REMARKS OF WILLIAM J. CASEY DIRECTOR OF CENTRAL INTELLIGENCE BEFORE THE UNION LEAGUE CLUB

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP87M00539R002904800038-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 88
• Document Creation Date: December 22, 2016
• Document Release Date: December 28, 2009
• Sequence Number: 38
• Publication Date: January 9, 1985
• Content Type: REPORT

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REMARKS OF WILLIAM J. CASEY
DIRECTOR OF CENTRAL INTELLIGENCE
before
THE UNION LEAGUE CLUB
The Union League Club
New York City
Wednesday, 9 January 1985
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It is a special pleasure for me to speak at this important forum covering
public policy for almost,a century and a quarter and I'm here as a member of
this club. I hope my dues are up to date. The club seem to be doing alright
with or without my dues. I see Abraham Lincoln looking down on me and I
think he'll understand if I speak about human rights. We are challenged
today by flagrant abuses of human rights in Africa, Asia and Latin America
which are massive and laden with a horro- unequaled since the Nazi holocaust
of forty years ago. The horror of the wars and brutal repression inflicted
by Marxist-Leninist regimes is compounded by the failure and devastation
wrought by the bankruptcy of Marxist-Leninist economic and political policies
wherever they prevail. All this, with its enormous implications for our
national security, and in the challenge and opportunity it presents to the
free world is widely ignored--to a degree which we can only find appalling
if we appreciate the true nature and dimension of what is happening from
Ethiopia to Afghanistan to Cambodia and to our own hemisphere. That's
what I want to lay out for you today.
Where should one start on so sweeping a phenomenon? In the aftermath of
the Geneva talks and the hope that they have laid the groundwork for a gradual
scaling.down.of the nuclear monster, I would go back 20 years to a warning
Nikita Khrushchev gave the world. He proclaimed that Communism would win
not by nuclear war which might destroy the world, nor by conventional war
which might lead to nuclear war, but by national wars of liberation. In
those 20 years, the Soviet Union was transformed from a continental power to
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a global power, acquiring bases and surrogates in Cuba, Vietnam, Ethiopia,
Angola, South Yemen, Mozambique, Nicaragua and Afghanistan. Their navy has
secured the use of harbors, airports, communications stations, or port of
call rights in some 14 nations. In a mere ten years, the number of Warsaw
Pact and Cuban troops, military advisors and technicians stationed in Third
World countries increased an incredible 500 percent. They have expanded
their reach to a number of countries near the strategic choke points of the
West--the Panama Canal, the Straits of Gibraltar, the Suez Canal, the
Strait of Hormuz, the entrance to the Red Sea, and from Can Rahn Bay in
Vietnam to the sea lanes of East Asia.
Elsewhere, Marxist-Leninist policies and tactics have unleashed the'four
horseem e-.n
f the apocalypse--famine, pestilence, war and death. Throughout
the Third World we see famine in Africa, pestilence through chemical and
'biological agents in Afghanistan and Indo-China, war on three continents,
.and death everywhere.
The horror of what has been happening calls for a closer look. Apart
from a few islands of vitality, mostly in East Asia, less impressive in
Latin America and Africa, we see countries like Afghanistan, Angola, and
Cambodia kept under control by more than 300,000 Soviet, Cuban and Vietnamese
troops. We will see half a dozen other countries--Ethiopia, Nicaragua,
South Yemen, Cuba'and Vietnam--controlled by committed Marxist-Leninist.
governments with military and population control assistance from the East
bloc. Most of the other countries in the Third World are suffering some
degree of stagnation, impoverishment or famine.-
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What do we see in the occupied countries--Afghanistan, Cambodia, Ethiopia,
Angola, Nicaragua--in which Marxist regimes have been either imposed or
maintained by external forces? In the aggregate there has occurred a holocaust
comparable to that which Nazi Germany inflicted in Europe some 40 yee-s ago.
Over four million Afghans, more than one-quarter of the population, have had
to flee their country into Pakistan and Iran. The Helsinki Watch tells us
that they have fled because "the crimes of indiscriminate warfare are combined
with the worst excesses of unbridled state-sanctioned violence against civilians."
It cites evidence of "civilians burned alive, dynamited, beheaded; crushed
by Soviet tanks; grenades thrown into rooms where women and children have
been told to wait.. .From throughout the country come tales of death on every
scale of horror, from thousands of civilians buried in the rubble left
by fleets of bombers to a young boy's throat being dispassionately slit by
occupying soldiers." Tens of thousands of children have been taken from
their parents and sent outside of the country for reeducation.
In Cambodia, 2-3 million people, something like one-quarter of the
pre-war population, have been killed in the most violent and brutal manner
by both internal and external Marxist forces. The invasion of the country
by the Vietnamese army in 1978 and the scorched earth policy adopted then
created a famine. When international relief agencies, including the Red
Cross and the International Rescue Committee, tried to feed the starving
population by a "land bridge" of trucks coming in from Thailand, the Vietnamese
government blocked them. We estimate that some 350,000 civilians died in
that year.
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In Nicaragua, our Department of State has reported--and intelligence
sources confirm--widespread violations of basic human rights. The International
League for Human Rights has stated that the Sandinistas have forcibly relocated
up to 14,500 Indians and completely destroyed entire villages. In late 1983,
some 200 members of one of the largest non-Marxist political parties, the
Democratic Conservative Party, were in jail for political activities. Censorship
is extensive, opposition leaders have been prevented from traveling abroad,
people in the cities are organized block-by-block and kept under the scrutiny
and control of a system of neighbor informers based on the Cuban system.
Angola is an economic basket case as a Marxist government is kept in
power by the presence of 30,000 Cuban troops. In all these countries the
indigenous army formed by the Marxist government suffers large and continuing
desertions to the resistance and is almost entirely ineffective.
In Ethiopia, a Marxist military government is supported with extensive
military support from Moscow and thousands of Cuban troops as it spends
itself into bankruptcy trying unsuccessfully to extinguish opposition in its
northern provinces. By collectivizing agriculture, creating state farms and
collectives, and keeping food prices low in order to maintain urban support,
it has exacerbated a famine which threatens the lives of millions of its
.citizens. It has blocked emergency food deliveries to the hungry remote
areas, particularly those in provinces where insurgencies are active. It
has exploited the famine by using food as a weapon. In urban areas, for
example, food rations are distributed through party cells. In government-
controlled emergency feeding stations, incoming victims must be registered
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and certified by party authorities. The government is using the drought and
famine as an excuse to forceably relocate tens of thousands of victims from
northern provinces hundreds of miles to the south, without any evident efforts
to receive them in the new camps.
Cuba, Vietnam, Ethiopia, Angola, and Nicaragua, all economic basket
,cases, receive in the aggregate five to six billion dollars in military and
economic aid from the Soviet Union. This enables Vietnam to maintain the
fourth largest army in the world, Ethiopia the largest army in Africa, Cuba
the second most powerful military apparatus in the Western Hemisphere, Nicaragua
a military force larger than all its Central American neighbors put together.
There are over 100,000 Soviet troops in Afghanistan, 170,000 Vietnamese
troops in Cambodia, 40,000 Cuban troops in Africa. This is worldwide
military aggression directly and by proxy. That and the horror of it is the
bad news.
The good news is that the tide has changed. Today in Afghanistan,'
Angola, Cambodia, Ethiopia, and Nicaragua, to mention only the most prominent
arenas, hundreds of thousands of ordinary people are volunteers in irregular
wars against the Soviet Army or Soviet-supported regimes. Whereas in the
1960s and 1970s anti-Western causes attracted recruits throughout the Third
World, the 1980s have emerged as the decade of freedom fighters resisting
Communist regimes. In many places, freedom has become as exciting and.
revolutionary as it was here in America over 200 years ago-.
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Despite this reversal of momentum, the Communists continue to come on
strong to consolidate the positions they have established. They are spending
close to $8 billion a year to snuff out freedom in these countries.
At is not necessary to match'this in money, manpower or military weapons.
Oppressed people want freedom and are fighting for it. They need only modest
support and strength of purpose from nations which want to see freedom prevail
and which will find their own security impaired if it doesn't.
The Communists have this strength of purpose but not the means to
consolidate the far off positions they have established if the local resistance
can count on durable support. In Afghanistan, Communist strategy is to keep
at bay and grind down the resistance, to isolate it from the mass of the
population or drive larger numbers out of the country, and to slowly build
up a Communist civil-military infrastructure through training, indoctrination,
and cooption--counting on a perception there and abroad of inevitable victory.
In Nicaragua, they are piling in weapons to extinguish the armed resistance,
cracking down on the political opposition and pushing negotiations to cut
off outside support and influence in order to buy time to consolidate their
first base on the American mainland.
Now let me turn to what's happening in the unoccupied Third World
countries. There, too, the Marxist economic model has failed. Third World,
leaders have become disillusioned with Marxist-style economics. They have
discovered that Communist countries supply only meager amounts of economic
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aid and are unable to offer significant markets for Third World goods.
Last year, Moscow's commercial trade with the Third World was less than, that
of South Korea!
The Communist model of tight, centralized control is the major cause of
the economic stagnation in many countries. The state-owned industries became
highly inefficient, while collectivization of agriculture lowered the incentive
to produce food and increased migration to already over-burdened cities.
Many Third World countries have found themselves increasingly dependent on
imported grain. In fact, like Russia itself, some Third World countries
that once were grain exporters now find themselves buying grain abroad.
The contrast between North and South Korea as well as the experience of
newly industrialized economies such as Singapore, Hong Kong, Taiwan, and
Brazil have not been lost on Third World leaders. Both North and South
Korea share a common cultural heritage, indeed both share a small peninsula.
Yet from 1976 to 1983, South Korea's GDP grew some 7 percent a year while
North Korea's growth was a paltry 1.7 percent. Export-led growth in the
newly industrialized countries have raised their per capita Gross National
Product to $2,400, more than three times the average of the rest of the
Third World.
The experience of the Third World in the last 30 years indicates that
while elements of economic progress cannot be easily pinpointed,. the private
sector is the crucial link. Only private initiative can marshal the
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entrepreneurial resources necessary for sustained growth. Third World
countries need an economic environment that rewards individuals for their
hard work and their creativity.
They need to give the same fair treatment to foreign and domestic
investment. Foreign investment brings more to a developing nation than just
money. It brings technology, training, management, skills, and marketing
links. Foreign assistance should be used to supplement domestic savings.
We have seen that too much reliance on foreign assistance breeds dependency.
Trade must also be developed. Third World countries need exchange rates
that favor exporters rather than importers.
