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December 16, 2016
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December 6, 2004
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December 5, 1979
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Approved For ReIse 2005/01/13: CIA-RDP80BO1554Rt 300190041-5 The Director of Central Intelligence Washington. D.C. 20505 5 December 1979 MEMORANDUM FOR: The President The Vice President Secretary of State Secretary of Defense Chairman, Joint Chiefs of Staff Assistant to the President for National Security Affairs In view of the tension between Iraq and Iran and the possibility of military conflict, we have done a brief appraisal of Iraqi armed forces. A copy is attached. ~ttachmp Copy No. 7 STANSFIELD TURNER DCI/dlg (5 Dec 79) Distribution: Copy 1 - President 2 - Vice President 3 - SecState (Copies 1-6 handcarried by DCI) 4 -- SecDef on 6 December 5 - C/JCS 6 - Asst. for Nat.Sec.Affrs. 7 - . E R_ ....__ 'Approved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 25X1 Approved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 Approved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 ;Lir TICLE APPEA ON THE WASHINGTON POST 2 December 1979 The-Mysterious. ,.Connections of John Ellsworth By lfaxine Cheshire,.-.-.''. T WAS,. AT a. White - House r?. Christmas.Tparty in .1977 that First Lady Rosalyn;', Carter, ' standing beside. the, holly- decked mantle in. the State Din- ing Room, was first introduced to a 300-pound, self-proclaimed Santa Claus named John Ellsworth. , Ellsworth-felon, forger and 'gov- ernment informer on friendsanct foes alike-bears little resemblance to St. Nicholas. But his con-man's eyes can be very!, merry and his expansive girth., can shake like a bowlful of jelly when he tells you-as.he first told Mrs. Carter- of his love for the little children of the world and this idea he had-for circling the globe, dispensing the good things of life to deprived youngsters. With that spiel, Ellsworth ensnared Mrs. Carter and later her son Chip into lending respectability to the. Interna- tional Children's Appeal, a questions-.: ble charity scheme that one partici-_ pant has since described as "the scam of the century." Who is John Ellsworth and how has he managed to cause so, much trouble for so many people-including the Carters-and still ride around Manhat- tan in a chauffeured baby-blue,,Lin coin limousine, seeming to have nq tro-. ubies of his own? Ellsworth,- a high school drop-out,. has told people he once drove a taxi Using the name John James he toured with the Rolling Stones and appeared on camera in the film "Gimme Shel- ter." Ellsworth says he got close to "Can- didate Carter" in 1976 by going down to Plains with a camera crew to make a documentary movie for a "black union" he represented at the time. Plans to show the film on television never worked out, he says. He got close to Rosalynn Carter with a similar ploy, he says. He got permis- sion from the White House to do a doc- umentary movie on the annual Christ. mas party for diplomats' children. - It was at that party that he first told. her about the ICA. He promised to use it to raise money for her favorite char- -ity, the "Cities in Schools" program which operates out of the Executive Office Building. ICA raised $7,500 for "Cities in Schools" through one Isaac Hayes concert at Constitution Hall and in total, Ellsworth says, contributed between $80,000 and $70,000 to the pro- ject. In exchange, Ellsworth got prestige money. can't buy. He had business cards printed for ICA with Chip Car- ter's name on them, even though, the president's son wasn't working for ICA.. He was working for "Cities in Schools." Ellsworth and a. girlfriend attended the Egypt-Isragli peace treaty signing at the White House in March, an honor that greatly impressed those of his partners looking to continue expand- ing their operations in the Middle East.. These. days, no ? one at the -White House will answer any questions about Ellsworth or ICA or even return phone calls if they are told he is the subject of inquiry:. John Ellsworth and a group of other- "independent businessmen" had formed an organization called the in- ternational Children's Appeal in New- York, according to an ICA brochure, to "provide the fund-raising 'mechan- isms" for agencies all over the world which wanted to support the United Nations International Year of. the Child:. . What Ellsworth didn't tell Mrs. Car; ter was that the.