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September 30, 1974
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A OIL . / ,,~ ~,h~ ~~ O Approv For Relea ,tflW U01 ?1~6~ 11 10i i W P i M 9,,x.01 M /1L([6Li r '!'',o? / Greatest Bathrooms in Town s tyle t e secret `~40' Committee ^ SEPTEMBER 30, 1974/60 CENTS Approved For Release 2004/06/24: CIA-RDP CONTENTS Page 27 Inside Chase Manhattan: First Look at Rocky's Net Worth By Dan Dorfman Our man Dorfman has come into possession of docu- ments detailing the assets held by the Chase Man- hattan Bank for the "Nelson A. Rockefeller Trust." If you were surprised by that modest estimate of Rockefeller's net worth being passed around earlier this month-$33 million-you had every right to be. Counting just the assets in this account alone (there is said to be another at Chase that's somewhat larger), the Nelson A. Rockefeller Trust was worth, as of June 28, 1974, at least $126,776,331. It's possible that Nelson A. himself is not the sole beneficiary of this trust, Dorfman notes, and by itself it won't conclu- sively answer "how much Rocky is worth." But it floes provide the basis for a good guess. Page 31 The Deadly Battle to Become King of the Gypsies, Part II By Peter Maas Last week Peter Maas brought on the Bimbo tribe of American gypsies, and told of the troubles its present "king," Steve Tene, has had in holding on to his throne. In this concluding article, Mr. Maas goes further into those troubles, most of which are the doing of Steve's father, who was passed over in the kingly succession, and who tends to value the power drive above paternal love in dealings with his son. Page 43 In the Lav of Luxury: Great New York Bathrooms By Nancy Newhouse That small but necessary room (once talked about only in whispers, and subjected to so many euphe- misms that making up cute titles becomes child's play) has now come out into the open (so to speak), and has become the latest playroom for both in- ventors and decorators. We launch this three-part section with a set of personal pipe dreams: some dis- tinctive city bathrooms. Valuable help was given by Mary R. Smith in scouting them out (don't ask how), Photographed by Steve Myers. Page 51 Loo Tenants: Basic Bathroom Equipment By Elin Schoen Ms. Schoen, who avows a passion for plumbing, re- ports on all kinds of gadgetry-useful, decorative, or both-for the arresting rest room. Ms. Schoen also evaluates some bathroom-supplies dealers. Page 55 The Source of the Tile By Veronica McNiff Tile for bathroom floors and walls isn't only the sterile stuff that used to be standard. Tile designers, both foreign and domestic, have become very artis- tic of late. Ms. McNiff discusses what's around, and where it can be found. SEPTEMBER 30, 1974 Page 59 How Kissinger Runs Our "Other Government" By Tad Szulc President Ford has now admitted the fact of U.S. in- volvement in Chilean politics before and during the Allende regime. What is still obscure, however, is the nature of the little-known organization in the White House that authorizes such maneuvering. It is the so-called "40 Committee" of the National Security Council-an elite group of five officials, headed by Henry Kissinger-which is the closest thing in this country to a secret super-government body. It func- tions in a tenuous interlock with the National Se- curity Council and the entire U.S. intelligence-gath- ering apparatus, has access to unlimited government funds, can order covert espionage and paramilitary operations around the world, and is only nominally answerable to the president. Tad Szulc, veteran Washington reporter, reveals how the committee operates, and what its workings imply. THE LIVELY ARTS- Page 70 Music: Manon First By Alan Rich The City Opera's Marton Lescaut is good enough. Page 72 Movies: Top Liner By Tom Allen Richard Lester's juggernaut puts Poseidon to shame. Theater: Campille By John Simon The Ridiculous Theatrical Company is just that. Page 78 Books: Heller's Hell By Eliot Fremont-Smith Joseph Heller's novel is depressing and memorable. MISCELLANY Page 7 The City Politic: Some Tough Questions for Rockefeller By Steven D. Brill Like: What about Attica? Ross Perot? Civil Rights? Page 5: Letters; Page 13: In and Around Town Page 67: New York Intelligencer Page 68: Best Bets, By Ellen Stock Page 81: Sales & Bargains, By Sarah Harriman Page 82: New York Classified Page 88: New York Real Estate Classified Page 91: Puzzle, By Richard Maltby Jr. Page 92: London Sunday Times Crossword 9 ~~ . 