Document Type: 
Document Number (FOIA) /ESDN (CREST): 
Release Decision: 
Original Classification: 
Document Page Count: 
Document Creation Date: 
December 9, 2016
Document Release Date: 
June 7, 2001
Sequence Number: 
Case Number: 
Publication Date: 
November 27, 1973
Content Type: 
PDF icon CIA-RDP77-00432R000100290001-5.pdf6.74 MB
25X1A Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 CONFIDENTIAL INTERNAL USE ONLY This publication contains clippings from the domestic and foreign press for YOUR BACKGROUND INFORMATION. Further use of selected items would rarely be advisable. No. 50 3 DECEMBER 1973 GOVERNMENTAL AFFAIRS 1 GENERAL 21 NEAR EAST 26 Destroy after backgrounder has served its purpose or within 60 days. Approved For Release 20ffitr/g)7E:NCrK-LRDP77-00432R000100290001-5 ' Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 NEW YORK TIMES 27 November 1973 Excerpts From, Whit Housenalysis ? an , -- t, Executive Privilege Claims for Tapes 1, SPecil to The NM York Tunes dent. There idnothing in this.' thereafter to White HI House( 'WASNGTON, Nov. 26? conversation ? "concerning' counsel, J. Fred Buzhardt. as Following are excerpts front ,possible criminal conduct or having occurred on a portion the White House analysis and discussions of possible crim.: of the tape recording subse- claims of executive privilege _inal conduct" as to, testimony 'quent to that of the meeting, , fetre subpoenaed tape recordet, Concerning which the Presie between the President and ' inks; submitted today to Unit- dent announced he would not John Ehrlichman, which at ' ed States District Judge John,. 'invoke executiVe privilege on' that time and until November' 'J. Siricas ? , ? --," May 22, 1973. . 14, 1973, was believed to be 1 PART I ? - Haldeman4sibton ,, ,. - ' ,; The only part of that recotd-? mg r subpoenaed. The incident effein 1' (A) of the Subpoena; :-. Conversation betWeert the ..; rates to meeting of June 20,, : President and his assistant,- was therefore believed to be 1972, in the President's Exec-'' .11. R. Haldeman, from '11:26. 'inconsequential. eutiVee Office Building ("EOB")), AIM. to 12:45 P.'M. in the' i The delay in discovering (;)(,0ee involving Richard Nix-e . President's "EOB" office. ' :that the incident affected a, ,ok, John Ehrlithman and H. .' ' This conVetsation. Was* rel, portion of the tape contain- Haldeman from 10:30 A.M.'; ' corded on tape by the sound-, :ing a subpoenaed converse:. ,td-noon (time, approximate). ' '?'actuated recording systerri, tion was du to the ambiguity. L '-he President's daily diary, described in, testimony in the of the language of the, sub- lag ibr June 20, 1972 (Exhibitl , evidentiary hearing held byl 'poena. The applicable portion ! 11), shoWs that thelPresident. this court. and the tape re-' of the subpoena, dated? July rriet.,alone with his assistant Ording is being submitted as 23, 1973, is: : `Jelin* D. Ehrlichman, from.. Item I.B.I. covered by the, ' "1. All tapes '4n1 other eiec.;: 25 IL !tronic anchor mechanical ree 10 to ?11:30 A.M. in hid' subpoena.. "EbB" office. Subsequently, , This conversaticn relates ,cordings or reproductions, 'f: ; , the President's Exec.. *:' ' ? . I the President met with his as- primarily, to.. Scheduling and' and any memoranda, papers, siStant, H. R. Haldeman from (travel. Foe a pertion of, O transcripts' and' other writ- da': ? 1P26 A.M. to 12:45- P.M. int ','recording, In lieu of any'audi-e ings, relating to: . InA "EOB" office. 'tile conversation, there is " "(A) Meeting of June 20, conversation between the constant hum.' (See "B.1.: (c) 1972: in ei.' P4es1dent and John D. Ehrlich- below.). At one point during.' .utive Office Building MOO -i men, from 10:25 to 11:2 0A.m. the meeting the President :0e involvingRichard Nix 'ireethe President's "EMI" of- 'spoke on the telephone to his on, John Ehrlichman and'flee. daughter, Julie: None of the, H. R. Haldeman from .10:30 i ' 1.?'his conversation relates recorded conversation relates' 'A.m.' to noon (time approxi'' :1 pr marilY to the higher edu, , to Watergate.t .; m ,ater . cation bill then under con- ? , There is a :lapsed playing e In the remainder of the sideration by the Congress. -time on the tape of approxi- subpoena applicable to tape', Other subjects discussed in-' mately 3 minutes and 10 sec- recordings, each separate? tie chide school busing, the Su- 'onds, during which the Presi- meeting is subpoenaed as .pteme Court decision (U: S. dent reqtAsts contomme and` separate item. Accordingly,, Iv. Item (a) of the subpoena was'. initially S. District Court) on speaks to the steward about' initially assumed to be' aPel national security wiretap- minor administrative matters e plicable to only one meeting. I pitig, press conferences and The tape records various - An examination of they formats, legislative ac- noises' of movement; * The President's daily log revealed; tion on proposals for welfare ? playing of the tape recordin i , reform and the Stockholm from the point where H. R. that there was rip meetingwith the President on the. cOnference on environment. Haldeman enters the office'to During the conversation, the t :his departure is approximate,: morning 'of June 20, 1972, ini *Ptesident conversed on -the ly 54 minutes 'and 49 sec- whieh both Mr.- Ehrlichman: telephone with a .edeputy as-'. ends. The playing time of the and Mr. Haldeman partici- i 'siStant, Edward L. Morgan,. tape ? preceding significant 'sated. ' , . about the higher 'education: portions of the conversation - ' Mr.' Ehrlichman, however, ' ? are as follows: ? : - - , met with the President from' 'legislation. ; ,There is no discussion or EVENT?Playing time front, meeting most nearly coincided '10:25 A.M. to 11:20 A.M. This ". ' p , cdthment which relates, either': ' di beginning of recording fthis fectly or indirectly, to the Meeting most nearly coincided?.! conversation. ? -incident at the Democratic , :With the time specified in, the ; National Committee offices at : ? ' Start of `Iturii" signal: 3, fsidepoenas. ' ? ' ' . inutes 40 seconds. m - Watergate Which occurred aEnd of "hum" signal:. 2ie ' testimony by 2 Aides . ' fek.days prior te the con-, ' eversation. e `; In addition, the public testi- : ' minutes 55 seconds. ? Telephone conversation: 47 mony given by Messrs. naidee'; 1 The conversation recorded: . lonethis tape consists of ad-* man and Ehrlichman indicated: 'minutes 0 seconds. ? ' !vite .to the President by his. 'that it was Mr. Ehrlichman's' '',' It is believed that the hunie 'then senior assistant for do- which occurs approximately 'conversation .in ,-which the:: mestic affairs on Official poi; .3 minutes and 40 seconds'. Special prosecutor would haye' ., icY decisions then pending :from the beginning of. this, ,'an interest. before the President, and the conversation between. Presi , e . ,White House counsel is net* 'conveyance to the President dent Nixon and H. R. Halde-1 ',aware of any testimony givert ' beeihis assistant of the. advice maneand which continues fort ;by Mr. Haldeman relating to of 4 other. identified person. approximately' '18 minutes' a meeting with the,President, within the Administration on and 15 seconds, was caused ' on June 20, 1972. . the same matters. Nothing in -by the depression of a record ? ' Mr.' Ehrlichman,' however, the .conversation relates to button during the process of Was examined in some detail' Watergate on anything eon- 'reviewing the tape, possibly, ' nby the Senate Select Commit- . fleeted therewith. while the recorder was in thei -tee on his meeting with the ' The President believes that. 'proximity of an electric type- President on June 20. On July* , the conversation is subject in writer, 'and a high intensity' , 24 1973, Mr. Ehrlichman tese ; its entirety to a claim of ex-' 1 ., tified, in answer to questions amp 'gate at this meeting with the President, but rather, met with the President because he "needed some decisions and some marching orders" on particular legislative sub- 'subsequently, on July 300 1973, Mr. Ehrlichman, fled: told Senator Baker, I. believe, the other leas, that, eWatergate was not idis- cussed at the meeting and. since then I have rechecked ...what sketchy notes I have and find I was in error .on that. I am sure there must have been some dis- cussion of 'the Watergate . with the President on that f occasion on the 20th." . 'Memorandum of Prosecutor It was not until the eve- ning of Wednesday; Novem- ber' 14, 1973, when copies Of the 'tubpoenaed tapes' were provided 'for,. White House, counsel's use in preparing, .the index and arialYsis .re-) tluired under the court's' di-. rection, ?that all 'materials re- motely relating to the sub-, poenaed conversations were reviewed to to assist in prepar,,f, ing the analysis. Among the materials 'then reviewed was. the opinion ? of the United States Court, of ? Appeals for. the District of Columbia,, Nixon v.:Sirica, decided Oc-' Ober' 12, 1973( 'Appendix Ile; beginning at page 48 of the: opinion - is a memorandurni filed by the special' prosecue ?tor'with this court on August' *-13e 1973: The, first numbered, :item of that memorandum id as follows: "1. Meeting of Ante 2b? 1972. Respondent met with: ,John D. .Ehrlichman. and H. R. Haldeman in his old, Executive Office Building office. on June 20, 1972,' from 10:30 A.M. until ? ap- proximately. 12:45 P.M. '"There is every reason . to' ,infer that the meeting in-' "eluded, discussion of the' Watergate incident. The* .break-in had occurred on; 'June , 17?just, three days' learlier,' Dean did not .re- turn to Washington until! June ,.18. Halde- man. and' LaRue had also; been out of town and did, ,not return until late on': June 19. . ? "Early on the morning :Of June 20, Haldeman,; .Ehrlichman, Mitchell, Dean: 'and Attorney General; Kleindienst met in, the; 'White House. This ,was -their first opportunity for, full discussion of how tei, ?handle the Watergate, in.; ecUtive privilege in order to The incident was detected by Senator Baker, that he ident, and Ehrlichman has. ? protect the confidentiality ?and reported when ,made ?had ,no recollection or notes testified that Watergate. `. of Advice' given ,tp,the Pres 'the President, , and shortly, ,Of having ;discussed Water- was indeed the primary} ? Approved For Release 2001108/07 : CIA-RDP77-004321190100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ?;subjett- bf the meeting From there, Ehrnehmen, ;and then Haldeman went' Ito see !the President. The, inference that they I ported ;on Watergate, and., may :well have received Instructions, is almost ir- resistible. The inference is confirmed by Ehrlichman's public testimony/that' the discussion with respondent included both Watergate ' and Government wiretap- ping. The contemporary' evidence; of that meeting should show the extent or, the knowledge of the did- gal ? activity by the par- . ticipants or any effort to conceal the truth from the ? . respondent." '? Only the: most careful reading of even this memo-'. randum discloses that the, special prosecutor seeks a recording of more than one ' meeting on June 20, 1972. 'Only, two indicators are pre-' sent. First, the ending time Of the. '"meeting" in the' memorandum is 12:45 P.M.; rather than ' the approxima-; tion of "noon" as specified in the subpoena. Second, the .word "then" in the sentence, "From there, Ehrlichman and then Haldeman went to: see the President" indicated the,: special prosecutor sought' recordings of two sequential ;meetings. ? Inquiry,to Buzhardt ? '? White House spetial coun- sel J. Fred Buzhardt received' an inquiry pn September 23, 1973, as to the conversation?' 'covered by the first item of.-; ?the subpoena, to which hel ;replied that the conversation, at the meeting with Ehrlich-; man was what was involved,'. .and that the special .prose- cutor must have been mis- taken' in assuming that Halderman also was in the meeting. This response was relayed to the President and, to?Mr. Steve Bull. ' , The conversation, on the 'tape recording of the meeting between H. R: Halderman, .and the President consists of; 'advice to the President by a, 'senior . .o adviser on official de-', :cisions then pending before' the President. None of the,, 'Conversation recorded relates; ;to Watergate. ? - t , The President believes that the conversation is subject in entirety to a Claim 'of executive privilege in order, to protect the confidentiality'. of advice given to the Pres-, Ident. There is nothing in. this 'conversation "concern- ing possible criminal conduct' or discussitms of possible criminal conduct" as to testi-' mony concerning , which the President announced he would not invoke executive ,privilege on May 22, 1973: A file search has discloaed handwritten notes of H. R. ,Haldeman, which from the,, identifying marks and the' ;content indicate the notes, were' made by. H. Halde-., man during the meeting with- the President on June 20, 3972, between -11:26 A.M. 'and 12:45' P.M. 'The noteal ere on two pages of paperi from ?yellow legal pad.'1 These notes are: being sub-1 initted. The notes reflect thaet, 'the President gave instruc- . tions to ? Mr. Haldeman 64 take certain actions of a pub--.; file relations character .whicif! 'related to. the Watergate 'cident. . ? ? ? ? PART II, Mitchell Phone q.. Conversation Item 1 (b) Of the?subpoenal 'relates to "telephone, cOnver71 ,sation of June 29, 1972, bd-I. tween? Richard Nikon and; '3ohn N. Mitchell from 6:08 to 6:12 P.M." ? ; -..; The Only" material relatirigi tti this conversation is a dic-; 'Wing belt of his recollections" ; "dictated by the President .ag: ; a part of his . personal' 'diary; [on June 20, '1972, at 830: P.M., in which the, President, ;referred to his telephone con-'1 versation With John N. Mitch- Aell. That portion of the ? die-' ,tating belt to and 'including the reference to the telephone. tconversation with John Mi 1Mitchell is being submitted.. That portion of the dictatt' Ping belt on which ..the :dent dictated recollections of; ;the conversation with John , N.. Mitchell, does contain re- ferences 'to .Watergate. I/ he President's comment's' , relating to the Mitchell versation begin at 2 minutes-1 seconds playing. time from,; the beginning of the dictating. 'belt and end At 2 minutes 45.i seconds 'playing time from', the beginning of the' dicta- tion. ? ' . PART III , : June 30 Meeting . Rept 1(c) of the subpoena: 'A related to a "meeting of June, .30, 1972, in the President'si office, involving; .Messrs. Nixon, Haldeman and , Mitchell from 12:55 to 2:10,i P.M. ? f. This- conversation, record-, 'ed on tape, ,occurred at' a, 'luncheon in the President's '"E0B" office, , attended bY President Nixon, John NI; 'Mitchell and H. R. Haldeman,. on June 30, 1972, immediate- ly prior to the announcement of the resignation of John N. Mitchell as. chairman.. of the Cominittee to Re-elect the President 'and the . ap- !Pointment of Clark MacdreV, or as his succesor. primarily 'tq the reasons the timing of, and the. pro,-'; ,cedures for, Mitchell's an-', ,nouncementof his resigna?,;!1 tion; and the choice and an-"L nouncement of his successor. There are a few' passing and: collateral references to Wa-: tergate whin 'are not sub; .stantive. There is an incom- ing telephone' call just to the conversation. At the.. end of the conversation, the,', President indicates his inten7'i tion to take a short nap. ? , The playing time for the; ;tape recording , of this. ';con versation, is approximately. . 1 hour 9 minutes and 44 sec' T. ends.: ? , . ; The Coriversatitni retorded. ,consists of advice to the*, ;President by his senior staff; assistant and his former At- Jorney General relating to 'matters which had a direct' ? bearing ? on the ? President's. ? ability .to operate his, office' iand conduct his Official ness at. that time.. The. con- versation includes discus-, , Mons of.highly personal mat.': ters. . ' The President belieVes that, the ''conversation is, subjecQ ;in its, .entirety to a Valid]; claim of executive privilege.; ;in order' to protect the con-,: ,lidentiality of the matters ',discussed. There is nothing, 'in this conversation "con-A :cerning possible criminal conduct" as to testimonY, ''concerning' which the Presi- dent Announced he Would not" invoke executive privi4' lege on May 22, 1973. . .. PART ?Ilr "?, P. Item '1 (d) of the subpoena' relates to a 'meeting of-Sep- tember 15, 1972, in the Presi-: dent's -Oval Office involving; 'Mr. Nixon, Mr. Haldeman andl John W. Dean 3d from 5:27" .to 6".17 P.M." . . . ? .A This 'conversation was: re'' drded on tape., John Dean 3d, then counsel to the. President, entered the PresW dent's Oval Office at approxi-- ' .mately 5:27 P.M. On Septem- ber lg, 1972, during a meet.: then in" progress between-, ;the President and his assist' Ant, H.R. Haldeman. He re-: Attained in the Oval Officer; .-as did the ,President and 'Mr," Until approxi- :mately 6:17 P.M.,- 'at .Which 'time; the President 'left" byl lautomobile for the. Washing ?...ton' Navy, Yard. ? .? ? k Earlier ,in the day, the' :grand .jury had yetnined idictments on seven persona; 2 in connection with the entry into the Democratic National . Committee offices at ,thd .,Watergate apartments. ; For the first approximately 1..'33 minutes and 9 seconds: ;after bean entered the Oval.; [Office, the conversation [volves subjects directly or; Indirectly related to the tergate matter. Included are, , -discussions of the- .indict- ments, the time of the pend-,' ing trials, the civil cases con-' ,nected with the incident and', 'potential Congressional corn-,' .mittedinquiries into the mat-i, ,ter,- as well. as ,press cover-.; age: of the matter: After the ; ,first approximately 33 ides and 9 seconds of the conversation, the . converse- tion turns to other subjects' Within the President's official ; 'cognizance not directly or indirectly related to the Wad! 'tergate matter, , The playing time for the. ?tape recording of this 'con,-; ,versation is approximately. :48 minutes 44 seconds. The' :only significant event is the '.;end of discussion of Water-I gate related matters approxi-' 'mately 33minutes and 9 ;seconds 'playing time from!. the beginning Of the reCord-' ? r, The President believes that, the conversation recorded, 'following the first 33 minutes,' ;9 seconds of playing time is;., subject to a claim of execu-:' give privilege in order to pro-.) text the confidentiality of the, 'advice 'and counsel provided to the President. ? ? ' '' PART V' ? ? Mardi 13 Meeting .Item i(e). of the subpoena; relates, to a "meeting. of,: March '13,- 1973,? in .the Presi-, dent's Oval Office 'involving' Messrs. Nixon, Dean' and Hal--; deman from 12:42 ? to 2:00! , P.M." ARMED FORCES JOURNAL October 1973 McCord Silenced ? ;IN AUGUST, AFJ published the first of what was planned 'to be . three articles by James W: McCord detailing the Nation's intelligence agencies and their conduct Of the Watergate affair. The first article, which was quoted in the inter- national press as well as U.S. news , services. and the Select Senate Com- mittee on Watergate, was probably the last. On 5 September, Judge John Sirica issued an 'order banning all public comments by McCord, who at the time was on a college lecture circuit. McCord has informed AFJ that he has inter- preted this to mean no written arti- cles as well and has asked that we withhold publication of the second article which he' had already sub- mitted to API. With' reluctance, AFJ has acceded to McCord's wish. - App,r0Ved-For Release 2001/08/07 : CIA-RD1-1(t,-01/4.32.KUU1oU2UUOU1-5 ? 'Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 NEW YORK TIMES 27 November 1973 MISSMOODS SAYS SHOUSED 'GAP' MAPE BY ERROR, [ President's Secretary Tells; t Court of Her Erasure in, Subpoenaed Recording ,NIXON HALDEIVIAN TALK , Sirica Gets Transcriptions: for Protective' Custody Pending Examination By LESLEY OELSNER ' Special to The New York Times WASHINGTON, Nov. 26? ' 1President Nixoh's personal sec- retary testified today that through some "terrible mis-, ,take" she had pressed the .wrong button on her tape ? recorder and thus', caused an 1.8-minute "gap" in one of the .subpoenaed Watergate tape, ,recordings. She said that she had told the President of the error min- *utes after it occurred last, Oct. 1 ? and that he had as-, sured her it did not matter. , "He said, 'There's no prob- lem because that's not one of, the subpoenaed tapes,'" the' secretary, Rose, Mary Woods;' testified in Federal Court here. Mr. Nixon did remark that "it was too bad," Miss Woods recounted. But he told her that ,he understood, she testified,' and said to her, "Don't worry 'about it." ? , Talk With Haldeman ? I ? ? The conversation whose 'tape !recording has . an 18-Minute erasure?or "gap," as Miss ? Woods insisted on describing it, ?was a discussion between Mr., ,Nixon and H. R. Haldeman, one`, of his former key aides, on June 20, 1972, three days after the. break-in at Democratic head-, quarters in? the Watergate' building. 7, The White House did not dis- close. the I8-minute gap oil the tape aintil list Wednesday. It , has. Maintained that it did ,not knew that the conversation in cniestiori .was covered by the subpoena until Nov.;14; a week earlier; According to the White ,Hotise,' there was an "ambiguity" in 'the, subpoena issued by the Ispoial: Watergate' prosecution for the President's Watergate- !related tape recordings. As 'a !result, the White House: eon- tends, the Presidential counsel; !first believed that the special 'prosecution wanted only the- recording of an earlier June 20 ' Presidential conversation?one: with John D. Ehrlichman, also, forther Nixon aide. ? Tapes Given to Judge' k The White House today turned over the disputed tape. record- ings and other materials to 'J Chief Judge John? J. Sirica the Federal, District Court here, who asked last, week, in the".3 wake of the disclosure of the i.18-minute gap, that they be glivetIst?dY to the court for protecel t' v pending examine-, tion by technical experts. ' With the material, the White' ?fHouse turned.over as well a 22- page "index and analysis" of What it was providing the court. And according to' the document, the June 20 conver- -satiort between Mr. Nixon and Mr. ',Haldeman included a ,cussion 'of. Watergate-related public relation's measures. e The White Muse was giving Judge Sirica Mr. Haldeman'S .'handwritten 'notes" of the meeting, the document said, and the notes "reflect that the President gave ' instrucions to Mr. Haldeman to take certain actions of a public relations character which related to the Watergate incident." The United States Court of Appeals here, which ruled in October that the President must comply with the subpoena, had left open the possibility that Mr.. Nixon could still make "particularized" claims of exe- cutive privilege regarding cer- tain portions of the material covered, by the subpoena. In its index and analysis to- day, prepared in accordance with ,the curt of appeals' in- structions, -the President main- tained that various conversa- tions covered by the subpoena involved non-Watergate mat- ters and thus were privileged. In discussing one of the dis- puted conversations, moreover, the White House said in the document that the talk should not be disclosed even though it involved Watergate. This was a conversation on June 30, 1972, by Mr. Nixon, Mr. Halde- man and John N. Mitchell shortly before the announce- ment that Mr. Mitchell was re- signing as chairman of the Committee for the Re-election of the President. "There are a few passing and collateral references to Water- gate which are not substan- tive," the document asserted. , Judge Sirica must now rule On?whether or not to accept the President's assertions of priv- ilege. Miss Woods testified today that Alexander M. Haig,' the President's chief of staff, had told her on Sept. 29 that she need transcribe only the pot, tion of the lune 20 tape cover- ing the President's discussion with Mr e Ehrlichman, / : The document presented by the White House, for its part, 'repeats the White House con- 'tention that it was believed "until Nov. 14" that the second portion of the tape was not under subpoena. The document also supports Miss Woods's statement that she reported her mistake immediately, saying, "The incident was detected and reported when made to the President, and shortly there- after to the White House coun- tel, J. Fred Buzhardt." At ?a briefing today, however, Gerald. L. Warren, deputy White House press secretary, contradicted ?these , statements. ..Mr. Warren said that the Presi- dent was told "shortly before 'leaving" on his recent Southern ,tri p that there was a problem, jwith the June 20 tape. When Nixon returned here, Mr: Warren said, he inquired about 'ithe problem and was told that ;there was an I8-minute gap. ? Mies Woods has been Mr: Nixon's secretary for 22,years, working for him and, when need be, fiercely defending him. Today, her face and voice seeming sometimes tense and at other times appearing to be Annoyed, she gave an account 'that observers Considered as favorable to the President as the situation allowed. , ? Transcribed Tapes ? She said that she was with the President at Camp David the last weekend of Septem- 'ber, and that her tisk was the .transcription of the tapes for his future reading. He listened to the June 20 tape for just a few minutes that weekend, she said, "pushing buttons back and forth." His comment, she said, was, "I don't see how you're getting any of this, it's so bad. She spent the weekend work- ing on the Ehrlichinan portion of the lune 20 tape, she said, and went back to the White House Oct. I with the task in- complete. ./ She was in. her office listen- ing to the tape and, waiting to hear some indication that Mr, Ehrlichman- had left the room, she heard the beginning of the Haldeman-Nixon ,,,conversation, she related. Then she said, her telephone rang. She reached to answer it, and, "through some error, in some way,". she "pushed .the record button down." Miss Woods's testimony about what followed was some-, what confused. She said first' that she did not khow whether, ( :3 Ishe' had also had' her foot 'on the foot pedal or whether the record button had instead stuck; later she said she "must have" kept 'her foot on the pedal: five minutes,". then than* that to "five and a half or silt her conversation lasted "four oV She also said that she thought! minutes." ; ? The machine she was using, introduced in court today, was a model called the Universal 5000 produced by Urer. , The "record" button is neit In the "stop" button. ? John Madaris, Chief engineer for the U.S. Recording Com- pany in Washington, which is the distributor of Uher tare re- corders, said it was "definite. fly" possible for Miss. Woods to have erased the tape. "She coula have rewound the machine at a vary high speed ;while the "record" button was down," Mr. Madaris saida "It 'would only have taken a min- .ute and a hai, to erase 18 min- utes of tape." A foot pedal presented in court this morning as the one used by Miss Woods was not the Uher model, which would have had to be pressed-for '18 minutes for an erasure. "It wouldn't make much sense" to use a different foot pedal with the singular ability to play the tape forward, Mr., Madaris said. "One of the main: attractions of the Uher 5000 is its versatility for transcribing.. It, seems ridiculous Tot to use. the pedal that can go forward and backward," he said.' Judge Sirica was plainly' elk.: turbed by Miss Wood's testi-, mony, and drew from .her the , concession that when she testi- fied before him on Nov. 8, she' had made no mention of the 18-minute erasure. He also asked Mrs. Vollner 'of the Watergate prosecution to read from the Nov. 8 transcript what Miss Woods had said about "precautions" she had taken regarding the tapes. "Everyone said to. me," be careful, Miss Woods testified, "I don't think I'm so stupid that they had to ,go over and ?oVer it. I used every possible precaution.", ' ? I "What precaution?". Mrs: V011ner asked then, . . "I used my head, the ,only one I had to 'use," came the ,answer., . Miss Woods IS, to tegify lagaih tomorrow.; ., Approved For Release 2001/08/07 : qIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 NEW YORK TIMES 29 November 1973 Anti-Erasure Safeguards [Of'Tap'ebeviCe Detailed, ? ? By VICTOR K. McEtHENY Special lo The New York Times 25 years experience as a secre:4 tary, appears to have overtid-+ den a standard protection Used' by secretaries Who 'are accitS4 totned to dekessing a ? foot-t, treale so that both hands are, free for ? typing a tape tranl; script. k ? ' , ; WASHINGTON, Nov. !The' tape recorder that Presi- dent Nixon's personal secre.; tary, Roe Mary Woods, haS testified he used to transcribe a conversation ' of June , 20, 1972, between the President and his former chief of staff, H. R. Haldeman, has b,uilt-in protections against inadvertent eratures. An independent examination and test with such a macpine today showed that to cause an , erasure, two simultaneOtit mistakes must be made, wheth- er the machine is operated by hand or by using a foot treadle. Experiments In using the ma- chine, however, show that the small, transformer - equipped, high-intensity lights that Miss Woods uses on he White House desk and typing table are ca- pable of generating the kind of sustained hum that was heard during the' 18-minute gap yes- terday when a copy of the tape Was played in Chief Judge John J. Sirica's courtroom. Miss Woods testified today, that she never used the Uher:: Universal 5000 tape recorder before Oct. 1, the day that Stephen.. Bull, a White House. aid, brought her the high fidel-: ity equipment, and the day that; ;she Isaid at. least four to five 'minutes worth of the gap was,; created. ( She repeated her contention' that she used the unfamiliar equipment, frequently inter- rupted by telephone calls on iseveral lines, In a state of fa- tigue induced by 29 hours of weekend work at Camp David' in Maryland, in transcribing a, 'nearly inaudible tape that in- cluded a conversation on June, .20,, 1972: between the Presi- dent and his former White 'House chief of staff,,H2R. Hal- deman. ? A section of the recording *as obliterated, Miss Woods testified, when, at the start of a telephone call, she inadvert- ently depressed the light gray "recording" key on the Uher's control keyboard, while keep- ing her foot down on the Fideli- tape FP-I0 treadle she was us- ing' to advance and rewind the tape for transcription., An independent test ? today showed that when the Uher is oparated as Miss Woods said,' an erasure occurs. By aiming her finger at the! dark gray. "stop" key and hits" ting the adjacent "recording"' key instead, Miss 'Woods, with '? 'Two-Button Treadle ' ? ? In other words, during tran- scription using a foot treadlei+ secretary need not touch . the control keyboard at all. To step the advance of the tape, all the settetary must do is remove het foot from the treadle. . ?' ? -I There is a similar "fail-safe'4 feature for most tape, recOrdn ers when they are operated: by hand., Both a ,tape-advant=! ing .and recording button usu- ally must be depressed. On the Uher; these keys are far enough apart to Mar:tally require Us- ing one finger of each hand. ? For most tape recorders, 'the foot-treadle for transcribing dries not involve recording' at all, ?but' merely advancing and rewinding the tape.' The treadle supplied by Uher has two but- tons, one for each operation. The Fidelitape has a large plate for advancing, and a project-, Ing, perpendicular rewind bat' just to the right., ? The treadle used by Miss Woods takes' only Slight pres-, sure to, operate. It is also easy' to release. During a courtroom demonstration Yesterday, after a simulated telephone call in- terruption, Miss Woods took 'her foot off the treadle 'quickly; 'indicating this 'may be a nat- ural reaction. n' Pbotographs r showing Miss Woods' seated at her White House desk and typint table, which were exchiited in 'court today, indicate \ that -Miss Woods had to stretch as she answered a telephone call 'on a, call-director ' at the upper left-hand corner. of her desk. :The indication Was that ?some contortion was needed to keep' the toe of a shoe on the tradle. Because Miss 'Woods recalls pnly a four4o-five-minute in- terval of inadvertent erasing .on Oct. 1, and because 'of .a slight change in the tone of .the hum about five minutes into the "gap," there has been speculation that there may have ? been two intervals of erasing. Little information about this 'emerged during to- day's testimony. - An. independent test today showed that both tones could have been caused by a high- itensity lamp that Miss Woods kept on ,her typing table. The lamp, called a Tensor 6500, contains a transformer that ernataa, an aleotrenie Interter- 'ence that can produce a hum la tape. ' Miss' Wopds testified ? today, 'that tapeslubpoenaed for Wat- .ergate investigation were in her ti.istody from late September to ? NEW YORK TIMES \ 29 November 1973 - IIIXON'S AIDE SAYS! ADDITIONAL TAPES1 BLANK SPOTS ? But Buzhardt Declares the Gaps of: Several Minutes Are lot Surprising' ' PROSECUTOR SKEPTICAL? ' -? ? !Spokesnian for White House4 Insists That? Subpoenaed Talks Remain Intact . , f? ? By LESLEY ?ELSNER ' ' Special ton, New York Times ? ? ? WASHINGTON, Nov. 28 lOne of 'President Nixon's attor.i "neyS testified in Federal Dis-? Arict , Court here today that I,there were a "number" of, !?blank sections lasting several. minutes . each on subpoenaed: White House' tape'ecordirigs. ? The attorney,. J. .Fred Buz4 4iardt .Jr.; termed this.. discItt-fl !sure unimportant, telling ? re-; porters at the midafternoon' +recess, "Don't get excited," and' testifying later that the exist-; ';ence of the "spots" was ?"not -particularly surprising.", ' ?Leonard Garment, the White r - Mouse counsel; also de-emplia- 4'size_cithe disclosure, telling thief Judge John J. Sided, who was presiding over the heanng, rinicf-Novinber, !Wildn'the' tines] tWere, duplicated. it . Ws not9 !dear ? frOm today's testiinony,1 ,whether , the entire 18-minutel ;gap was created during this' There has been speculation ; this week that Miss Woods.' ftnighthave caused the entire 18 ,minute gap .by inadvetently3 operating the rewind baron the I'idelitape treadle while the , "recording" key Was depressed; on the Uher machine. Presum- ,ably,, she would ave done this:: ,by shifting, her, foot on, ? the, treadle. ? In one test with the maChirte..Y'.. it was shown that 18 IninitteS" worth of tape recording at thejt Tate of:' one and Seven-eights'. .inches per second would have'' been erased by this method' in ;only 20 seconds. . ? ;??? Other experiments With the machine showed that 'this ?f Method' of erasure Produced-.1 variable,. high-pitchedl'whistele ; Unlike the one heard yester:-., day in 'halm ? SIrlea'a eenirt.' too, This variable whistle,was ' developed whether' or' not ?? \ transformer-equipped lamp near- the recorder was' produing ; ithe 'recorder was produing I electro-magnetic 'interference. ? lthat the. existence Of the bledit seCtions was a: "collateral" patter and that its significance :Would have to be determined i)v technical ? experts. Tonight the, White House press Office ,also 'attempted to ake clear that the "spates" ;?described by Mr. Buzhardt were simply blank spaces rather than ;"gaps" in which parts of con. Iversations had been pbliterated, 'Conversations Are Intact' ?."0n, the seven' t subpoenaed' '.conversations," Gerald L. War.: 4en, the deputy Spokesman said; the exception of the 18-, lininute gap [which has been! :).itider inquiry In ! court this, Week] "those seven subpoenae; ..,ienversations are Ihtact." But Richard Ben-Veniste, the! 'member of the special Water-4 gate prosecution force who was' 4tiestioning Mr: Buzhardt; noted! 'that he disagreed with Mr. Buz.! hardt let least about technical 'details of just what the blank spots showed.' !,. 1, :In response to Mr. Garment's Objection that the testimony , the blank seCtions ? Was 'collateral" to 'the . issue at hand; involying an 18-mitiute lapse, on one key tape, Mr. Ben. Yeniste spoke in.kclearly skep peal tone: "Apparently it's k coincidence' that Mr. Buzhard0 'first learned + of the existence the blank spots the same day; that he says he 'first learned! Putt the particular lapse under; :discUssion lasted a full 18 miti!!