There are signs that many Third World countries are beginning to reassess
their economic policies. Investment barriers in some places are beginning
to be eased. A growing number of countries are making innovative use of
export processing zones and joint ventures.
Public perceptions toward government regulatory practices and public
employment are also changing. State-owned enterprises have been turned over
to private firms in: Pakistan, Somalia, Sudan, Zaire, The Philippines,
Jamaica, and Chile. Free markets have sprung up in Chi-na and Algeria.
Farmers.in China now sign contracts with the state on what they will produce
and market their surplus freely. This has been a economic boon to the countryside
where for the past three years production has jumped over 30 percent and
rural income has climbed rapidly. State farms have been dismantled in
Mozambique, Mali, and Zambia. Bangladesh is turning from government to
private channels to distribute,fertilizer.
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"Second economies" are springing up and beginning to be recognized as
helpful to economic development and also as a cushion during hard times. In
Peru, where it takes scores of permits to do business, a second "freer"
economy has grown to the point that it is nearly 50 percent larger than the
legal economy.
This changing climate presents significant economic opportunities for
the United States. We can help by promoting small-scale enterprises within
the Third World. Third World countries have often ignored the beneficial
impact of small businesses and even cottage industries. Yet these businesses
help achieve government goals through industrial decentralization, employment
generation, and income redistribution in rural areas. Small-scale,
domestically-oriented entrepreneurs help create a critical mass in terms of
economic progress. Entrepreneurs flourished in many West African countries
until government policies dampened their efforts. Likewise, Central America,
especially El Salvador, was fertile ground for beginning entrepreneurs until
their gains were set back by political turmoil.
In order to make the most of this increasingly important evolutionary
and grass roots development process, we need to reorder economic aid programs
so that more assistance reaches the small-scale entrepreneur and the.flow of
private capital, technology and skill to less developed countries is stimulated.
We can also use foreign capital to help state enterprises become more
efficient and find ways to relinquish some functions to the private sector;
we can strengthen our trade, finance and investment links to less developed
countries based upon a growing mutuality of economic interest.
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The forces at play here have security implications as well. They can
strengthen the West's position relative to that of the Communist Bloc in the
Third World. Soviet domestic economic and foreign financial constraints
over the next ten years will make Moscow even less able to compete in
nonmilitary sectors. At the same time, Western security interests will
often coincide with opportunities for economic support, and security assistance
can reinforce the willingness and ability of lesser developed countries to
bring in and develop capital, technology and needed skills.
I don't want to leave you with the impression that all the problems and
threats we find around the world stem from Moscow or even from Marxist-Leninist
doctrines. In Africa, not only Marxist Ethiopia but all across Sub-Saharan
Africa, at least 14 million people, possibly more, face permanent disability
and even death from famine during this year. The whole civilized world
faces a scourge of international terrorism. These perils are so imminent
and severe that they cry out for coherent international action.
We have launched the "African Hunger Relief Initiative" to relieve
famine in several African countries. Our country does not have the food
resources to meet African aid requirements fully but with other Western
countries enough food can be pulled together. However, African ports and
poor ground transportation can't distribute all the food that is required.
It will take Western equipment, technical assistance and air transport to
meet the needs of millions of people living in rural and remote locations.
It can be done but it will take leadership and a degree of cohesion and.
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cooperation which"Western nations with their legislative and budget limitations
find it difficult to achieve. But the need cries for all-out action to work
through the necessary procedural steps as early this year as possible.
The continent-wide African food crisis will continue into 1986 and
beyond. Large populations will continue at risk because of declining
agricultural production,"continuing civil wars and continuing failure to
achieve agricultural reform and development. We have the knowledge and
technical ability to restore African food productivity. Western nations
generally agree on the urgency of improvements in agricultural pricing,
elimination of state controlled marketing boards and collectivized agriculture,
as well as restructuring economic priorities in favor of food producers
instead of urban populations.
The several threads of our current policy such as pressing for meaningful
reforms from recipient governments, offering new forms and amounts of assistance,
and moving quickly could all be brought together in a major, coordinated
rescue effort. We have here an opportunity not only to save many lives but
to generate a new wave of progress which would demonstrate for all peoples
the fundamental superiority of free market policies and practices over statist
models." A dramatic and effective response to the food crisis could serve
to galvanize our efforts to generally reorient Western foreign assistance
programs toward the free enterprise development approaches President Reagan
outlined at Cancun in 1982.
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Similarly, international terrorism calls for concerted action. We face
here a new weapons system which is dissolving the boundary between war and
peace. We've seen it move from plastic charges to assassinations, to highjacking,
to car bombs, and we worry about nuclear and biological terrorism. This
terrorism has a home in North Korea, Iran, Libya, Bulgaria. It is increasingly
used as a foreign policy instrument of sovereign states. This weapons system,
this foreign policy instrument must not be allowed to work. The implications
are too ominous.
American citizens and installations abroad are the primary targets.
Qadhafi recently assigned his most radical advisors to increase Libya's
capabilities for terrorist operations in Latin America, to strengthen leftist
militants and to promote anti-US actions there. He clearly intends to launch
a more aggressive effort to undermine US interests in this hemisphere.
Today there is no more urgent task for statesmanship than to develop an
effective way to check rampant terrorism through improved security, intelligence
gathering, retaliation and preemption against specific targets, and by imposing
political isolation and economic squeeze on states sponsoring terrorism. To
be effective the response to terrorism must be a concerted one on the part
of all civilized and peace-loving states. We got together to develop defenses
against airplane highjacking in the seventies. We are already late in
achieving international cooperation against today's more widespread and
virulent international terrorism.
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There's no time left to deal with the enormous burden of debt, or rapidly
growing population straining resources. But I would conclude by re-emphasizing
that none of these problems can be handled unless more advanced countries
step up to counter politically motivated violence and to re-energize
constructive economic forces in what promises in the years ahead to be the
major battleground between those who want to see freedom prevail and those
who want to extinguish it.
Thank you.
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1 March 1984
STATEMENT ON MKULTRA
Because of events in the 1940's and early 1950's, including operational
reports and Soviet show trials involving Cardinal Mindzenty and others, the
Soviet Union was believed to have developed the capability to affect human
behavior through the use of drugs. To obtain information on the use of
chemical and biological substances and methods to counter the use of behavior
influencing drugs, the Agency conducted an "umbrella project" under which
various subprojects were funded. This umbrella project, which was called
MKULTRA, continued from 1953 through 1964. Much of the research, only a
portion of which involved LSD, was conducted at well-known institutions under
the control and direction of researchers at, and in conformance to the
standards of, those institutions. The research and its results were generally
unclassified and published in the normal manner by those researchers.
In only three instances was research performed in a manner which would
raise questions regarding its ethical/moral propriety. The questionable
subprojects involved the use of individuals who were not aware that they were
the subjects of a research program or that they were being given a drug. This
unwitting testing is believed to have taken place in social situations among
friends and acquaintances of the researcher. In 1963, after questions were
raised within the Agency by the Inspector General about the propriety of these
subprojects, they were discontinued.
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Between 1963 and 1967 some testing of drugs continued, but only on
voluntary subjects. In 1967 all projects involving behavior influencing drugs
were terminated. Safeguards were subsequently promulgated through
Presidential Executive Orders which have been strictly followed. The current
Presidential Executive Order, E.O. 12333, provides guidelines for the
effective conduct of U.S. intelligence activities and the protection of
constitutional rights. It requires that research which might be conducted
involving humans be subject to Health, Education and Welfare promulgated
guidelines, and that the subjects' informed consent be documented in
accordance with those guidelines.
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BUSINESS COUNCIL ON NATIONAL ISSUES
1984/1985
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 ORIGINS
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I he Business Council on National Issues is the senior voice of business in Canada, and
is composed of the chief executive officers of 150 leading Canadian corporations.
Formed in 1976, the Business Council is the means by which business leaders have
chosen to contribute personally to the development of public policy and to the shaping
of national priorities.
The corporations which make up the Business Council administer in excess of $590
billion in assets which produce annually more than $190 billion in revenues. The
member companies employ more than 1.5 million Canadians.
OBJECTIVES
Hie Business Council is not a lobby group seeking to represent narrow interests that
hale been traditionally associated with business. Rather the Council is dedicated to the
fostering of public policies that will lead to a stronger economic and social fabric within
a health\ democratic society. The Business Council believes that the interests of
business and the interests of all Canadians are frequently parallel, and that a sound
appreciation by the public and private sectors of one another's perspectives will benefit
the country.
ROLE
The Business Council has three distinctive features: it comprises solely chief executive
officers of member corporations; it draws its membership from the full range of
industry, trade, commerce and finance; and it devotes itself to developing positions on a
limited number of public policy issues of national significance. These have included
major initiati\es in numerous areas of economic concern such as macro-economic
police, energy. industrial policy, international trade, labour relations, and competition.
Commitment to social concerns has resulted in a protracted study of Canada's pension
system. Interest in the political process has led to major studies on parliamentary reform
and the reform of political institutions. And concern about Canada's external and
defence policies has resulted in significant work in these areas.
OPERATIONS
The leadership of the Business Council is provided by the Executive Committee. Overall
authority is rested in the Policy Committee elected by the membership. A major part of
the \sork of the Business Council is carried out under the direction of task forces
established to deal with particular issues. Composed of Council members, these task
forces are usually chaired by members of the Policy Committee. They are formed,
reshaped and dissolved as circumstances dictate or when their work is completed.
The President is the Chief Executive Officer of the Council and a member of the
Executive Committee. He also heads the Secretariat. Based in Ottawa, the Secretariat
provides to the Policy Committee, the task forces and membership a wide variety of
support services. These are supplemented by members' corporate staff resources and the
work of independent consultants.
The Business Council works closely with decision-makers in government, in organized
labour and among a wide variety of interest groups in Canada. The Council also
maintains working relationships with a number of private sector organizations abroad.
utmun, tc.t_ ttcooert/
Abitibi-Price Inc.
Culver, D.M. (David)
Alcan Aluminium Limited
Macnamara, J. (John)
The Algoma Steel Corporation, Limited
Ripley, M.J. (Jack)
Allied Canada inc.
Cooperman, E. (Edwin)
American Express Canada Inc.
Pilley, T.W. (Trevor)
Bank of British Columbia
Mulholland, W.D. (William)
Bank of Montreal
Ritchie, C.E. (Cedric)
The Bank of Nova Scotia
Bawden, P.C. (Peter)
Peter Bawden Drilling Ltd.
