STAFF MEETING MINUTES OF 16 JUNE 1981

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00130R000600010386-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 20, 2016
• Document Release Date: October 29, 2007
• Sequence Number: 386
• Publication Date: June 16, 1981
• Content Type: REPORT

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SECRET
MEMORANDUM FOR THE RECORD
Staff Meeting Minutes of 16 June 1981
Admiral Inman chaired the meeting.
noted that a couple of FY 1983 program submissions
due but he expects all submissions to be in on schedule.
16 June 1981
are still
Fitzwater raised the issue of continuing to answer telephones by office
identification rather than by telephone number. Fitzwater said that the DDO
has requested that we return to the old system whereby phones were answered
with the extension. Admiral Inman asked if there was a need for uniformity
throughout the Agency, e.g., whether General Counsel or Legislative Counsel,
which have many outside contacts, should not continue to answer the phone
with their office designation. Briggs said that a decision should be made
soon on this. Admiral Inman said that he is not prepared to make a decision
yet but will look at the problem within the context of what we have to do
to improve internal cover. He said that this issue would be considered by
the Executive Committee.
Briggs reported that he had been asked by OMB about the role of the
Inspector General within CIA. Briggs thinks that OMB may be considering
making the IG position a political appointment. Admiral Inman said he is
opposed to this and that only the Director and Deputy Director are political
appointments within the Agency.
Sporkin told Admiral Inman that he would have a clean version of the
draft Executive Order 12036 to him by noon to get his decision about send-
ing it to the NSC.
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? CONFIDENTIAL
announced that the Director will appear before the Senate 25X1
Foreign Relations Committee on 18 June to discuss the Israeli raid against
the Iraqi nuclear reactor. said that Hugel is scheduled to brief 25X1
the HPSCI on current findings and the SSCI on the Laos o eration and why
the Agency did not inform them about the operation. added that 25X1
Admiral Inman is scheduled to appear before the Senate Appropriations
Committee on 23 June and will testify before the House Education and Labor
Subcommittee on Postsecondary Education about the foreign language program
on 15 July. 25X1
McMahon noted that the IG on SALT long-range planning is having a big
impact on NFAC. He said that many requirements are being levied and that
essentially what the IG has done is take the Administration back to square
one on SALT.
McMahon noted that the Director has approved some new priorities for
DCID 1/2 and that this will have an impact on NFAC in the future.
Hetu reported that the unclassified annual terrorism report has been
issued.
reported that at the Levinson Seminar which he attended last
week, he noted that there is a great deal of anger and frustration among
the SIS'ers because of the paycap. It was noted that the Director will discuss
this issue with the President and try to redress this problem coincident
with the 1 October pay raise.
Glerum announced that he is convinced that by the end of fiscal year
1981 the Agency will be at or above ceiling.
Hugel initiated a discussion of the New York Times Magazine article of
14 June (attached) on Terpil and Wilson and noted that the Director had
asked him to initiate an investigation into the background of this case.
In response to Admiral Inman's question Briggs said the IG had conducted a
thorough investigation of the case.
Admiral Inman noted that he is pressing on with studies of the organi-
zational structure within the Agency and that the Director is thinking
about how to approach certain management issues. Admiral Inman said that
the Director probably will put out some announcements within the next week.
Attachment
CONFIDENTIAL
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A.Ti I CLL. APPEAnD ilk. YORK TIMES MAGAZINE
?
? Ore P4GE_IX-----A 14 June 1981
By Seymour N. Hersh
ive years ago, two former
operatives of the United
States Central Intelligence-.
Agency? Edwin P. Wilsonl
and Frank E. Terpil ? made -
a. business deal with
Muammar el-Qaddaft . the)
ruler of Libya. In essence, :1
come partners- in-. an export-import
the former C.I.A.: men,, who had. be-
come partners-
agreedtaseU_ColonelQaddafi
their accumulated years of American ,
intelligenceagency contacts, experi-
ence and expertise. Theirs was a prod.:
uct that could not be purchased on the
open market. The colonel, who boasts.
of supporting terrorism in the Middle.
East, Europe and Africa and who has
been attempting to set up his own new
federation of Arab and Moslem states,
was willing -- and able; because of his.
vast oil wealth?to pay dearly.
As a result, -the two- Americans, ac-
cording to Federal investigators, have
made millions of dollars aiding Qaddafi
in his drive to export terrorism and
build his own. Middle Eastern power. -
Under cover of their export-import
business, Wilson and Terpil are said to
have helped Libya set up a manufactur-
ing plant for the production of assassi-
nation weapons; to have themselves
helped Qaddafi plan political assassi-
nations ; to have recruited dozens of for-
mer Green Berets to teach Libyan sol-
diers and Arab terrorists how to handle
volatile explosives?how, for example,
to turn ashtrays into weapons of terror; .
to have illegally shipped arms explo-
sives to Libya with the aid of forged and
fraudulent State Department export
Seymour M. Hersh, a former New York
Times reporter, is now at work on a
book about Henry Kissinger to be pub-
?
to have. involved other
',former C.IA. employees in their
.projects..
Information about the Qaddafi con-
nection has been known by the Govern-
ment Since the fall. of 1978. It was then
that-Kevin F. Mulcahy, at the time a.
partner. of Wilson and Terpil, ap-
,-proached the C.LA- and the Federal
Bureau. of _ Investigation with grave.
doubts about. the legality and ethics of
company's business dealings with-.
:Libya.- Mulcahy, a former C.I.A. em-
ployee who had spent six months _inside.
the ? Wilson-Terpil . operation, would
spend hundreds of hours, over the next
few years, providing the Government
with firsthand knowledge..
-1Cevirt Mulcahy has now decided to -
tell his story publicly for the first time.
Hes tired of waiting for this segment of
his life to end. He wants to be listed
again lathe telephone directory, to hold
a driver's license in his own name, to
vote, to own property; to stop living as
if he?and not Wilson and Terpil? had
been indicted for wrongdoing. He feels
he is forced now, in effect, to give his
testimony in the pages of The New York.
Times. The essentials of his accounts
have: been. verified where possible
through secret documents and in inter-,
views with key members of the State
Department, the Justice Department,
the F.B.I., the United States Attorney's -
office in Washington, as well as with
Turner, the former head of
Central Intelligence, and other high
C.I.A.. officials.
0
The Wilson-Terpil case is a story of
Americans who meet secretly in bars and
board rooms to arrange the illegal sale of
electronic-spying equipment and terrorist
weapons. and of Americans who train as-
sassins abroad. It is a story of an old-boy
network of former C.I.A. operatives and
past C.I.A. leaders who seem unable to
face fully the implications of the case. It
tells of a basic inability of the Govern-
ment's investigative and law-enforce-
meat agencies, disrupted by internal jeal-
ousies and feuding, to perform effective-
ly. It suggests that a moral climate exists
Inside and on the edges of the intelligence
community which results in the subver-
sion of national goals to personal gain.
