a general indication of what was desired, to be imple- . mented as he saw fit? "Did the 'Forty Committee' consider the conse- quences which would have ensued in the event that the plan to create .or accelerate economic chaos in Chile had been successful? It had been the custom in Chile for the Congress to confirm as president the winner Of a plurality in the popular election. There was ample evidence that an attempt to interfere with this custom would have lead to bloodshed and, possibly, civil war . . . Did the members of the 'Forty Committee' .ade- quately consider the possibility that, once having. launched the US down the road of covert intervention, _ PENTHOUSE July; 1973, '1 I :' ? f 't, j ? The rulers of the State are the only ones who should have the privilege of lying, either at honls Or'abroad; they may be allowed to lie for the good Of the state, 1.1? --Plato The Republic, Book Three . , It's a little frightening. The machine can listen to what you're saying and tell, with 'a high degree of reliability, whether or not you are lying. It's called the Psychological Stress Evaluator, and it is, in effect, a lie detector. Unlike the polygraph, it needs no physical connection to the subject; therefore it can be used without his knowledge. It works.from recordings of his voice, so anything on tape, sound track or phonqgraph record is fair .game for the machine. It is the first lie detector that can be used on a dead man. Early this year, one of these instruments came into my hands. I resolved to use It to probe one of the darkest mysteries of recent history, the assassination of President John F. Kennedy. I set about collecting every recording I could lay my hands on of anyone who had any direct knowledge of the affair. Soon I had Compiled the tape- recorded testimony of twenty-two persons?eyewitnesses. Dallas policemen, the pathologist who conducted the autopsy, members and staff of the Warren Commission, Jim Garrison, Clay Shaw, and even Earl Warren. I ran the tapes through the PSE systematically, taking each controversial point in turn. Did the rifle which 6elonged to Lee Harvey Oswald kill President Kennedy? Was Oswald the killer? Were others involved? What of those mysterious autopsy photo- graphs which the Warren Commission never saw?do they support the Commission's llone-gunman, single-bullet theory? And what about the warren Commission itself? Did its members conspire to cover up the truth? Slowly a picture emerged. It is blurred, and it is not .the picture I expected. Not all the details are there, but I guarantee this: you May believe the lone-gunman theory of the Warren Report, or you may believe the' government-cons'piracy theory of Mark Lane, Jim Garrison and others, but either way you are Wrong. The PSE is not a crystal ball. It was invented as an-interrogation aid, a fUnction It performs well. To my knowledge, this was the first instance of its use as a tool for historical research. To understand what I did with the PSE, one should know some- thing about the device itself. I first heard of the Psychological Stress Evaluator last 'yea?, when I met two of Its inventors, Allan D. Bell. Jr., and Charles A. McOuiston. Bell and McOuiston, both former lieutenant colonels, retired from Army intelligence several years ago to form a company called Dokter Counterintelligence and Security. Inc. It was a logical second career for the two men. Both are experts in the technology of espionage. Either orie plonng its use as a defense against skyjack- could pick Um lock on your front door in fess time than it lakes you to find your ing and telephoned bomb threat, and as a key, Colonel Bell %%tart a Black Belt in karate, is an accomplished sworcIsiticin and means of speeding up customs inspec- small-arms expert, and hat a dOzen inventions to his credit, horn ahlibugging devices Lions. Some doctors and psychiatrists are , p'. to a aiitilrituriPari roltrodol tamern. Colonial McQuiston Is one of the foremost potvgrtioii Using PSEs to studyatient6 Physical and mho ftiti WNW-inn! COin111140E! 43 1 ens In tnal,/.0.1a opeClatIal la radio anti autlIO SW4?1140160, dad h itAkattalil ,ve liwn?ii00 &QOM n primmi ?1?y George O'Toole nr3 11E11 [2111:MME : other, more direct, measures might become necessary to insure the desired result: stopping Allende tIom becoming President of Chile?" The subcommittee's final recommendation wasIhat ? "the time is ripe for an in-depth review by thd..,ap- ; propriate congressional committees of the decision ? making process in the authorization and conduCt of . CIA clandestine operations." ? There is a bizarre ,footnote to this whole story. The, , CIA's director last March, Dr. James M. Schlesinger, authorized Broe, his chief of clandestine operations' in Latin America, to testify before the subcommittee only after Senator Church,. its chairman, warned him that i otherwise the record would show ITT'S involvement t alone and thus possibly prevent it from collecting US government. insurance for the nationalization of the telephone company in Chile. As it happened, however,. the Overseas Private Investment Corporation, the gov- ernment's investment insurance agency, turned down ITT's claim anyway. Poetic justice? The PSE grew from an effort to improve the polygraph. Standard polygraphs ' measure four variables: pulse, blood pres- sure, respiration and perspiration. Some also measure additional physiological vari- ables. The more variables .measured, the more reliable the polygraph. Bell and McQuiston discovered that the frequencies composing the human voice are not fixed; they shift very slightly from eight to fourteen tim..z?s every second. But when the speaker is under stress, this nor- mal frequency modulation disappears. What remains are the pure component fre- ' quencies of the voice. And a strong indica- 'Lion that the speaker is lying. The two men developed a device to detect this phenomenon and planned to use It as an additional "channel" on the poly- graph. Then they discovered that the new variable was so reliable and accurate a measure of psychological stress there was really no need to measure the other poly- graph variables. Freed from the necessity of strapping the Subject into a chair, stretching a pneumo- graphic tube across his chest, gluing elec- trodes to his palms, and clamping his arm with a blood-pressure cuff, the PSE proved to be much more versatile than the poly- graph. Because it can work from a tele- phone or tape recorder, the PSE can be used without the knowledge or even the physical presence of the subject.' I asked Colonel Bell to tell me about some of the things the PSE was being used for, especially cases in which a conventional polygraph couldn't be used. He mentioned that the police in Howard County, Maryland, have been using the PSE for two years; they have had great success in establishing the innocence of suspects who were afraid to sobmit to a polygraph examination because of that machine's forbidding aspect. Bell went on to describe some of his invention's other uses, actual or potential. Dektor and the Federal government are ox- ? Approved for-Release4004408107-: -CIA-RDP7-7--004-32R00040-0490001-6---- Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 group that investigates UFO reports, is the "outside issue." !thought he did. Very good, said Kradz. bid now using the PSE to interview witness?s Most people, Kradz pointed out, have : I notice anything else *about the interroga- in UFO sightings. . , some sort of deep secret they don't want ! tion? Well, yes; there was this business tasked Bell if he would lend me a PSE known. When faced with a polygraph exami- 1 about the ring. Perhaps the suspect had to experiment with, in order to write a piece nation, a person may be more concerned stolen it. Kradz smiled. No, the kid hadn't about the device. He agreed, with two con- that this outside issue may come to light ? taken the ring, but he was gays i-le had clitions. First, I must take Dektor's three-day than he is about the actual substance of exchanged rings with another guY:floOody course in operating the instrument; second, the interrogation. This can produce irrele- knew about it. The kid didn't reallji expect ' t PSE I must review my vent stress in some of his answers, and mis- to be asked about it. because Kradi had alterg . interpretation of its output with his staff, in I lead the examiner. Therefore it is is neces- the interest of accuracy. This seemed rea- . sary for the examiner to interview the sub- ' sonable, so I agreed. ject before the examination, go over all of The course was held in the meeting room the questions he intends to ask. and assure to give some thought to what I might do of a Holiday Inn in Falls Church, Virginia. the subject he will ask only these questions. witii the PSE. I was particularly interested b lb' I ter when , gone over all the questions with him. Still, when the ring was mentioned. he panicked. By the third day of the course. I had begun The eight other students were employees a , of customers who had purchased the Iran my first real interrogation tape. ' device. These included a private detective ; . ? The interrogation always includes the 'agency in Pennsylvania, a New York chain ' question, "Are you afraid That I will ask you . store, and the security service of an East about something we have not discussed?- . African country. The instructor was Mike A negative answer with no sign of stress Kradz, a criminologist and retired police eliminates the outside-issue problem. Also, officer. Kradz projects the iough-cop the examiner always asks some innocuous questions, such as, "Do you like the color image, but he is a living rebuttal to the Po- ' lish joke. There is nothing about forensic blue? subject's in order to observe the ? science, from fingerprints to polygraphy, on general state of tension. And thereis always ? one "red-herring" question. ? in the fact that the device works horn a tape recording. Sound-recording technology is almost a century old (Edison invented the phonograph in 1877), and an enormous emu!. n of history is stored on phonograph records, sound tracks, and tape and wire recordings. I thought how many press con- ferences, interviews and public pronounce- ments are stored away in the film and tape archives of the world, and how many CILICS- lions could be settled if we knew for certain that the speaker had told the truth. However, which the man is not an expert.the ? ? ? The red herring is used to identify since interrogation with a PSE seemed to The first morning of the course was "guilt complex responder." Such a person devoted to the physical operation of the require such an elaborate and structured shows stress when he respond's to any situation, I wondered if it could be used PSE. The device is used in conjunction with 'accusatory question. The examiner may , a Uher tape recorder, which has four speeds ask, "Did you steal the watch?" when?it is and can be manually wound back to locate money, not a watch, that is missing. A ' a particular point on the tape. The testimony stressed denial will alert the examiner, who to be evaluated is recorded at a tape speed carefully compares this response to the of 71/2 inches per second, then played back stress produced by questions about the and stopped at the beginning of the utter- missing money. "ance in question. The recorder is slowed That night the class was given tapes of to 15/16 inches per second and played. The real police interrogations. In most cases, sound, no longer recognizable as a human Kradz was the examiner; and in every case. voice, is a long, low rumble. he knew the background and resolution of The PSE itself is built into an attache case. the matter. One case I was assigned con- The case opens to reveal a chart drive, sim- liter to an electrocardiograph, and a number cerned a young man accused of stealing money from his father's store,. Kradz started ? of buttons and knobs. A single cable con- ! by asking the."outside-issue ' question. No. nects the PSE to the tape recorder: the young man replied, he was not afraid As the tape recorder reels slowly turn, Kradz would ask?him a question they hadn't and a rumble issues from its speaker, the discussed. Then the following exchange PSE stylus dances back and forth across took place: ? ' the moving chart paper, leaving behind a "Do you live in Howard County?" , ragged trail. Then the recorder is stopped, "Yes." ! the chart paper is stopped, and that's all "Do you suspect someone of havihg taken there is to it. The result is a strip of paper the money?" with a squiggly line. The rest is up to the "No." "Are you wearing a white shirt?" "Yes." "Do you know who took the money?" "No." . stalks of different heights sticking up (and : "Are you wearing a ring?" down) at irregular intervals. But add some "Yes." stress, and that hedge begins to look "Did you take the money?" trimmed. The greater the stress, the "No." ,II hoped that Jim Garrison would prove that smoother the shape. If the subject was There were a few red-herring questions he had solved the mystery. He didn't. Time 'experiencing the hard stress which accom- panics deception, the over-all outline of the passed, public interest waned. and the to check for the guilt complex response. : p ; The questions about wearing a white she, figure tends to take on a rectangular shape, , details of the controversy dimmed in my and a ring and living in Howard County h,-I.: mind, leaving only a dull residue of doubt. .a concertina as seen by the player. Kradz showed slide after slide of charts made dur- been included to measure the background I had .despaired of ever learning the truth. Now I knew what to do with the PSE. ing actual police interrogations. He told us' stress elicited by irrelevant issues. i I ran the tape and charted it on the PSE . It was all there: the statements made the background of each case and pointed , before television cameras by eyewitnesses, out the tell-tale signs of deception, when- All bit two of his responses were on- . . stressed. The question about suspectine policemen, medical examiners, members ever they were present. w That night each student took a PSE back ; who took the money produced enough of the Warren Commission. Somewhere in ' to his room to practice operating it. Some , stress to indicate deception. The other a network-television vault were the sound q . coordination must be learned to betorne " 'tracks, with the tiny, inaudible variations in 1 question which produced stress was, Are you wearing a ring?" In tact, his yes to that voice frequency that could settle once and . facile in handling the recorder and the PSE. i was accompanied by such stresn as I had for all the question, "Did Oswald, acting ; but clearly the difficult part of Mu courflo seen only once or twice in the class slides, alone, shoot and kill John F. Kennedy?" ? would be learning how to read and interpret 1 Then ext morning Kradz called on me. My immediate problem was getting the charts. Did the suspect take the money, he asked. access to the recordings. I was certain the The next day we learned the theory of I,...said I didn't think so. Kradz nodded. Did television networks would. have them. bu polygraph interrogation, which applies to _.,e suspect who took the money? Yes, 1 I wasn't sure exactly what to ask for. There the PSE. There is, first of all, the matter of, Zdt Approved For Release 21711:111081O7 : CIA-RDP77:-0432-Roo01001?00-01-4 ' human eye and brain. On the afternoon of the first day, Kradz showed us what to look for. The unstressed voice looks like an untrimmed hedge, with the way I had hoped, as a tool for historical research. During the lunch break I took Kradz aside and asked him. Could the PSE be used out- side interrogations, where the speaker was telling what may or may not have hap- pened? Yes, he said, the PSE could be used for that. Where there was no stress, I could be confident that the speaker was telling :the truth. However, when I did find stress, ?I had to bd very careful about reaching con- clusions about its cause; it could result from something other than deception. But if I found a stress pattern in , the testimony of !several witnesses to the same event. I would !very probably have uncovered deception. ? Encouraged, I reviewed the list of recent ' mysteries. Watergate was, of course, the first to come to mind. The Ti'I affair was ?also of recent interest. The Kent State inci- i dent had never been fully cleared up. But one subject seemed to loom above all the rest?the assassination of John F. Kennedy. Like many others, I have found it difficult to believe the Warren Report, When Mark Lane's book came out. I read it carefully. I read much of the other criticism of the Warren Commission's findings. The more I read, the more I doubted the official ac- count of what happened that day in Dallas. I waited for the real story to emerge. It didn't. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-e Must be thousands of hours of sound . recordings relating to the assassination. Where, among all this talk, was the critical ? testimony? I started digging and soon discovered ' the existence of a group called the National Committee to Investigate Assassinations, , located in Washington, D.C. I called the number listed in the telephone directory and was soon speaking to Bob Smith, the Committee's Research Director. I told Smith that I was a writer and wanted to do a piece ? on the John F. Kennedy assassination. I asked him for an interview, and he agreed. We met in the offices of Bernard Fenster- ?wald, a successful criminal lawyer. and , Director of the Committee, in a modern office building a few blocks from the White House. Fensterwald is a small, dapper man with a thin beard. ? Smith is a lean, intense chain smoker. Both mee appeared to be in their forties. "Before we begin," I said, "I think I should mention that I, used to work for the CIA." ? I have run across it often, the theory that the CIA killed Kennedy. It seems absurd to me, and I (10(11 believe it. I worked there for three years and never saw or heard any- thing suggesting the Agency was involved in the assassination. I never met anyone ,there I thought capable of doing it. Still, ' I have learned through bitter experience of the suspicion which attaches to former in- telligence officers. Epidemics of paranoia tend to accompany us through life. I thought I'd better get that issue out of the Way. Smith. and Fensterwald exchanged glances and smiled. Fensterwald told me? that they did not necessarily believe the CIA assassin theotry, and they certainly didn't' mind talking to a former Agency employee. .Relieved. I began. to outline my project. I asked if they had heard of the PSE. Both men were dimly wkare of it. I described. the device and Started to detail the way it could, be used as a research tool. They im- niediately understood what I was proposing and were tremendously enthusiastic. Yes, they said, there were many key statements on tape somewhere, and they wOuld be glad to compile specific references for me.. Furthermore, they could, in some cases, provide me with the tape.iThey said they would be in contact when they had some- thing for me, :- While I was waiting, t experimented with the PSE.I I telephoned a friend and told him about the device. I asked if he was wilfing. to play it little game to test it eut, and he. reaped. lid picked a number between one owl teu.i I asked him, "Is the number one?" "Is the number two?" and so on, and he cm ,'ered no each timet, I recorded his i responses, ran them through ,the PSE and called' t im back. 'The number he picked, (told hi n', was five. ? , He w4s dumbfounded. He had not hoard, of the M:-. and had thought I might be con- 1 coctingisome elaborate joke at his expense. But when I called back and correary,k1.0-;, ? tified thf number he had picked, he realized I I vies sr, rious, And tie was shockc.,d.:' I' pl4ed the Itiame galle. several timeS! with oth.:as and did not 'always have sirnitar,; 8t1CCOS. With, Bernard Fenstorwald,.1 ,able only to narrow the answer down to.twO4 number,;, one of which turned out to be tor-, Irect, With others I have been completely unable to identify the right number. The ? 29 problem with this game is that the player knows that it is just that. He knows, that I ?know he is lying, it is a socially acceptable situation, and there is nothing at stake. The stress which accompanies real deception Is not always present.. , I obtained a tape recording from CBS ,News of a portion of a Sixty Minutes program . in which Mike Wallace interviewed Clifford Irving. The interview took place during the height of the controversy, while Irving was still claiming to have gotten Howard story through a series of inter- Mews with the billionaire. It was a consum- mate job of lying, embellished with such convincing details as Irving's disagreement with his colleague Susskind about whether Hughes kept his organic prunes in a paper or a plastic bag. Sixty Minutes re-ran the segment after Irving's confession because the man's sheer virtuosity as a prevaricator was amazing. l, was interested in the inter- view for a different reason: at the height of the Controversy., trying had been given a polygraph examination and had passed it. (wanted to see if the rran who had beaten the conventional lie detector could also beat the PSE. I selected a point, in the which Mike Wallace suggested that Irving had riot interviewed Howard Hughes, but had hap- pened on some transcripts of Hughes. state- ments. Irving asked how he could have hap- pened on themaWallace rejoined, "Where did you happen;on those transcripts?" Irv- ing replied, "I got the transcripts from Howard Hughes.". I charted this statement on the PSE. It was a perfect example of total stress, horizontally blocked, with the smooth, "trimmed-hedge" wave form. Clifford Irving was a master liar, and he had beaten the polygraph, but he would have been caught by the PSE. A few days after our first meeting, I received a call from Bob Smith, He had turned up a few things for me. ( visited him at the Committee's office in downtown Washington. He gave me a tape rec'erding and a typewritten transcript. The recording was the Louis Lomax television program of Sunday, October 16, 1906. Wesleyt.?riebier, a member of the Warren Conimission's staff, was the guest. The transcript was of a CBS News television program entitled The War- ren Report, which had been.broadcast in (our one-hour segments on -June 25, '26, 27 and 28, 1967. I . ? I. I examined the trans' cript. The pregrams had been narrated by Walter Crorrkite and tion of the studio audience. Given his highly emolional state, he did not seem a 'very. promising subject for the PSE. Nonetheless.; I decided to give it a try. Charting a tape with the. PSE is a long and tedious process, and it was impractical to chart the entire prograrn. I ran some of Liebler's statements which were noWn dis- pute and discovered, as had exOecteci, a. great deal of stress. He was pretty charged up. Most of the exchange between Liebler, Lomax and the audience Was argumenta- tive and did not deal with specific factual points. (found two key statements by Lieb- ler, though,-and I charted them. , The first statement, in response tea ques- 'lion bytomax, was, "I have no dob6t about the conclusions of the [Warren] Report." Plenty of stress was evideht, but not much , snore than in other, statements. The second statement related to those Warren Commission documents which were not ineluded in the Report?they were locked .up in the National Archives, Lomax asked Liebler if there wee anything in the documents which would alter Liebler's opiriion. Taken literally, it was a strange, question, since Liebler had seen the docu- ments and, if they would alter his opinion, they would already have done so. Lomax probably meant to ask if the, .docurnents would conflict with the cdnclusions of the Warren Report. Whatever Liebler thought the question meant, he answered quickly, "Oh, none., mane at all." the PSE showed much mode stress here thin during any .9f Liebler's other statements i ? It was all pretty confuseti and fuzzy, and it didn't telt me more than I'dalroady know,c1; Wesley Liebler was pretty upse( when , appeared on the Louis 1..0maX program. I hoped that the CBS tape would yield rnre? enlightening res'ults.. I finally received a !dell from CBS s Washington office sayir,10 the tapes Ii d arrived. I broke a few tr;a(fic ?Oro g there, to pick up the ;tapes and :re.tritning to my apartment. I 00 alreudy snlectod tj points I ?..vanted?to check from trandeript of the program. I mounted the first tape ow ,the recorder, ran it 'down to the', first point of. interest, and, turned oh the E. For the next three days bed ,nighti,,I charts. When I finitshed. I had ,pi boxier:tie, m kitchen I loef4was arikte pLia'p in chart paper, jtItit:1,ified,..a mucli clears:.'r idea of what cud 001 did. nel happ0h,;101. day in Dallas.l. ; I ? I.!. Before I describe my results, I feel that .other CBS newsmen, They reviewed every I must of ler tho reaciOr a few comments:and. major Ooint of controversy that had been Iwords of cautio: seised by the .criliCs of the Warren Report.' 1. Although the PSE is a well-established 'interviewing eyewitnesse., Dailas. n011ee-: interrogation aid, it has not been validated men, medical ex'pniir,,,,,ri.:, bpjlt.Mic speeiak as a tool for historical research. Even though ists and manVethe'rs wiio'li.:id some insidri. experts, familiar with the machine believe 'knowledge ?lithe, Assassination of John FI, that it can be uied in this way, my project For l Kennedy.. wha II 1?160, in mind. it was, was the first attempt to do so. ,a gold mine. I telepheneci CBS and learned, 2. It is easier to demonstrate with the PSE that I cotild gut a copy ot the program s, that a speaker ,is telling the truth than to soundtrack if I wduld pal) for the dubbing , show he is lying. Stress can be caused by charges. I told them to g0 ahead, . ' things other than deception; but the ob. .Next I played the Lorriax-Liebler tape.: sence of stress is an extremely reliable. Apparently Mark Lane had been on an . indication of truthfulness. 01 course, the earlier Lomax prograrh, and now Liebler was on to rebut him. I didn't need the PSE to know that Liebler wat stressed. He , seemed very agitated, anti his breathing , audibly indicated his tensidh. He was angry about the things Lane had said, the ques- tions Lomax was asking him, and the mac. absence of stress does not prove that a statement is true, only that the speaker . believes it to be true. 3. Although I found 'a great deal of stres0 in the testimony of the assassination lapoSi iryno single instance can I say that the dividual was lying. point this out not Only Api.ovecl For Release_211Q1/08/07 ? CIA7RDP77,00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 o protect myself frOm libel suits but be- ause I am not morally certain any one indi- idual was not telling the truth. 4. Nonetheless, stress in the testimony of many witnesses to the same event makes the mathematical probability overwhelming Mat at least some of them were lying. These points could not be better illus- trated than they were by the Jim Gar- rison-Clay Shaw Affair. Garrison, it may be recalled, was the New Orleans District Attorney who, in 1967, claimed to have solved the Kennedy assas- sination. He presented an elaborate case against a local businessman, Clay Shaw, and others, as members of assassination conspiracy. In one of 'the hour-long ?pro- grams, CBS intervieped Garrison, Shaw, and two other people involved in Garrison's allegations. ? . In his interview, Garrison was hostile and did not make many firm, factual statements I cduld lest Cvith the PSE. However, he did say, "There's no question about it [that he knew how, the, assassination had been car- ried out] , we know the key individuals involved ... there is no question about the lad! [the conspirators] were there [in Dealy Plaza]." The PSE showed good to hard stress on each of these statements. I also ran a noncontroversial ,statement of Gar- rison's as e control: "Oswald was not killed inere [at the movie theater where he was suestecl) r and found no stress. Garrison's :!:ircnients about his case against Clay etireeety indicated deception. , fec4 tl ran some statements by Clay Shaw . a/del his involvement iresuch a conspir- acy, and denying ever knowing or meeting, ee Harvey Oswald. I al.go ran a control , etatement. Shaw turned out to be heavily stressed throughout. ? This was not particularly surprising, The. elan had!been accused of conspiring to murder the President of the United giates Old wae being interViewed about it befere', :eleeisior,i cameras. He would have td ri a pretty cool customer. not to show,' .i lot of stress, even if ne, were telling the Oomplcte, truth. Hndnt that both Garrison and Shaw u.owed ?tress was not air encouraging development. Of course, both men could be lying. Garrison might have found some valid evidence linking Shaw to the assassi- nation and then, in the time-honored tradi- tion or prosecutors, invented the rest of his case. But Shaw's stress could easily be the result of his predicament, and Garrison's might also be the result of some outside issue. The situation was ambiguous. I ran the testimony of Lee Odom. Odom, a Dallas blisinessinan, was attempting to explain the mysterious coincidence .of the post office box numbers. It seems that the Dallas post office box number 11906 appeared in the notebOoks of both Clay Shaw and Lee Harvey Oswald. In his tes- timony, Odom stated that he could not account for the number appeearing in Oswald's notebook, he knew how it got into Shaw's. It was Odom's box number, and he had given it to Shaw, whom he'd met by chance on a business trip to New Orleans. The PSE showed hard stress dur- ing his statement, No unrelated control statement was available for me to run for comparison. This didn't really clear things up. There were several obvious alternative explana- tions for Oclom'S stress. For example, there 30 had been a number of rather unsavory State of Illinois, ran ballistic tests en belllet allegations in the press about Clay Shaw,' fragments found in the presidential Itinqii unrelated to the Garrison charges! Odom sine, and on the intael bullet found by may have felt extremely uncomfortable linson. Nicol testified that both the intact: about linking himself to this man in anyway. bullet and the bullet' fregmente had been The coincidence of the box numbers fired by the Mannlicher-Ceircaney:Fle, too: t 'seemed very SUSPICIOUS, but Bob Smith of was apparently telling the truth.' ' the Committee had pointed out to rn'e that ,Deputy Constable SeymOur WeitaMari 91,f both Shaw's and?Osviald's notebookl were the Dallas police claimed that h4'.rdu'act:' 'filled with numbers, so the chance of such 'Oswald's Mannlicher,Cartano ortl16,e a coincidence was not that remote. -11loor ef the Texas School B4OokDeQ*Ositcey." . ? Howe.ver. on the day.ef thfJ ASS*:1S.