`! ttes Mr Ben-Veniste said. ' !'t ? Expert Questioned , '1, After he finished testifying, 'Mr. Buzhardt made* another un- ixpected ;disclosure. He said he "had been told that there was a Tremote" possibility that the !Material originally recorded on he 18-miniite segment that had ibeen obliterated could in, some '!way be. "brought ,otit.." ? In his testimony' earlier, he ad said that on Nov. 14 when 'he discovered the full extent lir the 18-Minute "gap," he ,asked ,'a .technical expert i.Whethet the Obliterated section ould be, restored. He went to It White House technical ?ex-. .Howard. Rosenblum . or. IN.S.A." [presumably the Na- tional Security Agency], and asked, "if there was an erasure, was there a process" whereby, the ?missing sound could be ?"brought out." . Mr. Ben-Veniste, who was 'pursuing a different point, did 'not ask whether Mr. Rosen- blum htad answered affirma- tively.' , After court,' however, Mr. Buzhardt was asked how Mr. Rosenblum had answered. ? t'Vety uuntlhelY." he new, But when he was asked if "It was possible, he replied, .!'It was remote." t. The., original_ recording are Approved FOr Release 2-001/08/07 : CIA-RDP77-0043,2R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 In" Judge Sirica's custody And are being guarded by United States marshals pending exam- ination by technical experts to determine whether they have been tampered with. It was unclar whether the experts would try the process that Mr. Rosenblum described to Mr. Buzhardt. ' Attempt Is Indicated It was also unclear whether; the White House had tried to restore the lost sections, ? al-, though 1 Mr. Buzhardt, in hig -testimony, indicated that the ? White House might at least have taken a tentatiVe first step. Just after his 'remark about questioning Mr. Rosenblum; he noted that he had tried t.6 "duplicate the sound" of the 18-minute. lapse, a buzzirrg noise, and this, possibly, was the first step recommended by Mr. Rosenblum. The purpose of duplicating the sound, Mr. Buzhardt indicated, Was to try to determine what could have caused the lapse. in the afternoon session, Mr. Ben-Veniste elicited a number of statements that add further to the confusion that has arisen since Judges Sirica began his inquiry into whether the Presi- dent was adequately complying with the Watergate prose- cution's subpoena of tape re- cordings and other materials bearing on nine specific Water. gate-related conversations. Mr. Buzhardt said under questioning, for instance. that he received last Aug. 13' the Samedocument that, he insisted, led him to conclude on Nov. 14, for the first time, that the prosecution subpoena covered the tape in which the 18-minute lapse occurs. 3 Days After Break-In That conversation 'was be- tween the President and H. R. Haldeman, then his chief of staff, in the Executive Office Building on June 20, 1972. In the conversation, the President, among other things, ordered "public relations" actions to be taken regarding the break-in three days earlier at Democratic headquarters in the Watergate complex here. A document submitted by the White House to the court on Monday indicates that the 18- minute lapse obliteration ,the discussion of the public relai bons action. . Mr. Nixon had talked with: Mr. Haldemann beginning about .11:30 A.M., after talking earlier* to another aide, John D. Erlich-- man. The prosecution subpoena' called for materials regarding 'the meeting on June 20 involv- ing Mr. Nixon, Mr. Ehrlich- mann and Mr. Haldeman from "10:30 A.M{ to noon (time: approximate)." 'Close Reading' Needed .; . The White House said it MAI [felt that the subpoena covered only the conversation between iMr. Nixon and Mr. Ehrlichman. Not until Nov. 14, the Whiten House has said, did it realize, that .the Haldeman-Nixon cont, irsation'WaS covered 'AST-veil) 1 Today, Mr. Buzhardt testi-1, fied that a' "close reading" ofi a prosecution memorandum de-,t scribing the nine conversations'f specified in the subpoena hadi led him to ' realize that thei Haldeman , conversation was; ,t overed. '.. . ? The memorandum states that Mr: Nixon "Met- with John D. Ehrlichman and H.. R. Halde- man in hit Old Executive Office Building on June 20, 1972,', from 10:30 A.M. until approxi-, :mately 12:45 P.M." ? It also; states that "Ehrlichman and; then' Haldeman went tO? see the; President." ,, ? i? Judge Sirica asked if a "closes ,reading" '*as really needed:! Mr. Buzhardt ,replied that it,I, Was because, as he saw it,; there were really two meetings' that day and -the , subpoena re-i ferred to "meeting." , Attached to Opinion ! ? Mr. Ben-Veniste pointed out! that the United ,States Court of Appeals for 'the District of Columbia Circuit attached the memorandum to its opinion last' Oct. 12 when it ruled that Mr. 'Nixon must comply with the subpoena. ? ; "And of course you studied that opinion?". the presocutor 'asked. ; "I read it, yes," the lawyer replied. i ? Beyond that, however,- as Mr. Buzhardt conceded, 'when 'pressed, the prosecution gave that memorandum to the -White House last Aug. 13. . ' Mr., Btizhardt's testimony about?the blank spots on vari- ous, unspecified tapes came after testimony about the proc- ess by which the White House made copies of the subpoenaed tape recording some two weeks ago, with representatives of both the prosecution and the White House counsel ? present. Question,, Is Posed ' 5 It came in response to ? a :question by Mr. Ben Venistei which, according to the noteS of the official court ,reporter, went as follows: "In the process of copying the tapes it is a fact, is it not, Mr. Buzhardt, that the tech.- nician involved, using an, instru- ,ment, was able to determine merely by viewing' the instru- ment while, copying that tape that there were substantial gaps on the tape which would have been inconsistent wtih the 'testi- mony about how the machinery operated, because it was voice- actuated machinery, and there should be no reason for silence on the tape?" . . '"I 'didn't attend ''the : copying, Mr. Ben-veniste," the witness replied. "I don't know. I was advised subsequently that there were spots on the?you' could tell from the oscilloscope that , there. were spots where there Were apparently no. conversa- tions on the tape." An oscilloscope Is an elec- tronic device that presents a visual. image of changes In a ;varying current, such, as those 'taused by ,sound.: . ?. . ? ',- '.. ?.i.* At that point Judge Stria tidied it POW, .. ? r 1. NEW YORK TIMES 26 November 1973 The Tapes" Dvalue.d Disclosure that another eighteen-minute segment' of, the subpoenaed White House tapes has belatedly been., found to be inoperative raises new questions about their , usefulness as testimony. Discovery of this "phenomenon," as White ?House' ; counsel J. Fred Buzhardt Jr. termed it, followed. earlier revelations that the first telephone conversation between' Mr.' Nixon and former Attorney General John Mitchelll ;af teethe Watergate break-in had not,been recorded and' that the tape had run out on a Crucial meeting between, Mr. Nixon and John Dean. The unaCcountably blank eighteen minutes eliminate. : the record of part of a conversation between Mr. Nixon. and ,H. R. Haldeman on June 20th, three days after the, break-in and shortly after the President's first post-' Watergate meeting with Jeim r%chman, 'Richard G.:; Kleindienst and Messrs. Haldeman, Mitchell and Dean:i , According to Mr. Ehrlichman's testimonY, Watergate and ,wiretaps were primary subjects of the tte An that pro- ceded the eighteen-minute blank in the Nixon-liakkrnani cenversation. The unrecorded Nixon-Mitchell telephone, 'conversation took place on the eVening of the satrie:day, These missing links, along with the non-existent Nixon-; , Dean tape of April 15, 1973, have sharply devalued, the: tapes as evidence of the innocence or guilt of. a .large number of prominent persons, including the President himself. In addition, , there are the following puzzling; ,phenomena: Miss Rose .Mary Woods, Mr. Nixon's, personal secre- tary, has testified that a number of, key tapes are rem, dered barely comprehensible by odd background noises,4. even though Mr. Haldeman had 'earlier' considered the' -recordings quite. adequate. ; . ? Former White House' aide :AlexanderButterfield has. a ? described the recordings as highly sophisticated, whereas'i Mr. 'Nixon .portrayed it as an/ inexpensive,- makeshift. Male Sony" setup.; No adequate' explanation has' been given for.the'lerigthY: !delays in turning the tapes over to the court'. i finally, and mOst.disconcerting,,there.,is the: fact that, ; an undisclosed number of vaguely,' dentified tapes has. tI been checked out for' unspecified periods of time in' the' absence of any discernible concern 'for Security.' Mr,' !Haldernan's testimony, for example, shoWs that some :of the ,tapes had been in his, possession both before and. after he left White. HOuse.employ. , Under. such circumstances; it is :not :surprising. that! '!'Chief District Court Judge John J.. Sirica, in ordering the, 'Jlapes to be turned over to' custody on Monday, ?said: ''of the latest revelation:'.. "This. is just another ?instance, 'convinces. the court that it has to take some steps,: , not because the court doesn't trust the White House or the President [hut because] the Court is interested in see-, i'Ing that nothing else happens.".', . ? , . ? ? ? ?? ? What has already happened cannot be .divorced from t:Mr. Nixon's .highly publicized "operationytandor.".The'l `'--President's counsel has conceded that Mr. Nixon, even.; ;as he assured the 'Republican governors that there would; be no further "bombshells," already kneiv, about ? the,! flank' tape. Nor has Mr. Nixon taken. the IOng;.prothised.1 Initiative of "full disclosure," even ;lifter:Judge sir* eStatedithat the court had no objections ' ? . . . , Devaluation? of the tapes' integrity; along :with .the t;tnisrepreSeritations contained Ili thh, Prea 1lflOio, pu..i " relationa oftailve, tiil further erodes White House ieredibility. ? ' Approved For Release 2001j08A7 : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASHINGTON STAR 30 November 1973 r I By Oswald Johnston Star-News Staff Writer The Central Intelligence Agency has some' three dozen. American journalists working, abroad on its payroll as undercover inform,' ants, some of them as full-time agents, the, Star-News has learned. - A After CIA director William E. Colby ordered: :a review of the practice two months ago, agen- cy officials found the names of some 40 full- time reporters, free-lance journalists and cor- respondents for trade publications in their files, as regular undercover contacts who supplied!, information to agents in the field and who arei regularly paid for their services. ? The use of foreign correspondents by the CIA' has been quietly suspected ? and feared ? for; 'years by legitimate reporters whoP have, ,worked overseas. But the suspicion has never; been verifiable until now. The facts were made known by an authoritative source. - 3 The continuing extent of the practice and its? 'wide scope, which is believed to have been 'scaled down since the Cold War tensions of the. 1950s, was apparently a surprise even to Colby, who last month ordered a significant cutback' in the CIA relationship with journalists con- nected with major news organizations. NO LONGER to remain on the agency payl roll is the one category of journalist-agents; .whose continued existence could most serious- ly compromise the integrity' of the American' press in general and possibly cripple its ability to function overseas. To be phased out is a small group of no more , than five full-time staff correspondents with ?general-circulation news organizations who function as undercover contacts for the CIA and are paid for their services on a a.egular contractual basis. It is understood that three of these agents have maintained their CIA contacts without , the knowledge of the news organizations in- :volved, but that the CIA sideline of the other two is known to their civilian employers. - Sources refused to identi- an independent press is a' ly any of the reporters in- subject fraught with contro- volved, but it is understood ?versy. Nevertheless, he has ap- proved explicitly the contin- ued maintenance of more than-30 other CIA agents abroad who are not strictly newsmen but who rely on some kind of journalistic', "cover' 'for their intelli-' gence operations. ttng thOoe to be main; elettl? is by far the 'MOO category of journalist-* agents: A group consisting of about 25 operatives scat-, that none of the five agents who are being cut off were regular staff correspond- ents of major American daily newspapers with , regular overseas bureaus. COLBY IS understood to' have ordered the termina- tion of this handful of JourntilioNigonto in' the All# realization that CIA em- :ployment of reporters in a =don which prides itself on tered across the globe who appear to the world as free- lance magazine writers, "'stringers" for news- papers, news-magazines and news services, and itinerant authors. (A string- er is a journalist, usually self-employed, who offers dispatches on a piece- ;work basis to news organizations which do not .have regular staff members, in the stringer's city.) Agents in this category? are not regularly identified; with any single publication,' and most of them are full- ;time informants who frank? ly use their writing or re-, 'porting as cover for their 'presence in a foreign city.; Most of them are American ;citizens. ' MOST ARE paid directly: . and regularly for services ' rendered, but a few of these semi-independent free-1 lance writers occasionally draw on CIA funds to pay put-of-pocket expenses for trips in which the agency ,had an interest or for enter- taining a useful contact. A second group of over-1 teas correspondents whom Colby intends to keep on the payroll consists of eight' writers for small, limited-' circulation specialty publi-; cations, such as certain. types of trade journals or' commercial newsletters. It is understood that most in this group operate as paid :CIA informants with the :approval of their employ- ? ers. s. Colby also intends to keep up:the quiet, informal rela- Itionship the agency has :built up, over the years with' 'many reporters working at home and abroad and edi- tors who for their part maintain regular contact with CIA officials in the routine performance of their journalistic duties. ' No money changes hands under these relationships, either as occasional pap.' ment or as reimbursement for expenses. In !general, the relationship is limited to ,occasional lunches, inter- 4,10ws of teltitillefib tibbiotire *Wens &whip which Infers, mation would be exchanged or verified. Each side' understands that the other, 6 is pursuing only his dwfil tasks. . IN SUCH a relationship, the reporter would be free. to use the information he gained in a news story, and ,occasionally the CIA agent !might Make use?of what he, .has learned from the re-. porter. Very likely, the CIA' .official would report the gist of his conversations' with the reporter to his mi. 'periors, orally or in a writ-. tten memo.. In this group, sources, ,indicated, the CIA includes.' , a Star-News reporter whosei :name apparently found its' way into agency files as a: iresult of contacts of this; ,professional type during as-"; signment overseas for thel .Star-News. .` (Star-News editors bave discussed this matter with? the reporter and other, sources and have found no *evidence to suggest that. either the reporter or this, !newspaper has been com- promised.) . , Veteran intelligence ,operatives are understood to look with mixed feelings on Colby's decision to break off CIA contacts with legiti-, mate full-time correspond-a ents. On the one hand,.t %journalists operate under* 'conditions that, in the eyes, of a professional cpy, pro-i Pvide a natural - 'cover,",, combined with unusually good access to people and places abroad that would be unavailable to persons in, other professions. THE USE of journalist- agents is known to be widespread in Communist-, 'bloc countries where the press is government-con-'' .trolled, and during the ,1950's the Tass correspond- ent who was also a Soviet agent was almost proverbi- al. At the same time, agency, officials are known to recognize that CIA penetra- tion of the American press,, If discovered or even sus- pected to exist on a wide, scale, Would further dam- Atte the CIA's chaity puhilo *age at home and could. 'seriously compromise the, reputation of the American, ? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 press.. . For both of these reasons,' sources were extremely, reluctant to give any details of the operations in which journalist-agents were in- volved or to discuss their assignments in any but the mot general way. Sources. who verified the existence of the practice refused to reveal how much the agents, were q)aid or where they' have been deployed. Colby himself is thought ' to be tolely responsible for the deCision to cut off the ,CIA relationship with full- time staff correspondents for general news-gathering organizations. DURING his Senate con- firmation hearings last summer, Colby promised in the aftermath of the. Watergate-related disclo-' sures o domestie politica2 espionage that he would .take pains to operate "an 'American intelligence men- - that is, one with operations compatible with ,a democratic society. Colby's cutback on CIA 'use of the press is under, 'stood to have been gov- erned by that promise. Nevertheless, Colby has, privately justified past use .of the news media as agen- cy cover by stressing that newsmen operatives were ? not as a rule used as vehi- des for planting propagan- da. As a matter of standard operating procedure.' sources insist, an agent op-' crating under cover as a freelance writer or as a staff Correspondent for a newspaper or news agency almost never had his news stories or articles "criti-, oiled" by his case officer. While propaganda admit-, tedly has been an important part al eelandestine operatio:as abroad, that, function has been kept !separatt. r m the. ieutini 'running of agents, even' though both assignments belonged to the agency's Clandestine Services, under ,the Operations directorate. ACCORDINGLY, the extensive network of dummy foundations through. ;which the CIA was revealed in 1967 to have funneledt !cash to such publications as ,Encounter magazine or such organizations as the 'American Newspaper Guild was not related to the use of newsmen or writers as intelligence operatives in. the field. If anything, the use of . newsmen in this way seems . to have been carried out at" the. discretion of station chiefs abroad, with little or: no central oversight. Until late last summer. 'neither Colby himself nor i the top officials in the , .Operations directorate had: :any precise information ,ho.v many clandestine . agents were currently op- erating under journalistic' cover. ? During September, in the: aftermath of revelatiol. .that the Nixon administra tion used journalists as paid. . political spies during th'4' !1968 and 1972 presidential campaigns, and in response,: tto queries from the press, 'Colby ordered an in-house.;, investigation within the 'Clandestine Services to find: out exactly what the situa1. 'tion was.- A final reason for prcsa :curiosity on this point; . which in turn spurred Colby ' to order the Operations directorate to search itsi :files, was tt 'published; :disclosure that Seymour K.' Freidin, a code-named, ,"Chapman's friend" of tli& 1972 Nixon campaign, regn- larly passed information to the. CIA when working as a .syndicated columnist in Eu- rope during the ' Approved For Release 2001/a/07 : CIA-RDP77-00432R000100290001-5. Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ? WASHINGTON STAR-NEWS Washington, D. C., Thursday, November29, 19.73 By Dan Thomasson Scripps-Hosvard News SC:ViCO The mysterious "national security" matter that ,President Nixon has said he hopes to keep secret in-1 volves a covert operation by the White House "plumbH ers" to stop a threatened leak of highly sensitive infor-' illation gathered about the Soviet Union. And some who know about the matter believe disclo-` ,sure of its details ultimately would endanger the life of a U.S. intelligence source close to the highest Russian' ?1 official circles. 1. "I HAVE NO DOUBT that it is highly likely a life; ;would be snuffed out," said one source aware of thei operation. "It would, in the words of the CIA, put an! individual in 'extreme prejudice'." ... Former Atty. Gen. Elliot L. Richardson gave a hint. Of this in May during confirmation hearings before the! Senate Judiciary Committee. Explaining why he had, omitted certain passages from notes he had taken on a; meeting with Egil Krogh, former White House aide and: "plumbers" chief, Richardson said: 'They (CIA) informed me that the words left out there are still subject to classification, because their' disclosure would prejudice an intelligence source."'. Richardson Richardson said further: "THE OMISSION . . . does refer to a genuine tia:;1 tional security item." Government officials aware of the various facets of*, the cvvert operation also agree that threat of disclo- sure that the United States. possessed such sensitive ? information on the Soviet Union ? and not the leak of ? the Pentagon papers or the U.S. position on the strate- gic arms limitation talks ? was the real reason for formation by the White House in June 1971 of the now ? defunct "plumbers," two of those members later par-: ticipated in the Watergate break-in. 0 Although most of those informed on the matter con- tend its disclosure would help the President's case in the Watergate affair, Nixon has steadfastly refused to :do so. THESE OFFICIALS say it would legitimize the for-I mation of the "plumbers" which apparently came 'about because of a ban on the CIA's becoming involved in domestic intelligence activities and the refusal of, the late FBI director, J. Edgar Hoover, to cooperate' with the White House. Nixon referred to the undisclosed national security', problem 10 days ago in an appearance before the Asso-; :ciated Press managing editors in Orlando, Fla. He said there is a matter "so sensitive" that the leaders of the special Senate Watergate committee,had; , decided "they should not delve further into it." ? "I don't mean by that that we're going to throw the. cloak of national security over something because. we're guilty of something," Nixon said. "I'm simply saying that where the national security would be dis- served by having an investigation, the President has ? responsibility to protect it, and I'in?going to do so." EVEN SUCH Nixon adversaries as ousted special Watergate prosecutor Archibald Cox and Senate Wa- tergate Committee Chairman Sam J. Ervin Jr., D- N.X., consider the matter an authentic national securi- ty problem. Ervin refused to permit the committee to probe more: 'deeply into the operation despite contention? by Sem Howard H. Baker Jr., R-Tenn., committee vice chair- man, that it was a vital "missing link" to the overall 8 Watergate investigation. - Cox decided not to seek federal indictments against ' ,Krogh and his co-commander of the plumbers, David ;Young, for the burglary of the office of Dr. Daniel Ells- berg's psychiatrist because to do so might expose the ;"national Security" matter. Although Cox could see no 'direct link to the break-in and the classified operation, ' he feared that defendants would use it as part of their defense. The new special prosecutor, Leon Jaworski, howev- er, apparently is moving ahead against Krogh, Young, and former presidential adviser John D. Ehrlichmani ? IN T'HE Ellsberg matter. Sources close to the situation 'say Jaworski believes he must prosecute and then cross. the national security bridge when he comes to it. THERE HAVE BEEN reports of "eavesdropping" in" the Kremlin. And the CIA is reported to have been in- volved in the bugging of the Soviet Communist party; !leader, Leonid I. Brezhnev. Information about the Brezhnev affair, sources say,,. iis contained in a 22-page report on CIA activities that ;has been put together for a member of the Watergate :committee. But those aware of the "plumbers" operation say it ' did not relate directly to this but to "an individual" who? the CIA had tipped the White House ? would be in danger of elimination unless something was done to, ;stop the threatened leak of some of the information he ,was passing. 4 ; At least one government official informed about the operation contended that not just one but possibly i "number of persons" could be harmed by disclosure of ?? the secret operation. 1 "There are pbople here whose families and friends,. t still are in eastern European countries and under Rus- sian control," he said, without explaining. THE FIRST public indication of the national security Foperation came last summer when Ehrlichman, in ; - going over several known acivities of the "plumbers,"' :said there was another matter too sensitive to discuss. A piece of that information previously had come to the special Senate Watergate committee's Republican investigators through an undisclosed source. When Baker pressed to know more, White House attorneys , briefed Ervin, Baker and their chief counsels, Samuel Dash and Fred D. Thompson. Since then Baker and others, including acting White House counsel Leonard Garment, have urged Nixon to make it public. 4- While some officials believe Nixon has refused be- cause of the ultimate threat to the intelligence source, !others believe disclosure could bring about eventual revelation of other activities of the plumbers along (lines of the Ellsberg break-in. . Another of those informed on the matter who ha's- ;been.highly critical of Nixon stated: "The only motivated." that makes me sympathize at all with the President's plight is the fact that, in this at least, he is sincerel,' ; BAKER said yesterday before leaving for Pueriti1 :Rico, that if the national security matter were shownl to be related to the Watergate investigation, "then I've' got a problem." ? ..r1 7i Baker also said he told the commifte that he .bei: Heves the possible inVolverneht of ttio qA4oplies Mt* tig Nelda" into the breoh4ri Itself deemed more levee' He refused to elaborate on what evidence he had, Nit Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ' Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ? said there was "a little more" thttwhat was'eontainert ing," Baker said of the Watergate investigation in gen- eral. "I'm not sure we can put it together," because of this major "missing piece. ' ,.: COLUMNIST Jack Anderson wrote Tuesday that an , l'investigation of the White House plumbers, who have ? been charged in connection with the break-in at the of- fice of Ellsberg's psychiatrist, "might reveal that the. Fentral Intelligence Agency eavesdrops on Kremlin WASHINGTON STAR 20 November 1973 'leaders." In an interview with Richardson Tuesday night, ABC talk show, host Dick Cavett asked whether the matter referred to was whether the CIA had bugged the Krem- lin. Richardson did not respond directly. ? Asked about the possible taigging of the Kremlin, a .? press spokesman at the Sciviet Embassy said, "We i 'don't have any comment on that . . . Watergate s the internal business of the American people and we frain from comment." ' >. , By Barry Kalb Star-News Staff Write,' A genuine national securi- ty, matter raised by the White House last summer ic so sensitive it might bar future prosecutions involv- ing the secret "plumbers" operations, former Atty. Gen. Elliot L. Richardson believes. .. ' Richardson told a re- porter yesterday that infor- mation from special White House counsel J. Fred Buzhardt was so persuasive that he and former Water- gate special prosecutor Archibald Cox had been prepared for the possibility that they might have to drop indictments in the case. One informed source par- tially confirming Richard- :son's statement, said he' was confident that Cox "would not have brought any indictments which he ? thought would fall." He indicated that Cox had tak- en the matter seriously. In apparent corroboration of this, it was learned yes.' terday that federal indict- ments \ in' connection with the plumbers' 1971 burglary of Daniel Ellsberg's psychi- atrist's office have been held up while the Watergate special prosecutor's office studies possible conse- quences to the allegedly sensitive matter. THE PLUMBERS were a specialyhite House investi- gations unit so nicknamed because they were assigned to plug news "leaks." ' Richardson said the secu-, rity problem persists for *Cox's _successor, ,Leon A. Jaworski. "Jaworski, if he ever indicts, might have to '(drop the indictments) ? 'It's that genuine," he said. While nobody contacted Would reveal the nature of this matter, a lawyer for ,one potential defendant said Ellsberg was thought to. have had access to informa- tion about it during his ten-: ure on the National Security Council, and later at the. Rand Corp. The White House knew at, the time of the burglary,: that Ellsberg had given secret Pentagon papers about the Vietnam was to the press, and the White House also had information that Ellsberg had given the documents to the Sovieti Embassy here, the lawyer said., He said the investigation, :of Ellsberg, which Presi-' dent Nixon has admitted': ordering personally, was, ;aimed partially at deter-,' mining whether Ellsbergi . had given information on. the sensitive matter to the 'press, the Soviets, or any- body else. ? ; IF MS client is indicted, this lawyer said, "I would Immediately subpoena cer-, tam n documents" which he. said would show why the,4 Ellsberg operation was au- thorized and what its full' extent was. ' Rather than allow, infor- mation about the allegedly!, sensitive matter to be intro-if duced at trial, he predicted, the White House would re- fuse on national security grounds to give up the docu- ments, and Jaworski would, be forced to dop the indict- ments. , President Nixon said at his Saturday night press conference that the chair; man and Vice chairman of the special Senate Water-) gate committee ? Sens.: Sam J. Ervin Jr., D-N.C.,; and Howard H. Baker Jr.,' R-Tenn. ? were aware of a highly sensitive national, security Matter in connec- tion with the plumbers and had agreed not to pursue matter about which Rich- ardson had been informed. A spokesman for 'Jawor- ski, reached yesterday for comment on Richardson' discloevre, replied that "Mr. Jaworski has received a briefing from the White House staff on some prob-,! 'erns they see on the ques- tion of national security." The spokesman said he, assumed the allegedly sen- sitive matter was discussed,' but he said that Jaworski,: like Cox, has not discussed, details with anyone on his staff. Richardson said that ' he had told Only one mem- ber, of his Justice Depart- ment staff about the matter. COX REACHED at hiS: home in Brooksville, Me.i; refused to discuss the situa= tion. He said, "I just decid-; ed to make it a general rule that I won't say anything"i about investigations fore merly under his direction. Richardson said a press report last Friday saying he: and Cox had been pressured by..Buzhardt not to indict certain former White House aides was inaccurate. The aides mentioned in the re- port were John D. Ehrlich-, man, Charles W. Colson'and; Egil (Bud) Krogh Jr. "It's not fair to Mr. Btiz-; hardt to Say that he put' pressure ,on me," Richard- son said. ? "Buzhardt had brought to, my attention a very signifi: pant national security as-, pect of the situation . . . a: problem that could arise if 'asserted by a defendant,". he continued. "It was not a situation peculiar to any' particular defendant. ,He did not mention any particu-, lar'names." A Member of Cox's for- mer staff agreed with Rich- ardson, saying Buzhardt had not pressured Cox not ito indict specific individu- plumbers, ail fttt," Riche! furdson said. r, HE EXPLAINED :.hat :anyone indicted in comae,' lion with an Mega! opera- Lion, such as he Ellsberg burglary, could attempt to disclose the allegedly ceesie tive matter "te establish the everall' legitimacy of what; they did." ? 14e said the prosecutors at this point would have to :consider the possibility that ;"the national interest at stake (in the operation). .creates an, overriding dee lease . . . to an otherwise' Illegal act." ? "It would be a very tough' 'call, especially in the pres *ern circumstances," Riche ardson said. Krogh, head of the, !plumbers; _former team members David Young and IG Gordon Liddy; and Ehr-' Iichman, to whom Krogh: reported, have already been' indicted on state charges byi California grand jury...i I They are charged with the: (September 197.1 burglary of the office of Dr. Lewis; Fielding, then' Ellsberg'd .psychiatrist. Krogh, Liddy and Ehr-/ lichman apparently risk; being indicted by a Jawor- ski grand jury on federal: 'charges arising from the: same incident. So do two of, the original Watergate dee fendants, Bernard L. Bar- ker and 'Eugenio R. Marti- nez; a friend of theirs, Fee lipe DeDiego; and Colson. In September, attorneysl 1 for Colson, Barker and; ? ,Martinez said publicly that indictments were imminent and that they expected their !clients to be indicted. Bute those indictments have been held up without explana-; Hon. ACCORDING to informed .sources, assistant special. AIL prosecuter ivierd. It could not be determined ? But If no names were' 'till' head of the Plumh?r?? whethet wit, wall the ante Inentioned, uninvolved the) sInvestigation, has been told. I d sensi Approved For Release 2001/08/09 : CIA-RDP77-00432R00010tiNiddi-V ege IY Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASHINGTON POST k 17 November 1973 Afire matter?although he' has not been given details? and has been told it poses a 'potential threat to any in-i 'dictments from his task? force. f. , ' He his therefore deferred' the indictments while he studies how the issue might be raised, what his probable' respobse would be, and what legal alternatives ?would be available to pro- tect his indictments. Questions about what constitutes a legitimate na- tional sepurity matter, and how far the government can ,justify iStherwise illegal acts-by claiming national 'security, have been hanging over the Watergate cases, since the President first. raised the issue last May. In addition to his Califor-. :nia indictment, Krogh has been indicted by Merrill's task force for allegedly/ ;lying to the Watergate., grand jury last year con-, :cerning thelravels of Libby and former plumbers mem- ber E. Howard Hunt Jr. Krogh's attorney has argued that be lied because; .he was under strict instruc-, tions from Nixon to main-;1 'tam n secrecy about the plumbers' activities. But` U.S. District Judge GerharM A. Gesell rejected this' de- fense last week. THIS RULING seemed to:, leave Krogh with little or no firm defense to the charge .and raised the possibility that he might therefore seek a deal with the prosecution and, in return for full coop-; eration in the plumbers in- vestigation, might be al4 lowed to plead guilty to a, less serious offense than lying to the grand jury.. Krogh, Krogh, it is understood, might be able to corrobo-,1 rate testimony by former) White House counsel John W. Dean III, who told the! Special Senate Watergate committee in June that Krogh had said his orders, for the burglary came' "right out of the Oval Of- fice." ? The President has hotly; denied that he knew of the , burglary in'advance, and' has repeatedly labeled it ,"illegal." f A source close to the situ- ation called it ironic that: the White House, by citing,. "national security" often in discussing Watergaie, has created doubt about all such, claims. ? "Here turns out to be a - situation that clearly did! Involve, and does involve, a -matter of national securi- ty," this source said. "But the lik belle' that it will be v gone .ed at this point has to hen." NEW YORK TIMES .26 November 1973 ol y, Helms Deny TE HOUSE UNIT 'Forekhowledoe atergate Entry ? i 4' ' 33y Laurence-Stern f, i., Washington-Post Staff Writer i ,The current and fornier di-,, !rectors ,of the Central Intelli7 , Once Agency., denied to Sena- 'fin'fal reluetiOners that they ' had any 'advance knowledge of' lettietWatergate burglary. i valte. issue waa opened ? up ;during a Senate Armed Setv- Pes Committee closed hearing Testerclay to hear testimony, -by free-lance writer Andrew tt7George, and by CIA three- ;tai-'William E. Colby. ? , .13ut 'Colby. did acknowledge ;tli.at:. one' of the , convicted i'1.4tergate conspirators, Euge- 'pip Martinez, :alerted .the CIA to E. Howard Hunt's presence ? ,111?, Miami late in 1971 'and 'gain in: March, 1972. .,At the time' Martinez was ,working for Hunt's burglary :igitpi, which had-already bur; !glarized the- office -of Daniel 'Ellsberg's psychiatrist, ? and 'Martinez 'was , also employed ',ea a .,contract employee of the . CIA. ' . ? ? ? . ' - ' . a ,,Colby's allusion to -the Mar- tinez incident Was made 'in' a ..written response to a series of questions by Sen. Howard : Ifaker - .(R-Tenn.), vice ;chair, -man of- the Senate 'Watergate committee.- -?, According to Colby's ac- count, Martinez advised a CIA ,Miami field representative of Hunt's whereabouts and the ,rop.ort was passed on to CIA headquarters. -, . . CIA headquarters, said Colby, told the' Miami supervisor that "he should not concern himself With the, travel ' of M. -Hunt Who was -an employee of the White House undoubtedly on domestic , White l'Imise busi- ness of no interest to CIA," ac. fording to Colby's latest- state- ,*ient. -'s' 0 . . p This incident 'occurred- se, ' eral months after the +CIA erminated technical -assist; ince 'to' Hunt' including the 'supply of spy -paraphernalia, ilthidit was used in 'the Ells., perg burglary. CIA officials said they, Cut off Hunt in 'Au- fuft, 1971, because they came o ',the' conclusion that, the re- 'Otihts ,, were , linprpper?even Arh,Sigh they: were inade Under tr,Bite House ausplees: " ? "'. X:Itne of the allegations made tgiSt. George, in att article in , tre . current liarper's:??maga Vlitie.,As .that Martinez tvas se';' etly reporting to, the' CIA on e actiVities..