Ed Wilson was running what
amounted to an updated version of the
military-industrial complex in which
- - former-C.I.A; and military employees
have puttheir Government experience, -
contacts and knowledge to use for large
personal monetary gain, regardless of
the damage they will do to their own
country. Such men have worked in
league with a number of American
manufacturers who have specialized in
working for the C.I.A. and other intelli-
gence agencies in supplying military
goods and highly classified technical
equipment Questions that should nor-
mally be asked ? Are the sales offi-
cially authorized? Are they legal? Do
-they jeopardize national security? ?
are not. Senior Government officials, in
recent interviews, acknowledge that
American expertise is being trans-
ferred abroad in unprecedented fash-
ion. The phenomenon, known in the bu-
reaucracy as "technology transfer," is
one apparent result of the declining mo-
rale inside the intelligence community
and the increasing profits available.
These officials say that nations such as
Chile, South Korea, Brazil, Argentina,
Taiwan, South Africa, Iraq and Paki-
stan have been able to purchase the
very latest American equipment and
technology in comniunications, mili-
tary arms, computer science and nu-
clear development ? with or without
authorization from the United States
Government.
The matter was intensively re-
rvels, inside the Carter
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Administration, with little progress. As
yet, the Reagan Administration has not
addressed the issue. In early May,. the
Administration did order the Libyan
Government to shut down its offices in
Washington, as part of the campaign
against international terrorism. But it
has not faced the- broader problem ?
the export of American weaponry and
expertise to terrorists. ? ? - -
Before the Federal prosecutors
brought their indictments in April 1980
in the Wilson-Terpil case, the file was
presented to Philip IL Heymann, then.
Assistant Attorney General for the.
Criminal Division.. Heymann, who is re-
turning this summer to teach at Har-
vard Law. School, recalls: "I was
shocked by what I saw in the Wilson
matter. The notion that there is no con-.
trol over an American intelligence offi-
cial taking his know-how-and selling it.
to the highest bidder seems to ?be in-'
sane. If terrorism is to be taken as a,
major national problem,"- Heymann
says; "we'll have to start at home and
draft statutes that would bar the sale of
fancy American equipment and fancy
American expertise fort terrorist pur-
poses- It won't be an. eitscri matter, be-
cause it's hard to put_ a lid on-the dis-
semination? of information. But this
question is exactlyn what. Congress ?
ought to be holding hearings on.r" ? ??
'
Federal authorities, in accepting
Kevin Mulcahy's story as accurate, ac-
knowledge that its implications are
deeply disturbing: Qaddatt obviously'.
has utilized the materials and expertise
of Wilson- and Terpil in his support of
such terrorist groups as the Palestine
Liberation Organization, *the Red Bri- ?
gad es of Italy, the Red Army of Japan,
the Baader-Meinhof gang in Germany '
and. the Irish Republican Army_ He is.
suspected of having ordered the. mur-
der of at least 10 political enemies in
Europe and the Middle East; two.
months ago, the F.B.I. arrested Eu-
gene A. Tafoya of New Mexico, a for-
mer Green Beret, and accused him of
an attempted asSassination of a Libyan
student at Colorado State University.
The Libyan is one of a growing number ?
outside the country who oppose Qadda-
ft's rule. When arrested, Tafoya, who
traveled to Libya three times last year,
had Ed Wilson's business card in his
possession with telephone and telex list-
ings in Tripoli, London and Washington
for one of Wilson's Swiss-based compa-
pies. Tafoya's links to Wilson are still
being investigated.
Colonel Qaddafi is relentle?Jsly anti-
Israel, supports the most extreme fac-
tions in Syria and opposes the moderat-
ing influences of Jordan's King Hussein
and Egypt's Anwar el-Sadat as part of
his campaign of political expansion in
North Africa. Qaddafrs ambitions
were strengthened early this year when
he successfully invaded Chad, seizing
an area believed to be rich in uranium
ore: The war also meant more profit for
Wilson, who has established his own
trading companrin. Tripoli, known as
Meprico; to- supply Qaddaff's army:
Libya, relying on its estimated 425 bil-
lion in annual oil revenues, is a major
purchaser of Soviet arms, and more
than 5,000 Warsaw Pact military advis-
ers are- believed ta be on. duty with
frvaddafi's 60,009-man army. - ?
?-?att ? -; fernier teigh-lipeed-e061011.3314C2-
110313 and computer-technology expert
In the C.I.A., Kevin Mulcahy was no in-
nocent when he came forward about the
way the export-import business had
worked. He had gone into business with
Wilson and Terpil ata high guaranteed
Income . Within three months,-Mulcahy
reaT3 zed . that, his partners were rou-
tinely selling restricted military and
m rn ir-AtirITIS _gear. Be _himself of-
fered. to sell such sophisticated equip.
meat as- second-generation computer
systems and coded communications
machinery-Mulcahy did not hesitate in
his talks- with the authorities to ac-
knowledge his own role in questionable
activities, which included the sale of
embargoed ammunition to South Af-
rica. In allot thesedealings, he says, he
believed or wanted no believe that Wit-
-son and. Terpil weresomehow partof a
/covert C.I.A. operation- .
? . Today-, Mulcahy is an angry and frus-
trated man. He believes his life is in
danger, a belief shared by Federal offi-
cials; and he is deeply disturbed by
what he regards as a monumental lack
of resolve; competence and communi-
cation within the Federal Government
in handling the case. It took nearly four
years to indict Wilson and Terpil in
Washington, on charges that include
Megal export of explosives, failing to
register as a foreign Agent, and con-
spiracy and solicitation to commit mur-
der. Despite fugitive warrants, the
Government has been tumble to appre-
hend them at a time when their travels.
In and about Europe, the Middle East,
Africa and the United States have been
observed by many people. Last winter,
more than six months after his indict-
ment, Wilson was seen by a business
friend in Blackie's House of Beef, a
Washington restaurant, with a group of
his former employees; it is not }mown
how he entered the country. Mulcahy,
meanwhile, has been forced to lead a
life of furtiveness. "I've bad five years
of indecision, contradiction and waiting
for the day that this chapter of my life
ends," ? he says. "The Government
keeps telling me, 'We're on top of it;
we're on top of it' " Yet Wilson and
Terpil remain at large, and many of
their operations, which clearly seem to
be working against the interests of
their own country and, indeed, world
peace, are believed to be continuing at
this moment.
Kevin Mulcahy, now 38, grew up vin-
tage Americana in suburban Washing-
ton: altar boy, Eagle Scout, varsity
basketball, class vice president He
was a son of Donald V. Mulcahy, a 28-
year-career senior official of the C.I.A.,
four of whose six children were also
employed by the agency. Kevin, the
oldest child, began working full-time
for the C.I.A. in 1963, after serving as
in airborne radio operator in the Navy.