-inalferP; At this point I began to wonder if the tele vision camera was the "outside issue" in lei had told th6.prItAs. that INnIle I10.4110 a eyery case. Perhaps just being on television was a German f\Auser. he signed an affidavit, to that effectillut an, will so thoroughly rattle the averege person that, lying or not, he!is going to show stress the CBS tapes he testified that he had been. on the PSE. I Check0c1 this eutrbY recording mistakee about that point. that it hail really and charting a number of people on tele. been Oswald's rifle. The PSE showed con- vision programs?public ollicials?, men ift siderable stress in his statements the street. even witnesses to a particularly Patrol an Gerald L. Hill testified that he gruesome accident, 'Theme was occasional found three spent bullet hulls or the floor stress, but it never reached' tile high level beneath the window from which the fatal I was finding in the assaesination tapes. shots allegedly were fired. The PSE showed I also re3alled something Oise which put hard stress in his statements. my mind to r'st Qn this point: thcePSE had been used,to analyze tire statements of con- testants on the teloVisitan Iplograrh To Ted; Oswald to the assassination. The PSE sub- The Truth, and identified "the teal Mr. So. stantiated the testimony that Oswald owned and-so" with an accuracy bf better than 94 a rifle and that the evidence supplied to percent. The problem ObviOtisly was not the a ballistics expert indicated this rifle was television camera. the murder weapon. However, the PSE did I ran the testimony of William Gurvich on not substantiate the controversial claims of the PSE. Gurvich had been Oarrison's chief Dallas police regarding Ilse discovery of aide in the investigation of Clay Shaw until this evidence. he resigned, charging Garrison with wrong- ? The hospital employee was apparently doing. He said, "The truth at I see it is that telling the ,truth when he recounted finding Mr. Shaw should neve r have been arrested.", the bullet on a stretcher at Parkland Hospi- ? He was asked if Garrison had known of cer- tat, but many critics have charged that the ? lain illegal and unethical methods Gurvich bullet had been deliberately planted there. had alleged were being used by Garrison's 'This is the famous "single bullet" which the staff. He answered, "Yeah, pi) course he did. Warren Report says passed through the He ordered it." There was no stress in Mr. bodies of both the President and Governor Gurvich's statements. The PSE showed that 'Connally, and then lodged in Connally's he believed what he 'was saying. , wrest. Several researchers have tried to repeat this, firing the same type of bullet Obviously I did not have enough tes- into the wrist of a cadaver. The bullets never timony from a large enough number of wit- remained perfectly intatt, as the one found nesses to create a detailed picture of the on the stretcher; they became twisted lumps Garrison-Shaw affair, but it seems probable of lead and copper. that, at the very least, Garrison did not have The second link between Oewald and the much of a case against Shaw (a view later assassination is the Charge that he killed held by a New Orleans jury) and likely that Officer Tippitt, a Dallas policeman; while Shaw was completely innocent of complic- fleeing from the scene of the first shooting. ity in the assassination. The lesson of this A number of eyewitnesses have testified episode is twofold. First, stress in any one that they saw O'swald shoot Tippitt, and one person's testimony does not prove decep- of them, Domingo Benavides, was inter- lion. Second, given enough testimony by viewed on the CBS tapes. He was asked djfferent Witnesses, the PSE Can arrive at if there was any doubt in his mind that the truth.' Oswald was the man he saw shoot Tiepin. The first person I ran on the PSE who had He replied, "No., sir, there was no doubt any direct knowledge of the assassination at all." There was absolutely no stress in was Oswald's widow, Marina. Unfortu- his statement. He was telling the truth. nately, only one of her statements was on The killing of Officer Tippitt by Oswald the CBS tapes?that Oswald had Owned a has fueled the fires of controversy over the rifle. The PSE said she was telling the truth. Warren Report. Tippitt was far from his usual. The rifle had been one of the major points beat when he was shot. Some witnesses of controversy raised by critics of the War- have alleged that Tipoitt and Oswald were ren Report. The debate centered on two seen together in Jack Ruby's nightclub. points: whether the Mannlicher-Carcano They theorize that the three men were part alreged to have belonged to Oswald was of an assassination conspiracy., and that the rifle found by the Dallas police in the Tippitt had been sent to silence Oswald, Texas School Book Deposildry, end whether but had been beaten to the draw. that particular gun could haVe been the ritur- The Dallas police radio dispatcher, der weapon. ' Officer Murray Jackson, was asked if h bn the tapes, :Darrell C.j Torrillrfsen, an thought Tippitt knew Oswald. "No," he employee of Parkland HeOpital, testified replied, "I don't think he knew Oswald." Did that he had found a rifle bttllOt on a OtrurChni- Iticksott khow Ceeenlii? "No,' lieeteierest- ' which he believed bed carried. Governor Jackson, didn't either.' he PSE E..hcroied Connally. There was no stress in his state- heavy stress in both statements. ment. The PSE said he was elling kilo truth. Perhaps the greatest source of con- Dr. Joseph D. Nicol, Suberintendent of troyerny over the WanCn Report in it's claim the. Bureau of Criminal Investigation tor the that alt.the stiot,.,,..,,re fired by or,: i,unman. The rifle was one of the principal points used by the Warren Commission to link Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Some eyowitriosses!nlaim to hive heard The President's. body was flown to the back of the President's head was an shots and seen gun, moke in the 'area of ! Washington, D.C. There, approximately entry wound? "There is absolutely no doubt, " a low hillock ahead and to the right of the ! eight hours after the shooting, an autopsy sir. Again stress, but again moderate. presidential motorcade. This hillock has was performed at Bethesda Naval Hospital.. Altogether, how many wounds Were comre to be known as "the grassy knoll. Because of the tracheostomy, the nature of there? "There were two wounds of entrance One of these witnesses was a railroad ? the neck wound could no longer be ob-, and two of exit." At this point the stress be- came hard. And where were the entry wounds lo- cated? "Posteriorly, one low in the right posterior scalp, and one in the base of the ' neck on the right." Hard stress again. Could he'be absolutely certain that what he said was an entry' wound was,, in fact, that. "Yes, indeed we can." Hard stress. The interview with Humes was one of the longest and most detailed on the CBS tapes, and I charted most of ir with/the PSE. It was clear to me that he be!leyed much of what he Was saying, but the fr. ! e'ient flick- erings of moderate stress and the'e..easion- al flashes of hard stress. suggested ilezrhe wasn't nearly as confident of his testimuey as he claimed to be. As Dr. Perry had pointed out, sometimes it's not easy to tell an entry wound from an exit wound. , The interviewer asked him one good "hot- torn line" question: "Do you have any different conclusion, any different ideas. any different thoughts worker named S.14 Holland, s,vho observed secved and was, at first, overlooked. Later, the scene from an overpass near the knoll, after consulting the Dallas doctors, the The PSE confirmed that he thought he had Bethesda pathologists cdncluded that it seen a puff of smoke 'on the knoll, but it was an exit wound. The autopsy report could not support his claim that he had stated that there were two entry wounds, heard a shot from that direction. ; one low in the rear scalp and one at the Another witness, Charles Brehm, was' right base of the neck; and two exit wounds, quoted by Mark Lane as having said that the throat wound and a large irregular he had seen a portion of the President's ' wound on the right side of the head. skull flying back over the left rear end of , The confusion was compounded when ? the limousine. Lane offered this as evidence two FBI agents present at the autopsy ; of a shot from the grassy knoll. On the CBS isreported that a wound had been found in ; tapes. Brehm stated heatedly that he had , the President's back, and that no cone- been quoted out of context, and emphatic- sponding exit wound had been located.. ally denied that any shots had come from ' Diagrams made during the autopsy seemed the knoll. Despite his emotional state, there to confirm this, showing the lower of the was almost no stress in this statement. two entrywounds to be below the shoulders, Officer Jacks of the Dallas police, who not at the base of the neck. What became ? was riding in the limousine of Vice- of the bullet? The agents reported that President Johnson, denied that any of the , Bethesda doctors thought the bullet had . shots had come from the direction of the dropped from the wound when the Dallas ? grassy knoll. The PSE turned up a fair de- ' doctors attempted external heart massage. gree of stress. But this was the shot that the CommiSsion. iThree witnesses, Mrs. Caroline Walther, , claimed had passed through Kennedy and ,I now, after seeing (the autopsy photographs) , . Arnold Rowland and Howard Brennan, : 'struck Governor Connally. again, than you had at that time?" - claimed to have seen gunmen in the win- ' X-rays and color photographs of the au- "No," replied Captain Humes, "we think ; dovvs of the Texas School?Book Depository ' topsy were made. The brain was removed 'they bear up very well, and very ?closely, ; building. Mrs. Walther said she saw two : from the bodyeBrain and skin tissue slides ' our testimony before the Warren Commis- men, one armed with a rifle, the second Were prepared for microscopic examine.- Sion." with a shorter gun. Rowland told the Warren' ' tion. Remarkably, the Warren Commission,The stress was hard. Commission he had seen two men, one an' ! never asked to see any of this evidence, Arlen Specter, one of the Warren Comrriis- ; elderly Negro, in the window Oswald is 'relying instead solely on the testimony of sion's principal investigators, also spoke on ! alleged to have fired from, but on the CBS' , Captain James J. Humes, one of the the CBS tapes. He said that the case against tapes he claimed he had seen an armed ? pathologists who conducted the autopsy. Oswald fitted together very well, and that , man at a different window. The Commission . ' Even more incredible is the disappearance seldom could one find among actual crim- : relied hciavily'on the testimony of Brennan, ; ' of the brain, the slides, and some of the inal convictions a case equally persuasive. , who claimed to have seen a gunman in the . photographs, which were alleged to have I 'He added that there was no foundation for . "Oswald window" actually firing the last of been turned over to the National Archives 'the charge that the CommisSion had been 'the shots. The PSE showed hard stress in : ' by the Bethesda Naval Hospital. , formed to whitewash the facts. . the testimony of all three witnqsses. Both Dr. Perry and Captain Humes were ' The PSE said he was telling the truth. The PSE analysis of the eyewitnesses' ? . interviewed on the CBS tapes. Perry was John McCloy, a member of the Warren testimony regarding the source of the shots!! asked about the throat wound he'd seen ! Commission, said much the same thing, , is ambiguous. It supports Holland's claim ! , when the Prsident was brought to Parkland i and added that he had seen no credible . to have seen a puff of smoke on the knoll, ' Hospital. His answer seemed ' evasive: He . evidence to contradict the findings of the and Brehm's denial that any shots came neither confirmed nor denied that he had Commission. The PSE backed him up on from that direction, and it raises serious ; thought it w?as an entty wound, talking in- this, but it failed to do so when, speaking ,doubts about all other claims and counter- , stead about the difficulty of making such of the Warren Report, he said, "There was claims, This contradiction seems to result ' ' a determination and the fact that his atten- nothing fraudulent about it." Here the PSE . . . ; from the notorious unreliability of eyewit- ! lion had boon devoted to saving the Piest- ' nesses, perhaps by a fair I I dent's life. Then the interviewer asked him i directly whether he had thought at the time ' amount of fabrication. Deception, if it is ; ' . ? . . . showed hard stress. If Specter and McCloy were as confiden as the PSE shows them to be in the truthful present here, may have been motivated .thal it was on entry wound. Actually, I clidn I ness of the Warren Report, what could be merely by a desire for attention. Or the.r really give it much thought." he replied. Ho fraudulent about it? Perhaps the Snipping ? e ; may have been darker reasons, showed hard stress on the PSE. Unfortu- , off of a few loose ends, the suppression There is, however, other evidence and ! nately, he made no other definite statement, of a few pieces of inconvenient evidence testimony thatcould shed son no th,-.;ht on the :about the nature of the wound, which conflicted with a version of events existence, number and location of asses- j The interview with Captain Humes was ' they believed to be essentially true. !sins other than Oswald. This bring:; us to more informative. Just before the interview,?, The one man who could be expected to ,perhaps the most dubiow; and controversial in 1967, Humes had re-examined the aUtop- have the most informed opinion regarding element in the Warn?n Commission's ver- Isy photographs and X-rays, and he dis- the work of the Warren Commission is' ,nion of the event? the autopsy cussed them at length on the CBS tapes. former Chief Justice Earl Warren himself. ; Within minutes after the shooting, Ken- The diagrarris drawn during the autopsy,' He had declined to be interviewed on the nedy had been rushed to th emergency he said, had not been intended to precisely CBS program in 1967, but he did appea ' e room at Parkland Hospital, where. Dr. Mal-' . represent the location of the wounds. How- on television in May, 1972, in an interview colm Perry tried to save his life. The physi- ever, he now produced a sketch which, he which was part of a series calledThe Bran Ir cian saw that the President had suffered said, did ;epresent these locations accu- 'deis Television Recollections. Bob Smith o .rately. The interviewer asked, Your re- ?,' a massive head wound and a smaller wound , in the throat. Perry performed a tracheos- examination of the photographs verify that tomy, cutting throUtiN the throat wound in the wounds were as shown here?" arl fitiOrririt to ?pea a breathing passage. "Yes, slr," he rdplied, Na girde70, Afterward, when hope for the President had WOW thoro any wounds other than one been abandoned, Perry met with the press at the base of the neck and one up in the , and declared that the wound in the front skull? "No, sir, there were not." Moderate of the neck had been an entry wound. stress, not enough to suggest deception. .31 Was there any doubt that the wound at the Committee provided me with the tape The interview was an hour long, but the Kennedy assassination and the Warren Corrirdiesien bame tip onIV hhod, The itit@Fr- viuwer, Abikm Sachar, Chancellor of Bran- deis University, was friendly and deferen- tial. I charted some of Warren's remarks unrelated to the assassination and found that he was generally unstressed. Sacha __Approved-For-Release-200-1108/07 : CIA-RDP-7-7-00432R600-1-00190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 aised the subject of the Commission bliquely, and Warren volunteered several rather lengthy statements about it Warren said that immediately after the as- sassination there were two theories, one that ? Khrushchev and Castro were behind the ? killing, the other that a group of right-wing Texas oilmen were responsible. He said: "We explored both of those theories for ten months and found no evidence that either of them was involved in it:" The PSE showed hard stress. . He continued: " ... we found no evidence of any kind that there was any conspiracy." Again there was stress, and particularly hard stress on the words no evidence." "I have read everything," said Justice Warren, "that has come to my notice in the press, and I read some of the documents" that have criticized the Commission very severely, but I have never found that they have discovered any evidence of any kind that we didn't discover and use in determin- ing the case as we did." Hard stress once again. The word "never" was a perfectly "trimmed hedge." "I have found nothing since that time," he continued, "to change my view, nor have I heard of anything that has changed the view of any member of the commission since that time." The stress was hard. As I had now come to expect, the word "nothing" seemed a particularly beautiful example of stress. Another word seemed to show even more stress: "member." Could he have been thinking of someone in particular? On Janu- ary 19, 1970, Senator Richard B. Russell, a member of the Warren Commission, re- vealed that he had never believed that Lee Harvey Oswald acted alone. I had charted the last of the assassination tapes. Of course, these few thousand feet of recording tape are only a small fraction of the relevant testimony recorded and stored away in the archives of television news departments. There is, for 'example, Lee Harvey Oswald, as he was led through the Dallas police station, denying that he had killed the President. There are state- ments by Marina Oswald, Jack Ruby and by others. I pave no doubt that with these- tapes, a Psychological Stress Evaluator, and time to work on them, a very detailed picture of the assassination of John F. Kennedy could be reconstructed, a picture that might even reveal the identities of the assassins and their co-conspirators. I hope that sooner or later someone does this. I have gone as far as the private resources of a free-lance writer permit. What, given the.sample of testimony I have processed with the PSE, can I say about the assassination? We should first examine the testimony in which no stress was found, since it is almost certain that these people were telling the truth as they saw it. This strongly.suggests the following: 1. Oswald owned a rifle. ? 