-cr .. the.. White, -Ilouse bbrglary teeni under. Ilunt'i stipervisin;t: ., ., . ,r.. 44 g/ S ?.ik : l A RICHARD HELMS , . . former CIA, director ? This was denied by Colby and by Helms, in a Separate Written statement. Helms also denied a claiml bY St. George that he had a conversation with a CIA watch, officer the morning after the Watergate break-in acknowl-, edging that he was tipped off to the operation. , ? The St. George ' article claimed the watch , officer called Helms on the morning' of June 17, 1972, and told him of the arrest 'of "the White House crew." It 'quotes Helms as responding, "oh, well, they finally did it." Helms' statement, released -Yesterday by-Sen. Stuart Sym- ington (D-Mo.), said: "I am prepared to swear that ho such converSation ever took plate." , ? ' St. George invoked the First Amendment 'in refusing to identify his source for the re- port during yesterdays execu- tive session, according to Sym- ington. ? ? " The free-lance 'writer,'a self- described adventurer with. a heavy Hungarian accent, said he would consult with officials of,- Harper's before returning td testify before the Senate committee next Wednesday., St.? George was interviewed at length earlier this Week by Baker ,and Senate. Watergate committee minority counsel Fred D. Thompson, Baker has 'displayed a per- sistent interest in?the question of -possible CIA . involvement In Watergate. Symington, on the' -other hand, 'has been staunch defender-of Helms foe, having iiIthstood White House' pressures to Involved CIA in the Watergate cover-Up. , 10 3AKESONNEWLIF - ? .c.,.4 tffice of Communications li, Had Seemed About to BO, ;?. 0 1: ,a Watergate Casualty By JOHN HERDERS .1 Special to The New York Times i WASHINGTON, Nov. 25?, For several months this year it appeared that the white 'House Office of Communica- ,tions, the touch and ready operation that Charles W. Col- son used last- year to promote Richard Nixon's Presidency, was about to become a casualty, of the Watergate scandals. ; Critics of the Administration; had charged that the office" was too much of a propaganda operation for democratic Gov- ernment, and some of the Presi- dent's advisers thought that it should be abolished to show that a new order of staff oper- ations had been established in the wake of the Watergate dis- closures. Now, however, the office has taken on new life and has a prominent role in the defense of President Nixon against de- mands that he resign, although ,it does not command the au- "thority that it did befort the ,White House was weake?ied by Watergate. , Among other things, the ot- fice is directing a surrogate program, similar to that used last year when Mr. Nixon was running for re-electioni under which various officials in the Administration are publicly speaking out in defense of the President. ' 'Director Gets Limousine Around the White House, where there is acute sensitivity 'to status symbols,, the view that the office has been sal- vaged is bolstered by the fact that the acting director, Ken W. Clawson, was recently assigned a limousine under Glass A priv- ileges. ' . Continuance of the office fol- lowing the shake-up of the White House staff that began in the spring is seen by some ? observers as one of a number of signs that little has changed in the way the Nixon White tHciuse is run since the depar- ture of the President's two 'chief aides, H. R. Haldeman and John D. Ehrlichm, . The office, which operates separately from the White House press office, is unique to the Nixon Presidency. It was ,established by Herbert G. Klein, who had the title of Director of Communications for the Est cu- tkve Branch, when Mr. Nixon became President. ..,.liowever, Mr. Colson, a par- eticbarly ageressiVo ?resit:101'10Si assistant, took dyer. tlie) officio Mr. Rinin with the title but little authority and tied it last year as an instru- Approved For Release 2001/08/07. : CIA-RDP77-00432R990100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 mat for 1'e-election of "The 'Ptesidents One of the effort!' seta, s the eurrogate program, un- whith Cabinet member)) tilld other officiels were sent atound the country making speeches for Mr. Nixon, who did 'Me campaigning on his (tn. ,Mr. Colson left the Adminiss tfation early this year and Mr, ein resigned In August, leav 4ftfgMr. Clawson, who had the title of deputy director, in fellarge. He operates with itaff of 10 out of a suite of of, libel overlooking the white .,House in the Executive Office The 37-year-old Mr, Clawson, di former reporter for The Ilfeshington Poet, is a chubby Man with owlish eyes and a 'reispy voice. He is an un- 'abashed partisan who believes :14 the hard sell and the bare- riOtucidee attack. A few daye , when he was filling in 'ring an emergency at the Fhita elouse press office, he iked into a group of report- s and sang out: ,"Does anyone want a piece of Chuck Conners?' was his wny of asking anyone wanted to interview He actor, who was there to set e President before visiting ssia and the Soviet leader id I. Brezhnev, who had Wen di liking to Mtn list auras ter in San Clemente, Calif. When someone remarked Atiet he had never heard "such blatant public relations ealea etch," Mr. Clawson said he kild not care, that several tele- :vision and radio interviews had sfesuited from it. In this fashion, Mr. Clawson .i hat spring was running a cam- :paign to hold the line against ccaigressional moves to end ;President Nixon's impoendment cif appropriated funds, deploy- ing high officials throughout the executive branch as speak- ers and Coordinating publicity among Government public rela- tions agents in the departmente 'and agencies. This effort faded after the ? Watergate disclosures, Now Mr. Clawson is conducting a similer If less authoritative effort in defense of the President. In ad- dition to scheduling Administra- tion speakers on television arid radio programs, Mr. Clawson's ,office is mailing out Informa- lien and stigeested lines of at- tack and counterattack to ,department and agency heads. Some Cabinet members, tsk- h ty threw the materiel awaY iti advantage of lessened W ite House control, have said. t 'and put What they wanted in epeechee. But some of it made* the public in one forth or ed.; BALTIMORE SUN 29 November 1973 Hunt is reported staying at Holabirci ? Washington (Special)?E, Howard Hunt, Jr., who Novem- ber 9 was sentenced to a mini- ? mum of two years in Jail for his participation in the Water- gate burglary, has spent some gime since sentencing at Fort (Holabird, Baltimore. It could not be determined Immediately here if the time he has spent at Holabird, which Is nbt a formally desig- nated detention center, counts toward his sentence. Hunt was ittaying at a special "site" there yesterday. Treatment of Hunt since his gentencing appeared different ,from treatment or the five other men sentenced with him. 'According to Larry Taylor, an :Information official at the Bu- reau of Prisons in the federal 'Justice Department, four of ,thent?Bernard L. Barker, itrank A; Sturgis, Eugenio R. *artists and Vireo R GOile *gr. ordertd to *be re- manded to detention centers two weeks ago. The fifth man, James W. McCord, Jr:, was given 15 days to get his affairs in order before starting to serve hig time. Mr. Taylor said, however, that orders to remand Hunt to a minimum dentention center in Allenwood, Pa. were signed only yesterday. The delay, he said, was because Hunt had been needed in Washington for. questioning in other aspects of the Watergate prosecution. i Mr. Taylor would not con' firm that Hunt had been in Holabird. He said, however, that Hunt had been in the custody of United States mar- shals in the Baltmore-Washing- ton area since sentencing. Officials at the Marshals' of- fice here promised a statement on the matter in response tb *dee from the press, but late eaterday had not ddliu ered WASHINGTON YOST 22 Novembtit. 1973 Helms Faces New Qua: ? ? ? By Watergate .Probers'''', By Laurence Stern Washington Peat Staff Writer Fainter Central Intelli- glary team and the Nixon' igeneo Agency Director Rich- re-election committee within ard Mi Helms is returning to a week after the breeloir, ;Wasliiegton soon from his post In ,Iran for another. :round' of testimony on the ligenee's role in the Water- gate sandal. ' return visit has '"no Connection" with State Department business. ac- cording to State Department 'officials. But the Wetergate Sopecial prosecutor's office is -undeestood to want to inter- .view the former CIA diree- tor about seeming discre- pancies in various- Appear- esnciee when, he gave testi- 'many; ere e interest of the 'epeeist' ?Prosecutor's office is under- ;,11tond to focus on a June 28, 1072, memorandum from -Helms to his deputy, Gen. ,Vernon Walters, asking that ,-the FRI be requested to con- :fine Its Watergate inquiries in Mexico to "personalitiet already arrested or directly :undee suspicion." e The Helms memorandum :also requested that the FBI. ,"desist from expanding this !Investigation into other area which may welt even- ;Nally, run afoul of our op- .erations," Previous testimony by slelelms, Walters and other , CIA: officials was that the .Agenty never sought to limit bassador to Iran, is still un- FBI Inquiries into the certain, unproven and utiss Watergate scandal's Wel- upported, except perhaps by. can cennection. This facet Of inurces whieh . Mr. St, the cnsoseatabliehed a link George will not identithft! betweentthe Watergate' bur- ? Symington eta Sen. Ilosvard Baiter (R. Tenn.), vice chairman of the .Senate Watergate commit. tee, said yesterday he has no , intention of interviewing' Helms at this time. Baker did acknowledge, however,' , that he is looking lute Pub- lished allegations that the CIA Inftetreted the While House "pitenherg" team and the eVateriente ennepirsitors. Such aliessa lone 'have been recently ;merle by fora, mer CIA offietel e-Tilese ' Copeland In the riationat ! Review and free-lance writer Andrew St. George , In Harper'e mem:inc. St. George was quo/ kited in executive session by the, Senate Armed Servicee. Committee yesterday for the: second time In a week, Af- terward, acting chairman Stuart Symington (D.Mo,); said that the writer refused to divulge the source for; allegations' In his Harked, article that the CIA had I& filtrated the Watergate bur- glary team, "Tho Authenticity of quotes In the article relating to the former Central Intel- ligende Agency director, Mr., Richard M. Helms, now an1-+ NEW YORK TIMES 27 November 1073 44% IN POLL BELIEVE' NIXON VIOLATED LAW WASHINGTON, Nov. 26 (UPI) -- A Harris poll' released- Joday indicated that 44 per ? cent of American believe that,. : when the Watergate investiga- tion is completed, President ,! Nixon *ill be found to have :.violated the law. The poll also showed that 46 per tent of 1,454) persons quees !toned Nov. 12-15 did not. elieve that Mr. Nixon was ti mad of high integrity. c The polling ' organizatiOrti, ? heeded by Louie HarrisSett '11utt When ft asked A 46111/tel Section Of Aniefieniiii?Yik Months ago whether they be- lieved Mr. Nixon was "a men of high integrity," 76 per cent said he was and Only13 pet ' cent said ,he was not. The ne* poll showed 46 per cent eat r he was not of high integrity while 39 per cent said he was, in answer to a questletV whether Mr. Nixon would Wits mately he found to have broke, en the law, 44 per cent be.., ?ileved he would be, 34 per edit said he would not be and 22 per cent were not sure. In response to a third ques.,' Son, 63 per cent 'of those' :polled said that Mr. Nixon did, not inspire confidence while 29, per cent said that he did. ' Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ;77..:1,1;77.ri,,TFITT117-t 77'77117/11;1717r7)Fil'iv',Ilinitif?'r:IV,11,1? .110, ?).df II' Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASKINGTOrt STAR 28 November 1973 Watergate Jury Hears by Oswald Johnston Sikw.Nows Staff Writer 4. Fortier CIA director kichard M. Helms has tetti- fled for a second time be- fore the Watergate grand Jury about possible CIA involvement in the break-in at Democratic National Headquarters and the sub- sequent coverup. 4 Helms, now ambassador in Iran, was recalled trout , his diplomatic post for testi-, )ttiony and appeared for about an hour yesterday 'before the grand jury, ac- 'Cording to sources close to; the Investigation. Watergate special prose- 'etttor Leon Jaworski's of-? Ike refused any comment Oh the Helms interrogation. But it understood staff in- ?Oestigators, following the lead of Archibald Cox, 'wanted to examine further a memorandum written by Helms 11 days after the June 17, 1972, Watergate break-in in which he asked, that F8B1 agents "confine' themselves to the personalial ties already arrested or di-, reedy under investigation.' THE JUNE 28, 1972. NEW YORK TIMES 23 November 1973 memo surfaced earlier this month and stirred reports of renewed interest at the prosecutor's office id Helm's original testimony. In some eyes, the memo ran directly counter to, sworn testimony by Helms' and other CIA officials that" the agency had no connec- tion whatsoever with E. Howard Hunt and the other. onetime intelligence opera-. tives who carried out the rliune 17 break-in. ' This apparent discrepan- 'cy was further underlined pearlier this month by an ar- ticle in Harper's Magazine, It contended that Eugenio Martinez, one of the five conspirators apprehended Inside the Democratic head- quarters and admittedly a paid CIA informant at the time of the break-in, had. kept CIA higher-ups fully Informed of the doings of Hunt and his colleagues. ' ? THE THESIS has been sharply disputed by all con- gressional investigators who have looked into the matter. The Senate Armed Services Committee held two hearings earlier in the month in an unsuccessful 'effort to press the author to authenticate his claims. Rep. Lucien Nedzi, Mich., whose CIA oversight subcommittee of the House Armed Services Committee, has probaly carried out the most painstaking study 'of the relationship of CIA to Watergate, has firmly con- ,cluded that the agency was' , not involved and that the potentially damaging memo is really innocent. William E. Colby, the present CIA director, earli- er this month prepared at the invitation of Senate Armed Services Committee acting chairman Stuart Symington, D-Mo., a second memo to explain what Helms had in mind. In it, Colby explained that the original Helms memo, addressed to deputy CIA director Gen. Vernon A. Walters, was aimed at pro- tecting two undercover agents in Mexico from expo- sure by an FBI investiga- tion of what later turned out to be a Republican Finance Committee money chaid through a Mexico Cll. bank. "HE WANTED to dii Ukraine Holds Nixon Above Criticism By CHRISTOPHER?I. WREN Plpeelat to The New York Time ZAPOROZHE, U.S.S.R., Nov. 15?President Nixon remains iii untarnished symbol of recon- ciliation out here in the Soviet hinterland. The Watergate af- fair means little or nothing to , ordinary citizens of this sprawl- Mg industrial center of almost , 700,000 people in the southern Ukraine. "Yes, it was reported," a ; young engineer 'said, "but I really don't think I know about it." ; His response reflected the 'cautious treatment that the 'Scandal has received in the , local Soviet press. The national :newspapers such as Pravda and lzvestia have been giving Wa- tergate increasingly more atten- 'Con, though their repos gen- erally run only a few para- ' graphs. Passed Up Story But in Zaporozhe. the local press has sidestepped the mat- ter, When Pravda reported that Mr. Nixon was willing to sur- render documents related to Watergate, the local Ukrainian. language paper, Zaporizhska Pravda, passed up the story for iProsale articles front Cairo, Meow. Hanoi. and London. SOVIET Kly UNION uKtioinN?:;?.? f?1%0?? The New Yore lime/Nee. 23, 1973 . "We have told our readers what they need to know about Watergate," said a Journalist from Kiev, "but It Is, of course, your Internal affair." The hesitancy to bring up the Matter suggests a wish by th local press not to confuse Its readers by undermining their faith in an American President with whom the Kremlin has made SOnte accommodation. . "You must understand that ',man, but the Symbol ot Mitten for, us means not die ere of understanding the United States and the SO: viet Union," explained a trans- lator, who said she had folb lowed the Watergate affair., "When 1 first heard about It, I thought it must be a trick," she said, expressing a not untontb mon skepticism. In Zaporozhe, Mr. Nixon hag retained the stature he won when he visited the Soviet Union in May, 1972. Same of the city's residents recall the he stepped In the Ukrainian capital, Kiev. "Are there people In the United States who don't HIS ylitit President?' another woo. ?, . rr.". Approved For Release. 2001/08/67 ; 6.11. 12 Helms. ? Again' courage a fishing expedition Into CIA operations," Coll* said. Nedzi has fully accepted this interpretation, both in a Special subcommittee re.* port on the CIA-Watergate' connection prepared last month and in private con- 'versa tion thereafter. He repeated his conviction id an interview yesterday. State Department ?Me cials confirmed yesterdait that Helms returned from ? Tehran over the weekend. Informed sources reported, that he conferred with Col., by Monday, and he was reported to have met with Nedzi yesterday afternoon. , When questioned, Nedzi reiterated that the contro-i versial memo could hurt ' Helms only through misin- terpretation. "Our record Is , complete," he said, adding that he and his subcommit- tee had gone through "pileC of memoranda" from dant- ? 'lied CIA files relating to the Watergate crew, including , Martinez, without finding a shred of evidence of any,, InVelvement. dri asked. "Why is that?' ? The decidedly Ukrainian pace Of Zaporozhe is interrupted by Such stray wisps of Americana is an amplifier in a hotel blar- ing out "Chattanooga Choo. Choc)." But the citizens of this city, Preoccupied with their Own seem otherwise un- touched by .what is happening In America. Any discussion about the United States Inexorably pro- eeeds to a plea for co-exist- ence. "We all Just want to live," said, one matt. "I want to and you want to, to why don't we * ? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 'By'Lawrence Meyer Washington Post SOU Writer Following a decision b ft*" Senate select Watergat committee yesterday to su pdtid hearings on campaig finfancing indefinitely, it WASHINGTON POST 28 NOV 1973 i .14y? En Water learitt s- ranking Republican mem her, Sen. Howard H. Bake , Jr. (R-Tenn.), said it is possi- s ble' the hearings may never resume. The committee, acting on a recommendation from its staff, voted 5 to 1 to suspend the hearings subject to a call from the 'cliairmao, Sen. Sam J. Ervin Jr. (D-N.C.). The lone dissenting vote ? was cast by Sen. Lowell P. Weicker Jr. (R-Conn,) who ; reportedly criticized the , staff and his fellow senators ; for failing to work hard ; enough in the last several months. ' Following the committee meeting, Ervin- and Baker etold reporters they were sus- pending the hearings to give, ? the staff more time to con- duct its investigation. Baker ; said it was important that - the staff have "hard facts" ; and "hard proof" before tes- timons in two areas of cam- -- paign financing is presented ? publicly. Baker, vice chairman of aire recluse Howard the additional tapes would Hughes made in two $50,000 be sought because, "We - installments in 1969 and r 1970 to Charles G. (Bebe) Rebozo, President Nixon's close friend. The committee has received conflicting ver- sions about the purpose of the contribution. Rebozo has reportedly told the committee staff that he kept the money in a . safe deposit box for three ? years before returning it to Hughes earlier this year through Hughes lawyer Chester C. Davis. In addition to these two areas, Baker reportedly told the. committee during its morning meeting that he in- ; tends to have .the staff of the committee's Republican members devote time to in-. vestigating whether the CIA was inoolved in the Water-. gate break-in and whether - Democratic Party officials had "prior knowledge" of ? the break-in. The delay in the hearings was seen by persons close to the committee as strengthening Baker's ability to block resumption of the hearings and thus prevent testimony that could further Yesterday three Hughes employees, Hughes lawyer ; ; the committee, said that the ; hearings can resume only ; when the staff says it is ; ready to proceed, probably I some time in January. raker I said he "fully expects" the stair to come back. to the , committee and say, " 'Look; here are the witnesses and ! here is the proof.'" Asked by a reporter if the ; question is when will the ? hearings resume, or will they resume at all? Baker replied, "It's a question of when we resume. bet I don't exclude the possibility that we might not." ? The committee still has two subjects or potentially great intere.st to take up in public session. One Subject is the 5427,500 in contrib. ? utions by Milk producers to the 1972 Nixon ? re-election campaign. The contributions coineided with an adminis- tration decision to raise gov- ernment milk price sup'. ports. The second area concerns , a al00,000 cash contribution from an emissary. of billion- . think that information is relevant to our investigation also. ? Baker and Ervin said the , committee's staff also was authorized to prepare a list of other tapes and White House documents it believes are relevant to its investiga- tion so the committee can prepare subpoenas. Refer- ring to documents already requested by the Committee from the White House, Er- ; yin said that if negotiations' to produce them fall, the committee will subpoena', them also. Baker said thine actions represented a "broadening ! of the inquiry" AS a result of ! new information gathered by the staff. Ervin said the committee I, also was preparing to cite several Hughes employees for contempt of Congress If ' they fail to respond to sub poenas issued to have them testify in executive session before the committee. The employees have balked at giving testimony except in, public session. ? Davis filed suit In the U.S. ' District Court here asking the, court to rule that they ? ; ;may not be required to tes- tify except in public session. .! The suit, filed by Davis as ' lawyer for himself and the ; others, ;charges that the I staff has interviewed the ; Hughes employees Miring ? the last two months. Follow- tog -these intervicw4, the ; stilt says, "distorted and ! speculative accounts of the information obtained" from those interviewed appeared In the press and other me- dia. Davis said that he notified . the committee "that he and his clients stood ready and willing to testify" before the committee "but that any ? such testimony should be taken at a public hearing as required by law." According to participants In yesterday's meeting, Weicker was shollAy criti- ? cal of the senators and staff. ? One source said Weicker said that it appeared to the public that the committee ' was dragging. This source quoted Weicker as saying,, "I'm getting tired of looking. like we're sitting around here on our asses.'" damage President Nixon on Davis and an employee of the one hand or demand ;--- - ? that the hearings proceed if ; the minority staff can pro- duce testimony about the ' CIA. or Democratic officials. Although these sources said Baker had said noth- ing to indicate that he want- ed the hearings stopped, ? they indicated that it was not unreasonable for him to make the effort. At the same time, Ervin announced that the commit- tee had given the staff au- thorization to seek addition- al tape recordings of pre'si- dential conversations, from the White House. Ervin said the committee would seek all nine tapes being sought by the special Watergate ?prosecutor rather than sim- ply the five tapes the coni- mit tee originally ?subpoenaed from Mr. Nixon. Ervin said 13 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ? f; Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 NEW YORK TINES 26 November 1973 SPY SAID TO LINK CHAPIN \AR t, 'Sourcis Say Segretti Told ;Proncutors Nixon Aide Hatf Acted as Liaison ' 1- By JOHN M. CREWDSON Special to ma Nfla York Times WASHINGTON, Nov. 25.?r Donald H. Segretti has told Watergate prosecutors that it was Dwight L. Chapin, while President Nixon's appointments secretary, who first alerted him ejarlys in 1972 to expect a tele- phone call from E. Howard Hunt Jr., according to sources close ,to the case. ? The disclosure appears to clontradict a statement by Mr. Chapin, issued through the White House after 'Segretti's role as a political saboteur be- came known, in which he de- clared that "I do not know, have never met, seen or talked to E. Howard Hunt." ? Using the alias "Edward Warren," Hunt did call Segretti in February, 1972, and from then until the Watergate break- in in June of that year sug- gested, during subsequent calls and visits, various covert ac- tivities that the 32-year-old lawyer might pursue. During the time that he was In touch with S? gretti, Hunt, a part-time W'..te House con- sultant, war also engaged in planning a. / implementing the Nixon re-i-ction organization's illegal intelligence-gathering sche,. that included bugging the Jemocrats' Watergate of- .s. Hunt pleaded guilty to his ,? le in the bugging in January. Strachan Was Liaison It has been disclosed pre- viously that Gordon C. Strachan, while an aide to the former White House chief of staff, H. R. Haldeman, acted as liaison between Segretti and G. Gordon Liddy, the Nixon cam- paign official alsb convicted for his part in the Watergate bug- ging. But Segretti's assertion to the prosecutors that Mr. Chapin played the same role with re- spect to Hunt is believed to be; the first indication that the' former White House appoint-, ments secretary had any knowl- edge of or connection with' others involved in the Water- gate operation itself. ' Segretti eventually pleaded guilty to three misdemeanor charges arising from his activi- ties as a Republican undercover agent during the 1972 primary elections, and is serving a six- month sentence at the mini- Mum-security Federal correc- tional facility at Lompoc, Calif. Mr. Chapin, who was re- ? pprtedly forced to resign from the White House staff in Feb- Jeary after his role in hiring the campaign spy betatner. known, is a marketing execu- tive with United Air Lines in Chicago. ' Mr. Chapin, also 32, is one of the few Watergate figures who have refused to appear before the Senate committee inves- tigating the scandal. The panel decided in September not to subpoena Mr. Chapin after he said he would invoke the Fifth Amendment in response to all questions. ? During a secret grand jury appearance in April, however, Mr. Chapin reportedly testified that he had hired Segretti, a college classmate, to follow the major Democratic Presidential contenders and report to him on their movements. ?? But he told the Federal Duj reau of Investigation in a series of interviews early in 1973 that he had never seen or possessed any of the materials distributed by Segretti, and that his friend had acted largely on his own initiative and without any spe- cific instructions from him. Mr. Chapin further told the inquiring agents that he was entirely unaware that Segretti had had false publications about certain candidates printed. The 'Sex Letter' :But in his testtmony before the Senate Watergate coins mittee, Segretti said under oath that he had received close and specific directions from Mr. Chapin in several instances, and that he had, in fact, sent him copies of some of the bogus publications he was having circulated. Among these, Segretti said, were the scurrilous letter ac- cusing two Democratic Presi- dential candidates of sexual improprieties and another false document declaring that a third Democratic candidate had been hospitalized for mental illness. ? Segretti recalled Mr. Chapin's telling him that the so-called "sex letter," which cost $20 to print, had brought thousands of dollars of free.publicity. He said that Mr. Chapin had "laughed for a period of time" upon learning of Segretti's false accusations about the mental health of Representative Shirley Chisholm, the Brooklyn Democrat. Two of the charges to which Segretti pleaded guilty in September involved the letter accusing Democratic Senators Hubert H. Humphrey of Min- nesota and Henry M. Jackson of Washington of sexual mis- conduct. ' Segretti began serving his six-month sentence two weeks ago, and will be released in March with time off for good behavior. , The daily routine at Lompoc, about 200 miles north of Seg- retti's Los Angeles .home, is relatively lax in comparison with that at other Federal pri- sons. The inmates live in bar- racks rather than cells, and are allowed such liberties as sleep- ing through breakfast if they choose. ? LONDON TIMES 9 November 1973_ , . ? Swedish intelligence 'worked with CIA' Roger Choate . Stockholm, Nov 8 Sweden's Democratic Govern- ment today faced rising demands from both Parliament .and the country to lift the veil of secrecy shrouding the activi- ties of the Swedish secret ser- vice. Opposition leaders told Mr Olof Palme, the Prime Minister, that there must be a rapid and open investigation of what some .newspapers have called "the 'Swedish Watergate ". The affair has resulted in the deten- tion of two magazine editors and also dominated the autumn par- liamentary debate, which opened yesterday. , The political storm was started by a left-wing magazine, which published in a series of articles details of the alleged activities of the Swedish secret service known as the Informa-, ,tion Bureau. The latest article 'alleged that Swedish intelli- genceofficers had worked with Israeli agents, spied on Arab ?embassies and had broken into Ithe Egyptian chancellery. . The magazine claimed that the secret service had worked closely on several occasions tvith the American Central In- telligence Ageney, and through ',it had transmitted to Washing- ton information about condi- tions in North Vietnam while the war was on. ' Mr Gunnar Helen. the Liberal Party leader, said yesterday that he wanted an investigation into another allegation made by the magazine that the secret ser- vice had cooperated with, and turned over secret information ? to, certain officials ?within the 'kuling Social Democratic Party and its youth organizations. Mr ' Palme denied that there was any substance to the accusation. ? Mr Helen also asked for a parliamentary investigation of the Government's handling of what the Swedes call "the secret service affair ". This concerns the arrest last month of two of the editors of the magazine Folket I Bile!, known as FIB/ ? Kulturfront. On October 22, the two editors, Mr Peter Bratt and Mr Jan Guillou, and three other persons, were arrested and security police raided the Stockholm office of the magazine Mr Carl Axel Robert, the chief prosecutor, said the men were arrested on suspicion' of spying. Almost three wq,cics later, the editors were still boltig held by police without being charged. He said, however, *hilt he would formally press charges of espionage, perhaps tomorrow. At the time of the arrests*Ir ? Robert claimed that electronic eavesdropping equipment tad been used by journalists in operations which might threiten the country's national security. Police said they found material in the raid on FIB/Kulturfront which allegedly compromised the secret service. The magazine's allegations shocked many ordinary SweOes,, ?who id not know until last spring, when FIB/Kulturfront published its first article, that their country had a secret service. Its existence was ? apparently known only by a select committee in Parliament which was said to have received ,reports on its work, from the Defence Minister, ? Mr Palme, in a remarkable interview' last weekend with the influential ? newspaper Dagens Nyheter; broke his silence as ?. pressure grew thro'ughout the country and within his own party that ho should make a statement. ' He said that the September 24 ispue of the magazine demonstrated that " criminal activity had taken place ". The journalists, under the protec- tive mantle of "freedom of the press ", had made use of such? methods as electronic eaves- dropping, shadowing and false identification cards. The newspaper noted that the Prime Minister refused to per, mit publication of his answers to a series of questions about the Swedish intelligence ser, vice's alleged cooperation with the CIA. Mr Palme was, how- ever, quoted as saying that4 "our intelligence service would never favour one or other power .block without having sole dis- position of ? Swedish security.4 agenhtes." . prim T e Minister denied that the intelligence agency maintained an "Ideologic black-book" of suspect Swedislf,1 citizens. fie said it. had a list! of about 5,000 names which did not have any sort of ideological,. connotation. .14 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ' Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 NEW YORK TIMES 22 NOV 1973 'Critics Still Doubt Slayer Was Alone By MARTIN WALDRON Special lone New York Tirnee FREDERICK, Md., Nov. 21? The day begins at 5 A.M. for Harold ,Weisberg, former agent of the Office of Strategic Sem ices and occasional investigator for the Senate who for the last few years has been' on a per- sonal crUsade to find out the truth abut the Kennedy assas- sination. ? Shortly' after Mr. Weisberg ? begins stirring in the chill Mary- land dawn, Penn Jones Jr., a short, stubby newspaper editor :1,500 miles away in Midlothian, Tex., drives out to his farm to check on his cows, then on to -the office of the N.veckly Mid- lothian Mirror. Mr, Jones has the same hobby. Together, they are the un-; , official leaders of an energetic!; group of Americans who dolt not believe the Warren Corn- mission report that Lee Harvey Oswald 'acted alone when he, shot and killed President Ken-. , nedy and who are still. conducting private investiga-; tions into that assassination. . Some of the doubt that hasi arisen over the Warren Corn- mission finding that Oswald1,1 was the lone assassin has; grown out of a decision not to release some of the testimony , taken in secret. Medical re- ports were- also .kept sealed until last year, when an out- sider for the first time was . allowed to examine some of them. The dozen or more experi- enced trial lawyers hired by the commission to compile and analyze evidence agreed unani- mously that Oswald was the lone gunman, although there was wide disagreement among the lawyers about many de- tails. The three military doctorsi who performed the autopsy onl President Kennedy's body havel never expressed doubt that Mr.:! Kennedy was killed by a bullet, . that struck him in the back of ' : the head. Almost all of the ' critics have argued that the fatal shot came either from the i ' side or from the front. And just this week, a former i -Commission staff lawyer, David ? Belin, published a hook, "You Are the Jury," defending the , commission's finding that Os- wald was the lone assassin and ' attempting to rebut the coin- mission's critics. . But even after 10 years, Mr. Jones can be reduced to. out- rage bordering on incoherence' by a discussion of the official investigation. "There are delib- erate errors In the volumes" of commission testimony, Mr., :Jones said the other day. . Mr. Jones, who is a retired i 'general in the Texas National Guard and who has won nee' Hone, honors for courage in Journalism, estimates that 1001 to 200 people are still working full-time investigating Mr. Ken- nedy's murder. Mr. Jones is the developer of a theory that there is a con- spiracy in the United States to murder everyone who has any pertinent knowledge .about the Kennedy assassination. Thus far he has compiled a list of 72 suspicious deaths and says there may be more than 100. Mr, Jones tends to agree In principle with New Orleans Dis- trict Attorney Jim Garrison that ! President Kennedy was killed by the Federal Government with the connivance of the Fed- eral Bureau ef Investigation and the Central Intelligence Agency and at least the tacirepproral' of the late President Johnson. Mr. Weisberg, who has pub-, lished four well-received and* carefully researched books about the assassination, says that the circumstances of Mr. Kennedy's murder cry out con- spiracy. He says he views the 'Warren Commission investiga- tion as a "whitewash," the name lie gave to three of his books. Most of the doubt about the Warren Commissions finding has been based 'on conflicting !statements by witnesses. But ; these views have been backed 'In recent years by scientific in. Dr. Cyril H. Wecht, coroner of Allegheny County, Pa., (Pitts- burgh) said last year after ;studying autopsy material that :had been kept secret for almost leight years: "From a hard phys- ical evidentiary standpoint, : there was more than one person shooting." The . single-bullet 1 theory is absolute nonsense." The Warren Commission con- eluded that one bullet pierced . President Kennedy's neck, went through the chest of then Texas !Governor John B. 