-"independent bu- sinessmen" associated with. him in- cluded a- number of organized. crime. figures who had one plan to solicit "donations" from top labor Ieaders. and keep.a percentage for themselves; .and another plan for ICA to sell toysl manufactured by a New York factory} that a law enforcement source says is al front for loan-.sharking and narcotics operations. The "independent businessmen also included: ? One partner who was ,a friend of PLO leader Yasser Arafat; and had plans for taking over all -hashish growing and trafficking out ofI Lebanon. s One partner who had a scheme to kidnap the shah of Iran and use the' ransom money to arm certain Third World countries.. - ? One partner with alleged Ameri-i can CIA connections who actually-, dealt in arms, with a ca og that in eluded a aser gun a can cu a eel - an Ulf:' i 'Partners who were drilling for oil in Ghana, building a hotel in Cairo and; claiming Anwar Sadat's son-in-law as a co-investor, negotiating contracts to' split $2-million fees 50-50 with Muham-1 mad Ali' for a series of personal ap-! pearances in various Middle Eastern, countries. ? Partners who were planning to use Carter administration contacts to' produce a $10-million television series about a presidential assistant who drops out and becomes a hitch-hiker. Millions, possibly even billions, could have been made on the International Children's Appeal. One former associ- ate of Ellsworth's claims that one deaf alone was expected to bring $ 400 mil- lion and "four of us were going to each take out $10 million apiece as our ` share." Ellsworth admits to having person ally "blown $2.8 million" on high-living: since he started ICA. And he helped; one of his partners wire-transfer an other $1.2 million to banks in Beirut-_ ; "But it was our own money, made out legitimate business deals," he says. "It,, wasn't taxpayers' money and it wasn't; the public's money. So whose business' is it?' John; Ellsworth-whose alias in po-! lice files-around the country include: John Jaymes, Clifford J. Ellsworth and: Thomas Fiorella-did not drop down: the White House chimney three: Christmases ago.. So how did he get there? John Ellsworth and-his activities for .the past 11 years are well known to atl least a half dozen U.S. government agencies, including the Secret Service. By Ellsworth's own account, at least one member of President Carter's per-, Approved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 - roved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 Approved Fe*Release 2005/01/13: CIA-RDP80B015 8003300190041-5 t DEC 1979 the Have we yet arranged for A group of businessmen to meet with in St. Louis. If not, I'll have to decide whether to go through my host at the last Business Council, John Hanley, or Bill Webster to do that. It seems to me we ought to get going on it. We've only 60 days. Beyond that, we ought to look at the next one for March. Approved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 Approved For Re-Lease 2005/01/13 : CIA-RDP80BO1554RQ03300190041-5 Secret Service for "cooperating'. in a counterfeiting investigation. - The agent expressed "surprise!' at .seeing Ellsworth socializing with the Carters, Ellsworth says, but did noth Ing more than caution him tcv"behave like a good citizen." John Ellsworth does not like the) word "informant." He prefers to de- scribe himself as someone who hasi "cooperated" in the past with govern- ment - investigators. He said he has+ "cooperated" at one time or another with the Secret Service, the Federal Bureau of Investigation, the- Internal Revenue Service, the Drug Enforce- ment Agency, the Central Intelligence Agency and the Organized. Crime Strike Force in the Eastern District of New York. . A DEA spokesman refuses to con- firm or deny reports that Ellsworth has a DEA informant's file number. But. the spokesman, Ted Swift, 'says there is "not a scintilla of truth" in a claim made by Ellsworth to a reporter recently that the ICA was actually a worldwide- narcotics investigation "front" that had taken him and the government "five years to put to- gether" and is still "ongoing." The DEA did not alert the White House that Ellsworth might become an embarrassment to the Carters, Swift says, "because we didn't know any- thing about what he was doing-." But somebody in _ the government must have known and why they did not warn the White House remains a mystery. .:. The government has. been making a lot of cases against Ellsworth's former friends and associates. Sixteen of them were Indicted in New York in April on. Scnspiracy., charges involving mari- juana, cocaine and hashish. Another four have been arrested o extortion, charges.-.One. was. "Joey the 'Priest" Calder or Brooklyn who is. a business associate of known organized crimefigures.. -Ellsworth:-who-talked.:_-with-i, re, porter for eight hours recently, confir- med that he had. signed letters of :agreement with "Joey the Priest" that .Would,; - have, ;given-- him, - and "`his people" a cut from two different deals with ICA involving labor union dona- tions and toys. . ' ..I 'i . " L. o apart-of this toy. corn- :parry," Ellsworth says. "I meet with- :.him in a- Chinese restaurant on 68tb ==Street and he brings his lawyer and he .says he can give us a monopoly on se11- -ing these stuffed toys to all the street festivals the church runs in New York. ,He was in the seminary, you know, ;that's how he got his name, and he' brings me this real priest who guaran ;tees the deal." . The charges against "Joey th '; riest" last week involved topless bard :and had nothing to do with Ellsworto ,or, the ICA that