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August 22, 1973
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Approved For Release 2001/111/04: CIA-RDP84-00499Op0QW0050001-9 A2 Tuesday.dug.28,1973 THE WASHINGTON POST Eby Plans Changes n CI.. Ev~luatom Unit By Laurence Stern Washington Post Staff Writer Acting Central Intelligence Agency Director William E. Colby has acknowledged that "some changes will occur" in operations of the agency's top- level evaluative body, the Of- fice of National Estimates. But he maintained that the office's highly refined and prestigious product, the Na- tional Intelligence Estimate, will continue to be produced under the aegis of the CIA as it has for the past two dec- ades. Colby's assurance was con- veyed internally through the CIA's employee bulletin in re- sponse to an Aug.,_l9 news story asserting that he had made a "firm decision" to abolish the office. The National Intelligence Estimate (known among prac- titioners as "the NIE") is the U.S. intelligence community's most classified and senior- level assessment on major in- ternational issues. It has been relied upon by presidents for guidance on a variety of mat- ters, such as Soviet missile ca- pability and Vietnam war pro- spects. There have been growing in- dications within the past year that influential members of the Nixon administration, no- tably Secretary of State-desig- nate Henry A. Kissinger and Defense Secretary James Schlesinger, were unhappy with the CIA's strategic intel- ligence estimates. During Schlesinger's direc- torship of the CIA early this year he was reported to bave initiated action to overhaul the Office of National Esti- mates, with the endorsement of the White House. Colby. is currently working out the de- tails of the high-level Intelli- gence reorganization. The notice to CIA employ. ees issued with Colby's author- ization alluded to news re- ports suggesting that senior administration officials were disillusioned with the National Intelligence Estimates and that the CIA was under attack from the administration "for having failed to produce the kind of intelligence estimates that would support its poli- cies." It asserted that the NIEs would continue to be pub- lished and that "the objectiv- ity of the National Intelli- gence Estimates will be sus- tained" However, the "structure" of the Office of National Esti- mates Is under review, the bul- letin said, and some changes would occur. "The goal is to JAMES It. SCHLESINGER WILLIAM E. COLBY ... former and current CIA chiefs involved in changes. conserve resources and main- tain efficiency by combining the production of National In- telligence estimates with cer- tain other agency and intelli- gence ,community functions," the bulletin said, without further elaboration. The fate of the office has important symbolic, if not practical, consequences in the intelligence community. The stratetgic estimates of the CIA were criticized from within the administration for their pessimism on the Viet- nam War, (an assessment cor- roborated by history), for un- derestimating Soviet military buildups, for failing to predict the intensity of the North Vietnamese 1972 spring of. fensive. Although there was no open criticism of the CIA by admin. istration officials, there was a steady dribble of anonymous though official displeasure with the CIA's performance in news stories and partiularly in the syndicated columns of Jo- seph Alsop last February. Also last April the former deputy director of the Penta- gon's Defense Intelligence Agency, Gen. Daniel O. Gra- ham, called publicly for the reassertion of the military's "traditional" role over civilian analysts in strategic intelli- gence assessments. A month after Graham's ar- ticle was published, with pre- sumed official clearance, he was assigned to the CIA as an aide to Schlesinger with re- sponsibility for the military component of national intelli- gence estimating. Because of the sensitivity of the agency and ultra-secrecy of the subject matter: with which it deals, officials are re- luctant to speak out openly on' the quiet but intense bureau- cratic drama now taking place in the upper, echelons of the CIA. Within the agency's old-boy network, which felt the impact of Schlesinger's cost-efficiency policies while he commanded the CIA,. the rumored aboli- tion of the Office of National' Estimates is regarded as a se- rious blow to the independ- ence and integrity of the intel- ligence-estimating process. Schlesinger is known to have viewed the intelligence !products of the CIA's career analysts as verbose in style and dubious in content.. He did wield the executive firing broom more vigorously than any director in the agency's history, and his policies were viewed with dismay by the hierarchy of old-timers who had operated together since World War II days as alumni of the wartime Office of Stra- tegic Services. Colby is now the man in the middle. His ties are to the old boys through his life-time as- sociation with the CIA. His re- sponsibility is to the adminis- tration, which seems deter mined to purge their influ- ence, starting last year with the dismissal of Helms. That is why, rightly or wrongly, the final decision on the Office of National Esti- mates is being watched keenly by both sides,. Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 ) .s l' Yu ~~ t2 7 . / 9 7 3 Approved For Releaee 2001/12/04: CIA'RDP84-00499R000200050001-9 henry Kissinger Joseph Atsop ? Mr". Nixon s New Line-U13 Of Advisers James Schlesinger. In the present instance, President Nixon has always shown high personal confidence In his new Secretary of William Colby publicans in 1972 tuld have elected an ogre with a long record of cannibal- ism-provided the ogre Just wore a small American flag in his buttonhole. There is no sign at all, as yet, that the dominant group in the Democratic Party has learned anything at all from the results of their follies. On the con- trary, they seem to be Watergate- drunk, in the Senate particularly. Meanwhile, the President, again be- cause of Watergate, has lost most of his former muscle, at any rate in the crucial areas of foreign and defense policy. State-designate, Dr. Kissinger and his new Secretary of Defense, Dr. James Schlesinger. The difficulty used to be that such men commanded no confi- dence,at all from the President's chief advisors, back in what may be called;!' the Haldeman Ehrlichman-Mitchell era. Or maybe it would be more correct to say, that in the pre-Watergate era, the President's immediate entourage wanted as few persons as possible in key posts in government who did not It is ironical, but it is true, that Pres- appear to be easily controllable by per- Ident Nixon owes the Watergate horror sons like themselves. Sometimes they for the best-staffed administration he were deluded, as when they did not op- i has ever had. No one seems to have're- pose Dr. Schlesinger's appointment to. yet it is another major the CIA, or Elliot Richardson's earlier marked upon it , point growing out of Dr. Henry A. Kis? choice for the Defense Department. singer's promotion to the State Depart- But Richardson as Attorney General ment. would never have met with the old The development is not unprece- crowd's approval; and he is more dented. In the last couple of years of equipped to lead the Justice Depart- the Eisenhower administration, the ment than the Defense Department. President was ill, aging and a lame With Schlesinger at Defense and Wil- duck. Ile could no longer recruit the liam Colby replacing him at the CIA, real, roaring tenth raters from the one can predict the President has ac- business world whom he overwhelm- quired two more star performers for ingly preferred. People like "Engine two tremendous jobs. Charlie" Wilson would no longer give As for Dr. Kissinger's long overdue a passing thought to leaving General appointment, it was a change bitterly Motors, in order to become Secretary opposed within the pre-Watergate of Defense. White House, mainly for rather sordid So at the end, President Eisenhower reasons. As for the Watergate-gencr- had to be content with a Secretary of, ated improvement in the White House State, Christian Herter, whom he ac- itself, it hardly needs, discussion. But tively disliked, and a Secretary of De- there is one political point about all fense, Thomas Gates, with whom he this that makes the President's quite basically disagreed. They were men of undesired gain from the Watergate real ability and strong national-mind- horror worth a lot of thinking about. edness. And they prevented the close Briefly, the Nixon administration of the Eisenhower administration from used to rely on muscle to get what 't istration getting its way on Capitol becoming a real disaster, although the wanted. The liberal Democrats, in second Berlin crisis plainly threatened turn, generously provided most of the Hill. Indeed, if the country 'begins to a disaster. fa on allies in the Sena Approved For Rele MJU a~~nbP114 tF4~059R0~~i all aides. - Iioiination or t e presidency of ' . In just these areas, the Democratic leaders in the Senate, particularly, are now hoping to have an easy field-day. But they have not noticed some facts of great importance. In these areas, to begin with, the President now has- and for the first time-a united team ~ capable of talking to the country. One thinks of the first Truman ad- ministration in this connection. The Nixon-haters, now, are hardly more vi- olent than the Truman-haters, then. President Nixon's popularity has yet to drop quite so far as president Tru- man's all-time low. Yet a balky Senate was still forced to accept the great Truman initiatives in the foreign and defense fields, because the country was persuaded by the Marshalls, the Achesons, the Forrestals and the Lovetts. As yet, the Nixon administration has no potential ally on Capitol Hill of the calibre of that half-comical, half-;treat man, Sen. Arthur H. Vandenberg, to whom this republic owes an immense, forgotten debt. But if the new Nixon team also proves able to persuade the country, you will see the Nixon admin- . Sen. George McGovern. With this kind , E 01079 ? A?+?l?? Time. of help from the Democrats, the Re-:;.n Approved For Release 2001/12/04: CIA-RDP84-00499RQ00200050001-9 A-12 1 WASHINGTON STAR-NEWS ' Washington, D. C., Sunday, August 19, 1973 By Oswald Johnston been stirred by revelations Star-News Staff Writer of the Watergate case to In a decision with major , take a. closer look at CIA implications for the national operations than ever before. security, the Nixon adminis- The National Intelligence tration has ordered a radi-' Estimates, generally re- cal overhaul of the Central ferred to as NIEs, probably Intelligence Agency's meth- helped the CIA regain some od of analyzing and evaluat- public trust in recent years. ing foreign intelligence. As revealed by the Penta- According to authorita-. gon Papers, CIA estimates tive sources in the ' in'telli- of the Vietnam war set forth gence community, William unpleasant facts, when the E. Colby, the newly in- Pentagon was stilltlaiming stalled CIA director, has reached `a "firm decision" to abolish the Office of Na- tional Estimates, the elite, 30-man office that since 1950 has prepared the top secret and definitive National In- telligence Estimates, the papers on which a succes- sion of presidents has based crucial policy decisions. - John W. Iiuizenga, the agency's Director of Na- tional Estimates and, as chairman of the Board of National Estimates chief of the CIA's intelligence ana- lysts, resigned from the agency at the end of June. Ile will not be replaced. THE decision to abolish the Office of National Esti- mates has not been an- nounced. It is certain to provoke a reaction -in Con- gress, which has already a military victory was pos- sible. Early in the Nixon admin- istration, CIA analysts prq- duced estimates that ran counter to White House wishes during the bitter po- litical debate over the anti- ballistic missile. Partly because of these controversies, NIEs came to be distrusted and ignored in the latter part of the Johnson administration and through almost the whole Nixon period. President Nixon is known to have become personally disenchanted with the CIA performance during the ABM controversy, and it is an open secret that his-na- tional security adviser, Henry A. Kissinger, has tended to deride and disre- gard NIEs since he joined the administration. See CIA, A-12 Il '/1iC- !PAZ Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved For Release 2001/11/64: CIA-RDP84-00499RQ00200050001-9 Iligence Overhaul Continued From Page A-1 The decision to abolish the Office of National Esti- mates is certain to revive speculation that the CIA is under attack from the ad- ministration for having failed to produce the kind of intelligence estimates that would support its policies. White House dissatisfac- tion with the CIA is general- ly believed by sources close to the .agency and to the administration to have been a major factor in the resig- nation of Richard M. Helms as CIA director shortly aft-. er Nixon's re-election last year. Colby's move to eliminate the office that has been re- sponsible for the most re- fined product of the govern- ment's multi-billion dollar' intelligence gathering effort shows that he clearly in- tends to carry out the sweeping changes in the agency undertaken. by, his immediate predecessor as director, James R. Schlesin- ger. BEFORE Schlesinger moved over to the Pentagon as Defense secretary during the administration's Water- gate shakeup last May, he had ordered a "sweeping cutback in personnel. It was done in the name of efficien- cy, but older agency profes- sionals denounced it as "brutal," and the purge swept from high-ranking posts in the CIA- virtually every officer there who had been close to Helms. At the same time, Schles- inger brought into the agen- cy, Maj. Gen. Daniel O. Graham, a controversial Pentagon intelligence ana- lyst who has openly advo- cated stripping the CIA of its authority to analyze mili- board had responsibility for tary strategics intelligence their preparation. and giving that function to; Under a later chairman, the Defense Department. Sherman Kent, the board At this time, Graham was and its staff developed the given a managerial func- system of carefully graded tion, but observers thought verbal measures of certain- it likely that he would some ty that still characterizes day move into the intelli- , NIEs. "Apparent" is the, gence estimating field. most tentative and "almost It is not clear how much certain" the most definite of the decision to abolish the short of a flat assertion- of Office of National Esti- fact. The grades in between mates is Schlesinger's and' ' are "possible," "suggest- how much Colby's. ed" and "probable." It is also not clear what This verbal precision was . Colby has in mind to re- apparently infuriating to place the Office of National recent administrations. The 'Estimates. Sources close to -White House, even before the director insist that there the Schlesinger reorganiza- is no plan to make the NIEs tion of November 1971, sent directly subservient to the word it wanted "facts, not policy-makers in the White opinions," according to one House. published account. ? ? ? ? ? ? ? WHEN the 1971 plan was THE Office of National announced, it was reported Estimates was first orga- as aiming for an intelli- nized early in the Korean gence product better tai- War, when the American lored to the wants of its intelligence apparatus was "consumers" in the White still in its formative stage. House. And when Schlesin- ger became CIA director, Its first director,'Harvard' he made it known that NIEs historian William Langer, would be more useful if they set up the dual structure were "four pages instead of that still exists: The 10-man 40." Board ` of National Esti- According to one anec- mates and the 20-man Na- dote current in circles close -tional Estimates staff, to the agency, Schlesinger which cahried out the re- confronted his first meeting search and collated reports with the Board of National from intelligence gathering Estimates with the observa- channels in the CIA and tion: "I understand this is elsewhere in the govern- like a gentleman's club.: ment. Well, I want you to under- The estimates, about 50 a stand that I am no gentle- year, were prepared almost man." as though they were schol- The appointment of Col- arly dissertations on a vari- by, a career professional in ety of subjects requested by the CIA, brought sighs of the National Security Coun- relief at all levels of the cil. They were a consensus agency. But the abolition of of the whole U.S. intelli- the Office of National Esti- gence comn(tunity, with dis- mates, its elite board and cents carefully registered in, its -staff, suggests the sighs footnotes, but the 10-man may have been premature. Approved For Release 2001/12/04 : -CIA-RDP84-00499R000200050001-9 Approved For Release 2001/12/04: CIA-RDP84-00499000200050001-9 m 7t and i-1 -M T WASinr 6TON N_.vUQLD NOYSS, fdifof WEDNESDAY, MAY 23, 1973 \j U L11 1~_~ y MARY McGRORY Star-News Staff Writer tin an anonymous letter sent to his only pal in the White House in December, James McCord wrote pro- phetically, "Every tree in the forest will fall." When McCord, the amia- ble old spook, left the stand of the Ervin commit- tee, he left a ravaged land- scape behind him. So grip- ping, outlandish and un- shakeable had been his tales of life in the Nixon campaign committee that the President at the end of the day popped out with a statement warning all in- vestigators to have a care for "national security." In his accusations about the President's sinister i and design to turn the' CIA into a cloak for the Watergate operation, McCord had been corrobo- rated by no less a person- and 44/100 percent of what McCord had spilled was true. Caulfield was anoth- er interesting case. A man eaten alive by ambition, he was ever on the watch for advancement in admin- 7s'rreta'turi us-gaIUt .; -Umews and his ego was wounded by John Mitchell who treated him as "only a bodyguards." Caulfield s .T ^htly laun- dered McCord's version of what he had told him dur- ing one of their renczvous: McCord said Caulfield arned him, "You know if the administration gets its back to the wall it will have to take steps to de- fend itself." Caulfield scrubbed it up a bit to read: "Jim, I have worked!. with these people and I know them to be as tough-minded as you and itself." Caulfield scrubbed it up.l a bit to read: mini, I have. worked with these people and I know them to be as tough-minded as you and I." They weren't saints, ei- ther of them, but they are believable. And Richard :A col d orsRel&Me 2001/12/04: CIA-RDP84-00,499ROO2O0O5cOO*9of conscience sufficiently to apeople like McCord a'nd don t',e blue surr.ical Cau.fiv d, because t11:' is WASHINGTON, D.C. NATIONAL OBSX_pproved For Rele@Ae 2001/12/04: CIA-RDP84-00499R0002D0050001-9 WEEKLY -- 524,212 MAY 19 1973 New Bosses at Defense and CIA, In the shake-up of his Administration forced by the Watergate scandal, Presi- dent Nixon has fallen back on men he knows and can trust with a variety of assignments. The first of these all-pur- pose men to emerge was Elliot Richard- son, Nixon's Attorney General-designate. The second man for all seasons to sur- face in round two of the President's re- organizational musical chairs is James R. Schlesinger, whom Nixon has asked to move from his post as director of the Central Intelligence Agency (CIA) to re- place Richardson as Secretary of Defense. At the same time, Nixon nominated William E. Colby, a career CIA man, to succeed Schlesinger as CIA director. The Defense appointment will be the fourth major Administration job Schles- inger has held in the four years of Nixon's Presidency. A Harvard-trained economist, he served as deputy director of the Of- fice of Management and Budget (OMB), as chairman of the Atomic Energy Com- mission (AEC), and for the past three months as head of the CIA. In his four years of Government service he has built a reputation as a boat rocker who loves to rattle the bureaucracy. Goody-by to the 'Old Boys' Though his tenure was short, the ca- reer men at CIA were less than heart- broken to see him leave. Schlesinger first attracted Ni,on's attention in 1971 with a study of the CIA that called for extensive reorganization, a shift in intelligence em- phasis to reflect changes in the Cold War, and extensive retirements of many of the CIA's "old boy" network, meii who have been with the agency since it was founded after World War II. Schlesingcr's mandate was to carry out these recommendations, and he had set to the task with intelligence and de- terlninai.ion--some say ruthlessness. He had begun the largest personnel cutback in CIA history-eliminating possibly as many ns 1,800 jobs in the 18,000-man agency. His policies at the Pentagon have not been similarly outlined in advance be- cause of inc suddenness of Nixon's Cabi- net switc:ies, but people who know Schles- iricer say that he has coveted the top De- tatty in=n at the I'er,tnrron find little Comfort in predic- tions that he will ap- plY efficiency and cost-ac 001)tinq t.ech- niques to t-, intrudIr.'ed by ixohert MN ainnra, i3ec:refrtry of Defense utcder John P. lfen- nedy and Lyndon ,1ohns,;n. 