Paul, R.H. (Robert)
Bechtel Canada Limited
de Grandpre, A.J. (Jean)
Bell Canada Enterprises Inc.
Maier, G.J. (Gerald)
Bow Valley Industries Ltd.
Kirkby, M.A. (Anthony)
BP Canada Inc.
Eyton, J.T. (Trevor)
Brascan Limited
Barclay, I.A. (Ian)
British Columbia Forest Products Limited
Child, A.J.E. (Arthur)
Burns Foods Limited
Lawrence, R.J. (Jack)
Burns Fry Limited
Reekie, C.D. (Douglas)
CA E Industries Ltd.
Crawford, E.H. (Edward)
The Canada Life Assurance Company
Stock, V.N. (Val)
Canada Packers Inc.
Stevens, J.H. (Hugh)
Canada Wire and Cable Limited
Melloy, S.F. (Stanley)
Canadian Chamber of Commerce
Cameron, P.A.G. (Peter)
Canadian Corporate Management Co. Ltd.
Bentley, P.J.G. (Peter)
Canadian Forest Products Ltd.
Cartwright, AS. (Alton)
Canadian General Electric Company Limited
Harrison, R.E. (Russell)
Canadian Imperial Bank of Commerce
McGill, J.W. (John)
Canadian Liquid Air Ltd.
Black, J.T. (James)
Canadian Manufacturers' Association
Burbidge, F.S. (Frederick)
Canadian Pacific Limited
Nielsen, A.R. (Arne)
Canadian Superior Oil Ltd.
Muncaster, J.D. (Dean)
Canadian Tire Cor
oration
Limited
p
,
To ensure maximum co-ordination of planning and effort in matters of overall concern Cullens, W.S. (William)
to the business community in Canada, senior officers of the Canadian Chamber of Canron Inc.
Commerce, the Canadian Manufacturers' Association, and the Conseil du Patronat du Barron, J.C. (Christopher)
Quebec participate in the affairs of the Business Council as associate members and as Cassels Blaikie & Co. Limited
r?tic io members of the Policy Co Sanitized Copy Approved for Release 2009/12/29: CIA-RDP87M00539R002904800038-5
Hantho, C.H. (Charles)
C-/-L Inc.
Flenniken, C.S. (Cecil)
C/P inc.
Anderson, M.N. (Norman)
Cominco Ltd.
Read, F.W. (Fred)
Commonwealth Construction Company Ltd.
Rhind, J.A. (John)
Confederation Life Insurance Company
Allard, S. (Sebastien)
Conseil du Patronat du Quebec
Wilder, W.P. (Bill)
The Consumer's Gas Company Ltd.
Melloy, S.F. (Stanley)
Continental Bank of Canada
Morrison, J.A. (John)
Continental Can Canada Inc.
Allan, T.S. (Dudley)
Control Data Canada Ltd.
Cooper, J. (Jack)
Cooper Canada Limited
Chippindale, W. (Warren)
Coopers & Lybrand
Heffernan, G.R. (Gerald)
Co-Steel International Limited
Bandeen, R.A. (Robert)
Crown Life Insurance Company
Martin, P.E. (Paul)
The CSL Group Inc.
Meikle, G.R. (Giles)
Deloitte, Haskins & Sells
Sherman, F.H. (Frank)
Dofasco Inc.
Fell, AS. (Anthony)
Dominion Securities Pitfield Ltd.
Smith, J.H. (James)
Domtar Inc.
Newall, J.E. (Edward)
Du Pont Canada Inc.
Hollands, H.C. (Claude)
Erco Industries Limited
Freberg, K.A. (Kenneth)
Ethyl Canada Inc.
Fraser, J.F. (John)
Federal Industries Ltd.
Fleck, J.D. (James)
Fleck Manufacturing Inc.
Harrigan, K.W. (Kenneth)
Ford Motor Company of Canada, Limited
Hurlbut, R.S. (Robert)
General Foods Inc.
Herrick, J.D. (John)
General Mills Canada, Inc.
MacNaughton, A.A. (Angus)
Genstar Corporation
Stoik, J.L. (John)
Gulf Canada Limited
Convery, F.W. (Frank)
Hedw.yn Communications Incorporated
Bilodeau, R.J. (Rodrigue)
Honeywell Limited
Taylor, C.K. (Keith)
Hudson Bay Mining and Smelting Co., Limite
_odge, L.K. (Lorne)
I R 44 t r.t
 Pare. P. (Paul)
Imasco Limited
Mclvor, D.K. (Donald)
Imperial Oil Limited
Baird, C.P. (Charles)
'nco Limited
Graham, R.G. (Robert)
Inter-City Gas Corporation
Heule. R.K. (Robert)
Interprovincial Pipe Line Limited
Jones. R.H. (Robert)
The Investors Group
Phillips. R. (Roger)
IPSCO Inc.
Sasage, T.H. (Thomas)
ITT Canada Limited
Morrison. R. (Ronald)
1..,.fak Canada Inc.
\\iddrington. P.N.T. (Peter)
John Lahait Limited
Lamarre. B. (Bernard)
Lavalin Inc.
Goldstein, R.A. (Richard)
Lever Brothers Limited
Moser, J.T. (John)
331 Canada Inc.
Smith. R.V. (Raymond)
tfactiillan Bloedel Ltd
\tannix, R.N. (Ronald)
tfanalta Coal Ltd.
Jackson, E.S. (Sydney)
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The Manufacturers Life Insurance Company
O'Donoghue, P.H. (Paul)
Marsh & McLennan Limited
Kierans, T.E. (Thomas)
McLeod Young Weir Limited
Da,idson, R.L. (Robert)
The tlerca file Bank of Canada
Brochu, R.A. (Robert)
William M. Mercer Limited
Armstrong. C.N. (Charles)
Metropoliran Insurance Companies
Black. J.T. (James)
The Molson Companies Limited
Garneau, R. (Raymond)
Frazee, R.C. (Rowland)
The Royal Bank of Canada
Robitaille, J. (Jean)
Reynolds Aluminum Company of Canada Ltd.
Lang, E.J. (Edward)
RJR-Macdonald Inc.
Hawkes, R.H. (Robert)
Rothmans of Pall Mall Canada Limited
Hollander, L. (Louis)
Reichhold Limited
Curry, Steele
Revelstoke Companies Limited
Korcz, J.W. (John)
Wilson, L.R. (Lynton)
Redpath Industries Limited
Wilson, W.M. (William)
Reed Sienhouse Companies Limited
Royal Insurance Company of Canada
Cornelissen, M.A. (Michael)
Royal Trusteo Limited
Jellinek, G. (Gabor)
Joseph E. Seagram & Sons, Limited
Sharpe, C.R. (Richard)
Sears Canada Inc.
Daniel, C.W. (William)
Shell Canada Limited
Thomas, D.D. (David)
Sherritt Gordon Mines Limited
Fisher, G.N. (Gordon) f
Southam Inc.
Fernie, A.S. (Alastair)
The Standard Life Assurance Company
Gordon, J.P. (Peter)
Stelco Inc.
Loar, W.R. (William)
Suncor Inc.
Galt, T.M. (Thomas)
Sun Life Assurance Company of Canada
Keevil, Jr., N.B. (Norman)
Teck Corp.
The .tlontreal City and District Savings Bank Dunlap, J.L. (James)
Panabaker, J.H. (John) Texaco Canada Inc.
The Mutual Life Assurance Compam' of Canada Thomson, R.M. (Richard)
MacDonald, J.R. (John)
Nabisco Brands Ltd.
Belanger, M.F. (Michel)
\ational Bank of Canada
Pouis, A. (Alfred)
oratda Inc.
Battle, E.G. (Eddie)
Norc en Energy Resources Limited
Light, W.F. (Walter)
\'orthern Telecom Limited
Schmon, R.M. (Robert)
The Ontario Paper Company Limited
Wolfe, R.D. (Ray)
The Oshawa Group Limited
Born. C.A (Allen)
Placer Development Limited
Dudley. R.S. (Robert)
Polysar Limited
Desmarais, P.G. (Paul)
Power Corporation nf Canada
The Toronto-Dominion Bank
Marchment, A.R. (Alan)
Traders Group Limited
Williams, M.M. (Marshall)
TransAlta Utilities Corporation
Latimer, R.R. (Radcliffe)
TransCanada Pipe Lines Limited
Damov, D. (Daniel)
Travelers Canada
Milavsky, H.P. (Harold)
Trizec Corporation Ltd.
Kissick, N.W. (Norman)
Union Carbide Canada Limited
McKeough, W.D. (Darcy)
Union Gas Limited
Chorlton, R.W. (Ronald)
Wa%ar Limited
Serenbetz, R. (Robert)
Warner-Lambert Canada Inc.
air, l.D. (Ian) Medland, C.E. (Edward)
MI
Prudential Assurance Company Limited Wood Gundt' Limited
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Chairman
Michel F. Belanger Steele Curry Gordon N. Fisher J. Peter Gordon
1 i, e-Cinairman 1'ice-Chairnman Vice-Chairman Vice-Chairman
Thomas P. d'Aquino
President & Chief Executive Officer
POLICY COMMITTEE
CIA-RDP87M00539R002904800038-5. l (Tom) ? R.F. Bennett (Roy)
P.G. Desmarais (Paul) ? R.S. Hurlbut (Robert) ? P.H. Leman (Paul)
F.S. McCarthy (Frank) ? W.E. McLaughlin (Earle)
W.F. McLean (William) ? J.D. Muncaster (Dean)
R.C. Scrivener (Robert) ? I.D. Sinclair (Ian)
A.A. Thornbrough (Albert) ? W.O. Twaits (William)
W.G. Ward (Walter)
Anderson. \I.N. (Norman)
Frazee, R.C. (Rowland)
TASK FORCES
C"n:in, o Ltd.
The Royal Bank of Canada
National Finance
Baird. C.F. (Charles)
Garneau, R. (Raymond) /',, . _i , _
_~
International Trade and Investment
In, a Limited
(Michel)
Belanger
M
F
The Montreal City and District
Savings Bank
Energy Policy and Natural Resources
Federal-Provincial Relations
.
.
.
National Bank of Canada
Gordon, J.P. (Peter)
Stelco Inc.