He became a communications and
computer expert and worked on highly
classified programs that he will not
talk about today. In-1968, he resigned
?firTm the agency to take a position in the
electronics industry. There followed a
succession of increasingly responsible
jobs in the computer industry, a serious
drinking problem that drove him into
Alcoholics Anonymous, and a painful
divorce.
By the fall of 1974. Mulcahy had come
to grips with his alcoholism and, having
left the computer industry, began
working in Virginia as a counselor in a
drug- and alcohol-treatment center. By.
1975, he was trying to set up a se:ies of
halfway houses anikwas scrambling for
Federal grants. Mulcahy rented a
house by chance from a Barbara Wil-
son ? Edwin P. Wilson's wife. Mulcahy
became friendly with her and eventu-
ally was invited to dinner at the Wil-
sons' newly purchased, luxurious 1,500.
acre farm in Upperville, Va. Ed Wilson,
now 52, was well known inside the
C.I.A. as a skilled and trustworthy
operative. Wilson, who began his ex-
port-import business in the early 1970's
while working as a consultant bra top-
secret Navy intelligence- unit, had
played a rote in the Bay of Pigs and
other undercover operations in his long
c.r.A. career as a contract agent. MW-
cahy was impressed.
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' over dinner, Wilson made It clear, with the people he was: doing busines-S-4 CLA.-:was deePIT involved in its still
that he knew pretty much all there was with to impress theor that he-was stillf:. controversiat Phoenix . assassinatiorr
to know about Kevin Mulcahy, about- C.LA.," Mulcahy says. "He would sag..- program.-He? later .served
In
his former employment with the C.I.A. gest. he was still under deep colier."4 whert the C.I.A. was- assignedthe tasil:
and his current work with teen-agers. A Often on Friday nights, Wilson made W of interfering with the. Government of:,
few months later, Wilson made an offer - a point to go drinking at bars in subur.4 Salvador Allende Gossens.. .: . :7- T
Mulcahy would not refuse: If Mulcahy ban Virginia known to be after-hoursi ?,. Wilsonarrsuigedn meeting at Shack.4
would join his. arms-sales business in hangonts for C.I.A. officials-on duty at ley's home. ar few nights. later after
Washington and. remain for one year,. --the agency's headquarters. in McLean sir work?bringing along Mulcahy and an
he could then have as a bonus. a nine. Mulcahy, the new partner; began going': Ameriaan. FlarryRastatter, one of Ter-,
bedroom farmhouse Wilson also owned: along. "Lthought he was agency," Mul.? pirs business. associates who had. just.
and use it as a halfway house for trou-. cahy says of Wilson. t1 had =question; ,returnedfrom a business trip to Egypt.:
bled youths. Mulcahy's guaranteed: in my mindr .- ? ? , .::' 7' ::.., .;.:.7.::'". li Turkey. and Irato...:Rastatter had ob.7.
$50,000 annual income would be supple- -.?A few days after the new partnership tained?sorne..information. from Savalc.';
merited by commissions and expenses.'. -was formed', Mulcahy discovered sales" the:Iranian.; internal; police-, :and ,was
"I had no suspicions at all about the ,orders showing. that Wilson ancl.Terpiii :!willing to-pasS it along:to the C.LA.;
job," Mulcahy recalls, and be began. ? ? werein- the process of selling machines ,Shackley? was introduced by Wilson t&.
working hard- "I was putting in 18- guns and silencers-to an arms dealer in ' i.Mulcaliyand?recalted knowing his fa-;
hours a day at first, dealing with 10,000 ?Zambia.. He was bothered by thesale of! . _ther.whis eirnectthe-National 'Intern...
suppliers and. inquiries about canned . me silencers for hekoew they had onlr :-gence Medakthe agency's highest. re-:-
I food.. Parachutes ?any kind of equiP7c. one purpose? killing without drawing . -ward? before retirement'. There was-
from maChi-n-ei-to .airt:i.Sif' : f attention to the killer: He-telephoned . -tallt abouL military- and. Intelligence
There was no- reason for suspicion in . the F.B.I.: and: later showed copies of :needs ittlrati; Turkey and Libya. Wit.
those weeks." Most of the business was' .the sales orders to agentsin the Bureau,. -son: told Shackliy. that: he and Terpil
aboveboard 'and involved' the sale- or of 'Alcohol,. Tobacco. anct-L. Firearm* : were planning to travel to Tripoli and.
highly technical equipment.' Mulcahy: :(B.A.T.F%); one of whose functionsitisi ,meet with- Qaddaft.. "By now I'm eon-
was responsible for arranging export li-. -to monitor illegaLarms? deals and re:. '.vinced that thewhole thing is an agency
ceases, international letters. of credit' porton impendingsaks-He alsoaskeik : front.'... Mulcahy recalls. "I thought Ed
and shipping, and also for determining'. ? about his new partner m The authorities! ...was in bed with the C.LA," Some Fed;
'
which. manufacturers' ..:-? - equipment.- ? said that the sale to Zambia was legalt Aral-officials say they are-still itivesti;
would meet .the specifications of the-and that they had no derogatoryinfor4 ;gating Shack erspersonat and fizian-
order-. . .. - . .- . ?.:-.-1,::::,,: ?-?-?-?':.-'::,.?:', ..--',?:?'::`, ? , mation about WilsonandTerpil-in,their" .:;cial involvenientwithNirelson. Shackle)*
? Mulcahy obviously gniSed MUsten, in: files. ,.1 said to rnysilf,:tbrisi,:thls hen-. ::.has. acknoWledged. to. Federal author'-
the early spring of 1978, Wilson walked - got to be an- agency- operation.':."-Mnl -7:
Aiesithatthe meeting described by Mul-
him to another office- a- few. blocks': cahY recalls.- !"These guys-are buYin&l. ',;calloy as. well as- other meetings with
away, in downtown. Washington, and In-- and selling silencers, and the-.-F.R.r., i- :;.-Wilson did take place, but Shackley in..
traduced him to Frank Terpil. now.41,..-. and B.A.T.F. give them the O/C:So rm.:: 'isisted that at no time did WiLsortreceive
Terpil had served about seven years as-I' feeling pretty goOd: rd gone to theFect.1 *any authorit7 or. sanctiorr from the
a communications technician for the-. . ex-al authorities;: shown . them: docu-; cCLA- for his work in Libya. He-said his
C.I.A. but was forced to resign: in 1971 merits and they said Wilson and Tempi:4 '.:contactiwithYrdson were solely for the- -
.. . ,:-.
_after a series of embarrassing private- were-clean."... purposeaf obtaining any stray bits of
escapades, Including an attempt to - ? ;.inteWgence WilSCU might have picked:
smuggle contraband liquor into India. .