't'hey are a I :: c apprehensive because of his rec- ord at OMB, where he forced through bil- lions of dollars in defense-spending cuts. No Ideological Interference "He won't be as naive as McNamara about the effectiveness of computer analysis, but he'll operate in the same vein," says one man who has worked with Schlesinger. "He was director of strategic studies at the RAND Corp., con- centrated on strategic analysis at OMB, and his experience at the AEC is not un- related to the new job. He won't be bowled over by generals with ribbons on their chests." A conservative Republican politically, Schlesinger's admirers contend that he has never let ideology interfere with his search for rational solutions. He is cred- ited with changing the AEC from a pror moter to a regulator of atomic energy At the CIA he came across to the career men as a tough guy with a Mc Namara=ty &=( i fn "" 6, whom efficiency was everything. A lot of the complaints about him revolve a,'ound the firings and forced retirements. Agency men concede that there was an "age hump". because of the large number of CIA employes now approaching retirement age, but some contend that Schlesinger lacked "com- passion" in making the cuts. His sup- porters scoff at this as bureaucratic non- sense. "He's really a relaxed, low-key guy tinder the tough exterior," says one. "He has an irreverent sense of humor, and he likes staff members who will raise questions that aren't supposed to be raised and who will argue with him." The CIA career men, however, prefer to take their chances that Colby, as one of them, will carry out the reorganization with more regard to feelings. Colby was graduated from Princeton in 1940 and is typical of the Ivy Leaguers who formed the backbone of the CIA from its begin- nings. Since March 3 he has been the CIA's deputy director of operations, head of the "department of dirty tricks," and he has done this sort of work during most of his agency career. lie was the CIA's Saigon station chief in the early 1960s and helped organize mercenaries and counterterror programs such as the controversial "Op- eration Phoenix," a campaign of assassi- nation of Viet Cong cadre. ~pl~'dtY, ,4r Relea Approved For RelQAse 2001/12/04: CIA-RDP84-00499R009200050001-9 KNui:viLLE, TENN. NEWS-SENTINEI E - 107,137 S - 156,422 MAY 518731 Out in the Cold JAMES R. SCHLESINGER, headmaster of the Central i...- tell igence Agency (CIA says he has.- eo many overaged spies, and he wants authority to retire more of them at age 50,. Normally we'd say right on!, for who likes to think of some arthritic old boy skulking about with nothing between him and some miasmic Vienra,.,sewer but a trench coat and soitf~-z11la bare Cold War convic- tions? But reason prevails. If Watergate teaches nothing else, surely it must persuade us to the nonwisdom of having too many ex-CIA types around with time on their hands. Keep them on the leash, say we. Put them to work bugging the ta= bles at Monte Carlo, if necessary. Assign any number to do an in- depth analysis of the Gross National Product of Liechtenstein. Let them search out and identify the surviv- ing heirs of the late King, Zog. Anything. But let Heaven forefend that CIA would turn them out in the cold with nothing but idle time and all that nefarious expertise. Give them spooky busy work, if it comes to that, but keep them away from the temptations of free-lancing. J IIS/HC- &'6 3. Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 PITTS3URGH, PA. PRESS 1, ,A-AY 1 I , 1 ved For Re a 2001/12/04: CIA-RDP84-00499R00 00050001-9 E - 346,090 1+ - 744,732 L'3,rs Iiv RICHARD SI'ARNE'S Scripps-Iloward Staff Writer WASHINGTON - Those in and around government who have tried to peer beyond the rubble of the Watergate, scandals may take some measure of comforIL in Presideut Nixon's deci- sion to shift Central Intel- ligence Agency t(,l irector James R. Schhcsingcr to head the Defense Department. The appointment opens a yawning gap at the top of CIA that has only partially been plugged by Nixon's designa- tion of a little-known career intelligence officer to head that agency. 13ut to those who have been in utteringdarkly that the most dangerous aftershock of Watergate may be in erosion of the governrr,ent's credibility abroad, Schlessinger's nomi- nation will surely be welcome. Good Record In a city littered with fallen idols, Schlesinger has a track record as a tough, respected administrator with a broad- gauge understanding of the pitfalls that abound in direct- ing agencies on which the very survival of the nation might depend. When Schlesinger left the Atomic Energy Commission (AEC) to head CIA last De- ccnrber, one admiring AEC 1 colleague described his dc- parting boss as "A very strong character, strong voice, strong jaw, very firm in his opinions. "They will learn at CIA that he is always the boss. Ile does not become emotional about things, but he does get what he wants." patch that stunned old hands creature comforts that go with at the agency, high office, a positive antipa- Cut Jobs thy toward this city's inces- He abolished jobs - esti- sant cocktail bashes, and a mates vary from 1,000 to 1,800 fine disregard f cherished -that he found too grown up bureaucratic folkways." in moss to be effective. Those who have monitored He directed a high level his winter of shaking the CIA shakeup of management, and by the scruff note that the lie quickly convinced skeptics description remains valid. that he could carry out Presi- dent Nixon's mandate to bring Historians who h a v e ob- cost-effectiveness to the na- served the r a p a c i t y with bon's $6 million-a-year intelli- which the Pentagon often con- gence apparatus. sumes the men sent to control Although reductions in force it will watch with lively inter- (c a 11 e d RIFs in govern- est the epic confrontation he- mentese) are more or less tween'the new secretary of routine calamities in other defense-designate and one of agencies, they had been un- the world's most willful bur- known in pre-Schlesinger CIA. eaucracies. "RIFs," noted one retired spy- One clue on how the decision master, "have hitherto been may go is contained in a story considered security risks." told of Schlesinger s in o r t l y But in spite of the muted after he took over AEC in howling from CIA's vast Lan- September, 1971. g I e y, Va., headquarters, Colonel Clipped Schlesinger in a d e his cuts A colonel, borrov. d from stick the Army to help AEC with a some of the capital's more notable stuffed shirts. Schlesinger is 44 lie was born in New York City and was graduated summa cunt laude from Harvard in 1950. He won a doctor's degree in eco- nomics, married a Radcliffe girl (as did Elliot L. Richard- son, his predecessor as secre- tary of defense) and taught at the University of Virginia. Wrote Book His book, "The Political Economy of National Securi- ty," won him the attention of the Rand Corp., a California think tank. His first govern- ment job was with the budget bureau in 1969. He despises loud TV, a cro- chet'which creates some ten- sions in the Schlesinger house- hold where there are eight children. Until he became AEC chair- man and inherited a limousine and driver, he happily tooled lie also moved quickly to thorny technical problepl.,.4).- end the training CIA had been peared in Schlesinger's office offering local police depart- laden with charts, graphs and ments throughout the country, a vocabulary redolent. of the an activity critics said was at more obscure reaches of the. odds with the law that forbids military bureaucracy. the agency to dabble in (to- ",Just cut out the Pentagon mestic concerns. baloney," S c h l e s i n g e r The CIA's new b r o 0 m growled, "and give me the (whose record as a mover and facts." shaker may now be causing On disquiet at the Pcnta- n another occasion Schies- gon) also abolished the posi- lager disarmed critics of the tion of executive director of Amchitka Island nuclear test the agency and appointed its blast who claimed it. would erstwhile occupant, 53-year-old triger tidal waves and earth- William E. Colby, as director quakes by arriving on the test of clandestine operations. site with his wife and two of his daughters. The test went Up Moves off without a hitch. Yesterday the White house announced that Colby would Schlesinger gets along with he named to replace Schesin- reporters. He is also an ger as CIA director. compiished bird-watcher In his fnur montlas at CIA, At the time of his nomina- guitarist. ac- and around Washington in a 1964 Ford Falcon, a dispirited con- veyance he proudly told friends had a blue book value of $30. Schlesinger has proved that tion to head CIA, one observer hi the latter role he accom- asscssmeiat %,,, r o t c: "Schlesinger, whose panics h i in s elfin singing Ile spent two months stud?Y ascendancy in the capital's batii?dy songs of his own com- in the sprawling intelligence constellation of power has oc- po~;ition ?- ballads (hat are apparatus aria then moved curred with dizzying speed, said frequently to deal with into c ',ApproveU or* Rel se\2001/12/04 Approved For R lease 2001/12/04: CIA-RDP84-004998 00200050001 9 James R. Schlesinger: To the'Pentago>ni ? , Fat JAY ~1 S t4 !q?'~ Impatie act-Finder. By Stuart Auerbach print on the CIA. He took Washington Poet Staff writer the job as CIA director with Pentagon briefers have a a mandate ' from President .shock coming when James Nixon to clean out dead R. Schlesinger takes over as wood and to end the bicker- Secretary of Defense: he ing between the nation's in- 'hates the chart and slide tellfgence agenices. shows that military men 'Schlesinger worked . so love to use to make their hard at. the assignment ework nt othat ne points. when he came "Let's cut out that Penta- day with a east on his right gon baloney," he once told a hand a story went around retired Air Force colonel, the agency that he had bro- "Just give me the facts." ken it pounding on his desk.' That's Schlesinger in a ` The new director com- nutshell: abrupt, impatient plained to Congress that the with superficial trappings CIA Is overloaded with over- and searching for facts; a age spies recruited during Cold man who knows the value of theuble adlWar twho o have using shock tactics while usting today's trying to gain control of a more peaceful world. He be- sprawling federal agency. gan 'pushing Sally retire- ,. In his four years and ' ment for some 1 and has three months yin government `started reducing the CIA's -almost the length of the 15,000 employees by at least Nixon administration- .10 per cent. Schlesinger has been shak. Moreover, he was ap- ing up the establishment'. palled by some of the Mic In 16 months as chairman key Mouse supersecrecy at of the Atomic Energy Com- "the agency." mission he reorganized and ' He ordered , switchboard transformed it from a pro= operators to answer calls motor of nuclear power to a with' "Central Intelligence " Employees now an- regulator of the . atomic in,. Agency. dustry. And then, before he swer the phone with their left for the Central Intelli-' names ' or office identifica- gence Agency, he persuaded ? tions (such as Vietnam d f m rel re. e y t i ' ea o ns Desk) President Nixon to pick an. other maverick, Dixy Lee peating the extension num- Ray, as the new AEC chair- ber. I man. Schlesinger also has. or- During the past four dered the removal of signs months he has put, his itn- identifying' the CIA' head= quarters at 'Langley as a highway research station. He ordered new ones say- ing, "Central Intelligence Agency, Langley, Va.," in- stalled. Earlier this week he brought a display of candor rare to CIA directors when he admitted to a congres- sional committee that CIA assistance in a burglary at- tempt on the office of. Dan- iel Ellsherg's psychiatrist was "ill advised." He pointed out three times however, that it occurred while Richard Helms was di- rector. This didn't endear Schle- singer to the "old boy" net- work in the CIA. report, he was personally re- sponsible for trimming $6 billion from the Pentagon budget. "He had the hammer on the defense guys for more than a year," recalls a high- ranking Nixon 'aide. "He's made very few friends in ,the Pentagon." Nevertheless, Schlesinger indicated recently that the era of cutting defense spending should end. In a little-noticed speech deliv- ered last September when he was still AEC chairman, Schlesinger said: "I am firmly persuaded that the time has come, if it has not 'already passed,.to call a halt to the self-defeat- .One CIA veteran com-_ ing game of cutting defense mented yesterday that outlays . . . It Is an illusion "there wasn't a' wet eye in the place" when 'word got out. that Schlesinger was moving to the Pentagon. He will not be among friends whe}'i he moves to the Pentagon either.. During his two years with the Bu- reau of the Budget and its successor agency, the Office of Management and Budget, Schlesinger was an overseer of the Defense Department's money requests. He had a reputation for insisting that better management ' could save defense dollars. In the Nixon administra tion's first year, his friends to believe that we can main- tain defense forces adequate for our treaty obligations to, say, NATO and Japan, with sharp' curtailment in de- fense expenditures suppos- edly directed only to waste and duplication." Schlesinger first came to President Nixon's attention through his work as assist- ant director of OMB, when he headed a survey team that in 1971 evaluated the nation's intelligence net- work. The report recom- mended the sweeping re- forms that Schlesinger was eventually to undertake. proved For Release 2001/12/04 CIA=RDP84-00499R000200050001-9 Approved For R&ease 2001/12/04: CIA-RDP84=00499RQ O200050001-9 The Weather Today-Cloudy, high in 70s, low in low 50s. The chance of rain is 50 per cent today an 20 per cent to- night. Saturday-Cloudy, high 'in upper 60s. Temp. range: Yesterday, 82-54; Today, 73-53. Details, Page C6. 96th Year ? ? ? ? No. 157 01973, The- Washington Post Co. Part-tine Presidential Adviser' . DefeMpft6%ffpor Release d04 2 I CIA-RDP8'Ae6d' @OVW00S0(f9r1-9perations, to succeed By Carroll Kilpatrick Wa&hinston Post Staff Writer In a major administra- tion reshuffle forced by Watergate disclosures, President Nixon yester- day named CIA director James R. Schlesinger Secretary of Defense and former Treasury Secre- tary John B. Connally a part-time presidential ad- viser. Mr. Nixon said he will nominate William E. Colby, the C e n t r a l Intelligence JAMES R. SCIHLE$INGER WILLIAM E. COLBY JOHN B. -CONNALLY Agency's deputy director Schlesinger. FRIDAY, Nixon' Staff Approved For lease 2001/12/04: CIA-RDP84-00499RQ90200050001-9 , 108 Pages-4 Sections Amusements B12 Metro Classified C12 Obituaries Comics D18 Outdoors Editorials A30 Religion Fed: Diary -D19 Sports Financial D1Z Style Gardens B18 TV-Radio Classified 223-6200 Circulation 223-5100 l5c Beyond Washington. IN Oe Maryland and Virginia 1 Approved For Release 2001/12/04: CIA:RDP84-004998000200050001-9 Approved For Release 2001/12/04: CIA-RDP84-00499RQp0200050001-9 From the Defense Depart- ment, the President tapped J. Fred Buzhardt Jr., the Pentagon's general counsel, to be special counsel to the president to handle all ,Wa tergate matters affecting the White House. Yesterday's shift of posi- tions was the second major one in less than two weeks. On April 30, the President announced the resignations of 11. R. (Bob) Haldeman, .John D. Ehrlichman and John W. Dean III from the White House staff and of Richard G. Kleindienst as Attorney General. That day, the President moved Elliot L. Richardson from Secretary of Defense to the post of Attorney Gen- eral. Richardson, former S rotary of llealth, Educa- The Watergate II tion and Welfare, had been Former Attorney General John N. Mitchell and for- at the Pentagon only, since Feb. 1. Like Richrdson, mer Commerce Secretary Maurice Stans were indicted Schlesinger' had just taken in New York yesterday on charges of lying to a federal over the CIA directorship in grand jury and obstructing justice by interfering with a February, after serving as government investigation. New Jersey politician Harry chairman of the Atomic En- Sears and financier Robert Vesco were indicted in the ergy Commission. same case. The President also told his Cabinet yesterday, at a In Washington, the White House announced another meeting attended by both major shakeup in the management of the government- Connally that Schleo more di- CIA Director James Schlesinger was nominated for See- that there would be more di- personal eem rotary of Defense; William Colby, a career CIA man, do Mr. t.ins with each member. . Mr. was nominated as his successor; Texan John B. Connally Nixon said he was ending accepted a part-time job as a presidential adviser; De- the "super - Cabinet' ar- fense Department Counsel Fred Buzhardt was shifted to ranacment. in which three the White House as a special counsel. At the same time, Cabinet officers had broad- three "super-Cabinet" posts were abolished. ened responsibility, and acted as counselors to the There were new disclosures in Los Angeles at the President, press secretary Pentagon' papers trial of Daniel Eilsberg. Some of his Ronald L.'Ziegler reported. conversations, the government disclosed, were inter- The three who revert to cepted from a; phone tap-in place more than a year- regular Cabinet Cabinet status are at the home of a former high government official,-Mor- Department pthe Trans- Trans 'Cas-- ton Halperin. Arguments to dismiss the case against Ells- Ja totiT.on Lynn por par par W. Weinberger of berg will be heard today. Health, Education and Wel- Hugh V. Sloan Jr., treasurer of President Nixon's' re ec creLtary, ary, of of election campaign, disclosed in a deposition that he had Agrigri and culture. Earl Secretary, A I- White House and his superiors last year that t e the Treasury George P. warned - i taro h' tidded cam al n officials may have been involved in the Water kir Approv &t blv ease j1~/04ga P84-00499R000200050001-9 See PRESIDENT, AIZ, o Garment will be In CIllll~~~~ Chief ]''iire1 charge of preparing legisla- tion the President h a s promised to guard against future corruption in politi- said, an andd campaigns, all Ziegler other Def ense Secretai'y ~[[JJJJ duties of a W hite House PRESIDENT, From Al assignment as the President. counsel. extent to which the . Garment was named act- President has been shaken out of old habits. Reports on Capitol Hill In yesterday's actions, the President followed a pattern he set earlier in reorganiz- ing his administration in the wake of the Watergate dis- closures and the resulting resignations. He turned to (old and trusted advisers in- stead of going outside. However, informed sources said' t h a t the President emphasized in the Cab- inet meeting and in a meet- ing with Republican con- gressional leaders that he would move outside that close' circle in future ap- pointments. In the past, a criticism in Congress, among Cabinet of- ficers and from the press was that presidential aides Haldeman and Ehrlichman erected a "Berlin wall" around the President, shielding him from critics and friends alike. Mr. Nixon reportedly promised to enlarge and strengthen the White House legislative staff under Wil- liam E. Timmons and to make himself more fre- quently available to mem- bers of Congress. The Cabi- net departments were in- structed to strengthen their legislative liaison as well and to seek Capitol Hill con- tacts on a bipartisan basis. Mr. Nixon also promised a decentralization of authority away from the White House and to the Cabinet depart- ments. With Gen. Alexander M. lfaig Jr. now the White House staff chief instead of Haldeman, there will be a different approach, with more reliance on the estab- lished bureaucracy, more freedom for departments to be true executors of policy and with new pledges to spread rather than to 'con- tract authority. Whether the new prom-, 'i that he is considering bring- ng Secretary of State Wil- liam P. Rogers into the White House and making national security adviser Henry A. Kissinger Secretary of State were denied by an official spokesman. Connally, w h o recently switched to the Republican Party, will serve without pay and will have no opera- tional responsibilities, Zieg- ler said. Connally will make himself available on a part- time ) basis whenever the President wishes to consult him, the press secretary ex- plained. The rest of his time Con- nally will devote to his law practice in Houston. Zieg- ler insisted that there would be no conflict of interest between Connally's public and private life. In answer to questions, Ziegler. said the President. could consult anyone he wishes, but that be was sure he would not consult Con- parture from the post last week. The new Secretary of De- fense-designate, taught eco- nomics at the University of Virginia and was a senior member of the Rand Corp. before joining the govern- men' in 1969. While an as- sistant director of the, Of- fice of Management and Budget, a report he pre- pared caught the President's attention. From OMB,. Schlesinger, moved to the chairmanship of the AEC and more recently to the CIA. His successor at the CIA, Colby, has spent three dec- ades in intelligence, starting with the Office of Strategic Services in World War II. He served as first secretary of the U.S. embassy in Sai. gon .from 1959 .to 1962 and then. he returned to Wash- ington as chief of the CIA's Far East division. In 1968, he went back to Vietnam and took over the pacifica. tion program unt}l June of nally on oil' problems, for Buzhardt practiced law in example, since 'Connallyy's South Carolina before com- law firm represents oil in. ing to Washington in 1961, terests., where he worked for eight They will consult "on a' years on the staff of' Sen.. broad range of mattes," for. Strom Thurmond. He joined eign as well as domestic, but the Defense Department in the President does not ex- 1969. pest to give Connally speci- fic operational assignments, Ziegler said. "I am sure the President and Governor Connally: would in any discussion eliminate anything . that would involve conflict of interest," Ziegler main- tained. While the Connally and Buzhardt appointments are,. for an interim period, Zieg- ler indicated they may last' months rather than weeks. The exact lines of author- ity between special counsel Buzhardt and acting pres- idential, counsel Leonard, . Garment were not spelled ises will be carried out r& out iii the Ziegler announce- mains to be seen, but the ment, but both appear to change In intentions reflects have some responsib'lity In Approved For ReleaWet tI1 ~rCIA RDP84-00499R000200050001-9 Buzhardt has the major re- sponsibility. Approved For FWease 20.01/12/04: CIA-RDP84-004990200050001-9 Approved`r Release 2001/12/04: CIA-RDP84-009R000200050001-9 . BY GARNETT D. HORNER Star-News Staff Writer President Nixon today moved James R. Schlesinger from his relatively new job as director of the Central Intelligence Agency to the Pentagon as secretary of defense. At the