0 Cover: Rocky as Daddy Warbucks, by David Levine. page 59 The following are registered trade names, and the use of these names is strictly prohibited: The Artful Lodger, Best Bets, Best Bits, The Bottom Line, The Capitol Letter, The City Politic, Cityscape, The Global Village, In and Around Town, New York Inteltigencer, The Passionate Shopper, and The Urban Strategist. New York is published weekly (except for a combined issue the last two weeks in December) by the NYM Corporation, 207 East 32nd St., New York, N.Y. 10016. Copyright D 1974 by the NYM Corporation. All rights reserved. Reproduction without permission is strictly pro- hibited. Milton Glaser, Chairman; Clay S. Felker, President; Ruth A. Bower, Executive Vice-President; John C. Thomas Jr., Vice-President, Marketing; Kenneth Fadner, Vice-President, Finance; Thomas B. Morgan, Vice-President; Sheldon Zalaznick, Vice-President. Second-class postage paid at New York, N.Y., and at additional mailing offices. Editorial and Business offices: 212 889-3660. Postmaster: send form 3579 to New York, Box 2979, Boulder, Colorado 80302. Subscription rates in Continental U.S. only: one year, $14; two years, $25. For subscription information, write Joseph Oliver, New York Magazine, Subscriptio^Department, Box 2979, Boulder, Colorado 80302. Approved For Release 2004/06/24: CIA-RDP7W00098A000400010001-6 VW Now Kissinger inns Our `Other government' By Tad Szulc No such overt and covert power in foreign policy has ever .. been vested in any man, except the president, in our history..." A shadowy group of five powerful ever done before; actually, no senior in Rome, Graham Martin, reportedly officials silently directing America's official had ever publicly mentioned the asked the Nixon administration for se- clandestine foreign policy from the committee. cret funds to bolster the Christian Dem- basement Situation Room in the White Ford, in fact, institutionalized the ocrats in Italy-just as the United States House in Washington-the so-called concept of covert intelligence action had done in the crucial 1948 elections. "40 Committee" of the National Secur- (it was not even done during the cold The 40 Committee reportedly also ity Council-is the nearest thing we war) when he commented that "Our has on its agenda the situations in Por- have in this country to a secret super- government, like other governments, tugal and Greece-where rightist re- government body. does take certain actions in the intelli- gimes collapsed earlier this year and Headed by Henry A. Kissinger, this gence field to help implement foreign leftist influences are feared by the U.S. committee is not always accountable policy and protect national security ... -as well as dangers facing the white even to the president of the United I am informed reliably that Communist governments in southern Africa in view States, although it has access to virtual- nations spend vastly more money than of Mozambique's impending independ- ly unlimited unvouchered government we do for the same kind of purposes." ence. The C.I.A. has a working alliance funds and holds the power to order far- Action against Allende between with South African and Rhodesian in- ranging covert intelligence and para- 1970 and 1973 was one of Kissinger's telligence services against leftist black military operations around the world. high-priority projects. He personally as- "liberation" movements. And during the Nixon Watergate era, sumed control of the C.I.A.'s covert Contingency planning to assure it may have had links with secret do- moves, through the 40 Committee, and United States access to oil reserves in mestic intelligence units, possibly in- of a parallel economic and financial the Middle East and elsewhere is like- eluding even the "Plumbers." blockade, working through an interde- wise said to be on the agenda. In fact, Deriving its name from National partmental task force. the C.I.A., working under a National Se- Security Council Intelligence Decision To Kissinger, it appears, Chile was curity Council mandate, did overthrow Memorandum No. 40, which set it up in a "laboratory" test case to determine the Iranian government in 1953 after its present form in 1969, the five-man whether a regime he opposed could be it nationalized foreign oil holdings. 40 Committee is the current incarna- "destabilized" or dislodged without the Past activities by the 40 Committee tion of similar top-secret White House use of military force that the United and its predecessors have ranged from groups that since 1947 have authorized States had chosen to apply elsewhere engineering the overthrow of foreign dozens of major covert intelligence un- in the past. Specifically, Chile was a regimes disliked by Washington to the dertakings from Asia to Latin America test of whether a democratically elec- creation of secret armies and counter- and from Africa to Europe. ted leftist regime, as was Allende's, insurgency units for the protection of The most recent known large-scale could be toppled through the creation governments enjoying our official fa- operation conducted by the 40 Com- of internal chaos by outside forces. vor. They have included political sub- mittee was the assignment given the Recent revelations of Kissinger's al- version, the subornation of statesmen, Central Intelligence Agency, at the leged role in the Chilean affair-he has politicians, labor