, ? . . ? -., up:Nilson and Shackley had worked to.- :
Unlike-Wilson, who mingled easily and - Wilson's:contacts seemed ineichaust.; :gether in 1960-on theBay of Pigs opera-
effortlessly with senior C.LA. officials, ible. Ed Wilson was friendly, as Mul.4-:. ;dom.,: Shackley,; in an interview, con;
- corporate -executives -and -important tally and. Federal investigators- were i :firmed Mulcahrs account of. the meet-,
members of Congress, the Brooklyn- later-to learn, with many senior legisla.i ingancl said that he, like Mulcahy, was:_ -
born Terpil was a street...1.9#.4-atur who. tors, 'including Senators- Strom Thur-i tmaware then-of Wilsnt's plans for sup-
had been arrested twice for illegal trat...... mond of-South Carolina and the. late:. *porting- Qaddafi's terrorist program.
..fic1441.,,,,* in arms. Mulcahy knew nothing .Ta...s. L.:McClellan of Artansas and; Shackley said his purpose in talking to. .
about Terpil except that he had worked . Representative Silvio 0:: Conte of Ma's:: ;unison and Rastatter was to collect in.'
overseas for the C.LA.-. , ... sachusetts?-? He could: telephone a con.4. formation front non-C.I.A. sources. "I
?
The three men agreed to set up a new tact in . the - Internal Revenue Service ..i .taliced to them solely not to be a captive
company,: to be known as Inter-Tech.. and. within 15 minutes have intimate-' of the system." he said. "Wilson was a
nology Inc., forthe specific purpose of- ? financjal details on a potential custom...! .guy who knew about a lot of things. He ?
selling 'high-speed communications ! er. He was able, with a telephone call teiT. ? was a good contact."
gear and computers to foreign coun-.! , -Washington's police- headquarters, -to--j f -..After the Shackley meeting. Mulcahy-
tries. The equipment was legally pur-- obtain. registration information on a..-:' .was brought into the Libyan operation.
chased from American companies. , local automobile license plate.But . - Muammar el-Qaddafi had-placed a pur-
Each man was to bea one-third partner' sometime in late May of 1976, Wilson:: chase. with Wilson and Terpil for
of Inter-Technology, which, it turns ?: went a step further: He telephoned , ? . hundreds of thousands of timers capa-;
out, was one of scores of Wilson-Terpil. Theodore G. Shackley, a. prominent.' .ble of detiyongaetini: explosives
companies scattered in corporate i .C.I.A. official who was than serving as . .e.Wgarisnantlide:
records throughout the United States the assistant to the-deputy director for ..Terpa .-clid not ten MUlcahY; hOWe'Ver,
and Europe. . clandestine operations ? one of- -the
-- there-al purpose of the devices; instead
If Mulcahy had any doubts about his ? most powerful posts in the agency.- . he- was led to believe that Qaddafi
new job, he suppressed them by belie-v..' Shackley was renowned for his tough- ? needed them to clear mines from har-
ing ? or wanting to believe ? that Ed' ness and efficiency as a station chief W.- i hors and battlefields by safely blowing
? Wilson was still linked to the C.I.A. "Ed . Laos and in South Vietnam during the . , them, up. The mines. so Mulcahy was
would paradehis contacts in the C.I.A. height of the Vietndro War, when the - - .
172< 9-
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tol& had been left from. the 1973 Ara
Israeli war. The timers- were to
demonstrated to.Qaddah'ssenior mi
tarp- and intelligence aides that June
Libya, and Wilson and Terpil had
find an ininiediatemanufactuer. well They
decided to exploit a long-time CIA-
contractor. the American.. Electroni
Laboratories of Colmar. Pa., and Falls
Church. Va., which had routinely been
providing the agency with some of i
most highly classified electronics ancl.
communications ger.. -1: ? ?
American Electrmdc-was a logical.
*starting place. In May1976,.Wilson had
visited the company's plant in Falls
Church irrarr effort to-persuade its offV?
cers-torretaio hirfirm. to represent its-
'products around-. the' world:. Wilsore?
brought. Mulcahy!: and -Terpil, to the
meeting, as well asan active C.LC.I.A.::
em-
ployee, Petry- E.-Loomis:an: agent asas..signed to the-Far East WhOWaS operat-e.
ing under cover for an, aircraft compa--
ny. One of. Loomis functions was to
serveasalialsorsofficerbetween C.LA- ,
headquartersand its overseas stations;:':
hewas responsible for establishing per. -
sanal relationshipswith senior military
and Government" officials la the Far
East. Loomis added.. credibilityrk in. Wil
son's pitch. !ITerpil, was there to ix6;.
press them with his contacts in the P,fic14...
die ast,:_?
was the -r-e- for Europe and Lopraiit forl
the Far East. I was there because it:
was told to them that I was ex-C.I.A.
and. would remain orz-site? and
ble while the others traveled.". ? 4
? Loomis, who had been illegally
lighting for Wilson for some time, was !
one of dozens *of former. Government
employe who had been recruited by- ;
Wilson and TerpiL Government investi7,1
gators havelearnerlthatWiLson's tech--1
nique; as. utilized. 1n his approach to.:
American. Electronic, was: to seek out '
intelligence and military officials with
close relationships, with both vital sup--
pliers and foreign governments.. These
men . would be retained to sell goods?:i
ranging fromfromcanned foods to weapons,,
to those foreign countries. Income tor;
his salesmen, as we as for Wilson, was
_ ? . _ ?
extremely high, in part because the'
sales were often contingent on under--;
the-table kickbacks to- Wilson's coni.-
pany and to foreign officials.
No agreement was reached between
Wilson and senior officials of American
Electronic at their meeting. but Wilson
and his associates were able to leave
the impression that their work was not
only highly profitable but also had been ,
officially sanctioned by the Govern-
ment. /n June, When the 10 prototype
timers were needed, another series of ;
meetings was set up in a Virginia bar ?
involving three of Wilson's employees,
b.7alcing Weisenourger; then
be,. 'air active?dury CI.A. official,. and. two .
employetootArnerican.Electranic? one;.. ?
Ut,-.'oftwboszt.-was. another C.LX: official,?,
to i the-working under; cover: -
'burger and, the American Electronic"
i Men agreed to work privately over the
C. weekendto produce 10 prototype timing:,
devices- at the inflated, cost of $1,500?
each (10 times the actual cost). Federa1!
authorities: later concluded that these;
men knew that there had. been-no offi-i
?
elak .C.LAr., authorization_ for: the job,-4
and that senior officials of American*,
_Electronic?had not known of the intien;.
lighting. It. was a. project that in: thei
'Months ahead struck Mulcahy as.wildly
irostimEeknevr that Many of the:Com-3
panles*: senior official.S..were,"?lewislii
ta-nrk he now: says, "yon can bet they
?youldratdetanything
?
tt:tasie
of. life 1nternationattsalesman4
"and:is was good. In -June,.he irke- to;
England toset up an exhibitiotiafek
show at Brighton -rOomti
Were first. clasi.. So wasthelfozicand?.4
there seemed to be a constantserfeS
artier,and partyOniot MulcA-'!