'Connally Jr., arid then on through Mr. Con-. nally's wrist into his leg. "Once that theory is de- stroyed, we must conclude that more than one person fired," said Dr. Wecht, who is past president .of the American aca- demy of Forensic Sciences. , A theory that President Ken- nedy's assassination was ar- ranged by munitions makers . has been made into a movie, ? Executive Action." The movie is based on t t novel by Mark Lane, a New York City lawyer who was one of the early critics of the Ware ren Commission and who pub- lished a book, "Rush to Judge- ment," which was critical of thecommission's investigation. Among the majority of . Americans either convinced or open to the idea that others besides Oswald were Involved n the assassination-64 per tent In t 08111.10 poll released WASHINGTON POST 25 November 1973 . aktum Airs lot The9ry In Killings 13y John Hanrahan Washitastoh Poet Matt Writer A myriad of conspiracy the- ries, including. .one. attempt- Ing to link the'assassination of :tresident Joh!, F. Kennedy te ;Some of the,.. figures, involved the Watergate affair, ;were ;raised yesterday on the :61uding .day of a two-day con- rence here on political asaas- liinations of the last decade. Various theorists at the con- 26rence at Georgetown Uni- 11.$rsitty's Gaston ,Hall attrit akted President Kennedy's na- iillssinatIon to organized, 4-ime, the CIA, anti-Castrb pubans, big businessmen, the date President Lyndon B. r eIbhnson, Soldiers of fortune or Ambinations of these ele. aln most instances, the theo- ,Wes were old ones brought up itp idate. While some theorists !elKonerated Lee Harvey Os- iwald of the assassination of ,) *President ? Kennedy, others aid Oswald may have been a ;minor figure in 'a large ' con- 4.1.eiracy. !-. What was .different 'about die discussions from those of 4r,lier years was the apparent Iwidespread feeling that the Watergate affair and cover-up had links to 'President Kenne- :OS aSsassination in Dallas 10 years ago last Thursday. . ;Although the conferente 'aPiansor, the private,: Washing- lop-based Committee to Inves- tigate Assassinations (CTIA), had not listed Watergate on "ite program, the issue was bepught up yesterday after- nrion by Chicago-based gadfly in January, 1967?was Presi- dent Johnson. Leo Janos, a Time magazine writer and a forrner Johnson aide, said that President John- son had told him a short time before his death that he had never believed Oswald acted alone. Writing in . The Atlantic Monthly, Mr. Janos said that President Johnson had told him that "a year or so before Ken- nedy's death, a C.I.A.-backed. assassination telfirtad been picked up in Havana, Johnson speculated that Dallas had been a retaliation for this thwarted 'attempt" to kill Cuban Premier !del Castro. . CIA-RDP77=00432R0"001 Approved For Release 2001/98/0 Olierman Skolnick, Who was in the audience. A sizable por- tion of the audience of about 20p persons appeared to .4.up- . Port Skolnick's successful ':tif- fdtt to put Watergate on tlie agenda. ' . Skolnick, the chief prop ? tient of the theory that Aber& 'was deliberate sabotage in the plane crash that last Deeern.; her killed Dorothy 'Hunt, wife of Watergate conspirator E. Howard Hunt the conferenee what he 1110e-ed. were nos,s' links between the CIA and t 2 CTIA, ouestioned why the een- . ?fOrenr.: was heitui held on a CIA ,:;:vropus.". a reference to 0'A-sponsored rescarch that has teen r y-r:ed oti;. at Georgetow: ,4'4i suggested that at k's wc prominent 'CTIA inexners havr ridden DiA des. ;One of the panelists, Dr. RiChard Popkin, professor of philosophy at Washington Unl- .versity .12 S. Louis, eai.e teat .many other countries ar..vc ;had political assassination con- spiracies, yet American offi- , dais here would have the na- 'Win believe that the assassi- nations of the ? last decade; ? ,shave been, carried out by Icfne nut." Popkin said the: Watergate affair, with its "Conspiracy to reelect the: President," should convince: Arnericans once and for all, that conspiracies do exist and, that President Kennedy was 'the victim, of one. Although none of the panel- ists dealt specifically in their prepared remarks with links between Watergate and Presk dent Kennedy's murder, vari- ous members of the audience Contended that there may ex- 1st evidence to show that per-', inns arrested in the break-in at Democratic Headquarters' .iri>the Watergate also were in; ;Dallas on the day of Mr. Ken- nedy's assassination. :? Ramparts magazine and 'many underground and smaller; :Circulation publications have suggested. in recent months 'that there may be direct i links between the Dallas shoot- ing and the Watergate affair. but, as some members . of the. .audience said yesterday, the major news media have ig- reired this possible connection. 'Peter Dale Scott,. author and professor at the University of ettlifornia at Berkeley, said 'there were "lessons of Water- gate" that should be applied to,examining what he said was th "cover,up" of the facts about the Kennedy assassina; !the Watergate affair also showed, he said, that the per- sorts Involved in the , cover-up flIfl hot necessarily have ben Involved hi- the orlillottl? crInte: He said he suspects this was the case in the inves- ,tigation of Mr. Kennedy's 00290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 In a morning panel discus- sion, authors of various books and articles' on political assas- 'sinations expressed frustrat- ion over notibeing able to in- terest majo - news media in newly disc ered evidence or theories rthting to the polit- ical mur rs and attempted WASUINGTON STAR 23 NOV 1973. 1 Zrzzits miirders. Although some panelists said the' felt there was a new willingness by the.news media tovdo more investigative re- porting as -a .1*Nlt of the Watergate affal?4,', others said there was still askong reluc- tance in the media to ?re-open inestigations of assassina- t1lL 13y Mike Winship Special to the Star.hlews 'Their investigators work oui of a ? crowded office in a 16th Street apart- ment building. Taped to the door is a piece of scrap paper with the scrawled . letters "CTIA"?the office's only identi- fication. , Inside, the small rooms are packed with books, papers and filing cabinets. An oscilloscope and several radios sit , near a window, and the walls of one cu- . bide are covered 'with maps of Texas ? and England. The initial undercover look of the of- fice disappears with the appearance of Bob Smith, director of research of the ? Committee to Investigate Assassina- tions. ! "Are you looking for Bud?" he asks, and picks up a light coat. "He's over at his office. Let's go." ; Wait a minute?are those maps being used to track down the escape routes of professional assassins? Oh, no, Smith ; shakes his head and gives a pained look. "Our secretary, Andrea, just joined IcriPle A. She puts them uP for decora- tion." THE COMMITTEE to Investigate Assassinations, organized in 1965, be- ' heves that the official explanation for the murders of the Kennedys, Martin Luther King Jr., Malcolm X, American ? Nazi leader George Lincoln Rockwell, and the shooting of George Wallace : have been woefully inadec)tiate. ? i. Privately funded, the committee has ' ; two full-time, unpaid staff members in I the network of "doctors, lawyers, writ, iers, architects, housewives, Indians, ; paranoids and ha.rdheads" around the country who have become amateur sleuths attempting to uncover whzit they think may be the true stories behind the shootings. The amount of research material in existence is staggering. By Smith's esti- mate, the National Archives has ten times more documentary evidence ! about the murder of John Kennedy than is contained in the, entire 26 volumes of the Warren Commission Report. As chief counsel to the Senate; sub- committee on administrative practiee and .procedure from 1964-1963, Fenster- . u;ald wanted to see a separate Senate investigation' into the Kennedy assassi- nation. The chairman of the committee, at that time, Sen. Edward Long, was una- ble to act on the suggestion because of re-election troubles in Missouri (he was defeated in the 1968 Democratic pri- mary by Thomas Eagleton) and a Life 1 magazine article that accused him of secret dealings with the Teamsters Un- ion. . Fensterwald went into private praci'l tice and proceeded to organize CTIA's' ? team of investigators:" .The CTIN efforts soon expanded into other cases besides the first Kennedy assassination?Martin Luther King Jr., Malcolm X, Rockwell, and Robert Ken, nedy.- Events forced expansion of their in- vestigations: "We couldn't help but worry about the Wallace shooting, too." ? CTIA is especially interated in how Wallace's would-be assassin, Arthur Bremer, was able to afford his travel around the country in pursuit of his vic- tim. . ? CTIA has accumulated a massive sys- tem of files of material collected from around the world. Most of the docu- ments, articles, and copies of declassi- fied material will be turned over to. Georgetown University's library for safe-keeping. . But the committee sees its function as much more than a depository for infor- mation. "We're sort of the leading edge of the 'Let's solve the murder move- ment," Fensterwald said. ? They have filed several lawsuits to release information still withheld in the various cases, and they lobby on the Hill for legislation to declassify restricted material and reopen official investiga- tion. Also on hand is a list of more than 25,000 names of people who have been, involved in the various investigations to date. ? , ? "You'd be surprised how Many names. keep cropping up," Fensterwald com- mented. "Not necessarily with any criminal connection?but when Frank . Sturgis' name came, up in the Watergate case, we knew who he was." 16 STURGIS, one of the five men arrest- ed in the Watergate offices of the Demo-, cratiC National Committee, lived in Miami at the time of the John Kennedy ? assassination under the name of Frank Fiorini. He ran a group called "The In- ternational Anti-Communist Brigade," land one of its members, according to iFensterwald, later claimed that Lee 1Harvey Oswald had attempted to infil-, ttrate the group. But, added Fenster- wald,!i the FBI "had no record of Os- lwald's being in Miami." A subpoena to appear before the Seine Watergate Committee is taped to Fen-' sterwald's bookcase. He is serving as a defense counsel to James McCord, an-, :other of the Watergate Five. ? Does McCord see any conflict of inter-' 'est with private investigation that might draw even a tenuous link between 1Va- tergate and misdeeds of the past? "Jim McCord was well aware of my hobby before I became his lawyer," Fensterwald stated. "He has never helped or hindered us. The only thing I ; have against Jim is that he's such a istraight Methodist." ? "Even before NVatergate, I refused tc write off anything as preposterous," he added. "But before that happened, we ? have had a theory in this country that goes back well over 100-years, and it has to do with our national ego. You can have a political conspiracy in France. . Guatemala, Russia or anywhere ? po- litical murders are often committed by a political group for political reasons ? but in this nation we have been so pure, so democratic and unviolcnt that only a nut could Perform an act like that." It's that attitude that has kept the ail . cial investigations of assassinations ;from being complete, Fensterwald be lieves. , . , ; "In all of these case, the sloppy wor14 ; that's been done, whether accidentally ' or on purpose, would never .suffice ir i the average murder case," he claims. ; "If John Kennedy had been John Doe, .a coroner's jury would have demandec considerably better proof than the War- ren Commission got." Approved ForRerease 2001/08/07: CIA-R 7-1)-0432R0001 ottratvai=5--- Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 I Ai Q;:3 7,1 ? Li t-7:N ( 71?1 n>/ J WASHINGTON STAR 24 NOV 1973 it -eaey a nation: decides to alienate ,i3y John Mathews itself from its history, what er question is who pulled Star?News Staff Writer . we have got is a condition of the trigger on Arthur Bre-. mer," Van Doren said. - ' The? experts and buffs du- apathy . . . known as those The chief witness against ? tifullx extend their hands to years before totalitarian-..Brether, he added, was his . an aide at the registration ism," he said. own diary, which appears to i desk Who brands them with Lawyers now represent- be more a fabricated work : an inked tamp reading: ing Sirhan and Ray both than an actual record of his "Committee to Investigate . maintained that .:carlier activities. Van Doren Mai. ' . Assassinations." ' courtroom defenses were cated that Bremer was Then, they.move to seats inadequate and that ballis- probably manipulated bn , in 'cavernous Gaston Hall at tics evidence indicated they others. He questioned why ? Georgetown University to were not the killers of Rob. the Watergate investiga- . hear the lawyers, research- ert Kennedy and Martin tions have not disclosed any ; ers and writers dispute the K? Luther mg. evidence of "dirty tricks" ? offielai nersions of the !till- - Robert Hanson contended against Wallace, who ap- : ings of John F. Kennedy,' ' , Robert F. Kennedy, Martin that Sirhan was phySically peared to be the !ending not in a position to shoot candidate for the Demo- Luther King Jr? George 'Lincoln Rockwell and the Kennedy, although he did cratic presidential nomina- sheet bystanders. Someone tion at the time of. the . attempt on the life of Gov. George C. Wallace. else killed Kennedy, he .shooting. . ?. - Yesterday, the proceed.- said. . .? . .. , VAN DOREN provided ? ings at the Conference on a one of the few moments of Decade of. Assassinations' JAMES usArt, Who new comic relief at the confer- were. low-key. Lawyers ? cnce when he said Bremer represents Ray, the convict-. ed killer of Dr. King, said' spoke" of new attempts to. had a "spook mentality," ' reopen the cases of Sirhan he was "framed" and that then added, "I apologize to Sirhan and James Earl unknown conspirators re- any spooks who may be Ray. A forensic pathologist sponsible for the actual here." . . and medical examiner dis- slaying are still at large., Much of the talk at the puled the autopsy report On The 6th t,1.S. Court of Ap- opening session dealt with ? ? John Kennedy.. And, a for- peals is expected to rule disputing the "single-bullet mer CIA agent described. 011 on whether Ray is enti- theory" of the assassination how the Paychological. tied to a new hearing, on of President Kennedy: the Stress Evaluator can give evidence which was not in-, ? official Warren Report vet-- . some indication whether a troduced previously, Lcsar sion that the same bullet . recorded voice is telling the added. struck both' Kennedy and . truth. The convicted killer of then Texas Gov. John Con- 'George Lincoln Rockwell, ? nally. Dr. Cyril II. Wecht, ? TODAY, the final sessions. the American Nazi Party the coroner of Pittsburgh ; of the conference should leader, was defended by a and Allegheny County, Pa., perk up as the talk goes non-lawyer, Meredith Rode, said the scientific evidence beyond disputing the. find- . an art professor at Federal supports the critics who . ings of the Warren Commis- City College here. Former dispute the theory. . sion and past trials and Nazi John Patler, who was ? In August 1972, Wecht delves into the scores of sentenced to 20 years for was allowed 'to view medi-.. . conspiracy theories for the the Aug. 25, 1967 killing by c.al evidence at the National . political assassinations of :Arlington Circuit Court, ?Archives, but did not see the last decade. should be given a new trial, the preserved brain of 'Ken- In a keynote talk, author .Rode said, because of nu- nedy, microscopic slides of . Norman Mailer gave a phil- memos contradictions in tissue removed from bullet ' osophical rationale for hold- the evidence. ? wounds and sonic photos. ing the conference deliber- Rode, who taught a class Wecht said he does not aid}, timed to coincide with in which Patter was en know whether- the Kennedy the 10th anniversary of the rolled while free on bail and ? family has withheld the evi- Dallas assassination of became convinced of his idence but thinks it is in the President .Kennedy. . innocence, said his case at- Archives. . . .. The bullet recovered at . Assassinations . have tracts virtually no interest. "made? history b Ronald Van Doren, a ? Parkland Hospital in Dallas sive," Mailer said, 1 teadin?.journalist? acknowledged . and purported to have people to either spend years That the .9vidence was "fair- passed through both Kenne- disputing the official ac- : ly cleac that Arthur Bre- dy and Connally could not counts or to blot from their mer had shot GoV. Wallace have hit 'both victims since minds the possibility that. at a Laurel shopping center it " '''-is virtually intact, Wecht r they could be wrong. "When. - - lay 15, 1972. "The larg- said. The -bullet wa fired - with the rifle Lee Harvey Oswald allegedly used, but ? :.Wecht said he considers it a "plant." He would not spec- ulate on its origin. AS HE has in the past? Wecht screed}, ethieized the offidal autopsy - performed by isiOary doe- tor t Bethesee Navel Hoseital The .e0Latee pe- tho;ogists "aid their .superior officer; told ,e.Ta to do," he said, incieding failing to track the path of the other bullets thseugli Kennedy's brain.. Conference apensers, io- eluding Bernard Fenster- waid Jr., the lawyer for Watergate conspirator Jamea ?McCord (Fen- sterwald heads the cam- mittee To investigate Assets: sinations) dissociated them- selves from a demonstration at the Archives to demand release of all evidence, in- ? eluding the late President's brain. ? "The demonstration has nothing to do with us; WI stick to scientific and legal . ei/idence," FensterWalct said. Only a handful gath- ered to demonstrate. They left after the announced speakers did not appear 101 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASIINGTOI STA1- 2 5 NOV 1973 ? By John Mathews Star?News Staff Writer The Conference on a Dec- ade of Assass'inations closed yesterday with participants trading charges of conspira- cies to disrupt the proceed- ings or to limit the scope of the discussion. ? About 400 dissidents among the 200. participants demanded and got a final session to discuss the prissi- bility of links between Wa- tergate conspirators and the assassination of Presi- dent ? John F. Kennedy a decade ago in Dallas. "Our host, Mr. 'Fenster- wald, should be knowledge- able about that since he rep- resented James McCord, the Watergate spy some of us believe was at Dealey Plaza (in Dallas)," said Sherman Skolnick, a spokesman for the dissent- ers: ? Bernard Fensterwald Jr., the local lawyer who orga- nized and supports the CHRISTIAN SCIENCE MONITOR 16 NOVEMBER 1973 . singer-style By Charlotte Saikow ski Staff correspondent of The Christian Science Moniti r Washi ilton Diplomat , extraordinaire 14,3m7. 'Kissinger has a new directive ol for 'American envoys abroad. It s% Is in; , effect: sr Give me fewer dry facts rid; more analysis. ? Keep it short. ? Include any dissenting views Amid the swirl of high-level di!, Q-4 macy, the Secretary of State has ; ad little time to run the State Del rt. meat. But he has made clear he wan r to rejuvenate the bureaucracy an : , when time permits, will devote s(,)" energy to the mundane problems )f' administration. More persw; el changes are expected soon, also. Meanwhile, bits and pieces of Is thinking are beginning to surface. : . a recent cable to U.S. embassies ab- he comments on the "sheer r.thr of Information" which floWs 'rit the department as contrasted mil I the "paucity of good analyi al 1. tate: rial." - For reporting to be us [ii, he ;ays, "I require not only hi : mation on I what is happening, bt : your most thoughtful and ce.reiu" malyses of why Itis happening, tt. means fol' 'U.S. policy and the dire / arts in which yen see events giaille The Secretary ale dvises his mission chiefs to cut ( n marginal-, Committee to Investigate Assassinations that spon- sored the two-day confer- ence, said the group led by Skolnick "are the type who should normally be called Know-Nothings. "It's discouraging that serious efforts like these have to be disrupted," he said. "I don't have any proof, but. .. federal agen- cies could be interested id disrupting this conference. They have fought us in the past in every way I can imagine." ANOTHER dissident, A. J. Weberman, a well-known figure in the underground press, said that "left-wing assassinologists have been excluded from the confer- ence." He added that the sessions at Georgetown University "could be a' CIA ft to keep an eye on AV peolne.are learning about the assassinations.". ? Fensterwald countered that all points of,views were represented among confer- ence speakers. "Most of us on the committee are liberal Democrats, and if anything, we have been accused of being too far to the left." Skolnick, who led the dis- sidents at the assassination conference, heads his own Committee to Clean Up the' Courts in Chicago. Recent- ly, he has conducted an in- vestigation of the plane crash last Dec. 8 in Chicago in which the wife of E. Howard Hunt, another Wa- tergate conspirator, was killed. Skolnick charges the flight was sabotaged and that the media and the gov- ernment have conspired to cover up the facts of the crash. ? Despite the dissent at the final day of the conference, discussions continued with virtually no new facts dis- closed, but with much re.: view of well-aired conspira- cy theories. DONALD FREED, co?-? author of "Executive tion," the new film on the assassination of President -Kennedy, urged .assassina- ? 'tion !miffs to "strike a bal- ance between paranoia and' naivety." Along with mark Lane, ? the other author of "Execu- tive Action," Freed said he rejected the comment of the . producers that the films, was "pure entertainment." Peter: Noyes, a Los Ange- les television news producer who has written a new book, "Legacy of Doubt," alleg- ing that a Kafia figure was' .connected to the assassina- tion of President Kennedy, said, "Until we have the power of subpoena and a congressional investigating committee takes action, we Will accomplish nothing."? diplomacy-reit s interest items and to make reports' '"cogent and concise." In his words, "Verbosity too often seems to substi- tute for careful thought." ! Lastly, Dr. Kissinger urges. foreign- service officers who disagree with judgments and policies of superiors to' make their views available to him.' But, indicating he wants discipline in the ranks, he warns this must be done through "controlled channels" and not in the press. ? ! Those who work with Dr. Kissinger' say he does not enjoy spending long hours on such matters as what bureau should do what. But he apparently is determined to infuse a new spirit at the department. Policymaking broadened Although he continues to wear a; ,White House hat as special assistant' 'to the President, say aides, he really, has moved over to State. More of cials have been brought into policy- lnaking, and some members of his National Security Council staff are :said to be at a loss to know what their role is now. His operating style remains the same'. He works incredibly long helve , and has so many balls In the air Oat there is a frantic quality to Ma activities that leaves some Subo nates confounded and others sth , Tho tigheot secrecy eurreurt:ta dud,' cate ,negotiationsi and lines e: ess of what, more of why munication to. division heads have yet ? ? ,to be fully worked out. Some high: .officials have been irked because they', ,were not clued in on communications 'relating to the Middle East crisis. Mindful of sensitivities on Capitol ; 'Hill however, the globe-trotting Sec- ! retary has found time to keep the Congress informed of broad Mideast and other developments, as he prom- ised to do when first nominated. Sen. J. W. Fulbright (D) of kansas, chairman of the Senate For-' f, .1 eign Relations Committee, says Dr.1 taissinger's effort on this score has , .gone far beyond that of any other secretary of state in his experience., ? During his travels the committee'r, , has been recieving messages Via a& undersecretary, says Mr. Fulbright, and Dr. Kissinger has asked to meet', ,With the committee next week. ! Meanwhile, the atmosphere on the ? seventh floor of the State Department ? is described by some as "turned on." Clerical secretaries who went in reluctantly now are swept up in the ,glamour of it all. His energy is becoming legendary. t, "I worked with hint on a iiiiteen twilit 4 a.m.," ritiallfi ee ?fticlal "At ;t 'Mite i web Oa mentally but ho was , .4foing like a house afire, pouring in new ideas ant suggestions." k . Reaction to. Or., Kissinger's mest? 18'? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R00010029-0001-5 'sage on reporting from the field seems favorable. Younger foreign- service afters especially, who have been frustrated by the lack of in; tellectual stimulation at lower levels; , applaud the new guidelines. One FSO - NEW YORK TIMES 28 November 1973 Servi6e-Ex-p-e-cts to'. Lose Sisco] ? By BERNARD GWERTZMAN and South Asian Affairs, hadi of State'George W. Ball, N1:chi3.- speciii to The New or Timei Made up his mind to accept the] llas :deB. Katzenbach and tohn WASHINGTONcollege post some time ago be- N. 'Irwin 2d, for whom l he , Nov. 27? fore the current Middle ..East worked. Mr. Kissinger, when he .0- placed William P. Rogers --as ;Secretary of State, ordered 'delay on most high-level an- cpointments so that he could ihave a 'chance to review them and make his own recommen- Idations. " During his confirmation hear- ings, he told the Senate Foreign 'Relations Committee that hel expected to fill all vacant s9t.S by the middle of November, but.1 about ao key j.obs are ee;1?! Aitee to Mr. Kissinger eaid net the delay had beenicaused In part by the Seeretary's in- ttolvement es'Ae the Middle. Stoessel Appointment ?Seen. Sift.? To /tie franeition The most significant ambae- ,, ? , Sisco htLe agreed to sadorial appointment expected main .in his post as lone as netessary' to. maintain con- tinuity. in ?...he East diplomacy. He has also tol.11 ? friends 'that he had , no per sonal ?prohlems, in working With Mr, ' Kissinger or any. po-' ilticaU dissatisfaction with the, Nixon Administration. On Mr. Kissinger's recenti trip' to the Middle East, Mr.1 Sisco played a Major role in persuading the Israeli Govern- thent to accept the six-point cease fire agreement worked .but by Mr. 'Kissinger in Cairo. ? . The - assignment of Mr. e'Stoessel to Moscow would end a major and embarrassing va- Taney, but is not expected to' end , Mr. Kissinger's' preference for 'dealing with the Soviet leaders through the Soviet Am- bassador, Anatoly F. Dobrynin. A high department official twho recently resigned is Ray S. Cline, Assistant Secretary or Intelligence/ and Research, ,Who joined the Georgetown ? ..Oniversify center for, Stra. tegic' and International. Studies. adds, however, that if the Secretary ;Joseph J. Sisco, the State De- 'crisis. wants, more "think pieces" am: prtment's top official on Mid) The source declined to?name bassaciors must be kept Informed ;east affairs, is expected to the college pending a former , about high-level communications af- t ? leave the Government soon to. , announcement in the next few ? t .accept a ,college kpresideney,, al ,' weeks. fecting their countries. well-placed Administration, offi-. e Mr. Sisco's ekpected depar- ? Some veteran diplomats, with just a ,cial said today. , ? ;ture iS one of the more signifi- trace of cynicism, say there is nothing le ..The word of the departure ; can State Department changes new in the idea, that ? a call for ztiMri. Sisco, who 'has been, ' expected in the wake of Mr. , focusing on the "why" rather than the sivevediddnlievoElvaesdt din, the intenf-, 'Kissinger's taking over as See- !"what" goes out from Foggy Bottom. the last two months') diplomacy of retery of State in late Septem- ,',:beAr. , lever's; 10 3ieara. .- . as a surprise since it bad been department official said But, it ii condeded, "it's still a good , a a long list of Mr. Kissin- Assumed by many officials -that ste t, l . - .. he would remain ' workine for ger's choices to fill vacant am- bassadorships and Siete De- partment posts had recently been sent to the White House for final approval and, are. tiouncement, ? 'idea." . WASHINGTON POST 214 November 1973 o At State 0 ,-? ? Secretary of State Kissinger 'either in his present job or in new, one. , ? 1 i But it ,was understood' that 'Mr. Sisco; the Assistant Secre- 'tary. of State for NeareEasterni and French. He served two previous tours in Moscow, as a politicaloofficer from 1947 to 1949 and Counselor from 1963 to-1965. ? He also gained experience in the Communist world as U.S. ambassador to Warsaw from 1968 to 1972, when he re- turned to the State Depart- ment to his present job. . ? Stoessel's appointinent re- quires confirmation by the Senate. It was not known who will replace Stoessel, but it was understood that his replace- ment will come 'from within :the, ranks of the Foreign Serv- ice. . ? - By Richard Reston Loi Angeles Times ; President Nixon will ap- prove a diplomatic package next week covering a major shake-up at the top of the State Depaqment and . changes within U.S. ambas- sadorial ranks. t Mr. Nixon's d'ecision to move ahead will give Secre- tary of State Henry' A. Kis- singer the new team he wants to strengthen his leadership in the foreign policy field. The diplomatic appointments also Will fill , several long-standing vacancies in key American embassy posts overseas, partic- ularly in Moscow. It was understood that the State Department's top Middle East Expert, Joseph J. Sisco, will be 'named under secretary of state for political affairs, traditionally the third-ranking slot in the department. Sisco, now assistant secretary for Near Eastern and South Asian affairs, will replace William J. Pierter. 'Ambassador William B. Buf- fum is returning from his post in Beirut to take over the Sisco job; informed sources said. The new U.S. ambassador to Moscow will be Walter J. Stoessel .Jr., assistant secre- tary Or European affairs. His appointment will end a va- cancy there that dates back to Tannery. The last American ambassa- dor in at wow was Jacob D. Beam, who retired from the Foreign Service. early this year. Stoessel, 53, speaks Russian One unconfirmed report in- dicated ,that Porter might be' named U.S. negotiator in up- coming peace talks between the Arabs and the Israelis. t Other Major appointments In the package before the President .include Helmut Son- nenfeldt for 2 top job at the', State :Department. In recent years .Sonnenfeldt has been' _KisSinger's top Soviet expert; on ? the National Security. Connell. There also were reports that, William J. Casey, under secreel tary of state for economic af- fairs, is leaving the depart-. ment. It could not be deter-, mined whether this move is part of the package Mr. Nixon will approve. Informed sources said that the President will name a number of other ambassadors to key oVerseas posts, The pos- itions include ambaseadors for Japan, Argentina, Mexico, Chile, Columbia, Venezuela, Panama and Costa Rica. The President is also ex, pected to name a new ambas- sador to the North Atlantic Treaty Organization to replace Donald Rumsfeld, who appar- ently is returning homo from' Brussels; It was understood that Wil- liam Jordan, now on the Na- tional Securi: Council, Will get one of the Latin American to be made known in coming days is that of Waiter J. Stoes- sel Jr., the Assistant Secretary for European Adirs, as the new. envoy to , the Soviet Un- ion. ? ? Mr. Stoessel, who is 53 years old, has had extensive expe- rience in the Soviet Union, and sneaks Russian. His name has been, long 'entered, to be that likely- to be put forward to fill the vacancy existing 'since cJacob D. Bean retired in Jahn- ary: Authoritative sources said that Mr. StoeSsel's replacement as the department's top offitial on European affairs would be Afthur A. Hartman, Who is the No. 2 man in \the American mis- sion in Brussels that deals with the Common Market countries. Mr. Hartman, who is 47, is relatively young to ,hold the Assistant Secretaryshin, but he has been strongly recommend- ed by former Mader Secretaries 1.9 ApprovtiabRitItelea'A 2001/08/ 7 : CIA-RDP77-00432R000100290001-5 ?e: Approved ? WASHINGTON POST 12 November 1973 ossifying 1 ? - 4. ? ,. Liiiiit Asked.. . ? . . . . . , . ,. By Ripons ! .,,,,:i..? 4 ..:yainini that government ;Seek:icy is increasingly being !US' e7,C1:"Iiir the White House to *Stifle fibblie debate over for, 1 eigryptilley, the Ripon Society' iestercfay urged Congress to . ... . limit-the number of presiden- tial 'aides authorized to clas- rsify.idoeuments and to provide ;penalties for overelassifying rocuments. ? ,A. National Security Infor .mation Act proposed by the so iciety, a liberal Republican poi, cy and research group, would 'restOte a, balance between' he need for official secrecy to fensure national security and ittic need for official openness gto,:ensure . adequate debate,", according to a paper the or4 igaliization issued yesterday. : ;. '-"Although gOvernmental se- rdciS"'-is important for the na- ttonal:security, today its more ks4cnificant role is as a tactical, 'political weapon, employed by. 4the executive brb-nch to pre-, rent -.legitimate, democratic ;challenges to its ,nternational Tolicies," the tor ?_!ty charged: v .The society .recommended legislation: 0- i ? would guaran- ee thellor, , . Armed Services .,ancl? 1'6m...A Affairs commit licSfair' the k Senate Armed iServie.i.. and , Foreign Rela: ittioiIic : onUtees "access to all :toP;'S it informationwith-, out-a ., access controla im- tpOsei. ? : by ??the executive ?orrab ', ' ? Those committees; tn ..ot the White House, control the release .cif ,- 13-secret Information to other ? oembers of Congress,' Ripon ?uggeSted. . Although it was not singled :out as justification of the sod-. eiy'S 13-point proposal - for "presidential restraint," the White House decision to con- duct secret bombing missions In Cambodia .in 1969 and 197.Q . and disguise them as attacks In, South Vietnam' was the :most dramatic recent example :Of , congressional oversight committees being durived of :accurate classified informa- tion. 'Disclosure of the bombing :last July angered members of , the Senate Armed, Services Committee, who?with the ex- ception of Barry Goldwater (R-Ariz.)?said they had not been informed of the decision. ' : The Ripon Society also pro- posed that Congress fix the' length of time a document !should be classified at each , :clearance level, and that if the . White House wanted to extend4 the period "it should be forced! to ' accept .the ..burden ,,;ofai For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 POST*GAZETTE, Pittsburgh 17 November 1973 'CIA: 'When to Say Weber' 4 911HE CENTRAL Intelligence Agency -11- has come in for some heavy criti- cism over the last few decades. Almost nobody likes the 'idea of a secret po- lice or counter-revolutionary ? corps plotting ?or aiding in coup d'etats ? abroad and burglaries at home and us- ing techniques more appropriate to the underworld of organized ? crime than to. an arm of the U.S. govern- ment. ? Yet, from the tragicomic Bay of Figs to the overthrow of Diem to the secret subsidization of labor, student and other groups and of certain pub- lications, the CIA has by all reports been up to its spook's spyglass in dir- ty tricksterism in the name of Amer- ica's national interest. ,It is in the wake of Watergate-re- lated testimony, however, that a move is being initiated to draw more clear- ly at least some of the CIA's param- eters. Rep. Lucian Nedzi, chairman of the House subcommittee on intelli- gence operations, is working out legis- lation to plug charter loopholes which, by someone's interpretation, permit- ted the agency to prepare a psychiat- ric profile of Daniel Ellsberg and to lend to the White House "plumbers" ? material used in the Ellsberg bur- glary. ? According to its charter, the CIA Is supposed to keep its surreptitious nose out of domestic "law enforce- ment" matters ? the domain of oth- er ,hgencies such as the FBI and the Secret Service. For our part, we welcome any care- fully thought-out legislation which attempts further to insure against the CIA's becoming a government unto it- self, answerable to only a handful of appointed, mostly obscure officials and appearing at times to carry out a, foreign policy antithetical to the State Department's official policy and "proof." The society also urged Pres- ident Nixon to withdraw -his proposal to make leaking clan-, sified information a crime, re- rdless of whether or not the Information was properly clas- sified. By withdrawing the bill, the President could demonstrate his own willingness to "turn away from the obsessions of the past and turn to the great challenges of the 'Inure," Rip- on said, quoting Mr. Nixon's . televised Watergate statement last month. ? ? at other tjimes to meddle in domestic, policy. We caution; however, that anyr remedial legislation should be firmly, predicated on two basic observations: (1) the CIA, as a division of the execu- tive branch, was, is and will be,? no ? matter what proscriptive legislation says of. it ? subject to proper use or gross abuse by the chief executive, orl. whose integrity and wisdom much dei pends and (2) so long as this y,)lane - is planted with separate nation 3 COmL. peting with each other for natural re- sources; wealth 'and power, tt e bad practices among them will tend to drive out the good. Not .for one moment should even the most beneficent and generouS in- ternalist believe. that the dirty trick- sterism ? the prying, spying, politi- cal influencing and sabatoging ? as- sociated with the CIA is unique to it ? or to .this nation. ? . Nothing in the history of humans or in the study of their behavior sug- gests that other nations will forbear doing unto us, when it suits their in- terests; as we would do unto them, when it suits our own; unless, that is, ? they be prevented by our being fore- warned. From America's legitimate nation- . al interests, spying On other nations is not only acceptable but necessary. The questions are: (1) When, if ever, is plotting the overthrow' of another nation's government a legitimate function for the CIA or any' other U.S. agency? (2) When, if ever, is the ? spying on citizens and non-citizens within the U.S. by the CIA acceptable? (3) When, if ever, is tile breaking of the law and the blatant violation of personal liberties by the CIA 'permis- sible in the name of national security. If the first two questions do not admit to simple, sweeping answers, - the last one does.' It is "never." . 