Social Policy and Retirement Income
Employment and Labour Relations
Bilodeau. R.J. (Rodrigue)
Harrigan
K.W. (Kenneth)
Government Organization
Honevi%ell Limited
,
Ford Motor Company of Canada,
Foreign Policy and Defence
Black. J.T. (James)
Limited
Taxation
The .1folson Companies Limited
Carturight..A.S. (Alton)
Canadian General Electric
Heffernan, G.R. (Gerald)
Co-Steel International Limited
Jackson, E.S. (Sydney)
SECRETARIAT
Conapanr Limited
Clark. G.D. (Denton)
The Manufacturers Life
Insurance Company
President & Chief Executive Officer
Thomas P. d'Aquino
RCA Inc.
Curer, D.%I. (David)
Mclvor, D.K. (Donald)
Imperial Oil Limited
Senior Associate Senior Associate
Peter E. Vivian Dwayne D. Wright
.-t lean Ahnniniunn Limited
Curry, Steele
Rei el-stoke Companies Limited
d'Aquino. T.P. (Thomas)
Business Council on National Issues
McKeough, W.D. (Darcy)
Union Gas Limited
Medland, C.E. (Edward)
Wood Gundv Limited
Newali, J.E. (Edward)
Du Pont Canada Inc.
Director
Policy Analysis and Research
Jock A. Finlayson
Research Associate
Todd Rutley
de G randprz.A.J. (Jean)
Bcll Canada Enterprises Inc.
Powis, A. (Alfred)
Noranda Inc.
Assistant to the President
Patricia A. Longino
Staff Assistants
Fisher. G.N. (Gordon)
Ritchie
C.E. (Cedric)
Southann Inc.
,
The Bank of Nova Scotia
Janet Boden
Mary Hogan
Fraser. J.F. (John)
Sharpe
C.A. (Richard)
Federal Industries Ltd.
,
Sears Canada Inc.
Kathy Humphreys
Catherine Spencer
Allard, S. (Sebastien)
Conseil du Patronat du Quebec
Black, J.T. (James)
Canadian Manufacturers' Association
EXECUTIVE OFFICE
Royal Bank Centre, Suite 806
90 Sparks Street
Melloy, S.F. (Stanley) Ottawa KIP 5B4
Canadian Chamber of Commerce [phone]
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ARTICLES ON INTELLIGENCE BY ROSS MUNRO
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 ARTICLE APPEARED
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10 September 1984 y v.
Nation
Fallout from Flight 007
Conspiracy theories persist about the downed Korean airliner
I t has been exactly a year since a Soviet
Su-15 jet fighter blasted Korean Air
Lines Flight 007 out of the sky over Sa-
khalin Island, hurling 269 civilians to
their deaths in the Sea of Japan. On the
anniversary, the inevitable conspiracy
theories are attracting worldwide, and of-
ten uncritical, attention, perhaps more
than at any other time since the incident.
Some of the allegations, contends Roy
Godson, a U.S. intelligence expert at
Washington's Georgetown University,
are a result of "a massive, overt disinfor-
mation campaign" by the Soviet Union.
The theories. vary and sometimes con-
flict, but all attempt to make U.S. officials
had wondered about early reports that
KAL 007 might have exploded some time
after being hit by the Soviet. missile. The
Soviet broadcast twisted this into an alle-
gation by Keppel that U.S. officials had
ordered the plane blown up by remote
control after the fighter attack so that its
spy gear could never be recovered.
Another conspiracy theory was raised
Written by David Pearson, 31, a doctoral
candidate in sociology at Yale University,
the article argues that the KAL crew was
unbelievably negligent if it went so far off
course without realizing it. and that Amer-
ican experts who track aircraft and eaves-
drop on radio transmissions from Alaska
to the Far East were even more incredibly
incompetent if they failed to spot the er-
rant flight. He contends that these special-
ists must have been particularly alert since
they were aware of preparations by the So-
viets to testa new missile on Aug. 31 aimed
at the Kamchatka Peninsula, where the
airliner first flew over Soviet territory. "All
electronic eyes and ears were directed to-
ward the exact place," Pearson writes.
"Far from slipping by unnoticed, KAL 007
had flown onto center stage-"
N
o U.S. observer, however; sent word
through civilian air cohtrollers to
warn the airliner of its dangerous course.
To Pearson this suggests either a prear-
ranged U.S.-Korean spy plot or a desire by
U.S. officials to exploit an accidental intel-
ligence-gathering opportunity. The State
Department rebuttal is a categorical deni-
al: "No agency' of the U.S. Government
even knew that the plane was off course
and in difficulty until after it had been shot
down. Only the Soviets knew where it was
before it was shot down." Assistant Secre-
tary of State Richard Burt contends that
precisely because U.S. surveillance was di-
rected toward the incoming Soviet missile,
it could easily have missed the civilian air-
liner's deviant course.
So far, the only authoritative investi-
gation into the disaster was that conduct-
ed by the International Civil Aviation Or-
ganization. It concluded that there was no
evidence of the airliner being on an intel-
J anese Police searching for debris of downed aircraft a year ago
Some of the doubts stem from "a massive, overt disinformation campaign. "
share in the blame for the tragedy with
the Soviet commanders who ordered the
unarmed airliner to be destroyed. Some
maintain that the Korean plane was on a
U.S. spy mission, as the Soviets claim.
Others charge that while the plane may
have been inadvertently off course, U.S.
military trackers saw it go astray, issued
no warning and coldly exploited the situa-
tion to see how Soviet air-defense systems
would react. Concerned over the notice
such arguments were getting, the State
Department held a briefing last week at
which one official repeated. to reporters:
"These charges are totally false. The U.S.
does not use civilian airliners for intelli-
gence purposes, and there was no U.S. in-
telligence connection whatever with this
plane, directly or indirectly."
Radio Moscow even went so far as to
pick up and wildly distort an Italian
u
re
eve
o
in an unusually speculative article in De-
fence Atrache, a generally respected Lon-
don journal. An editor's note disclaimed
agreement with the views of the author,
who wrote under a pen name. The author's
basic claim was that the KAL intrusion on
Sept. 1 deliberately coincided with the Far
East passes of both a U.S. spy satellite and
the space shuttle Challenger. In his
version, the airliner was sent over Soviet
territory instead of a U.S. electronic-sur-
veillance aircraft because U.S. officials be-
lieved that the Soviets would never shoot
down a civilian aircraft. The U.S. plan, he
suggests, was for the satellite and the shut-
tle to monitor Soviet responses to the air-
liner's intrusion. NASA officials insist that
the shuttle was never close enough to re-
ceive aircraft radio transmissions from the
007 intrusion area and thus could not have
had such a monitoring assignment.
could have flown unknowingly off course
either by committing a 10? error in pro-
gramming its inertial navigation system
or by erroneously setting the Boeing 747
on a steady magnetic compass heading of
246? (an investigative series in London's
Sunday Times showed how this could
happen if a switch were left in the wrong
position, disengaging the inertial naviga-
tion system). In either case, the crew
would have been inexplicably careless in
not using other means to verify the plane's
location.
Vermont Senator Patrick Leahy, a
Democratic and often critical member of
the Senate Select Committee on Intelli-
gence, asserts that there was no intelli-
gence bonanza to be gained from a KAL
007 overflight of Soviet territory. The
U.S., Leahy points out, has far better tech-
niques for testing Soviet radar defenses
than by endangering civilians and, in fact,
continually runs such tests. He says he has
reviewed still classified information on
the airliner shooting and, despite the sus-
picions of conspiracy advocates, finds
nothing in it that wo
the S
ld
li
viets
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ON PAGE-Z30 April 1981i.
No Place Left to Hide?'
I
J. Casey has amply fulfilled his
1981 pledge to lead the Central
Intelligence Agency to "good new
days." The decimated spy agency he took
over as director at the start of Reagan's
term has been fattened by budget in-
creases that not even the Pentagon can
match in percentage terms. Staff has mul-
tiplied, intelligence collection and analy-
sis have vastly speeded up. Morale has
soared as public animosity engendered by
the assassination plots and other "dirty
tricks" of the 1960s and '70s has faded.
The agency is again recruiting on college
campuses, where its initials were once re-
garded as an anagram of evil.
But by another test the agency at
times seems to be heading straight back to
the bad old days. Once more, relations be-
tween the CIA and Congress are being en-
veriomed by mutual distrust and anger.
Prominent members of ? both parties
charge that Casey not only broke interna-
tional law by having the CIA mine three
Nicaraguan harbors, but flouted the agen-
cy's obligation to keep the intelligence
committees of Congress "fully and cur-
rently" informed of what it was doing. For
his part. Casey, in the words of one of his
Administration colleagues, "views Con-
gress as a bunch of meddlers, messing
around in his business."
Vermont Democrat Patrick Leahy, a
member of the Senate Intelligence Com-;nittee, warns that support for the CIA is
eroding because "many Republicans and
Democrats in Congress are saying that
they consider Mr. Casey's credibility to be
at an alltime low." Storms Minnesota Re-
publican Senator David Durenberger:
"There is no use in our meeting with Bill
Casey. None of us believe him. The cava-
lier, almost arrogant fashion in which he
has treated us as individuals has turned
the whole committee against him." To
dramatize his protest that Casey kept
the group in the dark about the Nicaragua
mining, New York Democrat Daniel Pat-
rick Moynihan vows to resign as vie
chairman of the Senate Intelligence
Committee.
Some Administration officials are
concerned that Casey will never be able to
restore enough trust in Congress to win
continued funding for the covert opera-
tions that are the CIA director's special.
pride. Indeed, there are whispers around
the White House from pragmatists as well
as a few hard-liners that the best service
Casey could now perform for the CIA
would be to quit.
There is little chance that Casey or his
boss, Ronald Reagan, will heed or even
hear such advice. Casey, who managed
Reagan's 1980 campaign, is closer to Rea-
gan than perhaps any previous CIA direc-
tor has been to his President.
He has become one of the driving
forces in setting-as well as carrying
out-U.S. policy toward Nicaragua. The
Administration asserts that its aim is to
harass the Sandinista government until it
stops trying to foment Communist revolu-
tion throughout Central America. The
main instrument for achieving this is CIA
training, arming and financing of the con-
tra guerrillas who are waging war against
the Sandinistas.
Many lawmakers have long been
afraid that the CIA backing of the contras
would drag the U.S.,into a war against
Nicaragua, and Casey's briefings did_ not
always reassure them. One Senator told
TIME last week that the CIA director once
went so far as to present a plan for a possi- I
ble eventual partition of Nicaragua be-
tween a Sandinista regime in the west and
a contra-ruled state in the east. Though
the congressional committees cannot veto
any CIA activities outright, they can, in
Moynihan's words, "push and pull" the
agency away from dubious schemes (as
Con rotted
n rebuilding the CIA, Casey has made missteps and infuriated Congress
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Nicara -- I? _F ""?' t'?` uuun
gua). Should that fail, the commit-
tees can secretly write into appropriations
bills Provisions for denying funds.