..lry!s.. first customers it the SecuritY?:
.ihoviWas a Syrian Company; Abdalialt;!
Engineerzn&. which was illterestedf-irg
. :purchasing high-speect: commuril
tions. equipment ? gear ao:sensitive?,"-,
Mulcahy. _thought, that the State'net4
partment would never- perinit itsex
. port. -"Frank told me, `Donit. worry4
: about it We-don't need' licenses.lust.;
get thesorder;" '1" Mcahriecallszt'llir:?
nowitivaitiliViEfulithat Wilsotrandaerf.,;
;.-pil.hada wide Latitude fortheagetieV! ? ;.";
Tkeegizioznent_includedencodbrade;
'Tice& and radio monitors capable-of :
tracking,: interceptingancFkiterpeetine:
encoded signals. There wasa ifleetingi
with. representatives- of. the Irish:-Rew
publicarrArzny; who wanteciAmerican; ?
made M-16 rifles.. Mu l catty learned-that
such weapons could be found izz plentkz
ful supply; North Vietnam had sold- its;
surplus weaports?seizedin huge quan-t;
titiesafteritsarrny overran SouthrViet; -
=ant in- 1975 to Saniueltummings
Interarrnco, the European-based armsf
dealer-It was in England. ?
cahy says, that Terpil askedftinr if he, :
wanted to. earn $5,000 on his mum*
flight to Washington. by detouring; tot.
Cairo to deliver a "told gun,'.". onewit*
no identifying serial number. Mulcahy
refused to deliver the weapon, but
- .?
'learn ? months later that Qati-
t.clafi had provided re:pi' and.
!Wilsonr? with- a $1- million con-
fi tract to-assassinate Umar
dullah Muhayshi. a Libyan de-*
fector who had plotted to over-
throw Qaddaft's regime: The
.,..assassination assignment had-
.1been subcontracted. by Wilson-
-.;to- three-. anti-Castro Cubans in'
; Miami with whom he had once:
ivorked.? irr the C.I.A. "Frank
'Was playing both ends against.
. the-middle," Mulc.aby recalls-
,' "He was setting up- an elabor.
tate:security system; forrn the:
guy* in. Egypt- to protect him
while at....the same time trying
1:to bump him oft"
and:. Terpil got.
along well-and thetwo men ex-
changed many,. conftdenceS
? uring,.. their - -trips. together.
Frank.tendstotalk a lot; he
. pikes to name-drorti" Mulcahy
'What. charg- Frank's ?
? ...batteries., is.. the thrill of. the
?.c.haie; the excitement, being-
= the periphery of-power. He
thrives on it.' lir tithe, Mul-
cahy. said,. he came to realize
...that there was more-truth in
,rerpil's seemingly wild stories
harihehad thought, ?.
? Wilson is more discreet. and -
; far moredangerous; Mulcahy
7.said:1?Ect.is devious and am-
ning. and: he's living a lie ?
!;that he is the-most important
lutman, being-'alive t7 'Heir age".
. !;anything' to manipulate people_
'gr_r:.events, to?set them to. come
Z?telybrilhla. in the- way he
1.setsdeal u$ puts people to-
tgerbteer and, parcels out .infor-
E-TO :EA:compartmental-
" .izes; 4&.; triii* :Operation. the
.;SarrzeiraY the agency does. It
allows- tcr play both ends
s;.against the middle and come
.,out . the .winner..7. If Ed comes
? :Lbook. and,. goes-on trial; he's
!--going-to use every pit of infor-
imation-, he's ? stored' ' up for
years. to get the CJ fir court
-'enctput- the agency orzirial in-
''stead-- of Ed WiLern." 1i fact.: -
? -Wilson's:attonney-in-w-ashin&_-.. -
:_tonrSeyroour Glanzer; has re-
.. ? Peatedly told Federal prosecu-
tors that thewhole story of his _
client's involvement in. Libya.
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has notvbeen aired. Glanzer-, in!,
xtelepbone interview, refused ,
to comment. But -the prosecu-i
tors have inferred from con-i.
versations with. him that his:.
defense will be: Wilson is still :
at work for the.C.LA. There is
no known evidence that this is.,
the case, however: "
Mulcahy- immediately
sensed Wilson's. essential'.
toughness, but there was niath--:
ing unusual aboutsuch men in-
side the C.I.A- and it was a
characteristic- that. could be.:.
admired- MI&I.976':: was. al
period of travail for the C.I.A.;
which- wasunder attack in thei
press for its. illegat domestic'
spyingactivities and under in-
vestigadon. by the Senate, In-
telligence Committee: for its:
foreign asiaiiinatiorr efforts.
Mulcahylearned, ilioitliafter"
joining Wilson and Terpil, that
President Ford had _placed se... :
vere new* restrictions on clan-.
destine C.I.A. activities. Wil-
son and Terpil suddenly be-
came more legitimate in his
eyes: "I thought it was logical
that the agency.would set it up
this way and have their people;
on the street freelancing." .
During, that summer. Mul-
cahy edged closer to the lineof
illegality and, . in at least -one
case,, crossed it. He recalls
that Wilson and Terpil were
selling munitions. commtmi.:
cations equipment and highly
restricted night-vision devicei
without preliminary clearance
from the Office- of Munitiona
Control in- the State Depart-
ment and the export control.
division in the Commerce Des...
pertinent- In one case.. Wilsotit
and Terpil purchased a United
States Army vehicle equipped .
with night-surveillance equip-
ment for shipment to Libya, in
direct violation of all regula-
tions. To avoid- any possible
problem, the vehicle was first
sent to Canada and. trans- .
shipped from there to Tripoli.
The risks of such flagrant ac-
tivity were high, but so were
the rewards. The vehicle cost
about $60.000 to purchase in
the United States and was sold
to the Libyan Government by
Wilson and Terpil for $990.000,
Federal prosecutors ? later
learned. Similarly, Terpil and
Wilson provided Qaddafl with
hundredsof closely controlled'
and sophisticated infrared
night-vision devices for M-16 -
rifles,. which were primarily'
designed for use by snipers in..
warfare. Not all. such.- saleS.:
went to Libya...Mulcahy says'
.
he was directly involved in the
Illegal sale of 2;000 rounds of:
ammunition to-the South Afri-
can Government,. and he used.
falsified ...documents. to label.,
the ammunition' as "plumbing
fixtures.' " This and ' other
sales, he-sais,. were arranged::
through Sven K. H. Hoffelner,:;
an Austrian arms dealer who!:
. also: own.% a-'inccessful- group:!
of restaurants in London. Hof4
felner had established a close:
Iworkingrelationshipiwith Ter-4 .
pil by the tirneMulcahy joined
, theoperatioir, '
-.I.:In-July 1976; afterhis retunr
irons
learned that only six-of the 10
timing devices sent to Libya
had worked... The deinonstra.:.
tion of the devicei was made in.