same time, the President nominated William E. Colby, deputy CIA director for op- erations, to replace Schlesinger as head of the agency. In other announcements today, the Presi- dent named: ? J. Fred Buzhardt, general counsel of the Defense Department, as special counsel on his White House staff to work in the area of the Watergate investigation. S. John B. Connally, recent Republican con- HS/HC?g~~ Approved For Release 2001/12/04: CIA-RDP84-004998000200050001-9 Approved?pr Release 2001/12/04: CIA-RDP84-0Qa,99R000200050001-9 vert, as a part-time, unpaid special consultant to advise him on a wide range of national af- fairs. Schlesinger, the former chairman of the Atomic Energy Commission, who replaced Richard Helms as CIA director earlier this year, will succeed Elliot R. Richardson as de- fense secretary. . White House Press Secretary Ronald L. Ziegler said Buzhardt also will be active in helping form legislation to reform) campaign procedures. Ziegler said the President told his Cabinet that he, now intends to have direct lines of communication to. all of them, and is dropping See Appoint, Page A-6 J. FRED BUZHARDT Approved For Release 2001/12/04: CIA-RDP84-00499.R000200050001-9 Approvedpr Release 2001/12/04: CIA-RDP84-OQ09R000200050001;9 A-6 X THE Wathkwcn DA CTA 1yR and r DAILY May 70, 1973 APPOINT %; sona oz ' Lick Continued From Page A-1 the special counselor set-up he announced ear- her this year. Secretary of Agriculature Earl L. Butz, HEW secretary Caspar Weinberger, and HUD Secretary James T. Lynn had been given the additional title of counselors to the President, with responsibility for coordinating overlap- ping functions of some cabinet departments in their areas. Ziegler said they would drop the titles of counselor, and the special set-up would be "moved aside," pending congressional actions on Nixon's proposals for consolidating several departments. He said the President told his Cabinet that coordination of overlapping functions must continue, but he now wants to do so on an infor- mal basis. Richardson, who took over the Pentagon helm from Melvin R. Laird less than three months ago, was nominated by the President last week to replace resigning Richard" G. Kleindienst as attorney general. THE OFFICIAL word that Buzhardt will be working in the area of the Watergate inves- tigation may indicate that he will relieve Gar- ment of that duty, leaving Garment free to ful- fill the general functions of counsel to the Pres- ident as his legal adviser. Buzhardt, 49, was an administrative assist- ant to Sen. Strom Thurmond, R-S.C., from 1958 to 1966. A native of South Carolina, he is a West Point graduate and received a law degree from the University of South Carolina in 1952. Schlesinger, 44, earned his bachelor degree at Harvard, summa cum laude, in 1950, his, master degree in 1952 and his Ph. D. in 1956. He taught eco- nomics at the University of Virginia for eight years. He joined the Rand corpo- ration in 1963, where he was a senior staff member and later director of stra- tegic studies. HE JOINED THE gov- ernment as assistant director of the Budget Bureau in 1969, and kept that title when it became the Office of Management and Budget the following year. He was named chair- man of the Atomic Energy mmis io C i 1971 d o s n n , an took over the CIA in Feb- ruary of this year.. He is the author of "The Political Economy of Na- tional Security" (:1960) and co-author of "Issues in Defense Economics" (1967). A Republican and a Lutheran, Schlesinger is married and has eight children. The family resi- dence is in North Arling- ton. David Packard, former deputy defense" secretary, and West Coast electronics millionaire who was de- scribed a week ago as the "leading candidate" for the post, has told the White House that he is not available for the job. Colby, 53, an alumnus of the office of Strategic Services, twice parachut- ed behind enemy lines dur- ing World War II - in France and Norway - to ;carry out sabotage opera- tions against the Germans. After the war, he joined the New York law firm headed by his former OSS boss, Maj. Gen-. William (Wild Bill) Donovan. When the Korean War broke out, Colby joined the CIA, and served, in the guise of a Foreign Service Officer, in Stockholm, Rome and Saigon. I THE SUDDEN elevation of Colby from deputy director of clandestine ,,operations to director of Central Intelligence ,means that a long-time !CIA professional in the imold of ousted director Richard M. Helms is once ,again in charge. "It will be good for the agency," Approved For Release 2001/12/04: CIA=RDP84-00499R000200050001-9 Approver Release 2001/12/04: CIA-RDP84-0W9R000200050001-9 one former CIA operative remarked with a sigh of relief when he heard the news today. And an expe- rienced congressional ob- server of the agency sug- gested that "maybe a calm like this will be use- ful, after the storm that came up under Schlesin- ger." Nixon had appointed Schlesinger to the CIA post with a mandate to clean house, cut costs and, in the view of some dis- gruntled analysts, purge the agency of too optimis- tic a view of Soviet stra- tegic capabilities. Colby, like Helms before him, is a veteran of the operations, rather than the intelligence side of the agency, and he survived Schlesinger's houseclean- ing of the CIA "old boy I, network" even while Schlesinger was proclaim- ing an intention to cut back on undercover opera- tions and concentrate more resources on more efficient gathering and evaluation of intelligence data. COLBY IS a veteran of the CIA side of the Viet- nam war, and was station chief in Saigon as long ago as 1959. He is most widely known as the architect of the American-run rural pacification, or Phoenix, program in South Vietnam in the mid-to-late 1960's - an elaborate and partly successful countrywide network of counterintel- ligence, propaganda and political assassination. Such credentials could give Colby trouble from Senate doves during his confirmation hearing, but CIA professionals are more likely to take it in stride. In his part-time special consultant role, Connally will act as an advisor to the President on both for- eign and domestic policy. Connally attended a Cabi- net meeting at the White House this morning. . Meanwhile, the Senate today confirmed the nomi- nation of Howard H. Calla- way of Georgia to be Sec- retary of the Army. Also confirmed was Robert C. Hill of New Hampshire to be an assist- ant secretary of defense. DEPUTY Defense Sec- retary William P. Clem- ents Jr. told newmen at the Pentagon today that he would continue to serve as Schlesinger's deputy. He said Schlesinger is "excited" about the per- sonnel choices already made at the Pentagon by himself and Richardson. With Clements at the brief session in the Penta- gon press room was David Packard, who served as deputy defense secretary for the first three years of the Nixon administration. Packard was Nixon's first choice to replace Richard- son but he said he had de- cided he could not take the job However, Packard said he had agreed to serve as a consultant to Schlesinger and Clements and to help them in getting defense proposals approved on Capitol Hill. He said he intended first to look closely at some of the major programs - he mentioned the B1 bomber and the Trident submarine - and then to testify be- fore congressional com- mittees, meet with mem- bers of committees or con- tact individual congress- men. PACKARD said he was delighted with the choice of Schlesinger for the de- fense job and confident that he and Clements would "make a good team." Leonard Garment, a long-time utility man on the Nixon staff as a spe- cial consultant, will carry . on as acting counsel to the President, the White House said. Garment has taken over the duties of ousted counsel John W. Dean III. Buzhardt's inter- im appointment will re- lieve him of duties pertain- ing to the Watergate inves- tigation. Approved For Release 2001/12/04.: CIA=RDP84-00499R000200050001-9 Approved For lease 2001/12/0.4: CIA-RDP84-004990D0200050001;.9 THE EVENING STAR and DAILY NEWS Washington, D. C., Wadnasday, May Z 1973 CIA Chief Wants .,.,More Spry Spies TS/HC-,62 united Press tnternatumm them have been in the govern- Old age has hit the spy busi- ment more than 20 years. As a result of this ness. "disproportionately high" The bright young men from, percentage, top positions in Harvard and Yale who en- the CIA are clogged up, and tered the newly formed Cen- young, promising personnel tral Intelligence Agency after have been quitting because of World War II have become the lack of advancement op- bright old men, and CIA portunity. Director James Schlesinger "Our says they must give way to problem is that unlike another generation. the State Department, partment, unlike of an edited version of the Department of Defense, there has been no selection- closed-session testimony re- out system," Schlesinger leased yesterday. by the Sen- said. "It has been assumed ate Armed Services Commit- that people have come in and tee, Schlesinger estimated de facto they have stayed that 70 percent of the executives are now around as long as they have agency's wanted. As a result, we have over 45, and 85 percent of an aging staff." Schlesinger, who took over the top CIA job this year, has + been engaged in an extensive overhauling of the agency and hundreds of CIA officials have lost their jobs. Many have come flocking to Capitol Hill and the government bureauc- racy looking for work. Schlesinger denied that the ,;; shakeup would diminish the CIA's role and lead to domina , tion by the Defense'.= Department's intelligence gathering agencies. The April 5 hearing was on a bill, since passed by. Con- gress and now before Presi- dent Nixon, to increase the ceiling on annual CIA retire- ments from 800 to 2,100. Schlesinger said the intelli- gence community was "not desigl'fed to provide cushy positions for time servers"' Approved,1e~s;;2'0Q/12/04 : CIA-RDP84=00499Rt400200050001-9 Approve Fffiwg~ 2F~D001-9 _W .L I;w " WaENCIES ARE BEING SHAKEN UP Drastic changes are aimed at ending rivalries and improving the usefulness of U. S. intelli- gence. One result: Some inner workings are being disclosed. The supersecret U. S. intelligence ap- paratus is being rocked from within on a scale never before so visible to the public. What set off the tremor is a major overhaul, now in progress, of the ma- chinery that produces the worldwide intelligence assessments on which crucial national decisions are based. Under James R. Schlesinger, the new Director of the Central Intelligence Agency and overseer, also, of the vast U. S. information-gathering network-mil- itary as well as civilian-significant changes are being made. They have these objectives: ? To shake up the whole system and sharply improve its usefulness to the President and his top advisers. ? To process vital intelligence more effectively, at less cost. Mr. Schlesinger cracked down on CIA, his home base, first. Now he is expected to focus on other parts of the intelligence community-military and civilian. Payroll reductions. In the reorga- nization process, wholesale firings have occurred at the CIA-a cutback, sources say, of perhaps more than 1,000 of the agency's estimated 15,000 employes. Some professionals assert that Mr. Schlesinger is bent on rooting out an "intellectually arrogant" clique that has been riding high in the CIA hierarchy for years. Others counter that the chief purpose of the housecleanings is to enable the Nixon Administration to "politicize" the intelligence mechanism to its own ideo- logical shape-and use Mr. Schlesinger to do it. Both charges are vigorously denied by responsible people on all sides. In- stead, the charges are cited as examples of the bitter bureaucratic infighting go- ing on in Washington-and spreading into the intelligence system. On one front, heated feuding between the CIA and the Pentagon's Defense In- telligence Agency-DIA-is out in the open. James Schlesinger, Director Of Central Intelligence, presides over the U. S. Intelligence Board, which sets intelligence requirements and priorities. Represented on the board are- `JU'i;f' Central Intelligence Agency, top-secret Government organization, responsible only to the White House, collects and evaluates intelligence information, runs clandestine missions abroad, conducts espionage and counterespionage. --Appro d For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 tl`, /HC- -6 ~ U.S. NEWS & WORLD REPORT, May 7, Pentagon intelligence specialists, trying to regain control of assessing military threats to the U. S., are citing what they characterize as examples pf blunders and bias by the CIA. The military critics admit that their own mistakes a decade and more ago obliged the Government to turn to the civilian CIA for the main assessments on military threats. But now, the mili- tary men contend that DIA has been revamped, is more objective-and less of a lobby designed to scare Congress into voting higher defense budgets. Against that background of turbu- lence, Mr. Schlesinger is moving to carry out the sweeping reorganization of the U. S. intelligence community orig- inally ordered by President Nixon a year and a half ago-in November, 1971. Knowledgeable sources say that Rich- ard Helms, now Ambassador to Iran, was replaced by Mr. Schlesinger as CIA Director because he failed to carry out the overhaul mandate to Mr. Nixon':; satisfaction. A top man in the intelligence network put it this way: "The President and his national-security adviser, Henry Kis- sltttlet', just didn't think they wore getting their money's worth." The reorganization plan, in fact, is Mr. Schlesinger's own handiwork. He drafted it while serving as Assistant Director of the ' Office of Management and Budget. Later, he was named Chairman of the Atomic Energy Com- mission-the job from which he was transferred to his present post as Amer- ica's "superspy." Like Mr. Helms before him, Mr. Schlesinger is not only Director of the CIA but also Director of Central Intel- ligence-DCI. That makes him boss of all American intelligence operations. New faces. One thing that Mr. Schlesinger has done is to put together what he calls the intelligence communi- ty staff, with offices on the top floor of the CIA headquarters building in a Virginia suburb of Washington. Significantly, two military-intelligence THE U.S. INTELLIGENCE NEBV OAK AND iio rce, the aide who blocked 000, erroneous estimate "won CIA Director James R. Schlesinger, who oversees all U. S. intelligence, desig- nated two military men among deputies. experts have been assigned to that staff as Mr. Schlesinger's deputies. One is Maj. Gen. Lew Allen, of the Air Force, who has been nominated for promotion to lieutenant general. The other is Maj. Gen. Daniel O. Graham, of the Army, a career intelligence officer. General Graham, who has been dep- uty director for estimates in the Penta- gon's DIA, sounded a call in an article he wrote recently for "Army" magazine advocating reassertion of a dominant role for the military in estimating security threats. May 1 was set as the date of his move to Mr. Schlesinger's staff. As the shake-up of the intelligence establishment continues, charges and countercharges are giving Americans a rare look at its inner workings and hot rivalries. For example- s Military men are alleging that "bi- as" of top-level CIA evaluators colors final estimates sent on to the President and his aides. One case cited by a critic of the CIA: "An estimate entitled 'New Order in Brazil' was prepared as a basis for QQ Defense Intelligence Agency, coordinating intelligence efforts of Army, Navy and Air Force, assesses armed forces and weapons of friend ,god 1,i - N Maj. Gen. Daniel Graham policy decisions. Use of the term `New Order' in the title was like overprinting a Nazi swastika on the cover. It paint- ed the blackest possible picture of the present Brazilian .Government, making Brazil look like an imminent threat to the U. S. If the President had acted on that report, he would have cut all aid to Brazil." ? The CIA is accused of failing to use information it had in hand to alert the White House to Russia's acute food shortage last year. The point made is that the Soviets were able to negotiate a billion-dollar grain deal with the U. S. on terms favorable to the Krem- lin-and unfavorable to the American housewife, who had to pay more for bread. The CIA answers this charge by con= tending that the information was passed along to the Department of Agriculture, which, in the CIA view, failed to act on it promptly enough. ? A military intelligence official says that before the Soviet invasion of Czech- oslovakia in 1968, the CIA director of estimates offered a report prepared for the President saying there would be no invasion. An aide, disagreeing, used various stratagems to avoid forwarding the report. The delay prevented embar- rassment for the CIA when the Russians did invade, but, according to the National Security Agency codes and ;'. decodes U. S. messages, breaks foreign codes, monitors foreign communications, conducts electronic sur/Cillance. IN State Department's Bureau of Intelligence and Research makes sure final intelligence estimates take account of political and economic trends abroad. no friends." ? In Vietnam, it is now revealed, CIA and DIA were often at odds. For instance, they agreed that some Com- munist arms were reaching South Vietnam through the Cambodian port of Sihanouk- ville, but both were "wildly wrong" on how much. But an official, not in intelligence, recalls that CIA was "much further wrong" than DIA-al- though each was on the low side. ? Another charge by critics of the CIA: After the Tet offensive of 1968, CIA reported Communists had seized vast portions of the countryside, because contact was lost with most sources out- side the cities. This assumption was dis- proved by on-the-spot checks by DIA teams in helicopters. An' illustration of conflict between civilian and military analysts: In a recent national estimate, the CIA took the position that Japan would never consider arming itself with nuclear weapons. The DIA argued that the Jap- anese were keeping abreast of nuclear technology and would not hesitate to "go nuclear" if Tokyo felt that was necessary for survival. When the document was brought to Mr. Schlesinger, an insider says, the CIA analysts emphasized that they had put their views first, as the current position, and the DIA estimates were relegated to the back pages. Mr. Schles- inger was said to have,"hit the roof" and to have ordered that the military view be given equal prominence. ? General Graham, in his writing in "Army" magazine, admits serious DIA shortcomings in the past. He charges that Pentagon intelligence has damaged its own status by inflating its estimates of threats to the "worst case" possible- (continued on next page) Atomic Energy Commission detects and monitors nuclear tests by other countries, gathers information on their nuclear criahilitics, Fl Federal Bureau of Investigation conducts counterespionage within sabotige, In addition, Trea r91jpAfn%rtZ9dt ;W t BIIQ`Tt - INi #'A M0aRqQfi9PQ&Atries. Copyright ( 1973, U. S. News & World Report, Inc. reorganization. A com- 4. -Each agency is to he luii~' ment typical of this vi,---,- aware of what all the others are doing. CI P! P84- 0499R 200050@b1t-9xperts are combing through -a----------?- -~ ~+~~ . .....n Atirw to use that those who seek to fewer men and spend less money. present intelligence as it "To be continued." Some projects is rasher ? 