LETTER TO THE HONORABLE DANIEL K. INOUYE FROM ANTHONY A. LAPHAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80M00165A002500110033-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: April 5, 2004
• Sequence Number: 33
• Publication Date: February 18, 1977
• Content Type: LETTER

Centr7l Intelli 'cnce : \~encv
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OGC 77-1190
18 February 1977
The Honorable Daniel K. Inouye
Chairman, Select Committee on Intelligence
United States Senate
Washington, D. C. 20510
(kxecutive RO 4 W
Dear Mr. Chairman:
In my letter to you yesterday, I indicated that I would communicate with
you by February 22 concerning the limited partnership interest identified
in the confidential net worth statement furnished the Committee by Admiral
Turner only if my discussions with the Admiral and his personal counsel
indicated that that interest does create a conflict possibility. Notwithstanding
that statement, I am glad to inform you that I have had those conversations
and I am satisfied that that interest does not create a conflict possibility.
Sincerely,
OGC/RHL/lh
Distribution:
Oi g - Addeo
Anthony A. Lapham
General Counsel -
1 - Exec Reg
1 - SUBJ: TURNER, STANSFIELD (ni)'
I - RHL Signer
1 - Chrono
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MEMORANDUM FOR: Admiral Stansfield Turner
FROM: Anthony A. Lapham
General Counsel
OGC 77-1133
17 February 1977
SUBJECT: Certification of Non-Conflict of Interest
I attach a copy of a certification of non-conflict of interest which
I made and forwarded to the Senate Select Committee on Intelligence
today. You will note that I committed myself to further discussions with
cl a
- ---~ --
p any possible problems with
respect to the trust established by your grandmother or tIbe limited
partnership you reported in your net worth statement. We will be in
touch with
Attachment
on this tomorrow.
Anthony A. Lapham
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,2 -/ _ 6, 3'y/Z.
OGC 77-1134
17 February 1977
The Honorable Daniel K. Inouye
Chairman, Select Committee on Intelligence
United States Senate
Washington, D.C. 20510
Dear Mr. Chairman:
In connection with his nomination to be Director of Central Intelligence,
Admiral Stansfield Turner has provided me with a list of securities and
other financial assets owned by him and his wife. Admiral Turner has no
minor children.
All securities owned outright by Admiral or Mrs. Turner will be
transferred to one or more blind trusts . I am advised by Admiral Turner's
personal counsel that the trust instruments are expected to be executed
at an early date and that these instruments will satisfy the criteria des-
cribed by Mr. Lipschutz, Counsel to the President, in a letter of 7 February
to Admiral Turner, a copy of which is enclosed. I will advise you when
that has been accomplished.
As Admiral Turner has indicated in his answers to the Committee
questionnaire, his mother, Wilhelmina Turner, is a beneficiary of a trust
established by his grandmother. We are advised that upon the death of
Wilhelmina Turner, this trust terminates and its assets would be distributed
to either Admiral Turner and his father or, in the event the Admiral's
father has predeceased his mother, then to Admiral Turner alone. Technically,
this situation may not create a possible conflict of interest. However, I am
discussing with the Admiral, and with his personal counsel, steps that
might be taken to either deny to the Admiral, during his term of service
as Director of Central Intelligence, any information as to the securities
held by the trust, or to otherwise eliminate any ponibility of conflict of
interest. Admiral Turner, as the questionnaire ii4'dicates, now knows what
securities the trust holds.
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Admiral Turner also owns the limited partnership interest identified
in the confidential statement (net worth) already provided by the Admiral
to the Committee. I have no reason to believe that this asset creates
any possibility of a conflict of interest: However, I am discussing this
matter with the Admiral and his personal counsel and I will advise you
by 22 February should these discussions indicate that this asset creates
a conflict possibility.
Under the circumstances, it is my opinion that the financial interests
of Admiral Turner and his family create no conflict of interest that would
stand in the way of his nomination to be Director of Central Intelligence.
Sincerely,
STAT
Anthony Lap ham
General Counsel
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THE WHITE HOUSE .
February 7, 1977
Admiral Stansfield Turner, USN
c/o Chief of Naval Operz.tions
Department of Defense
The Pentagon
Washington, D. C.
Dear Admiral Turner:
With further reference to our recent conversations concerning. your
prospective nomination to be Director of the Central Intelligence
Agency, and your expressed interest in avoiding any conflicts
of interest or the appearance thereof, I suggest that you establish a blind trust or security account which is managed on a wholly
discretionary basis by the investment manager.
The blind trust or security account should have the following
features:
1) The trustee or manager should have total.
discretion and the express direction and
authority to sell or buy without discussion.
with you or anyone close to you.
2) The trustee or manager should not disclose to you
at any time during your government service the
identity of any holdings in your account or any
purchases, sales, or other transactions in-
volving your security account or trust. The
only reports which you should receive are the
schedules necessary to file with-income tax
returns, which schedules should not list any-
thing more than totals of taxable items contained
in the trust or security account.
3) The assets transferred to the trustee or manager
should be either cash or diversified assets.
F 3?
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Admiral Stansfield Turner
2/7/77 -- page 2
The establishment of a blind trust or security account of this
nature is the. simplest and most effective way of insulating you
from any present or potential conflicts of interest. Naturally,
you have full discretion to select a bank, investment banking
house or investment counselor of your choice to manage. your
blind trust or security account.
If I can be of further assistance to you with regard to this matter,
please do not hesitate to contact me.
I congratulate you on your nomination to be Director of the
Central Intelligence Agency, and I wish you every success in
the performance of your duties.
I rI
Robert J. Lipshutz
Counsel to the President
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 ~IPMSM;P41CHBW T -
;JNCLASSIFIED C IDENTIAL SEC T
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
1
Exec. Reg.
7E12
,S
4
5
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks :
Original of covering memorandum sent
to or passage to Admiral
Turner and original of letter to Chairman
Inouye sent to OLC for passage to Chairman
Inouye.
FOLD HERE TO RETURN TO SENDER
FROM: NAME. ADDRESS AND PHONE NO.
DATE
AALapham OGC 7DO1
2/18/77
1
Use previous editions
FORM NO. 937
. 11
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SENDER WIL1. CHECK CLASSIFICATION TOP AND BOTTOM
UNCLASSIFIED CONFIDENTIAL SECRET
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
2
------------
3
4
3
6
ACTlox
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COM ENT
FILE
RETURN
COHCIII RENCE
INFORMATION
SIGNATURE
L;
-
Remarks:
Seymour:
Assuming you are still the source of all
wisdom to Admiral Turner, the attached for
him should be given to him as soon as .
possible.
FOLD HERE TO RETURN TO SENDER
FROM- NAME. ADDRESS AND PHOMRE NO.
DATE
UNCLASSIFIED CONFIDENTIAL
SECRET
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