leaders, and others cost of $8 million, to help orchestrate, denied any American involvement, al- abroad, "black" propaganda, and the from inside, the fall a year ago of the though the C.I.A., in effect, has con- oversight of "spy-in-the-sky" espionage regime of Chile's late Socialist presi- firmed it-have set off the latest con- over the Soviet Union, China, and dent, Salvador Allende Gossens, while troversy swirling around the secretary scores of other countries. other branches of the United States of state, and have raised again ques- Overhead intelligence is the only form f government applied a variety of simul- tions about his credibility and future rheactual 40 espionage n The the C I rv1ewhof taneous pressures from the outside. intentions. This increasingly controversial enter- There are reasons to suspect, for ex- intelligence agencies, and separate prise was stunningly confirmed by Pres- ample, that the 40 Committee is study- White House committees (also chaired ident Ford at his news conference ing plans for possible covert American by Kissinger) are concerned with the last Monday. His justification was both intervention in the confused political collection of normal intelligence. startling in philosophy and sparse on process in Italy, where the Communist The 40 Committee must approve, the facts, as he sought to give public party may soon share power in a coali- every month,overhead intelligence pro- legitimacy to the 40 Committee. tion government. Actually, more than a grams-from the regular launching of This was som thprove orl eleasee2004/06/24 former U.S. ambassador photo-satellites to :CIA-RDP79M00098A000400010001 6secret flights by the p NEW YORK 59 Approved For Release 2004/06/24: CIA-RDP79M00098AO00400010001-6 "... To Kissinger, Chile was a test case to determine whether a regime he opposed could be dislodged without military force ..." SR-71 spy planes-because of the risk of serious international complications. The U?2 incident over the Soviet Union in 1960 has not been forgotten. The monthly plans are submitted to the 40 Committee by a C.I.A. commit- tee so secret that its existence and its name-.-Comrex-have never before, to my knowledge, been publicly discussed. The National Reconnaissance Office, another top-secret organization under the 40 Committee's overall control, is responsible for the actual launching of overhead intelligence vehicles. For nearly six years, the 40 Com- mittee has been run by Kissinger, act- ing as chairman in his capacity of spe- cial assistant to the president for na- General George S. Brown, Chairman of the Joint Chiefs of Staff Deputy Secretary tional security affairs. It is not rele- vant in this context that he has also held for a year the post of secretary of state. His power in the field of clandes- tine foreign policy has been unchal- lenged since Nixon took office in 1969. It remains so under Ford. Kissinger has been for years the de facto boss of the United States intelli- gence community, greatly cutting down the influence of the C.I.A. in decision- making. No such concentration of pow- er in foreign policy has ever been vested in any man, except the president, in modern American history. Presently associated with Kissinger on the 40 Committee are Director of Central Intelligence William E. Colby, Chairman of the Joint Chiefs of Staff General George S. Brown, Deputy Sec- retary of Defense William P. Clements, and Under Secretary of State for Poli- tical Affairs Joseph J. Sisco. Member- ship on the committee is not personal: it goes with these four jobs. Because of successive changes in the other depart- ments, Kissinger is the only man to have remained continuously on the committee for the whole period. The possibility that the 40 Commit- tee may have had connections with secret domestic intelligence stems from the fact that former Attorney General John N. Mitchell began attending meet- ings in 1970. Given the secrecy cover- ing the 40 Committee, the White House Intelligence Decision Memo- present form in 1969. Approve never announced Mitchell's presence; it became known from congressional testimony. No other attorney general had ever before served on the 40 Com- mittee or on any of its forerunners. Richard Helms, the former C.I.A. head, also testified that he thought, but was not certain, that former White House Director of the Domestic Coun- cil John Ehrlichman and White House Chief of Staff H. R. Haldeman may have come to one or two 40 Commit- tee sessions. He said that they attended either meetings of the 40 Committee or of the Washington Special Action Group (WASAG), the White House for- eign policy crisis-management commit- tee. Both bodies are headed by Kissin- ger and have identical memberships. One intriguing question is whether the 40 Committee-or Kissinger-may have wanted the Plumbers to help out in the covert operations against Chile. A half-dozen unexplained break-ins into offices and homes of Chilean diplomats in