4-b h an as t e srtlaa- tion is seen by those sup- porting specific policies, are being plucked out." Aides of Mr. Schlesinger deny that he has any inten- tion of "politicizing" the agency. They point out that at his confirmation hearing before the Senate Armed Services Commit- tee he said he was deter- mined to maintain the in- dependence and integrity of intelligence evaluations. Within the Nixon Ad- Overhaul of U. S. intelligence network is creating ten- sion at CIA's massive headquarters near Washington. "SPY" SHAKE-UP [continued from preceding page] in order to get more money from Con- gress. He claims that this tendency has been largely eliminated. a General Graham also charges that, in the past, military intelligence has been too prone to tailor its assessments to the need "users" have for intelli- gence that "supports the program." Assessing blame. In some instances, blame is being heaped upon both civil- ian and military intelligence agencies. One thing pointed out is that the entire U. S. intelligence community-despite warnings from some agents-refused to believe that Soviet boss Nikita Khrush- chev would dare to risk putting offen- sive missiles in Cuba in 1962. Khrushchev did just that, however, and the "missile crisis" resulted. Some of the military intelligence ex- perts now insisting on a stronger voice in the evaluation of raw data concede that, in the past, the armed forces have been supplied with exaggerated esti- mates of the Soviet threat-such as the "missile gap" of a decade ago that turned out to be nonexistent. It is pointed out, however, that the DIA has had a thorough housecleaning in recent years. "Time to reassert." In his article for "Army" magazine, General Graham wrote: " . I think the time is ripe for the military profession to reassert its tradi- tional role in the function of describing military threats to national security. Both the military user and the military pro- ducer of strategic intelligence have come a long way since the `missile gap' days. DIA has hit its stride in the pro- duction of respectable military esti- " mates. Many CIA middle ranks ministration, dissatisfaction with the CIA has centered particularly in the Na- tional Security Council staff, which is under the direction of Mr. Kissinger. The main complaint has been that evaluations of raw intelligence often re- flected the biases of top men. To that, one CIA man retorts: "We feel that we do a better job of evaluating. raw intelligence without bias than the military does-or, for that mat- ter, than people like Kissinger who are defending a specific policy." The argument is made that-particu- larly since the days when the late Allen Dulles was its Director-the CIA's "con- trolling voice" in the intelligence com- munity has sought intelligence estimates unaffected by the policies of the Ad- ministration in power, the Pentagon, the so-called military-industrial complex, or any other group. Changes in the works. Whatever the merits of the arguments now boil- ing, drastic changes are being made by Mr. Schlesinger. They include: 1. To reduce costs, overlapping intel- ligence agencies are to submit "bids" on operations that are assigned by President Nixon and the National Security Conn.. cil. The Intelligence Resources Advisory Committee, set up under the 1971 re- organization plan, is to consider the competing "bids" and accept the least: expensive if the bidder can convince the Committee that his agency can do the job. 2. Mr. Schlesinger is making it clear that he will exercise fully his authority over all of the intelligence services. In the past, this has been a difficult prob- lem for the Director of Central Intelligence, because the Defense De- 1971. partment gets most of the money and Thus, a money crunch and diminished most of the manpower. manpower are added problems at a time 3. As DCI, Mr. Schlesinger will de- of sharp change and open conflict for tide which of the U. S. intelligence agen- th i h " e agenc es w ich function as the eyes professionals in top and cies-military and civilian-will carry out and ears" of the United States around are unhappy about the operations s igr dd b the~7h' Approved For Release 001/1/U4 : IA- 2 134- 644 ' 000 001-9 (END] U. S. NEWS & WORLD REPORT, May 7, 1973 are being phased out as inefficient or outmoded. One report indicated a sharp curtailment in clandestine operations. But an insider commented: "They may not talk about these as much as they did, but like it or not, these activities are part of the way of life in the world today, and they will be continued." One revision put into effect. by Mr. Schlesinger has to do with preparation of CIA reports requested by the Presi- dent and other high officials. Condensed intelligence. Previously, such requests were answered with de- tailed studies-20, 30, or even 50 pages long. Now, the reports run no longer than three double-spaced pages. A CIA official explained; "Instructions from Schlesinger are to answer the questions asked-and no more. No background. No historical dis- cussion. Just keep in mind that the President or the Secretary of the Treas- ury or whoever else asks the questions is a busy man. He rarely has time to read long reports. What he needs is for use right now-today-in order to make a decision." The telephone number of the analyst or working group responsible for the re-' port appears on the document, so if more information is needed, it can be obtained without delay. In line with Mr. Nixon's efforts to re- duce federal spending, the intelligence agencies are under orders to reduce costs. Just how much is being spent to piece together the information essential to na- tional security is not a matter of public knowledge. A 6.2 billion cost? Senator William Proxmire (Dem.), of Wisconsin, esti- mated recently that the cost of gather- ing military and civilian intelligence is 6.2 billion dollars a year. But Albert C. Hall, Assistant Defense Secretary for Intelligence, said that Mr. Proxmire's figure is "just plain wrong." Without hinting at the actual figures, Mr. Hall said that the Pentagon's intel-' ligence budget has been cut by about a third in the last three years. Other sources say that manpower in the CIA and the other intelligence serv- ices, including the National Security Agency, now totals less than 125,000- a reduction of more than 25,000 since .Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 `AGING' OF STAFF N. Y. ~'~ , , , za7 1973 Spies Are Too' Old and Too A C.I.A. PROBLEM Numerous, Director Says in February,- Mr. Schlesinger has begun a major reorganiza- tion of intelligence activities, including the largest personnel cutback in the history of the agency. From his testimony, which provided the first official explanation of his plans for personnel reorganization, it is apparent that one of Mr. Schles- inger's major objective Is to weed out over-age spies through retirement. Mr. Schlesinger disclosed that in recent years the intelli- gence agency had reduced its "overseas population," with some of the , agents absorbed into the headquarters staff and others retired. But, he said, it still has "too many people in . larly as it turns increasingly to technological means, such as satellites, for obtaining intelli- gence information. This surplus of operatives, he problem of the agency's clan- destine service. "We are facing a very severe hump in age com- position" between 1970 and 1980, he said. Immediately after World War Ir, in its formative years, the intelligence agency engaged in an extensive recruitment" pro- gram, particularly on Ivy League campuses. Most of those post- war recruits are now reaching the age of 50 or more but show little desire to leave the agency. The agency's problem, Mr. Schlesinger said, is that, unlike the military or foreign service, it has no system for "selecting out" agents as they move up in seniority. "It has been assumed that people come in and do facto they have stayed around as long as. they wanted,". he said. "As a result, we have an aging month in support of legisliition that would raise from 830 to ',signed to provide cushy posi-I tions for time-servers." Suggestions that some of the spies have come to look upon have "stayed around as long as they, have wanted." As a result, he said, "we have an aging staff" in the agency's; destine overseas operations .Senate Armed Services Com- mittee, Is that agents in clan and too numerous. The difficulty, ho explained In recent testimony before the tral Intelligence Agency is'that its spies are.becoming too old By JOHN W. FINNEY Special to The New York Tdma , ? -WASHINGTON, May, I - James R. Schlesinger, the Di- ,rector of Central Intelligence, has told Congress that a malor of the rare-occasions when the testimony of a Central intelli- ence Director has been pub shed. Approved For Release Promotions Delayed As compared with the rest of the Government, the director said, the intelligence agency has a disproportionately old staff. For example, he said, about 70 per cent of the agency's employes in executive grade positions are over, 45, compared with about 50 per cent in other Government agencies. Mr. Schlesinger attributed some of the agency's morale problems to the overlay of older agents, with the resulting "re- duced opportunity for younger people."' In the early days of the agency, he said, a person .could expect to acquire execu- tive responsibilities b5 age 48 but now he must wait until age 55. Consequently, he said, "we had a movement out of some of our younger people whom we would like to retain in order to build for 20 years ahead." Mr. Schlesinger acknowl- edged that his personnel re- organization and reductions had caused morale problems and criticism within the agency. But he suggested that this reaction should be bal- anced against the morale prob. lems of persons who left the agency "because they saw In. sufficient opportunity, partly because they did not believe that the agency was vigorous enough, that it had become a tired bureaucracy." NEW YQRK DAILY NEWS 19 APR 1913: ey MAXINE CHE ,SHj tE The ('1.1 mad' now harp vtronic eavesdroppers but its r' Phone bill is lower. When James Schlesinger Jr. took v o er as director, the first thing he did was rent long. distance lines on a monthly basis from the telephone company because calls "are way Schlesingerp found some hls spies. so.fearful?of being overheard that the ? f 3 Pre erred tIAE! out to,a phone booth 9 7 4 1 Approved For Release. 2001/12/04.:?CiA-'RDP84i00499R000.200050001-9 Approved For fA-R4U3499RQ(g200050001-9 In Hong Kong, an agent of the U.S. Central Intelligence Agency slips into a railroad yard and checks the wear on ball bearings of freight cars coming in from China to try to spot unusual troop movements. Meanwhile, another agent goes to the /long Kong central market and buys a large order of call's liver from animals raised in China to run a lab test for radioactive fallout. In Eastern Europe, a CIA team tries to obtain a sample of a Communist par- ty chief's urine. Purpose: to determine his state of health. The ('IA did this suc- cessfully with Egypt's lute King Narouk but failed recently with Yugoslavia's President Tito. ''`l-I ESE are only a few of myriad mis- LI lions that the CIA has performed around the world. The agency is also constantly accused of fantastic James Bondian exploits that more often than not it has nothing to do with The fact is that no nation can any longer accept Secretary of State Henry Stimson's bland dictum of 1929 that "gentlemen do not read other people's mail." In a nuclear-ringed globe, intelligence is more vital than ever. Nor can a world power automatically limit itself to such a passive role as mere information gath- ering; trying to influence events may at times be necessary. But it can no long- cr be done with the crudity and arro- gance displayed in the Bay of Pigs in- vasion of 1961, or the attempt with the International Telephone and Telegraph Corp. to sow economic chaos in Chile in 1970. To harness the CIA's excesses and yet utilize its immense capabilities for keeping the U.S. abreast of world de- velopments, the Nixon Administration has ordered the greatest reorganization in the agency's 25-year history. Cooperate. Reports TIME's Diplo- matic Editor Jerrold Schecter, who has been keeping a watch on the CIA: "For the first time since its founding the CIA is undergoing a thorough shakeup of personnel and redirection of mission. The two main targets of U.S. intelli- gencc activities continue to be the So- vict Union and China. But a rapidly dc- veloping detente with those countries has created different demands on the in- telligence establishment. Along with traditional estimates of the missile and military capabilities of Communist countries, the White House is insisting on a new emphasis on assessments of their political and strategic intentions. cess is being refined to include more stress on such developments as Soviet and Chinese grain outputs and comput- er advances." To chart this new direction; Pres- ident Nixon has turned to a tweedy, T38/HC_ftlp roved For@fieJt09`'}e'~yi1,`-00499R000200050001-9 TIME, APRIL30, 1973 Approved -warnings of-and curbing-interna- i. For Re AR) QQ 1ZQ41iek iA DRia4ma64a9F 0 0Q050001-9 ,v^~, - n 7 11 ,~ in February took over as director of the CIA. Aides quote Schlesinger as saying that "the entire intelligence community can produce a better product with a low- er level of resources." In short, the na- tion's spy network should generate bet- ter intelligence for less money. Schlesinger has ordered the firing or forced retirement of 600 of the CIA's 18,000 worldwide employees; 400 more are expected to go by year's end. His aim is to Cut costs, eliminate marginal performers, and change the leadership of the agency. Among those who have gone are several of the long-entrenched top deputies of former CIA Director Richard I iclms, who tended to favor the "operational men," or spies in the field, over the cerebral analysts, who ponder the intelligence and make policy rec- omniendations. These two sides of the agency, traditionally separated, have or- ders to cooperate more. Paramilitary operations are being scaled clown. In South Viet Nam, the CIA's role in the "Phoenix"-or coun- terterror-program has already been phased out. The program used CIA agents to advise the South Vietnamese in the "neutralization," or killing, of Viet Cong officials. Such covert activ- ities are under the CIA's deputy direc- tor of operations, currently William Colby, 53, a former ambassador who was in charge of pacification in Viet Nam from 1969 to mid-1971. Often called the agency's "dirty tricks department," Colby's section con- trols field agents who are involved in clandestine activities, including keeping a watch on the KGB (Soviet intelligence) and working with intelligence organi- zations in Western countries. But Col- by's group is now placing new empha- sis on such activities as getting early traffic. Through intercepts of commu- nications, the CIA has discovered who ordered the killing of the U.S. and Belgian diplomats in Khartoum two months ago. It also knows the financial sources of the Black Septembrists, who carried out those assassinations, as well as the murders of Israeli athletes at the Munich Olympics. Rivalry. With the downgrading of cloak-and-dagger operations, one of Schlesinger's tasks will be the strength- ening of the "leadership for the [intel- ligencel community as a whole," a rec- ommendation that he himself urged on the President in 1971, when he was an assistant director of the Office of Man- agement and Budget. Now, Schlesinger not only heads the CIA but also has ul- timate responsibility for the Pentagon's Defense Intelligence Agency, which provides intelligence for the armed forces, and the National Security Agen- cy, which directs spy planes, satellites and a vast communications-monitoring apparatus that cracks codes and gath- ers data from other countries. Schlesinger, as chairman of the In- telligence Resources Advisory Commit- tee, will be taking a hard look at the combined $6.2 -billion (sonic estimates put it as high as $8 billion) spent by the three agencicys. Nearly half of the mon- ey goes for sa;Te;litc reconnaissance and spy planes; about $750 million is bud- geted to the CIA'. Schlesinger also must watch out for a smoldering rivalry between the CIA and the Din. The rivalry broke out in the open recently in the form of an ar- ticle in the small (circ. 75,000) month- ly magazine Army, written by Major General Daniel O. Graham last Decem- ber-before he was picked by Schle- singer to be a member of his five-man Intelligence Resources Advisory Com- mittee. Graham's article contended that the Pentagon should win back from the /fiCCA v*my CIA primary responsibility for analyzing strategic mili- tary intelligence. 'To the en-- barrassment of military lead- ers, he conceded that in the past the Pentagon's estimates of Communist military po- tential were vastly overstat- ed, and that the nation's de- cision makers rightly regard- ed those estimates as "self- serving, budget-oriented and generally inflated." But, he wrote, the Pentagon has so greatly reformed and im- proved its analysis in recent years that there will be no more "bad overestimates" like "bomber gaps," "missile gaps," and "megaton gaps." Aided by Graham, who Schlesinger hopes to improve CIA hand: "The trouble with this place relations with the Pentagon. is that it has been run like a gentleman's -.1:..4 ..1+1,. 'h 1.-1...--1 , . r,__ - ---_.. _ CIA DIRECTOR JAMES R. SCHLESINGER Inducing constructive tensions. Helms, CIA analysts had remained aloof from the military, and there were bit- ter battles between the CIA and DIA dur- ing the Viet Nam War over estimates of enemy infiltration and intentions. To increase accountability within the agency, Schlesinger has told CIA's analysts to sign all their intelligence reports. He hopes . that bylines on the blue and white-covered CIA assess- ments will sharpen analyses and make the authors feel personally responsible for their assessments. Schlesinger seems just the man to shake up the.CIA. A seasoned scholar, bureaucrat and Republican, he enjoys the confidence of President Nixon. He was graduated sumina cum laude from Harvard ('50), later got his Ph.D. in eco- nomics there, taught at the University of Virginia, and was director of stra- tegic studies at the Rand Corp. He joined the old Bureau of the Budget in 1969, and two years later was named chairman of the Atomic Energy Com- mission. His prodding of utility exec- utives to pay more attention to envi- ronmental safeguards impressed the President. When industry leaders complained, Schlesinger told them: "Gentlemen, I'm not here to protect your triple-A bond ratings." While maintaining traditional secre- cy about clandestine operations, Schle- singer is moving fast to lift the veil of conspiracy that has shrouded the agen- cy. In an unprecedented move last month, he allowed a CIA agent, William Broc, the former chief of clandestine operations for the Western Hemisphere, to testify before a Senate subcommittee investigating the involvement of the CIA and the International Telephone and Telegraph Corp. in Chilean political affairs. As tough-minded as he is candid, Schlesinger leaves little doubt that he L~"5fi*1'li?recently to an old A.26 . THE EVENING STAR and DAILY NEWS Washington, D. C, V ' '-vsday, April 11, 1973 rroved For Reltwe 2 Ii4-RDPB&? 00499R00A200050001-9 ouo~ur ^ By ORR KELLY Star-News Staff Writer ^.fiaiiies R. Schlesinger, they 'hcw, director of Central Intel- ltlence; is giving the military stronger role in assessing, threats posed by other coup- ttie's;. 'according to the Pentagon's top civilian intelli-, gence official. ".'Albert C. Hall, assistant' dcfer(se secretary for intelli; gence, acknowledged in -)in- tervitw yesterday that ' ome of the, civilians up the river" fpt the Central Intelligence Agency) are quite concerned by the new development. "13ut Hall,, who was brought 'into .the Pentagon by Defense $ecretary Melvin R. Laird two-years ago to,strengthens ?lvili{tn control over intelli- gonce, said he thinks what Schlesinger is doing "is really. quite sound.". ';SCIILESINGER, who drew up a plan for revamping the intelligence community when he was at the office of Man- agement and Budget in 1971, . has 'placed two career Sol- diers iets on his personal staff. -Maj. Gen. Lew Allen, a West Pointer who holds a doctor's degree in physics and Who, has been active in Air F'orc'e' nuclear and space pro- gramk, became one of Schlesinger's deputies "for, 1I I are involved. He'did say, however, that an estimate by Sen. William Proxmire, D- Wis., that the nation's annual is jus ''plan' ong. PROXMIRE SAID yester- in the ures ware " his fi d g ay Approved j HS/HC- a Z., I intelligence bill is $6.2 billion the military intelligence oper- ation, Hall said. "I. have told the DCI (Schlesinger) what we are doing, what our objectives- are, and how we are going about researching them in a broad sense and he's en- dorsed them," Hall said. THE DIA, the key Pentagon intelligence office, underwent a house cleaning of its own beginning in 1970, when Lt. Gen. Donald V. Bennett be- came its director. The entire defense intelligence communi- ty has-received a further shaking up under Hall. Over- the years, there has been a tendency to downgrade the military estimate of ` the threat from other countries - side, the other too far on the other side. I don't want to overstate this, because it was not that bad a situation. But it' would be better if they both moved toward the middle," Hall said. WHILE the different inter- pretations seemed to provide a broad range of views, the opposite was often the case, Hall said. Graham, in an arti- cle of the current issue of Army Magazine, said "planners of all services. 