20 Approved ,For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 4,0 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASHINGTON STAR 8 November 1973 By Elizabeth Duff Knight News Service When the United States made a whole-hearted effort, to convince the Turks to stop growing poppies 1971, the idea was that in 10 ' years. America's heroin supply would be dried up: But the strategy has brought its own unlooked- for result:A growing hospi- tal crisis across the country as the supply of pain-killing drugs dwindles to hortage levels. The U.S. government's campaign to put an end to ' the growing of the opium- , bearing poppy plant in Tur- key is a great success -- suuch a success that the 'country now faces a grow- ing shortage not just of her- 'olin but also of morphine and codeine for legitimate use. The three U.S. drug corn-' panies licensed to import ,opium say the government's anti-poppy, anti-heroin pact with Turkey is mainly to, blame for the nation's di.' sappeearing supply of mor- phine and codeine. The gov- ernment says a drought in India, which was supposed to have supplied olaium for 1 ? ? medical uses, is to blame. Meantime, the nation's supplies of codeine and morphine ? both opium; derivatives ? continue to' , dry up. IN 1967; the ahree drug, firms ?L- Merck and Co.,,' , Mellinckrodt and S. B. Pen- ick ? had on hand about 50,000 kilograms of opium' and its derivatives ? a two- year supply. By last year,. 'that stock had dwindled to, 25,000 kilograms, and today , is down to a few thousand. "There's just no treasure; trove of this tuff lying! around anywhere any-, more," says one pharmacol- ogist. So far as is known, no one. in acute pain has yet been refused morphine by a hos-d ,pital, but it could begin to happen inn a few months, druggists ave. Demand by, ,the Medical profession for opium derivatives has risen about 20 percent over the' past year. "It could become very' , serious If mothing isn't, done, says American Medi- ' cal Association scientific ,writer Pram* Chappell. It WASHINGTON STAR-NEWS . Washinsion, a C., Thursday, November 15, 1973 ar: depends, he says on how 'severe the cold and flu sea- 'son becomed. Codeine is used mainyly in cold Medi-. cations. But the roadblocks to op- him imports involve factors/ from delicate International relations to Watergate. 1 Some nations stopped growing their own. The So-, ,viet Union, for example,,, 'Imported 200 tons last year, ,for the first time. Pressure continues to rise, ,on India, the only legal !worldwide supplier since', the United States began. paying Turkey to stop grow-, ing opium in 1971. But India this year suf- ,fered a massive drought which killed more than 20 ; percent of its crop. Once seen a solution, syn-: .thetIc substitutes for opium; 'derived painkillers devel- oped in the early 1970s :haven't been nearly as p0- ,tent as the original prod- ucts, 'says Dr. Joseph. :Cochin of Boston Universie ty. ' ; The import situation foil ,next year also looks bleak. Of the 385 tons the industry' ineeds, it will, probably get 0 near Marseilles. In Mexico,' ,'The United States is being one step in the. process is :flooded with "brown" hero-: skipped, leaving the heroin' 'in from Mexico ? at least, with a brownish color.' partially as a result of a .Thus, the drug's origin bei 'successful crackdown on comes simpler to deter-) sources of "white' heroin' 'from France and Turkey, Within the last year, a _the head of the Drug En-? combination df law enforce-I forcement Administration merit, diplomacy and treat-, said today. ment has caused a signifili John R. Bartels Jr., ad; cant reduction in heroin,! ministrator of the newly' abuse in big East Coast cite formed agency, said in an, ?les, Bartels said. - Interview that the Mexican The United' States pr- heroin ? previously un- Waded Turkey to restrict 'known on the East Coast ? the production of opium'' has recently been detected poppies that supply the raw .throughout the eastern: material for heroin and, at,. states. The two types of heroin l? *the same time, worked with' the French to shut down the tire distinguished by a dif-? forma In tho way thoy ore; ,M"gdill" 1?6'?, An intensive, treatment , produced, Bartels said. 'effort helped reduce the. d WHITE HEROIN comes; demand for heroin while, from Turkey and is proc- :narcotics agents sought to ..this'ACountry. That victory, however may be short-lived, Bartels, said, because of the influx from Mexico. I BARTELS SAID there is no way of knowing how' much heroin is moving through the underworld at: 'any one time.' But the kinds either seized or purchased' 'by 'by agents indicate where it is coming from. As recently as a year ago, 'none of the heroin picked up by agents along .the East t Coast had the brownish tint' of Mexican heroin. Of all of :the heroin obtained by the, ,agents throughout the coun-i itry, 71,7 oorooni woo WNW and only 28.3 percent brown. about 190, officials esti- mate. The 1971 deal cutting off: all Turkish opium exports ':might have been acceptable "o drug Orme, had the gov-' eminent not then talked, lIndia into producing less as well.' The crisis appexed hde waning early this year' when Sen. Stuart Symington .D-Mo., introduced a rnesi- sure ordering the General: .Services Adminie;ration to :sell opium from U.S. war' stockpiles. The Senate' quickly; passed the bill end sent it to the House Armed Serviced, Committee, which held' hearings this fall. Before7 ,reporting the bill out, they, requested more information', from the National Security`, ;Council. Then came the latest Wa-1 .tergate ?revelations. The opium bill, like so many. 'others, is lying dormant. Help may come from an: 'unexpected corner. Since' Turkey stopped production: nine months ago, the Turks have held new elections, and the party that won ?: promised to put Turkey t,back in the poppy business, 1 S By the middle of this Ayeat, ?brown herdin; wasi being found nationwide. Of, all the heroin picked up, 54.9 percent was brown and only 45.1 was white.' THE SHIFT from white to brown heroin has been even .more dramatic over a .slightly longer time period. , In fiscal 1972, 92 percent of -the heroin picked up was white and only 8 percent ,brown. In fiscal 1973, the average was 62.9 percent white and 37.1 percent brown. By the end of fiscal 1973, more brown than :White was being picked up. Bartels said U.S. officials :are working with Mexican ,officials in an effort to con- trol The flow of brown hora. in, but the long border between the two countries ,complicates the task. d , ,-- ORR KELLY. / up the,itraffo. essed in small laboratorieS rea Approved For Release 2001/08/07 : CIA*DP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100 ?), WASHINGTON STAR-NEWS Washington, D. C., Wednesday, November 28, 1973 ? Dopald Kirk Knight News Service TOKYI? ? The Japanese have their own special cure for the problem of drug ad- diction. It is called punish- ment. "The experience of pain and suffering is the best medicine," says Sidra Oni- take, chief narcotics officer for the Ministry of Health and Welfare. 'It is very rare after such an experi- ence for a patient to be cured and leave the hospital and then become addicted again." Japanese hospitals le ly can administer me done to lessen the paii withdrawal, but doctors narcotics officials alike fer an addict to sweat it in a special "protect 'room." The tough policy withdrawal epitomizes attitude of Japanese 1 and society toward drug in general ?.and may far toward explaining w Japan, alone among ind trialized, non-Commun societies, does not suff from a severe drug pro lem. gal- tha- 1 of and pre- out ion In two years, Onitake on reports, "we succeeded in the digging up the roots of the a w crime in this way." Since commit the same crime again and again." It was not always that way in Japan. In 1960, as ? narcotics officers report, almost with pride, the coun- try had a minimum of 40,000 addicts ? and possibly as many as 200,000. Then, in 1963, the country adopted a tough law that provided for sentences up to life for sell- ing heroin. "WE ALSO reinforced inspection at ports with the aid of police and customs offices," says Onitake. "Since most narcotics crimes were related to or- ganizations of gangsters, we decided to' sweep them out. by indicting and disor- ganizing them.' use 1970, he claims, there has ,go been not a single case of nY heroin addiction ? even us- though Japan has nine hos- ist pitals specializing in all er problems relating to de- b- pendence on drugs and alco- hol. "THE TP.EATMENT y give to of:diets in the Unite State is much too mild, Onitake, peerin t!.,?ough gold-rimmed glas es from behind a desk pile high with books on dru problems. I do understan you Americans emphasiz 'individualism' and 'respec for human rights,' but for ? total social betterment, our drastic treatment works much, better." ou While justitiably proud their record of stamping o the use of heroin, Japane officials admit they are no s- slightly stymied by the r emergence of a postwa problem in the form of th 3 use of stimulants ? "up e pers," in the American ver t nacular. The use of stimulant began a rapid rise in 1970,' says Toshi Kayano, senior superintendent of the crimi- nal investigation bureau of the national police agency. "Since then the total arrest- ed has doubled every year, up to 4,709 in 1972." keep them alert and an?xipus,' to fight. , 4 It was partly under 'th? influence of philopon that ' Japanese soldiers were able to keep fighting fanatically: to the death against seen-, ingly overwhelming odd,.. Soldiers shouting "banzai" as they charged American foxholes had absorbdil heavy doses of the drug-1j1 the form of pills or injeC-' tions, before the attack.-"::4 "After the war there were between 200,000 and 1 mil-- lion latent philopon id-, dicts," says Kayano, "Nit by 1958 the number fiad decreased to only 271 as.;a! result of our tough car15-1 paign against them. The problem appeared to hew been solved. , Narcotics officers attrib; ute the new popularity,-4of! stimulants to the efforts'bf underworld organizatidiis previously engaged in the heroin traffic. "IT IS DIFFICULT ,to manufacture philopon here because the police invest; gate closely, and you .cart even detect the odor of ? philopon factory," says of Kayano, "but they smuggle. ut? a lot of it from Korea." ? se .. w Kayano estimates that e7 two-thirds of the philopcnr y imports arrive here from e Korea Onitake is even more crit- ical of what he regards as the relatively light penalties given those convicted of possession or sale of narcot- ics in the United States. ? "Here in Japan everyone knows through education and our anti-drug campaign that narcotics is a crime that finally will destroy life and, in the long run, your country," says Onitake. "Once indicted here, a criminal will not be re- leased until completing his sentence. Otherwise he will THE WASITING'PON POST Thursday; Nov. 22,1973 rG-7 Po f ExpOrt 0 0 Is Rising' In ' L) ? ,By Frank Eidge? ..' ? titaltcl Prees'Internet.lon .44 ' ivirAmr 4- Jamaica: is :try- : lug to shut off its third larg- est export industry and US officials are helping, ' In the' page two yearstlie , Island nation has supplanted ..Mexico as the thief supplier . of marijuana, exporting f,to ? ,the ...United States ary: esti- mated one million poundslif .4he?narcotic weed per year.74 , . "It's Jamaica's third larg- est export, ranking behind , bauxite, and bananas," said 'Luther Cooke, intelligence ' Supervisor for the federal 'drug enforcement ? 'ageney's 'southeastern region. . ? Cooke's figures, on siiutb, ?eastern district seizures of marijuana coming out of.Ja- maica show the growth?!er the ? trade-4,000 pound's 'seized in 1970, 8,200 ponilds, :in 1914 and 28,000 pounds:/in , , ? ? ?? ? ???? ??r? ? So far this year, U.S..ati- ,therities have grabbed moro -? than 58,000 pounds of mari- juana imports from Jamaica. And that .doesrlit count the ? small lots picked up i?pb- lice arrests or truck ???ship. ? ments seized up north,'Such as some sizable hauls made by polite on the .New .Terse, ?'Turnpike. ? ? t? T More. ' significant, '? said Cooke, was ?the ? formation last May by the Jamaican ? ,government of a special nar- cotics squad. , "It was the ?first time' they have devoted a unit to 'just narcotics," Cooke said ' he Jamaicans handpicked men for the squad andl an they were really hand- ked. Good men." t paid off. In four short nths, the Jamaican 'Squad ckcd off at least 120,000 pounds of marijuana,'..'and for the first time Jamaicans ' arrested Jamaican nationals :for dealing in narcotics.' . Climate, terrain, and loca- tion has made the C rfh 'T i taped 10 - inside the clothing of air- me - plane passengers. , -..,:, plc I 1 ""?,:i Kayano blames the philoi, m0 s pon traffic in k , relatively light penaltie,s, which were levied on thosq, ? convicted of manufacturing?. possession, and selling. Tim maximum penalty was ?14 years ? and usual sen-k, tences were much less. ,.--1.4 beat ' 71 prod - , tf.7, "As of Nov. 15, a new laW, Tillihee alty almost as severe as all g is in effect making the pe o that for heroin," says Kay, mid ano. "Gangsters were in+, the volved in the trade in stimu? ..bnieltr lents up to now because the bills, penalties were much lighter,' . ' than these for hard drugs.; majkae Now we hope the law will trace. discourage them th , just as e I' 4-4 pitiolVadhh: 1963 law cut back the heroin ' KAYANO feats that the problem may eventually mushroom to the propor- tions reached after World War II. !Ironically the war was primarily responsible for the introduction of stim- ulants, notably a concoction known as philopon. It was mass-produced legally and distributed to soldiers to nation the leading ucer and supplier of the al marijuana' .mar4e.t. leafy weed growo%*10. ver the warm and .hy- island, particularlY..in mountains?Jamaica 'is - y -alIi mountains and ?? ? ; ? malca's ?? ?reindtene-s's s smugglers " hard ? ??.? en Cultivated; mart- grows profusely and cos two crops 4 years1 generally a comm,. . ? ?? ?ir"It .22 Approved For Release 2001/08/07 :.CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 nity project with 15 to 20" families?most of ?the resi- dents of a typical mountain : village ? ? e participating," Cooke nid. 'The head of ? the village, sort of a tribal chieftain, , oversees;' ? jke growini harvesting, drying and pac -ing for shipment.,"i e ? He ? side! the marijuanaeis: ? cultivated ? generally" on on small, reom:size clearings:0 groundetin the weeds or on' ethe sides of mouritairiS . which makes their detection' difficult, .? "Many, of these villager:S. :are So far up in the mon'. thins, it takes two or three, 'days to reach, them on fop.ti , packing your. supplies on. . mutes," Cooke said. The mountain farmer gete: from $3 to $5 a .pound for his "'grass." The smuggler, ? pays from $5 to $15 per, pound at the Jamaican awl and collects from $150 to:, $200 a pound from his buyer inside the United States. "A couple of guys with 30-foot boat can ?haul a cone. f eealed cargo of 1,000 pounds of Marijuana and net a ' 000 ' profit at the ? Cooke said. ? A pound of marijuana can ? be turned into 500 to .1,000; cigarettes with each "joint".; or "reefer" selling for 75, ? cents to $1.50 on the. street. Such profits are the reae son why people will risk a", 20-year prison sentence,' such as six Florida men re-.: ceived in federal court at. Gainesville, Fla., last week.'; A seventh man convicted ree ceived a 10-year term. The seven were found' guilty in the largest mari- juana haul recorded to date- ? by U.S. authorities. Agents: . seized 9.5 tons of grass: ; aboard a barge which ran aground off the _small north. . Florida Gulf Coast town of Steinhatchee last March 6. '. The previous record sei- zure was seven tons of pot at a Tampa dock in Septem- ber. . ? ? Although criminals have ? -.organized money and equip- , ..ment to smuggle marijuana efrbm Jamaica; Cooke said be doubts that the big national ' crime syndicates, are deeply, involved in the' activity:' ? With the formation ''ofeJie: ? mica's . special police 'nar- 'cotics squad, the thisineSs ? has become' much more ; risky. Last July 16,, the'. Sented seized 84,000 pounds oferfarie Juana in a :Janralcanesevaree' house.and arrested 12 Jainal:.1: cans. ? .- ? ? ? , "Ite represented the ha output of one comminute, '.for an entire year," Coieke ' said, ."and with the arrests, 'Including a couple 'of promi- . nent businessmen, dealt a significant bloat to the trade," ,.' ? WASHINGTON POST 22 November 1973 . Gets No Kic rom Cali Cocaine By Stephen ' Klaidman BOGOTA?An American, *as picked Up by Colombian authorities this month ite, the steamy proyincial capi- tal of Cali, allegedly with: :six pounds of 99 per cent; pure cocaine in his posses-3 , sion. His future is now un-; certain, but the ? future of s 'his cocaine is' not. It . be destroyed and become; part of the still-sketchy stae, tistical record being com- piled on the cocaine traffic through Colombia, virtual-;1 ;ly the only trans-shipment,,! :point to the 'United States! from the coca-growing areas ; ;of Bolivia, ,Ecuadier and Peru. The leaf of the coca bushei almost a weed on the east- %, ern slopes of the Andes, is; no kin to the cocoa bean. I, The traffic involves thou.:: sands of persons, millions ',of dollars; arid according to: k U.S. officials who keep al t close watch on the narcotics.; tt, trade, tit rivals heroin ifi! i volume, with 700 to 1,500' pounds a month being shipe ped into the United States.1 In some ways it is harder; to control than the morei ?' widely publicized heroin traf- ; fie. Turning Poppies into ( heroin is a fairly complex' process irivelving - sophisticated chemical' know-how, but refining co- , caine requires little more ? than a bunch of bottles in? s `a kitchen., \ In part because of its pricei and quality, cocaine appears to have become something of' a status drug. Its growingi use among the affluent mayi e also have to do with the fact 1 ? that cocaine users do not be- ;come physically addicted to 'the staff, unlike heroin us- ers. Cocaine is not a narcotic,i and the whole unwieldy in-1 Aection paraphernalia of the.f ; heroin addict is unnecessary; , "Coke" is just sniffed up the', enostrils for an instant high. . It acts as an extremely Owe ,erful stimulant to the ceme tral nervous system, whiI- ;heroin is a depressant. But high cocaine dosages can be, .lethal; it often induces un- controllable, paranoid behav- ior and its long-term effects' Washington Post Stott Writer ? ;the proliferating number of dealers. ?? Cost is another factor that tmakes cocaine traffioking ,,easier for the freelancer., ;The paste made from coca leaves, which is to cocaine what morphine base is to: heroin, is relatively inexe 'pensive, so a small-time up-' ?erator with a few thousand' Idellars can set himself up In business. This is not the ease with heroin. Another advantage for the ?small cocaine dealer is the' :availability ? of carriers in.') :Colombia, a poor country ,!where most workers earn1 "less than $100 a month. Most, 'Colombians can make more' as dishwashers in New York or Miami than they can at , home at whatever...they do,' so so they try to get to the 4 'United States. Hundreds apply daily for? , tourist visas at the embassy ' In Bogota ' and at the con- sulates in Cali and Medel- ',Iin. They hope to reach the , States as legal tourists and ? then disappear into the ' Latin barrios of the big ? 'cities and find works ? The U.S. consular officials !sceeen them carefully, how- :ever, and they are required to produce financial records 'to show that they can af- ford a vacation ? up north. i But false records can be had for a price. The price, free:: 'quently, is to deliver a few 'pounds of cocaine to a con- 'tact in New York or Miami. 'The number of cocaine ar- rests is relatively -small, but ;most are made in those two cities. 4 The professionals do not 'generally rely on such ama- 3 :.teur carriers. Usually, they 'fly their own planes, pick- ring up the cocaine in the vast and trackless plains of ? eastern Colombia, where t any flat ground can serve , as an airfield. ? , -Although ea Is virtually :impossible to spot planes that land in this area and i then take off almost im- mediately, the method has not proved to be quite fool- proof. Earlier this year another 'American flew an old World War II B-26 into the plains 'and allegedly picked up a 2,500epound to 3,000-pound load not of cocaine, but of a Mine-grown Colombian prod- .uct that is almost as Well known in some circles as 4116 country's bights)" rated "etiffeeeeetearietiano, t. But he met,,, with, a are unknown. ? ? , s Because the process Is' ,simple, the business has ate 'traded large numbers of .free-lance operators?as ope posed to the ? heroin trade,i which is dominated by or-. eganized crime--thus making' . to kVp track of, lightmisfortune. His plane' got stuck ? in the mud and , was. unable to take off. Ar-; :rested, and arraigned, he is, :awaiting trial in Bogota. e , ';Another arrest was made this spring on, Colombia'S., ),Caribbean resort island, San , Andres. Three ? Americans ? ;:who had flown to San An--; dres from the West Coast , ; of ? the, United States were picked up with their small... ;plane and 20 pounds el' co- ; caine. They were set free ? however, for lack of evi- , i,dence. U.S. officials arc work- i lag closely with the Colome. Miens to choke off the sup. ply, before it gets to the , :United States, and they ; ; claim some success. But the' problems are substantial,., ; as the San Andres case th- dleates. ? ? Colombian ? police and'' s judges get very low pay and, --. .according to both Colorn-e bian and American officials s.many of the judges especial- : ly are open to bribes. Sell.: eeral judges have been dis- , missed, and the head of' t Colombia's counterpart of ;?the FBI in the southern city .e of Leticia was arrested for ; trafficking. . But on the whole, Amerl- 'cans here advising on hole', ? to stem the flow of cocaine': :give the Latins high marks. ? Six U.S. advisers, including a t narcotics coordinator who is: a foreign service officer, 'hare arrived here since ?April 1972 and have helped , ; the Colombians form police and customs. units to corn-", :bat cocaine dealers. s ? Although customs collec- ? tion in Colombia has gen-.' , daily tended to be lax, U.S. 'officials contend that Co ' lombian customs officials :have taken a high interest narcotics, as has Presi- ,? dent Misael Pastrana Bor- rero, who has ?established a ?, National Drug-Coordinating ? ; Council. ; Despite the cooperation : ; from the Colombian govern- :ment,. the problem is still e massive and Seemingly ines .s?-tractable. It iseextremely ficult to make a. conspiracy , case in Colombia, so that ? ? even if one person is caught it is 'almost impossible to ?? breek up the ring. Some.; times, however, the ,Colom- , bians provide information;: '?tliet leads to an arrest the United States, where efe. ? Jed:lye criminal action is' easier. ? Colombia has considerable. ,geographical and logisticall, ..advantages for smuggling co- caine, to the 'United States., To, start with, it is near1 some of the world's lead-1 ? ing sources of the taw Meal 'terlal. , ticuador, Bolivia anal 'the supplier coun-; tries, Indians have tradition-S .allee ?chewed the plentifuli Approved For Release 2001/08/07 : CIADP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 'CiSii-leavcs?breaking thethl 'down chemically with lime; ,juice?to ;relieve cold andl fatigue, Vasically as a sup- iplement to an inadequate') ;diet. Peruvian Indians use thel word "eocada" to measure time and distance: It is the; length of a high?about 40; ,minutes?or the distance an, 'Indian can walk while high couple of miles. Colombia is not only near1 the source, it has a vast! `cOastline that is impossible,. to patrol iadequately. There, ? are many, sea ports, some very isolated; numerous; ;major airports, and a land, ;connection with Panama. ; i The drug generally corneal Into Colombia in paste form.; ;Here it is refined into al ,powder?of far more than; 90 per cent pure?and either. broken up into small lets; and sent out with individual, carriers, by air or sen, or. 'flown out in bulk by pd.' jvate. plane. Sometimes the lane has brought a load of) ;smuggled cigarettes to Cot+ ,lombia. When it arrives at it .U.S: destinatinn, the cocaine4, Is cut to bet,;'een 20 per centi ;and 60 pr.. cent pure and, Sold on -ie street for $10': ,to "$12 bag. Heroin, Whiehl ;is cif: to about 2 per centA rzris 'ef "cl for $6 to $8 a bag. 4 NEW YORK TIMES 28 November 1973 12 Charged in Conspiracy : To Smuggle Drugs Into U.S. , BALTIMORE, Nov. 27 (UPI) ?The United States Organized Crime Strike Force said yester- day that it had smashed a ma-. jor Maryland-based' narcotics smuggling operation that was bringing cocaine into the Unit- ed States from South America ? and seling it in Maryland and Washington, D.C. A Justice Department lawyer, William Pope, said that 12 per- sons had been charged with ? conspiracy to smuggle more than $1.5-million worth of co- caine. ' Six were arrested and six were still being sought, he said. Three of those- sought are in South America, he said, and ? the other nine charged are ? from Maryland. ? They were indicted Nov. 8 but it was not announced until after their arrests. I. NEW YORK TIMES 10 November 1973 ? :Plot. to Smuggle Cocain7e! Through Mexico Chakkeel .,ri ? Of len . n ? ? v; ? ?ee ? ?? . 1;iliettn. ent 'Here Accuses 6,i . Including . ,?? , ? Canadians and . One New, Yorker-t--- ';'i'.??? Drug Delivery to Hotel Alleged. .10 , Ohl ten . nottA at911X5 By MORRIS KAPLAN Yaz13'1VOiltreal's reputed top leader 'of ;organized crime, two other .Canadians, two Mexicans and a New Yorker were indicted by .a Federal grand jury in Brook- lyn yesterday on charges that ? they had conspired to import ? .and distribute cocaine into the -United States. '? The two-count indictment, ;covering purported smuggling :operations between Dec. 1, 19711, and April 30, 1971, al- :leged that nearly 20 pounds of ; cocaine had been delivered by ? a'io-conspirator to one of the 'defendants at the Riverside , Plaid' Hotel here. O -.The 'regional director of the ;Ding; Enforcement Administra- Celli John W. Fallon, estimated ,the street-sale value of the ?narcotic at more than Si-Mil- ? lipX: However, he indicated that thistransaction was a rela- AiVelk minor one. He said the ring was responsible for "a sig- 'Mean amount' of' both cocaine and; heroin stnuggled into this ? country over the last 12 years. ;,'Businessman Arrested ' The man accused as ringlead- er, ,identified as Frank Cotroni, ? 42 years old, of Montreal, and described as a businessman, was; arregted Thursday night after he and his brother, Vic- tor, left a restaurant. The Royal Canadian Mounted Police ap- prehended him at the request of the United State.s Govern- ment; which will seek to extra- dite :him. - The police also took into custody Guido Orsini, 37, of Montreal, a theatrical agent. The l'other 'Canadian, Frank Dasti, 59, also of oMntreal, was sentenced in Federal' District Court in Newark three weeks ago,jo 20 years in prison and fined420,000 as the supplier in American-Canadian heroin smuggling ring. The New Yorker, who alleg- edly received the drugs here, wag identified as Paul Oddo, 54,- of 2607 Jerome Avenue, the Bronx, a construction worker. A.Federal -Court jury convicted ,14a3yere last year of possessing 22 pounds of heroin. He is seri- ing a Seven-year sentence, in the Atlanta Penitentiary. The Mexican suspects, bath from Mexico City, are Jorge Asaf Bala, 63, a businessman; and Claudio Mertinez, 42, owner, of a typewriter sales and repair shop. AStif is serv- ing a prisOn,sentence,ortp. drng charge. , Route of Cocaine, Oiven, ? Cocaine, orginating in the mountains; of . South America, was brought into-Mexico and then smuggled across -,the 'bor- der into Dallas, -according ;to Thomas P. Piiccio,r. an ; aSsiSt- ant United States"' Attorney who. is .prosecuting .tht .4se: Shipments ,then went: by plane to Kennedy ,International Air- port:. ? ? But-the deals were consult- mated by the Cotroni organiza- tion, authorities said. Asaf sup- plied the. drugs and Mr. Martinez usually delivered them, they 'charged. In addition, Dasti delivered a package,' to Mr. Orsini in. Montreal, accord- ing to' the indletraent. The 20 pounds listed in the Charges were said to have been delivered,to Oddo by Giuseppe Catania;who was mined as co- conspirator but not a defend- ant. Mr. Catania, an Italian haberdasher from Mexico City, was indicted last Aug. ;21 as the pivotal figure in ,the flew of $132-million wrth of 'heroin from '..France to the United States stitt,Canada. ? 0? ?Mr, Fallon called .the 'Con- trod arreSt the' most 'important since that of Lucien Rivard in July 1965; Rivard,, a Canadian' citizen, and castermind :of ? a narcotics ring, Was the central figure in a scandal that involved Canadian' GOvernment ? merit- hers in an attempt to brige an attorney representeing the United States 'in0 extradition proceedings., Conviction of the charges contained in yesterday's in- dictment carries a sentence of 5 to 20 ytara .in prison on. each count and fines of $20,000. 24 NEW YORK TIMES 26 November 1973 MAY-AS DEFENSE TREAT', !Security Peet' Seen as' Her Pride for the ,Renewal of,. ';LLS. Rights .to Bases ?.I. ..? ' By JOHN * FINNEY '? WASHINGTON, Nov. 25 The Spanish Government is ex- i)ected by Defense Department: Offielais to demand a ,security) !treaty with the United State4 , as the price for renewin American Military base righ ,in Spain. 4.ust how the Administration ;Would respond to such a de- ;rnand, which would in effect formally, commit the United States to the defense of Spain, has not been determined, ac- :cording to Pentagon officials. Some officials, particularly in tithe Pentagon, would he in- !dined to accept on the ground that a treaty would only for- nialize an unwritten commit- tient the United Staes already ;has to go to the defense of 'Spain under the existing base- rights agreement. Other officials, in the State ;and Defense Departments ob- ject that acceptance would cloorn future base rights in Spain since the Senate is ?tin- (likely to !approve a mutual security treaty with Spain: t The United States has had base rights in Spain since 19(33, ;through executive agreements 'between: the two Governments !rather than by treaty. The Air, ; Force. has baseat Torrejdn and ; Saragossa 'plus a standby base Moran; the Navy operates a ;base at Rota to support Polaris ;missile submarines as well as ,some operations of the Sixth :Fleet in the Mediterranean. Originally the air bases ; in ;Spain were of direct strategic importance'lin supporting the operations ; of 13-47 bombers. But with the advent of inter- ; continental missiles and bomb- 'ers, their strategic importance 'has declined. They are now .Used largely for training and support of air tinits in Italy, Greece and Turkey. -. Bettina) it took nearly two ? years to negotiate the present !five-year agreement, which ex- ' pires In 1975, preliminary Inegotiations on a new one are ;expected to begin -.within the . next few.? months. ; t ;, Behind Spain's Wish Overtures alreadY mule. by ? Madrid Suggest to Defense De- partment officials that the only !major ? demand will be for a. fniutual security treaty. Should tthat be met, officials do not think that Spain would insist ! on the various forms of mili- ilary and economic assistance ;that has been her past price for granting base rights: They believe Spain's wish ; for a treaty springs largely frorn her aspiration for a posi- tion of equality' with-other ;European nations that are Oinked with the United States Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 !through the North Atlantie :Treaty Organization. Blocked over the Wears from admission to NATO; by Britain and the :8cluidanaVian states, Spain' could ; achieve somewhat the same statiis through 'a bilateral 'treaty with the United States. In addition, Spanish officials were, reportedly arguing that the potential Soviet-American confrontation in the Mediter- ranean has enhanced the value of the Aeterican bases while increasing : the chances that 'Spain could become inVolVed 'in a crisik without any present ,assurance; the United StateS would conic to her defense. . Beeause of difficulties tfv. !tOtintered in using the baSes BALTIMORE SUN 16 November 1973 diking the Arab-Isfaell war laSt .month, there is a question in :some quarters whether their ,value in support of United: States operations in'the Medi. terrancan is net declining ,still further. ' .A7 Without any specific notice ? to the Spanish Government, the %air bases were used for a few days by Air Force . tanker planes to refuel F-4 Phantona .jeta being flown nonstop from ,the United States to Israel.' Secret Understandin? g When this became known, Spain announced she would notl permit the United,' 'States' to utilize the bases In local ' conflict such as the. , 'Arabi Israeli.war," The stateniente lar L.S.,Eur ? By GILBERT A. LEWTIIVVAITE Perla Bureau of The Sun Paris?The Western Euro- 'pean Union is to be asked next week to endorse the establish- ment of permanent institu- tional machinery for consulta- tions between Europe and America. The move is aimed at fore- stalling possible "disastrous" effects of current differences between the two powers. Central to these is the possi- bility of America using the presence of its troops in Eu- rope to wring concessions out of the European nations in trade and monetary negotia- tions. A report from the European union's general affairs commit- tee, to be presented to the full assembly here next week, says of the establishment of perma- nent contact, "At the present juncture. when the very founda- tions of international order and peace are in question, such a step seems more essential than ever." . The report repeats previous European insistence on linking trade and monetary talks, but balks at American policy, as ;outlined by Henry A. Kissin- ger, the Secretary of State, of bringing the United States military presence \ into the equation. , "It 'would be disastrous if this interdependence (of U.S.- European relations] were to lead to. global bargaining be tween the United .StateS, and Pliasized (hat the- baia '665 only be used .to meet a threat 'against the security of the West condition set forth in the '1970 executive agreement. The concern- of the Spanish Government was that her ex. tensivo interests in North Africa might be endangered. ? The United States raised no :strenuous objections, in part because of a,secret understand- ing accompanying the 1970 agteement that the bases could mot be used for ,operations in. yolving anArab-Israeli conflict; ; As a result,?the.United States 'was forced to rely on the Lajes air base in the:Azores .as a rm, 'fueling point. Pentagon offi- cials acknowledge that without 'the' Permission of ' the "Polio- `guese' Government to use the 'base the airlift to Israel .wotild ?probably have been impossilile. , This fact is not .expected4o -bet ignored by Portugal whenNt coines to renewing the present 'Azores base agreement, whikh 'expires in February., In the negotiations so far, 'according to Pentagon officials, :Pertugal has not specified what 'it :expects -in return for the :use of the Azores base during Abe Israeli resupply effort. ; However;: they, expect that .s4te wlil ask a high price in nfilit :and ecenomic aid rather thitn ;demand. United States' diplo- matic ?Supnort on the' issue Tof ,Perttiguese territories in Afrla p e contact sought Europe in which security mat- ters could, be at stake because of trade or even monetary problems," the report says. Another report to be pre- sented to the Western Euro- pean Union assembly, dealing specifically with U.S.