2. A bullet fired from that rifle was found on Governor Connally's stretcher at Park- land Hospital. 3. Bullet fragments alleged tO have been found in the presidential limousine also came from Oswald's rifle. 4. At least one eyewitness believes he saw gunsmoke on the grassy knoll, but another is equally certain no shots came from that direction. 5. 'Oswald shot and killed Officer Tippitt. 6. At least one member of the Warren Commission and one member of the Com- mission's staff really believe in the validity of the Warren Report. the very sinister implications of the very : existence of deception among policemen; ;government officials and Commission ; members. The question remains; drd such ! deceptien exist or was the stress found by : the PSE the result,?in every case, (Wan out- , side issue? 7. Jim Garrison had little or no case ? Obviously, whenoVer sireSs Is fund by against Clay Shaw. the PSE and cannot be cross-checked by Almost all of this tends to support, in one a structured interrogation, SOMe prObability way or another, the Warren Report. tint now must be accepted that thlt stress is:caused let's look at the testimony that is called Into. by an outside issue. Wo study has yerbeen question by the PSE: . conducted to establish what this probability 1. The claim that Oswald's rifle 'was might be, but let us pick, for the', stake of found in the Texas School Book Depository.: pdiscussion, a figure that may seem ridicu- 2. The claim that bullet hulls matching , lously high-70 percent. In other Words, we Oswald's rifle were found in the same place. 3. The claim that one gunman was seen in the "Oswald window" of the Dallas Book Depository. 4. The claim that two gunmen were seen in this window. 5. The claim that a gunman was seen in a different window of that building, 6. Another claim that no.shots came from the grassy knoll, and a claim by the witness who saw the gunsmoke oh the knoll that he also heard a shot from that direction. 7. A claim by a Dallas policeman that neither he nor Officer Tippitt knew Oswald. 8. The claim by the pathologist?the Warren Commission's only source of infor- mation about the autopsy----that the X-rays and autopsy photographs support his tes- timony before the Commission. 9. The claim by a member of the Warren, Commission that there was nothing fraudu- lent about the Warren Report. 10. The claim by Earl Warren that the Commission found no evidence of a con- spiracy; that none of the Warren Report's critics over found anything the Commission are assuming that 70 percent of the times the PSE finds stress in testimony, it results from soriething other thah lying. Wm, let's ignore the deception indicated iri the testimony of the eyewitnesses; even if present, it might have resulted from mere desire for attention. That leaves eight "in- siders" who have demonstrated stress when making statements supporting the Warren Report: the Dallas policemen Hill, Jacks; Jackson and Weitzman; the medical exam- iner, Captain Humes; Commission staffer Wesley Liebler; Commission member John McCloy; former Chief Justice Earl Warren. Assuming that there is a 70 percent chance that any single instance of stress is "outside issue," what is the probability that all eight instances are due to factors other than deception? Elementary proba- bility theory tells us that ft is .seven-tenths raised to the eighth power, or approximately 6 percent. ? ' ? ' In other words, even making some fairly conservative assumptions, there is a 94 per- cent chance that at least one of these eight men is lying. ' hacl missed; that he had found nothing since My own personal opinibn? I don't know. the publication of the Report to change his 11 remember the young man with the ring. view; and that he knew of no Commission He said he was wearing it, and he was, member who had ever changed his mind , but tie stressed. He stressed not because about their conclusions. I he was lying, but because there was some- thing about that .ring that really bothered If we 'accept that each instance of stress him, something he didn't Want the world to 'indicates deception, an interesting and ' know. Perhaps that is also true of these men unexpected possibility emerges: ! who, in one way or another, learned some part of the truth about the assassination of John F. Kennedy. ? 'I suppose I'M not absdlutely sure even of that. When I first met Bob Smith of the Committee, I asked him if there was any one thing the government could do to clear up the mystery. Yes, he replied, the one thing that would help More tharp anything 'else would be to make aVAilable the phy cal evidence ? the detailed FE3I lab r ports, the x-rays and autopsy photograph the microscopic slides, ;the blood:1,1am( clothing, yes, even the Firesiclunt's brti wherever it has been hidden. These things, he said, would go far toward anSwering the questions about what actually happened that day in Dallas. Maybe they would even confirm the Warren Repo& So when I say I'm not absolutely certaie these men are conceatihg .sOrnething,:l mean I can think ofsom6thin9 that could conceivably;chango,Ty mind. That is, If the government would open all its flies on this matter to us and we are ,,%/ron'9 Oswald was involved in some way in the assassination. if only as a fall guy. Some of the Dallas police force may have been in- volved, planted the evidence that impli- cated Oswald, and covered up the fact that. there was a conspiracy. The medical exam- iner believed his own testimony to the War- ren Canmission, but later had doubts. The Commission found evidence of a conspir- acy but didn't believe it, so they covered it, up in order to present a tidy package to the public. Later, at least one memb'er of the Commission changed his mind, but since he didn't knbw what really did hap- pen, he decided to say nothing. So there was conspiracy in Dallas, and in Washing- ton nothing worse than blundering. I could say all this with certainty if I knew that stress always equals deception. Unfor- tunately, I do not know that. But the PSE analysis of the assassination tapes has generated a staggering amount:of fresh doubt regarding the Warren Report. This doubt rises not only from specifio points ?we, the ocopie wao lea ypliatpTh tia 'the PSE has called Into question, but from. believe we haven't yet hoard the full account of (ho events of Novembef 22, 1963. 32 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R00010019.0001-6' WASHINGTON POST 3 June 1973 This is ?tie of a series of occasional articles on the world's energy problems. ? , By David B. Ottaway and Ronald KoVen Washinston Post Staff Writers After having pressed during the past' ' year for a common front with Western. Europe and JaAn to meet the current energy crisis, the United States nowl. appears to have growing doubts that" such an approach is feasible or desir- With less than 10 days to go before.. ,a? critical meeting of the major Oil- consuming nations .in Paris, the U.S. government has so far failed to do , more than dratv up a restricted list ofi, .areas in'which some cooperation might ? be possible. On the key issues of dealing with , ,spiraling oil prices and of interna-.; :tonal sharing of the evailable? oil in -times of emergency, the U.S. govern enent has no concrete proposals toe, present to the conference. . ,!?,, The irony of the situation is that ' Washington, which had been stressing ' t4tte urgency of establishing a'common policy, seems to be playing for time while administration energy planners figure out where American interests: .really lie. . The upshot may well be what Under. :Secretary of State for Economic Af. 'fairs William J. Casey has called "an s? onereasing Balkabization of the -oil i '.market" as each cOuntry seeks itsi own private oil preserves. . There is a real danger that, ee.:. decisions are put off and deadlines ,for studies on both sides of the AV lantic are ,pushed back, the competi- tive scramble may come and go before: . governments have even drawn upe ?their plans for cooperation: Solutions that seemed self-evident; as recently as two months ago now. seem, under closer scrutiny, to pose as many problems as they may solve.1 The resulting internal debate among , U.S. policy planners has left the Nixon. administration with no clear policy. . Middle-level officials who once had , a clear run of U.S. oil policy have been, displaced since the energy short- age has become a pressing political' issue. White House national security adviser Henry A. Kissinger and See.; retary of the Treasury George Pe Shultz are currently grappling with, the complex issue. While the middle-level officials had relatively clear ideas, and even de- tailed proposals, about U.S. oil Pc licy, their top-level successors are only ;beginning to think the question. through as they engage in a process, of self-education. r. "We should not minimize the issues; we face in considering cooperatitte .measures" with Europe luid Japan; Under 80crutflo, fiorioy mount!), Wink , fieth, V? y, Among the questions he Ilisted were whether Wash- 'e1iilgton is ,ready to accept 33 "binding arrangements? with rEurope for sharing oil t ? im- polts in an emergency, bethether Americans are ready tto accept transatlantic petrol- eum rationing ? and whether U.S. business is ready to ishare its fuel-industry patents 'and technology with foreign ;Ina tions. A "We have not even fin- :Ished inventing the ques- tions" about dealing with .:.tthe energy , crisis, said one ?Ttop-level government , ad- .. eviser. , ? , As for earlier govern- mental consideration of 'forming .what, Walter, Levy, ipossibly the, top American private oil consultant, hat' 'called. a. "countervailing Power" to the oil-producers icartel (OPEC?the Organie lation . of Petroleum Ex-' ;porting Countries); most top U.S. oil officials have eon; ;eluded that such a "con- rob ta tion organization" !would be eouterproductive. 117 Instead, U.S. officials are ie ? vtalking at least as much; 'about how to establish co- .6perative relations with the oil-producing nations as 1,11t,ith our fellow consumers: Jong Deadline ? The Europeans are in no :better shape than the Americans. A recent ses- sion of the energy ministers of the nine-natien European Economic Community failed! to agree on a common poP ley. They set Dec. 31 as a deadline for drawing up a plan for a community oil market. At the earliest, pro- posals will be set before the Ministers in the autumn.* e Henri Simonet, the Come Mon Market's energy com- missioner, who is just fin- ishing a round of talks with 'Washington officials, con- .cluded that the Americans 'are "quite far away" from establishing a petroleum !foreign policy. "I simpose they are probably in the 'tame state as we are," he This week, the State De- partment's top oil exPert, 'James E. Akins, said that :the United States, in an of fort to avert cut-throat com- petition for exclusive oil supplies, had turned down a Saudi proposal last fall for. "special relationship, The Arnericans also asked the, tleepetititt tuit.l anitittpta0 to, shun similar . offers, he. eodded, ' The U.S. effort failed, ':.!Akins said, and "The scram4 ePle started,anYway." Ameris , an compenies .are also 1n- volved, he said. Starting, a year agp, th6 iUnited 'States twice issued' fitrgent calls at meetings- of the Organization ler Leo-, Vomid Cooperation Mid Dee, iyelopment, the 20-nation, lelub of this world's incluse Oialized nations, for the es-.: ,f,,ablisliment of close coov 4eration in petroleum policy.: `.t. Saudi Petroleum Minister Sheikh Zaki Yemeni de- emunced what he took to be. t American plan as a call, Ifor economic "war." Backipg off, American officials said that 'Yemeni had misunder- stood the most militant poe- sition expressed in America: ?an oil consumers' cartel to? deal directly with OEC?as representing *U.S. policy. Nevertheless, ' President Nixon dispatched former' 'Commerce Secretary Peter 'G.. Peterson to Japan and 'Europe as a special ambas- sador to explore prospects for policy coordination.. In testimony before Con- ' gress this week, , Deputy- 'Treasury Secretary William. E. Simon indicated -U.S. of; 'ficial reluctance to make any speedy commitments to its European and Japanese, partners. ' For examPle, on the ques- tion of emergency oil shar- ing, he said, "If we should agree to serious negotia- lions with European mem- bers of the OECD over a sharing formula, these ne- gotiations can he expected to be diffieult and pro- tracted." A major dilemma for the United States is whether I.o include American domestic petroleum reserves in ant' common oil pael. U.S. government staff studies have shown that the United States?still the world's largest oil producer,. although its production is not increasing?would prole- ably lose more oil than it would. gain in any sharing formula likely to be accepta- ble to the other industrial- ized nations. Except for the North Sea area now under development, neither Eu- rope nor Japan has any sub- etantial oil sources to share. If Arab MI to the West were cut iit, the United States could therefore he huh to (4011.1161de u tilsproportioratte Moro ofovo ,eryone's oil rations. American reluctance may 'stem from a growing aware- ness that the United States Approved For Releas_e 2001/08/07 : CIA-RDP77-00432R0001001 is in the best pesition!to do' It alone in any oil scramble. Not only does it have itd own domestic oil production and the 'as ? yet untapped, Alaskan deposits, it Meet haS it- preponderant Pdpitiori. with, the top three fe;i1-ex-' porting. nations?Saudi Ara- bite ,Iran and Venefuela. American companies gee the major producers in Saudi Arabia and Venezuela and share the wealth with . the 'British in Iran. Washington exercises the preponderant' foreign political influence in 'all three. The United States is eon- ,sidering its own plans lee- Stockpiling a 90-day oil sure .ply against an emergency, .at? an estimated cost of about $3 billion. Stockpiling is one, of the issues that Washing- ten says it is ready to dise 'cuss with OECD nationi,. most of which alreadY