Libya by-John Henry Harper,
? whograd-spent-.-more-than-20:-
years
as 'a bomb and ordnance
technician. for the-C.I.A. and
who had.. joined American
Electronic after' he- retired..,
Two of the timers had failed.i
Mulcahy.. was.- tokl; because.
Harper- had miswired them.i
Libya's reactions to the demon-.-
-
stration was. puzzling to Mug.
cahy: Although-nearly half th&.
devices bad failed to work, thet
'fair/anis -were Still. willing_tal
order 100,000 far immediate
delisreu....A_few_sveeics latere
?Terpil returned from a visit to
Libya with an increase irr the;
.;:ortier to 300;000. timers: .
didn't get suspicious." Mul-
cahy recalls. . "until -Frank
came' in with the order for
300,000. I knew damn good and
- well that there was no way-.
- there was a- need for... 300,000;
. timers ?there weren't 300,000-
mines- in the harbors and
deserts from the Six-Day War
as well as World War!)."
At this point, Mulcahy
de:stood that Wilson's story- -
about naine-clearing in Libya
was false, but he thought it .
was shielding a C.I.A. opera-
?
neie.si'serVing' as a
cover- for tesroristsupport
program_ Tbecover story was
beginning tOR erede....W12atever
conciiiied: Mulcahy.- was. qui,
!'etly?Suppressectover the-next
:few:weeks.: however:, "I- was
_inaptessed br the-money and
the-possibility--of ruakinga for-i
this:: thii..iC:waS: clear!!
that the' senior. ; officers : of'
:-American Electronic could not -
'be7. Persuaded to build 300,000;
tuners... without thei-
Onsieil,;;;;fittv-theLA.--There
-wasyet.. another scramble.
Thi-e tt*f i manufac-
turerwbo-cculd begm.dehver-
ing,the timesa.withm.45. days...
'AotherzFrmdazught:ineeting
? yiiiiila1**a**rr:4agecg
:-Y04,14*lici,FiTrsebta:
'Communications. of
. las:.Terpithildfound- the com-7.
vanywhos.e president. Joe I.
Halpairiilateragrieci.femanu.;
-,factist WO:prototype timers'
:,..:within--..3f!day-Si:,At the Friday-.
1-17 p ? tt Was: Williani?
,;,.N1f.eisetalasitgeF.Lthen_a- branch,
tOittliFirecalmicaF-
Ser? the-group
f*Preduchag the
' 'ativeanansandsa de-
vices,,llaalrave been: populart
ti.i.E...41iy,:thacJanies Bond mov.:i
ii*Thoinits q;;;; Clines: then a:.
!Seniaz.lafficiaLirr.the
pffice=of-Training, also was In!
.theben dietiigiit, sitting with::
EctiWg.soth: Mulcahy spent the"
night'- table-boppmg-as. the
-triantifiFturinig#? were
:Workeszr!atirzaClin."Vvis'Weli
known insidethe''igericy' foi
his. closeness
. had
played: a...;:srtile: in the"....1149 of
sElgs -After Shaildera retire.;
:mem:from: the.C.A.A in, 197'3'
he-and. Clines.:.viould set up. a
. the big_
nioneYz.that -night in,' the' bar..
Mulcahy later learned that the
"contract ? with Qaddaff
callectibr4,.t4tak payment. of
? $35 mi.11ion? foi.5e000 timers
whose cost to supply,he knew,-
would. be somewhere ' around,
$2.5 million. Even in the inter-,
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national-arms business, prof-
its like that are not. easy to
come by- - . ?
Wilson's major concern was
time; he had promised: theat
Libyans that he-would set up a.!
manufacturing, - laboratory *t
near Tripoli for the procluctioni
of assassination weapons.
August. ? Qaddaff, in-. turn, t
promised to pay him $1 =Ulla&
in cash immediately- upon ar.4
rival of the _firsn batat
timers, explbsiveS and otheri,
equipment that would be? need-4
ed. Manufa;n:urin& the weal
ors themselves in Libya would
be no problem;. inan as-
.Ioha Harper, who- was: paid::,
more than $2,000 a week by
Wilson and Tema, agreed. to
go to Libya and ben training!'
Libyans in the art of disguising ?
explcsives in ashtrays, flower..
pots; iseepe; and- ethee-beeee-:
bold goods that could he trig-
gered by delayed. timing de-
vices. Scientific.-__ComtnuniCa-.,:
tions came. through., as. its:.
promise to deliver the protorn
found. a California fi n,3S. Brc'
-
: and Associates ? of Poncawhich
? agreed:to- supply the chemicals;. alD
which were considered defense-articles
that could not be exportedwitheu:tzFedi
erallicensing. - ? ? ?
type timere within 3:9The:Texas
company had handled- legitimate-and
Sensitive contracts for the- C.I.A., but
this one-was different, and the firm's
president. JoeHa.lpaiti, knew it: He per-4 ?
zonally delivered the timers, hidden in
plastic-prescription bottles-for export
to Libya, to a motet near C.I.A.-head-I
th-ey?v7 -ere up byl
Wilson and Mulcahy; Far znoredifficult
were the issues of where to purchasel
thevolatile chemical explosives needed I
for the production of the a?kca-q-einAtion
weapons and. haw, to- slip them into:.:;
Libya. The necessary explosives' in-:
_eluded TNT mid a variety of lethal plas-
tiques ?among them- ItDX, formally
known as cyclotrimethylene trinitre::
mine?Which were designated. as Class:
' A explosives by the Department of
Transportation and. could not be
shipped on passenger and cargo air-.,
craft. Wilson and Terpii again reached
into the ranks of C.I.A. contractors and.
One? problem remainedi.; hmirta; get
the timers and explosives intaLiby Io
early August, 1976. Mulcahy attended a!
. meeting: at. the: offices- of!. lir-Tech'
nology. irc_Washington- With: eargsi
sales manager of -Lufthanse.:Germatt
Airlines,. which ha S passenger service
!rang. Germany' to Tripolis,: The. sales
manager; Walter DoerrcategoricalIY
refused to ship. the exPlosiveselegailyt
orotherwise, on:a passenger Craft An
he refused- to -c.harter-a.special Cargo
plane because. of the high risk?:?texplo...,
sion-Literthat day; Tema-arranged*
ineetingwithieromeSeprower,the61
year-old president of Brower anchAs4
sociates, who :was highlwrespecte$
figure irt hie industry- (and. lateewasi
asked- to _advise Congress*Office.