-European Security Itelations, chides President Nixon for failing to consult with the North Atlantic Treaty Organization council when U.S. forces were placed on' alert during the Mideast crisis October. ; It says there was "wide- spread, if private, condemna- tion" in Europe of the Presi- dent's move, which was "inter- preted mostly as ,a response to domestic pressures on the President." ?, ? The second report also says that American rebukes to Eu- rope for lack of co-operation during the crisis have made "relations more difficult." "For Europe it is not only the East that is a source of anxiety. Superpower bilateral- ism, as demonstrated this au- tumn in the Middle East, could impose a great strain upon European-American relations." it says. The report, from the Com- mittee on Defense Questions and Armaments, goes ? on: "The policies of the United States are increasingly, becom- ing a cause for concern to her allies in Europe. The United States seems less and less awailable in the process of leadership, ' and Itis now k the , turn of Europe to worry about the steadfastness of her Ameri- can ally. "Europeans 'are posing the question: 'Is the United States too strong to heed alliances?" "Weaker administration" In blunt terms, the defense committee report gives 'this as- sessment of the current situ- ation in America: "The Wat- ergate affair must weaken the capacity of the American ad- ministration to conduct its for- eign policy 'free from protec- tionist pressures . . The res- ignation of Spiro Agnew and the reality of a President-at- bay have combined to deepen a mood which could imperil Europe. "Many Americans believe that Europe is either' too mean or too lazy to defend herself, and ? that American forces ought not to be overseas 25 years after the end of the War." Turning specifically to possi- ble U.S. troop withdrawals from Europe, it says: "Con- gressional pressures for with- drawal press acutely upon the Europe neurosis: The fear of abandonment by the ? United States." Europe, It says, lacks the political will to develop its own nuclear deterrent on a scale to give it real defense independ- ence. The report suggests that a European nuclear conmit- tee, based, on Anglo-French co-operation, might be set up, possibly with U.S. technologi- cal help. But it says: "Any precipitate. American disengagement As' more 'likely to discourage, rather than encourage the Eu-' ropean will to self-defense. "The choice may rest be- tween rearmament and ac- quiescence. But, ,on the other hand, a European failure of will may oblige us to rely upon the size of the United States investment ,in Europe' to sharpen American interest in maintaining a global balance of power." 4 Approved For Release 2001/08/07 : CIABDP77-00432R000100290001-5 11 ? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASHINGTON POST 18 1\161/ember 1973 CU ad Reports': ? ()sable War 13y Michael Getter :.? i ? the intelligenee given to US b7, A Central Intelligenc ; that there was? no possibility, t Agency report late in Sepl ,ofthe outbreak of ?a war." .. :tember warned the White, Sourees say , there is no? House of a strong possibilityi 'question that ?in the period be7 ' that. war might soon break., ?tween the end Of September' aut in the Middle East, ael ?after the Israelis had chal- icording to reliable sources..; .lenged the CIA Warning?and 1 :just a day or so before the. r, The CIA evaluation, based mostly on ' unusually largel war actually started, the AMA - Egyptian .maneuvers n e a r?;. ,ed: States had accepted the IV,: ;the Suez Canal, did not go, :melt view that :"they ?ItheW i ? . kso, far as to predict flatly-1 ithat an invasion was certain. :best" and there was no ??cause 'for alarm. , '. . ?. Washington Post Staff Writer faeign couhtries suggested:: ??, ? it 13tit the signs were viewed; ; '.But Kissinger's assertion' as sufficiently ominous to be; ,that the intelligence available; Immediately passed along at! suggested ."no possibility ', of 'Very high 1 e v e I. to the the outbreak of a War', is re-, 'Israelis. , ! ?garded by a number of sen- ,lo officials both in and out of: Tel Aviv. however, report- edly disputed the American : 4 the intelligence ? field as ad, J; . ;interpretation of Egyptian oVerstatement at 'the very.'least. ' ;' ? , ? activity. Given the high es) , -. i? ' 4 4,Aside from the CIA report, ;teem in which Israeli intel-, , sburces here' ' suggest that iligence is held ?in Washing- other parts of the intelligence .ton and the closeness of the s ,cbmmunity such as the State' 'Israelis to the would-be wail 4 ? Department, while not making ;zone, the Israeli assessment1 . k. %Aright predictions of war- was quickly Accepted here. ; fie, were certainly ?exprest, ? As late as Oct.. 4, just two. ii$wariness. ;days before the war began,, t', he most difficult; and some? the joint U.S. Intelligence; say impossible, part of inte111-` 'Board, made up of represen- gence work, however, is 'the ;Olives from several intelli-i , cOfference .between ? gathering . gence agencies ? includingi ftectS ? and estimating inten; CrA---:took a common position tiOns. It is this difference that. thst hostilities were unlikely, Kissinger sought to emphasize. ? aCcording to informants here, at an earlier Ott. 12 press eon?, ? The readiness to accept the ference when' he was? lues,l; Israeli view, the failure to heed tioned about the ? apparent irt; some Unusual' danger? signals telligence failure in not 'pre" , and the general surprise of . dieting the attack. . ? .. , '.', 'the Arab attack has caused ' Kissinger said theti? that? considerable post-war concern. 'both U.S. and Israeli intern:" . both within the administration ? gence had been aware of the, *ar(cl the intelligence commit- pre-war build-up of forces in' tiny. . , ? Within the Pentagon's DIfense Intelligente Agency, ,it 'has been learned that the ? thtee top men?an Army co- lonel, Navy captain and senior official?who headed the Middle East intelligence lie,anch were transferred Out ofothose jobs in the aftermath of:the fighting. 11t the same .time, however, the 'existence of the earlier CIA warning, roughly one to two weeks before the fighting started, seems to suggest that the Intelligence community was not totally as flat-footed ' at-Secretary of State Henry A. ' IOsinger indicated at his Oct. :press conference. ? ? At that time, Kissinger said, under questioning that thn intolligenee at our dia. Itieptember maneuvers this ,,pal (beforek Oct. ,6),,,arid Egypt and Syria. He bxplained that Egyptian army maneu- vers on the west side of the Suez Canal had been carried' out during September in each, of the last 10 years. He Indi- cated that three times during, the week preceding the war, assessments had been asked from U.S. and Israeli intelli- gence agencies and that each time they 'concluded that "hostilities were unlikely to the point of there being no elf See of it." t Yet the earlier CIA report,, which informants say was con- tained in the more highly clas- sified version of agency re- ports that come to the atten- tion ,of only certain officials, reportedly Warned that, the ,26 WASHINGTON FOST 29 November 1973 Officials at Odds On AK Meeting . . By Laurence Stern -- . Washington Post Staff Writer ,. ? ! - In popular mythology, ' the Nationali 'Security Council IS the nation's Ultimate 0..crisis forum. i ? . ' It was in' this spirit, perhaps, thatl 'Secretary of State Henry. Kissinger and Defense Secretary James it Sehlesingerl ;referred to a National Security Council, 'meeting on the night of Oct. 24 when! 'American military forces were placed on; World-wide alert. t i ;? Now the White House acknowledges, that there was no meeting of the National: ,Security Council on that night of putative, International peril when the word was; :flashed to U.S. air, ground and sea forces ;to go into a high state of readiness. ;- "That meeting is not in our formal' :listing of National Security Council' meetings," said NSC staff Secretary,1 ;Jeanne W. Davis. This was corroberated, :by the White House press office. . 1 i Yet Kissinger, in his Oct. 25 press con?;- ,ference, said the . President called ? "a' 'special meeting of the National Securityi Council" at 3 a.m. that same day to order, ,the precautionary alert. ? Kissinger added that "all the members, of the National Security. Council were, 'unanimous in their recommendations as ; :the result of a deliberation in which the )President did not himself participate, and'.: Iin 'which he joined only after they ha& .formed their judgment . . ." ? ''- Defense Secretary - Schlesinger, 'the; "same' day, said it was he who initiated, i - ;the alert after a meeting of the "abbrevi: ltd. National Security Council,", though' added that "the President was in com-; IPlete command 'at all times during the course 'of the evening." , i Kissinger said the NSC meeting tooki iplace at 3 a.m. on the 25th. Schlesinger ;timed it at 11 p.m. on the 24th. The Presi-.1 ;dent said it was he who ordered the pre- 'cautionary alert shortly after midnight'l On the 25th after "we obtained informa- tion which led us to believe that the, ;Soviet Union was planning to send a veryi 'Substantial forte into the Mideast, a mili- tary force."' . . , !,' White House records list only two i meetings of the National Security .Coun- , - 'year were different and more bminous than the past. informants say there were 'many more troops 'involved than in the past, more ammu-' nition being used and stock- piled, a much greater logistics build-up ana, perhaps most im- portantly, more field comm. nications being hooked up and operated?something which occasionally can be listened in on by electronic sensors. The ?transfer of Mobilo within the Defense Intellio genet) Agency, according to one source, came about ? be, cause of Some strong obje62:1 ;firms voiced by these offielali [before the war started to the rvalidity of these danger sig- At his Oct. 12 press confer- ence, Kissinger alluded to the "gravest danger of intelli- gence assessments". . .the tendency to "fit the facts into existing preconceptions and to make them consistent with What Is anticipated," By and' Lintel the prevailing view sine tile 1151' War had been that the Arab armies would never risk another hu- miliating defeat at the hands of ,Israel. ? . ?? . Approved For Release 2001/08/07: CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ell during 1973. One was on March 8 and, one on April 12. White House spokesmen would not divulge the topic of either' meeting. The meeting that occurred the night nti Oct. 24 or: the early morning hours of Oct. '25?depeqding on whose version is ac-: curate?ineluded only two of the four' istatutoteetmembers of the council, Secree tary of ;State Kissinger and Secretary of: :Defensel, Schlesinger. The other two mem-1 hers are the President and the Vice Presi-: dent. Mr. Nixon was, by all current ti;counts, upstairs in the Whi House while his cabinet aides were meeting in the basement Situation Room. here was no ready ex.' planation of why two Cable net officers, both famous for their Washington bureau- cratic street wisdom and for .their precision of public ut:i teranee, should be in dis- agreement with the White Ilemse and NSC over wheth- er the meeting in which they, both participated was or - was not an NSC meeting.' ; In practice formal NSC meetings have become among the rarest of Wash- ington phenomena. The two meetings this year coinpars ed with three meetings in '19'72 when the administra- tion was engaged in the .complex exercises of detente summitry and extrication from ietnam. "The formal NSC meeting is a cosmetic, a fiction," in ;the view of a former high- ranking staff member. "As a forum it has become un- wieldy. There are people there the President may not want to .be there. Papers have to be written that bureaucrats receive and circulate," "It hadn't been used in the original textbook sense since the Eisenhower years." Nevertheless Presidents and their press spokesmen have persistently fostered the notion that in moments of national gravity the NSC, In its collective wisdom, has ? provided benediction to the policies finally adopted. After the Tet offensive in Vietnam in January 1968, for example, President Johnson called an NSC meeting and invited news photographers in to record the high seriousness of the occasion. It was not until days and weeks later that, the policy resp'onses to the, Tet attack were decided. More recently, in the con- troversy over falsified U.S. bombing reports in Cambo- dia, former Secretary of De- fense Melvin R. Laird said the orders for falsification of the reports came from the National Security Coun- cil early in 1968. One former USC staffer, whose business` It was to know the NSC agenda during that period, NEW YORK TIME 25 November 1973 Anatomy, of the October Alert Action Was ownstairs; President Was Uristairs --?WASHINGTON?It is the night of ,Oct. 24, 1973. President Richard M. .Nixon is fading what he described twill; !days later' as "the mint difficult crisis we have had since'the?Cuban' cohfren- tation of 1962. ? ; .He is facing it,. according to his 'aides, in the 'seclusion of his upstairs living quarters in the White House. :That is where he stayed thtoughOut. . the crisis, but that is all that is known, 'perhaps all that will ever be. known,' 'about his activities during. the hours, when American forces were placed 'on, an alert, ready to counter e.ny Russian, movement of troops into ,the Suez Canal war zone, . , ? . In his press conference of Oct. 26, the President gave the clearimpression that he had been in active charge of ' the American action. He said: "When ;I received ?that information I ordered shortly after midnight on Thursday morning, an alert fOr all American forces around the, world, . I? also ? proceeded on the diplomatic faint. In a message to Mr. Brezhniv, an-Urgent ;message . . ." ? But on Oct.. 24, while the President: ,remained upstairs, the nian who con? ceived the alert, Secretary of State. Henry A. Kissinger, 'and the Man who, called it at. 11:30 P.M., Secretary of Defense James R. Schlesinger, were two flights below in the basement Situation Room of the White House, 'running the crisis by their own :flourescent lights add telephoning Mr.: Nixon periodically to obtain his an-, !'proval for their actions: ? . And it is IOW certain that bOth the` 1 timing and. exact nature of the ;alert: were acted upon Without the Presi-. !dent's specific' prior approval:. Mr.; 1Kissinger and. Mr. Schlesinger acted alone after' getting 'the President's, earlier, general approval over. the phone for an American policy that ; eluded both a firth political response' and a military. signal. And Mr. Kis- 'of bombing policY in Cambo; dia being on the Council agenda. Below the level of the full: Council, the intensity cif at- tivity picks up. The NSC staff is a study in perpetual' motion. Since the arrival of Kissinger as National Secu-', rity Adviser to the Fresh-, dent, its members have worked the longest hours in; towrf.--- Under Kissinger , the, Council staff divides and subdivides into various; working groups dealing with the myriad issues?from the' possibility of a government toppling in Latin America to% , the hardness of Soviet Mls- i tile sites?which term the 'President's percept The of said he had no recollection national security, , Apprcked For Release 20048/07 singer now admits he was amazed; when the alert, instead of. remaining a quiet but clear signal to the Soviet .,Union, showed up' the -next morning headlines and telecasts all over the United States. ? What really ? happened that night when' the line between; Washington and Moscow'' remained,1 'cOld ;and Soviet and American diplo- mats Scurried ;through the autumn ,darkness;?; ? '! In . the IMInCdiate 'ait'ertnatie Soviet' !officials. aid' Mr. Kissinger briefly considered 'Making pOblic the entire strange exchange that led to the alert, including' the note from', /Leonid.Brezhnev to Washington which which was later, described as "brutal,",, ,"tough," or leaving "very little' to the irpagination." . ' ? 'At a news' conference' 12 hours after,' the alert was Ordered; Mr. Kissinger Was asked to detail the information that had made the alert necessary. Some' reporters raised the possibility' that the alert was designed chiefly to serve domestic political purposes by' 'diverting attention from Mr.' Nixon's; -Watergate problems. Seemingly mere' in . sorrow than in anger that such, :doubts should, be raised, Mr. Kissinger. ,admitted that; they were "a symptom,. ,of.'what is happening to. our country"' and pledged he would provide the:full .account?saying it would convince any) . skeptic?as soon as. the emergency. had,, :passed. ? ? : .; ? ? ? Cast week, with the United States', and the 'Soviet Union once again' 'cooperating, MreKissinger. Said he "re-1! Igretted" his earlier promise. To 'make 'the inforination. public now, he said,: 'might upset the rediscovered mood of ; 'cooperation. Intended or not, the net effect of the two press 'conference; statements was- that. the Administrae! 'tion's Most respected-figure 'had stilled' critics during the emergency with his':! ?promise of full disclosure, then with4 ',drawn 'the promise, when the public's:, yconceni with the crisis had passed. So there will be no. ?Mael account for; ;some' time?perhaps not for. years. ? ! Although he would not provide the' diplomatic and intelligence information :that led to the .alert, Mr. Kissinger: was willing to talk about.some aspects) !of. the war of nerves with Moscow.' On. the basis- of talks with: him and', other American,,Sovietend Israeli offi- cials it is possible, however, to make,i a" preliminary reconstruction of whit ,1 ow appears to have been less a ?fulll ,,blown crisis than a firm test of ,super; "-power wills and* tactics. 'The test began with the situation in the Middle .East later three weeks' of 'war, With Egyptian forces in whatihad been the IsraelWield Sinai and Israeli, forces in whet had been 40Ptittfrheid ,Igypt,' West of .the 'Suet Capita. A Mar fIrti had been accopted b,yi both Patticl 00,42-and then breaohegt;; : CIA-IRIP77-00432R000100290001-5 ? r? Approved For Release 2001/08/07 : CIA-RDP77-00432R000109290001-5 mainly by the Israelis, who coniplete encirclement of the Egyptian?III,:Corps .on. the Suez east bank: The growing ?desperation of the Egyptians' and .theirl ,Soviet patrons prompted a radioed plea at 3 P.M.* E.D.T.. Oct. 24 by PreSide4 Anwar .el-Sadat for a joint AnteriCand4 Soviet task force to enter .the region and enforce the cease-fire of Oct: 22. Some American officials were sure theit Russians solicited. 'this plea as a. war to establish a sizable Soviet' ForCe ir4 ? ,the. disputed Canal ' t But all was calm in Wasiiingten;.1 &? ? tn:Ch though Soviet air and ? .for*,i'including? seven landing. ships, 'were, !'inilling about" 'the Medi7j. 'terrinpan, and --seven 'Soviet airborne; 'division ? with 40,000? froons. were O& the. alert '? .; ' ? But :there ? had been *Soviet airborne' ,troop' 'alerts 'before' 'and one 'Mere: 'Soviet landing. craft 'in :the " eastern'. 'Mediterranean 'earlier. As', late: as P.M., Mr.. Kissinger..and. Soviet Ant47. zbassailar .Anatoly' Dobrynin were :har4' tmoniousty.discusSing the details of intil Pleinenting 'the :cease-fire. : ? r About 8.?P.M., Ambassador Dobrynin, xeturned:to.theState?Departinent with note froth. Mr. Brezhnev ;Me.; Nixon, :taking -Up President Saildt's.piedi .for a. jOint American-Soviet expediI1 tionary force. 'The 'note -urged. Ameri'% can participation; ? nothing . more. Mr.1; 'Kissinger :cenferrediwith :the Pre.siden0 by, phone. ?and quickly handed' the! :Russian env:" a Teply'with a:firinito;;.t that It ? could be disastfous:t tivr:' eboth superpowers in a tense') .;sitv/ion: on the ground. .? tild at the ? 'United 'Nations, the; ? ,oviet delegate in, the: Security CounA c11,. Yakov ? Malik, was' 'accusing .the', :United States of breaking .the cease-t1 jire.bargain by. allowing Israel to gairil ;more Egyptian territory.. He demandectf, IOU the United States accede to the; ISadat. request for a joint expeditionary .'force. The American-delegate; John A. 'scan, informed Mr. Kissinger of this development..: , . ... About .10:40. P.M.; , Ambassadouti iDobrynin.:, returned with. a ,.,.second,i ;Brezhnev note to the President. Afterl Castigating thelsraelis, it said,,aceord-4 !fig 'to two officials 'WhO 'read it: "We strongly, drge ,that *ea..; To' en friite: tliF tege-fire'aiid;'iryoui do not, we may be obliged to conSider: acting alone.':' . ? The threat?of a unilateral' IrisertioW of Sbviet forces into the: battle'ione 'was ? more implicit than explicit.. But; lIt's effect was electrifying. - . '?? ...i i The United 'States could have lake kthe suggestion of unilateral action in, stride, Mr. Kissinger said later, yeti' Juxtaposed' with the rising demands': of Mr. Malik at the United Nations,: NVith, the alert of Soviet airborne force.?4 land the movement. of: Soviet landing' 'craft; it signified the possibility' of al ireally serions Russian military htove:1 . : Mr. Kissinger phoned Mr. Nixon) again, :recommending .a firm political, response, backed up ': by a militaryi signal. The'p the 'principle, agreed to e: principle, bile left Mr: Kissinger ' to! decide :what 'fOrm the responses wotild'; take. Mr. Kissinger then Convened al ,formal ' session of the seldom-used' 'National Security Council. M consti- tuted,' the N.S.C. has. six members,, including the President. but Mr. Nixon was upstairs. Mr. Kissinger Wa.therej :i'in his dual capacity as Mr. Nixon's. ;adviser on national security affairs and ttas Secretary of State. Mr. Schlesinger .was there as Defense Secretary. And' that was it. There was no Vice Presi- dent and no-Director of the Office of ?Emergency Preparedness; the office has been vacant for 13 months. "OffiQ;I i;cially the meeting consisted of Kis, ;Singer, Kissinger and Schlesinger,'! al Council aide commented. L4 Belatedly called in for the 11 sesSlon :was William Colby, director: i!of the Central Intelligence, Agency.: :Also present, as the military adviser, as Adm. Thomas Moorer, Chairman:' of the Joint Chiefs' Of Staff. : ' The two 'principal :participants, .Mr:; t:Kissinger and Mr. Schlesinger, swiftly, bt agreed on the modified alert ' call: . ,...: I known as the Defense Condition 3, the 'middle on a scale of five alert Stages.; After transmitting the alert to' thel: rtervice chiefs at 11:30 P.M.; :Mr.: Achlesinger and Admiral MoOrer ,dis-'+, cussed the :situation for ' another tWer' hours. . Then they drove acroa?::thel POtorriae to put the'finishing' toutheai on the alert. They, finished' about 2:30. 4.*.Aro.,ivtzli:.110me to bed "--: ..A. i;.4,,,,, 28 Iiifoiined7 ? Israel's Ambassador Simcha DInitz 14 .the deyelopments.:This had the effect toLletting Tel Aviv know that, while ika, the United States was acting to prevent' '.. Soviet landing, it would :welcome: in Israeli action to easeteriSiops along; . .. tthe Suez. , ? Retrospectively, it is I Safe to con- , elude the :Soviet .threat and the Anted.'" Can alert caused the Israeli leadership to cease ;using the plight of the Egyp- tian' III .Corps ,to extract new -concea-: ions from Cairo and toailow:the Uhly; Cd Nations *units to enter Suez- Oct.. 21.."I ti Mr.:Kissinger also drafted' a note toi, Mr. ?Brezhnev for .the President,: firmlyi 'stating. the, United., States .would , not' tolerate a Ione:Soviet military niove in the Middle East - a.nd urging Soviet !cooperation in 'support of a United,: iNations 'resolution establishing. a .new, . :peacekeeping force for the?battle zone:i ' -About 3 .A.M. he went upstairs to; ;?Mr..Nixon andobtained. the President's: 'ratification of ?all...these actions: 'Then' 'both turned in. .. ? ' .. ? .-",:i. 1.? Mr. Kissinger concluded that by pus' Itime the .Sovict Union would haVe,, tmonitored the signals putting' AmerP,';. ; ?on forces ? on' alert. The stiff:tote iii' 1yrr: Beezhnev was-dispatched about '4 , .'Abeut 7 A.M. Mr. Kissinget-, woke up; . to, watch the television news and :he was, he later recounted; astonishedz to learn that the alert call. "he bad; toped to keep confined to the world .ofI diplomacy was being broadcast to the; American people. ' . .. . . ? ....i , From all this, It, seems clear there:: . was aii actual crisis, but a potential! 'crisis. That is'why the Presidentstayedt, ;upstairs. and that is why the hot line:4' . was not 'used: Only after the news of", :the alert was.broadcast, did Mr. Nixon decide . to ,dramatize it as a .crucial;', personal face-off against the Russians;: ,in any. case, a little more than 12; hours .after ' the. second Brezhnev nota".; :was delivered; the Soviet Union al4 lered :its stance in. the 'United Nations') :and tea support, to the American resol Iution 'authorizing',a United. Nation ;Peacekeeping. force .for the.. disputed-1 Suez region. prom then on the - situa-,; ',.tion. improved; ? ?',. --DAVID 'BINDER4 .1.? ?? : ? .-:,'.... ..:.....;.).-' ; - Approved For ffeTe-iii-2001/08/07 : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ? 0, ? THE ECONOMIST NOVEMBER 24, 1973 rabian nightmare for the conomy. Washington. DC e oil shortage has thrown the econo- *c forecasts for the United States in 1974 into complete confusion. A supply- *nduced recession, the first ever, is now a istinct possibility, though the fore- asts at this stage?based on incomplete knowledge of how the supply of oil pro- ducts will be divided among the ultimate users?are tentative. At one end of the spectrum\ is the possibility of scarcely any damage at all to the basic economy. If by voluntary or compulsory means there can be brought about a 15 per cent reduction in consumption by private cars, home heating (through lower tem- peratures) and commercial establish- ments such as shops, there will be enough oil, despite the Arab embargo, to supply industry and electricity-generating plants. This is the official estimate made by Mr Herbert Stein, chairman of the President's Council of Economic Advis- ers, and there seems nO reason to dispute it. However, achieving that 15 per cent reduction is another Matter. No one knows how much will be accomplished by such devices as a nationwide speed limit of 50 miles an hour, permanent summer time, and by appeals for more car pooling by commuters and presiden- tial requests to keep homes six degrees cooler this winter. If Americans want to be co-operative?and there are some, such as the Washington Post columnist, Mr William Raspberry, who apparently believe the whole "crisis" is a fake some- how dreamed up by the oil companies? they could accomplish a great deal. But the likelihood is, despite much agonising in the government, and publicly expressed reluctance by the President, that at least petrol will have to be rationed to con- sumers to accomplish the purpose. Such men as Mr Stein and Mr George Shultz, the Secretary of the Treasury, would much prefer a steep new petrol tax to the "nightmare" of rationing, but this route stems to be effectively blocked by hos- tility in Congress. By contrast, Congress seems quite willing to grant the President the power to ration, as he has asked, on a "stand- by" basis. The Senate passed a bill to that effect on Monday, and the House of Representatives will return to considera- tion of the subject next week after its Thanksgiving recess. Petrol would be rationed not so much because of any grave shortage of petrol itself, but to help shift the "mix" of refinery output toward middle distillates and residual oil needed for electricity, transport and industry. Much less likely, but still possible, is rationing of heating oil to consumers.. The problem is one of bewildering complexity, but an example of what could happen is supplied by the steel industry, which says that if it is limited to last year's supply of fuel, it will have to reduce its current booming production by some 10 per cent and lay off 60,000 workers, The petrochemical industry; which tom oil Its a haalo rem:Wank, Flaya that a shortage of the wide array of plastics and chemicals it produces could result indirectly in a loss of 1.6m jobs, although this is undoubtedly a self- serving estimate. In a first decision on priorities, the government decreed last week that farmers, local bus companies and energy producers such as coal com- panies could have all the oil products they needed for the next 60 days. More of this kind of thing is likely. At this early stage, what seems most probable in the coming winter and spring is a series of spot oil shortages for both consumers and industry and temporary interruptions of industrial production. How much these would affect total out- put and employment is anyone's guess. The most dire forecast has come from the National Petroleum Council, which estimates that the unemployment rate could be pushed as high as 7.7 per cent (it is now 4.5 per cent of the labour force). This is disputed not only by Mr Stein but by such outside economists as Mr Otto Eckstein, a member of Presi- dent Johnson's Council of Economic Advisers. Like others, Mr Eckstein is in process of shaving off 1 to 2 per cent of "real" (after allowance for price changes) gross national product from his forecast for 1974, which would leave the economy with miniscule growth, but still growth, . and with only a modest increase in un- employment. The truth of the matter is, that no estimates can be much good at this point. ? Before the sudden oil emergency created by the Arabs?who supply directly or indirectly at least 10 per cent of the country's oil consumption?the forecasts were tending to cluster around what is known as a "growth recession", meaning a sharply reduced rate of growth. in 1974 but not an actual decline in out-, put which would qualify as a recession. The forecasts were based as usual on! assessment of the sectors of demand.; Strength in business investment in plant! and equipment and in stocks, together. with some ? increases in government spending and booming exports, were pected to .offset the drop in housint construction and probably sluggish con- sumer spending, particularly on motor, cars. Actually, a significant slowdown in: growth has already taken place, with real: girp in the second and third quarters rising at a rate of only 3 per cent com- pared with an unsustainable 8 per cent in late 1972 and early this year. Housq- building, badly afflicted once again by,it. shortage of mortgage money and higit interest rates, has plummeted. At th0 beginning of the year new houses wer,. being started at an annual sate of 2.5t4 this fell to 1.6m in October?a steeper` decline than expected. Even without a dire oil shortage for electric power and industry, the spot shortages and resulting bottleneeks in the supply of various produres- ?some of which are already in short-supply as a result of the recent boom and of insuffi- cient productive capacity?could tip the scales from a growth recession to actual recession, as the forecast of the Wharton School of the University of Pennsylvania now tentatively expects. It would be a weird, indeed unprecedented, combina- tion of weak demand in some parts of the economy supplemented by insufficient supply in others. Not too much should be made, how- ever, of the semantic distinctions about "recession". To the vast majority of Americans it will not make much differ- ence if the gnp next year grows by 1 per cent or declines by 1 per cent,-though the history books would have to record the latter result as a recession. Far more . important will be the psychological . effect on Americans of such things as knowledge of the country's. dependence on imported oil for a third of its total supply, the awakening to how much energy they waste and the unaccustomed fact of outright shortages. How all this ? will alter national attitudes remains to be seen, but things will never be quite the same again. Where the oil goes 0 2 4 ' Cohsumption of major products, thousand trillion BTUs 1972 14 16 , MUMWM11111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111' 7,MM 1:::W/eiiieFAO" HOUSEHOLD a COMMERCIAL INDUSTRIAL ELECTRICITY GENERATION ea;c7,t111=114111,s. Total domestic demand USE AS RAW MATERIAL 32,812 trillion BTUs Approved For Release 2001/08/07 ? CIA-AD1377404320001002uuuu1-5 29 18 TRANSPORT Liquefied gases Jet fuels kit ffil pionata fuel Residual fuel Still gas WASHINGTON POST 3 0 OCT 1973 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ii Fir - By Dan Morgan . ..WashInston Post matt W,riter Major American oil c-ompa- nies, -faced with unprece- dented Arab embargoes, are seeking government backing for a common overseas oil pol- icy which might require broad exemptions from anti-trust laws. The effort to draft a joint policy which the government could actept ? Is in the initial stages. Oil company execu- tives say that the policy will depend heavily on what hap- pens in the immediate future between the United States and the oil-producing countries of North Africa and the Middle East. Details of what the major oil firms want In terms of Government cooperation and support are still unclear. How- ever, executives, who attended a meeting at the State Depart- ment Friday with Secretary of :State : Henry Kissinger. said that current anti-trust laws now make it difficult for the companies to adopt a common ',- front in dealings with the Al abs Several years ago the major : ,companies asked for and re- lceived a business letter from the?Justice Department assur- ing them that their joint nego- .tiations with the oil producing ?countries on prices would not violate anti-trust. legislation. ? However, sources in the oil industry say that the waiver apparently - does not cover such joint, steps as boycotts of oil from a particular country, joint marketing arrangements, or any other steps that could be construed. as 'preventing competitors from making their :own deals with producing na- tions. ? One. oil conipany executive said that when the present cri- sis ends in ?the Middle East, the oil 'companies must "find a mechanism" in which they can.. "got together and work out a policy." He said anti-trust laws now make this difficult. State Department officials stressed yesterday that no agreements had been reached between oil company repre- sentatives and the govern- ment. They described the post- tion of both. sides as "an in- terim posture." Secretary of State Kissinger is reported to feel that, at this time, the oil companies shoUld THE ECONOMIST NOVEMBER 17, 1973 Oil in the alliance Washington, DC However short it may be of the real thing, the Upited States is now trying to pour diplomatic oil on the troubled waters of ' the Nato alliance. During the Middle East war the United States and its European allies parted company over two main aspects of American policy. Only Portugal gave the United States full overflying and landing rights for American aircraft carrying military supplies to Israel. Portugal is now repor- ted to be pressing for something in return ?a higher rent for the use of the Azores base and also, rather more embarras- singly, support for its African policies. West Germany objected publicly and vociferously when American supplies were loaded on Israeli ships in the north German port of Bremerhaven. The other European complaint was that America's allies were not consulted on, let alone timely informed of, the decision to put all American forces on alert on October 25th as a warning to the Rus- sians not to overplay their hand in the Middle East. Mr James Schlesinger, the Secretary of Defence, and the German defence minister have now agreed that the United States is free to use German-based, equipment as it wishes, provided it does not' repeat the indiscretion of using Israeli ships. Both governments now admit that they over-reacted. Certainly the Nixon Administration admits that public state, k Unite stay in the background and ? leave the administration to try to stabilize the situation In the Middle East. Oil company officials say that the United States will be at least partially dependent on supplies from the Middle East until tile early 1980s. They also feel that even with a set- tlement of the Middle East problem, powerful ? political 'forces, favoring production re- striction will continue to ex- 1st in that part of the world. .. .. 