Until the mining episode, most legis-
lators felt, Casey had been keeping the
committees adequately informed. Nor is
the CIA director solely to blame for the
gaps that have since appeared in the legis-
lators' knowledge. Several Senators on the
Intelligence Committee confess they were
remiss in not insisting on a briefing on CIA
activities in Nicaragua early this year,
and for failing to question Casey on'refer-
ences he made to the mining when he did
meet with them twice in March_ (The
House Intelligence Committee was
briefed on Jan. 31.) _ Still, Moynihan and
others contend that Casey, at min.i,mum,
did not fulfill the command of the 1980
law that he "apprise the committees of
even "any significant anticipated intelli-
gence activity." The mining had begun
about a month. before the House Intelli-
gence Committee briefing. Indeed, raids
on Puerto Sandino last Sept. 8 and on the.
Oil-storage tanks at Corinto on Oct. 10
were carried out, as was the later mining
of the same ports, by Latin American
commandos recruited and trained by the
CIA and dispatched aboard speedboats
from a CIA mother ship cruising off Nica-
ragua's Pacific coast. Not until March 30,
in a letter to the Senate Intelligence Com-
mittee staff that congressional sources
CIA confirm, in its inimitable
bureaucratic jargon, that the
raids were carried out by
"unilaterally controlled La-
tino assets."
. The Senate Intelligence
Committee has called a
meeting for Thursday at
which, Moynihan pledges,
Casey will be asked "tough
questions" about whatever
operations the CIA may be
conducting or planning in
Nicaragua. One idea being
floated by some Senate Intel-
ligence Committee staffers is
to require the CIA to certify
weekly that it is not support-
ing any contra activities that
have not been disclosed to
Congress.
Any new- restrictions
would break a string of suc-
cesses in expanding and revi-
talizing the CIA that Casey's
bitterest critics admit has
been highly impressive. Dur-
ing the 1970s, revulsion over
some of the agency's early
operations prompted cuts of
40% in the agency's budget
and 50% in its staff. At the
end of the Carter Adminis-
tration, policymakers were-
receiving intelligence , esti-
mates at the lethargic rate of
one a month.
Casey came to the agency
with top credentials. He
CIA-RDP87M00539R002904800038-5
The Imperious director. defiant of Capitol Hill
learned intelligence by directing opera-
tions in . Nazi-occupied Europe for the
wartime Office of Strategic Services. Dur-
ing the Nixon and Ford Administrations,
he served in a variety of economic posts.
In his first three years as CIA director, he
wangled budget increases of 20% or more
out of Congress each year. (The agency's
figures are secret, but a reliable estimate
of its expenditures is $1.5 billion for the
current fiscal year.) That has made possi-
Democrat Moynihan: appalled
ment assets and nearly
2S500,000 in personal liabil-
I ities. Questions about his ii-
{' C'scrutiniz rig his involvement
Ravaged oil depot at Corinto: a CIA raid by ___ la "-'m?' o- ee
"unilaterally controlled" Latin Latinos
land. Casey takes special joy
in having revived covert op-
erations. He is said to have
'made several trips in un.
marked planes to Honduras
to check on the progress of
contras training there. Says I
one associate: "He's happy as
a clam when it comes to co-
vert operations."
When it comes to dealing
with Congress, however, he
would prefer to be just a clam.
Right at the start, the Senate
Intelligence Committee cen-
sured Casey, a lawyer and
venture capitalist in private
life, for failing to disclose dur-
ing his confir
ti
ma
on hearings
Republican
Durenberger frustrated more than $250,000 in invest-
ble a substantial increase in the number of
CIA employees, to a current total of
18,000. One sign of the CIA's increased
prestige: 250,000 Americans answered
help-wanted ads the agency ran last year.
The CIA selected 10,000 for serious
screening and eventually hired 1,400. Pro-
duction of national intelligence estimates
quintupled to 60 last year, and by com-
mon consent Casey has improved their
quality too. Among other things, he has
reorganized the agency's intelligence ana-
lysts, once grouped by specialty, along re-
gional lines. Economists and political spe-
cialists, for example, now collaborate in a I
single report on a specific area. Casey's
policy views are vehemently anti-Com-
munist, a factor that insiders say has also
raised agency morale. But by all accounts
Casey has kept his advocacy separate
from the scrupulously straight analyses he
presents to his Administration colleagues.
here are some flaws in this record.
What the CIA calls ."human intel-
ligence" has not yet. - recovered
from the savage staff cuts carried
out during the Carter Administration by
Casey's predecessor, Stanfield Turner,
who preferred to collect intelligence by
electronic means. Casey did not have a
single agent on Grenada until a few days
before the American invasion last Octo-
ber, and could not provide an accurate es-
timate of the number of Cubans on the is-
The Senate investigation
left a permanent legacy of
bitterness. Some Senators felt
that Casey had misled them
about his finances, and
looked with increased suspi-
cion on his running of covert
operations. Casey felt that
some lawmakers were con-
ducting a vendetta against
him and was strengthened in
his natural tendency to tell
them no more than the'law
Conh.nuad
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requires.- Says one official who worked
closely with Casey during that period:
"Casey gets mad, and be also tries to get
even. The attacks from the Hill just com-
pounded an existing disdain for the legis-
lative branch of Government."
Casey's counterparts in other democ-
racies have little need to deal with their
legislatures at all. The beads of the British
agencies, MIS and M16, report to an exec-
utive committee chaired by the Prime
Minister, who does not officially tell Par-
liament so much as their names.
French-law gives the National As-
sembly the right to ask questions about
the operations of the intelligence services,
but the government's usual, and accepted,
answer is a blank "secret de la defense. "
The West German Bundestag does have a
watchdog committee for that nation's
equivalent of the CIA. But the committee's
eight members are sworn to deepest secre-
cy. The Bundestag has declared members
of the antinuclear Green Party ineligible
to serve on the committee because they
would not take the pledge.
nder the American system of leg-
islative oversight, there is a built-
in conflict between the lawmak-
ers' need to assure themselves
that the agency is responsive to demo-
cratic control and the CIA director's ne-
cessity to keep delicate operations secret
as"long as possible. Intelligence Commit-
tee members argue, with justification,
that they can keep a secret when per-
forming their legitimate oversight func-
tions: because of the very nature of such
"coven" activities as mining Nicaraguan
harbors and blowing up oil tanks, knowl-
edge about the CIA's role in these opera-
tions is likely to become public. but gen-
erally not through Intelligence
Committee leaks. But in turn, the CIA is
justified in resisting congressional temp-
tation to oversupervise the agency's pro-
grams by becoming involved in the logis-
tical details of specific operations.
Part of the problem. some legislators
concede, is that the Intelligence Commit-
tees are t,-,o large, and their members (16
House, 17 Senate) too busy with other as-
signments. to handle their important
oversight role in a judicious manner. Says
Senator Leahy: "We have got to find a
way for Senators to be far better briefed
on coven activity. It may require a couple
of Democrats and a couple of Republi-
cans who will meet several hours each
week and then give a broad report to the
full committee."
This alone, however, will not be
enough to handle the far more serious
underlying problem. No oversight ar-
rangement will work, nor will any pro-
gram to rebuild America's covert capabil-
ities work. until a way can be found to
dissipate the corrosive mistrust and suspi-.
cion that has built up between Casey's CIA
and Congress. -By George J. Church.
Reported by Ross H. Munro and Christopher
Redman/Washington, with other bureaus
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TIME
A Letter from the Publisher
T he KGB, the Soviet secret police and espionage agency, is the
world's largest information-gathering organization and cer-
tainly its most mysterious. For this week's cov-
er story on the shadowy secret service that nur-
tured the Soviet Union's new leader, Yuri
Andropov, TIME correspondents employed
their own resourceful information-gathering
techniques. In a dozen capitals, they pieced to-
gether anecdotes-and insights from intelligence
agents, diplomats, academic specialists and
members of the Russian dmigrd community. In
London. TIME's Frank Melville met with De-
fector Vladimir Kuzichkin, a former KGB ma-
jor. Washington Correspondent Christopher
Redman talked with past and present members
of U.S. intelligence and found them'wary about
revealing too much knowledge of KGB opera-
tions. lest it tip off Soviet spies to U.S. capabili-
ties. Moscow Bureau Chief Erik Amfitheatrof
,probably had the most delicate assignment.
"Soviet citizens are usually leery of talking
THE WEEKLY NEWSMAGAZINE
about the KGB's pervasive power." In New York, on the receiv-
ing end of the gleanings from correspondents, were Senior Edi-
tor Donald Morrison, and Staff Writer John Kohan, who wrote
the story.
Part of the cover package is a report on Bulgaria, written by
Chief Richard Hornik traveled to Sofia, Bul-
garia's capital, and gained a different perspec-
tive. "The country has been in the news be-
cause of an assassination plot," Hornik says.
"But with its ancient culture beautiful scene
Amfitheatrof in Red Square
about the KGB," he reports. "But those willing to be interviewed
provided insights available nowhere else. One person told me,
`If you walked down the street with a sign reading GLORY TO
COMMUNISM, the KGB would detain you, because all unautho-
rized action is prohibited.' That said something very real to me
and relatively y prosperous economy, Bulgaria is in itself a subject
worthy of separate journalistic analysis."
that Balkan nation's reputation as an espionage
surrogate for the Soviets, perhaps even in the
1981 assassination attempt on Pope John Paul
II. Rome Correspondent Barry Kalb has fol-
lowed the scenarios that have speculated on
various countries' possible roles in the affair. In
Washington, Correspondent Ross H. Munro
canvassed the intelligence community and
pored over the Soviet press. Rome Bureau
Chief Wilton Wynn went to Turkey to assess
"the amazing Bulgarian involvement in arms
and drugs, and Bulgarian activities aimed at
destabilizing Turkey." Eastern Europe Bureau
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6 November 1977
efid-in' Chnt"%ese.eco.,
PM I'S
lists ~~ricuIture, woes
By Ross H. Munro
meat agriculture American-surpluses.)