'coordinating' an intelligence estimate are quite capable of reducing it to lowest common denominator, mush." The goal now, Hall said, is to recognize that "There real- ly isn't one estimate - that there are ranges of possibili- ties driven by certain circum- stances. "It is important to get the ranges and the circumstances laid out," he said. Unfortunately, he added, many of those who receive the intelligence information would rather have a specific figure than a range of choices. the intelligence community" primarily the Soviet Union - on March 1. He was nominat- and for the civilian analysis of ed yesterday for promotion to `; - the CIA to be predominant, lieutenant general. Maj. Gen. Hall-said. Daniel G. Graham, a career "On the civilian side. - up intelligence office who is now the river - they were more deputy director for estimates ? inclined to regard the Soviet in the Defense Intelligence, Union as a more peaceful ent- Agency, is scheduled to be- ity than it actually is. Their come a deputy to Schlesinger tendency is to regard what May 1. they (the Soviets) do as a While Schlesinger is report- reaction to us," Hall said. edly embarking on a house The military picture tends cleaning to cut about a 1,000 to make the Soviets look like persons from the CIA payroll of about 15,000, he has given his stamp of approval _ at least for the time being to . HALL ALSO STRESSED, throughout the interview, that he is seriously concerned about the nation's intelligence budget. Over the last three years, he said, the Pentagon's intelligence budget has been cut about a third. "We don't have all the things covered at all that we'd like to have covered," he said. "When resources are limited, it is no easy way out of that situation." . Hall, refused to. say how much Nixon spends on intelli- gence or how many people the fierce guys, and that we've got to catch up, he said. In analysis of the Soviet j Union, one was too far on one ballpark" and called on $i00 million; Army Intelli- Schlesinger to mate the, in- gence, 38,500 and $775 million; telligence budget public. ' Navy Intelligence, 10,(00 and He said his estimates of $775 million; Air Force Intelli- manpower and budget are: gence, 60,000 and $2.8 billion CIA, 15,000 and $750 million; (including. satellite launches' National Security Agency, and reconnaissance) ; State .20,000 and $1 billion; Defense Department intelligence, 335 Intelligence Agency, 5,016 and and $g million. or R~ease 2001/12/04CIA-RDP84-00499R0002000i50001-9 Approved Forlie1ease 2001/12/04: CIA-RDP84-00499 0200050001;9.; By CLIFTON DANIEL SpedAt to T1 a Ncw York Tlma 1 ~ ,z .44r~~9y3 [H_~- HC i~~ WASHINGTON, April 1- tary and diplomatic intelligence Under Its ? new director the Central Intelligence Agency is apparently planning, to 'curtail some of 'its old activities, no- tably: clandestine 'military, oper- ations, and undertake some new ones.." These:: include :: action against. political terrorism and the: international drug traffic. Since 'James R. Schlesinger took over as director on Feb. 2 more than 1,000 employes of the C.I.A. have received dis- missal notices. Mr. Schlesinger also has authority from Presi- dent Nixon to apply what one official calls "a great deal of persuasive influence" to reduce manpower as well in the mili- tary intelligence services. These are the, Defense Intelligence Agency and the National Secu- rity Agency, which Mr. Sghle- singer oversees but does not operate. In the last two years',the in- telligence establishment as a whole has. been reduced by something like 25 per cent, ac- cording to reliable estimates. In , 1971 there were. more than 150,000 people `in the mill- Since November, 1971, the vari- ous agencies have been under cation of facilities and func- tions and make more economi- cal use of their resources, es- pecially in-'collecting informa- Intelligence information these lites and computers rather than by spies meeting informers in and some systems have report- edly been made deliberately in- compaltible so that each +agen- cy keeps its own.. For that reason and others it is said here that President Nixon's 1971 memorandum has qs yet had, no measurable ef- fect on the operations of the Continued on page. 7, Column 1 Approved For Release 2001/12/04: CIA=RDP84-00499R0002,00050001-9 t, 41 services and the C.I.A. There are now fewer than 125,000, ac- cording to the estimates--per- Approved For Release 2001/12/04 CIA-RDP84-00499R000200050001-9 . ti C.I.A. MAY CU., . SOME ACTIVITIES Intelligence community. The 'man principally respon. sible for drafting the Presi- dent's memorandum was Mr. `I Schlesinger and the has now fob because as assistant direr- for of the office of Manage- ment Bud et d l an g ater as : j chairman of .the Atomic Ener- reputation for efficiency and effectiveness. ,Apparently Mr. Schlesinger is expected to do in the intel- litence community what other recent Presidential appointees have been instructed to do in more open departments-that is, to make the Federal bu- reaucracymore responsive to the Administration. ~? future our responsibility, or This objective has led topresume to tell the people of charges from some old hands;; other nations how to manage at the C.I.A. that the agency'' their own affairs." Is being "politicized" by the;' That statement seemed tol Nixon Administration. Mr. Schlesinger met this charge, when his C.I.A. appointment was up for confirmation in the Senate, by assuring the Senate Armed Services Committee that he believed absolutely in Main- taining the integrity and inde- pendence of intelligence esti- mates. People who know President 7~- That Discouraging Thud "The thud It makes when It falls on your desk Is enough Apparently C.I.A. memoran- have _ a telephone number to While seeking greater econ- omy and efficiency the intelli- gence community is reassess- ing its tasks. There appears to be a ten- paramilitaryoperations - op- war still being waged in Laos, operations that have some- times brought the agency as much censure as praise. In his second inaugural Ad- dress, President Nixon said, "The time has passed when America will make every oth. !' er nation's conflict our own, i er people's affairs, whether by intelligence agencies or other. wise. In any event, operations such as the one in Laos, where the C.I.A. has long given support and leadership to the anti- C ommunist military forces, are on such a scale that they can- not be conducted secretly, and thus may not be thoughtsuit- Nixon s attitude say he wants his Intelligence information straight even when it is un- palatable. However, the White House does want to see less money spent on intelligence. ucL proviuco. By a better product the White House apparently means among other things a product that answers 'the questions that senior policy makers are inter- ested in and gives the answers in brief and readable form. "You can't drop a 90-page C.I.A. analysis on a high offi- cial's desk and say 'You ve got to read this,' " one such official said recently. able for an undercover agency. r 'Dirty Tricks' Wane Operations on a smaller scale-sometimes called "dirty tricks"-reflect the atmosphere of the nineteen-fifties, the cold war period, and seem to be regarded now as obsolescent. Also with the reduction of international tensions and sus- picions, which is the aim of President Nixon's dealings with the Soviet Union and China, the intelligence community may not need to pay so much atten- tion to the military abilities of the major powers. However, there may be new tasks for the intelligence com- inunity in an era of negotia- tion. For example, the protocol to the Soviet-American agreement on the limitation of strategic pose of providing assurance of compliance with provisions of this treaty, each party shall use national technical means of verification." In plain language, that means that the Soviet Union and the 'United States may each use its ,o-,vn photographic satellites and other intelligence-collectint de- vices to see whether the other side is abiding by the treaty. This is the ? "open skies" policy proposed by President Dwight D. Eisehnower at the Geneva problems to attract the inter- est of the intelligence agencies. One is the narcotics traffic. Ism, a form of warfare that cannot be dealt with by ordi- nary diplomatic means or con ventional military forces. The interest of the C.I.A. In these problems does not mean that the agency will no longer have an arm that can perform paramilitary functions. It also does not mean that the C.I.A.-to use a term hear here--will not "invest" funds In the affairs of third coup-, tries on occasion. Approved For Ae `ea 'e 2001/12/04: ? CIA-RDP84-00499 k000200050001-9 . Approved For' (ease 2004/1:6W eIA P88OG9'9 00200050001-9 2 APR 1973 PEOPLE OF THE WEEK? SHAKING UP THE CIA- "ND(ON'S BUREAUCRACY TAMER" A,TSST GOVERNMENT operation to feel ever said the agency would be strength- L the effects of a shake-up in its estab- cited by getting rid of fat and deadwood lished bureaucracy is the supersecret -and didn't mind as long as it didn't Central Intelligence Agency. include him-was right." The man behind what promises to be a The critics' view. Not everyone, of sweeping reorganization is the CIA's course, felt that way. Fears were ex- new Director, James 11. Schlesinger, who pressed that the cuts will result in reduc- has had this tag pinned on him inside ing the effectiveness of the CIA, and Government circles: "President Nixon's that intelligence work as a career will bureaucracy tamer." be less of an attraction. "Tough guy." Mr. Schlesinger came Said one such critic: to the CIA post from the Chairmanship "Whoever succeeds Schlesinger will of the Atomic Energy Conunission, where have the job of building the organi- he was also looked on as a "tough guy," zation back up to be able to do its job." Says one Government source: While sonic outsiders "At the AEC he turned things upside have been named to high down at first. Everyone there was up posts-notably Generals tight. But, in the end, his overhaul Daniel Graham of the improved morale at AEC trcineudously. Army and Lew Allen of "Now he has started out the same way the Air Force-high-rank- at CIA-and it looks as if he will get ing intelligence profession- the same results." als are still in top spots, As with most activities of the CIA, and a number are being the Schlesinger-ordered shake-up of per- promoted. sonnet is being conducted pretty much For example, the vet- under wraps. eran William E. Colby, No one in authority is saving-if any- who had been high in the one really knows-how manv of the esti- hierarchy as executive di- mated 15,000 on the payroll will be rector, has been moved up squeezed out before it is all over. to deputy director for Estimates of a 10 per cent cut have plans. been reported, :Knowledgeable sources A hard worker. Mr. say that is too high-but it is acknowl- Schlesinger, 44, was named edged that the reduction now under way to the CIA post by \Ir. is the biggest ever at the CIA, which has Nixon in December, re- had others in the past. placing Hichard Itches, Improvements ahead. The overhaul who was appointed Ambas- is across the board-young and old, pco- sador to Iran, -IISN&WR Photo Mr. Schlesinger, as new chief, is presiding over CIA reorganization and biggest-ever cuts in ,its payroll. pie from all areas of the agency. The new Director is described as a assistant general manager for environ- Every personnel folder is being read. hard worker, usually on the job from mental and safety affairs. And he is 1'lhe four main directorates in the agency 7 a.m. to 7 p.m. But, an official says, credited with making the AEC more con- -achninistration, plans, science and in- he does not demand that kind of day scions of the interests of conservationists telligcnce--are each handling the me- from those who work for him. Instead, in its planning for new uses of atomic cihanics of review in their divisions. this source explains: energy. Some tasks are being eliminated as "Ile makes it clear that what he wants "Very fast study." Mr. Schlesinger ouzo oiled, no longer needed in the is results, not time-clock punchers. As came to the CIA without background in charging intelligence world of today, long as the work is done in time, he pure intelligence work, although lie has But, at the same time, the word is out doesn't bother too much about the hours had touch experience in the wide field at CIA that the shake-up is designed to spent on it." of world strategy. improve American intelligence gathering Mr. Schlesinger was a stnnnrrr cunt One official describes him this way: -riot scuttle it. A slogan that begat to betide graduate of Ilarvard, and got his `IIc is a very fast study who does his be heard with \Ir. Schlesinger's take- Ph.D. degree there in 1956, homework." over was: "Intelligence is our first line After it year of travel in Europe and Out, bit of honresvork many associates of defense" parts of Africa and Asia, lee went to believe lie learned long ago: flow to trans- After the initial shock of the reduc- the University of Virginia to teach cco- form a bureaucracy into it well-timed Lions, some CIA officials began to take nonmics for eight years, machine. That apparently was the jot) second looks-and decided that what they Publication of a hook, "The Political President Nixon felt was needed at the saw was. of At b.Alpprtovold' "'keleasce'o2dMfl2 ~(!",'lA~KbP'i4.1b'6 bRd6bb 00050001-9 HS/HC- P( Z Min an offer of a job from the Rand Corporation, where lie eventually became director of strategic studies. . 'Mr. Schlesinger's first post in the Nix- on Administration, beginning in 1969, was assistant director of the Office of Management and Budget. In 1971 he rose to the Chairmanship of the AEC. Changing atomic policy. Mr. Schles- inger ordered a drastic reorganization of the AEC, resulting in a cutback of its high-level staff. But that wasn't his only :impact on the agency. One new job he created was that of P an~p~v4n JAMES R. SCIILESINGER now in progress was foresha- dowed by the administration's bureaucratic assault earlier this year on the Arms Control and Disarmament Agency, which in quick. sucession lost one-third of its budget, 12 staff positions, most of its frontline veteran officials and much of its influence in the new rounds >n Controversial CIA'..Shakeup of strategic arms limitation talks with the Russians. It is pointed out that the CIA estimators for years now have backed the longstanding disar.- mament argument that on-site inspection of Soviet missile fa- cilities is not necessary to en- sure that the Russians are liv- ing up to a disarmament agreement. At the other extreme, one former CIA official dismissed the whole Schlesinger exercise as "a phony operdtion." So far, this source argued, there is no. evidence that any really important changes are being made. .one indication this may be so is the fact that the newly appointed deputy director of plans-the man in charge of the CIA's worldwide clandes- tine "department of dirty tricks" operations-is William E.,Colby, the former head of the A m e r i c a n Pacification Program in South Vietnam. Despite the GLA's good repu- tation from the Pentagon Pa- pers as a gloomy but accurate forecaster of events in Indo- china, , it was Colby's side of final U. involvement in Laos mains an elite corps, so far and South Vietnam during the untouched by the purge, and early 1960's. . there are no Immediate signs More, generally, i however, that its ,chairman, John Hu- speculation' is focused on the izenga, is being asked to retire CIA's ;ntelligence evaluation prematurely.' function, rather than on the In the.'main, they. see the operations side, shakeup as motivated more by In the main, i n f o r m e d efficiency than by ideology. sources are resisting the Helms, the former CIA suggestion that the White,. director, received a mandate House would deliberately at. to streamline the intelligence tack the agency's intelligence community in November 1971, estimators simply because the when Nixon announced a re- reports they have produced organization plan of which were unwelcome: Schlesinger, then In the Budg- "This is our last hope," one 'et Bureau, was the main au- source said. "A, body inde. thor: Pendent enough to say a policy On the surface, the plan is no good if that is what it gave Helms sweeping authori- believes." ty over the whole intelligence At the same time, many In. community. But during his re- telligence experts concede that maining year as director, the Office of National Esti- Helms. did virtually -nothing on mates is "old and tired," and this missoin, and his inaction out of touch with the needs of is viewed as a key reason for Kissinger and his National Se-' his premature departure. .ourity Council specialists. , There are some signs Helms These close observdrs of the quietly resented this turn of intelligence scene note that the Office of National Estimates singer c Vi 0.1 sponsibility he was given. It is an open secret that some 85 ~ercent of the esti- mated $4.5 billion to $5 billion intelligence budget each year, is under the direct control of the Pentagon. But Helms, it is, pointed out, by former inti- mates, was never given au- thority to go up against the Defense secretary. Nevertheless, these sources' scoff at speculation that the recent CIA recruitment of two highly regarded Pentagon in- telligence analysts - Maj. Gen. Daniel 0. Graham of the Army and Maj. Gen. Lew Al- len of the Air Force - is a means of putting ideological' pressure on the office of Na- tional Estimates. Graham and Allen, it is pointed out, have been named to purely managerial positions on an inter-agency Intelligence Resource Advisory Commit- tee, a board set up in the Schlesinger-Nixon intelligence events and felt, he was never reorganization 'of 1971, but given the White House back- which rarely functioned. Appro V4Q ER ;.. ..1 Ad1 @/ n 13 ...- ; 0499 Q00200050001-9 By OSWALD JOHNSTON neously implementing a White CIA officials sought to mint- Star-News Staff Writer House directive first handed ' mize, said the agency eventu- James R. Schlesinger, , the down 16 months ago to stream- 'ally - would be cleared, of as new director of Central Lntelliline both budget and manpow- many as 3,000 underachievers ence, goes before -a Con es- er resources in the nation's in annual installments of. 1,000. signal committee today i his ' unwielding $5 billion-a-year in- the same time some si formal legislative p telligence operation, agency veterans close to- Ostensibly the question be- . outgoing Director Richard M. ance since reports began to , fore the subcommittee chair- Helms, whose own departure a at theCe of a major shakeup man, L u c I e n N. Nedzi, few months short of retire ; whether Congress . mont age gave rise to speoula- at the . , D-Mich is Sclilesesin inger's testimony be- should raise from 800 to 2,100 tion the White House was dis- fore the House Armed Serv- the legal ceiling on the num- enchanted with his perform- ices watchdog. subcommittee . ter of CIA employes who may,, ance, were reportedly asked to on the Central Intelligence claim retirement benefits and leave on only?a few hours no- Agency will, as usual,' be se- ' leave office after 20 years - ? tice. c r e t. But congressional .. service. expectations that q Sources close to the intelli- sources are not hiding their r But Nedzi left no doubt that ? genre community are appalled S c h l e s i n g e r willalso be by what one former CIA offi- poe of f focus an on ongoing p pu reported o f f : quizzed on the scope and me- cil termed the "peculiar bru- five of the intelligence agency tality" of S c h 1 e sin g e r 's 'CIA ranks: t ? That the White House has purge. "Undoubtedly, ques- house-cleaning, and apprehen- ordered a concerted idealagi tions will be asked about how ' sive over what ' it may mean. many men are leaving -and But they are far from certain. cal attack on the supposedly why," Nedzi said in an inter- ? One view,' expressed by a liberal bias of the CU's small ' view yesterday. source of long eperienee in the but elite Office of is s nominally nominally Speculations aside, it is still intelligence community, sees a responsible which clear how far Schlesinger's conscious effort to punish the worldwide imnt eelligencrone assess-, tbhe , new broom will sweep, and to CIA's intelligence'assessors by mends upon which President what end. , cutting back their influencence mends Nixon, Henry A.-Kissinger and Varying ~ reports have the and enhancing that of the Pen- the National Security Council 15,000-man agency, facing a tagon's rival- Intelli- base policy decisions. cutback of from 1,500 to 1,800 genre Agency. ? That Schlesinger is siiinulta- ? employes. One report, which In this view, the CIA purge 743HINICI 3iT STt..R Approved For ease 2001/1 f'O44 MA PA} P84-00499Rpo0200050001-9 GOULD LINCOLN ?"lie Cost of Intelligence ls`l' g,6 ,z As a nation, and as a gov- ernment, how intelligent are we? According to Noah Web- ster, American lexicographer who flourished from 1758 to 1843, intelligence means the capacity to comprehend facts +and understand them. A sec- iond meaning is an agency of government to watch an ene- my nation, or potential enemy nation, for national defense. And it is estimated that we are spending 1,46 billion dollars each year on our several in- telligence agencies for such purposes. How intelligent is that? James R. Schlesinger, new director of the Central Intelli- gence Agency, it is reported, has begun the largest person- nel cutback in the history of that agency, and also in the .personnel of the National Security Agency, which seems an intelligent thing to do. However, the cutback, it is said, will be only 10 percent across the board. The CIA has approximately 18,000 jobs and possibly 1,800 of them will be abolished by June 30, the end of the present fiscal year. The National Security Agency has about 100,000 employes, and a 10 percent reduction would mean laying off 10,000. Still another agency, much small- er, the Defense Intelligence Agency, has about 3,000 jobs, and it too is slated for a cut- back, it is said. These intelligence agencies are of the executive branch of the government. But what of the legislative branch-the Congress, Senate and House? It has innumerable investiga- tive and intelligence agencies, looking into all kinds of af- fairs, foreign and domestic, particularly at the present moment. Take, for example, the Sen.- ate Foreign Relations Com- mittee under the chairman- ship of Sen. J. William Ful- bright, Arkansas Democrat. It is investigating President Nixon's conduct of the war in Vietnam and had been doing so for a time, with unfortu- nate results, causing a length- ening of the war by encourag- ing the Hanoi Communists and the Viet Cong in the belief that the anti-war voters in this country would kill off Nixon in the presidential elec- tions and put in his place Democratic Sen. George. McGovern, or some other anti-war Democrat. Although this tactic failed, Sen. Edward M. Kennedy of Massachusetts continues to belabor this issue, claiming that the war could have been effectively ended at least four years earlier, with the saving of thousands of American and Vietnamese lives. In the bright lexicon of youth, ap- parently there is no such word as fail, especially where the political demise of the Presi- dent is the end desired. Sen. Sam J. Ervin Jr., North Carolina Democrat, is leading the investigation of Nixon's appointee to be per- manent head of the Federal Bureau of Investigation, L. Patrick Gray III, a former high-ranking naval officer. Gray was handed the job, on a temporary basis, after the death of J. Edgar Hoover, who had been director nearly half a century, the first direc- tor after the creation of the bureau, and who had given it a reputation for great effec- tiveness. Gray has been accused of giving John W. Dean III, pres- idential counsel, reports of the investigation of the Water- gate caper, which had been demanded by the Senate Judi- ciary Comunittee. Dean, it has been charged, passed the de- tails of the investigation along to the White House and to important members of the Committee for the Re-election of the President, including former Atty. Gen. John N. Mitchell. This, in view of Sen. Ervin and other Democratic, and some of the liberal Republi- can senators, was outrageous conduct. In consequence, they are threatening to defeat con- firmation of the Gray appoint- ment in the committee and the Senate itself, or failing that, to hold up action indefinitely on the nomination. Then there is the Senate committee investigation of the charge that the International Telephone and Telegraph Corporation-the ITT-of- fered $1 million to be used to prevent the election of Salva- dor Allende, a Marxist, to be. president of Chile. John A. McCone, former director of the Central Intelligence Agen- cy, testifying before the Sen- ate Foreign Relations sub- committee on multinational corporations, said he had told two top officials of the Nixon administration-Henry Kis- singer and the then CIA Director Richard Al. Ilelms- that the ITT was willing to contribute a. sum rising into seven figures to defeat Al- lende in a runoff election. Al- lende had been the high man in the first election. The ITT was afraid that if Allende became president, he would confiscate its $150 mil- lion telephone company oper- ating in Chile and other hold- ings of the company. The Nixon administration, however, would have nothing to do with this operation and said so, McCone declared. McCone was named director of the CIA by President John F. Kennedy after the abortive Bay of Pigs invasion. Edward Gerrity, an ITT of- ficial appearing before the subcommittee, flatly denied McCone's version of the ITT's dealings with Allende. Gerrity insisted ITT offered help to Allende, including large fi- nancial aid. 