Washington and New York in the spring of 1972, just before Watergate, have been attributed to the Plumbers, although there is no proof . Kissinger had had indirect dealings with the Plumbers since 1971, when he listened to an interview tape-recorded by David Young, his former aide and subsequently a Plumber, with a navy yeoman charged with secretly passing National Security Council documents to the joint Chiefs of Staff. To understand the basic functions of the 40 Committee it is essential to real- ize that almost invariably United States policy is executed on two parallel lev- els: overt and covert. The overt policy is visibly carried out by the State De- partment and other above-the-board agencies; the U.S. takes full responsi- bility for all their actions. Covert policy, which must never be traced back to the president and the United States government (though it often is so traced because of failures or disclosures in the press or elsewhere), is the province of the 40 Committee to- day, as it was the responsibility of its predecessors. It is thus an error to ascribe such American international adventures as the 1953 coup d' etat in Iran, the over- throw of the leftist Guatemalan regime in 1954, the 1961 Bay of Pigs invasion of Cuba, the 1964 intervention in the Congo, the formation of the "secret army" in Laos in 1961, or the most re- cent involvement in Chile, to aberra- tions by a wild-running C.I.A. In every instance, major undercover intelligence operations had been for- mally approved by secret political com- mittees before the C.I.A. was free to proceed, although many, if not most, of these actions were unquestionably first proposed by the agency. Because of the extraordinary secrecy William E. Colby, Director of Central Intelligence Henry Kissinger, Secretary of State and Special Assistant to the President for National Security Affairs Joseph J. Sisco, Under Secretary of State for Political Affairs ed For Release 2004/06/24 CIA=RDPZ9M00098 O Q0010001-6 Illustrated by Burt Silverman Approved For Release 2004/06/24: CIA-RDP79M00098AO00400010001-6 "... Aerial espionage plans come from `Comrex,' a C.I.A. group so secret that it has never ever been publicly discussed..." surrounding the deliberations of the 40 Committee, and the complex system of special top-secret clearances designed to confine the number of officials apprised of covert operations to an ab- solute minimum, the government as a whole is kept totally in the dark about undercover foreign policy, even if it carries the risk of a full-fledged war. 'There have been instances over the years when even secretaries of state remained uninformed about large co- vert operations and actually believed the White House-inspired "plausible denial" when the C.I.A. or the Penta- gort were caught red-handed some- where in the world. "Plausible denial" is one of the principles upon which the 40 Committee and its forerunners have operated. The idea is that the denial of a secret foreign enterprise must be believable enough to protect the presi- dent from embarrassment-or worse. Consequently, overt and covert policies often run at cross-purposes. C.I.A. Director Colby, an old hand in clandestine operations, claims that covert activities have been sharply cur- tailed in recent years. But in a speech in Washington earlier this month before a conference on "C.I.A. and Covert Ac- tions" organized by the Center for Na- tional Security Studies, Colby said that "in a world which can destroy it- self through misunderstanding or mis- calculation, it is important that our lead- ers have a clear perception of the mo- tives, intentions, and strategies of other powers so that they can be deterred, negotiated about, or countered in the interests of peace or, if necessary, the ultimate security of our country. "These kinds of insights," Colby said, "cannot be obtained only through tech- nical means or analysis. From closed societies they can only be obtained by secret intelligence operations, without which our country must risk subordi- nation to possible adversaries." This, of course, referred to espio- nage by the C.I.A., presumably in Com- munist countries. But Colby also made a case for the kinds of covert political operations-such as those in Chile- that are of immediate concern to the 40 Committee. "There have also been, and are still, certain situations in the world in which some discreet support can as- sist America's friends against her ad- versaries in their contest for control of a foreign nation's political direction," he said. "While these instances are few today compared to the 1950's, I believe it only prudent for our nation to be able to act in such situations, and thereby forestall greater difficulties for us in the future.... I would think it mistaken to deprive our nation of the possibility of some moderate, covert action response to a foreign problem and leave us with nothing between a diplomatic protest and sending the