COLBY PLANS CHANGES IN CIA EVALUATION UNIT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84-00499R000200050001-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 57
• Document Creation Date: December 12, 2016
• Document Release Date: October 3, 2001
• Sequence Number: 1
• Publication Date: August 22, 1973
• Content Type: NSPR

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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,.
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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
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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
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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.
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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
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conscience sufficiently to apeople like McCord a'nd
don t',e blue surr.ical Cau.fiv d, because t11:' is
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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-,io.se 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.
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NEWS-SENTINEI
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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.
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- 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
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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.
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 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
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 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,"
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 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 f.gr~Re,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. ~'~ , 1M.cd , , 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.
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 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
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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.
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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.
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I
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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."
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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
"
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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.
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[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."
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'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."
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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.
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c uali1 ~:i~ c ' 0 .. I can
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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
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 The new CIA director is
also : to believe that the
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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.
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 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.
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 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.
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 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."
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 NEW YORK TI,,:J
5 FEB 1973
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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.
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 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
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 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.
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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!
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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.
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