1 Some of the immediate do- , . mestic American oil losses, ' from Arab production . cuts and embargoes can be offset' 1 : by diverting shipments from ! Indonesia, Nigeria and Irazi which are earmarked for other ' destinations, officials said yes- terday. European countries, except for the Netherlands, are ex- empt from the embargoes of such major arab" producers as Saudi Arabia. However, Amer- ican firms control most of the Saudi installations, and also transport the oil in Ametican: chartered vessels. This means that sonic measure of coopera- ments from the President, Mr Schlesinger and the State Department?all publicly excoriating- the weak-kneed showing of the Europeans in the face of Arab threats to cut off oil shipments?were unnecessary, at the least. The unfavour- able comparison of the good job that the Kennedy administration did in keeping its European allies informed over Cuba in 1962 with the Nixon Administration's handling of the October 25th alert has not 'been missed either. It was noticeable that when the Euro- pean community issued its joint statement on the Middle East on November 6th, which took a general anti-Israeli stand, there was no official American reaction., Privately, of course, the Administration' regarded it as. another instance of how hopelessly the Europeans are the cap- tives of their needs for oil. : These needs mean that however much tact and diplomacy the United States uses on its European allies, the latter will" always perceive the Middle East situation differently. American arguments that Russian involvement transforms the Middle East from a problem outside Nato's geographic purview into a general strategic issue , on which Nato must take a joint stand, will fall on deaf ears. Perhaps the. United States and its European allies can come to an agreement to disagree on the Middle East. The danger is that the present note of acrimony will spill over into other areas. Since .October 30th Nato representatives have' been sitting down with the representatives of the Warsaw !met in Vienna to negotiate. mutual troop reductions. In the eir. ?' ? . ,-... , I tion by American companiels ! required' for the embargojl.to , work. Oil executives say thin, hope .to comply with the et, , bargo by shipping more Ar4,1) 'oil to Europe and more Itheir oil Irdm countries whIclg 'are not participating in theJ embargo to the' U.S. market.. I i' Yesterday, U.S. -Inteligence sourcet said the Indonesian ! government might offer, the U.S. increased access to its 'rich oil reserves in return for mere financial assistance. . Any steps requiring addi- tional waivers /of anti-trust laws would meet with contro- versy on Capitol Hill, where Senate investigators already are looking into the operations of numerous multi-national corporations. -.--' - "The major oil companies have had tax credits and for. , eign depletion. allowances and anti-trust exemptions and - what we have Is higher oil prices and shortages," said one Capitol Hill source famil- i'iar with the industry. "No' they want a second bite at the, .81)Ple.",,,...?,..........,....:-.......:.,- ......!? cumstances it was confusing, to say ' the least, when Mr Schlesinger uttered'. a thinly veiled threat of a unilateral reduction in American troops in Europe., He has since retracted. Mr Schlesinger,1 even before the Middle East war, was extolling the idea of airlift capacity as, making the withdrawal of more American troops from Europe practicable. The success of the American airlift to Israel may have strengthened his view. It is, however, too early to determine whether the Americans are trying to force the pace. Then there is the problem of the new Atlantic charter that this "Year' ' of Europe" was to have produced. The grand design which Mr Henry , Kissinger outlined in April was that a general declaration of principles between the United States, Europe and ultimately,: ,Japan, encompassing both economics and defence, would be signed when President Nixon made his planned-t autumn trip to Europe. Since them; Watergate has intervened to preoccupy the President and put his future in doubt. And the Europeans, scared that the United States might somehow use its maintenance of troops in Europe to secure economic concessions, succeeded in September in getting the contemplated , charter divided into one concerned with economics with the European com- munity, and one concerned with defence with Nato, Even without the recent disagreement, over the Middle East among Nato Approved For Release 2001/08/07 : CIA-RDP77-0043214000100290001-5 " Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 allies, 'progress on the two charters has been slow. The discussion of the 'declaration on security ,centres at the mom* on a draft produced by the ? French early in October. As France 'does not participate in the military ' side of Nato; that draft not surprisingly' ? contaippittle on the questions of mutual troop ctits and financial burden sharing. The laqer is of great importance to the United Atates, and the Nixon Adminis- tration ',wants both of these items to. s figure prominently in the final declaration. 'Preparations for the declaration, on, '? NEW YORK TIMES 29 November 1973 After .77, ' iItrom Alppur, ? ? :By William $afire ? . BRUSSELS, Nov. 28?What's the tate .of the Atlantic alliance, now that*I the reality ot a Mideast war has called, lin the rhetorical bluffs? In American eyes, some of our allies '-whom American troops in Europe, still 300,000 strong, have been helping 'le protect for these past 23 years? out on us when the chips were :'down, cravenly caving in-to Arab oil ? $ pressure and obstructing , our efforts 1 . to resupply Israel at the crucial mo--? . pent; on top of that, our NATO part- hers had the gall to complain when `.'We IAA our own troops on alert to,'. ? ceunter a Soviet threat to send their:: troops into the Mideast. Tri European eyes, the superpower..., 'crazed Americans ? who have kept their troops in Europe to protect their ,1 own national interests, including -$28 ; , billion of investments which return : abillion to U.S: investors every year ?put their troops on a war alert with- out even notifying, much less consult- ing the countries in which those troops 1.? *ere stationed; on top of that, the new. :American Secretary of State added in-. suit suit to injury by berating allies that have suffered far more than Americans .? In war, and who are directly threatened.; (with the strangulation of their indus-5 tries. ?-Some of the ambassadOrs in the suitably temporary NATO headquarters r?.here in Brussels suspect the American 1 pique to be an attempt to "hot up the: situation so as to resolve it more quickly," a standard Kissinger ploy last exhibited in the Mideast; they 4 Vt6W the current barrage of criticism:, economic and other 'matters- are faring' little better. Mr Walter Stoessel, Assistant Secretary for European Affairs, and Mr Helmut Sonnenfeldt, still a close associate of Mr Kissinger at the National Security Council, joined. ' European representatives in Copenhagen, on Wednesday to continue talks. But, ..recent leaks of the various draft pro-' posals show that the United States and, ?Europe are still some way- from agree- tment. , Lastly, there is the curious problem 'of , how to weave Japan Ant? an ? rthcm 'the lngertlehnique of bringing grumbling to a head. , On that theory; Europeans -expect.; ,*Kissinger and.Schlesinger of State and, t Defense?Mr. Outside and Mr..IriSide?!..; ESSAY to. arrive at meetings here in two weeks with' a kid glove slipped over the ?mailed list, protesting; "You've got us 4 1 all wrong.' Our mild irritation. was only," ?.^ ,With a couple ,of *Countries, not ?the whole NATO alliance, and even that was exaggerated' in the ,press. As for the alert, you were right 'to be upset, t and we'll see to it,that you are .proP- 1erly notified in the future. Now about k;astatement of. principles. . ..." . Anticipatinglhe play, hovv will the :Etiropeans react? 'They* will play along, ?,labbriously helping to write a redefini, ? ;Con of the alliance, papering over ? sic differences in a way that wilt anti fbegin to peel until the President an4 l'nounces his next trip to Moscow. $ But what makes a `"European" out. ? ',-of a Frenchman, or Englishman or Ger-' man is fear of domination by non-i h 'Europeans. Fear of the Soviets created4 i.NATO; this unifying' fear has been placed by. fear Of the loss of Arab .oil !and* a nagging worry about Soviet-',;American collusion at Europe's expense.. r Those ? newer European fears were:' ,eXposed at the time of the Mideast", 'war,'and fact that has been exposed, lniust be dealt with differently from a ; 'fact that has long been tacitly under- ;stood. That is..why, after the Yom Kip-y ,pur war, NATO's alliance can never: be the same: With the glue gone, aM 'that was left was the habit, and now; ;even the habit is gone. What is to replace it? It. makes no. 'sense to denounce the nations of Eip;i ?'rope as 6owardS for their fear of the; ,Arabs now, when we embraced theq as herpes for their fear of the Soviets'.!hot so long ago. It makes not miich More sense to Oetend this has .been it lovers' quart. ,rel, 'reissuing Presidential .statementai iot, last May ?;like "The United , States'il ? I -"4 Atlantic charter. The --ijnited States remains determined to do this, even V it means ? a third declaration a principles. Among other things, the Nixon Administration is mindful of thi, fact that/ Japan, faced with an evett greater oil problem than Europ0 managed, to avoid publicly siding with, the Arabs. The real point of Mr Kis "singer's suggested Atlantic charter was to show that the United States.,, could strike agreements with its friend: as smoothly And as quickly as with itti enemies; that point has yet to be proved.?' ? IT not subordiostQ. the secnrity of ;the alliarice to SoViet-American AIM'S." More sense would be fl,aae by troducing the fear of substantial U.S., ;troop withdrawals.. Now that the So- viets are beginning--for the first time). in 'years?to exert pressure on West; ?turopean governments through local, Communist parties, American ence would be more effective if our ;presence Wpm not; taken for granted.: Most sense of all would be to recog- nize that the Nixon-Kissinger approach' :to *conducting world affairs?the bold ;.stroke,.the secret negotiation, the stun, 'ining, surprise?has served its useful; i.purpose; the time is coming f'or the trailblazing to be followed by trudging: if the world Were a great poolroorn,1 illithard Nixon; the hustler for peace,i ,.would be putting all the billiard, balls' :in 'a triangle, taking the woden frame. 'away,, placing his, cueball named Kis- singer in perfect position and then' $ breaking the Monolithic status quo; iwith a sharp, crack?leaving it to a., ;methodical successor to put the dis- persed power in the pockets. The trouble' with NATO is like the; :trouble with the U.S: Congress: It can-, 'nbt be dealt with decisively, the way a ;leadership of China can. A committee' ;:of democratic governments, each made': ;up of coalitions or bare majorities, is, a frustrating, unnerving, self-centerecU ? group to deal with; and the great, bold' strokes must be replaced by small, ',stroking, tickling and prodding. Is the Western. Alliance worth the', Infinite patience required to maintain' i: the light of the way the Euro-, pean members flunked the solidarityi test last month? ? The answer 'is, yes.. Pandering to; 'greed, suffering foolishness; and swal- lowing ingratitude is part of the price: ?Americans must' pay in order to lead! k?and occasionally to manipulate-_the: ? 'motely agglomeration of mainly freei people who make up the Atlantic Al, . ' ? ? ? Approved For Release 2001/08/07 : ciaRop77-00432R00d100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ME ECONOMIST NOVEMBEFi 24, 1973 ? Paying for f Oil prices are going to go through the roof; The world, which has tried to turn a blind eye to this so far, had better start some hard thinking The future price of oil is becoming at least as big a problem as supply. It is going to rise substantially; there is. not \much disagreement about that. There is disagreement only about how quickly the' rises will come.', .t is now generally recognised that a sellers' market will exist well into the 1980s. Alternative sources of energy,. including possible large new discoveries of oil outside the territories of t1?1 Organisation of Petroleum Exporting Countries; might then begin to provide some 'competition, but until they do it is difficult to see any economic cotinter-measure that could prevent Opec from pushing up prices to what it will. Those oilmen who feel that the rises will come at a gentler rate go on some political calculations. They point out that, as always in these situations, the most important country is Saudi Arabia since it alone, has *large proven reserves that would allow it to put up production dramati-: cally in short order. King Faisal, despite?the leadihg part he has taken in the present Arab oil embargoes, is judged to be a generally conservative man who is fundamentally friendly to the west, particularly America. It is argued that once the Israeli-Arab. war is settled he would be reluctant, to create the international monetary and'economic chaos that might follow from large, sudden jumps in the price' of oil. But most oilmen see the current running the other way,' even politically. Saudi Arabia will be subjected to pressure on prices not only from radical Arab countries like Iraq and Libya but also from other Opec members, such as Iran, eager to increase their revenues as much as possible. Iran, among others, will probably push for a rise in the posted price when Opec meets in Vienna on December 17th. In the present mood, with the embargoes still in force, even the Saudis might not. fight too hard against an increase, which would come on top of the 70 per cent on the posted price that Opec decreed in October. Opec members may not be the only parties wanting higher prices. There are also many Americans who think that the Opec countries should be granted substantial increases. The most forthright spokesman among them has been Mr James E. Akins, formerly President Nixon's energy adviser and now the American ambassador to Saudi Arabia. Long before the Israeli-Arab war began, Mr Akins was predicting a price of $10 per barrel by 1980. This is a long way up from even the present prices. For a barrel of a typical Arabian crude oil the posted price on the Persian Gulf is now $5.11. The market price is $3.65. Because of the telescoping of events lately there are some oilmen who maintain that $10 per barrel, either in terms of the market or the posted price, may be with us long before 1980, perhaps in just another year or two. Even those who see prices rising gently predict that the market_ pi 1,..e will go up by $1 a barrel during the next year, which, since Opec established a fixed, 40 per cent differential between the two prices in October, would mean $1.40 on the .posted price. The $1 a barrel rise would mean a 27 per cent increase on the market price and in itself would mean that the major importing cowritries would have to pay $10 billion more a year for the oil they buy from Opec. A market price of $10 per barrel would mean the world would pay $100 billion for its oil, $64 billion more than at present, assuming it bought the same amount as it did h 1972. To imt these figures in some kind of perspective, $100 billion is roughly equal to, four-fifths of Britain's at mai gross national product. The problem is how the ifidu trial west; m let fil the undeveloped ,eaet, le going to be obi i Lawe Growing with oil %growth in goo '60?'65 Europe 4.9 N.America 4.8 Japan 10.1 '65?'70 4.4 3.7 12.4. '70?'80 4.3 4.3 10.5 % growth in ? oil consumption 60?'65 '65?'70 '70?'80 14.0 10.0 6.0 33 4.9 4.7 22.4 17.5 9.4 % '60?'65 14.4 5.1 22.4 growth in oil imports '65?'70 '70-80 10.8 4,6, 5.4 114 17.5 9.4 E., this kind of increase in basic energy costs. The answer is that many countries will not, and growth will suffer apcord- ingly. The American propOnents of higher oil prices have taken their view for several reasons, not all of which they talk about publicly. They maintain that only steep increases will spur America and other industrialised countries to start a crash programme to develop alternative sources of energy, and such alternative sources' are needed, they argue, if the world is going to avoid an energy crisis in the 1980s or 1990s when oil production, even assuming perfect co-operation from the Arabs, may not be able to keep pace with world demand. They are also aware that price increases will hurt America's commercial com- petitors, Europe and Japan, much more than they will hurt America. Both Etirope and Japan are largely dependent on Middle East oil and will remain so into the foreseeable future with, of course, the major exception of Britain, which, thanks to the North Sea, hopes to become self- sufficient in the early 1980s. America, on the other hand, will be producing a large share of its oil domestically for many years. In addition, it possesses huge hydrocarbon reserves in coal and oil shale. The traditional close relation- ship between America and Saudi Arabia would be another advantage since Saudi Arabia would reap the lion's share of increased oil revenues and, because of its long-standing 'American banking ties, could be expected to funnel most , of these funds back to America. This would mean, in effect, that a large share of America's investment capital would be originating from Europe and Japan. This assumes, of course, that the Americans will be able to persuade the Saudis to take their oil out of the ground in exchange for funds that would have to be invested outside Saudi Arabia. There is much doubt over whether the Saudis will be so persuaded. If they are not, the oil would stay in the ground which, assuming a constantly rising demand for energy, would soon result in a big supply problem. \ For developing countries like India, further price increases will be a cruel check to growth. Many of these countries will simply have to do without, a possibility about which some Opec members are becoming increas- ingly sensitive. Discussions have been held with a number of developing countries but so far the oil-producing nations,,. twhile expressing sympathy, have not been able to bring t: ,themselves to grant price concessions. ' Rising prices during the next feW years will hurt Britain as much as other countries. On top of the extra ?500m a .year that the recent 70 per cent increase will cost Britain for its oil imports, a $1 per barrel rise would add a furthe0` ?292m to the bill. If the market price were to shoot up tci. $10 per barrel, the cost would jutrip to an annual Ll.ct billion over the present bill. In a fgw years, though, wherk North Sea oil starts flowing ashore lin quantity, every fresh i price increase will help Britain almost as much as it does the A.mb.s. Fora change the Britih Government will be faced" with a pleasant econornip dedision: Whether .to allow the country .to enjoy relatlVly eligart tint thefeby giving It 1114 aftvantago Over ,1 s industrial rivals, or 32 Approved For Release 2001/08/07 : CIA-RDp77-00432R000100290001-5 ? ' Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 .- whe_ther to slap large taxes and royalties on the oil to bring up the price to worldlevels I thereby fattening the Treasury considerably. i For the oil companies, there will be a certain irony in the situation. North Sea oil is expected to cost about $1 to $1.50 a barrel to produce and pipe aShore. If the companies THE ECONOMIST NOVEMBER 24, 1973 Should Ja an panic? were allowed to charge world price for the oil, with no re in taxes and royalties, some of them, including British Petroleum, would probably make larger profits than tItey ever did on the far greater quantities they have produced from the Middle East. However, thl very size of the wi?l fall makes that politically impossible , Japanese are saying that the Arabs' oil cutbacks could bringTheir country to its knees. An exaggeration, perhaps. But the Arabs know a vulnerable target wt7 they see one. And the credit squeeze has not been really tightened yet, , Last Friday the Japanese government decreed merely Tokyo grocers this week were selling out of toilet paper, sugar, washing-up liquid and even salt as quickly as they could restock their shelves. The run on lavatory paper has been going strong for about three weeks, which means for longer than serious talk of an energy crisis. It was traceable to seemingly unsensational reports of a worldwide scarcity of newsprint, which at the time had nothing to do with the Middle East. The Ministry Of International Trade and Industry has not stood idly by. ti helped to organise greatly increased deliveries of -toi et rolls to the worst affected areas, and sternly warn?retailers against profiteering. A country which could react in that way to a threatened domestic inconvenience must be expected to react to an energy crisis with high panic. Some people in Japan have done so. Mr Tanaka has bent his coOtry's foreign policy into a very low posture in a bid to climb into the favoured nation list of the Arabs. Officialdom is talking darkly (AI the economy plunging from 94- per cent real growth recently to a complete standstill by spring. Individual industrialists are projecting output losses of anything from 6-8 per cent to a stunning 55 per cent. The motor cir industry is talking of a production cutback of 17 per cent in 1974-75. How realistic is any of this? It must be puzzling to American and European readers that a shortfall in oil supplies which is expected to cause little more than nuisance in their own countries?perhaps, on one set of guesstimates, a trimming of + to 1 per cent of gnp growth projections for next year?is supposed to spell such disaster in Japan. The pessimists in Tokyo do have some grounds for worry. Imported oil (the bulk of it shipped from the Middle East by the oil majors) accounts for three-quarters of Japan's total energy needs, compared with roughly half of Britain's. Oil fuels 90 per cent of Japan's electricity genera- tion, against less than 30 per cent of Britain's and under 20 per cent of Germany's. (It was one of Japan's postwar success stories to have run down its coal industry to almost nothing, in order to winkle out labour for export industries.) Tokyo reckons that Japanese businessmen have long been frugal users of fuel, and so cannot begin to match their less efficient western counterparts in making painless savings on wastage. And, at the end of the line, Japan has only some 59 days of oil stocks, against an estimated 70 days in Britain. Another explanation for the cries of panic is an inter- departmental struggle in the Japanese government. The oil- shortage has come at a moment when inflation of whole- sale prices in Japan is running-at an annual 17 per cent, and when real gnp is still expanding at annual 94- per cent, despite a six-month-long credit squeeze. Miti, the depart- ment which will have to ration fuel, thinks that rationing will not work in an economy which is overheated. It there- fore announced that rationing was likely to be accom- panied by a new credit squeeze designed to cut Japan's rate of economic growth' to zero in the first quarter of 1974. Significantly, the finance ministry did not confirm this, Approved For Release 2001/08/07 Ivemidegammaisiatm? Hovv production will SO fit.'a Japanese inOostrial production ' ? ? .? 1972 -73t100 ,00 90 ? 100 + 110 % '120 "'17818 341 itrg ? ?17"--T? ?' .1 A 1973-14*,(68,42Thi2M9' :ELECTRICITY' I 0 1 CI re."7---r-re,;esi Revised forecast assurn''ng1054; ! ut in oil for industry from JanIst ? : CRUDE STEEL 1974-75' forecast 2.27 A?%41 , ? I03nri tons. m tau' 69m tone 9.013m tons 119 m tone 50m tone ! ? . assuming 10% cur,: !continuous ,CARS PULP 7 Zort.f4f92/ ANISM ? CEMENT / ; 1://WAVZ/YARM e ZeMiRiSIMI5 Iltege= IMPORTS OF. IRON ORE IMPORTS OF COKING COAL /114MAIMM , * Years ending March a 10 per cent cut in fuel consumption by twelve industries. ? It did say that this was only part of a projected six point programme for dealing with the oil emergency. Other features, all of which have yet to be spelled out in detail, will be (1) voluntary fuel savings by the general public, (2) compulsory rationing of some items, (3) selective price controls, (4) various efforts to augment the fuel supplies, and (5) some restrictive measures of demand management. The twelve industries whose fuel is cut back are steel, motor vehicles, shipbuilding, petrochemicals, electrical machinery, synthetic fibres, tyres, aluminium and other ' non-ferrous metal refining, cement, sheet glass, paper and ? pulp. All of them qualify by being within Miti's jurisdiction, by- being large consumers of energy, and also prosperous. But a large slice of industry escapes direct control; the -measures are likely to be imperfectly applied in the early stages; and public transport services, other than the air- lines, are not to be cut at all. So Miti expects that between now and the end of the year Japan's oil consumption wall in aggregate -be only 6 to 8 per cent below what it would: otherwise have been. It plainly regards this cut as in- . sufficient. It is likely to prove to be. And that probably is the main / danger. Little or no value should be attached to such guesses as that the energy crisis means that Japan's total exports will decline by 5 per cent and its imports by 11.8 , per cent in the year ahead?although these are the sorts of figures that have been churned out by Economic Planning Agency models. But if the government reacts to the harsh realities of the fuel supply situation only when it literally has no choice, then some sort of a real emergency could appear. In the short run Japan's imports of manufac- tures would no doubt remain at a high level. But imports of raw materials could be SOVerdY CM by a tightening clamp' on the output of key industries. If Japan is seriously hurt, the repercussions will be far and wide. They could be devastating for some. Even while : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 ? WASHINGTON POST ? 26 November 19 73 Europeans and Americans are congratulating themselves on the unexpected disappearance of some Japanese competition (as they soon may be), they should be acutely worried about a possible forced recession in? the world's largest and fastest growing market for raw materials, and less large but also fastest growing market for manufactures. ? WASHINGTON PO ST 3.7 November 1973 Dan Morgan Total Oil Ran ' [ i Not Ruled Out 1 i: Agence France-Presse STOCKHOLM, Nov. 254 };---A total shutdown of oil j !wells cannot be ruled out.; "if Western countries in- i sist that Israel stay in; occupied territories," the,t; secretary-general of th el Organization qf Arab Pe- troleum Exporting Conn- tries said in an interview j ? ? , here today. ' p ? Interviewed In Kuwait j by the newspaper ?Svenska .Dagbladet, Mi Ahmed At- ' liga said he did not thinkj It' would be necessary, ,however, ,to shut off the4, ? ,Western oil flow ,,com- pletely. , ? t "We wish to.cover West- ern Europe's needs for oil i ? :to that the Europeans.will 'meet. our need for techno7:4 logical, knowledge," he iadded. ? Controlling the Multinationals For several weeks, some of the ma- jor American oil companies have been in the odd situation of helping Saudi Arabia police its petroleum embargo against the United States. The U.S. companies, which control the bulk of Saudi oil installations, and also own or lease the tankers which carry the petroleum aboard, have pledged that not a single drop will reach American shores. They say they have no real choice except to play this game, since failure to do so would bring nationalization of their assets or a transfer of their holdings bo British, French or Italian competitors.- Yet there have been few better ex- amples of the ambiguous status of the world's multinational corporations? economic colossi which have sweeping impact on monetary stability, inflation rates, employment, balance of pay- ments and even the internal politics of nations around the globe. The ambiguities of multinational op- erations have inspired new efforts in the United States and in international organizations to learn more about, these powerful corporations. The United Nations, the Organization for Economic Cooperation and Develop- ment, the European Common Market Commission, the U.S. Tariff Commis- sion, the Senate Finance Committee and Sen. Frank Church's ,(D-Idaho) Senate Subcommittee on Multinational Corporations are among the groups which are studying the impact of the "MNCs" and what to do about them. Rep. Sam M. Gibbons (D-Fla.), a member of the House Ways and Means Committee, has said that the object of new controls should be to "harness the great potential of these giants and make them responsible to public policy rather than put them out of existence." He has suggested that a new interna- tional organization, a "General Agree- ment on Tax and Investment Policies" be established to harmonize tax, in- vestment and antitrust policies toward the multinationals. Consumer advocate Ralph Nader has called for public dis- closure of the holdings, taxes and other vital information of the big or- ganizations. U.S. labor groups are de- manding that tax laws be revised to equalize the advantages of domestic and international companies. Onhind those bti#14eNtbAi? id tin awareness that the aims of the U.S. government and the aims of U.S.-' owned multinationals are sometimes at odds. Senate staff investigators are now delving into the operations of U.S. Europe,subsidiaries in to see whether their various market-sharing arrange- ments inside the European Common Market pose a barrier against Ameri- can direct exports. They are also study- ing the extent to which U.S. foreign subsidiaries may have helped weaken the dollar abroad by transferring their funds in large quantities out of dollars , and into other currencies. ? The writer is on the national staff ? of The Washington Post. . Labor unions have zeroed in On the MNCs as a major source of domestic unemployment, charging that they pro?. vide jobs abroad which are needed' here. Corporate leaders reply that the number of domestic 'jobs generated by their organizations has been increasing too. The protectionist refrain is: Why should global businesses, especially those which are American in name only, receive waivers of anti-trust laws, extra-generous foreign depreciation al- lowances, tax deferrals and credits against American taxes for money paid to foreign governments? One answer is that the multination- als also benefit the United States, through expanded trade, and greater access to world markets and resources. For instance, the big U.S. oil compa- nies may be able to partially offset the Saudi embargo by diverting petroleum' from their worldwide resources to this , country. ? Also, an undetermined amount of the foreign earnings of mul- tinationals is returned home each year, , helping to offset the U.S.. trade deficit. But as the Satidi situation now shows, it is also questionable how "American" these giants really are. Mobil, International Telephone and Telegraph, Texaco, Caterpillar Tractor, ' Gillette, Colgate Palmolive and Na- tional Cash Register?all of these cor- porations now make half or close to ' half of their sales abroad, often through foreign subsidiaries. ' Obviously, these far-flung operations make controls difficult: Senate invest'. OW? an WWII into tho irgy gem corporations set up their own banks abroad?in the Bahamas,' Luxembourg and elsewhere?as deposit boxes for.: untaxed reserves. 011 companies which control drilling installations, tanker fleets and home refineries can shift . their profit from one operation to An- ! other to pay the least taxes. There is ; evidence now that the companies are ! . charging themselves high prices for their crude oil and taking a heavy: profit.. on 'transportation. But since their tankers are registered in "havens" such as Liberia, Panama, andl the Bahamas, the taxes are exceecluJ ingly low. , Many of the groups which are exam- ining multinationals are focusing on /the chaotic tax patterns which govern the firms. Often, the multinationals/ pay more to foreign countries than! they pay to the U.S. The Senate F1-' nance Committee reported in February: ' that U.S.-owned corporations abroad" paid $5.7-billion to host governments' on earnings of $11-billion in. 1970. But.: the U.S., after allowing various credits,'- collected only $640-million from the. . same corporations?or about six per, cent of taxable income compared with': the 48 per cent statutory corporate in-1 come tax to which domestic firms are - , subject. According to a report submitted to. the House by Rep. Charles A. Vaniki ? (D-Ohio), ITT paid Federal taxes In 1972 at a rate of one per cent. Three of the companies involved in Saudi Ara- bia, Mobil, Texaco, and Standard Oi.0 of California, paid Federal taxes at rates of 2.9, 2.7 and 5.8 per cent, re-,, spectively, he claimed. All of this is legal. U.S. law lets in- ternational corporations defer Federal:, income taxes on their foreign earnings until they are returned home?which i sometimes is never. Still, the tax issue I Is an emotional one because the differ- ence between the multinationals' tax liability and their enormous wealth ! and power is so great. (The book value of the foreign investments of U.S.- owned corporations is around $90 bit.: lion.) Yet national governments, including1 the U.S., have only begun to examine, the impact of the giant supranational! structures on their own policies and the outlook for extensive new controls; seems bleak. The global thinking of. the multinational executives is run-i niog tar And 0 tito lifirr6W8l2 of the men who govern the world's na-, tion states. ? . . 34 Approved For Release 2001/08/07,: CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASHINGTON STAR 105 November 1973 CROSBY S. NOYES Blu ge le is becoming clear that we gre in fora terrible row with Israel. And if the rea-. sorif for the row are not clearly understood.from the it Louie, ....abst. terrible damage here in the United States. The reasons are quite evident to all conceroed. After four wars in the space of 25 years, it is absolutely imperative that a peace set- tlement be reached in the Middle East. It is also inevi- table that any peace settle- ment that stands a chance of being accepted by the Arab nations will be ex- ?treincly disagreeable to a large number of Israelis, backed emotionally and po- litically by a large number of American Jews. No peace settlement, of course, precludes the possi- bility of still another round of fighting between Israel and her Arab neighbors. ? What it can do and must do is make another round much more difficult for both sides. Presumably, if a set- tlement can be worked out, ,it will involve solid great- 'Tower guarantees of the new status quo. ? In order to reach a settle- ment, the role of the United ' States will be both crucial 1.and unpleasant. The Israe- LOS ANGELES TIMES! 21 Novembe 913 g Israel into Concessio lis, by and large, under- stand very well that a set- tlement has to be reached in order to avoid the perpetua- tion of the pattern that has existed since the foundation of the state. But many of them may well be unwilling to pay the price that will be required to bring an agree- ment about. That price, realistical- ly, will be something very close to a total Israeli with- drawal from Arab-occupied ' territory. It will quite cer- tainly include the whole of the Sinai Peninsula in re- turn for an Egyptian com- mitment to demilitarize the area. It will probably in- volve the presence of a United Nations force at such key points as the Suez Canal and Sharm el Sheikh, presently occupied by Is- raeli troops. If an agreement , can be, reached with the Egyptians ?where the territorial is- sues are easier to deal with ? the other pieces of a set- tlement are likely to fall into line. Jordan's King Hussein is openly eager to reach an accommodation with Israel that will restore at least his nominal sover- eignty on the West Bank of the Jordan River ? quite possible as a semi-autono- . mous Palestinian state. The most difficult problem with Jordan will be the status of East Jerusalem. And it is hard to see any sgiution ? except in terms of some form of internationalization of the old Arab city. It is impossible to forsee the outlines of a settlement between Israel and Syria. Given the intractibility of, the government in Damas- cus, it is conceivable that no agreement will be reached , and that Israel will continue to occupy parts of the stra- tegic Golan Heights. By it- , self, however, Syria would present no major military or political problem so far as Israel is concerned. The point, however, is that the concessions from Israel that will be required to reach any kind of settle- ment with any of the Arab nations? are likely to be enormously unpopular with Israeli voters. Which is why no real progress at a peace conference can be expected until after the elections in Israel in December. And it is also why maximum pres- sure from the United States will be necessary to get any concessions at all. There are several hopeful factors in the equation. The? latest round of fighting has shaken Israeli faith in the proposition that national security depends on holding large amounts of Arab terri- tory. It has also ? thanks to , the oil war ? left Israel more isolated 'and more dependent on American support than ever and therefore, at least theoreti- cally More susceptible to American diplomatic pres- sure. But surely the most hope- ful factor is the realization of the Israeli government itself that the chance for a real peace canaot be al- lowed to slip away this time. To the extent that concessions to the Arabs are unpopular, it will be a ? positive benefit for the gov- ernment in Jerusalem to maintain that they were . made under 'duress from Washington a claim that, has already been heard in connection with the cease- fire, much criticized by Is- ' raeli hawks. Altogether, it is a tricky ? business which will demand careful management and a good deal of understanding on the part of the public. The unfortunate probability is that the Israelis will ac- cuse the United States of selling them down the river, whether they believe it or not, and there will probably be plenty of Americans who will agree with them. he' Ara' bs' Oil iScineeze oii Japan No major industrialized nation is more ?vulnera- ?ble than Japan to the political blackmail that is the aim of the Arab oil embargo. Petroleum supplies 70% of Japan's primary energy, and 85% of all the crude oil Japan imports comes from the Middle East?some from non-Arab Iran, but most' from the Arab states that have cut their production in an effort to strike indirectly ,at Israel. This heavy dependence has given the Arabs the chance to squeeze Japan with particular harshness, and this they are doing. a The Arabs are pow demanding that Japan' sever Its diplomatic relations with Israel, and it would not he surprising if Premier Kakuei Tenaka's govern- :b.