ma- rines," Colby added. In effect, Colby was saying that the United States should act to intervene covertly in the internal affairs of other nations if a new Chile-like situation arises in the future. He could well have been thinking of Italy, Greece, Portugal, or an African country when he spoke of the "control of a foreign nation's political direction." And, clear- ly, the definition of what constitutes "discreet support" and "moderate co- vert action" is left to the C.I.A. and the 40 Committee. Colby was accurate in insisting that the C.I.A. performs covert intelligence operations-its "dirty tricks"-"only when specifically authorized by the Na- tional Security Council." In fact, the National Security Act of 1947, which created the C.I.A., provides that "it shall be the duty of the Agency, under the direction of the National Security Council ... to perform such other func- tions and duties related to intelligence affecting the national security as the National Security Council may from time to time direct." Colby thus laid the responsibility for the C.I.A.'s far-flung subversive activi- ties at the door of the 40 Committee, which is the National Security Council body in charge of approving covert in- telligence operations. This was a way of saying that the C.I.A. will carry out whatever Henry Kissinger deter- mines-and let him take the blame or the credit-even though Colby, too, sits on the secret committee. In practice, a decision made by the 40 Committee is communicated to the director of Central Intelligence in a National Security Council Intelligence Decision Memorandum. The authoriz- ing document, known as a N.S.C.I.D., is handed by Kissinger to Colby for im- plementation. Colby, of course, wears the two hats of director of the central intelligence community and of director of the Central Intelligence Agency. Colby then issues a D.C.I,D. (Director Central Intelligence Decision) to the C.I.A (which means himself) or what- ever other agency-the Defense Intelli- gence Agency, the National Security Agency, or the State Department's Bureau of Intelligence and Research- may be involved in a covert operation. At the C.I.A., projects approved by the 40 Committee are handled by the Covert Action Staff (formerly the Psy- chological and Paramilitary Division), one of the clandestine service branches in the Directorate of Operations. In a case like Chile's, where the plan called for creating economic chaos, the C.A.S. would turn to its Economic Warfare Section as well as to other specialized sections. The Fi- nancial Section, for example, would be in charge of secretly purchasing cur- rency of the target country for opera- tional use. In his new book on the C.I.A., Philip B. F. Agee, a former clandestine services agent, tells how the agency had to covertly buy hundreds of thou- sands of dollars' worth of Chilean escudos in New York, Lima, Rio de Janeiro, and Montevideo to help fi- nance its covert operations against Al- lende during his unsuccessful presiden- tial campaign in 1964. Massive conver- sion of dollars into escudos in Santiago would have aroused suspicion-re- cent testimony by Colby showed that the C.I.A. had invested $3 million in the 1964 campaign-and the agency was thus forced to fly valises of Chilean money into the country. Kissinger, caught in the recent Chil- ean controversy, has been telling friend- ly newsmen that he should not be blamed because, after all, "95 per cent" of operations proposed to the 40 Committee originate with the C.I.A. The record and a certain knowledge of the 40 Committee's modus operandi do not entirely bear out Kissinger's exculpative assertions. In the end, the final decision is his-or the president's. All indications are that Kissinger raised the Chilean problem in the 40 Committee when it met in the White House, Situation Room on June 27, 1970, to consider actions if Allende were elected on September 4. Kis- singer was quoted as saying that "I don't see why we need to stand by and watch a country go Communist due to the irresponsibility of its own people." It was at that meeting that the com- mittee authorized the C.I.A. to spend $400,000 for covert political propa- ganda against Allende's candidacy. A former White House official re- ports having seen a memorandum with an August, 1970, date, signed by the C.I.A. liaison offier with the 40 Com- mittee, authorizing the expenditure of $200,000 in unvouchered funds for the covert media campaign against Allen- Approved For Release 2004/06/24: CIA-RDP79M00098AO00400010001-6 62 NEW YORK Approved For de. The memorandum was on White House stationery and made no reference to the 40 Committee. The 40 Committee keeps no files, and written references to it in official documents, no matter how secret, are forbidden. On July 24, 1970, Kissinger ordered his regular staff to prepare a National Security Study Memorandum on Chile. Known as NSSM-97, this secret docu- ment outlined options for the Nixon administration