Ellsworth admits) --knowing-anything about.... other. Brooklyn mobsters c:= .James Eppolito and his. son Jimmy, ;were shot to death. in early October. Some law enforcement sources have blamed the killings on the fact that the younger Eppoiito's involvement with Ellsworth and ICA were attracting too much attention. Young Eppolito, who had his picture taken here with Rosalyn Carter in April,. at a luncheon for "Cities in Schools," was in charge of lining up "contributions" from labor leaders in the AFL-CIO and the teamsters and elsewhere, Ellsworth says. ' Ellsworth claims to have had a tel- ephone call after the killings, telling him not to get "too curious" and in- structing him to "take care of" Jimmy Eppolito's widow financially. Ellsworth laughs when told that many of his former e ploves are convinced that he himself an3aer because it is widely believed in certain criminal circles that he "works for the Iee saying that," he says. It's true ` Three former employes of ICA claim Ellsworth bragged he caused Studio 54.~ its troubles with the federal govern. ment. Ellsworth had gotten into a fight with one of the disco's owners, Steve Rubel); when ICA took the place over for a Halloween fund-raiser in 1978. Ellsworth just smiles and says things j about "the wheel coming around" and "all of us getting what's coming to us." But he still has connections. Sitting in the Madison Avenue office of one- of. his lawyers two weeks ago; 'Ellsworth dialed from memory a lot of his contacts in government, the Secret Service. and- the Justice Department; talking to them ;while a-. reporter. Iis- tened. ..Can you-still-dial' into that-govern- ment computer bank. John?" the law-, -yer asked,. explaining to the reporter. "God!-How I-wish I had been in the col-i lections business- when he had that code-and-access I mean to tell you-this] guy couldfind out anything about any-, body- from that computer." Ellsworth explains that he no longer has. direct computer access. "There; were too many abuses," he says. "The+ wrong kind of people` were- using its .that t agency, he claims, an ey owe fi e won't tell the whole story, us dropping the facts that it involved Russian spy ship a sa in -to al ves oplis up mffLon woron worth o meat which Ensworth was supposed t be selling to the Greek governmen an never did. Ellsworth also claims to have tipped t fie to the fact t ha t sir station chief was going to be assassinated in t ens six months before tt appened. He also claims to have assisted the Secret Service in, preventing an assas sination attempt against a former prime minister of Turkey at a New York hotel.. -_ .-. , .. _ ... __. A lot of what. Ellsworth says about himself is substantiated by reliable government sources and the rest can neither.. be proved nor disproved. When he came before a federal judge in Brooklyn in 1976 on a charge he lates.beat, "one. or more government agencies" wrote letters in his behalf, saying', that* he had been of value to them in the past. and would be again. The, agencies - are. not identified in o rec F o elease 1 05/fi'i'll IT CIA-RDP Approved For B01554R003300190041-5 ' a f o t - Approved For Relsyase 2005/01/13`: 6IA Ri 4t4ii- 3300190041-5 5 December 1979 MEMORANDUM FOR: General Counsel FROM: Director of Central Intelligence SUBJECT: Comparison of Executive Orders I would appreciate it if you would have one of your people very quickly do a rough comparison of President Ford's Executive Order and Executive Order 12036 with respect to the restrictions on intelligence. I'm not looking for a legal document, but simply a recounting of whether the Carter Executive Order is more or less stringent than the Ford Executive Order, and in which areas. ATL D TURNER Approved For Release 20054 LREA R003300190041-5 iI.FPT STAT 25X1 Approved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 Approved For Release 2005/01/13 : CIA-RDP80BO1554R003300190041-5 Approved For Release 2005/01/13: CIA-RDP80BO1554R003300190041-5 Ex-Ervoy O'arrdo Letelier Manuel Contreras Sepulveda After the 1976 car-bombing assassination of Letelier, Chilean spy chief Contreras was charged with directing the conspiracy, other Communist giant, China, has introduced a new di- mension into American efforts to counter "hostile" intelli- gence activities. Handicapped for more than 20 years by a lack of official representation in the U.S., China since 1971 has opened a permanent U.N. mission in New York as well as diplomatic establishments in Washington, Houston and San Francisco. Intelligence officers- already have been de- tected-within China's official contingent. As with Moscow, the numbers are significant. After open- ing its liaison office in Washington in 1973 with a mere 10 officials, Peking is now planning a full embassy staff of 400. The FBI's Webster already is sounding the alarm about strains this influx is placing on his bureau. Apart from the increase in China's official representa- tives, American counterintelligence officials are concerned about the rising number of Chinese students. Some 