have 'their .own stockpiling plans. '? ., The other major topic' at 'the forthcoming OECD oil committee meeting in mid.' ,Jtme is expected to be joint' plane for international coop- ' eration in research and de- velopment of alternatives to :oil. But U.S. officials see ere -way of coming to grips with what is perhaps the most in-; 'tractable issue of all?the : ever-rising price of oil. Inde- pendent American oil corn-, panics are in the forefront. ? of the scramble to sew up oil at almost any price. In the past three years,; the price of oil eas doubled,' and it may aim-e than dou- ble again to $10 a barrel or more by 1980. But in a world sellers' market, U.S. and Eu- ropean officials doubt that prices can be held . down evere if hiddingC among con- sumers is eliminated. None 'seriously ?believes that an, ?oileconsumers organization could stand up to the steady OPEC demands for ever higher prices. In 1980?when most esti- mates are that the United States will be importing about half of a total oil con- sumption of around 26 mil- lion barrels a 'day?it is cal ciliated that every one.rinilar, inereasC in the price of a barrel of oil would add $7 billion to America's foreign 011 bill. Deigns' Heeretury flittl. tide, ell lie ports aro eapeeted to eetwo' about 33 per cep!. of our In tat eonsumptiou .Slate's Akins suggest:f1 tru4 week that this Wein !Tech 90001-6 ^ Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 50 per cent even befcire 1980. ?by 1976. According to Si- mons, U.S. payments for for- !eign oil should reach about $7 billion this year, $10 bil- lion in 1975 and $17 billion by 1980. ; Nor do U.S. planners see precisely how the oil con- suming nations, widely ? di- vergent in their interests and their internal economic Organizations, can mesh', their policies. Some coun- tries, like France and Italy,': ,have government-directed' tell industries, while others,..1 like the United States, have, thus far largely left thei making of oil policy to pri- vate companies. e Even the interests of pri- vate companies have often ?been widely divergent. Oil- producers like Iraq and Iran- ; have been vety successful in playing the members of oil- company consortiums off ? against each other. In Libya, where American companies': now face the threat of na- tionalization, the big, estah-. lished oil companies like ?Exxon fear that the ,small U.S. independent companies will cave in and make sepa- irate deals - The European nations, suspicious of the motives be- hind American calls for co- , operation, point out that the Anglo-American companies. dominate the international. oil industry. So long as there was plenty of oil to goS 'around, this was tolerable to the Europeans. With short- . nges looming, however, they inevitably suspect that the major companies will be forced to supply their own countries first in any emer- gency. Jean Leclerc', a Common. Market energy expert, re- cently remarked, "Any car- tel we formed would he un- der American controls." Such distrust is mutual. One ?American official said, "The "Europeans don't want us to make special relationships, but they don't want to fore- go any special relationships of their own." Atkins test i fled, 'The Eu- ropeans don't like seeing us in the market competing for the avellnliie energy. They wanted us to find more sources at home." U.S. , officials oft en rite the French deals to buy pe- trine= directly from Iraq behind the back of the West- ern consm tium to which they belonged after most Western oil holdings were expropriated last year. Inside the Common Mar- ket, the French accuse .13rit- ain, West Germany and the Netherlands of wanting to ? come to terms with the , ideas of jnyest ine their sUnited teat en twee borm,p tuna hi Ailieelim. d there is an agreed European e There has also been a.. community oil 'policy. The multiplication of statements - French favor establishment that Washington wants coop- of a centralized community eration, not confrontation, 54 petroleum marketing orga-' nization, a - supranational' ,agency that would regulate exports and imports and , !perhaps make direct deals', 'with the oil-producing na- tions. , Such an organization.' could severely restrict the freedom of action of such ,major companies as British: ?Petroleum and Royal Dutch 'Shell and could also dis- place the positions of the major American firms in. the European market. One of Europe's worries, Commissioner Simonet said, .is that if there is no control of exports from the Com- mon Market, U.S. companies will buy up Middle East crude oil imputed for refin- ing on the Continent. 1-Te said that there are already large American gasoline pm 'bases in France, Italy . and the Netherlands. Distance From Israel ? Perhaps the overriding European objection to tying themselves up to the Ameri- cans is U.S. hacking for Is- rael in the Middle East Britain, France and Italy .have grown more distant from Israel in their drive ? to 'secure assured sources of ! Arab oil. They argue that any Arab oil embargo would more likely be aimed against the United States than against Europe or .Ja- pan. Therefore, any oil-sharing alliance under which a boy- cott of one is seen as a boy- cott of all would serve pri: manly as an oil insurance policy for the United States. . The Japanese seem to be the only ones who know ex- actly what they want and are going all-out to get. it. They have told the Arebs that Japan rejcas a constim.: era' organization. While pro- fessing the need for cooper- ation among the industrial oil consumers, the Japanese, have been feverishly staking' out their own exchreloo sources up and down the Persian Gulf and elsewhereee Although no (Jeer ei.J.S,s policy line has been set out, there has been a definite change in tone ,toward the 'oil-producers, especially Sa- udi Arabia, which is widely. regarded as holding the key to an adequate U.S. oil sup- ply in the coming decade. - ? Significantly, the United: States has announced, over, strenuous Israeli objections, ? its willingness to sell the ? Saudis the ? most advanced war planes available to Is- rael. There has been a multipli. cation of welconiing official statements about Saudi With the Arab all-producers.? e. In private conversation,. U.S. officials now place new stress on the need for ."understanding" of the Arab,: nations' needs and psychol-e ogy. There is talk of a new kind of foreign-aid apnroacht ? for countries that do not. *need U.S. money grants but do need American technole, ,Ogy and know-how, to de- velop their societies. . Although U.S. officials, ?still say for the record that., "special relationships" with the producing ,nations may 2 be destructive of consumer- nation unity, nevertheless WASHINGTOM MST 7 JUil 1973. , '! there is inefeisind evidence ' that the Americans are now7 quietly exploring such rela- \Hons. Akins testified thee". the United States had told.- the Saudis they can get eq. ,erything they want frorn th iUnited Sates "without a for!es:: Mal special relationship." ??,?e In a hint that Washingtoriq .1S already thinking beyond ? focusing its efforts on coo* eration with Europe and tlat,i pan, Deputy Secretary Sfel ? -iet? mon said that, if those arease; will not agree to eschew spelt' cial deals with the produc- ers, then, "Obviously, ?if thee , world disagrees, we 'will. .heve to revise our plans." ? .; th Ti-marre: .117orchvide Shoirt ttap..e By Ronald Koven and David 13. Ottaway Washineton Post Staff Writers ,` This is one of a series of ,occasional articles on the . ?world's energy problems. While Congress debates who is responsible for the closing of 2,000 gas stations across the land and farmers cry that there is not enough fuel to, move their tractors this summer, U.S. policy ?planners are worrying that the worst is yet to come?an absolute worldwide shortage of oil. No one disputes that there is an abundance of oil in the ground to meet the indus- trial world's enormous and growing appetite for energy ?at least foe- a while. , The nagging question is whether those who have the oil will produce it, mainly to .'please the United States, whose wasteful ways the world is coming to resent. There are growing indica- . e. lions that the answer might well be "no." In the words of Deputy Treasury Secretary William E. Simon, chairman of the Nixon administration's Oil Policy Committee, "The Producing countries will Produce their reserves, or Conserve them, to the extent that they consider it to their economic and political ad- 'yantage to do so. The United Stales, whose 6 per cent of the world's population now consumes 33 Per cent of its energy, suddenly emerging As the leading importer of oil, des, tobilleitte the iiitt?Pnationnt pet rtity u in ii a As James E. Akins, the State Department's top en- ergy specialist testified to the Senate ,Foreign Bela- lions Committee recently, "The United States alone, through its increased im- ports, is creating a new de- ronnd for oil each year equivalent to the entire' production of Algeria (1.1* million barrels a (lay) or ap- proximately half that of Libya, or Nigeria." America's traditional for- eign oil providers?Canada .and Venezuela?have deter- 'mined that their reserves are relatively limited. They are turning their backs on America's calls 'for help with its energy problem to concentrate on their own na- tional interests. ? Other countries which ' earlier looked as if they might be a big 'help, such as ' Indonesia and Nigeria, DOW appear small factors in the ,chaneing world oil supply situation. -The only country capable ? of meeting?the world's grow- ing needs is Saudi Arabia, which sits on at least a quar- ter of the earth's' proven oil reserves, hut has only 4.5 Million souls to provide for. Not only is the economic incentive for the Saudis to expand their production limited (they now hold more than $3 billion in monetary reserves), hut they are corn- ing tinder increasing politi- cal pressure from their Arab brothers to refrain from bailing the Americans out. "When we talk about one oil needs, we're talking ? about one country?Saudi Arabia," said Rep. John C. Culver (D-Iowa), chairman of the House Foreign Eco- nomic Policy Subcommittee. ? The implicatiohe of this rui; frtht are nine to let tolosii mitt141111IC account he ton U.S. officials, But Washineton ienrieed a Saudi Invitation last fall to ' eetahlish a special nit re/a- ApproVed-Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100160001-8' tionship. and the In i Is no longer open. After a decade during Nvit oil producing capacity exceeded the need by about no per cent, world supply and lemand is now in 'Joe., .tieally perfect balance. If one producer, even an only moderately important one like Libya (2.2 million bar- rels a (lay), turns off its oil - tap, a world shortage will be upon us. Jo 1972, the world prod- 'wed 52.9 million barrels a 'clay and it consumed 52.7 million barrels, leaving , practically nothing for in- ventories. Until the turn of the dec- ade. America's profligate ? ways were no real problem. : Until 1970, America prod- uced as much oil as it con-! ? sumed?a policy David Free- man. head of the Ford Foun- dation's energy policy re- search project, has de- scribed as "Drain America .First." Now, in a world of shert-: age. there may be a theoreti- cal alternative to oil in the mountains ? of coal in this ' .country which would he enough to cover U.S. energy needs for 500 years. But American society has become addicted to oil and gas, which account for more than three quarters of all U.S. current energy con- sumption. to ? maintain its chosen lifestyle of cleaner. industrial smokestacks and' vehicles powered by the in- ternal combustion engine. It is hard to conceive a shift back to the age of coal. which for a start Would , force abandonment of our self-imposed clean-air stand- ards. In effect, while waiting for , the tardy atom and other Buck Rogers alterna- tives to start producing much of 'our energy in the mid-1980s, the United States Is stuck on oil (already 44 per cent of all U.S. energy ? consumption and rising) and must count on foreigners to supply it. There is no spare produc- ing capacity in the United Stales. Alaskan oil, when it is finally extricated from its current judicial quagmire, will do little more than make up for the decline in the lower 48 states' prod- uction, according to the Na- tional Petroleum 'Council. Last year, 'the United States imported 27 per cent of the oil it used and ex- pects to bring in 33 to 35 per cent this year, according to . official forecasts. By 1980, most. estimates Industry, university and gov- ernment?ale that the United States will need to . ifiiii6N1 half or more tit its total needs. one respected view is that this may happen as early as 1976. The usual estimates are ' that the United Slates im- ported about 15 per rent of Its petroritiin products from the unstable Arab world and ' Iran in 1972-2.1 per cent of ! its total energy consump- tion. ? But that statistic vastly ,understates the importance of Middle Eastern imports, since at least a third of pe- troleum refined in the Car- ibbean for the U.S. market originates in the Middle . East. but is classified as 'Latin American oil. A more accurate view can ? he had from a look at the percentage of unrefined oil imported directly into the United States. Using the U.S. Bureau of Mine's fig- ures, Arab and Persian crude oil represented 28.6 , per cent of U.S. imports last year. The Arab world and. Iran already produce 42 per cent ; of the world's 'oil, and they hold two-thirds of the 670 billion barrels of proven re- serves. The trend is toward ever-increasing dependency on Middle East; oil, at least through 1980 or ? 1985. In seven, years, according to. conserv a t ire- estimates by the U.S. government, a third to a half of total U.S. oil im- ports will he from the Arab world and Iran. It is estimated that one ? out of five barrels of oil then used in the United States will be coming from Saudi Arabia alone. The. Saudis are expected to pro- vide three-quarters of the growth in Middle East pe- troleum production from ?here on in. , A country by country analysis shows there are no viable alternatives to Arab , oil. Iran, the only non-Arab source in the Middle East, has been playing on U.S. , fears to present itself as a potential replacement. But the shah's own announced plans are that Iran will im- : pose a plateau on prod- uction in 1977 so as not to deplete his country's dwind-? Jog reserves too fast. Iran is now producing about, 5 million barrels a day and will peak out at 8 to , 9 million barrels. Most of 'that oil is already committed to Western Europe and .Ja- pan and could not he shifted . to the United States in a 4"4r1sis,:ex.eePt' it the' extiense, . of . America's allies, :" ? ? ; Iraq is ,the Arab World's, sleeper?its vastly underesti, mated reierveS are: second;; only ? to Saudi Arabia's. But the (Mord of Iraq's ? rill im; dustry highly uncertain.:' Some oil leconeixiists believe that eout4ey could step up: production; front its current stagnating! 1.5 million barrels: a day to ag nitich as 5 3$ ?Approved -For-Release-2004/08107-4 CIA-RDP-77--00432RG0 GI-Oal_90001,6. _ - The 'political instability that, has traditionally been a ma- jor obstacle to expansion of Iraqi production, however,' raises Orions question& about. getting much oil from , there. 1 ? , . Otitside[ the .Arab world, i Nigeria isithe only non.Corn.?:`, Intuits, et untry where oil ,productim is now Mmes.... ing significantly, with expcc-,,': tations of exiSals of 2,4 mil- lion ; barrels daily by 1975..'