should Allende win. The options ranged. from the type of clan- destine C.I.A. action ultimately un- dertaken to severe economic measures designed to undermine the Allende government and create chaos that, it was hoped, would lead to a military revolution. Allende won a plurality, but not a majority, in the election, and a runoff was to be held in the Chilean Congress on October 24 between Allende and Jorge Alessandri, the conservative run- ner-up supported by the United States. On September 18, therefore, Kissinger reportedly proposed to the 40 Commit- tee that the C.I.A. be authorized to ex- pend $350,000 to bribe Chilean con- gressmen to vote for Alessandri. By all accounts, then C.I.A. Director Richard Helms was cool to the idea on practical grounds, as was Charles A. Meyer, then assistant secretary of state for inter-American affairs, who was in- vited to be present as an expert at the 40 Committee meeting. Kissinger, how- ever, carried the day with the support of the other 40 Committee members, including U. Alexis Johnson, then un- der secretary of state for political affairs. Helms fell into line. As Colby testified in a closed con- gressional session last April, the 40 Committee ultimately approved a total of $8 million to "destabilize" the Al- lende government. In earlier testimony, Kissinger had flatly denied any United States or C.I.A. involvement in the Chilean coup. In his appearance at the Center for National Security Studies, Colby did not deny that the C.I.A. had spent the $8 million in Chile. He insisted, how- ever, that the money was not used to trigger the coup, but "to help our demo- cratic friends in Chile" to vote the Socialist regime out of office in the 1976 elections. Colby did not explain why America's friends were "democratic" while the Allende crowd, put in office in a free election, were not. But even if the C.I.A. and Kissinger really were not aiming at a coup, the fact remains that the U.S. had deeply intervened in Chile's internal politics. Intervention in inter- nal affairs of a pro-U.S. or neutral country by Communists is, of course, regarded by Washington as a heinous act, justifying reprlpproved For Rel A MODULAR LOFT-BED SYSTEM ? r ? r ? r r ??? r .r ? r ? r r . r r ? MODULAR FURNITURE VISIT OUR FACTORY DISPLAY 10 AM TO 8 PM MON.-SAT. OPEN SUNDAY 11 AM TO 5 PM 120 WEST 20TH ST. 212 255-9048 -Y.7, IC-011 k 14/46/24;: CIA-RDPM We dry harder. Dry Gilbey~. Dry Boissiere. When a great dry gin and a great dry martini. So a Gilboissiere dry vermouth get together, the result martini has to be a great dry martini. is - almost inevitably - a great Dry it ... you'll like it. lj,),,siereVer1T-uth buie importer U.S A. MUnson Shaw Co. NY Distilled London Dr%)Gin. 96pr~)f. l(X)%q,ainne,it,al,p,nts W & A Gilbey. Ltd. Distr by National Distillers Products Co . 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The president then concluded, in words probably not heard publicly since Teddy Roosevelt's day, that what the United States had done in Chile was "in the best interest of the people in Chile, and certainly in our best in- terest." With this, Mr. Ford took us back to the "Father Knows Best" ap- proach in American foreign policy. However, the real problem with the Ford exposition is that it flies in the face of facts, and suggests that the new president does not do his homework in a crucial area of foreign policy. Instead, he seems to rely on advisers who either do not know any better or act self- scrvingly. In the first place, the Allende regime never openly violated the Chilean con- stitution. The Chilean Congress, domi- nated by Allende's opponents, func- tioned until the last day (there is no Congress, nor even political parties, under the military junta that replaced Allende) ; there was no serious inter- ference with the freedom of speech and press (now there are only pro- government newspapers) ; and there were no political prisoners other than a few persons charged with political crimes such as assassination (now there are at least 20,000 political pris- oners, and torture is common). Allen- de, in fact, lost two important congres- sional and municipal elections after coming to power. Obviously, the leftist Allende re- gime fought its opposition through a variety of means-not all that different from what Mr. Ford's political party here did to the Democrats under his predecessor. To be sure, there were ex- treme leftist armed goons and terrorist squads, but the right-wing opposition had its own armed groups. It would be useful to learn whether any of the opposition's weapons came from the outside as the United States aided its "democratic friends." In the second place, the opposition press in Chile (comprising the majority struction-certainly not to the tune of $8 million or whatever sum the C.I.A. spread among its media clients. El Mercurio, the principal opposition newspaper in Santiago, was closed down once or twice for short periods for advocating insurrection. It is true that El Mercurio's owners were divested of their banking and shipping hold- ings, but this was hardly an injury to the freedom of the press--and certain- ly none of our business. Mr. Ford's astounding comments, coming in the wake of Colby's admis- sions on the role of the C.I.A. in Chile, not surprisingly led the Senate Foreign Relations Committee the next day to vote to reopen its investigation of the American participation in the Chilean events. 