TechnologrAssessment cn:a3prciposeck
Method of -marking andtrieing.explo
styes used-in internationaEterrerisra).t.
Brower was shown-.a list or all::: the* -
Chemicals. that Inter-Technology.
wanted: to- puretraSe
operation:: .
Brower immediately exclainieiley.1
you don't need: all this stuft ft?*
clearance."...!
thii.:thpipany;
was setting up a Taboratiorile.Tripo14
anddoing some demonstrations.'wori<
::"He didn't say precisely-Yitiet*4PF4.
srdoing,"*. Mulcahy recalls;--?eliiiiii.7.-was1
obvious. Wilson went furthe_r;:thanYct.
ever hear& in explaining4e-:e9cipe7ot
the entire project- Thereal?'_4.2ncii.i.
:mous potential for follow-up-pestle* .
which removed any hahibi-itees.BrOvieri
had-ts:. Mulcahy roarvele42*Nitioi
to handle BrowerBreVier hadf
never done any businesSwitheida-er
these guys before and herh:-henieegree -
Ing to- sell and shirr, eXplosives7,-.to
Libya." Brower immediatelyraiied his
price and demanded partinipainient Ith
advance. Wilson and- Terpir-egreect tr:?;?
-pay nearly $38,000 on accotm4Muleshil
says, and the California Iiiisines-i-mani
"called his- plant, -talked td-hfi
Peggy, and his plant xnangerandtol
them how to pack the cheMiciliS-7,---4-
? ? RDX; the most lethal anti tnisiable-
material, was to be placed. inside
gallon drums in webbing and the drain*.
then were to be filled with a. get sub-;
stance. The explosives :Were to be
shipped. _ East, to Dulles .-_Airpose;
arked as "industrial solvent,"7cdtbe.
first available passenger flights,. Mut.;
z eahy recalls. Onceat Dulles, they craze
-rconsolidated.into one shipping contain-
er; along with the timers and the induse. .
trial tools and-workbenches needed- to
sel ....UP.: the-explosives laboratory in:
?::Libyte:...TheMthey were. forwardedl
sEurope. \ trans:shipment by Luft-
hansa passenger planes tonipolivrith-.
out. knowledge of the airline:. All. of the
ceiers involved in-the meeting in Wash.,.
!ingtore understood the implications of
!.-What theyrivere: doing, Mulcahy Says:.
?The; nitro- 'could have blown if the
1,Planehitartairpocliit."- ?? - .
? V:Browe:r_wai? indicted in Aprii
!along with for his..
!role in illegally conspiring to ship the
;explosives with knowledge that they
would-be used tor"Idll, Injure- an. in-..
*ttimidates individuals." After- pleading
guilty and agreeing to- cooperate with-
' Federak invesalgators, he- was, Aced
last. December and sentereced to *
. a. five-year prison term, with all h-at:
*- fixtiniontbs suspended. . ? .? . ?
The- meeting with Brower had,
- zolvekthe final.-stumbling block z.2-.4
.....-.;witson,fiew 0- Libya, where he was to -
e conclude the- arraiigements for- estab-
theweapons- laboratory and to
. be on handta insure, the careful
? ? dling-tatilieshipmentof seA-
frennthe United. States. Be also:
';,7vioulciterieiVethepromisedmilliore-dol;-?
. eperff,frenxt.Qaddarz_.
KeiiriMu1c:Filry;.. meanwhile,. flew' tir
Ehrope fora meeting in--London. with:
6Terpii and a-group of British arms deal...-.
......iceis:Ilitere.,was...the inevitable-party-
-early one balmy .- Sunday:. afternoon,
_ Sven: Hoffelner,.' the trade::
?Pink;tO,. South Africa. z Hoffeinee had:
iiteetett..-khirge. and as. it: Was- bef..ng-
mieled'alOng akcanal near Oxforti.;-: are.
beganri
f..Casuat-shapshrits of the revelrY_Teriili;
. ? esaWhiscamern; Mulcahy recalled; and.:
".beiserki.:He: got all red. in? the:
..1;ficee-hewasreally? really nervousend?
t'toldme-toput thecamera away before:
fy..?:!you end up dead.r."....... '
? Laterthat evening; Terpli explained*
.?;._that oneorthe guests on the barge was
'?!..;;Carlorr--; Ramirez,'- known.- . to police
tehrotightiut.theworld as "the Jackal"'
- the international . terrorise- believed,
be-re-ssponsibiefor /Aerating-the /97=
' t::0Iympics .....massacre in. ---.Munich.. a- ?
,deadly raid on the Fiumicino Airport in
and-mnnerous aircraft hijack-
. logs . There- was no photograph of
I Ramirez in existence, Terpil told Mul-
cahy; the "Wanted" posters on display
. .
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' at airports thrOughout the world con-
tained only a composite drawing. Ter-
pil also told Mulcahy that Ramirez was
living in barrack. No. 3 at the former
Wheelus United States Air Force base
in Libya. Terpil seemed awed by Rami-
rez, who was. accompanied at the party
by Sayad Qaddafi-,, chief of Libyan Intel-
identified by Terpil as Qadda-
ft.'s cousin and the second most power-
; ful than in Libya.
? ?? ?
Mulcahy was now in far too-deep anti
he knew it.. ?
It was late August and. -John Harper:
and other Wilson-Terpil- employees'
.we at work In .Tripoll setting up the
munitions. labeatory--. for terrorist
bombs and a training program, for their
effmtiveuse.. Wilson and Terpil made it
" clear to Mulcahy that they did not want,
hira to go to LibyawlefulcahAltept;hiei
now grave doubts to himself and comm.;
ued on-his business* trip, moving on to
Copenhagen and,: another - series. ot
_meetings. Terpil returned to Libya, and
he and Wilson suddenly dispatched an,
,urgent cable to Copenhagen: Mulcahy_
was to break. off his trip and return to.,
Washington to open negotiations there.
witthe(neJPiami..cpo? ra-
don for the purchase of one of its Red-
eye gramd-to-air missiles. General Dy-.
namics had advertised in trade jour-
nals that it had 13 Rediyes for sale to le-
gally acceptable buyers. The missile;
which could-not be. exported to Libya
under the law, is shoulder-launched and
las a heat-seeking component that en-
ables it to track and destroy aircraft in
flight. It had been used extensively and
successfully by the Israelis during the
1973 war. "My problem was not to.
worry about the paperwork," Mulcahy
says. "Terpil and. Wilson had a pilot in
Pennsylvania who would fly anywhere.