. The :,West African country.?: has ;suddenly become ex-'. trernely important to the: United States,,This however,: IS a jmssing phase. America's,. voluminous needs will ? out,' strip: the limited capacity of Nigeria's fields, Some of the, older ones are already declin- ing in production: - ? ; Many , energy. planners have been Palled by mirages of great oil bonanzas outside::: the Middle East, especially in ? the seabed in pines as; near to, home as the Long Island': . and New Jersey' coasts and as, far away, as the China Sea.,; No actual drilling . has/!, taken place In any of these; offshol?e sit i's. The evidence; is that they. are potentIally,'. rich in oil. ;but many past, 'explorations' have provert!. the nuist geologically prom; ising areas to he dry hales.... The likelihood Is high: that: most of the world's eaSy-tb-;, exploit shallow-water off- shore oil, like' Yetiezticia't ,;Lake NI aracaibo ..: and ',.- the'', ,. ., ? ,fAini Phabi, Marine:Areas:1h., 1 the, Persian Gulf, ; have:, ale,' readly been found.. ? I! Flout if a gigantic offshore rot)v,nol ks'ere to lie rouhd, ? 0NouitiN: it would ahnciO, ift",??ritiody.he far more?cosi'ly , .; and di (Reid( them extractirig the oil frOm time sands Of Sit:,,.: :mill Arabia, where -a barreF, of On costs ' 8 tr?10-cents to:. .; produce at .the;i'll,vellheaci,..",, , From discovery ..1A.full,sealei. ;produclioo,inveiveS ,a MittO: Mum lead tirne:.of five yoni* eVen tinder t.he'-:? best. :go nd i4 trans.' ? ? ? .''''' ' ? The troubles the ,Europet: ans' hme,eneotintcred io the,. North ?Sea' are, an object-lea7, sor' for many ..pursute's Of fon s' oil ? rushes. Deep in . soi ) le of the world's stormi? est waters, North Sea oil is 'proving tote a costly enter- pi-Iso.? Destruction by wind ? and waves -of oil rigs worth :millions. of dollars is a com- mon occurrence. There have been innumerable dry holes at $3 million each. The Brit- .ish government 'estimates :North Sea production by 1980 at 2 million barrels a clay? *only enough to cover Eu. lope's annual growth In de-. ,mand for perhaps two years. ? ' Closer to home, oil al." chemists are dreaming up schemes to turn rocks, sand. 'and tar Into bidet: tibltl, be, dflMitig their ftmliongatil with fantastic estimates of . such' deposits as the Atha- basca Tar Sands In northern Alberta (:100 billion barrels), *the oil. shale deposits of the' Rocky Mountains (1.7 tril- lion barrels) and, the On. noco oil tar belt 'in north.' ,eastern Venezuela (700 bil- lion barrels). ' ' These latter-day Mellen- Ists have successfully 'developed the technology Of extracting the' otl.. What; they often fail to say, how.; 'ever, is that the investments - In time and money are so ; 'high as to represent major obstacles for private: Indus- . try alone ?at least $5 lion In Venezuela find $6 bit-- ? lion in Canada. The ilcad times make major, oil prod- ?uction unlikely in the ?ern:. 'dal decade before , us, if- .. then.. Extraction- of . more; Jhan JO percent of the oil in. : place under any ? these:. ..schemes is highly doubtful..::. Not only are' these plans farfetched from. ,0 /deal viewpoint,' but, they do' not,' deal with the', political': irealities of mounting American nationalism L: Canada and Venezuela. ,. The turning 'point InCtin - adianAinerican economic:: relatitins may: already ?have.: come In March of this 3?ear,. when Canada's NatiOnal En-, orgy Board announced "temporary" limit on crude oil exports to the , United, States of a little more than '1,2 million barrels , a day, turning down applications for 'another 50,000 1-iftrrels..; - :Last ? Thursday, ,???';:?similar" ',II?ealPararY9 ? restrictionS, were placed on Canadian ex,, ports to the United?Slates of, ??gasoline and , home heating nil atter ?.U.S. 'gasoline jumped:.froM.409: :barrels in January to, iUbre:,,,' (bait 500,000 in May, tbretitr-j, ,cning to draw all el Canada's own supply. Canadian officials cite: the French proverb, "Nothing is so Inst jig; as the temoorarY." '-.1'he Energy' ,Boar'd 'Judi.- : ties its actions under a strict intrepretation 'that its res- ponsibilities require it to ? keep in reserve enough to cover Canada's energy needs for 25 years. ' Canadian officials here : point out that Canada's production from its estah- .11shed oil fields is expected to peak in three years and that exploration on Canada's . vast northern frontiers has so far turned up large' gas deposits but relatively little From the frontier areas, where. the ? expectation is that nil will eventually be discovered in sizable qutinti- ties, the surpluses would ' normally go to the Allied-, can market. But there are influential voices i'8totd In riniatith ii1-1011 Erie Kieeci116', economics pro- fessor at McGill University and a former federal Cabi- Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 net minister, who .questions; whether it is in Canada's in; teresi to invest the huge. . sums reqseired to develop' t the north primarily for the. benefit of the Americans "We reject continental- ism," says one high-level Canadian official, "The idea is unacceptable to Canada. You know What happens to, little guys." ? This seems to be partly an; expression of pique over the: . American failure to reply to-:! a Canadian offer in Mareh. :1972 for a joint Trans-Cana-.; 'dian Pipeline to carry .0i1; ,from Alaska's. North. ?and Canada's promising :nearby Mackenzie Illveri Delta area to the American:. :Midwest. . This alternative tei*.the;,: 'Trans Alaska Pipelinee;Veas; - ? offered, according to sr' latet7. :letter from Canadian-, Ern- ergy Minister Donald S. ;Donald to' U.S. Interior Sees:, ;rotary Rogers C. MortOne "enhance the energy seeut 'lily of your country." But, Mel/wield warned, if ? the nil transportation proto lem from Alaska were "not solved with reason and wis, :dom by us tbday," then;' It "could produce difficult in 'fluences in Canada-UnlIW. Strays relations." Eleven months, later, 'February. 1073, McDonald smaimishly told the House .ci( ? Commons that be ; not had a xeply. from Mor-,, Jon and that Canada has "mil 'Intention Of 'renewing 'its.. represent ation, In retrospeet, the failtire,? to take up the Canadian Of- fer may turn' nut to be a ma- jor missed opportunity 'sec- . 'ond only to the fallUre to re. ; spend to the Saudi offer. The prospect is that Can. ada in the foreseeable fu-. ture will remain - e static source of oil for the United States. Even the present 1.2 million barrels of crude a day that the United States gets from Canada overstates Its importance in the Ameri- can import picture. A large ? amount of Canadian petro- leum shipments to the U.S. Midwest represent oil freed for export by major Imports. of Venezuelan oil to Cane- da's energy-poor eastern . coast. Much of the petto, ? leum products the United , Stales buys from Canadian refineries, moreever, are roc- . :essed from Middle Eastern and Venezuelan crude. ; As for Veneztiela, tradi- tionally the largest ekporter of nil to the United States and once Virtually an Attica. can economic colony, its cur- 'rent approach towiulti helping the "Giant of the North" is demonstrated .by what hap. pa nod teat viol% Por teelinieel reasons, Venezuela's prodtip- lion dropped by 9 per cent, while its oil revenues in. , creased by 11 per eent, (hanks etia. ever higher world prices,' This, Venezuelan Officials is ;fine with . theme ,They are mainly concerned with 'maintaining their coull,. :?jrs"sjpisoine.', They do not 1.YOrryi'about'; whether the: United ; States will ? getA: 'enough oil. . ? ' . ? The ? Veneztielaiv?attitOe., iciNitaTd:..30110116an hopes of getting a great deal Of Se4. cure.; Western Ii'llerriistihere in the futurC is reflected,,1 in one offielliPs'words; '? ; e not. ,.\"e,itezstislan pnl icy to Increase Preducticint' ::?:_ahrtintly. We Want Wilde; gradual grOwthi',', ; st lot of ; energy is 1.10114?0 : Waeted In 'America. We; don't Want to ,waste?oer I ' i , To U.SeSeeritirtry Of State .William P. IlOgersl recelit ? invitation to 0e, ,latis to prociticel'ineq for till ma rket,::. ihvsiqmu fIO fact , 'cnide6: ? HVC40Z1101a 1V111 ,:not join aid ? ) mad race of pe,Pciticlion.' .`.. 'When ? ;,'Amerieenst talk'' about getting liI Venezup..,!, lans.note that in 1.1130 71; d11,01,1fl'I'l he svOld's Oil glut', the effect of US, geverte. Ment -policies ;was to draw private Amyl-h.:an oil in vest. meat away from Veneviele to the Middle East. As a re- sult, there has been practi- cally no oil exploration in Venezuela for more than a decade. U.S. companies have been! told that their Venezuelan , concessions will not he re- newed after they expire in 1983. This expression of eco- nomic nationalism has cast a pall over new investment ? plans, includinel thisse toe the development of the Ori-? noco River oil tar belt. During his recent Latin American tour, Rogers of- fered a 'long-term arrang- meat that would facilitate the mobilization of the nec- essary capital and technol- ogy, and establish stable trading arrangements" for the hard-to-extract Orinoco oil. , However, with Venezuela now immobilized in cam- . paignine for its presidential ? election in December, no Venezuplan leader is pre- pared to risk a response to the Yankee offer. Both major political par- ties in Venezuela have made it clear that the days of pri- vate oil concessions are over ?and that the government will insist on controlling any new oil ventures. Venezuela's contribution to America's energy needs is not likely to rise much be- yond the 1.6 million hart els . a :day of both crude and re- fined polo-demo it tiow pro- vides. Venezuelan oil speciel- ists indicate that it should take two or three' years for their country even to get back 'to its 1971 production level and that future production La- creases will he kept to a 2 In 4 per cent annual range. "Venezuela realizes that oil is a non-renewable re- source," was the way one ' Venezuelan specialist sum- . marized his government's at- titude. . For the United States and the world, then, Saudi Ara- bia is, in James Akine' phrase, the "swing pro- ducer." It Is the country whose prnduction is expand- ? ? ing the most rapidly. It went from 6.5 million barrels a day in January In 9 million dnily this moot;,, 'fulfilling Its expansion ohms six months ahead ni sched- ule. In other werds, Saudi Ara- bia has folded more than "awe her Libya" to world oil 1'1'0'111(0(m so far thk year and will add still another Libya some time in 1975. The world's energy plan- ners are banking on Saudi ' ? Arabia's meeting its an- nounced Plan of 20 million barrels a day by 1980. But Arab world pressures have been growing steadily on the Saudis to curb their production growth unless Washington changes its pro. Israeli policies, in the Mid- dle East. Speaking in Beirut last week. Nadir!) Pachachi, 'for- mer head of the Organiza- tion of Petrnieum Exporting Countries (OPEC) and still . an influential figure in Arab oil politics, said that to produce a severe American shortage within a year the Arab countries need only "refuse to Increase prod- uction." In the past few months, Cairo In particular has been bearing down on the Saudis to use their new-found oil le- verage to force an American policy shift. On May 3, King Yokel de- livered a lecture to. the pres- ident of the Arabian Ameri- can Oil Co. (Aramco), the U.S. consortium producing practically all of Saudi Ara- bian oil. Aramco President Frank'Jungers cabled home to the American parent com- panies a detailed summary leisars description of the pressures he is feeling and of his attempt to transfer some of that pressure to the oil industry so that it would In turn place pressure on the U.S. government. The king stressed that he Is "not able to stand alone much longer" in the Middle East as a friend of America, Jungers reported. Feisal said every Arab country hut bin In "MOO tttlfltltd rni4 Ameeleen .Intereate" and of opinion that was now run- ning so heavily against. America," Jungers cabled. The- report of Feisal's plea continued: "He stated -that it was up ; to those Americans and American enterprises who were friends of the Arltis and who had interests in the area to urgently do sritne-4 thine to change the pitstpro of the US(; (United States ? government I' He said a Om- ple disavowal of Israeli Ppli? . cies and actions by the UV: would go a long way towpd quieting the current. net i? American feeling, lie kilt emphasizing that it was' up to us as American business and Americans friends to ? make our thoughts and ac- tions felt (-prickly."' ? Abandoning.: their previ- ous low profile,. American oilmen have been doing just what Feisal asked?offering to testify before' Congres- sional committees, button-* holing State Department policy makers, even taking their case to the White House. Armco officials are un- derstood to he worried that their ambitious expansion plans will be curbed. U.S. in- tellieence analyses are al- ready said to he based on the assumption that Saudi- Arabia will only he willing to expand production to 15 on limo barrels a day, rather than 26 million. There are also reports. that some influential mem- bers of the Sludi royal fam- ily are arguing within the government that their coun- try does not need the extra revenue and. that it would better serve Saudi interest at home and abroad to freeze petroleum production at present levels. Saudi Petroleum Minister Shcika Zaki Yamani, who brought a similar message .to Washineton in April, is understood to be arguing for continued expansion. This position, however, may prove increasingly untena- ble in a country that stands to earn around $5 billion in oil revenues this year and was only able to spend 60 per cent or its *2.4 billion budget laseyear. Already, as a result of growing political pressures at home and an smbietions U.S. response, the Saudi government has backed off its offer of last fall to prn- vide the United States with a guaranteed large oil sup- ply in return for preferen- tial treatment in the Ameri- can market. Perhape the heat elutited Afeneieati iult dipintiterS' to convince, the etatidis to do the United States ? the "favor," as .5.11111Ant calls it, of expanding its oil prod- that even in Saudi Arabia, "it would he snore and,more difficult to hold off the tide 3-6 APProved-For-Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 ? ---.______ o Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 uction is to stress the tacit. U.S. role as Saudi Arabia's great-power protector against major aggression. Washington's 'problem : is the tension between Ameri- ca's position as the tacit pro- ! lector of Israel and as the tacit protector of Iran, Saudi Arabia's main rival in the Persian Gulf. Walking care- WASHINGTON POST 11 July 1973 6'7-1 LiL fully among all those (mien- fiat contradictions is not a task for narrowly' defined oil diplomacy, but for Kissinger- ? style global thinking. ? In the most concrete ex- pression so far of the new - American awareness of the need to placate the Saudis, , the Slate Department. an- ' flounced U.S. willingness to on Locillee t By Jim Hoagland . Washington Post Foreign Service 1 DHAHRAN, Saudi Arabia midnight sky glows in ? lerce red hues here at the ? ?size of the world's largest! _ail field, where American ' ompanies are racing to esca- .ate production needed to :ill spiraling global energy lemands. ? The dancing, hissing natu- ' al gas flares that burn in he horizon ripple in the de- ert wind. ? . Across the Arabian Penin- ula 1,000 miles away, Saudi krabian merchants sweep ato Americhn banks in Jed- lah each morning with huge ; acks of 100 rial notes, each ',qual to $25. A tidal wave of ioney is rushing into the ieuntry as more oil pours In his modest, green-tiles, ; oofed summer palace in the 'nountain town of Tail, King ,raisal receives visitors with , in elegant politeness, stand- .ng as they enter and shak- ;tig hands with them. Rapidly and perhaps some- vhat reluctantly becoming sne of the most powerful eaders in the Arab world, Paisal quickly shows that he 's spending much of his .lme brooding about the. win flows of oil and money Ind their impact on the en- Are Middle East. Suddenly, Saudi Arabia_ las shifted from being seen is the West's main hope for Diving the energy crisis to 'icing another unpredictable. factor In the volatile world of oil and politics. "The United States cannot take us for granted any longer," a Saudi leader, who was educated in the United States and describes him- self as pro-American, said strongly. "Cooperation has to work both ways." ' The four large American petroleum companies that yoitithi oporato kitON Ore pushing ahead with a crash expansion program around Dhahran that could thrust Saudi Arabia beyond the United States and the Soviet sell Saudi Arabia a "limited . number" of the coveter! 