1 t may become the president's first serious dispute with Congress over foreign policy (senators take a dim view of the Ford contention that the 40 Committee and covert "dirty tricks" abroad are fully justified), and former senior C.I.A. and State Department offi- cials may face contempt and perjury charges for their earlier denials that the United States was involved in anti-Al- lende activities. Inevitably, Kissinger's credibility is once more at stake. And there still remains the question of violating international law through such acts. Most international law ex- perts agree, at least in theory, that U.S. covert activities violate it more fre- quently than anything perpetrated by the Russians or the Chinese outside their immediate area of influence. President Ford, however, is not in- terested in legalities. He told his Mon- day news conference that "I'm not go- ing to pass judgment on whether [the destabilizing of foreign governments] is permitted or authorized under in- ternational law. It's a recognized fact that, historically as well as presently, such actions are taken in the best in- terests of the countries involved." He was apparently making the point that, what was good enough in the past is good enough today. Then there is the problem of the 46 Committee's accountability. The C.I.A, is accountable to four special congres? sional subcommittees, though none of them ever seriously questions th( agency's activities and expendituret The Senate Armed Services Subcon mittee on Intelligence sometimes fai' to meet more often than once a yea But the 40 Committee is not accour able to anybody. There are no minut or RelLaggn2b ~'! '4r:,cIAhpl 1f`916' o 9$'i~O o4do' 090 th. Additional Approved For Re Kissinger also runs the 40 Committee through telephone consultations. But inasmuch as the other four members are burdened by their day-to-day duties, Kissinger in effect often obtains unani- mous decisions almost by default. In the area of accountability, too, President Ford was either misinformed himself or misinforming the public. He said that the 40 Committee's decisions are "relayed to the responsible con- gressional committees, where [they are] reviewed. . .." This, of course, is not so. There is no known instance of the 40 Committee-or its chairman -consulting with any congressional committee about what it orders the C.I.A. to do. When a committee dis- covers something, it comes from the press or, begrudgingly, from the C.I.A. after the fact. Under the Kennedy and Johnson ad- ministrations, when the super-govern- merit body was known as the "303 Committee" (under Eisenhower it was called the "54/12 Committee" and un- der Truman it was first the "10/12" and then "10/15"), the preparatory staff work was of greater importance than it is today. The 40 Committee, the State Depart- ment, the Pentagon, and the C.I.A. still prepare the agenda quite carefully, but it carries less weight. In the State De- partment, this function is in the hands of the Intelligence and Research Bu- reau. At the Pentagon, the work for the deputy secretary of defense and the chairman of the Joint Chiefs of Staff is done by the special assistant to the secretary of defense for covert in- telligence. The C.I.A. prepares the agenda in Colby's executive offices. The tentative agenda is first reviewed by State, Defense, and C.I.A. officials to determine which projects should be presented to the full 40 Committee. But most operations-when they reach the 40 Committee-are approved with only limited scrutiny. They may range from ongoing operations in, say, Indochina, to the intervention in Chile, exploratory covert actions in Italy or Greece, or something as insignificant as authorizing the spending of $50,000 to help out a friendly newspaper in a foreign country. For years, the 303 and 40 Committees approved expenditures through the C.I.A. to keep alive Radio Free Europe and Radio Liberty-broad- casting, respectively, to Eastern Europe and the Soviet Union. Not surprisingly, for security rea- sons, the 40 Committee has virtually no staff of its own. Formally, a single C.I.A. official is assigned to the com- mittee to handle the staff work; he is assisted by a typist who probably has the highest security clearance of any secretary in WashinAproved For R VVMM slim NUNN CM the excitinl,, and mysterious cocktail lounge at the Benihana Palace, 15 W 44th St., 682-7120. Move over Oscar &Tony& Emmy. Ourdinnerswin awards every night. Our menu is