-lent was forced to agree. Japan's official policy itaward the Arab-Israel dispute has been one of strict neutrality--,nbut the Arabs insist now on a visi- ble tilt to their side. Under intense pressure from , powerful business and industrial groups, which ;Want to keep the oil flow to Japan as high as possi- ble, Tanaka may have to yield to the Arabs' mitortion. none of which?exCept tile Netherlands, with its,1 ? strong bonds of sentiment to Israel?is being pun- ished as brutally by the Arab states or having as much demanded. It is already clear that in the short term the oil blackmail is going to be paid, though whether al Middle East settlement on Arab terms will be the ? result is quite another matter. But it is also clearl that expedient answers are seldom the b6t an- , swers, whether in terms of durability or national) interests. - , North Ameeica, Western Europe and Japari together account for 60% of the world's industria1! power, and they simply cannot affoe4 to have their ; future economic growth held hostage to Arab oilA, supplies or Arab political demands. ? At some point the decisions no one has Wanted to ? make will have to be considered by the indus-1 trialized nations, whether for an oil-sharing ar- rangement in the face of shortages, or possibly1 even for a concerted countevernbargo against the! Arab states. There has been fear in Western Eu-i ' The irony is that Japan has no special influence rope and Japan about even talking about such a:C=1 on Or ties with the Israelis. Rather plaintively, the tions, but the time may soon be coming when na-.! Japanese note that their Middle East policy is the tional economic interests must override those' *tame as that Qf the_Common_Maiyagiolupthim Approved For Keiease zuu r.,--mirg017r60432R000100290001-5 Approved For Release 2001/08/07-: CIA-RDP77-00432R000100290001-5 NEW YORK TIMES 21 November 1973 Oil: Alarms Growing in Europe and U.S; C Ra 'Worries Abbot a Possible 4974 Recession By CLYDE H. FARNSWORTH Special to The New York Trines PARIS, Nov. 20?The cut- back ofl,Arab oil supplies, now running 'into its second month,' is affec4ing the economies of European nations, and fears that it could trigger a recession next year are sending the stock markets of the Continent down about as sharply as in Wall . Street. French, British, West; : German, Italian and Dutch share averages are all down 15 to 20 per cent over the .? last month. The effects of the oil cutback are varied, depending on the country and the industry, but t most economists are agreed ;that the slowing already in ? progress in most countries will be sharply accelerated unless the oil flow is resumed quickly: "I am operating under the t assumption that the Arabs are going to play it tough," said Ken Mathysen-Gerst, president of Capital International, a Geneva-based financial house, "and that the impact on West- ern Europe, Japan, and, to a lesser extent, the United States, , will be severe." L He sees Europe moving into Its worst recession since Wor-lr''' ' War. II. 'Predictions Changed Franz-Josef Trouvain, chief ; economist for the Deutsche Bank of West Germany, said the energy crisis had prompted the German Bank to recalculate :growth projections for the Ger- man economy, next year. "We originally thought there would be a swing down- , ,ward from 6 to 7 per cent this year to 3 per cent in 1974," he reported. "Now we see only 11/2 to 2 per cent." He sees the main effects so Jar manifested in a reluctance to buy new cars and says this will have repercussions on the textile, steel and rubber indus- tries, which supply auto mak- ers, as well as the auto makers themselves. The Ford Motor Company's Cologne subsidiary has already announced a 5 per cent production cutback. Five- European countries ? West Germany, the Nether- lands, Belgium, Luxembourg and Denmark ? have banned Sun- ..,_tiasy driving, and this is not only cutting into demand for new cars but also is affecting spending in the small country hotels and restaurants that live on weekend trade front people in the big cities. ? ? _ France Held Insulated France has' hardly ? been' touched, and economists here, such as Jean Denise of the Banque de Paris et des Pays CHRISTIAN SCIENCE MONITOR 16 NOVEMBER 1973 deast crisis strengthens Bas, think the country, which has suffered no oil cutbacks because it as considered a friend of the Arabs, is pretty well insulated from any immediate troubles. "But obviously," Mr. Denise .says, "Frenchmen cannot drive all over the place if everyone else in Europe is staying home." Jean-Marie Chevalier, a petro- leum economist and a professor at the University of Grenoble, believes that if the oil crisis continues France will start feel- ing the effects on her industry by next March. In Britain, which is cutting oil deliveries 10 per cent to protect essential industries and Services, the effects so far also have been light. ? But some industries, for in- stance bottle manufacturers, are afraid they will have to cut back. The Glass Manufac- turers Federation estimates that up to 85 per cent of the glass- container industry' uses oil for firing its furnaces. The indus- try believes output may have to be reduced 20 per cent. Shipping Feels Pinch ' ; Merchant shipping is feeling the effects of the squeeze be- cause of a shortage of supplies of bunkering oil. "Unless a solu- tion is found soon to secure ?the supply of bunker oil to the world's merchant fleet, the situ- ation in world trade and econo- my will be quite intolerable," said A. Fredrik Klaveness, former chairman of the A. S. French voice in Europe By Takashi Oka ? ? Staff correspondent of The Christian Science Monitor Paris American actions during the Middle ,East crisis have put France in the driver's seat in intra-European ef- 'forts to hammer out a joint stand on . transatlantic relations, diplomatic ? sources here believe. Despite efforts in all major Eu- ropean capitals to play down reports , of rifts with Washington,- relations between the United States and its European allies have a long way to go before they recover from the shock of last month's nuclear alert and Eu- ? rope's exclusion from the Middle East peacemaking process. Assistant Secretary of State Joseph J. Sisco, in an exhausting rush trip through Western Europe this week, has made a valiant attempt to explain 'ho'w Secretary of State Henry Ai ulnger nitilliat@ll botWOtiti moo sand Israel and persuaded them to sign' this week's agreement implementing .the Oct. 22 and 23 cease-fire. But the sourness has not gone out of transat- lantic relations. - France, always most suspicious of American motives and actions among the nine members of the European: Economic Community, can now say? "I told you so" to its European partners. The French thesis, since the. days of Gen. Charles de Gaulle, has: , been that the two superpowers, Mos-4 cow and Washington, will always look out for their own interests ahead of' those of their allies. To this thesis has been added a neW; twist since President Nixon steppe& up the pace of East-West detente' through his visits to Moscow and Peking. This is that the United States; gives far more weight to detente: and or confrontation with Moscow than protecting the interests of its allies. French diplomacy, headed by brit.; liant, incisive, coolly calculating For,' eign Minister Michel Joberti has been Stahl@ in overgy ektiltAi, ing as far as possible from pushing a particular thesis or policy as "French." The effort, rather, is to, 136 I ? "-Norske Shell Oil Company of ,Oslo. The petrochemical industry of West Germany and the Neth- erla.nds, which use oil as a base product, is also suffering from the shortage. Even if full oil shipments are resumed, by the end of ' the year, most economists beH lieve there will be many tem.' ?porary shortages and disloca- tions?and of course higher fuel prices?all of which will eat into! company profits. The' oil-consuming nations' have been considering jointly what they can do to alleviate the fuel crisis. But the situa-. tion?will have to become much more critical before they will, adopt a common program; it is felt. 4 At a meeting of the oil corns mittee of the Organization for Economic Cooperation and De- velopment in Paris, inforniants said that international oil com- panies, working closely with governments, are easing some of the shortages by shipping more non-Arab oil than usual. Most of the ,consumer coun- tries are also acting to curb demand. But even with all these measures, the picture is pretty bleak. With the biggest econo- my in Europe, West Germany faces prospects next month pf getting 25 per cent less 'oil than it expected, and Britain some 15 to 2Q per cent less. hammer' out a "European" .:r;011eYr1 that can be presented to WaSiungtorisi as a joint stand of the Nine. k Whereas in the past, the British, the ; Dutch, the West Germans, and others ,? sought to soften French insistence: that Europe should assert its dis- tinctness from the United States while' remaining in military alliance with it, ' now, diplomats report, more and' more capitals are tending to echo the, French view. . Whereas before the Middle East 'crisis, President Pompidou was cast- ing about for some plausible reason: ' to promote more frequent summit; meetings among the EC Nine, the shock of October's event has now ?, made such a summit meeting seem. natural and even overdue. It will take place in Copenhagen, Dec. 14 and 15, hard on the heels of a .North Atlantic Treaty Organization meeting Dec. 10 and 11 in Brussels at 'which the so-called "new Atlantic. Charter" was to be declared. 1 A. companion document being Worked out between the EC and the United States on the economic aspect. kat tittitlatlantiO Math:We has gone. Attrough alodding. The iLd ,poses American amendments to a, ?European draft, designed to make the .document more specific. President Nixon's withdrawal of Approved For Release 2001/08/07 : CIA-RDP,77-00432R000100290001-5 c Approved For Release 2001/08/07 :.CIA-RDP77-00432R000100290001-5 'trade bill that would have given him .needed authority to negotiate tariff' cuts with the Europeans and othersi has strengthened the French ar-i gument that the United States is! ,primaribl interested in relations with, the Soviet Union. ' The reason for the withdrawal, it is 'said, is that the White House does not; want tO rtisk defeat of a provision ,giving mbst-favored-nation treatment , stto Moscow. The sourer France's European partners feel about the way Wash.ing-,, ton seem @ to be treating them, some diplomat feel, the readier they may be to fall1n with French arguments that Europe needs a political secre-' tariat, distinct from EC headquarters ? tin Brussels, to coordinate its own. ?political decisionmaking. The French have made no great' .secret of their view that this secretar- iat should be in Paris. , 4 WAS HINGT ON STAR 28 November 1973 U.S. Won't Get a Look At SAM 6 Unne4Pms5Trucmational U.S. military officials had- hoped to get a look at the guidance system of the So- viet SAM6 missile as a divi- dend of the latest Arab-Is- raeli war but the Israelis! failed to capture any of;! them intact. A Pentagon source said the Egyptians did not aban- don as much useful gear On' the battlefield as in the 1967 war when they were forced to make a nasty retreat. American military offi- cials had been openly hop- ing the Israelis would cap- ture a SAM6 intact so that U.S. technicians could ex- amine its radar guidance system and develop a sys- tem to jam the control elec- tronics. But this time the Egyp- tians took the vans contain- ing the guidance system with them as they with- drew. The SAM6 was generally 'considered the greatest threat to Israeli aircraft operating over the Suez area because it was much ? more difficult to jam than the SAM2 missiles Amen- 'can planes faced over North ;Vietnam. About 17 percent of the U.S. planes lost over Viet- nam were downed by Sovi- et-built missiles. U.S. sources said the SAM6 was a much more effective weapon because it was de- signed to hit low-flying air-, craft. !CHRISTIAN SCIENCE MONITOR ' 28 NOVEMBER 1973 - it S groub s By Don Sonar , ? Special to ' The Christian Science Monitor ? 9 ttawa orried about oil shortages of its o this winter, Canada is being forOed to restrict the flow of crude oil toan energy-thirsty America. And since Canada .is the main source of imported oil, for the U.S., thai could hurt in America's cold No th and Midwest. hile the forces of economic nation- al' im play -a part in this "Canada first" attitude, itls an exaggeration to say! most Canadians enjoy their new role as "blue-eyed Arabs." The simple fact is that eastern Canada could be short up to 200,000 barrels of oil a day this winter ? an , intolerable situation in a country su,p osedly self-sufficient in' energy. res?urces. ? Canada produces about 2, million barels of oil daily, most of it in the, foothills province of, Alberta, and it ships nearly half that production to the 'United States. Elastern Canada, meanwhile, must depend .upon offshore crude, mainly froth Venezuela and the Middle East, . and, now faces shortages of up to 20 pereent as a direct result of the Arab ? oil cutbacks. Pipeline extension blocked This irony of shortages amid export ' surpluses is a grave embarrassment ? to the minority Liberal government of Prime Minister Pierre Elliott ? Trudeau, who must cater to the ?. whims of two opposition parties to ? remain in office. For a decade, the government re- jected proposals for the extension of western Canadian pipeline facilities to Montreal as a guarantee of eastern market supplies in the event of oil supply interruptions abroad. ? 4 ? :Its reasoning was twofold. First, domestic crude was more expensive, than the imported product in the days. before the Arab boycott. Second,? here was hope, now a fading one, that oil would be found on the Atlantic', coast, close;to the eastern market. The failure to obtain a Montreal ? pipeline prompted Alberta to fight its way into the U.S. market as a means of developing its oil fields. This was a ? difficult chore in the days of tight American oil import restrictions. By this fall, however, Car.'sda had become the chief source of imported ?? U.S. oil, winning about percent of the American maket. ,But since March, mounting concern ' about domestic oil shortages has 'prompted Canada to restrain the flow of crude and refined products to the U.S. Nevertheless, September deny- eries of crude set a record when they reached 1.3 million barrels. . ? U.S. treads carefully ; In December, the tightening Cana dian supply situation will force a cutback to slightly less than 1 million. barrels daily. On the surface, the U.S. has been' sympathetic toward Canada's supply dilemma. Underneath, it appears as though the Nixon administration is trying to tread carefully with the ' Trudeau government In the hope of gaining long-term access to future' 'production from the Alberta oil sands ; and perhaps natural gas from the .;Canadian Arctic.. ? Monday night; The Canadian oil 'supply crisis, which is considerably 'milder than the U.S. one, produced mild voluntary energy-saving advice ?'from the Trudeau government, with the prospect of some mandatory allo- cation of oil at the wholesale level in , the new year.. It is obvious to most Canadians that the only way they can avoid domestic oil ratiening in future is to shift oil? from the U.S. Midwest to Monysal.,.? . The Trudeau government is corn- , mitted to build the badly needed' pipeline extension to Montreal by the 'end of 1975, although it. could be held up by U.S. regulatory bodies such as the Federal Power Commission since the'. odsting pipeline from the. West ? traverses U.S. territory and it would have to be upgraded.. Approved For Release 2001/08/07 :'CIA-IWP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 WASHINGTON POST I 211November 1973 7oseph Alsop Blackmail Thfeatens U.S., Indppendence. , ? t The elergY 'crisis is in danger of! 'becoming the other horror story of the'; second Nixon administration. The Arab . . oil embargo On this country is proving, , all too successful. Its enforcement. is; even being policed by the big Ameri-', can-owned oil companies. ' ? . Available supplies are therefore; close,. to 20, per cent .short of' total; demand for oil fuels before thei embargo. As any fool can see, this kind of supply-demand relationship ' must soon cause acute shortages. Newl England will pretty certainly be 'freez,ot ,ing before Christmas. Soon thereafter,' the whole country will feel ,the :full: effects of the biggest, most painful single problem ever met with by thel U.S. in peacetime. Yet this enormous problem finds the:: U.S. government divided and irreso-? lute, and the Congress rather morei footling and feeble than the executive branch. the administration, the 'chief immediate bone of contention; is whether to have some sort of ral tioning, , , ? As is well known, both Secretary of, the Treasury George Shultz and the, ? President's Council of Economic Ad-,4 visors are strongly opposed to ration- ing. They want more ,allocation, ' plUs higher prices, to serve instead. :Secre2', tary of the Interior Rogers Morton,! meanwhile, is strong for rationing., But the real swamp of indecision is, among the President's energy special', ists, headed 'by Gov. John Love. 3 . Governor Love is a handsome, ami:' able fellow who has notorious difficul- ty making up his mind about anything. It it pretty obvious the White House' already hankers to replace this impos- sible 'substitute for the energy-czar who is now so badly needed. As to Governor: Love's staff, it is enough to say that, his Chief staff member is the author of President Nixon's energy message, of last January, Charles DiBona. A tough, forthright January message, .could have made the President the hero! of the -energy crisis, in contrast to a? -"do-nothing'. Congress." Instead, the: message was watered down to a dampk: squib by DiBona and John Ehrlichman.: The latter also chose both DiBona and GoV,ernor Love to be put in charge of 'the energy problem. Even in the Water-,: :gate horror,. Richard M. Nixon has ' 'tardy beeii kVorst-tierired2 71 The result, In fact, is that the politi- cally 'beleaguered Pr?dent has been left 111.the wrong-posture to deal with this appalling crisis athil witil.no real: instrument for the purpose, and with.: conflicts of view among the highest potimmakers.. ? .' . 1: Furthermore, the argument about; rationing may dominate the energy scene at the' moment, but is far away 'from the central point of the energy crisis. The central point is both grim, and simple. Whether or not we have irationed oil fuels, we have got to begin1 'paying lunch, much higher prices for energylin all fornis. ? !. The only alternative to much highe,r,.,:t ?energy prices was suggested at a recent f meeting of state oficials from Colorado, I,Wyothing, and the other Western states 'which contain the largest U.S. reserves. ;of easily mined coal as well as oil shalol; These states now have to face- bein14 tliterally. excavated. They:do, not likd u,the prospect. 'Hence' one official, 'cur; ,rently running for the Wyoming g?over-, ?f ,norship but to be kept nameless, act* .1111y made the all but incredible statet," "Maybe the time has corne for thei to destroy Israel; in order'to stifd":1 'guard American Oil Supplies from thel.4 tArah countries."... ? A The 'monstrous. ithecdOte *series ?tii idramatize the real' American stake in'i ithe energy Crisis. The stake ,is fnoth- ing more nor less 'than the political 7and strategic independence of she ? ;United States. . To preserve American independ", ience, surely, , any decent AmeriCan'. ought to' actept gasoline at a clollhe ;or 'Oren $1,25 a gallon?which is the :current gas. price in West Germany4 IVItieh higher energy. prices are ,tini avoidable, 'in turn, in order to make; profitable to e*nloit the huge alter-1 *native energy-sources the U.S. luckily; ;possesses. The Main ones are oil shalel and coal, of ,course; and if these areT thot exploited tO the utmost, we cannot': ;be independent.. ? For ,,this purpose, the needed inVest",`,3 thients may easily run above' $100 'lion in the next 10 years. Obviouslyii r? ,moreover, investments on ? this scale; ;are never going to be made, without' :Some sort of guarantee of long-term price stability' at the new thigh level' There will never be a huge Anierican! Oil-shale industry, for instance, with- out solid protection by import taxes':, :;or In other ways. The Arab states'4; have to be prevented from destroying:. this novel competition overnight, -by'.; arbitrarily cutting their ow,n oil pricer; 'for a while. ..; Meanwhile, however, With national; Independence' quite clearly at stake,I no one seems to worry about. anything but the Wategete horror. 'And this. isi even true :of the President! . ? ,urtx, !to! ,tyWeles Times .38 WASHINGTON STAR 28 November 1973 'Israelis Bah king. in, , . .(Gratitude., ,?? As a gesture of apprecia- tion for American assist- ' ance, Israel is increasing its _foreign currency reserves l'in the United *States, at the 'expense of Europe. ' According to an Israeli ,source, the amount of mon- ey being shifted is relative- ' ly insignificant ? " a cou- pie of hundred million dol- Jars." But, the source re- 'marked, "America was so helpful to us . . . It would be proper that we invest as much as we Can'! in the United States. : At the same time, Israeli :sources emphasized that Israel was not trying to pun- ,ish Europe for: its tilt to- ward the Arab position dur- 'ing and since the latest Mideast war: The with- drawal ."of a couple of 'hundreds.of millions from so many. countries . . . the effect is minimal," one offi- cial ' In fact, he noted, Israel ;could feel the pinch because 'the funds, put in short-term -liquid accounts at American (banks, are expected to draw, ;a lower interest rate than if ;they were left in European banks. ' The transfer of the funds, :which are held in the cur- :rency of the country where :they are on deposit and used for various purposes, !is being accomplished in ? two ways. Some funds are being exchanged from European 'currencies into dollars and transferred to the United States. Another Method is to al- low dollars collected here ? through the United Jewish' :Appeal, for example ? to remain in the United States, ,rather than to shift them! overseas for purchases other countries. Reserves ,held in other countries then. dimish as they are used for such purchases.?THOMASi DIMOND 1 t .? Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-ROP77-00432R000100290001-5 NEW YORK TIMES 23 November 1973 Kissinger's 'F'irst Ten Weeks By James Reston WASIOGTON, Nov. 22?In the ten , weeks since he became the 56th Secre- tary of State of the United States, ? Henry Kissinger has covered more miles, visited more countries, answered more questions, and probably con- sumed esoie food and proposed more toasts than any of his predecessors ; since John Foster Dulles. Already in these ten weeks, he has gone through the Middle East war,. a scary worldwide military alert against ' the Seviets, innumerable sessions with other foreign ministers at the United Natiens, and encliees meetings with members of Congress, his new col? leagues in the State Department, and , his skeptical watchdogs of the press. It has been an impressive perform- ance, but it's hell on the nerves, the mind and the waistline, and, unless somebody invents the 48-hour-day, you ' have to wonder how long he can sus- tain this punishing pace. Henry Kissinger didn't get where ?he is today because he was a great personality, or traveler, or insider, but , precisely because he Was an outsider, 180.111M.O. WASHINGTON , who had time to think and was in touch with other loners who were re- flecting on the basic purposes and ? vital interests of the nation. Now he is caught up in 'a tangle of problems which require more time than he has and also require, as he. says, at least "a modicum of confi-; dence between the public and the responsible officials." And he is ap- pealing to press and public to give him a chance to work things out. It is a fair enough request but it Is not going to be easy, for he has ? been saying some things lately that require more than a "modicum of con- fidence." For example he said at his? last press conference that United States policy in the Middle East would not. be influenced by the Arab oil embargo, ? but the fact is that American policy is clearly being influenced at every corner gas station, and Mr. Kissinger is now leaning heavily on the Israelis in private to hurry up the negotia- tions and make substantial conces- sions to the Arabs to lift the embargo and get a Mideast settlement. ? Also Mr. Kissinger has been w'arnes? ing the Arab states publicly but gently that the United States would have to ,consider "countermeasures" if the Arabs continue their economic war- !fare. But again the fact is that Wash-'. ington has few countermeasures and cannot mount an effective counter- embargo against the Arab states with- out the cooperation of the other indus- trial nations, who won't go along. Meanwhile, Mr. Kissinger is refusing to explain, as he promised to do, what the Soviet Union threatened during ' the Middle East crisis, which justified, putting U.S. forces all over the world on "alert." Did Mr. Brezhnev say he, "might" or that he "would" send Soviet airborne troops into the Middle' East? Did Mr. Brezhnev actually sendl atomic weapons into Egypt? Mr. Kis- singer says he has no "confirmed" evidence that this was the case. He 3, is merely asking for public trust. 4 Nevertheless, though Mr. Kissinger is appealing for "confidence" in an', Administration that has little oonfi..-; deuce, he has earned in his i'eking and Moscow missions a right to try.7, ,to work out an accommodation in thest 'Middle East. For, to a large extent, the easing of the fuel shortage in the 'United States depends on the nego- tiations for a peace settlement in the Middle East, and this in turn depends probably more than it should on the integrity, judgment and negotiating ' skill of Secretary Kissinger. You can cut your speed to fifty miles an hour and knock hack your heat to 68 degrees at home?what a sacrifice! --but unless Kissinger gets the Arab- 'Israeli talks going in a hurry and persuades both sides that an accom-; modation is better than more militarye . wars and an expanding economic war, the non-Communist industrial nations ' will quickly be up against an eco- nomic recession. Maybe this is what Moscow wants. Having failed to keep up with the. computer revolution in the advanced. industrial nations, the Soviets could.? be using their .political influence in the Middle East to cut down produc- tion in the West and in Japan. Buti ? we won't know that until the negoti- ations between the Arabs and the Israelis get going, and here Mr. Kis- singer's role is both critical and awk- ward. "If one looks at history," he told: the press the other day, "and sees how often it has happened that wars, have been produced by the rivalries of client states, without a full con- , sideration of the worldwide issues . t the overriding. need of finding a tion. to the problem of worldwide nu- clear war becomes overwhelming. . ? This is the central question of our ?J, period, and it is a problem that will ? have to be solved either by this group c of officials or by their successors. But ? it cannot be avoided." It has been a long time since any Secretary of State has dealt in public 3 with so many dangerous and ambigu- ous questions under such difficult cir- cumstances at. home and abroad, and if the energy crisis is to be eased this r winter or the Middle East is to reach some kind of understanding, Mr. Kis-,' singer singer is probably the main hope. But .1 he needs some public support and he ; needs some rest. - WASHINTON POST 9 November 1973 ? ? ;Stephell, S. Roseideld1Ki 'Realities Of Parity And' Detente 4 The Soviet 'Union's sponsorship of ' the fourth Arab-Israeli war has stire,ed. a broad ree;ew of the basic premises; arel nnasibilitles.e "detente." Perhaps, :it would be mope apt to call it a first. dose look. The Scvict iutrventionJu ,Czechosiovekia in IHR provides a ful 'benchmark, if The inisarvention in Pranee had a.m. -tionale.4o keep the Soviet bloc ecorre, unravelling-,-no. less comprehensible,/ for the offensiveness of the palleyv. used to support it. The lootivation ? fOr,./ .Soviet policy in the Mideast was, hoeee ever, strictly imperialistic: throwiro4., Soviet weight around in a place of.,no,? idgnificance for .homebloc security .ere, Welfare. ? ? ? . In Czechoslovakia, 'the Russians, could safely .deploy their troops as though for a containable local opera-. tioh, without worrying of a Wester,? :military reponse. In Egypt. and Sy1i4, the Russians performed a far more. ai,ne bilious military operation involviq:g formidable aerial resupply. effort ...deployment of an'impressive fIet, alt of this supported by the great stride* 'forces they have Put into place .siria 1968. - Then, the Czech Intervention ,tpOlp, Place at a pre-detente time when rela-: ,tively few .Americans were.disposed!td,' expect a Moderate Soviet policy. .contrast, the latest Mideast war brZike5 out at a time when, most Amerieaiii" ;probably felt that the. proclaimed kfie Tesses of detente had markedly :duced the chances for en adventuriWee' 'Soviet policy, especially for an `adVeri:1 turistic policy discomfitting the UniTe'd' . States. . . _nest The fundamental liberal. premtie about- Soviet policy has been that the! :Soviet Union would begin .to ,"normally" and. responsibly on lite) :World stage, once it had "achioVett lough strategic .and political %vita 'the United States and once that ach1eVe4 Ithent had' been' recognized by .Washirfe ;tem. ? ? -??- . No one can deny that in 1973 MOS:? cow has attained such parity. Thereli ,the evidence of two summits that the. United States accepts it as a fact. But; 'the Soviet -.Union did not.' !' act; ,"normally' and responsibly in this lat.e est war. In particular, it knew?every one knew?that the Nixon. administrael tion was cranking up a major diploe matic initiative for a settlement, but,it: did not allow that initiative to run eoprse or even to get off the ground.,..es ) To be sure, those who, never apj pepted this liberal premise in the fir4; Place can and do fairly, contend neon that it failed in a. crucial'. test. Thesis,. whose . prime? foreign-polity, interest,:iik to assure a steady how ot *tits a. tV 'support for Mad tend to accept Contention, however much it embirje, 'asses their other. views on world- pFg".1 peeta and domestic- spending ,epejesie Approved For Release 2001/08/07 : CIA-RW77-00432R000100290001-5 Approved For Release 2001/08/07 : CIA-RDP77-00432R000100290001-5 lies. Those Who had been binitingiiity7 way for arguments supporting the 'ith ministration's defense proposals .h'ive got them in spades. To grant that detente has been cript pled or discredited, however, is a jag:3 ment laden with so many harsh WORT, cations. for the kind of world and t1.4' kind Of country we live in, that it nibsic be approached only with the 'greateie care. There are other circumstances to, consider. . ? t In the Mideast last month, theRus- sians did a good deal less to help their allies drive a foreign army off thei ,territOrY thark.Ahe United States. di for a Similar purpose in Vietnam. fly those American standards, the Soviet role was limited: no troops, despite Wel scare about them on Oct. .25, and 'lie' bombs. Or should the American lion be that we are entitled to do 'Cer?o! tam n things for our friends that the Russians are not entitled to do ;'.fori theirs?. ? For many Americans, the startlifit and new ?factor in the Mideast war ;wail that Moscow revealed and 'used in local operation a great-podier millthr tcapacity, including a tacit backup?vott. -strategic weapons. We aren't' acetWi tomed to it; we don't like it at alk:But; this is what the. reality of "parity", all about. Soviet, power had now btere 'reflected not only in summit docul ,ments be in capability on the grountli .American power is no longer the doinid nant outside influence in local con41 :tests. We will be years),, working thistt :out in various places with the: Rusitt, 'Mans. A sober response, not panio,iii, indicated. Finally, it is shortsighted to divorcel the war from the particular. grievancol '.which produced it?Egypt's and Syriksi Joss of territory to Israel in 1967. Tide..? grievance went untreated before OeteNi ,ber. Israel and the United States were, of the view that there was: still time for diplomacy. One can bemoan ,o 'curse the fact, but the outbreak of AIM war proved they were wrong. In the; best of worlds, detente would be for- ' , giving Of such failures Of judgment and political will: In the real world, forgiVe-, ness cannot be expected. It Is illusprxi to expect the kind fairy of detente' to spare nations from the consequences ;pl., their own mistakes. . To improve 'relations between great powers, the principal matters conflict between them should be e.ascil,; Fit* on the list is the Mideast. Fortcl,t-, nately, this Can be done without eitikeil great power's sacrificing the legitiniitti interests of it local allies. Secretatfph State Kissinger is quite right to Say!, that a settlement is the real test of)104.4,; tente , ' .11. f ? '4^MeS TIME 3 Dec. 1973 Risky Road of Retaliation Whispers about retaliation against the Arabs have been heard since the begin- ning of the oil boycott, and last week Secretary of State Henry Kissinger voiced them out loud. In a press con- ference, he warned that if the embargo continues "unreasonably and indefinite- ly, the U.S. will have to consider what countermeasures it will take." Saudi Arabia's Oil Minister Ahmed Zaki Yamani promptly replied that the Ar- abs might then cut oil production by 80% rather than just 25%, and destroy the economies of Europe and Japan. There are indeed countermeasures available to the U.S., but they are likely to prove either ineffective or disastrously risky. They fall into three classes: ECONOMIC. The U.S. could stop ex- porting to the Arab countries the hun- dreds, of millions of dollars of food and manufactured goods, such as autos and refrigerators, that the Arabs buy each year. That, however, would be totally ineffective unless the U.S. could per- suade its European allies to join in the boycott. Otherwise, the Arabs could eas- ily buy all the manufactured goods they need from Italy, France, Yugoslavia and other European countries. Right now the Europeans are so disunited and so eager to curry favor with the Arabs that they are talking about retaliation not against the Arabs but against one another. A concerted Western boycott on manufactured goods would hurt the Arabs, but the West needs Arab oil more than the pre-industrial Arab states need modern Manufactures. As for food, Agriculture Secretary Earl Butz. pointed out last week that the Arabs could read- ily replace U.S. grain with grain bought , from the Soviet Union. which has en- joyed a record harvest this year. The U.S. could try to freeze Arab oil money; about half of the $7 billion that Saudi Arabia and Kuwait have on deposit in the West is in U.S. banks. But much of ttat is held by European branches of the American institutions ?and the Swiss government, for exam- ple, is unlikely to permit Swiss branch- es of U.S. banks to block Arab funds. Moreover, unless the freeze was accom- , plished almost instantaneously. the Arabs could sell their threatened dol- lars for gold or other currencies, destroy- , ing the strength that the dollar has only lately begun to regain after 'two devaluations and a long siege of selling. ? POLITICAL. The U.S. could withdraw its military mission from Saudi Arabia, possibly troubling King Feisal. who has running difficulties with the Iraqis and South Yemenis, but the French would be happy to send a military mission as a replacement. The U.S. could also re- fuse to sell Saudi Arabia some 30 Phan- , tom jets it has been dickering for. That would only confirm an apparent Saudi 40 decision to buy French-made Mirages instead. There is some talk among European and U.S. politicians and businessmen of, an effort taget the United Nations to de- dare Arab oil an "international re- source." which would be thrown open to all buyers under U.N. supervision. But , such a resolution would never pass the General Assembly, where popr coun- tries hold the voting majority. MILITARY. Unhappily, the one coun- termeasure that would be effective would be invasion and occupation of the Arab oilfields. The U.S. could e