. He also stressed concern with Firstly the. growth= of
meat. oain.?n f{,n{F concern
and light industry falls short of demand
speech, China's leading economic- plan- .. uctivity. He also made a statement Suppliers ?-are Canada,.- Australia,. and
ner has described the Chinese economy which raised the possibility that there - Argentina, China bought 7.9 million me-
as one confronting serious problems. might-be increases. in the prices of some tric tons of U.S. grain from 1972 to 1974
Vice Premier Yu Chiu-Li said that food products. but hasn't purchased any since. There is
while the tide. is turning there are serf Yu singled out three areas of the Chi speculation that if China is forced to
bus problems in the agriculture and. en- nese economy which are of special con- buy more grain because of skimpy fall
tern:
ergy sectors and in industrial manage- harvests, it could reopen a market for
44 i, 1.
P E K I N G--In a : frank and' sobei ` more closely tied to a, worker's prod- -% of this .will come from the U.S.
since the, radicals fell from power a regions and excessive rainfall in others. management and. the management of.,
year ago,-he said, wages were increased [The agency concluded that the grain. enterprises has just begun and no signif- :
effective Nov. 1. Providing details for harvest is unlikely to increase signifi icant improvement has yet been made.
the first time, he said about 46 per cent cantly over the 285 million metric tons .as regards the poor quality of products,,
of the workers,.' apparently including of- produced in 1976 and may not keep pace big consumption of material; 'low labor
fice workers, were eligible for wage in- with population growth for the second productivity, high production costs, and
creases. He said they are the ones "with consecutive year. the tying up Of, too much funds," Yu
many years of working experience who [The CIA said iti is unlikely that the said. In other words, factories are still
receivefairly_low pay." Another 10 per fall harvest will be large enough to com- grosslyu mismanaged and quite ineffi
teering, and other capitalist activities. people's life." In other words, food and meat ot-_the fuel and .power industries
Speaking at a meeting of the standing ? consumer goods, are in short supply and and the-primary goods industry is not
committee of the National People's Con- :.China is still forced to import wheat. keeping pace . with the growth of the
gress, Yu indicated that the government [IN LATE OCTOBER, the United national economy." The energy shortage.
plans, to step up? its supervision, plan- in particular seems to have- become a
ring, and control of the Chinese econo-? States Central Intelligence Agency re- serious'," industrial bottleneck; China is
my. ported that China had disappointing bar- still importing large quantities of oil
vests of winter wheat and early rice
Because of the increase in production because of drought in some key growing "Thirdly consolidation "of- economic
YU HINTED, however that China ready contracted for imports of 11.7 mil
plans to move toward more of an incen. lion metric tons of wheat during an 18-
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INTRODUCTION
When Ronald Reagan was first elected President, he and
his Republican supporters described their ascendancy to
the White House as "A Great New Beginning." Today,
four years later, that label may not have entered our polit-
ical lexicon with the same rhetorical flourish as the New
Deal, Fair Deal, New Frontier, or Great Society, but the magnitude of
change imposed by its policies will not be soon forgotten. And while Presi-
dent Reagan's extraordinary re-election triumph has affirmed the public's
support for the man and his Administration's general direction, it has trig-
gered a serious debate over the specific policies to be pursued during the
next four years.
Just where is this Great New Beginning going, and how will it affect
those beyond our nation's borders? These and many other issues will surely
form the basis of the dialogue-and indeed it can only be the beginning of a
long and continuing dialogue-that will begin during UPDATE ON
AMERICA `85.
During the next three days you will meet many of the people most inti-
mately involved in this newly re-elected Administration. They are people
not only in the news, but people important in making the news. You will
hear a great deal from them about the problems they face and the solutions
they seek. But most importantly, you will have the opportunity to observe
firsthand the differences and controversies from which agreement must
evolve if policy-making is to be effective.
We welcome you in joining us as "journalists in residence" during your
stay in Washington. And in that role we urge you to actively participate as
question askers and probers. The success of this venture depends in large
part on your drawing out these people at the top. Our speakers are used to
questions and they will enjoy a lively exchange of viewpoints with you.
John A. Meyers
Publisher
0
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PROGRAM
TIME/CANADA ? UPDATE ON AMERICA '85
FEBRUARY 24-27, 1985
SUNDAY, FEBRUARY 24 SPEAKERS
6:30 PM Reception & Dinner
Mount Vernon Room
The Madison Hotel
John A. Meyers
Vice President, Time Inc.
Publisher, TIME
Ralph P. Davidson
Chairman of the Board, Time Inc.
Richard L. Duncan
Chief of Correspondents,
Time-Life News Service
Assistant Managing Editor, TIME
Henry A. Grunwald
Editor-in-Chief, Time Inc.
H.E. Allan E. Gotlieb
Ambassador of Canada
MONDAY, FEBRUARY 25
7:45 AM Breakfast
Mount Vernon Room
The Madison Hotel
9:00 AM Briefing: Update on America
Executive Chambers
The Madison Hotel
10:30 AM Briefing
Executive Chambers
The Madison Hotel
Senator Robert J. Dole
Republican, Kansas
Senate Majority Leader
Strobe Talbott
TIME Washington Bureau Chief
Laurence I. Barrett
White House Correspondent
TIME Washington Bureau
Johanna McGeary
State Department Correspondent
TIME Washington Bureau
Christopher Redman
National Economics Correspondent
TIME Washington Bureau
The Hon. Donald P. Hodel
The Secretary of the Interior
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12:00 Noon Sharp Board bus-main entrance, Madison Hotel
12:30 PM Reception & Luncheon
1925 "F" Street Club
3:30 PM Briefing
The Pentagon
5:30 PM Briefing
Main Commerce Building
7:15 PM Sharp Board bus-main entrance, Madison Hotel
7:30 PM Reception & Dinner
The Phillips Collection
TUESDAY, FEBRUARY 26
8:00 AM Breakfast
Mount Vernon Room
The Madison Hotel
10:00 AM Sharp Board bus-main entrance, Madison Hotel
10:30 AM Briefing
Montpelier Room
The Sheraton Grand Hotel
12:30 PM Reception & Luncheon
City Tavern Club
The Hon. William E. Brock
United States Trade Representative
The Hon. Caspar W. Weinberger
The Secretary of Defense
The Hon. Malcolm Baldrige
The Secretary of Commerce
Representative Thomas S. Foley
Democrat, Washington
Representative Jack F. Kemp
Republican, New York
Senator Joseph R. Biden, Jr.
Democrat, Delaware
Senator William S. Cohen
Republican, Maine
Senator Gary W. Hart
Democrat; Colorado
Senator Nancy L. Kassebaum
Republican, Kansas
The Hon. Henry C. Wallich
Member, Board of Governors
Federal Reserve System
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18
3:30 PM Briefing
Time Inc. Suite
The Hay-Adams Hotel
4:30 PM Briefing
The White House
5:45 PM Briefing
The State Department
7:45 PM Sharp Board bus-main entrance, Madison Hotel
8:00 PM Reception & Dinner
The Corcoran Gallery of Art
WEDNESDAY, FEBRUARY 27
7:30 AM Breakfast
Executive Chambers
The Madison Hotel
10:30 AM Sharp Board cars-main entrance, Madison Hotel
11:00 AM Wrap=up Session
Meridian House
12:00 Noon Reception & Luncheon
Meridian House
The Hon. William J. Casey
Director, Central Intelligence Agency
The Hon. Robert C. McFarlane
Assistant to The President for
National Security Affairs
The Hon. George P. Shultz
The Secretary of State
The Hon. Richard R. Burt
Assistant Secretary of State
Senator John C. Danforth
Republican, Missouri
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Thomas P. d'Aquino President and Chief Executive Officer
Business Council on National Issues, Royal Bank Centre, 90 Sparks Street, Ottawa,
Ontario KIP 5B4
Thomas P. d'Aquino is president and chief executive
officer of the Business Council on National Issues, an
organization composed of some 150 chief executive
officers of major enterprises in Canada. Born in Brit-
ish Columbia and educated at universities there and in
London and Paris, Mr. d'Aquino is a lawyer who has
served in the federal government and as legal counsel
and advisor to a number of other governments as well
as to business corporations in Canada and abroad. He
is also chairman of Intercounsel, a consulting group based in Ottawa.
Formed in 1976, the Business Council is the means chosen by senior
business leaders to contribute personally to the development of public pol-
icy and to the shaping of national priorities. By no means a lobbying organi-
zation, it is dedicated to the fostering of public policies that will lead to a
stronger economic and social fabric within a healthy democratic society.
The enterprises represented on the Business Council administer in excess
of $600 billion in assets and produce more than $190 billion in revenue
every year.
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Charles F. Baird Chairman and Chief Executive Officer
Inco Limited, 1 First Canadian Place, Toronto, Ontario M5X 1C4
Charles F Baird, the chairman and chief executive
officer of Inco Ltd., is an American who was born in
Southampton, Long Island. An alumnus of Middle-
bury College in Vermont, he served as an officer in
the U.S. Marine Corps in World War II and the
Korean War, and spent 17 years with Standard Oil
Co. (N.J.), now Exxon, and its affiliated companies.
Between 1965 and 1969 he was in the U.S. Navy
Department, first as an Assistant Secretary (Financial
Management), and then as Under Secretary. Joining Inco in 1969 as vice
president of finance, he held other senior executive positions before moving
up to his present job in April 1980.
The world's leading producer of nickel, Inco was known as the Interna-
tional Nickel Co. before taking its present name nine years ago. It is also a
major producer of copper, the platinum-group metals, gold, silver and
cobalt. In addition to its primary metal operations in Ontario and Manitoba,
the company produces a wide range of metal products in Canada and the
U.S.. Inco's headquarters are in Toronto but it also has executive offices in
New York City. Overseas, it has mining or processing facilities in Indonesia
and Great Britain.
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Michel F. Belanger Chairman and Chief Executive Officer
National Bank of Canada, 600 rue de La Gauchetiere West, Montreal, Quebec H3B 4L2
Michel F. Belanger, chairman and chief executive
ff
f
h
i
icer o
o
t
e Nat
onal Bank of Canada, was born in
Levis, Quebec, and was educated at Universite Laval
in Quebec and at McGill University. In 1954 he began
a long career of public service that included six years
with the Department of Finance in Ottawa and several
positions in the provincial government of Quebec,
among them Deputy Minister, Industry and Com-
merce and Secretary of the Treasury Board He
joined the Provincial Bank of Canada in 1976 as president and was named
its chief executive officer the following year. He retained this position in
1979 when the bank was merged with the Bank Canadian National and the
National Bank of Canada was formed. He has held his present title since
July 1, 1984.
National Bank of Canada has a network of 580 branches that includes
470 in Quebec, 75 in Ontario and the Western Provinces, and 35 in the
Atlantic Provinces. Parallel to its branch network, the bank has established
a National Accounts Division for servicing large corporations; it also
provides leasing services and is involved in international financial and
money markets.