't'his, members of the subcommittee said, ap- peared to them incredible. Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved Forgolease'2001/12/04: CIA-RDP84-00499$p00200050001-9 e tt"ain, and TIie o s ?Ne s lat CROSBY N. BOYD, Chairman of the Board JOHN H. KAl1FFMANN, President NEWBOLD NOYES, Editor WEDNESDAY, MARCH 28, 1973 CHARLES BARTLfTT dough Handling of Elite Agency The suburban mausoleum housing the CIA's unique collection of intelligence gathering talents is an unhap- py corner of town under its tough-minded new manage- ment. The CIA had not appeared a likely candidate for the woodshed. The agency emerged from Vietnam less scarred than any of the other participants. It has managed its ticklish responsibilities in Laos with admirable skill and slowly recouped, through per- sistent prudence, the standing that was lost 12` years ago at the Bay of Pigs. The force behind the move to shake up the CIA is Presi- dent Nixon. While Henry Kis- singer has usually seemed satisfied with the intelligence he's been getting, Nixon has tended to regard the agency as a last stand of the old school tie, a vestige of the Eastern establishment that he dislikes so intensely. It is probable he has not forgiven, the CIA for creating in 1960 the missile-gap illusion that worked against his election. Moreover the vast cost of photographic intelligence, the rich harvest of the satellites' ranging eyes, has contributed. to an uncomfortable swelling of the intelligence community budget. It stands now at about $4.5 billion, enough to raise outside suspicions that secre- cy may be serving as a cush- ion to soften the fiscal squeeze that afflicts the rest of gov- ernment. The President's chosen in, strument for the CIA shakeup is James Schlesinger, a 42- year-old recruit from acade- mia who has made his pres- ence felt in a series of key administration jobs. Solid and. self-assured, Schlesinger of.. fers a sharp contrast' to the "band of brothers" style of leadership with which Allen Dulles ran the CIA. The new director did not want the job but he has moved into it hard. His conduct suggests his embrace of a thesis that the CIA has been functioning in 'a cozy, self-protected world which has grown somewhat isolated in suburbia and more remote than it should be from those who make the policies. Schlesinger appears bent on disrupting the traditions that defer to the intelligence mores of an earlier era and deny the new importance of technology. ,He is, going after some of the protective devices. He wants estimators who will lay their judgments on the line instead of hedging so they are never wholly right or wholly wrong. He has takn an ax to the personnel deadwood, seemingly undeterrred by his predecessors' fear of provok-. ing discharged employes into becoming security risks It all adds up to rough treat- ment of an elite agency and complaints are stirring at what some describe as. need- less brutality. Schlesinger is criticized more for his style than for what he is doing, but the bitterness is enlarged by lingering resentments against the callous way in which the President replaced Richard Helms, the previous director who had staked a strong claim to his 'subordinates' loyalty Schlesinger's track record in Washington portends that he knows what he is doing. There is no graceful way tol shake up an agency. But he will need to shift, at some point, from being the CIA's shaker to being its leader and he may find he has paid a price in demoralization, per- haps in the loss of men he can ill afford to lose, for his pre- cipitous manner of taking command. If Schlesinger can make the. CIA leaner without causing its employes to feel they are being ptnished, his intrusion on the marble mausoleum will be a healthy thing. It is pat- ently clear that an era. of wary detente is not going to diminish the need for good intelligence and it is useful to have a wise outsider examine an operation long run by in- sides. I35/HC- ~~Z Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 I Approved For Relate 2001/12/04: CIA-RDP84-00499R00W? 0050001-9 THE EVENING STAR and DAILY NEWS Washington, D. C., Wednesday, March 21, 1973 A-2 X Schlesinger Sets Lame Cutbacks In CIA Personnel By SEYMOUR M. IIERSH New York Times News Service James R. Schlesinger, the ?'nnew director of the Central In- telligence Agency, has begun e, Ahe largest personnel cutback -,1n the history of the agency. Unofficial CIA sources esti- '''mated that at least 1,000 - and possibly as many as 1,800 of the agency's approxi- -mately 18,000 jobs will be abol- Ished by June 30. In addition Schlesinger is ex- pected to continue cutbacks in other intelligence agencies too, such as the huge National Se- curity Agency and the Defense Agency. An official agency source ac- knowledged that what he termed a "reduction in force" _,, known in the government as a RIF-is under way "on a -.-'very selective basis" to elimi- nate "marginal performers." But he would give no figures. No official announcement of :the cutbacks has been made to 'employes at CIA headquarters " in Langley, Va. "This is the first place I've 4 ever been in where all the ru- mors come true, one agency ,.employe said. "You get a call ..,and get an interview and that's it," he said, describing the job-elimination process. In addition to the layoffs, .+ Schlesinger ? has initiated a high-level shakeup of key management positions inside pe. agency. and that was very oare- said, I I He reportedly has been told fully handled." For R91'easa 2001./12/04: CIA-RDP84-00499R0002.00050001-9 by President Nixon to improve the efficiency of the nation's over-all intelligence opera- tions, which cost more than $6 billion a year. The CIA's Office of rte- search and Development in Rosslyn is said to be particu- larly affected. The office is responsible for most of the agency's basic research proj- ects. The official CIA source, however, described the cuts as " and being "across the board not limited to any specific of- fice. The Associated Press quoted sources as saying that reports of a 10 percent reduction at CIA are high. In some cases, sources told AP, some em- ployes have been transferred to other jobs, and some admin- istrative personnel have been reshuffled. A former high-level official expressed surprise when told of the large-scale personnel cutbacks. "The CIA doesn't have RIFs," he said. "That's always been considered a se- curity risk." The only significant cutback in the agency's history took place shortly after John J. McCone was named director in 1961 by President Kennedy, a few months after the abort- ed Bay of Pigs invasion of Cuba. About 260 agents em- ployed by the agency's clan- destine service were eliminat- ed then, the former official " Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 THE CIA: The Spook Shaker James R. Schlesinger took over from Richard Helms as director of the Cen- tral Intelligence Agency only last month, but, no has already stirred up the kind of Washington buzz that goes with any shake-up at the spook house. In his first weeks on the job, the deceptively tweedy new master spy relieved three of the agency's top deputies-and sent waves of anxiety rippling down through the ranks. "They have always moved bodies around here," said one CIA in- sider. "But never have so many been moved so fast-or with so much clatter." Sudden as the changes seem, from President Nixon's point of view they are long overdue. Well over a year ago, Mr. Nixon charged Helms with streamlining and coordinating the nation's sprawling, $6 billion-a-year intelligence network (which, along with the CIA, includes the National Security Agency and the Defense Intelligence Agency). But the President's directives weren't fully im- plemented. Helms, a Democratic hold- Schlesinger: Retiring the old boys Newsweek, March 19, 1973 over, got little White House backing, And he had no better luck on his own: more than 80 per cent of intelligence money and manpower was under the direction of Defense Secretary Melvin Laird-with whom Ilelms often clashed on major intelligence estimates and the administration of the agencies. Schlesinger has no experience In the spying trade. But he won high marks as an administrator during a seventeen- month stint as chairman of the Atomic Energy Commission; justifiably or not, he is regarded as tougher, more hard- headed and more conservative than the II urbane Ifelms. Significantly, he enjoys the unreserved backing of White House chief of staff II.R. Haldeman. And it was Schlesinger, as head of a study by the Office of Management and Budget, who drew up the original plan for the restructuring of the nation's intelligence apparatus-the plan that Helms failed to execute swiftly enough to suit Mr. Nixon. Shake-up: His arrival was followed by the departure of three solid CIA veter- ans: Bronson Tweedy, Helms's longtime deputy; Thomas Parrott, Tweedy's No. 2; and Thomas Karamessines, the agen- cy's deputy director of plans (the so- called "dirty tricks department' ). And more resignations are expected. Warns one Capitol Hill specialist on the CIA: { "If he pushes this shake-up all through the intelligence community, he could be , regarded as a big, bad wolf." So far, however, Schlesinger's housecleaning does not seem to be shaping up as a blanket elimination of CIA old boys. Karamessines, for one, had twice asked permission to retire, only to be persuaded to stay on. And for his replacement, Schlesinger tapped one of the original old boys: 53-year-old William E. Colby, a 23-year CIA veteran who had served with the OSS during World War II. Schlesinger is remaining properly se- cretive about his plans for the agency. But in recent stories leaked to several newspapers, "authoritative sources" who sounded suspiciously like Schlesinger i himself offered some strong clues. By these accounts Schlesinger hopes to en- large the CIA's role in combating inter- national crime, narcotics traffic and ter- rorism., lie also hopes to polish up the agency's tarnished image at home. And, with the Vietnam war wound down and the Soviet Union enlArginlt its influence in the Persian Cull', the new master spy is reportedly eager to re-focus CIA ef- fort in the Middle ]East. Approved. For Release 2001/112/04: Ck1A-RQP84-0.04808 00200050001-9 Approved For Releq~e 2001/12/04: CIA-RDP84-00499R00Q0050001-9 [Items appearing on this page are being talked about in Washington or other news centers] Friction between the Central Intelli- gence Agency and- military intelli- gence officers has not been eased by the change in command at the CIA. A Defense Department source corn- rnented: "We thought the variance between CIA and Defense intelligence estimates would narrow with the ap- pointment of James R. Schlesinger as the new Director at CIA. But the gap has actually widened and the trend is disturbing." [flS/iICiC4Proved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved For$aIease 2001/12/04: CIA-RDP84-00499$D00200050001-9, 'A-10 X THE EVENING STAR and DAILY NEWS Washington, D. C., Tuesday,; JIS/FIG c1,z, Ex-CIA Aide' Is Praes.ed By President Thomas H. Karamessines has retired from a key post at the Central Intelligence Agen- cy after getting high praise from President Nixon and presidential assi c n', Henry A. Kissinger. After more than 3D years of - government service, Karames- sines retired at the end of last month. He was cep~_,,y director for plans. The agency provided letters showing the praise for Kara- messines shortly after The Star-News reported that he had been "fired" by the new - CIA director, James R.. Schles- inger. Schlesinger himself joined in the written remarks about Karamessines' service. The director spoke of "great devo- tion and professionalism." The President's letter, dated two days after the story was published, said that Karames- sines had handled "some of our government's most sensi- tive tasks . . . in a thorough- ly professional manner." Kissinger, in, a letter dated four days before the story had appeared, said Karamessines had. "handled the most deli- cate missions with the utmost discretion," and declared that the retirement "is a hard blow." Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved ForWease 2001/12/04: CIA-RDPB4=d8i99 00200050001-9 5 tsiC? 1 "97.3 James R. Schlesinger, newly named head of the Central Intelligence Agency, comes to the job unhampered by previous intelligence experience - unlike his predecessor, Rich- ard M. Helms, a life long veteran of clandes- tine operations. Mr. Schlesinger. is a tall, craggy, systems analyst with a habit of working in his shirt- sleeves. If, while conferring with his col- leagues his shirttail hangs out - as it often does - it bothers him not. Calm, relaxed, analytical, he can lose himself in a problem while the hours slip by. . < Those who knew Schlesinger in his OMB (Office of Management and Budget) days- where he drafted for President Nixon a plan to reorganize the national intelligence com- munity - praise his ability to spot the weakness in an argument or structure - and quickly find ways to strengthen it. He has already begun to humanize the sc:crecy- shrouded Atomic Energy Commission, and in his next post he is expected to rid the CIA and its sister intelligence agencies of their ac- cumulated fat and improve their product. "I predict he's going to drop some of the veteran cold warriors from World War II or the Korean days and promote younger men," said one of his closest associates. "He'll leave day-to-day operation . in their hands and concentrate on matters of Cabinet-level im- portance. Each time he goes to the White House you can bet he'll know his subject from AtoZ." The three areas that Mr. Schlesinger is expected to focus on include first the CIA's clandestine operations - still reportedly absorbing about, $400 million of its $x;00 million budget and more than half of its 15,000 emplo ees. Others are scientific research and the voluminous, often controversial,! national intelligence estimates. The latter,' insofar as they forecast Soviet and Chinese' capabilities and intentions, have an immense`,, impact on presidential budgetary and de-I fense policies. In recent years the CIA, which alone is authorized to conduct espionage. abroad and, occasionally, to topple unfriendly govern-', ments, has had its funds for "CS" (clandes- tine services) appreciably slashed. Such, paramilitary CIA operations as the "scret" war in Laos, begun on President Kennedy's instructions in 1882, now are drawing to a close; end the weekly meetings of the Forty! Coanrnit_tee, the supersecret White House panel headed by Kissinger that passes on all covert operations sufficiently important to enlbnrra::,s the Unit.:d Status Government if disclos d, are si id to be desultory, indeed. srifteal from the spy in a foreign cabinet to Lhe orbiting sateii: es thhat 001leet hundreds of photo- show you photographs of Washin ;ton down to the minutest details of the White louse lawns - but you still won't know what's going on inside the heads of the policyma lk:ers." The brilliant hi h-resolution photographs of Russian and Chinese Missile silos, nu- clear plants, airfields, and submarine pens that are collected day after day (when the weather permits) by $20 million satellites orbiting around the earth every 90 minutes 110 to 1:1.0 miles up nnake possible the SALT agreements. The U.S. and the Russians, who too have their satellites, each know what the other has; now and a-building. But whereas capabilities can often be ascertained through satellites - intentions require spies- In CIA jargon this is called "hum-int" - human intelligence. Some experts ever question whether the U.S. intelligence community has anything "downstream" - in development - to replace the spy satellites should the Russians or Chinese one day shoot them down or sateguard. Apparently the community is fearful of seeking fresh funds lest Congress or the OMB cut back the funds already allo- cated: Si billion yearly for spy satellites and as much for global code-breaking. Mr. Schlesinger is expected, finally, to take a hard look at the overt - or evaluation side of his CIA. Part of it the 'Of`' xlce a National Estimates, produces yearly for the j President studies ranging from a quick analysis of the latest Central American flare- up to the massive survey, completed every September, of Soviet strength and likely actions. Periodic ally domestic politics impinge on intelligence evaluations, Secretary Laird told j Congress flatly in 1969, for instance, the U.S.S.R. was going fora "first strike capabil- ity"; i.e., had succeeded in MiRVing its giant SS-9 missiles - giving each component warhead the same independently targetable capability as have the U.S. Polaris and Poseidon missiles. CIA disputed this at the ':. time -- and still does - but none the less Kissinger sided with Laird's effort to pry more defense funds from Congress. Whether Mr. Schlesinger can now insulate the CIA from administration pressure and keep its reporting honest remains to be seen. He comes to his task, however, with full Nixon backing; with no ties to the cold war; with few contacts in the press and with little interest in the social blandisimients of the "Georgetown cocktail set." Mr. Welles, for many years on the staff of the New York Times, is now an independent commentator on what goes on in Washington. ziraph plus tclsen;,2tiApF tec2JtF,or.RWease c uali1 ~:i~ c ' 0 .. I can Approved For Rele 2001/12/04: CIA-RDP84-00499R008200050001-9 THE WASHINGTON POST. Sunday, March 4,197.3 A27 l~e`v CIA ;thief leeks Closer Rein L U$, . Espionage Community .0n, U CIA's Schlesinger .Begins CIA, forced out two mem- See CIA, A27,'Col..1 Streamlining Operations By Thomas O'Toole Washington Poet staff writer The new director of the berg of the old guard and Central Intelligence Agency set about the task of bring- has begun the long-promised ? ing under CIA control the reorganization of the vast three other federal services U.S. intelligence community that with the CIA make up with an eye toward stream- the bulk of the U.S. intelli .lining his own agency and gence network." bringing military intelli- This description' of Schle- .gence under closer civilian singer's first month as CIA control. director came from an au- At the peak of the n Viet- thoritative source, who said nam war', the U.S, intelli- that Schlesinger is. acting oil' gence community employed the personal instructions of 150,000 persons and spent $6 the President. It was Schle- billion a year, a growth that singer who directed a mas- led to , duplication, inter- sive study of the intelli agency Pickering and' juris- gence community when he , dictional j ies that hor was a member of the Office rifled President ident Nixon. of Management and. Budget.. In his first month as- di- in 1971, just before he be rector, James R., Schlesinger, came c h all r m in of the has moved three' choices of Atomic Energy Commission. CIA, From Al One source on Capitol ing from "aging and bureau-_ Paring of the Defense De- Hill said that $1 billion had cratization."? been cut from the budget of. Schlesinger appointed ' partment's intelligence ac- the Defense Intelli en tivities began even before g . ce William B. Colby as deputy: Schlesinger moved into the Agency alone, a figure that director of plans, which is was disputed in size only by the CIA title for the man,: CIA. Manpower at the De-: fense Intelligence Agency, another source. who heads the agency's co-` vert espionage operations or'' the National ' Security "It wasn't that much of 4' 1 ? "department of dirty tricks." i Agency and the intelligence cut," the source said, "but it , Now 53 years old, 'Colby was branches of the four armed was a good-sized bite." at one time head of the U.S.') services had climbed above' Since becoming director, pacification program in 100,000 persons at one. point, 'Schlesinger has made five South .Vietnam. In', addition, 50,000 others - key moves in his attempts to Colby replaced Thomas Ka?. were scattered through 10 strengthen the CIA, which', ramessines, who had wanted other agencies one source said was?suffer to retire two years ago but ~J -7' pproved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 The new CIA director is also : to believe that the Approved For Rel a 2001/12/04: CIA-RDP84-0049.9MQQ2@0l 5MQ e9ts role with the changing times. One source said that Schle- singer believes t h e CIA must. begin to gather more intelligence about interna- tional crime, terrorism and narcotics traffic. "The international terror- coins Bets touch." from the CIA was said to be. telligence and knew Schles- jr the American public had a inger who had admired greater understanding of Ahern since his own days the need for intelligence," with the Rand Corp. one source said. "I don't "Jim [Schlesinger] is a think he believes he can get takeover kind of guy," one . the job done right if there is- source said, "and these ap- hostility and opposition to nointments hrinc* in mPn lip the CIA because it's thought Committee. They are Ariny be concerned about public ":. Maj. Gen. Daniel O. Graham opinion of the CIA and the and lar. Force Maj. Gen. role of espionage in an in- ;?,LeW Allen, both of whom . creasingly critical world so- ciety. have served In military in "I think Jim would like it - "` ""` 11`' that Schlesinger feels sistence of the White House. should be watched far more One published report said closely," the same source that Karamessines had been said. "There are some peo- fired by Schlesinger, but pie in intelligence who say sources close to the CIA in. it's going to take a major ef- sisted this was'incorrect. fort to keel) these terrorists' The new CIA director also out of the U.S., to keep pulled a pair of generals out = them from assassinating of the Pentagon to serve on'. public figures right here on the newly formed Intelli American soil." gence Resource Advisory `F Schlesinger is also said to ? gva..g .o cnycuLcu W.' at the CIA as Schlesinger's get tough quite soon, since arrival. Helms presided over It is understood that Schle. the CIA for the past seven singer plans a complete". years, during which time the overhauling of the CIA. One United States was caught in and into the Persian Gulf. G117 Z profile Is admired more than standing in society., ploys 15,000 persons, and has Sontay prisoners-of-war. a budget of $600 million a camp in North Vietnam are year. all cited as failures of U:S. Schlesinger has already ' intelligence. The lack of in- forced two old CIA hands telligence about. North Viet- into early retirement. One Is nam's invasion of Cambodia Bronson Tweedy, former in 1970 and of its offensive .deputy to Schlesinger's in South Vietnam a year ago predecessor, Richard M. are also cited as examples of Helms. The other is Thomas an intelligence community grown too bureaucratic. Parrott, a deputy to TWeedy While Helms was admired, who had been at the CIA for his tough-mindednessi he since 1961.' was also viewed with suspi- Schlesinger is said to be- cion by the Nixon White that the CIA must House for his independence lieve shift gears now that there is and his alliances in Wash- a cease-fire in Vietnam. He ington society. is said to think that the Mid- His power base in Con- dle East should now be the press, his friendship with focus of CIA attention, par- Washington columnists and ticularly since the Soviet his socializing at George- Union is understood to be town cocktail parties were /12/04: CIA-RDP84-004 "~ J''a9 jow Appi' Y W FM P "1'2004 out o t fie e terranean an "old boy network" that The loss of the Pueblo, had been allowed to grow the loss of a U.S. reconnais- unchecked since it was crco ~ance plane in North Korea 'ated by President Trumanright after the Pueblo disas- in 1947. The CIA now ems .'ter, the abortive raid on the source described the CIA as ures. Approved For Release 2001/12/04: CIA-RDP84-00499ROOQ200050001-9 F heal :News TV-RADIO WAJt1IIVLa lviv,.v.,~.., I IIVI'JVnI j n.r~.w.. ?, ?