1Phantom fighter-bomber, the !same plane that is the pride of the Israeli air force and that has been the symbol of Israel's special relationship with America. Israeli Defense Minister. ? Moshe Dayan called (he American offer to the Saus dis A case of "oil and sympa- thy." A few days later,. ! Prime Minister GnIda Melr ; put things firmly in perspec- tive: "Let me tell you some, thing that we Israelis have arainst Moses. He took us 41) years through the desert : order to bring us to the onr, spot in the Middle East that, has no oil." Union as the wo id's largest petroleum producer in four years. Increasingly, however, , :company officials wonder if they will be allowed to use , the new facilities they are, frenetically installing at the rate of $500 million a year. .Specific warnings by the Sa- udi petroleum and foreign ministers and a more gen- eral declaration to this cor- respondent by King Faisal last week,have make it clear ! that Saudi Arabia is seri- ously considering blocking. future oil production in :creases because of what is: seen here as all-out Ameri?: ean support for Israel. , A Saudi decision to freeze' :production at current levels could create Chaos in an en-. ergy-hungry world, and com- ,`petent Saudi ,officials pre-, diet that the psychological: impact of such an announce-h' ment would drive already rising oil prices upward, even more sharply over-' night. The open discussinn - of such a possibility by the Saudis already amount S to a, major policy setback for the, Nixon administration in the Middle East. An unstatea but priority aim of the administration, has been to keep America's growing need for Arab oil. and its support for Israel separated, or, as a member of the Washington foreign, policy community put it re- cently, "on two separate tracks." The pronounce-, ments of Saudi leaders are ' the first serious merging of the two tracks. They also signify Saudi ,Arabia's new awareness of Its growing power. Amass- ing foreign currency re- serves at a rate of $100 mil- lion a month faster than it can spend them, this nation of about 5 million people IS Isolationism and is cau- tiously emerging as a 'major ? force in international, Arab world and Persian Gulf poli- ties 0 "All the Arabs know that It is in the hand a this gov- ernment alone to `get the West to behave' as they tell 'us again and again,"/ a key. Saudi policymaker said. The other major factor in, 'the new Saudi willingness to' tie oil to politics is the grow- jug , realization here that this desert kingdom's still devel- oping economy cannot absorb :the enormous revenues that increased production and ' higher oil prices are bring- :ling. Given its conservative 'investment policies and the present uncertainty of inter- national monetary condi- tions, top Saudi officials feel ,that production above the 8 million barrels a day figure of May is wasteful for them.\ The Saudis have passed this message to Washington . through a number of chan- nels. They have not made it clear exactly what they' want in the way of a change; in American Middle East policy. But a series of conversa- tions with Cabinet-level offi- cials over the past week did indicate that the Saudis feel ? they need some public sign 'of American willingness to consider ,the Arab cause -more 'seriously, esbecially in areas like voting in the; United Nations Security Coun- cil. ? "We are not asking for the destruction of Israel," said a Saudi minister. "We' want.,a reasonable policy to ?bring'a settlement." ? / Other Saudi leaders stress that their government has: been "disappointed and em- barrassed" by the Nixon ad- 'ministrations failure to move on the diplomatic front, while stepping up new military aid to Israel, de- spite -what Saudis ? insist were clear promises of a shift in the Middle East af- ter President Nixon's re- eieetion 140 1114F, The underlying suggestion is' that the Saudis went out, on a limb by counseling re- straint. on other Arab coun- tries, especially Egypt, on the basis ofe an(D:Octed. American shift that-has not - materialized. Previously undisclosed production statistics for this year underscore the West's increasing dependence on Saudi Arabia, which has oil 'reserves estimated by the Saudi government at 156 bit- , 'lion barrels, 22 per cent of ,the non-Communist world's total proved oil reserves. In May, production by Ar, *time?, the operating com- pany for Exxon, Standard Oil of California, Texaco and Mobil, soared above 8 million barrels a day. If oil industry estimates of Soviet' production are accurate, S'. ;di Arabia has quietly surpassed , the Soviet Union as the . 'world's second largest produc- er by a small margin: Sand storms in 'the, ?Persian Gulf hindered ship -loading in June and pro- duction slipped back to 7.2 million barrels a day for the month, even with the oil port closed 49 per cent of the time. This was the origi- nal target -figure for ?.verage production by Aramco in 1973. Since production usually rises more sharply in the second half of the year, it will easily be exceeded?if, Saudi Arabia permits the in- creases. In the first week of July, Aramco says its prod- uction was running at 8.6 ; million barrels a day. U.S.'. production is less . than 10 million barrels daily. In six months, Saudi Arabia has increased its total', crude oil production by '40, per cent. Arranco's esti- mated capital budgets of $500 million for 1974 and 1975 indicate that the com- pany plans at least a 20 per cent increase in production In each of those years, mean-- ing that, by the end of 1975, the company sees a world- wide market for Saudi pro- duction of 0 nilliltilIPiifttcla daily. This month, 500,000 barrels of Saudi oil will be import- ed into North America. In- - dustry sources predict that _Appro.v.ecLEar,..Release_2001%78/07_ :CIA-RD.P72410432R0.001001.90001,6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 the United States will need , to import five times that. figure by 1975 to keep pace with growing energy de- 'mends. At . current production, Saudi Arabia will earn more , than $4 billion in oil rev- enues this year, a 30 per cent increase from last year. At least $1 billion will be ' added to Saudi Arabia's present foreign exchange holdings of $3 billion. The rush of new oil rove- nue into Saudi Arabia hau stunned even Saudi financial managers, who until a few months ago were predicting that their sparsely populated country, which has few tale- phones and long-distance highways, and insufficient numbers of schools, would be able to spend enough of the revenue to make oil pro- duction increaseo , worth- while. Faisal, who sees a long-. term danger to the intensely conservative Saudi society from too much easy money, has resisted large-scale so-, cial welfare programs and bureaucracies such as those that have helped other gulf states soak up their oil 'money. ? 'the national development budget has spurted from vile tually zero four years ago' to $3 billion in the last fis- cal year. But only 62 pan cent of the development funds could actually be spent last year. "We don't have enough con- tractors to do what we can budget, and what we want to do," Hisham Nazir, president of the government's Planning Organization, said. "There aren't enough contractors in the world.' Nazir's organization Is draw- ing up a new five year eco- nomic plan to begin in 1976. It will calf for $40 billion to $50 billion total expenditures. The budget figures assume that Saudi oil production will Increase only by 10 per cent annually in the future. "Saudi Arabia must draw a firm policy on oil production," said Nazir, one of five key officiale named by FaAal to the newly formed Supreme' Petroleum Council. "The pol-' icy will have to put an end to waste" brought about by over- production, which adds to Saudi internal inflation and the piling up of devaluing, dollars. "We have to strike a bal- ance between competing factors that include our de- velopment requirements, prolonging our national oil reserves over the longest period, the absorptive ca- pacity of our economy, the, accumulation of monetary, reserves that decline in val- Ate while prices for oil rise, and world enemy eequire- went ed" ' A. Saudi Cabinet minister' explained: "We have found that the maximum revenue we can usefully absorb is brought in by production of 7 million barrels a day. Anything we produce Over that harms our. own inter- ests, by keeping price's' ; down and by disturbing our economic balance. "We are prepared to go out of our way and produce more. But we have to have 'a reason." The Petroleum Council Which clearly mixes foreign, ?and oil policy interest, will, recommend Saudi Arabia* -first national petrolivan poli- cy to Faisal. The debate._ over freezing production at: ,current levels is expected to' go on for some 'months,' while the Saudis look for signs ? of a change in Wash- ington. Saudi officials stress that In their view they are not :talking about "using oil as a weapon," as mole militant' Arab states have demanded.. : There are no suggestions here of a complete oil cutoff to Western countries similar to the one that was briefly: 'tried in 1967. But if Arab-Israeli fighting', should resume, these same ,officials make clear, Saudi, oil would be immediately :cut off. "If there is a battle, we are in it," said one au- thoritative source. "People had better understand that now. ' One suggestion that will. reportedly surface in the Pe-' troleum Council involves freezing production at this year's original target figure, '7.2 million barrels a day, for the rest of this year and 1974. This would have an es- pecially sharp impact on the .oil companies, who would ,.see the return on their mas- sive new investment. de- layed. The Saudi Finance Minis- , try, which faces difficult de- cisions on -the accumulating revenue increases, is reli- ably reported to be pushing , hard for a production 'freeze. So is the Foreign j\linistry, which must bear ..the brunt of Arab Criticism int Saudi Arabia's tradition- ally close ties to the United 'States. Saudi, Arabia's new activ-;, 'fpin Arab' affairs was un- derscored last week when , the kingdom granted the Arab Socialist Beath govern- . 'Anent in Syria a $24 million , development loan. ? ? Top aides credit Faisal, 67, with having dissuaded .Egypt'e President Anwar Sa- dat from launching a mili- tary strike into the Israeli- occupied Sinai Peninsula in early June, and a top envoy, ewas to he. 'dispatched to e Cairo this week to assurc Sada of continued Saudi It- MrtiltIbt 1414Niort ?stays out of the .propoied-,1, merger that Libya's fire, 'brand young leader, Col. ? Muammar Qaddafi, is push-" ing. ' Saudi officials are diplo- matically vague when asked : what first sstep the United' States could take to evi- dence.a change toward the "evenhanded" policy Faisal called for last week. "The puzzle is what is it that our American friends want," said Foreign Minister rOmar Saqqaf. "Why is the. help help always - for Israel? ? , There are more than 2.5 mil- lion Palestinian people et- ther in refuge (abroad) or , under occupation.... "If people think this quese tion is going to be as it is now forever, they are wrong," he added. "We are 'friends with the United , States. We want to be ; friends. But there is always a limit." WASHINGTON POST 12 July 1973 p ? 77-?71 (Thi c'T1 s1.-1 0 o 1. h By David B. Ottaway I 'WashInaton Coat Staff WrIter Japan and European nations ca's oil production in a corn- 0 it L[,Rellze have raised serious objections to a recent U.S. proposal for an oil sharing errangetnent in times of emergency, raising fresh doubts' about the possi- bility for cooperation among ethe major oil-consuming na- tions. Under Secretary of State William J. Casey told a House 'subcommittee yesterday that the U.S. govcsament proposed in June before the 23-nation Organization of Economic Co- ? operation and Development a ; sharing scheme involving only I the world's imports trans- ported over international waters. Japan imports nearly all of Its oil and Europe more than 70 per cent, while the United States currently depends on 'imports for only 33 per cent of its total needs. Thus, the U.S. plan amounts to asking Eu- rope and Japan to accept a far larger cut in their total oil supplies than the United j.States' would incur in any ' emergency. , Casey said Japan had made a counterproposal at the, same OECD meeting in Paris that the United States include its entire domestic production in any sharing arrangement, a position the European coun- tries are understood to have supported. But Casey indicated that the U.S. government strongly Op- posed the inclusion of Amen- mon oil pool. Although he admitted under questioning front Rep. Lee H. Hamilton (D-Ind,), chairman of the 'House Near East 'Sub- committee, that the U.S. posi- tion was a "considerable com- plication" in efforts to, reach an agreement, the under sec- retary said he thought there was still a "pretty , good chance" of the United States, Europe and Japan cooperating on an emergency oil-sharing plan. Casey also told the subcom- mittee that he did not find a e"threat" in King Faisal's re- cent warning that Saudi Ara- bia's close cooperation with the United States was endang- ered by Washington's policy of strong support for Israel. Saudi officials have been hinting recently that Saudi Arabia, the key country in meeting the industrial world's growing 'energy needs, may limit its oil production if the U.S. government does not fol- low a more "evenhanded and just policy" in the Middle East. ? Casey disclosed that Wash- ington is planning to send it mission to Saudi Arabia this summer to discuss what role American companies and the U.S. government could play in helping the Saudis develop their economy. But he excluded any possi- bility of the two countries signing a government-to-gov- ernment agreement for oil supplies, saying that Washing- ton believed such accords were "counter-productive." Approved For Release 2001/08/07 : CIA-RDP77-015432R000100190001-6 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100100001-g WASHINGTON STAR 8 July 1973 By Andrew Borowiec Star-News Special Corrrspandent BEIRUT ? Arab sheiks, potentates and economists, ? are all trying to come up with a formula to turn their oil into a major pressure weapon aginst the United ; States. ? The ultimate objective is to force America to aban- don its unconditional sup- , port of Israel and helo re- ? draw the map of the Mid- dle East. As usual, the Arabs are torn between the practical and the emotional aspects ? of their struggle against Israel and its powerful: American backer. But in the torrent of words and,,' amidst confused and often, quarrelsome meetings, an embryo strategy has begun to emerge. ? It is called "selective, sanctions." In a nutshell, it means that the Arabs will continue to pump oil but increases in shipments will ? be applied selectively to countries friendly to the ? Arab cause. Conversely, staunch friends of Israel, . such as the United States, will be punished by produc- tion freezes and possibly reductions in supplies. , All this is still basically on paper and a number of observess remain skeptical about the extent of Arab. unity and effectiveness in this field. But a number of American diplomats and oil experts in the Middle East are worried. MOST ARABS have little. 