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Rodrigue J. Bilodeau Chairman and Chief Executive Officer
Honeywell Limited, 155 Gordon Baker Road, North York, Ontario M2H 3N7
Rodrigue J. Bilodeau has been chairman of Honeywell
L
d
i
1974 A
i
f
t
s
nce
nat
ve o
Levis Quebec and a
..,, Royal Canadian Air Force pilot in World War II, he
0 holds degrees from St. Francis Xavier University in
Antigonish, Nova Scotia, and McGill University. He
has been associated with Honeywell since 1950, when
he joined the company as a salesman. Among his
many outside activities, he is a past president of the
Canadian Manufacturers' Association
An advanced technology company, Honeywell Ltd. provides both stand-
alone and integrated computer and microprocessor-based automation
products. It also provides systems solutions to such markets as data pro-
cessing and office automation, total building environmental control, natural
resource-related industrial processing automation, medical electronics,
and security systems. The company maintains one of Canada's leading
software and development centers. It is a wholly-owned subsidiary of
Honeywell Inc. of Minneapolis.
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Warren Chippindale, FCA Chairman and Chief Executive Partner
Coopers & Lybrand (Canada), 145 King Street West, Toronto, Ontario M5H 1V8
Chairman and chief executive partner of Coopers &
L
brand (Canada)
Warren Chi
indale was born in
y
,
pp
4 Denver, Colorado, of Canadian parents. He was edu-
cated in Montreal and upon graduation from McGill
University joined the Montreal firm of McDonald,
Currie & Co., chartered accountants whose history
dates to the beginnings of the accountancy profession
in Canada. Mr. Chippindale was named chairman and
chief executive partner of McDonald, Currie in 1971.
In 1957, McDonald, Currie & Co. was one of the three founding mem-
bers of Coopers & Lybrand (International); it kept the McDonald, Currie
name until 1973, when it adopted the uniform international name of
Coopers & Lybrand. With 378 offices in 92 countries, Coopers & Lybrand
has the largest network of accounting offices in the world. Each of the mem-
ber firms is an independent unit, but they form a closely-knit organization
linked by common policies and procedures. In Canada, the firm is located
in all provinces, with 22 offices in major cities. Its associated management
consulting firm, Currie, Coopers & Lybrand Ltd., has conducted assign-
ments for more than half of the firms on the Financial Post's listing of the
100 top Canadian companies.
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G. Denton Clark Chairman, President and Chief Executive Officer
RCA Inc., Royal Bank Plaza, Toronto, Ontario M5J 2J4
G. Denton Clark, chairman, president and chief
executive officer of RCA Inc., is from Prince Edward
Island. After serving in World War II as a pilot in the
Royal Canadian Air Force, he received degrees in
engineering from the University of New Brunswick
and McGill University. He was with the National
Research Council in Ottawa before joining RCA in
Montreal as manager, field operations, in 1956. RCA
stationed him in Greenland, Alaska, Florida and
New Jersey before naming him president of RCA Inc. in 1973. He became
chairman and chief executive officer three years later.
RCA Inc., a leader in Canadian consumer electronics, is a wholly-owned
subsidiary of RCA Corp. of New York. As such, it produces and sells many
of the products of its parent, notably equipment in the expanding video
market and is a major supplier of music on records and tapes. It also
imports and distributes the products of affiliated companies, including inte-
grated circuits and closed circuit television equipment. The company oper-
ates out of 20 locations in Canada, from Halifax to Victoria.
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D. Steele Curry President and Chief Executive Officer
Revelstoke Companies Limited, 508-24th Avenue, S.W., Calgary, Alberta T2P 2N2
Born in Winnipeg, Steele Curry is a graduate of Stan-
ford University, Palo Alto, California, and the Har-
vard Business School. Upon completing his education
he went into real estate development and consulting in
Los Angeles and Toronto. In 1968 he became vice
president and director of Triarch Corp., where his
principal activities were raising capital for corpora-
tions and advising companies on mergers and acquisi-
tions. Joining Revelstoke Companies Ltd. in 1971 as
president and chief executive officer, Mr. Curry also serves as president
and a director of Venture Funding Corp., the company that holds a control-
ling interest in Revelstoke.
Revelstoke's main business consists of 80 retail stores, located across
Western Canada, which sell a wide range of "do-it-yourself" home
improvement products. The company is also in the business of producing
redi-mix concrete at 21 plants in Alberta, British Columbia, and Saskatche-
wan, and it manufactures lumber at four Western Canadian mills. It also
owns a concrete-producing subsidiary in Texas. Its retail division accounts
for almost 75 percent of its total sales.
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Anthony S. Fell President and Chief Executive Officer
Dominion Securities Pitfield Limited, Commerce Court South, Toronto, Ontario M5L 1A7
Anthony S. (Tony) Fell was born in Toronto. Edu-
cated at St. Andrew's College in Aurora, Ontario, he
joined Toronto's Dominion Securities Corp. in 1959
at the age of 20. Today he is president and chief exec-
utive officer of Dominion Securities Pitfield Ltd.,
a leading firm of underwriters of government and
corporate securities. He sits on several boards,
among them Goodyear Canada Inc. and Kellogg
Salada Canada Inc.
Dominion Securities Pitfield began operations under this name on June
1, 1984 following the merger of the two companies, Dominion Securities
Ames and Pitfield Mackay Ross. Both of the merger partners have long his-
tories in the Canadian investment community; Dominion Securities was
founded in 1901 and Pitfield Mackay Ross dates to 1928. With a capital base
of $100 million, the merged firm has 65 offices in 59 Canadian cities coast-
to-coast; it also has an international presence with offices in New York City,
Chicago, London, Paris, two offices in Switzerland and two in the Far East.
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Rowland C. Frazee Chairman and Chief Executive Officer
The Royal Bank of Canada, P.O. Box 6001, Montreal, Quebec H3C 3A9
Rowland C. Frazee has been chief executive officer
of The Ro
al Bank of Canada since 1979 and its chair-
y
man since 1980. Born in Halifax, Nova Scotia, he
first joined The Royal at a New Brunswick branch in
1939. After serving with the Canadian Army in
World War II, he graduated with a degree in com-
merce from Halifax's Dalhousie University in 1948
and then rejoined the bank in New Brunswick. Over
the next three decades he held positions of increasing
responsibility with The Royal, culminating with his appointment to the
positions he now holds.
Chartered in 1869, The Royal Bank of Canada is Canada's largest char-
tered bank, with assets at the end of fiscal 1984 of $88 billion. It ranks No.
18 on Fortune's directory of the largest commercial banking companies
outside the U. S. Although its corporate headquarters are in Montreal, the
bank's operations are managed through 11 regional headquarters, seven
across Canada and four in major world financial centers. Its domestic oper-
ations include a network of 1,440 branches throughout the country; interna-
tionally, its coverage is provided by more than 270 commercial, wholesale
and retail operating units and through more than 5,000 correspondent bank-
ing relationships.
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Charles H. Hantho Chairman and Chief Executive Officer
C-I-L Inc., 90 Sheppard Avenue East, North York, Ontario M2N 6H2
Charles H. (Chuck) Hantho, C-I-Us chairman and
chief executive officer, was born in Lethbridge,
Alberta. After earning a degree in chemical engineer-
ing at the University of Alberta, he joined C-I-L's
plastics division in 1953. His rise in the company
included a two-year assignment as deputy chairman
of the petrochemicals division of Imperial Chemical
Industries (I. C.I.) of Great Britain, which owns
almost three-fourths of C-I-L's shares. He also car-
ried overall responsibility for the company's external relations and new
business developments in Western Canada. He was appointed president
and chief operating officer in 1981, chief executive officer in 1982, and
chairman in 1984.
C-I-L is a company whose history in explosives and chemicals manufac-
turing dates back to 1862. Today it accounts for about 10 percent of the sales
of the entire Canadian chemical industry, with products that include agri-
cultural chemicals and fertilizers, commercial explosives and accessories,
and industrial and specialty chemicals. Most of its mainline businesses,
including chemicals, explosives, plastics and paints, maintain major
research centers.
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Richard John Lawrence Chairman and Chief Executive Officer
Burns Fry Limited, First Canadian Place, Toronto, Ontario M5X 1H3
Burns Fry Ltd. 's chairman and chief executive officer,
Richard John (Jack) Lawrence received honors in
business administration from the University of West-
ern Ontario. Upon graduation he joined Equitable
Securities, a Toronto firm, as a money market spe-
cialist. In 1961 he shifted to Fry Mills Spence Ltd., a
predecessor of his present company. He was president
of Fry Mills Spence in 1976, when it merged with
Burns Bros. and Denton Ltd. He retained the position
in the merged company and was named chairman and chief executive offi-
cer in May 1984.
The formation of Burns Fry Ltd. brought together two securities firms
whose roots go back almost 60 years in the Canadian investment industry.
Today it has the dominant share of the Canadian secondary bond market
and is the leader in Canada for acquisitions, divestitures, valuations and
financial advisory services. Together with Burns Fry and Timmins, Inc., its
U.S. subsidiary, it holds 23 stock exchange seats in Canada and the U.S.
and is the prime company for the sales and trading of Canadian stocks and
bonds in the U. S..
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C. Edward Medland Chairman and Chief Executive Officer
Wood Gundy Inc., Toronto-Dominion Centre, Toronto, Ontario M5K 1M7
C. Edward (Ted) Medland was born in Toronto and is
a graduate of the University of Toronto. He joined the
Toronto investment firm of Wood Gundy in 1950 and
has been its chairman and chief executive officer
since 1978. Among the companies of which he is a
director are the International Thomson Organization
and the Seagram Co.. He is also a director of Welles-
ley Hospital.
Established in 1905 in Toronto by G.H. Wood and
J.H. Gundy, Wood Gundy is an international investment dealer providing
assistance to corporations, governments, and private and institutional inves-
tors. In addition to its many offices in Canada, it has long maintained a
fully-staffed operation in Great Britain and is now enlarging the size and
services of its U.S. division. It has also opened an office in mainland
China. Its Chinese affiliate, says the Wood Gundy annual report, "will
examine two-way investment opportunities in one of the largest undevel-
oped markets in the world."
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Stanley F. Melloy Chairman
The Continental Bank of Canada, 130 Adelaide Street West, Toronto, Ontario M5H 3R2
Stanley F. (Stan) Melloy, chairman of the board of
The Continental Bank of Canada
flew with the Ro
al
,
y
Air Force during World War II and was awarded the
Distinguished Flying Cross. He graduated from the
University of Toronto in 1948 and went to work for
his present organization in the same year. In addition
to his duties at the bank, he serves as chairman of
the board of directors of the Canadian Chamber of
Commerce.