-?-. By SEYMOUR M. HERSH New York Times News Service James R. Schlesinger, the new director of the Central In- telligence Agency, has named William E. Colby, former head Of the American pacification program in South Vietnam and Jive, as director of clandestine operations. Sources reported yesterday that Colby, 53, assumed his new top-level job this week. Colby will be in charge of all Resource Advisory Commit- tee. Through. this committee, Schlesinger is expected to seize over-all bureaucratic and financial control of the U.S. intelligence community, which is estimated to spend $6 billion annually. The generals selected for the committee are Maj. Gen. Dan- iel 0. Graham of the Army, who is director of estimates for the Defense Intelligence Agency, and Maj. Gen. Lew Allen of the Air Force, deputy commander for satellite pro- grams. Graham, whose promotions to major general becomes offi- cial today, has been a sharp critic of the CIA's Office of National Estimates, one of the top intelligence review groups in the nation. His appointment has alarmed some intelligence of- ficials who view it as the be- ginning. of an attack on what some have called a liberal bias in the agency's intelll- als for his new Intelligence gence estimates.' Fo. Re ease 2001/12/04.: CIA-RDP84-00499R000200050001-9 CIA espionage activities and covert operations, conversa- tionally known in Washington as the "Department of Dirty Tricks." Colby had been executive director of the agency, a post combining the functions of the inspector general and control- ler; that post has now been abolished by Schlesinger, the sources said, as part of his revamping of the agency. It also was disclosed that Schlesinger has chosen two Approved Fowelease 2001/12/04: CIA-RDP84-0049,p00200050001-9 POLISH PARTY ORGAN DISCUSSES SCHLESINGER APPOINZM ENT article initialed m: "Personality, James Schlesinger; Warsaw, Trybuna Ludu, Polish, 1 March 1973, p 7 After 25 years of service in the CIA 60-year-old Richard Helms, former head of this agency, was named ambassador to Iran, and Dr James R. Schlesinger has taken his place. The new director of the Central Intelligence, Agency is I3 years old and despite his relatively young age has a rich career of activity in various government and scholastic organizations. Directly prior to taking over the "super spy" portfolio, Schlesinger was director of the U.S. Atomic Energy Conanission. During his work in this position he was known as a determined defender of the thermonuclear test in Amchitka, Alaska, which caused the protests of so many American scientists and of public opinion. Schlesinger does not at all resemble the s teereotype of former CIA chiefs. A scholar and organizer, he completed economic studies at the elite Harvard University and then immediately began economic lectures at the University of Virginia. Shortly thereafter he received an offer to work for the research institute Rand Corporation, which makes experts' reports mainly at the request of the State Department and the Pentagon. Schlesinger was an adviser on questions of armaments and security for this corporation. In the opinion of his coworkers, the new CIA chief is considered a talented organizer. These attributes determined his nomination in 1968 as deputy director of the Office of Management and Budget. L ~C-~4 7- Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved For R eease 2001/12/04: CIA-RDP84-00499RQQ0200050001-9 Schlesinger energetically busied himself with matters in this important government institution. In recent years the CIA has not had and is not having the best luck. Various political scandals caused by the Central Intelligence Agency mixing in matters lying completely outside its competence, the infiltration of social organizations, and the close connection with the agency of various politicians have disturbed not only American public opinion but have also caused the administration concern. The statute and area of CIA. activities were defined by a law in 190 ("on national security"). With the passage of time the agency departed more and more from the initial principles, slowly becoming a state within a state and administering enormous, uncontrolled funds. A special commission for evaluating the activities of American intelligence institutions was created in 1971. James it. Schlesinger became head of this commission. He penetrated the complex organizational structure and jungle of authority in American?6pf, agencies and prepared a report which provoked the reorganization of the-exy apparatus. In its /-the intelligence apparatus s~y,~tneYand diversive activities, it meddles in the internal affairs of other countries, directs undeclarod wars, overthrqws governments that are inconvenient for the United States, and supports dictatorships. h-take= charge of "free" broadcasts, secretly organize`'the publication of books and articles, and creates"private" airline companies which servd-sp1Y`"g6aa5. Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved For Release 2001/12/04: CIA-RDP84-00499R00Q200050001-9 C.I.A. HEAD NAMES ESPIONAGE CHIEF Colby Becomes Director 'of Clandestine Operations By SEYMOUR M. HERSH ..Special to Ti,. New York Time. WASHINGTON, Feb. 28- James R. Schlesinger, the new director of Central Intelligence, has named William E. Colby, former head of the American pacification program in South Vietnam and a long-time intel- ligence operative, as director of clandestine operations. Knowledgeable sources re- ported today that Mr. Colby, 53 years old, assumed his new top-level job this week. Formal. ly known inside the agency as the deputy director of plans, Mr. Colby will be in charge of all C.I.A. espionage activities and covert operations, widely known in Washington as the "department of dirty tricks." Mr. Colby's previous position, executive director of the agency, a post combining the functions of the inspector general and controller, has ben abolished by Mr. Schlesinger, the sources said, as part of his revamping of the agency. Two Generals Chosen It was also disclosed that Mr. Schlesinger .-has chosen two highly regarded major generals for his new Intelligence Re- source Advisory Committee. Through tills committee Mr. Schlesinger is expected to seize over-all bureaucratic and finan- cial control of the United States; intellicence community, which is estimate to spend $6-billion) annually. Through this' committee Mr. Schlesinger is expected to take over bureaucratic and financial control of the United States in- telligence community, which is estimated to spend $6-billion annually.. The generals selected for, the committee are Maj. Gen. Daniel 0. Graham of the Army, who is director of estimates for the Defense Intelligence Agency, and Maj. Gen. Low Allen of the Air Force, deputy commander for satellite programs. General Graham, whose pro- motion to major general be- comes official tomorrow, has been a sharp of 61A criti~cp of 1 ~Ettile C r. ir~00-thb t wt, H- gence review groups in the nation. THE.NEW YORK TIMES, THURSDAY, MARCH 1, 1973 Many Are Alarmed His appointment has alarmed many intelligence officials, who view it as the beginning of an attack on what some have celled a liberal bias in the agency's intelligence estimates. In a recent syndicated column, for example, Joseph Alsop criti- cized what he called the "spe- cial historical bias" of the analysts under the leadership of the former Director of Cen- tral Intelligence, Richard M. Helms, who was named Am- bassador to Iran last January. Mr. Alsop's column then went on to note that Mr. Schlesinger "is even bringing in from the Defense Department, the most pungent and persistent critic of the C.I.A.'s, estimating-analyz- ing hierarchy. "This detested figure is, in fact, to be named the new head of the hierarchy, unless present plans are changed," the column said. Intelligence sources said that the unidentified critic of the agency mentioned in Mr. Al- sop's column was General Gra- ham, who became well known to officials in the agency after serving a tour with it as a colonel. Another Appointment It could not be learned whether General Graham will, be named head of Mr. Schles- inger's Intelligence Resource Advisory Committee, although official sources inside the C.I.A. did confirm that he and General ,Allen would be joining the di- rector's staff. Agency assign- ments have never been publicly announced by the Government. Another member of that staff, it was disclosed, will be Dr. Jack Martin, who until early this year was serving with the White Houses Office of Science and Technology. The sources said that the in- telligence committee had re- placed the C.I.A.'s National In- telligence Program Evaluation staff, which was headed by Bronson Tweedy and Thomas Parrott, two key aides to Mr. Helms who, The New York Times reported last week, were ordered to retire by Mr. Schles- inger. The Times also reported that Thomas 11. Karamessines, Mr. Colby's predecessor as director of the clandestine services, had been ordered to retire by Mr. Schlesinger. Agency officials Wa1II I01ht' a. , r~ttt*00 in fact requested retirement last year but had been asked to stay on. Mr.' Karamessines has been in ill health for some time. The appointment of Mr. Colby, a Princeton graduate who 'began his intelligence ca- reer with the Office of Strategic Services in World War II, was imore favorably received by many senior Intelligence offl- ,cials. "lie's the classic old espion- age type," one intelligence analyst said of Mr. Colby. "The kind of guy who never attracts attention." Other sources questioned whether Mr. Schlesinger's ap- pointment of Mr. Colby would lead to a widely expected shake-up of the clandestine services, which attained notori- ety in 1967 with the disclosure that it was secretly subsidizing the National Student Associa- tion. Approved ForQolease 2001/12/04' CIA-RDP84-004999000200050001-9 C.I.A. HEAD NI ~"ES ESPIONAGE CHIEF Colby Becomes Director of Clandestine Operations By SEYMOUR M. HERSH ? Special to Thu New York Times WASHINGTON, Feb. 28- James R. Schlesinger, the new director of Central Intelligence, has named William E. Colby, former head of the American pacification program in South Vietnam and a long-time Intel- ligence operative, as director of clandestine operations. Knowledgeable sources re- ported today that Mr. Colby, 53 years old, assumed his new top-level job this week. Formal- ly known inside the agency as the deputy director of plans, Mr. Colby will be in charge of all C.I.A. espionage activities and covert operations, widely known in Washington as the "department of dirty tricks." Mr. Colby's previous position, executive director of the agency, a post combining the functions of the inspector general and controller, has ben abolished by Mr. Schlesinger, the sources said, as part of his revamping of the agency. Two Generals Chosen It was also disclosed that Mr. Schlesinger -has chosen two highly regarded major generals for his new Intelligence Re- source Advisory Committee. Through this committee Mr. Schlesinger is expected to seize over-all bureaucratic and finan- cial control of the United States intelligence community, which is estimate to spend $6-billion annually. Through this' committee Mr. Schlesinger is expected to take over bureaucratic and financial control of the United States in- telligence community, which is estimated to spend $6-billion annually. , The generals selected for. the committee are Maj. Gen. Daniell 0. Graham of the Army,, who is?director of estimates for the Defense Intelligence Agency, and Maj. Gen. Lew Allen of the Air Force, deputy commander for satellite programs. . General Graham, whose pro- motion to major general be- comes official tomorrow, has been a sharp critic of the C.I.A.'s Office of National Esti- mates, one of the top intelli- gence review groups in the nation. Many Are Alarmed nl:uly Are Alarmed His appointment has alarmed many intelli,;encc officials, who view it as the beginning of art attack. on what some have celled a liberal bias in the agency's intelligence estimates.! In a recent syndicated column, for example, Joseph Alsop criti- cized what he called the "spe- cial historical bias" of the analysts under the leadership of the former Director of Cen- tral Intelligence, Richard M. Helms, who was named Am- bassador to Iran last January. Mr. Alsop's column then went on to note that Mr. Schlesinger "is even bringing in from the Defense -Department the most pungent and persistent critic of the C.I.A.'s, estimating-analyz- ing hierarchy. "This detested figure is, in fact, to be named the new head of the hierarchy, unless present plans are changed," the column said. Intelligence sources said that the unidentified critic of the agency mentioned in ' Mr. Al- sop's column was General Gra- ham, who became well known to officials in the agency after, serving a tour 'with it as a' colonel. Another Appointment It could not be learned whether General Graham will, be named head of Mr. Schles- inger's Intelligence Resource Advisory Committee, although official sources inside the C.I.A. did confirm that lie and General ,Allen would be joining the di- rector's staff. Agency assign- ments have never been publicly announced by the Government. Another member' of that staff, it was disclosed, will be Dr. Jack Martin, who until early this year was serving with the White house's Office of Science and Technology. The sources said that the in- telligence committee had re- placed the C.I.A.'s National In- telligence Program Evaluation staff, which was headed by Bronson Tweedy and Thomas Parrott, two key aides to Mr. Ilelnis who, The New York Times reported last week, were ordered to retire by Mr. Schles- inger. The Times also reported that Thomas H. Karamessines, Mr. Colby's predecessor as director of the clandestine services, had been ordered to retire by Mr. Schlesinger. Agency officials disputed that account today and said that Mr. Karamessines had in fact requested' retirement last year but had been asked to-stay on. . , u." Karamessines has been in ill health for some time. The appointment of Mr. Colby, a Princeton graduate who 'began his intelligence ca- reer with the Office of Strategic Services in World War II, was more favorably received by many senior Intelligence offi- cials, "He's the classic old espion- age type," one intelligence analyst said of Mr. Colby. "The kind of guy who never attracts attention." Other sources questioned whether Mr. Schlesinger's ap- pointment of Mr. Colby would lead to a widely expected shake-up of the . clandestine services, which attained notori- ety in 1967 with the disclosure that it. Was secretly subsidizing the National ? Student Associa- tion. rHs/Hcj-~G.+Z- Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 tvr y 'r"-* Approved For' elease 20~' l P84-0049 00200050001-9 New CIA UY17 ? Shaking Up Agelley The new director of the Cen- tral Intelligence Agency, act- ing on orders from President Nixon, is making major chang- es in the CIA's hierarchy, it was reported today. The New York Times and NEW YORK, Feb. 24 (AP)-imer deputy to Helms, and The New York Daily News said It had been learned from sources in Washington that CIA Director James H. Schles- inger is attempting to trim bu- reaucracy, and that four key officials already have been singled out for early retire- ment. . Schlesinger replaced Rich- ard Helms, who was named ambassador to Iran. Both newspapers identified two of those who are leaving as Thomas I-I. Karamessines, director of clandestine serv- ices, and Laurence Houston, the agency's general counsel. Also leaving, The Times said, are Bronson Tweedy, for- Thomas Parrott., a deputy to Tweedy. The News said only that "two aides close to Helms" were leaving. The Times said the four men it named had been told, in effect, to' retire within) weeks, although none has, reached the agency's manda-I tory retirement age of 60. 1 One source said the issued behind the dismissals was; growing disenchantment byl the White House. with the) agency's failure under Flclmsl to monitor and supervise' spending and policy, The! Times said. I White House sources -would) not comment on the shakeup, the News reported, other than saying that President Nixon "placed no restrictions on Schlesinger. He just told him to go in and run the place. There have been a whole hand- ful of resignations." Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 NEW YORK TI,,:J 5 FEB 1973 Approved For.,$elease 2001'/12/04: CIA-RDP84-0049$000200050001-9 C.I.A. & F. B.1. New Brooms At -the Top Things have been stewing recently at the top- in two key Washington agencies-the Federal Bureau of In- vestigation and the Central Intelli- gence Agency, and last week there were some fresh bets of steam. ? Senator William Proxmire, Demo- crat of Wisconsin, charged on Friday that L. Patrick Gray, acting director of the F.B.I., violated Federal law by re- maining in his post more than 30 days without Senate confirmation. He called upon Mr. Gray "to stand aside at once." Mr. Gray, named acting head of the F.B.I. on the death of J. Edgar Hoover last May, was not formally proposed for the permanent job until last weekend. ? An enforced exodus of high-level officials was reported under way at ? the headquarters of the C.I.A. where a new director, James R. Schlesinger, has recently replaced Richard M. Helms, now Ambassador to Iran. In- volved in the reported ouster were four aides closely identified with Mr. Helms, including Thomas H. Karames- sines, director of the agency's clandes- tine services, the so-called "dirty tricks" department. None of the men affected has reached the mandatory retirement age of 60 and some are said to be outraged by Mr. Schlesinger's decision to seek their early ouster. Others were more phlegmatic. "I plan to improve my golf game," said one. proved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Sunday, Peb. 25,1973 1 TILE WASHINGTON POST New CIA ' Director Shaking Up Agency lY?I;W YORK, Feb. 24 (AP)- mer deputy to IIelms; and l The new director of the Cen- Thomas Parrott, a deputy to l tral Intelligence Agency, act' Tweedy, The News said only ing on orders from President that "two aides close to i Nixon, Is making major'chang- Helms" were leaving. es in the CIA's hierarchy, it The Times said the four was reported today. men it named had been told,I The New York Times and in effect, to retire withinI The ? New York ? Daily News weeks, although none has said it had been learned from reached the agency's manda- sources in Washington that tory retirement age of 60, CIA Director James R, Schles- One source said the issue, anger is attempting to trim bu- behind the dismissals was reaueracy, and that four key growing disenchantment by', officials already have been the White House with they singled out for early retire- agency's failure under Helms ment. to monitor and supervise Schlesinger replaced Rich= spending and policy, The' and Helms, who was named Times said. ambassador to Iran. White House sources would' Both newspapers identified not comment on the shakeup,; i two of those who are leaving the News reported, other than as Thomas H. Karamessines, saying that President Nixon director of clandestine serV- ,placed no restrictions oat ices, alit] Laurence I16usto11,t4itlasiitrr, Ile Just. told hint the agency's general counsel. to go In and run the place. Also leaving, The Times There have been a whole hand said, are Bronson .Tweedy,, for- ful of resignations." HS/ITC- J/ Ap roved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 Approved For eleast 20ail i'2/444 r,,giA?RRP84-0049 00200050001-9 2 FEB 1973 Washington, Feb. 23 (NEWS Bureau) = Central Intelligence Director James R. Schlesinger, active with blank-check authority from President Nixon, is conducting a top-level shakeup of the CIA that has so far seen a number of the nation's top spymas- ters retired or forced out. Knowledgeable sources t o l d TuE NEws today that among those on their way out at the supersecret agency are Thomas II. Karamessines, chief of all clandestine services, and Lau rence Houston, CIA general coun- sel. It could not be determined. whether either of these men actu- ally has been, or will be, fired by Schlesinger. But sources pre- dicted that both men would soon submit their resiginations or ap- ply for retirement. Anxious to Retire As head of "clandestine serv- ices"-the euphemism for under- cover espionage and sabotage - Karaniessines was said to have been liked by his men. He is re- ported to have been seriously ill recently and anxious to retire. Both Karaniessines and Hou- ston-as well as several other top level CIA officials-are nearing the agency's mandatory retire- ment age of 60. White House sources would not- comment on the shakeup beyond saying that "the president placed no restrictions on Schlesinger. He just told him to go In and run the place. There have been a whole handful of resignations." Ouster of Helms Following persistent reports of White House displeasure over alleged unrestrained growth of the CIA bureaucracy, Schlesing- er's predecessor, Richard M. Helms, was eased out last year. Ile subsequently became ambas- sador of Iran. The President then named Schlesinger, -chairman of HS/I to replace him. Sources close to the intelli- gence community viewed the CIA shakeup as a strong indication that Nixon put Schlesinger in the job to Brune the agency's multi- layerecY hierarchy quickly. One former agent termed the action "a very- healthy sign." "The first thing it does is to c'ean up the entire nest of Ivy Leaguers who have been running the place for years," he said. Inferior Work Seen Critics of the agency, including former agents, have charged that the I ntelligonce community has grown so unwieldy inn the last 10 years that the U.S. is now getting ,it-, intelligence product that is inferior to what it got a decade a,e with fewer agents and less sophisticated spying equipment. Fources close to the Senate armed services committee on cen- tral intelligence noted that in recent days "there has been some inclination from the administra- tic,'i that. there would lie some clian,?es in the top CIA jobs.". The resignation of even a few top-level agency figures is sig- nificant because of the reper- cussions each departure will have on scores of people in what one source termed "the unoffi- cial CIA pecking order." Feeling Shock Waves Already the shock waves are being felt in the agency, as at least two aides close to Helms who worked in his office are re- ported. to be leaving. Administration sources, while Coll firniing? Schlesinger's blanket authority to run the spy shop as lie wants, noted that Schlesinger has not sought to conduct a mass "purge" of the CIA but rather to east several high-level types out and let their subordinates follow them out the door vol- untarily. Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 By FRANK VAN RIPER I Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9 their own request. Another source said; however, that "the CIA never fired anybody before like this. It's extraordi- narily brutal." Schlesinger, a former chair- man of the Atomic Energy Commission and former offi- cial of the bureau of the budg- et, has a reputation as an ex- c e 11 e n t administrator. He spent 18 months in 1970-71 working on a high-level White House analysis of the intelli- A-3 gence community and its pro- grams which was said to have been personally ordered by Nixon. It could not be learned wham Schlesinger has named, if anyone at this point, to re- place the ousted men. One old CIA hand who is believed to be staying on with added authori- ty is John Maury, the legisla. tive counsel of the agency who formerly worked as a chief of station in Athens, Greece. the CIA in London. eThomas Parrobt, a deputy to Tweedy who has worked in various positions on the CIA headquarters staff since the early 1960's. e T 1- o in a s Karamessines, director of the agency's clan- destine services, the so-called "dirty tricks" department, which is responsible for both espionage activities and covert intelligence operations. e Laurence Houston, the gen- eral counsel of the CIA who has been involved in a number of highly publicized disputes in recent years, including the successful -attempt to suppress - before publication - abook written by a former CIA offi- cial, Victor Marchetti. Knowledgeable sources said that the four men were fired by Schlesinger, who replaced Helms less than three weeks ago with what was said to be a mandate from the White House to streamline the CIA. Helms has been named am- bassador to Iran. National Intelligence Program Evauation staff, a key intra- governmental intelligence re- view board, Tweedy also was formerly chief of station for By SEYMOUR IIERS1I New York Times News Service Four top officials of the Central Intelligence Agency are planning to retire within weeks in what some high-level officials believe is the first round in a major revamping of the agency under James R. Schlesinger, its new director. None of the men, all super- grade employes of the agency, have reached the CIA's man- datory retirement age of 60, but have been told - in effect - to retire, well-informed sources close to the agency said yesterday. Those leaving are: ohronson Tweedy, a former deputy to outgoing CIA chief Richard M. Helms. Tweedy served as director of the CIA's 1111', VJr" 11V 111'"' 1-A'Alm ~ `i'V Il4 ~re L l that the men had been ousted and claimed that the officials 1?wr' goonnnt. to" at Approved ForRelease 2001/12/04: CIA-RDP84-004998000200050001-9 2 3 FEB 1973 Joseph Alsop New brooms, as the say is, sweep clean. The new director of the Central. Intelligence Agency, James R. Schle- singer Jr., is an obviously vigorous broom. Normally, therefore, the large number of impending changes in the CIA's top personnel would not be of ni`uch significance to anyone outside the CIA itself. This is emphatically not true, how- ever, of the change In leadership that can be expected in the agency's huge hierarchy of estimaters and analysts. These are the people charged with giv- ing meaning to the CIA's vast daily in- come of raw data. Theirs is a crucially important job. For it is of no great use merely to know, for instance, that the Soviets have a huge missile called the SS-9. Defense policy-makers also need to know the missile's main characteris- tics, and therefore its probable pur- poses. The government, of course, contains other estimaters and analysts outside the CIA-in the Defense Department, for instance. But the CIA hierarchy is the largest and tIi most powerful of all. And it customarily provides the chairman of the Board of National Es- timates, at present CIA veteran John Huizenga. The point of this long explanation is, quite simply, that the CIA's estima- ting-analyzing hierarchy has long had a "line" of its own, which might even be called a marked historical bias. An extreme case is one of the very top men, reportedly soon to depart, who was aggressively and successively wrong about the Soviet re-invasion of Hungary; about the Soviet missiles In Cuba; and about the Soviet invasion of Czechoslovakia. Departing CIA Director Richard Helms is far too wise and tough- minded a man not to have observed this peculiar historical bias in so large a group of his former colleagues and subordinates. To give one example, he has always taken the Soviet. military build-up on China's northern border with the utmost seriousness. He has al- ways regarded it, in fact, as the very opposite of a mere empty and expen- The CIA: A `new broom' is sweeping it clean. and has only partly retreated from that view to this day. Thus in 1969, the official national estimates downgraded the Soviet build-up so completely that the facts had to be brought to the at- tention of Dr. Henry A. Kissinger by a dissident China-specialist, who was about to retire from the State Depart- ment. Whereupon the Soviet build-up became the mainspring of President Nixon's intricate balance-of-power di- plomacy. It may be asked, then, why Helms, as CIA director, so long tolerated the bias of his analysts and estimaters. The an- swer appears to be that Helms, a great bureaucrat if ever there was one, had an institutional need of another kind. His estimating-analyzing hierarchy had always been broadly gloomy about the Vietnamese war, albeit grossly er- roneous in several key factual esti- mates about Vietnam. At the opening of President Nixon's first term, a vio- lent attack on the CIA was developing from the left, both in Congress and in the press. The attack from the left was parried, and then caused to cease, by letting it be known=quite truthfully- that the CIA's Vietnam projections had always been the most pessimistic that were made in the government. The factual errors were not men- tioned, of course. This role of the estimating-analyzing hierarchy as the CIA's shield on the left is most unlikely to have escaped President Nixon's sharp eye. It is an informed guess, in fact, that while the President always much admired and thoroughly trusted CIA Director Helms, he strongly objected to the spe- cial historical bias of Helios' estima- ters and analysts. As a new broom, therefore, helms' chosen successor had the President's backing and encouragement. Without explicit faith the sweeping clean could hardly be done to thoroughly by new broom Schlesinger. Reportedly, CIA, Director Schlesinger is even bringing in from the Defense Department the most pungent and persistent single critic of the CIA's estimating-analyzing hierarchy. This detested figure is, in fact, to be named the new head of the hierarchy, unless present plans are changed. This bold stroke is even capable of producing a considerable political rum- pits, Among the leftwing Democrats in the Senate, in academic-intellectual cir- cles, and indeed in the newspaper busi- ness, there are a great many people with a longing for reassurance. They lon to be told that the, historical proc- ess, so harsh for so many millennia, has been miraculously defanged in the age of the H-bomb. Rightwing tampering with "impartial Judgment" will no doubt be charged. But about those "Important judg- ments," the Czechs and the Hun- garians know better. ? I973, Los Angeles Times live parade of Itus 01??fteleas -RDP84-00499R000200050001-9 tract, the CIA esti z n, 1 ~HC- erarchy long dismissed the soviet mili- tary build-up as "strictly, defensive," FREE PRESS 1 1-3 119731 M - 530Aff4oved For Ruse 2001/12/04: CIA-RDP84-00499RQQP200050001-9 S - 578,254 WASHINGTON - Of all the brains washed in the whirlpool of the Vietnam war, those in the Central Intelligence Agency have come out, well, relatively clean. Early In the war, according to the Pentagon Papers, the CIA said that the domino theory - the belief that a communist takeover in South Viet- nam would lead to the fall of San Francisco -was hokum. When the Pentagon was telling us that all the fight was about out or the North Vietnamese and the National Liberation Front, the CIA was not so sanguine. And long before then Secretary of Defense Rob- ert McNamara was admitting it in public, the CIA was saying that bombing would not significantly hamper the ability of the North Vietnamese to fight. All of which means that when the CIA wasn't too busy on other intrigues it was right on its assess- ments of the war, at least some of the time. And It displayed some Independent thought. But even that limited record of success may be jeopardized in the future, says Rep. Lucion Nedzl' of Michigan, Democratic chairman of the House subcommittee which oversees intelligence opera- tions. Ncdzi has spent more than a year in a private, intensive study of the nation's intelligence organi- zations, especially the CIA. And now that its director, Richard Helms, whom Ncdzi considered a professional with no political axes to grind, has been banished to the deseft - as ambassador to Iran- the congressman wor- ries that the White }louse is about to "compromise the integrity" of the agency. MORE SPECIFICALLY Nedzi and other mem- bers of Congress are concerned that the agency may become a handmaiden of administration and Pentagon policy, telling the White House only what it wishes to hear. C> Several members of congressional Armed Ser- vices conuni!tee. including Ncdzi, know how the While liouye and the Pentagon have juggled their own inlcllis;ence estimates of Soviet strength - while ignoring more accurate CIA figures - to justify requests for new weapons systems. HS/HC- ~~z l CU' t:/ E Ili tJ Well, the ACM has all but sunk from sight -.and so has the threat of the SS-9. Evidence that the White House may be moving to take over the CIA for its own purposes came to Nedzi last year when the President announced an Intelligence reorganization to increase efficiency and eliminate waste, duplication and some inter- agency feuding. Nedzi concedes that more co-ordinating and re- organization may be necessary. But he learned that none of the agencies, not even the CIA, had been consulted about the reorganization. Indeed, the CIA, which knows some of the most sacred secrets of our sworn enemies and other foreign governments, knew so little about the re- organization plan that it had to learn, about it by sending out for a copy of Newsweek. The White House, when it announced the reorg- anization, kept secret the name of the man who planned it. It since has been learned that the au- thor of the plan was James R. Schlesinger, Helms' successor. Schlesinger has assured concerned members of the Senate Armed Services Committee that the CIA, under his directorship, will remain independ- ent. But skepticism remains... Schlesinger, with no background in intelligence work, did not talk with members of Congress or leading experts in the field before he wrote his reorganization plan. Presumably those were his Instructions from the White House. Schlesinger, at the time of the study, was chair- man of the Atomic Energy Commission, which under his leadership has shown no disposition to challenge the administration's unstinting support for more nuclear power plants - in spite of mounting evidence for a. more cautious policy. BEFORE JOINING the AEC, . Schlesinger, a Harvard graduate (no relation to Arthur), was as- sistant director of the White House power center, the office of management and llud get. An economist and a Republican, Schlesinger had been a? senior staff member of the RAND Corp., a Pentagon think-tank in California., and later direc- tor of strategic studies there, before joining the administration in 1969. At RAND Schlesinger was chiefly concerned with problems of budget and management in gov- ernment and was an. admirer of McNamara's cost-effectiveness-system analysis approach. Nedzi figures the CIA ,irid other inlellicrnce out- For example, there were the frightening Defense fitr could use it super.-manager like Schlesinger. Department eatinrttcs of the Soviet 55-9 intercon- But the congressman is concerned with who will tinrntal missllo, which were uscri as the irimo run Actual intt-Ili;!encc operations and iiolicy, and argument loAppro t FFidttd tt esMAt9112/04 : ~3t*4:tDR8 4-0(~i~tIt99R000,2A0Au~t O&U*, will vlsh to hear. vet! Approved For aIIease 2001/12/04: CIA-RDP84-00499ROO200050001-9 IDAHO FALLS, IDAFIO POST REGISTER J A N 7 1973 E - 16,150 S ?- 21,824 " The Editor's Notebook . . 'The Atom: Whither During 1973? What is the shape of the AEC's forhuae ing the same period was bogged down in a nationally and in Idaho, in 1973 and ensuing paradoxical quality assurance program that years? esteemed quality at any cost. The "any The answer may be webbed in several cost." has been time lost in research per.for- recent announcements coupled with some manse. hardening trends on the atomic front. The appointment of Robert Laney as the Nationally, the appointment of AEC acting director of Argonne National Chairman James Schlesinger to Z~Myi Laboratory -nay represent on one front at director, the kind of 7TTi B tt sucZ i+, least the continuing fixation of the AEC in Schlesinger, the appointment of a new acting quality-at-all costs and in the new era of director of Argonne National Laboratory, a engineering priority. Laney eptimoizes the legislative intent by Sen. Henry Jackson to outlook of Dr. Milton Shaw, the director of combine the 44 federal agencies now dealing the AEC's Reactor Development Division. with energy into one department, the grow- 'haw's quality-first objective is unarguably ing energy crisis itself, and the inevitable worthy. The only trouble is that it has suf- rumors which orbit around a new presiden- f acated the basic research which the nation tial term - all these are threads of future n w needs to embark upon its new respon- design. si b ility as this century's best answer to its Dr. Schlesinger was a high level, highly energy challenge. competent AEC chairman and one just get- While the government has for sometime ting into the grasp of his enormous task, Does assigned the "perfecting" of the workhorse the fact that he was resigned so quickly say water reactors and the gas-cooled reactors something about the weight the White House to industry, there is still-some question puts into the AEC and its fuuture? The calibre among scientists whether industry can;r and background of the new appointment to properly do this at this crossroads in harE Scfalesinger's seat may tell its something. nessing the atom. For one thing, there is still The growing energy crisis has exposed some question of general safety left which several defects in our government's plan- would seem to be the province of the ning and record. First of all, the people are "overnment. Secondly, there is question largely unprepared for (lie shocking reality "*~ir'hther there should still be some indepen- that in just a few years, with or without "i'Mitgovernment monitoring of the utility extensive incentives for oil exploration, the industry's safety reporting and safety nation will largely be dependent on foreign research. And maybe this independent supplies for oil. Our voracious oil technology government entity should not be the AEC, in is going to have its technical substitute, fact? There still appears to be a respon- however gradual this is. sibility for government research in this field At the same time, the energy crisis has of some sort. revealed for a larger national audience that The Liquid Metal Fast Breeder reactor the AEC has not gone fast enough and far concept (LAlti'BR) has been an AEC enough in perfecting nuclear power reactors progeny for some time and the AEC has despite a very impressive course record in made strides in getting the concept where it proving nuclear power. Gy'hile it has defini- is. But it never was a crash program and the tely been proved as the best energy alter- government-industry partnership which is native on the horizon, the research has not now being pursued for the breeder still does ctemonst-rated the kind of perfectibility in not measure up to a crash program. Perms of safety and waste handling that the The government talks of getting breeder people are demanding. . reactors shaken down to needed efficiency in More is being asked of atomic energy in . 20 years or more. And this kind of timetable terms of safety than any evergy ever laid at when the government is being forced to use man's feet. The AEC has an amazing safety coal plants to bring air pollution to its record and, unquestiouahly, atonic energy southwest parks and to invite the prospect of itself is quite safe. But he cause of its ex- brownouts and blackouts in big pockets over traordrnarvpotentialfor an extraordinary or the nation. "incredible" accident, sonic voids in safety Moreover, there is some uneasiness as proofing remain to be done. well that lire AEC is putting all of its eggs iu Arid many close to the atom's genesis feel one basket when the ;as cooled breeder that Iris could have been accomplishers if the reactor, for one, is getting hint token con- AEC had the same kind of tanrrihrg and sup- sideration by comparison. And the final tila- M11M' I'(i fl5steightyears-TheVietnamwar Lean in energy efticierncy, Iunion, is not a years -- ` ? it had the first decade of its crash prograrn now either. histor Moreover, IiAO' ' dd'Fo 1R64ease 2001/12/04: CIA-RDP84-00499R000200050001-9 HS/Hc- con11-in -o'd And yet the AECf4p mg0.-Fqr a 2001/12/04: CIA-RDP84-00499 00200050001-9 nel, has so much to offer ... if the fertility of mind and technology were fully reieas.ed. But how will this release come in a proposed new Energy Department? will it. be further diffused pro rrantmrrtieally'~ C) will it be defined and given priority'? 'flies-.' questions now must be placed against th background of a, president who has placed the highest priority on anti-inflation, which may find research monies for energy stalled again. As the annual report of the Idaho Open t- (ions Office of the AEC reflected recently, the Idaho site has done remarkably well in maintaining a reasonable level of operation at a time when fund sources have been shrinking for practically all other atomic installations. While personnel levels have more recently been fortified by an unusual increase in Navy trainees, the Idaho site has lost people decisively less than other ins- tallations. INlorever, it does have diversity in programming in its five basic programs. East Idahoans must hope that decisions in the political sphere continue to value the Idaho site. And as the AEC report stated, the future will depend on how the Idaho site's performance measures up .. . but not en- tirely, tin fortunately, on performance. Poli- tics, both bureaucratic and congressional, is involved. The Idaho's future may depend just as much on how much the Washing, ton D.C. strata of the AEC allmvs the Idaho site to release the ferment of its own capability. The bureaucracy has not encouraged this research ferment in its engineering emphasis the past few years. Maybe 1973' may also see a proptious wedding of en- gineering and basic research in the public interest. Approved For Release 2001/12/04: CIA-RDP84-00499R000200050001-9