'doubt that the United States has no Middle East policy of its own but merely backs 'Israel's strategy, which has ? been that of defiance of the widely dispersed and con-. stantly feuding 120 million Arabs. "Indeed, we and Israel have a perfect entente," said an American diplomat in this Arab capital. "We even fight their (the Israe- lis') battles for them ? such' as helping to get Jews out of Russia.," This diplomat was seri- ously concerned about the possible effectiveness of a concerted action by such oil-producing states as Sau- , di Arabia, Kuwait, Bahrain all conservative counj .tries. Another American ,expert, however, feels that ?"people have been crying wolf for 25 years" and that; no concrete Arab measures' ,are in the offing. ' He pointed out that de-,1 ,spite the Arab clamor for anti-U.S., sanctions, the; expansion of oilfields in: such Arab countries as', ''Saudi Arabia and Iraq was' continuing Saudi Arabia, 'alone, plans to increase its present production of 7.2 million barrels a day to. 20i million barrels by 1980. This will be the year in which the United States is expected to rely on Middle Eastern oil for 50 Percent of its consumption. Can Saudi Arabia, which relies 'on. American arms and possi- ble protection in case of, 'conflict with "revolution-s ary" states, turn off the' :tap? IF ONE LISTENS to var-: .ious Saudi and Kuwaiti statements, this is very much in the cards. Yet the Arab record on this and other issues has been that of confusion and contradic. -tion. Money pouring into Arab ,coffers has failed to serve Arab political objec-, tives in concrete terms.' While capable of creating 'havoc in money markets, this accumulated mass of gold and Western currency has yet to harm Israeli and American interests in the Middle East. As with almost every- thing, the Arabs do not ap- pear to be in a hurry. They' point out that the oil con-i sumption of all industrial.' ized countries is rising. steadily ? 8.7 percent an.. nually in the United States alone, which is higher than anywhere else in the world. They stress that 60 per-, cent of the world's known reservers are in the Middle' East (including Iran) and. 'that sooner or later any, country wishing to keep its 'industrial machinery going' has to pay more attention to., Arab views and desires. , Meanwhile, money contin- ues to, flow into Arab banks; and private vaults. The oil income of the Arab etititv, tries has already topped $10 billion and is expected to reach $40 billion dollars by 1980 ? the expected energy crisis year in the United ,States. -Approved- - 1.1 ! ! ; ! It is no secret that Saudi Arabia is on its way to accu- mulating staggering mone- tary reserves, expected to surpass those of the United States and Japan combined, . WILL THIS mass of money be used toward a cohesive plan likely to fos- ter the Arab cause? Or will it continue to be dissipated in grants for grandiose proj-. .ects, arms and other ex- penditures that have yet to increase the Arab World's' military prowess or eco- . nomie situation? , No ready answers are available. But discarding. the passionate outcries of ,such Arab hotheads as LA-: .bya's Col Muammar Kazza?-? Ii, there are some very lev-: el-headed efforts to make Arab oil a powerful political( weapon. For example, Nadim ?Pachahi, former secretary general of the 11-nationi ;Organization of Petroleum', Exporting Countries, :(OPEC) urged the organi- zation's Arab members to freeze their crude produc- tion at its present levels' until America shows a more balanced Middle Eastern .policy. Said Pachahi: "In the present'seller'S ,market for crude oil, there is no need for Arabs to threaten to stop the flow of oil altogether, thereby cut- ting off their noses to spite their faces. "All they (the. Arabs), would have to do is to re- frain from increasing pro- duction. This would be sufficient to cause a world- 'wide supply crisis in a very .short period of time." In Egypt, Dr. Issam Ed- din el-Hinawi, a professor of that country's National Research Institute, suggest- ed that Arab strategy, 'should be based on control- 39 ? 1111A lilt the flow of oil to the West. , He proposed the creation ?,of a "strategic materials1 office" that would be at- tached to the Arab League.' ; This proposal was echoed to some extent by Saudi Arabia's influential oil min- ister, Sheik Ahmed Zaki Yamani, who would like to exploit the international concern caused by the ener- gy crisis. NEEDLESS TO SAY, the Arab moves are being watched carefully by Israel, which is trying to reassure the United States that all these plans, suggestions and schemes are far from. beipg concrete. ? Said the Israeli Jerusa- lem Post in a recent editori-, al: "It is no coincidence that the Arab states advocating the use of oil as a political weapon are those who do not possess oil, led by Egypt which is permanently ,short of funds. ? "American public opinion would be well advised to' take all these factors into consideration so that when gasoline rationing may be- come necessary, anger and frustration will be directed ' where it belongs and not at ? Israel. "Serious questioning of how America is to maintain her present position as a superpower must lead to planning for alternative Sources of energy and new sources of oil not subject toj Arab pressure and de- mands," the newspaper. concluded. Not many American oil experts in this part of the, world agree with this view. 'According to one of them, "Israel is not likely to be harmed by the looming en- ergy crisis. But I am worry- ing about ' the United 'States." 000400190001 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6 10101973 TitE WASHINGTON POsT Peterson Urges Cooperation By Hobart Rowen Waghington Post Start Writer ? Energy will be sail an 'overwhelming an d compli- cated issue for the United, States over the next decade , that the nation must not risk "going it alone," says Peter G. Peterson, former Commerce Secretary and recently special ambassador for President Nixon. In an interview, Peterson'! ? now a senior partner in the investment firm of Leh- man Brothers of New York said that the whole en- ergy question should be part , of any summit meeting'; scheduled later this year. Peterson has just com- pleted a confidential report for the President on inter- national trad e, security,' monetary, and energy prob.:' :hems. It is titled "The Year of Our Friends ?The Year of Europe and Japan and ' Canada." , The way Peterson sees it, the failure to cooperate with Japan and Europe and the Mideast on the use of energy might result in "can- nibalism," driving oil prices out of sight. And each dol- lar per barrel increase in , the price of oil, he calcu- lates, would add about $4 billion to $5 billion to the annual 'U.S. import bill and $15 billion to $20 billion ts, the world's by 1980. The frightening prospect that he draws is that by 1980, the 'United States will be shelling out some $25 billion for for- :Oen oil, seriously aggravating 'the balance of trade and pay- bents. What this would do to dollar already weakened in the eyes of the world's busi- nessmen and traders is any- 'one's guess. R,epeated devalua-? tions, he adds, are no answer because all . major industrial, nations are in the saute boat. Another major reason for Cooperation is that the oil ,companies themselves won't be able to resist the demands 13., the oil-cartel producing eciuntries for price increases. .4 And above all, Peterson in-, ists, unless some sensible ap- proach to the energy problem Is worked out, it will get inter- mingled with the tricky Mid- e:ast political conflict and cause major security prob. .1 Peterson's report to the resident has. not been made public, but it is clear that he tinks that energy is the corn- Mon element among America's $any international problems. 0 The President recently ap- Pointed cornier Gov. John A. 15ove of Colorado as his new Gni man on energy problems, but so far, the administra- tion's focus has been on the domestic use side of oil, and Ms; not boon flitaneted at the international problem. But he resources are finite, may de- reveals that presidential aide cide not to increase prod- Beery Kissinger is showing uction so rapidly. And in any 'weep interest" in the interne- ;event, the Middle East coun- . tonal aspects of the energy problem. The way Peterson sees it, 'a first element of a cooperative 4pproach with the Japanese and the Europeans would deal with such things as temporary, shortages, which can be met ly stockpiling for emergen- cies. Rather, than confront thg- Mideast countries, he opts for, cooperation; thus avoiding hat is recommended bY , any others?a buying consor: 9urp. Such a "draconian ap. *oach" would be a last resort:, e also advocates a massive' Project on energy research, ebniparable in magnitude to the Apoilo program, to de- itelcip new sources from nu- fusion, solar energy, and inything else that .ccitnes al4ng. 14: Another cooperative, area Would be conservation, possi- ' Y higher taxed on automo- *le horsepower 'arid study of iOulation standards for new cbnstruction that would pre- vent the waste of energy. A horrible example often cited !the new World Trade Cen- t0 in ' lower Manhattan. The 4Arin towers of that edifice are Said to have an efficiency re- ad for their heat use of less thlin 10 per cent. t he international monetary cbinplications of the energy problem are among the most intriguing. Peterson says that by 1930, the dollars pulled in by the oil producing countries will be, according . to a .con- servative estimate, about $50 billion to $75 billion, corn- pared with about $25' billion in 1975. lie cautions against taking Precise estimates too seriously because the volume of oil im- port and price are necessarily conjectural. ?, The Saudi Arabia govern;, merit alone will be earning about $30 billion by 1980, or 40. per cent of the total of the producing countries. This com- pares with $8 billion in energy receipts by Saudi Arabia by 1975. Iran would pick up about $15 billion compared with $5 billion in 1975. In terms of American de- pendance MI North Africa and Middle East oil, Peterson's es- timates are that by 1980 our Imports from that part of the world will account for 20 to 40 per cent of our total oil use. That compares with only 2 per cent in 1U70. Western Europe, Japan, and the rest of the free. world, already heavily depend- ent on the Middle East, will be even more so: ? . , . 'Peterson's figures assume that the Middle East countries will continue to be attracted by higher prices, increase their production, and sell the West all the on It wants to buy. ; :But the Middle East coun- tries, knowing 1.1151 their oil liries broadly suggest?that un-t Meetings this year: "' less there is a solution to the Underlying Peterson's sense of urgency is the fact, he feels 'isfactory to them, they May ? Arab-Israeli conflict more 'sat- that the oil-producing coun- tries have alternative ways an. not cooperate with the West at 'Clif reaching their objectives. Peterson recognizes thes ; rl'hey can restrict production, ei ?or emphasize their own longer- ui problems. He made the point; the. interview that many AT term domestic objectives. ; ? abs want to be treated as re- sponsible members of the Lam. ily of nations. .What Peterson recommends IS a, recognition of Arab de- Mends for treatment as an 'equal partner in the interna- tional syst em. lie would establish an eco- 116one o,veluoinenc commis- sion for the Mideast to help plan major new projects of all kinds in conjunction with the Arab countries. He would also do things to assuagethe Arab ego. Example: he would send Senior ambassadors to the 'oil producing countries and try to attract Arabs to international institutions such as the IMF. Meantime, he thinks the United States should give ' more study to ways in which ? the excess funds-,.- ,he calls them "petro dollars" ?can be soaked up. Anticipat- ing' that there will be large amounts of Arab capital flow- ing In all directions, the United States ought to have a -policy on whether to encour- age or limit investments in particular industries,' , In the delicate area of Arab- Israeli relationships, Peterson observes that the United States will be under great pressure to differentiate its policies from those of the? state of Israel. He is careful tto say that we should not re- , duce our political'support of Israel or make Itrael the 'scapegoat because of our ',needs for new sources of?en- ,ergy. On the other hand, he !thinks there is a 'need to un- derstandi the Arab view that 'American policy too often sounds like an echo of Israeli policy. ? ? One of Peterson's main arguments is . that time is short for handling the energy problem. In the course of his survey of the situation for the President, he found that the Europeans and the Japanese look to the United States for leadership. He would get an Immediate start on the Stock- piling and researching pro- blems by setting up task forces. He would buttress this with a small team of' experts drawn ,from various U.S. agencies 'who would visit each Mideast country to sound out the potential degree of coopera- ,tion and their spetific deve- ,lopment needs. In terms of ,structure, Peterson would set up a high level position, a president i a I ambassador at large for international energy policy, The Peterson timetable would call fin' a new inter national eto trny itiblitittion to p1 nd nn e implentent tint ens operative proposals along with an agreement on a broad set of principles of cooperation, emphatically. "It is tied to by the,time of President A IN trade, money, politics and Nixon's proposed sum mit1f-tv everything else," The financial side' of the' energy problem, of course, ;exacerbates the intrinsically sticky question of the weak- ness of the dollar, and pros- pectiv.e international moil- tary reform. t In Peterson's view, a re-1 formed international monetary' ? ?system is farther off than meat. .iofficials in the U.S. govern-, ment have been hoping, partly because of the "petro-dollar:! problem. -, The Europeans Peterson, talked to' in the course Of re- porting for the President want' a resumption of convertibility of the dollar. But the United 'states can't even think of con- vertibility while the dollar is weak and the balance of pay- ments still in a big deficit. ' In his travels abroad for the President, Petersen found 'that some Europeans are se- riously ? worried by the pro- poSal made last.year by Tress- airy Secretary George Shultz that would key 'balanee of payments adjustments to the 'level of 'reserves on a more or less automatic 'basi Some important Europeans 'appeared not to understand the Shultz proposal. The Europeans, 'are afraid ,that large speculative flows, ;that affect reserves would cause unwarranted changes In their exchange rates. They say quite vigorously that they won't tolerate what they view as a threat to their own ,ex.? ports and full employment possibilities. Perhaps even' more serious, ,Peterson believes, is the .European view that the United :States has ulterior motives. Some Europeans charge that the United States would use -capital outflows to depreciate the dollar and thus shift to them the burdens of our do- mestic policies. ? Moreover, for all of the talk of increased exchange rate flexibility; Peterson quotes at least. one influen.' tial European, French Fi- nance Minister Valery Gis- card d'Estaing, who suggested again that exchange rates: shouldn't change , more fre- quently than once every three or four years. That is a far cry from the kind of flexibility that Shultz, Peterson, and many others feel is Crucial to 'a reformed monetary system; Nonetheless, Peterson wants the United States to push ? ahead for an. agreement on general principles and interim rules. . But . none ' of these things, Petersonconcltidea, will mean, mhcli finless we rket IA handle ,tm ,4 1'.11 tit,i0liMloet$!t,tib. thri tortuously , UiI 8lt4 04110, Iota. "Energy le the iiey In. ternational issue for 6 far' ahead as we can see," he says _ Approved For Release 2001/08/07 : CIA-RDP77-00432R000100190001-6