Originally known as Industrial Acceptance Corp. and then as IAC, Ltd.,
Continental Bank of Canada adopted its present name in 1981. A full-
service bank with overseas interests, it operates 57 branches throughout
Canada, maintains a branch in the Cayman Islands, and has a representa-
tive office in London. Active also in civic affairs, the bank is involved in
underwriting cultural events in many parts of Canada. And, having agreed
to support the Canadian Olympic Hockey Program, it will be known as
"Bankers to Team Canada" until the 1988 Olympics in Calgary.
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J.E. Newall Chairman, President and Chief Executive Officer
DuPont Canada Inc., Box 2200, Streetsville, Mississauga, Ontario L5M 2H3
J. Edward (Ted) Newall, chairman, president and
chief executive officer of Du Pont Canada Inc., was
born in Holden, Alberta, and received a degree in
commerce from the University of Saskatchewan.
Having worked for DuPont while a student, he joined
the firm on graduation, in 1958, and was given a
series of assignments that led in 1972 to his appoint-
ment as director of the company's Fibres Group. He
was named executive vice president in 1975, president
and chief executive officer in 1978, and chairman in 1979.
Three-fourths of DuPont Canada Inc. 's common shares are owned by
E.I. du Pont de Nemours & Co. of Delaware, but management of the com-
pany is Canadian as are ten of its 12 directors. One of Canada's leading
chemical companies, its operations fall into three broad groups: fibres,
plastics and films, and chemicals. Product innovation has helped establish
the company's products in some 65 foreign markets. New or improved
products introduced in 1982 and 1983 accounted for almost 10 percent of
1983 revenues.
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Alfred Powis, O.C. Chairman and Chief Executive Officer
Noranda Inc., Commerce Court West, Toronto, Ontario M5L 1B6
Noranda Inc. 's chairman and chief executive officer,
Alfred Powis is a native of Montreal and a graduate of
McGill University. He joined Noranda as an internal
auditor in 1955 after four years of employment in the
investment department of Sun Life Assurance Co.
Moving up Noranda's corporate ladder, he was named
its president and chief executive officer in 1968,
chairman and president in 1977, and chairman and
chief executive officer in 1982. Mr. Powis is also
chairman of the board of trustees of the Toronto General Hospital. He was
appointed an Officer of the Order of Canada in 1984.
Noranda Inc. is a natural resource development and operating company
whose main interests, in order of importance, are forest products, metals
and minerals, manufacturing, and oil & gas. Historically, the company has
been associated with mining, but its metals and minerals division today
accounts for less than half the company's overall activity. Reflecting this
shift, the company's name was changed from Noranda Mines Ltd. in 1984.
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0
C. Richard Sharpe Chairman and Chief Executive Officer
Sears Canada Inc., 222 Jarvis Street, Toronto, Ontario M5B 2B8
C. Richard (Dick) Sharpe is a native of St. Catharines,
Ontario, and an honors graduate of the University
of Western Ontario. He was a pilot with the Royal
Canadian Air Force during World War H. In 1950 he
joined the Toronto-based retail firm of Simpsons,
Ltd. and was with Simpsons two years later, when it
signed a partnership agreement with Sears, Roebuck
& Co. of Chicago. The agreement created a new mail
order and retail company to operate in Canada under
0
the name Simpson-Sears Ltd.. Working his way up through such positions
as buyer and merchandise manager, Mr. Sharpe was named chairman and
chief executive officer of Simpson-Sears in 1979. The company's name
was changed to Sears Canada Inc. in May 1984. A director of many com-
panies, Mr. Sharpe also serves as chairman of the Retail Council of Canada
and is a director of the Sir Edmund Hillary Foundation.
With $2 billion in assets, Sears Canada operates 74 department stores,
four customer merchandise service centers, and more than 1,400 catalogue
sales units throughout Canada. Sixty percent of its shares are owned by
Sears, Roebuck & Co.
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John L. Stoik President and Chief Executive Officer
Gulf Canada Limited, 130 Adelaide Street West, Toronto, Ontario M5H 3R6
Gulf Canada president John L. Stoik was born in
North Battleford
Saskatchewan
A chemical engineer
,
.
with a degree from the University of Saskatchewan,
his studies were interrupted by World War II when he
served as a flight instructor with the Royal Canadian
Air Force. Joining Gulf as an assistant chemist in
1947, he rose to become vice president, refining, in
1968. He spent three years in Seoul, South Korea, as
chief executive officer of the Korea Oil Corp., jointly
owned by Gulf Oil Corp. and the South Korean government. Mr. Stoik was
elected president of Gulf Canada in 1976 and became its chief executive
officer in 1979.
Founded in 1906 as the British American Oil Co. Ltd., Gulf Canada has
played a major role in the growth and development of Canada's energy
industry. A fully integrated energy company with activities in all parts of
the country, Gulf Canada ranks No. 109 on Fortune's directory of the larg-
est industrial corporations outside the U.S.. Gulf Corp. of Pittsburgh owns
about 60 percent of the Canadian firm's outstanding common stock.
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TIME INC. PARTICIPANTS
Laurence I. Barrett
Correspondent
Time-Life News Service
Washington, D.C.
Ray Cave
Managing Editor
TIME
New York, New York
Brian Conboy
Vice President, Government Affairs
Time Incorporated
Washington, D.C.
Ralph P. Davidson
Chairman of the Board
Time Incorporated
New York, New York
Richard L. Duncan Donald M. Elliman, Jr.
Chief of Correspondents, International Advertising Sales Director
Time-Life News Service TIME
Assistant Managing Editor, TIME M_ M New York, New York
New York, New York
Henry A. Grunwald
Editor-in-Chief
Time Incorporated
New York, New York
Johanna McGeary
Correspondent
Time-Life News Service
Washington, D.C.
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 Sanitized Copy Approved for Release 2009/12/29: CIA-RDP87M00539R002904800038-5
Michael J. McGrath
President
Time Canada Ltd.
Toronto, Ontario
Ross H. Munro
Correspondent
Time-Life News Service
Washington, D.C.
Christopher Redman
Correspondent
Time-Life News Service
Washington, D.C.
Kelso F. Sutton
Executive Vice President
Time Incorporated
New York, New York
John A. Meyers
Vice President, Time Incorporated
Publisher, TIME
New York, New York
Karsten Prager
International Editor
TIME
New York, New York
Peter R. Stoler
Senior Correspondent
Time-Life News Service
New York, New York
Robert D. Sweeney
Worldwide Director,
Public Affairs and Special Events
TIME
New York, New York
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Strobe Talbott
Bureau Chief
Time-Life News Service
Washington, D.C.
Carol Wilkinson, M.D.
Medical Director
Time Incorporated
New York, New York
Richard B. Thomas
Vice President, Time Incorporated
Associate Publisher and Worldwide
Advertising Sales Director
TIME
New York, New York
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RX-DD2 1649 EST 02/19/85
TIMEINC NYK
TIMEINC WSH
STM: WASH.'12 - NYK -- 19 FEB 85 MSG: PER, CON
TO: NEWSDESK FOR: DICK .OUNCAN
RONALD REAGAN'S LANDSL.IDE RE-ELECTION VICTORY LESS THAN
FOUR MONTHS AGO WAS AN EVENT THAT SEEMED TO PLEASE EVEN
SOME MONDALE SUPPORTERS. IN THE WEEKS THAT FOLLOWED ELECTION
DAY, PRESIDENT REAGAN'S POPULARITY IN THE OPINION POLLS
CONTINUED TO CLIMB. THERE WAS A GOOD FEELING IN THE LAND--THAT
FOR THE FIRST TIME IN MORE THAN A QUARTER CENTURY, AMERICANS
WOULD WITNESS A PRESIDENT COMPLETE TWO FULL TERMS TO POPULAR
ACCLAIM.
BUT HERE IN WASHINGTON, THE REAGAN ADMINISTRATION'S SECOND
TERM WAS BEING AWAITED WITH SKEPTICISM, EVEN ANXIETY. FOR
IN THE WAKE OF THEIR MOMENTOUS P-OL..ITICAL VICTORY, THE PRESIDENT
AND HIS AIDES SEEMED TO BE LACKING BOTH ENERGY AND DIRECTION.
AS ONE WEEK FOLLOWED ANOTHER INTO 1905, THE FEW SIGNALS
COMING OUT OF THE WHITE HOUSE INDICATED THAT LITTLE THOUGHT
WAS BEING DEVOTED TO A SECOND TERM AGENDA OR TO LONGTERM
POLICIES. THIS UNHAPPY PERCEPTION OF AN ADMINISTRATION ADRIFT
WAS FAR FROM THE EXCLUSIVE PROPERTY OF THE PROFESSIONALLY
CRANKY MEDIA. IN FACT, IT WAS VOICED MOST VEHEMENTLY BY
CONSERVATIVE REPUBLICANS WHO WERE PREDICTING THAT REAGAN'S
SECOND TERM WOULD BE CHARACTERIZED BY POLICY "MUSH,"
BUT THE EVIDENCE OF THE PAST FEW WEEKS SUGGESTS THAT,
AS HAS SO OFTEN HAPPENED SINCE 1966 WHEN THAT HOLLYWOOD
MOVIE ACTOR ANNOUNCED HE WAS RUNNING FOR GOVERNOR OF CAL.IFORNIA,
RONALD REAGAN MAY ONCE AGAIN HAVE BEEN UNDERESTIMATED,
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lot THE FIRST MAJOR SIGNAL THAT THE REAGAN ADMINISTRATION
WAS REFUELING FOR A SECOND LEG WAS THE SURPRISE ANNOUNCEMENT
0 THAT JIM BAKERY THE PRESIDENT'S CHIEF OF STAFFY AND PON
REGANY THE TREASURY SECRETARYY WERE SWITCHING JOBS. ALL
THE HARD EVIDENCE AVAILABLE INDICATES THAT THE SWITCH WAS
WORKED CUT BY BAKER AND RFGANY WITH SOME HELP FROM 14TKE
DEAVERY THE PRESIDENT'S CLOSE AND TRUSTED AIDE WHO IS LEAVING.
THE WHITE HOUSE TO RETURN TO THE PRIVATE SECTOR. WHILE THE
PRESIDENT MAY HAVE BEEN A PASSIVE PLAYER WHO MERELY APPROVED A
{ VIRTUAL FAIT ACCOMPLI