700 to 1,000 are expected in American universities this year, most in departments specializing in science and technology. Because of its backward economic condition, Peking is thought to place heavy emphasis on industrial espionage. Suspected Chinese agents, for example, are known to be ac- tive in heavily ethnic areas of West Coast cities. A- prime target area: The so-called Silicone Valley in California, a concentration of think tanks and defense contractors in the San Francisco vicinity. "Out there, the Chinese are talent spotters, looking for that guy they can use in the future," a knowledgeable expert explains. American officials say the Chinese expend a great deal of energy probing what the U.S. knows about the Soviet Union. No scrap of information is considered too trivial by the Chinese when it comes to their archadversary. Long before the U.S. gave its approval for Moscow to engage in massive wheat purchases this year, the Chinese were busily collecting information about the deaf One persistent que- ry: What price were the Russians willing to pay? Refugee Flood Poses New Threat Another component in the "hostile" espionage campaign is the flood of exiles and refugees reaching American soil. One recent spy prosecution resulted in the conviction of a Vietnamese expatriate, David Truong, together with Ron- ald Humphrey, a U.S. Information Agency official recruited to steal classified docuuienta~[2~A1143 mist Vietnam at the U.N., Dinh Ba Thi, who con. .trolled this espionage operation, was expelled. American officials believe that Vietnamese agents are planted among the flood of boat people arriving in the U.S. from Southeast Asia. There are also reports of espionage activities among other refugee groups. Miami police say that Cuba's intelligence agen- cy-DGI-is active in the South Florida exile com- munity of nearly 750,000 Latins. The FBI report- edly has discovered Soviet agents among Jewish emigres leaving Russia. Several have been "doubled," or persuaded to work as counterspies. Although American counterespionage agencies concen- trate on the Communist-bloc threats, they also are con- cerned about the wide-ranging operations of intelligence agencies of friendly nations. A Senate Foreign Relations subcommittee chaired by Senator George McGovern (D-S.D.) reports evidence of brutality and even political murder by agents of authoritar- ian regimes such as Chile, and Iran under the Shah. One active espionage agency that McGovern's panel and other U.S. officials have been reluctant to discuss, at least publicly: Israel's Mossad. A former U.S. official recalls that Israel's spies once obtained secret American reports on Arab military strengths. During the 1970s, FBI agents re- ceived much of their information on possible Arab terror- ists from Israel's officials based in New York. Some U.S. in- telligence agencies suspect Mossad was behind the disappearance of bomb-grade uranium from an Apollo, Pa., nuclear facility during the 1960s. Israel denies any role in that incident, which remains unsolved. American agents speak of Mossad with awe, and its net- work of contacts within the official circles of Washington is unsurpassed. Mused one counterintelligence expert: "They have no need for blackmail or bribery to get what they want. Over a cup of coffee or a steak dinner, Cod knows what is passed to them." If caution has characterized Israel's operations here, offi- cials who have seen the McGovern panel's report say it out- lines a far different pattern of behavior on the part of other allies or neutralist powers such as Yugoslavia. Dragista Kashikovich, a Serbian emigre editor known for his denunciations of the Tito regime in Belgrade, was shot to death in Chicago two years ago. Senate probers found that the CIA may have had indications he was a target of Yugoslavia's secret service, the UID. But no conclusive link could be uncovered, and the case remains unsolved. . The McGovern study claims that Savak, the Shah's secret police, once plotted the assassination of Nasser Afsher, an American of Iranian origin who infuriated the monarch with his vocal criticisms. Partly because the potential assas- sin got cold feet, the plot was aborted. . . In 1976, former Chilean Ambassador Orlando Letelier was killed in a Washington car bombing, leading to the in- dictment early this year of Manuel Contreras Sepulveda, a former head of Chile's DINA agency. ' - According to the McGovern study, the main goal of allies seems to be to control their own nationals living in this country. Often foreign agents simply monitor students or dissidents living in the U.S., taking photographs and keep- ing track of their movements. McGovern's report claims Taiwan enlisted four prominent Sine-American professors to observe Nationalist Chinese students. The study said that Iran's Savak also maintained an extensive network of in- formers on American campuses. _ At times, the U.S. stumbles across Western European in- telligence services. One case invol? N TO country that ~8? 0 aQA1, J S hoot a diplomat-