big. Our prices are modest. Our surprises are many. CBS Building, 51 W 52 Street 751-5152 PILLOW FURNITURE Makes It Happen 229 East 53rd Street Man-Sat,IOAM-6PM 10 Oak Street Between 2nd & 3rd Ave. thursdays Until 9PM At The Mews Mall New York, New York 10022 Southampton, New York 11968 164967200M16/24 BlelAqqgp7-Mj4O98O IUo310001-6516/283-6464 Bring your body Appr Release 2004/06/24: CIA-RDP79'Id,9b098A000400010001-6 In for a tone-up: Why be desk-bound and flabby? You owe it to yourself to keep physically fit. Your body needs the right kind of attention. At the New York I lealth Club we help you achieve a healthier, more beautiful life style through pleasurable exercise. When you feel better, you look better! For pennies a day you can swim in a beautiful pool, bask under sunlamps, sauna, dunk in the whirlpool bath, enjoy classes in calisthenics, yoga, dance, karate, hydrocalisthenics and belly dancing. Visit our nearest branch and use our fabulous facilities - no obligation. MEN & WOMEN 10 AM to 10 PM weekdays 10 AM to 6 PM weekends The New York Health Club There are indications, however, that Kissinger maintains private liaison with the C.I.A.'s clandestine services, known as the Directorate of Operations, through another C.I.A. operative. This would make it possible for Kissinger to bypass not only his own 40 Committee but even C.I.A. Director Colby. In the past, Kissinger had a similar personal "back channel" to the Joint Chiefs of Staff to bypass Melvin R. Laird, then secretary of defense, to order covert air strikes in Indochina. The National Security Council. is di- rectly subordinate to the president. As an organ of the N.S.C., the 40 Com- mittee is theoretically accountable to the full National Security Council as well as to the president. There is no evidence, however, that the 40 Commit- tee ever reports to the--Council. What is not known is whether Kissinger seeks presidential approval for every decision taken by the 40 Committee. "You can argue that in some cases Kissinger will not inform the president of the United States of a covert opera- tion in order to protect him from knowledge and avoid embarrassment to him," a senior intelligence official said. "If the scheme works he can de- cide later whether the president should be bothered with the details. If it fails, there's plenty of time to tell him. And sometimes presidents figure that what Skied Sugaloaf Lately? You don't have to go thousands of miles to find big mountain skiing. Compare Maine's Sugarloaf: Sugarloaf, Maine 2,600 Alta, Utah 2,000 Park City, Utah 2,400 Mammouth Mountain, Cal 2,300 Taos, New Mexico 2,613 Alyeska, Alaska 2,20(1 Stowe, Vermont 2,150 Sugarbush, Vermont 2,400 Then consider that we've installed snow making from top to bottom.of that 2,600 feet. Add our 9,000 ft. gondola. our Alpine-style Village Center full of stores and a valley full of inns (authentic New England farmhouse, mansion on a hillor swinging!night spot)and you'll see: on skiis or off. Sugarloaf is the place to g0 for fun this Winter. Want details? Call or write: Sugarloaf/USA Kingfield, Maine 207-237-2000 One Call Reservations 237-2861 Name Address City they don't know doesn't hurt them, so long as it doesn't get out of hand." There is a legend in the intelligence community that only the president can authorize the assassination of a foreign leader. This is, so the story goes, one time when the chairman of the 40 Committee simply must consult the president. But no official in Washing- ton can say whether this has ever been tested. "The president doesn't order assassinations-period" is the answer to inquiries on the subject. Still, one is haunted by the thought of such extraordinary power being so tightly held and exercised in absolute secrecy by a tiny group of men-even if it does sometimes include the presi- dent. C.I.A. Director Colby's claim that, in effect, the United States must have the option to covertly do away with any foreign government it finds objec- Os Presents. STARTING SEPT.25th & Every WEDS. DANNY and the JUMPING JACKS THUR-FRI-SAT-SUN SEPT. 26-27-28-29th NATURALLYALL STAR SHOW GROUP 11/2 11; LOBSTER SPECIAL $5 95 COMPLIMENTARY RES. 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And it is Henry Kissinger, speaking for the United States, who rhetorically invokes the principle of world order. As for President Ford and his "open administration," his view is that noth- ing needs changing: he told his news conference last Monday that "It seems should itt 40 C h h omm ee at t e to me t SugarloafIt'S.\, attn. dept. 5 ? Y ? t ~. I~L TAKEA DRIVE TO ANART LOVER'S PARADISE! MIRO ? CHAGALL ? PICASSO BELLOWS ? BILSHEMIUS DURER ? GROSZ FIN DE SIECLE POSTERS & JAPANESE PRINTS ART FAIR GALLERY "Like A Visit To A Museum" 126 Larchmont Ave., on US 1 LARCHMONT. N.Y. (914(834.9474 FRI., SAT.., SUN. ONLY 11-5 P.M. Kingfield, \ t c 04947 continue In ex s ence. I 'A~proved For Rel ase 2004/06/24: CIA-RDP79M00098AO00400010001-6