Once he got over the water" ? and:.
away from American legal jurisdiction
? "he would change the paper." If the
Redeye had been purchased, the pilot
would. simply cha. nge the intended re-
cipient Listed on- the export license,.
from an approved ally, such as those In
NATO, for example, to Libya. '
? Altering the State Department's ex-
port license, known officially as the
end-user certificate, was considered so .
much a normal part of the arms busi-
ness by Wilson and Terpil that Mulcahy
had been authorized to quote prices 8
percent to 12 percent higher if the sale
also required supply of the certificate.
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Mulcahy was utin-ieived by Ids SuddeM;
assignment and discussed it with an as-i
_Societe in Copenhagen? a foreign mil-la
tary attache stationed in Denmark whO,:
had a reputation for legitimate opera-
?bons. "My friend told me that theonlk
reason. Libya..would want one, Redeye.
was for use in a terrorist attack," MuI:.
; cahy says:: "We-speculated that- Qad;=
daft probably wanted to be thefirst to
-shoot down a 74?.. To hit a fully loaded
passenger plane in flight would be big4
get than-the destruction ot planes' at
L..when
terrorists in L97G blew up_ Om*
International airliners and held. scores
of pa.ssengershostage..
- Mulcahy had a-leisurely dinner and
beganwalking thestreets of Copenhag-
en. He couldn't sleep. Earecalfedatrip;
he andTerpil hadtaken.to a firm.called
Defense Apparel:: in- Hartford,: conn..;,,,
where ?Terpik discussed the possible-
purchase of Up to 100,00& suits- that
would protect humans exposed to-radio.-
activity. Could the Redeye carry a nu-.'
clear warhead? He knew- now he woulc
? never plaCe the Redeye order. - -
"T watched- the stmrise come; in C*4
penhagen,"..: Mulcahy recalls,,
knew whatL had tor d?--'g et back. to:
Washington tast-fhadtei niad.our what
'paperworkexisted"- in the Inter-Tech-J, .
nology- offices. he shared with Wilson.
!,r. felt. tha t Frank:and Eth,
were-:giving Qaddaft_ any--goddamiti
thing heasked 2
,
imessommenommemesii,,-
IIIXT
-;.Kevin Mulcahy goes. uixiergroUnd.,
to save his life. The: Government_
::drags its feet in the arms-export in- .
?,.:vestigation, while some._,fortner.,
L:American C.I.A. and militaryinetr,
continue exporting the hardware of;
terrorisnr ? timers. and: expki?
sives; far example and. train-
Libyans fcrr assassination. -
I
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'Li I:1 Tv - N./
? ?
? 'FBI:MAN THE CONTACT5'."..
Edwin P. Wilson is invariably de-. ? - prise.ixtasx juterview- upon- being told.
picted by former associates as: a of his official listing. "I never knew- t.
charming, charismatic, effective,. ? - was. on-- the board,"Gray. said; "I
rough-and-ready. 6-foot-4 swashbuck- never was. Invited to; a- board:: meet-
ler who excelled in his military and in- Ina' He-acknowledged that her has-
- telligence career. But thereal reasons
:for his success- as:. an. international
weapons dealer are the contacts be-
has built up during more than.2.13 years
.. of work with United States. Govern-
,. mentinteiligenceservices--
? _ .
TWilsOn went t? work for.the C.I.A_'s
- ? Office-of-Security in: 1951 and after
: ? serving in theMarinesi became a full-'
? .time C.I.A:.contract employee.43.1955:
L.: la the late 60'sf he helped organize a:
? Washington Consultants.
International .Inc..:for the- -
the Navy.. The-flint's ostensible:Pur-
"-; pose-was: to..'conduct export-import.
? operatiort, that- function.- was: a
cover fo clasSified... intelligence
?
?
- -Over thenextfew yearsAis
? gence- activitieS were combined and
mingled with; his private operations.
He hired a:- number of -associates,
? many of thernwith military-or intelli-
-gence backgrounds. and, according to-
... Federal officialsiLwas: routinely re;
ceiving huge kickbacks from- Ameri-
can_ manufacturers and foreign gov-
ernments ort. procurement con-
,- tracts.: ?
? The men ;working for him were con-
vinced .that he was still active in
_CLA-. intelligence operations.
thought he was reporting directly to
the President,!' one former associate
7: recalls- ?Ed still must be sanctioned.
? by the U.S. Government- The people I
- met were impressive- All of a suilden
- I'm on -a first-name basis with big
names in Congress and the Senate. It
was always like the Government was
? supporting us." Robert Keith Gray,
an influential public4-elations man
7 known for his close ties to the Eisen-
hower, Nixon and Reagan Adminis-
trations, was among those listed as a
member of the board of Consultants
International for five years, begin-
ning in 1970. However, Gray, who
served as co-chairman of Reaga.n'i
Inaugural Committee; expressed sur-
had a social and business relationship'
. with Wilstm;;;whorcr he described: as '
"charming ? ind yer.Y.
blooded AmeriCan,".......
1971; Wilson- dropped-his-C:1;A'.
.....connectiont.and.Was: part7 of Task.
F0rce157?e?sedet Navy, intelligenci-
-'? Unit that eniployed:541-ta 75 agents to
monitor and.---collect-;.informatiotr. on-
. Soviet shipping. it repo notonly..
on . itetris?::but. also.
.watched t for- the covert.. shipment of
military -koOdstind.nticlear weaPonif.
: 'The unit also waiChaiged,witir the re-4';
sponsibility Of picking up-intelligence-
operatives : from-Taiwan and secretly
ferryingthem.insida mainland Chins..., .
where.. they woulthimplant sensitive
seismic monito*-anti-?-radioi. equip-
-- ment:-ThOseoperationSqWere;toppect.
aften-President-Richard: M Nixon's
? visit to Peking 41972; and C.-LA. aft-.
cials were:iastonished to learn. later
--that boale-..Of the;sersiiiye. uipunit.
? designed: solely foi..ose_inside China,
was appearing for sale in the intenia-
tionalarms
- .Wilson's first-CS:Al: assignment; 1n .
the.50's;: Was:to:infiltrate the Seafar-
,: ers Internationa-Union;,..hrwhicir he
was eventually?EippOinted to:a 'number-.
of official pOsition.* He; alin-Vias.,.in;".
volved in Congressional lobbying on-.
behalf- of;the .Union, and apparently.
began theaforming his.closes relation;
with ft twroher.:of-...influentiak
members of Congress.. Wilson became
a C.I.A..: specialist Mr niaritime-issuet-:
andwas- involved' imthe-procurement
-
of equipment far:-Clandestine Navy
operations. During;the Bay of Pigs, he
was assigned-as a paymaster and han-
dled procurement-as-'well. He-later
served in- Southeast: Asia- and-,Latin-
A-Merit:a:
? -.A full accounting of Wilson's con-
nections and busineds activities may
never. be know. 'He has boasted of
having a controlling interest in more
than 100 corporations in- the United
States and Europe. ?S.M.H.
? I
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